202B.102 - DEFINITIONS.
202B.102 DEFINITIONS.
As used in this chapter, unless the context otherwise requires:
1. "Base price" means the price paid for swine, delivered to
the processor, before application of any premiums or discounts, and
expressed in dollars per hundred pounds of hot carcass weight as
calculated in the same manner as provided in 7 C.F.R. § 59.30.
2. "Business association" means a person organized under
statute or common law in this state or another jurisdiction for
purposes of engaging in a commercial activity on a profit,
cooperative, or not-for-profit basis, including but not limited to a
corporation or entity taxed as a corporation under the Internal
Revenue Code, nonprofit corporation, cooperative association,
partnership, limited partnership, limited liability company, limited
liability partnership, investment company, joint stock company, joint
stock association, or trust, including but not limited to a business
trust.
3. "Cash or spot market purchase" means the purchase of swine
by a processor from a seller, if the swine are slaughtered not more
than fourteen days after the date that the seller and the processor
agree on a date of delivery of the swine for slaughter and the base
price for purchasing the swine is determined by an oral or written
agreement between seller and processor executed on the day the swine
are delivered for slaughter.
4. "Cattle operation" means a location including but not
limited to a building, lot, yard, corral, or other place where cattle
for slaughter are fed or otherwise maintained.
5. "Contract feeder" means a person owning in the applicable
reporting year, as provided in section 202B.301, more than two
thousand five hundred swine or five thousand head of poultry, if the
swine or poultry are subject to a contract or contracts for care and
feeding by a person or persons other than the owner on land which is
not owned, leased, or held by the owner.
6. "Contract for the care and feeding of swine" means an oral
or written agreement executed between a person and the owner of
swine, under which the person agrees to care for and feed the owner's
swine on the person's premises. A contract for the care and feeding
of swine does not include an agreement for the sale or purchase of
swine.
7. "Cooperative association" means the same as defined in
section 10.1.
8. "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.
9. "Person" means an individual, business association,
government or governmental subdivision or agency, or any other legal
entity.
10. "Processor" means a person who alone or in conjunction
with others directly or indirectly controls the manufacturing,
processing, or preparation for sale of beef or pork products,
including the slaughtering of cattle or swine or the manufacturing or
preparation of carcasses or goods originating from the carcasses, if
the beef or pork products have a total annual wholesale value of
eighty million dollars or more for the person's tax year. A person
shall be deemed to be a processor if any of the following apply:
a. The person has a threshold interest in a processor which
is a business association. "Threshold interest" means a direct
or indirect interest in the business association, calculated as
follows:
(1) For a processor of beef products, the person's threshold
interest begins at ten percent.
(2) For a processor of pork products, the person's threshold
interest begins at ten percent for a processor of pork products
having a total annual wholesale value of at least eighty million
dollars and decreases to one percent for a processor of pork products
having a total annual wholesale value of at least two hundred sixty
million dollars. The amount of the decrease in the amount of the
threshold interest shall equal one percent for each increased
increment of twenty million dollars in total annual wholesale value.
b. The person holds an executive position in a processor of
pork products or owes a processor of pork products a fiduciary duty
if the processor directly or indirectly controls the processing of
pork products having a total annual wholesale value of two hundred
sixty million dollars or more. A person who held such an executive
position or owed a fiduciary duty shall be deemed to still hold the
position or owe the duty for a two-year period following the date
that the person relinquishes the position or duty. An executive
position in a processor organized as a business association includes
but is not limited to a member of a board of directors or an officer
of a corporation or cooperative association, a director or officer of
a joint stock company or joint stock association, a manager of a
limited liability company, a general partner of a limited
partnership, or a trustee of a trust.
11. "Qualified processor" means a processor of pork products
if all of the following apply:
a. (1) (a) Swine producers exercise a controlling interest in
the processor. "Controlling interest" means actual control or
the possession directly or indirectly of the power to direct or cause
the direction of the management and policies of a processor, whether
through the ownership of voting securities, by contract, or
otherwise.
(b) Of the total interest held by all persons in the processor,
swine producers hold at least sixty percent of the interest. In
addition, of the total interest held by all persons in the processor,
swine producers hold at least sixty percent of interests with voting
rights.
(2) Of the total interest held by all persons in the processor,
all retailers hold a total of not more than twenty percent of the
interest.
b. Another processor does not hold a direct or indirect
interest in the processor. However, this paragraph does not apply to
a person deemed to be a processor solely because the person holds a
threshold interest in the processor.
c. Not less than ten percent of the swine slaughtered by the
processor each day are purchased through cash or spot market
purchases.
d. The processor makes cash or spot market purchases of swine
under the same terms and conditions from both sellers of swine who
hold 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.
12. "Retailer" means a person who is engaged in the business
of selling pork products, if all of the following apply:
a. The pork products are sold only on a retail basis directly
to the ultimate purchasers of the pork products for consumption and
not for resale.
b. The person is not engaged in the slaughter of swine.
c. A processor does not have a direct or indirect interest in
the person.
13. "Swine operation" means a location where swine are fed or
otherwise maintained, including a building, lot, yard, or corral; and
swine which are fed or otherwise maintained at the location.
14. "Swine producer" means a person who owns, controls, or
operates a swine operation or who contracts for the care and feeding
of swine. Section History: Recent Form
2003 Acts, ch 115, §1--3, 10, 16, 19
Referred to in § 202B.201, 202B.202, 202B.301, 203.1, 203C.1,
459.102, 459A.103, 459B.103, 579A.1