HF 666 (LSB 1218HZ (2) 90)

HOUSE FILE 666

BY  COMMITTEE ON WAYS AND MEANS

(SUCCESSOR TO HF 277)
(SUCCESSOR TO HSB 113)

A BILL FOR

An Act providing for programs and regulations administered and enforced by the department of agriculture and land stewardship, providing fees, providing for the allocation of moneys, making penalties applicable, and including effective date provisions.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

DIVISION I
REGULATION OF COMMERCIAL ESTABLISHMENTS

    Section 1.  Section 162.2, subsection 19, Code 2023, is amended by striking the subsection and inserting in lieu thereof the following:
   19.  “Pet shop” means a facility where vertebrate animals, excluding fish, not born and reared on the facility’s premises are bought, sold, exchanged, or offered for sale or exchange to the public, at retail. “Pet shop” does not include a facility if one of the following applies:
   a.  The facility receives less than one thousand dollars from the sale or exchange of vertebrate animals, excluding fish, during a twelve-month period.
   b.  The facility sells or exchanges less than twelve vertebrate animals, excluding fish, during a twelve-month period.
DIVISION II
GRAIN REGULATION

PART A
GRAIN DEALERS
    Sec. 2.  Section 203.1, Code 2023, is amended by adding the following new subsection:
   NEW SUBSECTION.  12A.  “Scale weight ticket” means the same as defined in section 203C.1.
    Sec. 3.  Section 203.5, subsection 8, paragraph a, Code 2023, is amended to read as follows:
   a.  The applicant has caused liability to the Iowa grain depositors and sellers indemnity fund in regard to a license issued under this chapter or chapter 203C, and the liability has not been discharged, settled, or satisfied.
    Sec. 4.  Section 203.11, subsection 2, paragraph a, subparagraph (3), Code 2023, is amended to read as follows:
   (3)  Uses a scale weight ticket or credit-sale contract in violation of this chapter or a requirement established by the department under this chapter.
    Sec. 5.  Section 203.15, subsection 2, paragraph f, Code 2023, is amended to read as follows:
   f.  The duration of the credit-sale contract, which shall not exceed twelve fifteen months from the date the contract is executed.
    Sec. 6.  Section 203.17, Code 2023, is amended to read as follows:
   203.17  Documents and records.
   1.  The department may adopt rules specifying the form, content, use, and maintenance of documents issued by a grain dealer under this chapter including but not limited to scale weight tickets, settlement sheets, daily position records, and credit-sale contracts. The department may adopt rules for both printed and electronic documents, including rules for the transmission, receipt, authentication, and archiving of electronically generated or stored documents.
   2.  All scale weight ticket forms in the possession of a grain dealer shall have been permanently and consecutively numbered at the time of printing. A grain dealer shall maintain an accurate record of all scale weight ticket numbers. The record shall include the disposition of each numbered form, whether issued, destroyed, or otherwise disposed of.
    Sec. 7.  Section 203.20, Code 2023, is amended to read as follows:
   203.20  Shrinkage adjustments —— disclosures —— penalties.
   1.  A person who, in connection with the receipt of corn or soybeans grain for storage, processing, or sale, adjusts the scale weight of the grain to compensate for the moisture content of the grain shall compute the amount of the adjustment by multiplying the scale weight of the grain by that factor which results in a rate of adjustment of one and eighteen hundredths percent of weight per one percent of moisture content. The use of person who uses any rate of weight adjustment for moisture content other than the one prescribed by this subsection is commits a fraudulent practice as defined in section 714.8. The person shall post on the business premises in a conspicuous place notice of the rate of adjustment for moisture content that is as prescribed by this subsection. Failure The person who fails to make this disclosure is commits a simple misdemeanor.
   2.  A person who, in connection with the receipt of grain for storage, processing, or sale, adjusts the quantity of the grain received to compensate for losses to be incurred during the handling, processing, or storage of the grain shall post on the business premises in a conspicuous place notice of the rate of adjustment to be made for this shrinkage. Failure The person who fails to make the required this disclosure is commits a simple misdemeanor.
   3.  A person who adjusts the scale weight of corn or soybeans both grain for moisture content and for handling, processing, or storage losses may combine the two adjustment factors into a single factor and may use this resulting factor to compute the amount of weight adjustment in connection with storage, processing, or sale transactions, provided that the person shall post on the business premises in a conspicuous place a notice that discloses the moisture shrinkage factor prescribed by subsection 1, the handling shrinkage factor to be imposed, and the single factor that results from combining these factors. Failure The person who fails to make the required this disclosure is commits a simple misdemeanor.

PART B
WAREHOUSE OPERATORS
    Sec. 8.  Section 203C.5, subsection 2, Code 2023, is amended to read as follows:
   2.  a.  The department may adopt rules specifying the form, content, and use of documents issued by a warehouse operator under this chapter including but not limited to scale weight tickets, warehouse receipts, settlement sheets, and daily position records. The department may adopt rules for both printed and electronic documents, including rules for the transmission, receipt, authentication, and archiving of electronically generated or stored documents.
   b.  All scale weight ticket forms and warehouse receipt forms in the possession of a warehouse operator shall have been permanently and consecutively numbered at the time of printing. A warehouse operator shall maintain an accurate record of the numbers of these documents. The record shall include the disposition of each form, whether issued, destroyed, or otherwise disposed of. The department may by rule require this use of prenumbered forms and recording for documents other than scale weight tickets and warehouse receipts.
    Sec. 9.  Section 203C.6, subsection 8, paragraph a, Code 2023, is amended to read as follows:
   a.  The applicant has caused liability to the Iowa grain depositors and sellers indemnity fund through operations under a license issued under this chapter or chapter 203, and the liability has not been discharged, settled, or satisfied.
    Sec. 10.  Section 203C.17, subsections 1, 2, 3, 4, and 5, Code 2023, are amended to read as follows:
   1.  Any grain which has been received at any Grain deposited with a licensed warehouse operator for which the actual sale price is has not been fixed and either proper documentation made has not been furnished or payment has not been made shall be construed to be grain held for storage within the meaning of this chapter. Grain may be held considered stored grain and may be retained in open storage or placed on under warehouse receipt. A warehouse receipt shall be issued for all grain held in open storage within one year from the date of delivery to the warehouse, unless the depositor has signed a statement that the depositor does not desire a warehouse receipt. A The licensed warehouse operator shall issue a warehouse receipt shall be issued to the depositor upon request by the depositor. The warehouse operator’s tariff shall apply for to any grain that is retained in open storage or placed under warehouse receipt as provided in section 203C.18.
   2.  Bulk grain deposited with a licensed warehouse operator for processing, cleaning, drying, shipping for the account of the depositor, or any other purpose shall be removed within thirty days from the date of deposit or such grain shall be determined as considered stored grain and the. The warehouse operator’s tariff charges shall apply to the bulk grain as provided in section 203C.28.
   3.  Grain received on deposited and subject to a scale weight ticket which that fails to have the price fixed and properly documented on the records of the licensed warehouse operator shall be construed to be retained in open storage.
   4.  All bulk grain whether retained in  open storage and deposited subject to a scale weight ticket or having been placed on under warehouse receipt is covered by the grain depositors and sellers indemnity fund created in as provided in chapter 203D.
   5.  Any grain which has been received at any An unlicensed warehouse and for which the operator shall not retain deposited bulk grain, if its actual sale price has not been fixed, and payment for the bulk grain has not been made within thirty days from receipt of the grain its date of deposit, unless covered purchased by a credit-sale contract, shall be construed to be unlawful storage within the meaning of this chapter. Bulk grain received at any An unlicensed warehouse for any operator who retains deposited bulk gain under any other purpose circumstance must either be returned return the bulk grain to the depositor, or disposed of dispose of the bulk grain by order of the depositor, within thirty days from date of actual the deposit of the bulk grain.
    Sec. 11.  Section 203C.25, Code 2023, is amended to read as follows:
   203C.25  Shrinkage adjustments —— disclosures —— penalties.
   1.  A person who, in connection with the receipt of corn or soybeans grain for storage, processing, or sale, adjusts the scale weight of the grain to compensate for the moisture content of the grain shall compute the amount of the adjustment by multiplying the scale weight of the grain by that factor which results in a rate of adjustment of one and eighteen hundredths percent of weight per one percent of moisture content. The use of person who uses any rate of weight adjustment for moisture content other than the one prescribed by this subsection is commits a fraudulent practice as defined in section 714.8. The person shall post on the business premises in a conspicuous place notice of the rate of adjustment for moisture content that is as prescribed by this subsection. Failure The person who fails to make this disclosure is commits a simple misdemeanor.
   2.  A person who, in connection with the receipt of grain for storage, processing, or sale, adjusts the quantity of the grain received to compensate for losses to be incurred during the handling, processing, or storage of the grain shall post on the business premises in a conspicuous place notice of the rate of adjustment to be made for this shrinkage. Failure The person who fails to make the required this disclosure is commits a simple misdemeanor.
   3.  A person who adjusts the scale weight of corn or soybeans both grain for moisture content and for handling, processing, or storage losses may combine the two adjustment factors into a single factor and may use this resulting factor to compute the amount of weight adjustment in connection with storage, processing, or sale transactions, provided that the person shall post on the business premises in a conspicuous place a notice that discloses the moisture shrinkage factor prescribed by subsection 1, the handling shrinkage factor to be imposed, and the single factor that results from combining these factors. Failure The person who fails to make the required this disclosure is commits a simple misdemeanor.
    Sec. 12.  Section 203C.36, subsection 2, paragraph a, subparagraph (3), Code 2023, is amended to read as follows:
   (3)  Uses a scale weight ticket, warehouse receipt, or other document in violation of this chapter or requirements established by the department under this chapter.

PART C
INDEMNITY FUND
    Sec. 13.  Section 203D.1, Code 2023, is amended by adding the following new subsection:
   NEW SUBSECTION.  14A.  “Scale weight ticket” means the same as defined in section 203C.1.
    Sec. 14.  Section 203D.3, subsection 3, Code 2023, is amended to read as follows:
   3.  The fiscal assessment year of the fund begins July September 1 and ends on June 30 August 31. Fiscal Assessment quarters of the fund begin July September 1, October December 1, January March 1, and April June 1. The finances of the fund shall be calculated on an accrual basis in accordance with generally accepted accounting principles.
    Sec. 15.  Section 203D.3A, subsection 1, paragraph b, unnumbered paragraph 1, Code 2023, is amended to read as follows:
   A licensee shall pay a participation fee on four successive installment dates, with each installment date occurring on the last date of the fund’s fiscal assessment quarter as provided in section 203D.3. The licensee shall pay twenty-five percent of the total participation fee assessed on each installment date. However, nothing in this subsection prevents a licensee from paying the participation fee on an accelerated basis. A licensee shall pay the first installment on the last date of the fund’s fiscal assessment quarter immediately following the licensee’s anniversary date.
    Sec. 16.  Section 203D.5, subsection 1, Code 2023, is amended to read as follows:
   1.  The board shall annually review the debits of and credits to the grain depositors and sellers indemnity fund created in section 203D.3 and shall determine whether to impose the participation fee and per-bushel fee as provided in section 203D.3A, make adjustments to the fees effective on the previous July September 1, or waive the fees as necessary to comply with this section. The board shall make the determination not later than May 1 of each year. The board shall impose the fees or adjust the fees effective on the previous July September 1 in accordance with chapter 17A. The imposition or adjustment of the fees shall become effective as follows:
   a.  For the participation fee, on the following July September 1. However, the licensee shall continue to pay the participation fee at the rate in effect on the prior July September 1, until the licensee has paid the amount owing.
   b.  For a per-bushel fee, on the following July September 1.
    Sec. 17.  Section 203D.5, subsection 4, Code 2023, is amended to read as follows:
   4.  If on the last date of the fund’s fiscal assessment year as provided in section 203D.3 the assets of the fund exceed eight million dollars, less any encumbered balances or pending or unsettled claims, all of the following apply:
   a.  The participation fee shall be waived and shall not be assessable or owing for the following fiscal assessment year of the fund. However, the licensee shall continue to pay any owing participation fee that was in effect on the prior July September 1.
   b.  The per-bushel fee shall be waived and shall not be assessable or owing.

PART D

EFFECTIVE DATE
    Sec. 18.  EFFECTIVE DATE.  This division of this Act, being deemed of immediate importance, takes effect upon enactment.
DIVISION III
WEIGHTS AND MEASURES

PART A
LICENSING, INSPECTIONS, AND FEES
    Sec. 19.  Section 214.2, Code 2023, is amended to read as follows:
   214.2  License.
   1.  A person who uses or displays for use any commercial weighing and measuring device, as defined in section 215.1, shall secure must be issued a license from by the department for that device.  The department shall issue the license after inspecting the device.
   2.  a.  Except as provided in paragraph “b”, a license issued under subsection 1 shall expire on December 31 of each year.
   b.  A license issued under subsection 1 for a motor fuel pump shall expire on June 30 of each year.
    Sec. 20.  Section 214.3, subsection 1, Code 2023, is amended by striking the subsection.
    Sec. 21.  Section 214.3, subsection 2, Code 2023, is amended to read as follows:
   2.  The A license inspection fee is imposed on a person who uses or displays for use a commercial weighing and measuring device. The license fee is due the day the device is placed into service department issues the license. A license inspection fee shall be charged to the person owning or operating a commercial weighing and measuring device inspected The amount of the license fee shall be calculated in accordance with the class or section for devices as established by handbook 44 of the United States national institute of standards and technology.
    Sec. 22.  Section 214.11, subsection 1, Code 2023, is amended to read as follows:
   1.  The department shall provide for annual biennial inspections of all motor fuel pumps, including but not limited to motor fuel blender pumps, licensed under this chapter. Inspections shall be for the purpose of determining the accuracy and correctness of motor fuel pumps. For that purpose the department’s inspectors may enter upon the premises of any a wholesale dealer or a retail dealer motor fuel site.
    Sec. 23.  Section 215.2, Code 2023, is amended to read as follows:
   215.2  Special inspection tests —— request —— fees.
   1.  The owner or servicer of a commercial weighing and measuring device may request the department conduct a special inspection test of the device to determine its accuracy and correctness.
   2.  The fee for special tests, including but not limited to, using state inspection equipment, for the calibration, testing, certification, or repair conducting a special inspection test of a commercial weighing and measuring device shall be paid by the owner or servicer or person requesting the special inspection test in accordance with the following schedule:
   1.  a.  Class S, scales, seventy-five dollars per hour.
   2.  b.  Class M, meters, fifty-two dollars and fifty cents per hour.
    Sec. 24.  REPEAL.  Section 215.12, Code 2023, is repealed.

PART B
MOTOR FUEL STANDARDS AND CLASSIFICATIONS
    Sec. 25.  Section 159A.6, subsection 1, paragraph c, Code 2023, is amended to read as follows:
   c.  Develop standards for decals required pursuant to section 214A.16 214A.21A, which shall be designed to promote the advantages of using renewable fuels. The standards may be incorporated within a model decal adopted by the office.
    Sec. 26.  Section 214A.1, subsection 2, Code 2023, is amended to read as follows:
   2.  “ASTM international” means a nonprofit organization, previously named the American society for testing and materials international.
    Sec. 27.  Section 214A.1, Code 2023, is amended by adding the following new subsections:
   NEW SUBSECTION.  33A.  a.  “Renewable diesel” means a motor fuel for use in an internal combustion engine and ignited by pressure without the presence of an electric spark, which is produced from nonfossil renewable resources, including agricultural plants, animal fats, residue, and waste generated from the production, processing, and marketing of agricultural products, and other renewable resources.
   b.  “Renewable diesel” must meet the standards provided in section 214A.2.
   c.  “Renewable diesel” does not include any of the following:
   (1)  Biodiesel.
   (2)  A fuel that has been coprocessed.
   NEW SUBSECTION.  33B.  “Renewable diesel blended fuel” means a blend of renewable diesel with petroleum-based diesel fuel, biodiesel, or a combination of petroleum-based diesel fuel and biodiesel, which meets the standards, including separately the standard for its renewable diesel component, provided in section 214A.2.
    Sec. 28.  Section 214A.2, subsection 4, Code 2023, is amended by adding the following new paragraph:
   NEW PARAGRAPH.  c.  (1)  If the motor fuel is advertised for sale or sold as renewable diesel or renewable diesel blended fuel, the motor fuel must meet departmental standards based in part or in whole on specifications adopted by ASTM international for renewable diesel or renewable diesel blended motor fuel, to every extent applicable, as determined by the department subject to subparagraph (2).
   (2)  Renewable diesel must at least meet departmental standards based in whole or in part on ASTM international specification D975, or a successor ASTM international specification, established by rule. The specification shall apply to renewable diesel before it leaves its place of manufacture.
    Sec. 29.  Section 214A.2, subsection 5, Code 2023, is amended by adding the following new paragraph:
   NEW PARAGRAPH.  d.  (1)  Renewable diesel shall be classified RD-100.
   (2)  Renewable diesel blended fuel shall be classified RD-xx where “xx” is the volume percent of renewable diesel.
    Sec. 30.  Section 214A.2B, Code 2023, is amended to read as follows:
   214A.2B  Laboratory for motor fuel and biofuels fuels, biofuels, and renewable fuels.
   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 The Iowa central fuel testing laboratory at Iowa central community college shall test motor fuels, biofuels, and renewable fuels, including but not limited to B-20 biodiesel fuel testing for use by motor trucks and the ability of biofuels to meet ASTM international standards. The laboratory shall conduct the testing of motor fuel fuels sold in this state and biofuel which is biofuels blended in with motor fuel fuels in this state to ensure that the motor fuel or fuels, biofuels, and renewable fuels meet the requirements departmental standards in section 214A.2.

PART C
CODE EDITOR DIRECTIVE
    Sec. 31.  CODE EDITOR DIRECTIVE.
   1.  The Code editor is directed to make the following transfer:
   Section 214A.16 to section 214A.21A.
   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.
DIVISION IV
WATER QUALITY

    Sec. 32.  Section 466B.43, subsection 6, Code 2023, is amended to read as follows:
   6.  By October 1, 2019, and each October 1 thereafter of each year, the division shall submit a report to the governor and the general assembly itemizing expenditures, by hydrologic unit code 8 watershed, under the programs, if any, during the previous fiscal year, if any.
    Sec. 33.  Section 466B.44, subsection 5, Code 2023, is amended to read as follows:
   5.  Notwithstanding any other provision in this section to the contrary, beginning on July 1, 2018, the division may use any amount available to support the water quality urban infrastructure program to instead extend do any of the following:
   a.  Extend and support the three-year data collection of in-field agricultural practices project as enacted in 2015 Iowa Acts, ch. 132, §18.
   b.  Support water quality agriculture infrastructure programs created in section 466B.43, to the extent that moneys are not obligated or encumbered during a fiscal year to adequately support all urban infrastructure program projects that meet the division’s requirements.
    Sec. 34.  Section 466B.44, subsection 7, Code 2023, is amended to read as follows:
   7.  By October 1, 2019, and by October 1 of each year thereafter, the division shall submit a report to the governor and the general assembly itemizing expenditures under the program, if any, during the previous fiscal year.
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 relates to a number of regulations and programs administered and enforced by the department of agriculture and land stewardship (DALS). Specifically, the bill amends provisions regulating commercial establishments including pet shops engaged in the business of purchasing and transferring (by sale or exchange) vertebrate animals (animals) other than agricultural animals (Code chapter 162). The bill regulates grain transactions including by grain dealers (dealers) and warehouse operators (operators) (Code chapters 203 and 203C) and the indemnification of losses by sellers or depositors from the grain depositors and sellers indemnity fund (Code chapter 203D). The bill also regulates the commercial use of weights and measures, including motor fuel pumps (fuel pumps) that are part of motor fuel dispensers (dispensers), and types of motor fuel advertised for sale (Code chapters 214, 214A, and 215), including diesel fuel for use in certain internal combustion engines. Finally, the bill provides for the expenditure of moneys for surface water quality initiatives (initiatives) in order to assess and reduce nutrients in this state’s watersheds (Code chapter 466B) in conformance with the Iowa nutrient reduction strategy (Code section 455B.171).
   COMMERCIAL ESTABLISHMENTS —— PET SHOPS. Under current law, a business classified as a pet shop is a type of establishment required to be annually licensed (Code section 162.5) and pay an associated fee (Code section 162.2B). A business is not regulated as a pet shop if, during the prior 12-month period, the business either receives less than $500 or transfers less than six animals. The bill doubles the exemption qualifications to less than $1,000 or less than 12 animals (amended Code section 162.2).
   COMMERCIAL ESTABLISHMENTS —— PENALTY. A person who operates as a pet shop in violation of licensing requirements is guilty of a simple misdemeanor (Code section 162.13).
   GRAIN REGULATION —— BACKGROUND. As part of a grain transaction, an operator issues a prenumbered scale weight ticket to a depositor as evidence of stored grain. Alternatively, the operator may issue a warehouse receipt as a form which may be a document of title and therefore negotiable (Code chapter 554, Art. 7). In order for a seller or depositor to be indemnified for a loss by the fund, the dollar value of a claim for transferred grain is based on either a warehouse receipt or scale weight ticket (Code section 203D.6).
   GRAIN REGULATION —— TERMS. Currently, several different terms are used to describe the same item. The bill changes the terms to be uniform, including “scale ticket” to “scale weight ticket” and “Iowa grain depositors and sellers indemnity fund” to “grain depositors and sellers indemnity fund”, which are both defined (amended Code sections 203.1, 203.5, 203.11, 203.17, 203C.5, 203C.6, 203C.17, 203C.36, and 203D.1).
   GRAIN REGULATION —— GRAIN MOISTURE CONTENT. A person receiving corn or soybeans as part of a transaction involving storage, processing, or sale may adjust the scale weight to account for moisture content (i.e., reducing the scale weight by a special factor calculated for each 1 percent of moisture content). The bill provides that the adjustment applies to all grain in which there are standards established by the United States department of agriculture (Code sections 203.1 and 203C.1 and amended Code sections 203.20 and 203C.25).
   GRAIN REGULATION —— CREDIT-SALE CONTRACT. A buyer and seller of grain may execute a credit-sale contract, also known as a price-later contract, for transfer of title, in which the seller delivers the grain to the buyer who pays the seller a price more than 30 days later (Code section 203.1). In order to engage in these transactions, a buyer who is a grain dealer must maintain a class 1 license requiring a net worth of at least $75,000 (Code section 203.3(4)), the parties must execute a contract form meeting statutory requirements (amended Code section 203.15(2)), and the grain is not considered as purchased grain covered by the grain depositors and sellers indemnity fund (Code section 203D.6(4)). The bill extends the maximum period of a credit-sale contract’s duration, requiring later payment for the delivered grain, from 12 to 15 months (amended Code section 203.15(2)).
   GRAIN REGULATION —— OPEN STORAGE. An operator may retain delivered grain in open storage (meaning without issuing a warehouse receipt or making a purchase) subject to certain limitations. Grain subject to a scale weight ticket without having the price fixed and documented by the operator is considered to be retained in open storage. Currently, if grain is retained in open storage, the operator must issue the depositor a warehouse receipt within one year of the grain’s delivery date, unless the depositor signs a statement refusing it. The bill eliminates this requirement. Upon request, the operator must still issue the depositor a warehouse receipt (amended Code section 203C.17).
   GRAIN REGULATION —— PENALTIES. A person who violates Code chapter 203 or 203C is guilty of a simple misdemeanor (Code sections 203.11 and 203C.36).
   GRAIN DEPOSITORS AND SELLERS INDEMNITY FUND. The fund compensates a “depositor” storing grain with a licensed operator who fails to return possession of the grain to the depositor, or a “seller” selling grain to a licensed dealer incurred when the dealer fails to make payment for the purchased grain (Code section 203D.6). The fund is supported by fees paid by operators and dealers. A dealer is assessed a participation fee and per-bushel fee based on purchased grain. An operator is assessed a participation fee based on warehouse storage capacity (Code sections 203D.3A and 203D.5). The Iowa grain indemnity fund board (board) acts on behalf of the fund, including by establishing the rate of fees to be assessed and owing each 12-month period beginning July 1 and ending June 30 which are divided into 3-month quarters (subject to a floor of $3 million when fees must be assessed and a ceiling of $8 million when fees can no longer be assessed). The bill changes the 12-month periods to begin September 1 and end August 31, and makes coordinating changes to when the quarterly periods begin and end.
   WEIGHTS AND MEASURES. A person who uses or displays a commercial weighing or measuring device (device) must be licensed. The term of the license is 12 months. Generally, the term is on a calendar year basis (January 1 to December 31) but for motor fuel pumps the term is on a fiscal year basis (July 1 to June 30). A fee is required for the issuance of the license and an inspection (license inspection fee) first due when the device is placed into service. DALS is expressly required to inspect motor fuel pumps each year. The bill provides that the fee is for the issuance of the license rather than the inspection, the license fee is due when the license is issued, and that DALS must inspect motor fuel pumps on a biennial basis (amended Code sections 214.2, 214.3, and 214.11). The bill also eliminates a requirement that persons engaged in repairing scales must file a bond with the state (repealed Code section 215.12).
   WEIGHTS AND MEASURES —— MOTOR FUEL STANDARDS AND CLASSIFICATIONS. Motor fuels include fossil (petroleum) based gasoline and diesel fuel as well as certain biofuel components derived from renewable (nonpetroleum) resources such as ethanol classified as E-100 and biodiesel comprised of monoalkyl esters of long-chain fatty acids and classified as B-100. Both types of substances are used to produce renewable fuels (e.g., E-15 or B-5) subject to separate departmental standards based on ASTM international (ASTM) specifications. The bill regulates another liquid fuel referred to renewable diesel classified as RD-100 that may be used as a motor fuel or a blending component and classified as RD-xx. RD-100 is produced from nonfossil renewable resources but is not biodiesel due to manufacturing processes. Petroleum-based diesel fuel and RD-100 are subject to the same ASTM specification D975 while B-100 is subject to ASTM specification D6751 (amended Code sections 214A.1 and 214A.2).
   WEIGHTS AND MEASURES —— TESTING LABORATORY. The bill expressly recognizes the Iowa central fuel testing laboratory at Iowa central community college as the official laboratory for testing motor fuels, biofuels, and renewable fuels (amended Code section 214A.2B).
   WEIGHTS AND MEASURES —— CODE EDITOR DIRECTIVE. The bill transfers Code section 214A.16 from subchapter I to subchapter II of Code chapter 214A. The Code section regulates a notice required to be posted for consumers purchasing renewable fuels. In 2022, the general assembly enacted 2022 Iowa Acts, chapter 1152, which reorganized Code chapter 214A. Subchapter I regulates general matters such as standards and classifications and subchapter II regulates the advertisement, sale, and use of motor fuel.
   WEIGHTS AND MEASURES —— PENALTY. A person who fails to allow for an inspection of a motor fuel pump is guilty of a simple misdemeanor.
   WATER QUALITY. DALS regulates two water quality initiatives, including water quality agriculture infrastructure programs (amended Code section 466B.43) and the water quality urban infrastructure program (amended Code section 466B.44). The initiative is supported by the water quality initiative fund (Code section 466B.45), the water quality infrastructure fund (Code section 8.57B), and the water quality financial assistance fund (Code section 16.134A). Moneys in the last fund (15 percent) are appropriated to support the water quality urban infrastructure program. The bill provides that if moneys remain after adequately supporting all water quality urban infrastructure program projects for the fiscal year, DALS may use those moneys to instead support water quality agriculture infrastructure programs. The bill also eliminates dates in several Code sections that are now extraneous.
   APPLICABLE PENALTIES. A simple misdemeanor is punishable by confinement for no more than 30 days and a fine of at least $105 but not more than $855.