Senate Study Bill 1205 - Introduced SENATE FILE _____ BY (PROPOSED COMMITTEE ON WAYS AND MEANS BILL BY CHAIRPERSON DAWSON) A BILL FOR An Act providing for financing of certain agricultural 1 commodity programs, by reducing and eliminating fees imposed 2 on licensed grain dealers and warehouse operators, replacing 3 those moneys with moneys collected from a percentage of 4 state assessments imposed on the sale of corn and soybeans, 5 increasing moneys deposited into the grain depositors and 6 sellers indemnity fund, increasing indemnification amounts, 7 and making appropriations. 8 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 9 TLSB 2529XC (3) 90 da/ns

S.F. _____ Section 1. Section 185.1, subsection 7, Code 2023, is 1 amended to read as follows: 2 7. “Market development” means to engage improve the economic 3 conditions of soybean production, storage, and marketing, by 4 engaging in research and educational programs directed toward 5 better and more efficient production , storage, and utilization 6 of soybeans; to provide providing methods and means , including 7 but not limited to , public relations and other promotion 8 techniques for the maintenance of present markets; to provide 9 ensuring the security of soybeans stored and marketed in 10 commercial channels; providing for the development of new or 11 larger domestic and foreign markets; and to provide providing 12 for the prevention, modification, or elimination of trade 13 barriers which obstruct the free flow of soybeans. 14 Sec. 2. Section 185.13, Code 2023, is amended by adding the 15 following new subsection: 16 NEW SUBSECTION . 7. Accept gifts or federal or state grants 17 received by the board. Any moneys accepted by the board 18 shall be deposited in an account of a qualified financial 19 institution. 20 Sec. 3. Section 185.21, subsection 2, Code 2023, is amended 21 to read as follows: 22 2. The state assessment shall be paid deposited into the 23 soybean promotion marketing fund established in section 185.26 . 24 Sec. 4. Section 185.26, Code 2023, is amended to read as 25 follows: 26 185.26 Administration Deposit of moneys collected from state 27 assessment —— soybean marketing fund —— transfers . 28 1. The Moneys from the state assessment collected by 29 the board from the sale of soybeans shall be deposited in a 30 special fund known as the soybean promotion marketing fund, 31 established in the office of the treasurer of state. The fund 32 may also contain any gifts or federal or state grant received 33 by the board. Moneys collected, deposited into in the soybean 34 marketing fund , and transferred to the board, as provided in 35 -1- LSB 2529XC (3) 90 da/ns 1/ 26

S.F. _____ this chapter , shall be subject to audit by the auditor of 1 state. The 2 2. a. Except as provided in paragraph “b” , the department 3 of administrative services shall transfer moneys from the 4 soybean marketing fund to the board for deposit into in an 5 account known as the soybean checkoff account which shall be 6 established by the board in a qualified financial institution. 7 The department of administrative services shall transfer the 8 moneys into to the soybean checkoff account as provided in a 9 resolution adopted by the board. However, the department is 10 only required to transfer moneys once during each day and only 11 during hours when the offices of the state are open. From 12 moneys collected, deposited, and transferred to the soybean 13 checkoff account as provided in this section , the board shall 14 first pay the costs of referendums, elections, and other 15 expenses incurred in the administration of this chapter , 16 before the transferred moneys may be expended to carry out the 17 purposes of the board as provided in section 185.11 . The board 18 shall strictly segregate moneys in the soybean checkoff account 19 from all other moneys of the board. Moneys in the soybean 20 checkoff account shall be expended by the board exclusively 21 for use as provided in section 185.28, including for carrying 22 out the purposes of the board as provided in section 185.11 . 23 The soybean checkoff account shall be subject to audit by the 24 auditor of state. 25 b. (1) Except as otherwise provided in subparagraph 26 (2), twenty-five percent of moneys deposited in the soybean 27 marketing fund shall be transferred to the grain depositors 28 and sellers indemnity fund created in section 203D.3 for use 29 as provided in section 185.28. 30 (2) If the department of agriculture and land stewardship 31 delivers a state assessment transfer suspension notice to the 32 department of administrative services as provided in section 33 203D.3B, moneys that would otherwise be transferred to the 34 grain depositors and sellers indemnity fund as described in 35 -2- LSB 2529XC (3) 90 da/ns 2/ 26

S.F. _____ subparagraph (1) shall instead be transferred to the soybean 1 checkoff account for use by the board in the same manner 2 provided in paragraph “a” . 3 (3) If the department of agriculture and land stewardship 4 delivers a state assessment transfer reinstatement notice 5 to the department of administrative services as provided in 6 section 203D.3B, moneys that would otherwise be transferred to 7 the soybean checkoff account under subparagraph (2) shall again 8 be transferred to the grain depositors and sellers indemnity 9 fund in the same manner described in subparagraph (1). 10 c. The department of administrative services is only 11 required to transfer moneys under this subsection to the 12 soybean checkoff account and the grain depositors and sellers 13 indemnity fund once during each day and only during hours when 14 the offices of the state are open. 15 2. 3. The fiscal year of the association shall commence on 16 October 1 and end on September 30. 17 Sec. 5. Section 185.28, Code 2023, is amended to read as 18 follows: 19 185.28 Use of moneys —— appropriation appropriations . 20 1. All Except as provided in subsection 2, moneys collected, 21 deposited, and transferred to or accepted by the board as 22 provided in this chapter , are appropriated and shall be used 23 for the administration of this chapter by the board and for the 24 payment of claims by the board based upon obligations incurred 25 in the performance of board activities and functions provided 26 in this chapter . 27 2. Moneys transferred from the soybean marketing fund to 28 the grain depositors and sellers indemnity fund as provided in 29 section 185.26 are appropriated for use by the department of 30 agriculture and land stewardship and the Iowa grain indemnity 31 fund board as provided in chapter 203D. 32 Sec. 6. Section 185.30, Code 2023, is amended to read as 33 follows: 34 185.30 Bond. 35 -3- LSB 2529XC (3) 90 da/ns 3/ 26

S.F. _____ Every A person occupying a position of trust with the 1 board and acting under any provisions a provision of this 2 chapter shall provide post a bond in an amount required by the 3 board. The premium for the bond shall be paid out of moneys 4 transferred from in the soybean promotion fund to the board 5 pursuant to checkoff account established in section 185.26 . 6 Sec. 7. Section 185.33, Code 2023, is amended to read as 7 follows: 8 185.33 Report. 9 The board shall each year prepare and submit a report 10 summarizing the activities of the board under this chapter to 11 the auditor of state and the secretary of agriculture. The 12 report shall show all income, expenses, and other relevant 13 information concerning fees moneys collected by the board, 14 deposited by the board in an account, transferred to the board, 15 and expended by the board under the provisions of this chapter . 16 Sec. 8. Section 185.34, subsection 2, paragraph b, 17 subparagraph (2), Code 2023, is amended to read as follows: 18 (2) A public body for purposes of chapter 12C . Moneys 19 deposited into the soybean checkoff account as established in 20 section 185.26 shall be deemed to be public funds under chapter 21 12C . 22 Sec. 9. Section 185.34, Code 2023, is amended by adding the 23 following new subsection: 24 NEW SUBSECTION . 3. Moneys deposited in the soybean 25 marketing fund and transferred to the soybean checkoff account 26 as established in section 185.26 or the grain depositors and 27 sellers indemnity fund as provided in that section shall be 28 deemed to be public funds under chapter 12C. 29 Sec. 10. Section 185.35, subsection 2, Code 2023, is amended 30 to read as follows: 31 2. Subsection 1 does not apply to a any of the following: 32 a. A communication or action taken by the board if any of 33 the following applies: 34 a. (1) The board may communicate or take action directed 35 -4- LSB 2529XC (3) 90 da/ns 4/ 26

S.F. _____ to an appropriate government official or government relating 1 to the marketing of soybeans or soybean products to a foreign 2 country. 3 b. (2) The communication or action relates to the 4 prevention, modification, or elimination of trade barriers. 5 b. Moneys transferred to the grain depositors and sellers 6 indemnity fund as provided in section 185.26. 7 Sec. 11. Section 185C.1, subsection 9, Code 2023, is amended 8 to read as follows: 9 9. “Market development” means to engage improve the economic 10 conditions of corn production, storage, and marketing, by 11 engaging in research and educational programs directed toward 12 better and more efficient production, storage, and utilization 13 of corn; to provide providing methods and means , including but 14 not limited to , public relations and other promotion techniques 15 for the maintenance of present markets; to provide ensuring 16 the security of corn to be stored and marketed in commercial 17 channels; providing for the development of new or larger 18 domestic and foreign markets; and to provide providing for the 19 prevention, modification, or elimination of trade barriers 20 which obstruct the free flow of corn. 21 Sec. 12. Section 185C.11, subsection 1, Code 2023, is 22 amended by adding the following new paragraphs: 23 NEW PARAGRAPH . j. Administer the corn checkoff account as 24 provided in section 185C.26. 25 NEW PARAGRAPH . k. Accept gifts, rents, royalties, interest, 26 license fees, or federal or state grants. Any moneys accepted 27 by the board shall be deposited in an account of a qualified 28 financial institution. 29 Sec. 13. Section 185C.21, subsection 1, Code 2023, is 30 amended to read as follows: 31 1. The board shall determine and set the state assessment 32 rate. State assessments collected pursuant to the promotional 33 order shall be paid into the corn promotion marketing fund 34 established in section 185C.26 . Except as provided in 35 -5- LSB 2529XC (3) 90 da/ns 5/ 26

S.F. _____ subsection 2 , a state assessment shall not exceed one-quarter 1 of one cent per bushel upon corn marketed in this state. 2 Sec. 14. Section 185C.24, subsections 1 and 2, Code 2023, 3 are amended to read as follows: 4 1. The board shall be suspended and board operations and 5 terms of members shall cease upon either any of the following 6 events: 7 a. The state assessment is terminated pursuant to section 8 185C.25 . 9 b. The state assessment is suspended pursuant to section 10 185C.25A . 11 2. However, notwithstanding subsection 1 , the board 12 shall continue to operate until proceeds remaining in moneys 13 transferred from the corn promotion marketing fund to the corn 14 checkoff account are disbursed. Disbursement shall be made 15 as provided for payment the transfer of moneys under section 16 185C.26 . 17 Sec. 15. Section 185C.26, Code 2023, is amended to read as 18 follows: 19 185C.26 Deposit of moneys —— corn promotion marketing fund 20 —— transfers . 21 1. A Moneys from the state assessment collected by the Iowa 22 corn promotion board from a the sale of corn shall be deposited 23 in the office of the treasurer of state in a special fund known 24 as the corn promotion marketing fund established in the office 25 of the treasurer of state . The fund may include any gifts, 26 rents, royalties, interest, license fees, or a federal or state 27 grant received by the board. Moneys collected, deposited 28 in the corn marketing fund , and transferred to the board as 29 provided in this chapter shall be subject to audit by the 30 auditor of state. The auditor of state may seek reimbursement 31 for the cost of the audit from moneys deposited in the corn 32 marketing fund as provided in this chapter . The department of 33 administrative services shall transfer moneys from the fund 34 2. a. Except as provided in paragraph “b” , the department 35 -6- LSB 2529XC (3) 90 da/ns 6/ 26

S.F. _____ of administrative services shall transfer moneys deposited 1 in the corn marketing fund to the board for deposit into in 2 an account known as the corn checkoff account which shall be 3 established by the board in a qualified financial institution. 4 The department of administrative services shall transfer the 5 moneys to the corn checkoff account as provided in a resolution 6 adopted by the board. However, the department is only required 7 to transfer moneys once during each day and only during hours 8 when the offices of the state are open. From moneys collected, 9 transferred to the corn checkoff account, the board shall first 10 pay all the direct and indirect costs incurred by the secretary 11 and the costs of referendums, elections, and other expenses 12 incurred in the administration of this chapter , before the 13 transferred moneys may be expended to carry for other uses as 14 provided in section 185C.28, including for carrying out the 15 purposes of this chapter as provided in section 185C.11 . 16 b. (1) Except as otherwise provided in subparagraph (2), 17 twenty-five percent of moneys deposited in the corn marketing 18 fund shall be transferred to the grain depositors and sellers 19 indemnity fund created in section 203D.3 for use as provided 20 in section 185C.28. 21 (2) If the department of agriculture and land stewardship 22 delivers a state assessment transfer suspension notice to the 23 department of administrative services as provided in section 24 203D.3B, moneys that would otherwise be transferred to the 25 grain depositors and sellers indemnity fund as described in 26 subparagraph (1) shall instead be transferred to the corn 27 checkoff account for use by the board in the same manner 28 provided in paragraph “a” . 29 (3) If the department of agriculture and land stewardship 30 delivers a state assessment transfer reinstatement notice 31 to the department of administrative services as provided in 32 section 203D.3B, moneys that would otherwise be transferred to 33 the corn checkoff account under subparagraph (2) shall again be 34 transferred to the grain depositors and sellers indemnity fund 35 -7- LSB 2529XC (3) 90 da/ns 7/ 26

S.F. _____ in the same manner described in subparagraph (1). 1 c. The department of administrative services is only 2 required to transfer moneys under this subsection to the corn 3 checkoff account and the grain depositors and sellers indemnity 4 fund once during each day and only during hours when the 5 offices of the state are open. 6 Sec. 16. Section 185C.28, Code 2023, is amended to read as 7 follows: 8 185C.28 Use of moneys —— appropriation appropriations . 9 1. Moneys deposited in the corn promotion fund and 10 transferred to Except as provided in subsection 2, moneys 11 transferred or accepted by the board , as provided in section 12 185C.26 , including federal moneys to the extent permitted 13 by federal law, are appropriated and shall be used for 14 the administration of this chapter and for the payment of 15 claims based upon obligations incurred in the performance of 16 activities and functions provided in this chapter . 17 2. Moneys transferred from the corn marketing fund to the 18 grain depositors and sellers indemnity fund as provided in 19 section 185C.26 are appropriated for use by the department of 20 agriculture and land stewardship and the Iowa grain indemnity 21 fund board as provided in chapter 203D. 22 Sec. 17. Section 185C.29, subsection 1, Code 2023, is 23 amended to read as follows: 24 1. After the direct and indirect costs incurred by the 25 secretary and the costs of elections, referendums, necessary 26 board expenses, and administrative costs have been paid, at 27 least seventy-five percent of the remaining moneys from a state 28 assessment deposited in the corn promotion marketing fund shall 29 be used to carry out the purposes of the board as provided in 30 section 185C.11 . 31 Sec. 18. Section 185C.30, Code 2023, is amended to read as 32 follows: 33 185C.30 Bond. 34 Every person occupying a position of trust with the board 35 -8- LSB 2529XC (3) 90 da/ns 8/ 26

S.F. _____ and acting under any provisions a provision of this chapter 1 shall give post a bond in such amount as may be required by the 2 board , the . The premium for which the bond shall be paid out of 3 moneys in the corn promotion fund checkoff account established 4 in section 185C.26 . 5 Sec. 19. Section 185C.33, Code 2023, is amended to read as 6 follows: 7 185C.33 Report. 8 The board shall each year prepare and submit a report 9 summarizing the activities of the board under this chapter to 10 the auditor of state and the secretary of agriculture. The 11 report shall show all income, expenses, and other relevant 12 information concerning fees moneys collected by the board, 13 deposited by the board into an account, transferred to the 14 board, and expended by the board under the provisions of this 15 chapter . 16 Sec. 20. Section 185C.34, Code 2023, is amended to read as 17 follows: 18 185C.34 Not a state agency —— public funds . 19 1. The Except as provided in subsection 2, the Iowa corn 20 promotion board is not a state agency. 21 2. The board is deemed to be a public body for purposes of 22 chapter 12C. 23 3. Moneys deposited in the corn marketing fund and 24 transferred to the corn checkoff account as established in 25 section 185C.26 or the grain depositors and sellers indemnity 26 fund as provided in that section shall be deemed to be public 27 funds under chapter 12C. 28 Sec. 21. Section 203.1, Code 2023, is amended by adding the 29 following new subsection: 30 NEW SUBSECTION . 7A. “Fund” means the grain depositors and 31 sellers indemnity fund created in section 203D.3. 32 Sec. 22. Section 203.4, Code 2023, is amended to read as 33 follows: 34 203.4 Participation in indemnity fund required. 35 -9- LSB 2529XC (3) 90 da/ns 9/ 26

S.F. _____ A grain dealer licensed or required to be licensed pursuant 1 to section 203.3 shall participate in and comply with the grain 2 depositors and sellers indemnity fund as provided in chapter 3 203D . 4 Sec. 23. Section 203.5, subsections 1, 2, 3, and 4, Code 5 2023, are amended to read as follows: 6 1. a. Upon the filing of an application on a form 7 prescribed by the department and compliance with the terms and 8 conditions of this chapter including rules of the department, 9 the department shall issue the applicant a grain dealer’s 10 license. The license expires at the end of the third calendar 11 month following the close of the grain dealer’s fiscal year. 12 A grain dealer’s license may be renewed annually by filing a 13 renewal application on a form prescribed by the department. An 14 application for renewal must be received by the department on 15 or before the end of the third calendar month following the 16 close of the grain dealer’s fiscal year. 17 b. The department shall not issue approve an application for 18 the issuance or renewal of a grain dealer’s license unless the 19 applicant pays to the department all of the following fees: 20 (1) For the issuance of a license, all of the following: a 21 license fee imposed under section 203.6. 22 (a) A license fee imposed under section 203.6 . 23 (b) (2) (a) A In addition to subparagraph (1), for the 24 issuance of a license, a participation fee imposed under 25 section 203D.3A chapter 203D, including section 203D.3B , and 26 any delinquent participation fee imposed under a previous 27 license as provided in that section chapter . 28 (b) This subparagraph is repealed July 1, 2025. 29 (2) (3) For the renewal of a license, all of the following: 30 a renewal fee imposed under section 203.6. 31 (a) A renewal fee imposed under section 203.6 . 32 (b) (4) (a) A In addition to subparagraph (3), for 33 the renewal of a license, a participation fee imposed under 34 section 203D.3A chapter 203D, including section 203D.3B , and 35 -10- LSB 2529XC (3) 90 da/ns 10/ 26

S.F. _____ any delinquent participation fee as provided in that section 1 chapter . 2 (b) This subparagraph is repealed July 1, 2025. 3 (c) (5) (a) A In addition to subparagraphs (3) and (4), 4 for the renewal of a license, any per-bushel fee as provided in 5 section 203D.3A chapter 203D, including section 203D.3B , and 6 any delinquent per-bushel fee and penalty as provided in that 7 section chapter . 8 (b) This subparagraph is repealed July 1, 2025. 9 2. a. The department shall notify a licensed grain dealer 10 of any delinquency in the payment of a participation fee or 11 per-bushel fee as provided in section 203D.3A chapter 203D, 12 including section 203D.3B . The department shall suspend the 13 grain dealer’s license thirty days after delivering the notice 14 unless the licensed grain dealer pays the delinquent fee. 15 b. This subsection is repealed July 1, 2025. 16 3. a. The department may suspend or revoke the license 17 of a grain dealer who discounts the purchase price paid for 18 grain nominally for the participation fee or per-bushel fee as 19 provided in section 203D.3A chapter 203D, including section 20 203D.3B, while that fee is not in effect. 21 b. This subsection is repealed July 1, 2025. 22 4. a. A grain dealer license which that has expired may 23 be reinstated by the department upon receipt the department’s 24 approval of a proper renewal application, and receipt of the 25 renewal fee and a reinstatement fee as provided in section 26 203.6 , and any delinquent participation fee or per-bushel fee 27 and penalty as provided in section 203D.3A . 28 b. (1) In addition to paragraph “a” , a grain dealer license 29 that has expired may be reinstated by the department upon 30 receipt of any delinquent participation fee or per-bushel fee 31 and penalty as provided in chapter 203D, including section 32 203D.3B. 33 (2) This paragraph is repealed July 1, 2025. 34 c. The applicant must file the renewal application and 35 -11- LSB 2529XC (3) 90 da/ns 11/ 26

S.F. _____ pay the fees and penalty described in this subsection to the 1 department within thirty days from the date of expiration of 2 the grain dealer license. 3 Sec. 24. Section 203C.1, Code 2023, is amended by adding the 4 following new subsection: 5 NEW SUBSECTION . 9A. “Fund” means the grain depositors and 6 sellers indemnity fund created in section 203D.3. 7 Sec. 25. Section 203C.12, Code 2023, is amended to read as 8 follows: 9 203C.12 Participation in fund required. 10 A person licensed to operate a warehouse under this chapter 11 shall participate in and comply with the grain depositors and 12 sellers indemnity fund as provided in chapter 203D . 13 Sec. 26. Section 203C.37, subsections 1, 2, and 3, Code 14 2023, are amended to read as follows: 15 1. a. Upon the filing of an application pursuant to section 16 203C.7 and compliance with the terms and conditions of this 17 chapter including rules of the department, the department 18 shall issue the applicant a warehouse operator’s license. 19 The license expires at the end of the third calendar month 20 following the close of the warehouse operator’s fiscal year. 21 A warehouse operator’s license may be renewed annually by 22 the filing of a renewal application on a form prescribed by 23 the department pursuant to section 203C.7 . An A renewal 24 application for renewal must be received by the department on 25 or before the end of the third calendar month following the 26 close of the warehouse operator’s fiscal year. 27 b. The department shall not approve an application for the 28 issuance or renewal of a warehouse operator’s license unless 29 the applicant pays to the department all of the following fees: 30 (1) For the issuance of a license, all of the following: a 31 license fee as provided in section 203C.33. 32 (a) A license fee imposed under section 203C.33 . 33 (b) A participation fee imposed under section 203D.3A , 34 and any delinquent participation fee imposed under a previous 35 -12- LSB 2529XC (3) 90 da/ns 12/ 26

S.F. _____ license as provided in that section. 1 (2) (a) In addition to subparagraph (1), for the issuance 2 of a license, a participation fee imposed under chapter 203D, 3 including section 203D.3B, and any delinquent participation fee 4 imposed under a previous license as provided in that chapter. 5 (b) This subparagraph is repealed July 1, 2025. 6 (2) (3) For the renewal of a license, all of the following: 7 a renewal fee as provided in section 203C.33. 8 (a) A renewal fee imposed under section 203C.33 . 9 (b) A participation fee imposed under section 203D.3A , and 10 any delinquent participation fee as provided in that section. 11 (4) (a) In addition to subparagraph (3), a participation 12 fee imposed under chapter 203D, including section 203D.3B, and 13 any delinquent participation fee as provided in that chapter. 14 (b) This subparagraph is repealed July 1, 2025. 15 2. a. The failure of a warehouse operator to file a renewal 16 an application to renew a warehouse operator’s license and to 17 pay a renewal fee as provided for in section 203C.33 and any 18 delinquent participation fee as provided in section 203D.3A , 19 on or before the end of the third calendar month following the 20 close of the licensee’s fiscal year shall cause a license to 21 expire. 22 b. (1) In addition to paragraph “a” , the failure of a 23 warehouse operator to file an application to renew a warehouse 24 operator’s license and to pay a participation fee and any 25 delinquent participation fee as provided in chapter 203D, 26 including section 203D.3B, on or before the end of the third 27 calendar month following the close of the licensee’s fiscal 28 year shall cause a license to expire. 29 (2) This paragraph is repealed July 1, 2025. 30 3. a. A warehouse license that has expired may be 31 reinstated by the department upon receipt of a proper renewal 32 application , to renew the warehouse operator’s license and 33 the renewal fee and the reinstatement fee as provided for 34 in section 203C.33 , and any delinquent participation fee as 35 -13- LSB 2529XC (3) 90 da/ns 13/ 26

S.F. _____ provided in section 203D.3A . The applicant must file the 1 renewal application and pay the fees to the department within 2 thirty days from the date that the warehouse license expires. 3 b. (1) In addition to paragraph “a” , a warehouse license 4 that has expired may be reinstated by the department upon 5 receipt of any delinquent participation fee as provided in 6 chapter 203D, including section 203D.3B. The applicant must 7 pay the fee to the department within thirty days from the date 8 that the warehouse license expires. 9 (2) This paragraph is repealed July 1, 2025. 10 Sec. 27. Section 203D.2, Code 2023, is amended to read as 11 follows: 12 203D.2 Persons participating in fund —— compliance . 13 1. All licensed grain dealers , including persons applying 14 to be issued grain dealer licenses, as provided in chapter 203 15 and licensed warehouse operators , including persons applying to 16 be issued warehouse operator licenses as provided in chapter 17 203C, shall participate in the fund. 18 2. a. Participation in the fund by a licensed grain dealer 19 includes complying with this chapter and chapter 203. 20 b. Participation in the fund by a licensed warehouse 21 operator includes complying with this chapter and chapter 203C. 22 3. This section does not require participation in the fund 23 to include payment of a fee for deposit into the fund. 24 Sec. 28. NEW SECTION . 203D.2A Persons participating in fund 25 —— payment into fund. 26 1. Participation in the fund by licensed grain dealers, 27 including persons applying to be issued grain dealer 28 licenses under chapter 203, includes payment into the fund of 29 participation fees, per-bushel fees, and delinquency penalties 30 as provided in this chapter, including section 203D.3B. 31 2. Participation in the fund by licensed warehouse 32 operators, including persons applying to be issued warehouse 33 operator licenses under chapter 203D, includes payment into 34 the fund of participation fees as provided in this chapter, 35 -14- LSB 2529XC (3) 90 da/ns 14/ 26

S.F. _____ including section 203D.3B. 1 3. This section is repealed July 1, 2025. 2 Sec. 29. Section 203D.3, subsection 2, Code 2023, is amended 3 to read as follows: 4 2. The fund consists of all of the following: 5 a. (1) Participation fees paid to the department by 6 licensed grain dealers and persons applying to be issued a 7 grain dealer’s license dealer licenses as provided in this 8 chapter, including section 203D.3A 203D.3B . 9 (2) This paragraph is repealed July 1, 2025. 10 b. (1) Participation fees paid to the department by 11 licensed warehouse operators and persons applying to be issued 12 a warehouse operator’s license operator licenses as provided in 13 this chapter, including section 203D.3A 203D.3B . 14 (2) This paragraph is repealed July 1, 2025. 15 c. (1) Per-bushel fees paid to the department by licensed 16 grain dealers as provided in this chapter, including section 17 203D.3A 203D.3B . 18 (2) This paragraph is repealed July 1, 2025. 19 d. (1) Delinquency penalties as provided in this chapter, 20 including section 203D.3B . 21 (2) This paragraph is repealed July 1, 2025. 22 e. The amount of the state assessment on soybeans collected 23 pursuant to chapter 185 and transferred to the fund pursuant to 24 section 185.26 and this chapter, including section 203D.3B. 25 f. The amount of the state assessment on corn collected 26 pursuant to chapter 185C and transferred to the fund pursuant 27 to section 185C.26 and this chapter, including section 203D.3B. 28 e. g. Amounts collected by the state pursuant to legal 29 action on behalf of the fund. 30 f. h. Interest, earnings on investments, property, or 31 securities acquired through the use of moneys in the fund. 32 Sec. 30. Section 203D.3A, Code 2023, is amended by adding 33 the following new subsection: 34 NEW SUBSECTION . 3. This section is repealed July 1, 2025. 35 -15- LSB 2529XC (3) 90 da/ns 15/ 26

S.F. _____ Sec. 31. NEW SECTION . 203D.3B Grain depositors and sellers 1 indemnity fund —— administration of fees. 2 1. The board shall annually review the debits of and credits 3 to the grain depositors and sellers indemnity fund. 4 2. a. Not later than May 1 of each year, the board shall 5 determine whether to do all of the following: 6 (1) Impose, reinstate, adjust, or waive the participation 7 fee as provided in this chapter, including sections 203D.3A and 8 203D.5. 9 (2) Impose, reinstate, adjust, or waive the per-bushel fee 10 as provided in this chapter, including sections 203D.3A and 11 203D.5. 12 b. Based on the board’s determination, the board shall 13 impose or reinstate the participation fee and per bushel fee, 14 adjust those fees that were effective on the previous July 1, 15 or waive those fees that were in effect on the previous July 1, 16 in accordance with chapter 17A. The imposition, reinstatement, 17 adjustment, or waiver of the fees shall become effective as 18 follows: 19 (1) For the participation fee, on the following July 1. 20 However, the grain dealer or warehouse operator shall continue 21 to pay the participation fee at the rate in effect on the prior 22 July 1 until the grain dealer or warehouse operator has paid 23 the amount owing. 24 (2) For a per-bushel fee, on the following July 1. 25 c. This subsection is repealed July 1, 2025. 26 3. a. Notwithstanding subsection 2, if on the last date of 27 the grain depositors and sellers indemnity fund’s fiscal year 28 as provided in section 203D.3, moneys in the fund exceed twenty 29 million dollars, less any encumbered balances or pending or 30 unsettled claims, all of the following apply: 31 (1) The participation fee shall be waived and shall not be 32 assessable or owing for the following fiscal year of the fund. 33 However, the grain dealer or warehouse operator shall continue 34 to pay any owed participation fee that was in effect prior to 35 -16- LSB 2529XC (3) 90 da/ns 16/ 26

S.F. _____ July 1. 1 (2) The per-bushel fee shall be waived and shall not be 2 assessable or owing. 3 b. Notwithstanding subsection 2, the participation fee and 4 per-bushel fee shall be reinstated at any time if the moneys 5 in the fund, less any unencumbered balances or pending or 6 unsettled claims, equal ten million dollars or less. 7 c. This subsection is repealed July 1, 2025. 8 4. a. Not later than May 1 of each year, the board shall 9 determine whether to do all of the following: 10 (1) Suspend or reinstate the state assessment on soybeans 11 as provided in section 185.26. 12 (2) Suspend or reinstate the state assessment on corn as 13 provided in section 185C.26. 14 b. The fees described in this subsection shall be suspended 15 or reinstated effective the following July 1. 16 5. a. Notwithstanding subsection 4, if on the last date of 17 the grain depositors and sellers indemnity fund’s fiscal year 18 as provided in section 203D.3, moneys in the fund exceed twenty 19 million dollars, less any encumbered balances or pending or 20 unsettled claims, all of the following apply: 21 (1) The amount of the state assessment imposed on soybeans 22 shall be suspended as provided in section 185.26. 23 (2) The amount of the state assessment imposed on corn shall 24 be suspended as provided in section 185C.26. 25 b. Notwithstanding subsection 4, if at any time moneys in 26 the fund do not exceed ten million dollars, less any encumbered 27 balances or pending or unsettled claims, all of the following 28 apply: 29 (1) The amount of the state assessment on soybeans shall be 30 reinstated as provided in section 185.26. 31 (2) The amount of the state assessment on corn shall be 32 reinstated as provided in section 185C.26. 33 6. a. If the amounts of the state assessments imposed on 34 soybeans and corn are suspended as provided in this section, 35 -17- LSB 2529XC (3) 90 da/ns 17/ 26