House File 2727 - Introduced HOUSE FILE 2727 BY TUREK A BILL FOR An Act providing for the reporting of certain information 1 relating to the sale of fertilizers, providing penalties, 2 making penalties applicable, and including effective date 3 provisions. 4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 5 TLSB 6587YH (3) 91 da/js

H.F. 2727 Section 1. NEW SECTION . 200.5A Report —— pricing 1 information. 2 1. If a manufacturer is required to be licensed under 3 section 200.4 and sells a brand of fertilizer required to be 4 registered pursuant section 200.5 on a wholesale or retail 5 basis to a customer in this state, the manufacturer shall 6 report to the department each month pricing information, as 7 required by the department. The pricing information must at 8 least include all of the following: 9 a. (1) The current price per ton paid by the manufacturer 10 for each active ingredient used to manufacture each named 11 registered brand of fertilizer sold in this state. 12 (2) For purposes of subparagraph (1), an active ingredient 13 includes the minimum percentage of plant nutrients as stated on 14 the brand’s label in the form of a guaranteed analysis. 15 b. The total quantity of each named registered brand of 16 fertilizer sold by the manufacturer to all customers in this 17 state and the total quantity of all named registered brands 18 of fertilizers sold by the licensee to all customers in this 19 state. 20 c. The lowest and highest price for each named registered 21 brand sold by the manufacturer to customers in this state. 22 d. The terms of any agreement entered into by the licensee 23 and a customer for the discounted sale price of each named 24 registered brand of fertilizer sold in this state. 25 2. a. A manufacturer who violates subsection 1 is subject 26 to a civil penalty that may be administratively imposed, 27 assessed, and collected by the department acting in cooperation 28 with the attorney general. 29 b. The department shall establish by rule a schedule 30 of civil penalties to be imposed upon a manufacturer that 31 is determined to have violated subsection 1. The schedule 32 shall provide procedures and criteria for the administrative 33 assessment of penalties. In adopting the schedule, the 34 department shall consider among other factors determined 35 -1- LSB 6587YH (3) 91 da/js 1/ 3

H.F. 2727 relevant by the department all of the following: 1 (1) The total volume of registered brands of fertilizers 2 that the manufacturer sells in this state. 3 (2) The costs saved or likely to be saved by the 4 manufacturer in not complying with subsection 1. 5 (3) The gravity of the manufacturer’s violation of 6 subsection 1. 7 (4) The degree of the manufacturer’s willfulness in 8 violating subsection 1. 9 c. The department shall impose a civil penalty under this 10 subsection of not more than fifty thousand dollars for each 11 violation of subsection 1. Each day that a violation continues 12 shall be considered a separate offense. 13 Sec. 2. ADMINISTRATIVE RULES. The department may adopt 14 emergency rules under section 17A.4, subsection 3, and section 15 17A.5, subsection 2, paragraph “b”, to administer this Act and 16 the rules shall be effective immediately upon filing unless 17 a later date is specified in the rules. Any rules adopted 18 in accordance with this section shall also be published as a 19 notice of intended action as provided in section 17A.4. 20 Sec. 3. EFFECTIVE DATE. This Act, being deemed of immediate 21 importance, takes effect upon enactment. 22 EXPLANATION 23 The inclusion of this explanation does not constitute agreement with 24 the explanation’s substance by the members of the general assembly. 25 BACKGROUND —— GENERAL. The department of agriculture and 26 land stewardship (DALS) regulates the composition of soil 27 inputs, including nutrients such as fertilizers that are 28 manufactured to achieve optimum plant growth, under the Iowa 29 fertilizer law (Code section 200.1). DALS issues licenses to 30 persons who manufacture, offer for sale, sell, or distribute 31 a fertilizer (Code section 200.4). Each brand of commercial 32 fertilizer must be registered with DALS (Code section 200.5). 33 A fertilizer is subject to label requirements (Code section 34 200.6), which include a guaranteed analysis, which is the 35 -2- LSB 6587YH (3) 91 da/js 2/ 3

H.F. 2727 minimum percentage of plant nutrients. DALS is authorized to 1 adopt rules under the Iowa administrative procedure Act (IAPA) 2 in order to administer Code chapter 200. 3 BACKGROUND —— APPLICABLE PENALTIES. DALS is authorized 4 to take administrative action against a licensee acting in 5 violation of the law, including by canceling the license (Code 6 section 200.15), issuing a stop order (Code section 200.16), 7 or seizing a fertilizer (Code section 200.17). A person that 8 violates Code chapter 200 or rules adopted by DALS pursuant to 9 that Code chapter is guilty of a simple misdemeanor. A simple 10 misdemeanor is punishable by confinement for no more than 30 11 days and a fine of at least $105 but not more than $855. 12 BILL’S PROVISIONS —— GENERAL. This bill provides that a 13 fertilizer manufacturer that sells a registered brand to a 14 customer in this state must submit a monthly report to DALS 15 stating pricing information regarding the active ingredients 16 used to manufacture each brand, the total quantity of each 17 brand and the total quantity of all brands, the lowest 18 and highest price for each brand, and the terms of any 19 agreement entered into by the licensee and a customer for the 20 discounted sale of a brand. A manufacturer that violates 21 the bill’s provisions is subject to a civil penalty that may 22 be administratively imposed, assessed, and collected by DALS 23 acting in cooperation with the attorney general. DALS is 24 required to establish by rule a schedule of civil penalties 25 to be imposed upon a manufacturer that is determined to have 26 violated the provisions of the bill. A manufacturer is subject 27 to a civil penalty of not more than $50,000 for each day that 28 a violation continues. 29 BILL’S PROVISIONS —— ADMINISTRATIVE RULES AND EFFECTIVE 30 DATE. The bill authorizes DALS to adopt rules under the IAPA 31 under its emergency (double-barreled) rulemaking provisions to 32 administer the bill. The bill’s provisions take effect upon 33 enactment. 34 -3- LSB 6587YH (3) 91 da/js 3/ 3