HOUSE FILE _____

BY  (PROPOSED COMMITTEE ON AGRICULTURE BILL BY CHAIRPERSON SWEENEY)

A BILL FOR

An Act relating to reimbursement for state audits of certain commodity organizations, and including effective date provisions.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

   Section 1.  Section 182.18, subsection 1, Code 2011, is amended to read as follows:
   1.  Moneys collected under this chapter are subject to audit by the auditor of state and shall be used by the Iowa sheep and wool promotion board first for the payment of collection and refund expenses, second for payment of the costs and expenses arising in connection with conducting referendums, and third for the purposes identified in section 182.11, and fourth for the cost of audits for the auditor of state. Moneys of the board remaining after a referendum is held at which a majority of the voters favor termination of the board and the assessment shall continue to be expended in accordance with this chapter until exhausted. The auditor of state may seek reimbursement for the cost of the audit.
   Sec. 2.  Section 184.14, subsection 2, Code 2011, is amended to read as follows:
   2.  Moneys collected, deposited in the fund, and transferred to the council as provided in this chapter are subject to audit by the auditor of state.The auditor of state may seek reimbursement for the cost of the audit. The moneys transferred to the council shall be used by the council first for the payment of collection expenses, second for payment of the costs and expenses arising in connection with conducting referendums, and third to perform the functions and carry out the duties of the council as provided in this chapter, and fourth for the cost of audits by the auditor of state. Moneys remaining after the council is abolished and the imposition of an assessment is terminated pursuant to a referendum conducted pursuant to section 184.5 shall continue to be expended in accordance with this chapter until exhausted.
   Sec. 3.  Section 184A.6, subsection 2, Code 2011, is amended to read as follows:
   2.  The council shall expend moneys from the account first for the payment of expenses for the collection of assessments, second and then for the payment of expenses related to conducting a referendum as provided in section 184A.12, and third for the cost of audits by the auditor of state as required in section 184A.9. The council shall expend remaining moneys for market development, producer education, and the payment of refunds to producers as provided in this chapter.
   Sec. 4.  Section 184A.9, Code 2011, is amended to read as follows:
   184A.9  Audit.
   Moneys required to be deposited in the turkey council account as provided in section 184A.4 shall be subject to audit by the auditor of state. The auditor of state may seek reimbursement for the cost of the audit from moneys deposited in the turkey council account.
   Sec. 5.  Section 185C.26, Code 2011, is amended to read as follows:
   185C.26  Deposit of moneys —— corn promotion fund.
   A state assessment collected by the board from a sale of corn shall be deposited in the office of the treasurer of state in a special fund known as the corn promotion fund. The fund may include any gifts, rents, royalties, interest, license fees, or a federal or state grant received by the board. Moneys collected, deposited in the fund, and transferred to the board as provided in this chapter shall be subject to audit by the auditor of state. The auditor of state may seek reimbursement for the cost of the audit from moneys deposited in the fund as provided in this chapter. The department of administrative services shall transfer moneys from the fund to the board for deposit into an account established by the board in a qualified financial institution. The department shall transfer the moneys as provided in a resolution adopted by the board. However, the department is only required to transfer moneys once during each day and only during hours when the offices of the state are open. From moneys collected, the board shall first pay all the direct and indirect costs incurred by the secretary and the costs of referendums, elections, and other expenses incurred in the administration of this chapter, before moneys may be expended for the purpose of carrying out the purposes of this chapter as provided in section 185C.11.
   Sec. 6.  EFFECTIVE UPON ENACTMENT.  This Act, being deemed of immediate importance, takes effect upon enactment.
EXPLANATION
   This bill relates to four commodity organizations representing producers of sheep (and wool), eggs, turkeys, and corn. The marketing, research, and promotional purposes of these organizations are financed by an excise tax or state assessment (commonly referred to as a checkoff) imposed upon the first purchasers of the commodities. Moneys derived from each checkoff are controlled by the governing body of each organization, including the Iowa sheep and wool promotion board, the Iowa egg council, the Iowa turkey marketing council, and the Iowa corn promotion board. In each case, the collected moneys are subject to audit by the auditor of state. In 2010, the general assembly enacted S.F. 2367 (2010 Iowa Acts, ch. 1189) which amended a number of sections referring to those audits, by authorizing the auditor of state to be reimbursed from the organizations for the cost of the audits. This bill eliminates the changes made in S.F. 2367 and restores the sections to the language as it existed prior to that legislation.
   The bill takes effect upon enactment.