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PAG LIN 1 1 Amend House File 163 as follows: 1 2 #1. Page 1, lines 4 and 5, by striking the words 1 3 "authorized limited liability company;". 1 4 #2. Page 1, by inserting after line 7 the 1 5 following: 1 6 "Sec. . Section 9H.1, subsection 3A, Code 1995, 1 7 is amended by striking the subsection. 1 8 Sec. . Section 9H.1, subsection 8A, Code 1995, 1 9 is amended by striking the subsection. 1 10 Sec. . NEW SECTION. 9H.3A LIMITED LIABILITY 1 11 COMPANIES &endash; PROHIBITIONS. 1 12 A limited liability company shall not, either 1 13 directly or indirectly, hold or acquire or otherwise 1 14 obtain, lease, or have a legal or beneficial interest 1 15 in any agricultural land in this state. A limited 1 16 liability company shall not be a shareholder in a 1 17 corporation, a limited partner in a limited 1 18 partnership, or beneficiary of a trust which holds or 1 19 leases any agricultural land in this state. A limited 1 20 liability company violating the provisions of this 1 21 section shall be subject to the same penalty as 1 22 provided in section 9H.4. The courts of this state 1 23 may prevent and restrain violations of this section 1 24 through issuance of an injunction. The attorney 1 25 general or a county attorney shall institute suits on 1 26 behalf of the state to prevent or restrain violations 1 27 of this section. This section shall not apply to 1 28 agricultural land held or leased by a limited 1 29 liability company on the effective date of this Act, 1 30 as long as the limited liability company holding such 1 31 land on the effective date of this Act continues to 1 32 hold or lease such agricultural land in compliance 1 33 with this chapter as of the date when the limited 1 34 liability company either directly or indirectly first 1 35 held or acquired or otherwise obtained, leased, or 1 36 received a legal or beneficial interest in the 1 37 agricultural land. 1 38 Sec. . Section 9H.4, unnumbered paragraph 1, 1 39 Code 1995, is amended to read as follows: 1 40 A corporation, limited liability company,or trust, 1 41 other than a family farm corporation, authorized farm 1 42 corporation,family farm limited liability company,1 43authorized limited liability company,family trust, 1 44 authorized trust, revocable trust, or testamentary 1 45 trust shall not, either directly or indirectly, 1 46 acquire or otherwise obtain or lease any agricultural 1 47 land in this state. However, the restrictions 1 48 provided in this section shall not apply to the 1 49 following: 1 50 Sec. . Section 9H.4, subsection 2, paragraph c, 2 1 Code 1995, is amended to read as follows: 2 2 c. The agricultural land is used by a corporation 2 3or limited liability company, including any trade or 2 4 business which is under common control, as provided in 2 5 26 U.S.C. } 414 for the primary purpose of testing, 2 6 developing, or producing animals for sale or resale to 2 7 farmers as breeding stock. However, after July 1, 2 8 1989, to qualify under this paragraph, the following 2 9 conditions must be satisfied: 2 10 (1) The corporationor limited liability company2 11 must not hold the agricultural land other than as a 2 12 lessee. The term of the lease must be for not more 2 13 than twelve years. The corporationor limited2 14liability companyshall not renew a lease. The 2 15 corporation or limited liability company shall not 2 16 enter into a lease under this paragraph, if the 2 17 corporationor limited liability companyhas ever 2 18 entered into another lease under this paragraph "c", 2 19 whether or not the lease is in effect. However, this 2 20 subparagraph does not apply to a domestic corporation 2 21 organized under chapter 504 or 504A. 2 22 (2) A term or condition of sale, including resale, 2 23 of breeding stock must not relate to the direct or 2 24 indirect control by the corporationor limited2 25liability companyof the breeding stock or breeding 2 26 stock progeny subsequent to the sale. 2 27 (3) The number of acres of agricultural land held 2 28 by the corporationor limited liability companymust 2 29 not exceed six hundred forty acres. 2 30 (4) The corporationor limited liability company2 31 must deliver a copy of the lease to the secretary of 2 32 state. The secretary of state shall notify the lessee 2 33 of receipt of the copy of the lease. However, this 2 34 subparagraph does not apply to a domestic corporation 2 35 organized under chapter 504 or 504A. 2 36 Culls and test animals may be sold under this 2 37 paragraph "c". For a three-year period beginning on 2 38 the date that the corporationor limited liability2 39companyacquires an interest in the agricultural land, 2 40 the gross sales for any year shall not be greater than 2 41 five hundred thousand dollars. After the three-year 2 42 period ends, the gross sales for any year shall not be 2 43 greater than twenty-five percent of the gross sales 2 44 for that year of the breeding stock, or five hundred 2 45 thousand dollars, whichever is less. 2 46 Sec. . Section 9H.4, subsections 4, 5, and 8, 2 47 Code 1995, are amended to read as follows: 2 48 4. Agricultural land acquired by a corporationor2 49limited liability companyfor immediate or potential 2 50 use in nonfarming purposes. 3 1 5. Agricultural land acquired by a corporationor3 2limited liability companyby process of law in the 3 3 collection of debts, or pursuant to a contract for 3 4 deed executed prior to August 15, 1975, or by any 3 5 procedure for the enforcement of a lien or claim 3 6 thereon, whether created by mortgage or otherwise. 3 7 8. A corporation or its subsidiary organized under 3 8 chapter 490or a limited liability company organized3 9under chapter 490Aand to which section 312.8 is 3 10 applicable. 3 11 Sec. . Section 9H.4, subsection 11, unnumbered 3 12 paragraph 2, Code 1995, is amended to read as follows: 3 13 A corporation, limited liability company,or trust, 3 14 other than a family farm corporation, authorized farm 3 15 corporation,family farm limited liability company,3 16authorized limited liability company,family trust, 3 17 authorized trust, revocable trust, or testamentary 3 18 trust, violating this section shall be assessed a 3 19 civil penalty of not more than twenty-five thousand 3 20 dollars and shall divest itself of any land held in 3 21 violation of this section within one year after 3 22 judgment. The courts of this state may prevent and 3 23 restrain violations of this section through the 3 24 issuance of an injunction. The attorney general or a 3 25 county attorney shall institute suits on behalf of the 3 26 state to prevent and restrain violations of this 3 27 section. 3 28 Sec. . Section 9H.5, subsection 1, unnumbered 3 29 paragraph 1, Code 1995, is amended to read as follows: 3 30 An authorized farm corporation, authorized limited3 31liability company,or authorized trust shall not, on 3 32 or after July 1, 1987, and a limited partnership other 3 33 than a family farm limited partnership shall not, on 3 34 or after July 1, 1988, either directly or indirectly, 3 35 acquire or otherwise obtain or lease agricultural 3 36 land, if the total agricultural land either directly 3 37 or indirectly owned or leased by the authorized farm 3 38 corporation,authorized limited liability company,3 39 limited partnership, or authorized trust would then 3 40 exceed one thousand five hundred acres." 3 41 #3. Page 1, by striking line 27. 3 42 #4. By striking page 1, line 31 through page 2, 3 43 line 17 and inserting the following: 3 44 "Sec. . Section 9H.5, subsection 3, paragraph 3 45 a, Code 1995, is amended to read as follows: 3 46 a. An authorized farm corporation, authorized 3 47 trust,authorized limited liability company,or 3 48 limited partnership violating this section shall be 3 49 assessed a civil penalty of not more than twenty-five 3 50 thousand dollars and shall divest itself of any land 4 1 held in violation of this section within one year 4 2 after judgment. A civil penalty of not more than one 4 3 thousand dollars may be imposed on a person who 4 4becomesholds an interest in an authorized entity by 4 5 being a stockholder of an authorized farm corporation, 4 6 beneficiary of an authorized trust,member of an4 7authorized limited liability company,or limited 4 8 partner in a limited partnership in violation of this 4 9 section. The person shall divest the interest held by 4 10 the person in the corporation, trust,limited4 11liability company,or limited partnership to comply 4 12 with this section. The court may determine the method 4 13 of divesting an interest held by a person found to be 4 14 in violation of this chapter. A financial gain 4 15 realized by a person who disposes of an interest held 4 16 in violation of this chapter shall be forfeited to the 4 17 state's general fund. All court costs and fees shall 4 18 be paid by the person holding the interest in 4 19 violation of this chapter. 4 20 Sec. . Section 9H.5A, subsection 2, paragraph 4 21 d, Code 1995, is amended to read as follows: 4 22 d. A person who is a member, manager, or 4 23 authorized representative of a limited liability 4 24 company, other than a family farm limited liability 4 25 company allowed to hold or lease agricultural land 4 26 prior to the effective date of this Act, including an 4 27 authorized limited liability company, owning or 4 28 leasing agricultural land or engaged in farming in 4 29 this state. 4 30 Sec. . Section 161C.6, subsection 2, paragraphs 4 31 b and d, Code 1995, are amended to read as follows: 4 32 b. A person shall not be eligible to participate 4 33 in the program, unless the person is an individual 4 34 family farmer, an individual actively engaged in 4 35 farming as provided in section 9H.1, subsection 1, 4 36 paragraphs "a" through "c", or the person is a family 4 37 farm corporation, family farm limited partnership, or 4 38 a family trust,or a family farm limited liability4 39company,all as defined in section 9H.1. 4 40 d. The division shall maintain records regarding 4 41 each award of financial incentives under this section, 4 42 including the name of the person; the amount of the 4 43 award; the location of the livestock manure management 4 44 system established with financial incentive moneys; 4 45 and whether the person is a family farm corporation, 4 46 family farm limited partnership, or family trust, or a4 47family farm limited liability company. 4 48 Sec. . Section 175.2, subsection 6, Code 1995, 4 49 is amended to read as follows: 4 50 6. "Beginning farmer" means an individual, 5 1 partnership, or family farm corporation,or family5 2farm limited liability company,as defined in section 5 3 9H.1, with a low or moderate net worth that engages in 5 4 farming or wishes to engage in farming. 5 5 Sec. . Section 175.2, subsection 12, paragraph 5 6 d, Code 1995, is amended by striking the paragraph. 5 7 Sec. . Section 175.12, subsection 3, paragraphs 5 8 a, c, f, and g, Code 1995, are amended to read as 5 9 follows: 5 10 a. The beginning farmer is a resident of the 5 11 state. If the beginning farmer is a partnership, all 5 12 partners shall be residents of the state. If a 5 13 beginning farmer is a family farm corporation, all 5 14 shareholders shall be residents of the state.If the5 15beginning farmer is a family farm limited liability5 16company, all members shall be residents of the state.5 17 c. The beginning farmer has sufficient education, 5 18 training, or experience in the type of farming for 5 19 which the beginning farmer requests the mortgage or 5 20 secured loan. If the beginning farmer is a 5 21 partnership, all partners shall have sufficient 5 22 education, training, or experience in the type of 5 23 farming for which the beginning farmer requests the 5 24 mortgage or secured loan. If the beginning farmer is 5 25 a family farm corporation, all shareholders who are 5 26 not minors shall have sufficient education, training, 5 27 or experience in the type of farming for which the 5 28 beginning farmer requests the mortgage or secured 5 29 loan.If the beginning farmer is a family farm5 30limited liability company, all members who are not5 31minors shall have sufficient education, training, or5 32experience in the type of farming for which the5 33beginning farmer requests the mortgage or secured5 34loan.5 35 f. The beginning farmer shall materially and 5 36 substantially participate in farming. If the 5 37 beginning farmer is a partnership, or family farm 5 38 corporation,or family farm limited liability company,5 39 each partner,or shareholder, or membershall 5 40 materially and substantially participate in farming. 5 41 g. If the beginning farmer is an individual, the 5 42 agricultural land and agricultural improvements shall 5 43 only be used for farming by the individual, the 5 44 individual's spouse, or the individual's minor 5 45 children. If the beginning farmer is a partnership,5 46 or family farm corporation,or family farm limited5 47liability company,the agricultural land and 5 48 agricultural improvements shall only be used for 5 49 farming by any or all of the partners,or 5 50 shareholders,or members,including their spouses and 6 1 minor children." 6 2 #5. Title page, line 1, by inserting after the 6 3 word "for" the following: "certain entities and for". 6 4 #6. By renumbering as necessary. 6 5 6 6 6 7 6 8 WEIGEL of Chickasaw 6 9 HF 163.304 76 6 10 da/cf
Text: H03380 Text: H03382 Text: H03300 - H03399 Text: H Index Bills and Amendments: General Index Bill History: General Index
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