Bill Text: IA SF2314 | 2017-2018 | 87th General Assembly | Enrolled

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Bill Title: A bill for an act relating to certain corporations doing business in this state, including restrictions and requirements imposed on nonprofit corporations acquiring agricultural land used in farming, and the duties and liabilities of directors of for-profit and nonprofit corporations. (Formerly SSB 3105.) Effective 7-1-18.

Spectrum: Committee Bill

Status: (Passed) 2018-05-04 - Signed by Governor. S.J. 1059. [SF2314 Detail]

Download: Iowa-2017-SF2314-Enrolled.html

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Senate File 2314 - Enrolled




                              SENATE FILE       
                              BY  COMMITTEE ON JUDICIARY

                              (SUCCESSOR TO SSB
                                  3105)

                              (COMPANION TO HF 2320
                                  BY COMMITTEE ON
                                  JUDICIARY)
 \5
                                   A BILL FOR
 \1
                                       Senate File 2314

                             AN ACT
 RELATING TO CERTAIN CORPORATIONS DOING BUSINESS IN THIS
    STATE, INCLUDING RESTRICTIONS AND REQUIREMENTS IMPOSED ON
    NONPROFIT CORPORATIONS ACQUIRING AGRICULTURAL LAND USED IN
    FARMING, AND THE DUTIES AND LIABILITIES OF DIRECTORS OF
    FOR=PROFIT AND NONPROFIT CORPORATIONS.

 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
                           DIVISION I
       NONPROFIT CORPORATIONS ACQUIRING AGRICULTURAL LAND
    Section 1.  Section 9H.1, subsection 20, Code 2018, is
 amended to read as follows:
    20.  "Nonprofit corporation" means any of the following:
    a.  Corporations organized under the provisions of chapter
 504, Code 1989, or current chapter 504; or A corporation as
 defined in section 504.141 that is not a foreign corporation
 as described in paragraph "b".
    b.  Corporations which qualify under 26 U.S.C. {501(c)(3) A
 foreign corporation as defined in section 504.141.
    Sec. 2.  Section 9H.4, subsection 1, paragraph b,
 subparagraph (3), subparagraph division (a), subparagraph
 subdivisions (i) and (iv), Code 2018, are amended to read as
 follows:
    (i)  The corporation or limited liability company must not
 hold the agricultural land other than as a lessee. The term
 of the lease must be for not more than twelve years. The
 corporation or limited liability company shall not renew a
 lease. The corporation or limited liability company shall not
 enter into a lease under this subparagraph subdivision, if the
 corporation or limited liability company has ever entered into
 another lease under this subparagraph (3), whether or not the
 lease is in effect. However, this subparagraph subdivision
 does not apply to a domestic nonprofit corporation organized
 under chapter 504, Code 1989, or current chapter 504 as defined
 in section 9H.1, subsection 20, paragraph "a".
    (iv)  The corporation or limited liability company must
 deliver a copy of the lease to the secretary of state. The
 secretary of state shall notify the lessee of receipt of the
 copy of the lease. However, this subparagraph division does
 not apply to a domestic nonprofit corporation organized under
 chapter 504, Code 1989, or current chapter 504 as defined in
 section 9H.1, subsection 20, paragraph "a".
    Sec. 3.  Section 9H.4, subsection 1, paragraph c, Code 2018,
 is amended to read as follows:
    c.  Agricultural land, including a leasehold interests
  interest, acquired by a nonprofit corporation organized
 under the provisions of chapter 504, Code 1989, and current
 chapter 504 as defined in section 9H.1, subsection 20,
 paragraph "a", including land acquired and operated by or for
 a state university for research, experimental, demonstration,
 foundation seed increase or test purposes and land acquired
 and operated by or for nonprofit corporations organized
 specifically for research, experimental, demonstration,
 foundation seed increase or test purposes in support of or in
 conjunction with a state university.
    Sec. 4.  Section 10B.1, subsection 9, Code 2018, is amended
 by striking the subsection and inserting in lieu thereof the
 following:
    9.  "Nonprofit corporation" means the same as defined in
 section 9H.1.
                           DIVISION II
                CORPORATIONS FOR PECUNIARY PROFIT
    Sec. 5.  Section 491.16A, Code 2018, is amended to read as
 follows:
    491.16A  Directors and officers ==== duties and liabilities.
    Sections 490.830, 490.831, and 490.833, sections 490.840
  through 490.842, sections 490.860 through 490.863, and section
 490.870 apply to corporations organized under or subject to
 this chapter.
                          DIVISION III
             REVISED IOWA NONPROFIT CORPORATION ACT
    Sec. 6.  Section 504.832, subsection 1, paragraph a, Code
 2018, is amended to read as follows:
    a.  That section 504.202, subsection 2, paragraph "d", or
 section 504.901 or the protection afforded by section 504.833
 or 504.836, if interposed as a bar to the proceeding by the
 director, does not preclude liability.


                                                                                            CHARLES SCHNEIDE


                                                                                            LINDA UPMEYER


                                                                                            W. CHARLES SMITH


                                                                                            KIM REYNOLDS

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