General Assembly: 80 (2003 Regular GA) - Chapter 115 - Regulation of farming and beef and pork production


Published: 2003-05-09

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282LAWS OF THE EIGHTIETH G.A., 2003 SESSIONCH. 114

a. To the person who is the subject of the record, to a member of that person’s immediate family, or to that person’s agent or representative duly authorized in writing. b. To a person requesting to examine or copy a record when the event that resulted in the

record being made occurred more than seventy-five years prior to the request. c. To a personwho is a funeral director licensed pursuant to chapter 156 andwho has custo-

dy of the body of a deceased veteran. d. When otherwise ordered by a court of competent jurisdiction. e. When otherwise required by a department or agency of the federal or state government

or a political subdivision thereof. f. To a person conducting researchwhohas receivedwritten approval from the county com-

missioner of veteran affairs to view the records.

Sec. 3. Section 331.608, subsection 6, Code 2003, is amended to read as follows: 6. If a certified copy of a public record is required to perfect the claim of a veteran in service

or honorably discharged or a claim of a dependent of the veteran, the certified copy shall be furnished by the custodian of the public record without charge.

Approved May 9, 2003

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CH. 115CH. 115

CHAPTER 115

REGULATION OF FARMING AND BEEF AND PORK PRODUCTION

S.F. 341

ANACT regulating the balance of competitive forces in swine and beef production by enhanc- ing thewelfare of the farming community and by preventing processors fromgaining con- trol of beef or swine production, providing for the transfer of provisions,making a penalty applicable, and providing for an effective date.

Be It Enacted by the General Assembly of the State of Iowa:

DIVISION I REGULATION OF PROCESSORS

Section 1. Section 9H.1, Code 2003, is amended by adding the following new subsection: NEW SUBSECTION. 26A. “Person” means an individual, business association, govern-

ment or governmental subdivision or agency, or any other legal entity.

Sec. 2. Section 9H.1, subsection 29, unnumbered paragraph 1, Code 2003, is amended to read as follows: “Retailer” means a person who is engaged in the business of selling pork products in this

state, if all of the following apply:

Sec. 3. Section 9H.1, subsection 32, Code 2003, is amended to read as follows: 32. “Swine producer” means a person who owns, controls, or operates a swine operation in

this state or who contracts for the care and feeding of swine in this state.

Sec. 4. Section 9H.2, unnumbered paragraph 1, Code 2003, is amended to read as follows: The purpose of this section is to preserve free and private enterprise, preventmonopoly, and

also to protect consumers by regulating the balance of competitive forces in beef and swine

283 LAWS OF THE EIGHTIETH G.A., 2003 SESSION CH. 115

production, by enhancing the welfare of the farming community, and also by preventing pro- cessors from gaining control of beef or swine production.

Sec. 5. Section 9H.2, subsection 1, paragraph b, subparagraph (2), Code 2003, is amended to read as follows: (2) Directly or indirectly contract for the care and feeding of swine in this state. However,

this subparagraph does not apply to a cooperative association organized under chapter 497, 498, 499, or 501, if the cooperative association contracts for the care and feeding of swine with a member of the cooperative association who is actively engaged in farming. This subpara- graph does not apply to an association organized as a cooperative in which another cooper- ative association organized under chapter 497, 498, 499, or 501 is a member, if the association contractswith amemberwhich is a cooperative association organized under chapter 497, 498, 499, or 501,which contracts for the care and feedingof swinewith amemberof the cooperative who is actively engaged in farming.

Sec. 6. Section 9H.2, subsection 4, Code 2003, is amended to read as follows: 4. A processor which was in compliance with this section prior to April 5, 2000, and which

was in violation of this section as a result of 2000 IowaActs, chapter 1048, shall have until June 30, 2004 2006, to comply with 2000 Iowa Acts, chapter 1048. A processor shall not take action on or after April 5, 2000, which would be in violation of this section.

Sec. 7. Section 9H.2A, Code 2003, is amended by adding the following new subsection: NEW SUBSECTION. 0A. A cooperative association which is a party to a contract for the

care and feedingof swine in compliancewith section 9H.2 prior to the effective date of thisAct, andwhich is in violation of section 9H.2, as amended by thisAct, shall have until June 30, 2007, to comply with section 9H.2, as amended by this Act. Notwithstanding any provision of this section, a cooperative association shall not take an

action on or after the effective date of this Act that would be in violation of section 9H.2, as amended by this Act.

Sec. 8. Section 9H.2A, subsections 1 through 3, Code 2003, are amended to read as follows: 1. A processor that was in compliance with section 9H.2, Code 2001, prior to January 1,

2002, andwhich is in violation of section 9H.2, as amendedby thisAct 2002Acts, chapter 1095, shall have until June 30, 2004 2006, to comply with section 9H.2, as amended by this Act 2002 Acts, chapter 1095. 2. Notwithstanding any provision of this section, a processor shall not take an action on or

after January 1, 2002, that would be in violation of section 9H.2, as amended by this Act 2002 Acts, chapter 1095. 3. The two-year period that a personwhoholds an executive position in a processor or owes

a processor a fiduciary duty and thus is deemed to be a processor as provided in section 9H.1, subsection 27, paragraph “b”, shall not apply if the person held the position or owed the duty on January 1, 2002, and relinquishes the position or duty on or before June 30, 2004 2006.

Sec. 9. Section 9H.2A, subsection 4, Code 2003, is amended by striking the subsection.

Sec. 10. Section 9H.1, subsection 28, paragraph c, Code 2003, is amended to read as fol- lows: c. Not less than twenty-five ten percent of the swine slaughtered by the processor each day

are purchased through cash or spot market purchases from sellers of swine who do not hold a direct or indirect interest in the processor. d. The processor makes cash or spot market purchases of swine under the same terms and

conditions fromboth sellers of swinewhohold a direct or indirect interest in the processor and sellers of swine who do not hold a direct or indirect interest in the processor. In making such cash or spot market purchases of swine, the processor shall not provide sellers of swine who hold a direct or indirect interest in the processor with a preference over sellers of swine who do not hold a direct or indirect interest in the processor.

284LAWS OF THE EIGHTIETH G.A., 2003 SESSIONCH. 115

DIVISION II TRANSFER AND ELIMINATION OF CODE PROVISIONS FOR PURPOSES OF

ENHANCING READABILITY

Sec. 11. Section 9H.1, Code 2003, is amended by adding the following new subsection: NEWSUBSECTION. 22A. “Indirect” means to act or attempt to accomplish an act through

an interest in a business association, through one or more affiliates or intermediaries, or by any method other than a direct approach, including by any circuitous or oblique method.

Sec. 12. NEW SECTION. 9H.3A PENALTIES — INJUNCTIVE RELIEF. The courts of this state may prevent and restrain violations of this chapter through the is-

suance of an injunction. The attorney general or a county attorney shall institute suits on be- half of the state to prevent and restrain violations of this chapter.

Sec. 13. Section 9H.14, Code 2003, is amended to read as follows: 9H.14 DUTIES OF SECRETARY OF STATE. The secretary of state shall notify the attorney generalwhen the secretary of state has reason

to believe a violation of this chapter has occurred. It is the intent of this section that informa- tion shall bemade available to members of the general assembly and appropriate committees of the general assembly in order to determine the extent of farming production operations be- ing carried out in this state by corporations and other business entities contract feeders and processors and the effect of such farmingpracticesupon theeconomyof this state. The reports of corporations, limited liability companies, limited partnerships, trusts, contractors, and con- tract feeders and processors required in this chapter shall be confidential reports except as to the attorney general for review and appropriate actionwhen necessary. The secretary of state shall assist any committee of the general assembly existing or established for the purposes of studying the effects of this chapter and the practices this chapter seeks to study and regulate.

Sec. 14. Section 10B.4A, unnumbered paragraph 1, Code 2003, is amended to read as fol- lows: The secretary of state shall not prepare or distribute forms for reports or file reports other-

wise required pursuant to section 9H.5A, 9I.8, or 501.103. A person required to file a report pursuant to this chapter is not required to file a report under those sections.

Sec. 15. Section 331.756, subsection 33, Code 2003, is amended to read as follows: 33. Institute legal procedures on behalf of the state to prevent violations of the corporate or

partnership farming laws as provided in section 9H.3 chapter 9H or 202B.

Sec. 16. DIRECTIONS TO CODE EDITOR. 1. The purpose of this section is only to enhance the readability of provisions of the Code,

and shall not be construed as ameasure intended to accomplish any substantive change in the law or its statutory construction. 2. The Code editor is directed to transfer provisions in chapter 9H to a new chapter 202B,

consistent with the authority of the Code editor pursuant to chapter 2B, as follows: a. For consolidation into the first subchapter of new chapter 202B, the following shall apply: (1) The following provisions shall be transferred: (a) Section 9H.2, unnumbered paragraph 1, as amended by this Act, which shall be codified

as a new section. The Code editor shall substitute the term “chapter” for “section” in the law text. (b) Section 9H.1, subsections 6, 8, 9, 10, 11, 12, 13, 22, 27, and 31, which shall be codified

as a new section. Section 9H.1, subsection 26A, as enacted in this Act, shall be codified in the same section. Section 9H.1, subsections 28, 29 and 32, as amended by this Act, shall be codi- fied in that same section. (2) The subsections of section 9H.1, as consolidated into a new section, shall be preceded

by an unnumbered paragraph 1, stating the following: “As used in this chapter, unless the context otherwise requires:”.

285 LAWS OF THE EIGHTIETH G.A., 2003 SESSION CH. 116

b. For consolidation into the second subchapter of new chapter 202B, the following provi- sions shall be transferred: (1) Section 9H.2, subsections 1 through 3, as amended by this Act. (2) Section 9H.2A, as amended by this Act. Section 9H.2, subsection 4, shall be transferred

and codified as a new subsection in section 9H.2A as transferred. c. For consolidation into the third subchapter of new chapter 202B, the following sections

shall be transferred: 9H.5B, 9H.9, 9H.10, and 9H.15; and section 9H.14 as amended by this Act. d. For consolidation into the fourth subchapter of new chapter 202B, the following sections

shall be transferred: 9H.3 and 9H.11. 3. The Code editor is directed to transfer section 9H.6 to chapter 10B. 4. In consolidating and transferring provisions, the Code editor shall not provide references

in the law text of a section of chapter 9H to new chapter 202B.

Sec. 17. Section 9H.5A, Code 2003, is repealed.

DIVISION III MISCELLANEOUS PROVISIONS

Sec. 18. SEVERABILITY. If any provision of section 9H.2, or the application of that sec- tion, to any person or circumstance is held invalid, the invalidity does not affect other provi- sions of section 9H.2 or any other provision in chapter 9H or 202B as those provisions existed prior to the effective date of this Act, which shall be given effect without the invalid provision or application, and to this end, the provisions of this Act are severable. This section shall not affect the transfer of provisions of chapter 9H as provided in this Act.

Sec. 19. EFFECTIVE DATE. This Act, being deemed of immediate importance, takes ef- fect upon enactment.

Approved May 9, 2003

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CH. 116CH. 116

CHAPTER 116

ELECTRIC ENERGY TRANSMISSION — INVESTMENTS BY CITIES OPERATING ELECTRIC UTILITIES

S.F. 405

AN ACT relating to the authority of a city to acquire equity interests in business entities for the purpose of participating in electric energy transmission service.

Be It Enacted by the General Assembly of the State of Iowa:

Section 1. NEW SECTION. 390.8 EQUITY INVESTMENT IN INDEPENDENT TRANS- MISSION COMPANY. In addition to the powers conferred upon a city elsewhere in this chapter, any city operating

a city electric utility on January 1, 2003, may enter into agreements with and acquire equity interests in independent transmission companies or similar independent transmission entities inwhich theyareparticipating that are approved by the federal energy regulatory commission. The purpose of such equity investments shall be tomitigate expenses incurred by the city elec- tric utility due to its procurement of electric transmission service or to otherwise facilitate