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House Study Bill 739

Bill Text

PAG LIN
  1  1    Section 1.  Section 10B.4, subsection 2, Code 1999, is
  1  2 amended by adding the following new paragraph:
  1  3    NEW PARAGRAPH.  g.  If the reporting entity is a life
  1  4 science enterprise, as provided in chapter 10C, the total
  1  5 amount of commercial sales of life science products and
  1  6 incidental sales associated with raising animals.
  1  7    Sec. 2.  NEW SECTION.  10C.1  DEFINITIONS.
  1  8    1.  "Agricultural commodity" means the same as defined in
  1  9 section 190C.1.
  1 10    2.  "Agricultural land" means land suitable for use in
  1 11 farming as defined in section 9H.1.
  1 12    3.  "Animal" means a creature belonging to the bovine,
  1 13 caprine, equine, ovine, or porcine species; ostriches, rheas,
  1 14 or emus; farm deer as defined in section 481A.1; or poultry.
  1 15    4.  "Corporation" means a domestic or foreign corporation
  1 16 subject to chapter 490, a nonprofit corporation, or a
  1 17 cooperative.
  1 18    5.  "Crop" means a plant used for food, animal feed, fiber,
  1 19 or oil, including but not limited to a plant classified as a
  1 20 forage or cereal plant.
  1 21    6.  "Life science enterprise" or "enterprise" means a
  1 22 corporation or limited liability company organized for the
  1 23 purpose of using biotechnological systems or techniques for
  1 24 the production of life science products.
  1 25    7.  "Life science product" or "product" means a product
  1 26 derived from an animal by using biotechnological systems or
  1 27 techniques and which included only the following:
  1 28    a.  Embryos or oocytes for use in implantation.
  1 29    b.  Blood, milk, or urine for use in the manufacture of
  1 30 pharmaceuticals or nutriceuticals.
  1 31    c.  Cells, tissue, or organs for use in transplantation.
  1 32    8.  "Limited liability company" means a limited liability
  1 33 company as defined in section 490A.102.
  1 34    Sec. 3.  NEW SECTION.  10C.2  PURPOSE.
  1 35    The purpose of this chapter is to promote economic growth
  2  1 in this state during this period of revolutionary
  2  2 technological advancement in animal and human health sciences,
  2  3 by providing for the development of industries unrelated to
  2  4 traditional farming, but devoted to the production of life
  2  5 science products derived from animals.
  2  6    Sec. 4.  NEW SECTION.  10C.3  ENTERPRISES ENGAGED IN THE
  2  7 CREATION AND DEVELOPMENT OF LIFE SCIENCE PRODUCTS –
  2  8 PROHIBITION AND EXCEPTIONS.
  2  9    Except as otherwise provided in this section, a life
  2 10 science enterprise shall not hold an interest in agricultural
  2 11 land as provided in section 9H.4.  However, this section or
  2 12 section 9H.4 shall not preclude such an enterprise from
  2 13 holding an interest in land if all of the following apply:
  2 14    1.  The land is used for the purpose of producing life
  2 15 science products.
  2 16    2.  The land is not used to produce agricultural
  2 17 commodities, including crops, for any purpose except for crops
  2 18 used to feed animals raised on the land for the purpose of
  2 19 producing a life science product or incidental sales of
  2 20 animals, including culls, which are raised for the purpose of
  2 21 producing a life science product.
  2 22    3.  The life science enterprise does not hold a total of
  2 23 more than one thousand five hundred acres of agricultural land
  2 24 for use in producing life science products as provided in this
  2 25 section.  The enterprise may hold an ownership or leasehold
  2 26 interest in the land.
  2 27    Sec. 5.  NEW SECTION.  10C.4  ENFORCEMENT – PENALTIES.
  2 28    1.  The office of attorney general or a county attorney
  2 29 shall enforce the provisions of this chapter.
  2 30    2.  A life science enterprise violating this chapter shall
  2 31 be assessed a civil penalty of not more than twenty-five
  2 32 thousand dollars and shall divest itself of any land held in
  2 33 violation of this section within one year after judgment.  The
  2 34 court may determine the method of divesting an interest held
  2 35 by a life science enterprise found to be in violation of this
  3  1 chapter.  A financial gain realized by the enterprise which
  3  2 disposes of an interest held in violation of this chapter
  3  3 shall be forfeited to the general fund of the state.  All
  3  4 court costs and fees shall be paid by the enterprise holding
  3  5 the interest in violation of this chapter.
  3  6    3.  The courts of this state may prevent and restrain
  3  7 violations of this chapter through the issuance of an
  3  8 injunction.  The attorney general or a county attorney shall
  3  9 institute suits on behalf of the state to prevent and restrain
  3 10 violations of this chapter.  
  3 11                           EXPLANATION
  3 12    This bill creates new Code chapter 10C.  According to the
  3 13 bill, the purpose of the new Code chapter is to promote
  3 14 economic growth in this state by providing for the development
  3 15 of industries unrelated to traditional farming, but devoted to
  3 16 the production of life science products derived from animals.
  3 17 The bill provides that a life science product is a product
  3 18 derived from an animal which includes only embryos or oocytes
  3 19 for use in implantation; blood, milk, or urine for use in the
  3 20 manufacture of pharmaceuticals or nutriceuticals; or cells,
  3 21 tissue, or organs for use in transplantation.
  3 22    The bill provides that a life science enterprise is
  3 23 prohibited from holding an interest in agricultural land as
  3 24 provided in Code chapter 9H, unless the land is used for the
  3 25 purpose of producing life science products; the land is not
  3 26 used to produce agricultural commodities, including crops, for
  3 27 any purpose except for crops used to feed animals on the land
  3 28 or incidental sales of animals; and the enterprise does not
  3 29 hold a total of more than 1,500 acres of agricultural land.
  3 30    The bill provides that the office of attorney general or a
  3 31 county attorney shall enforce the provisions of the new Code
  3 32 chapter.  The bill provides that an enterprise violating
  3 33 provisions of the Code chapter shall be assessed a civil
  3 34 penalty of not more than $25,000 and shall divest itself of
  3 35 any land held in violation of the 1,500-acre limit.  The bill
  4  1 provides that a court may grant an injunction in order to
  4  2 restrain violations of the bill's provisions.
  4  3    The bill also amends Code chapter 10B, which provides for
  4  4 reporting of agricultural land holdings.  The bill provides
  4  5 that along with other information required to be reported, an
  4  6 enterprise must report the total amount of commercial sales of
  4  7 life science products and incidental sales associated with
  4  8 raising animals.  A person failing to report as required under
  4  9 that chapter is subject to a civil penalty of $1,000.  
  4 10 LSB 6843YC 78
  4 11 da/cf/24
     

Text: HSB00738                          Text: HSB00740
Text: HSB00700 - HSB00799               Text: HSB Index
Bills and Amendments: General Index     Bill History: General Index

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