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PAG LIN 1 1 HOUSE FILE 322 1 2 1 3 AN ACT 1 4 RELATING TO AGRICULTURAL PRODUCTION, PROVIDING PENALTIES, AND 1 5 PROVIDING AN EFFECTIVE DATE. 1 6 1 7 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 1 8 1 9 Section 1. Section 9H.1, subsection 12, Code 1999, is 1 10 amended to read as follows: 1 11 12. "Feedlot" means a lot, yard, corral, building, or 1 12 other area in which hogs or cattle fed for slaughter are 1 13 confined. The term includes areas which are used for the 1 14 raising of crops or other vegetation and upon which hogs or 1 15 cattle fed for slaughter are allowed to graze or feed. 1 16 Sec. 2. NEW SECTION. 8E.1 DEFINITIONS. 1 17 As used in this chapter, unless the context otherwise 1 18 requires: 1 19 1. "Active contractor" means a person who owns a commodity 1 20 that is produced by a contract producer at the contract 1 21 producer's contract operation pursuant to a production 1 22 contract executed pursuant to section 8E.2. 1 23 2. "Commodity" means livestock, raw milk, or a crop. 1 24 3. "Contract crop field" means farmland where a crop is 1 25 produced according to a production contract executed pursuant 1 26 to section 8E.2 by a contract producer who holds a legal 1 27 interest in the farmland. 1 28 4. "Contract livestock facility" means an animal feeding 1 29 operation as defined in section 455B.161, in which livestock 1 30 or raw milk is produced according to a production contract 1 31 executed pursuant to section 8E.2 by a contract producer who 1 32 holds a legal interest in the animal feeding operation. 1 33 "Contract livestock facility" includes a confinement feeding 1 34 operation as defined in section 455B.161, an open feedlot, or 1 35 an area which is used for the raising of crops or other 2 1 vegetation and upon which livestock is fed for slaughter or is 2 2 allowed to graze or feed. 2 3 5. "Contract operation" means a contract livestock 2 4 facility or contract crop field. 2 5 6. "Contract producer" means a person who holds a legal 2 6 interest in a contract operation and who produces a commodity 2 7 at the contract producer's contract operation under a 2 8 production contract executed pursuant to section 8E.2. 2 9 7. "Contractor" means an active contractor or a passive 2 10 contractor. 2 11 8. a. "Crop" means a plant used for food, animal feed, 2 12 fiber, or oil, if the plant is classified as a forage or 2 13 cereal plant, including but not limited to alfalfa, barley, 2 14 buckwheat, corn, flax, forage, millet, oats, popcorn, rye, 2 15 sorghum, soybeans, sunflowers, wheat, and grasses used for 2 16 forage or silage. 2 17 b. A "crop" does not include trees or nuts or fruit grown 2 18 on trees; sod; shrubs; greenhouse plants; or plants or plant 2 19 parts produced for precommercial, experimental, or research 2 20 purposes. 2 21 9. "Farmland" means agricultural land that is suitable for 2 22 use in farming as defined in section 9H.1. 2 23 10. "Livestock" means beef cattle, dairy cattle, sheep, or 2 24 swine. 2 25 11. "Open feedlot" means an unroofed or partially roofed 2 26 animal feeding operation in which no crop, vegetation, or 2 27 forage growth or residue cover is maintained during the period 2 28 that animals are confined in the operation. 2 29 12. "Passive contractor" means a person who furnishes 2 30 management services to a contract producer, and who does not 2 31 own a commodity that is produced by the contract producer at 2 32 the contract producer's contract operation according to a 2 33 production contract which is executed pursuant to section 2 34 8E.2. 2 35 13. "Produce" means to do any of the following: 3 1 a. Provide feed or services relating to the care and 3 2 feeding of livestock. If the livestock is dairy cattle, 3 3 "produce" includes milking the dairy cattle and storing raw 3 4 milk at the contract producer's contract livestock facility. 3 5 b. Provide for planting, raising, harvesting, and storing 3 6 a crop. "Produce" includes preparing the soil for planting 3 7 and nurturing the crop by the application of fertilizers or 3 8 soil conditioners as defined in section 200.3 or pesticides as 3 9 defined in section 206.2. 3 10 14. "Production contract" means an oral or written 3 11 agreement executed pursuant to section 8E.2 that provides for 3 12 the production of a commodity or the provision of management 3 13 services relating to the production of a commodity by a 3 14 contract producer. 3 15 Sec. 3. NEW SECTION. 8E.2 PRODUCTION CONTRACTS GOVERNED 3 16 BY THIS CHAPTER. 3 17 1. This chapter applies to a production contract that 3 18 relates to the production of a commodity owned by an active 3 19 contractor and produced by a contract producer at the contract 3 20 producer's contract operation, if one of the following 3 21 applies: 3 22 a. The contract is executed by an active contractor and a 3 23 contract producer for the production of the commodity. 3 24 b. The contract is executed by an active contractor and a 3 25 passive contractor for the provision of management services to 3 26 the contract producer in the production of the commodity. 3 27 c. The contract is executed by a passive contractor and a 3 28 contract producer, if all of the following apply: 3 29 (1) The contract provides for management services 3 30 furnished by the passive contractor to the contract producer 3 31 in the production of the commodity. 3 32 (2) The passive contractor has a contractual relationship 3 33 with the active contractor involving the production of the 3 34 commodity. 3 35 2. A production contract is executed when it is signed or 4 1 orally agreed to by each party or by a person who is 4 2 authorized by a party to act on the party's behalf. 4 3 Sec. 4. NEW SECTION. 8E.3 PRODUCTION CONTRACTS – 4 4 CONFIDENTIALITY PROHIBITED. 4 5 1. A contractor shall not on or after the effective date 4 6 of this Act enforce a provision in a production contract if 4 7 the provision provides that information contained in the 4 8 production contract is confidential. 4 9 2. A provision which is part of a production contract is 4 10 void, if the provision states that information contained in 4 11 the production contract is confidential. The confidentiality 4 12 provision is void whether the confidentiality provision is 4 13 express or implied; oral or written; required or conditional; 4 14 contained in the production contract, another production 4 15 contract, or in a related document, policy, or agreement. 4 16 This section does not affect other provisions of a production 4 17 contract or a related document, policy, or agreement which can 4 18 be given effect without the voided provision. This section 4 19 does not require a party to a production contract to divulge 4 20 the information in the production contract to another person. 4 21 Sec. 5. NEW SECTION. 8E.4 ENFORCEMENT. 4 22 1. The attorney general's office is the primary agency 4 23 responsible for enforcing this chapter. 4 24 2. In enforcing the provisions of this chapter, the 4 25 attorney general may do all of the following: 4 26 a. Apply to the district court for an injunction to do any 4 27 of the following: 4 28 (1) Restrain a contractor from engaging in conduct or 4 29 practices in violation of this chapter. 4 30 (2) Require a contractor to comply with a provision of 4 31 this chapter. 4 32 b. Apply to district court for the issuance of a subpoena 4 33 to obtain a production contract for purposes of enforcing this 4 34 chapter. 4 35 c. Bring an action in district court to enforce penalties 5 1 provided in section 8E.5, including the assessment and 5 2 collection of civil penalties. 5 3 Sec. 6. NEW SECTION. 8E.5 PENALTIES. 5 4 A contractor who executes a production contract that 5 5 includes a confidentiality provision in a production contract 5 6 in violation of section 8E.3 is guilty of a fraudulent 5 7 practice as provided in section 714.8. 5 8 Sec. 7. Section 579A.1, subsections 2, 3, and 4, Code 5 9 1999, are amended to read as follows: 5 10 2. "Custom cattle feedlot" means a feedlot where cattle 5 11 owned by a person aresubject to care and feeding performed5 12 provided feed and care by another person. 5 13 3. "Custom cattle feedlot operator" means the owner of a 5 14 custom cattle feedlot ora person managing the custom cattle5 15feedlot, if the person is authorized by the owner to file and5 16enforce a lien under this chapterthe owner's personal 5 17 representative. 5 18 4. "Feedlot" meansthe same as defined in section 172D.1a 5 19 lot, yard, corral, building, or other area in which cattle are 5 20 confined and fed and maintained for forty-five days or more in 5 21 any twelve-month period. 5 22 Sec. 8. Section 579A.1, Code 1999, is amended by adding 5 23 the following new subsection: 5 24 NEW SUBSECTION. 4A. "Personal representative" means a 5 25 person who is authorized by the owner of a custom cattle 5 26 feedlot to act on behalf of the owner, including by executing 5 27 an agreement, managing a custom cattle feedlot, or filing and 5 28 enforcing liens under this chapter. 5 29 Sec. 9. Section 579A.2, subsection 1, Code 1999, is 5 30 amended to read as follows: 5 31 1. A custom cattle feedlot operator shall have a lien upon 5 32 the cattle and the identifiable cash proceeds from the sale of 5 33 the cattle for the amount of the contract price for the feed 5 34 and care of thelivestockcattle at the custom cattle feedlot 5 35agreed uponpursuant to a written or oral agreement by the 6 1 custom cattle feedlot operator and the person who owns the 6 2 cattle, which may be enforced as provided in section 579A.3. 6 3 Sec. 10. Section 579A.2, subsection 2, paragraph e, Code 6 4 1999, is amended to read as follows: 6 5 e. The printed name and signature of the person filing the 6 6 form. 6 7 Sec. 11. Section 579A.2, subsection 3, Code 1999, is 6 8 amended to read as follows: 6 9 3. Except as provided in chapter 581, a lien created under 6 10 this section until preserved and a lien preserved under this 6 11 section is superior to and shall have priority over a 6 12 conflicting lien or security interest in the cattle, including 6 13 a lien or security interest that was perfected prior to the 6 14 creation of the lien provided under this section. 6 15 Sec. 12. NEW SECTION. 579A.4 WAIVERS UNENFORCEABLE. 6 16 A waiver of a right created by this chapter, including but 6 17 not limited to, a waiver of the right to file a lien pursuant 6 18 to this chapter is void and unenforceable. This section does 6 19 not affect other provisions of a contract, including a 6 20 production contract or a related document, policy, or 6 21 agreement which can be given effect without the voided 6 22 provision. 6 23 Sec. 13. NEW SECTION. 579A.5 ALTERNATE LIEN PROCEDURE. 6 24 A person who is a custom cattle feedlot operator may file 6 25 and enforce a lien as a contract producer under this chapter 6 26 or chapter 579B, but not both. 6 27 Sec. 14. NEW SECTION. 579B.1 DEFINITIONS. 6 28 As used in this chapter, unless the context otherwise 6 29 requires: 6 30 1. "Commodity" means livestock, raw milk, or a crop. 6 31 2. "Contract crop field" means farmland where a crop is 6 32 produced according to a production contract executed pursuant 6 33 to section 579B.2 by a contract producer who owns or leases 6 34 the farmland. 6 35 3. "Contract livestock facility" means an animal feeding 7 1 operation as defined in section 455B.161, in which livestock 7 2 or raw milk is produced according to a production contract 7 3 executed pursuant to section 579B.2 by a contract producer who 7 4 owns or leases the animal feeding operation. "Contract 7 5 livestock facility" includes a confinement feeding operation 7 6 as defined in section 455B.161, an open feedlot, or an area 7 7 which is used for the raising of crops or other vegetation and 7 8 upon which livestock is fed for slaughter or is allowed to 7 9 graze or feed. 7 10 4. "Contract operation" means a contract livestock 7 11 facility or contract crop field. 7 12 5. "Contract producer" means a person who owns or leases a 7 13 contract operation and who produces a commodity under a 7 14 production contract executed pursuant to section 579B.2. 7 15 6. "Contractor" means a person who owns a commodity at the 7 16 time that the commodity is under the authority of the contract 7 17 producer as provided in section 579B.3 pursuant to a 7 18 production contract executed pursuant to section 579B.2. 7 19 7. a. "Crop" means a plant used for food, animal feed, 7 20 fiber, or oil, if the plant is classified as a forage or 7 21 cereal plant, including but not limited to alfalfa, barley, 7 22 buckwheat, corn, flax, forage, millet, oats, popcorn, rye, 7 23 sorghum, soybeans, sunflowers, wheat, and grasses used for 7 24 forage or silage. 7 25 b. A "crop" does not include trees or nuts or fruit grown 7 26 on trees; sod; shrubs; greenhouse plants; or plants or plant 7 27 parts produced for precommercial, experimental, or research 7 28 purposes. 7 29 8. "Farmland" means agricultural land suitable for use in 7 30 farming as defined in section 9H.1. 7 31 9. "Livestock" means beef cattle, dairy cattle, sheep, or 7 32 swine. 7 33 10. "Open feedlot" means the same as defined in section 7 34 8E.1. 7 35 11. "Personal representative" means a person who is 8 1 authorized by a contract producer to act on behalf of the 8 2 contract producer, including by executing an agreement, 8 3 managing a contract operation, or filing and enforcing a lien 8 4 as provided in this chapter. 8 5 12. "Processor" means a person engaged in the business of 8 6 manufacturing goods from commodities, including by 8 7 slaughtering or processing livestock, processing raw milk, or 8 8 processing crops. 8 9 13. "Produce" means to do any of the following: 8 10 a. Provide feed or services relating to the care and 8 11 feeding of livestock. If the livestock is dairy cattle, 8 12 "produce" includes milking the dairy cattle and storing raw 8 13 milk at the contract producer's contract livestock facility. 8 14 b. Provide for planting, raising, harvesting, and storing 8 15 crop. "Produce" includes preparing the soil for planting and 8 16 nurturing the crop by the application of fertilizers or soil 8 17 conditioners as defined in section 200.3 or pesticides as 8 18 defined in section 206.2. 8 19 14. "Production contract" means an oral or written 8 20 agreement executed pursuant to section 579B.2 that provides 8 21 for the production of a commodity by a contract producer. 8 22 Sec. 15. NEW SECTION. 579B.2 LIEN DEPENDS UPON 8 23 PRODUCTION CONTRACTS. 8 24 1. A lien established under section 579B.3 depends upon 8 25 the execution of a production contract that provides for 8 26 producing a commodity owned by a contractor by a contract 8 27 producer at the contract producer's contract operation. 8 28 2. A production contract is executed when it is signed or 8 29 orally agreed to by each party to the contract or by a person 8 30 authorized by a party to act on the party's behalf, including 8 31 the contract producer's personal representative. 8 32 3. This chapter applies to any production contract that is 8 33 in force on or after the effective date of this Act, 8 34 regardless of the date that the production contract is 8 35 executed. 9 1 Sec. 16. NEW SECTION. 579B.3 ESTABLISHMENT OF LIEN – 9 2 PRIORITY. 9 3 A contract producer who is a party to a production contract 9 4 executed pursuant to section 579B.2 shall have a lien as 9 5 provided in this section. The amount of the lien shall be the 9 6 amount owed to the contract producer pursuant to the terms of 9 7 the production contract, which may be enforced as provided in 9 8 section 579B.5. 9 9 1. a. If the production contract is for the production of 9 10 livestock or raw milk, all of the following shall apply: 9 11 (1) For livestock, the lien shall apply to all of the 9 12 following: 9 13 (a) If the livestock is not sold or slaughtered by the 9 14 contractor, the lien shall be on the livestock. 9 15 (b) If the livestock is sold by the contractor, the lien 9 16 shall be on cash proceeds from the sale. For purposes of this 9 17 subparagraph, cash held by the contractor shall be deemed to 9 18 be cash proceeds from the sale regardless of whether it is 9 19 identifiable cash proceeds. 9 20 (c) If the livestock is slaughtered by the contractor, the 9 21 lien shall be on any property of the contractor that may be 9 22 subject to a security interest as provided in section 9 23 554.9102. 9 24 (2) For raw milk, the lien shall apply to all of the 9 25 following: 9 26 (a) If the raw milk is not sold or processed by the 9 27 contractor, the lien shall be on the raw milk. 9 28 (b) If the raw milk is sold by the contractor, the lien 9 29 shall be on cash proceeds from the sale. For purposes of this 9 30 subparagraph, cash held by the contractor shall be deemed to 9 31 be cash proceeds from the sale regardless of whether it is 9 32 identifiable cash proceeds. 9 33 (c) If the raw milk is processed by the contractor, the 9 34 lien shall be on any property of the contractor that may be 9 35 subject to a security interest as provided in section 10 1 554.9102. 10 2 b. The lien on livestock or raw milk is created at the 10 3 time the livestock arrives at the contract livestock facility 10 4 and continues for one year after the livestock is no longer 10 5 under the authority of the contract producer. For purposes of 10 6 this section, livestock is no longer under the authority of 10 7 the contract producer when the livestock leaves the contract 10 8 livestock facility. 10 9 2. a. If the production contract is for the production of 10 10 crops, all of the following shall apply: 10 11 (1) If the crop is not sold or processed by the 10 12 contractor, the lien shall be on the crop. 10 13 (2) If the crop is sold by the contractor, the lien shall 10 14 be on cash proceeds from the sale. For purposes of this 10 15 subparagraph, cash held by the contractor shall be deemed to 10 16 be cash proceeds from the sale regardless of whether it is 10 17 identifiable cash proceeds. 10 18 (3) If the crop is processed by the contractor, the lien 10 19 shall be on any property of the contractor that may be subject 10 20 to a security interest as provided in section 554.9102. 10 21 b. The lien on a crop is created at the time the crop is 10 22 planted and continues for one year after the crop is no longer 10 23 under the authority of the contract producer. For purposes of 10 24 this section, a crop is no longer under the authority of the 10 25 contract producer when the crop or a warehouse receipt issued 10 26 by a warehouse operator licensed under chapter 203C for grain 10 27 from the crop is no longer under the custody or control of the 10 28 contract producer. 10 29 Sec. 17. NEW SECTION. 579B.4 PRESERVING THE LIEN – 10 30 FILING REQUIREMENTS. 10 31 1. In order to preserve a lien created pursuant to section 10 32 579B.3, a contract producer must file in the office of the 10 33 secretary of state a lien statement on a form prescribed by 10 34 the secretary of state. If the lien arises out of producing 10 35 livestock or raw milk, the contract producer must file the 11 1 lien within forty-five days after the day that the livestock 11 2 first arrives at the contract livestock facility. If the lien 11 3 arises out of producing a crop, the contract producer must 11 4 file the lien within forty-five days after the day that the 11 5 crop is first planted. The secretary of state shall charge a 11 6 fee of not more than ten dollars for filing the statement. 11 7 The secretary of state may adopt rules pursuant to chapter 17A 11 8 for the electronic filing of the statements. 11 9 2. The statement must include all of the following: 11 10 a. An estimate of the amount owed pursuant to the 11 11 production contract. 11 12 b. The date when the livestock arrives at the contract 11 13 livestock facility or the date when the crop was planted. 11 14 c. The estimated duration of the period when the commodity 11 15 will be under the authority of the contract producer. 11 16 d. The name of the party to the production contract whose 11 17 commodity is produced pursuant to the production contract. 11 18 e. The description of the location of the contract 11 19 operation, by county and township. 11 20 f. The printed name and signature of the person filing the 11 21 form. 11 22 3. Except as provided in chapter 581, a lien created under 11 23 this section until preserved and a lien preserved under this 11 24 section is superior to and shall have priority over a 11 25 conflicting lien or security interest in the commodity, 11 26 including a lien or security interest that was perfected prior 11 27 to the creation of the lien under this chapter. 11 28 Sec. 18. NEW SECTION. 579B.5 ENFORCEMENT. 11 29 Before a commodity leaves the authority of the contract 11 30 producer as provided in section 579B.3, the contract producer 11 31 may foreclose a lien created in that section in the manner 11 32 provided for the foreclosure of secured transactions as 11 33 provided in sections 554.9504, 554.9506, and 554.9507. After 11 34 the commodity is no longer under the authority of the contract 11 35 producer, the contract producer may enforce the lien in the 12 1 manner provided in chapter 554, article 9, part 5. 12 2 Sec. 19. NEW SECTION. 579B.6 WAIVERS UNENFORCEABLE. 12 3 A waiver of a right created by this chapter, including but 12 4 not limited to a waiver of the right to file a lien pursuant 12 5 to this chapter, is void and unenforceable. This section does 12 6 not affect other provisions of a contract, including a 12 7 production contract or a related document, policy, or 12 8 agreement which can be given effect without the voided 12 9 provision. 12 10 Sec. 20. NEW SECTION. 579B.7 ALTERNATE LIEN PROCEDURE. 12 11 A person who is a custom cattle feedlot operator as defined 12 12 in section 579A.1 may file and enforce a lien as a contract 12 13 producer under this chapter or chapter 579A, but not both. 12 14 Sec. 21. Section 714.8, Code 1999, is amended by adding 12 15 the following new subsection: 12 16 NEW SUBSECTION. 17. A contractor who enforces a provision 12 17 in a production contract that provides that information 12 18 contained in the production contract is confidential as 12 19 provided in section 8E.3. 12 20 Sec. 22. SEVERABILITY. If any provision of this Act or 12 21 the application of this Act to any person or circumstance is 12 22 held invalid, the invalidity does not affect other provisions 12 23 or applications of this Act which shall be given effect 12 24 without the invalid provision or application, and to this end 12 25 the provisions of this Act are severable. 12 26 Sec. 23. DIRECTIONS TO CODE EDITOR. The Code editor may 12 27 codify the provisions of chapter 8E as enacted in this Act 12 28 into another chapter or combine the provisions of chapter 8E 12 29 as enacted in this Act with the provisions of chapter 172C as 12 30 enacted in 1999 Iowa Acts, Senate File 436, into one chapter 12 31 with multiple subchapters, if Senate File 436 is enacted by 12 32 the 1999 Session of the Seventy-eighth General Assembly. 12 33 Sec. 24. EFFECTIVE DATE. This Act, being deemed of 12 34 immediate importance, takes effect upon enactment. 12 35 13 1 13 2 13 3 BRENT SIEGRIST 13 4 Speaker of the House 13 5 13 6 13 7 13 8 MARY E. KRAMER 13 9 President of the Senate 13 10 13 11 I hereby certify that this bill originated in the House and 13 12 is known as House File 322, Seventy-eighth General Assembly. 13 13 13 14 13 15 13 16 ELIZABETH ISAACSON 13 17 Chief Clerk of the House 13 18 Approved , 1999 13 19 13 20 13 21 13 22 THOMAS J. VILSACK 13 23 Governor
Text: HF00321 Text: HF00323 Text: HF00300 - HF00399 Text: HF Index Bills and Amendments: General Index Bill History: General Index
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