Print
Senate Study Bill 1205 - IntroducedA Bill ForAn Act 1providing for financing of certain agricultural
2commodity programs, by reducing and eliminating fees imposed
3on licensed grain dealers and warehouse operators, replacing
4those moneys with moneys collected from a percentage of
5state assessments imposed on the sale of corn and soybeans,
6increasing moneys deposited into the grain depositors and
7sellers indemnity fund, increasing indemnification amounts,
8and making appropriations.
9BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 Section 1. Section 185.1, subsection 7, Code 2023, is
2amended to read as follows:
37. “Market development” means to engage improve the economic
4conditions of soybean production, storage, and marketing, by
5engaging in research and educational programs directed toward
6better and more efficient production, storage, and utilization
7of soybeans; to provide providing methods and means, including
8but not limited to, public relations and other promotion
9techniques for the maintenance of present markets; to provide
10 ensuring the security of soybeans stored and marketed in
11commercial channels; providing for the development of new or
12larger domestic and foreign markets; and to provide providing
13 for the prevention, modification, or elimination of trade
14barriers which obstruct the free flow of soybeans.
15 Sec. 2. Section 185.13, Code 2023, is amended by adding the
16following new subsection:
17 NEW SUBSECTION. 7. Accept gifts or federal or state grants
18received by the board. Any moneys accepted by the board
19shall be deposited in an account of a qualified financial
20institution.
21 Sec. 3. Section 185.21, subsection 2, Code 2023, is amended
22to read as follows:
232. The state assessment shall be paid deposited into the
24soybean promotion marketing fund established in section 185.26.
25 Sec. 4. Section 185.26, Code 2023, is amended to read as
26follows:
27185.26 Administration Deposit of moneys collected from state
28assessment — soybean marketing fund — transfers.
291. The Moneys from the state assessment collected by
30the board from the sale of soybeans shall be deposited in a
31special fund known as the soybean promotion marketing fund,
32established in the office of the treasurer of state. The fund
33may also contain any gifts or federal or state grant received
34by the board. Moneys collected, deposited into in the soybean
35marketing fund, and transferred to the board, as provided in
-1-1this chapter, shall be subject to audit by the auditor of
2state. The
32. a. Except as provided in paragraph “b”, thedepartment
4of administrative services shall transfer moneys from the
5soybean marketing fund to the board for deposit into in an
6account known as the soybean checkoff account which shall be
7established by the board in a qualified financial institution.
8The department of administrative services shall transfer the
9moneys into to the soybean checkoff account as provided in a
10resolution adopted by the board. However, the department is
11only required to transfer moneys once during each day and only
12during hours when the offices of the state are open. From
13moneys collected, deposited, and transferred to the soybean
14checkoff account as provided in this section, the board shall
15first pay the costs of referendums, elections, and other
16expenses incurred in the administration of this chapter,
17before the transferred moneys may be expended to carry out the
18purposes of the board as provided in section 185.11. The board
19shall strictly segregate moneys in the soybean checkoff account
20from all other moneys of the board. Moneys in the soybean
21checkoff account shall be expended by the board exclusively
22for use as provided in section 185.28, including for carrying
23out the purposes of the board as provided in section 185.11.
24The soybean checkoff account shall be subject to audit by the
25auditor of state.
26b. (1) Except as otherwise provided in subparagraph
27(2), twenty-five percent of moneys deposited in the soybean
28marketing fund shall be transferred to the grain depositors
29and sellers indemnity fund created in section 203D.3 for use
30as provided in section 185.28.
31(2) If the department of agriculture and land stewardship
32delivers a state assessment transfer suspension notice to the
33department of administrative services as provided in section
34203D.3B, moneys that would otherwise be transferred to the
35grain depositors and sellers indemnity fund as described in
-2-1subparagraph (1) shall instead be transferred to the soybean
2checkoff account for use by the board in the same manner
3provided in paragraph “a”.
4(3) If the department of agriculture and land stewardship
5delivers a state assessment transfer reinstatement notice
6to the department of administrative services as provided in
7section 203D.3B, moneys that would otherwise be transferred to
8the soybean checkoff account under subparagraph (2) shall again
9be transferred to the grain depositors and sellers indemnity
10fund in the same manner described in subparagraph (1).
11c. The department of administrative services is only
12required to transfer moneys under this subsection to the
13soybean checkoff account and the grain depositors and sellers
14indemnity fund once during each day and only during hours when
15the offices of the state are open.
162. 3. The fiscal year of the association shall commence on
17October 1 and end on September 30.
18 Sec. 5. Section 185.28, Code 2023, is amended to read as
19follows:
20185.28 Use of moneys — appropriation appropriations.
211. All Except as provided in subsection 2, moneys collected,
22deposited, and transferred to or accepted by the board as
23provided in this chapter, are appropriated and shall be used
24for the administration of this chapter by the board and for the
25payment of claims by the board based upon obligations incurred
26in the performance of board activities and functions provided
27in this chapter.
282. Moneys transferred from the soybean marketing fund to
29the grain depositors and sellers indemnity fund as provided in
30section 185.26 are appropriated for use by the department of
31agriculture and land stewardship and the Iowa grain indemnity
32fund board as provided in chapter 203D.
33 Sec. 6. Section 185.30, Code 2023, is amended to read as
34follows:
35185.30 Bond.
-3- 1Every A person occupying a position of trust with the
2board and acting under any provisions a provision of this
3chapter shall provide post a bond in an amount required by the
4board. The premium for the bond shall be paid out of moneys
5transferred from in the soybean promotion fund to the board
6pursuant to checkoff account established in section 185.26.
7 Sec. 7. Section 185.33, Code 2023, is amended to read as
8follows:
9185.33 Report.
10The board shall each year prepare and submit a report
11summarizing the activities of the board under this chapter to
12the auditor of state and the secretary of agriculture. The
13report shall show all income, expenses, and other relevant
14information concerning fees moneys collected by the board,
15deposited by the board in an account, transferred to the board,
16 and expended by the board under the provisions of this chapter.
17 Sec. 8. Section 185.34, subsection 2, paragraph b,
18subparagraph (2), Code 2023, is amended to read as follows:
19(2) A public body for purposes of chapter 12C. Moneys
20deposited into the soybean checkoff account as established in
21section 185.26 shall be deemed to be public funds under chapter
2212C.
23 Sec. 9. Section 185.34, Code 2023, is amended by adding the
24following new subsection:
25 NEW SUBSECTION. 3. Moneys deposited in the soybean
26marketing fund and transferred to the soybean checkoff account
27as established in section 185.26 or the grain depositors and
28sellers indemnity fund as provided in that section shall be
29deemed to be public funds under chapter 12C.
30 Sec. 10. Section 185.35, subsection 2, Code 2023, is amended
31to read as follows:
322. Subsection 1 does not apply to a any of the following:
33a. Acommunication or action taken by the board if any of
34the following applies:
35a. (1) The board may communicate or take action directed
-4-1to an appropriate government official or government relating
2to the marketing of soybeans or soybean products to a foreign
3country.
4b. (2) The communication or action relates to the
5prevention, modification, or elimination of trade barriers.
6b. Moneys transferred to the grain depositors and sellers
7indemnity fund as provided in section 185.26.
8 Sec. 11. Section 185C.1, subsection 9, Code 2023, is amended
9to read as follows:
109. “Market development” means to engage improve the economic
11conditions of corn production, storage, and marketing, by
12engaging in research and educational programs directed toward
13better and more efficient production, storage, and utilization
14of corn; to provide providing methods and means, including but
15not limited to, public relations and other promotion techniques
16for the maintenance of present markets; to provide ensuring
17the security of corn to be stored and marketed in commercial
18channels; providing for the development of new or larger
19domestic and foreign markets; and to provide providing for the
20prevention, modification, or elimination of trade barriers
21which obstruct the free flow of corn.
22 Sec. 12. Section 185C.11, subsection 1, Code 2023, is
23amended by adding the following new paragraphs:
24 NEW PARAGRAPH. j. Administer the corn checkoff account as
25provided in section 185C.26.
26 NEW PARAGRAPH. k. Accept gifts, rents, royalties, interest,
27license fees, or federal or state grants. Any moneys accepted
28by the board shall be deposited in an account of a qualified
29financial institution.
30 Sec. 13. Section 185C.21, subsection 1, Code 2023, is
31amended to read as follows:
321. The board shall determine and set the state assessment
33rate. State assessments collected pursuant to the promotional
34order shall be paid into the corn promotion marketing fund
35established in section 185C.26. Except as provided in
-5-1subsection 2, a state assessment shall not exceed one-quarter
2of one cent per bushel upon corn marketed in this state.
3 Sec. 14. Section 185C.24, subsections 1 and 2, Code 2023,
4are amended to read as follows:
51. The board shall be suspended and board operations and
6terms of members shall cease upon either any of the following
7events:
8a. The state assessment is terminated pursuant to section
9185C.25.
10b. The state assessment is suspended pursuant to section
11185C.25A.
122. However, notwithstanding subsection 1, the board
13shall continue to operate until proceeds remaining in moneys
14transferred from the corn promotion marketing fund to the corn
15checkoff account are disbursed. Disbursement shall be made
16as provided for payment the transfer of moneys under section
17185C.26.
18 Sec. 15. Section 185C.26, Code 2023, is amended to read as
19follows:
20185C.26 Deposit of moneys — corn promotion marketing fund
21— transfers.
221. A Moneys from the state assessment collected by the Iowa
23corn promotion board from a the sale of corn shall be deposited
24in the office of the treasurer of state in a special fund known
25as the corn promotion marketing fund established in the office
26of the treasurer of state. The fund may include any gifts,
27rents, royalties, interest, license fees, or a federal or state
28grant received by the board. Moneys collected, deposited
29in the corn marketing fund, and transferred to the board as
30provided in this chapter shall be subject to audit by the
31auditor of state. The auditor of state may seek reimbursement
32for the cost of the audit from moneys deposited in the corn
33marketing fund as provided in this chapter. The department of
34administrative services shall transfer moneys from the fund
352. a. Except as provided in paragraph “b”, the department
-6-1of administrative services shall transfer moneys deposited
2in the corn marketing fundto the board for deposit into in
3 an account known as the corn checkoff account which shall be
4 established by the board in a qualified financial institution.
5The department of administrative services shall transfer the
6moneys to the corn checkoff account as provided in a resolution
7adopted by the board. However, the department is only required
8to transfer moneys once during each day and only during hours
9when the offices of the state are open. From moneys collected,
10 transferred to the corn checkoff account, the board shall first
11pay all the direct and indirect costs incurred by the secretary
12and the costs of referendums, elections, and other expenses
13incurred in the administration of this chapter, before the
14transferred moneys may be expended to carry for other uses as
15provided in section 185C.28, including for carrying out the
16purposes of this chapter as provided in section 185C.11.
17b. (1) Except as otherwise provided in subparagraph (2),
18twenty-five percent of moneys deposited in the corn marketing
19fund shall be transferred to the grain depositors and sellers
20indemnity fund created in section 203D.3 for use as provided
21in section 185C.28.
22(2) If the department of agriculture and land stewardship
23delivers a state assessment transfer suspension notice to the
24department of administrative services as provided in section
25203D.3B, moneys that would otherwise be transferred to the
26grain depositors and sellers indemnity fund as described in
27subparagraph (1) shall instead be transferred to the corn
28checkoff account for use by the board in the same manner
29provided in paragraph “a”.
30(3) If the department of agriculture and land stewardship
31delivers a state assessment transfer reinstatement notice
32to the department of administrative services as provided in
33section 203D.3B, moneys that would otherwise be transferred to
34the corn checkoff account under subparagraph (2) shall again be
35transferred to the grain depositors and sellers indemnity fund
-7-1in the same manner described in subparagraph (1).
2c. The department of administrative services is only
3required to transfer moneys under this subsection to the corn
4checkoff account and the grain depositors and sellers indemnity
5fund once during each day and only during hours when the
6offices of the state are open.
7 Sec. 16. Section 185C.28, Code 2023, is amended to read as
8follows:
9185C.28 Use of moneys — appropriation appropriations.
101. Moneys deposited in the corn promotion fund and
11transferred to Except as provided in subsection 2, moneys
12transferred or accepted by the board, as provided in section
13185C.26, including federal moneys to the extent permitted
14by federal law, are appropriated and shall be used for
15the administration of this chapter and for the payment of
16claims based upon obligations incurred in the performance of
17activities and functions provided in this chapter.
182. Moneys transferred from the corn marketing fund to the
19grain depositors and sellers indemnity fund as provided in
20section 185C.26 are appropriated for use by the department of
21agriculture and land stewardship and the Iowa grain indemnity
22fund board as provided in chapter 203D.
23 Sec. 17. Section 185C.29, subsection 1, Code 2023, is
24amended to read as follows:
251. After the direct and indirect costs incurred by the
26secretary and the costs of elections, referendums, necessary
27board expenses, and administrative costs have been paid, at
28least seventy-five percent of the remaining moneys from a state
29assessment deposited in the corn promotion marketing fund shall
30be used to carry out the purposes of the board as provided in
31section 185C.11.
32 Sec. 18. Section 185C.30, Code 2023, is amended to read as
33follows:
34185C.30 Bond.
35Every person occupying a position of trust with the board
-8-1and acting under any provisions a provision of this chapter
2shall give post a bond in such amount as may be required by the
3board, the. The premium for which the bond shall be paid out of
4moneys in the corn promotion fund checkoff account established
5in section 185C.26.
6 Sec. 19. Section 185C.33, Code 2023, 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 moneys collected by the board,
14deposited by the board into an account, transferred to the
15board, and expended by the board under the provisions of this
16chapter.
17 Sec. 20. Section 185C.34, Code 2023, is amended to read as
18follows:
19185C.34 Not a state agency — public funds.
201. The Except as provided in subsection 2, the Iowa corn
21promotion board is not a state agency.
222. The board is deemed to be a public body for purposes of
23chapter 12C.
243. Moneys deposited in the corn marketing fund and
25transferred to the corn checkoff account as established in
26section 185C.26 or the grain depositors and sellers indemnity
27fund as provided in that section shall be deemed to be public
28funds under chapter 12C.
29 Sec. 21. Section 203.1, Code 2023, is amended by adding the
30following new subsection:
31 NEW SUBSECTION. 7A. “Fund” means the grain depositors and
32sellers indemnity fund created in section 203D.3.
33 Sec. 22. Section 203.4, Code 2023, is amended to read as
34follows:
35203.4 Participation in indemnity fund required.
-9- 1A grain dealer licensed or required to be licensed pursuant
2to section 203.3 shall participate in and comply with the grain
3depositors and sellers indemnity fund as provided in chapter
4203D.
5 Sec. 23. Section 203.5, subsections 1, 2, 3, and 4, Code
62023, are amended to read as follows:
71. a. Upon the filing of an application on a form
8prescribed by the department and compliance with the terms and
9conditions of this chapter including rules of the department,
10the department shall issue the applicant a grain dealer’s
11license. The license expires at the end of the third calendar
12month following the close of the grain dealer’s fiscal year.
13A grain dealer’s license may be renewed annually by filing a
14renewal application on a form prescribed by the department. An
15application for renewal must be received by the department on
16or before the end of the third calendar month following the
17close of the grain dealer’s fiscal year.
18b. The department shall not issue approve an application for
19the issuance or renewal of a grain dealer’s license unless the
20applicant pays to the department all of the following fees:
21(1) For the issuance of a license, all of the following: a
22license fee imposed under section 203.6.
23(a) A license fee imposed under section 203.6.
24(b) (2) (a) A In addition to subparagraph (1), for the
25issuance of a license, a participation fee imposed under
26section 203D.3A chapter 203D, including section 203D.3B, and
27any delinquent participation fee imposed under a previous
28license as provided in that section chapter.
29(b) This subparagraph is repealed July 1, 2025.
30(2) (3) For the renewal of a license, all of the following:
31 a renewal fee imposed under section 203.6.
32(a) A renewal fee imposed under section 203.6.
33(b) (4) (a) A In addition to subparagraph (3), for
34the renewal of a license, a participation fee imposed under
35section 203D.3A chapter 203D, including section 203D.3B, and
-10-1any delinquent participation fee as provided in that section
2 chapter.
3(b) This subparagraph is repealed July 1, 2025.
4(c) (5) (a) A In addition to subparagraphs (3) and (4),
5for the renewal of a license, any per-bushel fee as provided in
6section 203D.3A chapter 203D, including section 203D.3B, and
7any delinquent per-bushel fee and penalty as provided in that
8section chapter.
9(b) This subparagraph is repealed July 1, 2025.
102. a. The department shall notify a licensed grain dealer
11of any delinquency in the payment of a participation fee or
12per-bushel fee as provided in section 203D.3A chapter 203D,
13including section 203D.3B. The department shall suspend the
14grain dealer’s license thirty days after delivering the notice
15unless the licensed grain dealer pays the delinquent fee.
16b. This subsection is repealed July 1, 2025.
173. a. The department may suspend or revoke the license
18of a grain dealer who discounts the purchase price paid for
19grain nominally for the participation fee or per-bushel fee as
20provided in section 203D.3A chapter 203D, including section
21203D.3B, while that fee is not in effect.
22b. This subsection is repealed July 1, 2025.
234. a. A grain dealer license which that has expired may
24be reinstated by the department upon receipt the department’s
25approval of a proper renewal application, and receipt of the
26renewal fee and a reinstatement fee as provided in section
27203.6, and any delinquent participation fee or per-bushel fee
28and penalty as provided in section 203D.3A.
29b. (1) In addition to paragraph “a”, a grain dealer license
30that has expired may be reinstated by the department upon
31receipt of any delinquent participation fee or per-bushel fee
32and penalty as provided in chapter 203D, including section
33203D.3B.
34(2) This paragraph is repealed July 1, 2025.
35c. The applicant must file the renewal application and
-11-1pay the fees and penalty described in this subsection to the
2department within thirty days from the date of expiration of
3the grain dealer license.
4 Sec. 24. Section 203C.1, Code 2023, is amended by adding the
5following new subsection:
6 NEW SUBSECTION. 9A. “Fund” means the grain depositors and
7sellers indemnity fund created in section 203D.3.
8 Sec. 25. Section 203C.12, Code 2023, is amended to read as
9follows:
10203C.12 Participation in fund required.
11A person licensed to operate a warehouse under this chapter
12shall participate in and comply with the grain depositors and
13sellers indemnity fund as provided in chapter 203D.
14 Sec. 26. Section 203C.37, subsections 1, 2, and 3, Code
152023, are amended to read as follows:
161. a. Upon the filing of an application pursuant to section
17203C.7 and compliance with the terms and conditions of this
18chapter including rules of the department, the department
19shall issue the applicant a warehouse operator’s license.
20The license expires at the end of the third calendar month
21following the close of the warehouse operator’s fiscal year.
22A warehouse operator’s license may be renewed annually by
23the filing of a renewal application on a form prescribed by
24the department pursuant to section 203C.7. An A renewal
25 application for renewal must be received by the department on
26or before the end of the third calendar month following the
27close of the warehouse operator’s fiscal year.
28b. The department shall not approve an application for the
29issuance or renewal of a warehouse operator’s license unless
30the applicant pays to the department all of the following fees:
31(1) For the issuance of a license, all of the following: a
32license fee as provided in section 203C.33.
33(a) A license fee imposed under section 203C.33.
34(b) A participation fee imposed under section 203D.3A,
35and any delinquent participation fee imposed under a previous
-12-1license as provided in that section.
2(2) (a) In addition to subparagraph (1), for the issuance
3of a license, a participation fee imposed under chapter 203D,
4including section 203D.3B, and any delinquent participation fee
5imposed under a previous license as provided in that chapter.
6(b) This subparagraph is repealed July 1, 2025.
7(2) (3) For the renewal of a license, all of the following:
8 a renewal fee as provided in section 203C.33.
9(a) A renewal fee imposed under section 203C.33.
10(b) A participation fee imposed under section 203D.3A, and
11any delinquent participation fee as provided in that section.
12(4) (a) In addition to subparagraph (3), a participation
13fee imposed under chapter 203D, including section 203D.3B, and
14any delinquent participation fee as provided in that chapter.
15(b) This subparagraph is repealed July 1, 2025.
162. a. The failure of a warehouse operator to file a renewal
17 an application to renew a warehouse operator’s license and to
18pay a renewal fee as provided for in section 203C.33 and any
19delinquent participation fee as provided in section 203D.3A,
20 on or before the end of the third calendar month following the
21close of the licensee’s fiscal year shall cause a license to
22expire.
23b. (1) In addition to paragraph “a”, the failure of a
24warehouse operator to file an application to renew a warehouse
25operator’s license and to pay a participation fee and any
26delinquent participation fee as provided in chapter 203D,
27including section 203D.3B, on or before the end of the third
28calendar month following the close of the licensee’s fiscal
29year shall cause a license to expire.
30(2) This paragraph is repealed July 1, 2025.
313. a. A warehouse license that has expired may be
32reinstated by the department upon receipt of a proper renewal
33 application, to renew the warehouse operator’s license and
34 the renewal fee and the reinstatement fee as provided for
35in section 203C.33, and any delinquent participation fee as
-13-1provided in section 203D.3A. The applicant must file the
2renewal application and pay the fees to the department within
3thirty days from the date that the warehouse license expires.
4b. (1) In addition to paragraph “a”, a warehouse license
5that has expired may be reinstated by the department upon
6receipt of any delinquent participation fee as provided in
7chapter 203D, including section 203D.3B. The applicant must
8pay the fee to the department within thirty days from the date
9that the warehouse license expires.
10(2) This paragraph is repealed July 1, 2025.
11 Sec. 27. Section 203D.2, Code 2023, is amended to read as
12follows:
13203D.2 Persons participating in fund — compliance.
141. All licensed grain dealers, including persons applying
15to be issued grain dealer licenses, as provided in chapter 203
16 and licensed warehouse operators, including persons applying to
17be issued warehouse operator licenses as provided in chapter
18203C, shall participate in the fund.
192. a. Participation in the fund by a licensed grain dealer
20includes complying with this chapter and chapter 203.
21b. Participation in the fund by a licensed warehouse
22operator includes complying with this chapter and chapter 203C.
233. This section does not require participation in the fund
24to include payment of a fee for deposit into the fund.
25 Sec. 28. NEW SECTION. 203D.2A Persons participating in fund
26— payment into fund.
271. Participation in the fund by licensed grain dealers,
28including persons applying to be issued grain dealer
29licenses under chapter 203, includes payment into the fund of
30participation fees, per-bushel fees, and delinquency penalties
31as provided in this chapter, including section 203D.3B.
322. Participation in the fund by licensed warehouse
33operators, including persons applying to be issued warehouse
34operator licenses under chapter 203D, includes payment into
35the fund of participation fees as provided in this chapter,
-14-1including section 203D.3B.
23. This section is repealed July 1, 2025.
3 Sec. 29. Section 203D.3, subsection 2, Code 2023, is amended
4to read as follows:
52. The fund consists of all of the following:
6a. (1) Participation fees paid to the department by
7licensed grain dealers and persons applying to be issued a
8 grain dealer’s license dealer licenses as provided in this
9chapter, including section 203D.3A 203D.3B.
10(2) This paragraph is repealed July 1, 2025.
11b. (1) Participation fees paid to the department by
12licensed warehouse operators and persons applying to be issued
13a warehouse operator’s license operator licenses as provided in
14this chapter, including section 203D.3A 203D.3B.
15(2) This paragraph is repealed July 1, 2025.
16c. (1) Per-bushel fees paid to the department by licensed
17grain dealers as provided in this chapter, including section
18203D.3A 203D.3B.
19(2) This paragraph is repealed July 1, 2025.
20d. (1) Delinquency penalties as provided in this chapter,
21including section 203D.3B.
22(2) This paragraph is repealed July 1, 2025.
23e. The amount of the state assessment on soybeans collected
24pursuant to chapter 185 and transferred to the fund pursuant to
25section 185.26 and this chapter, including section 203D.3B.
26f. The amount of the state assessment on corn collected
27pursuant to chapter 185C and transferred to the fund pursuant
28to section 185C.26 and this chapter, including section 203D.3B.
29e. g. Amounts collected by the state pursuant to legal
30action on behalf of the fund.
31f. h. Interest, earnings on investments, property, or
32securities acquired through the use of moneys in the fund.
33 Sec. 30. Section 203D.3A, Code 2023, is amended by adding
34the following new subsection:
35 NEW SUBSECTION. 3. This section is repealed July 1, 2025.
-15-1 Sec. 31. NEW SECTION. 203D.3B Grain depositors and sellers
2indemnity fund — administration of fees.
31. The board shall annually review the debits of and credits
4to the grain depositors and sellers indemnity fund.
52. a. Not later than May 1 of each year, the board shall
6determine whether to do all of the following:
7(1) Impose, reinstate, adjust, or waive the participation
8fee as provided in this chapter, including sections 203D.3A and
9203D.5.
10(2) Impose, reinstate, adjust, or waive the per-bushel fee
11as provided in this chapter, including sections 203D.3A and
12203D.5.
13b. Based on the board’s determination, the board shall
14impose or reinstate the participation fee and per bushel fee,
15adjust those fees that were effective on the previous July 1,
16or waive those fees that were in effect on the previous July 1,
17in accordance with chapter 17A. The imposition, reinstatement,
18adjustment, or waiver of the fees shall become effective as
19follows:
20(1) For the participation fee, on the following July 1.
21However, the grain dealer or warehouse operator shall continue
22to pay the participation fee at the rate in effect on the prior
23July 1 until the grain dealer or warehouse operator has paid
24the amount owing.
25(2) For a per-bushel fee, on the following July 1.
26c. This subsection is repealed July 1, 2025.
273. a. Notwithstanding subsection 2, if on the last date of
28the grain depositors and sellers indemnity fund’s fiscal year
29as provided in section 203D.3, moneys in the fund exceed twenty
30million dollars, less any encumbered balances or pending or
31unsettled claims, all of the following apply:
32(1) The participation fee shall be waived and shall not be
33assessable or owing for the following fiscal year of the fund.
34However, the grain dealer or warehouse operator shall continue
35to pay any owed participation fee that was in effect prior to
-16-1July 1.
2(2) The per-bushel fee shall be waived and shall not be
3assessable or owing.
4b. Notwithstanding subsection 2, the participation fee and
5per-bushel fee shall be reinstated at any time if the moneys
6in the fund, less any unencumbered balances or pending or
7unsettled claims, equal ten million dollars or less.
8c. This subsection is repealed July 1, 2025.
94. a. Not later than May 1 of each year, the board shall
10determine whether to do all of the following:
11(1) Suspend or reinstate the state assessment on soybeans
12as provided in section 185.26.
13(2) Suspend or reinstate the state assessment on corn as
14provided in section 185C.26.
15b. The fees described in this subsection shall be suspended
16or reinstated effective the following July 1.
175. a. Notwithstanding subsection 4, if on the last date of
18the grain depositors and sellers indemnity fund’s fiscal year
19as provided in section 203D.3, moneys in the fund exceed twenty
20million dollars, less any encumbered balances or pending or
21unsettled claims, all of the following apply:
22(1) The amount of the state assessment imposed on soybeans
23shall be suspended as provided in section 185.26.
24(2) The amount of the state assessment imposed on corn shall
25be suspended as provided in section 185C.26.
26b. Notwithstanding subsection 4, if at any time moneys in
27the fund do not exceed ten million dollars, less any encumbered
28balances or pending or unsettled claims, all of the following
29apply:
30(1) The amount of the state assessment on soybeans shall be
31reinstated as provided in section 185.26.
32(2) The amount of the state assessment on corn shall be
33reinstated as provided in section 185C.26.
346. a. If the amounts of the state assessments imposed on
35soybeans and corn are suspended as provided in this section,
-17-1the department of agriculture and land stewardship shall
2deliver a state assessment transfer suspension notice to the
3department of administrative services as provided in sections
4185.26 and 185C.26.
5b. If the amounts of the state assessments imposed on
6soybeans and corn are reinstated as provided in this section,
7the department of agriculture and land stewardship shall
8deliver a state assessment transfer reinstatement notice to the
9department of administrative services as provided in sections
10185.26 and 185C.26.
11 Sec. 32. Section 203D.4, subsections 2 and 3, Code 2023, are
12amended to read as follows:
132. a. The duties of the board include the review and
14determination of claims, and the review and approval of
15administrative costs of the fund. To carry out these
16duties, the board has the power to adopt rules regarding its
17organization and procedures for determining claims. Further,
18the
19b. (1) Theboard shall approve rules proposed by the
20department for the administration of the participation fees and
21 per-bushel fee prior to their adoption by the department.
22(2) This paragraph is repealed July 1, 2025.
23c. The board may provide comment and advice to the
24department in regard to the department’s administration of
25chapters 203 and 203C where the department’s policies and rules
26may affect the exposure of the fund to liability. However, the
27board shall not become actively involved in a determination by
28the department as to whether disciplinary action is to be taken
29against a particular licensee. The board is not a forum for
30review or appeal in regard to any particular action taken by
31the department against a licensee.
323. a. The department through the grain warehouse bureau
33 shall perform the administrative functions necessary for the
34operation of the board and the fund. Administrative costs
35approved by the board shall be paid from the fund. The rules of
-18-1the department shall contain the rules of the board adopted for
2its organization and its procedures.
3b. (1) The department shall adopt rules for the
4administration of the participation fee and per-bushel fee upon
5the board’s approval of the rules proposed by the department.
6(2) This paragraph is repealed July 1, 2025.
7c. The secretary of agriculture, as president of the board
8as well as head of the department of agriculture and land
9stewardship, shall administer the department so as to minimize
10the risk of loss to the fund while protecting interests of
11depositors and sellers of grain. Policies and rules for the
12administration of chapters 203 and 203C which, as determined
13by the secretary of agriculture, may affect the exposure of
14the fund, shall be presented to the board for comment prior to
15their adoption by the department.
16d. The department shall make reports to the board in regard
17to licensee investigations which may result in disciplinary
18action against a licensee and exposure of the fund. The
19reports may be discussed by the board in closed session
20pursuant to section 21.5, and are confidential. In making
21the report, the department shall make available to the board
22records of licensees which are otherwise confidential under
23section 22.7, 203.16, or 203C.24. However, a determination
24to take disciplinary action against a particular licensee
25shall be made exclusively by the department. A report to the
26board is not a prerequisite to disciplinary action against a
27licensee. Review of any action against a licensee, whether or
28not relating to the fund, shall be made exclusively through the
29department.
30 Sec. 33. Section 203D.5, Code 2023, is amended to read as
31follows:
32203D.5 Fees — imposition, adjustment, or waiver Rates for
33participation and per-bushel fees.
341. The board shall annually review the debits of and credits
35to the grain depositors and sellers indemnity fund created
-19-1in section 203D.3 and shall determine whether to impose the
2participation fee and per-bushel fee as provided in section
3203D.3A, make adjustments to the fees effective on the previous
4July 1, or waive the fees as necessary to comply with this
5section. The board shall make the determination not later than
6May 1 of each year. The board shall impose the fees or adjust
7the fees effective on the previous July 1 in accordance with
8chapter 17A. The imposition or adjustment of the fees shall
9become effective as follows:
10a. For the participation fee, on the following July 1.
11However, the licensee shall continue to pay the participation
12fee at the rate in effect on the prior July 1, until the
13licensee has paid the amount owing.
14b. For a per-bushel fee, on the following July 1.
152. 1. a. Except as provided in paragraph “b”, the The
16board shall determine the rate of a the participation fee owed
17by a licensee grain dealer participating in the fund. The rate
18of the participation fee shall be calculated as follows not
19exceed the greater of the following:
20(1) (a) For a licensed grain dealer For the fund’s fiscal
21year beginning July 1, 2023, not more than fourteen thousandths
22of a one cent per bushel assessed on all the grain dealer’s
23 purchased grain.
24(b) For the fund’s fiscal year beginning July 1, 2023, a
25minimum of fifty dollars.
26(2) (a) For the fund’s fiscal year beginning July 1, 2024,
27not more than seven thousandths of one cent per bushel assessed
28on all the grain dealer’s purchased grain.
29(b) For the fund’s fiscal year beginning July 1, 2024, a
30minimum of twenty-five dollars.
31b. The board shall calculate the grain dealer’s purchased
32grainduring the grain dealer’s last fiscal year at each
33location at which records are maintained for transactions
34of the grain dealer, as determined according to information
35submitted by the grain dealer to the department for the
-20-1issuance or renewal of a license as provided in section 203.5.
2(2) 2. a. The board shall determine the rate of the
3participation fee owed by the warehouse operator participating
4in the fund. The rate of the participation fee shall not
5exceed the greater of the following:
6(1) (a) For a licensed warehouse operator For the fund’s
7fiscal year beginning July 1, 2023, not more than fourteen
8thousandths of a one cent per bushel of bulk grain storage
9capacity or five hundred dollars, whichever is less.
10(b) For the fund’s fiscal year beginning July 1, 2023, a
11minimum of fifty dollars.
12(2) (a) For the fund’s fiscal year beginning July 1, 2024,
13not more than seven thousandths of one cent per bushel of bulk
14grain storage capacity or two hundred fifty dollars, whichever
15is less.
16(b) For the fund’s fiscal year beginning July 1, 2024, a
17minimum of twenty-five dollars.
18b. The board shall calculate the warehouse operator’s bulk
19grain storage capacityfor each warehouse licensed pursuant
20to section 203C.8 or five hundred dollars, whichever is less.
21The participation fee shall be determined using information
22provided to the department by the warehouse operator applying
23for the issuance or renewal of a license as provided in
24sections 203C.7 and 203C.37.
25b. A licensee shall pay a participation fee of at least
26fifty dollars.
273. a. The board shall determine the rate of the per-bushel
28fee owed by a grain dealer. The rate shall not exceed
29one-quarter the following:
30(1) For the fund’s fiscal year beginning July 1, 2023, not
31more than one-quartercent per bushel assessed on all the grain
32dealer’s purchased grain.
33(2) For the fund’s fiscal year beginning July 1, 2024, not
34more than one-eighth cent per bushel assessed on all the grain
35dealer’s purchased grain.
-21- 1b. The board shall calculate the grain dealer’s purchased
2grain in the same manner as the grain dealer’s participation
3fee as provided in subsection 1.
44. If on the last date of the fund’s fiscal year as provided
5in section 203D.3 the assets of the fund exceed eight million
6dollars, less any encumbered balances or pending or unsettled
7claims, all of the following apply: This section is repealed
8July 1, 2025.
9a. The participation fee shall be waived and shall not
10be assessable or owing for the following fiscal year of the
11fund. However, the licensee shall continue to pay any owing
12participation fee that was in effect on the prior July 1.
13b. The per-bushel fee shall be waived and shall not be
14assessable or owing.
155. The board shall reinstate the fees as provided in this
16section if the assets of the fund, less any unencumbered
17balances or pending or unsettled claims, are three million
18dollars or less.
19 Sec. 34. Section 203D.6, subsection 8, Code 2023, is amended
20to read as follows:
218. Payment of claims.
22a. Upon a determination that the claim is eligible for
23payment, the board shall provide for payment of ninety percent
24of the loss, as determined under subsection 5, but not more
25than three six hundred thousand dollars per claimant.
26b. If at any time the board determines that there are
27insufficient funds moneys in the fund to make payment of
28all claims, the board may order that payment be deferred
29on specified claims. The department, upon the board’s
30instruction, shall hold those claims for payment until the
31board determines that the fund again contains there are
32 sufficient assets moneys in the fund to pay deferred claims.
33EXPLANATION
34The inclusion of this explanation does not constitute agreement with
35the explanation’s substance by the members of the general assembly.
-22- 1BACKGROUND — GRAIN DEPOSITORS AND SELLERS INDEMNITY FUND.
2 This bill amends provisions regulating grain dealers purchasing
3grain (Code chapter 203), and grain warehouse operators storing
4grain under bailment (Code chapter 203C). A grain dealer
5or warehouse operator must do business in this state under
6a license issued by the department of agriculture and land
7stewardship (DALS). The licensed grain dealer and licensed
8warehouse operator (licensees) pay license fees for deposit
9in the general fund (Code sections 203.6 and 203C.33). A
10person selling grain to a licensed grain dealer (seller) or
11depositing grain with a licensed warehouse operator (depositor)
12may be reimbursed for a loss incurred by the failure of the
13licensed grain dealer or licensed warehouse operator to honor a
14contractual obligation regarding the transaction (Code section
15203D.6). Upon a determination that the claim is eligible
16for payment, the indemnity board provides for payment of 90
17percent of the loss, but not more than $300,000. The indemnity
18board may defer a claim if there are insufficient assets in
19the fund to fully cover a loss. The indemnity fund is paid
20from several sources, including a participation fee paid by
21those grain dealers and warehouse operators (persons applying
22for or renewing a license) and a per-bushel fee paid only by
23grain dealers (Code sections 203D.3A and 203D.5). For grain
24dealers, the amount of the participation fee is based on
25purchased grain during the grain dealer’s last fiscal year, and
26for warehouse operators, the amount of the participation fee
27is based on warehouse storage capacity. The maximum amount of
28the participation fee is .014 of 1 cent per bushel of either
29purchased or stored grain with a minimum required amount of
30$50. The per-bushel fee is also based on purchased grain with
31a maximum of $0.25 per bushel. The moneys available in the
32indemnity fund are calculated by subtracting from the balance
33any unencumbered obligations or pending claims (Code section
34203D.6). The fund is managed on a state fiscal year basis
35(July 1 to June 30). By May 1 of each year, the indemnity board
-23-1may impose, reinstate, adjust, or waive the fees. However, if
2on the last date of the fund’s fiscal year, the moneys in the
3indemnity fund exceed a ceiling of $8 million, the two fees are
4waived. If at any time moneys in the indemnity fund are at a
5floor of $3 million or less, the indemnity fees are reinstated
6(Code section 203D.5).
7BACKGROUND — CORN AND SOYBEAN CHECKOFFS. An excise tax
8or assessment is imposed on the first purchaser of a number
9of commodities as a pass-through (commonly referred to as a
10“checkoff”). The purpose of the assessment is to finance
11activities which involve improving market development which
12includes aspects related to the commodity’s production and
13market share, such as research and education. Depending upon
14the commodity, the assessment is implemented and administered
15under either a state or federal statute or both. An assessment
16takes effect, is continued, or is terminated on the basis of
17a majority vote of producers voting in a referendum conducted
18by the United States department of agriculture in the case
19of a federal assessment or DALS in the case of a state
20assessment. The checkoff moneys imposed due to the state or
21federal assessment are collected and expended pursuant to a
22promotional order under the direction of a governing body
23of elected producers (referred to as a board, committee, or
24council). For soybeans, the federal government has implemented
25and administers a federal assessment under the direction of the
26united soybean board (7 U.S.C. ch.92) and Iowa has implemented
27and administers a state assessment under the direction of the
28Iowa soybean association board of directors (Code sections
29185.3, 185.11, and 185.13). With the collection of the federal
30assessment, the maximum amount of the state assessment for
31soybeans is .25 of 1 percent of the net market price (Code
32section 185.21) without a right of refund. For corn, the
33state has implemented and administers a state assessment (Code
34chapter 185C) under the direction of the Iowa corn promotion
35board (Code sections 185C.8, 185C.11, and 185C.13). The
-24-1maximum amount of the state assessment for corn is 3 cents per
2bushel (Code section 185C.21) subject to a right of refund
3(Code section 185C.27). For each commodity subject to a state
4assessment, including soybeans and corn, the collected checkoff
5moneys are deposited into a separate state-controlled fund
6established in the state treasury (state fund) and transferred
7by the department of administrative services (DAS) to an
8account in a qualified financial institution eligible to
9hold public funds (Code chapter 12C) and established by the
10governing body of the commodity organization; in this case
11the Iowa soybean association board of directors or Iowa corn
12promotion board.
13BILL’S PROVISIONS. The bill phases out the indemnity fees
14paid to DALS by licensed grain dealers and warehouse operators
15used to support the indemnity fund (Code sections 203D.3A
16and 203D.5). For the fiscal year of the fund beginning July
171, 2023, the amount of the indemnity fees remains the same;
18for the subsequent fiscal year of the fund, the two fees are
19reduced to 50 percent of the prior fiscal year’s amounts;
20and for subsequent fiscal years, the two fees are eliminated
21together with the repeal of statutory language authorizing
22them (Code sections 203D.3A and 203D.5). The bill replaces
23that funding source with checkoff moneys collected from state
24assessments imposed on soybeans and corn. The bill provides
25that market development for both soybeans and corn expressly
26includes the production, storage, and marketing of those
27commodities in commercial channels (amended Code sections
28185.1 and 185C.1). The names of the state-controlled funds
29are changed, from the soybean promotion fund to the soybean
30marketing fund and from the corn promotion fund to the corn
31marketing fund (amended Code sections 185.26 and 185C.26). The
32account under the control of the Iowa corn promotion board is
33named “the corn checkoff account”. Under the bill, 25 percent
34of moneys in each fund is transferred to the indemnity fund and
35appropriated for use by DALS and the indemnity board to support
-25-1claims for losses by depositors and sellers (for soybeans,
2amended Code sections 185.26 and 185.28, and for corn, amended
3Code sections 185C.26 and 185C.28). Moneys deposited into the
4soybean marketing fund or corn marketing fund and transferred
5to the soybean checkoff account, the corn checkoff account,
6or the indemnity fund are public funds (amended Code sections
7185.34 and 185C.34). The bill increases the limits of the fund
8to a ceiling of $20 million, and a floor of $10 million. On May
91, the indemnity board must determine to suspend or reinstate
10the state assessments. However, if on the last date of the
11indemnity fund’s fiscal year, assets in the fund reach the
12$20 million ceiling, the state assessments are suspended and
13if at any time those moneys reach the $10 million floor, the
14state assessments are reinstated (new Code section 203D.3B).
15In either case, DALS must notify DAS of the suspension or
16reinstatement. Finally, the indemnity fund’s payout limit for
17a claim is increased to $600,000 (Code section 203D.6).
-26-da/ns
2commodity programs, by reducing and eliminating fees imposed
3on licensed grain dealers and warehouse operators, replacing
4those moneys with moneys collected from a percentage of
5state assessments imposed on the sale of corn and soybeans,
6increasing moneys deposited into the grain depositors and
7sellers indemnity fund, increasing indemnification amounts,
8and making appropriations.
9BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 Section 1. Section 185.1, subsection 7, Code 2023, is
2amended to read as follows:
37. “Market development” means to engage improve the economic
4conditions of soybean production, storage, and marketing, by
5engaging in research and educational programs directed toward
6better and more efficient production, storage, and utilization
7of soybeans; to provide providing methods and means, including
8but not limited to, public relations and other promotion
9techniques for the maintenance of present markets; to provide
10 ensuring the security of soybeans stored and marketed in
11commercial channels; providing for the development of new or
12larger domestic and foreign markets; and to provide providing
13 for the prevention, modification, or elimination of trade
14barriers which obstruct the free flow of soybeans.
15 Sec. 2. Section 185.13, Code 2023, is amended by adding the
16following new subsection:
17 NEW SUBSECTION. 7. Accept gifts or federal or state grants
18received by the board. Any moneys accepted by the board
19shall be deposited in an account of a qualified financial
20institution.
21 Sec. 3. Section 185.21, subsection 2, Code 2023, is amended
22to read as follows:
232. The state assessment shall be paid deposited into the
24soybean promotion marketing fund established in section 185.26.
25 Sec. 4. Section 185.26, Code 2023, is amended to read as
26follows:
27185.26 Administration Deposit of moneys collected from state
28assessment — soybean marketing fund — transfers.
291. The Moneys from the state assessment collected by
30the board from the sale of soybeans shall be deposited in a
31special fund known as the soybean promotion marketing fund,
32established in the office of the treasurer of state. The fund
33may also contain any gifts or federal or state grant received
34by the board. Moneys collected, deposited into in the soybean
35marketing fund, and transferred to the board, as provided in
-1-1this chapter, shall be subject to audit by the auditor of
2state. The
32. a. Except as provided in paragraph “b”, thedepartment
4of administrative services shall transfer moneys from the
5soybean marketing fund to the board for deposit into in an
6account known as the soybean checkoff account which shall be
7established by the board in a qualified financial institution.
8The department of administrative services shall transfer the
9moneys into to the soybean checkoff account as provided in a
10resolution adopted by the board. However, the department is
11only required to transfer moneys once during each day and only
12during hours when the offices of the state are open. From
13moneys collected, deposited, and transferred to the soybean
14checkoff account as provided in this section, the board shall
15first pay the costs of referendums, elections, and other
16expenses incurred in the administration of this chapter,
17before the transferred moneys may be expended to carry out the
18purposes of the board as provided in section 185.11. The board
19shall strictly segregate moneys in the soybean checkoff account
20from all other moneys of the board. Moneys in the soybean
21checkoff account shall be expended by the board exclusively
22for use as provided in section 185.28, including for carrying
23out the purposes of the board as provided in section 185.11.
24The soybean checkoff account shall be subject to audit by the
25auditor of state.
26b. (1) Except as otherwise provided in subparagraph
27(2), twenty-five percent of moneys deposited in the soybean
28marketing fund shall be transferred to the grain depositors
29and sellers indemnity fund created in section 203D.3 for use
30as provided in section 185.28.
31(2) If the department of agriculture and land stewardship
32delivers a state assessment transfer suspension notice to the
33department of administrative services as provided in section
34203D.3B, moneys that would otherwise be transferred to the
35grain depositors and sellers indemnity fund as described in
-2-1subparagraph (1) shall instead be transferred to the soybean
2checkoff account for use by the board in the same manner
3provided in paragraph “a”.
4(3) If the department of agriculture and land stewardship
5delivers a state assessment transfer reinstatement notice
6to the department of administrative services as provided in
7section 203D.3B, moneys that would otherwise be transferred to
8the soybean checkoff account under subparagraph (2) shall again
9be transferred to the grain depositors and sellers indemnity
10fund in the same manner described in subparagraph (1).
11c. The department of administrative services is only
12required to transfer moneys under this subsection to the
13soybean checkoff account and the grain depositors and sellers
14indemnity fund once during each day and only during hours when
15the offices of the state are open.
162. 3. The fiscal year of the association shall commence on
17October 1 and end on September 30.
18 Sec. 5. Section 185.28, Code 2023, is amended to read as
19follows:
20185.28 Use of moneys — appropriation appropriations.
211. All Except as provided in subsection 2, moneys collected,
22deposited, and transferred to or accepted by the board as
23provided in this chapter, are appropriated and shall be used
24for the administration of this chapter by the board and for the
25payment of claims by the board based upon obligations incurred
26in the performance of board activities and functions provided
27in this chapter.
282. Moneys transferred from the soybean marketing fund to
29the grain depositors and sellers indemnity fund as provided in
30section 185.26 are appropriated for use by the department of
31agriculture and land stewardship and the Iowa grain indemnity
32fund board as provided in chapter 203D.
33 Sec. 6. Section 185.30, Code 2023, is amended to read as
34follows:
35185.30 Bond.
-3- 1Every A person occupying a position of trust with the
2board and acting under any provisions a provision of this
3chapter shall provide post a bond in an amount required by the
4board. The premium for the bond shall be paid out of moneys
5transferred from in the soybean promotion fund to the board
6pursuant to checkoff account established in section 185.26.
7 Sec. 7. Section 185.33, Code 2023, is amended to read as
8follows:
9185.33 Report.
10The board shall each year prepare and submit a report
11summarizing the activities of the board under this chapter to
12the auditor of state and the secretary of agriculture. The
13report shall show all income, expenses, and other relevant
14information concerning fees moneys collected by the board,
15deposited by the board in an account, transferred to the board,
16 and expended by the board under the provisions of this chapter.
17 Sec. 8. Section 185.34, subsection 2, paragraph b,
18subparagraph (2), Code 2023, is amended to read as follows:
19(2) A public body for purposes of chapter 12C. Moneys
20deposited into the soybean checkoff account as established in
21section 185.26 shall be deemed to be public funds under chapter
2212C.
23 Sec. 9. Section 185.34, Code 2023, is amended by adding the
24following new subsection:
25 NEW SUBSECTION. 3. Moneys deposited in the soybean
26marketing fund and transferred to the soybean checkoff account
27as established in section 185.26 or the grain depositors and
28sellers indemnity fund as provided in that section shall be
29deemed to be public funds under chapter 12C.
30 Sec. 10. Section 185.35, subsection 2, Code 2023, is amended
31to read as follows:
322. Subsection 1 does not apply to a any of the following:
33a. Acommunication or action taken by the board if any of
34the following applies:
35a. (1) The board may communicate or take action directed
-4-1to an appropriate government official or government relating
2to the marketing of soybeans or soybean products to a foreign
3country.
4b. (2) The communication or action relates to the
5prevention, modification, or elimination of trade barriers.
6b. Moneys transferred to the grain depositors and sellers
7indemnity fund as provided in section 185.26.
8 Sec. 11. Section 185C.1, subsection 9, Code 2023, is amended
9to read as follows:
109. “Market development” means to engage improve the economic
11conditions of corn production, storage, and marketing, by
12engaging in research and educational programs directed toward
13better and more efficient production, storage, and utilization
14of corn; to provide providing methods and means, including but
15not limited to, public relations and other promotion techniques
16for the maintenance of present markets; to provide ensuring
17the security of corn to be stored and marketed in commercial
18channels; providing for the development of new or larger
19domestic and foreign markets; and to provide providing for the
20prevention, modification, or elimination of trade barriers
21which obstruct the free flow of corn.
22 Sec. 12. Section 185C.11, subsection 1, Code 2023, is
23amended by adding the following new paragraphs:
24 NEW PARAGRAPH. j. Administer the corn checkoff account as
25provided in section 185C.26.
26 NEW PARAGRAPH. k. Accept gifts, rents, royalties, interest,
27license fees, or federal or state grants. Any moneys accepted
28by the board shall be deposited in an account of a qualified
29financial institution.
30 Sec. 13. Section 185C.21, subsection 1, Code 2023, is
31amended to read as follows:
321. The board shall determine and set the state assessment
33rate. State assessments collected pursuant to the promotional
34order shall be paid into the corn promotion marketing fund
35established in section 185C.26. Except as provided in
-5-1subsection 2, a state assessment shall not exceed one-quarter
2of one cent per bushel upon corn marketed in this state.
3 Sec. 14. Section 185C.24, subsections 1 and 2, Code 2023,
4are amended to read as follows:
51. The board shall be suspended and board operations and
6terms of members shall cease upon either any of the following
7events:
8a. The state assessment is terminated pursuant to section
9185C.25.
10b. The state assessment is suspended pursuant to section
11185C.25A.
122. However, notwithstanding subsection 1, the board
13shall continue to operate until proceeds remaining in moneys
14transferred from the corn promotion marketing fund to the corn
15checkoff account are disbursed. Disbursement shall be made
16as provided for payment the transfer of moneys under section
17185C.26.
18 Sec. 15. Section 185C.26, Code 2023, is amended to read as
19follows:
20185C.26 Deposit of moneys — corn promotion marketing fund
21— transfers.
221. A Moneys from the state assessment collected by the Iowa
23corn promotion board from a the sale of corn shall be deposited
24in the office of the treasurer of state in a special fund known
25as the corn promotion marketing fund established in the office
26of the treasurer of state. The fund may include any gifts,
27rents, royalties, interest, license fees, or a federal or state
28grant received by the board. Moneys collected, deposited
29in the corn marketing fund, and transferred to the board as
30provided in this chapter shall be subject to audit by the
31auditor of state. The auditor of state may seek reimbursement
32for the cost of the audit from moneys deposited in the corn
33marketing fund as provided in this chapter. The department of
34administrative services shall transfer moneys from the fund
352. a. Except as provided in paragraph “b”, the department
-6-1of administrative services shall transfer moneys deposited
2in the corn marketing fundto the board for deposit into in
3 an account known as the corn checkoff account which shall be
4 established by the board in a qualified financial institution.
5The department of administrative services shall transfer the
6moneys to the corn checkoff account as provided in a resolution
7adopted by the board. However, the department is only required
8to transfer moneys once during each day and only during hours
9when the offices of the state are open. From moneys collected,
10 transferred to the corn checkoff account, the board shall first
11pay all the direct and indirect costs incurred by the secretary
12and the costs of referendums, elections, and other expenses
13incurred in the administration of this chapter, before the
14transferred moneys may be expended to carry for other uses as
15provided in section 185C.28, including for carrying out the
16purposes of this chapter as provided in section 185C.11.
17b. (1) Except as otherwise provided in subparagraph (2),
18twenty-five percent of moneys deposited in the corn marketing
19fund shall be transferred to the grain depositors and sellers
20indemnity fund created in section 203D.3 for use as provided
21in section 185C.28.
22(2) If the department of agriculture and land stewardship
23delivers a state assessment transfer suspension notice to the
24department of administrative services as provided in section
25203D.3B, moneys that would otherwise be transferred to the
26grain depositors and sellers indemnity fund as described in
27subparagraph (1) shall instead be transferred to the corn
28checkoff account for use by the board in the same manner
29provided in paragraph “a”.
30(3) If the department of agriculture and land stewardship
31delivers a state assessment transfer reinstatement notice
32to the department of administrative services as provided in
33section 203D.3B, moneys that would otherwise be transferred to
34the corn checkoff account under subparagraph (2) shall again be
35transferred to the grain depositors and sellers indemnity fund
-7-1in the same manner described in subparagraph (1).
2c. The department of administrative services is only
3required to transfer moneys under this subsection to the corn
4checkoff account and the grain depositors and sellers indemnity
5fund once during each day and only during hours when the
6offices of the state are open.
7 Sec. 16. Section 185C.28, Code 2023, is amended to read as
8follows:
9185C.28 Use of moneys — appropriation appropriations.
101. Moneys deposited in the corn promotion fund and
11transferred to Except as provided in subsection 2, moneys
12transferred or accepted by the board, as provided in section
13185C.26, including federal moneys to the extent permitted
14by federal law, are appropriated and shall be used for
15the administration of this chapter and for the payment of
16claims based upon obligations incurred in the performance of
17activities and functions provided in this chapter.
182. Moneys transferred from the corn marketing fund to the
19grain depositors and sellers indemnity fund as provided in
20section 185C.26 are appropriated for use by the department of
21agriculture and land stewardship and the Iowa grain indemnity
22fund board as provided in chapter 203D.
23 Sec. 17. Section 185C.29, subsection 1, Code 2023, is
24amended to read as follows:
251. After the direct and indirect costs incurred by the
26secretary and the costs of elections, referendums, necessary
27board expenses, and administrative costs have been paid, at
28least seventy-five percent of the remaining moneys from a state
29assessment deposited in the corn promotion marketing fund shall
30be used to carry out the purposes of the board as provided in
31section 185C.11.
32 Sec. 18. Section 185C.30, Code 2023, is amended to read as
33follows:
34185C.30 Bond.
35Every person occupying a position of trust with the board
-8-1and acting under any provisions a provision of this chapter
2shall give post a bond in such amount as may be required by the
3board, the. The premium for which the bond shall be paid out of
4moneys in the corn promotion fund checkoff account established
5in section 185C.26.
6 Sec. 19. Section 185C.33, Code 2023, 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 moneys collected by the board,
14deposited by the board into an account, transferred to the
15board, and expended by the board under the provisions of this
16chapter.
17 Sec. 20. Section 185C.34, Code 2023, is amended to read as
18follows:
19185C.34 Not a state agency — public funds.
201. The Except as provided in subsection 2, the Iowa corn
21promotion board is not a state agency.
222. The board is deemed to be a public body for purposes of
23chapter 12C.
243. Moneys deposited in the corn marketing fund and
25transferred to the corn checkoff account as established in
26section 185C.26 or the grain depositors and sellers indemnity
27fund as provided in that section shall be deemed to be public
28funds under chapter 12C.
29 Sec. 21. Section 203.1, Code 2023, is amended by adding the
30following new subsection:
31 NEW SUBSECTION. 7A. “Fund” means the grain depositors and
32sellers indemnity fund created in section 203D.3.
33 Sec. 22. Section 203.4, Code 2023, is amended to read as
34follows:
35203.4 Participation in indemnity fund required.
-9- 1A grain dealer licensed or required to be licensed pursuant
2to section 203.3 shall participate in and comply with the grain
3depositors and sellers indemnity fund as provided in chapter
4203D.
5 Sec. 23. Section 203.5, subsections 1, 2, 3, and 4, Code
62023, are amended to read as follows:
71. a. Upon the filing of an application on a form
8prescribed by the department and compliance with the terms and
9conditions of this chapter including rules of the department,
10the department shall issue the applicant a grain dealer’s
11license. The license expires at the end of the third calendar
12month following the close of the grain dealer’s fiscal year.
13A grain dealer’s license may be renewed annually by filing a
14renewal application on a form prescribed by the department. An
15application for renewal must be received by the department on
16or before the end of the third calendar month following the
17close of the grain dealer’s fiscal year.
18b. The department shall not issue approve an application for
19the issuance or renewal of a grain dealer’s license unless the
20applicant pays to the department all of the following fees:
21(1) For the issuance of a license, all of the following: a
22license fee imposed under section 203.6.
23(a) A license fee imposed under section 203.6.
24(b) (2) (a) A In addition to subparagraph (1), for the
25issuance of a license, a participation fee imposed under
26section 203D.3A chapter 203D, including section 203D.3B, and
27any delinquent participation fee imposed under a previous
28license as provided in that section chapter.
29(b) This subparagraph is repealed July 1, 2025.
30(2) (3) For the renewal of a license, all of the following:
31 a renewal fee imposed under section 203.6.
32(a) A renewal fee imposed under section 203.6.
33(b) (4) (a) A In addition to subparagraph (3), for
34the renewal of a license, a participation fee imposed under
35section 203D.3A chapter 203D, including section 203D.3B, and
-10-1any delinquent participation fee as provided in that section
2 chapter.
3(b) This subparagraph is repealed July 1, 2025.
4(c) (5) (a) A In addition to subparagraphs (3) and (4),
5for the renewal of a license, any per-bushel fee as provided in
6section 203D.3A chapter 203D, including section 203D.3B, and
7any delinquent per-bushel fee and penalty as provided in that
8section chapter.
9(b) This subparagraph is repealed July 1, 2025.
102. a. The department shall notify a licensed grain dealer
11of any delinquency in the payment of a participation fee or
12per-bushel fee as provided in section 203D.3A chapter 203D,
13including section 203D.3B. The department shall suspend the
14grain dealer’s license thirty days after delivering the notice
15unless the licensed grain dealer pays the delinquent fee.
16b. This subsection is repealed July 1, 2025.
173. a. The department may suspend or revoke the license
18of a grain dealer who discounts the purchase price paid for
19grain nominally for the participation fee or per-bushel fee as
20provided in section 203D.3A chapter 203D, including section
21203D.3B, while that fee is not in effect.
22b. This subsection is repealed July 1, 2025.
234. a. A grain dealer license which that has expired may
24be reinstated by the department upon receipt the department’s
25approval of a proper renewal application, and receipt of the
26renewal fee and a reinstatement fee as provided in section
27203.6, and any delinquent participation fee or per-bushel fee
28and penalty as provided in section 203D.3A.
29b. (1) In addition to paragraph “a”, a grain dealer license
30that has expired may be reinstated by the department upon
31receipt of any delinquent participation fee or per-bushel fee
32and penalty as provided in chapter 203D, including section
33203D.3B.
34(2) This paragraph is repealed July 1, 2025.
35c. The applicant must file the renewal application and
-11-1pay the fees and penalty described in this subsection to the
2department within thirty days from the date of expiration of
3the grain dealer license.
4 Sec. 24. Section 203C.1, Code 2023, is amended by adding the
5following new subsection:
6 NEW SUBSECTION. 9A. “Fund” means the grain depositors and
7sellers indemnity fund created in section 203D.3.
8 Sec. 25. Section 203C.12, Code 2023, is amended to read as
9follows:
10203C.12 Participation in fund required.
11A person licensed to operate a warehouse under this chapter
12shall participate in and comply with the grain depositors and
13sellers indemnity fund as provided in chapter 203D.
14 Sec. 26. Section 203C.37, subsections 1, 2, and 3, Code
152023, are amended to read as follows:
161. a. Upon the filing of an application pursuant to section
17203C.7 and compliance with the terms and conditions of this
18chapter including rules of the department, the department
19shall issue the applicant a warehouse operator’s license.
20The license expires at the end of the third calendar month
21following the close of the warehouse operator’s fiscal year.
22A warehouse operator’s license may be renewed annually by
23the filing of a renewal application on a form prescribed by
24the department pursuant to section 203C.7. An A renewal
25 application for renewal must be received by the department on
26or before the end of the third calendar month following the
27close of the warehouse operator’s fiscal year.
28b. The department shall not approve an application for the
29issuance or renewal of a warehouse operator’s license unless
30the applicant pays to the department all of the following fees:
31(1) For the issuance of a license, all of the following: a
32license fee as provided in section 203C.33.
33(a) A license fee imposed under section 203C.33.
34(b) A participation fee imposed under section 203D.3A,
35and any delinquent participation fee imposed under a previous
-12-1license as provided in that section.
2(2) (a) In addition to subparagraph (1), for the issuance
3of a license, a participation fee imposed under chapter 203D,
4including section 203D.3B, and any delinquent participation fee
5imposed under a previous license as provided in that chapter.
6(b) This subparagraph is repealed July 1, 2025.
7(2) (3) For the renewal of a license, all of the following:
8 a renewal fee as provided in section 203C.33.
9(a) A renewal fee imposed under section 203C.33.
10(b) A participation fee imposed under section 203D.3A, and
11any delinquent participation fee as provided in that section.
12(4) (a) In addition to subparagraph (3), a participation
13fee imposed under chapter 203D, including section 203D.3B, and
14any delinquent participation fee as provided in that chapter.
15(b) This subparagraph is repealed July 1, 2025.
162. a. The failure of a warehouse operator to file a renewal
17 an application to renew a warehouse operator’s license and to
18pay a renewal fee as provided for in section 203C.33 and any
19delinquent participation fee as provided in section 203D.3A,
20 on or before the end of the third calendar month following the
21close of the licensee’s fiscal year shall cause a license to
22expire.
23b. (1) In addition to paragraph “a”, the failure of a
24warehouse operator to file an application to renew a warehouse
25operator’s license and to pay a participation fee and any
26delinquent participation fee as provided in chapter 203D,
27including section 203D.3B, on or before the end of the third
28calendar month following the close of the licensee’s fiscal
29year shall cause a license to expire.
30(2) This paragraph is repealed July 1, 2025.
313. a. A warehouse license that has expired may be
32reinstated by the department upon receipt of a proper renewal
33 application, to renew the warehouse operator’s license and
34 the renewal fee and the reinstatement fee as provided for
35in section 203C.33, and any delinquent participation fee as
-13-1provided in section 203D.3A. The applicant must file the
2renewal application and pay the fees to the department within
3thirty days from the date that the warehouse license expires.
4b. (1) In addition to paragraph “a”, a warehouse license
5that has expired may be reinstated by the department upon
6receipt of any delinquent participation fee as provided in
7chapter 203D, including section 203D.3B. The applicant must
8pay the fee to the department within thirty days from the date
9that the warehouse license expires.
10(2) This paragraph is repealed July 1, 2025.
11 Sec. 27. Section 203D.2, Code 2023, is amended to read as
12follows:
13203D.2 Persons participating in fund — compliance.
141. All licensed grain dealers, including persons applying
15to be issued grain dealer licenses, as provided in chapter 203
16 and licensed warehouse operators, including persons applying to
17be issued warehouse operator licenses as provided in chapter
18203C, shall participate in the fund.
192. a. Participation in the fund by a licensed grain dealer
20includes complying with this chapter and chapter 203.
21b. Participation in the fund by a licensed warehouse
22operator includes complying with this chapter and chapter 203C.
233. This section does not require participation in the fund
24to include payment of a fee for deposit into the fund.
25 Sec. 28. NEW SECTION. 203D.2A Persons participating in fund
26— payment into fund.
271. Participation in the fund by licensed grain dealers,
28including persons applying to be issued grain dealer
29licenses under chapter 203, includes payment into the fund of
30participation fees, per-bushel fees, and delinquency penalties
31as provided in this chapter, including section 203D.3B.
322. Participation in the fund by licensed warehouse
33operators, including persons applying to be issued warehouse
34operator licenses under chapter 203D, includes payment into
35the fund of participation fees as provided in this chapter,
-14-1including section 203D.3B.
23. This section is repealed July 1, 2025.
3 Sec. 29. Section 203D.3, subsection 2, Code 2023, is amended
4to read as follows:
52. The fund consists of all of the following:
6a. (1) Participation fees paid to the department by
7licensed grain dealers and persons applying to be issued a
8 grain dealer’s license dealer licenses as provided in this
9chapter, including section 203D.3A 203D.3B.
10(2) This paragraph is repealed July 1, 2025.
11b. (1) Participation fees paid to the department by
12licensed warehouse operators and persons applying to be issued
13a warehouse operator’s license operator licenses as provided in
14this chapter, including section 203D.3A 203D.3B.
15(2) This paragraph is repealed July 1, 2025.
16c. (1) Per-bushel fees paid to the department by licensed
17grain dealers as provided in this chapter, including section
18203D.3A 203D.3B.
19(2) This paragraph is repealed July 1, 2025.
20d. (1) Delinquency penalties as provided in this chapter,
21including section 203D.3B.
22(2) This paragraph is repealed July 1, 2025.
23e. The amount of the state assessment on soybeans collected
24pursuant to chapter 185 and transferred to the fund pursuant to
25section 185.26 and this chapter, including section 203D.3B.
26f. The amount of the state assessment on corn collected
27pursuant to chapter 185C and transferred to the fund pursuant
28to section 185C.26 and this chapter, including section 203D.3B.
29e. g. Amounts collected by the state pursuant to legal
30action on behalf of the fund.
31f. h. Interest, earnings on investments, property, or
32securities acquired through the use of moneys in the fund.
33 Sec. 30. Section 203D.3A, Code 2023, is amended by adding
34the following new subsection:
35 NEW SUBSECTION. 3. This section is repealed July 1, 2025.
-15-1 Sec. 31. NEW SECTION. 203D.3B Grain depositors and sellers
2indemnity fund — administration of fees.
31. The board shall annually review the debits of and credits
4to the grain depositors and sellers indemnity fund.
52. a. Not later than May 1 of each year, the board shall
6determine whether to do all of the following:
7(1) Impose, reinstate, adjust, or waive the participation
8fee as provided in this chapter, including sections 203D.3A and
9203D.5.
10(2) Impose, reinstate, adjust, or waive the per-bushel fee
11as provided in this chapter, including sections 203D.3A and
12203D.5.
13b. Based on the board’s determination, the board shall
14impose or reinstate the participation fee and per bushel fee,
15adjust those fees that were effective on the previous July 1,
16or waive those fees that were in effect on the previous July 1,
17in accordance with chapter 17A. The imposition, reinstatement,
18adjustment, or waiver of the fees shall become effective as
19follows:
20(1) For the participation fee, on the following July 1.
21However, the grain dealer or warehouse operator shall continue
22to pay the participation fee at the rate in effect on the prior
23July 1 until the grain dealer or warehouse operator has paid
24the amount owing.
25(2) For a per-bushel fee, on the following July 1.
26c. This subsection is repealed July 1, 2025.
273. a. Notwithstanding subsection 2, if on the last date of
28the grain depositors and sellers indemnity fund’s fiscal year
29as provided in section 203D.3, moneys in the fund exceed twenty
30million dollars, less any encumbered balances or pending or
31unsettled claims, all of the following apply:
32(1) The participation fee shall be waived and shall not be
33assessable or owing for the following fiscal year of the fund.
34However, the grain dealer or warehouse operator shall continue
35to pay any owed participation fee that was in effect prior to
-16-1July 1.
2(2) The per-bushel fee shall be waived and shall not be
3assessable or owing.
4b. Notwithstanding subsection 2, the participation fee and
5per-bushel fee shall be reinstated at any time if the moneys
6in the fund, less any unencumbered balances or pending or
7unsettled claims, equal ten million dollars or less.
8c. This subsection is repealed July 1, 2025.
94. a. Not later than May 1 of each year, the board shall
10determine whether to do all of the following:
11(1) Suspend or reinstate the state assessment on soybeans
12as provided in section 185.26.
13(2) Suspend or reinstate the state assessment on corn as
14provided in section 185C.26.
15b. The fees described in this subsection shall be suspended
16or reinstated effective the following July 1.
175. a. Notwithstanding subsection 4, if on the last date of
18the grain depositors and sellers indemnity fund’s fiscal year
19as provided in section 203D.3, moneys in the fund exceed twenty
20million dollars, less any encumbered balances or pending or
21unsettled claims, all of the following apply:
22(1) The amount of the state assessment imposed on soybeans
23shall be suspended as provided in section 185.26.
24(2) The amount of the state assessment imposed on corn shall
25be suspended as provided in section 185C.26.
26b. Notwithstanding subsection 4, if at any time moneys in
27the fund do not exceed ten million dollars, less any encumbered
28balances or pending or unsettled claims, all of the following
29apply:
30(1) The amount of the state assessment on soybeans shall be
31reinstated as provided in section 185.26.
32(2) The amount of the state assessment on corn shall be
33reinstated as provided in section 185C.26.
346. a. If the amounts of the state assessments imposed on
35soybeans and corn are suspended as provided in this section,
-17-1the department of agriculture and land stewardship shall
2deliver a state assessment transfer suspension notice to the
3department of administrative services as provided in sections
4185.26 and 185C.26.
5b. If the amounts of the state assessments imposed on
6soybeans and corn are reinstated as provided in this section,
7the department of agriculture and land stewardship shall
8deliver a state assessment transfer reinstatement notice to the
9department of administrative services as provided in sections
10185.26 and 185C.26.
11 Sec. 32. Section 203D.4, subsections 2 and 3, Code 2023, are
12amended to read as follows:
132. a. The duties of the board include the review and
14determination of claims, and the review and approval of
15administrative costs of the fund. To carry out these
16duties, the board has the power to adopt rules regarding its
17organization and procedures for determining claims. Further,
18the
19b. (1) Theboard shall approve rules proposed by the
20department for the administration of the participation fees and
21 per-bushel fee prior to their adoption by the department.
22(2) This paragraph is repealed July 1, 2025.
23c. The board may provide comment and advice to the
24department in regard to the department’s administration of
25chapters 203 and 203C where the department’s policies and rules
26may affect the exposure of the fund to liability. However, the
27board shall not become actively involved in a determination by
28the department as to whether disciplinary action is to be taken
29against a particular licensee. The board is not a forum for
30review or appeal in regard to any particular action taken by
31the department against a licensee.
323. a. The department through the grain warehouse bureau
33 shall perform the administrative functions necessary for the
34operation of the board and the fund. Administrative costs
35approved by the board shall be paid from the fund. The rules of
-18-1the department shall contain the rules of the board adopted for
2its organization and its procedures.
3b. (1) The department shall adopt rules for the
4administration of the participation fee and per-bushel fee upon
5the board’s approval of the rules proposed by the department.
6(2) This paragraph is repealed July 1, 2025.
7c. The secretary of agriculture, as president of the board
8as well as head of the department of agriculture and land
9stewardship, shall administer the department so as to minimize
10the risk of loss to the fund while protecting interests of
11depositors and sellers of grain. Policies and rules for the
12administration of chapters 203 and 203C which, as determined
13by the secretary of agriculture, may affect the exposure of
14the fund, shall be presented to the board for comment prior to
15their adoption by the department.
16d. The department shall make reports to the board in regard
17to licensee investigations which may result in disciplinary
18action against a licensee and exposure of the fund. The
19reports may be discussed by the board in closed session
20pursuant to section 21.5, and are confidential. In making
21the report, the department shall make available to the board
22records of licensees which are otherwise confidential under
23section 22.7, 203.16, or 203C.24. However, a determination
24to take disciplinary action against a particular licensee
25shall be made exclusively by the department. A report to the
26board is not a prerequisite to disciplinary action against a
27licensee. Review of any action against a licensee, whether or
28not relating to the fund, shall be made exclusively through the
29department.
30 Sec. 33. Section 203D.5, Code 2023, is amended to read as
31follows:
32203D.5 Fees — imposition, adjustment, or waiver Rates for
33participation and per-bushel fees.
341. The board shall annually review the debits of and credits
35to the grain depositors and sellers indemnity fund created
-19-1in section 203D.3 and shall determine whether to impose the
2participation fee and per-bushel fee as provided in section
3203D.3A, make adjustments to the fees effective on the previous
4July 1, or waive the fees as necessary to comply with this
5section. The board shall make the determination not later than
6May 1 of each year. The board shall impose the fees or adjust
7the fees effective on the previous July 1 in accordance with
8chapter 17A. The imposition or adjustment of the fees shall
9become effective as follows:
10a. For the participation fee, on the following July 1.
11However, the licensee shall continue to pay the participation
12fee at the rate in effect on the prior July 1, until the
13licensee has paid the amount owing.
14b. For a per-bushel fee, on the following July 1.
152. 1. a. Except as provided in paragraph “b”, the The
16board shall determine the rate of a the participation fee owed
17by a licensee grain dealer participating in the fund. The rate
18of the participation fee shall be calculated as follows not
19exceed the greater of the following:
20(1) (a) For a licensed grain dealer For the fund’s fiscal
21year beginning July 1, 2023, not more than fourteen thousandths
22of a one cent per bushel assessed on all the grain dealer’s
23 purchased grain.
24(b) For the fund’s fiscal year beginning July 1, 2023, a
25minimum of fifty dollars.
26(2) (a) For the fund’s fiscal year beginning July 1, 2024,
27not more than seven thousandths of one cent per bushel assessed
28on all the grain dealer’s purchased grain.
29(b) For the fund’s fiscal year beginning July 1, 2024, a
30minimum of twenty-five dollars.
31b. The board shall calculate the grain dealer’s purchased
32grainduring the grain dealer’s last fiscal year at each
33location at which records are maintained for transactions
34of the grain dealer, as determined according to information
35submitted by the grain dealer to the department for the
-20-1issuance or renewal of a license as provided in section 203.5.
2(2) 2. a. The board shall determine the rate of the
3participation fee owed by the warehouse operator participating
4in the fund. The rate of the participation fee shall not
5exceed the greater of the following:
6(1) (a) For a licensed warehouse operator For the fund’s
7fiscal year beginning July 1, 2023, not more than fourteen
8thousandths of a one cent per bushel of bulk grain storage
9capacity or five hundred dollars, whichever is less.
10(b) For the fund’s fiscal year beginning July 1, 2023, a
11minimum of fifty dollars.
12(2) (a) For the fund’s fiscal year beginning July 1, 2024,
13not more than seven thousandths of one cent per bushel of bulk
14grain storage capacity or two hundred fifty dollars, whichever
15is less.
16(b) For the fund’s fiscal year beginning July 1, 2024, a
17minimum of twenty-five dollars.
18b. The board shall calculate the warehouse operator’s bulk
19grain storage capacityfor each warehouse licensed pursuant
20to section 203C.8 or five hundred dollars, whichever is less.
21The participation fee shall be determined using information
22provided to the department by the warehouse operator applying
23for the issuance or renewal of a license as provided in
24sections 203C.7 and 203C.37.
25b. A licensee shall pay a participation fee of at least
26fifty dollars.
273. a. The board shall determine the rate of the per-bushel
28fee owed by a grain dealer. The rate shall not exceed
29one-quarter the following:
30(1) For the fund’s fiscal year beginning July 1, 2023, not
31more than one-quartercent per bushel assessed on all the grain
32dealer’s purchased grain.
33(2) For the fund’s fiscal year beginning July 1, 2024, not
34more than one-eighth cent per bushel assessed on all the grain
35dealer’s purchased grain.
-21- 1b. The board shall calculate the grain dealer’s purchased
2grain in the same manner as the grain dealer’s participation
3fee as provided in subsection 1.
44. If on the last date of the fund’s fiscal year as provided
5in section 203D.3 the assets of the fund exceed eight million
6dollars, less any encumbered balances or pending or unsettled
7claims, all of the following apply: This section is repealed
8July 1, 2025.
9a. The participation fee shall be waived and shall not
10be assessable or owing for the following fiscal year of the
11fund. However, the licensee shall continue to pay any owing
12participation fee that was in effect on the prior July 1.
13b. The per-bushel fee shall be waived and shall not be
14assessable or owing.
155. The board shall reinstate the fees as provided in this
16section if the assets of the fund, less any unencumbered
17balances or pending or unsettled claims, are three million
18dollars or less.
19 Sec. 34. Section 203D.6, subsection 8, Code 2023, is amended
20to read as follows:
218. Payment of claims.
22a. Upon a determination that the claim is eligible for
23payment, the board shall provide for payment of ninety percent
24of the loss, as determined under subsection 5, but not more
25than three six hundred thousand dollars per claimant.
26b. If at any time the board determines that there are
27insufficient funds moneys in the fund to make payment of
28all claims, the board may order that payment be deferred
29on specified claims. The department, upon the board’s
30instruction, shall hold those claims for payment until the
31board determines that the fund again contains there are
32 sufficient assets moneys in the fund to pay deferred claims.
33EXPLANATION
34The inclusion of this explanation does not constitute agreement with
35the explanation’s substance by the members of the general assembly.
-22- 1BACKGROUND — GRAIN DEPOSITORS AND SELLERS INDEMNITY FUND.
2 This bill amends provisions regulating grain dealers purchasing
3grain (Code chapter 203), and grain warehouse operators storing
4grain under bailment (Code chapter 203C). A grain dealer
5or warehouse operator must do business in this state under
6a license issued by the department of agriculture and land
7stewardship (DALS). The licensed grain dealer and licensed
8warehouse operator (licensees) pay license fees for deposit
9in the general fund (Code sections 203.6 and 203C.33). A
10person selling grain to a licensed grain dealer (seller) or
11depositing grain with a licensed warehouse operator (depositor)
12may be reimbursed for a loss incurred by the failure of the
13licensed grain dealer or licensed warehouse operator to honor a
14contractual obligation regarding the transaction (Code section
15203D.6). Upon a determination that the claim is eligible
16for payment, the indemnity board provides for payment of 90
17percent of the loss, but not more than $300,000. The indemnity
18board may defer a claim if there are insufficient assets in
19the fund to fully cover a loss. The indemnity fund is paid
20from several sources, including a participation fee paid by
21those grain dealers and warehouse operators (persons applying
22for or renewing a license) and a per-bushel fee paid only by
23grain dealers (Code sections 203D.3A and 203D.5). For grain
24dealers, the amount of the participation fee is based on
25purchased grain during the grain dealer’s last fiscal year, and
26for warehouse operators, the amount of the participation fee
27is based on warehouse storage capacity. The maximum amount of
28the participation fee is .014 of 1 cent per bushel of either
29purchased or stored grain with a minimum required amount of
30$50. The per-bushel fee is also based on purchased grain with
31a maximum of $0.25 per bushel. The moneys available in the
32indemnity fund are calculated by subtracting from the balance
33any unencumbered obligations or pending claims (Code section
34203D.6). The fund is managed on a state fiscal year basis
35(July 1 to June 30). By May 1 of each year, the indemnity board
-23-1may impose, reinstate, adjust, or waive the fees. However, if
2on the last date of the fund’s fiscal year, the moneys in the
3indemnity fund exceed a ceiling of $8 million, the two fees are
4waived. If at any time moneys in the indemnity fund are at a
5floor of $3 million or less, the indemnity fees are reinstated
6(Code section 203D.5).
7BACKGROUND — CORN AND SOYBEAN CHECKOFFS. An excise tax
8or assessment is imposed on the first purchaser of a number
9of commodities as a pass-through (commonly referred to as a
10“checkoff”). The purpose of the assessment is to finance
11activities which involve improving market development which
12includes aspects related to the commodity’s production and
13market share, such as research and education. Depending upon
14the commodity, the assessment is implemented and administered
15under either a state or federal statute or both. An assessment
16takes effect, is continued, or is terminated on the basis of
17a majority vote of producers voting in a referendum conducted
18by the United States department of agriculture in the case
19of a federal assessment or DALS in the case of a state
20assessment. The checkoff moneys imposed due to the state or
21federal assessment are collected and expended pursuant to a
22promotional order under the direction of a governing body
23of elected producers (referred to as a board, committee, or
24council). For soybeans, the federal government has implemented
25and administers a federal assessment under the direction of the
26united soybean board (7 U.S.C. ch.92) and Iowa has implemented
27and administers a state assessment under the direction of the
28Iowa soybean association board of directors (Code sections
29185.3, 185.11, and 185.13). With the collection of the federal
30assessment, the maximum amount of the state assessment for
31soybeans is .25 of 1 percent of the net market price (Code
32section 185.21) without a right of refund. For corn, the
33state has implemented and administers a state assessment (Code
34chapter 185C) under the direction of the Iowa corn promotion
35board (Code sections 185C.8, 185C.11, and 185C.13). The
-24-1maximum amount of the state assessment for corn is 3 cents per
2bushel (Code section 185C.21) subject to a right of refund
3(Code section 185C.27). For each commodity subject to a state
4assessment, including soybeans and corn, the collected checkoff
5moneys are deposited into a separate state-controlled fund
6established in the state treasury (state fund) and transferred
7by the department of administrative services (DAS) to an
8account in a qualified financial institution eligible to
9hold public funds (Code chapter 12C) and established by the
10governing body of the commodity organization; in this case
11the Iowa soybean association board of directors or Iowa corn
12promotion board.
13BILL’S PROVISIONS. The bill phases out the indemnity fees
14paid to DALS by licensed grain dealers and warehouse operators
15used to support the indemnity fund (Code sections 203D.3A
16and 203D.5). For the fiscal year of the fund beginning July
171, 2023, the amount of the indemnity fees remains the same;
18for the subsequent fiscal year of the fund, the two fees are
19reduced to 50 percent of the prior fiscal year’s amounts;
20and for subsequent fiscal years, the two fees are eliminated
21together with the repeal of statutory language authorizing
22them (Code sections 203D.3A and 203D.5). The bill replaces
23that funding source with checkoff moneys collected from state
24assessments imposed on soybeans and corn. The bill provides
25that market development for both soybeans and corn expressly
26includes the production, storage, and marketing of those
27commodities in commercial channels (amended Code sections
28185.1 and 185C.1). The names of the state-controlled funds
29are changed, from the soybean promotion fund to the soybean
30marketing fund and from the corn promotion fund to the corn
31marketing fund (amended Code sections 185.26 and 185C.26). The
32account under the control of the Iowa corn promotion board is
33named “the corn checkoff account”. Under the bill, 25 percent
34of moneys in each fund is transferred to the indemnity fund and
35appropriated for use by DALS and the indemnity board to support
-25-1claims for losses by depositors and sellers (for soybeans,
2amended Code sections 185.26 and 185.28, and for corn, amended
3Code sections 185C.26 and 185C.28). Moneys deposited into the
4soybean marketing fund or corn marketing fund and transferred
5to the soybean checkoff account, the corn checkoff account,
6or the indemnity fund are public funds (amended Code sections
7185.34 and 185C.34). The bill increases the limits of the fund
8to a ceiling of $20 million, and a floor of $10 million. On May
91, the indemnity board must determine to suspend or reinstate
10the state assessments. However, if on the last date of the
11indemnity fund’s fiscal year, assets in the fund reach the
12$20 million ceiling, the state assessments are suspended and
13if at any time those moneys reach the $10 million floor, the
14state assessments are reinstated (new Code section 203D.3B).
15In either case, DALS must notify DAS of the suspension or
16reinstatement. Finally, the indemnity fund’s payout limit for
17a claim is increased to $600,000 (Code section 203D.6).
-26-da/ns