Bill Text: IA SSB3131 | 2015-2016 | 86th General Assembly | Introduced


Bill Title: A study bill for an act providing for the administration of certain excise taxes imposed on the sale of cattle.

Spectrum: Unknown

Status: (Introduced - Dead) 2016-02-17 - Voted - Agriculture. [SSB3131 Detail]

Download: Iowa-2015-SSB3131-Introduced.html
Senate Study Bill 3131 - Introduced SENATE FILE _____ BY (PROPOSED COMMITTEE ON AGRICULTURE BILL BY CHAIRPERSON SENG) A BILL FOR An Act providing for the administration of certain excise taxes 1 imposed on the sale of cattle. 2 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 3 TLSB 5778XC (2) 86 da/rj
S.F. _____ Section 1. Section 181.1, subsection 3, Code 2016, is 1 amended by striking the subsection and inserting in lieu 2 thereof the following: 3 3. “Executive committee” means the executive committee of 4 the association as created in section 181.3. 5 Sec. 2. Section 181.1, subsection 6, paragraph b, Code 2016, 6 is amended to read as follows: 7 b. The person acquired ownership of cattle to facilitate 8 the transfer of ownership of such cattle from the seller to a 9 third party; resold such cattle no later than ten days from the 10 date on which the person acquired ownership; and certified as 11 required by rules adopted by the council executive committee . 12 Sec. 3. Section 181.2, Code 2016, is amended to read as 13 follows: 14 181.2 Duties and objects of association. 15 The Iowa beef cattle producers association shall do all of 16 the following: 17 1. Aid in the marketing and promotion of the cattle industry 18 of the state. 19 2. Provide for practical and scientific instruction in 20 the breeding and raising of cattle Conduct research on beef 21 production and evaluate Iowa beef production needs . 22 3. Make demonstrations in the feeding of cattle and publish 23 suggestions beneficial to such business Provide educational 24 materials and opportunities to consumers, producers, and youth 25 regarding the benefits of Iowa’s beef cattle industry . 26 4. Aid and promote cattle feeding contests, shows, and 27 sales. 28 5. 4. Prepare an annual report of the proceedings and 29 expenditures of the council executive committee as provided in 30 section 181.18B . 31 Sec. 4. Section 181.3, Code 2016, is amended to read as 32 follows: 33 181.3 Iowa beef industry council Executive committee —— 34 creation and operation . 35 -1- LSB 5778XC (2) 86 da/rj 1/ 11
S.F. _____ 1. An Iowa beef industry council executive committee of the 1 Iowa beef cattle producers association is created. The council 2 executive committee consists of eight ten members, including 3 all of the following: 4 a. Five producers elected by the Iowa beef cattle producers 5 association pursuant to section 181.6A . 6 b. Two producers appointed by the Iowa cattlemen’s 7 association. 8 c. One livestock market representative appointed pursuant to 9 subsection 2 . 10 c. d. The secretary of agriculture or a designee, who shall 11 serve as a voting an ex officio , voting member. 12 d. e. The dean of the college of agriculture and life 13 sciences of Iowa state university of science and technology or 14 a designee, who shall serve as a voting an ex officio , voting 15 member. 16 2. The Iowa livestock auction market association shall 17 nominate two livestock market representatives. The secretary 18 of agriculture shall appoint one of the nominees or another 19 livestock market representative of the secretary’s choice, who 20 shall serve at the pleasure of the secretary. 21 3. The council executive committee shall elect a 22 chairperson, secretary, and other officers it deems necessary. 23 4. Except for ex officio members, vacancies in the council 24 executive committee resulting from death, inability or refusal 25 to serve, or failure to meet the qualifications of this chapter 26 shall be filled by the council executive committee . If the 27 council executive committee fails to fill a vacancy, the 28 secretary shall fill it. Vacancy appointments shall be only 29 for the remainder of the unexpired term. 30 Sec. 5. Section 181.4, Code 2016, is amended to read as 31 follows: 32 181.4 Employees of council Executive committee —— employees . 33 The council executive committee may employ two or more 34 competent persons who shall devote their entire time, under 35 -2- LSB 5778XC (2) 86 da/rj 2/ 11
S.F. _____ the direction of the council executive committee , in carrying 1 out the provisions of this chapter . The salary of persons so 2 employed shall be set by the council executive committee , and 3 the persons shall hold office at the pleasure of the council 4 executive committee . 5 Sec. 6. Section 181.6A, Code 2016, is amended to read as 6 follows: 7 181.6A Election of council Executive committee —— election . 8 1. The Iowa beef cattle producers association shall hold an 9 annual meeting of producers. An election shall be held at the 10 annual meeting, as necessary, for election of producers to the 11 council executive committee . 12 2. Prior to the annual meeting, the association shall 13 appoint a nominating committee. At least sixty days prior to 14 the annual meeting of the association, the nominating committee 15 shall nominate two producers as candidates for each position 16 on the council executive committee for which an election is to 17 be held. At least forty-five days prior to the annual meeting 18 of the association, additional candidates may be nominated by 19 a written petition of fifty producers. Procedures governing 20 the place of filing and the contents of the petition shall be 21 promulgated and publicized by the council executive committee . 22 3. Producers attending the annual meeting of the 23 association may vote for one nominee for each position on the 24 council executive committee for which an election is held. 25 Producers not attending the annual meeting of the association 26 may vote by absentee ballot if the ballot is requested and 27 mailed, with proper postage, to the council executive committee 28 prior to the annual meeting of the association. For each 29 position for which an election is held, the candidate receiving 30 the highest number of votes shall be elected. 31 4. Notice of election for council executive committee 32 membership shall be given by the council executive committee by 33 publication in a newspaper of general circulation in the state 34 and in any other reasonable manner as determined by the council 35 -3- LSB 5778XC (2) 86 da/rj 3/ 11
S.F. _____ executive committee , and shall set forth the date, time, and 1 place of the annual meeting of the association. The council 2 executive committee shall administer the elections, with the 3 assistance of the secretary. 4 Sec. 7. Section 181.7, Code 2016, is amended to read as 5 follows: 6 181.7 Research Executive committee —— research and education 7 programs. 8 The council executive committee shall initiate, administer, 9 or participate in research and education programs directed 10 toward the better and more efficient production, promotion, and 11 utilization of cattle and the marketing of products made from 12 cattle. The council executive committee shall provide for the 13 methods and means that it determines are necessary to further 14 the purposes of this section , including but not limited to any 15 of the following: 16 1. Providing public relations and other promotion 17 techniques for the maintenance of present markets. 18 2. Making donations to nonprofit organizations furthering 19 the purposes of this section . 20 3. Assisting in the development of new or larger domestic 21 markets for products made from cattle. 22 4. Assisting in the development of new or larger foreign 23 markets for cattle and products made from cattle. 24 Sec. 8. Section 181.7A, Code 2016, is amended to read as 25 follows: 26 181.7A Commencement of federal assessment —— suspension and 27 recommencement of state assessment. 28 1. Prior to the commencement of the collection of the 29 federal assessment, the council executive committee may seek 30 certification as a qualified state beef council within the 31 meaning of the federal Act. 32 2. The council executive committee shall suspend the state 33 assessment upon collection of the federal assessment. The 34 state assessment shall recommence upon the earlier of the 35 -4- LSB 5778XC (2) 86 da/rj 4/ 11
S.F. _____ following: 1 a. The noncollection of the federal assessment. The 2 recommenced state assessment shall be imposed for a four-year 3 period. Its effective date shall be the first date for which 4 the federal assessment is not collected. 5 b. The passage of a special referendum pursuant to section 6 181.19 regardless of whether a federal assessment is being 7 collected. 8 Sec. 9. Section 181.8, Code 2016, is amended to read as 9 follows: 10 181.8 Entering Executive committee —— entering premises —— 11 examining records. 12 1. The council executive committee may authorize its 13 agents to enter at a reasonable time upon the premises of any 14 purchaser charged by this chapter with remitting the state 15 assessment to the council executive committee , and to examine 16 records and other instruments relating to the collection of the 17 state assessment. However, the council executive committee 18 must first have reasonable grounds to believe that the state 19 assessment has not been remitted or fully accounted for. 20 2. The council executive committee may enter into 21 arrangements with persons purchasing cattle outside of this 22 state for remitting the state assessment by such purchasers. 23 Sec. 10. Section 181.11, Code 2016, is amended to read as 24 follows: 25 181.11 Collection of state assessment. 26 A state assessment imposed as provided in this chapter 27 shall be levied and collected from the purchaser on each sale 28 of cattle at a rate provided in this chapter . The state 29 assessment shall be imposed on any person selling cattle and 30 shall be deducted by the purchaser from the price paid to the 31 seller. The purchaser, at the time of the sale, shall make and 32 deliver to the seller a separate invoice for each sale showing 33 the names and addresses of the seller and the purchaser, the 34 number of cattle sold, and the date of sale. The purchaser 35 -5- LSB 5778XC (2) 86 da/rj 5/ 11
S.F. _____ shall forward the state assessment to the council executive 1 committee at a time prescribed by the council executive 2 committee , but not later than the last day of the month 3 following the end of the prior reporting period in which the 4 cattle are sold. 5 Sec. 11. Section 181.12, Code 2016, is amended to read as 6 follows: 7 181.12 Remission of state assessment on application. 8 A person from whom a state assessment is collected may, by 9 written application filed with the council executive committee 10 within sixty days after its collection, have the amount 11 remitted to the person by the council executive committee . The 12 information that the state assessment is refundable and the 13 address of the council executive committee to which application 14 for a refund may be made shall appear on the invoice of sale 15 form supplied by the purchaser to the producer near the area 16 on the form which shows the amount of the state assessment 17 paid. The council executive committee shall furnish uniform 18 application for refund forms and envelopes properly addressed 19 to the council to each purchaser charged by this chapter with 20 remitting the state assessment in sufficient number to make the 21 refund forms and envelopes readily available to all producers. 22 A purchaser charged by this chapter with remitting the state 23 assessment shall display the application for refund forms and 24 envelopes in a prominent position in its place of business and 25 make them the forms readily available to all producers. 26 Sec. 12. Section 181.13, Code 2016, is amended to read as 27 follows: 28 181.13 Administration of moneys originating from state 29 assessment —— appropriation. 30 1. All state assessments imposed under this chapter 31 shall be paid to and collected by the council executive 32 committee and deposited with the treasurer of state in a 33 separate cattle promotion fund which shall be created by 34 the treasurer of state. The department of administrative 35 -6- LSB 5778XC (2) 86 da/rj 6/ 11
S.F. _____ services shall transfer moneys from the fund to the council 1 executive committee for deposit into an account established 2 by the council executive committee in a qualified financial 3 institution. The department shall transfer the moneys as 4 provided in a resolution adopted by the council executive 5 committee . However, the department is only required to 6 transfer moneys once during each day and only during hours when 7 the offices of the state are open. From the moneys collected, 8 deposited, and transferred to the council executive committee , 9 in accordance with the provisions of this chapter , the council 10 executive committee shall first pay the costs of referendums 11 held pursuant to this chapter , the costs of collection of such 12 state assessments, and the expenses of its agents. At least 13 ten percent of the remaining moneys shall be remitted to the 14 association in proportions determined by the council executive 15 committee , for use in a manner not inconsistent with section 16 181.7 . The remaining moneys, with approval of a majority of 17 the council executive committee , shall be expended as the 18 council executive committee finds necessary to carry out the 19 provisions and purposes of this chapter . However, in no event 20 shall the total expenses exceed the total amount transferred 21 from the fund for use by the council executive committee . 22 2. All moneys deposited in the cattle promotion fund 23 and transferred to the council executive committee pursuant 24 to this section are appropriated and shall be used for 25 the administration of this chapter and for the payment of 26 claims based upon obligations incurred in the performance of 27 activities and functions set forth in this chapter . 28 3. If the state assessment is suspended as provided in 29 section 181.7A or a continuance referendum fails to pass as 30 provided in section 181.19A , moneys remaining in the cattle 31 promotion fund and transferred to the council executive 32 committee shall continue to be transferred and expended in 33 accordance with the provisions of this chapter until exhausted. 34 Sec. 13. Section 181.17, Code 2016, is amended to read as 35 -7- LSB 5778XC (2) 86 da/rj 7/ 11
S.F. _____ follows: 1 181.17 Producers not members. 2 A producer who is not a member of the Iowa beef cattle 3 producers association shall be entitled to vote in elections 4 of persons to be members of the council executive committee in 5 the same manner as if the producer were a member. The members 6 elected to the council executive committee shall elect from 7 their number the officers referred to in section 181.1A . 8 Sec. 14. Section 181.18, Code 2016, is amended to read as 9 follows: 10 181.18 Rules. 11 All rules of the council heretofore or hereinafter 12 promulgated adopted by the executive committee shall be subject 13 to the provisions of chapter 17A . 14 Sec. 15. Section 181.18B, Code 2016, is amended to read as 15 follows: 16 181.18B Report. 17 Each year, the council executive committee shall prepare 18 and submit a report summarizing the activities of the council 19 executive committee under this chapter to the auditor of state 20 and the secretary of agriculture. The report shall show all 21 income, expenses, and other relevant information concerning 22 fees collected and expended under this chapter . 23 Sec. 16. Section 181.19, subsections 1 and 2, Code 2016, are 24 amended to read as follows: 25 1. The secretary shall, upon the petition of five hundred 26 producers, conduct an initial referendum to determine whether a 27 state assessment is to be imposed, at a rate established by the 28 council of executive committee not to exceed fifty cents per 29 head on all cattle sold for any purpose. 30 2. The secretary shall, upon the petition of five hundred 31 producers, conduct a special referendum to do any of the 32 following: 33 a. Determine whether a state assessment already imposed 34 shall be increased to a rate, established by the council 35 -8- LSB 5778XC (2) 86 da/rj 8/ 11
S.F. _____ executive committee , not to exceed one dollar per head on all 1 cattle sold for any purpose. 2 b. Determine whether a state assessment suspended pursuant 3 to section 181.7A is to be in addition to a federal assessment. 4 The state assessment shall be imposed at a rate of fifty cents 5 per head on all cattle sold for whatever purpose. 6 Sec. 17. Section 181.19A, subsection 3, Code 2016, is 7 amended to read as follows: 8 3. If the secretary determines that the referendum has 9 not passed, the secretary and the council executive committee 10 shall terminate the assessment in an orderly manner as soon as 11 practicable after the determination. Another referendum shall 12 not be held for at least one hundred eighty days from the date 13 that the assessment is terminated. 14 Sec. 18. TRANSITION —— APPOINTMENT AND TERMS OF EXECUTIVE 15 COMMITTEE MEMBERS. 16 1. This Act’s amendments changing the name of the “Iowa beef 17 industry council” to the “executive committee” of the Iowa beef 18 cattle producers association shall not affect the appointment 19 or term of office of a member who served on the Iowa beef 20 industry council immediately prior to the effective date of 21 this Act. That member shall continue to serve on the executive 22 committee until the member’s term expires. 23 2. The executive committee of the Iowa beef cattle producers 24 association created in section 181.3 as amended in this Act may 25 establish initial terms for the two members appointed by the 26 Iowa cattlemen’s association under that section to ensure those 27 members serve staggered terms. The executive committee shall 28 operate under 101 IAC 1.5 and 1.6 until the appointment of the 29 new members. 30 Sec. 19. TRANSITION —— ADMINISTRATIVE RULES AND OTHER 31 ACTIONS AND DOCUMENTS. Any rule, form, order, or directive 32 promulgated by the Iowa beef industry council created in 33 section 181.3, in force and effect immediately prior to the 34 effective date of this Act, shall continue in full force and 35 -9- LSB 5778XC (2) 86 da/rj 9/ 11
S.F. _____ effect until the earlier of the following: 1 1. It is amended, rescinded, or supplemented by the 2 affirmative action of the executive council of the Iowa beef 3 cattle producers association created in section 181.3, as 4 amended in this Act. 5 2. It expires by its own terms. 6 EXPLANATION 7 The inclusion of this explanation does not constitute agreement with 8 the explanation’s substance by the members of the general assembly. 9 GENERAL. This bill relates to the powers and duties of the 10 Iowa beef cattle producers association (IBCPA). It changes the 11 name of its governing entity from “Iowa beef industry council” 12 (council) to “executive committee” (committee) and adds two 13 new voting members who are producers appointed by the Iowa 14 cattlemen’s association (amended Code section 181.3). The bill 15 also eliminates certain IBCPA duties, including eliminating 16 requirements to conduct instruction regarding the breeding and 17 raising of cattle and to engage in activities that demonstrate 18 or promote cattle feeding. Instead, the IBCPA would be 19 required to engage in marketing, research, and education 20 efforts (Code section 181.2). 21 TRANSITIONAL PROVISIONS. The bill does not affect the 22 appointment or term of office of a current member of the 23 council due to its name change to a committee. It authorizes 24 the committee to establish the initial terms of office for 25 the two new appointed members. Until the new members are 26 appointed, the committee’s quorum and voting requirements 27 remain unchanged. Any rule or other legal document in effect 28 immediately prior to the bill’s effective date continues in 29 full force and effect until amended, rescinded, or supplemented 30 by the executive committee or it expires by its own terms. 31 BACKGROUND. Code chapter 181 provides that upon the passage 32 of a referendum of cattle producers, there is imposed an 33 assessment, which is an excise tax or “checkoff”, on the sale 34 of each head of cattle paid by producers (Code sections 181.15 35 -10- LSB 5778XC (2) 86 da/rj 10/ 11
S.F. _____ and 181.19), collected by first purchasers, and forwarded to 1 the council (Code section 181.11), but subject to a producer’s 2 right to demand a refund (Code section 181.12). The state 3 checkoff has been superceded by a federal checkoff under the 4 terms of the federal Beef Promotion and Research Act of 1985 5 (7 U.S.C. §2901 et seq.). Under that Act, the IBCPA has 6 been certified to serve as a “qualified state beef council” 7 administering the federal checkoff in this state although the 8 council is authorized to seek certification (Code section 9 181.7A). The council’s voting members include five producers 10 who are elected at IBCPA’s annual meeting (Code section 11 181.6A), one representative of the Iowa livestock auction 12 market association appointed by the secretary of agriculture 13 from two nominations submitted by that association or another 14 livestock market representative, the secretary of agriculture, 15 and the dean of the college of agriculture and life sciences of 16 Iowa state university of science and technology (Code section 17 181.3). 18 -11- LSB 5778XC (2) 86 da/rj 11/ 11
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