Bill Text: IA SF556 | 2023-2024 | 90th General Assembly | Introduced
Bill Title: A bill for an act providing for financing of certain agricultural commodity programs, by reducing and eliminating fees imposed on licensed grain dealers and warehouse operators, replacing those moneys with moneys collected from a percentage of state assessments imposed on the sale of corn, increasing moneys deposited into the grain depositors and sellers indemnity fund, increasing indemnification amounts, and making appropriations.(Formerly SSB 1205.)
Spectrum: Committee Bill
Status: (Introduced) 2024-01-09 - Subcommittee: Driscoll, Jochum, and Schultz. S.J. 61. [SF556 Detail]
Download: Iowa-2023-SF556-Introduced.html
Senate
File
556
-
Introduced
SENATE
FILE
556
BY
COMMITTEE
ON
WAYS
AND
MEANS
(SUCCESSOR
TO
SSB
1205)
A
BILL
FOR
An
Act
providing
for
financing
of
certain
agricultural
1
commodity
programs,
by
reducing
and
eliminating
fees
imposed
2
on
licensed
grain
dealers
and
warehouse
operators,
replacing
3
those
moneys
with
moneys
collected
from
a
percentage
of
4
state
assessments
imposed
on
the
sale
of
corn,
increasing
5
moneys
deposited
into
the
grain
depositors
and
sellers
6
indemnity
fund,
increasing
indemnification
amounts,
and
7
making
appropriations.
8
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
9
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Section
1.
Section
185C.1,
subsection
9,
Code
2023,
is
1
amended
to
read
as
follows:
2
9.
“Market
development”
means
to
engage
improve
the
economic
3
conditions
of
corn
production,
storage,
and
marketing,
by
4
engaging
in
research
and
educational
programs
directed
toward
5
better
and
more
efficient
production,
storage,
and
utilization
6
of
corn;
to
provide
providing
methods
and
means
,
including
but
7
not
limited
to
,
public
relations
and
other
promotion
techniques
8
for
the
maintenance
of
present
markets;
to
provide
ensuring
9
the
security
of
corn
to
be
stored
and
marketed
in
commercial
10
channels;
providing
for
the
development
of
new
or
larger
11
domestic
and
foreign
markets;
and
to
provide
providing
for
the
12
prevention,
modification,
or
elimination
of
trade
barriers
13
which
obstruct
the
free
flow
of
corn.
14
Sec.
2.
Section
185C.11,
subsection
1,
Code
2023,
is
amended
15
by
adding
the
following
new
paragraphs:
16
NEW
PARAGRAPH
.
j.
Administer
the
corn
checkoff
account
as
17
provided
in
section
185C.26.
18
NEW
PARAGRAPH
.
k.
Accept
gifts,
rents,
royalties,
interest,
19
license
fees,
or
federal
or
state
grants.
Any
moneys
accepted
20
by
the
board
shall
be
deposited
in
an
account
of
a
qualified
21
financial
institution.
22
Sec.
3.
Section
185C.21,
subsection
1,
Code
2023,
is
amended
23
to
read
as
follows:
24
1.
The
board
shall
determine
and
set
the
state
assessment
25
rate.
State
assessments
collected
pursuant
to
the
promotional
26
order
shall
be
paid
into
the
corn
promotion
marketing
fund
27
established
in
section
185C.26
.
Except
as
provided
in
28
subsection
2
,
a
state
assessment
shall
not
exceed
one-quarter
29
of
one
cent
per
bushel
upon
corn
marketed
in
this
state.
30
Sec.
4.
Section
185C.24,
subsections
1
and
2,
Code
2023,
are
31
amended
to
read
as
follows:
32
1.
The
board
shall
be
suspended
and
board
operations
and
33
terms
of
members
shall
cease
upon
either
any
of
the
following
34
events:
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a.
The
state
assessment
is
terminated
pursuant
to
section
1
185C.25
.
2
b.
The
state
assessment
is
suspended
pursuant
to
section
3
185C.25A
.
4
2.
However,
notwithstanding
subsection
1
,
the
board
5
shall
continue
to
operate
until
proceeds
remaining
in
moneys
6
transferred
from
the
corn
promotion
marketing
fund
to
the
corn
7
checkoff
account
are
disbursed.
Disbursement
shall
be
made
8
as
provided
for
payment
the
transfer
of
moneys
under
section
9
185C.26
.
10
Sec.
5.
Section
185C.26,
Code
2023,
is
amended
to
read
as
11
follows:
12
185C.26
Deposit
of
moneys
——
corn
promotion
marketing
fund
13
——
transfers
.
14
1.
A
Moneys
from
the
state
assessment
collected
by
the
Iowa
15
corn
promotion
board
from
a
the
sale
of
corn
shall
be
deposited
16
in
the
office
of
the
treasurer
of
state
in
a
special
fund
known
17
as
the
corn
promotion
marketing
fund
established
in
the
office
18
of
the
treasurer
of
state
.
The
fund
may
include
any
gifts,
19
rents,
royalties,
interest,
license
fees,
or
a
federal
or
state
20
grant
received
by
the
board.
Moneys
collected,
deposited
21
in
the
corn
marketing
fund
,
and
transferred
to
the
board
as
22
provided
in
this
chapter
shall
be
subject
to
audit
by
the
23
auditor
of
state.
The
auditor
of
state
may
seek
reimbursement
24
for
the
cost
of
the
audit
from
moneys
deposited
in
the
corn
25
marketing
fund
as
provided
in
this
chapter
.
The
department
of
26
administrative
services
shall
transfer
moneys
from
the
fund
27
2.
a.
Except
as
provided
in
paragraph
“b”
,
the
department
28
of
administrative
services
shall
transfer
moneys
deposited
29
in
the
corn
marketing
fund
to
the
board
for
deposit
into
in
30
an
account
known
as
the
corn
checkoff
account
which
shall
be
31
established
by
the
board
in
a
qualified
financial
institution.
32
The
department
of
administrative
services
shall
transfer
the
33
moneys
to
the
corn
checkoff
account
as
provided
in
a
resolution
34
adopted
by
the
board.
However,
the
department
is
only
required
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to
transfer
moneys
once
during
each
day
and
only
during
hours
1
when
the
offices
of
the
state
are
open.
From
moneys
collected,
2
transferred
to
the
corn
checkoff
account,
the
board
shall
first
3
pay
all
the
direct
and
indirect
costs
incurred
by
the
secretary
4
and
the
costs
of
referendums,
elections,
and
other
expenses
5
incurred
in
the
administration
of
this
chapter
,
before
the
6
transferred
moneys
may
be
expended
to
carry
for
other
uses
as
7
provided
in
section
185C.28,
including
for
carrying
out
the
8
purposes
of
this
chapter
as
provided
in
section
185C.11
.
9
b.
(1)
Except
as
otherwise
provided
in
subparagraph
(2),
10
twenty-five
percent
of
moneys
deposited
in
the
corn
marketing
11
fund
shall
be
transferred
to
the
grain
depositors
and
sellers
12
indemnity
fund
created
in
section
203D.3
for
use
as
provided
13
in
section
185C.28.
14
(2)
If
the
department
of
agriculture
and
land
stewardship
15
delivers
a
state
assessment
transfer
suspension
notice
to
the
16
department
of
administrative
services
as
provided
in
section
17
203D.3B,
moneys
that
would
otherwise
be
transferred
to
the
18
grain
depositors
and
sellers
indemnity
fund
as
described
in
19
subparagraph
(1)
shall
instead
be
transferred
to
the
corn
20
checkoff
account
for
use
by
the
board
in
the
same
manner
21
provided
in
paragraph
“a”
.
22
(3)
If
the
department
of
agriculture
and
land
stewardship
23
delivers
a
state
assessment
transfer
reinstatement
notice
24
to
the
department
of
administrative
services
as
provided
in
25
section
203D.3B,
moneys
that
would
otherwise
be
transferred
to
26
the
corn
checkoff
account
under
subparagraph
(2)
shall
again
be
27
transferred
to
the
grain
depositors
and
sellers
indemnity
fund
28
in
the
same
manner
described
in
subparagraph
(1).
29
c.
The
department
of
administrative
services
is
only
30
required
to
transfer
moneys
under
this
subsection
to
the
corn
31
checkoff
account
and
the
grain
depositors
and
sellers
indemnity
32
fund
once
during
each
day
and
only
during
hours
when
the
33
offices
of
the
state
are
open.
34
Sec.
6.
Section
185C.28,
Code
2023,
is
amended
to
read
as
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follows:
1
185C.28
Use
of
moneys
——
appropriation
appropriations
.
2
1.
Moneys
deposited
in
the
corn
promotion
fund
and
3
transferred
to
Except
as
provided
in
subsection
2,
moneys
4
transferred
or
accepted
by
the
board
,
as
provided
in
section
5
185C.26
,
including
federal
moneys
to
the
extent
permitted
6
by
federal
law,
are
appropriated
and
shall
be
used
for
7
the
administration
of
this
chapter
and
for
the
payment
of
8
claims
based
upon
obligations
incurred
in
the
performance
of
9
activities
and
functions
provided
in
this
chapter
.
10
2.
Moneys
transferred
from
the
corn
marketing
fund
to
the
11
grain
depositors
and
sellers
indemnity
fund
as
provided
in
12
section
185C.26
are
appropriated
for
use
by
the
department
of
13
agriculture
and
land
stewardship
and
the
Iowa
grain
indemnity
14
fund
board
as
provided
in
chapter
203D.
15
Sec.
7.
Section
185C.29,
subsection
1,
Code
2023,
is
amended
16
to
read
as
follows:
17
1.
After
the
direct
and
indirect
costs
incurred
by
the
18
secretary
and
the
costs
of
elections,
referendums,
necessary
19
board
expenses,
and
administrative
costs
have
been
paid,
at
20
least
seventy-five
percent
of
the
remaining
moneys
from
a
state
21
assessment
deposited
in
the
corn
promotion
marketing
fund
and
22
transferred
to
the
corn
checkoff
account
established
in
section
23
185C.26
shall
be
used
to
carry
out
the
purposes
of
the
board
as
24
provided
in
section
185C.11
.
25
Sec.
8.
Section
185C.30,
Code
2023,
is
amended
to
read
as
26
follows:
27
185C.30
Bond.
28
Every
person
occupying
a
position
of
trust
with
the
board
29
and
acting
under
any
provisions
a
provision
of
this
chapter
30
shall
give
post
a
bond
in
such
amount
as
may
be
required
by
the
31
board
,
the
.
The
premium
for
which
the
bond
shall
be
paid
out
of
32
moneys
in
the
corn
promotion
fund
checkoff
account
established
33
in
section
185C.26
.
34
Sec.
9.
Section
185C.33,
Code
2023,
is
amended
to
read
as
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follows:
1
185C.33
Report.
2
The
board
shall
each
year
prepare
and
submit
a
report
3
summarizing
the
activities
of
the
board
under
this
chapter
to
4
the
auditor
of
state
and
the
secretary
of
agriculture.
The
5
report
shall
show
all
income,
expenses,
and
other
relevant
6
information
concerning
fees
moneys
collected
by
the
board,
7
deposited
by
the
board
into
the
corn
marketing
fund
established
8
in
section
185C.26
or
another
account,
transferred
to
the
9
board,
and
expended
by
the
board
under
the
provisions
of
this
10
chapter
.
11
Sec.
10.
Section
185C.34,
Code
2023,
is
amended
to
read
as
12
follows:
13
185C.34
Not
a
state
agency
——
public
funds
.
14
1.
The
Except
as
provided
in
subsection
2,
the
Iowa
corn
15
promotion
board
is
not
a
state
agency.
16
2.
The
board
is
deemed
to
be
a
public
body
for
purposes
of
17
chapter
12C.
18
3.
Moneys
deposited
in
the
corn
marketing
fund
and
19
transferred
to
the
corn
checkoff
account
as
established
in
20
section
185C.26
or
the
grain
depositors
and
sellers
indemnity
21
fund
as
provided
in
that
section
shall
be
deemed
to
be
public
22
funds
under
chapter
12C.
23
Sec.
11.
Section
203.1,
Code
2023,
is
amended
by
adding
the
24
following
new
subsection:
25
NEW
SUBSECTION
.
7A.
“Fund”
means
the
grain
depositors
and
26
sellers
indemnity
fund
created
in
section
203D.3.
27
Sec.
12.
Section
203.4,
Code
2023,
is
amended
to
read
as
28
follows:
29
203.4
Participation
in
indemnity
fund
required.
30
A
grain
dealer
licensed
or
required
to
be
licensed
pursuant
31
to
section
203.3
shall
participate
in
and
comply
with
the
grain
32
depositors
and
sellers
indemnity
fund
as
provided
in
chapter
33
203D
.
34
Sec.
13.
Section
203.5,
Code
2023,
is
amended
to
read
as
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follows:
1
203.5
License.
2
1.
a.
Upon
the
filing
of
an
application
on
a
form
3
prescribed
by
the
department
and
compliance
with
the
terms
and
4
conditions
of
this
chapter
including
rules
of
the
department,
5
the
department
shall
issue
the
applicant
a
grain
dealer’s
6
license.
The
license
expires
at
the
end
of
the
third
calendar
7
month
following
the
close
of
the
grain
dealer’s
fiscal
year.
8
A
grain
dealer’s
license
may
be
renewed
annually
by
filing
a
9
renewal
application
on
a
form
prescribed
by
the
department.
An
10
application
for
renewal
must
be
received
by
the
department
on
11
or
before
the
end
of
the
third
calendar
month
following
the
12
close
of
the
grain
dealer’s
fiscal
year.
13
b.
The
department
shall
not
issue
approve
an
application
for
14
the
issuance
or
renewal
of
a
grain
dealer’s
license
unless
the
15
applicant
pays
all
of
the
following
fees:
to
the
department
an
16
issuance
fee
or
renewal
fee
imposed
under
section
203.6.
17
(1)
For
the
issuance
of
a
license,
all
of
the
following:
18
(a)
A
license
fee
imposed
under
section
203.6
.
19
(b)
A
participation
fee
imposed
under
section
203D.3A
,
20
and
any
delinquent
participation
fee
imposed
under
a
previous
21
license
as
provided
in
that
section.
22
(2)
For
the
renewal
of
a
license,
all
of
the
following:
23
(a)
A
renewal
fee
imposed
under
section
203.6
.
24
(b)
A
participation
fee
imposed
under
section
203D.3A
,
and
25
any
delinquent
participation
fee
as
provided
in
that
section.
26
(c)
A
per-bushel
fee
as
provided
in
section
203D.3A
,
and
27
any
delinquent
per-bushel
fee
and
penalty
as
provided
in
that
28
section.
29
2.
The
department
shall
notify
a
licensed
grain
dealer
30
of
any
delinquency
in
the
payment
of
a
participation
fee
or
31
per-bushel
fee
as
provided
in
section
203D.3A
.
The
department
32
shall
suspend
the
grain
dealer’s
license
thirty
days
after
33
delivering
the
notice
unless
the
licensed
grain
dealer
pays
the
34
delinquent
fee.
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3.
The
department
may
suspend
or
revoke
the
license
of
a
1
grain
dealer
who
discounts
the
purchase
price
paid
for
grain
2
nominally
for
the
participation
fee
or
per-bushel
fee
as
3
provided
in
section
203D.3A
while
that
fee
is
not
in
effect.
4
4.
2.
A
grain
dealer
license
which
that
has
expired
may
be
5
reinstated
by
the
department
upon
receipt
of
a
proper
renewal
6
application,
the
a
renewal
fee
,
and
a
reinstatement
fee
as
7
provided
in
imposed
under
section
203.6
,
and
any
delinquent
8
participation
fee
or
per-bushel
fee
and
penalty
as
provided
9
in
section
203D.3A
.
The
applicant
must
file
the
renewal
10
application
and
pay
the
fees
and
penalty
to
the
department
11
renewal
fee
and
reinstatement
fee
within
thirty
days
from
the
12
date
of
expiration
of
the
grain
dealer
license.
13
5.
3.
The
department
may
cancel
a
license
upon
request
14
of
the
licensee
unless
a
complaint
or
information
is
filed
15
against
the
licensee
alleging
a
violation
of
a
provision
of
16
this
chapter
.
17
6.
4.
a.
The
department
shall
refund
a
fee
imposed
18
under
section
203.6
that
has
been
paid
by
an
applicant
to
the
19
department
under
this
section
if
the
department
does
not
issue
20
or
renew
a
grain
dealer’s
license.
21
b.
The
department
shall
prorate
a
fee
imposed
under
section
22
203.6
that
has
been
paid
by
an
applicant
to
the
department
23
under
this
section
for
the
issuance
or
renewal
of
a
license
for
24
less
than
a
full
year.
25
7.
5.
The
department
may
deny
a
license
to
an
applicant
26
if
the
applicant
has
had
a
license
issued
under
this
chapter
27
or
chapter
203C
revoked
within
the
past
three
years,
the
28
applicant
has
been
convicted
of
a
felony
involving
a
violation
29
of
this
chapter
or
chapter
203C
,
or
the
applicant
is
owned
or
30
controlled
by
a
person
who
has
had
a
license
so
revoked
or
who
31
has
been
so
convicted.
32
8.
6.
The
department
may
deny
a
license
to
an
applicant
if
33
any
of
the
following
apply:
34
a.
The
applicant
has
caused
liability
to
the
Iowa
grain
35
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depositors
and
sellers
indemnity
fund
in
regard
to
a
license
1
issued
under
this
chapter
or
chapter
203C
,
and
the
liability
2
has
not
been
discharged,
settled,
or
satisfied.
3
b.
The
applicant
is
owned
or
controlled
by
a
person
who
has
4
caused
liability
to
the
fund
through
operations
under
a
license
5
issued
under
this
chapter
or
chapter
203C
and
the
liability
has
6
not
been
discharged,
settled,
or
satisfied.
7
Sec.
14.
Section
203.6,
unnumbered
paragraph
1,
Code
2023,
8
is
amended
to
read
as
follows:
9
The
department
shall
charge
impose
the
following
license
10
fees
for
deposit
in
the
general
fund:
11
Sec.
15.
Section
203C.1,
Code
2023,
is
amended
by
adding
the
12
following
new
subsection:
13
NEW
SUBSECTION
.
9A.
“Fund”
means
the
grain
depositors
and
14
sellers
indemnity
fund
created
in
section
203D.3.
15
Sec.
16.
Section
203C.12,
Code
2023,
is
amended
to
read
as
16
follows:
17
203C.12
Participation
in
fund
required.
18
A
person
licensed
to
operate
a
warehouse
under
this
chapter
19
shall
participate
in
and
comply
with
the
grain
depositors
and
20
sellers
indemnity
fund
as
provided
in
chapter
203D
.
21
Sec.
17.
Section
203C.33,
subsection
1,
unnumbered
22
paragraph
1,
Code
2023,
is
amended
to
read
as
follows:
23
The
department
shall
charge
impose
the
following
license
24
fees
for
deposit
in
the
general
fund:
25
Sec.
18.
Section
203C.37,
subsections
1,
2,
and
3,
Code
26
2023,
are
amended
to
read
as
follows:
27
1.
a.
Upon
the
filing
of
an
application
pursuant
to
section
28
203C.7
and
compliance
with
the
terms
and
conditions
of
this
29
chapter
including
rules
of
the
department,
the
department
30
shall
issue
the
applicant
a
warehouse
operator’s
license.
31
The
license
expires
at
the
end
of
the
third
calendar
month
32
following
the
close
of
the
warehouse
operator’s
fiscal
year.
33
A
warehouse
operator’s
license
may
be
renewed
annually
by
the
34
filing
of
a
renewal
application
on
a
form
prescribed
by
the
35
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department
pursuant
to
section
203C.7
.
An
application
for
A
1
renewal
application
must
be
received
by
the
department
on
or
2
before
the
end
of
the
third
calendar
month
following
the
close
3
of
the
warehouse
operator’s
fiscal
year.
4
b.
The
department
shall
not
approve
an
application
for
the
5
issuance
or
renewal
of
a
warehouse
operator’s
license
unless
6
the
applicant
pays
all
of
the
following
fees:
to
the
department
7
an
issuance
fee
or
renewal
fee
imposed
under
section
203C.33.
8
(1)
For
the
issuance
of
a
license,
all
of
the
following:
9
(a)
A
license
fee
imposed
under
section
203C.33
.
10
(b)
A
participation
fee
imposed
under
section
203D.3A
,
11
and
any
delinquent
participation
fee
imposed
under
a
previous
12
license
as
provided
in
that
section.
13
(2)
For
the
renewal
of
a
license,
all
of
the
following:
14
(a)
A
renewal
fee
imposed
under
section
203C.33
.
15
(b)
A
participation
fee
imposed
under
section
203D.3A
,
and
16
any
delinquent
participation
fee
as
provided
in
that
section.
17
2.
The
failure
of
a
warehouse
operator
to
file
a
renewal
18
application
and
to
pay
a
renewal
fee
as
provided
for
in
imposed
19
under
section
203C.33
and
any
delinquent
participation
fee
as
20
provided
in
section
203D.3A
,
on
or
before
the
end
of
the
third
21
calendar
month
following
the
close
of
the
licensee’s
fiscal
22
year
shall
cause
a
license
to
expire.
23
3.
A
warehouse
license
that
has
expired
may
be
reinstated
by
24
the
department
upon
receipt
of
a
proper
renewal
application,
25
the
renewal
fee
,
and
the
reinstatement
fee
as
provided
for
in
26
imposed
under
section
203C.33
,
and
any
delinquent
participation
27
fee
as
provided
in
section
203D.3A
.
The
applicant
must
file
28
the
renewal
application
and
pay
the
fees
renewal
fee
and
29
reinstatement
fee
to
the
department
within
thirty
days
from
the
30
date
that
the
warehouse
license
expires.
31
Sec.
19.
Section
203D.1,
Code
2023,
is
amended
by
adding
the
32
following
new
subsection:
33
NEW
SUBSECTION
.
15A.
“State
assessment”
means
the
state
34
assessment
on
corn
imposed,
suspended,
or
reinstated
as
35
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provided
in
sections
185C.26
and
203D.3B.
1
Sec.
20.
Section
203D.2,
Code
2023,
is
amended
to
read
as
2
follows:
3
203D.2
Persons
participating
in
fund
——
compliance
.
4
1.
All
licensed
grain
dealers
,
including
persons
applying
5
to
be
issued
or
renewed
grain
dealer
licenses
as
provided
6
in
chapter
203,
and
licensed
warehouse
operators
,
including
7
persons
applying
to
be
issued
or
renewed
warehouse
operator
8
licenses
as
provided
in
chapter
203C,
shall
participate
in
the
9
fund.
10
2.
a.
Participation
in
the
fund
by
a
licensed
grain
dealer
11
includes
complying
with
this
chapter
and
chapter
203.
12
b.
Participation
in
the
fund
by
a
licensed
warehouse
13
operator
includes
complying
with
this
chapter
and
chapter
203C.
14
3.
This
section
does
not
require
participation
in
the
fund
15
to
include
payment
of
a
fee
for
deposit
into
the
fund.
16
Sec.
21.
Section
203D.3,
subsection
2,
Code
2023,
is
amended
17
to
read
as
follows:
18
2.
The
fund
consists
of
all
of
the
following:
19
a.
Participation
fees
paid
to
the
department
by
licensed
20
grain
dealers
and
persons
applying
to
be
issued
a
grain
21
dealer’s
license
as
provided
in
section
203D.3A
.
The
state
22
assessment
collected
pursuant
to
chapter
185C
and
transferred
23
to
the
fund
pursuant
to
section
185C.26
and
this
chapter,
24
including
section
203D.3B.
25
b.
Participation
fees
paid
to
the
department
by
licensed
26
warehouse
operators
and
persons
applying
to
be
issued
a
27
warehouse
operator’s
license
as
provided
in
section
203D.3A
.
28
c.
Per-bushel
fees
paid
to
the
department
by
licensed
grain
29
dealers
as
provided
in
section
203D.3A
.
30
d.
Delinquency
penalties.
31
e.
b.
Amounts
collected
by
the
state
pursuant
to
legal
32
action
on
behalf
of
the
fund.
33
f.
c.
Interest,
earnings
on
investments,
property,
or
34
securities
acquired
through
the
use
of
moneys
in
the
fund.
35
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Sec.
22.
NEW
SECTION
.
203D.3B
Grain
depositors
and
sellers
1
indemnity
fund
——
administration
of
state
assessment
on
corn.
2
1.
The
board
shall
annually
review
the
debits
of
and
credits
3
to
the
grain
depositors
and
sellers
indemnity
fund.
4
2.
The
state
assessment
shall
be
imposed
effective
July
1,
5
2023.
6
3.
Beginning
May
1,
2024,
and
not
later
than
May
1
of
7
each
year
thereafter,
the
board
shall
determine
whether
to
8
suspend
or
reinstate
the
state
assessment.
The
suspension
or
9
reinstatement
of
the
state
assessment
is
effective
beginning
10
on
the
following
July
1.
11
4.
a.
Notwithstanding
subsection
3,
if
on
the
last
day
of
12
the
fund’s
fiscal
year
as
provided
in
section
203D.3,
moneys
13
in
the
fund
exceed
twenty
million
dollars,
less
any
encumbered
14
balances
or
pending
or
unsettled
claims,
the
state
assessment
15
shall
be
suspended
effective
on
the
first
day
of
the
following
16
fiscal
year.
17
b.
Notwithstanding
subsection
3,
if
at
any
time
moneys
in
18
the
fund
do
not
exceed
ten
million
dollars,
less
any
encumbered
19
balances
or
pending
or
unsettled
claims,
the
state
assessment
20
shall
be
reinstated
effective
on
the
first
day
of
the
following
21
fiscal
year.
22
5.
a.
If
the
state
assessment
is
suspended
as
provided
23
in
this
section,
the
department
of
agriculture
and
land
24
stewardship
shall
immediately
deliver
a
state
assessment
25
transfer
suspension
notice
to
the
department
of
administrative
26
services
as
provided
in
section
185C.26.
27
b.
If
the
state
assessment
is
reinstated
as
provided
in
this
28
section,
the
department
of
agriculture
and
land
stewardship
29
shall
immediately
deliver
a
state
assessment
transfer
30
reinstatement
notice
to
the
department
of
administrative
31
services
as
provided
in
section
185C.26.
32
Sec.
23.
Section
203D.4,
subsections
2
and
3,
Code
2023,
are
33
amended
to
read
as
follows:
34
2.
a.
The
duties
of
the
board
include
the
review
and
35
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determination
of
claims,
and
the
review
and
approval
of
1
administrative
costs
of
the
fund.
To
carry
out
these
2
duties,
the
board
has
the
power
to
adopt
rules
regarding
its
3
organization
and
procedures
for
determining
claims.
Further,
4
the
board
shall
approve
rules
proposed
by
the
department
5
for
the
administration
of
the
per-bushel
fee
prior
to
their
6
adoption
by
the
department.
7
b.
The
board
may
provide
comment
and
advice
to
the
8
department
in
regard
to
the
department’s
administration
of
9
chapters
203
and
203C
where
the
department’s
policies
and
rules
10
may
affect
the
exposure
of
the
fund
to
liability.
However,
the
11
board
shall
not
become
actively
involved
in
a
determination
by
12
the
department
as
to
whether
disciplinary
action
is
to
be
taken
13
against
a
particular
licensee.
The
board
is
not
a
forum
for
14
review
or
appeal
in
regard
to
any
particular
action
taken
by
15
the
department
against
a
licensee.
16
3.
a.
The
department
through
the
grain
warehouse
bureau
17
shall
perform
the
administrative
functions
necessary
for
the
18
operation
of
the
board
and
the
fund.
Administrative
costs
19
approved
by
the
board
shall
be
paid
from
the
fund.
The
rules
20
of
the
department
shall
contain
the
rules
of
the
board
adopted
21
for
its
organization
and
its
procedures.
The
department
shall
22
adopt
rules
for
the
administration
of
the
per-bushel
fee
upon
23
the
board’s
approval
of
the
rules
proposed
by
the
department.
24
b.
The
secretary
of
agriculture,
as
president
of
the
board
25
as
well
as
head
of
the
department
of
agriculture
and
land
26
stewardship,
shall
administer
the
department
so
as
to
minimize
27
the
risk
of
loss
to
the
fund
while
protecting
interests
of
28
depositors
and
sellers
of
grain.
Policies
and
rules
for
the
29
administration
of
chapters
203
and
203C
which,
as
determined
30
by
the
secretary
of
agriculture,
may
affect
the
exposure
of
31
the
fund,
shall
be
presented
to
the
board
for
comment
prior
to
32
their
adoption
by
the
department.
33
c.
The
department
shall
make
reports
to
the
board
in
regard
34
to
licensee
investigations
which
may
result
in
disciplinary
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action
against
a
licensee
and
exposure
of
the
fund.
The
1
reports
may
be
discussed
by
the
board
in
closed
session
2
pursuant
to
section
21.5
,
and
are
confidential.
In
making
3
the
report,
the
department
shall
make
available
to
the
board
4
records
of
licensees
which
are
otherwise
confidential
under
5
section
22.7
,
203.16
,
or
203C.24
.
However,
a
determination
6
to
take
disciplinary
action
against
a
particular
licensee
7
shall
be
made
exclusively
by
the
department.
A
report
to
the
8
board
is
not
a
prerequisite
to
disciplinary
action
against
a
9
licensee.
Review
of
any
action
against
a
licensee,
whether
or
10
not
relating
to
the
fund,
shall
be
made
exclusively
through
the
11
department.
12
Sec.
24.
Section
203D.6,
subsection
8,
Code
2023,
is
amended
13
to
read
as
follows:
14
8.
Payment
of
claims.
15
a.
Upon
a
determination
that
the
claim
is
eligible
for
16
payment,
the
board
shall
provide
for
payment
of
ninety
percent
17
of
the
loss,
as
determined
under
subsection
5
,
but
not
more
18
than
three
six
hundred
thousand
dollars
per
claimant.
19
b.
If
at
any
time
the
board
determines
that
there
are
20
insufficient
funds
moneys
in
the
fund
to
make
payment
of
21
all
claims,
the
board
may
order
that
payment
be
deferred
22
on
specified
claims.
The
department,
upon
the
board’s
23
instruction,
shall
hold
those
claims
for
payment
until
the
24
board
determines
that
the
fund
again
contains
there
are
25
sufficient
assets
moneys
in
the
fund
to
pay
deferred
claims
.
26
Sec.
25.
REPEAL.
Sections
203D.3A
and
203D.5,
Code
2023,
27
are
repealed.
28
EXPLANATION
29
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
30
the
explanation’s
substance
by
the
members
of
the
general
assembly.
31
BACKGROUND
——
GRAIN
DEPOSITORS
AND
SELLERS
INDEMNITY
FUND.
32
This
bill
amends
provisions
regulating
grain
dealers
purchasing
33
grain
(Code
chapter
203),
and
grain
warehouse
operators
storing
34
grain
under
bailment
(Code
chapter
203C).
A
grain
dealer
35
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or
warehouse
operator
must
do
business
in
this
state
under
1
a
license
issued
by
the
department
of
agriculture
and
land
2
stewardship
(DALS).
The
licensed
grain
dealer
and
licensed
3
warehouse
operator
(licensees)
pay
license
fees
for
deposit
in
4
the
general
fund
(Code
sections
203.6
and
203C.33).
A
person
5
selling
grain
to
a
licensed
grain
dealer
(seller)
or
depositing
6
grain
with
a
licensed
warehouse
operator
(depositor)
may
be
7
reimbursed
for
a
loss
incurred
by
the
failure
of
the
licensee
8
to
honor
a
contractual
obligation
regarding
the
transaction
9
(Code
section
203D.6).
Upon
a
determination
that
the
claim
10
is
eligible
for
payment,
the
Iowa
grain
indemnity
fund
board
11
(indemnity
board)
provides
for
payment
of
90
percent
of
the
12
loss,
but
not
more
than
$300,000.
The
indemnity
board
may
13
defer
a
claim
if
there
are
insufficient
assets
in
the
fund
to
14
fully
cover
a
loss.
The
indemnity
fund
is
paid
from
several
15
sources,
including
a
participation
fee
paid
by
those
grain
16
dealers
and
warehouse
operators
(persons
applying
for
or
17
renewing
a
license)
and
a
per-bushel
fee
paid
only
by
those
18
grain
dealers
(Code
sections
203D.3A
and
203D.5).
For
grain
19
dealers,
the
amount
of
the
participation
fee
is
based
on
20
purchased
grain
during
the
grain
dealer’s
last
fiscal
year,
and
21
for
warehouse
operators,
the
amount
of
the
participation
fee
22
is
based
on
warehouse
storage
capacity.
The
maximum
amount
of
23
the
participation
fee
is
.014
of
1
cent
per
bushel
of
either
24
purchased
or
stored
grain
with
a
minimum
required
amount
of
25
$50.
The
per-bushel
fee
is
also
based
on
purchased
grain
with
26
a
maximum
of
$0.25
per
bushel.
The
moneys
available
in
the
27
indemnity
fund
are
calculated
by
subtracting
from
the
balance
28
any
unencumbered
obligations
or
pending
claims
(Code
section
29
203D.6).
The
indemnity
fund
is
managed
on
a
state
fiscal
year
30
basis
(July
1
to
June
30).
By
May
1
of
each
year,
the
indemnity
31
board
may
impose,
reinstate,
adjust,
or
waive
the
fees.
32
However,
if
on
the
last
date
of
the
fund’s
fiscal
year,
the
33
moneys
in
the
indemnity
fund
exceed
a
ceiling
of
$8
million,
34
the
two
fees
are
waived.
If
at
any
time
moneys
in
the
indemnity
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fund
are
at
a
floor
of
$3
million
or
less,
the
indemnity
fees
1
are
reinstated
(Code
section
203D.5).
2
BACKGROUND
——
CORN
CHECKOFFS.
An
excise
tax
or
“assessment”
3
is
imposed
on
the
first
purchaser
of
a
number
of
commodities
4
as
a
pass-through
(commonly
referred
to
as
a
“checkoff”).
5
The
purpose
of
the
assessment
is
to
finance
activities
which
6
involve
improving
market
development
which
includes
aspects
7
related
to
the
commodity’s
production
and
market
share,
such
8
as
research
and
education.
Depending
upon
the
commodity,
the
9
assessment
is
implemented
and
administered
under
either
a
state
10
or
federal
statute
or
both.
An
assessment
takes
effect,
is
11
continued,
or
is
terminated
on
the
basis
of
a
majority
vote
12
of
producers
voting
in
a
referendum
conducted
by
the
United
13
States
department
of
agriculture
in
the
case
of
a
federal
14
assessment
or
DALS
in
the
case
of
a
state
assessment.
The
15
checkoff
moneys
imposed
due
to
the
state
or
federal
assessment
16
are
collected
and
expended
pursuant
to
a
promotional
order
17
under
the
direction
of
a
governing
body
of
elected
producers
18
(referred
to
as
a
board,
committee,
or
council).
For
corn,
19
the
state
has
implemented
and
administers
a
state
assessment
20
(Code
chapter
185C)
under
the
direction
of
the
Iowa
corn
21
promotion
board
(Code
sections
185C.8,
185C.11,
and
185C.13).
22
The
maximum
amount
of
the
state
assessment
for
corn
is
3
cents
23
per
bushel
(Code
section
185C.21)
subject
to
a
right
of
refund
24
(Code
section
185C.27).
For
each
commodity
subject
to
a
state
25
assessment,
including
corn,
the
collected
checkoff
moneys
are
26
deposited
into
a
separate
state-controlled
fund
established
27
in
the
state
treasury
(state
fund)
and
transferred
by
the
28
department
of
administrative
services
(DAS)
to
an
account
in
a
29
qualified
financial
institution
eligible
to
hold
public
funds
30
(Code
chapter
12C)
and
established
by
the
governing
body
of
the
31
commodity
organization;
in
this
case
the
Iowa
corn
promotion
32
board.
33
BILL’S
PROVISIONS.
The
bill
eliminates
the
indemnity
fees
34
paid
to
DALS
by
licensees
used
to
support
the
indemnity
fund
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(Code
sections
203D.3A
and
203D.5).
The
bill
replaces
that
1
funding
source
with
checkoff
moneys
collected
from
state
2
assessments
imposed
on
corn.
The
bill
provides
that
market
3
development
for
corn
expressly
includes
the
production,
4
storage,
and
marketing
of
corn
in
commercial
channels
(amended
5
Code
section
185C.1).
The
name
of
the
state-controlled
fund
6
is
changed
from
the
corn
promotion
fund
to
the
corn
marketing
7
fund
(amended
Code
section
185C.26).
The
account
under
the
8
control
of
the
Iowa
corn
promotion
board
is
named
“the
corn
9
checkoff
account”.
Under
the
bill,
25
percent
of
moneys
in
the
10
fund
are
transferred
to
the
indemnity
fund
and
appropriated
11
for
use
by
DALS
and
the
indemnity
board
to
support
claims
for
12
losses
by
depositors
and
sellers
(amended
Code
sections
185C.26
13
and
185C.28).
Moneys
deposited
into
the
corn
marketing
fund
14
and
transferred
to
the
corn
checkoff
account
or
the
indemnity
15
fund
are
public
funds
(amended
Code
section
185C.34).
The
16
bill
increases
the
limits
of
the
indemnity
fund
to
a
ceiling
17
of
$20
million,
and
a
floor
of
$10
million.
On
May
1,
the
18
indemnity
board
must
determine
to
suspend
or
reinstate
the
19
state
assessment.
However,
if
on
the
last
day
of
the
indemnity
20
fund’s
fiscal
year,
moneys
in
the
fund
reach
the
$20
million
21
ceiling,
the
state
assessment
is
suspended,
and
if
at
any
time
22
those
moneys
reach
the
$10
million
floor,
the
state
assessment
23
is
reinstated
(new
Code
section
203D.3B).
In
either
case,
DALS
24
must
notify
DAS
of
the
suspension
or
reinstatement.
Finally,
25
the
indemnity
fund’s
payout
limit
for
a
claim
is
increased
to
26
$600,000
(Code
section
203D.6).
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