H.F. 2459 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. a. Notwithstanding subsection 1, upon a resolution 17 adopted by the board, the secretary shall call a special 18 referendum for voters to authorize increasing the assessment 19 rate imposed on sheep as provided in this section. 20 b. 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 3. a. The special referendum conducted pursuant to 26 subsection 2 shall allow a voter to cast a ballot for the 27 following two questions: 28 (1) For the first question, whether to authorize an increase 29 in the assessment rate to twenty-five cents imposed on each 30 head of sheep. 31 (2) For the second question, if the first question is 32 approved by a majority of voters, whether to also authorize the 33 board to increase that assessment rate by future resolution as 34 provided in this section. 35 -1- LSB 5539HZ (2) 84 da/rj 1/ 4

H.F. 2459 4. If a majority of voters approve the first question, 1 twenty-five cents shall be imposed on each head of sheep sold 2 by a producer as effectuated by the board pursuant to section 3 182.12. 4 5. If a majority of voters approve both the first and second 5 questions, all of the following apply: 6 a. Twenty-five cents shall be imposed on each head of sheep 7 sold by a producer as effectuated by the board pursuant to 8 section 182.12. 9 b. The board may adopt one or more resolutions to further 10 impose an increased assessment rate. The increased assessment 11 rate shall be imposed on each head of sheep sold by a producer 12 as effectuated by the board pursuant to section 182.12. The 13 board shall comply with all of the following: 14 (1) The board must wait three or more years from the 15 effective date of the previous action imposing an increase 16 in order to adopt a resolution. For the first increase, the 17 effective date is the date of the special referendum. For any 18 subsequent increase, the effective date is the date that the 19 board last adopted a resolution imposing an increased rate as 20 provided in this paragraph “b” . 21 (2) The board shall not adopt a resolution until it provides 22 notice to producers of the proposed increase and an opportunity 23 for producers to submit written or oral comments to the board 24 regarding the proposed increase. The board may provide notice 25 by publication in the same manner as provided in section 26 182.3, publication on its internet site, mail bearing a United 27 States postal service postmark, electronic transmission, or 28 hand-delivery. 29 (3) The increase in the assessment rate imposed by a 30 resolution adopted by the board must equal five cents. 31 However, the assessment rate imposed by a resolution of the 32 board shall not equal more than fifty cents. 33 6. a. If a majority of voters do not authorize increasing 34 the assessment rate pursuant to a special referendum conducted 35 -2- LSB 5539HZ (2) 84 da/rj 2/ 4

H.F. 2459 pursuant to this section, the assessment rate shall be the same 1 as provided in subsection 1. 2 b. Not more than one special referendum shall be conducted 3 pursuant to this section. 4 Sec. 4. Section 182.14, subsection 1, Code 2011, is amended 5 by striking the subsection. 6 Sec. 5. Section 182.14, subsection 2, unnumbered paragraph 7 1, Code 2011, is amended to read as follows: 8 The An assessment provided in this chapter shall be imposed 9 on the producer as follows: 10 Sec. 6. EFFECT OF ACT. The establishment of the Iowa 11 sheep and wool promotion board and the assessment on the sale 12 of sheep or wool, as established in a referendum conducted 13 pursuant to section 182.4, and in effect immediately prior 14 to the effective date of this Act, is not affected by the 15 enactment of section 182.13B, subsection 1, or the repeal of 16 section 182.14, subsection 1, as provided in this Act. 17 Sec. 7. EFFECTIVE UPON ENACTMENT. This Act, being deemed of 18 immediate importance, takes effect upon enactment. 19 EXPLANATION 20 Current law provides for an assessment (a so-called 21 checkoff) on the sale of sheep and wool to first purchasers. 22 The assessment is ultimately expended by the Iowa sheep and 23 wool promotion board for purposes of promoting the marketing 24 of sheep and wool and to provide for related education and 25 research programs. The board operates and the checkoff is 26 imposed pursuant to a referendum approved by sheep and wool 27 producers. 28 This bill authorizes the board to conduct a special 29 referendum which poses two questions: (1) whether to increase 30 the checkoff rate for each head of sheep from 10 cents to 25 31 cents, and (2) if producers approve such increase, whether 32 to authorize the board to increase the rate in the future 33 by board resolution. The bill requires that the special 34 referendum be conducted in the same manner as the referendum 35 -3- LSB 5539HZ (2) 84 da/rj 3/ 4

H.F. 2459 establishing the board and first imposing the assessment rate, 1 unless the board’s resolution provides otherwise. However, 2 the resolution cannot alter two provisions; only producers are 3 eligible to vote in an election and each producer is entitled 4 to one vote. The bill places a number of conditions upon 5 the board’s resolution to further increase the rate. First, 6 it must wait three or more years from the effective date of 7 the previous action imposing an increase in order to adopt 8 such a resolution. Second, it must provide notice to and an 9 opportunity for comment by producers. Third, the increased 10 rate must equal 5 cents. The board cannot increase the rate 11 to more than 50 cents per head of sheep. Finally, the board 12 cannot conduct more than one special referendum. 13 The bill provides that the result of moving and rewriting 14 a provision that imposes the current assessment rate does 15 not affect the prior establishment of the board or the prior 16 imposition of that rate as established by referendum. 17 The bill takes effect upon enactment. 18 -4- LSB 5539HZ (2) 84 da/rj 4/ 4