House Study Bill 588 - Introduced SENATE/HOUSE FILE _____ BY (PROPOSED DEPARTMENT OF AGRICULTURE AND LAND STEWARDSHIP BILL) 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 5552XD (7) 91 da/js

S.F. _____ H.F. _____ 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 5552XD (7) 91 da/js 1/ 36

S.F. _____ H.F. _____ 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 5552XD (7) 91 da/js 2/ 36

S.F. _____ H.F. _____ 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 5552XD (7) 91 da/js 3/ 36

S.F. _____ H.F. _____ 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 5552XD (7) 91 da/js 4/ 36

S.F. _____ H.F. _____ 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, subsection 7, Code 2026, is amended 12 by striking the subsection. 13 Sec. 10. Section 190A.5, subsection 3, Code 2026, is amended 14 to read as follows: 15 3. Moneys in the fund are appropriated to support 16 the farm-to-school program in a manner determined by the 17 department, including for reasonable administrative costs 18 incurred by the department. However, the department shall 19 not expend more than four percent of moneys existing at any 20 one time in the fund during each fiscal year for purpose of 21 paying costs associated with the administration of the program 22 and fund incurred by the department during that fiscal year. 23 Moneys expended from the fund shall not require further special 24 authorization by the general assembly. 25 Sec. 11. REPEAL. Section 190A.6, Code 2026, is repealed. 26 Sec. 12. CODE EDITOR DIRECTIVE. 27 1. The Code editor is directed to make the following 28 transfers: 29 a. Section 187.331 to section 187.308. 30 b. Section 159.25 to section 187.309. 31 2. The Code editor shall correct internal references in the 32 Code and in any enacted legislation as necessary due to the 33 enactment of this section. 34 PART C 35 -5- LSB 5552XD (7) 91 da/js 5/ 36

S.F. _____ H.F. _____ INNOVATION AND REVITALIZATION PROGRAMS 1 Sec. 13. Section 187.311, Code 2026, is amended by adding 2 the following new subsection: 3 NEW SUBSECTION . 5A. The department may give priority to an 4 applicant who is a beginning farmer. 5 Sec. 14. NEW SECTION . 187.315 Butchery innovation and 6 revitalization program. 7 1. A butchery innovation and revitalization program is 8 created within the department. The purpose of the program is 9 to promote the development, modernization, and expansion of 10 this state’s butchery industry. 11 2. In administering the program, the department shall award 12 financial assistance to eligible businesses to support projects 13 that do one or more of the following: 14 a. To expand or refurbish an existing, or to establish a 15 new, state-inspected small-scale meat processing business. 16 b. To expand or refurbish an existing, or to establish a 17 new, federally inspected small-scale meat processing business. 18 c. To expand or refurbish an existing, or to establish a 19 new, licensed custom locker. 20 d. To expand or refurbish an existing, or to establish a 21 new, mobile slaughter unit that operates in compliance with 22 the most current mobile slaughter unit compliance guide issued 23 by the United States department of agriculture food safety and 24 inspection service. 25 e. To rent buildings, refrigeration facilities, freezer 26 facilities, or equipment necessary to expand processing 27 capacity, including mobile slaughter or refrigeration units 28 used exclusively for meat or poultry processing. 29 3. The department shall establish eligibility criteria for 30 the program. The eligibility criteria must include all of the 31 following: 32 a. The business must be located in this state. 33 b. The business must not have been subject to any regulatory 34 enforcement action related to federal, state, or local 35 -6- LSB 5552XD (7) 91 da/js 6/ 36

S.F. _____ H.F. _____ environmental, worker safety, food processing, or food safety 1 laws, rules, or regulations within the last five years. 2 c. The business must only employ individuals legally 3 authorized to work in this state. 4 d. The business must not currently be in bankruptcy. 5 e. The business must employ less than two hundred full-time 6 nonseasonal individuals. 7 4. An eligible business seeking financial assistance under 8 this section shall make application to the department in the 9 manner and on forms prescribed by the department. 10 5. Applications for financial assistance under this section 11 shall be accepted during one or more annual application periods 12 established by the department. Upon reviewing and scoring all 13 applications that are received during an application period, 14 and subject to the availability of moneys, the department may 15 award financial assistance to eligible businesses. A financial 16 assistance award shall not exceed the amount of eligible 17 project costs included in the eligible business’s application. 18 Priority shall be given to eligible businesses whose proposed 19 project or projects under subsection 2 are most likely to do 20 one or more of the following: 21 a. Create new jobs. 22 b. Create or expand opportunities for local small-scale 23 farmers to market processed meat under private labels. 24 c. Provide greater flexibility or convenience for local 25 small-scale farmers to have animals processed. 26 6. An eligible business that is awarded financial 27 assistance under this section may apply for financial 28 assistance under other programs administered by the department. 29 Sec. 15. REPEAL. Section 15E.370, Code 2026, is repealed. 30 DIVISION III 31 DEPARTMENT OF AGRICULTURE AND LAND STEWARDSHIP REGULATION —— 32 ANIMAL HEALTH 33 Sec. 16. Section 163.1, Code 2026, is amended by adding the 34 following new subsection: 35 -7- LSB 5552XD (7) 91 da/js 7/ 36

S.F. _____ H.F. _____ NEW SUBSECTION . 7A. Lease facilities in order to carry out 1 and administer the provisions of this chapter related to an 2 infectious or contagious disease or a foreign animal disease 3 preparedness and response effort. 4 Sec. 17. NEW SECTION . 163.2B Confidentiality. 5 1. Notwithstanding section 22.7, all information and 6 records relating to an infectious or contagious disease 7 received or collected by the department pursuant to this 8 chapter, including rules adopted under this chapter by the 9 department, is confidential to the extent it identifies any of 10 the following: 11 a. The name, address, and contact information of any person 12 owning or caring for an animal suspected of or being affected 13 with any infectious or contagious disease. 14 b. Any location where an animal suspected of or being 15 affected with any infectious or contagious disease has been 16 kept. 17 c. Information that when considered together leads to the 18 identity of a person described in paragraph “a” or a location or 19 premises described in paragraph “b” . 20 2. Notwithstanding subsection 1, the department, in 21 acting as the lawful custodian of the confidential record, may 22 disclose the record or any part of the record if it is deemed 23 necessary by the state veterinarian to protect the public 24 health or the health or well-being of animals within the state. 25 DIVISION IV 26 DEPARTMENT OF AGRICULTURE AND LAND STEWARDSHIP —— REGULATION 27 —— WEIGHTS AND MEASURES 28 Sec. 18. Section 210.1, Code 2026, is amended to read as 29 follows: 30 210.1 Standard established Weights and measures standards —— 31 compliance with federal law . 32 The weights and measures which have been presented by the 33 department to the United States national institute of standards 34 and technology and approved, standardized, and certified by 35 -8- LSB 5552XD (7) 91 da/js 8/ 36

S.F. _____ H.F. _____ the institute in accordance with the laws of the Congress of 1 the United States shall be the standard weights and measures 2 throughout the state regulated under this chapter shall conform 3 with Iowa’s state primary standard of weights and measures as 4 described in section 215.1B . 5 Sec. 19. Section 213.1, Code 2026, is amended to read as 6 follows: 7 213.1 State metrologist. 8 The department secretary of agriculture may designate 9 one of its assistants the bureau chief of the department’s 10 weights and measures bureau to act as state metrologist 11 of weights and measures. All weights and measures sealed 12 by the state metrologist shall be impressed with the word 13 “Iowa.” The bureau chief is the appropriate state official 14 responsible for cooperating with the national institute of 15 standards and technology as defined in section 215.1 and in the 16 administration of weights and measures as regulated in this 17 subtitle. 18 Sec. 20. Section 213.2, Code 2026, is amended to read as 19 follows: 20 213.2 Physical United States standards —— conformity . 21 Weights and measures , which conform to the standards of the 22 United States national institute of standards and technology 23 existing as of January 1, 1979, that are metrologically 24 traceable to the United States standards supplied by the 25 federal government or approved as being in compliance with 26 its standards recognized by the national bureau institute of 27 standards and technology shall be the Iowa’s state primary 28 standard of weights and measures as verified by the department . 29 Such The traceable standards of weights and measures shall 30 be verified upon their initial receipt of same by the 31 department and as often as deemed necessary by the secretary 32 of agriculture department . The secretary department may 33 provide for the alteration in revise the state primary standard 34 of weights and measures in order to maintain metrological 35 -9- LSB 5552XD (7) 91 da/js 9/ 36

S.F. _____ H.F. _____ traceability with the standard standards of the United States 1 national institute of standards and technology. All such 2 alterations The verification or revision shall be made pursuant 3 to rules promulgated adopted by the secretary department in 4 accordance with chapter 17A . 5 Sec. 21. Section 214.3, subsection 1, Code 2026, is amended 6 to read as follows: 7 1. A license fee is imposed on a person who uses or 8 displays for use a commercial weighing and measuring device. 9 The license fee is due the day the department issues the 10 license. The amount of the license fee shall be calculated in 11 accordance with the class or section for devices as established 12 by handbook 44 of the United States national institute of 13 standards and technology. 14 Sec. 22. Section 215.1, subsection 1, Code 2026, is amended 15 to read as follows: 16 1. a. “Commercial weighing and measuring device” or “device” 17 means a weight or measure or weighing or measuring device 18 used to establish size, quantity, area or other quantitative 19 measurement of a commodity sold by weight or measurement, or 20 where when the price to be paid for producing the commodity is 21 based upon the weight or measurement of the commodity. The 22 term 23 b. “Commercial weighing and measuring device” includes an any 24 of the following: 25 (1) An accessory attached to or used in connection with 26 a commercial weighing or measuring device when the accessory 27 is so designed or installed that its operation may affect the 28 accuracy of the device. “Commercial weighing and measuring 29 device” includes a 30 (2) A public scale or a commercial scanner. 31 Sec. 23. Section 215.1, Code 2026, is amended by adding the 32 following new subsection: 33 NEW SUBSECTION . 3A. “National institute of standards and 34 technology” means the national institute of standards and 35 -10- LSB 5552XD (7) 91 da/js 10/ 36

S.F. _____ H.F. _____ technology established within the United States department of 1 commerce pursuant to 15 U.S.C. §272. 2 Sec. 24. Section 215.1A, Code 2026, is amended to read as 3 follows: 4 215.1A Inspections. 5 1. The Except as otherwise expressly provided by statute, 6 the department shall regularly of agriculture and land 7 stewardship may inspect all any commercial weighing and 8 measuring devices, and when device. If the department 9 receives a complaint is made to the department that any false 10 or incorrect alleging weights or measures are being made 11 inaccurately recorded by a device , the department shall inspect 12 the commercial weighing and measuring devices which caused the 13 complaint device . 14 2. The department may inspect a prepackaged goods good to 15 determine the accuracy of their its recorded weights weight . 16 3. a. The department may order the owner of the device 17 or a service agency that installed, serviced, or repaired the 18 device, to deliver to the department one or more of the service 19 agency’s most recent test reports documenting the device’s 20 accuracy. 21 b. (1) Except as provided in subparagraph (2), the delivery 22 of a report may be in lieu of an inspection. 23 (2) The department shall provide for an inspection of any 24 of the following: 25 (a) A motor fuel pump as required in section 214.11. 26 (b) A moisture-measuring device as required in section 27 215A.2. 28 (c) A charging station dispensing electric fuel as required 29 in section 452A.41. 30 Sec. 25. Section 215.14, subsection 3, Code 2026, is amended 31 to read as follows: 32 3. Before approval by the department, the specifications 33 for a commercial weighing and measuring device shall be 34 furnished to the purchaser of the device by the manufacturer. 35 -11- LSB 5552XD (7) 91 da/js 11/ 36

S.F. _____ H.F. _____ The approval shall be based upon the recommendation of the 1 United States national institute of standards and technology. 2 Sec. 26. Section 215.19, Code 2026, is amended to read as 3 follows: 4 215.19 Automatic recorders on scales. 5 Except for scales a scale used by packers a packer 6 slaughtering fewer than one hundred twenty head of livestock 7 per day, all scales a scale with a capacity over five hundred 8 pounds, which are used for commercial purposes , in this 9 state, and installed after January 1, 1981, shall be equipped 10 with a type-registering weigh beam, a dial with a mechanical 11 ticket printer, an automatic weight recorder, or some similar 12 commercial weighing and measuring device , which shall be used 13 for printing or stamping the weight values on scale tickets. 14 A scale or similar device equipped with a malfunctioning 15 automatic weight recorder may shall not be used for not more 16 than seven days if the scale or similar device is unable to 17 print or stamp the ticket so long as and only if a repair to the 18 automatic recorder is immediately initiated and the user dates, 19 signs, and accurately handwrites the required information on 20 the ticket until the scale or similar device is operational. 21 Sec. 27. Section 215.23, subsection 2, Code 2026, is amended 22 to read as follows: 23 2. In determining a servicer’s qualifications, the 24 department may consider the specifications of the United States 25 national institute of standards and technology, handbook 44, 26 “Specifications, Tolerances, and Technical Requirements for 27 Weighing and Measuring Devices”, or the current successor or 28 equivalent specifications adopted by the United States national 29 institute of standards and technology. 30 Sec. 28. Section 452A.40, Code 2026, is amended by adding 31 the following new subsection: 32 NEW SUBSECTION . 5A. “National institute of standards and 33 technology” means the same as defined in section 215.1. 34 Sec. 29. REPEAL. Sections 213.3 and 213.7, Code 2026, are 35 -12- LSB 5552XD (7) 91 da/js 12/ 36

S.F. _____ H.F. _____ repealed. 1 Sec. 30. CODE EDITOR DIRECTIVE. 2 1. The Code editor is directed to make the following 3 transfers: 4 a. Section 213.1 to section 215.1B. 5 b. Section 213.2 to section 215.1C. 6 c. Section 215.18 to section 215.1D. 7 d. Section 215.1A to section 215.1E. 8 2. The Code editor shall correct internal references in the 9 Code and in any enacted legislation as necessary due to the 10 enactment of this section. 11 DIVISION V 12 DEPARTMENT OF AGRICULTURE AND LAND STEWARDSHIP REGULATION —— 13 GRAIN MARKETING 14 PART A 15 GRAIN DEALERS 16 Sec. 31. Section 203.3, subsection 4, paragraph b, Code 17 2026, is amended to read as follows: 18 b. (1) The grain dealer shall submit to the department , 19 as required by the department, a financial statement that is 20 accompanied by an unqualified opinion based upon an audit 21 performed by a certified public accountant licensed in this 22 state. 23 (2) Notwithstanding subparagraph (1), if a grain dealer 24 does not purchase grain by credit-sale contract, the department 25 may accept any of the following: 26 (a) A qualification in an opinion based on an audit that 27 is unavoidable by any audit procedure that is permitted under 28 generally accepted accounting principles. An opinion that 29 is qualified because of a limited audit procedure or because 30 the scope of an audit is limited shall not be accepted by the 31 department. 32 (b) A financial statement that is accompanied by the 33 report of a certified public accountant licensed in this 34 state. The report must be based upon a review performed by the 35 -13- LSB 5552XD (7) 91 da/js 13/ 36

S.F. _____ H.F. _____ certified public accountant. The report shall be in lieu of an 1 unqualified opinion based on an audit. However, at any time, 2 upon good cause, the department may require the grain dealer to 3 submit to the department a subsequent financial statement that 4 is accompanied by the report. 5 (3) The department shall not require that a grain dealer to 6 submit to the department more than one such unqualified opinion 7 based on an audit per year. 8 (4) A grain dealer shall submit one or more financial 9 statements to the department in addition to the financial 10 statement accompanied by an unqualified opinion based on 11 an audit as required in this paragraph if the department 12 determines that it is necessary to verify the grain dealer’s 13 financial status or compliance with this section . 14 Sec. 32. Section 203.3, subsection 5, paragraph b, Code 15 2026, is amended to read as follows: 16 b. (1) The grain dealer shall submit to the department , 17 as required by the department, a financial statement that is 18 accompanied by an unqualified opinion based upon an audit 19 performed by a certified public accountant licensed in this 20 state. 21 (2) Notwithstanding subparagraph (1), the department may 22 accept any of the following: 23 (a) A qualification in an opinion based on an audit that 24 is unavoidable by any audit procedure that is permitted under 25 generally accepted accounting principles. An opinion that 26 is qualified because of a limited audit procedure or because 27 the scope of an audit is limited shall not be accepted by the 28 department. 29 (b) A financial statement that is accompanied by the 30 report of a certified public accountant licensed in this 31 state. The report must be based upon a review performed by the 32 certified public accountant. The report shall be in lieu of an 33 unqualified opinion based on an audit. However, at any time, 34 upon good cause, the department may require the grain dealer to 35 -14- LSB 5552XD (7) 91 da/js 14/ 36

S.F. _____ H.F. _____ submit to the department a subsequent financial statement that 1 is accompanied by the report. 2 (3) The department shall not require that a grain dealer to 3 submit to the department more than one such unqualified opinion 4 based on an audit per year. 5 (4) A grain dealer shall submit one or more financial 6 statements to the department in addition to the financial 7 statement accompanied by an unqualified opinion based on an 8 audit required in this paragraph if the department determines 9 that it is necessary to verify the grain dealer’s financial 10 status or compliance with this section . 11 Sec. 33. Section 203.8, subsection 2, paragraph a, Code 12 2026, is amended to read as follows: 13 a. (1) “Delivery” Subject to subparagraph (2), “delivery” 14 means the transfer of title to and possession of grain by a 15 seller to a grain dealer or to another person in accordance 16 with the terms of an agreement of by the seller and the grain 17 dealer. 18 (2) Unless title to grain was previously transferred 19 pursuant to an ordinary cash sale contract, title to grain sold 20 by credit-sale contract is deemed to have transferred to the 21 grain dealer, or to another person in accordance with the terms 22 of the credit-sale contract, when all of the following occurs: 23 (a) The credit-sale contract is signed by both the grain 24 dealer and the seller. 25 (b) The grain dealer or the other person has possession 26 of the grain in accordance with the terms of the credit-sale 27 contract. 28 PART B 29 GRAIN OPERATORS 30 Sec. 34. Section 203C.6, subsection 4, paragraph b, Code 31 2026, is amended to read as follows: 32 b. (1) The warehouse operator shall submit to the 33 department , as required by the department, a financial 34 statement that is accompanied by an unqualified opinion based 35 -15- LSB 5552XD (7) 91 da/js 15/ 36

S.F. _____ H.F. _____ upon an audit performed by a certified public accountant 1 licensed in this state. 2 (2) Notwithstanding subparagraph (1), the department may 3 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 13 the certified public accountant. The report shall be in lieu 14 of an unqualified opinion based on an audit. However, at any 15 time, upon good cause, the department may require the warehouse 16 operator to submit to the department a subsequent financial 17 statement that is accompanied by the report. 18 (3) The department shall not require that a warehouse 19 operator to submit to the department more than one such 20 unqualified opinion based on an audit per year. 21 (4) A warehouse operator 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 warehouse 26 operator’s financial status or compliance with this section . 27 Sec. 35. Section 203C.6, subsection 5, paragraph b, Code 28 2026, is amended to read as follows: 29 b. (1) The warehouse operator shall submit to the 30 department , as required by the department, a financial 31 statement that is accompanied by an unqualified opinion based 32 upon an audit performed by a certified public accountant 33 licensed in this state. 34 (2) Notwithstanding subparagraph (1), the department may 35 -16- LSB 5552XD (7) 91 da/js 16/ 36

S.F. _____ H.F. _____ 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 10 the certified public accountant. The report shall be in lieu 11 of an unqualified opinion based on an audit. However, at any 12 time, upon good cause, the department may require the warehouse 13 operator to submit to the department a subsequent financial 14 statement that is accompanied by the report. 15 (3) The department shall not require that a warehouse 16 operator to submit more than one such unqualified opinion based 17 on an audit per year. 18 (4) A warehouse operator 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 21 an audit as required in this paragraph if the department 22 determines that it is necessary to verify the warehouse 23 operator’s financial status or compliance with this section . 24 PART C 25 GRAIN DEPOSITORS AND SELLERS INDEMNIFICATION 26 Sec. 36. Section 203D.3A, subsection 2, Code 2026, is 27 amended by adding the following new paragraph: 28 NEW PARAGRAPH . e. (1) If the per-bushel fee is passed 29 on to a seller, the per-bushel fee shall occur at the time of 30 payment. 31 (2) As used in subparagraph (1), “payment” means the same as 32 defined in section 203.8. 33 Sec. 37. Section 203D.6, subsection 8, paragraph a, Code 34 2026, is amended to read as follows: 35 -17- LSB 5552XD (7) 91 da/js 17/ 36

S.F. _____ H.F. _____ a. Upon a determination by the board that an eligible 1 claim satisfies the requirements in subsection 4 , the board 2 shall indemnify the claimant as a depositor under subsection 3 5 , and a seller under subsection 6 . Upon a determination by 4 the board that an eligible repayment claim was filed by that 5 seller under section 203D.6A , derives from the same covered 6 transaction during the claim period, and the repayment loss 7 incurred for that claim, the board shall indemnify the claimant 8 as a seller subject to the requirements of this section and 9 section 203D.6A . 10 Sec. 38. Section 203D.6A, subsection 2, Code 2026, is 11 amended to read as follows: 12 2. To be timely, a seller must file a repayment claim with 13 the department not later than sixty days after the amount 14 of the seller’s loss is finalized by a bankruptcy court, 15 whether by an order issued, judgment entered, or settlement 16 agreement approved. However, if a seller’s loss is based upon 17 a bankruptcy court’s default judgment, to be timely, the seller 18 must file a repayment claim with the department not later than 19 sixty days after the bankruptcy court’s default judgment is 20 entered or a subsequent settlement agreement is approved and 21 entered, whichever is later. 22 DIVISION VI 23 DEPARTMENT OF TRANSPORTATION REGULATION —— MOTOR VEHICLES 24 PART A 25 MILK HAULERS 26 Sec. 39. Section 321E.29B, subsection 1, Code 2026, is 27 amended to read as follows: 28 1. Notwithstanding section 321E.8 , the department 29 permit-issuing authority may issue annual permits for the 30 operation of vehicles or combinations of vehicles transporting 31 fluid milk products to or from a milk plant, receiving 32 station, or transfer station, exceeding the weight limitation 33 of section 321.463 but not exceeding a gross weight of 34 ninety-six one hundred thirty-six thousand pounds , on primary 35 -18- LSB 5552XD (7) 91 da/js 18/ 36