House File 392 - Introduced
HOUSE FILE
BY WHITAKER
Passed House, Date Passed Senate, Date
Vote: Ayes Nays Vote: Ayes Nays
Approved
A BILL FOR
1 An Act providing for the free association of contract producers
2 of agricultural commodities and providing a penalty.
3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
4 TLSB 2413HH 82
5 da/je/5
PAG LIN
1 1 Section 1. Section 202.1, Code 2007, is amended by adding
1 2 the following new subsection:
1 3 NEW SUBSECTION. 1A. "Agricultural producer" means a
1 4 person who produces a commodity.
1 5 Sec. 2. Section 202.1, subsection 6, Code 2007, is amended
1 6 to read as follows:
1 7 6. "Contract producer" means a person an agricultural
1 8 producer who holds a legal interest in a contract operation
1 9 and who produces a commodity at the contract producer's
1 10 contract operation under a production contract executed
1 11 pursuant to section 202.2.
1 12 Sec. 3. NEW SECTION. 202.3A FREE ASSOCIATION.
1 13 1. A contractor shall not act or attempt to act in a
1 14 coercive or retaliatory manner that restricts a contract
1 15 producer from associating with persons, including but not
1 16 limited to communicating with another agricultural producer or
1 17 affiliating with an organization whose members are
1 18 agricultural producers.
1 19 2. Any provision in a contract executed between a contract
1 20 producer and a contractor, including a production contract, is
1 21 void if the provision restricts a contract producer from
1 22 associating with persons, including but not limited to
1 23 communicating with another agricultural producer or
1 24 affiliating with an organization whose members are
1 25 agricultural producers.
1 26 Sec. 4. Section 202.5, Code 2007, is amended to read as
1 27 follows:
1 28 202.5 PENALTIES.
1 29 1. A contractor who executes a production contract that
1 30 includes a confidentiality provision in a production contract
1 31 in violation of section 202.3 is guilty of a fraudulent
1 32 practice as provided in section 714.8.
1 33 2. A contractor who acts or attempts to act in a coercive
1 34 or retaliatory manner in violation of section 202.3A is guilty
1 35 of an aggravated misdemeanor.
2 1 EXPLANATION
2 2 In 1999, the general assembly enacted House File 322 (1999
2 3 Iowa Acts, ch. 169) which provided for the production and
2 4 purchasing of agricultural commodities by regulating the
2 5 relationship between a contractor and a contract producer. A
2 6 contractor is a person who contracts with an agricultural
2 7 producer to produce a commodity on property held by the
2 8 agricultural producer. The agricultural producer is referred
2 9 to as a contract producer. The contract is referred to as a
2 10 production contract and commodity means crops, raw milk, and
2 11 livestock.
2 12 This bill creates a new Code section which prohibits a
2 13 contractor from acting or attempting to act in a coercive or
2 14 retaliatory manner that restricts a contract producer from
2 15 associating with persons including communicating with other
2 16 agricultural producers or affiliating with agricultural
2 17 producer organizations. The bill provides that any provision
2 18 in a contract executed between a contract producer and a
2 19 contractor is void if the provision restricts a contract
2 20 producer from associating with such persons.
2 21 The bill also provides that a contractor who acts or
2 22 attempts to act in a coercive or retaliatory manner in
2 23 violation of the bill's prohibition is guilty of an aggravated
2 24 misdemeanor. An aggravated misdemeanor is punishable by
2 25 confinement for no more than two years and a fine of at least
2 26 $625 but not more than $6,250.
2 27 LSB 2413HH 82
2 28 da:nh/je/5