SF 2420 (LSB 6601SV (2) 91)

SENATE FILE 2420

BY  COMMITTEE ON AGRICULTURE

(SUCCESSOR TO SSB 3123)

A BILL FOR

An Act relating to agriculture, including by providing for the powers and duties of the department of agriculture and land stewardship, including the promotion and regulation of commodities and products, the regulation of the transportation of agricultural commodities, and the use of agricultural land, making penalties applicable, and including effective date provisions.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

DIVISION I
DEPARTMENT OF AGRICULTURE AND LAND STEWARDSHIP —— PROMOTION —— RENEWABLE FUEL INFRASTRUCTURE

    Section 1.  Section 159A.16, subsection 3, paragraphs a, b, and c, Code 2026, are amended to read as follows:
   a.  For each fiscal year, not more than one million seven hundred fifty thousand dollars shall be allocated to support the renewable fuel infrastructure program for retail motor fuel sites as provided in section 159A.14 to finance the installation, replacement, or conversion of biodiesel infrastructure as provided in that section.
   b.  a.  For each fiscal year, not more than one hundred fifty thousand dollars shall be allocated to the department to support the administration of the programs. 
   c.  b.  For each fiscal year, the department may use up to three-quarters of one percent of the program funds to market the programs. Otherwise the moneys shall not be transferred, used, obligated, appropriated, or otherwise encumbered except to allocate as financial incentives under the programs.
DIVISION II
DEPARTMENT OF AGRICULTURE AND LAND STEWARDSHIP —— PROMOTION 

PART A
GENERAL
    Sec. 2.  Section 23A.2, subsection 8, Code 2026, is amended by adding the following new paragraph:
   NEW PARAGRAPH.  p.  An activity carried out by the department of agriculture and land stewardship to promote the marketing of Iowa commodities and products, including as provided in chapters 159 and 187.
    Sec. 3.  Section 187.201, subsection 3, Code 2026, is amended to read as follows:
   3.  Moneys in the fund are appropriated to the department and shall be used exclusively to administer the programs created in this subchapter chapter as determined and directed by the department, and shall not require further special authorization by the general assembly.

PART B
CHOOSE IOWA PROMOTION PROGRAMS
    Sec. 4.  Section 187.301, Code 2026, is amended by adding the following new subsection:
   NEW SUBSECTION.  1A.  The department shall enroll a person as a choose Iowa member who is any of the following:
   a.  Actively participating in the program by producing, processing, or marketing Iowa agricultural products originating as commodities produced on Iowa farms.
   b.  Otherwise supporting the program as required by the department.
    Sec. 5.  Section 187.301, subsection 2, Code 2026, is amended by adding the following new paragraph:
   NEW PARAGRAPH.  c.  The department may adopt rules providing for choose Iowa membership criteria.
    Sec. 6.  Section 187.303, subsections 1 and 2, Code 2026, are amended to read as follows:
   1.  A person may apply to the department to participate enroll as a member in the choose Iowa promotional program according to procedures established by rules adopted by the department. The department shall evaluate and approve or disapprove applications an application based on criteria established by rules adopted by the department. The department may disapprove an application if the department determines the applicant’s use of the choose Iowa logo would be associated with the consumption of an adulterated or illegal food item.
   2.  The department may enter into a licensing agreement with a person participating enrolled as a member in the program. The participating person A member may use the choose Iowa logo to advertise a food item product originating as an agricultural commodity produced on an Iowa farm, subject to terms and conditions required by rules adopted by the department. A licensing agreement shall not be for more than one year.
    Sec. 7.  NEW SECTION.  187.307  Choose Iowa school purchasing program.
   1.  There is created within the department a choose Iowa school purchasing program.
   2.  The department shall administer the program according to all of the following:
   a.  A farm or business shall be eligible to participate in the program if the farm or business is enrolled as a member of the choose Iowa promotional program as provided in this part 1 of subchapter III.
   b.  A school or school district is eligible to participate in the program, if recognized by the department.
   c.  A qualified food product is limited to meat and poultry, dairy products other than milk, grains, flour, eggs, honey, and produce.
   3.  a.  An eligible school or school district purchasing a qualified food product from an eligible farm or business shall be reimbursed on a matching basis with the department contributing one dollar for every one dollar expended by the eligible school or school district.
   b.  The department may establish by rule the method and limitations for determining the amount of funding available to each school or school district under this section.
   c.  Notwithstanding paragraph “b”, if the department determines that there are not sufficient moneys to satisfy all claims that may be submitted by schools and school districts, the department shall provide for the distribution of the available moneys in a manner determined equitable by the department, which may include a prorated distribution to participating schools and school districts.
   4.  The department may administer the program in cooperation with the department of education and the participating school or school district in which a participating school is located.
   5.  The department may use not more than five percent of the moneys appropriated to support the program in a fiscal year to pay for the costs of administering the program.
   6.  The department shall prepare and submit a report regarding its findings and recommendations to the governor and general assembly not later than July 31 of each year.
    Sec. 8.  Section 187.331, Code 2026, is amended to read as follows:
   187.331  Choose Iowa food bank purchasing program.
   1.  There is created within the department a choose Iowa food bank purchasing program.
   2.  The department shall administer the program according to all of the following requirements:
   a.  A farm or business that owns or operates the farm source shall be given a preference to participate in the program if the farm or business is currently participating eligible to participate in the program if the farm or business is enrolled as a member in the choose Iowa promotional program as provided in this part 1 of subchapter III. Otherwise, a farm or business may participate in the program if the farm or business has applied to participate in the choose Iowa promotional program and the department determines that the application will be approved.
   b.  An eligible participant is limited to any Iowa food bank or an Iowa emergency feeding organization, recognized by the department.
   c.  A qualified food product is limited to meat and poultry, dairy products, grains, flour, eggs, honey, and produce.
   3.  a.  Of the moneys appropriated to support the program in a fiscal year, not more than two hundred thousand dollars shall be used to reimburse Iowa food banks and Iowa emergency feeding organizations.
   b.  3.  a.  An eligible participant Iowa food bank or an emergency feeding organization purchasing a qualified food product from an eligible farm or business shall be reimbursed on a matching basis with the department contributing one dollar for every one dollar expended by the eligible participant Iowa food bank or emergency feeding organization.
   c.  b.  An Iowa food bank or Iowa emergency feeding organization shall not receive more than fifty thousand dollars per fiscal year for participating in the program.
   4.  c.  The department may use not more than five percent of the moneys appropriated to support the program in a fiscal year to pay for the costs of administering the program.
   5.  4.  The department shall prepare and submit a report regarding its findings and recommendations to the governor and general assembly not later than January 15 July 31 of each year.
   6.  This section is repealed July 1, 2030.
    Sec. 9.  Section 190A.2, subsections 5 and 9, Code 2026, are amended by striking the subsections.
    Sec. 10.  Section 190A.2, subsection 7, Code 2026, is amended to read as follows:
   7.  “Program” means the farm-to-school program created in section 190A.6 190A.3.
    Sec. 11.  Section 190A.3, subsection 1, Code 2026, is amended to read as follows:
   1.  The A farm-to-school program is created within the department. The program shall seek to link elementary and secondary public and nonpublic schools in this state with Iowa farms to provide schools with fresh and minimally processed food products for inclusion in school meals and snacks, encourage children to develop healthy eating habits, and provide Iowa farmers access to consumer markets.
    Sec. 12.  Section 190A.5, subsection 3, Code 2026, is amended to read as follows:
   3.  Moneys in the fund are appropriated to support the farm-to-school program in a manner determined by the department, including for reasonable administrative costs incurred by the department. However, the department shall not expend more than four percent of moneys existing at any one time in the fund during each fiscal year for purpose of paying costs associated with the administration of the program and fund incurred by the department during that fiscal year. Moneys expended from the fund shall not require further special authorization by the general assembly.
    Sec. 13.  REPEAL.  Section 190A.6, Code 2026, is repealed.
    Sec. 14.  CODE EDITOR DIRECTIVE.
   1.  The Code editor is directed to make the following transfers:
   a.  Section 187.331 to section 187.308.
   b.  Section 159.25 to section 187.309.
   2.  The Code editor shall correct internal references in the Code and in any enacted legislation as necessary due to the enactment of this section.

PART C
INNOVATION AND REVITALIZATION PROGRAMS
    Sec. 15.  Section 187.311, Code 2026, is amended by adding the following new subsection:
   NEW SUBSECTION.  5A.  The department may give priority to an applicant who is a beginning farmer.
    Sec. 16.  NEW SECTION.  187.315  Butchery innovation and revitalization program.
   1.  A butchery innovation and revitalization program is created within the department. The purpose of the program is to promote the development, modernization, and expansion of this state’s butchery industry.
   2.  In administering the program, the department shall award financial assistance to eligible businesses to support projects that do one or more of the following:
   a.  To expand or refurbish an existing, or to establish a new, state-inspected small-scale meat processing business.
   b.  To expand or refurbish an existing, or to establish a new, federally inspected small-scale meat processing business.
   c.  To expand or refurbish an existing, or to establish a new, licensed custom locker.
   d.  To expand or refurbish an existing, or to establish a new, mobile slaughter unit that operates in compliance with the most current mobile slaughter unit compliance guide issued by the United States department of agriculture food safety and inspection service.
   e.  To rent buildings, refrigeration facilities, freezer facilities, or equipment necessary to expand processing capacity, including mobile slaughter or refrigeration units used exclusively for meat or poultry processing.
   3.  The department shall establish eligibility criteria for the program. The eligibility criteria must include all of the following:
   a.  The business must be located in this state.
   b.  The business must not have been subject to any regulatory enforcement action related to federal, state, or local environmental, worker safety, food processing, or food safety laws, rules, or regulations within the last five years.
   c.  The business must only employ individuals legally authorized to work in this state. 
   d.  The business must not currently be in bankruptcy.
   e.  The business must employ less than two hundred full-time nonseasonal individuals.
   4.  An eligible business seeking financial assistance under this section shall make application to the department in the manner and on forms prescribed by the department.
   5.  Applications for financial assistance under this section shall be accepted during one or more annual application periods established by the department. Upon reviewing and scoring all applications that are received during an application period, and subject to the availability of moneys, the department may award financial assistance to eligible businesses. A financial assistance award shall not exceed the amount of eligible project costs included in the eligible business’s application. Priority shall be given to eligible businesses whose proposed project or projects under subsection 2 are most likely to do one or more of the following: 
   a.  Create new jobs. 
   b.  Create or expand opportunities for local small-scale farmers to market processed meat under private labels.
   c.  Provide greater flexibility or convenience for local small-scale farmers to have animals processed.
   6.  An eligible business that is awarded financial assistance under this section may apply for financial assistance under other programs administered by the department.
    Sec. 17.  REPEAL.  Section 15E.370, Code 2026, is repealed.
DIVISION III
DEPARTMENT OF AGRICULTURE AND LAND STEWARDSHIP REGULATION —— ANIMAL HEALTH

    Sec. 18.  Section 163.1, Code 2026, is amended by adding the following new subsection:
   NEW SUBSECTION.  7A.  Lease facilities in order to carry out and administer the provisions of this chapter related to an infectious or contagious disease or a foreign animal disease preparedness and response effort.
    Sec. 19.  NEW SECTION.  163.2B  Confidentiality.
   1.  Notwithstanding section 22.7, all information and records relating to an infectious or contagious disease received or collected by the department pursuant to this chapter, including rules adopted under this chapter by the department, is confidential to the extent it identifies any of the following:
   a.  The name, address, and contact information of any person owning or caring for an animal suspected of or being affected with any infectious or contagious disease.
   b.  Any location where an animal suspected of or being affected with any infectious or contagious disease has been kept. 
   c.  Information that when considered together leads to the identity of a person described in paragraph “a” or a location or premises described in paragraph “b”.
   2.  Notwithstanding subsection 1, the department, in acting as the lawful custodian of the confidential record, may disclose the record or any part of the record if it is deemed necessary by the state veterinarian to protect the public health or the health or well-being of animals within the state.
DIVISION IV
DEPARTMENT OF AGRICULTURE AND LAND STEWARDSHIP —— REGULATION —— WEIGHTS AND MEASURES

    Sec. 20.  Section 210.1, Code 2026, is amended to read as follows:
   210.1  Standard established Weights and measures standards —— compliance with federal law.
   The weights and measures which have been presented by the department to the United States national institute of standards and technology and approved, standardized, and certified by the institute in accordance with the laws of the Congress of the United States shall be the standard weights and measures throughout the state regulated under this chapter shall conform with Iowa’s state primary standard of weights and measures as described in section 215.1B.
    Sec. 21.  Section 213.1, Code 2026, is amended to read as follows:
   213.1  State metrologist.
   The department secretary of agriculture may designate one of its assistants the bureau chief of the department’s weights and measures bureau to act as state metrologist of weights and measures. All weights and measures sealed by the state metrologist shall be impressed with the word “Iowa.”  The bureau chief is the appropriate state official responsible for cooperating with the national institute of standards and technology as defined in section 215.1 and in the administration of weights and measures as regulated in this subtitle.
    Sec. 22.  Section 213.2, Code 2026, is amended to read as follows:
   213.2  Physical United States standards —— conformity.
   Weights and measures, which conform to the standards of the United States national institute of standards and technology existing as of January 1, 1979, that are metrologically traceable to the United States standards supplied by the federal government or approved as being in compliance with its standards recognized by the national bureau institute of standards and technology shall be the Iowa’s state primary standard of weights and measures as verified by the department. Such The traceable standards of weights and measures shall be verified upon their initial receipt of same by the department and as often as deemed necessary by the secretary of agriculture department. The secretary department may provide for the alteration in revise the state primary standard of weights and measures in order to maintain metrological traceability with the standard standards of the United States national institute of standards and technology. All such alterations The verification or revision shall be made pursuant to rules promulgated adopted by the secretary department in accordance with chapter 17A.
    Sec. 23.  Section 214.3, subsection 1, Code 2026, is amended to read as follows:
   1.  A license fee is imposed on a person who uses or displays for use a commercial weighing and measuring device. The license fee is due the day the department issues the license. The amount of the license fee shall be calculated in accordance with the class or section for devices as established by handbook 44 of the United States national institute of standards and technology.
    Sec. 24.  Section 215.1, subsection 1, Code 2026, is amended to read as follows:
   1.  a.  “Commercial weighing and measuring device” or “device” means a weight or measure or weighing or measuring device used to establish size, quantity, area or other quantitative measurement of a commodity sold by weight or measurement, or where when the price to be paid for producing the commodity is based upon the weight or measurement of the commodity. The term
   b.  “Commercial weighing and measuring device” includes an any of the following: 
   (1)  An accessory attached to or used in connection with a commercial weighing or measuring device when the accessory is so designed or installed that its operation may affect the accuracy of the device. “Commercial weighing and measuring device” includes a 
   (2)  A public scale or a commercial scanner.
    Sec. 25.  Section 215.1, Code 2026, is amended by adding the following new subsection:
   NEW SUBSECTION.  3A.  “National institute of standards and technology” means the national institute of standards and technology established within the United States department of commerce pursuant to 15 U.S.C. §272.
    Sec. 26.  Section 215.1A, Code 2026, is amended to read as follows:
   215.1A  Inspections.
   1.  The Except as otherwise expressly provided by statute, the department shall regularly of agriculture and land stewardship may inspect all any commercial weighing and measuring devices, and when device. If the department receives a complaint is made to the department that any false or incorrect alleging weights or measures are being made inaccurately recorded by a device, the department shall inspect the commercial weighing and measuring devices which caused the complaint device.
   2.  The department may inspect a prepackaged goods good to determine the accuracy of their its recorded weights weight.
   3.  a.  The department may order the owner of the device or a service agency that installed, serviced, or repaired the device, to deliver to the department one or more of the service agency’s most recent test reports documenting the device’s accuracy.
   b.  (1)  Except as provided in subparagraph (2), the delivery of a report may be in lieu of an inspection.
   (2)  The department shall provide for an inspection of any of the following:
   (a)  A motor fuel pump as required in section 214.11.
   (b)  A moisture-measuring device as required in section 215A.2.
   (c)  A charging station dispensing electric fuel as required in section 452A.41.
    Sec. 27.  Section 215.14, subsection 3, Code 2026, is amended to read as follows:
   3.  Before approval by the department, the specifications for a commercial weighing and measuring device shall be furnished to the purchaser of the device by the manufacturer. The approval shall be based upon the recommendation of the United States national institute of standards and technology.
    Sec. 28.  Section 215.19, Code 2026, is amended to read as follows:
   215.19  Automatic recorders on scales.
   Except for scales a scale used by packers a packer slaughtering fewer than one hundred twenty head of livestock per day, all scales a scale with a capacity over five hundred pounds, which are used for commercial purposes, in this state, and installed after January 1, 1981, shall be equipped with a type-registering weigh beam, a dial with a mechanical ticket printer, an automatic weight recorder, or some similar commercial weighing and measuring device, which shall be used for printing or stamping the weight values on scale tickets. A scale or similar device equipped with a malfunctioning automatic weight recorder may shall not be used for not more than seven days if the scale or similar device is unable to print or stamp the ticket so long as and only if a repair to the automatic recorder is immediately initiated and the user dates, signs, and accurately handwrites the required information on the ticket until the scale or similar device is operational.
    Sec. 29.  Section 215.23, subsection 2, Code 2026, is amended to read as follows:
   2.  In determining a servicer’s qualifications, the department may consider the specifications of the United States national institute of standards and technology, handbook 44, “Specifications, Tolerances, and Technical Requirements for Weighing and Measuring Devices”, or the current successor or equivalent specifications adopted by the United States national institute of standards and technology.
    Sec. 30.  Section 452A.40, Code 2026, is amended by adding the following new subsection:
   NEW SUBSECTION.  5A.  “National institute of standards and technology” means the same as defined in section 215.1.
    Sec. 31.  REPEAL.  Sections 213.3 and 213.7, Code 2026, are repealed.
    Sec. 32.  CODE EDITOR DIRECTIVE.
   1.  The Code editor is directed to make the following transfers:
   a.  Section 213.1 to section 215.1B.
   b.  Section 213.2 to section 215.1C.
   c.  Section 215.18 to section 215.1D.
   d.  Section 215.1A to section 215.1E.
   2.  The Code editor shall correct internal references in the Code and in any enacted legislation as necessary due to the enactment of this section.
DIVISION V
DEPARTMENT OF AGRICULTURE AND LAND STEWARDSHIP REGULATION —— GRAIN MARKETING 

PART A
GRAIN DEALERS
    Sec. 33.  Section 203.3, subsection 4, paragraph b, Code 2026, is amended to read as follows:
   b.  (1)  The grain dealer shall submit to the department, as required by the department, a financial statement that is accompanied by an unqualified opinion based upon an audit performed by a certified public accountant licensed in this state.
   (2)  Notwithstanding subparagraph (1), if a grain dealer does not purchase grain by credit-sale contract, the department may accept any of the following:
   (a)  A qualification in an opinion based on an audit that is unavoidable by any audit procedure that is permitted under generally accepted accounting principles. An opinion that is qualified because of a limited audit procedure or because the scope of an audit is limited shall not be accepted by the department.
   (b)  A financial statement that is accompanied by the report of a certified public accountant licensed in this state. The report must be based upon a review performed by the certified public accountant. The report shall be in lieu of an unqualified opinion based on an audit. However, at any time, upon good cause, the department may require the grain dealer to submit to the department a subsequent financial statement that is accompanied by the report.
   (3)  The department shall not require that a grain dealer to submit to the department more than one such unqualified opinion based on an audit per year.
   (4)  A grain dealer shall submit one or more financial statements to the department in addition to the financial statement accompanied by an unqualified opinion based on an audit as required in this paragraph if the department determines that it is necessary to verify the grain dealer’s financial status or compliance with this section.
    Sec. 34.  Section 203.3, subsection 5, paragraph b, Code 2026, is amended to read as follows:
   b.  (1)  The grain dealer shall submit to the department, as required by the department, a financial statement that is accompanied by an unqualified opinion based upon an audit performed by a certified public accountant licensed in this state.
   (2)  Notwithstanding subparagraph (1), the department may accept any of the following:
   (a)  A qualification in an opinion based on an audit that is unavoidable by any audit procedure that is permitted under generally accepted accounting principles. An opinion that is qualified because of a limited audit procedure or because the scope of an audit is limited shall not be accepted by the department.
   (b)  A financial statement that is accompanied by the report of a certified public accountant licensed in this state. The report must be based upon a review performed by the certified public accountant. The report shall be in lieu of an unqualified opinion based on an audit. However, at any time, upon good cause, the department may require the grain dealer to submit to the department a subsequent financial statement that is accompanied by the report.
   (3)  The department shall not require that a grain dealer to submit to the department more than one such unqualified opinion based on an audit per year.
   (4)  A grain dealer shall submit one or more financial statements to the department in addition to the financial statement accompanied by an unqualified opinion based on an audit required in this paragraph if the department determines that it is necessary to verify the grain dealer’s financial status or compliance with this section.
    Sec. 35.  Section 203.8, subsection 2, paragraph a, Code 2026, is amended to read as follows:
   a.  (1)  “Delivery” Subject to subparagraph (2), “delivery” means the transfer of title to and possession of grain by a seller to a grain dealer or to another person in accordance with the terms of an agreement of by the seller and the grain dealer.
   (2)  Unless title to grain was previously transferred pursuant to an ordinary cash-sale contract, title to grain sold by credit-sale contract is deemed to have transferred to the grain dealer when all of the following occurs:
   (a)  The credit-sale contract is signed by both the grain dealer and the seller.
   (b)  The grain dealer has possession of the grain or another person has possession of the grain in accordance with the terms of the credit-sale contract.
    Sec. 36.  Section 203.12, subsection 1, Code 2026, is amended to read as follows:
   1.  Upon the cessation of a grain dealer license by revocation, cancellation, or expiration pursuant to section 203.10 or upon the filing of a petition in bankruptcy by a grain dealer, any claim for the purchase price of grain against the grain dealer shall be made in writing and filed with the grain dealer and with the issuer of a deficiency bond or of an irrevocable letter of credit and with the department within one hundred twenty days after the date of the cessation or the filing of a petition in bankruptcy, whichever occurs earlier. A failure to make this timely claim relieves the issuer and the grain depositors and sellers indemnity fund provided in chapter 203D of all obligations to the claimant.
    Sec. 37.  Section 203.12A, subsection 5, Code 2026, is amended to read as follows:
   5.  The Iowa grain indemnity fund board, upon written demand of the grain dealer, shall file a termination statement with the secretary of state, if after one hundred eighty days from the date that the lien is perfected the grain dealer’s license has not ceased by revocation, cancellation, or expiration pursuant to section 203C.10. Upon filing the termination statement, the lien becomes unperfected. The board shall also deliver a copy of the termination statement to the grain dealer.

PART B
GRAIN OPERATORS
    Sec. 38.  Section 203C.6, subsection 4, paragraph b, Code 2026, is amended to read as follows:
   b.  (1)  The warehouse operator shall submit to the department, as required by the department, a financial statement that is accompanied by an unqualified opinion based upon an audit performed by a certified public accountant licensed in this state.
   (2)  Notwithstanding subparagraph (1), the department may accept any of the following:
   (a)  A qualification in an opinion based on an audit that is unavoidable by any audit procedure that is permitted under generally accepted accounting principles. An opinion that is qualified because of a limited audit procedure or because the scope of an audit is limited shall not be accepted by the department.
   (b)  A financial statement that is accompanied by the report of a certified public accountant licensed in this state. The report must be based upon a review performed by the certified public accountant. The report shall be in lieu of an unqualified opinion based on an audit. However, at any time, upon good cause, the department may require the warehouse operator to submit to the department a subsequent financial statement that is accompanied by the report.
   (3)  The department shall not require that a warehouse operator to submit to the department more than one such unqualified opinion based on an audit per year.
   (4)  A warehouse operator shall submit one or more financial statements to the department in addition to the financial statement accompanied by an unqualified opinion based on an audit as required in this paragraph if the department determines that it is necessary to verify the warehouse operator’s financial status or compliance with this section.
    Sec. 39.  Section 203C.6, subsection 5, paragraph b, Code 2026, is amended to read as follows:
   b.  (1)  The warehouse operator shall submit to the department, as required by the department, a financial statement that is accompanied by an unqualified opinion based upon an audit performed by a certified public accountant licensed in this state.
   (2)  Notwithstanding subparagraph (1), the department may accept any of the following: 
   (a)  A qualification in an opinion based on an audit that is unavoidable by any audit procedure that is permitted under generally accepted accounting principles. An opinion that is qualified because of a limited audit procedure or because the scope of an audit is limited shall not be accepted by the department.
   (b)  A financial statement that is accompanied by the report of a certified public accountant licensed in this state. The report must be based upon a review performed by the certified public accountant. The report shall be in lieu of an unqualified opinion based on an audit. However, at any time, upon good cause, the department may require the warehouse operator to submit to the department a subsequent financial statement that is accompanied by the report.
   (3)  The department shall not require that a warehouse operator to submit more than one such unqualified opinion based on an audit per year.
   (4)  A warehouse operator shall submit one or more financial statements to the department in addition to the financial statement accompanied by an unqualified opinion based on an audit as required in this paragraph if the department determines that it is necessary to verify the warehouse operator’s financial status or compliance with this section.
    Sec. 40.  Section 203C.12A, subsection 5, Code 2026, is amended to read as follows:
   5.  The Iowa grain indemnity fund board shall upon written demand of the warehouse operator file a termination statement with the secretary of state, if after one hundred eighty days from the date that the lien is perfected the warehouse operator’s license has not ceased by revocation, cancellation, or expiration pursuant to section 203C.10. Upon filing the termination statement, the lien becomes unperfected. The board shall also deliver a copy of the termination statement to the warehouse operator.
    Sec. 41.  Section 203C.14, subsection 2, paragraphs a and c, Code 2026, are amended to read as follows:
   a.  Upon the cessation of a warehouse operator’s license due to revocation, cancellation, or expiration pursuant to section 203C.10 or upon the filing of a petition in bankruptcy by a warehouse operator, a claim against the warehouse operator arising under this chapter shall be made in writing with the warehouse operator, with the issuer of a bond on agricultural products other than bulk grain, a deficiency bond, or an irrevocable letter of credit, and, if the claim relates to bulk grain, with the department. The claim must be made within one hundred twenty days after the cessation of the license or the filing of a petition in bankruptcy, whichever occurs earlier. The failure to make a timely claim relieves the issuer and, if the claim relates to bulk grain, the grain depositors and sellers indemnity fund provided in chapter 203D of all obligations to the claimant.
   c.  This subsection does not apply if a receiver is appointed as provided in this chapter pursuant to a petition which that is filed by the department prior to the expiration of one hundred twenty days after cessation of a warehouse operator’s license pursuant to section 203C.10.
    Sec. 42.  Section 203C.18, subsection 3, Code 2026, is amended to read as follows:
   3.  A form for a warehouse receipt shall only be printed by a person approved by the department. A form for a warehouse receipt shall be printed in accordance with specifications set forth by the department. A warehouse operator shall surrender to the department all forms for warehouse receipts that are unused at the time that the warehouse operator’s license is suspended or ceases due to revocation, cancellation, or expiration pursuant to section 203C.10. The warehouse operator shall surrender the warehouse receipts in a manner required by the department.

PART C
GRAIN DEPOSITORS AND SELLERS INDEMNIFICATION
    Sec. 43.  Section 203D.3A, subsection 2, Code 2026, is amended by adding the following new paragraph:
   NEW PARAGRAPH.  e.  (1)  If the per-bushel fee is passed on to a seller, the per-bushel fee shall occur at the time of payment.
   (2)  As used in subparagraph (1), “payment” means the same as defined in section 203.8.
    Sec. 44.  Section 203D.6, subsection 8, paragraph a, Code 2026, is amended to read as follows:
   a.  Upon a determination by the board that an eligible claim satisfies the requirements in subsection 4, the board shall indemnify the claimant as a depositor under subsection 5, and a seller under subsection 6. Upon a determination by the board that an eligible repayment claim was filed by that seller under section 203D.6A, derives from the same covered transaction during the claim period, and the repayment loss incurred for that claim, the board shall indemnify the claimant as a seller subject to the requirements of this section and section 203D.6A.
    Sec. 45.  Section 203D.6A, subsection 2, Code 2026, is amended to read as follows:
   2.  To be timely, a seller must file a repayment claim with the department not later than sixty days after the amount of the seller’s loss is finalized by a bankruptcy court, whether by an order issued, judgment entered, or settlement agreement approved.  However, if a seller’s loss is based upon a bankruptcy court’s default judgment, to be timely, the seller must file a repayment claim with the department not later than sixty days after the bankruptcy court’s default judgment is entered or a subsequent settlement agreement is approved and entered, whichever is later.
DIVISION VI
DEPARTMENT OF TRANSPORTATION REGULATION —— MOTOR VEHICLES

PART A
MILK HAULERS
    Sec. 46.  Section 321E.29B, subsection 1, Code 2026, is amended to read as follows:
   1.  Notwithstanding section 321E.8, the department permit-issuing authority may issue annual permits for the operation of vehicles or combinations of vehicles transporting fluid milk products to or from a milk plant, receiving station, or transfer station, exceeding the weight limitation of section 321.463 but not exceeding a gross weight of ninety-six one hundred thirty-six thousand pounds, on primary roads and primary road extensions in cities.  The department shall establish rules regarding minimum distances for axle configurations.
    Sec. 47.  EFFECTIVE DATE.  This part of this division of this Act takes effect January 1, 2027.

PART B
IMPLEMENTS OF HUSBANDRY
    Sec. 48.  Section 321.457, subsection 2, paragraph f, Code 2026, is amended to read as follows:
   f.  (1)  A trailer or semitrailer, laden or unladen, shall not have an overall length in excess of fifty-three feet when operating in a truck tractor-semitrailer combination exclusive of retractable extensions used to support the load. However, when a trailer or semitrailer is used exclusively for the transportation of passenger vehicles, light delivery trucks, panel delivery trucks, pickup trucks, recreational vehicle chassis, or boats, the load carried on the trailer or semitrailer may extend up to three feet beyond the front bumper and up to four feet beyond the rear bumper of the trailer or semitrailer.
   (2)  A lowboy semitrailer, laden or unladen, which that is designed and exclusively used for the transportation of either construction equipment or an implement of husbandry shall not have an overall length in excess of fifty-seven feet when used in a truck tractor-semitrailer combination.
DIVISION VII
AGRICULTURAL TOURISM

    Sec. 49.  Section 673A.3, subsection 6, paragraph b, Code 2026, is amended to read as follows:
   b.  “Farm” includes but is not limited to a farm field, orchard, tree farm, nursery, greenhouse, garden, elevator, seedhouse, barn, warehouse, animal feeding operation structure, winery, brewery, distillery, or any personal property located on the land including machinery or equipment used in the production of a farm commodity.
    Sec. 50.  Section 673A.3, subsection 9, Code 2026, is amended to read as follows:
   9.  “Farm crop” means a plant or fungus used for food, animal feed, fiber, or oil, energy, or decoration, including any of the following:
   a.  A forage or cereal plant, including but not limited to alfalfa, barley, buckwheat, corn, flax, forage, millet, oats, popcorn, rye, sorghum, soybeans, sunflowers, wheat, and grasses used for forage or silage.
   b.  Edible or ornamental produce, including but not limited to fruit such as apples, cherries, peaches, pears, berries, and grapes; vegetables such as asparagus, broccoli, and carrots; lentils; tubers; squashes and pumpkins; gourds; nuts; maple syrup; mushrooms; Christmas trees; and flowers.
   c.  Honey.
DIVISION VIII
LAND USE

    Sec. 51.  Section 335.2, Code 2026, is amended by adding the following new subsection:
   NEW SUBSECTION.  4.  As used in subsection 1, an agricultural purpose includes but is not limited to an agricultural tourism activity or event, value-added agricultural processing, direct-to-consumer marketing, or other on-farm enterprises that support the economic viability of the farm.
    Sec. 52.  Section 335.28, Code 2026, is amended to read as follows:
   335.28  Agricultural experiences experience.
   1.  a.  For purposes of this section, “agricultural experience” includes but is not limited to any agriculture-related activity, or agriculture-related event, as a that constitutes a secondary use in conjunction with agricultural production, on a farm which if the agriculture-related activity, or agriculture-related event, is located on a farm and open to the public with for the intended purpose of promoting or educating the public about agriculture, agricultural practices, agricultural activities, or agricultural products.
   b.  “Agricultural experience” also includes any of the following:
   (1)  Agricultural tourism activities, such as recreational, entertainment, dining, or celebratory events, or short-term rental opportunities offered on a working farm, so long as the farm’s primary use remains agricultural production.
   (2)  A fair event conducted on a fairgrounds under the management or control of a fair as defined in section 174.1.
   2.  To assist in the promotion of agricultural experiences, a county shall not require a conditional use permit, special use permit, special exception, or variance for an agricultural experiences experience on property of which the primary use is agricultural production.
    Sec. 53.  EFFECTIVE DATE.  This division of this Act, being deemed of immediate importance, takes effect upon enactment.
    Sec. 54.  APPLICABILITY.  Any conditional use permit, special use permit, special exception, or variance described in section 335.28, as amended by this division of this Act, is void and unenforceable.
EXPLANATION
The inclusion of this explanation does not constitute agreement with

the explanation’s substance by the members of the general assembly.
   GENERAL. This bill amends a number of Code chapters relating to agriculture, including providing for the powers and duties of the department of agriculture and land stewardship (DALS). The bill provides for the promotion and regulation of commodities and regulation by DALS, including fees, and the transportation of agricultural items by the department of transportation (DOT). The bill provides for the use of agricultural land, including agricultural tourism.
   DIVISION I —— DEPARTMENT OF AGRICULTURE AND LAND STEWARDSHIP —— PROMOTION —— RENEWABLE FUEL INFRASTRUCTURE —— BACKGROUND.  Code chapter 159A, subchapter II, authorizes DALS to administer a renewable fuel infrastructure program for retail motor fuel sites (Code section 159.14) and a renewable fuel infrastructure program for biodiesel terminal facilities (Code section 159A.15). The purpose of the program is to finance the improvement of facilities used to store, blend, or dispense renewable fuels, commonly derived from corn or soybeans. The programs are supported by the renewable fuel infrastructure fund (Code section 159A.16), which is appropriated $5 million each fiscal year (Code section 159.17).
   DIVISION I —— DEPARTMENT OF AGRICULTURE AND LAND STEWARDSHIP —— PROMOTION —— RENEWABLE FUEL INFRASTRUCTURE —— BILL’S PROVISIONS. This division increases the amount of moneys appropriated from the renewable fuel infrastructure fund each fiscal year for administrative costs incurred by DALS from $100,000 to $150,000.
   DIVISION II —— DEPARTMENT OF AGRICULTURE AND LAND STEWARDSHIP —— PROMOTION —— BACKGROUND. Code chapter 189 authorizes DALS to administer a number of programs providing for the promotion of agriculture in this state. The Code chapter provides for the financing of the programs, including the creation of a choose Iowa fund (Code section 187.201). The Code chapter provides for a choose Iowa promotional program that supports the marketing of agricultural commodities and processed products originating from Iowa farms (Code section 187.301). The choose Iowa program allows a person to register as a seller of Iowa commodities and products and receives the right to use a legally protected logo under a paid license (Code sections 187.302 and 187.303). The Code chapter includes a choose Iowa food purchasing program that supports Iowa food banks and emergency feeding operations (Code section 187.311). A farm or business enrolled in the choose Iowa program is provided a preference to participate in the choose Iowa food purchasing program. Under Code chapter 190A, DALS also administers a farm-to-school program to support schools and school districts in purchasing food products derived from food commodities produced on Iowa farms (Code section 190A.6). A dairy innovation program authorizes DALS to provide financing to an eligible business in the form of a grant, low-interest loan, or forgivable loan in order to expand dairy processing capacity in Iowa (Code section 187.311).
   PART A —— GENERAL —— BILL’S PROVISIONS. This part creates an exception to a provision that restricts state agencies from engaging in an activity that competes with a private enterprise (Code section 23A.2). The part amends the choose Iowa program by providing for the enrollment of persons actively engaged in producing, processing, or marketing Iowa agricultural products.
   PART B —— CHOOSE IOWA PROMOTIONAL PROGRAMS —— BILL’S PROVISIONS. Under this part, DALS may adopt administrative rules providing for criteria for enrollment in the choose Iowa promotion program. The part establishes a choose Iowa school purchasing program based on the current farm-to-school program, which is eliminated. Under the new program, an eligible participant is reimbursed on a matching basis with DALS contributing $1 for every $1 expended by the eligible participant. The division renames the choose Iowa food purchasing program to the choose Iowa food bank program. The part provides that to participate in the program, a farm or business must be enrolled as a member of the choose Iowa promotional program. The part eliminates a provision providing that not more than $200,000 may be used by DALS to reimburse Iowa food banks and Iowa emergency feeding organizations. The part eliminates a provision that terminates the program on July 1, 2030. Finally, the part transfers several Code sections including Code section 159.25, which establishes an Iowa seal for agricultural products.
   PART C —— INNOVATION AND REVITALIZATION PROGRAMS —— BILL’S PROVISIONS. This part provides priority to a beginning farmer applying to participate in the dairy innovation and revitalization program. The part creates a butchery innovation revitalization program, modeled on the dairy innovation and revitalization program, that promotes the development, modernization, and expansion of this state’s butchery industry. The part also eliminates a similar program administered by the economic development authority (Code section 15E.370).
   DIVISION III —— DEPARTMENT OF AGRICULTURE AND LAND STEWARDSHIP REGULATION —— ANIMAL HEALTH —— BACKGROUND. Code chapter 163 authorizes DALS to regulate animal health and specifically control infectious or contagious diseases (disease) afflicting livestock populations (Code chapter 163). The term “control” refers to prevention, suppression, or eradication efforts (Code section 163.2).
   DIVISION III —— ANIMAL HEALTH —— BILL’S PROVISIONS. This division authorizes DALS to lease facilities in order to control an infectious or contagious disease or provide for a foreign animal disease preparedness and response effort (Code section 162.2A). The division also provides that notwithstanding Code chapter 22, information collected by DALS relating to such disease is confidential, if the information identifies the name, address, and contact information of a person owning or caring for an animal suspected of or being affected with a disease; or any location where an animal suspected of or being affected with the disease has been kept.
   DIVISION IV —— DEPARTMENT OF AGRICULTURE AND LAND STEWARDSHIP REGULATION —— WEIGHTS AND MEASURES —— BACKGROUND.  DALS is authorized to regulate standard weights and measures under a number of Code chapters, with many of its provisions first published in the 1851 Code (Code chapters 210, 213, 214, and 215). Generally, standards must comply with or be supplied by the federal government or approved as being in compliance with those established by a United States agency, the national institute of standards and technology (NIST). Many of Iowa’s Code provisions regulating standards provide for the inspection of commercial weighing and measuring devices that are used to establish size, quantity, area, or another quantitative measurement of a commodity when sold (Code section 215.1).
   DIVISION IV —— DEPARTMENT OF AGRICULTURE AND LAND STEWARDSHIP —— REGULATION —— WEIGHTS AND MEASURES —— BILL’S PROVISIONS. This division provides that the secretary of agriculture may designate the bureau chief of the department’s weights and measures bureau to act as the state metrologist of weights and measures (Code section 213.1). The state metrologist is authorized to cooperate with NIST. A provision requiring all weights and measures sealed by the state metrologist to be impressed with the word “Iowa” is eliminated. The division provides that DALS is no longer required to inspect all commercial weighing and measuring devices unless it receives a complaint (Code section 215.1A). In lieu of an inspection, DALS may order the owner of the device or a service agency that installed, serviced, or repaired the device, to deliver to DALS one or more of the service agency’s most recent test reports documenting the device’s accuracy. Several exceptions apply that require the inspection of a device including a motor fuel pump (Code section 214.11), a moisture-measuring device (Code section 215A.2), and a charging station (Code section 452A.41). The division makes several changes to enhance the Code’s readability including updating or correcting references to Code chapter 215. The division eliminates a provision that requires DALS to conduct a test of a measuring device based on a request of any person (Code section 213.3) and a provision requiring a city to pay for expenses directly incurred in furnishing a city with standards (Code section 213.7).
   DIVISION V —— DEPARTMENT OF AGRICULTURE AND LAND STEWARDSHIP REGULATION —— GRAIN MARKETING —— BACKGROUND. DALS regulates grain marketing transactions under three interrelated Code chapters. The first two Code chapters regulate grain marketers, including Code chapter 203 providing for the regulation of a grain dealer purchasing grain from a seller and Code chapter 203C providing for the regulation of a warehouse operator storing grain for a depositor. Code chapter 203D establishes the grain depositors and sellers indemnity fund (indemnity fund) created to indemnify a seller or depositor against a financial loss due to the management of the grain by grain dealer or warehouse operator. 
   Under Code chapter 203, in a cash sale transaction, a grain dealer must pay the seller the purchase price for grain upon the grain’s delivery or upon demand for payment by the seller (Code section 203.8). Delivery occurs when title to and possession of the grain is transferred to the grain dealer or another person in accordance with the terms of the contract (Code section 203.8). One special type of sale is the use of a credit-sale contract in which a grain dealer enters a contract with a seller for the sale of grain and delivery of the grain has occurred but payment has not been made either because the price has not been agreed to (a deferred-pricing contract) or the price has been agreed to but payment is to be made more than 30 days later (a deferred-payment contract) (Code section 203.15). Under both Code chapters 203 and 203C, DALS regulates a grain dealer and warehouse operator by issuing a license and conducting inspections of their business operations. A grain dealer or warehouse operator must be issued either a class 1 or class 2 license based on the size of the business operation with a class 1 license requiring higher net worth requirements (Code sections 203.3 and 203C.6). However, a class 1 license is required for a grain dealer who enters into a credit-sale contract regardless of the size of the grain dealer’s operation. A class 1 or class 2 licensee must annually submit to DALS a financial statement accompanied by an unqualified opinion based upon an audit performed by a certified public accountant (CPA) licensed in this state. In 2025, the general assembly enacted 2025 Iowa Acts, chapter 105 (2025 Act), which eliminated provisions that allowed a licensed grain dealer or licensed grain warehouse operator to submit a financial statement accompanied by a report of a state-licensed CPA based upon a review in lieu of an unqualified opinion. The 2025 Act allowed the indemnity fund to cover a loss arising from a deferred-payment contract (Code sections 203D.6 and 203D.6A). The 2025 Act also provided a separate process for a seller to be indemnified for a loss resulting from the seller having received from the grain dealer an amount from the purchased grain that the seller was required to later pay back to the grain dealer’s bankruptcy estate (Code section 203D.6A). A license of a grain dealer or warehouse operator may cease due to any one of three causes, including revocation by DALS, cancellation by the grain dealer, or the expiration of the license by operation of law. All of these causes are covered under Code sections 203.10 and 203C.10. Upon any of these causes, a seller may claim the purchase price for the sold grain, which may trigger a claim for a loss under the indemnity fund.
   DIVISION V —— DEPARTMENT OF AGRICULTURE AND LAND STEWARDSHIP —— REGULATION —— GRAIN MARKETING —— BILL’S PROVISIONS. Parts A and B of this division amend Code sections 203.3 and 203C.6A by allowing a grain dealer (except a grain dealer entering into a credit-sale contract) or a warehouse operator to again submit a financial statement accompanied by a report of a state-licensed CPA based upon a review in lieu of an unqualified opinion. Parts A and B of the division amend Code section 203.8 by providing that unless title to grain was previously transferred pursuant to an ordinary cash sale contract, title to grain sold by credit-sale contract is deemed to have transferred to the grain dealer upon two conditions: (1) the credit-sale contract is signed by both the grain dealer and the seller and (2) the grain dealer or another person has possession of the grain in accordance with the terms of the credit-sale contract. The bill provides that a claim for a loss incurred by a seller or depositor may be triggered by the filing of a bankruptcy petition by a grain dealer or warehouse operator. The bill also amends a number of provisions that refer to the revocation, cancellation, or expiration of the license by instead referring to either Code section 203.10 or 203C.10, which describe those types of actions. Part C of the division amends Code section 203D.6 by providing for the indemnification of a seller for grain purchased by a grain dealer that the seller was required to pay back later in bankruptcy. The claim may proceed upon a determination that an eligible repayment claim was filed with DALS by the seller as required by statute. Finally, part C of the division amends Code section 203D.6A by providing for the timeliness of a repayment claim in the case of a bankruptcy court’s default judgment. In that case, the seller must file a claim not later than 60 days after the court’s judgment or a settlement agreement is approved, whichever is later.
   DIVISION VI —— DEPARTMENT OF TRANSPORTATION REGULATION —— MOTOR VEHICLES. This division provides for the regulation of persons moving agricultural items on state highways and roads.
   PART A —— MILK HAULERS —— BACKGROUND. Under Code chapter 321E, the department of transportation (DOT) and local authorities regulate the weight of motor vehicles traveling on a street, road, or highway, including by issuing permits (Code section 321E.2). DOT is authorized to issue annual permits for the operation of vehicles or combinations of vehicles transporting fluid milk products to or from a milk plant, receiving station, or transfer station. The weight limitation is 96,000 pounds on primary roads and primary road extensions in cities. A person who violates the weight provisions is subject to a fine according to a schedule based on the number of pounds of overload beginning at $12.
   PART A —— MILK HAULERS —— BILL’S PROVISIONS. This part increases the weight limit to 136,000 pounds. DOT is required to adopt rules governing minimum distances for axle configurations. The part takes effect January 1, 2027.
   PART B —— IMPLEMENTS OF HUSBANDRY —— BACKGROUND. Code section 321.457 regulates the maximum length of a motor vehicle or combination of vehicles operated on the highways of this state. A trailer or semitrailer cannot have an overall length in excess of 53 feet when operating in a truck tractor-semitrailer combination. However, a lowboy semitrailer that is designed and exclusively used for the transportation of construction equipment may have an overall length not in excess of 57 feet. A person who violates the length requirement is subject to a scheduled fine of $260 (Code section 805.8A).
   PART B —— IMPLEMENTS OF HUSBANDRY —— BILL’S PROVISIONS. This part provides that an implement of husbandry (a vehicle or equipment used in agricultural production) has the same feet requirement as construction equipment.
   DIVISION VII —— AGRICULTURAL TOURISM —— BACKGROUND. Code chapter 673A, referred to as the “Iowa Agricultural Tourism Promotion Act” (Code section 673A.1), limits the liability of certain persons involved in agricultural tourism on a farm (agricultural tourism farm) when a cause of action by a visitor to the farm (agricultural tourist) alleges an injury, loss, or death due to any of the following: (1) an inherent risk of farming associated with a farming activity, (2) the failure of the agricultural tourist to comply with an instruction while visiting the agricultural tourism farm, or (3) the injury, loss, or death occurred at a place a reasonable person would not enter, which may be based on a posted notice (Code section 673A.4).
   DIVISION VII —— AGRICULTURAL TOURISM —— BILL’S PROVISIONS.  This division expands the scope of the liability protection provided to persons engaged in agricultural tourism by amending definitions in Code section 673A.3. The division provides that a farm includes a tree farm, and that a farm crop includes a plant used for energy or decoration. The division also provides that a farm crop described as edible or ornamental produce includes nuts, maple syrup, mushrooms, and Christmas trees. Finally, a farm crop includes honey.
   DIVISION VIII —— LAND USE —— BACKGROUND. Code chapter 335 provides for county zoning. Code section 335.27 provides that a county zoning ordinance does not apply to land, a farm house, farm barn, farm outbuilding, or other building or structure that is primarily adapted for an agricultural purpose. Code chapter 335.28 provides that a county cannot require a conditional use permit, special use permit, special exception, or variance for agricultural experiences on property primarily used for agricultural production. An agricultural experience is defined to include an agriculture-related activity, as a secondary use in conjunction with agricultural production, on a farm, which activity is open to the public.
   DIVISION VIII —— LAND USE —— BILL’S PROVISIONS. This division amends Code section 335.2 by providing that an agricultural purpose includes an agricultural tourism activity or event, value-added agricultural processing, direct-to-consumer marketing, or other farm-based enterprise that supports the economic viability of a farm. The division amends Code section 335.28 by providing that an agricultural experience also includes any of the tourism activities, such as recreational, entertainment, dining, or celebratory events, or short-term rental opportunities offered on a working farm, so long as the farm’s primary use remains agricultural production. Finally, an agricultural experience includes a fair event conducted on a fairgrounds under the management or control of a county or district fair or agricultural society. The division takes effect upon enactment.