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Text: HSB00278                          Text: HSB00280
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House Study Bill 279

Conference Committee Text

PAG LIN
  1  1    Section 1.  Section 9H.1, subsections 3, 3A, and 4, Code
  1  2 1995, are amended to read as follows:
  1  3    3.  "Authorized farm corporation" means a corporation other
  1  4 than a family farm corporation founded for the purpose of
  1  5 farming and the ownership of agricultural land in which:
  1  6    a.  The stockholders do not exceed twenty-five in number;
  1  7 and
  1  8    b.  The, if the stockholders are all natural persons, or
  1  9 persons acting in a fiduciary capacity for the benefit of
  1 10 natural persons or nonprofit corporations, or family farm
  1 11 entities, and either of the following applies:
  1 12    a.  The stockholders do not exceed twenty-five in number.
  1 13    b.  The stockholders holding more than fifty percent of the
  1 14 equity investment in the corporation are farmers who reside in
  1 15 this state.
  1 16    3A.  "Authorized limited liability company" means a limited
  1 17 liability company other than a family farm limited liability
  1 18 company founded for the purpose of farming and the ownership
  1 19 of agricultural land in which all of the following apply:
  1 20    a.  The members do not exceed twenty-five in number.
  1 21    b.  The, if the members are all natural persons, or persons
  1 22 acting in a fiduciary capacity for the benefit of natural
  1 23 persons or nonprofit corporations, or family farm entities,
  1 24 and either of the following applies:
  1 25    a.  The members do not exceed twenty-five in number.
  1 26    b.  The members holding more than fifty percent of the
  1 27 equity investment in the corporation are farmers who reside in
  1 28 this state.
  1 29    4.  "Authorized trust" means a trust other than a family
  1 30 trust in which:
  1 31    a.  The beneficiaries do not exceed twenty-five in number;
  1 32 and
  1 33    b.  The, if the beneficiaries are all natural persons, who
  1 34 are not acting as a trustee or in a similar capacity for a
  1 35 trust as defined in subsection 22 of this section, or persons
  2  1 acting in a fiduciary capacity, or nonprofit corporations; and
  2  2    c.  Its, or family farm entities, where the income of the
  2  3 trust is not exempt from taxation under the laws of either the
  2  4 United States or the state of Iowa; and either of the
  2  5 following applies:
  2  6    a.  The beneficiaries do not exceed twenty-five in number.
  2  7    b.  The beneficiaries holding more than fifty percent of
  2  8 the equity interest in the corpus of the trust are farmers who
  2  9 reside in this state or are family farm corporations
  2 10 controlled by persons who reside in this state.
  2 11    Sec. 2.  Section 9H.1, Code 1995, is amended by adding the
  2 12 following new subsections:
  2 13    NEW SUBSECTION.  8B.  "Family farm entity" means a family
  2 14 farm corporation, family farm limited liability company,
  2 15 family farm partnership, or family trust.
  2 16    NEW SUBSECTION.  10A.  "Farmer" means a person who
  2 17 regularly participates in physical labor or the day-to-day
  2 18 management of a farming operation and who files a schedule F
  2 19 as part of the person's annual form 1040 filing with the
  2 20 United States internal revenue service.  
  2 21                           EXPLANATION
  2 22    Chapter 9H currently restricts persons eligible to hold
  2 23 agricultural land in this state.  Authorized farm
  2 24 corporations, authorized limited liability companies, and
  2 25 authorized trusts may hold up to 1,500 acres of agricultural
  2 26 land.  An authorized entity must be founded for purposes of
  2 27 farming and the ownership of agricultural land.  In addition,
  2 28 the stockholders, members, or beneficiaries must not exceed 25
  2 29 in number and all must be natural persons or persons acting in
  2 30 a fiduciary capacity for the natural persons or nonprofit
  2 31 corporations.
  2 32    This bill provides that an authorized entity may also be an
  2 33 entity in which 50 percent of the equity investment is held by
  2 34 stockholders, members, or beneficiaries, who are farmers who
  2 35 reside in the state.
  3  1    The bill also provides that a stockholder, member, or
  3  2 beneficiary may be a family farm corporation, family farm
  3  3 limited liability company, family farm limited partnership, or
  3  4 a family farm trust.  
  3  5 LSB 2575HC 76
  3  6 da/jj/8
     
Text: HSB00278                          Text: HSB00280
Text: HSB00200 - HSB00299               Text: HSB Index
Bills and Amendments: General Index     Bill History: General Index
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