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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