Senate File 2410 - Introduced SENATE FILE 2410 BY COMMITTEE ON APPROPRIATIONS (SUCCESSOR TO SF 2209) (SUCCESSOR TO SSB 3052) A BILL FOR An Act relating to agriculture, by providing for the 1 administration of programs and regulations, making 2 appropriations, and including effective date provisions. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 TLSB 5372SZ (3) 90 da/ns
S.F. 2410 DIVISION I 1 IOWA-FOALED HORSES 2 Section 1. Section 99D.22, subsection 2, paragraph b, 3 subparagraph (3), Code 2024, is amended to read as follows: 4 (3) (a) Continuous For a thoroughbred foal, continuous 5 residency from December 31 15 until the foal is inspected if 6 the mare was bred by other than an Iowa registered stallion and 7 is not bred back to an Iowa registered stallion. 8 (b) For a standardbred foal or quarter horse foal, 9 continuous residency from January 31 until the foal is 10 inspected if the mare was bred by other than an Iowa registered 11 stallion and is not bred back to an Iowa registered stallion. 12 DIVISION II 13 AGRICULTURAL MARKETING 14 Sec. 2. Section 15E.370, Code 2024, is amended to read as 15 follows: 16 15E.370 Butchery innovation and revitalization fund and 17 program. 18 1. As used in this section unless the context otherwise 19 requires: 20 a. Department means the department of agriculture and land 21 stewardship. 22 b. Financial assistance means assistance provided only 23 from the funds and assets legally available to the authority 24 pursuant to this section and includes assistance in the form of 25 grants, low-interest loans, and forgivable loans. 26 c. Fund means the butchery innovation and revitalization 27 fund. 28 d. Located in means the place or places at which 29 a businesss operations are located and where at least 30 ninety-eight percent of the businesss employees work, or where 31 employees that are paid at least ninety-eight percent of the 32 businesss payroll work. 33 e. Program means the butchery innovation and 34 revitalization program. 35 -1- LSB 5372SZ (3) 90 da/ns 1/ 22
S.F. 2410 2. a. The fund is created in the state treasury under 1 the control of the authority and consists of any moneys 2 appropriated to the fund by the general assembly and any other 3 moneys available and obtained or accepted by the authority 4 for placement in the fund. The fund shall be used to award 5 financial assistance as provided under the program. The 6 authority shall use any moneys specifically appropriated for 7 purposes of this section only for the purposes of the program. 8 b. Notwithstanding section 8.33 , moneys in the fund 9 that remain unencumbered or unobligated at the close of the 10 fiscal year shall not revert but shall remain available for 11 expenditure for the purposes designated until the close of the 12 succeeding fiscal year. 13 c. The authority may use not more than five percent of 14 the moneys in the fund at the beginning of each fiscal year 15 for purposes of administrative costs, marketing, technical 16 assistance, and other program support. 17 1. A butchery innovation and revitalization program is 18 established within the department. The purpose of the program 19 is to promote the development, modernization, and expansion of 20 this states small-scale butchery industry. 21 3. 2. The authority, in consultation with In administering 22 the program, the department , shall establish and administer the 23 program for the purpose of awarding award financial assistance 24 to eligible businesses for to support projects that do one or 25 more of the following projects : 26 a. To expand Expand or refurbish an existing, or to 27 establish a new, state-inspected small-scale meat processing 28 business. 29 b. To expand Expand or refurbish an existing, or to 30 establish a new, federally inspected small-scale meat 31 processing business. 32 c. To expand Expand or refurbish an existing, or to 33 establish a new, licensed custom locker. 34 d. To expand Expand or refurbish an existing, or to 35 -2- LSB 5372SZ (3) 90 da/ns 2/ 22
S.F. 2410 establish a new, mobile slaughter unit that operates in 1 compliance with the most current mobile slaughter unit 2 compliance guide issued by the United States department of 3 agriculture food safety and inspection service. 4 e. To rent Rent buildings, refrigeration facilities, or 5 freezer facilities, or acquire equipment if necessary , to 6 expand processing capacity, including mobile slaughter or 7 refrigeration units used exclusively for meat or poultry 8 processing. 9 4. 3. The authority, in consultation with the department , 10 shall establish eligibility criteria for the program by rule . 11 The eligibility criteria must include all of the following: 12 a. The business must be located in this state. 13 b. The business must not have been subject to any regulatory 14 enforcement action related to federal, state, or local 15 environmental, worker safety, food processing, or food safety 16 laws, rules, or regulations within the last five years. 17 c. The business must only employ individuals legally 18 authorized to work in the state. 19 d. The business must not currently be in bankruptcy. 20 e. The business must employ less than seventy-five 21 full-time, nonseasonal individuals. 22 5. 4. A An eligible business seeking financial assistance 23 under this section shall make application to the authority 24 department in the manner and on forms prescribed by the 25 authority by rule department . 26 6. 5. Applications for financial assistance under this 27 section shall be accepted during one or more annual application 28 periods to be determined by the authority by rule established 29 by the department . Upon reviewing and scoring all applications 30 that are received during an application period, and subject to 31 funding the availability of moneys , the authority department 32 may , in consultation with the department, award financial 33 assistance to eligible businesses. A financial assistance 34 award shall not exceed the amount of eligible project costs 35 -3- LSB 5372SZ (3) 90 da/ns 3/ 22
S.F. 2410 included in the eligible businesss application. Priority 1 shall be given to an eligible businesses whose business 2 describing a proposed projects project under subsection 3 will 3 2 that is most likely to do any one or more of the following: 4 a. Create new jobs. 5 b. Create or expand opportunities for local small-scale 6 farmers to market processed meat under private labels. 7 c. Provide greater flexibility or convenience for local 8 small-scale farmers to have animals processed. 9 7. 6. A An eligible business that is awarded financial 10 assistance under this section may apply for financial 11 assistance under other programs administered by the authority 12 department . 13 8. The authority shall, in consultation with the 14 department, adopt rules pursuant to chapter 17A to administer 15 this section . 16 Sec. 3. Section 159.20, subsection 2, Code 2024, is amended 17 to read as follows: 18 2. The department shall establish and administer a 19 choose Iowa promotional program as provided in part 2 of 20 this subchapter , in order to provide consumers a choice in 21 programs that advance the purchasing food items of agricultural 22 commodities produced on Iowa farms and Iowa products that 23 originate as an agricultural commodity commodities produced on 24 Iowa farms under this title, including chapter 187 . 25 Sec. 4. Section 159.20, subsection 3, unnumbered paragraph 26 1, Code 2024, is amended to read as follows: 27 As used in this subchapter section : 28 Sec. 5. Section 159.28, Code 2024, is amended to read as 29 follows: 30 159.28 Choose Iowa promotional program. 31 1. The department shall establish and administer a choose 32 Iowa promotional program to advertise for retail sale on a 33 retail basis a food item that originates as an agricultural 34 commodity produced on an Iowa farm, and an Iowa product that 35 -4- LSB 5372SZ (3) 90 da/ns 4/ 22
S.F. 2410 may include any of the following: 1 a. An agricultural commodity produced on an Iowa farm , 2 except that it may be prepared for sale by washing or packaging 3 in this state. 4 b. A product, if it is An agricultural commodity processed 5 in this state and any of its ingredients , if its components 6 originate as an agricultural commodity produced on an Iowa 7 farm. 8 2. a. The department may adopt rules further defining an 9 Iowa farm , Iowa agricultural commodity, and Iowa product; and 10 describing how an Iowa agricultural commodity originates on an 11 Iowa farm. 12 b. The department may adopt rules providing for the 13 acceptable use of ingredients originating a component that 14 originates from an agricultural commodities commodity not 15 produced on an Iowa farms farm . In adopting the rules, the 16 department may consider whether the ingredient component is 17 an incidental additive or other component that the department 18 determines is or insignificant part of an Iowa product . 19 Sec. 6. Section 159.29, subsections 1 and 5, Code 2024, are 20 amended to read as follows: 21 1. As part of the choose Iowa promotional program, the 22 department may establish a choose Iowa logo to identify a food 23 item originating as an agricultural commodity produced on an 24 Iowa farm an Iowa product . 25 5. The use of a choose Iowa logo does not do any of the 26 following: 27 a. Provide an express or implied guarantee or warranty 28 concerning the safety, fitness, merchantability, or use of a 29 food item product . 30 b. Supersede, revise, or replace a state or federal labeling 31 requirement, including but not limited to a provision in the 32 federal Fair Packaging and Labeling Act, 15 U.S.C. 1451 et 33 seq. 34 c. Indicate the grade, specification, standard, or value of 35 -5- LSB 5372SZ (3) 90 da/ns 5/ 22
S.F. 2410 any food item agricultural commodity, component, or product . 1 Sec. 7. Section 159.31, subsections 1, 2, and 3, Code 2024, 2 are amended to read as follows: 3 1. A choose Iowa fund is established created in the state 4 treasury under the management and control of the department. 5 2. The fund shall include moneys collected as fees by 6 the department as provided in section 159.30 187.303 , moneys 7 appropriated by the general assembly, and other moneys 8 available to and obtained or accepted by the department, 9 including moneys from public or private sources. 10 3. Moneys in the fund are appropriated to the department 11 and shall be used exclusively to carry out the provisions of 12 this part administer the programs created in this subchapter 13 as determined and directed by the department, and shall not 14 require further special authorization by the general assembly. 15 Sec. 8. Section 159.31A, Code 2024, is amended to read as 16 follows: 17 159.31A Dairy innovation fund and revitalization program. 18 1. As used in this section unless the context otherwise 19 requires: 20 a. Financial assistance means assistance provided only 21 from the moneys and assets legally available to the department 22 pursuant to this section and includes assistance in the form of 23 grants, low-interest loans, and forgivable loans. 24 b. Fund means the dairy innovation fund. 25 c. Located in means the place or places at which 26 a businesss operations are located and where at least 27 ninety-eight percent of the businesss employees work, or where 28 employees that are paid at least ninety-eight percent of the 29 businesss payroll work. 30 d. Program means the dairy innovation program. 31 2. a. The fund is created in the state treasury under 32 the control of the department and consists of any moneys 33 appropriated to the fund by the general assembly and any other 34 moneys available to or obtained or accepted by the department 35 -6- LSB 5372SZ (3) 90 da/ns 6/ 22
S.F. 2410 for placement in the fund. Moneys in the fund are appropriated 1 to the department to award financial assistance as provided 2 under the program. The department shall use any moneys 3 specifically appropriated for purposes of this section only for 4 the purposes of the program. 5 b. Notwithstanding section 8.33 , moneys in the fund 6 that remain unencumbered or unobligated at the close of the 7 fiscal year shall not revert but shall remain available for 8 expenditure for the purposes designated until the close of the 9 succeeding fiscal year. 10 1. A dairy innovation and revitalization program is created 11 within the department. The purpose of the program is to 12 promote the development, modernization, and expansion of this 13 states dairy industry. 14 3. 2. The In administering the program, the department 15 shall establish and administer the program for the purpose of 16 awarding award financial assistance to eligible businesses 17 engaged in to support projects that do one or more of the 18 following: 19 a. Expand or refurbish existing milk plants or establish a 20 new milk plant, operating pursuant to a permit issued pursuant 21 to section 192.111 or 194.3A . 22 b. Expand or refurbish existing mobile dairy processing 23 units, or establish new mobile dairy processing units. 24 c. Rent buildings, refrigeration facilities, or freezer 25 facilities, or equipment necessary to expand dairy processing 26 capacity, including mobile dairy or refrigeration units used 27 exclusively for dairy processing. 28 d. Incorporate methods and technologies that reduce farm 29 labor associated with milk production and storage, including 30 but not limited to the use of robotics and processes or systems 31 that operate using computerized equipment or machinery. 32 4. 3. The department shall establish eligibility criteria 33 for the program by rule . The eligibility criteria must include 34 all of the following: 35 -7- LSB 5372SZ (3) 90 da/ns 7/ 22
S.F. 2410 a. The business must be located in this state. 1 b. The business must not have been subject to any regulatory 2 enforcement action related to federal, state, or local 3 environmental, worker safety, food processing, or food safety 4 laws, rules, or regulations within the last five years. 5 c. The business must only employ individuals legally 6 authorized to work in this state. 7 d. The business must not currently be in bankruptcy. 8 e. The business must employ less than fifty individuals. 9 5. 4. A An eligible business seeking financial assistance 10 under this section shall make application to the department in 11 the manner and on forms prescribed by the department by rule . 12 6. 5. Applications for financial assistance under this 13 section shall be accepted during one or more annual application 14 periods to be determined established by the department by 15 rule . Upon reviewing and scoring all applications that are 16 received during an application period, and subject to funding 17 the availability of moneys , the department may award financial 18 assistance to eligible businesses. A financial assistance 19 award shall not exceed the amount of eligible project costs 20 included in the eligible businesss application. Priority 21 shall be given to eligible businesses whose proposed project 22 or projects under subsection 3 will 2 are most likely to do any 23 one or more of the following: 24 a. Create new jobs. 25 b. Create or expand opportunities for local small-scale milk 26 producers to market pasteurized milk and milk products under 27 private labels. 28 c. Provide greater flexibility or convenience for local 29 small-scale farmers to have milk processed. 30 d. Reduce labor associated with the on-farm production and 31 storage of milk. 32 7. 6. A An eligible business that is awarded financial 33 assistance under this section may apply for financial 34 assistance under other programs administered by the authority 35 -8- LSB 5372SZ (3) 90 da/ns 8/ 22
S.F. 2410 department . 1 8. The department shall adopt rules pursuant to chapter 17A 2 to administer this section . 3 Sec. 9. NEW SECTION . 187.101 Short title. 4 This chapter shall be known and may be cited as the Choose 5 Iowa Act . 6 Sec. 10. NEW SECTION . 187.102 Definitions. 7 As used in this chapter, unless the context otherwise 8 requires: 9 1. Agricultural commodity means an animal or plant, or raw 10 material originating from an animal or plant. 11 2. Component means an agricultural commodity that is 12 combined to form a product during processing. 13 3. Department means the department of agriculture and land 14 stewardship. 15 4. Farm means land and associated structures used to 16 produce an agricultural commodity. 17 5. a. Financial assistance means support provided by the 18 department to an eligible business under this chapter from 19 moneys or other assets legally available to the department. 20 b. Financial assistance includes any form of grant, 21 low-interest loan, or forgivable loan. 22 6. Food item means an agricultural commodity, or an item 23 processed from an agricultural commodity, that is fit for human 24 consumption. 25 7. Fund means the choose Iowa fund created in section 26 187.201. 27 8. Horticulture item means any of the following: 28 a. A nursery, floral, or greenhouse plant. 29 b. A product processed from a nursery, floral, or greenhouse 30 plant, including a seed, rooting, cutting, tissue culture, 31 seedling, or other propagation material. 32 9. Located in means the place or places at which 33 a businesss operations are located and where at least 34 ninety-eight percent of the businesss employees work, or where 35 -9- LSB 5372SZ (3) 90 da/ns 9/ 22
S.F. 2410 employees that are paid at least ninety-eight percent of the 1 businesss payroll work. 2 10. Natural fiber item means fiber originating from 3 an agricultural commodity for use in processing, including 4 manufacturing into a textile, apparel, or other similar 5 product. 6 11. Process means to prepare a product that includes an 7 agricultural commodity alone or as a component. 8 12. a. Product means an agricultural commodity that 9 in its raw or processed state is moveable at the time of its 10 retail sale. 11 b. Product includes but is not limited to a food item, 12 horticulture item, or natural fiber item. 13 Sec. 11. NEW SECTION . 187.103 Administration. 14 The department shall adopt all rules under chapter 17A as it 15 determines necessary or desirable to administer this chapter. 16 Sec. 12. NEW SECTION . 187.321 Value-added agricultural 17 grant program. 18 A value-added agricultural grant program is created within 19 the department. The purpose of the program is to identify, 20 evaluate, and support projects and services that add value to 21 agricultural commodities produced on Iowa farms, including by 22 supporting new technologies and marketing strategies. 23 Sec. 13. REPEAL. Sections 159.26 and 159.27, Code 2024, 24 are repealed. 25 Sec. 14. TRANSFER OF MONEYS. 26 1. Not later than June 30, 2024, the unencumbered or 27 unobligated balances in all of the following funds shall be 28 transferred to the choose Iowa fund created in section 159.31 29 as follows: 30 a. (1) The butchery innovation and revitalization fund 31 created in section 15E.370. 32 (2) The economic development authority shall retain any 33 encumbered or obligated moneys in the fund to wind down the 34 authoritys administration of the butchery innovation and 35 -10- LSB 5372SZ (3) 90 da/ns 10/ 22
S.F. 2410 revitalization program. 1 b. The dairy innovation fund created in section 159.31A. 2 2. Not later than June 30, 2024, any moneys appropriated 3 to the department of agriculture and land stewardship that the 4 department has not expended as required to support a value 5 added agriculture grant program shall be transferred to the 6 choose Iowa fund, including moneys appropriated in 2022 Iowa 7 Acts, chapter 1147, section 12, and 2023 Iowa Acts, chapter 8 109, section 4, subsection 9. 9 Sec. 15. WINDING DOWN PROVISIONS. The economic development 10 authority shall only use moneys in the butchery innovation and 11 revitalization fund created in section 15E.370 to wind down its 12 administration of the butchery innovation and revitalization 13 fund and program created in section 15E.370. 14 Sec. 16. TRANSITION PROVISIONS. 15 1. Any promulgated administrative decision, including a 16 rule, regulation, form, order, or directive, by the economic 17 development authority governing the butchery innovation 18 and revitalization program created in section 15E.370 and 19 transferred in this division of this Act to the department 20 of agriculture and land stewardship, and in effect on June 21 30, 2024, shall continue in full force and effect until 22 amended, repealed, or supplemented by affirmative action of the 23 department of agriculture and land stewardship. 24 2. The terms or conditions of any financial assistance 25 awarded, or contract entered into, as of June 30, 2024, by 26 the economic development authority governing the butchery 27 innovation and revitalization program created in section 28 15E.370 and transferred in this division of this Act to the 29 department of agriculture and land stewardship, and in effect 30 on June 30, 2024, shall continue in full force and effect 31 pursuant to the terms of the award or contract. 32 3. Any legal action, including an administrative hearing, 33 cause of action, or statute of limitation relating to the 34 economic development authority governing the butchery 35 -11- LSB 5372SZ (3) 90 da/ns 11/ 22
S.F. 2410 innovation and revitalization program created in section 1 15E.370 and transferred to the department of agriculture and 2 land stewardship, and in effect on June 30, 2024, shall not 3 be affected as a result of the transfer, except that the 4 department shall be regarded as the authoritys successor in 5 interest. 6 Sec. 17. CODE EDITOR DIRECTIVE. 7 1. The Code editor is directed to make the following 8 transfers: 9 a. Section 15E.370 to 187.311. 10 b. Section 159.28 to 187.301. 11 c. Section 159.29 to 187.302. 12 d. Section 159.30 to 187.303. 13 e. Section 159.31 to 187.201. 14 f. Section 159.31A to 187.313. 15 2. The Code editor shall correct internal references in the 16 Code and in any enacted legislation as necessary due to the 17 enactment of this section. 18 Sec. 18. DIRECTIONS TO CODE EDITOR SUBCHAPTERS AND 19 PARTS. The Code editor is directed to divide the provisions 20 of chapter 187, as amended, enacted, or transferred in this 21 division of this Act, into subchapters and parts as follows: 22 1. Subchapter I, including sections 187.101 through 23 187.103. 24 2. Subchapter II, including section 187.201. 25 3. Subchapter III, as follows: 26 a. Part 1, including sections 187.301 through 187.303. 27 b. Part 2, including sections 187.311 and 187.313. 28 c. Part 3, including section 187.321. 29 Sec. 19. EFFECTIVE DATE. 30 1. Except as provided in subsection 2, this division of this 31 Act takes effect July 1, 2024. 32 2. The following sections of this division of this Act, 33 being deemed of immediate importance, take effect upon 34 enactment: 35 -12- LSB 5372SZ (3) 90 da/ns 12/ 22
S.F. 2410 a. The section that provides for the transfer of moneys. 1 b. The section that provides for the transition of 2 administrative decisions, financial assistance or contracts, or 3 legal action. 4 c. The section that provides for the winding down of the 5 butchery innovation and revitalization fund and program created 6 in section 15E.370. 7 DIVISION III 8 COMMERCIAL ESTABLISHMENTS 9 Sec. 20. Section 162.2, subsection 8, Code 2024, is amended 10 to read as follows: 11 8. Commercial breeder means a person, engaged in the 12 business of breeding dogs or cats, who sells, exchanges, or 13 leases dogs or cats in return for consideration, or who offers 14 to do so, whether or not the animals are raised, trained, 15 groomed, or boarded by the person. A person who owns or 16 harbors three or fewer breeding males or females is not a 17 commercial breeder. However, a person who breeds any number 18 of breeding male or female greyhounds for the purposes of 19 using them for pari-mutuel wagering at a racetrack as provided 20 in chapter 99D shall be considered a commercial breeder 21 irrespective of whether the person sells, leases, or exchanges 22 the greyhounds for consideration or offers to do so. 23 Sec. 21. Section 162.2B, subsection 1, paragraph b, Code 24 2024, is amended to read as follows: 25 b. For the issuance or renewal of a state license or permit, 26 one hundred seventy-five dollars. However, a commercial 27 breeder who owns, keeps, breeds, or transports a greyhound dog 28 for pari-mutuel wagering at a racetrack as provided in chapter 29 99D shall pay a different fee for the issuance or renewal of a 30 state license as provided in rules adopted by the department. 31 Sec. 22. Section 162.10A, subsection 2, Code 2024, is 32 amended to read as follows: 33 2. a. Except as provided in paragraph b or c , a 34 commercial establishment shall comply with rules that the 35 -13- LSB 5372SZ (3) 90 da/ns 13/ 22
S.F. 2410 department adopts to implement subsection 1 . A commercial 1 establishment shall be regulated under this paragraph a 2 unless the person is a state licensee as provided in paragraph 3 b or a permittee as provided in paragraph c b . 4 b. A state licensee who is a commercial breeder owning, 5 breeding, transporting, or keeping a greyhound dog for 6 pari-mutuel wagering at a racetrack as provided in chapter 99D 7 may be required to comply with different rules adopted by the 8 department. 9 c. b. A permittee is not required to comply with rules 10 that the department adopts to implement a standard of care as 11 provided in subsection 1 for state licensees and registrants. 12 The department may adopt rules regulating a standard of care 13 for a permittee, so long as the rules are not more restrictive 14 than required for a permittee under the Animal Welfare Act. 15 However, the department may adopt prescriptive rules relating 16 to the standard of care. Regardless of whether the department 17 adopts such rules, a permittee meets the standard of care 18 required in subsection 1 if it voluntarily complies with rules 19 applicable to state licensees or registrants. A finding by 20 the United States department of agriculture that a permittee 21 complies with the Animal Welfare Act is not conclusive when 22 determining that the permittee provides a standard of care 23 required in subsection 1 . 24 Sec. 23. Section 717B.3, subsection 2, paragraph a, 25 subparagraph (2), subparagraph divisions (a) and (b), Code 26 2024, are amended to read as follows: 27 (a) A state licensee or registrant operating pursuant to 28 section 162.10A, subsection 2 , paragraph a or b . 29 (b) A permittee operating pursuant to section 162.10A, 30 subsection 2 , paragraph c b . 31 DIVISION IV 32 GRADE A MILK 33 Sec. 24. Section 192.101A, Code 2024, is amended by adding 34 the following new subsections: 35 -14- LSB 5372SZ (3) 90 da/ns 14/ 22
S.F. 2410 NEW SUBSECTION . 1A. Department means the department of 1 agriculture and land stewardship. 2 NEW SUBSECTION . 5. Secretary means the secretary of 3 agriculture. 4 Sec. 25. Section 192.109, Code 2024, is amended to read as 5 follows: 6 192.109 Certification of grade A label. 7 The department of agriculture and land stewardship shall 8 annually biennially conduct a survey and based on that survey 9 certify all milk labeled grade A pasteurized and grade A 10 raw milk for pasteurization , and, in . In the event that a 11 survey shows the requirements for production, processing, and 12 distribution for such grade are not being complied with, the 13 that fact thereof shall be certified by the department to the 14 secretary of agriculture who shall proceed with the provisions 15 of section 192.107 for suspending the permit of the violator or 16 who, if the secretary did not issue such permit, shall withdraw 17 the grade A declared on the label. 18 Sec. 26. Section 192.111, subsection 1, paragraph a, 19 subparagraph (5), Code 2024, is amended to read as follows: 20 (5) A milk grader which must obtain a milk grader permit and 21 pay a license permit fee not greater than twenty dollars. 22 Sec. 27. Section 192.116, Code 2024, is amended to read as 23 follows: 24 192.116 Bacteriologists. 25 The department of agriculture and land stewardship may 26 employ dairy specialists or bacteriologists who shall devote 27 their full time to the improvement of sanitation in the 28 production, processing , and marketing of dairy products. 29 Said The dairy specialists and bacteriologists shall have 30 qualifications as to education and experience and such other 31 requirements as the secretary may require. 32 Sec. 28. Section 192.118, subsection 1, Code 2024, is 33 amended to read as follows: 34 1. To ensure uniformity in the tests and reporting, an 35 -15- LSB 5372SZ (3) 90 da/ns 15/ 22
S.F. 2410 employee certified by the United States public health service 1 of the bacteriological laboratory of the department shall 2 annually certify, in accordance with rules adopted by the 3 department incorporating or incorporating by reference the 4 federal publication entitled Evaluation of Milk Laboratories, 5 all laboratories doing work in the sanitary quality of 6 milk and dairy products for public report. The approval by 7 the department shall be based on the evaluation of these 8 laboratories as to personnel training, laboratory methods 9 used, and reporting. The results on tests made by approved 10 laboratories shall be reported to the department on request, 11 on forms prescribed by the secretary of agriculture , and such 12 reports may be used by the department. 13 DIVISION V 14 FERTILIZERS AND SOIL CONDITIONERS 15 Sec. 29. Section 200.3, subsection 29, Code 2024, is amended 16 to read as follows: 17 29. The term unmanipulated manures means any substances 18 composed primarily of excreta, plant remains, or mixtures of 19 such substances which have not been processed in any manner 20 other than dewatering . 21 Sec. 30. EFFECTIVE DATE. This division of this Act, being 22 deemed of immediate importance, takes effect upon enactment. 23 EXPLANATION 24 The inclusion of this explanation does not constitute agreement with 25 the explanations substance by the members of the general assembly. 26 GENERAL. This bill provides for the administration of 27 a number of programs and regulations by the department of 28 agriculture and land stewardship (DALS). Specifically, 29 the bill addresses the promotion of the native horse racing 30 industry by providing for the qualification of Iowa-foaled 31 horse breeds; agricultural marketing, by revising a number 32 of existing programs such as the choose Iowa promotional 33 program and choose Iowa fund, the butchery innovation and 34 revitalization fund and program, the dairy innovation program 35 -16- LSB 5372SZ (3) 90 da/ns 16/ 22
S.F. 2410 and fund, and the value-added agricultural grant program; the 1 regulation of commercial establishments that keep certain 2 nonagricultural animals for commercial purposes, by eliminating 3 special requirements related to greyhound racing; and the 4 regulation of permittees authorized to engage in the handling 5 of grade A milk and related dairy products. 6 IOWA-FOALED HORSES. DALS regulates the status and care 7 of race horses involved in pari-mutual wagering conducted 8 by persons licensed by the racing and gaming commission to 9 operate racetracks and manage associated purses. There are 10 three breeds of horses involved in such racing, including 11 thoroughbred horses, quarter horses, and standardbred horses. 12 For at least one race of each racing day, either a race must 13 be limited to Iowa-foaled horses or alternatively Iowa-foaled 14 horses must be given a weight advantage (Code section 99D.22). 15 At least 20 percent of all net purse moneys distributed to 16 each breed must be awarded in the form of Iowa breeder awards 17 or purse supplements to Iowa breeders. One criteria used to 18 determine a foals status as Iowa bred occurs in cases in which 19 the foals brood mare was bred by a stallion not recognized 20 by DALS as an Iowa registered stallion and was not bred back 21 to an Iowa registered stallion. In that case, the brood mare 22 must have continuous Iowa residency from December 31 until the 23 foal is inspected. The bill provides that for thoroughbred 24 horses that beginning date is moved back to December 15, and 25 for quarter horses and standardbred horses that beginning date 26 is moved forward to January 31. 27 AGRICULTURAL MARKETING CHOOSE IOWA PROMOTIONAL PROGRAM 28 AND CHOOSE IOWA PROMOTIONAL FUND. In 2022, the general 29 assembly established the choose Iowa promotional program 30 (choose Iowa program) and choose Iowa fund administered by 31 DALS (2022 Iowa Acts, chapter 1152). The stated purpose of 32 the choose Iowa program and fund is to provide consumers a 33 choice to purchase a food item originating as an agricultural 34 commodity (commodity) produced on an Iowa farm or a food 35 -17- LSB 5372SZ (3) 90 da/ns 17/ 22
S.F. 2410 item processed in Iowa using the commodity as an ingredient 1 (Code sections 159.26 through 159.31). As part of the choose 2 Iowa program, DALS may establish a choose Iowa logo (logo) 3 and register the logo for legal protection with the state or 4 the United States (e.g., by trademark or copyright). DALS 5 may also enter into a licensing agreement with a person who 6 applies to use the logo when selling a food item on a retail 7 basis. A choose Iowa fund was established to finance the 8 program. The fund includes fees paid by licensees and any 9 moneys appropriated by the general assembly. The bill uses 10 the term product to describe both raw and processed items 11 (i.e., moveable goods) that may be sold at retail using the 12 logo. It expands the program to include horticulture items (a 13 nursery, floral, or greenhouse plant) and natural fiber items 14 (e.g., wool). In all cases, the product must be a commodity 15 produced on an Iowa farm, a commodity produced on an Iowa farm 16 and processed in this state, or a commodity produced on an Iowa 17 farm and used as a component in a product processed in this 18 state. The bill changes the funds name to the choose Iowa 19 promotional fund. 20 AGRICULTURAL MARKETING BUTCHERY AND DAIRY INNOVATION 21 FUNDS AND PROGRAMS. In 2021, the general assembly created 22 a butchery innovation and revitalization fund and program 23 (2021 Iowa Acts, chapter 175) administered by the economic 24 development authority (IEDA) under Code section 15E.370. Its 25 purpose is to provide financial assistance to small-scale meat 26 processing businesses and locker plants. In 2023, the general 27 assembly created a dairy innovation fund and program (2023 Iowa 28 Acts, chapter 101) administered by DALS under Code section 29 159.31A. Its purpose is to provide financial assistance to 30 small-scale businesses engaged in dairy processing. Both 31 the funds and programs share a number of common provisions. 32 Each provide financing to an eligible business in the form 33 of a grant, low-interest loan, or forgivable loan, and each 34 provide similar criteria for participation, including a limit 35 -18- LSB 5372SZ (3) 90 da/ns 18/ 22
S.F. 2410 on the number of individuals that may be employed by the 1 business. The bill eliminates both the butchery innovation and 2 revitalization fund and dairy innovation fund. It provides 3 that DALS rather than IEDA will administer the butchery 4 innovation and revitalization program. It also changes the 5 name of the dairy innovation program to the dairy innovation 6 and revitalization program. 7 AGRICULTURAL MARKETING VALUE-ADDED AGRICULTURAL GRANT 8 PROGRAM. The bill establishes the value-added agricultural 9 grant program. The purpose of the program is to support 10 projects and services that add value to agricultural 11 commodities produced on Iowa farms (e.g., by processing). The 12 program has been enacted and supported in recent DALS general 13 appropriations Acts but not codified (see 2021 Iowa Acts, 14 chapter 143, section 12; 2022 Iowa Acts, chapter 1147, section 15 12; and 2023 Iowa Acts, chapter 109, section 4). 16 AGRICULTURAL MARKETING CONSOLIDATION OF FUNDS AND 17 PROGRAMS. The bill consolidates a number of agricultural 18 marketing funds and programs in Code chapters 15E and 159 19 under new Code chapter 187 administered by DALS. The new 20 Code chapter is divided into three subchapters. Subchapter 21 I provides three new Code sections, including Code section 22 187.101 that names the Code chapter, Choose Iowa Act; Code 23 section 187.102 that combines definitions taken from other Code 24 sections; and Code section 187.103 authorizing DALS to adopt 25 rules necessary to administer the Code chapter. Subchapter II 26 includes amended Code section 159.31, establishing the choose 27 Iowa fund (transferred to Code section 187.201) which will 28 support all of the Code chapters marketing programs. Finally, 29 subchapter III includes three parts. Part 1 includes amended 30 Code section 159.28 establishing the choose Iowa promotional 31 program (transferred to Code section 187.301), Code section 32 159.29 providing for the choose Iowa logo (transferred to Code 33 section 187.302), and Code section 159.30 providing for license 34 agreements and fees (transferred to Code section 187.303). 35 -19- LSB 5372SZ (3) 90 da/ns 19/ 22
S.F. 2410 Part 2 includes amended Code section 15E.370 providing for the 1 butchery innovation and revitalization program (transferred to 2 Code section 187.311) and amended Code section 159.31A creating 3 the dairy innovation and revitalization program (transferred to 4 Code section 187.313. Part 3 includes new Code section 187.321 5 providing for the value-added agricultural grant program. The 6 bill also provides for transfer of moneys to the choose Iowa 7 fund from the eliminated butchery innovation and revitalization 8 fund and dairy innovation fund. The choose Iowa fund also 9 includes any moneys that had been appropriated to support the 10 value-added agricultural grant program. Finally, the bill 11 includes provisions allowing IEDA to wind up its affairs, and 12 transition provisions. 13 REGULATION OF COMMERCIAL ESTABLISHMENTS. DALS regulates 14 commercial establishments that keep certain nonagricultural 15 animals for commercial purposes on a nonprofit or profit 16 basis, including an animal shelter, pound, or research 17 facility issued a certificate of registration (Code sections 18 162.3, 162.4, and 162.4A); a pet shop, boarding kennel, or 19 commercial kennel issued a state license (Code sections 162.5, 20 162.5A, and 162.6); or a dealer, commercial breeder, or public 21 auction who may elect to be either issued a state license or 22 a permit. A permit is issued if the person is licensed under 23 the federal Animal Welfare Act (7 U.S.C. ch. 54) by the United 24 States department of agriculture (Code sections 162.7, 162.8, 25 and 162.9A). Code chapter 162 provides special regulations 26 applicable to a greyhound dog if used for pari-mutuel wagering 27 at a licensed racetrack (racing greyhound) (Code chapter 99D). 28 The bill eliminates those special provisions. Currently, a 29 person is regulated as a commercial breeder and is subject to 30 license or permit requirements if the person breeds dogs or 31 cats in exchange for payment with an exception that applies 32 to a person who keeps three or fewer breeding greyhounds. 33 The exception does not apply to a person who breeds racing 34 greyhounds (Code section 162.2). A person applying for a 35 -20- LSB 5372SZ (3) 90 da/ns 20/ 22
S.F. 2410 state license or permit is required to pay DALS $175 with 1 an exception for a person who keeps racing greyhounds (Code 2 section 162.2B). A person who keeps greyhounds must be issued 3 a state license and is subject to a fee established by DALS 4 rule which is currently $40 (21 IAC 67.17). A commercial 5 establishment is required to comply with standard of care 6 requirements including providing a kept animal with adequate 7 feed, adequate water, housing facilities, sanitary control, 8 grooming practices, and veterinary care as required by DALS 9 rule (Code section 162.10A). A state licensee who is a 10 commercial breeder keeping a racing greyhound may be required 11 to comply with different rules adopted by the department. 12 GRADE A MILK REGULATION. Iowa has adopted by reference 13 the model Grade A Pasteurized Milk Ordinance as part of 14 its Iowa Grade A Milk Inspection Law (Code chapter 192). 15 The bill makes several editorial changes to improve the Codes 16 readability, including by defining the terms department 17 as the department of agriculture and land stewardship and 18 secretary as the secretary of agriculture, and using those 19 terms consistently throughout the Code chapter. In order to 20 handle raw milk for pasteurization and processing, a person 21 must be issued a permit by DALS (Code section 192.107; 21 22 IAC 68.2). Each year, DALS is required to conduct a survey 23 of permittees to verify that the milk they handle meets 24 requirements to be labeled grade A for pasteurization. The 25 bill provides that the survey is to be conducted every other 26 year. DALS may suspend or revoke a permit for a person who does 27 not comply with the sanitary requirements. 28 UNMANIPULATED MANURES. The bill amends a provision in Code 29 chapter 200, which provides for the regulation of the sale 30 of fertilizers and soil conditioners by DALS. Specifically, 31 the bill amends the defined term unmanipulated manures which 32 means any substances composed of excreta or plant remains 33 that have not been processed. The bill provides that the 34 term includes such substances processed by dewatering. This 35 -21- LSB 5372SZ (3) 90 da/ns 21/ 22
S.F. 2410 provision takes effect upon enactment. 1 EFFECTIVE DATES. The bill takes effect July 1, 2024, 2 except for three sections that take effect upon enactment. 3 The sections all relate to agricultural marketing and include 4 provisions authorizing the transfer of moneys, winding down 5 affairs by IEDA, and an administrative transition period. 6 -22- LSB 5372SZ (3) 90 da/ns 22/ 22