House File 2465 - Introduced HOUSE FILE 2465 BY ISENHART and ANDERSON A BILL FOR An Act providing for a state assessment for clean water 1 imposed on agricultural commodities, including establishing 2 procedures for referendums to establish, continue, or 3 terminate the state assessment, the transfer of moneys to 4 the department of agriculture and land stewardship, and the 5 appropriation of moneys. 6 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 7 TLSB 5561YH (8) 86 da/rj

H.F. 2465 DIVISION I 1 IOWA DAIRY INDUSTRY COMMISSION AND 2 IOWA STATE DAIRY ASSOCIATION 3 Section 1. Section 179.1, Code 2016, is amended by adding 4 the following new subsections: 5 NEW SUBSECTION . 01. “Assessment” means an excise tax on the 6 sale of milk which may include a state assessment for direct 7 use and a state assessment for water. 8 NEW SUBSECTION . 2A. “Federal Act” means the Dairy Product 9 Stabilization Act of 1983, 7 U.S.C. §4501 et seq. 10 NEW SUBSECTION . 3A. “National assessment” means an excise 11 tax on the sale of milk imposed pursuant to the federal Act. 12 NEW SUBSECTION . 10. “Secretary” means the secretary of 13 agriculture. 14 Sec. 2. Section 179.1, subsection 2, Code 2016, is amended 15 to read as follows: 16 2. The term “commission” shall mean “Commission” means the 17 Iowa dairy industry commission created in section 179.2 . 18 Sec. 3. Section 179.2, subsections 4, 5, 6, and 7, Code 19 2016, are amended to read as follows: 20 4. a. When a national promotional order is established by 21 the United States department of agriculture pursuant to the 22 Dairy Product Stabilization Act of 1983 federal Act , collection 23 of the excise tax state assessment for direct use described in 24 section 179.5 shall be suspended for the period in which the 25 national order is in effect. The commission shall continue to 26 operate thereafter for only the period of time necessary to pay 27 refunds and disburse the funds moneys remaining in the dairy 28 industry fund for the purposes enumerated in administering 29 this chapter . Upon completion of these acts, the existence of 30 the Iowa dairy industry commission shall be suspended. The 31 secretary of agriculture shall certify the suspension of the 32 commission as of a date certain to the Iowa dairy industry 33 commission and the Iowa state dairy association. When the 34 existence of the commission is suspended, the terms of office 35 -1- LSB 5561YH (8) 86 da/rj 1/ 114

H.F. 2465 being served by individual commissioners shall terminate. 1 b. The establishment of a national promotional order shall 2 not affect the imposition of a state assessment for clean water 3 established pursuant to section 179.13A. 4 5. When the national promotional order expires, the period 5 of suspension of the excise tax state assessment for direct use 6 established in section 179.5 shall terminate and the secretary 7 of agriculture shall take the steps necessary to collect that 8 excise tax state assessment and otherwise fulfill the duties of 9 the commission, except that of expending funds moneys collected 10 under the excise tax that state assessment , until those 11 duties can be resumed by the reactivated commission. When the 12 national promotional order expires, the period of suspension of 13 the commission shall terminate. The secretary of agriculture 14 shall call the first meeting of the reactivated commission. 15 Upon reactivation, the commission shall reimburse the secretary 16 of agriculture for expenses incurred in carrying out the duties 17 provided in this subsection . 18 6. When the national dairy promotion program expires and 19 the suspension of the Iowa dairy industry commission terminates 20 pursuant to subsection 5 , all first purchasers shall, in a 21 manner designed to reflect their proportionate contributions 22 to the national dairy promotion program in its most recently 23 completed fiscal year, nominate two resident producers for each 24 of the sixteen offices of the commission. The secretary of 25 agriculture shall then appoint one nominee from each set of 26 two nominees as commissioners of the reactivated Iowa dairy 27 industry commission. The secretary of agriculture shall 28 stagger the terms of the reactivated commission resulting in 29 as nearly as possible one third of the commissioners serving 30 for one year, one third of the commissioners serving for two 31 years, and one third of the commissioners serving for three 32 years. After the initial staggering of terms by the secretary, 33 commissioners shall be appointed to three-year terms. 34 7. The establishment or expiration of a national 35 -2- LSB 5561YH (8) 86 da/rj 2/ 114

H.F. 2465 promotional order shall not affect the imposition of a state 1 assessment for clean water established pursuant to section 2 179.13A. 3 7. 8. After the reactivated commission has been formed, 4 nominations for commissioners shall be made by first 5 purchasers in a manner designed to reflect their proportionate 6 contributions to the Iowa dairy industry commission in its most 7 recently completed fiscal year. 8 Sec. 4. Section 179.3, Code 2016, is amended by adding the 9 following new subsection: 10 NEW SUBSECTION . 10. To cooperate with the division of soil 11 conservation and water quality of the department of agriculture 12 and land stewardship in transferring moneys collected from 13 the state assessment for clean water to the clean water fund 14 created in section 466B.51. 15 Sec. 5. Section 179.4, Code 2016, is amended to read as 16 follows: 17 179.4 Expenditure of funds Use of moneys . 18 Funds collected through Moneys collected by the commission 19 from the excise tax are to state assessment for direct use 20 imposed pursuant to section 179.5 shall be used for purposes 21 of advertising and promotion, product, process, and nutrition, 22 dietetics, and physiology research, nutrition education, public 23 relations, research and development, and for other activities 24 that contribute to producer efficiency and productivity. 25 In addition, the commission shall use these funds moneys 26 to maintain existing markets, to make contributions to 27 organizations working toward the purposes of this section , 28 and to assist in the development of new or enlarged markets 29 for milk, both domestic and foreign. The primary purpose for 30 use of these funds moneys is to increase consumption of milk. 31 The commission may contract for advertising, publicity, sales 32 promotion, research, and educational services the committee 33 commission deems appropriate to further the objectives of this 34 section . 35 -3- LSB 5561YH (8) 86 da/rj 3/ 114

H.F. 2465 Sec. 6. Section 179.5, Code 2016, is amended to read as 1 follows: 2 179.5 Excise tax —— administration of moneys —— 3 appropriation. 4 1. a. There is levied and imposed an excise tax a state 5 assessment for direct use on all producers within the state 6 at a rate of three-fourths of one percent of the gross value 7 of milk produced in the state and which may be continued by 8 special referendum as provided in section 179.13A . 9 b. There is imposed a state assessment for clean water on 10 all producers within the state at a rate established by the 11 commission not to exceed the rate of the state assessment for 12 direct use described in paragraph “a” , if the state assessment 13 for clean water is established or continued pursuant to section 14 179.13A. 15 2. All taxes levied and The state assessment for direct use 16 and the state assessment for clean water imposed under this 17 chapter shall be deducted from the sales price received by the 18 producer and shall be collected by the first purchaser, except 19 as follows: 20 a. If the producer produces milk from cows and sells the 21 milk directly to the consumer, the taxes each state assessment 22 shall be remitted by that producer. 23 b. If the producer sells milk to a first purchaser outside 24 the state, the taxes are each state assessment is due and 25 payable by that producer before the shipment is made, except 26 that the commission may make agreements with extra state 27 purchasers for the keeping of records and the collection of the 28 taxes each state assessment as necessary to secure the payment 29 of the taxes each state assessment within the time fixed by 30 this chapter . 31 3. All taxes levied and The state assessment for direct use 32 and the state assessment for clean water if established and 33 imposed under this chapter , and any other contributions made to 34 the dairy industry commission , shall be paid to and collected 35 -4- LSB 5561YH (8) 86 da/rj 4/ 114

H.F. 2465 by the commission within thirty days after the end of the month 1 during which the milk was marketed. 2 4. The commission shall remit moneys collected from 3 the taxes state assessment for direct use and any other 4 contributions obtained by the commission to the treasurer of 5 the state each quarter, and at the same time shall render to 6 the director of the department of administrative services an 7 itemized and verified report showing the source from which 8 the taxes moneys collected from the state assessment for 9 direct use and voluntary contributions were obtained. All 10 taxes moneys collected from the state assessment for direct 11 use and voluntary contributions received, collected, and 12 remitted by the commission shall be placed in a special fund 13 by the treasurer of state and the director of the department 14 of administrative services, to be known as the “dairy industry 15 fund” to be used by the Iowa dairy industry commission for 16 the purposes set out in this chapter and to administer and 17 enforce the laws relative to this chapter . The department of 18 administrative services shall transfer moneys from the fund 19 to the commission for deposit into an account established 20 by the commission in a qualified financial institution. 21 The department shall transfer the moneys as provided in a 22 resolution adopted by the commission. However, the department 23 is only required to transfer moneys once during each day and 24 only during hours when the offices of the state are open. 25 Moneys deposited in the fund and transferred to the commission 26 as provided in this section are appropriated and shall be used 27 for the purpose of carrying out the provisions of this chapter . 28 5. The commission may deposit moneys collected from the 29 state assessment for clean water in a qualified financial 30 institution until transferred to the clean water fund 31 created in section 466B.51. During the period when a 32 national promotional order is in effect, the Iowa state dairy 33 association shall deposit the moneys collected from that 34 state assessment for clean water in a qualified financial 35 -5- LSB 5561YH (8) 86 da/rj 5/ 114

H.F. 2465 institution until transferred to the clean water fund. If the 1 state assessment for clean water is terminated as provided in 2 section 179.13A, the remaining moneys collected from that state 3 assessment shall be immediately transferred to the clean water 4 fund. 5 6. The commission may require that the invoice also show the 6 total amount of any state assessment for direct use deducted 7 from the sales price. If a national assessment is being 8 collected, the Iowa state dairy association may require that 9 the invoice for the national assessment also show the total 10 amount of any national assessment, if permitted by federal law. 11 If a state assessment for clean water is collected, the first 12 purchaser shall furnish the producer at the time of payment an 13 invoice showing the total amount of the state assessment for 14 clean water deducted from the sales price. 15 4. 7. a. A person from whom the excise tax provided in 16 this chapter a state assessment for direct use is collected 17 may, by application filed with the commission within thirty 18 days after the collection of the tax state assessment , have the 19 tax state assessment refunded to that person by the commission. 20 b. If a state assessment for direct use is imposed, a person 21 from whom a state assessment for clean water is collected 22 may file an application for a refund with the commission. 23 The application for a refund shall allow the person to elect 24 whether the refund is for the state assessment for direct 25 use or the state assessment for clean water or both. The 26 commission shall not approve an application unless the 27 application indicates the election. The commission shall 28 forward an approved application for a refund of the state 29 assessment to the division of soil conservation and water 30 quality for payment. 31 c. If a national assessment is imposed and a refund of the 32 national assessment is authorized, a person from whom a state 33 assessment for clean water is collected may file an application 34 for a refund with the Iowa state dairy association. The 35 -6- LSB 5561YH (8) 86 da/rj 6/ 114

H.F. 2465 application shall to the extent allowed by federal law allow 1 the person to elect whether the refund is for the national 2 assessment or the state assessment for clean water or both. 3 The association shall forward the approved application for a 4 refund of the state assessment for clean water to the division 5 of soil conservation and water quality for payment. 6 Sec. 7. Section 179.6, Code 2016, is amended to read as 7 follows: 8 179.6 Records of producers, first purchasers. 9 Every producer shipping milk to a first purchaser outside of 10 Iowa who is not by agreement with the commission collecting the 11 tax state assessment for direct use or the state assessment for 12 clean water imposed by this chapter , and every first purchaser 13 within the state, and every producer distributing milk directly 14 to the consumer, shall keep a complete and accurate record of 15 all milk produced or purchased by the person during the period 16 for which an excise tax levy a state assessment is imposed 17 under this chapter . The records shall be in the form and 18 contain the information prescribed by the commission, shall be 19 preserved by the person charged with their making for a period 20 of two years, and shall be offered or submitted for inspection 21 at any time upon written or oral request by the commission or 22 its duly authorized agent or employee. 23 Sec. 8. Section 179.8, Code 2016, is amended to read as 24 follows: 25 179.8 Payment of expenses —— limitation. 26 1. No part of the expense incurred by the commission 27 shall be paid out of moneys in the state treasury except 28 moneys transferred to the commission from the dairy industry 29 fund. Moneys transferred from the fund to the commission, as 30 provided in section 179.5 , shall be used for the payment of 31 all salaries, and other expenses necessary, to carry out the 32 provisions of this chapter . However, in no event shall the 33 total expenses exceed the total taxes amount collected from the 34 state assessment for direct use collected and transferred from 35 -7- LSB 5561YH (8) 86 da/rj 7/ 114

H.F. 2465 the fund to the commission. 1 2. No more than five percent of the excise tax collected 2 moneys collected from the state assessment for direct use and 3 received by the commission pursuant to section 179.5 shall be 4 utilized for administrative expenses of the commission. 5 Sec. 9. Section 179.9, Code 2016, is amended to read as 6 follows: 7 179.9 Investigations by commission. 8 The commission shall have the power to cause its authorized 9 agents to enter upon the premises of any person charged by this 10 chapter or by agreement with the commission with the collection 11 of the excise tax a state assessment for direct use or a state 12 assessment for clean water imposed by this chapter , and to 13 cause to be examined by any such agent any books, records, 14 documents, or other instruments bearing upon the amount of 15 moneys from such tax state assessment collected or to be 16 collected by such person; provided that the commission has 17 reasonable ground to believe that all moneys from the tax state 18 assessment herein levied has imposed have not been collected, 19 or if it has they have not been fully accounted for as herein 20 provided. 21 Sec. 10. Section 179.10, Code 2016, is amended to read as 22 follows: 23 179.10 Report. 24 The commission shall each year prepare and submit a report 25 summarizing the activities of the commission under this chapter 26 to the auditor of state and the secretary of agriculture . The 27 report shall show all income, expenses, and other relevant 28 information concerning fees the state assessment for direct 29 use collected and expended under this chapter . The report 30 shall also show the collection and transfer of moneys received 31 from any state assessment for clean water imposed under this 32 chapter. 33 Sec. 11. Section 179.13, Code 2016, is amended to read as 34 follows: 35 -8- LSB 5561YH (8) 86 da/rj 8/ 114

H.F. 2465 179.13 Referendum Initial referendum . 1 1. a. At a time designated by the commission within 2 eighteen months after termination of the national promotional 3 order made pursuant to the Dairy Product Stabilization 4 federal Act of 1983 , the commission shall conduct a an initial 5 referendum under administrative procedures prescribed by the 6 department. 7 b. Upon signing a statement certifying to the department 8 that the person is a bona fide producer as defined in this 9 chapter , each producer is entitled to one vote in each initial 10 referendum. When the secretary is required to determine the 11 approval or disapproval of producers under this section , the 12 secretary shall consider the approval or disapproval of a 13 cooperative association of producers, engaged in a bona fide 14 manner in marketing milk, as the approval or disapproval of the 15 producers who are members of or contract with the cooperative 16 association of producers. If a cooperative association 17 elects to vote on behalf of its members, the cooperative 18 association shall provide each producer on whose behalf the 19 cooperative association is expressing approval or disapproval 20 with a description of the question presented in the initial 21 referendum together with a statement of the manner in which 22 the cooperative association intends to cast its vote on behalf 23 of the membership. The information shall inform the producer 24 of procedures to follow to cast an individual ballot if the 25 producer chooses to do so within the period of time established 26 by the secretary for casting ballots. The notification shall 27 be made at least thirty days prior to the initial referendum 28 and shall include an official ballot. The ballots shall be 29 tabulated by the secretary and the vote of the cooperative 30 association shall be adjusted to reflect the individual votes. 31 c. The department shall count and tabulate the ballots 32 filed during the initial referendum within thirty days of the 33 close of the initial referendum. If from the tabulation the 34 department determines that a majority of the total number of 35 -9- LSB 5561YH (8) 86 da/rj 9/ 114

H.F. 2465 producers voting in the initial referendum favors the proposal, 1 the excise tax state assessment for direct use provided for in 2 this chapter shall be continued. The ballots cast pursuant 3 to this section constitute complete and conclusive evidence 4 for use in determinations made by the department under this 5 chapter . 6 2. The secretary may conduct a special referendum at any 7 time after the Iowa dairy industry commission is reactivated, 8 and shall hold a conduct a special referendum on request upon 9 receiving a petition of a representative group comprising ten 10 percent or more of the number of producers eligible to vote, 11 to determine whether the producers favor the termination or 12 suspension or termination of the excise tax state assessment 13 for direct use . The secretary shall suspend or terminate 14 collection of the excise tax within state assessment for direct 15 use not later than six months after the secretary determines 16 that suspension or termination of the excise tax state 17 assessment is favored by a majority of the producers voting 18 in the special referendum, and shall suspend or terminate the 19 excise tax state assessment in an orderly manner as soon as 20 practicable after the determination. 21 Sec. 12. NEW SECTION . 179.13A Referendums and special 22 questions —— establishment, increase, or termination of a state 23 assessment. 24 1. a. If a state assessment for direct use is established, 25 and upon receipt of a petition of producers that otherwise 26 complies with requirements to conduct an initial referendum 27 under section 179.13, subsection 1, the secretary shall conduct 28 a special referendum to determine whether to establish a state 29 assessment for clean water. 30 b. Upon receipt of a petition of producers that otherwise 31 complies with requirements to conduct an initial referendum 32 under section 179.13, the secretary shall include as part of 33 the initial referendum conducted pursuant to section 179.13, 34 subsection 1, a separate special question whether to establish 35 -10- LSB 5561YH (8) 86 da/rj 10/ 114

H.F. 2465 a state assessment for clean water, if the secretary determines 1 the inclusion of the special question is cost-effective or the 2 petition demands inclusion. 3 c. The secretary shall conduct the special referendum under 4 this subsection or include the special question as part of an 5 initial or special referendum conducted under section 179.13, 6 subsection 1, in consultation with the commission and which 7 may be based on the same procedures for conducting an initial 8 referendum under section 179.13. 9 d. If the secretary determines that the establishment of 10 a state assessment for clean water is favored by a majority 11 of the producers voting in a special referendum under this 12 subsection or in an initial referendum conducted under section 13 179.13, subsection 1, that includes a special question as 14 provided in paragraph “b” , the state assessment shall commence 15 on a date determined by the secretary after consultation with 16 the commission but not later than six months after the date 17 that the special or initial referendum was conducted. 18 2. a. If a national assessment is being collected, and upon 19 receipt of a petition of producers that otherwise complies with 20 requirements to conduct an initial referendum under section 21 179.13, subsection 1, the secretary shall conduct a special 22 referendum to determine whether to establish a state assessment 23 for clean water. 24 b. Upon receipt of a petition of producers that otherwise 25 complies with requirements to conduct an initial referendum 26 under section 179.13, subsection 1, the secretary shall include 27 as part of the referendum to establish a national assessment, 28 a separate special question whether to establish a state 29 assessment for clean water, if the secretary determines the 30 inclusion of the special question complies with federal law and 31 either is cost-effective or the petition demands inclusion. 32 c. The secretary shall conduct the special referendum under 33 this subsection or include the special question as part of a 34 referendum to establish a national referendum in consultation 35 -11- LSB 5561YH (8) 86 da/rj 11/ 114

H.F. 2465 with the Iowa state dairy association and which may be based on 1 the same procedures for conducting an initial referendum under 2 section 179.13, subsection 1, or a referendum to establish a 3 national assessment. 4 d. If the secretary determines that the establishment of a 5 state assessment for clean water is favored by a majority of 6 the producers voting in a special referendum conducted under 7 paragraph “a” or a referendum to establish a national assessment 8 that includes a special question as provided in paragraph “b” , 9 the state assessment shall commence on a date determined by 10 the secretary after consultation with the Iowa state dairy 11 association but not later than six months after the date that 12 the special referendum or referendum establishing a national 13 assessment was conducted. 14 3. a. If the rate of the national assessment has been 15 increased, and upon receipt of a petition of producers that 16 otherwise complies with requirements to conduct an initial 17 referendum under section 179.13, subsection 1, the secretary 18 shall conduct a special referendum to determine whether to 19 increase the rate of the state assessment for clean water to 20 a rate established by the Iowa state dairy association not to 21 exceed the rate of the national assessment. 22 b. Upon receipt of a petition of producers that otherwise 23 complies with requirements to conduct an initial referendum 24 under section 179.13, subsection 1, the secretary shall include 25 as part of a referendum to increase the rate of the national 26 assessment, a separate special question whether to increase 27 the rate of the state assessment for clean water at a rate 28 established by the Iowa state dairy association not to exceed 29 the increase in the national assessment, if the secretary 30 determines the inclusion of the special question complies 31 with federal law and is either cost-effective or the petition 32 demands inclusion. 33 c. The secretary shall conduct the special referendum under 34 this subsection, or include the special question as part of a 35 -12- LSB 5561YH (8) 86 da/rj 12/ 114

H.F. 2465 referendum to increase the national assessment, in consultation 1 with the Iowa state dairy association and which may be based on 2 the same procedures for conducting an initial referendum under 3 section 179.13, subsection 1, or a referendum to increase the 4 rate of the national assessment. 5 d. If the national assessment is increased, and the 6 secretary determines that an increase in the state assessment 7 for clean water is favored by a majority of the producers 8 voting in a special referendum or referendum to increase 9 the rate of the national assessment, the rate of the state 10 assessment shall be increased on a date determined by the 11 secretary after consultation with the Iowa state dairy 12 association but not later than six months after the date that 13 the special referendum or referendum establishing a national 14 assessment was conducted. If a special referendum or special 15 question to increase the rate of the state assessment for clean 16 water does not pass, the result of the vote shall not affect 17 the existence or length of the period when the state assessment 18 is in effect. 19 4. a. If a state assessment for direct use is imposed, 20 and upon receipt of a petition of producers that otherwise 21 complies with requirements to conduct a special referendum 22 under section 179.13, subsection 2, the secretary shall conduct 23 a special referendum to determine whether to terminate the 24 state assessment for clean water. 25 b. Upon receipt of a petition of producers that otherwise 26 complies with requirements to conduct a special referendum 27 under section 179.13, subsection 2, the secretary shall include 28 as part of a special referendum to suspend or terminate the 29 state assessment for direct use conducted pursuant to section 30 179.13, subsection 2, a separate special question whether 31 to terminate the state assessment for clean water, if the 32 secretary determines the inclusion of the special question is 33 cost-effective or the petition demands inclusion. 34 c. The secretary shall conduct the special referendum under 35 -13- LSB 5561YH (8) 86 da/rj 13/ 114

H.F. 2465 this subsection or include the special question as part of a 1 special referendum conducted under section 179.13, subsection 2 2, in consultation with the commission and which may be based 3 on the same procedures for conducting a special referendum 4 under section 179.13, subsection 2. 5 d. If the secretary determines that the termination of 6 a state assessment for clean water is favored by a majority 7 of the producers voting in a special referendum under this 8 subsection, or a special referendum conducted under section 9 179.13, subsection 2, the state assessment shall terminate on a 10 date determined by the secretary after consultation with the 11 commission but not later than six months after the date that 12 the special or initial referendum was conducted. The secretary 13 shall terminate the state assessment in an orderly manner as 14 soon as practical. 15 5. The secretary shall terminate the state assessment for 16 clean water upon determining that the state assessment for 17 direct use and the national assessment are terminated. The 18 secretary shall terminate the state assessment for clean water 19 in an orderly manner as soon as practical. 20 DIVISION II 21 IOWA BEEF CATTLE PRODUCERS ASSOCIATION —— EXECUTIVE COMMITTEE 22 Sec. 13. Section 181.1, subsection 3, Code 2016, is amended 23 by striking the subsection and inserting in lieu thereof the 24 following: 25 3. “Executive committee” means the executive committee of 26 the association as created in section 181.3 . 27 Sec. 14. Section 181.1, subsection 6, paragraph b, Code 28 2016, is amended to read as follows: 29 b. The person acquired ownership of cattle to facilitate 30 the transfer of ownership of such cattle from the seller to a 31 third party; resold such cattle no later than ten days from the 32 date on which the person acquired ownership; and certified as 33 required by rules adopted by the council executive committee . 34 Sec. 15. Section 181.1, subsection 10, Code 2016, is amended 35 -14- LSB 5561YH (8) 86 da/rj 14/ 114

H.F. 2465 to read as follows: 1 10. “State assessment” means an excise tax on the sale of 2 cattle imposed pursuant to this chapter which may include a 3 state assessment for direct use and a state assessment for 4 clean water . 5 Sec. 16. Section 181.2, Code 2016, is amended to read as 6 follows: 7 181.2 Duties and objects of association. 8 The Iowa beef cattle producers association shall do all of 9 the following: 10 1. Aid in the marketing and promotion of the cattle industry 11 of the state. 12 2. Provide for practical and scientific instruction in 13 the breeding and raising of cattle Conduct research on beef 14 production and evaluate Iowa beef production needs . 15 3. Make demonstrations in the feeding of cattle and publish 16 suggestions beneficial to such business Provide educational 17 materials and opportunities to consumers, producers, and youth 18 regarding the benefits of Iowa’s beef cattle industry . 19 4. Aid and promote cattle feeding contests, shows, and 20 sales. 21 5. 4. Prepare an annual report of the proceedings and 22 expenditures of the council executive committee as provided in 23 section 181.18B . 24 5. Cooperate with the division of soil conservation and 25 water quality of the department of agriculture and land 26 stewardship in transferring moneys collected from the state 27 assessment for clean water to the clean water fund created 28 in section 466B.51 and for being reimbursed for reasonable 29 expenses incurred in conducting an initial or special 30 referendum to establish, continue, or terminate a state 31 assessment for clean water. 32 Sec. 17. Section 181.3, Code 2016, is amended to read as 33 follows: 34 181.3 Iowa beef industry council Executive committee —— 35 -15- LSB 5561YH (8) 86 da/rj 15/ 114

H.F. 2465 creation and operation . 1 1. An Iowa beef industry council executive committee of the 2 Iowa beef cattle producers association is created. The council 3 executive committee consists of eight ten members, including 4 all of the following: 5 a. Five producers elected by the Iowa beef cattle producers 6 association pursuant to section 181.6A . 7 b. Two producers appointed by the Iowa cattlemen’s 8 association. 9 c. One livestock market representative appointed pursuant to 10 subsection 2 . 11 c. d. The secretary of agriculture or a designee, who shall 12 serve as a voting an ex officio , voting member. 13 d. e. The dean of the college of agriculture and life 14 sciences of Iowa state university of science and technology or 15 a designee, who shall serve as a voting an ex officio , voting 16 member. 17 2. The Iowa livestock auction market association shall 18 nominate two livestock market representatives. The secretary 19 of agriculture shall appoint one of the nominees or another 20 livestock market representative of the secretary’s choice, who 21 shall serve at the pleasure of the secretary. 22 3. The council executive committee shall elect a 23 chairperson, secretary, and other officers it deems necessary. 24 4. a. A member who is a producer or livestock market 25 representative described in subsection 1 , paragraphs “a” 26 through “c” , shall serve a three-year term. The member shall 27 not serve more than two consecutive full terms. 28 b. Except for an ex officio members member , vacancies a 29 vacancy in the council executive committee resulting from 30 death, inability or refusal to serve, or failure to meet the 31 qualifications of this chapter shall be filled by the council 32 executive committee . If the council executive committee fails 33 to fill a vacancy, the secretary shall fill it. Vacancy 34 appointments A vacancy appointment shall be filled only for the 35 -16- LSB 5561YH (8) 86 da/rj 16/ 114

H.F. 2465 remainder of the unexpired term. 1 Sec. 18. Section 181.4, Code 2016, is amended to read as 2 follows: 3 181.4 Employees of council Executive committee —— employees . 4 The council executive committee may employ two or more 5 competent persons who shall devote their entire time, under 6 the direction of the council executive committee , in carrying 7 out the provisions of this chapter . The salary of persons so 8 employed shall be set by the council executive committee , and 9 the persons shall hold office at the pleasure of the council 10 executive committee . 11 Sec. 19. Section 181.6A, Code 2016, is amended to read as 12 follows: 13 181.6A Election of council Executive committee —— election . 14 1. The Iowa beef cattle producers association shall hold an 15 annual meeting of producers. An election shall be held at the 16 annual meeting, as necessary, for election of producers to the 17 council executive committee . 18 2. Prior to the annual meeting, the association shall 19 appoint a nominating committee. At least sixty days prior to 20 the annual meeting of the association, the nominating committee 21 shall nominate two producers as candidates for each position 22 on the council executive committee for which an election is to 23 be held. At least forty-five days prior to the annual meeting 24 of the association, additional candidates may be nominated by 25 a written petition of fifty producers. Procedures governing 26 the place of filing and the contents of the petition shall be 27 promulgated and publicized by the council executive committee . 28 3. Producers attending the annual meeting of the 29 association may vote for one nominee for each position on the 30 council executive committee for which an election is held. 31 Producers not attending the annual meeting of the association 32 may vote by absentee ballot if the ballot is requested and 33 mailed, with proper postage, to the council executive committee 34 prior to the annual meeting of the association. For each 35 -17- LSB 5561YH (8) 86 da/rj 17/ 114

H.F. 2465 position for which an election is held, the candidate receiving 1 the highest number of votes shall be elected. 2 4. Notice of election for council executive committee 3 membership shall be given by the council executive committee by 4 publication in a newspaper of general circulation in the state 5 and in any other reasonable manner as determined by the council 6 executive committee , and shall set forth the date, time, and 7 place of the annual meeting of the association. The council 8 executive committee shall administer the elections, with the 9 assistance of the secretary. 10 Sec. 20. Section 181.7, Code 2016, is amended to read as 11 follows: 12 181.7 Research Executive committee —— research and education 13 programs. 14 The council executive committee shall initiate, administer, 15 or participate in research and education programs directed 16 toward the better and more efficient production, promotion, and 17 utilization of cattle and the marketing of products made from 18 cattle. The council executive committee shall provide for the 19 methods and means that it determines are necessary to further 20 the purposes of this section , including but not limited to any 21 of the following: 22 1. Providing public relations and other promotion 23 techniques for the maintenance of present markets. 24 2. Making donations to nonprofit organizations furthering 25 the purposes of this section . 26 3. Assisting in the development of new or larger domestic 27 markets for products made from cattle. 28 4. Assisting in the development of new or larger foreign 29 markets for cattle and products made from cattle. 30 Sec. 21. Section 181.7A, Code 2016, is amended to read as 31 follows: 32 181.7A Commencement of federal assessment —— suspension and 33 recommencement of state assessment —— rate . 34 1. Prior to the commencement of the collection of the 35 -18- LSB 5561YH (8) 86 da/rj 18/ 114