Text: S03397 Text: S03399 Text: S03300 - S03399 Text: S Index Bills and Amendments: General Index Bill History: General Index
PAG LIN 1 1 Amend House File 322, as amended, passed, and 1 2 reprinted by the House, as follows: 1 3 #1. By striking everything after the enacting 1 4 clause and inserting the following: 1 5 "Section 1. NEW SECTION. 8E.1 DEFINITIONS. 1 6 As used in this chapter, unless the context 1 7 otherwise requires: 1 8 1. "Active contractor" means a person who owns a 1 9 commodity that is produced by a contract producer at 1 10 the contract producer's contract operation pursuant to 1 11 a production contract executed pursuant to section 1 12 8E.2. 1 13 2. "Commodity" means livestock or a crop. 1 14 3. "Contract crop field" means farmland where a 1 15 crop is produced according to a production contract 1 16 executed pursuant to section 8E.2 by a contract 1 17 producer who holds a legal interest in the farmland. 1 18 4. "Contract livestock facility" means an animal 1 19 feeding operation as defined in section 455B.161, in 1 20 which livestock or raw milk is produced according to a 1 21 production contract executed pursuant to section 8E.2 1 22 by a contract producer who holds a legal interest in 1 23 the animal feeding operation. "Contract livestock 1 24 facility" includes a confinement feeding operation. 1 25 5. "Contract operation" means a contract livestock 1 26 facility or contract crop field. 1 27 6. "Contract producer" means a person who owns a 1 28 contract operation and who produces a commodity at the 1 29 contract producer's contract operation under a 1 30 production contract executed pursuant to section 8E.2. 1 31 7. "Contractor" means an active contractor or a 1 32 passive contractor. 1 33 8. a. "Crop" means a plant used for food, animal 1 34 feed, fiber, or oil, if the plant is classified as any 1 35 of the following: 1 36 (1) Forage and cereal plants, including but not 1 37 limited to alfalfa, barley, buckwheat, corn, flax, 1 38 forage, millet, oats, popcorn, rye, sorghum, soybeans, 1 39 sunflowers, wheat, and grasses used for forage or 1 40 silage. 1 41 (2) Vegetable plants, including but not limited to 1 42 beans, carrots, sweet corn, cucumbers, onions, peas, 1 43 potatoes, rutabagas, or turnips. 1 44 (3) Fruit and berry plants, other than fruit 1 45 trees, that produce edible fruit or berries, including 1 46 but not limited to tomatoes, melons, blackberries, 1 47 blueberries, cranberries, gooseberries, raspberries, 1 48 and strawberries. 1 49 b. A "crop" does not include trees or nuts or 1 50 fruit grown on trees; sod; shrubs; or greenhouse 2 1 plants. 2 2 9. "Feedlot" means a lot, yard, building, or other 2 3 area in which livestock is confined and fed and 2 4 maintained for forty-five days or more in any twelve- 2 5 month period. The term includes areas which are used 2 6 for the raising of crops or other vegetation and upon 2 7 which livestock is fed for slaughter or are allowed to 2 8 graze or feed. 2 9 10. "Livestock" means beef cattle, dairy cattle, 2 10 sheep, or swine. 2 11 11. "Passive contractor" means a person who 2 12 furnishes management services to a contract producer, 2 13 and who does not own a commodity that is produced by 2 14 the contract producer. 2 15 12. "Produce" means to do any of the following: 2 16 a. Provide for the care and feeding of livestock. 2 17 If the livestock is dairy cattle, "produce" includes 2 18 milking the dairy cattle. 2 19 b. Provide for planting, raising, harvesting, and 2 20 storing a crop. "Produce" includes preparing the soil 2 21 for planting and nurturing the crop by the application 2 22 of fertilizers or soil conditioners as defined in 2 23 section 200.3 or pesticides as defined in section 2 24 206.2. 2 25 13. "Production contract" means an oral or written 2 26 agreement executed pursuant to section 8E.2 that 2 27 provides for the production of a commodity or the 2 28 provision of management services relating to the 2 29 production of a commodity by a contract producer. 2 30 Sec. 2. NEW SECTION. 8E.2 PRODUCTION CONTRACTS 2 31 GOVERNED BY THIS CHAPTER. 2 32 1. This chapter applies to a production contract 2 33 that relates to the production of a commodity owned by 2 34 an active contractor and produced by a contract 2 35 producer at the contract producer's contract 2 36 operation, if one of the following applies: 2 37 a. The contract is executed by an active 2 38 contractor and a contract producer for the production 2 39 of the commodity. 2 40 b. The contract is executed by an active 2 41 contractor and a passive contractor for the provision 2 42 of management services to the contract producer in the 2 43 production of the commodity. 2 44 c. The contract is executed by a passive 2 45 contractor and a contract producer, if all of the 2 46 following apply: 2 47 (1) The contract provides for management services 2 48 furnished by the passive contractor to the contract 2 49 producer in the production of the commodity. 2 50 (2) The passive contractor has a contractual 3 1 relationship with the active contractor involving the 3 2 production of the commodity. 3 3 2. A production contract is executed when it is 3 4 signed by each party or by a person who is authorized 3 5 by a party to act on the party's behalf. 3 6 Sec. 3. NEW SECTION. 8E.3 PRODUCTION CONTRACTS 3 7 – CONFIDENTIALITY PROHIBITED. 3 8 1. A contractor shall not include a provision in a 3 9 production contract which provides that information 3 10 contained in the production contract is confidential. 3 11 2. A provision which is part of a production 3 12 contract is void, if the provision states that 3 13 information contained in the production contract is 3 14 confidential. The confidentiality provision is void 3 15 regardless of when executed or whether the 3 16 confidentiality provision is express or implied; oral 3 17 or written; required or conditional; contained in the 3 18 production contract, another production contract, or 3 19 in a related document, policy, or agreement. This 3 20 section does not require either party to a production 3 21 contract to divulge the information in the production 3 22 contract to another person. 3 23 Sec. 4. NEW SECTION. 8E.4 PRODUCTION CONTRACTS 3 24 REQUIRED TO BE FILED. 3 25 1. As used in this section, all of the following 3 26 apply: 3 27 a. A production contract is advertised if it is 3 28 presented or delivered to a person who may execute the 3 29 contract under section 8E.2, regardless of whether it 3 30 is part of an offer. 3 31 b. A production contract is advertised or executed 3 32 regardless of whether it is a new production contract 3 33 or the renewal or extension of a previous production 3 34 contract. 3 35 2. a. On or before March 31 of each year, a 3 36 contractor shall file with the secretary of state 3 37 types of production contracts that are either 3 38 advertised or in effect and are executed by the 3 39 contractor. After the annual filing is required, a 3 40 contractor shall not advertise or execute another type 3 41 of production contract, unless the contractor files 3 42 that type of production contract with the secretary of 3 43 state. 3 44 b. If the production contract is written, the type 3 45 of contract required to be filed shall be a copy of 3 46 the production contract. If the production contract 3 47 is oral, the type of contract required to be filed 3 48 shall be a description of the production contract. 3 49 The type of production contracts filed with the 3 50 secretary of state shall not include the printed name 4 1 or signature of a contract producer. 4 2 3. The secretary of state in consultation with the 4 3 attorney general shall adopt rules required to 4 4 administer this chapter, including but not limited to 4 5 rules which provide for all of the following: 4 6 a. Provide criteria for distinguishing types of 4 7 production contracts. The rules shall categorize the 4 8 types of production contracts that must be submitted 4 9 to the secretary of state under this section. 4 10 b. The secretary of state may require that the 4 11 types of production contracts be filed in an 4 12 electronic format. 4 13 c. Provide an exemption to the filing requirement 4 14 as provided in this section because of any of the 4 15 following: 4 16 (1) The consideration owed by the contractor under 4 17 all production contracts executed by the contractor 4 18 and a contract producer is minimal. 4 19 (2) There is a family relationship between the 4 20 contractor and the contract producer. 4 21 (3) The contractor and the contract producer are 4 22 part of the same family farm entity or networking 4 23 farmers entity. 4 24 (4) The commodity is produced for a purpose other 4 25 than for use by a processor. 4 26 4. This section does not apply to a contractor who 4 27 executes a production contract with a contract 4 28 producer for the production of cattle at a custom 4 29 cattle feedlot as defined in section 579A.1. 4 30 5. The attorney general may provide an analysis of 4 31 filed production contracts in order to assist contract 4 32 producers in negotiating production contracts. 4 33 However, the secretary of state, in consultation with 4 34 the attorney general, may designate some information 4 35 contained in a production contract as confidential, if 4 36 such information is a confidential record under 4 37 section 22.7. 4 38 Sec. 5. NEW SECTION. 8E.5 ENFORCEMENT. 4 39 1. The attorney general's office is the primary 4 40 agency responsible for enforcing this chapter. The 4 41 secretary of state shall notify the attorney general's 4 42 office if the secretary of state has reason to believe 4 43 that a violation of section 8E.4 has occurred. 4 44 2. In enforcing the provisions of this chapter, 4 45 the attorney general may do all of the following: 4 46 a. Apply to the district court for an injunction 4 47 to do any of the following: 4 48 (1) Restrain a contractor from engaging in conduct 4 49 or practices in violation of this chapter. 4 50 (2) Require a contractor to comply with a 5 1 provision of this chapter. 5 2 b. Apply to court for the issuance of a subpoena 5 3 to obtain a production contract for purposes of 5 4 enforcing this chapter. 5 5 c. Bring an action in court to enforce penalties 5 6 provided in section 8E.6, including the assessment and 5 7 collection of civil penalties. 5 8 Sec. 6. NEW SECTION. 8E.6 PENALTIES. 5 9 1. A contractor who includes a confidentiality 5 10 provision in a production contract in violation of 5 11 section 8E.3 is guilty of a fraudulent practice as 5 12 provided in section 714.8. 5 13 2. A contractor who fails to file a timely or 5 14 complete production contract type as required in 5 15 section 8E.4 is subject to a civil penalty not to 5 16 exceed one thousand dollars. Each contract advertised 5 17 or executed in violation of section 8E.4 constitutes a 5 18 separate offense. 5 19 Sec. 7. Section 579A.1, subsections 2, 3, and 4, 5 20 Code 1999, are amended to read as follows: 5 21 2. "Custom cattle feedlot" means a feedlot where 5 22 cattle owned by a person aresubject to care and5 23feeding performedprovided feed and care by another 5 24 person. 5 25 3. "Custom cattle feedlot operator" means the 5 26 owner of a custom cattle feedlot ora person managing5 27the custom cattle feedlot, if the person is authorized5 28by the owner to file and enforce a lien under this5 29chapterthe owner's personal representative. 5 30 4. "Feedlot" meansthe same as defined in section5 31172D.1a lot, yard, corral, building, or other area in 5 32 which cattle are confined and fed and maintained for 5 33 forty-five days or more in any twelve-month period. 5 34 Sec. 8. Section 579A.1, Code 1999, is amended by 5 35 adding the following new subsection: 5 36 NEW SUBSECTION. 4A. "Personal representative" 5 37 means a person who is authorized by the owner of a 5 38 custom cattle feedlot to act on behalf of the owner, 5 39 including by executing an agreement, managing a custom 5 40 cattle feedlot, or filing and enforcing liens under 5 41 this chapter. 5 42 Sec. 9. Section 579A.2, subsection 1, Code 1999, 5 43 is amended to read as follows: 5 44 1. A custom cattle feedlot operator shall have a 5 45 lien upon the cattle and the identifiable cash 5 46 proceeds from the sale of the cattle for the amount of 5 47 the contract price for the feed and care of the 5 48livestockcattle at the custom cattle feedlotagreed5 49uponpursuant to a written or oral agreement by the 5 50 custom cattle feedlot operator and the person who owns 6 1 the cattle, which may be enforced as provided in 6 2 section 579A.3. 6 3 Sec. 10. Section 579A.2, subsection 2, paragraph 6 4 e, Code 1999, is amended to read as follows: 6 5 e. The printed name and signature of the person 6 6 filing the form. 6 7 Sec. 11. Section 579A.2, subsection 3, Code 1999, 6 8 is amended to read as follows: 6 9 3. Except as provided in chapter 581, a lien 6 10 created under this section until preserved and a lien 6 11 preserved under this section is superior to and shall 6 12 have priority over a conflicting lien or security 6 13 interest in the cattle, including a lien or security 6 14 interest that was perfected prior to the creation of 6 15 the lien provided under this section. 6 16 Sec. 12. NEW SECTION. 579A.4 WAIVERS 6 17 UNENFORCEABLE. 6 18 A waiver of a right created by this chapter, 6 19 including but not limited to, a waiver of the right to 6 20 file a lien pursuant to this chapter is void and 6 21 unenforceable. This section does not affect other 6 22 provisions of a contract, including a production 6 23 contract or a related document, policy, or agreement 6 24 which can be given effect without the voided 6 25 provision. 6 26 Sec. 13. NEW SECTION. 579A.5 ALTERNATE LIEN 6 27 PROCEDURE. 6 28 A person who is a custom cattle feedlot operator 6 29 may file and enforce a lien as a contract producer 6 30 under this chapter or chapter 579B, but not both. 6 31 Sec. 14. NEW SECTION. 579B.1 DEFINITIONS. 6 32 As used in this chapter, unless the context 6 33 otherwise requires: 6 34 1. "Commodity" means livestock or a crop. 6 35 2. "Contract crop field" means farmland where a 6 36 crop is produced according to a production contract 6 37 executed pursuant to section 579B.2 by a contract 6 38 producer who holds a legal interest in the farmland. 6 39 3. "Contract livestock facility" means an animal 6 40 feeding operation as defined in section 455B.161, in 6 41 which livestock or milk is produced according to a 6 42 production contract executed pursuant to section 6 43 572B.2 by a contract producer who holds a legal 6 44 interest in the animal feeding operation. "Contract 6 45 livestock facility" includes a confinement feeding 6 46 operation as defined in section 455B.161 or a feedlot 6 47 as defined in section 579A.1, including a custom 6 48 cattle feedlot. 6 49 4. "Contract operation" means a contract livestock 6 50 facility or contract crop field. 7 1 5. "Contract producer" means a person who holds a 7 2 legal interest in a contract operation and who 7 3 produces a commodity under a production contract. 7 4 6. "Contractor" means a person who owns a 7 5 commodity at the time that the commodity is under the 7 6 authority of the contract producer as provided in 7 7 section 579B.3 pursuant to a production contract 7 8 executed pursuant to section 579B.2. 7 9 7. a. "Crop" means a plant used for food, animal 7 10 feed, fiber, or oil, if the plant is classified as any 7 11 of the following: 7 12 (1) Forage and cereal plants, including but not 7 13 limited to alfalfa, barley, buckwheat, corn, emmer, 7 14 flax, forage, millet, oats, popcorn, rye, sorghum, 7 15 soybeans, spelt, sunflowers, wheat, and grasses used 7 16 for forage or silage. 7 17 (2) Vegetable plants, including but not limited to 7 18 beans, carrots, sweet corn, cucumbers, onions, peas, 7 19 potatoes, rutabagas, or turnips. 7 20 (3) Fruit and berry plants, other than fruit 7 21 trees, that produce edible fruit or berries, including 7 22 but not limited to tomatoes, melons, blackberries, 7 23 blueberries, cranberries, gooseberries, raspberries, 7 24 and strawberries. 7 25 b. A "crop" does not include trees or nuts or 7 26 fruit grown on trees; sod; shrubs; or greenhouse 7 27 plants. 7 28 8. "Livestock" means beef cattle, dairy cattle, 7 29 sheep, or swine. 7 30 9. "Personal representative" means a person who is 7 31 authorized by a contract producer to act on behalf of 7 32 the contract producer. 7 33 10. "Processor" means a person engaged in the 7 34 business of manufacturing goods from commodities, 7 35 including by slaughtering or processing livestock, 7 36 processing milk, or processing crops. 7 37 11. "Produce" means to do any of the following: 7 38 a. Provide feed or services relating to the care 7 39 and feeding of livestock. If the livestock is dairy 7 40 cattle, "produce" includes milking the dairy cattle. 7 41 b. Provide for planting, raising, harvesting, and 7 42 storing crop. "Produce" includes preparing the soil 7 43 for planting and nurturing the crop by the application 7 44 of fertilizers or soil conditioners as defined in 7 45 section 200.3 or pesticides as defined in section 7 46 206.2. 7 47 12. "Production contract" means an oral or written 7 48 agreement that provides for the production of a 7 49 commodity by a contract producer. 7 50 Sec. 15. NEW SECTION. 579B.2 LIEN DEPENDS UPON 8 1 PRODUCTION CONTRACTS. 8 2 1. A lien established under section 579B.3 depends 8 3 upon the execution of a production contract that 8 4 provides for producing a commodity owned by a 8 5 contractor by a contract producer at the contract 8 6 producer's contract operation. 8 7 2. A production contract is executed when it is 8 8 signed or orally agreed to by each party to the 8 9 contract or by a person authorized by a party to act 8 10 on the party's behalf, including the contract 8 11 producer's personal representative. 8 12 3. This chapter applies to any production contract 8 13 that is in force on or after the effective date of 8 14 this Act, regardless of the date that the production 8 15 contract is executed. 8 16 Sec. 16. NEW SECTION. 579B.3 ESTABLISHMENT OF 8 17 LIEN – PRIORITY. 8 18 A contract producer who is a party to a production 8 19 contract executed pursuant to section 579B.2 shall 8 20 have a lien as provided in this section. The amount 8 21 of the lien shall be the amount owed to the contract 8 22 producer pursuant to the terms of the production 8 23 contract. 8 24 1. a. If the production contract is for the 8 25 production of livestock or milk, all of the following 8 26 shall apply: 8 27 (1) For livestock, the lien shall apply to all of 8 28 the following: 8 29 (a) If the livestock is not sold or slaughtered by 8 30 the contract producer, the lien shall be on the 8 31 livestock. 8 32 (b) If the livestock is sold by the contractor, 8 33 the lien shall be on cash proceeds from the sale. For 8 34 purposes of this subparagraph, cash held by the 8 35 contractor shall be deemed to be cash proceeds from 8 36 the sale regardless of whether it is identifiable cash 8 37 proceeds. 8 38 (c) If the livestock is slaughtered by the 8 39 contractor, the lien shall be on any property of the 8 40 contractor that may be subject to a security interest 8 41 as provided in section 554.9102. 8 42 (2) For milk, the lien shall apply to all of the 8 43 following: 8 44 (a) If the milk is not sold or processed by the 8 45 contract producer, the lien shall be on the raw milk. 8 46 (b) If the milk is sold by the contractor, the 8 47 lien shall be on cash proceeds from the sale. For 8 48 purposes of this subparagraph, cash held by the 8 49 contractor shall be deemed to be cash proceeds from 8 50 the sale regardless of whether it is identifiable cash 9 1 proceeds. 9 2 (c) If the milk is processed by the contractor, 9 3 the lien shall be on any property of the contractor 9 4 that may be subject to a security interest as provided 9 5 in section 554.9102. 9 6 b. The lien on livestock or milk is created at the 9 7 time the livestock arrives at the contract livestock 9 8 facility and continues for one year after the 9 9 livestock is no longer under the authority of the 9 10 contract producer. For purposes of this section, 9 11 livestock is no longer under the authority of the 9 12 contract producer when the livestock leave the 9 13 contract livestock facility. 9 14 2. a. If the production contract is for the 9 15 production of crops, all of the following shall apply: 9 16 (1) If the crop is not sold or processed by the 9 17 contractor, the lien shall be on the crop. 9 18 (2) If the crop is sold by the contractor, the 9 19 lien shall be on cash proceeds from the sale. For 9 20 purposes of this subparagraph, cash held by the 9 21 contractor shall be deemed to be cash proceeds from 9 22 the sale regardless of whether it is identifiable cash 9 23 proceeds. 9 24 (3) If the crop is processed by the contractor, 9 25 the lien shall be on any property of the contractor 9 26 that may be subject to a security interest as provided 9 27 in section 554.9102. 9 28 b. The lien on a crop is created at the time the 9 29 crop is planted and continues for one year after the 9 30 crop is no longer under the authority of the contract 9 31 producer. For purposes of this section, a crop is no 9 32 longer under the authority of the contract producer 9 33 when the crop or a warehouse receipt issued by a 9 34 warehouse operator for grain from the crop is no 9 35 longer under the custody or control of the contract 9 36 producer. 9 37 Sec. 17. NEW SECTION. 579B.4 PRESERVING THE LIEN 9 38 – FILING REQUIREMENTS. 9 39 1. In order to preserve a lien created pursuant to 9 40 section 579B.3, a contract producer must file in the 9 41 office of the secretary of state a lien statement on a 9 42 form prescribed by the secretary of state. If the 9 43 lien arises out of producing livestock or milk, the 9 44 contract producer must file the lien within forty-five 9 45 days after the day that the livestock first arrive at 9 46 the contract livestock facility. If the lien arises 9 47 out of producing a crop, the contract producer must 9 48 file the lien within forty-five days after the day 9 49 that the crop is first planted. The secretary of 9 50 state shall charge a fee of not more than ten dollars 10 1 for filing the statement. The secretary of state may 10 2 adopt rules pursuant to chapter 17A for the electronic 10 3 filing of the statements. 10 4 2. The statement must include all of the 10 5 following: 10 6 a. An estimate of the amount owed pursuant to the 10 7 production contract. 10 8 b. The date when the livestock arrive at the 10 9 contract livestock facility or the date when the crop 10 10 was planted. 10 11 c. The name of the party to the production 10 12 contract whose commodity is produced pursuant to the 10 13 production contract. 10 14 d. The description of the location of the contract 10 15 operation, by county and township. 10 16 e. The printed name and signature of the person 10 17 filing the form. 10 18 3. Except as provided in chapter 581, a lien 10 19 created under this section until preserved and a lien 10 20 preserved under this section is superior to and shall 10 21 have priority over a conflicting lien or security 10 22 interest in the commodity, including a lien or 10 23 security interest that was perfected prior to the 10 24 creation of the lien. 10 25 Sec. 18. NEW SECTION. 579B.5 ENFORCEMENT. 10 26 Before a commodity leaves the authority of the 10 27 contract producer as provided in section 579B.3, the 10 28 contract producer may foreclose a lien created in that 10 29 section in the manner provided for the foreclosure of 10 30 secured transactions as provided in sections 554.9504, 10 31 554.9506, and 554.9507. After the commodity is no 10 32 longer under the authority of the contract producer, 10 33 the contract producer may enforce the lien in the 10 34 manner provided in chapter 554, article 9, part 5. 10 35 Sec. 19. NEW SECTION. 579B.6 WAIVERS 10 36 UNENFORCEABLE. 10 37 A waiver of a right created by this chapter, 10 38 including but not limited to a waiver of the right to 10 39 file a lien pursuant to this chapter, is void and 10 40 unenforceable. 10 41 Sec. 20. NEW SECTION. 579B.7 ALTERNATE LIEN 10 42 PROCEDURE. 10 43 A person who is a custom cattle feedlot operator as 10 44 defined in section 579A.1 may file and enforce a lien 10 45 as a contract producer under this chapter or chapter 10 46 579A, but not both. 10 47 Sec. 21. Section 714.8, Code 1999, is amended by 10 48 adding the following new subsection: 10 49 NEW SUBSECTION. 17. A contractor who includes a 10 50 confidentiality provision in a production contract in 11 1 violation of section 8E.3. 11 2 Sec. 22. EFFECT OF RULEMAKING. The secretary of 11 3 state shall adopt rules necessary in order to 11 4 administer this Act with all due diligence. In 11 5 addition to the requirement that a contractor file 11 6 production contracts by March 31, 2000, as provided by 11 7 section 8E.4, as enacted in this Act, a contractor 11 8 shall file production contracts as otherwise required 11 9 pursuant to that section within ten days following the 11 10 date that the rules become effective. 11 11 Sec. 23. EFFECTIVE DATE. This Act, being deemed 11 12 of immediate importance, takes effect upon enactment." 11 13 11 14 11 15 11 16 MERLIN E. BARTZ 11 17 HF 322.205 78 11 18 da/gg
Text: S03397 Text: S03399 Text: S03300 - S03399 Text: S Index Bills and Amendments: General Index Bill History: General Index
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