A bill for an act relating to agriculture, including by providing for the powers and duties of the department of agriculture and land stewardship, including the promotion and regulation of commodities and products; the regulation of the transportation of agricultural commodities; the use of agricultural land; and taxation, including property taxes, excise and sales taxes, and income taxes; making penalties applicable; and including effective date and applicability provisions.(Formerly HSB 588 ; See HF 2748 .)

House

File

2340

-

Introduced

HOUSE

FILE

2340

BY

COMMITTEE

ON

AGRICULTURE

(SUCCESSOR

TO

HSB

588)

A

BILL

FOR

An

Act

relating

to

agriculture,

including

by

providing

for

1

the

powers

and

duties

of

the

department

of

agriculture

and

2

land

stewardship,

including

the

promotion

and

regulation

3

of

commodities

and

products;

the

regulation

of

the

4

transportation

of

agricultural

commodities;

the

use

of

5

agricultural

land;

and

taxation,

including

property

taxes,

6

excise

and

sales

taxes,

and

income

taxes;

making

penalties

7

applicable;

and

including

effective

date

and

applicability

8

provisions.

9

BE

IT

ENACTED

BY

THE

GENERAL

ASSEMBLY

OF

THE

STATE

OF

IOWA:

10

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DIVISION

I

1

DEPARTMENT

OF

AGRICULTURE

AND

LAND

STEWARDSHIP

——

PROMOTION

——

2

RENEWABLE

FUEL

INFRASTRUCTURE

3

Section

1.

Section

159A.16,

subsection

3,

paragraphs

a,

b,

4

and

c,

Code

2026,

are

amended

to

read

as

follows:

5

a.

For

each

fiscal

year,

not

more

than

one

million

6

seven

hundred

fifty

thousand

dollars

shall

be

allocated

to

7

support

the

renewable

fuel

infrastructure

program

for

retail

8

motor

fuel

sites

as

provided

in

section

159A.14

to

finance

9

the

installation,

replacement,

or

conversion

of

biodiesel

10

infrastructure

as

provided

in

that

section.

11

b.

a.

For

each

fiscal

year,

not

more

than

one

hundred

12

fifty

thousand

dollars

shall

be

allocated

to

the

department

to

13

support

the

administration

of

the

programs.

14

c.

b.

For

each

fiscal

year,

the

department

may

use

up

to

15

three-quarters

of

one

percent

of

the

program

funds

to

market

16

the

programs.

Otherwise

the

moneys

shall

not

be

transferred,

17

used,

obligated,

appropriated,

or

otherwise

encumbered

except

18

to

allocate

as

financial

incentives

under

the

programs.

19

DIVISION

II

20

DEPARTMENT

OF

AGRICULTURE

AND

LAND

STEWARDSHIP

——

PROMOTION

21

PART

A

22

GENERAL

23

Sec.

2.

Section

23A.2,

subsection

8,

Code

2026,

is

amended

24

by

adding

the

following

new

paragraph:

25

NEW

PARAGRAPH

.

p.

An

activity

carried

out

by

the

department

26

of

agriculture

and

land

stewardship

to

promote

the

marketing

27

of

Iowa

commodities

and

products,

including

as

provided

in

28

chapters

159

and

187.

29

Sec.

3.

Section

187.201,

subsection

3,

Code

2026,

is

amended

30

to

read

as

follows:

31

3.

Moneys

in

the

fund

are

appropriated

to

the

department

and

32

shall

be

used

exclusively

to

administer

the

programs

created

33

in

this

subchapter

chapter

as

determined

and

directed

by

the

34

department,

and

shall

not

require

further

special

authorization

35

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by

the

general

assembly.

1

PART

B

2

CHOOSE

IOWA

PROMOTION

PROGRAMS

3

Sec.

4.

Section

187.301,

Code

2026,

is

amended

by

adding

the

4

following

new

subsection:

5

NEW

SUBSECTION

.

1A.

The

department

shall

enroll

a

person

as

6

a

choose

Iowa

member

who

is

any

of

the

following:

7

a.

Actively

participating

in

the

program

by

producing,

8

processing,

or

marketing

Iowa

agricultural

products

originating

9

as

commodities

produced

on

Iowa

farms.

10

b.

Otherwise

supporting

the

program

as

required

by

the

11

department.

12

Sec.

5.

Section

187.301,

subsection

2,

Code

2026,

is

amended

13

by

adding

the

following

new

paragraph:

14

NEW

PARAGRAPH

.

c.

The

department

may

adopt

rules

providing

15

for

choose

Iowa

membership

criteria.

16

Sec.

6.

Section

187.303,

subsections

1

and

2,

Code

2026,

are

17

amended

to

read

as

follows:

18

1.

A

person

may

apply

to

the

department

to

participate

19

enroll

as

a

member

in

the

choose

Iowa

promotional

program

20

according

to

procedures

established

by

rules

adopted

by

the

21

department.

The

department

shall

evaluate

and

approve

or

22

disapprove

applications

an

application

based

on

criteria

23

established

by

rules

adopted

by

the

department.

The

department

24

may

disapprove

an

application

if

the

department

determines

the

25

applicant’s

use

of

the

choose

Iowa

logo

would

be

associated

26

with

the

consumption

of

an

adulterated

or

illegal

food

item.

27

2.

The

department

may

enter

into

a

licensing

agreement

with

28

a

person

participating

enrolled

as

a

member

in

the

program.

29

The

participating

person

A

member

may

use

the

choose

Iowa

logo

30

to

advertise

a

food

item

product

originating

as

an

agricultural

31

commodity

produced

on

an

Iowa

farm,

subject

to

terms

and

32

conditions

required

by

rules

adopted

by

the

department.

A

33

licensing

agreement

shall

not

be

for

more

than

one

year.

34

Sec.

7.

NEW

SECTION

.

187.307

Choose

Iowa

school

purchasing

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program.

1

1.

There

is

created

within

the

department

a

choose

Iowa

2

school

purchasing

program.

3

2.

The

department

shall

administer

the

program

according

to

4

all

of

the

following:

5

a.

A

farm

or

business

shall

be

eligible

to

participate

in

6

the

program

if

the

farm

or

business

is

enrolled

as

a

member

of

7

the

choose

Iowa

promotional

program

as

provided

in

this

part

1

8

of

subchapter

III.

9

b.

A

school

or

school

district

is

eligible

to

participate

in

10

the

program,

if

recognized

by

the

department.

11

c.

A

qualified

food

product

is

limited

to

meat

and

poultry,

12

dairy

products

other

than

milk,

grains,

flour,

eggs,

honey,

and

13

produce.

14

3.

a.

An

eligible

school

or

school

district

purchasing

15

a

qualified

food

product

from

an

eligible

farm

or

business

16

shall

be

reimbursed

on

a

matching

basis

with

the

department

17

contributing

one

dollar

for

every

one

dollar

expended

by

the

18

eligible

school

or

school

district.

19

b.

The

department

may

establish

by

rule

the

method

and

20

limitations

for

determining

the

amount

of

funding

available

to

21

each

school

or

school

district

under

this

section.

22

c.

Notwithstanding

paragraph

“b

”,

if

the

department

23

determines

that

there

are

not

sufficient

moneys

to

satisfy

24

all

claims

that

may

be

submitted

by

schools

and

school

25

districts,

the

department

shall

provide

for

the

distribution

26

of

the

available

moneys

in

a

manner

determined

equitable

by

27

the

department,

which

may

include

a

prorated

distribution

to

28

participating

schools

and

school

districts.

29

4.

The

department

may

administer

the

program

in

cooperation

30

with

the

department

of

education

and

the

participating

school

31

or

school

district

in

which

a

participating

school

is

located.

32

5.

The

department

may

use

not

more

than

five

percent

of

the

33

moneys

appropriated

to

support

the

program

in

a

fiscal

year

to

34

pay

for

the

costs

of

administering

the

program.

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6.

The

department

shall

prepare

and

submit

a

report

1

regarding

its

findings

and

recommendations

to

the

governor

and

2

general

assembly

not

later

than

July

31

of

each

year.

3

Sec.

8.

Section

187.331,

Code

2026,

is

amended

to

read

as

4

follows:

5

187.331

Choose

Iowa

food

bank

purchasing

program.

6

1.

There

is

created

within

the

department

a

choose

Iowa

food

7

bank

purchasing

program.

8

2.

The

department

shall

administer

the

program

according

to

9

all

of

the

following

requirements

:

10

a.

A

farm

or

business

that

owns

or

operates

the

farm

source

11

shall

be

given

a

preference

to

participate

in

the

program

if

12

the

farm

or

business

is

currently

participating

eligible

to

13

participate

in

the

program

if

the

farm

or

business

is

enrolled

14

as

a

member

in

the

choose

Iowa

promotional

program

as

provided

15

in

this

part

1

of

subchapter

III.

Otherwise,

a

farm

or

16

business

may

participate

in

the

program

if

the

farm

or

business

17

has

applied

to

participate

in

the

choose

Iowa

promotional

18

program

and

the

department

determines

that

the

application

will

19

be

approved.

20

b.

An

eligible

participant

is

limited

to

any

Iowa

food

bank

21

or

an

Iowa

emergency

feeding

organization,

recognized

by

the

22

department.

23

c.

A

qualified

food

product

is

limited

to

meat

and

poultry,

24

dairy

products,

grains,

flour,

eggs,

honey,

and

produce.

25

3.

a.

Of

the

moneys

appropriated

to

support

the

program

in

26

a

fiscal

year,

not

more

than

two

hundred

thousand

dollars

shall

27

be

used

to

reimburse

Iowa

food

banks

and

Iowa

emergency

feeding

28

organizations.

29

b.

3.

a.

An

eligible

participant

Iowa

food

bank

or

an

30

emergency

feeding

organization

purchasing

a

qualified

food

31

product

from

an

eligible

farm

or

business

shall

be

reimbursed

32

on

a

matching

basis

with

the

department

contributing

one

dollar

33

for

every

one

dollar

expended

by

the

eligible

participant

Iowa

34

food

bank

or

emergency

feeding

organization

.

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c.

b.

An

Iowa

food

bank

or

Iowa

emergency

feeding

1

organization

shall

not

receive

more

than

fifty

thousand

dollars

2

per

fiscal

year

for

participating

in

the

program.

3

4.

c.

The

department

may

use

not

more

than

five

percent

of

4

the

moneys

appropriated

to

support

the

program

in

a

fiscal

year

5

to

pay

for

the

costs

of

administering

the

program.

6

5.

4.

The

department

shall

prepare

and

submit

a

report

7

regarding

its

findings

and

recommendations

to

the

governor

and

8

general

assembly

not

later

than

January

15

July

31

of

each

9

year.

10

6.

This

section

is

repealed

July

1,

2030.

11

Sec.

9.

Section

190A.2,

subsections

5

and

9,

Code

2026,

are

12

amended

by

striking

the

subsections.

13

Sec.

10.

Section

190A.2,

subsection

7,

Code

2026,

is

amended

14

to

read

as

follows:

15

7.

“Program”

means

the

farm-to-school

program

created

in

16

section

190A.6

190A.3

.

17

Sec.

11.

Section

190A.3,

subsection

1,

Code

2026,

is

amended

18

to

read

as

follows:

19

1.

The

A

farm-to-school

program

is

created

within

the

20

department.

The

program

shall

seek

to

link

elementary

and

21

secondary

public

and

nonpublic

schools

in

this

state

with

Iowa

22

farms

to

provide

schools

with

fresh

and

minimally

processed

23

food

products

for

inclusion

in

school

meals

and

snacks,

24

encourage

children

to

develop

healthy

eating

habits,

and

25

provide

Iowa

farmers

access

to

consumer

markets.

26

Sec.

12.

Section

190A.5,

subsection

3,

Code

2026,

is

amended

27

to

read

as

follows:

28

3.

Moneys

in

the

fund

are

appropriated

to

support

29

the

farm-to-school

program

in

a

manner

determined

by

the

30

department,

including

for

reasonable

administrative

costs

31

incurred

by

the

department.

However,

the

department

shall

32

not

expend

more

than

four

percent

of

moneys

existing

at

any

33

one

time

in

the

fund

during

each

fiscal

year

for

purpose

of

34

paying

costs

associated

with

the

administration

of

the

program

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and

fund

incurred

by

the

department

during

that

fiscal

year.

1

Moneys

expended

from

the

fund

shall

not

require

further

special

2

authorization

by

the

general

assembly.

3

Sec.

13.

REPEAL.

Section

190A.6,

Code

2026,

is

repealed.

4

Sec.

14.

CODE

EDITOR

DIRECTIVE.

5

1.

The

Code

editor

is

directed

to

make

the

following

6

transfers:

7

a.

Section

187.331

to

section

187.308.

8

b.

Section

159.25

to

section

187.309.

9

2.

The

Code

editor

shall

correct

internal

references

in

the

10

Code

and

in

any

enacted

legislation

as

necessary

due

to

the

11

enactment

of

this

section.

12

PART

C

13

INNOVATION

AND

REVITALIZATION

PROGRAMS

14

Sec.

15.

Section

187.311,

Code

2026,

is

amended

by

adding

15

the

following

new

subsection:

16

NEW

SUBSECTION

.

5A.

The

department

may

give

priority

to

an

17

applicant

who

is

a

beginning

farmer.

18

Sec.

16.

NEW

SECTION

.

187.315

Butchery

innovation

and

19

revitalization

program.

20

1.

A

butchery

innovation

and

revitalization

program

is

21

created

within

the

department.

The

purpose

of

the

program

is

22

to

promote

the

development,

modernization,

and

expansion

of

23

this

state’s

butchery

industry.

24

2.

In

administering

the

program,

the

department

shall

award

25

financial

assistance

to

eligible

businesses

to

support

projects

26

that

do

one

or

more

of

the

following:

27

a.

To

expand

or

refurbish

an

existing,

or

to

establish

a

28

new,

state-inspected

small-scale

meat

processing

business.

29

b.

To

expand

or

refurbish

an

existing,

or

to

establish

a

30

new,

federally

inspected

small-scale

meat

processing

business.

31

c.

To

expand

or

refurbish

an

existing,

or

to

establish

a

32

new,

licensed

custom

locker.

33

d.

To

expand

or

refurbish

an

existing,

or

to

establish

a

34

new,

mobile

slaughter

unit

that

operates

in

compliance

with

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the

most

current

mobile

slaughter

unit

compliance

guide

issued

1

by

the

United

States

department

of

agriculture

food

safety

and

2

inspection

service.

3

e.

To

rent

buildings,

refrigeration

facilities,

freezer

4

facilities,

or

equipment

necessary

to

expand

processing

5

capacity,

including

mobile

slaughter

or

refrigeration

units

6

used

exclusively

for

meat

or

poultry

processing.

7

3.

The

department

shall

establish

eligibility

criteria

for

8

the

program.

The

eligibility

criteria

must

include

all

of

the

9

following:

10

a.

The

business

must

be

located

in

this

state.

11

b.

The

business

must

not

have

been

subject

to

any

regulatory

12

enforcement

action

related

to

federal,

state,

or

local

13

environmental,

worker

safety,

food

processing,

or

food

safety

14

laws,

rules,

or

regulations

within

the

last

five

years.

15

c.

The

business

must

only

employ

individuals

legally

16

authorized

to

work

in

this

state.

17

d.

The

business

must

not

currently

be

in

bankruptcy.

18

e.

The

business

must

employ

less

than

two

hundred

full-time

19

nonseasonal

individuals.

20

4.

An

eligible

business

seeking

financial

assistance

under

21

this

section

shall

make

application

to

the

department

in

the

22

manner

and

on

forms

prescribed

by

the

department.

23

5.

Applications

for

financial

assistance

under

this

section

24

shall

be

accepted

during

one

or

more

annual

application

periods

25

established

by

the

department.

Upon

reviewing

and

scoring

all

26

applications

that

are

received

during

an

application

period,

27

and

subject

to

the

availability

of

moneys,

the

department

may

28

award

financial

assistance

to

eligible

businesses.

A

financial

29

assistance

award

shall

not

exceed

the

amount

of

eligible

30

project

costs

included

in

the

eligible

business’s

application.

31

Priority

shall

be

given

to

eligible

businesses

whose

proposed

32

project

or

projects

under

subsection

2

are

most

likely

to

do

33

one

or

more

of

the

following:

34

a.

Create

new

jobs.

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b.

Create

or

expand

opportunities

for

local

small-scale

1

farmers

to

market

processed

meat

under

private

labels.

2

c.

Provide

greater

flexibility

or

convenience

for

local

3

small-scale

farmers

to

have

animals

processed.

4

6.

An

eligible

business

that

is

awarded

financial

5

assistance

under

this

section

may

apply

for

financial

6

assistance

under

other

programs

administered

by

the

department.

7

Sec.

17.

REPEAL.

Section

15E.370,

Code

2026,

is

repealed.

8

DIVISION

III

9

DEPARTMENT

OF

AGRICULTURE

AND

LAND

STEWARDSHIP

REGULATION

——

10

ANIMAL

HEALTH

11

Sec.

18.

Section

163.1,

Code

2026,

is

amended

by

adding

the

12

following

new

subsection:

13

NEW

SUBSECTION

.

7A.

Lease

facilities

in

order

to

carry

out

14

and

administer

the

provisions

of

this

chapter

related

to

an

15

infectious

or

contagious

disease

or

a

foreign

animal

disease

16

preparedness

and

response

effort.

17

Sec.

19.

NEW

SECTION

.

163.2B

Confidentiality.

18

1.

Notwithstanding

section

22.7,

all

information

and

19

records

relating

to

an

infectious

or

contagious

disease

20

received

or

collected

by

the

department

pursuant

to

this

21

chapter,

including

rules

adopted

under

this

chapter

by

the

22

department,

is

confidential

to

the

extent

it

identifies

any

of

23

the

following:

24

a.

The

name,

address,

and

contact

information

of

any

person

25

owning

or

caring

for

an

animal

suspected

of

or

being

affected

26

with

any

infectious

or

contagious

disease.

27

b.

Any

location

where

an

animal

suspected

of

or

being

28

affected

with

any

infectious

or

contagious

disease

has

been

29

kept.

30

c.

Information

that

when

considered

together

leads

to

the

31

identity

of

a

person

described

in

paragraph

“a”

or

a

location

or

32

premises

described

in

paragraph

“b”

.

33

2.

Notwithstanding

subsection

1,

the

department,

in

34

acting

as

the

lawful

custodian

of

the

confidential

record,

may

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disclose

the

record

or

any

part

of

the

record

if

it

is

deemed

1

necessary

by

the

state

veterinarian

to

protect

the

public

2

health

or

the

health

or

well-being

of

animals

within

the

state.

3

DIVISION

IV

4

DEPARTMENT

OF

AGRICULTURE

AND

LAND

STEWARDSHIP

——

REGULATION

5

——

WEIGHTS

AND

MEASURES

6

Sec.

20.

Section

210.1,

Code

2026,

is

amended

to

read

as

7

follows:

8

210.1

Standard

established

Weights

and

measures

standards

——

9

compliance

with

federal

law

.

10

The

weights

and

measures

which

have

been

presented

by

the

11

department

to

the

United

States

national

institute

of

standards

12

and

technology

and

approved,

standardized,

and

certified

by

13

the

institute

in

accordance

with

the

laws

of

the

Congress

of

14

the

United

States

shall

be

the

standard

weights

and

measures

15

throughout

the

state

regulated

under

this

chapter

shall

conform

16

with

Iowa’s

state

primary

standard

of

weights

and

measures

as

17

described

in

section

215.1B

.

18

Sec.

21.

Section

213.1,

Code

2026,

is

amended

to

read

as

19

follows:

20

213.1

State

metrologist.

21

The

department

secretary

of

agriculture

may

designate

22

one

of

its

assistants

the

bureau

chief

of

the

department’s

23

weights

and

measures

bureau

to

act

as

state

metrologist

24

of

weights

and

measures.

All

weights

and

measures

sealed

25

by

the

state

metrologist

shall

be

impressed

with

the

word

26

“Iowa.”

The

bureau

chief

is

the

appropriate

state

official

27

responsible

for

cooperating

with

the

national

institute

of

28

standards

and

technology

as

defined

in

section

215.1

and

in

the

29

administration

of

weights

and

measures

as

regulated

in

this

30

subtitle.

31

Sec.

22.

Section

213.2,

Code

2026,

is

amended

to

read

as

32

follows:

33

213.2

Physical

United

States

standards

——

conformity

.

34

Weights

and

measures

,

which

conform

to

the

standards

of

the

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United

States

national

institute

of

standards

and

technology

1

existing

as

of

January

1,

1979,

that

are

metrologically

2

traceable

to

the

United

States

standards

supplied

by

the

3

federal

government

or

approved

as

being

in

compliance

with

4

its

standards

recognized

by

the

national

bureau

institute

of

5

standards

and

technology

shall

be

the

Iowa’s

state

primary

6

standard

of

weights

and

measures

as

verified

by

the

department

.

7

Such

The

traceable

standards

of

weights

and

measures

shall

8

be

verified

upon

their

initial

receipt

of

same

by

the

9

department

and

as

often

as

deemed

necessary

by

the

secretary

10

of

agriculture

department

.

The

secretary

department

may

11

provide

for

the

alteration

in

revise

the

state

primary

standard

12

of

weights

and

measures

in

order

to

maintain

metrological

13

traceability

with

the

standard

standards

of

the

United

States

14

national

institute

of

standards

and

technology.

All

such

15

alterations

The

verification

or

revision

shall

be

made

pursuant

16

to

rules

promulgated

adopted

by

the

secretary

department

in

17

accordance

with

chapter

17A

.

18

Sec.

23.

Section

214.3,

subsection

1,

Code

2026,

is

amended

19

to

read

as

follows:

20

1.

A

license

fee

is

imposed

on

a

person

who

uses

or

21

displays

for

use

a

commercial

weighing

and

measuring

device.

22

The

license

fee

is

due

the

day

the

department

issues

the

23

license.

The

amount

of

the

license

fee

shall

be

calculated

in

24

accordance

with

the

class

or

section

for

devices

as

established

25

by

handbook

44

of

the

United

States

national

institute

of

26

standards

and

technology.

27

Sec.

24.

Section

215.1,

subsection

1,

Code

2026,

is

amended

28

to

read

as

follows:

29

1.

a.

“Commercial

weighing

and

measuring

device”

or

“device”

30

means

a

weight

or

measure

or

weighing

or

measuring

device

31

used

to

establish

size,

quantity,

area

or

other

quantitative

32

measurement

of

a

commodity

sold

by

weight

or

measurement,

or

33

where

when

the

price

to

be

paid

for

producing

the

commodity

is

34

based

upon

the

weight

or

measurement

of

the

commodity.

The

35

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term

1

b.

“Commercial

weighing

and

measuring

device”

includes

an

any

2

of

the

following:

3

(1)

An

accessory

attached

to

or

used

in

connection

with

4

a

commercial

weighing

or

measuring

device

when

the

accessory

5

is

so

designed

or

installed

that

its

operation

may

affect

the

6

accuracy

of

the

device.

“Commercial

weighing

and

measuring

7

device”

includes

a

8

(2)

A

public

scale

or

a

commercial

scanner.

9

Sec.

25.

Section

215.1,

Code

2026,

is

amended

by

adding

the

10

following

new

subsection:

11

NEW

SUBSECTION

.

3A.

“National

institute

of

standards

and

12

technology”

means

the

national

institute

of

standards

and

13

technology

established

within

the

United

States

department

of

14

commerce

pursuant

to

15

U.S.C.

§272.

15

Sec.

26.

Section

215.1A,

Code

2026,

is

amended

to

read

as

16

follows:

17

215.1A

Inspections.

18

1.

The

Except

as

otherwise

expressly

provided

by

statute,

19

the

department

shall

regularly

of

agriculture

and

land

20

stewardship

may

inspect

all

any

commercial

weighing

and

21

measuring

devices,

and

when

device.

If

the

department

22

receives

a

complaint

is

made

to

the

department

that

any

false

23

or

incorrect

alleging

weights

or

measures

are

being

made

24

inaccurately

recorded

by

a

device

,

the

department

shall

inspect

25

the

commercial

weighing

and

measuring

devices

which

caused

the

26

complaint

device

.

27

2.

The

department

may

inspect

a

prepackaged

goods

good

to

28

determine

the

accuracy

of

their

its

recorded

weights

weight

.

29

3.

a.

The

department

may

order

the

owner

of

the

device

30

or

a

service

agency

that

installed,

serviced,

or

repaired

the

31

device,

to

deliver

to

the

department

one

or

more

of

the

service

32

agency’s

most

recent

test

reports

documenting

the

device’s

33

accuracy.

34

b.

(1)

Except

as

provided

in

subparagraph

(2),

the

delivery

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of

a

report

may

be

in

lieu

of

an

inspection.

1

(2)

The

department

shall

provide

for

an

inspection

of

any

2

of

the

following:

3

(a)

A

motor

fuel

pump

as

required

in

section

214.11.

4

(b)

A

moisture-measuring

device

as

required

in

section

5

215A.2.

6

(c)

A

charging

station

dispensing

electric

fuel

as

required

7

in

section

452A.41.

8

Sec.

27.

Section

215.14,

subsection

3,

Code

2026,

is

amended

9

to

read

as

follows:

10

3.

Before

approval

by

the

department,

the

specifications

11

for

a

commercial

weighing

and

measuring

device

shall

be

12

furnished

to

the

purchaser

of

the

device

by

the

manufacturer.

13

The

approval

shall

be

based

upon

the

recommendation

of

the

14

United

States

national

institute

of

standards

and

technology.

15

Sec.

28.

Section

215.19,

Code

2026,

is

amended

to

read

as

16

follows:

17

215.19

Automatic

recorders

on

scales.

18

Except

for

scales

a

scale

used

by

packers

a

packer

19

slaughtering

fewer

than

one

hundred

twenty

head

of

livestock

20

per

day,

all

scales

a

scale

with

a

capacity

over

five

hundred

21

pounds,

which

are

used

for

commercial

purposes

,

in

this

22

state,

and

installed

after

January

1,

1981,

shall

be

equipped

23

with

a

type-registering

weigh

beam,

a

dial

with

a

mechanical

24

ticket

printer,

an

automatic

weight

recorder,

or

some

similar

25

commercial

weighing

and

measuring

device

,

which

shall

be

used

26

for

printing

or

stamping

the

weight

values

on

scale

tickets.

27

A

scale

or

similar

device

equipped

with

a

malfunctioning

28

automatic

weight

recorder

may

shall

not

be

used

for

not

more

29

than

seven

days

if

the

scale

or

similar

device

is

unable

to

30

print

or

stamp

the

ticket

so

long

as

and

only

if

a

repair

to

the

31

automatic

recorder

is

immediately

initiated

and

the

user

dates,

32

signs,

and

accurately

handwrites

the

required

information

on

33

the

ticket

until

the

scale

or

similar

device

is

operational.

34

Sec.

29.

Section

215.23,

subsection

2,

Code

2026,

is

amended

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to

read

as

follows:

1

2.

In

determining

a

servicer’s

qualifications,

the

2

department

may

consider

the

specifications

of

the

United

States

3

national

institute

of

standards

and

technology,

handbook

44,

4

“Specifications,

Tolerances,

and

Technical

Requirements

for

5

Weighing

and

Measuring

Devices”,

or

the

current

successor

or

6

equivalent

specifications

adopted

by

the

United

States

national

7

institute

of

standards

and

technology.

8

Sec.

30.

Section

452A.40,

Code

2026,

is

amended

by

adding

9

the

following

new

subsection:

10

NEW

SUBSECTION

.

5A.

“National

institute

of

standards

and

11

technology”

means

the

same

as

defined

in

section

215.1.

12

Sec.

31.

REPEAL.

Sections

213.3

and

213.7,

Code

2026,

are

13

repealed.

14

Sec.

32.

CODE

EDITOR

DIRECTIVE.

15

1.

The

Code

editor

is

directed

to

make

the

following

16

transfers:

17

a.

Section

213.1

to

section

215.1B.

18

b.

Section

213.2

to

section

215.1C.

19

c.

Section

215.18

to

section

215.1D.

20

d.

Section

215.1A

to

section

215.1E.

21

2.

The

Code

editor

shall

correct

internal

references

in

the

22

Code

and

in

any

enacted

legislation

as

necessary

due

to

the

23

enactment

of

this

section.

24

DIVISION

V

25

DEPARTMENT

OF

AGRICULTURE

AND

LAND

STEWARDSHIP

REGULATION

——

26

GRAIN

MARKETING

27

PART

A

28

GRAIN

DEALERS

29

Sec.

33.

Section

203.3,

subsection

4,

paragraph

b,

Code

30

2026,

is

amended

to

read

as

follows:

31

b.

(1)

The

grain

dealer

shall

submit

to

the

department

,

32

as

required

by

the

department,

a

financial

statement

that

is

33

accompanied

by

an

unqualified

opinion

based

upon

an

audit

34

performed

by

a

certified

public

accountant

licensed

in

this

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state.

1

(2)

Notwithstanding

subparagraph

(1),

if

a

grain

dealer

2

does

not

purchase

grain

by

credit-sale

contract,

the

department

3

may

accept

any

of

the

following:

4

(a)

A

qualification

in

an

opinion

based

on

an

audit

that

5

is

unavoidable

by

any

audit

procedure

that

is

permitted

under

6

generally

accepted

accounting

principles.

An

opinion

that

7

is

qualified

because

of

a

limited

audit

procedure

or

because

8

the

scope

of

an

audit

is

limited

shall

not

be

accepted

by

the

9

department.

10

(b)

A

financial

statement

that

is

accompanied

by

the

11

report

of

a

certified

public

accountant

licensed

in

this

12

state.

The

report

must

be

based

upon

a

review

performed

by

the

13

certified

public

accountant.

The

report

shall

be

in

lieu

of

an

14

unqualified

opinion

based

on

an

audit.

However,

at

any

time,

15

upon

good

cause,

the

department

may

require

the

grain

dealer

to

16

submit

to

the

department

a

subsequent

financial

statement

that

17

is

accompanied

by

the

report.

18

(3)

The

department

shall

not

require

that

a

grain

dealer

to

19

submit

to

the

department

more

than

one

such

unqualified

opinion

20

based

on

an

audit

per

year.

21

(4)

A

grain

dealer

shall

submit

one

or

more

financial

22

statements

to

the

department

in

addition

to

the

financial

23

statement

accompanied

by

an

unqualified

opinion

based

on

24

an

audit

as

required

in

this

paragraph

if

the

department

25

determines

that

it

is

necessary

to

verify

the

grain

dealer’s

26

financial

status

or

compliance

with

this

section

.

27

Sec.

34.

Section

203.3,

subsection

5,

paragraph

b,

Code

28

2026,

is

amended

to

read

as

follows:

29

b.

(1)

The

grain

dealer

shall

submit

to

the

department

,

30

as

required

by

the

department,

a

financial

statement

that

is

31

accompanied

by

an

unqualified

opinion

based

upon

an

audit

32

performed

by

a

certified

public

accountant

licensed

in

this

33

state.

34

(2)

Notwithstanding

subparagraph

(1),

the

department

may

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accept

any

of

the

following:

1

(a)

A

qualification

in

an

opinion

based

on

an

audit

that

2

is

unavoidable

by

any

audit

procedure

that

is

permitted

under

3

generally

accepted

accounting

principles.

An

opinion

that

4

is

qualified

because

of

a

limited

audit

procedure

or

because

5

the

scope

of

an

audit

is

limited

shall

not

be

accepted

by

the

6

department.

7

(b)

A

financial

statement

that

is

accompanied

by

the

8

report

of

a

certified

public

accountant

licensed

in

this

9

state.

The

report

must

be

based

upon

a

review

performed

by

the

10

certified

public

accountant.

The

report

shall

be

in

lieu

of

an

11

unqualified

opinion

based

on

an

audit.

However,

at

any

time,

12

upon

good

cause,

the

department

may

require

the

grain

dealer

to

13

submit

to

the

department

a

subsequent

financial

statement

that

14

is

accompanied

by

the

report.

15

(3)

The

department

shall

not

require

that

a

grain

dealer

to

16

submit

to

the

department

more

than

one

such

unqualified

opinion

17

based

on

an

audit

per

year.

18

(4)

A

grain

dealer

shall

submit

one

or

more

financial

19

statements

to

the

department

in

addition

to

the

financial

20

statement

accompanied

by

an

unqualified

opinion

based

on

an

21

audit

required

in

this

paragraph

if

the

department

determines

22

that

it

is

necessary

to

verify

the

grain

dealer’s

financial

23

status

or

compliance

with

this

section

.

24

Sec.

35.

Section

203.8,

subsection

2,

paragraph

a,

Code

25

2026,

is

amended

to

read

as

follows:

26

a.

(1)

“Delivery”

Subject

to

subparagraph

(2),

“delivery”

27

means

the

transfer

of

title

to

and

possession

of

grain

by

a

28

seller

to

a

grain

dealer

or

to

another

person

in

accordance

29

with

the

terms

of

an

agreement

of

by

the

seller

and

the

grain

30

dealer.

31

(2)

Unless

title

to

grain

was

previously

transferred

32

pursuant

to

an

ordinary

cash-sale

contract,

title

to

grain

sold

33

by

credit-sale

contract

is

deemed

to

have

transferred

to

the

34

grain

dealer

when

all

of

the

following

occurs:

35

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(a)

The

credit-sale

contract

is

signed

by

both

the

grain

1

dealer

and

the

seller.

2

(b)

The

grain

dealer

has

possession

of

the

grain

or

another

3

person

has

possession

of

the

grain

in

accordance

with

the

terms

4

of

the

credit-sale

contract.

5

Sec.

36.

Section

203.12,

subsection

1,

Code

2026,

is

amended

6

to

read

as

follows:

7

1.

Upon

the

cessation

of

a

grain

dealer

license

by

8

revocation,

cancellation,

or

expiration

pursuant

to

section

9

203.10

or

upon

the

filing

of

a

petition

in

bankruptcy

by

a

10

grain

dealer

,

any

claim

for

the

purchase

price

of

grain

against

11

the

grain

dealer

shall

be

made

in

writing

and

filed

with

the

12

grain

dealer

and

with

the

issuer

of

a

deficiency

bond

or

of

an

13

irrevocable

letter

of

credit

and

with

the

department

within

14

one

hundred

twenty

days

after

the

date

of

the

cessation

or

the

15

filing

of

a

petition

in

bankruptcy,

whichever

occurs

earlier

.

16

A

failure

to

make

this

timely

claim

relieves

the

issuer

and

the

17

grain

depositors

and

sellers

indemnity

fund

provided

in

chapter

18

203D

of

all

obligations

to

the

claimant.

19

Sec.

37.

Section

203.12A,

subsection

5,

Code

2026,

is

20

amended

to

read

as

follows:

21

5.

The

Iowa

grain

indemnity

fund

board,

upon

written

demand

22

of

the

grain

dealer,

shall

file

a

termination

statement

with

23

the

secretary

of

state,

if

after

one

hundred

eighty

days

from

24

the

date

that

the

lien

is

perfected

the

grain

dealer’s

license

25

has

not

ceased

by

revocation,

cancellation,

or

expiration

26

pursuant

to

section

203C.10

.

Upon

filing

the

termination

27

statement,

the

lien

becomes

unperfected.

The

board

shall

28

also

deliver

a

copy

of

the

termination

statement

to

the

grain

29

dealer.

30

PART

B

31

GRAIN

OPERATORS

32

Sec.

38.

Section

203C.6,

subsection

4,

paragraph

b,

Code

33

2026,

is

amended

to

read

as

follows:

34

b.

(1)

The

warehouse

operator

shall

submit

to

the

35

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department

,

as

required

by

the

department,

a

financial

1

statement

that

is

accompanied

by

an

unqualified

opinion

based

2

upon

an

audit

performed

by

a

certified

public

accountant

3

licensed

in

this

state.

4

(2)

Notwithstanding

subparagraph

(1),

the

department

may

5

accept

any

of

the

following:

6

(a)

A

qualification

in

an

opinion

based

on

an

audit

that

7

is

unavoidable

by

any

audit

procedure

that

is

permitted

under

8

generally

accepted

accounting

principles.

An

opinion

that

9

is

qualified

because

of

a

limited

audit

procedure

or

because

10

the

scope

of

an

audit

is

limited

shall

not

be

accepted

by

the

11

department.

12

(b)

A

financial

statement

that

is

accompanied

by

the

13

report

of

a

certified

public

accountant

licensed

in

this

14

state.

The

report

must

be

based

upon

a

review

performed

by

15

the

certified

public

accountant.

The

report

shall

be

in

lieu

16

of

an

unqualified

opinion

based

on

an

audit.

However,

at

any

17

time,

upon

good

cause,

the

department

may

require

the

warehouse

18

operator

to

submit

to

the

department

a

subsequent

financial

19

statement

that

is

accompanied

by

the

report.

20

(3)

The

department

shall

not

require

that

a

warehouse

21

operator

to

submit

to

the

department

more

than

one

such

22

unqualified

opinion

based

on

an

audit

per

year.

23

(4)

A

warehouse

operator

shall

submit

one

or

more

financial

24

statements

to

the

department

in

addition

to

the

financial

25

statement

accompanied

by

an

unqualified

opinion

based

on

26

an

audit

as

required

in

this

paragraph

if

the

department

27

determines

that

it

is

necessary

to

verify

the

warehouse

28

operator’s

financial

status

or

compliance

with

this

section

.

29

Sec.

39.

Section

203C.6,

subsection

5,

paragraph

b,

Code

30

2026,

is

amended

to

read

as

follows:

31

b.

(1)

The

warehouse

operator

shall

submit

to

the

32

department

,

as

required

by

the

department,

a

financial

33

statement

that

is

accompanied

by

an

unqualified

opinion

based

34

upon

an

audit

performed

by

a

certified

public

accountant

35

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licensed

in

this

state.

1

(2)

Notwithstanding

subparagraph

(1),

the

department

may

2

accept

any

of

the

following:

3

(a)

A

qualification

in

an

opinion

based

on

an

audit

that

4

is

unavoidable

by

any

audit

procedure

that

is

permitted

under

5

generally

accepted

accounting

principles.

An

opinion

that

6

is

qualified

because

of

a

limited

audit

procedure

or

because

7

the

scope

of

an

audit

is

limited

shall

not

be

accepted

by

the

8

department.

9

(b)

A

financial

statement

that

is

accompanied

by

the

10

report

of

a

certified

public

accountant

licensed

in

this

11

state.

The

report

must

be

based

upon

a

review

performed

by

12

the

certified

public

accountant.

The

report

shall

be

in

lieu

13

of

an

unqualified

opinion

based

on

an

audit.

However,

at

any

14

time,

upon

good

cause,

the

department

may

require

the

warehouse

15

operator

to

submit

to

the

department

a

subsequent

financial

16

statement

that

is

accompanied

by

the

report.

17

(3)

The

department

shall

not

require

that

a

warehouse

18

operator

to

submit

more

than

one

such

unqualified

opinion

based

19

on

an

audit

per

year.

20

(4)

A

warehouse

operator

shall

submit

one

or

more

financial

21

statements

to

the

department

in

addition

to

the

financial

22

statement

accompanied

by

an

unqualified

opinion

based

on

23

an

audit

as

required

in

this

paragraph

if

the

department

24

determines

that

it

is

necessary

to

verify

the

warehouse

25

operator’s

financial

status

or

compliance

with

this

section

.

26

Sec.

40.

Section

203C.12A,

subsection

5,

Code

2026,

is

27

amended

to

read

as

follows:

28

5.

The

Iowa

grain

indemnity

fund

board

shall

upon

written

29

demand

of

the

warehouse

operator

file

a

termination

statement

30

with

the

secretary

of

state,

if

after

one

hundred

eighty

31

days

from

the

date

that

the

lien

is

perfected

the

warehouse

32

operator’s

license

has

not

ceased

by

revocation,

cancellation,

33

or

expiration

pursuant

to

section

203C.10

.

Upon

filing

the

34

termination

statement,

the

lien

becomes

unperfected.

The

board

35

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2340

shall

also

deliver

a

copy

of

the

termination

statement

to

the

1

warehouse

operator.

2

Sec.

41.

Section

203C.14,

subsection

2,

paragraphs

a

and

c,

3

Code

2026,

are

amended

to

read

as

follows:

4

a.

Upon

the

cessation

of

a

warehouse

operator’s

license

due

5

to

revocation,

cancellation,

or

expiration

pursuant

to

section

6

203C.10

or

upon

the

filing

of

a

petition

in

bankruptcy

by

a

7

warehouse

operator

,

a

claim

against

the

warehouse

operator

8

arising

under

this

chapter

shall

be

made

in

writing

with

the

9

warehouse

operator,

with

the

issuer

of

a

bond

on

agricultural

10

products

other

than

bulk

grain,

a

deficiency

bond,

or

an

11

irrevocable

letter

of

credit,

and,

if

the

claim

relates

to

bulk

12

grain,

with

the

department.

The

claim

must

be

made

within

one

13

hundred

twenty

days

after

the

cessation

of

the

license

or

the

14

filing

of

a

petition

in

bankruptcy,

whichever

occurs

earlier

.

15

The

failure

to

make

a

timely

claim

relieves

the

issuer

and,

16

if

the

claim

relates

to

bulk

grain,

the

grain

depositors

17

and

sellers

indemnity

fund

provided

in

chapter

203D

of

all

18

obligations

to

the

claimant.

19

c.

This

subsection

does

not

apply

if

a

receiver

is

appointed

20

as

provided

in

this

chapter

pursuant

to

a

petition

which

that

21

is

filed

by

the

department

prior

to

the

expiration

of

one

22

hundred

twenty

days

after

cessation

of

a

warehouse

operator’s

23

license

pursuant

to

section

203C.10

.

24

Sec.

42.

Section

203C.18,

subsection

3,

Code

2026,

is

25

amended

to

read

as

follows:

26

3.

A

form

for

a

warehouse

receipt

shall

only

be

printed

by

27

a

person

approved

by

the

department.

A

form

for

a

warehouse

28

receipt

shall

be

printed

in

accordance

with

specifications

set

29

forth

by

the

department.

A

warehouse

operator

shall

surrender

30

to

the

department

all

forms

for

warehouse

receipts

that

are

31

unused

at

the

time

that

the

warehouse

operator’s

license

32

is

suspended

or

ceases

due

to

revocation,

cancellation,

or

33

expiration

pursuant

to

section

203C.10

.

The

warehouse

operator

34

shall

surrender

the

warehouse

receipts

in

a

manner

required

by

35

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the

department.

1

PART

C

2

GRAIN

DEPOSITORS

AND

SELLERS

INDEMNIFICATION

3

Sec.

43.

Section

203D.3A,

subsection

2,

Code

2026,

is

4

amended

by

adding

the

following

new

paragraph:

5

NEW

PARAGRAPH

.

e.

(1)

If

the

per-bushel

fee

is

passed

6

on

to

a

seller,

the

per-bushel

fee

shall

occur

at

the

time

of

7

payment.

8

(2)

As

used

in

subparagraph

(1),

“payment”

means

the

same

as

9

defined

in

section

203.8.

10

Sec.

44.

Section

203D.6,

subsection

8,

paragraph

a,

Code

11

2026,

is

amended

to

read

as

follows:

12

a.

Upon

a

determination

by

the

board

that

an

eligible

13

claim

satisfies

the

requirements

in

subsection

4

,

the

board

14

shall

indemnify

the

claimant

as

a

depositor

under

subsection

15

5

,

and

a

seller

under

subsection

6

.

Upon

a

determination

by

16

the

board

that

an

eligible

repayment

claim

was

filed

by

that

17

seller

under

section

203D.6A

,

derives

from

the

same

covered

18

transaction

during

the

claim

period,

and

the

repayment

loss

19

incurred

for

that

claim,

the

board

shall

indemnify

the

claimant

20

as

a

seller

subject

to

the

requirements

of

this

section

and

21

section

203D.6A

.

22

Sec.

45.

Section

203D.6A,

subsection

2,

Code

2026,

is

23

amended

to

read

as

follows:

24

2.

To

be

timely,

a

seller

must

file

a

repayment

claim

with

25

the

department

not

later

than

sixty

days

after

the

amount

26

of

the

seller’s

loss

is

finalized

by

a

bankruptcy

court,

27

whether

by

an

order

issued,

judgment

entered,

or

settlement

28

agreement

approved.

However,

if

a

seller’s

loss

is

based

upon

29

a

bankruptcy

court’s

default

judgment,

to

be

timely,

the

seller

30

must

file

a

repayment

claim

with

the

department

not

later

than

31

sixty

days

after

the

bankruptcy

court’s

default

judgment

is

32

entered

or

a

subsequent

settlement

agreement

is

approved

and

33

entered,

whichever

is

later.

34

DIVISION

VI

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DEPARTMENT

OF

TRANSPORTATION

REGULATION

——

MOTOR

VEHICLES

1

PART

A

2

MILK

HAULERS

3

Sec.

46.

Section

321E.29B,

subsection

1,

Code

2026,

is

4

amended

to

read

as

follows:

5

1.

Notwithstanding

section

321E.8

,

the

department

6

permit-issuing

authority

may

issue

annual

permits

for

the

7

operation

of

vehicles

or

combinations

of

vehicles

transporting

8

fluid

milk

products

to

or

from

a

milk

plant,

receiving

9

station,

or

transfer

station,

exceeding

the

weight

limitation

10

of

section

321.463

but

not

exceeding

a

gross

weight

of

11

ninety-six

one

hundred

thirty-six

thousand

pounds

,

on

primary

12

roads

and

primary

road

extensions

in

cities

.

The

department

13

shall

establish

rules

regarding

minimum

distances

for

axle

14

configurations.

15

Sec.

47.

EFFECTIVE

DATE.

This

part

of

this

division

of

this

16

Act

takes

effect

January

1,

2027.

17

PART

B

18

IMPLEMENTS

OF

HUSBANDRY

19

Sec.

48.

Section

321.457,

subsection

2,

paragraph

f,

Code

20

2026,

is

amended

to

read

as

follows:

21

f.

(1)

A

trailer

or

semitrailer,

laden

or

unladen,

shall

22

not

have

an

overall

length

in

excess

of

fifty-three

feet

23

when

operating

in

a

truck

tractor-semitrailer

combination

24

exclusive

of

retractable

extensions

used

to

support

the

load.

25

However,

when

a

trailer

or

semitrailer

is

used

exclusively

26

for

the

transportation

of

passenger

vehicles,

light

delivery

27

trucks,

panel

delivery

trucks,

pickup

trucks,

recreational

28

vehicle

chassis,

or

boats,

the

load

carried

on

the

trailer

or

29

semitrailer

may

extend

up

to

three

feet

beyond

the

front

bumper

30

and

up

to

four

feet

beyond

the

rear

bumper

of

the

trailer

or

31

semitrailer.

32

(2)

A

lowboy

semitrailer,

laden

or

unladen,

which

that

is

33

designed

and

exclusively

used

for

the

transportation

of

either

34

construction

equipment

or

an

implement

of

husbandry

shall

not

35

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have

an

overall

length

in

excess

of

fifty-seven

feet

when

used

1

in

a

truck

tractor-semitrailer

combination.

2

DIVISION

VII

3

AGRICULTURAL

TOURISM

4

Sec.

49.

Section

673A.3,

subsection

6,

paragraph

b,

Code

5

2026,

is

amended

to

read

as

follows:

6

b.

“Farm”

includes

but

is

not

limited

to

a

farm

field,

7

orchard,

tree

farm,

nursery,

greenhouse,

garden,

elevator,

8

seedhouse,

barn,

warehouse,

animal

feeding

operation

structure,

9

winery,

brewery,

distillery,

or

any

personal

property

located

10

on

the

land

including

machinery

or

equipment

used

in

the

11

production

of

a

farm

commodity.

12

Sec.

50.

Section

673A.3,

subsection

9,

Code

2026,

is

amended

13

to

read

as

follows:

14

9.

“Farm

crop”

means

a

plant

or

fungus

used

for

food,

animal

15

feed,

fiber,

or

oil,

energy,

or

decoration,

including

any

of

16

the

following:

17

a.

A

forage

or

cereal

plant,

including

but

not

limited

to

18

alfalfa,

barley,

buckwheat,

corn,

flax,

forage,

millet,

oats,

19

popcorn,

rye,

sorghum,

soybeans,

sunflowers,

wheat,

and

grasses

20

used

for

forage

or

silage.

21

b.

Edible

or

ornamental

produce,

including

but

not

limited

22

to

fruit

such

as

apples,

cherries,

peaches,

pears,

berries,

and

23

grapes;

vegetables

such

as

asparagus,

broccoli,

and

carrots;

24

lentils;

tubers;

squashes

and

pumpkins;

gourds;

nuts;

maple

25

syrup;

mushrooms;

Christmas

trees;

and

flowers.

26

c.

Lumber,

logs,

pulpwood,

and

cordwood.

27

d.

Honey.

28

DIVISION

VIII

29

LAND

USE

30

Sec.

51.

Section

335.2,

Code

2026,

is

amended

by

adding

the

31

following

new

subsection:

32

NEW

SUBSECTION

.

4.

As

used

in

subsection

1,

an

agricultural

33

purpose

includes

but

is

not

limited

to

an

agricultural

tourism

34

activity

or

event,

value-added

agricultural

processing,

35

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direct-to-consumer

marketing,

or

other

farm-based

enterprise

1

that

supports

the

economic

viability

of

a

farm.

2

Sec.

52.

Section

335.28,

Code

2026,

is

amended

to

read

as

3

follows:

4

335.28

Agricultural

experiences

experience

.

5

1.

a.

For

purposes

of

this

section

,

“agricultural

6

experience”

includes

but

is

not

limited

to

any

7

agriculture-related

activity

,

or

agriculture-related

8

event

,

as

a

that

constitutes

a

secondary

use

in

conjunction

9

with

agricultural

production,

on

a

farm

which

if

the

10

agriculture-related

activity

,

or

agriculture-related

event,

11

is

located

on

a

farm

and

open

to

the

public

with

for

the

12

intended

purpose

of

promoting

or

educating

the

public

about

13

agriculture,

agricultural

practices,

agricultural

activities,

14

or

agricultural

products.

15

b.

“Agricultural

experience”

also

includes

agricultural

16

tourism

activities

and

events,

such

as

recreational,

17

entertainment,

dining,

celebratory,

and

overnight

lodging

18

opportunities

offered

on

a

working

farm,

so

long

as

the

farm’s

19

primary

use

remains

agricultural

production.

20

2.

To

assist

in

the

promotion

of

agricultural

experiences,

21

a

county

shall

not

require

a

conditional

use

permit,

special

22

use

permit,

special

exception,

or

variance

for

an

agricultural

23

experiences

experience

on

property

of

which

the

primary

use

is

24

agricultural

production.

25

Sec.

53.

EFFECTIVE

DATE.

This

division

of

this

Act,

being

26

deemed

of

immediate

importance,

takes

effect

upon

enactment.

27

Sec.

54.

APPLICABILITY.

Any

conditional

use

permit,

28

special

use

permit,

special

exception,

or

variance

described

29

in

section

335.28,

as

amended

by

this

division

of

this

Act,

is

30

void

and

unenforceable.

31

DIVISION

IX

32

PROPERTY

TAX

EXEMPTION

——

QUALIFIED

ABOVEGROUND

STORAGE

TANKS

33

Sec.

55.

Section

427A.1,

Code

2026,

is

amended

by

adding

the

34

following

new

subsection:

35

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NEW

SUBSECTION

.

6A.

Notwithstanding

the

other

provisions

1

of

this

section,

an

aboveground

storage

tank

with

a

capacity

2

of

ninety-one

thousand

gallons

or

less,

no

matter

the

use

or

3

intended

use

on

the

subject

property,

shall

not

be

assessed

and

4

taxed

as

real

property.

5

Sec.

56.

IMPLEMENTATION.

Section

25B.7

shall

not

apply

to

6

this

division

of

this

Act.

7

Sec.

57.

EFFECTIVE

DATE.

This

division

of

this

Act,

being

8

deemed

of

immediate

importance,

takes

effect

upon

enactment.

9

Sec.

58.

RETROACTIVE

APPLICABILITY.

This

division

of

this

10

Act

applies

retroactively

to

assessment

years

beginning

on

or

11

after

January

1,

2026.

12

DIVISION

X

13

EXCISE

TAX

ELIMINATION

——

GRAIN

HANDLING

14

Sec.

59.

Section

445.3,

subsection

2,

Code

2026,

is

amended

15

to

read

as

follows:

16

2.

a.

The

commencement

of

actions

for

ad

valorem

taxes

17

authorized

under

this

section

shall

not

begin

until

the

18

issuance

of

a

tax

sale

certificate

under

the

requirements

of

19

section

446.19

.

The

commencement

of

actions

for

all

other

20

taxes

authorized

under

this

section

shall

not

begin

until

ten

21

days

after

the

publication

of

tax

sale

under

the

requirements

22

of

section

446.9,

subsection

2

.

This

subsection

23

b.

Paragraph

“a”

does

not

apply

to

the

collection

of

ad

24

valorem

taxes

under

section

445.32

,

and

grain

handling

taxes

25

under

section

428.35

.

26

Sec.

60.

REPEAL.

Section

428.35,

Code

2026,

is

repealed.

27

Sec.

61.

IMPLEMENTATION.

Section

25B.7

shall

not

apply

to

28

the

property

tax

exemption

enacted

in

this

Act.

29

Sec.

62.

APPLICABILITY.

This

division

of

this

Act

applies

30

to

tax

years

beginning

on

or

after

January

1,

2027.

31

DIVISION

XI

32

SALES

AND

USE

TAX

EXEMPTION

——

HONEYBEES

33

Sec.

63.

Section

423.3,

Code

2026,

is

amended

by

adding

the

34

following

new

subsection:

35

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2340

NEW

SUBSECTION

.

111.

The

sales

price

of

honeybees.

1

DIVISION

XII

2

INCOME

TAX

EXEMPTIONS

3

PART

A

4

FARM

TENANCIES

5

Sec.

64.

Section

422.7,

subsection

14,

paragraph

e,

Code

6

2026,

is

amended

by

striking

the

paragraph

and

inserting

in

7

lieu

thereof

the

following:

8

e.

Net

income

from

a

farm

tenancy

agreement

earned,

9

received,

or

reported

by

an

entity

taxed

as

a

disregarded

10

entity,

partnership

for

federal

tax

purposes,

an

S

corporation,

11

a

trust,

or

estate

is

eligible

for

the

election

and

deduction

12

in

this

subsection

for

the

portion

of

net

income

derived

from

13

a

farm

tenancy

agreement

if

the

eligible

individual

receives

14

or

is

entitled

to

receive

the

portion

of

net

income

through

15

distributions

from

an

entity

taxed

as

a

disregarded

entity,

16

a

partnership,

an

S

corporation,

a

trust,

or

an

estate,

to

17

the

same

extent

that

an

eligible

individual

could

subtract

18

net

income

received

directly

from

the

farm

tenant

rather

than

19

passing

to

the

eligible

individual

through

an

entity

taxed

20

as

a

disregarded

entity,

a

partnership,

an

S

corporation,

a

21

trust,

or

an

estate.

For

purposes

of

this

paragraph,

net

22

income

accruing

to

a

grantor

trust

or

to

a

business

entity

23

that

is

a

disregarded

entity

shall

be

deemed

to

have

been

24

distributed

to

its

sole

owner

to

the

extent

the

sole

owner

of

25

such

disregarded

entity

or

trust

has

the

right

to

withdraw

or

26

compel

distribution

of

such

net

income.

27

Sec.

65.

EFFECTIVE

DATE.

This

part

of

this

division

of

this

28

Act

takes

effect

January

1,

2027.

29

Sec.

66.

APPLICABILITY.

This

part

of

this

division

of

this

30

Act

applies

to

tax

years

beginning

on

or

after

January

1,

2027.

31

PART

B

32

VETERINARY

PRACTICE

33

Sec.

67.

Section

422.7,

Code

2026,

is

amended

by

adding

the

34

following

new

subsection:

35

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NEW

SUBSECTION

.

46.

a.

(1)

Subtract,

to

the

extent

1

included,

loan

repayments

received

under

a

program

agreement

2

entered

into

by

a

taxpayer

who

is

a

loan

repayment

recipient

3

and

the

Iowa

college

student

aid

commission

pursuant

to

section

4

256.226,

if

the

taxpayer

fulfills

the

obligation

to

engage

in

5

the

practice

of

veterinary

medicine

according

to

terms

of

that

6

section

and

the

program

agreement.

7

(2)

The

amount

subtracted

in

subparagraph

(1)

shall

not

8

exceed

the

following

limits:

9

(a)

For

any

tax

year,

fifteen

thousand

dollars.

10

(b)

For

the

aggregate

of

all

tax

years,

sixty

thousand

11

dollars.

12

(c)

In

any

case,

the

amount

of

the

outstanding

eligible

13

loan.

14

b.

(1)

Subtract,

to

the

extent

included,

loan

repayments

15

received

on

an

eligible

loan

under

an

agreement

between

a

16

taxpayer

and

a

nongovernmental

entity.

If

the

taxpayer

meets

17

the

eligibility

requirements

of

section

256.226

and

fulfills

18

the

obligation

to

engage

in

the

practice

of

veterinary

medicine

19

according

to

the

terms

of

that

section

and

the

agreement.

20

(2)

The

amount

subtracted

in

subparagraph

(1)

shall

not

21

exceed

the

following

limits:

22

(a)

For

any

tax

year,

fifteen

thousand

dollars.

23

(b)

For

the

aggregate

of

all

tax

years,

sixty

thousand

24

dollars.

25

(c)

In

any

case,

the

amount

of

the

outstanding

eligible

26

loan.

27

c.

(1)

Subtract,

to

the

extent

included,

loan

repayments

28

and

related

tax

liability

payments

received

by

a

taxpayer

29

pursuant

to

the

federal

veterinary

medicine

loan

repayment

30

program

authorized

by

7

U.S.C.

§3151a

and

administered

by

the

31

United

States

department

of

agriculture,

national

institute

of

32

food

and

agriculture.

33

(2)

The

amount

subtracted

in

subparagraph

(1)

shall

not

34

exceed

the

amount

of

the

loan

and

related

tax

liability

35

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payments

or

fifty-five

thousand

six

hundred

dollars

per

year,

1

whichever

is

less.

2

EXPLANATION

3

The

inclusion

of

this

explanation

does

not

constitute

agreement

with

4

the

explanation’s

substance

by

the

members

of

the

general

assembly.

5

GENERAL.

This

bill

amends

a

number

of

Code

chapters

6

relating

to

agriculture,

including

providing

for

the

powers

and

7

duties

of

the

department

of

agriculture

and

land

stewardship

8

(DALS).

The

bill

provides

for

the

promotion

and

regulation

9

of

commodities

and

regulation

by

DALS,

including

fees,

and

10

the

transportation

of

agricultural

items

by

the

department

11

of

transportation

(DOT).

The

bill

provides

for

the

use

of

12

agricultural

land,

including

agricultural

tourism.

The

bill

13

also

provides

for

taxation,

including

property

taxes,

the

14

excise

tax,

the

sales

and

use

tax,

and

income

tax.

15

DIVISION

I

——

DEPARTMENT

OF

AGRICULTURE

AND

LAND

STEWARDSHIP

16

——

PROMOTION

——

RENEWABLE

FUEL

INFRASTRUCTURE

——

BACKGROUND.

17

Code

chapter

159A,

subchapter

II,

authorizes

DALS

to

administer

18

a

renewable

fuel

infrastructure

program

for

retail

motor

fuel

19

sites

(Code

section

159.14)

and

a

renewable

fuel

infrastructure

20

program

for

biodiesel

terminal

facilities

(Code

section

21

159A.15).

The

purpose

of

the

program

is

to

finance

the

22

improvement

of

facilities

used

to

store,

blend,

or

dispense

23

renewable

fuels,

commonly

derived

from

corn

or

soybeans.

The

24

programs

are

supported

by

the

renewable

fuel

infrastructure

25

fund

(Code

section

159A.16),

which

is

appropriated

$5

million

26

each

fiscal

year

(Code

section

159.17).

27

DIVISION

I

——

DEPARTMENT

OF

AGRICULTURE

AND

LAND

STEWARDSHIP

28

——

PROMOTION

——

RENEWABLE

FUEL

INFRASTRUCTURE

——

BILL’S

29

PROVISIONS.

This

division

increases

the

amount

of

moneys

30

appropriated

from

the

renewable

fuel

infrastructure

fund

each

31

fiscal

year

for

administrative

costs

incurred

by

DALS

from

32

$100,000

to

$150,000.

33

DIVISION

II

——

DEPARTMENT

OF

AGRICULTURE

AND

LAND

34

STEWARDSHIP

——

PROMOTION

——

BACKGROUND.

Code

chapter

189

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2340

authorizes

DALS

to

administer

a

number

of

programs

providing

1

for

the

promotion

of

agriculture

in

this

state.

The

Code

2

chapter

provides

for

the

financing

of

the

programs,

including

3

the

creation

of

a

choose

Iowa

fund

(Code

section

187.201).

The

4

Code

chapter

provides

for

a

choose

Iowa

promotional

program

5

that

supports

the

marketing

of

agricultural

commodities

and

6

processed

products

originating

from

Iowa

farms

(Code

section

7

187.301).

The

choose

Iowa

program

allows

a

person

to

register

8

as

a

seller

of

Iowa

commodities

and

products

and

receives

the

9

right

to

use

a

legally

protected

logo

under

a

paid

license

10

(Code

sections

187.302

and

187.303).

The

Code

chapter

includes

11

a

choose

Iowa

food

purchasing

program

that

supports

Iowa

12

food

banks

and

emergency

feeding

operations

(Code

section

13

187.311).

A

farm

or

business

enrolled

in

the

choose

Iowa

14

program

is

provided

a

preference

to

participate

in

the

choose

15

Iowa

food

purchasing

program.

Under

Code

chapter

190A,

DALS

16

also

administers

a

farm-to-school

program

to

support

schools

17

and

school

districts

in

purchasing

food

products

derived

from

18

food

commodities

produced

on

Iowa

farms

(Code

section

190A.6).

19

A

dairy

innovation

program

authorizes

DALS

to

provide

financing

20

to

an

eligible

business

in

the

form

of

a

grant,

low-interest

21

loan,

or

forgivable

loan

in

order

to

expand

dairy

processing

22

capacity

in

Iowa

(Code

section

187.311).

23

PART

A

——

GENERAL

——

BILL’S

PROVISIONS.

This

part

creates

24

an

exception

to

a

provision

that

restricts

state

agencies

from

25

engaging

in

an

activity

that

competes

with

a

private

enterprise

26

(Code

section

23A.2).

The

part

amends

the

choose

Iowa

program

27

by

providing

for

the

enrollment

of

persons

actively

engaged

in

28

producing,

processing,

or

marketing

Iowa

agricultural

products.

29

PART

B

——

CHOOSE

IOWA

PROMOTIONAL

PROGRAMS

——

BILL’S

30

PROVISIONS.

Under

this

part,

DALS

may

adopt

administrative

31

rules

providing

for

criteria

for

enrollment

in

the

choose

32

Iowa

promotion

program.

The

part

establishes

a

choose

Iowa

33

school

purchasing

program

based

on

the

current

farm-to-school

34

program,

which

is

eliminated.

Under

the

new

program,

an

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eligible

participant

is

reimbursed

on

a

matching

basis

with

1

DALS

contributing

$1

for

every

$1

expended

by

the

eligible

2

participant.

The

division

renames

the

choose

Iowa

food

3

purchasing

program

to

the

choose

Iowa

food

bank

program.

The

4

part

provides

that

to

participate

in

the

program,

a

farm

or

5

business

must

be

enrolled

as

a

member

of

the

choose

Iowa

6

promotional

program.

The

part

eliminates

a

provision

providing

7

that

not

more

than

$200,000

may

be

used

by

DALS

to

reimburse

8

Iowa

food

banks

and

Iowa

emergency

feeding

organizations.

The

9

part

eliminates

a

provision

that

terminates

the

program

on

July

10

1,

2030.

Finally,

the

part

transfers

several

Code

sections

11

including

Code

section

159.25,

which

establishes

an

Iowa

seal

12

for

agricultural

products.

13

PART

C

——

INNOVATION

AND

REVITALIZATION

PROGRAMS

——

BILL’S

14

PROVISIONS.

This

part

provides

priority

to

a

beginning

15

farmer

applying

to

participate

in

the

dairy

innovation

and

16

revitalization

program.

The

part

creates

a

butchery

innovation

17

revitalization

program,

modeled

on

the

dairy

innovation

18

and

revitalization

program,

that

promotes

the

development,

19

modernization,

and

expansion

of

this

state’s

butchery

industry.

20

The

part

also

eliminates

a

similar

program

administered

by

the

21

economic

development

authority

(Code

section

15E.370).

22

DIVISION

III

——

DEPARTMENT

OF

AGRICULTURE

AND

LAND

23

STEWARDSHIP

REGULATION

——

ANIMAL

HEALTH

——

BACKGROUND.

Code

24

chapter

163

authorizes

DALS

to

regulate

animal

health

and

25

specifically

control

infectious

or

contagious

diseases

26

(disease)

afflicting

livestock

populations

(Code

chapter

163).

27

The

term

“control”

refers

to

prevention,

suppression,

or

28

eradication

efforts

(Code

section

163.2).

29

DIVISION

III

——

ANIMAL

HEALTH

——

BILL’S

PROVISIONS.

This

30

division

authorizes

DALS

to

lease

facilities

in

order

to

31

control

an

infectious

or

contagious

disease

or

provide

for

32

a

foreign

animal

disease

preparedness

and

response

effort

33

(Code

section

162.2A).

The

division

also

provides

that

34

notwithstanding

Code

chapter

22,

information

collected

by

DALS

35

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relating

to

such

disease

is

confidential,

if

the

information

1

identifies

the

name,

address,

and

contact

information

of

a

2

person

owning

or

caring

for

an

animal

suspected

of

or

being

3

affected

with

a

disease;

or

any

location

where

an

animal

4

suspected

of

or

being

affected

with

the

disease

has

been

kept.

5

DIVISION

IV

——

DEPARTMENT

OF

AGRICULTURE

AND

LAND

6

STEWARDSHIP

REGULATION

——

WEIGHTS

AND

MEASURES

——

BACKGROUND.

7

DALS

is

authorized

to

regulate

standard

weights

and

measures

8

under

a

number

of

Code

chapters,

with

many

of

its

provisions

9

first

published

in

the

1851

Code

(Code

chapters

210,

213,

214,

10

and

215).

Generally,

standards

must

comply

with

or

be

supplied

11

by

the

federal

government

or

approved

as

being

in

compliance

12

with

those

established

by

a

United

States

agency,

the

national

13

institute

of

standards

and

technology

(NIST).

Many

of

Iowa’s

14

Code

provisions

regulating

standards

provide

for

the

inspection

15

of

commercial

weighing

and

measuring

devices

that

are

used

16

to

establish

size,

quantity,

area,

or

another

quantitative

17

measurement

of

a

commodity

when

sold

(Code

section

215.1).

18

DIVISION

IV

——

DEPARTMENT

OF

AGRICULTURE

AND

LAND

19

STEWARDSHIP

——

REGULATION

——

WEIGHTS

AND

MEASURES

——

BILL’S

20

PROVISIONS.

This

division

provides

that

the

secretary

of

21

agriculture

may

designate

the

bureau

chief

of

the

department’s

22

weights

and

measures

bureau

to

act

as

the

state

metrologist

23

of

weights

and

measures

(Code

section

213.1).

The

state

24

metrologist

is

authorized

to

cooperate

with

NIST.

A

provision

25

requiring

all

weights

and

measures

sealed

by

the

state

26

metrologist

to

be

impressed

with

the

word

“Iowa”

is

eliminated.

27

The

division

provides

that

DALS

is

no

longer

required

to

28

inspect

all

commercial

weighing

and

measuring

devices

unless

29

it

receives

a

complaint

(Code

section

215.1A).

In

lieu

of

30

an

inspection,

DALS

may

order

the

owner

of

the

device

or

a

31

service

agency

that

installed,

serviced,

or

repaired

the

32

device,

to

deliver

to

DALS

one

or

more

of

the

service

agency’s

33

most

recent

test

reports

documenting

the

device’s

accuracy.

34

Several

exceptions

apply

that

require

the

inspection

of

a

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device

including

a

motor

fuel

pump

(Code

section

214.11),

a

1

moisture-measuring

device

(Code

section

215A.2),

and

a

charging

2

station

(Code

section

452A.41).

The

division

makes

several

3

changes

to

enhance

the

Code’s

readability

including

updating

4

or

correcting

references

to

Code

chapter

215.

The

division

5

eliminates

a

provision

that

requires

DALS

to

conduct

a

test

6

of

a

measuring

device

based

on

a

request

of

any

person

(Code

7

section

213.3)

and

a

provision

requiring

a

city

to

pay

for

8

expenses

directly

incurred

in

furnishing

a

city

with

standards

9

(Code

section

213.7).

10

DIVISION

V

——

DEPARTMENT

OF

AGRICULTURE

AND

LAND

STEWARDSHIP

11

REGULATION

——

GRAIN

MARKETING

——

BACKGROUND.

DALS

regulates

12

grain

marketing

transactions

under

three

interrelated

13

Code

chapters.

The

first

two

Code

chapters

regulate

grain

14

marketers,

including

Code

chapter

203

providing

for

the

15

regulation

of

a

grain

dealer

purchasing

grain

from

a

seller

and

16

Code

chapter

203C

providing

for

the

regulation

of

a

warehouse

17

operator

storing

grain

for

a

depositor.

Code

chapter

203D

18

establishes

the

grain

depositors

and

sellers

indemnity

fund

19

(indemnity

fund)

created

to

indemnify

a

seller

or

depositor

20

against

a

financial

loss

due

to

the

management

of

the

grain

by

21

grain

dealer

or

warehouse

operator.

22

Under

Code

chapter

203,

in

a

cash

sale

transaction,

a

grain

23

dealer

must

pay

the

seller

the

purchase

price

for

grain

upon

24

the

grain’s

delivery

or

upon

demand

for

payment

by

the

seller

25

(Code

section

203.8).

Delivery

occurs

when

title

to

and

26

possession

of

the

grain

is

transferred

to

the

grain

dealer

or

27

another

person

in

accordance

with

the

terms

of

the

contract

28

(Code

section

203.8).

One

special

type

of

sale

is

the

use

29

of

a

credit-sale

contract

in

which

a

grain

dealer

enters

a

30

contract

with

a

seller

for

the

sale

of

grain

and

delivery

of

31

the

grain

has

occurred

but

payment

has

not

been

made

either

32

because

the

price

has

not

been

agreed

to

(a

deferred-pricing

33

contract)

or

the

price

has

been

agreed

to

but

payment

is

to

34

be

made

more

than

30

days

later

(a

deferred-payment

contract)

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(Code

section

203.15).

Under

both

Code

chapters

203

and

1

203C,

DALS

regulates

a

grain

dealer

and

warehouse

operator

by

2

issuing

a

license

and

conducting

inspections

of

their

business

3

operations.

A

grain

dealer

or

warehouse

operator

must

be

4

issued

either

a

class

1

or

class

2

license

based

on

the

size

5

of

the

business

operation

with

a

class

1

license

requiring

6

higher

net

worth

requirements

(Code

sections

203.3

and

203C.6).

7

However,

a

class

1

license

is

required

for

a

grain

dealer

who

8

enters

into

a

credit-sale

contract

regardless

of

the

size

of

9

the

grain

dealer’s

operation.

A

class

1

or

class

2

licensee

10

must

annually

submit

to

DALS

a

financial

statement

accompanied

11

by

an

unqualified

opinion

based

upon

an

audit

performed

by

a

12

certified

public

accountant

(CPA)

licensed

in

this

state.

In

13

2025,

the

general

assembly

enacted

2025

Iowa

Acts,

chapter

105

14

(2025

Act),

which

eliminated

provisions

that

allowed

a

licensed

15

grain

dealer

or

licensed

grain

warehouse

operator

to

submit

a

16

financial

statement

accompanied

by

a

report

of

a

state-licensed

17

CPA

based

upon

a

review

in

lieu

of

an

unqualified

opinion.

The

18

2025

Act

allowed

the

indemnity

fund

to

cover

a

loss

arising

19

from

a

deferred-payment

contract

(Code

sections

203D.6

and

20

203D.6A).

The

2025

Act

also

provided

a

separate

process

for

21

a

seller

to

be

indemnified

for

a

loss

resulting

from

the

22

seller

having

received

from

the

grain

dealer

an

amount

from

23

the

purchased

grain

that

the

seller

was

required

to

later

pay

24

back

to

the

grain

dealer’s

bankruptcy

estate

(Code

section

25

203D.6A).

A

license

of

a

grain

dealer

or

warehouse

operator

26

may

cease

due

to

any

one

of

three

causes,

including

revocation

27

by

DALS,

cancellation

by

the

grain

dealer,

or

the

expiration

28

of

the

license

by

operation

of

law.

All

of

these

causes

are

29

covered

under

Code

sections

203.10

and

203C.10.

Upon

any

of

30

these

causes,

a

seller

may

claim

the

purchase

price

for

the

31

sold

grain,

which

may

trigger

a

claim

for

a

loss

under

the

32

indemnity

fund.

33

DIVISION

V

——

DEPARTMENT

OF

AGRICULTURE

AND

LAND

STEWARDSHIP

34

——

REGULATION

——

GRAIN

MARKETING

——

BILL’S

PROVISIONS.

Parts

A

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and

B

of

this

division

amend

Code

sections

203.3

and

203C.6A

by

1

allowing

a

grain

dealer

(except

a

grain

dealer

entering

into

a

2

credit-sale

contract)

or

a

warehouse

operator

to

again

submit

a

3

financial

statement

accompanied

by

a

report

of

a

state-licensed

4

CPA

based

upon

a

review

in

lieu

of

an

unqualified

opinion.

5

Parts

A

and

B

of

the

division

amend

Code

section

203.8

by

6

providing

that

unless

title

to

grain

was

previously

transferred

7

pursuant

to

an

ordinary

cash

sale

contract,

title

to

grain

8

sold

by

credit-sale

contract

is

deemed

to

have

transferred

to

9

the

grain

dealer

upon

two

conditions:

(1)

the

credit-sale

10

contract

is

signed

by

both

the

grain

dealer

and

the

seller

11

and

(2)

the

grain

dealer

or

another

person

has

possession

of

12

the

grain

in

accordance

with

the

terms

of

the

credit-sale

13

contract.

The

bill

provides

that

a

claim

for

a

loss

incurred

14

by

a

seller

or

depositor

may

be

triggered

by

the

filing

of

a

15

bankruptcy

petition

by

a

grain

dealer

or

warehouse

operator.

16

The

bill

also

amends

a

number

of

provisions

that

refer

to

the

17

revocation,

cancellation,

or

expiration

of

the

license

by

18

instead

referring

to

either

Code

section

203.10

or

203C.10,

19

which

describe

those

types

of

actions.

Part

C

of

the

division

20

amends

Code

section

203D.6

by

providing

for

the

indemnification

21

of

a

seller

for

grain

purchased

by

a

grain

dealer

that

the

22

seller

was

required

to

pay

back

later

in

bankruptcy.

The

claim

23

may

proceed

upon

a

determination

that

an

eligible

repayment

24

claim

was

filed

with

DALS

by

the

seller

as

required

by

statute.

25

Finally,

part

C

of

the

division

amends

Code

section

203D.6A

26

by

providing

for

the

timeliness

of

a

repayment

claim

in

the

27

case

of

a

bankruptcy

court’s

default

judgment.

In

that

case,

28

the

seller

must

file

a

claim

not

later

than

60

days

after

29

the

court’s

judgment

or

a

settlement

agreement

is

approved,

30

whichever

is

later.

31

DIVISION

VI

——

DEPARTMENT

OF

TRANSPORTATION

REGULATION

——

32

MOTOR

VEHICLES.

This

division

provides

for

the

regulation

of

33

persons

moving

agricultural

items

on

state

highways

and

roads.

34

PART

A

——

MILK

HAULERS

——

BACKGROUND.

Under

Code

chapter

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321E,

the

department

of

transportation

(DOT)

and

local

1

authorities

regulate

the

weight

of

motor

vehicles

traveling

on

2

a

street,

road,

or

highway,

including

by

issuing

permits

(Code

3

section

321E.2).

DOT

is

authorized

to

issue

annual

permits

4

for

the

operation

of

vehicles

or

combinations

of

vehicles

5

transporting

fluid

milk

products

to

or

from

a

milk

plant,

6

receiving

station,

or

transfer

station.

The

weight

limitation

7

is

96,000

pounds

on

primary

roads

and

primary

road

extensions

8

in

cities.

A

person

who

violates

the

weight

provisions

is

9

subject

to

a

fine

according

to

a

schedule

based

on

the

number

10

of

pounds

of

overload

beginning

at

$12.

11

PART

A

——

MILK

HAULERS

——

BILL’S

PROVISIONS.

This

part

12

increases

the

weight

limit

to

136,000

pounds.

DOT

is

13

required

to

adopt

rules

governing

minimum

distances

for

axle

14

configurations.

The

part

takes

effect

January

1,

2027.

15

PART

B

——

IMPLEMENTS

OF

HUSBANDRY

——

BACKGROUND.

Code

16

section

321.457

regulates

the

maximum

length

of

a

motor

17

vehicle

or

combination

of

vehicles

operated

on

the

highways

18

of

this

state.

A

trailer

or

semitrailer

cannot

have

an

19

overall

length

in

excess

of

53

feet

when

operating

in

a

truck

20

tractor-semitrailer

combination.

However,

a

lowboy

semitrailer

21

that

is

designed

and

exclusively

used

for

the

transportation

of

22

construction

equipment

may

have

an

overall

length

not

in

excess

23

of

57

feet.

A

person

who

violates

the

length

requirement

is

24

subject

to

a

scheduled

fine

of

$260

(Code

section

805.8A).

25

PART

B

——

IMPLEMENTS

OF

HUSBANDRY

——

BILL’S

PROVISIONS.

This

26

part

provides

that

an

implement

of

husbandry

(a

vehicle

or

27

equipment

used

in

agricultural

production)

has

the

same

feet

28

requirement

as

construction

equipment.

29

DIVISION

VII

——

AGRICULTURAL

TOURISM

——

BACKGROUND.

Code

30

chapter

673A,

referred

to

as

the

“Iowa

Agricultural

Tourism

31

Promotion

Act”

(Code

section

673A.1),

limits

the

liability

of

32

certain

persons

involved

in

agricultural

tourism

on

a

farm

33

(agricultural

tourism

farm)

when

a

cause

of

action

by

a

visitor

34

to

the

farm

(agricultural

tourist)

alleges

an

injury,

loss,

or

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death

due

to

any

of

the

following:

(1)

an

inherent

risk

of

1

farming

associated

with

a

farming

activity,

(2)

the

failure

of

2

the

agricultural

tourist

to

comply

with

an

instruction

while

3

visiting

the

agricultural

tourism

farm,

or

(3)

the

injury,

4

loss,

or

death

occurred

at

a

place

a

reasonable

person

would

5

not

enter,

which

may

be

based

on

a

posted

notice

(Code

section

6

673A.4).

7

DIVISION

VII

——

AGRICULTURAL

TOURISM

——

BILL’S

PROVISIONS.

8

This

division

expands

the

scope

of

the

liability

protection

9

provided

to

persons

engaged

in

agricultural

tourism

by

amending

10

definitions

in

Code

section

673A.3.

The

division

provides

that

11

a

farm

includes

a

tree

farm,

and

that

a

farm

crop

includes

12

a

plant

used

for

energy

or

decoration.

The

division

also

13

provides

that

a

farm

crop

described

as

edible

or

ornamental

14

produce

includes

nuts,

maple

syrup,

mushrooms,

and

Christmas

15

trees.

Finally,

a

farm

crop

includes

lumber,

pulpwood,

16

cordwood,

and

honey.

17

DIVISION

VIII

——

LAND

USE

——

BACKGROUND.

Code

chapter

335

18

provides

for

county

zoning.

Code

section

335.27

provides

that

19

a

county

zoning

ordinance

does

not

apply

to

land,

a

farm

house,

20

farm

barn,

farm

outbuilding,

or

other

building

or

structure

21

that

is

primarily

adapted

for

an

agricultural

purpose.

Code

22

chapter

335.28

provides

that

a

county

cannot

require

a

23

conditional

use

permit,

special

use

permit,

special

exception,

24

or

variance

for

agricultural

experiences

on

property

primarily

25

used

for

agricultural

production.

An

agricultural

experience

26

is

defined

to

include

an

agriculture-related

activity,

as

a

27

secondary

use

in

conjunction

with

agricultural

production,

on

a

28

farm,

which

activity

is

open

to

the

public.

29

DIVISION

VIII

——

LAND

USE

——

BILL’S

PROVISIONS.

This

30

division

amends

Code

section

335.2

by

providing

that

an

31

agricultural

purpose

includes

an

agricultural

tourism

32

activity

or

event,

value-added

agricultural

processing,

33

direct-to-consumer

marketing,

or

other

farm-based

enterprise

34

that

supports

the

economic

viability

of

a

farm.

The

division

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amends

Code

section

335.28

by

providing

that

an

agricultural

1

experience

includes

tourism

activities

and

events,

such

as

2

recreational,

entertainment,

dining,

celebratory,

and

overnight

3

lodging

opportunities

offered

on

a

working

farm,

so

long

as

4

the

farm’s

primary

use

remains

agricultural

production.

The

5

division

takes

effect

upon

enactment.

6

DIVISION

IX

——

PROPERTY

TAX

EXEMPTION

——

QUALIFIED

7

ABOVEGROUND

STORAGE

TANKS

——

BACKGROUND.

Generally,

real

8

property

subject

to

property

tax

is

assessed

locally

by

either

9

a

county

or

city

assessor

(Code

section

441.1).

Code

section

10

427A.2

provides

that

personal

property

is

not

subject

to

11

property

tax

and

Code

section

427A.1

provides

a

descriptive

12

list

of

property

that

is

subject

to

assessment

and

taxation

as

13

real

property

(buildings,

structures,

or

improvement

attached

14

to

the

land,

or

placed

upon

a

foundation

whether

or

not

15

attached

to

the

foundation).

The

Code

section

also

provides

a

16

description

of

real

property

that

is

not

subject

to

assessment

17

and

taxation

as

real

property.

18

DIVISION

IX

——

PROPERTY

TAX

EXEMPTION

——

QUALIFIED

19

ABOVEGROUND

STORAGE

TANKS

——

BILL’S

PROVISIONS.

This

20

division

provides

another

exemption

applicable

to

a

qualified

21

aboveground

storage

tank

that

would

otherwise

be

subject

to

22

assessment

and

taxation

as

real

property.

The

aboveground

23

storage

tank

must

have

a

capacity

of

91,000

gallons

or

less,

24

regardless

of

its

use.

The

division

makes

inapplicable

a

25

provision

in

the

“State

Mandates

Act”

(Code

chapter

25B)

that

26

governs

the

funding

of

a

property

tax

credit

or

exemption

27

(credit

or

exemption).

Specifically,

Code

section

25B.7

28

provides

that

if

a

state

enacts

legislation

creating

a

credit

29

or

exemption,

a

political

subdivision

(county,

city,

or

school

30

district)

is

required

to

extend

to

the

taxpayer

only

that

31

portion

of

the

credit

or

exemption

estimated

by

the

department

32

of

revenue

to

be

funded

by

a

state

appropriation.

The

division

33

takes

effect

upon

enactment

and

applies

retroactively

to

34

assessment

years

beginning

on

or

after

January

1,

2025.

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DIVISION

X

——

EXCISE

TAX

ELIMINATION

——

GRAIN

HANDLING

1

——

BACKGROUND.

Code

section

428.35

relates

to

the

grain

2

handling

excise

tax

of

one-fourth

mill

per

bushel

upon

all

3

grain

handled

(1/40

of

1

cent

per

bushel).

For

purposes

of

4

the

excise

tax,

“handling

or

handled”

means

the

receiving

of

5

grain

at

or

in

each

elevator,

warehouse,

mill,

processing

6

plant,

or

other

facility

in

this

state

in

which

it

is

received

7

for

storage,

accumulation,

sale,

processing,

or

any

other

8

purpose.

Generally,

real

property

subject

to

property

tax

is

9

assessed

locally

by

either

a

county

or

city

assessor

(Code

10

section

441.1).

The

amount

of

excise

tax

is

calculated

on

the

11

basis

of

a

statement

prepared

by

the

department

of

revenue

and

12

filed

by

the

person

handling

the

grain

and

is

due

60

days

after

13

the

start

of

the

calendar

year.

The

statement

records

the

14

total

number

of

bushels

handled

by

the

person

during

the

prior

15

calendar

year.

The

excise

tax

is

entered

on

the

tax

list

of

the

16

taxing

district

and

revenue

collected

from

the

excise

tax

is

17

distributed

to

the

various

taxing

authorities

within

the

taxing

18

district

in

the

same

manner

as

general

property

taxes.

19

DIVISION

X

——

EXCISE

TAX

ELIMINATION

——

GRAIN

HANDLING

——

20

BILL’S

PROVISIONS.

This

division

eliminates

the

special

excise

21

tax

provision

on

the

handling

of

grain

on

January

1,

2027,

and

22

the

excise

tax

is

no

longer

assessable

for

grain

handled

on

or

23

after

that

date.

The

division

makes

inapplicable

a

provision

24

in

the

“State

Mandates

Act”

that

governs

the

funding

of

a

25

property

tax

credit

or

exemption.

26

DIVISION

XI

——

SALES

AND

USE

TAX

EXEMPTION

——

HONEYBEES

——

27

BACKGROUND.

Code

chapter

423

provides

for

Iowa’s

streamlined

28

sales

and

use

tax

provisions.

The

state

sales

tax

is

imposed

29

on

the

sales

price

of

all

sales

of

tangible

personal

property

30

and

from

the

furnishing

of

enumerated

services

sold

at

retail

31

to

the

ultimate

consumer

or

user

of

the

property

or

services

32

(Code

section

423.2).

As

a

complement

to

the

sales

tax,

the

33

use

tax

is

imposed

on

the

purchase

price

of

all

tangible

34

personal

property

or

enumerated

services

purchased

for

use

in

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Iowa

and

used

in

Iowa.

There

are

a

number

of

exemptions

to

the

1

sales

tax

and,

with

a

few

exceptions,

the

same

exemptions

apply

2

to

the

use

tax

(Code

section

423.5).

3

DIVISION

XI

——

SALES

AND

USE

TAX

EXEMPTION

——

HONEYBEES

——

4

BILL’S

PROVISIONS.

This

division

provides

a

new

sales

and

use

5

tax

exemption

for

the

sale

of

honeybees.

6

DIVISION

XII

——

INCOME

TAX

EXEMPTION

——

BACKGROUND.

Code

7

chapter

422

provides

for

an

Iowa

income

tax

imposed

on

taxable

8

income

of

individuals

who

are

residents

and

nonresidents

9

of

this

state

(Code

section

422.5).

The

Iowa

individual

10

income

tax

is

calculated

based

on

the

taxpayer’s

federal

11

adjusted

gross

income,

with

designated

adjustments

including

12

subtractions,

that

determine

net

income

in

order

to

compute

13

state

tax

liability

(Code

section

422.7).

14

PART

A

——

INCOME

TAX

EXEMPTION

——

FARM

TENANCIES

——

15

BACKGROUND.

A

retired

farmer

leasing

real

property

under

a

16

farm

tenancy

agreement

may

qualify

as

an

eligible

individual

17

electing

to

subtract

(exclude)

rent

payments

from

the

18

computation

of

net

income

(Code

section

422.7).

In

order

to

19

make

this

election,

the

retired

farmer

must

either

be

disabled

20

or

at

least

55

years

old.

In

addition,

the

retired

farmer

must

21

have

materially

participated

in

a

farming

business

for

10

years

22

in

the

aggregate,

and

held

the

leased

property

for

10

years

23

(Code

section

422.17).

A

farm

tenancy

agreement

is

a

writing

24

that

creates

a

leasehold

in

which

the

owner-lessor

transfers

25

that

property

to

a

tenant-lessee

for

farming

including

the

26

production

of

a

crop

or

livestock

(Code

chapter

562)

in

27

exchange

for

receiving

a

rent

payment,

including

on

a

cash

or

28

commodity

share

basis.

The

eligible

individual

is

prohibited

29

from

claiming

a

duplicative

tax

adjustment

under

(1)

the

30

capital

gains

exemption

for

the

sale

of

real

property

used

in

a

31

farming

business

(Code

section

422.7(13)),

or

(2)

the

beginning

32

farmer

tax

credit

for

the

lease

of

agricultural

assets

(Code

33

chapter

16,

subchapter

VIII,

part

5,

subpart

B).

34

PART

A

——

INCOME

TAX

EXEMPTION

——

FARM

TENANCIES

——

BILL’S

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PROVISIONS.

This

part

allows

a

retired

farmer

to

exclude

1

net

income

because

a

specific

legal

entity

rather

than

the

2

retired

farmer

is

the

holder

of

the

farm

tenancy

(leased

3

property).

An

individual

who

organizes

and

operates

a

business

4

under

one

of

several

types

of

recognized

legal

or

equitable

5

entities

may

shield

personal

assets

from

creditors

while

income

6

received

by

such

entity

is

attributed

(passes

through)

to

the

7

individual.

Specifically,

the

amended

provision

applies

to

net

8

income

received

by

a

partnership

(general

or

limited),

an

S

9

corporation,

or

a

trust

or

estate

(presumably

subject

to

the

10

restrictions

of

Code

chapters

9

and

9I).

In

addition,

the

11

part

expressly

recognizes

another

pass-through

entity

referred

12

to

as

a

“disregarded

entity”

(DRE).

Such

an

entity

must

be

13

recognized

under

state

law

(e.g.,

a

limited

liability

company

14

or

“LLC”).

The

equity

interest

(e.g.,

a

membership

interest

15

in

an

LLC)

must

be

owned

by

a

single

individual

or

a

spousal

16

couple.

Income

received

by

the

DRE

passes

through

the

entity

17

to

the

individual

or

spousal

couple.

The

part

provides

that

18

in

the

case

of

a

DRE

or

grantor

trust,

the

net

income

is

deemed

19

to

be

distributed

to

the

sole

owner.

The

part

takes

effect

20

January

1,

2027,

and

applies

to

tax

years

beginning

on

and

21

after

that

date.

22

PART

B

——

VETERINARY

PRACTICE

——

BACKGROUND.

Code

section

23

256.226

establishes

a

rural

veterinarian

loan

repayment

24

program

administered

by

the

college

student

aid

commission

25

(commission).

The

purpose

of

the

program

is

to

provide

for

26

the

repayment

of

a

student

loan

to

an

individual

who

agrees

27

to

practice

for

four

years

as

a

licensed

veterinarian

in

a

28

rural

area

referred

to

as

a

rural

service

commitment

area

29

or

a

veterinary

shortage

area

pursuant

to

a

loan

repayment

30

agreement.

The

amount

of

repayment

cannot

exceed

$15,000

31

annually

or

a

total

of

$60,000

or

the

amount

of

the

outstanding

32

eligible

loan.

33

PART

B

——

VETERINARY

PRACTICE

——

BILL’S

PROVISIONS.

This

34

part

allows

a

licensed

veterinarian

participating

in

the

rural

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veterinarian

loan

repayment

program

to

exclude

net

income

1

attributable

to

loan

payments

received

under

the

program,

2

subject

to

the

restrictions

provided

in

the

program.

The

3

amount

subject

to

the

exclusion

cannot

exceed

$15,000

per

tax

4

year,

and

an

aggregate

of

$60,000

for

all

tax

years.

However,

5

in

any

case,

the

excluded

amount

cannot

exceed

the

amount

of

6

the

outstanding

eligible

loan.

The

same

exclusion

applies

7

to

income

attributable

to

a

loan

repayment

received

from

8

two

alternative

sources.

The

first

alternative

source

is

a

9

nongovernmental

entity.

In

that

case,

the

taxpayer

must

meet

10

the

same

eligibility

requirements

and

is

subject

to

the

same

11

amount

limitations

as

applies

under

the

rural

veterinarian

12

loan

repayment

program

administered

by

the

commission.

The

13

second

alternative

source

is

under

the

federal

veterinary

14

medicine

loan

repayment

program

administered

by

the

United

15

States

department

of

agriculture.

In

that

case,

the

amount

is

16

limited

to

not

more

than

the

amount

of

the

loan

and

related

tax

17

liability

payments

or

$55,600

per

year,

whichever

is

less.

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