Bill Text: IA HF2439 | 2021-2022 | 89th General Assembly | Introduced


Bill Title: A bill for an act providing for programs and regulations administered and enforced by the department of agriculture and land stewardship, providing fees, providing penalties, and making penalties applicable.(Formerly HSB 673; See HF 2572, HF 2581.)

Spectrum: Committee Bill

Status: (Introduced - Dead) 2022-04-05 - Withdrawn. H.J. 811. [HF2439 Detail]

Download: Iowa-2021-HF2439-Introduced.html
House File 2439 - Introduced HOUSE FILE 2439 BY COMMITTEE ON AGRICULTURE (SUCCESSOR TO HSB 673) A BILL FOR An Act providing for programs and regulations administered 1 and enforced by the department of agriculture and land 2 stewardship, providing fees, providing penalties, and making 3 penalties applicable. 4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 5 TLSB 5280HV (2) 89 da/ns
H.F. 2439 DIVISION I 1 CHOOSE IOWA PROMOTIONAL PROGRAM 2 Section 1. Section 159.20, Code 2022, is amended by adding 3 the following new subsection: 4 NEW SUBSECTION . 1A. The department shall establish and 5 administer a choose Iowa promotional program as provided in 6 part 2 of this subchapter, in order to provide consumers 7 a choice in purchasing food items that originate as an 8 agricultural commodity produced on Iowa farms. 9 Sec. 2. NEW SECTION . 159.26 Definitions. 10 As used in this part: 11 1. “Food item” means any of the following: 12 a. A perishable item derived from an agricultural commodity, 13 or processed from an agricultural commodity, that is fit for 14 human consumption. 15 b. Honey produced from bees in a managed beehive. 16 2. “Iowa farm” means land in this state used to produce an 17 agricultural commodity. 18 3. “Process” means to prepare a food item in a manner that 19 allows it to be fit for human consumption. 20 4. “Program” means the choose Iowa promotional program 21 established in section 159.29. 22 Sec. 3. NEW SECTION . 159.28 Administration. 23 The department shall administer the provisions of this part, 24 including by adopting rules pursuant to chapter 17A as it 25 determines are necessary or desirable. 26 Sec. 4. NEW SECTION . 159.29 Choose Iowa promotional 27 program. 28 1. The department shall establish and administer a choose 29 Iowa promotional program to advertise for sale on a retail 30 basis a food item that originates as an agricultural commodity 31 produced on an Iowa farm, and that may include any of the 32 following: 33 a. An agricultural commodity, except that it may be prepared 34 for sale by washing or packaging in this state. 35 -1- LSB 5280HV (2) 89 da/ns 1/ 18
H.F. 2439 b. A product, if it is processed in this state and any of 1 its ingredients originate as an agricultural commodity produced 2 on an Iowa farm. 3 2. a. The department may adopt rules further defining 4 an Iowa farm and describing how an agricultural commodity 5 originates on an Iowa farm. 6 b. The department may adopt rules providing for the 7 acceptable use of ingredients originating from agricultural 8 commodities not produced on Iowa farms. In adopting the 9 rules, the department may consider whether the ingredient is 10 an incidental additive or other component that the department 11 determines is insignificant. 12 Sec. 5. NEW SECTION . 159.30 Choose Iowa logo. 13 1. As part of the program, the department may establish 14 a choose Iowa logo to identify a food item originating as an 15 agricultural commodity produced on an Iowa farm. 16 2. The department may register the choose Iowa logo as a 17 mark with the secretary of state under chapter 548. If allowed 18 under federal law, the department may also register the logo as 19 a trademark with the United States patent and trademark office 20 or as a copyright with the United States copyright office. 21 3. This section does not require the department to 22 incorporate the name “choose Iowa” as part of a mark, 23 trademark, or copyright, if such name is already protected by 24 state or federal law. 25 4. If the department registers a mark with the secretary 26 of state, registers a trademark with the United States patent 27 and trademark office, or registers a copyright with the United 28 States copyright office under this section, the state of 29 Iowa shall be named as the owner of the mark, trademark, or 30 copyright. 31 5. The use of a choose Iowa logo does not do any of the 32 following: 33 a. Provide an express or implied guarantee or warranty 34 concerning the safety, fitness, merchantability, or use of a 35 -2- LSB 5280HV (2) 89 da/ns 2/ 18
H.F. 2439 food item. 1 b. Supersede, revise, or replace a state or federal labeling 2 requirement, including but not limited to a provision in the 3 federal Fair Packaging and Labeling Act, 15 U.S.C. §1451 et 4 seq. 5 c. Indicate the grade, specification, standard, or value of 6 any food item. 7 Sec. 6. NEW SECTION . 159.31 Choose Iowa licensing agreement 8 —— fees. 9 1. A person may apply to the department to participate in 10 the choose Iowa promotional program according to procedures 11 established by rules adopted by the department. The department 12 shall evaluate and approve or disapprove applications based 13 on criteria established by rules adopted by the department. 14 The department may disapprove an application if the department 15 determines the applicant’s use of the choose Iowa logo would be 16 associated with the consumption of an adulterated or illegal 17 food item. 18 2. The department may enter into a licensing agreement 19 with a person participating in the program. The participating 20 person may use the choose Iowa logo to advertise a food item 21 originating as an agricultural commodity produced on an Iowa 22 farm, subject to terms and conditions required by rules adopted 23 by the department. A licensing agreement shall not be for more 24 than one year. 25 3. The department shall establish application and license 26 fees by rules adopted by the department. 27 Sec. 7. NEW SECTION . 159.31A Choose Iowa fund. 28 1. A choose Iowa fund is established in the state treasury 29 under the management and control of the department. 30 2. The fund shall include moneys collected as fees by the 31 department as provided in section 159.31, moneys appropriated 32 by the general assembly, and other moneys available to and 33 obtained or accepted by the department, including moneys from 34 public or private sources. 35 -3- LSB 5280HV (2) 89 da/ns 3/ 18
H.F. 2439 3. Moneys in the fund are appropriated to the department 1 and shall be used exclusively to carry out the provisions of 2 this part as determined and directed by the department, and 3 shall not require further special authorization by the general 4 assembly. 5 4. a. Notwithstanding section 12C.7, interest or earnings 6 on moneys in the fund shall be credited to the fund. 7 b. Notwithstanding section 8.33, moneys in the fund that 8 remain unencumbered or unobligated at the end of a fiscal year 9 shall not revert. 10 Sec. 8. DIRECTIONS TO CODE EDITOR —— TRANSFER. 11 1. The Code editor is directed to make the following 12 transfer: 13 Section 159.27 to section 159.25. 14 2. The Code editor shall correct internal references in the 15 Code and in any enacted legislation as necessary due to the 16 enactment of this section. 17 Sec. 9. DIRECTIONS TO CODE EDITOR —— PARTS. The Code editor 18 is directed to divide the provisions in chapter 159, subchapter 19 II, as amended, enacted, or transferred in this division of 20 this Act, into parts as follows: 21 1. Part 1, including sections 159.20 through 159.25. 22 2. Part 2, including sections 159.26 through 159.31A. 23 DIVISION II 24 REGULATION OF PESTICIDES 25 Sec. 10. Section 206.12, subsection 3, Code 2022, is amended 26 to read as follows: 27 3. The registrant, before selling or offering for sale any 28 pesticide for use in this state, shall register each brand and 29 grade of such pesticide with the secretary upon forms furnished 30 by the secretary, and the secretary shall set the registration 31 fee annually at one-fifth of one percent of gross sales within 32 this state with a minimum fee of two hundred fifty dollars and 33 a maximum fee of three thousand hundred dollars for each and 34 every brand and grade to be offered for sale in this state 35 -4- LSB 5280HV (2) 89 da/ns 4/ 18
H.F. 2439 except as otherwise provided . The annual registration fee for 1 products with gross annual sales in this state of less than 2 one million five hundred thousand dollars shall be the greater 3 of two hundred fifty dollars or one-fifth of one percent of 4 the gross annual sales as established by affidavit of the 5 registrant. The secretary shall adopt by rule exemptions to 6 the minimum fee. Fifty dollars of each fee collected shall be 7 deposited in the general fund of the state, shall be subject 8 to the requirements of section 8.60 , and shall be used only 9 for the purpose of enforcing the provisions of this chapter 10 and the remainder of each fee collected shall be placed in the 11 agriculture management account of the groundwater protection 12 fund. 13 Sec. 11. Section 206.19, subsection 5, paragraph b, Code 14 2022, is amended to read as follows: 15 b. The amount of the civil penalty that may be assessed 16 for each violation committed by a commercial applicator or 17 private applicator shall not exceed five hundred dollars for 18 each offense . 19 DIVISION III 20 REGULATION OF MOTOR FUELS 21 Sec. 12. Section 214A.1, subsections 2, 5, and 13, Code 22 2022, are amended to read as follows: 23 2. A.S.T.M. ASTM international” means the American society 24 for testing and materials international. 25 5. “Biodiesel” means a renewable fuel comprised of 26 mono-alkyl esters of long-chain fatty acids derived from 27 vegetable oils or animal fats, which is manufactured by the 28 use of a transesterification reaction, and which meets the 29 standards provided in section 214A.2 . 30 13. “E-85 gasoline” or “E-85” means ethanol blended gasoline 31 formulated with a percentage of between seventy sixty-eight 32 and eighty-five eighty-three percent by volume of ethanol, if 33 the formulation excludes a denaturant, and which meets the 34 standards provided in section 214A.2 . 35 -5- LSB 5280HV (2) 89 da/ns 5/ 18
H.F. 2439 Sec. 13. NEW SECTION . 214A.1A Administration and 1 enforcement. 2 This chapter shall be administered and enforced by the 3 department which may adopt rules under chapter 17A to carry out 4 the provisions of this chapter. 5 Sec. 14. Section 214A.2, Code 2022, is amended to read as 6 follows: 7 214A.2 Tests and standards Standards and classifications . 8 1. a. The department shall adopt rules pursuant to chapter 9 17A for carrying out this chapter . The rules may include but 10 are not limited to specifications establishing departmental 11 standards relating to motor fuel, including but not limited to 12 renewable fuel such as ethanol blended gasoline, biobutanol 13 blended gasoline, biodiesel, biodiesel blended fuel, fuels and 14 motor fuel components such as an oxygenate . 15 b. In the interest of uniformity, the department shall 16 adopt by reference other in part or in whole, as some of its 17 departmental standards described in paragraph “a” , applicable 18 specifications relating to tests and standards for motor fuel, 19 including renewable fuel and motor fuel components, adopted by 20 ASTM international and applicable requirements established by 21 the United States environmental protection agency and A.S.T.M. 22 international . 23 2. Octane number shall conform to the average of values 24 obtained from the A.S.T.M. ASTM international D2699 research 25 method and the A.S.T.M. ASTM international D2700 motor method. 26 a. Octane number for regular grade unleaded gasoline shall 27 follow the specifications of A.S.T.M. ASTM international but 28 shall not be less than eighty-seven. 29 b. Octane number for premium grade unleaded gasoline shall 30 follow the specifications of A.S.T.M. ASTM international but 31 shall not be less than ninety ninety-one . 32 3. a. For motor fuel advertised for sale or sold as 33 gasoline by a dealer, the motor fuel must meet requirements 34 for that type of motor fuel and its additives established by 35 -6- LSB 5280HV (2) 89 da/ns 6/ 18
H.F. 2439 the United States environmental protection agency including as 1 provided under 42 U.S.C. §7545. 2 b. If the motor fuel is advertised for sale or sold as 3 ethanol blended gasoline, the motor fuel must comply with meet 4 departmental standards which shall meet all of the following 5 requirements including as follows : 6 (1) Ethanol must be an agriculturally derived ethyl alcohol 7 that meets A.S.T.M. departmental standards based in part or in 8 whole on ASTM international specification D4806 for denatured 9 fuel ethanol for blending with gasoline for use as automotive 10 spark-ignition engine fuel, or a successor A.S.T.M. ASTM 11 international specification, as established by rules adopted 12 by the department rule . 13 (2) Gasoline blended with ethanol must meet requirements 14 established by rules adopted departmental standards based 15 in part or in whole based on A.S.T.M. ASTM international 16 specification D4814 , or a successor ASTM international 17 specification, established by rule . 18 (3) (a) For ethanol blended gasoline, at least nine ten 19 percent by volume must be fuel grade ethanol. In addition, the 20 following applies: 21 (a) (b) For the period beginning on September 16 and 22 ending on May 31 of each year, the state grants a waiver of 23 one pound per square inch from the A.S.T.M. ASTM international 24 D4814 specification for Reid vapor pressure requirement , or 25 a successor ASTM international specification, established by 26 rule . 27 (b) For the period beginning on June 1 and ending on 28 September 15 of each year the United States environmental 29 protection agency must grant a one pound per square inch waiver 30 for ethanol blended conventional gasoline with at least nine 31 but not more than ten percent by volume of ethanol pursuant to 32 40 C.F.R. §80.27 . 33 (4) For standard ethanol blended gasoline, it must be 34 ethanol blended gasoline classified as any of the following: 35 -7- LSB 5280HV (2) 89 da/ns 7/ 18
H.F. 2439 (a) From E-9 E-10 up to but not higher than E-15, if the 1 ethanol blended gasoline meets the departmental standards for 2 that classification as otherwise provided in this paragraph 3 “b” . 4 (b) Higher than E-15 but not E-85 gasoline , if the 5 classification is authorized by the department pursuant to 6 approval for the use of that classification of ethanol blended 7 gasoline in this state by the United States environmental 8 protection agency, by granting a waiver or the adoption of 9 regulations. 10 (5) E-85 gasoline must be an agriculturally derived ethyl 11 alcohol that meets A.S.T.M. departmental standards based in 12 part or in whole on ASTM international specification D5798, 13 described as a fuel blend for use in ground vehicles with 14 automotive spark-ignition engines, or a successor A.S.T.M. ASTM 15 international specification, as established by rules adopted 16 by the department rule . 17 c. If the motor fuel is advertised for sale or sold as 18 biobutanol blended gasoline, the motor fuel must comply 19 with meet departmental standards which shall meet all of the 20 following requirements as follows : 21 (1) Biobutanol must be an agriculturally derived isobutyl 22 or n-butyl alcohol that meets A.S.T.M. ASTM international 23 specification D7862 for butanol for blending with gasoline for 24 use as automotive spark-ignition engine fuel, or a successor 25 A.S.T.M. ASTM international specification, as established by 26 rules adopted by the department rule . 27 (2) Gasoline blended with biobutanol must meet requirements 28 established by rules adopted departmental standards based 29 in part or in whole based on A.S.T.M. ASTM international 30 specification D4814 , or a successor ASTM international 31 specification, established by rule . 32 4. a. For motor fuel advertised for sale or sold as diesel 33 fuel by a dealer, the motor fuel must meet requirements for 34 that type of motor fuel and its additives established by the 35 -8- LSB 5280HV (2) 89 da/ns 8/ 18
H.F. 2439 United States environmental protection agency including as 1 provided under 42 U.S.C. §7545. 2 b. If the motor fuel is advertised for sale or sold as 3 biodiesel or biodiesel blended fuel, the motor fuel must comply 4 with meet departmental standards which shall comply with based 5 in part or in whole on specifications adopted by A.S.T.M. ASTM 6 international for biodiesel or biodiesel blended fuel, to 7 every extent applicable , as determined by rules adopted by the 8 department. the department, subject to the following: 9 (1) Biodiesel must conform to A.S.T.M. meet departmental 10 standards based in whole or in part on ASTM international 11 specification D6751 , or a successor A.S.T.M. ASTM international 12 specification , as established by rules adopted by the 13 department rule . The specification shall apply to biodiesel 14 before it leaves its place of manufacture. 15 (2) At least one five percent of biodiesel blended fuel by 16 volume must be biodiesel. 17 (3) The biodiesel may be blended with diesel fuel whose 18 sulfur, aromatic, lubricity, and cetane levels do not comply 19 with A.S.T.M. ASTM international specification D975 grades 20 1-D or 2-D, low sulfur 1-D or 2-D, or ultra-low sulfur grades 21 1-D or 2-D, provided that the finished biodiesel blended fuel 22 meets A.S.T.M. international specification D975 or a successor 23 A.S.T.M. international specification as established by rules 24 adopted by the department departmental standards as required in 25 subparagraph (1) . 26 (4) Biodiesel blended fuel classified as B-6 or higher 27 but not higher than B-20 must conform to A.S.T.M. meet 28 departmental standards based in whole or in part on ASTM 29 international specification D7467 , or a successor A.S.T.M. ASTM 30 international specification , as established by rules adopted 31 by the department rule . 32 5. Motor fuel shall be classified as follows: 33 a. (1) Ethanol shall be classified as E-100. 34 (2) Ethanol blended gasoline formulated with a percentage 35 -9- LSB 5280HV (2) 89 da/ns 9/ 18
H.F. 2439 of between sixty-eight and eighty-three percent by volume of 1 ethanol shall be classified as E-85. 2 (3) Ethanol blended gasoline , other than ethanol blended 3 gasoline classified as E-85, shall be designated classified as 4 E-xx where “xx” is the volume percent of ethanol in the ethanol 5 blended gasoline. 6 b. (1) Biobutanol shall be classified as Bu-100. 7 (2) Biobutanol blended gasoline shall be designated 8 classified as Bu-xx where “xx” is the volume percent of 9 biobutanol in the biobutanol blended gasoline. 10 c. (1) Biodiesel shall be classified as B-100. 11 (2) Biodiesel blended fuel shall be designated classified 12 as B-xx where “xx” is the volume percent of biodiesel. 13 6. Motor fuel shall not contain more than trace amounts of 14 MTBE, as provided in section 214A.18 . 15 Sec. 15. Section 214A.2A, subsection 1, Code 2022, is 16 amended to read as follows: 17 1. Fuel which is sold or is kept, offered, or exposed for 18 sale as kerosene shall be labeled as kerosene. The label shall 19 include the word “kerosene” or the designation “K1 kerosene”, 20 and shall indicate that the kerosene is in compliance with the 21 standard specification adopted by A.S.T.M. ASTM international 22 specification D3699 (1982) , or a successor ASTM international 23 specification, established by rules adopted by the department . 24 Sec. 16. Section 214A.2B, Code 2022, is amended to read as 25 follows: 26 214A.2B Laboratory for motor fuel and biofuels. 27 A laboratory for motor fuel and biofuels is established at 28 a community college which is engaged in biofuels testing on 29 July 1, 2007, and which testing includes but is not limited to 30 B-20 biodiesel fuel testing for motor trucks and the ability of 31 biofuels to meet A.S.T.M. ASTM international standards. The 32 laboratory shall conduct testing of motor fuel sold in this 33 state and biofuel which is blended in motor fuel in this state 34 to ensure that the motor fuel or biofuels meet the requirements 35 -10- LSB 5280HV (2) 89 da/ns 10/ 18
H.F. 2439 in section 214A.2 . 1 Sec. 17. Section 214A.3, Code 2022, is amended to read as 2 follows: 3 214A.3 Advertising. 4 1. For all motor fuel, a A person shall not knowingly do any 5 of the following: 6 a. 1. Advertise the for sale of any motor fuel which that 7 does not meet the standards provided in section 214A.2 . 8 b. 2. Falsely advertise for sale the quality , type, or kind 9 of any motor fuel or a component of motor fuel. 10 c. 3. Add a coloring matter to the motor fuel which 11 misleads a person who is purchasing the motor fuel about the 12 quality of the motor fuel. 13 4. Falsely advertise for sale the classification of a motor 14 fuel as provided in section 214A.2. 15 2. For a renewable fuel, all of the following apply: 16 a. A person shall not knowingly falsely advertise that a 17 motor fuel is a renewable fuel or is not a renewable fuel. 18 b. (1) Ethanol blended gasoline sold by a dealer shall 19 be designated according to its classification as provided in 20 section 214A.2 . However, a person advertising E-9 or E-10 21 gasoline may only designate it as ethanol blended gasoline. A 22 person advertising ethanol blended gasoline formulated with a 23 percentage of between seventy and eighty-five percent by volume 24 of ethanol shall designate it as E-85. A person shall not 25 knowingly falsely advertise ethanol blended gasoline by using 26 an inaccurate designation in violation of this subparagraph. 27 (2) A person shall not knowingly falsely advertise 28 biobutanol blended gasoline by using an inaccurate designation 29 as provided in section 214A.2 . 30 (3) A person shall not knowingly falsely advertise 31 biodiesel fuel by using an inaccurate designation as provided 32 in section 214A.2 . 33 Sec. 18. Section 214A.5, subsection 2, Code 2022, is amended 34 to read as follows: 35 -11- LSB 5280HV (2) 89 da/ns 11/ 18
H.F. 2439 2. A wholesale dealer selling ethanol blended gasoline, 1 biobutanol blended gasoline, or biodiesel blended fuel to 2 a purchaser shall provide the purchaser with a statement 3 indicating its designation classification as provided in 4 section 214A.2 . The statement may be on the sales slip 5 provided in this section or a similar document, including but 6 not limited to a bill of lading or invoice. 7 Sec. 19. Section 214A.16, Code 2022, is amended to read as 8 follows: 9 214A.16 Notice of renewable fuel —— decal. 10 1. a. If ethanol blended gasoline is sold from a motor 11 fuel pump, the motor fuel pump shall have affixed a decal 12 identifying the ethanol blended gasoline. 13 b. If the motor fuel pump dispenses ethanol blended gasoline 14 classified as E-11 to E-15 for use in gasoline-powered vehicles 15 not required to be flexible fuel vehicles, the motor fuel pump 16 shall have affixed a decal as prescribed by the United States 17 environmental protection agency. 18 c. 1. a. If the motor fuel pump dispenses ethanol blended 19 gasoline classified as higher than standard ethanol blended 20 gasoline pursuant to section 214A.2 is advertised for sale or 21 sold at a retail motor fuel site , the motor fuel dispenser 22 dispensing the ethanol blended gasoline shall be affixed with a 23 decal s hall contain language stating that the classification 24 of the ethanol blended gasoline is for use in flexible fuel 25 vehicles. 26 d. b. If biobutanol blended gasoline is advertised for sale 27 or sold from at a retail motor fuel site, the motor fuel pump, 28 the motor fuel pump dispenser dispensing the biobutanol blended 29 gasoline shall have be affixed with a decal identifying the 30 classification of biobutanol blended gasoline. 31 e. If biodiesel fuel is sold from a motor fuel pump, the 32 motor fuel pump shall have affixed a decal identifying the 33 biodiesel fuel as provided in 16 C.F.R. pt. 306 . 34 2. The design and location of the decal shall be prescribed 35 -12- LSB 5280HV (2) 89 da/ns 12/ 18
H.F. 2439 by rules adopted by the department. A decal identifying a 1 renewable fuel shall be consistent with standards adopted 2 pursuant to section 159A.6 . The department may approve an 3 application to place a decal in a special location on a pump 4 dispenser or container or use a decal with special lettering 5 or colors, if the decal appears clear and conspicuous to the 6 consumer. The application shall be made in writing pursuant to 7 procedures adopted by the department. 8 Sec. 20. Section 452A.12, subsection 2, Code 2022, is 9 amended to read as follows: 10 2. A person while transporting motor fuel or undyed special 11 fuel from a refinery or marine or pipeline terminal in this 12 state or from a point outside this state over the highways 13 of this state in service other than that under subsection 14 1 shall carry in the vehicle a loading invoice showing the 15 name and address of the seller or consignor, the date and 16 place of loading, and the kind and quantity of motor fuel or 17 special fuel loaded, together with invoices showing the kind 18 and quantity of each delivery and the name and address of each 19 purchaser or consignee. An invoice carried pursuant to this 20 subsection for ethanol blended gasoline or biodiesel blended 21 fuel shall state its designation classification as provided in 22 section 214A.2 . 23 Sec. 21. Section 455G.31, subsection 1, paragraph b, Code 24 2022, is amended to read as follows: 25 b. Ethanol blended gasoline shall be designated classified 26 in the same manner as provided in section 214A.2 . 27 EXPLANATION 28 The inclusion of this explanation does not constitute agreement with 29 the explanation’s substance by the members of the general assembly. 30 GENERAL. This bill provides for programs and regulations 31 administered and enforced by the department of agriculture and 32 land stewardship (DALS). 33 CHOOSE IOWA PROMOTIONAL PROGRAM. The bill requires DALS 34 to establish and administer a choose Iowa promotional program 35 -13- LSB 5280HV (2) 89 da/ns 13/ 18
H.F. 2439 (program) in order to provide consumers a choice in purchasing 1 a food item originating as an agricultural commodity produced 2 on an Iowa farm (amended Code section 159.20). This includes 3 either (1) an agricultural commodity produced on an Iowa farm 4 or (2) a product processed in this state, if the product is 5 an agricultural commodity that has been prepared in Iowa, or 6 any of the product’s ingredients are agricultural commodities 7 produced on an Iowa farm (new Code section 159.29). DALS is 8 provided discretion to further define what constitutes an Iowa 9 farm and describe how an agricultural commodity originates on 10 an Iowa farm. 11 CHOOSE IOWA LOGO. As part of the program, DALS may establish 12 a choose Iowa logo (logo) to identify a food item originating 13 as an agricultural commodity produced on an Iowa farm. DALS 14 may register the logo as a mark with the secretary of state. 15 DALS may also register the logo as a trademark with the United 16 States patent and trademark office or as a copyright with the 17 United States copyright office. The use of the logo does not 18 create an express or implied warranty; involve state or federal 19 labeling requirements; or indicate the grade, specification, 20 standard, or value of a food item (new Code section 159.30). 21 CHOOSE IOWA PROMOTIONAL PROGRAM —— LICENSING AGREEMENTS AND 22 FEES. DALS may enter into a licensing agreement (agreement) 23 with a person who applies to use the logo. An agreement cannot 24 be for more than five years. DALS must evaluate and approve or 25 disapprove applications based on criteria established by rule. 26 DALS may also establish application and license fees by rule. 27 CHOOSE IOWA FUND. A choose Iowa fund (fund) is established 28 in the state treasury under DALS’ management and control. The 29 fund includes moneys that DALS collects in fees or otherwise 30 receives, including by appropriation or gift. DALS must use 31 the moneys exclusively to carry out the provisions of the bill. 32 PESTICIDE REGULATION. The bill amends Code chapter 206, 33 “the Pesticide Act of Iowa” (Code section 206.1) which in part 34 regulates commercial and private applicators. Before selling 35 -14- LSB 5280HV (2) 89 da/ns 14/ 18
H.F. 2439 or offering for sale any pesticide for use in this state, a 1 person must register each brand and grade of that pesticide 2 with DALS. Registration fees are based on a percentage 3 of gross sales of that brand or grade in this state with a 4 minimum fee of $250 and a maximum fee of $3,000 (Code section 5 206.12(3)). The bill replaces that method of calculating the 6 registration fee with a flat fee of $300. Generally, a person 7 in business as a commercial applicator (applying pesticides to 8 another person’s land) must be certified and licensed (Code 9 sections 206.5 and 206.6). A private applicator (e.g., a 10 farmer) applying a restricted use pesticide must be certified 11 (Code section 206.5). During the last regular session, the 12 general assembly enacted SF 482 (2021 Acts, chapter 28) which 13 in part provides that a private applicator is subject to the 14 same civil penalty as a commercial applicator for violating a 15 provision of the Code chapter (amended Code section 206.19). 16 The Act provided that the amount for each violation committed 17 by a commercial applicator or private applicator cannot exceed 18 $500 for each violation. The bill amends the provision by 19 changing the term from “violation” back to “offense”. 20 MOTOR FUEL REGULATION —— BACKGROUND. DALS regulates persons 21 advertising for sale or selling motor fuel on a wholesale 22 or retail basis (Code chapter 214A) as well as motor fuel 23 infrastructure used to store and dispense motor fuel at a 24 retail motor fuel site owned or operated by a retail dealer 25 and, in particular, metered motor fuel pumps located at a 26 retail motor fuel site (Code chapter 214). Three types of 27 motor fuel are regulated by DALS, including gasoline and diesel 28 fuel (Code section 214A.2), and kerosene (Code sections 214A.2 29 and 214A.2A) as well as their respective components. A biofuel 30 is a component used to formulate a motor fuel and is closely 31 associated with formulations of both gasoline and diesel fuel. 32 A renewable fuel is a term which refers to either a biofuel 33 or a motor fuel blended with a biofuel. A biofuel includes 34 ethanol which is grain alcohol (e.g., derived from corn) used 35 -15- LSB 5280HV (2) 89 da/ns 15/ 18
H.F. 2439 to produce ethanol blended gasoline, biobutanol which is 1 isobutyl or n-butyl alcohol (derived from the same feedstocks 2 as ethanol but includes corn stover) used to produce biobutanol 3 blended gasoline, and biodiesel which is often a vegetable oil 4 (e.g., derived from soybeans) used to produce biodiesel blended 5 fuel. DALS establishes standards for these motor fuels and 6 their components based on two outside sources of authority: 7 (1) specifications recommended by ASTM international, a 8 private globally recognized organization, and (2) requirements 9 adopted by the United States environmental protection agency 10 (EPA). The EPA and the United States federal trade commission 11 (FTC) also regulate the labeling of motor fuel dispensers by 12 requiring information about the motor fuel to be dispensed, 13 such as the octane level of gasoline and the percentage content 14 of any biofuel component (42 U.S.C. §7545 and 40 C.F.R. pt. 15 1090, 15 U.S.C. §2801 et seq., 42 U.S.C. §17021, 16 C.F.R. 16 pt. 306, and 40 C.F.R. §80.1501(a)). DALS’ regulation of a 17 renewable fuel depends upon its classification expressed as an 18 abbreviation identifying the renewable fuel according to type 19 followed by a number representing the biofuel percentage by 20 volume usually measured by gallon. The designation “xx” is 21 used as a stand-in designation for the actual percentage of a 22 biofuel percentage threshold (amended Code section 214A.2(5)) 23 depending upon the Code provision (e.g., the E-15 plus gasoline 24 promotion tax credit in Code section 422.11Y). One special 25 exception is E-85 gasoline which is based on a percentage range 26 of between 70 and 85 percent by volume of ethanol. 27 MOTOR FUEL REGULATION —— REVISION OF TERMS. The bill revises 28 certain terms, including by changing “A.S.T.M. international” 29 to “ASTM international” and defining “biodiesel” by referring 30 to its production method (amended Code section 214A.1). 31 The bill provides for the consistent use of certain terms, 32 including “specifications” which refers to recommendations 33 adopted by ASTM international, “requirements” which refers to 34 EPA regulations, and “standards” which refers to departmental 35 -16- LSB 5280HV (2) 89 da/ns 16/ 18
H.F. 2439 rules (amended Code section 214A.2). The bill also provides 1 for the consistent use of the term “standard” which is 2 occasionally referred to as “designation” (amended Code 3 sections 214A.2A, 214A.3, 214A.5, 452A.12, and 455G.31). The 4 bill provides that a label is to be placed on a “motor fuel 5 dispenser” rather than a “motor fuel pump” (amended Code 6 section 214A.16). 7 MOTOR FUEL REGULATION —— DEPARTMENTAL STANDARDS. The 8 bill provides that the minimum octane rating for premium 9 grade gasoline is changed from 90 to 91 (amended Code 10 section 214A.2(2)). For all three types of motor fuel, 11 departmental standards may be based in part or in whole on 12 ASTM international specifications, and may include successor 13 specifications. The bill eliminates a requirement recognizing 14 that EPA must grant a seasonal waiver from its requirements 15 before a retail dealer may advertise for sale or sell ethanol 16 blended gasoline (amended Code section 214A.2(3)). The 17 threshold for ethanol blended gasoline is increased from E-9 to 18 E-10 (amended Code section 214A.2(3)) and from B-1 to B-5 for 19 biodiesel blended motor fuel (amended Code section 214A.2(4)). 20 MOTOR FUEL REGULATION —— CLASSIFICATIONS. The bill 21 adds subclassifications for biofuels including for ethanol 22 classified as E-100, biobutanol classified as Bu-100, and 23 biodiesel classified as B-100. The bill also recognizes E-85 24 according to its revised percentage range, which is 68 to 83 25 percent. 26 MOTOR FUEL REGULATION —— ADVERTISING. The bill revises 27 a provision which prohibits a person from knowingly falsely 28 advertising for sale motor fuel (amended Code section 214A.3). 29 The bill replaces a provision that prohibits a person from 30 falsely advertising that a motor fuel is or is not a renewable 31 fuel with a provision that prohibits a person from falsely 32 advertising the classification of a renewable fuel. The bill 33 also eliminates a requirement that a motor fuel pump (motor 34 fuel dispenser) be affixed with a label that identifies the 35 -17- LSB 5280HV (2) 89 da/ns 17/ 18
H.F. 2439 dispensed gasoline as ethanol blended gasoline (e.g., E-10), 1 that identifies ethanol blended gasoline classified from E-11 2 to E-15, or that identifies dispensed diesel fuel as biodiesel 3 blended fuel. The bill retains a state requirement that a 4 motor fuel dispenser identify gasoline classified as higher 5 than E-15 (e.g., E-85) or any classification of biobutanol 6 blended gasoline. The bill does not affect federal labeling 7 requirements. 8 APPLICABLE PENALTIES. A person who violates a provision 9 of Code chapter 214A is guilty of a serious misdemeanor. A 10 serious misdemeanor is punishable by confinement for no more 11 than one year and a fine of at least $430 but not more than 12 $2,560. However, the state may initiative a substitute civil 13 enforcement action as an administrative action by DALS or as 14 a judicial proceeding by the attorney general upon referral 15 by DALS. The civil penalty must be for at least $100 but 16 not more than $1,000 for each violation and each day of a 17 continuing violation constitutes a separate offense (Code 18 section 214A.11). 19 -18- LSB 5280HV (2) 89 da/ns 18/ 18
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