Bill Text: IA HSB42 | 2013-2014 | 85th General Assembly | Introduced
Bill Title: A study bill relating to the corn promotion board by providing for its governance, providing for an assessed checkoff on corn, and including effective date provisions.
Spectrum: Unknown
Status: (N/A - Dead) 2013-01-29 - Agriculture: Hein Chair,Miller, H., and Klein. [HSB42 Detail]
Download: Iowa-2013-HSB42-Introduced.html
House
Study
Bill
42
-
Introduced
HOUSE
FILE
_____
BY
(PROPOSED
COMMITTEE
ON
AGRICULTURE
BILL
BY
CHAIRPERSON
GRASSLEY)
A
BILL
FOR
An
Act
relating
to
the
corn
promotion
board
by
providing
for
1
its
governance,
providing
for
an
assessed
checkoff
on
corn,
2
and
including
effective
date
provisions.
3
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
4
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Section
1.
Section
185C.1,
Code
2013,
is
amended
by
adding
1
the
following
new
subsection:
2
NEW
SUBSECTION
.
4A.
“Director”
means
a
district
elected
3
director
or
a
board
elected
director
as
provided
in
section
4
185C.6.
5
Sec.
2.
Section
185C.1,
subsection
5,
Code
2013,
is
amended
6
to
read
as
follows:
7
5.
“District”
means
an
official
crop
reporting
district
8
formed
by
the
United
States
department
of
agriculture
for
use
9
on
January
1,
2013,
and
set
out
in
the
annual
farm
census
10
published
in
that
year
by
the
Iowa
department
of
agriculture
11
and
land
stewardship.
12
Sec.
3.
Section
185C.3,
Code
2013,
is
amended
to
read
as
13
follows:
14
185C.3
Establishment
of
corn
promotion
board.
15
If
a
majority
of
the
producers
voting
in
the
referendum
16
election
approve
the
passage
of
the
promotional
order,
an
Iowa
17
corn
promotion
board
shall
be
established.
The
board
shall
18
consist
of
one
director
elected
from
each
district
in
the
19
state,
except
that
a
district
producing
more
than
an
average
20
of
one
hundred
million
bushels
of
corn
in
the
three
previous
21
marketing
years
is
entitled
to
two
directors.
22
Sec.
4.
Section
185C.6,
Code
2013,
is
amended
by
striking
23
the
section
and
inserting
in
lieu
thereof
the
following:
24
185C.6
Number
and
election
of
directors.
25
The
Iowa
corn
promotion
board
established
pursuant
to
26
section
185C.3
shall
be
composed
of
directors
elected
as
27
provided
in
this
chapter.
The
directors
shall
include
all
of
28
the
following:
29
1.
Nine
district
elected
directors.
Each
such
director
30
shall
be
elected
from
a
district
as
provided
in
section
185C.5,
31
this
section,
and
sections
185C.7
and
185C.8.
A
candidate
32
receiving
the
highest
number
of
votes
in
each
district
shall
be
33
elected
to
represent
that
district.
34
2.
Three
board
elected
directors.
Each
such
director
shall
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be
elected
by
the
board.
The
candidate
receiving
the
highest
1
number
of
votes
by
the
board
shall
be
elected
to
represent
the
2
state
on
at-large
basis.
3
Sec.
5.
Section
185C.7,
Code
2013,
is
amended
to
read
as
4
follows:
5
185C.7
Terms
of
directors.
6
1.
Director
terms
A
director’s
term
of
office
shall
be
for
7
three
years
and
no
.
A
district
elected
director
of
the
board
8
shall
not
serve
for
more
than
three
complete
consecutive
terms.
9
A
board
elected
director
shall
not
serve
for
more
than
one
10
complete
term
of
office.
A
district
elected
director
who
is
11
elected
as
board
elected
director
shall
not
serve
more
than
a
12
total
of
four
terms
of
office,
regardless
of
whether
any
of
the
13
terms
of
office
are
complete
or
consecutive.
14
2.
If
the
board
is
reconstituted
pursuant
to
section
185C.8
,
15
the
terms
of
the
directors
shall
be
controlled
by
this
section
.
16
However,
the
initial
terms
of
the
reconstituted
board
shall
17
be
staggered.
To
the
extent
practicable,
one-third
of
the
18
elected
directors
shall
serve
an
initial
term
of
one
year,
19
one-third
of
the
elected
directors
shall
serve
an
initial
term
20
of
two
years,
and
one-third
of
the
elected
directors
shall
21
serve
an
initial
term
of
three
years.
The
initial
terms
of
22
board
elected
directors
shall
be
determined
by
board
members
23
directors
drawing
lots.
The
board
elected
under
this
paragraph
24
shall
not
contain
two
directors
from
the
same
district
serving
25
the
same
term.
26
Sec.
6.
Section
185C.8,
Code
2013,
is
amended
to
read
as
27
follows:
28
185C.8
Elections
Administration
of
elections
for
directors
.
29
1.
The
Iowa
corn
promotion
board
shall
administer
elections
30
for
district
elected
directors
of
the
board
with
the
assistance
31
of
the
secretary.
Prior
to
the
expiration
of
a
director’s
32
term
of
office,
the
board
shall
appoint
a
nominating
committee
33
for
the
district
represented
by
that
director.
The
nominating
34
committee
shall
consist
of
five
producers
who
are
residents
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of
the
district
from
which
a
director
must
be
elected.
The
1
nominating
committee
shall
nominate
two
resident
producers
as
2
candidates
for
each
director
position
for
which
an
election
3
is
to
be
held.
Additional
candidates
may
be
nominated
by
4
a
written
petition
of
twenty-five
producers.
Procedures
5
governing
the
time
and
place
of
filing
shall
be
adopted
and
6
publicized
by
the
board.
7
Following
recommencement
of
the
promotional
order,
8
or
termination
of
the
promotional
order’s
suspension
as
9
provided
in
section
185C.24
,
the
secretary
shall
order
the
10
reconstitution
of
the
board.
An
election
of
district
elected
11
directors
shall
be
held
within
thirty
days
from
the
date
of
the
12
order.
The
secretary
shall
call
for,
provide
for
notice
of,
13
conduct,
and
certify
the
results
of
the
election
in
a
manner
14
consistent
with
section
185C.5
through
185C.7
.
Directors
shall
15
serve
terms
as
provided
in
section
185C.7
.
Rules
or
procedures
16
adopted
by
the
board
and
in
effect
at
the
date
of
suspension
17
shall
continue
in
effect
upon
reconstitution
of
the
board.
18
The
Iowa
corn
growers
association
may
nominate
two
resident
19
producers
as
candidates
for
each
director
position.
Additional
20
candidates
may
be
nominated
by
a
written
petition
of
at
least
21
twenty-five
producers.
22
2.
The
Iowa
corn
promotion
board
shall
administer
elections
23
for
board
elected
directors.
Prior
to
the
expiration
of
a
24
board
elected
director’s
term
of
office,
the
board
may
appoint
25
a
nominating
committee.
In
order
to
be
eligible
for
nomination
26
and
election,
a
candidate
must
have
previously
served
on
the
27
board
as
an
elected
director.
An
officer
of
the
board
shall
28
certify
the
results
of
the
election.
29
Sec.
7.
Section
185C.10,
subsection
3,
Code
2013,
is
amended
30
by
striking
the
subsection.
31
Sec.
8.
Section
185C.14,
subsection
3,
Code
2013,
is
amended
32
to
read
as
follows:
33
3.
The
board
shall
meet
at
least
once
every
three
months
34
times
each
year
,
and
at
such
other
times
as
deemed
necessary
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by
the
board.
1
Sec.
9.
Section
185C.21,
subsection
2,
Code
2013,
is
amended
2
to
read
as
follows:
3
2.
Upon
request
of
the
board,
the
secretary
shall
call
4
a
special
referendum
for
producers
to
vote
on
whether
to
5
authorize
an
increase
in
the
state
assessment
above
one-quarter
6
of
one
cent
per
bushel,
notwithstanding
subsection
1
.
The
7
special
referendum
shall
be
conducted
as
provided
in
this
8
chapter
for
referendum
elections.
However,
the
special
9
referendum
shall
not
affect
the
existence
or
length
of
the
10
promotional
order
in
effect.
If
a
majority
of
the
producers
11
voting
in
the
special
referendum
approve
the
increase,
the
12
board
may
increase
the
assessment
to
the
amount
approved
in
13
the
special
referendum.
However,
a
state
assessment
shall
not
14
exceed
one
cent
per
bushel
of
corn
marketed
in
this
state.
15
Sec.
10.
Section
185C.27,
Code
2013,
is
amended
to
read
as
16
follows:
17
185C.27
Refund
of
assessment.
18
A
producer
who
has
sold
corn
and
had
a
state
assessment
19
deducted
from
the
sale
price,
by
application
in
writing
to
20
the
board,
may
secure
a
refund
in
the
amount
deducted.
The
21
refund
shall
be
payable
only
when
the
application
shall
have
22
been
made
to
the
board
within
sixty
days
after
the
deduction.
23
Application
forms
shall
be
given
by
the
board
to
each
first
24
purchaser
when
requested
and
the
first
purchaser
shall
make
the
25
applications
available
to
any
producer.
Each
application
for
26
refund
by
a
producer
shall
have
attached
to
the
application
27
proof
of
the
assessment
deducted.
The
proof
of
assessment
28
may
be
in
the
form
of
a
duplicate
or
certified
copy
of
the
29
purchase
invoice
by
the
first
purchaser.
The
board
shall
have
30
thirty
business
days
from
the
date
the
application
for
refund
31
is
received
to
remit
the
refund
to
the
producer.
The
board
32
may
provide
for
refunds
of
a
federal
assessment
as
provided
by
33
federal
law.
Unless
inconsistent
with
federal
law,
refunds
34
shall
be
made
under
section
185C.26
.
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Sec.
11.
IMPLEMENTATION.
The
Iowa
corn
promotion
board
1
established
pursuant
to
section
185C.3
shall
implement
this
2
Act.
3
1.
During
the
implementation
period
all
of
the
following
4
shall
apply:
5
a.
The
board
shall
provide
for
staggered
terms
of
directors
6
in
the
same
manner
as
required
for
the
initial
terms
of
office
7
of
a
reconstituted
board
pursuant
to
section
185C.7.
However,
8
the
board
is
not
required
to
draw
lots
as
otherwise
provided
in
9
that
section.
10
b.
The
board
is
not
required
to
fill
a
vacancy
for
an
11
unexpired
term
as
required
in
section
185C.9.
12
c.
The
board
may
reduce
the
number
of
years
of
a
director’s
13
term
in
order
to
comply
with
this
section.
14
2.
The
board
shall
complete
implementation
of
this
Act
not
15
later
than
July
1,
2014.
16
Sec.
12.
EFFECTIVE
UPON
ENACTMENT.
This
Act,
being
deemed
17
of
immediate
importance,
takes
effect
upon
enactment.
18
EXPLANATION
19
GENERAL.
This
bill
amends
Code
chapter
185C
which
provides
20
for
an
assessment
on
the
sale
of
each
bushel
of
corn,
a
21
self-imposed
tax
or
“checkoff”,
imposed
on
producers
and
22
collected
by
first
purchasers
for
remission
to
the
Iowa
corn
23
promotion
board
(board)
for
purposes
of
promoting
the
marketing
24
of
corn
and
corn
products
and
to
provide
for
related
education
25
and
research
programs
and
a
financial
assistance
program
(Code
26
sections
185C.11,
185C.11A,
and
185C.21).
The
maximum
rate
of
27
assessment
is
one
cent
per
bushel
(Code
section
185C.21).
A
28
producer
may
claim
a
refund,
and
the
board
has
30
calendar
days
29
in
order
to
satisfy
that
claim
(Code
section
185C.27).
30
The
board
of
directors
are
each
elected
for
staggered
31
three-year
terms
(Code
section
185C.7).
The
districts
are
32
based
on
the
official
crop
reporting
districts
established
33
by
the
United
States
department
of
agriculture
(Code
section
34
185C.1).
Currently,
there
are
nine
districts.
Each
district
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producing
more
than
an
average
of
100,000,000
bushels
of
corn
1
in
the
prior
marketing
year
is
entitled
to
elect
two
directors
2
(Code
section
185C.3).
A
director
cannot
serve
for
more
than
3
three
complete
consecutive
terms
(Code
section
185C.7).
The
4
board
must
meet
once
every
three
months
(Code
section
185C.14).
5
Currently,
17
directors
serve
on
the
board.
In
addition,
6
there
are
four
ex
officio,
nonvoting
members,
including
7
the
secretary
of
agriculture,
the
dean
of
the
college
of
8
agriculture
and
life
sciences
of
Iowa
state
university
9
of
science
and
technology,
the
director
of
the
economic
10
development
authority,
and
two
representatives
of
first
11
purchaser
organizations
(Code
section
185C.10).
12
BILL
——
ORGANIZATION
OF
DISTRICTS.
The
bill
provides
that
13
the
nine
districts
are
to
be
organized
based
on
the
crop
14
reporting
districts
formed
by
the
United
States
department
of
15
agriculture
for
use
on
January
1,
2013.
16
BILL
——
CHANGE
IN
BOARD
GOVERNANCE.
The
bill
provides
that
17
12
directors
are
to
be
elected
to
the
board.
Each
of
nine
18
districts
are
to
be
represented
by
one
director.
In
addition
19
three
directors
are
to
be
elected
by
the
board
to
serve
at
20
large.
A
board
elected
director
must
have
served
as
a
district
21
elected
director.
A
board
director
so
elected
cannot
serve
22
more
than
a
total
of
four
terms
in
office
regardless
of
whether
23
any
of
the
terms
are
complete
or
consecutive.
24
The
bill
removes
the
director
of
the
economic
development
25
authority
as
an
ex
officio
member.
26
BILL
——
MEETING
TIMES.
The
bill
provides
that
the
board
27
must
meet
at
least
three
times
a
year
rather
than
every
three
28
months.
29
BILL
——
ASSESSMENTS.
The
bill
eliminates
the
maximum
one
30
cent
per
bushel
assessment
rate.
Any
increase
in
the
current
31
assessment
rate
would
have
to
still
be
accomplished
by
a
32
special
referendum
of
producers.
The
bill
provides
that
the
33
board
now
has
30
business
days
in
order
to
satisfy
a
producer’s
34
request
for
a
refund.
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BILL
——
IMPLEMENTATION.
The
board
is
responsible
for
1
implementing
the
provisions
of
the
bill,
including
by
providing
2
for
staggered
terms
of
its
directors
notwithstanding
any
3
applicable
procedures
in
the
Code
chapter
to
the
contrary.
The
4
board
must
complete
its
implementation
by
July
1,
2014.
5
BILL
——
EFFECTIVE
DATE.
The
bill
takes
effect
upon
6
enactment.
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