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Senate Study Bill 1164

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 the 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 the fund are appropriated to the department of economic
  1 23 development as provided in section 15E.117.  Moneys in the
  1 24 fund shall not revert to the general fund of the state without
  1 25 a specific appropriation by the general assembly are not
  1 26 subject to section 8.33.
  1 27    3.  Of the amount collected from the wine gallonage tax
  1 28 that is not deposited in the wine gallonage tax fund, the
  1 29 first eighteen cents of the tax of each wine gallon shall be
  1 30 deposited to the grape and wine development fund as created in
  1 31 section 159B.5.  All other revenue derived collected from the
  1 32 wine gallonage tax shall be deposited in the liquor control
  1 33 fund established by created in section 123.53 and shall be
  1 34 transferred by the director of revenue and finance to the
  1 35 general fund of the state.
  2  1    Sec. 2.  NEW SECTION.  159B.1  DEFINITIONS.
  2  2    1.  "Commission" means the grape and wine development
  2  3 commission as established pursuant to section 159B.2.
  2  4    2.  "Department" means the department of agriculture and
  2  5 land stewardship.
  2  6    3.  "Fund" means the grape and wine development fund
  2  7 created pursuant to section 159B.5.
  2  8    4.  "Grower" means a person who owns a vineyard and is
  2  9 actively engaged in growing grapes on a commercial basis in
  2 10 this state for use by a winery.
  2 11    5.  "Retail seller" means a person actively engaged in the
  2 12 business of selling wine in this state on a retail basis.
  2 13    6.  "Vineyard" means a tract of land used for growing
  2 14 grapes used in making wine.
  2 15    7.  "Wine" means the same as defined in section 123.3.
  2 16    8.  "Winemaker" means a person who owns a winery and is
  2 17 actively engaged in producing wine in this state on a
  2 18 commercial basis.
  2 19    9.  "Winery" means a commercial operation using grapes for
  2 20 the production of wine on a commercial basis.
  2 21    Sec. 3.  NEW SECTION.  159B.2  GRAPE AND WINE DEVELOPMENT
  2 22 COMMISSION.
  2 23    1.  A grape and wine development commission is established
  2 24 within the department.  The commission shall be composed of
  2 25 the following persons:
  2 26    a.  The following persons, or their designees, who shall
  2 27 serve as nonvoting, ex officio members:
  2 28    (1)  The secretary of agriculture.
  2 29    (2)  The dean of the college of agriculture of Iowa state
  2 30 university of science and technology.
  2 31    (3)  The director of the department of economic
  2 32 development.
  2 33    (4)  The director of the department of natural resources.
  2 34    b.  The following persons appointed by the secretary of
  2 35 agriculture, who shall serve as voting members:
  3  1    (1)  Two growers.
  3  2    (2)  Two winemakers.
  3  3    (3)  One retail seller.
  3  4    The secretary of agriculture shall appoint the voting
  3  5 members based on a list of nominations submitted by
  3  6 organizations representing growers, winemakers, and retail
  3  7 sellers as certified by the department according to
  3  8 requirements of the department.  The secretary of
  3  9 agriculture's appointees shall be confirmed by the senate,
  3 10 pursuant to section 2.32.
  3 11    2.  The voting members shall serve three-year terms
  3 12 beginning and ending as provided in section 69.19.  However,
  3 13 the secretary of agriculture shall appoint initial members to
  3 14 serve for less than three years to ensure members serve
  3 15 staggered terms.  A member is eligible for reappointment.  A
  3 16 vacancy on the commission shall be filled for the unexpired
  3 17 portion of the regular term in the same manner as regular
  3 18 appointments are made.
  3 19    3.  The commission shall elect a chairperson from among its
  3 20 voting members each year on a rotating basis as provided by
  3 21 the commission.  The commission shall meet on a regular basis
  3 22 and at the call of the chairperson or upon the written request
  3 23 to the chairperson of two or more voting members.
  3 24    4.  The voting members are entitled to receive actual and
  3 25 necessary expenses as provided in section 7E.6.
  3 26    5.  Three voting members constitute a quorum and the
  3 27 affirmative vote of a majority of the voting members present
  3 28 is necessary for any substantive action to be taken by the
  3 29 commission.  The majority shall not include any member who has
  3 30 a conflict of interest and a statement by a member that the
  3 31 member has a conflict of interest is conclusive for this
  3 32 purpose.  A vacancy in the membership does not impair the
  3 33 duties of the commission.
  3 34    Sec. 4.  NEW SECTION.  159B.3  ADMINISTRATION.
  3 35    1.  The department shall administer this chapter and shall
  4  1 do all of the following:
  4  2    a.  Establish and administer grape and wine development
  4  3 programs as provided in section 159B.4 and account for and
  4  4 expend moneys from the grape and wine development fund created
  4  5 pursuant to section 159B.5.
  4  6    b.  Report to the commission regarding the status of grape
  4  7 and wine development, including information regarding persons
  4  8 receiving assistance under grape and wine development programs
  4  9 as provided in section 159B.4 and the status of the grape and
  4 10 wine development fund as provided in section 159B.5.
  4 11    c.  Provide facilities for the commission to meet and carry
  4 12 out its powers and duties as provided in this section,
  4 13 including by staffing commission meetings.
  4 14    d.  Adopt all rules necessary to administer this chapter.
  4 15    2.  The grape and wine development commission shall oversee
  4 16 the administration of this chapter by the department and shall
  4 17 to do all of the following:
  4 18    a.  Monitor conditions, practices, policies, and programs
  4 19 affecting the grape and wine development in this state.
  4 20    b.  Establish mutually beneficial relationships with local,
  4 21 state, and federal governmental agencies and local, regional,
  4 22 and national associations representing growers and winemakers.
  4 23    c.  Contract with a viticulturist or enologist to provide
  4 24 technical assistance under grape and wine development programs
  4 25 as provided in section 159B.4.
  4 26    d.  Approve or disapprove applications for financial
  4 27 assistance under grape and wine development programs as
  4 28 provided in section 159B.4, after departmental review and
  4 29 recommendation and in accordance with rules adopted pursuant
  4 30 to this chapter.  The department shall adopt rules for
  4 31 awarding moneys to persons submitting proposals, including
  4 32 procedures for submitting applications and criteria for
  4 33 selecting proposals.
  4 34    e.  Approve rules proposed by the department for adoption
  4 35 pursuant to chapter 17A required for the administration of
  5  1 this chapter.
  5  2    Sec. 5.  NEW SECTION.  159B.4  GRAPE AND WINE DEVELOPMENT
  5  3 PROGRAMS.
  5  4    The department in cooperation with the commission shall
  5  5 establish grape and wine development programs, by assisting
  5  6 persons in establishing, improving, or expanding vineyards or
  5  7 winemaking operations, including wineries.  The programs may
  5  8 provide for all of the following:
  5  9    1.  Technical assistance which may include all the
  5 10 following:
  5 11    a.  Viticultural assistance in order to increase the size
  5 12 of vineyards, improve yield, and enhance the character,
  5 13 composition, and condition of grapes.  The department may
  5 14 provide technical assistance regarding the selection and
  5 15 management of vines suitable for regions of this state;
  5 16 cultivation and harvest practices; the implementation of
  5 17 practices designed to improve grape growing based on soil
  5 18 types, nutrients and minerals, space, climate, and drainage;
  5 19 the use of recommended varieties of native or hybrid
  5 20 cultivars; and disease, weed, and pest control, including the
  5 21 safe and effective application of pesticides or herbicides or
  5 22 the use of organic practices.
  5 23    b.  Enological assistance which may be based on enological
  5 24 study in order to produce, preserve, and transport
  5 25 commercially viable wines, including high-quality wines, wines
  5 26 adapted to particular regions of the state, and wines with
  5 27 distinctive tastes produced from native or hybrid cultivars.
  5 28 The technical assistance may include assistance regarding
  5 29 improving practices or constructing facilities designed to
  5 30 expand or improve processing, cellarage, or bottling.
  5 31    2.  Financial assistance which shall be in the form of a
  5 32 loan, forgivable loan, loan guarantee, cost share,
  5 33 indemnification of costs, or any combination of such financing
  5 34 as deemed appropriate by the commission.  The financial
  5 35 assistance may be awarded to persons beginning or engaged in
  6  1 grape growing or winemaking, based on a sound business plan
  6  2 that demonstrates the viability of the proposed operations.
  6  3    Sec. 6.  NEW SECTION.  159B.5  GRAPE AND WINE DEVELOPMENT
  6  4 FUND.
  6  5    1.  A grape and wine development fund is created in the
  6  6 state treasury under the control of the department.  The fund
  6  7 is composed of moneys appropriated by the general assembly and
  6  8 moneys available to and obtained or accepted by the department
  6  9 from the United States or private sources for placement in the
  6 10 fund.  The fund shall include moneys deposited in the fund
  6 11 derived from the wine gallonage tax as provided in section
  6 12 123.183.
  6 13    2.  Moneys in the fund are appropriated to the department
  6 14 exclusively to carry out grape and wine development programs
  6 15 as provided in section 159B.4, including contracting with a
  6 16 viticulturist or enologist to provide technical assistance and
  6 17 to provide financial assistance to growers and winemakers as
  6 18 provided in that section.
  6 19    3.  Section 8.33 shall not apply to moneys in the fund.
  6 20 Notwithstanding section 12C.7, moneys earned as income or
  6 21 interest from the fund shall remain in the fund until expended
  6 22 as provided in this section.  
  6 23                           EXPLANATION
  6 24    This bill creates a new Code chapter 159B, which provides
  6 25 for grapes and wine development.
  6 26    The bill establishes a grape and wine development
  6 27 commission established within the department of agriculture
  6 28 and land stewardship.  The commission is composed of three
  6 29 nonvoting, ex officio members, including the secretary of
  6 30 agriculture, the director of the department of economic
  6 31 development, and the dean of the college of agriculture of
  6 32 Iowa state university, or their designees.  The commission
  6 33 includes five voting members appointed by the secretary of
  6 34 agriculture based on a list of nominations submitted by
  6 35 organizations representing growers, winemakers, and retail
  7  1 sellers, with senate confirmation.
  7  2    The bill provides for the operation of the commission and
  7  3 the powers and duties of the commission and the department.
  7  4 The department is responsible for administering the provisions
  7  5 of the chapter, including establishing grape and wine
  7  6 development programs, reporting to the commission regarding
  7  7 the status of grape and wine production, providing facilities
  7  8 for the commission to meet and carry out its functions, and
  7  9 adopting rules as required.  The commission is responsible for
  7 10 monitoring the grape and wine industries and establishing
  7 11 relationships with governmental agencies and interested
  7 12 associations.  The commission may also contract with a
  7 13 viticulturist or enologist to provide technical assistance
  7 14 under grape and wine development programs as provided in the
  7 15 bill, and approve or disapprove applications for financial
  7 16 assistance under those programs.
  7 17    The bill requires that the department, in cooperation with
  7 18 the commission, establish grape and wine development programs,
  7 19 by assisting persons in establishing, improving, or expanding
  7 20 vineyards or winemaking operations, including wineries.  The
  7 21 programs may provide for technical assistance, including
  7 22 viticultural assistance in order to increase the size of
  7 23 vineyards, improve yield, and enhance the character,
  7 24 composition, and condition of grapes.  It also provides for
  7 25 enological assistance in order to produce, preserve, and
  7 26 transport commercially viable wines.  The bill also provides
  7 27 for financial assistance programs in order to assist persons
  7 28 beginning or engaged in grape growing or winemaking.
  7 29    The bill establishes a grape and wine production fund in
  7 30 the state treasury under the control of the department.  The
  7 31 fund includes moneys deposited in the fund derived from the
  7 32 wine gallonage tax as provided in Code section 123.183.  
  7 33 LSB 1248DP 79
  7 34 da/pj/5.1
     

Text: SSB01163                          Text: SSB01165
Text: SSB01100 - SSB01199               Text: SSB Index
Bills and Amendments: General Index     Bill History: General Index

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