Iowa 2023-2024 Regular Session

Iowa Senate Bill SF311 Latest Draft

Bill / Introduced Version Filed 02/15/2023

                            Senate File 311 - Introduced   SENATE FILE 311   BY COMMITTEE ON AGRICULTURE   (SUCCESSOR TO SSB 1115)   A BILL FOR   An Act providing for programs and regulations administered 1   and enforced by the department of agriculture and land 2   stewardship, providing fees, providing for the allocation of 3   moneys, and making penalties applicable. 4   BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 5   TLSB 1218SV (2) 90   da/ns  

  S.F. 311   DIVISION I 1   REGULATION OF COMMERCIAL ESTABLISHMENTS 2   Section 1. Section 162.2, subsection 19, Code 2023, is 3   amended by striking the subsection and inserting in lieu 4   thereof the following: 5   19. Pet shop means a facility where vertebrate animals, 6   excluding fish, not born and reared on the facilitys premises 7   are bought, sold, exchanged, or offered for sale or exchange to 8   the public, at retail. Pet shop does not include a facility 9   if one of the following applies: 10   a. The facility receives less than one thousand dollars from 11   the sale or exchange of vertebrate animals, excluding fish, 12   during a twelve-month period. 13   b. The facility sells or exchanges less than twelve 14   vertebrate animals, excluding fish, during a twelve-month 15   period. 16   Sec. 2. Section 162.2A, subsection 3, paragraph d, Code 17   2023, is amended to read as follows: 18   d. The persons   An official government-issued photo 19   identification number of the person . Notwithstanding chapter 20   22   , the department shall keep the persons tax identification 21   number confidential except for purposes of tax administration 22   by the department of revenue, including as provided in   section 23   421.18 . 24   DIVISION II 25   GRAIN REGULATION 26   PART A 27   GRAIN DEALERS   28   Sec. 3. Section 203.1, Code 2023, is amended by adding the 29   following new subsection: 30   NEW SUBSECTION   . 12A. Scale weight ticket means the same 31   as defined in section 203C.1.   32   Sec. 4. Section 203.5, subsection 8, paragraph a, Code 2023, 33   is amended to read as follows: 34   a. The applicant has caused liability to the Iowa   grain 35   -1-   LSB 1218SV (2) 90   da/ns 1/ 17                 

  S.F. 311   depositors and sellers indemnity fund in regard to a license 1   issued under this chapter or chapter 203C , and the liability 2   has not been discharged, settled, or satisfied. 3   Sec. 5. Section 203.11, subsection 2, paragraph a, 4   subparagraph (3), Code 2023, is amended to read as follows: 5   (3) Uses a scale weight   ticket or credit-sale contract in 6   violation of this chapter or a requirement established by the 7   department under this chapter . 8   Sec. 6. Section 203.15, subsection 2, paragraph f, Code 9   2023, is amended to read as follows: 10   f. The duration of the credit-sale contract, which shall 11   not exceed twelve   fifteen months from the date the contract is 12   executed. 13   Sec. 7. Section 203.17, Code 2023, is amended to read as 14   follows: 15   203.17 Documents and records. 16   1. The department may adopt rules specifying the form, 17   content, use, and maintenance of documents issued by a grain 18   dealer under this chapter including but not limited to scale 19   weight   tickets, settlement sheets, daily position records, and 20   credit-sale contracts. The department may adopt rules for 21   both printed and electronic documents, including rules for 22   the transmission, receipt, authentication, and archiving of 23   electronically generated or stored documents. 24   2. All scale weight   ticket forms in the possession of a 25   grain dealer shall have been permanently and consecutively 26   numbered at the time of printing. A grain dealer shall 27   maintain an accurate record of all scale weight ticket numbers. 28   The record shall include the disposition of each numbered form, 29   whether issued, destroyed, or otherwise disposed of. 30   Sec. 8. Section 203.20, Code 2023, is amended to read as   31   follows:   32   203.20 Shrinkage adjustments  disclosures  penalties. 33   1. A person who, in connection with the receipt of 34   corn or soybeans   grain for storage, processing, or sale, 35   -2-   LSB 1218SV (2) 90   da/ns 2/ 17          

  S.F. 311   adjusts the scale weight of the grain to compensate for the 1   moisture content of the grain shall compute the amount of 2   the adjustment by multiplying the scale weight of the grain 3   by that factor which results in a rate of adjustment of one 4   and eighteen hundredths percent of weight per one percent of 5   moisture content. The use of   person who uses any rate of 6   weight adjustment for moisture content other than the one 7   prescribed by this subsection is commits a fraudulent practice 8   as defined in section 714.8   . The person shall post on the 9   business premises in a conspicuous place notice of the rate 10   of adjustment for moisture content that is   as prescribed by 11   this subsection . Failure The person who fails to make this 12   disclosure is commits a simple misdemeanor. 13   2. A person who, in connection with the receipt of grain for 14   storage, processing ,   or sale, adjusts the quantity of the grain 15   received to compensate for losses to be incurred during the 16   handling, processing, or storage of the grain shall post on the 17   business premises in a conspicuous place notice of the rate of 18   adjustment to be made for this shrinkage. Failure   The person 19   who fails to make the required this disclosure is commits a 20   simple misdemeanor. 21   3. A person who adjusts the scale weight of corn or soybeans   22   both   grain for moisture content and for handling, processing, 23   or storage losses may combine the two adjustment factors into 24   a single factor and may use this resulting factor to compute 25   the amount of weight adjustment in connection with storage, 26   processing, or sale transactions, provided that the person 27   shall post on the business premises in a conspicuous place a 28   notice that discloses the moisture shrinkage factor prescribed 29   by subsection 1 , the handling shrinkage factor to be imposed, 30   and the single factor that results from combining these 31   factors. Failure   The person who fails to make the required 32   this disclosure is commits a simple misdemeanor. 33   PART B 34   WAREHOUSE OPERATORS   35   -3-   LSB 1218SV (2) 90   da/ns 3/ 17                              

  S.F. 311   Sec. 9. Section 203C.5, subsection 2, Code 2023, is amended 1   to read as follows: 2   2. a. The department may adopt rules specifying the 3   form, content, and use of documents issued by a warehouse 4   operator under this chapter including but not limited to scale 5   weight   tickets, warehouse receipts, settlement sheets, and 6   daily position records. The department may adopt rules for 7   both printed and electronic documents, including rules for 8   the transmission, receipt, authentication, and archiving of 9   electronically generated or stored documents. 10   b. All scale weight   ticket forms and warehouse receipt 11   forms in the possession of a warehouse operator shall have been 12   permanently and consecutively numbered at the time of printing. 13   A warehouse operator shall maintain an accurate record of 14   the numbers of these documents. The record shall include 15   the disposition of each form, whether issued, destroyed, or 16   otherwise disposed of. The department may by rule require this 17   use of prenumbered forms and recording for documents other than 18   scale weight   tickets and warehouse receipts. 19   Sec. 10. Section 203C.6, subsection 8, paragraph a, Code 20   2023, is amended to read as follows: 21   a. The applicant has caused liability to the Iowa   grain 22   depositors and sellers indemnity fund through operations under 23   a license issued under this chapter or chapter 203 , and the 24   liability has not been discharged, settled, or satisfied. 25   Sec. 11. Section 203C.17, subsections 1, 2, 3, 4, and 5, 26   Code 2023, are amended to read as follows:   27   1. Any grain which has been received at any Grain deposited 28   with a licensed warehouse operator for which the actual sale 29   price is   has not been fixed and either proper documentation 30   made has not been furnished or payment has not been made shall 31   be construed to be grain held for storage within the meaning of   32   this chapter . Grain may be held considered stored grain and 33   may be retained   in open storage or placed on under warehouse 34   receipt. A warehouse receipt shall be issued for all grain 35   -4-   LSB 1218SV (2) 90   da/ns 4/ 17                         

  S.F. 311   held in open storage within one year from the date of delivery 1   to the warehouse, unless the depositor has signed a statement   2   that the depositor does not desire a warehouse receipt. A The 3   licensed warehouse operator shall issue a warehouse receipt 4   shall be issued   to the depositor upon request by the depositor. 5   The warehouse operators tariff shall apply for   to any grain 6   that is retained in open storage or placed under warehouse 7   receipt as provided in section 203C.18 . 8   2. Bulk grain deposited with a licensed warehouse operator 9   for processing, cleaning, drying, shipping for the account of 10   the depositor ,   or any other purpose shall be removed within 11   thirty days from the date of deposit or such grain shall be 12   determined as considered stored grain and the . The warehouse 13   operators tariff charges   shall apply to the bulk grain as 14   provided in section 203C.28 . 15   3. Grain received on deposited and subject to a scale weight 16   ticket which that fails to have the price fixed and properly 17   documented on the records of the licensed   warehouse operator 18   shall be construed to be   retained in open storage. 19   4. All bulk grain whether retained in open storage and 20   deposited subject to a scale weight ticket   or having been 21   placed on under warehouse receipt is covered by the grain 22   depositors and sellers indemnity fund created in   as provided in 23   chapter 203D . 24   5. Any grain which has been received at any An unlicensed 25   warehouse and for which the operator shall not retain deposited 26   bulk grain, if its actual sale price has not been fixed , and 27   payment for the bulk grain has not been made within thirty days 28   from receipt of the grain its date of deposit , unless covered 29   purchased   by a credit-sale contract , shall be construed to be 30   unlawful storage within the meaning of this chapter . Bulk 31   grain received at any   An unlicensed warehouse for any operator 32   who retains deposited bulk gain under any other purpose 33   circumstance   must either be returned return the bulk grain to 34   the depositor , or disposed of dispose of the bulk grain by 35   -5-   LSB 1218SV (2) 90   da/ns 5/ 17                                                                   

  S.F. 311   order of the depositor , within thirty days from date of actual 1   the   deposit of the bulk grain. 2   Sec. 12. Section 203C.25, Code 2023, is amended to read as 3   follows: 4   203C.25 Shrinkage adjustments  disclosures  penalties. 5   1. A person who, in connection with the receipt of 6   corn or soybeans grain for storage, processing, or sale, 7   adjusts the scale weight of the grain to compensate for the 8   moisture content of the grain shall compute the amount of 9   the adjustment by multiplying the scale weight of the grain 10   by that factor which results in a rate of adjustment of one 11   and eighteen hundredths percent of weight per one percent of 12   moisture content. The use of   person who uses any rate of 13   weight adjustment for moisture content other than the one 14   prescribed by this subsection is   commits a fraudulent practice 15   as defined in section 714.8 . The person shall post on the 16   business premises in a conspicuous place notice of the rate 17   of adjustment for moisture content that is   as prescribed by 18   this subsection . Failure   The person who fails to make this 19   disclosure is commits a simple misdemeanor. 20   2. A person who, in connection with the receipt of grain for 21   storage, processing ,   or sale, adjusts the quantity of the grain 22   received to compensate for losses to be incurred during the 23   handling, processing, or storage of the grain shall post on the 24   business premises in a conspicuous place notice of the rate of 25   adjustment to be made for this shrinkage. Failure   The person 26   who fails to make the required this disclosure is commits a 27   simple misdemeanor. 28   3. A person who adjusts the scale weight of corn or soybeans 29   both   grain for moisture content and for handling, processing, 30   or storage losses may combine the two adjustment factors into 31   a single factor and may use this resulting factor to compute 32   the amount of weight adjustment in connection with storage, 33   processing, or sale transactions, provided that the person 34   shall post on the business premises in a conspicuous place a 35   -6-   LSB 1218SV (2) 90   da/ns 6/ 17                             

  S.F. 311   notice that discloses the moisture shrinkage factor prescribed 1   by subsection 1 , the handling shrinkage factor to be imposed, 2   and the single factor that results from combining these 3   factors. Failure   The person who fails to make the required 4   this   disclosure is commits a simple misdemeanor. 5   Sec. 13. Section 203C.36, subsection 2, paragraph a, 6   subparagraph (3), Code 2023, is amended to read as follows: 7   (3) Uses a scale weight   ticket, warehouse receipt, or 8   other document in violation of this chapter or requirements 9   established by the department under this chapter . 10   PART C 11   INDEMNITY FUND 12   Sec. 14. Section 203D.1, Code 2023, is amended by adding the 13   following new subsection: 14   NEW SUBSECTION   . 14A. Scale weight ticket means the same 15   as defined in section 203C.1. 16   DIVISION III 17   WEIGHTS AND MEASURES 18   PART A 19   LICENSING, INSPECTIONS, AND FEES 20   Sec. 15. Section 214.2, Code 2023, is amended to read as 21   follows: 22   214.2 License. 23   1.   A person who uses or displays for use any commercial 24   weighing and measuring device , as defined in section 215.1 , 25   shall secure must be issued a license from by the department 26   for that device . The department shall issue the license after 27   inspecting the device. 28   2. a. Except as provided in paragraph b , a license issued 29   under subsection 1 shall expire on December 31 of each year.   30   b. A license issued under subsection 1 for a motor fuel pump 31   shall expire on June 30 of each year.   32   Sec. 16. Section 214.3, subsection 1, Code 2023, is amended 33   by striking the subsection. 34   Sec. 17. Section 214.3, subsection 2, Code 2023, is amended 35   -7-   LSB 1218SV (2) 90   da/ns 7/ 17                                 

  S.F. 311   to read as follows: 1   2. The   A license inspection fee is imposed on a person 2   who uses or displays for use a commercial weighing and 3   measuring device . The license fee is due the day the device 4   is placed into service   department issues the license . A 5   license inspection fee shall be charged to the person owning   6   or operating a commercial weighing and measuring device 7   inspected The amount of the license fee shall be calculated in 8   accordance with the class or section for devices as established 9   by handbook 44 of the United States national institute of 10   standards and technology. 11   Sec. 18. Section 214.11, subsection 1, Code 2023, is amended 12   to read as follows: 13   1. The department shall provide for annual   biennial 14   inspections of all motor fuel pumps, including but not limited 15   to motor fuel blender pumps, licensed under this chapter . 16   Inspections shall be for the purpose of determining the 17   accuracy and correctness of motor fuel pumps. For that purpose 18   the departments inspectors may enter upon the premises of any   19   a wholesale dealer or a retail dealer motor fuel site . 20   Sec. 19. Section 215.2, Code 2023, is amended to read as 21   follows: 22   215.2 Special inspection tests    request  fees. 23   1. The owner or servicer of a commercial weighing and 24   measuring device may request the department conduct a special 25   inspection test of the device to determine its accuracy and 26   correctness. 27   2. The fee for special tests, including but not limited to, 28   using state inspection equipment, for the calibration, testing, 29   certification, or repair   conducting a special inspection test 30   of a commercial weighing and measuring device shall be paid 31   by the owner or   servicer or person requesting the special 32   inspection test in accordance with the following schedule: 33   1.   a. Class S, scales, seventy-five dollars per hour. 34   2. b. Class M, meters, fifty-two dollars and fifty cents 35   -8-   LSB 1218SV (2) 90   da/ns 8/ 17                                           

  S.F. 311   per hour. 1   Sec. 20. REPEAL. Section 215.12, Code 2023, is repealed. 2   PART B 3   MOTOR FUEL STANDARDS AND CLASSIFICATIONS 4   Sec. 21. Section 159A.6, subsection 1, paragraph c, Code 5   2023, is amended to read as follows: 6   c. Develop standards for decals required pursuant to 7   section 214A.16   214A.21A , which shall be designed to promote 8   the advantages of using renewable fuels. The standards may be 9   incorporated within a model decal adopted by the office. 10   Sec. 22. Section 214A.1, subsection 2, Code 2023, is amended 11   to read as follows: 12   2. ASTM international means a nonprofit organization,   13   previously named   the American society for testing and materials 14   international. 15   Sec. 23. Section 214A.1, Code 2023, is amended by adding the 16   following new subsections: 17   NEW SUBSECTION   . 9A. Coprocess means to simultaneously 18   process a renewable biomass or a biointermediate with a fossil 19   fuel or other nonrenewable feedstock in the same unit or units 20   to produce a fuel that is partially derived from a renewable 21   biomass or biointermediate. 22   NEW SUBSECTION   . 33A. a. Renewable diesel means a motor 23   fuel for use in an internal combustion engine and ignited by 24   pressure without the presence of an electric spark, which 25   is produced from nonfossil renewable resources, including 26   agricultural plants, animal fats, residue, and waste generated 27   from the production, processing, and marketing of agricultural 28   products, and other renewable resources. 29   b. Renewable diesel must meet the standards provided in 30   section 214A.2.   31   c. Renewable diesel does not include any of the following: 32   (1) Biodiesel. 33   (2) A fuel that has been coprocessed. 34   NEW SUBSECTION   . 33B. Renewable diesel blended fuel means 35   -9-   LSB 1218SV (2) 90   da/ns 9/ 17         

  S.F. 311   a blend of renewable diesel with petroleum-based diesel fuel, 1   biodiesel, or a combination of petroleum-based diesel fuel and 2   biodiesel, which meets the standards, including separately 3   the standard for its renewable diesel component, provided in 4   section 214A.2. 5   Sec. 24. Section 214A.2, subsection 4, Code 2023, is amended 6   by adding the following new paragraph: 7   NEW PARAGRAPH   . c. (1) If the motor fuel is advertised 8   for sale or sold as renewable diesel or renewable diesel 9   blended fuel, the motor fuel must meet departmental standards 10   based in part or in whole on specifications adopted by ASTM 11   international for renewable diesel or renewable diesel blended 12   motor fuel, to every extent applicable, as determined by the 13   department subject to subparagraph (2). 14   (2) Renewable diesel must at least meet departmental 15   standards based in whole or in part on ASTM international 16   specification D975, or a successor ASTM international 17   specification, established by rule. The specification shall 18   apply to renewable diesel before it leaves its place of 19   manufacture. 20   Sec. 25. Section 214A.2, subsection 5, Code 2023, is amended 21   by adding the following new paragraph: 22   NEW PARAGRAPH   . d. (1) Renewable diesel shall be classified 23   RD-100. 24   (2) Renewable diesel blended fuel shall be classified RD-xx 25   where xx is the volume percent of renewable diesel. 26   Sec. 26. Section 214A.2B, Code 2023, is amended to read as   27   follows: 28   214A.2B Laboratory for motor fuel and biofuels   fuels, 29   biofuels, and renewable fuels   . 30   A laboratory for motor fuel and biofuels is established at a 31   community college which is engaged in biofuels testing on July   32   1, 2007, and which testing includes but is not limited to The 33   Iowa central fuel testing laboratory at Iowa central community   34   college shall test motor fuels, biofuels, and renewable fuels, 35   -10-   LSB 1218SV (2) 90   da/ns 10/ 17             

  S.F. 311   including but not limited to B-20 biodiesel fuel testing for 1   use by   motor trucks and the ability of biofuels to meet ASTM 2   international standards . The laboratory shall conduct the 3   testing of motor fuel fuels sold in this state and biofuel 4   which is   biofuels blended in with motor fuel fuels in this 5   state to ensure that the motor fuel or   fuels, biofuels , and 6   renewable fuels meet the requirements departmental standards 7   in section 214A.2 . 8   PART C 9   CODE EDITOR DIRECTIVE 10   Sec. 27. CODE EDITOR DIRECTIVE. 11   1. The Code editor is directed to make the following 12   transfer: 13   Section 214A.16 to section 214A.21A. 14   2. The Code editor shall correct internal references in the 15   Code and in any enacted legislation as necessary due to the 16   enactment of this section. 17   DIVISION IV 18   WATER QUALITY 19   Sec. 28. Section 466B.43, subsection 6, Code 2023, is 20   amended to read as follows: 21   6. By October 1, 2019, and each   October 1 thereafter of 22   each year   , the division shall submit a report to the governor 23   and the general assembly itemizing expenditures, by hydrologic 24   unit code 8 watershed, under the programs , if any, during the 25   previous fiscal year , if any . 26   Sec. 29. Section 466B.44, subsection 5, Code 2023, is   27   amended to read as follows: 28   5. Notwithstanding any other provision in this section 29   to the contrary, beginning on July 1, 2018,   the division 30   may use any amount available to support the water quality 31   urban infrastructure program to instead extend   do any of the 32   following: 33   a.   Extend and support the three-year data collection of 34   in-field agricultural practices project as enacted in 2015 Iowa 35   -11-   LSB 1218SV (2) 90   da/ns 11/ 17                                    

  S.F. 311   Acts, ch. 132, 18 . 1   b.   Support water quality agriculture infrastructure programs 2   created in section 466B.43. 3   Sec. 30. Section 466B.44, subsection 7, Code 2023, is 4   amended to read as follows: 5   7. By October 1, 2019, and by October 1 of each year 6   thereafter , the division shall submit a report to the governor 7   and the general assembly itemizing expenditures under the 8   program, if any, during the previous fiscal year. 9   EXPLANATION 10   The inclusion of this explanation does not constitute agreement with 11   the explanations substance by the members of the general assembly. 12   GENERAL. This bill relates to a number of regulations 13   and programs administered and enforced by the department of 14   agriculture and land stewardship (DALS). Specifically, the 15   bill amends provisions regulating commercial establishments 16   engaged in the transfer or use of vertebrate animals (animals) 17   other than agricultural animals, including animal shelters, 18   boarding kennels, commercial breeders, commercial kennels, 19   dealers, pet shops, pounds, public auctions, and research 20   facilities (Code chapter 162). The bill regulates grain 21   transactions including by grain dealers (dealers) and warehouse 22   operators (operators) (Code chapters 203 and 203C) and the 23   indemnification of losses by sellers or depositors from the 24   grain depositors and sellers indemnity fund (Code chapter 25   203D). The bill also regulates the commercial use of weights 26   and measures, including motor fuel pumps (fuel pumps) that are 27   part of motor fuel dispensers (dispensers), and types of motor 28   fuel advertised for sale (Code chapters 214, 214A, and 215), 29   including diesel fuel for use in certain internal combustion 30   engines. Finally, the bill provides for the expenditure of 31   moneys for surface water quality initiatives (initiatives) in 32   order to assess and reduce nutrients in this states watersheds 33   (Code chapter 466B) in conformance with the Iowa nutrient 34   reduction strategy (Code section 455B.171). 35   -12-   LSB 1218SV (2) 90   da/ns 12/ 17        

  S.F. 311   COMMERCIAL ESTABLISHMENTS  REGULATION. Under current law, 1   a business classified as a pet shop is a type of establishment 2   required to be annually licensed (Code section 162.5) and pay 3   an associated fee (Code section 162.2B). A business is not 4   regulated as a pet shop if, during the prior 12-month period, 5   the business either receives less than $500 or transfers 6   less than six animals. The bill doubles the exemption 7   qualifications to less than $1,000 or less than 12 animals 8   (amended Code section 162.2). 9   A person applying to be issued an authorization for the 10   operation of any commercial establishment must provide DALS 11   the persons tax identification number. The bill eliminates 12   that requirement and instead requires the person to provide an 13   official government-issued photo identification of the person 14   (amended Code section 162.2A). 15   COMMERCIAL ESTABLISHMENTS  PENALTY. A person who operates 16   a commercial establishment in violation of authorization 17   requirements is guilty of a simple misdemeanor (Code section 18   162.13). 19   GRAIN REGULATION  BACKGROUND. As part of a grain 20   transaction, an operator issues a prenumbered scale 21   weight ticket to a depositor as evidence of stored grain. 22   Alternatively, the operator may issue a warehouse receipt as a 23   form which may be a document of title and therefore negotiable 24   (Code chapter 554, Art. 7). In order for a seller or depositor 25   to be indemnified for a loss by the fund, the dollar value of 26   a claim for transferred grain is based on either a warehouse 27   receipt or scale weight ticket (Code section 203D.6). 28   GRAIN REGULATION  TERMS. Currently, several different 29   terms are used to describe the same item. The bill changes 30   the terms to be uniform, including scale ticket to scale 31   weight ticket and Iowa grain depositors and sellers indemnity 32   fund to grain depositors and sellers indemnity fund, which 33   are both defined (amended Code sections 203.1, 203.5, 203.11, 34   203.17, 203C.5, 203C.6, 203C.17, 203C.36, and 203D.1). 35   -13-   LSB 1218SV (2) 90   da/ns 13/ 17  

  S.F. 311   GRAIN REGULATION  CREDIT-SALE CONTRACT. A buyer and 1   seller of grain may execute a credit-sale contract, also known 2   as a price-later contract, for transfer of title, in which the 3   seller delivers the grain to the buyer who pays the seller 4   a price more than 30 days later (Code section 203.1). In 5   order to engage in these transactions, a buyer who is a grain 6   dealer must maintain a class 1 license requiring a net worth 7   of at least $75,000 (Code section 203.3(4)), the parties must 8   execute a contract form meeting statutory requirements (amended 9   Code section 203.15(2)), and the grain is not considered as 10   purchased grain covered by the grain depositors and sellers 11   indemnity fund (Code section 203D.6(4)). The bill extends the 12   maximum period of a credit-sale contracts duration, requiring 13   later payment for the delivered grain, from 12 to 15 months 14   (amended Code section 203.15(2)). 15   GRAIN REGULATION  GRAIN MOISTURE CONTENT. A person 16   receiving corn or soybeans as part of a transaction involving 17   storage, processing, or sale may adjust the scale weight to 18   account for moisture content (i.e., reducing the scale weight 19   by a special factor calculated for each 1 percent of moisture 20   content). The bill provides that the adjustment applies to all 21   grain in which there are standards established by the United 22   States department of agriculture (Code sections 203.1 and 23   203C.1 and amended Code sections 203.20 and 203C.25). 24   GRAIN REGULATION  OPEN STORAGE. An operator may retain 25   delivered grain in open storage (meaning without issuing a 26   warehouse receipt or making a purchase) subject to certain 27   limitations. Grain subject to a scale weight ticket without 28   having the price fixed and documented by the operator is 29   considered to be retained in open storage. Currently, if 30   grain is retained in open storage, the operator must issue the 31   depositor a warehouse receipt within one year of the grains 32   delivery date, unless the depositor signs a statement refusing 33   it. The bill eliminates this requirement. Upon request, the 34   operator must still issue the depositor a warehouse receipt 35   -14-   LSB 1218SV (2) 90   da/ns 14/ 17  

  S.F. 311   (amended Code section 203C.17). 1   GRAIN REGULATION  PENALTIES. A person who violates Code 2   chapter 203 or 203C is guilty of a simple misdemeanor (Code 3   sections 203.11 and 203C.36). 4   WEIGHTS AND MEASURES. A person who uses or displays a 5   commercial weighing or measuring device (device) must be 6   licensed. The term of the license is 12 months. Generally, 7   the term is on a calendar year basis (January 1 to December 8   31) but for motor fuel pumps the term is on a fiscal year 9   basis (July 1 to June 30). A fee is required for the issuance 10   of the license and an inspection (license inspection fee) 11   first due when the device is placed into service. DALS is 12   expressly required to inspect motor fuel pumps each year. The 13   bill provides that the fee is for the issuance of the license 14   rather than the inspection, the license fee is due when the 15   license is issued, and that DALS must inspect motor fuel pumps 16   on a biennial basis (amended Code sections 214.2, 214.3, and 17   214.11). The bill also eliminates a requirement that persons 18   engaged in repairing scales must file a bond with the state 19   (repealed Code section 215.12). 20   WEIGHTS AND MEASURES  MOTOR FUEL STANDARDS AND 21   CLASSIFICATIONS. Motor fuels include fossil (petroleum) based 22   gasoline and diesel fuel as well as certain biofuel components 23   derived from renewable (nonpetroleum) resources such as ethanol 24   classified as E-100 and biodiesel comprised of monoalkyl esters 25   of long-chain fatty acids and classified as B-100. Both types 26   of substances are used to produce renewable fuels (e.g., E-15 27   or B-5) subject to separate departmental standards based on 28   ASTM international (ASTM) specifications. The bill regulates 29   another liquid fuel referred to renewable diesel classified as 30   RD-100 that may be used as a motor fuel or a blending component 31   and classified as RD-xx. RD-100 is produced from nonfossil 32   renewable resources but is not biodiesel due to manufacturing 33   processes. Petroleum-based diesel fuel and RD-100 are subject 34   to the same ASTM specification D975 while B-100 is subject to 35   -15-   LSB 1218SV (2) 90   da/ns 15/ 17  

  S.F. 311   ASTM specification D6751 (amended Code sections 214A.1 and 1   214A.2). 2   WEIGHTS AND MEASURES  TESTING LABORATORY. The bill 3   expressly recognizes the Iowa central fuel testing laboratory 4   at Iowa central community college as the official laboratory 5   for testing motor fuels, biofuels, and renewable fuels (amended 6   Code section 214A.2B). 7   WEIGHTS AND MEASURES  CODE EDITOR DIRECTIVE. The bill 8   transfers Code section 214A.16 from subchapter I to subchapter 9   II of Code chapter 214A. The Code section regulates a notice 10   required to be posted for consumers purchasing renewable fuels. 11   In 2022, the general assembly enacted 2022 Iowa Acts, chapter 12   1152, which reorganized Code chapter 214A. Subchapter I 13   regulates general matters such as standards and classifications 14   and subchapter II regulates the advertisement, sale, and use 15   of motor fuel. 16   WEIGHTS AND MEASURES  PENALTY. A person who fails to allow 17   for an inspection of a motor fuel pump is guilty of a simple 18   misdemeanor. 19   WATER QUALITY. DALS regulates two water quality 20   initiatives, including water quality agriculture infrastructure 21   programs (amended Code section 466B.43) and the water quality 22   urban infrastructure program (amended Code section 466B.44). 23   The initiative is supported by the water quality initiative 24   fund (Code section 466B.45), the water quality infrastructure 25   fund (Code section 8.57B), and the water quality financial 26   assistance fund (Code section 16.134A). Moneys in the last 27   fund (15 percent) are appropriated to support the water quality 28   urban infrastructure program. The bill provides that DALS 29   may use moneys available to support the water quality urban 30   infrastructure program to instead support the water quality 31   agriculture infrastructure programs. The bill also eliminates 32   dates in several Code sections that are now extraneous. 33   APPLICABLE PENALTIES. A simple misdemeanor is punishable by 34   confinement for no more than 30 days and a fine of at least $105 35   -16-   LSB 1218SV (2) 90   da/ns 16/ 17  

  S.F. 311   but not more than $855. 1   -17-   LSB 1218SV (2) 90   da/ns 17/ 17