Text: H08994                            Text: H08996
Text: H08900 - H08999                   Text: H Index
Bills and Amendments: General Index     Bill History: General Index



House Amendment 8995

Amendment Text

PAG LIN
  1  1    Amend House File 2335, as amended, passed, and
  1  2 reprinted by the House, as follows:
  1  3    #1.  Page 1, by striking lines 7 and 8 and
  1  4 inserting the following:
  1  5    "___.  "Actively engaged in farming" means that a
  1  6 natural person, including a shareholder or an officer,
  1  7 director, or employee of a corporation, or a member or
  1  8 manager of a limited liability company, does any of
  1  9 the following:
  1 10    a.  Inspects the production activities periodically
  1 11 and furnishes at least half of the value of the tools
  1 12 used for crop or livestock production and pays at
  1 13 least half the direct cost of crop or livestock
  1 14 production.
  1 15    b.  Regularly and frequently makes or takes an
  1 16 important part in making management decisions
  1 17 substantially contributing to or affecting the success
  1 18 of the farm operation.
  1 19    c.  Performs physical work which significantly
  1 20 contributes to crop or livestock production."
  1 21    #2.  Page 1, by inserting after line 14 the
  1 22 following:
  1 23    "___.  "Commodity share landlord" means a natural
  1 24 person or a general partnership as provided in chapter
  1 25 486 in which all partners are natural persons, who
  1 26 owns at least one hundred fifty acres of agricultural
  1 27 land, if the owner receives rent on a commodity share
  1 28 basis, which may be either a share of the crops or
  1 29 livestock produced on the land."
  1 30    #3.  Page 1, by striking lines 27 through 29 and
  1 31 inserting the following:
  1 32    "___.  "Farmers cooperative association" means a
  1 33 cooperative association organized under chapter 490 or
  1 34 499, if all of the following conditions are satisfied:
  1 35    a.  All of the following apply:
  1 36    (1)  Qualified farmers must hold at least a fifty-
  1 37 one percent equity interest in the cooperative
  1 38 association, including fifty-one percent of each class
  1 39 of members' equity.
  1 40    (2)  The following persons must hold at least a
  1 41 seventy percent equity interest in the cooperative
  1 42 association, including seventy percent of each class
  1 43 of members' equity:
  1 44    (a)  A qualified farmer.
  1 45    (b)  A family farm entity.
  1 46    (c)  A commodity share landlord.
  1 47    b.  As used in this subsection, "members' equity"
  1 48 includes but is not limited to issued shares,
  1 49 including common stock or preferred stock, regardless
  1 50 of a right to receive dividends or earning
  2  1 distributions.  However, "members' equity" does not
  2  2 include nonvoting common stock or nonvoting membership
  2  3 interests.  A security such as a warrant or option
  2  4 that may be converted to voting stock shall be
  2  5 considered as issued shares.
  2  6    c.  For purposes of this subsection, a person who
  2  7 was a qualified person within the last ten years shall
  2  8 be treated as a qualified person."
  2  9    #4.  By striking page 1, line 31, through page 2,
  2 10 line 1, and inserting the following:  "limited
  2 11 liability company organized under chapter 490A, if
  2 12 cooperative associations hold one hundred percent of
  2 13 all membership interests in the limited liability
  2 14 company.  Farmers cooperative associations must hold
  2 15 at least seventy percent of all membership interests
  2 16 in the limited liability company.  If more than one
  2 17 type of membership interest is established, including
  2 18 any series as provided in section 490A.305 or any
  2 19 class or group as provided in section 490A.307,
  2 20 farmers cooperative associations must hold at least
  2 21 seventy percent of all membership interests of that
  2 22 type."
  2 23    #5.  Page 2, by inserting after line 6 the
  2 24 following:
  2 25    "__.  "Intra-company loan agreement" means an
  2 26 agreement involving a loan, if the parties to the
  2 27 agreement are members of the same farmers cooperative
  2 28 limited liability company, and according to the terms
  2 29 of the loan a member which is a regional cooperative
  2 30 association directly or indirectly loans money to a
  2 31 member which is a farmers cooperative association, on
  2 32 condition that the money, including any interest, must
  2 33 be repaid by the member which is a farmers cooperative
  2 34 association to the regional cooperative association or
  2 35 another person.  A loan agreement does not include an
  2 36 operating loan agreement, in which all of the
  2 37 following apply:
  2 38    a.  The money is required to be repaid within
  2 39 ninety days from the date that the farmers cooperative
  2 40 association receives the money, and the money is
  2 41 actually repaid by that date.
  2 42    b.  The money is used to pay for reasonable and
  2 43 ordinary expenses of the farmers cooperative
  2 44 association in conducting its affairs."
  2 45    #6.  Page 2, by striking lines 14 through 17 and
  2 46 inserting the following:
  2 47    "a.  All of the following apply:
  2 48    (1)  Qualified farmers must hold at least fifty-one
  2 49 percent of all issued shares of the corporation.  If
  2 50 more than one class of shares is authorized, qualified
  3  1 farmers must hold at least fifty-one percent of all
  3  2 issued shares in each class.
  3  3    (2)  Qualified persons must hold at least seventy
  3  4 percent of all issued shares of the corporation.  If
  3  5 more than one class of shares is authorized, qualified
  3  6 persons must hold at least seventy percent of all
  3  7 issued shares in each class.
  3  8    b.  As used in paragraph "a", "issued shares"
  3  9 includes but is not limited to common stock or
  3 10 preferred stock, or each class of common stock or
  3 11 preferred stock, regardless of voting rights or a
  3 12 right to receive dividends or earning distributions.
  3 13 A security such as a warrant or option that may be
  3 14 converted to stock shall be considered as issued
  3 15 shares."
  3 16    #7.  Page 2, by striking lines 24 through 28 and
  3 17 inserting the following:
  3 18    "a.  Qualified farmers must hold at least fifty-one
  3 19 percent of all membership interests in the limited
  3 20 liability company.  If more than one type of
  3 21 membership interest is established, including any
  3 22 series as provided in section 490A.305 or any class or
  3 23 group as provided in section 490A.307, qualified
  3 24 farmers must hold at least fifty-one percent of all
  3 25 membership interests of that type.
  3 26    b.  Qualified persons must hold at least seventy
  3 27 percent of all membership interests in the limited
  3 28 liability company.  If more than one type of
  3 29 membership interest is established, including any
  3 30 series as provided in section 490A.305 or any class or
  3 31 group as provided in section 490A.307, qualified
  3 32 persons must hold at least seventy percent of all
  3 33 membership interests of that type.
  3 34    ___.  "Operation of law" means a transfer by
  3 35 inheritance, devise, or bequest, court order,
  3 36 dissolution decree, order in bankruptcy, insolvency,
  3 37 replevin, foreclosure, execution sale, the execution
  3 38 of a judgment, the foreclosure of a real estate
  3 39 mortgage, the forfeiture of a real estate contract, or
  3 40 a transfer resulting from a decree for specific
  3 41 performance."
  3 42    #8.  Page 2, line 29, by striking the word "person"
  3 43 and inserting the following:  "farmer".
  3 44    #9.  By striking page 2, line 34, through page 3,
  3 45 line 5, and inserting the following:
  3 46    "___.  A farm estate.
  3 47    ___.  "Qualified commodity share landlord" means a
  3 48 commodity share landlord, if the owner of the
  3 49 agricultural land was actively engaged in farming the
  3 50 land or a family member of the owner is or was
  4  1 actively engaged in farming the land, if the family
  4  2 member is related to the owner as a spouse, parent,
  4  3 grandparent, lineal ascendant of a grandparent or
  4  4 spouse, or other lineal descendant of a grandparent or
  4  5 spouse.
  4  6    ___.  "Qualified person" means a person who is any
  4  7 of the following:
  4  8    a.  A qualified farmer.
  4  9    b.  A family farm entity.
  4 10    c.  A qualified commodity share landlord."
  4 11    #10.  Page 3, by inserting before line 6 the
  4 12 following:
  4 13    "___.  "Regional cooperative association" means a
  4 14 cooperative association other than a farmers
  4 15 cooperative association."
  4 16    #11.  Page 3, lines 27 and 28, by striking the
  4 17 words "one thousand five hundred" and inserting the
  4 18 following:  "six hundred forty".
  4 19    #12.  Page 3, lines 34 and 35, by striking the
  4 20 words  "a ten percent or greater" and inserting the
  4 21 following:  "an".
  4 22    #13.  Page 4, line 13, by striking the words "one
  4 23 thousand five hundred" and inserting the following:
  4 24 "six hundred forty".
  4 25    #14.  Page 4, by striking lines 20 through 22 and
  4 26 inserting the following:  "networking farmers
  4 27 corporation by operation of law, the corporation may
  4 28 disregard the transfer for".
  4 29    #15.  Page 5, by inserting after line 4 the
  4 30 following:
  4 31    "___.  A qualified commodity share landlord who
  4 32 owns an interest in a networking farmers corporation
  4 33 holding agricultural land under section 10.3 must rent
  4 34 an additional one hundred fifty acres of agricultural
  4 35 land on a commodity share basis for each farmers
  4 36 entity holding agricultural land under this chapter in
  4 37 which the commodity share landlord acquires an
  4 38 interest."
  4 39    #16.  Page 5, lines 13 and 14, by striking the
  4 40 words "one thousand five hundred" and inserting the
  4 41 following:  "six hundred forty".
  4 42    #17.  Page 5, line 21, by striking the words "a ten
  4 43 percent or greater" and inserting the following:
  4 44 "an".
  4 45    #18.  Page 5, line 35, by striking the words "one
  4 46 thousand five hundred" and inserting the following:
  4 47 "six hundred forty".
  4 48    #19.  Page 6, by striking lines 8 and 9 and
  4 49 inserting the following:  "law, the networking farmers
  4 50 limited".
  5  1    #20.  Page 6, by inserting after line 27 the
  5  2 following:
  5  3    "___.  A qualified commodity share landlord who
  5  4 owns an interest in a networking farmers limited
  5  5 liability company holding agricultural land under
  5  6 section 10.5 must rent an additional one hundred fifty
  5  7 acres of agricultural land on a commodity share basis
  5  8 for each farmers entity holding agricultural land
  5  9 under this chapter in which the commodity share
  5 10 landlord acquires an interest."
  5 11    #21.  Page 7, line 3, by striking the words "grain
  5 12 or forage" and inserting the following:  "forage or
  5 13 grain".
  5 14    #22.  Page 7, line 5, by striking the word "has"
  5 15 and inserting the following:  "holds".
  5 16    #23.  Page 7, line 10, by striking the word "crop"
  5 17 and inserting the following:  "grain".
  5 18    #24.  Page 7, line 16, by striking the word "An"
  5 19 and inserting the following:  "Except as provided in
  5 20 this section, an".
  5 21    #25.  Page 7, lines 18 and 19, by striking the
  5 22 words "a ten percent or greater" and inserting the
  5 23 following:  "an".
  5 24    #26.  Page 7, by striking line 28 and inserting the
  5 25 following:  "However, notwithstanding section 9H.4,
  5 26 all of the following shall apply:
  5 27    (1)  A cooperative".
  5 28    #27.  Page 7, line 32, by striking the words "one
  5 29 thousand five hundred" and inserting the following:
  5 30 "six hundred forty".
  5 31    #28.  Page 7, by inserting after line 32 the
  5 32 following:
  5 33    "(2)  An interest in agricultural land held by a
  5 34 farmers cooperative association shall not be
  5 35 attributable to a member who is an entity organized
  5 36 under state law, if the entity holds a five percent or
  5 37 less interest in the farmers cooperative association."
  5 38    #29.  Page 8, by striking lines 4 through 6 and
  5 39 inserting the following:  "cooperative association by
  5 40 operation of law, the association may disregard the
  5 41 transfer for".
  5 42    #30.  Page 8, by inserting after line 23 the
  5 43 following:
  5 44    "Sec. ___.  NEW SECTION.  10.8A  PROCEDURE FOR
  5 45 ACQUISITION – REVERSE REFERENDUM; DISSENT.
  5 46    A farmers cooperative association shall not acquire
  5 47 an interest in agricultural land or in a farmers
  5 48 entity, unless all of the following apply:
  5 49    1.  The board of directors of the farmers
  5 50 cooperative association adopts a resolution
  6  1 authorizing the acquisition.  Except as provided in
  6  2 this section, the resolution shall become effective
  6  3 thirty-one days from the date that the resolution was
  6  4 adopted.  The farmers cooperative association is not
  6  5 required to comply with the procedures of this section
  6  6 for as long as the resolution remains in effect.  The
  6  7 resolution shall contain all of the following:
  6  8    a.  A declaration stating that the farmers
  6  9 cooperative association reserves the right to acquire
  6 10 agricultural land or an interest in a farmers entity
  6 11 under this chapter.
  6 12    b.  A description of a planned acquisition, if any,
  6 13 including the location of agricultural land planned to
  6 14 be acquired, the identity of any farmers entity in
  6 15 which the farmers cooperative association plans to
  6 16 acquire an interest, and the nature of any farming
  6 17 operation which is planned to occur on land acquired
  6 18 by the farmers cooperative association or conducted by
  6 19 the farmers entity.
  6 20    c.  The date that the resolution was adopted and
  6 21 the date that it will take effect.
  6 22    2.  Within five days following the date that the
  6 23 resolution authorizing the farmers cooperative
  6 24 association to acquire an interest in agricultural
  6 25 land or acquire an interest in a farmers entity is
  6 26 adopted, the farmers cooperative association must
  6 27 provide notice of the resolution as provided in this
  6 28 section.  The notice shall be in the following form:  
  6 29                         NOTICE
  6 30       MEMBERS OF THE (INSERT NAME OF THE FARMERS 
  6 31                COOPERATIVE ASSOCIATION)
  6 32    THE (INSERT NAME OF THE FARMERS COOPERATIVE
  6 33 ASSOCIATION) IS PLANNING ON ACQUIRING AN INTEREST IN
  6 34 AGRICULTURAL LAND WHICH MAY BE USED FOR FARMING OR
  6 35 ACQUIRING AN INTEREST IN A BUSINESS THAT OWNS
  6 36 AGRICULTURAL LAND THAT MAY BE USED FOR FARMING.  UNDER
  6 37 IOWA CODE CHAPTER 10, THE (INSERT NAME OF THE FARMERS
  6 38 COOPERATIVE ASSOCIATION) IS A FARMERS COOPERATIVE
  6 39 ASSOCIATION.  WITHIN A LIMITED TIME PERIOD:  (1)
  6 40 VOTING MEMBERS MAY PETITION A FARMERS COOPERATIVE
  6 41 ASSOCIATION TO REQUIRE A MEMBERSHIP VOTE TO APPROVE
  6 42 THE ACQUISITION; AND (2) ALL HOLDERS OF MEMBERS'
  6 43 EQUITY MAY DEMAND PAYMENT OF THE FAIR VALUE OF THEIR
  6 44 INTERESTS.
  6 45    a.  The notice must be published in a newspaper
  6 46 having a general circulation in the county where the
  6 47 farmers cooperative association is located as provided
  6 48 in section 618.3. The notice shall be printed as
  6 49 provided in section 618.17.
  6 50    b.  The notice shall be delivered to all holders of
  7  1 members' equity in the farmers cooperative
  7  2 association, including members and shareholders, by
  7  3 mailing the notice to the holder's last known address
  7  4 as shown on the books of the farmers cooperative
  7  5 association.  The notice shall be accompanied by a
  7  6 copy of the resolution adopted by the board pursuant
  7  7 to this section, and a copy of this section.
  7  8    3.  Within thirty days following the date that the
  7  9 resolution authorizing the farmers cooperative
  7 10 association to acquire an interest in agricultural
  7 11 land or acquire an interest in a farmers entity is
  7 12 adopted, at least twenty percent of the voting members
  7 13 of the farmers cooperative association may file a
  7 14 petition with the board of directors demanding a
  7 15 referendum under this subsection.
  7 16    a.  If a valid petition is filed, the board of
  7 17 directors shall call a special referendum of voting
  7 18 members at a regular or special meeting, as provided
  7 19 in section 499.27.  The filing of the petition
  7 20 suspends the effectiveness of the resolution until a
  7 21 referendum is conducted as provided in this
  7 22 subsection.
  7 23    b.  The resolution shall not become effective as
  7 24 otherwise provided in this section, until the
  7 25 resolution is approved by a majority vote of the
  7 26 voting members of the farmers cooperative association
  7 27 casting ballots at the meeting to conduct the
  7 28 referendum.
  7 29    4.  a.  Within thirty days following the date that
  7 30 the resolution authorizing the farmers cooperative
  7 31 association to acquire an interest in agricultural
  7 32 land or acquire an interest in a farmers entity is
  7 33 adopted, a holder of members' equity, including a
  7 34 member or shareholder, may dissent to an acquisition
  7 35 as expressed in the resolution adopted by the board of
  7 36 directors under this section.
  7 37    b.  The holder of members' equity shall dissent by
  7 38 filing a demand with the board of directors.  The
  7 39 farmers cooperative association shall pay the holder
  7 40 the fair value of that holder's interest as if the
  7 41 holder were a member dissenting to a merger or
  7 42 consolidation, as provided in section 499.66, upon
  7 43 surrender of the holder's evidence of equity in the
  7 44 farmers cooperative association, including a
  7 45 certificate of membership or shares.
  7 46    c.  The farmers cooperative association is not
  7 47 required to pay the holder of members' equity the fair
  7 48 value of that holder's interest as provided in this
  7 49 subsection, if the resolution provided for in this
  7 50 section does not become effective."
  8  1    #31.  Page 8, line 35, by striking the words "grain
  8  2 or" and inserting the following:  "forage or grain".
  8  3    #32.  Page 9, line 1, by striking the word
  8  4 "forage".
  8  5    #33.  Page 9, line 2, by striking the word "has"
  8  6 and inserting the following:  "holds".
  8  7    #34.  Page 9, line 8, by striking the word "crop"
  8  8 and inserting the following:  "grain".
  8  9    #35.  Page 9, by inserting after line 13 the
  8 10 following:
  8 11    "c.  Less than fifty percent of the interest in the
  8 12 farmers cooperative limited liability company is held
  8 13 by members which are parties to intra-company loan
  8 14 agreements.  If more than one type of membership
  8 15 interest is established, including any series as
  8 16 provided in section 490A.305 or any class or group as
  8 17 provided in section 490A.307, less than fifty percent
  8 18 of the interest in each type of membership shall be
  8 19 held by members which are parties to intra-company
  8 20 loan agreements.
  8 21    d.  The farmers cooperative limited liability
  8 22 company does not own swine or contract for the care
  8 23 and feeding of swine, if a member of the farmers
  8 24 cooperative limited liability company is a regional
  8 25 cooperative association."
  8 26    #36.  Page 9, line 31, by striking the words "one
  8 27 thousand five hundred" and inserting the following:
  8 28 "six hundred forty".
  8 29    #37.  Page 10, by striking lines 5 and 6 and
  8 30 inserting the following:  "law, the farmers
  8 31 cooperative limited liability".
  8 32    #38.  Page 10, line 18, by striking the figure
  8 33 "10.13" and inserting the following:  "10.12".
  8 34    #39.  Page 10, line 32, by striking the figure
  8 35 "10.13" and inserting the following:  "10.12".
  8 36    #40.  Page 12, by striking line 13 and inserting
  8 37 the following:  "corporation as defined in section
  8 38 9H.1 or networking farmers corporation as defined in
  8 39 section 10.1, holding an".
  8 40    #41.  Page 12, by striking lines 29 through 31 and
  8 41 inserting the following:  "including an authorized
  8 42 limited liability company as defined in section 9H.1,
  8 43 or a networking farmers limited liability company or
  8 44 farmers cooperative limited liability company as
  8 45 defined in section 10.1, holding an interest in
  8 46 agricultural".
  8 47    #42.  Page 14, line 16, by striking the words "ten
  8 48 percent or less of" and inserting the following:
  8 49 "less than a ten percent interest in".
  8 50    #43.  Page 15, by striking lines 9 through 13.
  9  1    #44.  Page 15, by striking lines 25 and 26.
  9  2    #45.  By renumbering as necessary.  
  9  3 HF 2335S
  9  4 da/cc/26
     

Text: H08994                            Text: H08996
Text: H08900 - H08999                   Text: H Index
Bills and Amendments: General Index     Bill History: General Index

Return To Home index


© 1998 Cornell College and League of Women Voters of Iowa


Comments about this site or page? webmaster@legis.iowa.gov.
Please remember that the person listed above does not vote on bills. Direct all comments concerning legislation to State Legislators.

Last update: Thu Apr 9 03:45:35 CDT 1998
URL: /DOCS/GA/77GA/Legislation/H/08900/H08995/980408.html
jhf