Bill Text: IA SSB1205 | 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 and soybeans, increasing moneys deposited into the grain depositors and sellers indemnity fund, increasing indemnification amounts, and making appropriations.(See SF 556.)
Spectrum: Committee Bill
Status: (Introduced) 2023-03-23 - Committee report approving bill, renumbered as SF 556. [SSB1205 Detail]
Download: Iowa-2023-SSB1205-Introduced.html
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
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
and
soybeans,
5
increasing
moneys
deposited
into
the
grain
depositors
and
6
sellers
indemnity
fund,
increasing
indemnification
amounts,
7
and
making
appropriations.
8
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
9
TLSB
2529XC
(3)
90
da/ns
S.F.
_____
Section
1.
Section
185.1,
subsection
7,
Code
2023,
is
1
amended
to
read
as
follows:
2
7.
“Market
development”
means
to
engage
improve
the
economic
3
conditions
of
soybean
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
soybeans;
to
provide
providing
methods
and
means
,
including
7
but
not
limited
to
,
public
relations
and
other
promotion
8
techniques
for
the
maintenance
of
present
markets;
to
provide
9
ensuring
the
security
of
soybeans
stored
and
marketed
in
10
commercial
channels;
providing
for
the
development
of
new
or
11
larger
domestic
and
foreign
markets;
and
to
provide
providing
12
for
the
prevention,
modification,
or
elimination
of
trade
13
barriers
which
obstruct
the
free
flow
of
soybeans.
14
Sec.
2.
Section
185.13,
Code
2023,
is
amended
by
adding
the
15
following
new
subsection:
16
NEW
SUBSECTION
.
7.
Accept
gifts
or
federal
or
state
grants
17
received
by
the
board.
Any
moneys
accepted
by
the
board
18
shall
be
deposited
in
an
account
of
a
qualified
financial
19
institution.
20
Sec.
3.
Section
185.21,
subsection
2,
Code
2023,
is
amended
21
to
read
as
follows:
22
2.
The
state
assessment
shall
be
paid
deposited
into
the
23
soybean
promotion
marketing
fund
established
in
section
185.26
.
24
Sec.
4.
Section
185.26,
Code
2023,
is
amended
to
read
as
25
follows:
26
185.26
Administration
Deposit
of
moneys
collected
from
state
27
assessment
——
soybean
marketing
fund
——
transfers
.
28
1.
The
Moneys
from
the
state
assessment
collected
by
29
the
board
from
the
sale
of
soybeans
shall
be
deposited
in
a
30
special
fund
known
as
the
soybean
promotion
marketing
fund,
31
established
in
the
office
of
the
treasurer
of
state.
The
fund
32
may
also
contain
any
gifts
or
federal
or
state
grant
received
33
by
the
board.
Moneys
collected,
deposited
into
in
the
soybean
34
marketing
fund
,
and
transferred
to
the
board,
as
provided
in
35
-1-
LSB
2529XC
(3)
90
da/ns
1/
26
S.F.
_____
this
chapter
,
shall
be
subject
to
audit
by
the
auditor
of
1
state.
The
2
2.
a.
Except
as
provided
in
paragraph
“b”
,
the
department
3
of
administrative
services
shall
transfer
moneys
from
the
4
soybean
marketing
fund
to
the
board
for
deposit
into
in
an
5
account
known
as
the
soybean
checkoff
account
which
shall
be
6
established
by
the
board
in
a
qualified
financial
institution.
7
The
department
of
administrative
services
shall
transfer
the
8
moneys
into
to
the
soybean
checkoff
account
as
provided
in
a
9
resolution
adopted
by
the
board.
However,
the
department
is
10
only
required
to
transfer
moneys
once
during
each
day
and
only
11
during
hours
when
the
offices
of
the
state
are
open.
From
12
moneys
collected,
deposited,
and
transferred
to
the
soybean
13
checkoff
account
as
provided
in
this
section
,
the
board
shall
14
first
pay
the
costs
of
referendums,
elections,
and
other
15
expenses
incurred
in
the
administration
of
this
chapter
,
16
before
the
transferred
moneys
may
be
expended
to
carry
out
the
17
purposes
of
the
board
as
provided
in
section
185.11
.
The
board
18
shall
strictly
segregate
moneys
in
the
soybean
checkoff
account
19
from
all
other
moneys
of
the
board.
Moneys
in
the
soybean
20
checkoff
account
shall
be
expended
by
the
board
exclusively
21
for
use
as
provided
in
section
185.28,
including
for
carrying
22
out
the
purposes
of
the
board
as
provided
in
section
185.11
.
23
The
soybean
checkoff
account
shall
be
subject
to
audit
by
the
24
auditor
of
state.
25
b.
(1)
Except
as
otherwise
provided
in
subparagraph
26
(2),
twenty-five
percent
of
moneys
deposited
in
the
soybean
27
marketing
fund
shall
be
transferred
to
the
grain
depositors
28
and
sellers
indemnity
fund
created
in
section
203D.3
for
use
29
as
provided
in
section
185.28.
30
(2)
If
the
department
of
agriculture
and
land
stewardship
31
delivers
a
state
assessment
transfer
suspension
notice
to
the
32
department
of
administrative
services
as
provided
in
section
33
203D.3B,
moneys
that
would
otherwise
be
transferred
to
the
34
grain
depositors
and
sellers
indemnity
fund
as
described
in
35
-2-
LSB
2529XC
(3)
90
da/ns
2/
26
S.F.
_____
subparagraph
(1)
shall
instead
be
transferred
to
the
soybean
1
checkoff
account
for
use
by
the
board
in
the
same
manner
2
provided
in
paragraph
“a”
.
3
(3)
If
the
department
of
agriculture
and
land
stewardship
4
delivers
a
state
assessment
transfer
reinstatement
notice
5
to
the
department
of
administrative
services
as
provided
in
6
section
203D.3B,
moneys
that
would
otherwise
be
transferred
to
7
the
soybean
checkoff
account
under
subparagraph
(2)
shall
again
8
be
transferred
to
the
grain
depositors
and
sellers
indemnity
9
fund
in
the
same
manner
described
in
subparagraph
(1).
10
c.
The
department
of
administrative
services
is
only
11
required
to
transfer
moneys
under
this
subsection
to
the
12
soybean
checkoff
account
and
the
grain
depositors
and
sellers
13
indemnity
fund
once
during
each
day
and
only
during
hours
when
14
the
offices
of
the
state
are
open.
15
2.
3.
The
fiscal
year
of
the
association
shall
commence
on
16
October
1
and
end
on
September
30.
17
Sec.
5.
Section
185.28,
Code
2023,
is
amended
to
read
as
18
follows:
19
185.28
Use
of
moneys
——
appropriation
appropriations
.
20
1.
All
Except
as
provided
in
subsection
2,
moneys
collected,
21
deposited,
and
transferred
to
or
accepted
by
the
board
as
22
provided
in
this
chapter
,
are
appropriated
and
shall
be
used
23
for
the
administration
of
this
chapter
by
the
board
and
for
the
24
payment
of
claims
by
the
board
based
upon
obligations
incurred
25
in
the
performance
of
board
activities
and
functions
provided
26
in
this
chapter
.
27
2.
Moneys
transferred
from
the
soybean
marketing
fund
to
28
the
grain
depositors
and
sellers
indemnity
fund
as
provided
in
29
section
185.26
are
appropriated
for
use
by
the
department
of
30
agriculture
and
land
stewardship
and
the
Iowa
grain
indemnity
31
fund
board
as
provided
in
chapter
203D.
32
Sec.
6.
Section
185.30,
Code
2023,
is
amended
to
read
as
33
follows:
34
185.30
Bond.
35
-3-
LSB
2529XC
(3)
90
da/ns
3/
26
S.F.
_____
Every
A
person
occupying
a
position
of
trust
with
the
1
board
and
acting
under
any
provisions
a
provision
of
this
2
chapter
shall
provide
post
a
bond
in
an
amount
required
by
the
3
board.
The
premium
for
the
bond
shall
be
paid
out
of
moneys
4
transferred
from
in
the
soybean
promotion
fund
to
the
board
5
pursuant
to
checkoff
account
established
in
section
185.26
.
6
Sec.
7.
Section
185.33,
Code
2023,
is
amended
to
read
as
7
follows:
8
185.33
Report.
9
The
board
shall
each
year
prepare
and
submit
a
report
10
summarizing
the
activities
of
the
board
under
this
chapter
to
11
the
auditor
of
state
and
the
secretary
of
agriculture.
The
12
report
shall
show
all
income,
expenses,
and
other
relevant
13
information
concerning
fees
moneys
collected
by
the
board,
14
deposited
by
the
board
in
an
account,
transferred
to
the
board,
15
and
expended
by
the
board
under
the
provisions
of
this
chapter
.
16
Sec.
8.
Section
185.34,
subsection
2,
paragraph
b,
17
subparagraph
(2),
Code
2023,
is
amended
to
read
as
follows:
18
(2)
A
public
body
for
purposes
of
chapter
12C
.
Moneys
19
deposited
into
the
soybean
checkoff
account
as
established
in
20
section
185.26
shall
be
deemed
to
be
public
funds
under
chapter
21
12C
.
22
Sec.
9.
Section
185.34,
Code
2023,
is
amended
by
adding
the
23
following
new
subsection:
24
NEW
SUBSECTION
.
3.
Moneys
deposited
in
the
soybean
25
marketing
fund
and
transferred
to
the
soybean
checkoff
account
26
as
established
in
section
185.26
or
the
grain
depositors
and
27
sellers
indemnity
fund
as
provided
in
that
section
shall
be
28
deemed
to
be
public
funds
under
chapter
12C.
29
Sec.
10.
Section
185.35,
subsection
2,
Code
2023,
is
amended
30
to
read
as
follows:
31
2.
Subsection
1
does
not
apply
to
a
any
of
the
following:
32
a.
A
communication
or
action
taken
by
the
board
if
any
of
33
the
following
applies:
34
a.
(1)
The
board
may
communicate
or
take
action
directed
35
-4-
LSB
2529XC
(3)
90
da/ns
4/
26
S.F.
_____
to
an
appropriate
government
official
or
government
relating
1
to
the
marketing
of
soybeans
or
soybean
products
to
a
foreign
2
country.
3
b.
(2)
The
communication
or
action
relates
to
the
4
prevention,
modification,
or
elimination
of
trade
barriers.
5
b.
Moneys
transferred
to
the
grain
depositors
and
sellers
6
indemnity
fund
as
provided
in
section
185.26.
7
Sec.
11.
Section
185C.1,
subsection
9,
Code
2023,
is
amended
8
to
read
as
follows:
9
9.
“Market
development”
means
to
engage
improve
the
economic
10
conditions
of
corn
production,
storage,
and
marketing,
by
11
engaging
in
research
and
educational
programs
directed
toward
12
better
and
more
efficient
production,
storage,
and
utilization
13
of
corn;
to
provide
providing
methods
and
means
,
including
but
14
not
limited
to
,
public
relations
and
other
promotion
techniques
15
for
the
maintenance
of
present
markets;
to
provide
ensuring
16
the
security
of
corn
to
be
stored
and
marketed
in
commercial
17
channels;
providing
for
the
development
of
new
or
larger
18
domestic
and
foreign
markets;
and
to
provide
providing
for
the
19
prevention,
modification,
or
elimination
of
trade
barriers
20
which
obstruct
the
free
flow
of
corn.
21
Sec.
12.
Section
185C.11,
subsection
1,
Code
2023,
is
22
amended
by
adding
the
following
new
paragraphs:
23
NEW
PARAGRAPH
.
j.
Administer
the
corn
checkoff
account
as
24
provided
in
section
185C.26.
25
NEW
PARAGRAPH
.
k.
Accept
gifts,
rents,
royalties,
interest,
26
license
fees,
or
federal
or
state
grants.
Any
moneys
accepted
27
by
the
board
shall
be
deposited
in
an
account
of
a
qualified
28
financial
institution.
29
Sec.
13.
Section
185C.21,
subsection
1,
Code
2023,
is
30
amended
to
read
as
follows:
31
1.
The
board
shall
determine
and
set
the
state
assessment
32
rate.
State
assessments
collected
pursuant
to
the
promotional
33
order
shall
be
paid
into
the
corn
promotion
marketing
fund
34
established
in
section
185C.26
.
Except
as
provided
in
35
-5-
LSB
2529XC
(3)
90
da/ns
5/
26
S.F.
_____
subsection
2
,
a
state
assessment
shall
not
exceed
one-quarter
1
of
one
cent
per
bushel
upon
corn
marketed
in
this
state.
2
Sec.
14.
Section
185C.24,
subsections
1
and
2,
Code
2023,
3
are
amended
to
read
as
follows:
4
1.
The
board
shall
be
suspended
and
board
operations
and
5
terms
of
members
shall
cease
upon
either
any
of
the
following
6
events:
7
a.
The
state
assessment
is
terminated
pursuant
to
section
8
185C.25
.
9
b.
The
state
assessment
is
suspended
pursuant
to
section
10
185C.25A
.
11
2.
However,
notwithstanding
subsection
1
,
the
board
12
shall
continue
to
operate
until
proceeds
remaining
in
moneys
13
transferred
from
the
corn
promotion
marketing
fund
to
the
corn
14
checkoff
account
are
disbursed.
Disbursement
shall
be
made
15
as
provided
for
payment
the
transfer
of
moneys
under
section
16
185C.26
.
17
Sec.
15.
Section
185C.26,
Code
2023,
is
amended
to
read
as
18
follows:
19
185C.26
Deposit
of
moneys
——
corn
promotion
marketing
fund
20
——
transfers
.
21
1.
A
Moneys
from
the
state
assessment
collected
by
the
Iowa
22
corn
promotion
board
from
a
the
sale
of
corn
shall
be
deposited
23
in
the
office
of
the
treasurer
of
state
in
a
special
fund
known
24
as
the
corn
promotion
marketing
fund
established
in
the
office
25
of
the
treasurer
of
state
.
The
fund
may
include
any
gifts,
26
rents,
royalties,
interest,
license
fees,
or
a
federal
or
state
27
grant
received
by
the
board.
Moneys
collected,
deposited
28
in
the
corn
marketing
fund
,
and
transferred
to
the
board
as
29
provided
in
this
chapter
shall
be
subject
to
audit
by
the
30
auditor
of
state.
The
auditor
of
state
may
seek
reimbursement
31
for
the
cost
of
the
audit
from
moneys
deposited
in
the
corn
32
marketing
fund
as
provided
in
this
chapter
.
The
department
of
33
administrative
services
shall
transfer
moneys
from
the
fund
34
2.
a.
Except
as
provided
in
paragraph
“b”
,
the
department
35
-6-
LSB
2529XC
(3)
90
da/ns
6/
26
S.F.
_____
of
administrative
services
shall
transfer
moneys
deposited
1
in
the
corn
marketing
fund
to
the
board
for
deposit
into
in
2
an
account
known
as
the
corn
checkoff
account
which
shall
be
3
established
by
the
board
in
a
qualified
financial
institution.
4
The
department
of
administrative
services
shall
transfer
the
5
moneys
to
the
corn
checkoff
account
as
provided
in
a
resolution
6
adopted
by
the
board.
However,
the
department
is
only
required
7
to
transfer
moneys
once
during
each
day
and
only
during
hours
8
when
the
offices
of
the
state
are
open.
From
moneys
collected,
9
transferred
to
the
corn
checkoff
account,
the
board
shall
first
10
pay
all
the
direct
and
indirect
costs
incurred
by
the
secretary
11
and
the
costs
of
referendums,
elections,
and
other
expenses
12
incurred
in
the
administration
of
this
chapter
,
before
the
13
transferred
moneys
may
be
expended
to
carry
for
other
uses
as
14
provided
in
section
185C.28,
including
for
carrying
out
the
15
purposes
of
this
chapter
as
provided
in
section
185C.11
.
16
b.
(1)
Except
as
otherwise
provided
in
subparagraph
(2),
17
twenty-five
percent
of
moneys
deposited
in
the
corn
marketing
18
fund
shall
be
transferred
to
the
grain
depositors
and
sellers
19
indemnity
fund
created
in
section
203D.3
for
use
as
provided
20
in
section
185C.28.
21
(2)
If
the
department
of
agriculture
and
land
stewardship
22
delivers
a
state
assessment
transfer
suspension
notice
to
the
23
department
of
administrative
services
as
provided
in
section
24
203D.3B,
moneys
that
would
otherwise
be
transferred
to
the
25
grain
depositors
and
sellers
indemnity
fund
as
described
in
26
subparagraph
(1)
shall
instead
be
transferred
to
the
corn
27
checkoff
account
for
use
by
the
board
in
the
same
manner
28
provided
in
paragraph
“a”
.
29
(3)
If
the
department
of
agriculture
and
land
stewardship
30
delivers
a
state
assessment
transfer
reinstatement
notice
31
to
the
department
of
administrative
services
as
provided
in
32
section
203D.3B,
moneys
that
would
otherwise
be
transferred
to
33
the
corn
checkoff
account
under
subparagraph
(2)
shall
again
be
34
transferred
to
the
grain
depositors
and
sellers
indemnity
fund
35
-7-
LSB
2529XC
(3)
90
da/ns
7/
26
S.F.
_____
in
the
same
manner
described
in
subparagraph
(1).
1
c.
The
department
of
administrative
services
is
only
2
required
to
transfer
moneys
under
this
subsection
to
the
corn
3
checkoff
account
and
the
grain
depositors
and
sellers
indemnity
4
fund
once
during
each
day
and
only
during
hours
when
the
5
offices
of
the
state
are
open.
6
Sec.
16.
Section
185C.28,
Code
2023,
is
amended
to
read
as
7
follows:
8
185C.28
Use
of
moneys
——
appropriation
appropriations
.
9
1.
Moneys
deposited
in
the
corn
promotion
fund
and
10
transferred
to
Except
as
provided
in
subsection
2,
moneys
11
transferred
or
accepted
by
the
board
,
as
provided
in
section
12
185C.26
,
including
federal
moneys
to
the
extent
permitted
13
by
federal
law,
are
appropriated
and
shall
be
used
for
14
the
administration
of
this
chapter
and
for
the
payment
of
15
claims
based
upon
obligations
incurred
in
the
performance
of
16
activities
and
functions
provided
in
this
chapter
.
17
2.
Moneys
transferred
from
the
corn
marketing
fund
to
the
18
grain
depositors
and
sellers
indemnity
fund
as
provided
in
19
section
185C.26
are
appropriated
for
use
by
the
department
of
20
agriculture
and
land
stewardship
and
the
Iowa
grain
indemnity
21
fund
board
as
provided
in
chapter
203D.
22
Sec.
17.
Section
185C.29,
subsection
1,
Code
2023,
is
23
amended
to
read
as
follows:
24
1.
After
the
direct
and
indirect
costs
incurred
by
the
25
secretary
and
the
costs
of
elections,
referendums,
necessary
26
board
expenses,
and
administrative
costs
have
been
paid,
at
27
least
seventy-five
percent
of
the
remaining
moneys
from
a
state
28
assessment
deposited
in
the
corn
promotion
marketing
fund
shall
29
be
used
to
carry
out
the
purposes
of
the
board
as
provided
in
30
section
185C.11
.
31
Sec.
18.
Section
185C.30,
Code
2023,
is
amended
to
read
as
32
follows:
33
185C.30
Bond.
34
Every
person
occupying
a
position
of
trust
with
the
board
35
-8-
LSB
2529XC
(3)
90
da/ns
8/
26
S.F.
_____
and
acting
under
any
provisions
a
provision
of
this
chapter
1
shall
give
post
a
bond
in
such
amount
as
may
be
required
by
the
2
board
,
the
.
The
premium
for
which
the
bond
shall
be
paid
out
of
3
moneys
in
the
corn
promotion
fund
checkoff
account
established
4
in
section
185C.26
.
5
Sec.
19.
Section
185C.33,
Code
2023,
is
amended
to
read
as
6
follows:
7
185C.33
Report.
8
The
board
shall
each
year
prepare
and
submit
a
report
9
summarizing
the
activities
of
the
board
under
this
chapter
to
10
the
auditor
of
state
and
the
secretary
of
agriculture.
The
11
report
shall
show
all
income,
expenses,
and
other
relevant
12
information
concerning
fees
moneys
collected
by
the
board,
13
deposited
by
the
board
into
an
account,
transferred
to
the
14
board,
and
expended
by
the
board
under
the
provisions
of
this
15
chapter
.
16
Sec.
20.
Section
185C.34,
Code
2023,
is
amended
to
read
as
17
follows:
18
185C.34
Not
a
state
agency
——
public
funds
.
19
1.
The
Except
as
provided
in
subsection
2,
the
Iowa
corn
20
promotion
board
is
not
a
state
agency.
21
2.
The
board
is
deemed
to
be
a
public
body
for
purposes
of
22
chapter
12C.
23
3.
Moneys
deposited
in
the
corn
marketing
fund
and
24
transferred
to
the
corn
checkoff
account
as
established
in
25
section
185C.26
or
the
grain
depositors
and
sellers
indemnity
26
fund
as
provided
in
that
section
shall
be
deemed
to
be
public
27
funds
under
chapter
12C.
28
Sec.
21.
Section
203.1,
Code
2023,
is
amended
by
adding
the
29
following
new
subsection:
30
NEW
SUBSECTION
.
7A.
“Fund”
means
the
grain
depositors
and
31
sellers
indemnity
fund
created
in
section
203D.3.
32
Sec.
22.
Section
203.4,
Code
2023,
is
amended
to
read
as
33
follows:
34
203.4
Participation
in
indemnity
fund
required.
35
-9-
LSB
2529XC
(3)
90
da/ns
9/
26
S.F.
_____
A
grain
dealer
licensed
or
required
to
be
licensed
pursuant
1
to
section
203.3
shall
participate
in
and
comply
with
the
grain
2
depositors
and
sellers
indemnity
fund
as
provided
in
chapter
3
203D
.
4
Sec.
23.
Section
203.5,
subsections
1,
2,
3,
and
4,
Code
5
2023,
are
amended
to
read
as
follows:
6
1.
a.
Upon
the
filing
of
an
application
on
a
form
7
prescribed
by
the
department
and
compliance
with
the
terms
and
8
conditions
of
this
chapter
including
rules
of
the
department,
9
the
department
shall
issue
the
applicant
a
grain
dealer’s
10
license.
The
license
expires
at
the
end
of
the
third
calendar
11
month
following
the
close
of
the
grain
dealer’s
fiscal
year.
12
A
grain
dealer’s
license
may
be
renewed
annually
by
filing
a
13
renewal
application
on
a
form
prescribed
by
the
department.
An
14
application
for
renewal
must
be
received
by
the
department
on
15
or
before
the
end
of
the
third
calendar
month
following
the
16
close
of
the
grain
dealer’s
fiscal
year.
17
b.
The
department
shall
not
issue
approve
an
application
for
18
the
issuance
or
renewal
of
a
grain
dealer’s
license
unless
the
19
applicant
pays
to
the
department
all
of
the
following
fees:
20
(1)
For
the
issuance
of
a
license,
all
of
the
following:
a
21
license
fee
imposed
under
section
203.6.
22
(a)
A
license
fee
imposed
under
section
203.6
.
23
(b)
(2)
(a)
A
In
addition
to
subparagraph
(1),
for
the
24
issuance
of
a
license,
a
participation
fee
imposed
under
25
section
203D.3A
chapter
203D,
including
section
203D.3B
,
and
26
any
delinquent
participation
fee
imposed
under
a
previous
27
license
as
provided
in
that
section
chapter
.
28
(b)
This
subparagraph
is
repealed
July
1,
2025.
29
(2)
(3)
For
the
renewal
of
a
license,
all
of
the
following:
30
a
renewal
fee
imposed
under
section
203.6.
31
(a)
A
renewal
fee
imposed
under
section
203.6
.
32
(b)
(4)
(a)
A
In
addition
to
subparagraph
(3),
for
33
the
renewal
of
a
license,
a
participation
fee
imposed
under
34
section
203D.3A
chapter
203D,
including
section
203D.3B
,
and
35
-10-
LSB
2529XC
(3)
90
da/ns
10/
26
S.F.
_____
any
delinquent
participation
fee
as
provided
in
that
section
1
chapter
.
2
(b)
This
subparagraph
is
repealed
July
1,
2025.
3
(c)
(5)
(a)
A
In
addition
to
subparagraphs
(3)
and
(4),
4
for
the
renewal
of
a
license,
any
per-bushel
fee
as
provided
in
5
section
203D.3A
chapter
203D,
including
section
203D.3B
,
and
6
any
delinquent
per-bushel
fee
and
penalty
as
provided
in
that
7
section
chapter
.
8
(b)
This
subparagraph
is
repealed
July
1,
2025.
9
2.
a.
The
department
shall
notify
a
licensed
grain
dealer
10
of
any
delinquency
in
the
payment
of
a
participation
fee
or
11
per-bushel
fee
as
provided
in
section
203D.3A
chapter
203D,
12
including
section
203D.3B
.
The
department
shall
suspend
the
13
grain
dealer’s
license
thirty
days
after
delivering
the
notice
14
unless
the
licensed
grain
dealer
pays
the
delinquent
fee.
15
b.
This
subsection
is
repealed
July
1,
2025.
16
3.
a.
The
department
may
suspend
or
revoke
the
license
17
of
a
grain
dealer
who
discounts
the
purchase
price
paid
for
18
grain
nominally
for
the
participation
fee
or
per-bushel
fee
as
19
provided
in
section
203D.3A
chapter
203D,
including
section
20
203D.3B,
while
that
fee
is
not
in
effect.
21
b.
This
subsection
is
repealed
July
1,
2025.
22
4.
a.
A
grain
dealer
license
which
that
has
expired
may
23
be
reinstated
by
the
department
upon
receipt
the
department’s
24
approval
of
a
proper
renewal
application,
and
receipt
of
the
25
renewal
fee
and
a
reinstatement
fee
as
provided
in
section
26
203.6
,
and
any
delinquent
participation
fee
or
per-bushel
fee
27
and
penalty
as
provided
in
section
203D.3A
.
28
b.
(1)
In
addition
to
paragraph
“a”
,
a
grain
dealer
license
29
that
has
expired
may
be
reinstated
by
the
department
upon
30
receipt
of
any
delinquent
participation
fee
or
per-bushel
fee
31
and
penalty
as
provided
in
chapter
203D,
including
section
32
203D.3B.
33
(2)
This
paragraph
is
repealed
July
1,
2025.
34
c.
The
applicant
must
file
the
renewal
application
and
35
-11-
LSB
2529XC
(3)
90
da/ns
11/
26
S.F.
_____
pay
the
fees
and
penalty
described
in
this
subsection
to
the
1
department
within
thirty
days
from
the
date
of
expiration
of
2
the
grain
dealer
license.
3
Sec.
24.
Section
203C.1,
Code
2023,
is
amended
by
adding
the
4
following
new
subsection:
5
NEW
SUBSECTION
.
9A.
“Fund”
means
the
grain
depositors
and
6
sellers
indemnity
fund
created
in
section
203D.3.
7
Sec.
25.
Section
203C.12,
Code
2023,
is
amended
to
read
as
8
follows:
9
203C.12
Participation
in
fund
required.
10
A
person
licensed
to
operate
a
warehouse
under
this
chapter
11
shall
participate
in
and
comply
with
the
grain
depositors
and
12
sellers
indemnity
fund
as
provided
in
chapter
203D
.
13
Sec.
26.
Section
203C.37,
subsections
1,
2,
and
3,
Code
14
2023,
are
amended
to
read
as
follows:
15
1.
a.
Upon
the
filing
of
an
application
pursuant
to
section
16
203C.7
and
compliance
with
the
terms
and
conditions
of
this
17
chapter
including
rules
of
the
department,
the
department
18
shall
issue
the
applicant
a
warehouse
operator’s
license.
19
The
license
expires
at
the
end
of
the
third
calendar
month
20
following
the
close
of
the
warehouse
operator’s
fiscal
year.
21
A
warehouse
operator’s
license
may
be
renewed
annually
by
22
the
filing
of
a
renewal
application
on
a
form
prescribed
by
23
the
department
pursuant
to
section
203C.7
.
An
A
renewal
24
application
for
renewal
must
be
received
by
the
department
on
25
or
before
the
end
of
the
third
calendar
month
following
the
26
close
of
the
warehouse
operator’s
fiscal
year.
27
b.
The
department
shall
not
approve
an
application
for
the
28
issuance
or
renewal
of
a
warehouse
operator’s
license
unless
29
the
applicant
pays
to
the
department
all
of
the
following
fees:
30
(1)
For
the
issuance
of
a
license,
all
of
the
following:
a
31
license
fee
as
provided
in
section
203C.33.
32
(a)
A
license
fee
imposed
under
section
203C.33
.
33
(b)
A
participation
fee
imposed
under
section
203D.3A
,
34
and
any
delinquent
participation
fee
imposed
under
a
previous
35
-12-
LSB
2529XC
(3)
90
da/ns
12/
26
S.F.
_____
license
as
provided
in
that
section.
1
(2)
(a)
In
addition
to
subparagraph
(1),
for
the
issuance
2
of
a
license,
a
participation
fee
imposed
under
chapter
203D,
3
including
section
203D.3B,
and
any
delinquent
participation
fee
4
imposed
under
a
previous
license
as
provided
in
that
chapter.
5
(b)
This
subparagraph
is
repealed
July
1,
2025.
6
(2)
(3)
For
the
renewal
of
a
license,
all
of
the
following:
7
a
renewal
fee
as
provided
in
section
203C.33.
8
(a)
A
renewal
fee
imposed
under
section
203C.33
.
9
(b)
A
participation
fee
imposed
under
section
203D.3A
,
and
10
any
delinquent
participation
fee
as
provided
in
that
section.
11
(4)
(a)
In
addition
to
subparagraph
(3),
a
participation
12
fee
imposed
under
chapter
203D,
including
section
203D.3B,
and
13
any
delinquent
participation
fee
as
provided
in
that
chapter.
14
(b)
This
subparagraph
is
repealed
July
1,
2025.
15
2.
a.
The
failure
of
a
warehouse
operator
to
file
a
renewal
16
an
application
to
renew
a
warehouse
operator’s
license
and
to
17
pay
a
renewal
fee
as
provided
for
in
section
203C.33
and
any
18
delinquent
participation
fee
as
provided
in
section
203D.3A
,
19
on
or
before
the
end
of
the
third
calendar
month
following
the
20
close
of
the
licensee’s
fiscal
year
shall
cause
a
license
to
21
expire.
22
b.
(1)
In
addition
to
paragraph
“a”
,
the
failure
of
a
23
warehouse
operator
to
file
an
application
to
renew
a
warehouse
24
operator’s
license
and
to
pay
a
participation
fee
and
any
25
delinquent
participation
fee
as
provided
in
chapter
203D,
26
including
section
203D.3B,
on
or
before
the
end
of
the
third
27
calendar
month
following
the
close
of
the
licensee’s
fiscal
28
year
shall
cause
a
license
to
expire.
29
(2)
This
paragraph
is
repealed
July
1,
2025.
30
3.
a.
A
warehouse
license
that
has
expired
may
be
31
reinstated
by
the
department
upon
receipt
of
a
proper
renewal
32
application
,
to
renew
the
warehouse
operator’s
license
and
33
the
renewal
fee
and
the
reinstatement
fee
as
provided
for
34
in
section
203C.33
,
and
any
delinquent
participation
fee
as
35
-13-
LSB
2529XC
(3)
90
da/ns
13/
26
S.F.
_____
provided
in
section
203D.3A
.
The
applicant
must
file
the
1
renewal
application
and
pay
the
fees
to
the
department
within
2
thirty
days
from
the
date
that
the
warehouse
license
expires.
3
b.
(1)
In
addition
to
paragraph
“a”
,
a
warehouse
license
4
that
has
expired
may
be
reinstated
by
the
department
upon
5
receipt
of
any
delinquent
participation
fee
as
provided
in
6
chapter
203D,
including
section
203D.3B.
The
applicant
must
7
pay
the
fee
to
the
department
within
thirty
days
from
the
date
8
that
the
warehouse
license
expires.
9
(2)
This
paragraph
is
repealed
July
1,
2025.
10
Sec.
27.
Section
203D.2,
Code
2023,
is
amended
to
read
as
11
follows:
12
203D.2
Persons
participating
in
fund
——
compliance
.
13
1.
All
licensed
grain
dealers
,
including
persons
applying
14
to
be
issued
grain
dealer
licenses,
as
provided
in
chapter
203
15
and
licensed
warehouse
operators
,
including
persons
applying
to
16
be
issued
warehouse
operator
licenses
as
provided
in
chapter
17
203C,
shall
participate
in
the
fund.
18
2.
a.
Participation
in
the
fund
by
a
licensed
grain
dealer
19
includes
complying
with
this
chapter
and
chapter
203.
20
b.
Participation
in
the
fund
by
a
licensed
warehouse
21
operator
includes
complying
with
this
chapter
and
chapter
203C.
22
3.
This
section
does
not
require
participation
in
the
fund
23
to
include
payment
of
a
fee
for
deposit
into
the
fund.
24
Sec.
28.
NEW
SECTION
.
203D.2A
Persons
participating
in
fund
25
——
payment
into
fund.
26
1.
Participation
in
the
fund
by
licensed
grain
dealers,
27
including
persons
applying
to
be
issued
grain
dealer
28
licenses
under
chapter
203,
includes
payment
into
the
fund
of
29
participation
fees,
per-bushel
fees,
and
delinquency
penalties
30
as
provided
in
this
chapter,
including
section
203D.3B.
31
2.
Participation
in
the
fund
by
licensed
warehouse
32
operators,
including
persons
applying
to
be
issued
warehouse
33
operator
licenses
under
chapter
203D,
includes
payment
into
34
the
fund
of
participation
fees
as
provided
in
this
chapter,
35
-14-
LSB
2529XC
(3)
90
da/ns
14/
26
S.F.
_____
including
section
203D.3B.
1
3.
This
section
is
repealed
July
1,
2025.
2
Sec.
29.
Section
203D.3,
subsection
2,
Code
2023,
is
amended
3
to
read
as
follows:
4
2.
The
fund
consists
of
all
of
the
following:
5
a.
(1)
Participation
fees
paid
to
the
department
by
6
licensed
grain
dealers
and
persons
applying
to
be
issued
a
7
grain
dealer’s
license
dealer
licenses
as
provided
in
this
8
chapter,
including
section
203D.3A
203D.3B
.
9
(2)
This
paragraph
is
repealed
July
1,
2025.
10
b.
(1)
Participation
fees
paid
to
the
department
by
11
licensed
warehouse
operators
and
persons
applying
to
be
issued
12
a
warehouse
operator’s
license
operator
licenses
as
provided
in
13
this
chapter,
including
section
203D.3A
203D.3B
.
14
(2)
This
paragraph
is
repealed
July
1,
2025.
15
c.
(1)
Per-bushel
fees
paid
to
the
department
by
licensed
16
grain
dealers
as
provided
in
this
chapter,
including
section
17
203D.3A
203D.3B
.
18
(2)
This
paragraph
is
repealed
July
1,
2025.
19
d.
(1)
Delinquency
penalties
as
provided
in
this
chapter,
20
including
section
203D.3B
.
21
(2)
This
paragraph
is
repealed
July
1,
2025.
22
e.
The
amount
of
the
state
assessment
on
soybeans
collected
23
pursuant
to
chapter
185
and
transferred
to
the
fund
pursuant
to
24
section
185.26
and
this
chapter,
including
section
203D.3B.
25
f.
The
amount
of
the
state
assessment
on
corn
collected
26
pursuant
to
chapter
185C
and
transferred
to
the
fund
pursuant
27
to
section
185C.26
and
this
chapter,
including
section
203D.3B.
28
e.
g.
Amounts
collected
by
the
state
pursuant
to
legal
29
action
on
behalf
of
the
fund.
30
f.
h.
Interest,
earnings
on
investments,
property,
or
31
securities
acquired
through
the
use
of
moneys
in
the
fund.
32
Sec.
30.
Section
203D.3A,
Code
2023,
is
amended
by
adding
33
the
following
new
subsection:
34
NEW
SUBSECTION
.
3.
This
section
is
repealed
July
1,
2025.
35
-15-
LSB
2529XC
(3)
90
da/ns
15/
26
S.F.
_____
Sec.
31.
NEW
SECTION
.
203D.3B
Grain
depositors
and
sellers
1
indemnity
fund
——
administration
of
fees.
2
1.
The
board
shall
annually
review
the
debits
of
and
credits
3
to
the
grain
depositors
and
sellers
indemnity
fund.
4
2.
a.
Not
later
than
May
1
of
each
year,
the
board
shall
5
determine
whether
to
do
all
of
the
following:
6
(1)
Impose,
reinstate,
adjust,
or
waive
the
participation
7
fee
as
provided
in
this
chapter,
including
sections
203D.3A
and
8
203D.5.
9
(2)
Impose,
reinstate,
adjust,
or
waive
the
per-bushel
fee
10
as
provided
in
this
chapter,
including
sections
203D.3A
and
11
203D.5.
12
b.
Based
on
the
board’s
determination,
the
board
shall
13
impose
or
reinstate
the
participation
fee
and
per
bushel
fee,
14
adjust
those
fees
that
were
effective
on
the
previous
July
1,
15
or
waive
those
fees
that
were
in
effect
on
the
previous
July
1,
16
in
accordance
with
chapter
17A.
The
imposition,
reinstatement,
17
adjustment,
or
waiver
of
the
fees
shall
become
effective
as
18
follows:
19
(1)
For
the
participation
fee,
on
the
following
July
1.
20
However,
the
grain
dealer
or
warehouse
operator
shall
continue
21
to
pay
the
participation
fee
at
the
rate
in
effect
on
the
prior
22
July
1
until
the
grain
dealer
or
warehouse
operator
has
paid
23
the
amount
owing.
24
(2)
For
a
per-bushel
fee,
on
the
following
July
1.
25
c.
This
subsection
is
repealed
July
1,
2025.
26
3.
a.
Notwithstanding
subsection
2,
if
on
the
last
date
of
27
the
grain
depositors
and
sellers
indemnity
fund’s
fiscal
year
28
as
provided
in
section
203D.3,
moneys
in
the
fund
exceed
twenty
29
million
dollars,
less
any
encumbered
balances
or
pending
or
30
unsettled
claims,
all
of
the
following
apply:
31
(1)
The
participation
fee
shall
be
waived
and
shall
not
be
32
assessable
or
owing
for
the
following
fiscal
year
of
the
fund.
33
However,
the
grain
dealer
or
warehouse
operator
shall
continue
34
to
pay
any
owed
participation
fee
that
was
in
effect
prior
to
35
-16-
LSB
2529XC
(3)
90
da/ns
16/
26
S.F.
_____
July
1.
1
(2)
The
per-bushel
fee
shall
be
waived
and
shall
not
be
2
assessable
or
owing.
3
b.
Notwithstanding
subsection
2,
the
participation
fee
and
4
per-bushel
fee
shall
be
reinstated
at
any
time
if
the
moneys
5
in
the
fund,
less
any
unencumbered
balances
or
pending
or
6
unsettled
claims,
equal
ten
million
dollars
or
less.
7
c.
This
subsection
is
repealed
July
1,
2025.
8
4.
a.
Not
later
than
May
1
of
each
year,
the
board
shall
9
determine
whether
to
do
all
of
the
following:
10
(1)
Suspend
or
reinstate
the
state
assessment
on
soybeans
11
as
provided
in
section
185.26.
12
(2)
Suspend
or
reinstate
the
state
assessment
on
corn
as
13
provided
in
section
185C.26.
14
b.
The
fees
described
in
this
subsection
shall
be
suspended
15
or
reinstated
effective
the
following
July
1.
16
5.
a.
Notwithstanding
subsection
4,
if
on
the
last
date
of
17
the
grain
depositors
and
sellers
indemnity
fund’s
fiscal
year
18
as
provided
in
section
203D.3,
moneys
in
the
fund
exceed
twenty
19
million
dollars,
less
any
encumbered
balances
or
pending
or
20
unsettled
claims,
all
of
the
following
apply:
21
(1)
The
amount
of
the
state
assessment
imposed
on
soybeans
22
shall
be
suspended
as
provided
in
section
185.26.
23
(2)
The
amount
of
the
state
assessment
imposed
on
corn
shall
24
be
suspended
as
provided
in
section
185C.26.
25
b.
Notwithstanding
subsection
4,
if
at
any
time
moneys
in
26
the
fund
do
not
exceed
ten
million
dollars,
less
any
encumbered
27
balances
or
pending
or
unsettled
claims,
all
of
the
following
28
apply:
29
(1)
The
amount
of
the
state
assessment
on
soybeans
shall
be
30
reinstated
as
provided
in
section
185.26.
31
(2)
The
amount
of
the
state
assessment
on
corn
shall
be
32
reinstated
as
provided
in
section
185C.26.
33
6.
a.
If
the
amounts
of
the
state
assessments
imposed
on
34
soybeans
and
corn
are
suspended
as
provided
in
this
section,
35
-17-
LSB
2529XC
(3)
90
da/ns
17/
26
S.F.
_____
the
department
of
agriculture
and
land
stewardship
shall
1
deliver
a
state
assessment
transfer
suspension
notice
to
the
2
department
of
administrative
services
as
provided
in
sections
3
185.26
and
185C.26.
4
b.
If
the
amounts
of
the
state
assessments
imposed
on
5
soybeans
and
corn
are
reinstated
as
provided
in
this
section,
6
the
department
of
agriculture
and
land
stewardship
shall
7
deliver
a
state
assessment
transfer
reinstatement
notice
to
the
8
department
of
administrative
services
as
provided
in
sections
9
185.26
and
185C.26.
10
Sec.
32.
Section
203D.4,
subsections
2
and
3,
Code
2023,
are
11
amended
to
read
as
follows:
12
2.
a.
The
duties
of
the
board
include
the
review
and
13
determination
of
claims,
and
the
review
and
approval
of
14
administrative
costs
of
the
fund.
To
carry
out
these
15
duties,
the
board
has
the
power
to
adopt
rules
regarding
its
16
organization
and
procedures
for
determining
claims.
Further,
17
the
18
b.
(1)
The
board
shall
approve
rules
proposed
by
the
19
department
for
the
administration
of
the
participation
fees
and
20
per-bushel
fee
prior
to
their
adoption
by
the
department.
21
(2)
This
paragraph
is
repealed
July
1,
2025.
22
c.
The
board
may
provide
comment
and
advice
to
the
23
department
in
regard
to
the
department’s
administration
of
24
chapters
203
and
203C
where
the
department’s
policies
and
rules
25
may
affect
the
exposure
of
the
fund
to
liability.
However,
the
26
board
shall
not
become
actively
involved
in
a
determination
by
27
the
department
as
to
whether
disciplinary
action
is
to
be
taken
28
against
a
particular
licensee.
The
board
is
not
a
forum
for
29
review
or
appeal
in
regard
to
any
particular
action
taken
by
30
the
department
against
a
licensee.
31
3.
a.
The
department
through
the
grain
warehouse
bureau
32
shall
perform
the
administrative
functions
necessary
for
the
33
operation
of
the
board
and
the
fund.
Administrative
costs
34
approved
by
the
board
shall
be
paid
from
the
fund.
The
rules
of
35
-18-
LSB
2529XC
(3)
90
da/ns
18/
26
S.F.
_____
the
department
shall
contain
the
rules
of
the
board
adopted
for
1
its
organization
and
its
procedures.
2
b.
(1)
The
department
shall
adopt
rules
for
the
3
administration
of
the
participation
fee
and
per-bushel
fee
upon
4
the
board’s
approval
of
the
rules
proposed
by
the
department.
5
(2)
This
paragraph
is
repealed
July
1,
2025.
6
c.
The
secretary
of
agriculture,
as
president
of
the
board
7
as
well
as
head
of
the
department
of
agriculture
and
land
8
stewardship,
shall
administer
the
department
so
as
to
minimize
9
the
risk
of
loss
to
the
fund
while
protecting
interests
of
10
depositors
and
sellers
of
grain.
Policies
and
rules
for
the
11
administration
of
chapters
203
and
203C
which,
as
determined
12
by
the
secretary
of
agriculture,
may
affect
the
exposure
of
13
the
fund,
shall
be
presented
to
the
board
for
comment
prior
to
14
their
adoption
by
the
department.
15
d.
The
department
shall
make
reports
to
the
board
in
regard
16
to
licensee
investigations
which
may
result
in
disciplinary
17
action
against
a
licensee
and
exposure
of
the
fund.
The
18
reports
may
be
discussed
by
the
board
in
closed
session
19
pursuant
to
section
21.5
,
and
are
confidential.
In
making
20
the
report,
the
department
shall
make
available
to
the
board
21
records
of
licensees
which
are
otherwise
confidential
under
22
section
22.7
,
203.16
,
or
203C.24
.
However,
a
determination
23
to
take
disciplinary
action
against
a
particular
licensee
24
shall
be
made
exclusively
by
the
department.
A
report
to
the
25
board
is
not
a
prerequisite
to
disciplinary
action
against
a
26
licensee.
Review
of
any
action
against
a
licensee,
whether
or
27
not
relating
to
the
fund,
shall
be
made
exclusively
through
the
28
department.
29
Sec.
33.
Section
203D.5,
Code
2023,
is
amended
to
read
as
30
follows:
31
203D.5
Fees
——
imposition,
adjustment,
or
waiver
Rates
for
32
participation
and
per-bushel
fees
.
33
1.
The
board
shall
annually
review
the
debits
of
and
credits
34
to
the
grain
depositors
and
sellers
indemnity
fund
created
35
-19-
LSB
2529XC
(3)
90
da/ns
19/
26
S.F.
_____
in
section
203D.3
and
shall
determine
whether
to
impose
the
1
participation
fee
and
per-bushel
fee
as
provided
in
section
2
203D.3A
,
make
adjustments
to
the
fees
effective
on
the
previous
3
July
1,
or
waive
the
fees
as
necessary
to
comply
with
this
4
section
.
The
board
shall
make
the
determination
not
later
than
5
May
1
of
each
year.
The
board
shall
impose
the
fees
or
adjust
6
the
fees
effective
on
the
previous
July
1
in
accordance
with
7
chapter
17A
.
The
imposition
or
adjustment
of
the
fees
shall
8
become
effective
as
follows:
9
a.
For
the
participation
fee,
on
the
following
July
1.
10
However,
the
licensee
shall
continue
to
pay
the
participation
11
fee
at
the
rate
in
effect
on
the
prior
July
1,
until
the
12
licensee
has
paid
the
amount
owing.
13
b.
For
a
per-bushel
fee,
on
the
following
July
1.
14
2.
1.
a.
Except
as
provided
in
paragraph
“b”
,
the
The
15
board
shall
determine
the
rate
of
a
the
participation
fee
owed
16
by
a
licensee
grain
dealer
participating
in
the
fund.
The
rate
17
of
the
participation
fee
shall
be
calculated
as
follows
not
18
exceed
the
greater
of
the
following
:
19
(1)
(a)
For
a
licensed
grain
dealer
For
the
fund’s
fiscal
20
year
beginning
July
1,
2023
,
not
more
than
fourteen
thousandths
21
of
a
one
cent
per
bushel
assessed
on
all
the
grain
dealer’s
22
purchased
grain
.
23
(b)
For
the
fund’s
fiscal
year
beginning
July
1,
2023,
a
24
minimum
of
fifty
dollars.
25
(2)
(a)
For
the
fund’s
fiscal
year
beginning
July
1,
2024,
26
not
more
than
seven
thousandths
of
one
cent
per
bushel
assessed
27
on
all
the
grain
dealer’s
purchased
grain.
28
(b)
For
the
fund’s
fiscal
year
beginning
July
1,
2024,
a
29
minimum
of
twenty-five
dollars.
30
b.
The
board
shall
calculate
the
grain
dealer’s
purchased
31
grain
during
the
grain
dealer’s
last
fiscal
year
at
each
32
location
at
which
records
are
maintained
for
transactions
33
of
the
grain
dealer,
as
determined
according
to
information
34
submitted
by
the
grain
dealer
to
the
department
for
the
35
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issuance
or
renewal
of
a
license
as
provided
in
section
203.5
.
1
(2)
2.
a.
The
board
shall
determine
the
rate
of
the
2
participation
fee
owed
by
the
warehouse
operator
participating
3
in
the
fund.
The
rate
of
the
participation
fee
shall
not
4
exceed
the
greater
of
the
following:
5
(1)
(a)
For
a
licensed
warehouse
operator
For
the
fund’s
6
fiscal
year
beginning
July
1,
2023
,
not
more
than
fourteen
7
thousandths
of
a
one
cent
per
bushel
of
bulk
grain
storage
8
capacity
or
five
hundred
dollars,
whichever
is
less.
9
(b)
For
the
fund’s
fiscal
year
beginning
July
1,
2023,
a
10
minimum
of
fifty
dollars.
11
(2)
(a)
For
the
fund’s
fiscal
year
beginning
July
1,
2024,
12
not
more
than
seven
thousandths
of
one
cent
per
bushel
of
bulk
13
grain
storage
capacity
or
two
hundred
fifty
dollars,
whichever
14
is
less.
15
(b)
For
the
fund’s
fiscal
year
beginning
July
1,
2024,
a
16
minimum
of
twenty-five
dollars.
17
b.
The
board
shall
calculate
the
warehouse
operator’s
bulk
18
grain
storage
capacity
for
each
warehouse
licensed
pursuant
19
to
section
203C.8
or
five
hundred
dollars,
whichever
is
less
.
20
The
participation
fee
shall
be
determined
using
information
21
provided
to
the
department
by
the
warehouse
operator
applying
22
for
the
issuance
or
renewal
of
a
license
as
provided
in
23
sections
203C.7
and
203C.37
.
24
b.
A
licensee
shall
pay
a
participation
fee
of
at
least
25
fifty
dollars.
26
3.
a.
The
board
shall
determine
the
rate
of
the
per-bushel
27
fee
owed
by
a
grain
dealer.
The
rate
shall
not
exceed
28
one-quarter
the
following:
29
(1)
For
the
fund’s
fiscal
year
beginning
July
1,
2023,
not
30
more
than
one-quarter
cent
per
bushel
assessed
on
all
the
grain
31
dealer’s
purchased
grain.
32
(2)
For
the
fund’s
fiscal
year
beginning
July
1,
2024,
not
33
more
than
one-eighth
cent
per
bushel
assessed
on
all
the
grain
34
dealer’s
purchased
grain.
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b.
The
board
shall
calculate
the
grain
dealer’s
purchased
1
grain
in
the
same
manner
as
the
grain
dealer’s
participation
2
fee
as
provided
in
subsection
1.
3
4.
If
on
the
last
date
of
the
fund’s
fiscal
year
as
provided
4
in
section
203D.3
the
assets
of
the
fund
exceed
eight
million
5
dollars,
less
any
encumbered
balances
or
pending
or
unsettled
6
claims,
all
of
the
following
apply:
This
section
is
repealed
7
July
1,
2025.
8
a.
The
participation
fee
shall
be
waived
and
shall
not
9
be
assessable
or
owing
for
the
following
fiscal
year
of
the
10
fund.
However,
the
licensee
shall
continue
to
pay
any
owing
11
participation
fee
that
was
in
effect
on
the
prior
July
1.
12
b.
The
per-bushel
fee
shall
be
waived
and
shall
not
be
13
assessable
or
owing.
14
5.
The
board
shall
reinstate
the
fees
as
provided
in
this
15
section
if
the
assets
of
the
fund,
less
any
unencumbered
16
balances
or
pending
or
unsettled
claims,
are
three
million
17
dollars
or
less.
18
Sec.
34.
Section
203D.6,
subsection
8,
Code
2023,
is
amended
19
to
read
as
follows:
20
8.
Payment
of
claims.
21
a.
Upon
a
determination
that
the
claim
is
eligible
for
22
payment,
the
board
shall
provide
for
payment
of
ninety
percent
23
of
the
loss,
as
determined
under
subsection
5
,
but
not
more
24
than
three
six
hundred
thousand
dollars
per
claimant.
25
b.
If
at
any
time
the
board
determines
that
there
are
26
insufficient
funds
moneys
in
the
fund
to
make
payment
of
27
all
claims,
the
board
may
order
that
payment
be
deferred
28
on
specified
claims.
The
department,
upon
the
board’s
29
instruction,
shall
hold
those
claims
for
payment
until
the
30
board
determines
that
the
fund
again
contains
there
are
31
sufficient
assets
moneys
in
the
fund
to
pay
deferred
claims
.
32
EXPLANATION
33
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
34
the
explanation’s
substance
by
the
members
of
the
general
assembly.
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BACKGROUND
——
GRAIN
DEPOSITORS
AND
SELLERS
INDEMNITY
FUND.
1
This
bill
amends
provisions
regulating
grain
dealers
purchasing
2
grain
(Code
chapter
203),
and
grain
warehouse
operators
storing
3
grain
under
bailment
(Code
chapter
203C).
A
grain
dealer
4
or
warehouse
operator
must
do
business
in
this
state
under
5
a
license
issued
by
the
department
of
agriculture
and
land
6
stewardship
(DALS).
The
licensed
grain
dealer
and
licensed
7
warehouse
operator
(licensees)
pay
license
fees
for
deposit
8
in
the
general
fund
(Code
sections
203.6
and
203C.33).
A
9
person
selling
grain
to
a
licensed
grain
dealer
(seller)
or
10
depositing
grain
with
a
licensed
warehouse
operator
(depositor)
11
may
be
reimbursed
for
a
loss
incurred
by
the
failure
of
the
12
licensed
grain
dealer
or
licensed
warehouse
operator
to
honor
a
13
contractual
obligation
regarding
the
transaction
(Code
section
14
203D.6).
Upon
a
determination
that
the
claim
is
eligible
15
for
payment,
the
indemnity
board
provides
for
payment
of
90
16
percent
of
the
loss,
but
not
more
than
$300,000.
The
indemnity
17
board
may
defer
a
claim
if
there
are
insufficient
assets
in
18
the
fund
to
fully
cover
a
loss.
The
indemnity
fund
is
paid
19
from
several
sources,
including
a
participation
fee
paid
by
20
those
grain
dealers
and
warehouse
operators
(persons
applying
21
for
or
renewing
a
license)
and
a
per-bushel
fee
paid
only
by
22
grain
dealers
(Code
sections
203D.3A
and
203D.5).
For
grain
23
dealers,
the
amount
of
the
participation
fee
is
based
on
24
purchased
grain
during
the
grain
dealer’s
last
fiscal
year,
and
25
for
warehouse
operators,
the
amount
of
the
participation
fee
26
is
based
on
warehouse
storage
capacity.
The
maximum
amount
of
27
the
participation
fee
is
.014
of
1
cent
per
bushel
of
either
28
purchased
or
stored
grain
with
a
minimum
required
amount
of
29
$50.
The
per-bushel
fee
is
also
based
on
purchased
grain
with
30
a
maximum
of
$0.25
per
bushel.
The
moneys
available
in
the
31
indemnity
fund
are
calculated
by
subtracting
from
the
balance
32
any
unencumbered
obligations
or
pending
claims
(Code
section
33
203D.6).
The
fund
is
managed
on
a
state
fiscal
year
basis
34
(July
1
to
June
30).
By
May
1
of
each
year,
the
indemnity
board
35
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_____
may
impose,
reinstate,
adjust,
or
waive
the
fees.
However,
if
1
on
the
last
date
of
the
fund’s
fiscal
year,
the
moneys
in
the
2
indemnity
fund
exceed
a
ceiling
of
$8
million,
the
two
fees
are
3
waived.
If
at
any
time
moneys
in
the
indemnity
fund
are
at
a
4
floor
of
$3
million
or
less,
the
indemnity
fees
are
reinstated
5
(Code
section
203D.5).
6
BACKGROUND
——
CORN
AND
SOYBEAN
CHECKOFFS.
An
excise
tax
7
or
assessment
is
imposed
on
the
first
purchaser
of
a
number
8
of
commodities
as
a
pass-through
(commonly
referred
to
as
a
9
“checkoff”).
The
purpose
of
the
assessment
is
to
finance
10
activities
which
involve
improving
market
development
which
11
includes
aspects
related
to
the
commodity’s
production
and
12
market
share,
such
as
research
and
education.
Depending
upon
13
the
commodity,
the
assessment
is
implemented
and
administered
14
under
either
a
state
or
federal
statute
or
both.
An
assessment
15
takes
effect,
is
continued,
or
is
terminated
on
the
basis
of
16
a
majority
vote
of
producers
voting
in
a
referendum
conducted
17
by
the
United
States
department
of
agriculture
in
the
case
18
of
a
federal
assessment
or
DALS
in
the
case
of
a
state
19
assessment.
The
checkoff
moneys
imposed
due
to
the
state
or
20
federal
assessment
are
collected
and
expended
pursuant
to
a
21
promotional
order
under
the
direction
of
a
governing
body
22
of
elected
producers
(referred
to
as
a
board,
committee,
or
23
council).
For
soybeans,
the
federal
government
has
implemented
24
and
administers
a
federal
assessment
under
the
direction
of
the
25
united
soybean
board
(7
U.S.C.
ch.
92)
and
Iowa
has
implemented
26
and
administers
a
state
assessment
under
the
direction
of
the
27
Iowa
soybean
association
board
of
directors
(Code
sections
28
185.3,
185.11,
and
185.13).
With
the
collection
of
the
federal
29
assessment,
the
maximum
amount
of
the
state
assessment
for
30
soybeans
is
.25
of
1
percent
of
the
net
market
price
(Code
31
section
185.21)
without
a
right
of
refund.
For
corn,
the
32
state
has
implemented
and
administers
a
state
assessment
(Code
33
chapter
185C)
under
the
direction
of
the
Iowa
corn
promotion
34
board
(Code
sections
185C.8,
185C.11,
and
185C.13).
The
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maximum
amount
of
the
state
assessment
for
corn
is
3
cents
per
1
bushel
(Code
section
185C.21)
subject
to
a
right
of
refund
2
(Code
section
185C.27).
For
each
commodity
subject
to
a
state
3
assessment,
including
soybeans
and
corn,
the
collected
checkoff
4
moneys
are
deposited
into
a
separate
state-controlled
fund
5
established
in
the
state
treasury
(state
fund)
and
transferred
6
by
the
department
of
administrative
services
(DAS)
to
an
7
account
in
a
qualified
financial
institution
eligible
to
8
hold
public
funds
(Code
chapter
12C)
and
established
by
the
9
governing
body
of
the
commodity
organization;
in
this
case
10
the
Iowa
soybean
association
board
of
directors
or
Iowa
corn
11
promotion
board.
12
BILL’S
PROVISIONS.
The
bill
phases
out
the
indemnity
fees
13
paid
to
DALS
by
licensed
grain
dealers
and
warehouse
operators
14
used
to
support
the
indemnity
fund
(Code
sections
203D.3A
15
and
203D.5).
For
the
fiscal
year
of
the
fund
beginning
July
16
1,
2023,
the
amount
of
the
indemnity
fees
remains
the
same;
17
for
the
subsequent
fiscal
year
of
the
fund,
the
two
fees
are
18
reduced
to
50
percent
of
the
prior
fiscal
year’s
amounts;
19
and
for
subsequent
fiscal
years,
the
two
fees
are
eliminated
20
together
with
the
repeal
of
statutory
language
authorizing
21
them
(Code
sections
203D.3A
and
203D.5).
The
bill
replaces
22
that
funding
source
with
checkoff
moneys
collected
from
state
23
assessments
imposed
on
soybeans
and
corn.
The
bill
provides
24
that
market
development
for
both
soybeans
and
corn
expressly
25
includes
the
production,
storage,
and
marketing
of
those
26
commodities
in
commercial
channels
(amended
Code
sections
27
185.1
and
185C.1).
The
names
of
the
state-controlled
funds
28
are
changed,
from
the
soybean
promotion
fund
to
the
soybean
29
marketing
fund
and
from
the
corn
promotion
fund
to
the
corn
30
marketing
fund
(amended
Code
sections
185.26
and
185C.26).
The
31
account
under
the
control
of
the
Iowa
corn
promotion
board
is
32
named
“the
corn
checkoff
account”.
Under
the
bill,
25
percent
33
of
moneys
in
each
fund
is
transferred
to
the
indemnity
fund
and
34
appropriated
for
use
by
DALS
and
the
indemnity
board
to
support
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_____
claims
for
losses
by
depositors
and
sellers
(for
soybeans,
1
amended
Code
sections
185.26
and
185.28,
and
for
corn,
amended
2
Code
sections
185C.26
and
185C.28).
Moneys
deposited
into
the
3
soybean
marketing
fund
or
corn
marketing
fund
and
transferred
4
to
the
soybean
checkoff
account,
the
corn
checkoff
account,
5
or
the
indemnity
fund
are
public
funds
(amended
Code
sections
6
185.34
and
185C.34).
The
bill
increases
the
limits
of
the
fund
7
to
a
ceiling
of
$20
million,
and
a
floor
of
$10
million.
On
May
8
1,
the
indemnity
board
must
determine
to
suspend
or
reinstate
9
the
state
assessments.
However,
if
on
the
last
date
of
the
10
indemnity
fund’s
fiscal
year,
assets
in
the
fund
reach
the
11
$20
million
ceiling,
the
state
assessments
are
suspended
and
12
if
at
any
time
those
moneys
reach
the
$10
million
floor,
the
13
state
assessments
are
reinstated
(new
Code
section
203D.3B).
14
In
either
case,
DALS
must
notify
DAS
of
the
suspension
or
15
reinstatement.
Finally,
the
indemnity
fund’s
payout
limit
for
16
a
claim
is
increased
to
$600,000
(Code
section
203D.6).
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