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Senate File 2410 - IntroducedA Bill ForAn Act 1relating to agriculture, by providing for the
2administration of programs and regulations, making
3appropriations, and including effective date provisions.
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 15 until the foal is inspected if
7the mare was bred by other than an Iowa registered stallion and
8is not 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
15 Sec. 2. Section 15E.370, Code 2024, is amended to read as
16follows:
1715E.370 Butchery innovation and revitalization fund and
18 program.
191. As used in this section unless the context otherwise
20requires:
21a. “Department” means the department of agriculture and land
22stewardship.
23b. “Financial assistance” means assistance provided only
24from the funds and assets legally available to the authority
25pursuant to this section and includes assistance in the form of
26grants, low-interest loans, and forgivable loans.
27c. “Fund” means the butchery innovation and revitalization
28fund.
29d. “Located in” means the place or places at which
30a business’s operations are located and where at least
31ninety-eight percent of the business’s employees work, or where
32employees that are paid at least ninety-eight percent of the
33business’s payroll work.
34e. “Program” means the butchery innovation and
35revitalization program.
-1- 12. a. The fund is created in the state treasury under
2the control of the authority and consists of any moneys
3appropriated to the fund by the general assembly and any other
4moneys available and obtained or accepted by the authority
5for placement in the fund. The fund shall be used to award
6financial assistance as provided under the program. The
7authority shall use any moneys specifically appropriated for
8purposes of this section only for the purposes of the program.
9b. Notwithstanding section 8.33, moneys in the fund
10that remain unencumbered or unobligated at the close of the
11fiscal year shall not revert but shall remain available for
12expenditure for the purposes designated until the close of the
13succeeding fiscal year.
14c. The authority may use not more than five percent of
15the moneys in the fund at the beginning of each fiscal year
16for purposes of administrative costs, marketing, technical
17assistance, and other program support.
181. A butchery innovation and revitalization program is
19established within the department. The purpose of the program
20is to promote the development, modernization, and expansion of
21this state’s small-scale butchery industry.
223. 2. The authority, in consultation with In administering
23the program, the department, shall establish and administer the
24program for the purpose of awarding award financial assistance
25to eligible businesses for to support projects that do one or
26more of the following projects:
27a. To expand Expand or refurbish an existing, or to
28 establish a new, state-inspected small-scale meat processing
29business.
30b. To expand Expand or refurbish an existing, or to
31 establish a new, federally inspected small-scale meat
32processing business.
33c. To expand Expand or refurbish an existing, or to
34 establish a new, licensed custom locker.
35d. To expand Expand or refurbish an existing, or to
-2-1 establish a new, mobile slaughter unit that operates in
2compliance with the most current mobile slaughter unit
3compliance guide issued by the United States department of
4agriculture food safety and inspection service.
5e. To rent Rent buildings, refrigeration facilities, or
6 freezer facilities, or acquire equipment if necessary, to
7expand processing capacity, including mobile slaughter or
8refrigeration units used exclusively for meat or poultry
9processing.
104. 3. The authority, in consultation with the department,
11 shall establish eligibility criteria for the program by rule.
12The eligibility criteria must include all of the following:
13a. The business must be located in this state.
14b. The business must not have been subject to any regulatory
15enforcement action related to federal, state, or local
16environmental, worker safety, food processing, or food safety
17laws, rules, or regulations within the last five years.
18c. The business must only employ individuals legally
19authorized to work in the state.
20d. The business must not currently be in bankruptcy.
21e. The business must employ less than seventy-five
22full-time, nonseasonal individuals.
235. 4. A An eligible business seeking financial assistance
24under this section shall make application to the authority
25 department in the manner and on forms prescribed by the
26authority by rule department.
276. 5. Applications for financial assistance under this
28section shall be accepted during one or more annual application
29periods to be determined by the authority by rule established
30by the department. Upon reviewing and scoring all applications
31that are received during an application period, and subject to
32funding the availability of moneys, the authority department
33 may, in consultation with the department, award financial
34assistance to eligible businesses. A financial assistance
35award shall not exceed the amount of eligible project costs
-3-1included in the eligible business’s application. Priority
2shall be given to an eligible businesses whose business
3describing a proposed projects project under subsection 3 will
4 2 that is most likely to do any one or more of the following:
5a. Create new jobs.
6b. Create or expand opportunities for local small-scale
7farmers to market processed meat under private labels.
8c. Provide greater flexibility or convenience for local
9small-scale farmers to have animals processed.
107. 6. A An eligible business that is awarded financial
11assistance under this section may apply for financial
12assistance under other programs administered by the authority
13 department.
148. The authority shall, in consultation with the
15department, adopt rules pursuant to chapter 17A to administer
16this section.
17 Sec. 3. Section 159.20, subsection 2, Code 2024, is amended
18to read as follows:
192. The department shall establish and administer a
20choose Iowa promotional program as provided in part 2 of
21this subchapter, in order to provide consumers a choice in
22 programs that advance the purchasing food items of agricultural
23commodities produced on Iowa farms and Iowa products that
24originate as an agricultural commodity commodities produced on
25Iowa farms under this title, including chapter 187.
26 Sec. 4. Section 159.20, subsection 3, unnumbered paragraph
271, Code 2024, is amended to read as follows:
28As used in this subchapter section:
29 Sec. 5. Section 159.28, Code 2024, is amended to read as
30follows:
31159.28 Choose Iowa promotional program.
321. The department shall establish and administer a choose
33Iowa promotional program to advertise for retail sale on a
34retail basis a food item that originates as an agricultural
35commodity produced on an Iowa farm, and an Iowa product that
-4-1may include any of the following:
2a. An agricultural commodity produced on an Iowa farm,
3except that it may be prepared for sale by washing or packaging
4in this state.
5b. A product, if it is An agricultural commodity processed
6in this state and any of its ingredients, if its components
7 originate as an agricultural commodity produced on an Iowa
8farm.
92. a. The department may adopt rules further defining an
10Iowa farm, Iowa agricultural commodity, and Iowa product; and
11describing how an Iowa agricultural commodity originates on an
12Iowa farm.
13b. The department may adopt rules providing for the
14acceptable use of ingredients originating a component that
15originates from an agricultural commodities commodity not
16produced on an Iowa farms farm. In adopting the rules, the
17department may consider whether the ingredient component is
18an incidental additive or other component that the department
19determines is or insignificant part of an Iowa product.
20 Sec. 6. Section 159.29, subsections 1 and 5, Code 2024, are
21amended to read as follows:
221. As part of the choose Iowa promotional program, the
23department may establish a choose Iowa logo to identify a food
24item originating as an agricultural commodity produced on an
25Iowa farm an Iowa product.
265. The use of a choose Iowa logo does not do any of the
27following:
28a. Provide an express or implied guarantee or warranty
29concerning the safety, fitness, merchantability, or use of a
30food item product.
31b. Supersede, revise, or replace a state or federal labeling
32requirement, including but not limited to a provision in the
33federal Fair Packaging and Labeling Act, 15 U.S.C.§1451 et
34seq.
35c. Indicate the grade, specification, standard, or value of
-5-1any food item agricultural commodity, component, or product.
2 Sec. 7. Section 159.31, subsections 1, 2, and 3, Code 2024,
3are amended to read as follows:
41. A choose Iowa fund is established created in the state
5treasury under the management and control of the department.
62. The fund shall include moneys collected as fees by
7the department as provided in section 159.30 187.303, moneys
8appropriated by the general assembly, and other moneys
9available to and obtained or accepted by the department,
10including moneys from public or private sources.
113. Moneys in the fund are appropriated to the department
12and shall be used exclusively to carry out the provisions of
13this part administer the programs created in this subchapter
14 as determined and directed by the department, and shall not
15require further special authorization by the general assembly.
16 Sec. 8. Section 159.31A, Code 2024, is amended to read as
17follows:
18159.31A Dairy innovation fund and revitalization program.
191. As used in this section unless the context otherwise
20requires:
21a. “Financial assistance” means assistance provided only
22from the moneys and assets legally available to the department
23pursuant to this section and includes assistance in the form of
24grants, low-interest loans, and forgivable loans.
25b. “Fund” means the dairy innovation fund.
26c. “Located in” means the place or places at which
27a business’s operations are located and where at least
28ninety-eight percent of the business’s employees work, or where
29employees that are paid at least ninety-eight percent of the
30business’s payroll work.
31d. “Program” means the dairy innovation program.
322. a. The fund is created in the state treasury under
33the control of the department and consists of any moneys
34appropriated to the fund by the general assembly and any other
35moneys available to or obtained or accepted by the department
-6-1for placement in the fund. Moneys in the fund are appropriated
2to the department to award financial assistance as provided
3under the program. The department shall use any moneys
4specifically appropriated for purposes of this section only for
5the purposes of the program.
6b. Notwithstanding section 8.33, moneys in the fund
7that remain unencumbered or unobligated at the close of the
8fiscal year shall not revert but shall remain available for
9expenditure for the purposes designated until the close of the
10succeeding fiscal year.
111. A dairy innovation and revitalization program is created
12within the department. The purpose of the program is to
13promote the development, modernization, and expansion of this
14state’s dairy industry.
153. 2. The In administering the program, the department
16shall establish and administer the program for the purpose of
17awarding award financial assistance to eligible businesses
18engaged in to support projects that do one or more of the
19following:
20a. Expand or refurbish existing milk plants or establish a
21new milk plant, operating pursuant to a permit issued pursuant
22to section 192.111 or 194.3A.
23b. Expand or refurbish existing mobile dairy processing
24units, or establish new mobile dairy processing units.
25c. Rent buildings, refrigeration facilities, or freezer
26facilities, or equipment necessary to expand dairy processing
27capacity, including mobile dairy or refrigeration units used
28exclusively for dairy processing.
29d. Incorporate methods and technologies that reduce farm
30labor associated with milk production and storage, including
31but not limited to the use of robotics and processes or systems
32that operate using computerized equipment or machinery.
334. 3. The department shall establish eligibility criteria
34for the program by rule. The eligibility criteria must include
35all of the following:
-7- 1a. The business must be located in this state.
2b. The business must not have been subject to any regulatory
3enforcement action related to federal, state, or local
4environmental, worker safety, food processing, or food safety
5laws, rules, or regulations within the last five years.
6c. The business must only employ individuals legally
7authorized to work in this state.
8d. The business must not currently be in bankruptcy.
9e. The business must employ less than fifty individuals.
105. 4. A An eligible business seeking financial assistance
11under this section shall make application to the department in
12the manner and on forms prescribed by the department by rule.
136. 5. Applications for financial assistance under this
14section shall be accepted during one or more annual application
15periods to be determined established by the department by
16rule. Upon reviewing and scoring all applications that are
17received during an application period, and subject to funding
18 the availability of moneys, the department may award financial
19assistance to eligible businesses. A financial assistance
20award shall not exceed the amount of eligible project costs
21included in the eligible business’s application. Priority
22shall be given to eligible businesses whose proposed project
23or projects under subsection 3 will 2 are most likely to do any
24 one or more of the following:
25a. Create new jobs.
26b. Create or expand opportunities for local small-scale milk
27producers to market pasteurized milk and milk products under
28private labels.
29c. Provide greater flexibility or convenience for local
30small-scale farmers to have milk processed.
31d. Reduce labor associated with the on-farm production and
32storage of milk.
337. 6. A An eligible business that is awarded financial
34assistance under this section may apply for financial
35assistance under other programs administered by the authority
-8-1 department.
28. The department shall adopt rules pursuant to chapter 17A
3 to administer this section.
4 Sec. 9. NEW SECTION. 187.101 Short title.
5This chapter shall be known and may be cited as the “Choose
6Iowa Act”.
7 Sec. 10. NEW SECTION. 187.102 Definitions.
8As used in this chapter, unless the context otherwise
9requires:
101. “Agricultural commodity” means an animal or plant, or raw
11material originating from an animal or plant.
122. “Component” means an agricultural commodity that is
13combined to form a product during processing.
143. “Department” means the department of agriculture and land
15stewardship.
164. “Farm” means land and associated structures used to
17produce an agricultural commodity.
185. a. “Financial assistance” means support provided by the
19department to an eligible business under this chapter from
20moneys or other assets legally available to the department.
21b. “Financial assistance” includes any form of grant,
22low-interest loan, or forgivable loan.
236. “Food item” means an agricultural commodity, or an item
24processed from an agricultural commodity, that is fit for human
25consumption.
267. “Fund” means the choose Iowa fund created in section
27187.201.
288. “Horticulture item” means any of the following:
29a. A nursery, floral, or greenhouse plant.
30b. A product processed from a nursery, floral, or greenhouse
31plant, including a seed, rooting, cutting, tissue culture,
32seedling, or other propagation material.
339. “Located in” means the place or places at which
34a business’s operations are located and where at least
35ninety-eight percent of the business’s employees work, or where
-9-1employees that are paid at least ninety-eight percent of the
2business’s payroll work.
310. “Natural fiber item” means fiber originating from
4an agricultural commodity for use in processing, including
5manufacturing into a textile, apparel, or other similar
6product.
711. “Process” means to prepare a product that includes an
8agricultural commodity alone or as a component.
912. a. “Product” means an agricultural commodity that
10in its raw or processed state is moveable at the time of its
11retail sale.
12b. “Product” includes but is not limited to a food item,
13horticulture item, or natural fiber item.
14 Sec. 11. NEW SECTION. 187.103 Administration.
15The department shall adopt all rules under chapter 17A as it
16determines necessary or desirable to administer this chapter.
17 Sec. 12. NEW SECTION. 187.321 Value-added agricultural
18grant program.
19A value-added agricultural grant program is created within
20the department. The purpose of the program is to identify,
21evaluate, and support projects and services that add value to
22agricultural commodities produced on Iowa farms, including by
23supporting new technologies and marketing strategies.
24 Sec. 13. REPEAL. Sections 159.26 and 159.27, Code 2024,
25are repealed.
26 Sec. 14. TRANSFER OF MONEYS.
271. Not later than June 30, 2024, the unencumbered or
28unobligated balances in all of the following funds shall be
29transferred to the choose Iowa fund created in section 159.31
30as follows:
31a. (1) The butchery innovation and revitalization fund
32created in section 15E.370.
33(2) The economic development authority shall retain any
34encumbered or obligated moneys in the fund to wind down the
35authority’s administration of the butchery innovation and
-10-1revitalization program.
2b. The dairy innovation fund created in section 159.31A.
32. Not later than June 30, 2024, any moneys appropriated
4to the department of agriculture and land stewardship that the
5department has not expended as required to support a value
6added agriculture grant program shall be transferred to the
7choose Iowa fund, including moneys appropriated in 2022 Iowa
8Acts, chapter 1147, section 12, and 2023 Iowa Acts, chapter
9109, section 4, subsection 9.
10 Sec. 15. WINDING DOWN PROVISIONS. The economic development
11authority shall only use moneys in the butchery innovation and
12revitalization fund created in section 15E.370 to wind down its
13administration of the butchery innovation and revitalization
14fund and program created in section 15E.370.
15 Sec. 16. TRANSITION PROVISIONS.
161. Any promulgated administrative decision, including a
17rule, regulation, form, order, or directive, by the economic
18development authority governing the butchery innovation
19and revitalization program created in section 15E.370 and
20transferred in this division of this Act to the department
21of agriculture and land stewardship, and in effect on June
2230, 2024, shall continue in full force and effect until
23amended, repealed, or supplemented by affirmative action of the
24department of agriculture and land stewardship.
252. The terms or conditions of any financial assistance
26awarded, or contract entered into, as of June 30, 2024, by
27the economic development authority governing the butchery
28innovation and revitalization program created in section
2915E.370 and transferred in this division of this Act to the
30department of agriculture and land stewardship, and in effect
31on June 30, 2024, shall continue in full force and effect
32pursuant to the terms of the award or contract.
333. Any legal action, including an administrative hearing,
34cause of action, or statute of limitation relating to the
35economic development authority governing the butchery
-11-1innovation and revitalization program created in section
215E.370 and transferred to the department of agriculture and
3land stewardship, and in effect on June 30, 2024, shall not
4be affected as a result of the transfer, except that the
5department shall be regarded as the authority’s successor in
6interest.
7 Sec. 17. CODE EDITOR DIRECTIVE.
81. The Code editor is directed to make the following
9transfers:
10a. Section 15E.370 to 187.311.
11b. Section 159.28 to 187.301.
12c. Section 159.29 to 187.302.
13d. Section 159.30 to 187.303.
14e. Section 159.31 to 187.201.
15f. Section 159.31A to 187.313.
162. The Code editor shall correct internal references in the
17Code and in any enacted legislation as necessary due to the
18enactment of this section.
19 Sec. 18. DIRECTIONS TO CODE EDITOR — SUBCHAPTERS AND
20PARTS. The Code editor is directed to divide the provisions
21of chapter 187, as amended, enacted, or transferred in this
22division of this Act, into subchapters and parts as follows:
231. Subchapter I, including sections 187.101 through
24187.103.
252. Subchapter II, including section 187.201.
263. Subchapter III, as follows:
27a. Part 1, including sections 187.301 through 187.303.
28b. Part 2, including sections 187.311 and 187.313.
29c. Part 3, including section 187.321.
30 Sec. 19. EFFECTIVE DATE.
311. Except as provided in subsection 2, this division of this
32Act takes effect July 1, 2024.
332. The following sections of this division of this Act,
34being deemed of immediate importance, take effect upon
35enactment:
-12- 1a. The section that provides for the transfer of moneys.
2b. The section that provides for the transition of
3administrative decisions, financial assistance or contracts, or
4legal action.
5c. The section that provides for the winding down of the
6butchery innovation and revitalization fund and program created
7in section 15E.370.
8DIVISION III
9COMMERCIAL ESTABLISHMENTS
10 Sec. 20. Section 162.2, subsection 8, Code 2024, is amended
11to read as follows:
128. “Commercial breeder” means a person, engaged in the
13business of breeding dogs or cats, who sells, exchanges, or
14leases dogs or cats in return for consideration, or who offers
15to do so, whether or not the animals are raised, trained,
16groomed, or boarded by the person. A person who owns or
17harbors three or fewer breeding males or females is not a
18commercial breeder. However, a person who breeds any number
19of breeding male or female greyhounds for the purposes of
20using them for pari-mutuel wagering at a racetrack as provided
21in chapter 99D shall be considered a commercial breeder
22irrespective of whether the person sells, leases, or exchanges
23the greyhounds for consideration or offers to do so.
24 Sec. 21. Section 162.2B, subsection 1, paragraph b, Code
252024, is amended to read as follows:
26b. For the issuance or renewal of a state license or permit,
27one hundred seventy-five dollars. However, a commercial
28breeder who owns, keeps, breeds, or transports a greyhound dog
29for pari-mutuel wagering at a racetrack as provided in chapter
3099D shall pay a different fee for the issuance or renewal of a
31state license as provided in rules adopted by the department.
32 Sec. 22. Section 162.10A, subsection 2, Code 2024, is
33amended to read as follows:
342. a. Except as provided in paragraph “b” or “c”, a
35commercial establishment shall comply with rules that the
-13-1department adopts to implement subsection 1. A commercial
2establishment shall be regulated under this paragraph “a”
3unless the person is a state licensee as provided in paragraph
4“b” or a permittee as provided in paragraph “c” “b”.
5b. A state licensee who is a commercial breeder owning,
6breeding, transporting, or keeping a greyhound dog for
7pari-mutuel wagering at a racetrack as provided in chapter 99D
8 may be required to comply with different rules adopted by the
9department.
10c. b. A permittee is not required to comply with rules
11that the department adopts to implement a standard of care as
12provided in subsection 1 for state licensees and registrants.
13The department may adopt rules regulating a standard of care
14for a permittee, so long as the rules are not more restrictive
15than required for a permittee under the Animal Welfare Act.
16However, the department may adopt prescriptive rules relating
17to the standard of care. Regardless of whether the department
18adopts such rules, a permittee meets the standard of care
19required in subsection 1 if it voluntarily complies with rules
20applicable to state licensees or registrants. A finding by
21the United States department of agriculture that a permittee
22complies with the Animal Welfare Act is not conclusive when
23determining that the permittee provides a standard of care
24required in subsection 1.
25 Sec. 23. Section 717B.3, subsection 2, paragraph a,
26subparagraph (2), subparagraph divisions (a) and (b), Code
272024, are amended to read as follows:
28(a) A state licensee or registrant operating pursuant to
29section 162.10A, subsection 2, paragraph “a” or “b”.
30(b) A permittee operating pursuant to section 162.10A,
31subsection 2, paragraph “c” “b”.
32DIVISION IV
33GRADE “A” MILK
34 Sec. 24. Section 192.101A, Code 2024, is amended by adding
35the following new subsections:
-14-1 NEW SUBSECTION. 1A. “Department” means the department of
2agriculture and land stewardship.
3 NEW SUBSECTION. 5. “Secretary” means the secretary of
4agriculture.
5 Sec. 25. Section 192.109, Code 2024, is amended to read as
6follows:
7192.109 Certification of grade “A” label.
8The department of agriculture and land stewardship shall
9annually biennially conduct a survey and based on that survey
10 certify all milk labeled grade “A” pasteurized and grade “A”
11raw milk for pasteurization, and, in. In the event that a
12survey shows the requirements for production, processing, and
13distribution for such grade are not being complied with, the
14 that fact thereof shall be certified by the department to the
15secretary of agriculture who shall proceed with the provisions
16of section 192.107 for suspending the permit of the violator or
17who, if the secretary did not issue such permit, shall withdraw
18the grade “A” declared on the label.
19 Sec. 26. Section 192.111, subsection 1, paragraph a,
20subparagraph (5), Code 2024, is amended to read as follows:
21(5) A milk grader which must obtain a milk grader permit and
22pay a license permit fee not greater than twenty dollars.
23 Sec. 27. Section 192.116, Code 2024, is amended to read as
24follows:
25192.116 Bacteriologists.
26The department of agriculture and land stewardship may
27employ dairy specialists or bacteriologists who shall devote
28their full time to the improvement of sanitation in the
29production, processing, and marketing of dairy products.
30Said The dairy specialists and bacteriologists shall have
31qualifications as to education and experience and such other
32requirements as the secretary may require.
33 Sec. 28. Section 192.118, subsection 1, Code 2024, is
34amended to read as follows:
351. To ensure uniformity in the tests and reporting, an
-15-1employee certified by the United States public health service
2of the bacteriological laboratory of the department shall
3annually certify, in accordance with rules adopted by the
4department incorporating or incorporating by reference the
5federal publication entitled “Evaluation of Milk Laboratories”,
6all laboratories doing work in the sanitary quality of
7milk and dairy products for public report. The approval by
8the department shall be based on the evaluation of these
9laboratories as to personnel training, laboratory methods
10used, and reporting. The results on tests made by approved
11laboratories shall be reported to the department on request,
12on forms prescribed by the secretary of agriculture, and such
13reports may be used by the department.
14DIVISION V
15FERTILIZERS AND SOIL CONDITIONERS
16 Sec. 29. Section 200.3, subsection 29, Code 2024, is amended
17to read as follows:
1829. The term “unmanipulated manures” means any substances
19composed primarily of excreta, plant remains, or mixtures of
20such substances which have not been processed in any manner
21other than dewatering.
22 Sec. 30. EFFECTIVE DATE. This division of this Act, being
23deemed of immediate importance, takes effect upon enactment.
24EXPLANATION
25The inclusion of this explanation does not constitute agreement with
26the explanation’s substance by the members of the general assembly.
27GENERAL. This bill provides for the administration of
28a number of programs and regulations by the department of
29agriculture and land stewardship (DALS). Specifically,
30the bill addresses the promotion of the native horse racing
31industry by providing for the qualification of Iowa-foaled
32horse breeds; agricultural marketing, by revising a number
33of existing programs such as the choose Iowa promotional
34program and choose Iowa fund, the butchery innovation and
35revitalization fund and program, the dairy innovation program
-16-1and fund, and the value-added agricultural grant program; the
2regulation of commercial establishments that keep certain
3nonagricultural animals for commercial purposes, by eliminating
4special requirements related to greyhound racing; and the
5regulation of permittees authorized to engage in the handling
6of grade “A” milk and related dairy products.
7IOWA-FOALED HORSES. DALS regulates the status and care
8of race horses involved in pari-mutual wagering conducted
9by persons licensed by the racing and gaming commission to
10operate racetracks and manage associated purses. There are
11three breeds of horses involved in such racing, including
12thoroughbred horses, quarter horses, and standardbred horses.
13For at least one race of each racing day, either a race must
14be limited to Iowa-foaled horses or alternatively Iowa-foaled
15horses must be given a weight advantage (Code section 99D.22).
16At least 20 percent of all net purse moneys distributed to
17each breed must be awarded in the form of Iowa breeder awards
18or purse supplements to Iowa breeders. One criteria used to
19determine a foal’s status as Iowa bred occurs in cases in which
20the foal’s brood mare was bred by a stallion not recognized
21by DALS as an Iowa registered stallion and was not bred back
22to an Iowa registered stallion. In that case, the brood mare
23must have continuous Iowa residency from December 31 until the
24foal is inspected. The bill provides that for thoroughbred
25horses that beginning date is moved back to December 15, and
26for quarter horses and standardbred horses that beginning date
27is moved forward to January 31.
28AGRICULTURAL MARKETING — CHOOSE IOWA PROMOTIONAL PROGRAM
29AND CHOOSE IOWA PROMOTIONAL FUND. In 2022, the general
30assembly established the choose Iowa promotional program
31(choose Iowa program) and choose Iowa fund administered by
32DALS (2022 Iowa Acts, chapter 1152). The stated purpose of
33the choose Iowa program and fund is to provide consumers a
34choice to purchase a food item originating as an agricultural
35commodity (commodity) produced on an Iowa farm or a food
-17-1item processed in Iowa using the commodity as an ingredient
2(Code sections 159.26 through 159.31). As part of the choose
3Iowa program, DALS may establish a choose Iowa logo (logo)
4and register the logo for legal protection with the state or
5the United States (e.g., by trademark or copyright). DALS
6may also enter into a licensing agreement with a person who
7applies to use the logo when selling a food item on a retail
8basis. A choose Iowa fund was established to finance the
9program. The fund includes fees paid by licensees and any
10moneys appropriated by the general assembly. The bill uses
11the term “product” to describe both raw and processed items
12(i.e., moveable goods) that may be sold at retail using the
13logo. It expands the program to include horticulture items (a
14nursery, floral, or greenhouse plant) and natural fiber items
15(e.g., wool). In all cases, the product must be a commodity
16produced on an Iowa farm, a commodity produced on an Iowa farm
17and processed in this state, or a commodity produced on an Iowa
18farm and used as a component in a product processed in this
19state. The bill changes the fund’s name to the choose Iowa
20promotional fund.
21AGRICULTURAL MARKETING — BUTCHERY AND DAIRY INNOVATION
22FUNDS AND PROGRAMS. In 2021, the general assembly created
23a butchery innovation and revitalization fund and program
24(2021 Iowa Acts, chapter 175) administered by the economic
25development authority (IEDA) under Code section 15E.370. Its
26purpose is to provide financial assistance to small-scale meat
27processing businesses and locker plants. In 2023, the general
28assembly created a dairy innovation fund and program (2023 Iowa
29Acts, chapter 101) administered by DALS under Code section
30159.31A. Its purpose is to provide financial assistance to
31small-scale businesses engaged in dairy processing. Both
32the funds and programs share a number of common provisions.
33Each provide financing to an eligible business in the form
34of a grant, low-interest loan, or forgivable loan, and each
35provide similar criteria for participation, including a limit
-18-1on the number of individuals that may be employed by the
2business. The bill eliminates both the butchery innovation and
3revitalization fund and dairy innovation fund. It provides
4that DALS rather than IEDA will administer the butchery
5innovation and revitalization program. It also changes the
6name of the dairy innovation program to the dairy innovation
7and revitalization program.
8AGRICULTURAL MARKETING — VALUE-ADDED AGRICULTURAL GRANT
9PROGRAM. The bill establishes the value-added agricultural
10grant program. The purpose of the program is to support
11projects and services that add value to agricultural
12commodities produced on Iowa farms (e.g., by processing). The
13program has been enacted and supported in recent DALS general
14appropriations Acts but not codified (see 2021 Iowa Acts,
15chapter 143, section 12; 2022 Iowa Acts, chapter 1147, section
1612; and 2023 Iowa Acts, chapter 109, section 4).
17AGRICULTURAL MARKETING — CONSOLIDATION OF FUNDS AND
18PROGRAMS. The bill consolidates a number of agricultural
19marketing funds and programs in Code chapters 15E and 159
20under new Code chapter 187 administered by DALS. The new
21Code chapter is divided into three subchapters. Subchapter
22I provides three new Code sections, including Code section
23187.101 that names the Code chapter, “Choose Iowa Act”; Code
24section 187.102 that combines definitions taken from other Code
25sections; and Code section 187.103 authorizing DALS to adopt
26rules necessary to administer the Code chapter. Subchapter II
27includes amended Code section 159.31, establishing the choose
28Iowa fund (transferred to Code section 187.201) which will
29support all of the Code chapter’s marketing programs. Finally,
30subchapter III includes three parts. Part 1 includes amended
31Code section 159.28 establishing the choose Iowa promotional
32program (transferred to Code section 187.301), Code section
33159.29 providing for the choose Iowa logo (transferred to Code
34section 187.302), and Code section 159.30 providing for license
35agreements and fees (transferred to Code section 187.303).
-19-1Part 2 includes amended Code section 15E.370 providing for the
2butchery innovation and revitalization program (transferred to
3Code section 187.311) and amended Code section 159.31A creating
4the dairy innovation and revitalization program (transferred to
5Code section 187.313. Part 3 includes new Code section 187.321
6providing for the value-added agricultural grant program. The
7bill also provides for transfer of moneys to the choose Iowa
8fund from the eliminated butchery innovation and revitalization
9fund and dairy innovation fund. The choose Iowa fund also
10includes any moneys that had been appropriated to support the
11value-added agricultural grant program. Finally, the bill
12includes provisions allowing IEDA to wind up its affairs, and
13transition provisions.
14REGULATION OF COMMERCIAL ESTABLISHMENTS. DALS regulates
15commercial establishments that keep certain nonagricultural
16animals for commercial purposes on a nonprofit or profit
17basis, including an animal shelter, pound, or research
18facility issued a certificate of registration (Code sections
19162.3, 162.4, and 162.4A); a pet shop, boarding kennel, or
20commercial kennel issued a state license (Code sections 162.5,
21162.5A, and 162.6); or a dealer, commercial breeder, or public
22auction who may elect to be either issued a state license or
23a permit. A permit is issued if the person is licensed under
24the federal Animal Welfare Act (7 U.S.C. ch.54) by the United
25States department of agriculture (Code sections 162.7, 162.8,
26and 162.9A). Code chapter 162 provides special regulations
27applicable to a greyhound dog if used for pari-mutuel wagering
28at a licensed racetrack (racing greyhound) (Code chapter 99D).
29The bill eliminates those special provisions. Currently, a
30person is regulated as a commercial breeder and is subject to
31license or permit requirements if the person breeds dogs or
32cats in exchange for payment with an exception that applies
33to a person who keeps three or fewer breeding greyhounds.
34The exception does not apply to a person who breeds racing
35greyhounds (Code section 162.2). A person applying for a
-20-1state license or permit is required to pay DALS $175 with
2an exception for a person who keeps racing greyhounds (Code
3section 162.2B). A person who keeps greyhounds must be issued
4a state license and is subject to a fee established by DALS
5rule which is currently $40 (21 IAC 67.17). A commercial
6establishment is required to comply with standard of care
7requirements including providing a kept animal with adequate
8feed, adequate water, housing facilities, sanitary control,
9grooming practices, and veterinary care as required by DALS
10rule (Code section 162.10A). A state licensee who is a
11commercial breeder keeping a racing greyhound may be required
12to comply with different rules adopted by the department.
13GRADE “A” MILK REGULATION. Iowa has adopted by reference
14the model “Grade ‘A’ Pasteurized Milk Ordinance” as part of
15its “Iowa Grade ‘A’ Milk Inspection Law” (Code chapter 192).
16The bill makes several editorial changes to improve the Code’s
17readability, including by defining the terms “department”
18as the department of agriculture and land stewardship and
19“secretary” as the secretary of agriculture, and using those
20terms consistently throughout the Code chapter. In order to
21handle raw milk for pasteurization and processing, a person
22must be issued a permit by DALS (Code section 192.107; 21
23IAC 68.2). Each year, DALS is required to conduct a survey
24of permittees to verify that the milk they handle meets
25requirements to be labeled grade “A” for pasteurization. The
26bill provides that the survey is to be conducted every other
27year. DALS may suspend or revoke a permit for a person who does
28not comply with the sanitary requirements.
29UNMANIPULATED MANURES. The bill amends a provision in Code
30chapter 200, which provides for the regulation of the sale
31of fertilizers and soil conditioners by DALS. Specifically,
32the bill amends the defined term “unmanipulated manures” which
33means any substances composed of excreta or plant remains
34that have not been processed. The bill provides that the
35term includes such substances processed by dewatering. This
-21-1provision takes effect upon enactment.
2EFFECTIVE DATES. The bill takes effect July 1, 2024,
3except for three sections that take effect upon enactment.
4The sections all relate to agricultural marketing and include
5provisions authorizing the transfer of moneys, winding down
6affairs by IEDA, and an administrative transition period.
-22-da/ns
2administration of programs and regulations, making
3appropriations, and including effective date provisions.
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 15 until the foal is inspected if
7the mare was bred by other than an Iowa registered stallion and
8is not 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
15 Sec. 2. Section 15E.370, Code 2024, is amended to read as
16follows:
1715E.370 Butchery innovation and revitalization fund and
18 program.
191. As used in this section unless the context otherwise
20requires:
21a. “Department” means the department of agriculture and land
22stewardship.
23b. “Financial assistance” means assistance provided only
24from the funds and assets legally available to the authority
25pursuant to this section and includes assistance in the form of
26grants, low-interest loans, and forgivable loans.
27c. “Fund” means the butchery innovation and revitalization
28fund.
29d. “Located in” means the place or places at which
30a business’s operations are located and where at least
31ninety-eight percent of the business’s employees work, or where
32employees that are paid at least ninety-eight percent of the
33business’s payroll work.
34e. “Program” means the butchery innovation and
35revitalization program.
-1- 12. a. The fund is created in the state treasury under
2the control of the authority and consists of any moneys
3appropriated to the fund by the general assembly and any other
4moneys available and obtained or accepted by the authority
5for placement in the fund. The fund shall be used to award
6financial assistance as provided under the program. The
7authority shall use any moneys specifically appropriated for
8purposes of this section only for the purposes of the program.
9b. Notwithstanding section 8.33, moneys in the fund
10that remain unencumbered or unobligated at the close of the
11fiscal year shall not revert but shall remain available for
12expenditure for the purposes designated until the close of the
13succeeding fiscal year.
14c. The authority may use not more than five percent of
15the moneys in the fund at the beginning of each fiscal year
16for purposes of administrative costs, marketing, technical
17assistance, and other program support.
181. A butchery innovation and revitalization program is
19established within the department. The purpose of the program
20is to promote the development, modernization, and expansion of
21this state’s small-scale butchery industry.
223. 2. The authority, in consultation with In administering
23the program, the department, shall establish and administer the
24program for the purpose of awarding award financial assistance
25to eligible businesses for to support projects that do one or
26more of the following projects:
27a. To expand Expand or refurbish an existing, or to
28 establish a new, state-inspected small-scale meat processing
29business.
30b. To expand Expand or refurbish an existing, or to
31 establish a new, federally inspected small-scale meat
32processing business.
33c. To expand Expand or refurbish an existing, or to
34 establish a new, licensed custom locker.
35d. To expand Expand or refurbish an existing, or to
-2-1 establish a new, mobile slaughter unit that operates in
2compliance with the most current mobile slaughter unit
3compliance guide issued by the United States department of
4agriculture food safety and inspection service.
5e. To rent Rent buildings, refrigeration facilities, or
6 freezer facilities, or acquire equipment if necessary, to
7expand processing capacity, including mobile slaughter or
8refrigeration units used exclusively for meat or poultry
9processing.
104. 3. The authority, in consultation with the department,
11 shall establish eligibility criteria for the program by rule.
12The eligibility criteria must include all of the following:
13a. The business must be located in this state.
14b. The business must not have been subject to any regulatory
15enforcement action related to federal, state, or local
16environmental, worker safety, food processing, or food safety
17laws, rules, or regulations within the last five years.
18c. The business must only employ individuals legally
19authorized to work in the state.
20d. The business must not currently be in bankruptcy.
21e. The business must employ less than seventy-five
22full-time, nonseasonal individuals.
235. 4. A An eligible business seeking financial assistance
24under this section shall make application to the authority
25 department in the manner and on forms prescribed by the
26authority by rule department.
276. 5. Applications for financial assistance under this
28section shall be accepted during one or more annual application
29periods to be determined by the authority by rule established
30by the department. Upon reviewing and scoring all applications
31that are received during an application period, and subject to
32funding the availability of moneys, the authority department
33 may, in consultation with the department, award financial
34assistance to eligible businesses. A financial assistance
35award shall not exceed the amount of eligible project costs
-3-1included in the eligible business’s application. Priority
2shall be given to an eligible businesses whose business
3describing a proposed projects project under subsection 3 will
4 2 that is most likely to do any one or more of the following:
5a. Create new jobs.
6b. Create or expand opportunities for local small-scale
7farmers to market processed meat under private labels.
8c. Provide greater flexibility or convenience for local
9small-scale farmers to have animals processed.
107. 6. A An eligible business that is awarded financial
11assistance under this section may apply for financial
12assistance under other programs administered by the authority
13 department.
148. The authority shall, in consultation with the
15department, adopt rules pursuant to chapter 17A to administer
16this section.
17 Sec. 3. Section 159.20, subsection 2, Code 2024, is amended
18to read as follows:
192. The department shall establish and administer a
20choose Iowa promotional program as provided in part 2 of
21this subchapter, in order to provide consumers a choice in
22 programs that advance the purchasing food items of agricultural
23commodities produced on Iowa farms and Iowa products that
24originate as an agricultural commodity commodities produced on
25Iowa farms under this title, including chapter 187.
26 Sec. 4. Section 159.20, subsection 3, unnumbered paragraph
271, Code 2024, is amended to read as follows:
28As used in this subchapter section:
29 Sec. 5. Section 159.28, Code 2024, is amended to read as
30follows:
31159.28 Choose Iowa promotional program.
321. The department shall establish and administer a choose
33Iowa promotional program to advertise for retail sale on a
34retail basis a food item that originates as an agricultural
35commodity produced on an Iowa farm, and an Iowa product that
-4-1may include any of the following:
2a. An agricultural commodity produced on an Iowa farm,
3except that it may be prepared for sale by washing or packaging
4in this state.
5b. A product, if it is An agricultural commodity processed
6in this state and any of its ingredients, if its components
7 originate as an agricultural commodity produced on an Iowa
8farm.
92. a. The department may adopt rules further defining an
10Iowa farm, Iowa agricultural commodity, and Iowa product; and
11describing how an Iowa agricultural commodity originates on an
12Iowa farm.
13b. The department may adopt rules providing for the
14acceptable use of ingredients originating a component that
15originates from an agricultural commodities commodity not
16produced on an Iowa farms farm. In adopting the rules, the
17department may consider whether the ingredient component is
18an incidental additive or other component that the department
19determines is or insignificant part of an Iowa product.
20 Sec. 6. Section 159.29, subsections 1 and 5, Code 2024, are
21amended to read as follows:
221. As part of the choose Iowa promotional program, the
23department may establish a choose Iowa logo to identify a food
24item originating as an agricultural commodity produced on an
25Iowa farm an Iowa product.
265. The use of a choose Iowa logo does not do any of the
27following:
28a. Provide an express or implied guarantee or warranty
29concerning the safety, fitness, merchantability, or use of a
30food item product.
31b. Supersede, revise, or replace a state or federal labeling
32requirement, including but not limited to a provision in the
33federal Fair Packaging and Labeling Act, 15 U.S.C.§1451 et
34seq.
35c. Indicate the grade, specification, standard, or value of
-5-1any food item agricultural commodity, component, or product.
2 Sec. 7. Section 159.31, subsections 1, 2, and 3, Code 2024,
3are amended to read as follows:
41. A choose Iowa fund is established created in the state
5treasury under the management and control of the department.
62. The fund shall include moneys collected as fees by
7the department as provided in section 159.30 187.303, moneys
8appropriated by the general assembly, and other moneys
9available to and obtained or accepted by the department,
10including moneys from public or private sources.
113. Moneys in the fund are appropriated to the department
12and shall be used exclusively to carry out the provisions of
13this part administer the programs created in this subchapter
14 as determined and directed by the department, and shall not
15require further special authorization by the general assembly.
16 Sec. 8. Section 159.31A, Code 2024, is amended to read as
17follows:
18159.31A Dairy innovation fund and revitalization program.
191. As used in this section unless the context otherwise
20requires:
21a. “Financial assistance” means assistance provided only
22from the moneys and assets legally available to the department
23pursuant to this section and includes assistance in the form of
24grants, low-interest loans, and forgivable loans.
25b. “Fund” means the dairy innovation fund.
26c. “Located in” means the place or places at which
27a business’s operations are located and where at least
28ninety-eight percent of the business’s employees work, or where
29employees that are paid at least ninety-eight percent of the
30business’s payroll work.
31d. “Program” means the dairy innovation program.
322. a. The fund is created in the state treasury under
33the control of the department and consists of any moneys
34appropriated to the fund by the general assembly and any other
35moneys available to or obtained or accepted by the department
-6-1for placement in the fund. Moneys in the fund are appropriated
2to the department to award financial assistance as provided
3under the program. The department shall use any moneys
4specifically appropriated for purposes of this section only for
5the purposes of the program.
6b. Notwithstanding section 8.33, moneys in the fund
7that remain unencumbered or unobligated at the close of the
8fiscal year shall not revert but shall remain available for
9expenditure for the purposes designated until the close of the
10succeeding fiscal year.
111. A dairy innovation and revitalization program is created
12within the department. The purpose of the program is to
13promote the development, modernization, and expansion of this
14state’s dairy industry.
153. 2. The In administering the program, the department
16shall establish and administer the program for the purpose of
17awarding award financial assistance to eligible businesses
18engaged in to support projects that do one or more of the
19following:
20a. Expand or refurbish existing milk plants or establish a
21new milk plant, operating pursuant to a permit issued pursuant
22to section 192.111 or 194.3A.
23b. Expand or refurbish existing mobile dairy processing
24units, or establish new mobile dairy processing units.
25c. Rent buildings, refrigeration facilities, or freezer
26facilities, or equipment necessary to expand dairy processing
27capacity, including mobile dairy or refrigeration units used
28exclusively for dairy processing.
29d. Incorporate methods and technologies that reduce farm
30labor associated with milk production and storage, including
31but not limited to the use of robotics and processes or systems
32that operate using computerized equipment or machinery.
334. 3. The department shall establish eligibility criteria
34for the program by rule. The eligibility criteria must include
35all of the following:
-7- 1a. The business must be located in this state.
2b. The business must not have been subject to any regulatory
3enforcement action related to federal, state, or local
4environmental, worker safety, food processing, or food safety
5laws, rules, or regulations within the last five years.
6c. The business must only employ individuals legally
7authorized to work in this state.
8d. The business must not currently be in bankruptcy.
9e. The business must employ less than fifty individuals.
105. 4. A An eligible business seeking financial assistance
11under this section shall make application to the department in
12the manner and on forms prescribed by the department by rule.
136. 5. Applications for financial assistance under this
14section shall be accepted during one or more annual application
15periods to be determined established by the department by
16rule. Upon reviewing and scoring all applications that are
17received during an application period, and subject to funding
18 the availability of moneys, the department may award financial
19assistance to eligible businesses. A financial assistance
20award shall not exceed the amount of eligible project costs
21included in the eligible business’s application. Priority
22shall be given to eligible businesses whose proposed project
23or projects under subsection 3 will 2 are most likely to do any
24 one or more of the following:
25a. Create new jobs.
26b. Create or expand opportunities for local small-scale milk
27producers to market pasteurized milk and milk products under
28private labels.
29c. Provide greater flexibility or convenience for local
30small-scale farmers to have milk processed.
31d. Reduce labor associated with the on-farm production and
32storage of milk.
337. 6. A An eligible business that is awarded financial
34assistance under this section may apply for financial
35assistance under other programs administered by the authority
-8-1 department.
28. The department shall adopt rules pursuant to chapter 17A
3 to administer this section.
4 Sec. 9. NEW SECTION. 187.101 Short title.
5This chapter shall be known and may be cited as the “Choose
6Iowa Act”.
7 Sec. 10. NEW SECTION. 187.102 Definitions.
8As used in this chapter, unless the context otherwise
9requires:
101. “Agricultural commodity” means an animal or plant, or raw
11material originating from an animal or plant.
122. “Component” means an agricultural commodity that is
13combined to form a product during processing.
143. “Department” means the department of agriculture and land
15stewardship.
164. “Farm” means land and associated structures used to
17produce an agricultural commodity.
185. a. “Financial assistance” means support provided by the
19department to an eligible business under this chapter from
20moneys or other assets legally available to the department.
21b. “Financial assistance” includes any form of grant,
22low-interest loan, or forgivable loan.
236. “Food item” means an agricultural commodity, or an item
24processed from an agricultural commodity, that is fit for human
25consumption.
267. “Fund” means the choose Iowa fund created in section
27187.201.
288. “Horticulture item” means any of the following:
29a. A nursery, floral, or greenhouse plant.
30b. A product processed from a nursery, floral, or greenhouse
31plant, including a seed, rooting, cutting, tissue culture,
32seedling, or other propagation material.
339. “Located in” means the place or places at which
34a business’s operations are located and where at least
35ninety-eight percent of the business’s employees work, or where
-9-1employees that are paid at least ninety-eight percent of the
2business’s payroll work.
310. “Natural fiber item” means fiber originating from
4an agricultural commodity for use in processing, including
5manufacturing into a textile, apparel, or other similar
6product.
711. “Process” means to prepare a product that includes an
8agricultural commodity alone or as a component.
912. a. “Product” means an agricultural commodity that
10in its raw or processed state is moveable at the time of its
11retail sale.
12b. “Product” includes but is not limited to a food item,
13horticulture item, or natural fiber item.
14 Sec. 11. NEW SECTION. 187.103 Administration.
15The department shall adopt all rules under chapter 17A as it
16determines necessary or desirable to administer this chapter.
17 Sec. 12. NEW SECTION. 187.321 Value-added agricultural
18grant program.
19A value-added agricultural grant program is created within
20the department. The purpose of the program is to identify,
21evaluate, and support projects and services that add value to
22agricultural commodities produced on Iowa farms, including by
23supporting new technologies and marketing strategies.
24 Sec. 13. REPEAL. Sections 159.26 and 159.27, Code 2024,
25are repealed.
26 Sec. 14. TRANSFER OF MONEYS.
271. Not later than June 30, 2024, the unencumbered or
28unobligated balances in all of the following funds shall be
29transferred to the choose Iowa fund created in section 159.31
30as follows:
31a. (1) The butchery innovation and revitalization fund
32created in section 15E.370.
33(2) The economic development authority shall retain any
34encumbered or obligated moneys in the fund to wind down the
35authority’s administration of the butchery innovation and
-10-1revitalization program.
2b. The dairy innovation fund created in section 159.31A.
32. Not later than June 30, 2024, any moneys appropriated
4to the department of agriculture and land stewardship that the
5department has not expended as required to support a value
6added agriculture grant program shall be transferred to the
7choose Iowa fund, including moneys appropriated in 2022 Iowa
8Acts, chapter 1147, section 12, and 2023 Iowa Acts, chapter
9109, section 4, subsection 9.
10 Sec. 15. WINDING DOWN PROVISIONS. The economic development
11authority shall only use moneys in the butchery innovation and
12revitalization fund created in section 15E.370 to wind down its
13administration of the butchery innovation and revitalization
14fund and program created in section 15E.370.
15 Sec. 16. TRANSITION PROVISIONS.
161. Any promulgated administrative decision, including a
17rule, regulation, form, order, or directive, by the economic
18development authority governing the butchery innovation
19and revitalization program created in section 15E.370 and
20transferred in this division of this Act to the department
21of agriculture and land stewardship, and in effect on June
2230, 2024, shall continue in full force and effect until
23amended, repealed, or supplemented by affirmative action of the
24department of agriculture and land stewardship.
252. The terms or conditions of any financial assistance
26awarded, or contract entered into, as of June 30, 2024, by
27the economic development authority governing the butchery
28innovation and revitalization program created in section
2915E.370 and transferred in this division of this Act to the
30department of agriculture and land stewardship, and in effect
31on June 30, 2024, shall continue in full force and effect
32pursuant to the terms of the award or contract.
333. Any legal action, including an administrative hearing,
34cause of action, or statute of limitation relating to the
35economic development authority governing the butchery
-11-1innovation and revitalization program created in section
215E.370 and transferred to the department of agriculture and
3land stewardship, and in effect on June 30, 2024, shall not
4be affected as a result of the transfer, except that the
5department shall be regarded as the authority’s successor in
6interest.
7 Sec. 17. CODE EDITOR DIRECTIVE.
81. The Code editor is directed to make the following
9transfers:
10a. Section 15E.370 to 187.311.
11b. Section 159.28 to 187.301.
12c. Section 159.29 to 187.302.
13d. Section 159.30 to 187.303.
14e. Section 159.31 to 187.201.
15f. Section 159.31A to 187.313.
162. The Code editor shall correct internal references in the
17Code and in any enacted legislation as necessary due to the
18enactment of this section.
19 Sec. 18. DIRECTIONS TO CODE EDITOR — SUBCHAPTERS AND
20PARTS. The Code editor is directed to divide the provisions
21of chapter 187, as amended, enacted, or transferred in this
22division of this Act, into subchapters and parts as follows:
231. Subchapter I, including sections 187.101 through
24187.103.
252. Subchapter II, including section 187.201.
263. Subchapter III, as follows:
27a. Part 1, including sections 187.301 through 187.303.
28b. Part 2, including sections 187.311 and 187.313.
29c. Part 3, including section 187.321.
30 Sec. 19. EFFECTIVE DATE.
311. Except as provided in subsection 2, this division of this
32Act takes effect July 1, 2024.
332. The following sections of this division of this Act,
34being deemed of immediate importance, take effect upon
35enactment:
-12- 1a. The section that provides for the transfer of moneys.
2b. The section that provides for the transition of
3administrative decisions, financial assistance or contracts, or
4legal action.
5c. The section that provides for the winding down of the
6butchery innovation and revitalization fund and program created
7in section 15E.370.
8DIVISION III
9COMMERCIAL ESTABLISHMENTS
10 Sec. 20. Section 162.2, subsection 8, Code 2024, is amended
11to read as follows:
128. “Commercial breeder” means a person, engaged in the
13business of breeding dogs or cats, who sells, exchanges, or
14leases dogs or cats in return for consideration, or who offers
15to do so, whether or not the animals are raised, trained,
16groomed, or boarded by the person. A person who owns or
17harbors three or fewer breeding males or females is not a
18commercial breeder. However, a person who breeds any number
19of breeding male or female greyhounds for the purposes of
20using them for pari-mutuel wagering at a racetrack as provided
21in chapter 99D shall be considered a commercial breeder
22irrespective of whether the person sells, leases, or exchanges
23the greyhounds for consideration or offers to do so.
24 Sec. 21. Section 162.2B, subsection 1, paragraph b, Code
252024, is amended to read as follows:
26b. For the issuance or renewal of a state license or permit,
27one hundred seventy-five dollars. However, a commercial
28breeder who owns, keeps, breeds, or transports a greyhound dog
29for pari-mutuel wagering at a racetrack as provided in chapter
3099D shall pay a different fee for the issuance or renewal of a
31state license as provided in rules adopted by the department.
32 Sec. 22. Section 162.10A, subsection 2, Code 2024, is
33amended to read as follows:
342. a. Except as provided in paragraph “b” or “c”, a
35commercial establishment shall comply with rules that the
-13-1department adopts to implement subsection 1. A commercial
2establishment shall be regulated under this paragraph “a”
3unless the person is a state licensee as provided in paragraph
4“b” or a permittee as provided in paragraph “c” “b”.
5b. A state licensee who is a commercial breeder owning,
6breeding, transporting, or keeping a greyhound dog for
7pari-mutuel wagering at a racetrack as provided in chapter 99D
8 may be required to comply with different rules adopted by the
9department.
10c. b. A permittee is not required to comply with rules
11that the department adopts to implement a standard of care as
12provided in subsection 1 for state licensees and registrants.
13The department may adopt rules regulating a standard of care
14for a permittee, so long as the rules are not more restrictive
15than required for a permittee under the Animal Welfare Act.
16However, the department may adopt prescriptive rules relating
17to the standard of care. Regardless of whether the department
18adopts such rules, a permittee meets the standard of care
19required in subsection 1 if it voluntarily complies with rules
20applicable to state licensees or registrants. A finding by
21the United States department of agriculture that a permittee
22complies with the Animal Welfare Act is not conclusive when
23determining that the permittee provides a standard of care
24required in subsection 1.
25 Sec. 23. Section 717B.3, subsection 2, paragraph a,
26subparagraph (2), subparagraph divisions (a) and (b), Code
272024, are amended to read as follows:
28(a) A state licensee or registrant operating pursuant to
29section 162.10A, subsection 2, paragraph “a” or “b”.
30(b) A permittee operating pursuant to section 162.10A,
31subsection 2, paragraph “c” “b”.
32DIVISION IV
33GRADE “A” MILK
34 Sec. 24. Section 192.101A, Code 2024, is amended by adding
35the following new subsections:
-14-1 NEW SUBSECTION. 1A. “Department” means the department of
2agriculture and land stewardship.
3 NEW SUBSECTION. 5. “Secretary” means the secretary of
4agriculture.
5 Sec. 25. Section 192.109, Code 2024, is amended to read as
6follows:
7192.109 Certification of grade “A” label.
8The department of agriculture and land stewardship shall
9annually biennially conduct a survey and based on that survey
10 certify all milk labeled grade “A” pasteurized and grade “A”
11raw milk for pasteurization, and, in. In the event that a
12survey shows the requirements for production, processing, and
13distribution for such grade are not being complied with, the
14 that fact thereof shall be certified by the department to the
15secretary of agriculture who shall proceed with the provisions
16of section 192.107 for suspending the permit of the violator or
17who, if the secretary did not issue such permit, shall withdraw
18the grade “A” declared on the label.
19 Sec. 26. Section 192.111, subsection 1, paragraph a,
20subparagraph (5), Code 2024, is amended to read as follows:
21(5) A milk grader which must obtain a milk grader permit and
22pay a license permit fee not greater than twenty dollars.
23 Sec. 27. Section 192.116, Code 2024, is amended to read as
24follows:
25192.116 Bacteriologists.
26The department of agriculture and land stewardship may
27employ dairy specialists or bacteriologists who shall devote
28their full time to the improvement of sanitation in the
29production, processing, and marketing of dairy products.
30Said The dairy specialists and bacteriologists shall have
31qualifications as to education and experience and such other
32requirements as the secretary may require.
33 Sec. 28. Section 192.118, subsection 1, Code 2024, is
34amended to read as follows:
351. To ensure uniformity in the tests and reporting, an
-15-1employee certified by the United States public health service
2of the bacteriological laboratory of the department shall
3annually certify, in accordance with rules adopted by the
4department incorporating or incorporating by reference the
5federal publication entitled “Evaluation of Milk Laboratories”,
6all laboratories doing work in the sanitary quality of
7milk and dairy products for public report. The approval by
8the department shall be based on the evaluation of these
9laboratories as to personnel training, laboratory methods
10used, and reporting. The results on tests made by approved
11laboratories shall be reported to the department on request,
12on forms prescribed by the secretary of agriculture, and such
13reports may be used by the department.
14DIVISION V
15FERTILIZERS AND SOIL CONDITIONERS
16 Sec. 29. Section 200.3, subsection 29, Code 2024, is amended
17to read as follows:
1829. The term “unmanipulated manures” means any substances
19composed primarily of excreta, plant remains, or mixtures of
20such substances which have not been processed in any manner
21other than dewatering.
22 Sec. 30. EFFECTIVE DATE. This division of this Act, being
23deemed of immediate importance, takes effect upon enactment.
24EXPLANATION
25The inclusion of this explanation does not constitute agreement with
26the explanation’s substance by the members of the general assembly.
27GENERAL. This bill provides for the administration of
28a number of programs and regulations by the department of
29agriculture and land stewardship (DALS). Specifically,
30the bill addresses the promotion of the native horse racing
31industry by providing for the qualification of Iowa-foaled
32horse breeds; agricultural marketing, by revising a number
33of existing programs such as the choose Iowa promotional
34program and choose Iowa fund, the butchery innovation and
35revitalization fund and program, the dairy innovation program
-16-1and fund, and the value-added agricultural grant program; the
2regulation of commercial establishments that keep certain
3nonagricultural animals for commercial purposes, by eliminating
4special requirements related to greyhound racing; and the
5regulation of permittees authorized to engage in the handling
6of grade “A” milk and related dairy products.
7IOWA-FOALED HORSES. DALS regulates the status and care
8of race horses involved in pari-mutual wagering conducted
9by persons licensed by the racing and gaming commission to
10operate racetracks and manage associated purses. There are
11three breeds of horses involved in such racing, including
12thoroughbred horses, quarter horses, and standardbred horses.
13For at least one race of each racing day, either a race must
14be limited to Iowa-foaled horses or alternatively Iowa-foaled
15horses must be given a weight advantage (Code section 99D.22).
16At least 20 percent of all net purse moneys distributed to
17each breed must be awarded in the form of Iowa breeder awards
18or purse supplements to Iowa breeders. One criteria used to
19determine a foal’s status as Iowa bred occurs in cases in which
20the foal’s brood mare was bred by a stallion not recognized
21by DALS as an Iowa registered stallion and was not bred back
22to an Iowa registered stallion. In that case, the brood mare
23must have continuous Iowa residency from December 31 until the
24foal is inspected. The bill provides that for thoroughbred
25horses that beginning date is moved back to December 15, and
26for quarter horses and standardbred horses that beginning date
27is moved forward to January 31.
28AGRICULTURAL MARKETING — CHOOSE IOWA PROMOTIONAL PROGRAM
29AND CHOOSE IOWA PROMOTIONAL FUND. In 2022, the general
30assembly established the choose Iowa promotional program
31(choose Iowa program) and choose Iowa fund administered by
32DALS (2022 Iowa Acts, chapter 1152). The stated purpose of
33the choose Iowa program and fund is to provide consumers a
34choice to purchase a food item originating as an agricultural
35commodity (commodity) produced on an Iowa farm or a food
-17-1item processed in Iowa using the commodity as an ingredient
2(Code sections 159.26 through 159.31). As part of the choose
3Iowa program, DALS may establish a choose Iowa logo (logo)
4and register the logo for legal protection with the state or
5the United States (e.g., by trademark or copyright). DALS
6may also enter into a licensing agreement with a person who
7applies to use the logo when selling a food item on a retail
8basis. A choose Iowa fund was established to finance the
9program. The fund includes fees paid by licensees and any
10moneys appropriated by the general assembly. The bill uses
11the term “product” to describe both raw and processed items
12(i.e., moveable goods) that may be sold at retail using the
13logo. It expands the program to include horticulture items (a
14nursery, floral, or greenhouse plant) and natural fiber items
15(e.g., wool). In all cases, the product must be a commodity
16produced on an Iowa farm, a commodity produced on an Iowa farm
17and processed in this state, or a commodity produced on an Iowa
18farm and used as a component in a product processed in this
19state. The bill changes the fund’s name to the choose Iowa
20promotional fund.
21AGRICULTURAL MARKETING — BUTCHERY AND DAIRY INNOVATION
22FUNDS AND PROGRAMS. In 2021, the general assembly created
23a butchery innovation and revitalization fund and program
24(2021 Iowa Acts, chapter 175) administered by the economic
25development authority (IEDA) under Code section 15E.370. Its
26purpose is to provide financial assistance to small-scale meat
27processing businesses and locker plants. In 2023, the general
28assembly created a dairy innovation fund and program (2023 Iowa
29Acts, chapter 101) administered by DALS under Code section
30159.31A. Its purpose is to provide financial assistance to
31small-scale businesses engaged in dairy processing. Both
32the funds and programs share a number of common provisions.
33Each provide financing to an eligible business in the form
34of a grant, low-interest loan, or forgivable loan, and each
35provide similar criteria for participation, including a limit
-18-1on the number of individuals that may be employed by the
2business. The bill eliminates both the butchery innovation and
3revitalization fund and dairy innovation fund. It provides
4that DALS rather than IEDA will administer the butchery
5innovation and revitalization program. It also changes the
6name of the dairy innovation program to the dairy innovation
7and revitalization program.
8AGRICULTURAL MARKETING — VALUE-ADDED AGRICULTURAL GRANT
9PROGRAM. The bill establishes the value-added agricultural
10grant program. The purpose of the program is to support
11projects and services that add value to agricultural
12commodities produced on Iowa farms (e.g., by processing). The
13program has been enacted and supported in recent DALS general
14appropriations Acts but not codified (see 2021 Iowa Acts,
15chapter 143, section 12; 2022 Iowa Acts, chapter 1147, section
1612; and 2023 Iowa Acts, chapter 109, section 4).
17AGRICULTURAL MARKETING — CONSOLIDATION OF FUNDS AND
18PROGRAMS. The bill consolidates a number of agricultural
19marketing funds and programs in Code chapters 15E and 159
20under new Code chapter 187 administered by DALS. The new
21Code chapter is divided into three subchapters. Subchapter
22I provides three new Code sections, including Code section
23187.101 that names the Code chapter, “Choose Iowa Act”; Code
24section 187.102 that combines definitions taken from other Code
25sections; and Code section 187.103 authorizing DALS to adopt
26rules necessary to administer the Code chapter. Subchapter II
27includes amended Code section 159.31, establishing the choose
28Iowa fund (transferred to Code section 187.201) which will
29support all of the Code chapter’s marketing programs. Finally,
30subchapter III includes three parts. Part 1 includes amended
31Code section 159.28 establishing the choose Iowa promotional
32program (transferred to Code section 187.301), Code section
33159.29 providing for the choose Iowa logo (transferred to Code
34section 187.302), and Code section 159.30 providing for license
35agreements and fees (transferred to Code section 187.303).
-19-1Part 2 includes amended Code section 15E.370 providing for the
2butchery innovation and revitalization program (transferred to
3Code section 187.311) and amended Code section 159.31A creating
4the dairy innovation and revitalization program (transferred to
5Code section 187.313. Part 3 includes new Code section 187.321
6providing for the value-added agricultural grant program. The
7bill also provides for transfer of moneys to the choose Iowa
8fund from the eliminated butchery innovation and revitalization
9fund and dairy innovation fund. The choose Iowa fund also
10includes any moneys that had been appropriated to support the
11value-added agricultural grant program. Finally, the bill
12includes provisions allowing IEDA to wind up its affairs, and
13transition provisions.
14REGULATION OF COMMERCIAL ESTABLISHMENTS. DALS regulates
15commercial establishments that keep certain nonagricultural
16animals for commercial purposes on a nonprofit or profit
17basis, including an animal shelter, pound, or research
18facility issued a certificate of registration (Code sections
19162.3, 162.4, and 162.4A); a pet shop, boarding kennel, or
20commercial kennel issued a state license (Code sections 162.5,
21162.5A, and 162.6); or a dealer, commercial breeder, or public
22auction who may elect to be either issued a state license or
23a permit. A permit is issued if the person is licensed under
24the federal Animal Welfare Act (7 U.S.C. ch.54) by the United
25States department of agriculture (Code sections 162.7, 162.8,
26and 162.9A). Code chapter 162 provides special regulations
27applicable to a greyhound dog if used for pari-mutuel wagering
28at a licensed racetrack (racing greyhound) (Code chapter 99D).
29The bill eliminates those special provisions. Currently, a
30person is regulated as a commercial breeder and is subject to
31license or permit requirements if the person breeds dogs or
32cats in exchange for payment with an exception that applies
33to a person who keeps three or fewer breeding greyhounds.
34The exception does not apply to a person who breeds racing
35greyhounds (Code section 162.2). A person applying for a
-20-1state license or permit is required to pay DALS $175 with
2an exception for a person who keeps racing greyhounds (Code
3section 162.2B). A person who keeps greyhounds must be issued
4a state license and is subject to a fee established by DALS
5rule which is currently $40 (21 IAC 67.17). A commercial
6establishment is required to comply with standard of care
7requirements including providing a kept animal with adequate
8feed, adequate water, housing facilities, sanitary control,
9grooming practices, and veterinary care as required by DALS
10rule (Code section 162.10A). A state licensee who is a
11commercial breeder keeping a racing greyhound may be required
12to comply with different rules adopted by the department.
13GRADE “A” MILK REGULATION. Iowa has adopted by reference
14the model “Grade ‘A’ Pasteurized Milk Ordinance” as part of
15its “Iowa Grade ‘A’ Milk Inspection Law” (Code chapter 192).
16The bill makes several editorial changes to improve the Code’s
17readability, including by defining the terms “department”
18as the department of agriculture and land stewardship and
19“secretary” as the secretary of agriculture, and using those
20terms consistently throughout the Code chapter. In order to
21handle raw milk for pasteurization and processing, a person
22must be issued a permit by DALS (Code section 192.107; 21
23IAC 68.2). Each year, DALS is required to conduct a survey
24of permittees to verify that the milk they handle meets
25requirements to be labeled grade “A” for pasteurization. The
26bill provides that the survey is to be conducted every other
27year. DALS may suspend or revoke a permit for a person who does
28not comply with the sanitary requirements.
29UNMANIPULATED MANURES. The bill amends a provision in Code
30chapter 200, which provides for the regulation of the sale
31of fertilizers and soil conditioners by DALS. Specifically,
32the bill amends the defined term “unmanipulated manures” which
33means any substances composed of excreta or plant remains
34that have not been processed. The bill provides that the
35term includes such substances processed by dewatering. This
-21-1provision takes effect upon enactment.
2EFFECTIVE DATES. The bill takes effect July 1, 2024,
3except for three sections that take effect upon enactment.
4The sections all relate to agricultural marketing and include
5provisions authorizing the transfer of moneys, winding down
6affairs by IEDA, and an administrative transition period.
-22-da/ns