Text: SSB02073 Text: SSB02075 Text: SSB02000 - SSB02099 Text: SSB Index Bills and Amendments: General Index Bill History: General Index
PAG LIN
1 1 Section 1. Section 9H.5, subsection 2, Code 1997, is
1 2 amended by striking the subsection and inserting in lieu
1 3 thereof the following:
1 4 2. a. A person who holds an interest in an authorized
1 5 entity shall not hold an interest in another authorized
1 6 entity, if all authorized entities in which the person would
1 7 hold an interest own or lease a combined total of more than
1 8 one thousand five hundred acres of agricultural land. If a
1 9 person holds an interest in more than one authorized entity,
1 10 all authorized entities in which the person holds an interest
1 11 shall not own or lease a combined total of more than one
1 12 thousand five hundred acres of agricultural land.
1 13 b. As used in this section, "interest in an authorized
1 14 entity" means holding an interest as any of the following:
1 15 (1) A stockholder of an authorized farm corporation.
1 16 (2) A beneficiary of an authorized trust.
1 17 (3) A limited partner in a limited partnership which owns
1 18 or leases agricultural land, other than a family farm limited
1 19 partnership.
1 20 (4) A member of an authorized limited liability company.
1 21 c. This subsection shall not apply to a person holding an
1 22 interest in an authorized entity to the extent that one of the
1 23 following also applies:
1 24 (1) The person holds less than a thirty percent interest
1 25 in each of the multiple authorized entities even though the
1 26 combined number of acres of agricultural land owned or leased
1 27 by the multiple authorized entities in which the person holds
1 28 interests exceeds the limit provided in this section.
1 29 (2) The person's interest in the authorized entity was
1 30 held on or before July 1, 1998.
1 31 EXPLANATION
1 32 This bill amends Code chapter 9H, which currently, in part,
1 33 prohibits a person from acquiring an interest in more than one
1 34 authorized farm corporation, authorized trust, authorized
1 35 limited liability company, or limited partnership which owns
2 1 or leases agricultural land.
2 2 This bill provides that a person who holds an interest in
2 3 one of these entities, defined in the bill as an "authorized
2 4 entity", is prohibited from holding an interest in another
2 5 authorized entity, if all authorized entities in which the
2 6 person would hold an interest own or lease a combined total of
2 7 more than 1,500 acres of agricultural land. The bill also
2 8 provides that if a person holds an interest in more than one
2 9 authorized entity, all authorized entities in which the person
2 10 holds an interest are prohibited from owning or leasing a
2 11 combined total of more than 1,500 acres of agricultural land.
2 12 These prohibitions do not apply to a person holding an
2 13 interest in multiple authorized entities, if the person holds
2 14 less than a 30 percent interest in each of the entities even
2 15 though the combined number of acres of agricultural land owned
2 16 or leased by the authorized entities exceeds the 1,500-acre
2 17 limit.
2 18 A variety of penalties would apply to a person in violation
2 19 of the bill. An authorized entity violating the bill is
2 20 subject to a civil penalty of not more than $25,000 and must
2 21 divest itself of any land held in violation of the bill within
2 22 one year after judgment. A civil penalty of not more than
2 23 $1,000 may be imposed on a person who becomes a stockholder of
2 24 an authorized farm corporation, beneficiary of an authorized
2 25 trust, member of an authorized limited liability company, or
2 26 limited partner in a limited partnership in violation of the
2 27 bill. The person must also divest the interest held by the
2 28 person.
2 29 LSB 3516XL 77
2 30 da/jw/5.1
Text: SSB02073 Text: SSB02075 Text: SSB02000 - SSB02099 Text: SSB Index Bills and Amendments: General Index Bill History: General Index
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