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2025 Regular Session Introduced by Charles Clements and 7 co-sponsors

Senate Bill 581 protects Arkansas poultry growers by enforcing transparency from integrators, preventing deceptive practices, and allowing civil actions for damages.

Chapter 86, Acts, Regular Session, 2025

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Purpose and Intent

Senate Bill 581 aims to enhance transparency and protect poultry growers in Arkansas by regulating the practices of poultry integrators. The bill establishes the Poultry Integrators Deceptive Trade Practices and Taxpayer Protection Act, which seeks to prevent deceptive practices and ensure that poultry integrators fulfill their contractual obligations to growers.

Key Provisions

The bill introduces several important provisions under a new subchapter in the Arkansas Code:

Definitions and Transparency Requirements

Poultry Integrator Definition: A poultry integrator is defined as a company that owns poultry throughout the growing process and provides necessary supplies to growers under contract.

Disclosure Obligations: Poultry integrators are prohibited from:

Failing to disclose material facts about their business health during contract negotiations.
Requiring growers to make costly improvements without assurance of fulfilling contract obligations.
Neglecting the care of poultry under contract if they are unable to remain in business.
Engaging in any deceptive or unconscionable trade practices.

Liability and Enforcement

Penalties for Violations: Owners or operators of poultry integrators who violate these provisions may be held liable and could face criminal charges, classified as a Class B felony upon conviction.

Enforcement Actions: The bill empowers prosecutors and the Attorney General to initiate enforcement actions against violators.

Civil Remedies for Growers: Affected growers have the right to file civil actions for damages, which may include compensation for costs, fees, and reasonable attorney's fees.

Affected Parties

The primary stakeholders impacted by this legislation include:
- Poultry Growers: The bill aims to protect their interests and ensure fair treatment in contractual agreements with poultry integrators.
- Poultry Integrators: These companies will face new regulations and potential penalties for non-compliance, which may affect their operational practices.

Procedural Aspects

Introduced: March 31, 2025

Status: The bill was reported from the Economic Development and Tourism (EDT) committee with a recommendation for passage on Second Reading, as amended (SD 1), and referred to the Ways and Means (WAM) committee.

Legislative Timeline:

March 31, 2025: Filed and read for the first time.
February 10, 2025: Passed Second Reading and referred to WAM.
May 5, 2025: Died in Senate Committee at Sine Die adjournment.

Related Legislation

House Bill 451: A companion bill that addresses similar issues regarding poultry integrators.

This summary provides an overview of SB 581, highlighting its purpose, key provisions, affected parties, and procedural details to inform stakeholders and the public about its implications for the poultry industry in Arkansas.

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