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House File 725

Partial Bill History

Bill Text

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
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