House File 2581 - Introduced HOUSE FILE 2581 BY COMMITTEE ON WAYS AND MEANS (SUCCESSOR TO HF 2572) (SUCCESSOR TO HF 2439) (SUCCESSOR TO HSB 673) A BILL FOR An Act providing for programs and regulations administered 1 and enforced by the department of agriculture and land 2 stewardship, providing fees, providing penalties, and making 3 penalties applicable. 4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 5 TLSB 5280HW (1) 89 da/ns
H.F. 2581 DIVISION I 1 CHOOSE IOWA PROMOTIONAL PROGRAM 2 Section 1. Section 159.20, Code 2022, is amended by adding 3 the following new subsection: 4 NEW SUBSECTION . 1A. The department shall establish and 5 administer a choose Iowa promotional program as provided in 6 part 2 of this subchapter, in order to provide consumers 7 a choice in purchasing food items that originate as an 8 agricultural commodity produced on Iowa farms. 9 Sec. 2. NEW SECTION . 159.26 Definitions. 10 As used in this part: 11 1. “Food item” means any of the following: 12 a. A perishable item derived from an agricultural commodity, 13 or processed from an agricultural commodity, that is fit for 14 human consumption. 15 b. Honey produced from bees in a managed beehive. 16 2. “Iowa farm” means land in this state used to produce an 17 agricultural commodity. 18 3. “Process” means to prepare a food item in a manner that 19 allows it to be fit for human consumption. 20 4. “Program” means the choose Iowa promotional program 21 established in section 159.29. 22 Sec. 3. NEW SECTION . 159.28 Administration. 23 The department shall administer the provisions of this part, 24 including by adopting rules pursuant to chapter 17A as it 25 determines are necessary or desirable. 26 Sec. 4. NEW SECTION . 159.29 Choose Iowa promotional 27 program. 28 1. The department shall establish and administer a choose 29 Iowa promotional program to advertise for sale on a retail 30 basis a food item that originates as an agricultural commodity 31 produced on an Iowa farm, and that may include any of the 32 following: 33 a. An agricultural commodity, except that it may be prepared 34 for sale by washing or packaging in this state. 35 -1- LSB 5280HW (1) 89 da/ns 1/ 24
H.F. 2581 b. A product, if it is processed in this state and any of 1 its ingredients originate as an agricultural commodity produced 2 on an Iowa farm. 3 2. a. The department may adopt rules further defining 4 an Iowa farm and describing how an agricultural commodity 5 originates on an Iowa farm. 6 b. The department may adopt rules providing for the 7 acceptable use of ingredients originating from agricultural 8 commodities not produced on Iowa farms. In adopting the 9 rules, the department may consider whether the ingredient is 10 an incidental additive or other component that the department 11 determines is insignificant. 12 Sec. 5. NEW SECTION . 159.30 Choose Iowa logo. 13 1. As part of the program, the department may establish 14 a choose Iowa logo to identify a food item originating as an 15 agricultural commodity produced on an Iowa farm. 16 2. The department may register the choose Iowa logo as a 17 mark with the secretary of state under chapter 548. If allowed 18 under federal law, the department may also register the logo as 19 a trademark with the United States patent and trademark office 20 or as a copyright with the United States copyright office. 21 3. This section does not require the department to 22 incorporate the name “choose Iowa” as part of a mark, 23 trademark, or copyright, if such name is already protected by 24 state or federal law. 25 4. If the department registers a mark with the secretary 26 of state, registers a trademark with the United States patent 27 and trademark office, or registers a copyright with the United 28 States copyright office under this section, the state of 29 Iowa shall be named as the owner of the mark, trademark, or 30 copyright. 31 5. The use of a choose Iowa logo does not do any of the 32 following: 33 a. Provide an express or implied guarantee or warranty 34 concerning the safety, fitness, merchantability, or use of a 35 -2- LSB 5280HW (1) 89 da/ns 2/ 24
H.F. 2581 food item. 1 b. Supersede, revise, or replace a state or federal labeling 2 requirement, including but not limited to a provision in the 3 federal Fair Packaging and Labeling Act, 15 U.S.C. §1451 et 4 seq. 5 c. Indicate the grade, specification, standard, or value of 6 any food item. 7 Sec. 6. NEW SECTION . 159.31 Choose Iowa licensing agreement 8 —— fees. 9 1. A person may apply to the department to participate in 10 the choose Iowa promotional program according to procedures 11 established by rules adopted by the department. The department 12 shall evaluate and approve or disapprove applications based 13 on criteria established by rules adopted by the department. 14 The department may disapprove an application if the department 15 determines the applicant’s use of the choose Iowa logo would be 16 associated with the consumption of an adulterated or illegal 17 food item. 18 2. The department may enter into a licensing agreement 19 with a person participating in the program. The participating 20 person may use the choose Iowa logo to advertise a food item 21 originating as an agricultural commodity produced on an Iowa 22 farm, subject to terms and conditions required by rules adopted 23 by the department. A licensing agreement shall not be for more 24 than one year. 25 3. The department shall establish application and license 26 fees by rules adopted by the department. 27 Sec. 7. NEW SECTION . 159.31A Choose Iowa fund. 28 1. A choose Iowa fund is established in the state treasury 29 under the management and control of the department. 30 2. The fund shall include moneys collected as fees by the 31 department as provided in section 159.31, moneys appropriated 32 by the general assembly, and other moneys available to and 33 obtained or accepted by the department, including moneys from 34 public or private sources. 35 -3- LSB 5280HW (1) 89 da/ns 3/ 24
H.F. 2581 3. Moneys in the fund are appropriated to the department 1 and shall be used exclusively to carry out the provisions of 2 this part as determined and directed by the department, and 3 shall not require further special authorization by the general 4 assembly. 5 4. a. Notwithstanding section 12C.7, interest or earnings 6 on moneys in the fund shall be credited to the fund. 7 b. Notwithstanding section 8.33, moneys in the fund that 8 remain unencumbered or unobligated at the end of a fiscal year 9 shall not revert. 10 Sec. 8. DIRECTIONS TO CODE EDITOR —— TRANSFER. 11 1. The Code editor is directed to make the following 12 transfer: 13 Section 159.27 to section 159.25. 14 2. The Code editor shall correct internal references in the 15 Code and in any enacted legislation as necessary due to the 16 enactment of this section. 17 Sec. 9. DIRECTIONS TO CODE EDITOR —— PARTS. The Code editor 18 is directed to divide the provisions in chapter 159, subchapter 19 II, as amended, enacted, or transferred in this division of 20 this Act, into parts as follows: 21 1. Part 1, including sections 159.20 through 159.25. 22 2. Part 2, including sections 159.26 through 159.31A. 23 DIVISION II 24 REGULATION OF PESTICIDES 25 Sec. 10. Section 206.12, subsection 3, Code 2022, is amended 26 to read as follows: 27 3. The registrant, before selling or offering for sale any 28 pesticide for use in this state, shall register each brand and 29 grade of such pesticide with the secretary upon forms furnished 30 by the secretary, and the secretary shall set the registration 31 fee annually at one-fifth of one percent of gross sales within 32 this state with a minimum fee of two hundred fifty dollars and 33 a maximum fee of three thousand hundred dollars for each and 34 every brand and grade to be offered for sale in this state 35 -4- LSB 5280HW (1) 89 da/ns 4/ 24
H.F. 2581 except as otherwise provided . The annual registration fee for 1 products with gross annual sales in this state of less than 2 one million five hundred thousand dollars shall be the greater 3 of two hundred fifty dollars or one-fifth of one percent of 4 the gross annual sales as established by affidavit of the 5 registrant. The secretary shall adopt by rule exemptions to 6 the minimum fee. Fifty dollars of each fee collected shall be 7 deposited in the general fund of the state, shall be subject 8 to the requirements of section 8.60 , and shall be used only 9 for the purpose of enforcing the provisions of this chapter 10 and the remainder of each fee collected shall be placed in the 11 agriculture management account of the groundwater protection 12 fund. 13 Sec. 11. Section 206.19, subsection 5, paragraph b, Code 14 2022, is amended to read as follows: 15 b. The amount of the civil penalty that may be assessed 16 for each violation committed by a commercial applicator or 17 private applicator shall not exceed five hundred dollars for 18 each offense . 19 DIVISION III 20 REGULATION OF MOTOR FUELS 21 Sec. 12. Section 214A.1, subsections 2, 5, and 13, Code 22 2022, are amended to read as follows: 23 2. A.S.T.M. ASTM international” means the American society 24 for testing and materials international. 25 5. “Biodiesel” means a renewable fuel comprised of 26 mono-alkyl esters of long-chain fatty acids derived from 27 vegetable oils or animal fats, which is manufactured by the 28 use of a transesterification reaction, and which meets the 29 standards provided in section 214A.2 . 30 13. “E-85 gasoline” or “E-85” means ethanol blended gasoline 31 formulated with a percentage of between seventy sixty-eight 32 and eighty-five eighty-three percent by volume of ethanol, if 33 the formulation excludes a denaturant, and which meets the 34 standards provided in section 214A.2 . 35 -5- LSB 5280HW (1) 89 da/ns 5/ 24
H.F. 2581 Sec. 13. NEW SECTION . 214A.1A Administration and 1 enforcement. 2 This chapter shall be administered and enforced by the 3 department which may adopt rules under chapter 17A to carry out 4 the provisions of this chapter. 5 Sec. 14. Section 214A.2, Code 2022, is amended to read as 6 follows: 7 214A.2 Tests and standards Standards and classifications . 8 1. a. The department shall adopt rules pursuant to chapter 9 17A for carrying out this chapter . The rules may include but 10 are not limited to specifications establishing departmental 11 standards relating to motor fuel, including but not limited to 12 renewable fuel such as ethanol blended gasoline, biobutanol 13 blended gasoline, biodiesel, biodiesel blended fuel, fuels and 14 motor fuel components such as an oxygenate . 15 b. In the interest of uniformity, the department shall 16 adopt by reference other in part or in whole, as some of its 17 departmental standards described in paragraph “a” , applicable 18 specifications relating to tests and standards for motor fuel, 19 including renewable fuel and motor fuel components, adopted by 20 ASTM international and applicable requirements established by 21 the United States environmental protection agency and A.S.T.M. 22 international . 23 2. Octane number shall conform to the average of values 24 obtained from the A.S.T.M. ASTM international D2699 research 25 method and the A.S.T.M. ASTM international D2700 motor method. 26 a. Octane number for regular grade unleaded gasoline shall 27 follow the specifications of A.S.T.M. ASTM international but 28 shall not be less than eighty-seven. 29 b. Octane number for premium grade unleaded gasoline shall 30 follow the specifications of A.S.T.M. ASTM international but 31 shall not be less than ninety ninety-one . 32 3. a. For motor fuel advertised for sale or sold as 33 gasoline by a dealer, the motor fuel must meet requirements 34 for that type of motor fuel and its additives established by 35 -6- LSB 5280HW (1) 89 da/ns 6/ 24
H.F. 2581 the United States environmental protection agency including as 1 provided under 42 U.S.C. §7545. 2 b. If the motor fuel is advertised for sale or sold as 3 ethanol blended gasoline, the motor fuel must comply with meet 4 departmental standards which shall meet all of the following 5 requirements including as follows : 6 (1) Ethanol must be an agriculturally derived ethyl alcohol 7 that meets A.S.T.M. departmental standards based in part or in 8 whole on ASTM international specification D4806 for denatured 9 fuel ethanol for blending with gasoline for use as automotive 10 spark-ignition engine fuel, or a successor A.S.T.M. ASTM 11 international specification, as established by rules adopted 12 by the department rule . 13 (2) Gasoline blended with ethanol must meet requirements 14 established by rules adopted departmental standards based 15 in part or in whole based on A.S.T.M. ASTM international 16 specification D4814 , or a successor ASTM international 17 specification, established by rule . 18 (3) (a) For ethanol blended gasoline, at least nine 19 percent by volume must be fuel grade ethanol. In addition, the 20 following applies: 21 (a) (b) For the period beginning on September 16 and 22 ending on May 31 of each year, the state grants a waiver of 23 one pound per square inch from the A.S.T.M. ASTM international 24 D4814 specification for Reid vapor pressure requirement , or 25 a successor ASTM international specification, established by 26 rule . 27 (b) For the period beginning on June 1 and ending on 28 September 15 of each year the United States environmental 29 protection agency must grant a one pound per square inch waiver 30 for ethanol blended conventional gasoline with at least nine 31 but not more than ten percent by volume of ethanol pursuant to 32 40 C.F.R. §80.27 . 33 (4) For standard ethanol blended gasoline, it must be 34 ethanol blended gasoline classified as any of the following: 35 -7- LSB 5280HW (1) 89 da/ns 7/ 24
H.F. 2581 (a) From E-9 up to but not higher than E-15, if the ethanol 1 blended gasoline meets the departmental standards for that 2 classification as otherwise provided in this paragraph “b” . 3 (b) Higher than E-15 but not E-85 gasoline , if the 4 classification is authorized by the department pursuant to 5 approval for the use of that classification of ethanol blended 6 gasoline in this state by the United States environmental 7 protection agency, by granting a waiver or the adoption of 8 regulations. 9 (5) E-85 gasoline must be an agriculturally derived ethyl 10 alcohol that meets A.S.T.M. departmental standards based in 11 part or in whole on ASTM international specification D5798, 12 described as a fuel blend for use in ground vehicles with 13 automotive spark-ignition engines, or a successor A.S.T.M. ASTM 14 international specification, as established by rules adopted 15 by the department rule . 16 c. If the motor fuel is advertised for sale or sold as 17 biobutanol blended gasoline, the motor fuel must comply 18 with meet departmental standards which shall meet all of the 19 following requirements as follows : 20 (1) Biobutanol must be an agriculturally derived isobutyl 21 or n-butyl alcohol that meets A.S.T.M. ASTM international 22 specification D7862 for butanol for blending with gasoline for 23 use as automotive spark-ignition engine fuel, or a successor 24 A.S.T.M. ASTM international specification, as established by 25 rules adopted by the department rule . 26 (2) Gasoline blended with biobutanol must meet requirements 27 established by rules adopted departmental standards based 28 in part or in whole based on A.S.T.M. ASTM international 29 specification D4814 , or a successor ASTM international 30 specification, established by rule . 31 4. a. For motor fuel advertised for sale or sold as diesel 32 fuel by a dealer, the motor fuel must meet requirements for 33 that type of motor fuel and its additives established by the 34 United States environmental protection agency including as 35 -8- LSB 5280HW (1) 89 da/ns 8/ 24
H.F. 2581 provided under 42 U.S.C. §7545. 1 b. If the motor fuel is advertised for sale or sold as 2 biodiesel or biodiesel blended fuel, the motor fuel must comply 3 with meet departmental standards which shall comply with based 4 in part or in whole on specifications adopted by A.S.T.M. ASTM 5 international for biodiesel or biodiesel blended fuel, to 6 every extent applicable , as determined by rules adopted by the 7 department. the department, subject to the following: 8 (1) Biodiesel must conform to A.S.T.M. meet departmental 9 standards based in whole or in part on ASTM international 10 specification D6751 , or a successor A.S.T.M. ASTM international 11 specification , as established by rules adopted by the 12 department rule . The specification shall apply to biodiesel 13 before it leaves its place of manufacture. 14 (2) At least one five percent of biodiesel blended fuel by 15 volume must be biodiesel. 16 (3) The biodiesel may be blended with diesel fuel whose 17 sulfur, aromatic, lubricity, and cetane levels do not comply 18 with A.S.T.M. ASTM international specification D975 grades 19 1-D or 2-D, low sulfur 1-D or 2-D, or ultra-low sulfur grades 20 1-D or 2-D, provided that the finished biodiesel blended fuel 21 meets A.S.T.M. international specification D975 or a successor 22 A.S.T.M. international specification as established by rules 23 adopted by the department departmental standards as required in 24 subparagraph (1) . 25 (4) Biodiesel blended fuel classified as B-6 or higher 26 but not higher than B-20 must conform to A.S.T.M. meet 27 departmental standards based in whole or in part on ASTM 28 international specification D7467 , or a successor A.S.T.M. ASTM 29 international specification , as established by rules adopted 30 by the department rule . 31 5. Motor fuel shall be classified as follows: 32 a. (1) Ethanol shall be classified as E-100. 33 (2) Ethanol blended gasoline formulated with a percentage 34 of between sixty-eight and eighty-three percent by volume of 35 -9- LSB 5280HW (1) 89 da/ns 9/ 24
H.F. 2581 ethanol shall be classified as E-85. 1 (3) Ethanol blended gasoline , other than ethanol blended 2 gasoline classified as E-85, shall be designated classified as 3 E-xx where “xx” is the volume percent of ethanol in the ethanol 4 blended gasoline. 5 b. (1) Biobutanol shall be classified as Bu-100. 6 (2) Biobutanol blended gasoline shall be designated 7 classified as Bu-xx where “xx” is the volume percent of 8 biobutanol in the biobutanol blended gasoline. 9 c. (1) Biodiesel shall be classified as B-100. 10 (2) Biodiesel blended fuel shall be designated classified 11 as B-xx where “xx” is the volume percent of biodiesel. 12 6. Motor fuel shall not contain more than trace amounts of 13 MTBE, as provided in section 214A.18 . 14 Sec. 15. Section 214A.2A, subsection 1, Code 2022, is 15 amended to read as follows: 16 1. Fuel which is sold or is kept, offered, or exposed for 17 sale as kerosene shall be labeled as kerosene. The label shall 18 include the word “kerosene” or the designation “K1 kerosene”, 19 and shall indicate that the kerosene is in compliance with the 20 standard specification adopted by A.S.T.M. ASTM international 21 specification D3699 (1982) , or a successor ASTM international 22 specification, established by rules adopted by the department . 23 Sec. 16. Section 214A.2B, Code 2022, is amended to read as 24 follows: 25 214A.2B Laboratory for motor fuel and biofuels. 26 A laboratory for motor fuel and biofuels is established at 27 a community college which is engaged in biofuels testing on 28 July 1, 2007, and which testing includes but is not limited to 29 B-20 biodiesel fuel testing for motor trucks and the ability of 30 biofuels to meet A.S.T.M. ASTM international standards. The 31 laboratory shall conduct testing of motor fuel sold in this 32 state and biofuel which is blended in motor fuel in this state 33 to ensure that the motor fuel or biofuels meet the requirements 34 in section 214A.2 . 35 -10- LSB 5280HW (1) 89 da/ns 10/ 24
H.F. 2581 Sec. 17. Section 214A.3, Code 2022, is amended to read as 1 follows: 2 214A.3 Advertising. 3 1. For all motor fuel, a A person shall not knowingly do any 4 of the following: 5 a. 1. Advertise the for sale of any motor fuel which that 6 does not meet the standards provided in section 214A.2 . 7 b. 2. Falsely advertise for sale the quality , type, or kind 8 of any motor fuel or a component of motor fuel. 9 c. 3. Add a coloring matter to the motor fuel which 10 misleads a person who is purchasing the motor fuel about the 11 quality of the motor fuel. 12 4. Falsely advertise for sale the classification of a motor 13 fuel as provided in section 214A.2. 14 2. For a renewable fuel, all of the following apply: 15 a. A person shall not knowingly falsely advertise that a 16 motor fuel is a renewable fuel or is not a renewable fuel. 17 b. (1) Ethanol blended gasoline sold by a dealer shall 18 be designated according to its classification as provided in 19 section 214A.2 . However, a person advertising E-9 or E-10 20 gasoline may only designate it as ethanol blended gasoline. A 21 person advertising ethanol blended gasoline formulated with a 22 percentage of between seventy and eighty-five percent by volume 23 of ethanol shall designate it as E-85. A person shall not 24 knowingly falsely advertise ethanol blended gasoline by using 25 an inaccurate designation in violation of this subparagraph. 26 (2) A person shall not knowingly falsely advertise 27 biobutanol blended gasoline by using an inaccurate designation 28 as provided in section 214A.2 . 29 (3) A person shall not knowingly falsely advertise 30 biodiesel fuel by using an inaccurate designation as provided 31 in section 214A.2 . 32 Sec. 18. Section 214A.5, subsection 2, Code 2022, is amended 33 to read as follows: 34 2. A wholesale dealer selling ethanol blended gasoline, 35 -11- LSB 5280HW (1) 89 da/ns 11/ 24
H.F. 2581 biobutanol blended gasoline, or biodiesel blended fuel to 1 a purchaser shall provide the purchaser with a statement 2 indicating its designation classification as provided in 3 section 214A.2 . The statement may be on the sales slip 4 provided in this section or a similar document, including but 5 not limited to a bill of lading or invoice. 6 Sec. 19. Section 214A.16, Code 2022, is amended to read as 7 follows: 8 214A.16 Notice of renewable fuel —— decal. 9 1. a. If ethanol blended gasoline is sold from a motor 10 fuel pump, the motor fuel pump shall have affixed a decal 11 identifying the ethanol blended gasoline. 12 b. If the motor fuel pump dispenses ethanol blended gasoline 13 classified as E-11 to E-15 for use in gasoline-powered vehicles 14 not required to be flexible fuel vehicles, the motor fuel pump 15 shall have affixed a decal as prescribed by the United States 16 environmental protection agency. 17 c. 1. a. If the motor fuel pump dispenses ethanol blended 18 gasoline classified as higher than standard ethanol blended 19 gasoline pursuant to section 214A.2 is advertised for sale or 20 sold at a retail motor fuel site , the motor fuel dispenser 21 dispensing the ethanol blended gasoline shall be affixed with a 22 decal s hall contain language stating that the classification 23 of the ethanol blended gasoline is for use in flexible fuel 24 vehicles. 25 d. b. If biobutanol blended gasoline is advertised for sale 26 or sold from at a retail motor fuel site, the motor fuel pump, 27 the motor fuel pump dispenser dispensing the biobutanol blended 28 gasoline shall have be affixed with a decal identifying the 29 classification of biobutanol blended gasoline. 30 e. If biodiesel fuel is sold from a motor fuel pump, the 31 motor fuel pump shall have affixed a decal identifying the 32 biodiesel fuel as provided in 16 C.F.R. pt. 306 . 33 2. The design and location of the decal shall be prescribed 34 by rules adopted by the department. A decal identifying a 35 -12- LSB 5280HW (1) 89 da/ns 12/ 24
H.F. 2581 renewable fuel shall be consistent with standards adopted 1 pursuant to section 159A.6 . The department may approve an 2 application to place a decal in a special location on a pump 3 dispenser or container or use a decal with special lettering 4 or colors, if the decal appears clear and conspicuous to the 5 consumer. The application shall be made in writing pursuant to 6 procedures adopted by the department. 7 Sec. 20. Section 452A.12, subsection 2, Code 2022, is 8 amended to read as follows: 9 2. A person while transporting motor fuel or undyed special 10 fuel from a refinery or marine or pipeline terminal in this 11 state or from a point outside this state over the highways 12 of this state in service other than that under subsection 13 1 shall carry in the vehicle a loading invoice showing the 14 name and address of the seller or consignor, the date and 15 place of loading, and the kind and quantity of motor fuel or 16 special fuel loaded, together with invoices showing the kind 17 and quantity of each delivery and the name and address of each 18 purchaser or consignee. An invoice carried pursuant to this 19 subsection for ethanol blended gasoline or biodiesel blended 20 fuel shall state its designation classification as provided in 21 section 214A.2 . 22 Sec. 21. Section 455G.31, subsection 1, paragraph b, Code 23 2022, is amended to read as follows: 24 b. Ethanol blended gasoline shall be designated classified 25 in the same manner as provided in section 214A.2 . 26 DIVISION IV 27 IOWA SHEEP AND WOOL PROMOTION BOARD 28 Sec. 22. Section 182.5, Code 2022, is amended to read as 29 follows: 30 182.5 Composition of board. 31 The Iowa sheep and wool promotion board established 32 under this chapter pursuant to section 182.4 shall be 33 composed of nine producers , one from each district . The 34 dean of the college of agriculture and life sciences of Iowa 35 -13- LSB 5280HW (1) 89 da/ns 13/ 24
H.F. 2581 state university of science and technology or the dean’s 1 representative and the secretary or the secretary’s designee 2 shall serve as ex officio nonvoting members of the board. The 3 board shall annually elect a chairperson from its membership. 4 Sec. 23. Section 182.7, Code 2022, is amended to read as 5 follows: 6 182.7 Notice of election for directors membership positions . 7 1. Notice of the initial election for directors of 8 membership positions on the board shall be given by the 9 secretary by publication in a newspaper of general circulation 10 in the state at least five days prior to the date of the 11 election and in any other reasonable manner as determined 12 by the secretary. The notice shall set forth the period of 13 time for voting, voting places, and other information as the 14 secretary deems necessary. 15 2. Notice of a subsequent elections election for the a 16 membership position for a district on the board shall be 17 given by the board by publication in a newspaper of general 18 circulation in the district state and in any other reasonable 19 manner as determined established by the board and . The notice 20 shall set forth the period of time for voting, voting places, 21 and other information as the board deems necessary. 22 Sec. 24. Section 182.8, Code 2022, is amended to read as 23 follows: 24 182.8 Terms. 25 The term of office for members of the board shall be 26 three years and no member shall serve more than two complete 27 consecutive terms . The producers members on the initial board 28 shall determine their terms by lot, so that three producers 29 members shall serve a one-year term, three producers members 30 shall serve a two-year term, and three producers members shall 31 serve a three-year term. A member elected to the initial board 32 shall not serve more than two complete consecutive terms. A 33 member subsequently elected to the board shall not serve more 34 than a certain number of consecutive terms if, and as may be, 35 -14- LSB 5280HW (1) 89 da/ns 14/ 24
H.F. 2581 established by the board. 1 Sec. 25. Section 182.9, Code 2022, is amended to read as 2 follows: 3 182.9 Subsequent membership —— nominations —— election. 4 After the appointment of the initial board, the board shall 5 administer subsequent elections for members of the board with 6 the assistance of the secretary. Before the expiration of a 7 member’s term of office, the board shall appoint a nominating 8 committee for the district represented by the member. The 9 nominating committee shall consist of five producers who 10 are residents of the district from which a member must be 11 elected. The nominating committee shall nominate two resident 12 any number of producers as candidates for the membership 13 position for which an election is to be held. The board shall 14 nominate candidates based on criteria established by the board. 15 Additional candidates may be nominated by a written petition 16 of signed by twenty-five resident producers. The board shall 17 provide by rule and shall publish procedures governing the time 18 and place of filing the nominations The petition shall be in a 19 form and delivered to the board as required by the board . 20 Sec. 26. Section 182.10, Code 2022, is amended to read as 21 follows: 22 182.10 Vacancies. 23 The board shall by appointment fill an unexpired term if 24 a vacancy occurs on the board. The board shall select an 25 appointee shall be a resident producer in the district having a 26 vacancy based on the criteria established by the board . 27 DIVISION V 28 LOCAL FOOD AND FARM PROGRAM 29 Sec. 27. Section 267A.2, Code 2022, is amended by adding the 30 following new subsection: 31 NEW SUBSECTION . 5. “Secretary” means the secretary of 32 agriculture. 33 Sec. 28. Section 267A.3, subsections 2 and 3, Code 2022, 34 are amended by striking the subsections and inserting in lieu 35 -15- LSB 5280HW (1) 89 da/ns 15/ 24
H.F. 2581 thereof the following: 1 2. The council shall be composed of the following voting 2 members: 3 a. The secretary or the secretary’s designee. 4 b. The following persons appointed by the secretary: 5 (1) Four farmers each of whom shall produce an agricultural 6 commodity in this state used to prepare or process a local 7 food. A farmer must be actively engaged in the on-farm 8 preparation or processing of an agricultural commodity into 9 local food. The farmer must offer the local food for sale in 10 this state directly to consumers. The secretary must appoint 11 farmers actively engaged in producing each of the following: 12 (a) Livestock used to produce meat products. 13 (b) Poultry used to produce poultry products. 14 (c) Dairy animals used to produce milk and dairy products. 15 (d) Fruit or vegetables to be washed or to be produced, cut, 16 canned, or otherwise processed into products. 17 (2) Two managers of firms each of whom shall represent 18 different types of processors of agricultural commodities doing 19 business in this state. A manager shall be actively engaged 20 in the purchase of agricultural commodities from farmers, the 21 preparation or processing of those commodities into local food, 22 and the resale of the local food to distributors on a wholesale 23 basis in this state. The secretary must appoint managers 24 actively engaged in the sale of the following: 25 (a) Meat products, poultry products, or milk or dairy 26 products. 27 (b) Fruits or vegetables, fruit products, or vegetable 28 products. 29 (3) One manager of a wholesale distributor of local 30 food doing business in this state. The manager must be 31 actively engaged in the purchase of local food prepared or 32 processed from agricultural commodities by processors, and 33 in the marketing of local food on a wholesale basis to food 34 establishments in this state. 35 -16- LSB 5280HW (1) 89 da/ns 16/ 24
H.F. 2581 (4) Three managers of food establishments doing business 1 in this state. Each manager must be actively engaged in the 2 purchase of local food prepared or processed from agricultural 3 commodities produced in this state, the purchase of the 4 local food from wholesale distributors, and the marketing or 5 distribution of the local food to consumers in this state. 6 The secretary must appoint managers actively engaged in the 7 operation of the following: 8 (a) A grocery store. 9 (b) A food service provider distributing food to any of the 10 following: 11 (i) Students attending a public or private school from 12 kindergarten through grade twelve. 13 (ii) Children attending a center for early education. 14 (c) A food service provider distributing local food to an 15 institution not attended by children. 16 (5) Two heads of local or regional community food 17 organizations doing business in this state. Each head must be 18 actively engaged in promoting the well-being of Iowans through 19 the distribution of local food prepared or processed from 20 agricultural commodities produced in this state. 21 (6) An attorney practicing in areas of food and agricultural 22 law. 23 (7) An employee of a government entity who specializes in 24 nutrition programs. 25 3. The secretary may invite interested organizations to 26 submit nominations of candidates eligible to be appointed to 27 the council. A designee of the secretary or a member appointed 28 by the secretary serves at the pleasure of the secretary. 29 Sec. 29. Section 267A.6, Code 2022, is amended to read as 30 follows: 31 267A.6 Local food and farm program. 32 1. The local food and farm program coordinator, with advice 33 from the local food and farm program council, shall develop and 34 administer a local food and farm program necessary to carry out 35 -17- LSB 5280HW (1) 89 da/ns 17/ 24
H.F. 2581 the purpose and goals of this chapter as provided in section 1 267A.1 , including but not limited to by improving any of the 2 following: . 3 1. 2. In administering the program, the coordinator may 4 sponsor and fund projects that do any of the following: 5 a. Communication Improve communication and cooperation 6 between and among farmers, food entrepreneurs, and consumers. 7 2. b. Coordination Improve communication between and 8 among government agencies, public universities and community 9 colleges, organizations, and private-sector firms working on 10 local food and farm-related issues. 11 c. Demonstrate the value of processing, distributing, and 12 marketing local foods. A demonstration project must be capable 13 of being replicated on a statewide basis. 14 EXPLANATION 15 The inclusion of this explanation does not constitute agreement with 16 the explanation’s substance by the members of the general assembly. 17 GENERAL. This bill provides for programs and regulations 18 administered and enforced by the department of agriculture and 19 land stewardship (DALS). 20 CHOOSE IOWA PROMOTIONAL PROGRAM. The bill requires DALS 21 to establish and administer a choose Iowa promotional program 22 (program) in order to provide consumers a choice in purchasing 23 a food item originating as an agricultural commodity produced 24 on an Iowa farm (amended Code section 159.20). This includes 25 either (1) an agricultural commodity produced on an Iowa farm 26 or (2) a product processed in this state, if the product is 27 an agricultural commodity that has been prepared in Iowa, or 28 any of the product’s ingredients are agricultural commodities 29 produced on an Iowa farm (new Code section 159.29). DALS is 30 provided discretion to further define what constitutes an Iowa 31 farm and describe how an agricultural commodity originates on 32 an Iowa farm. 33 CHOOSE IOWA LOGO. As part of the program, DALS may establish 34 a choose Iowa logo (logo) to identify a food item originating 35 -18- LSB 5280HW (1) 89 da/ns 18/ 24
H.F. 2581 as an agricultural commodity produced on an Iowa farm. DALS 1 may register the logo as a mark with the secretary of state. 2 DALS may also register the logo as a trademark with the United 3 States patent and trademark office or as a copyright with the 4 United States copyright office. The use of the logo does not 5 create an express or implied warranty; involve state or federal 6 labeling requirements; or indicate the grade, specification, 7 standard, or value of a food item (new Code section 159.30). 8 CHOOSE IOWA PROMOTIONAL PROGRAM —— LICENSING AGREEMENTS AND 9 FEES. DALS may enter into a licensing agreement (agreement) 10 with a person who applies to use the logo. An agreement cannot 11 be for more than five years. DALS must evaluate and approve or 12 disapprove applications based on criteria established by rule. 13 DALS may also establish application and license fees by rule. 14 CHOOSE IOWA FUND. A choose Iowa fund (fund) is established 15 in the state treasury under DALS’ management and control. The 16 fund includes moneys that DALS collects in fees or otherwise 17 receives, including by appropriation or gift. DALS must use 18 the moneys exclusively to carry out the provisions of the bill. 19 PESTICIDE REGULATION. The bill amends Code chapter 206, 20 “the Pesticide Act of Iowa” (Code section 206.1) which in part 21 regulates commercial and private applicators. Before selling 22 or offering for sale any pesticide for use in this state, a 23 person must register each brand and grade of that pesticide 24 with DALS. Registration fees are based on a percentage 25 of gross sales of that brand or grade in this state with a 26 minimum fee of $250 and a maximum fee of $3,000 (Code section 27 206.12(3)). The bill replaces that method of calculating the 28 registration fee with a flat fee of $300. Generally, a person 29 in business as a commercial applicator (applying pesticides to 30 another person’s land) must be certified and licensed (Code 31 sections 206.5 and 206.6). A private applicator (e.g., a 32 farmer) applying a restricted use pesticide must be certified 33 (Code section 206.5). During the last regular session, the 34 general assembly enacted SF 482 (2021 Acts, chapter 28) which 35 -19- LSB 5280HW (1) 89 da/ns 19/ 24
H.F. 2581 in part provides that a private applicator is subject to the 1 same civil penalty as a commercial applicator for violating a 2 provision of the Code chapter (amended Code section 206.19). 3 The Act provided that the amount for each violation committed 4 by a commercial applicator or private applicator cannot exceed 5 $500 for each violation. The bill amends the provision by 6 changing the term from “violation” back to “offense”. 7 MOTOR FUEL REGULATION —— BACKGROUND. DALS regulates persons 8 advertising for sale or selling motor fuel on a wholesale 9 or retail basis (Code chapter 214A) as well as motor fuel 10 infrastructure used to store and dispense motor fuel at a 11 retail motor fuel site owned or operated by a retail dealer 12 and, in particular, metered motor fuel pumps located at a 13 retail motor fuel site (Code chapter 214). Three types of 14 motor fuel are regulated by DALS, including gasoline and diesel 15 fuel (Code section 214A.2), and kerosene (Code sections 214A.2 16 and 214A.2A) as well as their respective components. A biofuel 17 is a component used to formulate a motor fuel and is closely 18 associated with formulations of both gasoline and diesel fuel. 19 A renewable fuel is a term which refers to either a biofuel 20 or a motor fuel blended with a biofuel. A biofuel includes 21 ethanol which is grain alcohol (e.g., derived from corn) used 22 to produce ethanol blended gasoline, biobutanol which is 23 isobutyl or n-butyl alcohol (derived from the same feedstocks 24 as ethanol but includes corn stover) used to produce biobutanol 25 blended gasoline, and biodiesel which is often a vegetable oil 26 (e.g., derived from soybeans) used to produce biodiesel blended 27 fuel. DALS establishes standards for these motor fuels and 28 their components based on two outside sources of authority: 29 (1) specifications recommended by ASTM international, a 30 private globally recognized organization, and (2) requirements 31 adopted by the United States environmental protection agency 32 (EPA). The EPA and the United States federal trade commission 33 (FTC) also regulate the labeling of motor fuel dispensers by 34 requiring information about the motor fuel to be dispensed, 35 -20- LSB 5280HW (1) 89 da/ns 20/ 24
H.F. 2581 such as the octane level of gasoline and the percentage content 1 of any biofuel component (42 U.S.C. §7545 and 40 C.F.R. pt. 2 1090, 15 U.S.C. §2801 et seq., 42 U.S.C. §17021, 16 C.F.R. 3 pt. 306, and 40 C.F.R. §80.1501(a)). DALS’ regulation of a 4 renewable fuel depends upon its classification expressed as an 5 abbreviation identifying the renewable fuel according to type 6 followed by a number representing the biofuel percentage by 7 volume usually measured by gallon. The designation “xx” is 8 used as a stand-in designation for the actual percentage of a 9 biofuel percentage threshold (amended Code section 214A.2(5)) 10 depending upon the Code provision (e.g., the E-15 plus gasoline 11 promotion tax credit in Code section 422.11Y). One special 12 exception is E-85 gasoline which is based on a percentage range 13 of between 70 and 85 percent by volume of ethanol. 14 MOTOR FUEL REGULATION —— REVISION OF TERMS. The bill revises 15 certain terms, including by changing “A.S.T.M. international” 16 to “ASTM international” and defining “biodiesel” by referring 17 to its production method (amended Code section 214A.1). 18 The bill provides for the consistent use of certain terms, 19 including “specifications” which refers to recommendations 20 adopted by ASTM international, “requirements” which refers to 21 EPA regulations, and “standards” which refers to departmental 22 rules (amended Code section 214A.2). The bill also provides 23 for the consistent use of the term “standard” which is 24 occasionally referred to as “designation” (amended Code 25 sections 214A.2A, 214A.3, 214A.5, 452A.12, and 455G.31). The 26 bill provides that a label is to be placed on a “motor fuel 27 dispenser” rather than a “motor fuel pump” (amended Code 28 section 214A.16). 29 MOTOR FUEL REGULATION —— DEPARTMENTAL STANDARDS. The 30 bill provides that the minimum octane rating for premium 31 grade gasoline is changed from 90 to 91 (amended Code 32 section 214A.2(2)). For all three types of motor fuel, 33 departmental standards may be based in part or in whole on 34 ASTM international specifications, and may include successor 35 -21- LSB 5280HW (1) 89 da/ns 21/ 24
H.F. 2581 specifications. The bill eliminates a requirement recognizing 1 that EPA must grant a seasonal waiver from its requirements 2 before a retail dealer may advertise for sale or sell ethanol 3 blended gasoline (amended Code section 214A.2(3)). The 4 threshold for biodiesel blended fuel is increased from B-1 to 5 B-5 (amended Code section 214A.2(4)). 6 MOTOR FUEL REGULATION —— CLASSIFICATIONS. The bill 7 adds subclassifications for biofuels including for ethanol 8 classified as E-100, biobutanol classified as Bu-100, and 9 biodiesel classified as B-100. The bill also recognizes E-85 10 according to its revised percentage range, which is 68 to 83 11 percent. 12 MOTOR FUEL REGULATION —— ADVERTISING. The bill revises 13 a provision which prohibits a person from knowingly falsely 14 advertising for sale motor fuel (amended Code section 214A.3). 15 The bill replaces a provision that prohibits a person from 16 falsely advertising that a motor fuel is or is not a renewable 17 fuel with a provision that prohibits a person from falsely 18 advertising the classification of a renewable fuel. The bill 19 also eliminates a requirement that a motor fuel pump (motor 20 fuel dispenser) be affixed with a label that identifies the 21 dispensed gasoline as ethanol blended gasoline (e.g., E-10), 22 that identifies ethanol blended gasoline classified from E-11 23 to E-15, or that identifies dispensed diesel fuel as biodiesel 24 blended fuel. The bill retains a state requirement that a 25 motor fuel dispenser identify gasoline classified as higher 26 than E-15 (e.g., E-85) or any classification of biobutanol 27 blended gasoline. The bill does not affect federal labeling 28 requirements. 29 MOTOR FUEL REGULATION —— APPLICABLE PENALTIES. A person 30 who violates a provision of Code chapter 214A is guilty of 31 a serious misdemeanor. A serious misdemeanor is punishable 32 by confinement for no more than one year and a fine of at 33 least $430 but not more than $2,560. However, the state 34 may initiative a substitute civil enforcement action as an 35 -22- LSB 5280HW (1) 89 da/ns 22/ 24
H.F. 2581 administrative action by DALS or as a judicial proceeding by 1 the attorney general upon referral by DALS. The civil penalty 2 must be for at least $100 but not more than $1,000 for each 3 violation and each day of a continuing violation constitutes a 4 separate offense (Code section 214A.11). 5 IOWA SHEEP AND WOOL PROMOTION BOARD. The bill amends 6 provisions establishing the Iowa sheep and wool promotion 7 board (board) which includes members residing in each official 8 crop reporting district (district) as published by the United 9 States department of agriculture (Code sections 182.1, 182.7, 10 182.9, and 182.10). A board member serves for a term of three 11 years (Code section 182.8). The bill eliminates requirements 12 relating to members residing in districts and allows the board 13 to nominate candidates and establish term limits. 14 LOCAL FOOD AND FARM PROGRAM. The local food and farm 15 program (program) is established to improve communication and 16 cooperation between and among farmers, food entrepreneurs, 17 and consumers and coordination among government agencies, 18 public universities and community colleges, organizations, and 19 private-sector firms working on local food and farm-related 20 issues (Code section 267A.1). The program is administered 21 by a local food and farm program coordinator (Code section 22 267A.4) who acts in consultation with a local food and farm 23 program council (Code section 267A.3). The bill replaces the 24 council’s membership. The current membership includes the 25 secretary of agriculture (secretary) or a designee; a member 26 appointed by the Iowa farmers union and a member appointed 27 by the Iowa farmers market association; and three members 28 appointed by the governor, including a person associated with a 29 resource conservation and development office, a person actively 30 engaged in the production, processing, and distribution of food 31 products; and a person from the regional food systems working 32 group (Code section 267A.3). 33 Under the bill, the secretary or secretary’s designee 34 remains on the council but other members are replaced by 14 35 -23- LSB 5280HW (1) 89 da/ns 23/ 24
H.F. 2581 persons appointed by the secretary. The membership must 1 include four farmers engaged in producing agricultural 2 commodities (livestock, poultry, dairy, vegetables, and 3 fruits). The farmers must be engaged in the on-farm processing 4 of the commodities into food products for retail sale. The 5 membership must also include two managers of processing firms 6 engaged in processing agricultural commodities into food 7 products for sale to distributors on a wholesale basis, a 8 manager of a distributor involved in the sale of food products 9 to food establishments on a wholesale basis, three managers of 10 food establishments distributing food products to consumers, 11 two heads of local or regional community organizations 12 interested in providing food services to individuals, an 13 attorney practicing agricultural or food law, and an employee 14 of a government entity interested in nutrition programs. 15 Finally, the bill expands the program by allowing the 16 coordinator in consultation with the council to fund projects 17 that demonstrate the value of processing, distributing, and 18 marketing local foods. 19 -24- LSB 5280HW (1) 89 da/ns 24/ 24