Senate File 110 - Introduced SENATE FILE 110 BY BOLKCOM A BILL FOR An Act providing for a state assessment for water quality and 1 soil conservation imposed on agricultural commodities, 2 including establishing procedures for referendums to 3 establish, continue, or terminate the state assessment, the 4 transfer of moneys to the department of agriculture and land 5 stewardship, and the appropriation of moneys. 6 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 7 TLSB 1401XS (24) 87 da/rj
S.F. 110 DIVISION I 1 IOWA DAIRY INDUSTRY COMMISSION AND 2 IOWA STATE DAIRY ASSOCIATION 3 Section 1. Section 179.1, Code 2017, is amended by adding 4 the following new subsections: 5 NEW SUBSECTION . 01. “Assessment” means an excise tax on 6 the sale of milk which may include a state assessment for 7 direct use and a state assessment for water quality and soil 8 conservation. 9 NEW SUBSECTION . 2A. “Federal Act” means the Dairy Product 10 Stabilization Act of 1983, 7 U.S.C. §4501 et seq. 11 NEW SUBSECTION . 3A. “National assessment” means an excise 12 tax on the sale of milk imposed pursuant to the federal Act. 13 NEW SUBSECTION . 10. “Secretary” means the secretary of 14 agriculture. 15 Sec. 2. Section 179.1, subsection 2, Code 2017, is amended 16 to read as follows: 17 2. The term “commission” shall mean “Commission” means the 18 Iowa dairy industry commission created in section 179.2 . 19 Sec. 3. Section 179.2, subsections 4, 5, 6, and 7, Code 20 2017, are amended to read as follows: 21 4. a. When a national promotional order is established by 22 the United States department of agriculture pursuant to the 23 Dairy Product Stabilization Act of 1983 federal Act , collection 24 of the excise tax state assessment for direct use described in 25 section 179.5 shall be suspended for the period in which the 26 national order is in effect. The commission shall continue to 27 operate thereafter for only the period of time necessary to pay 28 refunds and disburse the funds moneys remaining in the dairy 29 industry fund for the purposes enumerated in administering 30 this chapter . Upon completion of these acts, the existence of 31 the Iowa dairy industry commission shall be suspended. The 32 secretary of agriculture shall certify the suspension of the 33 commission as of a date certain to the Iowa dairy industry 34 commission and the Iowa state dairy association. When the 35 -1- LSB 1401XS (24) 87 da/rj 1/ 99
S.F. 110 existence of the commission is suspended, the terms of office 1 being served by individual commissioners shall terminate. 2 b. The establishment of a national promotional order shall 3 not affect the imposition of a state assessment for water 4 quality and soil conservation established pursuant to section 5 179.13A. 6 5. When the national promotional order expires, the period 7 of suspension of the excise tax state assessment for direct use 8 established in section 179.5 shall terminate and the secretary 9 of agriculture shall take the steps necessary to collect that 10 excise tax state assessment and otherwise fulfill the duties of 11 the commission, except that of expending funds moneys collected 12 under the excise tax that state assessment , until those 13 duties can be resumed by the reactivated commission. When the 14 national promotional order expires, the period of suspension of 15 the commission shall terminate. The secretary of agriculture 16 shall call the first meeting of the reactivated commission. 17 Upon reactivation, the commission shall reimburse the secretary 18 of agriculture for expenses incurred in carrying out the duties 19 provided in this subsection . 20 6. When the national dairy promotion program expires and 21 the suspension of the Iowa dairy industry commission terminates 22 pursuant to subsection 5 , all first purchasers shall, in a 23 manner designed to reflect their proportionate contributions 24 to the national dairy promotion program in its most recently 25 completed fiscal year, nominate two resident producers for each 26 of the sixteen offices of the commission. The secretary of 27 agriculture shall then appoint one nominee from each set of 28 two nominees as commissioners of the reactivated Iowa dairy 29 industry commission. The secretary of agriculture shall 30 stagger the terms of the reactivated commission resulting in 31 as nearly as possible one third of the commissioners serving 32 for one year, one third of the commissioners serving for two 33 years, and one third of the commissioners serving for three 34 years. After the initial staggering of terms by the secretary, 35 -2- LSB 1401XS (24) 87 da/rj 2/ 99
S.F. 110 commissioners shall be appointed to three-year terms. 1 7. The establishment or expiration of a national 2 promotional order shall not affect the imposition of a state 3 assessment for water quality and soil conservation established 4 pursuant to section 179.13A. 5 7. 8. After the reactivated commission has been formed, 6 nominations for commissioners shall be made by first 7 purchasers in a manner designed to reflect their proportionate 8 contributions to the Iowa dairy industry commission in its most 9 recently completed fiscal year. 10 Sec. 4. Section 179.3, Code 2017, is amended by adding the 11 following new subsection: 12 NEW SUBSECTION . 10. To cooperate with the division of soil 13 conservation and water quality of the department of agriculture 14 and land stewardship in transferring moneys collected from the 15 state assessment for water quality and soil conservation to the 16 water quality and soil conservation fund created in section 17 466B.51. 18 Sec. 5. Section 179.4, Code 2017, is amended to read as 19 follows: 20 179.4 Expenditure of funds Use of moneys . 21 Funds collected through Moneys collected by the commission 22 from the excise tax are to state assessment for direct use 23 imposed pursuant to section 179.5 shall be used for purposes 24 of advertising and promotion, product, process, and nutrition, 25 dietetics, and physiology research, nutrition education, public 26 relations, research and development, and for other activities 27 that contribute to producer efficiency and productivity. 28 In addition, the commission shall use these funds moneys 29 to maintain existing markets, to make contributions to 30 organizations working toward the purposes of this section , 31 and to assist in the development of new or enlarged markets 32 for milk, both domestic and foreign. The primary purpose for 33 use of these funds moneys is to increase consumption of milk. 34 The commission may contract for advertising, publicity, sales 35 -3- LSB 1401XS (24) 87 da/rj 3/ 99
S.F. 110 promotion, research, and educational services the committee 1 commission deems appropriate to further the objectives of this 2 section . 3 Sec. 6. Section 179.5, Code 2017, is amended to read as 4 follows: 5 179.5 Excise tax State assessments —— administration of 6 moneys —— appropriation. 7 1. a. There is levied and imposed an excise tax a state 8 assessment for direct use on all producers within the state 9 at a rate of three-fourths of one percent of the gross value 10 of milk produced in the state and which may be continued by 11 special referendum as provided in section 179.13A . 12 b. There is imposed a state assessment for water quality 13 and soil conservation on all producers within the state at the 14 same rate as the state assessment for direct use described in 15 paragraph “a” , if the state assessment for water quality and 16 soil conservation is established and continued pursuant to 17 section 179.13A. 18 2. All taxes levied and The state assessment for direct 19 use and the state assessment for water quality and soil 20 conservation imposed under this chapter shall be deducted from 21 the sales price received by the producer and shall be collected 22 by the first purchaser, except as follows: 23 a. If the producer produces milk from cows and sells the 24 milk directly to the consumer, the taxes each state assessment 25 shall be remitted by that producer. 26 b. If the producer sells milk to a first purchaser outside 27 the state, the taxes are each state assessment is due and 28 payable by that producer before the shipment is made, except 29 that the commission may make agreements with extra state 30 purchasers for the keeping of records and the collection of the 31 taxes each state assessment as necessary to secure the payment 32 of the taxes each state assessment within the time fixed by 33 this chapter . 34 3. All taxes levied and The state assessment for direct 35 -4- LSB 1401XS (24) 87 da/rj 4/ 99
S.F. 110 use and the state assessment for water quality and soil 1 conservation if established and imposed under this chapter , and 2 any other contributions made to the dairy industry commission , 3 shall be paid to and collected by the commission within thirty 4 days after the end of the month during which the milk was 5 marketed. 6 4. The commission shall remit moneys collected from 7 the taxes state assessment for direct use and any other 8 contributions obtained by the commission to the treasurer of 9 the state each quarter, and at the same time shall render to 10 the director of the department of administrative services an 11 itemized and verified report showing the source from which 12 the taxes moneys collected from the state assessment for 13 direct use and voluntary contributions were obtained. All 14 taxes moneys collected from the state assessment for direct 15 use and voluntary contributions received, collected, and 16 remitted by the commission shall be placed in a special fund 17 by the treasurer of state and the director of the department 18 of administrative services, to be known as the “dairy industry 19 fund” to be used by the Iowa dairy industry commission for 20 the purposes set out in this chapter and to administer and 21 enforce the laws relative to this chapter . The department of 22 administrative services shall transfer moneys from the fund 23 to the commission for deposit into an account established 24 by the commission in a qualified financial institution. 25 The department shall transfer the moneys as provided in a 26 resolution adopted by the commission. However, the department 27 is only required to transfer moneys once during each day and 28 only during hours when the offices of the state are open. 29 Moneys deposited in the fund and transferred to the commission 30 as provided in this section are appropriated and shall be used 31 for the purpose of carrying out the provisions of this chapter . 32 5. The commission may deposit moneys collected from the 33 state assessment for water quality and soil conservation in 34 a qualified financial institution until transferred to the 35 -5- LSB 1401XS (24) 87 da/rj 5/ 99
S.F. 110 water quality and soil conservation fund created in section 1 466B.51. During the period when a national promotional order 2 is in effect, the Iowa state dairy association shall deposit 3 the moneys collected from that state assessment in a qualified 4 financial institution until transferred to the water quality 5 and soil conservation fund. If the state assessment for water 6 quality and soil conservation is terminated as provided in 7 section 179.13A, the remaining moneys collected from that 8 state assessment shall be immediately transferred to the water 9 quality and soil conservation fund. 10 6. The commission may require that the invoice also show the 11 total amount of any state assessment for direct use deducted 12 from the sales price. If a national assessment is being 13 collected, the Iowa state dairy association may require that 14 the invoice for the national assessment also show the total 15 amount of any national assessment, if permitted by federal law. 16 If a state assessment for water quality and soil conservation 17 is collected, the first purchaser shall furnish the producer 18 at the time of payment an invoice showing the total amount of 19 the state assessment for water quality and soil conservation 20 deducted from the sales price. 21 4. 7. a. A person from whom the excise tax provided in 22 this chapter a state assessment for direct use is collected 23 may, by application filed with the commission within thirty 24 days after the collection of the tax state assessment , have the 25 tax state assessment refunded to that person by the commission. 26 b. If a state assessment for direct use is imposed, a 27 person from whom a state assessment for water quality and 28 soil conservation is collected may file an application for a 29 refund with the commission. The application for a refund shall 30 allow the person to elect whether the refund is for the state 31 assessment for direct use or the state assessment for water 32 quality and soil conservation or both. The commission shall 33 not approve an application unless the application indicates the 34 election. The commission shall forward an approved application 35 -6- LSB 1401XS (24) 87 da/rj 6/ 99
S.F. 110 for a refund of the state assessment to the division of soil 1 conservation and water quality for payment. 2 c. If a national assessment is imposed and a refund of the 3 national assessment is authorized, a person from whom a state 4 assessment for water quality and soil conservation is collected 5 may file an application for a refund with the Iowa state dairy 6 association. The application shall to the extent allowed by 7 federal law allow the person to elect whether the refund is 8 for the national assessment or the state assessment for water 9 quality and soil conservation or both. The association shall 10 forward the approved application for a refund of the state 11 assessment for water quality and soil conservation to the 12 division of soil conservation and water quality for payment. 13 Sec. 7. Section 179.6, Code 2017, is amended to read as 14 follows: 15 179.6 Records of producers, first purchasers. 16 Every producer shipping milk to a first purchaser outside of 17 Iowa who is not by agreement with the commission collecting the 18 tax state assessment for direct use or the state assessment for 19 water quality and soil conservation imposed by this chapter , 20 and every first purchaser within the state, and every producer 21 distributing milk directly to the consumer, shall keep a 22 complete and accurate record of all milk produced or purchased 23 by the person during the period for which an excise tax levy a 24 state assessment is imposed under this chapter . The records 25 shall be in the form and contain the information prescribed by 26 the commission, shall be preserved by the person charged with 27 their making for a period of two years, and shall be offered 28 or submitted for inspection at any time upon written or oral 29 request by the commission or its duly authorized agent or 30 employee. 31 Sec. 8. Section 179.8, Code 2017, is amended to read as 32 follows: 33 179.8 Payment of expenses —— limitation. 34 1. No part of the expense incurred by the commission 35 -7- LSB 1401XS (24) 87 da/rj 7/ 99
S.F. 110 shall be paid out of moneys in the state treasury except 1 moneys transferred to the commission from the dairy industry 2 fund. Moneys transferred from the fund to the commission, as 3 provided in section 179.5 , shall be used for the payment of 4 all salaries, and other expenses necessary, to carry out the 5 provisions of this chapter . However, in no event shall the 6 total expenses exceed the total taxes amount collected from the 7 state assessment for direct use collected and transferred from 8 the fund to the commission. 9 2. No more than five percent of the excise tax collected 10 moneys collected from the state assessment for direct use and 11 received by the commission pursuant to section 179.5 shall be 12 utilized for administrative expenses of the commission. 13 Sec. 9. Section 179.9, Code 2017, is amended to read as 14 follows: 15 179.9 Investigations by commission. 16 The commission shall have the power to cause its authorized 17 agents to enter upon the premises of any person charged by this 18 chapter or by agreement with the commission with the collection 19 of the excise tax a state assessment for direct use or a state 20 assessment for water quality and soil conservation imposed by 21 this chapter , and to cause to be examined by any such agent any 22 books, records, documents, or other instruments bearing upon 23 the amount of moneys from such tax state assessment collected 24 or to be collected by such person; provided that the commission 25 has reasonable ground to believe that all moneys from the tax 26 state assessments herein levied has imposed have not been 27 collected, or if it has they have not been fully accounted for 28 as herein provided. 29 Sec. 10. Section 179.10, Code 2017, is amended to read as 30 follows: 31 179.10 Report. 32 The commission shall each year prepare and submit a report 33 summarizing the activities of the commission under this chapter 34 to the auditor of state and the secretary of agriculture . The 35 -8- LSB 1401XS (24) 87 da/rj 8/ 99
S.F. 110 report shall show all income, expenses, and other relevant 1 information concerning fees the state assessment for direct use 2 collected and expended under this chapter . The report shall 3 also show the collection and transfer of moneys received from 4 any state assessment for water quality and soil conservation 5 imposed under this chapter. 6 Sec. 11. Section 179.13, Code 2017, is amended to read as 7 follows: 8 179.13 Referendum Initial referendum . 9 1. a. At a time designated by the commission within 10 eighteen months after termination of the national promotional 11 order made pursuant to the Dairy Product Stabilization 12 federal Act of 1983 , the commission shall conduct a an initial 13 referendum under administrative procedures prescribed by the 14 department. 15 b. Upon signing a statement certifying to the department 16 that the person is a bona fide producer as defined in this 17 chapter , each producer is entitled to one vote in each initial 18 referendum. When the secretary is required to determine the 19 approval or disapproval of producers under this section , the 20 secretary shall consider the approval or disapproval of a 21 cooperative association of producers, engaged in a bona fide 22 manner in marketing milk, as the approval or disapproval of the 23 producers who are members of or contract with the cooperative 24 association of producers. If a cooperative association 25 elects to vote on behalf of its members, the cooperative 26 association shall provide each producer on whose behalf the 27 cooperative association is expressing approval or disapproval 28 with a description of the question presented in the initial 29 referendum together with a statement of the manner in which 30 the cooperative association intends to cast its vote on behalf 31 of the membership. The information shall inform the producer 32 of procedures to follow to cast an individual ballot if the 33 producer chooses to do so within the period of time established 34 by the secretary for casting ballots. The notification shall 35 -9- LSB 1401XS (24) 87 da/rj 9/ 99
S.F. 110 be made at least thirty days prior to the initial referendum 1 and shall include an official ballot. The ballots shall be 2 tabulated by the secretary and the vote of the cooperative 3 association shall be adjusted to reflect the individual votes. 4 c. The department shall count and tabulate the ballots 5 filed during the initial referendum within thirty days of the 6 close of the initial referendum. If from the tabulation the 7 department determines that a majority of the total number of 8 producers voting in the initial referendum favors the proposal, 9 the excise tax state assessment for direct use provided for in 10 this chapter shall be continued. The ballots cast pursuant 11 to this section constitute complete and conclusive evidence 12 for use in determinations made by the department under this 13 chapter . 14 2. The secretary may conduct a special referendum at any 15 time after the Iowa dairy industry commission is reactivated, 16 and shall hold a conduct a special referendum on request upon 17 receiving a petition of a representative group comprising ten 18 percent or more of the number of producers eligible to vote, 19 to determine whether the producers favor the termination or 20 suspension or termination of the excise tax state assessment 21 for direct use . The secretary shall suspend or terminate 22 collection of the excise tax within state assessment for direct 23 use no later than six months after the secretary determines 24 that suspension or termination of the excise tax state 25 assessment is favored by a majority of the producers voting 26 in the special referendum, and shall suspend or terminate the 27 excise tax state assessment in an orderly manner as soon as 28 practicable after the determination. 29 Sec. 12. NEW SECTION . 179.13A Referendums and special 30 questions —— establishment, increase, or termination of a state 31 assessment. 32 1. a. If a state assessment for direct use is established, 33 and upon receipt of a petition of producers that otherwise 34 complies with requirements to conduct an initial referendum 35 -10- LSB 1401XS (24) 87 da/rj 10/ 99
S.F. 110 under section 179.13, subsection 1, the secretary shall conduct 1 a special referendum to determine whether to establish a state 2 assessment for water quality and soil conservation. 3 b. Upon receipt of a petition of producers that otherwise 4 complies with requirements to conduct an initial referendum 5 under section 179.13, the secretary shall include as part of 6 the initial referendum conducted pursuant to section 179.13, 7 subsection 1, a separate special question whether to establish 8 a state assessment for water quality and soil conservation, if 9 the secretary determines the inclusion of the special question 10 is cost-effective or the petition demands inclusion. 11 c. The secretary shall conduct the special referendum 12 under this subsection or include the separate special question 13 as part of an initial or special referendum conducted under 14 section 179.13, subsection 1, in consultation with the 15 commission and which may be based on the same procedures for 16 conducting an initial referendum under section 179.13. 17 d. If the secretary determines that the establishment of 18 a state assessment for water quality and soil conservation is 19 favored by a majority of the producers voting in a special 20 referendum under this subsection or in an initial referendum 21 conducted under section 179.13, subsection 1, that includes 22 a special question as provided in paragraph “b” , the state 23 assessment shall commence on a date determined by the secretary 24 after consultation with the commission but not later than six 25 months after the date that the special or initial referendum 26 was conducted. 27 2. a. If a national assessment is being collected, and upon 28 receipt of a petition of producers that otherwise complies with 29 requirements to conduct an initial referendum under section 30 179.13, subsection 1, the secretary shall conduct a special 31 referendum to determine whether to establish a state assessment 32 for water quality and soil conservation. 33 b. Upon receipt of a petition of producers that otherwise 34 complies with requirements to conduct an initial referendum 35 -11- LSB 1401XS (24) 87 da/rj 11/ 99
S.F. 110 under section 179.13, subsection 1, the secretary shall include 1 as part of the referendum to establish a national assessment, 2 a separate special question whether to establish a state 3 assessment for water quality and soil conservation, if the 4 secretary determines the inclusion of the special question 5 complies with federal law and either is cost-effective or the 6 petition demands inclusion. 7 c. The secretary shall conduct the special referendum under 8 this subsection or include the special question as part of a 9 referendum to establish a national referendum in consultation 10 with the Iowa state dairy association and which may be based on 11 the same procedures for conducting an initial referendum under 12 section 179.13, subsection 1, or a referendum to establish a 13 national assessment. 14 d. If the secretary determines that the establishment of 15 a state assessment for water quality and soil conservation is 16 favored by a majority of the producers voting in a special 17 referendum conducted under paragraph “a” or a referendum 18 to establish a national assessment that includes a special 19 question as provided in paragraph “b” , the state assessment 20 shall commence on a date determined by the secretary after 21 consultation with the Iowa state dairy association but 22 not later than six months after the date that the special 23 referendum or referendum establishing a national assessment was 24 conducted. 25 3. a. If the rate of the national assessment has been 26 increased, and upon receipt of a petition of producers that 27 otherwise complies with requirements to conduct an initial 28 referendum under section 179.13, subsection 1, the secretary 29 shall conduct a special referendum to determine whether to 30 increase the rate of the state assessment for water quality and 31 soil conservation to equal the rate of the national assessment. 32 b. Upon receipt of a petition of producers that otherwise 33 complies with requirements to conduct an initial referendum 34 under section 179.13, subsection 1, the secretary shall include 35 -12- LSB 1401XS (24) 87 da/rj 12/ 99
S.F. 110 as part of a referendum to increase the rate of the national 1 assessment, a separate special question whether to increase 2 the rate of the state assessment for water quality and soil 3 conservation to equal the increase in the national assessment, 4 if the secretary determines the inclusion of the special 5 question complies with federal law and is either cost-effective 6 or the petition demands inclusion. 7 c. The secretary shall conduct the special referendum under 8 this subsection, or include the special question as part of a 9 referendum to increase the national assessment, in consultation 10 with the Iowa state dairy association and which may be based on 11 the same procedures for conducting an initial referendum under 12 section 179.13, subsection 1, or a referendum to increase the 13 rate of the national assessment. 14 d. If the national assessment is increased, and the 15 secretary determines that an increase in the state assessment 16 for water quality and soil conservation is favored by a 17 majority of the producers voting in a special referendum or 18 referendum to increase the rate of the national assessment, 19 the rate of the state assessment shall be increased on a date 20 determined by the secretary after consultation with the Iowa 21 state dairy association but not later than six months after the 22 date that the special referendum or referendum establishing a 23 national assessment was conducted. If a special referendum or 24 separate special question to increase the rate of the state 25 assessment for water quality and soil conservation does not 26 pass, the result of the vote shall not affect the existence or 27 length of the period when the state assessment is in effect. 28 4. a. If a state assessment for direct use is imposed, 29 and upon receipt of a petition of producers that otherwise 30 complies with requirements to conduct a special referendum 31 under section 179.13, subsection 2, the secretary shall conduct 32 a special referendum to determine whether to terminate the 33 state assessment for water quality and soil conservation. 34 b. Upon receipt of a petition of producers that otherwise 35 -13- LSB 1401XS (24) 87 da/rj 13/ 99
S.F. 110 complies with requirements to conduct a special referendum 1 under section 179.13, subsection 2, the secretary shall include 2 as part of a special referendum to suspend or terminate the 3 state assessment for direct use conducted pursuant to section 4 179.13, subsection 2, a separate special question whether to 5 terminate the state assessment for water quality and soil 6 conservation, if the secretary determines the inclusion of the 7 special question is cost-effective or the petition demands 8 inclusion. 9 c. The secretary shall conduct the special referendum under 10 this subsection or include the separate special question as 11 part of a special referendum conducted under section 179.13, 12 subsection 2, in consultation with the commission and which 13 may be based on the same procedures for conducting a special 14 referendum under section 179.13, subsection 2. 15 d. If the secretary determines that the termination of a 16 state assessment for water quality and soil conservation is 17 favored by a majority of the producers voting in a special 18 referendum under this subsection, or a special referendum 19 conducted under section 179.13, subsection 2, the state 20 assessment shall terminate on a date determined by the 21 secretary after consultation with the commission but not later 22 than six months after the date that the special or initial 23 referendum was conducted. The secretary shall terminate the 24 state assessment in an orderly manner as soon as practical. 25 5. The secretary shall terminate the state assessment for 26 water quality and soil and water conservation upon determining 27 that the state assessment for direct use and the national 28 assessment are terminated. The secretary shall terminate the 29 state assessment in an orderly manner as soon as practical. 30 DIVISION II 31 IOWA BEEF CATTLE PRODUCERS ASSOCIATION —— EXECUTIVE COMMITTEE 32 Sec. 13. Section 181.1, subsection 10, Code 2017, is amended 33 to read as follows: 34 10. “State assessment” means an excise tax on the sale of 35 -14- LSB 1401XS (24) 87 da/rj 14/ 99
S.F. 110 cattle imposed pursuant to this chapter which may include a 1 state assessment for direct use and a state assessment for 2 water quality and soil conservation . 3 Sec. 14. Section 181.2, Code 2017, is amended by adding the 4 following new subsection: 5 NEW SUBSECTION . 5. Cooperate with the division of soil 6 conservation and water quality of the department of agriculture 7 and land stewardship in transferring moneys collected from the 8 state assessment for water quality and soil conservation to the 9 water quality and soil conservation fund created in section 10 466B.51 and for being reimbursed for reasonable expenses 11 incurred in conducting an initial or special referendum to 12 establish, continue, or terminate a state assessment for water 13 quality and soil conservation. 14 Sec. 15. Section 181.7A, Code 2017, is amended to read as 15 follows: 16 181.7A Commencement of federal assessment —— suspension and 17 recommencement of state assessment —— rate. 18 1. Prior to the commencement of the collection of 19 the federal assessment, the executive committee may seek 20 certification as a qualified state beef council within the 21 meaning of the federal Act. 22 2. The executive committee shall suspend the state 23 assessment for direct use upon collection of the federal 24 assessment. The state assessment for direct use shall 25 recommence upon the earlier of the following: 26 a. The noncollection of the federal assessment. The 27 recommenced state assessment for direct use shall be imposed 28 for a four-year period. Its effective date shall be the first 29 date for which the federal assessment is not collected. 30 b. The passage of a special referendum pursuant to section 31 181.19 regardless of whether a federal assessment is being 32 collected. 33 3. The rate of the recommenced state assessment shall be the 34 same as the rate that was last in effect under section 181.19 35 -15- LSB 1401XS (24) 87 da/rj 15/ 99
S.F. 110 immediately prior to the suspension of the state assessment. 1 4. The state assessment for water quality and soil 2 conservation shall continue to be imposed during any period of 3 suspension of the state assessment for direct use so long as 4 the state assessment for water quality and soil conservation is 5 not terminated pursuant to section 181.19A. 6 Sec. 16. Section 181.8, Code 2017, is amended to read as 7 follows: 8 181.8 Executive committee —— entering premises —— examining 9 records. 10 The executive committee may authorize its agents to enter at 11 a reasonable time upon the premises of any purchaser charged 12 by this chapter with remitting the a state assessment for 13 direct use or a state assessment for water quality and soil 14 conservation to the executive committee , and to . The agents 15 may examine records and other instruments relating to the 16 collection of the a state assessment. However, the executive 17 committee must first have reasonable grounds to believe that 18 the a state assessment has not been remitted or fully accounted 19 for. 20 Sec. 17. Section 181.11, Code 2017, is amended to read as 21 follows: 22 181.11 Collection of state assessment assessments . 23 1. A state assessment for direct use or a state assessment 24 for water quality and soil conservation imposed as provided in 25 this chapter shall be levied and collected from the purchaser 26 on each sale of cattle at a rate provided in this chapter . The 27 state assessment for direct use or a state assessment for water 28 quality and soil conservation shall be imposed on any person 29 selling cattle and shall be deducted by the purchaser from the 30 price paid to the seller. The purchaser, at the time of the 31 sale, shall make and deliver to the seller a separate invoice 32 for each sale showing the names and addresses of the seller 33 and the purchaser, the number of cattle sold, and the date of 34 sale. The purchaser shall forward the state assessment for 35 -16- LSB 1401XS (24) 87 da/rj 16/ 99
S.F. 110 direct use and any state assessment for water quality and soil 1 conservation to the executive committee at a time prescribed by 2 the executive committee, but not later than the last day of the 3 month following the end of the prior reporting period in which 4 the cattle are sold. 5 2. The executive committee may enter into arrangements with 6 persons purchasing cattle outside of this state for remitting 7 the state assessment for direct use and any state assessment 8 for water quality and soil conservation by such purchasers. 9 Sec. 18. Section 181.12, Code 2017, is amended to read as 10 follows: 11 181.12 Remission of state assessment assessments on 12 application. 13 1. a. A person from whom a state assessment for direct 14 use is collected may, by written application filed with the 15 executive committee within ninety days after its collection, 16 have the amount remitted to the person by the executive 17 committee. 18 b. A person from whom a state assessment for water quality 19 and soil conservation is collected may, by written application 20 filed with the council as provided in paragraph “a” , have 21 the amount remitted to the person by the division of soil 22 conservation and water quality of the department of agriculture 23 and land stewardship. Within sixty days after its collection, 24 the council shall transmit any approved application to the 25 division for a refund payment. 26 2. The information that the a state assessment described 27 in subsection 1 is refundable and the address of the executive 28 committee to which application for a refund may be made shall 29 appear on the invoice of sale form supplied by the purchaser to 30 the producer near the area on the form which shows the amount 31 of the state assessment paid. 32 3. a. The executive committee shall furnish uniform 33 application for refund forms and make the refund forms readily 34 available to all producers. 35 -17- LSB 1401XS (24) 87 da/rj 17/ 99
S.F. 110 b. The form shall allow the applicant to elect whether 1 the refund is for the state assessment for direct use or the 2 state assessment for water quality and soil conservation or 3 both. The council shall not approve an application unless the 4 application indicates the election. A purchaser charged by 5 this chapter with remitting the a state assessment shall make 6 the forms readily available to all producers. 7 Sec. 19. Section 181.13, Code 2017, is amended to read as 8 follows: 9 181.13 Administration of moneys originating from state 10 assessment assessments —— appropriation. 11 1. a. All moneys, other than moneys from the state 12 assessments assessment for water quality and soil conservation 13 imposed under this chapter shall be paid to and collected 14 by the executive committee and deposited with the treasurer 15 of state in a separate cattle promotion fund which shall 16 be created by the treasurer of state. The department of 17 administrative services shall transfer moneys from the 18 fund to the executive committee for deposit into an account 19 established by the executive committee in a qualified 20 financial institution. The department shall transfer the 21 moneys as provided in a resolution adopted by the executive 22 committee. However, the department is only required to 23 transfer moneys once during each day and only during hours when 24 the offices of the state are open. From the moneys , other 25 than moneys from the state assessment for water quality and 26 soil conservation, collected, deposited, and transferred to 27 the executive committee, in accordance with the provisions 28 of this chapter , the executive committee shall first pay the 29 costs of referendums held pursuant to this chapter , the costs 30 of collection of such state assessments, and the expenses of 31 its agents. At least ten percent of the remaining moneys shall 32 be remitted to the association in proportions determined by 33 the executive committee, for use in a manner not inconsistent 34 with section 181.7 . The remaining moneys, with approval of a 35 -18- LSB 1401XS (24) 87 da/rj 18/ 99
S.F. 110 majority of the executive committee, shall be expended as the 1 executive committee finds necessary to carry out the provisions 2 and purposes of this chapter . However, in no event shall the 3 total expenses exceed the total amount transferred from the 4 fund for use by the executive committee. 5 2. b. All moneys deposited in the cattle promotion fund and 6 transferred to the executive committee pursuant to this section 7 are appropriated and shall be used for the administration 8 of this chapter and for the payment of claims based upon 9 obligations incurred in the performance of activities and 10 functions set forth in this chapter . 11 3. c. If the state assessment for direct use is suspended 12 as provided in section 181.7A or a continuance special 13 referendum to continue the state assessment for water quality 14 and soil conservation fails to pass as provided in section 15 181.19A , moneys remaining in the cattle promotion fund and 16 transferred to the executive committee shall continue to be 17 transferred and expended in accordance with the provisions of 18 this chapter until exhausted. 19 2. a. All moneys collected from the state assessment 20 for water quality and soil conservation imposed under this 21 chapter shall be paid to and collected by the council and 22 may be deposited in a qualified financial institution until 23 transferred to the water quality and soil conservation fund 24 created in section 466B.51. If the state assessment for water 25 quality and soil conservation is terminated as provided in 26 section 181.19A, the remaining moneys collected from that 27 state assessment shall be immediately transferred to the water 28 quality and soil conservation fund. 29 b. Except as otherwise expressly provided in this chapter, 30 moneys collected from the state assessment for water quality 31 and soil conservation shall not be used for any purpose 32 other than to be transferred to the water quality and soil 33 conservation fund created in section 466B.51. 34 Sec. 20. Section 181.19, Code 2017, is amended to read as 35 -19- LSB 1401XS (24) 87 da/rj 19/ 99
S.F. 110 follows: 1 181.19 Initial and special referendums. 2 1. The secretary shall, upon the petition of five hundred 3 producers, conduct an initial referendum to determine whether 4 a state assessment for direct use is to be established. If 5 established, the state assessment for direct use shall be 6 imposed , at a rate established by the executive committee 7 not to exceed one dollar per head on all cattle sold for any 8 purpose. 9 2. The secretary shall, upon the petition of five hundred 10 producers, conduct a special referendum to do any of the 11 following: 12 a. Determine whether a state assessment for direct use 13 already imposed shall be increased to a rate, established by 14 the executive committee, not to exceed one dollar per head on 15 all cattle sold for any purpose. 16 b. Determine whether a state assessment for direct use 17 suspended pursuant to section 181.7A is to be in addition to a 18 federal assessment. The state assessment for direct use shall 19 be imposed at a rate not to exceed one dollar per head on all 20 cattle sold for whatever purpose. 21 3. a. Upon receipt of a petition that otherwise complies 22 with the requirements of subsection 1, the secretary shall 23 conduct a special referendum to establish a state assessment 24 for water quality and soil conservation to be imposed in the 25 same manner as a state assessment for direct use. 26 b. The rate of the state assessment for water quality 27 and soil conservation shall be the same rate as the state 28 assessment for direct use in effect on the date that the 29 special referendum to impose a state assessment for water 30 quality and soil conservation passes. However, if a federal 31 assessment is imposed, the rate of the state assessment for 32 water quality and soil conservation shall be the same rate as 33 the federal assessment. If a state assessment for direct use 34 and a federal assessment are both being imposed, the rate of 35 -20- LSB 1401XS (24) 87 da/rj 20/ 99
S.F. 110 the state assessment for water quality and soil conservation 1 shall be the same as the rate of the state assessment for 2 direct use plus the rate of the federal assessment. 3 4. Upon receipt of a petition that otherwise complies with 4 the requirements of subsection 1, the secretary shall include 5 as part of the initial referendum a separate special question 6 whether to establish a state assessment for water quality 7 and soil conservation as described in subsection 3, if the 8 secretary determines the inclusion of the special question is 9 cost-effective or the petition demands inclusion. 10 5. a. Upon receipt of a petition that otherwise complies 11 with the requirements of subsection 2, the secretary shall 12 conduct a special referendum to change the rate of the state 13 assessment for water quality and soil conservation to equal the 14 rate of the state assessment for direct use and any federal 15 assessment as described in subsection 2. 16 b. Upon receipt of a petition that otherwise complies with 17 the requirements of subsection 2, the secretary shall include 18 as part of the special referendum conducted under subsection 19 2 a separate special question whether to change the rate of 20 the state assessment for water quality and soil conservation 21 to equal the rate of the state assessment for direct use and 22 any federal assessment as described in subsection 2, if the 23 secretary determines the inclusion of the special question is 24 cost-effective or the petition demands inclusion. 25 6. a. If a an initial referendum or a special referendum 26 described in this section passes, the secretary shall establish 27 an effective date to commence the state assessment for direct 28 use or the change in the rate of the state assessment for 29 direct use . However, the state assessment or the change in the 30 rate of the state assessment must be commenced within ninety 31 days from the date that the secretary determines that the 32 referendum has passed. 33 b. If a state assessment for water quality and soil 34 conservation is established or the rate of the state assessment 35 -21- LSB 1401XS (24) 87 da/rj 21/ 99
S.F. 110 for water quality and soil conservation changes under this 1 section, the secretary shall establish an effective date to 2 commence the state assessment or change the rate of the state 3 assessment in the same manner as provided in paragraph “a” . 4 4. 7. a. If a special referendum to increase the rate of 5 the state assessment for direct use does not pass, the result 6 of the special referendum shall not affect the existence or 7 length of the state assessment that is in effect on the date 8 that the special referendum was conducted. 9 b. If a special referendum, or a separate special question 10 that is part of a special referendum conducted under this 11 section, to change the rate of the state assessment for water 12 quality and soil conservation does not pass, the result of the 13 vote shall not affect the existence or period that the state 14 assessment is in effect. 15 8. A state assessment for water quality and soil 16 conservation is terminated on the date that the state 17 assessment for direct use is terminated, unless a federal 18 assessment is imposed. 19 Sec. 21. Section 181.19A, Code 2017, is amended to read as 20 follows: 21 181.19A Continuance referendum Special referendums —— 22 continuance or termination . 23 1. The secretary shall, upon the receipt of a petition 24 of producers, conduct a continuance special referendum to 25 determine whether a state assessment for direct use established 26 in section 181.19 should be renewed continued . The secretary 27 must receive the petition not less than one hundred fifty and 28 not more than two hundred forty days before the four-year 29 anniversary of a state assessment’s the effective date of 30 the state assessment for direct use . The petition must be 31 signed within that period by a number of producers equal to 32 or greater than two percent of the number of producers in 33 this state reported in the most recent United States census 34 of agriculture, requesting a special referendum to determine 35 -22- LSB 1401XS (24) 87 da/rj 22/ 99
S.F. 110 whether to continue the state assessment for direct use . 1 The special referendum shall be conducted not earlier than 2 thirty days before the four-year anniversary date of the state 3 assessment for direct use . 4 2. a. The secretary shall, upon receipt of a petition 5 of producers otherwise complying with the requirements of 6 subsection 1, conduct a special referendum to determine whether 7 the state assessment for water quality and soil conservation 8 established in section 181.19 should be continued. The special 9 referendum shall be conducted in the same manner as a special 10 referendum conducted under subsection 1. 11 b. The secretary shall, upon receipt of a petition complying 12 with the requirements of subsection 1, include as part of 13 a special referendum provided in subsection 1 a separate 14 special question whether a state assessment for water quality 15 and soil conservation should be continued, if the secretary 16 determines the inclusion of the separate special question is 17 cost-effective or the petition demands inclusion. 18 2. 3. a. If the secretary determines that a continuance 19 special referendum has passed under subsection 1 , the state 20 assessment for direct use shall continue in effect for four 21 additional years from the anniversary of its effective date. 22 b. If the secretary determines that a special referendum 23 or special question to continue the state assessment for water 24 quality and soil conservation has passed under subsection 2, 25 the state assessment shall be in effect until the anniversary 26 of the effective date of the state assessment for direct use 27 described in paragraph “a” . 28 3. 4. a. If the secretary determines that the a special 29 referendum to continue the state assessment for direct use has 30 not passed, the secretary and the executive committee shall 31 terminate the state assessment in an orderly manner as soon as 32 practicable after the determination. 33 b. If the secretary determines that a special referendum 34 to continue the state assessment for water quality and soil 35 -23- LSB 1401XS (24) 87 da/rj 23/ 99
S.F. 110 conservation has not passed, the secretary and the executive 1 committee shall terminate the state assessment in the same 2 manner as described in paragraph “a” . 3 c. A state assessment for water quality and soil 4 conservation is terminated on the date that the state 5 assessment for direct use is terminated, unless a federal 6 assessment is imposed. 7 5. a. Another If the secretary determines that a special 8 referendum to continue the state assessment for direct use has 9 not passed, another initial referendum conducted under section 10 181.19 to determine whether to establish a state assessment 11 for direct use shall not be held conducted for at least one 12 hundred eighty days from the date that the state assessment is 13 terminated. 14 b. If the secretary determines that a special referendum 15 to continue the state assessment for water quality and soil 16 conservation has not passed, another special referendum to 17 establish the state assessment or another initial or special 18 referendum that includes a separate special question to 19 establish the state assessment shall not be conducted for at 20 least one hundred eighty days from the date that the state 21 assessment was terminated. 22 4. 6. If no a valid petition for a continuance referendum 23 provided in this section is not received by the secretary 24 within the time period provided in this section , the state 25 assessment for direct use or the state assessment for water 26 quality and soil conservation shall continue in effect for four 27 additional years from the anniversary of its the effective date 28 of the initial referendum establishing the state assessment for 29 direct use . 30 DIVISION III 31 IOWA SHEEP AND WOOL PROMOTION BOARD 32 Sec. 22. Section 182.1, subsection 1, Code 2017, is amended 33 to read as follows: 34 1. “Assessment” means an excise tax on the sale of sheep 35 -24- LSB 1401XS (24) 87 da/rj 24/ 99
S.F. 110 or wool as provided in this chapter which may include an 1 assessment for direct use and a state assessment for water 2 quality and soil conservation . 3 Sec. 23. Section 182.1, Code 2017, is amended by adding the 4 following new subsection: 5 NEW SUBSECTION . 6A. “Qualified financial institution” means 6 a bank or credit union as defined in section 12C.1. 7 Sec. 24. Section 182.2, Code 2017, is amended to read as 8 follows: 9 182.2 Petition for initial referendum election . 10 Upon receipt of a petition signed by at least fifty producers 11 in each district requesting a an initial referendum by election 12 to determine whether to establish the board and to impose an 13 assessment for direct use , the secretary shall call a the 14 initial referendum to be conducted within sixty days following 15 receipt of the petition. 16 Sec. 25. Section 182.3, Code 2017, is amended to read as 17 follows: 18 182.3 Notice of initial referendum. 19 The secretary shall give notice of the initial referendum 20 on the question of whether to establish an Iowa sheep and wool 21 promotion board and to impose the an assessment for direct use 22 by publishing the notice for a period of not less than five 23 days in at least one newspaper of general circulation in the 24 state. The notice shall state the voting places, period of 25 time for voting, and other information deemed necessary by the 26 secretary. 27 A An initial referendum shall not be commenced until five 28 days after the last date of publication. 29 Sec. 26. Section 182.4, Code 2017, is amended to read as 30 follows: 31 182.4 Establishment of sheep and wool promotion board —— 32 assessment assessments —— termination. 33 1. Each producer who signs a statement certifying that 34 the producer is a bona fide producer is entitled to one vote 35 -25- LSB 1401XS (24) 87 da/rj 25/ 99
S.F. 110 in an initial referendum conducted under this section . At 1 the close of the initial referendum, the secretary shall 2 count and tabulate the ballots cast. If a majority of voters 3 favor establishing an Iowa sheep and wool promotion board and 4 imposing establishing an assessment for direct use , an Iowa 5 sheep and wool promotion the board and assessment shall be 6 established. The assessment for direct use shall be imposed 7 commencing not more than sixty days following the initial 8 referendum as determined by the Iowa sheep and wool promotion 9 board, and shall continue until the board and assessment for 10 direct use are terminated by a special referendum as provided 11 in conducted pursuant to subsection 2 4 . 12 2. a. If the board is in existence, and upon receipt of 13 a petition signed by at least twenty-five producers in each 14 district requesting a special referendum to determine whether 15 to establish a state assessment for water quality and soil 16 conservation, the secretary shall call the special referendum 17 to be conducted in the same manner as provided in subsection 1. 18 b. If a board is not in existence, and upon receipt of a 19 petition that complies with the requirements of paragraph “a” 20 the secretary shall include as part of the initial referendum 21 a separate special question whether to establish a state 22 assessment for water quality and soil conservation, if the 23 secretary determines the inclusion of the special question is 24 cost-effective or the petition demands inclusion. 25 c. If a majority of voters favor establishing the state 26 assessment for water quality and soil conservation, the state 27 assessment shall be imposed in the same manner and for the same 28 period as the assessment for direct use described in subsection 29 1. 30 3. a. If a majority of the voters do not favor establishing 31 an Iowa sheep and wool promotion a board and imposing the an 32 assessment for direct use , the board and an assessment shall 33 not be established, and the assessment shall not be imposed 34 and the board shall not be established until another initial 35 -26- LSB 1401XS (24) 87 da/rj 26/ 99
S.F. 110 referendum is held conducted under this chapter and a majority 1 of the voters favor establishing a board and imposing the an 2 assessment. If a an initial referendum fails, another initial 3 referendum shall not be held within conducted for at least 4 one hundred eighty days from the date of the last initial 5 referendum . 6 b. If a majority of the voters do not favor establishing a 7 state assessment for water quality and soil conservation, the 8 state assessment shall not be established until another special 9 referendum, or another separate special question that is part 10 of an initial referendum, is conducted under this chapter 11 and a majority of the voters favor establishing the state 12 assessment. If a special referendum or special question fails, 13 another special referendum or initial referendum which includes 14 a special question shall not be conducted within one hundred 15 eighty days from the date that the last such special referendum 16 or initial referendum was conducted. 17 2. 4. Upon receipt of a petition signed by at least 18 twenty-five producers in each district requesting a special 19 referendum election to determine whether to terminate the 20 establishment of the Iowa sheep and wool promotion board and 21 to terminate the imposition of the and the assessment for 22 direct use , the secretary shall call a special referendum to 23 be conducted within sixty days following the receipt of the 24 petition. The petitioners shall guarantee the payment of the 25 costs of a the special referendum held conducted under this 26 subsection . If the majority of the voters of a voting at the 27 special referendum do not favor termination, an additional 28 special referendum may be held conducted when the secretary 29 receives a petition signed by at least twenty-five producers in 30 each district. However, the additional referendum shall not be 31 held within conducted for at least one hundred eighty days from 32 the date of the last such special referendum . 33 5. a. Upon receipt of a petition that otherwise complies 34 with the requirements of subsection 4 requesting a special 35 -27- LSB 1401XS (24) 87 da/rj 27/ 99
S.F. 110 referendum election to determine whether to terminate the 1 establishment of the state assessment for water quality 2 and soil conservation, the secretary shall call a special 3 referendum to be conducted in the same manner as provided in 4 subsection 4. 5 b. Upon receipt of a petition that otherwise complies 6 with the requirements of subsection 4, the secretary shall 7 include as part of the special referendum conducted under that 8 subsection a separate special question whether to terminate the 9 state assessment for water quality and soil conservation, if 10 the secretary determines the inclusion of the special question 11 is cost-effective or the petition demands inclusion. 12 c. The petitioners shall guarantee the payment of the costs 13 of the special referendum conducted under this subsection. 14 d. If the majority of the voters of a special referendum 15 conducted under this subsection do not favor termination, 16 an additional special referendum may be conducted when 17 the secretary receives a petition complying with the same 18 requirements as described in this subsection. However, the 19 additional special referendum shall not be conducted for at 20 least one hundred eighty days from the date of the last such 21 special referendum. 22 6. A state assessment for water quality and soil 23 conservation is terminated on the date that the assessment for 24 direct use is terminated. The secretary shall terminate the 25 state assessment in an orderly manner as soon as practical. 26 Sec. 27. Section 182.11, Code 2017, is amended to read as 27 follows: 28 182.11 Purposes of board. 29 1. The purposes of the board shall be to: 30 1. a. Enter into contracts or agreements with or make 31 grants to recognized and qualified agencies, individuals, 32 or organizations for the development and carrying out of 33 research and education programs directed toward better and more 34 efficient production, marketing, and utilization of sheep and 35 -28- LSB 1401XS (24) 87 da/rj 28/ 99
S.F. 110 wool and their products. 1 2. b. Provide methods and means, including, but not limited 2 to, public relations and other promotion techniques for the 3 maintenance of present markets. 4 3. c. Assist in development of new or larger markets, both 5 domestic and foreign, for sheep and wool and their products. 6 2. The board shall cooperate with the division of soil 7 conservation and water quality of the department of agriculture 8 and land stewardship in doing all of the following: 9 a. Transferring moneys collected from the state assessment 10 for water quality and soil conservation to the water quality 11 and soil conservation fund created in section 466B.51. 12 b. Being reimbursed for reasonable expenses incurred in 13 conducting an initial or special referendum to establish, 14 continue, or terminate a state assessment for water quality and 15 soil conservation. 16 Sec. 28. Section 182.13, Code 2017, is amended to read as 17 follows: 18 182.13 Compensation —— meetings. 19 Members of the board may receive payment for their actual 20 expenses and travel in performing official board functions. 21 Payment shall be made from amounts collected from the 22 assessment for direct use . No A member of the board shall not 23 be a salaried employee of the board or any organization or 24 agency receiving funds moneys collected from the board. The 25 board shall meet at least once every three months, and at other 26 times it deems necessary. 27 Sec. 29. Section 182.13B, Code 2017, is amended to read as 28 follows: 29 182.13B Assessment rate rates . 30 1. a. If a majority of voters voting at a an initial 31 referendum conducted pursuant to section 182.4 approve the 32 establishment of an Iowa sheep and wool promotion the board and 33 the imposition of an assessment for direct use , the assessment 34 shall be imposed on wool and sheep at the following rates: 35 -29- LSB 1401XS (24) 87 da/rj 29/ 99
S.F. 110 a. (1) For wool, two cents imposed on each pound of wool 1 sold by a producer. 2 b. (2) For sheep, ten cents imposed on each head of sheep 3 sold by a producer. 4 b. If a majority of voters voting at a special referendum 5 conducted pursuant to section 182.4 approve the establishment 6 of a state assessment for water quality and soil conservation, 7 the state assessment shall be imposed on wool and sheep at the 8 same rates described in paragraph “a” . 9 2. a. Notwithstanding subsection 1 , upon a resolution 10 adopted by the board, the secretary shall call a special 11 referendum for voters to authorize increasing the assessment 12 rate of the assessment for direct use imposed on sheep as 13 provided in this section or increasing the assessment for 14 direct use imposed on sheep as provided in this section . 15 b. Notwithstanding subsection 1, upon a resolution adopted 16 by the board, the secretary shall call a special referendum 17 for voters to authorize increasing the rate of the state 18 assessment for water quality and soil conservation imposed 19 on sheep as provided in this section. The secretary shall 20 include as part of the special referendum to increase the rate 21 of the assessment for direct use a separate special question 22 whether to increase the rate of the state assessment for water 23 quality and soil conservation, if the secretary determines the 24 inclusion of the special question is cost-effective or the 25 resolution demands inclusion. 26 b. c. The special referendum to increase the rate of 27 the assessment for direct use or to increase the rate of the 28 state assessment for water quality and soil conservation shall 29 be conducted in the same manner as a an initial referendum 30 conducted upon receipt of a petition as provided in this 31 chapter section 182.4 , unless otherwise provided in the board’s 32 resolution. Only producers are eligible to vote in an election 33 the special referendum and each producer is entitled to one 34 vote. 35 -30- LSB 1401XS (24) 87 da/rj 30/ 99
S.F. 110 3. a. The special referendum to increase the rate of the 1 assessment for direct use conducted pursuant to subsection 2 2 shall allow a voter to cast a ballot for the following two 3 questions: 4 a. (1) For the first question, whether to authorize an 5 increase in the rate of assessment rate for direct use to 6 twenty-five cents imposed on each head of sheep. 7 b. (2) For the second question, if the first question is 8 approved by a majority of voters, whether to also authorize the 9 board to increase that assessment the rate of the assessment 10 for direct use by future resolution as provided in this 11 section . 12 b. The special referendum to increase the rate of the state 13 assessment for water quality and soil conservation shall be 14 conducted in the same manner as described in subsection 2 and 15 shall allow a voter to cast a ballot for the following two 16 questions: 17 (1) For the first question, whether to authorize an increase 18 in the rate of state assessment for water quality and soil 19 conservation to twenty-five cents imposed on each head of 20 sheep. 21 (2) For the second question, if the first question is 22 approved by a majority of voters, whether to also authorize 23 the board to increase that rate of state assessment for water 24 quality and soil conservation by future resolution as provided 25 in this section. 26 c. A state assessment for water quality and soil 27 conservation shall not be effective if the state assessment 28 does not equal the assessment for direct use. 29 4. a. If a majority of voters approve the first question to 30 increase the rate of the assessment for direct use as described 31 in subsection 3, paragraph “a” , subparagraph (1) , twenty-five 32 cents shall be imposed on each head of sheep sold by a producer 33 as effectuated by the board pursuant to section 182.12 . 34 b. If a majority of voters also approve increasing the rate 35 -31- LSB 1401XS (24) 87 da/rj 31/ 99
S.F. 110 of the state assessment for water quality and soil conservation 1 as described in subsection 3, paragraph “b” , subparagraph 2 (1), an additional twenty-five cents shall be imposed on each 3 head of sheep sold by a producer as effectuated by the board 4 pursuant to section 182.12. 5 5. a. If a majority of voters approve both the first and 6 second questions to increase the rate of the assessment for 7 direct use under subsection 3, paragraph “a” , subparagraphs (1) 8 and (2) , all of the following apply: 9 a. (1) Twenty-five The rate of the assessment for direct use 10 shall equal twenty-five cents shall be imposed on each head of 11 sheep sold by a producer as effectuated by the board pursuant 12 to section 182.12 . 13 b. (2) The board may adopt one or more resolutions to 14 further impose an increased rate of assessment rate for direct 15 use . 16 b. If a majority of voters also approve increasing the rate 17 of state assessment for water quality and soil conservation as 18 described in subsection 3, paragraph “b” , subparagraphs (1) and 19 (2), all of the following shall apply: 20 (1) The rate of the state assessment for water quality and 21 soil conservation shall equal twenty-five cents imposed on each 22 head of sheep sold by a producer. 23 (2) The board may adopt one or more resolutions to further 24 impose an increased rate of state assessment for water quality 25 and soil conservation so long as the rate equals the rate of 26 the assessment for direct use. 27 c. The increased assessment rate of the assessment for 28 direct use or the increased rate of the state assessment for 29 water quality and soil conservation shall be imposed on each 30 head of sheep sold by a producer as effectuated by the board 31 pursuant to section 182.12 . The board shall comply with all 32 of the following: 33 (1) The board must wait three or more years from the 34 effective date of the previous action imposing an increase in 35 -32- LSB 1401XS (24) 87 da/rj 32/ 99
S.F. 110 the rate of the assessment for direct use in order to adopt 1 a resolution. For the first increase, the effective date is 2 the date of the special referendum to increase the rate of 3 the assessment . For any subsequent increase in the rate of 4 assessment , the effective date is the date that the board last 5 adopted a resolution imposing an increased rate as provided in 6 this paragraph “b” subsection . 7 (2) The board must wait three or more years from the 8 effective date of the previous action imposing an increase 9 in the rate of the state assessment for water quality and 10 soil conservation in order to adopt a resolution. For the 11 first increase, the effective date is the date of the special 12 referendum to increase the rate of the state assessment for 13 water quality and soil conservation. For any subsequent 14 increase, the effective date is the date that the board last 15 adopted a resolution imposing an increased rate as provided in 16 this subsection. 17 (2) (3) The board shall not adopt a resolution until it 18 provides notice to producers of the proposed increase in the 19 assessment for direct use or the state assessment for water 20 quality and soil conservation and an opportunity for producers 21 to submit written or oral comments to the board regarding the 22 proposed increase. The board may provide notice by publication 23 in the same manner as provided in section 182.3 , publication on 24 its internet site, mail bearing a United States postal service 25 postmark, electronic transmission, or hand-delivery. 26 (3) (4) (a) The An increase in the assessment rate of the 27 assessment for direct use imposed by a resolution adopted by 28 the board must shall equal five cents. However, the assessment 29 rate of the assessment for direct use imposed by a resolution 30 of the board shall not equal more than fifty cents. 31 (b) An increase in the rate of the state assessment for 32 water quality and soil conservation imposed by resolution 33 adopted by the board shall equal five cents. However, the rate 34 of the state assessment for water quality and soil conservation 35 -33- LSB 1401XS (24) 87 da/rj 33/ 99
S.F. 110 imposed by resolution of the board shall not equal more than 1 fifty cents. 2 6. a. If a majority of voters do not authorize increasing 3 the rate of the assessment rate for direct use pursuant to a 4 special referendum conducted pursuant to under this section , 5 the assessment rate for the assessment for direct use shall be 6 the same as provided in subsection 1 , paragraph “a” . 7 b. If a majority of voters do not authorize increasing the 8 rate of the assessment for direct use pursuant to a special 9 referendum conducted under this section, the rate for the state 10 assessment for water quality and soil conservation shall be the 11 same as provided in subsection 1, paragraph “b” . 12 b. 7. Not more than one special referendum to establish an 13 assessment for direct use or to establish a state assessment 14 for water quality and soil conservation shall be conducted 15 pursuant to this section . 16 Sec. 30. Section 182.14, Code 2017, is amended to read as 17 follows: 18 182.14 Assessment Assessments . 19 1. An assessment for direct use or a state assessment for 20 water quality and soil conservation provided in this chapter 21 shall be imposed on the producer as follows: 22 a. If the producer sells wool or sheep to the first 23 purchaser within this state, the following shall apply: 24 (1) If the sale occurs at a concentration point, the 25 assessment shall be imposed at the time of delivery. The first 26 purchaser shall deduct the assessment or state assessment from 27 the price paid to the producer at the time of sale. 28 (2) If the sale does not occur at a concentration point, 29 the producer shall deduct the assessment or state assessment 30 from the amount received from the sale and shall forward the 31 amount deducted to the board within thirty days following each 32 calendar quarter. 33 b. If the producer sells, ships, or otherwise disposes of 34 wool or sheep to any person outside this state, the producer 35 -34- LSB 1401XS (24) 87 da/rj 34/ 99
S.F. 110 shall deduct the assessment or state assessment from the amount 1 received from the sale and shall forward the amount deducted 2 to the board. 3 2. The assessment for direct use or the state assessment 4 for water quality and soil conservation imposed by this section 5 shall be remitted to the board not later than thirty days 6 following each calendar quarter during which the assessment 7 amount or state assessment amount was deducted. 8 Sec. 31. Section 182.15, subsection 1, paragraph e, Code 9 2017, is amended to read as follows: 10 e. The rate of withholding and the total amount of the 11 assessment for direct use and the state assessment for water 12 quality and soil conservation withheld. The board may require 13 the invoice to separately indicate the amount withheld for the 14 assessment for direct use and the state assessment for water 15 quality and soil conservation. 16 Sec. 32. Section 182.16, Code 2017, is amended to read as 17 follows: 18 182.16 Deposit and disbursement Administration of funds 19 moneys . 20 1. The board shall deposit amounts moneys collected from the 21 assessment for direct use imposed pursuant to section 182.14 in 22 an account established pursuant to section 182.12 . Expenses 23 and disbursements incurred and made pursuant to this chapter 24 shall be made by voucher, draft, or check bearing the signature 25 of a person designated by majority vote of the board. 26 2. a. The board may deposit moneys collected from the 27 state assessment for water quality and soil conservation in a 28 qualified financial institution until transferred to the water 29 quality and soil conservation fund created in section 466B.51. 30 b. If the state assessment for water quality and soil 31 conservation is terminated as provided in section 182.4, the 32 remaining moneys collected from that state assessment shall 33 be immediately transferred to the water quality and soil 34 conservation fund. 35 -35- LSB 1401XS (24) 87 da/rj 35/ 99
S.F. 110 Sec. 33. Section 182.17, Code 2017, is amended to read as 1 follows: 2 182.17 Refunds. 3 1. a. A producer who has paid the assessment for direct use 4 may, by application in writing to the board, secure a refund of 5 all or part of the amount paid to the board . 6 b. A producer who has paid the state assessment for water 7 quality and soil conservation to the board may, by application 8 in writing to the board, secure a refund of all or part of 9 the amount paid to the board. The board shall transmit any 10 approved application for a refund to the division of soil 11 conservation and water quality of the department of agriculture 12 and land stewardship for payment. 13 2. The refund shall be payable only when the application has 14 been made to the board within sixty days after the deduction 15 has been made by the producer or within sixty days after the 16 remittance has been made by the first purchaser. 17 3. Each application for refund by a producer shall have an 18 attached proof indicating that the assessment for direct use 19 was paid. If a state assessment for water quality and soil 20 conservation is imposed, the attached proof shall also indicate 21 that the state assessment has also been paid. The attached 22 proof of the assessment paid may be in the form of a duplicate 23 or certified copy of the purchase invoice by the purchaser. 24 4. The application shall allow the applicant to elect 25 whether the refund is for the assessment for direct use or the 26 state assessment for water quality and soil conservation or 27 both. The board shall not approve an application unless the 28 application indicates the election. 29 Sec. 34. Section 182.18, Code 2017, is amended to read as 30 follows: 31 182.18 Use of moneys. 32 1. Moneys from the assessment for direct use collected 33 under this chapter are subject to audit by the auditor of state 34 and shall be used by the Iowa sheep and wool promotion board 35 -36- LSB 1401XS (24) 87 da/rj 36/ 99
S.F. 110 first for the payment of collection and refund expenses, second 1 for payment of the costs and expenses arising in connection 2 with conducting referendums, third for the purposes identified 3 in section 182.11 , and fourth for the cost of audits for 4 the auditor of state. Moneys of the board remaining after 5 a special referendum is held at which a majority of the 6 voters favor termination of the board and the assessment for 7 direct use shall continue to be expended in accordance with 8 this chapter until exhausted. The auditor of state may seek 9 reimbursement for the cost of the audit. 10 2. Except as expressly provided in this chapter, moneys 11 collected by the board from the state assessment for water 12 quality and soil conservation shall not be used for any purpose 13 other than to be transferred to the water quality and soil 14 conservation fund created in section 466B.51. 15 2. 3. The board shall not engage in any political activity, 16 and it shall be a condition of any allocation of funds that 17 any organization receiving funds shall not expend the funds on 18 political activity or on any attempt to influence legislation. 19 Sec. 35. Section 182.22, Code 2017, is amended to read as 20 follows: 21 182.22 Purchasers outside Iowa. 22 The secretary may enter into arrangements with first 23 purchasers from outside Iowa for payment of the assessment for 24 direct use and the state assessment for water quality and soil 25 conservation . 26 DIVISION IV 27 IOWA PORK PRODUCERS COUNCIL 28 IOWA PORK PRODUCERS ASSOCIATION 29 Sec. 36. Section 183A.1, subsection 1, Code 2017, is amended 30 to read as follows: 31 1. “Assessment” means an excise tax on the sale of porcine 32 animals as provided in this chapter which may include an 33 assessment for direct use and a state assessment for water 34 quality and soil conservation . 35 -37- LSB 1401XS (24) 87 da/rj 37/ 99
S.F. 110 Sec. 37. Section 183A.1, Code 2017, is amended by adding the 1 following new subsection: 2 NEW SUBSECTION . 4A. “National assessment” means an excise 3 tax on the sale of porcine animals imposed pursuant to the Pork 4 Promotion Act. 5 Sec. 38. Section 183A.1, subsection 7, Code 2017, is amended 6 to read as follows: 7 7. “Pork Promotion Act” means the federal Pork Promotion, 8 Research, and Consumer Information Act of 1985 , 7 U.S.C. §4801 9 et seq . 10 Sec. 39. Section 183A.5, subsection 1, paragraph i, Code 11 2017, is amended to read as follows: 12 i. Receive, administer, disburse and account for, in 13 addition to the funds moneys received from the assessment for 14 direct use and the state assessment for water quality and soil 15 conservation provided in this chapter , other funds moneys 16 voluntarily contributed to the council for the purpose of 17 promoting the pork industry. 18 Sec. 40. Section 183A.5, Code 2017, is amended by adding the 19 following new subsection: 20 NEW SUBSECTION . 4. The council shall cooperate with 21 the division of soil conservation and water quality of the 22 department of agriculture and land stewardship in doing all of 23 the following: 24 a. Transferring moneys collected from the state assessment 25 imposed as a result of a special referendum conducted pursuant 26 to section 183A.9 to the water quality and soil conservation 27 fund created in section 466B.51. 28 b. Being reimbursed for reasonable expenses incurred in 29 conducting an initial or special referendum to establish, 30 continue, or terminate a state assessment for water quality and 31 soil conservation. 32 Sec. 41. Section 183A.6, Code 2017, is amended to read as 33 follows: 34 183A.6 Assessment Assessments . 35 -38- LSB 1401XS (24) 87 da/rj 38/ 99
S.F. 110 1. The council shall make impose an assessment for direct 1 use of not less than point zero zero two nor more than point 2 zero zero three of the gross sale price of all porcine animals. 3 The assessment for direct use shall be point zero zero two five 4 of the gross sale price of porcine animals until consent to 5 an assessment has been given through the initial referendum 6 referred to in this chapter . After approval of the initial 7 referendum, the rate of assessment for direct use shall be 8 determined established by the council. 9 2. a. If an assessment for direct use is imposed under 10 subsection 1, the council shall impose a state assessment for 11 water quality and soil conservation if approved at a special 12 referendum conducted pursuant to section 183A.9. 13 b. If a national assessment is imposed under section 14 183A.9A, the Iowa pork producers association shall impose a 15 state assessment for water quality and soil conservation if 16 approved at a special referendum conducted pursuant to section 17 183A.9. 18 3. a. The assessment for direct use and the state 19 assessment for water quality and soil conservation shall be 20 made at the time of delivery of the porcine animals for sale, 21 and shall be deducted by the first purchaser from the price 22 paid to the seller. The first purchaser, at the time of sale, 23 shall make and deliver to the seller an invoice for each 24 purchase showing the names and addresses of the seller and 25 the first purchaser, the number and kind of porcine animals 26 sold, the date of sale, and the assessment for direct use, and 27 any state assessment for water quality and soil conservation, 28 made on the sale. The council may require the invoice to 29 separately indicate the amount withheld for the assessment for 30 direct use and the state assessment for water quality and soil 31 conservation. 32 b. Assessments An assessment for direct use and the state 33 assessment for water quality and soil conservation shall be 34 paid to the Iowa pork producers council or its designated agent 35 -39- LSB 1401XS (24) 87 da/rj 39/ 99
S.F. 110 by first purchasers at a time prescribed by the council, but 1 not later than the last day of the month following the month in 2 which the animals were purchased. 3 4. If a national assessment is imposed pursuant to section 4 183A.9A, and a state assessment for water quality and soil 5 conservation is imposed under section 183A.9, the Iowa pork 6 producers association shall impose and collect the state 7 assessment for water quality and soil conservation in the same 8 manner as the assessment for direct use set forth in subsection 9 3. However, the Iowa pork producers association may impose 10 and collect the state assessment based on procedures for the 11 national assessment as set forth in the Pork Promotion Act. 12 The invoice may correspond to any invoice required by the Pork 13 Promotion Act. 14 Sec. 42. Section 183A.7, Code 2017, is amended to read as 15 follows: 16 183A.7 Administration of moneys —— appropriation. 17 1. a. Assessments An assessment for direct use imposed 18 under this chapter pursuant to section 183A.6 and paid to and 19 collected by the Iowa pork producers council shall be deposited 20 in the pork promotion fund which is established in the office 21 of the treasurer of state. The department of administrative 22 services shall transfer moneys from the pork promotion fund 23 to the council for deposit into an account established by the 24 council in a qualified financial institution. The department 25 shall transfer the moneys as provided in a resolution adopted 26 by the council. However, the department is only required to 27 transfer moneys once during each day and only during hours when 28 the offices of the state are open. 29 2. b. All moneys deposited in the pork promotion fund and 30 transferred to the council as provided in this section are 31 appropriated and shall be used for the administration of this 32 chapter and for the payment of claims based upon obligations 33 incurred in the performance of activities and functions set 34 forth in this chapter . 35 -40- LSB 1401XS (24) 87 da/rj 40/ 99
S.F. 110 3. c. From the moneys collected, deposited, and transferred 1 to the council as provided in this chapter , the council shall 2 first pay the costs of referendums held pursuant to this 3 chapter . Of the moneys remaining, at least twenty-five percent 4 shall be remitted to the national pork producers council and 5 at least fifteen percent shall be remitted to the Iowa pork 6 producers association, in the proportion the committee council 7 determines, for use by recipients in a manner not inconsistent 8 with market development as defined in section 183A.1 . Moneys 9 remaining shall be spent as found necessary by the council to 10 further carry out the provisions and purposes of this chapter . 11 4. d. However, in In no event shall the total expenses 12 exceed the total amount of moneys transferred from the pork 13 promotion fund for use by the council. 14 2. a. Moneys collected from a state assessment for water 15 quality and soil conservation by the council may be deposited 16 in a qualified financial institution and shall be transferred 17 to the water quality and soil conservation fund created in 18 section 466B.51. 19 b. If a national assessment is imposed pursuant to section 20 183A.9A, moneys from the state assessment for water quality 21 and soil conservation collected by the Iowa pork producers 22 association shall be transferred to the water quality and soil 23 conservation fund created in section 466B.51. 24 c. The Iowa pork producers association shall maintain 25 separate accounts for moneys collected from the national 26 assessment and the state assessment for water quality and soil 27 conservation. 28 d. The Iowa pork producers association shall adopt rules 29 as necessary to administer this subsection and other sections 30 in this chapter which directly or indirectly relate to this 31 subsection. 32 Sec. 43. Section 183A.8, Code 2017, is amended to read as 33 follows: 34 183A.8 Refund of assessment assessments . 35 -41- LSB 1401XS (24) 87 da/rj 41/ 99
S.F. 110 1. A producer from whom the an assessment for direct use or 1 a state assessment for water quality and soil conservation has 2 been deducted , upon is entitled to receive a refund upon filing 3 a written application filed with the council within thirty days 4 after its collection , shall have that amount refunded by the 5 council . 6 2. a. Application If an assessment for direct use or an 7 assessment for direct use and any state assessment for water 8 quality and soil conservation are imposed, application forms 9 shall be given by the council to each first purchaser when 10 requested and the first purchaser shall make the applications 11 available to any producer. 12 b. Each application for a refund by a producer shall 13 have attached a proof of assessment for direct use deducted. 14 If the assessment for direct use and state assessment for 15 water quality and soil conservation are imposed, the attached 16 proof shall indicate the amount of the assessment and the 17 amount of the state assessment deducted. The proof of the 18 assessment for direct use and any state assessment for water 19 quality and soil conservation deducted shall be in the form of 20 the original or a copy of the purchase invoice by the first 21 purchaser. The application shall allow the applicant to elect 22 whether the refund is for the assessment for direct use or the 23 state assessment for water quality and soil conservation or 24 both. The council shall not approve an application unless the 25 application indicates the election. 26 3. The council shall have no not more than thirty days from 27 the date the application for a refund is received to remit do 28 all of the following: 29 a. Remit the amount of the refund of an assessment for 30 direct use to the producer. 31 b. Submit an approved application for the refund of a 32 state assessment for water quality and soil conservation to 33 the division of soil conservation and water quality of the 34 department of agriculture and land stewardship which shall 35 -42- LSB 1401XS (24) 87 da/rj 42/ 99
S.F. 110 remit the amount of the refund to the producer. 1 4. If a national assessment is established pursuant to 2 section 183A.9A and a state assessment for water quality and 3 soil conservation is established pursuant to section 183A.9, 4 the producer shall file a written application with the Iowa 5 pork producers association in lieu of the council in the same 6 manner as provided in subsection 1 and the Iowa pork producers 7 association shall make applications available to first 8 purchasers as provided in subsection 2. However, the Iowa 9 pork producers association may provide for filing applications 10 for a refund based on any applicable procedures set forth in 11 the Pork Promotion Act. In any case, the Iowa pork producers 12 association must transfer approved applications for refunds 13 to the division of soil conservation and water quality of the 14 department of agriculture and land stewardship for payment to 15 producers in the same manner as described in subsection 3. 16 Sec. 44. Section 183A.9, Code 2017, is amended to read as 17 follows: 18 183A.9 Referendum Initial and special referendums —— 19 assessments . 20 1. At a time designated by the council within eighteen 21 months after the termination of the collection of assessments 22 the national assessment imposed under the Pork Promotion Act, 23 the secretary shall conduct an initial referendum under to 24 establish an Iowa pork producers council and an assessment for 25 direct use. The referendum shall be conducted according to 26 administrative procedures prescribed adopted by the department 27 of agriculture and land stewardship. 28 2. If an assessment for direct use is established and upon 29 receipt of a request of ten percent or more of the number 30 of producers eligible to vote, the secretary shall conduct a 31 special referendum to determine whether producers favor the 32 establishment of a state assessment for water quality and soil 33 conservation. The special referendum shall be conducted in 34 the same manner as an initial referendum conducted pursuant 35 -43- LSB 1401XS (24) 87 da/rj 43/ 99
S.F. 110 to subsection 1. The rate of the state assessment for water 1 quality and soil conservation shall be equal to the rate of the 2 assessment for direct use established pursuant to an initial 3 referendum described in section 183A.6. 4 3. Upon receipt of a petition that otherwise complies with 5 the requirements of subsection 2, the secretary may in lieu of 6 conducting a special referendum include as part of the initial 7 referendum a separate special question whether to establish 8 a state assessment for water quality and soil conservation, 9 if the secretary determines it to be cost-effective or the 10 petition demands it. 11 2. 4. Upon signing a statement certifying to the secretary 12 that the person is a bona fide producer as defined in this 13 chapter , each producer is entitled to one vote in each initial 14 or special referendum. The secretary shall determine the 15 qualification of producers under this section . 16 3. 5. The secretary shall count and tabulate the ballots 17 filed during the initial or special referendum within thirty 18 days of the close of the referendum. If from the tabulation 19 the secretary determines that a majority of the total number 20 of producers voting in the initial referendum favors the 21 establishment of the assessment for direct use , the assessment 22 provided for in the referendum shall be levied imposed . If 23 from the tabulation the secretary determines that a majority 24 of the total number of producers voting in the initial or 25 special referendum favors the establishment of the state 26 assessment for water quality and soil conservation, the state 27 assessment shall be imposed. The ballots cast pursuant to this 28 section constitute complete and conclusive evidence for use in 29 determinations made by the secretary under this chapter . 30 4. 6. a. The secretary shall hold subsequent referendums 31 conduct a special referendum on request of receipt of a 32 petition signed by ten percent or more of the number of 33 producers eligible to vote, to determine whether the producers 34 favor the termination or any of the following: 35 -44- LSB 1401XS (24) 87 da/rj 44/ 99
S.F. 110 (1) The suspension of the assessment for direct use . 1 (2) The termination of the assessment for direct use and 2 the state assessment for water quality and soil conservation, 3 if established. 4 b. The secretary shall suspend or terminate collection 5 of the assessment for direct use within six months after the 6 secretary determines that suspension or termination of the 7 assessment for direct use is favored by a majority of the 8 producers voting in the special referendum , and . The secretary 9 shall terminate the assessment for direct use in an orderly 10 manner as soon as practicable after the determination. 11 7. a. The secretary shall conduct a special referendum on 12 receipt of a petition of producers otherwise complying with the 13 requirements in subsection 6 to conduct a special referendum 14 to terminate the state assessment for water quality and soil 15 conservation. 16 b. Upon receipt of a petition that otherwise complies 17 with the requirements of subsection 6, the secretary shall 18 include as part of the special referendum conducted under that 19 subsection a separate special question whether to terminate the 20 state assessment for water quality and soil conservation, if 21 the secretary determines the inclusion of the separate special 22 question is cost-effective or the petition demands inclusion. 23 8. The secretary shall terminate the state assessment for 24 water quality and soil conservation in the same manner as 25 provided in subsection 6, upon determining that the council 26 is abolished, the assessment for direct use is not being 27 collected, and the national assessment is not being collected. 28 Sec. 45. Section 183A.9A, Code 2017, is amended to read as 29 follows: 30 183A.9A Suspension during national order. 31 1. The terms of all voting members serving on the council on 32 January 31, 1986 , terminate at the time provided in subsection 33 2 . 34 2. a. On the date of the commencement of the collection 35 -45- LSB 1401XS (24) 87 da/rj 45/ 99
S.F. 110 of assessments a national assessment under the Pork Promotion 1 Act, the collection of the assessments assessment for direct 2 use under section 183A.6 shall be suspended. The council shall 3 continue to operate after suspension until all refunds are paid 4 and all funds moneys remaining in the pork promotion fund, less 5 a reserve for future refunds, are disbursed for the purposes 6 enumerated in this chapter . Notwithstanding section 183A.7 , 7 the council need not retain a reserve for future referendums. 8 Upon completion of these acts, the existence of the Iowa pork 9 producers council is suspended. The secretary of agriculture 10 shall certify the suspension of the council as of a date 11 certain to the Iowa pork producers council and the Iowa pork 12 producers association. When the existence of the council is 13 suspended, the terms of office of council members terminate. 14 b. On the date of the commencement of the collection of 15 the national assessment under the Pork Promotion Act, the Iowa 16 pork producers association shall assume collection of the 17 state assessment for water quality and soil conservation under 18 section 183A.9. 19 3. a. If the rate of the national assessment has changed, 20 and upon receipt of a petition that otherwise complies 21 with requirements for submitting a petition to suspend or 22 terminate an assessment for direct use under section 183A.9, 23 the secretary shall conduct a special referendum to determine 24 whether to change the rate of the state assessment for water 25 quality and soil conservation to equal the rate of the national 26 assessment. 27 b. Upon receipt of a petition that otherwise complies with 28 requirements for submitting a petition to suspend or terminate 29 an assessment for direct use under section 183A.9, the 30 secretary shall include as part of a referendum to change the 31 rate of the national assessment, a separate special question 32 whether to change the rate of the state assessment for water 33 quality and soil conservation to equal the increase in the 34 national assessment, if the secretary determines the inclusion 35 -46- LSB 1401XS (24) 87 da/rj 46/ 99
S.F. 110 of the special question complies with federal law and either it 1 is cost-effective or the petition demands inclusion. 2 c. If the national assessment is changed, and the secretary 3 determines that a change in the state assessment for water 4 quality and soil conservation is favored by a majority of 5 the producers voting in a special referendum or separate 6 special question as part of a referendum to change the rate 7 of the national assessment, the rate of the state assessment 8 shall be changed on a date determined by the secretary after 9 consultation with the Iowa pork producers association but 10 not later than six months after the date that the special 11 referendum or referendum was conducted. 12 3. 4. On the date of the termination of the collection of 13 assessments the national assessment under the Pork Promotion 14 Act, the period of suspension of the assessments assessment for 15 direct use under subsection 2 terminates. The secretary shall 16 collect moneys from the assessments assessment for direct use 17 under section 183A.6 and the state assessment for water quality 18 and soil conservation under section 183A.9 until this duty can 19 be resumed by the reactivated council. The secretary shall 20 deposit moneys collected from the assessment for direct use in 21 the pork promotion fund. The secretary shall transfer moneys 22 collected from the state assessment for water quality and soil 23 conservation to the water quality and soil conservation fund 24 created in section 466B.51. 25 4. 5. On the date of the termination of the collection of 26 assessments the national assessment under the Pork Promotion 27 Act, the period of suspension of the council under subsection 2 28 terminates. Within sixty days from this date, the secretary 29 shall appoint voting members to the council. For purposes of 30 section 183A.3 , a voting member so appointed is deemed not to 31 have served a previous consecutive term. The terms of office 32 of voting members of the initial reactivated council shall be 33 determined by lot, but members from the same district shall 34 not serve the same terms. As nearly as possible one-third of 35 -47- LSB 1401XS (24) 87 da/rj 47/ 99
S.F. 110 the voting members shall serve for one year, one-third of the 1 voting members shall serve for two years, and one-third of the 2 voting members shall serve for three years. Subsequent voting 3 members shall be appointed pursuant to section 183A.2 . 4 5. 6. The secretary shall call the first meeting of the 5 reactivated council. Upon reactivation, the council shall 6 reimburse the secretary for expenses incurred in carrying out 7 the duties provided in this section . 8 7. The state recognizes the Iowa pork producers association 9 as a state association under the Pork Promotion Act. For 10 purposes of this chapter, “association” shall include a 11 successor state association or other state association that 12 administers the national assessment in Iowa. 13 8. If a state assessment for water quality and soil 14 conservation is established or continued pursuant to sections 15 183A.9 and 183A.9A, the Iowa pork producers association shall 16 administer the state assessment for the period that the Pork 17 Promotion Act is in effect, unless the state assessment is 18 terminated under section 183A.9. 19 9. The Iowa pork producers association shall cooperate with 20 the division of soil conservation and water quality of the 21 department of agriculture and land stewardship in doing all of 22 the following: 23 a. Transferring moneys from the state assessment for water 24 quality and soil conservation to the water quality and soil 25 conservation fund created in section 466B.51. 26 b. Being reimbursed for reasonable expenses incurred in 27 conducting an initial or special referendum to establish, 28 continue, or terminate a state assessment for water quality and 29 soil conservation. 30 DIVISION V 31 IOWA EGG COUNCIL 32 Sec. 46. Section 184.1, subsection 1, Code 2017, is amended 33 to read as follows: 34 1. “Assessment” means an excise tax on the sale of eggs as 35 -48- LSB 1401XS (24) 87 da/rj 48/ 99
S.F. 110 provided in this chapter which may include an assessment for 1 direct use and a state assessment for water quality and soil 2 conservation . 3 Sec. 47. Section 184.2, Code 2017, is amended to read as 4 follows: 5 184.2 Establishment of Iowa egg council and assessment 6 assessments . 7 1. The secretary shall call and the department shall 8 conduct a an initial referendum upon the department’s receipt 9 of a petition for direct use which is signed by at least 10 twenty producers requesting a an initial referendum to 11 determine whether to establish an Iowa egg council and to 12 impose establish an assessment for direct use to be imposed as 13 provided in section 184.3 . 14 2. a. If the council has been established, the secretary 15 shall call and the department shall conduct a special 16 referendum upon the department’s receipt of a petition that 17 otherwise complies with subsection 1 calling for a state 18 assessment for water quality and soil conservation to be 19 imposed as provided in section 184.3. 20 b. Upon receipt of a petition that otherwise complies with 21 subsection 1, the secretary may in lieu of conducting a special 22 referendum include as part of the initial referendum a separate 23 special question whether to establish a state assessment for 24 water quality and soil conservation to be imposed as provided 25 in section 184.3, if the secretary determines the inclusion of 26 the special question is cost-effective or the petition demands 27 inclusion. 28 3. The initial referendum or a special referendum described 29 in this section shall be conducted within sixty days following 30 receipt of the petition. The petitioners shall guarantee 31 payment of the cost of the initial referendum or special 32 referendum by providing evidence of financial security as 33 required by the department. 34 2. 4. The department shall give notice of the initial 35 -49- LSB 1401XS (24) 87 da/rj 49/ 99
S.F. 110 referendum on the question whether to establish a council and 1 to impose an assessment or special referendum described in this 2 section by publishing the notice for a period of not less than 3 five days in at least one newspaper of general circulation in 4 the state. The notice shall state the voting places, period 5 of time for voting, and other information deemed necessary by 6 the department. A An initial referendum or special referendum 7 shall not be commenced until five days after the last date of 8 publication. 9 3. a. 5. Each producer who signs a statement certifying 10 that the producer is a bona fide producer shall be an eligible 11 voter under this section . An eligible voter is entitled to 12 cast one vote in each initial referendum or special referendum 13 conducted under this section . 14 b. 6. At the close of the initial referendum or special 15 referendum , the secretary shall count and tabulate the ballots 16 cast. 17 (1) 7. a. If a majority of eligible voters approve 18 establishing an Iowa egg a council and imposing an assessment 19 for direct use , a the council and the assessment shall be 20 established, and an the assessment shall be imposed , commencing 21 not more than sixty days following the initial referendum as 22 determined by the council and shall continue until eligible 23 voters voting in a special referendum held conducted pursuant 24 to section 184.5 vote to abolish the council and terminate the 25 imposition of the assessment for direct use . 26 b. If a majority of eligible voters approve establishing 27 a state assessment for water quality and soil conservation, 28 pursuant to a special referendum, the state assessment shall 29 be imposed commencing not more than sixty days following the 30 special referendum as determined by the council. If a majority 31 of eligible voters approve establishing a state assessment for 32 water quality and soil conservation, as part of an initial 33 referendum the state assessment shall be imposed in the same 34 manner described in paragraph “a” . The state assessment 35 -50- LSB 1401XS (24) 87 da/rj 50/ 99
S.F. 110 for water quality and soil conservation shall continue until 1 eligible voters voting in a special referendum conducted 2 pursuant to section 184.5 vote to do any of the following: 3 (1) Abolish the council and terminate the assessment for 4 direct use. 5 (2) Terminate the state assessment for water quality and 6 soil conservation. 7 (2) 8. a. If a majority of the voters do not approve 8 establishing the council and imposing the assessment for direct 9 use , the council and the assessment shall not be established , 10 and an the assessment shall not be imposed , until another 11 initial referendum is held conducted under this chapter and a 12 majority of the eligible voters approve establishing a council 13 and imposing the an assessment for direct use . If a an initial 14 referendum should fail, another initial referendum to decide 15 whether to establish a council and an assessment shall not be 16 held conducted within at least one hundred eighty days from the 17 date that the last initial referendum was conducted . 18 b. If a majority of the voters do not approve establishing 19 a state assessment for water quality and soil conservation, 20 the state assessment shall not be established until the 21 question is approved at a special referendum or as part of an 22 initial referendum conducted pursuant to this section. If a 23 special referendum, or an initial referendum which includes 24 the question whether to establish a state assessment for 25 water quality and soil conservation, should fail, the special 26 referendum or an initial referendum which includes the special 27 question shall not be conducted for at least one hundred eighty 28 days from the date that the last such special referendum or 29 initial referendum was conducted. 30 4. 9. Immediately after passage of the question to 31 establish a council and assessment for direct use at the an 32 initial referendum, the secretary shall appoint seven members 33 to the council in accordance with section 184.6 based on 34 nominations made by the Iowa poultry association. The Iowa 35 -51- LSB 1401XS (24) 87 da/rj 51/ 99
S.F. 110 poultry association shall nominate and the secretary shall 1 appoint two members representing large producers, two members 2 representing medium producers, and three members representing 3 small producers. The department, in consultation with the Iowa 4 poultry association, shall determine initial classifications 5 for small, medium, and large producers. The secretary shall 6 complete the appointments within thirty days following passage 7 of the question at the initial referendum. 8 Sec. 48. Section 184.3, Code 2017, is amended to read as 9 follows: 10 184.3 Assessment Assessments and state assessments . 11 1. a. Except as provided in paragraph “b” subsection 4 , 12 an assessment for direct use of two and one-half cents is 13 imposed on each thirty dozen eggs produced in this state. The 14 assessment for direct use shall be imposed on a producer at the 15 time of delivery to a purchaser who shall deduct the assessment 16 for direct use from the price paid to a producer at the time of 17 sale. 18 2. A state assessment for water quality and soil 19 conservation is imposed at the same rate and deducted in the 20 same manner as the assessment for direct use provided in 21 subsection 1. 22 3. The assessment for direct use and the state assessment 23 for water quality and soil conservation shall not be 24 refundable. The assessment is for direct use and state 25 assessment for water quality and soil conservation are due 26 to be paid to the council within thirty days following each 27 calendar quarter, as provided by the council. 28 b. 4. a. Upon request of the council, the secretary shall 29 call a special referendum for producers to vote on whether to 30 authorize an increase in the rate of assessment for direct use 31 to an amount that is more than two and one-half cents imposed 32 on each thirty dozen eggs produced in this state. 33 b. Upon request of the council, the secretary shall 34 call a special referendum for producers to vote on whether 35 -52- LSB 1401XS (24) 87 da/rj 52/ 99
S.F. 110 to authorize an increase in the state assessment for water 1 quality and soil conservation to equal the amount of the rate 2 of the assessment for direct use described in paragraph “a” . 3 The secretary shall include as part of a special referendum 4 to increase the rate of the assessment for direct use, a 5 separate special question whether to increase the rate of the 6 state assessment for water quality and soil conservation to 7 equal the increase in the assessment for direct use, if the 8 secretary determines the inclusion of the special question is 9 cost-effective or the request demands inclusion. 10 5. a. Notice of a special referendum described in 11 subsection 4 shall be given and the special referendum shall be 12 conducted in the manner provided in section 184.5 . 13 b. If a majority of the producers voting approves the an 14 increase in the rate of the assessment for direct use , the 15 council may increase the assessment for to the amount rate 16 approved. However, the The rate of the assessment for direct 17 use shall not exceed fifteen cents imposed on each thirty dozen 18 eggs produced in this state. If a majority of the producers 19 voting approves an increase in the state assessment for water 20 quality and soil conservation, the council shall increase the 21 rate of the state assessment to equal the rate approved for the 22 assessment for direct use. 23 2. 6. a. If the producer sells eggs to a purchaser outside 24 the state of Iowa, the producer shall deduct the assessment for 25 direct use from the amount received from the sale and shall 26 forward the amount deducted to the council within thirty days 27 following each calendar quarter. 28 b. If the producer sells eggs to a purchaser outside the 29 state of Iowa, the producer shall deduct the state assessment 30 for water quality and soil conservation in the same manner as 31 described in paragraph “a” . 32 7. If the producer and processor are the same person, then 33 that person shall pay the assessment for direct use or the 34 state assessment for water quality and soil conservation to the 35 -53- LSB 1401XS (24) 87 da/rj 53/ 99
S.F. 110 council within thirty days following each calendar quarter. 1 3. 8. The council may charge interest on any amount of the 2 an assessment for direct use or a state assessment for water 3 quality and soil conservation that is delinquent. The rate 4 of interest shall not be more than the current rate published 5 in the Iowa administrative bulletin by the department of 6 revenue pursuant to section 421.7 . The interest amount shall 7 be computed from the date the assessment for direct use or a 8 state assessment for water quality and soil conservation is 9 delinquent, unless the council designates a later date. The 10 interest amount shall accrue for each month in which there 11 is delinquency calculated as provided in section 421.7 , and 12 counting each fraction of a month as an entire month. The 13 interest amount due shall become a part of the assessment for 14 direct use or a state assessment for water quality and soil 15 conservation due. 16 Sec. 49. Section 184.4, subsection 1, paragraph e, Code 17 2017, is amended to read as follows: 18 e. The rate of withholding and the total amount of 19 assessment for direct use and the state assessment for water 20 quality and soil conservation withheld. The council may 21 require the invoice to separately indicate the amount withheld 22 for the assessment for direct use and for the state assessment 23 for water quality and soil conservation. 24 Sec. 50. Section 184.5, Code 2017, is amended to read as 25 follows: 26 184.5 Referendums Special referendum conducted to abolish 27 the council and terminate imposition of the assessment or state 28 assessment . 29 1. A special referendum may be called to abolish the council 30 and terminate the imposition of the assessment for direct use 31 established pursuant to section 184.3 and any state assessment 32 for water quality and soil conservation established pursuant to 33 that section . 34 2. a. A special referendum may be called to terminate 35 -54- LSB 1401XS (24) 87 da/rj 54/ 99
S.F. 110 the state assessment for water quality and soil conservation 1 established pursuant to section 184.3. 2 b. The secretary shall include as part of a special 3 referendum to abolish the council and terminate the assessment 4 for direct use described in subsection 1, a separate special 5 question whether to terminate the state assessment for water 6 quality and soil conservation, if the secretary determines the 7 inclusion of the special question is cost-effective or the 8 request demands inclusion. 9 3. The secretary shall call, and the department shall 10 conduct, the a special referendum described in subsection 11 1 upon the department’s receipt of a petition requesting 12 the special referendum. The petition must be signed by at 13 least twenty eligible voters or fifty percent of all eligible 14 voters, whichever is greater. In order to be an eligible 15 voter under this section , a producer must have paid an 16 assessment for direct use established under section 184.3, and 17 a state assessment for water quality and soil conservation if 18 established under that section, in the year of the special 19 referendum. The special referendum shall be conducted within 20 sixty days following receipt of the petition. The petitioners 21 shall guarantee payment of the cost of the special referendum 22 by providing evidence of financial security as required by the 23 department. 24 2. 4. The following procedures shall apply to a special 25 referendum conducted pursuant to this section : 26 a. The department shall publish a notice of the special 27 referendum for a period of not less than five days in at least 28 one newspaper of general circulation in the state. The notice 29 shall state the voting places, period of time for voting, 30 and other information deemed necessary by the department. A 31 special referendum shall not be commenced until five days after 32 the last date of publication. 33 b. Upon signing a statement certifying to the secretary that 34 the producer is an eligible voter, a producer is entitled to 35 -55- LSB 1401XS (24) 87 da/rj 55/ 99
S.F. 110 one vote in each special referendum conducted pursuant to this 1 section . The department may conduct the special referendum 2 by mail, electronic means, or a general meeting of eligible 3 voters. The department shall conduct the special referendum 4 and count and tabulate the ballots filed during the special 5 referendum within thirty days following the close of the 6 special referendum. 7 (1) c. If a majority of the total number of eligible 8 voters who vote in the special referendum approve approves 9 the continuation of the council and the imposition of the 10 assessment for direct use , the council and the imposition of 11 the assessment shall continue as provided in this chapter . 12 d. If a majority of eligible voters who vote in the special 13 referendum approves the continuation of the state assessment 14 for water quality and soil conservation, the imposition of the 15 state assessment shall continue for the same period as the 16 assessment for direct use. 17 (2) e. If a majority of the total number of eligible 18 voters who vote in the special referendum held pursuant to 19 this section do does not approve continuing the council and 20 the imposition of the assessment for direct use , the secretary 21 shall terminate the collection of the assessment for direct use 22 established pursuant to section 184.3 and the state assessment 23 for water quality and soil conservation if established pursuant 24 to that section, on the first day of the year for which the 25 referendum was to continue. The secretary shall terminate 26 the activities of the council in an orderly manner as soon as 27 practicable after the determination is made . An additional 28 initial referendum may be held as provided in conducted 29 under section 184.2 . However, the subsequent additional 30 referendum shall not be held within conducted for at least one 31 hundred eighty days after the date that the last such special 32 referendum was conducted . 33 f. If a majority of the total number of eligible voters 34 who vote in the special referendum does not approve continuing 35 -56- LSB 1401XS (24) 87 da/rj 56/ 99
S.F. 110 the state assessment for water quality and soil conservation, 1 the secretary shall terminate the state assessment in an 2 orderly manner as soon as practicable after the determination 3 is made. An additional special referendum or an additional 4 initial referendum that includes a separate special question 5 to establish the state assessment for water quality and soil 6 conservation may be conducted under section 184.2. However, 7 the subsequent special referendum or initial referendum shall 8 not be conducted for at least one hundred eighty days after 9 the date that the last such special referendum or initial 10 referendum was conducted. 11 Sec. 51. Section 184.10, subsection 4, Code 2017, is amended 12 to read as follows: 13 4. Enter into arrangements for the collection of the 14 assessment for direct use and any state assessment for water 15 quality and soil conservation . 16 Sec. 52. Section 184.10, Code 2017, is amended by adding the 17 following new subsection: 18 NEW SUBSECTION . 8. Cooperate with the division of soil 19 conservation and water quality of the department of agriculture 20 and land stewardship in doing all of the following: 21 a. Transferring moneys from the state assessment for water 22 quality and soil conservation to the water quality and soil 23 conservation fund created in section 466B.51. 24 b. Being reimbursed for reasonable expenses incurred in 25 conducting an initial or special referendum to establish, 26 continue, or terminate a state assessment for water quality and 27 soil conservation. 28 Sec. 53. Section 184.13, Code 2017, is amended to read as 29 follows: 30 184.13 Administration of moneys. 31 1. Subject to the provisions of section 184.3 , the 32 assessment imposed by this chapter for direct use established 33 pursuant to section 184.3, and the state assessment for water 34 quality and soil conservation if established pursuant to that 35 -57- LSB 1401XS (24) 87 da/rj 57/ 99
S.F. 110 section, shall be remitted by the purchaser to the council not 1 later than thirty days following each calendar quarter during 2 which the assessment was collected. 3 2. Amounts Moneys collected from the assessment for direct 4 use shall be deposited in the office of the treasurer of 5 state in a separate fund to be known as the Iowa egg fund. 6 The department of administrative services shall transfer 7 moneys from the fund to the council for deposit into an 8 account established by the council in a qualified financial 9 institution. The department shall transfer the moneys as 10 provided in a resolution adopted by the council. However, the 11 department is only required to transfer moneys once during each 12 day and only during hours when the offices of the state are 13 open. 14 3. Moneys collected from a state assessment for water 15 quality and soil conservation by the council may be deposited 16 in a qualified financial institution and shall be transferred 17 to the water quality and soil conservation fund created in 18 section 466B.51. 19 Sec. 54. Section 184.14, Code 2017, is amended to read as 20 follows: 21 184.14 Use of moneys —— appropriation —— audit. 22 1. All moneys deposited in the Iowa egg fund and transferred 23 to the council as provided in section 184.13 are appropriated 24 and shall be used for the administration of this chapter and 25 for the payment of claims based upon obligations incurred in 26 the performance of activities and functions set forth in this 27 chapter . 28 2. a. Moneys collected, deposited in the fund, and 29 transferred to the council as provided in this chapter are 30 subject to audit by the auditor of state. The auditor of state 31 may seek reimbursement for the cost of the audit. The moneys 32 transferred to the council shall be used by the council first 33 for the payment of collection expenses, second for payment of 34 the costs and expenses arising in connection with conducting 35 -58- LSB 1401XS (24) 87 da/rj 58/ 99
S.F. 110 referendums, third to perform the functions and carry out the 1 duties of the council as provided in this chapter , and fourth 2 for the cost of audits by the auditor of state. 3 b. Moneys The moneys remaining after the council is 4 abolished and the imposition of an the assessment for direct 5 use imposed pursuant to section 184.3 is terminated pursuant to 6 a special referendum conducted pursuant to section 184.5 shall 7 continue to be expended in accordance with this chapter until 8 exhausted. 9 3. If the council is abolished and the assessment for direct 10 use is terminated pursuant to a special referendum conducted 11 under section 184.5, remaining moneys collected from the state 12 assessment for water quality and soil conservation shall be 13 transferred to the water quality and soil conservation fund 14 created in section 466B.51. If the state assessment for water 15 quality and soil conservation is terminated pursuant to a 16 special referendum conducted under that section, remaining 17 moneys collected from the state assessment shall be transferred 18 to the water quality and soil conservation fund created in 19 section 466B.51. 20 4. Except as expressly provided in this chapter, moneys 21 collected from a state assessment for water quality and soil 22 conservation shall not be used for any purpose other than to 23 be transferred to the water quality and soil conservation fund 24 created in section 466B.51. 25 Sec. 55. Section 184.18, Code 2017, is amended to read as 26 follows: 27 184.18 Purchasers outside Iowa. 28 The secretary may enter into arrangements with purchasers 29 from outside Iowa for payment of the assessment for direct 30 use and the state assessment for water quality and soil 31 conservation . 32 DIVISION VI 33 IOWA TURKEY MARKETING COUNCIL 34 Sec. 56. Section 184A.1, Code 2017, is amended by adding the 35 -59- LSB 1401XS (24) 87 da/rj 59/ 99
S.F. 110 following new subsection: 1 NEW SUBSECTION . 1A. “Assessment” means an excise tax 2 imposed on the sale of turkeys which may include an assessment 3 for direct use and a state assessment for water quality and 4 soil conservation. 5 Sec. 57. Section 184A.1A, Code 2017, is amended to read as 6 follows: 7 184A.1A Referendum conducted to establish an Iowa turkey 8 marketing council and impose an assessment Referendums and 9 assessments . 10 1. The department shall call and conduct a an initial 11 referendum upon the department’s receipt of a petition which 12 is signed by at least twenty eligible voters requesting a 13 an initial referendum to determine whether to establish an 14 Iowa turkey marketing council as provided in section 184A.1B 15 and impose establish an assessment for direct use imposed as 16 provided in section 184A.2 . 17 2. If a council is established, and upon receipt of a 18 petition that otherwise complies with the requirements of 19 subsection 1, the department shall call and conduct a special 20 referendum to establish a state assessment for water quality 21 and soil conservation as provided in section 184A.2. 22 3. Upon receipt of a petition that otherwise complies with 23 the requirements of subsection 1, the secretary shall include 24 as part of the initial referendum a separate special question 25 whether to establish a state assessment for water quality and 26 soil conservation described in subsection 2, if the secretary 27 determines the inclusion of the separate special question is 28 cost-effective or the petition demands inclusion. 29 4. In order to be an eligible voter under this section , 30 a petitioner must be a qualified producer. The initial or 31 special referendum shall be conducted by election within sixty 32 days following receipt of the petition. The petitioners shall 33 guarantee payment of the cost of the referendum by providing 34 evidence of financial security as required by the department. 35 -60- LSB 1401XS (24) 87 da/rj 60/ 99
S.F. 110 2. 5. The department shall give notice of the an initial 1 referendum on the question whether to establish a council and 2 to impose an assessment or special referendum by publishing 3 the notice for a period of not less than five days in at least 4 one newspaper of general circulation in the state, and for 5 a similar period in other newspapers as prescribed by the 6 department. The notice shall state the voting places, period 7 of time for voting, the manner of voting, the amount of the 8 assessment for direct use or the amount of the state assessment 9 for water quality and soil conservation , and other information 10 deemed necessary by the department. A referendum or special 11 referendum shall not be commenced until five days after the 12 last date of publication. 13 3. a. 6. Each eligible voter who signs a statement 14 certifying that the eligible voter is a qualified producer 15 shall be an eligible voter under this section . An eligible 16 voter is entitled to cast one vote in each initial referendum 17 or special referendum conducted under this section . The 18 department may conduct the initial referendum or special 19 referendum by mail, electronic means, or a general meeting of 20 eligible voters. 21 b. 7. At the close of the initial referendum or special 22 referendum , the department shall count and tabulate the ballots 23 cast. 24 (1) 8. a. If a majority of eligible voters who vote in 25 the an initial referendum approve establishing the council and 26 imposing an assessment for direct use under section 184A.2 , a 27 council and the assessment shall be established, and an the 28 assessment shall be imposed commencing not more than sixty days 29 following the initial referendum as determined by the council. 30 The council and assessment for direct use shall continue for 31 five years as provided in section 184A.12 . 32 b. If a majority of eligible voters who vote in a special 33 referendum approve establishing a state assessment for water 34 quality and soil conservation, the state assessment shall be 35 -61- LSB 1401XS (24) 87 da/rj 61/ 99
S.F. 110 imposed commencing not more than sixty days following the 1 special referendum as determined by the council. 2 (2) c. If a majority of eligible voters who vote in the an 3 initial referendum do not approve establishing the council and 4 imposing the an assessment for direct use , the council shall 5 not be established and an assessment shall not be established 6 and imposed until another initial referendum is held conducted 7 under this section and a majority of the eligible voters voting 8 approve establishing a council and imposing the an assessment 9 for direct use . If a an initial referendum should fail, 10 another initial referendum shall not be held within conducted 11 for at least one hundred eighty days from the date of the last 12 such initial referendum. 13 d. If a majority of the voters do not approve establishing 14 a state assessment for water quality and soil conservation, the 15 state assessment shall not be established and imposed until the 16 question is approved at a special referendum or as part of an 17 initial referendum conducted pursuant to this section. If a 18 special referendum or an initial referendum which includes the 19 question whether to establish a state assessment should fail, 20 the special referendum or an initial referendum which includes 21 the question shall not be conducted for at least one hundred 22 eighty days from the date of the last such special referendum 23 or initial referendum which included the separate special 24 question. 25 4. 9. Within thirty days after approval at the initial 26 referendum to establish a council and to impose an assessment 27 for direct use , the department shall organize the council as 28 provided in section 184A.1B . 29 Sec. 58. Section 184A.1C, subsection 4, Code 2017, is 30 amended to read as follows: 31 4. Enter into arrangements for the collection , and deposit , 32 and use of the assessment for direct use or the collection, 33 deposit, and transfer of the state assessment for water quality 34 and soil conservation . 35 -62- LSB 1401XS (24) 87 da/rj 62/ 99
S.F. 110 Sec. 59. Section 184A.1C, Code 2017, is amended by adding 1 the following new subsection: 2 NEW SUBSECTION . 7. Cooperate with the division of soil 3 conservation and water quality of the department of agriculture 4 and land stewardship in doing all of the following: 5 a. Transferring moneys collected from the state assessment 6 for water quality and soil conservation to the water quality 7 and soil conservation fund created in section 466B.51. 8 b. Being reimbursed for reasonable expenses incurred in 9 conducting an initial or special referendum to establish, 10 continue, or terminate a state assessment for water quality and 11 soil conservation. 12 Sec. 60. Section 184A.2, Code 2017, is amended to read as 13 follows: 14 184A.2 Assessment Assessments —— direct use —— water quality 15 and soil conservation . 16 1. If an assessment for direct use or a state assessment for 17 water quality and soil conservation is approved by a majority 18 of the eligible voters voting at a an initial referendum or 19 special referendum as provided in section 184A.1A or 184A.12 , 20 all of the following shall apply: 21 a. The assessment for direct use or the state assessment for 22 water quality and soil conservation shall be imposed on each 23 turkey delivered for processing. 24 b. The council shall establish a rate of the assessment 25 for direct use and the state assessment for water quality and 26 soil conservation for each turkey delivered for processing. 27 The council may establish different rates based on attributes 28 or characteristics of turkeys. However, a rate shall not be 29 more than three cents for each turkey delivered for processing. 30 The rate of the state assessment for water quality and soil 31 conservation shall equal the assessment for direct use in 32 effect when the referendum establishing the state assessment 33 passes. 34 c. The assessment for direct use or the state assessment 35 -63- LSB 1401XS (24) 87 da/rj 63/ 99
S.F. 110 for water quality and soil conservation shall be imposed 1 on the producer and collected at the time of delivery of a 2 turkey to the processor. The assessment for direct use and 3 the state assessment for water quality and soil conservation 4 shall be deducted by the processor at the time of delivery 5 from the price paid to the producer at the time of the sale 6 to the processor. A processor shall remit assessments moneys 7 collected from the assessment for direct use or the state 8 assessment for water quality and soil conservation to the 9 council on a monthly basis as provided by the council. The 10 council shall deposit the remitted assessments moneys collected 11 from the assessment for direct use in the Iowa turkey fund as 12 provided in section 184A.4 . The council shall transmit moneys 13 collected from the state assessment for water quality and soil 14 conservation to the water quality and soil conservation fund 15 created in section 466B.51. 16 2. The council may enter into agreements with processors 17 from outside this state for the payment of the assessment for 18 direct use and the state assessment for water quality and soil 19 conservation . 20 3. a. The council shall provide for a refund of an 21 assessment for direct use, and of a state assessment for water 22 quality and soil conservation if established, according to 23 rules adopted by the council. 24 b. The council shall publish and disseminate applications 25 for refunds. An application shall allow the applicant to elect 26 whether the refund is for the assessment for direct use or a 27 state assessment for water quality and soil conservation or 28 both. The council shall not approve an application unless the 29 application indicates the election. 30 c. The council shall transmit any approved application for 31 a refund of the state assessment for water quality and soil 32 conservation to the division of soil conservation and water 33 quality of the department of agriculture and land stewardship 34 which shall pay a refund to the producer in the same manner as 35 -64- LSB 1401XS (24) 87 da/rj 64/ 99
S.F. 110 the council pays a refund to the producer under paragraph “a” . 1 Sec. 61. Section 184A.3, Code 2017, is amended to read as 2 follows: 3 184A.3 Assessment documentation Assessments —— documentation . 4 A processor receiving turkeys for slaughter shall do all of 5 the following: 6 1. At the time of payment to the producer, the processor 7 shall sign and submit a receipt to the producer which includes 8 the rate of the assessment for direct use imposed and the rate 9 of the state assessment for water quality and soil conservation 10 imposed and the amount of the assessment and state assessment 11 for all turkeys delivered for processing. 12 2. Within a period established by rules adopted by the 13 council, the processor shall regularly sign and submit to the 14 council an invoice or other records required by the council 15 to expedite collection of the assessment for direct use and 16 the state assessment for water quality and soil conservation . 17 The council may require that the processor submit a separate 18 invoice for each purchase. The invoice shall be legibly 19 printed and shall not be altered. An invoice shall include all 20 of the following: 21 a. The name and address of the producer and the seller, if 22 the seller’s name is different from the producer. 23 b. The name and address of the processor. 24 c. The number of turkeys sold. 25 d. The date of the delivery. 26 3. The council may require the invoice to separately 27 indicate the amount withheld for the assessment for direct 28 use and the state assessment for water quality and soil 29 conservation. 30 Sec. 62. Section 184A.4, Code 2017, is amended to read as 31 follows: 32 184A.4 Administration of moneys. 33 1. a. The assessments Moneys from the assessment for direct 34 use collected by the council as provided in section 184A.2 35 -65- LSB 1401XS (24) 87 da/rj 65/ 99
S.F. 110 shall be deposited in the office of the treasurer of state in 1 a special fund known as the Iowa turkey fund. The department 2 of administrative services shall transfer moneys from the 3 fund to the council for deposit into the turkey council 4 account established by the council pursuant to this section . 5 The department shall transfer the moneys as provided in a 6 resolution adopted by the council. However, the department is 7 only required to transfer moneys once during each day and only 8 during hours when the offices of the state are open. 9 2. b. The council shall establish a turkey council 10 account in a qualified financial institution. The council 11 shall provide for the deposit of all of the following into the 12 account: 13 a. (1) The assessment for direct use collected, deposited 14 in the Iowa turkey fund, and transferred to the council as 15 provided in this section . 16 b. (2) Moneys, other than assessments moneys collected from 17 the state assessment for water quality and soil conservation , 18 but including moneys in the form of gifts, rents, royalties, 19 or license fees received by the council pursuant to section 20 184A.1C . 21 2. Except as expressly provided in this chapter, moneys 22 collected from the state assessment for water quality and soil 23 conservation under this section shall not be used for any 24 purpose other than to be transferred to the water quality and 25 soil conservation fund created in section 466B.51. 26 Sec. 63. Section 184A.6, Code 2017, is amended to read as 27 follows: 28 184A.6 Use of moneys in the turkey council account . 29 1. All moneys deposited in the turkey council account 30 pursuant to section 184A.4 shall be used by the council for 31 purposes of administering this chapter . 32 2. The council shall expend moneys from deposited in the 33 turkey council account first for the payment of expenses for 34 the collection of assessments moneys from the assessment for 35 -66- LSB 1401XS (24) 87 da/rj 66/ 99
S.F. 110 direct use and the state assessment for water quality and soil 1 conservation , second for the payment of expenses related to 2 conducting a special referendum as provided in conducted under 3 section 184A.12 , and third for the cost of performing audits 4 by the auditor of state as required in section 184A.9 . The 5 council shall expend remaining moneys for market development, 6 producer education, and the payment of refunds to producers as 7 provided in this chapter . 8 Sec. 64. Section 184A.10, Code 2017, is amended to read as 9 follows: 10 184A.10 Referendum Referendums . 11 Upon receipt of a petition signed by at least twenty-five 12 producers requesting an initial referendum election to 13 determine whether to impose the fee assessment for direct use 14 as provided in section 184A.2 the secretary shall call and 15 conduct an initial referendum. 16 Sec. 65. Section 184A.12, Code 2017, is amended to read as 17 follows: 18 184A.12 Referendum Special referendum conducted to continue 19 the council and the imposition of the assessment establishment 20 of assessments . 21 1. The council shall call for a special referendum to 22 continue the council established pursuant to section 184A.1A , 23 and to continue the assessment for direct use established 24 pursuant to section 184A.2 . 25 2. The council shall call for a special referendum to 26 continue the state assessment for water quality and soil 27 conservation if established pursuant to section 184A.1A. The 28 council may include as part of the special referendum to 29 continue the council and the assessment for direct use under 30 subsection 1, a separate special question whether to continue 31 the state assessment for water quality and soil conservation. 32 3. The council shall call and conduct the a special 33 referendum by election as provided in this section . The 34 department shall oversee the conduct of the special referendum. 35 -67- LSB 1401XS (24) 87 da/rj 67/ 99
S.F. 110 The special referendum shall be conducted in the fifth year 1 following the initial referendum establishing the council and 2 the assessment for direct use as provided in section 184A.10 . 3 2. 4. The following procedures shall apply to a special 4 referendum conducted pursuant to this section : 5 a. The council shall publish a notice of the special 6 referendum for a period of not less than five days in at least 7 one newspaper of general circulation in the state and for 8 a similar period in other newspapers as prescribed by the 9 council. The notice shall state the voting places, period of 10 time for voting, manner of voting, and other information deemed 11 necessary by the council. A referendum shall not be commenced 12 until five days after the last date of publication. 13 b. Upon signing a statement certifying to the council that 14 a producer is an eligible voter, the producer is entitled to 15 one vote in each special referendum conducted pursuant to 16 this section . In order to be an eligible voter under this 17 section , a producer must be a qualified producer who paid an 18 the assessment for direct use and the state assessment for 19 water quality and soil conservation, if established, in the 20 year in which the special referendum is held conducted . The 21 council may conduct the special referendum by mail, electronic 22 means, or a general meeting of eligible voters. The council 23 shall conduct the special referendum and count and tabulate the 24 ballots filed during the special referendum within thirty days 25 following the close of the special referendum. 26 (1) c. If a majority of eligible voters who vote in the 27 special referendum approves the continuation of continuing the 28 council and the imposition of the assessment for direct use , 29 the council and the imposition of the assessment shall continue 30 as provided in this chapter . 31 d. If a majority of eligible voters who vote in the special 32 referendum approves continuing the state assessment for water 33 quality and soil conservation, the imposition of the state 34 assessment shall continue for the same period as the assessment 35 -68- LSB 1401XS (24) 87 da/rj 68/ 99
S.F. 110 for direct use. 1 (2) e. If a majority of eligible voters who vote in the 2 special referendum does not approve continuing the council 3 and the imposition of the assessment for direct use , the 4 department shall terminate the collection of the assessment for 5 direct use and the state assessment for water quality and soil 6 conservation if established. The termination shall occur on 7 the first day of the year for which the special referendum was 8 to continue. The department shall terminate the activities 9 of the council in an orderly manner as soon as practicable 10 after the date that the special referendum was conducted . A 11 subsequent initial referendum may be held conducted as provided 12 in section 184A.1A . However, the subsequent initial referendum 13 shall not be held within conducted for at least one hundred 14 eighty days from the date of that the last special referendum 15 was conducted . 16 f. If a majority of eligible voters who vote in the special 17 referendum does not approve continuing the state assessment 18 for water quality and soil conservation, the department shall 19 terminate the state assessment in the same manner as described 20 in paragraph “e” . A subsequent special referendum to establish 21 a state assessment for water quality and soil conservation 22 may be conducted as provided in section 184A.1A. However, 23 the subsequent special referendum shall not be conducted for 24 at least one hundred eighty days from the date that the last 25 special referendum was conducted. 26 Sec. 66. Section 184A.12A, Code 2017, is amended to read as 27 follows: 28 184A.12A Referendum Special referendum conducted to abolish 29 the council and terminate the imposition of the assessment 30 assessments . 31 1. A The department may call and conduct a special 32 referendum may be called to abolish the council established 33 pursuant to sections section 184A.1A and 184A.1B , and , to 34 terminate the imposition of the assessment for direct use 35 -69- LSB 1401XS (24) 87 da/rj 69/ 99
S.F. 110 established pursuant to section 184A.2 , and to terminate the 1 state assessment for water quality and soil conservation 2 established pursuant to section 184A.2 . 3 2. a. The department shall call and conduct, as provided 4 in subsection 3, a special referendum to terminate the state 5 assessment for water quality and soil conservation established 6 pursuant to section 184A.2. 7 b. The department shall include as part of a special 8 referendum to continue the council and the state assessment for 9 direct use conducted under subsection 1, a separate special 10 question to continue the state assessment for water quality and 11 soil conservation, if the department determines the inclusion 12 of the special question is cost-effective or a petition 13 described in subsection 3 demands inclusion. 14 3. The department shall call and conduct the special 15 referendum upon the department’s receipt of a petition 16 requesting the special referendum or the inclusion of a 17 separate special question as described in this section . The 18 petition must be signed by at least twenty eligible voters or 19 fifty percent of all eligible voters, whichever is greater. In 20 order to be an eligible voter under this section , a producer 21 must be a qualified producer who paid an the assessment for 22 direct use and the state assessment for water quality and soil 23 conservation, if established, in the year in which the special 24 referendum is held conducted . The special referendum shall 25 be conducted by election within sixty days following receipt 26 of the petition. The petitioners shall guarantee payment of 27 the cost of the special referendum by providing evidence of 28 financial security as required by the department. 29 2. 4. The following procedures shall apply to a special 30 referendum conducted pursuant to this section : 31 a. The department shall publish a notice of the special 32 referendum for a period of not less than five days in at least 33 one newspaper of general circulation in the state and for 34 a similar period in other newspapers as prescribed by the 35 -70- LSB 1401XS (24) 87 da/rj 70/ 99
S.F. 110 department. The notice shall state the voting places, period 1 of time for voting, manner of voting, and other information 2 deemed necessary by the department. A special referendum 3 shall not be commenced until five days after the last date of 4 publication. 5 b. Upon signing a statement certifying to the department 6 that a producer is an eligible voter, the producer is entitled 7 to one vote in each special referendum conducted pursuant 8 to this section . The department may conduct the special 9 referendum by mail, electronic means, or a general meeting of 10 eligible voters. The department shall conduct the special 11 referendum and count and tabulate the ballots filed during the 12 special referendum within thirty days following the close of 13 the special referendum. 14 (1) c. If a majority of eligible voters who vote in the 15 special referendum approves the continuation of the council and 16 the imposition of the assessment for direct use , the council 17 and the imposition of the assessment shall continue as provided 18 in this chapter . 19 d. If a majority of eligible voters who vote in the special 20 referendum approves the continuation of the state assessment 21 for water quality and soil conservation, the state assessment 22 shall continue for the same period as the assessment for direct 23 use. 24 (2) e. If a majority of eligible voters who vote in the 25 special referendum does not approve continuing the council and 26 the imposition of the assessment for direct use , the department 27 shall terminate the collection of the assessment for direct use 28 on the first day of the year for which the special referendum 29 was to continue. The department shall terminate the activities 30 of the council in an orderly manner as soon as practicable 31 after the special referendum. A subsequent initial referendum 32 may be held conducted as provided in section 184A.1A . However, 33 the subsequent initial referendum shall not be held within 34 conducted for at least one hundred eighty days from the date of 35 -71- LSB 1401XS (24) 87 da/rj 71/ 99
S.F. 110 that the last special referendum was conducted . 1 f. If a majority of eligible voters who vote in the special 2 referendum does not approve continuing the state assessment 3 for water quality and soil conservation, the department shall 4 terminate the collection of the state assessment in the same 5 manner as described in paragraph “e” . A subsequent special 6 referendum to establish a state assessment for water quality 7 and soil conservation may be called and conducted under section 8 184A.1A, or a separate special question to establish the 9 state assessment and included as part of a subsequent initial 10 referendum may be called and conducted under that section. 11 However, the subsequent special referendum or subsequent 12 initial referendum that includes the special question shall 13 not be conducted for at least one hundred eighty days from the 14 date that the last special referendum terminating the state 15 assessment was conducted. 16 DIVISION VII 17 IOWA SOYBEAN ASSOCIATION 18 Sec. 67. Section 185.1, subsection 17, Code 2017, is amended 19 to read as follows: 20 17. “State assessment” or “assessment” means an excise tax 21 on each bushel of soybeans marketed in this state which is 22 imposed pursuant to a any of the following: 23 a. A state assessment for direct use pursuant to a 24 promotional order as provided in this chapter . 25 b. A state assessment for water quality and soil 26 conservation. 27 Sec. 68. Section 185.1A, Code 2017, is amended to read as 28 follows: 29 185.1A Recognition of Iowa soybean association. 30 1. The corporation known as the Iowa soybean association 31 incorporated under the laws of this state shall be entitled 32 to the benefits of this chapter by filing each year with the 33 secretary a verified proof of its organization, the names 34 of its officers, and any other information required by the 35 -72- LSB 1401XS (24) 87 da/rj 72/ 99
S.F. 110 secretary. 1 2. The Iowa soybean association is a qualified state soybean 2 board for purposes of administering a national assessment. 3 For purposes of this chapter, “association” shall include a 4 successor qualified state soybean board or other entity that is 5 recognized by federal law to administer the national assessment 6 in Iowa. 7 Sec. 69. Section 185.2, Code 2017, is amended to read as 8 follows: 9 185.2 Petition for election Referendums . 10 1. Upon receipt of a petition signed by at least five 11 hundred producers requesting an initial referendum election 12 to determine whether a promotional order shall be placed in 13 effect, the secretary shall call an the initial referendum 14 election to be conducted within sixty days following receipt 15 of the petition. Producers shall vote by written ballot in 16 the manner provided by this chapter for an initial referendum 17 elections . 18 2. a. If a promotional order is placed into effect, and 19 upon receipt of a petition that otherwise complies with the 20 requirements of this section, the secretary shall conduct a 21 special referendum to establish a state assessment for water 22 quality and soil conservation. The special referendum shall be 23 conducted in the same manner as an initial referendum described 24 in subsection 1. 25 b. Upon receipt of a petition that otherwise complies with 26 the requirements of this section, the secretary shall include 27 as part of the initial referendum a separate special question 28 whether to establish and impose a state assessment for water 29 quality and soil conservation described in this section, if the 30 secretary determines the inclusion of the special question is 31 cost-effective or the petition demands inclusion. 32 Sec. 70. Section 185.11, Code 2017, is amended by adding the 33 following new subsection: 34 NEW SUBSECTION . 5. Cooperate with the division of soil 35 -73- LSB 1401XS (24) 87 da/rj 73/ 99
S.F. 110 conservation and water quality of the department of agriculture 1 and land stewardship in doing all of the following: 2 a. Transferring moneys collected from the state assessment 3 for water quality and soil conservation to the water quality 4 and soil conservation fund created in section 466B.51. 5 b. Being reimbursed for reasonable expenses incurred in 6 conducting an initial or special referendum to establish, 7 continue, or terminate a state assessment for water quality and 8 soil conservation. 9 Sec. 71. Section 185.13, subsection 4, Code 2017, is amended 10 to read as follows: 11 4. Enter into arrangements for collection of the state 12 assessment for direct use and any state assessment for water 13 quality and soil conservation imposed on soybeans marketed in 14 this state. 15 Sec. 72. Section 185.16, Code 2017, is amended to read as 16 follows: 17 185.16 Notice of referendum. 18 1. Notice of a referendum election to initiate or extend a 19 promotional order shall be given by publication in a newspaper 20 of general circulation in this state at least ten days prior 21 to the date of the referendum and in any other reasonable 22 manner as may be determined by the secretary for the initial 23 referendum and by the board for extension of the promotional 24 order. 25 2. Notice of a special referendum to establish or continue a 26 state assessment for water quality and soil conservation shall 27 be given in the same manner as described in subsection 1. 28 Sec. 73. Section 185.17, Code 2017, is amended to read as 29 follows: 30 185.17 Contents of notice. 31 The A notice of referendum described in section 185.16 shall 32 set forth the period of time for voting, voting places and such 33 other information as the secretary may deem necessary in an 34 initial referendum or special referendum . The board shall make 35 -74- LSB 1401XS (24) 87 da/rj 74/ 99
S.F. 110 such determinations in any subsequent initial referendum or 1 special referendum . 2 Sec. 74. Section 185.18, Code 2017, is amended to read as 3 follows: 4 185.18 Counting. 5 At the close of a referendum voting period, the secretary 6 shall count and tabulate the ballots cast during the referendum 7 period of the initial referendum or special referendum . 8 Sec. 75. Section 185.20, Code 2017, is amended to read as 9 follows: 10 185.20 Producers only to vote. 11 Only producers are eligible to vote in an election for 12 directors or a , an initial referendum election , or a special 13 referendum, and only in the district in which they reside. 14 A producer shall sign an affidavit at the time of voting 15 certifying the producer’s eligibility to vote. Each qualified 16 producer shall be entitled to one vote. 17 Sec. 76. Section 185.21, Code 2017, is amended to read as 18 follows: 19 185.21 Assessment State assessments —— rates . 20 1. A state assessment which for direct use that is adopted 21 established upon the initiation of a promotional order shall 22 be collected imposed during the effective period of the 23 promotional order, and shall be of no force or effect upon 24 termination of the promotional order. 25 2. a. The state assessment for direct use collected as part 26 of a promotional order shall be paid into the soybean promotion 27 fund established in section 185.26 . 28 b. The state assessment for water quality and soil 29 conservation if established pursuant to section 185.2 or 30 continued pursuant to section 185.25 shall be collected by the 31 board and may be deposited in a qualified financial institution 32 until transferred to the water quality and soil conservation 33 fund created in section 466B.51. 34 3. The rate of the state assessment for direct use 35 -75- LSB 1401XS (24) 87 da/rj 75/ 99
S.F. 110 established as part of a promotional order shall be imposed as 1 follows: 2 a. If the national assessment is being collected, the rate 3 of the state assessment for direct use shall be one-quarter of 4 one percent of the net market price of the soybeans marketed 5 in this state. 6 b. If the national assessment is not being collected, the 7 rate of the state assessment for direct use shall be one-half 8 of one percent of the net market price of soybeans marketed in 9 this state. 10 4. The rate of the state assessment for water quality and 11 soil conservation shall be imposed as follows: 12 a. If the national assessment is being collected, the rate 13 of the state assessment for water quality and soil conservation 14 shall equal the combined rate of the state assessment for 15 direct use and the national assessment as described in 16 subsection 3, paragraph “a” . 17 b. If the national assessment is not being collected, 18 the rate of the state assessment for water quality and soil 19 conservation shall be equal to the rate of the state assessment 20 for direct use as described in subsection 3, paragraph “b” . 21 Sec. 77. Section 185.22, Code 2017, is amended to read as 22 follows: 23 185.22 Promotional order Invoice . 24 1. After a promotional order has been issued, the first 25 purchaser at the time of payment for soybeans shall show the 26 total amount of the state assessment for direct use, and the 27 state assessment for water quality and soil conservation, 28 deducted from the sale on the purchase invoice. 29 2. The board may require the invoice to separately indicate 30 the amount withheld for the state assessment for direct use and 31 the state assessment for water quality and soil conservation. 32 The invoice may correspond to any invoice required to collect 33 the national assessment. 34 Sec. 78. Section 185.23, Code 2017, is amended to read as 35 -76- LSB 1401XS (24) 87 da/rj 76/ 99
S.F. 110 follows: 1 185.23 Deduction of assessment. 2 The state assessment for direct use and any state assessment 3 for water quality and soil conservation shall be deducted 4 from the purchase price of soybeans at the time of sale, and 5 forwarded to the board by the first purchaser in the manner and 6 at intervals determined by the board. 7 Sec. 79. Section 185.24, Code 2017, is amended to read as 8 follows: 9 185.24 Termination of a promotional order. 10 1. If a promotional order is not extended as determined 11 by a special referendum, the secretary and the board shall 12 terminate the promotional order in an orderly manner as soon 13 as practicable. The termination of the promotional order 14 shall terminate the state assessment for direct use. After 15 all moneys collected from the state assessment for direct use 16 are expended, the board shall remain in existence as provided 17 in its articles of incorporation or bylaws. The directors 18 shall no longer be elected as required in this chapter . The 19 ex officio directors shall no longer serve on the board. The 20 board shall cease to administer this chapter , and the board 21 shall no longer carry out its duties or exercise its powers 22 as provided in this chapter . However, if a future initial 23 referendum passes, the board shall be reorganized by the 24 secretary and the directors then serving on the board shall be 25 deemed to be the same directors who served on the board when 26 the promotional order was terminated. The directors shall 27 serve out their terms as though there had been no lapse of time 28 between the two effective orders. 29 2. The termination of the promotional order shall terminate 30 the state assessment for water quality and soil conservation. 31 The board shall transfer any remaining moneys collected from 32 the state assessment for water quality and soil conservation to 33 the water quality and soil conservation fund created in section 34 466B.51. 35 -77- LSB 1401XS (24) 87 da/rj 77/ 99
S.F. 110 Sec. 80. Section 185.25, Code 2017, is amended to read as 1 follows: 2 185.25 Special referendum referendums —— producer petition 3 petitions . 4 1. Upon receipt of a petition described in subsection 3, 5 the secretary shall call a special referendum to extend the 6 promotional order including continuing the state assessment for 7 direct use as part of the promotional order. 8 2. a. Upon receipt of a petition described in subsection 3, 9 the secretary shall call a special referendum to continue the 10 state assessment for water quality and soil conservation. 11 b. The secretary shall include as part of the special 12 referendum conducted under subsection 1 a separate special 13 question whether to continue the state assessment for water 14 quality and soil conservation, if the secretary determines the 15 inclusion of the special question is cost-effective or the 16 petition demands inclusion. 17 3. The secretary shall call a special referendum described 18 in this section not less than one hundred fifty nor more than 19 two hundred forty days from a four-year anniversary of the 20 effective date of an initial promotional order upon receipt 21 of a petition, signed within that same period by a number of 22 producers equal to or greater than one percent of the number of 23 producers reported in the most recent United States census of 24 agriculture, requesting a the special referendum to determine 25 whether to extend the promotional order , and the secretary 26 shall call a the special referendum to be conducted not earlier 27 than thirty days before the four-year anniversary date. 28 4. a. If the secretary determines that extension of 29 the promotional order is not favored by a majority of the 30 producers voting in the special referendum, the promotional 31 order shall be terminated as provided in section 185.24 . The 32 state assessment for water quality and soil conservation if 33 established shall also be terminated. If the promotional order 34 is terminated under this paragraph , another special referendum 35 -78- LSB 1401XS (24) 87 da/rj 78/ 99
S.F. 110 to reestablish the promotional order shall not be held within 1 conducted for at least one hundred eighty days after the date 2 that the most recent special referendum was conducted . 3 b. If the secretary determines that a continuance of the 4 state assessment for water quality and soil conservation is 5 not favored by a majority of the producers voting in the 6 special referendum, the state assessment shall be terminated 7 as provided in section 185.24. If the state assessment for 8 water quality and soil conservation is terminated under this 9 paragraph, another special referendum establishing the state 10 assessment or another special referendum that includes a 11 separate special question to establish the state assessment 12 shall not be conducted for at least one hundred eighty days 13 after the date that the last special referendum terminating the 14 state assessment was conducted. 15 5. A succeeding special referendum shall be called by the 16 secretary upon the petition of a number of producers equal 17 to or greater than one percent of the number of producers 18 reported in the most recent United States census of agriculture 19 requesting a the special referendum, who shall guarantee the 20 costs of the referendum. 21 6. a. If no valid petition is received by the secretary 22 within the time period described above in subsection 1 , or if a 23 petition is received but the special referendum to extend the 24 promotional order passes, the promotional order shall continue 25 in effect for four additional years from the anniversary of its 26 effective date. 27 b. If no valid petition for a special referendum to continue 28 the state assessment for water quality and soil conservation 29 is received by the secretary within the time period described 30 in subsection 3, the state assessment shall continue in effect 31 for four additional years from the anniversary of the effective 32 date of the promotional order. 33 Sec. 81. NEW SECTION . 185.25A National assessment —— 34 special referendum —— change in state assessment rate for water 35 -79- LSB 1401XS (24) 87 da/rj 79/ 99
S.F. 110 quality and soil conservation. 1 1. If a national assessment is imposed and upon receipt 2 of a petition that otherwise complies with the requirements 3 of section 185.25, the secretary shall conduct a special 4 referendum to change the rate of the state assessment for water 5 quality and soil conservation to equal the combined rate of the 6 national assessment and the state assessment for direct use 7 as provided in section 185.21, subsection 3, paragraph “a” . 8 The special referendum shall be conducted in the same manner 9 as a special referendum conducted pursuant to section 185.25. 10 However, the special referendum may be conducted in the same 11 manner and in conjunction with a referendum to change the rate 12 of the national assessment, to the extent permitted by federal 13 law. 14 2. If a national assessment is not imposed and upon receipt 15 of a petition that otherwise complies with the requirements 16 of section 185.25, the secretary shall conduct a special 17 referendum to change the rate of the state assessment for 18 water quality and soil conservation to equal the rate of the 19 state assessment for direct use as provided in section 185.21, 20 subsection 3, paragraph “b” . The special referendum shall be 21 conducted in the same manner as a special referendum conducted 22 pursuant to section 185.25. 23 3. If a special referendum or separate special question 24 to change the rate of the state assessment for water quality 25 and soil conservation does not pass, the result of the vote 26 shall not affect the existence or period during which the state 27 assessment is in effect. 28 Sec. 82. Section 185.26, Code 2017, is amended to read as 29 follows: 30 185.26 Administration of moneys. 31 1. a. The Moneys from a state assessment for direct use 32 imposed as part of a promotional order and collected by the 33 board shall be deposited in a special fund known as the soybean 34 promotion fund, in the office of the treasurer of state. The 35 -80- LSB 1401XS (24) 87 da/rj 80/ 99
S.F. 110 fund may also contain include any gifts or federal or state 1 grant received by the board. Moneys The moneys collected, 2 deposited into the fund, and transferred to the board, as 3 provided in this chapter , shall be subject to audit by the 4 auditor of state. 5 b. The department of administrative services shall 6 transfer moneys from the fund to the board for deposit into an 7 account known as the soybean checkoff account which shall be 8 established by the board in a qualified financial institution. 9 The department shall transfer the moneys into the account as 10 provided in a resolution adopted by the board. However, the 11 department is only required to transfer moneys once during each 12 day and only during hours when the offices of the state are 13 open. 14 c. From moneys collected, deposited, and transferred to the 15 soybean checkoff account as provided in this section , the board 16 shall first pay the costs of initial and special referendums, 17 elections, and other expenses incurred in the administration of 18 this chapter , before moneys may be expended to carry out the 19 purposes of the board as provided in section 185.11 . The board 20 shall strictly segregate moneys in the soybean checkoff account 21 from all other moneys of the board. Moneys in the soybean 22 checkoff account shall be expended by the board exclusively for 23 carrying out the purposes of the board as provided in section 24 185.11 . The account shall be subject to audit by the auditor 25 of state. 26 2. Moneys from a state assessment for water quality and 27 soil conservation collected by the board may be deposited in 28 a qualified financial institution and shall be transferred to 29 the water quality and soil conservation fund created in section 30 466B.51. 31 2. 3. The fiscal year of the association shall commence on 32 October 1 and end on September 30. 33 Sec. 83. Section 185.27, Code 2017, is amended to read as 34 follows: 35 -81- LSB 1401XS (24) 87 da/rj 81/ 99
S.F. 110 185.27 Refund of assessment. 1 1. a. A producer who has sold soybeans and had the state 2 assessment for direct use deducted from the sale price may, by 3 application in writing to the board, secure a refund in the 4 amount deducted. The refund shall be payable only when the 5 application is made to the board within sixty days after the 6 deduction. 7 b. A producer who has sold soybeans and had the state 8 assessment for water quality and soil conservation deducted 9 from the sale price may, by application in writing to the 10 board, secure a refund of the amount deducted payable by 11 the division of soil conservation and water quality of the 12 department of agriculture and land stewardship. The board 13 shall forward approved applications to the division within 14 sixty days after the deduction. 15 2. Application forms shall be given by the board to 16 each first purchaser when requested and the first purchaser 17 shall make the applications available to any producer. Each 18 application for refund by a producer shall have attached 19 thereto proof of assessment deducted. The proof of assessment 20 may be in the form of a duplicate or certified copy of the 21 purchase invoice by the first purchaser. The board shall 22 have thirty days from the date the application for refund is 23 received to remit the refund to the producer. The form shall 24 allow the applicant to elect whether the refund is for the 25 state assessment for direct use or for the state assessment for 26 water quality and soil conservation or both. The board shall 27 not approve an application unless the application indicates the 28 election. 29 Sec. 84. Section 185.28, Code 2017, is amended to read as 30 follows: 31 185.28 Use of moneys —— appropriation. 32 1. All moneys collected, deposited, and transferred to the 33 board as provided in this chapter , are appropriated and shall 34 be used for the administration of this chapter by the board and 35 -82- LSB 1401XS (24) 87 da/rj 82/ 99
S.F. 110 for the payment of claims by the board based upon obligations 1 incurred in the performance of board activities and functions 2 provided in this chapter . 3 2. Except as expressly provided in this chapter, moneys 4 collected from the state assessment for water quality and soil 5 conservation under this section shall not be used for any 6 purpose other than to be transferred to the water quality and 7 soil conservation fund created in section 466B.51. 8 Sec. 85. Section 185.29, Code 2017, is amended to read as 9 follows: 10 185.29 Remission of remaining moneys. 11 1. After the board has paid the costs of elections, 12 referendum, necessary board expenses, and administrative costs, 13 the remaining moneys collected, deposited in the soybean 14 promotion fund, and transferred to the soybean checkoff account 15 as provided in section 185.26 shall be expended by the board as 16 is necessary to carry out its purposes as provided in section 17 185.11 . 18 2. Notwithstanding subsection 1, moneys collected from a 19 state assessment for water quality and soil conservation by 20 the board shall be transferred to the water quality and soil 21 conservation fund created in section 466B.51. 22 Sec. 86. Section 185.33, Code 2017, is amended to read as 23 follows: 24 185.33 Report. 25 The board shall each year prepare and submit a report 26 summarizing the activities of the board under this chapter to 27 the auditor of state and the secretary of agriculture . The 28 report shall show all income, expenses, and other relevant 29 information concerning fees state assessments for direct use 30 collected and expended under the provisions of this chapter . 31 DIVISION VIII 32 IOWA CORN PROMOTION BOARD 33 Sec. 87. Section 185C.1, subsection 17, Code 2017, is 34 amended to read as follows: 35 -83- LSB 1401XS (24) 87 da/rj 83/ 99
S.F. 110 17. “State assessment” means a state excise tax on each 1 bushel of corn marketed in this state which is imposed as part 2 of a promotional order to administer this chapter pursuant to a 3 state assessment for direct use or a state assessment for water 4 quality and soil conservation . 5 Sec. 88. Section 185C.2, Code 2017, is amended to read as 6 follows: 7 185C.2 Petition for election Referendums . 8 1. Upon receipt of a petition signed by at least five 9 hundred producers requesting an initial referendum election 10 to determine whether a promotional order shall be placed in 11 effect, the secretary shall call an initial referendum election 12 to be conducted within sixty days following receipt of the 13 petition. Producers shall vote by written ballot in the manner 14 provided by this chapter for a referendum elections to approve 15 the passage of a promotional order . 16 2. a. If a promotional order is placed into effect, and 17 upon receipt of a petition that otherwise complies with the 18 requirements of subsection 1, the secretary shall conduct a 19 special referendum to establish a state assessment for water 20 quality and soil conservation. 21 b. Upon receipt of a petition that otherwise complies with 22 the requirements of subsection 1, the secretary shall include 23 as part of the initial referendum a separate special question 24 whether to establish a state assessment for water quality 25 and soil conservation as described in this section, if the 26 secretary determines the inclusion of the special question is 27 cost-effective or the petition demands inclusion. 28 Sec. 89. Section 185C.3, Code 2017, is amended to read as 29 follows: 30 185C.3 Establishment of corn promotion board. 31 If a majority of the producers voting in the an initial 32 referendum election conducted pursuant to section 185C.2 33 approve the passage of the promotional order, an Iowa corn 34 promotion board shall be established. 35 -84- LSB 1401XS (24) 87 da/rj 84/ 99
S.F. 110 Sec. 90. Section 185C.11, subsection 1, Code 2017, is 1 amended by adding the following new paragraph: 2 NEW PARAGRAPH . j. Cooperate with the division of soil 3 conservation and water quality of the department of agriculture 4 and land stewardship in doing all of the following: 5 (1) Transferring moneys collected from the state assessment 6 for water quality and soil conservation to the water quality 7 and soil conservation fund created in section 466B.51. 8 (2) Being reimbursed for reasonable expenses incurred 9 in conducting an initial or special referendum to establish, 10 continue, or terminate a state assessment for water quality and 11 soil conservation. 12 Sec. 91. Section 185C.11A, Code 2017, is amended by adding 13 the following new subsection: 14 NEW SUBSECTION . 5. The board shall not expend moneys 15 collected from the state assessment for water quality and soil 16 conservation to support the program. 17 Sec. 92. Section 185C.15, Code 2017, is amended to read as 18 follows: 19 185C.15 Term of promotional order —— automatic extension. 20 A promotional order shall be effective for four years from 21 its effective date. Upon the date that an the promotional 22 order is due to expire the order shall automatically be 23 extended for an additional four years from the date that the 24 order or last extension would otherwise expire, except as 25 provided in section 185C.24 . A state assessment for water 26 quality and soil conservation shall continue for the same 27 period as the promotional order unless the state assessment for 28 water quality and soil conservation is terminated as provided 29 in section 185C.24. 30 Sec. 93. Section 185C.21, Code 2017, is amended to read as 31 follows: 32 185C.21 State assessment assessments —— rates . 33 1. The board shall determine and set the rate of the state 34 assessment rate for direct use as part of the promotional 35 -85- LSB 1401XS (24) 87 da/rj 85/ 99
S.F. 110 order . State assessments A state assessment for direct use 1 collected pursuant to the promotional order shall be paid 2 into the corn promotion fund established in section 185C.26 . 3 Except as provided in subsection 2 subsections 2 and 3 , a state 4 assessment shall not exceed one-quarter of one cent per bushel 5 upon corn marketed in this state. 6 2. Upon request of the board, the secretary shall call 7 a special referendum for producers to vote on whether to 8 authorize an increase in the rate of the state assessment 9 for direct use above one-quarter of one cent per bushel, 10 notwithstanding subsection 1 . The special referendum shall be 11 conducted as provided in this chapter for referendum elections 12 referendums . However, the special referendum shall not affect 13 the existence or length of the promotional order in effect. If 14 a majority of the producers voting in the special referendum 15 approve the increase, the board may increase the assessment to 16 the amount approved in the special referendum. The board shall 17 establish the effective date of a rate change. However, the 18 rate of a state assessment for direct use shall not exceed a 19 scheduled maximum rate determined as follows: 20 a. Before September 1, 2014, one cent. 21 b. For each marketing year of the period beginning September 22 1, 2014, and ending August 31, 2019, two cents. 23 c. For each marketing year beginning on and after September 24 1, 2019, three cents. 25 3. The rate of the state assessment for water quality and 26 soil conservation shall equal the rate of the state assessment 27 for direct use in effect on the date that the special 28 referendum establishing the state assessment for water quality 29 and soil conservation is approved. 30 4. a. Upon request of the board, the secretary shall 31 call a special referendum for producers to vote on whether to 32 authorize an increase in the state assessment for water quality 33 and soil conservation to equal the same rate in effect under 34 subsection 2. The special referendum shall be conducted in the 35 -86- LSB 1401XS (24) 87 da/rj 86/ 99
S.F. 110 same manner as provided in that subsection. 1 b. Upon request of the board, the secretary shall include 2 as part of the special referendum conducted under subsection 3 2 a separate special question whether to increase the rate of 4 the state assessment for water quality and soil conservation 5 to equal the rate of the proposed increased amount of the 6 state assessment for direct use, if the secretary determines 7 the inclusion of the special question is cost-effective or the 8 request demands inclusion. 9 Sec. 94. Section 185C.22, Code 2017, is amended to read as 10 follows: 11 185C.22 State assessment assessments on purchase invoice. 12 1. After a promotional order has been issued, the first 13 purchaser at the time of payment for corn shall show the 14 total amount of state assessment for direct use and the state 15 assessment for water quality and soil conservation deducted 16 from the sale on the purchase invoice. 17 2. The board may require the invoice to separately indicate 18 the amount withheld for the state assessment for direct use and 19 the state assessment for water quality and soil conservation. 20 The invoice may correspond to any invoice required to collect 21 the federal assessment pursuant to section 185C.25A. 22 Sec. 95. Section 185C.24, Code 2017, is amended to read as 23 follows: 24 185C.24 Cancellation , and suspension , and termination . 25 1. The board shall be suspended and board operations and 26 terms of members shall cease upon either of the following 27 events: 28 a. The state assessment for direct use is terminated 29 pursuant to section 185C.25 . 30 b. The state assessment for direct use is suspended pursuant 31 to section 185C.25A . 32 2. However, notwithstanding subsection 1 , the board shall 33 continue to operate until proceeds remaining in the corn 34 promotion fund are disbursed. Disbursement shall be made as 35 -87- LSB 1401XS (24) 87 da/rj 87/ 99
S.F. 110 provided for payment of moneys under section 185C.26 . 1 3. If a state assessment for direct use and the federal 2 assessment are not imposed, the board shall continue to 3 transfer remaining moneys collected from the state assessment 4 for water quality and soil conservation to the water quality 5 and soil conservation fund created in section 466B.51. 6 3. 4. The secretary shall order that the board be 7 reconstituted upon either of the following events: 8 a. Recommencement of the promotional order, pursuant to 9 section 185C.25 . 10 b. Termination of the promotional order’s suspension, 11 pursuant to section 185C.25A . 12 4. 5. Until the board is reconstituted under section 13 185C.8 , the secretary has the powers to perform the duties of 14 the board as provided in this chapter , including the collection 15 of the state assessment for direct use at the rate in effect 16 on the date when collection of the state assessment for direct 17 use was terminated pursuant to section 185C.25 . However, the 18 secretary shall not expend funds moneys collected from the 19 state assessment for direct use . 20 6. Until the board is reconstituted, the secretary may 21 collect the state assessment for water quality and soil 22 conservation equal to the rate when the state assessment for 23 water quality and soil conservation was terminated. The 24 secretary shall transfer the collected moneys to the water 25 quality and soil conservation fund created in section 466B.51. 26 Sec. 96. Section 185C.25, Code 2017, is amended to read as 27 follows: 28 185C.25 Effective period of promotional order and state 29 assessments —— special referendums —— termination. 30 1. a. A state assessment for direct use adopted upon the 31 initiation of a promotional order shall be collected during the 32 effective period of the order, and shall have no effect upon 33 termination of the promotional order. 34 b. A state assessment for water quality and soil 35 -88- LSB 1401XS (24) 87 da/rj 88/ 99
S.F. 110 conservation if established shall be collected during the 1 effective period of the promotional order, and shall have no 2 effect upon the termination of the promotional order. However, 3 the state assessment for water quality and soil conservation 4 shall still be collected during any period in which a federal 5 assessment is collected, unless the state assessment is 6 terminated under this section. 7 2. Upon adoption or extension of the promotional order, the 8 order shall be effective for the period described in section 9 185C.15 unless the order is terminated as provided in this 10 section or suspended as provided in section 185C.25A . 11 2. 3. The secretary shall call a special referendum to 12 terminate the promotional order including the state assessment 13 for direct use imposed as part of the promotional order, and 14 the state assessment for water quality and soil conservation 15 if established. 16 4. a. The secretary shall call, as provided in subsection 17 5, a special referendum to terminate the state assessment for 18 water quality and soil conservation if established. 19 b. The secretary shall include as part of the special 20 referendum conducted under subsection 3, a separate special 21 question whether to terminate the state assessment for water 22 quality and soil conservation, if the secretary determines the 23 inclusion of the special question is cost-effective or the 24 petition described in subsection 5 demands inclusion. 25 5. The secretary shall call a special referendum under this 26 section if all the following conditions are met: 27 a. The secretary receives a petition signed by at least five 28 percent of the state’s producers reported in the most recent 29 United States census of agriculture. 30 b. The petition is signed by at least five percent of the 31 state’s producers residing in each of five districts according 32 to the most recent United States census of agriculture. 33 c. The secretary receives the petition not less than one 34 hundred fifty days from the date that the order is due to 35 -89- LSB 1401XS (24) 87 da/rj 89/ 99
S.F. 110 expire, but receives the petition not more than two hundred 1 forty days before the date that the order is due to expire. 2 3. 6. a. The secretary shall conduct the election as 3 provided for a special referendum to terminate the promotional 4 order including the state assessment for direct use and the 5 state assessment for water quality and soil conservation in 6 the same manner as an initial referendum conducted under this 7 chapter , including sections 185C.16 through 185C.20 . 8 b. The secretary shall conduct the special referendum to 9 terminate the state assessment for water quality and soil 10 conservation in the same manner as an initial referendum 11 conducted under this chapter, including sections 185C.16 12 through 185C.20. 13 7. a. If upon counting and tabulating the ballots, the 14 secretary determines that a majority of voting producers favor 15 favors termination of the state assessment for direct use , the 16 secretary, in cooperation with the board, shall terminate the 17 state assessment for direct use in an orderly manner as soon 18 as practicable. 19 b. If upon counting and tabulating the ballots, the 20 secretary determines that a majority of voting producers favors 21 termination of the state assessment for water quality and soil 22 conservation, the secretary, in cooperation with the board, 23 shall terminate the state assessment for water quality and soil 24 conservation in an orderly manner as soon as practicable. 25 4. 8. a. If the a state assessment for direct use is 26 terminated, another an initial referendum shall not be held 27 conducted for at least one hundred eighty days from the date 28 that the state assessment is terminated. 29 b. If a state assessment for water quality and soil 30 conservation is terminated, another special referendum or 31 another special referendum which includes a separate special 32 question to establish a state assessment shall not be conducted 33 for at least one hundred eighty days from the date that the 34 state assessment is terminated. 35 -90- LSB 1401XS (24) 87 da/rj 90/ 99
S.F. 110 9. A succeeding special referendum to restore the state 1 assessment for direct use shall be called by the secretary 2 upon receipt of a petition of at least five hundred producers 3 requesting a the special referendum. The petitioners shall 4 guarantee the costs of the succeeding referendum. The 5 secretary shall conduct the election special referendum as 6 provided for a an initial referendum under this chapter 7 section 185C.2 not later than one hundred fifty days after 8 the secretary receives the petition. If a referendum held 9 conducted pursuant to this subsection is approved by producers, 10 the promotional order shall commence no later than two hundred 11 ten days following the date that the petition is received by 12 the secretary. 13 10. a. A succeeding special referendum to restore the state 14 assessment for water quality and soil conservation shall be 15 called by the secretary upon petition that otherwise complies 16 with a petition to restore the state assessment for direct use 17 under subsection 9. The secretary shall conduct the succeeding 18 special referendum in the same manner as a succeeding special 19 referendum conducted under that subsection. If a special 20 referendum conducted pursuant to this paragraph is approved 21 by producers, the state assessment for water quality and soil 22 conservation shall commence not later than two hundred ten 23 days following the date that the petition is received by the 24 secretary. 25 b. Upon receipt of a petition that otherwise complies 26 with a petition to restore the state assessment for direct 27 use under subsection 9, the secretary shall include as part 28 of the succeeding special referendum conducted under that 29 subsection a separate special question whether to restore the 30 state assessment for water quality and soil conservation, if 31 the secretary determines the inclusion of the special question 32 is cost-effective or the request demands inclusion. 33 Sec. 97. Section 185C.25A, Code 2017, is amended to read as 34 follows: 35 -91- LSB 1401XS (24) 87 da/rj 91/ 99
S.F. 110 185C.25A Collection of federal assessment. 1 1. a. Prior to the collection of the federal assessment, 2 the board may approve the continued collection of the state 3 assessment for direct use as part of the promotional order 4 during the collection of the federal assessment. 5 b. If a federal assessment is collected, the state 6 assessment for water quality and soil conservation, if 7 established, shall continue to be imposed until terminated 8 under section 185C.25. 9 2. If the collection of amount collected from the state 10 assessment for direct use would be in addition to, and not an 11 offset against, the collection of amount collected from the 12 federal assessment, the board shall suspend the collection 13 of the state assessment. On the date of the termination or 14 suspension of the federal assessment, the promotional order 15 shall recommence and the suspension of the state assessment for 16 direct use shall terminate. The termination or suspension of 17 the federal assessment shall not affect the state assessment 18 for water quality and soil conservation. 19 Sec. 98. Section 185C.26, Code 2017, is amended to read as 20 follows: 21 185C.26 Deposit of moneys —— corn promotion fund —— 22 administration of moneys . 23 1. a. A Moneys from a state assessment for direct use 24 imposed as part of a promotional order and collected by the 25 board from a sale of corn shall be deposited in the office of 26 the treasurer of state in a special fund known as the corn 27 promotion fund. The corn promotion fund may also include 28 any gifts, rents, royalties, interest, license fees, or a 29 federal or state grant received by the board. Moneys The 30 moneys collected, deposited in the corn promotion fund, and 31 transferred to the board as provided in this chapter shall be 32 subject to audit by the auditor of state. The auditor of state 33 may seek reimbursement for the cost of the audit from moneys 34 deposited in the fund as provided in this chapter . 35 -92- LSB 1401XS (24) 87 da/rj 92/ 99
S.F. 110 b. The department of administrative services shall transfer 1 moneys from the corn promotion fund to the board for deposit 2 into an account established by the board in a qualified 3 financial institution. The department shall transfer the 4 moneys as provided in a resolution adopted by the board. 5 However, the department is only required to transfer moneys 6 once during each day and only during hours when the offices of 7 the state are open. 8 c. From moneys collected, the board shall first pay all 9 the direct and indirect costs incurred by the secretary and 10 the costs of initial and special referendums, elections, and 11 other expenses incurred in the administration of this chapter , 12 before moneys may be expended to carry out the purposes of this 13 chapter as provided in section 185C.11 . 14 2. Moneys from a state assessment for water quality and 15 soil conservation collected by the board may be deposited in 16 a qualified financial institution and shall be transferred to 17 the water quality and soil conservation fund created in section 18 466B.51. 19 Sec. 99. Section 185C.27, Code 2017, is amended to read as 20 follows: 21 185C.27 Refund of assessment state assessments . 22 1. a. A producer who has sold corn and had a state 23 assessment for direct use deducted from the sale price, by 24 application in writing to the board, may secure a refund in the 25 amount deducted. The refund shall be payable only when the 26 application shall have been made to the board within sixty days 27 after the deduction. The board shall have thirty days from the 28 date the application for refund is received to remit the refund 29 to the producer. 30 b. A producer who has sold corn and had the state assessment 31 for water quality and soil conservation deducted from the sale 32 price may, by application in writing to the board, secure 33 a refund of the amount deducted payable by the division of 34 soil conservation and water quality of the department of 35 -93- LSB 1401XS (24) 87 da/rj 93/ 99
S.F. 110 agriculture and land stewardship. The board shall forward 1 approved applications to the division within sixty days after 2 the deduction. 3 2. Application forms shall be given by the board to 4 each first purchaser when requested and the first purchaser 5 shall make the applications available to any producer. Each 6 application for refund by a producer shall have attached to 7 the application proof of the state assessment deducted. The 8 proof of state assessment may be in the form of a duplicate 9 or certified copy of the purchase invoice by the first 10 purchaser. The board shall have thirty days from the date the 11 application for refund is received to remit the refund to the 12 producer. The form shall allow the applicant to elect whether 13 the refund is for the state assessment for direct use or the 14 state assessment for water quality and soil conservation or 15 both. The board shall not approve an application unless the 16 application indicates the election. 17 3. a. The board may provide for refunds of a federal 18 assessment as provided by federal law. Unless inconsistent 19 with federal law, refunds shall be made under section 185C.26 . 20 b. The board may provide for filing applications for a 21 refund of the state assessment for direct use and the state 22 assessment for water quality and soil conservation based on 23 applicable procedures for the filing of applications for 24 refunds of the federal assessment. 25 Sec. 100. Section 185C.29, subsection 1, Code 2017, is 26 amended to read as follows: 27 1. After the direct and indirect costs incurred by the 28 secretary and the costs of elections, referendums, necessary 29 board expenses, and administrative costs have been paid, at 30 least seventy-five percent of the remaining moneys from a 31 state assessment for direct use shall be deposited in the corn 32 promotion fund and shall be used to carry out the purposes of 33 the board as provided in section 185C.11 . 34 Sec. 101. Section 185C.33, Code 2017, is amended to read as 35 -94- LSB 1401XS (24) 87 da/rj 94/ 99
S.F. 110 follows: 1 185C.33 Report. 2 The board shall each year prepare and submit a report 3 summarizing the activities of the board under this chapter to 4 the auditor of state and the secretary of agriculture . The 5 report shall show all income, expenses, and other relevant 6 information concerning fees the state assessment for direct use 7 collected and expended under the provisions of this chapter . 8 DIVISION IX 9 WATER QUALITY AND SOIL CONSERVATION FUND 10 Sec. 102. NEW SECTION . 7D.10B Payment to the water quality 11 and soil conservation fund. 12 If moneys are not sufficient to reimburse the department of 13 agriculture and land stewardship or a commodity organization 14 described in section 466B.51 for reasonable expenses incurred 15 in conducting a referendum to establish, continue, or terminate 16 a state assessment for water quality and soil conservation, the 17 executive council may authorize as an expense paid from the 18 appropriations addressed in section 7D.29 the payment of an 19 amount to the water quality and soil conservation fund created 20 in section 466B.51. However, not more than a total of one 21 hundred thousand dollars shall be paid pursuant to this section 22 to the fund at any one time to pay for expenses incurred in 23 conducting a referendum. 24 Sec. 103. NEW SECTION . 466B.51 Water quality and soil 25 conservation fund. 26 1. A water quality and soil conservation fund is created 27 in the state treasury under the management and control of 28 the division of soil conservation and water quality of the 29 department of agriculture and land stewardship. 30 2. a. The fund is composed of moneys collected from state 31 assessments for water quality and soil conservation from all of 32 the following commodity organizations: 33 (1) The Iowa dairy industry commission as established in 34 chapter 179 or the Iowa state dairy association as recognized 35 -95- LSB 1401XS (24) 87 da/rj 95/ 99
S.F. 110 in that chapter, which shall transfer moneys collected from the 1 state assessment for water quality and soil conservation as 2 provided in that chapter, including section 179.5. 3 (2) The Iowa beef cattle producers association, including 4 its executive committee, as established in chapter 181 which 5 shall transfer the moneys to the fund as provided in that 6 chapter, including section 181.13. 7 (3) The Iowa sheep and wool promotion board established 8 pursuant to chapter 182 which shall transfer the moneys to the 9 fund as provided in that chapter, including section 182.18. 10 (4) The Iowa pork producers council as established in 11 chapter 183A, or the Iowa pork producers association as 12 recognized in that chapter, which shall transfer the moneys to 13 the fund as provided in that chapter, including section 183A.7. 14 (5) The Iowa egg council as established in chapter 184 15 which shall transfer the moneys to the fund as provided in that 16 chapter, including section 184.13. 17 (6) The Iowa turkey marketing council as established in 18 chapter 184A which shall transfer the moneys to the fund as 19 provided in that chapter, including section 184A.4. 20 (7) The Iowa soybean association as recognized in chapter 21 185 which shall transfer the moneys to the fund as provided in 22 that chapter, including section 185.26. 23 (8) The Iowa corn promotion board as established in chapter 24 185C which shall transfer the moneys to the fund as provided in 25 that chapter, including section 185C.26. 26 b. The fund may include any other moneys available to 27 and obtained or accepted by the division from the federal 28 government or private sources for placement in the fund. 29 3. Moneys in the fund shall be expended by the division to 30 support programs and projects administered by the division to 31 improve the state’s watersheds and surface waters, including 32 but not limited to projects associated with the water quality 33 initiative established pursuant to section 466B.42. Moneys 34 in the fund shall also be used to support soil conservation 35 -96- LSB 1401XS (24) 87 da/rj 96/ 99
S.F. 110 and watershed protection, the installation of conservation 1 practices and watershed protection improvements as provided in 2 chapters 161A, 161C, 461A, 466, and 466A. 3 4. The division shall remit refunds of moneys to persons 4 who have paid state assessments to a commodity organization as 5 described in subsection 2, if the application for a refund has 6 been approved by the commodity organization and submitted to 7 the division as required by the division. 8 5. The division shall reimburse the department of 9 agriculture and land stewardship or a commodity organization 10 for all reasonable costs of conducting a referendum to 11 determine if a state assessment for water quality and soil 12 conservation will be established, continued, or terminated. 13 The department shall apply to the executive council if 14 necessary to receive moneys required to pay for reasonable 15 costs of conducting a referendum as provided in section 7D.10B. 16 6. Notwithstanding section 8.33, moneys in the fund shall 17 not revert. Notwithstanding section 12C.7, subsection 2, 18 interest or earnings on moneys in the fund shall be credited 19 to the fund. 20 DIVISION X 21 ADMINISTRATION 22 Sec. 104. NAME CHANGE TO REFERENDUM FOR DIRECT USE. Nothing 23 in this Act requires the department of agriculture and land 24 stewardship or a commodity organization described in section 25 466B.51, as enacted in this Act, to conduct a referendum 26 because of this Act’s reference to a referendum as a referendum 27 for direct use. 28 EXPLANATION 29 The inclusion of this explanation does not constitute agreement with 30 the explanation’s substance by the members of the general assembly. 31 This bill relates to agricultural commodity organizations 32 representing producers of that commodity that are authorized 33 to impose an excise tax or “assessment” (and commonly 34 referred to as a “checkoff”) on the commodity when first 35 -97- LSB 1401XS (24) 87 da/rj 97/ 99
S.F. 110 sold by the producer to a first purchaser. The goal of the 1 assessment is to fund promotional activities which involve 2 market development, research, and education. The commodity 3 organizations include the Iowa dairy industry commission or 4 Iowa state dairy association (Code chapter 179), Iowa beef 5 cattle producers association (Code chapter 181), Iowa sheep and 6 wool promotion board (Code chapter 182), Iowa pork producers 7 council or Iowa pork producers association (Code chapter 183A), 8 Iowa egg council (Code chapter 184), the Iowa turkey marketing 9 council (Code chapter 184A), the Iowa soybean association 10 (Code chapter 185), and the Iowa corn promotion board (Code 11 chapter 185C). The bill requires a commodity organization to 12 establish a separate state assessment for water quality and 13 soil conservation, if approved by a majority of its members at 14 a referendum. The bill also requires commodity organizations 15 to conduct a special referendum to increase the rate of the 16 assessment for water quality and soil conservation to equal 17 any increase in the assessment for direct use or national 18 assessment or both. Expenses associated with conducting a 19 referendum would be paid from moneys deposited into the fund 20 or by the executive council if moneys in the fund were not 21 adequate to cover expenses. The referendum would be conducted 22 in the same manner as an initial or special referendum 23 conducted by the commodity organization under its specific 24 Code chapter. The special assessment could be continued or 25 terminated in the same manner as the commodity organization’s 26 assessment for promotional activities. The amount of the 27 state assessment would be the same as the effective rate for 28 the promotional assessment imposed under state or federal law. 29 Moneys from the state assessment would be collected by the 30 commodity organization and transferred to the division of soil 31 conservation and water quality of the department of agriculture 32 and land stewardship for purposes of supporting existing water 33 quality programs and projects or soil conservation programs 34 and projects. The bill authorizes the payment of refunds to 35 -98- LSB 1401XS (24) 87 da/rj 98/ 99
S.F. 110 producers who were eligible to receive refunds from their 1 commodity organization and for the payment of expenses incurred 2 by conducting a referendum to impose the state assessment. 3 -99- LSB 1401XS (24) 87 da/rj 99/ 99