HF 2513 (LSB 6311HV (2) 90)

HOUSE FILE 2513

BY  COMMITTEE ON AGRICULTURE

(SUCCESSOR TO HSB 687)

A BILL FOR

An Act authorizing the Iowa sheep and wool promotion board to issue orders for the suspension and recommencement of the assessment imposed on wool, and including effective date provisions.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  NEW SECTION.  182.14A  Suspension of wool assessment.
   The board may issue an order to suspend the imposition of the assessment on wool if the board determines that the average per pound market value of wool sold by producers to first purchasers is equal to or less than the assessment rate imposed pursuant to section 182.13B. The board may order the termination of the suspension order and recommence the imposition of the assessment at any time. However, the board shall order the termination of the suspension order and recommence the imposition of the assessment if it determines that the market value of wool as calculated in this section will remain more than the assessment rate for the foreseeable future. An order issued by the board under this section may include any terms or conditions that the board determines reasonable.
    Sec. 2.  EFFECTIVE DATE.  This Act, being deemed of immediate importance, takes effect upon enactment.
EXPLANATION
The inclusion of this explanation does not constitute agreement with
the explanation’s substance by the members of the general assembly.
   BACKGROUND. This bill amends Code chapter 182 which provides for an assessment (a so-called checkoff) on the sale of sheep and wool, which is a self-imposed tax on producers collected by first purchasers for remission to the Iowa sheep and wool promotion board (board) under a promotional order for purposes of promoting the marketing of sheep and wool and to provide for related education and research programs. The board operates and the assessment is imposed pursuant to a referendum approved by producers (Code section 182.12). The assessment rate for wool is 2 cents for each pound of wool sold by a producer to the first purchaser (Code section 182.13B).
   BILL’S PROVISIONS. The bill authorizes the board to issue an order suspending the imposition of the assessment on wool if the board determines that the average per pound market value of the wool sold to first purchasers is equal to or less than the assessment rate. The board may later order the termination of the suspension order; but must order its termination, and recommence the imposition of the assessment, if it determines that the market value will remain more than the assessment rate for the foreseeable future.
   EFFECTIVE DATE. The bill takes effect upon enactment.