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Senate File 524

Partial Bill History

Bill Text

PAG LIN
  1  1                                           SENATE FILE 524
  1  2 
  1  3                             AN ACT
  1  4 PROVIDING ASSISTANCE REGARDING THE DEVELOPMENT OF GRAPES AND
  1  5    WINE AND PROVIDING FOR TAX REVENUE AND AN APPROPRIATION.
  1  6  
  1  7 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
  1  8  
  1  9    Section 1.  Section 123.183, Code 2001, is amended to read
  1 10 as follows:
  1 11    123.183  WINE GALLONAGE TAX AND RELATED FUNDS.
  1 12    1.  In addition to the annual permit fee to be paid by each
  1 13 class "A" wine permittee, there a wine gallonage tax shall be
  1 14 levied and collected from each class "A" wine permittee on all
  1 15 wine manufactured for sale and sold in this state at wholesale
  1 16 and on all wine imported into this state for sale at wholesale
  1 17 and sold in this state at wholesale, a.  The rate of the wine
  1 18 gallonage tax of is one dollar and seventy-five cents for
  1 19 every each wine gallon and a like.  The same rate shall apply
  1 20 for the fractional parts of a wine gallon.  A The wine
  1 21 gallonage tax shall not be levied or collected on wine sold by
  1 22 one class "A" wine permittee to another class "A" wine
  1 23 permittee.
  1 24    2.  a.  Revenue derived collected from the wine gallonage
  1 25 tax collected on wine manufactured for sale and sold in this
  1 26 state shall be deposited in the wine gallonage tax fund hereby
  1 27 as created in this section.
  1 28    b.  A wine gallonage tax fund is created in the office of
  1 29 the treasurer of state.  Moneys deposited in the gallonage tax
  1 30 the fund are appropriated to the department of economic
  1 31 development as provided in section 15E.117.  Moneys in the
  1 32 fund shall not revert to the general fund of the state without
  1 33 a specific appropriation by the general assembly are not
  1 34 subject to section 8.33.
  1 35    3.  All other The revenue collected from the wine gallonage
  2  1 tax on wine imported into this state for sale at wholesale and
  2  2 sold in this state at wholesale shall be deposited as follows:
  2  3    a.  The revenue actually collected during each fiscal year
  2  4 from the wine gallonage tax on wine imported into this state
  2  5 at wholesale and sold in this state at wholesale that is in
  2  6 excess of the revenue estimated to be collected from such tax
  2  7 as last agreed to by the state revenue estimating conference
  2  8 during the previous fiscal year as provided in section 8.22A
  2  9 shall be deposited in the grape and wine development fund as
  2 10 created in section 159B.5.  However, not more than seventy-
  2 11 five thousand dollars from such tax shall be deposited into
  2 12 the grape and wine development fund during any fiscal year.
  2 13    b.  The remaining revenue derived collected from the wine
  2 14 gallonage tax on wine imported into this state for sale at
  2 15 wholesale and sold in this state at wholesale shall be
  2 16 deposited in the liquor control fund established by created in
  2 17 section 123.53 and shall be transferred by the director of
  2 18 revenue and finance to the general fund of the state.
  2 19    Sec. 2.  NEW SECTION.  159B.1  DEFINITIONS.
  2 20    1.  "Commission" means the grape and wine development
  2 21 commission as established pursuant to section 159B.2.
  2 22    2.  "Department" means the department of agriculture and
  2 23 land stewardship.
  2 24    3.  "Fund" means the grape and wine development fund
  2 25 created pursuant to section 159B.5.
  2 26    4.  "Grower" means a person who owns a vineyard and is
  2 27 actively engaged in growing grapes on a commercial basis in
  2 28 this state for use by a winery.
  2 29    5.  "Retail seller" means a person actively engaged in the
  2 30 business of selling wine in this state on a retail basis.
  2 31    6.  "Vineyard" means a tract of land used for growing
  2 32 grapes used in making wine.
  2 33    7.  "Wine" means the same as defined in section 123.3.
  2 34    8.  "Winemaker" means a person who owns a winery and is
  2 35 actively engaged in producing wine in this state on a
  3  1 commercial basis.
  3  2    9.  "Winery" means a commercial operation using grapes for
  3  3 the production of wine on a commercial basis.
  3  4    Sec. 3.  NEW SECTION.  159B.2  GRAPE AND WINE DEVELOPMENT
  3  5 COMMISSION.
  3  6    1.  A grape and wine development commission is established
  3  7 within the department.  The commission shall be composed of
  3  8 the following persons:
  3  9    a.  The following persons, or their designees, who shall
  3 10 serve as nonvoting, ex officio members:
  3 11    (1)  The secretary of agriculture.
  3 12    (2)  The dean of the college of agriculture of Iowa state
  3 13 university of science and technology.
  3 14    (3)  The director of the department of economic
  3 15 development.
  3 16    (4)  The director of the department of natural resources.
  3 17    b.  The following persons appointed by the secretary of
  3 18 agriculture, who shall serve as voting members:
  3 19    (1)  Two growers.
  3 20    (2)  Two winemakers.
  3 21    (3)  One retail seller.
  3 22    The secretary of agriculture shall appoint the voting
  3 23 members based on a list of nominations submitted by
  3 24 organizations representing growers, winemakers, and retail
  3 25 sellers as certified by the department according to
  3 26 requirements of the department.  Appointments of voting
  3 27 members are subject to the requirements of sections 69.16 and
  3 28 69.16A.  In addition, the appointments shall be geographically
  3 29 balanced.  Unless the secretary of agriculture determines that
  3 30 it is not feasible, at least one person appointed as a voting
  3 31 member shall reside in each of the state's congressional
  3 32 districts at the time of appointment.  The secretary of
  3 33 agriculture's appointees shall be confirmed by the senate,
  3 34 pursuant to section 2.32.
  3 35    2.  The voting members shall serve three-year terms
  4  1 beginning and ending as provided in section 69.19.  However,
  4  2 the secretary of agriculture shall appoint initial members to
  4  3 serve for less than three years to ensure members serve
  4  4 staggered terms.  A member is eligible for reappointment.  A
  4  5 vacancy on the commission shall be filled for the unexpired
  4  6 portion of the regular term in the same manner as regular
  4  7 appointments are made.
  4  8    3.  The commission shall elect a chairperson from among its
  4  9 voting members each year on a rotating basis as provided by
  4 10 the commission.  The commission shall meet on a regular basis
  4 11 and at the call of the chairperson or upon the written request
  4 12 to the chairperson of two or more voting members.
  4 13    4.  Members are not entitled to receive compensation or
  4 14 reimbursement of expenses from the department as otherwise
  4 15 provided in section 7E.6.
  4 16    5.  Three voting members constitute a quorum and the
  4 17 affirmative vote of a majority of the voting members present
  4 18 is necessary for any substantive action to be taken by the
  4 19 commission.  The majority shall not include any member who has
  4 20 a conflict of interest and a statement by a member that the
  4 21 member has a conflict of interest is conclusive for this
  4 22 purpose.  A vacancy in the membership does not impair the
  4 23 duties of the commission.
  4 24    Sec. 4.  NEW SECTION.  159B.3  ADMINISTRATION.
  4 25    1.  The department shall administer this chapter and shall
  4 26 do all of the following:
  4 27    a.  Establish and administer grape and wine development
  4 28 programs as provided in section 159B.4 and account for and
  4 29 expend moneys from the grape and wine development fund created
  4 30 pursuant to section 159B.5.
  4 31    b.  Report to the commission regarding the status of grape
  4 32 and wine development, including information regarding persons
  4 33 receiving assistance under grape and wine development programs
  4 34 as provided in section 159B.4 and the status of the grape and
  4 35 wine development fund as provided in section 159B.5.
  5  1    c.  Provide facilities for the commission to meet and carry
  5  2 out its powers and duties as provided in this section,
  5  3 including by staffing commission meetings.
  5  4    d.  Adopt all rules necessary to administer this chapter.
  5  5    2.  The grape and wine development commission shall oversee
  5  6 the administration of this chapter by the department and shall
  5  7 do all of the following:
  5  8    a.  Monitor conditions, practices, policies, and programs
  5  9 affecting the grape and wine development in this state.
  5 10    b.  Establish mutually beneficial relationships with local,
  5 11 state, and federal governmental agencies and local, regional,
  5 12 and national associations representing growers and winemakers.
  5 13    c.  Contract with a viticulturist or oenologist to provide
  5 14 technical assistance under grape and wine development programs
  5 15 as provided in section 159B.4.
  5 16    d.  Approve or disapprove applications for financial
  5 17 assistance under grape and wine development programs as
  5 18 provided in section 159B.4, after departmental review and
  5 19 recommendation and in accordance with rules adopted pursuant
  5 20 to this chapter.  The department shall adopt rules for
  5 21 awarding moneys to persons submitting proposals, including
  5 22 procedures for submitting applications and criteria for
  5 23 selecting proposals.
  5 24    e.  Approve rules proposed by the department for adoption
  5 25 pursuant to chapter 17A required for the administration of
  5 26 this chapter.
  5 27    Sec. 5.  NEW SECTION.  159B.4  GRAPE AND WINE DEVELOPMENT
  5 28 PROGRAMS.
  5 29    The department in cooperation with the commission shall
  5 30 establish grape and wine development programs, by assisting
  5 31 persons in establishing, improving, or expanding vineyards or
  5 32 winemaking operations, including wineries.  To every extent
  5 33 feasible, the programs shall provide assistance to persons
  5 34 located in all regions of the state.  The programs may provide
  5 35 for all of the following:
  6  1    1.  Technical assistance which may include all the
  6  2 following:
  6  3    a.  Viticultural assistance in order to increase the size
  6  4 of vineyards, improve yield, and enhance the character,
  6  5 composition, and condition of grapes.  The department may
  6  6 provide technical assistance regarding the selection and
  6  7 management of vines suitable for regions of this state;
  6  8 cultivation and harvest practices; the implementation of
  6  9 practices designed to improve grape growing based on soil
  6 10 types, nutrients and minerals, space, climate, and drainage;
  6 11 the use of recommended varieties of native or hybrid
  6 12 cultivars; and disease, weed, and pest control, including the
  6 13 safe and effective application of pesticides or herbicides or
  6 14 the use of organic practices.
  6 15    b.  Oenological assistance which may be based on
  6 16 oenological study in order to produce, preserve, and transport
  6 17 commercially viable wines, including high-quality wines, wines
  6 18 adapted to particular regions of the state, and wines with
  6 19 distinctive tastes produced from native or hybrid cultivars.
  6 20 The technical assistance may include assistance regarding
  6 21 improving practices or constructing facilities designed to
  6 22 expand or improve processing, cellarage, or bottling.
  6 23    2.  Financial assistance which shall be in the form of a
  6 24 loan, forgivable loan, loan guarantee, cost share,
  6 25 indemnification of costs, or any combination of such financing
  6 26 as deemed appropriate by the commission.  The financial
  6 27 assistance may be awarded to persons beginning or engaged in
  6 28 grape growing or winemaking, based on a sound business plan
  6 29 that demonstrates the viability of the proposed operations.
  6 30    Sec. 6.  NEW SECTION.  159B.5  GRAPE AND WINE DEVELOPMENT
  6 31 FUND.
  6 32    1.  A grape and wine development fund is created in the
  6 33 state treasury under the control of the department.  The fund
  6 34 is composed of moneys appropriated by the general assembly and
  6 35 moneys available to and obtained or accepted by the department
  7  1 from the United States or private sources for placement in the
  7  2 fund.  The fund shall include moneys deposited into the fund
  7  3 from the wine gallonage tax as provided in section 123.183.
  7  4    2.  Moneys in the fund are appropriated to the department
  7  5 exclusively to carry out grape and wine development programs
  7  6 as provided in section 159B.4, including contracting with a
  7  7 viticulturist or oenologist to provide technical assistance
  7  8 and to provide financial assistance to growers and winemakers
  7  9 as provided in that section.
  7 10    3.  Section 8.33 shall not apply to moneys in the fund.
  7 11 Notwithstanding section 12C.7, moneys earned as income or
  7 12 interest from the fund shall remain in the fund until expended
  7 13 as provided in this section.  
  7 14 
  7 15 
  7 16                                                             
  7 17                               MARY E. KRAMER
  7 18                               President of the Senate
  7 19 
  7 20 
  7 21                                                             
  7 22                               BRENT SIEGRIST
  7 23                               Speaker of the House
  7 24 
  7 25    I hereby certify that this bill originated in the Senate and
  7 26 is known as Senate File 524, Seventy-ninth General Assembly.
  7 27 
  7 28 
  7 29                                                             
  7 30                               MICHAEL E. MARSHALL
  7 31                               Secretary of the Senate
  7 32 Approved                , 2001
  7 33 
  7 34 
  7 35                                
  8  1 THOMAS J. VILSACK
  8  2 Governor
     

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