House File 521 HOUSE FILE BY KUHN and WHITAKER Passed House, Date Passed Senate, Date Vote: Ayes Nays Vote: Ayes Nays Approved A BILL FOR 1 An Act relating to agricultural seed, by restricting certain 2 pricing practices, making penalties applicable, and providing 3 an effective date. 4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 5 TLSB 2708YH 80 6 da/sh/8 PAG LIN 1 1 Section 1. Section 199.1, Code 2003, is amended by adding 1 2 the following new subsections: 1 3 NEW SUBSECTION. 6A. "Genetically modified" means to alter 1 4 the genetic characteristics of a plant by modifying the 1 5 deoxyribonucleic acid of the plant's seed in a manner other 1 6 than by breeding or pollination. 1 7 NEW SUBSECTION. 14A. "Patent holder" means a person who 1 8 holds rights of intellectual property in a plant or plant 1 9 part, including but not limited to a genetically engineered 1 10 crop seed or crop originating from a genetically engineered 1 11 crop seed, which is granted under letters patent by the United 1 12 States patent and trademark office of the United States 1 13 department of commerce. 1 14 NEW SUBSECTION. 19A. "Seed labeler" means a person 1 15 required to label seed as provided in section 199.3 or 199.4. 1 16 Sec. 2. Section 199.8, Code 2003, is amended by adding the 1 17 following new subsection: 1 18 NEW SUBSECTION. 4. A person who is a patent holder or 1 19 seed labeler shall not engage in unfair pricing practices when 1 20 selling or offering for sale genetically modified agricultural 1 21 seed for the end purpose of crop production, regardless of 1 22 whether the purchaser is a producer or a vendor who resells 1 23 the agricultural seed. For purposes of this subsection, a 1 24 person engages in unfair pricing practices by charging a 1 25 purchaser an assessment including but not limited to a fee or 1 26 royalty, based on the genetic modification or the genetic 1 27 characteristics of the agricultural seed, but the person does 1 28 not charge the same assessment to another purchaser in this 1 29 state or in any other domestic or foreign market. Any 1 30 provision in a contract providing an assessment in violation 1 31 of this subsection is void. 1 32 Sec. 3. EFFECTIVE DATE. This Act, being deemed of 1 33 immediate importance, takes effect upon enactment. 1 34 EXPLANATION 1 35 This bill amends Code chapter 199, which regulates the sale 2 1 of seed including agricultural seed. The bill amends Code 2 2 section 199.8, which lists a number of illegal activities, by 2 3 prohibiting a person who is a patent holder or seed labeler of 2 4 agricultural seed from engaging in unfair pricing practices 2 5 when selling or offering for sale genetically modified 2 6 agricultural seed for the end purpose of crop production. 2 7 The bill provides that unfair pricing practices occur when 2 8 the person charges the purchaser an assessment based on the 2 9 agricultural seed's genetic modification, but the person does 2 10 not charge the same assessment to another purchaser in this 2 11 state or in any other domestic or foreign market. 2 12 The bill provides that a provision in a contract providing 2 13 for such an assessment is void. 2 14 According to Code section 199.13, a person who violates 2 15 Code section 199.8 is guilty of a simple misdemeanor. A 2 16 simple misdemeanor is punishable by confinement for no more 2 17 than 30 days or a fine of at least $50 but not more than $500, 2 18 or by both. 2 19 The bill takes effect upon enactment. 2 20 LSB 2708YH 80 2 21 da/sh/8