Bill Text: IA HF2355 | 2023-2024 | 90th General Assembly | Introduced
Bill Title: A bill for an act allowing a corn producer to choose not to participate in the promotional order otherwise requiring the first purchaser to deduct a state assessment imposed on the per bushel sales price that is forwarded to the Iowa corn promotion board, and making penalties applicable.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2024-02-07 - Introduced, referred to Agriculture. H.J. 212. [HF2355 Detail]
Download: Iowa-2023-HF2355-Introduced.html
House
File
2355
-
Introduced
HOUSE
FILE
2355
BY
HORA
A
BILL
FOR
An
Act
allowing
a
corn
producer
to
choose
not
to
participate
1
in
the
promotional
order
otherwise
requiring
the
first
2
purchaser
to
deduct
a
state
assessment
imposed
on
the
3
per
bushel
sales
price
that
is
forwarded
to
the
Iowa
corn
4
promotion
board,
and
making
penalties
applicable.
5
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
6
TLSB
5828YH
(4)
90
da/ns
H.F.
2355
Section
1.
Section
185C.1,
Code
2024,
is
amended
by
adding
1
the
following
new
subsection:
2
NEW
SUBSECTION
.
3A.
“Certificate”
means
a
certificate
of
3
nonparticipation
as
provided
in
section
185C.20A.
4
Sec.
2.
NEW
SECTION
.
185C.20A
Certificate
of
5
nonparticipation.
6
1.
When
purchasing
corn,
a
first
purchaser
presented
with
7
a
certificate
of
nonparticipation
shall
not
deduct
a
state
8
assessment
and
shall
not
be
liable
for
failing
to
forward
the
9
state
assessment
to
the
board.
A
first
purchaser
who
by
error
10
deducts
a
state
assessment
in
violation
of
this
section
is
11
not
liable
to
repay
the
producer
for
any
part
of
the
deducted
12
amount.
13
2.
The
board
shall
publish
all
forms
necessary
for
a
14
producer
to
apply
for
the
issuance
of
one
or
more
certificates,
15
or
to
amend
an
issued
certificate.
The
board
shall
approve
16
an
application
if
it
contains
all
accurate
information
17
required
to
issue
a
certificate.
A
certificate
must
at
least
18
state
identifying
information
regarding
the
producer
and
the
19
current
marketing
year
for
which
the
certificate
applies.
A
20
certificate
may
include
a
unique
identification
number
assigned
21
by
the
board.
The
forms
must
allow
a
producer
to
apply
for
and
22
be
issued
a
certificate
electronically.
23
3.
Upon
consent
of
the
producer,
the
board
may
present
24
the
issued
certificate
to
one
or
more
first
purchasers
listed
25
in
the
approved
application.
The
board
shall
present
the
26
certificate
to
a
first
purchaser
in
any
manner
agreed
to
by
27
the
board
and
first
purchaser.
Upon
notice
provided
to
the
28
producer
by
the
board,
the
board
and
first
purchaser
may
change
29
the
presentation
procedure
at
any
time.
30
4.
The
board
shall
issue
a
certificate
or
present
the
31
first
purchaser
with
the
certificate
within
thirty
days
after
32
receiving
an
approved
application.
33
5.
The
board
shall
reissue
the
certificates
to
the
producer
34
or
present
the
certificates
to
first
purchasers
for
each
35
-1-
LSB
5828YH
(4)
90
da/ns
1/
5
H.F.
2355
subsequent
marketing
year,
except
if
any
of
the
following
1
apply:
2
a.
Information
in
the
producer’s
application
is
no
longer
3
accurate.
A
producer
may
submit
an
amended
application
to
the
4
board
within
thirty
days
before
the
anniversary
date
that
the
5
certificate
was
last
issued.
6
b.
The
board
revises
its
application
form
or
certificate.
7
6.
A
first
purchaser
who
is
presented
with
a
certificate
8
shall
maintain,
as
part
of
its
business
records,
the
9
certificate
together
with
information
regarding
the
purchase
10
and
the
state
assessment
not
deducted.
11
7.
The
board
shall
adopt
rules
pursuant
to
chapter
17A
as
12
necessary
to
administer
this
section.
13
Sec.
3.
Section
185C.22,
Code
2024,
is
amended
to
read
as
14
follows:
15
185C.22
State
assessment
on
purchase
invoice.
16
After
a
promotional
order
has
been
issued,
the
first
17
purchaser
at
the
time
of
payment
for
corn
shall
show
on
18
the
purchase
invoice
delivered
to
the
producer
all
of
the
19
following:
20
1.
The
total
amount
of
the
state
assessment
deducted
from
21
the
sale
on
the
purchase
invoice
.
22
2.
The
total
amount
of
the
state
assessment
not
deducted
23
from
the
sale
due
to
the
presentation
of
a
certificate.
24
Sec.
4.
Section
185C.23,
Code
2024,
is
amended
to
read
as
25
follows:
26
185C.23
Deduction
of
state
assessment.
27
1.
The
first
purchaser
shall
do
either
of
the
following:
28
a.
Deduct
the
state
assessment
shall
be
deducted
from
the
29
purchase
price
of
corn
at
the
time
of
sale,
and
forwarded
30
forward
the
amount
collected
in
state
assessments
to
the
board
31
by
the
first
purchaser
.
32
b.
Based
on
the
presentation
of
a
certificate,
not
deduct
33
the
state
assessment
from
the
purchase
price
of
corn
at
34
the
time
of
sale,
and
forward
a
statement
of
the
amount
not
35
-2-
LSB
5828YH
(4)
90
da/ns
2/
5
H.F.
2355
collected
to
the
board.
1
2.
The
first
purchaser
shall
forward
to
the
board
the
2
amounts
collected
and
not
collected
in
the
manner
and
at
3
intervals
determined
by
the
board.
4
Sec.
5.
Section
185C.27,
Code
2024,
is
amended
to
read
as
5
follows:
6
185C.27
Refund
of
assessment.
7
A
producer
who
has
sold
corn
and
had
a
state
assessment
8
deducted
from
the
sale
price,
by
application
in
writing
to
the
9
board,
may
secure
a
refund
in
the
amount
deducted.
The
refund
10
shall
be
payable
only
when
the
application
shall
have
been
11
is
made
to
the
board
within
sixty
days
after
the
deduction.
12
Application
forms
shall
be
given
by
the
board
to
each
first
13
purchaser
when
requested
and
the
first
purchaser
shall
make
14
the
applications
available
to
any
producer
upon
request
.
15
Each
application
for
a
refund
submitted
to
the
board
by
a
16
producer
shall
have
attached
to
the
application
proof
of
the
17
state
assessment
deducted.
The
proof
of
the
state
assessment
18
deducted
may
be
in
the
form
of
a
duplicate
or
certified
copy
19
of
the
purchase
invoice
delivered
to
the
producer
by
the
first
20
purchaser
pursuant
to
section
185C.22
.
The
board
shall
have
21
thirty
days
from
the
date
the
application
for
a
refund
is
22
received
to
remit
the
refund
to
the
producer.
The
board
may
23
provide
for
refunds
of
a
federal
assessment
as
provided
by
24
federal
law.
Unless
inconsistent
with
federal
law,
refunds
25
shall
be
made
under
section
185C.26
.
26
EXPLANATION
27
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
28
the
explanation’s
substance
by
the
members
of
the
general
assembly.
29
BACKGROUND.
An
excise
tax
or
assessment
is
imposed
on
the
30
first
purchaser
of
a
number
of
different
types
of
commodities
31
as
a
pass-through
(commonly
referred
to
as
a
“checkoff”),
which
32
may
be
administered
under
federal
or
state
law
or
both.
In
the
33
case
of
corn,
the
assessment
is
implemented
and
administered
34
under
state
law
(Code
chapter
185C).
The
purpose
of
the
35
-3-
LSB
5828YH
(4)
90
da/ns
3/
5
H.F.
2355
state
assessment
for
corn
is
similar
to
assessments
for
other
1
commodities:
to
fund
activities
which
involve
improving
2
market
development,
which
includes
aspects
related
to
the
3
commodity’s
production
and
market
share,
such
as
research
and
4
education
(Code
section
185C.1).
The
state
assessment
on
corn
5
takes
effect,
is
continued,
or
is
terminated
on
the
basis
6
of
a
majority
vote
of
corn
producers
(producers)
voting
in
7
a
referendum
conducted
by
the
department
of
agriculture
and
8
land
stewardship
(DALS)
(Code
section
185C.25).
The
checkoff
9
moneys
imposed
due
to
the
state
assessment
are
collected
and
10
expended
pursuant
to
a
promotional
order
under
the
direction
11
of
an
Iowa
corn
promotion
board
(board),
a
governing
body
of
12
elected
producers
(Code
sections
185C.8,
185C.11,
and
185C.13).
13
The
rate
of
the
state
assessment
is
imposed
per
marketing
year,
14
beginning
September
1
and
ending
August
31.
The
current
rate
15
of
the
state
assessment
is
1
cent
per
bushel
with
a
maximum
16
rate
of
3
cents
per
bushel
(Code
section
185C.21)
subject
to
17
a
producer’s
right
of
refund
(Code
section
185C.27).
The
18
collected
checkoff
moneys
are
deposited
into
a
separate
19
state-controlled
fund
established
in
the
state
treasury
(state
20
fund)
and
transferred
by
the
department
of
administrative
21
services
to
the
corn
promotion
fund,
an
account
in
a
qualified
22
financial
institution
eligible
to
hold
public
funds
(Code
23
chapter
12C),
and
established
by
the
board
(Code
section
24
185C.26).
25
BILL’S
PROVISIONS.
This
bill
allows
a
producer
to
apply
26
to
the
board
to
be
issued
a
certificate
of
nonparticipation
27
(certificate).
When
presented
with
a
certificate,
the
first
28
purchaser
will
not
deduct
the
state
assessment
and
will
not
be
29
liable
for
failing
to
forward
the
state
assessment
to
the
board
30
(new
Code
section
185C.20A).
Alternatively,
upon
consent
of
31
the
producer,
the
board
may
directly
present
the
certificate
32
to
a
first
purchaser
listed
in
the
producer’s
application.
A
33
certificate
is
valid
only
for
the
current
marketing
year
as
34
stated
on
the
certificate.
However,
the
board
must
reissue
a
35
-4-
LSB
5828YH
(4)
90
da/ns
4/
5
H.F.
2355
certificate
each
subsequent
marketing
year,
unless
information
1
in
the
application
is
no
longer
valid
or
the
board
revises
its
2
application.
The
first
purchaser
must
remit
an
invoice
to
the
3
producer
showing
that
the
state
assessment
was
not
deducted.
4
If
the
state
assessment
was
improperly
deducted,
a
producer
may
5
apply
to
the
board
for
a
refund
by
forwarding
a
copy
of
the
6
certificate
and
invoice.
7
APPLICABLE
PENALTY.
A
person
who
willfully
violates
8
a
provision
of
the
bill
is
guilty
of
a
simple
misdemeanor
9
(Code
section
185.31).
A
simple
misdemeanor
is
punishable
by
10
confinement
for
no
more
than
30
days
and
a
fine
of
at
least
$105
11
but
not
more
than
$855.
12
-5-
LSB
5828YH
(4)
90
da/ns
5/
5