Allowing a corn producer to choose not to participate in the promotional order otherwise requiring the first purchaser to deduct a state assessment imposed on the per bushel sales price that is forwarded to the Iowa corn promotion board, and making penalties applicable

BACKGROUND. An excise tax or assessment is imposed on the first purchaser of a number of different types of commodities as a pass-through (commonly referred to as a “checkoff”), which may be administered under federal or state law or both. In the case of corn, the assessment is implemented and administered under state law (Code chapter 185C).1).25).13). The rate of the state assessment is imposed per marketing year, beginning September and ending August 31.27).26). BILL’S PROVISIONS. This bill allows a producer to apply to the board to be issued a certificate of nonparticipation (certificate). 20A). Alternatively, upon consent of the producer, the board may directly present the certificate to a first purchaser listed in the producer’s application. A certificate is valid only for the current marketing year as stated on the certificate. However, the board must reissue a certificate each subsequent marketing year, unless information in the application is no longer valid or the board revises its application. The first purchaser must remit an invoice to the producer showing that the state assessment was not deducted. If the state assessment was improperly deducted, a producer may apply to the board for a refund by forwarding a copy of the certificate and invoice. APPLICABLE PENALTY.31). A simple misdemeanor is punishable by confinement for no more than days and a fine of at least $105 but not more than $855.