House File 2381 - Introduced HOUSE FILE 2381 BY COMMITTEE ON AGRICULTURE (SUCCESSOR TO HSB 618) A BILL FOR An Act relating to the assessment of moneys on sheep and wool 1 production, and including effective date provisions. 2 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 3 TLSB 5539HV (3) 84 da/rj

H.F. 2381 Section 1. Section 182.1, subsection 5, Code 2011, is 1 amended by striking the subsection. 2 Sec. 2. Section 182.1, Code 2011, is amended by adding the 3 following new subsection: 4 NEW SUBSECTION . 8A. “Secretary” means the secretary of 5 agriculture. 6 Sec. 3. NEW SECTION . 182.13B Assessment rate. 7 1. If a majority of voters at a referendum conducted 8 pursuant to section 182.4 approve the establishment of an 9 Iowa sheep and wool promotion board and the imposition of an 10 assessment, the assessment shall be imposed on wool and sheep 11 at the following rates: 12 a. For wool, two cents imposed on each pound of wool sold 13 by a producer. 14 b. For sheep, ten cents imposed on each head of sheep sold 15 by a producer. 16 2. Notwithstanding subsection 1, upon a resolution adopted 17 by the board, the secretary shall call a special referendum for 18 voters to authorize increasing the assessment rate imposed on 19 sheep as provided in this subsection and subsection 3. 20 a. The special referendum shall be conducted in the same 21 manner as a referendum conducted upon receipt of a petition 22 as provided in this chapter, unless otherwise provided in the 23 board’s resolution. Only producers are eligible to vote in an 24 election and each producer is entitled to one vote. 25 b. If a majority of voters authorize increasing the 26 assessment rate, the assessment rate shall be twenty-five cents 27 imposed on each head of sheep. If a majority of voters do not 28 authorize increasing the assessment rate, the assessment rate 29 shall be the same as provided in subsection 1. 30 3. If a majority of voters authorize increasing the 31 assessment rate imposed on sheep as provided in subsection 32 2, the assessment rate imposed on each head of sheep may be 33 increased pursuant to a resolution adopted by the board. The 34 board shall comply with all of the following: 35 -1- LSB 5539HV (3) 84 da/rj 1/ 3

H.F. 2381 a. The board must wait three or more years from the 1 effective date of the previous increase in order to adopt such 2 a resolution. For the first increase, the effective date is 3 the date that the voters authorized increasing the assessment 4 rate pursuant to subsection 1. For any subsequent increase, 5 the effective date is the date that the board last adopted 6 a resolution imposing an increased rate as provided in this 7 subsection. 8 b. The board shall not adopt a resolution until it provides 9 notice to producers of the proposed increase and an opportunity 10 for producers to submit written or oral comments to the board 11 regarding the proposed increase. The board may provide notice 12 by publication in the same manner as provided in section 13 182.3, publication on its internet site, mail bearing a United 14 States postal service postmark, electronic transmission, or 15 hand-delivery. 16 c. The increase in the assessment rate imposed by a 17 resolution of the board must equal five cents. However, the 18 assessment rate imposed by a resolution of the board shall not 19 equal more than fifty cents. 20 Sec. 4. Section 182.14, subsection 1, Code 2011, is amended 21 by striking the subsection. 22 Sec. 5. Section 182.14, subsection 2, unnumbered paragraph 23 1, Code 2011, is amended to read as follows: 24 The An assessment provided in this chapter shall be imposed 25 on the producer as follows: 26 Sec. 6. EFFECT OF ACT. The establishment of the Iowa 27 sheep and wool promotion board and the assessment on the sale 28 of sheep or wool, as established in a referendum conducted 29 pursuant to section 182.4, and in effect immediately prior 30 to the effective date of this Act, is not affected by the 31 enactment of section 182.13B, subsection 1, or the repeal of 32 section 182.14, subsection 1, as provided in this Act. 33 Sec. 7. EFFECTIVE UPON ENACTMENT. This Act, being deemed of 34 immediate importance, takes effect upon enactment. 35 -2- LSB 5539HV (3) 84 da/rj 2/ 3

H.F. 2381 EXPLANATION 1 Current law provides for an assessment (a so-called 2 checkoff) on the sale of sheep and wool to first purchasers. 3 The assessment is ultimately expended by the Iowa sheep and 4 wool promotion board for purposes of promoting the marketing 5 of sheep and wool and to provide for related education and 6 research programs. The board operates and the checkoff is 7 imposed pursuant to a referendum approved by sheep and wool 8 producers. 9 This bill authorizes the board to conduct a special 10 referendum to increase the checkoff rate for each head of 11 sheep from 10 cents to 25 cents, and to authorize the board 12 to increase the rate in the future by board resolution. The 13 bill requires that the special referendum be conducted in the 14 same manner as the referendum establishing the board and first 15 imposing the assessment rate, unless the board’s resolution 16 provides otherwise. However, the resolution cannot alter two 17 provisions; only producers are eligible to vote in an election 18 and each producer is entitled to one vote. The bill places a 19 number of conditions upon the board’s resolution to further 20 increase the rate. First, it must wait three or more years 21 from the effective date of the previous increase in order to 22 adopt such a resolution. Second, it must provide notice to and 23 an opportunity for comment by producers. Third, the increased 24 rate must equal 5 cents. Finally, the board cannot increase 25 the rate to more than 50 cents per head of sheep. 26 The bill provides that the result of moving and rewriting 27 a provision that imposes the current assessment rate does 28 not affect the prior establishment of the board or the prior 29 imposition of that rate as established by referendum. 30 The bill takes effect upon enactment. 31 -3- LSB 5539HV (3) 84 da/rj 3/ 3