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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