Bill Text: IA HF2465 | 2015-2016 | 86th General Assembly | Introduced


Bill Title: A bill for an act providing for a state assessment for clean water imposed on agricultural commodities, including establishing procedures for referendums to establish, continue, or terminate the state assessment, the transfer of moneys to the department of agriculture and land stewardship, and the appropriation of moneys.

Spectrum: Partisan Bill (Democrat 10-0)

Status: (Introduced - Dead) 2016-04-28 - Sponsors added, Hunter, Lensing, Mascher, Thede, and Winckler. H.J. 782. [HF2465 Detail]

Download: Iowa-2015-HF2465-Introduced.html
House File 2465 - Introduced




                                 HOUSE FILE       
                                 BY  ISENHART and ANDERSON

                                      A BILL FOR

  1 An Act providing for a state assessment for clean water
  2    imposed on agricultural commodities, including establishing
  3    procedures for referendums to establish, continue, or
  4    terminate the state assessment, the transfer of moneys to
  5    the department of agriculture and land stewardship, and the
  6    appropriation of moneys.
  7 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
    TLSB 5561YH (8) 86
    da/rj

PAG LIN



  1  1                           DIVISION I
  1  2               IOWA DAIRY INDUSTRY COMMISSION AND
  1  3                  IOWA STATE DAIRY ASSOCIATION
  1  4    Section 1.  Section 179.1, Code 2016, is amended by adding
  1  5 the following new subsections:
  1  6    NEW SUBSECTION.  01.  "Assessment" means an excise tax on the
  1  7 sale of milk which may include a state assessment for direct
  1  8 use and a state assessment for water.
  1  9    NEW SUBSECTION.  2A.  "Federal Act" means the Dairy Product
  1 10 Stabilization Act of 1983, 7 U.S.C. {4501 et seq.
  1 11    NEW SUBSECTION.  3A.  "National assessment" means an excise
  1 12 tax on the sale of milk imposed pursuant to the federal Act.
  1 13    NEW SUBSECTION.  10.  "Secretary" means the secretary of
  1 14 agriculture.
  1 15    Sec. 2.  Section 179.1, subsection 2, Code 2016, is amended
  1 16 to read as follows:
  1 17    2.  The term "commission" shall mean "Commission" means the
  1 18 Iowa dairy industry commission created in section 179.2.
  1 19    Sec. 3.  Section 179.2, subsections 4, 5, 6, and 7, Code
  1 20 2016, are amended to read as follows:
  1 21    4.  a.  When a national promotional order is established by
  1 22 the United States department of agriculture pursuant to the
  1 23 Dairy Product Stabilization Act of 1983 federal Act, collection
  1 24 of the excise tax state assessment for direct use described in
  1 25 section 179.5 shall be suspended for the period in which the
  1 26 national order is in effect. The commission shall continue to
  1 27 operate thereafter for only the period of time necessary to pay
  1 28 refunds and disburse the funds moneys remaining in the dairy
  1 29 industry fund for the purposes enumerated in administering
  1 30  this chapter. Upon completion of these acts, the existence of
  1 31 the Iowa dairy industry commission shall be suspended. The
  1 32 secretary of agriculture shall certify the suspension of the
  1 33 commission as of a date certain to the Iowa dairy industry
  1 34  commission and the Iowa state dairy association. When the
  1 35 existence of the commission is suspended, the terms of office
  2  1 being served by individual commissioners shall terminate.
  2  2    b.  The establishment of a national promotional order shall
  2  3 not affect the imposition of a state assessment for clean water
  2  4 established pursuant to section 179.13A.
  2  5    5.  When the national promotional order expires, the period
  2  6 of suspension of the excise tax state assessment for direct use
  2  7 established in section 179.5 shall terminate and the secretary
  2  8 of agriculture shall take the steps necessary to collect that
  2  9 excise tax state assessment and otherwise fulfill the duties of
  2 10 the commission, except that of expending funds moneys collected
  2 11 under the excise tax that state assessment, until those
  2 12 duties can be resumed by the reactivated commission. When the
  2 13 national promotional order expires, the period of suspension of
  2 14 the commission shall terminate. The secretary of agriculture
  2 15  shall call the first meeting of the reactivated commission.
  2 16 Upon reactivation, the commission shall reimburse the secretary
  2 17 of agriculture for expenses incurred in carrying out the duties
  2 18 provided in this subsection.
  2 19    6.  When the national dairy promotion program expires and
  2 20 the suspension of the Iowa dairy industry commission terminates
  2 21 pursuant to subsection 5, all first purchasers shall, in a
  2 22 manner designed to reflect their proportionate contributions
  2 23 to the national dairy promotion program in its most recently
  2 24 completed fiscal year, nominate two resident producers for each
  2 25 of the sixteen offices of the commission. The secretary of
  2 26 agriculture shall then appoint one nominee from each set of
  2 27 two nominees as commissioners of the reactivated Iowa dairy
  2 28 industry commission. The secretary of agriculture shall
  2 29 stagger the terms of the reactivated commission resulting in
  2 30 as nearly as possible one third of the commissioners serving
  2 31 for one year, one third of the commissioners serving for two
  2 32 years, and one third of the commissioners serving for three
  2 33 years. After the initial staggering of terms by the secretary,
  2 34 commissioners shall be appointed to three=year terms.
  2 35    7.  The establishment or expiration of a national
  3  1 promotional order shall not affect the imposition of a state
  3  2 assessment for clean water established pursuant to section
  3  3 179.13A.
  3  4    7.  8.  After the reactivated commission has been formed,
  3  5 nominations for commissioners shall be made by first
  3  6 purchasers in a manner designed to reflect their proportionate
  3  7 contributions to the Iowa dairy industry commission in its most
  3  8 recently completed fiscal year.
  3  9    Sec. 4.  Section 179.3, Code 2016, is amended by adding the
  3 10 following new subsection:
  3 11    NEW SUBSECTION.  10.  To cooperate with the division of soil
  3 12 conservation and water quality of the department of agriculture
  3 13 and land stewardship in transferring moneys collected from
  3 14 the state assessment for clean water to the clean water fund
  3 15 created in section 466B.51.
  3 16    Sec. 5.  Section 179.4, Code 2016, is amended to read as
  3 17 follows:
  3 18    179.4  Expenditure of funds Use of moneys.
  3 19    Funds collected through Moneys collected by the commission
  3 20 from the excise tax are to state assessment for direct use
  3 21 imposed pursuant to section 179.5 shall be used for purposes
  3 22 of advertising and promotion, product, process, and nutrition,
  3 23 dietetics, and physiology research, nutrition education, public
  3 24 relations, research and development, and for other activities
  3 25 that contribute to producer efficiency and productivity.
  3 26 In addition, the commission shall use these funds moneys
  3 27  to maintain existing markets, to make contributions to
  3 28 organizations working toward the purposes of this section,
  3 29 and to assist in the development of new or enlarged markets
  3 30 for milk, both domestic and foreign. The primary purpose for
  3 31 use of these funds moneys is to increase consumption of milk.
  3 32 The commission may contract for advertising, publicity, sales
  3 33 promotion, research, and educational services the committee
  3 34  commission deems appropriate to further the objectives of this
  3 35 section.
  4  1    Sec. 6.  Section 179.5, Code 2016, is amended to read as
  4  2 follows:
  4  3    179.5  Excise tax ==== administration of moneys ====
  4  4 appropriation.
  4  5    1.  a.  There is levied and imposed an excise tax a state
  4  6 assessment for direct use on all producers within the state
  4  7 at a rate of three=fourths of one percent of the gross value
  4  8 of milk produced in the state and which may be continued by
  4  9 special referendum as provided in section 179.13A.
  4 10    b.  There is imposed a state assessment for clean water on
  4 11 all producers within the state at a rate established by the
  4 12 commission not to exceed the rate of the state assessment for
  4 13 direct use described in paragraph "a", if the state assessment
  4 14 for clean water is established or continued pursuant to section
  4 15 179.13A.
  4 16    2.  All taxes levied and The state assessment for direct use
  4 17 and the state assessment for clean water imposed under this
  4 18 chapter shall be deducted from the sales price received by the
  4 19 producer and shall be collected by the first purchaser, except
  4 20 as follows:
  4 21    a.  If the producer produces milk from cows and sells the
  4 22 milk directly to the consumer, the taxes each state assessment
  4 23  shall be remitted by that producer.
  4 24    b.  If the producer sells milk to a first purchaser outside
  4 25 the state, the taxes are each state assessment is due and
  4 26 payable by that producer before the shipment is made, except
  4 27 that the commission may make agreements with extra state
  4 28 purchasers for the keeping of records and the collection of the
  4 29 taxes each state assessment as necessary to secure the payment
  4 30 of the taxes each state assessment within the time fixed by
  4 31 this chapter.
  4 32    3.  All taxes levied and The state assessment for direct use
  4 33 and the state assessment for clean water if established and
  4 34  imposed under this chapter, and any other contributions made to
  4 35 the dairy industry commission, shall be paid to and collected
  5  1 by the commission within thirty days after the end of the month
  5  2 during which the milk was marketed.
  5  3    4.  The commission shall remit moneys collected from
  5  4  the taxes state assessment for direct use and any other
  5  5 contributions obtained by the commission to the treasurer of
  5  6 the state each quarter, and at the same time shall render to
  5  7 the director of the department of administrative services an
  5  8 itemized and verified report showing the source from which
  5  9 the taxes moneys collected from the state assessment for
  5 10 direct use and voluntary contributions were obtained. All
  5 11 taxes moneys collected from the state assessment for direct
  5 12 use and voluntary contributions received, collected, and
  5 13 remitted by the commission shall be placed in a special fund
  5 14 by the treasurer of state and the director of the department
  5 15 of administrative services, to be known as the "dairy industry
  5 16 fund" to be used by the Iowa dairy industry commission for
  5 17 the purposes set out in this chapter and to administer and
  5 18 enforce the laws relative to this chapter. The department of
  5 19 administrative services shall transfer moneys from the fund
  5 20 to the commission for deposit into an account established
  5 21 by the commission in a qualified financial institution.
  5 22 The department shall transfer the moneys as provided in a
  5 23 resolution adopted by the commission. However, the department
  5 24 is only required to transfer moneys once during each day and
  5 25 only during hours when the offices of the state are open.
  5 26 Moneys deposited in the fund and transferred to the commission
  5 27 as provided in this section are appropriated and shall be used
  5 28 for the purpose of carrying out the provisions of this chapter.
  5 29    5.  The commission may deposit moneys collected from the
  5 30 state assessment for clean water in a qualified financial
  5 31 institution until transferred to the clean water fund
  5 32 created in section 466B.51.  During the period when a
  5 33 national promotional order is in effect, the Iowa state dairy
  5 34 association shall deposit the moneys collected from that
  5 35 state assessment for clean water in a qualified financial
  6  1 institution until transferred to the clean water fund. If the
  6  2 state assessment for clean water is terminated as provided in
  6  3 section 179.13A, the remaining moneys collected from that state
  6  4 assessment shall be immediately transferred to the clean water
  6  5 fund.
  6  6    6.  The commission may require that the invoice also show the
  6  7 total amount of any state assessment for direct use deducted
  6  8 from the sales price.  If a national assessment is being
  6  9 collected, the Iowa state dairy association may require that
  6 10 the invoice for the national assessment also show the total
  6 11 amount of any national assessment, if permitted by federal law.
  6 12 If a state assessment for clean water is collected, the first
  6 13 purchaser shall furnish the producer at the time of payment an
  6 14 invoice showing the total amount of the state assessment for
  6 15 clean water deducted from the sales price.
  6 16    4.7.  a.  A person from whom the excise tax provided in
  6 17 this chapter a state assessment for direct use is collected
  6 18 may, by application filed with the commission within thirty
  6 19 days after the collection of the tax state assessment, have the
  6 20 tax state assessment refunded to that person by the commission.
  6 21    b.  If a state assessment for direct use is imposed, a person
  6 22 from whom a state assessment for clean water is collected
  6 23 may file an application for a refund with the commission.
  6 24 The application for a refund shall allow the person to elect
  6 25 whether the refund is for the state assessment for direct
  6 26 use or the state assessment for clean water or both. The
  6 27 commission shall not approve an application unless the
  6 28 application indicates the election. The commission shall
  6 29 forward an approved application for a refund of the state
  6 30 assessment to the division of soil conservation and water
  6 31 quality for payment.
  6 32    c.  If a national assessment is imposed and a refund of the
  6 33 national assessment is authorized, a person from whom a state
  6 34 assessment for clean water is collected may file an application
  6 35 for a refund with the Iowa state dairy association.  The
  7  1 application shall to the extent allowed by federal law allow
  7  2 the person to elect whether the refund is for the national
  7  3 assessment or the state assessment for clean water or both.
  7  4 The association shall forward the approved application for a
  7  5 refund of the state assessment for clean water to the division
  7  6 of soil conservation and water quality for payment.
  7  7    Sec. 7.  Section 179.6, Code 2016, is amended to read as
  7  8 follows:
  7  9    179.6  Records of producers, first purchasers.
  7 10    Every producer shipping milk to a first purchaser outside of
  7 11 Iowa who is not by agreement with the commission collecting the
  7 12 tax state assessment for direct use or the state assessment for
  7 13 clean water imposed by this chapter, and every first purchaser
  7 14 within the state, and every producer distributing milk directly
  7 15 to the consumer, shall keep a complete and accurate record of
  7 16 all milk produced or purchased by the person during the period
  7 17 for which an excise tax levy a state assessment is imposed
  7 18 under this chapter. The records shall be in the form and
  7 19 contain the information prescribed by the commission, shall be
  7 20 preserved by the person charged with their making for a period
  7 21 of two years, and shall be offered or submitted for inspection
  7 22 at any time upon written or oral request by the commission or
  7 23 its duly authorized agent or employee.
  7 24    Sec. 8.  Section 179.8, Code 2016, is amended to read as
  7 25 follows:
  7 26    179.8  Payment of expenses ==== limitation.
  7 27    1.  No part of the expense incurred by the commission
  7 28 shall be paid out of moneys in the state treasury except
  7 29 moneys transferred to the commission from the dairy industry
  7 30 fund. Moneys transferred from the fund to the commission, as
  7 31 provided in section 179.5, shall be used for the payment of
  7 32 all salaries, and other expenses necessary, to carry out the
  7 33 provisions of this chapter. However, in no event shall the
  7 34 total expenses exceed the total taxes amount collected from the
  7 35 state assessment for direct use collected and transferred from
  8  1 the fund to the commission.
  8  2    2.  No more than five percent of the excise tax collected
  8  3  moneys collected from the state assessment for direct use and
  8  4 received by the commission pursuant to section 179.5 shall be
  8  5 utilized for administrative expenses of the commission.
  8  6    Sec. 9.  Section 179.9, Code 2016, is amended to read as
  8  7 follows:
  8  8    179.9  Investigations by commission.
  8  9    The commission shall have the power to cause its authorized
  8 10 agents to enter upon the premises of any person charged by this
  8 11 chapter or by agreement with the commission with the collection
  8 12 of the excise tax a state assessment for direct use or a state
  8 13 assessment for clean water imposed by this chapter, and to
  8 14 cause to be examined by any such agent any books, records,
  8 15 documents, or other instruments bearing upon the amount of
  8 16 moneys from such tax state assessment collected or to be
  8 17 collected by such person; provided that the commission has
  8 18 reasonable ground to believe that all moneys from the tax state
  8 19 assessment herein levied has imposed have not been collected,
  8 20 or if it has they have not been fully accounted for as herein
  8 21 provided.
  8 22    Sec. 10.  Section 179.10, Code 2016, is amended to read as
  8 23 follows:
  8 24    179.10  Report.
  8 25    The commission shall each year prepare and submit a report
  8 26 summarizing the activities of the commission under this chapter
  8 27 to the auditor of state and the secretary of agriculture. The
  8 28 report shall show all income, expenses, and other relevant
  8 29 information concerning fees the state assessment for direct
  8 30 use collected and expended under this chapter.  The report
  8 31 shall also show the collection and transfer of moneys received
  8 32 from any state assessment for clean water imposed under this
  8 33 chapter.
  8 34    Sec. 11.  Section 179.13, Code 2016, is amended to read as
  8 35 follows:
  9  1    179.13  Referendum Initial referendum.
  9  2    1.  a.  At a time designated by the commission within
  9  3 eighteen months after termination of the national promotional
  9  4 order made pursuant to the Dairy Product Stabilization
  9  5  federal Act of 1983, the commission shall conduct a an initial
  9  6  referendum under administrative procedures prescribed by the
  9  7 department.
  9  8    b.  Upon signing a statement certifying to the department
  9  9 that the person is a bona fide producer as defined in this
  9 10 chapter, each producer is entitled to one vote in each initial
  9 11  referendum. When the secretary is required to determine the
  9 12 approval or disapproval of producers under this section, the
  9 13 secretary shall consider the approval or disapproval of a
  9 14 cooperative association of producers, engaged in a bona fide
  9 15 manner in marketing milk, as the approval or disapproval of the
  9 16 producers who are members of or contract with the cooperative
  9 17 association of producers. If a cooperative association
  9 18 elects to vote on behalf of its members, the cooperative
  9 19 association shall provide each producer on whose behalf the
  9 20 cooperative association is expressing approval or disapproval
  9 21 with a description of the question presented in the initial
  9 22  referendum together with a statement of the manner in which
  9 23 the cooperative association intends to cast its vote on behalf
  9 24 of the membership. The information shall inform the producer
  9 25 of procedures to follow to cast an individual ballot if the
  9 26 producer chooses to do so within the period of time established
  9 27 by the secretary for casting ballots. The notification shall
  9 28 be made at least thirty days prior to the initial referendum
  9 29 and shall include an official ballot. The ballots shall be
  9 30 tabulated by the secretary and the vote of the cooperative
  9 31 association shall be adjusted to reflect the individual votes.
  9 32    c.  The department shall count and tabulate the ballots
  9 33 filed during the initial referendum within thirty days of the
  9 34 close of the initial referendum. If from the tabulation the
  9 35 department determines that a majority of the total number of
 10  1 producers voting in the initial referendum favors the proposal,
 10  2 the excise tax state assessment for direct use provided for in
 10  3 this chapter shall be continued. The ballots cast pursuant
 10  4 to this section constitute complete and conclusive evidence
 10  5 for use in determinations made by the department under this
 10  6 chapter.
 10  7    2.  The secretary may conduct a special referendum at any
 10  8 time after the Iowa dairy industry commission is reactivated,
 10  9 and shall hold a conduct a special referendum on request upon
 10 10 receiving a petition of a representative group comprising ten
 10 11 percent or more of the number of producers eligible to vote,
 10 12 to determine whether the producers favor the termination or
 10 13  suspension or termination of the excise tax state assessment
 10 14 for direct use. The secretary shall suspend or terminate
 10 15 collection of the excise tax within state assessment for direct
 10 16 use not later than six months after the secretary determines
 10 17 that suspension or termination of the excise tax state
 10 18 assessment is favored by a majority of the producers voting
 10 19 in the special referendum, and shall suspend or terminate the
 10 20 excise tax state assessment in an orderly manner as soon as
 10 21 practicable after the determination.
 10 22    Sec. 12.  NEW SECTION.  179.13A  Referendums and special
 10 23 questions ==== establishment, increase, or termination of a state
 10 24 assessment.
 10 25    1.  a.  If a state assessment for direct use is established,
 10 26 and upon receipt of a petition of producers that otherwise
 10 27 complies with requirements to conduct an initial referendum
 10 28 under section 179.13, subsection 1, the secretary shall conduct
 10 29 a special referendum to determine whether to establish a state
 10 30 assessment for clean water.
 10 31    b.  Upon receipt of a petition of producers that otherwise
 10 32 complies with requirements to conduct an initial referendum
 10 33 under section 179.13, the secretary shall include as part of
 10 34 the initial referendum conducted pursuant to section 179.13,
 10 35 subsection 1, a separate special question whether to establish
 11  1 a state assessment for clean water, if the secretary determines
 11  2 the inclusion of the special question is cost=effective or the
 11  3 petition demands inclusion.
 11  4    c.  The secretary shall conduct the special referendum under
 11  5 this subsection or include the special question as part of an
 11  6 initial or special referendum conducted under section 179.13,
 11  7 subsection 1, in consultation with the commission and which
 11  8 may be based on the same procedures for conducting an initial
 11  9 referendum under section 179.13.
 11 10    d.  If the secretary determines that the establishment of
 11 11 a state assessment for clean water is favored by a majority
 11 12 of the producers voting in a special referendum under this
 11 13 subsection or in an initial referendum conducted under section
 11 14 179.13, subsection 1, that includes a special question as
 11 15 provided in paragraph "b", the state assessment shall commence
 11 16 on a date determined by the secretary after consultation with
 11 17 the commission but not later than six months after the date
 11 18 that the special or initial referendum was conducted.
 11 19    2.  a.  If a national assessment is being collected, and upon
 11 20 receipt of a petition of producers that otherwise complies with
 11 21 requirements to conduct an initial referendum under section
 11 22 179.13, subsection 1, the secretary shall conduct a special
 11 23 referendum to determine whether to establish a state assessment
 11 24 for clean water.
 11 25    b.  Upon receipt of a petition of producers that otherwise
 11 26 complies with requirements to conduct an initial referendum
 11 27 under section 179.13, subsection 1, the secretary shall include
 11 28 as part of the referendum to establish a national assessment,
 11 29 a separate special question whether to establish a state
 11 30 assessment for clean water, if the secretary determines the
 11 31 inclusion of the special question complies with federal law and
 11 32 either is cost=effective or the petition demands inclusion.
 11 33    c.  The secretary shall conduct the special referendum under
 11 34 this subsection or include the special question as part of a
 11 35 referendum to establish a national referendum in consultation
 12  1 with the Iowa state dairy association and which may be based on
 12  2 the same procedures for conducting an initial referendum under
 12  3 section 179.13, subsection 1, or a referendum to establish a
 12  4 national assessment.
 12  5    d.  If the secretary determines that the establishment of a
 12  6 state assessment for clean water is favored by a majority of
 12  7 the producers voting in a special referendum conducted under
 12  8 paragraph "a" or a referendum to establish a national assessment
 12  9 that includes a special question as provided in paragraph "b",
 12 10 the state assessment shall commence on a date determined by
 12 11 the secretary after consultation with the Iowa state dairy
 12 12 association but not later than six months after the date that
 12 13 the special referendum or referendum establishing a national
 12 14 assessment was conducted.
 12 15    3.  a.  If the rate of the national assessment has been
 12 16 increased, and upon receipt of a petition of producers that
 12 17 otherwise complies with requirements to conduct an initial
 12 18 referendum under section 179.13, subsection 1, the secretary
 12 19 shall conduct a special referendum to determine whether to
 12 20 increase the rate of the state assessment for clean water to
 12 21 a rate established by the Iowa state dairy association not to
 12 22 exceed the rate of the national assessment.
 12 23    b.  Upon receipt of a petition of producers that otherwise
 12 24 complies with requirements to conduct an initial referendum
 12 25 under section 179.13, subsection 1, the secretary shall include
 12 26 as part of a referendum to increase the rate of the national
 12 27 assessment, a separate special question whether to increase
 12 28 the rate of the state assessment for clean water at a rate
 12 29 established by the Iowa state dairy association not to exceed
 12 30 the increase in the national assessment, if the secretary
 12 31 determines the inclusion of the special question complies
 12 32 with federal law and is either cost=effective or the petition
 12 33 demands inclusion.
 12 34    c.  The secretary shall conduct the special referendum under
 12 35 this subsection, or include the special question as part of a
 13  1 referendum to increase the national assessment, in consultation
 13  2 with the Iowa state dairy association and which may be based on
 13  3 the same procedures for conducting an initial referendum under
 13  4 section 179.13, subsection 1, or a referendum to increase the
 13  5 rate of the national assessment.
 13  6    d.  If the national assessment is increased, and the
 13  7 secretary determines that an increase in the state assessment
 13  8 for clean water is favored by a majority of the producers
 13  9 voting in a special referendum or referendum to increase
 13 10 the rate of the national assessment, the rate of the state
 13 11 assessment shall be increased on a date determined by the
 13 12 secretary after consultation with the Iowa state dairy
 13 13 association but not later than six months after the date that
 13 14 the special referendum or referendum establishing a national
 13 15 assessment was conducted.  If a special referendum or special
 13 16 question to increase the rate of the state assessment for clean
 13 17 water does not pass, the result of the vote shall not affect
 13 18 the existence or length of the period when the state assessment
 13 19 is in effect.
 13 20    4.  a.  If a state assessment for direct use is imposed,
 13 21 and upon receipt of a petition of producers that otherwise
 13 22 complies with requirements to conduct a special referendum
 13 23 under section 179.13, subsection 2, the secretary shall conduct
 13 24 a special referendum to determine whether to terminate the
 13 25 state assessment for clean water.
 13 26    b.  Upon receipt of a petition of producers that otherwise
 13 27 complies with requirements to conduct a special referendum
 13 28 under section 179.13, subsection 2, the secretary shall include
 13 29 as part of a special referendum to suspend or terminate the
 13 30 state assessment for direct use conducted pursuant to section
 13 31 179.13, subsection 2, a separate special question whether
 13 32 to terminate the state assessment for clean water, if the
 13 33 secretary determines the inclusion of the special question is
 13 34 cost=effective or the petition demands inclusion.
 13 35    c.  The secretary shall conduct the special referendum under
 14  1 this subsection or include the special question as part of a
 14  2 special referendum conducted under section 179.13, subsection
 14  3 2, in consultation with the commission and which may be based
 14  4 on the same procedures for conducting a special referendum
 14  5 under section 179.13, subsection 2.
 14  6    d.  If the secretary determines that the termination of
 14  7 a state assessment for clean water is favored by a majority
 14  8 of the producers voting in a special referendum under this
 14  9 subsection, or a special referendum conducted under section
 14 10 179.13, subsection 2, the state assessment shall terminate on a
 14 11 date determined by the secretary after consultation with the
 14 12 commission but not later than six months after the date that
 14 13 the special or initial referendum was conducted.  The secretary
 14 14 shall terminate the state assessment in an orderly manner as
 14 15 soon as practical.
 14 16    5.  The secretary shall terminate the state assessment for
 14 17 clean water upon determining that the state assessment for
 14 18 direct use and the national assessment are terminated.  The
 14 19 secretary shall terminate the state assessment for clean water
 14 20 in an orderly manner as soon as practical.
 14 21                           DIVISION II
 14 22  IOWA BEEF CATTLE PRODUCERS ASSOCIATION ==== EXECUTIVE COMMITTEE
 14 23    Sec. 13.  Section 181.1, subsection 3, Code 2016, is amended
 14 24 by striking the subsection and inserting in lieu thereof the
 14 25 following:
 14 26    3.  "Executive committee" means the executive committee of
 14 27 the association as created in section 181.3.
 14 28    Sec. 14.  Section 181.1, subsection 6, paragraph b, Code
 14 29 2016, is amended to read as follows:
 14 30    b.  The person acquired ownership of cattle to facilitate
 14 31 the transfer of ownership of such cattle from the seller to a
 14 32 third party; resold such cattle no later than ten days from the
 14 33 date on which the person acquired ownership; and certified as
 14 34 required by rules adopted by the council executive committee.
 14 35    Sec. 15.  Section 181.1, subsection 10, Code 2016, is amended
 15  1 to read as follows:
 15  2    10.  "State assessment" means an excise tax on the sale of
 15  3 cattle imposed pursuant to this chapter which may include a
 15  4 state assessment for direct use and a state assessment for
 15  5 clean water.
 15  6    Sec. 16.  Section 181.2, Code 2016, is amended to read as
 15  7 follows:
 15  8    181.2  Duties and objects of association.
 15  9    The Iowa beef cattle producers association shall do all of
 15 10 the following:
 15 11    1.  Aid in the marketing and promotion of the cattle industry
 15 12 of the state.
 15 13    2.  Provide for practical and scientific instruction in
 15 14 the breeding and raising of cattle Conduct research on beef
 15 15 production and evaluate Iowa beef production needs.
 15 16    3.  Make demonstrations in the feeding of cattle and publish
 15 17 suggestions beneficial to such business Provide educational
 15 18 materials and opportunities to consumers, producers, and youth
 15 19 regarding the benefits of Iowa's beef cattle industry.
 15 20    4.  Aid and promote cattle feeding contests, shows, and
 15 21 sales.
 15 22    5.  4.  Prepare an annual report of the proceedings and
 15 23 expenditures of the council executive committee as provided in
 15 24 section 181.18B.
 15 25    5.  Cooperate with the division of soil conservation and
 15 26 water quality of the department of agriculture and land
 15 27 stewardship in transferring moneys collected from the state
 15 28 assessment for clean water to the clean water fund created
 15 29 in section 466B.51 and for being reimbursed for reasonable
 15 30 expenses incurred in conducting an initial or special
 15 31 referendum to establish, continue, or terminate a state
 15 32 assessment for clean water.
 15 33    Sec. 17.  Section 181.3, Code 2016, is amended to read as
 15 34 follows:
 15 35    181.3  Iowa beef industry council Executive committee ====
 16  1 creation and operation.
 16  2    1.  An Iowa beef industry council executive committee of the
 16  3 Iowa beef cattle producers association is created. The council
 16  4  executive committee consists of eight ten members, including
 16  5 all of the following:
 16  6    a.  Five producers elected by the Iowa beef cattle producers
 16  7 association pursuant to section 181.6A.
 16  8    b.  Two producers appointed by the Iowa cattlemen's
 16  9 association.
 16 10    c.  One livestock market representative appointed pursuant to
 16 11 subsection 2.
 16 12    c.d.  The secretary of agriculture or a designee, who shall
 16 13 serve as a voting an ex officio, voting member.
 16 14    d.e.  The dean of the college of agriculture and life
 16 15 sciences of Iowa state university of science and technology or
 16 16 a designee, who shall serve as a voting an ex officio, voting
 16 17  member.
 16 18    2.  The Iowa livestock auction market association shall
 16 19 nominate two livestock market representatives. The secretary
 16 20 of agriculture shall appoint one of the nominees or another
 16 21 livestock market representative of the secretary's choice, who
 16 22 shall serve at the pleasure of the secretary.
 16 23    3.  The council executive committee shall elect a
 16 24 chairperson, secretary, and other officers it deems necessary.
 16 25    4.  a.  A member who is a producer or livestock market
 16 26 representative described in subsection 1, paragraphs "a"
 16 27  through "c", shall serve a three=year term.  The member shall
 16 28 not serve more than two consecutive full terms.
 16 29    b.  Except for an ex officio members member, vacancies a
 16 30 vacancy in the council executive committee resulting from
 16 31 death, inability or refusal to serve, or failure to meet the
 16 32 qualifications of this chapter shall be filled by the council
 16 33  executive committee. If the council executive committee fails
 16 34 to fill a vacancy, the secretary shall fill it. Vacancy
 16 35 appointments A vacancy appointment shall be filled only for the
 17  1 remainder of the unexpired term.
 17  2    Sec. 18.  Section 181.4, Code 2016, is amended to read as
 17  3 follows:
 17  4    181.4  Employees of council Executive committee ==== employees.
 17  5    The council executive committee may employ two or more
 17  6 competent persons who shall devote their entire time, under
 17  7 the direction of the council executive committee, in carrying
 17  8 out the provisions of this chapter. The salary of persons so
 17  9 employed shall be set by the council executive committee, and
 17 10 the persons shall hold office at the pleasure of the council
 17 11  executive committee.
 17 12    Sec. 19.  Section 181.6A, Code 2016, is amended to read as
 17 13 follows:
 17 14    181.6A  Election of council Executive committee ==== election.
 17 15    1.  The Iowa beef cattle producers association shall hold an
 17 16 annual meeting of producers. An election shall be held at the
 17 17 annual meeting, as necessary, for election of producers to the
 17 18 council executive committee.
 17 19    2.  Prior to the annual meeting, the association shall
 17 20 appoint a nominating committee. At least sixty days prior to
 17 21 the annual meeting of the association, the nominating committee
 17 22 shall nominate two producers as candidates for each position
 17 23 on the council executive committee for which an election is to
 17 24 be held. At least forty=five days prior to the annual meeting
 17 25 of the association, additional candidates may be nominated by
 17 26 a written petition of fifty producers. Procedures governing
 17 27 the place of filing and the contents of the petition shall be
 17 28 promulgated and publicized by the council executive committee.
 17 29    3.  Producers attending the annual meeting of the
 17 30 association may vote for one nominee for each position on the
 17 31 council executive committee for which an election is held.
 17 32 Producers not attending the annual meeting of the association
 17 33 may vote by absentee ballot if the ballot is requested and
 17 34 mailed, with proper postage, to the council executive committee
 17 35  prior to the annual meeting of the association. For each
 18  1 position for which an election is held, the candidate receiving
 18  2 the highest number of votes shall be elected.
 18  3    4.  Notice of election for council executive committee
 18  4  membership shall be given by the council executive committee by
 18  5 publication in a newspaper of general circulation in the state
 18  6 and in any other reasonable manner as determined by the council
 18  7  executive committee, and shall set forth the date, time, and
 18  8 place of the annual meeting of the association. The council
 18  9  executive committee shall administer the elections, with the
 18 10 assistance of the secretary.
 18 11    Sec. 20.  Section 181.7, Code 2016, is amended to read as
 18 12 follows:
 18 13    181.7  Research Executive committee ==== research and education
 18 14 programs.
 18 15    The council executive committee shall initiate, administer,
 18 16 or participate in research and education programs directed
 18 17 toward the better and more efficient production, promotion, and
 18 18 utilization of cattle and the marketing of products made from
 18 19 cattle. The council executive committee shall provide for the
 18 20 methods and means that it determines are necessary to further
 18 21 the purposes of this section, including but not limited to any
 18 22 of the following:
 18 23    1.  Providing public relations and other promotion
 18 24 techniques for the maintenance of present markets.
 18 25    2.  Making donations to nonprofit organizations furthering
 18 26 the purposes of this section.
 18 27    3.  Assisting in the development of new or larger domestic
 18 28 markets for products made from cattle.
 18 29    4.  Assisting in the development of new or larger foreign
 18 30 markets for cattle and products made from cattle.
 18 31    Sec. 21.  Section 181.7A, Code 2016, is amended to read as
 18 32 follows:
 18 33    181.7A  Commencement of federal assessment ==== suspension and
 18 34 recommencement of state assessment  ==== rate.
 18 35    1.  Prior to the commencement of the collection of the
 19  1 federal assessment, the council executive committee may seek
 19  2 certification as a qualified state beef council within the
 19  3 meaning of the federal Act.
 19  4    2.  The council executive committee shall suspend the
 19  5 state assessment for direct use upon collection of the
 19  6 federal assessment. The state assessment for direct use shall
 19  7 recommence upon the earlier of the following:
 19  8    a.  The noncollection of the federal assessment. The
 19  9 recommenced state assessment for direct use shall be imposed
 19 10 for a four=year period. Its effective date shall be the first
 19 11 date for which the federal assessment is not collected.
 19 12    b.  The passage of a special referendum pursuant to section
 19 13 181.19 regardless of whether a federal assessment is being
 19 14 collected.
 19 15    3.  The rate of the recommenced state assessment for direct
 19 16 use shall be the same as the rate that was last in effect under
 19 17 section 181.19 immediately prior to the suspension of the state
 19 18 assessment.
 19 19    4.  The state assessment for clean water shall continue to be
 19 20 imposed during any period of suspension of the state assessment
 19 21 for direct use so long as the state assessment for clean water
 19 22 is not terminated pursuant to section 181.19A.
 19 23    Sec. 22.  Section 181.8, Code 2016, is amended to read as
 19 24 follows:
 19 25    181.8  Entering Executive committee ==== entering premises ====
 19 26 examining records.
 19 27    The council executive committee may authorize its agents to
 19 28 enter at a reasonable time upon the premises of any purchaser
 19 29 charged by this chapter with remitting the state assessment for
 19 30 direct use to the council executive committee, and to examine
 19 31 records and other instruments relating to the collection of the
 19 32 state assessment. However, the council executive committee
 19 33  must first have reasonable grounds to believe that the state
 19 34 assessment for direct use has not been remitted or fully
 19 35 accounted for.
 20  1 The council may enter into arrangements with persons
 20  2 purchasing cattle outside of this state for remitting the state
 20  3 assessment by such purchasers.
 20  4    Sec. 23.  Section 181.11, Code 2016, is amended to read as
 20  5 follows:
 20  6    181.11  Collection of state assessment.
 20  7    1.  A state assessment for direct use or a state assessment
 20  8 for clean water imposed as provided in this chapter shall be
 20  9 levied and collected from the purchaser on each sale of cattle
 20 10 at a rate provided in this chapter. The state assessment shall
 20 11 be imposed on any person selling cattle and shall be deducted
 20 12 by the purchaser from the price paid to the seller. The
 20 13 purchaser, at the time of the sale, shall make and deliver to
 20 14 the seller a separate invoice for each sale showing the names
 20 15 and addresses of the seller and the purchaser, the number of
 20 16 cattle sold, and the date of sale. The purchaser shall forward
 20 17 the state assessment to the council executive committee at a
 20 18 time prescribed by the council executive committee, but not
 20 19 later than the last day of the month following the end of the
 20 20 prior reporting period in which the cattle are sold.
 20 21    2.  The executive committee may enter into arrangements with
 20 22 persons purchasing cattle outside of this state for remitting
 20 23 the state assessment for direct use or the state assessment for
 20 24 clean water by such purchasers.
 20 25    Sec. 24.  Section 181.12, Code 2016, is amended to read as
 20 26 follows:
 20 27    181.12  Remission of state assessment on application.
 20 28    1.  a.  A person from whom a state assessment for direct
 20 29 use is collected may, by written application filed with the
 20 30 council executive committee within sixty ninety days after
 20 31 its collection, have the amount remitted to the person by the
 20 32 council executive committee.
 20 33    b.  A person from whom a state assessment for clean water is
 20 34 collected may, by written application filed with the executive
 20 35 committee as provided in paragraph "a", have the amount
 21  1 remitted to the person by the division of soil conservation
 21  2 and water quality of the department of agriculture and land
 21  3 stewardship.  Within ninety days after its collection, the
 21  4 executive committee shall transmit any approved application to
 21  5 the division for a refund payment.
 21  6    2.  The information described in subsection 1 that the
 21  7 state assessment is refundable and the address of the council
 21  8  executive committee to which application for a refund may be
 21  9 made shall appear on the invoice of sale form supplied by the
 21 10 purchaser to the producer near the area on the form which shows
 21 11 the amount of the state assessment paid.
 21 12    3.  The council executive committee shall furnish uniform
 21 13 application for refund forms and envelopes properly addressed
 21 14 to the council to each purchaser charged by this chapter with
 21 15 remitting the state assessment in sufficient number to make the
 21 16 refund forms and envelopes readily available to all producers.
 21 17 A purchaser charged by this chapter with remitting the state
 21 18 assessment shall display the application for refund forms and
 21 19 envelopes in a prominent position in its place of business and
 21 20  make them the forms readily available to all producers.  The
 21 21 form shall allow the applicant to elect whether the refund is
 21 22 for the state assessment for direct use or the state assessment
 21 23 for clean water or both.
 21 24    Sec. 25.  Section 181.13, Code 2016, is amended to read as
 21 25 follows:
 21 26    181.13  Administration of moneys originating from state
 21 27 assessment ==== appropriation.
 21 28    1.  a.  All moneys, other than moneys from the state
 21 29 assessments assessment for clean water imposed under this
 21 30 chapter shall be paid to and collected by the council executive
 21 31 committee and deposited with the treasurer of state in a
 21 32 separate cattle promotion fund which shall be created by
 21 33 the treasurer of state. The department of administrative
 21 34 services shall transfer moneys from the fund to the council
 21 35  executive committee for deposit into an account established
 22  1 by the council executive committee in a qualified financial
 22  2 institution. The department shall transfer the moneys as
 22  3 provided in a resolution adopted by the council executive
 22  4 committee. However, the department is only required to
 22  5 transfer moneys once during each day and only during hours when
 22  6 the offices of the state are open. From the moneys, other than
 22  7 moneys from the state assessment for clean water, collected,
 22  8 deposited, and transferred to the council executive committee,
 22  9 in accordance with the provisions of this chapter, the council
 22 10  executive committee shall first pay the costs of referendums
 22 11 held pursuant to this chapter, the costs of collection of such
 22 12 state assessments, and the expenses of its agents. At least
 22 13 ten percent of the remaining moneys shall be remitted to the
 22 14 association in proportions determined by the council executive
 22 15 committee, for use in a manner not inconsistent with section
 22 16 181.7. The remaining moneys, with approval of a majority of
 22 17 the council executive committee, shall be expended as the
 22 18 council executive committee finds necessary to carry out the
 22 19 provisions and purposes of this chapter. However, in no event
 22 20 shall the total expenses exceed the total amount transferred
 22 21 from the fund for use by the council executive committee.
 22 22    2.  b.  All moneys deposited in the cattle promotion fund
 22 23 and transferred to the council executive committee pursuant
 22 24 to this section are appropriated and shall be used for
 22 25 the administration of this chapter and for the payment of
 22 26 claims based upon obligations incurred in the performance of
 22 27 activities and functions set forth in this chapter.
 22 28    3.  c.  If the state assessment for direct use is suspended
 22 29 as provided in section 181.7A or a continuance special
 22 30  referendum to continue the state assessment for direct use
 22 31  fails to pass as provided in section 181.19A, moneys remaining
 22 32 in the cattle promotion fund and transferred to the council
 22 33  executive committee shall continue to be transferred and
 22 34 expended in accordance with the provisions of this chapter
 22 35 until exhausted.
 23  1    2.  a.  All moneys collected from the state assessment for
 23  2 clean water imposed under this chapter shall be paid to and
 23  3 collected by the executive committee and may be deposited in a
 23  4 qualified financial institution until transferred to the clean
 23  5 water fund created in section 466B.51.  If the state assessment
 23  6 for clean water is terminated as provided in section 181.19A,
 23  7 the remaining moneys collected from that state assessment shall
 23  8 be immediately transferred to the clean water fund.
 23  9    b.  Except as otherwise expressly provided in this chapter,
 23 10 moneys collected from the state assessment for clean water
 23 11 shall not be used for any purpose other than to be transferred
 23 12 to the clean water fund created in section 466B.51.
 23 13    Sec. 26.  Section 181.17, Code 2016, is amended to read as
 23 14 follows:
 23 15    181.17  Producers not members.
 23 16    A producer who is not a member of the Iowa beef cattle
 23 17 producers association shall be entitled to vote in elections
 23 18 of persons to be members of the council executive committee in
 23 19 the same manner as if the producer were a member. The members
 23 20 elected to the council executive committee shall elect from
 23 21 their number the officers referred to in section 181.1A.
 23 22    Sec. 27.  Section 181.18, Code 2016, is amended to read as
 23 23 follows:
 23 24    181.18  Rules.
 23 25    All rules of the council heretofore or hereinafter
 23 26 promulgated adopted by the executive committee shall be subject
 23 27 to the provisions of chapter 17A.
 23 28    Sec. 28.  Section 181.18B, Code 2016, is amended to read as
 23 29 follows:
 23 30    181.18B  Report.
 23 31    Each year, the council executive committee shall prepare
 23 32 and submit a report summarizing the activities of the council
 23 33  executive committee under this chapter to the auditor of state
 23 34 and the secretary of agriculture. The report shall show all
 23 35 income, expenses, and other relevant information concerning
 24  1 fees collected and expended under this chapter.
 24  2    Sec. 29.  Section 181.19, Code 2016, is amended to read as
 24  3 follows:
 24  4    181.19  Initial and special referendums ==== rates.
 24  5    1.  The secretary shall, upon the petition of five hundred
 24  6 producers, conduct an initial referendum to determine whether
 24  7 a state assessment for direct use is to be established. If
 24  8 established, the state assessment for direct use shall be
 24  9  imposed, at a rate established by the council of executive
 24 10 committee not to exceed fifty cents one dollar per head on all
 24 11 cattle sold for any purpose.
 24 12    2.  The secretary shall, upon the petition of five hundred
 24 13 producers, conduct a special referendum to do any of the
 24 14 following:
 24 15    a.  Determine whether a state assessment for direct use
 24 16  already imposed shall be increased to a rate, established by
 24 17 the council executive committee, not to exceed one dollar per
 24 18 head on all cattle sold for any purpose.
 24 19    b.  Determine whether a state assessment for direct use
 24 20  suspended pursuant to section 181.7A is to be in addition to a
 24 21 federal assessment. The state assessment for direct use shall
 24 22 be imposed at a rate of fifty cents one dollar per head on all
 24 23 cattle sold for whatever purpose.
 24 24    3.a.  Upon receipt of a petition that otherwise complies
 24 25 with the requirements of subsection 1, the secretary shall
 24 26 conduct a special referendum to establish a state assessment
 24 27 for clean water to be imposed in the same manner as a state
 24 28 assessment for direct use.
 24 29    b.  The rate of the state assessment for clean water shall
 24 30 be established by the executive committee not to exceed the
 24 31 rate of the state assessment for direct use in effect on the
 24 32 date that the special referendum to impose a state assessment
 24 33 for clean water passes.  However, if a federal assessment is
 24 34 imposed, the rate of the state assessment for clean water shall
 24 35 be established by the executive committee not to exceed the
 25  1 rate of the federal assessment. If a state assessment for
 25  2 direct use and a federal assessment are both being imposed,
 25  3 the rate of the state assessment for clean water shall be
 25  4 established by the executive committee not to exceed the rate
 25  5 of the state assessment for direct use plus the rate of the
 25  6 federal assessment.
 25  7    4.  Upon receipt of a petition that otherwise complies with
 25  8 the requirements of subsection 1, the secretary shall include
 25  9 as part of the initial referendum a separate special question
 25 10 whether to establish a state assessment for clean water as
 25 11 described in subsection 3, if the secretary determines the
 25 12 inclusion of the special question is cost=effective or the
 25 13 petition demands inclusion.
 25 14    5.  a.  Upon receipt of a petition that otherwise complies
 25 15 with the requirements of subsection 2, the secretary shall
 25 16 conduct a special referendum to change the rate of the state
 25 17 assessment for clean water to be established by the executive
 25 18 committee not to exceed the rate of the state assessment
 25 19 for direct use and any federal assessment as described in
 25 20 subsection 2.
 25 21    b.  Upon receipt of a petition that otherwise complies with
 25 22 the requirements of subsection 2, the secretary shall include
 25 23 as part of the special referendum conducted under subsection
 25 24 2 a separate special question whether to change the rate of
 25 25 the state assessment for clean water to be established by
 25 26 the executive committee not to exceed the rate of the state
 25 27 assessment for direct use and any federal assessment as
 25 28 described in subsection 2, if the secretary determines the
 25 29 inclusion of the special question is cost=effective or the
 25 30 petition demands inclusion.
 25 31    6.  a.  If a an initial referendum or a special referendum
 25 32 described in this section passes, the secretary shall establish
 25 33 an effective date to commence the state assessment for direct
 25 34 use or the change in the rate of the state assessment for
 25 35 direct use. However, the state assessment or the change in the
 26  1 rate of the state assessment must be commenced within ninety
 26  2 days from the date that the secretary determines that the
 26  3 referendum has passed.
 26  4    b.  If a state assessment for clean water is established
 26  5 or the rate of the state assessment for clean water changes
 26  6 under this section, the secretary shall establish an effective
 26  7 date to commence the state assessment or change the rate of the
 26  8 state assessment in the same manner as provided in paragraph
 26  9 "a".
 26 10    4.7.  a.  If a special referendum to increase the rate of
 26 11 the state assessment for direct use does not pass, the result
 26 12 of the special referendum shall not affect the existence or
 26 13 length of the state assessment that is in effect on the date
 26 14 that the special referendum was conducted.
 26 15    b.  If a special referendum, or a special question that is
 26 16 part of a special referendum conducted under this section, to
 26 17 change the rate of the state assessment for clean water does
 26 18 not pass, the result of the vote shall not affect the existence
 26 19 or period that the state assessment is in effect. 
 26 20    8.  A state assessment for clean water is terminated on the
 26 21 date that the state assessment for direct use is terminated,
 26 22 unless a federal assessment is imposed.
 26 23    Sec. 30.  Section 181.19A, Code 2016, is amended to read as
 26 24 follows:
 26 25    181.19A  Continuance referendum Special referendums ====
 26 26 continuance or termination.
 26 27    1.  The secretary shall, upon the receipt of a petition
 26 28 of producers, conduct a continuance special referendum to
 26 29 determine whether a state assessment for direct use established
 26 30 in section 181.19 should be renewed continued. The secretary
 26 31 must receive the petition not less than one hundred fifty and
 26 32 not more than two hundred forty days before the four=year
 26 33 anniversary of a state assessment's the effective date of
 26 34 the state assessment for direct use. The petition must be
 26 35 signed within that period by a number of producers equal to
 27  1 or greater than two percent of the number of producers in
 27  2 this state reported in the most recent United States census
 27  3 of agriculture, requesting a special referendum to determine
 27  4 whether to continue the state assessment for direct use.
 27  5 The special referendum shall be conducted not earlier than
 27  6 thirty days before the four=year anniversary date of the state
 27  7 assessment for direct use.
 27  8    2.  a.  The secretary shall, upon receipt of a petition
 27  9 of producers otherwise complying with the requirements of
 27 10 subsection 1, conduct a special referendum to determine whether
 27 11 the state assessment for clean water established in section
 27 12 181.19 should be continued.  The special referendum shall be
 27 13 conducted in the same manner as a special referendum conducted
 27 14 under subsection 1.
 27 15    b.  The secretary shall, upon receipt of a petition complying
 27 16 with the requirements of subsection 1, include as part of a
 27 17 special referendum provided in subsection 1 a separate special
 27 18 question whether a state assessment for clean water should be
 27 19 continued, if the secretary determines the inclusion of the
 27 20 special question is cost=effective or the petition demands
 27 21 inclusion.
 27 22    2.3.  a.  If the secretary determines that a continuance
 27 23  special referendum has passed under subsection 1, the state
 27 24 assessment for direct use shall continue in effect for four
 27 25 additional years from the anniversary of its effective date.
 27 26    b.  If the secretary determines that a special referendum
 27 27 or special question to continue the state assessment for clean
 27 28 water has passed under subsection 2, the state assessment shall
 27 29 be in effect until the anniversary of the effective date of the
 27 30 state assessment for direct use described in paragraph "a".
 27 31    3.4.  a.  If the secretary determines that the a special
 27 32  referendum to continue the state assessment for direct use has
 27 33 not passed, the secretary and the council executive committee
 27 34  shall terminate the state assessment in an orderly manner as
 27 35 soon as practicable after the determination.
 28  1    b.  If the secretary determines that a special referendum to
 28  2 continue the state assessment for clean water has not passed,
 28  3 the secretary and the executive committee shall terminate the
 28  4 state assessment in the same manner as described in paragraph
 28  5 "a".
 28  6    c.  A state assessment for clean water is terminated on the
 28  7 date that the state assessment for direct use is terminated,
 28  8 unless a federal assessment is imposed.
 28  9    5.  a.  Another If the secretary determines that a special
 28 10 referendum to continue the state assessment for direct use has
 28 11 not passed, another initial referendum conducted under section
 28 12 181.19 to determine whether to establish a state assessment
 28 13  shall not be held conducted for at least one hundred eighty
 28 14 days from the date that the state assessment is terminated.
 28 15    b.  If the secretary determines that a special referendum to
 28 16 continue the state assessment for clean water has not passed,
 28 17 another special referendum to establish the state assessment
 28 18 or another initial or special referendum that includes a
 28 19 special question to establish the state assessment shall not be
 28 20 conducted for at least one hundred eighty days from the date
 28 21 that the state assessment was terminated.
 28 22    4.  6.  If no a valid petition for a continuance referendum
 28 23 provided in this section is not received by the secretary
 28 24 within the time period provided in this section, the state
 28 25 assessment for direct use or the state assessment for clean
 28 26 water shall continue in effect for four additional years from
 28 27 the anniversary of its the effective date of the initial
 28 28 referendum establishing the state assessment for direct use.
 28 29    Sec. 31.  REPEAL.  2004 Iowa Acts, chapter 1037, section 17,
 28 30 is repealed.
 28 31    Sec. 32.  REPEAL.  2016 Iowa Acts, House File 2269, is
 28 32 repealed.
 28 33    Sec. 33.  TRANSITION ==== APPOINTMENT AND TERMS OF EXECUTIVE
 28 34 COMMITTEE MEMBERS.
 28 35    1.  This Act's amendments changing the name of the "Iowa beef
 29  1 industry council" to the "executive committee" of the Iowa beef
 29  2 cattle producers association shall not affect the appointment
 29  3 or term of office of a member who served on the Iowa beef
 29  4 industry council immediately prior to the effective date of
 29  5 this Act.  That member shall continue to serve on the executive
 29  6 committee until the member's term expires.
 29  7    2.  The executive committee of the Iowa beef cattle producers
 29  8 association created in section 181.3 as amended in this
 29  9 Act may establish terms for any number of the five members
 29 10 first elected or reelected by the Iowa beef cattle producers
 29 11 association under that section on or after the effective
 29 12 date of this Act to ensure elected members serve staggered
 29 13 terms.  The executive committee may also establish initial
 29 14 terms for the two new members appointed by the Iowa cattlemen's
 29 15 association under that section as amended by this Act to
 29 16 ensure appointed members serve staggered terms.  The executive
 29 17 committee shall operate under 101 IAC 1.5 and 1.6 until the
 29 18 appointment of the new members.
 29 19    Sec. 34.  TRANSITION ==== ADMINISTRATIVE RULES AND OTHER
 29 20 ACTIONS AND DOCUMENTS.  Any rule, form, order, or directive
 29 21 promulgated by the Iowa beef industry council created in
 29 22 section 181.3, in force and effect immediately prior to the
 29 23 effective date of this Act, shall continue in full force and
 29 24 effect until the earlier of the following:
 29 25    1.  It is amended, rescinded, or supplemented by the
 29 26 affirmative action of the executive committee of the Iowa beef
 29 27 cattle producers association created in section 181.3, as
 29 28 amended in this Act.
 29 29    2.  It expires by its own terms.
 29 30                          DIVISION III
 29 31               IOWA SHEEP AND WOOL PROMOTION BOARD
 29 32    Sec. 35.  Section 182.1, subsection 1, Code 2016, is amended
 29 33 to read as follows:
 29 34    1.  "Assessment" means an excise tax on the sale of sheep
 29 35 or wool as provided in this chapter which may include an
 30  1 assessment for direct use and a state assessment for clean
 30  2 water.
 30  3    Sec. 36.  Section 182.1, Code 2016, is amended by adding the
 30  4 following new subsection:
 30  5    NEW SUBSECTION.  6A.  "Qualified financial institution" means
 30  6 a bank or credit union as defined in section 12C.1.
 30  7    Sec. 37.  Section 182.2, Code 2016, is amended to read as
 30  8 follows:
 30  9    182.2  Petition for initial referendum election.
 30 10    Upon receipt of a petition signed by at least fifty producers
 30 11 in each district requesting a an initial referendum by election
 30 12  to determine whether to establish the board and to impose an
 30 13 assessment for direct use, the secretary shall call a the
 30 14 initial referendum to be conducted within sixty days following
 30 15 receipt of the petition.
 30 16    Sec. 38.  Section 182.3, Code 2016, is amended to read as
 30 17 follows:
 30 18    182.3  Notice of initial referendum.
 30 19    The secretary shall give notice of the initial referendum
 30 20 on the question of whether to establish an Iowa sheep and wool
 30 21 promotion board and to impose the an assessment for direct use
 30 22  by publishing the notice for a period of not less than five
 30 23 days in at least one newspaper of general circulation in the
 30 24 state. The notice shall state the voting places, period of
 30 25 time for voting, and other information deemed necessary by the
 30 26 secretary.
 30 27    A An initial referendum shall not be commenced until five
 30 28 days after the last date of publication.
 30 29    Sec. 39.  Section 182.4, Code 2016, is amended to read as
 30 30 follows:
 30 31    182.4  Establishment of sheep and wool promotion board ====
 30 32 assessment assessments ==== termination.
 30 33    1.  Each producer who signs a statement certifying that
 30 34 the producer is a bona fide producer is entitled to one vote
 30 35 in an initial referendum conducted under this section. At
 31  1 the close of the initial referendum, the secretary shall
 31  2 count and tabulate the ballots cast. If a majority of voters
 31  3 favor establishing an Iowa sheep and wool promotion board and
 31  4 imposing establishing an assessment for direct use, an Iowa
 31  5 sheep and wool promotion the board and assessment shall be
 31  6 established. The assessment for direct use shall be imposed
 31  7 commencing not more than sixty days following the initial
 31  8  referendum as determined by the Iowa sheep and wool promotion
 31  9  board, and shall continue until the board and assessment for
 31 10 direct use are terminated by a special referendum as provided
 31 11 in conducted pursuant to subsection 2 4.
 31 12    2.  a.  If the board is in existence, and upon receipt of
 31 13 a petition signed by at least twenty=five producers in each
 31 14 district requesting a special referendum to determine whether
 31 15 to establish a state assessment for clean water, the secretary
 31 16 shall call the special referendum to be conducted in the same
 31 17 manner as provided in subsection 1.
 31 18    b.  If a board is not in existence, and upon receipt of a
 31 19 petition that complies with the requirements of paragraph "a"
 31 20  the secretary shall include as part of the initial referendum
 31 21 a separate special question whether to establish a state
 31 22 assessment for clean water, if the secretary determines the
 31 23 inclusion of the special question is cost=effective or the
 31 24 petition demands inclusion.
 31 25    c.  If a majority of voters favor establishing the state
 31 26 assessment for clean water, the state assessment shall be
 31 27 imposed in the same manner and for the same period as the
 31 28 assessment for direct use described in subsection 1.
 31 29    3.  a.  If a majority of the voters do not favor establishing
 31 30 an Iowa sheep and wool promotion a board and imposing the an
 31 31  assessment for direct use, the board and an assessment shall
 31 32 not be established, and the assessment shall not be imposed
 31 33 and the board shall not be established until another initial
 31 34  referendum is held conducted under this chapter and a majority
 31 35 of the voters favor establishing a board and imposing the an
 32  1  assessment. If a an initial referendum fails, another initial
 32  2  referendum shall not be held within conducted for at least
 32  3  one hundred eighty days from the date of the last initial
 32  4 referendum.
 32  5    b.  If a majority of the voters do not favor establishing a
 32  6 state assessment for clean water, the state assessment shall
 32  7 not be established until another special referendum, or another
 32  8 special question that is part of an initial referendum, is
 32  9 conducted under this chapter and a majority of the voters favor
 32 10 establishing the state assessment.  If a special referendum or
 32 11 special question fails, another special referendum or initial
 32 12 referendum which includes a special question shall not be
 32 13 conducted within one hundred eighty days from the date that
 32 14 the last such special referendum or initial referendum was
 32 15 conducted.
 32 16    2.  4.  Upon receipt of a petition signed by at least
 32 17 twenty=five producers in each district requesting a special
 32 18  referendum election to determine whether to terminate the
 32 19 establishment of the Iowa sheep and wool promotion board and
 32 20 to terminate the imposition of the and the assessment for
 32 21 direct use, the secretary shall call a special referendum to
 32 22 be conducted within sixty days following the receipt of the
 32 23 petition. The petitioners shall guarantee the payment of the
 32 24 costs of a the special referendum held conducted under this
 32 25 subsection. If the majority of the voters of a voting at the
 32 26 special referendum do not favor termination, an additional
 32 27 special referendum may be held conducted when the secretary
 32 28 receives a petition signed by at least twenty=five producers in
 32 29 each district. However, the additional referendum shall not be
 32 30 held within conducted for at least one hundred eighty days from
 32 31 the date of the last such special referendum.
 32 32    5.  a.  Upon receipt of a petition that otherwise complies
 32 33 with the requirements of subsection 4 requesting a special
 32 34 referendum election to determine whether to terminate the
 32 35 establishment of the state assessment for clean water,  the
 33  1 secretary shall call a special referendum to be conducted in
 33  2 the same manner as provided in subsection 4.
 33  3    b.  Upon receipt of a petition that otherwise complies
 33  4 with the requirements of subsection 4, the secretary shall
 33  5 include as part of the special referendum conducted under that
 33  6 subsection a separate special question whether to terminate the
 33  7 state assessment for clean water, if the secretary determines
 33  8 the inclusion of the special question is cost=effective or the
 33  9 petition demands inclusion.
 33 10    c.  The petitioners shall guarantee the payment of the costs
 33 11 of the special referendum conducted under this subsection.
 33 12    d.  If the majority of the voters of a special referendum
 33 13 conducted under this subsection do not favor termination,
 33 14 an additional special referendum may be conducted when
 33 15 the secretary receives a petition complying with the same
 33 16 requirements as described in this subsection. However, the
 33 17 additional special referendum shall not be conducted for at
 33 18 least one hundred eighty days from the date of the last such
 33 19 special referendum.
 33 20    6.  A state assessment for clean water is terminated on the
 33 21 date that the assessment for direct use is terminated. The
 33 22 secretary shall terminate the state assessment for clean water
 33 23 in an orderly manner as soon as practical.
 33 24    Sec. 40.  Section 182.11, Code 2016, is amended to read as
 33 25 follows:
 33 26    182.11  Purposes of board.
 33 27    1.  The purposes of the board shall be to:
 33 28    1.  a.  Enter into contracts or agreements with or make
 33 29 grants to recognized and qualified agencies, individuals,
 33 30 or organizations for the development and carrying out of
 33 31 research and education programs directed toward better and more
 33 32 efficient production, marketing, and utilization of sheep and
 33 33 wool and their products.
 33 34    2.  b.  Provide methods and means, including, but not limited
 33 35 to, public relations and other promotion techniques for the
 34  1 maintenance of present markets.
 34  2    3.  c.  Assist in development of new or larger markets, both
 34  3 domestic and foreign, for sheep and wool and their products.
 34  4    2.  The board shall cooperate with the division of soil
 34  5 conservation and water quality of the department of agriculture
 34  6 and land stewardship in doing all of the following:
 34  7    a.  Transferring moneys collected from the state assessment
 34  8 for clean water to the clean water fund created in section
 34  9 466B.51.
 34 10    b.  Being reimbursed for reasonable expenses incurred in
 34 11 conducting an initial or special referendum to establish,
 34 12 continue, or terminate a state assessment for clean water.
 34 13    Sec. 41.  Section 182.13, Code 2016, is amended to read as
 34 14 follows:
 34 15    182.13  Compensation ==== meetings.
 34 16    Members of the board may receive payment for their actual
 34 17 expenses and travel in performing official board functions.
 34 18 Payment shall be made from amounts collected from the
 34 19 assessment for direct use. No A member of the board shall not
 34 20  be a salaried employee of the board or any organization or
 34 21 agency receiving funds moneys collected from the board. The
 34 22 board shall meet at least once every three months, and at other
 34 23 times it deems necessary.
 34 24    Sec. 42.  Section 182.13B, Code 2016, is amended to read as
 34 25 follows:
 34 26    182.13B  Assessment rate rates.
 34 27    1.  a.  If a majority of voters voting at a an initial
 34 28  referendum conducted pursuant to section 182.4 approve the
 34 29 establishment of an Iowa sheep and wool promotion the board and
 34 30 the imposition of an assessment for direct use, the assessment
 34 31 shall be imposed on wool and sheep at the following rates:
 34 32    a.  (1)  For wool, two cents imposed on each pound of wool
 34 33 sold by a producer.
 34 34    b.  (2)  For sheep, ten cents imposed on each head of sheep
 34 35 sold by a producer.
 35  1    b.  If a majority of voters voting at a special referendum
 35  2 conducted pursuant to section 182.4 approve the establishment
 35  3 of a state assessment for clean water, the state assessment
 35  4 shall be imposed on wool and sheep at the rates established by
 35  5 board resolution not to exceed the rates described in paragraph
 35  6 "a".
 35  7    2.  a.  Notwithstanding subsection 1, upon a resolution
 35  8 adopted by the board, the secretary shall call a special
 35  9 referendum for voters to authorize increasing the assessment
 35 10  rate of the assessment for direct use imposed on sheep as
 35 11 provided in this section or increasing the assessment for
 35 12 direct use imposed on sheep as provided in this section.
 35 13    b.  Notwithstanding subsection 1, upon resolution adopted by
 35 14 the board, the secretary shall call a special referendum for
 35 15 voters to authorize increasing the rate of the state assessment
 35 16 for clean water imposed on sheep as provided in this section.
 35 17 The secretary shall include as part of the special referendum
 35 18 to increase the rate of the assessment for direct use a
 35 19 separate special question whether to increase the rate of the
 35 20 state assessment for clean water, if the secretary determines
 35 21 the inclusion of the special question is cost=effective or the
 35 22 resolution demands inclusion. 
 35 23    b.  c.  The special referendum to increase the rate of the
 35 24 assessment for direct use or to increase the rate of the state
 35 25 assessment for clean water shall be conducted in the same
 35 26 manner as a an initial referendum conducted upon receipt of
 35 27 a petition as provided in this chapter section 182.4, unless
 35 28 otherwise provided in the board's resolution. Only producers
 35 29 are eligible to vote in an election the special referendum and
 35 30 each producer is entitled to one vote.
 35 31    3.  a.  The special referendum to increase the rate of the
 35 32 assessment for direct use conducted pursuant to subsection 2
 35 33 shall allow a voter to cast a ballot for the following two
 35 34 questions:
 35 35    a.  (1)  For the first question, whether to authorize an
 36  1 increase in the rate of assessment rate for direct use to
 36  2 twenty=five cents imposed on each head of sheep.
 36  3    b.  (2)  For the second question, if the first question is
 36  4 approved by a majority of voters, whether to also authorize the
 36  5 board to increase that assessment the rate of the assessment
 36  6 for direct use by future resolution as provided in this
 36  7 section.
 36  8    b.  The special referendum to increase the rate of the state
 36  9 assessment for clean water shall be conducted in the same
 36 10 manner as described in subsection 3 and shall allow a voter to
 36 11 cast a ballot for the following two questions:
 36 12    (1)  For the first question, whether to authorize an increase
 36 13 in the rate of state assessment for clean water to a rate
 36 14 established by board resolution not to exceed the increased
 36 15 rate of assessment for direct use described in subsection 3,
 36 16 paragraph "a", subparagraph (1).
 36 17    (2)  For the second question, if the first question is
 36 18 approved by a majority of voters, whether to also authorize the
 36 19 board to increase that rate of state assessment for clean water
 36 20 by future resolution as provided in subsection 3, paragraph "a",
 36 21 subparagraph (2).
 36 22    c.  A state assessment for clean water shall not be effective
 36 23 if the state assessment exceeds the assessment for direct use.
 36 24    4.  a.  If a majority of voters approve the first question to
 36 25 increase the rate of the assessment for direct use as described
 36 26 in subsection 3, paragraph "a", subparagraph (1), twenty=five
 36 27 cents shall be imposed on each head of sheep sold by a producer
 36 28 as effectuated by the board pursuant to section 182.12.
 36 29    b.  If a majority of voters also approve increasing the
 36 30 rate of the state assessment for clean water as described in
 36 31 subsection 3, paragraph "b", subparagraph (1), the increased
 36 32 rate shall be imposed on each head of sheep sold by a producer
 36 33 as effectuated by the board pursuant to section 182.12.
 36 34    5.  a.  If a majority of voters approve both the first and
 36 35 second questions to increase the rate of the assessment for
 37  1 direct use under subsection 3, paragraph "a", subparagraphs (1)
 37  2 and (2), all of the following apply:
 37  3    a.  (1)  Twenty=five The rate of the assessment for direct
 37  4 use shall equal twenty=five cents shall be imposed on each
 37  5 head of sheep sold by a producer as effectuated by the board
 37  6 pursuant to section 182.12.
 37  7    b.  (2)  The board may adopt one or more resolutions to
 37  8 further impose an increased rate of assessment rate for direct
 37  9 use.
 37 10    b.  If a majority of voters also approve increasing the
 37 11 rate of state assessment for clean water as described in
 37 12 subsection 3, paragraph "b", subparagraphs (1) and (2), all of
 37 13 the following shall apply:
 37 14    (1)  The rate of the state assessment for clean water shall
 37 15 equal the increase described in subsection 3, paragraph "b",
 37 16 subparagraph (1), imposed on each head of sheep sold by a
 37 17 producer.
 37 18    (2)  The board may adopt one or more resolutions to further
 37 19 impose an increased rate of state assessment for clean water
 37 20 so long as the rate does not exceed the rate of the assessment
 37 21 for direct use.
 37 22    c.  The increased assessment rate of the assessment for
 37 23 direct use or the increased rate of the state assessment for
 37 24 clean water shall be imposed on each head of sheep sold by
 37 25 a producer as effectuated by the board pursuant to section
 37 26 182.12. The board shall comply with all of the following:
 37 27    (1)  The board must wait three or more years from the
 37 28 effective date of the previous action imposing an increase in
 37 29 the rate of the assessment for direct use in order to adopt
 37 30 a resolution. For the first increase, the effective date is
 37 31 the date of the special referendum to increase the rate of
 37 32 the assessment. For any subsequent increase in the rate of
 37 33 assessment, the effective date is the date that the board last
 37 34 adopted a resolution imposing an increased rate as provided in
 37 35 this paragraph "b" subsection.
 38  1    (2)  The board must wait three or more years from the
 38  2 effective date of the previous action imposing an increase in
 38  3 the rate of the state assessment for clean water in order to
 38  4 adopt a resolution.  For the first increase, the effective date
 38  5 is the date of the special referendum to increase the rate
 38  6 of the state assessment for clean water.  For any subsequent
 38  7 increase, the effective date is the date that the board last
 38  8 adopted a resolution imposing an increased rate as provided in
 38  9 this subsection.
 38 10    (2)  (3)  The board shall not adopt a resolution until it
 38 11 provides notice to producers of the proposed increase in the
 38 12 assessment for direct use or the state assessment for clean
 38 13 water and an opportunity for producers to submit written or
 38 14 oral comments to the board regarding the proposed increase.
 38 15 The board may provide notice by publication in the same manner
 38 16 as provided in section 182.3, publication on its internet
 38 17 site, mail bearing a United States postal service postmark,
 38 18 electronic transmission, or hand=delivery.
 38 19    (3)(4)  (a)  The increase in the assessment rate of the
 38 20 assessment for direct use imposed by a resolution adopted by
 38 21 the board must shall equal five cents. However, the assessment
 38 22  rate of the assessment for direct use imposed by a resolution
 38 23 of the board shall not equal more than fifty cents.
 38 24    (b)  The increase in the rate of the state assessment
 38 25 for clean water imposed by resolution adopted by the board
 38 26 shall not exceed five cents. However, the rate of the state
 38 27 assessment for clean water imposed by resolution of the board
 38 28 shall not equal more than fifty cents.
 38 29    6.  a.  If a majority of voters do not authorize increasing
 38 30 the rate of the assessment rate for direct use pursuant to a
 38 31 special referendum conducted pursuant to under this section,
 38 32 the assessment rate for the assessment for direct use shall be
 38 33 the same as provided in subsection 1, paragraph "a".
 38 34    b.  If a majority of voters do not authorize increasing the
 38 35 rate of the assessment for direct use pursuant to a special
 39  1 referendum conducted under this section, the rate for the state
 39  2 assessment for clean water shall be the same as provided in
 39  3 subsection 1, paragraph "b".
 39  4    b.  7.  Not more than one special referendum to establish an
 39  5 assessment for direct use or to establish a state assessment
 39  6 for clean water shall be conducted pursuant to this section.
 39  7    Sec. 43.  Section 182.14, Code 2016, is amended to read as
 39  8 follows:
 39  9    182.14  Assessment Assessments.
 39 10    1.  An assessment for direct use or a state assessment for
 39 11 clean water provided in this chapter shall be imposed on the
 39 12 producer as follows:
 39 13    a.  If the producer sells wool or sheep to the first
 39 14 purchaser within this state, the following shall apply:
 39 15    (1)  If the sale occurs at a concentration point, the
 39 16 assessment shall be imposed at the time of delivery. The first
 39 17 purchaser shall deduct the assessment or state assessment from
 39 18 the price paid to the producer at the time of sale.
 39 19    (2)  If the sale does not occur at a concentration point,
 39 20 the producer shall deduct the assessment or state assessment
 39 21  from the amount received from the sale and shall forward the
 39 22 amount deducted to the board within thirty days following each
 39 23 calendar quarter.
 39 24    b.  If the producer sells, ships, or otherwise disposes of
 39 25 wool or sheep to any person outside this state, the producer
 39 26 shall deduct the assessment or state assessment from the amount
 39 27 received from the sale and shall forward the amount deducted
 39 28 to the board.
 39 29    2.  The assessment for direct use or the state assessment
 39 30 for clean water imposed by this section shall be remitted to
 39 31 the board not later than thirty days following each calendar
 39 32 quarter during which the assessment amount or state assessment
 39 33 amount was deducted.
 39 34    Sec. 44.  Section 182.15, subsection 1, paragraph e, Code
 39 35 2016, is amended to read as follows:
 40  1    e.  The rate of withholding and the total amount of the
 40  2 assessment for direct use and the state assessment for
 40  3 clean water withheld.  The board may require the invoice to
 40  4 separately indicate the amount withheld for the assessment for
 40  5 direct use and the state assessment for clean water.
 40  6    Sec. 45.  Section 182.16, Code 2016, is amended to read as
 40  7 follows:
 40  8    182.16  Deposit and disbursement Administration of funds
 40  9  moneys.
 40 10    1.  The board shall deposit amounts moneys collected from the
 40 11 assessment for direct use imposed pursuant to section 182.14 in
 40 12 an account established pursuant to section 182.12. Expenses
 40 13 and disbursements incurred and made pursuant to this chapter
 40 14 shall be made by voucher, draft, or check bearing the signature
 40 15 of a person designated by majority vote of the board.
 40 16    2.  The board may deposit moneys collected from the state
 40 17 assessment for clean water in a qualified financial institution
 40 18 until transferred to the clean water fund created in section
 40 19 466B.51. If the state assessment for clean water is terminated
 40 20 as provided in section 182.4, the remaining moneys collected
 40 21 from that state assessment shall be immediately transferred to
 40 22 the clean water fund.
 40 23    Sec. 46.  Section 182.17, Code 2016, is amended to read as
 40 24 follows:
 40 25    182.17  Refunds.
 40 26    1.  a.  A producer who has paid the assessment for direct use
 40 27  may, by application in writing to the board, secure a refund of
 40 28 all or part of the amount paid to the board.
 40 29    b.  A producer who has paid the state assessment for clean
 40 30 water to the board may, by application in writing to the board,
 40 31 secure a refund of all or part of the amount paid to the board.
 40 32 The board shall transmit any approved application for a refund
 40 33 to the division of soil conservation and water quality of the
 40 34 department of agriculture and land stewardship for payment.
 40 35    2.  The refund shall be payable only when the application has
 41  1 been made to the board within sixty days after the deduction
 41  2 has been made by the producer or within sixty days after the
 41  3 remittance has been made by the first purchaser.
 41  4    3.  Each application for refund by a producer shall have
 41  5 an attached proof indicating that the assessment for direct
 41  6 use was paid.  If a state assessment for clean water is
 41  7 imposed, the attached proof shall also indicate that the state
 41  8 assessment has also been paid. The attached proof of the
 41  9 assessment paid may be in the form of a duplicate or certified
 41 10 copy of the purchase invoice by the purchaser.
 41 11    4.  The application shall allow the applicant to elect
 41 12 whether the refund is for the assessment for direct use or the
 41 13 state assessment for clean water or both.  The board shall not
 41 14 approve an application unless the application indicates the
 41 15 election.
 41 16    Sec. 47.  Section 182.18, Code 2016, is amended to read as
 41 17 follows:
 41 18    182.18  Use of moneys.
 41 19    1.  Moneys from the assessment for direct use collected
 41 20 under this chapter are subject to audit by the auditor of state
 41 21 and shall be used by the Iowa sheep and wool promotion board
 41 22 first for the payment of collection and refund expenses, second
 41 23 for payment of the costs and expenses arising in connection
 41 24 with conducting referendums, third for the purposes identified
 41 25 in section 182.11, and fourth for the cost of audits for
 41 26 the auditor of state. Moneys of the board remaining after
 41 27 a special referendum is held at which a majority of the
 41 28 voters favor termination of the board and the assessment for
 41 29 direct use shall continue to be expended in accordance with
 41 30 this chapter until exhausted. The auditor of state may seek
 41 31 reimbursement for the cost of the audit.
 41 32    2.  Except as expressly provided in this chapter, moneys
 41 33 collected by the board from the state assessment for clean
 41 34 water shall not be used for any purpose other than to be
 41 35 transferred to the clean water fund created in section 466B.51.
 42  1    2.  3.  The board shall not engage in any political activity,
 42  2 and it shall be a condition of any allocation of funds that
 42  3 any organization receiving funds shall not expend the funds on
 42  4 political activity or on any attempt to influence legislation.
 42  5    Sec. 48.  Section 182.22, Code 2016, is amended to read as
 42  6 follows:
 42  7    182.22  Purchasers outside Iowa.
 42  8    The secretary may enter into arrangements with first
 42  9 purchasers from outside Iowa for payment of the assessment for
 42 10 direct use and the state assessment for clean water.
 42 11                           DIVISION IV
 42 12                   IOWA PORK PRODUCERS COUNCIL
 42 13                 IOWA PORK PRODUCERS ASSOCIATION
 42 14    Sec. 49.  Section 183A.1, subsection 1, Code 2016, is amended
 42 15 to read as follows:
 42 16    1.  "Assessment" means an excise tax on the sale of porcine
 42 17 animals as provided in this chapter which may include an
 42 18 assessment for direct use and a state assessment for clean
 42 19 water.
 42 20    Sec. 50.  Section 183A.1, Code 2016, is amended by adding the
 42 21 following new subsection:
 42 22    NEW SUBSECTION.  4A.  "National assessment" means an excise
 42 23 tax on the sale of porcine animals imposed pursuant to the Pork
 42 24 Promotion Act.
 42 25    Sec. 51.  Section 183A.1, subsection 7, Code 2016, is amended
 42 26 to read as follows:
 42 27    7.  "Pork Promotion Act" means the federal Pork Promotion,
 42 28 Research, and Consumer Information Act of 1985, 7 U.S.C. {4801
 42 29 et seq.
 42 30    Sec. 52.  Section 183A.5, subsection 1, paragraph i, Code
 42 31 2016, is amended to read as follows:
 42 32    i.  Receive, administer, disburse and account for, in
 42 33 addition to the funds moneys received from the assessment for
 42 34 direct use and the state assessment for clean water provided in
 42 35 this chapter, other funds moneys voluntarily contributed to the
 43  1 council for the purpose of promoting the pork industry.
 43  2    Sec. 53.  Section 183A.5, Code 2016, is amended by adding the
 43  3 following new subsection:
 43  4    NEW SUBSECTION.  4.  The council shall cooperate with
 43  5 the division of soil conservation and water quality of the
 43  6 department of agriculture and land stewardship in doing all of
 43  7 the following:
 43  8    a.  Transferring moneys collected from the state assessment
 43  9 for clean water imposed as a result of a special referendum
 43 10 conducted pursuant to section 183A.9 to the clean water fund
 43 11 created in section 466B.51.
 43 12    b.  Being reimbursed for reasonable expenses incurred in
 43 13 conducting an initial or special referendum to establish,
 43 14 continue, or terminate a state assessment for clean water.
 43 15    Sec. 54.  Section 183A.6, Code 2016, is amended to read as
 43 16 follows:
 43 17    183A.6  Assessment Assessments.
 43 18    1.  The council shall make impose an assessment for direct
 43 19 use of not less than point zero zero two nor more than point
 43 20 zero zero three of the gross sale price of all porcine animals.
 43 21 The assessment for direct use shall be point zero zero two five
 43 22 of the gross sale price of porcine animals until consent to
 43 23 an assessment has been given through the initial referendum
 43 24 referred to in this chapter. After approval of the initial
 43 25 referendum, the rate of assessment for direct use shall be
 43 26 determined established by the council.
 43 27    2.  a.  If an assessment for direct use is imposed under
 43 28 subsection 1, the council shall impose a state assessment for
 43 29 clean water if approved at a special referendum conducted
 43 30 pursuant to section 183A.9. The rate of the state assessment
 43 31 for clean water shall be established by the council as provided
 43 32 in that section.
 43 33    b.  If a national assessment is imposed under section
 43 34 183A.9A, the Iowa pork producers association shall impose a
 43 35 state assessment for clean water if approved at a special
 44  1 referendum conducted pursuant to section 183A.9. The rate
 44  2 of the state assessment for clean water shall be established
 44  3 by the Iowa pork producers association as provided in that
 44  4 section.
 44  5    3.  a.  The assessment for direct use and the state
 44  6 assessment for clean water shall be made at the time of
 44  7 delivery of the porcine animals for sale, and shall be deducted
 44  8 by the first purchaser from the price paid to the seller. The
 44  9 first purchaser, at the time of sale, shall make and deliver
 44 10 to the seller an invoice for each purchase showing the names
 44 11 and addresses of the seller and the first purchaser, the number
 44 12 and kind of porcine animals sold, the date of sale, and the
 44 13 assessment for direct use, and any state assessment for clean
 44 14 water, made on the sale.  The council may require the invoice
 44 15 to separately indicate the amount withheld for the assessment
 44 16 for direct use and the state assessment for clean water.
 44 17    b.  Assessments An assessment for direct use and the state
 44 18 assessment for clean water shall be paid to the Iowa pork
 44 19 producers council or its designated agent by first purchasers
 44 20 at a time prescribed by the council, but not later than the
 44 21 last day of the month following the month in which the animals
 44 22 were purchased.
 44 23    4.  If a national assessment is imposed pursuant to section
 44 24 183A.9A, and a state assessment for clean water is imposed
 44 25 under section 183A.9, the Iowa pork producers association shall
 44 26 impose and collect the state assessment for clean water in
 44 27 the same manner as the assessment for direct use set forth in
 44 28 subsection 3.  However, the Iowa pork producers association may
 44 29 impose and collect the state assessment for clean water based
 44 30 on procedures for the national assessment as set forth in the
 44 31 Pork Promotion Act.  The invoice may correspond to any invoice
 44 32 required by the Pork Promotion Act.
 44 33    Sec. 55.  Section 183A.7, Code 2016, is amended to read as
 44 34 follows:
 44 35    183A.7  Administration of moneys ==== appropriation.
 45  1    1.  a.  Assessments An assessment for direct use imposed
 45  2 under this chapter pursuant to section 183A.6 and paid to and
 45  3 collected by the Iowa pork producers council shall be deposited
 45  4 in the pork promotion fund which is established in the office
 45  5 of the treasurer of state. The department of administrative
 45  6 services shall transfer moneys from the pork promotion fund
 45  7 to the council for deposit into an account established by the
 45  8 council in a qualified financial institution. The department
 45  9 shall transfer the moneys as provided in a resolution adopted
 45 10 by the council. However, the department is only required to
 45 11 transfer moneys once during each day and only during hours when
 45 12 the offices of the state are open.
 45 13    b.  All moneys deposited in the pork promotion fund and
 45 14 transferred to the council as provided in this section are
 45 15 appropriated and shall be used for the administration of this
 45 16 chapter and for the payment of claims based upon obligations
 45 17 incurred in the performance of activities and functions set
 45 18 forth in this chapter.
 45 19    c.  From the moneys collected, deposited, and transferred
 45 20 to the council as provided in this chapter, the council shall
 45 21 first pay the costs of referendums held pursuant to this
 45 22 chapter. Of the moneys remaining, at least twenty=five percent
 45 23 shall be remitted to the national pork producers council and
 45 24 at least fifteen percent shall be remitted to the Iowa pork
 45 25 producers association, in the proportion the committee council
 45 26  determines, for use by recipients in a manner not inconsistent
 45 27 with market development as defined in section 183A.1. Moneys
 45 28 remaining shall be spent as found necessary by the council to
 45 29 further carry out the provisions and purposes of this chapter.
 45 30    d.  However, in In no event shall the total expenses exceed
 45 31 the total amount of moneys transferred from the pork promotion
 45 32  fund for use by the council.
 45 33    2.  a.  Moneys collected from a state assessment for clean
 45 34 water by the council may be deposited in a qualified financial
 45 35 institution and shall be transferred to the clean water fund
 46  1 created in section 466B.51.
 46  2    b.  If a national assessment is imposed pursuant to section
 46  3 183A.9A, moneys from the state assessment for clean water
 46  4 collected by the Iowa pork producers association shall be
 46  5 transferred to the clean water fund created in section 466B.51.
 46  6    c.  The Iowa pork producers association shall maintain
 46  7 separate accounts for moneys collected from the national
 46  8 assessment and the state assessment for clean water.
 46  9    d.  The Iowa pork producers association shall adopt rules
 46 10 as necessary to administer this subsection and other sections
 46 11 in this chapter which directly or indirectly relate to this
 46 12 subsection.
 46 13    Sec. 56.  Section 183A.8, Code 2016, is amended to read as
 46 14 follows:
 46 15    183A.8  Refund of assessment the assessments.
 46 16    1.  A producer from whom the an assessment for direct use or
 46 17 a state assessment for clean water has been deducted, upon is
 46 18 entitled to receive a refund upon filing a written application
 46 19 filed with the council within thirty days after its collection,
 46 20 shall have that amount refunded by the council.
 46 21    2.  a.  Application If an assessment for direct use or
 46 22 an assessment for direct use and any state assessment for
 46 23 clean water are imposed, application forms shall be given by
 46 24 the council to each first purchaser when requested and the
 46 25 first purchaser shall make the applications available to any
 46 26 producer.
 46 27    b.  Each application for a refund by a producer shall have
 46 28 attached a proof of assessment for direct use deducted.  If
 46 29 the assessment for direct use and state assessment for clean
 46 30 water are imposed, the attached proof shall indicate the amount
 46 31 of the assessment and the amount of the state assessment
 46 32 deducted. The proof of the assessment for direct use and any
 46 33 state assessment for clean water deducted shall be in the form
 46 34 of the original or a copy of the purchase invoice by the first
 46 35 purchaser.  The application shall allow the applicant to elect
 47  1 whether the refund is for the assessment for direct use or the
 47  2 state assessment for clean water or both.  The council shall
 47  3 not approve an application unless the application indicates the
 47  4 election.
 47  5    3.  The council shall have no not more than thirty days from
 47  6 the date the application for a refund is received to remit do
 47  7 all of the following:
 47  8    a.  Remit the amount of the refund of an assessment for
 47  9 direct use to the producer.
 47 10    b.  Submit an approved application for the refund of a state
 47 11 assessment for clean water to the division of soil conservation
 47 12 and water quality of the department of agriculture and land
 47 13 stewardship which shall remit the amount of the refund to the
 47 14 producer.
 47 15    4.  If a national assessment is established pursuant to
 47 16 section 183.9A and a state assessment for clean water is
 47 17 established pursuant to section 183.9, the producer shall file
 47 18 a written application with the Iowa pork producers association
 47 19 in lieu of the council in the same manner as provided in
 47 20 subsection 1 and the Iowa pork producers association shall
 47 21 make applications available to first purchasers as provided in
 47 22 subsection 2.  However, the Iowa pork producers association
 47 23 may provide for filing applications for a refund based on any
 47 24 applicable procedures set forth in the Pork Promotion Act.  In
 47 25 any case, the Iowa pork producers association must transfer
 47 26 approved applications for refunds to the division of soil
 47 27 conservation and water quality of the department of agriculture
 47 28 and land stewardship for payment to producers in the same
 47 29 manner as described in subsection 3.
 47 30    Sec. 57.  Section 183A.9, Code 2016, is amended to read as
 47 31 follows:
 47 32    183A.9  Referendum Initial and special referendums ====
 47 33 assessments.
 47 34    1.  At a time designated by the council within eighteen
 47 35 months after the termination of the collection of assessments
 48  1  the national assessment imposed under the Pork Promotion Act,
 48  2 the secretary shall conduct an initial referendum under to
 48  3 establish an Iowa pork producers council and an assessment for
 48  4 direct use. The referendum shall be conducted according to
 48  5  administrative procedures prescribed adopted by the department
 48  6 of agriculture and land stewardship.
 48  7    2.  If an assessment for direct use is established and upon
 48  8 receipt of a request of ten percent or more of the number
 48  9 of producers eligible to vote,  the secretary shall conduct a
 48 10 special referendum to determine whether producers favor the
 48 11 establishment of a state assessment for clean water.  The
 48 12 special referendum shall be conducted in the same manner as
 48 13 an initial referendum conducted pursuant to subsection 1.
 48 14 The rate of the state assessment for clean water shall be
 48 15 established by the Iowa pork producers council not to exceed
 48 16 the rate of the assessment for direct use established pursuant
 48 17 to an initial referendum described in section 183A.6.
 48 18    3.  Upon receipt of petition that otherwise complies with
 48 19 the requirements of subsection 2, the secretary may in lieu of
 48 20 conducting a special referendum include as part of the initial
 48 21 referendum a separate special question whether to establish a
 48 22 state assessment for clean water, if the secretary determines
 48 23 it to be cost=effective or the petition demands it.
 48 24    4.  Upon signing a statement certifying to the secretary
 48 25 that the person is a bona fide producer as defined in this
 48 26 chapter, each producer is entitled to one vote in each initial
 48 27 or special referendum. The secretary shall determine the
 48 28 qualification of producers under this section.
 48 29    5.  The secretary shall count and tabulate the ballots
 48 30 filed during the initial or special referendum within thirty
 48 31 days of the close of the referendum. If from the tabulation
 48 32 the secretary determines that a majority of the total number
 48 33 of producers voting in the initial referendum favors the
 48 34 establishment of the assessment for direct use, the assessment
 48 35 provided for in the referendum shall be levied imposed.  If
 49  1 from the tabulation the secretary determines that a majority of
 49  2 the total number of producers voting in the initial or special
 49  3 referendum favors the establishment of the state assessment
 49  4 for clean water, the state assessment shall be imposed. The
 49  5 ballots cast pursuant to this section constitute complete and
 49  6 conclusive evidence for use in determinations made by the
 49  7 secretary under this chapter.
 49  8    6.  a.  The secretary shall hold subsequent referendums
 49  9  conduct a special referendum on request of receipt of a
 49 10 petition signed by ten percent or more of the number of
 49 11 producers eligible to vote, to determine whether the producers
 49 12 favor the termination or any of the following:
 49 13    (1)  The suspension of the assessment for direct use.
 49 14    (2)  The termination of the assessment for direct use and the
 49 15 state assessment for clean water, if established.
 49 16    b.  The secretary shall suspend or terminate collection
 49 17 of the assessment for direct use within six months after the
 49 18 secretary determines that suspension or termination of the
 49 19 assessment for direct use is favored by a majority of the
 49 20 producers voting in the special referendum, and. The secretary
 49 21  shall terminate the assessment for direct use in an orderly
 49 22 manner as soon as practicable after the determination.
 49 23    7.  a.  The secretary shall conduct a special referendum on
 49 24 receipt of a petition of producers otherwise complying with the
 49 25 requirements in subsection 6 to conduct a special referendum to
 49 26 terminate the state assessment for clean water.
 49 27    b.  Upon receipt of a petition that otherwise complies
 49 28 with the requirements of subsection 6, the secretary shall
 49 29 include as part of the special referendum conducted under that
 49 30 subsection a separate special question whether to terminate the
 49 31 state assessment for clean water, if the secretary determines
 49 32 the inclusion of the special question is cost=effective or the
 49 33 petition demands inclusion.
 49 34    8.  The secretary shall terminate the state assessment for
 49 35 clean water in the same manner as provided in subsection 6,
 50  1 upon determining that the council is abolished, the assessment
 50  2 for direct use is not being collected, and the national
 50  3 assessment is not being collected.
 50  4    Sec. 58.  Section 183A.9A, Code 2016, is amended to read as
 50  5 follows:
 50  6    183A.9A  Suspension during national order.
 50  7    1.  The terms of all voting members serving on the council on
 50  8 January 31, 1986, terminate at the time provided in subsection
 50  9 2.
 50 10    2.  a.  On the date of the commencement of the collection
 50 11 of assessments a national assessment under the Pork Promotion
 50 12 Act, the collection of the assessments assessment for direct
 50 13 use under section 183A.6 shall be suspended. The council shall
 50 14 continue to operate after suspension until all refunds are paid
 50 15 and all funds moneys remaining in the pork promotion fund, less
 50 16 a reserve for future refunds, are disbursed for the purposes
 50 17 enumerated in this chapter. Notwithstanding section 183A.7,
 50 18 the council need not retain a reserve for future referendums.
 50 19 Upon completion of these acts, the existence of the Iowa pork
 50 20 producers council is suspended. The secretary of agriculture
 50 21  shall certify the suspension of the council as of a date
 50 22 certain to the Iowa pork producers council and the Iowa pork
 50 23 producers association. When the existence of the council is
 50 24 suspended, the terms of office of council members terminate.
 50 25    b.  On the date of the commencement of the collection of
 50 26 the national assessment under the Pork Promotion Act, the Iowa
 50 27 pork producers association shall assume collection of the state
 50 28 assessment for clean water under section 183A.9.
 50 29    3.  a.  If the rate of the national assessment has changed,
 50 30 and upon receipt of a petition that otherwise complies
 50 31 with requirements for submitting a petition to suspend or
 50 32 terminate an assessment for direct use under section 183A.9,
 50 33 the secretary shall conduct a special referendum to determine
 50 34 whether to change the rate of the state assessment for
 50 35 clean water to a rate established by the Iowa pork producers
 51  1 association not to exceed the rate of the national assessment.
 51  2    b.  Upon receipt of a petition that otherwise complies with
 51  3 requirements for submitting a petition to suspend or terminate
 51  4 an assessment for direct use under section 183A.9, the
 51  5 secretary shall include as part of a referendum to change the
 51  6 rate of the national assessment, a separate special question
 51  7 whether to change the rate of the state assessment for clean
 51  8 water not to exceed the change in the national assessment, if
 51  9 the secretary determines the inclusion of the special question
 51 10 complies with federal law and either it is cost=effective or
 51 11 the petition demands inclusion.
 51 12    c.  If the national assessment is changed, and the secretary
 51 13 determines that a change in the state assessment for clean
 51 14 water is favored by a majority of the producers voting in a
 51 15 special referendum or special question as part of a referendum
 51 16 to change the rate of the national assessment, the rate of
 51 17 the state assessment shall be changed on a date determined by
 51 18 the secretary after consultation with the Iowa pork producers
 51 19 association but not later than six months after the date that
 51 20 the special referendum or referendum was conducted.
 51 21    3.  4.  On the date of the termination of the collection of
 51 22 assessments the national assessment under the Pork Promotion
 51 23 Act, the period of suspension of the assessments assessment
 51 24 for direct use under subsection 2 terminates. The secretary
 51 25 shall collect moneys from the assessments assessment for direct
 51 26 use under section 183A.6 and the state assessment for clean
 51 27 water under section 183A.9 until this duty can be resumed by
 51 28 the reactivated council.  The secretary shall deposit moneys
 51 29 collected from the assessment for direct use in the pork
 51 30 promotion fund. The secretary shall transfer moneys collected
 51 31 from the state assessment for clean water to the clean water
 51 32 fund created in section 466B.51.
 51 33    4.  5.  On the date of the termination of the collection of
 51 34 assessments the national assessment under the Pork Promotion
 51 35 Act, the period of suspension of the council under subsection 2
 52  1 terminates. Within sixty days from this date, the secretary
 52  2 shall appoint voting members to the council. For purposes of
 52  3 section 183A.3, a voting member so appointed is deemed not to
 52  4 have served a previous consecutive term. The terms of office
 52  5 of voting members of the initial reactivated council shall be
 52  6 determined by lot, but members from the same district shall
 52  7 not serve the same terms. As nearly as possible one=third of
 52  8 the voting members shall serve for one year, one=third of the
 52  9 voting members shall serve for two years, and one=third of the
 52 10 voting members shall serve for three years. Subsequent voting
 52 11 members shall be appointed pursuant to section 183A.2.
 52 12    5.  6.  The secretary shall call the first meeting of the
 52 13 reactivated council. Upon reactivation, the council shall
 52 14 reimburse the secretary for expenses incurred in carrying out
 52 15 the duties provided in this section.
 52 16    Sec. 59.  Section 183A.9A, Code 2016, is amended by adding
 52 17 the following new subsections:
 52 18    NEW SUBSECTION.  6.  The state recognizes the Iowa pork
 52 19 producers association as a state association under the Pork
 52 20 Promotion Act. For purposes of this chapter, "association"
 52 21 shall include a successor state association or other state
 52 22 association that administers the national assessment in Iowa.
 52 23    NEW SUBSECTION.  7.  If a state assessment for clean water
 52 24 is established or continued pursuant to sections 183A.9 and
 52 25 183A.9B, the Iowa pork producers association shall administer
 52 26 the state assessment for the period that the Pork Promotion Act
 52 27 is in effect, unless the state assessment is terminated under
 52 28 section 183A.9.
 52 29    NEW SUBSECTION.  8.  The Iowa pork producers association
 52 30 shall cooperate with the division of soil conservation and
 52 31 water quality of the department of agriculture and land
 52 32 stewardship in doing all of the following:
 52 33    a.  Transferring moneys from the state assessment for clean
 52 34 water to the clean water fund created in section 466B.51.
 52 35    b.  Being reimbursed for reasonable expenses incurred in
 53  1 conducting an initial or special referendum to establish,
 53  2 continue, or terminate a state assessment for clean water.
 53  3                           DIVISION V
 53  4                        IOWA EGG COUNCIL
 53  5    Sec. 60.  Section 184.1, subsection 1, Code 2016, is amended
 53  6 to read as follows:
 53  7    1.  "Assessment" means an excise tax on the sale of eggs as
 53  8 provided in this chapter which may include an assessment for
 53  9 direct use and a state assessment for clean water.
 53 10    Sec. 61.  Section 184.2, Code 2016, is amended to read as
 53 11 follows:
 53 12    184.2  Establishment of Iowa egg council and assessment
 53 13  assessments.
 53 14    1.  The secretary shall call and the department shall
 53 15 conduct a an initial referendum upon the department's receipt
 53 16 of a petition for direct use which is signed by at least
 53 17 twenty producers requesting a an initial referendum to
 53 18 determine whether to establish an Iowa egg council and to
 53 19 impose establish an assessment for direct use to be imposed as
 53 20 provided in section 184.3.
 53 21    2.  a.  If the council has been established, the secretary
 53 22 shall call and the department shall conduct a special
 53 23 referendum upon the department's receipt of a petition that
 53 24 otherwise complies with subsection 1 calling for a state
 53 25 assessment for clean water to be imposed as provided in section
 53 26 184.3.
 53 27    b.  Upon receipt of petition that otherwise complies with
 53 28 subsection 1, the secretary may in lieu of conducting a special
 53 29 referendum include as part of the initial referendum a separate
 53 30 special question whether to establish a state assessment for
 53 31 clean water to be imposed as provided in section 184.3, if the
 53 32 secretary determines the inclusion of the special question is
 53 33 cost=effective or the petition demands inclusion.
 53 34    3.  The initial referendum or a special referendum described
 53 35 in this section shall be conducted within sixty days following
 54  1 receipt of the petition. The petitioners shall guarantee
 54  2 payment of the cost of the initial referendum or special
 54  3 referendum by providing evidence of financial security as
 54  4 required by the department.
 54  5    2.  4.  The department shall give notice of the initial
 54  6  referendum on the question whether to establish a council and
 54  7 to impose an assessment or special referendum described in this
 54  8 section by publishing the notice for a period of not less than
 54  9 five days in at least one newspaper of general circulation in
 54 10 the state. The notice shall state the voting places, period
 54 11 of time for voting, and other information deemed necessary by
 54 12 the department. A An initial referendum or special referendum
 54 13  shall not be commenced until five days after the last date of
 54 14 publication.
 54 15    3.  a.  5.  Each producer who signs a statement certifying
 54 16 that the producer is a bona fide producer shall be an eligible
 54 17 voter under this section. An eligible voter is entitled to
 54 18 cast one vote in each initial referendum or special referendum
 54 19  conducted under this section.
 54 20    b.  6.  At the close of the initial referendum or special
 54 21 referendum, the secretary shall count and tabulate the ballots
 54 22 cast.
 54 23    (1)7.  a.  If a majority of eligible voters approve
 54 24 establishing an Iowa egg a council and imposing an assessment
 54 25 for direct use, a the council and the assessment shall be
 54 26 established, and an the assessment shall be imposed, commencing
 54 27 not more than sixty days following the initial referendum as
 54 28 determined by the council and shall continue until eligible
 54 29 voters voting in a special referendum held conducted pursuant
 54 30 to section 184.5 vote to abolish the council and terminate the
 54 31 imposition of the assessment for direct use.
 54 32    b.  If a majority of eligible voters approve establishing
 54 33 a state assessment for clean water, pursuant to a special
 54 34 referendum, the state assessment shall be imposed commencing
 54 35 not more than sixty days following the special referendum as
 55  1 determined by the council. If a majority of eligible voters
 55  2 approve establishing a state assessment for clean water, as
 55  3 part of an initial referendum the state assessment shall be
 55  4 imposed in the same manner described in paragraph "a". The
 55  5 state assessment for clean water shall continue until eligible
 55  6 voters voting in a special referendum conducted pursuant to
 55  7 section 184.5 vote to do any of the following:
 55  8    (1)  Abolish the council and terminate the assessment for
 55  9 direct use.
 55 10    (2)  Terminate the state assessment for clean water.
 55 11    (2)8.  a.  If a majority of the voters do not approve
 55 12 establishing the council and imposing the assessment for direct
 55 13 use, the council and the assessment shall not be established,
 55 14  and an the assessment shall not be imposed, until another
 55 15 initial referendum is held conducted under this chapter and a
 55 16 majority of the eligible voters approve establishing a council
 55 17 and imposing the an assessment for direct use. If a an initial
 55 18  referendum should fail, another initial referendum to decide
 55 19 whether to establish a council and an assessment shall not be
 55 20 held conducted within at least one hundred eighty days from the
 55 21 date that the last initial referendum was conducted.
 55 22    b.  If a majority of the voters do not approve establishing
 55 23 a state assessment for clean water, the state assessment
 55 24 shall not be established until the question is approved at
 55 25 a special referendum or as part of an initial referendum
 55 26 conducted pursuant to this section. If a special referendum,
 55 27 or an initial referendum which includes the question whether
 55 28 to establish a state assessment for clean water, should fail,
 55 29 the special referendum or an initial referendum which includes
 55 30 the special question shall not be conducted for at least one
 55 31 hundred eighty days from the date that the last such special
 55 32 referendum or initial referendum was conducted.
 55 33    4.  9.  Immediately after passage of the question to
 55 34 establish a council and assessment for direct use at the an
 55 35 initial referendum, the secretary shall appoint seven members
 56  1 to the council in accordance with section 184.6 based on
 56  2 nominations made by the Iowa poultry association. The Iowa
 56  3 poultry association shall nominate and the secretary shall
 56  4 appoint two members representing large producers, two members
 56  5 representing medium producers, and three members representing
 56  6 small producers. The department, in consultation with the Iowa
 56  7 poultry association, shall determine initial classifications
 56  8 for small, medium, and large producers. The secretary shall
 56  9 complete the appointments within thirty days following passage
 56 10 of the question at the initial referendum.
 56 11    Sec. 62.  Section 184.3, Code 2016, is amended to read as
 56 12 follows:
 56 13    184.3  Assessment Assessments and state assessments.
 56 14    1.  a.  Except as provided in paragraph "b" subsection 4,
 56 15 an assessment for direct use of two and one=half cents is
 56 16 imposed on each thirty dozen eggs produced in this state. The
 56 17 assessment for direct use shall be imposed on a producer at the
 56 18 time of delivery to a purchaser who shall deduct the assessment
 56 19 for direct use from the price paid to a producer at the time of
 56 20 sale.
 56 21    2.  A state assessment for clean water is imposed and
 56 22 deducted in the same manner as the assessment for direct use
 56 23 provided in subsection 1. The rate of the state assessment for
 56 24 clean water shall be established by the council at a rate not
 56 25 to exceed the rate of assessment for direct use as provided in
 56 26 subsection 1.
 56 27    3.  The assessment for direct use and the state assessment
 56 28 for clean water shall not be refundable. The assessment is for
 56 29 direct use and state assessment for clean water are due to be
 56 30 paid to the council within thirty days following each calendar
 56 31 quarter, as provided by the council.
 56 32    b.4.  a.  Upon request of the council, the secretary shall
 56 33 call a special referendum for producers to vote on whether to
 56 34 authorize an increase in the rate of assessment for direct use
 56 35  to an amount that is more than two and one=half cents imposed
 57  1 on each thirty dozen eggs produced in this state.
 57  2    b.  Upon request of the council, the secretary shall call
 57  3 a special referendum for producers to vote on whether to
 57  4 authorize an increase in the state assessment for clean water
 57  5 as established by the council not to exceed the rate of the
 57  6 assessment for direct use described in paragraph "a". The
 57  7 secretary shall include as part of a special referendum to
 57  8 increase the rate of the assessment for direct use, a separate
 57  9 special question whether to increase the rate of the state
 57 10 assessment for clean water. If the secretary determines the
 57 11 inclusion of the special question is cost=effective or the
 57 12 request demands inclusion.
 57 13    5.  a.  Notice of special referendum described in subsection
 57 14 4 shall be given and the special referendum shall be conducted
 57 15 in the manner provided in section 184.5.
 57 16    b.  If a majority of the producers voting approves the an
 57 17  increase in the rate of the assessment for direct use, the
 57 18 council may increase the assessment for to the amount rate
 57 19  approved. However, the The rate of the assessment for direct
 57 20 use shall not exceed fifteen cents imposed on each thirty dozen
 57 21 eggs produced in this state.  If a majority of the producers
 57 22 voting approves an increase in the state assessment for
 57 23 clean water, the council shall increase the rate of the state
 57 24 assessment to a rate not to exceed the rate approved for the
 57 25 assessment for direct use. 
 57 26    2.6.  a.  If the producer sells eggs to a purchaser outside
 57 27 the state of Iowa, the producer shall deduct the assessment for
 57 28 direct use from the amount received from the sale and shall
 57 29 forward the amount deducted to the council within thirty days
 57 30 following each calendar quarter.
 57 31    b.  If the producer sells eggs to a purchaser outside the
 57 32 state of Iowa, the producer shall deduct the state assessment
 57 33 for clean water in the same manner as described in paragraph
 57 34 "a".
 57 35    7.  If the producer and processor are the same person, then
 58  1 that person shall pay the assessment for direct use or the
 58  2 state assessment for clean water to the council within thirty
 58  3 days following each calendar quarter.
 58  4    3.  8.  The council may charge interest on any amount of the
 58  5  an assessment for direct use or a state assessment for clean
 58  6 water that is delinquent. The rate of interest shall not be
 58  7 more than the current rate published in the Iowa administrative
 58  8 bulletin by the department of revenue pursuant to section
 58  9 421.7. The interest amount shall be computed from the date
 58 10 the assessment for direct use or state assessment for clean
 58 11 water is delinquent, unless the council designates a later
 58 12 date. The interest amount shall accrue for each month in which
 58 13 there is delinquency calculated as provided in section 421.7,
 58 14 and counting each fraction of a month as an entire month. The
 58 15 interest amount due shall become a part of the assessment for
 58 16 direct use or the state assessment for clean water due.
 58 17    Sec. 63.  Section 184.4, subsection 1, paragraph e, Code
 58 18 2016, is amended to read as follows:
 58 19    e.  The rate of withholding and the total amount of
 58 20 assessment for direct use and the state assessment for clean
 58 21 water withheld.  The council may require the invoice to
 58 22 separately indicate the amount withheld for the assessment for
 58 23 direct use and for the state assessment for clean water.
 58 24    Sec. 64.  Section 184.5, Code 2016, is amended to read as
 58 25 follows:
 58 26    184.5  Referendums Special referendum conducted to abolish
 58 27 the council and terminate imposition of the assessment or state
 58 28 assessment.
 58 29    1.  A special referendum may be called to abolish the council
 58 30 and terminate the imposition of the assessment for direct use
 58 31 established pursuant to section 184.3 and any state assessment
 58 32 for clean water established pursuant to that section.
 58 33    2.  a.  A special referendum may be called to terminate
 58 34 the state assessment for clean water established pursuant to
 58 35 section 184.3.
 59  1    b.  The secretary shall include as part of a special
 59  2 referendum to abolish the council and terminate the assessment
 59  3 for direct use described in subsection 1, a separate special
 59  4 question whether to terminate the state assessment for clean
 59  5 water, if the secretary determines the inclusion of the special
 59  6 question is cost=effective or the request demands inclusion.
 59  7    3.  The secretary shall call, and the department shall
 59  8 conduct, the a special referendum described in subsection
 59  9 1 upon the department's receipt of a petition requesting
 59 10 the special referendum. The petition must be signed by at
 59 11 least twenty eligible voters or fifty percent of all eligible
 59 12 voters, whichever is greater. In order to be an eligible voter
 59 13 under this section, a producer must have paid an assessment
 59 14 for direct use established under section 184.3, and a state
 59 15 assessment for clean water if established under that section,
 59 16  in the year of the special referendum. The special referendum
 59 17 shall be conducted within sixty days following receipt of the
 59 18 petition. The petitioners shall guarantee payment of the cost
 59 19 of the special referendum by providing evidence of financial
 59 20 security as required by the department.
 59 21    2.  4.  The following procedures shall apply to a special
 59 22  referendum conducted pursuant to this section:
 59 23    a.  The department shall publish a notice of the special
 59 24  referendum for a period of not less than five days in at least
 59 25 one newspaper of general circulation in the state. The notice
 59 26 shall state the voting places, period of time for voting,
 59 27 and other information deemed necessary by the department. A
 59 28 special referendum shall not be commenced until five days after
 59 29 the last date of publication.
 59 30    b.  Upon signing a statement certifying to the secretary that
 59 31 the producer is an eligible voter, a producer is entitled to
 59 32 one vote in each special referendum conducted pursuant to this
 59 33 section. The department may conduct the special referendum
 59 34 by mail, electronic means, or a general meeting of eligible
 59 35 voters. The department shall conduct the special referendum
 60  1 and count and tabulate the ballots filed during the special
 60  2  referendum within thirty days following the close of the
 60  3 special referendum.
 60  4    (1)  c.  If a majority of the total number of eligible
 60  5 voters who vote in the special referendum approve approves
 60  6  the continuation of the council and the imposition of the
 60  7  assessment for direct use, the council and the imposition of
 60  8 the assessment shall continue as provided in this chapter.
 60  9    d.  If a majority of eligible voters who vote in the special
 60 10 referendum approves the continuation of the state assessment
 60 11 for clean water, the imposition of the state assessment shall
 60 12 continue for the same period as the assessment for direct use.
 60 13    (2)  e.  If a majority of the total number of eligible
 60 14 voters who vote in the special referendum held pursuant to
 60 15 this section do not approve continuing the council and the
 60 16 imposition of the assessment for direct use, the secretary
 60 17 shall terminate the collection of the assessment for direct use
 60 18 established pursuant to section 184.3 and the state assessment
 60 19 for clean water if established pursuant to that section, on
 60 20 the first day of the year for which the referendum was to
 60 21 continue. The secretary shall terminate the activities of the
 60 22 council in an orderly manner as soon as practicable after the
 60 23 determination is made. An additional initial referendum may be
 60 24 held as provided in conducted under section 184.2. However,
 60 25 the subsequent additional referendum shall not be held within
 60 26  conducted for at least one hundred eighty days after the date
 60 27 that the last such special referendum was conducted.
 60 28    f.  If a majority of the total number of eligible voters
 60 29 who vote in the special referendum do not approve continuing
 60 30 the state assessment for clean water, the secretary shall
 60 31 terminate the state assessment in an orderly manner as soon as
 60 32 practicable after the determination is made.  An additional
 60 33 special referendum or an additional initial referendum that
 60 34 includes a special question to establish the state assessment
 60 35 for clean water may be conducted under section 184.2. However,
 61  1 the subsequent special referendum or initial referendum shall
 61  2 not be conducted for at least one hundred eighty days after
 61  3 the date that the last such special referendum or initial
 61  4 referendum was conducted.
 61  5    Sec. 65.  Section 184.10, subsection 4, Code 2016, is amended
 61  6 to read as follows:
 61  7    4.  Enter into arrangements for the collection of the
 61  8 assessment for direct use and any state assessment for clean
 61  9 water.
 61 10    Sec. 66.  Section 184.10, Code 2016, is amended by adding the
 61 11 following new subsection:
 61 12    NEW SUBSECTION.  8.  Cooperate with the division of soil
 61 13 conservation and water quality of the department of agriculture
 61 14 and land stewardship in doing all of the following:
 61 15    a.  Transferring moneys from the state assessment for clean
 61 16 water to the clean water fund created in section 466B.51.
 61 17    b.  Being reimbursed for reasonable expenses incurred in
 61 18 conducting an initial or special referendum to establish,
 61 19 continue, or terminate a state assessment for clean water.
 61 20    Sec. 67.  Section 184.13, Code 2016, is amended to read as
 61 21 follows:
 61 22    184.13  Administration of moneys.
 61 23    1.  Subject to the provisions of section 184.3, the
 61 24 assessment imposed by this chapter for direct use established
 61 25 pursuant to section 184.3, and the state assessment for
 61 26 clean water if established pursuant to that section, shall
 61 27 be remitted by the purchaser to the council not later than
 61 28 thirty days following each calendar quarter during which the
 61 29 assessment was collected.
 61 30    2.  Amounts Moneys collected from the assessment for direct
 61 31 use shall be deposited in the office of the treasurer of
 61 32 state in a separate fund to be known as the Iowa egg fund.
 61 33 The department of administrative services shall transfer
 61 34 moneys from the fund to the council for deposit into an
 61 35 account established by the council in a qualified financial
 62  1 institution. The department shall transfer the moneys as
 62  2 provided in a resolution adopted by the council. However, the
 62  3 department is only required to transfer moneys once during each
 62  4 day and only during hours when the offices of the state are
 62  5 open.
 62  6    3.  Moneys collected from a state assessment for clean
 62  7 water by the council may be deposited in a qualified financial
 62  8 institution and shall be transferred to the clean water fund
 62  9 created in section 466B.51.
 62 10    Sec. 68.  Section 184.14, Code 2016, is amended to read as
 62 11 follows:
 62 12    184.14  Use of moneys ==== appropriation ==== audit.
 62 13    1.  All moneys deposited in the Iowa egg fund and transferred
 62 14 to the council as provided in section 184.13 are appropriated
 62 15 and shall be used for the administration of this chapter and
 62 16 for the payment of claims based upon obligations incurred in
 62 17 the performance of activities and functions set forth in this
 62 18 chapter.
 62 19    2.  a.  Moneys collected, deposited in the fund, and
 62 20 transferred to the council as provided in this chapter are
 62 21 subject to audit by the auditor of state. The auditor of state
 62 22 may seek reimbursement for the cost of the audit. The moneys
 62 23 transferred to the council shall be used by the council first
 62 24 for the payment of collection expenses, second for payment of
 62 25 the costs and expenses arising in connection with conducting
 62 26 referendums, third to perform the functions and carry out the
 62 27 duties of the council as provided in this chapter, and fourth
 62 28 for the cost of audits by the auditor of state.
 62 29    b.  Moneys The moneys remaining after the council is
 62 30 abolished and the imposition of an the assessment for direct
 62 31 use imposed pursuant to section 184.3 is terminated pursuant to
 62 32 a special referendum conducted pursuant to section 184.5 shall
 62 33 continue to be expended in accordance with this chapter until
 62 34 exhausted.
 62 35    3.  If the council is abolished and the assessment for direct
 63  1 use is terminated pursuant to a special referendum conducted
 63  2 under section 184.5, remaining moneys collected from the state
 63  3 assessment for clean water shall be transferred to the clean
 63  4 water fund created in section 466B.51. If the state assessment
 63  5 for clean water is terminated pursuant to a special referendum
 63  6 conducted under that section, remaining moneys collected from
 63  7 the state assessment shall be transferred to the clean water
 63  8 fund created in section 466B.51.
 63  9    4.  Except as expressly provided in this chapter, moneys
 63 10 collected from a state assessment for clean water shall not be
 63 11 used for any purpose other than to be transferred to the clean
 63 12 water fund created in section 466B.51.
 63 13    Sec. 69.  Section 184.18, Code 2016, is amended to read as
 63 14 follows:
 63 15    184.18  Purchasers outside Iowa.
 63 16    The secretary may enter into arrangements with purchasers
 63 17 from outside Iowa for payment of the assessment for direct use
 63 18 and the state assessment for clean water.
 63 19                           DIVISION VI
 63 20                  IOWA TURKEY MARKETING COUNCIL
 63 21    Sec. 70.  Section 184A.1, Code 2016, is amended by adding the
 63 22 following new subsection:
 63 23    NEW SUBSECTION.  1A.  "Assessment" means an excise tax
 63 24 imposed on the sale of turkeys which may include an assessment
 63 25 for direct use and a state assessment for clean water.
 63 26    Sec. 71.  Section 184A.1A, Code 2016, is amended to read as
 63 27 follows:
 63 28    184A.1A  Referendum conducted to establish an Iowa turkey
 63 29 marketing council and impose an assessment Referendums and
 63 30 assessments.
 63 31    1.  The department shall call and conduct a an initial
 63 32  referendum upon the department's receipt of a petition which
 63 33 is signed by at least twenty eligible voters requesting a
 63 34  an initial referendum to determine whether to establish an
 63 35 Iowa turkey marketing council as provided in section 184A.1B
 64  1 and impose establish an assessment for direct use imposed as
 64  2 provided in section 184A.2.
 64  3    2.  If a council is established, and upon receipt of a
 64  4 petition that otherwise complies with the requirements of
 64  5 subsection 1, the department shall call and conduct a special
 64  6 referendum to establish a state assessment for clean water as
 64  7 provided in section 184A.2.
 64  8    3.  Upon receipt of a petition that otherwise complies
 64  9 with the requirements of subsection 1, the secretary shall
 64 10 include as part of the initial referendum a separate special
 64 11 question whether to establish a state assessment for clean
 64 12 water described in subsection 2, if the secretary determines
 64 13 the inclusion of the special question is cost=effective or the
 64 14 petition demands inclusion.
 64 15    4.  In order to be an eligible voter under this section,
 64 16 a petitioner must be a qualified producer. The initial or
 64 17 special referendum shall be conducted by election within sixty
 64 18 days following receipt of the petition. The petitioners shall
 64 19 guarantee payment of the cost of the referendum by providing
 64 20 evidence of financial security as required by the department.
 64 21    2.  5.  The department shall give notice of the an initial
 64 22  referendum on the question whether to establish a council and
 64 23 to impose an assessment or special referendum by publishing
 64 24 the notice for a period of not less than five days in at least
 64 25 one newspaper of general circulation in the state, and for
 64 26 a similar period in other newspapers as prescribed by the
 64 27 department. The notice shall state the voting places, period
 64 28 of time for voting, the manner of voting, the amount of the
 64 29 assessment for direct use or the amount of the state assessment
 64 30 for clean water, and other information deemed necessary by the
 64 31 department. A referendum or special referendum shall not be
 64 32 commenced until five days after the last date of publication.
 64 33    3.  a.  6.  Each eligible voter who signs a statement
 64 34 certifying that the eligible voter is a qualified producer
 64 35 shall be an eligible voter under this section. An eligible
 65  1 voter is entitled to cast one vote in each initial referendum
 65  2 or special referendum conducted under this section. The
 65  3 department may conduct the initial referendum or special
 65  4 referendum by mail, electronic means, or a general meeting of
 65  5 eligible voters.
 65  6    b.  7.  At the close of the initial referendum or special
 65  7 referendum, the department shall count and tabulate the ballots
 65  8 cast.
 65  9    (1)8.  a.  If a majority of eligible voters who vote in
 65 10 the an initial referendum approve establishing the council and
 65 11 imposing an assessment for direct use under section 184A.2, a
 65 12 council and the assessment shall be established, and an the
 65 13  assessment shall be imposed commencing not more than sixty days
 65 14 following the initial referendum as determined by the council.
 65 15 The council and assessment for direct use shall continue for
 65 16 five years as provided in section 184A.12.
 65 17    b.  If a majority of eligible voters who vote in a special
 65 18 referendum approve establishing a state assessment for clean
 65 19 water, the state assessment shall be imposed commencing not
 65 20 more than sixty days following the special referendum as
 65 21 determined by the council.
 65 22    (2)  c.  If a majority of eligible voters who vote in the an
 65 23 initial referendum do not approve establishing the council and
 65 24 imposing the an assessment for direct use, the council shall
 65 25 not be established and an assessment shall not be established
 65 26 and imposed until another initial referendum is held conducted
 65 27  under this section and a majority of the eligible voters voting
 65 28 approve establishing a council and imposing the an assessment
 65 29 for direct use. If a an initial referendum should fail,
 65 30 another initial referendum shall not be held within conducted
 65 31 for at least one hundred eighty days from the date of the last
 65 32 such initial referendum.
 65 33    d.  If a majority of the voters do not approve establishing
 65 34 a state assessment for clean water, the state assessment shall
 65 35 not be established and imposed until the question is approved
 66  1 at a special referendum or as part of an initial referendum
 66  2 conducted pursuant to this section. If a special referendum
 66  3 or an initial referendum which includes the question whether
 66  4 to establish a state assessment for clean water should fail,
 66  5 the special referendum or an initial referendum which includes
 66  6 the question shall not be conducted for at least one hundred
 66  7 eighty days from the date of the last such special referendum
 66  8 or initial referendum which included the special question.
 66  9    4.  9.  Within thirty days after approval at the initial
 66 10  referendum to establish a council and to impose an assessment
 66 11 for direct use, the department shall organize the council as
 66 12 provided in section 184A.1B.
 66 13    Sec. 72.  Section 184A.1C, subsection 4, Code 2016, is
 66 14 amended to read as follows:
 66 15    4.  Enter into arrangements for the collection, and deposit,
 66 16 and use of the assessment for direct use or the collection,
 66 17 deposit, and transfer of the state assessment for clean water.
 66 18    Sec. 73.  Section 184A.1C, Code 2016, is amended by adding
 66 19 the following new subsection:
 66 20    NEW SUBSECTION.  7.  Cooperate with the division of soil
 66 21 conservation and water quality of the department of agriculture
 66 22 and land stewardship in doing all of the following:
 66 23    a.  Transferring moneys collected from the state assessment
 66 24 for clean water to the clean water fund created in section
 66 25 466B.51.
 66 26    b.  Being reimbursed for reasonable expenses incurred in
 66 27 conducting an initial or special referendum to establish,
 66 28 continue, or terminate a state assessment for clean water.
 66 29    Sec. 74.  Section 184A.2, Code 2016, is amended to read as
 66 30 follows:
 66 31    184A.2  Assessment Assessments ==== direct use ==== clean water.
 66 32    1.  If an assessment for direct use or a state assessment for
 66 33 clean water is approved by a majority of the eligible voters
 66 34 voting at a an initial referendum or special referendum as
 66 35 provided in section 184A.1A or 184A.12, all of the following
 67  1 shall apply:
 67  2    a.  The assessment for direct use or the state assessment
 67  3 for clean water shall be imposed on each turkey delivered for
 67  4 processing.
 67  5    b.  The council shall establish a rate of the assessment
 67  6 for direct use and the state assessment for clean water
 67  7 quality for each turkey delivered for processing. The
 67  8 council may establish different rates based on attributes
 67  9 or characteristics of turkeys. However, a rate shall not
 67 10 be more than three cents for each turkey delivered for
 67 11 processing.  The rate of the state assessment for clean water
 67 12 shall be established by the council at a rate not to exceed
 67 13 the assessment for direct use in effect when the referendum
 67 14 establishing the state assessment passes.
 67 15    c.  The assessment for direct use or the state assessment
 67 16 for clean water shall be imposed on the producer and collected
 67 17 at the time of delivery of a turkey to the processor. The
 67 18 assessment for direct use and the state assessment for clean
 67 19 water shall be deducted by the processor at the time of
 67 20 delivery from the price paid to the producer at the time of the
 67 21 sale to the processor. A processor shall remit assessments
 67 22  moneys collected from the assessment for direct use or
 67 23 the state assessment for clean water to the council on a
 67 24 monthly basis as provided by the council. The council shall
 67 25 deposit the remitted assessments in moneys collected from the
 67 26 assessment for direct use to the Iowa turkey fund as provided
 67 27 in section 184A.4.  The council shall transmit moneys collected
 67 28 from the state assessment for clean water to the clean water
 67 29 fund created in section 466B.51.
 67 30    2.  The council may enter into agreements with processors
 67 31 from outside this state for the payment of the assessment for
 67 32 direct use and the state assessment for clean water.
 67 33    3.  a.  The council shall provide for a refund of an
 67 34 assessment for direct use, and of a state assessment for
 67 35 clean water if established, according to rules adopted by the
 68  1 council.
 68  2    b.  The council shall publish and disseminate applications
 68  3 for refunds.  An application shall allow the applicant to elect
 68  4 whether the refund is for the assessment for direct use or a
 68  5 state assessment for clean water or both. The council shall
 68  6 not approve an application unless the application indicates the
 68  7 election.
 68  8    c.  The council shall transmit any approved application for a
 68  9 refund of the state assessment for clean water to the division
 68 10 of soil conservation and water quality of the department of
 68 11 agriculture and land stewardship which shall pay a refund to
 68 12 the producer in the same manner as the council pays a refund to
 68 13 the producer under paragraph "a".
 68 14    Sec. 75.  Section 184A.3, Code 2016, is amended to read as
 68 15 follows:
 68 16    184A.3  Assessment documentation Documentation for assessment
 68 17 and state assessment.
 68 18    A processor receiving turkeys for slaughter shall do all of
 68 19 the following:
 68 20    1.  At the time of payment to the producer, the processor
 68 21 shall sign and submit a receipt to the producer which includes
 68 22 the rate of the assessment for direct use imposed and the
 68 23 rate of the state assessment for clean water imposed and the
 68 24 amount of the assessment and state assessment for all turkeys
 68 25 delivered for processing.
 68 26    2.  Within a period established by rules adopted by the
 68 27 council, the processor shall regularly sign and submit to the
 68 28 council an invoice or other records required by the council to
 68 29 expedite collection of the assessment for direct use and the
 68 30 state assessment for clean water. The council may require that
 68 31 the processor submit a separate invoice for each purchase. The
 68 32 invoice shall be legibly printed and shall not be altered. An
 68 33 invoice shall include all of the following:
 68 34    a.  The name and address of the producer and the seller, if
 68 35 the seller's name is different from the producer.
 69  1    b.  The name and address of the processor.
 69  2    c.  The number of turkeys sold.
 69  3    d.  The date of the delivery.
 69  4    3.  The council may require the invoice to separately
 69  5 indicate the amount withheld for the assessment for direct use
 69  6 and the state assessment for clean water.
 69  7    Sec. 76.  Section 184A.4, Code 2016, is amended to read as
 69  8 follows:
 69  9    184A.4  Administration of moneys.
 69 10    1.  a.  The assessments Moneys from the assessment for direct
 69 11 use collected by the council as provided in section 184A.2
 69 12 shall be deposited in the office of the treasurer of state in
 69 13 a special fund known as the Iowa turkey fund. The department
 69 14 of administrative services shall transfer moneys from the
 69 15 fund to the council for deposit into the turkey council
 69 16 account established by the council pursuant to this section.
 69 17 The department shall transfer the moneys as provided in a
 69 18 resolution adopted by the council. However, the department is
 69 19 only required to transfer moneys once during each day and only
 69 20 during hours when the offices of the state are open.
 69 21    2.  b.  The council shall establish a turkey council
 69 22 account in a qualified financial institution. The council
 69 23 shall provide for the deposit of all of the following into the
 69 24 account:
 69 25    a.  (1)  The assessment for direct use collected, deposited
 69 26 in the Iowa turkey fund, and transferred to the council as
 69 27 provided in this section.
 69 28    b.  (2)  Moneys, other than assessments moneys collected from
 69 29 the state assessment for clean water, but including moneys in
 69 30 the form of gifts, rents, royalties, or license fees received
 69 31 by the council pursuant to section 184A.1C.
 69 32    2.  Except as expressly provided in this chapter, moneys
 69 33 collected from the state assessment for clean water under this
 69 34 section shall not be used for any purpose other than to be
 69 35 transferred to the clean water fund created in section 466B.51.
 70  1    Sec. 77.  Section 184A.6, Code 2016, is amended to read as
 70  2 follows:
 70  3    184A.6  Use of moneys in the turkey council account.
 70  4    1.  All moneys deposited in the turkey council account
 70  5 pursuant to section 184A.4 shall be used by the council for
 70  6 purposes of administering this chapter.
 70  7    2.  The council shall expend moneys from deposited in the
 70  8 turkey council account first for the payment of expenses for
 70  9 the collection of assessments moneys from the assessment for
 70 10 direct use and the state assessment for clean water, second
 70 11 for the payment of expenses related to conducting a special
 70 12  referendum as provided in conducted under section 184A.12,
 70 13 and third for the cost of performing audits by the auditor of
 70 14 state as required in section 184A.9. The council shall expend
 70 15 remaining moneys for market development, producer education,
 70 16 and the payment of refunds to producers as provided in this
 70 17 chapter.
 70 18    Sec. 78.  Section 184A.10, Code 2016, is amended to read as
 70 19 follows:
 70 20    184A.10  Referendum Referendums.
 70 21    Upon receipt of a petition signed by at least twenty=five
 70 22 producers requesting an initial referendum election to
 70 23 determine whether to impose the fee assessment for direct use
 70 24  as provided in section 184A.2 the secretary shall call and
 70 25 conduct an initial referendum.
 70 26    Sec. 79.  Section 184A.12, Code 2016, is amended to read as
 70 27 follows:
 70 28    184A.12  Referendum Special referendum conducted to continue
 70 29 the council and the imposition of the assessment establishment
 70 30 of assessments.
 70 31    1.  The council shall call for a special referendum to
 70 32 continue the council established pursuant to section 184A.1A,
 70 33 and to continue the assessment for direct use established
 70 34 pursuant to section 184A.2.
 70 35    2.  The council shall call for a special referendum to
 71  1 continue the state assessment for clean water if established
 71  2 pursuant to section 184A.1A.  The council may include as
 71  3 part of the special referendum to continue the council and
 71  4 the assessment for direct use under subsection 1, a separate
 71  5 special question whether to continue the state assessment for
 71  6 clean water.
 71  7    3.  The council shall call and conduct the a special
 71  8  referendum by election as provided in this section. The
 71  9 department shall oversee the conduct of the special referendum.
 71 10 The special referendum shall be conducted in the fifth year
 71 11 following the initial referendum establishing the council and
 71 12 the assessment for direct use as provided in section 184A.10.
 71 13    2.  4.  The following procedures shall apply to a special
 71 14  referendum conducted pursuant to this section:
 71 15    a.  The council shall publish a notice of the special
 71 16  referendum for a period of not less than five days in at least
 71 17 one newspaper of general circulation in the state and for
 71 18 a similar period in other newspapers as prescribed by the
 71 19 council. The notice shall state the voting places, period of
 71 20 time for voting, manner of voting, and other information deemed
 71 21 necessary by the council. A referendum shall not be commenced
 71 22 until five days after the last date of publication.
 71 23    b.  Upon signing a statement certifying to the council that
 71 24 a producer is an eligible voter, the producer is entitled to
 71 25 one vote in each special referendum conducted pursuant to
 71 26 this section. In order to be an eligible voter under this
 71 27 section, a producer must be a qualified producer who paid an
 71 28  the assessment for direct use and the state assessment for
 71 29 clean water, if established, in the year in which the special
 71 30  referendum is held conducted. The council may conduct the
 71 31 special referendum by mail, electronic means, or a general
 71 32 meeting of eligible voters. The council shall conduct the
 71 33 special referendum and count and tabulate the ballots filed
 71 34 during the special referendum within thirty days following the
 71 35 close of the special referendum.
 72  1    (1)  c.  If a majority of eligible voters who vote in the
 72  2 special referendum approves the continuation of continuing the
 72  3 council and the imposition of the assessment for direct use,
 72  4 the council and the imposition of the assessment shall continue
 72  5 as provided in this chapter.
 72  6    d.  If a majority of eligible voters who vote in the special
 72  7 referendum approves continuing the state assessment for clean
 72  8 water, the imposition of the state assessment shall continue
 72  9 for the same period as the assessment for direct use.
 72 10    (2)  e.  If a majority of eligible voters who vote in the
 72 11 special referendum does not approve continuing the council and
 72 12 the imposition of the assessment for direct use, the department
 72 13 shall terminate the collection of the assessment for direct
 72 14 use and the state assessment for clean water if established.
 72 15 The termination shall occur on the first day of the year for
 72 16 which the special referendum was to continue. The department
 72 17 shall terminate the activities of the council in an orderly
 72 18 manner as soon as practicable after the date that the special
 72 19  referendum was conducted. A subsequent initial referendum may
 72 20 be held conducted as provided in section 184A.1A.  However,
 72 21 the subsequent initial referendum shall not be held within
 72 22  conducted for at least one hundred eighty days from the date of
 72 23  that the last special referendum was conducted.
 72 24    f.  If a majority of eligible voters who vote in the special
 72 25 referendum does not approve continuing the state assessment
 72 26 for clean water, the department shall terminate the state
 72 27 assessment in the same manner as described in paragraph "e". A
 72 28 subsequent special referendum to establish a state assessment
 72 29 for clean water may be conducted as provided in section
 72 30 184A.1A.  However, the subsequent special referendum shall not
 72 31 be conducted within one hundred eighty days from the date that
 72 32 the last special referendum was conducted.
 72 33    Sec. 80.  Section 184A.12A, Code 2016, is amended to read as
 72 34 follows:
 72 35    184A.12A  Referendum Special referendum conducted to abolish
 73  1 the council and terminate the imposition of the assessment
 73  2  assessments.
 73  3    1.  A The department may call and conduct a special
 73  4  referendum may be called to abolish the council established
 73  5 pursuant to sections section 184A.1A and 184A.1B, and, to
 73  6 terminate the imposition of the assessment for direct use
 73  7  established pursuant to section 184A.2, and to terminate the
 73  8 state assessment for clean water established pursuant to
 73  9 section 184A.2.
 73 10    2.  a.  The department shall call and conduct, as provided
 73 11 in subsection 3, a special referendum to terminate the state
 73 12 assessment for clean water established pursuant to section
 73 13 184A.2.
 73 14    b.  The department shall include as part of a special
 73 15 referendum to continue the council and the assessment for
 73 16 direct use conducted under subsection 1, a separate special
 73 17 question to continue the state assessment for clean water, if
 73 18 the department determines the inclusion of the special question
 73 19 is cost=effective or a petition described in subsection 3
 73 20 demands inclusion.
 73 21    3.  The department shall call and conduct the special
 73 22  referendum upon the department's receipt of a petition
 73 23 requesting the special referendum or the inclusion of a special
 73 24 question as described in this section. The petition must be
 73 25 signed by at least twenty eligible voters or fifty percent of
 73 26 all eligible voters, whichever is greater. In order to be
 73 27 an eligible voter under this section, a producer must be a
 73 28 qualified producer who paid an the assessment for direct use
 73 29 and the state assessment for clean water, if established, in
 73 30 the year in which the special referendum is held conducted.
 73 31 The special referendum shall be conducted by election within
 73 32 sixty days following receipt of the petition. The petitioners
 73 33 shall guarantee payment of the cost of the special referendum
 73 34 by providing evidence of financial security as required by the
 73 35 department.
 74  1    2.  4.  The following procedures shall apply to a special
 74  2  referendum conducted pursuant to this section:
 74  3    a.  The department shall publish a notice of the special
 74  4  referendum for a period of not less than five days in at least
 74  5 one newspaper of general circulation in the state and for
 74  6 a similar period in other newspapers as prescribed by the
 74  7 department. The notice shall state the voting places, period
 74  8 of time for voting, manner of voting, and other information
 74  9 deemed necessary by the department. A special referendum
 74 10 shall not be commenced until five days after the last date of
 74 11 publication.
 74 12    b.  Upon signing a statement certifying to the department
 74 13 that a producer is an eligible voter, the producer is entitled
 74 14 to one vote in each special referendum conducted pursuant
 74 15 to this section. The department may conduct the special
 74 16  referendum by mail, electronic means, or a general meeting of
 74 17 eligible voters. The department shall conduct the special
 74 18  referendum and count and tabulate the ballots filed during the
 74 19 special referendum within thirty days following the close of
 74 20 the special referendum.
 74 21    (1)  c.  If a majority of eligible voters who vote in the
 74 22 special referendum approves the continuation of the council and
 74 23 the imposition of the assessment for direct use, the council
 74 24 and the imposition of the assessment shall continue as provided
 74 25 in this chapter.
 74 26    d.  If a majority of eligible voters who vote in the special
 74 27 referendum approves the continuation of the state assessment
 74 28 for clean water, the state assessment shall continue for the
 74 29 same period as the assessment for direct use.
 74 30    (2)  e.  If a majority of eligible voters who vote in the
 74 31 special referendum does not approve continuing the council and
 74 32 the imposition of the assessment for direct use, the department
 74 33 shall terminate the collection of the assessment for direct use
 74 34  on the first day of the year for which the special referendum
 74 35 was to continue. The department shall terminate the activities
 75  1 of the council in an orderly manner as soon as practicable
 75  2 after the special referendum. A subsequent initial referendum
 75  3 may be held conducted as provided in section 184A.1A.  However,
 75  4 the subsequent initial referendum shall not be held within
 75  5  conducted for at least one hundred eighty days from the date of
 75  6  that the last special referendum was conducted.
 75  7    f.  If a majority of eligible voters who vote in the special
 75  8 referendum does not approve continuing the state assessment
 75  9 for clean water, the department shall terminate the collection
 75 10 of the state assessment in the same manner as described in
 75 11 paragraph "e". A subsequent special referendum to establish a
 75 12 state assessment for clean water may be called and conducted
 75 13 under section 184A.1A, or a special question to establish the
 75 14 state assessment and included as part of a subsequent initial
 75 15 referendum may be called and conducted under that section.
 75 16 However, the subsequent special referendum or subsequent
 75 17 initial referendum that includes the special question shall
 75 18 not be conducted for at least one hundred eighty days from the
 75 19 date that the last special referendum terminating the state
 75 20 assessment was conducted.
 75 21                          DIVISION VII
 75 22                    IOWA SOYBEAN ASSOCIATION
 75 23    Sec. 81.  Section 185.1, subsection 17, Code 2016, is amended
 75 24 to read as follows:
 75 25    17.  "State assessment" or "assessment" means an excise tax
 75 26 on each bushel of soybeans marketed in this state which is
 75 27 imposed pursuant to a any of the following:
 75 28    a.  A state assessment for direct use pursuant to a
 75 29  promotional order as provided in this chapter.
 75 30    b.  A state assessment for clean water.
 75 31    Sec. 82.  Section 185.1A, Code 2016, is amended to read as
 75 32 follows:
 75 33    185.1A  Recognition of Iowa soybean association.
 75 34    1.  The corporation known as the Iowa soybean association
 75 35 incorporated under the laws of this state shall be entitled
 76  1 to the benefits of this chapter by filing each year with the
 76  2 secretary a verified proof of its organization, the names
 76  3 of its officers, and any other information required by the
 76  4 secretary.
 76  5    2.  The Iowa soybean association is a qualified state soybean
 76  6 board for purposes of administering a national assessment.
 76  7 For purposes of this chapter, "association" shall include a
 76  8 successor qualified state soybean board or other entity that is
 76  9 recognized by federal law to administer the national assessment
 76 10 in Iowa.
 76 11    Sec. 83.  Section 185.2, Code 2016, is amended to read as
 76 12 follows:
 76 13    185.2  Petition for election Referendums.
 76 14    1.  Upon receipt of a petition signed by at least five
 76 15 hundred producers requesting an initial referendum election
 76 16  to determine whether a promotional order shall be placed in
 76 17 effect, the secretary shall call an the initial referendum
 76 18 election to be conducted within sixty days following receipt
 76 19 of the petition. Producers shall vote by written ballot in
 76 20 the manner provided by this chapter for an initial referendum
 76 21 elections.
 76 22    2.  a.  If a promotional order is placed into effect, and
 76 23 upon receipt of a petition that otherwise complies with the
 76 24 requirements of this section, the secretary shall conduct a
 76 25 special referendum to establish a state assessment for clean
 76 26 water. The special referendum shall be conducted in the same
 76 27 manner as an initial referendum described in subsection 1.
 76 28    b.  Upon receipt of a petition that otherwise complies with
 76 29 the requirements of this section, the secretary shall include
 76 30 as part of the initial referendum a separate special question
 76 31 whether to establish and impose a state assessment for clean
 76 32 water described in this section, if the secretary determines
 76 33 the inclusion of the special question is cost=effective or the
 76 34 petition demands inclusion.
 76 35    Sec. 84.  Section 185.11, Code 2016, is amended by adding the
 77  1 following new subsection:
 77  2    NEW SUBSECTION.  5.  Cooperate with the division of soil
 77  3 conservation and water quality of the department of agriculture
 77  4 and land stewardship in doing all of the following:
 77  5    a.  Transferring moneys collected from the state assessment
 77  6 for clean water to the clean water fund created in section
 77  7 466B.51.
 77  8    b.  Being reimbursed for reasonable expenses incurred in
 77  9 conducting an initial or special referendum to establish,
 77 10 continue, or terminate a state assessment for clean water.
 77 11    Sec. 85.  Section 185.13, subsection 4, Code 2016, is amended
 77 12 to read as follows:
 77 13    4.  Enter into arrangements for collection of the state
 77 14 assessment for direct use and any state assessment for clean
 77 15 water imposed on soybeans marketed in this state.
 77 16    Sec. 86.  Section 185.16, Code 2016, is amended to read as
 77 17 follows:
 77 18    185.16  Notice of referendum.
 77 19    1.  Notice of a referendum election to initiate or extend a
 77 20 promotional order shall be given by publication in a newspaper
 77 21 of general circulation in this state at least ten days prior
 77 22 to the date of the referendum and in any other reasonable
 77 23 manner as may be determined by the secretary for the initial
 77 24 referendum and by the board for extension of the promotional
 77 25 order.
 77 26    2.  Notice of a special referendum to establish or continue
 77 27 a state assessment for clean water shall be given in the same
 77 28 manner as described in subsection 1.
 77 29    Sec. 87.  Section 185.17, Code 2016, is amended to read as
 77 30 follows:
 77 31    185.17  Contents of notice.
 77 32    The A notice of referendum described in section 185.16 shall
 77 33 set forth the period of time for voting, voting places and such
 77 34 other information as the secretary may deem necessary in an
 77 35 initial referendum or special referendum. The board shall make
 78  1 such determinations in any subsequent initial referendum or
 78  2 special referendum.
 78  3    Sec. 88.  Section 185.18, Code 2016, is amended to read as
 78  4 follows:
 78  5    185.18  Counting.
 78  6    At the close of a referendum voting period, the secretary
 78  7 shall count and tabulate the ballots cast during the referendum
 78  8  period of the initial referendum or special referendum.
 78  9    Sec. 89.  Section 185.20, Code 2016, is amended to read as
 78 10 follows:
 78 11    185.20  Producers only to vote.
 78 12    Only producers are eligible to vote in an election for
 78 13 directors, or a an initial referendum, election or a special
 78 14 referendum, and only in the district in which they reside.
 78 15 A producer shall sign an affidavit at the time of voting
 78 16 certifying the producer's eligibility to vote. Each qualified
 78 17 producer shall be entitled to one vote.
 78 18    Sec. 90.  Section 185.21, Code 2016, is amended to read as
 78 19 follows:
 78 20    185.21  Assessment State assessments.
 78 21    1.  A state assessment which for direct use that is adopted
 78 22  established upon the initiation of a promotional order shall
 78 23 be collected imposed during the effective period of the
 78 24 promotional order, and shall be of no force or effect upon
 78 25 termination of the promotional order.
 78 26    2.  a.  The state assessment for direct use collected as part
 78 27 of a promotional order shall be paid into the soybean promotion
 78 28 fund established in section 185.26.
 78 29    b.  The state assessment for clean water if established
 78 30 pursuant to section 185.2 or continued pursuant to section
 78 31 185.25 shall be collected by the board and may be deposited
 78 32 into a qualified financial institution until transferred to the
 78 33 clean water fund created in section 466B.51.
 78 34    3.  The rate of the state assessment for direct use
 78 35 established as part of promotional order shall be imposed as
 79  1 follows:
 79  2    a.  If the national assessment is being collected, the rate
 79  3 of the state assessment for direct use shall be one=quarter of
 79  4 one percent of the net market price of the soybeans marketed
 79  5 in this state.
 79  6    b.  If the national assessment is not being collected, the
 79  7 rate of the state assessment for direct use shall be one=half
 79  8 of one percent of the net market price of soybeans marketed in
 79  9 this state.
 79 10    4.  The rate of the state assessment for clean water shall
 79 11 be imposed as follows:
 79 12    a.  If the national assessment is being collected, the rate
 79 13 of the state assessment for clean water shall be established
 79 14 by the board at a rate not to exceed the combined rate of the
 79 15 state assessment for direct use and the national assessment as
 79 16 described in subsection 3, paragraph "a".
 79 17    b.  If the national assessment is not being collected,
 79 18 the rate of the state assessment for clean water shall be
 79 19 established by the board at a rate not to exceed the rate of
 79 20 the state assessment for direct use as described in subsection
 79 21 3, paragraph "b".
 79 22    Sec. 91.  Section 185.22, Code 2016, is amended to read as
 79 23 follows:
 79 24    185.22  Promotional order Invoice.
 79 25    1.  After a promotional order has been issued, the first
 79 26 purchaser at the time of payment for soybeans shall show the
 79 27 total amount of the state assessment for direct use, and the
 79 28 state assessment for clean water, deducted from the sale on the
 79 29 purchase invoice.
 79 30    2.  The board may require the invoice to separately indicate
 79 31 the amount withheld for the state assessment for direct use
 79 32 and the state assessment for clean water. The invoice may
 79 33 correspond to any invoice required to collect the national
 79 34 assessment.
 79 35    Sec. 92.  Section 185.23, Code 2016, is amended to read as
 80  1 follows:
 80  2    185.23  Deduction of assessment.
 80  3    The state assessment for direct use and any state assessment
 80  4 for clean water shall be deducted from the purchase price of
 80  5 soybeans at the time of sale, and forwarded to the board by the
 80  6 first purchaser in the manner and at intervals determined by
 80  7 the board.
 80  8    Sec. 93.  Section 185.24, Code 2016, is amended to read as
 80  9 follows:
 80 10    185.24  Termination of a promotional order.
 80 11    1.  If a promotional order is not extended as determined
 80 12 by a special referendum, the secretary and the board shall
 80 13 terminate the promotional order in an orderly manner as soon
 80 14 as practicable.  The termination of the promotional order
 80 15 shall terminate the state assessment for direct use. After
 80 16 all moneys collected from the state assessment for direct use
 80 17  are expended, the board shall remain in existence as provided
 80 18 in its articles of incorporation or bylaws. The directors
 80 19 shall no longer be elected as required in this chapter. The
 80 20 ex officio directors shall no longer serve on the board. The
 80 21 board shall cease to administer this chapter, and the board
 80 22 shall no longer carry out its duties or exercise its powers
 80 23 as provided in this chapter. However, if a future initial
 80 24  referendum passes, the board shall be reorganized by the
 80 25 secretary and the directors then serving on the board shall be
 80 26 deemed to be the same directors who served on the board when
 80 27 the promotional order was terminated. The directors shall
 80 28 serve out their terms as though there had been no lapse of time
 80 29 between the two effective orders.
 80 30    2.  The termination of the promotional order shall terminate
 80 31 the state assessment for clean water. The board shall transfer
 80 32 any remaining moneys collected from the state assessment for
 80 33 clean water to the clean water fund created in section 466B.51.
 80 34    Sec. 94.  Section 185.25, Code 2016, is amended to read as
 80 35 follows:
 81  1    185.25  Special referendum referendums ==== producer petition
 81  2  petitions.
 81  3    1.  Upon receipt of a petition described in subsection 3,
 81  4 the secretary shall call a special referendum to extend the
 81  5 promotional order including continuing the state assessment for
 81  6 direct use as part of the promotional order.
 81  7    2.  a.  Upon receipt of a petition described in subsection 3,
 81  8 the secretary shall call a special referendum to continue the
 81  9 state assessment for clean water.
 81 10    b.  The secretary shall include as part of the special
 81 11 referendum conducted under subsection 1 a separate special
 81 12 question whether to continue the state assessment for clean
 81 13 water, if the secretary determines the inclusion of the special
 81 14 question is cost=effective or the petition demands inclusion.
 81 15    3.  The secretary shall call a special referendum described
 81 16 in this section not less than one hundred fifty nor more than
 81 17 two hundred forty days from a four=year anniversary of the
 81 18 effective date of an initial promotional order upon receipt
 81 19 of a petition, signed within that same period by a number of
 81 20 producers equal to or greater than one percent of the number of
 81 21 producers reported in the most recent United States census of
 81 22 agriculture, requesting a the special referendum to determine
 81 23 whether to extend the promotional order, and the secretary
 81 24 shall call a the special referendum to be conducted not earlier
 81 25 than thirty days before the four=year anniversary date.
 81 26    4.  a.  If the secretary determines that extension of
 81 27 the promotional order is not favored by a majority of the
 81 28 producers voting in the special referendum, the promotional
 81 29 order shall be terminated as provided in section 185.24.  The
 81 30 state assessment for clean water if established shall also
 81 31 be terminated. If the promotional order is terminated under
 81 32 this paragraph, another special referendum to reestablish the
 81 33 promotional order shall not be held within conducted for at
 81 34 least one hundred eighty days after the date that the most
 81 35 recent special referendum was conducted.
 82  1    b.  If the secretary determines that a continuance of the
 82  2 state assessment for clean water is not favored by a majority
 82  3 of the producers voting in the special referendum, the state
 82  4 assessment shall be terminated as provided in section 185.24.
 82  5 If the state assessment for clean water is terminated under
 82  6 this paragraph, another special referendum establishing the
 82  7 state assessment or another special referendum that includes a
 82  8 special question to establish the state assessment shall not be
 82  9 conducted within one hundred eighty days after the date that
 82 10 the last special referendum terminating the state assessment
 82 11 was conducted.
 82 12    5.  A succeeding special referendum shall be called by the
 82 13 secretary upon the petition of a number of producers equal
 82 14 to or greater than one percent of the number of producers
 82 15 reported in the most recent United States census of agriculture
 82 16 requesting a the special referendum, who shall guarantee the
 82 17 costs of the referendum.
 82 18    6.  a.  If no valid petition is received by the secretary
 82 19 within the time period described above in subsection 1, or if a
 82 20 petition is received but the special referendum to extend the
 82 21 promotional order passes, the promotional order shall continue
 82 22 in effect for four additional years from the anniversary of its
 82 23 effective date.
 82 24    b.  If no valid petition for a special referendum to
 82 25 continue the state assessment for clean water is received by
 82 26 the secretary within the time period described in subsection
 82 27 3, the state assessment shall continue in effect for four
 82 28 additional years from the anniversary of the effective date of
 82 29 the promotional order.
 82 30    Sec. 95.  NEW SECTION.  185.25A  Special referendum ==== change
 82 31 in state assessment rate for clean water.
 82 32    1.  If a national assessment is imposed and upon receipt
 82 33 of a petition that otherwise complies with the requirements
 82 34 of  section 185.25, the secretary shall conduct a special
 82 35 referendum to change the rate of the state assessment for
 83  1 clean water established by the board  at a rate not to exceed
 83  2 the combined rate of the national assessment and the state
 83  3 assessment for direct use as provided in section 185.21,
 83  4 subsection 3, paragraph "a".  The special referendum shall be
 83  5 conducted in the same manner as a special referendum conducted
 83  6 pursuant to section 185.25.  However, the special referendum
 83  7 may be conducted in the same manner and in conjunction with a
 83  8 referendum to change the rate of the national assessment, to
 83  9 the extent permitted by federal law.
 83 10    2.  If a national assessment is not imposed and upon receipt
 83 11 of a petition that otherwise complies with the requirements
 83 12 of section 185.25, the secretary shall conduct a special
 83 13 referendum to change the rate of the state assessment for clean
 83 14 water established by the board to a rate not to exceed the rate
 83 15 of the state assessment for direct use as provided in section
 83 16 185.21, subsection 3, paragraph "b". The special referendum
 83 17 shall be conducted in the same manner as a special referendum
 83 18 conducted pursuant to section 185.25.
 83 19    3.  If a special referendum or special question to change
 83 20 the rate of the state assessment for clean water does not pass,
 83 21 the result of the vote shall not affect the existence or period
 83 22 during which the state assessment is in effect.
 83 23    Sec. 96.  Section 185.26, Code 2016, is amended to read as
 83 24 follows:
 83 25    185.26  Administration of moneys.
 83 26    1.  a.  The Moneys from a state assessment for direct use
 83 27 imposed as part of a promotional order and collected by the
 83 28 board shall be deposited in a special fund known as the soybean
 83 29 promotion fund, in the office of the treasurer of state. The
 83 30 fund may also contain include any gifts or federal or state
 83 31 grant received by the board. Moneys The moneys collected,
 83 32 deposited into the fund, and transferred to the board, as
 83 33 provided in this chapter, shall be subject to audit by the
 83 34 auditor of state.
 83 35    b.  The department of administrative services shall
 84  1 transfer moneys from the fund to the board for deposit into an
 84  2 account known as the soybean checkoff account which shall be
 84  3 established by the board in a qualified financial institution.
 84  4 The department shall transfer the moneys into the account as
 84  5 provided in a resolution adopted by the board. However, the
 84  6 department is only required to transfer moneys once during each
 84  7 day and only during hours when the offices of the state are
 84  8 open.
 84  9    c.  From moneys collected, deposited, and transferred to the
 84 10 soybean checkoff account as provided in this section, the board
 84 11 shall first pay the costs of initial and special referendums,
 84 12 elections, and other expenses incurred in the administration of
 84 13 this chapter, before moneys may be expended to carry out the
 84 14 purposes of the board as provided in section 185.11. The board
 84 15 shall strictly segregate moneys in the soybean checkoff account
 84 16 from all other moneys of the board. Moneys in the soybean
 84 17 checkoff account shall be expended by the board exclusively for
 84 18 carrying out the purposes of the board as provided in section
 84 19 185.11. The account shall be subject to audit by the auditor
 84 20 of state.
 84 21    2.  Moneys from a state assessment for clean water collected
 84 22 by the board may be deposited in a qualified financial
 84 23 institution and shall be transferred to the clean water fund
 84 24 created in section 466B.51.
 84 25    2.  3.  The fiscal year of the association shall commence on
 84 26 October 1 and end on September 30.
 84 27    Sec. 97.  Section 185.27, Code 2016, is amended to read as
 84 28 follows:
 84 29    185.27  Refund of assessment.
 84 30    1.  a.  A producer who has sold soybeans and had the state
 84 31 assessment for direct use deducted from the sale price may, by
 84 32 application in writing to the board, secure a refund in the
 84 33 amount deducted. The refund shall be payable only when the
 84 34 application is made to the board within sixty days after the
 84 35 deduction.
 85  1    b.  A producer who has sold soybeans and had the state
 85  2 assessment for clean water deducted from the sale price may,
 85  3 by application in writing to the board, secure a refund of the
 85  4 amount deducted payable by the division of soil conservation
 85  5 and water quality of the department of agriculture and land
 85  6 stewardship.  The board shall forward approved applications to
 85  7 the division within sixty days after the deduction.
 85  8    2.  Application forms shall be given by the board to
 85  9 each first purchaser when requested and the first purchaser
 85 10 shall make the applications available to any producer. Each
 85 11 application for refund by a producer shall have attached
 85 12 thereto proof of assessment deducted. The proof of assessment
 85 13 may be in the form of a duplicate or certified copy of the
 85 14 purchase invoice by the first purchaser. The board shall
 85 15 have thirty days from the date the application for refund is
 85 16 received to remit the refund to the producer.  The form shall
 85 17 allow the applicant to elect whether the refund is for the
 85 18 state assessment for direct use or for the state assessment
 85 19 for clean water or both.  The board shall not approve an
 85 20 application unless the application indicates the election.
 85 21    Sec. 98.  Section 185.28, Code 2016, is amended to read as
 85 22 follows:
 85 23    185.28  Use of moneys ==== appropriation.
 85 24    1.  All moneys collected, deposited, and transferred to the
 85 25 board as provided in this chapter, are appropriated and shall
 85 26 be used for the administration of this chapter by the board and
 85 27 for the payment of claims by the board based upon obligations
 85 28 incurred in the performance of board activities and functions
 85 29 provided in this chapter.
 85 30    2.  Except as expressly provided in this chapter, moneys
 85 31 collected from the state assessment for clean water under this
 85 32 section shall not be used for any purpose other than to be
 85 33 transferred to the clean water fund created in section 466B.51.
 85 34    Sec. 99.  Section 185.29, Code 2016, is amended to read as
 85 35 follows:
 86  1    185.29  Remission of remaining moneys.
 86  2    1.  After the board has paid the costs of elections,
 86  3 referendum, necessary board expenses, and administrative costs,
 86  4 the remaining moneys collected, deposited in the soybean
 86  5 promotion fund, and transferred to the soybean checkoff account
 86  6 as provided in section 185.26 shall be expended by the board as
 86  7 is necessary to carry out its purposes as provided in section
 86  8 185.11.
 86  9    2.  Notwithstanding subsection 1, moneys collected from
 86 10 a state assessment for clean water by the board shall be
 86 11 transferred to the clean water fund created in section 466B.51.
 86 12    Sec. 100.  Section 185.33, Code 2016, is amended to read as
 86 13 follows:
 86 14    185.33  Report.
 86 15    The board shall each year prepare and submit a report
 86 16 summarizing the activities of the board under this chapter to
 86 17 the auditor of state and the secretary of agriculture. The
 86 18 report shall show all income, expenses, and other relevant
 86 19 information concerning fees state assessments for direct use
 86 20  collected and expended under the provisions of this chapter.
 86 21                          DIVISION VIII
 86 22                    IOWA CORN PROMOTION BOARD
 86 23    Sec. 101.  Section 185C.1, subsection 17, Code 2016, is
 86 24 amended to read as follows:
 86 25    17.  "State assessment" means a state excise tax on each
 86 26 bushel of corn marketed in this state which is imposed as part
 86 27 of a promotional order to administer this chapter pursuant to a
 86 28 state assessment for direct use or a state assessment for clean
 86 29 water.
 86 30    Sec. 102.  Section 185C.2, Code 2016, is amended to read as
 86 31 follows:
 86 32    185C.2  Petition for election Referendums.
 86 33    1.  Upon receipt of a petition signed by at least five
 86 34 hundred producers requesting an initial referendum election
 86 35  to determine whether a promotional order shall be placed in
 87  1 effect, the secretary shall call an initial referendum election
 87  2  to be conducted within sixty days following receipt of the
 87  3 petition. Producers shall vote by written ballot in the manner
 87  4 provided by this chapter for referendum elections referendums
 87  5 to approve the passage of a promotional order.
 87  6    2.  a.  If a promotional order is placed into effect, and
 87  7 upon receipt of a petition that otherwise complies with the
 87  8 requirements of subsection 1, the secretary shall conduct a
 87  9 special referendum to establish a state assessment for clean
 87 10 water.
 87 11    b.  Upon receipt of a petition that otherwise complies with
 87 12 the requirements of subsection 1, the secretary shall include
 87 13 as part of the initial referendum a separate special question
 87 14 whether to establish a state assessment for clean water as
 87 15 described in this section, if the secretary determines the
 87 16 inclusion of the special question is cost=effective or the
 87 17 petition demands inclusion.
 87 18    Sec. 103.  Section 185C.3, Code 2016, is amended to read as
 87 19 follows:
 87 20    185C.3  Establishment of corn promotion board.
 87 21    If a majority of the producers voting in the an initial
 87 22  referendum election conducted pursuant to section 185C.2
 87 23  approve the passage of the promotional order, an Iowa corn
 87 24 promotion board shall be established.
 87 25    Sec. 104.  Section 185C.11, subsection 1, Code 2016, is
 87 26 amended by adding the following new paragraph:
 87 27    NEW PARAGRAPH.  j.  Cooperate with the division of soil
 87 28 conservation and water quality of the department of agriculture
 87 29 and land stewardship in doing all of the following:
 87 30    (1)  Transferring moneys collected from the state assessment
 87 31 for clean water to the clean water fund created in section
 87 32 466B.51.
 87 33    (2)  Being reimbursed for reasonable expenses incurred
 87 34 in conducting an initial or special referendum to establish,
 87 35 continue, or terminate a state assessment for clean water.
 88  1    Sec. 105.  Section 185C.11A, Code 2016, is amended by adding
 88  2 the following new subsection:
 88  3    NEW SUBSECTION.  5.  The board shall not expend moneys
 88  4 collected from the state assessment for clean water to support
 88  5 the program.
 88  6    Sec. 106.  Section 185C.15, Code 2016, is amended to read as
 88  7 follows:
 88  8    185C.15  Term of promotional order ==== automatic extension.
 88  9    A promotional order shall be effective for four years from
 88 10 its effective date. Upon the date that an the promotional
 88 11  order is due to expire the order shall automatically be
 88 12 extended for an additional four years from the date that the
 88 13 order or last extension would otherwise expire, except as
 88 14 provided in section 185C.24.  A state assessment for clean
 88 15 water shall continue for the same period as the promotional
 88 16 order unless the state assessment for clean water is terminated
 88 17 as provided in section 185C.24.
 88 18    Sec. 107.  Section 185C.21, Code 2016, is amended to read as
 88 19 follows:
 88 20    185C.21  State assessment assessments.
 88 21    1.  The board shall determine and set the rate of the state
 88 22 assessment rate for direct use as part of the promotional
 88 23 order. State assessments A state assessment for direct use
 88 24  collected pursuant to the promotional order shall be paid
 88 25 into the corn promotion fund established in section 185C.26.
 88 26 Except as provided in subsection 2 subsections 2 and 3, a state
 88 27 assessment shall not exceed one=quarter of one cent per bushel
 88 28 upon corn marketed in this state.
 88 29    2.  Upon request of the board, the secretary shall call
 88 30 a special referendum for producers to vote on whether to
 88 31 authorize an increase in the rate of the state assessment
 88 32 for direct use above one=quarter of one cent per bushel,
 88 33 notwithstanding subsection 1. The special referendum shall be
 88 34 conducted as provided in this chapter for referendum elections
 88 35  referendums. However, the special referendum shall not affect
 89  1 the existence or length of the promotional order in effect. If
 89  2 a majority of the producers voting in the special referendum
 89  3 approve the increase, the board may increase the assessment to
 89  4 the amount approved in the special referendum. The board shall
 89  5 establish the effective date of a rate change. However, the
 89  6 rate of a state assessment for direct use shall not exceed a
 89  7 scheduled maximum rate determined as follows:
 89  8    a.  Before September 1, 2014, one cent.
 89  9    b.  For each marketing year of the period beginning September
 89 10 1, 2014, and ending August 31, 2019, two cents.
 89 11    c.  For each marketing year beginning on and after September
 89 12 1, 2019, three cents.
 89 13    3.  The rate of the state assessment for clean water shall
 89 14 be established by the board not to exceed the rate of the
 89 15 state assessment for direct use in effect on the date that the
 89 16 special referendum establishing the state assessment for clean
 89 17 water is approved.
 89 18    4.  a.  Upon request of the board, the secretary shall
 89 19 call a special referendum for producers to vote on whether to
 89 20 authorize an increase in the state assessment for clean water
 89 21 to be established by the board at a rate not to exceed the rate
 89 22 in effect under subsection 2.  The special referendum shall be
 89 23 conducted in the same manner as provided in that subsection.
 89 24    b.  Upon request of the board, the secretary shall include
 89 25 as part of the special referendum conducted under subsection
 89 26 2 a separate special question whether to increase the rate
 89 27 of the state assessment for clean water to be established by
 89 28 the board at a rate not to exceed the rate of the proposed
 89 29 increased amount of the state assessment for direct use, if the
 89 30 secretary determines the inclusion of the special question is
 89 31 cost=effective or the request demands inclusion.
 89 32    Sec. 108.  Section 185C.22, Code 2016, is amended to read as
 89 33 follows:
 89 34    185C.22  State assessment assessments on purchase invoice.
 89 35    1.  After a promotional order has been issued, the first
 90  1 purchaser at the time of payment for corn shall show the
 90  2 total amount of state assessment for direct use and the state
 90  3 assessment for clean water deducted from the sale on the
 90  4 purchase invoice.
 90  5    2.  The board may require the invoice to separately indicate
 90  6 the amount withheld for the assessment for direct use and the
 90  7 state assessment for clean water.  The invoice may correspond
 90  8 to any invoice required to collect the federal assessment
 90  9 pursuant to section 185C.25A.
 90 10    Sec. 109.  Section 185C.24, Code 2016, is amended to read as
 90 11 follows:
 90 12    185C.24  Cancellation, and suspension, and termination.
 90 13    1.  The board shall be suspended and board operations and
 90 14 terms of members shall cease upon either of the following
 90 15 events:
 90 16    a.  The state assessment for direct use is terminated
 90 17 pursuant to section 185C.25.
 90 18    b.  The state assessment for direct use is suspended pursuant
 90 19 to section 185C.25A.
 90 20    2.  However, notwithstanding subsection 1, the board shall
 90 21 continue to operate until proceeds remaining in the corn
 90 22 promotion fund are disbursed. Disbursement shall be made as
 90 23 provided for payment of moneys under section 185C.26.
 90 24    3.  If a state assessment for direct use and the federal
 90 25 assessment is not imposed, the board shall continue to transfer
 90 26 remaining moneys collected from the state assessment for clean
 90 27 water to the clean water fund created in section 466B.51.
 90 28    3.  4.  The secretary shall order that the board be
 90 29 reconstituted upon either of the following events:
 90 30    a.  Recommencement of the promotional order, pursuant to
 90 31 section 185C.25.
 90 32    b.  Termination of the promotional order's suspension,
 90 33 pursuant to section 185C.25A.
 90 34    4.  5.  Until the board is reconstituted under section
 90 35 185C.8, the secretary has the powers to perform the duties of
 91  1 the board as provided in this chapter, including the collection
 91  2 of the state assessment for direct use at the rate in effect
 91  3 on the date when collection of the state assessment for direct
 91  4 use was terminated pursuant to section 185C.25. However, the
 91  5 secretary shall not expend funds moneys collected from the
 91  6  state assessment for direct use.
 91  7    6.  Until the board is reconstituted, the secretary may
 91  8 collect the state assessment for clean water imposed at
 91  9 the same rate when the state assessment for clean water was
 91 10 terminated.  The secretary shall transfer the collected moneys
 91 11 to the clean water fund created in section 466B.51.
 91 12    Sec. 110.  Section 185C.25, Code 2016, is amended to read as
 91 13 follows:
 91 14    185C.25  Effective period of promotional order and state
 91 15 assessments ==== special referendums ==== termination.
 91 16    1.  a.  A state assessment for direct use adopted upon the
 91 17 initiation of a promotional order shall be collected during the
 91 18 effective period of the order, and shall have no effect upon
 91 19 termination of the promotional order.
 91 20    b.  A state assessment for clean water if established shall
 91 21 be collected during the effective period of the promotional
 91 22 order, and shall have no effect upon the termination of the
 91 23 promotional order. However, the state assessment for clean
 91 24 water shall still be collected during any period in which a
 91 25 federal assessment is collected, unless the state assessment is
 91 26 terminated under this section.
 91 27    2.  Upon adoption or extension of the promotional order, the
 91 28 order shall be effective for the period described in section
 91 29 185C.15 unless the order is terminated as provided in this
 91 30 section or suspended as provided in section 185C.25A.
 91 31    2.  3.  The secretary shall call a special referendum to
 91 32 terminate the promotional order including the state assessment
 91 33 for direct use imposed as part of the promotional order, and
 91 34 the state assessment for clean water if established.
 91 35    4.  a.  The secretary shall call, as provided in subsection
 92  1 5, a special referendum to terminate the state assessment for
 92  2 clean water if established.
 92  3    b.  The secretary shall include as part of the special
 92  4 referendum conducted under subsection 3,  a separate special
 92  5 question whether to terminate the state assessment for clean
 92  6 water, if the secretary determines the inclusion of the
 92  7 special question is cost=effective or the petition described in
 92  8 subsection 5 demands inclusion.
 92  9    5.  The secretary shall call a special referendum under this
 92 10 section if all the following conditions are met:
 92 11    a.  The secretary receives a petition signed by at least five
 92 12 percent of the state's producers reported in the most recent
 92 13 United States census of agriculture.
 92 14    b.  The petition is signed by at least five percent of the
 92 15 state's producers residing in each of five districts according
 92 16 to the most recent United States census of agriculture.
 92 17    c.  The secretary receives the petition not less than one
 92 18 hundred fifty days from the date that the order is due to
 92 19 expire, but receives the petition not more than two hundred
 92 20 forty days before the date that the order is due to expire.
 92 21    3.6.  a.  The secretary shall conduct the election as
 92 22 provided for a special referendum to terminate the promotional
 92 23 order including the state assessment for direct use and the
 92 24 state assessment for clean water in the same manner as an
 92 25 initial referendum conducted under this chapter, including
 92 26 sections 185C.16 through 185C.20.
 92 27    b.  The secretary shall conduct the special referendum to
 92 28 terminate the state assessment for clean water in the same
 92 29 manner as an initial referendum conducted under this chapter,
 92 30 including sections 185C.16 through 185C.20.
 92 31    7.  a.  If upon counting and tabulating the ballots, the
 92 32 secretary determines that a majority of voting producers favor
 92 33  favors termination of the state assessment for direct use, the
 92 34 secretary, in cooperation with the board, shall terminate the
 92 35 state assessment for direct use in an orderly manner as soon
 93  1 as practicable.
 93  2    b.  If upon counting and tabulating the ballots, the
 93  3 secretary determines that a majority of voting producers favors
 93  4 termination of the state assessment for clean water, the
 93  5 secretary, in cooperation with the board, shall terminate the
 93  6 state assessment for clean water in an orderly manner as soon
 93  7 as practicable.
 93  8    4.8.  a.  If the a state assessment for direct use is
 93  9 terminated, another an initial referendum shall not be held
 93 10  conducted for at least one hundred eighty days from the date
 93 11 that the state assessment is terminated.
 93 12    b.  If a state assessment for clean water is terminated,
 93 13 another special referendum or another special referendum which
 93 14 includes a special question to establish a state assessment
 93 15 shall not be conducted within one hundred eighty days from the
 93 16 date that the state assessment is terminated.
 93 17    9.  A succeeding special referendum to restore the state
 93 18  assessment for direct use shall be called by the secretary
 93 19 upon receipt of a petition of at least five hundred producers
 93 20 requesting a the special referendum. The petitioners shall
 93 21 guarantee the costs of the succeeding referendum. The
 93 22 secretary shall conduct the election special referendum as
 93 23 provided for a an initial referendum under this chapter
 93 24 section 185C.2 not later than one hundred fifty days after
 93 25 the secretary receives the petition. If a referendum held
 93 26  conducted pursuant to this subsection is approved by producers,
 93 27 the promotional order shall commence no later than two hundred
 93 28 ten days following the date that the petition is received by
 93 29 the secretary.
 93 30    10.  a.  A succeeding special referendum to restore the state
 93 31 assessment for clean water shall be called by the secretary
 93 32 upon petition that otherwise complies with a petition to
 93 33 restore the state assessment for direct use under subsection 9.
 93 34 The secretary shall conduct the succeeding special referendum
 93 35 in the same manner as a succeeding special referendum conducted
 94  1 under that subsection.  If a special referendum conducted
 94  2 pursuant to this paragraph is approved by producers, the state
 94  3 assessment for clean water shall commence not later than two
 94  4 hundred ten days following the date that the petition is
 94  5 received by the secretary.
 94  6    b.  Upon receipt of a petition that otherwise complies
 94  7 with a petition to restore the state assessment for direct
 94  8 use under subsection 9, the secretary shall include as part
 94  9 of the succeeding special referendum conducted under that
 94 10 subsection a separate special question whether to restore the
 94 11 state assessment for clean water, if the secretary determines
 94 12 the inclusion of the special question is cost=effective or the
 94 13 request demands inclusion.
 94 14    Sec. 111.  Section 185C.25A, Code 2016, is amended to read
 94 15 as follows:
 94 16    185C.25A  Collection of federal assessment.
 94 17    1.  a.  Prior to the collection of the federal assessment,
 94 18 the board may approve the continued collection of the state
 94 19 assessment for direct use as part of the promotional order
 94 20  during the collection of the federal assessment.
 94 21    b.  If a federal assessment is collected, the state
 94 22 assessment for clean water, if established, shall continue to
 94 23 be imposed until terminated under section 185C.25.
 94 24    2.  If the collection of amount collected from the state
 94 25 assessment for direct use would be in addition to, and not an
 94 26 offset against, the collection of amount collected from the
 94 27 federal assessment, the board shall suspend the collection
 94 28 of the state assessment. On the date of the termination or
 94 29 suspension of the federal assessment, the promotional order
 94 30 shall recommence and the suspension of the state assessment for
 94 31 direct use shall terminate.  The termination or suspension of
 94 32 the federal assessment shall not affect the state assessment
 94 33 for clean water.
 94 34    Sec. 112.  Section 185C.26, Code 2016, is amended to read as
 94 35 follows:
 95  1    185C.26  Deposit of moneys ==== corn promotion fund ====
 95  2 administration of moneys.
 95  3    1.  a.  A Moneys from a state assessment for direct use
 95  4 imposed as part of a promotional order and collected by the
 95  5 board from a sale of corn shall be deposited in the office of
 95  6 the treasurer of state in a special fund known as the corn
 95  7 promotion fund. The fund may also include any gifts, rents,
 95  8 royalties, interest, license fees, or a federal or state grant
 95  9 received by the board. Moneys The moneys collected, deposited
 95 10 in the corn promotion fund, and transferred to the board as
 95 11 provided in this chapter shall be subject to audit by the
 95 12 auditor of state. The auditor of state may seek reimbursement
 95 13 for the cost of the audit from moneys deposited in the corn
 95 14 promotion fund as provided in this chapter.
 95 15    b.  The department of administrative services shall transfer
 95 16 moneys from the corn promotion fund to the board for deposit
 95 17 into an account established by the board in a qualified
 95 18 financial institution. The department shall transfer the
 95 19 moneys as provided in a resolution adopted by the board.
 95 20 However, the department is only required to transfer moneys
 95 21 once during each day and only during hours when the offices of
 95 22 the state are open.
 95 23    c.  From moneys collected, the board shall first pay all
 95 24 the direct and indirect costs incurred by the secretary and
 95 25 the costs of initial and special referendums, elections, and
 95 26 other expenses incurred in the administration of this chapter,
 95 27 before moneys may be expended to carry out the purposes of this
 95 28 chapter as provided in section 185C.11.
 95 29    2.  Moneys from a state assessment for clean water collected
 95 30 by the board may be deposited in a qualified financial
 95 31 institution and shall be transferred to the clean water fund
 95 32 created in section 466B.51.
 95 33    Sec. 113.  Section 185C.27, Code 2016, is amended to read as
 95 34 follows:
 95 35    185C.27  Refund of assessment.
 96  1    1.  a.  A producer who has sold corn and had a state
 96  2 assessment for direct use deducted from the sale price, by
 96  3 application in writing to the board, may secure a refund in the
 96  4 amount deducted. The refund shall be payable only when the
 96  5 application shall have been made to the board within sixty days
 96  6 after the deduction.  The board shall have thirty days from the
 96  7 date the application for refund is received to remit the refund
 96  8 to the producer.
 96  9    b.  A producer who has sold corn and had the state
 96 10 assessment for clean water deducted from the sale price may,
 96 11 by application in writing to the board, secure a refund of the
 96 12 amount deducted payable by the division of soil conservation
 96 13 and water quality of the department of agriculture and land
 96 14 stewardship.  The board shall forward approved applications to
 96 15 the division within sixty days after the deduction. 
 96 16    2.  Application forms shall be given by the board to
 96 17 each first purchaser when requested and the first purchaser
 96 18 shall make the applications available to any producer. Each
 96 19 application for refund by a producer shall have attached to
 96 20 the application proof of the state assessment deducted. The
 96 21 proof of state assessment may be in the form of a duplicate
 96 22 or certified copy of the purchase invoice by the first
 96 23 purchaser. The board shall have thirty days from the date the
 96 24 application for refund is received to remit the refund to the
 96 25 producer.  The form shall allow the applicant to elect whether
 96 26 the refund is for the state assessment for direct use or the
 96 27 state assessment for clean water or both.  The board shall not
 96 28 approve an application unless the application indicates the
 96 29 election.
 96 30    3.  a.  The board may provide for refunds of a federal
 96 31 assessment as provided by federal law. Unless inconsistent
 96 32 with federal law, refunds shall be made under section 185C.26.
 96 33    b.  The board may provide for filing applications for a
 96 34 refund of the state assessment for direct use and the state
 96 35 assessment for clean water based on applicable procedures
 97  1 for the filing of applications for refunds of the federal
 97  2 assessment.
 97  3    Sec. 114.  Section 185C.29, subsection 1, Code 2016, is
 97  4 amended to read as follows:
 97  5    1.  After the direct and indirect costs incurred by the
 97  6 secretary and the costs of elections, referendums, necessary
 97  7 board expenses, and administrative costs have been paid, at
 97  8 least seventy=five percent of the remaining moneys from a
 97  9 state assessment for direct use shall be deposited in the corn
 97 10 promotion fund and shall be used to carry out the purposes of
 97 11 the board as provided in section 185C.11.
 97 12    Sec. 115.  Section 185C.33, Code 2016, is amended to read as
 97 13 follows:
 97 14    185C.33  Report.
 97 15    The board shall each year prepare and submit a report
 97 16 summarizing the activities of the board under this chapter to
 97 17 the auditor of state and the secretary of agriculture. The
 97 18 report shall show all income, expenses, and other relevant
 97 19 information concerning fees the state assessment for direct use
 97 20  collected and expended under the provisions of this chapter.
 97 21                           DIVISION IX
 97 22                        CLEAN WATER FUND
 97 23    Sec. 116.  NEW SECTION.  7D.10B  Payment to the clean water
 97 24 fund.
 97 25    If moneys are not sufficient to reimburse the department
 97 26 of agriculture or a commodity organization described in
 97 27 section 466B.51 for reasonable expenses incurred in conducting
 97 28 a referendum to establish, continue, or terminate a state
 97 29 assessment for clean water, the executive council may authorize
 97 30 as an expense paid from the appropriations addressed in section
 97 31 7D.29 the payment of an amount to the clean water fund created
 97 32 in section 466B.51.  However, not more than a total of one
 97 33 hundred thousand dollars shall be paid pursuant to this section
 97 34 to the fund at any one time to pay for expenses incurred in
 97 35 conducting a referendum.
 98  1    Sec. 117.  Section 466A.3, subsection 1, unnumbered
 98  2 paragraph 1, Code 2016, is amended to read as follows:
 98  3    A watershed improvement review board is established.  The
 98  4 board shall advise the clean water commission created in
 98  5 section 466B.52.
 98  6    Sec. 118.  Section 466A.3, subsection 4, unnumbered
 98  7 paragraph 1, Code 2016, is amended to read as follows:
 98  8    The watershed improvement review board shall carry out
 98  9 the purposes of this chapter as provided in section 466A.2,
 98 10 including by determining how moneys are to be expended from
 98 11 the watershed improvement fund and authorizing the expenditure
 98 12 of moneys from the fund. In carrying out those purposes, and
 98 13 acting upon direction of the clean water commission, the board
 98 14 shall do all of the following:
 98 15    Sec. 119.  Section 466A.5, Code 2016, is amended to read as
 98 16 follows:
 98 17    466A.5  Administration.
 98 18    1.  The division of soil conservation and water quality
 98 19 created within the department of agriculture and land
 98 20 stewardship pursuant to section 159.5 shall provide
 98 21 administrative support to the board.  The division shall
 98 22 administer this chapter under the oversight of the clean water
 98 23 commission created in section 466B.52.
 98 24    2.  Not more than one percent of the total moneys deposited
 98 25 in the general account of the watershed improvement fund on
 98 26 July 1 of a fiscal year or fifty thousand dollars, whichever is
 98 27 less, is appropriated each fiscal year to the division for the
 98 28 purposes of assisting the watershed improvement review board
 98 29 in administering this chapter.
 98 30    Sec. 120.  Section 466B.2, Code 2016, is amended by adding
 98 31 the following new subsections:
 98 32    NEW SUBSECTION.  01.  "Commission" means the clean water
 98 33 commission created in section 466B.52.
 98 34    NEW SUBSECTION.  2A.  "Iowa nutrient reduction strategy"
 98 35 means the latest version of the document entitled "Iowa
 99  1 Nutrient Reduction Strategy" initially presented in 2012 by the
 99  2 department of agriculture and land stewardship, the department
 99  3 of natural resources, and Iowa state university of science and
 99  4 technology.
 99  5    Sec. 121.  Section 466B.3, subsections 1 and 2, Code 2016,
 99  6 are amended to read as follows:
 99  7    1.  Council established.  A water resources coordinating
 99  8 council is established within the department of agriculture
 99  9 and land stewardship.  The council shall carry out the
 99 10 powers and duties described in this section in accordance
 99 11 with the policies and under the direction and supervision of
 99 12 the commission.  The council shall advise the commission as
 99 13 required by the commission.
 99 14    2.  Purpose.  The purpose of the council shall be to advise
 99 15 the commission regarding strategies and methods to preserve
 99 16 and protect Iowa's water resources, and to coordinate the
 99 17 management of those resources in a sustainable and fiscally
 99 18 responsible manner. In the pursuit of this purpose providing
 99 19 advice to the commission and acting in accordance with its
 99 20 policies, and under its direction and supervision, the
 99 21 council shall use an integrated approach to water resource
 99 22 management, recognizing that insufficiencies exist in current
 99 23 approaches and practices, as well as in funding sources and
 99 24 the utilization of funds. The integrated approach used by the
 99 25 council shall attempt to overcome old categories, labels, and
 99 26 obstacles with the primary goal of managing the state's water
 99 27 resources comprehensively rather than compartmentally.
 99 28    Sec. 122.  Section 466B.3, subsection 3, unnumbered
 99 29 paragraph 1, Code 2016, is amended to read as follows:
 99 30    The success of the council's efforts made under this section
 99 31  shall ultimately be measured by the following outcomes:
 99 32    Sec. 123.  Section 466B.3, subsection 6, paragraph c, Code
 99 33 2016, is amended to read as follows:
 99 34    c.  The council, acting in accordance with the policies and
 99 35 under the direction and supervision of the commission, shall
100  1 develop recommendations for policies and funding promoting a
100  2 watershed management approach to reduce the adverse impact
100  3 of future flooding on this state's residents, businesses,
100  4 communities, and soil and water quality. The council and the
100  5 commission shall consider policies and funding options for
100  6 various strategies to reduce the impact of flooding, including
100  7 but not limited to additional floodplain regulation; wetland
100  8 protection, restoration, and construction; the promulgation and
100  9 implementation of statewide storm water management standards;
100 10 conservation easements and other land management; perennial
100 11 ground cover and other agricultural conservation practices;
100 12 pervious pavement, bioswales, and other urban conservation
100 13 practices; and permanent or temporary water retention
100 14 structures. In developing recommendations, the council and
100 15 the commission shall consult with hydrological and land use
100 16 experts, representatives of cities, counties, drainage and
100 17 levee districts, agricultural interests, and soil and water
100 18 conservation districts, and other urban and regional planning
100 19 experts.
100 20    Sec. 124.  Section 466B.31, subsection 1, Code 2016, is
100 21 amended to read as follows:
100 22    1.  a.  A watershed planning advisory council is established
100 23 for purposes of assembling a diverse group of stakeholders
100 24 to review research and make recommendations to various state
100 25 entities regarding methods to protect water resources in the
100 26 state, assure an adequate supply of water, mitigate and prevent
100 27 floods, and coordinate the management of those resources in
100 28 a sustainable, fiscally responsible, and environmentally
100 29 responsible manner.
100 30    b.  The council shall carry out the powers and duties
100 31 described in this section in accordance with the policies
100 32 and under the direction and supervision of the commission.
100 33 The council shall advise the commission as required by the
100 34 commission.
100 35    c.  The advisory commission shall supervise the council may
101  1 seek in seeking input from councils of governments or other
101  2 organizations in the development of its recommendations. The
101  3 advisory council shall meet once a year and at other times as
101  4 deemed necessary to meet the requirements of this section.
101  5 The advisory council may appoint a task force to assist the
101  6 advisory council in completing its duties.
101  7    Sec. 125.  Section 466B.31, subsection 3, unnumbered
101  8 paragraph 1, Code 2016, is amended to read as follows:
101  9    By December 1 of each year, the watershed planning advisory
101 10 council with approval by the commission shall submit a report
101 11 to the governor, the general assembly, the department of
101 12 agriculture and land stewardship, the department of natural
101 13 resources, and the water resources coordinating council. The
101 14 report shall include recommendations regarding all of the
101 15 following:
101 16    Sec. 126.  Section 466B.42, Code 2016, is amended to read as
101 17 follows:
101 18    466B.42  Water quality initiative.
101 19    The division shall establish a A water quality initiative
101 20 is established in order to assess and reduce nutrients in this
101 21 state's watersheds, including subwatersheds, and regional
101 22 watersheds. The division commission shall establish oversee
101 23  and the division, acting in accordance with the policies
101 24 and under the direction and supervision of the commission,
101 25 shall administer the water quality initiative and advise
101 26 the commission as required by the commission.  As part of
101 27 the initiative, the division shall administer projects to
101 28 reduce nutrients in surface waters from nonpoint sources
101 29 in a scientific, reasonable, and cost=effective manner.
101 30 The commission and the division shall utilize a pragmatic,
101 31 strategic, and coordinated approach with the goal of
101 32 accomplishing reductions over time.
101 33    Sec. 127.  NEW SECTION.  466B.51  Clean water fund.
101 34    1.  A clean water fund is created in the state treasury
101 35 under the management and control of the clean water commission.
102  1 The clean water fund is composed of a general account, an
102  2 assessment account, and an expenditures account.
102  3    2.  The clean water fund's general account includes moneys
102  4 appropriated to the account from the general assembly, and
102  5 other moneys available to and obtained or accepted by the
102  6 commission, including moneys from public or private sources.
102  7 However, the account shall not include moneys transferred
102  8 from a commodity organization as described in subsection 3.
102  9 Except as provided in subsection 3, all moneys received by the
102 10 commission for deposit into the fund shall be credited to the
102 11 general account.
102 12    3.  The clean water fund's assessment account includes the
102 13 following moneys collected and transferred to the account from
102 14 the following commodity organizations:
102 15    a.  The Iowa dairy industry commission as established in
102 16 chapter 179 or the Iowa state dairy association as recognized
102 17 in that chapter, which shall transfer moneys collected from the
102 18 state assessment for clean water as provided in that chapter,
102 19 including section 179.5.
102 20    b.  The Iowa beef cattle producers association as established
102 21 in chapter 181 which shall transfer moneys from the state
102 22 assessment as provided in that chapter, including section
102 23 181.13.
102 24    c.  The Iowa sheep and wool promotion board established
102 25 pursuant to chapter 182 which shall transfer moneys from the
102 26 state assessment as provided in that chapter, including section
102 27 182.18.
102 28    d.  The Iowa pork producers council as established in chapter
102 29 183A, or the Iowa pork producers association as recognized
102 30 in that chapter, which shall transfer moneys from the state
102 31 assessment as provided in that chapter, including section
102 32 183A.7.
102 33    e.  The Iowa egg council as established in chapter 184 which
102 34 shall transfer moneys from the state assessment as provided in
102 35 that chapter, including section 184.13.
103  1    f.  The Iowa turkey marketing council as established in
103  2 chapter 184A which shall transfer moneys from the state
103  3 assessment as provided in that chapter, including section
103  4 184A.4.
103  5    g.  The Iowa soybean association as recognized in chapter
103  6 185 which shall transfer moneys from the state assessment as
103  7 provided in that chapter, including section 185.26.
103  8    h.  The Iowa corn promotion board as established in  chapter
103  9 185C which shall transfer moneys from the state assessment as
103 10 provided in that chapter, including section 185C.26.
103 11    4.  The clean water fund's expenditures account only
103 12 includes moneys transferred from the general account and the
103 13 state assessment account as provided in this section.
103 14    5.  a.  Moneys in the clean water fund shall not be used for
103 15 any purpose other than described in this section.
103 16    b.  Moneys in the general account shall not be used for any
103 17 purpose other than for transfer to the expenditures account.
103 18    c.  Moneys in the assessment account shall not be used for
103 19 any purpose other than to do the following:
103 20    (1)  Pay administrative expenses which are limited to all of
103 21 the following:
103 22    (a)  Reimbursing the department of agriculture and land
103 23 stewardship or a commodity organization for all reasonable
103 24 costs of conducting a referendum to determine if a state
103 25 assessment for clean water is to be established, continued, or
103 26 terminated.  The division shall apply to the executive council
103 27 if necessary to receive moneys required to pay for reasonable
103 28 costs of conducting a referendum as provided in section 7D.10B.
103 29    (b)  Remitting refunds of moneys to persons who have paid a
103 30 state assessment for clean water to a commodity organization,
103 31 if the application for a refund has been approved by the
103 32 commodity organization and submitted to the department as
103 33 required by the division of soil conservation and water
103 34 quality.
103 35    (c)  Paying reasonable expenses associated with the
104  1 collection and transfer of moneys associated with the
104  2 collection of the state assessment for clean water and the
104  3 processing of refund applications associated with such
104  4 collection.
104  5    (d)  Transfer remaining moneys to the expenditures account
104  6 as provided in this section.
104  7    6.  The clean water commission shall review the balance of
104  8 moneys in the general account and the balance of moneys in the
104  9 assessment account fund not later than June 1 of each year to
104 10 make one of the following determinations:
104 11    a.  The total amount of moneys expected to be credited to
104 12 the general account during the following state fiscal year
104 13 beginning July 1 and ending June 30 will not equal or exceed
104 14 the balance of moneys in the assessment account on July 1 of
104 15 that same state fiscal year.  If the commission makes this
104 16 determination, the commission shall order all moneys credited
104 17 to the general account to be transferred to the expenditures
104 18 account during that same state fiscal year.  The commission
104 19 shall also order that each commodity organization that is
104 20 imposing and collecting a state assessment to immediately
104 21 suspend the imposition of that state assessment for the
104 22 following state fiscal year.
104 23    b.  The total amount of moneys expected to be credited to
104 24 the general account during the following state fiscal year
104 25 beginning July 1 and ending June 30 will at least equal the
104 26 balance of moneys in the state assessment account on July 1
104 27 of that same state fiscal year.  If the commission makes this
104 28 determination, the commission shall order all moneys credited
104 29 to the general account and assessment account to be transferred
104 30 to the expenditures account during that same state fiscal year.
104 31    7.  Moneys in the fund's expenditures account shall be
104 32 expended by the clean water commission to support programs
104 33 and projects administered to improve the state's watersheds
104 34 and surface waters, including but not limited to projects
104 35 associated with the water quality initiative established
105  1 pursuant to section 466B.42.  Moneys in the account shall be
105  2 used to support soil conservation and watershed protection, the
105  3 installation of conservation practices and watershed protection
105  4 improvements as provided in chapters 161A, 161C, 461A, 466,
105  5 and 466A.  Moneys in the account shall also be used to support
105  6 water quality programs and projects administered by the Iowa
105  7 finance authority under chapter 16.
105  8    8.  Notwithstanding section 8.33, moneys in the clean
105  9 water fund shall not revert. Notwithstanding section 12C.7,
105 10 subsection 2, interest or earnings on moneys in the fund shall
105 11 be credited to the fund.
105 12    Sec. 128.  NEW SECTION.  466B.52  Clean water commission ====
105 13 appointment and administration.
105 14    1.  A clean water commission is created which shall be housed
105 15 in the division of soil conservation and water quality of the
105 16 department of agriculture and land stewardship.
105 17    2.  The commission shall be comprised of nine voting members
105 18 appointed by the governor.
105 19    3.  The commission shall also be comprised of four
105 20 legislative members who shall serve in a nonvoting, ex officio
105 21 capacity.  The legislative members shall include all of the
105 22 following:
105 23    a.  Two members of the senate. One senator shall be
105 24 appointed by the majority leader of the senate and one senator
105 25 shall be appointed by the minority leader of the senate.
105 26    b.  Two members of the house of representatives. One
105 27 member shall be appointed by the speaker of the house of
105 28 representatives and one member shall be appointed by the
105 29 minority leader of the house of representatives.
105 30    4.  The commission shall also be comprised of persons
105 31 appointed by commodity organizations described in section
105 32 466B.51 who shall serve in a nonvoting, ex officio capacity.
105 33 Each commodity organization may appoint one person if producers
105 34 who are members of the commodity organization have approved
105 35 the establishment of a state assessment for clean water to be
106  1 transferred to the clean water fund created in section 466B.51.
106  2    5.  Voting members shall serve four=year terms and may be
106  3 reappointed.  The initial terms of the voting members shall
106  4 be staggered at the discretion of the governor. Nonvoting
106  5 members shall serve at the pleasure of the persons or commodity
106  6 organizations making their appointments.
106  7    6.  Sections 69.16, 69.16A, and 69.19 shall apply to the
106  8 voting members. The voting members are subject to senate
106  9 confirmation.
106 10    7.  a.  A member, other than a legislative member, is
106 11 eligible to receive compensation as provided in section 7E.6,
106 12 and shall be reimbursed for actual and necessary expenses
106 13 incurred in performance of the members' duties. All expenses
106 14 shall be paid from appropriations for such purposes and the
106 15 commission shall be subject to the budget requirements of
106 16 chapter 8.
106 17    b.  A legislative member serves for a term as provided in
106 18 section 69.16B and is eligible for per diem and expenses as
106 19 provided in section 2.10.
106 20    8.  The commission shall meet in January of each year for the
106 21 purpose of electing one of its voting members as chairperson.
106 22    9.  The commission shall meet on a regular basis and at the
106 23 call of the chairperson or upon the written request to the
106 24 chairperson of five or more voting members.  Written notice
106 25 of the time and place of the meeting shall be given to each
106 26 member.
106 27    10.  A majority of voting members constitutes a quorum,
106 28 and the affirmative vote of a majority of the voting members
106 29 is necessary for any action taken by the board, except that a
106 30 lesser number may adjourn a meeting.
106 31    11.  Any vacancy in the membership of the commission shall
106 32 be filled in the same manner as regular appointments are made
106 33 for the unexpired portion of the regular term.  A vacancy in
106 34 the membership of the commission does not impair the rights of
106 35 a quorum to exercise all rights and perform all duties of the
107  1 commission.
107  2    12.  A person shall not serve as a member of the commission
107  3 if the person has an interest in a contract or job of work or
107  4 material or the profits thereof or service to be performed
107  5 for the department of agriculture and land stewardship or
107  6 department of natural resources.  Any member of the commission
107  7 who accepts employment with or acquires any stock, bonds, or
107  8 other interest in any company or corporation doing business
107  9 with the department of agriculture and land stewardship or the
107 10 department of natural resources shall be disqualified from
107 11 remaining a member of the commission.
107 12    13.  The department of agriculture and land stewardship in
107 13 cooperation with the department of natural resources shall
107 14 assist the commission by doing all of the following:
107 15    a.  Provide the commission with necessary facilities, items,
107 16 and clerical support.
107 17    b.  Perform administrative functions necessary for the
107 18 management of the commission.
107 19    Sec. 129.  NEW SECTION.  466B.53  Clean water commission ====
107 20 powers and duties.
107 21    1.  The purpose of the clean water commission shall be to
107 22 identify and finance methods to improve surface water quality,
107 23 including by reducing contributing contaminant loads to
107 24 receiving surface waters and reducing soil erosion and sediment
107 25 loss.
107 26    2.  In furthering the purpose set forth in subsection 1, the
107 27 clean water commission shall do all of the following:
107 28    a.  Develop comprehensive water quality policies and plans,
107 29 that identify existing plans, programs, and projects.  The
107 30 commission shall use existing data and amend, augment, and
107 31 consolidate existing plans or strategies which have improved or
107 32 which promise to improve water quality.
107 33    b.  Identify additional water quality improvement needs on a
107 34 watershed basis, including the need to develop new or innovate
107 35 programs or projects.
108  1    c.  Measure the effectiveness and results of programs and
108  2 projects according to performance measures and associated
108  3 benchmarks.  The data demonstrating accountability collected by
108  4 the department shall be made readily available and maintained
108  5 in a computer=readable format.
108  6    3.  The clean water commission shall establish objectives
108  7 of programs described in subsection 2 to be achieved by
108  8 dates identified by the commission which may include program
108  9 timelines and milestones.  The commission shall measure and
108 10 monitor progress toward achieving program objectives.
108 11    4.  The commission shall develop comprehensive water quality
108 12 policies and plans, that integrate existing plans, programs,
108 13 and projects in accordance with the Iowa nutrient reduction
108 14 strategy.  The commission shall use existing data and amend,
108 15 augment, and consolidate existing plans or strategies which
108 16 have improved or which promise to improve water quality.
108 17 The commission shall also develop new comprehensive water
108 18 quality policies and plans, that integrate existing plans,
108 19 programs, and projects.  The information collected by the
108 20 department shall be made readily available and maintained in a
108 21 computer=readable format.
108 22    5.  The commission shall identify additional water quality
108 23 improvement needs on a watershed basis, including the need to
108 24 develop new or innovate programs or projects.
108 25    6.  By October 1, 2018, and by October 1 of each year
108 26 thereafter, the commission shall submit a report to the
108 27 governor and the general assembly used to support the programs
108 28 described in subsection 2.  A report shall include all of the
108 29 following:
108 30    a.  A description and update of the current status of water
108 31 quality programs and associated projects, and the expenditure
108 32 of moneys appropriated to support the programs and associated
108 33 projects administered by state entities, including but not
108 34 limited to the department of agriculture and land stewardship,
108 35 the department of natural resources, Iowa state university
109  1 of science and technology, the Iowa finance authority, and
109  2 watershed management authorities.
109  3    b.  An evaluation of the successes and failures of a
109  4 water quality program and any associated project in meeting
109  5 the program's objectives. The report shall include any
109  6 legislative proposals to enact, amend, or repeal statutes and
109  7 any administrative proposals to adopt, revise, or rescind
109  8 administrative rules.
109  9    7.  The Iowa finance authority, the department of natural
109 10 resources, and the department of agriculture and land
109 11 stewardship shall cooperate with the commission in providing
109 12 the commission with all information necessary for the
109 13 commission to carry out the provisions of this section.
109 14    Sec. 130.  NEW SECTION.  466B.54  Clean water commission ====
109 15 study.
109 16    1.  The clean water commission, in cooperation with the
109 17 department of agriculture and land stewardship, the department
109 18 of natural resources, and the Iowa finance authority shall
109 19 prepare and submit a clean water evaluation and expenditure
109 20 report to the governor and general assembly by January 15,
109 21 2018.
109 22    2.  The clean water evaluation and expenditure report shall
109 23 include all of the following:
109 24    a.  A description of current clean water programs and
109 25 projects, and the expenditure of moneys appropriated to
109 26 support those programs and projects.  The report shall evaluate
109 27 successes and failures of each program and project in meeting
109 28 water quality objectives. The report may also recommend
109 29 methods to improve the program.
109 30    b.  A plan for allocating moneys in the expenditures account
109 31 of the clean water fund created in section 466B.51.  The plan
109 32 shall include a formula which takes into account the extent to
109 33 which moneys may be used for all of the following:
109 34    (1)  Watersheds requiring immediate improved surface water
109 35 quality.
110  1    (2)  The establishment of infrastructure, conservation
110  2 measures, and practices that reduce contributing nutrient
110  3 loads, associated sediment, or contaminants from nonpoint
110  4 sources to surface waters in a scientific, reasonable, and
110  5 cost=effective manner.
110  6    (3)  The administration of programs or projects in a manner
110  7 that is consistent with the Iowa nutrient reduction strategy.
110  8    (4)  The degree to which political subdivisions or
110  9 stakeholders have demonstrated a willingness and have the
110 10 resources to participate in  programs or projects.
110 11    (5)  The degree to which clean water programs can attract
110 12 additional funding from private and public sources including
110 13 federal funding.
110 14    3.  The clean water evaluation and expenditure report shall
110 15 include a detailed plan for consolidating all water quality
110 16 and soil conservation initiatives and programs and associated
110 17 projects administered by the department of agriculture and
110 18 land stewardship, the department of natural resources, and the
110 19 Iowa finance authority under the overall supervision of the
110 20 commission.  The plan shall include any legislative proposals
110 21 to enact, amend, or repeal statutes and any administrative
110 22 proposals to adopt, revise, or rescind administrative rules.
110 23    Sec. 131.  APPROPRIATION.
110 24    1.  There is appropriated from the general fund of the state
110 25 to the clean water commission created in section 466B.52 for
110 26 the fiscal year beginning July 1, 2017, and ending June 30,
110 27 2018, the following amount, or so much thereof as is necessary,
110 28 to be used for the purposes designated:
110 29    To be credited to the general account of the clean water fund
110 30 created in section 466B.51:
110 31 .................................................. $ 40,000,000
110 32    2.  The amount of the appropriation made in subsection 1
110 33 shall be reduced by any amount of moneys to be credited to
110 34 the assessment account of the clean water fund due to state
110 35 assessments collected on or before June 30, 2017.
111  1                           DIVISION X
111  2                         ADMINISTRATION
111  3    Sec. 132.  NAME CHANGE TO REFERENDUM FOR DIRECT USE.  Nothing
111  4 in this Act requires the department of agriculture and land
111  5 stewardship or a commodity organization described in section
111  6 466B.51, as enacted in this Act, to conduct a referendum
111  7 because of this Act's reference to a referendum as a referendum
111  8 for direct use.
111  9                           EXPLANATION
111 10 The inclusion of this explanation does not constitute agreement with
111 11 the explanation's substance by the members of the general assembly.
111 12    This bill relates to agricultural commodity organizations
111 13 representing producers of that commodity that are authorized
111 14 to impose an excise tax or "assessment" (and commonly
111 15 referred to as a "checkoff") on the commodity when first
111 16 sold by the producer to a first purchaser.  The goal of the
111 17 assessment is to fund promotional activities which involve
111 18 market development, research, and education.  The commodity
111 19 organizations include the Iowa dairy industry commission or
111 20 Iowa state dairy association (Code chapter 179), Iowa beef
111 21 cattle producers association (Code chapter 181), Iowa sheep and
111 22 wool promotion board (Code chapter 182), Iowa pork producers
111 23 council or Iowa pork producers association (Code chapter 183A),
111 24 Iowa egg council (Code chapter 184), the Iowa turkey marketing
111 25 council (Code chapter 184A), the Iowa soybean association
111 26 (Code chapter 185), and the Iowa corn promotion board (Code
111 27 chapter 185C).  The bill requires a commodity organization
111 28 to establish a separate state assessment for clean water, if
111 29 approved by a majority of its members at a referendum.  The
111 30 bill also requires commodity organizations to conduct a special
111 31 referendum to increase the rate of the assessment for clean
111 32 water. The rate of the state assessment is established by the
111 33 governing body of the commodity organization not to exceed the
111 34 assessment for direct use or national assessment or both. The
111 35 referendum would be conducted in the same manner as an initial
112  1 or special referendum conducted by the commodity organization
112  2 under its specific Code chapter.  The special assessment could
112  3 be continued or terminated in the same manner as the commodity
112  4 organization's assessment for promotional activities.  Moneys
112  5 from the state assessment would be collected by the commodity
112  6 organization and transferred to a newly created clean water
112  7 fund.
112  8    The bill establishes a clean water commission housed in
112  9 the division of soil conservation and water quality of the
112 10 department of agriculture and land stewardship.  The commission
112 11 is composed of nine voting members appointed by the governor,
112 12 four legislative members who serve in a nonvoting, ex officio
112 13 capacity, and persons appointed by the commodity organizations,
112 14 who also serve in a nonvoting, ex officio capacity.
112 15 Appointments are contingent on the commodity organization
112 16 having approved the establishment of a state assessment for
112 17 clean water to be transferred to the clean water fund. The
112 18 purpose of the commission is to finance methods to improve
112 19 surface water quality, including by reducing contributing
112 20 contaminant loads to receiving surface waters and reducing soil
112 21 erosion and sediment loss. The commission is responsible for
112 22 overseeing the water quality initiative as administered by the
112 23 division of soil conservation and water quality.
112 24    Moneys collected from the state assessment are to be
112 25 credited to the clean water fund which is under the supervision
112 26 of the commission.  The fund is composed of a general account,
112 27 an assessment account, and an expenditures account. The fund's
112 28 general account includes moneys appropriated by the general
112 29 assembly and other moneys available to and obtained or accepted
112 30 by the commission.  Moneys collected from the state assessment
112 31 are to be credited to the assessment account.  The bill also
112 32 includes an expenditures account which only includes moneys
112 33 transferred from the general account and the assessment account
112 34 for purposes of financing methods to improve surface water
112 35 quality.  Moneys transferred from the assessment account are
113  1 to be used to reimburse the department of agriculture and land
113  2 stewardship or a commodity organization for reasonable costs
113  3 of conducting a referendum to determine if a state assessment
113  4 for clean water is to be established, continued, or terminated.
113  5 The commission can also apply to the executive council for
113  6 moneys required to pay for reasonable costs of conducting a
113  7 referendum.  Moneys deposited into the expenditures account
113  8 may also be used to pay refunds to producers who have paid the
113  9 state assessment if the refund application has been approved
113 10 by the commodity organization.  The commission must review
113 11 the balance of moneys in the general account and the balance
113 12 of moneys in the assessment account, prior to the end of
113 13 each fiscal year.  If the total amount of moneys expected
113 14 to be credited to the general account during the following
113 15 fiscal year will not at least equal the balance of moneys in
113 16 the assessment account the commission must order that each
113 17 commodity organization that is imposing and collecting a state
113 18 assessment immediately suspend the imposition of that state
113 19 assessment for the following fiscal year.
113 20    The bill appropriates $40 million from the general fund
113 21 of the state to the clean water commission for the fiscal
113 22 year beginning July 1, 2017, and ending June 30, 2018, to
113 23 be credited to the general account of the clean water fund.
113 24 However, the amount of the appropriation is to be reduced by
113 25 any moneys credited to the fund's assessment account due to
113 26 state assessments collected on or before June 30, 2017.
113 27    The commission, in cooperation with the department of
113 28 agriculture and land stewardship, the department of natural
113 29 resources, and the Iowa finance authority, must submit a
113 30 report to the governor and general assembly by January 15,
113 31 2018, which includes a description of current clean water
113 32 programs and projects and a detailed plan for consolidating all
113 33 water quality and soil conservation initiatives and programs
113 34 and associated projects administered by the department of
113 35 agriculture and land stewardship, the department of natural
114  1 resources, and the Iowa finance authority under the overall
114  2 supervision of the commission.
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