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PAG LIN
1 1 Section 1. Section 202.1, Code 2001, is amended by
1 2 striking the section and inserting in lieu thereof the
1 3 following:
1 4 202.1 DEFINITIONS.
1 5 1. "Agricultural contract" means a marketing contract or a
1 6 production contract.
1 7 2. "Commodity" means livestock, raw milk, eggs, wool, or a
1 8 crop.
1 9 3. "Contract producer" means a person who holds a legal
1 10 interest in a livestock facility or crop field and who
1 11 produces a commodity at the livestock facility or crop field
1 12 according to the terms of a production contract. "Contract
1 13 producer" does not include a commercial fertilizer or
1 14 pesticide applicator, a feed supplier, or a veterinarian, when
1 15 acting in such capacity.
1 16 4. "Contractor" means a person who owns a commodity that
1 17 is produced by a contract producer. A contractor includes an
1 18 association organized as a cooperative in which another
1 19 cooperative association organized under chapter 497, 498, 499,
1 20 or 501 is a member, if the association contracts with a member
1 21 which is a cooperative association organized under chapter
1 22 497, 498, 499, or 501, which contracts for the care and
1 23 feeding of swine with a member of the cooperative who is
1 24 actively engaged in farming.
1 25 5. a. "Crop" means a plant used for food, animal feed,
1 26 seed, fiber, oil, fuel, pharmaceuticals, or nutriceuticals if
1 27 the plant is classified as a forage or cereal plant, including
1 28 but not limited to alfalfa, barley, buckwheat, corn, flax,
1 29 forage, millet, oats, popcorn, rye, sorghum, soybeans,
1 30 sunflowers, wheat, and grasses used for forage or silage.
1 31 b. "Crop" does not include trees or nuts or fruit grown on
1 32 trees; sod; shrubs; greenhouse plants; or plants or plant
1 33 parts produced for precommercial, experimental, or research
1 34 purposes.
1 35 6. "Crop field" means farmland where a crop is produced by
2 1 a producer who holds a legal interest in the farmland.
2 2 7. "Farmland" means agricultural land that is suitable for
2 3 use in farming as defined in section 9H.1.
2 4 8. "Livestock" means a domesticated animal belonging to
2 5 the bovine, porcine, ovine, caprine, equine, or avian species.
2 6 9. "Livestock facility" means an animal feeding operation
2 7 as defined in section 455B.161, in which livestock or raw milk
2 8 is produced by a producer who holds a legal interest in the
2 9 animal feeding operation. "Livestock facility" includes a
2 10 confinement feeding operation as defined in section 455B.161,
2 11 an open feedlot, or an area which is used for the raising of
2 12 crops or other vegetation and upon which livestock is fed for
2 13 slaughter or is allowed to graze or feed.
2 14 10. "Marketing contract" means an oral or written
2 15 agreement between a processor and a producer or contractor,
2 16 who is not also a processor, for the purchase of commodities
2 17 grown or raised by the producer in this state. A marketing
2 18 contract is executed when it is signed by each party or by a
2 19 person authorized to act on the party's behalf.
2 20 11. "Open feedlot" means an unroofed or partially roofed
2 21 animal feeding operation in which no crop, vegetation, or
2 22 forage growth or residue cover is maintained during the period
2 23 that animals are confined in the operation.
2 24 12. "Processor" means a person, which alone or in
2 25 conjunction with others, directly or indirectly controls the
2 26 manufacturing, processing, or preparation of goods from
2 27 commodities having a total annual wholesale value of ten
2 28 million dollars or more.
2 29 13. "Produce" means to do any of the following:
2 30 a. Provide for the housing, caring, and feeding of
2 31 livestock. If the livestock is dairy cattle, "production"
2 32 includes milking the dairy cattle and storing raw milk at the
2 33 livestock facility.
2 34 b. Provide for planting, raising, harvesting, and storing
2 35 a crop. "Produce" includes preparing the soil for planting
3 1 and nurturing the crop by the application of fertilizers or
3 2 soil conditioners as defined in section 200.3 or pesticides as
3 3 defined in section 206.2.
3 4 14. "Producer" means a person who produces commodities.
3 5 15. "Production contract" means an oral or written
3 6 agreement that provides for the production of a commodity and
3 7 for payment in an amount of ten thousand dollars or more by a
3 8 contractor. A production contract is executed when it is
3 9 signed by each party or by a person authorized to act on the
3 10 party's behalf. A production contract includes a production
3 11 contract that also includes terms meeting the definition of a
3 12 marketing contract.
3 13 Sec. 2. Section 202.2, Code 2001, is amended by striking
3 14 the section and inserting in lieu thereof the following:
3 15 202.2 IMPLIED OBLIGATION OF GOOD FAITH.
3 16 An agricultural contract imposes an obligation of good
3 17 faith on all parties with respect to the performance and
3 18 enforcement of the agricultural contract. "Good faith", for
3 19 purposes of this section, means honesty in fact and the
3 20 observance of reasonable commercial standards of fair dealing
3 21 in the trade.
3 22 Sec. 3. Section 202.3, Code 2001, is amended by striking
3 23 the section and inserting in lieu thereof the following:
3 24 202.3 READABILITY AND DISCLOSURE.
3 25 1. READABILITY OF CONTRACTS. An agricultural contract,
3 26 other than an oral agreement, must be in legible type,
3 27 appropriately divided and captioned by its various sections,
3 28 and written in plain language using words and grammar that are
3 29 understandable by a person of average intelligence, education,
3 30 and experience within the industry. This section does not
3 31 apply to the following terms in an agricultural contract:
3 32 a. LEGALLY REQUIRED. Particular words, phrases,
3 33 provisions, or forms of agreement specifically required or
3 34 utilized by state or federal law.
3 35 b. CUSTOMARILY USED TERMS. Technical terms used to
4 1 describe the services or property which is the subject of the
4 2 contract, if the terms are customarily used by contract
4 3 producers in the ordinary course of business in connection
4 4 with the services or property being described.
4 5 2. COVER SHEET. An agricultural contract, other than an
4 6 oral agreement, must be accompanied by a clearly written cover
4 7 sheet setting forth the following:
4 8 a. A brief statement that the document is a legally
4 9 binding contract between the parties.
4 10 b. A brief statement of the material terms and conditions
4 11 of the agreement, including page or section references.
4 12 c. A written disclosure of material risks faced by the
4 13 contract producer including but not limited to liability for
4 14 environmental damage, including page or section references.
4 15 d. A statement detailing, in plain language, the contract
4 16 producer's right to review the contract as described in
4 17 section 202.5 and to have the contract reviewed by an attorney
4 18 or other advisor as provided in section 202.4.
4 19 e. A brief statement of the length of the contract and
4 20 terms of termination of the contract.
4 21 3. Any vague or conflicting terms within the contract or
4 22 statements in the cover sheet which conflict with terms of the
4 23 contract shall be resolved in favor of the contract producer.
4 24 Sec. 4. Section 202.4, Code 2001, is amended by striking
4 25 the section and inserting in lieu thereof the following:
4 26 202.4 CONFIDENTIALITY OF AGRICULTURAL CONTRACTS
4 27 PROHIBITED.
4 28 1. a. A contractor shall not on or after May 24, 1999,
4 29 enforce a provision in a production contract if the provision
4 30 provides that information contained in the production contract
4 31 is confidential.
4 32 b. A provision which is part of a production contract is
4 33 void if the provision states that information contained in the
4 34 production contract is confidential. The confidentiality
4 35 provision is void whether the confidentiality provision is
5 1 express or implied; oral or written; required or conditional;
5 2 contained in the production contract, another production
5 3 contract, or in a related document, policy, or agreement.
5 4 This section does not affect other provisions of a production
5 5 contract or a related document, policy, or agreement which can
5 6 be given effect without the voided provision.
5 7 2. A government body as defined in section 22.1, including
5 8 the office of attorney general, shall not disclose information
5 9 to the public regarding a production contract, without the
5 10 signed consent of a party to the production contract. The
5 11 consent may be made by executing a production contract
5 12 containing a provision allowing for disclosure or by signing a
5 13 separate authorization form. If a party has consented to the
5 14 disclosure of the information, the government body shall not
5 15 disclose information that identifies a person or geographic
5 16 location referred to in the production contract. If the
5 17 government body discloses the terms and conditions of the
5 18 production contract, the government body shall omit the
5 19 identifying information. For purposes of this section,
5 20 "identifying information" includes but is not limited to the
5 21 names of persons, postal or electronic addresses, political
5 22 subdivisions, or telephone or facsimile numbers contained in
5 23 the production contract. A production contract that is
5 24 submitted to a government body on a voluntary basis is not a
5 25 public record under chapter 22. An employee of a public
5 26 agency who intentionally violates this subsection is guilty of
5 27 a simple misdemeanor.
5 28 3. This section does not require a party to a production
5 29 contract to divulge the information in the production contract
5 30 to another person.
5 31 Sec. 5. Section 202.5, Code 2001, is amended by striking
5 32 the section and inserting in lieu thereof the following:
5 33 202.5 CONTRACT PRODUCER'S THREE-DAY RIGHT TO REVIEW.
5 34 A contract producer may cancel a production contract,
5 35 except where delivery of the commodity has been accepted, by
6 1 mailing a written cancellation notice by certified or
6 2 restricted certified mail to the contractor within three
6 3 business days after the contract is executed, or before a
6 4 later cancellation deadline if a later deadline is specified
6 5 in the contract. The written cancellation notice is deemed to
6 6 be received whether or not the contractor signs a receipt for
6 7 the notice after mailing the notice by certified or restricted
6 8 certified mail in accordance with section 618.15. A contract
6 9 producer shall not cancel a production contract if the
6 10 contractor and contract producer have agreed in writing that
6 11 the contractor may take action after execution of the contract
6 12 in reliance on the contract to purchase, market, or purchase
6 13 inputs for the commodity.
6 14 A contract producer's right to cancel, the method by which
6 15 the contract producer may cancel, the name and address to
6 16 which the cancellation notice should be mailed, and the
6 17 deadline for canceling the production contract shall be
6 18 clearly disclosed in every production contract. Failure to
6 19 provide this disclosure shall be permissible grounds for a
6 20 contract producer to terminate the production contract at any
6 21 time after providing written notice of the termination.
6 22 Sec. 6. NEW SECTION. 202.6 NOTICE OF TERMINATION.
6 23 1. Except as provided in subsection 2, a contractor shall
6 24 not terminate or cancel a production contract until the
6 25 contractor has provided the contract producer written notice
6 26 of the intention to terminate or cancel the production
6 27 contract at least thirty days before the effective date of the
6 28 termination or cancellation. The notice shall provide a
6 29 complete list of complaints alleging causes for the breach of
6 30 contract.
6 31 2. A contractor may terminate or cancel a production
6 32 contract without notice as required in subsection 1 if the
6 33 basis for the termination or cancellation is any of the
6 34 following:
6 35 a. A voluntary abandonment of the contractual relationship
7 1 by the contract producer. A complete failure of a contract
7 2 producer's performance under a production contract shall be
7 3 deemed to be an abandonment.
7 4 b. The neglect or abuse of livestock as defined in chapter
7 5 717.
7 6 c. The conviction of a contract producer of an offense of
7 7 fraud or theft committed against the contractor.
7 8 d. The production contract provides for termination of the
7 9 contract on a date certain and the life of the contract has
7 10 come to its natural end.
7 11 3. A contractor shall not terminate or cancel a production
7 12 contract unless the contract producer fails to remedy each
7 13 cause of the breach of contract as alleged in the written
7 14 notice within thirty days following receipt of the notice
7 15 required under subsection 1. If a contract producer remedies
7 16 or attempts to remedy the alleged causes for the breach of
7 17 contract as listed by the notice, it shall not be construed as
7 18 an admission of the alleged breach of contract.
7 19 Sec. 7. NEW SECTION. 202.7 CONTRACT PRODUCER RIGHTS.
7 20 1. A "contract producer right" shall include any one or
7 21 more of the following legal rights and protections:
7 22 a. RIGHT TO JOIN ASSOCIATION. A contract producer shall
7 23 have the right to join or belong to, or to refrain from
7 24 joining or belonging to, an association of contract producers.
7 25 b. RIGHT TO CONTRACT WITH OTHERS. A contract producer
7 26 shall have the right to enter into a membership agreement or
7 27 marketing contract with an association of contract producers,
7 28 a processor, or another contract producer. A contract
7 29 producer shall have the right to exercise contractual rights
7 30 under such a membership agreement or marketing contract,
7 31 provided, however, that such rights do not negate or interfere
7 32 with any obligation of exclusive delivery of commodities under
7 33 the agricultural contract.
7 34 c. RIGHT TO BE A WHISTLEBLOWER. A contract producer shall
7 35 have the right to lawfully provide statements or information
8 1 regarding alleged improper actions or violations of law by a
8 2 contractor or processor. This right does not include the
8 3 right to make statements or provide information if the
8 4 statements or information are determined to be libelous or
8 5 slanderous.
8 6 d. RIGHT TO USE CONTRACT PRODUCER LIEN. A contract
8 7 producer shall have the right to file, continue, terminate, or
8 8 enforce a lien under chapter 579A or 579B.
8 9 e. COMPENSATION INFORMATION. A contract producer shall
8 10 have the right to receive from the contractor upon request the
8 11 formula used to determine compensation paid to the contract
8 12 producer under a production contract, including, but not
8 13 limited to, feed conversion rates, feed analyses and
8 14 origination, seed variety, and yields used in calculating the
8 15 formula.
8 16 f. OBSERVATION OF WEIGHING. A contract producer or the
8 17 contract producer's designated representative shall have the
8 18 right to observe, by actual observation at the time of
8 19 weighing, the weights and measures used to determine the
8 20 contract producer's compensation under a production contract.
8 21 2. A contractor or processor shall not engage in or permit
8 22 any employee or agent to engage in the following practices in
8 23 connection with agricultural contracts:
8 24 a. RETALIATION. Take actions to coerce, intimidate,
8 25 disadvantage, retaliate against, or discriminate against any
8 26 contract producer because the contract producer exercises, or
8 27 attempts to exercise, any contract producer right, including
8 28 actions affecting the following:
8 29 (1) The execution, termination, extension, or renewal of
8 30 an agricultural contract.
8 31 (2) The treatment of a contract producer, which may
8 32 include providing discriminatory or less favorable terms in an
8 33 agricultural contract or interpreting terms of an existing
8 34 agricultural contract in a discriminatory or less favorable
8 35 manner. The terms may relate to the price paid for a
9 1 commodity, the quality or the quantity of a commodity
9 2 demanded, or financing.
9 3 (3) The imposition of a penalty, including the denial of a
9 4 reward. The reward or penalty may be in any form, including,
9 5 but not limited to, financial rewards or penalties. Financial
9 6 rewards or penalties may relate to loans, bonuses, or
9 7 inducements.
9 8 (4) Alter the quality, quantity, or delivery times of
9 9 appropriate contract inputs provided to the contract producer
9 10 including livestock, feed, veterinary services, vaccines,
9 11 seed, plants, fertilizer as defined in section 200.3, or
9 12 pesticides as defined in section 206.2.
9 13 b. FALSE INFORMATION TO THE CONTRACT PRODUCER. Provide
9 14 false information to the contract producer, which may include
9 15 false information relating to any of the following:
9 16 (1) Regarding the condition of the finances or the
9 17 management of the contractor or processor.
9 18 (2) The contract producer rights provided by this chapter
9 19 or other provisions of law.
9 20 (3) A contract producer with whom the contract producer
9 21 associates or an association of contract producers or an
9 22 agricultural organization with which the contract producer is
9 23 affiliated, including but not limited to the condition of the
9 24 finances or the management of the association of contract
9 25 producers or agricultural organization.
9 26 c. FALSE INFORMATION TO OTHERS. Provide false information
9 27 to the contract producer's associates or other persons
9 28 regarding the contract producer.
9 29 d. ADDITIONAL CAPITAL INVESTMENTS. Require a contract
9 30 producer to make new or additional major capital investments
9 31 in connection with a production contract which are beyond the
9 32 initial investment requirements of such production contract.
9 33 It shall not be a violation of this section if such new or
9 34 additional capital investments are offset by other
9 35 compensation or modifications to contract terms, in a manner
10 1 the contract producer agrees to in writing as constituting
10 2 acceptable and satisfactory consideration for the new capital
10 3 investment.
10 4 e. DISCLOSURE OF RISKS AND READABILITY. Execute an
10 5 agricultural contract in violation of the disclosure of risks
10 6 and readability requirements of section 202.3.
10 7 f. MEDIATION PROVISIONS. Execute an agricultural contract
10 8 without a mediation provision as required under section 202.9.
10 9 Sec. 8. NEW SECTION. 202.8 CHOICE OF LAW, JURISDICTION,
10 10 AND VENUE.
10 11 Any condition, stipulation, or provision requiring the
10 12 application of the law of another state in lieu of this
10 13 chapter is void and unenforceable. A contractor or processor
10 14 executing an agricultural contract with a contract producer
10 15 who resides in this state is subject to personal jurisdiction
10 16 in this state. Venue is determined by the location of the
10 17 crop field or livestock facility where the commodity is
10 18 produced in accordance with the terms of an agricultural
10 19 contract.
10 20 Sec. 9. NEW SECTION. 202.9 MEDIATION AND ARBITRATION.
10 21 An agricultural contract must contain language providing
10 22 for resolution of disputes concerning the contract by
10 23 mediation or nonbinding arbitration.
10 24 An agricultural contract shall not contain language
10 25 providing for resolution of disputes concerning the contract
10 26 by binding arbitration. A contract providing for such
10 27 resolution is void and unenforceable except where it is agreed
10 28 to by the producer after the dispute has manifested and where
10 29 all parties to the contract agree to the person serving as the
10 30 arbitrator or arbitration panel.
10 31 Sec. 10. NEW SECTION. 202.10 WAIVERS.
10 32 Any provision of an agricultural contract which waives a
10 33 producer's right or obligation of a contractor or processor
10 34 established by this chapter is void and unenforceable. This
10 35 section does not affect other provisions of an agricultural
11 1 contract, including a related document, policy, or agreement
11 2 which can be given effect without the voided provision.
11 3 Sec. 11. NEW SECTION. 202.11 PENALTIES AND ENFORCEMENT.
11 4 1. A contract producer who suffers damages or whose rights
11 5 are violated because of a contractor's or processor's
11 6 violation of this chapter may obtain appropriate legal and
11 7 equitable relief, including punitive damages, in a suit at
11 8 common law pursuant to Iowa's rules of civil procedure. A
11 9 contractor who violates this chapter is liable to the contract
11 10 producer for treble damages.
11 11 a. In such a civil action against the contractor or
11 12 processor where the producer prevails, the court shall award
11 13 the producer court costs, reasonable attorney fees, and
11 14 reasonable litigation expenses.
11 15 b. In order to obtain injunctive relief, the contract
11 16 producer is not required to post a bond, prove the absence of
11 17 an adequate remedy at law, or show the existence of special
11 18 circumstances, unless the court for good cause otherwise
11 19 orders. The court may order any form of prohibitory or
11 20 mandatory relief that is appropriate under principles of
11 21 equity, including but not limited to issuing a temporary or
11 22 permanent restraining order.
11 23 c. If a contractor terminates or cancels a production
11 24 contract other than as provided in section 202.6, the contract
11 25 producer may recover damages including but not limited to the
11 26 remaining value of the contract and the value of the remaining
11 27 useful life of capital investments made to fulfill the
11 28 contract including land, structures, machinery, or equipment
11 29 to the extent that the capital investments exceed the fair
11 30 market value of the land, structures, machinery, or equipment.
11 31 2. The attorney general may enforce a contract producer's
11 32 right as identified in section 202.7, subsection 1, against a
11 33 contractor, processor, or its employees or agents who take
11 34 actions to impede such right. The attorney general may do all
11 35 of the following:
12 1 a. Bring an action in district court to impose and award
12 2 civil penalties under subsection 3.
12 3 b. Apply to the district court for an injunction to
12 4 restrain the contractor or processor from engaging in conduct
12 5 or practices in violation of a contract producer's right or to
12 6 require a contractor or processor to comply with provisions of
12 7 section 202.7, subsection 1.
12 8 c. Apply to the district court for the issuance of a
12 9 subpoena to obtain an agricultural contract for purposes of
12 10 enforcing section 202.7, subsection 1.
12 11 3. The district court may impose civil penalties against a
12 12 contractor or processor who engages in conduct or practices in
12 13 violation of a contract producer's rights as identified in
12 14 section 202.7 in an amount up to five thousand dollars per day
12 15 per violation. The amount of the civil penalties shall be
12 16 awarded to the contract producer whose rights were violated by
12 17 the contractor or processor.
12 18 Sec. 12. Section 202A.4, Code 2001, is amended by adding
12 19 the following new subsection:
12 20 NEW SUBSECTION. 3. A government body as defined in
12 21 section 22.1, including the office of attorney general, shall
12 22 not disclose information to the public regarding a contract
12 23 for the purchase of livestock, without the signed consent of a
12 24 party to the contract. The consent may be made by executing a
12 25 contract containing a provision allowing for disclosure or by
12 26 signing a separate authorization form. If a party has
12 27 consented to the disclosure of the information, the government
12 28 body shall not disclose information that identifies a person
12 29 or geographic location referred to in the contract. If the
12 30 government body discloses the terms and conditions of the
12 31 contract, the government body shall omit the identifying
12 32 information. For purposes of this section, identifying
12 33 information includes but is not limited to the names of
12 34 persons, postal or electronic addresses, political
12 35 subdivisions, or telephone or facsimile numbers contained in
13 1 the contract. A contract that is submitted to the government
13 2 body on a voluntary basis is not a public record under chapter
13 3 22. An employee of a public agency who intentionally violates
13 4 this subsection is guilty of a simple misdemeanor.
13 5 EXPLANATION
13 6 This bill provides the relationship between persons who
13 7 enter into contracts for the production and marketing of
13 8 agricultural commodities. The bill applies to agricultural
13 9 producers and to contractors and processors who enter into a
13 10 contractual relationship with agricultural producers.
13 11 The bill imposes an obligation of good faith upon the
13 12 parties. It provides that an agricultural contract must be in
13 13 legible type and printed in plain language, and be accompanied
13 14 by a cover sheet. The cover sheet must include brief
13 15 statements regarding the contract, including its material
13 16 terms and conditions, and material risks faced by the
13 17 producer. The bill provides that any vague or conflicting
13 18 terms within the contract or in the cover sheet must be
13 19 resolved in favor of the contract producer.
13 20 The bill prohibits a contractor from enforcing a provision
13 21 in an agricultural contract if the provision prohibits the
13 22 disclosure of the terms of an agricultural contract. The bill
13 23 provides that a provision in violation of the confidentiality
13 24 provision is void. The bill prohibits a government body from
13 25 disclosing information contained in a production contract
13 26 without the written authorization by a party. The bill
13 27 prohibits the disclosure of any identifying information. The
13 28 bill provides that a production contract voluntarily submitted
13 29 is not considered a public record or subject to disclosure
13 30 under Code chapter 22. The bill amends Code section 202A.4
13 31 which provides for confidentiality of contracts for the
13 32 purchase of livestock in a similar manner.
13 33 The bill provides that a contract producer may cancel a
13 34 production contract, except where delivery of the commodity
13 35 has been accepted, by mailing a written cancellation notice to
14 1 the contractor.
14 2 The bill prohibits a contractor from terminating a
14 3 production contract until the contractor has provided the
14 4 contract producer written notice of the intention to terminate
14 5 the production contract at least 30 days before the effective
14 6 date of the termination. The notice shall provide a complete
14 7 list of complaints alleging causes for the breach of contract
14 8 and provide the contractor with an opportunity to cure the
14 9 deficiencies.
14 10 The bill provides for a number of contract producer rights,
14 11 including the right to join associations, contract with
14 12 others, provide statements regarding an alleged improper
14 13 action or violations of law by a contractor or processor, the
14 14 right to file and enforce a contract producer lien under Code
14 15 chapters 579A and 579B, to receive information regarding how
14 16 compensation is paid, and to observe the weighing and
14 17 measuring of commodities.
14 18 The bill prohibits a person from taking action to coerce,
14 19 intimidate, disadvantage, retaliate against, or discriminate
14 20 against any contract producer. The bill also prohibits a
14 21 person from providing false information to or about a contract
14 22 producer. It also prohibits a person from requiring that a
14 23 contract producer make new or additional major capital
14 24 investments in an operation.
14 25 The bill provides that any condition, stipulation, or
14 26 provision requiring the application of the law of another
14 27 state in lieu of this chapter is void and unenforceable.
14 28 The bill provides that an agricultural contract must
14 29 contain language providing for resolution of disputes. It
14 30 cannot contain language providing for binding arbitration, but
14 31 may provide for nonbinding arbitration or mediation.
14 32 The bill provides that an agricultural contract which
14 33 waives a producer right or obligation of a contractor or
14 34 processor is void and unenforceable.
14 35 The bill provides that a contract producer who suffers
15 1 damages or whose rights are violated because of a contractor's
15 2 or processor's violation of the bill may obtain appropriate
15 3 legal and equitable relief at common law pursuant to Iowa's
15 4 rules of civil procedure. A contractor who violates the
15 5 bill's provisions is liable to the contract producer for
15 6 treble damages and attorney fees.
15 7 The bill provides that the attorney general may enforce a
15 8 contract producer's right by bringing an action in district
15 9 court to impose and award civil penalties.
15 10 The bill amends Code section 714.8 that currently provides
15 11 that a packer who includes a confidentiality provision in an
15 12 agricultural contract in violation of the chapter providing
15 13 for price information reporting is guilty of a fraudulent
15 14 practice. The bill provides that the fraudulent practice
15 15 applies to processors under the bill.
15 16 LSB 3348SV 79
15 17 da/cls/14.1
Text: SF00501 Text: SF00503 Text: SF00500 - SF00599 Text: SF Index Bills and Amendments: General Index Bill History: General Index
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