Text: S03446 Text: S03448 Text: S03400 - S03499 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, raw milk, or a 1 14 crop. 1 15 3. "Contract crop field" means farmland where a 1 16 crop is produced according to a production contract 1 17 executed pursuant to section 8E.2 by a contract 1 18 producer who holds a legal interest in the farmland. 1 19 4. "Contract livestock facility" means an animal 1 20 feeding operation as defined in section 455B.161, in 1 21 which livestock or raw milk is produced according to a 1 22 production contract executed pursuant to section 8E.2 1 23 by a contract producer who holds a legal interest in 1 24 the animal feeding operation. "Contract livestock 1 25 facility" includes a confinement feeding operation as 1 26 defined in section 455B.161, an open feedlot, or an 1 27 area which is used for the raising of crops or other 1 28 vegetation and upon which livestock is fed for 1 29 slaughter or is allowed to graze or feed. 1 30 5. "Contract operation" means a contract livestock 1 31 facility or contract crop field. 1 32 6. "Contract producer" means a person who holds a 1 33 legal interest in a contract operation and who 1 34 produces a commodity at the contract producer's 1 35 contract operation under a production contract 1 36 executed pursuant to section 8E.2. 1 37 7. "Contractor" means an active contractor or a 1 38 passive contractor. 1 39 8. a. "Crop" means a plant used for food, animal 1 40 feed, fiber, or oil, if the plant is classified as a 1 41 forage or cereal plant, including but not limited to 1 42 alfalfa, barley, buckwheat, corn, flax, forage, 1 43 millet, oats, popcorn, rye, sorghum, soybeans, 1 44 sunflowers, wheat, and grasses used for forage or 1 45 silage. 1 46 b. A "crop" does not include trees or nuts or 1 47 fruit grown on trees; sod; shrubs; greenhouse plants; 1 48 or plants or plant parts produced for precommercial, 1 49 experimental, or research purposes. 1 50 9. "Farmland" means agricultural land that is 2 1 suitable for use in farming as defined in section 2 2 9H.1. 2 3 10. "Livestock" means beef cattle, dairy cattle, 2 4 sheep, or swine. 2 5 11. "Open feedlot" means an unroofed or partially 2 6 roofed animal feeding operation in which no crop, 2 7 vegetation, or forage growth or residue cover is 2 8 maintained during the period that animals are confined 2 9 in the operation. 2 10 12. "Passive contractor" means a person who 2 11 furnishes management services to a contract producer, 2 12 and who does not own a commodity that is produced by 2 13 the contract producer at the contract producer's 2 14 contract operation according to a production contract 2 15 which is executed pursuant to section 8E.2. 2 16 13. "Produce" means to do any of the following: 2 17 a. Provide feed or services relating to the care 2 18 and feeding of livestock. If the livestock is dairy 2 19 cattle, "produce" includes milking the dairy cattle 2 20 and storing raw milk at the contract producer's 2 21 contract livestock facility. 2 22 b. Provide for planting, raising, harvesting, and 2 23 storing a crop. "Produce" includes preparing the soil 2 24 for planting and nurturing the crop by the application 2 25 of fertilizers or soil conditioners as defined in 2 26 section 200.3 or pesticides as defined in section 2 27 206.2. 2 28 14. "Production contract" means an oral or written 2 29 agreement executed pursuant to section 8E.2 that 2 30 provides for the production of a commodity or the 2 31 provision of management services relating to the 2 32 production of a commodity by a contract producer. 2 33 Sec. 2. NEW SECTION. 8E.2 PRODUCTION CONTRACTS 2 34 GOVERNED BY THIS CHAPTER. 2 35 1. This chapter applies to a production contract 2 36 that relates to the production of a commodity owned by 2 37 an active contractor and produced by a contract 2 38 producer at the contract producer's contract 2 39 operation, if one of the following applies: 2 40 a. The contract is executed by an active 2 41 contractor and a contract producer for the production 2 42 of the commodity. 2 43 b. The contract is executed by an active 2 44 contractor and a passive contractor for the provision 2 45 of management services to the contract producer in the 2 46 production of the commodity. 2 47 c. The contract is executed by a passive 2 48 contractor and a contract producer, if all of the 2 49 following apply: 2 50 (1) The contract provides for management services 3 1 furnished by the passive contractor to the contract 3 2 producer in the production of the commodity. 3 3 (2) The passive contractor has a contractual 3 4 relationship with the active contractor involving the 3 5 production of the commodity. 3 6 2. A production contract is executed when it is 3 7 signed or orally agreed to by each party or by a 3 8 person who is authorized by a party to act on the 3 9 party's behalf. 3 10 Sec. 3. NEW SECTION. 8E.3 PRODUCTION CONTRACTS 3 11 – CONFIDENTIALITY PROHIBITED. 3 12 1. A contractor shall not execute a production 3 13 contract after the effective date of this Act, if the 3 14 production contract includes a provision which 3 15 provides that information contained in the production 3 16 contract is confidential. 3 17 2. A provision which is part of a production 3 18 contract is void, if the provision states that 3 19 information contained in the production contract is 3 20 confidential. The confidentiality provision is void 3 21 whether the confidentiality provision is express or 3 22 implied; oral or written; required or conditional; 3 23 contained in the production contract, another 3 24 production contract, or in a related document, policy, 3 25 or agreement. This section does not affect other 3 26 provisions of a production contract or a related 3 27 document, policy, or agreement which can be given 3 28 effect without the voided provision. This section 3 29 does not require a party to a production contract to 3 30 divulge the information in the production contract to 3 31 another person. 3 32 Sec. 4. NEW SECTION. 8E.4 ENFORCEMENT. 3 33 1. The attorney general's office is the primary 3 34 agency responsible for enforcing this chapter. 3 35 2. In enforcing the provisions of this chapter, 3 36 the attorney general may do all of the following: 3 37 a. Apply to the district court for an injunction 3 38 to do any of the following: 3 39 (1) Restrain a contractor from engaging in conduct 3 40 or practices in violation of this chapter. 3 41 (2) Require a contractor to comply with a 3 42 provision of this chapter. 3 43 b. Apply to district court for the issuance of a 3 44 subpoena to obtain a production contract for purposes 3 45 of enforcing this chapter. 3 46 c. Bring an action in district court to enforce 3 47 penalties provided in section 8E.5, including the 3 48 assessment and collection of civil penalties. 3 49 Sec. 5. NEW SECTION. 8E.5 PENALTIES. 3 50 A contractor who executes a production contract 4 1 that includes a confidentiality provision in a 4 2 production contract in violation of section 8E.3 is 4 3 guilty of a fraudulent practice as provided in section 4 4 714.8. 4 5 Sec. 6. Section 579A.1, subsections 2, 3, and 4, 4 6 Code 1999, are amended to read as follows: 4 7 2. "Custom cattle feedlot" means a feedlot where 4 8 cattle owned by a person aresubject to care and4 9feeding performedprovided feed and care by another 4 10 person. 4 11 3. "Custom cattle feedlot operator" means the 4 12 owner of a custom cattle feedlot ora person managing4 13the custom cattle feedlot, if the person is authorized4 14by the owner to file and enforce a lien under this4 15chapterthe owner's personal representative. 4 16 4. "Feedlot" meansthe same as defined in section4 17172D.1a lot, yard, corral, building, or other area in 4 18 which cattle are confined and fed and maintained for 4 19 forty-five days or more in any twelve-month period. 4 20 Sec. 7. Section 579A.1, Code 1999, is amended by 4 21 adding the following new subsection: 4 22 NEW SUBSECTION. 4A. "Personal representative" 4 23 means a person who is authorized by the owner of a 4 24 custom cattle feedlot to act on behalf of the owner, 4 25 including by executing an agreement, managing a custom 4 26 cattle feedlot, or filing and enforcing liens under 4 27 this chapter. 4 28 Sec. 8. Section 579A.2, subsection 1, Code 1999, 4 29 is amended to read as follows: 4 30 1. A custom cattle feedlot operator shall have a 4 31 lien upon the cattle and the identifiable cash 4 32 proceeds from the sale of the cattle for the amount of 4 33 the contract price for the feed and care of the 4 34livestockcattle at the custom cattle feedlotagreed4 35uponpursuant to a written or oral agreement by the 4 36 custom cattle feedlot operator and the person who owns 4 37 the cattle, which may be enforced as provided in 4 38 section 579A.3. 4 39 Sec. 9. Section 579A.2, subsection 2, paragraph e, 4 40 Code 1999, is amended to read as follows: 4 41 e. The printed name and signature of the person 4 42 filing the form. 4 43 Sec. 10. Section 579A.2, subsection 3, Code 1999, 4 44 is amended to read as follows: 4 45 3. Except as provided in chapter 581, a lien 4 46 created under this section until preserved and a lien 4 47 preserved under this section is superior to and shall 4 48 have priority over a conflicting lien or security 4 49 interest in the cattle, including a lien or security 4 50 interest that was perfected prior to the creation of 5 1 the lien provided under this section. 5 2 Sec. 11. NEW SECTION. 579A.4 WAIVERS 5 3 UNENFORCEABLE. 5 4 A waiver of a right created by this chapter, 5 5 including but not limited to, a waiver of the right to 5 6 file a lien pursuant to this chapter is void and 5 7 unenforceable. This section does not affect other 5 8 provisions of a contract, including a production 5 9 contract or a related document, policy, or agreement 5 10 which can be given effect without the voided 5 11 provision. 5 12 Sec. 12. NEW SECTION. 579A.5 ALTERNATE LIEN 5 13 PROCEDURE. 5 14 A person who is a custom cattle feedlot operator 5 15 may file and enforce a lien as a contract producer 5 16 under this chapter or chapter 579B, but not both. 5 17 Sec. 13. NEW SECTION. 579B.1 DEFINITIONS. 5 18 As used in this chapter, unless the context 5 19 otherwise requires: 5 20 1. "Commodity" means livestock, raw milk, or a 5 21 crop. 5 22 2. "Contract crop field" means farmland where a 5 23 crop is produced according to a production contract 5 24 executed pursuant to section 579B.2 by a contract 5 25 producer who holds a legal interest in the farmland. 5 26 3. "Contract livestock facility" means an animal 5 27 feeding operation as defined in section 455B.161, in 5 28 which livestock or raw milk is produced according to a 5 29 production contract executed pursuant to section 5 30 579B.2 by a contract producer who holds a legal 5 31 interest in the animal feeding operation. "Contract 5 32 livestock facility" includes a confinement feeding 5 33 operation as defined in section 455B.161, an open 5 34 feedlot, or an area which is used for the raising of 5 35 crops or other vegetation and upon which livestock is 5 36 fed for slaughter or is allowed to graze or feed. 5 37 4. "Contract operation" means a contract livestock 5 38 facility or contract crop field. 5 39 5. "Contract producer" means a person who holds a 5 40 legal interest in a contract operation and who 5 41 produces a commodity under a production contract 5 42 executed pursuant to section 579B.2. 5 43 6. "Contractor" means a person who owns a 5 44 commodity at the time that the commodity is under the 5 45 authority of the contract producer as provided in 5 46 section 579B.3 pursuant to a production contract 5 47 executed pursuant to section 579B.2. 5 48 7. a. "Crop" means a plant used for food, animal 5 49 feed, fiber, or oil, if the plant is classified as a 5 50 forage or cereal plant, including but not limited to 6 1 alfalfa, barley, buckwheat, corn, flax, forage, 6 2 millet, oats, popcorn, rye, sorghum, soybeans, 6 3 sunflowers, wheat, and grasses used for forage or 6 4 silage. 6 5 b. A "crop" does not include trees or nuts or 6 6 fruit grown on trees; sod; shrubs; greenhouse plants; 6 7 or plants or plant parts produced for precommercial, 6 8 experimental, or research purposes. 6 9 8. "Farmland" means agricultural land suitable for 6 10 use in farming as defined in section 9H.1. 6 11 9. "Livestock" means beef cattle, dairy cattle, 6 12 sheep, or swine. 6 13 10. "Open feedlot" means the same as defined in 6 14 section 8E.1. 6 15 11. "Personal representative" means a person who 6 16 is authorized by a contract producer to act on behalf 6 17 of the contract producer, including by executing an 6 18 agreement, managing a contract operation, or filing 6 19 and enforcing a lien as provided in this chapter. 6 20 12. "Processor" means a person engaged in the 6 21 business of manufacturing goods from commodities, 6 22 including by slaughtering or processing livestock, 6 23 processing raw milk, or processing crops. 6 24 13. "Produce" means to do any of the following: 6 25 a. Provide feed or services relating to the care 6 26 and feeding of livestock. If the livestock is dairy 6 27 cattle, "produce" includes milking the dairy cattle 6 28 and storing raw milk at the contract producer's 6 29 contract livestock facility. 6 30 b. Provide for planting, raising, harvesting, and 6 31 storing crop. "Produce" includes preparing the soil 6 32 for planting and nurturing the crop by the application 6 33 of fertilizers or soil conditioners as defined in 6 34 section 200.3 or pesticides as defined in section 6 35 206.2. 6 36 14. "Production contract" means an oral or written 6 37 agreement executed pursuant to section 579B.2 that 6 38 provides for the production of a commodity by a 6 39 contract producer. 6 40 Sec. 14. NEW SECTION. 579B.2 LIEN DEPENDS UPON 6 41 PRODUCTION CONTRACTS. 6 42 1. A lien established under section 579B.3 depends 6 43 upon the execution of a production contract that 6 44 provides for producing a commodity owned by a 6 45 contractor by a contract producer at the contract 6 46 producer's contract operation. 6 47 2. A production contract is executed when it is 6 48 signed or orally agreed to by each party to the 6 49 contract or by a person authorized by a party to act 6 50 on the party's behalf, including the contract 7 1 producer's personal representative. 7 2 3. This chapter applies to any production contract 7 3 that is in force on or after the effective date of 7 4 this Act, regardless of the date that the production 7 5 contract is executed. 7 6 Sec. 15. NEW SECTION. 579B.3 ESTABLISHMENT OF 7 7 LIEN – PRIORITY. 7 8 A contract producer who is a party to a production 7 9 contract executed pursuant to section 579B.2 shall 7 10 have a lien as provided in this section. The amount 7 11 of the lien shall be the amount owed to the contract 7 12 producer pursuant to the terms of the production 7 13 contract, which may be enforced as provided in section 7 14 579B.5. 7 15 1. a. If the production contract is for the 7 16 production of livestock or raw milk, all of the 7 17 following shall apply: 7 18 (1) For livestock, the lien shall apply to all of 7 19 the following: 7 20 (a) If the livestock is not sold or slaughtered by 7 21 the contract producer, the lien shall be on the 7 22 livestock. 7 23 (b) If the livestock is sold by the contractor, 7 24 the lien shall be on cash proceeds from the sale. For 7 25 purposes of this subparagraph, cash held by the 7 26 contractor shall be deemed to be cash proceeds from 7 27 the sale regardless of whether it is identifiable cash 7 28 proceeds. 7 29 (c) If the livestock is slaughtered by the 7 30 contractor, the lien shall be on any property of the 7 31 contractor that may be subject to a security interest 7 32 as provided in section 554.9102. 7 33 (2) For raw milk, the lien shall apply to all of 7 34 the following: 7 35 (a) If the raw milk is not sold or processed by 7 36 the contract producer, the lien shall be on the raw 7 37 milk. 7 38 (b) If the raw milk is sold by the contractor, the 7 39 lien shall be on cash proceeds from the sale. For 7 40 purposes of this subparagraph, cash held by the 7 41 contractor shall be deemed to be cash proceeds from 7 42 the sale regardless of whether it is identifiable cash 7 43 proceeds. 7 44 (c) If the raw milk is processed by the 7 45 contractor, the lien shall be on any property of the 7 46 contractor that may be subject to a security interest 7 47 as provided in section 554.9102. 7 48 b. The lien on livestock or raw milk is created at 7 49 the time the livestock arrives at the contract 7 50 livestock facility and continues for one year after 8 1 the livestock is no longer under the authority of the 8 2 contract producer. For purposes of this section, 8 3 livestock is no longer under the authority of the 8 4 contract producer when the livestock leaves the 8 5 contract livestock facility. 8 6 2. a. If the production contract is for the 8 7 production of crops, all of the following shall apply: 8 8 (1) If the crop is not sold or processed by the 8 9 contractor, the lien shall be on the crop. 8 10 (2) If the crop is sold by the contractor, the 8 11 lien shall be on cash proceeds from the sale. For 8 12 purposes of this subparagraph, cash held by the 8 13 contractor shall be deemed to be cash proceeds from 8 14 the sale regardless of whether it is identifiable cash 8 15 proceeds. 8 16 (3) If the crop is processed by the contractor, 8 17 the lien shall be on any property of the contractor 8 18 that may be subject to a security interest as provided 8 19 in section 554.9102. 8 20 b. The lien on a crop is created at the time the 8 21 crop is planted and continues for one year after the 8 22 crop is no longer under the authority of the contract 8 23 producer. For purposes of this section, a crop is no 8 24 longer under the authority of the contract producer 8 25 when the crop or a warehouse receipt issued by a 8 26 warehouse operator licensed under chapter 203C for 8 27 grain from the crop is no longer under the custody or 8 28 control of the contract producer. 8 29 Sec. 16. NEW SECTION. 579B.4 PRESERVING THE LIEN 8 30 – FILING REQUIREMENTS. 8 31 1. In order to preserve a lien created pursuant to 8 32 section 579B.3, a contract producer must file in the 8 33 office of the secretary of state a lien statement on a 8 34 form prescribed by the secretary of state. If the 8 35 lien arises out of producing livestock or raw milk, 8 36 the contract producer must file the lien within forty- 8 37 five days after the day that the livestock first 8 38 arrives at the contract livestock facility. If the 8 39 lien arises out of producing a crop, the contract 8 40 producer must file the lien within forty-five days 8 41 after the day that the crop is first planted. The 8 42 secretary of state shall charge a fee of not more than 8 43 ten dollars for filing the statement. The secretary 8 44 of state may adopt rules pursuant to chapter 17A for 8 45 the electronic filing of the statements. 8 46 2. The statement must include all of the 8 47 following: 8 48 a. An estimate of the amount owed pursuant to the 8 49 production contract. 8 50 b. The date when the livestock arrives at the 9 1 contract livestock facility or the date when the crop 9 2 was planted. 9 3 c. The estimated duration of the period when the 9 4 commodity will be under the authority of the contract 9 5 producer. 9 6 d. The name of the party to the production 9 7 contract whose commodity is produced pursuant to the 9 8 production contract. 9 9 e. The description of the location of the contract 9 10 operation, by county and township. 9 11 f. The printed name and signature of the person 9 12 filing the form. 9 13 3. Except as provided in chapter 581, a lien 9 14 created under this section until preserved and a lien 9 15 preserved under this section is superior to and shall 9 16 have priority over a conflicting lien or security 9 17 interest in the commodity, including a lien or 9 18 security interest that was perfected prior to the 9 19 creation of the lien under this chapter. 9 20 Sec. 17. NEW SECTION. 579B.5 ENFORCEMENT. 9 21 Before a commodity leaves the authority of the 9 22 contract producer as provided in section 579B.3, the 9 23 contract producer may foreclose a lien created in that 9 24 section in the manner provided for the foreclosure of 9 25 secured transactions as provided in sections 554.9504, 9 26 554.9506, and 554.9507. After the commodity is no 9 27 longer under the authority of the contract producer, 9 28 the contract producer may enforce the lien in the 9 29 manner provided in chapter 554, article 9, part 5. 9 30 Sec. 18. NEW SECTION. 579B.6 WAIVERS 9 31 UNENFORCEABLE. 9 32 A waiver of a right created by this chapter, 9 33 including but not limited to a waiver of the right to 9 34 file a lien pursuant to this chapter, is void and 9 35 unenforceable. This section does not affect other 9 36 provisions of a contract, including a production 9 37 contract or a related document, policy, or agreement 9 38 which can be given effect without the voided 9 39 provision. 9 40 Sec. 19. NEW SECTION. 579B.7 ALTERNATE LIEN 9 41 PROCEDURE. 9 42 A person who is a custom cattle feedlot operator as 9 43 defined in section 579A.1 may file and enforce a lien 9 44 as a contract producer under this chapter or chapter 9 45 579A, but not both. 9 46 Sec. 20. Section 714.8, Code 1999, is amended by 9 47 adding the following new subsection: 9 48 NEW SUBSECTION. 17. A contractor who executes a 9 49 production contract that includes a confidentiality 9 50 provision in violation of section 8E.3. 10 1 Sec. 21. SEVERABILITY. If any provision of this 10 2 Act or the application of this Act to any person or 10 3 circumstance is held invalid, the invalidity does not 10 4 affect other provisions or applications of this Act 10 5 which shall be given effect without the invalid 10 6 provision or application, and to this end the 10 7 provisions of this Act are severable. 10 8 Sec. 22. DIRECTIONS TO CODE EDITOR. The Code 10 9 editor may codify the provisions of chapter 8E as 10 10 enacted in this Act into another chapter or combine 10 11 the provisions of chapter 8E as enacted in this Act 10 12 with the provisions of chapter 172C as enacted in 1999 10 13 Iowa Acts, Senate File 436, into one chapter with 10 14 multiple subchapters, if Senate File 436 is enacted by 10 15 the 1999 Session of the Seventy-eighth General 10 16 Assembly. 10 17 Sec. 23. EFFECTIVE DATE. This Act, being deemed 10 18 of immediate importance, takes effect upon enactment." 10 19 10 20 10 21 10 22 MERLIN E. BARTZ 10 23 HF 322.209 78 10 24 da/gg
Text: S03446 Text: S03448 Text: S03400 - S03499 Text: S Index Bills and Amendments: General Index Bill History: General Index
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