HF 2727 (LSB 6587YH (3) 91)

HOUSE FILE 2727

BY  TUREK

A BILL FOR

An Act providing for the reporting of certain information relating to the sale of fertilizers, providing penalties, making penalties applicable, and including effective date provisions.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  NEW SECTION.  200.5A  Report —— pricing information.
   1.  If a manufacturer is required to be licensed under section 200.4 and sells a brand of fertilizer required to be registered pursuant section 200.5 on a wholesale or retail basis to a customer in this state, the manufacturer shall report to the department each month pricing information, as required by the department. The pricing information must at least include all of the following:
   a.  (1)  The current price per ton paid by the manufacturer for each active ingredient used to manufacture each named registered brand of fertilizer sold in this state.
   (2)  For purposes of subparagraph (1), an active ingredient includes the minimum percentage of plant nutrients as stated on the brand’s label in the form of a guaranteed analysis.
   b.  The total quantity of each named registered brand of fertilizer sold by the manufacturer to all customers in this state and the total quantity of all named registered brands of fertilizers sold by the licensee to all customers in this state.
   c.  The lowest and highest price for each named registered brand sold by the manufacturer to customers in this state.
   d.  The terms of any agreement entered into by the licensee and a customer for the discounted sale price of each named registered brand of fertilizer sold in this state.
   2.  a.  A manufacturer who violates subsection 1 is subject to a civil penalty that may be administratively imposed, assessed, and collected by the department acting in cooperation with the attorney general.
   b.  The department shall establish by rule a schedule of civil penalties to be imposed upon a manufacturer that is determined to have violated subsection 1. The schedule shall provide procedures and criteria for the administrative assessment of penalties. In adopting the schedule, the department shall consider among other factors determined relevant by the department all of the following:
   (1)  The total volume of registered brands of fertilizers that the manufacturer sells in this state.
   (2)  The costs saved or likely to be saved by the manufacturer in not complying with subsection 1.
   (3)  The gravity of the manufacturer’s violation of subsection 1.
   (4)  The degree of the manufacturer’s willfulness in violating subsection 1.
   c.  The department shall impose a civil penalty under this subsection of not more than fifty thousand dollars for each violation of subsection 1. Each day that a violation continues shall be considered a separate offense.
    Sec. 2.  ADMINISTRATIVE RULES.  The department may adopt emergency rules under section 17A.4, subsection 3, and section 17A.5, subsection 2, paragraph “b”, to administer this Act and the rules shall be effective immediately upon filing unless a later date is specified in the rules. Any rules adopted in accordance with this section shall also be published as a notice of intended action as provided in section 17A.4.
    Sec. 3.  EFFECTIVE DATE.  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.
   BACKGROUND —— GENERAL. The department of agriculture and land stewardship (DALS) regulates the composition of soil inputs, including nutrients such as fertilizers that are manufactured to achieve optimum plant growth, under the Iowa fertilizer law (Code section 200.1). DALS issues licenses to persons who manufacture, offer for sale, sell, or distribute a fertilizer (Code section 200.4). Each brand of commercial fertilizer must be registered with DALS (Code section 200.5). A fertilizer is subject to label requirements (Code section 200.6), which include a guaranteed analysis, which is the minimum percentage of plant nutrients. DALS is authorized to adopt rules under the Iowa administrative procedure Act (IAPA) in order to administer Code chapter 200.
   BACKGROUND —— APPLICABLE PENALTIES. DALS is authorized to take administrative action against a licensee acting in violation of the law, including by canceling the license (Code section 200.15), issuing a stop order (Code section 200.16), or seizing a fertilizer (Code section 200.17). A person that violates Code chapter 200 or rules adopted by DALS pursuant to that Code chapter is guilty of a simple misdemeanor. A simple misdemeanor is punishable by confinement for no more than 30 days and a fine of at least $105 but not more than $855.
   BILL’S PROVISIONS —— GENERAL. This bill provides that a fertilizer manufacturer that sells a registered brand to a customer in this state must submit a monthly report to DALS stating pricing information regarding the active ingredients used to manufacture each brand, the total quantity of each brand and the total quantity of all brands, the lowest and highest price for each brand, and the terms of any agreement entered into by the licensee and a customer for the discounted sale of a brand. A manufacturer that violates the bill’s provisions is subject to a civil penalty that may be administratively imposed, assessed, and collected by DALS acting in cooperation with the attorney general. DALS is required to establish by rule a schedule of civil penalties to be imposed upon a manufacturer that is determined to have violated the provisions of the bill. A manufacturer is subject to a civil penalty of not more than $50,000 for each day that a violation continues.
   BILL’S PROVISIONS —— ADMINISTRATIVE RULES AND EFFECTIVE DATE. The bill authorizes DALS to adopt rules under the IAPA under its emergency (double-barreled) rulemaking provisions to administer the bill. The bill’s provisions take effect upon enactment.