Senate Study Bill 1048 - IntroducedA Bill ForAn Act 1relating to mediation of certain farm disputes prior to
2the initiation of litigation.
3BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 Section 1. Section 13.15, subsection 2, paragraph b, Code
22017, is amended to read as follows:
3b. The compensation of a mediator shall be no more than
4twenty-five one hundred dollars per hour, and all parties shall
5contribute an equal amount of the cost.
6 Sec. 2. Section 654A.4, subsection 2, Code 2017, is amended
7to read as follows:
82. This chapter applies to a borrower who is a natural
9person operating a farm or any corporation, limited liability
10company, trust, or limited partnership as defined in section
119H.1.
12 Sec. 3. Section 654A.6, subsection 1, Code 2017, is amended
13by adding the following new paragraph:
14 NEW PARAGRAPH. c. The coordinator may adopt rules
15pursuant to chapter 17A to set a fee for filing a request
16for mediation under this section. The filing fee shall not
17exceed one hundred dollars, and shall be waived for any party
18demonstrating financial hardship to the farm mediation service.
19 Sec. 4. Section 654A.7, subsection 2, Code 2017, is amended
20by striking the subsection.
21 Sec. 5. Section 654A.11, subsection 1, Code 2017, is amended
22to read as follows:
231. If an agreement is reached between the borrower and
24the creditors, the mediator shall draft a written mediation
25agreement, have it the mediation agreement signed by the
26creditors and the borrower, and submit the mediation agreement
27to the farm mediation service.
28 Sec. 6. Section 654B.1, Code 2017, is amended by adding the
29following new subsection:
30 NEW SUBSECTION. 1A. “Coordinator” means the farm assistance
31program coordinator provided in section 13.13.
32 Sec. 7. Section 654B.1, subsection 5, Code 2017, is amended
33to read as follows:
345. “Farm resident” means a person holding an interest in
35farmland, in fee, under a real estate contract, or under a
-1-1lease, if the person manages farming operations on the land. A
2farm resident includes a natural person, or any corporation,
3limited liability company, trust, or limited partnership as
4defined in section 9H.1.
5 Sec. 8. Section 654B.3, subsection 1, Code 2017, is amended
6by adding the following new paragraph:
7 NEW PARAGRAPH. c. The coordinator may adopt rules
8pursuant to chapter 17A to set a fee for filing a request
9for mediation under this section. The filing fee shall not
10exceed one hundred dollars, and shall be waived for any party
11demonstrating financial hardship to the farm mediation service.
12 Sec. 9. Section 654C.1, Code 2017, is amended by adding the
13following new subsection:
14 NEW SUBSECTION. 1A. “Coordinator” means the farm assistance
15program coordinator provided in section 13.13.
16 Sec. 10. Section 654C.2, Code 2017, is amended by adding the
17following new subsection:
18 NEW SUBSECTION. 4. The coordinator may adopt rules
19pursuant to chapter 17A to set a fee for filing a request
20for mediation under this section. The filing fee shall not
21exceed one hundred dollars, and shall be waived for any party
22demonstrating financial hardship to the farm mediation service.
23EXPLANATION
24The inclusion of this explanation does not constitute agreement with
25the explanation’s substance by the members of the general assembly.
26This bill amends Code chapters 654A, 654B, and 654C, which
27provide for mediation affecting agricultural producers. Code
28chapter 654A requires mediation between creditors and farmers
29who are borrowers prior to the enforcement of a legal action to
30collect debt. Code chapter 654B requires mediation in disputes
31involving farmers who provide care and feeding to livestock
32under contract. Code chapter 654C allows for mediation between
33producers and neighbors negotiating for the construction of
34animal feeding operation structures closer than otherwise
35legally allowed to the neighbor’s property. Under each of
-2-1the Code chapters, the farm mediation service conducts the
2mediation.
3Mediation is a method for parties in a dispute to reach
4an accommodation prior to instituting a legal action. If an
5accommodation is reached, the parties execute a mediation
6agreement. If an accommodation is not reached, the mediator
7issues a mediation release which allows a plaintiff to file a
8claim for relief in district court. In the instance of Code
9chapter 654C, legal action is not at issue because mediation is
10initiated by the agricultural producer to obtain a waiver of a
11statutory requirement.
12Under current law, the compensation for the mediator is
13no more than $25 per hour, and all parties contribute an
14equal amount of the cost. The bill raises the mediator’s
15compensation to no more than $100 per hour.
16The bill provides that the farm assistance program
17coordinator may adopt rules to set a fee for filing a mediation
18request under Code section 654A.6 (mandatory mediation
19proceedings), Code section 654B.3 (mandatory mediation
20proceedings), and Code section 654C.2 (mediation proceedings).
21The filing fee cannot exceed $100, and may be waived for any
22party demonstrating financial hardship to the farm mediation
23service.
24Current law requires that the farm mediation service, after
25receiving a mediation request for a dispute between a creditor
26and a farmer who is a borrower, notify the borrower that legal
27assistance may be available without charge through the legal
28assistance for farmers program provided in Code chapter 13.
29The bill eliminates this requirement.
30Code chapter 654A applies to a borrower operating a farm
31who is a natural person, corporation, trust, or limited
32partnership. Code chapter 654B applies to farm residents,
33which are natural persons, corporations, trusts, or limited
34partnerships holding an interest in farmland and managing the
35farming operations on the land. The bill provides that a
-3-1limited liability company may be a borrower for purposes of
2Code chapter 654A and a farm resident for purposes of Code
3chapter 654B.
4Under Code chapter 654A, if a mediation agreement is
5reached between the borrower and the creditors, the mediator
6is required to draft a written mediation agreement, have it
7signed by the creditors, and submit the agreement to the farm
8mediation service. The bill requires that the borrower also
9sign the mediation agreement.
10The bill makes conforming changes.
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2the initiation of litigation.
3BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 Section 1. Section 13.15, subsection 2, paragraph b, Code
22017, is amended to read as follows:
3b. The compensation of a mediator shall be no more than
4twenty-five one hundred dollars per hour, and all parties shall
5contribute an equal amount of the cost.
6 Sec. 2. Section 654A.4, subsection 2, Code 2017, is amended
7to read as follows:
82. This chapter applies to a borrower who is a natural
9person operating a farm or any corporation, limited liability
10company, trust, or limited partnership as defined in section
119H.1.
12 Sec. 3. Section 654A.6, subsection 1, Code 2017, is amended
13by adding the following new paragraph:
14 NEW PARAGRAPH. c. The coordinator may adopt rules
15pursuant to chapter 17A to set a fee for filing a request
16for mediation under this section. The filing fee shall not
17exceed one hundred dollars, and shall be waived for any party
18demonstrating financial hardship to the farm mediation service.
19 Sec. 4. Section 654A.7, subsection 2, Code 2017, is amended
20by striking the subsection.
21 Sec. 5. Section 654A.11, subsection 1, Code 2017, is amended
22to read as follows:
231. If an agreement is reached between the borrower and
24the creditors, the mediator shall draft a written mediation
25agreement, have it the mediation agreement signed by the
26creditors and the borrower, and submit the mediation agreement
27to the farm mediation service.
28 Sec. 6. Section 654B.1, Code 2017, is amended by adding the
29following new subsection:
30 NEW SUBSECTION. 1A. “Coordinator” means the farm assistance
31program coordinator provided in section 13.13.
32 Sec. 7. Section 654B.1, subsection 5, Code 2017, is amended
33to read as follows:
345. “Farm resident” means a person holding an interest in
35farmland, in fee, under a real estate contract, or under a
-1-1lease, if the person manages farming operations on the land. A
2farm resident includes a natural person, or any corporation,
3limited liability company, trust, or limited partnership as
4defined in section 9H.1.
5 Sec. 8. Section 654B.3, subsection 1, Code 2017, is amended
6by adding the following new paragraph:
7 NEW PARAGRAPH. c. The coordinator may adopt rules
8pursuant to chapter 17A to set a fee for filing a request
9for mediation under this section. The filing fee shall not
10exceed one hundred dollars, and shall be waived for any party
11demonstrating financial hardship to the farm mediation service.
12 Sec. 9. Section 654C.1, Code 2017, is amended by adding the
13following new subsection:
14 NEW SUBSECTION. 1A. “Coordinator” means the farm assistance
15program coordinator provided in section 13.13.
16 Sec. 10. Section 654C.2, Code 2017, is amended by adding the
17following new subsection:
18 NEW SUBSECTION. 4. The coordinator may adopt rules
19pursuant to chapter 17A to set a fee for filing a request
20for mediation under this section. The filing fee shall not
21exceed one hundred dollars, and shall be waived for any party
22demonstrating financial hardship to the farm mediation service.
23EXPLANATION
24The inclusion of this explanation does not constitute agreement with
25the explanation’s substance by the members of the general assembly.
26This bill amends Code chapters 654A, 654B, and 654C, which
27provide for mediation affecting agricultural producers. Code
28chapter 654A requires mediation between creditors and farmers
29who are borrowers prior to the enforcement of a legal action to
30collect debt. Code chapter 654B requires mediation in disputes
31involving farmers who provide care and feeding to livestock
32under contract. Code chapter 654C allows for mediation between
33producers and neighbors negotiating for the construction of
34animal feeding operation structures closer than otherwise
35legally allowed to the neighbor’s property. Under each of
-2-1the Code chapters, the farm mediation service conducts the
2mediation.
3Mediation is a method for parties in a dispute to reach
4an accommodation prior to instituting a legal action. If an
5accommodation is reached, the parties execute a mediation
6agreement. If an accommodation is not reached, the mediator
7issues a mediation release which allows a plaintiff to file a
8claim for relief in district court. In the instance of Code
9chapter 654C, legal action is not at issue because mediation is
10initiated by the agricultural producer to obtain a waiver of a
11statutory requirement.
12Under current law, the compensation for the mediator is
13no more than $25 per hour, and all parties contribute an
14equal amount of the cost. The bill raises the mediator’s
15compensation to no more than $100 per hour.
16The bill provides that the farm assistance program
17coordinator may adopt rules to set a fee for filing a mediation
18request under Code section 654A.6 (mandatory mediation
19proceedings), Code section 654B.3 (mandatory mediation
20proceedings), and Code section 654C.2 (mediation proceedings).
21The filing fee cannot exceed $100, and may be waived for any
22party demonstrating financial hardship to the farm mediation
23service.
24Current law requires that the farm mediation service, after
25receiving a mediation request for a dispute between a creditor
26and a farmer who is a borrower, notify the borrower that legal
27assistance may be available without charge through the legal
28assistance for farmers program provided in Code chapter 13.
29The bill eliminates this requirement.
30Code chapter 654A applies to a borrower operating a farm
31who is a natural person, corporation, trust, or limited
32partnership. Code chapter 654B applies to farm residents,
33which are natural persons, corporations, trusts, or limited
34partnerships holding an interest in farmland and managing the
35farming operations on the land. The bill provides that a
-3-1limited liability company may be a borrower for purposes of
2Code chapter 654A and a farm resident for purposes of Code
3chapter 654B.
4Under Code chapter 654A, if a mediation agreement is
5reached between the borrower and the creditors, the mediator
6is required to draft a written mediation agreement, have it
7signed by the creditors, and submit the agreement to the farm
8mediation service. The bill requires that the borrower also
9sign the mediation agreement.
10The bill makes conforming changes.
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