House Study Bill 132 - Introduced HOUSE FILE _____ BY (PROPOSED COMMITTEE ON AGRICULTURE BILL BY CHAIRPERSON SEXTON) A BILL FOR An Act relating to the powers and duties of the Iowa sheep 1 and wool promotion board, by changing its name to the Iowa 2 sheep promotion board, eliminating the assessment on wool, 3 changing the assessment rate on sheep, and providing for 4 the collection and expenditure of moneys imposed by the 5 assessment. 6 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 7 TLSB 1596YC (5) 91 da/ns
H.F. _____ Section 1. Section 182.1, Code 2025, is amended to read as 1 follows: 2 182.1 Definitions. 3 As used in this chapter , unless the context otherwise 4 requires: 5 1. Assessment means an excise tax on the sale of sheep or 6 wool as provided in this chapter . 7 2. Board means the Iowa sheep and wool promotion board 8 established pursuant to section 182.5 . 9 3. a. Concentration point means a location or facility 10 where sheep are assembled for purposes of sale or resale for 11 feeding, breeding, or slaughtering, and where contact may occur 12 between groups of sheep from various sources. 13 b. Concentration point includes a public stockyard, 14 auction market, street market, state or federal market, 15 untested consignment sales location, buying station, or a 16 livestock dealers yard, truck, or facility. 17 4. Department means the department of agriculture and land 18 stewardship. 19 4. 5. District means an official crop reporting district 20 formed by the United States department of agriculture and set 21 out in the annual farm census published by the Iowa department 22 of agriculture and land stewardship. 23 5. 6. First purchaser means a person who purchases sheep 24 or wool from a producer. 25 6. 7. Producer means a person who is actively engaged 26 within this state in the business of producing or marketing 27 and selling sheep or wool and who receives income from the 28 production of sheep or wool . 29 7. 8. Sale , sell , or sold means a commercial 30 transaction in which the property ownership interest in or 31 to sheep or wool is transferred from the producer to a first 32 purchaser in exchange for full or partial consideration. 33 8. 9. Secretary means the secretary of agriculture. 34 9. 10. Sheep means an animal of the ovine species, 35 -1- LSB 1596YC (5) 91 da/ns 1/ 10
H.F. _____ regardless of age, produced or marketed in this state. 1 10. 11. Sheep product means an item derived from a live 2 or slaughtered sheep, including but not limited to bones, milk, 3 manure, mutton or lamb, sheepskin, or wool. 4 12. Wool means the natural fiber produced by sheep. 5 Sec. 2. Section 182.3, Code 2025, is amended to read as 6 follows: 7 182.3 Notice of referendum. 8 1. The secretary shall give notice of the referendum on 9 the question of whether to establish an Iowa sheep and wool 10 promotion board and to impose the assessment by publishing the 11 notice for a period of not less than five days in at least one 12 newspaper of general circulation in the state. The notice 13 shall state the voting places, period of time for voting, and 14 other information deemed necessary by the secretary. 15 2. A referendum shall not be commenced until five days after 16 the last date of the notices publication. 17 Sec. 3. Section 182.4, Code 2025, is amended to read as 18 follows: 19 182.4 Establishment of sheep and wool promotion board 20 assessment termination. 21 1. Each producer who signs a statement certifying that 22 the producer is a bona fide producer is entitled to one 23 vote. At the close of the referendum, the secretary shall 24 count and tabulate the ballots cast. If a majority of voters 25 favor establishing an Iowa sheep and wool promotion board 26 and imposing an assessment, an Iowa sheep and wool promotion 27 board shall be established. The assessment shall be imposed 28 commencing not more than sixty days following the referendum 29 as determined by the Iowa sheep and wool promotion board, and 30 shall continue until terminated by a referendum as provided 31 in subsection 2 . If a majority of the voters do not favor 32 establishing an Iowa sheep and wool promotion board and 33 imposing the assessment, the assessment shall not be imposed 34 and the board shall not be established until another referendum 35 -2- LSB 1596YC (5) 91 da/ns 2/ 10
H.F. _____ is held under this chapter and a majority of the voters 1 favor establishing a board and imposing the assessment. If a 2 referendum fails, another referendum shall not be held within 3 one hundred eighty days. 4 2. Upon receipt of a petition signed by at least twenty-five 5 producers in each district requesting a referendum election 6 to determine whether to terminate the establishment of the 7 Iowa sheep and wool promotion board and to terminate the 8 imposition of the assessment, the secretary shall call a 9 referendum to be conducted within sixty days following the 10 receipt of the petition. The petitioners shall guarantee 11 the payment of the costs of a referendum held under this 12 subsection . If the majority of the voters of a referendum 13 do not favor termination, an additional referendum may shall 14 be held when the secretary receives a petition signed by at 15 least twenty-five producers in each district. However, the 16 additional referendum shall not be held within one hundred 17 eighty days. 18 Sec. 4. Section 182.5, Code 2025, is amended to read as 19 follows: 20 182.5 Composition of board. 21 The Iowa sheep and wool promotion board established pursuant 22 to section 182.4 shall be composed of nine producers. The 23 dean of the college of agriculture and life sciences of Iowa 24 state university of science and technology or the deans 25 representative and the secretary or the secretarys designee 26 shall serve as ex officio, nonvoting members of the board. The 27 board shall annually elect a chairperson from its membership. 28 Sec. 5. Section 182.10, Code 2025, is amended to read as 29 follows: 30 182.10 Vacancies. 31 The Iowa sheep promotion board shall by appointment fill an 32 unexpired term if a vacancy occurs on the board. The board 33 shall select a producer as an appointee based on the criteria 34 established by the board. 35 -3- LSB 1596YC (5) 91 da/ns 3/ 10
H.F. _____ Sec. 6. Section 182.11, Code 2025, is amended to read as 1 follows: 2 182.11 Purposes of board. 3 The purposes of the Iowa sheep promotion board shall be to 4 include all of the following : 5 1. Enter To enter into contracts or agreements with or make 6 grants to recognized and qualified agencies, individuals, or 7 organizations persons for the development and carrying out 8 administration of research and education programs directed 9 toward better and more efficient production, marketing, and 10 utilization of sheep and wool and their sheep products. 11 2. Provide To provide methods and means, including , but not 12 limited to , public relations and other promotion techniques 13 for the maintenance of present markets for sheep and sheep 14 products . 15 3. Assist To assist in the development of new or larger 16 markets, both domestic and foreign, for sheep and wool and 17 their sheep products. 18 Sec. 7. Section 182.12, Code 2025, is amended to read as 19 follows: 20 182.12 Powers and duties of board . 21 The Iowa sheep promotion board may do any of the following : 22 1. Administer and enforce this chapter and perform acts 23 reasonably necessary to effectuate the purposes of this section 24 chapter . 25 2. Employ and discharge assistants and professional counsel 26 as necessary, prescribe their duties and powers, and fix their 27 compensation. 28 3. Establish offices, incur expenses, and enter into any 29 contracts or agreements necessary to carry out the purposes of 30 this chapter . 31 4. Adopt, rescind, and amend all proper and necessary rules 32 for the exercise of its powers and duties. 33 5. Enter into arrangements for the collection of the 34 per-head assessment on sheep and wool . 35 -4- LSB 1596YC (5) 91 da/ns 4/ 10
H.F. _____ 6. Formulate and execute assessment procedures and methods 1 of for the imposition and collection of the per-head assessment 2 on sheep . 3 7. Receive and investigate complaints and violations of 4 this chapter and take necessary related action. 5 8. Confer and cooperate with the department, legally 6 constituted authorities of other states , and the United States. 7 9. Establish one or more accounts in adequately protected 8 financial institutions to receive, hold, and disburse board 9 moneys. 10 Sec. 8. Section 182.13A, Code 2025, is amended to read as 11 follows: 12 182.13A Not a state agency. 13 The Iowa sheep and wool promotion board is not an agency of 14 state government. 15 Sec. 9. Section 182.13B, subsection 1, Code 2025, is amended 16 to read as follows: 17 1. If a majority of voters at a referendum conducted 18 pursuant to section 182.4 approve the establishment of an 19 Iowa sheep and wool promotion board and the imposition of 20 an assessment, the assessment shall be imposed on wool and 21 sheep at the following rates: twenty cents per head sold by a 22 producer to a first purchaser. 23 a. For wool, two cents imposed on each pound of wool sold 24 by a producer. 25 b. For sheep, ten cents imposed on each head of sheep sold 26 by a producer. 27 Sec. 10. Section 182.14, Code 2025, is amended to read as 28 follows: 29 182.14 Assessment. 30 1. An assessment provided in this chapter shall be imposed 31 on the a producer as follows: 32 a. If the a producer sells wool or sheep to the a first 33 purchaser within this state, the following shall apply: 34 (1) If the sale occurs at a concentration point, the 35 -5- LSB 1596YC (5) 91 da/ns 5/ 10
H.F. _____ assessment shall be imposed at the time of delivery. The 1 first purchaser shall deduct the assessment from the price 2 paid to the producer at the time of sale. The board may 3 establish a system that requires the first purchaser to deduct 4 the assessment and remit the deducted amount to the board by 5 electronic funds transfer. 6 (2) If the sale does not occur at a concentration point, the 7 producer shall deduct the assessment from the amount received 8 from the sale and shall forward the deducted amount deducted to 9 the board within thirty days following each calendar quarter. 10 However, the board may establish a system that requires the 11 first purchaser to deduct the assessment and remit the deducted 12 amount to the board by electronic funds transfer. 13 b. If the producer sells, ships, or otherwise disposes of 14 wool or sheep to any person outside this state, the producer 15 shall deduct the assessment from the amount received from the 16 sale and shall forward the amount deducted to the board. The 17 board may establish a system that requires the first purchaser 18 to deduct the assessment and remit the deducted amount to the 19 board by electronic funds transfer. 20 2. The assessment imposed by this section chapter shall 21 be remitted to the board not later than thirty days following 22 each calendar quarter during which the assessment amount was 23 deducted. 24 Sec. 11. Section 182.15, Code 2025, is amended to read as 25 follows: 26 182.15 Invoice required. 27 1. At the time of sale, the first purchaser shall sign 28 and deliver to the producer a separate invoices invoice for 29 each purchase. The invoices An invoice shall show all of the 30 following : 31 a. The name and address of the producer and the seller, if 32 different from the producer. 33 b. The name and address of the first purchaser. 34 c. The pounds of wool or head of number of sheep sold. 35 -6- LSB 1596YC (5) 91 da/ns 6/ 10
H.F. _____ d. The date of the purchase. 1 e. The rate of withholding the assessment and the total 2 amount of the assessment withheld collected . 3 2. Invoices An invoice shall be legibly written and shall 4 not be altered. 5 Sec. 12. Section 182.18, Code 2025, is amended to read as 6 follows: 7 182.18 Use of moneys. 8 1. Moneys collected controlled by the Iowa sheep promotion 9 board under this chapter are subject to audit performed by the 10 auditor of state and . 11 2. The moneys shall be used expended by the Iowa sheep and 12 wool promotion board first for the payment of collection and 13 refund expenses, second for payment of the costs and expenses 14 arising in connection with conducting referendums, third for 15 the purposes identified in section 182.11 , and fourth for the 16 cost of conducting audits for by the auditor of state. 17 3. Moneys of the board remaining If moneys remain after 18 a referendum is held at which a majority of the voters favor 19 termination of terminating the board and the assessment under 20 section 182.4, the board shall continue to be expended exist 21 and expend the moneys in accordance with this chapter until 22 the moneys are exhausted. The auditor of state may seek 23 reimbursement for the cost of the audit. 24 2. 4. The board shall not engage in any political activity, 25 and it shall be a condition of any allocation of funds moneys 26 under this chapter that any organization person receiving funds 27 moneys shall not expend the funds moneys on political activity 28 or on any attempt to influence legislation. 29 Sec. 13. TRANSITION MEMBERSHIP. Notwithstanding this 30 Act, the members of the Iowa sheep and wool promotion board 31 established pursuant to section 182.5, Code 2025, who were 32 serving on the board immediately prior to the effective date of 33 this Act shall continue to serve on the Iowa sheep promotion 34 board pursuant to section 182.5, as amended by this Act, until 35 -7- LSB 1596YC (5) 91 da/ns 7/ 10
H.F. _____ their terms expire as provided in section 182.3, as amended 1 by this Act. The Iowa sheep promotion board shall appoint a 2 producer qualified under this Act to fill an unexpired term if 3 a vacancy occurs as provided in section 182.10, as amended by 4 this Act. 5 Sec. 14. TRANSITION ASSESSMENT. 6 1. The assessment rate of twenty cents per head of sheep 7 established pursuant to section 182.13B, as amended by this 8 Act, shall be established and collected under chapter 182 9 without a referendum. 10 2. The assessment rate established pursuant to section 11 182.13B, as amended by this Act, shall take effect September 1, 12 2025, unless an earlier date is adopted by resolution of the 13 Iowa sheep promotion board. Until then, the assessment rate 14 imposed on sheep in effect immediately prior to the effective 15 date of this Act shall continue to be in effect. 16 3. This Act does not restrict a referendum to terminate 17 the Iowa sheep promotion board or the assessment as provided 18 in section 182.4. 19 Sec. 15. TRANSITION OPERATIONS. The Iowa sheep promotion 20 board is the successor organization of the Iowa sheep and wool 21 promotion board established in chapter 182. 22 1. The Iowa sheep promotion board shall change its name from 23 the Iowa sheep and wool promotion board to comply with this 24 Act in all official documents in effect and under the control 25 of the Iowa sheep promotion board. The Iowa sheep promotion 26 board shall make all name changes within a practical period 27 determined by the Iowa sheep promotion board but not later than 28 December 30, 2025. 29 2. The name of the Iowa sheep promotion board shall not 30 affect any of the following: 31 a. A rule, regulation, form, order, or directive 32 promulgated by the Iowa sheep and wool promotion board in 33 effect immediately prior to the effective date of this Act. 34 b. A legal or financial obligation incurred by the Iowa 35 -8- LSB 1596YC (5) 91 da/ns 8/ 10
H.F. _____ sheep and wool promotion board, or any legal or financial 1 obligation owed to the Iowa sheep and wool promotion board, 2 in effect immediately prior to the effective date of this Act 3 until it terminates or is renewed under its own terms. 4 c. Any account, or moneys in any account, controlled by the 5 Iowa sheep and wool promotion board immediately prior to the 6 effective date of this Act. The moneys under the control of 7 the Iowa sheep promotion board shall be expended as provided 8 in sections 182.12 and 182.16. 9 d. Any administrative hearing, cause of action, or statute 10 of limitation relating to the Iowa sheep and wool promotion 11 board in effect immediately prior to the effective date of this 12 Act. 13 3. Any replacement of signs, logos, stationery, insignia, 14 uniforms, and related items due to the effect of the change in 15 name shall be done as part of the normal replacement cycle for 16 such items. 17 EXPLANATION 18 The inclusion of this explanation does not constitute agreement with 19 the explanations substance by the members of the general assembly. 20 BACKGROUND. 1985 Iowa Acts, chapter 207 (codified in 21 Code chapter 182), authorized producers of sheep and wool to 22 conduct a referendum for purposes of establishing an Iowa 23 sheep and wool promotion board and collecting an assessment 24 (informally referred to as a checkoff) on the per-head sale 25 of sheep and the per-pound sale of wool (Code section 182.4). 26 The assessment represents a self-tax deducted from the sales 27 price of sheep and wool with a right of refund (Code section 28 182.17). The moneys are collected by the producers first 29 purchaser, if the sale is at a concentration point (e.g., a 30 stockyard or market). Otherwise, the moneys are collected by 31 the producer. In any case, the collected moneys are deposited 32 into an account in a financial institution under the boards 33 control. The board is required to use the collected moneys to 34 support efforts to promote markets for sheep and wool products 35 -9- LSB 1596YC (5) 91 da/ns 9/ 10
H.F. _____ and further related research and education efforts (Code 1 section 182.11). The assessment rate is 2 cents for each pound 2 of wool and 10 cents per head of sheep subject to an increased 3 per-head rate of 25 cents or higher by board action if approved 4 by referendum (Code section 182.13B). 5 BILLS PROVISIONS ELIMINATION OF WOOL. The bill changes 6 the boards name to the Iowa sheep promotion board. A producer 7 is limited to a person in the business of producing and selling 8 sheep. The per-pound wool assessment is eliminated and the 9 base per-head assessment is established at 20 cents subject to 10 current procedures that allow for an increase by referendum 11 (Code section 182.13B). The renamed board may establish a 12 system that provides for electronic funds transfer by a first 13 purchaser, at a concentration point, outside the concentration 14 point, or outside the state. Moneys from the assessment must 15 be used to support increasing markets, education, and research 16 involving sheep and sheep products which includes an item 17 derived from a live or slaughtered sheep, including but not 18 limited to bones, milk, manure, mutton or lamb, sheepskin, or 19 wool. 20 BILLS PROVISIONS TRANSITION PROVISIONS. The bill does 21 not affect the terms of members of the former Iowa sheep and 22 wool promotion board who will continue to serve as members of 23 the Iowa sheep promotion board until the expiration of the 24 members term. The per-head assessment rate of 20 cents is 25 implemented without a referendum. The assessment rate takes 26 effect on September 1, 2025, unless the board elects an earlier 27 effective date by resolution. Until then, the assessment rate 28 is the same as prior to the effective date of the bill. The 29 bill does not limit the power of producers to terminate the 30 board and assessment by referendum (Code section 182.4). 31 -10- LSB 1596YC (5) 91 da/ns 10/ 10