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House Study Bill 560 - IntroducedA Bill ForAn Act 1relating to agriculture, by providing for the
2administration of programs and regulations, and making
3appropriations.
4BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1DIVISION I
2IOWA-FOALED HORSES
3 Section 1. Section 99D.22, subsection 2, paragraph b,
4subparagraph (3), Code 2024, is amended to read as follows:
5(3)(a) Continuous For a thoroughbred foal, continuous
6 residency from December 31 until the foal is inspected if the
7mare was bred by other than an Iowa registered stallion and is
8not bred back to an Iowa registered stallion.
9(b) For a standardbred foal or quarter horse foal,
10continuous residency from January 31 until the foal is
11inspected if the mare was bred by other than an Iowa registered
12stallion and is not bred back to an Iowa registered stallion.
13DIVISION II
14AGRICULTURAL MARKETING
15Part A
16CHOOSE IOWA PROmotional PROGRAM
17 Sec. 2. Section 159.26, Code 2024, is amended by striking
18the section and inserting in lieu thereof the following:
19159.26 Definitions.
20As used in this part, unless the context otherwise requires:
211. “Agricultural commodity” means an animal or plant, or raw
22material originating from an animal or plant.
232. “Component” means an agricultural commodity that is
24combined to form a product during processing.
253. “Farm” means land and associated structures used to
26produce an agricultural commodity.
274. “Food item” means an agricultural commodity, or an item
28processed from an agricultural commodity, that is fit for human
29consumption.
305. “Fund” means the choose Iowa program fund established in
31section 159.31.
326. “Horticulture item” means any of the following:
33a. A nursery, floral, or greenhouse plant.
34b. A product processed from a nursery, floral, or greenhouse
35plant, including a seed, rooting, cutting, tissue culture,
-1-1seedling, or other propagation material.
27. “Natural fiber item” means fiber originating from
3an agricultural commodity for use in processing, including
4manufacturing into a textile, apparel, or other similar
5product.
68. “Process” means to prepare a product that includes an
7agricultural commodity alone or as a component.
89. a. “Product” means an agricultural commodity that in its
9raw or processed state is moveable at the time of its retail
10sale.
11b. “Product” includes but is not limited to a food item,
12horticulture item, or natural fiber item.
1310. “Program” means the choose Iowa promotional program
14established in section 159.28.
15 Sec. 3. Section 159.28, Code 2024, is amended to read as
16follows:
17159.28 Choose Iowa promotional program.
181. The department shall establish and administer a choose
19Iowa promotional program to advertise for retail sale on a
20retail basis a food item that originates as an agricultural
21commodity produced on an Iowa farm, and an Iowa product that
22may include any of the following:
23a. An agricultural commodity produced on an Iowa farm,
24except that it may be prepared for sale by washing or packaging
25in this state.
26b. A product, if it is An agricultural commodity processed
27in this state and any of its ingredients, if its components
28 originate as an agricultural commodity produced on an Iowa
29farm.
302. a. The department may adopt rules further defining an
31Iowa farm, Iowa agricultural commodity, and Iowa product; and
32describing how an Iowa agricultural commodity originates on an
33Iowa farm.
34b. The department may adopt rules providing for the
35acceptable use of ingredients originating a component that
-2-1originates from an agricultural commodities commodity not
2produced on an Iowa farms farm. In adopting the rules, the
3department may consider whether the ingredient component is
4an incidental additive or other component that the department
5determines is or insignificant part of an Iowa product.
6 Sec. 4. Section 159.29, subsections 1 and 5, Code 2024, are
7amended to read as follows:
81. As part of the choose Iowa promotional program, the
9department may establish a choose Iowa logo to identify a food
10item originating as an agricultural commodity produced on an
11Iowa farm an Iowa product.
125. The use of a choose Iowa logo does not do any of the
13following:
14a. Provide an express or implied guarantee or warranty
15concerning the safety, fitness, merchantability, or use of a
16food item product.
17b. Supersede, revise, or replace a state or federal labeling
18requirement, including but not limited to a provision in the
19federal Fair Packaging and Labeling Act, 15 U.S.C.§1451 et
20seq.
21c. Indicate the grade, specification, standard, or value of
22any food item agricultural commodity, component, or product.
23 Sec. 5. Section 159.31, subsection 1, Code 2024, is amended
24to read as follows:
251. A choose Iowa promotional fund is established in
26the state treasury under the management and control of the
27department.
28PART B
29DAIRY INNOVATION
30 Sec. 6. Section 159.31A, subsection 3, paragraphs a and c,
31Code 2024, are amended to read as follows:
32a. Expand or refurbish existing milk plants or establish a
33new milk plant, operating pursuant to a permit issued pursuant
34to section 192.111 or 194.3A.
35c. Rent buildings, refrigeration facilities, or freezer
-3-1facilities, or acquire equipment, if necessary to expand dairy
2processing capacity, including mobile dairy or refrigeration
3units used exclusively for dairy processing.
4 Sec. 7. Section 159.31A, subsection 7, Code 2024, is amended
5to read as follows:
67. A business that is awarded financial assistance under
7this section may apply for financial assistance under other
8programs administered by the authority department.
9PART C
10VALUE-ADDED AGRICULTURAL GRANT FUND AND PROGRAM
11 Sec. 8. NEW SECTION. 159.31C Value-added agricultural grant
12program fund.
131. A value-added agricultural grant program fund is
14established in the state treasury under the management and
15control of the department.
162. The fund shall include moneys appropriated by the general
17assembly and other moneys available to and obtained or accepted
18by the department, including moneys from public or private
19sources.
203. Moneys in the fund are appropriated to the department for
21the purpose of supporting the value-added agricultural grant
22program established in section 159.31D.
234. a. Notwithstanding section 12C.7, interest or earnings
24on moneys in the fund shall be credited to the fund.
25b. Notwithstanding section 8.33, moneys in the fund that
26remain unencumbered or unobligated at the end of a fiscal year
27shall not revert.
28 Sec. 9. NEW SECTION. 159.31D Value-added agricultural grant
29program.
30There is established a value-added agricultural grant
31program to identify, evaluate, and support projects and
32services that add value to agricultural commodities produced
33on Iowa farms, including by supporting new technologies and
34marketing strategies. The department shall adopt rules as
35necessary to administer the program.
-4-1DIVISION III
2COMMERCIAL ESTABLISHMENTS
3 Sec. 10. Section 162.2, subsection 8, Code 2024, is amended
4to read as follows:
58. “Commercial breeder” means a person, engaged in the
6business of breeding dogs or cats, who sells, exchanges, or
7leases dogs or cats in return for consideration, or who offers
8to do so, whether or not the animals are raised, trained,
9groomed, or boarded by the person. A person who owns or
10harbors three or fewer breeding males or females is not a
11commercial breeder. However, a person who breeds any number
12of breeding male or female greyhounds for the purposes of
13using them for pari-mutuel wagering at a racetrack as provided
14in chapter 99D shall be considered a commercial breeder
15irrespective of whether the person sells, leases, or exchanges
16the greyhounds for consideration or offers to do so.
17 Sec. 11. Section 162.2B, subsection 1, paragraph b, Code
182024, is amended to read as follows:
19b. For the issuance or renewal of a state license or permit,
20one hundred seventy-five dollars. However, a commercial
21breeder who owns, keeps, breeds, or transports a greyhound dog
22for pari-mutuel wagering at a racetrack as provided in chapter
2399D shall pay a different fee for the issuance or renewal of a
24state license as provided in rules adopted by the department.
25 Sec. 12. Section 162.10A, subsection 2, Code 2024, is
26amended to read as follows:
272. a. Except as provided in paragraph “b” or “c”, a
28commercial establishment shall comply with rules that the
29department adopts to implement subsection 1. A commercial
30establishment shall be regulated under this paragraph “a”
31unless the person is a state licensee as provided in paragraph
32“b” or a permittee as provided in paragraph “c” “b”.
33b. A state licensee who is a commercial breeder owning,
34breeding, transporting, or keeping a greyhound dog for
35pari-mutuel wagering at a racetrack as provided in chapter 99D
-5-1 may be required to comply with different rules adopted by the
2department.
3c. b. A permittee is not required to comply with rules
4that the department adopts to implement a standard of care as
5provided in subsection 1 for state licensees and registrants.
6The department may adopt rules regulating a standard of care
7for a permittee, so long as the rules are not more restrictive
8than required for a permittee under the Animal Welfare Act.
9However, the department may adopt prescriptive rules relating
10to the standard of care. Regardless of whether the department
11adopts such rules, a permittee meets the standard of care
12required in subsection 1 if it voluntarily complies with rules
13applicable to state licensees or registrants. A finding by
14the United States department of agriculture that a permittee
15complies with the Animal Welfare Act is not conclusive when
16determining that the permittee provides a standard of care
17required in subsection 1.
18 Sec. 13. Section 717B.3, subsection 2, paragraph a,
19subparagraph (2), subparagraph divisions (a) and (b), Code
202024, are amended to read as follows:
21(a) A state licensee or registrant operating pursuant to
22section 162.10A, subsection 2, paragraph “a” or “b”.
23(b) A permittee operating pursuant to section 162.10A,
24subsection 2, paragraph “c” “b”.
25DIVISION IV
26GRADE “A” MILK
27 Sec. 14. Section 192.101A, Code 2024, is amended by adding
28the following new subsections:
29 NEW SUBSECTION. 1A. “Department” means the department of
30agriculture and land stewardship.
31 NEW SUBSECTION. 5. “Secretary” means the secretary of
32agriculture.
33 Sec. 15. Section 192.109, Code 2024, is amended to read as
34follows:
35192.109 Certification of grade “A” label.
-6- 1The department of agriculture and land stewardship shall
2annually biennially conduct a survey and based on that survey
3 certify all milk labeled grade “A” pasteurized and grade “A”
4raw milk for pasteurization, and, in. In the event that a
5survey shows the requirements for production, processing, and
6distribution for such grade are not being complied with, the
7 that fact thereof shall be certified by the department to the
8secretary of agriculture who shall proceed with the provisions
9of section 192.107 for suspending the permit of the violator or
10who, if the secretary did not issue such permit, shall withdraw
11the grade “A” declared on the label.
12 Sec. 16. Section 192.111, subsection 1, paragraph a,
13subparagraph (5), Code 2024, is amended to read as follows:
14(5) A milk grader which must obtain a milk grader permit and
15pay a license permit fee not greater than twenty dollars.
16 Sec. 17. Section 192.116, Code 2024, is amended to read as
17follows:
18192.116 Bacteriologists.
19The department of agriculture and land stewardship may
20employ dairy specialists or bacteriologists who shall devote
21their full time to the improvement of sanitation in the
22production, processing, and marketing of dairy products.
23Said The dairy specialists and bacteriologists shall have
24qualifications as to education and experience and such other
25requirements as the secretary may require.
26 Sec. 18. Section 192.118, subsection 1, Code 2024, is
27amended to read as follows:
281. To ensure uniformity in the tests and reporting, an
29employee certified by the United States public health service
30of the bacteriological laboratory of the department shall
31annually certify, in accordance with rules adopted by the
32department incorporating or incorporating by reference the
33federal publication entitled “Evaluation of Milk Laboratories”,
34all laboratories doing work in the sanitary quality of
35milk and dairy products for public report. The approval by
-7-1the department shall be based on the evaluation of these
2laboratories as to personnel training, laboratory methods
3used, and reporting. The results on tests made by approved
4laboratories shall be reported to the department on request,
5on forms prescribed by the secretary of agriculture, and such
6reports may be used by the department.
7EXPLANATION
8The inclusion of this explanation does not constitute agreement with
9the explanation’s substance by the members of the general assembly.
10GENERAL. This bill provides for the administration of
11a number of programs and regulations by the department of
12agriculture and land stewardship (DALS). Specifically,
13the bill addresses the promotion of the native horse racing
14industry by providing for the qualification of Iowa-foaled
15horse breeds; agricultural marketing, by revising a number of
16existing programs such as the choose Iowa promotional program
17and choose Iowa fund, the dairy innovation program and fund,
18and the value-added agricultural grant program and fund; the
19regulation of commercial establishments that keep certain
20nonagricultural animals for commercial purposes, by eliminating
21special requirements related to greyhound racing; and the
22regulation of permittees authorized to engage in the handling
23of grade “A” milk and related dairy products.
24IOWA-FOALED HORSES. DALS regulates the status and care
25of race horses involved in pari-mutual wagering conducted
26by persons licensed by the racing and gaming commission to
27operate racetracks and manage associated purses. There are
28three breeds of horses involved in such racing, including
29thoroughbred horses, quarter horses, and standardbred horses.
30For at least one race of each racing day, either a race must
31be limited to Iowa-foaled horses or alternatively Iowa-foaled
32horses must be given a weight advantage (Code section 99D.22).
33At least 20 percent of all net purse moneys distributed to
34each breed must be awarded in the form of Iowa breeder awards
35or purse supplements to Iowa breeders. One criteria used to
-8-1determine a foal’s status as Iowa bred occurs in cases in which
2the foal’s brood mare was bred by a stallion not recognized by
3DALS as an Iowa registered stallion and was not bred back to an
4Iowa registered stallion. In that case, the brood mare must
5have continuous Iowa residency from December 31 until the foal
6is inspected. The bill provides that for quarter horses and
7standardbred horses, that beginning date is moved to January
831.
9AGRICULTURAL MARKETING — CHOOSE IOWA PROMOTIONAL PROGRAM
10AND CHOOSE IOWA PROMOTIONAL FUND. In 2022, the general
11assembly established the choose Iowa promotional program
12(choose Iowa program) and choose Iowa fund administered by
13DALS (2022 Iowa Acts, chapter 1152). The stated purpose of
14the choose Iowa program and fund is to provide consumers a
15choice to purchase a food item originating as an agricultural
16commodity (commodity) produced on an Iowa farm or a food
17item processed in Iowa using the commodity as an ingredient
18(Code sections 159.26 through 159.31). As part of the choose
19Iowa program, DALS may establish a choose Iowa logo (logo)
20and register the logo for legal protection with the state or
21the United States (e.g., by trademark or copyright). DALS
22may also enter into a licensing agreement with a person who
23applies to use the logo when selling a food item on a retail
24basis. A choose Iowa fund was established to finance the
25program. The fund includes fees paid by licensees and any
26moneys appropriated by the general assembly. The bill uses
27the term “product” to describe both raw and processed items
28(i.e., moveable goods) that may be sold at retail using the
29logo. It expands the program to include horticulture items (a
30nursery, floral, or greenhouse plant) and natural fiber items
31(e.g., wool). In all cases, the product must be a commodity
32produced on an Iowa farm, a commodity produced on an Iowa farm
33and processed in this state, or a commodity produced on an Iowa
34farm and used as a component in a product processed in this
35state. The bill changes the fund’s name to the choose Iowa
-9-1promotional fund.
2AGRICULTURAL MARKETING — DAIRY FUND’S INNOVATION FUND
3AND PROGRAM. In 2023, the general assembly created a dairy
4innovation fund (dairy fund) and program (dairy program)
5(2023 Iowa Acts, chapter 101). The purpose of the dairy fund
6and dairy program is to expand dairy processing capacity in
7the state (Code section 159.31A). The dairy fund is used
8to support financing eligible businesses participating in
9the program in the form of grants, low-interest loans, or
10forgivable loans. DALS is specifically required to finance
11the expansion or refurbishing of existing milk plants or the
12construction of new milk plants that process and package raw
13milk into various milk and dairy products. Code chapter
14192 regulates the production, processing, labeling, and
15distribution (handling) of grade “A” milk and grade “A” milk
16products according to sanitary requirements (Code section
17192.102). Under the program, in order to receive financing,
18a milk plant must be operated under a permit issued by DALS
19pursuant to Code section 192.111. The bill provides that the
20milk plant may also operate under a permit issued pursuant to
21Code section 194.3A. Code chapter 194 governs the production,
22delivery, and processing of the less common grade “B” milk
23allowed for use in manufacturing dairy products. The bill also
24provides that the financing may be used for the acquisition
25and not just renting of dairy processing equipment. Finally,
26the bill substitutes the term “department” for “authority”
27in a provision that allows an eligible business receiving
28financial assistance under the program to receive assistance
29under another program.
30AGRICULTURAL MARKETING — VALUE-ADDED AGRICULTURAL GRANT
31FUND AND PROGRAM. The bill establishes the value-added
32agricultural grant program fund (value-added fund) and
33value-added agricultural grant program (value-added program)
34(new Code sections 159.31C and 159.31D). The value-added
35fund is administered by DALS and includes moneys appropriated
-10-1by the general assembly, and other moneys available to DALS,
2to support the value-added program. The purpose of the
3value-added program is to support projects and services that
4add value to agricultural commodities produced on Iowa farms
5(e.g., by processing). The program has been enacted and
6supported in recent DALS general appropriations Acts but not
7codified (see 2021 Iowa Acts, chapter 143, section 12; 2022
8Iowa Acts, chapter 1147, section 12; and 2023 Iowa Acts,
9chapter 109, section 4).
10REGULATION OF COMMERCIAL ESTABLISHMENTS. DALS regulates
11commercial establishments that keep certain nonagricultural
12animals for commercial purposes on a nonprofit or profit
13basis, including an animal shelter, pound, or research
14facility issued a certificate of registration (Code sections
15162.3, 162.4, and 162.4A); a pet shop, boarding kennel, or
16commercial kennel issued a state license (Code sections 162.5,
17162.5A, and 162.6); or a dealer, commercial breeder, or public
18auction who may elect to be either issued a state license or
19a permit. A permit is issued if the person is licensed under
20the federal Animal Welfare Act (7 U.S.C. ch.54) by the United
21States department of agriculture (Code sections 162.7, 162.8,
22and 162.9A). Code chapter 162 provides special regulations
23applicable to a greyhound dog if used for pari-mutuel wagering
24at a licensed racetrack (racing greyhound) (Code chapter 99D).
25The bill eliminates those special provisions. Currently, a
26person is regulated as a commercial breeder and is subject to
27license or permit requirements if the person breeds dogs or
28cats in exchange for payment with an exception that applies
29to a person who keeps three or fewer breeding greyhounds.
30The exception does not apply to a person who breeds racing
31greyhounds (Code section 162.2). A person applying for a
32state license or permit is required to pay DALS $175 with
33an exception for a person who keeps racing greyhounds (Code
34section 162.2B). A person who keeps greyhounds must be issued
35a state license and is subject to a fee established by DALS
-11-1rule which is currently $40 (21 IAC 67.17). A commercial
2establishment is required to comply with standard of care
3requirements including providing a kept animal with adequate
4feed, adequate water, housing facilities, sanitary control,
5grooming practices, and veterinary care as required by DALS
6rule (Code section 162.10A). A state licensee who is a
7commercial breeder keeping a racing greyhound may be required
8to comply with different rules adopted by the department.
9GRADE “A” MILK REGULATION. Iowa has adopted by reference
10the model “Grade ‘A’ Pasteurized Milk Ordinance” as part of
11its “Iowa Grade ‘A’ Milk Inspection Law” (Code chapter 192).
12The bill makes several editorial changes to improve the Code’s
13readability, including by defining the terms “department”
14as the department of agriculture and land stewardship and
15“secretary” as the secretary of agriculture, and using those
16terms consistently throughout the Code chapter. In order to
17handle raw milk for pasteurization and processing, a person
18must be issued a permit by DALS (Code section 192.107; 21
19IAC 68.2). Each year, DALS is required to conduct a survey
20of permittees to verify that the milk they handle meets
21requirements to be labeled grade “A” for pasteurization. The
22bill provides that the survey is to be conducted every other
23year. DALS may suspend or revoke a permit for a person who does
24not comply with the sanitary requirements.
-12-da/ns
2administration of programs and regulations, and making
3appropriations.
4BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1DIVISION I
2IOWA-FOALED HORSES
3 Section 1. Section 99D.22, subsection 2, paragraph b,
4subparagraph (3), Code 2024, is amended to read as follows:
5(3)(a) Continuous For a thoroughbred foal, continuous
6 residency from December 31 until the foal is inspected if the
7mare was bred by other than an Iowa registered stallion and is
8not bred back to an Iowa registered stallion.
9(b) For a standardbred foal or quarter horse foal,
10continuous residency from January 31 until the foal is
11inspected if the mare was bred by other than an Iowa registered
12stallion and is not bred back to an Iowa registered stallion.
13DIVISION II
14AGRICULTURAL MARKETING
15Part A
16CHOOSE IOWA PROmotional PROGRAM
17 Sec. 2. Section 159.26, Code 2024, is amended by striking
18the section and inserting in lieu thereof the following:
19159.26 Definitions.
20As used in this part, unless the context otherwise requires:
211. “Agricultural commodity” means an animal or plant, or raw
22material originating from an animal or plant.
232. “Component” means an agricultural commodity that is
24combined to form a product during processing.
253. “Farm” means land and associated structures used to
26produce an agricultural commodity.
274. “Food item” means an agricultural commodity, or an item
28processed from an agricultural commodity, that is fit for human
29consumption.
305. “Fund” means the choose Iowa program fund established in
31section 159.31.
326. “Horticulture item” means any of the following:
33a. A nursery, floral, or greenhouse plant.
34b. A product processed from a nursery, floral, or greenhouse
35plant, including a seed, rooting, cutting, tissue culture,
-1-1seedling, or other propagation material.
27. “Natural fiber item” means fiber originating from
3an agricultural commodity for use in processing, including
4manufacturing into a textile, apparel, or other similar
5product.
68. “Process” means to prepare a product that includes an
7agricultural commodity alone or as a component.
89. a. “Product” means an agricultural commodity that in its
9raw or processed state is moveable at the time of its retail
10sale.
11b. “Product” includes but is not limited to a food item,
12horticulture item, or natural fiber item.
1310. “Program” means the choose Iowa promotional program
14established in section 159.28.
15 Sec. 3. Section 159.28, Code 2024, is amended to read as
16follows:
17159.28 Choose Iowa promotional program.
181. The department shall establish and administer a choose
19Iowa promotional program to advertise for retail sale on a
20retail basis a food item that originates as an agricultural
21commodity produced on an Iowa farm, and an Iowa product that
22may include any of the following:
23a. An agricultural commodity produced on an Iowa farm,
24except that it may be prepared for sale by washing or packaging
25in this state.
26b. A product, if it is An agricultural commodity processed
27in this state and any of its ingredients, if its components
28 originate as an agricultural commodity produced on an Iowa
29farm.
302. a. The department may adopt rules further defining an
31Iowa farm, Iowa agricultural commodity, and Iowa product; and
32describing how an Iowa agricultural commodity originates on an
33Iowa farm.
34b. The department may adopt rules providing for the
35acceptable use of ingredients originating a component that
-2-1originates from an agricultural commodities commodity not
2produced on an Iowa farms farm. In adopting the rules, the
3department may consider whether the ingredient component is
4an incidental additive or other component that the department
5determines is or insignificant part of an Iowa product.
6 Sec. 4. Section 159.29, subsections 1 and 5, Code 2024, are
7amended to read as follows:
81. As part of the choose Iowa promotional program, the
9department may establish a choose Iowa logo to identify a food
10item originating as an agricultural commodity produced on an
11Iowa farm an Iowa product.
125. The use of a choose Iowa logo does not do any of the
13following:
14a. Provide an express or implied guarantee or warranty
15concerning the safety, fitness, merchantability, or use of a
16food item product.
17b. Supersede, revise, or replace a state or federal labeling
18requirement, including but not limited to a provision in the
19federal Fair Packaging and Labeling Act, 15 U.S.C.§1451 et
20seq.
21c. Indicate the grade, specification, standard, or value of
22any food item agricultural commodity, component, or product.
23 Sec. 5. Section 159.31, subsection 1, Code 2024, is amended
24to read as follows:
251. A choose Iowa promotional fund is established in
26the state treasury under the management and control of the
27department.
28PART B
29DAIRY INNOVATION
30 Sec. 6. Section 159.31A, subsection 3, paragraphs a and c,
31Code 2024, are amended to read as follows:
32a. Expand or refurbish existing milk plants or establish a
33new milk plant, operating pursuant to a permit issued pursuant
34to section 192.111 or 194.3A.
35c. Rent buildings, refrigeration facilities, or freezer
-3-1facilities, or acquire equipment, if necessary to expand dairy
2processing capacity, including mobile dairy or refrigeration
3units used exclusively for dairy processing.
4 Sec. 7. Section 159.31A, subsection 7, Code 2024, is amended
5to read as follows:
67. A business that is awarded financial assistance under
7this section may apply for financial assistance under other
8programs administered by the authority department.
9PART C
10VALUE-ADDED AGRICULTURAL GRANT FUND AND PROGRAM
11 Sec. 8. NEW SECTION. 159.31C Value-added agricultural grant
12program fund.
131. A value-added agricultural grant program fund is
14established in the state treasury under the management and
15control of the department.
162. The fund shall include moneys appropriated by the general
17assembly and other moneys available to and obtained or accepted
18by the department, including moneys from public or private
19sources.
203. Moneys in the fund are appropriated to the department for
21the purpose of supporting the value-added agricultural grant
22program established in section 159.31D.
234. a. Notwithstanding section 12C.7, interest or earnings
24on moneys in the fund shall be credited to the fund.
25b. Notwithstanding section 8.33, moneys in the fund that
26remain unencumbered or unobligated at the end of a fiscal year
27shall not revert.
28 Sec. 9. NEW SECTION. 159.31D Value-added agricultural grant
29program.
30There is established a value-added agricultural grant
31program to identify, evaluate, and support projects and
32services that add value to agricultural commodities produced
33on Iowa farms, including by supporting new technologies and
34marketing strategies. The department shall adopt rules as
35necessary to administer the program.
-4-1DIVISION III
2COMMERCIAL ESTABLISHMENTS
3 Sec. 10. Section 162.2, subsection 8, Code 2024, is amended
4to read as follows:
58. “Commercial breeder” means a person, engaged in the
6business of breeding dogs or cats, who sells, exchanges, or
7leases dogs or cats in return for consideration, or who offers
8to do so, whether or not the animals are raised, trained,
9groomed, or boarded by the person. A person who owns or
10harbors three or fewer breeding males or females is not a
11commercial breeder. However, a person who breeds any number
12of breeding male or female greyhounds for the purposes of
13using them for pari-mutuel wagering at a racetrack as provided
14in chapter 99D shall be considered a commercial breeder
15irrespective of whether the person sells, leases, or exchanges
16the greyhounds for consideration or offers to do so.
17 Sec. 11. Section 162.2B, subsection 1, paragraph b, Code
182024, is amended to read as follows:
19b. For the issuance or renewal of a state license or permit,
20one hundred seventy-five dollars. However, a commercial
21breeder who owns, keeps, breeds, or transports a greyhound dog
22for pari-mutuel wagering at a racetrack as provided in chapter
2399D shall pay a different fee for the issuance or renewal of a
24state license as provided in rules adopted by the department.
25 Sec. 12. Section 162.10A, subsection 2, Code 2024, is
26amended to read as follows:
272. a. Except as provided in paragraph “b” or “c”, a
28commercial establishment shall comply with rules that the
29department adopts to implement subsection 1. A commercial
30establishment shall be regulated under this paragraph “a”
31unless the person is a state licensee as provided in paragraph
32“b” or a permittee as provided in paragraph “c” “b”.
33b. A state licensee who is a commercial breeder owning,
34breeding, transporting, or keeping a greyhound dog for
35pari-mutuel wagering at a racetrack as provided in chapter 99D
-5-1 may be required to comply with different rules adopted by the
2department.
3c. b. A permittee is not required to comply with rules
4that the department adopts to implement a standard of care as
5provided in subsection 1 for state licensees and registrants.
6The department may adopt rules regulating a standard of care
7for a permittee, so long as the rules are not more restrictive
8than required for a permittee under the Animal Welfare Act.
9However, the department may adopt prescriptive rules relating
10to the standard of care. Regardless of whether the department
11adopts such rules, a permittee meets the standard of care
12required in subsection 1 if it voluntarily complies with rules
13applicable to state licensees or registrants. A finding by
14the United States department of agriculture that a permittee
15complies with the Animal Welfare Act is not conclusive when
16determining that the permittee provides a standard of care
17required in subsection 1.
18 Sec. 13. Section 717B.3, subsection 2, paragraph a,
19subparagraph (2), subparagraph divisions (a) and (b), Code
202024, are amended to read as follows:
21(a) A state licensee or registrant operating pursuant to
22section 162.10A, subsection 2, paragraph “a” or “b”.
23(b) A permittee operating pursuant to section 162.10A,
24subsection 2, paragraph “c” “b”.
25DIVISION IV
26GRADE “A” MILK
27 Sec. 14. Section 192.101A, Code 2024, is amended by adding
28the following new subsections:
29 NEW SUBSECTION. 1A. “Department” means the department of
30agriculture and land stewardship.
31 NEW SUBSECTION. 5. “Secretary” means the secretary of
32agriculture.
33 Sec. 15. Section 192.109, Code 2024, is amended to read as
34follows:
35192.109 Certification of grade “A” label.
-6- 1The department of agriculture and land stewardship shall
2annually biennially conduct a survey and based on that survey
3 certify all milk labeled grade “A” pasteurized and grade “A”
4raw milk for pasteurization, and, in. In the event that a
5survey shows the requirements for production, processing, and
6distribution for such grade are not being complied with, the
7 that fact thereof shall be certified by the department to the
8secretary of agriculture who shall proceed with the provisions
9of section 192.107 for suspending the permit of the violator or
10who, if the secretary did not issue such permit, shall withdraw
11the grade “A” declared on the label.
12 Sec. 16. Section 192.111, subsection 1, paragraph a,
13subparagraph (5), Code 2024, is amended to read as follows:
14(5) A milk grader which must obtain a milk grader permit and
15pay a license permit fee not greater than twenty dollars.
16 Sec. 17. Section 192.116, Code 2024, is amended to read as
17follows:
18192.116 Bacteriologists.
19The department of agriculture and land stewardship may
20employ dairy specialists or bacteriologists who shall devote
21their full time to the improvement of sanitation in the
22production, processing, and marketing of dairy products.
23Said The dairy specialists and bacteriologists shall have
24qualifications as to education and experience and such other
25requirements as the secretary may require.
26 Sec. 18. Section 192.118, subsection 1, Code 2024, is
27amended to read as follows:
281. To ensure uniformity in the tests and reporting, an
29employee certified by the United States public health service
30of the bacteriological laboratory of the department shall
31annually certify, in accordance with rules adopted by the
32department incorporating or incorporating by reference the
33federal publication entitled “Evaluation of Milk Laboratories”,
34all laboratories doing work in the sanitary quality of
35milk and dairy products for public report. The approval by
-7-1the department shall be based on the evaluation of these
2laboratories as to personnel training, laboratory methods
3used, and reporting. The results on tests made by approved
4laboratories shall be reported to the department on request,
5on forms prescribed by the secretary of agriculture, and such
6reports may be used by the department.
7EXPLANATION
8The inclusion of this explanation does not constitute agreement with
9the explanation’s substance by the members of the general assembly.
10GENERAL. This bill provides for the administration of
11a number of programs and regulations by the department of
12agriculture and land stewardship (DALS). Specifically,
13the bill addresses the promotion of the native horse racing
14industry by providing for the qualification of Iowa-foaled
15horse breeds; agricultural marketing, by revising a number of
16existing programs such as the choose Iowa promotional program
17and choose Iowa fund, the dairy innovation program and fund,
18and the value-added agricultural grant program and fund; the
19regulation of commercial establishments that keep certain
20nonagricultural animals for commercial purposes, by eliminating
21special requirements related to greyhound racing; and the
22regulation of permittees authorized to engage in the handling
23of grade “A” milk and related dairy products.
24IOWA-FOALED HORSES. DALS regulates the status and care
25of race horses involved in pari-mutual wagering conducted
26by persons licensed by the racing and gaming commission to
27operate racetracks and manage associated purses. There are
28three breeds of horses involved in such racing, including
29thoroughbred horses, quarter horses, and standardbred horses.
30For at least one race of each racing day, either a race must
31be limited to Iowa-foaled horses or alternatively Iowa-foaled
32horses must be given a weight advantage (Code section 99D.22).
33At least 20 percent of all net purse moneys distributed to
34each breed must be awarded in the form of Iowa breeder awards
35or purse supplements to Iowa breeders. One criteria used to
-8-1determine a foal’s status as Iowa bred occurs in cases in which
2the foal’s brood mare was bred by a stallion not recognized by
3DALS as an Iowa registered stallion and was not bred back to an
4Iowa registered stallion. In that case, the brood mare must
5have continuous Iowa residency from December 31 until the foal
6is inspected. The bill provides that for quarter horses and
7standardbred horses, that beginning date is moved to January
831.
9AGRICULTURAL MARKETING — CHOOSE IOWA PROMOTIONAL PROGRAM
10AND CHOOSE IOWA PROMOTIONAL FUND. In 2022, the general
11assembly established the choose Iowa promotional program
12(choose Iowa program) and choose Iowa fund administered by
13DALS (2022 Iowa Acts, chapter 1152). The stated purpose of
14the choose Iowa program and fund is to provide consumers a
15choice to purchase a food item originating as an agricultural
16commodity (commodity) produced on an Iowa farm or a food
17item processed in Iowa using the commodity as an ingredient
18(Code sections 159.26 through 159.31). As part of the choose
19Iowa program, DALS may establish a choose Iowa logo (logo)
20and register the logo for legal protection with the state or
21the United States (e.g., by trademark or copyright). DALS
22may also enter into a licensing agreement with a person who
23applies to use the logo when selling a food item on a retail
24basis. A choose Iowa fund was established to finance the
25program. The fund includes fees paid by licensees and any
26moneys appropriated by the general assembly. The bill uses
27the term “product” to describe both raw and processed items
28(i.e., moveable goods) that may be sold at retail using the
29logo. It expands the program to include horticulture items (a
30nursery, floral, or greenhouse plant) and natural fiber items
31(e.g., wool). In all cases, the product must be a commodity
32produced on an Iowa farm, a commodity produced on an Iowa farm
33and processed in this state, or a commodity produced on an Iowa
34farm and used as a component in a product processed in this
35state. The bill changes the fund’s name to the choose Iowa
-9-1promotional fund.
2AGRICULTURAL MARKETING — DAIRY FUND’S INNOVATION FUND
3AND PROGRAM. In 2023, the general assembly created a dairy
4innovation fund (dairy fund) and program (dairy program)
5(2023 Iowa Acts, chapter 101). The purpose of the dairy fund
6and dairy program is to expand dairy processing capacity in
7the state (Code section 159.31A). The dairy fund is used
8to support financing eligible businesses participating in
9the program in the form of grants, low-interest loans, or
10forgivable loans. DALS is specifically required to finance
11the expansion or refurbishing of existing milk plants or the
12construction of new milk plants that process and package raw
13milk into various milk and dairy products. Code chapter
14192 regulates the production, processing, labeling, and
15distribution (handling) of grade “A” milk and grade “A” milk
16products according to sanitary requirements (Code section
17192.102). Under the program, in order to receive financing,
18a milk plant must be operated under a permit issued by DALS
19pursuant to Code section 192.111. The bill provides that the
20milk plant may also operate under a permit issued pursuant to
21Code section 194.3A. Code chapter 194 governs the production,
22delivery, and processing of the less common grade “B” milk
23allowed for use in manufacturing dairy products. The bill also
24provides that the financing may be used for the acquisition
25and not just renting of dairy processing equipment. Finally,
26the bill substitutes the term “department” for “authority”
27in a provision that allows an eligible business receiving
28financial assistance under the program to receive assistance
29under another program.
30AGRICULTURAL MARKETING — VALUE-ADDED AGRICULTURAL GRANT
31FUND AND PROGRAM. The bill establishes the value-added
32agricultural grant program fund (value-added fund) and
33value-added agricultural grant program (value-added program)
34(new Code sections 159.31C and 159.31D). The value-added
35fund is administered by DALS and includes moneys appropriated
-10-1by the general assembly, and other moneys available to DALS,
2to support the value-added program. The purpose of the
3value-added program is to support projects and services that
4add value to agricultural commodities produced on Iowa farms
5(e.g., by processing). The program has been enacted and
6supported in recent DALS general appropriations Acts but not
7codified (see 2021 Iowa Acts, chapter 143, section 12; 2022
8Iowa Acts, chapter 1147, section 12; and 2023 Iowa Acts,
9chapter 109, section 4).
10REGULATION OF COMMERCIAL ESTABLISHMENTS. DALS regulates
11commercial establishments that keep certain nonagricultural
12animals for commercial purposes on a nonprofit or profit
13basis, including an animal shelter, pound, or research
14facility issued a certificate of registration (Code sections
15162.3, 162.4, and 162.4A); a pet shop, boarding kennel, or
16commercial kennel issued a state license (Code sections 162.5,
17162.5A, and 162.6); or a dealer, commercial breeder, or public
18auction who may elect to be either issued a state license or
19a permit. A permit is issued if the person is licensed under
20the federal Animal Welfare Act (7 U.S.C. ch.54) by the United
21States department of agriculture (Code sections 162.7, 162.8,
22and 162.9A). Code chapter 162 provides special regulations
23applicable to a greyhound dog if used for pari-mutuel wagering
24at a licensed racetrack (racing greyhound) (Code chapter 99D).
25The bill eliminates those special provisions. Currently, a
26person is regulated as a commercial breeder and is subject to
27license or permit requirements if the person breeds dogs or
28cats in exchange for payment with an exception that applies
29to a person who keeps three or fewer breeding greyhounds.
30The exception does not apply to a person who breeds racing
31greyhounds (Code section 162.2). A person applying for a
32state license or permit is required to pay DALS $175 with
33an exception for a person who keeps racing greyhounds (Code
34section 162.2B). A person who keeps greyhounds must be issued
35a state license and is subject to a fee established by DALS
-11-1rule which is currently $40 (21 IAC 67.17). A commercial
2establishment is required to comply with standard of care
3requirements including providing a kept animal with adequate
4feed, adequate water, housing facilities, sanitary control,
5grooming practices, and veterinary care as required by DALS
6rule (Code section 162.10A). A state licensee who is a
7commercial breeder keeping a racing greyhound may be required
8to comply with different rules adopted by the department.
9GRADE “A” MILK REGULATION. Iowa has adopted by reference
10the model “Grade ‘A’ Pasteurized Milk Ordinance” as part of
11its “Iowa Grade ‘A’ Milk Inspection Law” (Code chapter 192).
12The bill makes several editorial changes to improve the Code’s
13readability, including by defining the terms “department”
14as the department of agriculture and land stewardship and
15“secretary” as the secretary of agriculture, and using those
16terms consistently throughout the Code chapter. In order to
17handle raw milk for pasteurization and processing, a person
18must be issued a permit by DALS (Code section 192.107; 21
19IAC 68.2). Each year, DALS is required to conduct a survey
20of permittees to verify that the milk they handle meets
21requirements to be labeled grade “A” for pasteurization. The
22bill provides that the survey is to be conducted every other
23year. DALS may suspend or revoke a permit for a person who does
24not comply with the sanitary requirements.
-12-da/ns