Text: HSB00642 Text: HSB00644 Text: HSB00600 - HSB00699 Text: HSB 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.4, subsection 2, Code 2001, is amended
1 11 by adding the following new paragraph:
1 12 NEW PARAGRAPH. h. If the reporting entity is a qualified
1 13 enterprise, as provided in chapter 10D, the total amount of
1 14 commercial sales of products from a designated or incidental
1 15 use as provided for in section 10D.2.
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. "Actively engaged in farming" means the same as defined
1 20 in section 10.1.
1 21 2. "Agricultural land" means land suitable for use in
1 22 farming as defined in section 9H.1.
1 23 3. "Baby chicks" means the same as defined in section
1 24 168.1.
1 25 4. "Qualified enterprise" or "enterprise" means a domestic
1 26 or foreign corporation subject to chapter 490, a nonprofit
1 27 corporation organized under chapter 504A, a limited liability
1 28 company as defined in section 490A.102, a cooperative
1 29 association as defined in section 10.1, or a foreign business
1 30 as defined in section 567.1.
1 31 Sec. 4. NEW SECTION. 10D.2 QUALIFIED ENTERPRISES –
1 32 AGRICULTURAL LAND INTERESTS.
1 33 Notwithstanding any other provision of law, a qualified
1 34 enterprise may acquire or hold an ownership or leasehold
1 35 interest in agricultural land as long as the qualified
2 1 enterprise complies with all of the following requirements:
2 2 1. The enterprise holds a total of not more than one
2 3 thousand two hundred eighty acres of agricultural land.
2 4 2. The enterprise only holds the agricultural land for a
2 5 designated or incidental use.
2 6 a. A designated use must relate to producing baby chicks
2 7 or fertile chicken eggs for any of the following purposes:
2 8 (1) Sale or resale as breeding stock or breeding stock
2 9 progeny.
2 10 (2) Research, testing, or experimentation required to
2 11 modify the genetic characteristics of chickens.
2 12 (3) The production and sale of products using
2 13 biotechnological systems or techniques for purposes of
2 14 manufacturing biological, pharmaceutical, or nutriceutical
2 15 products.
2 16 b. An incidental use must be for a purpose related to the
2 17 sale of a surplus commodity that is produced or kept on the
2 18 agricultural land, or to the sale of any by-product that is
2 19 produced as part of a designated use.
2 20 Sec. 5. NEW SECTION. 10D.3 ENFORCEMENT – PENALTIES.
2 21 1. The office of attorney general or a county attorney
2 22 shall enforce the provisions of this chapter.
2 23 2. A person who violates a provision of this chapter shall
2 24 be subject to all of the following:
2 25 a. The person shall be assessed a civil penalty of not
2 26 more than twenty-five thousand dollars. Each day that a
2 27 violation exists constitutes a separate offense.
2 28 b. The person shall be divested of any land held in
2 29 violation of this chapter within one year after judgment. The
2 30 court may determine the method of divesting an interest held
2 31 by a person found to be in violation of this chapter. A
2 32 financial gain realized by the person that disposes of an
2 33 interest held in violation of this chapter shall be forfeited.
2 34 c. The person shall pay all court costs and attorney fees
2 35 associated with any enforcement action which shall be taxed as
3 1 court costs.
3 2 3. If the attorney general is the prevailing party, the
3 3 moneys required to be paid or forfeited by a person who
3 4 violates a provision of this chapter shall be deposited in the
3 5 general fund of the state. If the county attorney is the
3 6 prevailing party, the moneys shall be deposited in the general
3 7 fund of the county.
3 8 4. The courts of this state may prevent and restrain
3 9 violations of this chapter through the issuance of an
3 10 injunction. The attorney general or a county attorney shall
3 11 institute suits on behalf of the state to prevent and restrain
3 12 violations of this chapter.
3 13 Sec. 6. EFFECTIVE DATE. This Act, being deemed of
3 14 immediate importance, takes effect upon enactment.
3 15 EXPLANATION
3 16 This bill creates new Code chapter 10D. According to the
3 17 bill, the purpose of the new Code chapter is to promote
3 18 economic and agricultural prosperity in this state, by
3 19 providing opportunities for leading commercial enterprises
3 20 that are engaged in the advancement of animal and human health
3 21 sciences.
3 22 Code chapter 9H generally prohibits corporate entities from
3 23 holding an interest in agricultural land used in farming.
3 24 Code chapter 567 also prohibits nonalien residents and foreign
3 25 governments from holding such an interest.
3 26 The bill provides that notwithstanding any other provision
3 27 of law, a qualified enterprise may hold an interest in
3 28 agricultural land for a designated or incidental use. A
3 29 qualified enterprise is a domestic or foreign corporation, a
3 30 nonprofit corporation, a limited liability company, a
3 31 cooperative association, or a foreign business. Code section
3 32 567.1 defines a foreign business as a corporation incorporated
3 33 under the laws of a foreign country, or a business entity
3 34 whether or not incorporated, in which a majority interest is
3 35 owned directly or indirectly by nonresident aliens.
4 1 The bill provides that a qualified enterprise must comply
4 2 with certain requirements in order to hold agricultural land
4 3 in this state. It can hold a total of not more than 1,280
4 4 acres of agricultural land. In addition it can only hold the
4 5 agricultural land for a designated or incidental use. A
4 6 designated use must relate to producing baby chicks or fertile
4 7 chicken eggs for sale or resale as breeding stock or breeding
4 8 stock progeny; research required to modify the genetic
4 9 characteristics of chickens; or the production and sale of
4 10 products using biotechnological systems or techniques for use
4 11 in the manufacture of biological, pharmaceutical, or
4 12 nutriceutical products. An incidental use must be the sale of
4 13 a surplus commodity that is produced or kept on the
4 14 agricultural land, or the sale of any by-product that is
4 15 produced as part of a designated use.
4 16 The bill provides that the attorney general or a county
4 17 attorney is responsible for enforcing the provision of the new
4 18 Code chapter. The bill provides that a person violating the
4 19 provisions of the Code chapter is subject to a civil penalty
4 20 of not more than $25,000 and must be divested of any land held
4 21 in violation of the chapter. Each day that a violation exists
4 22 constitutes a separate violation. The person must pay all
4 23 court costs and attorney fees. The bill provides that a court
4 24 may grant an injunction in order to restrain violations of the
4 25 chapter's provisions.
4 26 The bill also amends Code chapter 10B, which provides for
4 27 reporting of agricultural land holdings. The bill provides
4 28 that along with other information required to be reported, an
4 29 enterprise must report the total amount of commercial sales
4 30 from commercial sales of products from a designated or
4 31 incidental use.
4 32 LSB 6635YC 79
4 33 da/cf/24
Text: HSB00642 Text: HSB00644 Text: HSB00600 - HSB00699 Text: HSB Index Bills and Amendments: General Index Bill History: General Index
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