House Study Bill 149 - Introduced HOUSE FILE _____ BY (PROPOSED COMMITTEE ON AGRICULTURE BILL BY CHAIRPERSON SWEENEY) A BILL FOR An Act relating to reimbursement for state audits of certain 1 commodity organizations, and including effective date 2 provisions. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 TLSB 2118YC (2) 84 da/nh

H.F. _____ Section 1. Section 182.18, subsection 1, Code 2011, is 1 amended to read as follows: 2 1. Moneys collected under this chapter are subject to audit 3 by the auditor of state and shall be used by the Iowa sheep and 4 wool promotion board first for the payment of collection and 5 refund expenses, second for payment of the costs and expenses 6 arising in connection with conducting referendums, and third 7 for the purposes identified in section 182.11 , and fourth for 8 the cost of audits for the auditor of state . Moneys of the 9 board remaining after a referendum is held at which a majority 10 of the voters favor termination of the board and the assessment 11 shall continue to be expended in accordance with this chapter 12 until exhausted. The auditor of state may seek reimbursement 13 for the cost of the audit. 14 Sec. 2. Section 184.14, subsection 2, Code 2011, is amended 15 to read as follows: 16 2. Moneys collected, deposited in the fund, and transferred 17 to the council as provided in this chapter are subject to 18 audit by the auditor of state. The auditor of state may 19 seek reimbursement for the cost of the audit. The moneys 20 transferred to the council shall be used by the council first 21 for the payment of collection expenses, second for payment of 22 the costs and expenses arising in connection with conducting 23 referendums, and third to perform the functions and carry out 24 the duties of the council as provided in this chapter , and 25 fourth for the cost of audits by the auditor of state . Moneys 26 remaining after the council is abolished and the imposition of 27 an assessment is terminated pursuant to a referendum conducted 28 pursuant to section 184.5 shall continue to be expended in 29 accordance with this chapter until exhausted. 30 Sec. 3. Section 184A.6, subsection 2, Code 2011, is amended 31 to read as follows: 32 2. The council shall expend moneys from the account first 33 for the payment of expenses for the collection of assessments, 34 second and then for the payment of expenses related to 35 -1- LSB 2118YC (2) 84 da/nh 1/ 3

H.F. _____ conducting a referendum as provided in section 184A.12 , 1 and third for the cost of audits by the auditor of state as 2 required in section 184A.9 . The council shall expend remaining 3 moneys for market development, producer education, and the 4 payment of refunds to producers as provided in this chapter . 5 Sec. 4. Section 184A.9, Code 2011, is amended to read as 6 follows: 7 184A.9 Audit. 8 Moneys required to be deposited in the turkey council 9 account as provided in section 184A.4 shall be subject to 10 audit by the auditor of state. The auditor of state may seek 11 reimbursement for the cost of the audit from moneys deposited 12 in the turkey council account. 13 Sec. 5. Section 185C.26, Code 2011, is amended to read as 14 follows: 15 185C.26 Deposit of moneys —— corn promotion fund. 16 A state assessment collected by the board from a sale of corn 17 shall be deposited in the office of the treasurer of state in 18 a special fund known as the corn promotion fund. The fund may 19 include any gifts, rents, royalties, interest, license fees, 20 or a federal or state grant received by the board. Moneys 21 collected, deposited in the fund, and transferred to the board 22 as provided in this chapter shall be subject to audit by the 23 auditor of state. The auditor of state may seek reimbursement 24 for the cost of the audit from moneys deposited in the fund as 25 provided in this chapter . The department of administrative 26 services shall transfer moneys from the fund to the board 27 for deposit into an account established by the board in a 28 qualified financial institution. The department shall transfer 29 the moneys as provided in a resolution adopted by the board. 30 However, the department is only required to transfer moneys 31 once during each day and only during hours when the offices of 32 the state are open. From moneys collected, the board shall 33 first pay all the direct and indirect costs incurred by the 34 secretary and the costs of referendums, elections, and other 35 -2- LSB 2118YC (2) 84 da/nh 2/ 3

H.F. _____ expenses incurred in the administration of this chapter , before 1 moneys may be expended for the purpose of carrying out the 2 purposes of this chapter as provided in section 185C.11 . 3 Sec. 6. EFFECTIVE UPON ENACTMENT. This Act, being deemed of 4 immediate importance, takes effect upon enactment. 5 EXPLANATION 6 This bill relates to four commodity organizations 7 representing producers of sheep (and wool), eggs, turkeys, 8 and corn. The marketing, research, and promotional purposes 9 of these organizations are financed by an excise tax or state 10 assessment (commonly referred to as a checkoff) imposed upon 11 the first purchasers of the commodities. Moneys derived from 12 each checkoff are controlled by the governing body of each 13 organization, including the Iowa sheep and wool promotion 14 board, the Iowa egg council, the Iowa turkey marketing council, 15 and the Iowa corn promotion board. In each case, the collected 16 moneys are subject to audit by the auditor of state. In 2010, 17 the general assembly enacted S.F. 2367 (2010 Iowa Acts, ch. 18 1189) which amended a number of sections referring to those 19 audits, by authorizing the auditor of state to be reimbursed 20 from the organizations for the cost of the audits. This 21 bill eliminates the changes made in S.F. 2367 and restores 22 the sections to the language as it existed prior to that 23 legislation. 24 The bill takes effect upon enactment. 25 -3- LSB 2118YC (2) 84 da/nh 3/ 3