Text: HF02490                           Text: HF02492
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House File 2491

Partial Bill History

Bill Text

PAG LIN
  1  1                                          HOUSE FILE 2491
  1  2 
  1  3                             AN ACT
  1  4 PROVIDING FOR THE PRODUCTION OF LIFE SCIENCE PRODUCTS, AND
  1  5    PROVIDING FOR PENALTIES AND 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 10B.4, subsection 2, Code 1999, is
  1 10 amended by adding the following new paragraph:
  1 11    NEW PARAGRAPH.  g.  If the reporting entity is a life
  1 12 science enterprise, as provided in chapter 10C, as that
  1 13 chapter exists on or before June 30, 2004, the total amount of
  1 14 commercial sale of life science products and products other
  1 15 than life science products which are produced from the
  1 16 agricultural land held by the life science enterprise.
  1 17    Sec. 2.  NEW SECTION.  10C.1  DEFINITIONS.
  1 18    1.  "Actively engaged in farming" means the same as defined
  1 19 in section 10.1.
  1 20    2.  "Agricultural commodity" means the same as defined in
  1 21 section 190C.1.
  1 22    3.  "Agricultural land" means land suitable for use in
  1 23 farming as defined in section 9H.1.
  1 24    4.  "Animal" means a creature belonging to the bovine,
  1 25 caprine, equine, ovine, or porcine species.
  1 26    5.  "Corporation" means a domestic or foreign corporation
  1 27 subject to chapter 490, a nonprofit corporation, or a
  1 28 cooperative.
  1 29    6.  "Economic development board" or "board" means the
  1 30 economic development board created pursuant to section 15.103.
  1 31    7.  "Family farm entity" means the same as defined in
  1 32 section 10.1.
  1 33    8.  "Life science by-product" means a commodity, other than
  1 34 a life science product, if the commodity derives from the
  1 35 production of a life science product and the commodity is not
  2  1 intended or used for human consumption.
  2  2    9.  "Life science enterprise" or "enterprise" means a
  2  3 corporation or limited liability company organized for the
  2  4 purpose of using biotechnological systems or techniques for
  2  5 the production of life science products.
  2  6    10.  "Life science product" or "product" means a product
  2  7 derived from an animal by using biotechnological systems or
  2  8 techniques and which includes only the following:
  2  9    a.  Embryos or oocytes for use in animal implantation.
  2 10    b.  Blood, milk, or urine for use in the manufacture of
  2 11 pharmaceuticals or nutriceuticals.
  2 12    c.  Cells, tissue, or organs for use in animal or human
  2 13 transplantation.
  2 14    11.  "Limited liability company" means a limited liability
  2 15 company as defined in section 490A.102.
  2 16    Sec. 3.  NEW SECTION.  10C.2  PURPOSE.
  2 17    The purpose of this chapter is to promote economic growth
  2 18 in this state during this period of revolutionary
  2 19 technological advancement in animal and human health sciences,
  2 20 by providing for the development of industries unrelated to
  2 21 traditional farming, but devoted to the production of life
  2 22 science products derived from animals.
  2 23    Sec. 4.  NEW SECTION.  10C.3  ENTERPRISES ENGAGED IN THE
  2 24 CREATION AND DEVELOPMENT OF LIFE SCIENCE PRODUCTS –
  2 25 PROHIBITION AND EXCEPTIONS.
  2 26    Notwithstanding any other provision of law, a life science
  2 27 enterprise may acquire or hold an ownership or leasehold
  2 28 interest in agricultural land, if the economic development
  2 29 board approves a life science enterprise plan as provided in
  2 30 section 15.104.  A life science enterprise must acquire or
  2 31 hold the agricultural land pursuant to the plan which may be
  2 32 amended as provided by the board.  However, the life science
  2 33 enterprise shall not hold a total of more than three hundred
  2 34 twenty acres of agricultural land.  The life science
  2 35 enterprise shall hold the land only for purposes of producing
  3  1 life science products according to the life science enterprise
  3  2 plan.  In addition, the life science enterprise shall not
  3  3 acquire or hold agricultural land, if the life science
  3  4 enterprise receives any form of financing from an Iowa
  3  5 agricultural industry finance corporation as provided in
  3  6 chapter 15E.  A life science enterprise that complies with
  3  7 this section may hold the interest in the agricultural land,
  3  8 as provided in the plan, for as long as commercial sales of
  3  9 products produced from the agricultural land are subject to
  3 10 the following:
  3 11    1.  The sale of life science products.
  3 12    2.  The sale of cull livestock kept on the agricultural
  3 13 land, surplus commodities produced as feed for livestock kept
  3 14 on the agricultural land, or life science by-products.
  3 15    Sec. 5.  NEW SECTION.  10C.4  ENFORCEMENT – PENALTIES.
  3 16    1.  The office of attorney general or a county attorney
  3 17 shall enforce the provisions of this chapter.
  3 18    2.  A life science enterprise violating this chapter shall
  3 19 be assessed a civil penalty of not more than twenty-five
  3 20 thousand dollars.  Each day that a violation exists shall
  3 21 constitute a separate offense.  In addition, the life science
  3 22 enterprise shall divest itself of any land held in violation
  3 23 of this chapter within one year after judgment.  The court may
  3 24 determine the method of divesting an interest held by a life
  3 25 science enterprise found to be in violation of this chapter.
  3 26 A financial gain realized by the enterprise which disposes of
  3 27 an interest held in violation of this chapter shall be
  3 28 forfeited to the general fund of the state.  All court costs
  3 29 and fees shall be paid by the enterprise holding the interest
  3 30 in violation of this chapter.
  3 31    3.  The courts of this state may prevent and restrain
  3 32 violations of this chapter through the issuance of an
  3 33 injunction.  The attorney general or a county attorney shall
  3 34 institute suits on behalf of the state to prevent and restrain
  3 35 violations of this chapter.
  4  1    Sec. 6.  NEW SECTION.  10C.5  REPEAL.
  4  2    Sections 10C.1 through 10C.4 and this section are repealed
  4  3 July 1, 2004.
  4  4    Sec. 7.  NEW SECTION.  10C.6  EXISTING LIFE SCIENCE
  4  5 ENTERPRISES.
  4  6    This section applies on and after July 1, 2004.
  4  7    1.  a.  A life science enterprise may acquire or hold
  4  8 agricultural land, notwithstanding section 10C.5 as that
  4  9 section exists in the 2003 Code or 2003 Code Supplement, if
  4 10 all of the following applies:
  4 11    (1)  The life science enterprise acquires the agricultural
  4 12 land on or before June 30, 2004.
  4 13    (2)  The enterprise acquires or holds the agricultural land
  4 14 pursuant to chapter 10C as that chapter exists in the 2003
  4 15 Code or 2003 Code Supplement.
  4 16    (3)  The economic development board has approved a life
  4 17 science enterprise plan filed on or before June 30, 2004, with
  4 18 the board.  The enterprise must acquire or hold the
  4 19 agricultural land pursuant to the plan which may be amended at
  4 20 any time and approved by the board pursuant to section 15.104.
  4 21    b.  The life science enterprise must file a report with the
  4 22 secretary of state as provided in section 10B.4.
  4 23    2.  A person who is a successor in interest to a life
  4 24 science enterprise may acquire or hold agricultural land,
  4 25 notwithstanding section 10C.5 as that section exists in the
  4 26 2003 Code or 2003 Code Supplement, if all of the following
  4 27 applies:
  4 28    a.  The person meets the qualifications of a life science
  4 29 enterprise and acquires or holds the agricultural land as
  4 30 provided in chapter 10C as that chapter exists in the 2003
  4 31 Code or 2003 Code Supplement.
  4 32    b.  The person acquires or holds the agricultural land
  4 33 according to the life science enterprise plan filed by the
  4 34 person's predecessor in interest and approved by the economic
  4 35 development board.  The plan may be amended at any time and
  5  1 approved by the board pursuant to section 15.104.
  5  2    c.  The person has filed a notice with the economic
  5  3 development board as required by the board.  The notice shall
  5  4 state that the person is a successor in interest.  The notice
  5  5 must be filed with the board within thirty days following the
  5  6 person's acquisition of the interest.
  5  7    d.  The person must file a report as a life science
  5  8 enterprise with the secretary of state as provided in section
  5  9 10B.4.
  5 10    Sec. 8.  Section 15.104, Code 1999, is amended by adding
  5 11 the following new subsection:
  5 12    NEW SUBSECTION.  4A.  Review and approve or disapprove a
  5 13 life science enterprise plan or amendments to that plan as
  5 14 provided in chapter 10C as that chapter exists on or before
  5 15 June 30, 2004, and according to rules adopted by the board.  A
  5 16 life science plan shall make a reasonable effort to provide
  5 17 for participation by persons who are individuals or family
  5 18 farm entities actively engaged in farming as defined in
  5 19 section 10.1.  The persons may participate in the life science
  5 20 enterprise by holding an equity position in the life science
  5 21 enterprise or providing goods or service to the enterprise
  5 22 under contract.  The plan must be filed with the board not
  5 23 later than June 30, 2004.  The life science enterprise may
  5 24 file an amendment to a plan at any time.  A life science
  5 25 enterprise is not eligible to file a plan, unless the life
  5 26 science enterprise files a notice with the board.  The notice
  5 27 shall be a simple statement indicating that the life science
  5 28 enterprise may file a plan as provided in this section.  The
  5 29 notice must be filed with the board not later than June 30,
  5 30 2001.  The notice, plan, or amendments shall be submitted by a
  5 31 life science enterprise as provided by the board.  The board
  5 32 shall consult with the department of agriculture and land
  5 33 stewardship during its review of a life science plan or
  5 34 amendments to that plan.  The plan shall include information
  5 35 regarding the life science enterprise as required by rules
  6  1 adopted by the board, including but not limited to all of the
  6  2 following:
  6  3    a.  A description of life science products to be developed
  6  4 by the enterprise.
  6  5    b.  The time frame required by the enterprise to develop
  6  6 the life science products.
  6  7    c.  The amount of capital investment required by the
  6  8 enterprise to develop the life science products.
  6  9    d.  The number of acres of land required to produce the
  6 10 life science products.
  6 11    e.  The type and extent of participation in the life
  6 12 science enterprise by persons who are individuals or family
  6 13 farm entities.  If the plan does not provide for participation
  6 14 or minimal participation, the plan shall include a detailed
  6 15 explanation of the reasonable effort made by the life science
  6 16 enterprise to provide for participation.
  6 17    Sec. 9.  DIRECTIONS TO CODE EDITOR.  The Code editor may
  6 18 transfer section 10C.6 to another chapter in the 2005 Code,
  6 19 and correct internal references as necessary in order to
  6 20 enhance the readability of the Code.
  6 21    Sec. 10.  EFFECTIVE DATE.  This Act, being deemed of
  6 22 immediate importance, takes effect upon enactment.  
  6 23 
  6 24 
  6 25                                                             
  6 26                               BRENT SIEGRIST
  6 27                               Speaker of the House
  6 28 
  6 29 
  6 30                                                             
  6 31                               MARY E. KRAMER
  6 32                               President of the Senate
  6 33 
  6 34    I hereby certify that this bill originated in the House and
  6 35 is known as House File 2491, Seventy-eighth General Assembly.
  7  1 
  7  2 
  7  3                                                             
  7  4                               ELIZABETH ISAACSON
  7  5                               Chief Clerk of the House
  7  6 Approved                , 2000
  7  7 
  7  8 
  7  9                            
  7 10 THOMAS J. VILSACK
  7 11 Governor
     

Text: HF02490                           Text: HF02492
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Bills and Amendments: General Index     Bill History: General Index

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