Reprinted

March 6, 2001





HOUSE BILL No. 1975

_____


DIGEST OF HB 1975 (Updated March 5, 2001 4:19 PM - DI 104)



Citations Affected: IC 15-7.

Synopsis: Agricultural marketing and production contracts. Regulates agricultural marketing and production contracts. Requires agricultural marketing and production contracts to: (1) be in writing; (2) be executed in good faith; (3) provide for resolution of complaints through alternative dispute resolution; and (4) provide that Indiana law governs and controls the contract and that venue for any actions concerning the contract must lie in a county in Indiana where at least one party resides. Specifies certain issues that must be addressed in agricultural marketing and production contracts.

Effective: July 1, 2001.





Friend , Grubb




    January 17, 2001, read first time and referred to Committee on Agriculture, Natural Resources and Rural Development.
    February 27, 2001, amended, reported _ Do Pass.
    March 5, 2001, read second time, amended, ordered engrossed.







Reprinted

March 6, 2001

First Regular Session 112th General Assembly (2001)


PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana Constitution) is being amended, the text of the existing provision will appear in this style type, additions will appear in this style type, and deletions will appear in this style type.
Additions: Whenever a new statutory provision is being enacted (or a new constitutional provision adopted), the text of the new provision will appear in this style type. Also, the word NEW will appear in that style type in the introductory clause of each SECTION that adds a new provision to the Indiana Code or the Indiana Constitution.
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HOUSE BILL No. 1975



    A BILL FOR AN ACT to amend the Indiana Code concerning agriculture and animals.

Be it enacted by the General Assembly of the State of Indiana:

SOURCE: IC 15-7-10; (01)HB1975.2.1. -->     SECTION 1. IC 15-7-10 IS ADDED TO THE INDIANA CODE AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2001]:
     Chapter 10. Agricultural Marketing and Production Contracts     Sec. 1. As used in this chapter, "agricultural commodity" means livestock or grain produced primarily for sale, consumption, propagation, or other use by man or animals.
    Sec. 2. As used in this chapter, "good faith" means honesty in fact and the observance of reasonable commercial standards of fair dealing.
    Sec. 3. As used in this chapter, "marketing contract" means a contract between a producer and a processor, except the department of correction, regarding the purchase by the processor of the producer's agricultural commodity.
    Sec. 4. As used in this chapter, "production contract" means a contract between:
        (1) a producer and a processor, except the department of

correction, regarding the producer's production of the processor's agricultural commodity; or
        (2) two (2) producers regarding the production by one (1) producer of the other producer's agricultural commodity.
    Sec. 5. A marketing or production contract must meet the following conditions:
        (1) Be in writing.
        (2) Be executed in good faith, with full disclosure of all relevant information by each party.
        (3) Provide for resolution of disputes regarding the contract through alternative dispute resolution with the costs of the alternative dispute resolution paid equally by each party.
        (4) Provide that:
            (A) Indiana law governs and controls the contract; and
            (B) venue for any actions concerning the contract must lie in a county in Indiana where at least one (1) party resides.
        (5) Include the following terms of payment:
            (A) The basis of payment.
            (B) The payment method.
            (C) The payment schedule.
            (D) The effect of change in market price on contract price, if any.
            (E) The penalty for late payment.
            (F) The assignability of payments.
            (G) The decision whether payment may be made copayable to the producer's lender.
            (H) The responsibility for payment of the paying party's parent company, if the paying party is a subsidiary company.

    Sec. 6. A producer may use for seed in subsequent crop years any grain grown from a commercially produced seed stock. Notwithstanding any other law, this right may not be waived by contract.