Text: S03165                            Text: S03167
Text: S03100 - S03199                   Text: S Index
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Senate Amendment 3166

Amendment Text

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 are subject to care and
  3 47 feeding performed provided 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 or a person managing
  4  1 the custom cattle feedlot, if the person is authorized
  4  2 by the owner to file and enforce a lien under this
  4  3 chapter the owner's personal representative.
  4  4    4.  "Feedlot" means the same as defined in section
  4  5 172D.1 a 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 22 livestock cattle at the custom cattle feedlot agreed
  4 23 upon pursuant 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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