Text: SSB01143 Text: SSB01145 Text: SSB01100 - SSB01199 Text: SSB Index Bills and Amendments: General Index Bill History: General Index
PAG LIN 1 1 DIVISION I 1 2 REGULATION OF PROCESSORS 1 3 Section 1. Section 9H.1, Code 2003, is amended by adding 1 4 the following new subsection: 1 5 NEW SUBSECTION. 26A. "Person" means an individual, 1 6 business association, government or governmental subdivision 1 7 or agency, or any other legal entity. 1 8 Sec. 2. Section 9H.1, subsection 29, unnumbered paragraph 1 9 1, Code 2003, is amended to read as follows: 1 10 "Retailer" means a person who is engaged in the business of 1 11 selling pork productsin this state, if all of the following 1 12 apply: 1 13 Sec. 3. Section 9H.1, subsection 32, Code 2003, is amended 1 14 to read as follows: 1 15 32. "Swine producer" means a person who owns, controls, or 1 16 operates a swine operationin this stateor who contracts for 1 17 the care and feeding of swinein this state. 1 18 Sec. 4. Section 9H.2, unnumbered paragraph 1, Code 2003, 1 19 is amended to read as follows: 1 20 The purpose of this section is to preserve free and private 1 21 enterprise, prevent monopoly, and also to protect consumers by 1 22 regulating the balance of competitive forces in beef and swine 1 23 production, by enhancing the welfare of the farming community, 1 24 and also by preventing processors from gaining control of beef 1 25 or swine production. 1 26 Sec. 5. Section 9H.2, subsection 1, paragraph b, 1 27 subparagraph (2), Code 2003, is amended to read as follows: 1 28 (2) Directly or indirectly contract for the care and 1 29 feeding of swine in this state.However, this subparagraph1 30does not apply to a cooperative association organized under1 31chapter 497, 498, 499, or 501, if the cooperative association1 32contracts for the care and feeding of swine with a member of1 33the cooperative association who is actively engaged in1 34farming. This subparagraph does not apply to an association1 35organized as a cooperative in which another cooperative2 1association organized under chapter 497, 498, 499, or 501 is a2 2member, if the association contracts with a member which is a2 3cooperative association organized under chapter 497, 498, 499,2 4or 501, which contracts for the care and feeding of swine with2 5a member of the cooperative who is actively engaged in2 6farming.2 7 Sec. 6. Section 9H.2A, Code 2003, is amended by adding the 2 8 following new subsection: 2 9 NEW SUBSECTION. 0A. A cooperative association which is a 2 10 party to a contract for the care and feeding of swine in 2 11 compliance with section 9H.2 prior to the effective date of 2 12 this Act, and which is in violation of section 9H.2, as 2 13 amended by this Act, shall have until June 30, 2005, to comply 2 14 with section 9H.2, as amended by this Act. 2 15 Notwithstanding any provision of this section, a 2 16 cooperative association shall not take an action on or after 2 17 the effective date of this Act that would be in violation of 2 18 section 9H.2, as amended by this Act. 2 19 Sec. 7. Section 9H.1, subsection 28, paragraph c, Code 2 20 2003, is amended to read as follows: 2 21 c. Not less thantwenty-fiveten percent of the swine 2 22 slaughtered by the processor each day are purchased through 2 23 cash or spot market purchasesfrom sellers of swine who do not2 24hold a direct or indirect interest in the processor. 2 25 d. The processor makes cash or spot market purchases of 2 26 swine under the same terms and conditions from both sellers of 2 27 swine who hold a direct or indirect interest in the processor 2 28 and sellers of swine who do not hold a direct or indirect 2 29 interest in the processor. In making such cash or spot market 2 30 purchases of swine, the processor shall not provide sellers of 2 31 swine who hold a direct or indirect interest in the processor 2 32 with a preference over sellers of swine who do not hold a 2 33 direct or indirect interest in the processor. 2 34 DIVISION II 2 35 TRANSFER AND ELIMINATION OF CODE PROVISIONS FOR PURPOSES OF 3 1 ENHANCING READABILITY 3 2 Sec. 8. Section 9H.1, Code 2003, is amended by adding the 3 3 following new subsection: 3 4 NEW SUBSECTION. 22A. "Indirect" means to act or attempt 3 5 to accomplish an act through an interest in a business 3 6 association, through one or more affiliates or intermediaries, 3 7 or by any method other than a direct approach, including by 3 8 any circuitous or oblique method. 3 9 Sec. 9. NEW SECTION. 9H.3A PENALTIES – INJUNCTIVE 3 10 RELIEF. 3 11 The courts of this state may prevent and restrain 3 12 violations of this chapter through the issuance of an 3 13 injunction. The attorney general or a county attorney shall 3 14 institute suits on behalf of the state to prevent and restrain 3 15 violations of this chapter. 3 16 Sec. 10. Section 9H.14, Code 2003, is amended to read as 3 17 follows: 3 18 9H.14 DUTIES OF SECRETARY OF STATE. 3 19 The secretary of state shall notify the attorney general 3 20 when the secretary of state has reason to believe a violation 3 21 of this chapter has occurred. It is the intent of this 3 22 section that information shall be made available to members of 3 23 the general assembly and appropriate committees of the general 3 24 assembly in order to determine the extent offarming3 25 production operations being carried out in this state by 3 26corporations and other business entitiescontract feeders and 3 27 processors and the effect of suchfarmingpractices upon the 3 28 economy of this state. The reports ofcorporations, limited3 29liability companies, limited partnerships, trusts,3 30contractors, andcontract feeders and processors required in 3 31 this chapter shall be confidential reports except as to the 3 32 attorney general for review and appropriate action when 3 33 necessary. The secretary of state shall assist any committee 3 34 of the general assembly existing or established for the 3 35 purposes of studying the effects of this chapter and the 4 1 practices this chapter seeks to study and regulate. 4 2 Sec. 11. Section 10B.4A, unnumbered paragraph 1, code 4 3 2003, is amended to read as follows: 4 4 The secretary of state shall not prepare or distribute 4 5 forms for reports or file reports otherwise required pursuant 4 6 to section9H.5A,9I.8,or 501.103. A person required to file 4 7 a report pursuant to this chapter is not required to file a 4 8 report under those sections. 4 9 Sec. 12. Section 331.756, subsection 33, Code 2003, is 4 10 amended to read as follows: 4 11 33. Institute legal procedures on behalf of the state to 4 12 prevent violations ofthe corporate or partnership farming4 13laws as provided in section 9H.3chapter 9H or 202B. 4 14 Sec. 13. DIRECTIONS TO CODE EDITOR. 4 15 1. The purpose of this section is only to enhance the 4 16 readability of provisions of the Code, and shall not be 4 17 construed as a measure intended to accomplish any substantive 4 18 change in the law or its statutory construction. 4 19 2. The Code editor is directed to transfer provisions in 4 20 chapter 9H to a new chapter 202B, consistent with the 4 21 authority of the Code editor pursuant to chapter 2B, as 4 22 follows: 4 23 a. For consolidation into the first subchapter of new 4 24 chapter 202B, the following shall apply: 4 25 (1) The following provisions shall be transferred: 4 26 (a) Section 9H.2, unnumbered paragraph 1, as amended by 4 27 this Act, which shall be codified as a new section. 4 28 (b) Section 9H.1, subsections 6, 8, 9, 10, 11, 12, 13, 22, 4 29 27, 28, and 31, which shall be codified as a new section. 4 30 Section 9H.1, subsection 26A, as enacted in this Act, shall be 4 31 codified in the same section. Section 9H.1, subsections 29 4 32 and 32, as amended by this Act, shall be codified in that same 4 33 section. 4 34 (2) The subsections of section 9H.1, as consolidated into 4 35 a new section, shall be preceded by an unnumbered paragraph 1, 5 1 stating the following: "As used in this chapter, unless the 5 2 context otherwise requires:". 5 3 b. For consolidation into the second subchapter of new 5 4 chapter 202B, the following provisions shall be transferred: 5 5 (1) Section 9H.2, subsections 1 through 3, as amended by 5 6 this Act. 5 7 (2) Section 9H.2A, as amended by this Act. Section 9H.2, 5 8 subsection 4, shall be transferred and codified as a new 5 9 subsection in section 9H.2A as transferred. 5 10 c. For consolidation into the third subchapter of new 5 11 chapter 202B, the following sections shall be transferred: 5 12 9H.5B, 9H.9, 9H.10, and 9H.15; and section 9H.14 as amended by 5 13 this Act. 5 14 d. For the consolidation into the fourth subchapter of new 5 15 chapter 202B, the following sections shall be transferred: 5 16 9H.3 and 9H.11. 5 17 3. The Code editor is directed to transfer section 9H.6 to 5 18 chapter 10B. 5 19 4. In consolidating and transferring provisions, the Code 5 20 editor shall not provide references in the law text of a 5 21 section of chapter 9H to new chapter 202B. 5 22 Sec. 14. Section 9H.5A, Code 2003, is repealed. 5 23 DIVISION III 5 24 MISCELLANEOUS PROVISIONS 5 25 Sec. 15. SEVERABILITY. If any provision of section 9H.2, 5 26 or the application of that section, to any person or 5 27 circumstance is held invalid, the invalidity does not affect 5 28 other provisions of section 9H.2 or any other provision in 5 29 chapter 9H or 202B as those provisions existed prior to the 5 30 effective date of this Act, which shall be given effect 5 31 without the invalid provision or application, and to this end, 5 32 the provisions of this Act are severable. This section shall 5 33 not affect the transfer of provisions of chapter 9H as 5 34 provided in this Act. 5 35 Sec. 16. EFFECTIVE DATE. This Act, being deemed to 6 1 immediate importance, takes effect upon enactment. 6 2 EXPLANATION 6 3 This bill amends provisions in Code chapter 9H (Iowa's 6 4 corporate farming law), which in part provides for the 6 5 regulation of beef and pork processors that exercise control 6 6 over cattle or swine operations. 6 7 BACKGROUND. During the 2002 Legislative Session, the 6 8 general assembly enacted Senate File 2309 (2002 Iowa Acts, 6 9 chapter 1095) which amended a number of Code provisions, 6 10 including Code section 9H.2. The stated purpose of that 6 11 section is to preserve free and private enterprise, prevent 6 12 monopoly, and protect consumers. The 2002 legislation 6 13 expanded the section's provisions which, with some exceptions, 6 14 has prohibited a processor from owning, controlling, or 6 15 operating cattle and swine operations since 1975, and has 6 16 prohibited a processor from contracting for the care and 6 17 feeding of swine since 1988. The legislation is currently 6 18 subject to constitutional litigation. 6 19 DIVISION I. The division provides a definition of "person" 6 20 which specifically includes business associations as defined 6 21 in Senate File 2309. In other respects the definition is 6 22 similar to the definition found in Code section 4.1, which 6 23 provides for general definitions of words used throughout the 6 24 Code. 6 25 The division amends a number of provisions created in 6 26 Senate File 2309 which refer to retailers and swine producers 6 27 engaged in business operations. The bill strikes references 6 28 to business being carried out "in this state". The bill 6 29 amends the purposes language of Code section 9H.2 by providing 6 30 for how regulation is to be accomplished (regulating the 6 31 balance of competitive forces in beef and swine production, by 6 32 enhancing the welfare of the farming community, and by 6 33 preventing processors from gaining control of beef or swine 6 34 production). 6 35 The division strikes a provision which allows cooperative 7 1 associations to directly and indirectly contract for the care 7 2 and feeding of swine in this state. The division provides 7 3 that a person who is a party to such a contract that is in 7 4 compliance with the law prior to the bill's effective date has 7 5 until June 30, 2005, to comply with the bill's provisions. A 7 6 processor who violates Code section 9H.2 is subject to a civil 7 7 penalty of not more than $25,000. Each day a violation 7 8 continues is considered a separate offense. 7 9 The division amends a provision enacted in Senate File 2309 7 10 creating a definition of a qualified processor. Senate File 7 11 2309 provides a special exception for swine producers who hold 7 12 a threshold interest in a qualified processor, as long as the 7 13 swine producer's threshold interest is not more than 10 7 14 percent and the swine producer is not engaged in processing. 7 15 One requirement for a processor to be qualified is that not 7 16 less than 25 percent of the swine slaughtered by the processor 7 17 each day must be purchased through cash or spot market 7 18 purchases. The bill reduces the percentage of required cash 7 19 or spot market purchases to 10 percent. The bill provides 7 20 that cash or spot market purchases must be made, under the 7 21 same terms and conditions, from both sellers of swine who hold 7 22 a direct or indirect interest in the processor and sellers of 7 23 swine who do not hold a direct or indirect interest in the 7 24 processor. The bill provides that the qualified processor 7 25 cannot provide sellers of swine who hold a direct or indirect 7 26 interest in the processor with a preference over sellers of 7 27 swine who do not hold a direct or indirect interest in the 7 28 processor. 7 29 DIVISION II. The division directs the Code editor to 7 30 transfer provisions of the bill, along with other provisions 7 31 of Code chapter 9H, into a new Code chapter. As part of this 7 32 process the division creates new sections which repeat current 7 33 provisions providing for penalties and injunctive relief which 7 34 will be transferred to the new chapter. 7 35 The bill repeals Code section 9H.5A which has been replaced 8 1 by Code section 10B.4, enacted in 1998. Code section 9H.5A 8 2 has been suspended since that time. 8 3 DIVISION III. The division includes a severability clause 8 4 which is redundant to Code section 4.12. 8 5 The bill takes effect upon enactment. 8 6 LSB 2634XC 80 8 7 da/sh/8
Text: SSB01143 Text: SSB01145 Text: SSB01100 - SSB01199 Text: SSB Index Bills and Amendments: General Index Bill History: General Index
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