Text: HF00526                           Text: HF00528
Text: HF00500 - HF00599                 Text: HF Index
Bills and Amendments: General Index     Bill History: General Index



House File 527

Partial Bill History

Bill Text

PAG LIN
  1  1    Section 1.  Section 123.183, Code 2001, is amended to read
  1  2 as follows:
  1  3    123.183  WINE GALLONAGE TAX AND RELATED FUNDS.
  1  4    1.  In addition to the annual permit fee to be paid by each
  1  5 class "A" wine permittee, there a wine gallonage tax shall be
  1  6 levied and collected from each class "A" wine permittee on all
  1  7 wine manufactured for sale and sold in this state at wholesale
  1  8 and on all wine imported into this state for sale at wholesale
  1  9 and sold in this state at wholesale, a.  The rate of wine
  1 10 gallonage tax of is one dollar and seventy-five cents for
  1 11 every each wine gallon and a like.  The same rate shall apply
  1 12 for the fractional parts of a wine gallon.  A The wine
  1 13 gallonage tax shall not be levied or collected on wine sold by
  1 14 one class "A" wine permittee to another class "A" wine
  1 15 permittee.
  1 16    2.  a.  Revenue derived collected from the wine gallonage
  1 17 tax collected on wine manufactured for sale and sold in this
  1 18 state shall be deposited in the wine gallonage tax fund hereby
  1 19 as created in this section.
  1 20    b.  A wine gallonage tax fund is created in the office of
  1 21 the treasurer of state.  Moneys deposited in the gallonage tax
  1 22 fund are appropriated to the department of economic
  1 23 development for use as provided in section 15E.117.  Moneys in
  1 24 the fund shall not revert to the general fund of the state
  1 25 without a specific appropriation by the general assembly are
  1 26 not subject to section 8.33.
  1 27    3.  All other Of the amount of revenue collected from the
  1 28 wine gallonage tax on wine imported into this state for sale
  1 29 at wholesale and sold in this state at wholesale, the first
  1 30 ten cents shall be deposited in the grape development fund as
  1 31 created in section 187.8.  The remaining revenue derived
  1 32 collected from the wine gallonage tax on wine imported into
  1 33 this state for sale at wholesale and sold in this state at
  1 34 wholesale shall be deposited in the liquor control fund
  1 35 established by created in section 123.53 and shall be
  2  1 transferred by the director of revenue and finance to the
  2  2 general fund of the state.
  2  3    Sec. 2.  NEW SECTION.  187.1  DEFINITIONS.
  2  4    1.  "Commission" means the Iowa grape development
  2  5 commission as established pursuant to section 187.2.
  2  6    2.  "Food" means the same as defined in section 137D.1.
  2  7    3.  "Fund" means the grape development fund created
  2  8 pursuant to section 187.8.
  2  9    4.  "Grape processing facility" or "facility" means a
  2 10 commercial operation located in this state actively engaged in
  2 11 processing grapes into food, including but not limited to
  2 12 table grapes, wines, juices, raisins, jams, jellies, or
  2 13 preserves.
  2 14    5.  "Grape processor" or "processor" means a person who
  2 15 owns a processing facility and is actively engaged in
  2 16 processing grapes in this state on a commercial basis.
  2 17    6.  "Grower" means a person who owns a vineyard and is
  2 18 actively engaged in growing grapes on a commercial basis in
  2 19 this state for use by a grape processor.
  2 20    7.  "Processing" means to turn a commodity into food by
  2 21 physical or chemical modification or by cutting and packaging
  2 22 or packing.  As used in this subsection, a physical or
  2 23 chemical modification occurs by canning, freezing, drying,
  2 24 dehydrating, cooking, pressing, powdering, heating, mixing,
  2 25 grinding, churning, separating, extracting, fermenting,
  2 26 eviscerating, preserving, or jarring.
  2 27    8.  "Producer" means a grower or grape processor.
  2 28    9.  "Retailer" means a person actively engaged in a
  2 29 commercial retail enterprise located in this state that sells
  2 30 grape products processed by a grape processor.
  2 31    10.  "Vineyard" means an agricultural operation used for
  2 32 growing grapes for processing.
  2 33    11.  "Wine" means the same as defined in section 123.3.
  2 34    Sec. 3.  NEW SECTION.  187.2  IOWA GRAPE DEVELOPMENT
  2 35 COMMISSION – ESTABLISHMENT AND PURPOSE.
  3  1    An Iowa grape development commission is established.  The
  3  2 purpose of the commission is to promote the development of
  3  3 grape growing and processing operations in this state,
  3  4 including by assisting regions of this state in establishing
  3  5 vineyards and grape processing facilities, and providing for
  3  6 the improvement or expansion of vineyards and grape processing
  3  7 facilities located in those regions.
  3  8    Sec. 4.  NEW SECTION.  187.3  COMMISSION MEMBERSHIP AND
  3  9 PROCEDURES.
  3 10    1.  The Iowa grape development commission shall be composed
  3 11 of the following persons:
  3 12    a.  The following persons, or their designees, who shall
  3 13 serve as nonvoting, ex officio members:
  3 14    (1)  The secretary of agriculture.
  3 15    (2)  The dean of the college of agriculture of the Iowa
  3 16 state university.
  3 17    (3)  The director of the department of economic
  3 18 development.
  3 19    (4)  The director of the department of natural resources.
  3 20    b.  A person who shall be elected by the nonvoting, ex
  3 21 officio members designated in paragraph "a" to represent a
  3 22 nonprofit corporation organized under chapter 504A which is
  3 23 exempt from taxation pursuant to section 501(c) of the
  3 24 Internal Revenue Code and which has a principal mission of
  3 25 furthering resource conservation and development within a
  3 26 region of the state.  The person shall serve as an ex officio,
  3 27 nonvoting member.  The person shall serve a term of three
  3 28 years beginning and ending as provided in section 69.19.  A
  3 29 person shall not be elected from the same region of the state
  3 30 for more than one term.
  3 31    c.  A person representing retailers who shall serve as a
  3 32 voting member.  The person shall be appointed by the governor
  3 33 from a list of nominations submitted to the governor from an
  3 34 organization representing retailers recognized by the
  3 35 governor.  The person shall serve a term of three years as
  4  1 provided by the commission.  A person shall not be appointed
  4  2 from the same region of the state for more than one term.
  4  3    d.  The following elected persons, who shall serve as
  4  4 voting members:
  4  5    (1)  Three growers.
  4  6    (2)  Three processors.
  4  7    2.  a.  The commission shall establish requirements for
  4  8 eligibility as an elected voting commission member, which
  4  9 shall be consistent with the following requirements:
  4 10    (1)  A member must be a natural person who is a resident of
  4 11 this state.  A member representing producers must be actively
  4 12 engaged as a producer or be an officer, equity owner, or
  4 13 employee of a person actively engaged as a producer.
  4 14    (2)  A producer cannot be represented more than once on the
  4 15 commission.
  4 16    b.  The commission may provide that producers meet
  4 17 different eligibility requirements in order to ensure that
  4 18 members represent different regions of the state or different
  4 19 sizes of vineyards and processing facilities.
  4 20    3.  The commission's elected voting members shall serve for
  4 21 staggered three-year terms beginning and ending as provided in
  4 22 section 69.19.
  4 23    4.  The commission shall provide for its procedures
  4 24 consistent with all of the following:
  4 25    a.  The commission shall elect a chairperson from among its
  4 26 voting members each year on a rotating basis between growers
  4 27 and processors as provided by the commission.
  4 28    b.  The commission shall meet on a regular basis and at the
  4 29 call of the chairperson or upon the written request to the
  4 30 chairperson of three or more voting members.
  4 31    c.  Four voting members constitute a quorum and the
  4 32 affirmative vote of a majority of the voting members present
  4 33 is necessary for any substantive action to be taken by the
  4 34 commission.  However, at least one grower and one grape
  4 35 processor must be present for any substantive action to be
  5  1 taken.  The majority shall not include any member who has a
  5  2 conflict of interest and a statement by a member that the
  5  3 member has a conflict of interest is conclusive for this
  5  4 purpose.  A vacancy in the membership does not impair the
  5  5 duties of the commission.
  5  6    5.  The voting members are entitled to receive
  5  7 reimbursement for necessary and actual expenses as provided in
  5  8 section 7E.6.
  5  9    Sec. 5.  NEW SECTION.  187.4  COMMISSION ELECTION
  5 10 REQUIREMENTS.
  5 11    1.  a.  The commission shall appoint one or more committees
  5 12 to nominate candidates to stand for election to the
  5 13 commission.  The members of a nominating committee
  5 14 representing growers shall nominate candidates representing
  5 15 growers, and members of the nominating committee representing
  5 16 grape processors shall nominate candidates representing grape
  5 17 processors.
  5 18    b.  The commission shall provide a notice of an election
  5 19 for membership to the commission by any means deemed
  5 20 reasonable by the commission.  The notice shall include the
  5 21 period of time for voting, voting places, and any other
  5 22 information determined necessary by the commission.
  5 23    2.  The commission shall establish requirements for voting
  5 24 in an election to the commission, consistent with all of the
  5 25 following:
  5 26    a.  A voter must be a grower or grape processor.  The
  5 27 commission may establish eligibility requirements based on the
  5 28 size of a grower's vineyard or grape processor's processing
  5 29 facility.
  5 30    b.  An eligible producer is entitled to cast one vote in
  5 31 the election.  A producer shall be entitled to cast a vote for
  5 32 nominated candidates.  The commission may provide that all
  5 33 eligible producers be entitled to cast votes for candidates
  5 34 nominated to represent growers and grape processors or that
  5 35 only eligible growers be entitled to cast votes for candidates
  6  1 nominated to represent growers and that only eligible grape
  6  2 processors be entitled to cast votes for candidates nominated
  6  3 to represent grape processors.
  6  4    3.  At the close of the election, the department of
  6  5 agriculture and land stewardship shall count and tabulate the
  6  6 ballots cast, certify the result, and report the findings to
  6  7 the commission and the secretary of state who shall keep a
  6  8 record of the ballots cast.
  6  9    4.  The commission shall appoint a producer to fill a
  6 10 member's position occurring because of a vacancy of the
  6 11 producer.  The governor shall appoint a retailer to fill a
  6 12 member's position occurring because of a vacancy of the
  6 13 retailer member in the same manner as the original appointment
  6 14 was made.  The person appointed to fill the vacancy must meet
  6 15 the same requirements as a person causing the vacancy.  The
  6 16 person shall serve for the remainder of the unexpired term.
  6 17    Sec. 6.  NEW SECTION.  187.5  COMMISSION DUTIES.
  6 18    1.  In administering this chapter, the commission shall do
  6 19 all of the following:
  6 20    a.  Administer grape development programs as provided in
  6 21 section 187.7 and account for and expend moneys from the grape
  6 22 development fund created in section 187.8.  The commission may
  6 23 contract, be a party in a legal action, and authorize payment
  6 24 from the fund for reasonable expenses.
  6 25    b.  Monitor the status of grape growing and processing in
  6 26 this state, including but not limited to practices, policies,
  6 27 and programs affecting the grape development.
  6 28    c.  Establish mutually beneficial relationships with local,
  6 29 state, and federal governmental agencies and local, regional,
  6 30 and national associations, including but not limited to the
  6 31 department of agriculture and land stewardship, the department
  6 32 of economic development, the department of natural resources,
  6 33 Iowa state university, associations representing producers and
  6 34 retailers, or organizations concerned with resource
  6 35 conservation and rural development.
  7  1    2.  The commission shall adopt rules pursuant to chapter
  7  2 17A as required in order to administer this chapter.
  7  3    3.  The commission shall not in any manner directly or
  7  4 indirectly pledge the credit of the state.
  7  5    Sec. 7.  NEW SECTION.  187.6  CONTRACTING – AGENCY
  7  6 COOPERATION.
  7  7    1.  a.  The commission may enter into a contract authorized
  7  8 under chapter 28E with a person including a private agency or
  7  9 public agency as defined in section 28E.2 in order to
  7 10 administer this chapter.
  7 11    b.  The commission may contract with a person, including
  7 12 the treasurer of state, the department of agriculture and land
  7 13 stewardship, the department of economic development, the
  7 14 department of natural resources, or Iowa state university for
  7 15 assistance necessary to administer this chapter, including
  7 16 administrative assistance in managing grape development
  7 17 programs as provided in section 187.7, legal assistance in
  7 18 preparing contracts and cost-share agreements as required
  7 19 under this chapter and in adopting rules, or to account for
  7 20 moneys deposited in and expended from the fund.
  7 21    2.  The department of agriculture and land stewardship, the
  7 22 department of economic development, the department of natural
  7 23 resources, and Iowa state university shall cooperate with the
  7 24 commission, and allow the commission to meet at its facilities
  7 25 and provide the commission with incidental services related to
  7 26 the meeting.
  7 27    Sec. 8.  NEW SECTION.  187.7  GRAPE DEVELOPMENT PROGRAMS.
  7 28    The commission shall establish grape development programs.
  7 29 The purpose of the programs is to assist regions of this state
  7 30 in establishing, improving, or expanding commercially viable
  7 31 vineyards or grape processing facilities.  The commission
  7 32 shall award moneys to an eligible applicant in order to
  7 33 support viticulture or enology by providing technical
  7 34 assistance to the region as provided in this section.
  7 35    1.  The technical assistance shall include any of the
  8  1 following:
  8  2    a.  Viticultural assistance in order to increase the size
  8  3 of vineyards, improve grape yield, and enhance the character,
  8  4 composition, and condition of grapes.  The assistance may
  8  5 include all of the following:
  8  6    (1)  The selection and management of vines suitable for
  8  7 regions of this state.
  8  8    (2)  The cultivation and harvest of grapes.
  8  9    (3)  The implementation of practices designed to improve
  8 10 grape growing based on soil types, nutrients and minerals,
  8 11 space, climate, and drainage.
  8 12    (4)  The use of recommended varieties of native or hybrid
  8 13 cultivars.
  8 14    (5)  The use of practices to control disease, weed, and
  8 15 pests, including the safe and effective application of
  8 16 pesticides or herbicides or the use of organic measures as
  8 17 provided in chapter 190C.
  8 18    b.  Vinificational assistance in order to produce,
  8 19 preserve, and transport commercially viable wines, including
  8 20 high-quality wines, wines adapted to particular regions of the
  8 21 state, and wines with distinctive tastes produced from native
  8 22 or hybrid cultivars.  The assistance shall be based on
  8 23 enological study suited to regional winemaking.  The
  8 24 assistance may include improving practices or constructing
  8 25 facilities designed to expand or improve processing and
  8 26 preservation, including but not limited to cellarage.
  8 27    2.  The commission may award technical assistance moneys to
  8 28 an applicant who satisfies requirements established by rules
  8 29 adopted by the commission.  The applicant may be one or more
  8 30 of the following:
  8 31    a.  A county or several counties applying jointly.
  8 32    b.  A county agricultural extension district as provided in
  8 33 chapter 176A.
  8 34    c.  A merged area as provided in chapter 260C.
  8 35    d.  A nonprofit corporation organized under chapter 504A
  9  1 which is exempt from taxation pursuant to section 501(c) of
  9  2 the Internal Revenue Code and which has a principal mission of
  9  3 furthering resource conservation and development within a
  9  4 region of the state.
  9  5    3.  a.  The commission shall adopt rules required for the
  9  6 submission and approval of applications.  The commission shall
  9  7 execute agreements with selected applicants necessary to
  9  8 ensure that applicants comply with requirements of this
  9  9 section and rules adopted by the department.
  9 10    b.  Moneys shall be awarded on a cost-share basis, in which
  9 11 the commission agrees to make a contribution of money in order
  9 12 to pay for not more than half of the costs related to support
  9 13 technical assistance to a region as provided in this section.
  9 14 However, the commission is not required to award moneys on a
  9 15 cost-share basis to support a viticulturist.
  9 16    Sec. 9.  NEW SECTION.  187.8  GRAPE DEVELOPMENT FUND.
  9 17    1.  A grape development fund is created in the state
  9 18 treasury under the control of the commission.  The fund is
  9 19 composed of moneys appropriated by the general assembly and
  9 20 moneys available to and obtained or accepted by the commission
  9 21 from the United States or private sources for placement in the
  9 22 fund.  The fund shall include moneys deposited in the fund
  9 23 derived from the wine gallonage tax as provided in section
  9 24 123.183.
  9 25    2.  Moneys in the fund are appropriated to the commission
  9 26 exclusively to administer grape development programs as
  9 27 provided in section 187.7 and to pay for costs incurred by the
  9 28 commission in administering this chapter.  However, not more
  9 29 than five percent of the moneys in the fund is available to
  9 30 defray administrative expenses incurred by the commission.
  9 31    3.  Section 8.33 shall not apply to moneys in the fund.
  9 32 Notwithstanding section 12C.7, moneys earned as income or
  9 33 interest from the fund shall remain in the fund until expended
  9 34 as provided in this section.
  9 35    Sec. 10.  Section 190C.1, subsection 2, Code 2001, is
 10  1 amended to read as follows:
 10  2    2.  "Agricultural commodity" includes but is not limited to
 10  3 livestock, crops, fiber, or food, such as vegetables, nuts,
 10  4 seeds, grapes, honey, eggs, or milk existing in an unprocessed
 10  5 state, which is produced on a farm and marketed for human or
 10  6 livestock consumption.
 10  7    Sec. 11.  INITIAL GRAPE DEVELOPMENT COMMISSION.  The
 10  8 secretary of agriculture shall appoint the initial producer
 10  9 members of the grape development commission as established in
 10 10 this Act based on nominations submitted by one or more
 10 11 organizations representing producers and one organization
 10 12 representing retailers.  The commission shall organize itself
 10 13 and conduct an election for permanent producer members as
 10 14 otherwise provided in this Act.  The commission shall adopt
 10 15 rules necessary to provide for staggered terms.  
 10 16                           EXPLANATION
 10 17    This bill creates a new Code chapter 187 that provides for
 10 18 developing grape growing and processing operations in this
 10 19 state, including by providing financial assistance.
 10 20    The bill establishes an Iowa grape development commission.
 10 21 The purpose of the commission is to promote the growing and
 10 22 processing of grapes in this state, including by assisting
 10 23 regions of this state in establishing vineyards and processing
 10 24 facilities, and providing for the improvement or expansion of
 10 25 vineyards and processing facilities located in those regions.
 10 26    The commission is composed of nonvoting, ex officio
 10 27 members, including the secretary of agriculture, the director
 10 28 of the department of economic development, the director of the
 10 29 department of natural resources, the dean of the college of
 10 30 agriculture of Iowa state university, or their designees, and
 10 31 a person representing a regional organization concerned with
 10 32 resource conservation and development.  The commission
 10 33 includes voting members, including three growers and three
 10 34 processors and one retail dealer of grape products.  The
 10 35 initial commission is composed of members appointed by the
 11  1 secretary of agriculture.  Those members are responsible for
 11  2 organizing the commission and conducting elections for the
 11  3 permanent commission.  The bill provides requirements for
 11  4 regular elections to the commission of members representing
 11  5 growers and processors, and for its rules of proceedings.
 11  6    The bill provides for a number of commission duties.  For
 11  7 example, the commission is responsible for monitoring the
 11  8 status of grape growing and processing in this state, and
 11  9 establishing mutually beneficial relationships with local,
 11 10 state, and federal governmental agencies and local, regional,
 11 11 and national associations.  The bill authorizes the commission
 11 12 to enter into a contract authorized under Code chapter 28E
 11 13 with a government or private entity in order to carry out the
 11 14 provisions of this chapter, including in administering
 11 15 programs and accounting for moneys appropriated for use by the
 11 16 commission.  The department of agriculture and land
 11 17 stewardship, the department of economic development, the
 11 18 department of natural resources, and Iowa state university are
 11 19 required to cooperate with the commission, and allow the
 11 20 commission to meet at their facilities at no charge.
 11 21    The bill requires the commission to establish grape
 11 22 development programs in order to assist regions of this state
 11 23 in establishing, improving, or expanding commercially viable
 11 24 vineyards or grape processing facilities.  The commission is
 11 25 required to award moneys to an eligible applicant in order to
 11 26 support technical assistance to regions of the state.  The
 11 27 commission may award the moneys to a county or several
 11 28 counties applying jointly, a council of governments, a merged
 11 29 area, or a nonprofit corporation that has a mission to promote
 11 30 conservation and development within the region.  Generally,
 11 31 moneys must be awarded on a cost-share basis, except for
 11 32 moneys used to support a viticulturist.
 11 33    The bill establishes a grape development fund which
 11 34 includes moneys derived from the wine gallonage tax as
 11 35 provided in Code section 123.183.  The bill captures for the
 12  1 grape development fund the first $.10 from the wine gallonage
 12  2 tax of $1.75 collected from the sale of wine imported into
 12  3 this state for sale at wholesale.  Moneys in the fund are
 12  4 appropriated to the commission exclusively to carry out grape
 12  5 development programs and to pay for costs incurred by the
 12  6 commission in carrying out new Code chapter 187.  Moneys in
 12  7 the fund do not revert and interest or income on moneys in the
 12  8 fund remain in the fund.
 12  9    The bill amends Code chapter 190C providing for organically
 12 10 produced agricultural commodities by adding grapes to the list
 12 11 of items that may be grown organically under the chapter.  
 12 12 LSB 1766HH 79
 12 13 da/cf/24.1
     

Text: HF00526                           Text: HF00528
Text: HF00500 - HF00599                 Text: HF Index
Bills and Amendments: General Index     Bill History: General Index

Return To Home index


© 2001 Cornell College and League of Women Voters of Iowa


Comments about this site or page? webmaster@legis.iowa.gov.
Please remember that the person listed above does not vote on bills. Direct all comments concerning legislation to State Legislators.

Last update: Wed May 9 09:40:40 CDT 2001
URL: /DOCS/GA/79GA/Legislation/HF/00500/HF00527/010306.html
jhf