MISSISSIPPI LEGISLATURE

2000 Regular Session

To: Agriculture

By: Representatives Livingston, Malone, Miles, Hamilton, Eaton

AN ACT TO CREATE THE "MISSISSIPPI POULTRY FAIR PRACTICES ACT"; TO PROVIDE DEFINITIONS; TO PROVIDE PROHIBITIONS AND REQUIREMENTS FOR PROCESSORS AND PRODUCERS; TO CREATE THE MISSISSIPPI POULTRY INDUSTRY RESOLUTIONS BOARD WHICH SHALL PROMULGATE RULES AND REGULATIONS TO IMPLEMENT THE PROVISIONS OF THIS ACT; TO PROVIDE PENALTIES FOR VIOLATIONS; AND FOR RELATED PURPOSES.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:

SECTION 1. The Legislature finds that the production of poultry constitutes an important and significant portion of the state's economy and that it is beneficial to the citizens of this state to protect the vitality of this enterprise.

SECTION 2. For the purposes of this section, the following words and phrases shall have the meanings ascribed herein:

(a) "Producer" means any person engaged in the business of raising or caring for live poultry under a poultry-growing arrangement, whether the poultry is owned by such person or by another.

(b) "Poultry" means any domesticated bird, whether live or dead, and includes laying hens, broiler breeding hens, broiler breeder pullets, commercial egg hens, commercial egg pullets, broilers, roasters, turkey hens, turkey toms and ducks.

(c) "Poultry products" means eggs, poultry carcasses, poultry by-products or any part thereof.

(d) "Processor" means any person engaged in the business of obtaining live poultry or poultry products by purchase or under a poultry-growing arrangement for the purpose of slaughter by such person or by another, or any person engaged in the business of obtaining poultry eggs or the care of live poultry under a poultry-growing arrangement.

(e) "Poultry-growing arrangement" means any grow-out contract, marketing agreement or other arrangement under which a poultry producer raises or cares for live poultry or poultry products in accord with another's instructions.

SECTION 3. (1) No processor or producer shall engage in any unfair, unjustly discriminatory or deceptive act or practice as defined in this act in connection with any poultry or poultry-growing contract.

(2) Unfair, unjustly discriminatory or deceptive acts and practices include, but are not limited to, the following, each of which is declared to be a violation of this act:

(a) A processor's using coercion, intimidation, the threat of retaliation or the threat of contract termination or cancellation to impose, demand, compel or dictate the terms, payment or manner of payment or the signing of a contract by a producer;

(b) A processor's canceling a producer's contract based solely upon his ranking as it compares to the other producers;

(c) Any act or omission prohibited by the Packers and Stockyards Act, 7 USCS Section 181 et seq., or the rules and regulations promulgated thereunder;

(d) A producer's failing to maintain buildings, equipment, ingress or egress in a manner that is acceptable within industry standards;

(e) A producer's failing to follow the written day-to-day poultry fair practices of the processor.

SECTION 4. All processors and producers shall engage in the following fair practices:

(a) All live birds shall be weighed by a bonded weighmaster on certified scales. Provisions shall be made for alternate certified scales in the event the primary scales are "red tagged" by the State Weights and Measures Department. Producers, their family or employees, with proper identification, shall be allowed to watch, without prior notice, live birds being weighed.

(b) All feed shall be weighed under the same arrangement as provided in paragraph (a) of this section, including the observation of the weighing.

(c) Processors shall provide producers all documentation that impacts a producer's settlement check, in a legible manner, including, but not limited to:

(i) Producer's copy of United States Department of Agriculture form 9061-2.

(ii) A loading ticket, at the time of catching, that gives truck number, trailer number, number of birds per coop and number of full coops.

(iii) Copy of weigh tickets for live birds.

(iv) A copy of medication charges, either at the time of delivery or with settlement check.

(v) A sample computation of the payment formula, using the producer's actual figures. Producers shall produce and provide several sample computation formulas.

(d) Processors shall use all available means to insure proper handling of birds from farm to plant. Damage by the catching crew of the producer's equipment or facilities shall be reimbursed by his processor.

(e) Processors shall not require a producer to purchase or construct additional buildings, equipment or facilities, or additions, modifications or improvements thereto, after the parties have entered into a contract unless fair and equitable premiums are paid by the processor as compensation. A processor shall test, upon request of a producer, new equipment that a producer wishes to be added to the processor's approved equipment list.

(f) Producers and their immediate family who are employed by the companies in live production shall not be ranked with other contract producers.

(g) Producers may join or assist any organization or association of their choice. A producer's membership in any organization shall not affect his settlement or contract in any way.

(h) When requested by the producer, the processor shall furnish the producer a copy of veterinary reports within forty-eight (48) hours of the time the report is received by the processor.

(i) Processors shall provide producers with information on feed delivery procedures. Feed delivery trucks shall be sealed at the plant with corresponding, numbered seals that shall be listed on the feed delivery ticket. The seal shall not be broken unless the producer is not available at the time of actual delivery. The producer may request that he be notified by telephone before the truck leaves the feed mill.

(j) Processors shall provide producers applicable guidelines for broiler, pullet or breeder production.

SECTION 5. All contracts shall be entered into with a sense of fairness, and there is an implied promise of good faith as defined in Section 75-1-201(19) by all parties in any poultry or poultry products contract between a processor and a producer.

SECTION 6. (1) There is created the Mississippi Poultry Industry Resolutions Board. The board shall be composed of one (1) member appointed by the Governor who has agricultural interests and who is neither a producer nor a processor and whose initial term is six (6) years; one (1) member appointed by the Lieutenant Governor who has agricultural interests and who is neither a producer nor a processor and whose initial term is four (4) years; the Commissioner of Agriculture and Commerce; one (1) processor, or his designee, appointed by the Governor and whose initial term is two (2) years; and one (1) producer appointed by the Lieutenant Governor and whose initial term is two (2) years. After the initial appointments, each appointed member of the board shall serve a term of four (4) years. Any person who is a party to a poultry-growing arrangement may file a claim for resolution of any dispute pertaining to the poultry-growing arrangement with the Department of Agriculture and Commerce that may refer the claim for resolution to the board. The board shall promulgate rules and regulations to implement the provisions of this act and shall operate in accordance with the Administrative Procedures Law. If it is determined by a majority of the board that there is substantial evidence showing that a violation of this act has occurred, the commissioner, upon recommendation of the board, may levy a civil penalty in an amount not to exceed Five Thousand Dollars ($5,000.00) for each violation. The decision of the board shall be in writing, and it shall be delivered to the accused by certified mail. If any cost, fees or penalties assessed hereunder have not been paid, they may be collected through the court system. All fees, costs and penalties collected by the commissioner shall be placed in the State General Fund.

(2) Either party may appeal the decision of the board to the circuit court of the First Judicial District of Hinds County, Mississippi. The appellant shall have the obligation of having the record transcribed and filing same with the circuit court. The appeal shall otherwise be governed by all applicable laws and rules affecting appeals to circuit court. If no appeal is perfected within the required time, the decision of the board shall then become final.

(3) The decision of the circuit court may then be appealed by either party to the Mississippi Supreme Court in accordance with the existing law and rules affecting such appeals.

SECTION 7. This act shall take effect and be in force from and after its passage and shall stand repealed on July 1, 2003.