PRIOR PRINTER'S NOS. 2763, 2958 PRINTER'S NO. 3105
No. 2035 Session of 1984
INTRODUCED BY BROUJOS, NOYE, COLE, CORDISCO, CAPPABIANCA,
BATTISTO, SCHEETZ, WASS, G. M. SNYDER, GODSHALL, SHOWERS,
BALDWIN, DeVERTER, BELFANTI, RUDY, COY, GALLAGHER, LLOYD,
PRESTON, DAWIDA, DUFFY, McCALL, A. C. FOSTER, JR., MORRIS,
FARGO, RUDY AND GREENWOOD, MARCH 27, 1984
AS AMENDED ON THIRD CONSIDERATION, HOUSE OF REPRESENTATIVES,
JUNE 5, 1984
AN ACT
1 Providing for the provisions of poultry and egg contracts; AND <--
2 IMPOSING CIVIL PENALTIES.
3 The General Assembly of the Commonwealth of Pennsylvania
4 hereby enacts as follows:
5 Section 1. Findings and purpose.
6 The General Assembly hereby finds:
7 (1) That the poultry and egg industries in Pennsylvania
8 are vital to the health and welfare of all Pennsylvanians.
9 (2) That all segments of these industries, including
10 farmers, brokers, processors and retailers, need to be
11 financially secure in order for the industry to benefit the
12 citizens of this Commonwealth.
13 (3) That, at present, poultry and egg farmers often do
14 business without having any guarantee of payment.
15 (4) That if poultry and egg farmers are not financially
16 secure, these industries would collapse, thereby threatening
1 the jobs, health and welfare of thousands of Pennsylvanians.
2 Section 2. Definitions.
3 The following words and phrases when used in this act shall
4 have the meanings given to them in this section unless the
5 context clearly indicates otherwise:
6 "Grower." A person who provides physical facilities for
7 housing and labor for raising poultry, whether or not he
8 provides additional services incidental to the raising of
9 poultry.
10 "Merchant." A person who buys poultry in wholesale
11 quantities within this Commonwealth, including, but not limited
12 to, purchases on commission, purchases by a dealer or purchases
13 by a broker.
14 "Person." Any individual, partnership, sole proprietorship,
15 corporation or entity.
16 "Poultry." All types of chickens, whether raised to be sold
17 as layers or for processing, chicken eggs, ducks, geese, turkeys
18 and all game birds raised for processing.
19 "Poultry contract." Any agreement, either oral or written,
20 between a grower and a merchant relating to the raising of
21 poultry by the grower.
22 Section 3. Time for payment.
23 Notwithstanding the provisions of a poultry contract to the <--
24 contrary UNLESS OTHERWISE AGREED TO BY THE PARTIES INVOLVED, all <--
25 sums due to a grower by a merchant under a poultry contract
26 shall be paid to the grower within 14 days of the date on which
27 the grower delivers the poultry to the merchant.
28 Section 4. Interest on late payments.
29 Beginning on the 15th day after the date of delivery, the
30 merchant shall be liable to the grower for interest on the
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1 unpaid balance. Unless otherwise agreed to by the parties
2 involved, the interest is to be simple interest at the rate
3 published by the Secretary of Revenue pursuant to section 806 of
4 the act of April 9, 1929 (P.L.343, No.176), known as The Fiscal
5 Code.
6 Section 5. Mortgages or other security given by growers to
7 merchants.
8 Unless otherwise agreed to by the parties involved, a
9 mortgage or other security given by a grower, as mortgagor or
10 obligor, to a merchant or his assignee or designee, as mortgagee
11 or obligee, shall be satisfied by the merchant upon either of
12 the following conditions: (i) the delivery of the grown flock of
13 birds to the merchant by the grower; or (ii) the making of a
14 declaration OF DEFAULT by a grower under section 6. Such a <--
15 mortgage or other security shall not be deemed to be a
16 continuing obligation, but shall cease and determine when either
17 of the conditions set forth in this section are met.
18 Section 6. Failure to pay grower.
19 In the event that a grower is not paid by a merchant within
20 the time specified in section 3, the grower may, in addition to
21 other remedies provided in law, in equity or in other sections
22 of this act, declare THE MERCHANT TO BE IN DEFAULT UNDER any <--
23 contract entered into with the merchant to be void. Upon notice <--
24 to the merchant of such a declaration and of the date and place
25 of the proposed sale, the grower may take possession of SHALL <--
26 HAVE A LIEN UPON any property of the merchant, including
27 poultry, then in the grower's possession, WHICH LIEN SHALL TAKE <--
28 PRIORITY OVER ANY PREVIOUSLY PERFECTED SECURITY INTEREST IN THE
29 PROPERTY. This property shall be sold, for a fair consideration, <--
30 by the grower within 90 days of the date of the declaration. If
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1 the proceeds of the sale exceed the sum of (i) the indebtedness
2 owed by the merchant to the grower, (ii) the cost of the grower
3 of raising the poultry, if any, that was in his possession and
4 (iii) the cost of selling the property, the grower shall refund
5 the excess to the merchant within ten days of the date of the
6 sale. AND THE PROCEEDS OF SALE SHALL BE APPLIED IN THE MANNER <--
7 PROVIDED IN 13 PA.C.S. § 9504 (RELATING TO RIGHT OF SECURED
8 PARTY TO DISPOSE OF COLLATERAL AFTER DEFAULT; EFFECT OF
9 DISPOSITION). A BUYER OF THE PROPERTY SHALL, NOTWITHSTANDING ANY
10 OTHER PROVISION OF LAW TO THE CONTRARY, TAKE THE PROPERTY FREE
11 OF ANY SECURITY INTEREST. Notice under this section shall be
12 given by personal service or by certified mail to the merchant
13 at his last known address.
14 Section 7. Provisions of act may not be waived.
15 The provisions of this act are to ensure, for all of the
16 citizens of this Commonwealth, an adequate supply of poultry
17 products. The provisions of this act may not be waived, altered,
18 amended or otherwise avoided by contract. An attempted waiver,
19 alteration or amendment shall be unenforceable in the courts of
20 this Commonwealth and is hereby deemed to be void from its
21 inception. This section shall have no effect on the terms of a
22 contract that are not inconsistent with the provisions of this
23 act.
24 Section 8. Rights of unpaid grower.
25 (a) Civil action authorized.--A grower who is not paid
26 within 14 days or who is not paid interest on a late payment, as
27 provided in sections 3 and 4, may bring a civil action against
28 the merchant in a county where the grower resides or does
29 business or in any other county provided by law or rule of
30 court.
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1 (b) Court may award costs.--In an action instituted under
2 this section, the court, in issuing a final order, may award
3 costs of litigation, including reasonable attorney and expert
4 witness fees, to the grower, whenever the court determines that
5 such an award is appropriate.
6 Section 9. Civil penalties.
7 A person who is found in default under section 6 more than
8 twice within a 12-month period shall be subject to a civil
9 penalty equal to twice the amount of each late payment. The
10 secretary SECRETARY OF AGRICULTURE shall have the authority to <--
11 bring a civil action to impose this penalty.
12 SECTION 10. APPLICATION. <--
13 FOR A PERIOD OF TWO YEARS FROM THE EFFECTIVE DATE OF THIS
14 ACT, THIS ACT SHALL NOT APPLY TO POULTRY CONTRACTS WHICH ARE IN
15 EFFECT PRIOR TO THE EFFECTIVE DATE OF THIS ACT.
16 Section 10 11. Effective date. <--
17 This act shall take effect in 90 days.
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