Georgia-2009-HB833-Introduced

To amend Chapter 8 of Title 13 of the Official Code of Georgia Annotated, relating to illegal and void contracts generally, so as to make legislative findings; to define certain terms; to provide that certain acts shall constitute unfair methods of competition and unfair or deceptive acts or practices; to provide for civil remedies; to provide for related matters; to repeal conflicting laws; and for other purposes.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:

Chapter 8 of Title 13 of the Official Code of Georgia Annotated, relating to illegal and void contracts generally, is amended by adding a new article to read as follows:

The General Assembly finds that the production of poultry and swine in the State of Georgia vitally affects the general economy of the state and the public interest and public welfare and that the advantages that integrators and processors over contract producers is so vast that the state, in the exercise of its police power, must regulate integrators and their representatives doing business in Georgia in order to prevent frauds, unfair business practices, unfair methods of competition, impositions, and other abuses upon its citizens.

As used in this chapter, the term:

(1) 'Contract producer' means a producer of poultry or swine who holds a legal interest in a contract operation and who produces poultry under a production contract at that contract operation.

(2) 'Integrator' means a person who owns poultry that is produced by a contract producer or who is engaged in the business of manufacturing goods from poultry or swine, including by slaughtering or processing poultry or swine.

(3) 'Production contract' means an agreement executed by an integrator or processor that provides for the production of poultry or swine or the provision of management services relating to the production of poultry or swine by a contract producer in this state.

No production contract shall be of less than 12 months nor longer than 36 months in duration.

The integrator shall hold the contract producer harmless for the balance on any loan or combination of loans in excess of $100,000.00 made by the integrator to the contract producer to make facility upgrades made necessary by the production contract if the integrator idles or ceases the operation of such contract producer.

The integrator shall hold the contract producer harmless for the death of any animals during the production process; provided; however, that in the event of the death of over 50 percent of the animals under production, the integrator shall hold the contract producer harmless for 50 percent of such loss.

In the event an integrator idles or ceases operations, it shall fully compensate the contract producer for economic loss caused by such idling or cessation of operations; provided, however, that the contract producer shall make reasonable efforts to ameliorate such economic losses.

(a) Any person who shall be injured in his or her business or property by reason of anything forbidden in this article may bring an action therefor in the appropriate superior court of this state and shall recover the actual damages sustained and the costs of such action, including any reasonable attorney's fee.

(b) When such action is one of common or general interest to many persons or when the parties are numerous and it is impracticable to bring them all before the court, one or more may bring a class action for the benefit of the whole, including actions for injunctive relief.

(c) In an action for money damages, if the jury finds that the defendant acted maliciously, the jury may award punitive damages as permitted by Georgia law.

Any contract or franchise agreement or part thereof or practice thereunder in violation of any provision of this article shall be deemed against public policy and shall be void and unenforceable."