HF 378 (LSB 1333HH (10) 87)

HOUSE FILE 378

BY  ISENHART and ANDERSON

A BILL FOR

An Act providing for a state assessment for clean water imposed on agricultural commodities, including establishing procedures for referendums to establish, continue, or terminate the state assessment, the transfer of moneys to the department of agriculture and land stewardship, state sales and use taxes, the natural resources and outdoor recreation fund, the establishment of a commission and fund and the appropriation of moneys.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

DIVISION I
IOWA DAIRY INDUSTRY COMMISSION AND

IOWA STATE DAIRY ASSOCIATION

    Section 1.  Section 179.1, Code 2017, is amended by adding the following new subsections:
   NEW SUBSECTION.  01.  “Assessment” means an excise tax on the sale of milk which may include a state assessment for direct use and a state assessment for clean water.
   NEW SUBSECTION.  2A.  “Federal Act” means the Dairy Product Stabilization Act of 1983, 7 U.S.C. §4501 et seq.
   NEW SUBSECTION.  3A.  “National assessment” means an excise tax on the sale of milk imposed pursuant to the federal Act.
   NEW SUBSECTION.  10.  “Secretary” means the secretary of agriculture.
    Sec. 2.  Section 179.1, subsection 2, Code 2017, is amended to read as follows:
   2.  The term “commission” shall mean “Commission” means the Iowa dairy industry commission created in section 179.2.
    Sec. 3.  Section 179.2, subsections 4, 5, 6, and 7, Code 2017, are amended to read as follows:
   4.  a.  When a national promotional order is established by the United States department of agriculture pursuant to the Dairy Product Stabilization Act of 1983 federal Act, collection of the excise tax state assessment for direct use described in section 179.5 shall be suspended for the period in which the national order is in effect. The commission shall continue to operate thereafter for only the period of time necessary to pay refunds and disburse the funds moneys remaining in the dairy industry fund for the purposes enumerated in administering this chapter. Upon completion of these acts, the existence of the Iowa dairy industry commission shall be suspended. The secretary of agriculture shall certify the suspension of the commission as of a date certain to the Iowa dairy industry commission and the Iowa state dairy association. When the existence of the commission is suspended, the terms of office being served by individual commissioners shall terminate.
   b.  The establishment of a national promotional order shall not affect the imposition of a state assessment for clean water established pursuant to section 179.13A.
   5.  When the national promotional order expires, the period of suspension of the excise tax state assessment for direct use established in section 179.5 shall terminate and the secretary of agriculture shall take the steps necessary to collect that excise tax state assessment and otherwise fulfill the duties of the commission, except that of expending funds moneys collected under the excise tax that state assessment, until those duties can be resumed by the reactivated commission. When the national promotional order expires, the period of suspension of the commission shall terminate. The secretary of agriculture shall call the first meeting of the reactivated commission. Upon reactivation, the commission shall reimburse the secretary of agriculture for expenses incurred in carrying out the duties provided in this subsection.
   6.  When the national dairy promotion program expires and the suspension of the Iowa dairy industry commission terminates pursuant to subsection 5, all first purchasers shall, in a manner designed to reflect their proportionate contributions to the national dairy promotion program in its most recently completed fiscal year, nominate two resident producers for each of the sixteen offices of the commission. The secretary of agriculture shall then appoint one nominee from each set of two nominees as commissioners of the reactivated Iowa dairy industry commission. The secretary of agriculture shall stagger the terms of the reactivated commission resulting in as nearly as possible one third of the commissioners serving for one year, one third of the commissioners serving for two years, and one third of the commissioners serving for three years. After the initial staggering of terms by the secretary, commissioners shall be appointed to three-year terms.
   7.  The establishment or expiration of a national promotional order shall not affect the imposition of a state assessment for clean water established pursuant to section 179.13A.
   7.  8.  After the reactivated commission has been formed, nominations for commissioners shall be made by first purchasers in a manner designed to reflect their proportionate contributions to the Iowa dairy industry commission in its most recently completed fiscal year.
    Sec. 4.  Section 179.3, Code 2017, is amended by adding the following new subsection:
   NEW SUBSECTION.  10.  To cooperate with the division of soil conservation and water quality of the department of agriculture and land stewardship in transferring moneys collected from the state assessment for clean water to the clean water fund created in section 466B.51.
    Sec. 5.  Section 179.4, Code 2017, is amended to read as follows:
   179.4  Expenditure of funds Use of moneys.
   Funds collected through Moneys collected by the commission from the excise tax are to state assessment for direct use imposed pursuant to section 179.5 shall be used for purposes of advertising and promotion, product, process, and nutrition, dietetics, and physiology research, nutrition education, public relations, research and development, and for other activities that contribute to producer efficiency and productivity. In addition, the commission shall use these funds moneys to maintain existing markets, to make contributions to organizations working toward the purposes of this section, and to assist in the development of new or enlarged markets for milk, both domestic and foreign. The primary purpose for use of these funds moneys is to increase consumption of milk. The commission may contract for advertising, publicity, sales promotion, research, and educational services the committee commission deems appropriate to further the objectives of this section.
    Sec. 6.  Section 179.5, Code 2017, is amended to read as follows:
   179.5  Excise tax State assessments —— administration of moneys —— appropriation.
   1.  a.  There is levied and imposed an excise tax a state assessment for direct use on all producers within the state at a rate of three-fourths of one percent of the gross value of milk produced in the state and which may be continued by special referendum as provided in section 179.13A.
   b.  There is imposed a state assessment for clean water on all producers within the state at a rate established by the commission not to exceed the rate of the state assessment for direct use described in paragraph “a”, if the state assessment for clean water is established or continued pursuant to section 179.13A.
   2.  All taxes levied and The state assessment for direct use and the state assessment for clean water imposed under this chapter shall be deducted from the sales price received by the producer and shall be collected by the first purchaser, except as follows:
   a.  If the producer produces milk from cows and sells the milk directly to the consumer, the taxes each state assessment shall be remitted by that producer.
   b.  If the producer sells milk to a first purchaser outside the state, the taxes are each state assessment is due and payable by that producer before the shipment is made, except that the commission may make agreements with extra state purchasers for the keeping of records and the collection of the taxes each state assessment as necessary to secure the payment of the taxes each state assessment within the time fixed by this chapter.
   3.  All taxes levied and The state assessment for direct use and the state assessment for clean water if established and imposed under this chapter, and any other contributions made to the dairy industry commission, shall be paid to and collected by the commission within thirty days after the end of the month during which the milk was marketed.
   4.  The commission shall remit moneys collected from the taxes state assessment for direct use and any other contributions obtained by the commission to the treasurer of the state each quarter, and at the same time shall render to the director of the department of administrative services an itemized and verified report showing the source from which the taxes moneys collected from the state assessment for direct use and voluntary contributions were obtained. All taxes moneys collected from the state assessment for direct use and voluntary contributions received, collected, and remitted by the commission shall be placed in a special fund by the treasurer of state and the director of the department of administrative services, to be known as the “dairy industry fund” to be used by the Iowa dairy industry commission for the purposes set out in this chapter and to administer and enforce the laws relative to this chapter. The department of administrative services shall transfer moneys from the fund to the commission for deposit into an account established by the commission in a qualified financial institution. The department shall transfer the moneys as provided in a resolution adopted by the commission. However, the department is only required to transfer moneys once during each day and only during hours when the offices of the state are open. Moneys deposited in the fund and transferred to the commission as provided in this section are appropriated and shall be used for the purpose of carrying out the provisions of this chapter.
   5.  The commission may deposit moneys collected from the state assessment for clean water in a qualified financial institution until transferred to the clean water fund created in section 466B.51. During the period when a national promotional order is in effect, the Iowa state dairy association shall deposit the moneys collected from that state assessment in a qualified financial institution until transferred to the clean water fund. If the state assessment for clean water is terminated as provided in section 179.13A, the remaining moneys collected from that state assessment shall be immediately transferred to the clean water fund.
   6.  The commission may require that the invoice also show the total amount of any state assessment for direct use deducted from the sales price. If a national assessment is being collected, the Iowa state dairy association may require that the invoice for the national assessment also show the total amount of any national assessment, if permitted by federal law. If a state assessment for clean water is collected, the first purchaser shall furnish the producer at the time of payment an invoice showing the total amount of the state assessment for clean water deducted from the sales price.
   4.  7.  a.  A person from whom the excise tax provided in this chapter a state assessment for direct use is collected may, by application filed with the commission within thirty days after the collection of the tax state assessment, have the tax state assessment refunded to that person by the commission.
   b.  If a state assessment for direct use is imposed, a person from whom a state assessment for clean water is collected may file an application for a refund with the commission. The application for a refund shall allow the person to elect whether the refund is for the state assessment for direct use or the state assessment for clean water or both. The commission shall not approve an application unless the application indicates the election. The commission shall forward an approved application for a refund of the state assessment to the division of soil conservation and water quality for payment.
   c.  If a national assessment is imposed and a refund of the national assessment is authorized, a person from whom a state assessment for clean water is collected may file an application for a refund with the Iowa state dairy association. The application shall to the extent allowed by federal law allow the person to elect whether the refund is for the national assessment or the state assessment for clean water or both. The association shall forward the approved application for a refund of the state assessment for clean water to the division of soil conservation and water quality for payment.
    Sec. 7.  Section 179.6, Code 2017, is amended to read as follows:
   179.6  Records of producers, first purchasers.
   Every producer shipping milk to a first purchaser outside of Iowa who is not by agreement with the commission collecting the tax state assessment for direct use or the state assessment for clean water imposed by this chapter, and every first purchaser within the state, and every producer distributing milk directly to the consumer, shall keep a complete and accurate record of all milk produced or purchased by the person during the period for which an excise tax levy a state assessment is imposed under this chapter. The records shall be in the form and contain the information prescribed by the commission, shall be preserved by the person charged with their making for a period of two years, and shall be offered or submitted for inspection at any time upon written or oral request by the commission or its duly authorized agent or employee.
    Sec. 8.  Section 179.8, Code 2017, is amended to read as follows:
   179.8  Payment of expenses —— limitation.
   1.  No part of the expense incurred by the commission shall be paid out of moneys in the state treasury except moneys transferred to the commission from the dairy industry fund. Moneys transferred from the fund to the commission, as provided in section 179.5, shall be used for the payment of all salaries, and other expenses necessary, to carry out the provisions of this chapter. However, in no event shall the total expenses exceed the total taxes amount collected from the state assessment for direct use collected and transferred from the fund to the commission.
   2.  No more than five percent of the excise tax collected moneys collected from the state assessment for direct use and received by the commission pursuant to section 179.5 shall be utilized for administrative expenses of the commission.
    Sec. 9.  Section 179.9, Code 2017, is amended to read as follows:
   179.9  Investigations by commission.
   The commission shall have the power to cause its authorized agents to enter upon the premises of any person charged by this chapter or by agreement with the commission with the collection of the excise tax a state assessment for direct use or a state assessment for clean water imposed by this chapter, and to cause to be examined by any such agent any books, records, documents, or other instruments bearing upon the amount of moneys from such tax state assessment collected or to be collected by such person; provided that the commission has reasonable ground to believe that all moneys from the tax state assessments herein levied has imposed have not been collected, or if it has they have not been fully accounted for as herein provided.
    Sec. 10.  Section 179.10, Code 2017, is amended to read as follows:
   179.10  Report.
   The commission shall each year prepare and submit a report summarizing the activities of the commission under this chapter to the auditor of state and the secretary of agriculture. The report shall show all income, expenses, and other relevant information concerning fees the state assessment for direct use collected and expended under this chapter.  The report shall also show the collection and transfer of moneys received from any state assessment for clean water imposed under this chapter.
    Sec. 11.  Section 179.13, Code 2017, is amended to read as follows:
   179.13  Referendum Initial referendum.
   1.  a.  At a time designated by the commission within eighteen months after termination of the national promotional order made pursuant to the Dairy Product Stabilization federal Act of 1983, the commission shall conduct a an initial referendum under administrative procedures prescribed by the department.
   b.  Upon signing a statement certifying to the department that the person is a bona fide producer as defined in this chapter, each producer is entitled to one vote in each initial referendum. When the secretary is required to determine the approval or disapproval of producers under this section, the secretary shall consider the approval or disapproval of a cooperative association of producers, engaged in a bona fide manner in marketing milk, as the approval or disapproval of the producers who are members of or contract with the cooperative association of producers. If a cooperative association elects to vote on behalf of its members, the cooperative association shall provide each producer on whose behalf the cooperative association is expressing approval or disapproval with a description of the question presented in the initial referendum together with a statement of the manner in which the cooperative association intends to cast its vote on behalf of the membership. The information shall inform the producer of procedures to follow to cast an individual ballot if the producer chooses to do so within the period of time established by the secretary for casting ballots. The notification shall be made at least thirty days prior to the initial referendum and shall include an official ballot. The ballots shall be tabulated by the secretary and the vote of the cooperative association shall be adjusted to reflect the individual votes.
   c.  The department shall count and tabulate the ballots filed during the initial referendum within thirty days of the close of the initial referendum. If from the tabulation the department determines that a majority of the total number of producers voting in the initial referendum favors the proposal, the excise tax state assessment for direct use provided for in this chapter shall be continued. The ballots cast pursuant to this section constitute complete and conclusive evidence for use in determinations made by the department under this chapter.
   2.  The secretary may conduct a special referendum at any time after the Iowa dairy industry commission is reactivated, and shall hold a conduct a special referendum on request upon receiving a petition of a representative group comprising ten percent or more of the number of producers eligible to vote, to determine whether the producers favor the termination or suspension or termination of the excise tax state assessment for direct use. The secretary shall suspend or terminate collection of the excise tax within state assessment for direct use no later than six months after the secretary determines that suspension or termination of the excise tax state assessment is favored by a majority of the producers voting in the special referendum, and shall suspend or terminate the excise tax state assessment in an orderly manner as soon as practicable after the determination.
    Sec. 12.  NEW SECTION.  179.13A  Referendums and special questions —— establishment, increase, or termination of a state assessment.
   1.  a.  If a state assessment for direct use is established, and upon receipt of a petition of producers that otherwise complies with requirements to conduct an initial referendum under section 179.13, subsection 1, the secretary shall conduct a special referendum to determine whether to establish a state assessment for clean water.
   b.  Upon receipt of a petition of producers that otherwise complies with requirements to conduct an initial referendum under section 179.13, the secretary shall include as part of the initial referendum conducted pursuant to section 179.13, subsection 1, a separate special question whether to establish a state assessment for clean water, if the secretary determines the inclusion of the special question is cost-effective or the petition demands inclusion.
   c.  The secretary shall conduct the special referendum under this subsection or include the special question as part of an initial or special referendum conducted under section 179.13, subsection 1, in consultation with the commission and which may be based on the same procedures for conducting an initial referendum under section 179.13.
   d.  If the secretary determines that the establishment of a state assessment for clean water is favored by a majority of the producers voting in a special referendum under this subsection or in an initial referendum conducted under section 179.13, subsection 1, that includes a special question as provided in paragraph “b”, the state assessment shall commence on a date determined by the secretary after consultation with the commission but not later than six months after the date that the special or initial referendum was conducted.
   2.  a.  If a national assessment is being collected, and upon receipt of a petition of producers that otherwise complies with requirements to conduct an initial referendum under section 179.13, subsection 1, the secretary shall conduct a special referendum to determine whether to establish a state assessment for clean water. 
   b.  Upon receipt of a petition of producers that otherwise complies with requirements to conduct an initial referendum under section 179.13, subsection 1, the secretary shall include as part of the referendum to establish a national assessment, a separate special question whether to establish a state assessment for clean water, if the secretary determines the inclusion of the special question complies with federal law and either is cost-effective or the petition demands inclusion.
   c.  The secretary shall conduct the special referendum under this subsection or include the special question as part of a referendum to establish a national referendum in consultation with the Iowa state dairy association and which may be based on the same procedures for conducting an initial referendum under section 179.13, subsection 1, or a referendum to establish a national assessment.
   d.  If the secretary determines that the establishment of a state assessment for clean water is favored by a majority of the producers voting in a special referendum conducted under paragraph “a” or a referendum to establish a national assessment that includes a special question as provided in paragraph “b”, the state assessment shall commence on a date determined by the secretary after consultation with the Iowa state dairy association but not later than six months after the date that the special referendum or referendum establishing a national assessment was conducted.
   3.  a.  If the rate of the national assessment has been increased, and upon receipt of a petition of producers that otherwise complies with requirements to conduct an initial referendum under section 179.13, subsection 1, the secretary shall conduct a special referendum to determine whether to increase the rate of the state assessment for clean water to a rate established by the Iowa state dairy association not to exceed the rate of the national assessment.
   b.  Upon receipt of a petition of producers that otherwise complies with requirements to conduct an initial referendum under section 179.13, subsection 1, the secretary shall include as part of a referendum to increase the rate of the national assessment, a separate special question whether to increase the rate of the state assessment for clean water at a rate established by the Iowa state dairy association not to exceed the increase in the national assessment, if the secretary determines the inclusion of the special question complies with federal law and is either cost-effective or the petition demands inclusion.
   c.  The secretary shall conduct the special referendum under this subsection, or include the special question as part of a referendum to increase the national assessment, in consultation with the Iowa state dairy association and which may be based on the same procedures for conducting an initial referendum under section 179.13, subsection 1, or a referendum to increase the rate of the national assessment.
   d.  If the national assessment is increased, and the secretary determines that an increase in the state assessment for clean water is favored by a majority of the producers voting in a special referendum or referendum to increase the rate of the national assessment, the rate of the state assessment shall be increased on a date determined by the secretary after consultation with the Iowa state dairy association but not later than six months after the date that the special referendum or referendum establishing a national assessment was conducted. If a special referendum or special question to increase the rate of the state assessment for clean water does not pass, the result of the vote shall not affect the existence or length of the period when the state assessment is in effect.
   4.  a.  If a state assessment for direct use is imposed, and upon receipt of a petition of producers that otherwise complies with requirements to conduct a special referendum under section 179.13, subsection 2, the secretary shall conduct a special referendum to determine whether to terminate the state assessment for clean water.
   b.  Upon receipt of a petition of producers that otherwise complies with requirements to conduct a special referendum under section 179.13, subsection 2, the secretary shall include as part of a special referendum to suspend or terminate the state assessment for direct use conducted pursuant to section 179.13, subsection 2, a separate special question whether to terminate the state assessment for clean water, if the secretary determines the inclusion of the special question is cost-effective or the petition demands inclusion.
   c.  The secretary shall conduct the special referendum under this subsection or include the special question as part of a special referendum conducted under section 179.13, subsection 2, in consultation with the commission and which may be based on the same procedures for conducting a special referendum under section 179.13, subsection 2.
   d.  If the secretary determines that the termination of a state assessment for clean water is favored by a majority of the producers voting in a special referendum under this subsection, or a special referendum conducted under section 179.13, subsection 2, the state assessment shall terminate on a date determined by the secretary after consultation with the commission but not later than six months after the date that the special or initial referendum was conducted. The secretary shall terminate the state assessment in an orderly manner as soon as practical. 
   5.  The secretary shall terminate the state assessment for clean water upon determining that the state assessment for direct use and the national assessment are terminated. The secretary shall terminate the state assessment for clean water in an orderly manner as soon as practical. 
DIVISION II
IOWA BEEF CATTLE PRODUCERS ASSOCIATION —— EXECUTIVE COMMITTEE

    Sec. 13.  Section 181.1, subsection 10, Code 2017, is amended to read as follows:
   10.  “State assessment” means an excise tax on the sale of cattle imposed pursuant to this chapter which may include a state assessment for direct use and a state assessment for clean water.
    Sec. 14.  Section 181.2, Code 2017, is amended by adding the following new subsection:
   NEW SUBSECTION.  5.  Cooperate with the division of soil conservation and water quality of the department of agriculture and land stewardship in transferring moneys collected from the state assessment for clean water to the clean water fund created in section 466B.51 and for being reimbursed for reasonable expenses incurred in conducting an initial or special referendum to establish, continue, or terminate a state assessment for clean water.
    Sec. 15.  Section 181.7A, Code 2017, is amended to read as follows:
   181.7A  Commencement of federal assessment —— suspension and recommencement of state assessment —— rate.
   1.  Prior to the commencement of the collection of the federal assessment, the executive committee may seek certification as a qualified state beef council within the meaning of the federal Act.
   2.  The executive committee shall suspend the state assessment for direct use upon collection of the federal assessment. The state assessment for direct use shall recommence upon the earlier of the following:
   a.  The noncollection of the federal assessment. The recommenced state assessment for direct use shall be imposed for a four-year period. Its effective date shall be the first date for which the federal assessment is not collected.
   b.  The passage of a special referendum pursuant to section 181.19 regardless of whether a federal assessment is being collected.
   3.  The rate of the recommenced state assessment shall be the same as the rate that was last in effect under section 181.19 immediately prior to the suspension of the state assessment.
   4.  The state assessment for clean water shall continue to be imposed during any period of suspension of the state assessment for direct use so long as the state assessment for clean water is not terminated pursuant to section 181.19A.
    Sec. 16.  Section 181.8, Code 2017, is amended to read as follows:
   181.8  Executive committee —— entering premises —— examining records.
   The executive committee may authorize its agents to enter at a reasonable time upon the premises of any purchaser charged by this chapter with remitting the a state assessment for direct use or a state assessment for clean water to the executive committee, and to. The agents may examine records and other instruments relating to the collection of the a state assessment. However, the executive committee must first have reasonable grounds to believe that the a state assessment has not been remitted or fully accounted for.
    Sec. 17.  Section 181.11, Code 2017, is amended to read as follows:
   181.11  Collection of state assessment assessments.
   1.  A state assessment for direct use or a state assessment for clean water imposed as provided in this chapter shall be levied and collected from the purchaser on each sale of cattle at a rate provided in this chapter. The state assessment for direct use or a state assessment for clean water shall be imposed on any person selling cattle and shall be deducted by the purchaser from the price paid to the seller. The purchaser, at the time of the sale, shall make and deliver to the seller a separate invoice for each sale showing the names and addresses of the seller and the purchaser, the number of cattle sold, and the date of sale. The purchaser shall forward the state assessment for direct use and any state assessment for clean water to the executive committee at a time prescribed by the executive committee, but not later than the last day of the month following the end of the prior reporting period in which the cattle are sold.
   2.  The executive committee may enter into arrangements with persons purchasing cattle outside of this state for remitting the state assessment for direct use and any state assessment for clean water by such purchasers.
    Sec. 18.  Section 181.12, Code 2017, is amended to read as follows:
   181.12  Remission of state assessment assessments on application.
   1.  a.  A person from whom a state assessment for direct use is collected may, by written application filed with the executive committee within ninety days after its collection, have the amount remitted to the person by the executive committee.
   b.  A person from whom a state assessment for clean water is collected may, by written application filed with the council as provided in paragraph “a”, have the amount remitted to the person by the division of soil conservation and water quality of the department of agriculture and land stewardship. Within sixty days after its collection, the council shall transmit any approved application to the division for a refund payment.
   2.  The information that the a state assessment described in subsection 1 is refundable and the address of the executive committee to which application for a refund may be made shall appear on the invoice of sale form supplied by the purchaser to the producer near the area on the form which shows the amount of the state assessment paid.
   3.  a.  The executive committee shall furnish uniform application for refund forms and make the refund forms readily available to all producers.
   b.  The form shall allow the applicant to elect whether the refund is for the state assessment for direct use or the state assessment for clean water or both. The council shall not approve an application unless the application indicates the election.  A purchaser charged by this chapter with remitting the a state assessment shall make the forms readily available to all producers.
    Sec. 19.  Section 181.13, Code 2017, is amended to read as follows:
   181.13  Administration of moneys originating from state assessment assessments —— appropriation.
   1.  a.  All moneys, other than moneys from the state assessments assessment for clean water imposed under this chapter shall be paid to and collected by the executive committee and deposited with the treasurer of state in a separate cattle promotion fund which shall be created by the treasurer of state. The department of administrative services shall transfer moneys from the fund to the executive committee for deposit into an account established by the executive committee in a qualified financial institution. The department shall transfer the moneys as provided in a resolution adopted by the executive committee. However, the department is only required to transfer moneys once during each day and only during hours when the offices of the state are open. From the moneys, other than moneys from the state assessment for clean water, collected, deposited, and transferred to the executive committee, in accordance with the provisions of this chapter, the executive committee shall first pay the costs of referendums held pursuant to this chapter, the costs of collection of such state assessments, and the expenses of its agents. At least ten percent of the remaining moneys shall be remitted to the association in proportions determined by the executive committee, for use in a manner not inconsistent with section 181.7. The remaining moneys, with approval of a majority of the executive committee, shall be expended as the executive committee finds necessary to carry out the provisions and purposes of this chapter. However, in no event shall the total expenses exceed the total amount transferred from the fund for use by the executive committee.
   2.  b.  All moneys deposited in the cattle promotion fund and transferred to the executive committee pursuant to this section are appropriated and shall be used for the administration of this chapter and for the payment of claims based upon obligations incurred in the performance of activities and functions set forth in this chapter.
   3.  c.  If the state assessment for direct use is suspended as provided in section 181.7A or a continuance special referendum to continue the state assessment for clean water fails to pass as provided in section 181.19A, moneys remaining in the cattle promotion fund and transferred to the executive committee shall continue to be transferred and expended in accordance with the provisions of this chapter until exhausted.
   2.  a.  All moneys collected from the state assessment for clean water imposed under this chapter shall be paid to and collected by the executive committee and may be deposited in a qualified financial institution until transferred to the clean water fund created in section 466B.51. If the state assessment for clean water is terminated as provided in section 181.19A, the remaining moneys collected from that state assessment shall be immediately transferred to the clean water fund.
   b.  Except as otherwise expressly provided in this chapter, moneys collected from the state assessment for clean water shall not be used for any purpose other than to be transferred to the clean water fund created in section 466B.51.
    Sec. 20.  Section 181.19, Code 2017, is amended to read as follows:
   181.19  Initial and special referendums.
   1.  The secretary shall, upon the petition of five hundred producers, conduct an initial referendum to determine whether a state assessment for direct use is to be established. If established, the state assessment for direct use shall be imposed, at a rate established by the executive committee not to exceed one dollar per head on all cattle sold for any purpose.
   2.  The secretary shall, upon the petition of five hundred producers, conduct a special referendum to do any of the following:
   a.  Determine whether a state assessment for direct use already imposed shall be increased to a rate, established by the executive committee, not to exceed one dollar per head on all cattle sold for any purpose.
   b.  Determine whether a state assessment for direct use suspended pursuant to section 181.7A is to be in addition to a federal assessment. The state assessment for direct use shall be imposed at a rate not to exceed one dollar per head on all cattle sold for whatever purpose.
   3.  a.  Upon receipt of a petition that otherwise complies with the requirements of subsection 1, the secretary shall conduct a special referendum to establish a state assessment for clean water to be imposed in the same manner as a state assessment for direct use.
   b.  The rate of the state assessment for clean water shall be established by the executive committee not to exceed the rate of the state assessment for direct use in effect on the date that the special referendum to impose a state assessment for clean water passes. However, if a federal assessment is imposed, the rate of the state assessment for clean water shall be established by the executive committee not to exceed the rate of the federal assessment. If a state assessment for direct use and a federal assessment are both being imposed, the rate of the state assessment for clean water shall be established by the executive committee not to exceed the rate of the state assessment for direct use plus the rate of the federal assessment.
   4.  Upon receipt of a petition that otherwise complies with the requirements of subsection 1, the secretary shall include as part of the initial referendum a separate special question whether to establish a state assessment for clean water as described in subsection 3, if the secretary determines the inclusion of the special question is cost-effective or the petition demands inclusion.
   5.  a.  Upon receipt of a petition that otherwise complies with the requirements of subsection 2, the secretary shall conduct a special referendum to change the rate of the state assessment for clean water to be established by the executive committee not to exceed the rate of the state assessment for direct use and any federal assessment as described in subsection 2.
   b.  Upon receipt of a petition that otherwise complies with the requirements of subsection 2, the secretary shall include as part of the special referendum conducted under subsection 2 a separate special question whether to change the rate of the state assessment for clean water to be established by the executive committee not to exceed the rate of the state assessment for direct use and any federal assessment as described in subsection 2, if the secretary determines the inclusion of the special question is cost-effective or the petition demands inclusion.
   6.  a.  If a an initial referendum or a special referendum described in this section passes, the secretary shall establish an effective date to commence the state assessment for direct use or the change in the rate of the state assessment for direct use. However, the state assessment or the change in the rate of the state assessment must be commenced within ninety days from the date that the secretary determines that the referendum has passed.
   b.  If a state assessment for clean water is established or the rate of the state assessment for clean water changes under this section, the secretary shall establish an effective date to commence the state assessment or change the rate of the state assessment in the same manner as provided in paragraph “a”.
   4.  7.  a.  If a special referendum to increase the rate of the state assessment for direct use does not pass, the result of the special referendum shall not affect the existence or length of the state assessment that is in effect on the date that the special referendum was conducted.
   b.  If a special referendum, or a separate special question that is part of a special referendum conducted under this section, to change the rate of the state assessment for clean water does not pass, the result of the vote shall not affect the existence or period that the state assessment is in effect.
   8.  A state assessment for clean water is terminated on the date that the state assessment for direct use is terminated, unless a federal assessment is imposed.
    Sec. 21.  Section 181.19A, Code 2017, is amended to read as follows:
   181.19A  Continuance referendum Special referendums —— continuance or termination.
   1.  The secretary shall, upon the receipt of a petition of producers, conduct a continuance special referendum to determine whether a state assessment for direct use established in section 181.19 should be renewed continued. The secretary must receive the petition not less than one hundred fifty and not more than two hundred forty days before the four-year anniversary of a state assessment’s the effective date of the state assessment for direct use. The petition must be signed within that period by a number of producers equal to or greater than two percent of the number of producers in this state reported in the most recent United States census of agriculture, requesting a special referendum to determine whether to continue the state assessment for direct use. The special referendum shall be conducted not earlier than thirty days before the four-year anniversary date of the state assessment for direct use.
   2.  a.  The secretary shall, upon receipt of a petition of producers otherwise complying with the requirements of subsection 1, conduct a special referendum to determine whether the state assessment for clean water established in section 181.19 should be continued. The special referendum shall be conducted in the same manner as a special referendum conducted under subsection 1.
   b.  The secretary shall, upon receipt of a petition complying with the requirements of subsection 1, include as part of a special referendum provided in subsection 1 a separate special question whether a state assessment for clean water should be continued, if the secretary determines the inclusion of the separate special question is cost-effective or the petition demands inclusion.
   2.  3.  a.  If the secretary determines that a continuance special referendum has passed under subsection 1, the state assessment for direct use shall continue in effect for four additional years from the anniversary of its effective date.
   b.  If the secretary determines that a special referendum or special question to continue the state assessment for clean water has passed under subsection 2, the state assessment shall be in effect until the anniversary of the effective date of the state assessment for direct use described in paragraph “a”.
   3.  4.  a.  If the secretary determines that the a special referendum to continue the state assessment for direct use has not passed, the secretary and the executive committee shall terminate the state assessment in an orderly manner as soon as practicable after the determination.
   b.  If the secretary determines that a special referendum to continue the state assessment for clean water has not passed, the secretary and the executive committee shall terminate the state assessment in the same manner as described in paragraph “a”.
   c.  A state assessment for clean water is terminated on the date that the state assessment for direct use is terminated, unless a federal assessment is imposed.
   5.  a.  Another If the secretary determines that a special referendum to continue the state assessment for direct use has not passed, another initial referendum conducted under section 181.19 to determine whether to establish a state assessment for direct use shall not be held conducted for at least one hundred eighty days from the date that the state assessment is terminated.
   b.  If the secretary determines that a special referendum to continue the state assessment for clean water has not passed, another special referendum to establish the state assessment or another initial or special referendum that includes a separate special question to establish the state assessment shall not be conducted for at least one hundred eighty days from the date that the state assessment was terminated.
   4.  6.  If no a valid petition for a continuance referendum provided in this section is not received by the secretary within the time period provided in this section, the state assessment for direct use or the state assessment for clean water shall continue in effect for four additional years from the anniversary of its the effective date of the initial referendum establishing the state assessment for direct use.
DIVISION III
IOWA SHEEP AND WOOL PROMOTION BOARD

    Sec. 22.  Section 182.1, subsection 1, Code 2017, is amended to read as follows:
   1.  “Assessment” means an excise tax on the sale of sheep or wool as provided in this chapter which may include an assessment for direct use and a state assessment for clean water.
    Sec. 23.  Section 182.1, Code 2017, is amended by adding the following new subsection:
   NEW SUBSECTION.  6A.  “Qualified financial institution” means a bank or credit union as defined in section 12C.1.
    Sec. 24.  Section 182.2, Code 2017, is amended to read as follows:
   182.2  Petition for initial referendum election.
   Upon receipt of a petition signed by at least fifty producers in each district requesting a an initial referendum by election to determine whether to establish the board and to impose an assessment for direct use, the secretary shall call a the initial referendum to be conducted within sixty days following receipt of the petition.
    Sec. 25.  Section 182.3, Code 2017, is amended to read as follows:
   182.3  Notice of initial referendum.
   The secretary shall give notice of the initial referendum on the question of whether to establish an Iowa sheep and wool promotion board and to impose the an assessment for direct use by publishing the notice for a period of not less than five days in at least one newspaper of general circulation in the state. The notice shall state the voting places, period of time for voting, and other information deemed necessary by the secretary.
   A An initial referendum shall not be commenced until five days after the last date of publication.
    Sec. 26.  Section 182.4, Code 2017, is amended to read as follows:
   182.4  Establishment of sheep and wool promotion board —— assessment assessments —— termination.
   1.  Each producer who signs a statement certifying that the producer is a bona fide producer is entitled to one vote in an initial referendum conducted under this section. At the close of the initial referendum, the secretary shall count and tabulate the ballots cast. If a majority of voters favor establishing an Iowa sheep and wool promotion board and imposing establishing an assessment for direct use, an Iowa sheep and wool promotion the board and assessment shall be established. The assessment for direct use shall be imposed commencing not more than sixty days following the initial referendum as determined by the Iowa sheep and wool promotion board, and shall continue until the board and assessment for direct use are terminated by a special referendum as provided in conducted pursuant to subsection 2 4.
   2.  a.  If the board is in existence, and upon receipt of a petition signed by at least twenty-five producers in each district requesting a special referendum to determine whether to establish a state assessment for clean water, the secretary shall call the special referendum to be conducted in the same manner as provided in subsection 1.
   b.  If a board is not in existence, and upon receipt of a petition that complies with the requirements of paragraph “a” the secretary shall include as part of the initial referendum a separate special question whether to establish a state assessment for clean water, if the secretary determines the inclusion of the special question is cost-effective or the petition demands inclusion.
   c.  If a majority of voters favor establishing the state assessment for clean water, the state assessment shall be imposed in the same manner and for the same period as the assessment for direct use described in subsection 1.
   3.  a.  If a majority of the voters do not favor establishing an Iowa sheep and wool promotion a board and imposing the an assessment for direct use, the board and an assessment shall not be established, and the assessment shall not be imposed and the board shall not be established until another initial referendum is held conducted under this chapter and a majority of the voters favor establishing a board and imposing the an assessment. If a an initial referendum fails, another initial referendum shall not be held within conducted for at least one hundred eighty days from the date of the last initial referendum.
   b.  If a majority of the voters do not favor establishing a state assessment for clean water, the state assessment shall not be established until another special referendum, or another separate special question that is part of an initial referendum, is conducted under this chapter and a majority of the voters favor establishing the state assessment. If a special referendum or special question fails, another special referendum or initial referendum which includes a special question shall not be conducted within one hundred eighty days from the date that the last such special referendum or initial referendum was conducted.
   2.  4.  Upon receipt of a petition signed by at least twenty-five producers in each district requesting a special referendum election to determine whether to terminate the establishment of the Iowa sheep and wool promotion board and to terminate the imposition of the and the assessment for direct use, the secretary shall call a special referendum to be conducted within sixty days following the receipt of the petition. The petitioners shall guarantee the payment of the costs of a the special referendum held conducted under this subsection. If the majority of the voters of a voting at the special referendum do not favor termination, an additional special referendum may be held conducted when the secretary receives a petition signed by at least twenty-five producers in each district. However, the additional referendum shall not be held within conducted for at least one hundred eighty days from the date of the last such special referendum.
   5.  a.  Upon receipt of a petition that otherwise complies with the requirements of subsection 4 requesting a special referendum election to determine whether to terminate the establishment of the state assessment for clean water, the secretary shall call a special referendum to be conducted in the same manner as provided in subsection 4.
   b.  Upon receipt of a petition that otherwise complies with the requirements of subsection 4, the secretary shall include as part of the special referendum conducted under that subsection a separate special question whether to terminate the state assessment for clean water, if the secretary determines the inclusion of the special question is cost-effective or the petition demands inclusion.
   c.  The petitioners shall guarantee the payment of the costs of the special referendum conducted under this subsection.
   d.  If the majority of the voters of a special referendum conducted under this subsection do not favor termination, an additional special referendum may be conducted when the secretary receives a petition complying with the same requirements as described in this subsection. However, the additional special referendum shall not be conducted for at least one hundred eighty days from the date of the last such special referendum.
   6.  A state assessment for clean water is terminated on the date that the assessment for direct use is terminated. The secretary shall terminate the state assessment in an orderly manner as soon as practical.
    Sec. 27.  Section 182.11, Code 2017, is amended to read as follows:
   182.11  Purposes of board.
   1.  The purposes of the board shall be to:
   1.  a.  Enter into contracts or agreements with or make grants to recognized and qualified agencies, individuals, or organizations for the development and carrying out of research and education programs directed toward better and more efficient production, marketing, and utilization of sheep and wool and their products.
   2.  b.  Provide methods and means, including, but not limited to, public relations and other promotion techniques for the maintenance of present markets.
   3.  c.  Assist in development of new or larger markets, both domestic and foreign, for sheep and wool and their products.
   2.  The board shall cooperate with the division of soil conservation and water quality of the department of agriculture and land stewardship in doing all of the following:
   a.  Transferring moneys collected from the state assessment for clean water to the clean water fund created in section 466B.51.
   b.  Being reimbursed for reasonable expenses incurred in conducting an initial or special referendum to establish, continue, or terminate a state assessment for clean water.
    Sec. 28.  Section 182.13, Code 2017, is amended to read as follows:
   182.13  Compensation —— meetings.
   Members of the board may receive payment for their actual expenses and travel in performing official board functions. Payment shall be made from amounts collected from the assessment for direct use. No A member of the board shall not be a salaried employee of the board or any organization or agency receiving funds moneys collected from the board. The board shall meet at least once every three months, and at other times it deems necessary.
    Sec. 29.  Section 182.13B, Code 2017, is amended to read as follows:
   182.13B  Assessment rate rates.
   1.  a.  If a majority of voters voting at a an initial referendum conducted pursuant to section 182.4 approve the establishment of an Iowa sheep and wool promotion the board and the imposition of an assessment for direct use, the assessment shall be imposed on wool and sheep at the following rates: 
   a.  (1)  For wool, two cents imposed on each pound of wool sold by a producer.
   b.  (2)  For sheep, ten cents imposed on each head of sheep sold by a producer.
   b.  If a majority of voters voting at a special referendum conducted pursuant to section 182.4 approve the establishment of a state assessment for clean water, the state assessment shall be imposed on wool and sheep at the rates established by board resolution not to exceed the rates described in paragraph “a”.
   2.  a.  Notwithstanding subsection 1, upon a resolution adopted by the board, the secretary shall call a special referendum for voters to authorize increasing the assessment rate of the assessment for direct use imposed on sheep as provided in this section or increasing the assessment for direct use imposed on sheep as provided in this section.
   b.  Notwithstanding subsection 1, upon a resolution adopted by the board, the secretary shall call a special referendum for voters to authorize increasing the rate of the state assessment for clean water imposed on sheep as provided in this section. The secretary shall include as part of the special referendum to increase the rate of the assessment for direct use a separate special question whether to increase the rate of the state assessment for clean water, if the secretary determines the inclusion of the special question is cost-effective or the resolution demands inclusion.
   b.  c.  The special referendum to increase the rate of the assessment for direct use or to increase the rate of the state assessment for clean water shall be conducted in the same manner as a an initial referendum conducted upon receipt of a petition as provided in this chapter section 182.4, unless otherwise provided in the board’s resolution. Only producers are eligible to vote in an election the special referendum and each producer is entitled to one vote.
   3.  a.  The special referendum to increase the rate of the assessment for direct use conducted pursuant to subsection 2 shall allow a voter to cast a ballot for the following two questions:
   a.  (1)  For the first question, whether to authorize an increase in the rate of assessment rate for direct use to twenty-five cents imposed on each head of sheep. 
   b.  (2)  For the second question, if the first question is approved by a majority of voters, whether to also authorize the board to increase that assessment the rate of the assessment for direct use by future resolution as provided in this section.
   b.  The special referendum to increase the rate of the state assessment for clean water shall be conducted in the same manner as described in subsection 3 and shall allow a voter to cast a ballot for the following two questions:
   (1)  For the first question, whether to authorize an increase in the rate of state assessment for clean water to a rate established by board resolution not to exceed the increased rate of assessment for direct use described in subsection 3, paragraph “a”, subparagraph (1).
   (2)  For the second question, if the first question is approved by a majority of voters, whether to also authorize the board to increase that rate of state assessment for clean water by future resolution as provided in subsection 3, paragraph “a”, subparagraph (2).
   c.  A state assessment for clean water shall not be effective if the state assessment exceeds the assessment for direct use.
   4.  a.  If a majority of voters approve the first question to increase the rate of the assessment for direct use as described in subsection 3, paragraph “a”, subparagraph (1), twenty-five cents shall be imposed on each head of sheep sold by a producer as effectuated by the board pursuant to section 182.12.
   b.  If a majority of voters also approve increasing the rate of the state assessment for clean water as described in subsection 3, paragraph “b”, subparagraph (1), the increased rate shall be imposed on each head of sheep sold by a producer as effectuated by the board pursuant to section 182.12.
   5.  a.  If a majority of voters approve both the first and second questions to increase the rate of the assessment for direct use under subsection 3, paragraph “a”, subparagraphs (1) and (2), all of the following apply:
   a. (1)  Twenty-five The rate of the assessment for direct use shall equal twenty-five cents shall be imposed on each head of sheep sold by a producer as effectuated by the board pursuant to section 182.12. 
   b. (2)  The board may adopt one or more resolutions to further impose an increased rate of assessment rate for direct use.
   b.  If a majority of voters also approve increasing the rate of state assessment for clean water as described in subsection 3, paragraph “b”, subparagraphs (1) and (2), all of the following shall apply:
   (1)  The rate of the state assessment for clean water shall equal the increase described in subsection 3, paragraph “b”, subparagraph (1), imposed on each head of sheep sold by a producer.
   (2)  The board may adopt one or more resolutions to further impose an increased rate of state assessment for clean water so long as the rate does not exceed the rate of the assessment for direct use.
   c.  The increased assessment rate of the assessment for direct use or the increased rate of the state assessment for clean water shall be imposed on each head of sheep sold by a producer as effectuated by the board pursuant to section 182.12. The board shall comply with all of the following:
   (1)  The board must wait three or more years from the effective date of the previous action imposing an increase in the rate of the assessment for direct use in order to adopt a resolution. For the first increase, the effective date is the date of the special referendum to increase the rate of the assessment. For any subsequent increase in the rate of assessment, the effective date is the date that the board last adopted a resolution imposing an increased rate as provided in this paragraph “b” subsection.
   (2)  The board must wait three or more years from the effective date of the previous action imposing an increase in the rate of the state assessment for clean water in order to adopt a resolution. For the first increase, the effective date is the date of the special referendum to increase the rate of the state assessment for clean water. For any subsequent increase, the effective date is the date that the board last adopted a resolution imposing an increased rate as provided in this subsection.
   (2)  (3)  The board shall not adopt a resolution until it provides notice to producers of the proposed increase in the assessment for direct use or the state assessment for clean water and an opportunity for producers to submit written or oral comments to the board regarding the proposed increase. The board may provide notice by publication in the same manner as provided in section 182.3, publication on its internet site, mail bearing a United States postal service postmark, electronic transmission, or hand-delivery.
   (3)  (4)  (a)  The An increase in the assessment rate of the assessment for direct use imposed by a resolution adopted by the board must shall equal five cents. However, the assessment rate of the assessment for direct use imposed by a resolution of the board shall not equal more than fifty cents. 
   (b)  An increase in the rate of the state assessment for clean water imposed by resolution adopted by the board shall equal five cents. However, the rate of the state assessment for clean water imposed by resolution of the board shall not equal more than fifty cents.
   6.  a.  If a majority of voters do not authorize increasing the rate of the assessment rate for direct use pursuant to a special referendum conducted pursuant to under this section, the assessment rate for the assessment for direct use shall be the same as provided in subsection 1, paragraph “a”.
   b.  If a majority of voters do not authorize increasing the rate of the assessment for direct use pursuant to a special referendum conducted under this section, the rate for the state assessment for clean water shall be the same as provided in subsection 1, paragraph “b”.
   b.  7.  Not more than one special referendum to establish an assessment for direct use or to establish a state assessment for clean water shall be conducted pursuant to this section.
    Sec. 30.  Section 182.14, Code 2017, is amended to read as follows:
   182.14  Assessment Assessments.
   1.  An assessment for direct use or a state assessment for clean water provided in this chapter shall be imposed on the producer as follows:
   a.  If the producer sells wool or sheep to the first purchaser within this state, the following shall apply:
   (1)  If the sale occurs at a concentration point, the assessment shall be imposed at the time of delivery. The first purchaser shall deduct the assessment or state assessment from the price paid to the producer at the time of sale.
   (2)  If the sale does not occur at a concentration point, the producer shall deduct the assessment or state assessment from the amount received from the sale and shall forward the amount deducted to the board within thirty days following each calendar quarter.
   b.  If the producer sells, ships, or otherwise disposes of wool or sheep to any person outside this state, the producer shall deduct the assessment or state assessment from the amount received from the sale and shall forward the amount deducted to the board.
   2.  The assessment for direct use or the state assessment for clean water imposed by this section shall be remitted to the board not later than thirty days following each calendar quarter during which the assessment amount or state assessment amount was deducted.
    Sec. 31.  Section 182.15, subsection 1, paragraph e, Code 2017, is amended to read as follows:
   e.  The rate of withholding and the total amount of the assessment for direct use and the state assessment for clean water withheld.  The board may require the invoice to separately indicate the amount withheld for the assessment for direct use and the state assessment for clean water.
    Sec. 32.  Section 182.16, Code 2017, is amended to read as follows:
   182.16  Deposit and disbursement Administration of funds moneys.
   1.  The board shall deposit amounts moneys collected from the assessment for direct use imposed pursuant to section 182.14 in an account established pursuant to section 182.12. Expenses and disbursements incurred and made pursuant to this chapter shall be made by voucher, draft, or check bearing the signature of a person designated by majority vote of the board.
   2.  a.  The board may deposit moneys collected from the state assessment for clean water in a qualified financial institution until transferred to the clean water fund created in section 466B.51.
   b.  If the state assessment for clean water is terminated as provided in section 182.4, the remaining moneys collected from that state assessment shall be immediately transferred to the clean water fund.
    Sec. 33.  Section 182.17, Code 2017, is amended to read as follows:
   182.17  Refunds.
   1.  a.  A producer who has paid the assessment for direct use may, by application in writing to the board, secure a refund of all or part of the amount paid to the board.
   b.  A producer who has paid the state assessment for clean water to the board may, by application in writing to the board, secure a refund of all or part of the amount paid to the board. The board shall transmit any approved application for a refund to the division of soil conservation and water quality of the department of agriculture and land stewardship for payment.
   2.  The refund shall be payable only when the application has been made to the board within sixty days after the deduction has been made by the producer or within sixty days after the remittance has been made by the first purchaser.
   3.  Each application for refund by a producer shall have an attached proof indicating that the assessment for direct use was paid.  If a state assessment for clean water is imposed, the attached proof shall also indicate that the state assessment has also been paid. The attached proof of the assessment paid may be in the form of a duplicate or certified copy of the purchase invoice by the purchaser.
   4.  The application shall allow the applicant to elect whether the refund is for the assessment for direct use or the state assessment for clean water or both. The board shall not approve an application unless the application indicates the election.
    Sec. 34.  Section 182.18, Code 2017, is amended to read as follows:
   182.18  Use of moneys.
   1.  Moneys from the assessment for direct use collected under this chapter are subject to audit by the auditor of state and shall be used by the Iowa sheep and wool promotion board first for the payment of collection and refund expenses, second for payment of the costs and expenses arising in connection with conducting referendums, third for the purposes identified in section 182.11, and fourth for the cost of audits for the auditor of state. Moneys of the board remaining after a special referendum is held at which a majority of the voters favor termination of the board and the assessment for direct use shall continue to be expended in accordance with this chapter until exhausted. The auditor of state may seek reimbursement for the cost of the audit.
   2.  Except as expressly provided in this chapter, moneys collected by the board from the state assessment for clean water shall not be used for any purpose other than to be transferred to the clean water fund created in section 466B.51.
   2.  3.  The board shall not engage in any political activity, and it shall be a condition of any allocation of funds that any organization receiving funds shall not expend the funds on political activity or on any attempt to influence legislation.
    Sec. 35.  Section 182.22, Code 2017, is amended to read as follows:
   182.22  Purchasers outside Iowa.
   The secretary may enter into arrangements with first purchasers from outside Iowa for payment of the assessment for direct use and the state assessment for clean water.
DIVISION IV
IOWA PORK PRODUCERS COUNCIL

IOWA PORK PRODUCERS ASSOCIATION

    Sec. 36.  Section 183A.1, subsection 1, Code 2017, is amended to read as follows:
   1.  “Assessment” means an excise tax on the sale of porcine animals as provided in this chapter which may include an assessment for direct use and a state assessment for clean water.
    Sec. 37.  Section 183A.1, Code 2017, is amended by adding the following new subsection:
   NEW SUBSECTION.  4A.  “National assessment” means an excise tax on the sale of porcine animals imposed pursuant to the Pork Promotion Act.
    Sec. 38.  Section 183A.1, subsection 7, Code 2017, is amended to read as follows:
   7.  “Pork Promotion Act” means the federal Pork Promotion, Research, and Consumer Information Act of 1985, 7 U.S.C. §4801 et seq.
    Sec. 39.  Section 183A.5, subsection 1, paragraph i, Code 2017, is amended to read as follows:
   i.  Receive, administer, disburse and account for, in addition to the funds moneys received from the assessment for direct use and the state assessment for clean water provided in this chapter, other funds moneys voluntarily contributed to the council for the purpose of promoting the pork industry.
    Sec. 40.  Section 183A.5, Code 2017, is amended by adding the following new subsection:
   NEW SUBSECTION.  4.  The council shall cooperate with the division of soil conservation and water quality of the department of agriculture and land stewardship in doing all of the following:
   a.  Transferring moneys collected from the state assessment imposed as a result of a special referendum conducted pursuant to section 183A.9 to the clean water fund created in section 466B.51.
   b.  Being reimbursed for reasonable expenses incurred in conducting an initial or special referendum to establish, continue, or terminate a state assessment for clean water.
    Sec. 41.  Section 183A.6, Code 2017, is amended to read as follows:
   183A.6  Assessment Assessments.
   1.  The council shall make impose an assessment for direct use of not less than point zero zero two nor more than point zero zero three of the gross sale price of all porcine animals. The assessment for direct use shall be point zero zero two five of the gross sale price of porcine animals until consent to an assessment has been given through the initial referendum referred to in this chapter. After approval of the initial referendum, the rate of assessment for direct use shall be determined established by the council.
   2.  a.  If an assessment for direct use is imposed under subsection 1, the council shall impose a state assessment for clean water if approved at a special referendum conducted pursuant to section 183A.9.
   b.  If a national assessment is imposed under section 183A.9A, the Iowa pork producers association shall impose a state assessment for clean water if approved at a special referendum conducted pursuant to section 183A.9.
   3.  a.  The assessment for direct use and the state assessment for clean water shall be made at the time of delivery of the porcine animals for sale, and shall be deducted by the first purchaser from the price paid to the seller. The first purchaser, at the time of sale, shall make and deliver to the seller an invoice for each purchase showing the names and addresses of the seller and the first purchaser, the number and kind of porcine animals sold, the date of sale, and the assessment for direct use, and any state assessment for clean water, made on the sale.  The council may require the invoice to separately indicate the amount withheld for the assessment for direct use and the state assessment for clean water.
   b.  Assessments An assessment for direct use and the state assessment for clean water shall be paid to the Iowa pork producers council or its designated agent by first purchasers at a time prescribed by the council, but not later than the last day of the month following the month in which the animals were purchased.
   4.  If a national assessment is imposed pursuant to section 183A.9A, and a state assessment for clean water is imposed under section 183A.9, the Iowa pork producers association shall impose and collect the state assessment for clean water in the same manner as the assessment for direct use set forth in subsection 3. However, the Iowa pork producers association may impose and collect the state assessment based on procedures for the national assessment as set forth in the pork promotion Act. The invoice may correspond to any invoice required by the pork promotion Act.
    Sec. 42.  Section 183A.7, Code 2017, is amended to read as follows:
   183A.7  Administration of moneys —— appropriation.
   1.  a.  Assessments An assessment for direct use imposed under this chapter pursuant to section 183A.6 and paid to and collected by the Iowa pork producers council shall be deposited in the pork promotion fund which is established in the office of the treasurer of state. The department of administrative services shall transfer moneys from the pork promotion fund to the council for deposit into an account established by the council in a qualified financial institution. The department shall transfer the moneys as provided in a resolution adopted by the council. However, the department is only required to transfer moneys once during each day and only during hours when the offices of the state are open.
   2.  b.  All moneys deposited in the pork promotion fund and transferred to the council as provided in this section are appropriated and shall be used for the administration of this chapter and for the payment of claims based upon obligations incurred in the performance of activities and functions set forth in this chapter.
   3.  c.  From the moneys collected, deposited, and transferred to the council as provided in this chapter, the council shall first pay the costs of referendums held pursuant to this chapter. Of the moneys remaining, at least twenty-five percent shall be remitted to the national pork producers council and at least fifteen percent shall be remitted to the Iowa pork producers association, in the proportion the committee council determines, for use by recipients in a manner not inconsistent with market development as defined in section 183A.1. Moneys remaining shall be spent as found necessary by the council to further carry out the provisions and purposes of this chapter.
   4.  d.  However, in In no event shall the total expenses exceed the total amount of moneys transferred from the pork promotion fund for use by the council.
   2.  a.  Moneys collected from a state assessment for clean water by the council may be deposited in a qualified financial institution and shall be transferred to the clean water fund created in section 466B.51.
   b.  If a national assessment is imposed pursuant to section 183A.9A, moneys from the state assessment for clean water collected by the Iowa pork producers association shall be transferred to the clean water fund created in section 466B.51.
   c.  The Iowa pork producers association shall maintain separate accounts for moneys collected from the national assessment and the state assessment for clean water.
   d.  The Iowa pork producers association shall adopt rules as necessary to administer this subsection and other sections in this chapter which directly or indirectly relate to this subsection.
    Sec. 43.  Section 183A.8, Code 2017, is amended to read as follows:
   183A.8  Refund of assessment assessments.

   1.  A producer from whom the an assessment for direct use or a state assessment for clean water has been deducted, upon is entitled to receive a refund upon filing a written application filed with the council within thirty days after its collection, shall have that amount refunded by the council.
   2.  a.  Application If an assessment for direct use or an assessment for direct use and any state assessment for clean water are imposed, application forms shall be given by the council to each first purchaser when requested and the first purchaser shall make the applications available to any producer.
   b.  Each application for a refund by a producer shall have attached a proof of assessment for direct use deducted.  If the assessment for direct use and state assessment for clean water are imposed, the attached proof shall indicate the amount of the assessment and the amount of the state assessment deducted. The proof of the assessment for direct use and any state assessment for clean water deducted shall be in the form of the original or a copy of the purchase invoice by the first purchaser.  The application shall allow the applicant to elect whether the refund is for the assessment for direct use or the state assessment for clean water or both. The council shall not approve an application unless the application indicates the election. 
   3.  The council shall have no not more than thirty days from the date the application for a refund is received to remit do all of the following: 
   a.  Remit the amount of the refund of an assessment for direct use to the producer.
   b.  Submit an approved application for the refund of a state assessment for clean water to the division of soil conservation and water quality of the department of agriculture and land stewardship which shall remit the amount of the refund to the producer.
   4.  If a national assessment is established pursuant to section 183A.9A and a state assessment for clean water is established pursuant to section 183A.9, the producer shall file a written application with the Iowa pork producers association in lieu of the council in the same manner as provided in subsection 1 and the Iowa pork producers association shall make applications available to first purchasers as provided in subsection 2. However, the Iowa pork producers association may provide for filing applications for a refund based on any applicable procedures set forth in the Pork Promotion Act. In any case, the Iowa pork producers association must transfer approved applications for refunds to the division of soil conservation and water quality of the department of agriculture and land stewardship for payment to producers in the same manner as described in subsection 3.
    Sec. 44.  Section 183A.9, Code 2017, is amended to read as follows:
   183A.9  Referendum Initial and special referendums —— assessments.
   1.  At a time designated by the council within eighteen months after the termination of the collection of assessments the national assessment imposed under the Pork Promotion Act, the secretary shall conduct an initial referendum under to establish an Iowa pork producers council and an assessment for direct use. The referendum shall be conducted according to administrative procedures prescribed adopted by the department of agriculture and land stewardship.
   2.  If an assessment for direct use is established and upon receipt of a request of ten percent or more of the number of producers eligible to vote, the secretary shall conduct a special referendum to determine whether producers favor the establishment of a state assessment for clean water. The special referendum shall be conducted in the same manner as an initial referendum conducted pursuant to subsection 1. The rate of the state assessment for clean water shall be established by the Iowa pork producers council not to exceed the rate of the assessment for direct use established pursuant to an initial referendum described in section 183A.6.
   3.  Upon receipt of a petition that otherwise complies with the requirements of subsection 2, the secretary may in lieu of conducting a special referendum include as part of the initial referendum a separate special question whether to establish a state assessment for clean water, if the secretary determines it to be cost-effective or the petition demands it.
   2.  4.  Upon signing a statement certifying to the secretary that the person is a bona fide producer as defined in this chapter, each producer is entitled to one vote in each initial or special referendum. The secretary shall determine the qualification of producers under this section.
   3.  5.  The secretary shall count and tabulate the ballots filed during the initial or special referendum within thirty days of the close of the referendum. If from the tabulation the secretary determines that a majority of the total number of producers voting in the initial referendum favors the establishment of the assessment for direct use, the assessment provided for in the referendum shall be levied imposed.  If from the tabulation the secretary determines that a majority of the total number of producers voting in the initial or special referendum favors the establishment of the state assessment for clean water, the state assessment shall be imposed. The ballots cast pursuant to this section constitute complete and conclusive evidence for use in determinations made by the secretary under this chapter.
   4.  6.  a.  The secretary shall hold subsequent referendums conduct a special referendum on request of receipt of a petition signed by ten percent or more of the number of producers eligible to vote, to determine whether the producers favor the termination or any of the following: 
   (1)  The suspension of the assessment for direct use.
   (2)  The termination of the assessment for direct use and the state assessment for clean water, if established.
   b.  The secretary shall suspend or terminate collection of the assessment for direct use within six months after the secretary determines that suspension or termination of the assessment for direct use is favored by a majority of the producers voting in the special referendum, and. The secretary shall terminate the assessment for direct use in an orderly manner as soon as practicable after the determination.
   7.  a.  The secretary shall conduct a special referendum on receipt of a petition of producers otherwise complying with the requirements in subsection 6 to conduct a special referendum to terminate the state assessment for clean water.
   b.  Upon receipt of a petition that otherwise complies with the requirements of subsection 6, the secretary shall include as part of the special referendum conducted under that subsection a separate special question whether to terminate the state assessment for clean water, if the secretary determines the inclusion of the separate special question is cost-effective or the petition demands inclusion.
   8.  The secretary shall terminate the state assessment for clean water in the same manner as provided in subsection 6, upon determining that the council is abolished, the assessment for direct use is not being collected, and the national assessment is not being collected.
    Sec. 45.  Section 183A.9A, Code 2017, is amended to read as follows:
   183A.9A  Suspension during national order.
   1.  The terms of all voting members serving on the council on January 31, 1986, terminate at the time provided in subsection 2.
   2.  a.  On the date of the commencement of the collection of assessments a national assessment under the Pork Promotion Act, the collection of the assessments assessment for direct use under section 183A.6 shall be suspended. The council shall continue to operate after suspension until all refunds are paid and all funds moneys remaining in the pork promotion fund, less a reserve for future refunds, are disbursed for the purposes enumerated in this chapter. Notwithstanding section 183A.7, the council need not retain a reserve for future referendums. Upon completion of these acts, the existence of the Iowa pork producers council is suspended. The secretary of agriculture shall certify the suspension of the council as of a date certain to the Iowa pork producers council and the Iowa pork producers association. When the existence of the council is suspended, the terms of office of council members terminate.
   b.  On the date of the commencement of the collection of the national assessment under the Pork Promotion Act, the Iowa pork producers association shall assume collection of the state assessment for clean water under section 183A.9.
   3.  a.  If the rate of the national assessment has changed, and upon receipt of a petition that otherwise complies with requirements for submitting a petition to suspend or terminate an assessment for direct use under section 183A.9, the secretary shall conduct a special referendum to determine whether to change the rate of the state assessment for clean water to a rate established by the Iowa pork producers association not to exceed the rate of the national assessment.
   b.  Upon receipt of a petition that otherwise complies with requirements for submitting a petition to suspend or terminate an assessment for direct use under section 183A.9, the secretary shall include as part of a referendum to change the rate of the national assessment, a separate special question whether to change the rate of the state assessment for clean water not to exceed the change in the national assessment, if the secretary determines the inclusion of the special question complies with federal law and either it is cost-effective or the petition demands inclusion.
   c.  If the national assessment is changed, and the secretary determines that a change in the state assessment for clean water is favored by a majority of the producers voting in a special referendum or separate special question as part of a referendum to change the rate of the national assessment, the rate of the state assessment shall be changed on a date determined by the secretary after consultation with the Iowa pork producers association but not later than six months after the date that the special referendum or referendum was conducted.
   3.  4.  On the date of the termination of the collection of assessments the national assessment under the Pork Promotion Act, the period of suspension of the assessments assessment for direct use under subsection 2 terminates. The secretary shall collect moneys from the assessments assessment for direct use under section 183A.6 and the state assessment for clean water under section 183A.9 until this duty can be resumed by the reactivated council.  The secretary shall deposit moneys collected from the assessment for direct use in the pork promotion fund. The secretary shall transfer moneys collected from the state assessment for clean water to the clean water fund created in section 466B.51.
   4.  5.  On the date of the termination of the collection of assessments the national assessment under the Pork Promotion Act, the period of suspension of the council under subsection 2 terminates. Within sixty days from this date, the secretary shall appoint voting members to the council. For purposes of section 183A.3, a voting member so appointed is deemed not to have served a previous consecutive term. The terms of office of voting members of the initial reactivated council shall be determined by lot, but members from the same district shall not serve the same terms. As nearly as possible one-third of the voting members shall serve for one year, one-third of the voting members shall serve for two years, and one-third of the voting members shall serve for three years. Subsequent voting members shall be appointed pursuant to section 183A.2.
   5.  6.  The secretary shall call the first meeting of the reactivated council. Upon reactivation, the council shall reimburse the secretary for expenses incurred in carrying out the duties provided in this section.
   7.  The state recognizes the Iowa pork producers association as a state association under the Pork Promotion Act. For purposes of this chapter, “association” shall include a successor state association or other state association that administers the national assessment in Iowa.
   8.  If a state assessment for clean water is established or continued pursuant to sections 183A.9 and 183A.9A, the Iowa pork producers association shall administer the state assessment for the period that the Pork Promotion Act is in effect, unless the state assessment is terminated under section 183A.9.
   9.  The Iowa pork producers association shall cooperate with the division of soil conservation and water quality of the department of agriculture and land stewardship in doing all of the following:
   a.  Transferring moneys from the state assessment for clean water to the clean water fund created in section 466B.51.
   b.  Being reimbursed for reasonable expenses incurred in conducting an initial or special referendum to establish, continue, or terminate a state assessment for clean water.
DIVISION V
IOWA EGG COUNCIL

    Sec. 46.  Section 184.1, subsection 1, Code 2017, is amended to read as follows:
   1.  “Assessment” means an excise tax on the sale of eggs as provided in this chapter which may include an assessment for direct use and a state assessment for clean water.
    Sec. 47.  Section 184.2, Code 2017, is amended to read as follows:
   184.2  Establishment of Iowa egg council and assessment assessments.
   1.  The secretary shall call and the department shall conduct a an initial referendum upon the department’s receipt of a petition for direct use which is signed by at least twenty producers requesting a an initial referendum to determine whether to establish an Iowa egg council and to impose establish an assessment for direct use to be imposed as provided in section 184.3.
   2.  a.  If the council has been established, the secretary shall call and the department shall conduct a special referendum upon the department’s receipt of a petition that otherwise complies with subsection 1 calling for a state assessment for clean water to be imposed as provided in section 184.3.
   b.  Upon receipt of a petition that otherwise complies with subsection 1, the secretary may in lieu of conducting a special referendum include as part of the initial referendum a separate special question whether to establish a state assessment for clean water to be imposed as provided in section 184.3, if the secretary determines the inclusion of the special question is cost-effective or the petition demands inclusion.
   3.  The initial referendum or a special referendum described in this section shall be conducted within sixty days following receipt of the petition. The petitioners shall guarantee payment of the cost of the initial referendum or special referendum by providing evidence of financial security as required by the department.
   2.  4.  The department shall give notice of the initial referendum on the question whether to establish a council and to impose an assessment or special referendum described in this section by publishing the notice for a period of not less than five days in at least one newspaper of general circulation in the state. The notice shall state the voting places, period of time for voting, and other information deemed necessary by the department. A An initial referendum or special referendum shall not be commenced until five days after the last date of publication.
   3.  a.  5.  Each producer who signs a statement certifying that the producer is a bona fide producer shall be an eligible voter under this section. An eligible voter is entitled to cast one vote in each initial referendum or special referendum conducted under this section.
   b.  6.  At the close of the initial referendum or special referendum, the secretary shall count and tabulate the ballots cast.
   (1)  7.  a.  If a majority of eligible voters approve establishing an Iowa egg a council and imposing an assessment for direct use, a the council and the assessment shall be established, and an the assessment shall be imposed, commencing not more than sixty days following the initial referendum as determined by the council and shall continue until eligible voters voting in a special referendum held conducted pursuant to section 184.5 vote to abolish the council and terminate the imposition of the assessment for direct use.
   b.  If a majority of eligible voters approve establishing a state assessment for clean water, pursuant to a special referendum, the state assessment shall be imposed commencing not more than sixty days following the special referendum as determined by the council. If a majority of eligible voters approve establishing a state assessment for clean water, as part of an initial referendum the state assessment shall be imposed in the same manner described in paragraph “a”. The state assessment for clean water shall continue until eligible voters voting in a special referendum conducted pursuant to section 184.5 vote to do any of the following:
   (1)  Abolish the council and terminate the assessment for direct use.
   (2)  Terminate the state assessment for clean water.
   (2)  8.  a.  If a majority of the voters do not approve establishing the council and imposing the assessment for direct use, the council and the assessment shall not be established, and an the assessment shall not be imposed, until another initial referendum is held conducted under this chapter and a majority of the eligible voters approve establishing a council and imposing the an assessment for direct use. If a an initial referendum should fail, another initial referendum to decide whether to establish a council and an assessment shall not be held conducted within at least one hundred eighty days from the date that the last initial referendum was conducted.
   b.  If a majority of the voters do not approve establishing a state assessment for clean water, the state assessment shall not be established until the question is approved at a special referendum or as part of an initial referendum conducted pursuant to this section. If a special referendum, or an initial referendum which includes the question whether to establish a state assessment for clean water, should fail, the special referendum or an initial referendum which includes the special question shall not be conducted for at least one hundred eighty days from the date that the last such special referendum or initial referendum was conducted.
   4.  9.  Immediately after passage of the question to establish a council and assessment for direct use at the an initial referendum, the secretary shall appoint seven members to the council in accordance with section 184.6 based on nominations made by the Iowa poultry association. The Iowa poultry association shall nominate and the secretary shall appoint two members representing large producers, two members representing medium producers, and three members representing small producers. The department, in consultation with the Iowa poultry association, shall determine initial classifications for small, medium, and large producers. The secretary shall complete the appointments within thirty days following passage of the question at the initial referendum.
    Sec. 48.  Section 184.3, Code 2017, is amended to read as follows:
   184.3  Assessment Assessments and state assessments.
   1.  a.  Except as provided in paragraph “b” subsection 4, an assessment for direct use of two and one-half cents is imposed on each thirty dozen eggs produced in this state. The assessment for direct use shall be imposed on a producer at the time of delivery to a purchaser who shall deduct the assessment for direct use from the price paid to a producer at the time of sale.
   2.  A state assessment for clean water is imposed and deducted in the same manner as the assessment for direct use provided in subsection 1. The rate of the state assessment for clean water shall be established by the council at a rate not to exceed the rate of assessment for direct use as provided in subsection 1.
   3.  The assessment for direct use and the state assessment for clean water shall not be refundable. The assessment is for direct use and state assessment for clean water are due to be paid to the council within thirty days following each calendar quarter, as provided by the council.
   b.  4.  a.  Upon request of the council, the secretary shall call a special referendum for producers to vote on whether to authorize an increase in the rate of assessment for direct use to an amount that is more than two and one-half cents imposed on each thirty dozen eggs produced in this state.
   b.  Upon request of the council, the secretary shall call a special referendum for producers to vote on whether to authorize an increase in the state assessment for clean water as established by the council not to exceed the rate of the assessment for direct use described in paragraph “a”. The secretary shall include as part of a special referendum to increase the rate of the assessment for direct use, a separate special question whether to increase the rate of the state assessment for clean water. If the secretary determines the inclusion of the special question is cost-effective or the request demands inclusion.
   5.  a.  Notice of a special referendum described in subsection 4 shall be given and the special referendum shall be conducted in the manner provided in section 184.5.
   b.  If a majority of the producers voting approves the an increase in the rate of the assessment for direct use, the council may increase the assessment for to the amount rate approved. However, the The rate of the assessment for direct use shall not exceed fifteen cents imposed on each thirty dozen eggs produced in this state.  If a majority of the producers voting approves an increase in the state assessment for clean water, the council shall increase the rate of the state assessment to a rate not to exceed the rate approved for the assessment for direct use.
   2.  6.  a.  If the producer sells eggs to a purchaser outside the state of Iowa, the producer shall deduct the assessment for direct use from the amount received from the sale and shall forward the amount deducted to the council within thirty days following each calendar quarter.
   b.  If the producer sells eggs to a purchaser outside the state of Iowa, the producer shall deduct the state assessment for clean water in the same manner as described in paragraph “a”.
   7.  If the producer and processor are the same person, then that person shall pay the assessment for direct use or the state assessment for clean water to the council within thirty days following each calendar quarter.
   3.  8.  The council may charge interest on any amount of the an assessment for direct use or a state assessment for clean water that is delinquent. The rate of interest shall not be more than the current rate published in the Iowa administrative bulletin by the department of revenue pursuant to section 421.7. The interest amount shall be computed from the date the assessment for direct use or a state assessment for clean water is delinquent, unless the council designates a later date. The interest amount shall accrue for each month in which there is delinquency calculated as provided in section 421.7, and counting each fraction of a month as an entire month. The interest amount due shall become a part of the assessment for direct use or a state assessment for clean water due.
    Sec. 49.  Section 184.4, subsection 1, paragraph e, Code 2017, is amended to read as follows:
   e.  The rate of withholding and the total amount of assessment for direct use and the state assessment for clean water withheld.  The council may require the invoice to separately indicate the amount withheld for the assessment for direct use and for the state assessment for clean water.
    Sec. 50.  Section 184.5, Code 2017, is amended to read as follows:
   184.5  Referendums Special referendum conducted to abolish the council and terminate imposition of the assessment or state assessment.
   1.  A special referendum may be called to abolish the council and terminate the imposition of the assessment for direct use established pursuant to section 184.3 and any state assessment for clean water established pursuant to that section.
   2.  a.  A special referendum may be called to terminate the state assessment for clean water established pursuant to section 184.3.
   b.  The secretary shall include as part of a special referendum to abolish the council and terminate the assessment for direct use described in subsection 1, a separate special question whether to terminate the state assessment for clean water, if the secretary determines the inclusion of the special question is cost-effective or the request demands inclusion.
   3.  The secretary shall call, and the department shall conduct, the a special referendum described in subsection 1 upon the department’s receipt of a petition requesting the special referendum. The petition must be signed by at least twenty eligible voters or fifty percent of all eligible voters, whichever is greater. In order to be an eligible voter under this section, a producer must have paid an assessment for direct use established under section 184.3, and a state assessment for clean water if established under that section, in the year of the special referendum. The special referendum shall be conducted within sixty days following receipt of the petition. The petitioners shall guarantee payment of the cost of the special referendum by providing evidence of financial security as required by the department.
   2.  4.  The following procedures shall apply to a special referendum conducted pursuant to this section:
   a.  The department shall publish a notice of the special referendum for a period of not less than five days in at least one newspaper of general circulation in the state. The notice shall state the voting places, period of time for voting, and other information deemed necessary by the department. A special referendum shall not be commenced until five days after the last date of publication.
   b.  Upon signing a statement certifying to the secretary that the producer is an eligible voter, a producer is entitled to one vote in each special referendum conducted pursuant to this section. The department may conduct the special referendum by mail, electronic means, or a general meeting of eligible voters. The department shall conduct the special referendum and count and tabulate the ballots filed during the special referendum within thirty days following the close of the special referendum.
   (1)  c.  If a majority of the total number of eligible voters who vote in the special referendum approve approves the continuation of the council and the imposition of the assessment for direct use, the council and the imposition of the assessment shall continue as provided in this chapter.
   d.  If a majority of eligible voters who vote in the special referendum approves the continuation of the state assessment for clean water, the imposition of the state assessment shall continue for the same period as the assessment for direct use.
   (2)  e.  If a majority of the total number of eligible voters who vote in the special referendum held pursuant to this section do does not approve continuing the council and the imposition of the assessment for direct use, the secretary shall terminate the collection of the assessment for direct use established pursuant to section 184.3 and the state assessment for clean water if established pursuant to that section, on the first day of the year for which the referendum was to continue. The secretary shall terminate the activities of the council in an orderly manner as soon as practicable after the determination is made. An additional initial referendum may be held as provided in conducted under section 184.2. However, the subsequent additional referendum shall not be held within conducted for at least one hundred eighty days after the date that the last such special referendum was conducted.
   f.  If a majority of the total number of eligible voters who vote in the special referendum does not approve continuing the state assessment for clean water, the secretary shall terminate the state assessment in an orderly manner as soon as practicable after the determination is made. An additional special referendum or an additional initial referendum that includes a separate special question to establish the state assessment for clean water may be conducted under section 184.2. However, the subsequent special referendum or initial referendum shall not be conducted for at least one hundred eighty days after the date that the last such special referendum or initial referendum was conducted.
    Sec. 51.  Section 184.10, subsection 4, Code 2017, is amended to read as follows:
   4.  Enter into arrangements for the collection of the assessment for direct use and any state assessment for clean water.
    Sec. 52.  Section 184.10, Code 2017, is amended by adding the following new subsection:
   NEW SUBSECTION.  8.  Cooperate with the division of soil conservation and water quality of the department of agriculture and land stewardship in doing all of the following:
   a.  Transferring moneys from the state assessment for clean water to the clean water fund created in section 466B.51.
   b.  Being reimbursed for reasonable expenses incurred in conducting an initial or special referendum to establish, continue, or terminate a state assessment for clean water.
    Sec. 53.  Section 184.13, Code 2017, is amended to read as follows:
   184.13  Administration of moneys.

   1.  Subject to the provisions of section 184.3, the assessment imposed by this chapter for direct use established pursuant to section 184.3, and the state assessment for clean water if established pursuant to that section, shall be remitted by the purchaser to the council not later than thirty days following each calendar quarter during which the assessment was collected.
   2.  Amounts Moneys collected from the assessment for direct use shall be deposited in the office of the treasurer of state in a separate fund to be known as the Iowa egg fund. The department of administrative services shall transfer moneys from the fund to the council for deposit into an account established by the council in a qualified financial institution. The department shall transfer the moneys as provided in a resolution adopted by the council. However, the department is only required to transfer moneys once during each day and only during hours when the offices of the state are open.
   3.  Moneys collected from a state assessment for clean water by the council may be deposited in a qualified financial institution and shall be transferred to the clean water fund created in section 466B.51.
    Sec. 54.  Section 184.14, Code 2017, is amended to read as follows:
   184.14  Use of moneys —— appropriation —— audit.
   1.  All moneys deposited in the Iowa egg fund and transferred to the council as provided in section 184.13 are appropriated and shall be used for the administration of this chapter and for the payment of claims based upon obligations incurred in the performance of activities and functions set forth in this chapter.
   2.  a.  Moneys collected, deposited in the fund, and transferred to the council as provided in this chapter are subject to audit by the auditor of state. The auditor of state may seek reimbursement for the cost of the audit. The moneys transferred to the council shall be used by the council first for the payment of collection expenses, second for payment of the costs and expenses arising in connection with conducting referendums, third to perform the functions and carry out the duties of the council as provided in this chapter, and fourth for the cost of audits by the auditor of state.
   b.  Moneys The moneys remaining after the council is abolished and the imposition of an the assessment for direct use imposed pursuant to section 184.3 is terminated pursuant to a special referendum conducted pursuant to section 184.5 shall continue to be expended in accordance with this chapter until exhausted.
   3.  If the council is abolished and the assessment for direct use is terminated pursuant to a special referendum conducted under section 184.5, remaining moneys collected from the state assessment for clean water shall be transferred to the clean water fund created in section 466B.51. If the state assessment for clean water is terminated pursuant to a special referendum conducted under that section, remaining moneys collected from the state assessment shall be transferred to the clean water fund created in section 466B.51.
   4.  Except as expressly provided in this chapter, moneys collected from a state assessment for clean water shall not be used for any purpose other than to be transferred to the clean water fund created in section 466B.51.
    Sec. 55.  Section 184.18, Code 2017, is amended to read as follows:
   184.18  Purchasers outside Iowa.
   The secretary may enter into arrangements with purchasers from outside Iowa for payment of the assessment for direct use and the state assessment for clean water.
DIVISION VI
IOWA TURKEY MARKETING COUNCIL

    Sec. 56.  Section 184A.1, Code 2017, is amended by adding the following new subsection:
   NEW SUBSECTION.  1A.  “Assessment” means an excise tax imposed on the sale of turkeys which may include an assessment for direct use and a state assessment for clean water.
    Sec. 57.  Section 184A.1A, Code 2017, is amended to read as follows:
   184A.1A  Referendum conducted to establish an Iowa turkey marketing council and impose an assessment Referendums and assessments.
   1.  The department shall call and conduct a an initial referendum upon the department’s receipt of a petition which is signed by at least twenty eligible voters requesting a an initial referendum to determine whether to establish an Iowa turkey marketing council as provided in section 184A.1B and impose establish an assessment for direct use imposed as provided in section 184A.2.
   2.  If a council is established, and upon receipt of a petition that otherwise complies with the requirements of subsection 1, the department shall call and conduct a special referendum to establish a state assessment for clean water as provided in section 184A.2.
   3.  Upon receipt of a petition that otherwise complies with the requirements of subsection 1, the secretary shall include as part of the initial referendum a separate special question whether to establish a state assessment for clean water described in subsection 2, if the secretary determines the inclusion of the separate special question is cost-effective or the petition demands inclusion.
   4.  In order to be an eligible voter under this section, a petitioner must be a qualified producer. The initial or special referendum shall be conducted by election within sixty days following receipt of the petition. The petitioners shall guarantee payment of the cost of the referendum by providing evidence of financial security as required by the department.
   2.  5.  The department shall give notice of the an initial referendum on the question whether to establish a council and to impose an assessment or special referendum by publishing the notice for a period of not less than five days in at least one newspaper of general circulation in the state, and for a similar period in other newspapers as prescribed by the department. The notice shall state the voting places, period of time for voting, the manner of voting, the amount of the assessment for direct use or the amount of the state assessment for clean water, and other information deemed necessary by the department. A referendum or special referendum shall not be commenced until five days after the last date of publication.
   3.  a.  6.  Each eligible voter who signs a statement certifying that the eligible voter is a qualified producer shall be an eligible voter under this section. An eligible voter is entitled to cast one vote in each initial referendum or special referendum conducted under this section. The department may conduct the initial referendum or special referendum by mail, electronic means, or a general meeting of eligible voters.
   b.  7.  At the close of the initial referendum or special referendum, the department shall count and tabulate the ballots cast.
   (1)  8.  a.  If a majority of eligible voters who vote in the an initial referendum approve establishing the council and imposing an assessment for direct use under section 184A.2, a council and the assessment shall be established, and an the assessment shall be imposed commencing not more than sixty days following the initial referendum as determined by the council. The council and assessment for direct use shall continue for five years as provided in section 184A.12.
   b.  If a majority of eligible voters who vote in a special referendum approve establishing a state assessment for clean water, the state assessment shall be imposed commencing not more than sixty days following the special referendum as determined by the council.
   (2)  c.  If a majority of eligible voters who vote in the an initial referendum do not approve establishing the council and imposing the an assessment for direct use, the council shall not be established and an assessment shall not be established and imposed until another initial referendum is held conducted under this section and a majority of the eligible voters voting approve establishing a council and imposing the an assessment for direct use. If a an initial referendum should fail, another initial referendum shall not be held within conducted for at least one hundred eighty days from the date of the last such initial referendum.
   d.  If a majority of the voters do not approve establishing a state assessment for clean water, the state assessment shall not be established and imposed until the question is approved at a special referendum or as part of an initial referendum conducted pursuant to this section. If a special referendum or an initial referendum which includes the question whether to establish a state assessment should fail, the special referendum or an initial referendum which includes the question shall not be conducted for at least one hundred eighty days from the date of the last such special referendum or initial referendum which included the separate special question.
   4. 9.  Within thirty days after approval at the initial referendum to establish a council and to impose an assessment for direct use, the department shall organize the council as provided in section 184A.1B.
    Sec. 58.  Section 184A.1C, subsection 4, Code 2017, is amended to read as follows:
   4.  Enter into arrangements for the collection, and deposit, and use of the assessment for direct use or the collection, deposit, and transfer of the state assessment for clean water.
    Sec. 59.  Section 184A.1C, Code 2017, is amended by adding the following new subsection:
   NEW SUBSECTION.  7.  Cooperate with the division of soil conservation and water quality of the department of agriculture and land stewardship in doing all of the following:
   a.  Transferring moneys collected from the state assessment for clean water to the clean water fund created in section 466B.51.
   b.  Being reimbursed for reasonable expenses incurred in conducting an initial or special referendum to establish, continue, or terminate a state assessment for clean water.
    Sec. 60.  Section 184A.2, Code 2017, is amended to read as follows:
   184A.2  Assessment Assessments —— direct use —— clean water.
   1.  If an assessment for direct use or a state assessment for clean water is approved by a majority of the eligible voters voting at a an initial referendum or special referendum as provided in section 184A.1A or 184A.12, all of the following shall apply:
   a.  The assessment for direct use or the state assessment for clean water shall be imposed on each turkey delivered for processing.
   b.  The council shall establish a rate of the assessment for direct use and the state assessment for clean water for each turkey delivered for processing. The council may establish different rates based on attributes or characteristics of turkeys. However, a rate shall not be more than three cents for each turkey delivered for processing.  The rate of the state assessment for clean water shall be established by the council at a rate not to exceed the assessment for direct use in effect when the referendum establishing the state assessment passes.
   c.  The assessment for direct use or the state assessment for clean water shall be imposed on the producer and collected at the time of delivery of a turkey to the processor. The assessment for direct use and the state assessment for clean water shall be deducted by the processor at the time of delivery from the price paid to the producer at the time of the sale to the processor. A processor shall remit assessments moneys collected from the assessment for direct use or the state assessment for clean water to the council on a monthly basis as provided by the council. The council shall deposit the remitted assessments moneys collected from the assessment for direct use in the Iowa turkey fund as provided in section 184A.4.  The council shall transmit moneys collected from the state assessment for clean water to the clean water fund created in section 466B.51.
   2.  The council may enter into agreements with processors from outside this state for the payment of the assessment for direct use and the state assessment for clean water.
   3.  a.  The council shall provide for a refund of an assessment for direct use, and of a state assessment for clean water if established, according to rules adopted by the council.
   b.  The council shall publish and disseminate applications for refunds. An application shall allow the applicant to elect whether the refund is for the assessment for direct use or a state assessment for clean water or both. The council shall not approve an application unless the application indicates the election.
   c.  The council shall transmit any approved application for a refund of the state assessment for clean water to the division of soil conservation and water quality of the department of agriculture and land stewardship which shall pay a refund to the producer in the same manner as the council pays a refund to the producer under paragraph “a”.
    Sec. 61.  Section 184A.3, Code 2017, is amended to read as follows:
   184A.3  Assessment documentation Assessments —— documentation.
   A processor receiving turkeys for slaughter shall do all of the following:
   1.  At the time of payment to the producer, the processor shall sign and submit a receipt to the producer which includes the rate of the assessment for direct use imposed and the rate of the state assessment for clean water imposed and the amount of the assessment and state assessment for all turkeys delivered for processing.
   2.  Within a period established by rules adopted by the council, the processor shall regularly sign and submit to the council an invoice or other records required by the council to expedite collection of the assessment for direct use and the state assessment for clean water. The council may require that the processor submit a separate invoice for each purchase. The invoice shall be legibly printed and shall not be altered. An invoice shall include all of the following:
   a.  The name and address of the producer and the seller, if the seller’s name is different from the producer.
   b.  The name and address of the processor.
   c.  The number of turkeys sold.
   d.  The date of the delivery.
   3.  The council may require the invoice to separately indicate the amount withheld for the assessment for direct use and the state assessment for clean water.
    Sec. 62.  Section 184A.4, Code 2017, is amended to read as follows:
   184A.4  Administration of moneys.
   1.  a.  The assessments Moneys from the assessment for direct use collected by the council as provided in section 184A.2 shall be deposited in the office of the treasurer of state in a special fund known as the Iowa turkey fund. The department of administrative services shall transfer moneys from the fund to the council for deposit into the turkey council account established by the council pursuant to this section. The department shall transfer the moneys as provided in a resolution adopted by the council. However, the department is only required to transfer moneys once during each day and only during hours when the offices of the state are open.
   2.  b.  The council shall establish a turkey council account in a qualified financial institution. The council shall provide for the deposit of all of the following into the account:
   a.  (1)  The assessment for direct use collected, deposited in the Iowa turkey fund, and transferred to the council as provided in this section.
   b.  (2)  Moneys, other than assessments moneys collected from the state assessment for clean water, but including moneys in the form of gifts, rents, royalties, or license fees received by the council pursuant to section 184A.1C.
   2.  Except as expressly provided in this chapter, moneys collected from the state assessment for clean water under this section shall not be used for any purpose other than to be transferred to the clean water fund created in section 466B.51.
    Sec. 63.  Section 184A.6, Code 2017, is amended to read as follows:
   184A.6  Use of moneys in the turkey council account.
   1.  All moneys deposited in the turkey council account pursuant to section 184A.4 shall be used by the council for purposes of administering this chapter.
   2.  The council shall expend moneys from deposited in the turkey council account first for the payment of expenses for the collection of assessments moneys from the assessment for direct use and the state assessment for clean water, second for the payment of expenses related to conducting a special referendum as provided in conducted under section 184A.12, and third for the cost of performing audits by the auditor of state as required in section 184A.9. The council shall expend remaining moneys for market development, producer education, and the payment of refunds to producers as provided in this chapter.
    Sec. 64.  Section 184A.10, Code 2017, is amended to read as follows:
   184A.10  Referendum Referendums.
   Upon receipt of a petition signed by at least twenty-five producers requesting an initial referendum election to determine whether to impose the fee assessment for direct use as provided in section 184A.2 the secretary shall call and conduct an initial referendum.
    Sec. 65.  Section 184A.12, Code 2017, is amended to read as follows:
   184A.12  Referendum Special referendum conducted to continue the council and the imposition of the assessment establishment of assessments.
   1.  The council shall call for a special referendum to continue the council established pursuant to section 184A.1A, and to continue the assessment for direct use established pursuant to section 184A.2.
   2.  The council shall call for a special referendum to continue the state assessment for clean water if established pursuant to section 184A.1A. The council may include as part of the special referendum to continue the council and the assessment for direct use under subsection 1, a separate special question whether to continue the state assessment for clean water.
   3.  The council shall call and conduct the a special referendum by election as provided in this section. The department shall oversee the conduct of the special referendum. The special referendum shall be conducted in the fifth year following the initial referendum establishing the council and the assessment for direct use as provided in section 184A.10.
   2.  4.  The following procedures shall apply to a special referendum conducted pursuant to this section:
   a.  The council shall publish a notice of the special referendum for a period of not less than five days in at least one newspaper of general circulation in the state and for a similar period in other newspapers as prescribed by the council. The notice shall state the voting places, period of time for voting, manner of voting, and other information deemed necessary by the council. A referendum shall not be commenced until five days after the last date of publication.
   b.  Upon signing a statement certifying to the council that a producer is an eligible voter, the producer is entitled to one vote in each special referendum conducted pursuant to this section. In order to be an eligible voter under this section, a producer must be a qualified producer who paid an the assessment for direct use and the state assessment for clean water, if established, in the year in which the special referendum is held conducted. The council may conduct the special referendum by mail, electronic means, or a general meeting of eligible voters. The council shall conduct the special referendum and count and tabulate the ballots filed during the special referendum within thirty days following the close of the special referendum.
   (1)  c.  If a majority of eligible voters who vote in the special referendum approves the continuation of continuing the council and the imposition of the assessment for direct use, the council and the imposition of the assessment shall continue as provided in this chapter.
   d.  If a majority of eligible voters who vote in the special referendum approves continuing the state assessment for clean water, the imposition of the state assessment shall continue for the same period as the assessment for direct use.
   (2)  e.  If a majority of eligible voters who vote in the special referendum does not approve continuing the council and the imposition of the assessment for direct use, the department shall terminate the collection of the assessment for direct use and the state assessment for clean water if established. The termination shall occur on the first day of the year for which the special referendum was to continue. The department shall terminate the activities of the council in an orderly manner as soon as practicable after the date that the special referendum was conducted. A subsequent initial referendum may be held conducted as provided in section 184A.1A. However, the subsequent initial referendum shall not be held within conducted for at least one hundred eighty days from the date of that the last special referendum was conducted.
   f.  If a majority of eligible voters who vote in the special referendum does not approve continuing the state assessment for clean water, the department shall terminate the state assessment in the same manner as described in paragraph “e”. A subsequent special referendum to establish a state assessment for clean water may be conducted as provided in section 184A.1A. However, the subsequent special referendum shall not be conducted for at least one hundred eighty days from the date that the last special referendum was conducted.
    Sec. 66.  Section 184A.12A, Code 2017, is amended to read as follows:
   184A.12A  Referendum Special referendum conducted to abolish the council and terminate the imposition of the assessment assessments.
   1.  A The department may call and conduct a special referendum may be called to abolish the council established pursuant to sections section 184A.1A and 184A.1B, and, to terminate the imposition of the assessment for direct use established pursuant to section 184A.2, and to terminate the state assessment for clean water established pursuant to section 184A.2.
   2.  a.  The department shall call and conduct, as provided in subsection 3, a special referendum to terminate the state assessment for clean water established pursuant to section 184A.2.
   b.  The department shall include as part of a special referendum to continue the council and the state assessment for direct use conducted under subsection 1, a separate special question to continue the state assessment for clean water, if the department determines the inclusion of the special question is cost-effective or a petition described in subsection 3 demands inclusion.
   3.  The department shall call and conduct the special referendum upon the department’s receipt of a petition requesting the special referendum or the inclusion of a separate special question as described in this section. The petition must be signed by at least twenty eligible voters or fifty percent of all eligible voters, whichever is greater. In order to be an eligible voter under this section, a producer must be a qualified producer who paid an the assessment for direct use and the state assessment for clean water, if established, in the year in which the special referendum is held conducted. The special referendum shall be conducted by election within sixty days following receipt of the petition. The petitioners shall guarantee payment of the cost of the special referendum by providing evidence of financial security as required by the department.
   2.  4.  The following procedures shall apply to a special referendum conducted pursuant to this section:
   a.  The department shall publish a notice of the special referendum for a period of not less than five days in at least one newspaper of general circulation in the state and for a similar period in other newspapers as prescribed by the department. The notice shall state the voting places, period of time for voting, manner of voting, and other information deemed necessary by the department. A special referendum shall not be commenced until five days after the last date of publication.
   b.  Upon signing a statement certifying to the department that a producer is an eligible voter, the producer is entitled to one vote in each special referendum conducted pursuant to this section. The department may conduct the special referendum by mail, electronic means, or a general meeting of eligible voters. The department shall conduct the special referendum and count and tabulate the ballots filed during the special referendum within thirty days following the close of the special referendum.
   (1)  c.  If a majority of eligible voters who vote in the special referendum approves the continuation of the council and the imposition of the assessment for direct use, the council and the imposition of the assessment shall continue as provided in this chapter.
   d.  If a majority of eligible voters who vote in the special referendum approves the continuation of the state assessment for clean water, the state assessment shall continue for the same period as the assessment for direct use.
   (2)  e.  If a majority of eligible voters who vote in the special referendum does not approve continuing the council and the imposition of the assessment for direct use, the department shall terminate the collection of the assessment for direct use on the first day of the year for which the special referendum was to continue. The department shall terminate the activities of the council in an orderly manner as soon as practicable after the special referendum. A subsequent initial referendum may be held conducted as provided in section 184A.1A. However, the subsequent initial referendum shall not be held within conducted for at least one hundred eighty days from the date of that the last special referendum was conducted.
   f.  If a majority of eligible voters who vote in the special referendum does not approve continuing the state assessment for clean water, the department shall terminate the collection of the state assessment in the same manner as described in paragraph “e”. A subsequent special referendum to establish a state assessment for clean water may be called and conducted under section 184A.1A, or a separate special question to establish the state assessment and included as part of a subsequent initial referendum may be called and conducted under that section. However, the subsequent special referendum or subsequent initial referendum that includes the special question shall not be conducted for at least one hundred eighty days from the date that the last special referendum terminating the state assessment was conducted.
DIVISION VII
IOWA SOYBEAN ASSOCIATION

    Sec. 67.  Section 185.1, subsection 17, Code 2017, is amended to read as follows:
   17.  “State assessment” or “assessment” means an excise tax on each bushel of soybeans marketed in this state which is imposed pursuant to a any of the following:
   a.  A state assessment for direct use pursuant to a promotional order as provided in this chapter.
   b.  A state assessment for clean water.
    Sec. 68.  Section 185.1A, Code 2017, is amended to read as follows:
   185.1A  Recognition of Iowa soybean association.

   1.  The corporation known as the Iowa soybean association incorporated under the laws of this state shall be entitled to the benefits of this chapter by filing each year with the secretary a verified proof of its organization, the names of its officers, and any other information required by the secretary.
   2.  The Iowa soybean association is a qualified state soybean board for purposes of administering a national assessment. For purposes of this chapter, “association” shall include a successor qualified state soybean board or other entity that is recognized by federal law to administer the national assessment in Iowa.
    Sec. 69.  Section 185.2, Code 2017, is amended to read as follows:
   185.2  Petition for election Referendums.

   1.  Upon receipt of a petition signed by at least five hundred producers requesting an initial referendum election to determine whether a promotional order shall be placed in effect, the secretary shall call an the initial referendum election to be conducted within sixty days following receipt of the petition. Producers shall vote by written ballot in the manner provided by this chapter for an initial referendum elections.
   2.  a.  If a promotional order is placed into effect, and upon receipt of a petition that otherwise complies with the requirements of this section, the secretary shall conduct a special referendum to establish a state assessment for clean water. The special referendum shall be conducted in the same manner as an initial referendum described in subsection 1.
   b.  Upon receipt of a petition that otherwise complies with the requirements of this section, the secretary shall include as part of the initial referendum a separate special question whether to establish and impose a state assessment for clean water described in this section, if the secretary determines the inclusion of the special question is cost-effective or the petition demands inclusion.
    Sec. 70.  Section 185.11, Code 2017, is amended by adding the following new subsection:
   NEW SUBSECTION.  5.  Cooperate with the division of soil conservation and water quality of the department of agriculture and land stewardship in doing all of the following:
   a.  Transferring moneys collected from the state assessment for clean water to the clean water fund created in section 466B.51.
   b.  Being reimbursed for reasonable expenses incurred in conducting an initial or special referendum to establish, continue, or terminate a state assessment for clean water.
    Sec. 71.  Section 185.13, subsection 4, Code 2017, is amended to read as follows:
   4.  Enter into arrangements for collection of the state assessment for direct use and any state assessment for clean water imposed on soybeans marketed in this state.
    Sec. 72.  Section 185.16, Code 2017, is amended to read as follows:
   185.16  Notice of referendum.
   1.  Notice of a referendum election to initiate or extend a promotional order shall be given by publication in a newspaper of general circulation in this state at least ten days prior to the date of the referendum and in any other reasonable manner as may be determined by the secretary for the initial referendum and by the board for extension of the promotional order.
   2.  Notice of a special referendum to establish or continue a state assessment for clean water shall be given in the same manner as described in subsection 1.
    Sec. 73.  Section 185.17, Code 2017, is amended to read as follows:
   185.17  Contents of notice.
   The A notice of referendum described in section 185.16 shall set forth the period of time for voting, voting places and such other information as the secretary may deem necessary in an initial referendum or special referendum. The board shall make such determinations in any subsequent initial referendum or special referendum.
    Sec. 74.  Section 185.18, Code 2017, is amended to read as follows:
   185.18  Counting.
   At the close of a referendum voting period, the secretary shall count and tabulate the ballots cast during the referendum period of the initial referendum or special referendum.
    Sec. 75.  Section 185.20, Code 2017, is amended to read as follows:
   185.20  Producers only to vote.
   Only producers are eligible to vote in an election for directors or a, an initial referendum election, or a special referendum, and only in the district in which they reside. A producer shall sign an affidavit at the time of voting certifying the producer’s eligibility to vote. Each qualified producer shall be entitled to one vote.
    Sec. 76.  Section 185.21, Code 2017, is amended to read as follows:
   185.21  Assessment State assessments —— rates.
   1.  A state assessment which for direct use that is adopted established upon the initiation of a promotional order shall be collected imposed during the effective period of the promotional order, and shall be of no force or effect upon termination of the promotional order.
   2.  a.  The state assessment for direct use collected as part of a promotional order shall be paid into the soybean promotion fund established in section 185.26.
   b.  The state assessment for clean water if established pursuant to section 185.2 or continued pursuant to section 185.25 shall be collected by the board and may be deposited in a qualified financial institution until transferred to the clean water fund created in section 466B.51.
   3.  The rate of the state assessment for direct use established as part of a promotional order shall be imposed as follows:
   a.  If the national assessment is being collected, the rate of the state assessment for direct use shall be one-quarter of one percent of the net market price of the soybeans marketed in this state.
   b.  If the national assessment is not being collected, the rate of the state assessment for direct use shall be one-half of one percent of the net market price of soybeans marketed in this state.
   4.  The rate of the state assessment for clean water shall be imposed as follows:
   a.  If the national assessment is being collected, the rate of the state assessment for clean water shall be established by the board at a rate not to exceed the combined rate of the state assessment for direct use and the national assessment as described in subsection 3, paragraph “a”.
   b.  If the national assessment is not being collected, the rate of the state assessment for clean water shall be established by the board at a rate not to exceed the rate of the state assessment for direct use as described in subsection 3, paragraph “b”.
    Sec. 77.  Section 185.22, Code 2017, is amended to read as follows:
   185.22  Promotional order Invoice.

   1.  After a promotional order has been issued, the first purchaser at the time of payment for soybeans shall show the total amount of the state assessment for direct use, and the state assessment for clean water, deducted from the sale on the purchase invoice.
   2.  The board may require the invoice to separately indicate the amount withheld for the state assessment for direct use and the state assessment for clean water. The invoice may correspond to any invoice required to collect the national assessment.
    Sec. 78.  Section 185.23, Code 2017, is amended to read as follows:
   185.23  Deduction of assessment.
   The state assessment for direct use and any state assessment for clean water shall be deducted from the purchase price of soybeans at the time of sale, and forwarded to the board by the first purchaser in the manner and at intervals determined by the board.
    Sec. 79.  Section 185.24, Code 2017, is amended to read as follows:
   185.24  Termination of a promotional order.

   1.  If a promotional order is not extended as determined by a special referendum, the secretary and the board shall terminate the promotional order in an orderly manner as soon as practicable.  The termination of the promotional order shall terminate the state assessment for direct use. After all moneys collected from the state assessment for direct use are expended, the board shall remain in existence as provided in its articles of incorporation or bylaws. The directors shall no longer be elected as required in this chapter. The ex officio directors shall no longer serve on the board. The board shall cease to administer this chapter, and the board shall no longer carry out its duties or exercise its powers as provided in this chapter. However, if a future initial referendum passes, the board shall be reorganized by the secretary and the directors then serving on the board shall be deemed to be the same directors who served on the board when the promotional order was terminated. The directors shall serve out their terms as though there had been no lapse of time between the two effective orders.
   2.  The termination of the promotional order shall terminate the state assessment for clean water. The board shall transfer any remaining moneys collected from the state assessment for clean water to the clean water fund created in section 466B.51.
    Sec. 80.  Section 185.25, Code 2017, is amended to read as follows:
   185.25  Special referendum referendums —— producer petition petitions.

   1.  Upon receipt of a petition described in subsection 3, the secretary shall call a special referendum to extend the promotional order including continuing the state assessment for direct use as part of the promotional order. 
   2.  a.  Upon receipt of a petition described in subsection 3, the secretary shall call a special referendum to continue the state assessment for clean water.
   b.  The secretary shall include as part of the special referendum conducted under subsection 1 a separate special question whether to continue the state assessment for clean water, if the secretary determines the inclusion of the special question is cost-effective or the petition demands inclusion.
    3.  The secretary shall call a special referendum described in this section not less than one hundred fifty nor more than two hundred forty days from a four-year anniversary of the effective date of an initial promotional order upon receipt of a petition, signed within that same period by a number of producers equal to or greater than one percent of the number of producers reported in the most recent United States census of agriculture, requesting a the special referendum to determine whether to extend the promotional order, and the secretary shall call a the special referendum to be conducted not earlier than thirty days before the four-year anniversary date.
   4.  a.  If the secretary determines that extension of the promotional order is not favored by a majority of the producers voting in the special referendum, the promotional order shall be terminated as provided in section 185.24.  The state assessment for clean water if established shall also be terminated. If the promotional order is terminated under this paragraph, another special referendum to reestablish the promotional order shall not be held within conducted for at least one hundred eighty days after the date that the most recent special referendum was conducted.
   b.  If the secretary determines that a continuance of the state assessment for clean water is not favored by a majority of the producers voting in the special referendum, the state assessment shall be terminated as provided in section 185.24. If the state assessment for clean water is terminated under this paragraph, another special referendum establishing the state assessment or another special referendum that includes a separate special question to establish the state assessment shall not be conducted for at least one hundred eighty days after the date that the last special referendum terminating the state assessment was conducted.
   5.  A succeeding special referendum shall be called by the secretary upon the petition of a number of producers equal to or greater than one percent of the number of producers reported in the most recent United States census of agriculture requesting a the special referendum, who shall guarantee the costs of the referendum.

   6.  a.  If no valid petition is received by the secretary within the time period described above in subsection 1, or if a petition is received but the special referendum to extend the promotional order passes, the promotional order shall continue in effect for four additional years from the anniversary of its effective date.
   b.  If no valid petition for a special referendum to continue the state assessment for clean water is received by the secretary within the time period described in subsection 3, the state assessment shall continue in effect for four additional years from the anniversary of the effective date of the promotional order.
    Sec. 81.  NEW SECTION.  185.25A  Special referendum —— change in state assessment rate for clean water.
   1.  If a national assessment is imposed and upon receipt of a petition that otherwise complies with the requirements of section 185.25, the secretary shall conduct a special referendum to change the rate of the state assessment for clean water established by the board at a rate not to exceed the combined rate of the national assessment and the state assessment for direct use as provided in section 185.21, subsection 3, paragraph “a”. The special referendum shall be conducted in the same manner as a special referendum conducted pursuant to section 185.25. However, the special referendum may be conducted in the same manner and in conjunction with a referendum to change the rate of the national assessment, to the extent permitted by federal law.
   2.  If a national assessment is not imposed and upon receipt of a petition that otherwise complies with the requirements of section 185.25, the secretary shall conduct a special referendum to change the rate of the state assessment for clean water established by the board to a rate not to exceed the rate of the state assessment for direct use as provided in section 185.21, subsection 3, paragraph “b”. The special referendum shall be conducted in the same manner as a special referendum conducted pursuant to section 185.25.
   3.  If a special referendum or special question to change the rate of the state assessment for clean water does not pass, the result of the vote shall not affect the existence or period during which the state assessment is in effect.
    Sec. 82.  Section 185.26, Code 2017, is amended to read as follows:
   185.26  Administration of moneys.
   1.  a.  The Moneys from a state assessment for direct use imposed as part of a promotional order and collected by the board shall be deposited in a special fund known as the soybean promotion fund, in the office of the treasurer of state. The fund may also contain include any gifts or federal or state grant received by the board. Moneys The moneys collected, deposited into the fund, and transferred to the board, as provided in this chapter, shall be subject to audit by the auditor of state.
   b.  The department of administrative services shall transfer moneys from the fund to the board for deposit into an account known as the soybean checkoff account which shall be established by the board in a qualified financial institution. The department shall transfer the moneys into the account as provided in a resolution adopted by the board. However, the department is only required to transfer moneys once during each day and only during hours when the offices of the state are open.
   c.  From moneys collected, deposited, and transferred to the soybean checkoff account as provided in this section, the board shall first pay the costs of initial and special referendums, elections, and other expenses incurred in the administration of this chapter, before moneys may be expended to carry out the purposes of the board as provided in section 185.11. The board shall strictly segregate moneys in the soybean checkoff account from all other moneys of the board. Moneys in the soybean checkoff account shall be expended by the board exclusively for carrying out the purposes of the board as provided in section 185.11. The account shall be subject to audit by the auditor of state.
   2.  Moneys from a state assessment for clean water collected by the board may be deposited in a qualified financial institution and shall be transferred to the clean water fund created in section 466B.51.
   2.  3.  The fiscal year of the association shall commence on October 1 and end on September 30.
    Sec. 83.  Section 185.27, Code 2017, is amended to read as follows:
   185.27  Refund of assessment.

   1.  a.  A producer who has sold soybeans and had the state assessment for direct use deducted from the sale price may, by application in writing to the board, secure a refund in the amount deducted. The refund shall be payable only when the application is made to the board within sixty days after the deduction.
   b.  A producer who has sold soybeans and had the state assessment for clean water deducted from the sale price may, by application in writing to the board, secure a refund of the amount deducted payable by the division of soil conservation and water quality of the department of agriculture and land stewardship. The board shall forward approved applications to the division within sixty days after the deduction.
   2.  Application forms shall be given by the board to each first purchaser when requested and the first purchaser shall make the applications available to any producer. Each application for refund by a producer shall have attached thereto proof of assessment deducted. The proof of assessment may be in the form of a duplicate or certified copy of the purchase invoice by the first purchaser. The board shall have thirty days from the date the application for refund is received to remit the refund to the producer.  The form shall allow the applicant to elect whether the refund is for the state assessment for direct use or for the state assessment for clean water or both. The board shall not approve an application unless the application indicates the election.
    Sec. 84.  Section 185.28, Code 2017, is amended to read as follows:
   185.28  Use of moneys —— appropriation.

   1.  All moneys collected, deposited, and transferred to the board as provided in this chapter, are appropriated and shall be used for the administration of this chapter by the board and for the payment of claims by the board based upon obligations incurred in the performance of board activities and functions provided in this chapter.
   2.  Except as expressly provided in this chapter, moneys collected from the state assessment for clean water under this section shall not be used for any purpose other than to be transferred to the clean water fund created in section 466B.51.
    Sec. 85.  Section 185.29, Code 2017, is amended to read as follows:
   185.29  Remission of remaining moneys.

   1.  After the board has paid the costs of elections, referendum, necessary board expenses, and administrative costs, the remaining moneys collected, deposited in the soybean promotion fund, and transferred to the soybean checkoff account as provided in section 185.26 shall be expended by the board as is necessary to carry out its purposes as provided in section 185.11.
   2.  Notwithstanding subsection 1, moneys collected from a state assessment for clean water by the board shall be transferred to the clean water fund created in section 466B.51.
    Sec. 86.  Section 185.33, Code 2017, is amended to read as follows:
   185.33  Report.
   The board shall each year prepare and submit a report summarizing the activities of the board under this chapter to the auditor of state and the secretary of agriculture. The report shall show all income, expenses, and other relevant information concerning fees state assessments for direct use collected and expended under the provisions of this chapter.
DIVISION VIII
IOWA CORN PROMOTION BOARD

    Sec. 87.  Section 185C.1, subsection 17, Code 2017, is amended to read as follows:
   17.  “State assessment” means a state excise tax on each bushel of corn marketed in this state which is imposed as part of a promotional order to administer this chapter pursuant to a state assessment for direct use or a state assessment for clean water.
    Sec. 88.  Section 185C.2, Code 2017, is amended to read as follows:
   185C.2  Petition for election Referendums.

   1.  Upon receipt of a petition signed by at least five hundred producers requesting an initial referendum election to determine whether a promotional order shall be placed in effect, the secretary shall call an initial referendum election to be conducted within sixty days following receipt of the petition. Producers shall vote by written ballot in the manner provided by this chapter for a referendum elections to approve the passage of a promotional order.
   2.  a.  If a promotional order is placed into effect, and upon receipt of a petition that otherwise complies with the requirements of subsection 1, the secretary shall conduct a special referendum to establish a state assessment for clean water.
   b.  Upon receipt of a petition that otherwise complies with the requirements of subsection 1, the secretary shall include as part of the initial referendum a separate special question whether to establish a state assessment for clean water as described in this section, if the secretary determines the inclusion of the special question is cost-effective or the petition demands inclusion.
    Sec. 89.  Section 185C.3, Code 2017, is amended to read as follows:
   185C.3  Establishment of corn promotion board.
   If a majority of the producers voting in the an initial referendum election conducted pursuant to section 185C.2 approve the passage of the promotional order, an Iowa corn promotion board shall be established. 
    Sec. 90.  Section 185C.11, subsection 1, Code 2017, is amended by adding the following new paragraph:
   NEW PARAGRAPH.  j.  Cooperate with the division of soil conservation and water quality of the department of agriculture and land stewardship in doing all of the following:
   (1)  Transferring moneys collected from the state assessment for clean water to the clean water fund created in section 466B.51.
   (2)  Being reimbursed for reasonable expenses incurred in conducting an initial or special referendum to establish, continue, or terminate a state assessment for clean water.
    Sec. 91.  Section 185C.11A, Code 2017, is amended by adding the following new subsection:
   NEW SUBSECTION.  5.  The board shall not expend moneys collected from the state assessment for clean water to support the program.
    Sec. 92.  Section 185C.15, Code 2017, is amended to read as follows:
   185C.15  Term of promotional order —— automatic extension.
   A promotional order shall be effective for four years from its effective date. Upon the date that an the promotional order is due to expire the order shall automatically be extended for an additional four years from the date that the order or last extension would otherwise expire, except as provided in section 185C.24.  A state assessment for clean water shall continue for the same period as the promotional order unless the state assessment for clean water is terminated as provided in section 185C.24.
    Sec. 93.  Section 185C.21, Code 2017, is amended to read as follows:
   185C.21  State assessment assessments —— rates.
   1.  The board shall determine and set the rate of the state assessment rate for direct use as part of the promotional order. State assessments A state assessment for direct use collected pursuant to the promotional order shall be paid into the corn promotion fund established in section 185C.26. Except as provided in subsection 2 subsections 2 and 3, a state assessment shall not exceed one-quarter of one cent per bushel upon corn marketed in this state. 
   2.  Upon request of the board, the secretary shall call a special referendum for producers to vote on whether to authorize an increase in the rate of the state assessment for direct use above one-quarter of one cent per bushel, notwithstanding subsection 1. The special referendum shall be conducted as provided in this chapter for referendum elections referendums. However, the special referendum shall not affect the existence or length of the promotional order in effect. If a majority of the producers voting in the special referendum approve the increase, the board may increase the assessment to the amount approved in the special referendum. The board shall establish the effective date of a rate change. However, the rate of a state assessment for direct use shall not exceed a scheduled maximum rate determined as follows:
   a.  Before September 1, 2014, one cent.
   b.  For each marketing year of the period beginning September 1, 2014, and ending August 31, 2019, two cents.
   c.  For each marketing year beginning on and after September 1, 2019, three cents.
   3.  The rate of the state assessment for clean water shall be established by the board not to exceed the rate of the state assessment for direct use in effect on the date that the special referendum establishing the state assessment for clean water is approved.
   4.  a.  Upon request of the board, the secretary shall call a special referendum for producers to vote on whether to authorize an increase in the state assessment for clean water to be established by the board at a rate not to exceed the rate in effect under subsection 2. The special referendum shall be conducted in the same manner as provided in that subsection.
   b.  Upon request of the board, the secretary shall include as part of the special referendum conducted under subsection 2 a separate special question whether to increase the rate of the state assessment for clean water to be established by the board at a rate not to exceed the rate of the proposed increased amount of the state assessment for direct use, if the secretary determines the inclusion of the special question is cost-effective or the request demands inclusion.
    Sec. 94.  Section 185C.22, Code 2017, is amended to read as follows:
   185C.22  State assessment assessments on purchase invoice.

   1.  After a promotional order has been issued, the first purchaser at the time of payment for corn shall show the total amount of state assessment for direct use and the state assessment for clean water deducted from the sale on the purchase invoice.
   2.  The board may require the invoice to separately indicate the amount withheld for the state assessment for direct use and the state assessment for clean water. The invoice may correspond to any invoice required to collect the federal assessment pursuant to section 185C.25A.
    Sec. 95.  Section 185C.24, Code 2017, is amended to read as follows:
   185C.24  Cancellation, and suspension, and termination.
   1.  The board shall be suspended and board operations and terms of members shall cease upon either of the following events:
   a.  The state assessment for direct use is terminated pursuant to section 185C.25.
   b.  The state assessment for direct use is suspended pursuant to section 185C.25A.
   2.  However, notwithstanding subsection 1, the board shall continue to operate until proceeds remaining in the corn promotion fund are disbursed. Disbursement shall be made as provided for payment of moneys under section 185C.26.
   3.  If a state assessment for direct use and the federal assessment are not imposed, the board shall continue to transfer remaining moneys collected from the state assessment for clean water to the clean water fund created in section 466B.51.
   3.  4.  The secretary shall order that the board be reconstituted upon either of the following events:
   a.  Recommencement of the promotional order, pursuant to section 185C.25.
   b.  Termination of the promotional order’s suspension, pursuant to section 185C.25A.
   4.  5.  Until the board is reconstituted under section 185C.8, the secretary has the powers to perform the duties of the board as provided in this chapter, including the collection of the state assessment for direct use at the rate in effect on the date when collection of the state assessment for direct use was terminated pursuant to section 185C.25. However, the secretary shall not expend funds moneys collected from the state assessment for direct use.
   6.  Until the board is reconstituted, the secretary may collect the state assessment for clean water equal to the rate when the state assessment for clean water was terminated. The secretary shall transfer the collected moneys to the clean water fund created in section 466B.51.
    Sec. 96.  Section 185C.25, Code 2017, is amended to read as follows:
   185C.25  Effective period of promotional order and state assessments —— special referendums —— termination.
   1.  a.  A state assessment for direct use adopted upon the initiation of a promotional order shall be collected during the effective period of the order, and shall have no effect upon termination of the promotional order.
   b.  A state assessment for clean water if established shall be collected during the effective period of the promotional order, and shall have no effect upon the termination of the promotional order. However, the state assessment for clean water shall still be collected during any period in which a federal assessment is collected, unless the state assessment is terminated under this section.
    2.  Upon adoption or extension of the promotional order, the order shall be effective for the period described in section 185C.15 unless the order is terminated as provided in this section or suspended as provided in section 185C.25A.
   2.  3.  The secretary shall call a special referendum to terminate the promotional order including the state assessment for direct use imposed as part of the promotional order, and the state assessment for clean water if established. 
   4.  a.  The secretary shall call, as provided in subsection 5, a special referendum to terminate the state assessment for clean water if established.
   b.  The secretary shall include as part of the special referendum conducted under subsection 3, a separate special question whether to terminate the state assessment for clean water, if the secretary determines the inclusion of the special question is cost-effective or the petition described in subsection 5 demands inclusion.
   5.  The secretary shall call a special referendum under this section if all the following conditions are met:
   a.  The secretary receives a petition signed by at least five percent of the state’s producers reported in the most recent United States census of agriculture.
   b.  The petition is signed by at least five percent of the state’s producers residing in each of five districts according to the most recent United States census of agriculture.
   c.  The secretary receives the petition not less than one hundred fifty days from the date that the order is due to expire, but receives the petition not more than two hundred forty days before the date that the order is due to expire.
   3.  6.  a.  The secretary shall conduct the election as provided for a special referendum to terminate the promotional order including the state assessment for direct use and the state assessment for clean water in the same manner as an initial referendum conducted under this chapter, including sections 185C.16 through 185C.20.
   b.  The secretary shall conduct the special referendum to terminate the state assessment for clean water in the same manner as an initial referendum conducted under this chapter, including sections 185C.16 through 185C.20.
   7.  a.  If upon counting and tabulating the ballots, the secretary determines that a majority of voting producers favor favors termination of the state assessment for direct use, the secretary, in cooperation with the board, shall terminate the state assessment for direct use in an orderly manner as soon as practicable.
   b.  If upon counting and tabulating the ballots, the secretary determines that a majority of voting producers favors termination of the state assessment for clean water, the secretary, in cooperation with the board, shall terminate the state assessment for clean water in an orderly manner as soon as practicable.
   4.  8.  a.  If the a state assessment for direct use is terminated, another an initial referendum shall not be held conducted for at least one hundred eighty days from the date that the state assessment is terminated.
   b.  If a state assessment for clean water is terminated, another special referendum or another special referendum which includes a separate special question to establish a state assessment shall not be conducted for at least one hundred eighty days from the date that the state assessment is terminated.
   9.  A succeeding special referendum to restore the state assessment for direct use shall be called by the secretary upon receipt of a petition of at least five hundred producers requesting a the special referendum. The petitioners shall guarantee the costs of the succeeding referendum. The secretary shall conduct the election special referendum as provided for a an initial referendum under this chapter

section 185C.2 not later than one hundred fifty days after the secretary receives the petition. If a referendum held conducted pursuant to this subsection is approved by producers, the promotional order shall commence no later than two hundred ten days following the date that the petition is received by the secretary.
   10.  a.  A succeeding special referendum to restore the state assessment for clean water shall be called by the secretary upon petition that otherwise complies with a petition to restore the state assessment for direct use under subsection 9. The secretary shall conduct the succeeding special referendum in the same manner as a succeeding special referendum conducted under that subsection. If a special referendum conducted pursuant to this paragraph is approved by producers, the state assessment for clean water shall commence not later than two hundred ten days following the date that the petition is received by the secretary.
   b.  Upon receipt of a petition that otherwise complies with a petition to restore the state assessment for direct use under subsection 9, the secretary shall include as part of the succeeding special referendum conducted under that subsection a separate special question whether to restore the state assessment for clean water, if the secretary determines the inclusion of the special question is cost-effective or the request demands inclusion.
    Sec. 97.  Section 185C.25A, Code 2017, is amended to read as follows:
   185C.25A  Collection of federal assessment.
   1.  a.  Prior to the collection of the federal assessment, the board may approve the continued collection of the state assessment for direct use as part of the promotional order during the collection of the federal assessment.
   b.  If a federal assessment is collected, the state assessment for clean water, if established, shall continue to be imposed until terminated under section 185C.25.
   2.  If the collection of amount collected from the state assessment for direct use would be in addition to, and not an offset against, the collection of amount collected from the federal assessment, the board shall suspend the collection of the state assessment. On the date of the termination or suspension of the federal assessment, the promotional order shall recommence and the suspension of the state assessment for direct use shall terminate.  The termination or suspension of the federal assessment shall not affect the state assessment for clean water.
    Sec. 98.  Section 185C.26, Code 2017, is amended to read as follows:
   185C.26  Deposit of moneys —— corn promotion fund —— administration of moneys.
   1.  a.  A Moneys from a state assessment for direct use imposed as part of a promotional order and collected by the board from a sale of corn shall be deposited in the office of the treasurer of state in a special fund known as the corn promotion fund. The corn promotion fund may also include any gifts, rents, royalties, interest, license fees, or a federal or state grant received by the board. Moneys The moneys collected, deposited in the corn promotion fund, and transferred to the board as provided in this chapter shall be subject to audit by the auditor of state. The auditor of state may seek reimbursement for the cost of the audit from moneys deposited in the fund as provided in this chapter.
   b.  The department of administrative services shall transfer moneys from the corn promotion fund to the board for deposit into an account established by the board in a qualified financial institution. The department shall transfer the moneys as provided in a resolution adopted by the board. However, the department is only required to transfer moneys once during each day and only during hours when the offices of the state are open.
   c.  From moneys collected, the board shall first pay all the direct and indirect costs incurred by the secretary and the costs of initial and special referendums, elections, and other expenses incurred in the administration of this chapter, before moneys may be expended to carry out the purposes of this chapter as provided in section 185C.11.
   2.  Moneys from a state assessment for clean water collected by the board may be deposited in a qualified financial institution and shall be transferred to the clean water fund created in section 466B.51.
    Sec. 99.  Section 185C.27, Code 2017, is amended to read as follows:
   185C.27  Refund of assessment state assessments.
   1.  a.  A producer who has sold corn and had a state assessment for direct use deducted from the sale price, by application in writing to the board, may secure a refund in the amount deducted. The refund shall be payable only when the application shall have been made to the board within sixty days after the deduction.  The board shall have thirty days from the date the application for refund is received to remit the refund to the producer.
   b.  A producer who has sold corn and had the state assessment for clean water deducted from the sale price may, by application in writing to the board, secure a refund of the amount deducted payable by the division of soil conservation and water quality of the department of agriculture and land stewardship. The board shall forward approved applications to the division within sixty days after the deduction.
   2.  Application forms shall be given by the board to each first purchaser when requested and the first purchaser shall make the applications available to any producer. Each application for refund by a producer shall have attached to the application proof of the state assessment deducted. The proof of state assessment may be in the form of a duplicate or certified copy of the purchase invoice by the first purchaser. The board shall have thirty days from the date the application for refund is received to remit the refund to the producer.  The form shall allow the applicant to elect whether the refund is for the state assessment for direct use or the state assessment for clean water or both. The board shall not approve an application unless the application indicates the election. 
   3.  a.  The board may provide for refunds of a federal assessment as provided by federal law. Unless inconsistent with federal law, refunds shall be made under section 185C.26.
   b.  The board may provide for filing applications for a refund of the state assessment for direct use and the state assessment for clean water based on applicable procedures for the filing of applications for refunds of the federal assessment.
    Sec. 100.  Section 185C.29, subsection 1, Code 2017, is amended to read as follows:
   1.  After the direct and indirect costs incurred by the secretary and the costs of elections, referendums, necessary board expenses, and administrative costs have been paid, at least seventy-five percent of the remaining moneys from a state assessment for direct use shall be deposited in the corn promotion fund and shall be used to carry out the purposes of the board as provided in section 185C.11.
    Sec. 101.  Section 185C.33, Code 2017, is amended to read as follows:
   185C.33  Report.
   The board shall each year prepare and submit a report summarizing the activities of the board under this chapter to the auditor of state and the secretary of agriculture. The report shall show all income, expenses, and other relevant information concerning fees the state assessment for direct use collected and expended under the provisions of this chapter.
DIVISION IX
CLEAN WATER FUND

    Sec. 102.  NEW SECTION.  7D.10B  Payment to the clean water fund.
   If moneys are not sufficient to reimburse the department of agriculture and land stewardship or a commodity organization described in section 466B.51 for reasonable expenses incurred in conducting a referendum to establish, continue, or terminate a state assessment for clean water, the executive council may authorize as an expense paid from the appropriations addressed in section 7D.29 the payment of an amount to the clean water fund created in section 466B.51. However, not more than a total of one hundred thousand dollars shall be paid pursuant to this section to the fund at any one time to pay for expenses incurred in conducting a referendum.
    Sec. 103.  Section 423.2, subsections 1, 2, 3, 4, 5, 7, 8, 9, and 14, Code 2017, are amended to read as follows:
   1.  a.  There is imposed a tax of six percent upon the sales price of all sales of tangible personal property, consisting of goods, wares, or merchandise, sold at retail in the state to consumers or users except as otherwise provided in this subchapter.  This paragraph is repealed on the date that paragraph “b” takes effect.
   b.  There is imposed a tax of six and one-eighth percent upon the sales price of all sales of tangible personal property, consisting of goods, wares, or merchandise, sold at retail in the state to consumers or users except as otherwise provided in this subchapter. This paragraph takes effect on July 1 of the fiscal year in which the department receives the first certification that commodity organizations have collected twenty million dollars from clean water assessments during the preceding fiscal year as provided in section 466B.55. This paragraph is repealed on the date that paragraph “c” takes effect.
   c.  There is imposed a tax of six and two-eighths percent upon the sales price of all sales of tangible personal property, consisting of goods, wares, or merchandise, sold at retail in the state to consumers or users except as otherwise provided in this subchapter. This paragraph takes effect on July 1 of the fiscal year in which the department receives the second certification that commodity organizations have collected twenty million dollars from clean water assessments during the preceding fiscal year as provided in section 466B.55. This paragraph is repealed on the date that paragraph “d” takes effect.
   d.  There is imposed a tax of six and three-eighths percent upon the sales price of all sales of tangible personal property, consisting of goods, wares, or merchandise, sold at retail in the state to consumers or users except as otherwise provided in this subchapter. This paragraph takes effect on July 1 of the fiscal year in which the department receives the third certification that commodity organizations have collected twenty million dollars from clean water assessments during the preceding fiscal year as provided in section 466B.55.
   a.  e.  For the purposes of this subchapter, sales of the following services are treated as if they were sales of tangible personal property:
   (1)  Sales of engraving, photography, retouching, printing, and binding services.
   (2)  Sales of vulcanizing, recapping, and retreading services.
   (3)  Sales of prepaid calling services and prepaid wireless calling services.
   (4)  Sales of optional service or warranty contracts, except residential service contracts regulated under chapter 523C, which provide for the furnishing of labor and materials and require the furnishing of any taxable service enumerated under this section. The sales price is subject to tax even if some of the services furnished are not enumerated under this section. Additional sales, services, or use taxes shall not be levied on services, parts, or labor provided under optional service or warranty contracts which are subject to tax under this subsection.
   (5)  Sales of optional service or warranty contracts for computer software maintenance or support services.
   (a)  If a service or warranty contract does not specify a fee amount for nontaxable services or taxable personal property, the tax imposed pursuant to this section shall be imposed upon an amount equal to one-half of the sales price of the contract.
   (b)  If a service or warranty contract provides only for technical support services, no tax shall be imposed pursuant to this section.
   (6)  Subparagraphs (4) and (5) shall also apply to the use tax imposed under section 423.5.
   b.  f.  Sales of building materials, supplies, and equipment to owners, contractors, subcontractors, or builders for the erection of buildings or the alteration, repair, or improvement of real property are retail sales of tangible personal property in whatever quantity sold. Where the owner, contractor, subcontractor, or builder is also a retailer holding a retail sales tax permit and transacting retail sales of building materials, supplies, and equipment, the person shall purchase such items of tangible personal property without liability for the tax if such property will be subject to the tax at the time of resale or at the time it is withdrawn from inventory for construction purposes. The sales tax shall be due in the reporting period when the materials, supplies, and equipment are withdrawn from inventory for construction purposes or when sold at retail. The tax shall not be due when materials are withdrawn from inventory for use in construction outside of Iowa and the tax shall not apply to tangible personal property purchased and consumed by the manufacturer as building materials in the performance by the manufacturer or its subcontractor of construction outside of Iowa. The sale of carpeting is not a sale of building materials. The sale of carpeting to owners, contractors, subcontractors, or builders shall be treated as the sale of ordinary tangible personal property and subject to the tax imposed under this subsection and the use tax.
   c.  g.  The use within this state of tangible personal property by the manufacturer thereof, as building materials, supplies, or equipment, in the performance of construction contracts in Iowa, shall, for the purpose of this subchapter, be construed as a sale at retail of tangible personal property by the manufacturer who shall be deemed to be the consumer of such tangible personal property. The tax shall be computed upon the cost to the manufacturer of the fabrication or production of the tangible personal property.
   2.  a.  A tax of six percent is imposed upon the sales price of the sale or furnishing of gas, electricity, water, heat, pay television service, and communication service, including the sales price from such sales by any municipal corporation or joint water utility furnishing gas, electricity, water, heat, pay television service, and communication service to the public in its proprietary capacity, except as otherwise provided in this subchapter, when sold at retail in the state to consumers or users.  This paragraph is repealed on the date that paragraph “b” takes effect.
   b.  A tax of six and one-eighth percent is imposed upon the sales price of the sale or furnishing of gas, electricity, water, heat, pay television service, and communication service, including the sales price from such sales by any municipal corporation or joint water utility furnishing gas, electricity, water, heat, pay television service, and communication service to the public in its proprietary capacity, except as otherwise provided in this subchapter, when sold at retail in the state to consumers or users. This paragraph takes effect on July 1 of the fiscal year in which the department receives the first certification that commodity organizations have collected twenty million dollars from clean water assessments during the preceding fiscal year as provided in section 466B.55. This paragraph is repealed on the date that paragraph “c” takes effect.
   c.  A tax of six and two-eighths percent is imposed upon the sales price of the sale or furnishing of gas, electricity, water, heat, pay television service, and communication service, including the sales price from such sales by any municipal corporation or joint water utility furnishing gas, electricity, water, heat, pay television service, and communication service to the public in its proprietary capacity, except as otherwise provided in this subchapter, when sold at retail in the state to consumers or users. This paragraph takes effect on July 1 of the fiscal year in which the department receives the second certification that commodity organizations have collected twenty million dollars from clean water assessments during the preceding fiscal year as provided in section 466B.55. This paragraph is repealed on the date that paragraph “d” takes effect.
   d.  A tax of six and three-eighths percent is imposed upon the sales price of the sale or furnishing of gas, electricity, water, heat, pay television service, and communication service, including the sales price from such sales by any municipal corporation or joint water utility furnishing gas, electricity, water, heat, pay television service, and communication service to the public in its proprietary capacity, except as otherwise provided in this subchapter, when sold at retail in the state to consumers or users. This paragraph takes effect on July 1 of the fiscal year in which the department receives the third certification that commodity organizations have collected twenty million dollars from clean water assessments during the preceding fiscal year as provided in section 466B.55.
   3.  a.  A tax of six percent is imposed upon the sales price of all sales of tickets or admissions to places of amusement, fairs, and athletic events except those of elementary and secondary educational institutions. A tax of six percent is imposed on the sales price of an entry fee or like charge imposed solely for the privilege of participating in an activity at a place of amusement, fair, or athletic event unless the sales price of tickets or admissions charges for observing the same activity are taxable under this subchapter. A tax of six percent is imposed upon that part of private club membership fees or charges paid for the privilege of participating in any athletic sports provided club members.  This paragraph is repealed on the date that paragraph “b” takes effect.
   b.  A tax of six and one-eighth percent is imposed upon the sales price of all sales of tickets or admissions to places of amusement, fairs, and athletic events except those of elementary and secondary educational institutions. A tax of six and one-eighth percent is imposed on the sales price of an entry fee or like charge imposed solely for the privilege of participating in an activity at a place of amusement, fair, or athletic event unless the sales price of tickets or admissions charges for observing the same activity are taxable under this subchapter. A tax of six and one-eighth percent is imposed upon that part of private club membership fees or charges paid for the privilege of participating in any athletic sports provided club members. This paragraph takes effect on July 1 of the fiscal year in which the department receives the first certification that commodity organizations have collected twenty million dollars from clean water assessments during the preceding fiscal year as provided in section 466B.55. This paragraph is repealed on the date that paragraph “c” takes effect.
   c.  A tax of six and two-eighths percent is imposed upon the sales price of all sales of tickets or admissions to places of amusement, fairs, and athletic events except those of elementary and secondary educational institutions. A tax of six and two-eighths percent is imposed on the sales price of an entry fee or like charge imposed solely for the privilege of participating in an activity at a place of amusement, fair, or athletic event unless the sales price of tickets or admissions charges for observing the same activity are taxable under this subchapter. A tax of six and two-eighths percent is imposed upon that part of private club membership fees or charges paid for the privilege of participating in any athletic sports provided club members. This paragraph takes effect on July 1 of the fiscal year in which the department receives the second certification that commodity organizations have collected twenty million dollars from clean water assessments during the preceding fiscal year as provided in section 466B.55. This paragraph is repealed on the date that paragraph “d” takes effect.
   d.  A tax of six and three-eighths percent is imposed upon the sales price of all sales of tickets or admissions to places of amusement, fairs, and athletic events except those of elementary and secondary educational institutions. A tax of six and three-eighths percent is imposed on the sales price of an entry fee or like charge imposed solely for the privilege of participating in an activity at a place of amusement, fair, or athletic event unless the sales price of tickets or admissions charges for observing the same activity are taxable under this subchapter. A tax of six and three-eighths percent is imposed upon that part of private club membership fees or charges paid for the privilege of participating in any athletic sports provided club members. This paragraph takes effect on July 1 of the fiscal year in which the department receives the third certification that commodity organizations have collected twenty million dollars from clean water assessments during the preceding fiscal year as provided in section 466B.55.
   4.  a.  A tax of six percent is imposed upon the sales price derived from the operation of all forms of amusement devices and games of skill, games of chance, raffles, and bingo games as defined in chapter 99B, and card game tournaments conducted under section 99B.27, that are operated or conducted within the state, the tax to be collected from the operator in the same manner as for the collection of taxes upon the sales price of tickets or admission as provided in this section. Nothing in this subsection shall legalize any games of skill or chance or slot-operated devices which are now prohibited by law.  This paragraph is repealed on the date that paragraph “b” takes effect.
   b.  A tax of six and one-eighth percent is imposed upon the sales price derived from the operation of all forms of amusement devices and games of skill, games of chance, raffles, and bingo games as defined in chapter 99B, and card game tournaments conducted under section 99B.27, that are operated or conducted within the state, the tax to be collected from the operator in the same manner as for the collection of taxes upon the sales price of tickets or admission as provided in this section. Nothing in this subsection shall legalize any games of skill or chance or slot-operated devices which are now prohibited by law. This paragraph takes effect on July 1 of the fiscal year in which the department receives the first certification that commodity organizations have collected twenty million dollars from clean water assessments during the preceding fiscal year as provided in section 466B.55. This paragraph is repealed on the date that paragraph “c” takes effect.
   c.  A tax of six and two-eighths percent is imposed upon the sales price derived from the operation of all forms of amusement devices and games of skill, games of chance, raffles, and bingo games as defined in chapter 99B, and card game tournaments conducted under section 99B.27, that are operated or conducted within the state, the tax to be collected from the operator in the same manner as for the collection of taxes upon the sales price of tickets or admission as provided in this section. Nothing in this subsection shall legalize any games of skill or chance or slot-operated devices which are now prohibited by law. This paragraph takes effect on July 1 of the fiscal year in which the department receives the second certification that commodity organizations have collected twenty million dollars from clean water assessments during the preceding fiscal year as provided in section 466B.55. This paragraph is repealed on the date that paragraph “d” takes effect.
   d.  A tax of six and three-eighths percent is imposed upon the sales price derived from the operation of all forms of amusement devices and games of skill, games of chance, raffles, and bingo games as defined in chapter 99B, and card game tournaments conducted under section 99B.27, that are operated or conducted within the state, the tax to be collected from the operator in the same manner as for the collection of taxes upon the sales price of tickets or admission as provided in this section. Nothing in this subsection shall legalize any games of skill or chance or slot-operated devices which are now prohibited by law. This paragraph takes effect on July 1 of the fiscal year in which the department receives the third certification that commodity organizations have collected twenty million dollars from clean water assessments during the preceding fiscal year as provided in section 466B.55.
   b.  e.  The tax imposed under this subsection covers the total amount from the operation of games of skill, games of chance, raffles, and bingo games as defined in chapter 99B, card game tournaments conducted under section 99B.27, and musical devices, weighing machines, shooting galleries, billiard and pool tables, bowling alleys, pinball machines, slot-operated devices selling merchandise not subject to the general sales taxes and on the total amount from devices or systems where prizes are in any manner awarded to patrons and upon the receipts from fees charged for participation in any game or other form of amusement, and generally upon the sales price from any source of amusement operated for profit, not specified in this section, and upon the sales price from which tax is not collected for tickets or admission, but tax shall not be imposed upon any activity exempt from sales tax under section 423.3, subsection 78. Every person receiving any sales price from the sources described in this section is subject to all provisions of this subchapter relating to retail sales tax and other provisions of this chapter as applicable.
   5.  a.  There is imposed a tax of six percent upon the sales price from the furnishing of services as defined in section 423.1.  This paragraph is repealed on the date that paragraph “b” takes effect.
   b.  There is imposed a tax of six and one-eighth percent upon the sales price from the furnishing of services as defined in section 423.1. This paragraph takes effect on July 1 of the fiscal year in which the department receives the first certification that commodity organizations have collected twenty million dollars from clean water assessments during the preceding fiscal year as provided in section 466B.55. This paragraph is repealed on the date that paragraph “c” takes effect.
   c.  There is imposed a tax of six and two-eighths percent upon the sales price from the furnishing of services as defined in section 423.1. This paragraph takes effect on July 1 of the fiscal year in which the department receives the second certification that commodity organizations have collected twenty million dollars from clean water assessments during the preceding fiscal year as provided in section 466B.55. This paragraph is repealed on the date that paragraph “d” takes effect.
   d.  There is imposed a tax of six and three-eighths percent upon the sales price from the furnishing of services as defined in section 423.1. This paragraph takes effect on July 1 of the fiscal year in which the department receives the third certification that commodity organizations have collected twenty million dollars from clean water assessments during the preceding fiscal year as provided in section 466B.55.
   7.  a.  A tax of six percent is imposed upon the sales price from the sales, furnishing, or service of solid waste collection and disposal service.  This paragraph is repealed on the date that paragraph “b” takes effect.
   b.  A tax of six and one-eighth percent is imposed upon the sales price from the sales, furnishing, or service of solid waste collection and disposal service. This paragraph takes effect on July 1 of the fiscal year in which the department receives the first certification that commodity organizations have collected twenty million dollars from clean water assessments during the preceding fiscal year as provided in section 466B.55. This paragraph is repealed on the date that paragraph “c” takes effect.
   c.  A tax of six and two-eighths percent is imposed upon the sales price from the sales, furnishing, or service of solid waste collection and disposal service. This paragraph takes effect on July 1 of the fiscal year in which the department receives the second certification that commodity organizations have collected twenty million dollars from clean water assessments during the preceding fiscal year as provided in section 466B.55. This paragraph is repealed on the date that paragraph “d” takes effect.
   d.  A tax of six and three-eighths percent is imposed upon the sales price from the sales, furnishing, or service of solid waste collection and disposal service. This paragraph takes effect on July 1 of the fiscal year in which the department receives the third certification that commodity organizations have collected twenty million dollars from clean water assessments during the preceding fiscal year as provided in section 466B.55.
   e.  (1)  For purposes of this subsection, “solid waste” means garbage, refuse, sludge from a water supply treatment plant or air contaminant treatment facility, and other discarded waste materials and sludges, in solid, semisolid, liquid, or contained gaseous form, resulting from nonresidential commercial operations, but does not include auto hulks; street sweepings; ash; construction debris; mining waste; trees; tires; lead acid batteries; used oil; hazardous waste; animal waste used as fertilizer; earthen fill, boulders, or rock; foundry sand used for daily cover at a sanitary landfill; sewage sludge; solid or dissolved material in domestic sewage or other common pollutants in water resources, such as silt, dissolved or suspended solids in industrial wastewater effluents or discharges which are point sources subject to permits under section 402 of the federal Water Pollution Control Act, or dissolved materials in irrigation return flows; or source, special nuclear, or by-product material defined by the federal Atomic Energy Act of 1954.
   (2)  A recycling facility that separates or processes recyclable materials and that reduces the volume of the waste by at least eighty-five percent is exempt from the tax imposed by this subsection if the waste exempted is collected and disposed of separately from other solid waste.
   b.  f.  A person who transports solid waste generated by that person or another person without compensation shall pay the tax imposed by this subsection at the collection or disposal facility based on the disposal charge or tipping fee. However, the costs of a service or portion of a service to collect and manage recyclable materials separated from solid waste by the waste generator are exempt from the tax imposed by this subsection.
   8.  a.  A tax of six percent is imposed on the sales price from sales of bundled transactions.  This paragraph is repealed on the date that paragraph “b” takes effect.
   b.  A tax of six and one-eighth percent is imposed on the sales price from sales of bundled transactions. This paragraph takes effect on July 1 of the fiscal year in which the department receives the first certification that commodity organizations have collected twenty million dollars from clean water assessments during the preceding fiscal year as provided in section 466B.55. This paragraph is repealed on the date that paragraph “c” takes effect.
   c.  A tax of six and two-eighths percent is imposed on the sales price from sales of bundled transactions. This paragraph takes effect on July 1 of the fiscal year in which the department receives the second certification that commodity organizations have collected twenty million dollars from clean water assessments during the preceding fiscal year as provided in section 466B.55. This paragraph is repealed on the date that paragraph “d” takes effect.
   d.  A tax of six and three-eighths percent is imposed on the sales price from sales of bundled transactions. This paragraph takes effect on July 1 of the fiscal year in which the department receives the third certification that commodity organizations have collected twenty million dollars from clean water assessments during the preceding fiscal year as provided in section 466B.55.
   e.  For the purposes of this subsection, a “bundled transaction” is the retail sale of two or more distinct and identifiable products, except real property and services to real property, which are sold for one nonitemized price. A “bundled transaction” does not include the sale of any products in which the sales price varies, or is negotiable, based on the selection by the purchaser of the products included in the transaction.
   b.  f.  “Distinct and identifiable products” does not include any of the following:
   (1)  Packaging or other materials that accompany the retail sale of the products and are incidental or immaterial to the retail sale of the products.
   (2)  A product provided free of charge with the required purchase of another product. A product is “provided free of charge” if the sales price of the product purchased does not vary depending on the inclusion of the product which is provided free of charge.
   (3)  Items included in the definition of “sales price” pursuant to section 423.1.
   c.  g.  “One nonitemized price” does not include a price that is separately identified by product on binding sales or other supporting sales-related documentation made available to the customer in paper or electronic form.
   9.  a.  A tax of six percent is imposed upon the sales price from any mobile telecommunications service, including all paging services, that this state is allowed to tax pursuant to the provisions of the federal Mobile Telecommunications Sourcing Act, Pub. L. No. 106-252, 4 U.S.C. §116 et seq.  This paragraph is repealed on the date that paragraph “b” takes effect.
   b.  A tax of six and one-eighth percent is imposed upon the sales price from any mobile telecommunications service, including all paging services, that this state is allowed to tax pursuant to the provisions of the federal Mobile Telecommunications Sourcing Act, Pub. L. No. 106-252, 4 U.S.C. §116 et seq. This paragraph takes effect on July 1 of the fiscal year in which the department receives the first certification that commodity organizations have collected twenty million dollars from clean water assessments during the preceding fiscal year as provided in section 466B.55. This paragraph is repealed on the date that paragraph “c” takes effect.
   c.  A tax of six and two-eighths percent is imposed upon the sales price from any mobile telecommunications service, including all paging services, that this state is allowed to tax pursuant to the provisions of the federal Mobile Telecommunications Sourcing Act, Pub. L. No. 106-252, 4 U.S.C. §116 et seq. This paragraph takes effect on July 1 of the fiscal year in which the department receives the second certification that commodity organizations have collected twenty million dollars from clean water assessments during the preceding fiscal year as provided in section 466B.55. This paragraph is repealed on the date that paragraph “d” takes effect.
   d.  A tax of six and three-eighths percent is imposed upon the sales price from any mobile telecommunications service, including all paging services, that this state is allowed to tax pursuant to the provisions of the federal Mobile Telecommunications Sourcing Act, Pub. L. No. 106-252, 4 U.S.C. §116 et seq. This paragraph takes effect on July 1 of the fiscal year in which the department receives the third certification that commodity organizations have collected twenty million dollars from clean water assessments during the preceding fiscal year as provided in section 466B.55.
   e.  For purposes of this subsection, taxes on mobile telecommunications service, as defined under the federal Mobile Telecommunications Sourcing Act that are deemed to be provided by the customer’s home service provider, shall be paid to the taxing jurisdiction whose territorial limits encompass the customer’s place of primary use, regardless of where the mobile telecommunications service originates, terminates, or passes through and shall in all other respects be taxed in conformity with the federal Mobile Telecommunications Sourcing Act. All other provisions of the federal Mobile Telecommunications Sourcing Act are adopted by the state of Iowa and incorporated into this subsection by reference. With respect to mobile telecommunications service under the federal Mobile Telecommunications Sourcing Act, the director shall, if requested, enter into agreements consistent with the provisions of the federal Act.
   14.  a.  The sales tax rate of six percent is reduced to five percent on January 1, 2030.  This paragraph is repealed on the date that paragraph “b” takes effect.
   b.  Notwithstanding paragraph “a”, if the sales tax rate is six and one-eighth percent, the sales tax rate is reduced to five and one-eighth percent on January 1, 2030. This paragraph is repealed on the date that paragraph “c” takes effect.
   c.  Notwithstanding paragraph “a”, if the sales tax rate is six and two-eighths percent, the sales tax rate is reduced to five and two-eighths percent on January 1, 2030. This paragraph is repealed on the date that paragraph “d” takes effect.
   d.  Notwithstanding paragraph “a”, if the sales tax rate is six and three-eighths percent, the sales tax rate is reduced to five and three-eighths percent on January 1, 2030.
    Sec. 104.  Section 423.5, Code 2017, is amended to read as follows:
   423.5  Imposition of tax.
   1.  Except as provided in paragraph “c”, an excise tax at the rate of six percent of the purchase price or installed purchase price is imposed on the following:
   a.  (1)  The Except as provided in subsection 4, an excise tax of six percent of the purchase price is imposed on the use in this state of tangible personal property as defined in section 423.1, including aircraft subject to registration under section 328.20, purchased for use in this state.
   (2)  This paragraph “a” is repealed on the date that paragraph “b” takes effect.
   b.  (1)  Except as provided in subsection 4, an excise tax of six and one-eighth percent of the purchase price is imposed on the use in this state of tangible personal property as defined in section 423.1, including aircraft subject to registration under section 328.20, purchased for use in this state.
   (2)  This paragraph “b” takes effect on July 1 of the fiscal year in which the department receives the first certification that commodity organizations have collected twenty million dollars from clean water assessments during the preceding fiscal year as provided in section 466B.55.
   (3)  This paragraph “b” is repealed on the date that paragraph “c” takes effect.
   c.  (1)  Except as provided in subsection 4, an excise tax of six and two-eighths percent of the purchase price is imposed on the use in this state of tangible personal property as defined in section 423.1, including aircraft subject to registration under section 328.20, purchased for use in this state.
   (2)  This paragraph “c” takes effect on July 1 of the fiscal year in which the department receives the second certification that commodity organizations have collected twenty million dollars from clean water assessments during the preceding fiscal year as provided in section 466B.55.
   (3)  This paragraph “c” is repealed on the date that paragraph “d” takes effect.
   d.  (1)  Except as provided in subsection 4, an excise tax of six and three-eighths percent of the purchase price is imposed on the use in this state of tangible personal property as defined in section 423.1, including aircraft subject to registration under section 328.20, purchased for use in this state.
   (2)  This paragraph takes effect on July 1 of the fiscal year in which the department receives the third certification that commodity organizations have collected twenty million dollars from clean water assessments during the preceding fiscal year as provided in section 466B.55.
   2.  For the purposes of this subchapter, the furnishing or use of the following services is also treated as the use of tangible personal property:  optional service or warranty contracts, except residential service contracts regulated under chapter 523C, vulcanizing, recapping, or retreading services, engraving, photography, retouching, printing, or binding services, and communication service when furnished or delivered to consumers or users within this state.
   b.  3.  a.  (1)  The Except as provided in subsection 4, an excise tax of six percent of the purchase price is imposed on the use of manufactured housing in this state, on the purchase price if the manufactured housing is sold in the form of tangible personal property or on the installed purchase price if the manufactured housing is sold in the form of realty.
   (2)  This paragraph “a” is repealed on the date that paragraph “b” takes effect.
   b.  (1)  Except as provided in subsection 4, an excise tax of six and one-eighth percent of the purchase price is imposed on the use of manufactured housing in this state, on the purchase price if the manufactured housing is sold in the form of tangible personal property or on the installed purchase price if the manufactured housing is sold in the form of realty.
   (2)  This paragraph “b” takes effect on July 1 of the fiscal year in which the department receives the first certification that commodity organizations have collected twenty million dollars from clean water assessments during the preceding fiscal year as provided in section 466B.55.
   (3)  This paragraph “b” is repealed on the date that paragraph “c” takes effect.
   c.  (1)  Except as provided in subsection 4, an excise tax of six and two-eighths percent of the purchase price or installed purchase price is imposed on the use of manufactured housing in this state, on the purchase price if the manufactured housing is sold in the form of tangible personal property or on the installed purchase price if the manufactured housing is sold in the form of realty.
   (2)  This paragraph “c” takes effect on July 1 of the fiscal year in which the department receives the second certification that commodity organizations have collected twenty million dollars from clean water assessments during the preceding fiscal year as provided in section 466B.55.
   (3)  This paragraph “c” is repealed on the date that paragraph “d” takes effect.
   d.  (1)  Except as provided in subsection 4, an excise tax of six and three-eighths percent of the purchase price or installed purchase price is imposed on the use of manufactured housing in this state, on the purchase price if the manufactured housing is sold in the form of tangible personal property or on the installed purchase price if the manufactured housing is sold in the form of realty.
   (2)  This paragraph “d” takes effect on July 1 of the fiscal year in which the department receives the third certification that commodity organizations have collected twenty million dollars from clean water assessments during the preceding fiscal year as provided in section 466B.55.
   c.  4.  An excise tax at the rate of five percent is imposed on the use of vehicles subject only to the issuance of a certificate of title and the use of manufactured housing, and on the use of leased vehicles, if the lease transaction does not require titling or registration of the vehicle, on the amount subject to tax as calculated pursuant to section 423.26, subsection 2.
   d.  5.  Purchases of tangible personal property made from the government of the United States or any of its agencies by ultimate consumers shall be subject to the tax imposed by this section. Services purchased from the same source or sources shall be subject to the service tax imposed by this subchapter and apply to the user of the services.
   e.  6.  a.  (1)  The An excise tax of six percent of the purchase price is imposed on the use in this state of services enumerated in section 423.2.
   (2)  This paragraph “a” is repealed on the date that paragraph “b” takes effect.
   b.  (1)  An excise tax of six and one-eighth percent of the purchase price is imposed on the use in this state of services enumerated in section 423.2.
   (2)  This paragraph “b” takes effect on July 1 of the fiscal year in which the department receives the first certification that commodity organizations have collected twenty million dollars from clean water assessments during the preceding fiscal year as provided in section 466B.55.
   (3)  This paragraph “b” is repealed on the date that paragraph “c” takes effect.
   c.  (1)  An excise tax of six and two-eighths percent of the purchase price is imposed on the use in this state of services enumerated in section 423.2.
   (2)  This paragraph “c” takes effect on July 1 of the fiscal year in which the department receives the second certification that commodity organizations have collected twenty million dollars from clean water assessments during the preceding fiscal year as provided in section 466B.55.
   (3)  This paragraph “c” is repealed on the date that paragraph “d” takes effect.
   d.  (1)  An excise tax of six and three-eighths percent of the purchase price is imposed on the use in this state of services enumerated in section 423.2.
   (2)  This paragraph “d” takes effect on July 1 of the fiscal year in which the department receives the third certification that commodity organizations have collected twenty million dollars from clean water assessments during the preceding fiscal year as provided in section 466B.55.
   e.  This tax is applicable where the service is first used in this state.
   2.  7.  The excise tax is imposed upon every person using the property within this state until the tax has been paid directly to the county treasurer, the state department of transportation, a retailer, or the department. This tax is imposed on every person using the services or the product of the services in this state until the user has paid the tax either to an Iowa use tax permit holder or to the department.
   3.  8.  For the purpose of the proper administration of the use tax and to prevent its evasion, evidence that tangible personal property was sold by any person for delivery in this state shall be prima facie evidence that such tangible personal property was sold for use in this state.
   4.  9.  Any person or that person’s affiliate, which is a retailer in this state or a retailer maintaining a place of business in this state under this chapter, that enters into a contract with an agency of this state must register, collect, and remit Iowa use tax under this chapter on all sales of tangible personal property and enumerated services. Every bid submitted and each contract executed by a state agency shall contain a certification by the bidder or contractor stating that the bidder or contractor is registered with the department and will collect and remit Iowa use tax due under this chapter. In the certification, the bidder or contractor shall also acknowledge that the state agency may declare the contract or bid void if the certification is false. Fraudulent certification, by act or omission, may result in the state agency or its representative filing for damages for breach of contract.
   5.  10.  a.  The use tax rate of If the use tax rate is six percent is reduced to five percent on January 1, 2030, the rate shall be reduced to five percent on that date.
   b.  If the use tax rate is six and one-eighth percent on January 1, 2030, the rate shall be reduced to five and one-eighth percent on that date.
   c.  If the use tax rate is six and two-eighths percent on January 1, 2030, the rate shall be reduced to five and two-eighths percent on that date.
   d.  If the use tax rate is six and three-eighths percent on January 1, 2030, the rate shall be reduced to five and three-eighths percent on that date.
    Sec. 105.  Section 423.43, subsection 1, paragraph b, Code 2017, is amended to read as follows:
   b.  Subsequent to the deposit into the general fund of the state and after the transfer of such revenues collected under chapter 423B, the department shall transfer one-sixth all of the following: 
   (1)  (a)  If the department receives the first certification described in section 423.5, revenues equaling one-eighth of one percent of the tax imposed by that section shall be transferred to the natural resources and outdoor recreation trust fund created in section 461.31.
   (b)  If the department receives the second certification described in section 423.5, revenues equaling two-eighths of one percent of the tax imposed by that section shall be transferred to the natural resources and outdoor recreation trust fund created in section 461.31.
   (c)  If the department receives the third certification described in section 423.5, revenues equaling three-eighths of one percent of the tax imposed by that section shall be transferred to the natural resources and outdoor recreation trust fund created in section 461.31.
   (2)  One-sixth of such remaining revenues to the secure an advanced vision for education fund created in section 423F.2. This paragraph is repealed December 31, 2029.
    Sec. 106.  NEW SECTION.  461.31A  Allocation of trust fund moneys to the clean water fund.
   On or after July 1 of each fiscal year and prior to any allocations to a trust fund account, an amount shall be transferred to the general account of the clean water fund created in section 466B.51. The transferred amount shall equal the amount credited to the assessment account of the clean water fund during prior fiscal years.
    Sec. 107.  Section 461.32, subsection 1, Code 2017, is amended to read as follows:
   1.   A natural resources account is created in the trust fund. Twenty-three After the transfer has been made from the trust fund to the clean water fund pursuant to section 461.31A, twenty-three percent of the remaining moneys credited to the trust fund shall be allocated to the trust fund’s natural resources account.
    Sec. 108.  Section 461.33, subsection 1, Code 2017, is amended to read as follows:
   1.  A soil conservation and water protection account is created in the trust fund. Twenty After the transfer has been made from the trust fund to the clean water fund pursuant to section 461.31A, twenty percent of the moneys credited to the trust fund shall be allocated to the trust fund’s soil conservation and water protection account.
    Sec. 109.  Section 461.34, subsection 1, Code 2017, is amended to read as follows:
   1.  A watershed protection account is created in the trust fund. Fourteen After the transfer has been made from the trust fund to the clean water fund pursuant to section 461.31A, fourteen percent of the moneys credited to the trust fund shall be allocated to the trust fund’s watershed protection account.
    Sec. 110.  Section 461.35, Code 2017, is amended to read as follows:
   461.35  Iowa resources enhancement and protection fund —— allocation.
   Thirteen After the transfer has been made from the trust fund to the clean water fund pursuant to section 461.31A, thirteen percent of the moneys credited to the trust fund shall be allocated to the Iowa resources enhancement and protection fund created in section 455A.18 for further allocation as provided in section 455A.19.
    Sec. 111.  Section 461.36, subsection 1, Code 2017, is amended to read as follows:
   1.  A local conservation partnership account is created in the trust fund. Thirteen After the transfer from the trust fund has been made to the clean water fund pursuant to section 461.31A, thirteen percent of the moneys credited to the trust fund shall be allocated to the trust fund’s local conservation partnership account.
    Sec. 112.  Section 461.37, subsection 1, Code 2017, is amended to read as follows:
   1.  A trails account is created in the trust fund. Ten After the transfer from the trust fund has been made to the clean water fund pursuant to section 461.31A, ten percent of the moneys credited to the trust fund shall be allocated to the trust fund’s trails account.
    Sec. 113.  Section 461.38, subsection 1, Code 2017, is amended to read as follows:
   1.  A lake restoration account is created in the trust fund. Seven After the transfer from the trust fund has been made to the clean water fund pursuant to section 461.31A, ten percent of the moneys credited to the trust fund shall be allocated to the account.
    Sec. 114.  Section 466A.3, subsection 1, unnumbered paragraph 1, Code 2017, is amended to read as follows:
   A watershed improvement review board is established.  The board shall advise the clean water commission created in section 466B.52.
    Sec. 115.  Section 466A.3, subsection 4, unnumbered paragraph 1, Code 2017, is amended to read as follows:
   The watershed improvement review board shall carry out the purposes of this chapter as provided in section 466A.2, including by determining how moneys are to be expended from the watershed improvement fund and authorizing the expenditure of moneys from the fund. In carrying out those purposes, and acting upon direction of the clean water commission, the board shall do all of the following:
    Sec. 116.  Section 466A.5, Code 2017, is amended to read as follows:
   466A.5  Administration.
   1.  The division of soil conservation and water quality created within the department of agriculture and land stewardship pursuant to section 159.5 shall provide administrative support to the board.  The division shall administer this chapter under the oversight of the clean water commission created in section 466B.52.
   2.  Not more than one percent of the total moneys deposited in the general account of the watershed improvement fund on July 1 of a fiscal year or fifty thousand dollars, whichever is less, is appropriated each fiscal year to the division for the purposes of assisting the watershed improvement review board in administering this chapter.
    Sec. 117.  Section 466B.2, Code 2017, is amended by adding the following new subsections:
   NEW SUBSECTION.  01.  “Commission” means the clean water commission created in section 466B.52.
   NEW SUBSECTION.  2A.  “Iowa nutrient reduction strategy” means the latest version of the document entitled “Iowa Nutrient Reduction Strategy” initially presented in 2012 by the department of agriculture and land stewardship, the department of natural resources, and Iowa state university of science and technology.
    Sec. 118.  Section 466B.3, subsections 1 and 2, Code 2017, are amended to read as follows:
   1.  Council established.  A water resources coordinating council is established within the department of agriculture and land stewardship.  The council shall carry out the powers and duties described in this section in accordance with the policies and under the direction and supervision of the commission. The council shall advise the commission as required by the commission.
   2.  Purpose.  The purpose of the council shall be to advise the commission regarding strategies and methods to preserve and protect Iowa’s water resources, and to coordinate the management of those resources in a sustainable and fiscally responsible manner. In the pursuit of this purpose providing advice to the commission and acting in accordance with its policies, and under its direction and supervision, the council shall use an integrated approach to water resource management, recognizing that insufficiencies exist in current approaches and practices, as well as in funding sources and the utilization of funds. The integrated approach used by the council shall attempt to overcome old categories, labels, and obstacles with the primary goal of managing the state’s water resources comprehensively rather than compartmentally.
    Sec. 119.  Section 466B.3, subsection 3, unnumbered paragraph 1, Code 2017, is amended to read as follows:
   The success of the council’s efforts made under this section shall ultimately be measured by the following outcomes:
    Sec. 120.  Section 466B.3, subsection 6, paragraph c, Code 2017, is amended to read as follows:
   c.  The council, acting in accordance with the policies and under the direction and supervision of the commission, shall develop recommendations for policies and funding promoting a watershed management approach to reduce the adverse impact of future flooding on this state’s residents, businesses, communities, and soil and water quality. The council and the commission shall consider policies and funding options for various strategies to reduce the impact of flooding, including but not limited to additional floodplain regulation; wetland protection, restoration, and construction; the promulgation and implementation of statewide storm water management standards; conservation easements and other land management; perennial ground cover and other agricultural conservation practices; pervious pavement, bioswales, and other urban conservation practices; and permanent or temporary water retention structures. In developing recommendations, the council and the commission shall consult with hydrological and land use experts, representatives of cities, counties, drainage and levee districts, agricultural interests, and soil and water conservation districts, and other urban and regional planning experts.
    Sec. 121.  Section 466B.31, subsection 1, Code 2017, is amended to read as follows:
   1.  a.  A watershed planning advisory council is established for purposes of assembling a diverse group of stakeholders to review research and make recommendations to various state entities regarding methods to protect water resources in the state, assure an adequate supply of water, mitigate and prevent floods, and coordinate the management of those resources in a sustainable, fiscally responsible, and environmentally responsible manner.
   b.  The council shall carry out the powers and duties described in this section in accordance with the policies and under the direction and supervision of the commission. The council shall advise the commission as required by the commission.
   c.  The advisory commission shall supervise the council may seek in seeking input from councils of governments or other organizations in the development of its recommendations. The advisory council shall meet once a year and at other times as deemed necessary to meet the requirements of this section. The advisory council may appoint a task force to assist the advisory council in completing its duties.
    Sec. 122.  Section 466B.31, subsection 3, unnumbered paragraph 1, Code 2017, is amended to read as follows:
   By December 1 of each year, the watershed planning advisory council with approval by the commission shall submit a report to the governor, the general assembly, the department of agriculture and land stewardship, the department of natural resources, and the water resources coordinating council. The report shall include recommendations regarding all of the following:
    Sec. 123.  Section 466B.42, Code 2017, is amended to read as follows:
   466B.42  Water quality initiative.
   The division shall establish a A water quality initiative is established in order to assess and reduce nutrients in this state’s watersheds, including subwatersheds, and regional watersheds. The division commission shall establish oversee and the division, acting in accordance with the policies and under the direction and supervision of the commission, shall administer the water quality initiative and advise the commission as required by the commission. As part of the initiative, the division shall administer projects to reduce nutrients in surface waters from nonpoint sources in a scientific, reasonable, and cost-effective manner. The commission and the division shall utilize a pragmatic, strategic, and coordinated approach with the goal of accomplishing reductions over time.
    Sec. 124.  NEW SECTION.  466B.51  Clean water fund.
   1.  A clean water fund is created in the state treasury under the management and control of the clean water commission. The clean water fund is composed of a general account, an assessment account, and an expenditures account.
   2.  The clean water fund’s general account includes moneys transferred from the natural resources and outdoor recreation trust fund pursuant to section 461.31A, moneys appropriated to the general account from the general assembly, and other moneys available to and obtained or accepted by the commission, including moneys from public or private sources. However, the general account shall not include moneys transferred from a commodity organization as described in subsection 3. Except as provided in subsection 3, all moneys received by the commission for deposit into the clean water fund shall be credited to the general account.
   3.  The clean water fund’s assessment account includes the following moneys collected and transferred to the account from the following commodity organizations:
   a.  The Iowa dairy industry commission as established in chapter 179 or the Iowa state dairy association as recognized in that chapter, which shall transfer moneys collected from the state assessment for clean water as provided in that chapter, including section 179.5.
   b.  The Iowa beef cattle producers association as established in chapter 181 which shall transfer moneys from the state assessment as provided in that chapter, including section 181.13.
   c.  The Iowa sheep and wool promotion board established pursuant to chapter 182 which shall transfer moneys from the state assessment as provided in that chapter, including section 182.18.
   d.  The Iowa pork producers council as established in chapter 183A, or the Iowa pork producers association as recognized in that chapter, which shall transfer moneys from the state assessment as provided in that chapter, including section 183A.7.
   e.  The Iowa egg council as established in chapter 184 which shall transfer moneys from the state assessment as provided in that chapter, including section 184.13.
   f.  The Iowa turkey marketing council as established in chapter 184A which shall transfer moneys from the state assessment as provided in that chapter, including section 184A.4.
   g.  The Iowa soybean association as recognized in chapter 185 which shall transfer moneys from the state assessment as provided in that chapter, including section 185.26.
   h.  The Iowa corn promotion board as established in chapter 185C which shall transfer moneys from the state assessment as provided in that chapter, including section 185C.26.
   4.  The clean water fund’s expenditures account only includes moneys transferred from the general account and the state assessment account as provided in this section.
   5.  a.  Moneys in the clean water fund shall not be used for any purpose other than described in this section.
   b.  Moneys in the general account shall not be used for any purpose other than for transfer to the expenditures account.
   c.  Moneys in the assessment account shall not be used for any purpose other than to do the following:
   (1)  Pay administrative expenses which are limited to all of the following:
   (a)  Reimbursing the department of agriculture and land stewardship or a commodity organization for all reasonable costs of conducting a referendum to determine if a state assessment for clean water is to be established, continued, or terminated. The division shall apply to the executive council if necessary to receive moneys required to pay for reasonable costs of conducting a referendum as provided in section 7D.10B.
   (b)  Remitting refunds of moneys to persons who have paid a state assessment for clean water to a commodity organization, if the application for a refund has been approved by the commodity organization and submitted to the department as required by the division of soil conservation and water quality.
   (c)  Paying reasonable expenses associated with the collection and transfer of moneys associated with the collection of the state assessment for clean water and the processing of refund applications associated with such collection.
   (d)  Transfer remaining moneys to the expenditures account as provided in this section.
   6.  Moneys in the fund’s expenditures account shall be expended by the clean water commission to support programs and projects administered to improve the state’s watersheds and surface waters, including but not limited to projects associated with the water quality initiative established pursuant to section 466B.42. Moneys in the expenditures account shall be used to support soil conservation and watershed protection, the installation of conservation practices and watershed protection improvements as provided in chapters 161A, 161C, 461A, 466, and 466A. Moneys in the expenditures account shall also be used to support water quality programs and projects administered by the Iowa finance authority under chapter 16.
   7.  Notwithstanding section 8.33, moneys in the clean water fund shall not revert. Notwithstanding section 12C.7, subsection 2, interest or earnings on moneys in the fund shall be credited to the fund.
    Sec. 125.  NEW SECTION.  466B.52  Clean water commission —— appointment and administration.
   1.  A clean water commission is created which shall be housed in the division of soil conservation and water quality of the department of agriculture and land stewardship.
   2.  The commission shall be comprised of nine voting members appointed by the governor.
   3.  The commission shall also be comprised of four legislative members who shall serve in a nonvoting, ex officio capacity. The legislative members shall include all of the following:
   a.  Two members of the senate. One senator shall be appointed by the majority leader of the senate and one senator shall be appointed by the minority leader of the senate.
   b.  Two members of the house of representatives. One member shall be appointed by the speaker of the house of representatives and one member shall be appointed by the minority leader of the house of representatives.
   4.  The commission shall also be comprised of persons appointed by commodity organizations described in section 466B.51 who shall serve in a nonvoting, ex officio capacity. Each commodity organization may appoint one person if producers who are members of the commodity organization have approved the establishment of a state assessment for clean water to be transferred to the clean water fund created in section 466B.51.
   5.  Voting members shall serve four-year terms and may be reappointed. The initial terms of the voting members shall be staggered at the discretion of the governor. Nonvoting members shall serve at the pleasure of the persons or commodity organizations making their appointments.
   6.  Sections 69.16, 69.16A, and 69.19 shall apply to the voting members. The voting members are subject to senate confirmation.
   7.  a.  A member, other than a legislative member, is eligible to receive compensation as provided in section 7E.6, and shall be reimbursed for actual and necessary expenses incurred in performance of the members’ duties. All expenses shall be paid from appropriations for such purposes and the commission shall be subject to the budget requirements of chapter 8.
   b.  A legislative member serves for a term as provided in section 69.16B and is eligible for per diem and expenses as provided in section 2.10.
   8.  The commission shall meet in January of each year for the purpose of electing one of its voting members as chairperson.
   9.  The commission shall meet on a regular basis and at the call of the chairperson or upon the written request to the chairperson of five or more voting members. Written notice of the time and place of the meeting shall be given to each member.
   10.  A majority of voting members constitutes a quorum, and the affirmative vote of a majority of the voting members is necessary for any action taken by the board, except that a lesser number may adjourn a meeting.
   11.  Any vacancy in the membership of the commission shall be filled in the same manner as regular appointments are made for the unexpired portion of the regular term. A vacancy in the membership of the commission does not impair the rights of a quorum to exercise all rights and perform all duties of the commission.
   12.  A person shall not serve as a member of the commission if the person has an interest in a contract or job of work or material or the profits thereof or service to be performed for the department of agriculture and land stewardship or department of natural resources. Any member of the commission who accepts employment with or acquires any stock, bonds, or other interest in any company or corporation doing business with the department of agriculture and land stewardship or the department of natural resources shall be disqualified from remaining a member of the commission.
   13.  The department of agriculture and land stewardship in cooperation with the department of natural resources shall assist the commission by doing all of the following:
   a.  Provide the commission with necessary facilities, items, and clerical support.
   b.  Perform administrative functions necessary for the management of the commission.
    Sec. 126.  NEW SECTION.  466B.53  Clean water commission —— powers and duties.
   1.  The purpose of the clean water commission shall be to identify and finance methods to improve surface water quality, including by reducing contributing contaminant loads to receiving surface waters and reducing soil erosion and sediment loss.
   2.  In furthering the purpose set forth in subsection 1, the clean water commission shall do all of the following:
   a.  Develop comprehensive water quality policies and plans, that identify existing plans, programs, and projects. The commission shall use existing data and amend, augment, and consolidate existing plans or strategies which have improved or which promise to improve water quality.
   b.  Identify additional water quality improvement needs on a watershed basis, including the need to develop new or innovate programs or projects.
   c.  Measure the effectiveness and results of programs and projects according to performance measures and associated benchmarks. The data demonstrating accountability collected by the department shall be made readily available and maintained in a computer-readable format.
   3.  The clean water commission shall establish objectives of programs described in subsection 2 to be achieved by dates identified by the commission which may include program timelines and milestones. The commission shall measure and monitor progress toward achieving program objectives.
   4.  The commission shall develop comprehensive water quality policies and plans, that integrate existing plans, programs, and projects in accordance with the Iowa nutrient reduction strategy. The commission shall use existing data and amend, augment, and consolidate existing plans or strategies which have improved or which promise to improve water quality. The commission shall also develop new comprehensive water quality policies and plans, that integrate existing plans, programs, and projects. The information collected by the department shall be made readily available and maintained in a computer-readable format.
   5.  The commission shall identify additional water quality improvement needs on a watershed basis, including the need to develop new or innovate programs or projects.
   6.  By October 1, 2019, and by October 1 of each year thereafter, the commission shall submit a report to the governor and the general assembly used to support the programs described in subsection 2. A report shall include all of the following:
   a.  A description and update of the current status of water quality programs and associated projects, and the expenditure of moneys appropriated to support the programs and associated projects administered by state entities, including but not limited to the department of agriculture and land stewardship, the department of natural resources, Iowa state university of science and technology, the Iowa finance authority, and watershed management authorities.
   b.  An evaluation of the successes and failures of a water quality program and any associated project in meeting the program’s objectives. The report shall include any legislative proposals to enact, amend, or repeal statutes and any administrative proposals to adopt, revise, or rescind administrative rules.
   7.  The Iowa finance authority, the department of natural resources, and the department of agriculture and land stewardship shall cooperate with the commission in providing the commission with all information necessary for the commission to carry out the provisions of this section.
    Sec. 127.  NEW SECTION.  466B.54  Clean water commission —— study.
   1.  The clean water commission, in cooperation with the department of agriculture and land stewardship, the department of natural resources, and the Iowa finance authority shall prepare and submit a clean water evaluation and expenditure report to the governor and general assembly by January 15, 2018.
   2.  The clean water evaluation and expenditure report shall include all of the following:
   a.  A description of current clean water programs and projects, and the expenditure of moneys appropriated to support those programs and projects. The report shall evaluate successes and failures of each program and project in meeting water quality objectives. The report may also recommend methods to improve the program.
   b.  A plan for allocating moneys in the expenditures account of the clean water fund created in section 466B.51. The plan shall include a formula which takes into account the extent to which moneys may be used for all of the following:
   (1)  Watersheds requiring immediate improved surface water quality.
   (2)  The establishment of infrastructure, conservation measures, and practices that reduce contributing nutrient loads, associated sediment, or contaminants from nonpoint sources to surface waters in a scientific, reasonable, and cost-effective manner.
   (3)  The administration of programs or projects in a manner that is consistent with the Iowa nutrient reduction strategy.
   (4)  The degree to which political subdivisions or stakeholders have demonstrated a willingness and have the resources to participate in programs or projects.
   (5)  The degree to which clean water programs can attract additional funding from private and public sources including federal funding.
   3.  The clean water evaluation and expenditure report shall include a detailed plan for consolidating all water quality and soil conservation initiatives and programs and associated projects administered by the department of agriculture and land stewardship, the department of natural resources, and the Iowa finance authority under the overall supervision of the commission. The plan shall include any legislative proposals to enact, amend, or repeal statutes and any administrative proposals to adopt, revise, or rescind administrative rules.
    Sec. 128.  NEW SECTION.  466B.55  Secretary of agriculture, treasurer of state, and auditor of state —— certifications.
   1.  By March 1 of each fiscal year, the secretary of agriculture, the treasurer of state, and the auditor of state shall meet to verify whether one or more commodity organizations are collecting a clean water assessment as described in section 466B.51. The secretary of agriculture shall prepare a certification for delivery to the Iowa administrative code editor for publication in the Iowa administrative bulletin.
   2.  By March 1 of each fiscal year, the secretary of agriculture, the treasurer of state, and the auditor of state shall together verify the total amount of moneys collected by all commodity organizations certified under subsection 1 during the preceding fiscal year. If a commodity organization was certified after the end of the preceding fiscal year, the commodity organization shall be deemed to have collected a clean water assessment at the rate in effect on the date of the commodity organization’s certification.
   3.  By April 1 of each fiscal year when the secretary of agriculture, the treasurer of state, and the auditor of state verify that during the preceding fiscal year twenty million dollars was collected by all commodity organizations under subsection 2, the secretary of agriculture shall prepare a certification for delivery to all of the following:
   a.  The director of revenue.
   b.  The administrative code editor who shall publish the certification in the Iowa administrative bulletin.
   c.  The Iowa Code editor.
   4.  This section is repealed on July 1 of the fiscal year in which the secretary of agriculture prepares and delivers the third certification as required in subsection 3.
DIVISION X
ADMINISTRATION

    Sec. 129.  NAME CHANGE TO REFERENDUM FOR DIRECT USE.  Nothing in this Act requires the department of agriculture and land stewardship or a commodity organization described in section 466B.51, as enacted in this Act, to conduct a referendum because of this Act’s reference to a referendum as a referendum for direct use.
EXPLANATION
The inclusion of this explanation does not constitute agreement with
the explanation’s substance by the members of the general assembly.
   This bill relates to agricultural commodity organizations representing producers of that commodity that are authorized to impose an excise tax or “assessment” (and commonly referred to as a “checkoff”) on the commodity when first sold by the producer to a first purchaser. The goal of the assessment is to fund promotional activities which involve market development, research, and education. The commodity organizations include the Iowa dairy industry commission or Iowa state dairy association (Code chapter 179), Iowa beef cattle producers association (Code chapter 181), Iowa sheep and wool promotion board (Code chapter 182), Iowa pork producers council or Iowa pork producers association (Code chapter 183A), Iowa egg council (Code chapter 184), the Iowa turkey marketing council (Code chapter 184A), the Iowa soybean association (Code chapter 185), and the Iowa corn promotion board (Code chapter 185C). The bill requires a commodity organization to establish a separate state assessment for clean water, if approved by a majority of its members at a referendum. The bill also requires commodity organizations to conduct a special referendum to increase the rate of the assessment for clean water. The rate of the state assessment is established by the governing body of the commodity organization not to exceed the assessment for direct use or national assessment or both. The referendum would be conducted in the same manner as an initial or special referendum conducted by the commodity organization under its specific Code chapter. The special assessment could be continued or terminated in the same manner as the commodity organization’s assessment for promotional activities. Moneys from the state assessment would be collected by the commodity organization and transferred to a newly created clean water fund.
   The bill establishes a clean water commission housed in the division of soil conservation and water quality of the department of agriculture and land stewardship. The commission is composed of nine voting members appointed by the governor, four legislative members who serve in a nonvoting, ex officio capacity, and persons appointed by the commodity organizations, who also serve in a nonvoting, ex officio capacity. Appointments are contingent on the commodity organization having approved the establishment of a state assessment for clean water to be transferred to the clean water fund. The purpose of the commission is to finance methods to improve surface water quality, including by reducing contributing contaminant loads to receiving surface waters and reducing soil erosion and sediment loss. The commission is responsible for overseeing the water quality initiative as administered by the division of soil conservation and water quality.
   Moneys collected from the state assessment are to be credited to the clean water fund which is under the supervision of the commission. The fund is composed of a general account, an assessment account, and an expenditures account. The fund’s general account includes moneys transferred from the constitutionally protected natural resources and outdoor recreation trust fund (Code section 461.31), moneys appropriated by the general assembly, and other moneys available to and obtained or accepted by the commission. Moneys collected from the state assessment are to be credited to the assessment account. The bill also includes an expenditures account which only includes moneys transferred from the general account and the assessment account for purposes of financing methods to improve surface water quality. Moneys transferred from the assessment account are to be used to reimburse the department of agriculture and land stewardship or a commodity organization for reasonable costs of conducting a referendum to determine if a state assessment for clean water is to be established, continued, or terminated. The commission can also apply to the executive council for moneys required to pay for reasonable costs of conducting a referendum. Moneys deposited into the expenditures account may also be used to pay refunds to producers who have paid the state assessment if the refund application has been approved by the commodity organization.
   The bill provides for possible progressive increases in state sales and use taxes. An increased amount must be credited to the natural resources and outdoor recreation trust fund according to a constitutional amendment (Article VII, section 10). The amount credited to the fund must be equal to the amount generated by an increase in the state sales tax rate occurring after the effective date of the constitutional amendment, not to exceed a rate of three-eighths of one percent (0.375). The state sales tax rate has not been increased since November 2, 2010, the date when the constitutional amendment was ratified. The bill provides that an increase of one-eighth of one percent in the sales tax is triggered each of three fiscal years when the secretary of agriculture, the treasurer of state, and the auditor of state certify that a total of $20 million in clean water assessments for that preceding year was collected by participating commodity organizations. The bill revises the allocations from the natural resources and outdoor recreation trust fund as set forth in statute (Code chapter 461). On July 1 of each fiscal year, an amount of moneys in the Code chapter 461 trust fund equal to the amount in the clean water fund’s assessment account is to be transferred to the clean water fund’s general account. The moneys remaining in the Code chapter 461 trust fund are to be allocated on a percentage basis as set forth in statute. 
   The commission, in cooperation with the department of agriculture and land stewardship, the department of natural resources, and the Iowa finance authority, must submit a report to the governor and general assembly by January 15, 2019, which includes a description of current clean water programs and projects and a detailed plan for consolidating all water quality and soil conservation initiatives and programs and associated projects administered by the department of agriculture and land stewardship, the department of natural resources, and the Iowa finance authority under the overall supervision of the commission.