Iowa General Assembly Daily Bills, Amendments & Study Bills March 17, 2009



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65 14 chapter. These funds may be used for any of the purposes of

65 15 this chapter, including but not limited to costs of

65 16 administration and insuring or guaranteeing payment of all or

65 17 a portion of loans made pursuant to this chapter.

65 18 3. a. Beginning August 11, 1983, the authority shall

65 19 establish an insurance or guarantee loan program with those

65 20 funds received pursuant to section 175.28 to the extent those

65 21 funds were not committed under a program authorized by this

65 22 chapter on August 11, 1983. This program shall provide for

65 23 the insuring or guaranteeing of seventy=five percent of the

65 24 amount of an agricultural loan, not in excess of twenty=five

65 25 thousand dollars, made to a beginning or displaced farmer to

65 26 provide operating moneys for farming purposes in this state.

65 27 b. The authority shall insure or guarantee only one such

65 28 loan for each beginning or displaced farmer. The authority

65 29 shall insure or guarantee a loan for only one year but with

65 30 the option to extend the insurance or guarantee once for an

65 31 additional year. The authority shall not insure or guarantee

65 32 a loan where the ratio of the beginning or displaced farmer's

65 33 liabilities, excluding the amount of the loan, to assets is

65 34 greater than three to one.

65 35 c. Provision shall be made in the insuring or guaranteeing
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66 1 of a loan that only those funds set aside for this program as

66 2 provided in this paragraph subsection shall be used for the

66 3 payment of all or a portion of the loan insured or guaranteed.

66 4 Provision shall also be made that the authority shall pay

66 5 under its insurance or guarantee seventy=five percent of the

66 6 actual amount of the default.

66 7 d. A mortgage lender which seeks to have a loan of the

66 8 lender insured or guaranteed under this program shall apply to

66 9 the authority for the insurance or guarantee pursuant to rules

66 10 established by the authority for this purpose. This program

66 11 shall not obligate the state, authority, or other agency

66 12 except to the extent provided in this paragraph subsection.

66 13 e. The authority shall define by rule what constitutes a

66 14 loan made to provide operating moneys which definition shall

66 15 not include a loan made for acquisition of agricultural land

66 16 or agricultural improvements, or the refinancing of an

66 17 existing loan even if made for operating purposes. As used in

66 18 this section, "displaced farmer" means a person who


66 19 discontinued farming on or after January 1, 1982 due to

66 20 foreclosure or voluntary liquidation for financial reasons,

66 21 and who was actively engaged in farming for at least one year

66 22 prior to discontinuing farming. For the purposes of this

66 23 section, "beginning farmer" includes an individual or

66 24 partnership with a low or moderate net worth that became

66 25 engaged in farming on or after January 1, 1982.

66 26 Sec. 69. Section 176A.3, Code 2009, is amended to read as

66 27 follows:

66 28 176A.3 DEFINITION OF TERMS.

66 29 Whenever used or referred to in this chapter, unless a

66 30 different meaning clearly appears from the context (1)



66 31 "county:

66 32 1. "County agricultural extension council" hereinafter



66 33 referred to as "extension council" means the agency created

66 34 and constituted as provided in section 176A.5.

66 35 2. "County agricultural extension district" hereinafter


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67 1 referred to as "extension district" means a governmental

67 2 subdivision of this state, and a public body corporate

67 3 organized in accordance with the provisions of this chapter

67 4 for the purposes, with the powers, and subject to the

67 5 restrictions hereinafter set forth; (2) "county agricultural


67 6 extension council" hereinafter referred to as "extension

67 7 council" means the agency created and constituted as provided

67 8 in section 176A.5; (3) in this chapter.

67 9 3. "Director of extension" means the "director of Iowa



67 10 state university of science and technology extension service",

67 11 and shall hereinafter be referred to as "director of

67 12 extension".

67 13 4. "Extension service" means the "cooperative extension



67 14 service in agriculture and home economics of Iowa state

67 15 university", and shall hereinafter be referred to as

67 16 "extension service".

67 17 5. "Iowa state university" means the "Iowa state

67 18 university of science and technology", and shall hereinafter

67 19 be referred to as "Iowa state university"; (4) "extension



67 20 service" means the "co=operative extension service in

67 21 agriculture and home economics of Iowa state university", and

67 22 shall hereinafter be referred to as "extension service"; (5)

67 23 "director of extension" means the "director of Iowa state


67 24 university of science and technology extension service", and

67 25 shall hereinafter be referred to as "director of extension".

67 26 Sec. 70. Section 176A.8, subsection 3, Code 2009, is

67 27 amended to read as follows:

67 28 3. a. To and shall, at least ninety days prior to the

67 29 date fixed for the election of council members, appoint a

67 30 nominating committee consisting of four persons who are not

67 31 council members and designate the chairperson. The membership

67 32 of the nominating committee shall be gender balanced. The

67 33 nominating committee shall consider the geographic

67 34 distribution of potential nominees in nominating one or more

67 35 resident registered voters of the extension district as
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68 1 candidates for election to each office to be filled at the

68 2 election. To qualify for the election ballot, each nominee

68 3 shall file a nominating petition signed by at least

68 4 twenty=five eligible electors of the district with the county

68 5 commissioner of elections at least sixty=nine days before the

68 6 date of election.

68 7 b. The council To and shall also provide for the

68 8 nomination by petition of candidates for election to

68 9 membership on the extension council. A nominating petition

68 10 shall be signed by at least twenty=five eligible electors of

68 11 the extension district and shall be filed with the county

68 12 commissioner of elections at least sixty=nine days before the

68 13 date of the election.

68 14 Sec. 71. Section 177.2, subsection 4, Code 2009, is

68 15 amended to read as follows:

68 16 4. Conduct, in cooperation with Iowa state university

68 17 college of agriculture and life sciences, testing and

68 18 disseminating disseminate information regarding the adaptation

68 19 and performance of crop cultivars.

68 20 Sec. 72. Section 177.3, subsection 2, paragraph b,

68 21 unnumbered paragraph 1, Code 2009, is amended to read as

68 22 follows:

68 23 The following persons representing the college of

68 24 agriculture and life sciences at Iowa state university:

68 25 Sec. 73. Section 177A.6, Code 2009, is amended to read as

68 26 follows:

68 27 177A.6 RULES.

68 28 1. The state entomologist shall, from time to time, make

68 29 adopt rules for carrying out the provisions and requirements

68 30 of this chapter, including rules under which the inspectors

68 31 and other employees shall:

68 32 1. a. Inspect places, plants and plant products, and

68 33 things and substances used or connected therewith,

68 34 2. b. Investigate, control, eradicate and prevent the

68 35 dissemination of insect pests and diseases, and
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69 1 3. c. Supervise or cause the treatment, cutting and

69 2 destruction of plants and plant products infested or infected

69 3 therewith.

69 4 2. The state entomologist, the entomologist's inspectors,

69 5 employees, or other authorized agents shall have authority to

69 6 enforce these rules which shall be published in the same

69 7 manner as are the other rules of the department.

69 8 3. No A nursery stock dealer shall not sell, offer for

69 9 sale, or distribute nursery products by any method, or under

69 10 any circumstances or condition, which have has the capacity

69 11 and tendency or effect of deceiving purchasers or prospective

69 12 customers as to quantity, size, grade, kind, species, age,

69 13 maturity, viability, condition, vigor, hardiness, number of

69 14 times transplanted, growth ability, growth characteristics,

69 15 rate of growth or time required before flowering or fruiting,

69 16 price, origin or place where grown, or in any other material

69 17 respect.

69 18 4. When under the provisions of this section it becomes

69 19 necessary for the state entomologist to verify sizes and

69 20 grades of nursery stock, or either of them, the entomologist

69 21 shall use as a guide the "American Standard for Nursery Stock"

69 22 as revised and approved by the American standards association,

69 23 inc.

69 24 Sec. 74. Section 186.1, Code 2009, is amended to read as

69 25 follows:

69 26 186.1 MEETINGS AND ORGANIZATION OF SOCIETY.

69 27 The Iowa state horticultural horticulture society shall

69 28 hold meetings each year, at times as it may fix, for the

69 29 transaction of business. The officers and board of directors

69 30 of the society shall be chosen as provided for in the

69 31 constitution of the society, for the period and in the manner

69 32 prescribed therein, but the secretary of agriculture or the

69 33 secretary's designee shall be a member of the board of

69 34 directors and of the executive committee. Any vacancy in the

69 35 offices filled by the society may be filled by the executive
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70 1 committee for the unexpired portion of the term.

70 2 Sec. 75. Section 186.5, Code 2009, is amended to read as

70 3 follows:

70 4 186.5 APPROPRIATIONS.

70 5 All money appropriated by the state for the use of the Iowa

70 6 state horticultural horticulture society shall be paid on the

70 7 warrant of the director of the department of administrative

70 8 services, upon the order of the president and secretary of

70 9 said society, in such sums and at such times as may be for the

70 10 interests of said society. All expenditures from state funds

70 11 for the use of the Iowa state horticultural horticulture

70 12 society are to be approved by the secretary of agriculture.

70 13 Sec. 76. Section 190A.3, subsection 1, Code 2009, is

70 14 amended to read as follows:

70 15 1. The farm=to=school program seeks shall seek to link

70 16 elementary and secondary public and nonpublic schools in this

70 17 state with Iowa farms to provide schools with fresh and

70 18 minimally processed food for inclusion in school meals and

70 19 snacks, encourage children to develop healthy eating habits,

70 20 and provide Iowa farmers access to consumer markets.

70 21 Sec. 77. Section 190C.5, subsection 1, Code 2009, is

70 22 amended to read as follows:

70 23 1. a. The department acting as a state certifying agent

70 24 shall establish a schedule of fees by rule. The fees shall be


70 25 charged to persons who are certified under this chapter,

70 26 including production operations and handling operations, in a

70 27 manner that is consistent with the national organic program.

70 28 a. The department shall establish the rate of fees based

70 29 on an estimate of the amount of revenues from the fees

70 30 required by the department to administer and enforce this

70 31 chapter.

70 32 b. The department shall annually review the estimate and

70 33 may change the rate of fees. The fees must be adjusted in

70 34 order to comply with this subsection.

70 35 c. The fees shall be charged to persons who are certified
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71 1 under this chapter, including production operations and

71 2 handling operations, in a manner that is consistent with the

71 3 national organic program.

71 4 Sec. 78. Section 198.4, Code 2009, is amended to read as

71 5 follows:

71 6 198.4 LICENSES.

71 7 1. This section shall apply to any person:

71 8 a. Who manufactures a commercial feed within the state.

71 9 b. Who distributes a commercial feed in or into the state.

71 10 c. Whose name appears on the label of a commercial feed as

71 11 guarantor.

71 12 2. The A person shall obtain a license, for each facility

71 13 which distributes in or into the state, authorizing the person

71 14 to manufacture or distribute commercial feed before the person

71 15 engages in such activity. Any person who makes only retail

71 16 sales of commercial feed which bears labeling or other

71 17 approved indication that the commercial feed is from a

71 18 licensed manufacturer, guarantor, or distributor who has

71 19 assumed full responsibility for the tonnage inspection fee due

71 20 under section 198.9 is not required to obtain a license.

71 21 3. A broker shall not distribute a commercial feed in this

71 22 state without first obtaining a license from the secretary

71 23 issued on forms provided by the secretary. The forms must

71 24 identify the broker's name and place of business.

71 25 2. 4. A person obtaining a license under this section

71 26 shall pay to the secretary a license fee of ten dollars. Fees

71 27 relating to the issuance of licenses shall be paid by July 1

71 28 of each year.

71 29 Sec. 79. Section 202B.201, subsection 1, paragraph b,

71 30 subparagraph (1), Code 2009, is amended to read as follows:

71 31 (1) (a) (i) Directly or indirectly own, control, or

71 32 operate a swine operation in this state.

71 33 (b) (ii) Finance a swine operation in this state or

71 34 finance a person who directly or indirectly contracts for the

71 35 care and feeding of swine in this state.

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72 1 For purposes of subparagraph subdivision (a) and this

72 2 subparagraph subdivision, all of the following apply:

72 3 (i) "Finance" means an action by a processor to directly



72 4 or indirectly loan money or to guarantee or otherwise act as a

72 5 surety.

72 6 (ii) "Finance" or "control" does not include executing a



72 7 contract for the purchase of swine by a processor, including

72 8 but not limited to a contract that contains an unsecured

72 9 ledger balance or other price risk sharing arrangement.

72 10 "Finance" also does not include providing an unsecured open

72 11 account or an unsecured loan, if the unsecured open account or

72 12 unsecured loan is used for the purchase of feed for the swine

72 13 and the outstanding amount due by the debtor does not exceed

72 14 five hundred thousand dollars. However, the outstanding

72 15 amount due to support a single swine operation shall not

72 16 exceed two hundred fifty thousand dollars.

72 17 (c) (iii) Obtain a benefit of production associated with

72 18 feeding or otherwise maintaining swine, by directly or

72 19 indirectly assuming a morbidity or mortality production risk,

72 20 if the swine are fed or otherwise maintained as part of a

72 21 swine operation in this state or by a person who contracts for

72 22 the care and feeding of swine in this state.

72 23 (d) (iv) Directly or indirectly receive the net revenue

72 24 derived from a swine operation in this state or from a person

72 25 who contracts for the care and feeding of swine in this state.

72 26 (b) For purposes of subparagraph division (a),


72 27 subparagraph subdivisions (i) and (ii), both of the following

72 28 apply:

72 29 (i) "Finance" means an action by a processor to directly



72 30 or indirectly loan money or to guarantee or otherwise act as a

72 31 surety.

72 32 (ii) "Finance" or "control" does not include executing a



72 33 contract for the purchase of swine by a processor, including

72 34 but not limited to a contract that contains an unsecured

72 35 ledger balance or other price risk sharing arrangement.
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73 1 "Finance" also does not include providing an unsecured open

73 2 account or an unsecured loan, if the unsecured open account or

73 3 unsecured loan is used for the purchase of feed for the swine

73 4 and the outstanding amount due by the debtor does not exceed

73 5 five hundred thousand dollars. However, the outstanding

73 6 amount due to support a single swine operation shall not

73 7 exceed two hundred fifty thousand dollars.

73 8 Sec. 80. Section 203.15, subsection 4, paragraph c, Code

73 9 2009, is amended to read as follows:

73 10 c. (1) A grain dealer must meet at least either of the

73 11 following conditions:

73 12 (1) (a) The grain dealer's last financial statement

73 13 required to be submitted to the department pursuant to section

73 14 203.3 is accompanied by an unqualified opinion based upon an

73 15 audit performed by a certified public accountant licensed in

73 16 this state.

73 17 (2) (b) The grain dealer files a bond with the department

73 18 in the amount of one hundred thousand dollars payable to the

73 19 department.

73 20 (2) (a) The bond filed with the department under this


73 21 paragraph shall be used to indemnify sellers for losses

73 22 resulting from a breach of a credit=sale contract as provided

73 23 by rules adopted by the department. The rules shall include,

73 24 but are not limited to, procedures and criteria for providing

73 25 notice, filing claims, valuing losses, and paying claims. The

73 26 bond provided in this paragraph shall be in addition to any

73 27 other bond required in this chapter.

73 28 (b) A The bond filed with the department under this



73 29 paragraph shall not be canceled by the issuer on less than

73 30 ninety days notice by certified mail to the department and the

73 31 principal. However, if an adequate replacement bond is filed

73 32 with the department, the department may authorize the

73 33 cancellation of the original bond before the end of the

73 34 ninety=day period.

73 35 (c) If an adequate replacement bond is not received by the
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74 1 department within sixty days of the issuance of the notice of

74 2 cancellation, the department shall automatically suspend the

74 3 grain dealer's license. The department shall cause an

74 4 inspection of the licensed grain dealer immediately at the end

74 5 of the sixty=day period. If a replacement bond is not filed

74 6 within another thirty days following the suspension, the grain

74 7 dealer license shall be automatically revoked.

74 8 (3) When a license is revoked, the department shall

74 9 provide notice of the revocation by ordinary mail to the last

74 10 known address of each holder of an outstanding credit=sale

74 11 contract and all known sellers.

74 12 Sec. 81. Section 203D.1, subsection 4, Code 2009, is

74 13 amended to read as follows:

74 14 4. "First point of sale" means the initial transfer of

74 15 title to grain from a person who has produced the grain or

74 16 caused the grain to be produced the grain to the first

74 17 purchaser of the grain for consideration, conditional or

74 18 otherwise, in any manner or by any means.

74 19 Sec. 82. Section 203D.6, subsection 1, Code 2009, is

74 20 amended to read as follows:

74 21 1. PERSONS WHO MAY FILE CLAIMS == TIME OF FILING.

74 22 a. A depositor or seller may file a claim with the

74 23 department for indemnification of a loss from the grain

74 24 depositors and sellers indemnity fund. A claim shall be filed

74 25 in the manner prescribed by the board.

74 26 b. (1) A claim shall not be filed prior to the incurrence




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