S.F. 311 DIVISION I 1 REGULATION OF COMMERCIAL ESTABLISHMENTS 2 Section 1. Section 162.2, subsection 19, Code 2023, is 3 amended by striking the subsection and inserting in lieu 4 thereof the following: 5 19. “Pet shop” means a facility where vertebrate animals, 6 excluding fish, not born and reared on the facility’s premises 7 are bought, sold, exchanged, or offered for sale or exchange to 8 the public, at retail. “Pet shop” does not include a facility 9 if one of the following applies: 10 a. The facility receives less than one thousand dollars from 11 the sale or exchange of vertebrate animals, excluding fish, 12 during a twelve-month period. 13 b. The facility sells or exchanges less than twelve 14 vertebrate animals, excluding fish, during a twelve-month 15 period. 16 Sec. 2. Section 162.2A, subsection 3, paragraph d, Code 17 2023, is amended to read as follows: 18 d. The person’s An official government-issued photo 19 identification number of the person . Notwithstanding chapter 20 22 , the department shall keep the person’s tax identification 21 number confidential except for purposes of tax administration 22 by the department of revenue, including as provided in section 23 421.18 . 24 DIVISION II 25 GRAIN REGULATION 26 PART A 27 GRAIN DEALERS 28 Sec. 3. Section 203.1, Code 2023, is amended by adding the 29 following new subsection: 30 NEW SUBSECTION . 12A. “Scale weight ticket” means the same 31 as defined in section 203C.1. 32 Sec. 4. Section 203.5, subsection 8, paragraph a, Code 2023, 33 is amended to read as follows: 34 a. The applicant has caused liability to the Iowa grain 35 -1- LSB 1218SV (2) 90 da/ns 1/ 17

S.F. 311 depositors and sellers indemnity fund in regard to a license 1 issued under this chapter or chapter 203C , and the liability 2 has not been discharged, settled, or satisfied. 3 Sec. 5. Section 203.11, subsection 2, paragraph a, 4 subparagraph (3), Code 2023, is amended to read as follows: 5 (3) Uses a scale weight ticket or credit-sale contract in 6 violation of this chapter or a requirement established by the 7 department under this chapter . 8 Sec. 6. Section 203.15, subsection 2, paragraph f, Code 9 2023, is amended to read as follows: 10 f. The duration of the credit-sale contract, which shall 11 not exceed twelve fifteen months from the date the contract is 12 executed. 13 Sec. 7. Section 203.17, Code 2023, is amended to read as 14 follows: 15 203.17 Documents and records. 16 1. The department may adopt rules specifying the form, 17 content, use, and maintenance of documents issued by a grain 18 dealer under this chapter including but not limited to scale 19 weight tickets, settlement sheets, daily position records, and 20 credit-sale contracts. The department may adopt rules for 21 both printed and electronic documents, including rules for 22 the transmission, receipt, authentication, and archiving of 23 electronically generated or stored documents. 24 2. All scale weight ticket forms in the possession of a 25 grain dealer shall have been permanently and consecutively 26 numbered at the time of printing. A grain dealer shall 27 maintain an accurate record of all scale weight ticket numbers. 28 The record shall include the disposition of each numbered form, 29 whether issued, destroyed, or otherwise disposed of. 30 Sec. 8. Section 203.20, Code 2023, is amended to read as 31 follows: 32 203.20 Shrinkage adjustments —— disclosures —— penalties. 33 1. A person who, in connection with the receipt of 34 corn or soybeans grain for storage, processing, or sale, 35 -2- LSB 1218SV (2) 90 da/ns 2/ 17

S.F. 311 adjusts the scale weight of the grain to compensate for the 1 moisture content of the grain shall compute the amount of 2 the adjustment by multiplying the scale weight of the grain 3 by that factor which results in a rate of adjustment of one 4 and eighteen hundredths percent of weight per one percent of 5 moisture content. The use of person who uses any rate of 6 weight adjustment for moisture content other than the one 7 prescribed by this subsection is commits a fraudulent practice 8 as defined in section 714.8 . The person shall post on the 9 business premises in a conspicuous place notice of the rate 10 of adjustment for moisture content that is as prescribed by 11 this subsection . Failure The person who fails to make this 12 disclosure is commits a simple misdemeanor. 13 2. A person who, in connection with the receipt of grain for 14 storage, processing , or sale, adjusts the quantity of the grain 15 received to compensate for losses to be incurred during the 16 handling, processing, or storage of the grain shall post on the 17 business premises in a conspicuous place notice of the rate of 18 adjustment to be made for this shrinkage. Failure The person 19 who fails to make the required this disclosure is commits a 20 simple misdemeanor. 21 3. A person who adjusts the scale weight of corn or soybeans 22 both grain for moisture content and for handling, processing, 23 or storage losses may combine the two adjustment factors into 24 a single factor and may use this resulting factor to compute 25 the amount of weight adjustment in connection with storage, 26 processing, or sale transactions, provided that the person 27 shall post on the business premises in a conspicuous place a 28 notice that discloses the moisture shrinkage factor prescribed 29 by subsection 1 , the handling shrinkage factor to be imposed, 30 and the single factor that results from combining these 31 factors. Failure The person who fails to make the required 32 this disclosure is commits a simple misdemeanor. 33 PART B 34 WAREHOUSE OPERATORS 35 -3- LSB 1218SV (2) 90 da/ns 3/ 17

S.F. 311 Sec. 9. Section 203C.5, subsection 2, Code 2023, is amended 1 to read as follows: 2 2. a. The department may adopt rules specifying the 3 form, content, and use of documents issued by a warehouse 4 operator under this chapter including but not limited to scale 5 weight tickets, warehouse receipts, settlement sheets, and 6 daily position records. The department may adopt rules for 7 both printed and electronic documents, including rules for 8 the transmission, receipt, authentication, and archiving of 9 electronically generated or stored documents. 10 b. All scale weight ticket forms and warehouse receipt 11 forms in the possession of a warehouse operator shall have been 12 permanently and consecutively numbered at the time of printing. 13 A warehouse operator shall maintain an accurate record of 14 the numbers of these documents. The record shall include 15 the disposition of each form, whether issued, destroyed, or 16 otherwise disposed of. The department may by rule require this 17 use of prenumbered forms and recording for documents other than 18 scale weight tickets and warehouse receipts. 19 Sec. 10. Section 203C.6, subsection 8, paragraph a, Code 20 2023, is amended to read as follows: 21 a. The applicant has caused liability to the Iowa grain 22 depositors and sellers indemnity fund through operations under 23 a license issued under this chapter or chapter 203 , and the 24 liability has not been discharged, settled, or satisfied. 25 Sec. 11. Section 203C.17, subsections 1, 2, 3, 4, and 5, 26 Code 2023, are amended to read as follows: 27 1. Any grain which has been received at any Grain deposited 28 with a licensed warehouse operator for which the actual sale 29 price is has not been fixed and either proper documentation 30 made has not been furnished or payment has not been made shall 31 be construed to be grain held for storage within the meaning of 32 this chapter . Grain may be held considered stored grain and 33 may be retained in open storage or placed on under warehouse 34 receipt. A warehouse receipt shall be issued for all grain 35 -4- LSB 1218SV (2) 90 da/ns 4/ 17

S.F. 311 held in open storage within one year from the date of delivery 1 to the warehouse, unless the depositor has signed a statement 2 that the depositor does not desire a warehouse receipt. A The 3 licensed warehouse operator shall issue a warehouse receipt 4 shall be issued to the depositor upon request by the depositor. 5 The warehouse operator’s tariff shall apply for to any grain 6 that is retained in open storage or placed under warehouse 7 receipt as provided in section 203C.18 . 8 2. Bulk grain deposited with a licensed warehouse operator 9 for processing, cleaning, drying, shipping for the account of 10 the depositor , or any other purpose shall be removed within 11 thirty days from the date of deposit or such grain shall be 12 determined as considered stored grain and the . The warehouse 13 operator’s tariff charges shall apply to the bulk grain as 14 provided in section 203C.28 . 15 3. Grain received on deposited and subject to a scale weight 16 ticket which that fails to have the price fixed and properly 17 documented on the records of the licensed warehouse operator 18 shall be construed to be retained in open storage. 19 4. All bulk grain whether retained in open storage and 20 deposited subject to a scale weight ticket or having been 21 placed on under warehouse receipt is covered by the grain 22 depositors and sellers indemnity fund created in as provided in 23 chapter 203D . 24 5. Any grain which has been received at any An unlicensed 25 warehouse and for which the operator shall not retain deposited 26 bulk grain, if its actual sale price has not been fixed , and 27 payment for the bulk grain has not been made within thirty days 28 from receipt of the grain its date of deposit , unless covered 29 purchased by a credit-sale contract , shall be construed to be 30 unlawful storage within the meaning of this chapter . Bulk 31 grain received at any An unlicensed warehouse for any operator 32 who retains deposited bulk gain under any other purpose 33 circumstance must either be returned return the bulk grain to 34 the depositor , or disposed of dispose of the bulk grain by 35 -5- LSB 1218SV (2) 90 da/ns 5/ 17

S.F. 311 order of the depositor , within thirty days from date of actual 1 the deposit of the bulk grain. 2 Sec. 12. Section 203C.25, Code 2023, is amended to read as 3 follows: 4 203C.25 Shrinkage adjustments —— disclosures —— penalties. 5 1. A person who, in connection with the receipt of 6 corn or soybeans grain for storage, processing, or sale, 7 adjusts the scale weight of the grain to compensate for the 8 moisture content of the grain shall compute the amount of 9 the adjustment by multiplying the scale weight of the grain 10 by that factor which results in a rate of adjustment of one 11 and eighteen hundredths percent of weight per one percent of 12 moisture content. The use of person who uses any rate of 13 weight adjustment for moisture content other than the one 14 prescribed by this subsection is commits a fraudulent practice 15 as defined in section 714.8 . The person shall post on the 16 business premises in a conspicuous place notice of the rate 17 of adjustment for moisture content that is as prescribed by 18 this subsection . Failure The person who fails to make this 19 disclosure is commits a simple misdemeanor. 20 2. A person who, in connection with the receipt of grain for 21 storage, processing , or sale, adjusts the quantity of the grain 22 received to compensate for losses to be incurred during the 23 handling, processing, or storage of the grain shall post on the 24 business premises in a conspicuous place notice of the rate of 25 adjustment to be made for this shrinkage. Failure The person 26 who fails to make the required this disclosure is commits a 27 simple misdemeanor. 28 3. A person who adjusts the scale weight of corn or soybeans 29 both grain for moisture content and for handling, processing, 30 or storage losses may combine the two adjustment factors into 31 a single factor and may use this resulting factor to compute 32 the amount of weight adjustment in connection with storage, 33 processing, or sale transactions, provided that the person 34 shall post on the business premises in a conspicuous place a 35 -6- LSB 1218SV (2) 90 da/ns 6/ 17

S.F. 311 notice that discloses the moisture shrinkage factor prescribed 1 by subsection 1 , the handling shrinkage factor to be imposed, 2 and the single factor that results from combining these 3 factors. Failure The person who fails to make the required 4 this disclosure is commits a simple misdemeanor. 5 Sec. 13. Section 203C.36, subsection 2, paragraph a, 6 subparagraph (3), Code 2023, is amended to read as follows: 7 (3) Uses a scale weight ticket, warehouse receipt, or 8 other document in violation of this chapter or requirements 9 established by the department under this chapter . 10 PART C 11 INDEMNITY FUND 12 Sec. 14. Section 203D.1, Code 2023, is amended by adding the 13 following new subsection: 14 NEW SUBSECTION . 14A. “Scale weight ticket” means the same 15 as defined in section 203C.1. 16 DIVISION III 17 WEIGHTS AND MEASURES 18 PART A 19 LICENSING, INSPECTIONS, AND FEES 20 Sec. 15. Section 214.2, Code 2023, is amended to read as 21 follows: 22 214.2 License. 23 1. A person who uses or displays for use any commercial 24 weighing and measuring device , as defined in section 215.1 , 25 shall secure must be issued a license from by the department 26 for that device . The department shall issue the license after 27 inspecting the device. 28 2. a. Except as provided in paragraph “b” , a license issued 29 under subsection 1 shall expire on December 31 of each year. 30 b. A license issued under subsection 1 for a motor fuel pump 31 shall expire on June 30 of each year. 32 Sec. 16. Section 214.3, subsection 1, Code 2023, is amended 33 by striking the subsection. 34 Sec. 17. Section 214.3, subsection 2, Code 2023, is amended 35 -7- LSB 1218SV (2) 90 da/ns 7/ 17

S.F. 311 to read as follows: 1 2. The A license inspection fee is imposed on a person 2 who uses or displays for use a commercial weighing and 3 measuring device . The license fee is due the day the device 4 is placed into service department issues the license . A 5 license inspection fee shall be charged to the person owning 6 or operating a commercial weighing and measuring device 7 inspected The amount of the license fee shall be calculated in 8 accordance with the class or section for devices as established 9 by handbook 44 of the United States national institute of 10 standards and technology. 11 Sec. 18. Section 214.11, subsection 1, Code 2023, is amended 12 to read as follows: 13 1. The department shall provide for annual biennial 14 inspections of all motor fuel pumps, including but not limited 15 to motor fuel blender pumps, licensed under this chapter . 16 Inspections shall be for the purpose of determining the 17 accuracy and correctness of motor fuel pumps. For that purpose 18 the department’s inspectors may enter upon the premises of any 19 a wholesale dealer or a retail dealer motor fuel site . 20 Sec. 19. Section 215.2, Code 2023, is amended to read as 21 follows: 22 215.2 Special inspection tests —— request —— fees. 23 1. The owner or servicer of a commercial weighing and 24 measuring device may request the department conduct a special 25 inspection test of the device to determine its accuracy and 26 correctness. 27 2. The fee for special tests, including but not limited to, 28 using state inspection equipment, for the calibration, testing, 29 certification, or repair conducting a special inspection test 30 of a commercial weighing and measuring device shall be paid 31 by the owner or servicer or person requesting the special 32 inspection test in accordance with the following schedule: 33 1. a. Class S, scales, seventy-five dollars per hour. 34 2. b. Class M, meters, fifty-two dollars and fifty cents 35 -8- LSB 1218SV (2) 90 da/ns 8/ 17

S.F. 311 per hour. 1 Sec. 20. REPEAL. Section 215.12, Code 2023, is repealed. 2 PART B 3 MOTOR FUEL STANDARDS AND CLASSIFICATIONS 4 Sec. 21. Section 159A.6, subsection 1, paragraph c, Code 5 2023, is amended to read as follows: 6 c. Develop standards for decals required pursuant to 7 section 214A.16 214A.21A , which shall be designed to promote 8 the advantages of using renewable fuels. The standards may be 9 incorporated within a model decal adopted by the office. 10 Sec. 22. Section 214A.1, subsection 2, Code 2023, is amended 11 to read as follows: 12 2. “ASTM international” means a nonprofit organization, 13 previously named the American society for testing and materials 14 international. 15 Sec. 23. Section 214A.1, Code 2023, is amended by adding the 16 following new subsections: 17 NEW SUBSECTION . 9A. “Coprocess” means to simultaneously 18 process a renewable biomass or a biointermediate with a fossil 19 fuel or other nonrenewable feedstock in the same unit or units 20 to produce a fuel that is partially derived from a renewable 21 biomass or biointermediate. 22 NEW SUBSECTION . 33A. a. “Renewable diesel” means a motor 23 fuel for use in an internal combustion engine and ignited by 24 pressure without the presence of an electric spark, which 25 is produced from nonfossil renewable resources, including 26 agricultural plants, animal fats, residue, and waste generated 27 from the production, processing, and marketing of agricultural 28 products, and other renewable resources. 29 b. “Renewable diesel” must meet the standards provided in 30 section 214A.2. 31 c. “Renewable diesel” does not include any of the following: 32 (1) Biodiesel. 33 (2) A fuel that has been coprocessed. 34 NEW SUBSECTION . 33B. “Renewable diesel blended fuel” means 35 -9- LSB 1218SV (2) 90 da/ns 9/ 17

S.F. 311 a blend of renewable diesel with petroleum-based diesel fuel, 1 biodiesel, or a combination of petroleum-based diesel fuel and 2 biodiesel, which meets the standards, including separately 3 the standard for its renewable diesel component, provided in 4 section 214A.2. 5 Sec. 24. Section 214A.2, subsection 4, Code 2023, is amended 6 by adding the following new paragraph: 7 NEW PARAGRAPH . c. (1) If the motor fuel is advertised 8 for sale or sold as renewable diesel or renewable diesel 9 blended fuel, the motor fuel must meet departmental standards 10 based in part or in whole on specifications adopted by ASTM 11 international for renewable diesel or renewable diesel blended 12 motor fuel, to every extent applicable, as determined by the 13 department subject to subparagraph (2). 14 (2) Renewable diesel must at least meet departmental 15 standards based in whole or in part on ASTM international 16 specification D975, or a successor ASTM international 17 specification, established by rule. The specification shall 18 apply to renewable diesel before it leaves its place of 19 manufacture. 20 Sec. 25. Section 214A.2, subsection 5, Code 2023, is amended 21 by adding the following new paragraph: 22 NEW PARAGRAPH . d. (1) Renewable diesel shall be classified 23 RD-100. 24 (2) Renewable diesel blended fuel shall be classified RD-xx 25 where “xx” is the volume percent of renewable diesel. 26 Sec. 26. Section 214A.2B, Code 2023, is amended to read as 27 follows: 28 214A.2B Laboratory for motor fuel and biofuels fuels, 29 biofuels, and renewable fuels . 30 A laboratory for motor fuel and biofuels is established at a 31 community college which is engaged in biofuels testing on July 32 1, 2007, and which testing includes but is not limited to The 33 Iowa central fuel testing laboratory at Iowa central community 34 college shall test motor fuels, biofuels, and renewable fuels, 35 -10- LSB 1218SV (2) 90 da/ns 10/ 17

S.F. 311 including but not limited to B-20 biodiesel fuel testing for 1 use by motor trucks and the ability of biofuels to meet ASTM 2 international standards . The laboratory shall conduct the 3 testing of motor fuel fuels sold in this state and biofuel 4 which is biofuels blended in with motor fuel fuels in this 5 state to ensure that the motor fuel or fuels, biofuels , and 6 renewable fuels meet the requirements departmental standards 7 in section 214A.2 . 8 PART C 9 CODE EDITOR DIRECTIVE 10 Sec. 27. CODE EDITOR DIRECTIVE. 11 1. The Code editor is directed to make the following 12 transfer: 13 Section 214A.16 to section 214A.21A. 14 2. The Code editor shall correct internal references in the 15 Code and in any enacted legislation as necessary due to the 16 enactment of this section. 17 DIVISION IV 18 WATER QUALITY 19 Sec. 28. Section 466B.43, subsection 6, Code 2023, is 20 amended to read as follows: 21 6. By October 1, 2019, and each October 1 thereafter of 22 each year , the division shall submit a report to the governor 23 and the general assembly itemizing expenditures, by hydrologic 24 unit code 8 watershed, under the programs , if any, during the 25 previous fiscal year , if any . 26 Sec. 29. Section 466B.44, subsection 5, Code 2023, is 27 amended to read as follows: 28 5. Notwithstanding any other provision in this section 29 to the contrary, beginning on July 1, 2018, the division 30 may use any amount available to support the water quality 31 urban infrastructure program to instead extend do any of the 32 following: 33 a. Extend and support the three-year data collection of 34 in-field agricultural practices project as enacted in 2015 Iowa 35 -11- LSB 1218SV (2) 90 da/ns 11/ 17

S.F. 311 Acts, ch. 132, §18 . 1 b. Support water quality agriculture infrastructure programs 2 created in section 466B.43. 3 Sec. 30. Section 466B.44, subsection 7, Code 2023, is 4 amended to read as follows: 5 7. By October 1, 2019, and by October 1 of each year 6 thereafter , the division shall submit a report to the governor 7 and the general assembly itemizing expenditures under the 8 program, if any, during the previous fiscal year. 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 relates to a number of regulations 13 and programs administered and enforced by the department of 14 agriculture and land stewardship (DALS). Specifically, the 15 bill amends provisions regulating commercial establishments 16 engaged in the transfer or use of vertebrate animals (animals) 17 other than agricultural animals, including animal shelters, 18 boarding kennels, commercial breeders, commercial kennels, 19 dealers, pet shops, pounds, public auctions, and research 20 facilities (Code chapter 162). The bill regulates grain 21 transactions including by grain dealers (dealers) and warehouse 22 operators (operators) (Code chapters 203 and 203C) and the 23 indemnification of losses by sellers or depositors from the 24 grain depositors and sellers indemnity fund (Code chapter 25 203D). The bill also regulates the commercial use of weights 26 and measures, including motor fuel pumps (fuel pumps) that are 27 part of motor fuel dispensers (dispensers), and types of motor 28 fuel advertised for sale (Code chapters 214, 214A, and 215), 29 including diesel fuel for use in certain internal combustion 30 engines. Finally, the bill provides for the expenditure of 31 moneys for surface water quality initiatives (initiatives) in 32 order to assess and reduce nutrients in this state’s watersheds 33 (Code chapter 466B) in conformance with the Iowa nutrient 34 reduction strategy (Code section 455B.171). 35 -12- LSB 1218SV (2) 90 da/ns 12/ 17

S.F. 311 COMMERCIAL ESTABLISHMENTS —— REGULATION. Under current law, 1 a business classified as a pet shop is a type of establishment 2 required to be annually licensed (Code section 162.5) and pay 3 an associated fee (Code section 162.2B). A business is not 4 regulated as a pet shop if, during the prior 12-month period, 5 the business either receives less than $500 or transfers 6 less than six animals. The bill doubles the exemption 7 qualifications to less than $1,000 or less than 12 animals 8 (amended Code section 162.2). 9 A person applying to be issued an authorization for the 10 operation of any commercial establishment must provide DALS 11 the person’s tax identification number. The bill eliminates 12 that requirement and instead requires the person to provide an 13 official government-issued photo identification of the person 14 (amended Code section 162.2A). 15 COMMERCIAL ESTABLISHMENTS —— PENALTY. A person who operates 16 a commercial establishment in violation of authorization 17 requirements is guilty of a simple misdemeanor (Code section 18 162.13). 19 GRAIN REGULATION —— BACKGROUND. As part of a grain 20 transaction, an operator issues a prenumbered scale 21 weight ticket to a depositor as evidence of stored grain. 22 Alternatively, the operator may issue a warehouse receipt as a 23 form which may be a document of title and therefore negotiable 24 (Code chapter 554, Art. 7). In order for a seller or depositor 25 to be indemnified for a loss by the fund, the dollar value of 26 a claim for transferred grain is based on either a warehouse 27 receipt or scale weight ticket (Code section 203D.6). 28 GRAIN REGULATION —— TERMS. Currently, several different 29 terms are used to describe the same item. The bill changes 30 the terms to be uniform, including “scale ticket” to “scale 31 weight ticket” and “Iowa grain depositors and sellers indemnity 32 fund” to “grain depositors and sellers indemnity fund”, which 33 are both defined (amended Code sections 203.1, 203.5, 203.11, 34 203.17, 203C.5, 203C.6, 203C.17, 203C.36, and 203D.1). 35 -13- LSB 1218SV (2) 90 da/ns 13/ 17

S.F. 311 GRAIN REGULATION —— CREDIT-SALE CONTRACT. A buyer and 1 seller of grain may execute a credit-sale contract, also known 2 as a price-later contract, for transfer of title, in which the 3 seller delivers the grain to the buyer who pays the seller 4 a price more than 30 days later (Code section 203.1). In 5 order to engage in these transactions, a buyer who is a grain 6 dealer must maintain a class 1 license requiring a net worth 7 of at least $75,000 (Code section 203.3(4)), the parties must 8 execute a contract form meeting statutory requirements (amended 9 Code section 203.15(2)), and the grain is not considered as 10 purchased grain covered by the grain depositors and sellers 11 indemnity fund (Code section 203D.6(4)). The bill extends the 12 maximum period of a credit-sale contract’s duration, requiring 13 later payment for the delivered grain, from 12 to 15 months 14 (amended Code section 203.15(2)). 15 GRAIN REGULATION —— GRAIN MOISTURE CONTENT. A person 16 receiving corn or soybeans as part of a transaction involving 17 storage, processing, or sale may adjust the scale weight to 18 account for moisture content (i.e., reducing the scale weight 19 by a special factor calculated for each 1 percent of moisture 20 content). The bill provides that the adjustment applies to all 21 grain in which there are standards established by the United 22 States department of agriculture (Code sections 203.1 and 23 203C.1 and amended Code sections 203.20 and 203C.25). 24 GRAIN REGULATION —— OPEN STORAGE. An operator may retain 25 delivered grain in open storage (meaning without issuing a 26 warehouse receipt or making a purchase) subject to certain 27 limitations. Grain subject to a scale weight ticket without 28 having the price fixed and documented by the operator is 29 considered to be retained in open storage. Currently, if 30 grain is retained in open storage, the operator must issue the 31 depositor a warehouse receipt within one year of the grain’s 32 delivery date, unless the depositor signs a statement refusing 33 it. The bill eliminates this requirement. Upon request, the 34 operator must still issue the depositor a warehouse receipt 35 -14- LSB 1218SV (2) 90 da/ns 14/ 17

S.F. 311 (amended Code section 203C.17). 1 GRAIN REGULATION —— PENALTIES. A person who violates Code 2 chapter 203 or 203C is guilty of a simple misdemeanor (Code 3 sections 203.11 and 203C.36). 4 WEIGHTS AND MEASURES. A person who uses or displays a 5 commercial weighing or measuring device (device) must be 6 licensed. The term of the license is 12 months. Generally, 7 the term is on a calendar year basis (January 1 to December 8 31) but for motor fuel pumps the term is on a fiscal year 9 basis (July 1 to June 30). A fee is required for the issuance 10 of the license and an inspection (license inspection fee) 11 first due when the device is placed into service. DALS is 12 expressly required to inspect motor fuel pumps each year. The 13 bill provides that the fee is for the issuance of the license 14 rather than the inspection, the license fee is due when the 15 license is issued, and that DALS must inspect motor fuel pumps 16 on a biennial basis (amended Code sections 214.2, 214.3, and 17 214.11). The bill also eliminates a requirement that persons 18 engaged in repairing scales must file a bond with the state 19 (repealed Code section 215.12). 20 WEIGHTS AND MEASURES —— MOTOR FUEL STANDARDS AND 21 CLASSIFICATIONS. Motor fuels include fossil (petroleum) based 22 gasoline and diesel fuel as well as certain biofuel components 23 derived from renewable (nonpetroleum) resources such as ethanol 24 classified as E-100 and biodiesel comprised of monoalkyl esters 25 of long-chain fatty acids and classified as B-100. Both types 26 of substances are used to produce renewable fuels (e.g., E-15 27 or B-5) subject to separate departmental standards based on 28 ASTM international (ASTM) specifications. The bill regulates 29 another liquid fuel referred to renewable diesel classified as 30 RD-100 that may be used as a motor fuel or a blending component 31 and classified as RD-xx. RD-100 is produced from nonfossil 32 renewable resources but is not biodiesel due to manufacturing 33 processes. Petroleum-based diesel fuel and RD-100 are subject 34 to the same ASTM specification D975 while B-100 is subject to 35 -15- LSB 1218SV (2) 90 da/ns 15/ 17

S.F. 311 ASTM specification D6751 (amended Code sections 214A.1 and 1 214A.2). 2 WEIGHTS AND MEASURES —— TESTING LABORATORY. The bill 3 expressly recognizes the Iowa central fuel testing laboratory 4 at Iowa central community college as the official laboratory 5 for testing motor fuels, biofuels, and renewable fuels (amended 6 Code section 214A.2B). 7 WEIGHTS AND MEASURES —— CODE EDITOR DIRECTIVE. The bill 8 transfers Code section 214A.16 from subchapter I to subchapter 9 II of Code chapter 214A. The Code section regulates a notice 10 required to be posted for consumers purchasing renewable fuels. 11 In 2022, the general assembly enacted 2022 Iowa Acts, chapter 12 1152, which reorganized Code chapter 214A. Subchapter I 13 regulates general matters such as standards and classifications 14 and subchapter II regulates the advertisement, sale, and use 15 of motor fuel. 16 WEIGHTS AND MEASURES —— PENALTY. A person who fails to allow 17 for an inspection of a motor fuel pump is guilty of a simple 18 misdemeanor. 19 WATER QUALITY. DALS regulates two water quality 20 initiatives, including water quality agriculture infrastructure 21 programs (amended Code section 466B.43) and the water quality 22 urban infrastructure program (amended Code section 466B.44). 23 The initiative is supported by the water quality initiative 24 fund (Code section 466B.45), the water quality infrastructure 25 fund (Code section 8.57B), and the water quality financial 26 assistance fund (Code section 16.134A). Moneys in the last 27 fund (15 percent) are appropriated to support the water quality 28 urban infrastructure program. The bill provides that DALS 29 may use moneys available to support the water quality urban 30 infrastructure program to instead support the water quality 31 agriculture infrastructure programs. The bill also eliminates 32 dates in several Code sections that are now extraneous. 33 APPLICABLE PENALTIES. A simple misdemeanor is punishable by 34 confinement for no more than 30 days and a fine of at least $105 35 -16- LSB 1218SV (2) 90 da/ns 16/ 17