House File 2465 - Introduced HOUSE FILE 2465 BY ISENHART and ANDERSON A BILL FOR An Act providing for a state assessment for clean water 1 imposed on agricultural commodities, including establishing 2 procedures for referendums to establish, continue, or 3 terminate the state assessment, the transfer of moneys to 4 the department of agriculture and land stewardship, and the 5 appropriation of moneys. 6 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 7 TLSB 5561YH (8) 86 da/rj
H.F. 2465 DIVISION I 1 IOWA DAIRY INDUSTRY COMMISSION AND 2 IOWA STATE DAIRY ASSOCIATION 3 Section 1. Section 179.1, Code 2016, is amended by adding 4 the following new subsections: 5 NEW SUBSECTION . 01. “Assessment” means an excise tax on the 6 sale of milk which may include a state assessment for direct 7 use and a state assessment for water. 8 NEW SUBSECTION . 2A. “Federal Act” means the Dairy Product 9 Stabilization Act of 1983, 7 U.S.C. §4501 et seq. 10 NEW SUBSECTION . 3A. “National assessment” means an excise 11 tax on the sale of milk imposed pursuant to the federal Act. 12 NEW SUBSECTION . 10. “Secretary” means the secretary of 13 agriculture. 14 Sec. 2. Section 179.1, subsection 2, Code 2016, is amended 15 to read as follows: 16 2. The term “commission” shall mean “Commission” means the 17 Iowa dairy industry commission created in section 179.2 . 18 Sec. 3. Section 179.2, subsections 4, 5, 6, and 7, Code 19 2016, are amended to read as follows: 20 4. a. When a national promotional order is established by 21 the United States department of agriculture pursuant to the 22 Dairy Product Stabilization Act of 1983 federal Act , collection 23 of the excise tax state assessment for direct use described in 24 section 179.5 shall be suspended for the period in which the 25 national order is in effect. The commission shall continue to 26 operate thereafter for only the period of time necessary to pay 27 refunds and disburse the funds moneys remaining in the dairy 28 industry fund for the purposes enumerated in administering 29 this chapter . Upon completion of these acts, the existence of 30 the Iowa dairy industry commission shall be suspended. The 31 secretary of agriculture shall certify the suspension of the 32 commission as of a date certain to the Iowa dairy industry 33 commission and the Iowa state dairy association. When the 34 existence of the commission is suspended, the terms of office 35 -1- LSB 5561YH (8) 86 da/rj 1/ 114
H.F. 2465 being served by individual commissioners shall terminate. 1 b. The establishment of a national promotional order shall 2 not affect the imposition of a state assessment for clean water 3 established pursuant to section 179.13A. 4 5. When the national promotional order expires, the period 5 of suspension of the excise tax state assessment for direct use 6 established in section 179.5 shall terminate and the secretary 7 of agriculture shall take the steps necessary to collect that 8 excise tax state assessment and otherwise fulfill the duties of 9 the commission, except that of expending funds moneys collected 10 under the excise tax that state assessment , until those 11 duties can be resumed by the reactivated commission. When the 12 national promotional order expires, the period of suspension of 13 the commission shall terminate. The secretary of agriculture 14 shall call the first meeting of the reactivated commission. 15 Upon reactivation, the commission shall reimburse the secretary 16 of agriculture for expenses incurred in carrying out the duties 17 provided in this subsection . 18 6. When the national dairy promotion program expires and 19 the suspension of the Iowa dairy industry commission terminates 20 pursuant to subsection 5 , all first purchasers shall, in a 21 manner designed to reflect their proportionate contributions 22 to the national dairy promotion program in its most recently 23 completed fiscal year, nominate two resident producers for each 24 of the sixteen offices of the commission. The secretary of 25 agriculture shall then appoint one nominee from each set of 26 two nominees as commissioners of the reactivated Iowa dairy 27 industry commission. The secretary of agriculture shall 28 stagger the terms of the reactivated commission resulting in 29 as nearly as possible one third of the commissioners serving 30 for one year, one third of the commissioners serving for two 31 years, and one third of the commissioners serving for three 32 years. After the initial staggering of terms by the secretary, 33 commissioners shall be appointed to three-year terms. 34 7. The establishment or expiration of a national 35 -2- LSB 5561YH (8) 86 da/rj 2/ 114
H.F. 2465 promotional order shall not affect the imposition of a state 1 assessment for clean water established pursuant to section 2 179.13A. 3 7. 8. After the reactivated commission has been formed, 4 nominations for commissioners shall be made by first 5 purchasers in a manner designed to reflect their proportionate 6 contributions to the Iowa dairy industry commission in its most 7 recently completed fiscal year. 8 Sec. 4. Section 179.3, Code 2016, is amended by adding the 9 following new subsection: 10 NEW SUBSECTION . 10. To cooperate with the division of soil 11 conservation and water quality of the department of agriculture 12 and land stewardship in transferring moneys collected from 13 the state assessment for clean water to the clean water fund 14 created in section 466B.51. 15 Sec. 5. Section 179.4, Code 2016, is amended to read as 16 follows: 17 179.4 Expenditure of funds Use of moneys . 18 Funds collected through Moneys collected by the commission 19 from the excise tax are to state assessment for direct use 20 imposed pursuant to section 179.5 shall be used for purposes 21 of advertising and promotion, product, process, and nutrition, 22 dietetics, and physiology research, nutrition education, public 23 relations, research and development, and for other activities 24 that contribute to producer efficiency and productivity. 25 In addition, the commission shall use these funds moneys 26 to maintain existing markets, to make contributions to 27 organizations working toward the purposes of this section , 28 and to assist in the development of new or enlarged markets 29 for milk, both domestic and foreign. The primary purpose for 30 use of these funds moneys is to increase consumption of milk. 31 The commission may contract for advertising, publicity, sales 32 promotion, research, and educational services the committee 33 commission deems appropriate to further the objectives of this 34 section . 35 -3- LSB 5561YH (8) 86 da/rj 3/ 114
H.F. 2465 Sec. 6. Section 179.5, Code 2016, is amended to read as 1 follows: 2 179.5 Excise tax —— administration of moneys —— 3 appropriation. 4 1. a. There is levied and imposed an excise tax a state 5 assessment for direct use on all producers within the state 6 at a rate of three-fourths of one percent of the gross value 7 of milk produced in the state and which may be continued by 8 special referendum as provided in section 179.13A . 9 b. There is imposed a state assessment for clean water on 10 all producers within the state at a rate established by the 11 commission not to exceed the rate of the state assessment for 12 direct use described in paragraph “a” , if the state assessment 13 for clean water is established or continued pursuant to section 14 179.13A. 15 2. All taxes levied and The state assessment for direct use 16 and the state assessment for clean water imposed under this 17 chapter shall be deducted from the sales price received by the 18 producer and shall be collected by the first purchaser, except 19 as follows: 20 a. If the producer produces milk from cows and sells the 21 milk directly to the consumer, the taxes each state assessment 22 shall be remitted by that producer. 23 b. If the producer sells milk to a first purchaser outside 24 the state, the taxes are each state assessment is due and 25 payable by that producer before the shipment is made, except 26 that the commission may make agreements with extra state 27 purchasers for the keeping of records and the collection of the 28 taxes each state assessment as necessary to secure the payment 29 of the taxes each state assessment within the time fixed by 30 this chapter . 31 3. All taxes levied and The state assessment for direct use 32 and the state assessment for clean water if established and 33 imposed under this chapter , and any other contributions made to 34 the dairy industry commission , shall be paid to and collected 35 -4- LSB 5561YH (8) 86 da/rj 4/ 114
H.F. 2465 by the commission within thirty days after the end of the month 1 during which the milk was marketed. 2 4. The commission shall remit moneys collected from 3 the taxes state assessment for direct use and any other 4 contributions obtained by the commission to the treasurer of 5 the state each quarter, and at the same time shall render to 6 the director of the department of administrative services an 7 itemized and verified report showing the source from which 8 the taxes moneys collected from the state assessment for 9 direct use and voluntary contributions were obtained. All 10 taxes moneys collected from the state assessment for direct 11 use and voluntary contributions received, collected, and 12 remitted by the commission shall be placed in a special fund 13 by the treasurer of state and the director of the department 14 of administrative services, to be known as the “dairy industry 15 fund” to be used by the Iowa dairy industry commission for 16 the purposes set out in this chapter and to administer and 17 enforce the laws relative to this chapter . The department of 18 administrative services shall transfer moneys from the fund 19 to the commission for deposit into an account established 20 by the commission in a qualified financial institution. 21 The department shall transfer the moneys as provided in a 22 resolution adopted by the commission. However, the department 23 is only required to transfer moneys once during each day and 24 only during hours when the offices of the state are open. 25 Moneys deposited in the fund and transferred to the commission 26 as provided in this section are appropriated and shall be used 27 for the purpose of carrying out the provisions of this chapter . 28 5. The commission may deposit moneys collected from the 29 state assessment for clean water in a qualified financial 30 institution until transferred to the clean water fund 31 created in section 466B.51. During the period when a 32 national promotional order is in effect, the Iowa state dairy 33 association shall deposit the moneys collected from that 34 state assessment for clean water in a qualified financial 35 -5- LSB 5561YH (8) 86 da/rj 5/ 114
H.F. 2465 institution until transferred to the clean water fund. If the 1 state assessment for clean water is terminated as provided in 2 section 179.13A, the remaining moneys collected from that state 3 assessment shall be immediately transferred to the clean water 4 fund. 5 6. The commission may require that the invoice also show the 6 total amount of any state assessment for direct use deducted 7 from the sales price. If a national assessment is being 8 collected, the Iowa state dairy association may require that 9 the invoice for the national assessment also show the total 10 amount of any national assessment, if permitted by federal law. 11 If a state assessment for clean water is collected, the first 12 purchaser shall furnish the producer at the time of payment an 13 invoice showing the total amount of the state assessment for 14 clean water deducted from the sales price. 15 4. 7. a. A person from whom the excise tax provided in 16 this chapter a state assessment for direct use is collected 17 may, by application filed with the commission within thirty 18 days after the collection of the tax state assessment , have the 19 tax state assessment refunded to that person by the commission. 20 b. If a state assessment for direct use is imposed, a person 21 from whom a state assessment for clean water is collected 22 may file an application for a refund with the commission. 23 The application for a refund shall allow the person to elect 24 whether the refund is for the state assessment for direct 25 use or the state assessment for clean water or both. The 26 commission shall not approve an application unless the 27 application indicates the election. The commission shall 28 forward an approved application for a refund of the state 29 assessment to the division of soil conservation and water 30 quality for payment. 31 c. If a national assessment is imposed and a refund of the 32 national assessment is authorized, a person from whom a state 33 assessment for clean water is collected may file an application 34 for a refund with the Iowa state dairy association. The 35 -6- LSB 5561YH (8) 86 da/rj 6/ 114
H.F. 2465 application shall to the extent allowed by federal law allow 1 the person to elect whether the refund is for the national 2 assessment or the state assessment for clean water or both. 3 The association shall forward the approved application for a 4 refund of the state assessment for clean water to the division 5 of soil conservation and water quality for payment. 6 Sec. 7. Section 179.6, Code 2016, is amended to read as 7 follows: 8 179.6 Records of producers, first purchasers. 9 Every producer shipping milk to a first purchaser outside of 10 Iowa who is not by agreement with the commission collecting the 11 tax state assessment for direct use or the state assessment for 12 clean water imposed by this chapter , and every first purchaser 13 within the state, and every producer distributing milk directly 14 to the consumer, shall keep a complete and accurate record of 15 all milk produced or purchased by the person during the period 16 for which an excise tax levy a state assessment is imposed 17 under this chapter . The records shall be in the form and 18 contain the information prescribed by the commission, shall be 19 preserved by the person charged with their making for a period 20 of two years, and shall be offered or submitted for inspection 21 at any time upon written or oral request by the commission or 22 its duly authorized agent or employee. 23 Sec. 8. Section 179.8, Code 2016, is amended to read as 24 follows: 25 179.8 Payment of expenses —— limitation. 26 1. No part of the expense incurred by the commission 27 shall be paid out of moneys in the state treasury except 28 moneys transferred to the commission from the dairy industry 29 fund. Moneys transferred from the fund to the commission, as 30 provided in section 179.5 , shall be used for the payment of 31 all salaries, and other expenses necessary, to carry out the 32 provisions of this chapter . However, in no event shall the 33 total expenses exceed the total taxes amount collected from the 34 state assessment for direct use collected and transferred from 35 -7- LSB 5561YH (8) 86 da/rj 7/ 114
H.F. 2465 the fund to the commission. 1 2. No more than five percent of the excise tax collected 2 moneys collected from the state assessment for direct use and 3 received by the commission pursuant to section 179.5 shall be 4 utilized for administrative expenses of the commission. 5 Sec. 9. Section 179.9, Code 2016, is amended to read as 6 follows: 7 179.9 Investigations by commission. 8 The commission shall have the power to cause its authorized 9 agents to enter upon the premises of any person charged by this 10 chapter or by agreement with the commission with the collection 11 of the excise tax a state assessment for direct use or a state 12 assessment for clean water imposed by this chapter , and to 13 cause to be examined by any such agent any books, records, 14 documents, or other instruments bearing upon the amount of 15 moneys from such tax state assessment collected or to be 16 collected by such person; provided that the commission has 17 reasonable ground to believe that all moneys from the tax state 18 assessment herein levied has imposed have not been collected, 19 or if it has they have not been fully accounted for as herein 20 provided. 21 Sec. 10. Section 179.10, Code 2016, is amended to read as 22 follows: 23 179.10 Report. 24 The commission shall each year prepare and submit a report 25 summarizing the activities of the commission under this chapter 26 to the auditor of state and the secretary of agriculture . The 27 report shall show all income, expenses, and other relevant 28 information concerning fees the state assessment for direct 29 use collected and expended under this chapter . The report 30 shall also show the collection and transfer of moneys received 31 from any state assessment for clean water imposed under this 32 chapter. 33 Sec. 11. Section 179.13, Code 2016, is amended to read as 34 follows: 35 -8- LSB 5561YH (8) 86 da/rj 8/ 114
H.F. 2465 179.13 Referendum Initial referendum . 1 1. a. At a time designated by the commission within 2 eighteen months after termination of the national promotional 3 order made pursuant to the Dairy Product Stabilization 4 federal Act of 1983 , the commission shall conduct a an initial 5 referendum under administrative procedures prescribed by the 6 department. 7 b. Upon signing a statement certifying to the department 8 that the person is a bona fide producer as defined in this 9 chapter , each producer is entitled to one vote in each initial 10 referendum. When the secretary is required to determine the 11 approval or disapproval of producers under this section , the 12 secretary shall consider the approval or disapproval of a 13 cooperative association of producers, engaged in a bona fide 14 manner in marketing milk, as the approval or disapproval of the 15 producers who are members of or contract with the cooperative 16 association of producers. If a cooperative association 17 elects to vote on behalf of its members, the cooperative 18 association shall provide each producer on whose behalf the 19 cooperative association is expressing approval or disapproval 20 with a description of the question presented in the initial 21 referendum together with a statement of the manner in which 22 the cooperative association intends to cast its vote on behalf 23 of the membership. The information shall inform the producer 24 of procedures to follow to cast an individual ballot if the 25 producer chooses to do so within the period of time established 26 by the secretary for casting ballots. The notification shall 27 be made at least thirty days prior to the initial referendum 28 and shall include an official ballot. The ballots shall be 29 tabulated by the secretary and the vote of the cooperative 30 association shall be adjusted to reflect the individual votes. 31 c. The department shall count and tabulate the ballots 32 filed during the initial referendum within thirty days of the 33 close of the initial referendum. If from the tabulation the 34 department determines that a majority of the total number of 35 -9- LSB 5561YH (8) 86 da/rj 9/ 114
H.F. 2465 producers voting in the initial referendum favors the proposal, 1 the excise tax state assessment for direct use provided for in 2 this chapter shall be continued. The ballots cast pursuant 3 to this section constitute complete and conclusive evidence 4 for use in determinations made by the department under this 5 chapter . 6 2. The secretary may conduct a special referendum at any 7 time after the Iowa dairy industry commission is reactivated, 8 and shall hold a conduct a special referendum on request upon 9 receiving a petition of a representative group comprising ten 10 percent or more of the number of producers eligible to vote, 11 to determine whether the producers favor the termination or 12 suspension or termination of the excise tax state assessment 13 for direct use . The secretary shall suspend or terminate 14 collection of the excise tax within state assessment for direct 15 use not later than six months after the secretary determines 16 that suspension or termination of the excise tax state 17 assessment is favored by a majority of the producers voting 18 in the special referendum, and shall suspend or terminate the 19 excise tax state assessment in an orderly manner as soon as 20 practicable after the determination. 21 Sec. 12. NEW SECTION . 179.13A Referendums and special 22 questions —— establishment, increase, or termination of a state 23 assessment. 24 1. a. If a state assessment for direct use is established, 25 and upon receipt of a petition of producers that otherwise 26 complies with requirements to conduct an initial referendum 27 under section 179.13, subsection 1, the secretary shall conduct 28 a special referendum to determine whether to establish a state 29 assessment for clean water. 30 b. Upon receipt of a petition of producers that otherwise 31 complies with requirements to conduct an initial referendum 32 under section 179.13, the secretary shall include as part of 33 the initial referendum conducted pursuant to section 179.13, 34 subsection 1, a separate special question whether to establish 35 -10- LSB 5561YH (8) 86 da/rj 10/ 114
H.F. 2465 a state assessment for clean water, if the secretary determines 1 the inclusion of the special question is cost-effective or the 2 petition demands inclusion. 3 c. The secretary shall conduct the special referendum under 4 this subsection or include the special question as part of an 5 initial or special referendum conducted under section 179.13, 6 subsection 1, in consultation with the commission and which 7 may be based on the same procedures for conducting an initial 8 referendum under section 179.13. 9 d. If the secretary determines that the establishment of 10 a state assessment for clean water is favored by a majority 11 of the producers voting in a special referendum under this 12 subsection or in an initial referendum conducted under section 13 179.13, subsection 1, that includes a special question as 14 provided in paragraph “b” , the state assessment shall commence 15 on a date determined by the secretary after consultation with 16 the commission but not later than six months after the date 17 that the special or initial referendum was conducted. 18 2. a. If a national assessment is being collected, and upon 19 receipt of a petition of producers that otherwise complies with 20 requirements to conduct an initial referendum under section 21 179.13, subsection 1, the secretary shall conduct a special 22 referendum to determine whether to establish a state assessment 23 for clean water. 24 b. Upon receipt of a petition of producers that otherwise 25 complies with requirements to conduct an initial referendum 26 under section 179.13, subsection 1, the secretary shall include 27 as part of the referendum to establish a national assessment, 28 a separate special question whether to establish a state 29 assessment for clean water, if the secretary determines the 30 inclusion of the special question complies with federal law and 31 either is cost-effective or the petition demands inclusion. 32 c. The secretary shall conduct the special referendum under 33 this subsection or include the special question as part of a 34 referendum to establish a national referendum in consultation 35 -11- LSB 5561YH (8) 86 da/rj 11/ 114
H.F. 2465 with the Iowa state dairy association and which may be based on 1 the same procedures for conducting an initial referendum under 2 section 179.13, subsection 1, or a referendum to establish a 3 national assessment. 4 d. If the secretary determines that the establishment of a 5 state assessment for clean water is favored by a majority of 6 the producers voting in a special referendum conducted under 7 paragraph “a” or a referendum to establish a national assessment 8 that includes a special question as provided in paragraph “b” , 9 the state assessment shall commence on a date determined by 10 the secretary after consultation with the Iowa state dairy 11 association but not later than six months after the date that 12 the special referendum or referendum establishing a national 13 assessment was conducted. 14 3. a. If the rate of the national assessment has been 15 increased, and upon receipt of a petition of producers that 16 otherwise complies with requirements to conduct an initial 17 referendum under section 179.13, subsection 1, the secretary 18 shall conduct a special referendum to determine whether to 19 increase the rate of the state assessment for clean water to 20 a rate established by the Iowa state dairy association not to 21 exceed the rate of the national assessment. 22 b. Upon receipt of a petition of producers that otherwise 23 complies with requirements to conduct an initial referendum 24 under section 179.13, subsection 1, the secretary shall include 25 as part of a referendum to increase the rate of the national 26 assessment, a separate special question whether to increase 27 the rate of the state assessment for clean water at a rate 28 established by the Iowa state dairy association not to exceed 29 the increase in the national assessment, if the secretary 30 determines the inclusion of the special question complies 31 with federal law and is either cost-effective or the petition 32 demands inclusion. 33 c. The secretary shall conduct the special referendum under 34 this subsection, or include the special question as part of a 35 -12- LSB 5561YH (8) 86 da/rj 12/ 114
H.F. 2465 referendum to increase the national assessment, in consultation 1 with the Iowa state dairy association and which may be based on 2 the same procedures for conducting an initial referendum under 3 section 179.13, subsection 1, or a referendum to increase the 4 rate of the national assessment. 5 d. If the national assessment is increased, and the 6 secretary determines that an increase in the state assessment 7 for clean water is favored by a majority of the producers 8 voting in a special referendum or referendum to increase 9 the rate of the national assessment, the rate of the state 10 assessment shall be increased on a date determined by the 11 secretary after consultation with the Iowa state dairy 12 association but not later than six months after the date that 13 the special referendum or referendum establishing a national 14 assessment was conducted. If a special referendum or special 15 question to increase the rate of the state assessment for clean 16 water does not pass, the result of the vote shall not affect 17 the existence or length of the period when the state assessment 18 is in effect. 19 4. a. If a state assessment for direct use is imposed, 20 and upon receipt of a petition of producers that otherwise 21 complies with requirements to conduct a special referendum 22 under section 179.13, subsection 2, the secretary shall conduct 23 a special referendum to determine whether to terminate the 24 state assessment for clean water. 25 b. Upon receipt of a petition of producers that otherwise 26 complies with requirements to conduct a special referendum 27 under section 179.13, subsection 2, the secretary shall include 28 as part of a special referendum to suspend or terminate the 29 state assessment for direct use conducted pursuant to section 30 179.13, subsection 2, a separate special question whether 31 to terminate the state assessment for clean water, if the 32 secretary determines the inclusion of the special question is 33 cost-effective or the petition demands inclusion. 34 c. The secretary shall conduct the special referendum under 35 -13- LSB 5561YH (8) 86 da/rj 13/ 114
H.F. 2465 this subsection or include the special question as part of a 1 special referendum conducted under section 179.13, subsection 2 2, in consultation with the commission and which may be based 3 on the same procedures for conducting a special referendum 4 under section 179.13, subsection 2. 5 d. If the secretary determines that the termination of 6 a state assessment for clean water is favored by a majority 7 of the producers voting in a special referendum under this 8 subsection, or a special referendum conducted under section 9 179.13, subsection 2, the state assessment shall terminate on a 10 date determined by the secretary after consultation with the 11 commission but not later than six months after the date that 12 the special or initial referendum was conducted. The secretary 13 shall terminate the state assessment in an orderly manner as 14 soon as practical. 15 5. The secretary shall terminate the state assessment for 16 clean water upon determining that the state assessment for 17 direct use and the national assessment are terminated. The 18 secretary shall terminate the state assessment for clean water 19 in an orderly manner as soon as practical. 20 DIVISION II 21 IOWA BEEF CATTLE PRODUCERS ASSOCIATION —— EXECUTIVE COMMITTEE 22 Sec. 13. Section 181.1, subsection 3, Code 2016, is amended 23 by striking the subsection and inserting in lieu thereof the 24 following: 25 3. “Executive committee” means the executive committee of 26 the association as created in section 181.3 . 27 Sec. 14. Section 181.1, subsection 6, paragraph b, Code 28 2016, is amended to read as follows: 29 b. The person acquired ownership of cattle to facilitate 30 the transfer of ownership of such cattle from the seller to a 31 third party; resold such cattle no later than ten days from the 32 date on which the person acquired ownership; and certified as 33 required by rules adopted by the council executive committee . 34 Sec. 15. Section 181.1, subsection 10, Code 2016, is amended 35 -14- LSB 5561YH (8) 86 da/rj 14/ 114
H.F. 2465 to read as follows: 1 10. “State assessment” means an excise tax on the sale of 2 cattle imposed pursuant to this chapter which may include a 3 state assessment for direct use and a state assessment for 4 clean water . 5 Sec. 16. Section 181.2, Code 2016, is amended to read as 6 follows: 7 181.2 Duties and objects of association. 8 The Iowa beef cattle producers association shall do all of 9 the following: 10 1. Aid in the marketing and promotion of the cattle industry 11 of the state. 12 2. Provide for practical and scientific instruction in 13 the breeding and raising of cattle Conduct research on beef 14 production and evaluate Iowa beef production needs . 15 3. Make demonstrations in the feeding of cattle and publish 16 suggestions beneficial to such business Provide educational 17 materials and opportunities to consumers, producers, and youth 18 regarding the benefits of Iowa’s beef cattle industry . 19 4. Aid and promote cattle feeding contests, shows, and 20 sales. 21 5. 4. Prepare an annual report of the proceedings and 22 expenditures of the council executive committee as provided in 23 section 181.18B . 24 5. Cooperate with the division of soil conservation and 25 water quality of the department of agriculture and land 26 stewardship in transferring moneys collected from the state 27 assessment for clean water to the clean water fund created 28 in section 466B.51 and for being reimbursed for reasonable 29 expenses incurred in conducting an initial or special 30 referendum to establish, continue, or terminate a state 31 assessment for clean water. 32 Sec. 17. Section 181.3, Code 2016, is amended to read as 33 follows: 34 181.3 Iowa beef industry council Executive committee —— 35 -15- LSB 5561YH (8) 86 da/rj 15/ 114
H.F. 2465 creation and operation . 1 1. An Iowa beef industry council executive committee of the 2 Iowa beef cattle producers association is created. The council 3 executive committee consists of eight ten members, including 4 all of the following: 5 a. Five producers elected by the Iowa beef cattle producers 6 association pursuant to section 181.6A . 7 b. Two producers appointed by the Iowa cattlemen’s 8 association. 9 c. One livestock market representative appointed pursuant to 10 subsection 2 . 11 c. d. The secretary of agriculture or a designee, who shall 12 serve as a voting an ex officio , voting member. 13 d. e. The dean of the college of agriculture and life 14 sciences of Iowa state university of science and technology or 15 a designee, who shall serve as a voting an ex officio , voting 16 member. 17 2. The Iowa livestock auction market association shall 18 nominate two livestock market representatives. The secretary 19 of agriculture shall appoint one of the nominees or another 20 livestock market representative of the secretary’s choice, who 21 shall serve at the pleasure of the secretary. 22 3. The council executive committee shall elect a 23 chairperson, secretary, and other officers it deems necessary. 24 4. a. A member who is a producer or livestock market 25 representative described in subsection 1 , paragraphs “a” 26 through “c” , shall serve a three-year term. The member shall 27 not serve more than two consecutive full terms. 28 b. Except for an ex officio members member , vacancies a 29 vacancy in the council executive committee resulting from 30 death, inability or refusal to serve, or failure to meet the 31 qualifications of this chapter shall be filled by the council 32 executive committee . If the council executive committee fails 33 to fill a vacancy, the secretary shall fill it. Vacancy 34 appointments A vacancy appointment shall be filled only for the 35 -16- LSB 5561YH (8) 86 da/rj 16/ 114
H.F. 2465 remainder of the unexpired term. 1 Sec. 18. Section 181.4, Code 2016, is amended to read as 2 follows: 3 181.4 Employees of council Executive committee —— employees . 4 The council executive committee may employ two or more 5 competent persons who shall devote their entire time, under 6 the direction of the council executive committee , in carrying 7 out the provisions of this chapter . The salary of persons so 8 employed shall be set by the council executive committee , and 9 the persons shall hold office at the pleasure of the council 10 executive committee . 11 Sec. 19. Section 181.6A, Code 2016, is amended to read as 12 follows: 13 181.6A Election of council Executive committee —— election . 14 1. The Iowa beef cattle producers association shall hold an 15 annual meeting of producers. An election shall be held at the 16 annual meeting, as necessary, for election of producers to the 17 council executive committee . 18 2. Prior to the annual meeting, the association shall 19 appoint a nominating committee. At least sixty days prior to 20 the annual meeting of the association, the nominating committee 21 shall nominate two producers as candidates for each position 22 on the council executive committee for which an election is to 23 be held. At least forty-five days prior to the annual meeting 24 of the association, additional candidates may be nominated by 25 a written petition of fifty producers. Procedures governing 26 the place of filing and the contents of the petition shall be 27 promulgated and publicized by the council executive committee . 28 3. Producers attending the annual meeting of the 29 association may vote for one nominee for each position on the 30 council executive committee for which an election is held. 31 Producers not attending the annual meeting of the association 32 may vote by absentee ballot if the ballot is requested and 33 mailed, with proper postage, to the council executive committee 34 prior to the annual meeting of the association. For each 35 -17- LSB 5561YH (8) 86 da/rj 17/ 114
H.F. 2465 position for which an election is held, the candidate receiving 1 the highest number of votes shall be elected. 2 4. Notice of election for council executive committee 3 membership shall be given by the council executive committee by 4 publication in a newspaper of general circulation in the state 5 and in any other reasonable manner as determined by the council 6 executive committee , and shall set forth the date, time, and 7 place of the annual meeting of the association. The council 8 executive committee shall administer the elections, with the 9 assistance of the secretary. 10 Sec. 20. Section 181.7, Code 2016, is amended to read as 11 follows: 12 181.7 Research Executive committee —— research and education 13 programs. 14 The council executive committee shall initiate, administer, 15 or participate in research and education programs directed 16 toward the better and more efficient production, promotion, and 17 utilization of cattle and the marketing of products made from 18 cattle. The council executive committee shall provide for the 19 methods and means that it determines are necessary to further 20 the purposes of this section , including but not limited to any 21 of the following: 22 1. Providing public relations and other promotion 23 techniques for the maintenance of present markets. 24 2. Making donations to nonprofit organizations furthering 25 the purposes of this section . 26 3. Assisting in the development of new or larger domestic 27 markets for products made from cattle. 28 4. Assisting in the development of new or larger foreign 29 markets for cattle and products made from cattle. 30 Sec. 21. Section 181.7A, Code 2016, is amended to read as 31 follows: 32 181.7A Commencement of federal assessment —— suspension and 33 recommencement of state assessment —— rate . 34 1. Prior to the commencement of the collection of the 35 -18- LSB 5561YH (8) 86 da/rj 18/ 114
H.F. 2465 federal assessment, the council executive committee may seek 1 certification as a qualified state beef council within the 2 meaning of the federal Act. 3 2. The council executive committee shall suspend the 4 state assessment for direct use upon collection of the 5 federal assessment. The state assessment for direct use shall 6 recommence upon the earlier of the following: 7 a. The noncollection of the federal assessment. The 8 recommenced state assessment for direct use shall be imposed 9 for a four-year period. Its effective date shall be the first 10 date for which the federal assessment is not collected. 11 b. The passage of a special referendum pursuant to section 12 181.19 regardless of whether a federal assessment is being 13 collected. 14 3. The rate of the recommenced state assessment for direct 15 use shall be the same as the rate that was last in effect under 16 section 181.19 immediately prior to the suspension of the state 17 assessment. 18 4. The state assessment for clean water shall continue to be 19 imposed during any period of suspension of the state assessment 20 for direct use so long as the state assessment for clean water 21 is not terminated pursuant to section 181.19A. 22 Sec. 22. Section 181.8, Code 2016, is amended to read as 23 follows: 24 181.8 Entering Executive committee —— entering premises —— 25 examining records. 26 The council executive committee may authorize its agents to 27 enter at a reasonable time upon the premises of any purchaser 28 charged by this chapter with remitting the state assessment for 29 direct use to the council executive committee , and to examine 30 records and other instruments relating to the collection of the 31 state assessment. However, the council executive committee 32 must first have reasonable grounds to believe that the state 33 assessment for direct use has not been remitted or fully 34 accounted for. 35 -19- LSB 5561YH (8) 86 da/rj 19/ 114
H.F. 2465 The council may enter into arrangements with persons 1 purchasing cattle outside of this state for remitting the state 2 assessment by such purchasers. 3 Sec. 23. Section 181.11, Code 2016, is amended to read as 4 follows: 5 181.11 Collection of state assessment. 6 1. A state assessment for direct use or a state assessment 7 for clean water imposed as provided in this chapter shall be 8 levied and collected from the purchaser on each sale of cattle 9 at a rate provided in this chapter . The state assessment shall 10 be imposed on any person selling cattle and shall be deducted 11 by the purchaser from the price paid to the seller. The 12 purchaser, at the time of the sale, shall make and deliver to 13 the seller a separate invoice for each sale showing the names 14 and addresses of the seller and the purchaser, the number of 15 cattle sold, and the date of sale. The purchaser shall forward 16 the state assessment to the council executive committee at a 17 time prescribed by the council executive committee , but not 18 later than the last day of the month following the end of the 19 prior reporting period in which the cattle are sold. 20 2. The executive committee may enter into arrangements with 21 persons purchasing cattle outside of this state for remitting 22 the state assessment for direct use or the state assessment for 23 clean water by such purchasers. 24 Sec. 24. Section 181.12, Code 2016, is amended to read as 25 follows: 26 181.12 Remission of state assessment on application. 27 1. a. A person from whom a state assessment for direct 28 use is collected may, by written application filed with the 29 council executive committee within sixty ninety days after 30 its collection, have the amount remitted to the person by the 31 council executive committee . 32 b. A person from whom a state assessment for clean water is 33 collected may, by written application filed with the executive 34 committee as provided in paragraph “a” , have the amount 35 -20- LSB 5561YH (8) 86 da/rj 20/ 114
H.F. 2465 remitted to the person by the division of soil conservation 1 and water quality of the department of agriculture and land 2 stewardship. Within ninety days after its collection, the 3 executive committee shall transmit any approved application to 4 the division for a refund payment. 5 2. The information described in subsection 1 that the 6 state assessment is refundable and the address of the council 7 executive committee to which application for a refund may be 8 made shall appear on the invoice of sale form supplied by the 9 purchaser to the producer near the area on the form which shows 10 the amount of the state assessment paid. 11 3. The council executive committee shall furnish uniform 12 application for refund forms and envelopes properly addressed 13 to the council to each purchaser charged by this chapter with 14 remitting the state assessment in sufficient number to make the 15 refund forms and envelopes readily available to all producers. 16 A purchaser charged by this chapter with remitting the state 17 assessment shall display the application for refund forms and 18 envelopes in a prominent position in its place of business and 19 make them the forms readily available to all producers. The 20 form shall allow the applicant to elect whether the refund is 21 for the state assessment for direct use or the state assessment 22 for clean water or both. 23 Sec. 25. Section 181.13, Code 2016, is amended to read as 24 follows: 25 181.13 Administration of moneys originating from state 26 assessment —— appropriation. 27 1. a. All moneys, other than moneys from the state 28 assessments assessment for clean water imposed under this 29 chapter shall be paid to and collected by the council executive 30 committee and deposited with the treasurer of state in a 31 separate cattle promotion fund which shall be created by 32 the treasurer of state. The department of administrative 33 services shall transfer moneys from the fund to the council 34 executive committee for deposit into an account established 35 -21- LSB 5561YH (8) 86 da/rj 21/ 114
H.F. 2465 by the council executive committee in a qualified financial 1 institution. The department shall transfer the moneys as 2 provided in a resolution adopted by the council executive 3 committee . However, the department is only required to 4 transfer moneys once during each day and only during hours when 5 the offices of the state are open. From the moneys , other than 6 moneys from the state assessment for clean water, collected, 7 deposited, and transferred to the council executive committee , 8 in accordance with the provisions of this chapter , the council 9 executive committee shall first pay the costs of referendums 10 held pursuant to this chapter , the costs of collection of such 11 state assessments, and the expenses of its agents. At least 12 ten percent of the remaining moneys shall be remitted to the 13 association in proportions determined by the council executive 14 committee , for use in a manner not inconsistent with section 15 181.7 . The remaining moneys, with approval of a majority of 16 the council executive committee , shall be expended as the 17 council executive committee finds necessary to carry out the 18 provisions and purposes of this chapter . However, in no event 19 shall the total expenses exceed the total amount transferred 20 from the fund for use by the council executive committee . 21 2. b. All moneys deposited in the cattle promotion fund 22 and transferred to the council executive committee pursuant 23 to this section are appropriated and shall be used for 24 the administration of this chapter and for the payment of 25 claims based upon obligations incurred in the performance of 26 activities and functions set forth in this chapter . 27 3. c. If the state assessment for direct use is suspended 28 as provided in section 181.7A or a continuance special 29 referendum to continue the state assessment for direct use 30 fails to pass as provided in section 181.19A , moneys remaining 31 in the cattle promotion fund and transferred to the council 32 executive committee shall continue to be transferred and 33 expended in accordance with the provisions of this chapter 34 until exhausted. 35 -22- LSB 5561YH (8) 86 da/rj 22/ 114
H.F. 2465 2. a. All moneys collected from the state assessment for 1 clean water imposed under this chapter shall be paid to and 2 collected by the executive committee and may be deposited in a 3 qualified financial institution until transferred to the clean 4 water fund created in section 466B.51. If the state assessment 5 for clean water is terminated as provided in section 181.19A, 6 the remaining moneys collected from that state assessment shall 7 be immediately transferred to the clean water fund. 8 b. Except as otherwise expressly provided in this chapter, 9 moneys collected from the state assessment for clean water 10 shall not be used for any purpose other than to be transferred 11 to the clean water fund created in section 466B.51. 12 Sec. 26. Section 181.17, Code 2016, is amended to read as 13 follows: 14 181.17 Producers not members. 15 A producer who is not a member of the Iowa beef cattle 16 producers association shall be entitled to vote in elections 17 of persons to be members of the council executive committee in 18 the same manner as if the producer were a member. The members 19 elected to the council executive committee shall elect from 20 their number the officers referred to in section 181.1A . 21 Sec. 27. Section 181.18, Code 2016, is amended to read as 22 follows: 23 181.18 Rules. 24 All rules of the council heretofore or hereinafter 25 promulgated adopted by the executive committee shall be subject 26 to the provisions of chapter 17A . 27 Sec. 28. Section 181.18B, Code 2016, is amended to read as 28 follows: 29 181.18B Report. 30 Each year, the council executive committee shall prepare 31 and submit a report summarizing the activities of the council 32 executive committee under this chapter to the auditor of state 33 and the secretary of agriculture. The report shall show all 34 income, expenses, and other relevant information concerning 35 -23- LSB 5561YH (8) 86 da/rj 23/ 114
H.F. 2465 fees collected and expended under this chapter . 1 Sec. 29. Section 181.19, Code 2016, is amended to read as 2 follows: 3 181.19 Initial and special referendums —— rates . 4 1. The secretary shall, upon the petition of five hundred 5 producers, conduct an initial referendum to determine whether 6 a state assessment for direct use is to be established. If 7 established, the state assessment for direct use shall be 8 imposed , at a rate established by the council of executive 9 committee not to exceed fifty cents one dollar per head on all 10 cattle sold for any purpose. 11 2. The secretary shall, upon the petition of five hundred 12 producers, conduct a special referendum to do any of the 13 following: 14 a. Determine whether a state assessment for direct use 15 already imposed shall be increased to a rate, established by 16 the council executive committee , not to exceed one dollar per 17 head on all cattle sold for any purpose. 18 b. Determine whether a state assessment for direct use 19 suspended pursuant to section 181.7A is to be in addition to a 20 federal assessment. The state assessment for direct use shall 21 be imposed at a rate of fifty cents one dollar per head on all 22 cattle sold for whatever purpose. 23 3. a. Upon receipt of a petition that otherwise complies 24 with the requirements of subsection 1, the secretary shall 25 conduct a special referendum to establish a state assessment 26 for clean water to be imposed in the same manner as a state 27 assessment for direct use. 28 b. The rate of the state assessment for clean water shall 29 be established by the executive committee not to exceed the 30 rate of the state assessment for direct use in effect on the 31 date that the special referendum to impose a state assessment 32 for clean water passes. However, if a federal assessment is 33 imposed, the rate of the state assessment for clean water shall 34 be established by the executive committee not to exceed the 35 -24- LSB 5561YH (8) 86 da/rj 24/ 114
H.F. 2465 rate of the federal assessment. If a state assessment for 1 direct use and a federal assessment are both being imposed, 2 the rate of the state assessment for clean water shall be 3 established by the executive committee not to exceed the rate 4 of the state assessment for direct use plus the rate of the 5 federal assessment. 6 4. Upon receipt of a petition that otherwise complies with 7 the requirements of subsection 1, the secretary shall include 8 as part of the initial referendum a separate special question 9 whether to establish a state assessment for clean water as 10 described in subsection 3, if the secretary determines the 11 inclusion of the special question is cost-effective or the 12 petition demands inclusion. 13 5. a. Upon receipt of a petition that otherwise complies 14 with the requirements of subsection 2, the secretary shall 15 conduct a special referendum to change the rate of the state 16 assessment for clean water to be established by the executive 17 committee not to exceed the rate of the state assessment 18 for direct use and any federal assessment as described in 19 subsection 2. 20 b. Upon receipt of a petition that otherwise complies with 21 the requirements of subsection 2, the secretary shall include 22 as part of the special referendum conducted under subsection 23 2 a separate special question whether to change the rate of 24 the state assessment for clean water to be established by 25 the executive committee not to exceed the rate of the state 26 assessment for direct use and any federal assessment as 27 described in subsection 2, if the secretary determines the 28 inclusion of the special question is cost-effective or the 29 petition demands inclusion. 30 6. a. If a an initial referendum or a special referendum 31 described in this section passes, the secretary shall establish 32 an effective date to commence the state assessment for direct 33 use or the change in the rate of the state assessment for 34 direct use . However, the state assessment or the change in the 35 -25- LSB 5561YH (8) 86 da/rj 25/ 114
H.F. 2465 rate of the state assessment must be commenced within ninety 1 days from the date that the secretary determines that the 2 referendum has passed. 3 b. If a state assessment for clean water is established 4 or the rate of the state assessment for clean water changes 5 under this section, the secretary shall establish an effective 6 date to commence the state assessment or change the rate of the 7 state assessment in the same manner as provided in paragraph 8 “a” . 9 4. 7. a. If a special referendum to increase the rate of 10 the state assessment for direct use does not pass, the result 11 of the special referendum shall not affect the existence or 12 length of the state assessment that is in effect on the date 13 that the special referendum was conducted. 14 b. If a special referendum, or a special question that is 15 part of a special referendum conducted under this section, to 16 change the rate of the state assessment for clean water does 17 not pass, the result of the vote shall not affect the existence 18 or period that the state assessment is in effect. 19 8. A state assessment for clean water is terminated on the 20 date that the state assessment for direct use is terminated, 21 unless a federal assessment is imposed. 22 Sec. 30. Section 181.19A, Code 2016, is amended to read as 23 follows: 24 181.19A Continuance referendum Special referendums —— 25 continuance or termination . 26 1. The secretary shall, upon the receipt of a petition 27 of producers, conduct a continuance special referendum to 28 determine whether a state assessment for direct use established 29 in section 181.19 should be renewed continued . The secretary 30 must receive the petition not less than one hundred fifty and 31 not more than two hundred forty days before the four-year 32 anniversary of a state assessment’s the effective date of 33 the state assessment for direct use . The petition must be 34 signed within that period by a number of producers equal to 35 -26- LSB 5561YH (8) 86 da/rj 26/ 114
H.F. 2465 or greater than two percent of the number of producers in 1 this state reported in the most recent United States census 2 of agriculture, requesting a special referendum to determine 3 whether to continue the state assessment for direct use . 4 The special referendum shall be conducted not earlier than 5 thirty days before the four-year anniversary date of the state 6 assessment for direct use . 7 2. a. The secretary shall, upon receipt of a petition 8 of producers otherwise complying with the requirements of 9 subsection 1, conduct a special referendum to determine whether 10 the state assessment for clean water established in section 11 181.19 should be continued. The special referendum shall be 12 conducted in the same manner as a special referendum conducted 13 under subsection 1. 14 b. The secretary shall, upon receipt of a petition complying 15 with the requirements of subsection 1, include as part of a 16 special referendum provided in subsection 1 a separate special 17 question whether a state assessment for clean water should be 18 continued, if the secretary determines the inclusion of the 19 special question is cost-effective or the petition demands 20 inclusion. 21 2. 3. a. If the secretary determines that a continuance 22 special referendum has passed under subsection 1 , the state 23 assessment for direct use shall continue in effect for four 24 additional years from the anniversary of its effective date. 25 b. If the secretary determines that a special referendum 26 or special question to continue the state assessment for clean 27 water has passed under subsection 2, the state assessment shall 28 be in effect until the anniversary of the effective date of the 29 state assessment for direct use described in paragraph “a” . 30 3. 4. a. If the secretary determines that the a special 31 referendum to continue the state assessment for direct use has 32 not passed, the secretary and the council executive committee 33 shall terminate the state assessment in an orderly manner as 34 soon as practicable after the determination. 35 -27- LSB 5561YH (8) 86 da/rj 27/ 114
H.F. 2465 b. If the secretary determines that a special referendum to 1 continue the state assessment for clean water has not passed, 2 the secretary and the executive committee shall terminate the 3 state assessment in the same manner as described in paragraph 4 “a” . 5 c. A state assessment for clean water is terminated on the 6 date that the state assessment for direct use is terminated, 7 unless a federal assessment is imposed. 8 5. a. Another If the secretary determines that a special 9 referendum to continue the state assessment for direct use has 10 not passed, another initial referendum conducted under section 11 181.19 to determine whether to establish a state assessment 12 shall not be held conducted for at least one hundred eighty 13 days from the date that the state assessment is terminated. 14 b. If the secretary determines that a special referendum to 15 continue the state assessment for clean water has not passed, 16 another special referendum to establish the state assessment 17 or another initial or special referendum that includes a 18 special question to establish the state assessment shall not be 19 conducted for at least one hundred eighty days from the date 20 that the state assessment was terminated. 21 4. 6. If no a valid petition for a continuance referendum 22 provided in this section is not received by the secretary 23 within the time period provided in this section , the state 24 assessment for direct use or the state assessment for clean 25 water shall continue in effect for four additional years from 26 the anniversary of its the effective date of the initial 27 referendum establishing the state assessment for direct use . 28 Sec. 31. REPEAL. 2004 Iowa Acts, chapter 1037, section 17, 29 is repealed. 30 Sec. 32. REPEAL. 2016 Iowa Acts, House File 2269, is 31 repealed. 32 Sec. 33. TRANSITION —— APPOINTMENT AND TERMS OF EXECUTIVE 33 COMMITTEE MEMBERS. 34 1. This Act’s amendments changing the name of the “Iowa beef 35 -28- LSB 5561YH (8) 86 da/rj 28/ 114
H.F. 2465 industry council” to the “executive committee” of the Iowa beef 1 cattle producers association shall not affect the appointment 2 or term of office of a member who served on the Iowa beef 3 industry council immediately prior to the effective date of 4 this Act. That member shall continue to serve on the executive 5 committee until the member’s term expires. 6 2. The executive committee of the Iowa beef cattle producers 7 association created in section 181.3 as amended in this 8 Act may establish terms for any number of the five members 9 first elected or reelected by the Iowa beef cattle producers 10 association under that section on or after the effective 11 date of this Act to ensure elected members serve staggered 12 terms. The executive committee may also establish initial 13 terms for the two new members appointed by the Iowa cattlemen’s 14 association under that section as amended by this Act to 15 ensure appointed members serve staggered terms. The executive 16 committee shall operate under 101 IAC 1.5 and 1.6 until the 17 appointment of the new members. 18 Sec. 34. TRANSITION —— ADMINISTRATIVE RULES AND OTHER 19 ACTIONS AND DOCUMENTS. Any rule, form, order, or directive 20 promulgated by the Iowa beef industry council created in 21 section 181.3 , in force and effect immediately prior to the 22 effective date of this Act, shall continue in full force and 23 effect until the earlier of the following: 24 1. It is amended, rescinded, or supplemented by the 25 affirmative action of the executive committee of the Iowa beef 26 cattle producers association created in section 181.3 , as 27 amended in this Act. 28 2. It expires by its own terms. 29 DIVISION III 30 IOWA SHEEP AND WOOL PROMOTION BOARD 31 Sec. 35. Section 182.1, subsection 1, Code 2016, is amended 32 to read as follows: 33 1. “Assessment” means an excise tax on the sale of sheep 34 or wool as provided in this chapter which may include an 35 -29- LSB 5561YH (8) 86 da/rj 29/ 114
H.F. 2465 assessment for direct use and a state assessment for clean 1 water . 2 Sec. 36. Section 182.1, Code 2016, is amended by adding the 3 following new subsection: 4 NEW SUBSECTION . 6A. “Qualified financial institution” means 5 a bank or credit union as defined in section 12C.1. 6 Sec. 37. Section 182.2, Code 2016, is amended to read as 7 follows: 8 182.2 Petition for initial referendum election . 9 Upon receipt of a petition signed by at least fifty producers 10 in each district requesting a an initial referendum by election 11 to determine whether to establish the board and to impose an 12 assessment for direct use , the secretary shall call a the 13 initial referendum to be conducted within sixty days following 14 receipt of the petition. 15 Sec. 38. Section 182.3, Code 2016, is amended to read as 16 follows: 17 182.3 Notice of initial referendum. 18 The secretary shall give notice of the initial referendum 19 on the question of whether to establish an Iowa sheep and wool 20 promotion board and to impose the an assessment for direct use 21 by publishing the notice for a period of not less than five 22 days in at least one newspaper of general circulation in the 23 state. The notice shall state the voting places, period of 24 time for voting, and other information deemed necessary by the 25 secretary. 26 A An initial referendum shall not be commenced until five 27 days after the last date of publication. 28 Sec. 39. Section 182.4, Code 2016, is amended to read as 29 follows: 30 182.4 Establishment of sheep and wool promotion board —— 31 assessment assessments —— termination. 32 1. Each producer who signs a statement certifying that 33 the producer is a bona fide producer is entitled to one vote 34 in an initial referendum conducted under this section . At 35 -30- LSB 5561YH (8) 86 da/rj 30/ 114
H.F. 2465 the close of the initial referendum, the secretary shall 1 count and tabulate the ballots cast. If a majority of voters 2 favor establishing an Iowa sheep and wool promotion board and 3 imposing establishing an assessment for direct use , an Iowa 4 sheep and wool promotion the board and assessment shall be 5 established. The assessment for direct use shall be imposed 6 commencing not more than sixty days following the initial 7 referendum as determined by the Iowa sheep and wool promotion 8 board, and shall continue until the board and assessment for 9 direct use are terminated by a special referendum as provided 10 in conducted pursuant to subsection 2 4 . 11 2. a. If the board is in existence, and upon receipt of 12 a petition signed by at least twenty-five producers in each 13 district requesting a special referendum to determine whether 14 to establish a state assessment for clean water, the secretary 15 shall call the special referendum to be conducted in the same 16 manner as provided in subsection 1. 17 b. If a board is not in existence, and upon receipt of a 18 petition that complies with the requirements of paragraph “a” 19 the secretary shall include as part of the initial referendum 20 a separate special question whether to establish a state 21 assessment for clean water, if the secretary determines the 22 inclusion of the special question is cost-effective or the 23 petition demands inclusion. 24 c. If a majority of voters favor establishing the state 25 assessment for clean water, the state assessment shall be 26 imposed in the same manner and for the same period as the 27 assessment for direct use described in subsection 1. 28 3. a. If a majority of the voters do not favor establishing 29 an Iowa sheep and wool promotion a board and imposing the an 30 assessment for direct use , the board and an assessment shall 31 not be established, and the assessment shall not be imposed 32 and the board shall not be established until another initial 33 referendum is held conducted under this chapter and a majority 34 of the voters favor establishing a board and imposing the an 35 -31- LSB 5561YH (8) 86 da/rj 31/ 114
H.F. 2465 assessment. If a an initial referendum fails, another initial 1 referendum shall not be held within conducted for at least 2 one hundred eighty days from the date of the last initial 3 referendum . 4 b. If a majority of the voters do not favor establishing a 5 state assessment for clean water, the state assessment shall 6 not be established until another special referendum, or another 7 special question that is part of an initial referendum, is 8 conducted under this chapter and a majority of the voters favor 9 establishing the state assessment. If a special referendum or 10 special question fails, another special referendum or initial 11 referendum which includes a special question shall not be 12 conducted within one hundred eighty days from the date that 13 the last such special referendum or initial referendum was 14 conducted. 15 2. 4. Upon receipt of a petition signed by at least 16 twenty-five producers in each district requesting a special 17 referendum election to determine whether to terminate the 18 establishment of the Iowa sheep and wool promotion board and 19 to terminate the imposition of the and the assessment for 20 direct use , the secretary shall call a special referendum to 21 be conducted within sixty days following the receipt of the 22 petition. The petitioners shall guarantee the payment of the 23 costs of a the special referendum held conducted under this 24 subsection . If the majority of the voters of a voting at the 25 special referendum do not favor termination, an additional 26 special referendum may be held conducted when the secretary 27 receives a petition signed by at least twenty-five producers in 28 each district. However, the additional referendum shall not be 29 held within conducted for at least one hundred eighty days from 30 the date of the last such special referendum . 31 5. a. Upon receipt of a petition that otherwise complies 32 with the requirements of subsection 4 requesting a special 33 referendum election to determine whether to terminate the 34 establishment of the state assessment for clean water, the 35 -32- LSB 5561YH (8) 86 da/rj 32/ 114
H.F. 2465 secretary shall call a special referendum to be conducted in 1 the same manner as provided in subsection 4. 2 b. Upon receipt of a petition that otherwise complies 3 with the requirements of subsection 4, the secretary shall 4 include as part of the special referendum conducted under that 5 subsection a separate special question whether to terminate the 6 state assessment for clean water, if the secretary determines 7 the inclusion of the special question is cost-effective or the 8 petition demands inclusion. 9 c. The petitioners shall guarantee the payment of the costs 10 of the special referendum conducted under this subsection. 11 d. If the majority of the voters of a special referendum 12 conducted under this subsection do not favor termination, 13 an additional special referendum may be conducted when 14 the secretary receives a petition complying with the same 15 requirements as described in this subsection. However, the 16 additional special referendum shall not be conducted for at 17 least one hundred eighty days from the date of the last such 18 special referendum. 19 6. A state assessment for clean water is terminated on the 20 date that the assessment for direct use is terminated. The 21 secretary shall terminate the state assessment for clean water 22 in an orderly manner as soon as practical. 23 Sec. 40. Section 182.11, Code 2016, is amended to read as 24 follows: 25 182.11 Purposes of board. 26 1. The purposes of the board shall be to: 27 1. a. Enter into contracts or agreements with or make 28 grants to recognized and qualified agencies, individuals, 29 or organizations for the development and carrying out of 30 research and education programs directed toward better and more 31 efficient production, marketing, and utilization of sheep and 32 wool and their products. 33 2. b. Provide methods and means, including, but not limited 34 to, public relations and other promotion techniques for the 35 -33- LSB 5561YH (8) 86 da/rj 33/ 114
H.F. 2465 maintenance of present markets. 1 3. c. Assist in development of new or larger markets, both 2 domestic and foreign, for sheep and wool and their products. 3 2. The board shall cooperate with the division of soil 4 conservation and water quality of the department of agriculture 5 and land stewardship in doing all of the following: 6 a. Transferring moneys collected from the state assessment 7 for clean water to the clean water fund created in section 8 466B.51. 9 b. Being reimbursed for reasonable expenses incurred in 10 conducting an initial or special referendum to establish, 11 continue, or terminate a state assessment for clean water. 12 Sec. 41. Section 182.13, Code 2016, is amended to read as 13 follows: 14 182.13 Compensation —— meetings. 15 Members of the board may receive payment for their actual 16 expenses and travel in performing official board functions. 17 Payment shall be made from amounts collected from the 18 assessment for direct use . No A member of the board shall not 19 be a salaried employee of the board or any organization or 20 agency receiving funds moneys collected from the board. The 21 board shall meet at least once every three months, and at other 22 times it deems necessary. 23 Sec. 42. Section 182.13B, Code 2016, is amended to read as 24 follows: 25 182.13B Assessment rate rates . 26 1. a. If a majority of voters voting at a an initial 27 referendum conducted pursuant to section 182.4 approve the 28 establishment of an Iowa sheep and wool promotion the board and 29 the imposition of an assessment for direct use , the assessment 30 shall be imposed on wool and sheep at the following rates: 31 a. (1) For wool, two cents imposed on each pound of wool 32 sold by a producer. 33 b. (2) For sheep, ten cents imposed on each head of sheep 34 sold by a producer. 35 -34- LSB 5561YH (8) 86 da/rj 34/ 114
H.F. 2465 b. If a majority of voters voting at a special referendum 1 conducted pursuant to section 182.4 approve the establishment 2 of a state assessment for clean water, the state assessment 3 shall be imposed on wool and sheep at the rates established by 4 board resolution not to exceed the rates described in paragraph 5 “a” . 6 2. a. Notwithstanding subsection 1 , upon a resolution 7 adopted by the board, the secretary shall call a special 8 referendum for voters to authorize increasing the assessment 9 rate of the assessment for direct use imposed on sheep as 10 provided in this section or increasing the assessment for 11 direct use imposed on sheep as provided in this section . 12 b. Notwithstanding subsection 1, upon resolution adopted by 13 the board, the secretary shall call a special referendum for 14 voters to authorize increasing the rate of the state assessment 15 for clean water imposed on sheep as provided in this section. 16 The secretary shall include as part of the special referendum 17 to increase the rate of the assessment for direct use a 18 separate special question whether to increase the rate of the 19 state assessment for clean water, if the secretary determines 20 the inclusion of the special question is cost-effective or the 21 resolution demands inclusion. 22 b. c. The special referendum to increase the rate of the 23 assessment for direct use or to increase the rate of the state 24 assessment for clean water shall be conducted in the same 25 manner as a an initial referendum conducted upon receipt of 26 a petition as provided in this chapter section 182.4 , unless 27 otherwise provided in the board’s resolution. Only producers 28 are eligible to vote in an election the special referendum and 29 each producer is entitled to one vote. 30 3. a. The special referendum to increase the rate of the 31 assessment for direct use conducted pursuant to subsection 2 32 shall allow a voter to cast a ballot for the following two 33 questions: 34 a. (1) For the first question, whether to authorize an 35 -35- LSB 5561YH (8) 86 da/rj 35/ 114
H.F. 2465 increase in the rate of assessment rate for direct use to 1 twenty-five cents imposed on each head of sheep. 2 b. (2) For the second question, if the first question is 3 approved by a majority of voters, whether to also authorize the 4 board to increase that assessment the rate of the assessment 5 for direct use by future resolution as provided in this 6 section . 7 b. The special referendum to increase the rate of the state 8 assessment for clean water shall be conducted in the same 9 manner as described in subsection 3 and shall allow a voter to 10 cast a ballot for the following two questions: 11 (1) For the first question, whether to authorize an increase 12 in the rate of state assessment for clean water to a rate 13 established by board resolution not to exceed the increased 14 rate of assessment for direct use described in subsection 3, 15 paragraph “a” , subparagraph (1). 16 (2) For the second question, if the first question is 17 approved by a majority of voters, whether to also authorize the 18 board to increase that rate of state assessment for clean water 19 by future resolution as provided in subsection 3, paragraph “a” , 20 subparagraph (2). 21 c. A state assessment for clean water shall not be effective 22 if the state assessment exceeds the assessment for direct use. 23 4. a. If a majority of voters approve the first question to 24 increase the rate of the assessment for direct use as described 25 in subsection 3, paragraph “a” , subparagraph (1) , twenty-five 26 cents shall be imposed on each head of sheep sold by a producer 27 as effectuated by the board pursuant to section 182.12 . 28 b. If a majority of voters also approve increasing the 29 rate of the state assessment for clean water as described in 30 subsection 3, paragraph “b” , subparagraph (1), the increased 31 rate shall be imposed on each head of sheep sold by a producer 32 as effectuated by the board pursuant to section 182.12. 33 5. a. If a majority of voters approve both the first and 34 second questions to increase the rate of the assessment for 35 -36- LSB 5561YH (8) 86 da/rj 36/ 114
H.F. 2465 direct use under subsection 3, paragraph “a” , subparagraphs (1) 1 and (2) , all of the following apply: 2 a. (1) Twenty-five The rate of the assessment for direct 3 use shall equal twenty-five cents shall be imposed on each 4 head of sheep sold by a producer as effectuated by the board 5 pursuant to section 182.12 . 6 b. (2) The board may adopt one or more resolutions to 7 further impose an increased rate of assessment rate for direct 8 use . 9 b. If a majority of voters also approve increasing the 10 rate of state assessment for clean water as described in 11 subsection 3, paragraph “b” , subparagraphs (1) and (2), all of 12 the following shall apply: 13 (1) The rate of the state assessment for clean water shall 14 equal the increase described in subsection 3, paragraph “b” , 15 subparagraph (1), imposed on each head of sheep sold by a 16 producer. 17 (2) The board may adopt one or more resolutions to further 18 impose an increased rate of state assessment for clean water 19 so long as the rate does not exceed the rate of the assessment 20 for direct use. 21 c. The increased assessment rate of the assessment for 22 direct use or the increased rate of the state assessment for 23 clean water shall be imposed on each head of sheep sold by 24 a producer as effectuated by the board pursuant to section 25 182.12 . The board shall comply with all of the following: 26 (1) The board must wait three or more years from the 27 effective date of the previous action imposing an increase in 28 the rate of the assessment for direct use in order to adopt 29 a resolution. For the first increase, the effective date is 30 the date of the special referendum to increase the rate of 31 the assessment . For any subsequent increase in the rate of 32 assessment , the effective date is the date that the board last 33 adopted a resolution imposing an increased rate as provided in 34 this paragraph “b” subsection . 35 -37- LSB 5561YH (8) 86 da/rj 37/ 114
H.F. 2465 (2) The board must wait three or more years from the 1 effective date of the previous action imposing an increase in 2 the rate of the state assessment for clean water in order to 3 adopt a resolution. For the first increase, the effective date 4 is the date of the special referendum to increase the rate 5 of the state assessment for clean water. For any subsequent 6 increase, the effective date is the date that the board last 7 adopted a resolution imposing an increased rate as provided in 8 this subsection. 9 (2) (3) The board shall not adopt a resolution until it 10 provides notice to producers of the proposed increase in the 11 assessment for direct use or the state assessment for clean 12 water and an opportunity for producers to submit written or 13 oral comments to the board regarding the proposed increase. 14 The board may provide notice by publication in the same manner 15 as provided in section 182.3 , publication on its internet 16 site, mail bearing a United States postal service postmark, 17 electronic transmission, or hand-delivery. 18 (3) (4) (a) The increase in the assessment rate of the 19 assessment for direct use imposed by a resolution adopted by 20 the board must shall equal five cents. However, the assessment 21 rate of the assessment for direct use imposed by a resolution 22 of the board shall not equal more than fifty cents. 23 (b) The increase in the rate of the state assessment 24 for clean water imposed by resolution adopted by the board 25 shall not exceed five cents. However, the rate of the state 26 assessment for clean water imposed by resolution of the board 27 shall not equal more than fifty cents. 28 6. a. If a majority of voters do not authorize increasing 29 the rate of the assessment rate for direct use pursuant to a 30 special referendum conducted pursuant to under this section , 31 the assessment rate for the assessment for direct use shall be 32 the same as provided in subsection 1 , paragraph “a” . 33 b. If a majority of voters do not authorize increasing the 34 rate of the assessment for direct use pursuant to a special 35 -38- LSB 5561YH (8) 86 da/rj 38/ 114
H.F. 2465 referendum conducted under this section, the rate for the state 1 assessment for clean water shall be the same as provided in 2 subsection 1, paragraph “b” . 3 b. 7. Not more than one special referendum to establish an 4 assessment for direct use or to establish a state assessment 5 for clean water shall be conducted pursuant to this section . 6 Sec. 43. Section 182.14, Code 2016, is amended to read as 7 follows: 8 182.14 Assessment Assessments . 9 1. An assessment for direct use or a state assessment for 10 clean water provided in this chapter shall be imposed on the 11 producer as follows: 12 a. If the producer sells wool or sheep to the first 13 purchaser within this state, the following shall apply: 14 (1) If the sale occurs at a concentration point, the 15 assessment shall be imposed at the time of delivery. The first 16 purchaser shall deduct the assessment or state assessment from 17 the price paid to the producer at the time of sale. 18 (2) If the sale does not occur at a concentration point, 19 the producer shall deduct the assessment or state assessment 20 from the amount received from the sale and shall forward the 21 amount deducted to the board within thirty days following each 22 calendar quarter. 23 b. If the producer sells, ships, or otherwise disposes of 24 wool or sheep to any person outside this state, the producer 25 shall deduct the assessment or state assessment from the amount 26 received from the sale and shall forward the amount deducted 27 to the board. 28 2. The assessment for direct use or the state assessment 29 for clean water imposed by this section shall be remitted to 30 the board not later than thirty days following each calendar 31 quarter during which the assessment amount or state assessment 32 amount was deducted. 33 Sec. 44. Section 182.15, subsection 1, paragraph e, Code 34 2016, is amended to read as follows: 35 -39- LSB 5561YH (8) 86 da/rj 39/ 114
H.F. 2465 e. The rate of withholding and the total amount of the 1 assessment for direct use and the state assessment for 2 clean water withheld. The board may require the invoice to 3 separately indicate the amount withheld for the assessment for 4 direct use and the state assessment for clean water. 5 Sec. 45. Section 182.16, Code 2016, is amended to read as 6 follows: 7 182.16 Deposit and disbursement Administration of funds 8 moneys . 9 1. The board shall deposit amounts moneys collected from the 10 assessment for direct use imposed pursuant to section 182.14 in 11 an account established pursuant to section 182.12 . Expenses 12 and disbursements incurred and made pursuant to this chapter 13 shall be made by voucher, draft, or check bearing the signature 14 of a person designated by majority vote of the board. 15 2. The board may deposit moneys collected from the state 16 assessment for clean water in a qualified financial institution 17 until transferred to the clean water fund created in section 18 466B.51. If the state assessment for clean water is terminated 19 as provided in section 182.4, the remaining moneys collected 20 from that state assessment shall be immediately transferred to 21 the clean water fund. 22 Sec. 46. Section 182.17, Code 2016, is amended to read as 23 follows: 24 182.17 Refunds. 25 1. a. A producer who has paid the assessment for direct use 26 may, by application in writing to the board, secure a refund of 27 all or part of the amount paid to the board . 28 b. A producer who has paid the state assessment for clean 29 water to the board may, by application in writing to the board, 30 secure a refund of all or part of the amount paid to the board. 31 The board shall transmit any approved application for a refund 32 to the division of soil conservation and water quality of the 33 department of agriculture and land stewardship for payment. 34 2. The refund shall be payable only when the application has 35 -40- LSB 5561YH (8) 86 da/rj 40/ 114
H.F. 2465 been made to the board within sixty days after the deduction 1 has been made by the producer or within sixty days after the 2 remittance has been made by the first purchaser. 3 3. Each application for refund by a producer shall have 4 an attached proof indicating that the assessment for direct 5 use was paid. If a state assessment for clean water is 6 imposed, the attached proof shall also indicate that the state 7 assessment has also been paid. The attached proof of the 8 assessment paid may be in the form of a duplicate or certified 9 copy of the purchase invoice by the purchaser. 10 4. The application shall allow the applicant to elect 11 whether the refund is for the assessment for direct use or the 12 state assessment for clean water or both. The board shall not 13 approve an application unless the application indicates the 14 election. 15 Sec. 47. Section 182.18, Code 2016, is amended to read as 16 follows: 17 182.18 Use of moneys. 18 1. Moneys from the assessment for direct use collected 19 under this chapter are subject to audit by the auditor of state 20 and shall be used by the Iowa sheep and wool promotion board 21 first for the payment of collection and refund expenses, second 22 for payment of the costs and expenses arising in connection 23 with conducting referendums, third for the purposes identified 24 in section 182.11 , and fourth for the cost of audits for 25 the auditor of state. Moneys of the board remaining after 26 a special referendum is held at which a majority of the 27 voters favor termination of the board and the assessment for 28 direct use shall continue to be expended in accordance with 29 this chapter until exhausted. The auditor of state may seek 30 reimbursement for the cost of the audit. 31 2. Except as expressly provided in this chapter, moneys 32 collected by the board from the state assessment for clean 33 water shall not be used for any purpose other than to be 34 transferred to the clean water fund created in section 466B.51. 35 -41- LSB 5561YH (8) 86 da/rj 41/ 114
H.F. 2465 2. 3. The board shall not engage in any political activity, 1 and it shall be a condition of any allocation of funds that 2 any organization receiving funds shall not expend the funds on 3 political activity or on any attempt to influence legislation. 4 Sec. 48. Section 182.22, Code 2016, is amended to read as 5 follows: 6 182.22 Purchasers outside Iowa. 7 The secretary may enter into arrangements with first 8 purchasers from outside Iowa for payment of the assessment for 9 direct use and the state assessment for clean water . 10 DIVISION IV 11 IOWA PORK PRODUCERS COUNCIL 12 IOWA PORK PRODUCERS ASSOCIATION 13 Sec. 49. Section 183A.1, subsection 1, Code 2016, is amended 14 to read as follows: 15 1. “Assessment” means an excise tax on the sale of porcine 16 animals as provided in this chapter which may include an 17 assessment for direct use and a state assessment for clean 18 water . 19 Sec. 50. Section 183A.1, Code 2016, is amended by adding the 20 following new subsection: 21 NEW SUBSECTION . 4A. “National assessment” means an excise 22 tax on the sale of porcine animals imposed pursuant to the Pork 23 Promotion Act. 24 Sec. 51. Section 183A.1, subsection 7, Code 2016, is amended 25 to read as follows: 26 7. “Pork Promotion Act” means the federal Pork Promotion, 27 Research, and Consumer Information Act of 1985 , 7 U.S.C. §4801 28 et seq . 29 Sec. 52. Section 183A.5, subsection 1, paragraph i, Code 30 2016, is amended to read as follows: 31 i. Receive, administer, disburse and account for, in 32 addition to the funds moneys received from the assessment for 33 direct use and the state assessment for clean water provided in 34 this chapter , other funds moneys voluntarily contributed to the 35 -42- LSB 5561YH (8) 86 da/rj 42/ 114
H.F. 2465 council for the purpose of promoting the pork industry. 1 Sec. 53. Section 183A.5, Code 2016, is amended by adding the 2 following new subsection: 3 NEW SUBSECTION . 4. The council shall cooperate with 4 the division of soil conservation and water quality of the 5 department of agriculture and land stewardship in doing all of 6 the following: 7 a. Transferring moneys collected from the state assessment 8 for clean water imposed as a result of a special referendum 9 conducted pursuant to section 183A.9 to the clean water fund 10 created in section 466B.51. 11 b. Being reimbursed for reasonable expenses incurred in 12 conducting an initial or special referendum to establish, 13 continue, or terminate a state assessment for clean water. 14 Sec. 54. Section 183A.6, Code 2016, is amended to read as 15 follows: 16 183A.6 Assessment Assessments . 17 1. The council shall make impose an assessment for direct 18 use of not less than point zero zero two nor more than point 19 zero zero three of the gross sale price of all porcine animals. 20 The assessment for direct use shall be point zero zero two five 21 of the gross sale price of porcine animals until consent to 22 an assessment has been given through the initial referendum 23 referred to in this chapter . After approval of the initial 24 referendum, the rate of assessment for direct use shall be 25 determined established by the council. 26 2. a. If an assessment for direct use is imposed under 27 subsection 1, the council shall impose a state assessment for 28 clean water if approved at a special referendum conducted 29 pursuant to section 183A.9. The rate of the state assessment 30 for clean water shall be established by the council as provided 31 in that section. 32 b. If a national assessment is imposed under section 33 183A.9A, the Iowa pork producers association shall impose a 34 state assessment for clean water if approved at a special 35 -43- LSB 5561YH (8) 86 da/rj 43/ 114
H.F. 2465 referendum conducted pursuant to section 183A.9. The rate 1 of the state assessment for clean water shall be established 2 by the Iowa pork producers association as provided in that 3 section. 4 3. a. The assessment for direct use and the state 5 assessment for clean water shall be made at the time of 6 delivery of the porcine animals for sale, and shall be deducted 7 by the first purchaser from the price paid to the seller. The 8 first purchaser, at the time of sale, shall make and deliver 9 to the seller an invoice for each purchase showing the names 10 and addresses of the seller and the first purchaser, the number 11 and kind of porcine animals sold, the date of sale, and the 12 assessment for direct use, and any state assessment for clean 13 water, made on the sale. The council may require the invoice 14 to separately indicate the amount withheld for the assessment 15 for direct use and the state assessment for clean water. 16 b. Assessments An assessment for direct use and the state 17 assessment for clean water shall be paid to the Iowa pork 18 producers council or its designated agent by first purchasers 19 at a time prescribed by the council, but not later than the 20 last day of the month following the month in which the animals 21 were purchased. 22 4. If a national assessment is imposed pursuant to section 23 183A.9A, and a state assessment for clean water is imposed 24 under section 183A.9, the Iowa pork producers association shall 25 impose and collect the state assessment for clean water in 26 the same manner as the assessment for direct use set forth in 27 subsection 3. However, the Iowa pork producers association may 28 impose and collect the state assessment for clean water based 29 on procedures for the national assessment as set forth in the 30 Pork Promotion Act. The invoice may correspond to any invoice 31 required by the Pork Promotion Act. 32 Sec. 55. Section 183A.7, Code 2016, is amended to read as 33 follows: 34 183A.7 Administration of moneys —— appropriation. 35 -44- LSB 5561YH (8) 86 da/rj 44/ 114
H.F. 2465 1. a. Assessments An assessment for direct use imposed 1 under this chapter pursuant to section 183A.6 and paid to and 2 collected by the Iowa pork producers council shall be deposited 3 in the pork promotion fund which is established in the office 4 of the treasurer of state. The department of administrative 5 services shall transfer moneys from the pork promotion fund 6 to the council for deposit into an account established by the 7 council in a qualified financial institution. The department 8 shall transfer the moneys as provided in a resolution adopted 9 by the council. However, the department is only required to 10 transfer moneys once during each day and only during hours when 11 the offices of the state are open. 12 b. All moneys deposited in the pork promotion fund and 13 transferred to the council as provided in this section are 14 appropriated and shall be used for the administration of this 15 chapter and for the payment of claims based upon obligations 16 incurred in the performance of activities and functions set 17 forth in this chapter . 18 c. From the moneys collected, deposited, and transferred 19 to the council as provided in this chapter , the council shall 20 first pay the costs of referendums held pursuant to this 21 chapter . Of the moneys remaining, at least twenty-five percent 22 shall be remitted to the national pork producers council and 23 at least fifteen percent shall be remitted to the Iowa pork 24 producers association, in the proportion the committee council 25 determines, for use by recipients in a manner not inconsistent 26 with market development as defined in section 183A.1 . Moneys 27 remaining shall be spent as found necessary by the council to 28 further carry out the provisions and purposes of this chapter . 29 d. However, in In no event shall the total expenses exceed 30 the total amount of moneys transferred from the pork promotion 31 fund for use by the council. 32 2. a. Moneys collected from a state assessment for clean 33 water by the council may be deposited in a qualified financial 34 institution and shall be transferred to the clean water fund 35 -45- LSB 5561YH (8) 86 da/rj 45/ 114
H.F. 2465 created in section 466B.51. 1 b. If a national assessment is imposed pursuant to section 2 183A.9A, moneys from the state assessment for clean water 3 collected by the Iowa pork producers association shall be 4 transferred to the clean water fund created in section 466B.51. 5 c. The Iowa pork producers association shall maintain 6 separate accounts for moneys collected from the national 7 assessment and the state assessment for clean water. 8 d. The Iowa pork producers association shall adopt rules 9 as necessary to administer this subsection and other sections 10 in this chapter which directly or indirectly relate to this 11 subsection. 12 Sec. 56. Section 183A.8, Code 2016, is amended to read as 13 follows: 14 183A.8 Refund of assessment the assessments . 15 1. A producer from whom the an assessment for direct use or 16 a state assessment for clean water has been deducted , upon is 17 entitled to receive a refund upon filing a written application 18 filed with the council within thirty days after its collection , 19 shall have that amount refunded by the council . 20 2. a. Application If an assessment for direct use or 21 an assessment for direct use and any state assessment for 22 clean water are imposed, application forms shall be given by 23 the council to each first purchaser when requested and the 24 first purchaser shall make the applications available to any 25 producer. 26 b. Each application for a refund by a producer shall have 27 attached a proof of assessment for direct use deducted. If 28 the assessment for direct use and state assessment for clean 29 water are imposed, the attached proof shall indicate the amount 30 of the assessment and the amount of the state assessment 31 deducted. The proof of the assessment for direct use and any 32 state assessment for clean water deducted shall be in the form 33 of the original or a copy of the purchase invoice by the first 34 purchaser. The application shall allow the applicant to elect 35 -46- LSB 5561YH (8) 86 da/rj 46/ 114
H.F. 2465 whether the refund is for the assessment for direct use or the 1 state assessment for clean water or both. The council shall