House Bill NO. 1444

By Senator(s) Committee

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

(c) A grower failing to diligently follow the written day-to-day poultry management practices of the processor.

(d) A grower failing to maintain buildings, equipment, engress or egress in a manner that is acceptable within industry standards.

SECTION 4. 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 5. (1) There is created the Mississippi Poultry Industry Resolutions Board. The board shall be composed of the following:

(a) The Executive Director of the Veterinary Diagnostic Laboratory;

(b) The Head of the Poultry Science Department at Mississippi State University;

(c) One (1) producer appointed by the Mississippi Farm Bureau Federation, whose initial term is four (4) years;

(d) One (1) producer appointed by the Mississippi Farm Bureau Federation, whose initial term is two (2) years;

(e) One (1) processor appointed by the Mississippi Farm Bureau Federation, whose initial term is four (4) years; and

(f) One (1) processor appointed by the Mississippi Farm Bureau Federation, 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 have jurisdiction over all parties to any such poultry-growing arrangement referred to it for resolution, as to any issue regarding the claim for resolution. The board shall promulgate rules and regulations to implement the provisions of this act and shall operate in accordance with the Administrative Procedures Law. Rules and regulations adopted by the board to implement this act shall be no more stringent or extensive in scope, coverage and effect than regulations adopted under the Packers and Stockyards Act of 1921, as amended. The board shall determine the meaning of the term "fair practices" under this act. When determining fair practices under this act, the board's determination of the meaning of fair practices shall be no more stringent or extensive in scope, coverage and effect than the meaning under the Packers and Stockyards Act of 1921, as amended and applicable regulations promulgated under that act. 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 board may levy a civil penalty in an amount not to exceed One Thousand Dollars ($1,000.00) 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 of Agriculture and Commerce 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 6. Sections 1 through 5 of this act shall stand repealed on July 1, 2004.

SECTION 7. The Mississippi State University Cooperative Extension Service and the Veterinary Diagnostic Laboratory shall utilize existing staff disease diagnostic specialists to work statewide with poultry producers and processors to supply the producers and processors with the most recent research developments in the industry. The Director of the Cooperative Extension Service and the Director of the Veterinary Diagnostic Laboratory shall report on or before November 1, 2000, to the Chairmen of the Senate Appropriations and Agriculture Committees and the Chairmen of the House of Representatives Appropriations and Agriculture Committees on the current status of the poultry industry and any specific recommendations for additional poultry specialists or disease diagnostic specialists.

SECTION 8. This act shall take effect and be in force from and after its passage.

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 THAT FAIR PRACTICES UNDER THIS ACT SHALL BE NO MORE STRINGENT OR EXTENSIVE IN SCOPE, COVERAGE AND EFFECT THAN THE PACKERS AND STOCKYARDS ACT; TO PROVIDE PENALTIES FOR VIOLATIONS; TO DIRECT THE COOPERATIVE EXTENSION SERVICE AND THE VETERINARY DIAGNOSTIC LABORATORY TO PROVIDE ASSISTANCE TO POULTRY PRODUCERS AND PROCESSORS; AND FOR RELATED PURPOSES.