SSB 1205

The indemnity board may defer a claim if there are insufficient assets in the fund to fully cover a loss.5). For grain dealers, the amount of the participation fee is based on purchased grain during the grain dealer’s last fiscal year, and for warehouse operators, the amount of the participation fee is based on warehouse storage capacity.014 of cent per bushel of either purchased or stored grain with a minimum required amount of $50.25 per bushel.6). The fund is managed on a state fiscal year basis (July to June 30). _____ may impose, reinstate, adjust, or waive the fees. However, if on the last date of the fund’s fiscal year, the moneys in the indemnity fund exceed a ceiling of $8 million, the two fees are waived.5). BACKGROUND —— CORN AND SOYBEAN CHECKOFFS. An excise tax or assessment is imposed on the first purchaser of a number of commodities as a pass-through (commonly referred to as a “checkoff”). The purpose of the assessment is to finance activities which involve improving market development which includes aspects related to the commodity’s production and market share, such as research and education. Depending upon the commodity, the assessment is implemented and administered under either a state or federal statute or both. An assessment takes effect, is continued, or is terminated on the basis of a majority vote of producers voting in a referendum conducted by the United States department of agriculture in the case of a federal assessment or DALS in the case of a state assessment. The checkoff moneys imposed due to the state or federal assessment are collected and expended pursuant to a promotional order under the direction of a governing body of elected producers (referred to as a board, committee, or council).13).21) without a right of refund.13).27). For each commodity subject to a state assessment, including soybeans and corn, the collected checkoff moneys are deposited into a separate state-controlled fund established in the state treasury (state fund) and transferred by the department of administrative services (DAS) to an account in a qualified financial institution eligible to hold public funds (Code chapter 12C) and established by the governing body of the commodity organization; in this case the Iowa soybean association board of directors or Iowa corn promotion board. BILL’S PROVISIONS.5).5). The bill replaces that funding source with checkoff moneys collected from state assessments imposed on soybeans and corn.1).26). The account under the control of the Iowa corn promotion board is named “the corn checkoff account”.28).34). The bill increases the limits of the fund to a ceiling of $20 million, and a floor of $10 million. On May 1, the indemnity board must determine to suspend or reinstate the state assessments.3B). In either case, DALS must notify DAS of the suspension or reinstatement.6).