Text: HSB00726                          Text: HSB00728
Text: HSB00700 - HSB00799               Text: HSB Index
Bills and Amendments: General Index     Bill History: General Index



House Study Bill 727

Bill Text

PAG LIN
  1  1    Section 1.  Section 654A.6, subsection 1, Code 1999, is
  1  2 amended to read as follows:
  1  3    1.  a.  A creditor subject to this chapter desiring to
  1  4 initiate a proceeding to enforce a debt against agricultural
  1  5 property which is real estate under chapter 654, to forfeit a
  1  6 contract to purchase agricultural property under chapter 656,
  1  7 to enforce a secured interest in agricultural property under
  1  8 chapter 554, or to otherwise garnish, levy on, execute on,
  1  9 seize, or attach agricultural property, shall file a request
  1 10 for mediation with the farm mediation service.  The creditor
  1 11 shall not begin the proceeding subject to this chapter until
  1 12 the creditor receives a mediation release, or until the court
  1 13 determines after notice and hearing that the time delay
  1 14 required for the mediation would cause the creditor to suffer
  1 15 irreparable harm.  Title to land that is agricultural property
  1 16 is not affected by the failure of any creditor to receive a
  1 17 mediation release regardless of its validity.  The time period
  1 18 for the notice of right to cure provided in section 654.2A
  1 19 shall run concurrently with the time period for the mediation
  1 20 period provided in this section and section 654A.10.
  1 21    b.  The requirements of paragraph "a" are jurisdictional
  1 22 prerequisites to a creditor filing a civil action that
  1 23 initiates a proceeding subject to this chapter.
  1 24    Sec. 2.  Section 654B.3, subsection 1, Code 1999, is
  1 25 amended to read as follows:
  1 26    1.  a.  A person who is a farm resident, or other party,
  1 27 desiring to initiate a civil proceeding to resolve a dispute,
  1 28 shall file a request for mediation with the farm mediation
  1 29 service.  The person shall not begin the proceeding until the
  1 30 person receives a mediation release, or until the court
  1 31 determines after notice and hearing that one of the following
  1 32 applies:
  1 33    a. (1)  The time delay required for the mediation would
  1 34 cause the person to suffer irreparable harm.
  1 35    b. (2)  The dispute involves a claim which has been brought
  2  1 as a class action.
  2  2    b.  The requirements of paragraph "a" are jurisdictional
  2  3 prerequisites to a creditor filing a civil action that
  2  4 initiates a civil proceeding to resolve a dispute subject to
  2  5 this chapter.  
  2  6                           EXPLANATION
  2  7    This bill amends the mandatory mediation provisions of two
  2  8 Code sections relating to resolution of farm disputes.  The
  2  9 bill specifies that the mediation requirements in Code
  2 10 sections 654A.6 and 654B.3 are jurisdictional prerequisites
  2 11 that must be satisfied before a case can be filed under those
  2 12 chapters.  A 1999 federal district court ruling held that the
  2 13 current Code language did not prevent the filing of a suit
  2 14 under chapter 654B prior to mediation of the dispute.  
  2 15 LSB 6836HC 78
  2 16 jj/cf/24
     

Text: HSB00726                          Text: HSB00728
Text: HSB00700 - HSB00799               Text: HSB Index
Bills and Amendments: General Index     Bill History: General Index

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