Bill Summary – FastDemocracy

Senate Study Bill 1205 - Introduced
                                  SENATE FILE _____
                                  BY (PROPOSED COMMITTEE ON
                                      WAYS AND MEANS BILL BY
                                      CHAIRPERSON DAWSON)
                            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 and soybeans,
  increasing moneys deposited into the grain depositors and
  sellers indemnity fund, increasing indemnification amounts,
  and making appropriations.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
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    Section 1. Section 185.1, subsection 7, Code 2023, is
 amended to read as follows:
    7. “Market development” means to engage improve the economic
 conditions of soybean production, storage, and marketing, by
 engaging in research and educational programs directed toward
 better and more efficient production, storage, and utilization
 of soybeans; to provide providing methods and means, including
 but not limited to, public relations and other promotion
 techniques for the maintenance of present markets; to provide
 ensuring the security of soybeans stored and marketed in
 commercial channels; providing for the development of new or
 larger domestic and foreign markets; and to provide providing
 for the prevention, modification, or elimination of trade
 barriers which obstruct the free flow of soybeans.
    Sec. 2. Section 185.13, Code 2023, is amended by adding the
 following new subsection:
    NEW SUBSECTION. 7. Accept gifts or federal or state grants
 received by the board. Any moneys accepted by the board
 shall be deposited in an account of a qualified financial
 institution.
    Sec. 3. Section 185.21, subsection 2, Code 2023, is amended
 to read as follows:
    2. The state assessment shall be paid deposited into the
 soybean promotion marketing fund established in section 185.26.
    Sec. 4. Section 185.26, Code 2023, is amended to read as
 follows:
    185.26 Administration Deposit of moneys collected from state
 assessment —— soybean marketing fund —— transfers.
    1. The Moneys from the state assessment collected by
 the board from the sale of soybeans shall be deposited in a
 special fund known as the soybean promotion marketing fund,
 established in the office of the treasurer of state. The fund
 may also contain any gifts or federal or state grant received
 by the board. Moneys collected, deposited into in the soybean
 marketing fund, and transferred to the board, as provided in
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 this chapter, shall be subject to audit by the auditor of
 state. The
    2. a. Except as provided in paragraph “b”, the department
 of administrative services shall transfer moneys from the
 soybean marketing fund to the board for deposit into in an
 account known as the soybean checkoff account which shall be
 established by the board in a qualified financial institution.
 The department of administrative services shall transfer the
 moneys into to the soybean checkoff account as provided in a
 resolution adopted by the board. However, the department is
 only required to transfer moneys once during each day and only
 during hours when the offices of the state are open. From
 moneys collected, deposited, and transferred to the soybean
 checkoff account as provided in this section, the board shall
 first pay the costs of referendums, elections, and other
 expenses incurred in the administration of this chapter,
 before the transferred moneys may be expended to carry out the
 purposes of the board as provided in section 185.11. The board
 shall strictly segregate moneys in the soybean checkoff account
 from all other moneys of the board. Moneys in the soybean
 checkoff account shall be expended by the board exclusively
 for use as provided in section 185.28, including for carrying
 out the purposes of the board as provided in section 185.11.
 The soybean checkoff account shall be subject to audit by the
 auditor of state.
    b. (1) Except as otherwise provided in subparagraph
 (2), twenty-five percent of moneys deposited in the soybean
 marketing fund shall be transferred to the grain depositors
 and sellers indemnity fund created in section 203D.3 for use
 as provided in section 185.28.
    (2) If the department of agriculture and land stewardship
 delivers a state assessment transfer suspension notice to the
 department of administrative services as provided in section
 203D.3B, moneys that would otherwise be transferred to the
 grain depositors and sellers indemnity fund as described in
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 subparagraph (1) shall instead be transferred to the soybean
 checkoff account for use by the board in the same manner
 provided in paragraph “a”.
    (3) If the department of agriculture and land stewardship
 delivers a state assessment transfer reinstatement notice
 to the department of administrative services as provided in
 section 203D.3B, moneys that would otherwise be transferred to
 the soybean checkoff account under subparagraph (2) shall again
 be transferred to the grain depositors and sellers indemnity
 fund in the same manner described in subparagraph (1).
    c. The department of administrative services is only
 required to transfer moneys under this subsection to the
 soybean checkoff account and the grain depositors and sellers
 indemnity fund once during each day and only during hours when
 the offices of the state are open.
    2. 3. The fiscal year of the association shall commence on
 October 1 and end on September 30.
    Sec. 5. Section 185.28, Code 2023, is amended to read as
 follows:
    185.28 Use of moneys —— appropriation appropriations.
    1. All Except as provided in subsection 2, moneys collected,
 deposited, and transferred to or accepted by the board as
 provided in this chapter, are appropriated and shall be used
 for the administration of this chapter by the board and for the
 payment of claims by the board based upon obligations incurred
 in the performance of board activities and functions provided
 in this chapter.
    2. Moneys transferred from the soybean marketing fund to
 the grain depositors and sellers indemnity fund as provided in
 section 185.26 are appropriated for use by the department of
 agriculture and land stewardship and the Iowa grain indemnity
 fund board as provided in chapter 203D.
    Sec. 6. Section 185.30, Code 2023, is amended to read as
 follows:
    185.30 Bond.
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    Every A person occupying a position of trust with the
 board and acting under any provisions a provision of this
 chapter shall provide post a bond in an amount required by the
 board. The premium for the bond shall be paid out of moneys
 transferred from in the soybean promotion fund to the board
 pursuant to checkoff account established in section 185.26.
    Sec. 7. Section 185.33, Code 2023, is amended to read as
 follows:
    185.33 Report.
    The board shall each year prepare and submit a report
 summarizing the activities of the board under this chapter to
 the auditor of state and the secretary of agriculture. The
 report shall show all income, expenses, and other relevant
 information concerning fees moneys collected by the board,
 deposited by the board in an account, transferred to the board,
 and expended by the board under the provisions of this chapter.
    Sec. 8. Section 185.34, subsection 2, paragraph b,
 subparagraph (2), Code 2023, is amended to read as follows:
    (2) A public body for purposes of chapter 12C. Moneys
 deposited into the soybean checkoff account as established in
 section 185.26 shall be deemed to be public funds under chapter
 12C.
    Sec. 9. Section 185.34, Code 2023, is amended by adding the
 following new subsection:
    NEW SUBSECTION. 3. Moneys deposited in the soybean
 marketing fund and transferred to the soybean checkoff account
 as established in section 185.26 or the grain depositors and
 sellers indemnity fund as provided in that section shall be
 deemed to be public funds under chapter 12C.
    Sec. 10. Section 185.35, subsection 2, Code 2023, is amended
 to read as follows:
    2. Subsection 1 does not apply to a any of the following:
    a. A communication or action taken by the board if any of
 the following applies:
    a. (1) The board may communicate or take action directed
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 to an appropriate government official or government relating
 to the marketing of soybeans or soybean products to a foreign
 country.
    b. (2) The communication or action relates to the
 prevention, modification, or elimination of trade barriers.
    b. Moneys transferred to the grain depositors and sellers
 indemnity fund as provided in section 185.26.
    Sec. 11. Section 185C.1, subsection 9, Code 2023, is amended
 to read as follows:
    9. “Market development” means to engage improve the economic
 conditions of corn production, storage, and marketing, by
 engaging in research and educational programs directed toward
 better and more efficient production, storage, and utilization
 of corn; to provide providing methods and means, including but
 not limited to, public relations and other promotion techniques
 for the maintenance of present markets; to provide ensuring
 the security of corn to be stored and marketed in commercial
 channels; providing for the development of new or larger
 domestic and foreign markets; and to provide providing for the
 prevention, modification, or elimination of trade barriers
 which obstruct the free flow of corn.
    Sec. 12. Section 185C.11, subsection 1, Code 2023, is
 amended by adding the following new paragraphs:
    NEW PARAGRAPH. j. Administer the corn checkoff account as
 provided in section 185C.26.
    NEW PARAGRAPH. k. Accept gifts, rents, royalties, interest,
 license fees, or federal or state grants. Any moneys accepted
 by the board shall be deposited in an account of a qualified
 financial institution.
    Sec. 13. Section 185C.21, subsection 1, Code 2023, is
 amended to read as follows:
    1. The board shall determine and set the state assessment
 rate. State assessments collected pursuant to the promotional
 order shall be paid into the corn promotion marketing fund
 established in section 185C.26. Except as provided in
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 subsection 2, a state assessment shall not exceed one-quarter
 of one cent per bushel upon corn marketed in this state.
    Sec. 14. Section 185C.24, subsections 1 and 2, Code 2023,
 are amended to read as follows:
    1. The board shall be suspended and board operations and
 terms of members shall cease upon either any of the following
 events:
    a. The state assessment is terminated pursuant to section
 185C.25.
    b. The state assessment is suspended pursuant to section
 185C.25A.
    2. However, notwithstanding subsection 1, the board
 shall continue to operate until proceeds remaining in moneys
 transferred from the corn promotion marketing fund to the corn
 checkoff account are disbursed. Disbursement shall be made
 as provided for payment the transfer of moneys under section
 185C.26.
    Sec. 15. Section 185C.26, Code 2023, is amended to read as
 follows:
    185C.26 Deposit of moneys —— corn promotion marketing fund
 —— transfers.
    1. A Moneys from the state assessment collected by the Iowa
 corn promotion board from a the sale of corn shall be deposited
 in the office of the treasurer of state in a special fund known
 as the corn promotion marketing fund established in the office
 of the treasurer of state. The fund may include any gifts,
 rents, royalties, interest, license fees, or a federal or state
 grant received by the board. Moneys collected, deposited
 in the corn marketing fund, and transferred to the board as
 provided in this chapter shall be subject to audit by the
 auditor of state. The auditor of state may seek reimbursement
 for the cost of the audit from moneys deposited in the corn
 marketing fund as provided in this chapter. The department of
 administrative services shall transfer moneys from the fund
    2. a. Except as provided in paragraph “b”, the department
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 of administrative services shall transfer moneys deposited
 in the corn marketing fund to the board for deposit into in
 an account known as the corn checkoff account which shall be
 established by the board in a qualified financial institution.
 The department of administrative services shall transfer the
 moneys to the corn checkoff account as provided in a resolution
 adopted by the board. However, the department is only required
 to transfer moneys once during each day and only during hours
 when the offices of the state are open. From moneys collected,
 transferred to the corn checkoff account, the board shall first
 pay all the direct and indirect costs incurred by the secretary
 and the costs of referendums, elections, and other expenses
 incurred in the administration of this chapter, before the
 transferred moneys may be expended to carry for other uses as
 provided in section 185C.28, including for carrying out the
 purposes of this chapter as provided in section 185C.11.
    b. (1) Except as otherwise provided in subparagraph (2),
 twenty-five percent of moneys deposited in the corn marketing
 fund shall be transferred to the grain depositors and sellers
 indemnity fund created in section 203D.3 for use as provided
 in section 185C.28.
    (2) If the department of agriculture and land stewardship
 delivers a state assessment transfer suspension notice to the
 department of administrative services as provided in section
 203D.3B, moneys that would otherwise be transferred to the
 grain depositors and sellers indemnity fund as described in
 subparagraph (1) shall instead be transferred to the corn
 checkoff account for use by the board in the same manner
 provided in paragraph “a”.
    (3) If the department of agriculture and land stewardship
 delivers a state assessment transfer reinstatement notice
 to the department of administrative services as provided in
 section 203D.3B, moneys that would otherwise be transferred to
 the corn checkoff account under subparagraph (2) shall again be
 transferred to the grain depositors and sellers indemnity fund
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 in the same manner described in subparagraph (1).
    c. The department of administrative services is only
 required to transfer moneys under this subsection to the corn
 checkoff account and the grain depositors and sellers indemnity
 fund once during each day and only during hours when the
 offices of the state are open.
    Sec. 16. Section 185C.28, Code 2023, is amended to read as
 follows:
    185C.28 Use of moneys —— appropriation appropriations.
    1. Moneys deposited in the corn promotion fund and
 transferred to Except as provided in subsection 2, moneys
 transferred or accepted by the board, as provided in section
 185C.26, including federal moneys to the extent permitted
 by federal law, are appropriated and shall be used for
 the administration of this chapter and for the payment of
 claims based upon obligations incurred in the performance of
 activities and functions provided in this chapter.
    2. Moneys transferred from the corn marketing fund to the
 grain depositors and sellers indemnity fund as provided in
 section 185C.26 are appropriated for use by the department of
 agriculture and land stewardship and the Iowa grain indemnity
 fund board as provided in chapter 203D.
    Sec. 17. Section 185C.29, subsection 1, Code 2023, is
 amended to read as follows:
    1. After the dir