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PAG LIN 1 1 SUBCHAPTER 1 1 2 GENERAL PROVISIONS 1 3 Section 1. NEW SECTION. 202B.101 SHORT TITLE 1 4 DECLARATION OF POLICY STATUTORY CONSTRUCTION. 1 5 1. This chapter shall be known and may be cited as the 1 6 "Agricultural Fair Contracting Act". 1 7 2. The general assembly finds and declares that the 1 8 traditional system of producing agricultural commodities for 1 9 sale in open markets is in the process of undergoing a rapid 1 10 transformation which has reduced the independence of 1 11 agricultural producers and created a vast disparity in their 1 12 bargaining power and access to market information when 1 13 executing contracts for the production and sale of commodities 1 14 with contractors of agricultural commodities. The purpose of 1 15 this chapter is to restore healthy competition in agriculture 1 16 for the benefit of both contract producers and consumers. 1 17 This chapter shall be liberally construed in order to 1 18 effectuate this purpose. 1 19 Sec. 2. NEW SECTION. 202B.102 DEFINITIONS. 1 20 As used in this chapter, unless the context otherwise 1 21 requires: 1 22 1. "Active contractor" means a person who owns a commodity 1 23 that is produced by a contract producer at the contract 1 24 producer's contract operation pursuant to a production 1 25 contract executed pursuant to section 202B.103. 1 26 2. "Agricultural contract" means a production contract or 1 27 a marketing contract. 1 28 3. "Agricultural contract document" means an agricultural 1 29 contract or a disclosure statement required to be attached to 1 30 an agricultural contract as provided in subchapter 2. 1 31 4. "Agricultural land" means land located in this state 1 32 which is used as part of an agricultural operation to produce 1 33 a commodity. "Agricultural land" includes any improvements or 1 34 fixtures associated with agricultural production that are 1 35 located on the land. 2 1 5. "Agricultural operation" means an enterprise where an 2 2 agricultural producer produces a commodity for sale in 2 3 commercial markets, and that involves maintaining a livestock 2 4 operation or crop operation. A livestock operation may keep 2 5 the livestock in a confinement building or other roofed 2 6 structure, open feedlot, or an area which is used for the 2 7 raising of crops or other vegetation, and upon which livestock 2 8 are allowed to feed or graze. 2 9 6. "Agricultural producer" means a person who produces a 2 10 commodity at the person's agricultural operation. 2 11 7. "Attorney general" means the office of attorney general 2 12 as established in chapter 13. 2 13 8. "Capital investment" means an investment associated 2 14 with an agricultural operation in which financing is provided 2 15 in order to do any of the following: 2 16 a. Construct, install, or expand a structure, such as a 2 17 building or other roofed area; fencing; a manure control 2 18 system; or a manure storage structure as defined in section 2 19 455B.171. 2 20 b. Acquire, including by purchase or lease, machinery or 2 21 equipment which has a useful life in excess of one year, 2 22 regardless of whether the machinery or equipment is motorized 2 23 or fixed to a structure, and includes but is not limited to an 2 24 implement of husbandry as defined in section 321.1; or a 2 25 device used to control temperature, odor, or pollution. 2 26 9. "Capital investment requirement" means a provision in a 2 27 production contract or arising from the performance of a 2 28 production contract that requires a contract producer to make 2 29 capital investments in an agricultural operation. 2 30 10. "Capital investment value" means the total dollar 2 31 amount that is required to be expended by the contract 2 32 producer in order to satisfy the capital investment 2 33 requirements provided in a production contract. 2 34 11. "Commodity" means the following: 2 35 a. For livestock: the animal, any part of the animal, or 3 1 items produced by the animal in unprocessed form. 3 2 b. For crops: the plant, any part of the plant, or items 3 3 produced by the plant having commercial value in an 3 4 unprocessed form. 3 5 12. "Contract crop operation" means an agricultural 3 6 operation where a crop is produced according to a production 3 7 contract executed pursuant to section 202B.103 by a contract 3 8 producer who holds a legal interest in the agricultural 3 9 operation, including the crop field. 3 10 13. "Contract input" means a commodity or an organic or 3 11 synthetic substance or compound that is used to produce a 3 12 commodity including but not limited to any of the following: 3 13 a. For livestock: animals; semen, embryos, or oocytes for 3 14 use in breeding; or materials or services used to provide for 3 15 the care and feeding of the livestock, including but not 3 16 limited to feed, nutritional supplements, medication, or 3 17 bedding. 3 18 b. For crops: seeds or plants; or a fertilizer or soil 3 19 conditioner as defined in section 200.3, or pesticide as 3 20 defined in section 206.2. 3 21 14. "Contract livestock operation" means an agricultural 3 22 operation where livestock are produced according to a 3 23 production contract executed pursuant to section 202B.103 by a 3 24 contract producer who holds a legal interest in the 3 25 agricultural operation. 3 26 15. "Contract operation" means an agricultural operation 3 27 which is a contract livestock operation or contract crop 3 28 operation. 3 29 16. "Contract producer" means a person who holds a legal 3 30 interest in a contract operation and who produces a commodity 3 31 according to an agricultural contract executed pursuant to 3 32 section 202B.103. 3 33 17. "Contractor" means any of the following: 3 34 a. An active contractor or a passive contractor who 3 35 executes a production contract as provided in section 4 1 202B.103. 4 2 b. A processor who executes a marketing contract as 4 3 provided in section 202B.103. 4 4 18. "Crop" means a seed or germinating or developing 4 5 plant, which is used for food, animal feed, fiber, oil, 4 6 alcohol, pharmaceuticals, or nutriceuticals. "Crop" includes 4 7 but is not limited to alfalfa, barley, buckwheat, corn, flax, 4 8 forage, millet, oats, popcorn, rye, sorghum, soybeans, 4 9 sunflowers, wheat, and grasses used for forage or silage. 4 10 19. "Livestock" means a gestating or born animal belonging 4 11 to the bovine, caprine, equine, ovine, or porcine species, 4 12 ostriches, rheas, emus; farm deer, as defined in section 4 13 481A.1; or poultry. 4 14 20. "Marketing contract" means an oral or written 4 15 agreement executed between a processor and a contract producer 4 16 pursuant to section 202B.103 in which the processor purchases 4 17 a commodity from a contract producer, if the commodity is 4 18 produced as part of the contract producer's agricultural 4 19 operation. 4 20 21. "Passive contractor" means a person who furnishes 4 21 management services to a contract producer, and who does not 4 22 own a commodity that is produced by the contract producer at 4 23 the contract producer's contract operation according to a 4 24 production contract executed pursuant to section 202B.103. 4 25 22. "Processing" means turning a commodity into a product 4 26 by physical or chemical modification, including but not 4 27 limited to slaughtering, cutting, canning, freezing, drying, 4 28 dehydrating, cooking, pressing, powdering, packaging, 4 29 repacking, baking, heating, mixing, grinding, churning, 4 30 separating, extracting, fermenting, eviscerating, preserving, 4 31 jarring, or brewing. 4 32 23. "Processor" means a person who is engaged in the 4 33 business of processing a commodity, if the products derived 4 34 from a commodity are directly or indirectly to be offered for 4 35 resale or for public consumption. 5 1 24. "Produce" means to do any of the following: 5 2 a. For a livestock operation, provide for the feed or care 5 3 of livestock on agricultural land, including but not limited 5 4 to providing for the handling, health, and security of 5 5 livestock maintained at the operation; and the storage and 5 6 disposal of manure originating from the operation. If the 5 7 livestock are dairy cattle or goats, "produce" includes 5 8 milking the dairy cattle or goats and storing raw milk at the 5 9 contract producer's livestock operation. If the livestock are 5 10 sheep, "produce" includes shearing the sheep and storing the 5 11 wool at the contract producer's livestock operation. If the 5 12 livestock are poultry, "produce" includes collecting and 5 13 storing eggs at the contract producer's livestock facility. 5 14 b. For a crop operation, provide for planting, raising, 5 15 harvesting, or storing a crop as part of the contract crop 5 16 operation on agricultural land. "Produce" includes preparing 5 17 the soil for planting and nurturing the crop on a crop field 5 18 by the application of fertilizers or soil conditioners as 5 19 defined in section 200.3, or pesticides as defined in section 5 20 206.2. 5 21 25. "Production contract" means an oral or written 5 22 agreement executed pursuant to section 202B.103 that provides 5 23 for the production of a commodity or the provision of 5 24 management services relating to the production of a commodity 5 25 by a contract producer. 5 26 26. "Termination action" means an action by a contractor 5 27 who is a party to a production contract based on an alleged 5 28 breach of contract by a contract producer who is also a party 5 29 to the contract, if the contractor does any of the following: 5 30 a. Ceases performance under the production contract in a 5 31 manner that would constitute a breach of the contract absent 5 32 the alleged breach of contract by the contract producer. 5 33 b. Initiates a civil proceeding seeking damages. 5 34 c. Seizes, levies, attaches, garnishes, or executes on 5 35 property of the contract producer or a contract input provided 6 1 under the agricultural contract. 6 2 Sec. 3. NEW SECTION. 202B.103 AGRICULTURAL CONTRACTS 6 3 GOVERNED BY THIS CHAPTER. 6 4 1. This chapter applies to an agricultural contract as 6 5 follows: 6 6 a. For a production contract, the contract must relate to 6 7 the production of a commodity owned by an active contractor 6 8 and produced by a contract producer at the contract producer's 6 9 contract operation, and one of the following must apply: 6 10 (1) A production contract must be executed by an active 6 11 contractor and a contract producer, and the active contractor 6 12 must have sold commodities produced under all production 6 13 contracts for an amount equal to or more than five hundred 6 14 thousand dollars during the active contractor's previous 6 15 fiscal year. 6 16 (2) A production contract must be executed by an active 6 17 contractor and a passive contractor and a contract producer 6 18 for the provision of management services to the contract 6 19 producer in the production of the commodity, and the active 6 20 contractor must have sold commodities produced under all 6 21 production contracts for an amount equal to or more than five 6 22 hundred thousand dollars during the active contractor's 6 23 previous fiscal year. 6 24 (3) A production contract must be executed by a passive 6 25 contractor and a contract producer, and all of the following 6 26 must apply: 6 27 (a) The production contract must provide for management 6 28 services furnished by the passive contractor to the contract 6 29 producer in the production of the commodity. 6 30 (b) The passive contractor must have a contractual 6 31 relationship with the active contractor involving the 6 32 production of the commodity. 6 33 (c) The active contractor must have sold commodities 6 34 produced under all production contracts for an amount equal to 6 35 or more than five hundred thousand dollars during the active 7 1 contractor's previous fiscal year. 7 2 b. For a marketing contract, the contract must relate to 7 3 the processor's purchase of a commodity owned by an 7 4 agricultural producer if the processor purchased commodities 7 5 under all marketing contracts for an amount equal to or more 7 6 than five hundred thousand dollars during the processor's 7 7 previous fiscal year. 7 8 2. This chapter does not apply to a contract involving any 7 9 of the following: 7 10 a. A professional service rendered by a person serving a 7 11 client who is an agricultural producer, such as a person 7 12 licensed as a veterinarian or a holder of a temporary permit 7 13 under chapter 169, a feed supplier, or a crop specialist. 7 14 b. Testing, developing, or producing seeds or plants for 7 15 sale or resale to agricultural producers as seed stock, if the 7 16 sale of the crops or grain which is not sold as seed stock is 7 17 incidental. 7 18 c. Research or experimental activities, if the sale of the 7 19 commodity produced from the agricultural operation is an 7 20 incidental part of the research or experimental activities. 7 21 Sec. 4. NEW SECTION. 202B.104 AGRICULTURAL CONTRACTS 7 22 INTEGRATION. 7 23 An agreement executed between an active contractor and a 7 24 passive contractor and an agreement executed between a passive 7 25 contractor and a contract producer as provided in section 7 26 202B.103 shall be deemed to be part of the same agricultural 7 27 contract. To the extent that provisions remain in force, 7 28 provisions contained in multiple oral or written agreements or 7 29 amendments to agreements executed by the same parties shall be 7 30 deemed to be part of an integrated agricultural contract. All 7 31 related agricultural contract documents shall be deemed to be 7 32 part of the same agricultural contract. 7 33 Sec. 5. NEW SECTION. 202B.105 NOTICE REQUIREMENTS. 7 34 A notice required to be delivered under this chapter to a 7 35 party to an agricultural contract shall be delivered by 8 1 restricted certified mail or by hand with receipt of delivery, 8 2 unless the manner of delivery is otherwise specified in an 8 3 agricultural contract executed by the parties. 8 4 Sec. 6. NEW SECTION. 202B.106 OBLIGATION OF GOOD FAITH. 8 5 An obligation of good faith, as provided in section 8 6 554.1203 of the uniform commercial code, is imposed on all 8 7 parties to an agricultural contract with respect to the 8 8 performance and enforcement of its provisions. 8 9 SUBCHAPTER 2 8 10 AGRICULTURAL CONTRACT DOCUMENTS 8 11 Sec. 7. NEW SECTION. 202B.201 AGRICULTURAL CONTRACT 8 12 DOCUMENTS READABILITY REQUIREMENTS. 8 13 This section applies to an agricultural contract document 8 14 that is an agricultural contract executed by a contractor or a 8 15 disclosure statement required to be attached to the 8 16 agricultural contract, as provided in this subchapter. 8 17 1. An agricultural contract document shall be readable and 8 18 understandable. In order to comply with this subsection, the 8 19 agricultural contract shall be all of the following: 8 20 a. Printed in a legible font type in at least twelve point 8 21 type size. 8 22 b. Appropriately divided into captioned sections. 8 23 c. Written in a clear and coherent style. 8 24 2. An agricultural contract is not in violation of this 8 25 section because of any of the following: 8 26 a. The agricultural contract uses language, including 8 27 terms or phrases, punctuation, or grammar, that is any of the 8 28 following: 8 29 (1) Required, recommended, or endorsed by federal or state 8 30 law. 8 31 (2) Understandable by a person of average intelligence, 8 32 education, and experience in producing or marketing the same 8 33 type of commodity that is required to be produced or marketed 8 34 under the agricultural contract. 8 35 (3) Customarily used by agricultural producers who produce 9 1 or market the same type of commodity that is required to be 9 2 produced or marketed under the agricultural contract. 9 3 b. The agricultural contract is prepared in a form or 9 4 utilizes a style that is required, recommended, or endorsed by 9 5 federal or state law. 9 6 Sec. 8. NEW SECTION. 202B.202 DISCLOSURE STATEMENT 9 7 REQUIRED. 9 8 A contractor shall not execute a written agricultural 9 9 contract unless the agricultural contract as executed by an 9 10 agricultural producer contains a disclosure statement as 9 11 provided in this section. 9 12 1. The disclosure statement may contain one or more pages 9 13 and shall be attached to the front of the agricultural 9 14 contract. 9 15 2. The disclosure statement shall include all of the 9 16 following: 9 17 a. A general notice that shall read as follows: 9 18 ATTENTION 9 19 READ YOUR CONTRACT CAREFULLY BEFORE SIGNING 9 20 This disclosure statement is required under Iowa's 9 21 agricultural fair contracting Act (Iowa Code chapter 202B) and 9 22 provides only a brief summary of the provisions in your 9 23 contract. This disclosure statement is not the contract and 9 24 only the terms of the actual contract are legally binding. 9 25 The contract itself sets forth, in detail, the rights and 9 26 obligations of both you as a contract producer and the 9 27 contractor, including your right to review and cancel this 9 28 contract. If you have any questions or doubts, you are 9 29 advised to discuss them with your attorney prior to executing 9 30 this contract. 9 31 b. The name of the contractor who is a party to the 9 32 contract. If the agricultural contract is a production 9 33 contract, the disclosure statement shall include the name of 9 34 any active contractor to whom a passive contractor has 9 35 contracted in order to carry out the production contract. 10 1 c. A summary of the terms and conditions of the 10 2 agricultural contract, including a description of the material 10 3 risks that the agricultural producer assumes by executing the 10 4 agricultural contract, and provisions for renegotiating the 10 5 agricultural contract. 10 6 d. The duration of the agricultural contract, including 10 7 the date that the contract will commence and terminate. 10 8 e. The party responsible for addressing environmental 10 9 damages caused by the agricultural operation, including the 10 10 party responsible for bearing any civil or criminal penalty 10 11 imposed by the state or federal government. 10 12 f. All factors used to determine compensation paid to the 10 13 agricultural producer, including but not limited to any 10 14 formula used to calculate payment based on quality or quantity 10 15 of commodities produced or sold. 10 16 g. Any capital investment requirements. 10 17 h. The party who is responsible for obtaining and 10 18 complying with a permit or certification requirements by a 10 19 local government or the state or federal government, including 10 20 requirements imposed under chapter 206 or chapter 455B. 10 21 i. For a production contract, an explanation of the 10 22 contract producer's right to review and cancel the contract as 10 23 provided in section 202B.302. 10 24 Sec. 9. NEW SECTION. 202B.203 TERMS AND CONDITIONS. 10 25 A contractor shall not execute a written agricultural 10 26 contract unless the agricultural contract, as executed by the 10 27 contract producer, complies with this section. 10 28 1. The agricultural contract must include all of the 10 29 following major provisions: 10 30 a. The names of all parties to the contract. 10 31 b. Definitions for key words contained in the contract. 10 32 c. Provisions governing the termination, cancellation, 10 33 renewal, and amendment of the contract by any party. 10 34 d. The duties or obligations of each party to perform 10 35 under the contract. 11 1 e. Any provisions subject to change in the contract. 11 2 2. The agricultural contract shall not include any of the 11 3 following: 11 4 a. A provision that constitutes an unfair practice as 11 5 provided in section 202B.303. 11 6 b. A waiver of any right, obligation, or procedure 11 7 provided in this chapter, including but not limited to a 11 8 contract producer's right as provided in section 202B.302, 11 9 unless otherwise specifically allowed to be waived by law. 11 10 c. A requirement providing for any of the following: 11 11 (1) That a dispute must be settled by arbitration in lieu 11 12 of a judicial proceeding. 11 13 (2) That a legal cause of action must be commenced in a 11 14 jurisdiction outside this state. 11 15 (3) That the law of another state must be applied to an 11 16 issue or controversy. 11 17 Sec. 10. NEW SECTION. 202B.204 CAPITAL INVESTMENT 11 18 REQUIREMENTS. 11 19 A contractor shall not provide for a capital investment 11 20 requirement that obligates a contract producer to make new or 11 21 additional capital investments that have a value of twenty 11 22 thousand dollars or more during the period that the existing 11 23 production contract would be effective, unless the contractor 11 24 contributes to satisfying the capital investment requirement. 11 25 In order to make a contribution, the contractor may provide a 11 26 portion of the capital investment value or offset other 11 27 compensation or modifications to the terms of the production 11 28 contract. Each party to the contract must execute the 11 29 amendment providing a contribution that constitutes an 11 30 acceptable and satisfactory consideration for satisfying the 11 31 capital investment requirement. 11 32 Sec. 11. NEW SECTION. 202B.205 PROVISIONS VOID AND 11 33 UNENFORCEABLE. 11 34 A provision of an agricultural contract that contains a 11 35 provision in violation of this subchapter is void and 12 1 unenforceable. However, this section does not affect other 12 2 provisions of the agricultural contract, including any 12 3 agricultural contract document or any other related document, 12 4 policy, or agreement which can be given effect without the 12 5 voided provision. 12 6 SUBCHAPTER 3 12 7 CONTRACT PRODUCER RIGHTS 12 8 Sec. 12. NEW SECTION. 202B.301 CONTRACT PRODUCER RIGHTS 12 9 DEFINED. 12 10 As used in this subchapter, "contract producer right" means 12 11 a right of a contract producer to do any of the following: 12 12 1. Join or belong to, or to refrain from joining or 12 13 belonging to, an association of producers. 12 14 2. Enter into a membership agreement or marketing contract 12 15 with an association of agricultural producers, a processor, or 12 16 another agricultural producer, and the right of the contract 12 17 producer to exercise contractual rights under such a 12 18 membership agreement or marketing contract. 12 19 3. Make a statement or provide information, including to 12 20 the attorney general, another state agency, the United States 12 21 secretary of agriculture, or to a law enforcement agency 12 22 regarding alleged improper actions or violations of law by a 12 23 contractor. This subsection does not apply to a contract 12 24 producer making a statement or providing information in 12 25 violation of statute or court order. This subsection also 12 26 does not apply to a statement or information which is 12 27 slanderous or libelous, including as provided under chapter 12 28 659. 12 29 4. Disclose information contained in an agricultural 12 30 contract notwithstanding any provision requiring that the 12 31 information is confidential. 12 32 5. Create, perfect, continue, terminate, or enforce a 12 33 security interest, including but not limited to filing a 12 34 financing statement under chapter 554, or a lien under chapter 12 35 579B. 13 1 6. Review or cancel a production contract as provided in 13 2 section 202B.302. 13 3 7. Enforce any provision of this chapter or rule adopted 13 4 pursuant to this chapter that provides a right or grants a 13 5 protection to an agricultural producer. 13 6 Sec. 13. NEW SECTION. 202B.302 RIGHT TO REVIEW AND 13 7 CANCEL. 13 8 1. A contract producer may cancel a production contract by 13 9 delivering a written cancellation notice to the contractor who 13 10 is a party to the production contract. The contract producer 13 11 may deliver the cancellation notice after the day that the 13 12 contract producer executes the production contract but must 13 13 deliver it earlier than the following: 13 14 a. Within three business days after the production 13 15 contract is executed by the contract producer, or before a 13 16 later cancellation deadline if a later deadline is specified 13 17 in the production contract. 13 18 b. Before the time that the contract producer accepts a 13 19 contract input. 13 20 2. a. Following delivery of the cancellation notice, all 13 21 the following shall apply: 13 22 (1) Each party shall return any compensation made by a 13 23 party under the production contract and any negotiable 13 24 instrument executed by a party. 13 25 (2) Any security interest arising out of the production 13 26 contract is terminated upon the return of any compensation 13 27 made by the party taking the security interest. A party 13 28 filing a lien or financing statement shall terminate the lien 13 29 or financing statement. 13 30 b. The parties shall comply with the requirements of this 13 31 subsection within forty-five days following the contractor's 13 32 receipt of the cancellation notice, unless the production 13 33 contract specifies a shorter period of time. 13 34 3. This section does not apply to restrict the right of a 13 35 contract producer to terminate performance of a production 14 1 contract based on breach of contract by a contractor. 14 2 Sec. 14. NEW SECTION. 202B.303 CONTRACT PRODUCER RIGHTS 14 3 UNFAIR PRACTICES. 14 4 A contractor commits an unfair practice if the contractor 14 5 knowingly engages or permits any employee or agent of the 14 6 contractor to engage in any of the following: 14 7 1. Take any action in order to coerce, intimidate, 14 8 disadvantage, retaliate against, or discriminate against a 14 9 contract producer because the contract producer exercises, or 14 10 attempts to exercise, a contract producer's right, including 14 11 an action affecting any of the following: 14 12 a. The execution, termination, extension, or renewal of an 14 13 agricultural contract. 14 14 b. The treatment of a contract producer, which may include 14 15 providing discriminatory or preferential terms in an 14 16 agricultural contract or interpreting terms of an existing 14 17 agricultural contract in a discriminatory or preferential 14 18 manner. The terms may relate to the price paid for a 14 19 commodity; the quality or the quantity of a commodity 14 20 demanded; or financing, including but not limited to capital 14 21 investment requirements. 14 22 c. The grant of a reward or imposition of a penalty, 14 23 including the denial of a reward. The reward or penalty may 14 24 be in any form, including, but not limited to, financial 14 25 rewards or penalties. Financial rewards or penalties may 14 26 relate to loans, bonuses, or inducements. 14 27 d. Alter the quality, quantity, or delivery times of 14 28 contract inputs provided to the contract producer. 14 29 2. Provide false information to the contract producer, 14 30 which may include false information relating to any of the 14 31 following: 14 32 a. An agricultural producer with whom the contract 14 33 producer associates or an association of agricultural 14 34 producers or an agricultural organization with which the 14 35 contract producer is affiliated, including but not limited to 15 1 any of the following: 15 2 (1) The character of the agricultural producer. 15 3 (2) The condition of the finances or the management of the 15 4 association of agricultural producers or agricultural 15 5 organization. 15 6 b. A right of a contract producer provided under this 15 7 chapter or other provision of law, including but not limited 15 8 to chapter 579B. 15 9 3. Refuse, upon request of a contract producer, to provide 15 10 the contract producer statistical information and data used to 15 11 determine compensation paid to the contract producer under a 15 12 production contract, including, but not limited to, feed 15 13 conversion rates, feed analyses, origination and livestock 15 14 breeder history. 15 15 4. Refuse to allow a contract producer or the contract 15 16 producer's designated representative to observe, by actual 15 17 observation at the time of weighing, the weights and measures 15 18 used to determine the contract producer's compensation under a 15 19 production contract. 15 20 5. a. Use the performance of another agricultural 15 21 producer as a basis for compensating the contract producer or 15 22 for instituting a termination action under a production 15 23 contract for the production of livestock. 15 24 b. Refuse, upon request of a contract producer, to provide 15 25 the contract producer with all relevant information requested 15 26 regarding the performance of another agricultural producer 15 27 that is used as a basis for compensating the contract producer 15 28 or for instituting a termination action under a production 15 29 contract for the production of crops. The contract producer 15 30 shall not release information required under this paragraph 15 31 that is a trade secret if the contractor notifies the contract 15 32 producer that the information is a trade secret. The 15 33 contractor must identify specific information as a trade 15 34 secret at the time that the contractor delivers the 15 35 information. If a majority of the information identified as a 16 1 trade secret is not a trade secret, the contract producer is 16 2 not required to consider any of the information a trade 16 3 secret. 16 4 6. Institute a termination action in violation of section 16 5 202B.304. 16 6 Sec. 15. NEW SECTION. 202B.304 PRODUCTION CONTRACTS 16 7 TERMINATION ACTIONS AND RIGHT TO CURE NOTICE. 16 8 1. Except as otherwise provided in this section, a 16 9 contractor who is a party to a production contract shall not 16 10 institute a termination action, unless the contractor provides 16 11 the contract producer who is also a party to the production 16 12 contract with a right to cure. 16 13 2. In order to provide a contract producer with a right to 16 14 cure as required in this section, all of the following must 16 15 apply: 16 16 a. The contractor must deliver a written notice of the 16 17 right to cure to the contract producer. The notice must 16 18 provide for all of the following: 16 19 (1) A statement that the contractor may initiate a 16 20 termination action based on the alleged breach of contract, 16 21 including an explanation of the termination action, and the 16 22 contractor's possible remedies. 16 23 (2) A list of complaints identifying all causes for the 16 24 alleged breach of contract. The list must specify each 16 25 complaint in detail sufficient to allow a reasonable contract 16 26 producer engaged in the same type of agricultural operation to 16 27 cure each complaint listed in the notice. 16 28 (3) The date by which the complaints must be cured in 16 29 order to avoid the termination action. 16 30 b. The contract producer must fail to cure each complaint 16 31 alleged to have caused the breach of contract as listed in the 16 32 notice within thirty days from the receipt of the notice or a 16 33 longer period if specified in the production contract or in 16 34 the notice. 16 35 3. The failure by a contract producer to cure a complaint 17 1 alleged to cause the breach of contract as listed in a notice 17 2 of cure shall not be construed as an admission of a breach of 17 3 contract in a civil cause of action. 17 4 4. A contractor is not required to provide for a right to 17 5 cure as otherwise required in this section, if any of the 17 6 following applies: 17 7 a. The production contract does not contain a capital 17 8 investment requirement or has a capital investment requirement 17 9 with a capital investment value of less than one hundred 17 10 thousand dollars. 17 11 b. The contract producer voluntarily abandons the 17 12 contractual relationship with the contractor. A complete 17 13 failure of the contract producer's performance under the 17 14 production contract shall be deemed to be abandonment. 17 15 c. The contract producer is convicted for an offense of 17 16 fraud or theft committed against the contractor on a date 17 17 after the date that the contractor executed the production 17 18 contract. 17 19 SUBCHAPTER 4 17 20 JUDICIAL REMEDIES 17 21 Sec. 16. NEW SECTION. 202B.401 CHAPTER NOT EXCLUSIVE. 17 22 This chapter does not limit the right of a contract 17 23 producer to raise a claim for relief or defense under common 17 24 law or statute that is otherwise available to the contract 17 25 producer and does not limit the authority of a court to 17 26 provide a remedy in law or equity available to a court, to the 17 27 extent that the claim, defense, or remedy is not based on a 17 28 provision of this chapter. 17 29 Sec. 17. NEW SECTION. 202B.402 PRIVATE CAUSE OF ACTIONS 17 30 COMMENCED UNDER THIS CHAPTER. 17 31 A contract producer who is a real party in interest may 17 32 commence a civil action or raise a claim for relief or defense 17 33 in another civil action, based on a violation of this chapter, 17 34 and may obtain appropriate legal and equitable relief, 17 35 including damages or injunctive relief, as provided in this 18 1 subchapter and the Iowa rules of civil procedure. 18 2 Sec. 18. NEW SECTION. 202B.403 INJUNCTIVE RELIEF. 18 3 In order to obtain injunctive relief, a contract producer 18 4 who commences a civil action as provided in section 202B.402 18 5 is not required to post a bond, prove the absence of an 18 6 adequate remedy at law, or show the existence of special 18 7 circumstances, unless the court for good cause otherwise 18 8 orders. The court may order any form of prohibitory or 18 9 mandatory relief that is appropriate under principles of 18 10 equity, including but not limited to issuing a temporary or 18 11 permanent restraining order. 18 12 Sec. 19. NEW SECTION. 202B.404 ATTORNEY FEES. 18 13 If in a civil action arising out of an agricultural 18 14 contract, in which the contract producer and the contractor 18 15 are parties, and the contract producer prevails, there shall 18 16 be provided in the judgment for the contract producer, and 18 17 entered and taxed as a part of the costs in the case, a 18 18 reasonable sum as compensation to the contract producer's 18 19 attorney, not exceeding the amount provided by law for 18 20 attorney fees as provided in section 625.22 together with the 18 21 costs of the case incurred by the contract producer. 18 22 Sec. 20. NEW SECTION. 202B.405 SPECIAL PROVISIONS FOR 18 23 ILLEGAL TERMINATION ACTIONS. 18 24 If a contractor who is a party to a production contract 18 25 institutes a termination action in violation of section 18 26 202B.304, the contract producer may treat the termination 18 27 action as a breach of contract. The contractor shall pay all 18 28 damages for the breach, including but not limited to damages 18 29 associated with maintaining a commodity produced under the 18 30 production contract. In addition to other damages, the 18 31 contractor shall be liable for an amount equal to the value of 18 32 the remaining useful life of the structures and machinery or 18 33 equipment which is part of the contract producer's 18 34 agricultural operation. 18 35 SUBCHAPTER 5 19 1 ADMINISTRATION, ENFORCEMENT, AND PENALTIES 19 2 Sec. 21. NEW SECTION. 202B.501 ADMINISTRATIVE RULES. 19 3 The attorney general shall adopt rules as provided in 19 4 chapter 17A necessary for the efficient administration of this 19 5 chapter. 19 6 Sec. 22. NEW SECTION. 202B.502 INVESTIGATIONS. 19 7 1. The attorney general may conduct an investigation to 19 8 determine if a contractor is complying with the requirements 19 9 of this chapter. 19 10 2. Any person may file a complaint with the attorney 19 11 general regarding a violation of this chapter according to 19 12 procedures adopted by the attorney general. 19 13 3. The attorney general may conduct investigations at 19 14 times and places and to an extent that the attorney general 19 15 determines are necessary in order to conclude whether a 19 16 violation of this chapter has occurred. The attorney general 19 17 may inspect records relating to agricultural contracts 19 18 executed by a contractor or contract producer under this 19 19 chapter. The attorney general may enter upon any public or 19 20 private premises during regular business hours in a manner 19 21 consistent with the laws of this state and the United States, 19 22 including Article I, section 8, of the Constitution of the 19 23 State of Iowa, or the fourth amendment to the Constitution of 19 24 the United States for purposes of carrying out an inspection. 19 25 Sec. 23. NEW SECTION. 202B.503 ENFORCEMENT. 19 26 1. The attorney general's office is the primary agency 19 27 responsible for enforcing this chapter. 19 28 2. In enforcing the provisions of this chapter, the 19 29 attorney general may do all of the following: 19 30 a. Apply to the district court for an injunction to do any 19 31 of the following: 19 32 (1) Restrain a contractor from engaging in conduct or 19 33 practices in violation of this chapter. 19 34 (2) Require a contractor to comply with a provision of 19 35 this chapter. 20 1 b. Apply to the district court for the issuance of a 20 2 subpoena to obtain a copy of an agricultural contract for 20 3 purposes of enforcing this chapter. 20 4 c. Establish, assess, and collect civil penalties for 20 5 violations of this chapter in accordance with section 20 6 202B.504, including by instituting a contested case proceeding 20 7 as provided in chapter 17A in order to assess civil penalties, 20 8 or bring an action in district court in order to assess and 20 9 collect civil penalties. Moneys collected from civil 20 10 penalties shall be deposited into the general fund of the 20 11 state. 20 12 d. Commence, file, and prosecute any action or information 20 13 based on an alleged commission by a contractor of a criminal 20 14 offense as provided in this chapter. 20 15 3. The attorney general may transmit evidence, proof, and 20 16 information pertaining to a criminal offense as provided in 20 17 this chapter to the county attorney of the county in which the 20 18 alleged offense occurred, and the county attorney may 20 19 commence, file, and prosecute the action or information. 20 20 4. This chapter does not do any of the following: 20 21 a. Limit the authority of the attorney general to seek 20 22 administrative, legal, or equitable relief as provided by 20 23 other statutes or at common law. 20 24 b. Require the attorney general to institute a proceeding 20 25 for a violation of this chapter, if the attorney general 20 26 concludes that the public interest will be best served by a 20 27 suitable notice of warning in writing. 20 28 Sec. 24. NEW SECTION. 202B.504 CIVIL PENALTIES. 20 29 A contractor who violates a provision of this chapter is 20 30 subject to a civil penalty of not more than ten thousand 20 31 dollars. 20 32 1. A contractor may be assessed a civil penalty for 20 33 committing different acts in violation of this chapter which 20 34 arise from an agricultural contract involving the same 20 35 agricultural operation, but the contractor shall not be 21 1 assessed an aggregate amount of more than the maximum amount 21 2 provided in this subsection. 21 3 2. A contractor shall not be assessed a civil penalty for 21 4 violating section 202B.202 to the extent that a contractor 21 5 made a good faith and reasonable effort to comply with the 21 6 section. 21 7 Sec. 25. NEW SECTION. 202B.505 CRIMINAL PENALTIES. 21 8 1. A contractor who executes a production contract that 21 9 includes a provision in violation of section 202B.204 is 21 10 guilty of a fraudulent practice as provided in section 714.8. 21 11 2. A contractor who commits an unfair practice as provided 21 12 in section 202B.303 is guilty of a simple misdemeanor. 21 13 Sec. 26. NEW SECTION. 614.28A AGRICULTURAL CONTRACTS. 21 14 An action based upon an agricultural contract in which a 21 15 claim arises out of the failure of a contractor to meet the 21 16 requirements regarding an agricultural contract as provided in 21 17 subchapter 2 shall not be maintained after six years from the 21 18 date that the agricultural producer knew or should have known 21 19 of the alleged violation by using due diligence. 21 20 Sec. 27. RULEMAKING PROCEDURES. In adopting rules in 21 21 order to implement this Act, the attorney general shall 21 22 consult with the department of agriculture and land 21 23 stewardship. The attorney general shall also consult with 21 24 organizations representing agricultural producers, including 21 25 contract producers, and contractors including active 21 26 contractors and passive contractors executing production 21 27 contracts and processors executing marketing contracts. 21 28 Sec. 28. APPLICABILITY. 21 29 1. Except as provided in subsection 2, this Act applies to 21 30 agricultural contracts in force on or after the date of 21 31 enactment of this Act, regardless of the date that the 21 32 agricultural contract is executed. 21 33 2. Notwithstanding subsection 1, the following provisions 21 34 shall apply to agricultural contracts executed or 21 35 substantially amended after the date of enactment of this Act: 22 1 a. Section 202B.201, relating to readability requirements 22 2 for agricultural contract documents. 22 3 b. Section 202B.202, relating to disclosure statements. 22 4 c. Section 202B.203, subsection 1, paragraph "c", relating 22 5 to the settlement of disputes. 22 6 d. Section 202B.302, relating to a contract producer's 22 7 right to review or cancel an agricultural contract. 22 8 Sec. 29. DIRECTIONS TO CODE EDITOR. The Code editor is 22 9 directed to transfer section 202.3 to chapter 202B, subchapter 22 10 2, as enacted in this Act, and renumber the section as 22 11 202B.206 or another number consistent with this Act, and 22 12 correct internal references as necessary. 22 13 Sec. 30. Sections 202.1, 202.2, 202.4, and 202.5, Code 22 14 2001, are repealed. 22 15 Sec. 31. EFFECTIVE DATE. This Act, being deemed of 22 16 immediate importance, takes effect upon enactment. 22 17 EXPLANATION 22 18 This bill creates a new Code chapter 202B, which replaces 22 19 Code chapter 202 enacted by the Seventy-eighth General 22 20 Assembly in 1999 (1999 Acts, chapter 169), providing a number 22 21 of protections for contract producers of agricultural 22 22 commodities. The bill rewrites a number of those provisions, 22 23 creates a number of new provisions, and transfers one 22 24 provision to the new Code chapter that has been organized into 22 25 a number of subchapters. 22 26 GENERAL PROVISIONS. Subchapter 1 provides a number of 22 27 general provisions with general applicability, including 22 28 provisions relating to the new chapter's title and purpose, 22 29 definitions, and applicability. 22 30 Code section 202B.101 provides the chapter's short title, 22 31 the "Agricultural Fair Contracting Act", and provides findings 22 32 and a declaration of purpose which is to restore healthy 22 33 competition in agriculture for the benefit of both contract 22 34 producers and consumers. 22 35 Code section 202B.102 provides a number of definitions, 23 1 many of them variations upon definitions provided in Code 23 2 chapter 202, and includes definitions for contract producers 23 3 and contractors. A contract producer is a person who holds a 23 4 legal interest in an agricultural operation that produces a 23 5 commodity according to a contract. A contractor is a person 23 6 who executes a contract for the production of the commodity. 23 7 The bill provides that a marketing contract is a contract in 23 8 which a processor agrees to purchase a commodity from the 23 9 contract producer. The commodity may be livestock or raw 23 10 products derived from the livestock such as milk or eggs, or a 23 11 crop including corn and soybeans. 23 12 Code section 202B.103 provides for the general 23 13 applicability of the chapter. Similar to Code chapter 202, it 23 14 provides for the regulation of a production contract executed 23 15 by a contract producer and a contractor (i.e., "active 23 16 contractor") or a contract producer and another person 23 17 ("passive contractor") who is under contract with the active 23 18 contractor. 23 19 It provides that the chapter governs agricultural contracts 23 20 (production or marketing contracts) upon meeting a threshold. 23 21 For a production contract, the bill's provisions apply if the 23 22 contractor sold commodities under all production contracts in 23 23 the last year of $500,000 or more. For a marketing contract, 23 24 the bill's provisions apply if the contractor purchased 23 25 commodities under all marketing contracts in the last year of 23 26 $500,000 or more. The bill makes a number of exceptions for 23 27 certain contracts such as contracts for professional services; 23 28 the testing, development, or production of seeds or plants for 23 29 sale or resale to producers as seed stock; and contracts 23 30 involving research or experimental activities, if the sale of 23 31 the commodity is incidental. 23 32 Code section 202B.104 provides for the integration of 23 33 agreements between active and passive contractors and contract 23 34 producers involving the production of a commodity. It 23 35 provides for the integration of multiple oral or written 24 1 agreements or amendments executed by the same parties, and for 24 2 the integration of all documents related to the same 24 3 agricultural contract. 24 4 Code section 202B.105 provides procedures for notice 24 5 between contract producers and contractors, including delivery 24 6 by certified mail. 24 7 Code section 202B.106 imposes an obligation of good faith 24 8 on parties to an agricultural contract in the same manner as 24 9 provided to merchants under the uniform commercial code, and 24 10 specifically Code section 554.1203. 24 11 AGRICULTURAL CONTRACT DOCUMENTS. Subchapter 2 provides for 24 12 the agricultural contract documents, including requirements 24 13 for a disclosure statement, and the contents of agricultural 24 14 contracts. 24 15 Code section 202B.201 provides that an agricultural 24 16 contract document (the agricultural contract or a disclosure 24 17 statement required to be attached to the agricultural 24 18 contract) must be readable and understandable. In order to 24 19 comply with this requirement, the bill provides that the 24 20 agricultural contract be in a legible type, appropriately 24 21 divided into captioned sections, and written in a clear and 24 22 coherent style. 24 23 Code section 202B.202 provides that a contractor is 24 24 prohibited from executing a written agricultural contract, 24 25 unless the agricultural contract as executed by the contract 24 26 producer contains a disclosure statement that must be attached 24 27 to the agricultural contract. The statement must include a 24 28 general notice to contract producers, the name of the 24 29 contractor, a summary of the contract's terms and conditions, 24 30 its duration, the party responsible for addressing 24 31 environmental damages caused by the agricultural operation, 24 32 factors used to determine compensation paid to the contract 24 33 producer, capital investment requirements, and the party who 24 34 is responsible for obtaining and complying with a permit or 24 35 certification requirements. In addition, for a production 25 1 contract, it must include an explanation of the contract 25 2 producer's right to review and cancel the contract. 25 3 The bill also provides that the disclosure statement must 25 4 be printed in a legible font type and point size, be 25 5 appropriately divided and captioned into sections, and must be 25 6 written in a clear and coherent style using words, 25 7 punctuation, and grammar that is understandable by an ordinary 25 8 agricultural producer producing or marketing the same type of 25 9 commodity. 25 10 Code section 202B.203 prohibits a contractor from executing 25 11 a written agricultural contract, unless it complies with 25 12 certain requirements. It must include the names of all 25 13 parties; key definitions; provisions governing termination, 25 14 cancellation, renewal, and amendment; the duties and 25 15 obligations of the parties; and provisions subject to change. 25 16 The section provides that an agricultural contract cannot 25 17 include a provision that constitutes an unfair practice as 25 18 provided in the bill; a waiver or a right, obligation, or 25 19 procedure contained in the bill; a requirement providing for 25 20 dispute resolution by arbitration; or a provision governing 25 21 choice of law or choice of forum. 25 22 Code section 202B.204 prohibits a contractor from executing 25 23 an amendment to a production contract that obligates a 25 24 contract producer to make new or additional capital 25 25 investments of $20,000 or more under certain circumstances, if 25 26 the contractor does not contribute to satisfying the capital 25 27 investment requirement. 25 28 Code section 202B.205 provides that any provision of an 25 29 agricultural contract that contains a provision in violation 25 30 of the subchapter is void and unenforceable. 25 31 CONTRACT PRODUCER RIGHTS. Subchapter 3 provides for 25 32 contract producer rights, including a listing of those rights, 25 33 the right to review and cancel an agricultural contract, and 25 34 unfair practices by contractors. 25 35 Code section 202B.301 provides a list of contract producer 26 1 rights. The section includes the right to join or belong to 26 2 or to refrain from joining or belonging to an association of 26 3 producers, enter into membership agreements or marketing 26 4 contracts with associations of producers or a processor, make 26 5 statements or provide information to governmental officials 26 6 such as the attorney general's office, disclose information 26 7 contained in an agricultural contract notwithstanding any 26 8 provision requiring that the information is confidential, 26 9 create and enforce a security interest, review and cancel a 26 10 production contract as provided in the bill, and enforce a 26 11 provision of the bill. 26 12 Code section 202B.302 provides that a contract producer may 26 13 cancel the production contract by delivering a written 26 14 cancellation notice to the contractor who is a party to the 26 15 contract. Generally, the contract producer must deliver the 26 16 notice within three days following execution or before 26 17 accepting contract inputs, whichever occurs first. The bill 26 18 also provides for reversing actions taken by the parties if 26 19 the contract is cancelled. 26 20 Code section 202B.303 sets out unfair practices committed 26 21 by a contractor, including taking an action in order to coerce 26 22 or retaliate against a contract producer because the contract 26 23 producer exercises a right relating to the contract or the 26 24 treatment of the contract producer; the grant of a reward or 26 25 imposition of a penalty; or altering the quality, quantity, or 26 26 delivery times of a contract input. It prohibits a contractor 26 27 from providing false information to the contract producer, 26 28 which may include false information relating to an 26 29 agricultural contract, an agricultural producer, or the 26 30 contract operation. It prohibits a contractor from refusing a 26 31 request by a contract producer to provide statistical 26 32 information used to determine compensation levels or to 26 33 observe the weighing and measuring of a commodity. It 26 34 prohibits a contractor from using the performance of another 26 35 livestock producer as the basis for compensation or from 27 1 refusing a request to provide the contract producer 27 2 information regarding the performance of another agricultural 27 3 producer that is used as the basis for compensation. 27 4 Code section 202B.304 prohibits a contractor from 27 5 terminating a production contract, including by bringing a 27 6 legal action or enforcing a security interest against a 27 7 contract producer, unless the contractor provides the contract 27 8 producer with a right to cure. The contractor must provide a 27 9 notice of any breach of contract to the contract producer, 27 10 including a list of complaints causing the alleged breach, and 27 11 allow the contract producer at least 30 days in order to cure 27 12 the complaints. The bill provides that the right to cure does 27 13 not apply to a production contract that does not contain a 27 14 capital investment requirement or has such an investment 27 15 requirement with a capital investment value of less than 27 16 $100,000. It also does not apply if the contract producer 27 17 voluntarily abandons the contractual relationship with the 27 18 contractor or is convicted of an offense of fraud or theft 27 19 committed against the contractor. 27 20 JUDICIAL REMEDIES. Subchapter 4 provides a number of 27 21 judicial remedies that supplement common law remedies, 27 22 including the right to injunctive relief, attorney fees, and 27 23 special damages. 27 24 Code section 202B.401 provides that the bill's new chapter 27 25 does not limit the right of a contract producer to raise a 27 26 claim for relief or defense under common law or statute that 27 27 is otherwise available. 27 28 Code section 202B.402 provides that a contract producer may 27 29 commence a civil action or raise a claim for relief or defense 27 30 in another civil action, based on a violation of the bill's 27 31 new chapter. 27 32 Code section 202B.403 provides that in order to obtain 27 33 injunctive relief, a contract producer who commences a civil 27 34 action is not required to post a bond, prove the absence of an 27 35 adequate remedy at law, or show the existence of special 28 1 circumstances. 28 2 Code section 202B.404 provides that a contract producer who 28 3 prevails in a civil action against a contractor is entitled to 28 4 receive attorney fees paid by the contractor. 28 5 Code section 202B.405 provides that if a contractor 28 6 institutes a termination action in violation of provisions 28 7 allowing contract producers a right to cure an alleged breach 28 8 of production contracts with capital investment requirements, 28 9 the contract producer may treat the termination action as a 28 10 breach of contract, the contractor is liable for damages, and 28 11 is liable for an amount equal to the value of the remaining 28 12 useful life of the structures and machinery or equipment which 28 13 is part of the contract producer's agricultural operation. 28 14 ADMINISTRATION, ENFORCEMENT, AND PENALTIES. Subchapter 5 28 15 provides for the administration and enforcement of the new 28 16 Code chapter by the attorney general, and provides both civil 28 17 and criminal penalties. 28 18 Code section 202B.501 provides that the attorney general 28 19 must adopt rules necessary for the efficient administration of 28 20 this bill's new chapter. 28 21 Code section 202B.502 provides that the attorney general 28 22 may conduct an investigation to determine if a contractor is 28 23 complying with the requirements of this chapter. 28 24 Code section 202B.503 provides that the attorney general's 28 25 office is the primary agency responsible for enforcing the 28 26 bill's new chapter. It provides that the attorney general's 28 27 office may apply to district court for injunctive relief or a 28 28 subpoena; establish, assess, and collect civil penalties for 28 29 violations of the chapter; and prosecute a case based on a 28 30 criminal violation of the chapter. The bill also provides 28 31 that the attorney general may transmit information to a county 28 32 attorney for prosecution. 28 33 Code section 202B.504 provides for civil penalties. 28 34 Generally, a contractor who violates a provision of the bill 28 35 is subject to a civil penalty of not more than $10,000. The 29 1 bill provides that the civil penalty does not apply to a 29 2 violation involving a disclosure requirement, if the 29 3 contractor made a good faith and reasonable effort to comply 29 4 with the requirements. 29 5 Code section 202B.505 provides for criminal penalties 29 6 imposed upon a contractor who commits certain offenses 29 7 specified in the section. A contractor who commits an unfair 29 8 practice is guilty of a simple misdemeanor. A contractor who 29 9 imposes a confidentiality requirement in a production contract 29 10 in violation of Code section 202.3 as transferred into the new 29 11 Code chapter is guilty of a fraudulent practice (no change 29 12 from current law). 29 13 MISCELLANEOUS PROVISIONS. The bill provides a number of 29 14 related miscellaneous provisions, many appearing only in 29 15 session law. 29 16 The bill amends Code chapter 614 that provides for statutes 29 17 of limitations. The bill creates Code section 614.28A that 29 18 provides a six-year statute of limitations for civil actions 29 19 involving the failure of a contractor in meeting requirements 29 20 regarding the contents of agricultural contracts as provided 29 21 in subchapter 2. 29 22 The bill provides rulemaking authority to the attorney 29 23 general's office, by requiring the office to consult with the 29 24 department of agriculture and land stewardship and 29 25 organizations interested in agricultural contracting. 29 26 The bill provides for its applicability. With limited 29 27 exceptions, the bill applies to agricultural contracts in 29 28 force on or after the date of enactment of the bill. The 29 29 exceptions relate to provisions relating to the settlement of 29 30 disputes, requirements for readability and disclosure 29 31 statements, and the right of a contract producer to review and 29 32 cancel a contract. 29 33 The bill directs the Code editor to transfer Code section 29 34 202.3 to the new Code chapter, into subchapter 2. The bill 29 35 repeals the remaining sections in Code chapter 202. 30 1 The bill takes effect upon enactment. 30 2 LSB 1220XS 79 30 3 da/cf/24.2
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