Bill > HF800

Introduced Session

BACKGROUND. Iowa Acts, chapter 207 (codified in Code chapter 182), authorized producers of sheep and wool to conduct a referendum for purposes of establishing an Iowa sheep and wool promotion board and collecting an assessment (informally referred to as a checkoff) on the per-head sale of sheep and the per-pound sale of wool (Code section 182.4). The assessment represents a self-tax deducted from the sales price of sheep and wool with a right of refund (Code section 182.17). The moneys are collected by the producer’s first purchaser, if the sale is at a concentration point (e.g., a stockyard or market). Otherwise, the moneys are collected by the producer. In any case, the collected moneys are deposited into an account in a financial institution under the board’s control. The board is required to use the collected moneys to support efforts to promote markets for sheep and wool products and further related research and education efforts (Code section 182.11). The assessment rate is 2 cents for each pound of wool and 10 cents per head of sheep subject to an increased per-head rate of 25 cents or higher by board action if approved by referendum (Code section 182.13B). BILL’S PROVISIONS —— ELIMINATION OF WOOL. The bill changes the board’s name to the Iowa sheep promotion board. A producer is limited to a person in the business of producing and selling sheep. The per-pound wool assessment is eliminated and the base per-head assessment is established at 20 cents subject to current procedures that allow for an increase by referendum (Code section 182.13B). The renamed board may establish a system that provides for electronic funds transfer by a first purchaser, at a concentration point, outside the concentration point, or outside the state. Moneys from the assessment must be used to support increasing markets, education, and research involving sheep and sheep products which includes an item derived from a live or slaughtered sheep, including but not limited to bones, milk, manure, mutton or lamb, sheepskin, or wool. BILL’S PROVISIONS —— TRANSITION PROVISIONS. The bill does not affect the terms of members of the former Iowa sheep and wool promotion board who will continue to serve as members of the Iowa sheep promotion board until the expiration of the member’s term. The per-head assessment rate of 20 cents is implemented without a referendum. The assessment rate takes effect on September 1, 2025, unless the board elects an earlier effective date by resolution. Until then, the assessment rate is the same as prior to the effective date of the bill. The bill does not limit the power of producers to terminate the board and assessment by referendum (Code section 182.4).

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Other Sponsors (1)

Subcommittee: Sexton, Jones and Judge. H.J. 720. (on 03/18/2025)

Official Document