HF 2197

as introduced - 82nd Legislature (2001 - 2002) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to agriculture; making it unfair for 
  1.3             processors to retaliate or discriminate against 
  1.4             producers who exercise rights, including the joining 
  1.5             of producer associations; providing for enforcement; 
  1.6             imposing civil and criminal penalties; proposing 
  1.7             coding for new law in Minnesota Statutes, chapter 17. 
  1.8   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.9      Section 1.  [17.9444] [DEFINITIONS.] 
  1.10     Subdivision 1.  [APPLICATION.] The definitions in this 
  1.11  section apply to sections 17.9444 to 17.9447. 
  1.12     Subd. 2.  [CONTRACT INPUT.] "Contract input" means a 
  1.13  commodity or an organic or synthetic substance or compound that 
  1.14  is used to produce a commodity, including, but not limited to: 
  1.15     (1) livestock or plants; 
  1.16     (2) agricultural seeds; 
  1.17     (3) semen or eggs for breeding livestock; and 
  1.18     (4) a fertilizer or pesticide. 
  1.19     Subd. 3.  [PRODUCER RIGHT.] "Producer right" means a right 
  1.20  listed in section 17.9445. 
  1.21     Sec. 2.  [17.9445] [RIGHTS.] 
  1.22     Subdivision 1.  [RIGHT TO JOIN ASSOCIATION.] A producer has 
  1.23  the right to join, belong to, or refrain from joining or 
  1.24  belonging to an association of producers. 
  1.25     Subd. 2.  [RIGHT TO CONTRACT.] A producer has the right to 
  1.26  enter into a membership agreement or marketing contract with an 
  2.1   association of producers, a processor, or another producer and 
  2.2   to exercise contractual rights under that membership agreement 
  2.3   or marketing contract. 
  2.4      Subd. 3.  [RIGHT TO BE A WHISTLEBLOWER.] A producer has the 
  2.5   right to lawfully provide statements or information regarding 
  2.6   alleged improper actions or violations of law by a contractor or 
  2.7   processor, including statements to the United States Secretary 
  2.8   of Agriculture or to a law enforcement agency.  This right does 
  2.9   not include the right to make statements or provide information 
  2.10  if the statements or information are determined to be libelous 
  2.11  or slanderous. 
  2.12     Subd. 4.  [RIGHT TO USE PRODUCER LIEN.] A producer has the 
  2.13  right to file, continue, terminate, or enforce a lien under 
  2.14  section 514.945. 
  2.15     Subd. 5.  [RIGHT TO REVIEW PRODUCTION CONTRACTS.] A 
  2.16  contract producer has the right to utilize protections to review 
  2.17  production contracts under section 17.941. 
  2.18     Subd. 6.  [RIGHT TO DISCLOSE CONTRACTUAL TERMS.] A producer 
  2.19  has the right to disclose the terms of agricultural contracts 
  2.20  under section 17.710. 
  2.21     Subd. 7.  [RIGHT TO EXERCISE OTHER PROTECTIONS.] A producer 
  2.22  has the right to enforce other protections afforded by this 
  2.23  section or other laws or regulations. 
  2.24     Sec. 3.  [17.9446] [UNFAIR PRACTICES.] 
  2.25     In connection with an agricultural contract, a contractor 
  2.26  or processor must not knowingly engage or permit an employee or 
  2.27  agent to engage in any of the following practices: 
  2.28     (1) taking actions to coerce, intimidate, disadvantage, 
  2.29  retaliate against, or discriminate against a producer because 
  2.30  the producer exercises or attempts to exercise a producer right, 
  2.31  including actions affecting: 
  2.32     (i) execution, termination, extension, or renewal of an 
  2.33  agricultural contract; 
  2.34     (ii) treatment of a producer, including providing 
  2.35  discriminatory or preferential terms in an agricultural contract 
  2.36  or interpreting terms of an existing agricultural contract in a 
  3.1   discriminatory or preferential manner as they relate to the 
  3.2   price paid for a commodity, the quality or the quantity of a 
  3.3   commodity demanded, or financing, including investment 
  3.4   requirements; 
  3.5      (iii) altering the quality, quantity, or delivery times of 
  3.6   contract inputs provided to the producer; or 
  3.7      (iv) the grant of a reward or imposition of a penalty, 
  3.8   including the denial of a reward.  The reward or penalty may be 
  3.9   in any form, including, but not limited to, financial rewards or 
  3.10  penalties.  Financial rewards or penalties may relate to loans, 
  3.11  bonuses, or inducements; 
  3.12     (2) providing false information to the producer, including 
  3.13  information relating to any of the following: 
  3.14     (i) a producer with whom the producer associates or an 
  3.15  association of producers or an agricultural organization with 
  3.16  which the producer is affiliated, including, but not limited to, 
  3.17  the character of the producer and the condition of the finances 
  3.18  or the management of the association of producers or 
  3.19  agricultural organization; or 
  3.20     (ii) producer rights provided by this section or other 
  3.21  provisions of law; 
  3.22     (3) refusing to provide to a contract producer upon request 
  3.23  the statistical information and data used to determine 
  3.24  compensation paid to the contract producer under a production 
  3.25  contract, including, but not limited to, feed conversion rates, 
  3.26  feed analyses, origination, and breeder history; 
  3.27     (4) refusing to allow a contract producer or the contract 
  3.28  producer's designated representative to actually observe at the 
  3.29  time of weighing the weights and measures used to determine the 
  3.30  contract producer's compensation under a production contract; 
  3.31     (5) executing an agricultural contract in violation of the 
  3.32  recapture of capital investment requirements of section 17.92; 
  3.33     (6) executing an agricultural contract in violation of the 
  3.34  disclosure of risks and readability requirements of sections 
  3.35  17.91, 17.941, 17.942, and 17.943; 
  3.36     (7) executing an agricultural contract which includes a 
  4.1   confidentiality provision in violation of section 17.710; 
  4.2      (8) executing an agricultural contract without a mediation 
  4.3   or arbitration provision as required under section 17.91; 
  4.4      (9) executing an agricultural contract that includes a 
  4.5   waiver of any producer right or any obligation of a contractor 
  4.6   or processor established under this chapter; 
  4.7      (10) using the performance of any other contract producer 
  4.8   to determine the compensation of a contract producer under a 
  4.9   production contract or as the basis of the termination, 
  4.10  cancellation, or renewal of a production contract; or 
  4.11     (11) executing an agricultural contract requiring the 
  4.12  application of the law of another state in lieu of this chapter. 
  4.13     Sec. 4.  [17.9447] [PENALTIES AND ENFORCEMENT.] 
  4.14     Subdivision 1.  [CIVIL PENALTY.] A contractor or processor 
  4.15  committing an unfair practice under section 17.9446 is subject 
  4.16  to a civil penalty of up to $10,000 per violation. 
  4.17     Subd. 2.  [MISDEMEANOR.] A contractor or processor 
  4.18  committing an unfair practice under section 17.9446 is guilty of 
  4.19  a misdemeanor. 
  4.20     Subd. 3.  [PRIVATE CAUSE OF ACTION.] A producer who suffers 
  4.21  damages because of a contractor's or processor's violation of 
  4.22  this chapter may obtain appropriate legal and equitable relief, 
  4.23  including damages, by civil action.  In such a civil action 
  4.24  against the contractor or processor, the court shall award the 
  4.25  producer who is the prevailing party reasonable attorney fees 
  4.26  and other litigation expenses. 
  4.27     In order to obtain injunctive relief, the producer is not 
  4.28  required to post a bond, prove the absence of an adequate remedy 
  4.29  at law, or show the existence of special circumstances, unless 
  4.30  the court for good cause orders otherwise.  The court may order 
  4.31  any form of prohibitory or mandatory relief that is appropriate 
  4.32  under principles of equity, including, but not limited to, 
  4.33  issuing a temporary or permanent restraining order. 
  4.34     Subd. 4.  [ENFORCEMENT BY ATTORNEY GENERAL.] The attorney 
  4.35  general may enforce the provisions of section 17.9445.  In 
  4.36  enforcing the provisions of this section, the attorney general 
  5.1   may: 
  5.2      (1) apply to the district court for an injunction to do any 
  5.3   of the following: 
  5.4      (i) restrain a contractor or processor from engaging in 
  5.5   conduct or practices in violation of this chapter; and 
  5.6      (ii) require a contractor or processor to comply with a 
  5.7   provision of this chapter; and 
  5.8      (2) bring an action in district court to enforce penalties 
  5.9   provided in subdivision 1. 
  5.10     Sec. 5.  [EFFECTIVE DATE.] 
  5.11     Sections 1 to 4 apply to all agriculture contracts 
  5.12  regardless of the date the agriculture contract is executed, 
  5.13  except for Minnesota Statutes, section 17.9446, clause (1), item 
  5.14  (iv); (10); or (11), which apply to contracts entered into on or 
  5.15  after the day following final enactment.