S.F. _____ Section 1. Section 185C.1, Code 2013, is amended by adding 1 the following new subsection: 2 NEW SUBSECTION . 4A. “Director” means a district elected 3 director or a board elected director as provided in section 4 185C.6. 5 Sec. 2. Section 185C.1, subsection 5, Code 2013, is amended 6 to read as follows: 7 5. “District” means an official crop reporting district 8 formed by the United States department of agriculture for use 9 on January 1, 2013, and set out in the annual farm census 10 published in that year by the Iowa department of agriculture 11 and land stewardship. 12 Sec. 3. Section 185C.3, Code 2013, is amended to read as 13 follows: 14 185C.3 Establishment of corn promotion board. 15 If a majority of the producers voting in the referendum 16 election approve the passage of the promotional order, an Iowa 17 corn promotion board shall be established. The board shall 18 consist of one director elected from each district in the 19 state, except that a district producing more than an average 20 of one hundred million bushels of corn in the three previous 21 marketing years is entitled to two directors. 22 Sec. 4. Section 185C.6, Code 2013, is amended by striking 23 the section and inserting in lieu thereof the following: 24 185C.6 Number and election of directors. 25 The Iowa corn promotion board established pursuant to 26 section 185C.3 shall be composed of directors elected as 27 provided in this chapter. The directors shall include all of 28 the following: 29 1. Nine district elected directors. Each such director 30 shall be elected from a district as provided in section 185C.5, 31 this section, and sections 185C.7 and 185C.8. A candidate 32 receiving the highest number of votes in each district shall be 33 elected to represent that district. 34 2. Three board elected directors. Each such director shall 35 -1- LSB 1719SC (3) 85 da/sc 1/ 7

S.F. _____ be elected by the board. The candidate receiving the highest 1 number of votes by the board shall be elected to represent the 2 state on at-large basis. 3 Sec. 5. Section 185C.7, Code 2013, is amended to read as 4 follows: 5 185C.7 Terms of directors. 6 1. Director terms A director’s term of office shall be for 7 three years and no . A district elected director of the board 8 shall not serve for more than three complete consecutive terms. 9 A board elected director shall not serve for more than one 10 complete term of office. A district elected director who is 11 elected as board elected director shall not serve more than a 12 total of four terms of office, regardless of whether any of the 13 terms of office are complete or consecutive. 14 2. If the board is reconstituted pursuant to section 185C.8 , 15 the terms of the directors shall be controlled by this section . 16 However, the initial terms of the reconstituted board shall 17 be staggered. To the extent practicable, one-third of the 18 elected directors shall serve an initial term of one year, 19 one-third of the elected directors shall serve an initial term 20 of two years, and one-third of the elected directors shall 21 serve an initial term of three years. The initial terms of 22 board elected directors shall be determined by board members 23 directors drawing lots. The board elected under this paragraph 24 shall not contain two directors from the same district serving 25 the same term. 26 Sec. 6. Section 185C.8, Code 2013, is amended to read as 27 follows: 28 185C.8 Elections Administration of elections for directors . 29 1. The Iowa corn promotion board shall administer elections 30 for district elected directors of the board with the assistance 31 of the secretary. Prior to the expiration of a director’s 32 term of office, the board shall appoint a nominating committee 33 for the district represented by that director. The nominating 34 committee shall consist of five producers who are residents 35 -2- LSB 1719SC (3) 85 da/sc 2/ 7

S.F. _____ of the district from which a director must be elected. The 1 nominating committee shall nominate two resident producers as 2 candidates for each director position for which an election 3 is to be held. Additional candidates may be nominated by 4 a written petition of twenty-five producers. Procedures 5 governing the time and place of filing shall be adopted and 6 publicized by the board. 7 Following recommencement of the promotional order, 8 or termination of the promotional order’s suspension as 9 provided in section 185C.24 , the secretary shall order the 10 reconstitution of the board. An election of district elected 11 directors shall be held within thirty days from the date of the 12 order. The secretary shall call for, provide for notice of, 13 conduct, and certify the results of the election in a manner 14 consistent with section 185C.5 through 185C.7 . Directors shall 15 serve terms as provided in section 185C.7 . Rules or procedures 16 adopted by the board and in effect at the date of suspension 17 shall continue in effect upon reconstitution of the board. 18 The Iowa corn growers association may nominate two resident 19 producers as candidates for each director position. Additional 20 candidates may be nominated by a written petition of at least 21 twenty-five producers. 22 2. The Iowa corn promotion board shall administer elections 23 for board elected directors. Prior to the expiration of a 24 board elected director’s term of office, the board may appoint 25 a nominating committee. In order to be eligible for nomination 26 and election, a candidate must have previously served on the 27 board as an elected director. An officer of the board shall 28 certify the results of the election. 29 Sec. 7. Section 185C.10, subsection 3, Code 2013, is amended 30 by striking the subsection. 31 Sec. 8. Section 185C.14, subsection 3, Code 2013, is amended 32 to read as follows: 33 3. The board shall meet at least once every three months 34 times each year , and at such other times as deemed necessary 35 -3- LSB 1719SC (3) 85 da/sc 3/ 7

S.F. _____ by the board. 1 Sec. 9. Section 185C.21, subsection 2, Code 2013, is amended 2 to read as follows: 3 2. Upon request of the board, the secretary shall call 4 a special referendum for producers to vote on whether to 5 authorize an increase in the state assessment above one-quarter 6 of one cent per bushel, notwithstanding subsection 1 . The 7 special referendum shall be conducted as provided in this 8 chapter for referendum elections. However, the special 9 referendum shall not affect the existence or length of the 10 promotional order in effect. If a majority of the producers 11 voting in the special referendum approve the increase, the 12 board may increase the assessment to the amount approved in 13 the special referendum. However, a state assessment shall not 14 exceed one cent per bushel of corn marketed in this state. 15 Sec. 10. Section 185C.27, Code 2013, is amended to read as 16 follows: 17 185C.27 Refund of assessment. 18 A producer who has sold corn and had a state assessment 19 deducted from the sale price, by application in writing to 20 the board, may secure a refund in the amount deducted. The 21 refund shall be payable only when the application shall have 22 been made to the board within sixty days after the deduction. 23 Application forms shall be given by the board to each first 24 purchaser when requested and the first purchaser shall make the 25 applications available to any producer. Each application for 26 refund by a producer shall have attached to the application 27 proof of the assessment deducted. The proof of assessment 28 may be in the form of a duplicate or certified copy of the 29 purchase invoice by the first purchaser. The board shall have 30 thirty business days from the date the application for refund 31 is received to remit the refund to the producer. The board 32 may provide for refunds of a federal assessment as provided by 33 federal law. Unless inconsistent with federal law, refunds 34 shall be made under section 185C.26 . 35 -4- LSB 1719SC (3) 85 da/sc 4/ 7

S.F. _____ Sec. 11. IMPLEMENTATION. The Iowa corn promotion board 1 established pursuant to section 185C.3 shall implement this 2 Act. 3 1. During the implementation period all of the following 4 shall apply: 5 a. The board shall provide for staggered terms of directors 6 in the same manner as required for the initial terms of office 7 of a reconstituted board pursuant to section 185C.7. However, 8 the board is not required to draw lots as otherwise provided in 9 that section. 10 b. The board is not required to fill a vacancy for an 11 unexpired term as required in section 185C.9. 12 c. The board may reduce the number of years of a director’s 13 term in order to comply with this section. 14 2. The board shall complete implementation of this Act not 15 later than July 1, 2014. 16 Sec. 12. EFFECTIVE UPON ENACTMENT. This Act, being deemed 17 of immediate importance, takes effect upon enactment. 18 EXPLANATION 19 GENERAL. This bill amends Code chapter 185C which provides 20 for an assessment on the sale of each bushel of corn, a 21 self-imposed tax or “checkoff”, imposed on producers and 22 collected by first purchasers for remission to the Iowa corn 23 promotion board (board) for purposes of promoting the marketing 24 of corn and corn products and to provide for related education 25 and research programs and a financial assistance program (Code 26 sections 185C.11, 185C.11A, and 185C.21). The maximum rate of 27 assessment is one cent per bushel (Code section 185C.21). A 28 producer may claim a refund, and the board has 30 calendar days 29 in order to satisfy that claim (Code section 185C.27). 30 The board of directors are each elected for staggered 31 three-year terms (Code section 185C.7). The districts are 32 based on the official crop reporting districts established 33 by the United States department of agriculture (Code section 34 185C.1). Currently, there are nine districts. Each district 35 -5- LSB 1719SC (3) 85 da/sc 5/ 7

S.F. _____ producing more than an average of 100,000,000 bushels of corn 1 in the prior marketing year is entitled to elect two directors 2 (Code section 185C.3). A director cannot serve for more than 3 three complete consecutive terms (Code section 185C.7). The 4 board must meet once every three months (Code section 185C.14). 5 Currently, 17 directors serve on the board. In addition, 6 there are four ex officio, nonvoting members, including 7 the secretary of agriculture, the dean of the college of 8 agriculture and life sciences of Iowa state university 9 of science and technology, the director of the economic 10 development authority, and two representatives of first 11 purchaser organizations (Code section 185C.10). 12 BILL —— ORGANIZATION OF DISTRICTS. The bill provides that 13 the nine districts are to be organized based on the crop 14 reporting districts formed by the United States department of 15 agriculture for use on January 1, 2013. 16 BILL —— CHANGE IN BOARD GOVERNANCE. The bill provides that 17 12 directors are to be elected to the board. Each of nine 18 districts are to be represented by one director. In addition 19 three directors are to be elected by the board to serve at 20 large. A board elected director must have served as a district 21 elected director. A board director so elected cannot serve 22 more than a total of four terms in office regardless of whether 23 any of the terms are complete or consecutive. 24 The bill removes the director of the economic development 25 authority as an ex officio member. 26 BILL —— MEETING TIMES. The bill provides that the board 27 must meet at least three times a year rather than every three 28 months. 29 BILL —— ASSESSMENTS. The bill eliminates the maximum one 30 cent per bushel assessment rate. Any increase in the current 31 assessment rate would have to still be accomplished by a 32 special referendum of producers. The bill provides that the 33 board now has 30 business days in order to satisfy a producer’s 34 request for a refund. 35 -6- LSB 1719SC (3) 85 da/sc 6/ 7

S.F. _____ BILL —— IMPLEMENTATION. The board is responsible for 1 implementing the provisions of the bill, including by providing 2 for staggered terms of its directors notwithstanding any 3 applicable procedures in the Code chapter to the contrary. The 4 board must complete its implementation by July 1, 2014. 5 BILL —— EFFECTIVE DATE. The bill takes effect upon 6 enactment. 7 -7- LSB 1719SC (3) 85 da/sc 7/ 7