Text: HF00724 Text: HF00726 Text: HF00700 - HF00799 Text: HF Index Bills and Amendments: General Index Bill History: General Index
PAG LIN
1 1 Section 1. NEW SECTION. 497.36 PROCEDURE FOR CONTRACTING
1 2 FOR THE CARE AND FEEDING OF SWINE – REVERSE REFERENDUM –
1 3 DISSENT.
1 4 A cooperative association shall not contract for the care
1 5 and feeding of swine, unless the cooperative association
1 6 complies with the requirements established for cooperative
1 7 associations in section 499.81.
1 8 Sec. 2. NEW SECTION. 498.38 PROCEDURE FOR CONTRACTING
1 9 FOR THE CARE AND FEEDING OF SWINE – REVERSE REFERENDUM –
1 10 DISSENT.
1 11 A cooperative association shall not contract for the care
1 12 and feeding of swine, unless the cooperative association
1 13 complies with the requirements established for cooperative
1 14 associations in section 499.81.
1 15 Sec. 3. NEW SECTION. 499.81 PROCEDURE FOR CONTRACTING
1 16 FOR THE CARE AND FEEDING OF SWINE – REVERSE REFERENDUM –
1 17 DISSENT.
1 18 A cooperative association shall not contract for the care
1 19 and feeding of swine, unless all of the following apply:
1 20 1. The board of directors of the cooperative association
1 21 adopts a resolution authorizing contracting. Except as
1 22 otherwise provided in this section, the resolution shall
1 23 become effective thirty-one days from the date that the
1 24 resolution was adopted. The cooperative association is not
1 25 required to comply with the procedures of this section for as
1 26 long as the resolution remains in effect. The resolution
1 27 shall contain all of the following:
1 28 a. A declaration stating that the cooperative association
1 29 reserves the right to contract for the care and feeding of
1 30 swine as described in section 654B.1, subsection 1.
1 31 b. A description of contracts planned by the cooperative
1 32 association, if any, including a description of the following:
1 33 (1) Contracts planned to be executed with members,
1 34 including the terms of the contracts and the number of
1 35 contracts to be executed.
2 1 (2) Contracts planned to be executed with any other
2 2 association organized on a cooperative basis, including the
2 3 name of the association and the terms of the contract.
2 4 c. The date that the resolution was adopted and the date
2 5 that it will take effect.
2 6 2. Within five days following the date that the resolution
2 7 authorizing the cooperative association to contract is
2 8 adopted, the cooperative association must provide notice of
2 9 the resolution as provided in this section.
2 10 a. The notice shall be in the following form:
2 11 NOTICE
2 12 MEMBERS OF THE (INSERT
2 13 NAME OF THE COOPERATIVE ASSOCIATION)
2 14 THE (INSERT NAME OF THE COOPERATIVE ASSOCIATION) IS
2 15 PLANNING ON EXECUTING CONTRACTS FOR THE CARE AND FEEDING OF
2 16 SWINE AS DESCRIBED IN IOWA CODE SECTION 654B.1, SUBSECTION 1.
2 17 (INSERT NAME OF THE COOPERATIVE ASSOCIATION) HAS PASSED A
2 18 RESOLUTION AUTHORIZING CONTRACTING. WITHIN A LIMITED TIME
2 19 PERIOD: (1) VOTING MEMBERS MAY PETITION THE COOPERATIVE
2 20 ASSOCIATION TO REQUIRE A MEMBERSHIP VOTE TO APPROVE THE
2 21 RESOLUTION; AND (2) EACH DISSENTING MEMBER MAY DEMAND PAYMENT
2 22 OF THAT DISSENTING MEMBER'S SHARE OF NET EARNINGS ALLOCABLE
2 23 PURSUANT TO IOWA CODE SECTION 499.81.
2 24 b. The notice must be published in a newspaper having a
2 25 general circulation in the county where the cooperative
2 26 association is located as provided in section 618.3. The
2 27 notice shall be printed as provided in section 618.17.
2 28 c. The notice shall be delivered to all holders of
2 29 members' equity in the cooperative association, including
2 30 members and shareholders, by mailing the notice to the
2 31 holder's last known address as shown on the books of the
2 32 cooperative association. The notice shall be accompanied by a
2 33 copy of the resolution adopted by the board pursuant to this
2 34 section, and a copy of this section.
2 35 3. Within thirty days following the date that the
3 1 resolution authorizing the association to contract for the
3 2 care and feeding of swine is adopted, at least twenty percent
3 3 of the voting members of the cooperative association may file
3 4 a petition with the board of directors demanding a referendum
3 5 under this subsection.
3 6 a. If a valid petition is filed, the board of directors
3 7 shall call a special referendum of voting members at a regular
3 8 or special meeting, as provided in section 499.27. The filing
3 9 of the petition suspends the effectiveness of the resolution
3 10 until a referendum is conducted as provided in this
3 11 subsection.
3 12 b. The resolution shall not become effective until the
3 13 resolution is approved by an affirmative vote of a majority of
3 14 the voting members of the cooperative association casting
3 15 ballots at the meeting to conduct the referendum.
3 16 4. a. Within thirty days following the date that the
3 17 resolution authorizing the cooperative association to contract
3 18 for the care and feeding of swine is adopted, a holder of
3 19 members' equity, including a member or shareholder, may
3 20 dissent to a contract as expressed in the resolution adopted
3 21 by the board of directors under this section.
3 22 b. The member shall dissent by filing a demand with the
3 23 board of directors. The cooperative association shall pay
3 24 each dissenting member's share of net earnings allocable
3 25 pursuant to section 499.30. The cooperative association shall
3 26 pay net earnings for each taxable year in which the resolution
3 27 authorizing contracting remains in effect, beginning in the
3 28 taxable year preceding the taxable year that the resolution is
3 29 adopted.
3 30 c. The cooperative association is not required to pay
3 31 dissenting members pursuant to this subsection, if the
3 32 resolution provided for in this section does not become
3 33 effective.
3 34 5. If an association that is not organized under the laws
3 35 of this state contracts with the cooperative association to
4 1 contract for the care and feeding of swine, the nonstate
4 2 association shall reimburse the cooperative association any
4 3 amount paid by the cooperative association to the dissenting
4 4 member.
4 5 Sec. 4. EXISTING CONTRACTS – APPLICABILITY. This Act
4 6 shall not apply to contracts executed prior to the effective
4 7 date of this Act by a cooperative association organized under
4 8 chapter 497, 498, or 499. However, a cooperative association
4 9 shall not execute a new contract or extend or renew a contract
4 10 executed prior to the effective date of this Act unless the
4 11 cooperative association complies with the requirements of this
4 12 Act.
4 13 Sec. 5. EFFECTIVE DATE. This Act, being deemed of
4 14 immediate importance, takes effect upon enactment.
4 15 EXPLANATION
4 16 Generally, this bill provides that a cooperative
4 17 association organized under state law is prohibited from
4 18 contracting for the care and feeding of swine, unless the
4 19 cooperative association adopts a resolution authorizing
4 20 contracting. The bill provides that the resolution does not
4 21 become effective until members of the cooperative association
4 22 have an opportunity to bring a petition to vote on the
4 23 resolution. The bill provides for notice to the membership.
4 24 The bill provides that if a petition is brought, the
4 25 resolution must be approved by a majority vote of the voting
4 26 members of the association casting ballots. The bill also
4 27 provides that the holders of members' equity may dissent by
4 28 filing a dissent with the board of directors for the
4 29 dissenting member's share of net earnings for each taxable
4 30 year in which the resolution authorizing contracting remains
4 31 in effect, beginning in the taxable year preceding the taxable
4 32 year that the resolution is adopted. If an association that
4 33 is not organized under the laws of this state contracts with
4 34 the cooperative association to contract for the care and
4 35 feeding of swine, the nonstate association must reimburse the
5 1 cooperative association any amount paid by the cooperative
5 2 association to the dissenting member.
5 3 The bill takes effect upon enactment.
5 4 LSB 2308YH 78
5 5 da/gg/8
Text: HF00724 Text: HF00726 Text: HF00700 - HF00799 Text: HF Index Bills and Amendments: General Index Bill History: General Index
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