SF 2410 (LSB 5372SZ (3) 90)

SENATE FILE 2410

BY  COMMITTEE ON APPROPRIATIONS

(SUCCESSOR TO SF 2209)
(SUCCESSOR TO SSB 3052)

A BILL FOR

An Act relating to agriculture, by providing for the administration of programs and regulations, making appropriations, and including effective date provisions.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

DIVISION I
IOWA-FOALED HORSES

    Section 1.  Section 99D.22, subsection 2, paragraph b, subparagraph (3), Code 2024, is amended to read as follows:
   (3)  (a)  Continuous For a thoroughbred foal, continuous residency from December 31 15 until the foal is inspected if the mare was bred by other than an Iowa registered stallion and is not bred back to an Iowa registered stallion.
   (b)  For a standardbred foal or quarter horse foal, continuous residency from January 31 until the foal is inspected if the mare was bred by other than an Iowa registered stallion and is not bred back to an Iowa registered stallion.
DIVISION II
AGRICULTURAL MARKETING

    Sec. 2.  Section 15E.370, Code 2024, is amended to read as follows:
   15E.370  Butchery innovation and revitalization fund and program.
   1.  As used in this section unless the context otherwise requires:
   a.  “Department” means the department of agriculture and land stewardship.
   b.  “Financial assistance” means assistance provided only from the funds and assets legally available to the authority pursuant to this section and includes assistance in the form of grants, low-interest loans, and forgivable loans.
   c.  “Fund” means the butchery innovation and revitalization fund.
   d.  “Located in” means the place or places at which a business’s operations are located and where at least ninety-eight percent of the business’s employees work, or where employees that are paid at least ninety-eight percent of the business’s payroll work.
   e.  “Program” means the butchery innovation and revitalization program.
   2.  a.  The fund is created in the state treasury under the control of the authority and consists of any moneys appropriated to the fund by the general assembly and any other moneys available and obtained or accepted by the authority for placement in the fund. The fund shall be used to award financial assistance as provided under the program. The authority shall use any moneys specifically appropriated for purposes of this section only for the purposes of the program.
   b.  Notwithstanding section 8.33, moneys in the fund that remain unencumbered or unobligated at the close of the fiscal year shall not revert but shall remain available for expenditure for the purposes designated until the close of the succeeding fiscal year.
   c.  The authority may use not more than five percent of the moneys in the fund at the beginning of each fiscal year for purposes of administrative costs, marketing, technical assistance, and other program support.
   1.  A butchery innovation and revitalization program is established within the department. The purpose of the program is to promote the development, modernization, and expansion of this state’s small-scale butchery industry.
   3.  2.  The authority, in consultation with In administering the program, the department, shall establish and administer the program for the purpose of awarding award financial assistance to eligible businesses for to support projects that do one or more of the following projects:
   a.  To expand Expand or refurbish an existing, or to establish a new, state-inspected small-scale meat processing business.
   b.  To expand Expand or refurbish an existing, or to establish a new, federally inspected small-scale meat processing business.
   c.  To expand Expand or refurbish an existing, or to establish a new, licensed custom locker.
   d.  To expand Expand or refurbish an existing, or to establish a new, mobile slaughter unit that operates in compliance with the most current mobile slaughter unit compliance guide issued by the United States department of agriculture food safety and inspection service.
   e.  To rent Rent buildings, refrigeration facilities, or freezer facilities, or acquire equipment if necessary, to expand processing capacity, including mobile slaughter or refrigeration units used exclusively for meat or poultry processing.
   4.  3.  The authority, in consultation with the department, shall establish eligibility criteria for the program by rule. The eligibility criteria must include all of the following:
   a.  The business must be located in this state.
   b.  The business must not have been subject to any regulatory enforcement action related to federal, state, or local environmental, worker safety, food processing, or food safety laws, rules, or regulations within the last five years.
   c.  The business must only employ individuals legally authorized to work in the state.
   d.  The business must not currently be in bankruptcy.
   e.  The business must employ less than seventy-five full-time, nonseasonal individuals.
   5.  4.  A An eligible business seeking financial assistance under this section shall make application to the authority department in the manner and on forms prescribed by the authority by rule department.
   6.  5.  Applications for financial assistance under this section shall be accepted during one or more annual application periods to be determined by the authority by rule established by the department. Upon reviewing and scoring all applications that are received during an application period, and subject to funding the availability of moneys, the authority department may, in consultation with the department, award financial assistance to eligible businesses. A financial assistance award shall not exceed the amount of eligible project costs included in the eligible business’s application. Priority shall be given to an eligible businesses whose business describing a proposed projects project under subsection 3 will 2 that is most likely to do any one or more of the following:
   a.  Create new jobs.
   b.  Create or expand opportunities for local small-scale farmers to market processed meat under private labels.
   c.  Provide greater flexibility or convenience for local small-scale farmers to have animals processed.
   7.  6.  A An eligible business that is awarded financial assistance under this section may apply for financial assistance under other programs administered by the authority department.
   8.  The authority shall, in consultation with the department, adopt rules pursuant to chapter 17A to administer this section.
    Sec. 3.  Section 159.20, subsection 2, Code 2024, is amended to read as follows:
   2.  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 programs that advance the purchasing food items of agricultural commodities produced on Iowa farms and Iowa products that originate as an agricultural commodity commodities produced on Iowa farms under this title, including chapter 187.
    Sec. 4.  Section 159.20, subsection 3, unnumbered paragraph 1, Code 2024, is amended to read as follows:
   As used in this subchapter section:
    Sec. 5.  Section 159.28, Code 2024, is amended to read as follows:
   159.28  Choose Iowa promotional program.
   1.  The department shall establish and administer a choose Iowa promotional program to advertise for retail sale on a retail basis a food item that originates as an agricultural commodity produced on an Iowa farm, and an Iowa product that may include any of the following:
   a.  An agricultural commodity produced on an Iowa farm, except that it may be prepared for sale by washing or packaging in this state.
   b.  A product, if it is An agricultural commodity processed in this state and any of its ingredients, if its components originate as an agricultural commodity produced on an Iowa farm.
   2.  a.  The department may adopt rules further defining an Iowa farm, Iowa agricultural commodity, and Iowa product; and describing how an Iowa agricultural commodity originates on an Iowa farm.
   b.  The department may adopt rules providing for the acceptable use of ingredients originating a component that originates from an agricultural commodities commodity not produced on an Iowa farms farm. In adopting the rules, the department may consider whether the ingredient component is an incidental additive or other component that the department determines is or insignificant part of an Iowa product.
    Sec. 6.  Section 159.29, subsections 1 and 5, Code 2024, are amended to read as follows:
   1.  As part of the choose Iowa promotional program, the department may establish a choose Iowa logo to identify a food item originating as an agricultural commodity produced on an Iowa farm an Iowa product.
   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 product.
   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 agricultural commodity, component, or product.
    Sec. 7.  Section 159.31, subsections 1, 2, and 3, Code 2024, are amended to read as follows:
   1.  A choose Iowa fund is established created 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 159.30 187.303, 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 administer the programs created in this subchapter as determined and directed by the department, and shall not require further special authorization by the general assembly.
    Sec. 8.  Section 159.31A, Code 2024, is amended to read as follows:
   159.31A  Dairy innovation fund and revitalization program.
   1.  As used in this section unless the context otherwise requires:
   a.  “Financial assistance” means assistance provided only from the moneys and assets legally available to the department pursuant to this section and includes assistance in the form of grants, low-interest loans, and forgivable loans.
   b.  “Fund” means the dairy innovation fund.
   c.  “Located in” means the place or places at which a business’s operations are located and where at least ninety-eight percent of the business’s employees work, or where employees that are paid at least ninety-eight percent of the business’s payroll work.
   d.  “Program” means the dairy innovation program.
   2.  a.  The fund is created in the state treasury under the control of the department and consists of any moneys appropriated to the fund by the general assembly and any other moneys available to or obtained or accepted by the department for placement in the fund. Moneys in the fund are appropriated to the department to award financial assistance as provided under the program. The department shall use any moneys specifically appropriated for purposes of this section only for the purposes of the program.
   b.  Notwithstanding section 8.33, moneys in the fund that remain unencumbered or unobligated at the close of the fiscal year shall not revert but shall remain available for expenditure for the purposes designated until the close of the succeeding fiscal year.
   1.  A dairy innovation and revitalization program is created within the department. The purpose of the program is to promote the development, modernization, and expansion of this state’s dairy industry.
   3.  2.  The In administering the program, the department shall establish and administer the program for the purpose of awarding award financial assistance to eligible businesses engaged in to support projects that do one or more of the following:
   a.  Expand or refurbish existing milk plants or establish a new milk plant, operating pursuant to a permit issued pursuant to section 192.111 or 194.3A.
   b.  Expand or refurbish existing mobile dairy processing units, or establish new mobile dairy processing units.
   c.  Rent buildings, refrigeration facilities, or freezer facilities, or equipment necessary to expand dairy processing capacity, including mobile dairy or refrigeration units used exclusively for dairy processing.
   d.  Incorporate methods and technologies that reduce farm labor associated with milk production and storage, including but not limited to the use of robotics and processes or systems that operate using computerized equipment or machinery.
   4.  3.  The department shall establish eligibility criteria for the program by rule. The eligibility criteria must include all of the following:
   a.  The business must be located in this state.
   b.  The business must not have been subject to any regulatory enforcement action related to federal, state, or local environmental, worker safety, food processing, or food safety laws, rules, or regulations within the last five years.
   c.  The business must only employ individuals legally authorized to work in this state.
   d.  The business must not currently be in bankruptcy.
   e.  The business must employ less than fifty individuals.
   5.  4.  A An eligible business seeking financial assistance under this section shall make application to the department in the manner and on forms prescribed by the department by rule.
   6.  5.  Applications for financial assistance under this section shall be accepted during one or more annual application periods to be determined established by the department by rule. Upon reviewing and scoring all applications that are received during an application period, and subject to funding the availability of moneys, the department may award financial assistance to eligible businesses. A financial assistance award shall not exceed the amount of eligible project costs included in the eligible business’s application. Priority shall be given to eligible businesses whose proposed project or projects under subsection 3 will 2 are most likely to do any one or more of the following:
   a.  Create new jobs.
   b.  Create or expand opportunities for local small-scale milk producers to market pasteurized milk and milk products under private labels.
   c.  Provide greater flexibility or convenience for local small-scale farmers to have milk processed.
   d.  Reduce labor associated with the on-farm production and storage of milk.
   7.  6.  A An eligible business that is awarded financial assistance under this section may apply for financial assistance under other programs administered by the authority department.
   8.  The department shall adopt rules pursuant to chapter 17A to administer this section.
    Sec. 9.  NEW SECTION.  187.101  Short title.
   This chapter shall be known and may be cited as the “Choose Iowa Act”.
    Sec. 10.  NEW SECTION.  187.102  Definitions.
   As used in this chapter, unless the context otherwise requires:
   1.  “Agricultural commodity” means an animal or plant, or raw material originating from an animal or plant.
   2.  “Component” means an agricultural commodity that is combined to form a product during processing.
   3.  “Department” means the department of agriculture and land stewardship.
   4.  “Farm” means land and associated structures used to produce an agricultural commodity.
   5.  a.  “Financial assistance” means support provided by the department to an eligible business under this chapter from moneys or other assets legally available to the department.
   b.  “Financial assistance” includes any form of grant, low-interest loan, or forgivable loan.
   6.  “Food item” means an agricultural commodity, or an item processed from an agricultural commodity, that is fit for human consumption.
   7.  “Fund” means the choose Iowa fund created in section 187.201.
   8.  “Horticulture item” means any of the following:
   a.  A nursery, floral, or greenhouse plant.
   b.  A product processed from a nursery, floral, or greenhouse plant, including a seed, rooting, cutting, tissue culture, seedling, or other propagation material.
   9.  “Located in” means the place or places at which a business’s operations are located and where at least ninety-eight percent of the business’s employees work, or where employees that are paid at least ninety-eight percent of the business’s payroll work.
   10.  “Natural fiber item” means fiber originating from an agricultural commodity for use in processing, including manufacturing into a textile, apparel, or other similar product.
   11.  “Process” means to prepare a product that includes an agricultural commodity alone or as a component.
   12.  a.  “Product” means an agricultural commodity that in its raw or processed state is moveable at the time of its retail sale.
   b.  “Product” includes but is not limited to a food item, horticulture item, or natural fiber item.
    Sec. 11.  NEW SECTION.  187.103  Administration.
   The department shall adopt all rules under chapter 17A as it determines necessary or desirable to administer this chapter.
    Sec. 12.  NEW SECTION.  187.321  Value-added agricultural grant program.
   A value-added agricultural grant program is created within the department. The purpose of the program is to identify, evaluate, and support projects and services that add value to agricultural commodities produced on Iowa farms, including by supporting new technologies and marketing strategies.
    Sec. 13.  REPEAL.  Sections 159.26 and 159.27, Code 2024, are repealed.
    Sec. 14.  TRANSFER OF MONEYS.
   1.  Not later than June 30, 2024, the unencumbered or unobligated balances in all of the following funds shall be transferred to the choose Iowa fund created in section 159.31 as follows:
   a.  (1)  The butchery innovation and revitalization fund created in section 15E.370.
   (2)  The economic development authority shall retain any encumbered or obligated moneys in the fund to wind down the authority’s administration of the butchery innovation and revitalization program.
   b.  The dairy innovation fund created in section 159.31A.
   2.  Not later than June 30, 2024, any moneys appropriated to the department of agriculture and land stewardship that the department has not expended as required to support a value added agriculture grant program shall be transferred to the choose Iowa fund, including moneys appropriated in 2022 Iowa Acts, chapter 1147, section 12, and 2023 Iowa Acts, chapter 109, section 4, subsection 9.
    Sec. 15.  WINDING DOWN PROVISIONS.  The economic development authority shall only use moneys in the butchery innovation and revitalization fund created in section 15E.370 to wind down its administration of the butchery innovation and revitalization fund and program created in section 15E.370.
    Sec. 16.  TRANSITION PROVISIONS.
   1.  Any promulgated administrative decision, including a rule, regulation, form, order, or directive, by the economic development authority governing the butchery innovation and revitalization program created in section 15E.370 and transferred in this division of this Act to the department of agriculture and land stewardship, and in effect on June 30, 2024, shall continue in full force and effect until amended, repealed, or supplemented by affirmative action of the department of agriculture and land stewardship.
   2.  The terms or conditions of any financial assistance awarded, or contract entered into, as of June 30, 2024, by the economic development authority governing the butchery innovation and revitalization program created in section 15E.370 and transferred in this division of this Act to the department of agriculture and land stewardship, and in effect on June 30, 2024, shall continue in full force and effect pursuant to the terms of the award or contract.
   3.  Any legal action, including an administrative hearing, cause of action, or statute of limitation relating to the economic development authority governing the butchery innovation and revitalization program created in section 15E.370 and transferred to the department of agriculture and land stewardship, and in effect on June 30, 2024, shall not be affected as a result of the transfer, except that the department shall be regarded as the authority’s successor in interest.
    Sec. 17.  CODE EDITOR DIRECTIVE.
   1.  The Code editor is directed to make the following transfers:
   a.  Section 15E.370 to 187.311.
   b.  Section 159.28 to 187.301.
   c.  Section 159.29 to 187.302.
   d.  Section 159.30 to 187.303.
   e.  Section 159.31 to 187.201.
   f.  Section 159.31A to 187.313.
   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. 18.  DIRECTIONS TO CODE EDITOR —— SUBCHAPTERS AND PARTS.  The Code editor is directed to divide the provisions of chapter 187, as amended, enacted, or transferred in this division of this Act, into subchapters and parts as follows:
   1.  Subchapter I, including sections 187.101 through 187.103.
   2.  Subchapter II, including section 187.201.
   3.  Subchapter III, as follows:
   a.  Part 1, including sections 187.301 through 187.303.
   b.  Part 2, including sections 187.311 and 187.313.
   c.  Part 3, including section 187.321.
    Sec. 19.  EFFECTIVE DATE.
   1.  Except as provided in subsection 2, this division of this Act takes effect July 1, 2024.
   2.  The following sections of this division of this Act, being deemed of immediate importance, take effect upon enactment:
   a.  The section that provides for the transfer of moneys.
   b.  The section that provides for the transition of administrative decisions, financial assistance or contracts, or legal action.
   c.  The section that provides for the winding down of the butchery innovation and revitalization fund and program created in section 15E.370.
DIVISION III
COMMERCIAL ESTABLISHMENTS

    Sec. 20.  Section 162.2, subsection 8, Code 2024, is amended to read as follows:
   8.  “Commercial breeder” means a person, engaged in the business of breeding dogs or cats, who sells, exchanges, or leases dogs or cats in return for consideration, or who offers to do so, whether or not the animals are raised, trained, groomed, or boarded by the person. A person who owns or harbors three or fewer breeding males or females is not a commercial breeder. However, a person who breeds any number of breeding male or female greyhounds for the purposes of using them for pari-mutuel wagering at a racetrack as provided in chapter 99D shall be considered a commercial breeder irrespective of whether the person sells, leases, or exchanges the greyhounds for consideration or offers to do so.
    Sec. 21.  Section 162.2B, subsection 1, paragraph b, Code 2024, is amended to read as follows:
   b.  For the issuance or renewal of a state license or permit, one hundred seventy-five dollars. However, a commercial breeder who owns, keeps, breeds, or transports a greyhound dog for pari-mutuel wagering at a racetrack as provided in chapter 99D shall pay a different fee for the issuance or renewal of a state license as provided in rules adopted by the department.
    Sec. 22.  Section 162.10A, subsection 2, Code 2024, is amended to read as follows:
   2.  a.  Except as provided in paragraph “b” or “c”, a commercial establishment shall comply with rules that the department adopts to implement subsection 1. A commercial establishment shall be regulated under this paragraph “a” unless the person is a state licensee as provided in paragraph “b” or a permittee as provided in paragraph “c” “b”.
   b.  A state licensee who is a commercial breeder owning, breeding, transporting, or keeping a greyhound dog for pari-mutuel wagering at a racetrack as provided in chapter 99D may be required to comply with different rules adopted by the department.
   c.  b.  A permittee is not required to comply with rules that the department adopts to implement a standard of care as provided in subsection 1 for state licensees and registrants. The department may adopt rules regulating a standard of care for a permittee, so long as the rules are not more restrictive than required for a permittee under the Animal Welfare Act. However, the department may adopt prescriptive rules relating to the standard of care. Regardless of whether the department adopts such rules, a permittee meets the standard of care required in subsection 1 if it voluntarily complies with rules applicable to state licensees or registrants. A finding by the United States department of agriculture that a permittee complies with the Animal Welfare Act is not conclusive when determining that the permittee provides a standard of care required in subsection 1.
    Sec. 23.  Section 717B.3, subsection 2, paragraph a, subparagraph (2), subparagraph divisions (a) and (b), Code 2024, are amended to read as follows:
   (a)  A state licensee or registrant operating pursuant to section 162.10A, subsection 2, paragraph “a” or “b”.
   (b)  A permittee operating pursuant to section 162.10A, subsection 2, paragraph “c” “b”.
DIVISION IV
GRADE “A” MILK

    Sec. 24.  Section 192.101A, Code 2024, is amended by adding the following new subsections:
   NEW SUBSECTION.  1A.  “Department” means the department of agriculture and land stewardship.
   NEW SUBSECTION.  5.  “Secretary” means the secretary of agriculture.
    Sec. 25.  Section 192.109, Code 2024, is amended to read as follows:
   192.109  Certification of grade “A” label.
   The department of agriculture and land stewardship shall annually biennially conduct a survey and based on that survey certify all milk labeled grade “A” pasteurized and grade “A” raw milk for pasteurization, and, in. In the event that a survey shows the requirements for production, processing, and distribution for such grade are not being complied with, the that fact thereof shall be certified by the department to the secretary of agriculture who shall proceed with the provisions of section 192.107 for suspending the permit of the violator or who, if the secretary did not issue such permit, shall withdraw the grade “A” declared on the label.
    Sec. 26.  Section 192.111, subsection 1, paragraph a, subparagraph (5), Code 2024, is amended to read as follows:
   (5)  A milk grader which must obtain a milk grader permit and pay a license permit fee not greater than twenty dollars.
    Sec. 27.  Section 192.116, Code 2024, is amended to read as follows:
   192.116  Bacteriologists.
   The department of agriculture and land stewardship may employ dairy specialists or bacteriologists who shall devote their full time to the improvement of sanitation in the production, processing, and marketing of dairy products. Said The dairy specialists and bacteriologists shall have qualifications as to education and experience and such other requirements as the secretary may require.
    Sec. 28.  Section 192.118, subsection 1, Code 2024, is amended to read as follows:
   1.  To ensure uniformity in the tests and reporting, an employee certified by the United States public health service of the bacteriological laboratory of the department shall annually certify, in accordance with rules adopted by the department incorporating or incorporating by reference the federal publication entitled “Evaluation of Milk Laboratories”, all laboratories doing work in the sanitary quality of milk and dairy products for public report. The approval by the department shall be based on the evaluation of these laboratories as to personnel training, laboratory methods used, and reporting. The results on tests made by approved laboratories shall be reported to the department on request, on forms prescribed by the secretary of agriculture, and such reports may be used by the department.
DIVISION V
FERTILIZERS AND SOIL CONDITIONERS

    Sec. 29.  Section 200.3, subsection 29, Code 2024, is amended to read as follows:
   29.  The term “unmanipulated manures” means any substances composed primarily of excreta, plant remains, or mixtures of such substances which have not been processed in any manner other than dewatering.
    Sec. 30.  EFFECTIVE DATE.  This division of this Act, being deemed of immediate importance, takes effect upon enactment.
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 the administration of a number of programs and regulations by the department of agriculture and land stewardship (DALS). Specifically, the bill addresses the promotion of the native horse racing industry by providing for the qualification of Iowa-foaled horse breeds; agricultural marketing, by revising a number of existing programs such as the choose Iowa promotional program and choose Iowa fund, the butchery innovation and revitalization fund and program, the dairy innovation program and fund, and the value-added agricultural grant program; the regulation of commercial establishments that keep certain nonagricultural animals for commercial purposes, by eliminating special requirements related to greyhound racing; and the regulation of permittees authorized to engage in the handling of grade “A” milk and related dairy products.
   IOWA-FOALED HORSES. DALS regulates the status and care of race horses involved in pari-mutual wagering conducted by persons licensed by the racing and gaming commission to operate racetracks and manage associated purses. There are three breeds of horses involved in such racing, including thoroughbred horses, quarter horses, and standardbred horses. For at least one race of each racing day, either a race must be limited to Iowa-foaled horses or alternatively Iowa-foaled horses must be given a weight advantage (Code section 99D.22). At least 20 percent of all net purse moneys distributed to each breed must be awarded in the form of Iowa breeder awards or purse supplements to Iowa breeders. One criteria used to determine a foal’s status as Iowa bred occurs in cases in which the foal’s brood mare was bred by a stallion not recognized by DALS as an Iowa registered stallion and was not bred back to an Iowa registered stallion. In that case, the brood mare must have continuous Iowa residency from December 31 until the foal is inspected. The bill provides that for thoroughbred horses that beginning date is moved back to December 15, and for quarter horses and standardbred horses that beginning date is moved forward to January 31.
   AGRICULTURAL MARKETING —— CHOOSE IOWA PROMOTIONAL PROGRAM AND CHOOSE IOWA PROMOTIONAL FUND. In 2022, the general assembly established the choose Iowa promotional program (choose Iowa program) and choose Iowa fund administered by DALS (2022 Iowa Acts, chapter 1152). The stated purpose of the choose Iowa program and fund is to provide consumers a choice to purchase a food item originating as an agricultural commodity (commodity) produced on an Iowa farm or a food item processed in Iowa using the commodity as an ingredient (Code sections 159.26 through 159.31). As part of the choose Iowa program, DALS may establish a choose Iowa logo (logo) and register the logo for legal protection with the state or the United States (e.g., by trademark or copyright). DALS may also enter into a licensing agreement with a person who applies to use the logo when selling a food item on a retail basis. A choose Iowa fund was established to finance the program. The fund includes fees paid by licensees and any moneys appropriated by the general assembly. The bill uses the term “product” to describe both raw and processed items (i.e., moveable goods) that may be sold at retail using the logo. It expands the program to include horticulture items (a nursery, floral, or greenhouse plant) and natural fiber items (e.g., wool). In all cases, the product must be a commodity produced on an Iowa farm, a commodity produced on an Iowa farm and processed in this state, or a commodity produced on an Iowa farm and used as a component in a product processed in this state. The bill changes the fund’s name to the choose Iowa promotional fund.
   AGRICULTURAL MARKETING —— BUTCHERY AND DAIRY INNOVATION FUNDS AND PROGRAMS. In 2021, the general assembly created a butchery innovation and revitalization fund and program (2021 Iowa Acts, chapter 175) administered by the economic development authority (IEDA) under Code section 15E.370. Its purpose is to provide financial assistance to small-scale meat processing businesses and locker plants. In 2023, the general assembly created a dairy innovation fund and program (2023 Iowa Acts, chapter 101) administered by DALS under Code section 159.31A. Its purpose is to provide financial assistance to small-scale businesses engaged in dairy processing. Both the funds and programs share a number of common provisions. Each provide financing to an eligible business in the form of a grant, low-interest loan, or forgivable loan, and each provide similar criteria for participation, including a limit on the number of individuals that may be employed by the business. The bill eliminates both the butchery innovation and revitalization fund and dairy innovation fund. It provides that DALS rather than IEDA will administer the butchery innovation and revitalization program. It also changes the name of the dairy innovation program to the dairy innovation and revitalization program.
   AGRICULTURAL MARKETING —— VALUE-ADDED AGRICULTURAL GRANT PROGRAM. The bill establishes the value-added agricultural grant program. The purpose of the program is to support projects and services that add value to agricultural commodities produced on Iowa farms (e.g., by processing). The program has been enacted and supported in recent DALS general appropriations Acts but not codified (see 2021 Iowa Acts, chapter 143, section 12; 2022 Iowa Acts, chapter 1147, section 12; and 2023 Iowa Acts, chapter 109, section 4).
   AGRICULTURAL MARKETING —— CONSOLIDATION OF FUNDS AND PROGRAMS. The bill consolidates a number of agricultural marketing funds and programs in Code chapters 15E and 159 under new Code chapter 187 administered by DALS. The new Code chapter is divided into three subchapters. Subchapter I provides three new Code sections, including Code section 187.101 that names the Code chapter, “Choose Iowa Act”; Code section 187.102 that combines definitions taken from other Code sections; and Code section 187.103 authorizing DALS to adopt rules necessary to administer the Code chapter. Subchapter II includes amended Code section 159.31, establishing the choose Iowa fund (transferred to Code section 187.201) which will support all of the Code chapter’s marketing programs. Finally, subchapter III includes three parts. Part 1 includes amended Code section 159.28 establishing the choose Iowa promotional program (transferred to Code section 187.301), Code section 159.29 providing for the choose Iowa logo (transferred to Code section 187.302), and Code section 159.30 providing for license agreements and fees (transferred to Code section 187.303). Part 2 includes amended Code section 15E.370 providing for the butchery innovation and revitalization program (transferred to Code section 187.311) and amended Code section 159.31A creating the dairy innovation and revitalization program (transferred to Code section 187.313. Part 3 includes new Code section 187.321 providing for the value-added agricultural grant program. The bill also provides for transfer of moneys to the choose Iowa fund from the eliminated butchery innovation and revitalization fund and dairy innovation fund. The choose Iowa fund also includes any moneys that had been appropriated to support the value-added agricultural grant program. Finally, the bill includes provisions allowing IEDA to wind up its affairs, and transition provisions.
   REGULATION OF COMMERCIAL ESTABLISHMENTS. DALS regulates commercial establishments that keep certain nonagricultural animals for commercial purposes on a nonprofit or profit basis, including an animal shelter, pound, or research facility issued a certificate of registration (Code sections 162.3, 162.4, and 162.4A); a pet shop, boarding kennel, or commercial kennel issued a state license (Code sections 162.5, 162.5A, and 162.6); or a dealer, commercial breeder, or public auction who may elect to be either issued a state license or a permit. A permit is issued if the person is licensed under the federal Animal Welfare Act (7 U.S.C. ch. 54) by the United States department of agriculture (Code sections 162.7, 162.8, and 162.9A). Code chapter 162 provides special regulations applicable to a greyhound dog if used for pari-mutuel wagering at a licensed racetrack (racing greyhound) (Code chapter 99D). The bill eliminates those special provisions. Currently, a person is regulated as a commercial breeder and is subject to license or permit requirements if the person breeds dogs or cats in exchange for payment with an exception that applies to a person who keeps three or fewer breeding greyhounds. The exception does not apply to a person who breeds racing greyhounds (Code section 162.2). A person applying for a state license or permit is required to pay DALS $175 with an exception for a person who keeps racing greyhounds (Code section 162.2B). A person who keeps greyhounds must be issued a state license and is subject to a fee established by DALS rule which is currently $40 (21 IAC 67.17). A commercial establishment is required to comply with standard of care requirements including providing a kept animal with adequate feed, adequate water, housing facilities, sanitary control, grooming practices, and veterinary care as required by DALS rule (Code section 162.10A). A state licensee who is a commercial breeder keeping a racing greyhound may be required to comply with different rules adopted by the department.
   GRADE “A” MILK REGULATION. Iowa has adopted by reference the model “Grade ‘A’ Pasteurized Milk Ordinance” as part of its “Iowa Grade ‘A’ Milk Inspection Law” (Code chapter 192). The bill makes several editorial changes to improve the Code’s readability, including by defining the terms “department” as the department of agriculture and land stewardship and “secretary” as the secretary of agriculture, and using those terms consistently throughout the Code chapter. In order to handle raw milk for pasteurization and processing, a person must be issued a permit by DALS (Code section 192.107; 21 IAC 68.2). Each year, DALS is required to conduct a survey of permittees to verify that the milk they handle meets requirements to be labeled grade “A” for pasteurization. The bill provides that the survey is to be conducted every other year. DALS may suspend or revoke a permit for a person who does not comply with the sanitary requirements.
   UNMANIPULATED MANURES. The bill amends a provision in Code chapter 200, which provides for the regulation of the sale of fertilizers and soil conditioners by DALS. Specifically, the bill amends the defined term “unmanipulated manures” which means any substances composed of excreta or plant remains that have not been processed. The bill provides that the term includes such substances processed by dewatering. This provision takes effect upon enactment.
   EFFECTIVE DATES. The bill takes effect July 1, 2024, except for three sections that take effect upon enactment. The sections all relate to agricultural marketing and include provisions authorizing the transfer of moneys, winding down affairs by IEDA, and an administrative transition period.