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