House Study Bill 737 - Introduced HOUSE FILE _____ BY (PROPOSED COMMITTEE ON WAYS AND MEANS BILL BY CHAIRPERSON KAUFMANN) A BILL FOR An Act relating to pesticides, by providing for license fees 1 and tort liability. 2 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 3 TLSB 6342YC (3) 90 da/ns

H.F. _____ Section 1. Section 206.8, subsection 2, paragraph a, 1 subparagraph (1), unnumbered paragraph 1, Code 2024, is amended 2 to read as follows: 3 A pesticide dealer with less than one hundred twenty-five 4 thousand dollars in gross retail pesticide sales shall pay a 5 license fee according to the following schedule: 6 Sec. 2. Section 206.8, subsection 2, paragraph a, 7 subparagraph (1), Code 2024, is amended by adding the following 8 new subparagraph division: 9 NEW SUBPARAGRAPH DIVISION . (f) One hundred twenty-five 10 dollars, if the annual gross retail pesticide sales are one 11 hundred thousand dollars or more but less than one hundred 12 twenty-five thousand dollars. 13 Sec. 3. Section 206.8, subsection 2, paragraph b, 14 subparagraph (1), Code 2024, is amended to read as follows: 15 (1) A pesticide dealer with one hundred twenty-five 16 thousand dollars or more in gross retail pesticide sales shall 17 pay a license fee based on one-tenth of one percent of the 18 gross retail pesticide sales in the previous year. 19 Sec. 4. Section 206.12, subsection 7, paragraph a, 20 subparagraph (1), Code 2024, is amended to read as follows: 21 (1) The gross retail sales of all pesticides sold at 22 retail for use in this state by a licensee with one hundred 23 twenty-five thousand dollars or more in gross retail sales of 24 the pesticides sold for use in this state. 25 Sec. 5. Section 668.12, Code 2024, is amended by adding the 26 following new subsection: 27 NEW SUBSECTION . 5. Notwithstanding any provision to the 28 contrary, for any pesticide registered with the United States 29 environmental protection agency under the federal Insecticide, 30 Fungicide, and Rodenticide Act, 7 U.S.C. §136 et seq., the 31 label approved by the United States environmental protection 32 agency in registering the pesticide, or a label consistent with 33 the most recent human health assessment performed under the 34 federal Insecticide, Fungicide, and Rodenticide Act, or a label 35 -1- LSB 6342YC (3) 90 da/ns 1/ 3

H.F. _____ consistent with the United States environmental protection 1 agency carcinogenicity classification for the pesticide 2 under the federal Insecticide, Fungicide, and Rodenticide 3 Act, shall be sufficient to satisfy any requirements for a 4 warning regarding health or safety under chapter 206, any 5 other provision or doctrine of state law, including without 6 limitation the duty to warn, or any other common law duty to 7 warn. This subsection does not apply to any product made by a 8 People’s Republic of China state-owned enterprise. 9 EXPLANATION 10 The inclusion of this explanation does not constitute agreement with 11 the explanation’s substance by the members of the general assembly. 12 GENERAL. This bill provides for the sale and use of certain 13 pesticides regulated by the United States environmental 14 protection agency (EPA) under the federal Insecticide, 15 Fungicide, and Rodenticide Act (federal Act) and the “Pesticide 16 Act of Iowa” administered by the department of agriculture and 17 land stewardship under Code chapter 206 (state Act). 18 PESTICIDE LABELING. The bill provides for a defense from 19 civil liability associated with the use of pesticides that are 20 registered with the EPA acting under the federal Act. The 21 bill provides that a label provides sufficient warning if it 22 complies with any one of three criteria: (1) it was approved 23 by the EPA, (2) it is consistent with the most recent human 24 health assessment performed under the federal Act, or (3) it 25 is consistent with the EPA’s carcinogenicity classification 26 for the pesticide. In each case, the label is sufficient to 27 satisfy any requirements for a warning regarding health or 28 safety under the state Act, and any other provision of state 29 law or any other common law duty to warn. However, this 30 provision of the bill does not apply to a product made by a 31 Chinese state-owned enterprise. 32 PESTICIDE DEALER LICENSE FEES. The bill changes the annual 33 license fee rates for a pesticide dealer (dealer) based on 34 gross annual pesticide sales made by the dealer in the prior 35 -2- LSB 6342YC (3) 90 da/ns 2/ 3

H.F. _____ calendar year (sales) (Code section 206.8). Under current law, 1 there are two rate systems based on whether the dealer had less 2 than or equal to $100,000 in sales. Under the first system, 3 a dealer pays the fee amount on a flat rate basis according 4 to a graduated schedule ranging from a bottom rate of $10 for 5 sales of less than $10,000 to a top rate of $100 for sales from 6 $75,000 or more to less than the $100,000 cap. A dealer with 7 $100,000 or more in sales pays a license fee calculated as 8 one-tenth of 1 percent of the amount of dealer sales. The bill 9 adds a new top step to the first system of graduated flat rates 10 by imposing a fee of $125 for sales of $100,000 or more but less 11 than $125,000. It makes a corresponding change to the second 12 system by increasing from $100,000 to $125,000 the amount of 13 sales required for fees based on a percentage of sales. 14 -3- LSB 6342YC (3) 90 da/ns 3/ 3