House File 666 - Reprinted HOUSE FILE 666 BY COMMITTEE ON WAYS AND MEANS (SUCCESSOR TO HF 277) (SUCCESSOR TO HSB 113) (As Amended and Passed by the House April 11, 2023 ) A BILL FOR An Act providing for programs and regulations administered 1 and enforced by the department of agriculture and land 2 stewardship, providing fees, providing for the allocation of 3 moneys, making penalties applicable, and including effective 4 date provisions. 5 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 6 HF 666 (3) 90 da/ns/md

H.F. 666 DIVISION I 1 REGULATION OF COMMERCIAL ESTABLISHMENTS 2 Section 1. Section 162.2, subsection 19, Code 2023, is 3 amended by striking the subsection and inserting in lieu 4 thereof the following: 5 19. “Pet shop” means a facility where vertebrate animals, 6 excluding fish, not born and reared on the facility’s premises 7 are bought, sold, exchanged, or offered for sale or exchange to 8 the public, at retail. “Pet shop” does not include a facility 9 if one of the following applies: 10 a. The facility receives less than one thousand dollars from 11 the sale or exchange of vertebrate animals, excluding fish, 12 during a twelve-month period. 13 b. The facility sells or exchanges less than twelve 14 vertebrate animals, excluding fish, during a twelve-month 15 period. 16 Sec. 2. Section 162.2A, subsection 3, paragraph d, Code 17 2023, is amended to read as follows: 18 d. The person’s An official government-issued photo 19 identification number of the person . Notwithstanding chapter 20 22 , the department shall keep the person’s tax identification 21 number confidential except for purposes of tax administration 22 by the department of revenue, including as provided in section 23 421.18 . 24 DIVISION II 25 GRAIN REGULATION 26 PART A 27 GRAIN DEALERS 28 Sec. 3. Section 203.1, Code 2023, is amended by adding the 29 following new subsection: 30 NEW SUBSECTION . 12A. “Scale weight ticket” means the same 31 as defined in section 203C.1. 32 Sec. 4. Section 203.5, subsection 8, paragraph a, Code 2023, 33 is amended to read as follows: 34 a. The applicant has caused liability to the Iowa grain 35 -1- HF 666 (3) 90 da/ns/md 1/ 13

H.F. 666 depositors and sellers indemnity fund in regard to a license 1 issued under this chapter or chapter 203C , and the liability 2 has not been discharged, settled, or satisfied. 3 Sec. 5. Section 203.11, subsection 2, paragraph a, 4 subparagraph (3), Code 2023, is amended to read as follows: 5 (3) Uses a scale weight ticket or credit-sale contract in 6 violation of this chapter or a requirement established by the 7 department under this chapter . 8 Sec. 6. Section 203.15, subsection 2, paragraph f, Code 9 2023, is amended to read as follows: 10 f. The duration of the credit-sale contract, which shall 11 not exceed twelve fifteen months from the date the contract is 12 executed. 13 Sec. 7. Section 203.17, Code 2023, is amended to read as 14 follows: 15 203.17 Documents and records. 16 1. The department may adopt rules specifying the form, 17 content, use, and maintenance of documents issued by a grain 18 dealer under this chapter including but not limited to scale 19 weight tickets, settlement sheets, daily position records, and 20 credit-sale contracts. The department may adopt rules for 21 both printed and electronic documents, including rules for 22 the transmission, receipt, authentication, and archiving of 23 electronically generated or stored documents. 24 2. All scale weight ticket forms in the possession of a 25 grain dealer shall have been permanently and consecutively 26 numbered at the time of printing. A grain dealer shall 27 maintain an accurate record of all scale weight ticket numbers. 28 The record shall include the disposition of each numbered form, 29 whether issued, destroyed, or otherwise disposed of. 30 Sec. 8. Section 203.20, Code 2023, is amended to read as 31 follows: 32 203.20 Shrinkage adjustments —— disclosures —— penalties. 33 1. A person who, in connection with the receipt of 34 corn or soybeans grain for storage, processing, or sale, 35 -2- HF 666 (3) 90 da/ns/md 2/ 13

H.F. 666 adjusts the scale weight of the grain to compensate for the 1 moisture content of the grain shall compute the amount of 2 the adjustment by multiplying the scale weight of the grain 3 by that factor which results in a rate of adjustment of one 4 and eighteen hundredths percent of weight per one percent of 5 moisture content. The use of person who uses any rate of 6 weight adjustment for moisture content other than the one 7 prescribed by this subsection is commits a fraudulent practice 8 as defined in section 714.8 . The person shall post on the 9 business premises in a conspicuous place notice of the rate 10 of adjustment for moisture content that is as prescribed by 11 this subsection . Failure The person who fails to make this 12 disclosure is commits a simple misdemeanor. 13 2. A person who, in connection with the receipt of grain for 14 storage, processing , or sale, adjusts the quantity of the grain 15 received to compensate for losses to be incurred during the 16 handling, processing, or storage of the grain shall post on the 17 business premises in a conspicuous place notice of the rate of 18 adjustment to be made for this shrinkage. Failure The person 19 who fails to make the required this disclosure is commits a 20 simple misdemeanor. 21 3. A person who adjusts the scale weight of corn or soybeans 22 both grain for moisture content and for handling, processing, 23 or storage losses may combine the two adjustment factors into 24 a single factor and may use this resulting factor to compute 25 the amount of weight adjustment in connection with storage, 26 processing, or sale transactions, provided that the person 27 shall post on the business premises in a conspicuous place a 28 notice that discloses the moisture shrinkage factor prescribed 29 by subsection 1 , the handling shrinkage factor to be imposed, 30 and the single factor that results from combining these 31 factors. Failure The person who fails to make the required 32 this disclosure is commits a simple misdemeanor. 33 PART B 34 WAREHOUSE OPERATORS 35 -3- HF 666 (3) 90 da/ns/md 3/ 13

H.F. 666 Sec. 9. Section 203C.5, subsection 2, Code 2023, is amended 1 to read as follows: 2 2. a. The department may adopt rules specifying the 3 form, content, and use of documents issued by a warehouse 4 operator under this chapter including but not limited to scale 5 weight tickets, warehouse receipts, settlement sheets, and 6 daily position records. The department may adopt rules for 7 both printed and electronic documents, including rules for 8 the transmission, receipt, authentication, and archiving of 9 electronically generated or stored documents. 10 b. All scale weight ticket forms and warehouse receipt 11 forms in the possession of a warehouse operator shall have been 12 permanently and consecutively numbered at the time of printing. 13 A warehouse operator shall maintain an accurate record of 14 the numbers of these documents. The record shall include 15 the disposition of each form, whether issued, destroyed, or 16 otherwise disposed of. The department may by rule require this 17 use of prenumbered forms and recording for documents other than 18 scale weight tickets and warehouse receipts. 19 Sec. 10. Section 203C.6, subsection 8, paragraph a, Code 20 2023, is amended to read as follows: 21 a. The applicant has caused liability to the Iowa grain 22 depositors and sellers indemnity fund through operations under 23 a license issued under this chapter or chapter 203 , and the 24 liability has not been discharged, settled, or satisfied. 25 Sec. 11. Section 203C.17, subsections 1, 2, 3, 4, and 5, 26 Code 2023, are amended to read as follows: 27 1. Any grain which has been received at any Grain deposited 28 with a licensed warehouse operator for which the actual sale 29 price is has not been fixed and either proper documentation 30 made has not been furnished or payment has not been made shall 31 be construed to be grain held for storage within the meaning of 32 this chapter . Grain may be held considered stored grain and 33 may be retained in open storage or placed on under warehouse 34 receipt. A warehouse receipt shall be issued for all grain 35 -4- HF 666 (3) 90 da/ns/md 4/ 13

H.F. 666 held in open storage within one year from the date of delivery 1 to the warehouse, unless the depositor has signed a statement 2 that the depositor does not desire a warehouse receipt. A The 3 licensed warehouse operator shall issue a warehouse receipt 4 shall be issued to the depositor upon request by the depositor. 5 The warehouse operator’s tariff shall apply for to any grain 6 that is retained in open storage or placed under warehouse 7 receipt as provided in section 203C.18 . 8 2. Bulk grain deposited with a licensed warehouse operator 9 for processing, cleaning, drying, shipping for the account of 10 the depositor , or any other purpose shall be removed within 11 thirty days from the date of deposit or such grain shall be 12 determined as considered stored grain and the . The warehouse 13 operator’s tariff charges shall apply to the bulk grain as 14 provided in section 203C.28 . 15 3. Grain received on deposited and subject to a scale weight 16 ticket which that fails to have the price fixed and properly 17 documented on the records of the licensed warehouse operator 18 shall be construed to be retained in open storage. 19 4. All bulk grain whether retained in open storage and 20 deposited subject to a scale weight ticket or having been 21 placed on under warehouse receipt is covered by the grain 22 depositors and sellers indemnity fund created in as provided in 23 chapter 203D . 24 5. Any grain which has been received at any An unlicensed 25 warehouse and for which the operator shall not retain deposited 26 bulk grain, if its actual sale price has not been fixed , and 27 payment for the bulk grain has not been made within thirty days 28 from receipt of the grain its date of deposit , unless covered 29 purchased by a credit-sale contract , shall be construed to be 30 unlawful storage within the meaning of this chapter . Bulk 31 grain received at any An unlicensed warehouse for any operator 32 who retains deposited bulk gain under any other purpose 33 circumstance must either be returned return the bulk grain to 34 the depositor , or disposed of dispose of the bulk grain by 35 -5- HF 666 (3) 90 da/ns/md 5/ 13

H.F. 666 order of the depositor , within thirty days from date of actual 1 the deposit of the bulk grain. 2 Sec. 12. Section 203C.25, Code 2023, is amended to read as 3 follows: 4 203C.25 Shrinkage adjustments —— disclosures —— penalties. 5 1. A person who, in connection with the receipt of 6 corn or soybeans grain for storage, processing, or sale, 7 adjusts the scale weight of the grain to compensate for the 8 moisture content of the grain shall compute the amount of 9 the adjustment by multiplying the scale weight of the grain 10 by that factor which results in a rate of adjustment of one 11 and eighteen hundredths percent of weight per one percent of 12 moisture content. The use of person who uses any rate of 13 weight adjustment for moisture content other than the one 14 prescribed by this subsection is commits a fraudulent practice 15 as defined in section 714.8 . The person shall post on the 16 business premises in a conspicuous place notice of the rate 17 of adjustment for moisture content that is as prescribed by 18 this subsection . Failure The person who fails to make this 19 disclosure is commits a simple misdemeanor. 20 2. A person who, in connection with the receipt of grain for 21 storage, processing , or sale, adjusts the quantity of the grain 22 received to compensate for losses to be incurred during the 23 handling, processing, or storage of the grain shall post on the 24 business premises in a conspicuous place notice of the rate of 25 adjustment to be made for this shrinkage. Failure The person 26 who fails to make the required this disclosure is commits a 27 simple misdemeanor. 28 3. A person who adjusts the scale weight of corn or soybeans 29 both grain for moisture content and for handling, processing, 30 or storage losses may combine the two adjustment factors into 31 a single factor and may use this resulting factor to compute 32 the amount of weight adjustment in connection with storage, 33 processing, or sale transactions, provided that the person 34 shall post on the business premises in a conspicuous place a 35 -6- HF 666 (3) 90 da/ns/md 6/ 13

H.F. 666 notice that discloses the moisture shrinkage factor prescribed 1 by subsection 1 , the handling shrinkage factor to be imposed, 2 and the single factor that results from combining these 3 factors. Failure The person who fails to make the required 4 this disclosure is commits a simple misdemeanor. 5 Sec. 13. Section 203C.36, subsection 2, paragraph a, 6 subparagraph (3), Code 2023, is amended to read as follows: 7 (3) Uses a scale weight ticket, warehouse receipt, or 8 other document in violation of this chapter or requirements 9 established by the department under this chapter . 10 PART C 11 INDEMNITY FUND 12 Sec. 14. Section 203D.1, Code 2023, is amended by adding the 13 following new subsection: 14 NEW SUBSECTION . 14A. “Scale weight ticket” means the same 15 as defined in section 203C.1. 16 Sec. 15. Section 203D.3, subsection 3, Code 2023, is amended 17 to read as follows: 18 3. The fiscal assessment year of the fund begins July 19 September 1 and ends on June 30 August 31 . Fiscal Assessment 20 quarters of the fund begin July September 1, October December 21 1, January March 1, and April June 1. The finances of the fund 22 shall be calculated on an accrual basis in accordance with 23 generally accepted accounting principles. 24 Sec. 16. Section 203D.3A, subsection 1, paragraph b, 25 unnumbered paragraph 1, Code 2023, is amended to read as 26 follows: 27 A licensee shall pay a participation fee on four successive 28 installment dates, with each installment date occurring on the 29 last date of the fund’s fiscal assessment quarter as provided 30 in section 203D.3 . The licensee shall pay twenty-five percent 31 of the total participation fee assessed on each installment 32 date. However, nothing in this subsection prevents a licensee 33 from paying the participation fee on an accelerated basis. A 34 licensee shall pay the first installment on the last date of 35 -7- HF 666 (3) 90 da/ns/md 7/ 13

H.F. 666 the fund’s fiscal assessment quarter immediately following the 1 licensee’s anniversary date. 2 Sec. 17. Section 203D.5, subsection 1, Code 2023, is amended 3 to read as follows: 4 1. The board shall annually review the debits of and credits 5 to the grain depositors and sellers indemnity fund created 6 in section 203D.3 and shall determine whether to impose the 7 participation fee and per-bushel fee as provided in section 8 203D.3A , make adjustments to the fees effective on the previous 9 July September 1, or waive the fees as necessary to comply with 10 this section . The board shall make the determination not later 11 than May 1 of each year. The board shall impose the fees or 12 adjust the fees effective on the previous July September 1 in 13 accordance with chapter 17A . The imposition or adjustment of 14 the fees shall become effective as follows: 15 a. For the participation fee, on the following July 16 September 1. However, the licensee shall continue to pay the 17 participation fee at the rate in effect on the prior July 18 September 1, until the licensee has paid the amount owing. 19 b. For a per-bushel fee, on the following July September 1. 20 Sec. 18. Section 203D.5, subsection 4, Code 2023, is amended 21 to read as follows: 22 4. If on the last date of the fund’s fiscal assessment year 23 as provided in section 203D.3 the assets of the fund exceed 24 eight million dollars, less any encumbered balances or pending 25 or unsettled claims, all of the following apply: 26 a. The participation fee shall be waived and shall not be 27 assessable or owing for the following fiscal assessment year 28 of the fund. However, the licensee shall continue to pay any 29 owing participation fee that was in effect on the prior July 30 September 1. 31 b. The per-bushel fee shall be waived and shall not be 32 assessable or owing. 33 PART D 34 EFFECTIVE DATE 35 -8- HF 666 (3) 90 da/ns/md 8/ 13

H.F. 666 Sec. 19. EFFECTIVE DATE. This division of this Act, being 1 deemed of immediate importance, takes effect upon enactment. 2 DIVISION III 3 WEIGHTS AND MEASURES 4 PART A 5 LICENSING, INSPECTIONS, AND FEES 6 Sec. 20. Section 214.2, Code 2023, is amended to read as 7 follows: 8 214.2 License. 9 1. A person who uses or displays for use any commercial 10 weighing and measuring device , as defined in section 215.1 , 11 shall secure must be issued a license from by the department 12 for that device . The department shall issue the license after 13 inspecting the device. 14 2. a. Except as provided in paragraph “b” , a license issued 15 under subsection 1 shall expire on December 31 of each year. 16 b. A license issued under subsection 1 for a motor fuel pump 17 shall expire on June 30 of each year. 18 Sec. 21. Section 214.3, subsection 1, Code 2023, is amended 19 by striking the subsection. 20 Sec. 22. Section 214.3, subsection 2, Code 2023, is amended 21 to read as follows: 22 2. The A license inspection fee is imposed on a person 23 who uses or displays for use a commercial weighing and 24 measuring device . The license fee is due the day the device 25 is placed into service department issues the license . A 26 license inspection fee shall be charged to the person owning 27 or operating a commercial weighing and measuring device 28 inspected The amount of the license fee shall be calculated in 29 accordance with the class or section for devices as established 30 by handbook 44 of the United States national institute of 31 standards and technology. 32 Sec. 23. Section 214.11, subsection 1, Code 2023, is amended 33 to read as follows: 34 1. The department shall provide for annual biennial 35 -9- HF 666 (3) 90 da/ns/md 9/ 13

H.F. 666 inspections of all motor fuel pumps, including but not limited 1 to motor fuel blender pumps, licensed under this chapter . 2 Inspections shall be for the purpose of determining the 3 accuracy and correctness of motor fuel pumps. For that purpose 4 the department’s inspectors may enter upon the premises of any 5 a wholesale dealer or a retail dealer motor fuel site . 6 Sec. 24. Section 215.2, Code 2023, is amended to read as 7 follows: 8 215.2 Special inspection tests —— request —— fees. 9 1. The owner or servicer of a commercial weighing and 10 measuring device may request the department conduct a special 11 inspection test of the device to determine its accuracy and 12 correctness. 13 2. The fee for special tests, including but not limited to, 14 using state inspection equipment, for the calibration, testing, 15 certification, or repair conducting a special inspection test 16 of a commercial weighing and measuring device shall be paid 17 by the owner or servicer or person requesting the special 18 inspection test in accordance with the following schedule: 19 1. a. Class S, scales, seventy-five dollars per hour. 20 2. b. Class M, meters, fifty-two dollars and fifty cents 21 per hour. 22 Sec. 25. REPEAL. Section 215.12, Code 2023, is repealed. 23 PART B 24 MOTOR FUEL STANDARDS AND CLASSIFICATIONS 25 Sec. 26. Section 159A.6, subsection 1, paragraph c, Code 26 2023, is amended to read as follows: 27 c. Develop standards for decals required pursuant to 28 section 214A.16 214A.21A , which shall be designed to promote 29 the advantages of using renewable fuels. The standards may be 30 incorporated within a model decal adopted by the office. 31 Sec. 27. Section 214A.1, subsection 2, Code 2023, is amended 32 to read as follows: 33 2. “ASTM international” means a nonprofit organization, 34 previously named the American society for testing and materials 35 -10- HF 666 (3) 90 da/ns/md 10/ 13

H.F. 666 international. 1 Sec. 28. Section 214A.1, Code 2023, is amended by adding the 2 following new subsections: 3 NEW SUBSECTION . 33A. a. “Renewable diesel” means a motor 4 fuel for use in an internal combustion engine and ignited by 5 pressure without the presence of an electric spark, which 6 is produced from nonfossil renewable resources, including 7 agricultural plants, animal fats, residue, and waste generated 8 from the production, processing, and marketing of agricultural 9 products, and other renewable resources. 10 b. “Renewable diesel” must meet the standards provided in 11 section 214A.2. 12 c. “Renewable diesel” does not include any of the following: 13 (1) Biodiesel. 14 (2) A fuel that has been coprocessed. 15 NEW SUBSECTION . 33B. “Renewable diesel blended fuel” means 16 a blend of renewable diesel with petroleum-based diesel fuel, 17 biodiesel, or a combination of petroleum-based diesel fuel and 18 biodiesel, which meets the standards, including separately 19 the standard for its renewable diesel component, provided in 20 section 214A.2. 21 Sec. 29. Section 214A.2, subsection 4, Code 2023, is amended 22 by adding the following new paragraph: 23 NEW PARAGRAPH . c. (1) If the motor fuel is advertised 24 for sale or sold as renewable diesel or renewable diesel 25 blended fuel, the motor fuel must meet departmental standards 26 based in part or in whole on specifications adopted by ASTM 27 international for renewable diesel or renewable diesel blended 28 motor fuel, to every extent applicable, as determined by the 29 department subject to subparagraph (2). 30 (2) Renewable diesel must at least meet departmental 31 standards based in whole or in part on ASTM international 32 specification D975, or a successor ASTM international 33 specification, established by rule. The specification shall 34 apply to renewable diesel before it leaves its place of 35 -11- HF 666 (3) 90 da/ns/md 11/ 13

H.F. 666 manufacture. 1 Sec. 30. Section 214A.2, subsection 5, Code 2023, is amended 2 by adding the following new paragraph: 3 NEW PARAGRAPH . d. (1) Renewable diesel shall be classified 4 RD-100. 5 (2) Renewable diesel blended fuel shall be classified RD-xx 6 where “xx” is the volume percent of renewable diesel. 7 Sec. 31. Section 214A.2B, Code 2023, is amended to read as 8 follows: 9 214A.2B Laboratory for motor fuel and biofuels fuels, 10 biofuels, and renewable fuels . 11 A laboratory for motor fuel and biofuels is established at a 12 community college which is engaged in biofuels testing on July 13 1, 2007, and which testing includes but is not limited to The 14 Iowa central fuel testing laboratory at Iowa central community 15 college shall test motor fuels, biofuels, and renewable fuels, 16 including but not limited to B-20 biodiesel fuel testing for 17 use by motor trucks and the ability of biofuels to meet ASTM 18 international standards . The laboratory shall conduct the 19 testing of motor fuel fuels sold in this state and biofuel 20 which is biofuels blended in with motor fuel fuels in this 21 state to ensure that the motor fuel or fuels, biofuels , and 22 renewable fuels meet the requirements departmental standards 23 in section 214A.2 . 24 PART C 25 CODE EDITOR DIRECTIVE 26 Sec. 32. CODE EDITOR DIRECTIVE. 27 1. The Code editor is directed to make the following 28 transfer: 29 Section 214A.16 to section 214A.21A. 30 2. The Code editor shall correct internal references in the 31 Code and in any enacted legislation as necessary due to the 32 enactment of this section. 33 DIVISION IV 34 WATER QUALITY 35 -12- HF 666 (3) 90 da/ns/md 12/ 13

H.F. 666 Sec. 33. Section 466B.43, subsection 6, Code 2023, is 1 amended to read as follows: 2 6. By October 1, 2019, and each October 1 thereafter of 3 each year , the division shall submit a report to the governor 4 and the general assembly itemizing expenditures, by hydrologic 5 unit code 8 watershed, under the programs , if any, during the 6 previous fiscal year , if any . 7 Sec. 34. Section 466B.44, subsection 5, Code 2023, is 8 amended to read as follows: 9 5. Notwithstanding any other provision in this section 10 to the contrary, beginning on July 1, 2018, the division 11 may use any amount available to support the water quality 12 urban infrastructure program to instead extend do any of the 13 following: 14 a. Extend and support the three-year data collection of 15 in-field agricultural practices project as enacted in 2015 Iowa 16 Acts, ch. 132, §18 . 17 b. Support water quality agriculture infrastructure programs 18 created in section 466B.43, to the extent that moneys are not 19 obligated or encumbered during a fiscal year to adequately 20 support all urban infrastructure program projects that meet the 21 division’s requirements. 22 Sec. 35. Section 466B.44, subsection 7, Code 2023, is 23 amended to read as follows: 24 7. By October 1, 2019, and by October 1 of each year 25 thereafter , the division shall submit a report to the governor 26 and the general assembly itemizing expenditures under the 27 program, if any, during the previous fiscal year. 28 -13- HF 666 (3) 90 da/ns/md 13/ 13