Print
House File 378 - IntroducedA Bill ForAn Act 1providing for a state assessment for clean water
2imposed on agricultural commodities, including establishing
3procedures for referendums to establish, continue, or
4terminate the state assessment, the transfer of moneys to
5the department of agriculture and land stewardship, state
6sales and use taxes, the natural resources and outdoor
7recreation fund, the establishment of a commission and fund
8and the appropriation of moneys.
9BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1DIVISION I
2IOWA DAIRY INDUSTRY COMMISSION AND
3IOWA STATE DAIRY ASSOCIATION
4 Section 1. Section 179.1, Code 2017, is amended by adding
5the following new subsections:
6 NEW SUBSECTION. 01. “Assessment” means an excise tax on the
7sale of milk which may include a state assessment for direct
8use and a state assessment for clean water.
9 NEW SUBSECTION. 2A. “Federal Act” means the Dairy Product
10Stabilization Act of 1983, 7 U.S.C. §4501 et seq.
11 NEW SUBSECTION. 3A. “National assessment” means an excise
12tax on the sale of milk imposed pursuant to the federal Act.
13 NEW SUBSECTION. 10. “Secretary” means the secretary of
14agriculture.
15 Sec. 2. Section 179.1, subsection 2, Code 2017, is amended
16to read as follows:
172. The term “commission” shall mean “Commission” means the
18Iowa dairy industry commission created in section 179.2.
19 Sec. 3. Section 179.2, subsections 4, 5, 6, and 7, Code
202017, are amended to read as follows:
214. a. When a national promotional order is established by
22the United States department of agriculture pursuant to the
23Dairy Product Stabilization Act of 1983 federal Act, collection
24of the excise tax state assessment for direct use described in
25section 179.5 shall be suspended for the period in which the
26national order is in effect. The commission shall continue to
27operate thereafter for only the period of time necessary to pay
28refunds and disburse the funds moneys remaining in the dairy
29industry fund for the purposes enumerated in administering
30 this chapter. Upon completion of these acts, the existence of
31the Iowa dairy industry commission shall be suspended. The
32secretary of agriculture shall certify the suspension of the
33commission as of a date certain to the Iowa dairy industry
34 commission and the Iowa state dairy association. When the
35existence of the commission is suspended, the terms of office
-1-1being served by individual commissioners shall terminate.
2b. The establishment of a national promotional order shall
3not affect the imposition of a state assessment for clean water
4established pursuant to section 179.13A.
55. When the national promotional order expires, the period
6of suspension of the excise tax state assessment for direct use
7established in section 179.5 shall terminate and the secretary
8of agriculture shall take the steps necessary to collect that
9excise tax state assessment and otherwise fulfill the duties of
10the commission, except that of expending funds moneys collected
11under the excise tax that state assessment, until those
12duties can be resumed by the reactivated commission. When the
13national promotional order expires, the period of suspension of
14the commission shall terminate. The secretary of agriculture
15 shall call the first meeting of the reactivated commission.
16Upon reactivation, the commission shall reimburse the secretary
17of agriculture for expenses incurred in carrying out the duties
18provided in this subsection.
196. When the national dairy promotion program expires and
20the suspension of the Iowa dairy industry commission terminates
21pursuant to subsection 5, all first purchasers shall, in a
22manner designed to reflect their proportionate contributions
23to the national dairy promotion program in its most recently
24completed fiscal year, nominate two resident producers for each
25of the sixteen offices of the commission. The secretary of
26agriculture shall then appoint one nominee from each set of
27two nominees as commissioners of the reactivated Iowa dairy
28industry commission. The secretary of agriculture shall
29stagger the terms of the reactivated commission resulting in
30as nearly as possible one third of the commissioners serving
31for one year, one third of the commissioners serving for two
32years, and one third of the commissioners serving for three
33years. After the initial staggering of terms by the secretary,
34commissioners shall be appointed to three-year terms.
357. The establishment or expiration of a national
-2-1promotional order shall not affect the imposition of a state
2assessment for clean water established pursuant to section
3179.13A.
47. 8. After the reactivated commission has been formed,
5nominations for commissioners shall be made by first
6purchasers in a manner designed to reflect their proportionate
7contributions to the Iowa dairy industry commission in its most
8recently completed fiscal year.
9 Sec. 4. Section 179.3, Code 2017, is amended by adding the
10following new subsection:
11 NEW SUBSECTION. 10. To cooperate with the division of soil
12conservation and water quality of the department of agriculture
13and land stewardship in transferring moneys collected from
14the state assessment for clean water to the clean water fund
15created in section 466B.51.
16 Sec. 5. Section 179.4, Code 2017, is amended to read as
17follows:
18179.4 Expenditure of funds Use of moneys.
19Funds collected through Moneys collected by the commission
20from the excise tax are to state assessment for direct use
21imposed pursuant to section 179.5 shall be used for purposes
22of advertising and promotion, product, process, and nutrition,
23dietetics, and physiology research, nutrition education, public
24relations, research and development, and for other activities
25that contribute to producer efficiency and productivity.
26In addition, the commission shall use these funds moneys
27 to maintain existing markets, to make contributions to
28organizations working toward the purposes of this section,
29and to assist in the development of new or enlarged markets
30for milk, both domestic and foreign. The primary purpose for
31use of these funds moneys is to increase consumption of milk.
32The commission may contract for advertising, publicity, sales
33promotion, research, and educational services the committee
34 commission deems appropriate to further the objectives of this
35section.
-3-1 Sec. 6. Section 179.5, Code 2017, is amended to read as
2follows:
3179.5 Excise tax State assessments — administration of
4moneys — appropriation.
51. a. There is levied and imposed an excise tax a state
6assessment for direct use on all producers within the state
7at a rate of three-fourths of one percent of the gross value
8of milk produced in the state and which may be continued by
9special referendum as provided in section 179.13A.
10b. There is imposed a state assessment for clean water on
11all producers within the state at a rate established by the
12commission not to exceed the rate of the state assessment for
13direct use described in paragraph “a”, if the state assessment
14for clean water is established or continued pursuant to section
15179.13A.
162. All taxes levied and The state assessment for direct use
17and the state assessment for clean water imposed under this
18chapter shall be deducted from the sales price received by the
19producer and shall be collected by the first purchaser, except
20as follows:
21a. If the producer produces milk from cows and sells the
22milk directly to the consumer, the taxes each state assessment
23 shall be remitted by that producer.
24b. If the producer sells milk to a first purchaser outside
25the state, the taxes are each state assessment is due and
26payable by that producer before the shipment is made, except
27that the commission may make agreements with extra state
28purchasers for the keeping of records and the collection of the
29taxes each state assessment as necessary to secure the payment
30of the taxes each state assessment within the time fixed by
31this chapter.
323. All taxes levied and The state assessment for direct use
33and the state assessment for clean water if established and
34 imposed under this chapter, and any other contributions made to
35the dairy industry commission, shall be paid to and collected
-4-1by the commission within thirty days after the end of the month
2during which the milk was marketed.
34. The commission shall remit moneys collected from
4 the taxes state assessment for direct use and any other
5contributions obtained by the commission to the treasurer of
6the state each quarter, and at the same time shall render to
7the director of the department of administrative services an
8itemized and verified report showing the source from which
9the taxes moneys collected from the state assessment for
10direct use and voluntary contributions were obtained. All
11taxes moneys collected from the state assessment for direct
12use and voluntary contributions received, collected, and
13remitted by the commission shall be placed in a special fund
14by the treasurer of state and the director of the department
15of administrative services, to be known as the “dairy industry
16fund” to be used by the Iowa dairy industry commission for
17the purposes set out in this chapter and to administer and
18enforce the laws relative to this chapter. The department of
19administrative services shall transfer moneys from the fund
20to the commission for deposit into an account established
21by the commission in a qualified financial institution.
22The department shall transfer the moneys as provided in a
23resolution adopted by the commission. However, the department
24is only required to transfer moneys once during each day and
25only during hours when the offices of the state are open.
26Moneys deposited in the fund and transferred to the commission
27as provided in this section are appropriated and shall be used
28for the purpose of carrying out the provisions of this chapter.
295. The commission may deposit moneys collected from the
30state assessment for clean water in a qualified financial
31institution until transferred to the clean water fund
32created in section 466B.51. During the period when a
33national promotional order is in effect, the Iowa state dairy
34association shall deposit the moneys collected from that
35state assessment in a qualified financial institution until
-5-1transferred to the clean water fund. If the state assessment
2for clean water is terminated as provided in section 179.13A,
3the remaining moneys collected from that state assessment shall
4be immediately transferred to the clean water fund.
56. The commission may require that the invoice also show the
6total amount of any state assessment for direct use deducted
7from the sales price. If a national assessment is being
8collected, the Iowa state dairy association may require that
9the invoice for the national assessment also show the total
10amount of any national assessment, if permitted by federal law.
11If a state assessment for clean water is collected, the first
12purchaser shall furnish the producer at the time of payment an
13invoice showing the total amount of the state assessment for
14clean water deducted from the sales price.
154. 7. a. A person from whom the excise tax provided in
16this chapter a state assessment for direct use is collected
17may, by application filed with the commission within thirty
18days after the collection of the tax state assessment, have the
19tax state assessment refunded to that person by the commission.
20b. If a state assessment for direct use is imposed, a person
21from whom a state assessment for clean water is collected
22may file an application for a refund with the commission.
23The application for a refund shall allow the person to elect
24whether the refund is for the state assessment for direct
25use or the state assessment for clean water or both. The
26commission shall not approve an application unless the
27application indicates the election. The commission shall
28forward an approved application for a refund of the state
29assessment to the division of soil conservation and water
30quality for payment.
31c. If a national assessment is imposed and a refund of the
32national assessment is authorized, a person from whom a state
33assessment for clean water is collected may file an application
34for a refund with the Iowa state dairy association. The
35application shall to the extent allowed by federal law allow
-6-1the person to elect whether the refund is for the national
2assessment or the state assessment for clean water or both.
3The association shall forward the approved application for a
4refund of the state assessment for clean water to the division
5of soil conservation and water quality for payment.
6 Sec. 7. Section 179.6, Code 2017, is amended to read as
7follows:
8179.6 Records of producers, first purchasers.
9Every producer shipping milk to a first purchaser outside of
10Iowa who is not by agreement with the commission collecting the
11tax state assessment for direct use or the state assessment for
12clean water imposed by this chapter, and every first purchaser
13within the state, and every producer distributing milk directly
14to the consumer, shall keep a complete and accurate record of
15all milk produced or purchased by the person during the period
16for which an excise tax levy a state assessment is imposed
17under this chapter. The records shall be in the form and
18contain the information prescribed by the commission, shall be
19preserved by the person charged with their making for a period
20of two years, and shall be offered or submitted for inspection
21at any time upon written or oral request by the commission or
22its duly authorized agent or employee.
23 Sec. 8. Section 179.8, Code 2017, is amended to read as
24follows:
25179.8 Payment of expenses — limitation.
261. No part of the expense incurred by the commission
27shall be paid out of moneys in the state treasury except
28moneys transferred to the commission from the dairy industry
29fund. Moneys transferred from the fund to the commission, as
30provided in section 179.5, shall be used for the payment of
31all salaries, and other expenses necessary, to carry out the
32provisions of this chapter. However, in no event shall the
33total expenses exceed the total taxes amount collected from the
34state assessment for direct use collected and transferred from
35the fund to the commission.
-7- 12. No more than five percent of the excise tax collected
2 moneys collected from the state assessment for direct use and
3received by the commission pursuant to section 179.5 shall be
4utilized for administrative expenses of the commission.
5 Sec. 9. Section 179.9, Code 2017, is amended to read as
6follows:
7179.9 Investigations by commission.
8The commission shall have the power to cause its authorized
9agents to enter upon the premises of any person charged by this
10chapter or by agreement with the commission with the collection
11of the excise tax a state assessment for direct use or a state
12assessment for clean water imposed by this chapter, and to
13cause to be examined by any such agent any books, records,
14documents, or other instruments bearing upon the amount of
15moneys from such tax state assessment collected or to be
16collected by such person; provided that the commission has
17reasonable ground to believe that all moneys from the tax state
18assessments herein levied has imposed have not been collected,
19or if it has they have not been fully accounted for as herein
20provided.
21 Sec. 10. Section 179.10, Code 2017, is amended to read as
22follows:
23179.10 Report.
24The commission shall each year prepare and submit a report
25summarizing the activities of the commission under this chapter
26to the auditor of state and the secretary of agriculture. The
27report shall show all income, expenses, and other relevant
28information concerning fees the state assessment for direct
29use collected and expended under this chapter. The report
30shall also show the collection and transfer of moneys received
31from any state assessment for clean water imposed under this
32chapter.
33 Sec. 11. Section 179.13, Code 2017, is amended to read as
34follows:
35179.13 Referendum Initial referendum.
-8- 11. a. At a time designated by the commission within
2eighteen months after termination of the national promotional
3order made pursuant to the Dairy Product Stabilization
4 federal Act of 1983, the commission shall conduct a an initial
5 referendum under administrative procedures prescribed by the
6department.
7b. Upon signing a statement certifying to the department
8that the person is a bona fide producer as defined in this
9chapter, each producer is entitled to one vote in each initial
10 referendum. When the secretary is required to determine the
11approval or disapproval of producers under this section, the
12secretary shall consider the approval or disapproval of a
13cooperative association of producers, engaged in a bona fide
14manner in marketing milk, as the approval or disapproval of the
15producers who are members of or contract with the cooperative
16association of producers. If a cooperative association
17elects to vote on behalf of its members, the cooperative
18association shall provide each producer on whose behalf the
19cooperative association is expressing approval or disapproval
20with a description of the question presented in the initial
21 referendum together with a statement of the manner in which
22the cooperative association intends to cast its vote on behalf
23of the membership. The information shall inform the producer
24of procedures to follow to cast an individual ballot if the
25producer chooses to do so within the period of time established
26by the secretary for casting ballots. The notification shall
27be made at least thirty days prior to the initial referendum
28and shall include an official ballot. The ballots shall be
29tabulated by the secretary and the vote of the cooperative
30association shall be adjusted to reflect the individual votes.
31c. The department shall count and tabulate the ballots
32filed during the initial referendum within thirty days of the
33close of the initial referendum. If from the tabulation the
34department determines that a majority of the total number of
35producers voting in the initial referendum favors the proposal,
-9-1the excise tax state assessment for direct use provided for in
2this chapter shall be continued. The ballots cast pursuant
3to this section constitute complete and conclusive evidence
4for use in determinations made by the department under this
5chapter.
62. The secretary may conduct a special referendum at any
7time after the Iowa dairy industry commission is reactivated,
8and shall hold a conduct a special referendum on request upon
9receiving a petition of a representative group comprising ten
10percent or more of the number of producers eligible to vote,
11to determine whether the producers favor the termination or
12 suspension or termination of the excise tax state assessment
13for direct use. The secretary shall suspend or terminate
14collection of the excise tax within state assessment for direct
15use no later than six months after the secretary determines
16that suspension or termination of the excise tax state
17assessment is favored by a majority of the producers voting
18in the special referendum, and shall suspend or terminate the
19excise tax state assessment in an orderly manner as soon as
20practicable after the determination.
21 Sec. 12. NEW SECTION. 179.13A Referendums and special
22questions — establishment, increase, or termination of a state
23assessment.
241. a. If a state assessment for direct use is established,
25and upon receipt of a petition of producers that otherwise
26complies with requirements to conduct an initial referendum
27under section 179.13, subsection 1, the secretary shall conduct
28a special referendum to determine whether to establish a state
29assessment for clean water.
30b. Upon receipt of a petition of producers that otherwise
31complies with requirements to conduct an initial referendum
32under section 179.13, the secretary shall include as part of
33the initial referendum conducted pursuant to section 179.13,
34subsection 1, a separate special question whether to establish
35a state assessment for clean water, if the secretary determines
-10-1the inclusion of the special question is cost-effective or the
2petition demands inclusion.
3c. The secretary shall conduct the special referendum under
4this subsection or include the special question as part of an
5initial or special referendum conducted under section 179.13,
6subsection 1, in consultation with the commission and which
7may be based on the same procedures for conducting an initial
8referendum under section 179.13.
9d. If the secretary determines that the establishment of
10a state assessment for clean water is favored by a majority
11of the producers voting in a special referendum under this
12subsection or in an initial referendum conducted under section
13179.13, subsection 1, that includes a special question as
14provided in paragraph “b”, the state assessment shall commence
15on a date determined by the secretary after consultation with
16the commission but not later than six months after the date
17that the special or initial referendum was conducted.
182. a. If a national assessment is being collected, and upon
19receipt of a petition of producers that otherwise complies with
20requirements to conduct an initial referendum under section
21179.13, subsection 1, the secretary shall conduct a special
22referendum to determine whether to establish a state assessment
23for clean water.
24b. Upon receipt of a petition of producers that otherwise
25complies with requirements to conduct an initial referendum
26under section 179.13, subsection 1, the secretary shall include
27as part of the referendum to establish a national assessment,
28a separate special question whether to establish a state
29assessment for clean water, if the secretary determines the
30inclusion of the special question complies with federal law and
31either is cost-effective or the petition demands inclusion.
32c. The secretary shall conduct the special referendum under
33this subsection or include the special question as part of a
34referendum to establish a national referendum in consultation
35with the Iowa state dairy association and which may be based on
-11-1the same procedures for conducting an initial referendum under
2section 179.13, subsection 1, or a referendum to establish a
3national assessment.
4d. If the secretary determines that the establishment of a
5state assessment for clean water is favored by a majority of
6the producers voting in a special referendum conducted under
7paragraph “a” or a referendum to establish a national assessment
8that includes a special question as provided in paragraph “b”,
9the state assessment shall commence on a date determined by
10the secretary after consultation with the Iowa state dairy
11association but not later than six months after the date that
12the special referendum or referendum establishing a national
13assessment was conducted.
143. a. If the rate of the national assessment has been
15increased, and upon receipt of a petition of producers that
16otherwise complies with requirements to conduct an initial
17referendum under section 179.13, subsection 1, the secretary
18shall conduct a special referendum to determine whether to
19increase the rate of the state assessment for clean water to
20a rate established by the Iowa state dairy association not to
21exceed the rate of the national assessment.
22b. Upon receipt of a petition of producers that otherwise
23complies with requirements to conduct an initial referendum
24under section 179.13, subsection 1, the secretary shall include
25as part of a referendum to increase the rate of the national
26assessment, a separate special question whether to increase
27the rate of the state assessment for clean water at a rate
28established by the Iowa state dairy association not to exceed
29the increase in the national assessment, if the secretary
30determines the inclusion of the special question complies
31with federal law and is either cost-effective or the petition
32demands inclusion.
33c. The secretary shall conduct the special referendum under
34this subsection, or include the special question as part of a
35referendum to increase the national assessment, in consultation
-12-1with the Iowa state dairy association and which may be based on
2the same procedures for conducting an initial referendum under
3section 179.13, subsection 1, or a referendum to increase the
4rate of the national assessment.
5d. If the national assessment is increased, and the
6secretary determines that an increase in the state assessment
7for clean water is favored by a majority of the producers
8voting in a special referendum or referendum to increase
9the rate of the national assessment, the rate of the state
10assessment shall be increased on a date determined by the
11secretary after consultation with the Iowa state dairy
12association but not later than six months after the date that
13the special referendum or referendum establishing a national
14assessment was conducted. If a special referendum or special
15question to increase the rate of the state assessment for clean
16water does not pass, the result of the vote shall not affect
17the existence or length of the period when the state assessment
18is in effect.
194. a. If a state assessment for direct use is imposed,
20and upon receipt of a petition of producers that otherwise
21complies with requirements to conduct a special referendum
22under section 179.13, subsection 2, the secretary shall conduct
23a special referendum to determine whether to terminate the
24state assessment for clean water.
25b. Upon receipt of a petition of producers that otherwise
26complies with requirements to conduct a special referendum
27under section 179.13, subsection 2, the secretary shall include
28as part of a special referendum to suspend or terminate the
29state assessment for direct use conducted pursuant to section
30179.13, subsection 2, a separate special question whether
31to terminate the state assessment for clean water, if the
32secretary determines the inclusion of the special question is
33cost-effective or the petition demands inclusion.
34c. The secretary shall conduct the special referendum under
35this subsection or include the special question as part of a
-13-1special referendum conducted under section 179.13, subsection
22, in consultation with the commission and which may be based
3on the same procedures for conducting a special referendum
4under section 179.13, subsection 2.
5d. If the secretary determines that the termination of
6a state assessment for clean water is favored by a majority
7of the producers voting in a special referendum under this
8subsection, or a special referendum conducted under section
9179.13, subsection 2, the state assessment shall terminate on a
10date determined by the secretary after consultation with the
11commission but not later than six months after the date that
12the special or initial referendum was conducted. The secretary
13shall terminate the state assessment in an orderly manner as
14soon as practical.
155. The secretary shall terminate the state assessment for
16clean water upon determining that the state assessment for
17direct use and the national assessment are terminated. The
18secretary shall terminate the state assessment for clean water
19in an orderly manner as soon as practical.
20DIVISION II
21IOWA BEEF CATTLE PRODUCERS ASSOCIATION — EXECUTIVE COMMITTEE
22 Sec. 13. Section 181.1, subsection 10, Code 2017, is amended
23to read as follows:
2410. “State assessment” means an excise tax on the sale of
25cattle imposed pursuant to this chapter which may include a
26state assessment for direct use and a state assessment for
27clean water.
28 Sec. 14. Section 181.2, Code 2017, is amended by adding the
29following new subsection:
30 NEW SUBSECTION. 5. Cooperate with the division of soil
31conservation and water quality of the department of agriculture
32and land stewardship in transferring moneys collected from
33the state assessment for clean water to the clean water
34fund created in section 466B.51 and for being reimbursed for
35reasonable expenses incurred in conducting an initial or
-14-1special referendum to establish, continue, or terminate a state
2assessment for clean water.
3 Sec. 15. Section 181.7A, Code 2017, is amended to read as
4follows:
5181.7A Commencement of federal assessment — suspension and
6recommencement of state assessment — rate.
71. Prior to the commencement of the collection of
8the federal assessment, the executive committee may seek
9certification as a qualified state beef council within the
10meaning of the federal Act.
112. The executive committee shall suspend the state
12assessment for direct use upon collection of the federal
13assessment. The state assessment for direct use shall
14recommence upon the earlier of the following:
15a. The noncollection of the federal assessment. The
16recommenced state assessment for direct use shall be imposed
17for a four-year period. Its effective date shall be the first
18date for which the federal assessment is not collected.
19b. The passage of a special referendum pursuant to section
20181.19 regardless of whether a federal assessment is being
21collected.
223. The rate of the recommenced state assessment shall be the
23same as the rate that was last in effect under section 181.19
24immediately prior to the suspension of the state assessment.
254. The state assessment for clean water shall continue to be
26imposed during any period of suspension of the state assessment
27for direct use so long as the state assessment for clean water
28is not terminated pursuant to section 181.19A.
29 Sec. 16. Section 181.8, Code 2017, is amended to read as
30follows:
31181.8 Executive committee — entering premises — examining
32records.
33The executive committee may authorize its agents to enter
34at a reasonable time upon the premises of any purchaser
35charged by this chapter with remitting the a state assessment
-15- 1for direct use or a state assessment for clean water to the
2executive committee, and to. The agents may examine records
3and other instruments relating to the collection of the a state
4assessment. However, the executive committee must first have
5reasonable grounds to believe that the a state assessment has
6not been remitted or fully accounted for.
7 Sec. 17. Section 181.11, Code 2017, is amended to read as
8follows:
9181.11 Collection of state assessment assessments.
101. A state assessment for direct use or a state assessment
11for clean water imposed as provided in this chapter shall be
12levied and collected from the purchaser on each sale of cattle
13at a rate provided in this chapter. The state assessment for
14direct use or a state assessment for clean water shall be
15imposed on any person selling cattle and shall be deducted
16by the purchaser from the price paid to the seller. The
17purchaser, at the time of the sale, shall make and deliver to
18the seller a separate invoice for each sale showing the names
19and addresses of the seller and the purchaser, the number of
20cattle sold, and the date of sale. The purchaser shall forward
21the state assessment for direct use and any state assessment
22for clean water to the executive committee at a time prescribed
23by the executive committee, but not later than the last day of
24the month following the end of the prior reporting period in
25which the cattle are sold.
262. The executive committee may enter into arrangements with
27persons purchasing cattle outside of this state for remitting
28the state assessment for direct use and any state assessment
29for clean water by such purchasers.
30 Sec. 18. Section 181.12, Code 2017, is amended to read as
31follows:
32181.12 Remission of state assessment assessments on
33application.
341. a. A person from whom a state assessment for direct
35use is collected may, by written application filed with the
-16-1executive committee within ninety days after its collection,
2have the amount remitted to the person by the executive
3committee.
4b. A person from whom a state assessment for clean water is
5collected may, by written application filed with the council
6as provided in paragraph “a”, have the amount remitted to the
7person by the division of soil conservation and water quality
8of the department of agriculture and land stewardship. Within
9sixty days after its collection, the council shall transmit any
10approved application to the division for a refund payment.
112. The information that the a state assessment described
12in subsection 1 is refundable and the address of the executive
13committee to which application for a refund may be made shall
14appear on the invoice of sale form supplied by the purchaser to
15the producer near the area on the form which shows the amount
16of the state assessment paid.
173. a. The executive committee shall furnish uniform
18application for refund forms and make the refund forms readily
19available to all producers.
20b. The form shall allow the applicant to elect whether the
21refund is for the state assessment for direct use or the state
22assessment for clean water or both. The council shall not
23approve an application unless the application indicates the
24election.A purchaser charged by this chapter with remitting
25the a state assessment shall make the forms readily available
26to all producers.
27 Sec. 19. Section 181.13, Code 2017, is amended to read as
28follows:
29181.13 Administration of moneys originating from state
30assessment assessments — appropriation.
311. a. All moneys, other than moneys from the state
32assessments assessment for clean water imposed under this
33chapter shall be paid to and collected by the executive
34committee and deposited with the treasurer of state in a
35separate cattle promotion fund which shall be created by the
-17-1treasurer of state. The department of administrative services
2shall transfer moneys from the fund to the executive committee
3for deposit into an account established by the executive
4committee in a qualified financial institution. The department
5shall transfer the moneys as provided in a resolution adopted
6by the executive committee. However, the department is only
7required to transfer moneys once during each day and only
8during hours when the offices of the state are open. From
9the moneys, other than moneys from the state assessment for
10clean water, collected, deposited, and transferred to the
11executive committee, in accordance with the provisions of this
12chapter, the executive committee shall first pay the costs
13of referendums held pursuant to this chapter, the costs of
14collection of such state assessments, and the expenses of its
15agents. At least ten percent of the remaining moneys shall
16be remitted to the association in proportions determined by
17the executive committee, for use in a manner not inconsistent
18with section 181.7. The remaining moneys, with approval of a
19majority of the executive committee, shall be expended as the
20executive committee finds necessary to carry out the provisions
21and purposes of this chapter. However, in no event shall the
22total expenses exceed the total amount transferred from the
23fund for use by the executive committee.
242. b. All moneys deposited in the cattle promotion fund and
25transferred to the executive committee pursuant to this section
26are appropriated and shall be used for the administration
27of this chapter and for the payment of claims based upon
28obligations incurred in the performance of activities and
29functions set forth in this chapter.
303. c. If the state assessment for direct use is suspended
31as provided in section 181.7A or a continuance special
32 referendum to continue the state assessment for clean water
33 fails to pass as provided in section 181.19A, moneys remaining
34in the cattle promotion fund and transferred to the executive
35committee shall continue to be transferred and expended in
-18-1accordance with the provisions of this chapter until exhausted.
22. a. All moneys collected from the state assessment for
3clean water imposed under this chapter shall be paid to and
4collected by the executive committee and may be deposited in a
5qualified financial institution until transferred to the clean
6water fund created in section 466B.51. If the state assessment
7for clean water is terminated as provided in section 181.19A,
8the remaining moneys collected from that state assessment shall
9be immediately transferred to the clean water fund.
10b. Except as otherwise expressly provided in this chapter,
11moneys collected from the state assessment for clean water
12shall not be used for any purpose other than to be transferred
13to the clean water fund created in section 466B.51.
14 Sec. 20. Section 181.19, Code 2017, is amended to read as
15follows:
16181.19 Initial and special referendums.
171. The secretary shall, upon the petition of five hundred
18producers, conduct an initial referendum to determine whether
19a state assessment for direct use is to be established. If
20established, the state assessment for direct use shall be
21 imposed, at a rate established by the executive committee
22not to exceed one dollar per head on all cattle sold for any
23purpose.
242. The secretary shall, upon the petition of five hundred
25producers, conduct a special referendum to do any of the
26following:
27a. Determine whether a state assessment for direct use
28 already imposed shall be increased to a rate, established by
29the executive committee, not to exceed one dollar per head on
30all cattle sold for any purpose.
31b. Determine whether a state assessment for direct use
32 suspended pursuant to section 181.7A is to be in addition to a
33federal assessment. The state assessment for direct use shall
34be imposed at a rate not to exceed one dollar per head on all
35cattle sold for whatever purpose.
-19- 13. a. Upon receipt of a petition that otherwise complies
2with the requirements of subsection 1, the secretary shall
3conduct a special referendum to establish a state assessment
4for clean water to be imposed in the same manner as a state
5assessment for direct use.
6b. The rate of the state assessment for clean water shall
7be established by the executive committee not to exceed the
8rate of the state assessment for direct use in effect on the
9date that the special referendum to impose a state assessment
10for clean water passes. However, if a federal assessment is
11imposed, the rate of the state assessment for clean water shall
12be established by the executive committee not to exceed the
13rate of the federal assessment. If a state assessment for
14direct use and a federal assessment are both being imposed,
15the rate of the state assessment for clean water shall be
16established by the executive committee not to exceed the rate
17of the state assessment for direct use plus the rate of the
18federal assessment.
194. Upon receipt of a petition that otherwise complies with
20the requirements of subsection 1, the secretary shall include
21as part of the initial referendum a separate special question
22whether to establish a state assessment for clean water as
23described in subsection 3, if the secretary determines the
24inclusion of the special question is cost-effective or the
25petition demands inclusion.
265. a. Upon receipt of a petition that otherwise complies
27with the requirements of subsection 2, the secretary shall
28conduct a special referendum to change the rate of the state
29assessment for clean water to be established by the executive
30committee not to exceed the rate of the state assessment
31for direct use and any federal assessment as described in
32subsection 2.
33b. Upon receipt of a petition that otherwise complies with
34the requirements of subsection 2, the secretary shall include
35as part of the special referendum conducted under subsection
-20-12 a separate special question whether to change the rate of
2the state assessment for clean water to be established by
3the executive committee not to exceed the rate of the state
4assessment for direct use and any federal assessment as
5described in subsection 2, if the secretary determines the
6inclusion of the special question is cost-effective or the
7petition demands inclusion.
86. a. If a an initial referendum or a special referendum
9described in this section passes, the secretary shall establish
10an effective date to commence the state assessment for direct
11use or the change in the rate of the state assessment for
12direct use. However, the state assessment or the change in the
13rate of the state assessment must be commenced within ninety
14days from the date that the secretary determines that the
15referendum has passed.
16b. If a state assessment for clean water is established
17or the rate of the state assessment for clean water changes
18under this section, the secretary shall establish an effective
19date to commence the state assessment or change the rate of the
20state assessment in the same manner as provided in paragraph
21“a”.
224. 7. a. If a special referendum to increase the rate of
23the state assessment for direct use does not pass, the result
24of the special referendum shall not affect the existence or
25length of the state assessment that is in effect on the date
26that the special referendum was conducted.
27b. If a special referendum, or a separate special question
28that is part of a special referendum conducted under this
29section, to change the rate of the state assessment for clean
30water does not pass, the result of the vote shall not affect
31the existence or period that the state assessment is in effect.
328. A state assessment for clean water is terminated on the
33date that the state assessment for direct use is terminated,
34unless a federal assessment is imposed.
35 Sec. 21. Section 181.19A, Code 2017, is amended to read as
-21-1follows:
2181.19A Continuance referendum Special referendums —
3continuance or termination.
41. The secretary shall, upon the receipt of a petition
5of producers, conduct a continuance special referendum to
6determine whether a state assessment for direct use established
7in section 181.19 should be renewed continued. The secretary
8must receive the petition not less than one hundred fifty and
9not more than two hundred forty days before the four-year
10anniversary of a state assessment’s the effective date of
11the state assessment for direct use. The petition must be
12signed within that period by a number of producers equal to
13or greater than two percent of the number of producers in
14this state reported in the most recent United States census
15of agriculture, requesting a special referendum to determine
16whether to continue the state assessment for direct use.
17The special referendum shall be conducted not earlier than
18thirty days before the four-year anniversary date of the state
19assessment for direct use.
202. a. The secretary shall, upon receipt of a petition
21of producers otherwise complying with the requirements of
22subsection 1, conduct a special referendum to determine whether
23the state assessment for clean water established in section
24181.19 should be continued. The special referendum shall be
25conducted in the same manner as a special referendum conducted
26under subsection 1.
27b. The secretary shall, upon receipt of a petition complying
28with the requirements of subsection 1, include as part of a
29special referendum provided in subsection 1 a separate special
30question whether a state assessment for clean water should be
31continued, if the secretary determines the inclusion of the
32separate special question is cost-effective or the petition
33demands inclusion.
342. 3. a. If the secretary determines that a continuance
35 special referendum has passed under subsection 1, the state
-22-1assessment for direct use shall continue in effect for four
2additional years from the anniversary of its effective date.
3b. If the secretary determines that a special referendum
4or special question to continue the state assessment for clean
5water has passed under subsection 2, the state assessment shall
6be in effect until the anniversary of the effective date of the
7state assessment for direct use described in paragraph “a”.
83. 4. a. If the secretary determines that the a special
9 referendum to continue the state assessment for direct use has
10not passed, the secretary and the executive committee shall
11terminate the state assessment in an orderly manner as soon as
12practicable after the determination.
13b. If the secretary determines that a special referendum to
14continue the state assessment for clean water has not passed,
15the secretary and the executive committee shall terminate the
16state assessment in the same manner as described in paragraph
17“a”.
18c. A state assessment for clean water is terminated on the
19date that the state assessment for direct use is terminated,
20unless a federal assessment is imposed.
215. a. Another If the secretary determines that a special
22referendum to continue the state assessment for direct use has
23not passed, another initial referendum conducted under section
24181.19 to determine whether to establish a state assessment
25for direct use shall not be held conducted for at least one
26hundred eighty days from the date that the state assessment is
27terminated.
28b. If the secretary determines that a special referendum to
29continue the state assessment for clean water has not passed,
30another special referendum to establish the state assessment or
31another initial or special referendum that includes a separate
32special question to establish the state assessment shall not be
33conducted for at least one hundred eighty days from the date
34that the state assessment was terminated.
354. 6. If no a valid petition for a continuance referendum
-23- 1provided in this section is not received by the secretary
2within the time period provided in this section, the state
3assessment for direct use or the state assessment for clean
4water shall continue in effect for four additional years from
5the anniversary of its the effective date of the initial
6referendum establishing the state assessment for direct use.
7DIVISION III
8IOWA SHEEP AND WOOL PROMOTION BOARD
9 Sec. 22. Section 182.1, subsection 1, Code 2017, is amended
10to read as follows:
111. “Assessment” means an excise tax on the sale of sheep
12or wool as provided in this chapter which may include an
13assessment for direct use and a state assessment for clean
14water.
15 Sec. 23. Section 182.1, Code 2017, is amended by adding the
16following new subsection:
17 NEW SUBSECTION. 6A. “Qualified financial institution” means
18a bank or credit union as defined in section 12C.1.
19 Sec. 24. Section 182.2, Code 2017, is amended to read as
20follows:
21182.2 Petition for initial referendum election.
22Upon receipt of a petition signed by at least fifty producers
23in each district requesting a an initial referendum by election
24 to determine whether to establish the board and to impose an
25assessment for direct use, the secretary shall call a the
26initial referendum to be conducted within sixty days following
27receipt of the petition.
28 Sec. 25. Section 182.3, Code 2017, is amended to read as
29follows:
30182.3 Notice of initial referendum.
31The secretary shall give notice of the initial referendum
32on the question of whether to establish an Iowa sheep and wool
33promotion board and to impose the an assessment for direct use
34 by publishing the notice for a period of not less than five
35days in at least one newspaper of general circulation in the
-24-1state. The notice shall state the voting places, period of
2time for voting, and other information deemed necessary by the
3secretary.
4A An initial referendum shall not be commenced until five
5days after the last date of publication.
6 Sec. 26. Section 182.4, Code 2017, is amended to read as
7follows:
8182.4 Establishment of sheep and wool promotion board —
9assessment assessments — termination.
101. Each producer who signs a statement certifying that
11the producer is a bona fide producer is entitled to one vote
12in an initial referendum conducted under this section. At
13the close of the initial referendum, the secretary shall
14count and tabulate the ballots cast. If a majority of voters
15favor establishing an Iowa sheep and wool promotion board and
16imposing establishing an assessment for direct use, an Iowa
17sheep and wool promotion the board and assessment shall be
18established. The assessment for direct use shall be imposed
19commencing not more than sixty days following the initial
20 referendum as determined by the Iowa sheep and wool promotion
21 board, and shall continue until the board and assessment for
22direct use are terminated by a special referendum as provided
23in conducted pursuant to subsection 2 4.
242. a. If the board is in existence, and upon receipt of
25a petition signed by at least twenty-five producers in each
26district requesting a special referendum to determine whether
27to establish a state assessment for clean water, the secretary
28shall call the special referendum to be conducted in the same
29manner as provided in subsection 1.
30b. If a board is not in existence, and upon receipt of a
31petition that complies with the requirements of paragraph “a”
32 the secretary shall include as part of the initial referendum
33a separate special question whether to establish a state
34assessment for clean water, if the secretary determines the
35inclusion of the special question is cost-effective or the
-25-1petition demands inclusion.
2c. If a majority of voters favor establishing the state
3assessment for clean water, the state assessment shall be
4imposed in the same manner and for the same period as the
5assessment for direct use described in subsection 1.
63. a. If a majority of the voters do not favor establishing
7an Iowa sheep and wool promotion a board and imposing the an
8 assessment for direct use, the board and an assessment shall
9not be established, and the assessment shall not be imposed
10and the board shall not be established until another initial
11 referendum is held conducted under this chapter and a majority
12of the voters favor establishing a board and imposing the an
13 assessment. If a an initial referendum fails, another initial
14 referendum shall not be held within conducted for at least
15 one hundred eighty days from the date of the last initial
16referendum.
17b. If a majority of the voters do not favor establishing
18a state assessment for clean water, the state assessment
19shall not be established until another special referendum, or
20another separate special question that is part of an initial
21referendum, is conducted under this chapter and a majority
22of the voters favor establishing the state assessment. If a
23special referendum or special question fails, another special
24referendum or initial referendum which includes a special
25question shall not be conducted within one hundred eighty days
26from the date that the last such special referendum or initial
27referendum was conducted.
282. 4. Upon receipt of a petition signed by at least
29twenty-five producers in each district requesting a special
30 referendum election to determine whether to terminate the
31establishment of the Iowa sheep and wool promotion board and
32to terminate the imposition of the and the assessment for
33direct use, the secretary shall call a special referendum to
34be conducted within sixty days following the receipt of the
35petition. The petitioners shall guarantee the payment of the
-26-1costs of a the special referendum held conducted under this
2subsection. If the majority of the voters of a voting at the
3special referendum do not favor termination, an additional
4special referendum may be held conducted when the secretary
5receives a petition signed by at least twenty-five producers in
6each district. However, the additional referendum shall not be
7held within conducted for at least one hundred eighty days from
8the date of the last such special referendum.
95. a. Upon receipt of a petition that otherwise complies
10with the requirements of subsection 4 requesting a special
11referendum election to determine whether to terminate the
12establishment of the state assessment for clean water, the
13secretary shall call a special referendum to be conducted in
14the same manner as provided in subsection 4.
15b. Upon receipt of a petition that otherwise complies
16with the requirements of subsection 4, the secretary shall
17include as part of the special referendum conducted under that
18subsection a separate special question whether to terminate the
19state assessment for clean water, if the secretary determines
20the inclusion of the special question is cost-effective or the
21petition demands inclusion.
22c. The petitioners shall guarantee the payment of the costs
23of the special referendum conducted under this subsection.
24d. If the majority of the voters of a special referendum
25conducted under this subsection do not favor termination,
26an additional special referendum may be conducted when
27the secretary receives a petition complying with the same
28requirements as described in this subsection. However, the
29additional special referendum shall not be conducted for at
30least one hundred eighty days from the date of the last such
31special referendum.
326. A state assessment for clean water is terminated on the
33date that the assessment for direct use is terminated. The
34secretary shall terminate the state assessment in an orderly
35manner as soon as practical.
-27-1 Sec. 27. Section 182.11, Code 2017, is amended to read as
2follows:
3182.11 Purposes of board.
41. The purposes of the board shall be to:
51. a. Enter into contracts or agreements with or make
6grants to recognized and qualified agencies, individuals,
7or organizations for the development and carrying out of
8research and education programs directed toward better and more
9efficient production, marketing, and utilization of sheep and
10wool and their products.
112. b. Provide methods and means, including, but not limited
12to, public relations and other promotion techniques for the
13maintenance of present markets.
143. c. Assist in development of new or larger markets, both
15domestic and foreign, for sheep and wool and their products.
162. The board shall cooperate with the division of soil
17conservation and water quality of the department of agriculture
18and land stewardship in doing all of the following:
19a. Transferring moneys collected from the state assessment
20for clean water to the clean water fund created in section
21466B.51.
22b. Being reimbursed for reasonable expenses incurred in
23conducting an initial or special referendum to establish,
24continue, or terminate a state assessment for clean water.
25 Sec. 28. Section 182.13, Code 2017, is amended to read as
26follows:
27182.13 Compensation — meetings.
28Members of the board may receive payment for their actual
29expenses and travel in performing official board functions.
30Payment shall be made from amounts collected from the
31assessment for direct use. No A member of the board shall not
32 be a salaried employee of the board or any organization or
33agency receiving funds moneys collected from the board. The
34board shall meet at least once every three months, and at other
35times it deems necessary.
-28-1 Sec. 29. Section 182.13B, Code 2017, is amended to read as
2follows:
3182.13B Assessment rate rates.
41. a. If a majority of voters voting at a an initial
5 referendum conducted pursuant to section 182.4 approve the
6establishment of an Iowa sheep and wool promotion theboard and
7the imposition of an assessment for direct use, the assessment
8shall be imposed on wool and sheep at the following rates:
9a. (1) For wool, two cents imposed on each pound of wool
10sold by a producer.
11b. (2) For sheep, ten cents imposed on each head of sheep
12sold by a producer.
13b. If a majority of voters voting at a special referendum
14conducted pursuant to section 182.4 approve the establishment
15of a state assessment for clean water, the state assessment
16shall be imposed on wool and sheep at the rates established by
17board resolution not to exceed the rates described in paragraph
18“a”.
192. a. Notwithstanding subsection 1, upon a resolution
20adopted by the board, the secretary shall call a special
21referendum for voters to authorize increasing the assessment
22 rate of the assessment for direct use imposed on sheep as
23provided in this section or increasing the assessment for
24direct use imposed on sheep as provided in this section.
25b. Notwithstanding subsection 1, upon a resolution adopted
26by the board, the secretary shall call a special referendum for
27voters to authorize increasing the rate of the state assessment
28for clean water imposed on sheep as provided in this section.
29The secretary shall include as part of the special referendum
30to increase the rate of the assessment for direct use a
31separate special question whether to increase the rate of the
32state assessment for clean water, if the secretary determines
33the inclusion of the special question is cost-effective or the
34resolution demands inclusion.
35b. c. The special referendum to increase the rate of the
-29-1assessment for direct use or to increase the rate of the state
2assessment for clean water shall be conducted in the same
3manner as a an initial referendum conducted upon receipt of
4a petition as provided in this chapter section 182.4, unless
5otherwise provided in the board’s resolution. Only producers
6are eligible to vote in an election the special referendum and
7each producer is entitled to one vote.
83. a. The special referendum to increase the rate of the
9assessment for direct use conducted pursuant to subsection 2
10shall allow a voter to cast a ballot for the following two
11questions:
12a. (1) For the first question, whether to authorize an
13increase in the rate of assessment rate for direct use to
14twenty-five cents imposed on each head of sheep.
15b. (2) For the second question, if the first question is
16approved by a majority of voters, whether to also authorize the
17board to increase that assessment the rate of the assessment
18for direct use by future resolution as provided in this
19section.
20b. The special referendum to increase the rate of the state
21assessment for clean water shall be conducted in the same
22manner as described in subsection 3 and shall allow a voter to
23cast a ballot for the following two questions:
24(1) For the first question, whether to authorize an increase
25in the rate of state assessment for clean water to a rate
26established by board resolution not to exceed the increased
27rate of assessment for direct use described in subsection 3,
28paragraph “a”, subparagraph (1).
29(2) For the second question, if the first question is
30approved by a majority of voters, whether to also authorize the
31board to increase that rate of state assessment for clean water
32by future resolution as provided in subsection 3, paragraph “a”,
33subparagraph (2).
34c. A state assessment for clean water shall not be effective
35if the state assessment exceeds the assessment for direct use.
-30- 14. a. If a majority of voters approve the first question to
2increase the rate of the assessment for direct use as described
3in subsection 3, paragraph “a”, subparagraph (1), twenty-five
4cents shall be imposed on each head of sheep sold by a producer
5as effectuated by the board pursuant to section 182.12.
6b. If a majority of voters also approve increasing the
7rate of the state assessment for clean water as described in
8subsection 3, paragraph “b”, subparagraph (1), the increased
9rate shall be imposed on each head of sheep sold by a producer
10as effectuated by the board pursuant to section 182.12.
115. a. If a majority of voters approve both the first and
12second questions to increase the rate of the assessment for
13direct use under subsection 3, paragraph “a”, subparagraphs (1)
14and (2), all of the following apply:
15a. (1) Twenty-five The rate of the assessment for direct use
16shall equal twenty-five cents shall be imposed on each head of
17sheep sold by a producer as effectuated by the board pursuant
18to section 182.12.
19b. (2) The board may adopt one or more resolutions to
20further impose an increased rate of assessment rate for direct
21use.
22b. If a majority of voters also approve increasing the
23rate of state assessment for clean water as described in
24subsection 3, paragraph “b”, subparagraphs (1) and (2), all of
25the following shall apply:
26(1) The rate of the state assessment for clean water shall
27equal the increase described in subsection 3, paragraph “b”,
28subparagraph (1), imposed on each head of sheep sold by a
29producer.
30(2) The board may adopt one or more resolutions to further
31impose an increased rate of state assessment for clean water
32so long as the rate does not exceed the rate of the assessment
33for direct use.
34c. The increased assessment rate of the assessment for
35direct use or the increased rate of the state assessment for
-31-1clean water shall be imposed on each head of sheep sold by
2a producer as effectuated by the board pursuant to section
3182.12. The board shall comply with all of the following:
4(1) The board must wait three or more years from the
5effective date of the previous action imposing an increase in
6the rate of the assessment for direct use in order to adopt
7a resolution. For the first increase, the effective date is
8the date of the special referendum to increase the rate of
9the assessment. For any subsequent increase in the rate of
10assessment, the effective date is the date that the board last
11adopted a resolution imposing an increased rate as provided in
12this paragraph “b” subsection.
13(2) The board must wait three or more years from the
14effective date of the previous action imposing an increase in
15the rate of the state assessment for clean water in order to
16adopt a resolution. For the first increase, the effective date
17is the date of the special referendum to increase the rate
18of the state assessment for clean water. For any subsequent
19increase, the effective date is the date that the board last
20adopted a resolution imposing an increased rate as provided in
21this subsection.
22(2) (3) The board shall not adopt a resolution until it
23provides notice to producers of the proposed increase in the
24assessment for direct use or the state assessment for clean
25water and an opportunity for producers to submit written or
26oral comments to the board regarding the proposed increase.
27The board may provide notice by publication in the same manner
28as provided in section 182.3, publication on its internet
29site, mail bearing a United States postal service postmark,
30electronic transmission, or hand-delivery.
31(3) (4) (a) The An increase in the assessment rate of the
32assessment for direct use imposed by a resolution adopted by
33the board must shall equal five cents. However, the assessment
34 rate of the assessment for direct use imposed by a resolution
35of the board shall not equal more than fifty cents.
-32- 1(b) An increase in the rate of the state assessment for
2clean water imposed by resolution adopted by the board shall
3equal five cents. However, the rate of the state assessment
4for clean water imposed by resolution of the board shall not
5equal more than fifty cents.
66. a. If a majority of voters do not authorize increasing
7the rate of the assessment rate for direct use pursuant to a
8special referendum conducted pursuant to under this section,
9the assessment rate for the assessment for direct use shall be
10the same as provided in subsection 1, paragraph “a”.
11b. If a majority of voters do not authorize increasing the
12rate of the assessment for direct use pursuant to a special
13referendum conducted under this section, the rate for the state
14assessment for clean water shall be the same as provided in
15subsection 1, paragraph “b”.
16b. 7. Not more than one special referendum to establish an
17assessment for direct use or to establish a state assessment
18for clean water shall be conducted pursuant to this section.
19 Sec. 30. Section 182.14, Code 2017, is amended to read as
20follows:
21182.14 Assessment Assessments.
221. An assessment for direct use or a state assessment for
23clean water provided in this chapter shall be imposed on the
24producer as follows:
25a. If the producer sells wool or sheep to the first
26purchaser within this state, the following shall apply:
27(1) If the sale occurs at a concentration point, the
28assessment shall be imposed at the time of delivery. The first
29purchaser shall deduct the assessment or state assessment from
30the price paid to the producer at the time of sale.
31(2) If the sale does not occur at a concentration point,
32the producer shall deduct the assessment or state assessment
33 from the amount received from the sale and shall forward the
34amount deducted to the board within thirty days following each
35calendar quarter.
-33- 1b. If the producer sells, ships, or otherwise disposes of
2wool or sheep to any person outside this state, the producer
3shall deduct the assessment or state assessment from the amount
4received from the sale and shall forward the amount deducted
5to the board.
62. The assessment for direct use or the state assessment
7for clean water imposed by this section shall be remitted to
8the board not later than thirty days following each calendar
9quarter during which the assessment amount or state assessment
10amount was deducted.
11 Sec. 31. Section 182.15, subsection 1, paragraph e, Code
122017, is amended to read as follows:
13e. The rate of withholding and the total amount of the
14assessment for direct use and the state assessment for
15clean water withheld. The board may require the invoice to
16separately indicate the amount withheld for the assessment for
17direct use and the state assessment for clean water.
18 Sec. 32. Section 182.16, Code 2017, is amended to read as
19follows:
20182.16 Deposit and disbursement Administration of funds
21 moneys.
221. The board shall deposit amounts moneys collected from the
23assessment for direct use imposed pursuant to section 182.14 in
24an account established pursuant to section 182.12. Expenses
25and disbursements incurred and made pursuant to this chapter
26shall be made by voucher, draft, or check bearing the signature
27of a person designated by majority vote of the board.
282. a. The board may deposit moneys collected from the state
29assessment for clean water in a qualified financial institution
30until transferred to the clean water fund created in section
31466B.51.
32b. If the state assessment for clean water is terminated as
33provided in section 182.4, the remaining moneys collected from
34that state assessment shall be immediately transferred to the
35clean water fund.
-34-1 Sec. 33. Section 182.17, Code 2017, is amended to read as
2follows:
3182.17 Refunds.
41. a. A producer who has paid the assessment for direct use
5 may, by application in writing to the board, secure a refund of
6all or part of the amount paid to the board.
7b. A producer who has paid the state assessment for clean
8water to the board may, by application in writing to the board,
9secure a refund of all or part of the amount paid to the board.
10The board shall transmit any approved application for a refund
11to the division of soil conservation and water quality of the
12department of agriculture and land stewardship for payment.
132. The refund shall be payable only when the application has
14been made to the board within sixty days after the deduction
15has been made by the producer or within sixty days after the
16remittance has been made by the first purchaser.
173. Each application for refund by a producer shall have
18an attached proof indicating that the assessment for direct
19use was paid. If a state assessment for clean water is
20imposed, the attached proof shall also indicate that the state
21assessment has also been paid. The attached proof of the
22assessment paid may be in the form of a duplicate or certified
23copy of the purchase invoice by the purchaser.
244. The application shall allow the applicant to elect
25whether the refund is for the assessment for direct use or the
26state assessment for clean water or both. The board shall not
27approve an application unless the application indicates the
28election.
29 Sec. 34. Section 182.18, Code 2017, is amended to read as
30follows:
31182.18 Use of moneys.
321. Moneys from the assessment for direct use collected
33under this chapter are subject to audit by the auditor of state
34and shall be used by the Iowa sheep and wool promotion board
35first for the payment of collection and refund expenses, second
-35-1for payment of the costs and expenses arising in connection
2with conducting referendums, third for the purposes identified
3in section 182.11, and fourth for the cost of audits for
4the auditor of state. Moneys of the board remaining after
5a special referendum is held at which a majority of the
6voters favor termination of the board and the assessment for
7direct use shall continue to be expended in accordance with
8this chapter until exhausted. The auditor of state may seek
9reimbursement for the cost of the audit.
102. Except as expressly provided in this chapter, moneys
11collected by the board from the state assessment for clean
12water shall not be used for any purpose other than to be
13transferred to the clean water fund created in section 466B.51.
142. 3. The board shall not engage in any political activity,
15and it shall be a condition of any allocation of funds that
16any organization receiving funds shall not expend the funds on
17political activity or on any attempt to influence legislation.
18 Sec. 35. Section 182.22, Code 2017, is amended to read as
19follows:
20182.22 Purchasers outside Iowa.
21The secretary may enter into arrangements with first
22purchasers from outside Iowa for payment of the assessment for
23direct use and the state assessment for clean water.
24DIVISION IV
25IOWA PORK PRODUCERS COUNCIL
26IOWA PORK PRODUCERS ASSOCIATION
27 Sec. 36. Section 183A.1, subsection 1, Code 2017, is amended
28to read as follows:
291. “Assessment” means an excise tax on the sale of porcine
30animals as provided in this chapter which may include an
31assessment for direct use and a state assessment for clean
32water.
33 Sec. 37. Section 183A.1, Code 2017, is amended by adding the
34following new subsection:
35 NEW SUBSECTION. 4A. “National assessment” means an excise
-36-1tax on the sale of porcine animals imposed pursuant to the Pork
2Promotion Act.
3 Sec. 38. Section 183A.1, subsection 7, Code 2017, is amended
4to read as follows:
57. “Pork Promotion Act” means the federal Pork Promotion,
6Research, and Consumer Information Act of 1985, 7 U.S.C. §4801
7et seq.
8 Sec. 39. Section 183A.5, subsection 1, paragraph i, Code
92017, is amended to read as follows:
10i. Receive, administer, disburse and account for, in
11addition to the funds moneys received from the assessment for
12direct use and the state assessment for clean water provided in
13this chapter, other funds moneys voluntarily contributed to the
14council for the purpose of promoting the pork industry.
15 Sec. 40. Section 183A.5, Code 2017, is amended by adding the
16following new subsection:
17 NEW SUBSECTION. 4. The council shall cooperate with
18the division of soil conservation and water quality of the
19department of agriculture and land stewardship in doing all of
20the following:
21a. Transferring moneys collected from the state assessment
22imposed as a result of a special referendum conducted pursuant
23to section 183A.9 to the clean water fund created in section
24466B.51.
25b. Being reimbursed for reasonable expenses incurred in
26conducting an initial or special referendum to establish,
27continue, or terminate a state assessment for clean water.
28 Sec. 41. Section 183A.6, Code 2017, is amended to read as
29follows:
30183A.6 Assessment Assessments.
311. The council shall make impose an assessment for direct
32use of not less than point zero zero two nor more than point
33zero zero three of the gross sale price of all porcine animals.
34The assessment for direct use shall be point zero zero two five
35of the gross sale price of porcine animals until consent to
-37-1an assessment has been given through the initial referendum
2referred to in this chapter. After approval of the initial
3referendum, the rate of assessment for direct use shall be
4determined established by the council.
52. a. If an assessment for direct use is imposed under
6subsection 1, the council shall impose a state assessment for
7clean water if approved at a special referendum conducted
8pursuant to section 183A.9.
9b. If a national assessment is imposed under section
10183A.9A, the Iowa pork producers association shall impose a
11state assessment for clean water if approved at a special
12referendum conducted pursuant to section 183A.9.
133. a. The assessment for direct use and the state
14assessment for clean water shall be made at the time of
15delivery of the porcine animals for sale, and shall be deducted
16by the first purchaser from the price paid to the seller. The
17first purchaser, at the time of sale, shall make and deliver
18to the seller an invoice for each purchase showing the names
19and addresses of the seller and the first purchaser, the number
20and kind of porcine animals sold, the date of sale, and the
21assessment for direct use, and any state assessment for clean
22water, made on the sale. The council may require the invoice
23to separately indicate the amount withheld for the assessment
24for direct use and the state assessment for clean water.
25b. Assessments An assessment for direct use and the state
26assessment for clean water shall be paid to the Iowa pork
27producers council or its designated agent by first purchasers
28at a time prescribed by the council, but not later than the
29last day of the month following the month in which the animals
30were purchased.
314. If a national assessment is imposed pursuant to section
32183A.9A, and a state assessment for clean water is imposed
33under section 183A.9, the Iowa pork producers association shall
34impose and collect the state assessment for clean water in
35the same manner as the assessment for direct use set forth in
-38-1subsection 3. However, the Iowa pork producers association may
2impose and collect the state assessment based on procedures for
3the national assessment as set forth in the pork promotion Act.
4The invoice may correspond to any invoice required by the pork
5promotion Act.
6 Sec. 42. Section 183A.7, Code 2017, is amended to read as
7follows:
8183A.7 Administration of moneys — appropriation.
91. a. Assessments An assessment for direct use imposed
10under this chapter pursuant to section 183A.6 and paid to and
11collected by the Iowa pork producers council shall be deposited
12in the pork promotion fund which is established in the office
13of the treasurer of state. The department of administrative
14services shall transfer moneys from the pork promotion fund
15to the council for deposit into an account established by the
16council in a qualified financial institution. The department
17shall transfer the moneys as provided in a resolution adopted
18by the council. However, the department is only required to
19transfer moneys once during each day and only during hours when
20the offices of the state are open.
212. b. All moneys deposited in the pork promotion fund and
22transferred to the council as provided in this section are
23appropriated and shall be used for the administration of this
24chapter and for the payment of claims based upon obligations
25incurred in the performance of activities and functions set
26forth in this chapter.
273. c. From the moneys collected, deposited, and transferred
28to the council as provided in this chapter, the council shall
29first pay the costs of referendums held pursuant to this
30chapter. Of the moneys remaining, at least twenty-five percent
31shall be remitted to the national pork producers council and
32at least fifteen percent shall be remitted to the Iowa pork
33producers association, in the proportion the committee council
34 determines, for use by recipients in a manner not inconsistent
35with market development as defined in section 183A.1. Moneys
-39-1remaining shall be spent as found necessary by the council to
2further carry out the provisions and purposes of this chapter.
34. d. However, in In no event shall the total expenses
4exceed the total amount of moneys transferred from the pork
5promotion fund for use by the council.
62. a. Moneys collected from a state assessment for clean
7water by the council may be deposited in a qualified financial
8institution and shall be transferred to the clean water fund
9created in section 466B.51.
10b. If a national assessment is imposed pursuant to section
11183A.9A, moneys from the state assessment for clean water
12collected by the Iowa pork producers association shall be
13transferred to the clean water fund created in section 466B.51.
14c. The Iowa pork producers association shall maintain
15separate accounts for moneys collected from the national
16assessment and the state assessment for clean water.
17d. The Iowa pork producers association shall adopt rules
18as necessary to administer this subsection and other sections
19in this chapter which directly or indirectly relate to this
20subsection.
21 Sec. 43. Section 183A.8, Code 2017, is amended to read as
22follows:
23183A.8 Refund of assessment assessments.
241. A producer from whom the an assessment for direct use or
25a state assessment for clean water has been deducted, upon is
26entitled to receive a refund upon filing a written application
27filed with the council within thirty days after its collection,
28shall have that amount refunded by the council.
292. a. Application If an assessment for direct use or
30an assessment for direct use and any state assessment for
31clean water are imposed, application forms shall be given by
32the council to each first purchaser when requested and the
33first purchaser shall make the applications available to any
34producer.
35b. Each application for a refund by a producer shall have
-40-1attached a proof of assessment for direct use deducted. If
2the assessment for direct use and state assessment for clean
3water are imposed, the attached proof shall indicate the amount
4of the assessment and the amount of the state assessment
5deducted. The proof of the assessment for direct use and any
6state assessment for clean water deducted shall be in the form
7of the original or a copy of the purchase invoice by the first
8purchaser. The application shall allow the applicant to elect
9whether the refund is for the assessment for direct use or the
10state assessment for clean water or both. The council shall
11not approve an application unless the application indicates the
12election.
133. The council shall have no not more than thirty days from
14the date the application for a refund is received to remit do
15all of the following:
16a. Remitthe amount of the refund of an assessment for
17direct use to the producer.
18b. Submit an approved application for the refund of a state
19assessment for clean water to the division of soil conservation
20and water quality of the department of agriculture and land
21stewardship which shall remit the amount of the refund to the
22producer.
234. If a national assessment is established pursuant to
24section 183A.9A and a state assessment for clean water is
25established pursuant to section 183A.9, the producer shall file
26a written application with the Iowa pork producers association
27in lieu of the council in the same manner as provided in
28subsection 1 and the Iowa pork producers association shall
29make applications available to first purchasers as provided in
30subsection 2. However, the Iowa pork producers association
31may provide for filing applications for a refund based on any
32applicable procedures set forth in the Pork Promotion Act. In
33any case, the Iowa pork producers association must transfer
34approved applications for refunds to the division of soil
35conservation and water quality of the department of agriculture
-41-1and land stewardship for payment to producers in the same
2manner as described in subsection 3.
3 Sec. 44. Section 183A.9, Code 2017, is amended to read as
4follows:
5183A.9 Referendum Initial and special referendums —
6assessments.
71. At a time designated by the council within eighteen
8months after the termination of the collection of assessments
9 the national assessment imposed under the Pork Promotion Act,
10the secretary shall conduct an initial referendum under to
11establish an Iowa pork producers council and an assessment for
12direct use. The referendum shall be conducted according to
13 administrative procedures prescribed adopted by the department
14of agriculture and land stewardship.
152. If an assessment for direct use is established and upon
16receipt of a request of ten percent or more of the number
17of producers eligible to vote, the secretary shall conduct a
18special referendum to determine whether producers favor the
19establishment of a state assessment for clean water. The
20special referendum shall be conducted in the same manner as
21an initial referendum conducted pursuant to subsection 1.
22The rate of the state assessment for clean water shall be
23established by the Iowa pork producers council not to exceed
24the rate of the assessment for direct use established pursuant
25to an initial referendum described in section 183A.6.
263. Upon receipt of a petition that otherwise complies with
27the requirements of subsection 2, the secretary may in lieu of
28conducting a special referendum include as part of the initial
29referendum a separate special question whether to establish a
30state assessment for clean water, if the secretary determines
31it to be cost-effective or the petition demands it.
322. 4. Upon signing a statement certifying to the secretary
33that the person is a bona fide producer as defined in this
34chapter, each producer is entitled to one vote in each initial
35or special referendum. The secretary shall determine the
-42-1qualification of producers under this section.
23. 5. The secretary shall count and tabulate the ballots
3filed during the initial or special referendum within thirty
4days of the close of the referendum. If from the tabulation
5the secretary determines that a majority of the total number
6of producers voting in the initial referendum favors the
7establishment of the assessment for direct use, the assessment
8provided for in the referendum shall be levied imposed. If
9from the tabulation the secretary determines that a majority of
10the total number of producers voting in the initial or special
11referendum favors the establishment of the state assessment
12for clean water, the state assessment shall be imposed. The
13ballots cast pursuant to this section constitute complete and
14conclusive evidence for use in determinations made by the
15secretary under this chapter.
164. 6. a. The secretary shall hold subsequent referendums
17 conduct a special referendum on request of receipt of a
18petition signed by ten percent or more of the number of
19producers eligible to vote, to determine whether the producers
20favor the termination or any of the following:
21(1) Thesuspension of the assessment for direct use.
22(2) The termination of the assessment for direct use and the
23state assessment for clean water, if established.
24b. The secretary shall suspend or terminate collection
25of the assessment for direct use within six months after the
26secretary determines that suspension or termination of the
27assessment for direct use is favored by a majority of the
28producers voting in the special referendum, and. The secretary
29 shall terminate the assessment for direct use in an orderly
30manner as soon as practicable after the determination.
317. a. The secretary shall conduct a special referendum on
32receipt of a petition of producers otherwise complying with the
33requirements in subsection 6 to conduct a special referendum to
34terminate the state assessment for clean water.
35b. Upon receipt of a petition that otherwise complies
-43-1with the requirements of subsection 6, the secretary shall
2include as part of the special referendum conducted under that
3subsection a separate special question whether to terminate
4the state assessment for clean water, if the secretary
5determines the inclusion of the separate special question is
6cost-effective or the petition demands inclusion.
78. The secretary shall terminate the state assessment for
8clean water in the same manner as provided in subsection 6,
9upon determining that the council is abolished, the assessment
10for direct use is not being collected, and the national
11assessment is not being collected.
12 Sec. 45. Section 183A.9A, Code 2017, is amended to read as
13follows:
14183A.9A Suspension during national order.
151. The terms of all voting members serving on the council on
16January 31, 1986, terminate at the time provided in subsection
172.
182. a. On the date of the commencement of the collection
19of assessments a national assessment under the Pork Promotion
20Act, the collection of the assessments assessment for direct
21use under section 183A.6 shall be suspended. The council shall
22continue to operate after suspension until all refunds are paid
23and all funds moneys remaining in the pork promotion fund, less
24a reserve for future refunds, are disbursed for the purposes
25enumerated in this chapter. Notwithstanding section 183A.7,
26the council need not retain a reserve for future referendums.
27Upon completion of these acts, the existence of the Iowa pork
28producers council is suspended. The secretary of agriculture
29 shall certify the suspension of the council as of a date
30certain to the Iowa pork producers council and the Iowa pork
31producers association. When the existence of the council is
32suspended, the terms of office of council members terminate.
33b. On the date of the commencement of the collection of
34the national assessment under the Pork Promotion Act, the Iowa
35pork producers association shall assume collection of the state
-44-1assessment for clean water under section 183A.9.
23. a. If the rate of the national assessment has changed,
3and upon receipt of a petition that otherwise complies
4with requirements for submitting a petition to suspend or
5terminate an assessment for direct use under section 183A.9,
6the secretary shall conduct a special referendum to determine
7whether to change the rate of the state assessment for
8clean water to a rate established by the Iowa pork producers
9association not to exceed the rate of the national assessment.
10b. Upon receipt of a petition that otherwise complies with
11requirements for submitting a petition to suspend or terminate
12an assessment for direct use under section 183A.9, the
13secretary shall include as part of a referendum to change the
14rate of the national assessment, a separate special question
15whether to change the rate of the state assessment for clean
16water not to exceed the change in the national assessment, if
17the secretary determines the inclusion of the special question
18complies with federal law and either it is cost-effective or
19the petition demands inclusion.
20c. If the national assessment is changed, and the secretary
21determines that a change in the state assessment for clean
22water is favored by a majority of the producers voting in a
23special referendum or separate special question as part of
24a referendum to change the rate of the national assessment,
25the rate of the state assessment shall be changed on a date
26determined by the secretary after consultation with the Iowa
27pork producers association but not later than six months
28after the date that the special referendum or referendum was
29conducted.
303. 4. On the date of the termination of the collection of
31assessments the national assessment under the Pork Promotion
32Act, the period of suspension of the assessments assessment
33for direct use under subsection 2 terminates. The secretary
34shall collect moneys from the assessments assessment for direct
35use under section 183A.6 and the state assessment for clean
-45-1water under section 183A.9 until this duty can be resumed by
2the reactivated council. The secretary shall deposit moneys
3collected from the assessment for direct use in the pork
4promotion fund. The secretary shall transfer moneys collected
5from the state assessment for clean water to the clean water
6fund created in section 466B.51.
74. 5. On the date of the termination of the collection of
8assessments the national assessment under the Pork Promotion
9Act, the period of suspension of the council under subsection 2
10terminates. Within sixty days from this date, the secretary
11shall appoint voting members to the council. For purposes of
12section 183A.3, a voting member so appointed is deemed not to
13have served a previous consecutive term. The terms of office
14of voting members of the initial reactivated council shall be
15determined by lot, but members from the same district shall
16not serve the same terms. As nearly as possible one-third of
17the voting members shall serve for one year, one-third of the
18voting members shall serve for two years, and one-third of the
19voting members shall serve for three years. Subsequent voting
20members shall be appointed pursuant to section 183A.2.
215. 6. The secretary shall call the first meeting of the
22reactivated council. Upon reactivation, the council shall
23reimburse the secretary for expenses incurred in carrying out
24the duties provided in this section.
257. The state recognizes the Iowa pork producers association
26as a state association under the Pork Promotion Act. For
27purposes of this chapter, “association” shall include a
28successor state association or other state association that
29administers the national assessment in Iowa.
308. If a state assessment for clean water is established
31or continued pursuant to sections 183A.9 and 183A.9A, the
32Iowa pork producers association shall administer the state
33assessment for the period that the Pork Promotion Act is in
34effect, unless the state assessment is terminated under section
35183A.9.
-46- 19. The Iowa pork producers association shall cooperate with
2the division of soil conservation and water quality of the
3department of agriculture and land stewardship in doing all of
4the following:
5a. Transferring moneys from the state assessment for clean
6water to the clean water fund created in section 466B.51.
7b. Being reimbursed for reasonable expenses incurred in
8conducting an initial or special referendum to establish,
9continue, or terminate a state assessment for clean water.
10DIVISION V
11IOWA EGG COUNCIL
12 Sec. 46. Section 184.1, subsection 1, Code 2017, is amended
13to read as follows:
141. “Assessment” means an excise tax on the sale of eggs as
15provided in this chapter which may include an assessment for
16direct use and a state assessment for clean water.
17 Sec. 47. Section 184.2, Code 2017, is amended to read as
18follows:
19184.2 Establishment of Iowa egg council and assessment
20 assessments.
211. The secretary shall call and the department shall
22conduct a an initial referendum upon the department’s receipt
23of a petition for direct use which is signed by at least
24twenty producers requesting a an initial referendum to
25determine whether to establish an Iowa egg council and to
26impose establish an assessment for direct use to be imposed as
27provided in section 184.3.
282. a. If the council has been established, the secretary
29shall call and the department shall conduct a special
30referendum upon the department’s receipt of a petition that
31otherwise complies with subsection 1 calling for a state
32assessment for clean water to be imposed as provided in section
33184.3.
34b. Upon receipt of a petition that otherwise complies with
35subsection 1, the secretary may in lieu of conducting a special
-47-1referendum include as part of the initial referendum a separate
2special question whether to establish a state assessment for
3clean water to be imposed as provided in section 184.3, if the
4secretary determines the inclusion of the special question is
5cost-effective or the petition demands inclusion.
63. The initial referendum or a special referendum described
7in this section shall be conducted within sixty days following
8receipt of the petition. The petitioners shall guarantee
9payment of the cost of the initial referendum or special
10referendum by providing evidence of financial security as
11required by the department.
122. 4. The department shall give notice of the initial
13 referendum on the question whether to establish a council and
14to impose an assessment or special referendum described in this
15section by publishing the notice for a period of not less than
16five days in at least one newspaper of general circulation in
17the state. The notice shall state the voting places, period
18of time for voting, and other information deemed necessary by
19the department. A An initial referendum or special referendum
20 shall not be commenced until five days after the last date of
21publication.
223. a. 5. Each producer who signs a statement certifying
23that the producer is a bona fide producer shall be an eligible
24voter under this section. An eligible voter is entitled to
25cast one vote in each initial referendum or special referendum
26 conducted under this section.
27b. 6. At the close of the initial referendum or special
28referendum, the secretary shall count and tabulate the ballots
29cast.
30(1) 7. a. If a majority of eligible voters approve
31establishing an Iowa egg a council and imposing an assessment
32for direct use, a the council and the assessment shall be
33established, and an the assessment shall be imposed, commencing
34not more than sixty days following the initial referendum as
35determined by the council and shall continue until eligible
-48-1voters voting in a special referendum held conducted pursuant
2to section 184.5 vote to abolish the council and terminate the
3imposition of the assessment for direct use.
4b. If a majority of eligible voters approve establishing
5a state assessment for clean water, pursuant to a special
6referendum, the state assessment shall be imposed commencing
7not more than sixty days following the special referendum as
8determined by the council. If a majority of eligible voters
9approve establishing a state assessment for clean water, as
10part of an initial referendum the state assessment shall be
11imposed in the same manner described in paragraph “a”. The
12state assessment for clean water shall continue until eligible
13voters voting in a special referendum conducted pursuant to
14section 184.5 vote to do any of the following:
15(1) Abolish the council and terminate the assessment for
16direct use.
17(2) Terminate the state assessment for clean water.
18(2) 8. a. If a majority of the voters do not approve
19establishing the council and imposing the assessment for direct
20use, the council and the assessment shall not be established,
21 and an the assessment shall not be imposed, until another
22initial referendum is held conducted under this chapter and a
23majority of the eligible voters approve establishing a council
24and imposing the an assessment for direct use. If a an initial
25 referendum should fail, another initial referendum to decide
26whether to establish a council and an assessment shall not be
27held conducted within at least one hundred eighty days from the
28date that the last initial referendum was conducted.
29b. If a majority of the voters do not approve establishing
30a state assessment for clean water, the state assessment
31shall not be established until the question is approved at
32a special referendum or as part of an initial referendum
33conducted pursuant to this section. If a special referendum,
34or an initial referendum which includes the question whether
35to establish a state assessment for clean water, should fail,
-49-1the special referendum or an initial referendum which includes
2the special question shall not be conducted for at least one
3hundred eighty days from the date that the last such special
4referendum or initial referendum was conducted.
54. 9. Immediately after passage of the question to
6establish a council and assessment for direct use at the an
7initial referendum, the secretary shall appoint seven members
8to the council in accordance with section 184.6 based on
9nominations made by the Iowa poultry association. The Iowa
10poultry association shall nominate and the secretary shall
11appoint two members representing large producers, two members
12representing medium producers, and three members representing
13small producers. The department, in consultation with the Iowa
14poultry association, shall determine initial classifications
15for small, medium, and large producers. The secretary shall
16complete the appointments within thirty days following passage
17of the question at the initial referendum.
18 Sec. 48. Section 184.3, Code 2017, is amended to read as
19follows:
20184.3 Assessment Assessments and state assessments.
211. a. Except as provided in paragraph “b” subsection 4,
22an assessment for direct use of two and one-half cents is
23imposed on each thirty dozen eggs produced in this state. The
24assessment for direct use shall be imposed on a producer at the
25time of delivery to a purchaser who shall deduct the assessment
26for direct use from the price paid to a producer at the time of
27sale.
282. A state assessment for clean water is imposed and
29deducted in the same manner as the assessment for direct use
30provided in subsection 1. The rate of the state assessment for
31clean water shall be established by the council at a rate not
32to exceed the rate of assessment for direct use as provided in
33subsection 1.
343. The assessment for direct use and the state assessment
35for clean water shall not be refundable. The assessment is for
-50-1direct use and state assessment for clean water are due to be
2paid to the council within thirty days following each calendar
3quarter, as provided by the council.
4b. 4. a. Upon request of the council, the secretary shall
5call a special referendum for producers to vote on whether to
6authorize an increase in the rate of assessment for direct use
7 to an amount that is more than two and one-half cents imposed
8on each thirty dozen eggs produced in this state.
9b. Upon request of the council, the secretary shall call
10a special referendum for producers to vote on whether to
11authorize an increase in the state assessment for clean water
12as established by the council not to exceed the rate of the
13assessment for direct use described in paragraph “a”. The
14secretary shall include as part of a special referendum to
15increase the rate of the assessment for direct use, a separate
16special question whether to increase the rate of the state
17assessment for clean water. If the secretary determines the
18inclusion of the special question is cost-effective or the
19request demands inclusion.
205. a. Notice of a special referendum described in
21subsection 4 shall be given and the special referendum shall be
22conducted in the manner provided in section 184.5.
23b. If a majority of the producers voting approves the an
24 increase in the rate of the assessment for direct use, the
25council may increase the assessment for to the amount rate
26 approved. However, the The rate of the assessment for direct
27use shall not exceed fifteen cents imposed on each thirty dozen
28eggs produced in this state. If a majority of the producers
29voting approves an increase in the state assessment for
30clean water, the council shall increase the rate of the state
31assessment to a rate not to exceed the rate approved for the
32assessment for direct use.
332. 6. a. If the producer sells eggs to a purchaser outside
34the state of Iowa, the producer shall deduct the assessment for
35direct use from the amount received from the sale and shall
-51-1forward the amount deducted to the council within thirty days
2following each calendar quarter.
3b. If the producer sells eggs to a purchaser outside the
4state of Iowa, the producer shall deduct the state assessment
5for clean water in the same manner as described in paragraph
6“a”.
77. If the producer and processor are the same person, then
8that person shall pay the assessment for direct use or the
9state assessment for clean water to the council within thirty
10days following each calendar quarter.
113. 8. The council may charge interest on any amount of the
12 an assessment for direct use or a state assessment for clean
13water that is delinquent. The rate of interest shall not be
14more than the current rate published in the Iowa administrative
15bulletin by the department of revenue pursuant to section
16421.7. The interest amount shall be computed from the date
17the assessment for direct use or a state assessment for clean
18water is delinquent, unless the council designates a later
19date. The interest amount shall accrue for each month in which
20there is delinquency calculated as provided in section 421.7,
21and counting each fraction of a month as an entire month. The
22interest amount due shall become a part of the assessment for
23direct use or a state assessment for clean water due.
24 Sec. 49. Section 184.4, subsection 1, paragraph e, Code
252017, is amended to read as follows:
26e. The rate of withholding and the total amount of
27assessment for direct use and the state assessment for clean
28water withheld. The council may require the invoice to
29separately indicate the amount withheld for the assessment for
30direct use and for the state assessment for clean water.
31 Sec. 50. Section 184.5, Code 2017, is amended to read as
32follows:
33184.5 Referendums Special referendum conducted to abolish
34the council and terminate imposition of the assessment or state
35assessment.
-52- 11. A special referendum may be called to abolish the council
2and terminate the imposition of the assessment for direct use
3established pursuant to section 184.3 and any state assessment
4for clean water established pursuant to that section.
52. a. A special referendum may be called to terminate
6the state assessment for clean water established pursuant to
7section 184.3.
8b. The secretary shall include as part of a special
9referendum to abolish the council and terminate the assessment
10for direct use described in subsection 1, a separate special
11question whether to terminate the state assessment for clean
12water, if the secretary determines the inclusion of the special
13question is cost-effective or the request demands inclusion.
143. The secretary shall call, and the department shall
15conduct, the a special referendum described in subsection
161 upon the department’s receipt of a petition requesting
17the special referendum. The petition must be signed by at
18least twenty eligible voters or fifty percent of all eligible
19voters, whichever is greater. In order to be an eligible voter
20under this section, a producer must have paid an assessment
21for direct use established under section 184.3, and a state
22assessment for clean water if established under that section,
23 in the year of the special referendum. The special referendum
24shall be conducted within sixty days following receipt of the
25petition. The petitioners shall guarantee payment of the cost
26of the special referendum by providing evidence of financial
27security as required by the department.
282. 4. The following procedures shall apply to a special
29 referendum conducted pursuant to this section:
30a. The department shall publish a notice of the special
31 referendum for a period of not less than five days in at least
32one newspaper of general circulation in the state. The notice
33shall state the voting places, period of time for voting,
34and other information deemed necessary by the department. A
35special referendum shall not be commenced until five days after
-53-1the last date of publication.
2b. Upon signing a statement certifying to the secretary that
3the producer is an eligible voter, a producer is entitled to
4one vote in each special referendum conducted pursuant to this
5section. The department may conduct the special referendum
6by mail, electronic means, or a general meeting of eligible
7voters. The department shall conduct the special referendum
8and count and tabulate the ballots filed during the special
9 referendum within thirty days following the close of the
10special referendum.
11(1) c. If a majority of the total number of eligible
12voters who vote in the special referendum approve approves
13 the continuation of the council and the imposition of the
14 assessment for direct use, the council and the imposition of
15the assessment shall continue as provided in this chapter.
16d. If a majority of eligible voters who vote in the special
17referendum approves the continuation of the state assessment
18for clean water, the imposition of the state assessment shall
19continue for the same period as the assessment for direct use.
20(2) e. If a majority of the total number of eligible
21voters who vote in the special referendum held pursuant to
22this section do does not approve continuing the council and
23the imposition of the assessment for direct use, the secretary
24shall terminate the collection of the assessment for direct use
25established pursuant to section 184.3 and the state assessment
26for clean water if established pursuant to that section, on
27the first day of the year for which the referendum was to
28continue. The secretary shall terminate the activities of the
29council in an orderly manner as soon as practicable after the
30determination is made. An additional initial referendum may be
31held as provided in conducted under section 184.2. However,
32the subsequent additional referendum shall not be held within
33 conducted for at least one hundred eighty days after the date
34that the last such special referendum was conducted.
35f. If a majority of the total number of eligible voters
-54-1who vote in the special referendum does not approve continuing
2the state assessment for clean water, the secretary shall
3terminate the state assessment in an orderly manner as soon as
4practicable after the determination is made. An additional
5special referendum or an additional initial referendum that
6includes a separate special question to establish the state
7assessment for clean water may be conducted under section
8184.2. However, the subsequent special referendum or
9initial referendum shall not be conducted for at least one
10hundred eighty days after the date that the last such special
11referendum or initial referendum was conducted.
12 Sec. 51. Section 184.10, subsection 4, Code 2017, is amended
13to read as follows:
144. Enter into arrangements for the collection of the
15assessment for direct use and any state assessment for clean
16water.
17 Sec. 52. Section 184.10, Code 2017, is amended by adding the
18following new subsection:
19 NEW SUBSECTION. 8. Cooperate with the division of soil
20conservation and water quality of the department of agriculture
21and land stewardship in doing all of the following:
22a. Transferring moneys from the state assessment for clean
23water to the clean water fund created in section 466B.51.
24b. Being reimbursed for reasonable expenses incurred in
25conducting an initial or special referendum to establish,
26continue, or terminate a state assessment for clean water.
27 Sec. 53. Section 184.13, Code 2017, is amended to read as
28follows:
29184.13 Administration of moneys.
301. Subject to the provisions of section 184.3, the
31assessment imposed by this chapter for direct use established
32pursuant to section 184.3, and the state assessment for
33clean water if established pursuant to that section, shall
34be remitted by the purchaser to the council not later than
35thirty days following each calendar quarter during which the
-55-1assessment was collected.
22. Amounts Moneys collected from the assessment for direct
3use shall be deposited in the office of the treasurer of
4state in a separate fund to be known as the Iowa egg fund.
5The department of administrative services shall transfer
6moneys from the fund to the council for deposit into an
7account established by the council in a qualified financial
8institution. The department shall transfer the moneys as
9provided in a resolution adopted by the council. However, the
10department is only required to transfer moneys once during each
11day and only during hours when the offices of the state are
12open.
133. Moneys collected from a state assessment for clean
14water by the council may be deposited in a qualified financial
15institution and shall be transferred to the clean water fund
16created in section 466B.51.
17 Sec. 54. Section 184.14, Code 2017, is amended to read as
18follows:
19184.14 Use of moneys — appropriation — audit.
201. All moneys deposited in the Iowa egg fund and transferred
21to the council as provided in section 184.13 are appropriated
22and shall be used for the administration of this chapter and
23for the payment of claims based upon obligations incurred in
24the performance of activities and functions set forth in this
25chapter.
262. a. Moneys collected, deposited in the fund, and
27transferred to the council as provided in this chapter are
28subject to audit by the auditor of state. The auditor of state
29may seek reimbursement for the cost of the audit. The moneys
30transferred to the council shall be used by the council first
31for the payment of collection expenses, second for payment of
32the costs and expenses arising in connection with conducting
33referendums, third to perform the functions and carry out the
34duties of the council as provided in this chapter, and fourth
35for the cost of audits by the auditor of state.
-56- 1b. Moneys The moneys remaining after the council is
2abolished and the imposition of an the assessment for direct
3use imposed pursuant to section 184.3 is terminated pursuant to
4a special referendum conducted pursuant to section 184.5 shall
5continue to be expended in accordance with this chapter until
6exhausted.
73. If the council is abolished and the assessment for direct
8use is terminated pursuant to a special referendum conducted
9under section 184.5, remaining moneys collected from the state
10assessment for clean water shall be transferred to the clean
11water fund created in section 466B.51. If the state assessment
12for clean water is terminated pursuant to a special referendum
13conducted under that section, remaining moneys collected from
14the state assessment shall be transferred to the clean water
15fund created in section 466B.51.
164. Except as expressly provided in this chapter, moneys
17collected from a state assessment for clean water shall not be
18used for any purpose other than to be transferred to the clean
19water fund created in section 466B.51.
20 Sec. 55. Section 184.18, Code 2017, is amended to read as
21follows:
22184.18 Purchasers outside Iowa.
23The secretary may enter into arrangements with purchasers
24from outside Iowa for payment of the assessment for direct use
25and the state assessment for clean water.
26DIVISION VI
27IOWA TURKEY MARKETING COUNCIL
28 Sec. 56. Section 184A.1, Code 2017, is amended by adding the
29following new subsection:
30 NEW SUBSECTION. 1A. “Assessment” means an excise tax
31imposed on the sale of turkeys which may include an assessment
32for direct use and a state assessment for clean water.
33 Sec. 57. Section 184A.1A, Code 2017, is amended to read as
34follows:
35184A.1A Referendum conducted to establish an Iowa turkey
-57-1marketing council and impose an assessment Referendums and
2assessments.
31. The department shall call and conduct a an initial
4 referendum upon the department’s receipt of a petition which
5is signed by at least twenty eligible voters requesting a
6 an initial referendum to determine whether to establish an
7Iowa turkey marketing council as provided in section 184A.1B
8and impose establish an assessment for direct use imposed as
9provided in section 184A.2.
102. If a council is established, and upon receipt of a
11petition that otherwise complies with the requirements of
12subsection 1, the department shall call and conduct a special
13referendum to establish a state assessment for clean water as
14provided in section 184A.2.
153. Upon receipt of a petition that otherwise complies with
16the requirements of subsection 1, the secretary shall include
17as part of the initial referendum a separate special question
18whether to establish a state assessment for clean water
19described in subsection 2, if the secretary determines the
20inclusion of the separate special question is cost-effective or
21the petition demands inclusion.
224. In order to be an eligible voter under this section,
23a petitioner must be a qualified producer. The initial or
24special referendum shall be conducted by election within sixty
25days following receipt of the petition. The petitioners shall
26guarantee payment of the cost of the referendum by providing
27evidence of financial security as required by the department.
282. 5. The department shall give notice of the an initial
29 referendum on the question whether to establish a council and
30to impose an assessment or special referendum by publishing
31the notice for a period of not less than five days in at least
32one newspaper of general circulation in the state, and for
33a similar period in other newspapers as prescribed by the
34department. The notice shall state the voting places, period
35of time for voting, the manner of voting, the amount of the
-58-1assessment for direct use or the amount of the state assessment
2for clean water, and other information deemed necessary by the
3department. A referendum or special referendum shall not be
4commenced until five days after the last date of publication.
53. a. 6. Each eligible voter who signs a statement
6certifying that the eligible voter is a qualified producer
7shall be an eligible voter under this section. An eligible
8voter is entitled to cast one vote in each initial referendum
9or special referendum conducted under this section. The
10department may conduct the initial referendum or special
11referendum by mail, electronic means, or a general meeting of
12eligible voters.
13b. 7. At the close of the initial referendum or special
14referendum, the department shall count and tabulate the ballots
15cast.
16(1) 8. a. If a majority of eligible voters who vote in
17the an initial referendum approve establishing the council and
18imposing an assessment for direct use under section 184A.2, a
19council and the assessment shall be established, and an the
20 assessment shall be imposed commencing not more than sixty days
21following the initial referendum as determined by the council.
22The council and assessment for direct use shall continue for
23five years as provided in section 184A.12.
24b. If a majority of eligible voters who vote in a special
25referendum approve establishing a state assessment for clean
26water, the state assessment shall be imposed commencing not
27more than sixty days following the special referendum as
28determined by the council.
29(2) c. If a majority of eligible voters who vote in the an
30initial referendum do not approve establishing the council and
31imposing the an assessment for direct use, the council shall
32not be established and an assessment shall not be established
33and imposed until another initial referendum is held conducted
34 under this section and a majority of the eligible voters voting
35approve establishing a council and imposing the an assessment
-59- 1for direct use. If a an initial referendum should fail,
2another initial referendum shall not be held within conducted
3for at least one hundred eighty days from the date of the last
4such initial referendum.
5d. If a majority of the voters do not approve establishing
6a state assessment for clean water, the state assessment shall
7not be established and imposed until the question is approved
8at a special referendum or as part of an initial referendum
9conducted pursuant to this section. If a special referendum
10or an initial referendum which includes the question whether
11to establish a state assessment should fail, the special
12referendum or an initial referendum which includes the question
13shall not be conducted for at least one hundred eighty days
14from the date of the last such special referendum or initial
15referendum which included the separate special question.
164. 9. Within thirty days after approval at the initial
17 referendum to establish a council and to impose an assessment
18for direct use, the department shall organize the council as
19provided in section 184A.1B.
20 Sec. 58. Section 184A.1C, subsection 4, Code 2017, is
21amended to read as follows:
224. Enter into arrangements for the collection, and deposit,
23and use of the assessment for direct use or the collection,
24deposit, and transfer of the state assessment for clean water.
25 Sec. 59. Section 184A.1C, Code 2017, is amended by adding
26the following new subsection:
27 NEW SUBSECTION. 7. Cooperate with the division of soil
28conservation and water quality of the department of agriculture
29and land stewardship in doing all of the following:
30a. Transferring moneys collected from the state assessment
31for clean water to the clean water fund created in section
32466B.51.
33b. Being reimbursed for reasonable expenses incurred in
34conducting an initial or special referendum to establish,
35continue, or terminate a state assessment for clean water.
-60-1 Sec. 60. Section 184A.2, Code 2017, is amended to read as
2follows:
3184A.2 Assessment Assessments — direct use — clean water.
41. If an assessment for direct use or a state assessment for
5clean water is approved by a majority of the eligible voters
6voting at a an initial referendum or special referendum as
7provided in section 184A.1A or 184A.12, all of the following
8shall apply:
9a. The assessment for direct use or the state assessment
10for clean water shall be imposed on each turkey delivered for
11processing.
12b. The council shall establish a rate of the assessment for
13direct use and the state assessment for clean water for each
14turkey delivered for processing. The council may establish
15different rates based on attributes or characteristics of
16turkeys. However, a rate shall not be more than three cents
17for each turkey delivered for processing. The rate of the
18state assessment for clean water shall be established by the
19council at a rate not to exceed the assessment for direct use
20in effect when the referendum establishing the state assessment
21passes.
22c. The assessment for direct use or the state assessment
23for clean water shall be imposed on the producer and collected
24at the time of delivery of a turkey to the processor. The
25assessment for direct use and the state assessment for clean
26water shall be deducted by the processor at the time of
27delivery from the price paid to the producer at the time of the
28sale to the processor. A processor shall remit assessments
29 moneys collected from the assessment for direct use or the
30state assessment for clean water to the council on a monthly
31basis as provided by the council. The council shall deposit
32the remitted assessments moneys collected from the assessment
33for direct use in the Iowa turkey fund as provided in section
34184A.4. The council shall transmit moneys collected from
35the state assessment for clean water to the clean water fund
-61-1created in section 466B.51.
22. The council may enter into agreements with processors
3from outside this state for the payment of the assessment for
4direct use and the state assessment for clean water.
53. a. The council shall provide for a refund of an
6assessment for direct use, and of a state assessment for
7clean water if established, according to rules adopted by the
8council.
9b. The council shall publish and disseminate applications
10for refunds. An application shall allow the applicant to elect
11whether the refund is for the assessment for direct use or a
12state assessment for clean water or both. The council shall
13not approve an application unless the application indicates the
14election.
15c. The council shall transmit any approved application for a
16refund of the state assessment for clean water to the division
17of soil conservation and water quality of the department of
18agriculture and land stewardship which shall pay a refund to
19the producer in the same manner as the council pays a refund to
20the producer under paragraph “a”.
21 Sec. 61. Section 184A.3, Code 2017, is amended to read as
22follows:
23184A.3 Assessment documentation Assessments — documentation.
24A processor receiving turkeys for slaughter shall do all of
25the following:
261. At the time of payment to the producer, the processor
27shall sign and submit a receipt to the producer which includes
28the rate of the assessment for direct use imposed and the
29rate of the state assessment for clean water imposed and the
30amount of the assessment and state assessment for all turkeys
31delivered for processing.
322. Within a period established by rules adopted by the
33council, the processor shall regularly sign and submit to the
34council an invoice or other records required by the council to
35expedite collection of the assessment for direct use and the
-62-1state assessment for clean water. The council may require that
2the processor submit a separate invoice for each purchase. The
3invoice shall be legibly printed and shall not be altered. An
4invoice shall include all of the following:
5a. The name and address of the producer and the seller, if
6the seller’s name is different from the producer.
7b. The name and address of the processor.
8c. The number of turkeys sold.
9d. The date of the delivery.
103. The council may require the invoice to separately
11indicate the amount withheld for the assessment for direct use
12and the state assessment for clean water.
13 Sec. 62. Section 184A.4, Code 2017, is amended to read as
14follows:
15184A.4 Administration of moneys.
161. a. The assessments Moneys from the assessment for direct
17use collected by the council as provided in section 184A.2
18shall be deposited in the office of the treasurer of state in
19a special fund known as the Iowa turkey fund. The department
20of administrative services shall transfer moneys from the
21fund to the council for deposit into the turkey council
22account established by the council pursuant to this section.
23The department shall transfer the moneys as provided in a
24resolution adopted by the council. However, the department is
25only required to transfer moneys once during each day and only
26during hours when the offices of the state are open.
272. b. The council shall establish a turkey council
28account in a qualified financial institution. The council
29shall provide for the deposit of all of the following into the
30account:
31a. (1) The assessment for direct use collected, deposited
32in the Iowa turkey fund, and transferred to the council as
33provided in this section.
34b. (2) Moneys, other than assessments moneys collected from
35the state assessment for clean water, but including moneys in
-63-1the form of gifts, rents, royalties, or license fees received
2by the council pursuant to section 184A.1C.
32. Except as expressly provided in this chapter, moneys
4collected from the state assessment for clean water under this
5section shall not be used for any purpose other than to be
6transferred to the clean water fund created in section 466B.51.
7 Sec. 63. Section 184A.6, Code 2017, is amended to read as
8follows:
9184A.6 Use of moneys in the turkey council account.
101. All moneys deposited in the turkey council account
11pursuant to section 184A.4 shall be used by the council for
12purposes of administering this chapter.
132. The council shall expend moneys from deposited in the
14turkey council account first for the payment of expenses for
15the collection of assessments moneys from the assessment for
16direct use and the state assessment for clean water, second
17for the payment of expenses related to conducting a special
18 referendum as provided in conducted under section 184A.12,
19and third for the cost of performing audits by the auditor of
20state as required in section 184A.9. The council shall expend
21remaining moneys for market development, producer education,
22and the payment of refunds to producers as provided in this
23chapter.
24 Sec. 64. Section 184A.10, Code 2017, is amended to read as
25follows:
26184A.10 Referendum Referendums.
27Upon receipt of a petition signed by at least twenty-five
28producers requesting an initial referendum election to
29determine whether to impose the fee assessment for direct use
30 as provided in section 184A.2 the secretary shall call and
31conduct an initial referendum.
32 Sec. 65. Section 184A.12, Code 2017, is amended to read as
33follows:
34184A.12 Referendum Special referendum conducted to continue
35the council and the imposition of the assessment establishment
-64-1of assessments.
21. The council shall call for a special referendum to
3continue the council established pursuant to section 184A.1A,
4and to continue the assessment for direct use established
5pursuant to section 184A.2.
62. The council shall call for a special referendum to
7continue the state assessment for clean water if established
8pursuant to section 184A.1A. The council may include as
9part of the special referendum to continue the council and
10the assessment for direct use under subsection 1, a separate
11special question whether to continue the state assessment for
12clean water.
133. The council shall call and conduct the a special
14 referendum by election as provided in this section. The
15department shall oversee the conduct of the special referendum.
16The special referendum shall be conducted in the fifth year
17following the initial referendum establishing the council and
18the assessment for direct use as provided in section 184A.10.
192. 4. The following procedures shall apply to a special
20 referendum conducted pursuant to this section:
21a. The council shall publish a notice of the special
22 referendum for a period of not less than five days in at least
23one newspaper of general circulation in the state and for
24a similar period in other newspapers as prescribed by the
25council. The notice shall state the voting places, period of
26time for voting, manner of voting, and other information deemed
27necessary by the council. A referendum shall not be commenced
28until five days after the last date of publication.
29b. Upon signing a statement certifying to the council that
30a producer is an eligible voter, the producer is entitled to
31one vote in each special referendum conducted pursuant to
32this section. In order to be an eligible voter under this
33section, a producer must be a qualified producer who paid an
34 the assessment for direct use and the state assessment for
35clean water, if established, in the year in which the special
-65-1 referendum is held conducted. The council may conduct the
2special referendum by mail, electronic means, or a general
3meeting of eligible voters. The council shall conduct the
4special referendum and count and tabulate the ballots filed
5during the special referendum within thirty days following the
6close of the special referendum.
7(1) c. If a majority of eligible voters who vote in the
8special referendum approves the continuation of continuing the
9council and the imposition of the assessment for direct use,
10the council and the imposition of the assessment shall continue
11as provided in this chapter.
12d. If a majority of eligible voters who vote in the special
13referendum approves continuing the state assessment for clean
14water, the imposition of the state assessment shall continue
15for the same period as the assessment for direct use.
16(2) e. If a majority of eligible voters who vote in the
17special referendum does not approve continuing the council and
18the imposition of the assessment for direct use, the department
19shall terminate the collection of the assessment for direct
20use and the state assessment for clean water if established.
21The termination shall occur on the first day of the year for
22which the special referendum was to continue. The department
23shall terminate the activities of the council in an orderly
24manner as soon as practicable after the date that the special
25 referendum was conducted. A subsequent initial referendum may
26be held conducted as provided in section 184A.1A. However,
27the subsequent initial referendum shall not be held within
28 conducted for at least one hundred eighty days from the date of
29 that the last special referendum was conducted.
30f. If a majority of eligible voters who vote in the special
31referendum does not approve continuing the state assessment
32for clean water, the department shall terminate the state
33assessment in the same manner as described in paragraph “e”. A
34subsequent special referendum to establish a state assessment
35for clean water may be conducted as provided in section
-66-1184A.1A. However, the subsequent special referendum shall not
2be conducted for at least one hundred eighty days from the date
3that the last special referendum was conducted.
4 Sec. 66. Section 184A.12A, Code 2017, is amended to read as
5follows:
6184A.12A Referendum Special referendum conducted to abolish
7the council and terminate the imposition of the assessment
8 assessments.
91. A The department may call and conduct a special
10 referendum may be called to abolish the council established
11pursuant to sections section 184A.1A and 184A.1B, and, to
12terminate the imposition of the assessment for direct use
13 established pursuant to section 184A.2, and to terminate the
14state assessment for clean water established pursuant to
15section 184A.2.
162. a. The department shall call and conduct, as provided
17in subsection 3, a special referendum to terminate the state
18assessment for clean water established pursuant to section
19184A.2.
20b. The department shall include as part of a special
21referendum to continue the council and the state assessment for
22direct use conducted under subsection 1, a separate special
23question to continue the state assessment for clean water, if
24the department determines the inclusion of the special question
25is cost-effective or a petition described in subsection 3
26demands inclusion.
273. The department shall call and conduct the special
28 referendum upon the department’s receipt of a petition
29requesting the special referendum or the inclusion of a
30separate special question as described in this section. The
31petition must be signed by at least twenty eligible voters or
32fifty percent of all eligible voters, whichever is greater. In
33order to be an eligible voter under this section, a producer
34must be a qualified producer who paid an the assessment
35for direct use and the state assessment for clean water, if
-67-1established, in the year in which the special referendum is
2held conducted. The special referendum shall be conducted by
3election within sixty days following receipt of the petition.
4The petitioners shall guarantee payment of the cost of the
5special referendum by providing evidence of financial security
6as required by the department.
72. 4. The following procedures shall apply to a special
8 referendum conducted pursuant to this section:
9a. The department shall publish a notice of the special
10 referendum for a period of not less than five days in at least
11one newspaper of general circulation in the state and for
12a similar period in other newspapers as prescribed by the
13department. The notice shall state the voting places, period
14of time for voting, manner of voting, and other information
15deemed necessary by the department. A special referendum
16shall not be commenced until five days after the last date of
17publication.
18b. Upon signing a statement certifying to the department
19that a producer is an eligible voter, the producer is entitled
20to one vote in each special referendum conducted pursuant
21to this section. The department may conduct the special
22 referendum by mail, electronic means, or a general meeting of
23eligible voters. The department shall conduct the special
24 referendum and count and tabulate the ballots filed during the
25special referendum within thirty days following the close of
26the special referendum.
27(1) c. If a majority of eligible voters who vote in the
28special referendum approves the continuation of the council and
29the imposition of the assessment for direct use, the council
30and the imposition of the assessment shall continue as provided
31in this chapter.
32d. If a majority of eligible voters who vote in the special
33referendum approves the continuation of the state assessment
34for clean water, the state assessment shall continue for the
35same period as the assessment for direct use.
-68- 1(2) e. If a majority of eligible voters who vote in the
2special referendum does not approve continuing the council and
3the imposition of the assessment for direct use, the department
4shall terminate the collection of the assessment for direct use
5 on the first day of the year for which the special referendum
6was to continue. The department shall terminate the activities
7of the council in an orderly manner as soon as practicable
8after the special referendum. A subsequent initial referendum
9may be held conducted as provided in section 184A.1A. However,
10the subsequent initial referendum shall not be held within
11 conducted for at least one hundred eighty days from the date of
12 that the last special referendum was conducted.
13f. If a majority of eligible voters who vote in the special
14referendum does not approve continuing the state assessment
15for clean water, the department shall terminate the collection
16of the state assessment in the same manner as described in
17paragraph “e”. A subsequent special referendum to establish a
18state assessment for clean water may be called and conducted
19under section 184A.1A, or a separate special question to
20establish the state assessment and included as part of a
21subsequent initial referendum may be called and conducted under
22that section. However, the subsequent special referendum
23or subsequent initial referendum that includes the special
24question shall not be conducted for at least one hundred eighty
25days from the date that the last special referendum terminating
26the state assessment was conducted.
27DIVISION VII
28IOWA SOYBEAN ASSOCIATION
29 Sec. 67. Section 185.1, subsection 17, Code 2017, is amended
30to read as follows:
3117. “State assessment” or “assessment” means an excise tax
32on each bushel of soybeans marketed in this state which is
33imposed pursuant to a any of the following:
34a. A state assessment for direct use pursuant to a
35promotional order as provided in this chapter.
-69- 1b. A state assessment for clean water.
2 Sec. 68. Section 185.1A, Code 2017, is amended to read as
3follows:
4185.1A Recognition of Iowa soybean association.
51. The corporation known as the Iowa soybean association
6incorporated under the laws of this state shall be entitled
7to the benefits of this chapter by filing each year with the
8secretary a verified proof of its organization, the names
9of its officers, and any other information required by the
10secretary.
112. The Iowa soybean association is a qualified state soybean
12board for purposes of administering a national assessment.
13For purposes of this chapter, “association” shall include a
14successor qualified state soybean board or other entity that is
15recognized by federal law to administer the national assessment
16in Iowa.
17 Sec. 69. Section 185.2, Code 2017, is amended to read as
18follows:
19185.2 Petition for election Referendums.
201. Upon receipt of a petition signed by at least five
21hundred producers requesting an initial referendum election
22 to determine whether a promotional order shall be placed in
23effect, the secretary shall call an the initial referendum
24election to be conducted within sixty days following receipt
25of the petition. Producers shall vote by written ballot in
26the manner provided by this chapter for an initial referendum
27elections.
282. a. If a promotional order is placed into effect, and
29upon receipt of a petition that otherwise complies with the
30requirements of this section, the secretary shall conduct a
31special referendum to establish a state assessment for clean
32water. The special referendum shall be conducted in the same
33manner as an initial referendum described in subsection 1.
34b. Upon receipt of a petition that otherwise complies with
35the requirements of this section, the secretary shall include
-70-1as part of the initial referendum a separate special question
2whether to establish and impose a state assessment for clean
3water described in this section, if the secretary determines
4the inclusion of the special question is cost-effective or the
5petition demands inclusion.
6 Sec. 70. Section 185.11, Code 2017, is amended by adding the
7following new subsection:
8 NEW SUBSECTION. 5. Cooperate with the division of soil
9conservation and water quality of the department of agriculture
10and land stewardship in doing all of the following:
11a. Transferring moneys collected from the state assessment
12for clean water to the clean water fund created in section
13466B.51.
14b. Being reimbursed for reasonable expenses incurred in
15conducting an initial or special referendum to establish,
16continue, or terminate a state assessment for clean water.
17 Sec. 71. Section 185.13, subsection 4, Code 2017, is amended
18to read as follows:
194. Enter into arrangements for collection of the state
20assessment for direct use and any state assessment for clean
21water imposed on soybeans marketed in this state.
22 Sec. 72. Section 185.16, Code 2017, is amended to read as
23follows:
24185.16 Notice of referendum.
251. Notice of a referendum election to initiate or extend a
26promotional order shall be given by publication in a newspaper
27of general circulation in this state at least ten days prior
28to the date of the referendum and in any other reasonable
29manner as may be determined by the secretary for the initial
30referendum and by the board for extension of the promotional
31order.
322. Notice of a special referendum to establish or continue
33a state assessment for clean water shall be given in the same
34manner as described in subsection 1.
35 Sec. 73. Section 185.17, Code 2017, is amended to read as
-71-1follows:
2185.17 Contents of notice.
3The A notice of referendum described in section 185.16 shall
4set forth the period of time for voting, voting places and such
5other information as the secretary may deem necessary in an
6initial referendum or special referendum. The board shall make
7such determinations in any subsequent initial referendum or
8special referendum.
9 Sec. 74. Section 185.18, Code 2017, is amended to read as
10follows:
11185.18 Counting.
12At the close of a referendum voting period, the secretary
13shall count and tabulate the ballots cast during the referendum
14 period of the initial referendum or special referendum.
15 Sec. 75. Section 185.20, Code 2017, is amended to read as
16follows:
17185.20 Producers only to vote.
18Only producers are eligible to vote in an election for
19directors or a, an initial referendum election, or a special
20referendum, and only in the district in which they reside.
21A producer shall sign an affidavit at the time of voting
22certifying the producer’s eligibility to vote. Each qualified
23producer shall be entitled to one vote.
24 Sec. 76. Section 185.21, Code 2017, is amended to read as
25follows:
26185.21 Assessment State assessments — rates.
271. A state assessment which for direct use that is adopted
28 established upon the initiation of a promotional order shall
29be collected imposed during the effective period of the
30promotional order, and shall be of no force or effect upon
31termination of the promotional order.
322. a. The state assessment for direct use collected as part
33of a promotional order shall be paid into the soybean promotion
34fund established in section 185.26.
35b. The state assessment for clean water if established
-72-1pursuant to section 185.2 or continued pursuant to section
2185.25 shall be collected by the board and may be deposited
3in a qualified financial institution until transferred to the
4clean water fund created in section 466B.51.
53. The rate of the state assessment for direct use
6established as part of a promotional order shall be imposed as
7follows:
8a. If the national assessment is being collected, the rate
9of the state assessment for direct use shall be one-quarter of
10one percent of the net market price of the soybeans marketed
11in this state.
12b. If the national assessment is not being collected, the
13rate of the state assessment for direct use shall be one-half
14of one percent of the net market price of soybeans marketed in
15this state.
164. The rate of the state assessment for clean water shall
17be imposed as follows:
18a. If the national assessment is being collected, the rate
19of the state assessment for clean water shall be established
20by the board at a rate not to exceed the combined rate of the
21state assessment for direct use and the national assessment as
22described in subsection 3, paragraph “a”.
23b. If the national assessment is not being collected,
24the rate of the state assessment for clean water shall be
25established by the board at a rate not to exceed the rate of
26the state assessment for direct use as described in subsection
273, paragraph “b”.
28 Sec. 77. Section 185.22, Code 2017, is amended to read as
29follows:
30185.22 Promotional order Invoice.
311. After a promotional order has been issued, the first
32purchaser at the time of payment for soybeans shall show the
33total amount of the state assessment for direct use, and the
34state assessment for clean water, deducted from the sale on the
35purchase invoice.
-73- 12. The board may require the invoice to separately indicate
2the amount withheld for the state assessment for direct use
3and the state assessment for clean water. The invoice may
4correspond to any invoice required to collect the national
5assessment.
6 Sec. 78. Section 185.23, Code 2017, is amended to read as
7follows:
8185.23 Deduction of assessment.
9The state assessment for direct use and any state assessment
10for clean water shall be deducted from the purchase price of
11soybeans at the time of sale, and forwarded to the board by the
12first purchaser in the manner and at intervals determined by
13the board.
14 Sec. 79. Section 185.24, Code 2017, is amended to read as
15follows:
16185.24 Termination of a promotional order.
171. If a promotional order is not extended as determined
18by a special referendum, the secretary and the board shall
19terminate the promotional order in an orderly manner as soon
20as practicable. The termination of the promotional order
21shall terminate the state assessment for direct use. After
22all moneys collected from the state assessment for direct use
23 are expended, the board shall remain in existence as provided
24in its articles of incorporation or bylaws. The directors
25shall no longer be elected as required in this chapter. The
26ex officio directors shall no longer serve on the board. The
27board shall cease to administer this chapter, and the board
28shall no longer carry out its duties or exercise its powers
29as provided in this chapter. However, if a future initial
30 referendum passes, the board shall be reorganized by the
31secretary and the directors then serving on the board shall be
32deemed to be the same directors who served on the board when
33the promotional order was terminated. The directors shall
34serve out their terms as though there had been no lapse of time
35between the two effective orders.
-74- 12. The termination of the promotional order shall terminate
2the state assessment for clean water. The board shall transfer
3any remaining moneys collected from the state assessment for
4clean water to the clean water fund created in section 466B.51.
5 Sec. 80. Section 185.25, Code 2017, is amended to read as
6follows:
7185.25 Special referendum referendums — producer petition
8 petitions.
91. Upon receipt of a petition described in subsection 3,
10the secretary shall call a special referendum to extend the
11promotional order including continuing the state assessment for
12direct use as part of the promotional order.
132. a. Upon receipt of a petition described in subsection 3,
14the secretary shall call a special referendum to continue the
15state assessment for clean water.
16b. The secretary shall include as part of the special
17referendum conducted under subsection 1 a separate special
18question whether to continue the state assessment for clean
19water, if the secretary determines the inclusion of the special
20question is cost-effective or the petition demands inclusion.
213. The secretary shall call a special referendum described
22in this sectionnot less than one hundred fifty nor more than
23two hundred forty days from a four-year anniversary of the
24effective date of an initial promotional order upon receipt
25of a petition, signed within that same period by a number of
26producers equal to or greater than one percent of the number of
27producers reported in the most recent United States census of
28agriculture, requesting a the special referendum to determine
29whether to extend the promotional order, and the secretary
30shall call a the special referendum to be conducted not earlier
31than thirty days before the four-year anniversary date.
324. a. If the secretary determines that extension of
33the promotional order is not favored by a majority of the
34producers voting in the special referendum, the promotional
35order shall be terminated as provided in section 185.24. The
-75-1state assessment for clean water if established shall also
2be terminated. If the promotional order is terminated under
3this paragraph, another special referendum to reestablish the
4promotional order shall not be held within conducted for at
5least one hundred eighty days after the date that the most
6recent special referendum was conducted.
7b. If the secretary determines that a continuance of the
8state assessment for clean water is not favored by a majority
9of the producers voting in the special referendum, the state
10assessment shall be terminated as provided in section 185.24.
11If the state assessment for clean water is terminated under
12this paragraph, another special referendum establishing the
13state assessment or another special referendum that includes
14a separate special question to establish the state assessment
15shall not be conducted for at least one hundred eighty days
16after the date that the last special referendum terminating the
17state assessment was conducted.
185. A succeeding special referendum shall be called by the
19secretary upon the petition of a number of producers equal
20to or greater than one percent of the number of producers
21reported in the most recent United States census of agriculture
22requesting a the special referendum, who shall guarantee the
23costs of the referendum.
246. a. If no valid petition is received by the secretary
25within the time period described above in subsection 1, or if a
26petition is received but the special referendum to extend the
27promotional order passes, the promotional order shall continue
28in effect for four additional years from the anniversary of its
29effective date.
30b. If no valid petition for a special referendum to
31continue the state assessment for clean water is received by
32the secretary within the time period described in subsection
333, the state assessment shall continue in effect for four
34additional years from the anniversary of the effective date of
35the promotional order.
-76-1 Sec. 81. NEW SECTION. 185.25A Special referendum — change
2in state assessment rate for clean water.
31. If a national assessment is imposed and upon receipt
4of a petition that otherwise complies with the requirements
5of section 185.25, the secretary shall conduct a special
6referendum to change the rate of the state assessment for
7clean water established by the board at a rate not to exceed
8the combined rate of the national assessment and the state
9assessment for direct use as provided in section 185.21,
10subsection 3, paragraph “a”. The special referendum shall be
11conducted in the same manner as a special referendum conducted
12pursuant to section 185.25. However, the special referendum
13may be conducted in the same manner and in conjunction with a
14referendum to change the rate of the national assessment, to
15the extent permitted by federal law.
162. If a national assessment is not imposed and upon receipt
17of a petition that otherwise complies with the requirements
18of section 185.25, the secretary shall conduct a special
19referendum to change the rate of the state assessment for clean
20water established by the board to a rate not to exceed the rate
21of the state assessment for direct use as provided in section
22185.21, subsection 3, paragraph “b”. The special referendum
23shall be conducted in the same manner as a special referendum
24conducted pursuant to section 185.25.
253. If a special referendum or special question to change
26the rate of the state assessment for clean water does not pass,
27the result of the vote shall not affect the existence or period
28during which the state assessment is in effect.
29 Sec. 82. Section 185.26, Code 2017, is amended to read as
30follows:
31185.26 Administration of moneys.
321. a. The Moneys from a state assessment for direct use
33imposed as part of a promotional order and collected by the
34board shall be deposited in a special fund known as the soybean
35promotion fund, in the office of the treasurer of state. The
-77-1fund may also contain include any gifts or federal or state
2grant received by the board. Moneys The moneys collected,
3deposited into the fund, and transferred to the board, as
4provided in this chapter, shall be subject to audit by the
5auditor of state.
6b. The department of administrative services shall
7transfer moneys from the fund to the board for deposit into an
8account known as the soybean checkoff account which shall be
9established by the board in a qualified financial institution.
10The department shall transfer the moneys into the account as
11provided in a resolution adopted by the board. However, the
12department is only required to transfer moneys once during each
13day and only during hours when the offices of the state are
14open.
15c. From moneys collected, deposited, and transferred to the
16soybean checkoff account as provided in this section, the board
17shall first pay the costs of initial and special referendums,
18elections, and other expenses incurred in the administration of
19this chapter, before moneys may be expended to carry out the
20purposes of the board as provided in section 185.11. The board
21shall strictly segregate moneys in the soybean checkoff account
22from all other moneys of the board. Moneys in the soybean
23checkoff account shall be expended by the board exclusively for
24carrying out the purposes of the board as provided in section
25185.11. The account shall be subject to audit by the auditor
26of state.
272. Moneys from a state assessment for clean water collected
28by the board may be deposited in a qualified financial
29institution and shall be transferred to the clean water fund
30created in section 466B.51.
312. 3. The fiscal year of the association shall commence on
32October 1 and end on September 30.
33 Sec. 83. Section 185.27, Code 2017, is amended to read as
34follows:
35185.27 Refund of assessment.
-78- 11. a. A producer who has sold soybeans and had the state
2assessment for direct use deducted from the sale price may, by
3application in writing to the board, secure a refund in the
4amount deducted. The refund shall be payable only when the
5application is made to the board within sixty days after the
6deduction.
7b. A producer who has sold soybeans and had the state
8assessment for clean water deducted from the sale price may,
9by application in writing to the board, secure a refund of the
10amount deducted payable by the division of soil conservation
11and water quality of the department of agriculture and land
12stewardship. The board shall forward approved applications to
13the division within sixty days after the deduction.
142. Application forms shall be given by the board to
15each first purchaser when requested and the first purchaser
16shall make the applications available to any producer. Each
17application for refund by a producer shall have attached
18thereto proof of assessment deducted. The proof of assessment
19may be in the form of a duplicate or certified copy of the
20purchase invoice by the first purchaser. The board shall
21have thirty days from the date the application for refund is
22received to remit the refund to the producer. The form shall
23allow the applicant to elect whether the refund is for the
24state assessment for direct use or for the state assessment
25for clean water or both. The board shall not approve an
26application unless the application indicates the election.
27 Sec. 84. Section 185.28, Code 2017, is amended to read as
28follows:
29185.28 Use of moneys — appropriation.
301. All moneys collected, deposited, and transferred to the
31board as provided in this chapter, are appropriated and shall
32be used for the administration of this chapter by the board and
33for the payment of claims by the board based upon obligations
34incurred in the performance of board activities and functions
35provided in this chapter.
-79- 12. Except as expressly provided in this chapter, moneys
2collected from the state assessment for clean water under this
3section shall not be used for any purpose other than to be
4transferred to the clean water fund created in section 466B.51.
5 Sec. 85. Section 185.29, Code 2017, is amended to read as
6follows:
7185.29 Remission of remaining moneys.
81. After the board has paid the costs of elections,
9referendum, necessary board expenses, and administrative costs,
10the remaining moneys collected, deposited in the soybean
11promotion fund, and transferred to the soybean checkoff account
12as provided in section 185.26 shall be expended by the board as
13is necessary to carry out its purposes as provided in section
14185.11.
152. Notwithstanding subsection 1, moneys collected from
16a state assessment for clean water by the board shall be
17transferred to the clean water fund created in section 466B.51.
18 Sec. 86. Section 185.33, Code 2017, is amended to read as
19follows:
20185.33 Report.
21The board shall each year prepare and submit a report
22summarizing the activities of the board under this chapter to
23the auditor of state and the secretary of agriculture. The
24report shall show all income, expenses, and other relevant
25information concerning fees state assessments for direct use
26 collected and expended under the provisions of this chapter.
27DIVISION VIII
28IOWA CORN PROMOTION BOARD
29 Sec. 87. Section 185C.1, subsection 17, Code 2017, is
30amended to read as follows:
3117. “State assessment” means a state excise tax on each
32bushel of corn marketed in this state which is imposed as part
33of a promotional order to administer this chapter pursuant to a
34state assessment for direct use or a state assessment for clean
35water.
-80-1 Sec. 88. Section 185C.2, Code 2017, is amended to read as
2follows:
3185C.2 Petition for election Referendums.
41. Upon receipt of a petition signed by at least five
5hundred producers requesting an initial referendum election
6 to determine whether a promotional order shall be placed in
7effect, the secretary shall call an initial referendum election
8 to be conducted within sixty days following receipt of the
9petition. Producers shall vote by written ballot in the manner
10provided by this chapter for a referendum elections to approve
11the passage of a promotional order.
122. a. If a promotional order is placed into effect, and
13upon receipt of a petition that otherwise complies with the
14requirements of subsection 1, the secretary shall conduct a
15special referendum to establish a state assessment for clean
16water.
17b. Upon receipt of a petition that otherwise complies with
18the requirements of subsection 1, the secretary shall include
19as part of the initial referendum a separate special question
20whether to establish a state assessment for clean water as
21described in this section, if the secretary determines the
22inclusion of the special question is cost-effective or the
23petition demands inclusion.
24 Sec. 89. Section 185C.3, Code 2017, is amended to read as
25follows:
26185C.3 Establishment of corn promotion board.
27If a majority of the producers voting in the an initial
28 referendum election conducted pursuant to section 185C.2
29 approve the passage of the promotional order, an Iowa corn
30promotion board shall be established.
31 Sec. 90. Section 185C.11, subsection 1, Code 2017, is
32amended by adding the following new paragraph:
33 NEW PARAGRAPH. j. Cooperate with the division of soil
34conservation and water quality of the department of agriculture
35and land stewardship in doing all of the following:
-81- 1(1) Transferring moneys collected from the state assessment
2for clean water to the clean water fund created in section
3466B.51.
4(2) Being reimbursed for reasonable expenses incurred
5in conducting an initial or special referendum to establish,
6continue, or terminate a state assessment for clean water.
7 Sec. 91. Section 185C.11A, Code 2017, is amended by adding
8the following new subsection:
9 NEW SUBSECTION. 5. The board shall not expend moneys
10collected from the state assessment for clean water to support
11the program.
12 Sec. 92. Section 185C.15, Code 2017, is amended to read as
13follows:
14185C.15 Term of promotional order — automatic extension.
15A promotional order shall be effective for four years from
16its effective date. Upon the date that an the promotional
17 order is due to expire the order shall automatically be
18extended for an additional four years from the date that the
19order or last extension would otherwise expire, except as
20provided in section 185C.24. A state assessment for clean
21water shall continue for the same period as the promotional
22order unless the state assessment for clean water is terminated
23as provided in section 185C.24.
24 Sec. 93. Section 185C.21, Code 2017, is amended to read as
25follows:
26185C.21 State assessment assessments — rates.
271. The board shall determine and set the rate of the state
28assessment rate for direct use as part of the promotional
29order. State assessments A state assessment for direct use
30 collected pursuant to the promotional order shall be paid
31into the corn promotion fund established in section 185C.26.
32Except as provided in subsection 2 subsections 2 and 3, a state
33assessment shall not exceed one-quarter of one cent per bushel
34upon corn marketed in this state.
352. Upon request of the board, the secretary shall call
-82-1a special referendum for producers to vote on whether to
2authorize an increase in the rate of the state assessment
3for direct use above one-quarter of one cent per bushel,
4notwithstanding subsection 1. The special referendum shall be
5conducted as provided in this chapter for referendum elections
6 referendums. However, the special referendum shall not affect
7the existence or length of the promotional order in effect. If
8a majority of the producers voting in the special referendum
9approve the increase, the board may increase the assessment to
10the amount approved in the special referendum. The board shall
11establish the effective date of a rate change. However, the
12rate of a state assessment for direct use shall not exceed a
13scheduled maximum rate determined as follows:
14a. Before September 1, 2014, one cent.
15b. For each marketing year of the period beginning September
161, 2014, and ending August 31, 2019, two cents.
17c. For each marketing year beginning on and after September
181, 2019, three cents.
193. The rate of the state assessment for clean water shall
20be established by the board not to exceed the rate of the
21state assessment for direct use in effect on the date that the
22special referendum establishing the state assessment for clean
23water is approved.
244. a. Upon request of the board, the secretary shall
25call a special referendum for producers to vote on whether to
26authorize an increase in the state assessment for clean water
27to be established by the board at a rate not to exceed the rate
28in effect under subsection 2. The special referendum shall be
29conducted in the same manner as provided in that subsection.
30b. Upon request of the board, the secretary shall include
31as part of the special referendum conducted under subsection
322 a separate special question whether to increase the rate
33of the state assessment for clean water to be established by
34the board at a rate not to exceed the rate of the proposed
35increased amount of the state assessment for direct use, if the
-83-1secretary determines the inclusion of the special question is
2cost-effective or the request demands inclusion.
3 Sec. 94. Section 185C.22, Code 2017, is amended to read as
4follows:
5185C.22 State assessment assessments on purchase invoice.
61. After a promotional order has been issued, the first
7purchaser at the time of payment for corn shall show the
8total amount of state assessment for direct use and the state
9assessment for clean water deducted from the sale on the
10purchase invoice.
112. The board may require the invoice to separately indicate
12the amount withheld for the state assessment for direct use
13and the state assessment for clean water. The invoice may
14correspond to any invoice required to collect the federal
15assessment pursuant to section 185C.25A.
16 Sec. 95. Section 185C.24, Code 2017, is amended to read as
17follows:
18185C.24 Cancellation, and suspension, and termination.
191. The board shall be suspended and board operations and
20terms of members shall cease upon either of the following
21events:
22a. The state assessment for direct use is terminated
23pursuant to section 185C.25.
24b. The state assessment for direct use is suspended pursuant
25to section 185C.25A.
262. However, notwithstanding subsection 1, the board shall
27continue to operate until proceeds remaining in the corn
28promotion fund are disbursed. Disbursement shall be made as
29provided for payment of moneys under section 185C.26.
303. If a state assessment for direct use and the federal
31assessment are not imposed, the board shall continue to
32transfer remaining moneys collected from the state assessment
33for clean water to the clean water fund created in section
34466B.51.
353. 4. The secretary shall order that the board be
-84-1reconstituted upon either of the following events:
2a. Recommencement of the promotional order, pursuant to
3section 185C.25.
4b. Termination of the promotional order’s suspension,
5pursuant to section 185C.25A.
64. 5. Until the board is reconstituted under section
7185C.8, the secretary has the powers to perform the duties of
8the board as provided in this chapter, including the collection
9of the state assessment for direct use at the rate in effect
10on the date when collection of the state assessment for direct
11use was terminated pursuant to section 185C.25. However, the
12secretary shall not expend funds moneys collected from the
13 state assessment for direct use.
146. Until the board is reconstituted, the secretary may
15collect the state assessment for clean water equal to the rate
16when the state assessment for clean water was terminated. The
17secretary shall transfer the collected moneys to the clean
18water fund created in section 466B.51.
19 Sec. 96. Section 185C.25, Code 2017, is amended to read as
20follows:
21185C.25 Effective period of promotional order and state
22assessments — special referendums — termination.
231. a. A state assessment for direct use adopted upon the
24initiation of a promotional order shall be collected during the
25effective period of the order, and shall have no effect upon
26termination of the promotional order.
27b. A state assessment for clean water if established shall
28be collected during the effective period of the promotional
29order, and shall have no effect upon the termination of the
30promotional order. However, the state assessment for clean
31water shall still be collected during any period in which a
32federal assessment is collected, unless the state assessment is
33terminated under this section.
342. Upon adoption or extension of the promotional order, the
35order shall be effective for the period described in section
-85-1185C.15 unless the order is terminated as provided in this
2section or suspended as provided in section 185C.25A.
32. 3. The secretary shall call a special referendum to
4terminate the promotional order including the state assessment
5for direct use imposed as part of the promotional order, and
6the state assessment for clean water if established.
74. a. The secretary shall call, as provided in subsection
85, a special referendum to terminate the state assessment for
9clean water if established.
10b. The secretary shall include as part of the special
11referendum conducted under subsection 3, a separate special
12question whether to terminate the state assessment for clean
13water, if the secretary determines the inclusion of the
14special question is cost-effective or the petition described in
15subsection 5 demands inclusion.
165. The secretary shall call a special referendum under this
17sectionif all the following conditions are met:
18a. The secretary receives a petition signed by at least five
19percent of the state’s producers reported in the most recent
20United States census of agriculture.
21b. The petition is signed by at least five percent of the
22state’s producers residing in each of five districts according
23to the most recent United States census of agriculture.
24c. The secretary receives the petition not less than one
25hundred fifty days from the date that the order is due to
26expire, but receives the petition not more than two hundred
27forty days before the date that the order is due to expire.
283. 6. a. The secretary shall conduct the election as
29provided for a special referendum to terminate the promotional
30order including the state assessment for direct use and the
31state assessment for clean water in the same manner as an
32initial referendum conducted under this chapter, including
33sections 185C.16 through 185C.20.
34b. The secretary shall conduct the special referendum to
35terminate the state assessment for clean water in the same
-86-1manner as an initial referendum conducted under this chapter,
2including sections 185C.16 through 185C.20.
37. a. If upon counting and tabulating the ballots, the
4secretary determines that a majority of voting producers favor
5 favors termination of the state assessment for direct use, the
6secretary, in cooperation with the board, shall terminate the
7state assessment for direct use in an orderly manner as soon
8as practicable.
9b. If upon counting and tabulating the ballots, the
10secretary determines that a majority of voting producers favors
11termination of the state assessment for clean water, the
12secretary, in cooperation with the board, shall terminate the
13state assessment for clean water in an orderly manner as soon
14as practicable.
154. 8. a. If the a state assessment for direct use is
16terminated, another an initial referendum shall not be held
17 conducted for at least one hundred eighty days from the date
18that the state assessment is terminated.
19b. If a state assessment for clean water is terminated,
20another special referendum or another special referendum
21which includes a separate special question to establish a
22state assessment shall not be conducted for at least one
23hundred eighty days from the date that the state assessment is
24terminated.
259. A succeeding special referendum to restore the state
26 assessment for direct use shall be called by the secretary
27upon receipt of a petition of at least five hundred producers
28requesting a the special referendum. The petitioners shall
29guarantee the costs of the succeeding referendum. The
30secretary shall conduct the election special referendum as
31provided for a an initial referendum under this chapter
32section 185C.2 not later than one hundred fifty days after
33the secretary receives the petition. If a referendum held
34 conducted pursuant to this subsection is approved by producers,
35the promotional order shall commence no later than two hundred
-87-1ten days following the date that the petition is received by
2the secretary.
310. a. A succeeding special referendum to restore the state
4assessment for clean water shall be called by the secretary
5upon petition that otherwise complies with a petition to
6restore the state assessment for direct use under subsection 9.
7The secretary shall conduct the succeeding special referendum
8in the same manner as a succeeding special referendum conducted
9under that subsection. If a special referendum conducted
10pursuant to this paragraph is approved by producers, the state
11assessment for clean water shall commence not later than two
12hundred ten days following the date that the petition is
13received by the secretary.
14b. Upon receipt of a petition that otherwise complies
15with a petition to restore the state assessment for direct
16use under subsection 9, the secretary shall include as part
17of the succeeding special referendum conducted under that
18subsection a separate special question whether to restore the
19state assessment for clean water, if the secretary determines
20the inclusion of the special question is cost-effective or the
21request demands inclusion.
22 Sec. 97. Section 185C.25A, Code 2017, is amended to read as
23follows:
24185C.25A Collection of federal assessment.
251. a. Prior to the collection of the federal assessment,
26the board may approve the continued collection of the state
27assessment for direct use as part of the promotional order
28 during the collection of the federal assessment.
29b. If a federal assessment is collected, the state
30assessment for clean water, if established, shall continue to
31be imposed until terminated under section 185C.25.
322. If the collection of amount collected from the state
33assessment for direct use would be in addition to, and not an
34offset against, the collection of amount collected from the
35federal assessment, the board shall suspend the collection
-88-1of the state assessment. On the date of the termination or
2suspension of the federal assessment, the promotional order
3shall recommence and the suspension of the state assessment for
4direct use shall terminate. The termination or suspension of
5the federal assessment shall not affect the state assessment
6for clean water.
7 Sec. 98. Section 185C.26, Code 2017, is amended to read as
8follows:
9185C.26 Deposit of moneys — corn promotion fund —
10administration of moneys.
111. a. A Moneys from a state assessment for direct use
12imposed as part of a promotional order and collected by the
13board from a sale of corn shall be deposited in the office of
14the treasurer of state in a special fund known as the corn
15promotion fund. The corn promotion fund may also include
16any gifts, rents, royalties, interest, license fees, or a
17federal or state grant received by the board. Moneys The
18moneys collected, deposited in the corn promotion fund, and
19transferred to the board as provided in this chapter shall be
20subject to audit by the auditor of state. The auditor of state
21may seek reimbursement for the cost of the audit from moneys
22deposited in the fund as provided in this chapter.
23b. The department of administrative services shall transfer
24moneys from the corn promotion fund to the board for deposit
25into an account established by the board in a qualified
26financial institution. The department shall transfer the
27moneys as provided in a resolution adopted by the board.
28However, the department is only required to transfer moneys
29once during each day and only during hours when the offices of
30the state are open.
31c. From moneys collected, the board shall first pay all
32the direct and indirect costs incurred by the secretary and
33the costs of initial and special referendums, elections, and
34other expenses incurred in the administration of this chapter,
35before moneys may be expended to carry out the purposes of this
-89-1chapter as provided in section 185C.11.
22. Moneys from a state assessment for clean water collected
3by the board may be deposited in a qualified financial
4institution and shall be transferred to the clean water fund
5created in section 466B.51.
6 Sec. 99. Section 185C.27, Code 2017, is amended to read as
7follows:
8185C.27 Refund of assessment state assessments.
91. a. A producer who has sold corn and had a state
10assessment for direct use deducted from the sale price, by
11application in writing to the board, may secure a refund in the
12amount deducted. The refund shall be payable only when the
13application shall have been made to the board within sixty days
14after the deduction. The board shall have thirty days from the
15date the application for refund is received to remit the refund
16to the producer.
17b. A producer who has sold corn and had the state
18assessment for clean water deducted from the sale price may,
19by application in writing to the board, secure a refund of the
20amount deducted payable by the division of soil conservation
21and water quality of the department of agriculture and land
22stewardship. The board shall forward approved applications to
23the division within sixty days after the deduction.
242. Application forms shall be given by the board to
25each first purchaser when requested and the first purchaser
26shall make the applications available to any producer. Each
27application for refund by a producer shall have attached to
28the application proof of the state assessment deducted. The
29proof of state assessment may be in the form of a duplicate
30or certified copy of the purchase invoice by the first
31purchaser. The board shall have thirty days from the date the
32application for refund is received to remit the refund to the
33producer. The form shall allow the applicant to elect whether
34the refund is for the state assessment for direct use or the
35state assessment for clean water or both. The board shall not
-90-1approve an application unless the application indicates the
2election.
33. a. The board may provide for refunds of a federal
4assessment as provided by federal law. Unless inconsistent
5with federal law, refunds shall be made under section 185C.26.
6b. The board may provide for filing applications for a
7refund of the state assessment for direct use and the state
8assessment for clean water based on applicable procedures
9for the filing of applications for refunds of the federal
10assessment.
11 Sec. 100. Section 185C.29, subsection 1, Code 2017, is
12amended to read as follows:
131. After the direct and indirect costs incurred by the
14secretary and the costs of elections, referendums, necessary
15board expenses, and administrative costs have been paid, at
16least seventy-five percent of the remaining moneys from a
17state assessment for direct use shall be deposited in the corn
18promotion fund and shall be used to carry out the purposes of
19the board as provided in section 185C.11.
20 Sec. 101. Section 185C.33, Code 2017, is amended to read as
21follows:
22185C.33 Report.
23The board shall each year prepare and submit a report
24summarizing the activities of the board under this chapter to
25the auditor of state and the secretary of agriculture. The
26report shall show all income, expenses, and other relevant
27information concerning fees the state assessment for direct use
28 collected and expended under the provisions of this chapter.
29DIVISION IX
30CLEAN WATER FUND
31 Sec. 102. NEW SECTION. 7D.10B Payment to the clean water
32fund.
33If moneys are not sufficient to reimburse the department of
34agriculture and land stewardship or a commodity organization
35described in section 466B.51 for reasonable expenses incurred
-91-1in conducting a referendum to establish, continue, or terminate
2a state assessment for clean water, the executive council may
3authorize as an expense paid from the appropriations addressed
4in section 7D.29 the payment of an amount to the clean water
5fund created in section 466B.51. However, not more than a
6total of one hundred thousand dollars shall be paid pursuant
7to this section to the fund at any one time to pay for expenses
8incurred in conducting a referendum.
9 Sec. 103. Section 423.2, subsections 1, 2, 3, 4, 5, 7, 8, 9,
10and 14, Code 2017, are amended to read as follows:
111. a. There is imposed a tax of six percent upon the sales
12price of all sales of tangible personal property, consisting
13of goods, wares, or merchandise, sold at retail in the state
14to consumers or users except as otherwise provided in this
15subchapter. This paragraph is repealed on the date that
16paragraph “b” takes effect.
17b. There is imposed a tax of six and one-eighth percent upon
18the sales price of all sales of tangible personal property,
19consisting of goods, wares, or merchandise, sold at retail in
20the state to consumers or users except as otherwise provided
21in this subchapter. This paragraph takes effect on July 1 of
22the fiscal year in which the department receives the first
23certification that commodity organizations have collected
24twenty million dollars from clean water assessments during the
25preceding fiscal year as provided in section 466B.55. This
26paragraph is repealed on the date that paragraph “c” takes
27effect.
28c. There is imposed a tax of six and two-eighths percent
29upon the sales price of all sales of tangible personal
30property, consisting of goods, wares, or merchandise, sold at
31retail in the state to consumers or users except as otherwise
32provided in this subchapter. This paragraph takes effect on
33July 1 of the fiscal year in which the department receives
34the second certification that commodity organizations have
35collected twenty million dollars from clean water assessments
-92-1during the preceding fiscal year as provided in section
2466B.55. This paragraph is repealed on the date that paragraph
3“d” takes effect.
4d. There is imposed a tax of six and three-eighths percent
5upon the sales price of all sales of tangible personal
6property, consisting of goods, wares, or merchandise, sold at
7retail in the state to consumers or users except as otherwise
8provided in this subchapter. This paragraph takes effect on
9July 1 of the fiscal year in which the department receives the
10third certification that commodity organizations have collected
11twenty million dollars from clean water assessments during the
12preceding fiscal year as provided in section 466B.55.
13a. e. For the purposes of this subchapter, sales of
14the following services are treated as if they were sales of
15tangible personal property:
16(1) Sales of engraving, photography, retouching, printing,
17and binding services.
18(2) Sales of vulcanizing, recapping, and retreading
19services.
20(3) Sales of prepaid calling services and prepaid wireless
21calling services.
22(4) Sales of optional service or warranty contracts, except
23residential service contracts regulated under chapter 523C,
24which provide for the furnishing of labor and materials and
25require the furnishing of any taxable service enumerated under
26this section. The sales price is subject to tax even if some of
27the services furnished are not enumerated under this section.
28Additional sales, services, or use taxes shall not be levied
29on services, parts, or labor provided under optional service
30or warranty contracts which are subject to tax under this
31subsection.
32(5) Sales of optional service or warranty contracts for
33computer software maintenance or support services.
34(a) If a service or warranty contract does not specify a fee
35amount for nontaxable services or taxable personal property,
-93-1the tax imposed pursuant to this section shall be imposed upon
2an amount equal to one-half of the sales price of the contract.
3(b) If a service or warranty contract provides only for
4technical support services, no tax shall be imposed pursuant to
5this section.
6(6) Subparagraphs (4) and (5) shall also apply to the use
7tax imposed under section 423.5.
8b. f. Sales of building materials, supplies, and equipment
9to owners, contractors, subcontractors, or builders for the
10erection of buildings or the alteration, repair, or improvement
11of real property are retail sales of tangible personal property
12in whatever quantity sold. Where the owner, contractor,
13subcontractor, or builder is also a retailer holding a retail
14sales tax permit and transacting retail sales of building
15materials, supplies, and equipment, the person shall purchase
16such items of tangible personal property without liability for
17the tax if such property will be subject to the tax at the
18time of resale or at the time it is withdrawn from inventory
19for construction purposes. The sales tax shall be due in the
20reporting period when the materials, supplies, and equipment
21are withdrawn from inventory for construction purposes or
22when sold at retail. The tax shall not be due when materials
23are withdrawn from inventory for use in construction outside
24of Iowa and the tax shall not apply to tangible personal
25property purchased and consumed by the manufacturer as building
26materials in the performance by the manufacturer or its
27subcontractor of construction outside of Iowa. The sale of
28carpeting is not a sale of building materials. The sale of
29carpeting to owners, contractors, subcontractors, or builders
30shall be treated as the sale of ordinary tangible personal
31property and subject to the tax imposed under this subsection
32and the use tax.
33c. g. The use within this state of tangible personal
34property by the manufacturer thereof, as building materials,
35supplies, or equipment, in the performance of construction
-94-1contracts in Iowa, shall, for the purpose of this subchapter,
2be construed as a sale at retail of tangible personal property
3by the manufacturer who shall be deemed to be the consumer of
4such tangible personal property. The tax shall be computed
5upon the cost to the manufacturer of the fabrication or
6production of the tangible personal property.
72. a. A tax of six percent is imposed upon the sales price
8of the sale or furnishing of gas, electricity, water, heat,
9pay television service, and communication service, including
10the sales price from such sales by any municipal corporation
11or joint water utility furnishing gas, electricity, water,
12heat, pay television service, and communication service to
13the public in its proprietary capacity, except as otherwise
14provided in this subchapter, when sold at retail in the state
15to consumers or users. This paragraph is repealed on the date
16that paragraph “b” takes effect.
17b. A tax of six and one-eighth percent is imposed upon the
18sales price of the sale or furnishing of gas, electricity,
19water, heat, pay television service, and communication service,
20including the sales price from such sales by any municipal
21corporation or joint water utility furnishing gas, electricity,
22water, heat, pay television service, and communication service
23to the public in its proprietary capacity, except as otherwise
24provided in this subchapter, when sold at retail in the state
25to consumers or users. This paragraph takes effect on July 1
26of the fiscal year in which the department receives the first
27certification that commodity organizations have collected
28twenty million dollars from clean water assessments during the
29preceding fiscal year as provided in section 466B.55. This
30paragraph is repealed on the date that paragraph “c” takes
31effect.
32c. A tax of six and two-eighths percent is imposed upon
33the sales price of the sale or furnishing of gas, electricity,
34water, heat, pay television service, and communication service,
35including the sales price from such sales by any municipal
-95-1corporation or joint water utility furnishing gas, electricity,
2water, heat, pay television service, and communication service
3to the public in its proprietary capacity, except as otherwise
4provided in this subchapter, when sold at retail in the state
5to consumers or users. This paragraph takes effect on July 1
6of the fiscal year in which the department receives the second
7certification that commodity organizations have collected
8twenty million dollars from clean water assessments during the
9preceding fiscal year as provided in section 466B.55. This
10paragraph is repealed on the date that paragraph “d” takes
11effect.
12d. A tax of six and three-eighths percent is imposed upon
13the sales price of the sale or furnishing of gas, electricity,
14water, heat, pay television service, and communication service,
15including the sales price from such sales by any municipal
16corporation or joint water utility furnishing gas, electricity,
17water, heat, pay television service, and communication service
18to the public in its proprietary capacity, except as otherwise
19provided in this subchapter, when sold at retail in the state
20to consumers or users. This paragraph takes effect on July 1
21of the fiscal year in which the department receives the third
22certification that commodity organizations have collected
23twenty million dollars from clean water assessments during the
24preceding fiscal year as provided in section 466B.55.
253. a. A tax of six percent is imposed upon the sales price
26of all sales of tickets or admissions to places of amusement,
27fairs, and athletic events except those of elementary and
28secondary educational institutions. A tax of six percent is
29imposed on the sales price of an entry fee or like charge
30imposed solely for the privilege of participating in an
31activity at a place of amusement, fair, or athletic event
32unless the sales price of tickets or admissions charges for
33observing the same activity are taxable under this subchapter.
34A tax of six percent is imposed upon that part of private
35club membership fees or charges paid for the privilege of
-96-1participating in any athletic sports provided club members.
2This paragraph is repealed on the date that paragraph “b” takes
3effect.
4b. A tax of six and one-eighth percent is imposed upon the
5sales price of all sales of tickets or admissions to places
6of amusement, fairs, and athletic events except those of
7elementary and secondary educational institutions. A tax of
8six and one-eighth percent is imposed on the sales price of an
9entry fee or like charge imposed solely for the privilege of
10participating in an activity at a place of amusement, fair, or
11athletic event unless the sales price of tickets or admissions
12charges for observing the same activity are taxable under this
13subchapter. A tax of six and one-eighth percent is imposed
14upon that part of private club membership fees or charges paid
15for the privilege of participating in any athletic sports
16provided club members. This paragraph takes effect on July 1
17of the fiscal year in which the department receives the first
18certification that commodity organizations have collected
19twenty million dollars from clean water assessments during the
20preceding fiscal year as provided in section 466B.55. This
21paragraph is repealed on the date that paragraph “c” takes
22effect.
23c. A tax of six and two-eighths percent is imposed upon the
24sales price of all sales of tickets or admissions to places
25of amusement, fairs, and athletic events except those of
26elementary and secondary educational institutions. A tax of
27six and two-eighths percent is imposed on the sales price of an
28entry fee or like charge imposed solely for the privilege of
29participating in an activity at a place of amusement, fair, or
30athletic event unless the sales price of tickets or admissions
31charges for observing the same activity are taxable under this
32subchapter. A tax of six and two-eighths percent is imposed
33upon that part of private club membership fees or charges paid
34for the privilege of participating in any athletic sports
35provided club members. This paragraph takes effect on July 1
-97-1of the fiscal year in which the department receives the second
2certification that commodity organizations have collected
3twenty million dollars from clean water assessments during the
4preceding fiscal year as provided in section 466B.55. This
5paragraph is repealed on the date that paragraph “d” takes
6effect.
7d. A tax of six and three-eighths percent is imposed upon
8the sales price of all sales of tickets or admissions to places
9of amusement, fairs, and athletic events except those of
10elementary and secondary educational institutions. A tax of
11six and three-eighths percent is imposed on the sales price of
12an entry fee or like charge imposed solely for the privilege
13of participating in an activity at a place of amusement,
14fair, or athletic event unless the sales price of tickets or
15admissions charges for observing the same activity are taxable
16under this subchapter. A tax of six and three-eighths percent
17is imposed upon that part of private club membership fees or
18charges paid for the privilege of participating in any athletic
19sports provided club members. This paragraph takes effect on
20July 1 of the fiscal year in which the department receives the
21third certification that commodity organizations have collected
22twenty million dollars from clean water assessments during the
23preceding fiscal year as provided in section 466B.55.
244. a. A tax of six percent is imposed upon the sales price
25derived from the operation of all forms of amusement devices
26and games of skill, games of chance, raffles, and bingo games
27as defined in chapter 99B, and card game tournaments conducted
28under section 99B.27, that are operated or conducted within the
29state, the tax to be collected from the operator in the same
30manner as for the collection of taxes upon the sales price of
31tickets or admission as provided in this section. Nothing in
32this subsection shall legalize any games of skill or chance or
33slot-operated devices which are now prohibited by law. This
34paragraph is repealed on the date that paragraph “b” takes
35effect.
-98- 1b. A tax of six and one-eighth percent is imposed upon
2the sales price derived from the operation of all forms of
3amusement devices and games of skill, games of chance, raffles,
4and bingo games as defined in chapter 99B, and card game
5tournaments conducted under section 99B.27, that are operated
6or conducted within the state, the tax to be collected from
7the operator in the same manner as for the collection of taxes
8upon the sales price of tickets or admission as provided in
9this section. Nothing in this subsection shall legalize any
10games of skill or chance or slot-operated devices which are
11now prohibited by law. This paragraph takes effect on July 1
12of the fiscal year in which the department receives the first
13certification that commodity organizations have collected
14twenty million dollars from clean water assessments during the
15preceding fiscal year as provided in section 466B.55. This
16paragraph is repealed on the date that paragraph “c” takes
17effect.
18c. A tax of six and two-eighths percent is imposed upon
19the sales price derived from the operation of all forms of
20amusement devices and games of skill, games of chance, raffles,
21and bingo games as defined in chapter 99B, and card game
22tournaments conducted under section 99B.27, that are operated
23or conducted within the state, the tax to be collected from
24the operator in the same manner as for the collection of taxes
25upon the sales price of tickets or admission as provided in
26this section. Nothing in this subsection shall legalize any
27games of skill or chance or slot-operated devices which are
28now prohibited by law. This paragraph takes effect on July 1
29of the fiscal year in which the department receives the second
30certification that commodity organizations have collected
31twenty million dollars from clean water assessments during the
32preceding fiscal year as provided in section 466B.55. This
33paragraph is repealed on the date that paragraph “d” takes
34effect.
35d. A tax of six and three-eighths percent is imposed upon
-99-1the sales price derived from the operation of all forms of
2amusement devices and games of skill, games of chance, raffles,
3and bingo games as defined in chapter 99B, and card game
4tournaments conducted under section 99B.27, that are operated
5or conducted within the state, the tax to be collected from
6the operator in the same manner as for the collection of taxes
7upon the sales price of tickets or admission as provided in
8this section. Nothing in this subsection shall legalize any
9games of skill or chance or slot-operated devices which are
10now prohibited by law. This paragraph takes effect on July 1
11of the fiscal year in which the department receives the third
12certification that commodity organizations have collected
13twenty million dollars from clean water assessments during the
14preceding fiscal year as provided in section 466B.55.
15b. e. The tax imposed under this subsection covers the
16total amount from the operation of games of skill, games
17of chance, raffles, and bingo games as defined in chapter
1899B, card game tournaments conducted under section 99B.27,
19and musical devices, weighing machines, shooting galleries,
20billiard and pool tables, bowling alleys, pinball machines,
21slot-operated devices selling merchandise not subject to the
22general sales taxes and on the total amount from devices or
23systems where prizes are in any manner awarded to patrons and
24upon the receipts from fees charged for participation in any
25game or other form of amusement, and generally upon the sales
26price from any source of amusement operated for profit, not
27specified in this section, and upon the sales price from which
28tax is not collected for tickets or admission, but tax shall
29not be imposed upon any activity exempt from sales tax under
30section 423.3, subsection 78. Every person receiving any sales
31price from the sources described in this section is subject to
32all provisions of this subchapter relating to retail sales tax
33and other provisions of this chapter as applicable.
345. a. There is imposed a tax of six percent upon the sales
35price from the furnishing of services as defined in section
-100-1423.1. This paragraph is repealed on the date that paragraph
2“b” takes effect.
3b. There is imposed a tax of six and one-eighth percent
4upon the sales price from the furnishing of services as defined
5in section 423.1. This paragraph takes effect on July 1 of
6the fiscal year in which the department receives the first
7certification that commodity organizations have collected
8twenty million dollars from clean water assessments during the
9preceding fiscal year as provided in section 466B.55. This
10paragraph is repealed on the date that paragraph “c” takes
11effect.
12c. There is imposed a tax of six and two-eighths percent
13upon the sales price from the furnishing of services as defined
14in section 423.1. This paragraph takes effect on July 1 of
15the fiscal year in which the department receives the second
16certification that commodity organizations have collected
17twenty million dollars from clean water assessments during the
18preceding fiscal year as provided in section 466B.55. This
19paragraph is repealed on the date that paragraph “d” takes
20effect.
21d. There is imposed a tax of six and three-eighths percent
22upon the sales price from the furnishing of services as defined
23in section 423.1. This paragraph takes effect on July 1 of
24the fiscal year in which the department receives the third
25certification that commodity organizations have collected
26twenty million dollars from clean water assessments during the
27preceding fiscal year as provided in section 466B.55.
287. a. A tax of six percent is imposed upon the sales
29price from the sales, furnishing, or service of solid waste
30collection and disposal service. This paragraph is repealed on
31the date that paragraph “b” takes effect.
32b. A tax of six and one-eighth percent is imposed upon the
33sales price from the sales, furnishing, or service of solid
34waste collection and disposal service. This paragraph takes
35effect on July 1 of the fiscal year in which the department
-101-1receives the first certification that commodity organizations
2have collected twenty million dollars from clean water
3assessments during the preceding fiscal year as provided in
4section 466B.55. This paragraph is repealed on the date that
5paragraph “c” takes effect.
6c. A tax of six and two-eighths percent is imposed upon the
7sales price from the sales, furnishing, or service of solid
8waste collection and disposal service. This paragraph takes
9effect on July 1 of the fiscal year in which the department
10receives the second certification that commodity organizations
11have collected twenty million dollars from clean water
12assessments during the preceding fiscal year as provided in
13section 466B.55. This paragraph is repealed on the date that
14paragraph “d” takes effect.
15d. A tax of six and three-eighths percent is imposed upon
16the sales price from the sales, furnishing, or service of solid
17waste collection and disposal service. This paragraph takes
18effect on July 1 of the fiscal year in which the department
19receives the third certification that commodity organizations
20have collected twenty million dollars from clean water
21assessments during the preceding fiscal year as provided in
22section 466B.55.
23e. (1) For purposes of this subsection, “solid waste” means
24garbage, refuse, sludge from a water supply treatment plant
25or air contaminant treatment facility, and other discarded
26waste materials and sludges, in solid, semisolid, liquid,
27or contained gaseous form, resulting from nonresidential
28commercial operations, but does not include auto hulks; street
29sweepings; ash; construction debris; mining waste; trees;
30tires; lead acid batteries; used oil; hazardous waste; animal
31waste used as fertilizer; earthen fill, boulders, or rock;
32foundry sand used for daily cover at a sanitary landfill;
33sewage sludge; solid or dissolved material in domestic
34sewage or other common pollutants in water resources, such as
35silt, dissolved or suspended solids in industrial wastewater
-102-1effluents or discharges which are point sources subject to
2permits under section 402 of the federal Water Pollution
3Control Act, or dissolved materials in irrigation return flows;
4or source, special nuclear, or by-product material defined by
5the federal Atomic Energy Act of 1954.
6(2) A recycling facility that separates or processes
7recyclable materials and that reduces the volume of the waste
8by at least eighty-five percent is exempt from the tax imposed
9by this subsection if the waste exempted is collected and
10disposed of separately from other solid waste.
11b. f. A person who transports solid waste generated by that
12person or another person without compensation shall pay the
13tax imposed by this subsection at the collection or disposal
14facility based on the disposal charge or tipping fee. However,
15the costs of a service or portion of a service to collect and
16manage recyclable materials separated from solid waste by
17the waste generator are exempt from the tax imposed by this
18subsection.
198. a. A tax of six percent is imposed on the sales price
20from sales of bundled transactions. This paragraph is repealed
21on the date that paragraph “b” takes effect.
22b. A tax of six and one-eighth percent is imposed on
23the sales price from sales of bundled transactions. This
24paragraph takes effect on July 1 of the fiscal year in which
25the department receives the first certification that commodity
26organizations have collected twenty million dollars from clean
27water assessments during the preceding fiscal year as provided
28in section 466B.55. This paragraph is repealed on the date
29that paragraph “c” takes effect.
30c. A tax of six and two-eighths percent is imposed on
31the sales price from sales of bundled transactions. This
32paragraph takes effect on July 1 of the fiscal year in which
33the department receives the second certification that commodity
34organizations have collected twenty million dollars from clean
35water assessments during the preceding fiscal year as provided
-103-1in section 466B.55. This paragraph is repealed on the date
2that paragraph “d” takes effect.
3d. A tax of six and three-eighths percent is imposed on
4the sales price from sales of bundled transactions. This
5paragraph takes effect on July 1 of the fiscal year in which
6the department receives the third certification that commodity
7organizations have collected twenty million dollars from clean
8water assessments during the preceding fiscal year as provided
9in section 466B.55.
10e. For the purposes of this subsection, a “bundled
11transaction” is the retail sale of two or more distinct and
12identifiable products, except real property and services to
13real property, which are sold for one nonitemized price. A
14“bundled transaction” does not include the sale of any products
15in which the sales price varies, or is negotiable, based on
16the selection by the purchaser of the products included in the
17transaction.
18b. f. “Distinct and identifiable products” does not include
19any of the following:
20(1) Packaging or other materials that accompany the retail
21sale of the products and are incidental or immaterial to the
22retail sale of the products.
23(2) A product provided free of charge with the required
24purchase of another product. A product is “provided free
25of charge” if the sales price of the product purchased does
26not vary depending on the inclusion of the product which is
27provided free of charge.
28(3) Items included in the definition of “sales price”
29pursuant to section 423.1.
30c. g. “One nonitemized price” does not include a price that
31is separately identified by product on binding sales or other
32supporting sales-related documentation made available to the
33customer in paper or electronic form.
349. a. A tax of six percent is imposed upon the sales price
35from any mobile telecommunications service, including all
-104-1paging services, that this state is allowed to tax pursuant
2to the provisions of the federal Mobile Telecommunications
3Sourcing Act, Pub.L. No.106-252, 4 U.S.C. §116 et seq. This
4paragraph is repealed on the date that paragraph “b” takes
5effect.
6b. A tax of six and one-eighth percent is imposed upon
7the sales price from any mobile telecommunications service,
8including all paging services, that this state is allowed
9to tax pursuant to the provisions of the federal Mobile
10Telecommunications Sourcing Act, Pub.L. No.106-252, 4
11U.S.C. §116 et seq. This paragraph takes effect on July 1 of
12the fiscal year in which the department receives the first
13certification that commodity organizations have collected
14twenty million dollars from clean water assessments during the
15preceding fiscal year as provided in section 466B.55. This
16paragraph is repealed on the date that paragraph “c” takes
17effect.
18c. A tax of six and two-eighths percent is imposed upon
19the sales price from any mobile telecommunications service,
20including all paging services, that this state is allowed
21to tax pursuant to the provisions of the federal Mobile
22Telecommunications Sourcing Act, Pub.L. No.106-252, 4
23U.S.C. §116 et seq. This paragraph takes effect on July 1 of
24the fiscal year in which the department receives the second
25certification that commodity organizations have collected
26twenty million dollars from clean water assessments during the
27preceding fiscal year as provided in section 466B.55. This
28paragraph is repealed on the date that paragraph “d” takes
29effect.
30d. A tax of six and three-eighths percent is imposed
31upon the sales price from any mobile telecommunications
32service, including all paging services, that this state is
33allowed to tax pursuant to the provisions of the federal
34Mobile Telecommunications Sourcing Act, Pub.L. No.106-252,
354 U.S.C. §116 et seq. This paragraph takes effect on July 1
-105-1of the fiscal year in which the department receives the third
2certification that commodity organizations have collected
3twenty million dollars from clean water assessments during the
4preceding fiscal year as provided in section 466B.55.
5e. For purposes of this subsection, taxes on mobile
6telecommunications service, as defined under the federal Mobile
7Telecommunications Sourcing Act that are deemed to be provided
8by the customer’s home service provider, shall be paid to
9the taxing jurisdiction whose territorial limits encompass
10the customer’s place of primary use, regardless of where the
11mobile telecommunications service originates, terminates,
12or passes through and shall in all other respects be taxed
13in conformity with the federal Mobile Telecommunications
14Sourcing Act. All other provisions of the federal Mobile
15Telecommunications Sourcing Act are adopted by the state of
16Iowa and incorporated into this subsection by reference. With
17respect to mobile telecommunications service under the federal
18Mobile Telecommunications Sourcing Act, the director shall, if
19requested, enter into agreements consistent with the provisions
20of the federal Act.
2114. a. The sales tax rate of six percent is reduced to five
22percent on January 1, 2030. This paragraph is repealed on the
23date that paragraph “b” takes effect.
24b. Notwithstanding paragraph “a”, if the sales tax rate is
25six and one-eighth percent, the sales tax rate is reduced to
26five and one-eighth percent on January 1, 2030. This paragraph
27is repealed on the date that paragraph “c” takes effect.
28c. Notwithstanding paragraph “a”, if the sales tax rate
29is six and two-eighths percent, the sales tax rate is reduced
30to five and two-eighths percent on January 1, 2030. This
31paragraph is repealed on the date that paragraph “d” takes
32effect.
33d. Notwithstanding paragraph “a”, if the sales tax rate is
34six and three-eighths percent, the sales tax rate is reduced to
35five and three-eighths percent on January 1, 2030.
-106-1 Sec. 104. Section 423.5, Code 2017, is amended to read as
2follows:
3423.5 Imposition of tax.
41. Except as provided in paragraph “c”, an excise tax at the
5rate of six percent of the purchase price or installed purchase
6price is imposed on the following:
7a. (1) The Except as provided in subsection 4, an excise
8tax of six percent of the purchase price is imposed on the
9 use in this state of tangible personal property as defined in
10section 423.1, including aircraft subject to registration under
11section 328.20, purchased for use in this state.
12(2) This paragraph “a” is repealed on the date that
13paragraph “b” takes effect.
14b. (1) Except as provided in subsection 4, an excise tax of
15six and one-eighth percent of the purchase price is imposed on
16the use in this state of tangible personal property as defined
17in section 423.1, including aircraft subject to registration
18under section 328.20, purchased for use in this state.
19(2) This paragraph “b” takes effect on July 1 of the fiscal
20year in which the department receives the first certification
21that commodity organizations have collected twenty million
22dollars from clean water assessments during the preceding
23fiscal year as provided in section 466B.55.
24(3) This paragraph “b” is repealed on the date that
25paragraph “c” takes effect.
26c. (1) Except as provided in subsection 4, an excise tax of
27six and two-eighths percent of the purchase price is imposed on
28the use in this state of tangible personal property as defined
29in section 423.1, including aircraft subject to registration
30under section 328.20, purchased for use in this state.
31(2) This paragraph “c” takes effect on July 1 of the fiscal
32year in which the department receives the second certification
33that commodity organizations have collected twenty million
34dollars from clean water assessments during the preceding
35fiscal year as provided in section 466B.55.
-107- 1(3) This paragraph “c” is repealed on the date that
2paragraph “d” takes effect.
3d. (1) Except as provided in subsection 4, an excise tax
4of six and three-eighths percent of the purchase price is
5imposed on the use in this state of tangible personal property
6as defined in section 423.1, including aircraft subject to
7registration under section 328.20, purchased for use in this
8state.
9(2) This paragraph takes effect on July 1 of the fiscal year
10in which the department receives the third certification that
11commodity organizations have collected twenty million dollars
12from clean water assessments during the preceding fiscal year
13as provided in section 466B.55.
142. For the purposes of this subchapter, the furnishing
15or use of the following services is also treated as the use
16of tangible personal property: optional service or warranty
17contracts, except residential service contracts regulated under
18chapter 523C, vulcanizing, recapping, or retreading services,
19engraving, photography, retouching, printing, or binding
20services, and communication service when furnished or delivered
21to consumers or users within this state.
22b. 3. a. (1) The Except as provided in subsection 4, an
23excise tax of six percent of the purchase price is imposed on
24the use of manufactured housing in this state, on the purchase
25price if the manufactured housing is sold in the form of
26tangible personal property or on the installed purchase price
27if the manufactured housing is sold in the form of realty.
28(2) This paragraph “a” is repealed on the date that
29paragraph “b” takes effect.
30b. (1) Except as provided in subsection 4, an excise tax of
31six and one-eighth percent of the purchase price is imposed on
32the use of manufactured housing in this state, on the purchase
33price if the manufactured housing is sold in the form of
34tangible personal property or on the installed purchase price
35if the manufactured housing is sold in the form of realty.
-108- 1(2) This paragraph “b” takes effect on July 1 of the fiscal
2year in which the department receives the first certification
3that commodity organizations have collected twenty million
4dollars from clean water assessments during the preceding
5fiscal year as provided in section 466B.55.
6(3) This paragraph “b” is repealed on the date that
7paragraph “c” takes effect.
8c. (1) Except as provided in subsection 4, an excise tax of
9six and two-eighths percent of the purchase price or installed
10purchase price is imposed on the use of manufactured housing in
11this state, on the purchase price if the manufactured housing
12is sold in the form of tangible personal property or on the
13installed purchase price if the manufactured housing is sold
14in the form of realty.
15(2) This paragraph “c” takes effect on July 1 of the fiscal
16year in which the department receives the second certification
17that commodity organizations have collected twenty million
18dollars from clean water assessments during the preceding
19fiscal year as provided in section 466B.55.
20(3) This paragraph “c” is repealed on the date that
21paragraph “d” takes effect.
22d. (1) Except as provided in subsection 4, an excise tax
23of six and three-eighths percent of the purchase price or
24installed purchase price is imposed on the use of manufactured
25housing in this state, on the purchase price if the
26manufactured housing is sold in the form of tangible personal
27property or on the installed purchase price if the manufactured
28housing is sold in the form of realty.
29(2) This paragraph “d” takes effect on July 1 of the fiscal
30year in which the department receives the third certification
31that commodity organizations have collected twenty million
32dollars from clean water assessments during the preceding
33fiscal year as provided in section 466B.55.
34c. 4. An excise tax at the rate of five percent is imposed
35on the use of vehicles subject only to the issuance of a
-109-1certificate of title and the use of manufactured housing, and
2on the use of leased vehicles, if the lease transaction does
3not require titling or registration of the vehicle, on the
4amount subject to tax as calculated pursuant to section 423.26,
5subsection 2.
6d. 5. Purchases of tangible personal property made from
7the government of the United States or any of its agencies by
8ultimate consumers shall be subject to the tax imposed by this
9section. Services purchased from the same source or sources
10shall be subject to the service tax imposed by this subchapter
11and apply to the user of the services.
12e. 6. a. (1) The An excise tax of six percent of the
13purchase price is imposed on the use in this state of services
14enumerated in section 423.2.
15(2) This paragraph “a” is repealed on the date that
16paragraph “b” takes effect.
17b. (1) An excise tax of six and one-eighth percent of the
18purchase price is imposed on the use in this state of services
19enumerated in section 423.2.
20(2) This paragraph “b” takes effect on July 1 of the fiscal
21year in which the department receives the first certification
22that commodity organizations have collected twenty million
23dollars from clean water assessments during the preceding
24fiscal year as provided in section 466B.55.
25(3) This paragraph “b” is repealed on the date that
26paragraph “c” takes effect.
27c. (1) An excise tax of six and two-eighths percent of the
28purchase price is imposed on the use in this state of services
29enumerated in section 423.2.
30(2) This paragraph “c” takes effect on July 1 of the fiscal
31year in which the department receives the second certification
32that commodity organizations have collected twenty million
33dollars from clean water assessments during the preceding
34fiscal year as provided in section 466B.55.
35(3) This paragraph “c” is repealed on the date that
-110-1paragraph “d” takes effect.
2d. (1) An excise tax of six and three-eighths percent
3of the purchase price is imposed on the use in this state of
4services enumerated in section 423.2.
5(2) This paragraph “d” takes effect on July 1 of the fiscal
6year in which the department receives the third certification
7that commodity organizations have collected twenty million
8dollars from clean water assessments during the preceding
9fiscal year as provided in section 466B.55.
10e. This tax is applicable where the service is first used
11in this state.
122. 7. The excise tax is imposed upon every person using
13the property within this state until the tax has been paid
14directly to the county treasurer, the state department of
15transportation, a retailer, or the department. This tax is
16imposed on every person using the services or the product of
17the services in this state until the user has paid the tax
18either to an Iowa use tax permit holder or to the department.
193. 8. For the purpose of the proper administration of the
20use tax and to prevent its evasion, evidence that tangible
21personal property was sold by any person for delivery in this
22state shall be prima facie evidence that such tangible personal
23property was sold for use in this state.
244. 9. Any person or that person’s affiliate, which is a
25retailer in this state or a retailer maintaining a place of
26business in this state under this chapter, that enters into a
27contract with an agency of this state must register, collect,
28and remit Iowa use tax under this chapter on all sales of
29tangible personal property and enumerated services. Every
30bid submitted and each contract executed by a state agency
31shall contain a certification by the bidder or contractor
32stating that the bidder or contractor is registered with the
33department and will collect and remit Iowa use tax due under
34this chapter. In the certification, the bidder or contractor
35shall also acknowledge that the state agency may declare the
-111-1contract or bid void if the certification is false. Fraudulent
2certification, by act or omission, may result in the state
3agency or its representative filing for damages for breach of
4contract.
55. 10. a. The use tax rate of If the use tax rate is six
6percent is reduced to five percent on January 1, 2030, the rate
7shall be reduced to five percent on that date.
8b. If the use tax rate is six and one-eighth percent
9on January 1, 2030, the rate shall be reduced to five and
10one-eighth percent on that date.
11c. If the use tax rate is six and two-eighths percent
12on January 1, 2030, the rate shall be reduced to five and
13two-eighths percent on that date.
14d. If the use tax rate is six and three-eighths percent
15on January 1, 2030, the rate shall be reduced to five and
16three-eighths percent on that date.
17 Sec. 105. Section 423.43, subsection 1, paragraph b, Code
182017, is amended to read as follows:
19b. Subsequent to the deposit into the general fund of the
20state and after the transfer of such revenues collected under
21chapter 423B, the department shall transfer one-sixth all of
22the following:
23(1) (a) If the department receives the first certification
24described in section 423.5, revenues equaling one-eighth of one
25percent of the tax imposed by that section shall be transferred
26to the natural resources and outdoor recreation trust fund
27created in section 461.31.
28(b) If the department receives the second certification
29described in section 423.5, revenues equaling two-eighths
30of one percent of the tax imposed by that section shall be
31transferred to the natural resources and outdoor recreation
32trust fund created in section 461.31.
33(c) If the department receives the third certification
34described in section 423.5, revenues equaling three-eighths
35of one percent of the tax imposed by that section shall be
-112-1transferred to the natural resources and outdoor recreation
2trust fund created in section 461.31.
3(2) One-sixthof such remaining revenues to the secure an
4advanced vision for education fund created in section 423F.2.
5This paragraph is repealed December 31, 2029.
6 Sec. 106. NEW SECTION. 461.31A Allocation of trust fund
7moneys to the clean water fund.
8On or after July 1 of each fiscal year and prior to any
9allocations to a trust fund account, an amount shall be
10transferred to the general account of the clean water fund
11created in section 466B.51. The transferred amount shall equal
12the amount credited to the assessment account of the clean
13water fund during prior fiscal years.
14 Sec. 107. Section 461.32, subsection 1, Code 2017, is
15amended to read as follows:
161. A natural resources account is created in the trust
17fund. Twenty-three After the transfer has been made from the
18trust fund to the clean water fund pursuant to section 461.31A,
19twenty-three percent of the remaining moneys credited to the
20trust fund shall be allocated to the trust fund’s natural
21resources account.
22 Sec. 108. Section 461.33, subsection 1, Code 2017, is
23amended to read as follows:
241. A soil conservation and water protection account is
25created in the trust fund. Twenty After the transfer has been
26made from the trust fund to the clean water fund pursuant
27to section 461.31A, twenty percent of the moneys credited to
28the trust fund shall be allocated to the trust fund’s soil
29conservation and water protection account.
30 Sec. 109. Section 461.34, subsection 1, Code 2017, is
31amended to read as follows:
321. A watershed protection account is created in the trust
33fund. Fourteen After the transfer has been made from the trust
34fund to the clean water fund pursuant to section 461.31A,
35fourteen percent of the moneys credited to the trust fund shall
-113-1be allocated to the trust fund’s watershed protection account.
2 Sec. 110. Section 461.35, Code 2017, is amended to read as
3follows:
4461.35 Iowa resources enhancement and protection fund —
5allocation.
6Thirteen After the transfer has been made from the trust fund
7to the clean water fund pursuant to section 461.31A, thirteen
8 percent of the moneys credited to the trust fund shall be
9allocated to the Iowa resources enhancement and protection fund
10created in section 455A.18 for further allocation as provided
11in section 455A.19.
12 Sec. 111. Section 461.36, subsection 1, Code 2017, is
13amended to read as follows:
141. A local conservation partnership account is created in
15the trust fund. Thirteen After the transfer from the trust
16fund has been made to the clean water fund pursuant to section
17461.31A, thirteen percent of the moneys credited to the trust
18fund shall be allocated to the trust fund’s local conservation
19partnership account.
20 Sec. 112. Section 461.37, subsection 1, Code 2017, is
21amended to read as follows:
221. A trails account is created in the trust fund. Ten
23 After the transfer from the trust fund has been made to the
24clean water fund pursuant to section 461.31A, ten percent of
25the moneys credited to the trust fund shall be allocated to the
26trust fund’s trails account.
27 Sec. 113. Section 461.38, subsection 1, Code 2017, is
28amended to read as follows:
291. A lake restoration account is created in the trust fund.
30Seven After the transfer from the trust fund has been made to
31the clean water fund pursuant to section 461.31A, ten percent
32of the moneys credited to the trust fund shall be allocated to
33the account.
34 Sec. 114. Section 466A.3, subsection 1, unnumbered
35paragraph 1, Code 2017, is amended to read as follows:
-114- 1A watershed improvement review board is established. The
2board shall advise the clean water commission created in
3section 466B.52.
4 Sec. 115. Section 466A.3, subsection 4, unnumbered
5paragraph 1, Code 2017, is amended to read as follows:
6The watershed improvement review board shall carry out
7the purposes of this chapter as provided in section 466A.2,
8including by determining how moneys are to be expended from
9the watershed improvement fund and authorizing the expenditure
10of moneys from the fund. In carrying out those purposes, and
11acting upon direction of the clean water commission, the board
12shall do all of the following:
13 Sec. 116. Section 466A.5, Code 2017, is amended to read as
14follows:
15466A.5 Administration.
161. The division of soil conservation and water quality
17created within the department of agriculture and land
18stewardship pursuant to section 159.5 shall provide
19administrative support to the board. The division shall
20administer this chapter under the oversight of the clean water
21commission created in section 466B.52.
222. Not more than one percent of the total moneys deposited
23in the general account of the watershed improvement fund on
24July 1 of a fiscal year or fifty thousand dollars, whichever is
25less, is appropriated each fiscal year to the division for the
26purposes of assisting the watershed improvement review board
27in administering this chapter.
28 Sec. 117. Section 466B.2, Code 2017, is amended by adding
29the following new subsections:
30 NEW SUBSECTION. 01. “Commission” means the clean water
31commission created in section 466B.52.
32 NEW SUBSECTION. 2A. “Iowa nutrient reduction strategy”
33means the latest version of the document entitled “Iowa
34Nutrient Reduction Strategy” initially presented in 2012 by the
35department of agriculture and land stewardship, the department
-115-1of natural resources, and Iowa state university of science and
2technology.
3 Sec. 118. Section 466B.3, subsections 1 and 2, Code 2017,
4are amended to read as follows:
51. Council established. A water resources coordinating
6council is established within the department of agriculture
7and land stewardship. The council shall carry out the
8powers and duties described in this section in accordance
9with the policies and under the direction and supervision of
10the commission. The council shall advise the commission as
11required by the commission.
122. Purpose. The purpose of the council shall be to advise
13the commission regarding strategies and methods to preserve
14and protect Iowa’s water resources, and to coordinate the
15management of those resources in a sustainable and fiscally
16responsible manner. In the pursuit of this purpose providing
17advice to the commission and acting in accordance with its
18policies, and under its direction and supervision, the
19council shall use an integrated approach to water resource
20management, recognizing that insufficiencies exist in current
21approaches and practices, as well as in funding sources and
22the utilization of funds. The integrated approach used by the
23council shall attempt to overcome old categories, labels, and
24obstacles with the primary goal of managing the state’s water
25resources comprehensively rather than compartmentally.
26 Sec. 119. Section 466B.3, subsection 3, unnumbered
27paragraph 1, Code 2017, is amended to read as follows:
28The success of the council’s efforts made under this section
29 shall ultimately be measured by the following outcomes:
30 Sec. 120. Section 466B.3, subsection 6, paragraph c, Code
312017, is amended to read as follows:
32c. The council, acting in accordance with the policies and
33under the direction and supervision of the commission, shall
34develop recommendations for policies and funding promoting a
35watershed management approach to reduce the adverse impact
-116-1of future flooding on this state’s residents, businesses,
2communities, and soil and water quality. The council and the
3commission shall consider policies and funding options for
4various strategies to reduce the impact of flooding, including
5but not limited to additional floodplain regulation; wetland
6protection, restoration, and construction; the promulgation and
7implementation of statewide storm water management standards;
8conservation easements and other land management; perennial
9ground cover and other agricultural conservation practices;
10pervious pavement, bioswales, and other urban conservation
11practices; and permanent or temporary water retention
12structures. In developing recommendations, the council and
13the commission shall consult with hydrological and land use
14experts, representatives of cities, counties, drainage and
15levee districts, agricultural interests, and soil and water
16conservation districts, and other urban and regional planning
17experts.
18 Sec. 121. Section 466B.31, subsection 1, Code 2017, is
19amended to read as follows:
201. a. A watershed planning advisory council is established
21for purposes of assembling a diverse group of stakeholders
22to review research and make recommendations to various state
23entities regarding methods to protect water resources in the
24state, assure an adequate supply of water, mitigate and prevent
25floods, and coordinate the management of those resources in
26a sustainable, fiscally responsible, and environmentally
27responsible manner.
28b. The council shall carry out the powers and duties
29described in this section in accordance with the policies
30and under the direction and supervision of the commission.
31The council shall advise the commission as required by the
32commission.
33c. The advisory commission shall supervise the council may
34seek in seeking input from councils of governments or other
35organizations in the development of its recommendations. The
-117-1advisory council shall meet once a year and at other times as
2deemed necessary to meet the requirements of this section.
3The advisory council may appoint a task force to assist the
4advisory council in completing its duties.
5 Sec. 122. Section 466B.31, subsection 3, unnumbered
6paragraph 1, Code 2017, is amended to read as follows:
7By December 1 of each year, the watershed planning advisory
8council with approval by the commission shall submit a report
9to the governor, the general assembly, the department of
10agriculture and land stewardship, the department of natural
11resources, and the water resources coordinating council. The
12report shall include recommendations regarding all of the
13following:
14 Sec. 123. Section 466B.42, Code 2017, is amended to read as
15follows:
16466B.42 Water quality initiative.
17The division shall establish a A water quality initiative
18is established in order to assess and reduce nutrients in this
19state’s watersheds, including subwatersheds, and regional
20watersheds. The division commission shall establish oversee
21 and the division, acting in accordance with the policies
22and under the direction and supervision of the commission,
23shall administer the water quality initiative and advise
24the commission as required by the commission. As part of
25the initiative, the division shall administer projects to
26reduce nutrients in surface waters from nonpoint sources
27in a scientific, reasonable, and cost-effective manner.
28The commission and the division shall utilize a pragmatic,
29strategic, and coordinated approach with the goal of
30accomplishing reductions over time.
31 Sec. 124. NEW SECTION. 466B.51 Clean water fund.
321. A clean water fund is created in the state treasury
33under the management and control of the clean water commission.
34The clean water fund is composed of a general account, an
35assessment account, and an expenditures account.
-118- 12. The clean water fund’s general account includes moneys
2transferred from the natural resources and outdoor recreation
3trust fund pursuant to section 461.31A, moneys appropriated
4to the general account from the general assembly, and other
5moneys available to and obtained or accepted by the commission,
6including moneys from public or private sources. However, the
7general account shall not include moneys transferred from a
8commodity organization as described in subsection 3. Except as
9provided in subsection 3, all moneys received by the commission
10for deposit into the clean water fund shall be credited to the
11general account.
123. The clean water fund’s assessment account includes the
13following moneys collected and transferred to the account from
14the following commodity organizations:
15a. The Iowa dairy industry commission as established in
16chapter 179 or the Iowa state dairy association as recognized
17in that chapter, which shall transfer moneys collected from the
18state assessment for clean water as provided in that chapter,
19including section 179.5.
20b. The Iowa beef cattle producers association as established
21in chapter 181 which shall transfer moneys from the state
22assessment as provided in that chapter, including section
23181.13.
24c. The Iowa sheep and wool promotion board established
25pursuant to chapter 182 which shall transfer moneys from the
26state assessment as provided in that chapter, including section
27182.18.
28d. The Iowa pork producers council as established in chapter
29183A, or the Iowa pork producers association as recognized
30in that chapter, which shall transfer moneys from the state
31assessment as provided in that chapter, including section
32183A.7.
33e. The Iowa egg council as established in chapter 184 which
34shall transfer moneys from the state assessment as provided in
35that chapter, including section 184.13.
-119- 1f. The Iowa turkey marketing council as established in
2chapter 184A which shall transfer moneys from the state
3assessment as provided in that chapter, including section
4184A.4.
5g. The Iowa soybean association as recognized in chapter
6185 which shall transfer moneys from the state assessment as
7provided in that chapter, including section 185.26.
8h. The Iowa corn promotion board as established in chapter
9185C which shall transfer moneys from the state assessment as
10provided in that chapter, including section 185C.26.
114. The clean water fund’s expenditures account only
12includes moneys transferred from the general account and the
13state assessment account as provided in this section.
145. a. Moneys in the clean water fund shall not be used for
15any purpose other than described in this section.
16b. Moneys in the general account shall not be used for any
17purpose other than for transfer to the expenditures account.
18c. Moneys in the assessment account shall not be used for
19any purpose other than to do the following:
20(1) Pay administrative expenses which are limited to all of
21the following:
22(a) Reimbursing the department of agriculture and land
23stewardship or a commodity organization for all reasonable
24costs of conducting a referendum to determine if a state
25assessment for clean water is to be established, continued, or
26terminated. The division shall apply to the executive council
27if necessary to receive moneys required to pay for reasonable
28costs of conducting a referendum as provided in section 7D.10B.
29(b) Remitting refunds of moneys to persons who have paid a
30state assessment for clean water to a commodity organization,
31if the application for a refund has been approved by the
32commodity organization and submitted to the department as
33required by the division of soil conservation and water
34quality.
35(c) Paying reasonable expenses associated with the
-120-1collection and transfer of moneys associated with the
2collection of the state assessment for clean water and the
3processing of refund applications associated with such
4collection.
5(d) Transfer remaining moneys to the expenditures account
6as provided in this section.
76. Moneys in the fund’s expenditures account shall be
8expended by the clean water commission to support programs
9and projects administered to improve the state’s watersheds
10and surface waters, including but not limited to projects
11associated with the water quality initiative established
12pursuant to section 466B.42. Moneys in the expenditures
13account shall be used to support soil conservation and
14watershed protection, the installation of conservation
15practices and watershed protection improvements as provided
16in chapters 161A, 161C, 461A, 466, and 466A. Moneys in the
17expenditures account shall also be used to support water
18quality programs and projects administered by the Iowa finance
19authority under chapter 16.
207. Notwithstanding section 8.33, moneys in the clean
21water fund shall not revert. Notwithstanding section 12C.7,
22subsection 2, interest or earnings on moneys in the fund shall
23be credited to the fund.
24 Sec. 125. NEW SECTION. 466B.52 Clean water commission —
25appointment and administration.
261. A clean water commission is created which shall be housed
27in the division of soil conservation and water quality of the
28department of agriculture and land stewardship.
292. The commission shall be comprised of nine voting members
30appointed by the governor.
313. The commission shall also be comprised of four
32legislative members who shall serve in a nonvoting, ex officio
33capacity. The legislative members shall include all of the
34following:
35a. Two members of the senate. One senator shall be
-121-1appointed by the majority leader of the senate and one senator
2shall be appointed by the minority leader of the senate.
3b. Two members of the house of representatives. One
4member shall be appointed by the speaker of the house of
5representatives and one member shall be appointed by the
6minority leader of the house of representatives.
74. The commission shall also be comprised of persons
8appointed by commodity organizations described in section
9466B.51 who shall serve in a nonvoting, ex officio capacity.
10Each commodity organization may appoint one person if producers
11who are members of the commodity organization have approved
12the establishment of a state assessment for clean water to be
13transferred to the clean water fund created in section 466B.51.
145. Voting members shall serve four-year terms and may be
15reappointed. The initial terms of the voting members shall
16be staggered at the discretion of the governor. Nonvoting
17members shall serve at the pleasure of the persons or commodity
18organizations making their appointments.
196. Sections 69.16, 69.16A, and 69.19 shall apply to the
20voting members. The voting members are subject to senate
21confirmation.
227. a. A member, other than a legislative member, is
23eligible to receive compensation as provided in section 7E.6,
24and shall be reimbursed for actual and necessary expenses
25incurred in performance of the members’ duties. All expenses
26shall be paid from appropriations for such purposes and the
27commission shall be subject to the budget requirements of
28chapter 8.
29b. A legislative member serves for a term as provided in
30section 69.16B and is eligible for per diem and expenses as
31provided in section 2.10.
328. The commission shall meet in January of each year for the
33purpose of electing one of its voting members as chairperson.
349. The commission shall meet on a regular basis and at the
35call of the chairperson or upon the written request to the
-122-1chairperson of five or more voting members. Written notice
2of the time and place of the meeting shall be given to each
3member.
410. A majority of voting members constitutes a quorum,
5and the affirmative vote of a majority of the voting members
6is necessary for any action taken by the board, except that a
7lesser number may adjourn a meeting.
811. Any vacancy in the membership of the commission shall
9be filled in the same manner as regular appointments are made
10for the unexpired portion of the regular term. A vacancy in
11the membership of the commission does not impair the rights of
12a quorum to exercise all rights and perform all duties of the
13commission.
1412. A person shall not serve as a member of the commission
15if the person has an interest in a contract or job of work or
16material or the profits thereof or service to be performed
17for the department of agriculture and land stewardship or
18department of natural resources. Any member of the commission
19who accepts employment with or acquires any stock, bonds, or
20other interest in any company or corporation doing business
21with the department of agriculture and land stewardship or the
22department of natural resources shall be disqualified from
23remaining a member of the commission.
2413. The department of agriculture and land stewardship in
25cooperation with the department of natural resources shall
26assist the commission by doing all of the following:
27a. Provide the commission with necessary facilities, items,
28and clerical support.
29b. Perform administrative functions necessary for the
30management of the commission.
31 Sec. 126. NEW SECTION. 466B.53 Clean water commission —
32powers and duties.
331. The purpose of the clean water commission shall be to
34identify and finance methods to improve surface water quality,
35including by reducing contributing contaminant loads to
-123-1receiving surface waters and reducing soil erosion and sediment
2loss.
32. In furthering the purpose set forth in subsection 1, the
4clean water commission shall do all of the following:
5a. Develop comprehensive water quality policies and plans,
6that identify existing plans, programs, and projects. The
7commission shall use existing data and amend, augment, and
8consolidate existing plans or strategies which have improved or
9which promise to improve water quality.
10b. Identify additional water quality improvement needs on a
11watershed basis, including the need to develop new or innovate
12programs or projects.
13c. Measure the effectiveness and results of programs and
14projects according to performance measures and associated
15benchmarks. The data demonstrating accountability collected by
16the department shall be made readily available and maintained
17in a computer-readable format.
183. The clean water commission shall establish objectives
19of programs described in subsection 2 to be achieved by
20dates identified by the commission which may include program
21timelines and milestones. The commission shall measure and
22monitor progress toward achieving program objectives.
234. The commission shall develop comprehensive water quality
24policies and plans, that integrate existing plans, programs,
25and projects in accordance with the Iowa nutrient reduction
26strategy. The commission shall use existing data and amend,
27augment, and consolidate existing plans or strategies which
28have improved or which promise to improve water quality.
29The commission shall also develop new comprehensive water
30quality policies and plans, that integrate existing plans,
31programs, and projects. The information collected by the
32department shall be made readily available and maintained in a
33computer-readable format.
345. The commission shall identify additional water quality
35improvement needs on a watershed basis, including the need to
-124-1develop new or innovate programs or projects.
26. By October 1, 2019, and by October 1 of each year
3thereafter, the commission shall submit a report to the
4governor and the general assembly used to support the programs
5described in subsection 2. A report shall include all of the
6following:
7a. A description and update of the current status of water
8quality programs and associated projects, and the expenditure
9of moneys appropriated to support the programs and associated
10projects administered by state entities, including but not
11limited to the department of agriculture and land stewardship,
12the department of natural resources, Iowa state university
13of science and technology, the Iowa finance authority, and
14watershed management authorities.
15b. An evaluation of the successes and failures of a
16water quality program and any associated project in meeting
17the program’s objectives. The report shall include any
18legislative proposals to enact, amend, or repeal statutes and
19any administrative proposals to adopt, revise, or rescind
20administrative rules.
217. The Iowa finance authority, the department of natural
22resources, and the department of agriculture and land
23stewardship shall cooperate with the commission in providing
24the commission with all information necessary for the
25commission to carry out the provisions of this section.
26 Sec. 127. NEW SECTION. 466B.54 Clean water commission —
27study.
281. The clean water commission, in cooperation with the
29department of agriculture and land stewardship, the department
30of natural resources, and the Iowa finance authority shall
31prepare and submit a clean water evaluation and expenditure
32report to the governor and general assembly by January 15,
332018.
342. The clean water evaluation and expenditure report shall
35include all of the following:
-125- 1a. A description of current clean water programs and
2projects, and the expenditure of moneys appropriated to
3support those programs and projects. The report shall evaluate
4successes and failures of each program and project in meeting
5water quality objectives. The report may also recommend
6methods to improve the program.
7b. A plan for allocating moneys in the expenditures account
8of the clean water fund created in section 466B.51. The plan
9shall include a formula which takes into account the extent to
10which moneys may be used for all of the following:
11(1) Watersheds requiring immediate improved surface water
12quality.
13(2) The establishment of infrastructure, conservation
14measures, and practices that reduce contributing nutrient
15loads, associated sediment, or contaminants from nonpoint
16sources to surface waters in a scientific, reasonable, and
17cost-effective manner.
18(3) The administration of programs or projects in a manner
19that is consistent with the Iowa nutrient reduction strategy.
20(4) The degree to which political subdivisions or
21stakeholders have demonstrated a willingness and have the
22resources to participate in programs or projects.
23(5) The degree to which clean water programs can attract
24additional funding from private and public sources including
25federal funding.
263. The clean water evaluation and expenditure report shall
27include a detailed plan for consolidating all water quality
28and soil conservation initiatives and programs and associated
29projects administered by the department of agriculture and
30land stewardship, the department of natural resources, and the
31Iowa finance authority under the overall supervision of the
32commission. The plan shall include any legislative proposals
33to enact, amend, or repeal statutes and any administrative
34proposals to adopt, revise, or rescind administrative rules.
35 Sec. 128. NEW SECTION. 466B.55 Secretary of agriculture,
-126-1treasurer of state, and auditor of state — certifications.
21. By March 1 of each fiscal year, the secretary of
3agriculture, the treasurer of state, and the auditor of
4state shall meet to verify whether one or more commodity
5organizations are collecting a clean water assessment as
6described in section 466B.51. The secretary of agriculture
7shall prepare a certification for delivery to the Iowa
8administrative code editor for publication in the Iowa
9administrative bulletin.
102. By March 1 of each fiscal year, the secretary of
11agriculture, the treasurer of state, and the auditor of state
12shall together verify the total amount of moneys collected
13by all commodity organizations certified under subsection 1
14during the preceding fiscal year. If a commodity organization
15was certified after the end of the preceding fiscal year, the
16commodity organization shall be deemed to have collected a
17clean water assessment at the rate in effect on the date of the
18commodity organization’s certification.
193. By April 1 of each fiscal year when the secretary of
20agriculture, the treasurer of state, and the auditor of state
21verify that during the preceding fiscal year twenty million
22dollars was collected by all commodity organizations under
23subsection 2, the secretary of agriculture shall prepare a
24certification for delivery to all of the following:
25a. The director of revenue.
26b. The administrative code editor who shall publish the
27certification in the Iowa administrative bulletin.
28c. The Iowa Code editor.
294. This section is repealed on July 1 of the fiscal year in
30which the secretary of agriculture prepares and delivers the
31third certification as required in subsection 3.
32DIVISION X
33ADMINISTRATION
34 Sec. 129. NAME CHANGE TO REFERENDUM FOR DIRECT USE. Nothing
35in this Act requires the department of agriculture and land
-127-1stewardship or a commodity organization described in section
2466B.51, as enacted in this Act, to conduct a referendum
3because of this Act’s reference to a referendum as a referendum
4for direct use.
5EXPLANATION
6The inclusion of this explanation does not constitute agreement with
7the explanation’s substance by the members of the general assembly.
8This bill relates to agricultural commodity organizations
9representing producers of that commodity that are authorized
10to impose an excise tax or “assessment” (and commonly
11referred to as a “checkoff”) on the commodity when first
12sold by the producer to a first purchaser. The goal of the
13assessment is to fund promotional activities which involve
14market development, research, and education. The commodity
15organizations include the Iowa dairy industry commission or
16Iowa state dairy association (Code chapter 179), Iowa beef
17cattle producers association (Code chapter 181), Iowa sheep and
18wool promotion board (Code chapter 182), Iowa pork producers
19council or Iowa pork producers association (Code chapter 183A),
20Iowa egg council (Code chapter 184), the Iowa turkey marketing
21council (Code chapter 184A), the Iowa soybean association
22(Code chapter 185), and the Iowa corn promotion board (Code
23chapter 185C). The bill requires a commodity organization
24to establish a separate state assessment for clean water, if
25approved by a majority of its members at a referendum. The
26bill also requires commodity organizations to conduct a special
27referendum to increase the rate of the assessment for clean
28water. The rate of the state assessment is established by the
29governing body of the commodity organization not to exceed the
30assessment for direct use or national assessment or both. The
31referendum would be conducted in the same manner as an initial
32or special referendum conducted by the commodity organization
33under its specific Code chapter. The special assessment could
34be continued or terminated in the same manner as the commodity
35organization’s assessment for promotional activities. Moneys
-128-1from the state assessment would be collected by the commodity
2organization and transferred to a newly created clean water
3fund.
4The bill establishes a clean water commission housed in
5the division of soil conservation and water quality of the
6department of agriculture and land stewardship. The commission
7is composed of nine voting members appointed by the governor,
8four legislative members who serve in a nonvoting, ex officio
9capacity, and persons appointed by the commodity organizations,
10who also serve in a nonvoting, ex officio capacity.
11Appointments are contingent on the commodity organization
12having approved the establishment of a state assessment for
13clean water to be transferred to the clean water fund. The
14purpose of the commission is to finance methods to improve
15surface water quality, including by reducing contributing
16contaminant loads to receiving surface waters and reducing soil
17erosion and sediment loss. The commission is responsible for
18overseeing the water quality initiative as administered by the
19division of soil conservation and water quality.
20Moneys collected from the state assessment are to be
21credited to the clean water fund which is under the supervision
22of the commission. The fund is composed of a general
23account, an assessment account, and an expenditures account.
24The fund’s general account includes moneys transferred
25from the constitutionally protected natural resources and
26outdoor recreation trust fund (Code section 461.31), moneys
27appropriated by the general assembly, and other moneys
28available to and obtained or accepted by the commission.
29Moneys collected from the state assessment are to be credited
30to the assessment account. The bill also includes an
31expenditures account which only includes moneys transferred
32from the general account and the assessment account for
33purposes of financing methods to improve surface water quality.
34Moneys transferred from the assessment account are to be used
35to reimburse the department of agriculture and land stewardship
-129-1or a commodity organization for reasonable costs of conducting
2a referendum to determine if a state assessment for clean water
3is to be established, continued, or terminated. The commission
4can also apply to the executive council for moneys required to
5pay for reasonable costs of conducting a referendum. Moneys
6deposited into the expenditures account may also be used to
7pay refunds to producers who have paid the state assessment
8if the refund application has been approved by the commodity
9organization.
10The bill provides for possible progressive increases
11in state sales and use taxes. An increased amount must be
12credited to the natural resources and outdoor recreation trust
13fund according to a constitutional amendment (Article VII,
14section 10). The amount credited to the fund must be equal
15to the amount generated by an increase in the state sales tax
16rate occurring after the effective date of the constitutional
17amendment, not to exceed a rate of three-eighths of one percent
18(0.375). The state sales tax rate has not been increased since
19November 2, 2010, the date when the constitutional amendment
20was ratified. The bill provides that an increase of one-eighth
21of one percent in the sales tax is triggered each of three
22fiscal years when the secretary of agriculture, the treasurer
23of state, and the auditor of state certify that a total of $20
24million in clean water assessments for that preceding year was
25collected by participating commodity organizations. The bill
26revises the allocations from the natural resources and outdoor
27recreation trust fund as set forth in statute (Code chapter
28461). On July 1 of each fiscal year, an amount of moneys in
29the Code chapter 461 trust fund equal to the amount in the
30clean water fund’s assessment account is to be transferred to
31the clean water fund’s general account. The moneys remaining
32in the Code chapter 461 trust fund are to be allocated on a
33percentage basis as set forth in statute.
34The commission, in cooperation with the department of
35agriculture and land stewardship, the department of natural
-130-1resources, and the Iowa finance authority, must submit a
2report to the governor and general assembly by January 15,
32019, which includes a description of current clean water
4programs and projects and a detailed plan for consolidating all
5water quality and soil conservation initiatives and programs
6and associated projects administered by the department of
7agriculture and land stewardship, the department of natural
8resources, and the Iowa finance authority under the overall
9supervision of the commission.
-131-da/rj
2imposed on agricultural commodities, including establishing
3procedures for referendums to establish, continue, or
4terminate the state assessment, the transfer of moneys to
5the department of agriculture and land stewardship, state
6sales and use taxes, the natural resources and outdoor
7recreation fund, the establishment of a commission and fund
8and the appropriation of moneys.
9BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1DIVISION I
2IOWA DAIRY INDUSTRY COMMISSION AND
3IOWA STATE DAIRY ASSOCIATION
4 Section 1. Section 179.1, Code 2017, is amended by adding
5the following new subsections:
6 NEW SUBSECTION. 01. “Assessment” means an excise tax on the
7sale of milk which may include a state assessment for direct
8use and a state assessment for clean water.
9 NEW SUBSECTION. 2A. “Federal Act” means the Dairy Product
10Stabilization Act of 1983, 7 U.S.C. §4501 et seq.
11 NEW SUBSECTION. 3A. “National assessment” means an excise
12tax on the sale of milk imposed pursuant to the federal Act.
13 NEW SUBSECTION. 10. “Secretary” means the secretary of
14agriculture.
15 Sec. 2. Section 179.1, subsection 2, Code 2017, is amended
16to read as follows:
172. The term “commission” shall mean “Commission” means the
18Iowa dairy industry commission created in section 179.2.
19 Sec. 3. Section 179.2, subsections 4, 5, 6, and 7, Code
202017, are amended to read as follows:
214. a. When a national promotional order is established by
22the United States department of agriculture pursuant to the
23Dairy Product Stabilization Act of 1983 federal Act, collection
24of the excise tax state assessment for direct use described in
25section 179.5 shall be suspended for the period in which the
26national order is in effect. The commission shall continue to
27operate thereafter for only the period of time necessary to pay
28refunds and disburse the funds moneys remaining in the dairy
29industry fund for the purposes enumerated in administering
30 this chapter. Upon completion of these acts, the existence of
31the Iowa dairy industry commission shall be suspended. The
32secretary of agriculture shall certify the suspension of the
33commission as of a date certain to the Iowa dairy industry
34 commission and the Iowa state dairy association. When the
35existence of the commission is suspended, the terms of office
-1-1being served by individual commissioners shall terminate.
2b. The establishment of a national promotional order shall
3not affect the imposition of a state assessment for clean water
4established pursuant to section 179.13A.
55. When the national promotional order expires, the period
6of suspension of the excise tax state assessment for direct use
7established in section 179.5 shall terminate and the secretary
8of agriculture shall take the steps necessary to collect that
9excise tax state assessment and otherwise fulfill the duties of
10the commission, except that of expending funds moneys collected
11under the excise tax that state assessment, until those
12duties can be resumed by the reactivated commission. When the
13national promotional order expires, the period of suspension of
14the commission shall terminate. The secretary of agriculture
15 shall call the first meeting of the reactivated commission.
16Upon reactivation, the commission shall reimburse the secretary
17of agriculture for expenses incurred in carrying out the duties
18provided in this subsection.
196. When the national dairy promotion program expires and
20the suspension of the Iowa dairy industry commission terminates
21pursuant to subsection 5, all first purchasers shall, in a
22manner designed to reflect their proportionate contributions
23to the national dairy promotion program in its most recently
24completed fiscal year, nominate two resident producers for each
25of the sixteen offices of the commission. The secretary of
26agriculture shall then appoint one nominee from each set of
27two nominees as commissioners of the reactivated Iowa dairy
28industry commission. The secretary of agriculture shall
29stagger the terms of the reactivated commission resulting in
30as nearly as possible one third of the commissioners serving
31for one year, one third of the commissioners serving for two
32years, and one third of the commissioners serving for three
33years. After the initial staggering of terms by the secretary,
34commissioners shall be appointed to three-year terms.
357. The establishment or expiration of a national
-2-1promotional order shall not affect the imposition of a state
2assessment for clean water established pursuant to section
3179.13A.
47. 8. After the reactivated commission has been formed,
5nominations for commissioners shall be made by first
6purchasers in a manner designed to reflect their proportionate
7contributions to the Iowa dairy industry commission in its most
8recently completed fiscal year.
9 Sec. 4. Section 179.3, Code 2017, is amended by adding the
10following new subsection:
11 NEW SUBSECTION. 10. To cooperate with the division of soil
12conservation and water quality of the department of agriculture
13and land stewardship in transferring moneys collected from
14the state assessment for clean water to the clean water fund
15created in section 466B.51.
16 Sec. 5. Section 179.4, Code 2017, is amended to read as
17follows:
18179.4 Expenditure of funds Use of moneys.
19Funds collected through Moneys collected by the commission
20from the excise tax are to state assessment for direct use
21imposed pursuant to section 179.5 shall be used for purposes
22of advertising and promotion, product, process, and nutrition,
23dietetics, and physiology research, nutrition education, public
24relations, research and development, and for other activities
25that contribute to producer efficiency and productivity.
26In addition, the commission shall use these funds moneys
27 to maintain existing markets, to make contributions to
28organizations working toward the purposes of this section,
29and to assist in the development of new or enlarged markets
30for milk, both domestic and foreign. The primary purpose for
31use of these funds moneys is to increase consumption of milk.
32The commission may contract for advertising, publicity, sales
33promotion, research, and educational services the committee
34 commission deems appropriate to further the objectives of this
35section.
-3-1 Sec. 6. Section 179.5, Code 2017, is amended to read as
2follows:
3179.5 Excise tax State assessments — administration of
4moneys — appropriation.
51. a. There is levied and imposed an excise tax a state
6assessment for direct use on all producers within the state
7at a rate of three-fourths of one percent of the gross value
8of milk produced in the state and which may be continued by
9special referendum as provided in section 179.13A.
10b. There is imposed a state assessment for clean water on
11all producers within the state at a rate established by the
12commission not to exceed the rate of the state assessment for
13direct use described in paragraph “a”, if the state assessment
14for clean water is established or continued pursuant to section
15179.13A.
162. All taxes levied and The state assessment for direct use
17and the state assessment for clean water imposed under this
18chapter shall be deducted from the sales price received by the
19producer and shall be collected by the first purchaser, except
20as follows:
21a. If the producer produces milk from cows and sells the
22milk directly to the consumer, the taxes each state assessment
23 shall be remitted by that producer.
24b. If the producer sells milk to a first purchaser outside
25the state, the taxes are each state assessment is due and
26payable by that producer before the shipment is made, except
27that the commission may make agreements with extra state
28purchasers for the keeping of records and the collection of the
29taxes each state assessment as necessary to secure the payment
30of the taxes each state assessment within the time fixed by
31this chapter.
323. All taxes levied and The state assessment for direct use
33and the state assessment for clean water if established and
34 imposed under this chapter, and any other contributions made to
35the dairy industry commission, shall be paid to and collected
-4-1by the commission within thirty days after the end of the month
2during which the milk was marketed.
34. The commission shall remit moneys collected from
4 the taxes state assessment for direct use and any other
5contributions obtained by the commission to the treasurer of
6the state each quarter, and at the same time shall render to
7the director of the department of administrative services an
8itemized and verified report showing the source from which
9the taxes moneys collected from the state assessment for
10direct use and voluntary contributions were obtained. All
11taxes moneys collected from the state assessment for direct
12use and voluntary contributions received, collected, and
13remitted by the commission shall be placed in a special fund
14by the treasurer of state and the director of the department
15of administrative services, to be known as the “dairy industry
16fund” to be used by the Iowa dairy industry commission for
17the purposes set out in this chapter and to administer and
18enforce the laws relative to this chapter. The department of
19administrative services shall transfer moneys from the fund
20to the commission for deposit into an account established
21by the commission in a qualified financial institution.
22The department shall transfer the moneys as provided in a
23resolution adopted by the commission. However, the department
24is only required to transfer moneys once during each day and
25only during hours when the offices of the state are open.
26Moneys deposited in the fund and transferred to the commission
27as provided in this section are appropriated and shall be used
28for the purpose of carrying out the provisions of this chapter.
295. The commission may deposit moneys collected from the
30state assessment for clean water in a qualified financial
31institution until transferred to the clean water fund
32created in section 466B.51. During the period when a
33national promotional order is in effect, the Iowa state dairy
34association shall deposit the moneys collected from that
35state assessment in a qualified financial institution until
-5-1transferred to the clean water fund. If the state assessment
2for clean water is terminated as provided in section 179.13A,
3the remaining moneys collected from that state assessment shall
4be immediately transferred to the clean water fund.
56. The commission may require that the invoice also show the
6total amount of any state assessment for direct use deducted
7from the sales price. If a national assessment is being
8collected, the Iowa state dairy association may require that
9the invoice for the national assessment also show the total
10amount of any national assessment, if permitted by federal law.
11If a state assessment for clean water is collected, the first
12purchaser shall furnish the producer at the time of payment an
13invoice showing the total amount of the state assessment for
14clean water deducted from the sales price.
154. 7. a. A person from whom the excise tax provided in
16this chapter a state assessment for direct use is collected
17may, by application filed with the commission within thirty
18days after the collection of the tax state assessment, have the
19tax state assessment refunded to that person by the commission.
20b. If a state assessment for direct use is imposed, a person
21from whom a state assessment for clean water is collected
22may file an application for a refund with the commission.
23The application for a refund shall allow the person to elect
24whether the refund is for the state assessment for direct
25use or the state assessment for clean water or both. The
26commission shall not approve an application unless the
27application indicates the election. The commission shall
28forward an approved application for a refund of the state
29assessment to the division of soil conservation and water
30quality for payment.
31c. If a national assessment is imposed and a refund of the
32national assessment is authorized, a person from whom a state
33assessment for clean water is collected may file an application
34for a refund with the Iowa state dairy association. The
35application shall to the extent allowed by federal law allow
-6-1the person to elect whether the refund is for the national
2assessment or the state assessment for clean water or both.
3The association shall forward the approved application for a
4refund of the state assessment for clean water to the division
5of soil conservation and water quality for payment.
6 Sec. 7. Section 179.6, Code 2017, is amended to read as
7follows:
8179.6 Records of producers, first purchasers.
9Every producer shipping milk to a first purchaser outside of
10Iowa who is not by agreement with the commission collecting the
11tax state assessment for direct use or the state assessment for
12clean water imposed by this chapter, and every first purchaser
13within the state, and every producer distributing milk directly
14to the consumer, shall keep a complete and accurate record of
15all milk produced or purchased by the person during the period
16for which an excise tax levy a state assessment is imposed
17under this chapter. The records shall be in the form and
18contain the information prescribed by the commission, shall be
19preserved by the person charged with their making for a period
20of two years, and shall be offered or submitted for inspection
21at any time upon written or oral request by the commission or
22its duly authorized agent or employee.
23 Sec. 8. Section 179.8, Code 2017, is amended to read as
24follows:
25179.8 Payment of expenses — limitation.
261. No part of the expense incurred by the commission
27shall be paid out of moneys in the state treasury except
28moneys transferred to the commission from the dairy industry
29fund. Moneys transferred from the fund to the commission, as
30provided in section 179.5, shall be used for the payment of
31all salaries, and other expenses necessary, to carry out the
32provisions of this chapter. However, in no event shall the
33total expenses exceed the total taxes amount collected from the
34state assessment for direct use collected and transferred from
35the fund to the commission.
-7- 12. No more than five percent of the excise tax collected
2 moneys collected from the state assessment for direct use and
3received by the commission pursuant to section 179.5 shall be
4utilized for administrative expenses of the commission.
5 Sec. 9. Section 179.9, Code 2017, is amended to read as
6follows:
7179.9 Investigations by commission.
8The commission shall have the power to cause its authorized
9agents to enter upon the premises of any person charged by this
10chapter or by agreement with the commission with the collection
11of the excise tax a state assessment for direct use or a state
12assessment for clean water imposed by this chapter, and to
13cause to be examined by any such agent any books, records,
14documents, or other instruments bearing upon the amount of
15moneys from such tax state assessment collected or to be
16collected by such person; provided that the commission has
17reasonable ground to believe that all moneys from the tax state
18assessments herein levied has imposed have not been collected,
19or if it has they have not been fully accounted for as herein
20provided.
21 Sec. 10. Section 179.10, Code 2017, is amended to read as
22follows:
23179.10 Report.
24The commission shall each year prepare and submit a report
25summarizing the activities of the commission under this chapter
26to the auditor of state and the secretary of agriculture. The
27report shall show all income, expenses, and other relevant
28information concerning fees the state assessment for direct
29use collected and expended under this chapter. The report
30shall also show the collection and transfer of moneys received
31from any state assessment for clean water imposed under this
32chapter.
33 Sec. 11. Section 179.13, Code 2017, is amended to read as
34follows:
35179.13 Referendum Initial referendum.
-8- 11. a. At a time designated by the commission within
2eighteen months after termination of the national promotional
3order made pursuant to the Dairy Product Stabilization
4 federal Act of 1983, the commission shall conduct a an initial
5 referendum under administrative procedures prescribed by the
6department.
7b. Upon signing a statement certifying to the department
8that the person is a bona fide producer as defined in this
9chapter, each producer is entitled to one vote in each initial
10 referendum. When the secretary is required to determine the
11approval or disapproval of producers under this section, the
12secretary shall consider the approval or disapproval of a
13cooperative association of producers, engaged in a bona fide
14manner in marketing milk, as the approval or disapproval of the
15producers who are members of or contract with the cooperative
16association of producers. If a cooperative association
17elects to vote on behalf of its members, the cooperative
18association shall provide each producer on whose behalf the
19cooperative association is expressing approval or disapproval
20with a description of the question presented in the initial
21 referendum together with a statement of the manner in which
22the cooperative association intends to cast its vote on behalf
23of the membership. The information shall inform the producer
24of procedures to follow to cast an individual ballot if the
25producer chooses to do so within the period of time established
26by the secretary for casting ballots. The notification shall
27be made at least thirty days prior to the initial referendum
28and shall include an official ballot. The ballots shall be
29tabulated by the secretary and the vote of the cooperative
30association shall be adjusted to reflect the individual votes.
31c. The department shall count and tabulate the ballots
32filed during the initial referendum within thirty days of the
33close of the initial referendum. If from the tabulation the
34department determines that a majority of the total number of
35producers voting in the initial referendum favors the proposal,
-9-1the excise tax state assessment for direct use provided for in
2this chapter shall be continued. The ballots cast pursuant
3to this section constitute complete and conclusive evidence
4for use in determinations made by the department under this
5chapter.
62. The secretary may conduct a special referendum at any
7time after the Iowa dairy industry commission is reactivated,
8and shall hold a conduct a special referendum on request upon
9receiving a petition of a representative group comprising ten
10percent or more of the number of producers eligible to vote,
11to determine whether the producers favor the termination or
12 suspension or termination of the excise tax state assessment
13for direct use. The secretary shall suspend or terminate
14collection of the excise tax within state assessment for direct
15use no later than six months after the secretary determines
16that suspension or termination of the excise tax state
17assessment is favored by a majority of the producers voting
18in the special referendum, and shall suspend or terminate the
19excise tax state assessment in an orderly manner as soon as
20practicable after the determination.
21 Sec. 12. NEW SECTION. 179.13A Referendums and special
22questions — establishment, increase, or termination of a state
23assessment.
241. a. If a state assessment for direct use is established,
25and upon receipt of a petition of producers that otherwise
26complies with requirements to conduct an initial referendum
27under section 179.13, subsection 1, the secretary shall conduct
28a special referendum to determine whether to establish a state
29assessment for clean water.
30b. Upon receipt of a petition of producers that otherwise
31complies with requirements to conduct an initial referendum
32under section 179.13, the secretary shall include as part of
33the initial referendum conducted pursuant to section 179.13,
34subsection 1, a separate special question whether to establish
35a state assessment for clean water, if the secretary determines
-10-1the inclusion of the special question is cost-effective or the
2petition demands inclusion.
3c. The secretary shall conduct the special referendum under
4this subsection or include the special question as part of an
5initial or special referendum conducted under section 179.13,
6subsection 1, in consultation with the commission and which
7may be based on the same procedures for conducting an initial
8referendum under section 179.13.
9d. If the secretary determines that the establishment of
10a state assessment for clean water is favored by a majority
11of the producers voting in a special referendum under this
12subsection or in an initial referendum conducted under section
13179.13, subsection 1, that includes a special question as
14provided in paragraph “b”, the state assessment shall commence
15on a date determined by the secretary after consultation with
16the commission but not later than six months after the date
17that the special or initial referendum was conducted.
182. a. If a national assessment is being collected, and upon
19receipt of a petition of producers that otherwise complies with
20requirements to conduct an initial referendum under section
21179.13, subsection 1, the secretary shall conduct a special
22referendum to determine whether to establish a state assessment
23for clean water.
24b. Upon receipt of a petition of producers that otherwise
25complies with requirements to conduct an initial referendum
26under section 179.13, subsection 1, the secretary shall include
27as part of the referendum to establish a national assessment,
28a separate special question whether to establish a state
29assessment for clean water, if the secretary determines the
30inclusion of the special question complies with federal law and
31either is cost-effective or the petition demands inclusion.
32c. The secretary shall conduct the special referendum under
33this subsection or include the special question as part of a
34referendum to establish a national referendum in consultation
35with the Iowa state dairy association and which may be based on
-11-1the same procedures for conducting an initial referendum under
2section 179.13, subsection 1, or a referendum to establish a
3national assessment.
4d. If the secretary determines that the establishment of a
5state assessment for clean water is favored by a majority of
6the producers voting in a special referendum conducted under
7paragraph “a” or a referendum to establish a national assessment
8that includes a special question as provided in paragraph “b”,
9the state assessment shall commence on a date determined by
10the secretary after consultation with the Iowa state dairy
11association but not later than six months after the date that
12the special referendum or referendum establishing a national
13assessment was conducted.
143. a. If the rate of the national assessment has been
15increased, and upon receipt of a petition of producers that
16otherwise complies with requirements to conduct an initial
17referendum under section 179.13, subsection 1, the secretary
18shall conduct a special referendum to determine whether to
19increase the rate of the state assessment for clean water to
20a rate established by the Iowa state dairy association not to
21exceed the rate of the national assessment.
22b. Upon receipt of a petition of producers that otherwise
23complies with requirements to conduct an initial referendum
24under section 179.13, subsection 1, the secretary shall include
25as part of a referendum to increase the rate of the national
26assessment, a separate special question whether to increase
27the rate of the state assessment for clean water at a rate
28established by the Iowa state dairy association not to exceed
29the increase in the national assessment, if the secretary
30determines the inclusion of the special question complies
31with federal law and is either cost-effective or the petition
32demands inclusion.
33c. The secretary shall conduct the special referendum under
34this subsection, or include the special question as part of a
35referendum to increase the national assessment, in consultation
-12-1with the Iowa state dairy association and which may be based on
2the same procedures for conducting an initial referendum under
3section 179.13, subsection 1, or a referendum to increase the
4rate of the national assessment.
5d. If the national assessment is increased, and the
6secretary determines that an increase in the state assessment
7for clean water is favored by a majority of the producers
8voting in a special referendum or referendum to increase
9the rate of the national assessment, the rate of the state
10assessment shall be increased on a date determined by the
11secretary after consultation with the Iowa state dairy
12association but not later than six months after the date that
13the special referendum or referendum establishing a national
14assessment was conducted. If a special referendum or special
15question to increase the rate of the state assessment for clean
16water does not pass, the result of the vote shall not affect
17the existence or length of the period when the state assessment
18is in effect.
194. a. If a state assessment for direct use is imposed,
20and upon receipt of a petition of producers that otherwise
21complies with requirements to conduct a special referendum
22under section 179.13, subsection 2, the secretary shall conduct
23a special referendum to determine whether to terminate the
24state assessment for clean water.
25b. Upon receipt of a petition of producers that otherwise
26complies with requirements to conduct a special referendum
27under section 179.13, subsection 2, the secretary shall include
28as part of a special referendum to suspend or terminate the
29state assessment for direct use conducted pursuant to section
30179.13, subsection 2, a separate special question whether
31to terminate the state assessment for clean water, if the
32secretary determines the inclusion of the special question is
33cost-effective or the petition demands inclusion.
34c. The secretary shall conduct the special referendum under
35this subsection or include the special question as part of a
-13-1special referendum conducted under section 179.13, subsection
22, in consultation with the commission and which may be based
3on the same procedures for conducting a special referendum
4under section 179.13, subsection 2.
5d. If the secretary determines that the termination of
6a state assessment for clean water is favored by a majority
7of the producers voting in a special referendum under this
8subsection, or a special referendum conducted under section
9179.13, subsection 2, the state assessment shall terminate on a
10date determined by the secretary after consultation with the
11commission but not later than six months after the date that
12the special or initial referendum was conducted. The secretary
13shall terminate the state assessment in an orderly manner as
14soon as practical.
155. The secretary shall terminate the state assessment for
16clean water upon determining that the state assessment for
17direct use and the national assessment are terminated. The
18secretary shall terminate the state assessment for clean water
19in an orderly manner as soon as practical.
20DIVISION II
21IOWA BEEF CATTLE PRODUCERS ASSOCIATION — EXECUTIVE COMMITTEE
22 Sec. 13. Section 181.1, subsection 10, Code 2017, is amended
23to read as follows:
2410. “State assessment” means an excise tax on the sale of
25cattle imposed pursuant to this chapter which may include a
26state assessment for direct use and a state assessment for
27clean water.
28 Sec. 14. Section 181.2, Code 2017, is amended by adding the
29following new subsection:
30 NEW SUBSECTION. 5. Cooperate with the division of soil
31conservation and water quality of the department of agriculture
32and land stewardship in transferring moneys collected from
33the state assessment for clean water to the clean water
34fund created in section 466B.51 and for being reimbursed for
35reasonable expenses incurred in conducting an initial or
-14-1special referendum to establish, continue, or terminate a state
2assessment for clean water.
3 Sec. 15. Section 181.7A, Code 2017, is amended to read as
4follows:
5181.7A Commencement of federal assessment — suspension and
6recommencement of state assessment — rate.
71. Prior to the commencement of the collection of
8the federal assessment, the executive committee may seek
9certification as a qualified state beef council within the
10meaning of the federal Act.
112. The executive committee shall suspend the state
12assessment for direct use upon collection of the federal
13assessment. The state assessment for direct use shall
14recommence upon the earlier of the following:
15a. The noncollection of the federal assessment. The
16recommenced state assessment for direct use shall be imposed
17for a four-year period. Its effective date shall be the first
18date for which the federal assessment is not collected.
19b. The passage of a special referendum pursuant to section
20181.19 regardless of whether a federal assessment is being
21collected.
223. The rate of the recommenced state assessment shall be the
23same as the rate that was last in effect under section 181.19
24immediately prior to the suspension of the state assessment.
254. The state assessment for clean water shall continue to be
26imposed during any period of suspension of the state assessment
27for direct use so long as the state assessment for clean water
28is not terminated pursuant to section 181.19A.
29 Sec. 16. Section 181.8, Code 2017, is amended to read as
30follows:
31181.8 Executive committee — entering premises — examining
32records.
33The executive committee may authorize its agents to enter
34at a reasonable time upon the premises of any purchaser
35charged by this chapter with remitting the a state assessment
-15- 1for direct use or a state assessment for clean water to the
2executive committee, and to. The agents may examine records
3and other instruments relating to the collection of the a state
4assessment. However, the executive committee must first have
5reasonable grounds to believe that the a state assessment has
6not been remitted or fully accounted for.
7 Sec. 17. Section 181.11, Code 2017, is amended to read as
8follows:
9181.11 Collection of state assessment assessments.
101. A state assessment for direct use or a state assessment
11for clean water imposed as provided in this chapter shall be
12levied and collected from the purchaser on each sale of cattle
13at a rate provided in this chapter. The state assessment for
14direct use or a state assessment for clean water shall be
15imposed on any person selling cattle and shall be deducted
16by the purchaser from the price paid to the seller. The
17purchaser, at the time of the sale, shall make and deliver to
18the seller a separate invoice for each sale showing the names
19and addresses of the seller and the purchaser, the number of
20cattle sold, and the date of sale. The purchaser shall forward
21the state assessment for direct use and any state assessment
22for clean water to the executive committee at a time prescribed
23by the executive committee, but not later than the last day of
24the month following the end of the prior reporting period in
25which the cattle are sold.
262. The executive committee may enter into arrangements with
27persons purchasing cattle outside of this state for remitting
28the state assessment for direct use and any state assessment
29for clean water by such purchasers.
30 Sec. 18. Section 181.12, Code 2017, is amended to read as
31follows:
32181.12 Remission of state assessment assessments on
33application.
341. a. A person from whom a state assessment for direct
35use is collected may, by written application filed with the
-16-1executive committee within ninety days after its collection,
2have the amount remitted to the person by the executive
3committee.
4b. A person from whom a state assessment for clean water is
5collected may, by written application filed with the council
6as provided in paragraph “a”, have the amount remitted to the
7person by the division of soil conservation and water quality
8of the department of agriculture and land stewardship. Within
9sixty days after its collection, the council shall transmit any
10approved application to the division for a refund payment.
112. The information that the a state assessment described
12in subsection 1 is refundable and the address of the executive
13committee to which application for a refund may be made shall
14appear on the invoice of sale form supplied by the purchaser to
15the producer near the area on the form which shows the amount
16of the state assessment paid.
173. a. The executive committee shall furnish uniform
18application for refund forms and make the refund forms readily
19available to all producers.
20b. The form shall allow the applicant to elect whether the
21refund is for the state assessment for direct use or the state
22assessment for clean water or both. The council shall not
23approve an application unless the application indicates the
24election.A purchaser charged by this chapter with remitting
25the a state assessment shall make the forms readily available
26to all producers.
27 Sec. 19. Section 181.13, Code 2017, is amended to read as
28follows:
29181.13 Administration of moneys originating from state
30assessment assessments — appropriation.
311. a. All moneys, other than moneys from the state
32assessments assessment for clean water imposed under this
33chapter shall be paid to and collected by the executive
34committee and deposited with the treasurer of state in a
35separate cattle promotion fund which shall be created by the
-17-1treasurer of state. The department of administrative services
2shall transfer moneys from the fund to the executive committee
3for deposit into an account established by the executive
4committee in a qualified financial institution. The department
5shall transfer the moneys as provided in a resolution adopted
6by the executive committee. However, the department is only
7required to transfer moneys once during each day and only
8during hours when the offices of the state are open. From
9the moneys, other than moneys from the state assessment for
10clean water, collected, deposited, and transferred to the
11executive committee, in accordance with the provisions of this
12chapter, the executive committee shall first pay the costs
13of referendums held pursuant to this chapter, the costs of
14collection of such state assessments, and the expenses of its
15agents. At least ten percent of the remaining moneys shall
16be remitted to the association in proportions determined by
17the executive committee, for use in a manner not inconsistent
18with section 181.7. The remaining moneys, with approval of a
19majority of the executive committee, shall be expended as the
20executive committee finds necessary to carry out the provisions
21and purposes of this chapter. However, in no event shall the
22total expenses exceed the total amount transferred from the
23fund for use by the executive committee.
242. b. All moneys deposited in the cattle promotion fund and
25transferred to the executive committee pursuant to this section
26are appropriated and shall be used for the administration
27of this chapter and for the payment of claims based upon
28obligations incurred in the performance of activities and
29functions set forth in this chapter.
303. c. If the state assessment for direct use is suspended
31as provided in section 181.7A or a continuance special
32 referendum to continue the state assessment for clean water
33 fails to pass as provided in section 181.19A, moneys remaining
34in the cattle promotion fund and transferred to the executive
35committee shall continue to be transferred and expended in
-18-1accordance with the provisions of this chapter until exhausted.
22. a. All moneys collected from the state assessment for
3clean water imposed under this chapter shall be paid to and
4collected by the executive committee and may be deposited in a
5qualified financial institution until transferred to the clean
6water fund created in section 466B.51. If the state assessment
7for clean water is terminated as provided in section 181.19A,
8the remaining moneys collected from that state assessment shall
9be immediately transferred to the clean water fund.
10b. Except as otherwise expressly provided in this chapter,
11moneys collected from the state assessment for clean water
12shall not be used for any purpose other than to be transferred
13to the clean water fund created in section 466B.51.
14 Sec. 20. Section 181.19, Code 2017, is amended to read as
15follows:
16181.19 Initial and special referendums.
171. The secretary shall, upon the petition of five hundred
18producers, conduct an initial referendum to determine whether
19a state assessment for direct use is to be established. If
20established, the state assessment for direct use shall be
21 imposed, at a rate established by the executive committee
22not to exceed one dollar per head on all cattle sold for any
23purpose.
242. The secretary shall, upon the petition of five hundred
25producers, conduct a special referendum to do any of the
26following:
27a. Determine whether a state assessment for direct use
28 already imposed shall be increased to a rate, established by
29the executive committee, not to exceed one dollar per head on
30all cattle sold for any purpose.
31b. Determine whether a state assessment for direct use
32 suspended pursuant to section 181.7A is to be in addition to a
33federal assessment. The state assessment for direct use shall
34be imposed at a rate not to exceed one dollar per head on all
35cattle sold for whatever purpose.
-19- 13. a. Upon receipt of a petition that otherwise complies
2with the requirements of subsection 1, the secretary shall
3conduct a special referendum to establish a state assessment
4for clean water to be imposed in the same manner as a state
5assessment for direct use.
6b. The rate of the state assessment for clean water shall
7be established by the executive committee not to exceed the
8rate of the state assessment for direct use in effect on the
9date that the special referendum to impose a state assessment
10for clean water passes. However, if a federal assessment is
11imposed, the rate of the state assessment for clean water shall
12be established by the executive committee not to exceed the
13rate of the federal assessment. If a state assessment for
14direct use and a federal assessment are both being imposed,
15the rate of the state assessment for clean water shall be
16established by the executive committee not to exceed the rate
17of the state assessment for direct use plus the rate of the
18federal assessment.
194. Upon receipt of a petition that otherwise complies with
20the requirements of subsection 1, the secretary shall include
21as part of the initial referendum a separate special question
22whether to establish a state assessment for clean water as
23described in subsection 3, if the secretary determines the
24inclusion of the special question is cost-effective or the
25petition demands inclusion.
265. a. Upon receipt of a petition that otherwise complies
27with the requirements of subsection 2, the secretary shall
28conduct a special referendum to change the rate of the state
29assessment for clean water to be established by the executive
30committee not to exceed the rate of the state assessment
31for direct use and any federal assessment as described in
32subsection 2.
33b. Upon receipt of a petition that otherwise complies with
34the requirements of subsection 2, the secretary shall include
35as part of the special referendum conducted under subsection
-20-12 a separate special question whether to change the rate of
2the state assessment for clean water to be established by
3the executive committee not to exceed the rate of the state
4assessment for direct use and any federal assessment as
5described in subsection 2, if the secretary determines the
6inclusion of the special question is cost-effective or the
7petition demands inclusion.
86. a. If a an initial referendum or a special referendum
9described in this section passes, the secretary shall establish
10an effective date to commence the state assessment for direct
11use or the change in the rate of the state assessment for
12direct use. However, the state assessment or the change in the
13rate of the state assessment must be commenced within ninety
14days from the date that the secretary determines that the
15referendum has passed.
16b. If a state assessment for clean water is established
17or the rate of the state assessment for clean water changes
18under this section, the secretary shall establish an effective
19date to commence the state assessment or change the rate of the
20state assessment in the same manner as provided in paragraph
21“a”.
224. 7. a. If a special referendum to increase the rate of
23the state assessment for direct use does not pass, the result
24of the special referendum shall not affect the existence or
25length of the state assessment that is in effect on the date
26that the special referendum was conducted.
27b. If a special referendum, or a separate special question
28that is part of a special referendum conducted under this
29section, to change the rate of the state assessment for clean
30water does not pass, the result of the vote shall not affect
31the existence or period that the state assessment is in effect.
328. A state assessment for clean water is terminated on the
33date that the state assessment for direct use is terminated,
34unless a federal assessment is imposed.
35 Sec. 21. Section 181.19A, Code 2017, is amended to read as
-21-1follows:
2181.19A Continuance referendum Special referendums —
3continuance or termination.
41. The secretary shall, upon the receipt of a petition
5of producers, conduct a continuance special referendum to
6determine whether a state assessment for direct use established
7in section 181.19 should be renewed continued. The secretary
8must receive the petition not less than one hundred fifty and
9not more than two hundred forty days before the four-year
10anniversary of a state assessment’s the effective date of
11the state assessment for direct use. The petition must be
12signed within that period by a number of producers equal to
13or greater than two percent of the number of producers in
14this state reported in the most recent United States census
15of agriculture, requesting a special referendum to determine
16whether to continue the state assessment for direct use.
17The special referendum shall be conducted not earlier than
18thirty days before the four-year anniversary date of the state
19assessment for direct use.
202. a. The secretary shall, upon receipt of a petition
21of producers otherwise complying with the requirements of
22subsection 1, conduct a special referendum to determine whether
23the state assessment for clean water established in section
24181.19 should be continued. The special referendum shall be
25conducted in the same manner as a special referendum conducted
26under subsection 1.
27b. The secretary shall, upon receipt of a petition complying
28with the requirements of subsection 1, include as part of a
29special referendum provided in subsection 1 a separate special
30question whether a state assessment for clean water should be
31continued, if the secretary determines the inclusion of the
32separate special question is cost-effective or the petition
33demands inclusion.
342. 3. a. If the secretary determines that a continuance
35 special referendum has passed under subsection 1, the state
-22-1assessment for direct use shall continue in effect for four
2additional years from the anniversary of its effective date.
3b. If the secretary determines that a special referendum
4or special question to continue the state assessment for clean
5water has passed under subsection 2, the state assessment shall
6be in effect until the anniversary of the effective date of the
7state assessment for direct use described in paragraph “a”.
83. 4. a. If the secretary determines that the a special
9 referendum to continue the state assessment for direct use has
10not passed, the secretary and the executive committee shall
11terminate the state assessment in an orderly manner as soon as
12practicable after the determination.
13b. If the secretary determines that a special referendum to
14continue the state assessment for clean water has not passed,
15the secretary and the executive committee shall terminate the
16state assessment in the same manner as described in paragraph
17“a”.
18c. A state assessment for clean water is terminated on the
19date that the state assessment for direct use is terminated,
20unless a federal assessment is imposed.
215. a. Another If the secretary determines that a special
22referendum to continue the state assessment for direct use has
23not passed, another initial referendum conducted under section
24181.19 to determine whether to establish a state assessment
25for direct use shall not be held conducted for at least one
26hundred eighty days from the date that the state assessment is
27terminated.
28b. If the secretary determines that a special referendum to
29continue the state assessment for clean water has not passed,
30another special referendum to establish the state assessment or
31another initial or special referendum that includes a separate
32special question to establish the state assessment shall not be
33conducted for at least one hundred eighty days from the date
34that the state assessment was terminated.
354. 6. If no a valid petition for a continuance referendum
-23- 1provided in this section is not received by the secretary
2within the time period provided in this section, the state
3assessment for direct use or the state assessment for clean
4water shall continue in effect for four additional years from
5the anniversary of its the effective date of the initial
6referendum establishing the state assessment for direct use.
7DIVISION III
8IOWA SHEEP AND WOOL PROMOTION BOARD
9 Sec. 22. Section 182.1, subsection 1, Code 2017, is amended
10to read as follows:
111. “Assessment” means an excise tax on the sale of sheep
12or wool as provided in this chapter which may include an
13assessment for direct use and a state assessment for clean
14water.
15 Sec. 23. Section 182.1, Code 2017, is amended by adding the
16following new subsection:
17 NEW SUBSECTION. 6A. “Qualified financial institution” means
18a bank or credit union as defined in section 12C.1.
19 Sec. 24. Section 182.2, Code 2017, is amended to read as
20follows:
21182.2 Petition for initial referendum election.
22Upon receipt of a petition signed by at least fifty producers
23in each district requesting a an initial referendum by election
24 to determine whether to establish the board and to impose an
25assessment for direct use, the secretary shall call a the
26initial referendum to be conducted within sixty days following
27receipt of the petition.
28 Sec. 25. Section 182.3, Code 2017, is amended to read as
29follows:
30182.3 Notice of initial referendum.
31The secretary shall give notice of the initial referendum
32on the question of whether to establish an Iowa sheep and wool
33promotion board and to impose the an assessment for direct use
34 by publishing the notice for a period of not less than five
35days in at least one newspaper of general circulation in the
-24-1state. The notice shall state the voting places, period of
2time for voting, and other information deemed necessary by the
3secretary.
4A An initial referendum shall not be commenced until five
5days after the last date of publication.
6 Sec. 26. Section 182.4, Code 2017, is amended to read as
7follows:
8182.4 Establishment of sheep and wool promotion board —
9assessment assessments — termination.
101. Each producer who signs a statement certifying that
11the producer is a bona fide producer is entitled to one vote
12in an initial referendum conducted under this section. At
13the close of the initial referendum, the secretary shall
14count and tabulate the ballots cast. If a majority of voters
15favor establishing an Iowa sheep and wool promotion board and
16imposing establishing an assessment for direct use, an Iowa
17sheep and wool promotion the board and assessment shall be
18established. The assessment for direct use shall be imposed
19commencing not more than sixty days following the initial
20 referendum as determined by the Iowa sheep and wool promotion
21 board, and shall continue until the board and assessment for
22direct use are terminated by a special referendum as provided
23in conducted pursuant to subsection 2 4.
242. a. If the board is in existence, and upon receipt of
25a petition signed by at least twenty-five producers in each
26district requesting a special referendum to determine whether
27to establish a state assessment for clean water, the secretary
28shall call the special referendum to be conducted in the same
29manner as provided in subsection 1.
30b. If a board is not in existence, and upon receipt of a
31petition that complies with the requirements of paragraph “a”
32 the secretary shall include as part of the initial referendum
33a separate special question whether to establish a state
34assessment for clean water, if the secretary determines the
35inclusion of the special question is cost-effective or the
-25-1petition demands inclusion.
2c. If a majority of voters favor establishing the state
3assessment for clean water, the state assessment shall be
4imposed in the same manner and for the same period as the
5assessment for direct use described in subsection 1.
63. a. If a majority of the voters do not favor establishing
7an Iowa sheep and wool promotion a board and imposing the an
8 assessment for direct use, the board and an assessment shall
9not be established, and the assessment shall not be imposed
10and the board shall not be established until another initial
11 referendum is held conducted under this chapter and a majority
12of the voters favor establishing a board and imposing the an
13 assessment. If a an initial referendum fails, another initial
14 referendum shall not be held within conducted for at least
15 one hundred eighty days from the date of the last initial
16referendum.
17b. If a majority of the voters do not favor establishing
18a state assessment for clean water, the state assessment
19shall not be established until another special referendum, or
20another separate special question that is part of an initial
21referendum, is conducted under this chapter and a majority
22of the voters favor establishing the state assessment. If a
23special referendum or special question fails, another special
24referendum or initial referendum which includes a special
25question shall not be conducted within one hundred eighty days
26from the date that the last such special referendum or initial
27referendum was conducted.
282. 4. Upon receipt of a petition signed by at least
29twenty-five producers in each district requesting a special
30 referendum election to determine whether to terminate the
31establishment of the Iowa sheep and wool promotion board and
32to terminate the imposition of the and the assessment for
33direct use, the secretary shall call a special referendum to
34be conducted within sixty days following the receipt of the
35petition. The petitioners shall guarantee the payment of the
-26-1costs of a the special referendum held conducted under this
2subsection. If the majority of the voters of a voting at the
3special referendum do not favor termination, an additional
4special referendum may be held conducted when the secretary
5receives a petition signed by at least twenty-five producers in
6each district. However, the additional referendum shall not be
7held within conducted for at least one hundred eighty days from
8the date of the last such special referendum.
95. a. Upon receipt of a petition that otherwise complies
10with the requirements of subsection 4 requesting a special
11referendum election to determine whether to terminate the
12establishment of the state assessment for clean water, the
13secretary shall call a special referendum to be conducted in
14the same manner as provided in subsection 4.
15b. Upon receipt of a petition that otherwise complies
16with the requirements of subsection 4, the secretary shall
17include as part of the special referendum conducted under that
18subsection a separate special question whether to terminate the
19state assessment for clean water, if the secretary determines
20the inclusion of the special question is cost-effective or the
21petition demands inclusion.
22c. The petitioners shall guarantee the payment of the costs
23of the special referendum conducted under this subsection.
24d. If the majority of the voters of a special referendum
25conducted under this subsection do not favor termination,
26an additional special referendum may be conducted when
27the secretary receives a petition complying with the same
28requirements as described in this subsection. However, the
29additional special referendum shall not be conducted for at
30least one hundred eighty days from the date of the last such
31special referendum.
326. A state assessment for clean water is terminated on the
33date that the assessment for direct use is terminated. The
34secretary shall terminate the state assessment in an orderly
35manner as soon as practical.
-27-1 Sec. 27. Section 182.11, Code 2017, is amended to read as
2follows:
3182.11 Purposes of board.
41. The purposes of the board shall be to:
51. a. Enter into contracts or agreements with or make
6grants to recognized and qualified agencies, individuals,
7or organizations for the development and carrying out of
8research and education programs directed toward better and more
9efficient production, marketing, and utilization of sheep and
10wool and their products.
112. b. Provide methods and means, including, but not limited
12to, public relations and other promotion techniques for the
13maintenance of present markets.
143. c. Assist in development of new or larger markets, both
15domestic and foreign, for sheep and wool and their products.
162. The board shall cooperate with the division of soil
17conservation and water quality of the department of agriculture
18and land stewardship in doing all of the following:
19a. Transferring moneys collected from the state assessment
20for clean water to the clean water fund created in section
21466B.51.
22b. Being reimbursed for reasonable expenses incurred in
23conducting an initial or special referendum to establish,
24continue, or terminate a state assessment for clean water.
25 Sec. 28. Section 182.13, Code 2017, is amended to read as
26follows:
27182.13 Compensation — meetings.
28Members of the board may receive payment for their actual
29expenses and travel in performing official board functions.
30Payment shall be made from amounts collected from the
31assessment for direct use. No A member of the board shall not
32 be a salaried employee of the board or any organization or
33agency receiving funds moneys collected from the board. The
34board shall meet at least once every three months, and at other
35times it deems necessary.
-28-1 Sec. 29. Section 182.13B, Code 2017, is amended to read as
2follows:
3182.13B Assessment rate rates.
41. a. If a majority of voters voting at a an initial
5 referendum conducted pursuant to section 182.4 approve the
6establishment of an Iowa sheep and wool promotion theboard and
7the imposition of an assessment for direct use, the assessment
8shall be imposed on wool and sheep at the following rates:
9a. (1) For wool, two cents imposed on each pound of wool
10sold by a producer.
11b. (2) For sheep, ten cents imposed on each head of sheep
12sold by a producer.
13b. If a majority of voters voting at a special referendum
14conducted pursuant to section 182.4 approve the establishment
15of a state assessment for clean water, the state assessment
16shall be imposed on wool and sheep at the rates established by
17board resolution not to exceed the rates described in paragraph
18“a”.
192. a. Notwithstanding subsection 1, upon a resolution
20adopted by the board, the secretary shall call a special
21referendum for voters to authorize increasing the assessment
22 rate of the assessment for direct use imposed on sheep as
23provided in this section or increasing the assessment for
24direct use imposed on sheep as provided in this section.
25b. Notwithstanding subsection 1, upon a resolution adopted
26by the board, the secretary shall call a special referendum for
27voters to authorize increasing the rate of the state assessment
28for clean water imposed on sheep as provided in this section.
29The secretary shall include as part of the special referendum
30to increase the rate of the assessment for direct use a
31separate special question whether to increase the rate of the
32state assessment for clean water, if the secretary determines
33the inclusion of the special question is cost-effective or the
34resolution demands inclusion.
35b. c. The special referendum to increase the rate of the
-29-1assessment for direct use or to increase the rate of the state
2assessment for clean water shall be conducted in the same
3manner as a an initial referendum conducted upon receipt of
4a petition as provided in this chapter section 182.4, unless
5otherwise provided in the board’s resolution. Only producers
6are eligible to vote in an election the special referendum and
7each producer is entitled to one vote.
83. a. The special referendum to increase the rate of the
9assessment for direct use conducted pursuant to subsection 2
10shall allow a voter to cast a ballot for the following two
11questions:
12a. (1) For the first question, whether to authorize an
13increase in the rate of assessment rate for direct use to
14twenty-five cents imposed on each head of sheep.
15b. (2) For the second question, if the first question is
16approved by a majority of voters, whether to also authorize the
17board to increase that assessment the rate of the assessment
18for direct use by future resolution as provided in this
19section.
20b. The special referendum to increase the rate of the state
21assessment for clean water shall be conducted in the same
22manner as described in subsection 3 and shall allow a voter to
23cast a ballot for the following two questions:
24(1) For the first question, whether to authorize an increase
25in the rate of state assessment for clean water to a rate
26established by board resolution not to exceed the increased
27rate of assessment for direct use described in subsection 3,
28paragraph “a”, subparagraph (1).
29(2) For the second question, if the first question is
30approved by a majority of voters, whether to also authorize the
31board to increase that rate of state assessment for clean water
32by future resolution as provided in subsection 3, paragraph “a”,
33subparagraph (2).
34c. A state assessment for clean water shall not be effective
35if the state assessment exceeds the assessment for direct use.
-30- 14. a. If a majority of voters approve the first question to
2increase the rate of the assessment for direct use as described
3in subsection 3, paragraph “a”, subparagraph (1), twenty-five
4cents shall be imposed on each head of sheep sold by a producer
5as effectuated by the board pursuant to section 182.12.
6b. If a majority of voters also approve increasing the
7rate of the state assessment for clean water as described in
8subsection 3, paragraph “b”, subparagraph (1), the increased
9rate shall be imposed on each head of sheep sold by a producer
10as effectuated by the board pursuant to section 182.12.
115. a. If a majority of voters approve both the first and
12second questions to increase the rate of the assessment for
13direct use under subsection 3, paragraph “a”, subparagraphs (1)
14and (2), all of the following apply:
15a. (1) Twenty-five The rate of the assessment for direct use
16shall equal twenty-five cents shall be imposed on each head of
17sheep sold by a producer as effectuated by the board pursuant
18to section 182.12.
19b. (2) The board may adopt one or more resolutions to
20further impose an increased rate of assessment rate for direct
21use.
22b. If a majority of voters also approve increasing the
23rate of state assessment for clean water as described in
24subsection 3, paragraph “b”, subparagraphs (1) and (2), all of
25the following shall apply:
26(1) The rate of the state assessment for clean water shall
27equal the increase described in subsection 3, paragraph “b”,
28subparagraph (1), imposed on each head of sheep sold by a
29producer.
30(2) The board may adopt one or more resolutions to further
31impose an increased rate of state assessment for clean water
32so long as the rate does not exceed the rate of the assessment
33for direct use.
34c. The increased assessment rate of the assessment for
35direct use or the increased rate of the state assessment for
-31-1clean water shall be imposed on each head of sheep sold by
2a producer as effectuated by the board pursuant to section
3182.12. The board shall comply with all of the following:
4(1) The board must wait three or more years from the
5effective date of the previous action imposing an increase in
6the rate of the assessment for direct use in order to adopt
7a resolution. For the first increase, the effective date is
8the date of the special referendum to increase the rate of
9the assessment. For any subsequent increase in the rate of
10assessment, the effective date is the date that the board last
11adopted a resolution imposing an increased rate as provided in
12this paragraph “b” subsection.
13(2) The board must wait three or more years from the
14effective date of the previous action imposing an increase in
15the rate of the state assessment for clean water in order to
16adopt a resolution. For the first increase, the effective date
17is the date of the special referendum to increase the rate
18of the state assessment for clean water. For any subsequent
19increase, the effective date is the date that the board last
20adopted a resolution imposing an increased rate as provided in
21this subsection.
22(2) (3) The board shall not adopt a resolution until it
23provides notice to producers of the proposed increase in the
24assessment for direct use or the state assessment for clean
25water and an opportunity for producers to submit written or
26oral comments to the board regarding the proposed increase.
27The board may provide notice by publication in the same manner
28as provided in section 182.3, publication on its internet
29site, mail bearing a United States postal service postmark,
30electronic transmission, or hand-delivery.
31(3) (4) (a) The An increase in the assessment rate of the
32assessment for direct use imposed by a resolution adopted by
33the board must shall equal five cents. However, the assessment
34 rate of the assessment for direct use imposed by a resolution
35of the board shall not equal more than fifty cents.
-32- 1(b) An increase in the rate of the state assessment for
2clean water imposed by resolution adopted by the board shall
3equal five cents. However, the rate of the state assessment
4for clean water imposed by resolution of the board shall not
5equal more than fifty cents.
66. a. If a majority of voters do not authorize increasing
7the rate of the assessment rate for direct use pursuant to a
8special referendum conducted pursuant to under this section,
9the assessment rate for the assessment for direct use shall be
10the same as provided in subsection 1, paragraph “a”.
11b. If a majority of voters do not authorize increasing the
12rate of the assessment for direct use pursuant to a special
13referendum conducted under this section, the rate for the state
14assessment for clean water shall be the same as provided in
15subsection 1, paragraph “b”.
16b. 7. Not more than one special referendum to establish an
17assessment for direct use or to establish a state assessment
18for clean water shall be conducted pursuant to this section.
19 Sec. 30. Section 182.14, Code 2017, is amended to read as
20follows:
21182.14 Assessment Assessments.
221. An assessment for direct use or a state assessment for
23clean water provided in this chapter shall be imposed on the
24producer as follows:
25a. If the producer sells wool or sheep to the first
26purchaser within this state, the following shall apply:
27(1) If the sale occurs at a concentration point, the
28assessment shall be imposed at the time of delivery. The first
29purchaser shall deduct the assessment or state assessment from
30the price paid to the producer at the time of sale.
31(2) If the sale does not occur at a concentration point,
32the producer shall deduct the assessment or state assessment
33 from the amount received from the sale and shall forward the
34amount deducted to the board within thirty days following each
35calendar quarter.
-33- 1b. If the producer sells, ships, or otherwise disposes of
2wool or sheep to any person outside this state, the producer
3shall deduct the assessment or state assessment from the amount
4received from the sale and shall forward the amount deducted
5to the board.
62. The assessment for direct use or the state assessment
7for clean water imposed by this section shall be remitted to
8the board not later than thirty days following each calendar
9quarter during which the assessment amount or state assessment
10amount was deducted.
11 Sec. 31. Section 182.15, subsection 1, paragraph e, Code
122017, is amended to read as follows:
13e. The rate of withholding and the total amount of the
14assessment for direct use and the state assessment for
15clean water withheld. The board may require the invoice to
16separately indicate the amount withheld for the assessment for
17direct use and the state assessment for clean water.
18 Sec. 32. Section 182.16, Code 2017, is amended to read as
19follows:
20182.16 Deposit and disbursement Administration of funds
21 moneys.
221. The board shall deposit amounts moneys collected from the
23assessment for direct use imposed pursuant to section 182.14 in
24an account established pursuant to section 182.12. Expenses
25and disbursements incurred and made pursuant to this chapter
26shall be made by voucher, draft, or check bearing the signature
27of a person designated by majority vote of the board.
282. a. The board may deposit moneys collected from the state
29assessment for clean water in a qualified financial institution
30until transferred to the clean water fund created in section
31466B.51.
32b. If the state assessment for clean water is terminated as
33provided in section 182.4, the remaining moneys collected from
34that state assessment shall be immediately transferred to the
35clean water fund.
-34-1 Sec. 33. Section 182.17, Code 2017, is amended to read as
2follows:
3182.17 Refunds.
41. a. A producer who has paid the assessment for direct use
5 may, by application in writing to the board, secure a refund of
6all or part of the amount paid to the board.
7b. A producer who has paid the state assessment for clean
8water to the board may, by application in writing to the board,
9secure a refund of all or part of the amount paid to the board.
10The board shall transmit any approved application for a refund
11to the division of soil conservation and water quality of the
12department of agriculture and land stewardship for payment.
132. The refund shall be payable only when the application has
14been made to the board within sixty days after the deduction
15has been made by the producer or within sixty days after the
16remittance has been made by the first purchaser.
173. Each application for refund by a producer shall have
18an attached proof indicating that the assessment for direct
19use was paid. If a state assessment for clean water is
20imposed, the attached proof shall also indicate that the state
21assessment has also been paid. The attached proof of the
22assessment paid may be in the form of a duplicate or certified
23copy of the purchase invoice by the purchaser.
244. The application shall allow the applicant to elect
25whether the refund is for the assessment for direct use or the
26state assessment for clean water or both. The board shall not
27approve an application unless the application indicates the
28election.
29 Sec. 34. Section 182.18, Code 2017, is amended to read as
30follows:
31182.18 Use of moneys.
321. Moneys from the assessment for direct use collected
33under this chapter are subject to audit by the auditor of state
34and shall be used by the Iowa sheep and wool promotion board
35first for the payment of collection and refund expenses, second
-35-1for payment of the costs and expenses arising in connection
2with conducting referendums, third for the purposes identified
3in section 182.11, and fourth for the cost of audits for
4the auditor of state. Moneys of the board remaining after
5a special referendum is held at which a majority of the
6voters favor termination of the board and the assessment for
7direct use shall continue to be expended in accordance with
8this chapter until exhausted. The auditor of state may seek
9reimbursement for the cost of the audit.
102. Except as expressly provided in this chapter, moneys
11collected by the board from the state assessment for clean
12water shall not be used for any purpose other than to be
13transferred to the clean water fund created in section 466B.51.
142. 3. The board shall not engage in any political activity,
15and it shall be a condition of any allocation of funds that
16any organization receiving funds shall not expend the funds on
17political activity or on any attempt to influence legislation.
18 Sec. 35. Section 182.22, Code 2017, is amended to read as
19follows:
20182.22 Purchasers outside Iowa.
21The secretary may enter into arrangements with first
22purchasers from outside Iowa for payment of the assessment for
23direct use and the state assessment for clean water.
24DIVISION IV
25IOWA PORK PRODUCERS COUNCIL
26IOWA PORK PRODUCERS ASSOCIATION
27 Sec. 36. Section 183A.1, subsection 1, Code 2017, is amended
28to read as follows:
291. “Assessment” means an excise tax on the sale of porcine
30animals as provided in this chapter which may include an
31assessment for direct use and a state assessment for clean
32water.
33 Sec. 37. Section 183A.1, Code 2017, is amended by adding the
34following new subsection:
35 NEW SUBSECTION. 4A. “National assessment” means an excise
-36-1tax on the sale of porcine animals imposed pursuant to the Pork
2Promotion Act.
3 Sec. 38. Section 183A.1, subsection 7, Code 2017, is amended
4to read as follows:
57. “Pork Promotion Act” means the federal Pork Promotion,
6Research, and Consumer Information Act of 1985, 7 U.S.C. §4801
7et seq.
8 Sec. 39. Section 183A.5, subsection 1, paragraph i, Code
92017, is amended to read as follows:
10i. Receive, administer, disburse and account for, in
11addition to the funds moneys received from the assessment for
12direct use and the state assessment for clean water provided in
13this chapter, other funds moneys voluntarily contributed to the
14council for the purpose of promoting the pork industry.
15 Sec. 40. Section 183A.5, Code 2017, is amended by adding the
16following new subsection:
17 NEW SUBSECTION. 4. The council shall cooperate with
18the division of soil conservation and water quality of the
19department of agriculture and land stewardship in doing all of
20the following:
21a. Transferring moneys collected from the state assessment
22imposed as a result of a special referendum conducted pursuant
23to section 183A.9 to the clean water fund created in section
24466B.51.
25b. Being reimbursed for reasonable expenses incurred in
26conducting an initial or special referendum to establish,
27continue, or terminate a state assessment for clean water.
28 Sec. 41. Section 183A.6, Code 2017, is amended to read as
29follows:
30183A.6 Assessment Assessments.
311. The council shall make impose an assessment for direct
32use of not less than point zero zero two nor more than point
33zero zero three of the gross sale price of all porcine animals.
34The assessment for direct use shall be point zero zero two five
35of the gross sale price of porcine animals until consent to
-37-1an assessment has been given through the initial referendum
2referred to in this chapter. After approval of the initial
3referendum, the rate of assessment for direct use shall be
4determined established by the council.
52. a. If an assessment for direct use is imposed under
6subsection 1, the council shall impose a state assessment for
7clean water if approved at a special referendum conducted
8pursuant to section 183A.9.
9b. If a national assessment is imposed under section
10183A.9A, the Iowa pork producers association shall impose a
11state assessment for clean water if approved at a special
12referendum conducted pursuant to section 183A.9.
133. a. The assessment for direct use and the state
14assessment for clean water shall be made at the time of
15delivery of the porcine animals for sale, and shall be deducted
16by the first purchaser from the price paid to the seller. The
17first purchaser, at the time of sale, shall make and deliver
18to the seller an invoice for each purchase showing the names
19and addresses of the seller and the first purchaser, the number
20and kind of porcine animals sold, the date of sale, and the
21assessment for direct use, and any state assessment for clean
22water, made on the sale. The council may require the invoice
23to separately indicate the amount withheld for the assessment
24for direct use and the state assessment for clean water.
25b. Assessments An assessment for direct use and the state
26assessment for clean water shall be paid to the Iowa pork
27producers council or its designated agent by first purchasers
28at a time prescribed by the council, but not later than the
29last day of the month following the month in which the animals
30were purchased.
314. If a national assessment is imposed pursuant to section
32183A.9A, and a state assessment for clean water is imposed
33under section 183A.9, the Iowa pork producers association shall
34impose and collect the state assessment for clean water in
35the same manner as the assessment for direct use set forth in
-38-1subsection 3. However, the Iowa pork producers association may
2impose and collect the state assessment based on procedures for
3the national assessment as set forth in the pork promotion Act.
4The invoice may correspond to any invoice required by the pork
5promotion Act.
6 Sec. 42. Section 183A.7, Code 2017, is amended to read as
7follows:
8183A.7 Administration of moneys — appropriation.
91. a. Assessments An assessment for direct use imposed
10under this chapter pursuant to section 183A.6 and paid to and
11collected by the Iowa pork producers council shall be deposited
12in the pork promotion fund which is established in the office
13of the treasurer of state. The department of administrative
14services shall transfer moneys from the pork promotion fund
15to the council for deposit into an account established by the
16council in a qualified financial institution. The department
17shall transfer the moneys as provided in a resolution adopted
18by the council. However, the department is only required to
19transfer moneys once during each day and only during hours when
20the offices of the state are open.
212. b. All moneys deposited in the pork promotion fund and
22transferred to the council as provided in this section are
23appropriated and shall be used for the administration of this
24chapter and for the payment of claims based upon obligations
25incurred in the performance of activities and functions set
26forth in this chapter.
273. c. From the moneys collected, deposited, and transferred
28to the council as provided in this chapter, the council shall
29first pay the costs of referendums held pursuant to this
30chapter. Of the moneys remaining, at least twenty-five percent
31shall be remitted to the national pork producers council and
32at least fifteen percent shall be remitted to the Iowa pork
33producers association, in the proportion the committee council
34 determines, for use by recipients in a manner not inconsistent
35with market development as defined in section 183A.1. Moneys
-39-1remaining shall be spent as found necessary by the council to
2further carry out the provisions and purposes of this chapter.
34. d. However, in In no event shall the total expenses
4exceed the total amount of moneys transferred from the pork
5promotion fund for use by the council.
62. a. Moneys collected from a state assessment for clean
7water by the council may be deposited in a qualified financial
8institution and shall be transferred to the clean water fund
9created in section 466B.51.
10b. If a national assessment is imposed pursuant to section
11183A.9A, moneys from the state assessment for clean water
12collected by the Iowa pork producers association shall be
13transferred to the clean water fund created in section 466B.51.
14c. The Iowa pork producers association shall maintain
15separate accounts for moneys collected from the national
16assessment and the state assessment for clean water.
17d. The Iowa pork producers association shall adopt rules
18as necessary to administer this subsection and other sections
19in this chapter which directly or indirectly relate to this
20subsection.
21 Sec. 43. Section 183A.8, Code 2017, is amended to read as
22follows:
23183A.8 Refund of assessment assessments.
241. A producer from whom the an assessment for direct use or
25a state assessment for clean water has been deducted, upon is
26entitled to receive a refund upon filing a written application
27filed with the council within thirty days after its collection,
28shall have that amount refunded by the council.
292. a. Application If an assessment for direct use or
30an assessment for direct use and any state assessment for
31clean water are imposed, application forms shall be given by
32the council to each first purchaser when requested and the
33first purchaser shall make the applications available to any
34producer.
35b. Each application for a refund by a producer shall have
-40-1attached a proof of assessment for direct use deducted. If
2the assessment for direct use and state assessment for clean
3water are imposed, the attached proof shall indicate the amount
4of the assessment and the amount of the state assessment
5deducted. The proof of the assessment for direct use and any
6state assessment for clean water deducted shall be in the form
7of the original or a copy of the purchase invoice by the first
8purchaser. The application shall allow the applicant to elect
9whether the refund is for the assessment for direct use or the
10state assessment for clean water or both. The council shall
11not approve an application unless the application indicates the
12election.
133. The council shall have no not more than thirty days from
14the date the application for a refund is received to remit do
15all of the following:
16a. Remitthe amount of the refund of an assessment for
17direct use to the producer.
18b. Submit an approved application for the refund of a state
19assessment for clean water to the division of soil conservation
20and water quality of the department of agriculture and land
21stewardship which shall remit the amount of the refund to the
22producer.
234. If a national assessment is established pursuant to
24section 183A.9A and a state assessment for clean water is
25established pursuant to section 183A.9, the producer shall file
26a written application with the Iowa pork producers association
27in lieu of the council in the same manner as provided in
28subsection 1 and the Iowa pork producers association shall
29make applications available to first purchasers as provided in
30subsection 2. However, the Iowa pork producers association
31may provide for filing applications for a refund based on any
32applicable procedures set forth in the Pork Promotion Act. In
33any case, the Iowa pork producers association must transfer
34approved applications for refunds to the division of soil
35conservation and water quality of the department of agriculture
-41-1and land stewardship for payment to producers in the same
2manner as described in subsection 3.
3 Sec. 44. Section 183A.9, Code 2017, is amended to read as
4follows:
5183A.9 Referendum Initial and special referendums —
6assessments.
71. At a time designated by the council within eighteen
8months after the termination of the collection of assessments
9 the national assessment imposed under the Pork Promotion Act,
10the secretary shall conduct an initial referendum under to
11establish an Iowa pork producers council and an assessment for
12direct use. The referendum shall be conducted according to
13 administrative procedures prescribed adopted by the department
14of agriculture and land stewardship.
152. If an assessment for direct use is established and upon
16receipt of a request of ten percent or more of the number
17of producers eligible to vote, the secretary shall conduct a
18special referendum to determine whether producers favor the
19establishment of a state assessment for clean water. The
20special referendum shall be conducted in the same manner as
21an initial referendum conducted pursuant to subsection 1.
22The rate of the state assessment for clean water shall be
23established by the Iowa pork producers council not to exceed
24the rate of the assessment for direct use established pursuant
25to an initial referendum described in section 183A.6.
263. Upon receipt of a petition that otherwise complies with
27the requirements of subsection 2, the secretary may in lieu of
28conducting a special referendum include as part of the initial
29referendum a separate special question whether to establish a
30state assessment for clean water, if the secretary determines
31it to be cost-effective or the petition demands it.
322. 4. Upon signing a statement certifying to the secretary
33that the person is a bona fide producer as defined in this
34chapter, each producer is entitled to one vote in each initial
35or special referendum. The secretary shall determine the
-42-1qualification of producers under this section.
23. 5. The secretary shall count and tabulate the ballots
3filed during the initial or special referendum within thirty
4days of the close of the referendum. If from the tabulation
5the secretary determines that a majority of the total number
6of producers voting in the initial referendum favors the
7establishment of the assessment for direct use, the assessment
8provided for in the referendum shall be levied imposed. If
9from the tabulation the secretary determines that a majority of
10the total number of producers voting in the initial or special
11referendum favors the establishment of the state assessment
12for clean water, the state assessment shall be imposed. The
13ballots cast pursuant to this section constitute complete and
14conclusive evidence for use in determinations made by the
15secretary under this chapter.
164. 6. a. The secretary shall hold subsequent referendums
17 conduct a special referendum on request of receipt of a
18petition signed by ten percent or more of the number of
19producers eligible to vote, to determine whether the producers
20favor the termination or any of the following:
21(1) Thesuspension of the assessment for direct use.
22(2) The termination of the assessment for direct use and the
23state assessment for clean water, if established.
24b. The secretary shall suspend or terminate collection
25of the assessment for direct use within six months after the
26secretary determines that suspension or termination of the
27assessment for direct use is favored by a majority of the
28producers voting in the special referendum, and. The secretary
29 shall terminate the assessment for direct use in an orderly
30manner as soon as practicable after the determination.
317. a. The secretary shall conduct a special referendum on
32receipt of a petition of producers otherwise complying with the
33requirements in subsection 6 to conduct a special referendum to
34terminate the state assessment for clean water.
35b. Upon receipt of a petition that otherwise complies
-43-1with the requirements of subsection 6, the secretary shall
2include as part of the special referendum conducted under that
3subsection a separate special question whether to terminate
4the state assessment for clean water, if the secretary
5determines the inclusion of the separate special question is
6cost-effective or the petition demands inclusion.
78. The secretary shall terminate the state assessment for
8clean water in the same manner as provided in subsection 6,
9upon determining that the council is abolished, the assessment
10for direct use is not being collected, and the national
11assessment is not being collected.
12 Sec. 45. Section 183A.9A, Code 2017, is amended to read as
13follows:
14183A.9A Suspension during national order.
151. The terms of all voting members serving on the council on
16January 31, 1986, terminate at the time provided in subsection
172.
182. a. On the date of the commencement of the collection
19of assessments a national assessment under the Pork Promotion
20Act, the collection of the assessments assessment for direct
21use under section 183A.6 shall be suspended. The council shall
22continue to operate after suspension until all refunds are paid
23and all funds moneys remaining in the pork promotion fund, less
24a reserve for future refunds, are disbursed for the purposes
25enumerated in this chapter. Notwithstanding section 183A.7,
26the council need not retain a reserve for future referendums.
27Upon completion of these acts, the existence of the Iowa pork
28producers council is suspended. The secretary of agriculture
29 shall certify the suspension of the council as of a date
30certain to the Iowa pork producers council and the Iowa pork
31producers association. When the existence of the council is
32suspended, the terms of office of council members terminate.
33b. On the date of the commencement of the collection of
34the national assessment under the Pork Promotion Act, the Iowa
35pork producers association shall assume collection of the state
-44-1assessment for clean water under section 183A.9.
23. a. If the rate of the national assessment has changed,
3and upon receipt of a petition that otherwise complies
4with requirements for submitting a petition to suspend or
5terminate an assessment for direct use under section 183A.9,
6the secretary shall conduct a special referendum to determine
7whether to change the rate of the state assessment for
8clean water to a rate established by the Iowa pork producers
9association not to exceed the rate of the national assessment.
10b. Upon receipt of a petition that otherwise complies with
11requirements for submitting a petition to suspend or terminate
12an assessment for direct use under section 183A.9, the
13secretary shall include as part of a referendum to change the
14rate of the national assessment, a separate special question
15whether to change the rate of the state assessment for clean
16water not to exceed the change in the national assessment, if
17the secretary determines the inclusion of the special question
18complies with federal law and either it is cost-effective or
19the petition demands inclusion.
20c. If the national assessment is changed, and the secretary
21determines that a change in the state assessment for clean
22water is favored by a majority of the producers voting in a
23special referendum or separate special question as part of
24a referendum to change the rate of the national assessment,
25the rate of the state assessment shall be changed on a date
26determined by the secretary after consultation with the Iowa
27pork producers association but not later than six months
28after the date that the special referendum or referendum was
29conducted.
303. 4. On the date of the termination of the collection of
31assessments the national assessment under the Pork Promotion
32Act, the period of suspension of the assessments assessment
33for direct use under subsection 2 terminates. The secretary
34shall collect moneys from the assessments assessment for direct
35use under section 183A.6 and the state assessment for clean
-45-1water under section 183A.9 until this duty can be resumed by
2the reactivated council. The secretary shall deposit moneys
3collected from the assessment for direct use in the pork
4promotion fund. The secretary shall transfer moneys collected
5from the state assessment for clean water to the clean water
6fund created in section 466B.51.
74. 5. On the date of the termination of the collection of
8assessments the national assessment under the Pork Promotion
9Act, the period of suspension of the council under subsection 2
10terminates. Within sixty days from this date, the secretary
11shall appoint voting members to the council. For purposes of
12section 183A.3, a voting member so appointed is deemed not to
13have served a previous consecutive term. The terms of office
14of voting members of the initial reactivated council shall be
15determined by lot, but members from the same district shall
16not serve the same terms. As nearly as possible one-third of
17the voting members shall serve for one year, one-third of the
18voting members shall serve for two years, and one-third of the
19voting members shall serve for three years. Subsequent voting
20members shall be appointed pursuant to section 183A.2.
215. 6. The secretary shall call the first meeting of the
22reactivated council. Upon reactivation, the council shall
23reimburse the secretary for expenses incurred in carrying out
24the duties provided in this section.
257. The state recognizes the Iowa pork producers association
26as a state association under the Pork Promotion Act. For
27purposes of this chapter, “association” shall include a
28successor state association or other state association that
29administers the national assessment in Iowa.
308. If a state assessment for clean water is established
31or continued pursuant to sections 183A.9 and 183A.9A, the
32Iowa pork producers association shall administer the state
33assessment for the period that the Pork Promotion Act is in
34effect, unless the state assessment is terminated under section
35183A.9.
-46- 19. The Iowa pork producers association shall cooperate with
2the division of soil conservation and water quality of the
3department of agriculture and land stewardship in doing all of
4the following:
5a. Transferring moneys from the state assessment for clean
6water to the clean water fund created in section 466B.51.
7b. Being reimbursed for reasonable expenses incurred in
8conducting an initial or special referendum to establish,
9continue, or terminate a state assessment for clean water.
10DIVISION V
11IOWA EGG COUNCIL
12 Sec. 46. Section 184.1, subsection 1, Code 2017, is amended
13to read as follows:
141. “Assessment” means an excise tax on the sale of eggs as
15provided in this chapter which may include an assessment for
16direct use and a state assessment for clean water.
17 Sec. 47. Section 184.2, Code 2017, is amended to read as
18follows:
19184.2 Establishment of Iowa egg council and assessment
20 assessments.
211. The secretary shall call and the department shall
22conduct a an initial referendum upon the department’s receipt
23of a petition for direct use which is signed by at least
24twenty producers requesting a an initial referendum to
25determine whether to establish an Iowa egg council and to
26impose establish an assessment for direct use to be imposed as
27provided in section 184.3.
282. a. If the council has been established, the secretary
29shall call and the department shall conduct a special
30referendum upon the department’s receipt of a petition that
31otherwise complies with subsection 1 calling for a state
32assessment for clean water to be imposed as provided in section
33184.3.
34b. Upon receipt of a petition that otherwise complies with
35subsection 1, the secretary may in lieu of conducting a special
-47-1referendum include as part of the initial referendum a separate
2special question whether to establish a state assessment for
3clean water to be imposed as provided in section 184.3, if the
4secretary determines the inclusion of the special question is
5cost-effective or the petition demands inclusion.
63. The initial referendum or a special referendum described
7in this section shall be conducted within sixty days following
8receipt of the petition. The petitioners shall guarantee
9payment of the cost of the initial referendum or special
10referendum by providing evidence of financial security as
11required by the department.
122. 4. The department shall give notice of the initial
13 referendum on the question whether to establish a council and
14to impose an assessment or special referendum described in this
15section by publishing the notice for a period of not less than
16five days in at least one newspaper of general circulation in
17the state. The notice shall state the voting places, period
18of time for voting, and other information deemed necessary by
19the department. A An initial referendum or special referendum
20 shall not be commenced until five days after the last date of
21publication.
223. a. 5. Each producer who signs a statement certifying
23that the producer is a bona fide producer shall be an eligible
24voter under this section. An eligible voter is entitled to
25cast one vote in each initial referendum or special referendum
26 conducted under this section.
27b. 6. At the close of the initial referendum or special
28referendum, the secretary shall count and tabulate the ballots
29cast.
30(1) 7. a. If a majority of eligible voters approve
31establishing an Iowa egg a council and imposing an assessment
32for direct use, a the council and the assessment shall be
33established, and an the assessment shall be imposed, commencing
34not more than sixty days following the initial referendum as
35determined by the council and shall continue until eligible
-48-1voters voting in a special referendum held conducted pursuant
2to section 184.5 vote to abolish the council and terminate the
3imposition of the assessment for direct use.
4b. If a majority of eligible voters approve establishing
5a state assessment for clean water, pursuant to a special
6referendum, the state assessment shall be imposed commencing
7not more than sixty days following the special referendum as
8determined by the council. If a majority of eligible voters
9approve establishing a state assessment for clean water, as
10part of an initial referendum the state assessment shall be
11imposed in the same manner described in paragraph “a”. The
12state assessment for clean water shall continue until eligible
13voters voting in a special referendum conducted pursuant to
14section 184.5 vote to do any of the following:
15(1) Abolish the council and terminate the assessment for
16direct use.
17(2) Terminate the state assessment for clean water.
18(2) 8. a. If a majority of the voters do not approve
19establishing the council and imposing the assessment for direct
20use, the council and the assessment shall not be established,
21 and an the assessment shall not be imposed, until another
22initial referendum is held conducted under this chapter and a
23majority of the eligible voters approve establishing a council
24and imposing the an assessment for direct use. If a an initial
25 referendum should fail, another initial referendum to decide
26whether to establish a council and an assessment shall not be
27held conducted within at least one hundred eighty days from the
28date that the last initial referendum was conducted.
29b. If a majority of the voters do not approve establishing
30a state assessment for clean water, the state assessment
31shall not be established until the question is approved at
32a special referendum or as part of an initial referendum
33conducted pursuant to this section. If a special referendum,
34or an initial referendum which includes the question whether
35to establish a state assessment for clean water, should fail,
-49-1the special referendum or an initial referendum which includes
2the special question shall not be conducted for at least one
3hundred eighty days from the date that the last such special
4referendum or initial referendum was conducted.
54. 9. Immediately after passage of the question to
6establish a council and assessment for direct use at the an
7initial referendum, the secretary shall appoint seven members
8to the council in accordance with section 184.6 based on
9nominations made by the Iowa poultry association. The Iowa
10poultry association shall nominate and the secretary shall
11appoint two members representing large producers, two members
12representing medium producers, and three members representing
13small producers. The department, in consultation with the Iowa
14poultry association, shall determine initial classifications
15for small, medium, and large producers. The secretary shall
16complete the appointments within thirty days following passage
17of the question at the initial referendum.
18 Sec. 48. Section 184.3, Code 2017, is amended to read as
19follows:
20184.3 Assessment Assessments and state assessments.
211. a. Except as provided in paragraph “b” subsection 4,
22an assessment for direct use of two and one-half cents is
23imposed on each thirty dozen eggs produced in this state. The
24assessment for direct use shall be imposed on a producer at the
25time of delivery to a purchaser who shall deduct the assessment
26for direct use from the price paid to a producer at the time of
27sale.
282. A state assessment for clean water is imposed and
29deducted in the same manner as the assessment for direct use
30provided in subsection 1. The rate of the state assessment for
31clean water shall be established by the council at a rate not
32to exceed the rate of assessment for direct use as provided in
33subsection 1.
343. The assessment for direct use and the state assessment
35for clean water shall not be refundable. The assessment is for
-50-1direct use and state assessment for clean water are due to be
2paid to the council within thirty days following each calendar
3quarter, as provided by the council.
4b. 4. a. Upon request of the council, the secretary shall
5call a special referendum for producers to vote on whether to
6authorize an increase in the rate of assessment for direct use
7 to an amount that is more than two and one-half cents imposed
8on each thirty dozen eggs produced in this state.
9b. Upon request of the council, the secretary shall call
10a special referendum for producers to vote on whether to
11authorize an increase in the state assessment for clean water
12as established by the council not to exceed the rate of the
13assessment for direct use described in paragraph “a”. The
14secretary shall include as part of a special referendum to
15increase the rate of the assessment for direct use, a separate
16special question whether to increase the rate of the state
17assessment for clean water. If the secretary determines the
18inclusion of the special question is cost-effective or the
19request demands inclusion.
205. a. Notice of a special referendum described in
21subsection 4 shall be given and the special referendum shall be
22conducted in the manner provided in section 184.5.
23b. If a majority of the producers voting approves the an
24 increase in the rate of the assessment for direct use, the
25council may increase the assessment for to the amount rate
26 approved. However, the The rate of the assessment for direct
27use shall not exceed fifteen cents imposed on each thirty dozen
28eggs produced in this state. If a majority of the producers
29voting approves an increase in the state assessment for
30clean water, the council shall increase the rate of the state
31assessment to a rate not to exceed the rate approved for the
32assessment for direct use.
332. 6. a. If the producer sells eggs to a purchaser outside
34the state of Iowa, the producer shall deduct the assessment for
35direct use from the amount received from the sale and shall
-51-1forward the amount deducted to the council within thirty days
2following each calendar quarter.
3b. If the producer sells eggs to a purchaser outside the
4state of Iowa, the producer shall deduct the state assessment
5for clean water in the same manner as described in paragraph
6“a”.
77. If the producer and processor are the same person, then
8that person shall pay the assessment for direct use or the
9state assessment for clean water to the council within thirty
10days following each calendar quarter.
113. 8. The council may charge interest on any amount of the
12 an assessment for direct use or a state assessment for clean
13water that is delinquent. The rate of interest shall not be
14more than the current rate published in the Iowa administrative
15bulletin by the department of revenue pursuant to section
16421.7. The interest amount shall be computed from the date
17the assessment for direct use or a state assessment for clean
18water is delinquent, unless the council designates a later
19date. The interest amount shall accrue for each month in which
20there is delinquency calculated as provided in section 421.7,
21and counting each fraction of a month as an entire month. The
22interest amount due shall become a part of the assessment for
23direct use or a state assessment for clean water due.
24 Sec. 49. Section 184.4, subsection 1, paragraph e, Code
252017, is amended to read as follows:
26e. The rate of withholding and the total amount of
27assessment for direct use and the state assessment for clean
28water withheld. The council may require the invoice to
29separately indicate the amount withheld for the assessment for
30direct use and for the state assessment for clean water.
31 Sec. 50. Section 184.5, Code 2017, is amended to read as
32follows:
33184.5 Referendums Special referendum conducted to abolish
34the council and terminate imposition of the assessment or state
35assessment.
-52- 11. A special referendum may be called to abolish the council
2and terminate the imposition of the assessment for direct use
3established pursuant to section 184.3 and any state assessment
4for clean water established pursuant to that section.
52. a. A special referendum may be called to terminate
6the state assessment for clean water established pursuant to
7section 184.3.
8b. The secretary shall include as part of a special
9referendum to abolish the council and terminate the assessment
10for direct use described in subsection 1, a separate special
11question whether to terminate the state assessment for clean
12water, if the secretary determines the inclusion of the special
13question is cost-effective or the request demands inclusion.
143. The secretary shall call, and the department shall
15conduct, the a special referendum described in subsection
161 upon the department’s receipt of a petition requesting
17the special referendum. The petition must be signed by at
18least twenty eligible voters or fifty percent of all eligible
19voters, whichever is greater. In order to be an eligible voter
20under this section, a producer must have paid an assessment
21for direct use established under section 184.3, and a state
22assessment for clean water if established under that section,
23 in the year of the special referendum. The special referendum
24shall be conducted within sixty days following receipt of the
25petition. The petitioners shall guarantee payment of the cost
26of the special referendum by providing evidence of financial
27security as required by the department.
282. 4. The following procedures shall apply to a special
29 referendum conducted pursuant to this section:
30a. The department shall publish a notice of the special
31 referendum for a period of not less than five days in at least
32one newspaper of general circulation in the state. The notice
33shall state the voting places, period of time for voting,
34and other information deemed necessary by the department. A
35special referendum shall not be commenced until five days after
-53-1the last date of publication.
2b. Upon signing a statement certifying to the secretary that
3the producer is an eligible voter, a producer is entitled to
4one vote in each special referendum conducted pursuant to this
5section. The department may conduct the special referendum
6by mail, electronic means, or a general meeting of eligible
7voters. The department shall conduct the special referendum
8and count and tabulate the ballots filed during the special
9 referendum within thirty days following the close of the
10special referendum.
11(1) c. If a majority of the total number of eligible
12voters who vote in the special referendum approve approves
13 the continuation of the council and the imposition of the
14 assessment for direct use, the council and the imposition of
15the assessment shall continue as provided in this chapter.
16d. If a majority of eligible voters who vote in the special
17referendum approves the continuation of the state assessment
18for clean water, the imposition of the state assessment shall
19continue for the same period as the assessment for direct use.
20(2) e. If a majority of the total number of eligible
21voters who vote in the special referendum held pursuant to
22this section do does not approve continuing the council and
23the imposition of the assessment for direct use, the secretary
24shall terminate the collection of the assessment for direct use
25established pursuant to section 184.3 and the state assessment
26for clean water if established pursuant to that section, on
27the first day of the year for which the referendum was to
28continue. The secretary shall terminate the activities of the
29council in an orderly manner as soon as practicable after the
30determination is made. An additional initial referendum may be
31held as provided in conducted under section 184.2. However,
32the subsequent additional referendum shall not be held within
33 conducted for at least one hundred eighty days after the date
34that the last such special referendum was conducted.
35f. If a majority of the total number of eligible voters
-54-1who vote in the special referendum does not approve continuing
2the state assessment for clean water, the secretary shall
3terminate the state assessment in an orderly manner as soon as
4practicable after the determination is made. An additional
5special referendum or an additional initial referendum that
6includes a separate special question to establish the state
7assessment for clean water may be conducted under section
8184.2. However, the subsequent special referendum or
9initial referendum shall not be conducted for at least one
10hundred eighty days after the date that the last such special
11referendum or initial referendum was conducted.
12 Sec. 51. Section 184.10, subsection 4, Code 2017, is amended
13to read as follows:
144. Enter into arrangements for the collection of the
15assessment for direct use and any state assessment for clean
16water.
17 Sec. 52. Section 184.10, Code 2017, is amended by adding the
18following new subsection:
19 NEW SUBSECTION. 8. Cooperate with the division of soil
20conservation and water quality of the department of agriculture
21and land stewardship in doing all of the following:
22a. Transferring moneys from the state assessment for clean
23water to the clean water fund created in section 466B.51.
24b. Being reimbursed for reasonable expenses incurred in
25conducting an initial or special referendum to establish,
26continue, or terminate a state assessment for clean water.
27 Sec. 53. Section 184.13, Code 2017, is amended to read as
28follows:
29184.13 Administration of moneys.
301. Subject to the provisions of section 184.3, the
31assessment imposed by this chapter for direct use established
32pursuant to section 184.3, and the state assessment for
33clean water if established pursuant to that section, shall
34be remitted by the purchaser to the council not later than
35thirty days following each calendar quarter during which the
-55-1assessment was collected.
22. Amounts Moneys collected from the assessment for direct
3use shall be deposited in the office of the treasurer of
4state in a separate fund to be known as the Iowa egg fund.
5The department of administrative services shall transfer
6moneys from the fund to the council for deposit into an
7account established by the council in a qualified financial
8institution. The department shall transfer the moneys as
9provided in a resolution adopted by the council. However, the
10department is only required to transfer moneys once during each
11day and only during hours when the offices of the state are
12open.
133. Moneys collected from a state assessment for clean
14water by the council may be deposited in a qualified financial
15institution and shall be transferred to the clean water fund
16created in section 466B.51.
17 Sec. 54. Section 184.14, Code 2017, is amended to read as
18follows:
19184.14 Use of moneys — appropriation — audit.
201. All moneys deposited in the Iowa egg fund and transferred
21to the council as provided in section 184.13 are appropriated
22and shall be used for the administration of this chapter and
23for the payment of claims based upon obligations incurred in
24the performance of activities and functions set forth in this
25chapter.
262. a. Moneys collected, deposited in the fund, and
27transferred to the council as provided in this chapter are
28subject to audit by the auditor of state. The auditor of state
29may seek reimbursement for the cost of the audit. The moneys
30transferred to the council shall be used by the council first
31for the payment of collection expenses, second for payment of
32the costs and expenses arising in connection with conducting
33referendums, third to perform the functions and carry out the
34duties of the council as provided in this chapter, and fourth
35for the cost of audits by the auditor of state.
-56- 1b. Moneys The moneys remaining after the council is
2abolished and the imposition of an the assessment for direct
3use imposed pursuant to section 184.3 is terminated pursuant to
4a special referendum conducted pursuant to section 184.5 shall
5continue to be expended in accordance with this chapter until
6exhausted.
73. If the council is abolished and the assessment for direct
8use is terminated pursuant to a special referendum conducted
9under section 184.5, remaining moneys collected from the state
10assessment for clean water shall be transferred to the clean
11water fund created in section 466B.51. If the state assessment
12for clean water is terminated pursuant to a special referendum
13conducted under that section, remaining moneys collected from
14the state assessment shall be transferred to the clean water
15fund created in section 466B.51.
164. Except as expressly provided in this chapter, moneys
17collected from a state assessment for clean water shall not be
18used for any purpose other than to be transferred to the clean
19water fund created in section 466B.51.
20 Sec. 55. Section 184.18, Code 2017, is amended to read as
21follows:
22184.18 Purchasers outside Iowa.
23The secretary may enter into arrangements with purchasers
24from outside Iowa for payment of the assessment for direct use
25and the state assessment for clean water.
26DIVISION VI
27IOWA TURKEY MARKETING COUNCIL
28 Sec. 56. Section 184A.1, Code 2017, is amended by adding the
29following new subsection:
30 NEW SUBSECTION. 1A. “Assessment” means an excise tax
31imposed on the sale of turkeys which may include an assessment
32for direct use and a state assessment for clean water.
33 Sec. 57. Section 184A.1A, Code 2017, is amended to read as
34follows:
35184A.1A Referendum conducted to establish an Iowa turkey
-57-1marketing council and impose an assessment Referendums and
2assessments.
31. The department shall call and conduct a an initial
4 referendum upon the department’s receipt of a petition which
5is signed by at least twenty eligible voters requesting a
6 an initial referendum to determine whether to establish an
7Iowa turkey marketing council as provided in section 184A.1B
8and impose establish an assessment for direct use imposed as
9provided in section 184A.2.
102. If a council is established, and upon receipt of a
11petition that otherwise complies with the requirements of
12subsection 1, the department shall call and conduct a special
13referendum to establish a state assessment for clean water as
14provided in section 184A.2.
153. Upon receipt of a petition that otherwise complies with
16the requirements of subsection 1, the secretary shall include
17as part of the initial referendum a separate special question
18whether to establish a state assessment for clean water
19described in subsection 2, if the secretary determines the
20inclusion of the separate special question is cost-effective or
21the petition demands inclusion.
224. In order to be an eligible voter under this section,
23a petitioner must be a qualified producer. The initial or
24special referendum shall be conducted by election within sixty
25days following receipt of the petition. The petitioners shall
26guarantee payment of the cost of the referendum by providing
27evidence of financial security as required by the department.
282. 5. The department shall give notice of the an initial
29 referendum on the question whether to establish a council and
30to impose an assessment or special referendum by publishing
31the notice for a period of not less than five days in at least
32one newspaper of general circulation in the state, and for
33a similar period in other newspapers as prescribed by the
34department. The notice shall state the voting places, period
35of time for voting, the manner of voting, the amount of the
-58-1assessment for direct use or the amount of the state assessment
2for clean water, and other information deemed necessary by the
3department. A referendum or special referendum shall not be
4commenced until five days after the last date of publication.
53. a. 6. Each eligible voter who signs a statement
6certifying that the eligible voter is a qualified producer
7shall be an eligible voter under this section. An eligible
8voter is entitled to cast one vote in each initial referendum
9or special referendum conducted under this section. The
10department may conduct the initial referendum or special
11referendum by mail, electronic means, or a general meeting of
12eligible voters.
13b. 7. At the close of the initial referendum or special
14referendum, the department shall count and tabulate the ballots
15cast.
16(1) 8. a. If a majority of eligible voters who vote in
17the an initial referendum approve establishing the council and
18imposing an assessment for direct use under section 184A.2, a
19council and the assessment shall be established, and an the
20 assessment shall be imposed commencing not more than sixty days
21following the initial referendum as determined by the council.
22The council and assessment for direct use shall continue for
23five years as provided in section 184A.12.
24b. If a majority of eligible voters who vote in a special
25referendum approve establishing a state assessment for clean
26water, the state assessment shall be imposed commencing not
27more than sixty days following the special referendum as
28determined by the council.
29(2) c. If a majority of eligible voters who vote in the an
30initial referendum do not approve establishing the council and
31imposing the an assessment for direct use, the council shall
32not be established and an assessment shall not be established
33and imposed until another initial referendum is held conducted
34 under this section and a majority of the eligible voters voting
35approve establishing a council and imposing the an assessment
-59- 1for direct use. If a an initial referendum should fail,
2another initial referendum shall not be held within conducted
3for at least one hundred eighty days from the date of the last
4such initial referendum.
5d. If a majority of the voters do not approve establishing
6a state assessment for clean water, the state assessment shall
7not be established and imposed until the question is approved
8at a special referendum or as part of an initial referendum
9conducted pursuant to this section. If a special referendum
10or an initial referendum which includes the question whether
11to establish a state assessment should fail, the special
12referendum or an initial referendum which includes the question
13shall not be conducted for at least one hundred eighty days
14from the date of the last such special referendum or initial
15referendum which included the separate special question.
164. 9. Within thirty days after approval at the initial
17 referendum to establish a council and to impose an assessment
18for direct use, the department shall organize the council as
19provided in section 184A.1B.
20 Sec. 58. Section 184A.1C, subsection 4, Code 2017, is
21amended to read as follows:
224. Enter into arrangements for the collection, and deposit,
23and use of the assessment for direct use or the collection,
24deposit, and transfer of the state assessment for clean water.
25 Sec. 59. Section 184A.1C, Code 2017, is amended by adding
26the following new subsection:
27 NEW SUBSECTION. 7. Cooperate with the division of soil
28conservation and water quality of the department of agriculture
29and land stewardship in doing all of the following:
30a. Transferring moneys collected from the state assessment
31for clean water to the clean water fund created in section
32466B.51.
33b. Being reimbursed for reasonable expenses incurred in
34conducting an initial or special referendum to establish,
35continue, or terminate a state assessment for clean water.
-60-1 Sec. 60. Section 184A.2, Code 2017, is amended to read as
2follows:
3184A.2 Assessment Assessments — direct use — clean water.
41. If an assessment for direct use or a state assessment for
5clean water is approved by a majority of the eligible voters
6voting at a an initial referendum or special referendum as
7provided in section 184A.1A or 184A.12, all of the following
8shall apply:
9a. The assessment for direct use or the state assessment
10for clean water shall be imposed on each turkey delivered for
11processing.
12b. The council shall establish a rate of the assessment for
13direct use and the state assessment for clean water for each
14turkey delivered for processing. The council may establish
15different rates based on attributes or characteristics of
16turkeys. However, a rate shall not be more than three cents
17for each turkey delivered for processing. The rate of the
18state assessment for clean water shall be established by the
19council at a rate not to exceed the assessment for direct use
20in effect when the referendum establishing the state assessment
21passes.
22c. The assessment for direct use or the state assessment
23for clean water shall be imposed on the producer and collected
24at the time of delivery of a turkey to the processor. The
25assessment for direct use and the state assessment for clean
26water shall be deducted by the processor at the time of
27delivery from the price paid to the producer at the time of the
28sale to the processor. A processor shall remit assessments
29 moneys collected from the assessment for direct use or the
30state assessment for clean water to the council on a monthly
31basis as provided by the council. The council shall deposit
32the remitted assessments moneys collected from the assessment
33for direct use in the Iowa turkey fund as provided in section
34184A.4. The council shall transmit moneys collected from
35the state assessment for clean water to the clean water fund
-61-1created in section 466B.51.
22. The council may enter into agreements with processors
3from outside this state for the payment of the assessment for
4direct use and the state assessment for clean water.
53. a. The council shall provide for a refund of an
6assessment for direct use, and of a state assessment for
7clean water if established, according to rules adopted by the
8council.
9b. The council shall publish and disseminate applications
10for refunds. An application shall allow the applicant to elect
11whether the refund is for the assessment for direct use or a
12state assessment for clean water or both. The council shall
13not approve an application unless the application indicates the
14election.
15c. The council shall transmit any approved application for a
16refund of the state assessment for clean water to the division
17of soil conservation and water quality of the department of
18agriculture and land stewardship which shall pay a refund to
19the producer in the same manner as the council pays a refund to
20the producer under paragraph “a”.
21 Sec. 61. Section 184A.3, Code 2017, is amended to read as
22follows:
23184A.3 Assessment documentation Assessments — documentation.
24A processor receiving turkeys for slaughter shall do all of
25the following:
261. At the time of payment to the producer, the processor
27shall sign and submit a receipt to the producer which includes
28the rate of the assessment for direct use imposed and the
29rate of the state assessment for clean water imposed and the
30amount of the assessment and state assessment for all turkeys
31delivered for processing.
322. Within a period established by rules adopted by the
33council, the processor shall regularly sign and submit to the
34council an invoice or other records required by the council to
35expedite collection of the assessment for direct use and the
-62-1state assessment for clean water. The council may require that
2the processor submit a separate invoice for each purchase. The
3invoice shall be legibly printed and shall not be altered. An
4invoice shall include all of the following:
5a. The name and address of the producer and the seller, if
6the seller’s name is different from the producer.
7b. The name and address of the processor.
8c. The number of turkeys sold.
9d. The date of the delivery.
103. The council may require the invoice to separately
11indicate the amount withheld for the assessment for direct use
12and the state assessment for clean water.
13 Sec. 62. Section 184A.4, Code 2017, is amended to read as
14follows:
15184A.4 Administration of moneys.
161. a. The assessments Moneys from the assessment for direct
17use collected by the council as provided in section 184A.2
18shall be deposited in the office of the treasurer of state in
19a special fund known as the Iowa turkey fund. The department
20of administrative services shall transfer moneys from the
21fund to the council for deposit into the turkey council
22account established by the council pursuant to this section.
23The department shall transfer the moneys as provided in a
24resolution adopted by the council. However, the department is
25only required to transfer moneys once during each day and only
26during hours when the offices of the state are open.
272. b. The council shall establish a turkey council
28account in a qualified financial institution. The council
29shall provide for the deposit of all of the following into the
30account:
31a. (1) The assessment for direct use collected, deposited
32in the Iowa turkey fund, and transferred to the council as
33provided in this section.
34b. (2) Moneys, other than assessments moneys collected from
35the state assessment for clean water, but including moneys in
-63-1the form of gifts, rents, royalties, or license fees received
2by the council pursuant to section 184A.1C.
32. Except as expressly provided in this chapter, moneys
4collected from the state assessment for clean water under this
5section shall not be used for any purpose other than to be
6transferred to the clean water fund created in section 466B.51.
7 Sec. 63. Section 184A.6, Code 2017, is amended to read as
8follows:
9184A.6 Use of moneys in the turkey council account.
101. All moneys deposited in the turkey council account
11pursuant to section 184A.4 shall be used by the council for
12purposes of administering this chapter.
132. The council shall expend moneys from deposited in the
14turkey council account first for the payment of expenses for
15the collection of assessments moneys from the assessment for
16direct use and the state assessment for clean water, second
17for the payment of expenses related to conducting a special
18 referendum as provided in conducted under section 184A.12,
19and third for the cost of performing audits by the auditor of
20state as required in section 184A.9. The council shall expend
21remaining moneys for market development, producer education,
22and the payment of refunds to producers as provided in this
23chapter.
24 Sec. 64. Section 184A.10, Code 2017, is amended to read as
25follows:
26184A.10 Referendum Referendums.
27Upon receipt of a petition signed by at least twenty-five
28producers requesting an initial referendum election to
29determine whether to impose the fee assessment for direct use
30 as provided in section 184A.2 the secretary shall call and
31conduct an initial referendum.
32 Sec. 65. Section 184A.12, Code 2017, is amended to read as
33follows:
34184A.12 Referendum Special referendum conducted to continue
35the council and the imposition of the assessment establishment
-64-1of assessments.
21. The council shall call for a special referendum to
3continue the council established pursuant to section 184A.1A,
4and to continue the assessment for direct use established
5pursuant to section 184A.2.
62. The council shall call for a special referendum to
7continue the state assessment for clean water if established
8pursuant to section 184A.1A. The council may include as
9part of the special referendum to continue the council and
10the assessment for direct use under subsection 1, a separate
11special question whether to continue the state assessment for
12clean water.
133. The council shall call and conduct the a special
14 referendum by election as provided in this section. The
15department shall oversee the conduct of the special referendum.
16The special referendum shall be conducted in the fifth year
17following the initial referendum establishing the council and
18the assessment for direct use as provided in section 184A.10.
192. 4. The following procedures shall apply to a special
20 referendum conducted pursuant to this section:
21a. The council shall publish a notice of the special
22 referendum for a period of not less than five days in at least
23one newspaper of general circulation in the state and for
24a similar period in other newspapers as prescribed by the
25council. The notice shall state the voting places, period of
26time for voting, manner of voting, and other information deemed
27necessary by the council. A referendum shall not be commenced
28until five days after the last date of publication.
29b. Upon signing a statement certifying to the council that
30a producer is an eligible voter, the producer is entitled to
31one vote in each special referendum conducted pursuant to
32this section. In order to be an eligible voter under this
33section, a producer must be a qualified producer who paid an
34 the assessment for direct use and the state assessment for
35clean water, if established, in the year in which the special
-65-1 referendum is held conducted. The council may conduct the
2special referendum by mail, electronic means, or a general
3meeting of eligible voters. The council shall conduct the
4special referendum and count and tabulate the ballots filed
5during the special referendum within thirty days following the
6close of the special referendum.
7(1) c. If a majority of eligible voters who vote in the
8special referendum approves the continuation of continuing the
9council and the imposition of the assessment for direct use,
10the council and the imposition of the assessment shall continue
11as provided in this chapter.
12d. If a majority of eligible voters who vote in the special
13referendum approves continuing the state assessment for clean
14water, the imposition of the state assessment shall continue
15for the same period as the assessment for direct use.
16(2) e. If a majority of eligible voters who vote in the
17special referendum does not approve continuing the council and
18the imposition of the assessment for direct use, the department
19shall terminate the collection of the assessment for direct
20use and the state assessment for clean water if established.
21The termination shall occur on the first day of the year for
22which the special referendum was to continue. The department
23shall terminate the activities of the council in an orderly
24manner as soon as practicable after the date that the special
25 referendum was conducted. A subsequent initial referendum may
26be held conducted as provided in section 184A.1A. However,
27the subsequent initial referendum shall not be held within
28 conducted for at least one hundred eighty days from the date of
29 that the last special referendum was conducted.
30f. If a majority of eligible voters who vote in the special
31referendum does not approve continuing the state assessment
32for clean water, the department shall terminate the state
33assessment in the same manner as described in paragraph “e”. A
34subsequent special referendum to establish a state assessment
35for clean water may be conducted as provided in section
-66-1184A.1A. However, the subsequent special referendum shall not
2be conducted for at least one hundred eighty days from the date
3that the last special referendum was conducted.
4 Sec. 66. Section 184A.12A, Code 2017, is amended to read as
5follows:
6184A.12A Referendum Special referendum conducted to abolish
7the council and terminate the imposition of the assessment
8 assessments.
91. A The department may call and conduct a special
10 referendum may be called to abolish the council established
11pursuant to sections section 184A.1A and 184A.1B, and, to
12terminate the imposition of the assessment for direct use
13 established pursuant to section 184A.2, and to terminate the
14state assessment for clean water established pursuant to
15section 184A.2.
162. a. The department shall call and conduct, as provided
17in subsection 3, a special referendum to terminate the state
18assessment for clean water established pursuant to section
19184A.2.
20b. The department shall include as part of a special
21referendum to continue the council and the state assessment for
22direct use conducted under subsection 1, a separate special
23question to continue the state assessment for clean water, if
24the department determines the inclusion of the special question
25is cost-effective or a petition described in subsection 3
26demands inclusion.
273. The department shall call and conduct the special
28 referendum upon the department’s receipt of a petition
29requesting the special referendum or the inclusion of a
30separate special question as described in this section. The
31petition must be signed by at least twenty eligible voters or
32fifty percent of all eligible voters, whichever is greater. In
33order to be an eligible voter under this section, a producer
34must be a qualified producer who paid an the assessment
35for direct use and the state assessment for clean water, if
-67-1established, in the year in which the special referendum is
2held conducted. The special referendum shall be conducted by
3election within sixty days following receipt of the petition.
4The petitioners shall guarantee payment of the cost of the
5special referendum by providing evidence of financial security
6as required by the department.
72. 4. The following procedures shall apply to a special
8 referendum conducted pursuant to this section:
9a. The department shall publish a notice of the special
10 referendum for a period of not less than five days in at least
11one newspaper of general circulation in the state and for
12a similar period in other newspapers as prescribed by the
13department. The notice shall state the voting places, period
14of time for voting, manner of voting, and other information
15deemed necessary by the department. A special referendum
16shall not be commenced until five days after the last date of
17publication.
18b. Upon signing a statement certifying to the department
19that a producer is an eligible voter, the producer is entitled
20to one vote in each special referendum conducted pursuant
21to this section. The department may conduct the special
22 referendum by mail, electronic means, or a general meeting of
23eligible voters. The department shall conduct the special
24 referendum and count and tabulate the ballots filed during the
25special referendum within thirty days following the close of
26the special referendum.
27(1) c. If a majority of eligible voters who vote in the
28special referendum approves the continuation of the council and
29the imposition of the assessment for direct use, the council
30and the imposition of the assessment shall continue as provided
31in this chapter.
32d. If a majority of eligible voters who vote in the special
33referendum approves the continuation of the state assessment
34for clean water, the state assessment shall continue for the
35same period as the assessment for direct use.
-68- 1(2) e. If a majority of eligible voters who vote in the
2special referendum does not approve continuing the council and
3the imposition of the assessment for direct use, the department
4shall terminate the collection of the assessment for direct use
5 on the first day of the year for which the special referendum
6was to continue. The department shall terminate the activities
7of the council in an orderly manner as soon as practicable
8after the special referendum. A subsequent initial referendum
9may be held conducted as provided in section 184A.1A. However,
10the subsequent initial referendum shall not be held within
11 conducted for at least one hundred eighty days from the date of
12 that the last special referendum was conducted.
13f. If a majority of eligible voters who vote in the special
14referendum does not approve continuing the state assessment
15for clean water, the department shall terminate the collection
16of the state assessment in the same manner as described in
17paragraph “e”. A subsequent special referendum to establish a
18state assessment for clean water may be called and conducted
19under section 184A.1A, or a separate special question to
20establish the state assessment and included as part of a
21subsequent initial referendum may be called and conducted under
22that section. However, the subsequent special referendum
23or subsequent initial referendum that includes the special
24question shall not be conducted for at least one hundred eighty
25days from the date that the last special referendum terminating
26the state assessment was conducted.
27DIVISION VII
28IOWA SOYBEAN ASSOCIATION
29 Sec. 67. Section 185.1, subsection 17, Code 2017, is amended
30to read as follows:
3117. “State assessment” or “assessment” means an excise tax
32on each bushel of soybeans marketed in this state which is
33imposed pursuant to a any of the following:
34a. A state assessment for direct use pursuant to a
35promotional order as provided in this chapter.
-69- 1b. A state assessment for clean water.
2 Sec. 68. Section 185.1A, Code 2017, is amended to read as
3follows:
4185.1A Recognition of Iowa soybean association.
51. The corporation known as the Iowa soybean association
6incorporated under the laws of this state shall be entitled
7to the benefits of this chapter by filing each year with the
8secretary a verified proof of its organization, the names
9of its officers, and any other information required by the
10secretary.
112. The Iowa soybean association is a qualified state soybean
12board for purposes of administering a national assessment.
13For purposes of this chapter, “association” shall include a
14successor qualified state soybean board or other entity that is
15recognized by federal law to administer the national assessment
16in Iowa.
17 Sec. 69. Section 185.2, Code 2017, is amended to read as
18follows:
19185.2 Petition for election Referendums.
201. Upon receipt of a petition signed by at least five
21hundred producers requesting an initial referendum election
22 to determine whether a promotional order shall be placed in
23effect, the secretary shall call an the initial referendum
24election to be conducted within sixty days following receipt
25of the petition. Producers shall vote by written ballot in
26the manner provided by this chapter for an initial referendum
27elections.
282. a. If a promotional order is placed into effect, and
29upon receipt of a petition that otherwise complies with the
30requirements of this section, the secretary shall conduct a
31special referendum to establish a state assessment for clean
32water. The special referendum shall be conducted in the same
33manner as an initial referendum described in subsection 1.
34b. Upon receipt of a petition that otherwise complies with
35the requirements of this section, the secretary shall include
-70-1as part of the initial referendum a separate special question
2whether to establish and impose a state assessment for clean
3water described in this section, if the secretary determines
4the inclusion of the special question is cost-effective or the
5petition demands inclusion.
6 Sec. 70. Section 185.11, Code 2017, is amended by adding the
7following new subsection:
8 NEW SUBSECTION. 5. Cooperate with the division of soil
9conservation and water quality of the department of agriculture
10and land stewardship in doing all of the following:
11a. Transferring moneys collected from the state assessment
12for clean water to the clean water fund created in section
13466B.51.
14b. Being reimbursed for reasonable expenses incurred in
15conducting an initial or special referendum to establish,
16continue, or terminate a state assessment for clean water.
17 Sec. 71. Section 185.13, subsection 4, Code 2017, is amended
18to read as follows:
194. Enter into arrangements for collection of the state
20assessment for direct use and any state assessment for clean
21water imposed on soybeans marketed in this state.
22 Sec. 72. Section 185.16, Code 2017, is amended to read as
23follows:
24185.16 Notice of referendum.
251. Notice of a referendum election to initiate or extend a
26promotional order shall be given by publication in a newspaper
27of general circulation in this state at least ten days prior
28to the date of the referendum and in any other reasonable
29manner as may be determined by the secretary for the initial
30referendum and by the board for extension of the promotional
31order.
322. Notice of a special referendum to establish or continue
33a state assessment for clean water shall be given in the same
34manner as described in subsection 1.
35 Sec. 73. Section 185.17, Code 2017, is amended to read as
-71-1follows:
2185.17 Contents of notice.
3The A notice of referendum described in section 185.16 shall
4set forth the period of time for voting, voting places and such
5other information as the secretary may deem necessary in an
6initial referendum or special referendum. The board shall make
7such determinations in any subsequent initial referendum or
8special referendum.
9 Sec. 74. Section 185.18, Code 2017, is amended to read as
10follows:
11185.18 Counting.
12At the close of a referendum voting period, the secretary
13shall count and tabulate the ballots cast during the referendum
14 period of the initial referendum or special referendum.
15 Sec. 75. Section 185.20, Code 2017, is amended to read as
16follows:
17185.20 Producers only to vote.
18Only producers are eligible to vote in an election for
19directors or a, an initial referendum election, or a special
20referendum, and only in the district in which they reside.
21A producer shall sign an affidavit at the time of voting
22certifying the producer’s eligibility to vote. Each qualified
23producer shall be entitled to one vote.
24 Sec. 76. Section 185.21, Code 2017, is amended to read as
25follows:
26185.21 Assessment State assessments — rates.
271. A state assessment which for direct use that is adopted
28 established upon the initiation of a promotional order shall
29be collected imposed during the effective period of the
30promotional order, and shall be of no force or effect upon
31termination of the promotional order.
322. a. The state assessment for direct use collected as part
33of a promotional order shall be paid into the soybean promotion
34fund established in section 185.26.
35b. The state assessment for clean water if established
-72-1pursuant to section 185.2 or continued pursuant to section
2185.25 shall be collected by the board and may be deposited
3in a qualified financial institution until transferred to the
4clean water fund created in section 466B.51.
53. The rate of the state assessment for direct use
6established as part of a promotional order shall be imposed as
7follows:
8a. If the national assessment is being collected, the rate
9of the state assessment for direct use shall be one-quarter of
10one percent of the net market price of the soybeans marketed
11in this state.
12b. If the national assessment is not being collected, the
13rate of the state assessment for direct use shall be one-half
14of one percent of the net market price of soybeans marketed in
15this state.
164. The rate of the state assessment for clean water shall
17be imposed as follows:
18a. If the national assessment is being collected, the rate
19of the state assessment for clean water shall be established
20by the board at a rate not to exceed the combined rate of the
21state assessment for direct use and the national assessment as
22described in subsection 3, paragraph “a”.
23b. If the national assessment is not being collected,
24the rate of the state assessment for clean water shall be
25established by the board at a rate not to exceed the rate of
26the state assessment for direct use as described in subsection
273, paragraph “b”.
28 Sec. 77. Section 185.22, Code 2017, is amended to read as
29follows:
30185.22 Promotional order Invoice.
311. After a promotional order has been issued, the first
32purchaser at the time of payment for soybeans shall show the
33total amount of the state assessment for direct use, and the
34state assessment for clean water, deducted from the sale on the
35purchase invoice.
-73- 12. The board may require the invoice to separately indicate
2the amount withheld for the state assessment for direct use
3and the state assessment for clean water. The invoice may
4correspond to any invoice required to collect the national
5assessment.
6 Sec. 78. Section 185.23, Code 2017, is amended to read as
7follows:
8185.23 Deduction of assessment.
9The state assessment for direct use and any state assessment
10for clean water shall be deducted from the purchase price of
11soybeans at the time of sale, and forwarded to the board by the
12first purchaser in the manner and at intervals determined by
13the board.
14 Sec. 79. Section 185.24, Code 2017, is amended to read as
15follows:
16185.24 Termination of a promotional order.
171. If a promotional order is not extended as determined
18by a special referendum, the secretary and the board shall
19terminate the promotional order in an orderly manner as soon
20as practicable. The termination of the promotional order
21shall terminate the state assessment for direct use. After
22all moneys collected from the state assessment for direct use
23 are expended, the board shall remain in existence as provided
24in its articles of incorporation or bylaws. The directors
25shall no longer be elected as required in this chapter. The
26ex officio directors shall no longer serve on the board. The
27board shall cease to administer this chapter, and the board
28shall no longer carry out its duties or exercise its powers
29as provided in this chapter. However, if a future initial
30 referendum passes, the board shall be reorganized by the
31secretary and the directors then serving on the board shall be
32deemed to be the same directors who served on the board when
33the promotional order was terminated. The directors shall
34serve out their terms as though there had been no lapse of time
35between the two effective orders.
-74- 12. The termination of the promotional order shall terminate
2the state assessment for clean water. The board shall transfer
3any remaining moneys collected from the state assessment for
4clean water to the clean water fund created in section 466B.51.
5 Sec. 80. Section 185.25, Code 2017, is amended to read as
6follows:
7185.25 Special referendum referendums — producer petition
8 petitions.
91. Upon receipt of a petition described in subsection 3,
10the secretary shall call a special referendum to extend the
11promotional order including continuing the state assessment for
12direct use as part of the promotional order.
132. a. Upon receipt of a petition described in subsection 3,
14the secretary shall call a special referendum to continue the
15state assessment for clean water.
16b. The secretary shall include as part of the special
17referendum conducted under subsection 1 a separate special
18question whether to continue the state assessment for clean
19water, if the secretary determines the inclusion of the special
20question is cost-effective or the petition demands inclusion.
213. The secretary shall call a special referendum described
22in this sectionnot less than one hundred fifty nor more than
23two hundred forty days from a four-year anniversary of the
24effective date of an initial promotional order upon receipt
25of a petition, signed within that same period by a number of
26producers equal to or greater than one percent of the number of
27producers reported in the most recent United States census of
28agriculture, requesting a the special referendum to determine
29whether to extend the promotional order, and the secretary
30shall call a the special referendum to be conducted not earlier
31than thirty days before the four-year anniversary date.
324. a. If the secretary determines that extension of
33the promotional order is not favored by a majority of the
34producers voting in the special referendum, the promotional
35order shall be terminated as provided in section 185.24. The
-75-1state assessment for clean water if established shall also
2be terminated. If the promotional order is terminated under
3this paragraph, another special referendum to reestablish the
4promotional order shall not be held within conducted for at
5least one hundred eighty days after the date that the most
6recent special referendum was conducted.
7b. If the secretary determines that a continuance of the
8state assessment for clean water is not favored by a majority
9of the producers voting in the special referendum, the state
10assessment shall be terminated as provided in section 185.24.
11If the state assessment for clean water is terminated under
12this paragraph, another special referendum establishing the
13state assessment or another special referendum that includes
14a separate special question to establish the state assessment
15shall not be conducted for at least one hundred eighty days
16after the date that the last special referendum terminating the
17state assessment was conducted.
185. A succeeding special referendum shall be called by the
19secretary upon the petition of a number of producers equal
20to or greater than one percent of the number of producers
21reported in the most recent United States census of agriculture
22requesting a the special referendum, who shall guarantee the
23costs of the referendum.
246. a. If no valid petition is received by the secretary
25within the time period described above in subsection 1, or if a
26petition is received but the special referendum to extend the
27promotional order passes, the promotional order shall continue
28in effect for four additional years from the anniversary of its
29effective date.
30b. If no valid petition for a special referendum to
31continue the state assessment for clean water is received by
32the secretary within the time period described in subsection
333, the state assessment shall continue in effect for four
34additional years from the anniversary of the effective date of
35the promotional order.
-76-1 Sec. 81. NEW SECTION. 185.25A Special referendum — change
2in state assessment rate for clean water.
31. If a national assessment is imposed and upon receipt
4of a petition that otherwise complies with the requirements
5of section 185.25, the secretary shall conduct a special
6referendum to change the rate of the state assessment for
7clean water established by the board at a rate not to exceed
8the combined rate of the national assessment and the state
9assessment for direct use as provided in section 185.21,
10subsection 3, paragraph “a”. The special referendum shall be
11conducted in the same manner as a special referendum conducted
12pursuant to section 185.25. However, the special referendum
13may be conducted in the same manner and in conjunction with a
14referendum to change the rate of the national assessment, to
15the extent permitted by federal law.
162. If a national assessment is not imposed and upon receipt
17of a petition that otherwise complies with the requirements
18of section 185.25, the secretary shall conduct a special
19referendum to change the rate of the state assessment for clean
20water established by the board to a rate not to exceed the rate
21of the state assessment for direct use as provided in section
22185.21, subsection 3, paragraph “b”. The special referendum
23shall be conducted in the same manner as a special referendum
24conducted pursuant to section 185.25.
253. If a special referendum or special question to change
26the rate of the state assessment for clean water does not pass,
27the result of the vote shall not affect the existence or period
28during which the state assessment is in effect.
29 Sec. 82. Section 185.26, Code 2017, is amended to read as
30follows:
31185.26 Administration of moneys.
321. a. The Moneys from a state assessment for direct use
33imposed as part of a promotional order and collected by the
34board shall be deposited in a special fund known as the soybean
35promotion fund, in the office of the treasurer of state. The
-77-1fund may also contain include any gifts or federal or state
2grant received by the board. Moneys The moneys collected,
3deposited into the fund, and transferred to the board, as
4provided in this chapter, shall be subject to audit by the
5auditor of state.
6b. The department of administrative services shall
7transfer moneys from the fund to the board for deposit into an
8account known as the soybean checkoff account which shall be
9established by the board in a qualified financial institution.
10The department shall transfer the moneys into the account as
11provided in a resolution adopted by the board. However, the
12department is only required to transfer moneys once during each
13day and only during hours when the offices of the state are
14open.
15c. From moneys collected, deposited, and transferred to the
16soybean checkoff account as provided in this section, the board
17shall first pay the costs of initial and special referendums,
18elections, and other expenses incurred in the administration of
19this chapter, before moneys may be expended to carry out the
20purposes of the board as provided in section 185.11. The board
21shall strictly segregate moneys in the soybean checkoff account
22from all other moneys of the board. Moneys in the soybean
23checkoff account shall be expended by the board exclusively for
24carrying out the purposes of the board as provided in section
25185.11. The account shall be subject to audit by the auditor
26of state.
272. Moneys from a state assessment for clean water collected
28by the board may be deposited in a qualified financial
29institution and shall be transferred to the clean water fund
30created in section 466B.51.
312. 3. The fiscal year of the association shall commence on
32October 1 and end on September 30.
33 Sec. 83. Section 185.27, Code 2017, is amended to read as
34follows:
35185.27 Refund of assessment.
-78- 11. a. A producer who has sold soybeans and had the state
2assessment for direct use deducted from the sale price may, by
3application in writing to the board, secure a refund in the
4amount deducted. The refund shall be payable only when the
5application is made to the board within sixty days after the
6deduction.
7b. A producer who has sold soybeans and had the state
8assessment for clean water deducted from the sale price may,
9by application in writing to the board, secure a refund of the
10amount deducted payable by the division of soil conservation
11and water quality of the department of agriculture and land
12stewardship. The board shall forward approved applications to
13the division within sixty days after the deduction.
142. Application forms shall be given by the board to
15each first purchaser when requested and the first purchaser
16shall make the applications available to any producer. Each
17application for refund by a producer shall have attached
18thereto proof of assessment deducted. The proof of assessment
19may be in the form of a duplicate or certified copy of the
20purchase invoice by the first purchaser. The board shall
21have thirty days from the date the application for refund is
22received to remit the refund to the producer. The form shall
23allow the applicant to elect whether the refund is for the
24state assessment for direct use or for the state assessment
25for clean water or both. The board shall not approve an
26application unless the application indicates the election.
27 Sec. 84. Section 185.28, Code 2017, is amended to read as
28follows:
29185.28 Use of moneys — appropriation.
301. All moneys collected, deposited, and transferred to the
31board as provided in this chapter, are appropriated and shall
32be used for the administration of this chapter by the board and
33for the payment of claims by the board based upon obligations
34incurred in the performance of board activities and functions
35provided in this chapter.
-79- 12. Except as expressly provided in this chapter, moneys
2collected from the state assessment for clean water under this
3section shall not be used for any purpose other than to be
4transferred to the clean water fund created in section 466B.51.
5 Sec. 85. Section 185.29, Code 2017, is amended to read as
6follows:
7185.29 Remission of remaining moneys.
81. After the board has paid the costs of elections,
9referendum, necessary board expenses, and administrative costs,
10the remaining moneys collected, deposited in the soybean
11promotion fund, and transferred to the soybean checkoff account
12as provided in section 185.26 shall be expended by the board as
13is necessary to carry out its purposes as provided in section
14185.11.
152. Notwithstanding subsection 1, moneys collected from
16a state assessment for clean water by the board shall be
17transferred to the clean water fund created in section 466B.51.
18 Sec. 86. Section 185.33, Code 2017, is amended to read as
19follows:
20185.33 Report.
21The board shall each year prepare and submit a report
22summarizing the activities of the board under this chapter to
23the auditor of state and the secretary of agriculture. The
24report shall show all income, expenses, and other relevant
25information concerning fees state assessments for direct use
26 collected and expended under the provisions of this chapter.
27DIVISION VIII
28IOWA CORN PROMOTION BOARD
29 Sec. 87. Section 185C.1, subsection 17, Code 2017, is
30amended to read as follows:
3117. “State assessment” means a state excise tax on each
32bushel of corn marketed in this state which is imposed as part
33of a promotional order to administer this chapter pursuant to a
34state assessment for direct use or a state assessment for clean
35water.
-80-1 Sec. 88. Section 185C.2, Code 2017, is amended to read as
2follows:
3185C.2 Petition for election Referendums.
41. Upon receipt of a petition signed by at least five
5hundred producers requesting an initial referendum election
6 to determine whether a promotional order shall be placed in
7effect, the secretary shall call an initial referendum election
8 to be conducted within sixty days following receipt of the
9petition. Producers shall vote by written ballot in the manner
10provided by this chapter for a referendum elections to approve
11the passage of a promotional order.
122. a. If a promotional order is placed into effect, and
13upon receipt of a petition that otherwise complies with the
14requirements of subsection 1, the secretary shall conduct a
15special referendum to establish a state assessment for clean
16water.
17b. Upon receipt of a petition that otherwise complies with
18the requirements of subsection 1, the secretary shall include
19as part of the initial referendum a separate special question
20whether to establish a state assessment for clean water as
21described in this section, if the secretary determines the
22inclusion of the special question is cost-effective or the
23petition demands inclusion.
24 Sec. 89. Section 185C.3, Code 2017, is amended to read as
25follows:
26185C.3 Establishment of corn promotion board.
27If a majority of the producers voting in the an initial
28 referendum election conducted pursuant to section 185C.2
29 approve the passage of the promotional order, an Iowa corn
30promotion board shall be established.
31 Sec. 90. Section 185C.11, subsection 1, Code 2017, is
32amended by adding the following new paragraph:
33 NEW PARAGRAPH. j. Cooperate with the division of soil
34conservation and water quality of the department of agriculture
35and land stewardship in doing all of the following:
-81- 1(1) Transferring moneys collected from the state assessment
2for clean water to the clean water fund created in section
3466B.51.
4(2) Being reimbursed for reasonable expenses incurred
5in conducting an initial or special referendum to establish,
6continue, or terminate a state assessment for clean water.
7 Sec. 91. Section 185C.11A, Code 2017, is amended by adding
8the following new subsection:
9 NEW SUBSECTION. 5. The board shall not expend moneys
10collected from the state assessment for clean water to support
11the program.
12 Sec. 92. Section 185C.15, Code 2017, is amended to read as
13follows:
14185C.15 Term of promotional order — automatic extension.
15A promotional order shall be effective for four years from
16its effective date. Upon the date that an the promotional
17 order is due to expire the order shall automatically be
18extended for an additional four years from the date that the
19order or last extension would otherwise expire, except as
20provided in section 185C.24. A state assessment for clean
21water shall continue for the same period as the promotional
22order unless the state assessment for clean water is terminated
23as provided in section 185C.24.
24 Sec. 93. Section 185C.21, Code 2017, is amended to read as
25follows:
26185C.21 State assessment assessments — rates.
271. The board shall determine and set the rate of the state
28assessment rate for direct use as part of the promotional
29order. State assessments A state assessment for direct use
30 collected pursuant to the promotional order shall be paid
31into the corn promotion fund established in section 185C.26.
32Except as provided in subsection 2 subsections 2 and 3, a state
33assessment shall not exceed one-quarter of one cent per bushel
34upon corn marketed in this state.
352. Upon request of the board, the secretary shall call
-82-1a special referendum for producers to vote on whether to
2authorize an increase in the rate of the state assessment
3for direct use above one-quarter of one cent per bushel,
4notwithstanding subsection 1. The special referendum shall be
5conducted as provided in this chapter for referendum elections
6 referendums. However, the special referendum shall not affect
7the existence or length of the promotional order in effect. If
8a majority of the producers voting in the special referendum
9approve the increase, the board may increase the assessment to
10the amount approved in the special referendum. The board shall
11establish the effective date of a rate change. However, the
12rate of a state assessment for direct use shall not exceed a
13scheduled maximum rate determined as follows:
14a. Before September 1, 2014, one cent.
15b. For each marketing year of the period beginning September
161, 2014, and ending August 31, 2019, two cents.
17c. For each marketing year beginning on and after September
181, 2019, three cents.
193. The rate of the state assessment for clean water shall
20be established by the board not to exceed the rate of the
21state assessment for direct use in effect on the date that the
22special referendum establishing the state assessment for clean
23water is approved.
244. a. Upon request of the board, the secretary shall
25call a special referendum for producers to vote on whether to
26authorize an increase in the state assessment for clean water
27to be established by the board at a rate not to exceed the rate
28in effect under subsection 2. The special referendum shall be
29conducted in the same manner as provided in that subsection.
30b. Upon request of the board, the secretary shall include
31as part of the special referendum conducted under subsection
322 a separate special question whether to increase the rate
33of the state assessment for clean water to be established by
34the board at a rate not to exceed the rate of the proposed
35increased amount of the state assessment for direct use, if the
-83-1secretary determines the inclusion of the special question is
2cost-effective or the request demands inclusion.
3 Sec. 94. Section 185C.22, Code 2017, is amended to read as
4follows:
5185C.22 State assessment assessments on purchase invoice.
61. After a promotional order has been issued, the first
7purchaser at the time of payment for corn shall show the
8total amount of state assessment for direct use and the state
9assessment for clean water deducted from the sale on the
10purchase invoice.
112. The board may require the invoice to separately indicate
12the amount withheld for the state assessment for direct use
13and the state assessment for clean water. The invoice may
14correspond to any invoice required to collect the federal
15assessment pursuant to section 185C.25A.
16 Sec. 95. Section 185C.24, Code 2017, is amended to read as
17follows:
18185C.24 Cancellation, and suspension, and termination.
191. The board shall be suspended and board operations and
20terms of members shall cease upon either of the following
21events:
22a. The state assessment for direct use is terminated
23pursuant to section 185C.25.
24b. The state assessment for direct use is suspended pursuant
25to section 185C.25A.
262. However, notwithstanding subsection 1, the board shall
27continue to operate until proceeds remaining in the corn
28promotion fund are disbursed. Disbursement shall be made as
29provided for payment of moneys under section 185C.26.
303. If a state assessment for direct use and the federal
31assessment are not imposed, the board shall continue to
32transfer remaining moneys collected from the state assessment
33for clean water to the clean water fund created in section
34466B.51.
353. 4. The secretary shall order that the board be
-84-1reconstituted upon either of the following events:
2a. Recommencement of the promotional order, pursuant to
3section 185C.25.
4b. Termination of the promotional order’s suspension,
5pursuant to section 185C.25A.
64. 5. Until the board is reconstituted under section
7185C.8, the secretary has the powers to perform the duties of
8the board as provided in this chapter, including the collection
9of the state assessment for direct use at the rate in effect
10on the date when collection of the state assessment for direct
11use was terminated pursuant to section 185C.25. However, the
12secretary shall not expend funds moneys collected from the
13 state assessment for direct use.
146. Until the board is reconstituted, the secretary may
15collect the state assessment for clean water equal to the rate
16when the state assessment for clean water was terminated. The
17secretary shall transfer the collected moneys to the clean
18water fund created in section 466B.51.
19 Sec. 96. Section 185C.25, Code 2017, is amended to read as
20follows:
21185C.25 Effective period of promotional order and state
22assessments — special referendums — termination.
231. a. A state assessment for direct use adopted upon the
24initiation of a promotional order shall be collected during the
25effective period of the order, and shall have no effect upon
26termination of the promotional order.
27b. A state assessment for clean water if established shall
28be collected during the effective period of the promotional
29order, and shall have no effect upon the termination of the
30promotional order. However, the state assessment for clean
31water shall still be collected during any period in which a
32federal assessment is collected, unless the state assessment is
33terminated under this section.
342. Upon adoption or extension of the promotional order, the
35order shall be effective for the period described in section
-85-1185C.15 unless the order is terminated as provided in this
2section or suspended as provided in section 185C.25A.
32. 3. The secretary shall call a special referendum to
4terminate the promotional order including the state assessment
5for direct use imposed as part of the promotional order, and
6the state assessment for clean water if established.
74. a. The secretary shall call, as provided in subsection
85, a special referendum to terminate the state assessment for
9clean water if established.
10b. The secretary shall include as part of the special
11referendum conducted under subsection 3, a separate special
12question whether to terminate the state assessment for clean
13water, if the secretary determines the inclusion of the
14special question is cost-effective or the petition described in
15subsection 5 demands inclusion.
165. The secretary shall call a special referendum under this
17sectionif all the following conditions are met:
18a. The secretary receives a petition signed by at least five
19percent of the state’s producers reported in the most recent
20United States census of agriculture.
21b. The petition is signed by at least five percent of the
22state’s producers residing in each of five districts according
23to the most recent United States census of agriculture.
24c. The secretary receives the petition not less than one
25hundred fifty days from the date that the order is due to
26expire, but receives the petition not more than two hundred
27forty days before the date that the order is due to expire.
283. 6. a. The secretary shall conduct the election as
29provided for a special referendum to terminate the promotional
30order including the state assessment for direct use and the
31state assessment for clean water in the same manner as an
32initial referendum conducted under this chapter, including
33sections 185C.16 through 185C.20.
34b. The secretary shall conduct the special referendum to
35terminate the state assessment for clean water in the same
-86-1manner as an initial referendum conducted under this chapter,
2including sections 185C.16 through 185C.20.
37. a. If upon counting and tabulating the ballots, the
4secretary determines that a majority of voting producers favor
5 favors termination of the state assessment for direct use, the
6secretary, in cooperation with the board, shall terminate the
7state assessment for direct use in an orderly manner as soon
8as practicable.
9b. If upon counting and tabulating the ballots, the
10secretary determines that a majority of voting producers favors
11termination of the state assessment for clean water, the
12secretary, in cooperation with the board, shall terminate the
13state assessment for clean water in an orderly manner as soon
14as practicable.
154. 8. a. If the a state assessment for direct use is
16terminated, another an initial referendum shall not be held
17 conducted for at least one hundred eighty days from the date
18that the state assessment is terminated.
19b. If a state assessment for clean water is terminated,
20another special referendum or another special referendum
21which includes a separate special question to establish a
22state assessment shall not be conducted for at least one
23hundred eighty days from the date that the state assessment is
24terminated.
259. A succeeding special referendum to restore the state
26 assessment for direct use shall be called by the secretary
27upon receipt of a petition of at least five hundred producers
28requesting a the special referendum. The petitioners shall
29guarantee the costs of the succeeding referendum. The
30secretary shall conduct the election special referendum as
31provided for a an initial referendum under this chapter
32section 185C.2 not later than one hundred fifty days after
33the secretary receives the petition. If a referendum held
34 conducted pursuant to this subsection is approved by producers,
35the promotional order shall commence no later than two hundred
-87-1ten days following the date that the petition is received by
2the secretary.
310. a. A succeeding special referendum to restore the state
4assessment for clean water shall be called by the secretary
5upon petition that otherwise complies with a petition to
6restore the state assessment for direct use under subsection 9.
7The secretary shall conduct the succeeding special referendum
8in the same manner as a succeeding special referendum conducted
9under that subsection. If a special referendum conducted
10pursuant to this paragraph is approved by producers, the state
11assessment for clean water shall commence not later than two
12hundred ten days following the date that the petition is
13received by the secretary.
14b. Upon receipt of a petition that otherwise complies
15with a petition to restore the state assessment for direct
16use under subsection 9, the secretary shall include as part
17of the succeeding special referendum conducted under that
18subsection a separate special question whether to restore the
19state assessment for clean water, if the secretary determines
20the inclusion of the special question is cost-effective or the
21request demands inclusion.
22 Sec. 97. Section 185C.25A, Code 2017, is amended to read as
23follows:
24185C.25A Collection of federal assessment.
251. a. Prior to the collection of the federal assessment,
26the board may approve the continued collection of the state
27assessment for direct use as part of the promotional order
28 during the collection of the federal assessment.
29b. If a federal assessment is collected, the state
30assessment for clean water, if established, shall continue to
31be imposed until terminated under section 185C.25.
322. If the collection of amount collected from the state
33assessment for direct use would be in addition to, and not an
34offset against, the collection of amount collected from the
35federal assessment, the board shall suspend the collection
-88-1of the state assessment. On the date of the termination or
2suspension of the federal assessment, the promotional order
3shall recommence and the suspension of the state assessment for
4direct use shall terminate. The termination or suspension of
5the federal assessment shall not affect the state assessment
6for clean water.
7 Sec. 98. Section 185C.26, Code 2017, is amended to read as
8follows:
9185C.26 Deposit of moneys — corn promotion fund —
10administration of moneys.
111. a. A Moneys from a state assessment for direct use
12imposed as part of a promotional order and collected by the
13board from a sale of corn shall be deposited in the office of
14the treasurer of state in a special fund known as the corn
15promotion fund. The corn promotion fund may also include
16any gifts, rents, royalties, interest, license fees, or a
17federal or state grant received by the board. Moneys The
18moneys collected, deposited in the corn promotion fund, and
19transferred to the board as provided in this chapter shall be
20subject to audit by the auditor of state. The auditor of state
21may seek reimbursement for the cost of the audit from moneys
22deposited in the fund as provided in this chapter.
23b. The department of administrative services shall transfer
24moneys from the corn promotion fund to the board for deposit
25into an account established by the board in a qualified
26financial institution. The department shall transfer the
27moneys as provided in a resolution adopted by the board.
28However, the department is only required to transfer moneys
29once during each day and only during hours when the offices of
30the state are open.
31c. From moneys collected, the board shall first pay all
32the direct and indirect costs incurred by the secretary and
33the costs of initial and special referendums, elections, and
34other expenses incurred in the administration of this chapter,
35before moneys may be expended to carry out the purposes of this
-89-1chapter as provided in section 185C.11.
22. Moneys from a state assessment for clean water collected
3by the board may be deposited in a qualified financial
4institution and shall be transferred to the clean water fund
5created in section 466B.51.
6 Sec. 99. Section 185C.27, Code 2017, is amended to read as
7follows:
8185C.27 Refund of assessment state assessments.
91. a. A producer who has sold corn and had a state
10assessment for direct use deducted from the sale price, by
11application in writing to the board, may secure a refund in the
12amount deducted. The refund shall be payable only when the
13application shall have been made to the board within sixty days
14after the deduction. The board shall have thirty days from the
15date the application for refund is received to remit the refund
16to the producer.
17b. A producer who has sold corn and had the state
18assessment for clean water deducted from the sale price may,
19by application in writing to the board, secure a refund of the
20amount deducted payable by the division of soil conservation
21and water quality of the department of agriculture and land
22stewardship. The board shall forward approved applications to
23the division within sixty days after the deduction.
242. Application forms shall be given by the board to
25each first purchaser when requested and the first purchaser
26shall make the applications available to any producer. Each
27application for refund by a producer shall have attached to
28the application proof of the state assessment deducted. The
29proof of state assessment may be in the form of a duplicate
30or certified copy of the purchase invoice by the first
31purchaser. The board shall have thirty days from the date the
32application for refund is received to remit the refund to the
33producer. The form shall allow the applicant to elect whether
34the refund is for the state assessment for direct use or the
35state assessment for clean water or both. The board shall not
-90-1approve an application unless the application indicates the
2election.
33. a. The board may provide for refunds of a federal
4assessment as provided by federal law. Unless inconsistent
5with federal law, refunds shall be made under section 185C.26.
6b. The board may provide for filing applications for a
7refund of the state assessment for direct use and the state
8assessment for clean water based on applicable procedures
9for the filing of applications for refunds of the federal
10assessment.
11 Sec. 100. Section 185C.29, subsection 1, Code 2017, is
12amended to read as follows:
131. After the direct and indirect costs incurred by the
14secretary and the costs of elections, referendums, necessary
15board expenses, and administrative costs have been paid, at
16least seventy-five percent of the remaining moneys from a
17state assessment for direct use shall be deposited in the corn
18promotion fund and shall be used to carry out the purposes of
19the board as provided in section 185C.11.
20 Sec. 101. Section 185C.33, Code 2017, is amended to read as
21follows:
22185C.33 Report.
23The board shall each year prepare and submit a report
24summarizing the activities of the board under this chapter to
25the auditor of state and the secretary of agriculture. The
26report shall show all income, expenses, and other relevant
27information concerning fees the state assessment for direct use
28 collected and expended under the provisions of this chapter.
29DIVISION IX
30CLEAN WATER FUND
31 Sec. 102. NEW SECTION. 7D.10B Payment to the clean water
32fund.
33If moneys are not sufficient to reimburse the department of
34agriculture and land stewardship or a commodity organization
35described in section 466B.51 for reasonable expenses incurred
-91-1in conducting a referendum to establish, continue, or terminate
2a state assessment for clean water, the executive council may
3authorize as an expense paid from the appropriations addressed
4in section 7D.29 the payment of an amount to the clean water
5fund created in section 466B.51. However, not more than a
6total of one hundred thousand dollars shall be paid pursuant
7to this section to the fund at any one time to pay for expenses
8incurred in conducting a referendum.
9 Sec. 103. Section 423.2, subsections 1, 2, 3, 4, 5, 7, 8, 9,
10and 14, Code 2017, are amended to read as follows:
111. a. There is imposed a tax of six percent upon the sales
12price of all sales of tangible personal property, consisting
13of goods, wares, or merchandise, sold at retail in the state
14to consumers or users except as otherwise provided in this
15subchapter. This paragraph is repealed on the date that
16paragraph “b” takes effect.
17b. There is imposed a tax of six and one-eighth percent upon
18the sales price of all sales of tangible personal property,
19consisting of goods, wares, or merchandise, sold at retail in
20the state to consumers or users except as otherwise provided
21in this subchapter. This paragraph takes effect on July 1 of
22the fiscal year in which the department receives the first
23certification that commodity organizations have collected
24twenty million dollars from clean water assessments during the
25preceding fiscal year as provided in section 466B.55. This
26paragraph is repealed on the date that paragraph “c” takes
27effect.
28c. There is imposed a tax of six and two-eighths percent
29upon the sales price of all sales of tangible personal
30property, consisting of goods, wares, or merchandise, sold at
31retail in the state to consumers or users except as otherwise
32provided in this subchapter. This paragraph takes effect on
33July 1 of the fiscal year in which the department receives
34the second certification that commodity organizations have
35collected twenty million dollars from clean water assessments
-92-1during the preceding fiscal year as provided in section
2466B.55. This paragraph is repealed on the date that paragraph
3“d” takes effect.
4d. There is imposed a tax of six and three-eighths percent
5upon the sales price of all sales of tangible personal
6property, consisting of goods, wares, or merchandise, sold at
7retail in the state to consumers or users except as otherwise
8provided in this subchapter. This paragraph takes effect on
9July 1 of the fiscal year in which the department receives the
10third certification that commodity organizations have collected
11twenty million dollars from clean water assessments during the
12preceding fiscal year as provided in section 466B.55.
13a. e. For the purposes of this subchapter, sales of
14the following services are treated as if they were sales of
15tangible personal property:
16(1) Sales of engraving, photography, retouching, printing,
17and binding services.
18(2) Sales of vulcanizing, recapping, and retreading
19services.
20(3) Sales of prepaid calling services and prepaid wireless
21calling services.
22(4) Sales of optional service or warranty contracts, except
23residential service contracts regulated under chapter 523C,
24which provide for the furnishing of labor and materials and
25require the furnishing of any taxable service enumerated under
26this section. The sales price is subject to tax even if some of
27the services furnished are not enumerated under this section.
28Additional sales, services, or use taxes shall not be levied
29on services, parts, or labor provided under optional service
30or warranty contracts which are subject to tax under this
31subsection.
32(5) Sales of optional service or warranty contracts for
33computer software maintenance or support services.
34(a) If a service or warranty contract does not specify a fee
35amount for nontaxable services or taxable personal property,
-93-1the tax imposed pursuant to this section shall be imposed upon
2an amount equal to one-half of the sales price of the contract.
3(b) If a service or warranty contract provides only for
4technical support services, no tax shall be imposed pursuant to
5this section.
6(6) Subparagraphs (4) and (5) shall also apply to the use
7tax imposed under section 423.5.
8b. f. Sales of building materials, supplies, and equipment
9to owners, contractors, subcontractors, or builders for the
10erection of buildings or the alteration, repair, or improvement
11of real property are retail sales of tangible personal property
12in whatever quantity sold. Where the owner, contractor,
13subcontractor, or builder is also a retailer holding a retail
14sales tax permit and transacting retail sales of building
15materials, supplies, and equipment, the person shall purchase
16such items of tangible personal property without liability for
17the tax if such property will be subject to the tax at the
18time of resale or at the time it is withdrawn from inventory
19for construction purposes. The sales tax shall be due in the
20reporting period when the materials, supplies, and equipment
21are withdrawn from inventory for construction purposes or
22when sold at retail. The tax shall not be due when materials
23are withdrawn from inventory for use in construction outside
24of Iowa and the tax shall not apply to tangible personal
25property purchased and consumed by the manufacturer as building
26materials in the performance by the manufacturer or its
27subcontractor of construction outside of Iowa. The sale of
28carpeting is not a sale of building materials. The sale of
29carpeting to owners, contractors, subcontractors, or builders
30shall be treated as the sale of ordinary tangible personal
31property and subject to the tax imposed under this subsection
32and the use tax.
33c. g. The use within this state of tangible personal
34property by the manufacturer thereof, as building materials,
35supplies, or equipment, in the performance of construction
-94-1contracts in Iowa, shall, for the purpose of this subchapter,
2be construed as a sale at retail of tangible personal property
3by the manufacturer who shall be deemed to be the consumer of
4such tangible personal property. The tax shall be computed
5upon the cost to the manufacturer of the fabrication or
6production of the tangible personal property.
72. a. A tax of six percent is imposed upon the sales price
8of the sale or furnishing of gas, electricity, water, heat,
9pay television service, and communication service, including
10the sales price from such sales by any municipal corporation
11or joint water utility furnishing gas, electricity, water,
12heat, pay television service, and communication service to
13the public in its proprietary capacity, except as otherwise
14provided in this subchapter, when sold at retail in the state
15to consumers or users. This paragraph is repealed on the date
16that paragraph “b” takes effect.
17b. A tax of six and one-eighth percent is imposed upon the
18sales price of the sale or furnishing of gas, electricity,
19water, heat, pay television service, and communication service,
20including the sales price from such sales by any municipal
21corporation or joint water utility furnishing gas, electricity,
22water, heat, pay television service, and communication service
23to the public in its proprietary capacity, except as otherwise
24provided in this subchapter, when sold at retail in the state
25to consumers or users. This paragraph takes effect on July 1
26of the fiscal year in which the department receives the first
27certification that commodity organizations have collected
28twenty million dollars from clean water assessments during the
29preceding fiscal year as provided in section 466B.55. This
30paragraph is repealed on the date that paragraph “c” takes
31effect.
32c. A tax of six and two-eighths percent is imposed upon
33the sales price of the sale or furnishing of gas, electricity,
34water, heat, pay television service, and communication service,
35including the sales price from such sales by any municipal
-95-1corporation or joint water utility furnishing gas, electricity,
2water, heat, pay television service, and communication service
3to the public in its proprietary capacity, except as otherwise
4provided in this subchapter, when sold at retail in the state
5to consumers or users. This paragraph takes effect on July 1
6of the fiscal year in which the department receives the second
7certification that commodity organizations have collected
8twenty million dollars from clean water assessments during the
9preceding fiscal year as provided in section 466B.55. This
10paragraph is repealed on the date that paragraph “d” takes
11effect.
12d. A tax of six and three-eighths percent is imposed upon
13the sales price of the sale or furnishing of gas, electricity,
14water, heat, pay television service, and communication service,
15including the sales price from such sales by any municipal
16corporation or joint water utility furnishing gas, electricity,
17water, heat, pay television service, and communication service
18to the public in its proprietary capacity, except as otherwise
19provided in this subchapter, when sold at retail in the state
20to consumers or users. This paragraph takes effect on July 1
21of the fiscal year in which the department receives the third
22certification that commodity organizations have collected
23twenty million dollars from clean water assessments during the
24preceding fiscal year as provided in section 466B.55.
253. a. A tax of six percent is imposed upon the sales price
26of all sales of tickets or admissions to places of amusement,
27fairs, and athletic events except those of elementary and
28secondary educational institutions. A tax of six percent is
29imposed on the sales price of an entry fee or like charge
30imposed solely for the privilege of participating in an
31activity at a place of amusement, fair, or athletic event
32unless the sales price of tickets or admissions charges for
33observing the same activity are taxable under this subchapter.
34A tax of six percent is imposed upon that part of private
35club membership fees or charges paid for the privilege of
-96-1participating in any athletic sports provided club members.
2This paragraph is repealed on the date that paragraph “b” takes
3effect.
4b. A tax of six and one-eighth percent is imposed upon the
5sales price of all sales of tickets or admissions to places
6of amusement, fairs, and athletic events except those of
7elementary and secondary educational institutions. A tax of
8six and one-eighth percent is imposed on the sales price of an
9entry fee or like charge imposed solely for the privilege of
10participating in an activity at a place of amusement, fair, or
11athletic event unless the sales price of tickets or admissions
12charges for observing the same activity are taxable under this
13subchapter. A tax of six and one-eighth percent is imposed
14upon that part of private club membership fees or charges paid
15for the privilege of participating in any athletic sports
16provided club members. This paragraph takes effect on July 1
17of the fiscal year in which the department receives the first
18certification that commodity organizations have collected
19twenty million dollars from clean water assessments during the
20preceding fiscal year as provided in section 466B.55. This
21paragraph is repealed on the date that paragraph “c” takes
22effect.
23c. A tax of six and two-eighths percent is imposed upon the
24sales price of all sales of tickets or admissions to places
25of amusement, fairs, and athletic events except those of
26elementary and secondary educational institutions. A tax of
27six and two-eighths percent is imposed on the sales price of an
28entry fee or like charge imposed solely for the privilege of
29participating in an activity at a place of amusement, fair, or
30athletic event unless the sales price of tickets or admissions
31charges for observing the same activity are taxable under this
32subchapter. A tax of six and two-eighths percent is imposed
33upon that part of private club membership fees or charges paid
34for the privilege of participating in any athletic sports
35provided club members. This paragraph takes effect on July 1
-97-1of the fiscal year in which the department receives the second
2certification that commodity organizations have collected
3twenty million dollars from clean water assessments during the
4preceding fiscal year as provided in section 466B.55. This
5paragraph is repealed on the date that paragraph “d” takes
6effect.
7d. A tax of six and three-eighths percent is imposed upon
8the sales price of all sales of tickets or admissions to places
9of amusement, fairs, and athletic events except those of
10elementary and secondary educational institutions. A tax of
11six and three-eighths percent is imposed on the sales price of
12an entry fee or like charge imposed solely for the privilege
13of participating in an activity at a place of amusement,
14fair, or athletic event unless the sales price of tickets or
15admissions charges for observing the same activity are taxable
16under this subchapter. A tax of six and three-eighths percent
17is imposed upon that part of private club membership fees or
18charges paid for the privilege of participating in any athletic
19sports provided club members. This paragraph takes effect on
20July 1 of the fiscal year in which the department receives the
21third certification that commodity organizations have collected
22twenty million dollars from clean water assessments during the
23preceding fiscal year as provided in section 466B.55.
244. a. A tax of six percent is imposed upon the sales price
25derived from the operation of all forms of amusement devices
26and games of skill, games of chance, raffles, and bingo games
27as defined in chapter 99B, and card game tournaments conducted
28under section 99B.27, that are operated or conducted within the
29state, the tax to be collected from the operator in the same
30manner as for the collection of taxes upon the sales price of
31tickets or admission as provided in this section. Nothing in
32this subsection shall legalize any games of skill or chance or
33slot-operated devices which are now prohibited by law. This
34paragraph is repealed on the date that paragraph “b” takes
35effect.
-98- 1b. A tax of six and one-eighth percent is imposed upon
2the sales price derived from the operation of all forms of
3amusement devices and games of skill, games of chance, raffles,
4and bingo games as defined in chapter 99B, and card game
5tournaments conducted under section 99B.27, that are operated
6or conducted within the state, the tax to be collected from
7the operator in the same manner as for the collection of taxes
8upon the sales price of tickets or admission as provided in
9this section. Nothing in this subsection shall legalize any
10games of skill or chance or slot-operated devices which are
11now prohibited by law. This paragraph takes effect on July 1
12of the fiscal year in which the department receives the first
13certification that commodity organizations have collected
14twenty million dollars from clean water assessments during the
15preceding fiscal year as provided in section 466B.55. This
16paragraph is repealed on the date that paragraph “c” takes
17effect.
18c. A tax of six and two-eighths percent is imposed upon
19the sales price derived from the operation of all forms of
20amusement devices and games of skill, games of chance, raffles,
21and bingo games as defined in chapter 99B, and card game
22tournaments conducted under section 99B.27, that are operated
23or conducted within the state, the tax to be collected from
24the operator in the same manner as for the collection of taxes
25upon the sales price of tickets or admission as provided in
26this section. Nothing in this subsection shall legalize any
27games of skill or chance or slot-operated devices which are
28now prohibited by law. This paragraph takes effect on July 1
29of the fiscal year in which the department receives the second
30certification that commodity organizations have collected
31twenty million dollars from clean water assessments during the
32preceding fiscal year as provided in section 466B.55. This
33paragraph is repealed on the date that paragraph “d” takes
34effect.
35d. A tax of six and three-eighths percent is imposed upon
-99-1the sales price derived from the operation of all forms of
2amusement devices and games of skill, games of chance, raffles,
3and bingo games as defined in chapter 99B, and card game
4tournaments conducted under section 99B.27, that are operated
5or conducted within the state, the tax to be collected from
6the operator in the same manner as for the collection of taxes
7upon the sales price of tickets or admission as provided in
8this section. Nothing in this subsection shall legalize any
9games of skill or chance or slot-operated devices which are
10now prohibited by law. This paragraph takes effect on July 1
11of the fiscal year in which the department receives the third
12certification that commodity organizations have collected
13twenty million dollars from clean water assessments during the
14preceding fiscal year as provided in section 466B.55.
15b. e. The tax imposed under this subsection covers the
16total amount from the operation of games of skill, games
17of chance, raffles, and bingo games as defined in chapter
1899B, card game tournaments conducted under section 99B.27,
19and musical devices, weighing machines, shooting galleries,
20billiard and pool tables, bowling alleys, pinball machines,
21slot-operated devices selling merchandise not subject to the
22general sales taxes and on the total amount from devices or
23systems where prizes are in any manner awarded to patrons and
24upon the receipts from fees charged for participation in any
25game or other form of amusement, and generally upon the sales
26price from any source of amusement operated for profit, not
27specified in this section, and upon the sales price from which
28tax is not collected for tickets or admission, but tax shall
29not be imposed upon any activity exempt from sales tax under
30section 423.3, subsection 78. Every person receiving any sales
31price from the sources described in this section is subject to
32all provisions of this subchapter relating to retail sales tax
33and other provisions of this chapter as applicable.
345. a. There is imposed a tax of six percent upon the sales
35price from the furnishing of services as defined in section
-100-1423.1. This paragraph is repealed on the date that paragraph
2“b” takes effect.
3b. There is imposed a tax of six and one-eighth percent
4upon the sales price from the furnishing of services as defined
5in section 423.1. This paragraph takes effect on July 1 of
6the fiscal year in which the department receives the first
7certification that commodity organizations have collected
8twenty million dollars from clean water assessments during the
9preceding fiscal year as provided in section 466B.55. This
10paragraph is repealed on the date that paragraph “c” takes
11effect.
12c. There is imposed a tax of six and two-eighths percent
13upon the sales price from the furnishing of services as defined
14in section 423.1. This paragraph takes effect on July 1 of
15the fiscal year in which the department receives the second
16certification that commodity organizations have collected
17twenty million dollars from clean water assessments during the
18preceding fiscal year as provided in section 466B.55. This
19paragraph is repealed on the date that paragraph “d” takes
20effect.
21d. There is imposed a tax of six and three-eighths percent
22upon the sales price from the furnishing of services as defined
23in section 423.1. This paragraph takes effect on July 1 of
24the fiscal year in which the department receives the third
25certification that commodity organizations have collected
26twenty million dollars from clean water assessments during the
27preceding fiscal year as provided in section 466B.55.
287. a. A tax of six percent is imposed upon the sales
29price from the sales, furnishing, or service of solid waste
30collection and disposal service. This paragraph is repealed on
31the date that paragraph “b” takes effect.
32b. A tax of six and one-eighth percent is imposed upon the
33sales price from the sales, furnishing, or service of solid
34waste collection and disposal service. This paragraph takes
35effect on July 1 of the fiscal year in which the department
-101-1receives the first certification that commodity organizations
2have collected twenty million dollars from clean water
3assessments during the preceding fiscal year as provided in
4section 466B.55. This paragraph is repealed on the date that
5paragraph “c” takes effect.
6c. A tax of six and two-eighths percent is imposed upon the
7sales price from the sales, furnishing, or service of solid
8waste collection and disposal service. This paragraph takes
9effect on July 1 of the fiscal year in which the department
10receives the second certification that commodity organizations
11have collected twenty million dollars from clean water
12assessments during the preceding fiscal year as provided in
13section 466B.55. This paragraph is repealed on the date that
14paragraph “d” takes effect.
15d. A tax of six and three-eighths percent is imposed upon
16the sales price from the sales, furnishing, or service of solid
17waste collection and disposal service. This paragraph takes
18effect on July 1 of the fiscal year in which the department
19receives the third certification that commodity organizations
20have collected twenty million dollars from clean water
21assessments during the preceding fiscal year as provided in
22section 466B.55.
23e. (1) For purposes of this subsection, “solid waste” means
24garbage, refuse, sludge from a water supply treatment plant
25or air contaminant treatment facility, and other discarded
26waste materials and sludges, in solid, semisolid, liquid,
27or contained gaseous form, resulting from nonresidential
28commercial operations, but does not include auto hulks; street
29sweepings; ash; construction debris; mining waste; trees;
30tires; lead acid batteries; used oil; hazardous waste; animal
31waste used as fertilizer; earthen fill, boulders, or rock;
32foundry sand used for daily cover at a sanitary landfill;
33sewage sludge; solid or dissolved material in domestic
34sewage or other common pollutants in water resources, such as
35silt, dissolved or suspended solids in industrial wastewater
-102-1effluents or discharges which are point sources subject to
2permits under section 402 of the federal Water Pollution
3Control Act, or dissolved materials in irrigation return flows;
4or source, special nuclear, or by-product material defined by
5the federal Atomic Energy Act of 1954.
6(2) A recycling facility that separates or processes
7recyclable materials and that reduces the volume of the waste
8by at least eighty-five percent is exempt from the tax imposed
9by this subsection if the waste exempted is collected and
10disposed of separately from other solid waste.
11b. f. A person who transports solid waste generated by that
12person or another person without compensation shall pay the
13tax imposed by this subsection at the collection or disposal
14facility based on the disposal charge or tipping fee. However,
15the costs of a service or portion of a service to collect and
16manage recyclable materials separated from solid waste by
17the waste generator are exempt from the tax imposed by this
18subsection.
198. a. A tax of six percent is imposed on the sales price
20from sales of bundled transactions. This paragraph is repealed
21on the date that paragraph “b” takes effect.
22b. A tax of six and one-eighth percent is imposed on
23the sales price from sales of bundled transactions. This
24paragraph takes effect on July 1 of the fiscal year in which
25the department receives the first certification that commodity
26organizations have collected twenty million dollars from clean
27water assessments during the preceding fiscal year as provided
28in section 466B.55. This paragraph is repealed on the date
29that paragraph “c” takes effect.
30c. A tax of six and two-eighths percent is imposed on
31the sales price from sales of bundled transactions. This
32paragraph takes effect on July 1 of the fiscal year in which
33the department receives the second certification that commodity
34organizations have collected twenty million dollars from clean
35water assessments during the preceding fiscal year as provided
-103-1in section 466B.55. This paragraph is repealed on the date
2that paragraph “d” takes effect.
3d. A tax of six and three-eighths percent is imposed on
4the sales price from sales of bundled transactions. This
5paragraph takes effect on July 1 of the fiscal year in which
6the department receives the third certification that commodity
7organizations have collected twenty million dollars from clean
8water assessments during the preceding fiscal year as provided
9in section 466B.55.
10e. For the purposes of this subsection, a “bundled
11transaction” is the retail sale of two or more distinct and
12identifiable products, except real property and services to
13real property, which are sold for one nonitemized price. A
14“bundled transaction” does not include the sale of any products
15in which the sales price varies, or is negotiable, based on
16the selection by the purchaser of the products included in the
17transaction.
18b. f. “Distinct and identifiable products” does not include
19any of the following:
20(1) Packaging or other materials that accompany the retail
21sale of the products and are incidental or immaterial to the
22retail sale of the products.
23(2) A product provided free of charge with the required
24purchase of another product. A product is “provided free
25of charge” if the sales price of the product purchased does
26not vary depending on the inclusion of the product which is
27provided free of charge.
28(3) Items included in the definition of “sales price”
29pursuant to section 423.1.
30c. g. “One nonitemized price” does not include a price that
31is separately identified by product on binding sales or other
32supporting sales-related documentation made available to the
33customer in paper or electronic form.
349. a. A tax of six percent is imposed upon the sales price
35from any mobile telecommunications service, including all
-104-1paging services, that this state is allowed to tax pursuant
2to the provisions of the federal Mobile Telecommunications
3Sourcing Act, Pub.L. No.106-252, 4 U.S.C. §116 et seq. This
4paragraph is repealed on the date that paragraph “b” takes
5effect.
6b. A tax of six and one-eighth percent is imposed upon
7the sales price from any mobile telecommunications service,
8including all paging services, that this state is allowed
9to tax pursuant to the provisions of the federal Mobile
10Telecommunications Sourcing Act, Pub.L. No.106-252, 4
11U.S.C. §116 et seq. This paragraph takes effect on July 1 of
12the fiscal year in which the department receives the first
13certification that commodity organizations have collected
14twenty million dollars from clean water assessments during the
15preceding fiscal year as provided in section 466B.55. This
16paragraph is repealed on the date that paragraph “c” takes
17effect.
18c. A tax of six and two-eighths percent is imposed upon
19the sales price from any mobile telecommunications service,
20including all paging services, that this state is allowed
21to tax pursuant to the provisions of the federal Mobile
22Telecommunications Sourcing Act, Pub.L. No.106-252, 4
23U.S.C. §116 et seq. This paragraph takes effect on July 1 of
24the fiscal year in which the department receives the second
25certification that commodity organizations have collected
26twenty million dollars from clean water assessments during the
27preceding fiscal year as provided in section 466B.55. This
28paragraph is repealed on the date that paragraph “d” takes
29effect.
30d. A tax of six and three-eighths percent is imposed
31upon the sales price from any mobile telecommunications
32service, including all paging services, that this state is
33allowed to tax pursuant to the provisions of the federal
34Mobile Telecommunications Sourcing Act, Pub.L. No.106-252,
354 U.S.C. §116 et seq. This paragraph takes effect on July 1
-105-1of the fiscal year in which the department receives the third
2certification that commodity organizations have collected
3twenty million dollars from clean water assessments during the
4preceding fiscal year as provided in section 466B.55.
5e. For purposes of this subsection, taxes on mobile
6telecommunications service, as defined under the federal Mobile
7Telecommunications Sourcing Act that are deemed to be provided
8by the customer’s home service provider, shall be paid to
9the taxing jurisdiction whose territorial limits encompass
10the customer’s place of primary use, regardless of where the
11mobile telecommunications service originates, terminates,
12or passes through and shall in all other respects be taxed
13in conformity with the federal Mobile Telecommunications
14Sourcing Act. All other provisions of the federal Mobile
15Telecommunications Sourcing Act are adopted by the state of
16Iowa and incorporated into this subsection by reference. With
17respect to mobile telecommunications service under the federal
18Mobile Telecommunications Sourcing Act, the director shall, if
19requested, enter into agreements consistent with the provisions
20of the federal Act.
2114. a. The sales tax rate of six percent is reduced to five
22percent on January 1, 2030. This paragraph is repealed on the
23date that paragraph “b” takes effect.
24b. Notwithstanding paragraph “a”, if the sales tax rate is
25six and one-eighth percent, the sales tax rate is reduced to
26five and one-eighth percent on January 1, 2030. This paragraph
27is repealed on the date that paragraph “c” takes effect.
28c. Notwithstanding paragraph “a”, if the sales tax rate
29is six and two-eighths percent, the sales tax rate is reduced
30to five and two-eighths percent on January 1, 2030. This
31paragraph is repealed on the date that paragraph “d” takes
32effect.
33d. Notwithstanding paragraph “a”, if the sales tax rate is
34six and three-eighths percent, the sales tax rate is reduced to
35five and three-eighths percent on January 1, 2030.
-106-1 Sec. 104. Section 423.5, Code 2017, is amended to read as
2follows:
3423.5 Imposition of tax.
41. Except as provided in paragraph “c”, an excise tax at the
5rate of six percent of the purchase price or installed purchase
6price is imposed on the following:
7a. (1) The Except as provided in subsection 4, an excise
8tax of six percent of the purchase price is imposed on the
9 use in this state of tangible personal property as defined in
10section 423.1, including aircraft subject to registration under
11section 328.20, purchased for use in this state.
12(2) This paragraph “a” is repealed on the date that
13paragraph “b” takes effect.
14b. (1) Except as provided in subsection 4, an excise tax of
15six and one-eighth percent of the purchase price is imposed on
16the use in this state of tangible personal property as defined
17in section 423.1, including aircraft subject to registration
18under section 328.20, purchased for use in this state.
19(2) This paragraph “b” takes effect on July 1 of the fiscal
20year in which the department receives the first certification
21that commodity organizations have collected twenty million
22dollars from clean water assessments during the preceding
23fiscal year as provided in section 466B.55.
24(3) This paragraph “b” is repealed on the date that
25paragraph “c” takes effect.
26c. (1) Except as provided in subsection 4, an excise tax of
27six and two-eighths percent of the purchase price is imposed on
28the use in this state of tangible personal property as defined
29in section 423.1, including aircraft subject to registration
30under section 328.20, purchased for use in this state.
31(2) This paragraph “c” takes effect on July 1 of the fiscal
32year in which the department receives the second certification
33that commodity organizations have collected twenty million
34dollars from clean water assessments during the preceding
35fiscal year as provided in section 466B.55.
-107- 1(3) This paragraph “c” is repealed on the date that
2paragraph “d” takes effect.
3d. (1) Except as provided in subsection 4, an excise tax
4of six and three-eighths percent of the purchase price is
5imposed on the use in this state of tangible personal property
6as defined in section 423.1, including aircraft subject to
7registration under section 328.20, purchased for use in this
8state.
9(2) This paragraph takes effect on July 1 of the fiscal year
10in which the department receives the third certification that
11commodity organizations have collected twenty million dollars
12from clean water assessments during the preceding fiscal year
13as provided in section 466B.55.
142. For the purposes of this subchapter, the furnishing
15or use of the following services is also treated as the use
16of tangible personal property: optional service or warranty
17contracts, except residential service contracts regulated under
18chapter 523C, vulcanizing, recapping, or retreading services,
19engraving, photography, retouching, printing, or binding
20services, and communication service when furnished or delivered
21to consumers or users within this state.
22b. 3. a. (1) The Except as provided in subsection 4, an
23excise tax of six percent of the purchase price is imposed on
24the use of manufactured housing in this state, on the purchase
25price if the manufactured housing is sold in the form of
26tangible personal property or on the installed purchase price
27if the manufactured housing is sold in the form of realty.
28(2) This paragraph “a” is repealed on the date that
29paragraph “b” takes effect.
30b. (1) Except as provided in subsection 4, an excise tax of
31six and one-eighth percent of the purchase price is imposed on
32the use of manufactured housing in this state, on the purchase
33price if the manufactured housing is sold in the form of
34tangible personal property or on the installed purchase price
35if the manufactured housing is sold in the form of realty.
-108- 1(2) This paragraph “b” takes effect on July 1 of the fiscal
2year in which the department receives the first certification
3that commodity organizations have collected twenty million
4dollars from clean water assessments during the preceding
5fiscal year as provided in section 466B.55.
6(3) This paragraph “b” is repealed on the date that
7paragraph “c” takes effect.
8c. (1) Except as provided in subsection 4, an excise tax of
9six and two-eighths percent of the purchase price or installed
10purchase price is imposed on the use of manufactured housing in
11this state, on the purchase price if the manufactured housing
12is sold in the form of tangible personal property or on the
13installed purchase price if the manufactured housing is sold
14in the form of realty.
15(2) This paragraph “c” takes effect on July 1 of the fiscal
16year in which the department receives the second certification
17that commodity organizations have collected twenty million
18dollars from clean water assessments during the preceding
19fiscal year as provided in section 466B.55.
20(3) This paragraph “c” is repealed on the date that
21paragraph “d” takes effect.
22d. (1) Except as provided in subsection 4, an excise tax
23of six and three-eighths percent of the purchase price or
24installed purchase price is imposed on the use of manufactured
25housing in this state, on the purchase price if the
26manufactured housing is sold in the form of tangible personal
27property or on the installed purchase price if the manufactured
28housing is sold in the form of realty.
29(2) This paragraph “d” takes effect on July 1 of the fiscal
30year in which the department receives the third certification
31that commodity organizations have collected twenty million
32dollars from clean water assessments during the preceding
33fiscal year as provided in section 466B.55.
34c. 4. An excise tax at the rate of five percent is imposed
35on the use of vehicles subject only to the issuance of a
-109-1certificate of title and the use of manufactured housing, and
2on the use of leased vehicles, if the lease transaction does
3not require titling or registration of the vehicle, on the
4amount subject to tax as calculated pursuant to section 423.26,
5subsection 2.
6d. 5. Purchases of tangible personal property made from
7the government of the United States or any of its agencies by
8ultimate consumers shall be subject to the tax imposed by this
9section. Services purchased from the same source or sources
10shall be subject to the service tax imposed by this subchapter
11and apply to the user of the services.
12e. 6. a. (1) The An excise tax of six percent of the
13purchase price is imposed on the use in this state of services
14enumerated in section 423.2.
15(2) This paragraph “a” is repealed on the date that
16paragraph “b” takes effect.
17b. (1) An excise tax of six and one-eighth percent of the
18purchase price is imposed on the use in this state of services
19enumerated in section 423.2.
20(2) This paragraph “b” takes effect on July 1 of the fiscal
21year in which the department receives the first certification
22that commodity organizations have collected twenty million
23dollars from clean water assessments during the preceding
24fiscal year as provided in section 466B.55.
25(3) This paragraph “b” is repealed on the date that
26paragraph “c” takes effect.
27c. (1) An excise tax of six and two-eighths percent of the
28purchase price is imposed on the use in this state of services
29enumerated in section 423.2.
30(2) This paragraph “c” takes effect on July 1 of the fiscal
31year in which the department receives the second certification
32that commodity organizations have collected twenty million
33dollars from clean water assessments during the preceding
34fiscal year as provided in section 466B.55.
35(3) This paragraph “c” is repealed on the date that
-110-1paragraph “d” takes effect.
2d. (1) An excise tax of six and three-eighths percent
3of the purchase price is imposed on the use in this state of
4services enumerated in section 423.2.
5(2) This paragraph “d” takes effect on July 1 of the fiscal
6year in which the department receives the third certification
7that commodity organizations have collected twenty million
8dollars from clean water assessments during the preceding
9fiscal year as provided in section 466B.55.
10e. This tax is applicable where the service is first used
11in this state.
122. 7. The excise tax is imposed upon every person using
13the property within this state until the tax has been paid
14directly to the county treasurer, the state department of
15transportation, a retailer, or the department. This tax is
16imposed on every person using the services or the product of
17the services in this state until the user has paid the tax
18either to an Iowa use tax permit holder or to the department.
193. 8. For the purpose of the proper administration of the
20use tax and to prevent its evasion, evidence that tangible
21personal property was sold by any person for delivery in this
22state shall be prima facie evidence that such tangible personal
23property was sold for use in this state.
244. 9. Any person or that person’s affiliate, which is a
25retailer in this state or a retailer maintaining a place of
26business in this state under this chapter, that enters into a
27contract with an agency of this state must register, collect,
28and remit Iowa use tax under this chapter on all sales of
29tangible personal property and enumerated services. Every
30bid submitted and each contract executed by a state agency
31shall contain a certification by the bidder or contractor
32stating that the bidder or contractor is registered with the
33department and will collect and remit Iowa use tax due under
34this chapter. In the certification, the bidder or contractor
35shall also acknowledge that the state agency may declare the
-111-1contract or bid void if the certification is false. Fraudulent
2certification, by act or omission, may result in the state
3agency or its representative filing for damages for breach of
4contract.
55. 10. a. The use tax rate of If the use tax rate is six
6percent is reduced to five percent on January 1, 2030, the rate
7shall be reduced to five percent on that date.
8b. If the use tax rate is six and one-eighth percent
9on January 1, 2030, the rate shall be reduced to five and
10one-eighth percent on that date.
11c. If the use tax rate is six and two-eighths percent
12on January 1, 2030, the rate shall be reduced to five and
13two-eighths percent on that date.
14d. If the use tax rate is six and three-eighths percent
15on January 1, 2030, the rate shall be reduced to five and
16three-eighths percent on that date.
17 Sec. 105. Section 423.43, subsection 1, paragraph b, Code
182017, is amended to read as follows:
19b. Subsequent to the deposit into the general fund of the
20state and after the transfer of such revenues collected under
21chapter 423B, the department shall transfer one-sixth all of
22the following:
23(1) (a) If the department receives the first certification
24described in section 423.5, revenues equaling one-eighth of one
25percent of the tax imposed by that section shall be transferred
26to the natural resources and outdoor recreation trust fund
27created in section 461.31.
28(b) If the department receives the second certification
29described in section 423.5, revenues equaling two-eighths
30of one percent of the tax imposed by that section shall be
31transferred to the natural resources and outdoor recreation
32trust fund created in section 461.31.
33(c) If the department receives the third certification
34described in section 423.5, revenues equaling three-eighths
35of one percent of the tax imposed by that section shall be
-112-1transferred to the natural resources and outdoor recreation
2trust fund created in section 461.31.
3(2) One-sixthof such remaining revenues to the secure an
4advanced vision for education fund created in section 423F.2.
5This paragraph is repealed December 31, 2029.
6 Sec. 106. NEW SECTION. 461.31A Allocation of trust fund
7moneys to the clean water fund.
8On or after July 1 of each fiscal year and prior to any
9allocations to a trust fund account, an amount shall be
10transferred to the general account of the clean water fund
11created in section 466B.51. The transferred amount shall equal
12the amount credited to the assessment account of the clean
13water fund during prior fiscal years.
14 Sec. 107. Section 461.32, subsection 1, Code 2017, is
15amended to read as follows:
161. A natural resources account is created in the trust
17fund. Twenty-three After the transfer has been made from the
18trust fund to the clean water fund pursuant to section 461.31A,
19twenty-three percent of the remaining moneys credited to the
20trust fund shall be allocated to the trust fund’s natural
21resources account.
22 Sec. 108. Section 461.33, subsection 1, Code 2017, is
23amended to read as follows:
241. A soil conservation and water protection account is
25created in the trust fund. Twenty After the transfer has been
26made from the trust fund to the clean water fund pursuant
27to section 461.31A, twenty percent of the moneys credited to
28the trust fund shall be allocated to the trust fund’s soil
29conservation and water protection account.
30 Sec. 109. Section 461.34, subsection 1, Code 2017, is
31amended to read as follows:
321. A watershed protection account is created in the trust
33fund. Fourteen After the transfer has been made from the trust
34fund to the clean water fund pursuant to section 461.31A,
35fourteen percent of the moneys credited to the trust fund shall
-113-1be allocated to the trust fund’s watershed protection account.
2 Sec. 110. Section 461.35, Code 2017, is amended to read as
3follows:
4461.35 Iowa resources enhancement and protection fund —
5allocation.
6Thirteen After the transfer has been made from the trust fund
7to the clean water fund pursuant to section 461.31A, thirteen
8 percent of the moneys credited to the trust fund shall be
9allocated to the Iowa resources enhancement and protection fund
10created in section 455A.18 for further allocation as provided
11in section 455A.19.
12 Sec. 111. Section 461.36, subsection 1, Code 2017, is
13amended to read as follows:
141. A local conservation partnership account is created in
15the trust fund. Thirteen After the transfer from the trust
16fund has been made to the clean water fund pursuant to section
17461.31A, thirteen percent of the moneys credited to the trust
18fund shall be allocated to the trust fund’s local conservation
19partnership account.
20 Sec. 112. Section 461.37, subsection 1, Code 2017, is
21amended to read as follows:
221. A trails account is created in the trust fund. Ten
23 After the transfer from the trust fund has been made to the
24clean water fund pursuant to section 461.31A, ten percent of
25the moneys credited to the trust fund shall be allocated to the
26trust fund’s trails account.
27 Sec. 113. Section 461.38, subsection 1, Code 2017, is
28amended to read as follows:
291. A lake restoration account is created in the trust fund.
30Seven After the transfer from the trust fund has been made to
31the clean water fund pursuant to section 461.31A, ten percent
32of the moneys credited to the trust fund shall be allocated to
33the account.
34 Sec. 114. Section 466A.3, subsection 1, unnumbered
35paragraph 1, Code 2017, is amended to read as follows:
-114- 1A watershed improvement review board is established. The
2board shall advise the clean water commission created in
3section 466B.52.
4 Sec. 115. Section 466A.3, subsection 4, unnumbered
5paragraph 1, Code 2017, is amended to read as follows:
6The watershed improvement review board shall carry out
7the purposes of this chapter as provided in section 466A.2,
8including by determining how moneys are to be expended from
9the watershed improvement fund and authorizing the expenditure
10of moneys from the fund. In carrying out those purposes, and
11acting upon direction of the clean water commission, the board
12shall do all of the following:
13 Sec. 116. Section 466A.5, Code 2017, is amended to read as
14follows:
15466A.5 Administration.
161. The division of soil conservation and water quality
17created within the department of agriculture and land
18stewardship pursuant to section 159.5 shall provide
19administrative support to the board. The division shall
20administer this chapter under the oversight of the clean water
21commission created in section 466B.52.
222. Not more than one percent of the total moneys deposited
23in the general account of the watershed improvement fund on
24July 1 of a fiscal year or fifty thousand dollars, whichever is
25less, is appropriated each fiscal year to the division for the
26purposes of assisting the watershed improvement review board
27in administering this chapter.
28 Sec. 117. Section 466B.2, Code 2017, is amended by adding
29the following new subsections:
30 NEW SUBSECTION. 01. “Commission” means the clean water
31commission created in section 466B.52.
32 NEW SUBSECTION. 2A. “Iowa nutrient reduction strategy”
33means the latest version of the document entitled “Iowa
34Nutrient Reduction Strategy” initially presented in 2012 by the
35department of agriculture and land stewardship, the department
-115-1of natural resources, and Iowa state university of science and
2technology.
3 Sec. 118. Section 466B.3, subsections 1 and 2, Code 2017,
4are amended to read as follows:
51. Council established. A water resources coordinating
6council is established within the department of agriculture
7and land stewardship. The council shall carry out the
8powers and duties described in this section in accordance
9with the policies and under the direction and supervision of
10the commission. The council shall advise the commission as
11required by the commission.
122. Purpose. The purpose of the council shall be to advise
13the commission regarding strategies and methods to preserve
14and protect Iowa’s water resources, and to coordinate the
15management of those resources in a sustainable and fiscally
16responsible manner. In the pursuit of this purpose providing
17advice to the commission and acting in accordance with its
18policies, and under its direction and supervision, the
19council shall use an integrated approach to water resource
20management, recognizing that insufficiencies exist in current
21approaches and practices, as well as in funding sources and
22the utilization of funds. The integrated approach used by the
23council shall attempt to overcome old categories, labels, and
24obstacles with the primary goal of managing the state’s water
25resources comprehensively rather than compartmentally.
26 Sec. 119. Section 466B.3, subsection 3, unnumbered
27paragraph 1, Code 2017, is amended to read as follows:
28The success of the council’s efforts made under this section
29 shall ultimately be measured by the following outcomes:
30 Sec. 120. Section 466B.3, subsection 6, paragraph c, Code
312017, is amended to read as follows:
32c. The council, acting in accordance with the policies and
33under the direction and supervision of the commission, shall
34develop recommendations for policies and funding promoting a
35watershed management approach to reduce the adverse impact
-116-1of future flooding on this state’s residents, businesses,
2communities, and soil and water quality. The council and the
3commission shall consider policies and funding options for
4various strategies to reduce the impact of flooding, including
5but not limited to additional floodplain regulation; wetland
6protection, restoration, and construction; the promulgation and
7implementation of statewide storm water management standards;
8conservation easements and other land management; perennial
9ground cover and other agricultural conservation practices;
10pervious pavement, bioswales, and other urban conservation
11practices; and permanent or temporary water retention
12structures. In developing recommendations, the council and
13the commission shall consult with hydrological and land use
14experts, representatives of cities, counties, drainage and
15levee districts, agricultural interests, and soil and water
16conservation districts, and other urban and regional planning
17experts.
18 Sec. 121. Section 466B.31, subsection 1, Code 2017, is
19amended to read as follows:
201. a. A watershed planning advisory council is established
21for purposes of assembling a diverse group of stakeholders
22to review research and make recommendations to various state
23entities regarding methods to protect water resources in the
24state, assure an adequate supply of water, mitigate and prevent
25floods, and coordinate the management of those resources in
26a sustainable, fiscally responsible, and environmentally
27responsible manner.
28b. The council shall carry out the powers and duties
29described in this section in accordance with the policies
30and under the direction and supervision of the commission.
31The council shall advise the commission as required by the
32commission.
33c. The advisory commission shall supervise the council may
34seek in seeking input from councils of governments or other
35organizations in the development of its recommendations. The
-117-1advisory council shall meet once a year and at other times as
2deemed necessary to meet the requirements of this section.
3The advisory council may appoint a task force to assist the
4advisory council in completing its duties.
5 Sec. 122. Section 466B.31, subsection 3, unnumbered
6paragraph 1, Code 2017, is amended to read as follows:
7By December 1 of each year, the watershed planning advisory
8council with approval by the commission shall submit a report
9to the governor, the general assembly, the department of
10agriculture and land stewardship, the department of natural
11resources, and the water resources coordinating council. The
12report shall include recommendations regarding all of the
13following:
14 Sec. 123. Section 466B.42, Code 2017, is amended to read as
15follows:
16466B.42 Water quality initiative.
17The division shall establish a A water quality initiative
18is established in order to assess and reduce nutrients in this
19state’s watersheds, including subwatersheds, and regional
20watersheds. The division commission shall establish oversee
21 and the division, acting in accordance with the policies
22and under the direction and supervision of the commission,
23shall administer the water quality initiative and advise
24the commission as required by the commission. As part of
25the initiative, the division shall administer projects to
26reduce nutrients in surface waters from nonpoint sources
27in a scientific, reasonable, and cost-effective manner.
28The commission and the division shall utilize a pragmatic,
29strategic, and coordinated approach with the goal of
30accomplishing reductions over time.
31 Sec. 124. NEW SECTION. 466B.51 Clean water fund.
321. A clean water fund is created in the state treasury
33under the management and control of the clean water commission.
34The clean water fund is composed of a general account, an
35assessment account, and an expenditures account.
-118- 12. The clean water fund’s general account includes moneys
2transferred from the natural resources and outdoor recreation
3trust fund pursuant to section 461.31A, moneys appropriated
4to the general account from the general assembly, and other
5moneys available to and obtained or accepted by the commission,
6including moneys from public or private sources. However, the
7general account shall not include moneys transferred from a
8commodity organization as described in subsection 3. Except as
9provided in subsection 3, all moneys received by the commission
10for deposit into the clean water fund shall be credited to the
11general account.
123. The clean water fund’s assessment account includes the
13following moneys collected and transferred to the account from
14the following commodity organizations:
15a. The Iowa dairy industry commission as established in
16chapter 179 or the Iowa state dairy association as recognized
17in that chapter, which shall transfer moneys collected from the
18state assessment for clean water as provided in that chapter,
19including section 179.5.
20b. The Iowa beef cattle producers association as established
21in chapter 181 which shall transfer moneys from the state
22assessment as provided in that chapter, including section
23181.13.
24c. The Iowa sheep and wool promotion board established
25pursuant to chapter 182 which shall transfer moneys from the
26state assessment as provided in that chapter, including section
27182.18.
28d. The Iowa pork producers council as established in chapter
29183A, or the Iowa pork producers association as recognized
30in that chapter, which shall transfer moneys from the state
31assessment as provided in that chapter, including section
32183A.7.
33e. The Iowa egg council as established in chapter 184 which
34shall transfer moneys from the state assessment as provided in
35that chapter, including section 184.13.
-119- 1f. The Iowa turkey marketing council as established in
2chapter 184A which shall transfer moneys from the state
3assessment as provided in that chapter, including section
4184A.4.
5g. The Iowa soybean association as recognized in chapter
6185 which shall transfer moneys from the state assessment as
7provided in that chapter, including section 185.26.
8h. The Iowa corn promotion board as established in chapter
9185C which shall transfer moneys from the state assessment as
10provided in that chapter, including section 185C.26.
114. The clean water fund’s expenditures account only
12includes moneys transferred from the general account and the
13state assessment account as provided in this section.
145. a. Moneys in the clean water fund shall not be used for
15any purpose other than described in this section.
16b. Moneys in the general account shall not be used for any
17purpose other than for transfer to the expenditures account.
18c. Moneys in the assessment account shall not be used for
19any purpose other than to do the following:
20(1) Pay administrative expenses which are limited to all of
21the following:
22(a) Reimbursing the department of agriculture and land
23stewardship or a commodity organization for all reasonable
24costs of conducting a referendum to determine if a state
25assessment for clean water is to be established, continued, or
26terminated. The division shall apply to the executive council
27if necessary to receive moneys required to pay for reasonable
28costs of conducting a referendum as provided in section 7D.10B.
29(b) Remitting refunds of moneys to persons who have paid a
30state assessment for clean water to a commodity organization,
31if the application for a refund has been approved by the
32commodity organization and submitted to the department as
33required by the division of soil conservation and water
34quality.
35(c) Paying reasonable expenses associated with the
-120-1collection and transfer of moneys associated with the
2collection of the state assessment for clean water and the
3processing of refund applications associated with such
4collection.
5(d) Transfer remaining moneys to the expenditures account
6as provided in this section.
76. Moneys in the fund’s expenditures account shall be
8expended by the clean water commission to support programs
9and projects administered to improve the state’s watersheds
10and surface waters, including but not limited to projects
11associated with the water quality initiative established
12pursuant to section 466B.42. Moneys in the expenditures
13account shall be used to support soil conservation and
14watershed protection, the installation of conservation
15practices and watershed protection improvements as provided
16in chapters 161A, 161C, 461A, 466, and 466A. Moneys in the
17expenditures account shall also be used to support water
18quality programs and projects administered by the Iowa finance
19authority under chapter 16.
207. Notwithstanding section 8.33, moneys in the clean
21water fund shall not revert. Notwithstanding section 12C.7,
22subsection 2, interest or earnings on moneys in the fund shall
23be credited to the fund.
24 Sec. 125. NEW SECTION. 466B.52 Clean water commission —
25appointment and administration.
261. A clean water commission is created which shall be housed
27in the division of soil conservation and water quality of the
28department of agriculture and land stewardship.
292. The commission shall be comprised of nine voting members
30appointed by the governor.
313. The commission shall also be comprised of four
32legislative members who shall serve in a nonvoting, ex officio
33capacity. The legislative members shall include all of the
34following:
35a. Two members of the senate. One senator shall be
-121-1appointed by the majority leader of the senate and one senator
2shall be appointed by the minority leader of the senate.
3b. Two members of the house of representatives. One
4member shall be appointed by the speaker of the house of
5representatives and one member shall be appointed by the
6minority leader of the house of representatives.
74. The commission shall also be comprised of persons
8appointed by commodity organizations described in section
9466B.51 who shall serve in a nonvoting, ex officio capacity.
10Each commodity organization may appoint one person if producers
11who are members of the commodity organization have approved
12the establishment of a state assessment for clean water to be
13transferred to the clean water fund created in section 466B.51.
145. Voting members shall serve four-year terms and may be
15reappointed. The initial terms of the voting members shall
16be staggered at the discretion of the governor. Nonvoting
17members shall serve at the pleasure of the persons or commodity
18organizations making their appointments.
196. Sections 69.16, 69.16A, and 69.19 shall apply to the
20voting members. The voting members are subject to senate
21confirmation.
227. a. A member, other than a legislative member, is
23eligible to receive compensation as provided in section 7E.6,
24and shall be reimbursed for actual and necessary expenses
25incurred in performance of the members’ duties. All expenses
26shall be paid from appropriations for such purposes and the
27commission shall be subject to the budget requirements of
28chapter 8.
29b. A legislative member serves for a term as provided in
30section 69.16B and is eligible for per diem and expenses as
31provided in section 2.10.
328. The commission shall meet in January of each year for the
33purpose of electing one of its voting members as chairperson.
349. The commission shall meet on a regular basis and at the
35call of the chairperson or upon the written request to the
-122-1chairperson of five or more voting members. Written notice
2of the time and place of the meeting shall be given to each
3member.
410. A majority of voting members constitutes a quorum,
5and the affirmative vote of a majority of the voting members
6is necessary for any action taken by the board, except that a
7lesser number may adjourn a meeting.
811. Any vacancy in the membership of the commission shall
9be filled in the same manner as regular appointments are made
10for the unexpired portion of the regular term. A vacancy in
11the membership of the commission does not impair the rights of
12a quorum to exercise all rights and perform all duties of the
13commission.
1412. A person shall not serve as a member of the commission
15if the person has an interest in a contract or job of work or
16material or the profits thereof or service to be performed
17for the department of agriculture and land stewardship or
18department of natural resources. Any member of the commission
19who accepts employment with or acquires any stock, bonds, or
20other interest in any company or corporation doing business
21with the department of agriculture and land stewardship or the
22department of natural resources shall be disqualified from
23remaining a member of the commission.
2413. The department of agriculture and land stewardship in
25cooperation with the department of natural resources shall
26assist the commission by doing all of the following:
27a. Provide the commission with necessary facilities, items,
28and clerical support.
29b. Perform administrative functions necessary for the
30management of the commission.
31 Sec. 126. NEW SECTION. 466B.53 Clean water commission —
32powers and duties.
331. The purpose of the clean water commission shall be to
34identify and finance methods to improve surface water quality,
35including by reducing contributing contaminant loads to
-123-1receiving surface waters and reducing soil erosion and sediment
2loss.
32. In furthering the purpose set forth in subsection 1, the
4clean water commission shall do all of the following:
5a. Develop comprehensive water quality policies and plans,
6that identify existing plans, programs, and projects. The
7commission shall use existing data and amend, augment, and
8consolidate existing plans or strategies which have improved or
9which promise to improve water quality.
10b. Identify additional water quality improvement needs on a
11watershed basis, including the need to develop new or innovate
12programs or projects.
13c. Measure the effectiveness and results of programs and
14projects according to performance measures and associated
15benchmarks. The data demonstrating accountability collected by
16the department shall be made readily available and maintained
17in a computer-readable format.
183. The clean water commission shall establish objectives
19of programs described in subsection 2 to be achieved by
20dates identified by the commission which may include program
21timelines and milestones. The commission shall measure and
22monitor progress toward achieving program objectives.
234. The commission shall develop comprehensive water quality
24policies and plans, that integrate existing plans, programs,
25and projects in accordance with the Iowa nutrient reduction
26strategy. The commission shall use existing data and amend,
27augment, and consolidate existing plans or strategies which
28have improved or which promise to improve water quality.
29The commission shall also develop new comprehensive water
30quality policies and plans, that integrate existing plans,
31programs, and projects. The information collected by the
32department shall be made readily available and maintained in a
33computer-readable format.
345. The commission shall identify additional water quality
35improvement needs on a watershed basis, including the need to
-124-1develop new or innovate programs or projects.
26. By October 1, 2019, and by October 1 of each year
3thereafter, the commission shall submit a report to the
4governor and the general assembly used to support the programs
5described in subsection 2. A report shall include all of the
6following:
7a. A description and update of the current status of water
8quality programs and associated projects, and the expenditure
9of moneys appropriated to support the programs and associated
10projects administered by state entities, including but not
11limited to the department of agriculture and land stewardship,
12the department of natural resources, Iowa state university
13of science and technology, the Iowa finance authority, and
14watershed management authorities.
15b. An evaluation of the successes and failures of a
16water quality program and any associated project in meeting
17the program’s objectives. The report shall include any
18legislative proposals to enact, amend, or repeal statutes and
19any administrative proposals to adopt, revise, or rescind
20administrative rules.
217. The Iowa finance authority, the department of natural
22resources, and the department of agriculture and land
23stewardship shall cooperate with the commission in providing
24the commission with all information necessary for the
25commission to carry out the provisions of this section.
26 Sec. 127. NEW SECTION. 466B.54 Clean water commission —
27study.
281. The clean water commission, in cooperation with the
29department of agriculture and land stewardship, the department
30of natural resources, and the Iowa finance authority shall
31prepare and submit a clean water evaluation and expenditure
32report to the governor and general assembly by January 15,
332018.
342. The clean water evaluation and expenditure report shall
35include all of the following:
-125- 1a. A description of current clean water programs and
2projects, and the expenditure of moneys appropriated to
3support those programs and projects. The report shall evaluate
4successes and failures of each program and project in meeting
5water quality objectives. The report may also recommend
6methods to improve the program.
7b. A plan for allocating moneys in the expenditures account
8of the clean water fund created in section 466B.51. The plan
9shall include a formula which takes into account the extent to
10which moneys may be used for all of the following:
11(1) Watersheds requiring immediate improved surface water
12quality.
13(2) The establishment of infrastructure, conservation
14measures, and practices that reduce contributing nutrient
15loads, associated sediment, or contaminants from nonpoint
16sources to surface waters in a scientific, reasonable, and
17cost-effective manner.
18(3) The administration of programs or projects in a manner
19that is consistent with the Iowa nutrient reduction strategy.
20(4) The degree to which political subdivisions or
21stakeholders have demonstrated a willingness and have the
22resources to participate in programs or projects.
23(5) The degree to which clean water programs can attract
24additional funding from private and public sources including
25federal funding.
263. The clean water evaluation and expenditure report shall
27include a detailed plan for consolidating all water quality
28and soil conservation initiatives and programs and associated
29projects administered by the department of agriculture and
30land stewardship, the department of natural resources, and the
31Iowa finance authority under the overall supervision of the
32commission. The plan shall include any legislative proposals
33to enact, amend, or repeal statutes and any administrative
34proposals to adopt, revise, or rescind administrative rules.
35 Sec. 128. NEW SECTION. 466B.55 Secretary of agriculture,
-126-1treasurer of state, and auditor of state — certifications.
21. By March 1 of each fiscal year, the secretary of
3agriculture, the treasurer of state, and the auditor of
4state shall meet to verify whether one or more commodity
5organizations are collecting a clean water assessment as
6described in section 466B.51. The secretary of agriculture
7shall prepare a certification for delivery to the Iowa
8administrative code editor for publication in the Iowa
9administrative bulletin.
102. By March 1 of each fiscal year, the secretary of
11agriculture, the treasurer of state, and the auditor of state
12shall together verify the total amount of moneys collected
13by all commodity organizations certified under subsection 1
14during the preceding fiscal year. If a commodity organization
15was certified after the end of the preceding fiscal year, the
16commodity organization shall be deemed to have collected a
17clean water assessment at the rate in effect on the date of the
18commodity organization’s certification.
193. By April 1 of each fiscal year when the secretary of
20agriculture, the treasurer of state, and the auditor of state
21verify that during the preceding fiscal year twenty million
22dollars was collected by all commodity organizations under
23subsection 2, the secretary of agriculture shall prepare a
24certification for delivery to all of the following:
25a. The director of revenue.
26b. The administrative code editor who shall publish the
27certification in the Iowa administrative bulletin.
28c. The Iowa Code editor.
294. This section is repealed on July 1 of the fiscal year in
30which the secretary of agriculture prepares and delivers the
31third certification as required in subsection 3.
32DIVISION X
33ADMINISTRATION
34 Sec. 129. NAME CHANGE TO REFERENDUM FOR DIRECT USE. Nothing
35in this Act requires the department of agriculture and land
-127-1stewardship or a commodity organization described in section
2466B.51, as enacted in this Act, to conduct a referendum
3because of this Act’s reference to a referendum as a referendum
4for direct use.
5EXPLANATION
6The inclusion of this explanation does not constitute agreement with
7the explanation’s substance by the members of the general assembly.
8This bill relates to agricultural commodity organizations
9representing producers of that commodity that are authorized
10to impose an excise tax or “assessment” (and commonly
11referred to as a “checkoff”) on the commodity when first
12sold by the producer to a first purchaser. The goal of the
13assessment is to fund promotional activities which involve
14market development, research, and education. The commodity
15organizations include the Iowa dairy industry commission or
16Iowa state dairy association (Code chapter 179), Iowa beef
17cattle producers association (Code chapter 181), Iowa sheep and
18wool promotion board (Code chapter 182), Iowa pork producers
19council or Iowa pork producers association (Code chapter 183A),
20Iowa egg council (Code chapter 184), the Iowa turkey marketing
21council (Code chapter 184A), the Iowa soybean association
22(Code chapter 185), and the Iowa corn promotion board (Code
23chapter 185C). The bill requires a commodity organization
24to establish a separate state assessment for clean water, if
25approved by a majority of its members at a referendum. The
26bill also requires commodity organizations to conduct a special
27referendum to increase the rate of the assessment for clean
28water. The rate of the state assessment is established by the
29governing body of the commodity organization not to exceed the
30assessment for direct use or national assessment or both. The
31referendum would be conducted in the same manner as an initial
32or special referendum conducted by the commodity organization
33under its specific Code chapter. The special assessment could
34be continued or terminated in the same manner as the commodity
35organization’s assessment for promotional activities. Moneys
-128-1from the state assessment would be collected by the commodity
2organization and transferred to a newly created clean water
3fund.
4The bill establishes a clean water commission housed in
5the division of soil conservation and water quality of the
6department of agriculture and land stewardship. The commission
7is composed of nine voting members appointed by the governor,
8four legislative members who serve in a nonvoting, ex officio
9capacity, and persons appointed by the commodity organizations,
10who also serve in a nonvoting, ex officio capacity.
11Appointments are contingent on the commodity organization
12having approved the establishment of a state assessment for
13clean water to be transferred to the clean water fund. The
14purpose of the commission is to finance methods to improve
15surface water quality, including by reducing contributing
16contaminant loads to receiving surface waters and reducing soil
17erosion and sediment loss. The commission is responsible for
18overseeing the water quality initiative as administered by the
19division of soil conservation and water quality.
20Moneys collected from the state assessment are to be
21credited to the clean water fund which is under the supervision
22of the commission. The fund is composed of a general
23account, an assessment account, and an expenditures account.
24The fund’s general account includes moneys transferred
25from the constitutionally protected natural resources and
26outdoor recreation trust fund (Code section 461.31), moneys
27appropriated by the general assembly, and other moneys
28available to and obtained or accepted by the commission.
29Moneys collected from the state assessment are to be credited
30to the assessment account. The bill also includes an
31expenditures account which only includes moneys transferred
32from the general account and the assessment account for
33purposes of financing methods to improve surface water quality.
34Moneys transferred from the assessment account are to be used
35to reimburse the department of agriculture and land stewardship
-129-1or a commodity organization for reasonable costs of conducting
2a referendum to determine if a state assessment for clean water
3is to be established, continued, or terminated. The commission
4can also apply to the executive council for moneys required to
5pay for reasonable costs of conducting a referendum. Moneys
6deposited into the expenditures account may also be used to
7pay refunds to producers who have paid the state assessment
8if the refund application has been approved by the commodity
9organization.
10The bill provides for possible progressive increases
11in state sales and use taxes. An increased amount must be
12credited to the natural resources and outdoor recreation trust
13fund according to a constitutional amendment (Article VII,
14section 10). The amount credited to the fund must be equal
15to the amount generated by an increase in the state sales tax
16rate occurring after the effective date of the constitutional
17amendment, not to exceed a rate of three-eighths of one percent
18(0.375). The state sales tax rate has not been increased since
19November 2, 2010, the date when the constitutional amendment
20was ratified. The bill provides that an increase of one-eighth
21of one percent in the sales tax is triggered each of three
22fiscal years when the secretary of agriculture, the treasurer
23of state, and the auditor of state certify that a total of $20
24million in clean water assessments for that preceding year was
25collected by participating commodity organizations. The bill
26revises the allocations from the natural resources and outdoor
27recreation trust fund as set forth in statute (Code chapter
28461). On July 1 of each fiscal year, an amount of moneys in
29the Code chapter 461 trust fund equal to the amount in the
30clean water fund’s assessment account is to be transferred to
31the clean water fund’s general account. The moneys remaining
32in the Code chapter 461 trust fund are to be allocated on a
33percentage basis as set forth in statute.
34The commission, in cooperation with the department of
35agriculture and land stewardship, the department of natural
-130-1resources, and the Iowa finance authority, must submit a
2report to the governor and general assembly by January 15,
32019, which includes a description of current clean water
4programs and projects and a detailed plan for consolidating all
5water quality and soil conservation initiatives and programs
6and associated projects administered by the department of
7agriculture and land stewardship, the department of natural
8resources, and the Iowa finance authority under the overall
9supervision of the commission.
-131-da/rj