HF 2581 (LSB 5280HW (1) 89)

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 and enforced by the department of agriculture and land stewardship, providing fees, providing penalties, and making penalties applicable.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

DIVISION I
CHOOSE IOWA PROMOTIONAL PROGRAM

    Section 1.  Section 159.20, Code 2022, is amended by adding the following new subsection:
   NEW SUBSECTION.  1A.  The department shall establish and administer a choose Iowa promotional program as provided in part 2 of this subchapter, in order to provide consumers a choice in purchasing food items that originate as an agricultural commodity produced on Iowa farms.
    Sec. 2.  NEW SECTION.  159.26  Definitions.
   As used in this part:
   1.  “Food item” means any of the following:
   a.  A perishable item derived from an agricultural commodity, or processed from an agricultural commodity, that is fit for human consumption.
   b.  Honey produced from bees in a managed beehive.
   2.  “Iowa farm” means land in this state used to produce an agricultural commodity.
   3.  “Process” means to prepare a food item in a manner that allows it to be fit for human consumption.
   4.  “Program” means the choose Iowa promotional program established in section 159.29.
    Sec. 3.  NEW SECTION.  159.28  Administration.
   The department shall administer the provisions of this part, including by adopting rules pursuant to chapter 17A as it determines are necessary or desirable.
    Sec. 4.  NEW SECTION.  159.29  Choose Iowa promotional program.
   1.  The department shall establish and administer a choose Iowa promotional program to advertise for sale on a retail basis a food item that originates as an agricultural commodity produced on an Iowa farm, and that may include any of the following:
   a.  An agricultural commodity, except that it may be prepared for sale by washing or packaging in this state.
   b.  A product, if it is processed in this state and any of its ingredients originate as an agricultural commodity produced on an Iowa farm.
   2.  a.  The department may adopt rules further defining an Iowa farm and describing how an agricultural commodity originates on an Iowa farm.
   b.  The department may adopt rules providing for the acceptable use of ingredients originating from agricultural commodities not produced on Iowa farms. In adopting the rules, the department may consider whether the ingredient is an incidental additive or other component that the department determines is insignificant.
    Sec. 5.  NEW SECTION.  159.30  Choose Iowa logo.
   1.  As part of the program, the department may establish a choose Iowa logo to identify a food item originating as an agricultural commodity produced on an Iowa farm.
   2.  The department may register the choose Iowa logo as a mark with the secretary of state under chapter 548. If allowed under federal law, the department may also register the logo as a trademark with the United States patent and trademark office or as a copyright with the United States copyright office.
   3.  This section does not require the department to incorporate the name “choose Iowa” as part of a mark, trademark, or copyright, if such name is already protected by state or federal law.
   4.  If the department registers a mark with the secretary of state, registers a trademark with the United States patent and trademark office, or registers a copyright with the United States copyright office under this section, the state of Iowa shall be named as the owner of the mark, trademark, or copyright.
   5.  The use of a choose Iowa logo does not do any of the following:
   a.  Provide an express or implied guarantee or warranty concerning the safety, fitness, merchantability, or use of a food item.
   b.  Supersede, revise, or replace a state or federal labeling requirement, including but not limited to a provision in the federal Fair Packaging and Labeling Act, 15 U.S.C. §1451 et seq.
   c.  Indicate the grade, specification, standard, or value of any food item.
    Sec. 6.  NEW SECTION.  159.31  Choose Iowa licensing agreement —— fees.
   1.  A person may apply to the department to participate in the choose Iowa promotional program according to procedures established by rules adopted by the department. The department shall evaluate and approve or disapprove applications based on criteria established by rules adopted by the department. The department may disapprove an application if the department determines the applicant’s use of the choose Iowa logo would be associated with the consumption of an adulterated or illegal food item.
   2.  The department may enter into a licensing agreement with a person participating in the program. The participating person may use the choose Iowa logo to advertise a food item originating as an agricultural commodity produced on an Iowa farm, subject to terms and conditions required by rules adopted by the department. A licensing agreement shall not be for more than one year.
   3.  The department shall establish application and license fees by rules adopted by the department.
    Sec. 7.  NEW SECTION.  159.31A  Choose Iowa fund.
   1.  A choose Iowa fund is established in the state treasury under the management and control of the department.
   2.  The fund shall include moneys collected as fees by the department as provided in section 159.31, moneys appropriated by the general assembly, and other moneys available to and obtained or accepted by the department, including moneys from public or private sources.
   3.  Moneys in the fund are appropriated to the department and shall be used exclusively to carry out the provisions of this part as determined and directed by the department, and shall not require further special authorization by the general assembly.
   4.  a.  Notwithstanding section 12C.7, interest or earnings on moneys in the fund shall be credited to the fund.
   b.  Notwithstanding section 8.33, moneys in the fund that remain unencumbered or unobligated at the end of a fiscal year shall not revert.
    Sec. 8.  DIRECTIONS TO CODE EDITOR —— TRANSFER.
   1.  The Code editor is directed to make the following transfer:
   Section 159.27 to section 159.25.
   2.  The Code editor shall correct internal references in the Code and in any enacted legislation as necessary due to the enactment of this section.
    Sec. 9.  DIRECTIONS TO CODE EDITOR —— PARTS.  The Code editor is directed to divide the provisions in chapter 159, subchapter II, as amended, enacted, or transferred in this division of this Act, into parts as follows:
   1.  Part 1, including sections 159.20 through 159.25.
   2.  Part 2, including sections 159.26 through 159.31A.
DIVISION II
REGULATION OF PESTICIDES

    Sec. 10.  Section 206.12, subsection 3, Code 2022, is amended to read as follows:
   3.  The registrant, before selling or offering for sale any pesticide for use in this state, shall register each brand and grade of such pesticide with the secretary upon forms furnished by the secretary, and the secretary shall set the registration fee annually at one-fifth of one percent of gross sales within this state with a minimum fee of two hundred fifty dollars and a maximum fee of three thousand hundred dollars for each and every brand and grade to be offered for sale in this state except as otherwise provided. The annual registration fee for products with gross annual sales in this state of less than one million five hundred thousand dollars shall be the greater of two hundred fifty dollars or one-fifth of one percent of the gross annual sales as established by affidavit of the registrant. The secretary shall adopt by rule exemptions to the minimum fee. Fifty dollars of each fee collected shall be deposited in the general fund of the state, shall be subject to the requirements of section 8.60, and shall be used only for the purpose of enforcing the provisions of this chapter and the remainder of each fee collected shall be placed in the agriculture management account of the groundwater protection fund.
    Sec. 11.  Section 206.19, subsection 5, paragraph b, Code 2022, is amended to read as follows:
   b.  The amount of the civil penalty that may be assessed for each violation committed by a commercial applicator or private applicator shall not exceed five hundred dollars for each offense.
DIVISION III
REGULATION OF MOTOR FUELS

    Sec. 12.  Section 214A.1, subsections 2, 5, and 13, Code 2022, are amended to read as follows:
   2.  “A.S.T.M. ASTM international” means the American society for testing and materials international.
   5.  “Biodiesel” means a renewable fuel comprised of mono-alkyl esters of long-chain fatty acids derived from vegetable oils or animal fats, which is manufactured by the use of a transesterification reaction, and which meets the standards provided in section 214A.2.
   13.  “E-85 gasoline” or “E-85” means ethanol blended gasoline formulated with a percentage of between seventy sixty-eight and eighty-five eighty-three percent by volume of ethanol, if the formulation excludes a denaturant, and which meets the standards provided in section 214A.2.
    Sec. 13.  NEW SECTION.  214A.1A  Administration and enforcement.
   This chapter shall be administered and enforced by the department which may adopt rules under chapter 17A to carry out the provisions of this chapter.
    Sec. 14.  Section 214A.2, Code 2022, is amended to read as follows:
   214A.2  Tests and standards Standards and classifications.
   1.  a.  The department shall adopt rules pursuant to chapter 17A for carrying out this chapter. The rules may include but are not limited to specifications establishing departmental standards relating to motor fuel, including but not limited to renewable fuel such as ethanol blended gasoline, biobutanol blended gasoline, biodiesel, biodiesel blended fuel, fuels and motor fuel components such as an oxygenate.
   b.  In the interest of uniformity, the department shall adopt by reference other in part or in whole, as some of its departmental standards described in paragraph “a”, applicable specifications relating to tests and standards for motor fuel, including renewable fuel and motor fuel components, adopted by ASTM international and applicable requirements established by the United States environmental protection agency and A.S.T.M. international.
   2.  Octane number shall conform to the average of values obtained from the A.S.T.M. ASTM international D2699 research method and the A.S.T.M. ASTM international D2700 motor method.
   a.  Octane number for regular grade unleaded gasoline shall follow the specifications of A.S.T.M. ASTM international but shall not be less than eighty-seven.
   b.  Octane number for premium grade unleaded gasoline shall follow the specifications of A.S.T.M. ASTM international but shall not be less than ninety ninety-one.
   3.  a.  For motor fuel advertised for sale or sold as gasoline by a dealer, the motor fuel must meet requirements for that type of motor fuel and its additives established by the United States environmental protection agency including as provided under 42 U.S.C. §7545.
   b.  If the motor fuel is advertised for sale or sold as ethanol blended gasoline, the motor fuel must comply with meet departmental standards which shall meet all of the following requirements including as follows:
   (1)  Ethanol must be an agriculturally derived ethyl alcohol that meets A.S.T.M. departmental standards based in part or in whole on ASTM international specification D4806 for denatured fuel ethanol for blending with gasoline for use as automotive spark-ignition engine fuel, or a successor A.S.T.M. ASTM international specification, as established by rules adopted by the department rule.
   (2)  Gasoline blended with ethanol must meet requirements established by rules adopted departmental standards based in part or in whole based on A.S.T.M. ASTM international specification D4814, or a successor ASTM international specification, established by rule.
   (3)  (a)  For ethanol blended gasoline, at least nine percent by volume must be fuel grade ethanol. In addition, the following applies:
   (a)  (b)  For the period beginning on September 16 and ending on May 31 of each year, the state grants a waiver of one pound per square inch from the A.S.T.M. ASTM international D4814 specification for Reid vapor pressure requirement, or a successor ASTM international specification, established by rule.
   (b)  For the period beginning on June 1 and ending on September 15 of each year the United States environmental protection agency must grant a one pound per square inch waiver for ethanol blended conventional gasoline with at least nine but not more than ten percent by volume of ethanol pursuant to 
40 C.F.R. §80.27
.
   (4)  For standard ethanol blended gasoline, it must be ethanol blended gasoline classified as any of the following:
   (a)  From E-9 up to but not higher than E-15, if the ethanol blended gasoline meets the departmental standards for that classification as otherwise provided in this paragraph “b”.
   (b)  Higher than E-15 but not E-85 gasoline, if the classification is authorized by the department pursuant to approval for the use of that classification of ethanol blended gasoline in this state by the United States environmental protection agency, by granting a waiver or the adoption of regulations.
   (5)  E-85 gasoline must be an agriculturally derived ethyl alcohol that meets A.S.T.M. departmental standards based in part or in whole on ASTM international specification D5798, described as a fuel blend for use in ground vehicles with automotive spark-ignition engines, or a successor A.S.T.M. ASTM international specification, as established by rules adopted by the department rule.
   c.  If the motor fuel is advertised for sale or sold as biobutanol blended gasoline, the motor fuel must comply with meet departmental standards which shall meet all of the following requirements as follows:
   (1)  Biobutanol must be an agriculturally derived isobutyl or n-butyl alcohol that meets A.S.T.M. ASTM international specification D7862 for butanol for blending with gasoline for use as automotive spark-ignition engine fuel, or a successor A.S.T.M. ASTM international specification, as established by rules adopted by the department rule.
   (2)  Gasoline blended with biobutanol must meet requirements established by rules adopted departmental standards based in part or in whole based on A.S.T.M. ASTM international specification D4814, or a successor ASTM international specification, established by rule.
   4.  a.  For motor fuel advertised for sale or sold as diesel fuel by a dealer, the motor fuel must meet requirements for that type of motor fuel and its additives established by the United States environmental protection agency including as provided under 42 U.S.C. §7545.
   b.  If the motor fuel is advertised for sale or sold as biodiesel or biodiesel blended fuel, the motor fuel must comply with meet departmental standards which shall comply with based in part or in whole on specifications adopted by A.S.T.M. ASTM international for biodiesel or biodiesel blended fuel, to every extent applicable, as determined by rules adopted by the department. the department, subject to the following:
   (1)  Biodiesel must conform to A.S.T.M. meet departmental standards based in whole or in part on ASTM international specification D6751, or a successor A.S.T.M. ASTM international specification, as established by rules adopted by the department rule. The specification shall apply to biodiesel before it leaves its place of manufacture.
   (2)  At least one five percent of biodiesel blended fuel by volume must be biodiesel.
   (3)  The biodiesel may be blended with diesel fuel whose sulfur, aromatic, lubricity, and cetane levels do not comply with A.S.T.M. ASTM international specification D975 grades 1-D or 2-D, low sulfur 1-D or 2-D, or ultra-low sulfur grades 1-D or 2-D, provided that the finished biodiesel blended fuel meets A.S.T.M. international specification D975 or a successor A.S.T.M. international specification as established by rules adopted by the department departmental standards as required in subparagraph (1).
   (4)  Biodiesel blended fuel classified as B-6 or higher but not higher than B-20 must conform to A.S.T.M. meet departmental standards based in whole or in part on ASTM international specification D7467, or a successor A.S.T.M. ASTM international specification, as established by rules adopted by the department rule.
   5.  Motor fuel shall be classified as follows:
   a.  (1)  Ethanol shall be classified as E-100.
   (2)  Ethanol blended gasoline formulated with a percentage of between sixty-eight and eighty-three percent by volume of ethanol shall be classified as E-85.
   (3)  Ethanol blended gasoline, other than ethanol blended gasoline classified as E-85, shall be designated classified as E-xx where “xx” is the volume percent of ethanol in the ethanol blended gasoline.
   b.  (1)  Biobutanol shall be classified as Bu-100.
   (2)  Biobutanol blended gasoline shall be designated classified as Bu-xx where “xx” is the volume percent of biobutanol in the biobutanol blended gasoline.
   c.  (1)  Biodiesel shall be classified as B-100.
   (2)  Biodiesel blended fuel shall be designated classified as B-xx where “xx” is the volume percent of biodiesel.
   6.  Motor fuel shall not contain more than trace amounts of MTBE, as provided in section 214A.18.
    Sec. 15.  Section 214A.2A, subsection 1, Code 2022, is amended to read as follows:
   1.  Fuel which is sold or is kept, offered, or exposed for sale as kerosene shall be labeled as kerosene. The label shall include the word “kerosene” or the designation “K1 kerosene”, and shall indicate that the kerosene is in compliance with the standard specification adopted by A.S.T.M. ASTM international specification D3699 (1982), or a successor ASTM international specification, established by rules adopted by the department.
    Sec. 16.  Section 214A.2B, Code 2022, is amended to read as follows:
   214A.2B  Laboratory for motor fuel and biofuels.
   A laboratory for motor fuel and biofuels is established at a community college which is engaged in biofuels testing on July 1, 2007, and which testing includes but is not limited to B-20 biodiesel fuel testing for motor trucks and the ability of biofuels to meet A.S.T.M. ASTM international standards. The laboratory shall conduct testing of motor fuel sold in this state and biofuel which is blended in motor fuel in this state to ensure that the motor fuel or biofuels meet the requirements in section 214A.2.
    Sec. 17.  Section 214A.3, Code 2022, is amended to read as follows:
   214A.3  Advertising.
   1.  For all motor fuel, a A person shall not knowingly do any of the following:
   a.  1.  Advertise the for sale of any motor fuel which that does not meet the standards provided in section 214A.2.
   b.  2.  Falsely advertise for sale the quality, type, or kind of any motor fuel or a component of motor fuel.
   c.  3.  Add a coloring matter to the motor fuel which misleads a person who is purchasing the motor fuel about the quality of the motor fuel.
   4.  Falsely advertise for sale the classification of a motor fuel as provided in section 214A.2.
   2.  For a renewable fuel, all of the following apply:
   a.  A person shall not knowingly falsely advertise that a motor fuel is a renewable fuel or is not a renewable fuel.
   b.  (1)  Ethanol blended gasoline sold by a dealer shall be designated according to its classification as provided in section 214A.2. However, a person advertising E-9 or E-10 gasoline may only designate it as ethanol blended gasoline. A person advertising ethanol blended gasoline formulated with a percentage of between seventy and eighty-five percent by volume of ethanol shall designate it as E-85. A person shall not knowingly falsely advertise ethanol blended gasoline by using an inaccurate designation in violation of this subparagraph.
   (2)  A person shall not knowingly falsely advertise biobutanol blended gasoline by using an inaccurate designation as provided in section 214A.2.
   (3)  A person shall not knowingly falsely advertise biodiesel fuel by using an inaccurate designation as provided in section 214A.2.
    Sec. 18.  Section 214A.5, subsection 2, Code 2022, is amended to read as follows:
   2.  A wholesale dealer selling ethanol blended gasoline, biobutanol blended gasoline, or biodiesel blended fuel to a purchaser shall provide the purchaser with a statement indicating its designation classification as provided in section 214A.2. The statement may be on the sales slip provided in this section or a similar document, including but not limited to a bill of lading or invoice.
    Sec. 19.  Section 214A.16, Code 2022, is amended to read as follows:
   214A.16  Notice of renewable fuel —— decal.
   1.  a.  If ethanol blended gasoline is sold from a motor fuel pump, the motor fuel pump shall have affixed a decal identifying the ethanol blended gasoline.
   b.  If the motor fuel pump dispenses ethanol blended gasoline classified as E-11 to E-15 for use in gasoline-powered vehicles not required to be flexible fuel vehicles, the motor fuel pump shall have affixed a decal as prescribed by the United States environmental protection agency.
   c.  1.  a.  If the motor fuel pump dispenses ethanol blended gasoline classified as higher than standard ethanol blended gasoline pursuant to section 214A.2 is advertised for sale or sold at a retail motor fuel site, the motor fuel dispenser dispensing the ethanol blended gasoline shall be affixed with a decal shall contain language stating that the classification of the ethanol blended gasoline is for use in flexible fuel vehicles.
   d.  b.  If biobutanol blended gasoline is advertised for sale or sold from at a retail motor fuel site, the motor fuel pump, the motor fuel pump dispenser dispensing the biobutanol blended gasoline shall have be affixed with a decal identifying the classification of biobutanol blended gasoline.
   e.  If biodiesel fuel is sold from a motor fuel pump, the motor fuel pump shall have affixed a decal identifying the biodiesel fuel as provided in 
16 C.F.R. pt. 306
.
   2.  The design and location of the decal shall be prescribed by rules adopted by the department. A decal identifying a renewable fuel shall be consistent with standards adopted pursuant to section 159A.6. The department may approve an application to place a decal in a special location on a pump dispenser or container or use a decal with special lettering or colors, if the decal appears clear and conspicuous to the consumer. The application shall be made in writing pursuant to procedures adopted by the department.
    Sec. 20.  Section 452A.12, subsection 2, Code 2022, is amended to read as follows:
   2.  A person while transporting motor fuel or undyed special fuel from a refinery or marine or pipeline terminal in this state or from a point outside this state over the highways of this state in service other than that under subsection 1 shall carry in the vehicle a loading invoice showing the name and address of the seller or consignor, the date and place of loading, and the kind and quantity of motor fuel or special fuel loaded, together with invoices showing the kind and quantity of each delivery and the name and address of each purchaser or consignee. An invoice carried pursuant to this subsection for ethanol blended gasoline or biodiesel blended fuel shall state its designation classification as provided in section 214A.2.
    Sec. 21.  Section 455G.31, subsection 1, paragraph b, Code 2022, is amended to read as follows:
   b.  Ethanol blended gasoline shall be designated classified in the same manner as provided in section 214A.2.
DIVISION IV
IOWA SHEEP AND WOOL PROMOTION BOARD

    Sec. 22.  Section 182.5, Code 2022, is amended to read as follows:
   182.5  Composition of board.
   The Iowa sheep and wool promotion board established under this chapter pursuant to section 182.4 shall be composed of nine producers, one from each district. The dean of the college of agriculture and life sciences of Iowa state university of science and technology or the dean’s representative and the secretary or the secretary’s designee shall serve as ex officio nonvoting members of the board. The board shall annually elect a chairperson from its membership.
    Sec. 23.  Section 182.7, Code 2022, is amended to read as follows:
   182.7  Notice of election for directors membership positions.
   1.  Notice of the initial election for directors of membership positions on the board shall be given by the secretary by publication in a newspaper of general circulation in the state at least five days prior to the date of the election and in any other reasonable manner as determined by the secretary. The notice shall set forth the period of time for voting, voting places, and other information as the secretary deems necessary.
   2.  Notice of a subsequent elections election for the a membership position for a district on the board shall be given by the board by publication in a newspaper of general circulation in the district state and in any other reasonable manner as determined established by the board and. The notice shall set forth the period of time for voting, voting places, and other information as the board deems necessary.
    Sec. 24.  Section 182.8, Code 2022, is amended to read as follows:
   182.8  Terms.
   The term of office for members of the board shall be three years and no member shall serve more than two complete consecutive terms. The producers members on the initial board shall determine their terms by lot, so that three producers members shall serve a one-year term, three producers members shall serve a two-year term, and three producers members shall serve a three-year term.  A member elected to the initial board shall not serve more than two complete consecutive terms. A member subsequently elected to the board shall not serve more than a certain number of consecutive terms if, and as may be, established by the board.
    Sec. 25.  Section 182.9, Code 2022, is amended to read as follows:
   182.9  Subsequent membership —— nominations —— election.
   After the appointment of the initial board, the board shall administer subsequent elections for members of the board with the assistance of the secretary. Before the expiration of a member’s term of office, the board shall appoint a nominating committee for the district represented by the member. The nominating committee shall consist of five producers who are residents of the district from which a member must be elected. The nominating committee shall nominate two resident any number of producers as candidates for the membership position for which an election is to be held.  The board shall nominate candidates based on criteria established by the board. Additional candidates may be nominated by a written petition of signed by twenty-five resident producers. The board shall provide by rule and shall publish procedures governing the time and place of filing the nominations The petition shall be in a form and delivered to the board as required by the board.
    Sec. 26.  Section 182.10, Code 2022, is amended to read as follows:
   182.10  Vacancies.
   The board shall by appointment fill an unexpired term if a vacancy occurs on the board. The board shall select an appointee shall be a resident producer in the district having a vacancy based on the criteria established by the board.
DIVISION V
LOCAL FOOD AND FARM PROGRAM

    Sec. 27.  Section 267A.2, Code 2022, is amended by adding the following new subsection:
   NEW SUBSECTION.  5.  “Secretary” means the secretary of agriculture.
    Sec. 28.  Section 267A.3, subsections 2 and 3, Code 2022, are amended by striking the subsections and inserting in lieu thereof the following:
   2.  The council shall be composed of the following voting members:
   a.  The secretary or the secretary’s designee.
   b.  The following persons appointed by the secretary:
   (1)  Four farmers each of whom shall produce an agricultural commodity in this state used to prepare or process a local food. A farmer must be actively engaged in the on-farm preparation or processing of an agricultural commodity into local food. The farmer must offer the local food for sale in this state directly to consumers. The secretary must appoint farmers actively engaged in producing each of the following:
   (a)  Livestock used to produce meat products.
   (b)  Poultry used to produce poultry products.
   (c)  Dairy animals used to produce milk and dairy products.
   (d)  Fruit or vegetables to be washed or to be produced, cut, canned, or otherwise processed into products.
   (2)  Two managers of firms each of whom shall represent different types of processors of agricultural commodities doing business in this state. A manager shall be actively engaged in the purchase of agricultural commodities from farmers, the preparation or processing of those commodities into local food, and the resale of the local food to distributors on a wholesale basis in this state. The secretary must appoint managers actively engaged in the sale of the following:
   (a)  Meat products, poultry products, or milk or dairy products.
   (b)  Fruits or vegetables, fruit products, or vegetable products.
   (3)  One manager of a wholesale distributor of local food doing business in this state. The manager must be actively engaged in the purchase of local food prepared or processed from agricultural commodities by processors, and in the marketing of local food on a wholesale basis to food establishments in this state.
   (4)  Three managers of food establishments doing business in this state. Each manager must be actively engaged in the purchase of local food prepared or processed from agricultural commodities produced in this state, the purchase of the local food from wholesale distributors, and the marketing or distribution of the local food to consumers in this state. The secretary must appoint managers actively engaged in the operation of the following:
   (a)  A grocery store.
   (b)  A food service provider distributing food to any of the following:
   (i)  Students attending a public or private school from kindergarten through grade twelve.
   (ii)  Children attending a center for early education.
   (c)  A food service provider distributing local food to an institution not attended by children.
   (5)  Two heads of local or regional community food organizations doing business in this state. Each head must be actively engaged in promoting the well-being of Iowans through the distribution of local food prepared or processed from agricultural commodities produced in this state.
   (6)  An attorney practicing in areas of food and agricultural law.
   (7)  An employee of a government entity who specializes in nutrition programs.
   3.  The secretary may invite interested organizations to submit nominations of candidates eligible to be appointed to the council. A designee of the secretary or a member appointed by the secretary serves at the pleasure of the secretary.
    Sec. 29.  Section 267A.6, Code 2022, is amended to read as follows:
   267A.6  Local food and farm program.
   1.  The local food and farm program coordinator, with advice from the local food and farm program council, shall develop and administer a local food and farm program necessary to carry out the purpose and goals of this chapter as provided in section 267A.1, including but not limited to by improving any of the following:.
   1.  2.  In administering the program, the coordinator may sponsor and fund projects that do any of the following:
   a.  Communication Improve communication and cooperation between and among farmers, food entrepreneurs, and consumers.
   2.  b.  Coordination Improve communication between and among government agencies, public universities and community colleges, organizations, and private-sector firms working on local food and farm-related issues.
   c.  Demonstrate the value of processing, distributing, and marketing local foods. A demonstration project must be capable of being replicated on a statewide basis.
EXPLANATION
The inclusion of this explanation does not constitute agreement with
the explanation’s substance by the members of the general assembly.
   GENERAL. This bill provides for programs and regulations administered and enforced by the department of agriculture and land stewardship (DALS).
   CHOOSE IOWA PROMOTIONAL PROGRAM. The bill requires DALS to establish and administer a choose Iowa promotional program (program) in order to provide consumers a choice in purchasing a food item originating as an agricultural commodity produced on an Iowa farm (amended Code section 159.20). This includes either (1) an agricultural commodity produced on an Iowa farm or (2) a product processed in this state, if the product is an agricultural commodity that has been prepared in Iowa, or any of the product’s ingredients are agricultural commodities produced on an Iowa farm (new Code section 159.29). DALS is provided discretion to further define what constitutes an Iowa farm and describe how an agricultural commodity originates on an Iowa farm.
   CHOOSE IOWA LOGO. As part of the program, DALS may establish a choose Iowa logo (logo) to identify a food item originating as an agricultural commodity produced on an Iowa farm. DALS may register the logo as a mark with the secretary of state. DALS may also register the logo as a trademark with the United States patent and trademark office or as a copyright with the United States copyright office. The use of the logo does not create an express or implied warranty; involve state or federal labeling requirements; or indicate the grade, specification, standard, or value of a food item (new Code section 159.30).
   CHOOSE IOWA PROMOTIONAL PROGRAM —— LICENSING AGREEMENTS AND FEES. DALS may enter into a licensing agreement (agreement) with a person who applies to use the logo. An agreement cannot be for more than five years. DALS must evaluate and approve or disapprove applications based on criteria established by rule. DALS may also establish application and license fees by rule.
   CHOOSE IOWA FUND. A choose Iowa fund (fund) is established in the state treasury under DALS’ management and control. The fund includes moneys that DALS collects in fees or otherwise receives, including by appropriation or gift. DALS must use the moneys exclusively to carry out the provisions of the bill.
   PESTICIDE REGULATION. The bill amends Code chapter 206, “the Pesticide Act of Iowa” (Code section 206.1) which in part regulates commercial and private applicators. Before selling or offering for sale any pesticide for use in this state, a person must register each brand and grade of that pesticide with DALS. Registration fees are based on a percentage of gross sales of that brand or grade in this state with a minimum fee of $250 and a maximum fee of $3,000 (Code section 206.12(3)). The bill replaces that method of calculating the registration fee with a flat fee of $300. Generally, a person in business as a commercial applicator (applying pesticides to another person’s land) must be certified and licensed (Code sections 206.5 and 206.6). A private applicator (e.g., a farmer) applying a restricted use pesticide must be certified (Code section 206.5). During the last regular session, the general assembly enacted SF 482 (2021 Acts, chapter 28) which in part provides that a private applicator is subject to the same civil penalty as a commercial applicator for violating a provision of the Code chapter (amended Code section 206.19). The Act provided that the amount for each violation committed by a commercial applicator or private applicator cannot exceed $500 for each violation. The bill amends the provision by changing the term from “violation” back to “offense”.
   MOTOR FUEL REGULATION —— BACKGROUND. DALS regulates persons advertising for sale or selling motor fuel on a wholesale or retail basis (Code chapter 214A) as well as motor fuel infrastructure used to store and dispense motor fuel at a retail motor fuel site owned or operated by a retail dealer and, in particular, metered motor fuel pumps located at a retail motor fuel site (Code chapter 214). Three types of motor fuel are regulated by DALS, including gasoline and diesel fuel (Code section 214A.2), and kerosene (Code sections 214A.2 and 214A.2A) as well as their respective components. A biofuel is a component used to formulate a motor fuel and is closely associated with formulations of both gasoline and diesel fuel. A renewable fuel is a term which refers to either a biofuel or a motor fuel blended with a biofuel. A biofuel includes ethanol which is grain alcohol (e.g., derived from corn) used to produce ethanol blended gasoline, biobutanol which is isobutyl or n-butyl alcohol (derived from the same feedstocks as ethanol but includes corn stover) used to produce biobutanol blended gasoline, and biodiesel which is often a vegetable oil (e.g., derived from soybeans) used to produce biodiesel blended fuel. DALS establishes standards for these motor fuels and their components based on two outside sources of authority: (1) specifications recommended by ASTM international, a private globally recognized organization, and (2) requirements adopted by the United States environmental protection agency (EPA). The EPA and the United States federal trade commission (FTC) also regulate the labeling of motor fuel dispensers by requiring information about the motor fuel to be dispensed, such as the octane level of gasoline and the percentage content of any biofuel component (42 U.S.C. §7545 and 40 C.F.R. pt. 1090, 15 U.S.C. §2801 et seq., 42 U.S.C. §17021, 16 C.F.R. pt. 306, and 40 C.F.R. §80.1501(a)). DALS’ regulation of a renewable fuel depends upon its classification expressed as an abbreviation identifying the renewable fuel according to type followed by a number representing the biofuel percentage by volume usually measured by gallon. The designation “xx” is used as a stand-in designation for the actual percentage of a biofuel percentage threshold (amended Code section 214A.2(5)) depending upon the Code provision (e.g., the E-15 plus gasoline promotion tax credit in Code section 422.11Y). One special exception is E-85 gasoline which is based on a percentage range of between 70 and 85 percent by volume of ethanol.
   MOTOR FUEL REGULATION —— REVISION OF TERMS. The bill revises certain terms, including by changing “A.S.T.M. international” to “ASTM international” and defining “biodiesel” by referring to its production method (amended Code section 214A.1). The bill provides for the consistent use of certain terms, including “specifications” which refers to recommendations adopted by ASTM international, “requirements” which refers to EPA regulations, and “standards” which refers to departmental rules (amended Code section 214A.2). The bill also provides for the consistent use of the term “standard” which is occasionally referred to as “designation” (amended Code sections 214A.2A, 214A.3, 214A.5, 452A.12, and 455G.31). The bill provides that a label is to be placed on a “motor fuel dispenser” rather than a “motor fuel pump” (amended Code section 214A.16).
   MOTOR FUEL REGULATION —— DEPARTMENTAL STANDARDS. The bill provides that the minimum octane rating for premium grade gasoline is changed from 90 to 91 (amended Code section 214A.2(2)). For all three types of motor fuel, departmental standards may be based in part or in whole on ASTM international specifications, and may include successor specifications. The bill eliminates a requirement recognizing that EPA must grant a seasonal waiver from its requirements before a retail dealer may advertise for sale or sell ethanol blended gasoline (amended Code section 214A.2(3)). The threshold for biodiesel blended fuel is increased from B-1 to B-5 (amended Code section 214A.2(4)).
   MOTOR FUEL REGULATION —— CLASSIFICATIONS. The bill adds subclassifications for biofuels including for ethanol classified as E-100, biobutanol classified as Bu-100, and biodiesel classified as B-100. The bill also recognizes E-85 according to its revised percentage range, which is 68 to 83 percent.
   MOTOR FUEL REGULATION —— ADVERTISING. The bill revises a provision which prohibits a person from knowingly falsely advertising for sale motor fuel (amended Code section 214A.3). The bill replaces a provision that prohibits a person from falsely advertising that a motor fuel is or is not a renewable fuel with a provision that prohibits a person from falsely advertising the classification of a renewable fuel. The bill also eliminates a requirement that a motor fuel pump (motor fuel dispenser) be affixed with a label that identifies the dispensed gasoline as ethanol blended gasoline (e.g., E-10), that identifies ethanol blended gasoline classified from E-11 to E-15, or that identifies dispensed diesel fuel as biodiesel blended fuel. The bill retains a state requirement that a motor fuel dispenser identify gasoline classified as higher than E-15 (e.g., E-85) or any classification of biobutanol blended gasoline. The bill does not affect federal labeling requirements.
   MOTOR FUEL REGULATION —— APPLICABLE PENALTIES. A person who violates a provision of Code chapter 214A is guilty of a serious misdemeanor. A serious misdemeanor is punishable by confinement for no more than one year and a fine of at least $430 but not more than $2,560. However, the state may initiative a substitute civil enforcement action as an administrative action by DALS or as a judicial proceeding by the attorney general upon referral by DALS. The civil penalty must be for at least $100 but not more than $1,000 for each violation and each day of a continuing violation constitutes a separate offense (Code section 214A.11).
   IOWA SHEEP AND WOOL PROMOTION BOARD. The bill amends provisions establishing the Iowa sheep and wool promotion board (board) which includes members residing in each official crop reporting district (district) as published by the United States department of agriculture (Code sections 182.1, 182.7, 182.9, and 182.10). A board member serves for a term of three years (Code section 182.8). The bill eliminates requirements relating to members residing in districts and allows the board to nominate candidates and establish term limits.
   LOCAL FOOD AND FARM PROGRAM. The local food and farm program (program) is established to improve communication and cooperation between and among farmers, food entrepreneurs, and consumers and coordination among government agencies, public universities and community colleges, organizations, and private-sector firms working on local food and farm-related issues (Code section 267A.1). The program is administered by a local food and farm program coordinator (Code section 267A.4) who acts in consultation with a local food and farm program council (Code section 267A.3). The bill replaces the council’s membership. The current membership includes the secretary of agriculture (secretary) or a designee; a member appointed by the Iowa farmers union and a member appointed by the Iowa farmers market association; and three members appointed by the governor, including a person associated with a resource conservation and development office, a person actively engaged in the production, processing, and distribution of food products; and a person from the regional food systems working group (Code section 267A.3).
   Under the bill, the secretary or secretary’s designee remains on the council but other members are replaced by 14 persons appointed by the secretary. The membership must include four farmers engaged in producing agricultural commodities (livestock, poultry, dairy, vegetables, and fruits). The farmers must be engaged in the on-farm processing of the commodities into food products for retail sale. The membership must also include two managers of processing firms engaged in processing agricultural commodities into food products for sale to distributors on a wholesale basis, a manager of a distributor involved in the sale of food products to food establishments on a wholesale basis, three managers of food establishments distributing food products to consumers, two heads of local or regional community organizations interested in providing food services to individuals, an attorney practicing agricultural or food law, and an employee of a government entity interested in nutrition programs. Finally, the bill expands the program by allowing the coordinator in consultation with the council to fund projects that demonstrate the value of processing, distributing, and marketing local foods.