Senate Study Bill 1163

                                       SENATE FILE       
                                       BY  (PROPOSED COMMITTEE ON
                                            AGRICULTURE BILL BY
                                            CHAIRPERSON BEHN)


    Passed Senate, Date               Passed House,  Date             
    Vote:  Ayes        Nays           Vote:  Ayes        Nays         
                 Approved                            

                                      A BILL FOR

  1 An Act relating to assistance services provided to the department
  2    of agriculture and land stewardship, including for the filing
  3    of documents and the payment of fees and civil penalties, and
  4    the authorization to assess additional charges.
  5 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
  6 TLSB 3064SC 80
  7 da/cf/24

PAG LIN

  1  1    Section 1.  Section 12C.1, subsection 2, paragraph e, Code
  1  2 2003, is amended to read as follows:
  1  3    e.  "Public funds" and "public deposits" mean the any of
  1  4 the following:
  1  5    (1)  The moneys of the state or a political subdivision or
  1  6 instrumentality of the state including a county, school
  1  7 corporation, special district, drainage district,
  1  8 unincorporated town or township, municipality, or municipal
  1  9 corporation or any agency, board, or commission of the state
  1 10 or a political subdivision;.  Moneys of the state include
  1 11 moneys which are transmitted to a depositary for purposes of
  1 12 completing an electronic financial transaction pursuant to
  1 13 section 159.43.
  1 14    (2)  The moneys of any court or public body noted in
  1 15 subsection 1;.
  1 16    (3)  The moneys of a legal or administrative entity created
  1 17 pursuant to chapter 28E;.
  1 18    (4)  The moneys of an electric power agency as defined in
  1 19 section 28F.2 or 476A.20; and federal.
  1 20    (5)  Federal and state grant moneys of a quasi=public state
  1 21 entity that are placed in a depository pursuant to this
  1 22 chapter.
  1 23                         SUBCHAPTER III
  1 24                       ASSISTANCE SERVICES
  1 25    Sec. 2.  NEW SECTION.  159.40  DEFINITIONS.
  1 26    As used in this subchapter, unless the context otherwise
  1 27 requires:
  1 28    1.  "Depositary" means a qualified person who executes a
  1 29 contract with the department pursuant to section 159.41 to
  1 30 provide assistance services as provided in this subchapter.
  1 31    2.  "Electronic funds transfer" means a remote electronic
  1 32 transmission used for ordering, instructing, or authorizing a
  1 33 financial institution to apply money to or credit the account
  1 34 of the payee and debit the account of the payer.  The remote
  1 35 electronic transmission may be initiated by telephone,
  2  1 computer, or similar device.
  2  2    3.  "Filing document" means any of the following:
  2  3    a.  An application for a license, permit, or certification,
  2  4 required to be submitted to the department as provided in this
  2  5 title.
  2  6    b.  A registration required to be submitted to the
  2  7 department as provided in this title.
  2  8    4.  "Filing document fee" means a fee or other charge
  2  9 established by statute or rule which is required to accompany
  2 10 a filing document submitted to the department as provided in
  2 11 this title.
  2 12    Sec. 3.  NEW SECTION.  159.41  ASSISTANCE SERVICES ==
  2 13 AUTHORITY TO CONTRACT WITH DEPOSITARY.
  2 14    Whenever practical, the department may execute a contract
  2 15 with a person qualified to provide assistance services under
  2 16 this subchapter, if the contract for the assistance services
  2 17 is cost=effective and the quality of the services ensures
  2 18 compliance with state and any applicable federal law.  A
  2 19 person executing a contract with the department for the
  2 20 purpose of providing the assistance services shall be deemed
  2 21 to be a depositary of the state and an agent of the department
  2 22 only for purposes expressly provided in this subchapter.  The
  2 23 department shall periodically review assistance services
  2 24 performed by a person under the contract to ensure that
  2 25 quality, cost=effective service is being provided.
  2 26    Sec. 4.  NEW SECTION.  159.42  ASSISTANCE SERVICES ==
  2 27 FILING DOCUMENTS.
  2 28    1.  A contract executed under this subchapter may require
  2 29 that a depositary provide for the receipt, acceptance, and
  2 30 storage of filing documents that are sent in an electronic
  2 31 format to the depositary by persons who would otherwise be
  2 32 required to submit filing documents to the department under
  2 33 other provisions of this title.  The contract shall be
  2 34 governed under the same provisions as provided in section
  2 35 14B.202.
  3  1    2.  a.  A depositary must send filing documents that it
  3  2 receives to the department for processing, including for the
  3  3 approval or disapproval of an application or the
  3  4 acknowledgement of a registration.  The receipt of the filing
  3  5 document by the depositary shall be deemed receipt of the
  3  6 filing document but not an approval of an application or
  3  7 acknowledgement of a registration by the department.
  3  8    b.  A depositary may send a person notice of the
  3  9 department's approval or disapproval of an application or
  3 10 acknowledgement of a registration.  The department and not a
  3 11 depositary shall be considered the lawful custodian of the
  3 12 department's filing documents which shall be public records as
  3 13 provided in chapter 22.
  3 14    3.  A filing document that is transmitted electronically to
  3 15 a depositary or from a depositary to another person is an
  3 16 electronic record for purposes of chapter 554D.  An
  3 17 application or registration required to be signed must be
  3 18 authenticated by an electronic signature as provided by the
  3 19 department in conformance with chapter 554D.
  3 20    Sec. 5.  NEW SECTION.  159.43  ASSISTANCE SERVICES ==
  3 21 COLLECTION OF MONEYS.
  3 22    1.  A contract executed under this subchapter may require
  3 23 that a depositary provide for the receipt, acceptance, and
  3 24 transmission of moneys owed to the department by a person in
  3 25 order to satisfy a liability arising from the operation of law
  3 26 which is limited to filing document fees and civil penalties.
  3 27 These moneys are public funds or public deposits as provided
  3 28 in chapter 12.  The depositary shall transfer the moneys to
  3 29 the department for deposit into the general fund of the state
  3 30 unless the disposition of the moneys is specifically provided
  3 31 for under other law.
  3 32    2.  A depositary may commit its assets to lines of credit
  3 33 pursuant to credit arrangements, including but not limited to
  3 34 agreements with credit and debit cardholders and with other
  3 35 credit or debit card issuers.  The depositary may accept forms
  4  1 of payment including credit cards, debit cards, or electronic
  4  2 funds transfer.
  4  3    3.  The moneys owed to the department shall not exceed the
  4  4 amount required to satisfy the liability arising from the
  4  5 operation of law.  However, the contract executed under this
  4  6 subchapter may provide for assistance service charges,
  4  7 including service delivery fees, credit card fees, debit card
  4  8 fees, and electronic funds transfer charges payable to the
  4  9 depositary or another party and not to the state.  An
  4 10 assistance service charge shall not exceed that permitted by
  4 11 statute.  The contract may also provide for the retention of
  4 12 interest earned on moneys under the control of the depositary.
  4 13 These moneys are not considered public funds or public
  4 14 deposits as provided in chapter 12.
  4 15    4.  The depositary, as required by the department for
  4 16 purposes of determining compliance, shall send information to
  4 17 the department including payment information for an identified
  4 18 filing document fee or the payment of a specific civil
  4 19 penalty.
  4 20    5.  Each calendar year, the auditor of state shall conduct
  4 21 an annual audit of the activities of the depositary.
  4 22    Sec. 6.  NEW SECTION.  159.44  FILING DOCUMENTS AND PAYMENT
  4 23 OF MONEYS TO DEPARTMENT.
  4 24    Nothing in this subchapter shall prevent a person from
  4 25 submitting a filing document or making a payment to the
  4 26 department as otherwise provided in this title.
  4 27    Sec. 7.  DIRECTIONS TO CODE EDITOR.
  4 28    1.  The Code editor shall transfer section 159.31 to new
  4 29 section 159.26.
  4 30    2.  The Code editor shall divide chapter 159 into
  4 31 subchapters and eliminate captions which do not include
  4 32 sections containing law text.  The Code editor shall
  4 33 consolidate or eliminate the repeal, reserve, and transfer
  4 34 entries in chapter 159 of the 2003 Iowa Code in order to
  4 35 enhance the readability of the chapter.  As part of
  5  1 consolidating or eliminating the entries, the Code editor
  5  2 shall provide directions to the reader that explain where
  5  3 historical information pertaining to the repeal, transfer, or
  5  4 reserving of those entries may be obtained.
  5  5                           EXPLANATION
  5  6    This bill amends Code chapter 159, which includes general
  5  7 administrative and regulatory authority of the department of
  5  8 agriculture and land stewardship.  Generally, provisions
  5  9 relating to the powers and duties of the department are
  5 10 contained in Title V of the Code.  Many Code chapters in this
  5 11 title provide for regulation, including the application for
  5 12 and the approval of licenses, permits, and certifications.
  5 13 Some Code chapters contain registration requirements.  Code
  5 14 chapters of note include those regulating the care of animals
  5 15 in commercial establishments; infectious and contagious
  5 16 diseases among animals; the disposal of dead animals;
  5 17 veterinary practice; the marking and branding of livestock;
  5 18 slaughterhouse operations; meat and poultry inspection;
  5 19 organic food production; dairy food production; the labeling
  5 20 and sale of regulation of commercial feed, agricultural seeds,
  5 21 fertilizers and soil conditioners, and agricultural lime; the
  5 22 regulation of grain dealers and grain warehouse operators; the
  5 23 regulation of pesticides and their use; and the inspection of
  5 24 weights and measures including gas pumps.
  5 25    The bill provides that the department may execute a
  5 26 contract with a person qualified to provide assistance
  5 27 services.  The person is referred to as a depositary.  The
  5 28 services are limited to the receipt, acceptance, and storage
  5 29 of applications for licenses, permits, and certifications and
  5 30 for registrations (referred to as filing documents).
  5 31 According to the bill, the depositary must send filing
  5 32 documents that it receives to the department for processing,
  5 33 including for the approval or disapproval of an application or
  5 34 the acknowledgement of a registration.
  5 35    The bill also provides that the department may execute a
  6  1 contract with a depositary to collect moneys owed to the
  6  2 department by a person in order to satisfy a liability arising
  6  3 from the operation of law which is limited to filing document
  6  4 fees and civil penalties.  The bill authorizes the depositary
  6  5 to commit its assets to lines of credit and may accept forms
  6  6 of payment, including credit cards, debit cards, or electronic
  6  7 funds transfer.  Moneys collected by the depositary must be
  6  8 transmitted to the department for deposit into the general
  6  9 fund of the state.  The bill provides for audits of the system
  6 10 by the auditor of state.
  6 11    The bill provides directions to the Code editor necessary
  6 12 to enhance the readability of the Code.
  6 13 LSB 3064SC 80
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