Text: SSB03117 Text: SSB03119 Text: SSB03100 - SSB03199 Text: SSB 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 6635XC 79 4 33 da/cf/24
Text: SSB03117 Text: SSB03119 Text: SSB03100 - SSB03199 Text: SSB Index Bills and Amendments: General Index Bill History: General Index
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