House File 2340 - Introduced HOUSE FILE 2340 BY COMMITTEE ON AGRICULTURE (SUCCESSOR TO HSB 588) A BILL FOR An Act relating to agriculture, including by providing for 1 the powers and duties of the department of agriculture and 2 land stewardship, including the promotion and regulation 3 of commodities and products; the regulation of the 4 transportation of agricultural commodities; the use of 5 agricultural land; and taxation, including property taxes, 6 excise and sales taxes, and income taxes; making penalties 7 applicable; and including effective date and applicability 8 provisions. 9 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 10 TLSB 5552HV (5) 91 da/js

H.F. 2340 DIVISION I 1 DEPARTMENT OF AGRICULTURE AND LAND STEWARDSHIP —— PROMOTION —— 2 RENEWABLE FUEL INFRASTRUCTURE 3 Section 1. Section 159A.16, subsection 3, paragraphs a, b, 4 and c, Code 2026, are amended to read as follows: 5 a. For each fiscal year, not more than one million 6 seven hundred fifty thousand dollars shall be allocated to 7 support the renewable fuel infrastructure program for retail 8 motor fuel sites as provided in section 159A.14 to finance 9 the installation, replacement, or conversion of biodiesel 10 infrastructure as provided in that section. 11 b. a. For each fiscal year, not more than one hundred 12 fifty thousand dollars shall be allocated to the department to 13 support the administration of the programs. 14 c. b. For each fiscal year, the department may use up to 15 three-quarters of one percent of the program funds to market 16 the programs. Otherwise the moneys shall not be transferred, 17 used, obligated, appropriated, or otherwise encumbered except 18 to allocate as financial incentives under the programs. 19 DIVISION II 20 DEPARTMENT OF AGRICULTURE AND LAND STEWARDSHIP —— PROMOTION 21 PART A 22 GENERAL 23 Sec. 2. Section 23A.2, subsection 8, Code 2026, is amended 24 by adding the following new paragraph: 25 NEW PARAGRAPH . p. An activity carried out by the department 26 of agriculture and land stewardship to promote the marketing 27 of Iowa commodities and products, including as provided in 28 chapters 159 and 187. 29 Sec. 3. Section 187.201, subsection 3, Code 2026, is amended 30 to read as follows: 31 3. Moneys in the fund are appropriated to the department and 32 shall be used exclusively to administer the programs created 33 in this subchapter chapter as determined and directed by the 34 department, and shall not require further special authorization 35 -1- LSB 5552HV (5) 91 da/js 1/ 40

H.F. 2340 by the general assembly. 1 PART B 2 CHOOSE IOWA PROMOTION PROGRAMS 3 Sec. 4. Section 187.301, Code 2026, is amended by adding the 4 following new subsection: 5 NEW SUBSECTION . 1A. The department shall enroll a person as 6 a choose Iowa member who is any of the following: 7 a. Actively participating in the program by producing, 8 processing, or marketing Iowa agricultural products originating 9 as commodities produced on Iowa farms. 10 b. Otherwise supporting the program as required by the 11 department. 12 Sec. 5. Section 187.301, subsection 2, Code 2026, is amended 13 by adding the following new paragraph: 14 NEW PARAGRAPH . c. The department may adopt rules providing 15 for choose Iowa membership criteria. 16 Sec. 6. Section 187.303, subsections 1 and 2, Code 2026, are 17 amended to read as follows: 18 1. A person may apply to the department to participate 19 enroll as a member in the choose Iowa promotional program 20 according to procedures established by rules adopted by the 21 department. The department shall evaluate and approve or 22 disapprove applications an application based on criteria 23 established by rules adopted by the department. The department 24 may disapprove an application if the department determines the 25 applicant’s use of the choose Iowa logo would be associated 26 with the consumption of an adulterated or illegal food item. 27 2. The department may enter into a licensing agreement with 28 a person participating enrolled as a member in the program. 29 The participating person A member may use the choose Iowa logo 30 to advertise a food item product originating as an agricultural 31 commodity produced on an Iowa farm, subject to terms and 32 conditions required by rules adopted by the department. A 33 licensing agreement shall not be for more than one year. 34 Sec. 7. NEW SECTION . 187.307 Choose Iowa school purchasing 35 -2- LSB 5552HV (5) 91 da/js 2/ 40

H.F. 2340 program. 1 1. There is created within the department a choose Iowa 2 school purchasing program. 3 2. The department shall administer the program according to 4 all of the following: 5 a. A farm or business shall be eligible to participate in 6 the program if the farm or business is enrolled as a member of 7 the choose Iowa promotional program as provided in this part 1 8 of subchapter III. 9 b. A school or school district is eligible to participate in 10 the program, if recognized by the department. 11 c. A qualified food product is limited to meat and poultry, 12 dairy products other than milk, grains, flour, eggs, honey, and 13 produce. 14 3. a. An eligible school or school district purchasing 15 a qualified food product from an eligible farm or business 16 shall be reimbursed on a matching basis with the department 17 contributing one dollar for every one dollar expended by the 18 eligible school or school district. 19 b. The department may establish by rule the method and 20 limitations for determining the amount of funding available to 21 each school or school district under this section. 22 c. Notwithstanding paragraph “b ”, if the department 23 determines that there are not sufficient moneys to satisfy 24 all claims that may be submitted by schools and school 25 districts, the department shall provide for the distribution 26 of the available moneys in a manner determined equitable by 27 the department, which may include a prorated distribution to 28 participating schools and school districts. 29 4. The department may administer the program in cooperation 30 with the department of education and the participating school 31 or school district in which a participating school is located. 32 5. The department may use not more than five percent of the 33 moneys appropriated to support the program in a fiscal year to 34 pay for the costs of administering the program. 35 -3- LSB 5552HV (5) 91 da/js 3/ 40

H.F. 2340 6. The department shall prepare and submit a report 1 regarding its findings and recommendations to the governor and 2 general assembly not later than July 31 of each year. 3 Sec. 8. Section 187.331, Code 2026, is amended to read as 4 follows: 5 187.331 Choose Iowa food bank purchasing program. 6 1. There is created within the department a choose Iowa food 7 bank purchasing program. 8 2. The department shall administer the program according to 9 all of the following requirements : 10 a. A farm or business that owns or operates the farm source 11 shall be given a preference to participate in the program if 12 the farm or business is currently participating eligible to 13 participate in the program if the farm or business is enrolled 14 as a member in the choose Iowa promotional program as provided 15 in this part 1 of subchapter III. Otherwise, a farm or 16 business may participate in the program if the farm or business 17 has applied to participate in the choose Iowa promotional 18 program and the department determines that the application will 19 be approved. 20 b. An eligible participant is limited to any Iowa food bank 21 or an Iowa emergency feeding organization, recognized by the 22 department. 23 c. A qualified food product is limited to meat and poultry, 24 dairy products, grains, flour, eggs, honey, and produce. 25 3. a. Of the moneys appropriated to support the program in 26 a fiscal year, not more than two hundred thousand dollars shall 27 be used to reimburse Iowa food banks and Iowa emergency feeding 28 organizations. 29 b. 3. a. An eligible participant Iowa food bank or an 30 emergency feeding organization purchasing a qualified food 31 product from an eligible farm or business shall be reimbursed 32 on a matching basis with the department contributing one dollar 33 for every one dollar expended by the eligible participant Iowa 34 food bank or emergency feeding organization . 35 -4- LSB 5552HV (5) 91 da/js 4/ 40

H.F. 2340 c. b. An Iowa food bank or Iowa emergency feeding 1 organization shall not receive more than fifty thousand dollars 2 per fiscal year for participating in the program. 3 4. c. The department may use not more than five percent of 4 the moneys appropriated to support the program in a fiscal year 5 to pay for the costs of administering the program. 6 5. 4. The department shall prepare and submit a report 7 regarding its findings and recommendations to the governor and 8 general assembly not later than January 15 July 31 of each 9 year. 10 6. This section is repealed July 1, 2030. 11 Sec. 9. Section 190A.2, subsections 5 and 9, Code 2026, are 12 amended by striking the subsections. 13 Sec. 10. Section 190A.2, subsection 7, Code 2026, is amended 14 to read as follows: 15 7. “Program” means the farm-to-school program created in 16 section 190A.6 190A.3 . 17 Sec. 11. Section 190A.3, subsection 1, Code 2026, is amended 18 to read as follows: 19 1. The A farm-to-school program is created within the 20 department. The program shall seek to link elementary and 21 secondary public and nonpublic schools in this state with Iowa 22 farms to provide schools with fresh and minimally processed 23 food products for inclusion in school meals and snacks, 24 encourage children to develop healthy eating habits, and 25 provide Iowa farmers access to consumer markets. 26 Sec. 12. Section 190A.5, subsection 3, Code 2026, is amended 27 to read as follows: 28 3. Moneys in the fund are appropriated to support 29 the farm-to-school program in a manner determined by the 30 department, including for reasonable administrative costs 31 incurred by the department. However, the department shall 32 not expend more than four percent of moneys existing at any 33 one time in the fund during each fiscal year for purpose of 34 paying costs associated with the administration of the program 35 -5- LSB 5552HV (5) 91 da/js 5/ 40

H.F. 2340 and fund incurred by the department during that fiscal year. 1 Moneys expended from the fund shall not require further special 2 authorization by the general assembly. 3 Sec. 13. REPEAL. Section 190A.6, Code 2026, is repealed. 4 Sec. 14. CODE EDITOR DIRECTIVE. 5 1. The Code editor is directed to make the following 6 transfers: 7 a. Section 187.331 to section 187.308. 8 b. Section 159.25 to section 187.309. 9 2. The Code editor shall correct internal references in the 10 Code and in any enacted legislation as necessary due to the 11 enactment of this section. 12 PART C 13 INNOVATION AND REVITALIZATION PROGRAMS 14 Sec. 15. Section 187.311, Code 2026, is amended by adding 15 the following new subsection: 16 NEW SUBSECTION . 5A. The department may give priority to an 17 applicant who is a beginning farmer. 18 Sec. 16. NEW SECTION . 187.315 Butchery innovation and 19 revitalization program. 20 1. A butchery innovation and revitalization program is 21 created within the department. The purpose of the program is 22 to promote the development, modernization, and expansion of 23 this state’s butchery industry. 24 2. In administering the program, the department shall award 25 financial assistance to eligible businesses to support projects 26 that do one or more of the following: 27 a. To expand or refurbish an existing, or to establish a 28 new, state-inspected small-scale meat processing business. 29 b. To expand or refurbish an existing, or to establish a 30 new, federally inspected small-scale meat processing business. 31 c. To expand or refurbish an existing, or to establish a 32 new, licensed custom locker. 33 d. To expand or refurbish an existing, or to establish a 34 new, mobile slaughter unit that operates in compliance with 35 -6- LSB 5552HV (5) 91 da/js 6/ 40

H.F. 2340 the most current mobile slaughter unit compliance guide issued 1 by the United States department of agriculture food safety and 2 inspection service. 3 e. To rent buildings, refrigeration facilities, freezer 4 facilities, or equipment necessary to expand processing 5 capacity, including mobile slaughter or refrigeration units 6 used exclusively for meat or poultry processing. 7 3. The department shall establish eligibility criteria for 8 the program. The eligibility criteria must include all of the 9 following: 10 a. The business must be located in this state. 11 b. The business must not have been subject to any regulatory 12 enforcement action related to federal, state, or local 13 environmental, worker safety, food processing, or food safety 14 laws, rules, or regulations within the last five years. 15 c. The business must only employ individuals legally 16 authorized to work in this state. 17 d. The business must not currently be in bankruptcy. 18 e. The business must employ less than two hundred full-time 19 nonseasonal individuals. 20 4. An eligible business seeking financial assistance under 21 this section shall make application to the department in the 22 manner and on forms prescribed by the department. 23 5. Applications for financial assistance under this section 24 shall be accepted during one or more annual application periods 25 established by the department. Upon reviewing and scoring all 26 applications that are received during an application period, 27 and subject to the availability of moneys, the department may 28 award financial assistance to eligible businesses. A financial 29 assistance award shall not exceed the amount of eligible 30 project costs included in the eligible business’s application. 31 Priority shall be given to eligible businesses whose proposed 32 project or projects under subsection 2 are most likely to do 33 one or more of the following: 34 a. Create new jobs. 35 -7- LSB 5552HV (5) 91 da/js 7/ 40

H.F. 2340 b. Create or expand opportunities for local small-scale 1 farmers to market processed meat under private labels. 2 c. Provide greater flexibility or convenience for local 3 small-scale farmers to have animals processed. 4 6. An eligible business that is awarded financial 5 assistance under this section may apply for financial 6 assistance under other programs administered by the department. 7 Sec. 17. REPEAL. Section 15E.370, Code 2026, is repealed. 8 DIVISION III 9 DEPARTMENT OF AGRICULTURE AND LAND STEWARDSHIP REGULATION —— 10 ANIMAL HEALTH 11 Sec. 18. Section 163.1, Code 2026, is amended by adding the 12 following new subsection: 13 NEW SUBSECTION . 7A. Lease facilities in order to carry out 14 and administer the provisions of this chapter related to an 15 infectious or contagious disease or a foreign animal disease 16 preparedness and response effort. 17 Sec. 19. NEW SECTION . 163.2B Confidentiality. 18 1. Notwithstanding section 22.7, all information and 19 records relating to an infectious or contagious disease 20 received or collected by the department pursuant to this 21 chapter, including rules adopted under this chapter by the 22 department, is confidential to the extent it identifies any of 23 the following: 24 a. The name, address, and contact information of any person 25 owning or caring for an animal suspected of or being affected 26 with any infectious or contagious disease. 27 b. Any location where an animal suspected of or being 28 affected with any infectious or contagious disease has been 29 kept. 30 c. Information that when considered together leads to the 31 identity of a person described in paragraph “a” or a location or 32 premises described in paragraph “b” . 33 2. Notwithstanding subsection 1, the department, in 34 acting as the lawful custodian of the confidential record, may 35 -8- LSB 5552HV (5) 91 da/js 8/ 40

H.F. 2340 disclose the record or any part of the record if it is deemed 1 necessary by the state veterinarian to protect the public 2 health or the health or well-being of animals within the state. 3 DIVISION IV 4 DEPARTMENT OF AGRICULTURE AND LAND STEWARDSHIP —— REGULATION 5 —— WEIGHTS AND MEASURES 6 Sec. 20. Section 210.1, Code 2026, is amended to read as 7 follows: 8 210.1 Standard established Weights and measures standards —— 9 compliance with federal law . 10 The weights and measures which have been presented by the 11 department to the United States national institute of standards 12 and technology and approved, standardized, and certified by 13 the institute in accordance with the laws of the Congress of 14 the United States shall be the standard weights and measures 15 throughout the state regulated under this chapter shall conform 16 with Iowa’s state primary standard of weights and measures as 17 described in section 215.1B . 18 Sec. 21. Section 213.1, Code 2026, is amended to read as 19 follows: 20 213.1 State metrologist. 21 The department secretary of agriculture may designate 22 one of its assistants the bureau chief of the department’s 23 weights and measures bureau to act as state metrologist 24 of weights and measures. All weights and measures sealed 25 by the state metrologist shall be impressed with the word 26 “Iowa.” The bureau chief is the appropriate state official 27 responsible for cooperating with the national institute of 28 standards and technology as defined in section 215.1 and in the 29 administration of weights and measures as regulated in this 30 subtitle. 31 Sec. 22. Section 213.2, Code 2026, is amended to read as 32 follows: 33 213.2 Physical United States standards —— conformity . 34 Weights and measures , which conform to the standards of the 35 -9- LSB 5552HV (5) 91 da/js 9/ 40

H.F. 2340 United States national institute of standards and technology 1 existing as of January 1, 1979, that are metrologically 2 traceable to the United States standards supplied by the 3 federal government or approved as being in compliance with 4 its standards recognized by the national bureau institute of 5 standards and technology shall be the Iowa’s state primary 6 standard of weights and measures as verified by the department . 7 Such The traceable standards of weights and measures shall 8 be verified upon their initial receipt of same by the 9 department and as often as deemed necessary by the secretary 10 of agriculture department . The secretary department may 11 provide for the alteration in revise the state primary standard 12 of weights and measures in order to maintain metrological 13 traceability with the standard standards of the United States 14 national institute of standards and technology. All such 15 alterations The verification or revision shall be made pursuant 16 to rules promulgated adopted by the secretary department in 17 accordance with chapter 17A . 18 Sec. 23. Section 214.3, subsection 1, Code 2026, is amended 19 to read as follows: 20 1. A license fee is imposed on a person who uses or 21 displays for use a commercial weighing and measuring device. 22 The license fee is due the day the department issues the 23 license. The amount of the license fee shall be calculated in 24 accordance with the class or section for devices as established 25 by handbook 44 of the United States national institute of 26 standards and technology. 27 Sec. 24. Section 215.1, subsection 1, Code 2026, is amended 28 to read as follows: 29 1. a. “Commercial weighing and measuring device” or “device” 30 means a weight or measure or weighing or measuring device 31 used to establish size, quantity, area or other quantitative 32 measurement of a commodity sold by weight or measurement, or 33 where when the price to be paid for producing the commodity is 34 based upon the weight or measurement of the commodity. The 35 -10- LSB 5552HV (5) 91 da/js 10/ 40

H.F. 2340 term 1 b. “Commercial weighing and measuring device” includes an any 2 of the following: 3 (1) An accessory attached to or used in connection with 4 a commercial weighing or measuring device when the accessory 5 is so designed or installed that its operation may affect the 6 accuracy of the device. “Commercial weighing and measuring 7 device” includes a 8 (2) A public scale or a commercial scanner. 9 Sec. 25. Section 215.1, Code 2026, is amended by adding the 10 following new subsection: 11 NEW SUBSECTION . 3A. “National institute of standards and 12 technology” means the national institute of standards and 13 technology established within the United States department of 14 commerce pursuant to 15 U.S.C. §272. 15 Sec. 26. Section 215.1A, Code 2026, is amended to read as 16 follows: 17 215.1A Inspections. 18 1. The Except as otherwise expressly provided by statute, 19 the department shall regularly of agriculture and land 20 stewardship may inspect all any commercial weighing and 21 measuring devices, and when device. If the department 22 receives a complaint is made to the department that any false 23 or incorrect alleging weights or measures are being made 24 inaccurately recorded by a device , the department shall inspect 25 the commercial weighing and measuring devices which caused the 26 complaint device . 27 2. The department may inspect a prepackaged goods good to 28 determine the accuracy of their its recorded weights weight . 29 3. a. The department may order the owner of the device 30 or a service agency that installed, serviced, or repaired the 31 device, to deliver to the department one or more of the service 32 agency’s most recent test reports documenting the device’s 33 accuracy. 34 b. (1) Except as provided in subparagraph (2), the delivery 35 -11- LSB 5552HV (5) 91 da/js 11/ 40

H.F. 2340 of a report may be in lieu of an inspection. 1 (2) The department shall provide for an inspection of any 2 of the following: 3 (a) A motor fuel pump as required in section 214.11. 4 (b) A moisture-measuring device as required in section 5 215A.2. 6 (c) A charging station dispensing electric fuel as required 7 in section 452A.41. 8 Sec. 27. Section 215.14, subsection 3, Code 2026, is amended 9 to read as follows: 10 3. Before approval by the department, the specifications 11 for a commercial weighing and measuring device shall be 12 furnished to the purchaser of the device by the manufacturer. 13 The approval shall be based upon the recommendation of the 14 United States national institute of standards and technology. 15 Sec. 28. Section 215.19, Code 2026, is amended to read as 16 follows: 17 215.19 Automatic recorders on scales. 18 Except for scales a scale used by packers a packer 19 slaughtering fewer than one hundred twenty head of livestock 20 per day, all scales a scale with a capacity over five hundred 21 pounds, which are used for commercial purposes , in this 22 state, and installed after January 1, 1981, shall be equipped 23 with a type-registering weigh beam, a dial with a mechanical 24 ticket printer, an automatic weight recorder, or some similar 25 commercial weighing and measuring device , which shall be used 26 for printing or stamping the weight values on scale tickets. 27 A scale or similar device equipped with a malfunctioning 28 automatic weight recorder may shall not be used for not more 29 than seven days if the scale or similar device is unable to 30 print or stamp the ticket so long as and only if a repair to the 31 automatic recorder is immediately initiated and the user dates, 32 signs, and accurately handwrites the required information on 33 the ticket until the scale or similar device is operational. 34 Sec. 29. Section 215.23, subsection 2, Code 2026, is amended 35 -12- LSB 5552HV (5) 91 da/js 12/ 40

H.F. 2340 to read as follows: 1 2. In determining a servicer’s qualifications, the 2 department may consider the specifications of the United States 3 national institute of standards and technology, handbook 44, 4 “Specifications, Tolerances, and Technical Requirements for 5 Weighing and Measuring Devices”, or the current successor or 6 equivalent specifications adopted by the United States national 7 institute of standards and technology. 8 Sec. 30. Section 452A.40, Code 2026, is amended by adding 9 the following new subsection: 10 NEW SUBSECTION . 5A. “National institute of standards and 11 technology” means the same as defined in section 215.1. 12 Sec. 31. REPEAL. Sections 213.3 and 213.7, Code 2026, are 13 repealed. 14 Sec. 32. CODE EDITOR DIRECTIVE. 15 1. The Code editor is directed to make the following 16 transfers: 17 a. Section 213.1 to section 215.1B. 18 b. Section 213.2 to section 215.1C. 19 c. Section 215.18 to section 215.1D. 20 d. Section 215.1A to section 215.1E. 21 2. The Code editor shall correct internal references in the 22 Code and in any enacted legislation as necessary due to the 23 enactment of this section. 24 DIVISION V 25 DEPARTMENT OF AGRICULTURE AND LAND STEWARDSHIP REGULATION —— 26 GRAIN MARKETING 27 PART A 28 GRAIN DEALERS 29 Sec. 33. Section 203.3, subsection 4, paragraph b, Code 30 2026, is amended to read as follows: 31 b. (1) The grain dealer shall submit to the department , 32 as required by the department, a financial statement that is 33 accompanied by an unqualified opinion based upon an audit 34 performed by a certified public accountant licensed in this 35 -13- LSB 5552HV (5) 91 da/js 13/ 40

H.F. 2340 state. 1 (2) Notwithstanding subparagraph (1), if a grain dealer 2 does not purchase grain by credit-sale contract, the department 3 may accept any of the following: 4 (a) A qualification in an opinion based on an audit that 5 is unavoidable by any audit procedure that is permitted under 6 generally accepted accounting principles. An opinion that 7 is qualified because of a limited audit procedure or because 8 the scope of an audit is limited shall not be accepted by the 9 department. 10 (b) A financial statement that is accompanied by the 11 report of a certified public accountant licensed in this 12 state. The report must be based upon a review performed by the 13 certified public accountant. The report shall be in lieu of an 14 unqualified opinion based on an audit. However, at any time, 15 upon good cause, the department may require the grain dealer to 16 submit to the department a subsequent financial statement that 17 is accompanied by the report. 18 (3) The department shall not require that a grain dealer to 19 submit to the department more than one such unqualified opinion 20 based on an audit per year. 21 (4) A grain dealer shall submit one or more financial 22 statements to the department in addition to the financial 23 statement accompanied by an unqualified opinion based on 24 an audit as required in this paragraph if the department 25 determines that it is necessary to verify the grain dealer’s 26 financial status or compliance with this section . 27 Sec. 34. Section 203.3, subsection 5, paragraph b, Code 28 2026, is amended to read as follows: 29 b. (1) The grain dealer shall submit to the department , 30 as required by the department, a financial statement that is 31 accompanied by an unqualified opinion based upon an audit 32 performed by a certified public accountant licensed in this 33 state. 34 (2) Notwithstanding subparagraph (1), the department may 35 -14- LSB 5552HV (5) 91 da/js 14/ 40

H.F. 2340 accept any of the following: 1 (a) A qualification in an opinion based on an audit that 2 is unavoidable by any audit procedure that is permitted under 3 generally accepted accounting principles. An opinion that 4 is qualified because of a limited audit procedure or because 5 the scope of an audit is limited shall not be accepted by the 6 department. 7 (b) A financial statement that is accompanied by the 8 report of a certified public accountant licensed in this 9 state. The report must be based upon a review performed by the 10 certified public accountant. The report shall be in lieu of an 11 unqualified opinion based on an audit. However, at any time, 12 upon good cause, the department may require the grain dealer to 13 submit to the department a subsequent financial statement that 14 is accompanied by the report. 15 (3) The department shall not require that a grain dealer to 16 submit to the department more than one such unqualified opinion 17 based on an audit per year. 18 (4) A grain dealer shall submit one or more financial 19 statements to the department in addition to the financial 20 statement accompanied by an unqualified opinion based on an 21 audit required in this paragraph if the department determines 22 that it is necessary to verify the grain dealer’s financial 23 status or compliance with this section . 24 Sec. 35. Section 203.8, subsection 2, paragraph a, Code 25 2026, is amended to read as follows: 26 a. (1) “Delivery” Subject to subparagraph (2), “delivery” 27 means the transfer of title to and possession of grain by a 28 seller to a grain dealer or to another person in accordance 29 with the terms of an agreement of by the seller and the grain 30 dealer. 31 (2) Unless title to grain was previously transferred 32 pursuant to an ordinary cash-sale contract, title to grain sold 33 by credit-sale contract is deemed to have transferred to the 34 grain dealer when all of the following occurs: 35 -15- LSB 5552HV (5) 91 da/js 15/ 40

H.F. 2340 (a) The credit-sale contract is signed by both the grain 1 dealer and the seller. 2 (b) The grain dealer has possession of the grain or another 3 person has possession of the grain in accordance with the terms 4 of the credit-sale contract. 5 Sec. 36. Section 203.12, subsection 1, Code 2026, is amended 6 to read as follows: 7 1. Upon the cessation of a grain dealer license by 8 revocation, cancellation, or expiration pursuant to section 9 203.10 or upon the filing of a petition in bankruptcy by a 10 grain dealer , any claim for the purchase price of grain against 11 the grain dealer shall be made in writing and filed with the 12 grain dealer and with the issuer of a deficiency bond or of an 13 irrevocable letter of credit and with the department within 14 one hundred twenty days after the date of the cessation or the 15 filing of a petition in bankruptcy, whichever occurs earlier . 16 A failure to make this timely claim relieves the issuer and the 17 grain depositors and sellers indemnity fund provided in chapter 18 203D of all obligations to the claimant. 19 Sec. 37. Section 203.12A, subsection 5, Code 2026, is 20 amended to read as follows: 21 5. The Iowa grain indemnity fund board, upon written demand 22 of the grain dealer, shall file a termination statement with 23 the secretary of state, if after one hundred eighty days from 24 the date that the lien is perfected the grain dealer’s license 25 has not ceased by revocation, cancellation, or expiration 26 pursuant to section 203C.10 . Upon filing the termination 27 statement, the lien becomes unperfected. The board shall 28 also deliver a copy of the termination statement to the grain 29 dealer. 30 PART B 31 GRAIN OPERATORS 32 Sec. 38. Section 203C.6, subsection 4, paragraph b, Code 33 2026, is amended to read as follows: 34 b. (1) The warehouse operator shall submit to the 35 -16- LSB 5552HV (5) 91 da/js 16/ 40

H.F. 2340 department , as required by the department, a financial 1 statement that is accompanied by an unqualified opinion based 2 upon an audit performed by a certified public accountant 3 licensed in this state. 4 (2) Notwithstanding subparagraph (1), the department may 5 accept any of the following: 6 (a) A qualification in an opinion based on an audit that 7 is unavoidable by any audit procedure that is permitted under 8 generally accepted accounting principles. An opinion that 9 is qualified because of a limited audit procedure or because 10 the scope of an audit is limited shall not be accepted by the 11 department. 12 (b) A financial statement that is accompanied by the 13 report of a certified public accountant licensed in this 14 state. The report must be based upon a review performed by 15 the certified public accountant. The report shall be in lieu 16 of an unqualified opinion based on an audit. However, at any 17 time, upon good cause, the department may require the warehouse 18 operator to submit to the department a subsequent financial 19 statement that is accompanied by the report. 20 (3) The department shall not require that a warehouse 21 operator to submit to the department more than one such 22 unqualified opinion based on an audit per year. 23 (4) A warehouse operator shall submit one or more financial 24 statements to the department in addition to the financial 25 statement accompanied by an unqualified opinion based on 26 an audit as required in this paragraph if the department 27 determines that it is necessary to verify the warehouse 28 operator’s financial status or compliance with this section . 29 Sec. 39. Section 203C.6, subsection 5, paragraph b, Code 30 2026, is amended to read as follows: 31 b. (1) The warehouse operator shall submit to the 32 department , as required by the department, a financial 33 statement that is accompanied by an unqualified opinion based 34 upon an audit performed by a certified public accountant 35 -17- LSB 5552HV (5) 91 da/js 17/ 40

H.F. 2340 licensed in this state. 1 (2) Notwithstanding subparagraph (1), the department may 2 accept any of the following: 3 (a) A qualification in an opinion based on an audit that 4 is unavoidable by any audit procedure that is permitted under 5 generally accepted accounting principles. An opinion that 6 is qualified because of a limited audit procedure or because 7 the scope of an audit is limited shall not be accepted by the 8 department. 9 (b) A financial statement that is accompanied by the 10 report of a certified public accountant licensed in this 11 state. The report must be based upon a review performed by 12 the certified public accountant. The report shall be in lieu 13 of an unqualified opinion based on an audit. However, at any 14 time, upon good cause, the department may require the warehouse 15 operator to submit to the department a subsequent financial 16 statement that is accompanied by the report. 17 (3) The department shall not require that a warehouse 18 operator to submit more than one such unqualified opinion based 19 on an audit per year. 20 (4) A warehouse operator shall submit one or more financial 21 statements to the department in addition to the financial 22 statement accompanied by an unqualified opinion based on 23 an audit as required in this paragraph if the department 24 determines that it is necessary to verify the warehouse 25 operator’s financial status or compliance with this section . 26 Sec. 40. Section 203C.12A, subsection 5, Code 2026, is 27 amended to read as follows: 28 5. The Iowa grain indemnity fund board shall upon written 29 demand of the warehouse operator file a termination statement 30 with the secretary of state, if after one hundred eighty 31 days from the date that the lien is perfected the warehouse 32 operator’s license has not ceased by revocation, cancellation, 33 or expiration pursuant to section 203C.10 . Upon filing the 34 termination statement, the lien becomes unperfected. The board 35 -18- LSB 5552HV (5) 91 da/js 18/ 40