House Study Bill 687 - Introduced HOUSE FILE _____ BY (PROPOSED COMMITTEE ON AGRICULTURE BILL BY CHAIRPERSON SEXTON) A BILL FOR An Act authorizing the Iowa sheep and wool promotion board to 1 issue orders for the suspension and recommencement of the 2 assessment imposed on wool, and including effective date 3 provisions. 4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 5 TLSB 6311HC (2) 90 da/ns
H.F. _____ Section 1. NEW SECTION . 182.14A Suspension of wool 1 assessment. 2 The board may issue an order to suspend the imposition of 3 the assessment on wool if the board determines that the average 4 per pound market value of wool sold by producers to first 5 purchasers is less than the assessment rate imposed pursuant 6 to section 182.13B. The board may order the termination 7 of the suspension order and recommence the imposition of 8 the assessment at any time. However, the board shall order 9 the termination of the suspension order and recommence the 10 imposition of the assessment if it determines that the market 11 value of wool as calculated in this section will remain more 12 than the assessment rate for the foreseeable future. An order 13 issued by the board under this section may include any terms or 14 conditions that the board determines reasonable. 15 Sec. 2. EFFECTIVE DATE. This Act, being deemed of immediate 16 importance, takes effect upon enactment. 17 EXPLANATION 18 The inclusion of this explanation does not constitute agreement with 19 the explanation’s substance by the members of the general assembly. 20 BACKGROUND. This bill amends Code chapter 182 which 21 provides for an assessment (a so-called checkoff) on the sale 22 of sheep and wool, which is a self-imposed tax on producers 23 collected by first purchasers for remission to the Iowa sheep 24 and wool promotion board (board) under a promotional order for 25 purposes of promoting the marketing of sheep and wool and to 26 provide for related education and research programs. The board 27 operates and the assessment is imposed pursuant to a referendum 28 approved by producers (Code section 182.12). The assessment 29 rate for wool is 2 cents for each pound of wool sold by a 30 producer to the first purchaser (Code section 182.13B). 31 BILL’S PROVISIONS. The bill authorizes the board to issue 32 an order suspending the imposition of the assessment on wool 33 if the board determines that the average per pound market 34 value of the wool sold to first purchasers is less than the 35 -1- LSB 6311HC (2) 90 da/ns 1/ 2
H.F. _____ assessment rate. The board may later order the termination 1 of the suspension order; but must order its termination, and 2 recommence the imposition of the assessment, if it determines 3 that the market value will remain more than the assessment rate 4 for the foreseeable future. 5 EFFECTIVE DATE. The bill takes effect upon enactment. 6 -2- LSB 6311HC (2) 90 da/ns 2/ 2