Text: HF02404 Text: HF02406 Text: HF02400 - HF02499 Text: HF Index Bills and Amendments: General Index Bill History: General Index
PAG LIN 1 1 Section 1. PURPOSE. The purpose of this Act is to promote 1 2 economic and agricultural prosperity in this state, by 1 3 providing opportunities for leading commercial enterprises 1 4 that are engaged in the advancement of animal and human health 1 5 sciences to acquire and hold agricultural land with certain 1 6 restrictions and in a manner that complements rather than 1 7 competes with the production of grain and livestock on farms 1 8 in this state, and promises to enhance this state's preeminent 1 9 position in agriculture. 1 10 Sec. 2. Section 10B.4A, Code 2001, is amended by adding 1 11 the following new unnumbered paragraph: 1 12 NEW UNNUMBERED PARAGRAPH. A person required to file a 1 13 report pursuant to this chapter is not required to register 1 14 with the secretary of state as otherwise required in any 1 15 chapter enumerated in this section. 1 16 Sec. 3. NEW SECTION. 10D.1 DEFINITIONS. 1 17 As used in this section, unless the context otherwise 1 18 requires: 1 19 1. "Agricultural land" means land suitable for use in 1 20 farming as defined in section 9H.1. 1 21 2. "Baby chicks" means the same as defined in section 1 22 168.1. 1 23 3. "Qualified enterprise" or "enterprise" means a domestic 1 24 or foreign corporation subject to chapter 490, a nonprofit 1 25 corporation organized under chapter 504A, a limited liability 1 26 company as defined in section 490A.102, a cooperative 1 27 association as defined in section 10.1, or a foreign business 1 28 as defined in section 567.1. 1 29 Sec. 4. NEW SECTION. 10D.2 QUALIFIED ENTERPRISES 1 30 AGRICULTURAL LAND INTERESTS. 1 31 Notwithstanding any other provision of law, a qualified 1 32 enterprise may acquire or hold an ownership or leasehold 1 33 interest in agricultural land as long as the qualified 1 34 enterprise complies with all of the following requirements: 1 35 1. The enterprise files a notice with the secretary of 2 1 state not later than June 30, 2002. The notice shall be a 2 2 simple statement providing the name of the enterprise and the 2 3 address of the enterprise's registered office or registered 2 4 agent. The notice shall indicate that the enterprise intends 2 5 to acquire or hold an interest in agricultural land under this 2 6 chapter. The secretary of state shall file the notice 2 7 together with reports required for the enterprise as required 2 8 in chapter 10B. 2 9 2. The enterprise holds a total of not more than one 2 10 thousand two hundred eighty acres of agricultural land. The 2 11 enterprise must hold not more than eight hundred acres of 2 12 agricultural land in any one county. 2 13 3. The enterprise only holds the agricultural land for a 2 14 designated or incidental use. 2 15 a. A designated use must relate to producing baby chicks 2 16 or fertile chicken eggs for any of the following purposes: 2 17 (1) Sale or resale as breeding stock or breeding stock 2 18 progeny. 2 19 (2) Research, testing, or experimentation related to the 2 20 genetic characteristics of chickens. 2 21 (3) The production and sale of products using 2 22 biotechnological systems or techniques for purposes of 2 23 manufacturing animal vaccine, pharmaceutical, or nutriceutical 2 24 products. 2 25 b. An incidental use must be for a purpose related to the 2 26 sale of a surplus commodity or cull animal that is produced or 2 27 kept on the agricultural land, or to the sale of any by- 2 28 product that is produced as part of a designated use. 2 29 Sec. 5. NEW SECTION. 10D.3 ENFORCEMENT PENALTIES. 2 30 1. The office of attorney general or a county attorney 2 31 shall enforce the provisions of this chapter. 2 32 2. A person who violates a provision of this chapter shall 2 33 be subject to all of the following: 2 34 a. The person shall be assessed a civil penalty of not 2 35 more than twenty-five thousand dollars. Each day that a 3 1 violation exists constitutes a separate offense. 3 2 b. The person shall be divested of any land held in 3 3 violation of this chapter within one year after judgment. The 3 4 court may determine the method of divesting an interest held 3 5 by a person found to be in violation of this chapter. A 3 6 financial gain realized by the person that disposes of an 3 7 interest held in violation of this chapter shall be forfeited. 3 8 c. The person shall pay all court costs and fees 3 9 associated with any enforcement action which shall be taxed as 3 10 court costs. 3 11 3. If the attorney general is the prevailing party, the 3 12 moneys required to be paid or forfeited by a person who 3 13 violates a provision of this chapter shall be deposited in the 3 14 general fund of the state. If the county attorney is the 3 15 prevailing party, the moneys shall be deposited in the general 3 16 fund of the county. 3 17 4. The courts of this state may prevent and restrain 3 18 violations of this chapter through the issuance of an 3 19 injunction. The attorney general or a county attorney shall 3 20 institute suits on behalf of the state to prevent and restrain 3 21 violations of this chapter. 3 22 5. A person who is in violation of this chapter shall not 3 23 be subject to an enforcement action other than as provided in 3 24 this section. 3 25 Sec. 6. EFFECTIVE DATE. This Act, being deemed of 3 26 immediate importance, takes effect upon enactment. 3 27 EXPLANATION 3 28 This bill creates new Code chapter 10D. According to the 3 29 bill, the purpose of the new Code chapter is to promote 3 30 economic and agricultural prosperity in this state, by 3 31 providing opportunities for leading commercial enterprises 3 32 that are engaged in the advancement of animal and human health 3 33 sciences. 3 34 Code chapter 9H generally prohibits corporate entities from 3 35 holding an interest in agricultural land used in farming. 4 1 Code chapter 567 also prohibits nonalien residents and foreign 4 2 governments from holding such an interest. 4 3 The bill provides that notwithstanding any other provision 4 4 of law, a qualified enterprise may hold an interest in 4 5 agricultural land for a designated or incidental use. A 4 6 qualified enterprise is a domestic or foreign corporation, a 4 7 nonprofit corporation, a limited liability company, a 4 8 cooperative association, or a foreign business. Code section 4 9 567.1 defines a foreign business as a corporation incorporated 4 10 under the laws of a foreign country, or a business entity 4 11 whether or not incorporated, in which a majority interest is 4 12 owned directly or indirectly by nonresident aliens. 4 13 The bill provides that a qualified enterprise must comply 4 14 with certain requirements in order to hold agricultural land 4 15 in this state. It must file a notice with the secretary of 4 16 state by June 30, 2002, declaring an intention to acquire or 4 17 hold agricultural land under the Code chapter. It can hold a 4 18 total of not more than 1,280 acres of agricultural land, but 4 19 not more than 800 acres in any one county. In addition it can 4 20 only hold the agricultural land for a designated or incidental 4 21 use. A designated use must relate to producing baby chicks or 4 22 fertile chicken eggs for sale or resale as breeding stock or 4 23 breeding stock progeny; research related to the genetic 4 24 characteristics of chickens; or the production and sale of 4 25 products using biotechnological systems or techniques for use 4 26 in the manufacture of animal vaccine, pharmaceutical, or 4 27 nutriceutical products. An incidental use must be the sale of 4 28 a surplus commodity that is produced or kept on the 4 29 agricultural land, or the sale of any by-product that is 4 30 produced as part of a designated use. 4 31 The bill provides that the attorney general or a county 4 32 attorney is responsible for enforcing the provision of the new 4 33 Code chapter. The bill provides that a person violating the 4 34 provisions of the Code chapter is subject to a civil penalty 4 35 of not more than $25,000 and must be divested of any land held 5 1 in violation of the chapter. Each day that a violation exists 5 2 constitutes a separate violation. The person must pay all 5 3 court costs and fees. The bill provides that a court may 5 4 grant an injunction in order to restrain violations of the 5 5 chapter's provisions. 5 6 The bill also amends Code chapter 10B, which provides for 5 7 reporting of agricultural land holdings. The bill provides 5 8 that a person required to file a report pursuant to the Code 5 9 chapter is not required to register with the secretary of 5 10 state under Code chapter 567. 5 11 The bill takes effect upon enactment. 5 12 LSB 6635HV 79 5 13 da/cf/24
Text: HF02404 Text: HF02406 Text: HF02400 - HF02499 Text: HF Index Bills and Amendments: General Index Bill History: General Index
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