Text: HF00596 Text: HF00598 Text: HF00500 - HF00599 Text: HF Index Bills and Amendments: General Index Bill History: General Index
PAG LIN 1 1 Section 1. Section 22.7, Code 1999, is amended by adding 1 2 the following new subsection: 1 3 NEW SUBSECTION. 38. Information contained in a livestock 1 4 contract submitted to the secretary of state to the extent 1 5 designated pursuant to section 172C.3. 1 6 Sec. 2. NEW SECTION. 172C.1 DEFINITIONS. 1 7 As used in this chapter, unless the context otherwise 1 8 requires: 1 9 1. "Contract information" means all information contained 1 10 in a livestock contract, including all provisions, terms, and 1 11 conditions of the contract. 1 12 2. "Family farm entity" means the same as defined in 1 13 section 10.1. 1 14 3. "Livestock" means the same as defined in section 717.1. 1 15 4. "Livestock contract" means a livestock production 1 16 contract or a livestock marketing contract. 1 17 5. "Livestock contractor" means a production contractor or 1 18 a marketing contractor. 1 19 6. "Livestock producer" means a person who is paid by a 1 20 production contractor to produce livestock on the premises of 1 21 the person under a production contract or who markets 1 22 livestock to a marketing contractor under a marketing 1 23 contract. 1 24 7. "Marketing contract" means a contract executed by a 1 25 livestock producer and a marketing contractor for the sale of 1 26 livestock produced by a livestock producer on land in which 1 27 the livestock producer holds a legal interest, if the 1 28 marketing contractor does not own the livestock during 1 29 production or make management decisions substantially 1 30 contributing to or affecting the production of the livestock. 1 31 8. "Marketing contractor" means a person who executes a 1 32 livestock marketing contract with a livestock producer. 1 33 9. "Produce" means to provide for the care and feeding of 1 34 livestock. 1 35 10. "Production contract" means a contract executed by a 2 1 livestock producer and a production contractor for the 2 2 production of livestock on land in which the livestock 2 3 producer holds a legal interest, if the production contractor 2 4 owns the livestock during production and makes management 2 5 decisions substantially contributing to or affecting the 2 6 production of the livestock. 2 7 11. "Production contractor" means a person who executes a 2 8 production contract with a farmer. 2 9 Sec. 3. NEW SECTION. 172C.2 PROVISIONS OF 2 10 CONFIDENTIALITY PROHIBITED. 2 11 1. Except as provided in this section, a provision of a 2 12 livestock contract is void, if the provision requires that 2 13 information in the contract, including but not limited to any 2 14 term or condition, be confidential. 2 15 2. This section does not affect other provisions of the 2 16 contract which can be given effect without the voided 2 17 provision. 2 18 3. The secretary of state, in consultation with the 2 19 attorney general, may provide by rule that the requirements of 2 20 subsection 1 do not require either party to divulge the 2 21 contract information to another person. 2 22 4. This secretary of state does not apply to a provision 2 23 that is a trade secret as provided in chapter 550. 2 24 Sec. 4. NEW SECTION. 172C.3 CONTRACT INFORMATION. 2 25 1. The secretary of state, in cooperation with the 2 26 attorney general, shall establish a system for the submission 2 27 of contract information to the secretary. Except as otherwise 2 28 provided in this section, a livestock contractor shall submit 2 29 the contract information to the secretary of state according 2 30 to rules adopted by the secretary of state in consultation 2 31 with the attorney general. The secretary of state may require 2 32 that the contract information be submitted in an electronic 2 33 format according to procedures required by the secretary of 2 34 state. The secretary of state shall provide for the routine 2 35 dissemination of the contract information for public 3 1 examination. However, the secretary of state, in cooperation 3 2 with the attorney general, may designate some contract 3 3 information as a confidential record under section 22.7, 3 4 including information that identifies the names of livestock 3 5 producers, if the release of the information would serve no 3 6 public purpose. 3 7 2. The attorney general shall have access to all contract 3 8 information required to be submitted to the secretary of 3 9 state. The attorney general may provide an analysis of 3 10 contract information in order to assist livestock producers 3 11 who are negotiating with livestock contractors. The attorney 3 12 general shall assist any committee of the general assembly 3 13 studying the effects of livestock contracting practices. 3 14 3. The secretary of state, in consultation with the 3 15 attorney general, may provide by rule that the requirements of 3 16 subsection 1 do not apply to a livestock contract, under any 3 17 of the following circumstances: 3 18 a. For a production contract, if any of the following 3 19 applies: 3 20 (1) Consideration owed to the livestock producer under all 3 21 production contracts executed by the livestock producer and 3 22 the production contractor during any twelve-month period is 3 23 less than three thousand dollars. 3 24 (2) The livestock producer is related to the production 3 25 contractor as a spouse, parent, grandparent, lineal ascendant 3 26 of a grandparent or spouse, or other lineal descendant of a 3 27 grandparent or spouse. 3 28 (3) The production contractor owns a legal interest in the 3 29 land where the livestock is produced. For purposes of this 3 30 subparagraph, a marketing contract or a security interest does 3 31 not give rise to a legal interest in land. 3 32 (4) The livestock producer and the production contractor 3 33 are part of the same family farm entity. 3 34 (5) The livestock is used for breeding. 3 35 (6) The livestock is used exclusively for research. 4 1 b. For a marketing contract, if any of the following 4 2 applies: 4 3 (1) The marketing contractor is a frozen food locker plant 4 4 regulated under chapter 172. 4 5 (2) The contract price paid to the livestock producer is 4 6 part of price information reported to the agricultural 4 7 marketing service of the United States department of 4 8 agriculture. 4 9 Sec. 5. NEW SECTION. 172C.4 FEES. 4 10 A livestock contractor required to submit contract 4 11 information to the secretary of state pursuant to section 4 12 172C.3 shall submit a fee to the secretary of state. The fee 4 13 shall equal twenty-five cents for each head of livestock, 4 14 other than poultry, and ten cents for each head of poultry 4 15 reported as provided in section 172C.3. Moneys collected from 4 16 the fees are appropriated to the secretary of state for 4 17 purposes of administering this chapter. At the close of each 4 18 fiscal year, any remaining moneys collected in fees pursuant 4 19 to this section shall not revert as provided in section 8.33, 4 20 but shall be deposited in the manure storage indemnity fund 4 21 created pursuant to section 455J.2. 4 22 Sec. 6. NEW SECTION. 172C.5 PENALTIES. 4 23 1. A livestock contractor who includes information in a 4 24 livestock contract in violation of section 172C.2 is guilty of 4 25 a fraudulent practice as provided in section 714.8. 4 26 2. A livestock contractor failing to submit contract 4 27 information as required by section 172C.3 is subject to a 4 28 civil penalty not to exceed one thousand dollars for each day 4 29 that timely or complete contract information is not submitted. 4 30 Sec. 7. NEW SECTION. 172C.6 ENFORCEMENT AND PENALTIES. 4 31 1. The attorney general's office is the primary agency 4 32 responsible for enforcing this chapter. The department shall 4 33 notify the attorney general if the department has reason to 4 34 believe a violation of section 172C.3 has occurred. 4 35 2. The attorney general shall institute legal action to 5 1 enforce the provisions of this chapter, including by seeking 5 2 any of the following: 5 3 a. The assessment and collection of civil penalties 5 4 pursuant to this section. 5 5 b. Injunctions brought on behalf of the state to require 5 6 compliance with this chapter. 5 7 Sec. 8. Section 455J.2, subsection 2, Code 1999, is 5 8 amended to read as follows: 5 9 2. The fund consists of moneys from indemnity fees 5 10 remitted by permittees to the department as provided in 5 11 section 455J.3; moneys from indemnity fees remitted by persons 5 12 required to submit manure management plans to the department 5 13 pursuant to section 455J.4; sums collected on behalf of the 5 14 fund by the department through legal action or settlement; 5 15 moneys required to be repaid to the department by a county 5 16 pursuant to this chapter; civil penalties assessed and 5 17 collected by the department or the attorney general pursuant 5 18 to chapter 455B, against animal feeding operations; moneys 5 19 paid as a settlement involving an enforcement action for a 5 20 civil penalty subject to assessment and collection against 5 21 permittees by the department or the attorney general pursuant 5 22 to chapter 455B; moneys deposited by the secretary of state 5 23 from reporting fees as provided in section 172C.4; interest, 5 24 property, and securities acquired through the use of moneys in 5 25 the fund; or moneys contributed to the fund from other 5 26 sources. 5 27 Sec. 9. Section 714.8, Code 1999, is amended by adding the 5 28 following new subsection: 5 29 NEW SUBSECTION. 17. A livestock contractor who includes a 5 30 confidentiality provision in a production contract in 5 31 violation of section 172C.2. 5 32 EXPLANATION 5 33 This bill creates a new Code chapter regulating livestock 5 34 contracts, including contracts for the production or marketing 5 35 of livestock. 6 1 The bill provides that any provision of a livestock 6 2 contract that requires the contract information to be 6 3 confidential is void. 6 4 The bill requires that the secretary of state, in 6 5 cooperation with the attorney general, establish a system for 6 6 the submission to the secretary of state of contract 6 7 information contained in livestock contracts executed by 6 8 livestock producers and livestock contractors. The bill 6 9 provides that the secretary of state may require that the 6 10 contract information be submitted in an electronic format. 6 11 The bill provides that the secretary of state, in cooperation 6 12 with the attorney general, may designate some contract 6 13 information as confidential records. 6 14 The bill establishes a number of exceptions if authorized 6 15 by the secretary of state, including exceptions based on the 6 16 amount of consideration paid under the contract, the 6 17 relationship of the parties, any legal interest in the land 6 18 owned by the livestock contractor, and whether the contract 6 19 price is reported to the United States department of 6 20 agriculture. 6 21 The bill provides that the attorney general has access to 6 22 all contract information. The attorney general may provide an 6 23 analysis of contract information in order to assist livestock 6 24 producers who are negotiating contracts with livestock 6 25 contractors. The bill provides that the attorney general 6 26 shall assist the general assembly in studying livestock 6 27 marketing practices. 6 28 The bill provides that a livestock contractor required to 6 29 submit contract information to the secretary of state must 6 30 submit a fee to the secretary of state, based on the number of 6 31 head of livestock reported. The bill provides that at the 6 32 close of each fiscal year, remaining moneys collected in fees 6 33 must be deposited in the manure storage indemnity fund. 6 34 A livestock contractor is subject to a civil penalty of up 6 35 to $1,000 for each day that the livestock contractor fails to 7 1 submit contract information as required. The attorney general 7 2 is charged to prosecute cases and seek injunctive relief in 7 3 enforcing the bill's provisions. 7 4 LSB 2673HH 78 7 5 da/jw/5
Text: HF00596 Text: HF00598 Text: HF00500 - HF00599 Text: HF Index Bills and Amendments: General Index Bill History: General Index
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