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AR HB1214
Bill
Status
4/7/2015
Primary Sponsor
Jon Eubanks
Click for details
AI Summary
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Requires production contracts to include a clearly written disclosure statement signed by the grower that discloses material risks faced by growers entering the contract.
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Mandates production contracts contain notice that grower execution acknowledges understanding that additional large capital investments may be required during the contract term, including equipment purchases, improvements, and structure upgrades for poultry or livestock.
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Requires lenders or loan originators to provide boldface notice in commercial loan agreements that borrowers may need additional investments to comply with related production contracts and that lenders are not obligated to provide additional loans.
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Makes any production contract provision that violates these requirements void and unenforceable, without affecting other contract provisions that can be enforced separately.
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Declares an emergency effective upon Governor approval, citing agriculture's importance to Arkansas's economy and harm caused by unexpected business closures due to undisclosed investment requirements.
Legislative Description
To Require That Notice Be Given To Growers Concerning Additional Investments That May Be Required Under A Production Contract; And To Declare An Emergency.
Last Action
Notification that HB1214 is now Act 1169
4/7/2015