Text: S03165 Text: S03167 Text: S03100 - S03199 Text: S Index Bills and Amendments: General Index Bill History: General Index
PAG LIN 1 1 Amend Senate File 443 as follows: 1 2 #1. By striking everything after the enacting 1 3 clause, and inserting the following: 1 4 "Section 1. NEW SECTION. 172C.1 DEFINITIONS. 1 5 As used in this chapter, unless the context 1 6 otherwise requires: 1 7 1. "Contract livestock facility" means an animal 1 8 feeding operation as defined in section 455B.161, 1 9 where livestock owned by a contractor is produced by a 1 10 contract producer who owns the animal feeding 1 11 operation. "Contract livestock facility" includes a 1 12 confinement feeding operation as defined in section 1 13 455B.161. However, a contract livestock facility does 1 14 not include a custom cattle feedlot as defined in 1 15 section 579A.1. 1 16 2. "Contract producer" means the owner of a 1 17 contract livestock facility who is paid by a 1 18 contractor for producing livestock owned by the 1 19 contractor at the contract livestock facility. 1 20 3. "Contractor" means a person who owns livestock 1 21 and pays a contract producer for producing the 1 22 livestock at a contract livestock facility owned by 1 23 the contract producer. 1 24 4. "Livestock" means beef cattle, dairy cattle, 1 25 sheep, or swine. 1 26 5. "Processor" means a person engaged in the 1 27 business of manufacturing goods from livestock, 1 28 including a person who is required to be licensed as a 1 29 dealer or broker as provided in chapter 172A. 1 30 6. "Produce" means to provide feed or services 1 31 relating to the care and feeding of livestock. If the 1 32 livestock is dairy cattle, "produce" includes milking 1 33 the dairy cattle. 1 34 7. "Production contract" means an oral or written 1 35 agreement executed by a contract producer and a 1 36 contractor who provides that a contract producer is to 1 37 receive payment for producing livestock owned by the 1 38 contractor at the contract producer's contract 1 39 livestock facility. 1 40 Sec. 2. NEW SECTION. 172C.2 PRODUCTION CONTRACTS 1 41 CONFIDENTIALITY PROHIBITED. 1 42 A provision which is part of a production contract 1 43 is void, if the provision states that information 1 44 contained in the production contract is confidential. 1 45 The provision is void regardless of whether the 1 46 confidentiality provision is express or implied; oral 1 47 or written; required or conditional; contained in the 1 48 production contract, another production contract, or 1 49 in a related document, policy, or agreement. This 1 50 section does not affect other provisions of a 2 1 production contract or a related document, policy, or 2 2 agreement which can be given effect without the voided 2 3 provision. This section does not require either party 2 4 to a production contract to divulge the information in 2 5 the production contract to another person. 2 6 Sec. 3. NEW SECTION. 172C.3 PRODUCTION CONTRACTS 2 7 REQUIRED TO BE FILED. 2 8 1. As used in this section, all of the following 2 9 apply: 2 10 a. A production contract is advertised if it is 2 11 presented or delivered to a contract producer, 2 12 regardless of whether it is part of an offer. A 2 13 production contract is executed if it is signed by the 2 14 contractor and contract producer or authorized 2 15 representatives and is still in force. 2 16 b. A production contract is advertised or executed 2 17 regardless of whether it is a new production contract 2 18 or the renewal or extension of a previous production 2 19 contract. 2 20 2. On or before March 31 of each year, a 2 21 contractor shall file with the secretary of state 2 22 types of production contracts that are advertised or 2 23 executed by the contractor. The production contracts 2 24 filed with the secretary of state shall not include 2 25 the printed name or signature of a contract producer. 2 26 A contractor shall not advertise or execute a 2 27 production contract, unless the contractor files that 2 28 type of production contract with the secretary of 2 29 state. 2 30 3. The secretary of state in consultation with the 2 31 attorney general shall adopt rules which provide for 2 32 all of the following: 2 33 a. Criteria for distinguishing types of production 2 34 contracts. The rules shall categorize the types of 2 35 production contracts that must be submitted to the 2 36 secretary of state under this section. 2 37 b. The manner in which a contractor must file 2 38 types of production contracts. The secretary of state 2 39 may require that the types of production contracts be 2 40 filed in an electronic format. 2 41 c. Exceptions to the filing requirement as 2 42 provided in this section. The secretary of state may 2 43 create an exception because of any of the following: 2 44 (1) The consideration owed by the contractor under 2 45 all production contracts executed by the contractor 2 46 and a contract producer is minimal. 2 47 (2) There is a family relationship between the 2 48 contractor and the contract producer. 2 49 (3) The contractor and the contract producer are 2 50 part of the same family farm entity or networking 3 1 farmers entity as defined in section 10.1. 3 2 (4) The livestock is purchased for a purpose other 3 3 than for use by a processor. 3 4 4. The attorney general may provide an analysis of 3 5 filed production contracts in order to assist contract 3 6 producers in negotiating production contracts. 3 7 However, the secretary of state, in consultation with 3 8 the attorney general, may designate some information 3 9 contained in a production contract as confidential, if 3 10 such information is a confidential record under 3 11 section 22.7. 3 12 Sec. 4. NEW SECTION. 172C.4 ENFORCEMENT. 3 13 1. The attorney general's office is the primary 3 14 agency responsible for enforcing this chapter. The 3 15 secretary of state shall notify the attorney general's 3 16 office if the secretary of state has reason to believe 3 17 that a violation of section 172C.3 has occurred. 3 18 2. In enforcing the provisions of this chapter, 3 19 the attorney general may do all of the following: 3 20 a. Apply to the district court for an injunction 3 21 to do any of the following: 3 22 (1) Restrain a contractor from engaging in conduct 3 23 or practices in violation of this chapter. 3 24 (2) Require a contractor to comply with a 3 25 provision of this chapter. 3 26 b. Apply to district court for the issuance of a 3 27 subpoena to obtain a production contract for purposes 3 28 of enforcing this chapter. 3 29 c. Bring an action in district court to enforce 3 30 penalties provided in section 172C.5, including the 3 31 assessment and collection of civil penalties. 3 32 Sec. 5. NEW SECTION. 172C.5 PENALTIES. 3 33 1. A contractor who includes a confidentiality 3 34 provision in a production contract in violation of 3 35 section 172C.2 is guilty of a fraudulent practice as 3 36 provided in section 714.8. 3 37 2. A contractor who fails to file a timely or 3 38 complete production contract type as required in 3 39 section 172C.3 is subject to a civil penalty not to 3 40 exceed one thousand dollars. Each contract advertised 3 41 or executed in violation of section 172C.3 constitutes 3 42 a separate offense. 3 43 Sec. 6. Section 579A.1, subsections 2, 3, and 4, 3 44 Code 1999, are amended to read as follows: 3 45 2. "Custom cattle feedlot" means a feedlot where 3 46 cattle owned by a person aresubject to care and3 47feeding performedprovided feed and care by another 3 48 person. 3 49 3. "Custom cattle feedlot operator" means the 3 50 owner of a custom cattle feedlot ora person managing4 1the custom cattle feedlot, if the person is authorized4 2by the owner to file and enforce a lien under this4 3chapterthe owner's personal representative. 4 4 4. "Feedlot" meansthe same as defined in section4 5172D.1a lot, yard, corral, building, or other area in 4 6 which cattle are confined and fed and maintained for 4 7 forty-five days or more in any twelve-month period. 4 8 Sec. 7. Section 579A.1, Code 1999, is amended by 4 9 adding the following new subsection: 4 10 NEW SUBSECTION. 4A. "Personal representative" 4 11 means a person who is authorized by the owner of a 4 12 custom cattle feedlot to act on behalf of the owner, 4 13 including by executing an agreement, managing a custom 4 14 cattle feedlot, or filing and enforcing liens under 4 15 this chapter. 4 16 Sec. 8. Section 579A.2, subsection 1, Code 1999, 4 17 is amended to read as follows: 4 18 1. A custom cattle feedlot operator shall have a 4 19 lien upon the cattle and the identifiable cash 4 20 proceeds from the sale of the cattle for the amount of 4 21 the contract price for the feed and care of the 4 22livestockcattle at the custom cattle feedlotagreed4 23uponpursuant to a written or oral agreement by the 4 24 custom cattle feedlot operator and the person who owns 4 25 the cattle, which may be enforced as provided in 4 26 section 579A.3. 4 27 Sec. 9. Section 579A.2, subsection 2, paragraph e, 4 28 Code 1999, is amended to read as follows: 4 29 e. The printed name and signature of the person 4 30 filing the form. 4 31 Sec. 10. Section 579A.2, subsection 3, Code 1999, 4 32 is amended to read as follows: 4 33 3. Except as provided in chapter 581, a lien 4 34 created under this section until preserved and a lien 4 35 preserved under this section is superior to and shall 4 36 have priority over a conflicting lien or security 4 37 interest in the cattle, including a lien or security 4 38 interest that was perfected prior to the creation of 4 39 the lien provided under this section. 4 40 Sec. 11. NEW SECTION. 579A.4 WAIVERS 4 41 UNENFORCEABLE. 4 42 A waiver of a right created by this subchapter, 4 43 including but not limited to, a waiver of the right to 4 44 file a lien pursuant to this subchapter is void and 4 45 unenforceable. 4 46 Sec. 12. NEW SECTION. 579A.5 ALTERNATE LIEN 4 47 PROCEDURE. 4 48 A person who is a custom cattle feedlot operator 4 49 may file and enforce a lien as a contract producer 4 50 under this chapter or chapter 579B, but not both. 5 1 Sec. 13. NEW SECTION. 579B.1 DEFINITIONS. 5 2 As used in this chapter, unless the context 5 3 otherwise requires: 5 4 1. "Commodity" means livestock or a crop. 5 5 2. "Contract crop field" means farmland where a 5 6 crop owned by a contractor is produced by a contract 5 7 producer. 5 8 3. "Contract livestock facility" means an animal 5 9 feeding operation as defined in section 455B.161, 5 10 where livestock owned by a contractor is produced by a 5 11 contract producer who owns the animal feeding 5 12 operation. "Contract livestock facility" includes a 5 13 confinement feeding operation as defined in section 5 14 455B.161 or a feedlot as defined in section 172D.1, 5 15 including a custom cattle feedlot. 5 16 4. "Contract operation" means a contract livestock 5 17 facility or contract crop field. 5 18 5. "Contract producer" means the owner of a 5 19 contract operation who is paid by a contractor for 5 20 producing a commodity owned by the contractor at the 5 21 contract operation. A contract producer includes a 5 22 contract producer's personal representative. 5 23 6. "Contractor" means a person who pays a contract 5 24 producer for producing a commodity at a contract 5 25 operation owned by the contract producer. 5 26 7. "Crop" means any variety of alfalfa, barley, 5 27 buckwheat, corn, flax, millet, oats, rye, sorghum, 5 28 soybeans, or wheat, forage, or silage. 5 29 8. "Farmland" means the same as defined in section 5 30 352.2. 5 31 9. "Livestock" means beef cattle, dairy cattle, 5 32 sheep, or swine. 5 33 10. "Personal representative" means a person who 5 34 is authorized by a contract producer to act on behalf 5 35 of the contract producer, including by executing an 5 36 agreement, managing a contract operation, or filing 5 37 and enforcing a lien as provided in this chapter. 5 38 11. "Processor" means a person engaged in the 5 39 business of manufacturing goods from commodities, 5 40 including a person who is required to be licensed as a 5 41 dealer or broker as provided in chapter 172A. 5 42 12. "Produce" means to do any of the following: 5 43 a. Provide feed or services relating to the care 5 44 and feeding of livestock. If the livestock is dairy 5 45 cattle, "produce" includes milking the dairy cattle. 5 46 b. Provide for planting, raising, harvesting, and 5 47 storing crop. "Produce" includes preparing the soil 5 48 for planting and nurturing the crop by the application 5 49 of fertilizers or soil conditioners as defined in 5 50 section 200.3 or pesticides as defined in section 6 1 206.2. 6 2 13. "Production contract" means an oral or written 6 3 agreement executed by a contract producer and a 6 4 contractor who provides that a contract producer is to 6 5 receive payment for producing a commodity owned by the 6 6 contractor at the contract producer's contract 6 7 operation. 6 8 Sec. 14. NEW SECTION. 579B.2 ESTABLISHMENT OF 6 9 LIEN PRIORITY. 6 10 A contract producer who is a party to a production 6 11 contract shall have a lien as provided in this 6 12 section. The amount of the lien shall be the amount 6 13 owed to the contract producer pursuant to the terms of 6 14 the production contract, which may be enforced as 6 15 provided in section 579B.3. 6 16 1. a. If the production contract is for the 6 17 production of livestock, all of the following shall 6 18 apply: 6 19 (1) The lien shall be upon all of the following: 6 20 (a) Slaughter cattle, swine, or sheep and the 6 21 identifiable cash proceeds from the sale of the swine 6 22 or sheep. 6 23 (b) Dairy cattle and the identifiable cash 6 24 proceeds from the sale of milk produced by the dairy 6 25 cattle. 6 26 (2) The lien is created at the time the livestock 6 27 arrive at the contract livestock facility and 6 28 continues for one year after the livestock is no 6 29 longer under the authority of the contract producer. 6 30 For purposes of this section, livestock is no longer 6 31 under the authority of the contract producer when the 6 32 livestock leave the contract livestock facility. 6 33 b. If the production contract is for the 6 34 production of a crop, all of the following shall 6 35 apply: 6 36 (1) The lien shall be upon the crop and the 6 37 identifiable cash proceeds from the sale of the crop. 6 38 (2) The lien is created at the time the crop is 6 39 planted and continues for one year after the crop is 6 40 no longer under the authority of the contract 6 41 producer. For purposes of this section, a crop is no 6 42 longer under the authority of the contract producer 6 43 when the crop or a warehouse receipt issued by a 6 44 warehouse operator licensed under chapter 203C for 6 45 grain from the crop is no longer under the custody or 6 46 control of the contract producer. 6 47 2. In order to preserve the lien, the contract 6 48 producer must file in the office of the secretary of 6 49 state a lien statement on a form prescribed by the 6 50 secretary of state. If the lien arises out of 7 1 producing livestock or milk, the contract producer 7 2 must file the lien within twenty days after the 7 3 livestock arrive at the contract livestock facility. 7 4 If the lien arises out of producing a crop, the 7 5 contract producer must file the lien within twenty 7 6 days after the crop is planted. The secretary of 7 7 state shall charge a fee of not more than ten dollars 7 8 for filing the statement. The secretary of state may 7 9 adopt rules pursuant to chapter 17A for the electronic 7 10 filing of the statements. The statement must include 7 11 all of the following: 7 12 a. An estimate of the amount owed pursuant to the 7 13 production contract. 7 14 b. The date when the livestock arrive at the 7 15 contract livestock facility or the date when the crop 7 16 was planted. 7 17 c. The estimated duration of the period when the 7 18 commodity will be under the authority of the contract 7 19 producer. 7 20 d. The name of the party to the production 7 21 contract whose commodity is produced pursuant to the 7 22 production contract. 7 23 e. The description of the location of the contract 7 24 operation, by county and township. 7 25 f. The printed name and signature of the person 7 26 filing the form. 7 27 4. Except as provided in chapter 581, a lien 7 28 created under this section until preserved and a lien 7 29 preserved under this section is superior to and shall 7 30 have priority over a conflicting lien or security 7 31 interest in the commodity, including a lien or 7 32 security interest that was perfected prior to the 7 33 creation of the lien provided under this section. 7 34 Sec. 15. NEW SECTION. 579B.3 ENFORCEMENT. 7 35 Before a commodity leaves the authority of the 7 36 contract producer as provided in section 579B.2, the 7 37 contract producer may foreclose a lien created in that 7 38 section in the manner provided for the foreclosure of 7 39 secured transactions as provided in sections 554.9504, 7 40 554.9506, and 554.9507. After the commodity is no 7 41 longer under the authority of the contract producer, 7 42 the contract producer may enforce the lien by 7 43 commencing an action at law for the amount of the lien 7 44 against either of the following: 7 45 1. The holder of the identifiable cash proceeds 7 46 from the sale of the commodity. 7 47 2. The processor who has purchased the commodity 7 48 within three days after the commodity is no longer 7 49 under the authority of the contract producer. 7 50 Sec. 16. NEW SECTION. 579B.4 WAIVERS 8 1 UNENFORCEABLE. 8 2 A waiver of a right created by this chapter, 8 3 including but not limited to a waiver of the right to 8 4 file a lien pursuant to this chapter, is void and 8 5 unenforceable. 8 6 Sec. 17. NEW SECTION. 579B.5 ALTERNATE LIEN 8 7 PROCEDURE. 8 8 A person who is a custom cattle feedlot operator as 8 9 defined in section 579A.1 may file and enforce a lien 8 10 as a contract producer under this chapter or chapter 8 11 579A, but not both. 8 12 Sec. 18. Section 714.8, Code 1999, is amended by 8 13 adding the following new subsection: 8 14 NEW SUBSECTION. 17. A contractor who includes a 8 15 confidentiality provision in a production contract in 8 16 violation of section 172C.2. 8 17 Sec. 19. EFFECTIVE DATE. This Act, being deemed 8 18 of immediate importance, takes effect upon enactment." 8 19 #2. Title page, by striking lines 1 and 2 and 8 20 inserting the following: "An Act relating to 8 21 production contracts, providing penalties, and 8 22 providing an effective". 8 23 8 24 8 25 8 26 MERLIN E. BARTZ 8 27 SF 443.501 78 8 28 da/jw
Text: S03165 Text: S03167 Text: S03100 - S03199 Text: S Index Bills and Amendments: General Index Bill History: General Index
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