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House File 2534 - IntroducedA Bill ForAn Act 1providing for a state assessment for clean water
2imposed on agricultural commodities, including procedures
3for referendums to establish, continue, or terminate the
4state assessment, the transfer of moneys to the department
5of agriculture and land stewardship, state sales and use
6taxes, the natural resources and outdoor recreation trust
7fund, the establishment of a commission and fund, and the
8appropriation of moneys.
9BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1DIVISION I
2IOWA DAIRY INDUSTRY COMMISSION AND
3IOWA STATE DAIRY ASSOCIATION
4 Section 1. Section 179.1, Code 2022, is amended by adding
5the following new subsections:
6 NEW SUBSECTION. 01. “Assessment” means an excise tax on the
7sale of milk which may include a state assessment for direct
8use and a state assessment for clean water.
9 NEW SUBSECTION. 2A. “Federal Act” means the Dairy
10Production Stabilization Act of 1983, 7 U.S.C. §4501 et seq.
11 NEW SUBSECTION. 3A. “National assessment” means an excise
12tax on the sale of milk imposed pursuant to the federal Act.
13 NEW SUBSECTION. 10. “Secretary” means the secretary of
14agriculture.
15 Sec. 2. Section 179.1, subsection 2, Code 2022, is amended
16to read as follows:
172. The term “commission” shall mean “Commission” means the
18Iowa dairy industry commission created in section 179.2.
19 Sec. 3. Section 179.2, subsections 4, 5, 6, and 7, Code
202022, are amended to read as follows:
214. When a national promotional order is established by the
22United States department of agriculture pursuant to the Dairy
23Product Stabilization Act of 1983 federal Act, collection of
24the excise tax state assessment for direct use described in
25section 179.5 shall be suspended for the period in which the
26national order is in effect. The commission shall continue to
27operate thereafter for only the period of time necessary to pay
28refunds and disburse the funds moneys remaining in the dairy
29industry fund for the purposes enumerated in administering
30 this chapter. Upon completion of these acts, the existence of
31the Iowa dairy industry commission shall be suspended. The
32secretary of agriculture shall certify the suspension of the
33commission as of a date certain to the Iowa dairy industry
34 commission and the Iowa state dairy association. When the
35existence of the commission is suspended, the terms of office
-1-1being served by individual commissioners shall terminate.
25. When the national promotional order expires, the period
3of suspension of the excise tax state assessment for direct use
4established in section 179.5 shall terminate and the secretary
5of agriculture shall take the steps necessary to collect that
6excise tax state assessment and otherwise fulfill the duties of
7the commission, except that of expending funds moneys collected
8under the excise tax that state assessment, until those
9duties can be resumed by the reactivated commission. When the
10national promotional order expires, the period of suspension of
11the commission shall terminate. The secretary of agriculture
12 shall call the first meeting of the reactivated commission.
13Upon reactivation, the commission shall reimburse the secretary
14of agriculture for expenses incurred in carrying out the duties
15provided in this subsection.
166. When the national dairy promotion program expires and
17the suspension of the Iowa dairy industry commission terminates
18pursuant to subsection 5, all first purchasers shall, in a
19manner designed to reflect their proportionate contributions
20to the national dairy promotion program in its most recently
21completed fiscal year, nominate two resident producers for each
22of the sixteen offices of the commission. The secretary of
23agriculture shall then appoint one nominee from each set of
24two nominees as commissioners of the reactivated Iowa dairy
25industry commission. The secretary of agriculture shall
26stagger the terms of the reactivated commission resulting in
27as nearly as possible one third of the commissioners serving
28for one year, one third of the commissioners serving for two
29years, and one third of the commissioners serving for three
30years. After the initial staggering of terms by the secretary,
31commissioners shall be appointed to three-year terms.
327. The establishment or expiration of a national
33promotional order shall not affect the imposition of a state
34assessment for clean water established pursuant to section
35179.13A.
-2- 17. 8. After the reactivated commission has been formed,
2nominations for commissioners shall be made by first
3purchasers in a manner designed to reflect their proportionate
4contributions to the Iowa dairy industry commission in its most
5recently completed fiscal year.
6 Sec. 4. Section 179.3, Code 2022, is amended by adding the
7following new subsection:
8 NEW SUBSECTION. 10. To cooperate with the division of soil
9conservation and water quality of the department of agriculture
10and land stewardship in transferring moneys collected from
11the state assessment for clean water to the clean water fund
12created in section 466B.51.
13 Sec. 5. Section 179.4, Code 2022, is amended to read as
14follows:
15179.4 Expenditure of funds Use of moneys.
16Funds collected through Moneys collected by the commission
17from the excise tax are to state assessment for direct use
18imposed pursuant to section 179.5 shall be used for purposes
19of advertising and promotion, product, process, and nutrition,
20dietetics, and physiology research, nutrition education, public
21relations, research and development, and for other activities
22that contribute to producer efficiency and productivity.
23In addition, the commission shall use these funds moneys
24 to maintain existing markets, to make contributions to
25organizations working toward the purposes of this section,
26and to assist in the development of new or enlarged markets
27for milk, both domestic and foreign. The primary purpose for
28use of these funds moneys is to increase consumption of milk.
29The commission may contract for advertising, publicity, sales
30promotion, research, and educational services the committee
31 commission deems appropriate to further the objectives of this
32section.
33 Sec. 6. Section 179.5, Code 2022, is amended to read as
34follows:
35179.5 Excise tax State assessments — administration of
-3-1moneys — appropriation.
21. a. There is levied and imposed an excise tax a state
3assessment for direct use on all producers within the state
4at a rate of three-fourths of one percent of the gross value
5of milk produced in the state and which may be continued by
6special referendum as provided in section 179.13A.
7b. There is imposed a state assessment for clean water on
8all producers within the state at a rate established by the
9commission not to exceed the rate of the state assessment for
10direct use described in paragraph “a”, if the state assessment
11for clean water is established or continued pursuant to section
12179.13A.
132. All taxes levied and The state assessment for direct use
14and the state assessment for clean water imposed under this
15chapter shall be deducted from the sales price received by the
16producer and shall be collected by the first purchaser, except
17as follows:
18a. If the producer produces milk from cows and sells the
19milk directly to the consumer, the taxes each state assessment
20 shall be remitted by that producer.
21b. If the producer sells milk to a first purchaser outside
22the state, the taxes are each state assessment is due and
23payable by that producer before the shipment is made, except
24that the commission may make agreements with extra state
25purchasers for the keeping of records and the collection of the
26taxes each state assessment as necessary to secure the payment
27of the taxes each state assessment within the time fixed by
28this chapter.
293. All taxes levied and The state assessment for direct use
30and the state assessment for clean water if established and
31 imposed under this chapter, and any other contributions made to
32the dairy industry commission, shall be paid to and collected
33by the commission within thirty days after the end of the month
34during which the milk was marketed.
354. The commission shall remit moneys collected from
-4-1 the taxes state assessment for direct use and any other
2contributions obtained by the commission to the treasurer of
3the state each quarter, and at the same time shall render to
4the director of the department of administrative services an
5itemized and verified report showing the source from which
6the taxes moneys collected from the state assessment for
7direct use and voluntary contributions were obtained. All
8taxes moneys collected from the state assessment for direct
9use and voluntary contributions received, collected, and
10remitted by the commission shall be placed in a special fund
11by the treasurer of state and the director of the department
12of administrative services, to be known as the “dairy industry
13fund” to be used by the Iowa dairy industry commission for
14the purposes set out in this chapter and to administer and
15enforce the laws relative to this chapter. The department of
16administrative services shall transfer moneys from the fund
17to the commission for deposit into an account established
18by the commission in a qualified financial institution.
19The department shall transfer the moneys as provided in a
20resolution adopted by the commission. However, the department
21is only required to transfer moneys once during each day and
22only during hours when the offices of the state are open.
23Moneys deposited in the fund and transferred to the commission
24as provided in this section are appropriated and shall be used
25for the purpose of carrying out the provisions of this chapter.
265. The commission may deposit moneys collected from the
27state assessment for clean water in a qualified financial
28institution until transferred to the clean water fund
29created in section 466B.51. During the period when a
30national promotional order is in effect, the Iowa state dairy
31association shall deposit the moneys collected from that
32state assessment in a qualified financial institution until
33transferred to the clean water fund. If the state assessment
34for clean water is terminated as provided in section 179.13A,
35the remaining moneys collected from that state assessment shall
-5-1be immediately transferred to the clean water fund.
26. The commission may require that the invoice also show the
3total amount of any state assessment for direct use deducted
4from the sales price. If a national assessment is being
5collected, the Iowa state dairy association may require that
6the invoice for the national assessment also show the total
7amount of any national assessment, if permitted by federal law.
8If a state assessment for clean water is collected, the first
9purchaser shall furnish the producer at the time of payment an
10invoice showing the total amount of the state assessment for
11clean water deducted from the sales price.
124. 7. a. A person from whom the excise tax provided in
13this chapter a state assessment for direct use is collected
14may, by application filed with the commission within thirty
15days after the collection of the tax state assessment, have the
16tax state assessment refunded to that person by the commission.
17b. If a state assessment for direct use is imposed, a person
18from whom a state assessment for clean water is collected
19may file an application for a refund with the commission.
20The application for a refund shall allow the person to elect
21whether the refund is for the state assessment for direct
22use or the state assessment for clean water or both. The
23commission shall not approve an application unless the
24application indicates the election. The commission shall
25forward an approved application for a refund of the state
26assessment to the division of soil conservation and water
27quality for payment.
28c. If a national assessment is imposed and a refund of the
29national assessment is authorized, a person from whom a state
30assessment for clean water is collected may file an application
31for a refund with the Iowa state dairy association. The
32application shall to the extent allowed by federal law allow
33the person to elect whether the refund is for the national
34assessment or the state assessment for clean water or both.
35The association shall forward the approved application for a
-6-1refund of the state assessment for clean water to the division
2of soil conservation and water quality for payment.
3 Sec. 7. Section 179.6, Code 2022, is amended to read as
4follows:
5179.6 Records of producers, — first purchasers.
6Every producer shipping milk to a first purchaser outside of
7Iowa who is not by agreement with the commission collecting the
8tax state assessment for direct use or the state assessment for
9clean water imposed by this chapter, and every first purchaser
10within the state, and every producer distributing milk directly
11to the consumer, shall keep a complete and accurate record of
12all milk produced or purchased by the person during the period
13for which an excise tax levy a state assessment is imposed
14under this chapter. The records shall be in the form and
15contain the information prescribed by the commission, shall be
16preserved by the person charged with their making for a period
17of two years, and shall be offered or submitted for inspection
18at any time upon written or oral request by the commission or
19its duly authorized agent or employee.
20 Sec. 8. Section 179.8, Code 2022, is amended to read as
21follows:
22179.8 Payment of expenses — limitation.
231. No Any part of the expense incurred by the commission
24shall not be paid out of moneys in the state treasury except
25moneys transferred to the commission from the dairy industry
26fund. Moneys transferred from the fund to the commission, as
27provided in section 179.5, shall be used for the payment of
28all salaries and other expenses necessary to carry out the
29provisions of this chapter. However, in no event shall the
30total expenses exceed the total taxes amount collected from the
31state assessment for direct use collected and transferred from
32the fund to the commission.
332. No more than five percent of the excise tax collected
34 moneys collected from the state assessment for direct use and
35received by the commission pursuant to section 179.5 shall be
-7-1utilized for administrative expenses of the commission.
2 Sec. 9. Section 179.9, Code 2022, is amended to read as
3follows:
4179.9 Investigations by commission.
5The commission shall have the power to cause its authorized
6agents to enter upon the premises of any person charged by this
7chapter or by agreement with the commission with the collection
8of the excise tax a state assessment for direct use or a state
9assessment for clean water imposed by this chapter, and to
10cause to be examined by any such agent any books, records,
11documents, or other instruments bearing upon the amount of
12moneys from such tax state assessment collected or to be
13collected by such person; provided that the commission has
14reasonable ground to believe that all moneys from the tax state
15assessments herein levied has imposed have not been collected,
16or if it has they have not been fully accounted for as herein
17provided.
18 Sec. 10. Section 179.10, Code 2022, is amended to read as
19follows:
20179.10 Report.
21The commission shall each year prepare and submit a report
22summarizing the activities of the commission under this chapter
23to the auditor of state and the secretary of agriculture. The
24report shall show all income, expenses, and other relevant
25information concerning fees the state assessment for direct
26use collected and expended under this chapter. The report
27shall also show the collection and transfer of moneys received
28from any state assessment for clean water imposed under this
29chapter.
30 Sec. 11. Section 179.13, Code 2022, is amended to read as
31follows:
32179.13 Referendum Initial referendum.
331. a. At a time designated by the commission within
34eighteen months after termination of the national promotional
35order made pursuant to the Dairy Production Stabilization
-8-1 federal Act of 1983, 7 U.S.C. §4501 et seq., the commission
2shall conduct a an initial referendum under administrative
3procedures prescribed by the department.
42. b. Upon signing a statement certifying to the department
5that the person is a bona fide producer as defined in this
6chapter, each producer is entitled to one vote in each initial
7 referendum. When the secretary is required to determine the
8approval or disapproval of producers under this section, the
9secretary shall consider the approval or disapproval of a
10cooperative association of producers, engaged in a bona fide
11manner in marketing milk, as the approval or disapproval of the
12producers who are members of or contract with the cooperative
13association of producers. If a cooperative association
14elects to vote on behalf of its members, the cooperative
15association shall provide each producer on whose behalf the
16cooperative association is expressing approval or disapproval
17with a description of the question presented in the initial
18 referendum together with a statement of the manner in which
19the cooperative association intends to cast its vote on behalf
20of the membership. The information shall inform the producer
21of procedures to follow to cast an individual ballot if the
22producer chooses to do so within the period of time established
23by the secretary for casting ballots. The notification shall
24be made at least thirty days prior to the initial referendum
25and shall include an official ballot. The ballots shall be
26tabulated by the secretary and the vote of the cooperative
27association shall be adjusted to reflect the individual votes.
283. c. The department shall count and tabulate the ballots
29filed during the initial referendum within thirty days of the
30close of the initial referendum. If from the tabulation the
31department determines that a majority of the total number of
32producers voting in the initial referendum favors the proposal,
33the excise tax state assessment for direct use provided for in
34this chapter shall be continued. The ballots cast pursuant
35to this section constitute complete and conclusive evidence
-9-1for use in determinations made by the department under this
2chapter.
34. 2. The secretary may conduct a special referendum at any
4time after the Iowa dairy industry commission is reactivated,
5and shall hold a conduct a special referendum on request upon
6receiving a petition of a representative group comprising ten
7percent or more of the number of producers eligible to vote,
8to determine whether the producers favor the termination or
9 suspension or termination of the excise tax state assessment
10for direct use. The secretary shall suspend or terminate
11collection of the excise tax within state assessment for direct
12use no later than six months after the secretary determines
13that suspension or termination of the excise tax state
14assessment is favored by a majority of the producers voting
15in the special referendum, and shall suspend or terminate the
16excise tax state assessment in an orderly manner as soon as
17practicable after the determination.
18 Sec. 12. NEW SECTION. 179.13A Referendums and special
19questions — establishment, increase, or termination of state
20assessment.
211. a. If a state assessment for direct use is established,
22and upon receipt of a petition of producers that otherwise
23complies with requirements to conduct an initial referendum
24under section 179.13, subsection 1, the secretary shall conduct
25a special referendum to determine whether to establish a state
26assessment for clean water.
27b. Upon receipt of a petition of producers that otherwise
28complies with requirements to conduct an initial referendum
29under section 179.13, the secretary shall include as part of
30the initial referendum conducted pursuant to section 179.13,
31subsection 1, a separate special question whether to establish
32a state assessment for clean water, if the secretary determines
33the inclusion of the special question is cost-effective or the
34petition demands inclusion.
35c. The secretary shall conduct the special referendum under
-10-1this subsection or include the special question as part of an
2initial or special referendum conducted under section 179.13,
3subsection 1, in consultation with the commission and which
4may be based on the same procedures for conducting an initial
5referendum under section 179.13.
6d. If the secretary determines that the establishment of
7a state assessment for clean water is favored by a majority
8of the producers voting in a special referendum under this
9subsection or in an initial referendum conducted under section
10179.13, subsection 1, that includes a special question as
11provided in paragraph “b”, the state assessment shall commence
12on a date determined by the secretary after consultation with
13the commission but not later than six months after the date
14that the special or initial referendum was conducted.
152. a. If a national assessment is being collected, and upon
16receipt of a petition of producers that otherwise complies with
17requirements to conduct an initial referendum under section
18179.13, subsection 1, the secretary shall conduct a special
19referendum to determine whether to establish a state assessment
20for clean water.
21b. Upon receipt of a petition of producers that otherwise
22complies with requirements to conduct an initial referendum
23under section 179.13, subsection 1, the secretary shall include
24as part of the referendum to establish a national assessment,
25a separate special question whether to establish a state
26assessment for clean water, if the secretary determines the
27inclusion of the special question complies with federal law and
28either is cost-effective or the petition demands inclusion.
29c. The secretary shall conduct the special referendum under
30this subsection or include the special question as part of a
31referendum to establish a national referendum in consultation
32with the Iowa state dairy association and which may be based on
33the same procedures for conducting an initial referendum under
34section 179.13, subsection 1, or a referendum to establish a
35national assessment.
-11- 1d. If the secretary determines that the establishment of a
2state assessment for clean water is favored by a majority of
3the producers voting in a special referendum conducted under
4paragraph “a” or a referendum to establish a national assessment
5that includes a special question as provided in paragraph “b”,
6the state assessment shall commence on a date determined by
7the secretary after consultation with the Iowa state dairy
8association but not later than six months after the date that
9the special referendum or referendum establishing a national
10assessment was conducted.
113. a. If the rate of the national assessment has been
12increased, and upon receipt of a petition of producers that
13otherwise complies with requirements to conduct an initial
14referendum under section 179.13, subsection 1, the secretary
15shall conduct a special referendum to determine whether to
16increase the rate of the state assessment for clean water to
17a rate established by the Iowa state dairy association not to
18exceed the rate of the national assessment.
19b. Upon receipt of a petition of producers that otherwise
20complies with requirements to conduct an initial referendum
21under section 179.13, subsection 1, the secretary shall include
22as part of a referendum to increase the rate of the national
23assessment, a separate special question whether to increase
24the rate of the state assessment for clean water at a rate
25established by the Iowa state dairy association not to exceed
26the increase in the national assessment, if the secretary
27determines the inclusion of the special question complies
28with federal law and is either cost-effective or the petition
29demands inclusion.
30c. The secretary shall conduct the special referendum under
31this subsection, or include the special question as part of a
32referendum to increase the national assessment, in consultation
33with the Iowa state dairy association and which may be based on
34the same procedures for conducting an initial referendum under
35section 179.13, subsection 1, or a referendum to increase the
-12-1rate of the national assessment.
2d. If the national assessment is increased, and the
3secretary determines that an increase in the state assessment
4for clean water is favored by a majority of the producers
5voting in a special referendum or referendum to increase
6the rate of the national assessment, the rate of the state
7assessment shall be increased on a date determined by the
8secretary after consultation with the Iowa state dairy
9association but not later than six months after the date that
10the special referendum or referendum establishing a national
11assessment was conducted. If a special referendum or special
12question to increase the rate of the state assessment for clean
13water does not pass, the result of the vote shall not affect
14the existence or length of the period when the state assessment
15is in effect.
164. a. If a state assessment for direct use is imposed,
17and upon receipt of a petition of producers that otherwise
18complies with requirements to conduct a special referendum
19under section 179.13, subsection 2, the secretary shall conduct
20a special referendum to determine whether to terminate the
21state assessment for clean water.
22b. Upon receipt of a petition of producers that otherwise
23complies with requirements to conduct a special referendum
24under section 179.13, subsection 2, the secretary shall include
25as part of a special referendum to suspend or terminate the
26state assessment for direct use conducted pursuant to section
27179.13, subsection 2, a separate special question whether
28to terminate the state assessment for clean water, if the
29secretary determines the inclusion of the special question is
30cost-effective or the petition demands inclusion.
31c. The secretary shall conduct the special referendum under
32this subsection or include the special question as part of a
33special referendum conducted under section 179.13, subsection
342, in consultation with the commission and which may be based
35on the same procedures for conducting a special referendum
-13-1under section 179.13, subsection 2.
2d. If the secretary determines that the termination of
3a state assessment for clean water is favored by a majority
4of the producers voting in a special referendum under this
5subsection, or a special referendum conducted under section
6179.13, subsection 2, the state assessment shall terminate on a
7date determined by the secretary after consultation with the
8commission but not later than six months after the date that
9the special or initial referendum was conducted. The secretary
10shall terminate the state assessment in an orderly manner as
11soon as practical.
125. The secretary shall terminate the state assessment for
13clean water upon determining that the state assessment for
14direct use and the national assessment are terminated. The
15secretary shall terminate the state assessment for clean water
16in an orderly manner as soon as practical.
17DIVISION II
18IOWA BEEF CATTLE PRODUCERS ASSOCIATION — EXECUTIVE COMMITTEE
19 Sec. 13. Section 181.1, subsection 10, Code 2022, is amended
20to read as follows:
2110. “State assessment” means an excise tax on the sale of
22cattle imposed pursuant to this chapter which may include a
23state assessment for direct use and a state assessment for
24clean water.
25 Sec. 14. Section 181.2, Code 2022, is amended by adding the
26following new subsection:
27 NEW SUBSECTION. 5. Cooperate with the division of soil
28conservation and water quality of the department of agriculture
29and land stewardship in transferring moneys collected from
30the state assessment for clean water to the clean water
31fund created in section 466B.51 and for being reimbursed for
32reasonable expenses incurred in conducting an initial or
33special referendum to establish, continue, or terminate a state
34assessment for clean water.
35 Sec. 15. Section 181.7A, Code 2022, is amended to read as
-14-1follows:
2181.7A Commencement of federal assessment — suspension and
3recommencement of state assessment — rate.
41. Prior to the commencement of the collection of
5the federal assessment, the executive committee may seek
6certification as a qualified state beef council within the
7meaning of the federal Act.
82. The executive committee shall suspend the state
9assessment for direct use upon collection of the federal
10assessment. The state assessment for direct use shall
11recommence upon the earlier of the following:
12a. The noncollection of the federal assessment. The
13recommenced state assessment for direct use shall be imposed
14for a four-year period. Its effective date shall be the first
15date for which the federal assessment is not collected.
16b. The passage of a special referendum pursuant to section
17181.19 regardless of whether a federal assessment is being
18collected.
193. The rate of the recommenced state assessment shall be the
20same as the rate that was last in effect under section 181.19
21immediately prior to the suspension of the state assessment.
224. The state assessment for clean water shall continue to be
23imposed during any period of suspension of the state assessment
24for direct use so long as the state assessment for clean water
25is not terminated pursuant to section 181.19A.
26 Sec. 16. Section 181.8, Code 2022, is amended to read as
27follows:
28181.8 Executive committee — entering premises — examining
29records.
30The executive committee may authorize its agents to enter
31at a reasonable time upon the premises of any purchaser
32charged by this chapter with remitting the a state assessment
33for direct use or a state assessment for clean water to the
34executive committee, and to. The agents may examine records
35and other instruments relating to the collection of the a state
-15-1assessment. However, the executive committee must first have
2reasonable grounds to believe that the a state assessment has
3not been remitted or fully accounted for.
4 Sec. 17. Section 181.11, Code 2022, is amended to read as
5follows:
6181.11 Collection of state assessment assessments.
71. A state assessment for direct use or a state assessment
8for clean water imposed as provided in this chapter shall be
9levied and collected from the purchaser on each sale of cattle
10at a rate provided in this chapter. The state assessment for
11direct use or a state assessment for clean water shall be
12imposed on any person selling cattle and shall be deducted
13by the purchaser from the price paid to the seller. The
14purchaser, at the time of the sale, shall make and deliver to
15the seller a separate invoice for each sale showing the names
16and addresses of the seller and the purchaser, the number of
17cattle sold, and the date of sale. The purchaser shall forward
18the state assessment for direct use and any state assessment
19for clean water to the executive committee at a time prescribed
20by the executive committee, but not later than the last day of
21the month following the end of the prior reporting period in
22which the cattle are sold.
232. The executive committee may enter into arrangements with
24persons purchasing cattle outside of this state for remitting
25the state assessment for direct use and any state assessment
26for clean water by such purchasers.
27 Sec. 18. Section 181.12, Code 2022, is amended to read as
28follows:
29181.12 Remission of state assessment assessments on
30application.
311. a. A person from whom a state assessment for direct
32use is collected may, by written application filed with the
33executive committee within ninety days after its collection,
34have the amount remitted to the person by the executive
35committee.
-16- 1b. A person from whom a state assessment for clean water is
2collected may, by written application filed with the council
3as provided in paragraph “a”, have the amount remitted to the
4person by the division of soil conservation and water quality
5of the department of agriculture and land stewardship. Within
6sixty days after its collection, the council shall transmit any
7approved application to the division for a refund payment.
82. The information that the a state assessment described
9in subsection 1 is refundable and the address of the executive
10committee to which application for a refund may be made shall
11appear on the invoice of sale form supplied by the purchaser to
12the producer near the area on the form which shows the amount
13of the state assessment paid.
143. a. The executive committee shall furnish uniform
15application for refund forms and make the refund forms readily
16available to all producers.
17b. The form shall allow the applicant to elect whether the
18refund is for the state assessment for direct use or the state
19assessment for clean water or both. The council shall not
20approve an application unless the application indicates the
21election.A purchaser charged by this chapter with remitting
22the a state assessment shall make the forms readily available
23to all producers.
24 Sec. 19. Section 181.13, Code 2022, is amended to read as
25follows:
26181.13 Administration of moneys originating from state
27assessment assessments — appropriation.
281. a. All moneys, other than moneys from the state
29assessments imposed, collected assessment for clean water under
30this chapter shall be paid to and collected by the executive
31committee and deposited with the treasurer of state in a
32separate cattle promotion fund which shall be created by the
33treasurer of state. The department of administrative services
34shall transfer moneys from the fund to the executive committee
35for deposit into an account established by the executive
-17-1committee in a qualified financial institution. The department
2shall transfer the moneys as provided in a resolution adopted
3by the executive committee. However, the department is only
4required to transfer moneys once during each day and only
5during hours when the offices of the state are open. From
6the moneys, other than moneys from the state assessment for
7clean water, collected, deposited, and transferred to the
8executive committee, in accordance with the provisions of this
9chapter, the executive committee shall first pay the costs
10of referendums held pursuant to this chapter, the costs of
11collection of such state assessments, and the expenses of its
12agents. At least ten percent of the remaining moneys shall
13be remitted to the association in proportions determined by
14the executive committee, for use in a manner not inconsistent
15with section 181.7. The remaining moneys, with approval of a
16majority of the executive committee, shall be expended as the
17executive committee finds necessary to carry out the provisions
18and purposes of this chapter. However, in no event shall the
19total expenses exceed the total amount transferred from the
20fund for use by the executive committee.
212. b. All moneys deposited in the cattle promotion fund and
22transferred to the executive committee pursuant to this section
23are appropriated and shall be used for the administration
24of this chapter and for the payment of claims based upon
25obligations incurred in the performance of activities and
26functions set forth in this chapter.
273. c. If the state assessment for direct use is suspended
28as provided in section 181.7A or a continuance special
29 referendum to continue the state assessment for clean water
30 fails to pass as provided in section 181.19A, moneys remaining
31in the cattle promotion fund and transferred to the executive
32committee shall continue to be transferred and expended in
33accordance with the provisions of this chapter until exhausted.
342. a. All moneys collected from the state assessment for
35clean water imposed under this chapter shall be paid to and
-18-1collected by the executive committee and may be deposited in a
2qualified financial institution until transferred to the clean
3water fund created in section 466B.51. If the state assessment
4for clean water is terminated as provided in section 181.19A,
5the remaining moneys collected from that state assessment shall
6be immediately transferred to the clean water fund.
7b. Except as otherwise expressly provided in this chapter,
8moneys collected from the state assessment for clean water
9shall not be used for any purpose other than to be transferred
10to the clean water fund created in section 466B.51.
11 Sec. 20. Section 181.19, Code 2022, is amended to read as
12follows:
13181.19 Initial and special referendums.
141. The secretary shall, upon the petition of five hundred
15producers, conduct an initial referendum to determine whether
16a state assessment for direct use is to be established. If
17established, the state assessment for direct use shall be
18 imposed, at a rate established by the executive committee
19not to exceed one dollar per head on all cattle sold for any
20purpose.
212. The secretary shall, upon the petition of five hundred
22producers, conduct a special referendum to do any of the
23following:
24a. Determine whether a state assessment for direct use
25 already imposed shall be increased to a rate, established by
26the executive committee, not to exceed one dollar per head on
27all cattle sold for any purpose.
28b. Determine whether a state assessment for direct use
29 suspended pursuant to section 181.7A is to be in addition to a
30federal assessment. The state assessment for direct use shall
31be imposed at a rate not to exceed one dollar per head on all
32cattle sold for whatever purpose.
333. a. Upon receipt of a petition that otherwise complies
34with the requirements of subsection 1, the secretary shall
35conduct a special referendum to establish a state assessment
-19-1for clean water to be imposed in the same manner as a state
2assessment for direct use.
3b. The rate of the state assessment for clean water shall
4be established by the executive committee not to exceed the
5rate of the state assessment for direct use in effect on the
6date that the special referendum to impose a state assessment
7for clean water passes. However, if a federal assessment is
8imposed, the rate of the state assessment for clean water shall
9be established by the executive committee not to exceed the
10rate of the federal assessment. If a state assessment for
11direct use and a federal assessment are both being imposed,
12the rate of the state assessment for clean water shall be
13established by the executive committee not to exceed the rate
14of the state assessment for direct use plus the rate of the
15federal assessment
164. Upon receipt of a petition that otherwise complies with
17the requirements of subsection 1, the secretary shall include
18as part of the initial referendum a separate special question
19whether to establish a state assessment for clean water as
20described in subsection 3, if the secretary determines the
21inclusion of the special question is cost-effective or the
22petition demands inclusion.
235. a. Upon receipt of a petition that otherwise complies
24with the requirements of subsection 2, the secretary shall
25conduct a special referendum to change the rate of the state
26assessment for clean water to be established by the executive
27committee not to exceed the rate of the state assessment
28for direct use and any federal assessment as described in
29subsection 2.
30b. Upon receipt of a petition that otherwise complies with
31the requirements of subsection 2, the secretary shall include
32as part of the special referendum conducted under subsection
332 a separate special question whether to change the rate of
34the state assessment for clean water to be established by
35the executive committee not to exceed the rate of the state
-20-1assessment for direct use and any federal assessment as
2described in subsection 2, if the secretary determines the
3inclusion of the special question is cost-effective or the
4petition demands inclusion.
56. a. If a an initial referendum or a special referendum
6described in this section passes, the secretary shall establish
7an effective date to commence the state assessment for direct
8use or the change in the rate of the state assessment for
9direct use. However, the state assessment or the change in the
10rate of the state assessment must be commenced within ninety
11days from the date that the secretary determines that the
12referendum has passed.
13b. If a state assessment for clean water is established
14or the rate of the state assessment for clean water changes
15under this section, the secretary shall establish an effective
16date to commence the state assessment or change the rate of the
17state assessment in the same manner as provided in paragraph
18“a”.
194. 7. a. If a special referendum to increase the rate of
20the state assessment for direct use does not pass, the result
21of the special referendum shall not affect the existence or
22length of the state assessment that is in effect on the date
23that the special referendum was conducted.
24b. If a special referendum, or a separate special question
25that is part of a special referendum conducted under this
26section, to change the rate of the state assessment for clean
27water does not pass, the result of the vote shall not affect
28the existence or period that the state assessment is in effect.
298. A state assessment for clean water is terminated on the
30date that the state assessment for direct use is terminated,
31unless a federal assessment is imposed.
32 Sec. 21. Section 181.19A, Code 2022, is amended to read as
33follows:
34181.19A Continuance referendum Special referendums —
35continuance or termination.
-21- 11. The secretary shall, upon the receipt of a petition
2of producers, conduct a continuance special referendum to
3determine whether a state assessment for direct use established
4in section 181.19 should be renewed continued. The secretary
5must receive the petition not less than one hundred fifty and
6not more than two hundred forty days before the four-year
7anniversary of a state assessment’s the effective date of
8the state assessment for direct use. The petition must be
9signed within that period by a number of producers equal to
10or greater than two percent of the number of producers in
11this state reported in the most recent United States census
12of agriculture, requesting a special referendum to determine
13whether to continue the state assessment for direct use.
14The special referendum shall be conducted not earlier than
15thirty days before the four-year anniversary date of the state
16assessment for direct use.
172. a. The secretary shall, upon receipt of a petition
18of producers otherwise complying with the requirements of
19subsection 1, conduct a special referendum to determine whether
20the state assessment for clean water established in section
21181.19 should be continued. The special referendum shall be
22conducted in the same manner as a special referendum conducted
23under subsection 1.
24b. The secretary shall, upon receipt of a petition complying
25with the requirements of subsection 1, include as part of a
26special referendum provided in subsection 1 a separate special
27question whether a state assessment for clean water should be
28continued, if the secretary determines the inclusion of the
29separate special question is cost-effective or the petition
30demands inclusion.
312. 3. a. If the secretary determines that a continuance
32 special referendum has passed under subsection 1, the state
33assessment for direct use shall continue in effect for four
34additional years from the anniversary of its effective date.
35b. If the secretary determines that a special referendum
-22-1or special question to continue the state assessment for clean
2water has passed under subsection 2, the state assessment shall
3be in effect until the anniversary of the effective date of the
4state assessment for direct use described in paragraph “a”.
53. 4. a. If the secretary determines that the a special
6 referendum to continue the state assessment for direct use has
7not passed, the secretary and the executive committee shall
8terminate the state assessment in an orderly manner as soon as
9practicable after the determination.
10b. If the secretary determines that a special referendum to
11continue the state assessment for clean water has not passed,
12the secretary and the executive committee shall terminate the
13state assessment in the same manner as described in paragraph
14“a”.
15c. A state assessment for clean water is terminated on the
16date that the state assessment for direct use is terminated,
17unless a federal assessment is imposed.
185. a. Another If the secretary determines that a special
19referendum to continue the state assessment for direct use has
20not passed, another initial referendum conducted under section
21181.19 to determine whether to establish a state assessment
22for direct use shall not be held conducted for at least one
23hundred eighty days from the date that the state assessment is
24terminated.
25b. If the secretary determines that a special referendum to
26continue the state assessment for clean water has not passed,
27another special referendum to establish the state assessment or
28another initial or special referendum that includes a separate
29special question to establish the state assessment shall not be
30conducted for at least one hundred eighty days from the date
31that the state assessment was terminated.
324. 6. If no a valid petition for a continuance referendum
33provided in this section is not received by the secretary
34within the time period provided in this section, the state
35assessment for direct use or the state assessment for clean
-23-1water shall continue in effect for four additional years from
2the anniversary of its the effective date of the initial
3referendum establishing the state assessment for direct use.
4DIVISION III
5IOWA SHEEP AND WOOL PROMOTION BOARD
6 Sec. 22. Section 182.1, subsection 1, Code 2022, is amended
7to read as follows:
81. “Assessment” means an excise tax on the sale of sheep
9or wool as provided in this chapter which may include an
10assessment for direct use and a state assessment for clean
11water.
12 Sec. 23. Section 182.1, Code 2022, is amended by adding the
13following new subsection:
14 NEW SUBSECTION. 6A. “Qualified financial institution” means
15a bank or credit union as those terms are defined in section
1612C.1.
17 Sec. 24. Section 182.2, Code 2022, is amended to read as
18follows:
19182.2 Petition for initial referendum election.
20Upon receipt of a petition signed by at least fifty producers
21in each district requesting a an initial referendum by election
22 to determine whether to establish the board and to impose an
23assessment for direct use, the secretary shall call a the
24initial referendum to be conducted within sixty days following
25receipt of the petition.
26 Sec. 25. Section 182.3, Code 2022, is amended to read as
27follows:
28182.3 Notice of initial referendum.
291. The secretary shall give notice of the initial referendum
30on the question of whether to establish an Iowa sheep and wool
31promotion board and to impose the an assessment for direct use
32 by publishing the notice for a period of not less than five
33days in at least one newspaper of general circulation in the
34state. The notice shall state the voting places, period of
35time for voting, and other information deemed necessary by the
-24-1secretary.
22. A An initial referendum shall not be commenced until five
3days after the last date of publication.
4 Sec. 26. Section 182.4, Code 2022, is amended to read as
5follows:
6182.4 Establishment of sheep and wool promotion board —
7assessment assessments — termination.
81. Each producer who signs a statement certifying that
9the producer is a bona fide producer is entitled to one vote
10in an initial referendum conducted under this section. At
11the close of the initial referendum, the secretary shall
12count and tabulate the ballots cast. If a majority of voters
13favor establishing an Iowa sheep and wool promotion board and
14imposing establishing an assessment for direct use, an Iowa
15sheep and wool promotion the board and assessment shall be
16established. The assessment for direct use shall be imposed
17commencing not more than sixty days following the initial
18 referendum as determined by the Iowa sheep and wool promotion
19 board, and shall continue until the board and assessment for
20direct use are terminated by a special referendum as provided
21in conducted pursuant to subsection 2 4.
222. a. If the board is in existence, and upon receipt of
23a petition signed by at least twenty-five producers in each
24district requesting a special referendum to determine whether
25to establish a state assessment for clean water, the secretary
26shall call the special referendum to be conducted in the same
27manner as provided in subsection 1.
28b. If a board is not in existence, and upon receipt of a
29petition that complies with the requirements of paragraph “a”,
30the secretary shall include as part of the initial referendum
31a separate special question whether to establish a state
32assessment for clean water, if the secretary determines the
33inclusion of the special question is cost-effective or the
34petition demands inclusion.
35c. If a majority of voters favor establishing the state
-25-1assessment for clean water, the state assessment shall be
2imposed in the same manner and for the same period as the
3assessment for direct use described in subsection 1.
43. a. If a majority of the voters do not favor establishing
5an Iowa sheep and wool promotion a board and imposing the an
6 assessment for direct use, the board and an assessment shall
7not be established, and the assessment shall not be imposed
8and the board shall not be established until another initial
9 referendum is held conducted under this chapter and a majority
10of the voters favor establishing a board and imposing the
11 an assessment. If a an initial referendum fails, another
12referendum shall not be held within conducted for at least
13 one hundred eighty days from the date of the last initial
14referendum.
15b. If a majority of the voters do not favor establishing
16a state assessment for clean water, the state assessment
17shall not be established until another special referendum, or
18another separate special question that is part of an initial
19referendum, is conducted under this chapter and a majority
20of the voters favor establishing the state assessment. If a
21special referendum or special question fails, another special
22referendum or initial referendum which includes a special
23question shall not be conducted within one hundred eighty days
24from the date that the last such special referendum or initial
25referendum was conducted.
262. 4. Upon receipt of a petition signed by at least
27twenty-five producers in each district requesting a special
28 referendum election to determine whether to terminate the
29establishment of the Iowa sheep and wool promotion board and
30to terminate the imposition of the and the assessment for
31direct use, the secretary shall call a special referendum to
32be conducted within sixty days following the receipt of the
33petition. The petitioners shall guarantee the payment of the
34costs of a the special referendum held conducted under this
35subsection. If the majority of the voters of a voting at the
-26-1special referendum do not favor termination, an additional
2special referendum may be held conducted when the secretary
3receives a petition signed by at least twenty-five producers in
4each district. However, the additional referendum shall not be
5held within conducted for at least one hundred eighty days from
6the date of the last such special referendum.
75. a. Upon receipt of a petition that otherwise complies
8with the requirements of subsection 4 requesting a special
9referendum election to determine whether to terminate the
10establishment of the state assessment for clean water, the
11secretary shall call a special referendum to be conducted in
12the same manner as provided in subsection 4.
13b. Upon receipt of a petition that otherwise complies
14with the requirements of subsection 4, the secretary shall
15include as part of the special referendum conducted under that
16subsection a separate special question whether to terminate the
17state assessment for clean water, if the secretary determines
18the inclusion of the special question is cost-effective or the
19petition demands inclusion.
20c. The petitioners shall guarantee the payment of the costs
21of the special referendum conducted under this subsection.
22d. If the majority of the voters of a special referendum
23conducted under this subsection do not favor termination,
24an additional special referendum may be conducted when
25the secretary receives a petition complying with the same
26requirements as described in this subsection. However, the
27additional special referendum shall not be conducted for at
28least one hundred eighty days from the date of the last such
29special referendum.
306. A state assessment for clean water is terminated on the
31date that the assessment for direct use is terminated. The
32secretary shall terminate the state assessment in an orderly
33manner as soon as practical.
34 Sec. 27. Section 182.11, Code 2022, is amended to read as
35follows:
-27- 1182.11 Purposes of board.
21. The purposes of the board shall be to:
31. a. Enter into contracts or agreements with or make
4grants to recognized and qualified agencies, individuals,
5or organizations for the development and carrying out of
6research and education programs directed toward better and more
7efficient production, marketing, and utilization of sheep and
8wool and their products.
92. b. Provide methods and means, including, but not limited
10to, public relations and other promotion techniques for the
11maintenance of present markets.
123. c. Assist in development of new or larger markets, both
13domestic and foreign, for sheep and wool and their products.
142. The board shall cooperate with the division of soil
15conservation and water quality of the department of agriculture
16and land stewardship in doing all of the following:
17a. Transferring moneys collected from the state assessment
18for clean water to the clean water fund created in section
19466B.51.
20b. Being reimbursed for reasonable expenses incurred in
21conducting an initial or special referendum to establish,
22continue, or terminate a state assessment for clean water.
23 Sec. 28. Section 182.13, Code 2022, is amended to read as
24follows:
25182.13 Compensation — meetings.
26Members of the board may receive payment for their actual
27expenses and travel in performing official board functions.
28Payment shall be made from amounts collected from the
29assessment for direct use. No A member of the board shall not
30 be a salaried employee of the board or any organization or
31agency receiving funds moneys collected from the board. The
32board shall meet at least once every three months, and at other
33times it deems necessary.
34 Sec. 29. Section 182.13B, Code 2022, is amended to read as
35follows:
-28- 1182.13B Assessment rate rates.
21. a. If a majority of voters voting at a an initial
3 referendum conducted pursuant to section 182.4 approve the
4establishment of an Iowa sheep and wool promotion the board and
5the imposition of an assessment for direct use, the assessment
6shall be imposed on wool and sheep at the following rates:
7a. (1) For wool, two cents imposed on each pound of wool
8sold by a producer.
9b. (2) For sheep, ten cents imposed on each head of sheep
10sold by a producer.
11b. If a majority of voters voting at a special referendum
12conducted pursuant to section 182.4 approve the establishment
13of a state assessment for clean water, the state assessment
14shall be imposed on wool and sheep at the rates established by
15board resolution not to exceed the rates described in paragraph
16“a”.
172. a. (1) Notwithstanding subsection 1, upon a resolution
18adopted by the board, the secretary shall call a special
19referendum for voters to authorize increasing the assessment
20 rate of the assessment for direct use imposed on sheep as
21provided in this section.
22(2) Notwithstanding subsection 1, upon a resolution adopted
23by the board, the secretary shall call a special referendum for
24voters to authorize increasing the rate of the state assessment
25for clean water imposed on sheep as provided in this section.
26(3) The secretary shall include as part of the special
27referendum to increase the rate of the assessment for direct
28use as described in subparagraph (1), a separate special
29question whether to increase the rate of the state assessment
30for clean water as described in subparagraph (2), if the
31secretary determines the inclusion of the special question is
32cost-effective or the resolution demands inclusion.
33b. The special referendum to increase the rate of the
34assessment for direct use or to increase the rate of the state
35assessment for clean water as described in paragraph “a” shall
-29-1be conducted in the same manner as a an initial referendum
2conducted upon receipt of a petition as provided in this
3chapter section 182.4, unless otherwise provided in the board’s
4resolution. Only producers are eligible to vote in an election
5 the special referendum and each producer is entitled to one
6vote.
73. a. The special referendum to increase the rate of the
8assessment for direct use conducted pursuant to subsection 2
9shall allow a voter to cast a ballot for the following two
10questions:
11a. (1) For the first question, whether to authorize an
12increase in the rate of assessment rate for direct use to
13twenty-five cents imposed on each head of sheep.
14b. (2) For the second question, if the first question is
15approved by a majority of voters, whether to also authorize the
16board to increase that assessment the rate of the assessment
17for direct use by future resolution as provided in this
18section.
19b. The special referendum to increase the rate of the state
20assessment for clean water conducted pursuant to subsection
212 shall allow a voter to cast a ballot for the following two
22questions:
23(1) For the first question, whether to authorize an increase
24in the rate of state assessment for clean water to a rate
25established by board resolution not to exceed the increased
26rate of assessment for direct use described in paragraph “a”,
27subparagraph (1).
28(2) For the second question, if the first question is
29approved by a majority of voters, whether to also authorize the
30board to increase that rate of state assessment for clean water
31by future resolution as provided in this section.
32c. A state assessment for clean water shall not be
33effective if the state assessment exceeds the assessment for
34direct use.
354. a. If a majority of voters approve the first question to
-30-1increase the rate of the assessment for direct use as described
2in subsection 3, paragraph “a”, subparagraph (1), twenty-five
3cents shall be imposed on each head of sheep sold by a producer
4as effectuated by the board pursuant to section 182.12.
5b. If a majority of voters approve the first question to
6increase the rate of the state assessment for clean water as
7described in subsection 3, paragraph “b”, subparagraph (1),
8the increased rate shall be imposed on each head of sheep sold
9by a producer as effectuated by the board pursuant to section
10182.12.
115. a. If a majority of voters approve both the first and
12second questions to increase the rate of the assessment for
13direct use under subsection 3, paragraph “a”, subparagraphs (1)
14and (2), all of the following apply:
15a. (1) Twenty-five The rate of the assessment for direct
16use shall equal twenty-five cents shall be imposed on each
17head of sheep sold by a producer as effectuated by the board
18pursuant to section 182.12.
19b. (2) The board may adopt one or more resolutions to
20further impose an increased rate of assessment rate for direct
21use.
22b. If a majority of voters approve increasing the rate of
23state assessment for clean water as described in subsection 3,
24paragraph “b”, subparagraphs (1) and (2), all of the following
25apply:
26(1) The rate of the state assessment for clean water shall
27equal the increase described in subsection 3, paragraph “b”,
28subparagraph (1), imposed on each head of sheep sold by a
29producer.
30(2) The board may adopt one or more resolutions to further
31impose an increased rate of state assessment for clean water
32so long as the rate does not exceed the rate of the assessment
33for direct use.
34c. The increased assessment rate of the assessment for
35direct use or the increased rate of the state assessment for
-31-1clean water shall be imposed on each head of sheep sold by
2a producer as effectuated by the board pursuant to section
3182.12. The board shall comply with all of the following:
4(1) The board must wait three or more years from the
5effective date of the previous action imposing an increase in
6the rate of the assessment for direct use in order to adopt
7a resolution. For the first increase, the effective date is
8the date of the special referendum to increase the rate of
9the assessment. For any subsequent increase in the rate of
10assessment, the effective date is the date that the board last
11adopted a resolution imposing an increased rate as provided in
12this paragraph “b” subsection.
13(2) The board must wait three or more years from the
14effective date of the previous action imposing an increase in
15the rate of the state assessment for clean water in order to
16adopt a resolution. For the first increase, the effective date
17is the date of the special referendum to increase the rate
18of the state assessment for clean water. For any subsequent
19increase, the effective date is the date that the board last
20adopted a resolution imposing an increased rate as provided in
21this subsection.
22(2) (3) The board shall not adopt a resolution until it
23provides notice to producers of the proposed increase in the
24assessment for direct use or the state assessment for clean
25water and an opportunity for producers to submit written or
26oral comments to the board regarding the proposed increase.
27The board may provide notice by publication in the same manner
28as provided in section 182.3, publication on its internet
29site, mail bearing a United States postal service postmark,
30electronic transmission, or hand-delivery.
31(3) (4) (a) The An increase in the assessment rate of the
32assessment for direct use imposed by a resolution adopted by
33the board must shall equal five cents. However, the assessment
34 rate of the assessment for direct use imposed by a resolution
35of the board shall not equal more than fifty cents.
-32- 1(b) An increase in the rate of the state assessment for
2clean water imposed by resolution adopted by the board shall
3equal five cents. However, the rate of the state assessment
4for clean water imposed by resolution of the board shall not
5equal more than fifty cents.
66. a. If a majority of voters do not authorize increasing
7the rate of the assessment rate for direct use pursuant to a
8special referendum conducted pursuant to under this section,
9the assessment rate for the assessment for direct use shall be
10the same as provided in subsection 1, paragraph “a”.
11b. If a majority of voters do not authorize increasing the
12rate of the assessment for direct use pursuant to a special
13referendum conducted under this section, the rate for the state
14assessment for clean water shall be the same as provided in
15subsection 1, paragraph “b”.
16b. 7. Not more than one special referendum to establish an
17assessment for direct use or to establish a state assessment
18for clean water shall be conducted pursuant to this section.
19 Sec. 30. Section 182.14, Code 2022, is amended to read as
20follows:
21182.14 Assessment Assessments.
221. An assessment for direct use or a state assessment for
23clean water provided in this chapter shall be imposed on the
24producer as follows:
25a. If the producer sells wool or sheep to the first
26purchaser within this state, the following shall apply:
27(1) If the sale occurs at a concentration point, the
28assessment shall be imposed at the time of delivery. The first
29purchaser shall deduct the assessment or state assessment from
30the price paid to the producer at the time of sale.
31(2) If the sale does not occur at a concentration point,
32the producer shall deduct the assessment or state assessment
33 from the amount received from the sale and shall forward the
34amount deducted to the board within thirty days following each
35calendar quarter.
-33- 1b. If the producer sells, ships, or otherwise disposes of
2wool or sheep to any person outside this state, the producer
3shall deduct the assessment or state assessment from the amount
4received from the sale and shall forward the amount deducted
5to the board.
62. The assessment for direct use or the state assessment
7for clean water imposed by this section shall be remitted to
8the board not later than thirty days following each calendar
9quarter during which the assessment amount or state assessment
10amount was deducted.
11 Sec. 31. Section 182.15, subsection 1, paragraph e, Code
122022, is amended to read as follows:
13e. The rate of withholding and the total amount of the
14assessment for direct use and the state assessment for
15clean water withheld. The board may require the invoice to
16separately indicate the amount withheld for the assessment for
17direct use and the state assessment for clean water.
18 Sec. 32. Section 182.16, Code 2022, is amended to read as
19follows:
20182.16 Deposit and disbursement Administration of funds
21 moneys.
221. The board shall deposit amounts moneys collected from the
23assessment for direct use imposed pursuant to section 182.14 in
24an account established pursuant to section 182.12. Expenses
25and disbursements incurred and made pursuant to this chapter
26shall be made by voucher, draft, or check bearing the signature
27of a person designated by majority vote of the board.
282. a. The board may deposit moneys collected from the state
29assessment for clean water in a qualified financial institution
30until transferred to the clean water fund created in section
31466B.51.
32b. If the state assessment for clean water is terminated as
33provided in section 182.4, the remaining moneys collected from
34that state assessment shall be immediately transferred to the
35clean water fund.
-34-1 Sec. 33. Section 182.17, Code 2022, is amended to read as
2follows:
3182.17 Refunds.
41. a. A producer who has paid the assessment for direct use
5 may, by application in writing to the board, secure a refund of
6all or part of the amount paid to the board.
7b. A producer who has paid the state assessment for clean
8water to the board may, by application in writing to the board,
9secure a refund of all or part of the amount paid to the board.
10The board shall transmit any approved application for a refund
11to the division of soil conservation and water quality of the
12department of agriculture and land stewardship for payment.
132. The refund shall be payable only when the application has
14been made to the board within sixty days after the deduction
15has been made by the producer or within sixty days after the
16remittance has been made by the first purchaser.
173. Each application for refund by a producer shall have
18an attached proof indicating that the assessment for direct
19use was paid. If a state assessment for clean water is
20imposed, the attached proof shall also indicate that the state
21assessment has also been paid. The attached proof of the
22assessment paid may be in the form of a duplicate or certified
23copy of the purchase invoice by the purchaser.
244. The application shall allow the applicant to elect
25whether the refund is for the assessment for direct use or the
26state assessment for clean water or both. The board shall not
27approve an application unless the application indicates the
28election.
29 Sec. 34. Section 182.18, Code 2022, is amended to read as
30follows:
31182.18 Use of moneys.
321. Moneys from the assessment for direct use collected
33under this chapter are subject to audit by the auditor of state
34and shall be used by the Iowa sheep and wool promotion board
35first for the payment of collection and refund expenses, second
-35-1for payment of the costs and expenses arising in connection
2with conducting referendums, third for the purposes identified
3in section 182.11, and fourth for the cost of audits for
4the auditor of state. Moneys of the board remaining after
5a special referendum is held at which a majority of the
6voters favor termination of the board and the assessment for
7direct use shall continue to be expended in accordance with
8this chapter until exhausted. The auditor of state may seek
9reimbursement for the cost of the audit.
102. Except as expressly provided in this chapter, moneys
11collected by the board from the state assessment for clean
12water shall not be used for any purpose other than to be
13transferred to the clean water fund created in section 466B.51.
142. 3. The board shall not engage in any political activity,
15and it shall be a condition of any allocation of funds that
16any organization receiving funds shall not expend the funds on
17political activity or on any attempt to influence legislation.
18 Sec. 35. Section 182.22, Code 2022, is amended to read as
19follows:
20182.22 Purchasers outside Iowa.
21The secretary may enter into arrangements with first
22purchasers from outside Iowa for payment of the assessment for
23direct use and the state assessment for clean water.
24DIVISION IV
25IOWA PORK PRODUCERS COUNCIL And
26IOWA PORK PRODUCERS ASSOCIATION
27 Sec. 36. Section 183A.1, subsection 1, Code 2022, is amended
28to read as follows:
291. “Assessment” means an excise tax on the sale of porcine
30animals as provided in this chapter which may include an
31assessment for direct use and a state assessment for clean
32water.
33 Sec. 37. Section 183A.1, Code 2022, is amended by adding the
34following new subsections:
35 NEW SUBSECTION. 1A. “Council” means the Iowa pork producers
-36-1council created pursuant to section 183A.2.
2 NEW SUBSECTION. 4A. “National assessment” means an excise
3tax on the sale of porcine animals imposed pursuant to the Pork
4Promotion Act.
5 Sec. 38. Section 183A.1, subsection 7, Code 2022, is amended
6to read as follows:
77. “Pork Promotion Act” means the federal Pork Promotion,
8Research, and Consumer Information Act of 1985, 7 U.S.C. §4801
9et seq.
10 Sec. 39. Section 183A.5, subsection 1, paragraph i, Code
112022, is amended to read as follows:
12i. Receive, administer, disburse, and account for, in
13addition to the funds moneys received from the assessment for
14direct use and the state assessment for clean water provided in
15this chapter, other funds moneys voluntarily contributed to the
16council for the purpose of promoting the pork industry.
17 Sec. 40. Section 183A.5, Code 2022, is amended by adding the
18following new subsection:
19 NEW SUBSECTION. 4. The council shall cooperate with
20the division of soil conservation and water quality of the
21department of agriculture and land stewardship in doing all of
22the following:
23a. Transferring moneys collected from the state assessment
24imposed as a result of a special referendum conducted pursuant
25to section 183A.9 to the clean water fund created in section
26466B.51.
27b. Being reimbursed for reasonable expenses incurred in
28conducting an initial or special referendum to establish,
29continue, or terminate a state assessment for clean water.
30 Sec. 41. Section 183A.6, Code 2022, is amended to read as
31follows:
32183A.6 Assessment Assessments.
331. The council shall make impose an assessment for direct
34use of not less than point zero zero two nor more than point
35zero zero three of the gross sale price of all porcine animals.
-37-1The assessment for direct use shall be point zero zero two five
2of the gross sale price of porcine animals until consent to
3an assessment has been given through the initial referendum
4referred to in this chapter. After approval of the initial
5referendum, the rate of assessment for direct use shall be
6determined established by the council.
72. a. If an assessment for direct use is imposed under
8subsection 1, the council shall impose a state assessment for
9clean water if approved at a special referendum conducted
10pursuant to section 183A.9.
11b. If a national assessment is imposed under section
12183A.9A, the Iowa pork producers association shall impose a
13state assessment for clean water if approved at a special
14referendum conducted pursuant to section 183A.9.
153. a. The assessment for direct use and the state
16assessment for clean water shall be made at the time of
17delivery of the porcine animals for sale, and shall be deducted
18by the first purchaser from the price paid to the seller. The
19first purchaser, at the time of sale, shall make and deliver
20to the seller an invoice for each purchase showing the names
21and addresses of the seller and the first purchaser, the number
22and kind of porcine animals sold, the date of sale, and the
23assessment for direct use, and any state assessment for clean
24water made on the sale. The council may require the invoice to
25separately indicate the amount withheld for the assessment for
26direct use and the state assessment for clean water.
272. b. Assessments An assessment for direct use and the
28state assessment for clean water shall be paid to the Iowa pork
29producers council or its designated agent by first purchasers
30at a time prescribed by the council, but not later than the
31last day of the month following the month in which the animals
32were purchased.
334. If a national assessment is imposed pursuant to section
34183A.9A, and a state assessment for clean water is imposed
35under section 183A.9, the Iowa pork producers association shall
-38-1impose and collect the state assessment for clean water in
2the same manner as the assessment for direct use set forth in
3subsection 3. However, the Iowa pork producers association may
4impose and collect the state assessment based on procedures for
5the national assessment as set forth in the Pork Promotion Act.
6The invoice may correspond to any invoice required by the Pork
7Promotion Act.
8 Sec. 42. Section 183A.7, Code 2022, is amended to read as
9follows:
10183A.7 Administration of moneys — appropriation.
111. a. Assessments An assessment for direct use imposed
12under this chapter pursuant to section 183A.6 and paid to and
13collected by the Iowa pork producers council shall be deposited
14in the pork promotion fund which is established in the office
15of the treasurer of state. The department of administrative
16services shall transfer moneys from the pork promotion fund
17to the council for deposit into an account established by the
18council in a qualified financial institution. The department
19shall transfer the moneys as provided in a resolution adopted
20by the council. However, the department is only required to
21transfer moneys once during each day and only during hours when
22the offices of the state are open.
232. b. All moneys deposited in the pork promotion fund and
24transferred to the council as provided in this section are
25appropriated and shall be used for the administration of this
26chapter and for the payment of claims based upon obligations
27incurred in the performance of activities and functions set
28forth in this chapter.
293. c. From the moneys collected, deposited, and transferred
30to the council as provided in this chapter, the council shall
31first pay the costs of referendums held pursuant to this
32chapter. Of the moneys remaining, at least twenty-five percent
33shall be remitted to the national pork producers council and
34at least fifteen percent shall be remitted to the Iowa pork
35producers association, in the proportion the committee Iowa
-39-1pork producers council determines, for use by recipients in
2a manner not inconsistent with market development as defined
3in section 183A.1. Moneys remaining shall be spent as found
4necessary by the Iowa pork producers council to further carry
5out the provisions and purposes of this chapter.
64. d. However, in In no event shall the total expenses
7exceed the total amount of moneys transferred from the pork
8promotion fund for use by the council.
92. a. Moneys collected from a state assessment for clean
10water by the council may be deposited in a qualified financial
11institution and shall be transferred to the clean water fund
12created in section 466B.51.
13b. If a national assessment is imposed pursuant to section
14183A.9A, moneys from the state assessment for clean water
15collected by the Iowa pork producers association shall be
16transferred to the clean water fund created in section 466B.51.
17c. The Iowa pork producers association shall maintain
18separate accounts for moneys collected from the national
19assessment and the state assessment for clean water.
20d. The Iowa pork producers association shall adopt rules
21as a state agency pursuant to chapter 17A as necessary to
22administer this subsection and other sections in this chapter
23which directly or indirectly relate to this subsection.
24 Sec. 43. Section 183A.8, Code 2022, is amended to read as
25follows:
26183A.8 Refund of assessment assessments.
271. A producer from whom the an assessment for direct use or
28a state assessment for clean water has been deducted, upon is
29entitled to receive a refund upon filing a written application
30filed with the council within thirty days after its collection,
31shall have that amount refunded by the council.
322. a. Application If an assessment for direct use or state
33assessment for clean water are imposed, application forms shall
34be given by the council to each first purchaser when requested
35and the first purchaser shall make the applications available
-40-1to any producer.
2b. Each application for a refund by a producer shall have
3attached a proof of assessment for direct use deducted. If
4the assessment for direct use and state assessment for clean
5water are imposed, the attached proof shall indicate the amount
6of the assessment and the amount of the state assessment
7deducted. The proof of the assessment for direct use and any
8state assessment for clean water deducted shall be in the form
9of the original or a copy of the purchase invoice by the first
10purchaser. The application shall allow the applicant to elect
11whether the refund is for the assessment for direct use or the
12state assessment for clean water or both. The council shall
13not approve an application unless the application indicates the
14election.
153. The council shall have no not more than thirty days from
16the date the application for a refund is received to remit do
17all of the following:
18a. Remitthe amount of the refund of an assessment for
19direct use to the producer.
20b. Submit an approved application for the refund of a state
21assessment for clean water to the division of soil conservation
22and water quality of the department of agriculture and land
23stewardship which shall remit the amount of the refund to the
24producer.
254. If a national assessment is established pursuant to
26section 183A.9A and a state assessment for clean water is
27established pursuant to section 183A.9, the producer shall file
28a written application with the Iowa pork producers association
29in lieu of the council in the same manner as provided in
30subsection 1 and the Iowa pork producers association shall
31make applications available to first purchasers as provided in
32subsection 2. However, the Iowa pork producers association
33may provide for filing applications for a refund based on any
34applicable procedures set forth in the Pork Promotion Act. In
35any case, the Iowa pork producers association must transfer
-41-1approved applications for refunds to the division of soil
2conservation and water quality of the department of agriculture
3and land stewardship for payment to producers in the same
4manner as described in subsection 3.
5 Sec. 44. Section 183A.9, Code 2022, is amended to read as
6follows:
7183A.9 Referendum Initial and special referendums —
8assessments.
91. At a time designated by the council within eighteen
10months after the termination of the collection of assessments
11 the national assessment imposed under the Pork Promotion Act,
12the secretary shall conduct an initial referendum under to
13establish an Iowa pork producers council and an assessment
14for direct use. The referendum shall be conducted according
15to administrative procedures prescribed rules adopted by the
16department of agriculture and land stewardship.
172. If an assessment for direct use is established and upon
18receipt of a request of ten percent or more of the number
19of producers eligible to vote, the secretary shall conduct a
20special referendum to determine whether producers favor the
21establishment of a state assessment for clean water. The
22special referendum shall be conducted in the same manner
23as an initial referendum conducted pursuant to subsection
241. The rate of the state assessment for clean water shall
25be established by the council not to exceed the rate of the
26assessment for direct use established pursuant to an initial
27referendum described in section 183A.6.
283. Upon receipt of a petition that otherwise complies with
29the requirements of subsection 2, the secretary may in lieu of
30conducting a special referendum include as part of the initial
31referendum a separate special question whether to establish a
32state assessment for clean water, if the secretary determines
33it to be cost-effective or the petition demands it.
342. 4. Upon signing a statement certifying to the secretary
35that the person is a bona fide producer as defined in this
-42-1chapter, each producer is entitled to one vote in each initial
2or special referendum. The secretary shall determine the
3qualification of producers under this section.
43. 5. The secretary shall count and tabulate the ballots
5filed during the initial or special referendum within thirty
6days of the close of the referendum. If from the tabulation
7the secretary determines that a majority of the total number
8of producers voting in the initial referendum favors the
9establishment of the assessment for direct use, the assessment
10provided for in the referendum shall be levied imposed. If
11from the tabulation the secretary determines that a majority of
12the total number of producers voting in the initial or special
13referendum favors the establishment of the state assessment
14for clean water, the state assessment shall be imposed. The
15ballots cast pursuant to this section constitute complete and
16conclusive evidence for use in determinations made by the
17secretary under this chapter.
184. 6. a. The secretary shall hold subsequent referendums
19 conduct a special referendum on request of receipt of a
20petition signed by ten percent or more of the number of
21producers eligible to vote, to determine whether the producers
22favor the termination or any of the following:
23(1) Thesuspension of the assessment for direct use.
24(2) The termination of the assessment for direct use and the
25state assessment for clean water, if established.
26b. The secretary shall suspend or terminate collection
27of the assessment for direct use within six months after the
28secretary determines that suspension or termination of the
29assessment for direct use is favored by a majority of the
30producers voting in the special referendum, and. The secretary
31 shall suspend or terminate the assessment for direct use in an
32orderly manner as soon as practicable after the determination.
337. a. The secretary shall conduct a special referendum on
34receipt of a petition of producers otherwise complying with the
35requirements in subsection 6 to conduct a special referendum to
-43-1terminate the state assessment for clean water.
2b. Upon receipt of a petition that otherwise complies
3with the requirements of subsection 6, the secretary shall
4include as part of the special referendum conducted under that
5subsection a separate special question whether to terminate
6the state assessment for clean water, if the secretary
7determines the inclusion of the separate special question is
8cost-effective or the petition demands inclusion.
98. The secretary shall terminate the state assessment for
10clean water in the same manner as provided in subsection 6,
11upon determining that the council is abolished, the assessment
12for direct use is not being collected, and the national
13assessment is not being collected.
14 Sec. 45. Section 183A.9A, Code 2022, is amended to read as
15follows:
16183A.9A Suspension during national order.
171. The terms of all voting members serving on the council on
18January 31, 1986 terminate at the time provided in subsection
192.
202. 1. On the date of the commencement of the collection
21of assessments a national assessment under the Pork Promotion
22Act, the collection of the assessments assessment for direct
23use under section 183A.6 shall be suspended. The council shall
24continue to operate after suspension until all refunds are paid
25and all funds moneys remaining in the pork promotion fund, less
26a reserve for future refunds, are disbursed for the purposes
27enumerated in this chapter. Notwithstanding section 183A.7,
28the council need not retain a reserve for future referendums.
29Upon completion of these acts, the existence of the Iowa pork
30producers council is suspended. The secretary of agriculture
31 shall certify the suspension of the council as of a date
32certain to the Iowa pork producers council and the Iowa pork
33producers association. When the existence of the council is
34suspended, the terms of office of council members terminate.
352. a. The state recognizes the Iowa pork producers
-44-1association as a state association under the Pork Promotion
2Act. For purposes of this chapter, “association” shall include
3a successor state association or other state association that
4administers the national assessment in Iowa.
5b. If a state assessment for clean water is established
6or continued pursuant to sections 183A.9 and 183A.9A, the
7Iowa pork producers association shall administer the state
8assessment for the period that the Pork Promotion Act is in
9effect, unless the state assessment is terminated under section
10183A.9. On the date of the commencement of the collection of
11the national assessment under the Pork Promotion Act, the Iowa
12pork producers association shall assume collection of the state
13assessment for clean water under section 183A.9.
143. a. If the rate of the national assessment has changed,
15and upon receipt of a petition that otherwise complies
16with requirements for submitting a petition to suspend or
17terminate an assessment for direct use under section 183A.9,
18the secretary shall conduct a special referendum to determine
19whether to change the rate of the state assessment for
20clean water to a rate established by the Iowa pork producers
21association not to exceed the rate of the national assessment.
22b. Upon receipt of a petition that otherwise complies with
23requirements for submitting a petition to suspend or terminate
24an assessment for direct use under section 183A.9, the
25secretary shall include as part of a referendum to change the
26rate of the national assessment, a separate special question
27whether to change the rate of the state assessment for clean
28water not to exceed the change in the national assessment, if
29the secretary determines the inclusion of the special question
30complies with federal law and either it is cost-effective or
31the petition demands inclusion.
32c. If the national assessment is changed, and the secretary
33determines that a change in the state assessment for clean
34water is favored by a majority of the producers voting in a
35special referendum or separate special question as part of
-45-1a referendum to change the rate of the national assessment,
2the rate of the state assessment shall be changed on a date
3determined by the secretary after consultation with the Iowa
4pork producers association but not later than six months
5after the date that the special referendum or referendum was
6conducted.
73. 4. On the date of the termination of the collection of
8assessments the national assessment under the Pork Promotion
9Act, the period of suspension of the assessments assessment
10for direct use under subsection 2 3 terminates. The secretary
11shall collect moneys from the assessments assessment for direct
12use under section 183A.6 and the state assessment for clean
13water under section 183A.9 until this duty can be resumed by
14the reactivated council. The secretary shall deposit moneys
15collected from the assessment for direct use in the pork
16promotion fund. The secretary shall transfer moneys collected
17from the state assessment for clean water to the clean water
18fund created in section 466B.51. The secretary shall cooperate
19with the Iowa pork producers association in performing these
20duties.
214. 5. On the date of the termination of the collection of
22assessments the national assessment under the Pork Promotion
23Act, the period of suspension of the council under subsection 2
24 1 terminates. Within sixty days from this date, the secretary
25shall appoint voting members to the council. For purposes of
26section 183A.3, a voting member so appointed is deemed not to
27have served a previous consecutive term. The terms of office
28of voting members of the initial reactivated council shall be
29determined by lot, but members from the same district shall
30not serve the same terms. As nearly as possible one-third of
31the voting members shall serve for one year, one-third of the
32voting members shall serve for two years, and one-third of the
33voting members shall serve for three years. Subsequent voting
34members shall be appointed pursuant to section 183A.2.
355. 6. The secretary shall call the first meeting of the
-46-1reactivated council. Upon reactivation, the council shall
2reimburse the secretary for expenses incurred in carrying out
3the duties provided in this section.
47. The Iowa pork producers association shall cooperate with
5the division of soil conservation and water quality of the
6department of agriculture and land stewardship in doing all of
7the following:
8a. Transferring moneys from the state assessment for clean
9water to the clean water fund created in section 466B.51.
10b. Being reimbursed for reasonable expenses incurred in
11conducting an initial or special referendum to establish,
12continue, or terminate a state assessment for clean water.
13DIVISION V
14IOWA EGG COUNCIL
15 Sec. 46. Section 184.1, subsection 1, Code 2022, is amended
16to read as follows:
171. “Assessment” means an excise tax on the sale of eggs as
18provided in this chapter which may include an assessment for
19direct use and a state assessment for clean water.
20 Sec. 47. Section 184.1, subsection 2, Code 2022, is amended
21to read as follows:
222. “Council” means the Iowa egg council established pursuant
23to section 184.2.
24 Sec. 48. Section 184.2, Code 2022, is amended to read as
25follows:
26184.2 Establishment of Iowa egg council and assessment
27 assessments.
281. The secretary shall call and the department shall conduct
29a an initial referendum upon the department’s receipt of a
30petition for assessment for direct use which is signed by at
31least twenty producers requesting a an initial referendum to
32determine whether to establish an Iowa egg council and to
33impose establish an assessment for direct use to be imposed as
34provided in section 184.3.
352. a. If the council has been established, the secretary
-47-1shall call and the department shall conduct a special
2referendum upon the department’s receipt of a petition that
3otherwise complies with subsection 1 calling for a state
4assessment for clean water to be imposed as provided in section
5184.3.
6b. Upon receipt of a petition that otherwise complies with
7subsection 1, the secretary may in lieu of conducting a special
8referendum include as part of the initial referendum a separate
9special question whether to establish a state assessment for
10clean water to be imposed as provided in section 184.3, if the
11secretary determines the inclusion of the special question is
12cost-effective or the petition demands inclusion.
133. The initial referendum or a special referendum described
14in this section shall be conducted within sixty days following
15receipt of the petition. The petitioners shall guarantee
16payment of the cost of the initial referendum or special
17referendum by providing evidence of financial security as
18required by the department.
192. 4. The department shall give notice of the initial
20 referendum on the question whether to establish a council and
21to impose an assessment or special referendum described in this
22section by publishing the notice for a period of not less than
23five days in at least one newspaper of general circulation in
24the state. The notice shall state the voting places, period
25of time for voting, and other information deemed necessary by
26the department. A An initial referendum or special referendum
27 shall not be commenced until five days after the last date of
28publication.
293. a. 5. Each producer who signs a statement certifying
30that the producer is a bona fide producer shall be an eligible
31voter under this section. An eligible voter is entitled to
32cast one vote in each initial referendum or special referendum
33 conducted under this section.
34b. 6. At the close of the initial referendum or special
35referendum, the secretary shall count and tabulate the ballots
-48-1cast.
2(1) 7. a. If a majority of eligible voters approve
3establishing an Iowa egg the council and imposing an assessment
4for direct use, a the council and the assessment shall be
5established, and an the assessment shall be imposed, commencing
6not more than sixty days following the initial referendum as
7determined by the council and shall continue until eligible
8voters voting in a special referendum held conducted pursuant
9to section 184.5 vote to abolish the council and terminate the
10imposition of the assessment for direct use.
11b. If a majority of eligible voters approve establishing
12a state assessment for clean water, pursuant to a special
13referendum, the state assessment shall be imposed commencing
14not more than sixty days following the special referendum as
15determined by the council. If a majority of eligible voters
16approve establishing a state assessment for clean water, as
17part of an initial referendum the state assessment shall be
18imposed in the same manner described in paragraph “a”. The
19state assessment for clean water shall continue until eligible
20voters voting in a special referendum conducted pursuant to
21section 184.5 vote to do any of the following:
22(1) Abolish the council and terminate the assessment for
23direct use.
24(2) Terminate the state assessment for clean water.
25(2) 8. a. If a majority of the voters do not approve
26establishing the council and imposing the assessment for direct
27use, the council and the assessment shall not be established,
28 and an the assessment shall not be imposed, until another
29initial referendum is held conducted under this chapter and a
30majority of the eligible voters approve establishing a council
31and imposing the an assessment for direct use. If a an initial
32 referendum should fail, another initial referendum to decide
33whether to establish a council and an assessment shall not be
34held conducted within at least one hundred eighty days from the
35date that the last initial referendum was conducted.
-49- 1b. If a majority of the voters do not approve establishing
2a state assessment for clean water, the state assessment
3shall not be established until the question is approved at
4a special referendum or as part of an initial referendum
5conducted pursuant to this section. If a special referendum,
6or an initial referendum which includes the question whether
7to establish a state assessment for clean water, should fail,
8the special referendum or an initial referendum which includes
9the special question shall not be conducted for at least one
10hundred eighty days from the date that the last such special
11referendum or initial referendum was conducted.
124. 9. Immediately after passage of the question to
13establish a council and assessment for direct use at the an
14initial referendum, the secretary shall appoint seven members
15to the council in accordance with section 184.6 based on
16nominations made by the Iowa poultry association. The Iowa
17poultry association shall nominate and the secretary shall
18appoint two members representing large producers, two members
19representing medium producers, and three members representing
20small producers. The department, in consultation with the Iowa
21poultry association, shall determine initial classifications
22for small, medium, and large producers. The secretary shall
23complete the appointments within thirty days following passage
24of the question at the initial referendum.
25 Sec. 49. Section 184.3, Code 2022, is amended to read as
26follows:
27184.3 Assessment Assessments and state assessments.
281. a. Except as provided in paragraph “b” subsection 4,
29an assessment for direct use of two and one-half cents is
30imposed on each thirty dozen eggs produced in this state. The
31assessment for direct use shall be imposed on a producer at the
32time of delivery to a purchaser who shall deduct the assessment
33for direct use from the price paid to a producer at the time of
34sale.
352. A state assessment for clean water is imposed and
-50-1deducted in the same manner as the assessment for direct use
2provided in subsection 1. The rate of the state assessment for
3clean water shall be established by the council at a rate not
4to exceed the rate of assessment for direct use as provided in
5subsection 1.
63. The assessment for direct use and the state assessment
7for clean water shall not be refundable. The assessment is for
8direct use and state assessment for clean water are due to be
9paid to the council within thirty days following each calendar
10quarter, as provided by the council.
11b. 4. a. Upon request of the council, the secretary shall
12call a special referendum for producers to vote on whether to
13authorize an increase in the rate of assessment for direct use
14 to an amount that is more than two and one-half cents imposed
15on each thirty dozen eggs produced in this state.
16b. Upon request of the council, the secretary shall call
17a special referendum for producers to vote on whether to
18authorize an increase in the state assessment for clean water
19as established by the council not to exceed the rate of the
20assessment for direct use described in paragraph “a”.
21c. The secretary shall include as part of a special
22referendum to increase the rate of the assessment for direct
23use as described in paragraph “a”, a separate special question
24whether to increase the rate of the state assessment for clean
25water as described in paragraph “b”, if the secretary determines
26the inclusion of the special question is cost-effective or the
27request demands inclusion.
285. a. Notice of a special referendum described in
29subsection 4 shall be given and the special referendum shall be
30conducted in the manner provided in section 184.5.
31b. (1) If a majority of the producers voting approves the
32 an increase in the rate of the assessment for direct use, the
33council may increase the assessment for to the amount rate
34 approved. However, the The rate of the assessment for direct
35use shall not exceed fifteen cents imposed on each thirty dozen
-51-1eggs produced in this state.
2(2) If a majority of the producers voting approves an
3increase in the state assessment for clean water, the council
4shall increase the rate of the state assessment to a rate not
5to exceed the rate approved for the assessment for direct use
6as described in subparagraph (1).
72. 6. a. If the producer sells eggs to a purchaser outside
8the state of Iowa, the producer shall deduct the assessment for
9direct use from the amount received from the sale and shall
10forward the amount deducted to the council within thirty days
11following each calendar quarter.
12b. If the producer sells eggs to a purchaser outside the
13state of Iowa, the producer shall deduct the state assessment
14for clean water in the same manner as described in paragraph
15“a”.
167. If the producer and processor are the same person, then
17that person shall pay the assessment for direct use or the
18state assessment for clean water to the council within thirty
19days following each calendar quarter.
203. 8. The council may charge interest on any amount of the
21 an assessment for direct use or a state assessment for clean
22water that is delinquent. The rate of interest shall not be
23more than the current rate published in the Iowa administrative
24bulletin by the department of revenue pursuant to section
25421.7. The interest amount shall be computed from the date
26the assessment for direct use or a state assessment for clean
27water is delinquent, unless the council designates a later
28date. The interest amount shall accrue for each month in which
29there is delinquency calculated as provided in section 421.7,
30and counting each fraction of a month as an entire month. The
31interest amount due shall become a part of the assessment for
32direct use or a state assessment for clean water due.
33 Sec. 50. Section 184.4, subsection 1, paragraph e, Code
342022, is amended to read as follows:
35e. The rate of withholding and the total amount of
-52-1assessment for direct use and the state assessment for clean
2water withheld. The council may require the invoice to
3separately indicate the amount withheld for the assessment for
4direct use and for the state assessment for clean water.
5 Sec. 51. Section 184.5, Code 2022, is amended to read as
6follows:
7184.5 Referendums Special referendum conducted to abolish
8the council and terminate imposition of the assessment or state
9assessment.
101. a. A special referendum may be called to abolish the
11council and terminate the imposition of the assessment for
12direct use established pursuant to section 184.3 and any
13state assessment for clean water established pursuant to that
14section.
15b. A special referendum may be called to terminate the state
16assessment for clean water established pursuant to section
17184.3.
18c. The secretary shall include as part of a special
19referendum to abolish the council and terminate the assessment
20for direct use described in paragraph “a”, a separate special
21question whether to terminate the state assessment for clean
22water as described in paragraph “b”, if the secretary determines
23the inclusion of the special question is cost-effective or the
24request demands inclusion.
252. The secretary shall call, and the department shall
26conduct, the a special referendum described in subsection
271 upon the department’s receipt of a petition requesting
28the special referendum. The petition must be signed by at
29least twenty eligible voters or fifty percent of all eligible
30voters, whichever is greater. In order to be an eligible voter
31under this section, a producer must have paid an assessment
32for direct use established under section 184.3, and a state
33assessment for clean water if established under that section,
34 in the year of the special referendum. The special referendum
35shall be conducted within sixty days following receipt of the
-53-1petition. The petitioners shall guarantee payment of the cost
2of the special referendum by providing evidence of financial
3security as required by the department.
42. 3. The following procedures shall apply to a special
5 referendum conducted pursuant to this section:
6a. The department shall publish a notice of the special
7 referendum for a period of not less than five days in at least
8one newspaper of general circulation in the state. The notice
9shall state the voting places, period of time for voting,
10and other information deemed necessary by the department. A
11special referendum shall not be commenced until five days after
12the last date of publication.
13b. Upon signing a statement certifying to the secretary that
14the producer is an eligible voter, a producer is entitled to
15one vote in each special referendum conducted pursuant to this
16section. The department may conduct the special referendum
17by mail, electronic means, or a general meeting of eligible
18voters. The department shall conduct the special referendum
19and count and tabulate the ballots filed during the special
20 referendum within thirty days following the close of the
21special referendum.
22(1) c. If a majority of the total number of eligible
23voters who vote in the special referendum approve approves
24 the continuation of the council and the imposition of the
25 assessment for direct use, the council and the imposition of
26the assessment shall continue as provided in this chapter.
27d. If a majority of eligible voters who vote in the special
28referendum approves the continuation of the state assessment
29for clean water, the imposition of the state assessment shall
30continue for the same period as the assessment for direct use.
31(2) e. If a majority of the total number of eligible
32voters who vote in the special referendum held pursuant to
33this section do does not approve continuing the council and
34the imposition of the assessment for direct use, the secretary
35shall terminate the collection of the assessment for direct use
-54-1established pursuant to section 184.3 and the state assessment
2for clean water if established pursuant to that section, on
3the first day of the year for which the referendum was to
4continue. The secretary shall terminate the activities of the
5council in an orderly manner as soon as practicable after the
6determination is made. An additional initial referendum may be
7held as provided in conducted under section 184.2. However,
8the subsequent additional referendum shall not be held within
9 conducted for at least one hundred eighty days after the date
10that the last such special referendum was conducted.
11f. If a majority of the total number of eligible voters
12who vote in the special referendum does not approve continuing
13the state assessment for clean water, the secretary shall
14terminate the state assessment in an orderly manner as soon as
15practicable after the determination is made. An additional
16special referendum or an additional initial referendum that
17includes a separate special question to establish the state
18assessment for clean water may be conducted under section
19184.2. However, the subsequent special referendum or
20initial referendum shall not be conducted for at least one
21hundred eighty days after the date that the last such special
22referendum or initial referendum was conducted.
23 Sec. 52. Section 184.10, subsection 4, Code 2022, is amended
24to read as follows:
254. Enter into arrangements for the collection of the
26assessment for direct use and any state assessment for clean
27water.
28 Sec. 53. Section 184.10, Code 2022, is amended by adding the
29following new subsection:
30 NEW SUBSECTION. 8. Cooperate with the division of soil
31conservation and water quality of the department of agriculture
32and land stewardship in doing all of the following:
33a. Transferring moneys from the state assessment for clean
34water to the clean water fund created in section 466B.51.
35b. Being reimbursed for reasonable expenses incurred in
-55-1conducting an initial or special referendum to establish,
2continue, or terminate a state assessment for clean water.
3 Sec. 54. Section 184.13, Code 2022, is amended to read as
4follows:
5184.13 Administration of moneys.
61. Subject to the provisions of section 184.3, the
7assessment imposed by this chapter for direct use established
8pursuant to section 184.3, and the state assessment for
9clean water if established pursuant to that section, shall
10be remitted by the purchaser to the council not later than
11thirty days following each calendar quarter during which the
12assessment was collected.
132. Amounts Moneys collected from the assessment for direct
14use shall be deposited in the office of the treasurer of
15state in a separate fund to be known as the Iowa egg fund.
16The department of administrative services shall transfer
17moneys from the fund to the council for deposit into an
18account established by the council in a qualified financial
19institution. The department shall transfer the moneys as
20provided in a resolution adopted by the council. However, the
21department is only required to transfer moneys once during each
22day and only during hours when the offices of the state are
23open.
243. Moneys collected from a state assessment for clean
25water by the council may be deposited in a qualified financial
26institution and shall be transferred to the clean water fund
27created in section 466B.51.
28 Sec. 55. Section 184.14, Code 2022, is amended to read as
29follows:
30184.14 Use of moneys — appropriation — audit.
311. All moneys deposited in the Iowa egg fund and transferred
32to the council as provided in section 184.13 are appropriated
33and shall be used for the administration of this chapter and
34for the payment of claims based upon obligations incurred in
35the performance of activities and functions set forth in this
-56-1chapter.
22. a. Moneys collected, deposited in the fund, and
3transferred to the council as provided in this chapter are
4subject to audit by the auditor of state. The auditor of state
5may seek reimbursement for the cost of the audit. The moneys
6transferred to the council shall be used by the council first
7for the payment of collection expenses, second for payment of
8the costs and expenses arising in connection with conducting
9referendums, third to perform the functions and carry out the
10duties of the council as provided in this chapter, and fourth
11for the cost of audits by the auditor of state.
12b. Moneys The moneys remaining after the council is
13abolished and the imposition of an the assessment for direct
14use imposed pursuant to section 184.3 is terminated pursuant to
15a special referendum conducted pursuant to section 184.5 shall
16continue to be expended in accordance with this chapter until
17exhausted.
183. If the council is abolished and the assessment for direct
19use is terminated pursuant to a special referendum conducted
20under section 184.5, remaining moneys collected from the state
21assessment for clean water shall be transferred to the clean
22water fund created in section 466B.51. If the state assessment
23for clean water is terminated pursuant to a special referendum
24conducted under that section, remaining moneys collected from
25the state assessment shall be transferred to the clean water
26fund created in section 466B.51.
274. Except as expressly provided in this chapter, moneys
28collected from a state assessment for clean water shall not be
29used for any purpose other than to be transferred to the clean
30water fund created in section 466B.51.
31 Sec. 56. Section 184.18, Code 2022, is amended to read as
32follows:
33184.18 Purchasers outside Iowa.
34The secretary may enter into arrangements with purchasers
35from outside Iowa for payment of the assessment for direct use
-57-1and the state assessment for clean water.
2DIVISION VI
3IOWA TURKEY MARKETING COUNCIL
4 Sec. 57. Section 184A.1, Code 2022, is amended by adding the
5following new subsections:
6 NEW SUBSECTION. 1A. “Assessment” means an excise tax
7imposed on the sale of turkeys which may include an assessment
8for direct use and a state assessment for clean water.
9 NEW SUBSECTION. 2A. “Department” means the department of
10agriculture and land stewardship.
11 Sec. 58. Section 184A.1A, Code 2022, is amended to read as
12follows:
13184A.1A Referendum conducted to establish an Iowa turkey
14marketing council and impose an assessment Referendums and
15assessments — council established.
161. a. The department shall call and conduct a an initial
17 referendum upon the department’s receipt of a petition which
18is signed by at least twenty eligible voters requesting a
19 an initial referendum to determine whether to establish an
20Iowa turkey marketing council as provided in section 184A.1B
21and impose establish an assessment for direct use imposed as
22provided in section 184A.2.
23b. If a council is established, and upon receipt of a
24petition that otherwise complies with the requirements of
25subsection 1, the department shall call and conduct a special
26referendum to establish a state assessment for clean water as
27provided in section 184A.2.
28c. Upon receipt of a petition that otherwise complies with
29the requirements of subsection 1, the secretary shall include
30as part of the initial referendum a separate special question
31whether to establish a state assessment for clean water
32described in paragraph “b”, if the secretary determines the
33inclusion of the separate special question is cost-effective or
34the petition demands inclusion.
352. a. In order to be an eligible voter under this section,
-58-1a petitioner must be a qualified producer. The initial or
2special referendum shall be conducted by election within sixty
3days following receipt of the petition. The petitioners shall
4guarantee payment of the cost of the referendum by providing
5evidence of financial security as required by the department.
62. b. The department shall give provide notice of the
7 an initial referendum on the question whether to establish
8a council and to impose an assessment or special referendum
9 by publishing the notice for a period of not less than five
10days in at least one newspaper of general circulation in
11the state, and for a similar period in other newspapers as
12prescribed by the department. The notice shall state the
13voting places, period of time for voting, the manner of voting,
14the amount of the assessment for direct use or the amount of
15the state assessment for clean water, and other information
16deemed necessary by the department. A referendum or special
17referendum shall not be commenced until five days after the
18last date of publication.
193. a. c. Each eligible voter who signs a statement
20certifying that the eligible voter is a qualified producer
21shall be an eligible voter under this section. An eligible
22voter is entitled to cast one vote in each initial referendum
23or special referendum conducted under this section. The
24department may conduct the initial referendum or special
25referendum by mail, electronic means, or a general meeting of
26eligible voters.
27b. d. At the close of the initial referendum or special
28referendum, the department shall count and tabulate the ballots
29cast.
30(1) 3. a. If a majority of eligible voters who vote in
31the an initial referendum approve establishing the council and
32imposing an assessment for direct use under section 184A.2, a
33council and the assessment shall be established, and an the
34 assessment shall be imposed commencing not more than sixty days
35following the initial referendum as determined by the council.
-59-1The council and assessment for direct use shall continue for
2five years as provided in section 184A.12.
3b. If a majority of eligible voters who vote in a special
4referendum approve establishing a state assessment for clean
5water, the state assessment shall be imposed commencing not
6more than sixty days following the special referendum as
7determined by the council.
8(2) c. If a majority of eligible voters who vote in the an
9initial referendum do not approve establishing the council and
10imposing the an assessment for direct use, the council shall
11not be established and an assessment shall not be established
12and imposed until another initial referendum is held conducted
13 under this section and a majority of the eligible voters voting
14approve establishing a council and imposing the an assessment
15for direct use. If a an initial referendum should fail,
16another initial referendum shall not be held within conducted
17for at least one hundred eighty days from the date of the last
18such initial referendum.
19d. If a majority of the voters do not approve establishing
20a state assessment for clean water, the state assessment shall
21not be established and imposed until the question is approved
22at a special referendum or as part of an initial referendum
23conducted pursuant to this section. If a special referendum
24or an initial referendum which includes the question whether
25to establish a state assessment should fail, the special
26referendum or an initial referendum which includes the question
27shall not be conducted for at least one hundred eighty days
28from the date of the last such special referendum or initial
29referendum which included the separate special question.
304. Within thirty days after approval at the initial
31 referendum to establish a council and to impose an assessment
32for direct use, the department shall organize the council as
33provided in section 184A.1B.
34 Sec. 59. Section 184A.1C, subsection 4, Code 2022, is
35amended to read as follows:
-60- 14. Enter into arrangements for the collection, and deposit,
2and use of the assessment for direct use or the collection,
3deposit, and transfer of the state assessment for clean water
4as provided in this chapter.
5 Sec. 60. Section 184A.1C, Code 2022, is amended by adding
6the following new subsection:
7 NEW SUBSECTION. 7. Cooperate with the division of soil
8conservation and water quality of the department of agriculture
9and land stewardship in doing all of the following:
10a. Transferring moneys collected from the state assessment
11for clean water to the clean water fund created in section
12466B.51.
13b. Being reimbursed for reasonable expenses incurred in
14conducting an initial or special referendum to establish,
15continue, or terminate a state assessment for clean water.
16 Sec. 61. Section 184A.2, Code 2022, is amended to read as
17follows:
18184A.2 Assessment Assessments — direct use — clean water.
191. If an assessment for direct use or a state assessment for
20clean water is approved by a majority of the eligible voters
21voting at a an initial referendum or special referendum as
22provided in section 184A.1A or 184A.12, all of the following
23shall apply:
24a. The assessment for direct use or the state assessment
25for clean water shall be imposed on each turkey delivered for
26processing.
27b. (1) The council shall establish a rate of the
28 assessment for direct use and the state assessment for
29clean water for each turkey delivered for processing. The
30council may establish different rates based on attributes or
31characteristics of turkeys. However, a rate shall not be more
32than three cents for each turkey delivered for processing.
33(2) The rate of the state assessment for clean water shall
34be established by the council at a rate not to exceed the
35assessment for direct use as described in subparagraph (1) in
-61-1effect when the referendum establishing the state assessment
2passes.
3c. The assessment for direct use or the state assessment
4for clean water shall be imposed on the producer and collected
5at the time of delivery of a turkey to the processor. The
6assessment for direct use and the state assessment for clean
7water shall be deducted by the processor at the time of
8delivery from the price paid to the producer at the time of the
9sale to the processor.
10d. A processor shall remit assessments moneys collected from
11the assessment for direct use or the state assessment for clean
12water to the council on a monthly basis as provided by the
13council. The council shall deposit the remitted assessments
14 moneys collected from the assessment for direct use in the Iowa
15turkey fund as provided in section 184A.4. The council shall
16transmit moneys collected from the state assessment for clean
17water to the clean water fund created in section 466B.51.
182. The council may enter into agreements with processors
19from outside this state for the payment of the assessment for
20direct use and the state assessment for clean water.
213. a. The council shall provide for a refund of an
22assessment for direct use, and of a state assessment for
23clean water if established, according to rules adopted by the
24council.
25b. The council shall publish and disseminate applications
26for refunds. An application shall allow the applicant to elect
27whether the refund is for the assessment for direct use or a
28state assessment for clean water or both. The council shall
29not approve an application unless the application indicates the
30election.
31c. The council shall transmit any approved application for a
32refund of the state assessment for clean water to the division
33of soil conservation and water quality of the department of
34agriculture and land stewardship which shall pay a refund to
35the producer in the same manner as the council pays a refund to
-62-1the producer under paragraph “a”.
2 Sec. 62. Section 184A.3, Code 2022, is amended to read as
3follows:
4184A.3 Assessment documentation Assessments — documentation.
5A processor receiving turkeys for slaughter shall do all of
6the following:
71. At the time of payment to the producer, the processor
8shall sign and submit a receipt to the producer which includes
9the rate of the assessment for direct use imposed and the
10rate of the state assessment for clean water imposed and the
11amount of the assessment and state assessment for all turkeys
12delivered for processing.
132. Within a period established by rules adopted by the
14council, the processor shall regularly sign and submit to the
15council an invoice or other records required by the council to
16expedite collection of the assessment for direct use and the
17state assessment for clean water. The council may require that
18the processor submit a separate invoice for each purchase. The
19invoice shall be legibly printed and shall not be altered. An
20invoice shall include all of the following:
21a. The name and address of the producer and the seller, if
22the seller’s name is different from the producer.
23b. The name and address of the processor.
24c. The number of turkeys sold.
25d. The date of the delivery.
263. The council shall require the invoice to separately
27indicate the amount withheld for the assessment for direct use
28and the state assessment for clean water.
29 Sec. 63. Section 184A.4, Code 2022, is amended to read as
30follows:
31184A.4 Administration of moneys.
321. a. The assessments Moneys from the assessment for direct
33use collected by the council as provided in section 184A.2
34shall be deposited in the office of the treasurer of state in
35a special fund known as the Iowa turkey fund. The department
-63-1of administrative services shall transfer moneys from the
2fund to the council for deposit into the turkey council
3account established by the council pursuant to this section.
4The department shall transfer the moneys as provided in a
5resolution adopted by the council. However, the department is
6only required to transfer moneys once during each day and only
7during hours when the offices of the state are open.
82. b. The council shall establish a turkey council
9account in a qualified financial institution. The council
10shall provide for the deposit of all of the following into the
11account:
12a. (1) The assessment for direct use collected, deposited
13in the Iowa turkey fund, and transferred to the council as
14provided in this section.
15b. (2) Moneys, other than assessments moneys collected from
16the state assessment for clean water, but including moneys in
17the form of gifts, rents, royalties, or license fees received
18by the council pursuant to section 184A.1C.
192. Except as expressly provided in this chapter, moneys
20collected from the state assessment for clean water under this
21section shall not be used for any purpose other than to be
22transferred to the clean water fund created in section 466B.51.
23 Sec. 64. Section 184A.6, Code 2022, is amended to read as
24follows:
25184A.6 Use of moneys in turkey council account.
261. All moneys deposited in the turkey council account
27pursuant to section 184A.4 shall be used by the council for
28purposes of administering this chapter.
292. The council shall expend moneys from deposited in the
30turkey council account first for the payment of expenses for
31the collection of assessments moneys from the assessment for
32direct use and the state assessment for clean water, second
33for the payment of expenses related to conducting a special
34 referendum as provided in conducted under section 184A.12,
35and third for the cost of performing audits by the auditor of
-64-1state as required in section 184A.9. The council shall expend
2remaining moneys for market development, producer education,
3and the payment of refunds to producers as provided in this
4chapter.
5 Sec. 65. Section 184A.10, Code 2022, is amended to read as
6follows:
7184A.10 Referendum Referendums.
8Upon receipt of a petition signed by at least twenty-five
9producers requesting an initial referendum election to
10determine whether to impose the fee assessment for direct use
11 as provided in section 184A.2, and to establish a council as
12provided in chapter 184A, the secretary shall call and conduct
13an initial referendum.
14 Sec. 66. Section 184A.12, Code 2022, is amended to read as
15follows:
16184A.12 Referendum Special referendum conducted to continue
17the council and the imposition of the assessment establishment
18of assessments.
191. a. The council shall call for and conduct a special
20 referendum to continue the council established pursuant to
21section 184A.1A, and to continue the assessment for direct use
22 established pursuant to section 184A.2. The council shall call
23and conduct the referendum by election as provided in this
24section.
25b. The council shall call for and conduct a special
26referendum to continue the state assessment for clean water
27if established pursuant to section 184A.1A. The council may
28include as part of the special referendum to continue the
29council and the assessment for direct use under paragraph “a”,
30a separate special question whether to continue the state
31assessment for clean water.
322. The department shall oversee the conduct of the special
33 referendum. The special referendum shall be conducted in
34the fifth year following the initial referendum establishing
35the council and the assessment for direct use as provided in
-65-1section 184A.10.
22. 3. The following procedures shall apply to a special
3 referendum conducted pursuant to this section:
4a. The council shall publish a notice of the special
5 referendum for a period of not less than five days in at least
6one newspaper of general circulation in the state and for
7a similar period in other newspapers as prescribed by the
8council. The notice shall state the voting places, period of
9time for voting, manner of voting, and other information deemed
10necessary by the council. A referendum shall not be commenced
11until five days after the last date of publication.
12b. Upon signing a statement certifying to the council that
13a producer is an eligible voter, the producer is entitled to
14one vote in each special referendum conducted pursuant to
15this section. In order to be an eligible voter under this
16section, a producer must be a qualified producer who paid an
17 the assessment for direct use and the state assessment for
18clean water, if established, in the year in which the special
19 referendum is held conducted. The council may conduct the
20special referendum by mail, electronic means, or a general
21meeting of eligible voters. The council shall conduct the
22special referendum and count and tabulate the ballots filed
23during the special referendum within thirty days following the
24close of the special referendum.
25(1) c. If a majority of eligible voters who vote in the
26special referendum approves the continuation of continuing the
27council and the imposition of the assessment for direct use,
28the council and the imposition of the assessment shall continue
29as provided in this chapter.
30d. If a majority of eligible voters who vote in the special
31referendum approves continuing the state assessment for clean
32water, the imposition of the state assessment shall continue
33for the same period as the assessment for direct use.
34(2) e. If a majority of eligible voters who vote in the
35special referendum does not approve continuing the council and
-66-1the imposition of the assessment for direct use, the department
2shall terminate the collection of the assessment for direct
3use and the state assessment for clean water if established.
4The termination shall occur on the first day of the year for
5which the special referendum was to continue. The department
6shall terminate the activities of the council in an orderly
7manner as soon as practicable after the date that the special
8 referendum was conducted. A subsequent initial referendum may
9be held conducted as provided in section 184A.1A. However,
10the subsequent initial referendum shall not be held within
11 conducted for at least one hundred eighty days from the date of
12 that the last special referendum was conducted.
13f. If a majority of eligible voters who vote in the special
14referendum does not approve continuing the state assessment
15for clean water, the department shall terminate the state
16assessment in the same manner as described in paragraph “e”. A
17subsequent special referendum to establish a state assessment
18for clean water may be conducted as provided in section
19184A.1A. However, the subsequent special referendum shall not
20be conducted for at least one hundred eighty days from the date
21that the last special referendum was conducted.
22 Sec. 67. Section 184A.12A, Code 2022, is amended to read as
23follows:
24184A.12A Referendum Special referendum conducted to abolish
25the council and terminate the imposition of the assessment
26 assessments.
271. a. A The department may call and conduct a special
28 referendum may be called to abolish the council established
29pursuant to sections section 184A.1A, and 184A.1B, and to
30terminate the imposition of the assessment for direct use
31 established pursuant to section 184A.2, and to terminate the
32state assessment for clean water if established pursuant to
33section 184A.2.
34b. The department shall call and conduct, as provided in
35subsection 3, a special referendum to terminate the state
-67-1assessment for clean water if established pursuant to section
2184A.2.
32. The department shall call and conduct the special
4 referendum upon the department’s receipt of a petition
5requesting the special referendum. The petition must be
6signed by at least twenty eligible voters or fifty percent
7of all eligible voters, whichever is greater. In order to
8be an eligible voter under this section, a producer must be
9a qualified producer who paid an the assessment for direct
10use and any state assessment for clean water in the year in
11which the special referendum is held conducted. The special
12 referendum shall be conducted by election within sixty days
13following receipt of the petition. The petitioners shall
14guarantee payment of the cost of the special referendum by
15providing evidence of financial security as required by the
16department.
172. 3. The following procedures shall apply to a special
18 referendum conducted pursuant to this section:
19a. The department shall publish a notice of the special
20 referendum for a period of not less than five days in at least
21one newspaper of general circulation in the state and for
22a similar period in other newspapers as prescribed by the
23department. The notice shall state the voting places, period
24of time for voting, manner of voting, and other information
25deemed necessary by the department. A special referendum
26shall not be commenced until five days after the last date of
27publication.
28b. Upon signing a statement certifying to the department
29that a producer is an eligible voter, the producer is entitled
30to one vote in each special referendum conducted pursuant
31to this section. The department may conduct the special
32 referendum by mail, electronic means, or a general meeting of
33eligible voters. The department shall conduct the special
34 referendum and count and tabulate the ballots filed during the
35special referendum within thirty days following the close of
-68-1the special referendum.
2(1) c. If a majority of eligible voters who vote in the
3special referendum approves fails to approve the continuation
4of the council and the imposition of the assessment
5 termination, the council and the imposition of the direct
6 assessment shall continue as provided in this chapter.
7d. If a majority of eligible voters who vote in the special
8referendum fails to approve the termination of the council and
9direct assessment and also fails to approve the termination of
10state assessment for clean water, the state assessment shall
11continue for the same period as the assessment for direct use.
12(2) e. If a majority of eligible voters who vote in the
13special referendum does not approve continuing approves the
14termination of the council and the imposition of the assessment
15for direct use, the department shall terminate the collection
16of the assessment for direct use and any state assessment for
17clean water on the first day of the year for which the special
18 referendum was to continue. The department shall terminate
19the activities of the council in an orderly manner as soon
20as practicable after the special referendum. A subsequent
21initial referendum may be held conducted as provided in section
22184A.1A. However, the subsequent initial referendum shall
23not be held within conducted for at least one hundred eighty
24days from the date of that the last special referendum was
25conducted.
26DIVISION VII
27IOWA SOYBEAN ASSOCIATION
28 Sec. 68. Section 185.1, subsection 17, Code 2022, is amended
29to read as follows:
3017. “State assessment” or “assessment” means an excise tax
31on each bushel of soybeans marketed in this state which is
32imposed pursuant to a any of the following:
33a. A state assessment for direct use pursuant to a
34promotional order as provided in this chapter.
35b. A state assessment for clean water as provided in this
-69-1chapter.
2 Sec. 69. Section 185.1A, Code 2022, is amended to read as
3follows:
4185.1A Recognition of Iowa soybean association.
51. The corporation known as the Iowa soybean association
6incorporated under the laws of this state shall be entitled
7to the benefits of this chapter by filing each year with the
8secretary a verified proof of its organization, the names
9of its officers, and any other information required by the
10secretary.
112. The Iowa soybean association is a qualified state soybean
12board for purposes of administering a national assessment.
13For purposes of this chapter, “association” shall include a
14successor qualified state soybean board or other entity that is
15recognized by federal law to administer the national assessment
16in Iowa.
17 Sec. 70. Section 185.2, Code 2022, is amended to read as
18follows:
19185.2 Petition for election Referendums.
201. Upon receipt of a petition signed by at least five
21hundred producers requesting an initial referendum election
22 to determine whether a promotional order shall be placed in
23effect, the secretary shall call an the initial referendum
24election to be conducted within sixty days following receipt
25of the petition. Producers shall vote by written ballot in
26the manner provided by this chapter for an initial referendum
27elections.
282. If a promotional order is placed in effect, and
29upon receipt of a petition that otherwise complies with the
30requirements of this section, the secretary shall conduct a
31special referendum to establish a state assessment for clean
32water. The special referendum shall be conducted in the same
33manner as an initial referendum described in subsection 1.
343. Upon receipt of a petition that otherwise complies with
35the requirements of this section, the secretary shall include
-70-1as part of the initial referendum a separate special question
2whether to establish and impose a state assessment for clean
3water described in this section, if the secretary determines
4the inclusion of the special question is cost-effective or the
5petition demands inclusion.
6 Sec. 71. Section 185.11, Code 2022, is amended by adding the
7following new subsection:
8 NEW SUBSECTION. 5. Cooperate with the division of soil
9conservation and water quality of the department of agriculture
10and land stewardship in doing all of the following:
11a. Transferring moneys collected from the state assessment
12for clean water to the clean water fund created in section
13466B.51.
14b. Being reimbursed for reasonable expenses incurred in
15conducting an initial or special referendum to establish,
16continue, or terminate a state assessment for clean water.
17 Sec. 72. Section 185.13, subsection 4, Code 2022, is amended
18to read as follows:
194. Enter into arrangements for collection of the state
20assessment for direct use and any state assessment for clean
21water imposed on soybeans marketed in this state.
22 Sec. 73. Section 185.16, Code 2022, is amended to read as
23follows:
24185.16 Notice of referendum.
251. Notice of a referendum election to initiate or extend a
26promotional order shall be given by publication in a newspaper
27of general circulation in this state at least ten days prior
28to the date of the referendum and in any other reasonable
29manner as may be determined by the secretary for the initial
30referendum and by the board for extension of the promotional
31order.
322. Notice of a special referendum to establish or continue
33a state assessment for clean water shall be given in the same
34manner as described in subsection 1.
35 Sec. 74. Section 185.17, Code 2022, is amended to read as
-71-1follows:
2185.17 Contents of notice.
3The A notice of referendum described in section 185.16 shall
4set forth the period of time for voting, voting places and such
5other information as the secretary may deem necessary in an
6initial referendum or special referendum. The board shall make
7such determinations in any subsequent initial referendum or
8special referendum.
9 Sec. 75. Section 185.18, Code 2022, is amended to read as
10follows:
11185.18 Counting.
12At the close of a referendum voting period, the secretary
13shall count and tabulate the ballots cast during the referendum
14 period of the initial referendum or special referendum.
15 Sec. 76. Section 185.20, Code 2022, is amended to read as
16follows:
17185.20 Producers only to vote.
18Only producers are eligible to vote in an election for
19directors or a, an initial referendum election, or a special
20referendum, and only in the district in which they reside.
21A producer shall sign an affidavit at the time of voting
22certifying the producer’s eligibility to vote. Each qualified
23producer shall be entitled to one vote.
24 Sec. 77. Section 185.21, Code 2022, is amended to read as
25follows:
26185.21 Assessment State assessments — rates.
271. A state assessment which for direct use that is adopted
28 established upon the initiation of a promotional order shall
29be collected imposed during the effective period of the
30promotional order, and shall be of no force or effect upon
31termination of the promotional order.
322. a. The state assessment for direct use collected as part
33of a promotional order shall be paid into the soybean promotion
34fund established in section 185.26.
35b. The state assessment for clean water if established
-72-1pursuant to section 185.2 or continued pursuant to section
2185.25 shall be collected by the board and may be deposited
3in a qualified financial institution until transferred to the
4clean water fund created in section 466B.51.
53. The rate of the state assessment for direct use
6established as part of a promotional order shall be imposed as
7follows:
8a. If the national assessment is being collected, the rate
9of the state assessment for direct use shall be one-quarter of
10one percent of the net market price of the soybeans marketed
11in this state.
12b. If the national assessment is not being collected, the
13rate of the state assessment for direct use shall be one-half
14of one percent of the net market price of soybeans marketed in
15this state.
164. The rate of the state assessment for clean water shall
17be imposed as follows:
18a. If the national assessment is being collected, the rate
19of the state assessment for clean water shall be established
20by the board at a rate not to exceed the combined rate of the
21state assessment for direct use and the national assessment as
22described in subsection 3, paragraph “a”.
23b. If the national assessment is not being collected,
24the rate of the state assessment for clean water shall be
25established by the board at a rate not to exceed the rate of
26the state assessment for direct use as described in subsection
273, paragraph “b”.
28 Sec. 78. Section 185.22, Code 2022, is amended to read as
29follows:
30185.22 Promotional order Invoice.
311. After a promotional order has been issued, the first
32purchaser at the time of payment for soybeans shall show the
33total amount of the state assessment for direct use, and any
34state assessment for clean water, deducted from the sale on the
35purchase invoice.
-73- 12. The board shall require the invoice to separately
2indicate the amount withheld for the state assessment for
3direct use and the state assessment for clean water. The board
4may require a separate invoice for the state assessment for
5clean water. An invoice may correspond to any invoice required
6to collect the national assessment.
7 Sec. 79. Section 185.23, Code 2022, is amended to read as
8follows:
9185.23 Deduction of assessment.
10The state assessment for direct use and any state assessment
11for clean water shall be deducted from the purchase price of
12soybeans at the time of sale, and forwarded to the board by the
13first purchaser in the manner and at intervals determined by
14the board.
15 Sec. 80. Section 185.24, Code 2022, is amended to read as
16follows:
17185.24 Termination of a promotional order.
181. If a promotional order is not extended as determined
19by a special referendum, the secretary and the board shall
20terminate the promotional order in an orderly manner as soon
21as practicable. The termination of the promotional order
22shall terminate the state assessment for direct use. After
23all moneys collected from the state assessment for direct use
24 are expended, the board shall remain in existence as provided
25in its articles of incorporation or bylaws. The directors
26shall no longer be elected as required in this chapter. The
27ex officio directors shall no longer serve on the board. The
28board shall cease to administer this chapter, and the board
29shall no longer carry out its duties or exercise its powers
30as provided in this chapter. However, if a future initial
31 referendum passes, the board shall be reorganized by the
32secretary and the directors then serving on the board shall be
33deemed to be the same directors who served on the board when
34the promotional order was terminated. The directors shall
35serve out their terms as though there had been no lapse of time
-74-1between the two effective orders.
22. The termination of the promotional order shall terminate
3the state assessment for clean water. The board shall transfer
4any remaining moneys collected from the state assessment for
5clean water to the clean water fund created in section 466B.51.
6 Sec. 81. Section 185.25, Code 2022, is amended to read as
7follows:
8185.25 Special referendum referendums — producer petition
9 petitions.
101. a. Upon receipt of a petition, the secretary shall call
11a special referendum to extend the promotional order including
12continuing the state assessment for direct use as part of the
13promotional order.
14b. Upon receipt of a petition, the secretary shall call a
15special referendum to continue the state assessment for clean
16water.
17c. The secretary shall include as part of the special
18referendum described in paragraph “a” a separate special
19question described in paragraph “b” whether to continue the
20state assessment for clean water, if the secretary determines
21the inclusion of the special question is cost-effective or the
22petition demands inclusion.
232. The secretary shall call the special referendumnot
24less than one hundred fifty nor more than two hundred forty
25days from a four-year anniversary of the effective date of an
26initial promotional order, if the petition is signed within
27that same period by a number of producers equal to or greater
28than one percent of the number of producers reported in the
29most recent United States census of agriculture, requesting
30a referendum to determine whether to extend the promotional
31order, the. The secretary shall call a conduct the special
32 referendum to be conducted not earlier than thirty days before
33the four-year anniversary date.
343. a. If the secretary determines that extension of the
35promotional order is not favored approved by a majority of the
-75-1producers voting in the special referendum, the promotional
2order shall be terminated as provided in section 185.24. The
3state assessment for clean water if established shall also
4be terminated. If the promotional order is terminated under
5this paragraph, another a succeeding referendum to recommence
6the promotional order shall not be held within conducted for
7at least one hundred eighty days after the date that the most
8recent special referendum was conducted.
9b. If the secretary determines that the state assessment
10for clean water is not approved by a majority of the producers
11voting in the special referendum, that state assessment shall
12be terminated as provided in section 185.24. If the state
13assessment for clean water is terminated under this paragraph,
14another special referendum establishing the state assessment
15for clean water or another succeeding referendum to recommence
16the promotional order that includes a separate special question
17to establish the state assessment for clean water shall not
18be conducted for at least one hundred eighty days after the
19date that the last special referendum terminating the state
20assessment for direct use was conducted.
214. a. A succeeding referendum to recommence the promotional
22order shall be called by the secretary upon the petition of a
23number of producers equal to or greater than one percent of the
24number of producers reported in the most recent United States
25census of agriculture requesting a the referendum, who shall
26guarantee the costs of the referendum.
27b. Upon receipt of a petition meeting the requirements of
28paragraph “a”, the secretary shall call a special referendum to
29restore the state assessment for clean water.
30c. The secretary shall include as part of the succeeding
31referendum described in paragraph “a” a special question
32described in paragraph “b” whether to restore the state
33assessment for clean water, if the secretary determines the
34inclusion of the special question is cost-effective or the
35petition demands the inclusion.
-76- 12. 5. a. If no valid petition to extend the promotional
2order is received by the secretary within the time period
3described in subsection 1 2, or if a petition is received but
4the special referendum to extend the promotional order passes
5 is approved, the promotional order shall continue in effect for
6four additional years from the anniversary of its effective
7date.
8b. If no valid petition for a special referendum to
9continue the state assessment for clean water is received by
10the secretary within the time period described in subsection 2,
11or if the continuation of state assessment for clean water is
12approved, that state assessment shall continue in effect for
13four additional years from the anniversary of the effective
14date of the promotional order.
15 Sec. 82. NEW SECTION. 185.25A Special referendum — change
16in state assessment rate for clean water.
171. If a national assessment is imposed and upon receipt
18of a petition that otherwise complies with the requirements
19of section 185.25, the secretary shall conduct a special
20referendum to change the rate of the state assessment for
21clean water established by the board at a rate not to exceed
22the combined rate of the national assessment and the state
23assessment for direct use as provided in section 185.21,
24subsection 3, paragraph “a”. The special referendum shall be
25conducted in the same manner as a special referendum conducted
26pursuant to section 185.25. However, the special referendum
27may be conducted in the same manner and in conjunction with a
28referendum to change the rate of the national assessment, to
29the extent permitted by federal law.
302. If a national assessment is not imposed and upon receipt
31of a petition that otherwise complies with the requirements
32of section 185.25, the secretary shall conduct a special
33referendum to change the rate of the state assessment for clean
34water established by the board to a rate not to exceed the rate
35of the state assessment for direct use as provided in section
-77-1185.21, subsection 3, paragraph “b”. The special referendum
2shall be conducted in the same manner as a special referendum
3conducted pursuant to section 185.25.
43. If a special referendum or special question to change the
5rate of the state assessment for clean water is not approved,
6the result of the vote shall not affect the existence or period
7during which that state assessment is in effect.
8 Sec. 83. Section 185.26, Code 2022, is amended to read as
9follows:
10185.26 Administration of moneys.
111. a. The Moneys from a state assessment for direct use
12imposed as part of a promotional order and collected by the
13board shall be deposited in a special fund known as the soybean
14promotion fund, in the office of the treasurer of state. The
15fund may also contain include any gifts or federal or state
16grant received by the board. Moneys The moneys collected,
17deposited into the fund, and transferred to the board, as
18provided in this chapter, shall be subject to audit by the
19auditor of state.
20b. The department of administrative services shall
21transfer moneys from the fund to the board for deposit into an
22account known as the soybean checkoff account which shall be
23established by the board in a qualified financial institution.
24The department shall transfer the moneys into the account as
25provided in a resolution adopted by the board. However, the
26department is only required to transfer moneys once during each
27day and only during hours when the offices of the state are
28open.
29c. From moneys collected, deposited, and transferred to
30the soybean checkoff account as provided in this section, the
31board shall first pay the costs of referendums, elections, and
32other expenses incurred in the administration of this chapter,
33before moneys may be expended to carry out the purposes of the
34board as provided in section 185.11. The board shall strictly
35segregate moneys in the soybean checkoff account from all other
-78-1moneys of the board. Moneys in the soybean checkoff account
2shall be expended by the board exclusively for carrying out
3the purposes of the board as provided in section 185.11. The
4account shall be subject to audit by the auditor of state.
52. Moneys from a state assessment for clean water collected
6by the board may be deposited in a qualified financial
7institution and shall be transferred to the clean water fund
8created in section 466B.51.
92. 3. The fiscal year of the association shall commence on
10October 1 and end on September 30.
11 Sec. 84. Section 185.27, Code 2022, is amended to read as
12follows:
13185.27 Refund of assessment.
141. a. A producer who has sold soybeans and had the state
15assessment for direct use deducted from the sale price may, by
16application in writing to the board, secure a refund in the
17amount deducted. The refund shall be payable only when the
18application is made to the board within sixty days after the
19deduction.
20b. A producer who has sold soybeans and had the state
21assessment for clean water deducted from the sale price may,
22by application in writing to the board, secure a refund of the
23amount deducted payable by the division of soil conservation
24and water quality of the department of agriculture and land
25stewardship. The board shall forward approved applications to
26the division within sixty days after the deduction.
272. Application forms shall be given by the board to
28each first purchaser when requested and the first purchaser
29shall make the applications available to any producer. Each
30application for refund by a producer shall have attached
31thereto proof of assessment deducted. The proof of assessment
32may be in the form of a duplicate or certified copy of the
33purchase invoice by the first purchaser. The board shall
34have thirty days from the date the application for refund is
35received to remit the refund to the producer. The form shall
-79-1allow the applicant to elect whether the refund is for the
2state assessment for direct use or for the state assessment
3for clean water or both. The board shall not approve an
4application unless the application indicates the election.
5 Sec. 85. Section 185.28, Code 2022, is amended to read as
6follows:
7185.28 Use of moneys — appropriation.
81. All moneys collected, deposited, and transferred to the
9board as provided in this chapter, are appropriated and shall
10be used for the administration of this chapter by the board and
11for the payment of claims by the board based upon obligations
12incurred in the performance of board activities and functions
13provided in this chapter.
142. Except as expressly provided in this chapter, moneys
15collected from the state assessment for clean water under this
16section shall not be used for any purpose other than to be
17transferred to the clean water fund created in section 466B.51.
18 Sec. 86. Section 185.29, Code 2022, is amended to read as
19follows:
20185.29 Remission of remaining moneys.
211. After the board has paid the costs of elections,
22referendum, necessary board expenses, and administrative costs,
23the remaining moneys collected, deposited in the soybean
24promotion fund, and transferred to the soybean checkoff account
25as provided in section 185.26 shall be expended by the board as
26is necessary to carry out its purposes as provided in section
27185.11.
282. Notwithstanding subsection 1, moneys collected from
29a state assessment for clean water by the board shall be
30transferred to the clean water fund created in section 466B.51.
31 Sec. 87. Section 185.33, Code 2022, is amended to read as
32follows:
33185.33 Report.
34The board shall each year prepare and submit a report
35summarizing the activities of the board under this chapter to
-80-1the auditor of state and the secretary of agriculture. The
2report shall show all income, expenses, and other relevant
3information concerning fees state assessments for direct use
4 collected and expended under the provisions of this chapter.
5DIVISION VIII
6IOWA CORN PROMOTION BOARD
7 Sec. 88. Section 185C.1, subsection 17, Code 2022, is
8amended to read as follows:
917. “State assessment” means a state excise tax on each
10bushel of corn marketed in this state which is imposed as part
11of a promotional order to administer this chapter pursuant to a
12state assessment for direct use or a state assessment for clean
13water.
14 Sec. 89. Section 185C.2, Code 2022, is amended to read as
15follows:
16185C.2 Petition for election Referendums.
171. Upon receipt of a petition signed by at least five
18hundred producers requesting an initial referendum election
19 to determine whether a promotional order shall be placed in
20effect, the secretary shall call an initial referendum election
21 to be conducted within sixty days following receipt of the
22petition. Producers shall vote by written ballot in the manner
23provided by this chapter for a referendum elections to approve
24the placement in effect of a promotional order.
252. a. If a promotional order is placed in effect, a state
26assessment for direct use shall be established.
27b. If a promotional order is placed in effect, and upon
28receipt of a petition that otherwise complies with the
29requirements of subsection 1, the secretary shall conduct a
30special referendum to establish a state assessment for clean
31water.
32c. Upon receipt of a petition that otherwise complies with
33the requirements of subsection 1, the secretary shall include
34as part of the initial referendum a separate special question
35whether to establish a state assessment for clean water, as
-81-1described in paragraph “b”, if the secretary determines the
2inclusion of the special question is cost-effective or the
3petition demands inclusion.
4 Sec. 90. Section 185C.3, Code 2022, is amended to read as
5follows:
6185C.3 Establishment of corn promotion board.
7If a majority of the producers voting in the an initial
8 referendum election conducted pursuant to section 185C.2
9 approve the passage of the promotional order, an Iowa corn
10promotion board shall be established.
11 Sec. 91. Section 185C.11, subsection 1, Code 2022, is
12amended by adding the following new paragraph:
13 NEW PARAGRAPH. j. Cooperate with the division of soil
14conservation and water quality of the department of agriculture
15and land stewardship in doing all of the following:
16(1) Transferring moneys collected from the state assessment
17for clean water to the clean water fund created in section
18466B.51.
19(2) Being reimbursed for reasonable expenses incurred
20in conducting an initial or special referendum to establish,
21continue, or terminate a state assessment for clean water.
22 Sec. 92. Section 185C.11A, Code 2022, is amended by adding
23the following new subsection:
24 NEW SUBSECTION. 5. The board shall not expend moneys
25collected from the state assessment for clean water to support
26the program.
27 Sec. 93. Section 185C.15, Code 2022, is amended to read as
28follows:
29185C.15 Term of promotional order — automatic extension.
30A promotional order shall be effective for four years from
31its effective date. Upon the date that an the promotional
32 order is due to expire the order shall automatically be
33extended for an additional four years from the date that the
34order or last extension would otherwise expire, except as
35provided in section 185C.24. A state assessment for clean
-82-1water shall continue for the same period as the promotional
2order unless the state assessment for clean water is terminated
3as provided in section 185C.24.
4 Sec. 94. Section 185C.21, Code 2022, is amended to read as
5follows:
6185C.21 State assessment assessments — rates.
71. The board shall determine and set the rate of the state
8assessment rate for direct use as part of the promotional
9order. State assessments A state assessment for direct use
10 collected pursuant to the promotional order shall be paid
11into the corn promotion fund established in section 185C.26.
12Except as provided in subsection 2 subsections 2 and 3, a state
13assessment for direct use shall not exceed one-quarter of one
14cent per bushel upon corn marketed in this state.
152. Upon request of the board, the secretary shall call
16a special referendum for producers to vote on whether to
17authorize an increase in the rate of the state assessment
18for direct use above one-quarter of one cent per bushel,
19notwithstanding subsection 1. The special referendum shall be
20conducted as provided in this chapter for referendum elections
21 referendums. However, the special referendum shall not affect
22the existence or length of the promotional order in effect. If
23a majority of the producers voting in the special referendum
24approve the increase, the board may increase the state
25 assessment for direct use to the amount approved in the special
26referendum. The board shall establish the effective date of
27a rate change. However, the rate of a state assessment for
28direct use shall not exceed a scheduled maximum rate determined
29as follows:
30a. Before September 1, 2014, one cent.
31b. For each marketing year of the period beginning September
321, 2014, and ending August 31, 2019, two cents.
33c. For each marketing year beginning on and after September
341, 2019, three cents.
353. The rate of the state assessment for clean water shall
-83-1be established by the board not to exceed the rate of the
2state assessment for direct use in effect on the date that the
3special referendum establishing the state assessment for clean
4water is approved.
54. a. Upon request of the board, the secretary shall
6call a special referendum for producers to vote on whether to
7authorize an increase in the state assessment for clean water
8to be established by the board at a rate not to exceed the
9rate of the state assessment for direct use in effect under
10subsection 2. The special referendum shall be conducted in the
11same manner as provided in that subsection.
12b. Upon request of the board, the secretary shall include,
13as part of the special referendum conducted under subsection
142, a separate special question whether to increase the rate
15of the state assessment for clean water to be established by
16the board at a rate not to exceed the rate of the proposed
17increased amount of the state assessment for direct use, if the
18secretary determines the inclusion of the special question is
19cost-effective or the request demands inclusion.
20 Sec. 95. Section 185C.22, Code 2022, is amended to read as
21follows:
22185C.22 State assessment assessments on purchase invoice.
231. After a promotional order has been issued, the first
24purchaser at the time of payment for corn shall show the
25total amount of state assessment for direct use and the state
26assessment for clean water deducted from the sale on the
27purchase invoice.
282. The board shall require the invoice to separately
29indicate the amount withheld for the state assessment for
30direct use and the state assessment for clean water. The board
31may require a separate invoice for the state assessment for
32clean water. An invoice may correspond to any invoice required
33to collect the federal assessment pursuant to section 185C.25A.
34 Sec. 96. Section 185C.24, Code 2022, is amended to read as
35follows:
-84- 1185C.24 Cancellation, and suspension, and termination.
21. The board shall be suspended and board operations and
3terms of members shall cease upon either of the following
4events:
5a. The state assessment for direct use is terminated
6pursuant to section 185C.25.
7b. The state assessment for direct use is suspended pursuant
8to section 185C.25A.
92. a. However, notwithstanding subsection 1, the board
10shall continue to operate until proceeds remaining in the corn
11promotion fund are disbursed. Disbursement shall be made as
12provided for payment of moneys under section 185C.26.
13b. In addition, the board shall continue to transfer
14remaining moneys collected from the state assessment for clean
15water to the clean water fund created in section 466B.51.
163. The secretary shall order that the board be reconstituted
17upon either of the following events:
18a. Recommencement of the promotional order, pursuant to
19section 185C.25.
20b. Termination of the promotional order’s suspension,
21pursuant to section 185C.25A.
224. Until the board is reconstituted under section 185C.8,
23the secretary has the powers to perform the duties of the board
24as provided in this chapter, including the collection of the
25state assessment for direct use at the rate in effect on the
26date when collection of the state assessment for direct use
27 was terminated pursuant to section 185C.25. However, the
28secretary shall not expend funds moneys collected from the
29 state assessment for direct use.
305. Until the board is reconstituted, the secretary shall
31collect any state assessment for clean water equal to the rate
32when the state assessment for clean water was terminated. The
33secretary shall transfer the collected moneys to the clean
34water fund created in section 466B.51.
35 Sec. 97. Section 185C.25, Code 2022, is amended to read as
-85-1follows:
2185C.25 Effective period of promotional order and state
3assessments — special referendums — termination.
41. a. A state assessment for direct use adopted upon the
5initiation of a promotional order shall be collected during
6the effective period of the promotional order, and. The state
7assessment for direct use shall have no effect upon termination
8of the promotional order.
9b. A state assessment for clean water if established shall
10be collected during the effective period of the promotional
11order. The state assessment for clean water shall have no
12effect upon the termination of the promotional order.
132. Upon adoption or extension of the promotional order, the
14order shall be effective for the period described in section
15185C.15 unless the order is terminated as provided in this
16section or suspended as provided in section 185C.25A.
172. 3. a. The secretary shall call a special referendum to
18terminate the promotional order including the state assessment
19for direct use imposed as part of the promotional order, and
20the state assessment for clean water if established.
21b. The secretary shall call, as provided in subsection 4, a
22special referendum to terminate the state assessment for clean
23water, if established.
24c. The secretary shall include, as part of the special
25referendum conducted under paragraph “a”, a separate special
26question whether to terminate the state assessment for clean
27water, if the secretary determines the inclusion of the special
28question is cost-effective or the petition demands inclusion.
294. The secretary shall call a special referendum under this
30sectionif all the following conditions are met:
31a. The secretary receives a petition signed by at least five
32percent of the state’s producers reported in the most recent
33United States census of agriculture.
34b. The petition is signed by at least five percent of the
35state’s producers residing in each of five districts according
-86-1to the most recent United States census of agriculture.
2c. The secretary receives the petition not less than one
3hundred fifty days from the date that the order is due to
4expire, but receives the petition not more than two hundred
5forty days before the date that the order is due to expire.
63. 5. a. The secretary shall conduct the election as
7provided for a special referendum to terminate the promotional
8order including the state assessment for direct use and the
9state assessment for clean water in the same manner as an
10initial referendum conducted under this chapter, including
11sections 185C.16 through 185C.20.
12b. The secretary shall conduct the special referendum to
13terminate the state assessment for clean water in the same
14manner as an initial referendum conducted under this chapter,
15including sections 185C.16 through 185C.20.
166. a. If upon counting and tabulating the ballots, the
17secretary determines that a majority of voting producers favor
18 approves termination of the state assessment promotional order,
19the secretary, in cooperation with the board, shall terminate
20the state assessment for direct use and any state assessment
21for clean water in an orderly manner as soon as practicable.
22b. If upon counting and tabulating the ballots, the
23secretary determines that a majority of voting producers
24approves termination of the state assessment for clean water,
25the secretary, in cooperation with the board, shall terminate
26the state assessment for clean water in an orderly manner as
27soon as practicable.
284. 7. a. If the assessment the promotional order is
29terminated, another a succeeding referendum to recommence the
30promotional order shall not be held conducted for at least
31one hundred eighty days from the date that the assessment
32 promotional order is terminated.
33b. If a state assessment for clean water is terminated,
34another special referendum or a succeeding referendum to
35recommence the promotional order which includes a separate
-87-1special question to establish a state assessment shall not be
2conducted for at least one hundred eighty days from the date
3that the promotional order is terminated.
48. A succeeding referendum to restore the assessment
5 recommence the promotional order shall be called by the
6secretary upon receipt of a petition of at least five hundred
7producers requesting a the special referendum. The petitioners
8shall guarantee the costs of the succeeding referendum. The
9secretary shall conduct the election succeeding referendum as
10provided for a an initial referendum under this chapter
11section 185C.2 not later than one hundred fifty days after the
12secretary receives the petition. If a succeeding referendum
13held conducted pursuant to this subsection is approved by
14producers, the promotional order shall commence recommence no
15later than two hundred ten days following the date that the
16petition is received by the secretary.
179. a. A special referendum to restore the state assessment
18for clean water shall be called by the secretary upon petition
19that otherwise complies with a petition to recommence the
20promotional order under subsection 8. The secretary shall
21conduct the special referendum in the same manner as a
22succeeding referendum conducted under that subsection. If a
23special referendum conducted pursuant to this paragraph is
24approved by producers, the state assessment for clean water
25shall resume not later than two hundred ten days following the
26date that the petition is received by the secretary.
27b. Upon receipt of a petition that otherwise complies with
28a petition to recommence the promotional order under subsection
298, the secretary shall include as part of the succeeding
30referendum conducted under that subsection a separate special
31question whether to restore the state assessment for clean
32water, if the secretary determines the inclusion of the special
33question is cost-effective or the request demands inclusion.
34If the special question is approved by producers, the state
35assessment for clean water shall resume in the same manner as
-88-1described in paragraph “a”.
2 Sec. 98. Section 185C.25A, Code 2022, is amended to read as
3follows:
4185C.25A Collection of federal assessment.
51. a. Prior to the collection of the federal assessment,
6the board may approve the continued collection of the state
7assessment for direct use as part of the promotional order
8 during the collection of the federal assessment.
9b. If a federal assessment is collected, the state
10assessment for clean water, if established, shall continue to
11be collected until terminated under section 185C.25.
122. If the collection of amount collected from the state
13assessment for direct use would be in addition to, and not an
14offset against, the collection of amount collected from the
15federal assessment, the board shall suspend the collection of
16the state assessment.
17a. On the date of the termination or suspension of the
18federal assessment, the promotional order shall recommence and
19the suspension of the state assessment for direct use shall
20terminate.
21b. On the date of the termination or suspension of the
22federal assessment, the suspension of the state assessment for
23clean water shall terminate.
24 Sec. 99. Section 185C.26, Code 2022, is amended to read as
25follows:
26185C.26 Deposit of moneys — corn promotion fund —
27administration of moneys.
281. a. A Moneys from a state assessment for direct use
29imposed as part of a promotional order and collected by the
30board from a sale of corn shall be deposited in the office of
31the treasurer of state in a special fund known as the corn
32promotion fund. The corn promotion fund may also include
33any gifts, rents, royalties, interest, license fees, or a
34federal or state grant received by the board. Moneys The
35moneys collected, deposited in the corn promotion fund, and
-89-1transferred to the board as provided in this chapter shall be
2subject to audit by the auditor of state. The auditor of state
3may seek reimbursement for the cost of the audit from moneys
4deposited in the fund as provided in this chapter.
5b. The department of administrative services shall transfer
6moneys from the corn promotion fund to the board for deposit
7into an account established by the board in a qualified
8financial institution. The department shall transfer the
9moneys as provided in a resolution adopted by the board.
10However, the department is only required to transfer moneys
11once during each day and only during hours when the offices of
12the state are open.
13c. From moneys collected, the board shall first pay all
14the direct and indirect costs incurred by the secretary and
15the costs of initial and special referendums, elections, and
16other expenses incurred in the administration of this chapter,
17before moneys may be expended to carry out the purposes of this
18chapter as provided in section 185C.11.
192. Moneys from a state assessment for clean water collected
20by the board may be deposited in a qualified financial
21institution and shall be transferred to the clean water fund
22created in section 466B.51.
23 Sec. 100. Section 185C.27, Code 2022, is amended to read as
24follows:
25185C.27 Refund of assessment state assessments.
261. a. A producer who has sold corn and had a state
27assessment for direct use deducted from the sale price, by
28application in writing to the board, may secure a refund in the
29amount deducted. The refund shall be payable only when the
30application shall have been made to the board within sixty days
31after the deduction. The board shall have thirty days from the
32date the application for refund is received to remit the refund
33to the producer.
34b. A producer who has sold corn and had the state
35assessment for clean water deducted from the sale price may,
-90-1by application in writing to the board, secure a refund of the
2amount deducted payable by the division of soil conservation
3and water quality of the department of agriculture and land
4stewardship. The board shall forward approved applications to
5the division within sixty days after the deduction.
62. Application forms shall be given by the board to
7each first purchaser when requested and the first purchaser
8shall make the applications available to any producer. Each
9application for refund by a producer shall have attached to
10the application proof of the state assessment deducted. The
11proof of state assessment may be in the form of a duplicate
12or certified copy of the purchase invoice by the first
13purchaser. The board shall have thirty days from the date the
14application for refund is received to remit the refund to the
15producer. The form shall allow the applicant to elect whether
16the refund is for the state assessment for direct use or the
17state assessment for clean water or both. The board shall not
18approve an application unless the application indicates the
19election.
203. a. The board may provide for refunds of a federal
21assessment as provided by federal law. Unless inconsistent
22with federal law, refunds shall be made under section 185C.26.
23b. The board may provide for filing applications for a
24refund of the state assessment for direct use and the state
25assessment for clean water based on applicable procedures
26for the filing of applications for refunds of the federal
27assessment.
28 Sec. 101. Section 185C.29, subsection 1, Code 2022, is
29amended to read as follows:
301. a. After the direct and indirect costs incurred by the
31secretary and the costs of elections, referendums, necessary
32board expenses, and administrative costs have been paid, at
33least seventy-five percent of the remaining moneys from a
34state assessment for direct use shall be deposited in the corn
35promotion fund and shall be used to carry out the purposes of
-91-1the board as provided in section 185C.11.
2b. Except as expressly provided in this chapter, moneys
3collected from the state assessment for clean water shall not
4be used for any purpose other than to be transferred to the
5clean water fund created pursuant to section 466B.51.
6 Sec. 102. Section 185C.33, Code 2022, is amended to read as
7follows:
8185C.33 Report.
9The board shall each year prepare and submit a report
10summarizing the activities of the board under this chapter to
11the auditor of state and the secretary of agriculture. The
12report shall show all income, expenses, and other relevant
13information concerning fees the state assessment for direct use
14 collected and expended under the provisions of this chapter.
15DIVISION IX
16CLEAN WATER FUND
17 Sec. 103. NEW SECTION. 7D.10B Payment to the clean water
18fund.
19If moneys are not sufficient to reimburse the department of
20agriculture and land stewardship or a commodity organization
21described in section 466B.51 for reasonable expenses incurred
22in conducting a referendum to establish, continue, or terminate
23a state assessment for clean water, the executive council may
24authorize as an expense paid from the appropriations addressed
25in section 7D.29 the payment of an amount to the clean water
26fund created in section 466B.51. However, not more than a
27total of one hundred thousand dollars shall be paid pursuant
28to this section to the fund at any one time to pay for expenses
29incurred in conducting a referendum.
30 Sec. 104. Section 423.2, subsections 1, 2, 3, 4, 5, 7, 8, 9,
3110, and 12, Code 2022, are amended to read as follows:
321. a. There is imposed a tax of six percent upon the sales
33price of all sales of tangible personal property, sold at
34retail in the state to consumers or users except as otherwise
35provided in this subchapter. This paragraph is repealed on the
-92-1date that paragraph “b” takes effect.
2b. There is imposed a tax of six and one-eighth percent upon
3the sales price of all sales of tangible personal property,
4consisting of goods, wares, or merchandise, sold at retail in
5the state to consumers or users except as otherwise provided
6in this subchapter. This paragraph takes effect on July 1 of
7the fiscal year in which the department receives the first
8certification that commodity organizations have collected
9twenty million dollars from state assessments for clean
10water during the preceding fiscal year as provided in section
11466B.55. This paragraph is repealed on the date that paragraph
12“c” takes effect.
13c. There is imposed a tax of six and two-eighths percent
14upon the sales price of all sales of tangible personal
15property, consisting of goods, wares, or merchandise, sold at
16retail in the state to consumers or users except as otherwise
17provided in this subchapter. This paragraph takes effect on
18July 1 of the fiscal year in which the department receives
19the second certification that commodity organizations have
20collected twenty million dollars from state assessments for
21clean water during the preceding fiscal year as provided in
22section 466B.55. This paragraph is repealed on the date that
23paragraph “d” takes effect.
24d. There is imposed a tax of six and three-eighths percent
25upon the sales price of all sales of tangible personal
26property, consisting of goods, wares, or merchandise, sold at
27retail in the state to consumers or users except as otherwise
28provided in this subchapter. This paragraph takes effect on
29July 1 of the fiscal year in which the department receives
30the third certification that commodity organizations have
31collected twenty million dollars from state assessments for
32clean water during the preceding fiscal year as provided in
33section 466B.55.
34a. e. For the purposes of this subchapter, sales of
35the following services are treated as if they were sales of
-93-1tangible personal property:
2(1) Sales of engraving, printing, and binding services.
3(2) Sales of vulcanizing, recapping, and retreading
4services.
5(3) Sales of prepaid calling services and prepaid wireless
6calling services.
7(4) Sales of optional service or warranty contracts, except
8residential service contracts regulated under chapter 523C,
9which provide for the furnishing of labor and materials and
10require the furnishing of any taxable service enumerated under
11this section. The sales price is subject to tax even if some of
12the services furnished are not enumerated under this section.
13Additional sales, services, or use taxes shall not be levied
14on services, parts, or labor provided under optional service
15or warranty contracts which are subject to tax under this
16subsection.
17(5) Sales of optional service or warranty contracts for
18computer software maintenance or support services.
19(a) If a service or warranty contract does not specify a fee
20amount for nontaxable services or taxable personal property,
21the tax imposed pursuant to this section shall be imposed upon
22an amount equal to the sales price of the contract.
23(b) If a service or warranty contract provides only for
24technical support services, no tax shall be imposed pursuant to
25this section.
26(6) Subparagraphs (4) and (5) shall also apply to the use
27tax imposed under section 423.5.
28b. f. Sales of building materials, supplies, and equipment
29to owners, contractors, subcontractors, or builders for the
30erection of buildings or the alteration, repair, or improvement
31of real property are retail sales of tangible personal property
32in whatever quantity sold. Where the owner, contractor,
33subcontractor, or builder is also a retailer holding a retail
34sales tax permit and transacting retail sales of building
35materials, supplies, and equipment, the person shall purchase
-94-1such items of tangible personal property without liability for
2the tax if such property will be subject to the tax at the
3time of resale or at the time it is withdrawn from inventory
4for construction purposes. The sales tax shall be due in the
5reporting period when the materials, supplies, and equipment
6are withdrawn from inventory for construction purposes or
7when sold at retail. The tax shall not be due when materials
8are withdrawn from inventory for use in construction outside
9of Iowa and the tax shall not apply to tangible personal
10property purchased and consumed by the manufacturer as building
11materials in the performance by the manufacturer or its
12subcontractor of construction outside of Iowa. The sale of
13carpeting is not a sale of building materials. The sale of
14carpeting to owners, contractors, subcontractors, or builders
15shall be treated as the sale of ordinary tangible personal
16property and subject to the tax imposed under this subsection
17and the use tax.
18c. g. The use within this state of tangible personal
19property by the manufacturer thereof, as building materials,
20supplies, or equipment, in the performance of construction
21contracts in Iowa, shall, for the purpose of this subchapter,
22be construed as a sale at retail of tangible personal property
23by the manufacturer who shall be deemed to be the consumer of
24such tangible personal property. The tax shall be computed
25upon the cost to the manufacturer of the fabrication or
26production of the tangible personal property.
272. a. A tax of six percent is imposed upon the sales price
28of the sale or furnishing of gas, electricity, water, heat,
29pay television service, and communication service, including
30the sales price from such sales by any municipal corporation
31or joint water utility furnishing gas, electricity, water,
32heat, pay television service, and communication service to
33the public in its proprietary capacity, except as otherwise
34provided in this subchapter, when sold at retail in the state
35to consumers or users. This paragraph is repealed on the date
-95-1that paragraph “b” takes effect.
2b. A tax of six and one-eighth percent is imposed upon the
3sales price of the sale or furnishing of gas, electricity,
4water, heat, pay television service, and communication service,
5including the sales price from such sales by any municipal
6corporation or joint water utility furnishing gas, electricity,
7water, heat, pay television service, and communication service
8to the public in its proprietary capacity, except as otherwise
9provided in this subchapter, when sold at retail in the state
10to consumers or users. This paragraph takes effect on July 1
11of the fiscal year in which the department receives the first
12certification that commodity organizations have collected
13twenty million dollars from state assessments for clean
14water during the preceding fiscal year as provided in section
15466B.55. This paragraph is repealed on the date that paragraph
16“c” takes effect.
17c. A tax of six and two-eighths percent is imposed upon
18the sales price of the sale or furnishing of gas, electricity,
19water, heat, pay television service, and communication service,
20including the sales price from such sales by any municipal
21corporation or joint water utility furnishing gas, electricity,
22water, heat, pay television service, and communication service
23to the public in its proprietary capacity, except as otherwise
24provided in this subchapter, when sold at retail in the state
25to consumers or users. This paragraph takes effect on July 1
26of the fiscal year in which the department receives the second
27certification that commodity organizations have collected
28twenty million dollars from state assessments for clean
29water during the preceding fiscal year as provided in section
30466B.55. This paragraph is repealed on the date that paragraph
31“d” takes effect.
32d. A tax of six and three-eighths percent is imposed upon
33the sales price of the sale or furnishing of gas, electricity,
34water, heat, pay television service, and communication service,
35including the sales price from such sales by any municipal
-96-1corporation or joint water utility furnishing gas, electricity,
2water, heat, pay television service, and communication service
3to the public in its proprietary capacity, except as otherwise
4provided in this subchapter, when sold at retail in the state
5to consumers or users. This paragraph takes effect on July 1
6of the fiscal year in which the department receives the third
7certification that commodity organizations have collected
8twenty million dollars from state assessments for clean
9water during the preceding fiscal year as provided in section
10466B.55.
113. a. A tax of six percent is imposed upon the sales price
12of all sales of tickets or admissions to places of amusement,
13fairs, and athletic events except those of elementary and
14secondary educational institutions. A tax of six percent is
15imposed on the sales price of an entry fee or like charge
16imposed solely for the privilege of participating in an
17activity at a place of amusement, fair, or athletic event
18unless the sales price of tickets or admissions charges for
19observing the same activity are taxable under this subchapter.
20A tax of six percent is imposed upon that part of private
21club membership fees or charges paid for the privilege of
22participating in any athletic sports provided club members.
23This paragraph is repealed on the date that paragraph “b” takes
24effect.
25b. A tax of six and one-eighth percent is imposed upon the
26sales price of all sales of tickets or admissions to places
27of amusement, fairs, and athletic events except those of
28elementary and secondary educational institutions. A tax of
29six and one-eighth percent is imposed on the sales price of an
30entry fee or like charge imposed solely for the privilege of
31participating in an activity at a place of amusement, fair, or
32athletic event unless the sales price of tickets or admissions
33charges for observing the same activity are taxable under this
34subchapter. A tax of six and one-eighth percent is imposed
35upon that part of private club membership fees or charges paid
-97-1for the privilege of participating in any athletic sports
2provided club members. This paragraph takes effect on July 1
3of the fiscal year in which the department receives the first
4certification that commodity organizations have collected
5twenty million dollars from state assessments for clean
6water during the preceding fiscal year as provided in section
7466B.55. This paragraph is repealed on the date that paragraph
8“c” takes effect.
9c. A tax of six and two-eighths percent is imposed upon the
10sales price of all sales of tickets or admissions to places
11of amusement, fairs, and athletic events except those of
12elementary and secondary educational institutions. A tax of
13six and two-eighths percent is imposed on the sales price of
14an entry fee or like charge imposed solely for the privilege
15of participating in an activity at a place of amusement,
16fair, or athletic event unless the sales price of tickets or
17admissions charges for observing the same activity are taxable
18under this subchapter. A tax of six and two-eighths percent
19is imposed upon that part of private club membership fees or
20charges paid for the privilege of participating in any athletic
21sports provided club members. This paragraph takes effect on
22July 1 of the fiscal year in which the department receives
23the second certification that commodity organizations have
24collected twenty million dollars from state assessments for
25clean water during the preceding fiscal year as provided in
26section 466B.55. This paragraph is repealed on the date that
27paragraph “d” takes effect.
28d. A tax of six and three-eighths percent is imposed upon
29the sales price of all sales of tickets or admissions to places
30of amusement, fairs, and athletic events except those of
31elementary and secondary educational institutions. A tax of
32six and three-eighths percent is imposed on the sales price of
33an entry fee or like charge imposed solely for the privilege
34of participating in an activity at a place of amusement,
35fair, or athletic event unless the sales price of tickets or
-98-1admissions charges for observing the same activity are taxable
2under this subchapter. A tax of six and three-eighths percent
3is imposed upon that part of private club membership fees or
4charges paid for the privilege of participating in any athletic
5sports provided club members. This paragraph takes effect on
6July 1 of the fiscal year in which the department receives
7the third certification that commodity organizations have
8collected twenty million dollars from state assessments for
9clean water during the preceding fiscal year as provided in
10section 466B.55.
114. a. (1) A tax of six percent is imposed upon the sales
12price derived from the operation of all forms of amusement
13devices and games of skill, games of chance, raffles, and bingo
14games as defined in chapter 99B, and card game tournaments
15conducted under section 99B.27, that are operated or conducted
16within the state, the tax to be collected from the operator in
17the same manner as for the collection of taxes upon the sales
18price of tickets or admission as provided in this section.
19Nothing in this subsection shall legalize any games of skill
20or chance or slot-operated devices which are now prohibited
21by law. This subparagraph is repealed on the date that
22subparagraph (2) takes effect.
23(2) A tax of six and one-eighth percent is imposed upon
24the sales price derived from the operation of all forms of
25amusement devices and games of skill, games of chance, raffles,
26and bingo games as defined in chapter 99B, and card game
27tournaments conducted under section 99B.27, that are operated
28or conducted within the state, the tax to be collected from
29the operator in the same manner as for the collection of taxes
30upon the sales price of tickets or admission as provided in
31this section. This subparagraph takes effect on July 1 of
32the fiscal year in which the department receives the first
33certification that commodity organizations have collected
34twenty million dollars from state assessments for clean
35water during the preceding fiscal year as provided in section
-99-1466B.55. This subparagraph is repealed on the date that
2subparagraph (3) takes effect.
3(3) A tax of six and two-eighths percent is imposed upon
4the sales price derived from the operation of all forms of
5amusement devices and games of skill, games of chance, raffles,
6and bingo games as defined in chapter 99B, and card game
7tournaments conducted under section 99B.27, that are operated
8or conducted within the state, the tax to be collected from
9the operator in the same manner as for the collection of taxes
10upon the sales price of tickets or admission as provided in
11this section. This subparagraph takes effect on July 1 of
12the fiscal year in which the department receives the second
13certification that commodity organizations have collected
14twenty million dollars from state assessments for clean
15water during the preceding fiscal year as provided in section
16466B.55. This subparagraph is repealed on the date that
17subparagraph (4) takes effect.
18(4) A tax of six and three-eighths percent is imposed upon
19the sales price derived from the operation of all forms of
20amusement devices and games of skill, games of chance, raffles,
21and bingo games as defined in chapter 99B, and card game
22tournaments conducted under section 99B.27, that are operated
23or conducted within the state, the tax to be collected from
24the operator in the same manner as for the collection of taxes
25upon the sales price of tickets or admission as provided in
26this section. This subparagraph takes effect on July 1 of
27the fiscal year in which the department receives the third
28certification that commodity organizations have collected
29twenty million dollars from state assessments for clean
30water during the preceding fiscal year as provided in section
31466B.55.
32b. (1) The tax imposed under this subsection covers the
33total amount from the operation of games of skill, games
34of chance, raffles, and bingo games as defined in chapter
3599B, card game tournaments conducted under section 99B.27,
-100-1and musical devices, weighing machines, shooting galleries,
2billiard and pool tables, bowling alleys, pinball machines,
3slot-operated devices selling merchandise not subject to the
4general sales taxes and on the total amount from devices or
5systems where prizes are in any manner awarded to patrons and
6upon the receipts from fees charged for participation in any
7game or other form of amusement, and generally upon the sales
8price from any source of amusement operated for profit, not
9specified in this section, and upon the sales price from which
10tax is not collected for tickets or admission, but tax shall
11not be imposed upon any activity exempt from sales tax under
12section 423.3, subsection 78.
13(2) Every person receiving any sales price from the sources
14described in this section is subject to all provisions of this
15subchapter relating to retail sales tax and other provisions
16of this chapter as applicable.
17c. Nothing in this subsection shall legalize any games
18of skill or chance or slot-operated devices which are now
19prohibited by law.
205. a. There is imposed a tax of six percent upon the sales
21price from the furnishing of services as defined in section
22423.1. This paragraph is repealed on the date that paragraph
23“b” takes effect.
24b. There is imposed a tax of six and one-eighth percent
25upon the sales price from the furnishing of services as defined
26in section 423.1. This paragraph takes effect on July 1 of
27the fiscal year in which the department receives the first
28certification that commodity organizations have collected
29twenty million dollars from state assessments for clean
30water during the preceding fiscal year as provided in section
31466B.55. This paragraph is repealed on the date that paragraph
32“c” takes effect.
33c. There is imposed a tax of six and two-eighths percent
34upon the sales price from the furnishing of services as defined
35in section 423.1. This paragraph takes effect on July 1 of
-101-1the fiscal year in which the department receives the second
2certification that commodity organizations have collected
3twenty million dollars from state assessments for clean
4water during the preceding fiscal year as provided in section
5466B.55. This paragraph is repealed on the date that paragraph
6“d” takes effect.
7d. There is imposed a tax of six and three-eighths percent
8upon the sales price from the furnishing of services as defined
9in section 423.1. This paragraph takes effect on July 1 of
10the fiscal year in which the department receives the third
11certification that commodity organizations have collected
12twenty million dollars from state assessments for clean
13water during the preceding fiscal year as provided in section
14466B.55.
157. a. (1) A tax of six percent is imposed upon the sales
16price from the sales, furnishing, or service of solid waste
17collection and disposal service. This subparagraph is repealed
18on the date that subparagraph (2) takes effect.
19(2) A tax of six and one-eighth percent is imposed upon the
20sales price from the sales, furnishing, or service of solid
21waste collection and disposal service. This subparagraph takes
22effect on July 1 of the fiscal year in which the department
23receives the first certification that commodity organizations
24have collected twenty million dollars from state assessments
25for clean water during the preceding fiscal year as provided
26in section 466B.55. This subparagraph is repealed on the date
27that subparagraph (3) takes effect.
28(3) A tax of six and two-eighths percent is imposed upon
29the sales price from the sales, furnishing, or service of solid
30waste collection and disposal service. This subparagraph takes
31effect on July 1 of the fiscal year in which the department
32receives the second certification that commodity organizations
33have collected twenty million dollars from state assessments
34for clean water during the preceding fiscal year as provided
35in section 466B.55. This subparagraph is repealed on the date
-102-1that subparagraph (4) takes effect.
2(4) A tax of six and three-eighths percent is imposed upon
3the sales price from the sales, furnishing, or service of solid
4waste collection and disposal service. This subparagraph takes
5effect on July 1 of the fiscal year in which the department
6receives the third certification that commodity organizations
7have collected twenty million dollars from state assessments
8for clean water during the preceding fiscal year as provided
9in section 466B.55.
10b. (1) For purposes of this subsection, “solid waste” means
11garbage, refuse, sludge from a water supply treatment plant
12or air contaminant treatment facility, and other discarded
13waste materials and sludges, in solid, semisolid, liquid,
14or contained gaseous form, resulting from nonresidential
15commercial operations, but does not include auto hulks; street
16sweepings; ash; construction debris; mining waste; trees;
17tires; lead acid batteries; used oil; hazardous waste; animal
18waste used as fertilizer; earthen fill, boulders, or rock;
19foundry sand used for daily cover at a sanitary landfill;
20sewage sludge; solid or dissolved material in domestic
21sewage or other common pollutants in water resources, such as
22silt, dissolved or suspended solids in industrial wastewater
23effluents or discharges which are point sources subject to
24permits under section 402 of the federal Water Pollution
25Control Act, or dissolved materials in irrigation return flows;
26or source, special nuclear, or by-product material defined by
27the federal Atomic Energy Act of 1954.
28(2) A recycling facility that separates or processes
29recyclable materials and that reduces the volume of the waste
30by at least eighty-five percent is exempt from the tax imposed
31by this subsection if the waste exempted is collected and
32disposed of separately from other solid waste.
33b. c. A person who transports solid waste generated by that
34person or another person without compensation shall pay the
35tax imposed by this subsection at the collection or disposal
-103-1facility based on the disposal charge or tipping fee. However,
2the costs of a service or portion of a service to collect and
3manage recyclable materials separated from solid waste by
4the waste generator are exempt from the tax imposed by this
5subsection.
68. a. (1) A tax of six percent is imposed on the sales
7price from sales of bundled transactions. For the purposes of
8this subsection, a “bundled transaction” is the retail sale of
9two or more distinct and identifiable products, except real
10property and services to real property, which are sold for one
11nonitemized price. A “bundled transaction” does not include
12the sale of any products in which the sales price varies, or
13is negotiable, based on the selection by the purchaser of the
14products included in the transaction. This subparagraph is
15repealed on the date that subparagraph (2) takes effect.
16(2) A tax of six and one-eighth percent is imposed on
17the sales price from sales of bundled transactions. This
18subparagraph (2) takes effect on July 1 of the fiscal year in
19which the department receives the first certification that
20commodity organizations have collected twenty million dollars
21from state assessments for clean water during the preceding
22fiscal year as provided in section 466B.55. This subparagraph
23is repealed on the date that subparagraph (3) takes effect.
24(3) A tax of six and two-eighths percent is imposed on
25the sales price from sales of bundled transactions. This
26subparagraph takes effect on July 1 of the fiscal year in which
27the department receives the second certification that commodity
28organizations have collected twenty million dollars from state
29assessments for clean water during the preceding fiscal year as
30provided in section 466B.55. This subparagraph is repealed on
31the date that subparagraph (4) takes effect.
32(4) A tax of six and three-eighths percent is imposed on
33the sales price from sales of bundled transactions. This
34subparagraph takes effect on July 1 of the fiscal year in which
35the department receives the third certification that commodity
-104-1organizations have collected twenty million dollars from state
2assessments for clean water during the preceding fiscal year
3as provided in section 466B.55.
4b. For the purposes of this subsection, a “bundled
5transaction” is the retail sale of two or more distinct and
6identifiable products, except real property and services to
7real property, which are sold for one nonitemized price. A
8“bundled transaction” does not include the sale of any products
9in which the sales price varies, or is negotiable, based on
10the selection by the purchaser of the products included in the
11transaction.
12b. c. “Distinct and identifiable products” does not include
13any of the following:
14(1) Packaging or other materials that accompany the retail
15sale of the products and that are incidental or immaterial to
16the retail sale of the products.
17(2) A product Products provided free of charge with the
18required purchase of another product. A product is “provided
19free of charge” if the sales price of the product purchased does
20not vary depending on the inclusion of the product which is
21provided free of charge.
22(3) Items included in the definition of “sales price”
23pursuant to section 423.1.
24c. d. “One nonitemized price” does not include a price that
25is separately identified by product on binding sales or other
26supporting sales-related documentation made available to the
27customer in paper or electronic form.
28d. e. A transaction that otherwise meets the definition of
29“bundled transaction” as defined in this subsection is not a
30bundled transaction if it is any of the following:
31(1) The retail sale of tangible personal property or a
32 specified digital product and a service, where the tangible
33personal property or specified digital product is essential
34to the use of the service, and is provided exclusively in
35connection with the service, and the true object of the
-105-1transaction is the service.
2(2) The retail sale of services where one service is
3provided that is essential to the use or receipt of a second
4service, and the first service is provided exclusively in
5connection with the second service, and the true object of the
6transaction is the second service.
7(3) (a) A transaction that includes taxable products and
8nontaxable products and the purchase price or sales price of
9the taxable products is de minimis.
10(b) For purposes of this subparagraph, “de minimis” means
11the seller’s purchase or sales price of the taxable products is
12ten percent or less of the total purchase price or sales price
13of the bundled products. Sellers A seller shall use either the
14purchase price or the sale price of the products to determine
15if the taxable products are de minimis. Sellers may A seller
16shall not use a combination of the purchase price and sales
17price of the products to determine if the taxable products are
18de minimis.
19(4) The retail sale of exempt tangible personal property and
20taxable tangible personal property where all of the following
21apply:
22(a) The transaction includes food and or food ingredients,
23drugs, durable medical equipment, mobility enhancing equipment,
24prosthetic devices, or medical supplies.
25(b) The seller’s purchase price or sales price of the
26taxable tangible personal property is fifty percent or less
27of the total purchase price or sales price of the bundled
28tangible personal property. Sellers may A seller shall not
29use a combination of the purchase price and sales price of
30the tangible personal property when making the fifty percent
31determination for a transaction.
329. a. (1) A tax of six percent is imposed upon the sales
33price from any mobile telecommunications service, including all
34paging services, that this state is allowed to tax pursuant
35to the provisions of the federal Mobile Telecommunications
-106-1Sourcing Act, Pub.L. No.106-252, 4 U.S.C. §116 et seq. This
2subparagraph is repealed on the date that subparagraph (2)
3takes effect.
4(2) A tax of six and one-eighth percent is imposed upon
5the sales price from any mobile telecommunications service,
6including all paging services, that this state is allowed
7to tax pursuant to the provisions of the federal Mobile
8Telecommunications Sourcing Act, Pub.L. No.106-252, 4 U.S.C.
9§116 et seq. This subparagraph takes effect on July 1 of
10the fiscal year in which the department receives the first
11certification that commodity organizations have collected
12twenty million dollars from state assessments for clean
13water during the preceding fiscal year as provided in section
14466B.55. This subparagraph is repealed on the date that
15subparagraph (3) takes effect.
16(3) A tax of six and two-eighths percent is imposed upon
17the sales price from any mobile telecommunications service,
18including all paging services, that this state is allowed
19to tax pursuant to the provisions of the federal Mobile
20Telecommunications Sourcing Act, Pub.L. No.106-252, 4 U.S.C.
21§116 et seq. This subparagraph takes effect on July 1 of
22the fiscal year in which the department receives the second
23certification that commodity organizations have collected
24twenty million dollars from state assessments for clean
25water during the preceding fiscal year as provided in section
26466B.55. This subparagraph is repealed on the date that
27subparagraph (4) takes effect.
28(4) A tax of six and three-eighths percent is imposed upon
29the sales price from any mobile telecommunications service,
30including all paging services, that this state is allowed
31to tax pursuant to the provisions of the federal Mobile
32Telecommunications Sourcing Act, Pub.L. No.106-252, 4 U.S.C.
33§116 et seq. This subparagraph takes effect on July 1 of
34the fiscal year in which the department receives the third
35certification that commodity organizations have collected
-107-1twenty million dollars from state assessments for clean
2water during the preceding fiscal year as provided in section
3466B.55.
4b. For purposes of this subsection, taxes on mobile
5telecommunications service, as defined under the federal Mobile
6Telecommunications Sourcing Act that are deemed to be provided
7by the customer’s home service provider, shall be paid to
8the taxing jurisdiction whose territorial limits encompass
9the customer’s place of primary use, regardless of where the
10mobile telecommunications service originates, terminates,
11or passes through and shall in all other respects be taxed
12in conformity with the federal Mobile Telecommunications
13Sourcing Act. All other provisions of the federal Mobile
14Telecommunications Sourcing Act are adopted by the state of
15Iowa and incorporated into this subsection by reference. With
16respect to mobile telecommunications service under the federal
17Mobile Telecommunications Sourcing Act, the director shall, if
18requested, enter into agreements consistent with the provisions
19of the federal Act.
2010. a. (1) A tax of six percent is imposed on the
21sales price of specified digital products sold at retail in
22the state. This subparagraph is repealed on the date that
23subparagraph (2) takes effect.
24(2) A tax of six and one-eighth percent is imposed upon the
25sales price of specified digital products sold at retail in the
26state. This subparagraph takes effect on July 1 of the fiscal
27year in which the department receives the first certification
28that commodity organizations have collected twenty million
29dollars from state assessments for clean water during the
30preceding fiscal year as provided in section 466B.55. This
31subparagraph is repealed on the date that subparagraph (3)
32takes effect.
33(3) A tax of six and two-eighths percent is imposed upon the
34sales price of specified digital products sold at retail in the
35state. This subparagraph takes effect on July 1 of the fiscal
-108-1year in which the department receives the second certification
2that commodity organizations have collected twenty million
3dollars from state assessments for clean water during the
4preceding fiscal year as provided in section 466B.55. This
5subparagraph is repealed on the date that subparagraph (4)
6takes effect.
7(4) A tax of six and three-eighths percent is imposed upon
8the sales price of specified digital products sold at retail
9in the state. This subparagraph takes effect on July 1 of
10the fiscal year in which the department receives the third
11certification that commodity organizations have collected
12twenty million dollars from state assessments for clean
13water during the preceding fiscal year as provided in section
14466B.55.
15b. The tax applies whether the purchaser obtains permanent
16use or less than permanent use of the specified digital
17product, whether the sale is conditioned or not conditioned
18upon continued payment from the purchaser, and whether the sale
19is on a subscription basis or is not on a subscription basis.
20b. c. The sale of a digital code that may be used to obtain
21or access a specified digital product shall be taxed in the
22same manner as the specified digital product. For purposes
23of this paragraph, “digital code” means a method that permits
24a purchaser to obtain or access at a later date a specified
25digital product.
2612. a. The sales tax rate of six percent is reduced to five
27percent on January 1, 2051.
28b. Notwithstanding paragraph “a”, the following apply:
29(1) If the sales tax rate is six and one-eighth percent,
30the sales tax rate is reduced to five and one-eighth percent
31on January 1, 2051.
32(2) If the sales tax rate is six and two-eighths percent,
33the sales tax rate is reduced to five and two-eighths percent
34on January 1, 2051.
35(3) If the sales tax rate is six and three-eighths percent,
-109-1the sales tax rate is reduced to five and three-eighths percent
2on January 1, 2051.
3 Sec. 105. Section 423.5, Code 2022, is amended to read as
4follows:
5423.5 Imposition of tax.
61. Except as provided in paragraph “b”, an excise tax at the
7rate of six percent of the purchase price or installed purchase
8price is imposed on the following:
91. a. (1) The Except as provided in subsection 2, an
10excise tax of six percent of the purchase price is imposed on
11the use in this state of tangible personal property as defined
12in section 423.1, including aircraft subject to registration
13under section 328.20, purchased for use in this state. This
14subparagraph is repealed on the date that subparagraph (2)
15takes effect.
16(2) Except as provided in subsection 2, an excise tax of six
17and one-eighth percent of the purchase price is imposed upon
18the use in this state of tangible personal property as defined
19in section 423.1, including aircraft subject to registration
20under section 328.20, purchased for use in this state. This
21subparagraph takes effect on July 1 of the fiscal year in which
22the department receives the first certification that commodity
23organizations have collected twenty million dollars from state
24assessments for clean water during the preceding fiscal year as
25provided in section 466B.55. This subparagraph is repealed on
26the date that subparagraph (3) takes effect.
27(3) Except as provided in subsection 2, an excise tax of six
28and two-eighths percent of the purchase price is imposed upon
29the use in this state of tangible personal property as defined
30in section 423.1, including aircraft subject to registration
31under section 328.20, purchased for use in this state. This
32subparagraph takes effect on July 1 of the fiscal year in which
33the department receives the second certification that commodity
34organizations have collected twenty million dollars from state
35assessments for clean water during the preceding fiscal year as
-110-1provided in section 466B.55. This subparagraph is repealed on
2the date that subparagraph (4) takes effect.
3(4) Except as provided in subsection 2, an excise tax of six
4and three-eighths percent of the purchase price is imposed on
5the use in this state of tangible personal property as defined
6in section 423.1, including aircraft subject to registration
7under section 328.20, purchased for use in this state. This
8subparagraph takes effect on July 1 of the fiscal year in which
9the department receives the third certification that commodity
10organizations have collected twenty million dollars from state
11assessments for clean water during the preceding fiscal year
12as provided in section 466B.55.
13b. For the purposes of this subchapter, the furnishing
14or use of the following services is also treated as the use
15of tangible personal property: optional service or warranty
16contracts, except residential service contracts regulated under
17chapter 523C, vulcanizing, recapping, or retreading services,
18engraving, printing, or binding services, and communication
19service when furnished or delivered to consumers or users
20within this state.
21b. 2. An excise tax at the rate of five percent is imposed
22on the use of vehicles subject only to the issuance of a
23certificate of title and the use of manufactured housing, and
24on the use of leased vehicles, if the lease transaction does
25not require titling or registration of the vehicle, on the
26amount subject to tax as calculated pursuant to section 423.26,
27subsection 2.
28c. 3. a. Purchases An excise tax at the rate of six
29percent is imposed on the use of tangible personal property
30or specified digital products made from the government of the
31United States or any of its agencies by ultimate consumers
32shall be subject to the tax imposed by this section. Services
33purchased from the same source or sources shall be subject to
34the service tax imposed by this subchapter and apply to the
35user of the services. This paragraph is repealed on the date
-111-1that paragraph “b” takes effect.
2b. An excise tax at the rate of six and one-eighth percent
3is imposed on the use of tangible personal property or
4specified digital products made from the government of the
5United States or any of its agencies by ultimate consumers
6shall be subject to the tax imposed by this section. Services
7purchased from the same source or sources shall be subject to
8the service tax imposed by this subchapter and apply to the
9user of the services. This paragraph takes effect on July 1
10of the fiscal year in which the department receives the first
11certification that commodity organizations have collected
12twenty million dollars from the state assessments for clean
13water during the preceding fiscal year as provided in section
14466B.55. This paragraph is repealed on the date that paragraph
15“c” takes effect.
16c. An excise tax at the rate of six and two-eighths
17percent is imposed on the use of tangible personal property
18or specified digital products made from the government of the
19United States or any of its agencies by ultimate consumers
20shall be subject to the tax imposed by this section. Services
21purchased from the same source or sources shall be subject to
22the service tax imposed by this subchapter and apply to the
23user of the services. This paragraph takes effect on July 1
24of the fiscal year in which the department receives the first
25certification that commodity organizations have collected
26twenty million dollars from the state assessments for clean
27water during the preceding fiscal year as provided in section
28466B.55. This paragraph is repealed on the date that paragraph
29“d” takes effect.
30d. An excise tax at the rate of six and three-eighths
31percent is imposed on the use of tangible personal property
32or specified digital products made from the government of the
33United States or any of its agencies by ultimate consumers
34shall be subject to the tax imposed by this section. Services
35purchased from the same source or sources shall be subject to
-112-1the service tax imposed by this subchapter and apply to the
2user of the services. This paragraph takes effect on July 1
3of the fiscal year in which the department receives the first
4certification that commodity organizations have collected
5twenty million dollars from the state assessments for clean
6water during the preceding fiscal year as provided in section
7466B.55.
8d. 4. a. (1) The An excise tax at the rate of six percent
9is imposed on the use in this state of services enumerated in
10section 423.2. This subparagraph is repealed on the date that
11subparagraph (2) takes effect.
12(2) An excise tax of six and one-eighth percent of the
13purchase price is imposed on the use in this state of services
14enumerated in section 423.2. This subparagraph takes effect
15on July 1 of the fiscal year in which the department receives
16the first certification that commodity organizations have
17collected twenty million dollars from state assessments for
18clean water during the preceding fiscal year as provided in
19section 466B.55. This subparagraph is repealed on the date
20that subparagraph (3) takes effect.
21(3) An excise tax of six and two-eighths percent of the
22purchase price is imposed on the use in this state of services
23enumerated in section 423.2. This subparagraph takes effect
24on July 1 of the fiscal year in which the department receives
25the second certification that commodity organizations have
26collected twenty million dollars from state assessments for
27clean water during the preceding fiscal year as provided in
28section 466B.55. This subparagraph is repealed on the date
29that subparagraph (4) takes effect.
30(4) An excise tax of six and three-eighths percent of the
31purchase price is imposed on the use in this state of services
32enumerated in section 423.2. This subparagraph takes effect
33on July 1 of the fiscal year in which the department receives
34the third certification that commodity organizations have
35collected twenty million dollars from state assessments for
-113-1clean water during the preceding fiscal year as provided in
2section 466B.55.
3b. This The tax described in paragraph “a” is applicable
4where the service is first used in this state.
5e. 5. a. (1) The An excise tax at the rate of six percent
6is imposed on the use in this state of specified digital
7products. This subparagraph is repealed on the date that
8subparagraph (2) takes effect.
9(2) An excise tax at the rate of six and one-eighth
10percent is imposed on the use in this state of specified
11digital products. This subparagraph takes effect on July 1
12of the fiscal year in which the department receives the first
13certification that commodity organizations have collected
14twenty million dollars from the state assessments for clean
15water during the preceding fiscal year as provided in section
16466B.55. This subparagraph is repealed on the date that
17subparagraph (3) takes effect.
18(3) An excise tax at the rate of six and two-eighths
19percent is imposed on the use in this state of specified
20digital products. This subparagraph takes effect on July 1 of
21the fiscal year in which the department receives the second
22certification that commodity organizations have collected
23twenty million dollars from the state assessments for clean
24water during the preceding fiscal year as provided in section
25466B.55. This subparagraph is repealed on the date that
26subparagraph (4) takes effect.
27(4) An excise tax at the rate of six and three-eighths
28percent is imposed on the use in this state of specified
29digital products. This subparagraph takes effect on July 1
30of the fiscal year in which the department receives the third
31certification that commodity organizations have collected
32twenty million dollars from the state assessments for clean
33water during the preceding fiscal year as provided in section
34466B.55.
35b. (1) The tax described in paragraph “a” applies whether
-114-1the purchaser obtains permanent use or less than permanent
2use of the specified digital product, whether the use is
3conditioned or not conditioned upon continued payment from the
4purchaser, and whether the use is on a subscription basis or
5is not on a subscription basis.
6(2) The use of a digital code that may be used to obtain
7or access a specified digital product shall be taxed in the
8same manner as the specified digital product. For purposes of
9this subparagraph, “digital code” means the same as defined in
10section 423.2, subsection 10.
112. 6. The excise tax is imposed upon every person using
12the property within this state until the tax has been paid
13directly to the county treasurer, the state department of
14transportation, a retailer, or the department. This tax is
15imposed on every person using the services or the product of
16the services in this state until the user has paid the tax
17either to an Iowa use tax permit holder or to the department.
183. 7. For the purpose of the proper administration of the
19use tax and to prevent its evasion, evidence that tangible
20personal property or specified digital products were sold by
21any person for delivery in this state shall be prima facie
22evidence that such tangible personal property or specified
23digital products were sold for use in this state.
244. 8. a. The use tax rate of six percent is reduced to
25five percent on January 1, 2051.
26b. Notwithstanding paragraph “a”, the following apply:
27(1) If the use tax rate is six and one-eighth percent, the
28sales tax rate is reduced to five and one-eighth percent on
29January 1, 2051.
30(2) If the use tax rate is six and two-eighths percent, the
31sales tax rate is reduced to five and two-eighths percent on
32January 1, 2051.
33(3) If the use tax rate is six and three-eighths percent,
34the sales tax rate is reduced to five and three-eighths percent
35on January 1, 2051.
-115-1 Sec. 106. Section 423.14A, subsection 1, paragraph b,
2subparagraph (3), Code 2022, is amended to read as follows:
3(3) A person who is not required to collect and remit
4automobile rental excise tax pursuant to section 423C.3,
5subsection 3, shall not be considered a “marketplace
6facilitator” with respect to any sale of a transportation
7service under section 423.2, subsection 6, paragraph “bf”, or
8section 423.5, subsection 1, paragraph “d” 4, consisting of the
9rental of vehicles subject to registration which are registered
10for a gross weight of thirteen tons or less for a period of
11sixty days or less.
12 Sec. 107. Section 423.43, subsection 1, paragraph b, Code
132022, is amended to read as follows:
14b. Subsequent to the deposit into the general fund of the
15state and after the transfer of such revenues collected under
16chapter 423B, the department shall transfer one-sixth all of
17the following:
18(1) If the department receives the first certification
19described in section 423.5, revenues equaling one-eighth of
20one percent of the tax imposed by that section to the natural
21resources and outdoor recreation trust fund created in section
22461.31.
23(2) If the department receives the second certification
24described in section 423.5, revenues equaling two-eighths
25of one percent of the tax imposed by that section shall be
26transferred to the natural resources and outdoor recreation
27trust fund created in section 461.31.
28(3) If the department receives the third certification
29described in section 423.5, revenues equaling three-eighths of
30one percent of the tax imposed by that section to the natural
31resources and outdoor recreation trust fund created in section
32461.31.
33(4) (a) One-sixthof such remaining revenues to the secure
34an advanced vision for education fund created in section
35423F.2.
-116- 1(b) This paragraph subparagraph is repealed January 1,
22051.
3 Sec. 108. Section 423C.3, subsection 3, paragraph c, Code
42022, is amended to read as follows:
5c. The only sales the person and affiliates of the person
6facilitate that are subject to tax under chapter 423 are sales
7of a transportation service under section 423.2, subsection 6,
8paragraph “bf”, or section 423.5, subsection 1, paragraph “d” 4,
9consisting of the rental of vehicles subject to registration
10which are registered for a gross weight of thirteen tons or
11less for a period of sixty days or less.
12 Sec. 109. Section 423C.3, subsection 4, Code 2022, is
13amended to read as follows:
144. For any rental transaction for which a person is
15required to or elects to collect and remit the tax under this
16chapter, the person shall also be liable for the collection
17and remittance of any sales or use tax due on that transaction
18under section 423.2, subsection 6, paragraph “bf”, or section
19423.5, subsection 1, paragraph “d” 4, notwithstanding any other
20provision to the contrary in chapter 423.
21 Sec. 110. NEW SECTION. 461.31A Allocation of trust fund
22moneys to the clean water fund.
23On or after July 1 of each fiscal year and prior to any
24allocations to a trust fund account, an amount shall be
25transferred to the general account of the clean water fund
26created in section 466B.51. The transferred amount shall equal
27the amount credited to the assessment account of the clean
28water fund during prior fiscal years.
29 Sec. 111. Section 461.32, subsection 1, Code 2022, is
30amended to read as follows:
311. A natural resources account is created in the trust
32fund. Twenty-three After the transfer has been made from the
33trust fund to the clean water fund pursuant to section 461.31A,
34twenty-three percent of the remaining moneys credited to the
35trust fund shall be allocated to the trust fund’s natural
-117-1resources account.
2 Sec. 112. Section 461.33, subsection 1, Code 2022, is
3amended to read as follows:
41. A soil conservation and water protection account is
5created in the trust fund. Twenty After the transfer has been
6made from the trust fund to the clean water fund pursuant
7to section 461.31A, twenty percent of the remaining moneys
8credited to the trust fund shall be allocated to the trust
9fund’s soil conservation and water protection account.
10 Sec. 113. Section 461.34, subsection 1, Code 2022, is
11amended to read as follows:
121. A watershed protection account is created in the trust
13fund. Fourteen After the transfer has been made from the trust
14fund to the clean water fund pursuant to section 461.31A,
15fourteen percent of the remaining moneys credited to the
16trust fund shall be allocated to the trust fund’s watershed
17protection account.
18 Sec. 114. Section 461.35, Code 2022, is amended to read as
19follows:
20461.35 Iowa resources enhancement and protection fund —
21allocation.
22Thirteen After the transfer has been made from the trust
23fund to the clean water fund pursuant to section 461.31A,
24thirteen percent of the remaining moneys credited to the trust
25fund shall be allocated to the Iowa resources enhancement
26and protection fund created in section 455A.18 for further
27allocation as provided in section 455A.19.
28 Sec. 115. Section 461.36, subsection 1, Code 2022, is
29amended to read as follows:
301. A local conservation partnership account is created in
31the trust fund. Thirteen After the transfer from the trust
32fund has been made to the clean water fund pursuant to section
33461.31A, thirteen percent of the remaining moneys credited to
34the trust fund shall be allocated to the trust fund’s local
35conservation partnership account.
-118-1 Sec. 116. Section 461.37, subsection 1, Code 2022, is
2amended to read as follows:
31. A trails account is created in the trust fund. Ten After
4the transfer from the trust fund has been made to the clean
5water fund pursuant to section 461.31A, ten percent of the
6remaining moneys credited to the trust fund shall be allocated
7to the trust fund’s trails account.
8 Sec. 117. Section 461.38, subsection 1, Code 2022, is
9amended to read as follows:
101. A lake restoration account is created in the trust fund.
11Seven After the transfer from the trust fund has been made to
12the clean water fund pursuant to section 461.31A, ten percent
13of the remaining moneys credited to the trust fund shall be
14allocated to the account.
15 Sec. 118. Section 466B.2, Code 2022, is amended by adding
16the following new subsection:
17 NEW SUBSECTION. 01. “Commission” means the clean water
18commission created in section 466B.52.
19 Sec. 119. Section 466B.3, subsections 1 and 2, Code 2022,
20are amended to read as follows:
211. Council established. A water resources coordinating
22council is established within the department of agriculture
23and land stewardship. The council shall carry out the
24powers and duties described in this section in accordance
25with the policies and under the direction and supervision of
26the commission. The council shall advise the commission as
27required by the commission.
282. Purpose. The purpose of the council shall be to advise
29the commission regarding strategies and methods to preserve
30and protect Iowa’s water resources, and to coordinate the
31management of those resources in a sustainable and fiscally
32responsible manner. In the pursuit of this purpose providing
33advice to the commission and acting in accordance with its
34policies, and under its direction and supervision, the
35council shall use an integrated approach to water resource
-119-1management, recognizing that insufficiencies exist in current
2approaches and practices, as well as in funding sources and
3the utilization of funds. The integrated approach used by the
4council shall attempt to overcome old categories, labels, and
5obstacles with the primary goal of managing the state’s water
6resources comprehensively rather than compartmentally.
7 Sec. 120. Section 466B.3, subsection 3, unnumbered
8paragraph 1, Code 2022, is amended to read as follows:
9The success of the council’s efforts made under this
10subchapter shall ultimately be measured by the following
11outcomes:
12 Sec. 121. Section 466B.3, subsection 6, paragraph c, Code
132022, is amended to read as follows:
14c. The council, acting in accordance with the policies and
15under the direction and supervision of the commission, shall
16develop recommendations for policies and funding promoting a
17watershed management approach to reduce the adverse impact
18of future flooding on this state’s residents, businesses,
19communities, and soil and water quality. The council and
20commission shall consider policies and funding options for
21various strategies to reduce the impact of flooding including
22but not limited to additional floodplain regulation; wetland
23protection, restoration, and construction; the promulgation
24and implementation of statewide storm water management
25standards; conservation easements and other land management;
26perennial ground cover and other agricultural conservation
27practices; pervious pavement, bioswales, and other urban
28conservation practices; and permanent or temporary water
29retention structures. In developing recommendations, the
30council and commission shall consult with hydrological and land
31use experts, representatives of cities, counties, drainage and
32levee districts, agricultural interests, and soil and water
33conservation districts, and other urban and regional planning
34experts.
35 Sec. 122. Section 466B.31, subsection 1, Code 2022, is
-120-1amended to read as follows:
21. a. A watershed planning advisory council is established
3for purposes of assembling a diverse group of stakeholders
4to review research and make recommendations to various state
5entities regarding methods to protect water resources in the
6state, assure an adequate supply of water, mitigate and prevent
7floods, and coordinate the management of those resources in
8a sustainable, fiscally responsible, and environmentally
9responsible manner.
10b. The council shall carry out the powers and duties
11described in this section in accordance with the policies
12and under the direction and supervision of the commission.
13The council shall advise the commission as required by the
14commission.
15c. The advisory commission shall supervise the council may
16seek in seeking input from councils of governments or other
17organizations in the development of its recommendations. The
18advisory council shall meet once a year and at other times as
19deemed necessary to meet the requirements of this section.
20The advisory council may appoint a task force to assist the
21advisory council in completing its duties.
22 Sec. 123. Section 466B.31, subsection 3, unnumbered
23paragraph 1, Code 2022, is amended to read as follows:
24By December 1 of each year, the watershed planning advisory
25council with approval by the commission shall submit a report
26to the governor, the general assembly, the department of
27agriculture and land stewardship, the department of natural
28resources, and the water resources coordinating council. The
29report shall include recommendations regarding all of the
30following:
31 Sec. 124. Section 466B.42, Code 2022, is amended to read as
32follows:
33466B.42 Water quality initiative.
34The division shall establish a A water quality initiative
35is established in order to assess and reduce nutrients in
-121-1this state’s watersheds, including subwatersheds and regional
2watersheds, and for implementing its responsibilities under
3the Iowa nutrient reduction strategy. The division commission
4 shall establish oversee and the division, acting in accordance
5with the policies and under the direction and supervision of
6the commission, shall administer the water quality initiative
7and advise the commission as required by the commission. As
8part of the initiative, the division shall administer projects
9to reduce nutrients in surface waters from nonpoint sources
10in a scientific, reasonable, and cost-effective manner. The
11division shall utilize a pragmatic, strategic, and coordinated
12approach with the goal of accomplishing reductions over time.
13To evaluate the progress achieved over time toward the goals
14of the Iowa nutrient reduction strategy and the United States
15environmental protection agency gulf hypoxia action plan, the
16baseline condition shall be calculated for the time period from
171980 to 1996.
18 Sec. 125. NEW SECTION. 466B.51 Clean water fund.
191. A clean water fund is created in the state treasury
20under the management and control of the clean water commission.
21The clean water fund is composed of a general account, an
22assessment account, and an expenditures account.
232. The clean water fund’s general account includes moneys
24transferred from the natural resources and outdoor recreation
25trust fund pursuant to section 461.31A, moneys appropriated
26to the general account from the general assembly, and other
27moneys available to and obtained or accepted by the commission,
28including moneys from public or private sources. However, the
29general account shall not include moneys transferred from a
30commodity organization as described in subsection 3. Except as
31provided in subsection 3, all moneys received by the commission
32for deposit into the clean water fund shall be credited to the
33general account.
343. The clean water fund’s assessment account includes the
35following moneys collected and transferred to the account from
-122-1the following commodity organizations:
2a. The Iowa dairy industry commission as established in
3chapter 179 or the Iowa state dairy association as recognized
4in that chapter, which shall transfer moneys collected from the
5state assessment for clean water as provided in that chapter,
6including section 179.5.
7b. The Iowa beef cattle producers association as established
8in chapter 181 which shall transfer moneys from the state
9assessment as provided in that chapter, including section
10181.13.
11c. The Iowa sheep and wool promotion board established
12pursuant to chapter 182 which shall transfer moneys from the
13state assessment as provided in that chapter, including section
14182.18.
15d. The Iowa pork producers council as established in chapter
16183A, or the Iowa pork producers association as recognized
17in that chapter, which shall transfer moneys from the state
18assessment as provided in that chapter, including section
19183A.7.
20e. The Iowa egg council as established in chapter 184 which
21shall transfer moneys from the state assessment as provided in
22that chapter, including section 184.13.
23f. The Iowa turkey marketing council as established in
24chapter 184A which shall transfer moneys from the state
25assessment as provided in that chapter, including section
26184A.4.
27g. The Iowa soybean association as recognized in chapter
28185 which shall transfer moneys from the state assessment as
29provided in that chapter, including section 185.26.
30h. The Iowa corn promotion board as established in chapter
31185C which shall transfer moneys from the state assessment as
32provided in that chapter, including section 185C.26.
334. The clean water fund’s expenditures account only
34includes moneys transferred from the general account and the
35state assessment account as provided in this section.
-123- 15. a. Moneys in the clean water fund shall not be used for
2any purpose other than described in this section.
3b. Moneys in the general account shall not be used for any
4purpose other than for transfer to the expenditures account.
5c. Moneys in the assessment account shall not be used for
6any purpose other than to do the following:
7(1) Pay administrative expenses which are limited to all of
8the following:
9(a) Reimbursing the department of agriculture and land
10stewardship or a commodity organization for all reasonable
11costs of conducting a referendum to determine if a state
12assessment for clean water is to be established, continued, or
13terminated. The division shall apply to the executive council
14if necessary to receive moneys required to pay for reasonable
15costs of conducting a referendum as provided in section 7D.10B.
16(b) Remitting refunds of moneys to persons who have paid a
17state assessment for clean water to a commodity organization,
18if the application for a refund has been approved by the
19commodity organization and submitted to the department as
20required by the division of soil conservation and water
21quality.
22(c) Paying reasonable expenses associated with the
23collection and transfer of moneys associated with the
24collection of the state assessment for clean water and the
25processing of refund applications associated with such
26collection.
27(d) Transfer remaining moneys to the expenditures account
28as provided in this section.
296. Moneys in the fund’s expenditures account are
30appropriated to the clean water commission to support programs
31and projects administered to improve the state’s watersheds
32and surface waters, including but not limited to projects
33associated with the water quality initiative established
34pursuant to section 466B.42. Moneys in the expenditures
35account shall be used to support soil conservation and
-124-1watershed protection, the installation of conservation
2practices, and watershed protection improvements as provided in
3chapters 161A, 161C, 461A, and 466. Moneys in the expenditures
4account shall also be used to support water quality programs
5and projects administered by the Iowa finance authority under
6chapter 16.
77. Notwithstanding section 8.33, moneys in the clean
8water fund shall not revert. Notwithstanding section 12C.7,
9subsection 2, interest or earnings on moneys in the fund shall
10be credited to the fund.
11 Sec. 126. NEW SECTION. 466B.52 Clean water commission —
12appointment and administration.
131. A clean water commission is created which shall be housed
14in the division of soil conservation and water quality of the
15department of agriculture and land stewardship.
162. The commission shall be comprised of nine voting members
17appointed by the governor.
183. The commission shall also be comprised of four
19legislative members who shall serve in a nonvoting, ex officio
20capacity. The legislative members shall include all of the
21following:
22a. Two members of the senate. One senator shall be
23appointed by the majority leader of the senate and one senator
24shall be appointed by the minority leader of the senate.
25b. Two members of the house of representatives. One
26member shall be appointed by the speaker of the house of
27representatives and one member shall be appointed by the
28minority leader of the house of representatives.
294. The commission shall also be comprised of persons
30appointed by commodity organizations described in section
31466B.51 who shall serve in a nonvoting, ex officio capacity.
32Each commodity organization may appoint one person if producers
33who are members of the commodity organization have approved
34the establishment of a state assessment for clean water to be
35transferred to the clean water fund created in section 466B.51.
-125- 15. Voting members shall serve four-year terms and may be
2reappointed. The initial terms of the voting members shall
3be staggered at the discretion of the governor. Nonvoting
4members shall serve at the pleasure of the persons or commodity
5organizations making their appointments.
66. Sections 69.16, 69.16A, and 69.19 apply to the
7voting members. The voting members are subject to senate
8confirmation.
97. a. A member, other than a legislative member, is
10eligible to receive compensation as provided in section 7E.6,
11and shall be reimbursed for actual and necessary expenses
12incurred in performance of the members’ duties. All expenses
13shall be paid from appropriations for such purposes and the
14commission shall be subject to the budget requirements of
15chapter 8.
16b. A legislative member serves for a term as provided in
17section 69.16B and is eligible for per diem and expenses as
18provided in section 2.10.
198. The commission shall meet in January of each year for the
20purpose of electing one of its voting members as chairperson.
219. The commission shall meet on a regular basis and at the
22call of the chairperson or upon the written request to the
23chairperson of five or more voting members. Written notice
24of the time and place of the meeting shall be given to each
25member.
2610. A majority of voting members constitutes a quorum,
27and the affirmative vote of a majority of the voting members
28is necessary for any action taken by the board, except that a
29lesser number may adjourn a meeting.
3011. Any vacancy in the membership of the commission shall
31be filled in the same manner as regular appointments are made
32for the unexpired portion of the regular term. A vacancy in
33the membership of the commission does not impair the rights of
34a quorum to exercise all rights and perform all duties of the
35commission.
-126- 112. A person shall not serve as a member of the commission
2if the person has an interest in a contract or job of work or
3material or the profits thereof or service to be performed
4for the department of agriculture and land stewardship or
5department of natural resources. Any member of the commission
6who accepts employment with or acquires any stock, bonds, or
7other interest in any company or corporation doing business
8with the department of agriculture and land stewardship or the
9department of natural resources shall be disqualified from
10remaining a member of the commission.
1113. The department of agriculture and land stewardship in
12cooperation with the department of natural resources shall
13assist the commission by doing all of the following:
14a. Providing the commission with necessary facilities,
15items, and clerical support.
16b. Performing administrative functions necessary for the
17management of the commission.
18 Sec. 127. NEW SECTION. 466B.53 Clean water commission —
19powers and duties.
201. The purpose of the clean water commission is to identify
21and finance methods to improve surface water quality, including
22by reducing contributing contaminant loads to receiving surface
23waters and reducing soil erosion and sediment loss.
242. In furthering the purpose set forth in subsection 1, the
25clean water commission shall do all of the following:
26a. Develop comprehensive water quality policies and plans
27that identify existing plans, programs, and projects. The
28commission shall use existing data and amend, augment, and
29consolidate existing plans or strategies which have improved or
30which promise to improve water quality.
31b. Identify additional water quality improvement needs on a
32watershed basis, including the need to develop new or innovate
33programs or projects.
34c. Measure the effectiveness and results of programs and
35projects according to performance measures and associated
-127-1benchmarks. The data demonstrating accountability collected by
2the department shall be made readily available and maintained
3in a computer-readable format.
43. The clean water commission shall establish objectives
5of programs described in subsection 2 to be achieved by
6dates identified by the commission which may include program
7timelines and milestones. The commission shall measure and
8monitor progress toward achieving program objectives.
94. The commission shall develop comprehensive water quality
10policies and plans that integrate existing plans, programs,
11and projects in accordance with the Iowa nutrient reduction
12strategy. The commission shall use existing data and amend,
13augment, and consolidate existing plans or strategies which
14have improved or which promise to improve water quality. The
15commission shall also develop new comprehensive water quality
16policies and plans that integrate existing plans, programs, and
17projects. The information collected by the department shall be
18made readily available and maintained in a computer-readable
19format.
205. The commission shall identify additional water quality
21improvement needs on a watershed basis, including the need to
22develop new or innovate programs or projects.
236. By October 1, 2024, and by October 1 of each year
24thereafter, the commission shall submit a report to the
25governor and the general assembly used to support the programs
26described in subsection 2. A report shall include all of the
27following:
28a. A description and update of the current status of water
29quality programs and associated projects, and the expenditure
30of moneys appropriated to support the programs and associated
31projects administered by state entities, including but not
32limited to the department of agriculture and land stewardship,
33the department of natural resources, Iowa state university
34of science and technology, the Iowa finance authority, and
35watershed management authorities.
-128- 1b. An evaluation of the successes and failures of a
2water quality program and any associated project in meeting
3the program’s objectives. The report shall include any
4legislative proposals to enact, amend, or repeal statutes and
5any administrative proposals to adopt, revise, or rescind
6administrative rules.
77. The Iowa finance authority, the department of natural
8resources, and the department of agriculture and land
9stewardship shall cooperate with the commission in providing
10the commission with all information necessary for the
11commission to carry out the provisions of this section.
12 Sec. 128. NEW SECTION. 466B.54 Clean water commission —
13report.
141. The clean water commission, in cooperation with the
15department of agriculture and land stewardship, the department
16of natural resources, and the Iowa finance authority shall
17prepare and submit a clean water evaluation and expenditure
18report to the governor and general assembly by January 15,
192024.
202. The clean water evaluation and expenditure report shall
21include all of the following:
22a. A description of current clean water programs and
23projects, and the expenditure of moneys appropriated to
24support those programs and projects. The report shall evaluate
25successes and failures of each program and project in meeting
26water quality objectives. The report may also recommend
27methods to improve the program.
28b. A plan for allocating moneys in the expenditures account
29of the clean water fund created in section 466B.51. The plan
30shall include a formula which takes into account the extent to
31which moneys may be used for all of the following:
32(1) Watersheds requiring immediate improved surface water
33quality.
34(2) The establishment of infrastructure, conservation
35measures, and practices that reduce contributing nutrient
-129-1loads, associated sediment, or contaminants from nonpoint
2sources to surface waters in a scientific, reasonable, and
3cost-effective manner.
4(3) The administration of programs or projects in a manner
5that is consistent with the Iowa nutrient reduction strategy.
6(4) The degree to which political subdivisions or
7stakeholders have demonstrated a willingness and have the
8resources to participate in programs or projects.
9(5) The degree to which clean water programs can attract
10additional funding from private and public sources including
11federal funding.
123. The clean water evaluation and expenditure report shall
13include a detailed plan for consolidating all water quality
14and soil conservation initiatives and programs and associated
15projects administered by the department of agriculture and
16land stewardship, the department of natural resources, and the
17Iowa finance authority under the overall supervision of the
18commission. The plan shall include any legislative proposals
19to enact, amend, or repeal statutes and any administrative
20proposals to adopt, revise, or rescind administrative rules.
214. This section is repealed July 1, 2024.
22 Sec. 129. NEW SECTION. 466B.55 Secretary of agriculture,
23treasurer of state, and auditor of state — certifications.
241. By March 1 of each fiscal year, the secretary of
25agriculture, the treasurer of state, and the auditor of state
26shall meet to certify that one or more commodity organizations
27are collecting a state assessment for clean water as described
28in section 466B.51. The secretary of agriculture shall prepare
29a certification for delivery to the Iowa administrative code
30editor for publication in the Iowa administrative bulletin.
312. By March 1 of each fiscal year, the secretary of
32agriculture, the treasurer of state, and the auditor of state
33shall together verify the total amount of moneys collected
34by all commodity organizations certified under subsection 1
35during the preceding fiscal year. If a commodity organization
-130-1was certified after the end of the preceding fiscal year, the
2commodity organization shall be deemed to have collected a
3state assessment for clean water at the rate in effect on the
4date of the commodity organization’s certification.
53. By April 1 of each fiscal year when the secretary of
6agriculture, the treasurer of state, and the auditor of state
7verify that during the preceding fiscal year twenty million
8dollars was collected by all commodity organizations under
9subsection 2, the secretary of agriculture shall prepare a
10certification for delivery to all of the following:
11a. The director of revenue.
12b. The administrative code editor who shall publish the
13certification in the Iowa administrative bulletin.
14c. The Iowa Code editor.
154. This section is repealed on July 1 of the fiscal year in
16which the secretary of agriculture prepares and delivers the
17third certification as required in subsection 3.
18DIVISION X
19ADMINISTRATION
20 Sec. 130. NAME CHANGE TO REFERENDUM FOR DIRECT USE. This
21Act does not require the department of agriculture and land
22stewardship or a commodity organization described in section
23466B.51, as enacted in this Act, to conduct a referendum
24because of this Act’s reference to a referendum as a referendum
25for direct use.
26EXPLANATION
27The inclusion of this explanation does not constitute agreement with
28the explanation’s substance by the members of the general assembly.
29This bill relates to agricultural commodity organizations
30representing producers of that commodity that are authorized
31to impose an excise tax or “assessment” (and commonly referred
32to as a “checkoff”) on the commodity when first sold by the
33producer to a first purchaser. The goal of the assessment
34is to fund promotional activities which involve market
35development, research, and education. The bill refers to this
-131-1tax as an assessment (or state assessment) for direct use.
2The commodity organizations include the Iowa dairy industry
3commission or Iowa state dairy association (Code chapter 179),
4Iowa beef cattle producers association (Code chapter 181), Iowa
5sheep and wool promotion board (Code chapter 182), Iowa pork
6producers council or Iowa pork producers association (Code
7chapter 183A), Iowa egg council (Code chapter 184), the Iowa
8turkey marketing council (Code chapter 184A), the Iowa soybean
9association (Code chapter 185), and the Iowa corn promotion
10board (Code chapter 185C). The bill requires a commodity
11organization to establish a separate tax referred to as a
12state assessment for clean water, if approved by a majority of
13its members at a referendum. The bill also requires certain
14commodity organizations to conduct a special referendum to
15increase the rate of the assessment for clean water. The rate
16of the state assessment for clean water is established by the
17governing body of the commodity organization not to exceed the
18assessment for direct use or national (federal) assessment or
19both. The referendum would be conducted in the same manner
20as an initial, special, or succeeding referendum conducted by
21the commodity organization under its specific Code chapter. A
22special state assessment for clean water if imposed could be
23continued or terminated in the same manner as the commodity
24organization’s assessment for direct use. Moneys from the
25state assessment for clean water would be collected by the
26commodity organization and transferred to a newly created clean
27water fund.
28The bill establishes a clean water commission housed in
29the division of soil conservation and water quality of the
30department of agriculture and land stewardship. The commission
31is composed of nine voting members appointed by the governor,
32four legislative members who serve in a nonvoting, ex officio
33capacity, and persons appointed by the commodity organizations,
34who also serve in a nonvoting, ex officio capacity.
35Appointments are contingent on the commodity organization
-132-1having approved the establishment of a state assessment for
2clean water to be transferred to the clean water fund. The
3purpose of the commission is to finance methods to improve
4surface water quality, including by reducing contributing
5contaminant loads to receiving surface waters and reducing soil
6erosion and sediment loss. The commission is responsible for
7overseeing the water quality initiative as administered by the
8division of soil conservation and water quality.
9Moneys collected from the state assessment for clean
10water are to be credited to the clean water fund which
11is under the supervision of the commission. The fund is
12composed of a general account, an assessment account, and an
13expenditures account. The fund’s general account includes
14moneys transferred from the constitutionally protected natural
15resources and outdoor recreation trust fund (Code section
16461.31), moneys appropriated by the general assembly, and other
17moneys available to and obtained or accepted by the commission.
18Moneys collected from the state assessment for clean water
19are to be credited to the assessment account. The bill also
20includes an expenditures account which only includes moneys
21transferred from the general account and the assessment account
22for purposes of financing methods to improve surface water
23quality. Moneys transferred from the assessment account are
24to be used to reimburse the department of agriculture and land
25stewardship or a commodity organization for reasonable costs
26of conducting a referendum to determine if a state assessment
27for clean water is to be established, continued, or terminated.
28The commission can also apply to the executive council for
29moneys required to pay for reasonable costs of conducting a
30referendum. Moneys deposited into the expenditures account
31may also be used to pay refunds to producers who have paid the
32state assessment for clean water if the refund application has
33been approved by the commodity organization.
34The bill provides for possible progressive increases
35in state sales and use taxes. An increased amount must be
-133-1credited to the natural resources and outdoor recreation trust
2fund according to a constitutional amendment (Article VII,
3section 10). The amount credited to the fund must be equal
4to the amount generated by an increase in the state sales tax
5rate occurring after the effective date of the constitutional
6amendment, not to exceed a rate of three-eighths of one percent
7(0.375). The state sales tax rate has not been increased since
8before November 2, 2010, the date when the constitutional
9amendment was ratified. The bill provides that an increase of
10one-eighth of one percent in the sales tax is triggered each
11of three fiscal years when the secretary of agriculture, the
12treasurer of state, and the auditor of state certify that a
13total of $20 million in state assessments for clean water was
14collected by participating commodity organizations during the
15preceding fiscal year. The bill revises the allocations from
16the natural resources and outdoor recreation trust fund as
17set forth in statute (Code chapter 461). On July 1 of each
18fiscal year, an amount of moneys in the Code chapter 461 trust
19fund equal to the amount in the clean water fund’s assessment
20account is to be transferred to the clean water fund’s general
21account. The moneys remaining in the Code chapter 461 trust
22fund are to be allocated on a percentage basis as set forth in
23statute.
24The commission, in cooperation with the department of
25agriculture and land stewardship, the department of natural
26resources, and the Iowa finance authority, must submit a
27report to the governor and general assembly by January 15,
282024, which includes a description of current clean water
29programs and projects and a detailed plan for consolidating all
30water quality and soil conservation initiatives and programs
31and associated projects administered by the department of
32agriculture and land stewardship, the department of natural
33resources, and the Iowa finance authority under the overall
34supervision of the commission.
-134-da/ns
2imposed on agricultural commodities, including procedures
3for referendums to establish, continue, or terminate the
4state assessment, the transfer of moneys to the department
5of agriculture and land stewardship, state sales and use
6taxes, the natural resources and outdoor recreation trust
7fund, the establishment of a commission and fund, and the
8appropriation of moneys.
9BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1DIVISION I
2IOWA DAIRY INDUSTRY COMMISSION AND
3IOWA STATE DAIRY ASSOCIATION
4 Section 1. Section 179.1, Code 2022, is amended by adding
5the following new subsections:
6 NEW SUBSECTION. 01. “Assessment” means an excise tax on the
7sale of milk which may include a state assessment for direct
8use and a state assessment for clean water.
9 NEW SUBSECTION. 2A. “Federal Act” means the Dairy
10Production Stabilization Act of 1983, 7 U.S.C. §4501 et seq.
11 NEW SUBSECTION. 3A. “National assessment” means an excise
12tax on the sale of milk imposed pursuant to the federal Act.
13 NEW SUBSECTION. 10. “Secretary” means the secretary of
14agriculture.
15 Sec. 2. Section 179.1, subsection 2, Code 2022, is amended
16to read as follows:
172. The term “commission” shall mean “Commission” means the
18Iowa dairy industry commission created in section 179.2.
19 Sec. 3. Section 179.2, subsections 4, 5, 6, and 7, Code
202022, are amended to read as follows:
214. When a national promotional order is established by the
22United States department of agriculture pursuant to the Dairy
23Product Stabilization Act of 1983 federal Act, collection of
24the excise tax state assessment for direct use described in
25section 179.5 shall be suspended for the period in which the
26national order is in effect. The commission shall continue to
27operate thereafter for only the period of time necessary to pay
28refunds and disburse the funds moneys remaining in the dairy
29industry fund for the purposes enumerated in administering
30 this chapter. Upon completion of these acts, the existence of
31the Iowa dairy industry commission shall be suspended. The
32secretary of agriculture shall certify the suspension of the
33commission as of a date certain to the Iowa dairy industry
34 commission and the Iowa state dairy association. When the
35existence of the commission is suspended, the terms of office
-1-1being served by individual commissioners shall terminate.
25. When the national promotional order expires, the period
3of suspension of the excise tax state assessment for direct use
4established in section 179.5 shall terminate and the secretary
5of agriculture shall take the steps necessary to collect that
6excise tax state assessment and otherwise fulfill the duties of
7the commission, except that of expending funds moneys collected
8under the excise tax that state assessment, until those
9duties can be resumed by the reactivated commission. When the
10national promotional order expires, the period of suspension of
11the commission shall terminate. The secretary of agriculture
12 shall call the first meeting of the reactivated commission.
13Upon reactivation, the commission shall reimburse the secretary
14of agriculture for expenses incurred in carrying out the duties
15provided in this subsection.
166. When the national dairy promotion program expires and
17the suspension of the Iowa dairy industry commission terminates
18pursuant to subsection 5, all first purchasers shall, in a
19manner designed to reflect their proportionate contributions
20to the national dairy promotion program in its most recently
21completed fiscal year, nominate two resident producers for each
22of the sixteen offices of the commission. The secretary of
23agriculture shall then appoint one nominee from each set of
24two nominees as commissioners of the reactivated Iowa dairy
25industry commission. The secretary of agriculture shall
26stagger the terms of the reactivated commission resulting in
27as nearly as possible one third of the commissioners serving
28for one year, one third of the commissioners serving for two
29years, and one third of the commissioners serving for three
30years. After the initial staggering of terms by the secretary,
31commissioners shall be appointed to three-year terms.
327. The establishment or expiration of a national
33promotional order shall not affect the imposition of a state
34assessment for clean water established pursuant to section
35179.13A.
-2- 17. 8. After the reactivated commission has been formed,
2nominations for commissioners shall be made by first
3purchasers in a manner designed to reflect their proportionate
4contributions to the Iowa dairy industry commission in its most
5recently completed fiscal year.
6 Sec. 4. Section 179.3, Code 2022, is amended by adding the
7following new subsection:
8 NEW SUBSECTION. 10. To cooperate with the division of soil
9conservation and water quality of the department of agriculture
10and land stewardship in transferring moneys collected from
11the state assessment for clean water to the clean water fund
12created in section 466B.51.
13 Sec. 5. Section 179.4, Code 2022, is amended to read as
14follows:
15179.4 Expenditure of funds Use of moneys.
16Funds collected through Moneys collected by the commission
17from the excise tax are to state assessment for direct use
18imposed pursuant to section 179.5 shall be used for purposes
19of advertising and promotion, product, process, and nutrition,
20dietetics, and physiology research, nutrition education, public
21relations, research and development, and for other activities
22that contribute to producer efficiency and productivity.
23In addition, the commission shall use these funds moneys
24 to maintain existing markets, to make contributions to
25organizations working toward the purposes of this section,
26and to assist in the development of new or enlarged markets
27for milk, both domestic and foreign. The primary purpose for
28use of these funds moneys is to increase consumption of milk.
29The commission may contract for advertising, publicity, sales
30promotion, research, and educational services the committee
31 commission deems appropriate to further the objectives of this
32section.
33 Sec. 6. Section 179.5, Code 2022, is amended to read as
34follows:
35179.5 Excise tax State assessments — administration of
-3-1moneys — appropriation.
21. a. There is levied and imposed an excise tax a state
3assessment for direct use on all producers within the state
4at a rate of three-fourths of one percent of the gross value
5of milk produced in the state and which may be continued by
6special referendum as provided in section 179.13A.
7b. There is imposed a state assessment for clean water on
8all producers within the state at a rate established by the
9commission not to exceed the rate of the state assessment for
10direct use described in paragraph “a”, if the state assessment
11for clean water is established or continued pursuant to section
12179.13A.
132. All taxes levied and The state assessment for direct use
14and the state assessment for clean water imposed under this
15chapter shall be deducted from the sales price received by the
16producer and shall be collected by the first purchaser, except
17as follows:
18a. If the producer produces milk from cows and sells the
19milk directly to the consumer, the taxes each state assessment
20 shall be remitted by that producer.
21b. If the producer sells milk to a first purchaser outside
22the state, the taxes are each state assessment is due and
23payable by that producer before the shipment is made, except
24that the commission may make agreements with extra state
25purchasers for the keeping of records and the collection of the
26taxes each state assessment as necessary to secure the payment
27of the taxes each state assessment within the time fixed by
28this chapter.
293. All taxes levied and The state assessment for direct use
30and the state assessment for clean water if established and
31 imposed under this chapter, and any other contributions made to
32the dairy industry commission, shall be paid to and collected
33by the commission within thirty days after the end of the month
34during which the milk was marketed.
354. The commission shall remit moneys collected from
-4-1 the taxes state assessment for direct use and any other
2contributions obtained by the commission to the treasurer of
3the state each quarter, and at the same time shall render to
4the director of the department of administrative services an
5itemized and verified report showing the source from which
6the taxes moneys collected from the state assessment for
7direct use and voluntary contributions were obtained. All
8taxes moneys collected from the state assessment for direct
9use and voluntary contributions received, collected, and
10remitted by the commission shall be placed in a special fund
11by the treasurer of state and the director of the department
12of administrative services, to be known as the “dairy industry
13fund” to be used by the Iowa dairy industry commission for
14the purposes set out in this chapter and to administer and
15enforce the laws relative to this chapter. The department of
16administrative services shall transfer moneys from the fund
17to the commission for deposit into an account established
18by the commission in a qualified financial institution.
19The department shall transfer the moneys as provided in a
20resolution adopted by the commission. However, the department
21is only required to transfer moneys once during each day and
22only during hours when the offices of the state are open.
23Moneys deposited in the fund and transferred to the commission
24as provided in this section are appropriated and shall be used
25for the purpose of carrying out the provisions of this chapter.
265. The commission may deposit moneys collected from the
27state assessment for clean water in a qualified financial
28institution until transferred to the clean water fund
29created in section 466B.51. During the period when a
30national promotional order is in effect, the Iowa state dairy
31association shall deposit the moneys collected from that
32state assessment in a qualified financial institution until
33transferred to the clean water fund. If the state assessment
34for clean water is terminated as provided in section 179.13A,
35the remaining moneys collected from that state assessment shall
-5-1be immediately transferred to the clean water fund.
26. The commission may require that the invoice also show the
3total amount of any state assessment for direct use deducted
4from the sales price. If a national assessment is being
5collected, the Iowa state dairy association may require that
6the invoice for the national assessment also show the total
7amount of any national assessment, if permitted by federal law.
8If a state assessment for clean water is collected, the first
9purchaser shall furnish the producer at the time of payment an
10invoice showing the total amount of the state assessment for
11clean water deducted from the sales price.
124. 7. a. A person from whom the excise tax provided in
13this chapter a state assessment for direct use is collected
14may, by application filed with the commission within thirty
15days after the collection of the tax state assessment, have the
16tax state assessment refunded to that person by the commission.
17b. If a state assessment for direct use is imposed, a person
18from whom a state assessment for clean water is collected
19may file an application for a refund with the commission.
20The application for a refund shall allow the person to elect
21whether the refund is for the state assessment for direct
22use or the state assessment for clean water or both. The
23commission shall not approve an application unless the
24application indicates the election. The commission shall
25forward an approved application for a refund of the state
26assessment to the division of soil conservation and water
27quality for payment.
28c. If a national assessment is imposed and a refund of the
29national assessment is authorized, a person from whom a state
30assessment for clean water is collected may file an application
31for a refund with the Iowa state dairy association. The
32application shall to the extent allowed by federal law allow
33the person to elect whether the refund is for the national
34assessment or the state assessment for clean water or both.
35The association shall forward the approved application for a
-6-1refund of the state assessment for clean water to the division
2of soil conservation and water quality for payment.
3 Sec. 7. Section 179.6, Code 2022, is amended to read as
4follows:
5179.6 Records of producers, — first purchasers.
6Every producer shipping milk to a first purchaser outside of
7Iowa who is not by agreement with the commission collecting the
8tax state assessment for direct use or the state assessment for
9clean water imposed by this chapter, and every first purchaser
10within the state, and every producer distributing milk directly
11to the consumer, shall keep a complete and accurate record of
12all milk produced or purchased by the person during the period
13for which an excise tax levy a state assessment is imposed
14under this chapter. The records shall be in the form and
15contain the information prescribed by the commission, shall be
16preserved by the person charged with their making for a period
17of two years, and shall be offered or submitted for inspection
18at any time upon written or oral request by the commission or
19its duly authorized agent or employee.
20 Sec. 8. Section 179.8, Code 2022, is amended to read as
21follows:
22179.8 Payment of expenses — limitation.
231. No Any part of the expense incurred by the commission
24shall not be paid out of moneys in the state treasury except
25moneys transferred to the commission from the dairy industry
26fund. Moneys transferred from the fund to the commission, as
27provided in section 179.5, shall be used for the payment of
28all salaries and other expenses necessary to carry out the
29provisions of this chapter. However, in no event shall the
30total expenses exceed the total taxes amount collected from the
31state assessment for direct use collected and transferred from
32the fund to the commission.
332. No more than five percent of the excise tax collected
34 moneys collected from the state assessment for direct use and
35received by the commission pursuant to section 179.5 shall be
-7-1utilized for administrative expenses of the commission.
2 Sec. 9. Section 179.9, Code 2022, is amended to read as
3follows:
4179.9 Investigations by commission.
5The commission shall have the power to cause its authorized
6agents to enter upon the premises of any person charged by this
7chapter or by agreement with the commission with the collection
8of the excise tax a state assessment for direct use or a state
9assessment for clean water imposed by this chapter, and to
10cause to be examined by any such agent any books, records,
11documents, or other instruments bearing upon the amount of
12moneys from such tax state assessment collected or to be
13collected by such person; provided that the commission has
14reasonable ground to believe that all moneys from the tax state
15assessments herein levied has imposed have not been collected,
16or if it has they have not been fully accounted for as herein
17provided.
18 Sec. 10. Section 179.10, Code 2022, is amended to read as
19follows:
20179.10 Report.
21The commission shall each year prepare and submit a report
22summarizing the activities of the commission under this chapter
23to the auditor of state and the secretary of agriculture. The
24report shall show all income, expenses, and other relevant
25information concerning fees the state assessment for direct
26use collected and expended under this chapter. The report
27shall also show the collection and transfer of moneys received
28from any state assessment for clean water imposed under this
29chapter.
30 Sec. 11. Section 179.13, Code 2022, is amended to read as
31follows:
32179.13 Referendum Initial referendum.
331. a. At a time designated by the commission within
34eighteen months after termination of the national promotional
35order made pursuant to the Dairy Production Stabilization
-8-1 federal Act of 1983, 7 U.S.C. §4501 et seq., the commission
2shall conduct a an initial referendum under administrative
3procedures prescribed by the department.
42. b. Upon signing a statement certifying to the department
5that the person is a bona fide producer as defined in this
6chapter, each producer is entitled to one vote in each initial
7 referendum. When the secretary is required to determine the
8approval or disapproval of producers under this section, the
9secretary shall consider the approval or disapproval of a
10cooperative association of producers, engaged in a bona fide
11manner in marketing milk, as the approval or disapproval of the
12producers who are members of or contract with the cooperative
13association of producers. If a cooperative association
14elects to vote on behalf of its members, the cooperative
15association shall provide each producer on whose behalf the
16cooperative association is expressing approval or disapproval
17with a description of the question presented in the initial
18 referendum together with a statement of the manner in which
19the cooperative association intends to cast its vote on behalf
20of the membership. The information shall inform the producer
21of procedures to follow to cast an individual ballot if the
22producer chooses to do so within the period of time established
23by the secretary for casting ballots. The notification shall
24be made at least thirty days prior to the initial referendum
25and shall include an official ballot. The ballots shall be
26tabulated by the secretary and the vote of the cooperative
27association shall be adjusted to reflect the individual votes.
283. c. The department shall count and tabulate the ballots
29filed during the initial referendum within thirty days of the
30close of the initial referendum. If from the tabulation the
31department determines that a majority of the total number of
32producers voting in the initial referendum favors the proposal,
33the excise tax state assessment for direct use provided for in
34this chapter shall be continued. The ballots cast pursuant
35to this section constitute complete and conclusive evidence
-9-1for use in determinations made by the department under this
2chapter.
34. 2. The secretary may conduct a special referendum at any
4time after the Iowa dairy industry commission is reactivated,
5and shall hold a conduct a special referendum on request upon
6receiving a petition of a representative group comprising ten
7percent or more of the number of producers eligible to vote,
8to determine whether the producers favor the termination or
9 suspension or termination of the excise tax state assessment
10for direct use. The secretary shall suspend or terminate
11collection of the excise tax within state assessment for direct
12use no later than six months after the secretary determines
13that suspension or termination of the excise tax state
14assessment is favored by a majority of the producers voting
15in the special referendum, and shall suspend or terminate the
16excise tax state assessment in an orderly manner as soon as
17practicable after the determination.
18 Sec. 12. NEW SECTION. 179.13A Referendums and special
19questions — establishment, increase, or termination of state
20assessment.
211. a. If a state assessment for direct use is established,
22and upon receipt of a petition of producers that otherwise
23complies with requirements to conduct an initial referendum
24under section 179.13, subsection 1, the secretary shall conduct
25a special referendum to determine whether to establish a state
26assessment for clean water.
27b. Upon receipt of a petition of producers that otherwise
28complies with requirements to conduct an initial referendum
29under section 179.13, the secretary shall include as part of
30the initial referendum conducted pursuant to section 179.13,
31subsection 1, a separate special question whether to establish
32a state assessment for clean water, if the secretary determines
33the inclusion of the special question is cost-effective or the
34petition demands inclusion.
35c. The secretary shall conduct the special referendum under
-10-1this subsection or include the special question as part of an
2initial or special referendum conducted under section 179.13,
3subsection 1, in consultation with the commission and which
4may be based on the same procedures for conducting an initial
5referendum under section 179.13.
6d. If the secretary determines that the establishment of
7a state assessment for clean water is favored by a majority
8of the producers voting in a special referendum under this
9subsection or in an initial referendum conducted under section
10179.13, subsection 1, that includes a special question as
11provided in paragraph “b”, the state assessment shall commence
12on a date determined by the secretary after consultation with
13the commission but not later than six months after the date
14that the special or initial referendum was conducted.
152. a. If a national assessment is being collected, and upon
16receipt of a petition of producers that otherwise complies with
17requirements to conduct an initial referendum under section
18179.13, subsection 1, the secretary shall conduct a special
19referendum to determine whether to establish a state assessment
20for clean water.
21b. Upon receipt of a petition of producers that otherwise
22complies with requirements to conduct an initial referendum
23under section 179.13, subsection 1, the secretary shall include
24as part of the referendum to establish a national assessment,
25a separate special question whether to establish a state
26assessment for clean water, if the secretary determines the
27inclusion of the special question complies with federal law and
28either is cost-effective or the petition demands inclusion.
29c. The secretary shall conduct the special referendum under
30this subsection or include the special question as part of a
31referendum to establish a national referendum in consultation
32with the Iowa state dairy association and which may be based on
33the same procedures for conducting an initial referendum under
34section 179.13, subsection 1, or a referendum to establish a
35national assessment.
-11- 1d. If the secretary determines that the establishment of a
2state assessment for clean water is favored by a majority of
3the producers voting in a special referendum conducted under
4paragraph “a” or a referendum to establish a national assessment
5that includes a special question as provided in paragraph “b”,
6the state assessment shall commence on a date determined by
7the secretary after consultation with the Iowa state dairy
8association but not later than six months after the date that
9the special referendum or referendum establishing a national
10assessment was conducted.
113. a. If the rate of the national assessment has been
12increased, and upon receipt of a petition of producers that
13otherwise complies with requirements to conduct an initial
14referendum under section 179.13, subsection 1, the secretary
15shall conduct a special referendum to determine whether to
16increase the rate of the state assessment for clean water to
17a rate established by the Iowa state dairy association not to
18exceed the rate of the national assessment.
19b. Upon receipt of a petition of producers that otherwise
20complies with requirements to conduct an initial referendum
21under section 179.13, subsection 1, the secretary shall include
22as part of a referendum to increase the rate of the national
23assessment, a separate special question whether to increase
24the rate of the state assessment for clean water at a rate
25established by the Iowa state dairy association not to exceed
26the increase in the national assessment, if the secretary
27determines the inclusion of the special question complies
28with federal law and is either cost-effective or the petition
29demands inclusion.
30c. The secretary shall conduct the special referendum under
31this subsection, or include the special question as part of a
32referendum to increase the national assessment, in consultation
33with the Iowa state dairy association and which may be based on
34the same procedures for conducting an initial referendum under
35section 179.13, subsection 1, or a referendum to increase the
-12-1rate of the national assessment.
2d. If the national assessment is increased, and the
3secretary determines that an increase in the state assessment
4for clean water is favored by a majority of the producers
5voting in a special referendum or referendum to increase
6the rate of the national assessment, the rate of the state
7assessment shall be increased on a date determined by the
8secretary after consultation with the Iowa state dairy
9association but not later than six months after the date that
10the special referendum or referendum establishing a national
11assessment was conducted. If a special referendum or special
12question to increase the rate of the state assessment for clean
13water does not pass, the result of the vote shall not affect
14the existence or length of the period when the state assessment
15is in effect.
164. a. If a state assessment for direct use is imposed,
17and upon receipt of a petition of producers that otherwise
18complies with requirements to conduct a special referendum
19under section 179.13, subsection 2, the secretary shall conduct
20a special referendum to determine whether to terminate the
21state assessment for clean water.
22b. Upon receipt of a petition of producers that otherwise
23complies with requirements to conduct a special referendum
24under section 179.13, subsection 2, the secretary shall include
25as part of a special referendum to suspend or terminate the
26state assessment for direct use conducted pursuant to section
27179.13, subsection 2, a separate special question whether
28to terminate the state assessment for clean water, if the
29secretary determines the inclusion of the special question is
30cost-effective or the petition demands inclusion.
31c. The secretary shall conduct the special referendum under
32this subsection or include the special question as part of a
33special referendum conducted under section 179.13, subsection
342, in consultation with the commission and which may be based
35on the same procedures for conducting a special referendum
-13-1under section 179.13, subsection 2.
2d. If the secretary determines that the termination of
3a state assessment for clean water is favored by a majority
4of the producers voting in a special referendum under this
5subsection, or a special referendum conducted under section
6179.13, subsection 2, the state assessment shall terminate on a
7date determined by the secretary after consultation with the
8commission but not later than six months after the date that
9the special or initial referendum was conducted. The secretary
10shall terminate the state assessment in an orderly manner as
11soon as practical.
125. The secretary shall terminate the state assessment for
13clean water upon determining that the state assessment for
14direct use and the national assessment are terminated. The
15secretary shall terminate the state assessment for clean water
16in an orderly manner as soon as practical.
17DIVISION II
18IOWA BEEF CATTLE PRODUCERS ASSOCIATION — EXECUTIVE COMMITTEE
19 Sec. 13. Section 181.1, subsection 10, Code 2022, is amended
20to read as follows:
2110. “State assessment” means an excise tax on the sale of
22cattle imposed pursuant to this chapter which may include a
23state assessment for direct use and a state assessment for
24clean water.
25 Sec. 14. Section 181.2, Code 2022, is amended by adding the
26following new subsection:
27 NEW SUBSECTION. 5. Cooperate with the division of soil
28conservation and water quality of the department of agriculture
29and land stewardship in transferring moneys collected from
30the state assessment for clean water to the clean water
31fund created in section 466B.51 and for being reimbursed for
32reasonable expenses incurred in conducting an initial or
33special referendum to establish, continue, or terminate a state
34assessment for clean water.
35 Sec. 15. Section 181.7A, Code 2022, is amended to read as
-14-1follows:
2181.7A Commencement of federal assessment — suspension and
3recommencement of state assessment — rate.
41. Prior to the commencement of the collection of
5the federal assessment, the executive committee may seek
6certification as a qualified state beef council within the
7meaning of the federal Act.
82. The executive committee shall suspend the state
9assessment for direct use upon collection of the federal
10assessment. The state assessment for direct use shall
11recommence upon the earlier of the following:
12a. The noncollection of the federal assessment. The
13recommenced state assessment for direct use shall be imposed
14for a four-year period. Its effective date shall be the first
15date for which the federal assessment is not collected.
16b. The passage of a special referendum pursuant to section
17181.19 regardless of whether a federal assessment is being
18collected.
193. The rate of the recommenced state assessment shall be the
20same as the rate that was last in effect under section 181.19
21immediately prior to the suspension of the state assessment.
224. The state assessment for clean water shall continue to be
23imposed during any period of suspension of the state assessment
24for direct use so long as the state assessment for clean water
25is not terminated pursuant to section 181.19A.
26 Sec. 16. Section 181.8, Code 2022, is amended to read as
27follows:
28181.8 Executive committee — entering premises — examining
29records.
30The executive committee may authorize its agents to enter
31at a reasonable time upon the premises of any purchaser
32charged by this chapter with remitting the a state assessment
33for direct use or a state assessment for clean water to the
34executive committee, and to. The agents may examine records
35and other instruments relating to the collection of the a state
-15-1assessment. However, the executive committee must first have
2reasonable grounds to believe that the a state assessment has
3not been remitted or fully accounted for.
4 Sec. 17. Section 181.11, Code 2022, is amended to read as
5follows:
6181.11 Collection of state assessment assessments.
71. A state assessment for direct use or a state assessment
8for clean water imposed as provided in this chapter shall be
9levied and collected from the purchaser on each sale of cattle
10at a rate provided in this chapter. The state assessment for
11direct use or a state assessment for clean water shall be
12imposed on any person selling cattle and shall be deducted
13by the purchaser from the price paid to the seller. The
14purchaser, at the time of the sale, shall make and deliver to
15the seller a separate invoice for each sale showing the names
16and addresses of the seller and the purchaser, the number of
17cattle sold, and the date of sale. The purchaser shall forward
18the state assessment for direct use and any state assessment
19for clean water to the executive committee at a time prescribed
20by the executive committee, but not later than the last day of
21the month following the end of the prior reporting period in
22which the cattle are sold.
232. The executive committee may enter into arrangements with
24persons purchasing cattle outside of this state for remitting
25the state assessment for direct use and any state assessment
26for clean water by such purchasers.
27 Sec. 18. Section 181.12, Code 2022, is amended to read as
28follows:
29181.12 Remission of state assessment assessments on
30application.
311. a. A person from whom a state assessment for direct
32use is collected may, by written application filed with the
33executive committee within ninety days after its collection,
34have the amount remitted to the person by the executive
35committee.
-16- 1b. A person from whom a state assessment for clean water is
2collected may, by written application filed with the council
3as provided in paragraph “a”, have the amount remitted to the
4person by the division of soil conservation and water quality
5of the department of agriculture and land stewardship. Within
6sixty days after its collection, the council shall transmit any
7approved application to the division for a refund payment.
82. The information that the a state assessment described
9in subsection 1 is refundable and the address of the executive
10committee to which application for a refund may be made shall
11appear on the invoice of sale form supplied by the purchaser to
12the producer near the area on the form which shows the amount
13of the state assessment paid.
143. a. The executive committee shall furnish uniform
15application for refund forms and make the refund forms readily
16available to all producers.
17b. The form shall allow the applicant to elect whether the
18refund is for the state assessment for direct use or the state
19assessment for clean water or both. The council shall not
20approve an application unless the application indicates the
21election.A purchaser charged by this chapter with remitting
22the a state assessment shall make the forms readily available
23to all producers.
24 Sec. 19. Section 181.13, Code 2022, is amended to read as
25follows:
26181.13 Administration of moneys originating from state
27assessment assessments — appropriation.
281. a. All moneys, other than moneys from the state
29assessments imposed, collected assessment for clean water under
30this chapter shall be paid to and collected by the executive
31committee and deposited with the treasurer of state in a
32separate cattle promotion fund which shall be created by the
33treasurer of state. The department of administrative services
34shall transfer moneys from the fund to the executive committee
35for deposit into an account established by the executive
-17-1committee in a qualified financial institution. The department
2shall transfer the moneys as provided in a resolution adopted
3by the executive committee. However, the department is only
4required to transfer moneys once during each day and only
5during hours when the offices of the state are open. From
6the moneys, other than moneys from the state assessment for
7clean water, collected, deposited, and transferred to the
8executive committee, in accordance with the provisions of this
9chapter, the executive committee shall first pay the costs
10of referendums held pursuant to this chapter, the costs of
11collection of such state assessments, and the expenses of its
12agents. At least ten percent of the remaining moneys shall
13be remitted to the association in proportions determined by
14the executive committee, for use in a manner not inconsistent
15with section 181.7. The remaining moneys, with approval of a
16majority of the executive committee, shall be expended as the
17executive committee finds necessary to carry out the provisions
18and purposes of this chapter. However, in no event shall the
19total expenses exceed the total amount transferred from the
20fund for use by the executive committee.
212. b. All moneys deposited in the cattle promotion fund and
22transferred to the executive committee pursuant to this section
23are appropriated and shall be used for the administration
24of this chapter and for the payment of claims based upon
25obligations incurred in the performance of activities and
26functions set forth in this chapter.
273. c. If the state assessment for direct use is suspended
28as provided in section 181.7A or a continuance special
29 referendum to continue the state assessment for clean water
30 fails to pass as provided in section 181.19A, moneys remaining
31in the cattle promotion fund and transferred to the executive
32committee shall continue to be transferred and expended in
33accordance with the provisions of this chapter until exhausted.
342. a. All moneys collected from the state assessment for
35clean water imposed under this chapter shall be paid to and
-18-1collected by the executive committee and may be deposited in a
2qualified financial institution until transferred to the clean
3water fund created in section 466B.51. If the state assessment
4for clean water is terminated as provided in section 181.19A,
5the remaining moneys collected from that state assessment shall
6be immediately transferred to the clean water fund.
7b. Except as otherwise expressly provided in this chapter,
8moneys collected from the state assessment for clean water
9shall not be used for any purpose other than to be transferred
10to the clean water fund created in section 466B.51.
11 Sec. 20. Section 181.19, Code 2022, is amended to read as
12follows:
13181.19 Initial and special referendums.
141. The secretary shall, upon the petition of five hundred
15producers, conduct an initial referendum to determine whether
16a state assessment for direct use is to be established. If
17established, the state assessment for direct use shall be
18 imposed, at a rate established by the executive committee
19not to exceed one dollar per head on all cattle sold for any
20purpose.
212. The secretary shall, upon the petition of five hundred
22producers, conduct a special referendum to do any of the
23following:
24a. Determine whether a state assessment for direct use
25 already imposed shall be increased to a rate, established by
26the executive committee, not to exceed one dollar per head on
27all cattle sold for any purpose.
28b. Determine whether a state assessment for direct use
29 suspended pursuant to section 181.7A is to be in addition to a
30federal assessment. The state assessment for direct use shall
31be imposed at a rate not to exceed one dollar per head on all
32cattle sold for whatever purpose.
333. a. Upon receipt of a petition that otherwise complies
34with the requirements of subsection 1, the secretary shall
35conduct a special referendum to establish a state assessment
-19-1for clean water to be imposed in the same manner as a state
2assessment for direct use.
3b. The rate of the state assessment for clean water shall
4be established by the executive committee not to exceed the
5rate of the state assessment for direct use in effect on the
6date that the special referendum to impose a state assessment
7for clean water passes. However, if a federal assessment is
8imposed, the rate of the state assessment for clean water shall
9be established by the executive committee not to exceed the
10rate of the federal assessment. If a state assessment for
11direct use and a federal assessment are both being imposed,
12the rate of the state assessment for clean water shall be
13established by the executive committee not to exceed the rate
14of the state assessment for direct use plus the rate of the
15federal assessment
164. Upon receipt of a petition that otherwise complies with
17the requirements of subsection 1, the secretary shall include
18as part of the initial referendum a separate special question
19whether to establish a state assessment for clean water as
20described in subsection 3, if the secretary determines the
21inclusion of the special question is cost-effective or the
22petition demands inclusion.
235. a. Upon receipt of a petition that otherwise complies
24with the requirements of subsection 2, the secretary shall
25conduct a special referendum to change the rate of the state
26assessment for clean water to be established by the executive
27committee not to exceed the rate of the state assessment
28for direct use and any federal assessment as described in
29subsection 2.
30b. Upon receipt of a petition that otherwise complies with
31the requirements of subsection 2, the secretary shall include
32as part of the special referendum conducted under subsection
332 a separate special question whether to change the rate of
34the state assessment for clean water to be established by
35the executive committee not to exceed the rate of the state
-20-1assessment for direct use and any federal assessment as
2described in subsection 2, if the secretary determines the
3inclusion of the special question is cost-effective or the
4petition demands inclusion.
56. a. If a an initial referendum or a special referendum
6described in this section passes, the secretary shall establish
7an effective date to commence the state assessment for direct
8use or the change in the rate of the state assessment for
9direct use. However, the state assessment or the change in the
10rate of the state assessment must be commenced within ninety
11days from the date that the secretary determines that the
12referendum has passed.
13b. If a state assessment for clean water is established
14or the rate of the state assessment for clean water changes
15under this section, the secretary shall establish an effective
16date to commence the state assessment or change the rate of the
17state assessment in the same manner as provided in paragraph
18“a”.
194. 7. a. If a special referendum to increase the rate of
20the state assessment for direct use does not pass, the result
21of the special referendum shall not affect the existence or
22length of the state assessment that is in effect on the date
23that the special referendum was conducted.
24b. If a special referendum, or a separate special question
25that is part of a special referendum conducted under this
26section, to change the rate of the state assessment for clean
27water does not pass, the result of the vote shall not affect
28the existence or period that the state assessment is in effect.
298. A state assessment for clean water is terminated on the
30date that the state assessment for direct use is terminated,
31unless a federal assessment is imposed.
32 Sec. 21. Section 181.19A, Code 2022, is amended to read as
33follows:
34181.19A Continuance referendum Special referendums —
35continuance or termination.
-21- 11. The secretary shall, upon the receipt of a petition
2of producers, conduct a continuance special referendum to
3determine whether a state assessment for direct use established
4in section 181.19 should be renewed continued. The secretary
5must receive the petition not less than one hundred fifty and
6not more than two hundred forty days before the four-year
7anniversary of a state assessment’s the effective date of
8the state assessment for direct use. The petition must be
9signed within that period by a number of producers equal to
10or greater than two percent of the number of producers in
11this state reported in the most recent United States census
12of agriculture, requesting a special referendum to determine
13whether to continue the state assessment for direct use.
14The special referendum shall be conducted not earlier than
15thirty days before the four-year anniversary date of the state
16assessment for direct use.
172. a. The secretary shall, upon receipt of a petition
18of producers otherwise complying with the requirements of
19subsection 1, conduct a special referendum to determine whether
20the state assessment for clean water established in section
21181.19 should be continued. The special referendum shall be
22conducted in the same manner as a special referendum conducted
23under subsection 1.
24b. The secretary shall, upon receipt of a petition complying
25with the requirements of subsection 1, include as part of a
26special referendum provided in subsection 1 a separate special
27question whether a state assessment for clean water should be
28continued, if the secretary determines the inclusion of the
29separate special question is cost-effective or the petition
30demands inclusion.
312. 3. a. If the secretary determines that a continuance
32 special referendum has passed under subsection 1, the state
33assessment for direct use shall continue in effect for four
34additional years from the anniversary of its effective date.
35b. If the secretary determines that a special referendum
-22-1or special question to continue the state assessment for clean
2water has passed under subsection 2, the state assessment shall
3be in effect until the anniversary of the effective date of the
4state assessment for direct use described in paragraph “a”.
53. 4. a. If the secretary determines that the a special
6 referendum to continue the state assessment for direct use has
7not passed, the secretary and the executive committee shall
8terminate the state assessment in an orderly manner as soon as
9practicable after the determination.
10b. If the secretary determines that a special referendum to
11continue the state assessment for clean water has not passed,
12the secretary and the executive committee shall terminate the
13state assessment in the same manner as described in paragraph
14“a”.
15c. A state assessment for clean water is terminated on the
16date that the state assessment for direct use is terminated,
17unless a federal assessment is imposed.
185. a. Another If the secretary determines that a special
19referendum to continue the state assessment for direct use has
20not passed, another initial referendum conducted under section
21181.19 to determine whether to establish a state assessment
22for direct use shall not be held conducted for at least one
23hundred eighty days from the date that the state assessment is
24terminated.
25b. If the secretary determines that a special referendum to
26continue the state assessment for clean water has not passed,
27another special referendum to establish the state assessment or
28another initial or special referendum that includes a separate
29special question to establish the state assessment shall not be
30conducted for at least one hundred eighty days from the date
31that the state assessment was terminated.
324. 6. If no a valid petition for a continuance referendum
33provided in this section is not received by the secretary
34within the time period provided in this section, the state
35assessment for direct use or the state assessment for clean
-23-1water shall continue in effect for four additional years from
2the anniversary of its the effective date of the initial
3referendum establishing the state assessment for direct use.
4DIVISION III
5IOWA SHEEP AND WOOL PROMOTION BOARD
6 Sec. 22. Section 182.1, subsection 1, Code 2022, is amended
7to read as follows:
81. “Assessment” means an excise tax on the sale of sheep
9or wool as provided in this chapter which may include an
10assessment for direct use and a state assessment for clean
11water.
12 Sec. 23. Section 182.1, Code 2022, is amended by adding the
13following new subsection:
14 NEW SUBSECTION. 6A. “Qualified financial institution” means
15a bank or credit union as those terms are defined in section
1612C.1.
17 Sec. 24. Section 182.2, Code 2022, is amended to read as
18follows:
19182.2 Petition for initial referendum election.
20Upon receipt of a petition signed by at least fifty producers
21in each district requesting a an initial referendum by election
22 to determine whether to establish the board and to impose an
23assessment for direct use, the secretary shall call a the
24initial referendum to be conducted within sixty days following
25receipt of the petition.
26 Sec. 25. Section 182.3, Code 2022, is amended to read as
27follows:
28182.3 Notice of initial referendum.
291. The secretary shall give notice of the initial referendum
30on the question of whether to establish an Iowa sheep and wool
31promotion board and to impose the an assessment for direct use
32 by publishing the notice for a period of not less than five
33days in at least one newspaper of general circulation in the
34state. The notice shall state the voting places, period of
35time for voting, and other information deemed necessary by the
-24-1secretary.
22. A An initial referendum shall not be commenced until five
3days after the last date of publication.
4 Sec. 26. Section 182.4, Code 2022, is amended to read as
5follows:
6182.4 Establishment of sheep and wool promotion board —
7assessment assessments — termination.
81. Each producer who signs a statement certifying that
9the producer is a bona fide producer is entitled to one vote
10in an initial referendum conducted under this section. At
11the close of the initial referendum, the secretary shall
12count and tabulate the ballots cast. If a majority of voters
13favor establishing an Iowa sheep and wool promotion board and
14imposing establishing an assessment for direct use, an Iowa
15sheep and wool promotion the board and assessment shall be
16established. The assessment for direct use shall be imposed
17commencing not more than sixty days following the initial
18 referendum as determined by the Iowa sheep and wool promotion
19 board, and shall continue until the board and assessment for
20direct use are terminated by a special referendum as provided
21in conducted pursuant to subsection 2 4.
222. a. If the board is in existence, and upon receipt of
23a petition signed by at least twenty-five producers in each
24district requesting a special referendum to determine whether
25to establish a state assessment for clean water, the secretary
26shall call the special referendum to be conducted in the same
27manner as provided in subsection 1.
28b. If a board is not in existence, and upon receipt of a
29petition that complies with the requirements of paragraph “a”,
30the secretary shall include as part of the initial referendum
31a separate special question whether to establish a state
32assessment for clean water, if the secretary determines the
33inclusion of the special question is cost-effective or the
34petition demands inclusion.
35c. If a majority of voters favor establishing the state
-25-1assessment for clean water, the state assessment shall be
2imposed in the same manner and for the same period as the
3assessment for direct use described in subsection 1.
43. a. If a majority of the voters do not favor establishing
5an Iowa sheep and wool promotion a board and imposing the an
6 assessment for direct use, the board and an assessment shall
7not be established, and the assessment shall not be imposed
8and the board shall not be established until another initial
9 referendum is held conducted under this chapter and a majority
10of the voters favor establishing a board and imposing the
11 an assessment. If a an initial referendum fails, another
12referendum shall not be held within conducted for at least
13 one hundred eighty days from the date of the last initial
14referendum.
15b. If a majority of the voters do not favor establishing
16a state assessment for clean water, the state assessment
17shall not be established until another special referendum, or
18another separate special question that is part of an initial
19referendum, is conducted under this chapter and a majority
20of the voters favor establishing the state assessment. If a
21special referendum or special question fails, another special
22referendum or initial referendum which includes a special
23question shall not be conducted within one hundred eighty days
24from the date that the last such special referendum or initial
25referendum was conducted.
262. 4. Upon receipt of a petition signed by at least
27twenty-five producers in each district requesting a special
28 referendum election to determine whether to terminate the
29establishment of the Iowa sheep and wool promotion board and
30to terminate the imposition of the and the assessment for
31direct use, the secretary shall call a special referendum to
32be conducted within sixty days following the receipt of the
33petition. The petitioners shall guarantee the payment of the
34costs of a the special referendum held conducted under this
35subsection. If the majority of the voters of a voting at the
-26-1special referendum do not favor termination, an additional
2special referendum may be held conducted when the secretary
3receives a petition signed by at least twenty-five producers in
4each district. However, the additional referendum shall not be
5held within conducted for at least one hundred eighty days from
6the date of the last such special referendum.
75. a. Upon receipt of a petition that otherwise complies
8with the requirements of subsection 4 requesting a special
9referendum election to determine whether to terminate the
10establishment of the state assessment for clean water, the
11secretary shall call a special referendum to be conducted in
12the same manner as provided in subsection 4.
13b. Upon receipt of a petition that otherwise complies
14with the requirements of subsection 4, the secretary shall
15include as part of the special referendum conducted under that
16subsection a separate special question whether to terminate the
17state assessment for clean water, if the secretary determines
18the inclusion of the special question is cost-effective or the
19petition demands inclusion.
20c. The petitioners shall guarantee the payment of the costs
21of the special referendum conducted under this subsection.
22d. If the majority of the voters of a special referendum
23conducted under this subsection do not favor termination,
24an additional special referendum may be conducted when
25the secretary receives a petition complying with the same
26requirements as described in this subsection. However, the
27additional special referendum shall not be conducted for at
28least one hundred eighty days from the date of the last such
29special referendum.
306. A state assessment for clean water is terminated on the
31date that the assessment for direct use is terminated. The
32secretary shall terminate the state assessment in an orderly
33manner as soon as practical.
34 Sec. 27. Section 182.11, Code 2022, is amended to read as
35follows:
-27- 1182.11 Purposes of board.
21. The purposes of the board shall be to:
31. a. Enter into contracts or agreements with or make
4grants to recognized and qualified agencies, individuals,
5or organizations for the development and carrying out of
6research and education programs directed toward better and more
7efficient production, marketing, and utilization of sheep and
8wool and their products.
92. b. Provide methods and means, including, but not limited
10to, public relations and other promotion techniques for the
11maintenance of present markets.
123. c. Assist in development of new or larger markets, both
13domestic and foreign, for sheep and wool and their products.
142. The board shall cooperate with the division of soil
15conservation and water quality of the department of agriculture
16and land stewardship in doing all of the following:
17a. Transferring moneys collected from the state assessment
18for clean water to the clean water fund created in section
19466B.51.
20b. Being reimbursed for reasonable expenses incurred in
21conducting an initial or special referendum to establish,
22continue, or terminate a state assessment for clean water.
23 Sec. 28. Section 182.13, Code 2022, is amended to read as
24follows:
25182.13 Compensation — meetings.
26Members of the board may receive payment for their actual
27expenses and travel in performing official board functions.
28Payment shall be made from amounts collected from the
29assessment for direct use. No A member of the board shall not
30 be a salaried employee of the board or any organization or
31agency receiving funds moneys collected from the board. The
32board shall meet at least once every three months, and at other
33times it deems necessary.
34 Sec. 29. Section 182.13B, Code 2022, is amended to read as
35follows:
-28- 1182.13B Assessment rate rates.
21. a. If a majority of voters voting at a an initial
3 referendum conducted pursuant to section 182.4 approve the
4establishment of an Iowa sheep and wool promotion the board and
5the imposition of an assessment for direct use, the assessment
6shall be imposed on wool and sheep at the following rates:
7a. (1) For wool, two cents imposed on each pound of wool
8sold by a producer.
9b. (2) For sheep, ten cents imposed on each head of sheep
10sold by a producer.
11b. If a majority of voters voting at a special referendum
12conducted pursuant to section 182.4 approve the establishment
13of a state assessment for clean water, the state assessment
14shall be imposed on wool and sheep at the rates established by
15board resolution not to exceed the rates described in paragraph
16“a”.
172. a. (1) Notwithstanding subsection 1, upon a resolution
18adopted by the board, the secretary shall call a special
19referendum for voters to authorize increasing the assessment
20 rate of the assessment for direct use imposed on sheep as
21provided in this section.
22(2) Notwithstanding subsection 1, upon a resolution adopted
23by the board, the secretary shall call a special referendum for
24voters to authorize increasing the rate of the state assessment
25for clean water imposed on sheep as provided in this section.
26(3) The secretary shall include as part of the special
27referendum to increase the rate of the assessment for direct
28use as described in subparagraph (1), a separate special
29question whether to increase the rate of the state assessment
30for clean water as described in subparagraph (2), if the
31secretary determines the inclusion of the special question is
32cost-effective or the resolution demands inclusion.
33b. The special referendum to increase the rate of the
34assessment for direct use or to increase the rate of the state
35assessment for clean water as described in paragraph “a” shall
-29-1be conducted in the same manner as a an initial referendum
2conducted upon receipt of a petition as provided in this
3chapter section 182.4, unless otherwise provided in the board’s
4resolution. Only producers are eligible to vote in an election
5 the special referendum and each producer is entitled to one
6vote.
73. a. The special referendum to increase the rate of the
8assessment for direct use conducted pursuant to subsection 2
9shall allow a voter to cast a ballot for the following two
10questions:
11a. (1) For the first question, whether to authorize an
12increase in the rate of assessment rate for direct use to
13twenty-five cents imposed on each head of sheep.
14b. (2) For the second question, if the first question is
15approved by a majority of voters, whether to also authorize the
16board to increase that assessment the rate of the assessment
17for direct use by future resolution as provided in this
18section.
19b. The special referendum to increase the rate of the state
20assessment for clean water conducted pursuant to subsection
212 shall allow a voter to cast a ballot for the following two
22questions:
23(1) For the first question, whether to authorize an increase
24in the rate of state assessment for clean water to a rate
25established by board resolution not to exceed the increased
26rate of assessment for direct use described in paragraph “a”,
27subparagraph (1).
28(2) For the second question, if the first question is
29approved by a majority of voters, whether to also authorize the
30board to increase that rate of state assessment for clean water
31by future resolution as provided in this section.
32c. A state assessment for clean water shall not be
33effective if the state assessment exceeds the assessment for
34direct use.
354. a. If a majority of voters approve the first question to
-30-1increase the rate of the assessment for direct use as described
2in subsection 3, paragraph “a”, subparagraph (1), twenty-five
3cents shall be imposed on each head of sheep sold by a producer
4as effectuated by the board pursuant to section 182.12.
5b. If a majority of voters approve the first question to
6increase the rate of the state assessment for clean water as
7described in subsection 3, paragraph “b”, subparagraph (1),
8the increased rate shall be imposed on each head of sheep sold
9by a producer as effectuated by the board pursuant to section
10182.12.
115. a. If a majority of voters approve both the first and
12second questions to increase the rate of the assessment for
13direct use under subsection 3, paragraph “a”, subparagraphs (1)
14and (2), all of the following apply:
15a. (1) Twenty-five The rate of the assessment for direct
16use shall equal twenty-five cents shall be imposed on each
17head of sheep sold by a producer as effectuated by the board
18pursuant to section 182.12.
19b. (2) The board may adopt one or more resolutions to
20further impose an increased rate of assessment rate for direct
21use.
22b. If a majority of voters approve increasing the rate of
23state assessment for clean water as described in subsection 3,
24paragraph “b”, subparagraphs (1) and (2), all of the following
25apply:
26(1) The rate of the state assessment for clean water shall
27equal the increase described in subsection 3, paragraph “b”,
28subparagraph (1), imposed on each head of sheep sold by a
29producer.
30(2) The board may adopt one or more resolutions to further
31impose an increased rate of state assessment for clean water
32so long as the rate does not exceed the rate of the assessment
33for direct use.
34c. The increased assessment rate of the assessment for
35direct use or the increased rate of the state assessment for
-31-1clean water shall be imposed on each head of sheep sold by
2a producer as effectuated by the board pursuant to section
3182.12. The board shall comply with all of the following:
4(1) The board must wait three or more years from the
5effective date of the previous action imposing an increase in
6the rate of the assessment for direct use in order to adopt
7a resolution. For the first increase, the effective date is
8the date of the special referendum to increase the rate of
9the assessment. For any subsequent increase in the rate of
10assessment, the effective date is the date that the board last
11adopted a resolution imposing an increased rate as provided in
12this paragraph “b” subsection.
13(2) The board must wait three or more years from the
14effective date of the previous action imposing an increase in
15the rate of the state assessment for clean water in order to
16adopt a resolution. For the first increase, the effective date
17is the date of the special referendum to increase the rate
18of the state assessment for clean water. For any subsequent
19increase, the effective date is the date that the board last
20adopted a resolution imposing an increased rate as provided in
21this subsection.
22(2) (3) The board shall not adopt a resolution until it
23provides notice to producers of the proposed increase in the
24assessment for direct use or the state assessment for clean
25water and an opportunity for producers to submit written or
26oral comments to the board regarding the proposed increase.
27The board may provide notice by publication in the same manner
28as provided in section 182.3, publication on its internet
29site, mail bearing a United States postal service postmark,
30electronic transmission, or hand-delivery.
31(3) (4) (a) The An increase in the assessment rate of the
32assessment for direct use imposed by a resolution adopted by
33the board must shall equal five cents. However, the assessment
34 rate of the assessment for direct use imposed by a resolution
35of the board shall not equal more than fifty cents.
-32- 1(b) An increase in the rate of the state assessment for
2clean water imposed by resolution adopted by the board shall
3equal five cents. However, the rate of the state assessment
4for clean water imposed by resolution of the board shall not
5equal more than fifty cents.
66. a. If a majority of voters do not authorize increasing
7the rate of the assessment rate for direct use pursuant to a
8special referendum conducted pursuant to under this section,
9the assessment rate for the assessment for direct use shall be
10the same as provided in subsection 1, paragraph “a”.
11b. If a majority of voters do not authorize increasing the
12rate of the assessment for direct use pursuant to a special
13referendum conducted under this section, the rate for the state
14assessment for clean water shall be the same as provided in
15subsection 1, paragraph “b”.
16b. 7. Not more than one special referendum to establish an
17assessment for direct use or to establish a state assessment
18for clean water shall be conducted pursuant to this section.
19 Sec. 30. Section 182.14, Code 2022, is amended to read as
20follows:
21182.14 Assessment Assessments.
221. An assessment for direct use or a state assessment for
23clean water provided in this chapter shall be imposed on the
24producer as follows:
25a. If the producer sells wool or sheep to the first
26purchaser within this state, the following shall apply:
27(1) If the sale occurs at a concentration point, the
28assessment shall be imposed at the time of delivery. The first
29purchaser shall deduct the assessment or state assessment from
30the price paid to the producer at the time of sale.
31(2) If the sale does not occur at a concentration point,
32the producer shall deduct the assessment or state assessment
33 from the amount received from the sale and shall forward the
34amount deducted to the board within thirty days following each
35calendar quarter.
-33- 1b. If the producer sells, ships, or otherwise disposes of
2wool or sheep to any person outside this state, the producer
3shall deduct the assessment or state assessment from the amount
4received from the sale and shall forward the amount deducted
5to the board.
62. The assessment for direct use or the state assessment
7for clean water imposed by this section shall be remitted to
8the board not later than thirty days following each calendar
9quarter during which the assessment amount or state assessment
10amount was deducted.
11 Sec. 31. Section 182.15, subsection 1, paragraph e, Code
122022, is amended to read as follows:
13e. The rate of withholding and the total amount of the
14assessment for direct use and the state assessment for
15clean water withheld. The board may require the invoice to
16separately indicate the amount withheld for the assessment for
17direct use and the state assessment for clean water.
18 Sec. 32. Section 182.16, Code 2022, is amended to read as
19follows:
20182.16 Deposit and disbursement Administration of funds
21 moneys.
221. The board shall deposit amounts moneys collected from the
23assessment for direct use imposed pursuant to section 182.14 in
24an account established pursuant to section 182.12. Expenses
25and disbursements incurred and made pursuant to this chapter
26shall be made by voucher, draft, or check bearing the signature
27of a person designated by majority vote of the board.
282. a. The board may deposit moneys collected from the state
29assessment for clean water in a qualified financial institution
30until transferred to the clean water fund created in section
31466B.51.
32b. If the state assessment for clean water is terminated as
33provided in section 182.4, the remaining moneys collected from
34that state assessment shall be immediately transferred to the
35clean water fund.
-34-1 Sec. 33. Section 182.17, Code 2022, is amended to read as
2follows:
3182.17 Refunds.
41. a. A producer who has paid the assessment for direct use
5 may, by application in writing to the board, secure a refund of
6all or part of the amount paid to the board.
7b. A producer who has paid the state assessment for clean
8water to the board may, by application in writing to the board,
9secure a refund of all or part of the amount paid to the board.
10The board shall transmit any approved application for a refund
11to the division of soil conservation and water quality of the
12department of agriculture and land stewardship for payment.
132. The refund shall be payable only when the application has
14been made to the board within sixty days after the deduction
15has been made by the producer or within sixty days after the
16remittance has been made by the first purchaser.
173. Each application for refund by a producer shall have
18an attached proof indicating that the assessment for direct
19use was paid. If a state assessment for clean water is
20imposed, the attached proof shall also indicate that the state
21assessment has also been paid. The attached proof of the
22assessment paid may be in the form of a duplicate or certified
23copy of the purchase invoice by the purchaser.
244. The application shall allow the applicant to elect
25whether the refund is for the assessment for direct use or the
26state assessment for clean water or both. The board shall not
27approve an application unless the application indicates the
28election.
29 Sec. 34. Section 182.18, Code 2022, is amended to read as
30follows:
31182.18 Use of moneys.
321. Moneys from the assessment for direct use collected
33under this chapter are subject to audit by the auditor of state
34and shall be used by the Iowa sheep and wool promotion board
35first for the payment of collection and refund expenses, second
-35-1for payment of the costs and expenses arising in connection
2with conducting referendums, third for the purposes identified
3in section 182.11, and fourth for the cost of audits for
4the auditor of state. Moneys of the board remaining after
5a special referendum is held at which a majority of the
6voters favor termination of the board and the assessment for
7direct use shall continue to be expended in accordance with
8this chapter until exhausted. The auditor of state may seek
9reimbursement for the cost of the audit.
102. Except as expressly provided in this chapter, moneys
11collected by the board from the state assessment for clean
12water shall not be used for any purpose other than to be
13transferred to the clean water fund created in section 466B.51.
142. 3. The board shall not engage in any political activity,
15and it shall be a condition of any allocation of funds that
16any organization receiving funds shall not expend the funds on
17political activity or on any attempt to influence legislation.
18 Sec. 35. Section 182.22, Code 2022, is amended to read as
19follows:
20182.22 Purchasers outside Iowa.
21The secretary may enter into arrangements with first
22purchasers from outside Iowa for payment of the assessment for
23direct use and the state assessment for clean water.
24DIVISION IV
25IOWA PORK PRODUCERS COUNCIL And
26IOWA PORK PRODUCERS ASSOCIATION
27 Sec. 36. Section 183A.1, subsection 1, Code 2022, is amended
28to read as follows:
291. “Assessment” means an excise tax on the sale of porcine
30animals as provided in this chapter which may include an
31assessment for direct use and a state assessment for clean
32water.
33 Sec. 37. Section 183A.1, Code 2022, is amended by adding the
34following new subsections:
35 NEW SUBSECTION. 1A. “Council” means the Iowa pork producers
-36-1council created pursuant to section 183A.2.
2 NEW SUBSECTION. 4A. “National assessment” means an excise
3tax on the sale of porcine animals imposed pursuant to the Pork
4Promotion Act.
5 Sec. 38. Section 183A.1, subsection 7, Code 2022, is amended
6to read as follows:
77. “Pork Promotion Act” means the federal Pork Promotion,
8Research, and Consumer Information Act of 1985, 7 U.S.C. §4801
9et seq.
10 Sec. 39. Section 183A.5, subsection 1, paragraph i, Code
112022, is amended to read as follows:
12i. Receive, administer, disburse, and account for, in
13addition to the funds moneys received from the assessment for
14direct use and the state assessment for clean water provided in
15this chapter, other funds moneys voluntarily contributed to the
16council for the purpose of promoting the pork industry.
17 Sec. 40. Section 183A.5, Code 2022, is amended by adding the
18following new subsection:
19 NEW SUBSECTION. 4. The council shall cooperate with
20the division of soil conservation and water quality of the
21department of agriculture and land stewardship in doing all of
22the following:
23a. Transferring moneys collected from the state assessment
24imposed as a result of a special referendum conducted pursuant
25to section 183A.9 to the clean water fund created in section
26466B.51.
27b. Being reimbursed for reasonable expenses incurred in
28conducting an initial or special referendum to establish,
29continue, or terminate a state assessment for clean water.
30 Sec. 41. Section 183A.6, Code 2022, is amended to read as
31follows:
32183A.6 Assessment Assessments.
331. The council shall make impose an assessment for direct
34use of not less than point zero zero two nor more than point
35zero zero three of the gross sale price of all porcine animals.
-37-1The assessment for direct use shall be point zero zero two five
2of the gross sale price of porcine animals until consent to
3an assessment has been given through the initial referendum
4referred to in this chapter. After approval of the initial
5referendum, the rate of assessment for direct use shall be
6determined established by the council.
72. a. If an assessment for direct use is imposed under
8subsection 1, the council shall impose a state assessment for
9clean water if approved at a special referendum conducted
10pursuant to section 183A.9.
11b. If a national assessment is imposed under section
12183A.9A, the Iowa pork producers association shall impose a
13state assessment for clean water if approved at a special
14referendum conducted pursuant to section 183A.9.
153. a. The assessment for direct use and the state
16assessment for clean water shall be made at the time of
17delivery of the porcine animals for sale, and shall be deducted
18by the first purchaser from the price paid to the seller. The
19first purchaser, at the time of sale, shall make and deliver
20to the seller an invoice for each purchase showing the names
21and addresses of the seller and the first purchaser, the number
22and kind of porcine animals sold, the date of sale, and the
23assessment for direct use, and any state assessment for clean
24water made on the sale. The council may require the invoice to
25separately indicate the amount withheld for the assessment for
26direct use and the state assessment for clean water.
272. b. Assessments An assessment for direct use and the
28state assessment for clean water shall be paid to the Iowa pork
29producers council or its designated agent by first purchasers
30at a time prescribed by the council, but not later than the
31last day of the month following the month in which the animals
32were purchased.
334. If a national assessment is imposed pursuant to section
34183A.9A, and a state assessment for clean water is imposed
35under section 183A.9, the Iowa pork producers association shall
-38-1impose and collect the state assessment for clean water in
2the same manner as the assessment for direct use set forth in
3subsection 3. However, the Iowa pork producers association may
4impose and collect the state assessment based on procedures for
5the national assessment as set forth in the Pork Promotion Act.
6The invoice may correspond to any invoice required by the Pork
7Promotion Act.
8 Sec. 42. Section 183A.7, Code 2022, is amended to read as
9follows:
10183A.7 Administration of moneys — appropriation.
111. a. Assessments An assessment for direct use imposed
12under this chapter pursuant to section 183A.6 and paid to and
13collected by the Iowa pork producers council shall be deposited
14in the pork promotion fund which is established in the office
15of the treasurer of state. The department of administrative
16services shall transfer moneys from the pork promotion fund
17to the council for deposit into an account established by the
18council in a qualified financial institution. The department
19shall transfer the moneys as provided in a resolution adopted
20by the council. However, the department is only required to
21transfer moneys once during each day and only during hours when
22the offices of the state are open.
232. b. All moneys deposited in the pork promotion fund and
24transferred to the council as provided in this section are
25appropriated and shall be used for the administration of this
26chapter and for the payment of claims based upon obligations
27incurred in the performance of activities and functions set
28forth in this chapter.
293. c. From the moneys collected, deposited, and transferred
30to the council as provided in this chapter, the council shall
31first pay the costs of referendums held pursuant to this
32chapter. Of the moneys remaining, at least twenty-five percent
33shall be remitted to the national pork producers council and
34at least fifteen percent shall be remitted to the Iowa pork
35producers association, in the proportion the committee Iowa
-39-1pork producers council determines, for use by recipients in
2a manner not inconsistent with market development as defined
3in section 183A.1. Moneys remaining shall be spent as found
4necessary by the Iowa pork producers council to further carry
5out the provisions and purposes of this chapter.
64. d. However, in In no event shall the total expenses
7exceed the total amount of moneys transferred from the pork
8promotion fund for use by the council.
92. a. Moneys collected from a state assessment for clean
10water by the council may be deposited in a qualified financial
11institution and shall be transferred to the clean water fund
12created in section 466B.51.
13b. If a national assessment is imposed pursuant to section
14183A.9A, moneys from the state assessment for clean water
15collected by the Iowa pork producers association shall be
16transferred to the clean water fund created in section 466B.51.
17c. The Iowa pork producers association shall maintain
18separate accounts for moneys collected from the national
19assessment and the state assessment for clean water.
20d. The Iowa pork producers association shall adopt rules
21as a state agency pursuant to chapter 17A as necessary to
22administer this subsection and other sections in this chapter
23which directly or indirectly relate to this subsection.
24 Sec. 43. Section 183A.8, Code 2022, is amended to read as
25follows:
26183A.8 Refund of assessment assessments.
271. A producer from whom the an assessment for direct use or
28a state assessment for clean water has been deducted, upon is
29entitled to receive a refund upon filing a written application
30filed with the council within thirty days after its collection,
31shall have that amount refunded by the council.
322. a. Application If an assessment for direct use or state
33assessment for clean water are imposed, application forms shall
34be given by the council to each first purchaser when requested
35and the first purchaser shall make the applications available
-40-1to any producer.
2b. Each application for a refund by a producer shall have
3attached a proof of assessment for direct use deducted. If
4the assessment for direct use and state assessment for clean
5water are imposed, the attached proof shall indicate the amount
6of the assessment and the amount of the state assessment
7deducted. The proof of the assessment for direct use and any
8state assessment for clean water deducted shall be in the form
9of the original or a copy of the purchase invoice by the first
10purchaser. The application shall allow the applicant to elect
11whether the refund is for the assessment for direct use or the
12state assessment for clean water or both. The council shall
13not approve an application unless the application indicates the
14election.
153. The council shall have no not more than thirty days from
16the date the application for a refund is received to remit do
17all of the following:
18a. Remitthe amount of the refund of an assessment for
19direct use to the producer.
20b. Submit an approved application for the refund of a state
21assessment for clean water to the division of soil conservation
22and water quality of the department of agriculture and land
23stewardship which shall remit the amount of the refund to the
24producer.
254. If a national assessment is established pursuant to
26section 183A.9A and a state assessment for clean water is
27established pursuant to section 183A.9, the producer shall file
28a written application with the Iowa pork producers association
29in lieu of the council in the same manner as provided in
30subsection 1 and the Iowa pork producers association shall
31make applications available to first purchasers as provided in
32subsection 2. However, the Iowa pork producers association
33may provide for filing applications for a refund based on any
34applicable procedures set forth in the Pork Promotion Act. In
35any case, the Iowa pork producers association must transfer
-41-1approved applications for refunds to the division of soil
2conservation and water quality of the department of agriculture
3and land stewardship for payment to producers in the same
4manner as described in subsection 3.
5 Sec. 44. Section 183A.9, Code 2022, is amended to read as
6follows:
7183A.9 Referendum Initial and special referendums —
8assessments.
91. At a time designated by the council within eighteen
10months after the termination of the collection of assessments
11 the national assessment imposed under the Pork Promotion Act,
12the secretary shall conduct an initial referendum under to
13establish an Iowa pork producers council and an assessment
14for direct use. The referendum shall be conducted according
15to administrative procedures prescribed rules adopted by the
16department of agriculture and land stewardship.
172. If an assessment for direct use is established and upon
18receipt of a request of ten percent or more of the number
19of producers eligible to vote, the secretary shall conduct a
20special referendum to determine whether producers favor the
21establishment of a state assessment for clean water. The
22special referendum shall be conducted in the same manner
23as an initial referendum conducted pursuant to subsection
241. The rate of the state assessment for clean water shall
25be established by the council not to exceed the rate of the
26assessment for direct use established pursuant to an initial
27referendum described in section 183A.6.
283. Upon receipt of a petition that otherwise complies with
29the requirements of subsection 2, the secretary may in lieu of
30conducting a special referendum include as part of the initial
31referendum a separate special question whether to establish a
32state assessment for clean water, if the secretary determines
33it to be cost-effective or the petition demands it.
342. 4. Upon signing a statement certifying to the secretary
35that the person is a bona fide producer as defined in this
-42-1chapter, each producer is entitled to one vote in each initial
2or special referendum. The secretary shall determine the
3qualification of producers under this section.
43. 5. The secretary shall count and tabulate the ballots
5filed during the initial or special referendum within thirty
6days of the close of the referendum. If from the tabulation
7the secretary determines that a majority of the total number
8of producers voting in the initial referendum favors the
9establishment of the assessment for direct use, the assessment
10provided for in the referendum shall be levied imposed. If
11from the tabulation the secretary determines that a majority of
12the total number of producers voting in the initial or special
13referendum favors the establishment of the state assessment
14for clean water, the state assessment shall be imposed. The
15ballots cast pursuant to this section constitute complete and
16conclusive evidence for use in determinations made by the
17secretary under this chapter.
184. 6. a. The secretary shall hold subsequent referendums
19 conduct a special referendum on request of receipt of a
20petition signed by ten percent or more of the number of
21producers eligible to vote, to determine whether the producers
22favor the termination or any of the following:
23(1) Thesuspension of the assessment for direct use.
24(2) The termination of the assessment for direct use and the
25state assessment for clean water, if established.
26b. The secretary shall suspend or terminate collection
27of the assessment for direct use within six months after the
28secretary determines that suspension or termination of the
29assessment for direct use is favored by a majority of the
30producers voting in the special referendum, and. The secretary
31 shall suspend or terminate the assessment for direct use in an
32orderly manner as soon as practicable after the determination.
337. a. The secretary shall conduct a special referendum on
34receipt of a petition of producers otherwise complying with the
35requirements in subsection 6 to conduct a special referendum to
-43-1terminate the state assessment for clean water.
2b. Upon receipt of a petition that otherwise complies
3with the requirements of subsection 6, the secretary shall
4include as part of the special referendum conducted under that
5subsection a separate special question whether to terminate
6the state assessment for clean water, if the secretary
7determines the inclusion of the separate special question is
8cost-effective or the petition demands inclusion.
98. The secretary shall terminate the state assessment for
10clean water in the same manner as provided in subsection 6,
11upon determining that the council is abolished, the assessment
12for direct use is not being collected, and the national
13assessment is not being collected.
14 Sec. 45. Section 183A.9A, Code 2022, is amended to read as
15follows:
16183A.9A Suspension during national order.
171. The terms of all voting members serving on the council on
18January 31, 1986 terminate at the time provided in subsection
192.
202. 1. On the date of the commencement of the collection
21of assessments a national assessment under the Pork Promotion
22Act, the collection of the assessments assessment for direct
23use under section 183A.6 shall be suspended. The council shall
24continue to operate after suspension until all refunds are paid
25and all funds moneys remaining in the pork promotion fund, less
26a reserve for future refunds, are disbursed for the purposes
27enumerated in this chapter. Notwithstanding section 183A.7,
28the council need not retain a reserve for future referendums.
29Upon completion of these acts, the existence of the Iowa pork
30producers council is suspended. The secretary of agriculture
31 shall certify the suspension of the council as of a date
32certain to the Iowa pork producers council and the Iowa pork
33producers association. When the existence of the council is
34suspended, the terms of office of council members terminate.
352. a. The state recognizes the Iowa pork producers
-44-1association as a state association under the Pork Promotion
2Act. For purposes of this chapter, “association” shall include
3a successor state association or other state association that
4administers the national assessment in Iowa.
5b. If a state assessment for clean water is established
6or continued pursuant to sections 183A.9 and 183A.9A, the
7Iowa pork producers association shall administer the state
8assessment for the period that the Pork Promotion Act is in
9effect, unless the state assessment is terminated under section
10183A.9. On the date of the commencement of the collection of
11the national assessment under the Pork Promotion Act, the Iowa
12pork producers association shall assume collection of the state
13assessment for clean water under section 183A.9.
143. a. If the rate of the national assessment has changed,
15and upon receipt of a petition that otherwise complies
16with requirements for submitting a petition to suspend or
17terminate an assessment for direct use under section 183A.9,
18the secretary shall conduct a special referendum to determine
19whether to change the rate of the state assessment for
20clean water to a rate established by the Iowa pork producers
21association not to exceed the rate of the national assessment.
22b. Upon receipt of a petition that otherwise complies with
23requirements for submitting a petition to suspend or terminate
24an assessment for direct use under section 183A.9, the
25secretary shall include as part of a referendum to change the
26rate of the national assessment, a separate special question
27whether to change the rate of the state assessment for clean
28water not to exceed the change in the national assessment, if
29the secretary determines the inclusion of the special question
30complies with federal law and either it is cost-effective or
31the petition demands inclusion.
32c. If the national assessment is changed, and the secretary
33determines that a change in the state assessment for clean
34water is favored by a majority of the producers voting in a
35special referendum or separate special question as part of
-45-1a referendum to change the rate of the national assessment,
2the rate of the state assessment shall be changed on a date
3determined by the secretary after consultation with the Iowa
4pork producers association but not later than six months
5after the date that the special referendum or referendum was
6conducted.
73. 4. On the date of the termination of the collection of
8assessments the national assessment under the Pork Promotion
9Act, the period of suspension of the assessments assessment
10for direct use under subsection 2 3 terminates. The secretary
11shall collect moneys from the assessments assessment for direct
12use under section 183A.6 and the state assessment for clean
13water under section 183A.9 until this duty can be resumed by
14the reactivated council. The secretary shall deposit moneys
15collected from the assessment for direct use in the pork
16promotion fund. The secretary shall transfer moneys collected
17from the state assessment for clean water to the clean water
18fund created in section 466B.51. The secretary shall cooperate
19with the Iowa pork producers association in performing these
20duties.
214. 5. On the date of the termination of the collection of
22assessments the national assessment under the Pork Promotion
23Act, the period of suspension of the council under subsection 2
24 1 terminates. Within sixty days from this date, the secretary
25shall appoint voting members to the council. For purposes of
26section 183A.3, a voting member so appointed is deemed not to
27have served a previous consecutive term. The terms of office
28of voting members of the initial reactivated council shall be
29determined by lot, but members from the same district shall
30not serve the same terms. As nearly as possible one-third of
31the voting members shall serve for one year, one-third of the
32voting members shall serve for two years, and one-third of the
33voting members shall serve for three years. Subsequent voting
34members shall be appointed pursuant to section 183A.2.
355. 6. The secretary shall call the first meeting of the
-46-1reactivated council. Upon reactivation, the council shall
2reimburse the secretary for expenses incurred in carrying out
3the duties provided in this section.
47. The Iowa pork producers association shall cooperate with
5the division of soil conservation and water quality of the
6department of agriculture and land stewardship in doing all of
7the following:
8a. Transferring moneys from the state assessment for clean
9water to the clean water fund created in section 466B.51.
10b. Being reimbursed for reasonable expenses incurred in
11conducting an initial or special referendum to establish,
12continue, or terminate a state assessment for clean water.
13DIVISION V
14IOWA EGG COUNCIL
15 Sec. 46. Section 184.1, subsection 1, Code 2022, is amended
16to read as follows:
171. “Assessment” means an excise tax on the sale of eggs as
18provided in this chapter which may include an assessment for
19direct use and a state assessment for clean water.
20 Sec. 47. Section 184.1, subsection 2, Code 2022, is amended
21to read as follows:
222. “Council” means the Iowa egg council established pursuant
23to section 184.2.
24 Sec. 48. Section 184.2, Code 2022, is amended to read as
25follows:
26184.2 Establishment of Iowa egg council and assessment
27 assessments.
281. The secretary shall call and the department shall conduct
29a an initial referendum upon the department’s receipt of a
30petition for assessment for direct use which is signed by at
31least twenty producers requesting a an initial referendum to
32determine whether to establish an Iowa egg council and to
33impose establish an assessment for direct use to be imposed as
34provided in section 184.3.
352. a. If the council has been established, the secretary
-47-1shall call and the department shall conduct a special
2referendum upon the department’s receipt of a petition that
3otherwise complies with subsection 1 calling for a state
4assessment for clean water to be imposed as provided in section
5184.3.
6b. Upon receipt of a petition that otherwise complies with
7subsection 1, the secretary may in lieu of conducting a special
8referendum include as part of the initial referendum a separate
9special question whether to establish a state assessment for
10clean water to be imposed as provided in section 184.3, if the
11secretary determines the inclusion of the special question is
12cost-effective or the petition demands inclusion.
133. The initial referendum or a special referendum described
14in this section shall be conducted within sixty days following
15receipt of the petition. The petitioners shall guarantee
16payment of the cost of the initial referendum or special
17referendum by providing evidence of financial security as
18required by the department.
192. 4. The department shall give notice of the initial
20 referendum on the question whether to establish a council and
21to impose an assessment or special referendum described in this
22section by publishing the notice for a period of not less than
23five days in at least one newspaper of general circulation in
24the state. The notice shall state the voting places, period
25of time for voting, and other information deemed necessary by
26the department. A An initial referendum or special referendum
27 shall not be commenced until five days after the last date of
28publication.
293. a. 5. Each producer who signs a statement certifying
30that the producer is a bona fide producer shall be an eligible
31voter under this section. An eligible voter is entitled to
32cast one vote in each initial referendum or special referendum
33 conducted under this section.
34b. 6. At the close of the initial referendum or special
35referendum, the secretary shall count and tabulate the ballots
-48-1cast.
2(1) 7. a. If a majority of eligible voters approve
3establishing an Iowa egg the council and imposing an assessment
4for direct use, a the council and the assessment shall be
5established, and an the assessment shall be imposed, commencing
6not more than sixty days following the initial referendum as
7determined by the council and shall continue until eligible
8voters voting in a special referendum held conducted pursuant
9to section 184.5 vote to abolish the council and terminate the
10imposition of the assessment for direct use.
11b. If a majority of eligible voters approve establishing
12a state assessment for clean water, pursuant to a special
13referendum, the state assessment shall be imposed commencing
14not more than sixty days following the special referendum as
15determined by the council. If a majority of eligible voters
16approve establishing a state assessment for clean water, as
17part of an initial referendum the state assessment shall be
18imposed in the same manner described in paragraph “a”. The
19state assessment for clean water shall continue until eligible
20voters voting in a special referendum conducted pursuant to
21section 184.5 vote to do any of the following:
22(1) Abolish the council and terminate the assessment for
23direct use.
24(2) Terminate the state assessment for clean water.
25(2) 8. a. If a majority of the voters do not approve
26establishing the council and imposing the assessment for direct
27use, the council and the assessment shall not be established,
28 and an the assessment shall not be imposed, until another
29initial referendum is held conducted under this chapter and a
30majority of the eligible voters approve establishing a council
31and imposing the an assessment for direct use. If a an initial
32 referendum should fail, another initial referendum to decide
33whether to establish a council and an assessment shall not be
34held conducted within at least one hundred eighty days from the
35date that the last initial referendum was conducted.
-49- 1b. If a majority of the voters do not approve establishing
2a state assessment for clean water, the state assessment
3shall not be established until the question is approved at
4a special referendum or as part of an initial referendum
5conducted pursuant to this section. If a special referendum,
6or an initial referendum which includes the question whether
7to establish a state assessment for clean water, should fail,
8the special referendum or an initial referendum which includes
9the special question shall not be conducted for at least one
10hundred eighty days from the date that the last such special
11referendum or initial referendum was conducted.
124. 9. Immediately after passage of the question to
13establish a council and assessment for direct use at the an
14initial referendum, the secretary shall appoint seven members
15to the council in accordance with section 184.6 based on
16nominations made by the Iowa poultry association. The Iowa
17poultry association shall nominate and the secretary shall
18appoint two members representing large producers, two members
19representing medium producers, and three members representing
20small producers. The department, in consultation with the Iowa
21poultry association, shall determine initial classifications
22for small, medium, and large producers. The secretary shall
23complete the appointments within thirty days following passage
24of the question at the initial referendum.
25 Sec. 49. Section 184.3, Code 2022, is amended to read as
26follows:
27184.3 Assessment Assessments and state assessments.
281. a. Except as provided in paragraph “b” subsection 4,
29an assessment for direct use of two and one-half cents is
30imposed on each thirty dozen eggs produced in this state. The
31assessment for direct use shall be imposed on a producer at the
32time of delivery to a purchaser who shall deduct the assessment
33for direct use from the price paid to a producer at the time of
34sale.
352. A state assessment for clean water is imposed and
-50-1deducted in the same manner as the assessment for direct use
2provided in subsection 1. The rate of the state assessment for
3clean water shall be established by the council at a rate not
4to exceed the rate of assessment for direct use as provided in
5subsection 1.
63. The assessment for direct use and the state assessment
7for clean water shall not be refundable. The assessment is for
8direct use and state assessment for clean water are due to be
9paid to the council within thirty days following each calendar
10quarter, as provided by the council.
11b. 4. a. Upon request of the council, the secretary shall
12call a special referendum for producers to vote on whether to
13authorize an increase in the rate of assessment for direct use
14 to an amount that is more than two and one-half cents imposed
15on each thirty dozen eggs produced in this state.
16b. Upon request of the council, the secretary shall call
17a special referendum for producers to vote on whether to
18authorize an increase in the state assessment for clean water
19as established by the council not to exceed the rate of the
20assessment for direct use described in paragraph “a”.
21c. The secretary shall include as part of a special
22referendum to increase the rate of the assessment for direct
23use as described in paragraph “a”, a separate special question
24whether to increase the rate of the state assessment for clean
25water as described in paragraph “b”, if the secretary determines
26the inclusion of the special question is cost-effective or the
27request demands inclusion.
285. a. Notice of a special referendum described in
29subsection 4 shall be given and the special referendum shall be
30conducted in the manner provided in section 184.5.
31b. (1) If a majority of the producers voting approves the
32 an increase in the rate of the assessment for direct use, the
33council may increase the assessment for to the amount rate
34 approved. However, the The rate of the assessment for direct
35use shall not exceed fifteen cents imposed on each thirty dozen
-51-1eggs produced in this state.
2(2) If a majority of the producers voting approves an
3increase in the state assessment for clean water, the council
4shall increase the rate of the state assessment to a rate not
5to exceed the rate approved for the assessment for direct use
6as described in subparagraph (1).
72. 6. a. If the producer sells eggs to a purchaser outside
8the state of Iowa, the producer shall deduct the assessment for
9direct use from the amount received from the sale and shall
10forward the amount deducted to the council within thirty days
11following each calendar quarter.
12b. If the producer sells eggs to a purchaser outside the
13state of Iowa, the producer shall deduct the state assessment
14for clean water in the same manner as described in paragraph
15“a”.
167. If the producer and processor are the same person, then
17that person shall pay the assessment for direct use or the
18state assessment for clean water to the council within thirty
19days following each calendar quarter.
203. 8. The council may charge interest on any amount of the
21 an assessment for direct use or a state assessment for clean
22water that is delinquent. The rate of interest shall not be
23more than the current rate published in the Iowa administrative
24bulletin by the department of revenue pursuant to section
25421.7. The interest amount shall be computed from the date
26the assessment for direct use or a state assessment for clean
27water is delinquent, unless the council designates a later
28date. The interest amount shall accrue for each month in which
29there is delinquency calculated as provided in section 421.7,
30and counting each fraction of a month as an entire month. The
31interest amount due shall become a part of the assessment for
32direct use or a state assessment for clean water due.
33 Sec. 50. Section 184.4, subsection 1, paragraph e, Code
342022, is amended to read as follows:
35e. The rate of withholding and the total amount of
-52-1assessment for direct use and the state assessment for clean
2water withheld. The council may require the invoice to
3separately indicate the amount withheld for the assessment for
4direct use and for the state assessment for clean water.
5 Sec. 51. Section 184.5, Code 2022, is amended to read as
6follows:
7184.5 Referendums Special referendum conducted to abolish
8the council and terminate imposition of the assessment or state
9assessment.
101. a. A special referendum may be called to abolish the
11council and terminate the imposition of the assessment for
12direct use established pursuant to section 184.3 and any
13state assessment for clean water established pursuant to that
14section.
15b. A special referendum may be called to terminate the state
16assessment for clean water established pursuant to section
17184.3.
18c. The secretary shall include as part of a special
19referendum to abolish the council and terminate the assessment
20for direct use described in paragraph “a”, a separate special
21question whether to terminate the state assessment for clean
22water as described in paragraph “b”, if the secretary determines
23the inclusion of the special question is cost-effective or the
24request demands inclusion.
252. The secretary shall call, and the department shall
26conduct, the a special referendum described in subsection
271 upon the department’s receipt of a petition requesting
28the special referendum. The petition must be signed by at
29least twenty eligible voters or fifty percent of all eligible
30voters, whichever is greater. In order to be an eligible voter
31under this section, a producer must have paid an assessment
32for direct use established under section 184.3, and a state
33assessment for clean water if established under that section,
34 in the year of the special referendum. The special referendum
35shall be conducted within sixty days following receipt of the
-53-1petition. The petitioners shall guarantee payment of the cost
2of the special referendum by providing evidence of financial
3security as required by the department.
42. 3. The following procedures shall apply to a special
5 referendum conducted pursuant to this section:
6a. The department shall publish a notice of the special
7 referendum for a period of not less than five days in at least
8one newspaper of general circulation in the state. The notice
9shall state the voting places, period of time for voting,
10and other information deemed necessary by the department. A
11special referendum shall not be commenced until five days after
12the last date of publication.
13b. Upon signing a statement certifying to the secretary that
14the producer is an eligible voter, a producer is entitled to
15one vote in each special referendum conducted pursuant to this
16section. The department may conduct the special referendum
17by mail, electronic means, or a general meeting of eligible
18voters. The department shall conduct the special referendum
19and count and tabulate the ballots filed during the special
20 referendum within thirty days following the close of the
21special referendum.
22(1) c. If a majority of the total number of eligible
23voters who vote in the special referendum approve approves
24 the continuation of the council and the imposition of the
25 assessment for direct use, the council and the imposition of
26the assessment shall continue as provided in this chapter.
27d. If a majority of eligible voters who vote in the special
28referendum approves the continuation of the state assessment
29for clean water, the imposition of the state assessment shall
30continue for the same period as the assessment for direct use.
31(2) e. If a majority of the total number of eligible
32voters who vote in the special referendum held pursuant to
33this section do does not approve continuing the council and
34the imposition of the assessment for direct use, the secretary
35shall terminate the collection of the assessment for direct use
-54-1established pursuant to section 184.3 and the state assessment
2for clean water if established pursuant to that section, on
3the first day of the year for which the referendum was to
4continue. The secretary shall terminate the activities of the
5council in an orderly manner as soon as practicable after the
6determination is made. An additional initial referendum may be
7held as provided in conducted under section 184.2. However,
8the subsequent additional referendum shall not be held within
9 conducted for at least one hundred eighty days after the date
10that the last such special referendum was conducted.
11f. If a majority of the total number of eligible voters
12who vote in the special referendum does not approve continuing
13the state assessment for clean water, the secretary shall
14terminate the state assessment in an orderly manner as soon as
15practicable after the determination is made. An additional
16special referendum or an additional initial referendum that
17includes a separate special question to establish the state
18assessment for clean water may be conducted under section
19184.2. However, the subsequent special referendum or
20initial referendum shall not be conducted for at least one
21hundred eighty days after the date that the last such special
22referendum or initial referendum was conducted.
23 Sec. 52. Section 184.10, subsection 4, Code 2022, is amended
24to read as follows:
254. Enter into arrangements for the collection of the
26assessment for direct use and any state assessment for clean
27water.
28 Sec. 53. Section 184.10, Code 2022, is amended by adding the
29following new subsection:
30 NEW SUBSECTION. 8. Cooperate with the division of soil
31conservation and water quality of the department of agriculture
32and land stewardship in doing all of the following:
33a. Transferring moneys from the state assessment for clean
34water to the clean water fund created in section 466B.51.
35b. Being reimbursed for reasonable expenses incurred in
-55-1conducting an initial or special referendum to establish,
2continue, or terminate a state assessment for clean water.
3 Sec. 54. Section 184.13, Code 2022, is amended to read as
4follows:
5184.13 Administration of moneys.
61. Subject to the provisions of section 184.3, the
7assessment imposed by this chapter for direct use established
8pursuant to section 184.3, and the state assessment for
9clean water if established pursuant to that section, shall
10be remitted by the purchaser to the council not later than
11thirty days following each calendar quarter during which the
12assessment was collected.
132. Amounts Moneys collected from the assessment for direct
14use shall be deposited in the office of the treasurer of
15state in a separate fund to be known as the Iowa egg fund.
16The department of administrative services shall transfer
17moneys from the fund to the council for deposit into an
18account established by the council in a qualified financial
19institution. The department shall transfer the moneys as
20provided in a resolution adopted by the council. However, the
21department is only required to transfer moneys once during each
22day and only during hours when the offices of the state are
23open.
243. Moneys collected from a state assessment for clean
25water by the council may be deposited in a qualified financial
26institution and shall be transferred to the clean water fund
27created in section 466B.51.
28 Sec. 55. Section 184.14, Code 2022, is amended to read as
29follows:
30184.14 Use of moneys — appropriation — audit.
311. All moneys deposited in the Iowa egg fund and transferred
32to the council as provided in section 184.13 are appropriated
33and shall be used for the administration of this chapter and
34for the payment of claims based upon obligations incurred in
35the performance of activities and functions set forth in this
-56-1chapter.
22. a. Moneys collected, deposited in the fund, and
3transferred to the council as provided in this chapter are
4subject to audit by the auditor of state. The auditor of state
5may seek reimbursement for the cost of the audit. The moneys
6transferred to the council shall be used by the council first
7for the payment of collection expenses, second for payment of
8the costs and expenses arising in connection with conducting
9referendums, third to perform the functions and carry out the
10duties of the council as provided in this chapter, and fourth
11for the cost of audits by the auditor of state.
12b. Moneys The moneys remaining after the council is
13abolished and the imposition of an the assessment for direct
14use imposed pursuant to section 184.3 is terminated pursuant to
15a special referendum conducted pursuant to section 184.5 shall
16continue to be expended in accordance with this chapter until
17exhausted.
183. If the council is abolished and the assessment for direct
19use is terminated pursuant to a special referendum conducted
20under section 184.5, remaining moneys collected from the state
21assessment for clean water shall be transferred to the clean
22water fund created in section 466B.51. If the state assessment
23for clean water is terminated pursuant to a special referendum
24conducted under that section, remaining moneys collected from
25the state assessment shall be transferred to the clean water
26fund created in section 466B.51.
274. Except as expressly provided in this chapter, moneys
28collected from a state assessment for clean water shall not be
29used for any purpose other than to be transferred to the clean
30water fund created in section 466B.51.
31 Sec. 56. Section 184.18, Code 2022, is amended to read as
32follows:
33184.18 Purchasers outside Iowa.
34The secretary may enter into arrangements with purchasers
35from outside Iowa for payment of the assessment for direct use
-57-1and the state assessment for clean water.
2DIVISION VI
3IOWA TURKEY MARKETING COUNCIL
4 Sec. 57. Section 184A.1, Code 2022, is amended by adding the
5following new subsections:
6 NEW SUBSECTION. 1A. “Assessment” means an excise tax
7imposed on the sale of turkeys which may include an assessment
8for direct use and a state assessment for clean water.
9 NEW SUBSECTION. 2A. “Department” means the department of
10agriculture and land stewardship.
11 Sec. 58. Section 184A.1A, Code 2022, is amended to read as
12follows:
13184A.1A Referendum conducted to establish an Iowa turkey
14marketing council and impose an assessment Referendums and
15assessments — council established.
161. a. The department shall call and conduct a an initial
17 referendum upon the department’s receipt of a petition which
18is signed by at least twenty eligible voters requesting a
19 an initial referendum to determine whether to establish an
20Iowa turkey marketing council as provided in section 184A.1B
21and impose establish an assessment for direct use imposed as
22provided in section 184A.2.
23b. If a council is established, and upon receipt of a
24petition that otherwise complies with the requirements of
25subsection 1, the department shall call and conduct a special
26referendum to establish a state assessment for clean water as
27provided in section 184A.2.
28c. Upon receipt of a petition that otherwise complies with
29the requirements of subsection 1, the secretary shall include
30as part of the initial referendum a separate special question
31whether to establish a state assessment for clean water
32described in paragraph “b”, if the secretary determines the
33inclusion of the separate special question is cost-effective or
34the petition demands inclusion.
352. a. In order to be an eligible voter under this section,
-58-1a petitioner must be a qualified producer. The initial or
2special referendum shall be conducted by election within sixty
3days following receipt of the petition. The petitioners shall
4guarantee payment of the cost of the referendum by providing
5evidence of financial security as required by the department.
62. b. The department shall give provide notice of the
7 an initial referendum on the question whether to establish
8a council and to impose an assessment or special referendum
9 by publishing the notice for a period of not less than five
10days in at least one newspaper of general circulation in
11the state, and for a similar period in other newspapers as
12prescribed by the department. The notice shall state the
13voting places, period of time for voting, the manner of voting,
14the amount of the assessment for direct use or the amount of
15the state assessment for clean water, and other information
16deemed necessary by the department. A referendum or special
17referendum shall not be commenced until five days after the
18last date of publication.
193. a. c. Each eligible voter who signs a statement
20certifying that the eligible voter is a qualified producer
21shall be an eligible voter under this section. An eligible
22voter is entitled to cast one vote in each initial referendum
23or special referendum conducted under this section. The
24department may conduct the initial referendum or special
25referendum by mail, electronic means, or a general meeting of
26eligible voters.
27b. d. At the close of the initial referendum or special
28referendum, the department shall count and tabulate the ballots
29cast.
30(1) 3. a. If a majority of eligible voters who vote in
31the an initial referendum approve establishing the council and
32imposing an assessment for direct use under section 184A.2, a
33council and the assessment shall be established, and an the
34 assessment shall be imposed commencing not more than sixty days
35following the initial referendum as determined by the council.
-59-1The council and assessment for direct use shall continue for
2five years as provided in section 184A.12.
3b. If a majority of eligible voters who vote in a special
4referendum approve establishing a state assessment for clean
5water, the state assessment shall be imposed commencing not
6more than sixty days following the special referendum as
7determined by the council.
8(2) c. If a majority of eligible voters who vote in the an
9initial referendum do not approve establishing the council and
10imposing the an assessment for direct use, the council shall
11not be established and an assessment shall not be established
12and imposed until another initial referendum is held conducted
13 under this section and a majority of the eligible voters voting
14approve establishing a council and imposing the an assessment
15for direct use. If a an initial referendum should fail,
16another initial referendum shall not be held within conducted
17for at least one hundred eighty days from the date of the last
18such initial referendum.
19d. If a majority of the voters do not approve establishing
20a state assessment for clean water, the state assessment shall
21not be established and imposed until the question is approved
22at a special referendum or as part of an initial referendum
23conducted pursuant to this section. If a special referendum
24or an initial referendum which includes the question whether
25to establish a state assessment should fail, the special
26referendum or an initial referendum which includes the question
27shall not be conducted for at least one hundred eighty days
28from the date of the last such special referendum or initial
29referendum which included the separate special question.
304. Within thirty days after approval at the initial
31 referendum to establish a council and to impose an assessment
32for direct use, the department shall organize the council as
33provided in section 184A.1B.
34 Sec. 59. Section 184A.1C, subsection 4, Code 2022, is
35amended to read as follows:
-60- 14. Enter into arrangements for the collection, and deposit,
2and use of the assessment for direct use or the collection,
3deposit, and transfer of the state assessment for clean water
4as provided in this chapter.
5 Sec. 60. Section 184A.1C, Code 2022, is amended by adding
6the following new subsection:
7 NEW SUBSECTION. 7. Cooperate with the division of soil
8conservation and water quality of the department of agriculture
9and land stewardship in doing all of the following:
10a. Transferring moneys collected from the state assessment
11for clean water to the clean water fund created in section
12466B.51.
13b. Being reimbursed for reasonable expenses incurred in
14conducting an initial or special referendum to establish,
15continue, or terminate a state assessment for clean water.
16 Sec. 61. Section 184A.2, Code 2022, is amended to read as
17follows:
18184A.2 Assessment Assessments — direct use — clean water.
191. If an assessment for direct use or a state assessment for
20clean water is approved by a majority of the eligible voters
21voting at a an initial referendum or special referendum as
22provided in section 184A.1A or 184A.12, all of the following
23shall apply:
24a. The assessment for direct use or the state assessment
25for clean water shall be imposed on each turkey delivered for
26processing.
27b. (1) The council shall establish a rate of the
28 assessment for direct use and the state assessment for
29clean water for each turkey delivered for processing. The
30council may establish different rates based on attributes or
31characteristics of turkeys. However, a rate shall not be more
32than three cents for each turkey delivered for processing.
33(2) The rate of the state assessment for clean water shall
34be established by the council at a rate not to exceed the
35assessment for direct use as described in subparagraph (1) in
-61-1effect when the referendum establishing the state assessment
2passes.
3c. The assessment for direct use or the state assessment
4for clean water shall be imposed on the producer and collected
5at the time of delivery of a turkey to the processor. The
6assessment for direct use and the state assessment for clean
7water shall be deducted by the processor at the time of
8delivery from the price paid to the producer at the time of the
9sale to the processor.
10d. A processor shall remit assessments moneys collected from
11the assessment for direct use or the state assessment for clean
12water to the council on a monthly basis as provided by the
13council. The council shall deposit the remitted assessments
14 moneys collected from the assessment for direct use in the Iowa
15turkey fund as provided in section 184A.4. The council shall
16transmit moneys collected from the state assessment for clean
17water to the clean water fund created in section 466B.51.
182. The council may enter into agreements with processors
19from outside this state for the payment of the assessment for
20direct use and the state assessment for clean water.
213. a. The council shall provide for a refund of an
22assessment for direct use, and of a state assessment for
23clean water if established, according to rules adopted by the
24council.
25b. The council shall publish and disseminate applications
26for refunds. An application shall allow the applicant to elect
27whether the refund is for the assessment for direct use or a
28state assessment for clean water or both. The council shall
29not approve an application unless the application indicates the
30election.
31c. The council shall transmit any approved application for a
32refund of the state assessment for clean water to the division
33of soil conservation and water quality of the department of
34agriculture and land stewardship which shall pay a refund to
35the producer in the same manner as the council pays a refund to
-62-1the producer under paragraph “a”.
2 Sec. 62. Section 184A.3, Code 2022, is amended to read as
3follows:
4184A.3 Assessment documentation Assessments — documentation.
5A processor receiving turkeys for slaughter shall do all of
6the following:
71. At the time of payment to the producer, the processor
8shall sign and submit a receipt to the producer which includes
9the rate of the assessment for direct use imposed and the
10rate of the state assessment for clean water imposed and the
11amount of the assessment and state assessment for all turkeys
12delivered for processing.
132. Within a period established by rules adopted by the
14council, the processor shall regularly sign and submit to the
15council an invoice or other records required by the council to
16expedite collection of the assessment for direct use and the
17state assessment for clean water. The council may require that
18the processor submit a separate invoice for each purchase. The
19invoice shall be legibly printed and shall not be altered. An
20invoice shall include all of the following:
21a. The name and address of the producer and the seller, if
22the seller’s name is different from the producer.
23b. The name and address of the processor.
24c. The number of turkeys sold.
25d. The date of the delivery.
263. The council shall require the invoice to separately
27indicate the amount withheld for the assessment for direct use
28and the state assessment for clean water.
29 Sec. 63. Section 184A.4, Code 2022, is amended to read as
30follows:
31184A.4 Administration of moneys.
321. a. The assessments Moneys from the assessment for direct
33use collected by the council as provided in section 184A.2
34shall be deposited in the office of the treasurer of state in
35a special fund known as the Iowa turkey fund. The department
-63-1of administrative services shall transfer moneys from the
2fund to the council for deposit into the turkey council
3account established by the council pursuant to this section.
4The department shall transfer the moneys as provided in a
5resolution adopted by the council. However, the department is
6only required to transfer moneys once during each day and only
7during hours when the offices of the state are open.
82. b. The council shall establish a turkey council
9account in a qualified financial institution. The council
10shall provide for the deposit of all of the following into the
11account:
12a. (1) The assessment for direct use collected, deposited
13in the Iowa turkey fund, and transferred to the council as
14provided in this section.
15b. (2) Moneys, other than assessments moneys collected from
16the state assessment for clean water, but including moneys in
17the form of gifts, rents, royalties, or license fees received
18by the council pursuant to section 184A.1C.
192. Except as expressly provided in this chapter, moneys
20collected from the state assessment for clean water under this
21section shall not be used for any purpose other than to be
22transferred to the clean water fund created in section 466B.51.
23 Sec. 64. Section 184A.6, Code 2022, is amended to read as
24follows:
25184A.6 Use of moneys in turkey council account.
261. All moneys deposited in the turkey council account
27pursuant to section 184A.4 shall be used by the council for
28purposes of administering this chapter.
292. The council shall expend moneys from deposited in the
30turkey council account first for the payment of expenses for
31the collection of assessments moneys from the assessment for
32direct use and the state assessment for clean water, second
33for the payment of expenses related to conducting a special
34 referendum as provided in conducted under section 184A.12,
35and third for the cost of performing audits by the auditor of
-64-1state as required in section 184A.9. The council shall expend
2remaining moneys for market development, producer education,
3and the payment of refunds to producers as provided in this
4chapter.
5 Sec. 65. Section 184A.10, Code 2022, is amended to read as
6follows:
7184A.10 Referendum Referendums.
8Upon receipt of a petition signed by at least twenty-five
9producers requesting an initial referendum election to
10determine whether to impose the fee assessment for direct use
11 as provided in section 184A.2, and to establish a council as
12provided in chapter 184A, the secretary shall call and conduct
13an initial referendum.
14 Sec. 66. Section 184A.12, Code 2022, is amended to read as
15follows:
16184A.12 Referendum Special referendum conducted to continue
17the council and the imposition of the assessment establishment
18of assessments.
191. a. The council shall call for and conduct a special
20 referendum to continue the council established pursuant to
21section 184A.1A, and to continue the assessment for direct use
22 established pursuant to section 184A.2. The council shall call
23and conduct the referendum by election as provided in this
24section.
25b. The council shall call for and conduct a special
26referendum to continue the state assessment for clean water
27if established pursuant to section 184A.1A. The council may
28include as part of the special referendum to continue the
29council and the assessment for direct use under paragraph “a”,
30a separate special question whether to continue the state
31assessment for clean water.
322. The department shall oversee the conduct of the special
33 referendum. The special referendum shall be conducted in
34the fifth year following the initial referendum establishing
35the council and the assessment for direct use as provided in
-65-1section 184A.10.
22. 3. The following procedures shall apply to a special
3 referendum conducted pursuant to this section:
4a. The council shall publish a notice of the special
5 referendum for a period of not less than five days in at least
6one newspaper of general circulation in the state and for
7a similar period in other newspapers as prescribed by the
8council. The notice shall state the voting places, period of
9time for voting, manner of voting, and other information deemed
10necessary by the council. A referendum shall not be commenced
11until five days after the last date of publication.
12b. Upon signing a statement certifying to the council that
13a producer is an eligible voter, the producer is entitled to
14one vote in each special referendum conducted pursuant to
15this section. In order to be an eligible voter under this
16section, a producer must be a qualified producer who paid an
17 the assessment for direct use and the state assessment for
18clean water, if established, in the year in which the special
19 referendum is held conducted. The council may conduct the
20special referendum by mail, electronic means, or a general
21meeting of eligible voters. The council shall conduct the
22special referendum and count and tabulate the ballots filed
23during the special referendum within thirty days following the
24close of the special referendum.
25(1) c. If a majority of eligible voters who vote in the
26special referendum approves the continuation of continuing the
27council and the imposition of the assessment for direct use,
28the council and the imposition of the assessment shall continue
29as provided in this chapter.
30d. If a majority of eligible voters who vote in the special
31referendum approves continuing the state assessment for clean
32water, the imposition of the state assessment shall continue
33for the same period as the assessment for direct use.
34(2) e. If a majority of eligible voters who vote in the
35special referendum does not approve continuing the council and
-66-1the imposition of the assessment for direct use, the department
2shall terminate the collection of the assessment for direct
3use and the state assessment for clean water if established.
4The termination shall occur on the first day of the year for
5which the special referendum was to continue. The department
6shall terminate the activities of the council in an orderly
7manner as soon as practicable after the date that the special
8 referendum was conducted. A subsequent initial referendum may
9be held conducted as provided in section 184A.1A. However,
10the subsequent initial referendum shall not be held within
11 conducted for at least one hundred eighty days from the date of
12 that the last special referendum was conducted.
13f. If a majority of eligible voters who vote in the special
14referendum does not approve continuing the state assessment
15for clean water, the department shall terminate the state
16assessment in the same manner as described in paragraph “e”. A
17subsequent special referendum to establish a state assessment
18for clean water may be conducted as provided in section
19184A.1A. However, the subsequent special referendum shall not
20be conducted for at least one hundred eighty days from the date
21that the last special referendum was conducted.
22 Sec. 67. Section 184A.12A, Code 2022, is amended to read as
23follows:
24184A.12A Referendum Special referendum conducted to abolish
25the council and terminate the imposition of the assessment
26 assessments.
271. a. A The department may call and conduct a special
28 referendum may be called to abolish the council established
29pursuant to sections section 184A.1A, and 184A.1B, and to
30terminate the imposition of the assessment for direct use
31 established pursuant to section 184A.2, and to terminate the
32state assessment for clean water if established pursuant to
33section 184A.2.
34b. The department shall call and conduct, as provided in
35subsection 3, a special referendum to terminate the state
-67-1assessment for clean water if established pursuant to section
2184A.2.
32. The department shall call and conduct the special
4 referendum upon the department’s receipt of a petition
5requesting the special referendum. The petition must be
6signed by at least twenty eligible voters or fifty percent
7of all eligible voters, whichever is greater. In order to
8be an eligible voter under this section, a producer must be
9a qualified producer who paid an the assessment for direct
10use and any state assessment for clean water in the year in
11which the special referendum is held conducted. The special
12 referendum shall be conducted by election within sixty days
13following receipt of the petition. The petitioners shall
14guarantee payment of the cost of the special referendum by
15providing evidence of financial security as required by the
16department.
172. 3. The following procedures shall apply to a special
18 referendum conducted pursuant to this section:
19a. The department shall publish a notice of the special
20 referendum for a period of not less than five days in at least
21one newspaper of general circulation in the state and for
22a similar period in other newspapers as prescribed by the
23department. The notice shall state the voting places, period
24of time for voting, manner of voting, and other information
25deemed necessary by the department. A special referendum
26shall not be commenced until five days after the last date of
27publication.
28b. Upon signing a statement certifying to the department
29that a producer is an eligible voter, the producer is entitled
30to one vote in each special referendum conducted pursuant
31to this section. The department may conduct the special
32 referendum by mail, electronic means, or a general meeting of
33eligible voters. The department shall conduct the special
34 referendum and count and tabulate the ballots filed during the
35special referendum within thirty days following the close of
-68-1the special referendum.
2(1) c. If a majority of eligible voters who vote in the
3special referendum approves fails to approve the continuation
4of the council and the imposition of the assessment
5 termination, the council and the imposition of the direct
6 assessment shall continue as provided in this chapter.
7d. If a majority of eligible voters who vote in the special
8referendum fails to approve the termination of the council and
9direct assessment and also fails to approve the termination of
10state assessment for clean water, the state assessment shall
11continue for the same period as the assessment for direct use.
12(2) e. If a majority of eligible voters who vote in the
13special referendum does not approve continuing approves the
14termination of the council and the imposition of the assessment
15for direct use, the department shall terminate the collection
16of the assessment for direct use and any state assessment for
17clean water on the first day of the year for which the special
18 referendum was to continue. The department shall terminate
19the activities of the council in an orderly manner as soon
20as practicable after the special referendum. A subsequent
21initial referendum may be held conducted as provided in section
22184A.1A. However, the subsequent initial referendum shall
23not be held within conducted for at least one hundred eighty
24days from the date of that the last special referendum was
25conducted.
26DIVISION VII
27IOWA SOYBEAN ASSOCIATION
28 Sec. 68. Section 185.1, subsection 17, Code 2022, is amended
29to read as follows:
3017. “State assessment” or “assessment” means an excise tax
31on each bushel of soybeans marketed in this state which is
32imposed pursuant to a any of the following:
33a. A state assessment for direct use pursuant to a
34promotional order as provided in this chapter.
35b. A state assessment for clean water as provided in this
-69-1chapter.
2 Sec. 69. Section 185.1A, Code 2022, is amended to read as
3follows:
4185.1A Recognition of Iowa soybean association.
51. The corporation known as the Iowa soybean association
6incorporated under the laws of this state shall be entitled
7to the benefits of this chapter by filing each year with the
8secretary a verified proof of its organization, the names
9of its officers, and any other information required by the
10secretary.
112. The Iowa soybean association is a qualified state soybean
12board for purposes of administering a national assessment.
13For purposes of this chapter, “association” shall include a
14successor qualified state soybean board or other entity that is
15recognized by federal law to administer the national assessment
16in Iowa.
17 Sec. 70. Section 185.2, Code 2022, is amended to read as
18follows:
19185.2 Petition for election Referendums.
201. Upon receipt of a petition signed by at least five
21hundred producers requesting an initial referendum election
22 to determine whether a promotional order shall be placed in
23effect, the secretary shall call an the initial referendum
24election to be conducted within sixty days following receipt
25of the petition. Producers shall vote by written ballot in
26the manner provided by this chapter for an initial referendum
27elections.
282. If a promotional order is placed in effect, and
29upon receipt of a petition that otherwise complies with the
30requirements of this section, the secretary shall conduct a
31special referendum to establish a state assessment for clean
32water. The special referendum shall be conducted in the same
33manner as an initial referendum described in subsection 1.
343. Upon receipt of a petition that otherwise complies with
35the requirements of this section, the secretary shall include
-70-1as part of the initial referendum a separate special question
2whether to establish and impose a state assessment for clean
3water described in this section, if the secretary determines
4the inclusion of the special question is cost-effective or the
5petition demands inclusion.
6 Sec. 71. Section 185.11, Code 2022, is amended by adding the
7following new subsection:
8 NEW SUBSECTION. 5. Cooperate with the division of soil
9conservation and water quality of the department of agriculture
10and land stewardship in doing all of the following:
11a. Transferring moneys collected from the state assessment
12for clean water to the clean water fund created in section
13466B.51.
14b. Being reimbursed for reasonable expenses incurred in
15conducting an initial or special referendum to establish,
16continue, or terminate a state assessment for clean water.
17 Sec. 72. Section 185.13, subsection 4, Code 2022, is amended
18to read as follows:
194. Enter into arrangements for collection of the state
20assessment for direct use and any state assessment for clean
21water imposed on soybeans marketed in this state.
22 Sec. 73. Section 185.16, Code 2022, is amended to read as
23follows:
24185.16 Notice of referendum.
251. Notice of a referendum election to initiate or extend a
26promotional order shall be given by publication in a newspaper
27of general circulation in this state at least ten days prior
28to the date of the referendum and in any other reasonable
29manner as may be determined by the secretary for the initial
30referendum and by the board for extension of the promotional
31order.
322. Notice of a special referendum to establish or continue
33a state assessment for clean water shall be given in the same
34manner as described in subsection 1.
35 Sec. 74. Section 185.17, Code 2022, is amended to read as
-71-1follows:
2185.17 Contents of notice.
3The A notice of referendum described in section 185.16 shall
4set forth the period of time for voting, voting places and such
5other information as the secretary may deem necessary in an
6initial referendum or special referendum. The board shall make
7such determinations in any subsequent initial referendum or
8special referendum.
9 Sec. 75. Section 185.18, Code 2022, is amended to read as
10follows:
11185.18 Counting.
12At the close of a referendum voting period, the secretary
13shall count and tabulate the ballots cast during the referendum
14 period of the initial referendum or special referendum.
15 Sec. 76. Section 185.20, Code 2022, is amended to read as
16follows:
17185.20 Producers only to vote.
18Only producers are eligible to vote in an election for
19directors or a, an initial referendum election, or a special
20referendum, and only in the district in which they reside.
21A producer shall sign an affidavit at the time of voting
22certifying the producer’s eligibility to vote. Each qualified
23producer shall be entitled to one vote.
24 Sec. 77. Section 185.21, Code 2022, is amended to read as
25follows:
26185.21 Assessment State assessments — rates.
271. A state assessment which for direct use that is adopted
28 established upon the initiation of a promotional order shall
29be collected imposed during the effective period of the
30promotional order, and shall be of no force or effect upon
31termination of the promotional order.
322. a. The state assessment for direct use collected as part
33of a promotional order shall be paid into the soybean promotion
34fund established in section 185.26.
35b. The state assessment for clean water if established
-72-1pursuant to section 185.2 or continued pursuant to section
2185.25 shall be collected by the board and may be deposited
3in a qualified financial institution until transferred to the
4clean water fund created in section 466B.51.
53. The rate of the state assessment for direct use
6established as part of a promotional order shall be imposed as
7follows:
8a. If the national assessment is being collected, the rate
9of the state assessment for direct use shall be one-quarter of
10one percent of the net market price of the soybeans marketed
11in this state.
12b. If the national assessment is not being collected, the
13rate of the state assessment for direct use shall be one-half
14of one percent of the net market price of soybeans marketed in
15this state.
164. The rate of the state assessment for clean water shall
17be imposed as follows:
18a. If the national assessment is being collected, the rate
19of the state assessment for clean water shall be established
20by the board at a rate not to exceed the combined rate of the
21state assessment for direct use and the national assessment as
22described in subsection 3, paragraph “a”.
23b. If the national assessment is not being collected,
24the rate of the state assessment for clean water shall be
25established by the board at a rate not to exceed the rate of
26the state assessment for direct use as described in subsection
273, paragraph “b”.
28 Sec. 78. Section 185.22, Code 2022, is amended to read as
29follows:
30185.22 Promotional order Invoice.
311. After a promotional order has been issued, the first
32purchaser at the time of payment for soybeans shall show the
33total amount of the state assessment for direct use, and any
34state assessment for clean water, deducted from the sale on the
35purchase invoice.
-73- 12. The board shall require the invoice to separately
2indicate the amount withheld for the state assessment for
3direct use and the state assessment for clean water. The board
4may require a separate invoice for the state assessment for
5clean water. An invoice may correspond to any invoice required
6to collect the national assessment.
7 Sec. 79. Section 185.23, Code 2022, is amended to read as
8follows:
9185.23 Deduction of assessment.
10The state assessment for direct use and any state assessment
11for clean water shall be deducted from the purchase price of
12soybeans at the time of sale, and forwarded to the board by the
13first purchaser in the manner and at intervals determined by
14the board.
15 Sec. 80. Section 185.24, Code 2022, is amended to read as
16follows:
17185.24 Termination of a promotional order.
181. If a promotional order is not extended as determined
19by a special referendum, the secretary and the board shall
20terminate the promotional order in an orderly manner as soon
21as practicable. The termination of the promotional order
22shall terminate the state assessment for direct use. After
23all moneys collected from the state assessment for direct use
24 are expended, the board shall remain in existence as provided
25in its articles of incorporation or bylaws. The directors
26shall no longer be elected as required in this chapter. The
27ex officio directors shall no longer serve on the board. The
28board shall cease to administer this chapter, and the board
29shall no longer carry out its duties or exercise its powers
30as provided in this chapter. However, if a future initial
31 referendum passes, the board shall be reorganized by the
32secretary and the directors then serving on the board shall be
33deemed to be the same directors who served on the board when
34the promotional order was terminated. The directors shall
35serve out their terms as though there had been no lapse of time
-74-1between the two effective orders.
22. The termination of the promotional order shall terminate
3the state assessment for clean water. The board shall transfer
4any remaining moneys collected from the state assessment for
5clean water to the clean water fund created in section 466B.51.
6 Sec. 81. Section 185.25, Code 2022, is amended to read as
7follows:
8185.25 Special referendum referendums — producer petition
9 petitions.
101. a. Upon receipt of a petition, the secretary shall call
11a special referendum to extend the promotional order including
12continuing the state assessment for direct use as part of the
13promotional order.
14b. Upon receipt of a petition, the secretary shall call a
15special referendum to continue the state assessment for clean
16water.
17c. The secretary shall include as part of the special
18referendum described in paragraph “a” a separate special
19question described in paragraph “b” whether to continue the
20state assessment for clean water, if the secretary determines
21the inclusion of the special question is cost-effective or the
22petition demands inclusion.
232. The secretary shall call the special referendumnot
24less than one hundred fifty nor more than two hundred forty
25days from a four-year anniversary of the effective date of an
26initial promotional order, if the petition is signed within
27that same period by a number of producers equal to or greater
28than one percent of the number of producers reported in the
29most recent United States census of agriculture, requesting
30a referendum to determine whether to extend the promotional
31order, the. The secretary shall call a conduct the special
32 referendum to be conducted not earlier than thirty days before
33the four-year anniversary date.
343. a. If the secretary determines that extension of the
35promotional order is not favored approved by a majority of the
-75-1producers voting in the special referendum, the promotional
2order shall be terminated as provided in section 185.24. The
3state assessment for clean water if established shall also
4be terminated. If the promotional order is terminated under
5this paragraph, another a succeeding referendum to recommence
6the promotional order shall not be held within conducted for
7at least one hundred eighty days after the date that the most
8recent special referendum was conducted.
9b. If the secretary determines that the state assessment
10for clean water is not approved by a majority of the producers
11voting in the special referendum, that state assessment shall
12be terminated as provided in section 185.24. If the state
13assessment for clean water is terminated under this paragraph,
14another special referendum establishing the state assessment
15for clean water or another succeeding referendum to recommence
16the promotional order that includes a separate special question
17to establish the state assessment for clean water shall not
18be conducted for at least one hundred eighty days after the
19date that the last special referendum terminating the state
20assessment for direct use was conducted.
214. a. A succeeding referendum to recommence the promotional
22order shall be called by the secretary upon the petition of a
23number of producers equal to or greater than one percent of the
24number of producers reported in the most recent United States
25census of agriculture requesting a the referendum, who shall
26guarantee the costs of the referendum.
27b. Upon receipt of a petition meeting the requirements of
28paragraph “a”, the secretary shall call a special referendum to
29restore the state assessment for clean water.
30c. The secretary shall include as part of the succeeding
31referendum described in paragraph “a” a special question
32described in paragraph “b” whether to restore the state
33assessment for clean water, if the secretary determines the
34inclusion of the special question is cost-effective or the
35petition demands the inclusion.
-76- 12. 5. a. If no valid petition to extend the promotional
2order is received by the secretary within the time period
3described in subsection 1 2, or if a petition is received but
4the special referendum to extend the promotional order passes
5 is approved, the promotional order shall continue in effect for
6four additional years from the anniversary of its effective
7date.
8b. If no valid petition for a special referendum to
9continue the state assessment for clean water is received by
10the secretary within the time period described in subsection 2,
11or if the continuation of state assessment for clean water is
12approved, that state assessment shall continue in effect for
13four additional years from the anniversary of the effective
14date of the promotional order.
15 Sec. 82. NEW SECTION. 185.25A Special referendum — change
16in state assessment rate for clean water.
171. If a national assessment is imposed and upon receipt
18of a petition that otherwise complies with the requirements
19of section 185.25, the secretary shall conduct a special
20referendum to change the rate of the state assessment for
21clean water established by the board at a rate not to exceed
22the combined rate of the national assessment and the state
23assessment for direct use as provided in section 185.21,
24subsection 3, paragraph “a”. The special referendum shall be
25conducted in the same manner as a special referendum conducted
26pursuant to section 185.25. However, the special referendum
27may be conducted in the same manner and in conjunction with a
28referendum to change the rate of the national assessment, to
29the extent permitted by federal law.
302. If a national assessment is not imposed and upon receipt
31of a petition that otherwise complies with the requirements
32of section 185.25, the secretary shall conduct a special
33referendum to change the rate of the state assessment for clean
34water established by the board to a rate not to exceed the rate
35of the state assessment for direct use as provided in section
-77-1185.21, subsection 3, paragraph “b”. The special referendum
2shall be conducted in the same manner as a special referendum
3conducted pursuant to section 185.25.
43. If a special referendum or special question to change the
5rate of the state assessment for clean water is not approved,
6the result of the vote shall not affect the existence or period
7during which that state assessment is in effect.
8 Sec. 83. Section 185.26, Code 2022, is amended to read as
9follows:
10185.26 Administration of moneys.
111. a. The Moneys from a state assessment for direct use
12imposed as part of a promotional order and collected by the
13board shall be deposited in a special fund known as the soybean
14promotion fund, in the office of the treasurer of state. The
15fund may also contain include any gifts or federal or state
16grant received by the board. Moneys The moneys collected,
17deposited into the fund, and transferred to the board, as
18provided in this chapter, shall be subject to audit by the
19auditor of state.
20b. The department of administrative services shall
21transfer moneys from the fund to the board for deposit into an
22account known as the soybean checkoff account which shall be
23established by the board in a qualified financial institution.
24The department shall transfer the moneys into the account as
25provided in a resolution adopted by the board. However, the
26department is only required to transfer moneys once during each
27day and only during hours when the offices of the state are
28open.
29c. From moneys collected, deposited, and transferred to
30the soybean checkoff account as provided in this section, the
31board shall first pay the costs of referendums, elections, and
32other expenses incurred in the administration of this chapter,
33before moneys may be expended to carry out the purposes of the
34board as provided in section 185.11. The board shall strictly
35segregate moneys in the soybean checkoff account from all other
-78-1moneys of the board. Moneys in the soybean checkoff account
2shall be expended by the board exclusively for carrying out
3the purposes of the board as provided in section 185.11. The
4account shall be subject to audit by the auditor of state.
52. Moneys from a state assessment for clean water collected
6by the board may be deposited in a qualified financial
7institution and shall be transferred to the clean water fund
8created in section 466B.51.
92. 3. The fiscal year of the association shall commence on
10October 1 and end on September 30.
11 Sec. 84. Section 185.27, Code 2022, is amended to read as
12follows:
13185.27 Refund of assessment.
141. a. A producer who has sold soybeans and had the state
15assessment for direct use deducted from the sale price may, by
16application in writing to the board, secure a refund in the
17amount deducted. The refund shall be payable only when the
18application is made to the board within sixty days after the
19deduction.
20b. A producer who has sold soybeans and had the state
21assessment for clean water deducted from the sale price may,
22by application in writing to the board, secure a refund of the
23amount deducted payable by the division of soil conservation
24and water quality of the department of agriculture and land
25stewardship. The board shall forward approved applications to
26the division within sixty days after the deduction.
272. Application forms shall be given by the board to
28each first purchaser when requested and the first purchaser
29shall make the applications available to any producer. Each
30application for refund by a producer shall have attached
31thereto proof of assessment deducted. The proof of assessment
32may be in the form of a duplicate or certified copy of the
33purchase invoice by the first purchaser. The board shall
34have thirty days from the date the application for refund is
35received to remit the refund to the producer. The form shall
-79-1allow the applicant to elect whether the refund is for the
2state assessment for direct use or for the state assessment
3for clean water or both. The board shall not approve an
4application unless the application indicates the election.
5 Sec. 85. Section 185.28, Code 2022, is amended to read as
6follows:
7185.28 Use of moneys — appropriation.
81. All moneys collected, deposited, and transferred to the
9board as provided in this chapter, are appropriated and shall
10be used for the administration of this chapter by the board and
11for the payment of claims by the board based upon obligations
12incurred in the performance of board activities and functions
13provided in this chapter.
142. Except as expressly provided in this chapter, moneys
15collected from the state assessment for clean water under this
16section shall not be used for any purpose other than to be
17transferred to the clean water fund created in section 466B.51.
18 Sec. 86. Section 185.29, Code 2022, is amended to read as
19follows:
20185.29 Remission of remaining moneys.
211. After the board has paid the costs of elections,
22referendum, necessary board expenses, and administrative costs,
23the remaining moneys collected, deposited in the soybean
24promotion fund, and transferred to the soybean checkoff account
25as provided in section 185.26 shall be expended by the board as
26is necessary to carry out its purposes as provided in section
27185.11.
282. Notwithstanding subsection 1, moneys collected from
29a state assessment for clean water by the board shall be
30transferred to the clean water fund created in section 466B.51.
31 Sec. 87. Section 185.33, Code 2022, is amended to read as
32follows:
33185.33 Report.
34The board shall each year prepare and submit a report
35summarizing the activities of the board under this chapter to
-80-1the auditor of state and the secretary of agriculture. The
2report shall show all income, expenses, and other relevant
3information concerning fees state assessments for direct use
4 collected and expended under the provisions of this chapter.
5DIVISION VIII
6IOWA CORN PROMOTION BOARD
7 Sec. 88. Section 185C.1, subsection 17, Code 2022, is
8amended to read as follows:
917. “State assessment” means a state excise tax on each
10bushel of corn marketed in this state which is imposed as part
11of a promotional order to administer this chapter pursuant to a
12state assessment for direct use or a state assessment for clean
13water.
14 Sec. 89. Section 185C.2, Code 2022, is amended to read as
15follows:
16185C.2 Petition for election Referendums.
171. Upon receipt of a petition signed by at least five
18hundred producers requesting an initial referendum election
19 to determine whether a promotional order shall be placed in
20effect, the secretary shall call an initial referendum election
21 to be conducted within sixty days following receipt of the
22petition. Producers shall vote by written ballot in the manner
23provided by this chapter for a referendum elections to approve
24the placement in effect of a promotional order.
252. a. If a promotional order is placed in effect, a state
26assessment for direct use shall be established.
27b. If a promotional order is placed in effect, and upon
28receipt of a petition that otherwise complies with the
29requirements of subsection 1, the secretary shall conduct a
30special referendum to establish a state assessment for clean
31water.
32c. Upon receipt of a petition that otherwise complies with
33the requirements of subsection 1, the secretary shall include
34as part of the initial referendum a separate special question
35whether to establish a state assessment for clean water, as
-81-1described in paragraph “b”, if the secretary determines the
2inclusion of the special question is cost-effective or the
3petition demands inclusion.
4 Sec. 90. Section 185C.3, Code 2022, is amended to read as
5follows:
6185C.3 Establishment of corn promotion board.
7If a majority of the producers voting in the an initial
8 referendum election conducted pursuant to section 185C.2
9 approve the passage of the promotional order, an Iowa corn
10promotion board shall be established.
11 Sec. 91. Section 185C.11, subsection 1, Code 2022, is
12amended by adding the following new paragraph:
13 NEW PARAGRAPH. j. Cooperate with the division of soil
14conservation and water quality of the department of agriculture
15and land stewardship in doing all of the following:
16(1) Transferring moneys collected from the state assessment
17for clean water to the clean water fund created in section
18466B.51.
19(2) Being reimbursed for reasonable expenses incurred
20in conducting an initial or special referendum to establish,
21continue, or terminate a state assessment for clean water.
22 Sec. 92. Section 185C.11A, Code 2022, is amended by adding
23the following new subsection:
24 NEW SUBSECTION. 5. The board shall not expend moneys
25collected from the state assessment for clean water to support
26the program.
27 Sec. 93. Section 185C.15, Code 2022, is amended to read as
28follows:
29185C.15 Term of promotional order — automatic extension.
30A promotional order shall be effective for four years from
31its effective date. Upon the date that an the promotional
32 order is due to expire the order shall automatically be
33extended for an additional four years from the date that the
34order or last extension would otherwise expire, except as
35provided in section 185C.24. A state assessment for clean
-82-1water shall continue for the same period as the promotional
2order unless the state assessment for clean water is terminated
3as provided in section 185C.24.
4 Sec. 94. Section 185C.21, Code 2022, is amended to read as
5follows:
6185C.21 State assessment assessments — rates.
71. The board shall determine and set the rate of the state
8assessment rate for direct use as part of the promotional
9order. State assessments A state assessment for direct use
10 collected pursuant to the promotional order shall be paid
11into the corn promotion fund established in section 185C.26.
12Except as provided in subsection 2 subsections 2 and 3, a state
13assessment for direct use shall not exceed one-quarter of one
14cent per bushel upon corn marketed in this state.
152. Upon request of the board, the secretary shall call
16a special referendum for producers to vote on whether to
17authorize an increase in the rate of the state assessment
18for direct use above one-quarter of one cent per bushel,
19notwithstanding subsection 1. The special referendum shall be
20conducted as provided in this chapter for referendum elections
21 referendums. However, the special referendum shall not affect
22the existence or length of the promotional order in effect. If
23a majority of the producers voting in the special referendum
24approve the increase, the board may increase the state
25 assessment for direct use to the amount approved in the special
26referendum. The board shall establish the effective date of
27a rate change. However, the rate of a state assessment for
28direct use shall not exceed a scheduled maximum rate determined
29as follows:
30a. Before September 1, 2014, one cent.
31b. For each marketing year of the period beginning September
321, 2014, and ending August 31, 2019, two cents.
33c. For each marketing year beginning on and after September
341, 2019, three cents.
353. The rate of the state assessment for clean water shall
-83-1be established by the board not to exceed the rate of the
2state assessment for direct use in effect on the date that the
3special referendum establishing the state assessment for clean
4water is approved.
54. a. Upon request of the board, the secretary shall
6call a special referendum for producers to vote on whether to
7authorize an increase in the state assessment for clean water
8to be established by the board at a rate not to exceed the
9rate of the state assessment for direct use in effect under
10subsection 2. The special referendum shall be conducted in the
11same manner as provided in that subsection.
12b. Upon request of the board, the secretary shall include,
13as part of the special referendum conducted under subsection
142, a separate special question whether to increase the rate
15of the state assessment for clean water to be established by
16the board at a rate not to exceed the rate of the proposed
17increased amount of the state assessment for direct use, if the
18secretary determines the inclusion of the special question is
19cost-effective or the request demands inclusion.
20 Sec. 95. Section 185C.22, Code 2022, is amended to read as
21follows:
22185C.22 State assessment assessments on purchase invoice.
231. After a promotional order has been issued, the first
24purchaser at the time of payment for corn shall show the
25total amount of state assessment for direct use and the state
26assessment for clean water deducted from the sale on the
27purchase invoice.
282. The board shall require the invoice to separately
29indicate the amount withheld for the state assessment for
30direct use and the state assessment for clean water. The board
31may require a separate invoice for the state assessment for
32clean water. An invoice may correspond to any invoice required
33to collect the federal assessment pursuant to section 185C.25A.
34 Sec. 96. Section 185C.24, Code 2022, is amended to read as
35follows:
-84- 1185C.24 Cancellation, and suspension, and termination.
21. The board shall be suspended and board operations and
3terms of members shall cease upon either of the following
4events:
5a. The state assessment for direct use is terminated
6pursuant to section 185C.25.
7b. The state assessment for direct use is suspended pursuant
8to section 185C.25A.
92. a. However, notwithstanding subsection 1, the board
10shall continue to operate until proceeds remaining in the corn
11promotion fund are disbursed. Disbursement shall be made as
12provided for payment of moneys under section 185C.26.
13b. In addition, the board shall continue to transfer
14remaining moneys collected from the state assessment for clean
15water to the clean water fund created in section 466B.51.
163. The secretary shall order that the board be reconstituted
17upon either of the following events:
18a. Recommencement of the promotional order, pursuant to
19section 185C.25.
20b. Termination of the promotional order’s suspension,
21pursuant to section 185C.25A.
224. Until the board is reconstituted under section 185C.8,
23the secretary has the powers to perform the duties of the board
24as provided in this chapter, including the collection of the
25state assessment for direct use at the rate in effect on the
26date when collection of the state assessment for direct use
27 was terminated pursuant to section 185C.25. However, the
28secretary shall not expend funds moneys collected from the
29 state assessment for direct use.
305. Until the board is reconstituted, the secretary shall
31collect any state assessment for clean water equal to the rate
32when the state assessment for clean water was terminated. The
33secretary shall transfer the collected moneys to the clean
34water fund created in section 466B.51.
35 Sec. 97. Section 185C.25, Code 2022, is amended to read as
-85-1follows:
2185C.25 Effective period of promotional order and state
3assessments — special referendums — termination.
41. a. A state assessment for direct use adopted upon the
5initiation of a promotional order shall be collected during
6the effective period of the promotional order, and. The state
7assessment for direct use shall have no effect upon termination
8of the promotional order.
9b. A state assessment for clean water if established shall
10be collected during the effective period of the promotional
11order. The state assessment for clean water shall have no
12effect upon the termination of the promotional order.
132. Upon adoption or extension of the promotional order, the
14order shall be effective for the period described in section
15185C.15 unless the order is terminated as provided in this
16section or suspended as provided in section 185C.25A.
172. 3. a. The secretary shall call a special referendum to
18terminate the promotional order including the state assessment
19for direct use imposed as part of the promotional order, and
20the state assessment for clean water if established.
21b. The secretary shall call, as provided in subsection 4, a
22special referendum to terminate the state assessment for clean
23water, if established.
24c. The secretary shall include, as part of the special
25referendum conducted under paragraph “a”, a separate special
26question whether to terminate the state assessment for clean
27water, if the secretary determines the inclusion of the special
28question is cost-effective or the petition demands inclusion.
294. The secretary shall call a special referendum under this
30sectionif all the following conditions are met:
31a. The secretary receives a petition signed by at least five
32percent of the state’s producers reported in the most recent
33United States census of agriculture.
34b. The petition is signed by at least five percent of the
35state’s producers residing in each of five districts according
-86-1to the most recent United States census of agriculture.
2c. The secretary receives the petition not less than one
3hundred fifty days from the date that the order is due to
4expire, but receives the petition not more than two hundred
5forty days before the date that the order is due to expire.
63. 5. a. The secretary shall conduct the election as
7provided for a special referendum to terminate the promotional
8order including the state assessment for direct use and the
9state assessment for clean water in the same manner as an
10initial referendum conducted under this chapter, including
11sections 185C.16 through 185C.20.
12b. The secretary shall conduct the special referendum to
13terminate the state assessment for clean water in the same
14manner as an initial referendum conducted under this chapter,
15including sections 185C.16 through 185C.20.
166. a. If upon counting and tabulating the ballots, the
17secretary determines that a majority of voting producers favor
18 approves termination of the state assessment promotional order,
19the secretary, in cooperation with the board, shall terminate
20the state assessment for direct use and any state assessment
21for clean water in an orderly manner as soon as practicable.
22b. If upon counting and tabulating the ballots, the
23secretary determines that a majority of voting producers
24approves termination of the state assessment for clean water,
25the secretary, in cooperation with the board, shall terminate
26the state assessment for clean water in an orderly manner as
27soon as practicable.
284. 7. a. If the assessment the promotional order is
29terminated, another a succeeding referendum to recommence the
30promotional order shall not be held conducted for at least
31one hundred eighty days from the date that the assessment
32 promotional order is terminated.
33b. If a state assessment for clean water is terminated,
34another special referendum or a succeeding referendum to
35recommence the promotional order which includes a separate
-87-1special question to establish a state assessment shall not be
2conducted for at least one hundred eighty days from the date
3that the promotional order is terminated.
48. A succeeding referendum to restore the assessment
5 recommence the promotional order shall be called by the
6secretary upon receipt of a petition of at least five hundred
7producers requesting a the special referendum. The petitioners
8shall guarantee the costs of the succeeding referendum. The
9secretary shall conduct the election succeeding referendum as
10provided for a an initial referendum under this chapter
11section 185C.2 not later than one hundred fifty days after the
12secretary receives the petition. If a succeeding referendum
13held conducted pursuant to this subsection is approved by
14producers, the promotional order shall commence recommence no
15later than two hundred ten days following the date that the
16petition is received by the secretary.
179. a. A special referendum to restore the state assessment
18for clean water shall be called by the secretary upon petition
19that otherwise complies with a petition to recommence the
20promotional order under subsection 8. The secretary shall
21conduct the special referendum in the same manner as a
22succeeding referendum conducted under that subsection. If a
23special referendum conducted pursuant to this paragraph is
24approved by producers, the state assessment for clean water
25shall resume not later than two hundred ten days following the
26date that the petition is received by the secretary.
27b. Upon receipt of a petition that otherwise complies with
28a petition to recommence the promotional order under subsection
298, the secretary shall include as part of the succeeding
30referendum conducted under that subsection a separate special
31question whether to restore the state assessment for clean
32water, if the secretary determines the inclusion of the special
33question is cost-effective or the request demands inclusion.
34If the special question is approved by producers, the state
35assessment for clean water shall resume in the same manner as
-88-1described in paragraph “a”.
2 Sec. 98. Section 185C.25A, Code 2022, is amended to read as
3follows:
4185C.25A Collection of federal assessment.
51. a. Prior to the collection of the federal assessment,
6the board may approve the continued collection of the state
7assessment for direct use as part of the promotional order
8 during the collection of the federal assessment.
9b. If a federal assessment is collected, the state
10assessment for clean water, if established, shall continue to
11be collected until terminated under section 185C.25.
122. If the collection of amount collected from the state
13assessment for direct use would be in addition to, and not an
14offset against, the collection of amount collected from the
15federal assessment, the board shall suspend the collection of
16the state assessment.
17a. On the date of the termination or suspension of the
18federal assessment, the promotional order shall recommence and
19the suspension of the state assessment for direct use shall
20terminate.
21b. On the date of the termination or suspension of the
22federal assessment, the suspension of the state assessment for
23clean water shall terminate.
24 Sec. 99. Section 185C.26, Code 2022, is amended to read as
25follows:
26185C.26 Deposit of moneys — corn promotion fund —
27administration of moneys.
281. a. A Moneys from a state assessment for direct use
29imposed as part of a promotional order and collected by the
30board from a sale of corn shall be deposited in the office of
31the treasurer of state in a special fund known as the corn
32promotion fund. The corn promotion fund may also include
33any gifts, rents, royalties, interest, license fees, or a
34federal or state grant received by the board. Moneys The
35moneys collected, deposited in the corn promotion fund, and
-89-1transferred to the board as provided in this chapter shall be
2subject to audit by the auditor of state. The auditor of state
3may seek reimbursement for the cost of the audit from moneys
4deposited in the fund as provided in this chapter.
5b. The department of administrative services shall transfer
6moneys from the corn promotion fund to the board for deposit
7into an account established by the board in a qualified
8financial institution. The department shall transfer the
9moneys as provided in a resolution adopted by the board.
10However, the department is only required to transfer moneys
11once during each day and only during hours when the offices of
12the state are open.
13c. From moneys collected, the board shall first pay all
14the direct and indirect costs incurred by the secretary and
15the costs of initial and special referendums, elections, and
16other expenses incurred in the administration of this chapter,
17before moneys may be expended to carry out the purposes of this
18chapter as provided in section 185C.11.
192. Moneys from a state assessment for clean water collected
20by the board may be deposited in a qualified financial
21institution and shall be transferred to the clean water fund
22created in section 466B.51.
23 Sec. 100. Section 185C.27, Code 2022, is amended to read as
24follows:
25185C.27 Refund of assessment state assessments.
261. a. A producer who has sold corn and had a state
27assessment for direct use deducted from the sale price, by
28application in writing to the board, may secure a refund in the
29amount deducted. The refund shall be payable only when the
30application shall have been made to the board within sixty days
31after the deduction. The board shall have thirty days from the
32date the application for refund is received to remit the refund
33to the producer.
34b. A producer who has sold corn and had the state
35assessment for clean water deducted from the sale price may,
-90-1by application in writing to the board, secure a refund of the
2amount deducted payable by the division of soil conservation
3and water quality of the department of agriculture and land
4stewardship. The board shall forward approved applications to
5the division within sixty days after the deduction.
62. Application forms shall be given by the board to
7each first purchaser when requested and the first purchaser
8shall make the applications available to any producer. Each
9application for refund by a producer shall have attached to
10the application proof of the state assessment deducted. The
11proof of state assessment may be in the form of a duplicate
12or certified copy of the purchase invoice by the first
13purchaser. The board shall have thirty days from the date the
14application for refund is received to remit the refund to the
15producer. The form shall allow the applicant to elect whether
16the refund is for the state assessment for direct use or the
17state assessment for clean water or both. The board shall not
18approve an application unless the application indicates the
19election.
203. a. The board may provide for refunds of a federal
21assessment as provided by federal law. Unless inconsistent
22with federal law, refunds shall be made under section 185C.26.
23b. The board may provide for filing applications for a
24refund of the state assessment for direct use and the state
25assessment for clean water based on applicable procedures
26for the filing of applications for refunds of the federal
27assessment.
28 Sec. 101. Section 185C.29, subsection 1, Code 2022, is
29amended to read as follows:
301. a. After the direct and indirect costs incurred by the
31secretary and the costs of elections, referendums, necessary
32board expenses, and administrative costs have been paid, at
33least seventy-five percent of the remaining moneys from a
34state assessment for direct use shall be deposited in the corn
35promotion fund and shall be used to carry out the purposes of
-91-1the board as provided in section 185C.11.
2b. Except as expressly provided in this chapter, moneys
3collected from the state assessment for clean water shall not
4be used for any purpose other than to be transferred to the
5clean water fund created pursuant to section 466B.51.
6 Sec. 102. Section 185C.33, Code 2022, is amended to read as
7follows:
8185C.33 Report.
9The board shall each year prepare and submit a report
10summarizing the activities of the board under this chapter to
11the auditor of state and the secretary of agriculture. The
12report shall show all income, expenses, and other relevant
13information concerning fees the state assessment for direct use
14 collected and expended under the provisions of this chapter.
15DIVISION IX
16CLEAN WATER FUND
17 Sec. 103. NEW SECTION. 7D.10B Payment to the clean water
18fund.
19If moneys are not sufficient to reimburse the department of
20agriculture and land stewardship or a commodity organization
21described in section 466B.51 for reasonable expenses incurred
22in conducting a referendum to establish, continue, or terminate
23a state assessment for clean water, the executive council may
24authorize as an expense paid from the appropriations addressed
25in section 7D.29 the payment of an amount to the clean water
26fund created in section 466B.51. However, not more than a
27total of one hundred thousand dollars shall be paid pursuant
28to this section to the fund at any one time to pay for expenses
29incurred in conducting a referendum.
30 Sec. 104. Section 423.2, subsections 1, 2, 3, 4, 5, 7, 8, 9,
3110, and 12, Code 2022, are amended to read as follows:
321. a. There is imposed a tax of six percent upon the sales
33price of all sales of tangible personal property, sold at
34retail in the state to consumers or users except as otherwise
35provided in this subchapter. This paragraph is repealed on the
-92-1date that paragraph “b” takes effect.
2b. There is imposed a tax of six and one-eighth percent upon
3the sales price of all sales of tangible personal property,
4consisting of goods, wares, or merchandise, sold at retail in
5the state to consumers or users except as otherwise provided
6in this subchapter. This paragraph takes effect on July 1 of
7the fiscal year in which the department receives the first
8certification that commodity organizations have collected
9twenty million dollars from state assessments for clean
10water during the preceding fiscal year as provided in section
11466B.55. This paragraph is repealed on the date that paragraph
12“c” takes effect.
13c. There is imposed a tax of six and two-eighths percent
14upon the sales price of all sales of tangible personal
15property, consisting of goods, wares, or merchandise, sold at
16retail in the state to consumers or users except as otherwise
17provided in this subchapter. This paragraph takes effect on
18July 1 of the fiscal year in which the department receives
19the second certification that commodity organizations have
20collected twenty million dollars from state assessments for
21clean water during the preceding fiscal year as provided in
22section 466B.55. This paragraph is repealed on the date that
23paragraph “d” takes effect.
24d. There is imposed a tax of six and three-eighths percent
25upon the sales price of all sales of tangible personal
26property, consisting of goods, wares, or merchandise, sold at
27retail in the state to consumers or users except as otherwise
28provided in this subchapter. This paragraph takes effect on
29July 1 of the fiscal year in which the department receives
30the third certification that commodity organizations have
31collected twenty million dollars from state assessments for
32clean water during the preceding fiscal year as provided in
33section 466B.55.
34a. e. For the purposes of this subchapter, sales of
35the following services are treated as if they were sales of
-93-1tangible personal property:
2(1) Sales of engraving, printing, and binding services.
3(2) Sales of vulcanizing, recapping, and retreading
4services.
5(3) Sales of prepaid calling services and prepaid wireless
6calling services.
7(4) Sales of optional service or warranty contracts, except
8residential service contracts regulated under chapter 523C,
9which provide for the furnishing of labor and materials and
10require the furnishing of any taxable service enumerated under
11this section. The sales price is subject to tax even if some of
12the services furnished are not enumerated under this section.
13Additional sales, services, or use taxes shall not be levied
14on services, parts, or labor provided under optional service
15or warranty contracts which are subject to tax under this
16subsection.
17(5) Sales of optional service or warranty contracts for
18computer software maintenance or support services.
19(a) If a service or warranty contract does not specify a fee
20amount for nontaxable services or taxable personal property,
21the tax imposed pursuant to this section shall be imposed upon
22an amount equal to the sales price of the contract.
23(b) If a service or warranty contract provides only for
24technical support services, no tax shall be imposed pursuant to
25this section.
26(6) Subparagraphs (4) and (5) shall also apply to the use
27tax imposed under section 423.5.
28b. f. Sales of building materials, supplies, and equipment
29to owners, contractors, subcontractors, or builders for the
30erection of buildings or the alteration, repair, or improvement
31of real property are retail sales of tangible personal property
32in whatever quantity sold. Where the owner, contractor,
33subcontractor, or builder is also a retailer holding a retail
34sales tax permit and transacting retail sales of building
35materials, supplies, and equipment, the person shall purchase
-94-1such items of tangible personal property without liability for
2the tax if such property will be subject to the tax at the
3time of resale or at the time it is withdrawn from inventory
4for construction purposes. The sales tax shall be due in the
5reporting period when the materials, supplies, and equipment
6are withdrawn from inventory for construction purposes or
7when sold at retail. The tax shall not be due when materials
8are withdrawn from inventory for use in construction outside
9of Iowa and the tax shall not apply to tangible personal
10property purchased and consumed by the manufacturer as building
11materials in the performance by the manufacturer or its
12subcontractor of construction outside of Iowa. The sale of
13carpeting is not a sale of building materials. The sale of
14carpeting to owners, contractors, subcontractors, or builders
15shall be treated as the sale of ordinary tangible personal
16property and subject to the tax imposed under this subsection
17and the use tax.
18c. g. The use within this state of tangible personal
19property by the manufacturer thereof, as building materials,
20supplies, or equipment, in the performance of construction
21contracts in Iowa, shall, for the purpose of this subchapter,
22be construed as a sale at retail of tangible personal property
23by the manufacturer who shall be deemed to be the consumer of
24such tangible personal property. The tax shall be computed
25upon the cost to the manufacturer of the fabrication or
26production of the tangible personal property.
272. a. A tax of six percent is imposed upon the sales price
28of the sale or furnishing of gas, electricity, water, heat,
29pay television service, and communication service, including
30the sales price from such sales by any municipal corporation
31or joint water utility furnishing gas, electricity, water,
32heat, pay television service, and communication service to
33the public in its proprietary capacity, except as otherwise
34provided in this subchapter, when sold at retail in the state
35to consumers or users. This paragraph is repealed on the date
-95-1that paragraph “b” takes effect.
2b. A tax of six and one-eighth percent is imposed upon the
3sales price of the sale or furnishing of gas, electricity,
4water, heat, pay television service, and communication service,
5including the sales price from such sales by any municipal
6corporation or joint water utility furnishing gas, electricity,
7water, heat, pay television service, and communication service
8to the public in its proprietary capacity, except as otherwise
9provided in this subchapter, when sold at retail in the state
10to consumers or users. This paragraph takes effect on July 1
11of the fiscal year in which the department receives the first
12certification that commodity organizations have collected
13twenty million dollars from state assessments for clean
14water during the preceding fiscal year as provided in section
15466B.55. This paragraph is repealed on the date that paragraph
16“c” takes effect.
17c. A tax of six and two-eighths percent is imposed upon
18the sales price of the sale or furnishing of gas, electricity,
19water, heat, pay television service, and communication service,
20including the sales price from such sales by any municipal
21corporation or joint water utility furnishing gas, electricity,
22water, heat, pay television service, and communication service
23to the public in its proprietary capacity, except as otherwise
24provided in this subchapter, when sold at retail in the state
25to consumers or users. This paragraph takes effect on July 1
26of the fiscal year in which the department receives the second
27certification that commodity organizations have collected
28twenty million dollars from state assessments for clean
29water during the preceding fiscal year as provided in section
30466B.55. This paragraph is repealed on the date that paragraph
31“d” takes effect.
32d. A tax of six and three-eighths percent is imposed upon
33the sales price of the sale or furnishing of gas, electricity,
34water, heat, pay television service, and communication service,
35including the sales price from such sales by any municipal
-96-1corporation or joint water utility furnishing gas, electricity,
2water, heat, pay television service, and communication service
3to the public in its proprietary capacity, except as otherwise
4provided in this subchapter, when sold at retail in the state
5to consumers or users. This paragraph takes effect on July 1
6of the fiscal year in which the department receives the third
7certification that commodity organizations have collected
8twenty million dollars from state assessments for clean
9water during the preceding fiscal year as provided in section
10466B.55.
113. a. A tax of six percent is imposed upon the sales price
12of all sales of tickets or admissions to places of amusement,
13fairs, and athletic events except those of elementary and
14secondary educational institutions. A tax of six percent is
15imposed on the sales price of an entry fee or like charge
16imposed solely for the privilege of participating in an
17activity at a place of amusement, fair, or athletic event
18unless the sales price of tickets or admissions charges for
19observing the same activity are taxable under this subchapter.
20A tax of six percent is imposed upon that part of private
21club membership fees or charges paid for the privilege of
22participating in any athletic sports provided club members.
23This paragraph is repealed on the date that paragraph “b” takes
24effect.
25b. A tax of six and one-eighth percent is imposed upon the
26sales price of all sales of tickets or admissions to places
27of amusement, fairs, and athletic events except those of
28elementary and secondary educational institutions. A tax of
29six and one-eighth percent is imposed on the sales price of an
30entry fee or like charge imposed solely for the privilege of
31participating in an activity at a place of amusement, fair, or
32athletic event unless the sales price of tickets or admissions
33charges for observing the same activity are taxable under this
34subchapter. A tax of six and one-eighth percent is imposed
35upon that part of private club membership fees or charges paid
-97-1for the privilege of participating in any athletic sports
2provided club members. This paragraph takes effect on July 1
3of the fiscal year in which the department receives the first
4certification that commodity organizations have collected
5twenty million dollars from state assessments for clean
6water during the preceding fiscal year as provided in section
7466B.55. This paragraph is repealed on the date that paragraph
8“c” takes effect.
9c. A tax of six and two-eighths percent is imposed upon the
10sales price of all sales of tickets or admissions to places
11of amusement, fairs, and athletic events except those of
12elementary and secondary educational institutions. A tax of
13six and two-eighths percent is imposed on the sales price of
14an entry fee or like charge imposed solely for the privilege
15of participating in an activity at a place of amusement,
16fair, or athletic event unless the sales price of tickets or
17admissions charges for observing the same activity are taxable
18under this subchapter. A tax of six and two-eighths percent
19is imposed upon that part of private club membership fees or
20charges paid for the privilege of participating in any athletic
21sports provided club members. This paragraph takes effect on
22July 1 of the fiscal year in which the department receives
23the second certification that commodity organizations have
24collected twenty million dollars from state assessments for
25clean water during the preceding fiscal year as provided in
26section 466B.55. This paragraph is repealed on the date that
27paragraph “d” takes effect.
28d. A tax of six and three-eighths percent is imposed upon
29the sales price of all sales of tickets or admissions to places
30of amusement, fairs, and athletic events except those of
31elementary and secondary educational institutions. A tax of
32six and three-eighths percent is imposed on the sales price of
33an entry fee or like charge imposed solely for the privilege
34of participating in an activity at a place of amusement,
35fair, or athletic event unless the sales price of tickets or
-98-1admissions charges for observing the same activity are taxable
2under this subchapter. A tax of six and three-eighths percent
3is imposed upon that part of private club membership fees or
4charges paid for the privilege of participating in any athletic
5sports provided club members. This paragraph takes effect on
6July 1 of the fiscal year in which the department receives
7the third certification that commodity organizations have
8collected twenty million dollars from state assessments for
9clean water during the preceding fiscal year as provided in
10section 466B.55.
114. a. (1) A tax of six percent is imposed upon the sales
12price derived from the operation of all forms of amusement
13devices and games of skill, games of chance, raffles, and bingo
14games as defined in chapter 99B, and card game tournaments
15conducted under section 99B.27, that are operated or conducted
16within the state, the tax to be collected from the operator in
17the same manner as for the collection of taxes upon the sales
18price of tickets or admission as provided in this section.
19Nothing in this subsection shall legalize any games of skill
20or chance or slot-operated devices which are now prohibited
21by law. This subparagraph is repealed on the date that
22subparagraph (2) takes effect.
23(2) A tax of six and one-eighth percent is imposed upon
24the sales price derived from the operation of all forms of
25amusement devices and games of skill, games of chance, raffles,
26and bingo games as defined in chapter 99B, and card game
27tournaments conducted under section 99B.27, that are operated
28or conducted within the state, the tax to be collected from
29the operator in the same manner as for the collection of taxes
30upon the sales price of tickets or admission as provided in
31this section. This subparagraph takes effect on July 1 of
32the fiscal year in which the department receives the first
33certification that commodity organizations have collected
34twenty million dollars from state assessments for clean
35water during the preceding fiscal year as provided in section
-99-1466B.55. This subparagraph is repealed on the date that
2subparagraph (3) takes effect.
3(3) A tax of six and two-eighths percent is imposed upon
4the sales price derived from the operation of all forms of
5amusement devices and games of skill, games of chance, raffles,
6and bingo games as defined in chapter 99B, and card game
7tournaments conducted under section 99B.27, that are operated
8or conducted within the state, the tax to be collected from
9the operator in the same manner as for the collection of taxes
10upon the sales price of tickets or admission as provided in
11this section. This subparagraph takes effect on July 1 of
12the fiscal year in which the department receives the second
13certification that commodity organizations have collected
14twenty million dollars from state assessments for clean
15water during the preceding fiscal year as provided in section
16466B.55. This subparagraph is repealed on the date that
17subparagraph (4) takes effect.
18(4) A tax of six and three-eighths percent is imposed upon
19the sales price derived from the operation of all forms of
20amusement devices and games of skill, games of chance, raffles,
21and bingo games as defined in chapter 99B, and card game
22tournaments conducted under section 99B.27, that are operated
23or conducted within the state, the tax to be collected from
24the operator in the same manner as for the collection of taxes
25upon the sales price of tickets or admission as provided in
26this section. This subparagraph takes effect on July 1 of
27the fiscal year in which the department receives the third
28certification that commodity organizations have collected
29twenty million dollars from state assessments for clean
30water during the preceding fiscal year as provided in section
31466B.55.
32b. (1) The tax imposed under this subsection covers the
33total amount from the operation of games of skill, games
34of chance, raffles, and bingo games as defined in chapter
3599B, card game tournaments conducted under section 99B.27,
-100-1and musical devices, weighing machines, shooting galleries,
2billiard and pool tables, bowling alleys, pinball machines,
3slot-operated devices selling merchandise not subject to the
4general sales taxes and on the total amount from devices or
5systems where prizes are in any manner awarded to patrons and
6upon the receipts from fees charged for participation in any
7game or other form of amusement, and generally upon the sales
8price from any source of amusement operated for profit, not
9specified in this section, and upon the sales price from which
10tax is not collected for tickets or admission, but tax shall
11not be imposed upon any activity exempt from sales tax under
12section 423.3, subsection 78.
13(2) Every person receiving any sales price from the sources
14described in this section is subject to all provisions of this
15subchapter relating to retail sales tax and other provisions
16of this chapter as applicable.
17c. Nothing in this subsection shall legalize any games
18of skill or chance or slot-operated devices which are now
19prohibited by law.
205. a. There is imposed a tax of six percent upon the sales
21price from the furnishing of services as defined in section
22423.1. This paragraph is repealed on the date that paragraph
23“b” takes effect.
24b. There is imposed a tax of six and one-eighth percent
25upon the sales price from the furnishing of services as defined
26in section 423.1. This paragraph takes effect on July 1 of
27the fiscal year in which the department receives the first
28certification that commodity organizations have collected
29twenty million dollars from state assessments for clean
30water during the preceding fiscal year as provided in section
31466B.55. This paragraph is repealed on the date that paragraph
32“c” takes effect.
33c. There is imposed a tax of six and two-eighths percent
34upon the sales price from the furnishing of services as defined
35in section 423.1. This paragraph takes effect on July 1 of
-101-1the fiscal year in which the department receives the second
2certification that commodity organizations have collected
3twenty million dollars from state assessments for clean
4water during the preceding fiscal year as provided in section
5466B.55. This paragraph is repealed on the date that paragraph
6“d” takes effect.
7d. There is imposed a tax of six and three-eighths percent
8upon the sales price from the furnishing of services as defined
9in section 423.1. This paragraph takes effect on July 1 of
10the fiscal year in which the department receives the third
11certification that commodity organizations have collected
12twenty million dollars from state assessments for clean
13water during the preceding fiscal year as provided in section
14466B.55.
157. a. (1) A tax of six percent is imposed upon the sales
16price from the sales, furnishing, or service of solid waste
17collection and disposal service. This subparagraph is repealed
18on the date that subparagraph (2) takes effect.
19(2) A tax of six and one-eighth percent is imposed upon the
20sales price from the sales, furnishing, or service of solid
21waste collection and disposal service. This subparagraph takes
22effect on July 1 of the fiscal year in which the department
23receives the first certification that commodity organizations
24have collected twenty million dollars from state assessments
25for clean water during the preceding fiscal year as provided
26in section 466B.55. This subparagraph is repealed on the date
27that subparagraph (3) takes effect.
28(3) A tax of six and two-eighths percent is imposed upon
29the sales price from the sales, furnishing, or service of solid
30waste collection and disposal service. This subparagraph takes
31effect on July 1 of the fiscal year in which the department
32receives the second certification that commodity organizations
33have collected twenty million dollars from state assessments
34for clean water during the preceding fiscal year as provided
35in section 466B.55. This subparagraph is repealed on the date
-102-1that subparagraph (4) takes effect.
2(4) A tax of six and three-eighths percent is imposed upon
3the sales price from the sales, furnishing, or service of solid
4waste collection and disposal service. This subparagraph takes
5effect on July 1 of the fiscal year in which the department
6receives the third certification that commodity organizations
7have collected twenty million dollars from state assessments
8for clean water during the preceding fiscal year as provided
9in section 466B.55.
10b. (1) For purposes of this subsection, “solid waste” means
11garbage, refuse, sludge from a water supply treatment plant
12or air contaminant treatment facility, and other discarded
13waste materials and sludges, in solid, semisolid, liquid,
14or contained gaseous form, resulting from nonresidential
15commercial operations, but does not include auto hulks; street
16sweepings; ash; construction debris; mining waste; trees;
17tires; lead acid batteries; used oil; hazardous waste; animal
18waste used as fertilizer; earthen fill, boulders, or rock;
19foundry sand used for daily cover at a sanitary landfill;
20sewage sludge; solid or dissolved material in domestic
21sewage or other common pollutants in water resources, such as
22silt, dissolved or suspended solids in industrial wastewater
23effluents or discharges which are point sources subject to
24permits under section 402 of the federal Water Pollution
25Control Act, or dissolved materials in irrigation return flows;
26or source, special nuclear, or by-product material defined by
27the federal Atomic Energy Act of 1954.
28(2) A recycling facility that separates or processes
29recyclable materials and that reduces the volume of the waste
30by at least eighty-five percent is exempt from the tax imposed
31by this subsection if the waste exempted is collected and
32disposed of separately from other solid waste.
33b. c. A person who transports solid waste generated by that
34person or another person without compensation shall pay the
35tax imposed by this subsection at the collection or disposal
-103-1facility based on the disposal charge or tipping fee. However,
2the costs of a service or portion of a service to collect and
3manage recyclable materials separated from solid waste by
4the waste generator are exempt from the tax imposed by this
5subsection.
68. a. (1) A tax of six percent is imposed on the sales
7price from sales of bundled transactions. For the purposes of
8this subsection, a “bundled transaction” is the retail sale of
9two or more distinct and identifiable products, except real
10property and services to real property, which are sold for one
11nonitemized price. A “bundled transaction” does not include
12the sale of any products in which the sales price varies, or
13is negotiable, based on the selection by the purchaser of the
14products included in the transaction. This subparagraph is
15repealed on the date that subparagraph (2) takes effect.
16(2) A tax of six and one-eighth percent is imposed on
17the sales price from sales of bundled transactions. This
18subparagraph (2) takes effect on July 1 of the fiscal year in
19which the department receives the first certification that
20commodity organizations have collected twenty million dollars
21from state assessments for clean water during the preceding
22fiscal year as provided in section 466B.55. This subparagraph
23is repealed on the date that subparagraph (3) takes effect.
24(3) A tax of six and two-eighths percent is imposed on
25the sales price from sales of bundled transactions. This
26subparagraph takes effect on July 1 of the fiscal year in which
27the department receives the second certification that commodity
28organizations have collected twenty million dollars from state
29assessments for clean water during the preceding fiscal year as
30provided in section 466B.55. This subparagraph is repealed on
31the date that subparagraph (4) takes effect.
32(4) A tax of six and three-eighths percent is imposed on
33the sales price from sales of bundled transactions. This
34subparagraph takes effect on July 1 of the fiscal year in which
35the department receives the third certification that commodity
-104-1organizations have collected twenty million dollars from state
2assessments for clean water during the preceding fiscal year
3as provided in section 466B.55.
4b. For the purposes of this subsection, a “bundled
5transaction” is the retail sale of two or more distinct and
6identifiable products, except real property and services to
7real property, which are sold for one nonitemized price. A
8“bundled transaction” does not include the sale of any products
9in which the sales price varies, or is negotiable, based on
10the selection by the purchaser of the products included in the
11transaction.
12b. c. “Distinct and identifiable products” does not include
13any of the following:
14(1) Packaging or other materials that accompany the retail
15sale of the products and that are incidental or immaterial to
16the retail sale of the products.
17(2) A product Products provided free of charge with the
18required purchase of another product. A product is “provided
19free of charge” if the sales price of the product purchased does
20not vary depending on the inclusion of the product which is
21provided free of charge.
22(3) Items included in the definition of “sales price”
23pursuant to section 423.1.
24c. d. “One nonitemized price” does not include a price that
25is separately identified by product on binding sales or other
26supporting sales-related documentation made available to the
27customer in paper or electronic form.
28d. e. A transaction that otherwise meets the definition of
29“bundled transaction” as defined in this subsection is not a
30bundled transaction if it is any of the following:
31(1) The retail sale of tangible personal property or a
32 specified digital product and a service, where the tangible
33personal property or specified digital product is essential
34to the use of the service, and is provided exclusively in
35connection with the service, and the true object of the
-105-1transaction is the service.
2(2) The retail sale of services where one service is
3provided that is essential to the use or receipt of a second
4service, and the first service is provided exclusively in
5connection with the second service, and the true object of the
6transaction is the second service.
7(3) (a) A transaction that includes taxable products and
8nontaxable products and the purchase price or sales price of
9the taxable products is de minimis.
10(b) For purposes of this subparagraph, “de minimis” means
11the seller’s purchase or sales price of the taxable products is
12ten percent or less of the total purchase price or sales price
13of the bundled products. Sellers A seller shall use either the
14purchase price or the sale price of the products to determine
15if the taxable products are de minimis. Sellers may A seller
16shall not use a combination of the purchase price and sales
17price of the products to determine if the taxable products are
18de minimis.
19(4) The retail sale of exempt tangible personal property and
20taxable tangible personal property where all of the following
21apply:
22(a) The transaction includes food and or food ingredients,
23drugs, durable medical equipment, mobility enhancing equipment,
24prosthetic devices, or medical supplies.
25(b) The seller’s purchase price or sales price of the
26taxable tangible personal property is fifty percent or less
27of the total purchase price or sales price of the bundled
28tangible personal property. Sellers may A seller shall not
29use a combination of the purchase price and sales price of
30the tangible personal property when making the fifty percent
31determination for a transaction.
329. a. (1) A tax of six percent is imposed upon the sales
33price from any mobile telecommunications service, including all
34paging services, that this state is allowed to tax pursuant
35to the provisions of the federal Mobile Telecommunications
-106-1Sourcing Act, Pub.L. No.106-252, 4 U.S.C. §116 et seq. This
2subparagraph is repealed on the date that subparagraph (2)
3takes effect.
4(2) A tax of six and one-eighth percent is imposed upon
5the sales price from any mobile telecommunications service,
6including all paging services, that this state is allowed
7to tax pursuant to the provisions of the federal Mobile
8Telecommunications Sourcing Act, Pub.L. No.106-252, 4 U.S.C.
9§116 et seq. This subparagraph takes effect on July 1 of
10the fiscal year in which the department receives the first
11certification that commodity organizations have collected
12twenty million dollars from state assessments for clean
13water during the preceding fiscal year as provided in section
14466B.55. This subparagraph is repealed on the date that
15subparagraph (3) takes effect.
16(3) A tax of six and two-eighths percent is imposed upon
17the sales price from any mobile telecommunications service,
18including all paging services, that this state is allowed
19to tax pursuant to the provisions of the federal Mobile
20Telecommunications Sourcing Act, Pub.L. No.106-252, 4 U.S.C.
21§116 et seq. This subparagraph takes effect on July 1 of
22the fiscal year in which the department receives the second
23certification that commodity organizations have collected
24twenty million dollars from state assessments for clean
25water during the preceding fiscal year as provided in section
26466B.55. This subparagraph is repealed on the date that
27subparagraph (4) takes effect.
28(4) A tax of six and three-eighths percent is imposed upon
29the sales price from any mobile telecommunications service,
30including all paging services, that this state is allowed
31to tax pursuant to the provisions of the federal Mobile
32Telecommunications Sourcing Act, Pub.L. No.106-252, 4 U.S.C.
33§116 et seq. This subparagraph takes effect on July 1 of
34the fiscal year in which the department receives the third
35certification that commodity organizations have collected
-107-1twenty million dollars from state assessments for clean
2water during the preceding fiscal year as provided in section
3466B.55.
4b. For purposes of this subsection, taxes on mobile
5telecommunications service, as defined under the federal Mobile
6Telecommunications Sourcing Act that are deemed to be provided
7by the customer’s home service provider, shall be paid to
8the taxing jurisdiction whose territorial limits encompass
9the customer’s place of primary use, regardless of where the
10mobile telecommunications service originates, terminates,
11or passes through and shall in all other respects be taxed
12in conformity with the federal Mobile Telecommunications
13Sourcing Act. All other provisions of the federal Mobile
14Telecommunications Sourcing Act are adopted by the state of
15Iowa and incorporated into this subsection by reference. With
16respect to mobile telecommunications service under the federal
17Mobile Telecommunications Sourcing Act, the director shall, if
18requested, enter into agreements consistent with the provisions
19of the federal Act.
2010. a. (1) A tax of six percent is imposed on the
21sales price of specified digital products sold at retail in
22the state. This subparagraph is repealed on the date that
23subparagraph (2) takes effect.
24(2) A tax of six and one-eighth percent is imposed upon the
25sales price of specified digital products sold at retail in the
26state. This subparagraph takes effect on July 1 of the fiscal
27year in which the department receives the first certification
28that commodity organizations have collected twenty million
29dollars from state assessments for clean water during the
30preceding fiscal year as provided in section 466B.55. This
31subparagraph is repealed on the date that subparagraph (3)
32takes effect.
33(3) A tax of six and two-eighths percent is imposed upon the
34sales price of specified digital products sold at retail in the
35state. This subparagraph takes effect on July 1 of the fiscal
-108-1year in which the department receives the second certification
2that commodity organizations have collected twenty million
3dollars from state assessments for clean water during the
4preceding fiscal year as provided in section 466B.55. This
5subparagraph is repealed on the date that subparagraph (4)
6takes effect.
7(4) A tax of six and three-eighths percent is imposed upon
8the sales price of specified digital products sold at retail
9in the state. This subparagraph takes effect on July 1 of
10the fiscal year in which the department receives the third
11certification that commodity organizations have collected
12twenty million dollars from state assessments for clean
13water during the preceding fiscal year as provided in section
14466B.55.
15b. The tax applies whether the purchaser obtains permanent
16use or less than permanent use of the specified digital
17product, whether the sale is conditioned or not conditioned
18upon continued payment from the purchaser, and whether the sale
19is on a subscription basis or is not on a subscription basis.
20b. c. The sale of a digital code that may be used to obtain
21or access a specified digital product shall be taxed in the
22same manner as the specified digital product. For purposes
23of this paragraph, “digital code” means a method that permits
24a purchaser to obtain or access at a later date a specified
25digital product.
2612. a. The sales tax rate of six percent is reduced to five
27percent on January 1, 2051.
28b. Notwithstanding paragraph “a”, the following apply:
29(1) If the sales tax rate is six and one-eighth percent,
30the sales tax rate is reduced to five and one-eighth percent
31on January 1, 2051.
32(2) If the sales tax rate is six and two-eighths percent,
33the sales tax rate is reduced to five and two-eighths percent
34on January 1, 2051.
35(3) If the sales tax rate is six and three-eighths percent,
-109-1the sales tax rate is reduced to five and three-eighths percent
2on January 1, 2051.
3 Sec. 105. Section 423.5, Code 2022, is amended to read as
4follows:
5423.5 Imposition of tax.
61. Except as provided in paragraph “b”, an excise tax at the
7rate of six percent of the purchase price or installed purchase
8price is imposed on the following:
91. a. (1) The Except as provided in subsection 2, an
10excise tax of six percent of the purchase price is imposed on
11the use in this state of tangible personal property as defined
12in section 423.1, including aircraft subject to registration
13under section 328.20, purchased for use in this state. This
14subparagraph is repealed on the date that subparagraph (2)
15takes effect.
16(2) Except as provided in subsection 2, an excise tax of six
17and one-eighth percent of the purchase price is imposed upon
18the use in this state of tangible personal property as defined
19in section 423.1, including aircraft subject to registration
20under section 328.20, purchased for use in this state. This
21subparagraph takes effect on July 1 of the fiscal year in which
22the department receives the first certification that commodity
23organizations have collected twenty million dollars from state
24assessments for clean water during the preceding fiscal year as
25provided in section 466B.55. This subparagraph is repealed on
26the date that subparagraph (3) takes effect.
27(3) Except as provided in subsection 2, an excise tax of six
28and two-eighths percent of the purchase price is imposed upon
29the use in this state of tangible personal property as defined
30in section 423.1, including aircraft subject to registration
31under section 328.20, purchased for use in this state. This
32subparagraph takes effect on July 1 of the fiscal year in which
33the department receives the second certification that commodity
34organizations have collected twenty million dollars from state
35assessments for clean water during the preceding fiscal year as
-110-1provided in section 466B.55. This subparagraph is repealed on
2the date that subparagraph (4) takes effect.
3(4) Except as provided in subsection 2, an excise tax of six
4and three-eighths percent of the purchase price is imposed on
5the use in this state of tangible personal property as defined
6in section 423.1, including aircraft subject to registration
7under section 328.20, purchased for use in this state. This
8subparagraph takes effect on July 1 of the fiscal year in which
9the department receives the third certification that commodity
10organizations have collected twenty million dollars from state
11assessments for clean water during the preceding fiscal year
12as provided in section 466B.55.
13b. For the purposes of this subchapter, the furnishing
14or use of the following services is also treated as the use
15of tangible personal property: optional service or warranty
16contracts, except residential service contracts regulated under
17chapter 523C, vulcanizing, recapping, or retreading services,
18engraving, printing, or binding services, and communication
19service when furnished or delivered to consumers or users
20within this state.
21b. 2. An excise tax at the rate of five percent is imposed
22on the use of vehicles subject only to the issuance of a
23certificate of title and the use of manufactured housing, and
24on the use of leased vehicles, if the lease transaction does
25not require titling or registration of the vehicle, on the
26amount subject to tax as calculated pursuant to section 423.26,
27subsection 2.
28c. 3. a. Purchases An excise tax at the rate of six
29percent is imposed on the use of tangible personal property
30or specified digital products made from the government of the
31United States or any of its agencies by ultimate consumers
32shall be subject to the tax imposed by this section. Services
33purchased from the same source or sources shall be subject to
34the service tax imposed by this subchapter and apply to the
35user of the services. This paragraph is repealed on the date
-111-1that paragraph “b” takes effect.
2b. An excise tax at the rate of six and one-eighth percent
3is imposed on the use of tangible personal property or
4specified digital products made from the government of the
5United States or any of its agencies by ultimate consumers
6shall be subject to the tax imposed by this section. Services
7purchased from the same source or sources shall be subject to
8the service tax imposed by this subchapter and apply to the
9user of the services. This paragraph takes effect on July 1
10of the fiscal year in which the department receives the first
11certification that commodity organizations have collected
12twenty million dollars from the state assessments for clean
13water during the preceding fiscal year as provided in section
14466B.55. This paragraph is repealed on the date that paragraph
15“c” takes effect.
16c. An excise tax at the rate of six and two-eighths
17percent is imposed on the use of tangible personal property
18or specified digital products made from the government of the
19United States or any of its agencies by ultimate consumers
20shall be subject to the tax imposed by this section. Services
21purchased from the same source or sources shall be subject to
22the service tax imposed by this subchapter and apply to the
23user of the services. This paragraph takes effect on July 1
24of the fiscal year in which the department receives the first
25certification that commodity organizations have collected
26twenty million dollars from the state assessments for clean
27water during the preceding fiscal year as provided in section
28466B.55. This paragraph is repealed on the date that paragraph
29“d” takes effect.
30d. An excise tax at the rate of six and three-eighths
31percent is imposed on the use of tangible personal property
32or specified digital products made from the government of the
33United States or any of its agencies by ultimate consumers
34shall be subject to the tax imposed by this section. Services
35purchased from the same source or sources shall be subject to
-112-1the service tax imposed by this subchapter and apply to the
2user of the services. This paragraph takes effect on July 1
3of the fiscal year in which the department receives the first
4certification that commodity organizations have collected
5twenty million dollars from the state assessments for clean
6water during the preceding fiscal year as provided in section
7466B.55.
8d. 4. a. (1) The An excise tax at the rate of six percent
9is imposed on the use in this state of services enumerated in
10section 423.2. This subparagraph is repealed on the date that
11subparagraph (2) takes effect.
12(2) An excise tax of six and one-eighth percent of the
13purchase price is imposed on the use in this state of services
14enumerated in section 423.2. This subparagraph takes effect
15on July 1 of the fiscal year in which the department receives
16the first certification that commodity organizations have
17collected twenty million dollars from state assessments for
18clean water during the preceding fiscal year as provided in
19section 466B.55. This subparagraph is repealed on the date
20that subparagraph (3) takes effect.
21(3) An excise tax of six and two-eighths percent of the
22purchase price is imposed on the use in this state of services
23enumerated in section 423.2. This subparagraph takes effect
24on July 1 of the fiscal year in which the department receives
25the second certification that commodity organizations have
26collected twenty million dollars from state assessments for
27clean water during the preceding fiscal year as provided in
28section 466B.55. This subparagraph is repealed on the date
29that subparagraph (4) takes effect.
30(4) An excise tax of six and three-eighths percent of the
31purchase price is imposed on the use in this state of services
32enumerated in section 423.2. This subparagraph takes effect
33on July 1 of the fiscal year in which the department receives
34the third certification that commodity organizations have
35collected twenty million dollars from state assessments for
-113-1clean water during the preceding fiscal year as provided in
2section 466B.55.
3b. This The tax described in paragraph “a” is applicable
4where the service is first used in this state.
5e. 5. a. (1) The An excise tax at the rate of six percent
6is imposed on the use in this state of specified digital
7products. This subparagraph is repealed on the date that
8subparagraph (2) takes effect.
9(2) An excise tax at the rate of six and one-eighth
10percent is imposed on the use in this state of specified
11digital products. This subparagraph takes effect on July 1
12of the fiscal year in which the department receives the first
13certification that commodity organizations have collected
14twenty million dollars from the state assessments for clean
15water during the preceding fiscal year as provided in section
16466B.55. This subparagraph is repealed on the date that
17subparagraph (3) takes effect.
18(3) An excise tax at the rate of six and two-eighths
19percent is imposed on the use in this state of specified
20digital products. This subparagraph takes effect on July 1 of
21the fiscal year in which the department receives the second
22certification that commodity organizations have collected
23twenty million dollars from the state assessments for clean
24water during the preceding fiscal year as provided in section
25466B.55. This subparagraph is repealed on the date that
26subparagraph (4) takes effect.
27(4) An excise tax at the rate of six and three-eighths
28percent is imposed on the use in this state of specified
29digital products. This subparagraph takes effect on July 1
30of the fiscal year in which the department receives the third
31certification that commodity organizations have collected
32twenty million dollars from the state assessments for clean
33water during the preceding fiscal year as provided in section
34466B.55.
35b. (1) The tax described in paragraph “a” applies whether
-114-1the purchaser obtains permanent use or less than permanent
2use of the specified digital product, whether the use is
3conditioned or not conditioned upon continued payment from the
4purchaser, and whether the use is on a subscription basis or
5is not on a subscription basis.
6(2) The use of a digital code that may be used to obtain
7or access a specified digital product shall be taxed in the
8same manner as the specified digital product. For purposes of
9this subparagraph, “digital code” means the same as defined in
10section 423.2, subsection 10.
112. 6. The excise tax is imposed upon every person using
12the property within this state until the tax has been paid
13directly to the county treasurer, the state department of
14transportation, a retailer, or the department. This tax is
15imposed on every person using the services or the product of
16the services in this state until the user has paid the tax
17either to an Iowa use tax permit holder or to the department.
183. 7. For the purpose of the proper administration of the
19use tax and to prevent its evasion, evidence that tangible
20personal property or specified digital products were sold by
21any person for delivery in this state shall be prima facie
22evidence that such tangible personal property or specified
23digital products were sold for use in this state.
244. 8. a. The use tax rate of six percent is reduced to
25five percent on January 1, 2051.
26b. Notwithstanding paragraph “a”, the following apply:
27(1) If the use tax rate is six and one-eighth percent, the
28sales tax rate is reduced to five and one-eighth percent on
29January 1, 2051.
30(2) If the use tax rate is six and two-eighths percent, the
31sales tax rate is reduced to five and two-eighths percent on
32January 1, 2051.
33(3) If the use tax rate is six and three-eighths percent,
34the sales tax rate is reduced to five and three-eighths percent
35on January 1, 2051.
-115-1 Sec. 106. Section 423.14A, subsection 1, paragraph b,
2subparagraph (3), Code 2022, is amended to read as follows:
3(3) A person who is not required to collect and remit
4automobile rental excise tax pursuant to section 423C.3,
5subsection 3, shall not be considered a “marketplace
6facilitator” with respect to any sale of a transportation
7service under section 423.2, subsection 6, paragraph “bf”, or
8section 423.5, subsection 1, paragraph “d” 4, consisting of the
9rental of vehicles subject to registration which are registered
10for a gross weight of thirteen tons or less for a period of
11sixty days or less.
12 Sec. 107. Section 423.43, subsection 1, paragraph b, Code
132022, is amended to read as follows:
14b. Subsequent to the deposit into the general fund of the
15state and after the transfer of such revenues collected under
16chapter 423B, the department shall transfer one-sixth all of
17the following:
18(1) If the department receives the first certification
19described in section 423.5, revenues equaling one-eighth of
20one percent of the tax imposed by that section to the natural
21resources and outdoor recreation trust fund created in section
22461.31.
23(2) If the department receives the second certification
24described in section 423.5, revenues equaling two-eighths
25of one percent of the tax imposed by that section shall be
26transferred to the natural resources and outdoor recreation
27trust fund created in section 461.31.
28(3) If the department receives the third certification
29described in section 423.5, revenues equaling three-eighths of
30one percent of the tax imposed by that section to the natural
31resources and outdoor recreation trust fund created in section
32461.31.
33(4) (a) One-sixthof such remaining revenues to the secure
34an advanced vision for education fund created in section
35423F.2.
-116- 1(b) This paragraph subparagraph is repealed January 1,
22051.
3 Sec. 108. Section 423C.3, subsection 3, paragraph c, Code
42022, is amended to read as follows:
5c. The only sales the person and affiliates of the person
6facilitate that are subject to tax under chapter 423 are sales
7of a transportation service under section 423.2, subsection 6,
8paragraph “bf”, or section 423.5, subsection 1, paragraph “d” 4,
9consisting of the rental of vehicles subject to registration
10which are registered for a gross weight of thirteen tons or
11less for a period of sixty days or less.
12 Sec. 109. Section 423C.3, subsection 4, Code 2022, is
13amended to read as follows:
144. For any rental transaction for which a person is
15required to or elects to collect and remit the tax under this
16chapter, the person shall also be liable for the collection
17and remittance of any sales or use tax due on that transaction
18under section 423.2, subsection 6, paragraph “bf”, or section
19423.5, subsection 1, paragraph “d” 4, notwithstanding any other
20provision to the contrary in chapter 423.
21 Sec. 110. NEW SECTION. 461.31A Allocation of trust fund
22moneys to the clean water fund.
23On or after July 1 of each fiscal year and prior to any
24allocations to a trust fund account, an amount shall be
25transferred to the general account of the clean water fund
26created in section 466B.51. The transferred amount shall equal
27the amount credited to the assessment account of the clean
28water fund during prior fiscal years.
29 Sec. 111. Section 461.32, subsection 1, Code 2022, is
30amended to read as follows:
311. A natural resources account is created in the trust
32fund. Twenty-three After the transfer has been made from the
33trust fund to the clean water fund pursuant to section 461.31A,
34twenty-three percent of the remaining moneys credited to the
35trust fund shall be allocated to the trust fund’s natural
-117-1resources account.
2 Sec. 112. Section 461.33, subsection 1, Code 2022, is
3amended to read as follows:
41. A soil conservation and water protection account is
5created in the trust fund. Twenty After the transfer has been
6made from the trust fund to the clean water fund pursuant
7to section 461.31A, twenty percent of the remaining moneys
8credited to the trust fund shall be allocated to the trust
9fund’s soil conservation and water protection account.
10 Sec. 113. Section 461.34, subsection 1, Code 2022, is
11amended to read as follows:
121. A watershed protection account is created in the trust
13fund. Fourteen After the transfer has been made from the trust
14fund to the clean water fund pursuant to section 461.31A,
15fourteen percent of the remaining moneys credited to the
16trust fund shall be allocated to the trust fund’s watershed
17protection account.
18 Sec. 114. Section 461.35, Code 2022, is amended to read as
19follows:
20461.35 Iowa resources enhancement and protection fund —
21allocation.
22Thirteen After the transfer has been made from the trust
23fund to the clean water fund pursuant to section 461.31A,
24thirteen percent of the remaining moneys credited to the trust
25fund shall be allocated to the Iowa resources enhancement
26and protection fund created in section 455A.18 for further
27allocation as provided in section 455A.19.
28 Sec. 115. Section 461.36, subsection 1, Code 2022, is
29amended to read as follows:
301. A local conservation partnership account is created in
31the trust fund. Thirteen After the transfer from the trust
32fund has been made to the clean water fund pursuant to section
33461.31A, thirteen percent of the remaining moneys credited to
34the trust fund shall be allocated to the trust fund’s local
35conservation partnership account.
-118-1 Sec. 116. Section 461.37, subsection 1, Code 2022, is
2amended to read as follows:
31. A trails account is created in the trust fund. Ten After
4the transfer from the trust fund has been made to the clean
5water fund pursuant to section 461.31A, ten percent of the
6remaining moneys credited to the trust fund shall be allocated
7to the trust fund’s trails account.
8 Sec. 117. Section 461.38, subsection 1, Code 2022, is
9amended to read as follows:
101. A lake restoration account is created in the trust fund.
11Seven After the transfer from the trust fund has been made to
12the clean water fund pursuant to section 461.31A, ten percent
13of the remaining moneys credited to the trust fund shall be
14allocated to the account.
15 Sec. 118. Section 466B.2, Code 2022, is amended by adding
16the following new subsection:
17 NEW SUBSECTION. 01. “Commission” means the clean water
18commission created in section 466B.52.
19 Sec. 119. Section 466B.3, subsections 1 and 2, Code 2022,
20are amended to read as follows:
211. Council established. A water resources coordinating
22council is established within the department of agriculture
23and land stewardship. The council shall carry out the
24powers and duties described in this section in accordance
25with the policies and under the direction and supervision of
26the commission. The council shall advise the commission as
27required by the commission.
282. Purpose. The purpose of the council shall be to advise
29the commission regarding strategies and methods to preserve
30and protect Iowa’s water resources, and to coordinate the
31management of those resources in a sustainable and fiscally
32responsible manner. In the pursuit of this purpose providing
33advice to the commission and acting in accordance with its
34policies, and under its direction and supervision, the
35council shall use an integrated approach to water resource
-119-1management, recognizing that insufficiencies exist in current
2approaches and practices, as well as in funding sources and
3the utilization of funds. The integrated approach used by the
4council shall attempt to overcome old categories, labels, and
5obstacles with the primary goal of managing the state’s water
6resources comprehensively rather than compartmentally.
7 Sec. 120. Section 466B.3, subsection 3, unnumbered
8paragraph 1, Code 2022, is amended to read as follows:
9The success of the council’s efforts made under this
10subchapter shall ultimately be measured by the following
11outcomes:
12 Sec. 121. Section 466B.3, subsection 6, paragraph c, Code
132022, is amended to read as follows:
14c. The council, acting in accordance with the policies and
15under the direction and supervision of the commission, shall
16develop recommendations for policies and funding promoting a
17watershed management approach to reduce the adverse impact
18of future flooding on this state’s residents, businesses,
19communities, and soil and water quality. The council and
20commission shall consider policies and funding options for
21various strategies to reduce the impact of flooding including
22but not limited to additional floodplain regulation; wetland
23protection, restoration, and construction; the promulgation
24and implementation of statewide storm water management
25standards; conservation easements and other land management;
26perennial ground cover and other agricultural conservation
27practices; pervious pavement, bioswales, and other urban
28conservation practices; and permanent or temporary water
29retention structures. In developing recommendations, the
30council and commission shall consult with hydrological and land
31use experts, representatives of cities, counties, drainage and
32levee districts, agricultural interests, and soil and water
33conservation districts, and other urban and regional planning
34experts.
35 Sec. 122. Section 466B.31, subsection 1, Code 2022, is
-120-1amended to read as follows:
21. a. A watershed planning advisory council is established
3for purposes of assembling a diverse group of stakeholders
4to review research and make recommendations to various state
5entities regarding methods to protect water resources in the
6state, assure an adequate supply of water, mitigate and prevent
7floods, and coordinate the management of those resources in
8a sustainable, fiscally responsible, and environmentally
9responsible manner.
10b. The council shall carry out the powers and duties
11described in this section in accordance with the policies
12and under the direction and supervision of the commission.
13The council shall advise the commission as required by the
14commission.
15c. The advisory commission shall supervise the council may
16seek in seeking input from councils of governments or other
17organizations in the development of its recommendations. The
18advisory council shall meet once a year and at other times as
19deemed necessary to meet the requirements of this section.
20The advisory council may appoint a task force to assist the
21advisory council in completing its duties.
22 Sec. 123. Section 466B.31, subsection 3, unnumbered
23paragraph 1, Code 2022, is amended to read as follows:
24By December 1 of each year, the watershed planning advisory
25council with approval by the commission shall submit a report
26to the governor, the general assembly, the department of
27agriculture and land stewardship, the department of natural
28resources, and the water resources coordinating council. The
29report shall include recommendations regarding all of the
30following:
31 Sec. 124. Section 466B.42, Code 2022, is amended to read as
32follows:
33466B.42 Water quality initiative.
34The division shall establish a A water quality initiative
35is established in order to assess and reduce nutrients in
-121-1this state’s watersheds, including subwatersheds and regional
2watersheds, and for implementing its responsibilities under
3the Iowa nutrient reduction strategy. The division commission
4 shall establish oversee and the division, acting in accordance
5with the policies and under the direction and supervision of
6the commission, shall administer the water quality initiative
7and advise the commission as required by the commission. As
8part of the initiative, the division shall administer projects
9to reduce nutrients in surface waters from nonpoint sources
10in a scientific, reasonable, and cost-effective manner. The
11division shall utilize a pragmatic, strategic, and coordinated
12approach with the goal of accomplishing reductions over time.
13To evaluate the progress achieved over time toward the goals
14of the Iowa nutrient reduction strategy and the United States
15environmental protection agency gulf hypoxia action plan, the
16baseline condition shall be calculated for the time period from
171980 to 1996.
18 Sec. 125. NEW SECTION. 466B.51 Clean water fund.
191. A clean water fund is created in the state treasury
20under the management and control of the clean water commission.
21The clean water fund is composed of a general account, an
22assessment account, and an expenditures account.
232. The clean water fund’s general account includes moneys
24transferred from the natural resources and outdoor recreation
25trust fund pursuant to section 461.31A, moneys appropriated
26to the general account from the general assembly, and other
27moneys available to and obtained or accepted by the commission,
28including moneys from public or private sources. However, the
29general account shall not include moneys transferred from a
30commodity organization as described in subsection 3. Except as
31provided in subsection 3, all moneys received by the commission
32for deposit into the clean water fund shall be credited to the
33general account.
343. The clean water fund’s assessment account includes the
35following moneys collected and transferred to the account from
-122-1the following commodity organizations:
2a. The Iowa dairy industry commission as established in
3chapter 179 or the Iowa state dairy association as recognized
4in that chapter, which shall transfer moneys collected from the
5state assessment for clean water as provided in that chapter,
6including section 179.5.
7b. The Iowa beef cattle producers association as established
8in chapter 181 which shall transfer moneys from the state
9assessment as provided in that chapter, including section
10181.13.
11c. The Iowa sheep and wool promotion board established
12pursuant to chapter 182 which shall transfer moneys from the
13state assessment as provided in that chapter, including section
14182.18.
15d. The Iowa pork producers council as established in chapter
16183A, or the Iowa pork producers association as recognized
17in that chapter, which shall transfer moneys from the state
18assessment as provided in that chapter, including section
19183A.7.
20e. The Iowa egg council as established in chapter 184 which
21shall transfer moneys from the state assessment as provided in
22that chapter, including section 184.13.
23f. The Iowa turkey marketing council as established in
24chapter 184A which shall transfer moneys from the state
25assessment as provided in that chapter, including section
26184A.4.
27g. The Iowa soybean association as recognized in chapter
28185 which shall transfer moneys from the state assessment as
29provided in that chapter, including section 185.26.
30h. The Iowa corn promotion board as established in chapter
31185C which shall transfer moneys from the state assessment as
32provided in that chapter, including section 185C.26.
334. The clean water fund’s expenditures account only
34includes moneys transferred from the general account and the
35state assessment account as provided in this section.
-123- 15. a. Moneys in the clean water fund shall not be used for
2any purpose other than described in this section.
3b. Moneys in the general account shall not be used for any
4purpose other than for transfer to the expenditures account.
5c. Moneys in the assessment account shall not be used for
6any purpose other than to do the following:
7(1) Pay administrative expenses which are limited to all of
8the following:
9(a) Reimbursing the department of agriculture and land
10stewardship or a commodity organization for all reasonable
11costs of conducting a referendum to determine if a state
12assessment for clean water is to be established, continued, or
13terminated. The division shall apply to the executive council
14if necessary to receive moneys required to pay for reasonable
15costs of conducting a referendum as provided in section 7D.10B.
16(b) Remitting refunds of moneys to persons who have paid a
17state assessment for clean water to a commodity organization,
18if the application for a refund has been approved by the
19commodity organization and submitted to the department as
20required by the division of soil conservation and water
21quality.
22(c) Paying reasonable expenses associated with the
23collection and transfer of moneys associated with the
24collection of the state assessment for clean water and the
25processing of refund applications associated with such
26collection.
27(d) Transfer remaining moneys to the expenditures account
28as provided in this section.
296. Moneys in the fund’s expenditures account are
30appropriated to the clean water commission to support programs
31and projects administered to improve the state’s watersheds
32and surface waters, including but not limited to projects
33associated with the water quality initiative established
34pursuant to section 466B.42. Moneys in the expenditures
35account shall be used to support soil conservation and
-124-1watershed protection, the installation of conservation
2practices, and watershed protection improvements as provided in
3chapters 161A, 161C, 461A, and 466. Moneys in the expenditures
4account shall also be used to support water quality programs
5and projects administered by the Iowa finance authority under
6chapter 16.
77. Notwithstanding section 8.33, moneys in the clean
8water fund shall not revert. Notwithstanding section 12C.7,
9subsection 2, interest or earnings on moneys in the fund shall
10be credited to the fund.
11 Sec. 126. NEW SECTION. 466B.52 Clean water commission —
12appointment and administration.
131. A clean water commission is created which shall be housed
14in the division of soil conservation and water quality of the
15department of agriculture and land stewardship.
162. The commission shall be comprised of nine voting members
17appointed by the governor.
183. The commission shall also be comprised of four
19legislative members who shall serve in a nonvoting, ex officio
20capacity. The legislative members shall include all of the
21following:
22a. Two members of the senate. One senator shall be
23appointed by the majority leader of the senate and one senator
24shall be appointed by the minority leader of the senate.
25b. Two members of the house of representatives. One
26member shall be appointed by the speaker of the house of
27representatives and one member shall be appointed by the
28minority leader of the house of representatives.
294. The commission shall also be comprised of persons
30appointed by commodity organizations described in section
31466B.51 who shall serve in a nonvoting, ex officio capacity.
32Each commodity organization may appoint one person if producers
33who are members of the commodity organization have approved
34the establishment of a state assessment for clean water to be
35transferred to the clean water fund created in section 466B.51.
-125- 15. Voting members shall serve four-year terms and may be
2reappointed. The initial terms of the voting members shall
3be staggered at the discretion of the governor. Nonvoting
4members shall serve at the pleasure of the persons or commodity
5organizations making their appointments.
66. Sections 69.16, 69.16A, and 69.19 apply to the
7voting members. The voting members are subject to senate
8confirmation.
97. a. A member, other than a legislative member, is
10eligible to receive compensation as provided in section 7E.6,
11and shall be reimbursed for actual and necessary expenses
12incurred in performance of the members’ duties. All expenses
13shall be paid from appropriations for such purposes and the
14commission shall be subject to the budget requirements of
15chapter 8.
16b. A legislative member serves for a term as provided in
17section 69.16B and is eligible for per diem and expenses as
18provided in section 2.10.
198. The commission shall meet in January of each year for the
20purpose of electing one of its voting members as chairperson.
219. The commission shall meet on a regular basis and at the
22call of the chairperson or upon the written request to the
23chairperson of five or more voting members. Written notice
24of the time and place of the meeting shall be given to each
25member.
2610. A majority of voting members constitutes a quorum,
27and the affirmative vote of a majority of the voting members
28is necessary for any action taken by the board, except that a
29lesser number may adjourn a meeting.
3011. Any vacancy in the membership of the commission shall
31be filled in the same manner as regular appointments are made
32for the unexpired portion of the regular term. A vacancy in
33the membership of the commission does not impair the rights of
34a quorum to exercise all rights and perform all duties of the
35commission.
-126- 112. A person shall not serve as a member of the commission
2if the person has an interest in a contract or job of work or
3material or the profits thereof or service to be performed
4for the department of agriculture and land stewardship or
5department of natural resources. Any member of the commission
6who accepts employment with or acquires any stock, bonds, or
7other interest in any company or corporation doing business
8with the department of agriculture and land stewardship or the
9department of natural resources shall be disqualified from
10remaining a member of the commission.
1113. The department of agriculture and land stewardship in
12cooperation with the department of natural resources shall
13assist the commission by doing all of the following:
14a. Providing the commission with necessary facilities,
15items, and clerical support.
16b. Performing administrative functions necessary for the
17management of the commission.
18 Sec. 127. NEW SECTION. 466B.53 Clean water commission —
19powers and duties.
201. The purpose of the clean water commission is to identify
21and finance methods to improve surface water quality, including
22by reducing contributing contaminant loads to receiving surface
23waters and reducing soil erosion and sediment loss.
242. In furthering the purpose set forth in subsection 1, the
25clean water commission shall do all of the following:
26a. Develop comprehensive water quality policies and plans
27that identify existing plans, programs, and projects. The
28commission shall use existing data and amend, augment, and
29consolidate existing plans or strategies which have improved or
30which promise to improve water quality.
31b. Identify additional water quality improvement needs on a
32watershed basis, including the need to develop new or innovate
33programs or projects.
34c. Measure the effectiveness and results of programs and
35projects according to performance measures and associated
-127-1benchmarks. The data demonstrating accountability collected by
2the department shall be made readily available and maintained
3in a computer-readable format.
43. The clean water commission shall establish objectives
5of programs described in subsection 2 to be achieved by
6dates identified by the commission which may include program
7timelines and milestones. The commission shall measure and
8monitor progress toward achieving program objectives.
94. The commission shall develop comprehensive water quality
10policies and plans that integrate existing plans, programs,
11and projects in accordance with the Iowa nutrient reduction
12strategy. The commission shall use existing data and amend,
13augment, and consolidate existing plans or strategies which
14have improved or which promise to improve water quality. The
15commission shall also develop new comprehensive water quality
16policies and plans that integrate existing plans, programs, and
17projects. The information collected by the department shall be
18made readily available and maintained in a computer-readable
19format.
205. The commission shall identify additional water quality
21improvement needs on a watershed basis, including the need to
22develop new or innovate programs or projects.
236. By October 1, 2024, and by October 1 of each year
24thereafter, the commission shall submit a report to the
25governor and the general assembly used to support the programs
26described in subsection 2. A report shall include all of the
27following:
28a. A description and update of the current status of water
29quality programs and associated projects, and the expenditure
30of moneys appropriated to support the programs and associated
31projects administered by state entities, including but not
32limited to the department of agriculture and land stewardship,
33the department of natural resources, Iowa state university
34of science and technology, the Iowa finance authority, and
35watershed management authorities.
-128- 1b. An evaluation of the successes and failures of a
2water quality program and any associated project in meeting
3the program’s objectives. The report shall include any
4legislative proposals to enact, amend, or repeal statutes and
5any administrative proposals to adopt, revise, or rescind
6administrative rules.
77. The Iowa finance authority, the department of natural
8resources, and the department of agriculture and land
9stewardship shall cooperate with the commission in providing
10the commission with all information necessary for the
11commission to carry out the provisions of this section.
12 Sec. 128. NEW SECTION. 466B.54 Clean water commission —
13report.
141. The clean water commission, in cooperation with the
15department of agriculture and land stewardship, the department
16of natural resources, and the Iowa finance authority shall
17prepare and submit a clean water evaluation and expenditure
18report to the governor and general assembly by January 15,
192024.
202. The clean water evaluation and expenditure report shall
21include all of the following:
22a. A description of current clean water programs and
23projects, and the expenditure of moneys appropriated to
24support those programs and projects. The report shall evaluate
25successes and failures of each program and project in meeting
26water quality objectives. The report may also recommend
27methods to improve the program.
28b. A plan for allocating moneys in the expenditures account
29of the clean water fund created in section 466B.51. The plan
30shall include a formula which takes into account the extent to
31which moneys may be used for all of the following:
32(1) Watersheds requiring immediate improved surface water
33quality.
34(2) The establishment of infrastructure, conservation
35measures, and practices that reduce contributing nutrient
-129-1loads, associated sediment, or contaminants from nonpoint
2sources to surface waters in a scientific, reasonable, and
3cost-effective manner.
4(3) The administration of programs or projects in a manner
5that is consistent with the Iowa nutrient reduction strategy.
6(4) The degree to which political subdivisions or
7stakeholders have demonstrated a willingness and have the
8resources to participate in programs or projects.
9(5) The degree to which clean water programs can attract
10additional funding from private and public sources including
11federal funding.
123. The clean water evaluation and expenditure report shall
13include a detailed plan for consolidating all water quality
14and soil conservation initiatives and programs and associated
15projects administered by the department of agriculture and
16land stewardship, the department of natural resources, and the
17Iowa finance authority under the overall supervision of the
18commission. The plan shall include any legislative proposals
19to enact, amend, or repeal statutes and any administrative
20proposals to adopt, revise, or rescind administrative rules.
214. This section is repealed July 1, 2024.
22 Sec. 129. NEW SECTION. 466B.55 Secretary of agriculture,
23treasurer of state, and auditor of state — certifications.
241. By March 1 of each fiscal year, the secretary of
25agriculture, the treasurer of state, and the auditor of state
26shall meet to certify that one or more commodity organizations
27are collecting a state assessment for clean water as described
28in section 466B.51. The secretary of agriculture shall prepare
29a certification for delivery to the Iowa administrative code
30editor for publication in the Iowa administrative bulletin.
312. By March 1 of each fiscal year, the secretary of
32agriculture, the treasurer of state, and the auditor of state
33shall together verify the total amount of moneys collected
34by all commodity organizations certified under subsection 1
35during the preceding fiscal year. If a commodity organization
-130-1was certified after the end of the preceding fiscal year, the
2commodity organization shall be deemed to have collected a
3state assessment for clean water at the rate in effect on the
4date of the commodity organization’s certification.
53. By April 1 of each fiscal year when the secretary of
6agriculture, the treasurer of state, and the auditor of state
7verify that during the preceding fiscal year twenty million
8dollars was collected by all commodity organizations under
9subsection 2, the secretary of agriculture shall prepare a
10certification for delivery to all of the following:
11a. The director of revenue.
12b. The administrative code editor who shall publish the
13certification in the Iowa administrative bulletin.
14c. The Iowa Code editor.
154. This section is repealed on July 1 of the fiscal year in
16which the secretary of agriculture prepares and delivers the
17third certification as required in subsection 3.
18DIVISION X
19ADMINISTRATION
20 Sec. 130. NAME CHANGE TO REFERENDUM FOR DIRECT USE. This
21Act does not require the department of agriculture and land
22stewardship or a commodity organization described in section
23466B.51, as enacted in this Act, to conduct a referendum
24because of this Act’s reference to a referendum as a referendum
25for direct use.
26EXPLANATION
27The inclusion of this explanation does not constitute agreement with
28the explanation’s substance by the members of the general assembly.
29This bill relates to agricultural commodity organizations
30representing producers of that commodity that are authorized
31to impose an excise tax or “assessment” (and commonly referred
32to as a “checkoff”) on the commodity when first sold by the
33producer to a first purchaser. The goal of the assessment
34is to fund promotional activities which involve market
35development, research, and education. The bill refers to this
-131-1tax as an assessment (or state assessment) for direct use.
2The commodity organizations include the Iowa dairy industry
3commission or Iowa state dairy association (Code chapter 179),
4Iowa beef cattle producers association (Code chapter 181), Iowa
5sheep and wool promotion board (Code chapter 182), Iowa pork
6producers council or Iowa pork producers association (Code
7chapter 183A), Iowa egg council (Code chapter 184), the Iowa
8turkey marketing council (Code chapter 184A), the Iowa soybean
9association (Code chapter 185), and the Iowa corn promotion
10board (Code chapter 185C). The bill requires a commodity
11organization to establish a separate tax referred to as a
12state assessment for clean water, if approved by a majority of
13its members at a referendum. The bill also requires certain
14commodity organizations to conduct a special referendum to
15increase the rate of the assessment for clean water. The rate
16of the state assessment for clean water is established by the
17governing body of the commodity organization not to exceed the
18assessment for direct use or national (federal) assessment or
19both. The referendum would be conducted in the same manner
20as an initial, special, or succeeding referendum conducted by
21the commodity organization under its specific Code chapter. A
22special state assessment for clean water if imposed could be
23continued or terminated in the same manner as the commodity
24organization’s assessment for direct use. Moneys from the
25state assessment for clean water would be collected by the
26commodity organization and transferred to a newly created clean
27water fund.
28The bill establishes a clean water commission housed in
29the division of soil conservation and water quality of the
30department of agriculture and land stewardship. The commission
31is composed of nine voting members appointed by the governor,
32four legislative members who serve in a nonvoting, ex officio
33capacity, and persons appointed by the commodity organizations,
34who also serve in a nonvoting, ex officio capacity.
35Appointments are contingent on the commodity organization
-132-1having approved the establishment of a state assessment for
2clean water to be transferred to the clean water fund. The
3purpose of the commission is to finance methods to improve
4surface water quality, including by reducing contributing
5contaminant loads to receiving surface waters and reducing soil
6erosion and sediment loss. The commission is responsible for
7overseeing the water quality initiative as administered by the
8division of soil conservation and water quality.
9Moneys collected from the state assessment for clean
10water are to be credited to the clean water fund which
11is under the supervision of the commission. The fund is
12composed of a general account, an assessment account, and an
13expenditures account. The fund’s general account includes
14moneys transferred from the constitutionally protected natural
15resources and outdoor recreation trust fund (Code section
16461.31), moneys appropriated by the general assembly, and other
17moneys available to and obtained or accepted by the commission.
18Moneys collected from the state assessment for clean water
19are to be credited to the assessment account. The bill also
20includes an expenditures account which only includes moneys
21transferred from the general account and the assessment account
22for purposes of financing methods to improve surface water
23quality. Moneys transferred from the assessment account are
24to be used to reimburse the department of agriculture and land
25stewardship or a commodity organization for reasonable costs
26of conducting a referendum to determine if a state assessment
27for clean water is to be established, continued, or terminated.
28The commission can also apply to the executive council for
29moneys required to pay for reasonable costs of conducting a
30referendum. Moneys deposited into the expenditures account
31may also be used to pay refunds to producers who have paid the
32state assessment for clean water if the refund application has
33been approved by the commodity organization.
34The bill provides for possible progressive increases
35in state sales and use taxes. An increased amount must be
-133-1credited to the natural resources and outdoor recreation trust
2fund according to a constitutional amendment (Article VII,
3section 10). The amount credited to the fund must be equal
4to the amount generated by an increase in the state sales tax
5rate occurring after the effective date of the constitutional
6amendment, not to exceed a rate of three-eighths of one percent
7(0.375). The state sales tax rate has not been increased since
8before November 2, 2010, the date when the constitutional
9amendment was ratified. The bill provides that an increase of
10one-eighth of one percent in the sales tax is triggered each
11of three fiscal years when the secretary of agriculture, the
12treasurer of state, and the auditor of state certify that a
13total of $20 million in state assessments for clean water was
14collected by participating commodity organizations during the
15preceding fiscal year. The bill revises the allocations from
16the natural resources and outdoor recreation trust fund as
17set forth in statute (Code chapter 461). On July 1 of each
18fiscal year, an amount of moneys in the Code chapter 461 trust
19fund equal to the amount in the clean water fund’s assessment
20account is to be transferred to the clean water fund’s general
21account. The moneys remaining in the Code chapter 461 trust
22fund are to be allocated on a percentage basis as set forth in
23statute.
24The commission, in cooperation with the department of
25agriculture and land stewardship, the department of natural
26resources, and the Iowa finance authority, must submit a
27report to the governor and general assembly by January 15,
282024, which includes a description of current clean water
29programs and projects and a detailed plan for consolidating all
30water quality and soil conservation initiatives and programs
31and associated projects administered by the department of
32agriculture and land stewardship, the department of natural
33resources, and the Iowa finance authority under the overall
34supervision of the commission.
-134-da/ns