Shown verbatim: the complete text as captured from the official PDF posted by the Arkansas General Assembly, fetched 2026-07-23. Page and line markers are part of the official record; nothing is edited or removed. The official bill page.
Stricken language would be deleted from and underlined language would be added to present law.
1 State of Arkansas A Bill
2 95th General Assembly
3 Regular Session, 2025 SENATE BILL 407
4
5 By: Senator Gilmore
6 By: Representative Beaty Jr.
7
8 For An Act To Be Entitled
9 AN ACT TO REPEAL THE ARKANSAS CATFISH PROCESSOR FAIR
10 PRACTICES ACT OF 1987; AND FOR OTHER PURPOSES.
11
12
13 Subtitle
14 TO REPEAL THE ARKANSAS CATFISH PROCESSOR
15 FAIR PRACTICES ACT OF 1987.
16
17 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF ARKANSAS:
18
19 SECTION 1. Arkansas Code Title 2, Chapter 6, is repealed.
20 2-6-101. Title.
21 This chapter shall be known and may be cited as the "Arkansas Catfish
22 Processor Fair Practices Act of 1987".
23
24 2-6-102. Purpose.
25 The General Assembly finds that a burden on and an obstruction to
26 intrastate commerce in the catfish farming industry is caused when payment is
27 not made for the catfish and that these arrangements are contrary to the
28 public interest. This chapter is intended to remedy this burden on and
29 obstruction to intrastate commerce in catfish and to protect the public
30 interest.
31
32 2-6-103. Definitions.
33 As used in this chapter:
34 (1) [Repealed.]
35 (2) "Capable of use as human food" means and applies to any
36 catfish or part or product of any catfish unless it is denatured or otherwise
*CRH136* 03/10/2025 7:13:51 AM CRH136
SB407
1 identified as required by rules prescribed by the Department of Agriculture
2 to deter its use as human food, or unless it is naturally inedible by humans;
3 (3) "Cash sale" means a sale in which the seller does not
4 expressly extend credit to the buyer;
5 (4) "Catfish" means any species of the scientific order
6 Ostariophysida, family Ictaluridae;
7 (5) "Class A registrant" means any catfish processor who
8 purchases at least fifty thousand dollars ($50,000) worth of catfish annually
9 from catfish producers;
10 (6) "Direct retail sale" means the sale of catfish products
11 directly to the consumer;
12 (7) [Repealed.]
13 (8) "Owner" means a person or a producer that owns an equity
14 interest, directly or indirectly, in a catfish processor;
15 (9) "Person" includes any individual, partnership, corporation,
16 and association, or other legal entity;
17 (10) "Processor" means any person engaged in handling, storing,
18 preparing, manufacturing, packing, or holding catfish products;
19 (11) "Producer" means any person engaged in the business of
20 producing catfish by any method;
21 (12) "Product" means any catfish product capable of use as human
22 food which is made wholly or in part from any catfish or portion thereof; and
23 (13) "Secured party" means a lender who has a perfected security
24 interest under the Uniform Commercial Code, � 4-1-101 et seq., in the catfish
25 being sold.
26
27 2-6-104. Administration.
28 (a) This chapter shall be administered by the Department of
29 Agriculture.
30 (b) The department is authorized to promulgate such rules as may be
31 necessary for the efficient enforcement of this chapter, including the
32 establishment of reasonable fees for registering with the department.
33 (c) If necessary to prevent the spread of disease, the State
34 Veterinarian in consultation with the Secretary of the Department of
35 Agriculture may issue orders under this subchapter for the:
36 (1) Isolation or quarantine of infected fish;
2 03/10/2025 7:13:51 AM CRH136
SB407
1 (2) Disinfection of premises;
2 (3) Destruction of incurably-diseased fish; and
3 (4) Disposal of fish.
4
5 2-6-105. Registration and suspension -- Exception.
6 (a)(1) Except as provided in subsection (e) of this section, every
7 catfish processor in the state shall register with the Department of
8 Agriculture.
9 (2) Applications for registration as a catfish processor under
10 this chapter shall be made on forms prescribed by the department.
11 (3) Every application is to be accompanied by an application fee
12 of one hundred fifty dollars ($150), a certified financial statement in a
13 form prescribed by the department, and any further information the department
14 may by rule require.
15 (b) The department shall promulgate such rules as necessary to secure
16 the performance of catfish purchasing obligations.
17 (c) Whenever, after due notice and hearing, the department finds any
18 registrant is insolvent or has violated any provisions of this chapter, it
19 may issue an order suspending the registrant for a reasonable specified
20 period. The order of suspension shall take effect within five (5) days unless
21 suspended, modified, or set aside by the department or a court of competent
22 jurisdiction.
23 (d) If the department finds any processor is insolvent, is issuing
24 invalid or insufficient checks, or is causing a breach of contract with the
25 producer by failure to pay the producer in accordance with the contract, the
26 department shall issue an order requiring the processor to cease and desist
27 from purchasing catfish except under such conditions as the department may
28 prescribe to effectuate the purposes of this chapter.
29 (e) Those processors whose average annual purchases from catfish
30 producers do not exceed one hundred thousand dollars ($100,000) shall be
31 exempt from the provisions of this section.
32
33 2-6-106. Unlawful practices -- Penalties.
34 (a)(1) With respect to catfish or catfish products, it shall be
35 unlawful for any processor to engage in or use any unfair, unjustly
36 discriminatory, or deceptive practice.
3 03/10/2025 7:13:51 AM CRH136
SB407
1 (2) If any person subject to this chapter violates any of the
2 provisions of this chapter or of any order of the Department of Agriculture
3 under this chapter relating to the purchase, sale, or handling of catfish, he
4 or she shall be liable to the person injured for the full amount of damages
5 sustained in consequence of the violation.
6 (b) This liability may be enforced either by complaint to the
7 department or by suit in any circuit court of competent jurisdiction. This
8 section shall not in any way abridge or alter the remedies now existing at
9 common law or by statute, but the provisions of this section are in addition
10 to those remedies.
11 (c) The department is authorized to apply for and the court is
12 authorized to grant a temporary or permanent injunction restraining any
13 person from violating or continuing to violate any of the provisions of this
14 chapter or any rule promulgated under this chapter, notwithstanding the
15 existence of other remedies at law. The injunction shall be issued without
16 bond.
17 (d) The department may assess civil penalties against any Class A
18 registrant as follows:
19 (1) Not more than fifty dollars ($50.00) for each day payment to
20 the producer is late under � 2-6-107(a)(2);
21 (2) Not more than one hundred dollars ($100) for each day
22 payment to the producer is late under the contract between the registrant and
23 the producer; and
24 (3) In instances where the registrant has paid a producer with
25 an invalid or insufficient check, not more than two hundred dollars ($200)
26 for each day the check is invalid or insufficiently funded.
27 (e) Civil penalties collected under this chapter shall be deposited
28 into the Livestock and Poultry Special Revenue Fund.
29
30 2-6-107. Purchase methods -- Delays.
31 (a) Each processor shall use one (1) of the following methods to
32 purchase catfish products:
33 (1) The processor may deliver to the producer or his or her
34 authorized representative and any secured parties the full amount of the
35 purchase price on the same day the catfish product is purchased and
36 possession is transferred;
4 03/10/2025 7:13:51 AM CRH136
SB407
1 (2)(A) Before the close of the fourteenth calendar day following
2 the purchase of the catfish products and transfer or possession of the
3 catfish products, the processor may deliver to the producer or his or her
4 authorized representative and any secured parties the full amount of the
5 purchase price.
6 (B) If the producer or his or her authorized
7 representative or secured parties are not present to receive payment at the
8 point of transfer or possession, as provided in subdivision (a)(1) of this
9 section, the processor shall wire transfer funds or place a check in the
10 United States mail for the full amount of the purchase price, properly
11 addressed to the producer and any secured parties, within the time limits
12 specified in this subsection. This action shall be deemed in compliance with
13 the requirement for prompt payment under this subdivision (a)(2); or
14 (3) The parties to the purchase and sale of catfish products may
15 expressly agree in writing before the purchase or sale to effect payment in a
16 manner other than that required in subdivision (a)(1) or (2) of this section
17 if the manner of payment does not interfere with the rights of secured
18 parties. Any agreement shall be disclosed in the records of any producer
19 selling the catfish and in the processors' records and on the accounts or
20 other documents issued by the processors relating to the transaction.
21 (b)(1) Regardless of the method elected under subdivision (a)(2) of
22 this section to purchase catfish products, a Class A registrant, before the
23 transaction, shall be required to:
24 (A) Be bonded in the amount of two hundred fifty thousand
25 dollars ($250,000) or in an amount which may be determined by the Department
26 of Agriculture;
27 (B) Post a security bond in the amount of two hundred
28 fifty thousand dollars ($250,000) or in an amount which may be determined by
29 the department; or
30 (C) Provide cash security, letters of credit, and such
31 other evidences of security as shall be authorized by the department.
32 (2) However, if a Class A registrant purchases catfish solely
33 and exclusively from producers that are also the owners of the processor,
34 then the Class A registrant is exempt from the bonding or security
35 requirements imposed under subdivision (b)(1) of this section.
36 (c) Any delay or attempt to delay, by a processor purchasing catfish
5 03/10/2025 7:13:51 AM CRH136
SB407
1 products, the collection of funds as provided in this chapter or otherwise
2 for the purpose of or resulting in extending the normal period of payment for
3 the catfish shall be considered an unfair practice in violation of this
4 chapter.
5 (d)(1) At the time catfish are delivered to a processor and unloaded
6 from a live-haul truck, the processor shall weigh the catfish using a device
7 that is of a type suitable for the weighing of catfish.
8 (2) Deductions for trash fish, turtles, and other foreign
9 material except water shall be determined by a separate weighing of the same.
10 (3) There shall be no water tare nor deductions made for water
11 in weighing baskets.
12 (4) Processors are responsible for draining water from weighing
13 baskets.
14 (e)(1) Scales used to weigh catfish and foreign material under this
15 section must be capable of electronically printing a ticket that provides an
16 exact duplicate of the weight indicated.
17 (2) A copy of the ticket shall be provided to the producer at
18 the time of weighing.
19 (3) The ticket shall also contain the following:
20 (A) The name and address of the processor;
21 (B) The name of the owner of the catfish being weighed;
22 (C) The date the catfish are weighed;
23 (D) The signature of the individual who weighs the
24 catfish; and
25 (E) Any additional information as the department deems
26 necessary for the lawful and accurate recording of the weight of the catfish.
27 (f) Processors who process less than seventeen thousand five hundred
28 pounds (17,500 lbs.) of catfish per week are not required to use the
29 electronic printing scales otherwise required by this section.
30 (g) The department shall be responsible for the enforcement of this
31 section, and its agents shall perform periodic inspections of processing
32 plants to ensure that the provisions of this section are being carried out
33 and that all deductions for foreign material are legitimate and fair to the
34 producer.
35
36 2-6-109. Receivership -- Petition -- Assets.
6 03/10/2025 7:13:51 AM CRH136
SB407
1 (a) The Secretary of the Department of Agriculture or his or her
2 designee in his or her discretion may, following a suspension of a Class A
3 registrant as provided in this chapter, file a verified petition in the
4 proper court requesting that the secretary be appointed as a receiver to take
5 custody of catfish in the registrant's facility and to provide for the
6 disposition of those assets in the manner provided in this chapter and under
7 the supervision of the court.
8 (b) The petition shall be filed in the county in which the registrant
9 is located. The proper court shall appoint the secretary as receiver.
10 (c) Upon the filing of the petition, the court shall issue ex parte
11 such temporary orders as may be necessary to preserve or protect the assets
12 in receivership, or the value thereof, and the rights of producers, until a
13 plan of disposition is approved.
14
15 2-6-110. Receivership -- Plan for disposition of catfish.
16 A petition filed by the Secretary of the Department of Agriculture
17 under � 2-6-109 shall be accompanied by the secretary's plan for disposition
18 of the processed catfish. The plan may provide for the pro rata delivery of
19 part or all of the processed catfish to producers holding weigh tickets, or
20 may provide for the sale under the supervision of the secretary of part or
21 all of the processed catfish for the benefit of those producers, or may
22 provide for any combination thereof, as the secretary in his or her
23 discretion determines to be necessary to minimize losses.
24
25 2-6-111. Receivership -- Hearings on plan -- Notice -- Service.
26 (a) When a petition is filed by the Secretary of the Department of
27 Agriculture or his or her designee under � 2-6-109 the clerk of court shall
28 set a date for hearing on the secretary's proposed plan of disposition at a
29 time not less than ten (10) nor more than fifteen (15) calendar days after
30 the date the petition is filed.
31 (b) Copies of the petition, the notice of hearing, and the secretary's
32 plan of disposition shall be served upon the Class A registrant and upon the
33 surety company issuing the Class A registrant's bond in the manner required
34 for service of an original notice.
35 (c) A delay in effecting service upon the Class A registrant or surety
36 shall not be cause for denying the appointment of a receiver and shall not be
7 03/10/2025 7:13:51 AM CRH136
SB407
1 grounds for invalidating any action or proceeding in connection therewith.
2
3 2-6-112. Receivership -- Notification to weigh ticket holders.
4 (a) The Secretary of the Department of Agriculture shall cause a copy
5 of each of the documents served upon the Class A registrant under � 2-6-111
6 to be mailed by ordinary mail to every person holding a weigh ticket issued
7 by the Class A registrant, as determined by the records of the Class A
8 registrant or the records of the secretary.
9 (b) The failure of any person referred to in this section to receive
10 the required notification shall not invalidate the proceedings on the
11 petition for the appointment of a receiver or any portion thereof.
12 (c) Persons referred to in this section are not parties to the action
13 unless admitted by the court upon application therefor.
14
15 2-6-113. Receivership -- Publication of notification of receiver's
16 appointment.
17 When appointed as a receiver under this chapter the Secretary of the
18 Department of Agriculture shall cause notification of the appointment to be
19 published once each week for two (2) consecutive weeks in a newspaper of
20 general circulation in each of the counties in which the Class A registrant
21 maintains a business location, and in a newspaper of general circulation in
22 this state.
23
24 2-6-114. Receivership -- Designee -- Duties of secretary.
25 The Secretary of the Department of Agriculture may designate an
26 employee to appear on behalf of the secretary in any proceedings before the
27 court with respect to the receivership, and to exercise the functions of the
28 secretary as receiver, except that the secretary shall determine whether or
29 not to petition for the appointment as receiver, shall approve the proposed
30 plan for disposition of processed catfish, shall approve the proposed plan
31 for distribution of any cash proceeds, and shall approve the proposed final
32 report.
33
34 2-6-115. Receivership -- Applicability of administrative procedures.
35 The actions of the Secretary of the Department of Agriculture in
36 connection with petitioning for appointment as a receiver, and all actions
8 03/10/2025 7:13:51 AM CRH136
SB407
1 under such appointment, shall not be subject to the provisions of the
2 Arkansas Administrative Procedure Act, � 25-15-201 et seq.
3
4 2-6-116. Receivership -- Sureties.
5 When the Secretary of the Department of Agriculture or his or her
6 designee is appointed as receiver under this chapter, the surety on the bond
7 of the Class A registrant shall be joined as a party defendant by the
8 secretary. If required by the court, the surety shall pay the bond proceeds,
9 or so much thereof as the court finds necessary, into the court, and when so
10 paid the surety shall be absolutely discharged from any further liability
11 under the bond to the extent of the payment.
12
13 2-6-117. Receivership -- Notice of claims filing deadline.
14 (a) When appointed as receiver under this chapter, the Secretary of
15 the Department of Agriculture or his or her designee is authorized to give
16 notice in the manner specified by the court to persons holding weigh tickets
17 issued by the Class A registrant to file their claims within sixty (60)
18 calendar days after the date of appointment.
19 (b) Failure to timely file a claim shall defeat the claim with respect
20 to the surety bond and any catfish, or proceeds from the sale of catfish,
21 except to the extent of any excess remaining after all timely claims are paid
22 in full.
23
24 2-6-118. Receivership -- Sale of processed catfish -- Merchandiser.
25 (a) When the court approves the sale of processed catfish the
26 Secretary of the Department of Agriculture shall employ a merchandiser to
27 effect the sale of those commodities.
28 (b) A person employed as a merchandiser must meet the following
29 requirements:
30 (1) The person shall be experienced or knowledgeable in the
31 operation of processors registered under this chapter, and if the person has
32 ever held a registration certificate issued under this chapter, the person
33 shall never have had the registration suspended;
34 (2) The person shall be experienced or knowledgeable in the
35 marketing of aquacultural products; and
36 (3) The person shall not be the holder of a weigh ticket issued
9 03/10/2025 7:13:51 AM CRH136
SB407
1 by the Class A registrant and shall not have a claim against the Class A
2 registrant, whether as a secured or unsecured creditor, and otherwise shall
3 not have any pecuniary interest in the Class A registrant or the Class A
4 registrant's business.
5 (c) The merchandiser shall be entitled to reasonable compensation as
6 determined by the secretary.
7 (d) A sale of processed catfish shall be made in a commercially
8 reasonable manner and under the supervision of the secretary.
9 (e) The secretary shall have authority to sell the processed catfish,
10 and provisions of the Uniform Commercial Code, � 4-1-101 et seq., to the
11 contrary notwithstanding, any processed catfish so sold shall be free of all
12 liens and other encumbrances.
13
14 2-6-119. Receivership -- Distribution to producers.
15 The plan of disposition, as approved by the court, shall provide for
16 the distribution of the processed catfish, or the proceeds from the sale of
17 processed catfish or the proceeds from any surety bond, or any combination
18 thereof, less expenses incurred by the Secretary of the Department of
19 Agriculture in connection with the receivership, to producers on a pro rata
20 basis as their interests are determined. Distribution shall be without regard
21 to any setoff, counterclaim, or charge.
22
23 2-6-120. Receivership -- Continued operation of business.
24 The Secretary of the Department of Agriculture or his or her designee
25 may, with the approval of the court, continue the operation of all or any
26 part of the business of the Class A registrant on a temporary basis and take
27 any other course of action or procedure which will serve the interests of the
28 producers.
29
30 2-6-121. Receivership -- Reimbursement.
31 The Secretary of the Department of Agriculture shall be entitled to
32 reimbursement out of processed catfish or proceeds held in receivership for
33 all expenses incurred as court costs or in handling and disposing of
34 processed catfish, and for all other costs directly attributable to the
35 receivership. The right of reimbursement of the secretary shall be prior to
36 any claims against the processed catfish or proceeds of sale thereof and
10 03/10/2025 7:13:51 AM CRH136
SB407
1 shall constitute a claim against the surety bond of the Class A registrant.
2
3 2-6-122. Receivership -- Proceeds -- Termination.
4 In the event the approved plan of disposition requires the sale of
5 processed catfish, or the distribution of proceeds from the surety bond, or
6 both, the Secretary of the Department of Agriculture or his or her designee
7 shall submit to the court a proposed plan of distribution of those proceeds.
8 Upon such notice and hearing as may be required by the court, the court shall
9 accept or modify the proposed plan. When the plan is approved by the court
10 and executed by the secretary or his or her designee, the secretary or his or
11 her designee shall be discharged and the receivership terminated.
12
13 2-6-123. Receivership -- Final report.
14 At the termination of the receivership, the Secretary of the Department
15 of Agriculture shall file a final report containing the details of his or her
16 actions, together with such additional information as the court may require.
17
18 SECTION 2. Arkansas Code � 19-6-301(34)(J), concerning the enumeration
19 of special revenues as Arkansas Livestock and Poultry Commission fees and
20 revenues, is repealed.
21 (J) Catfish processor civil penalties collected under the
22 Arkansas Catfish Processor Fair Practices Act of 1987, � 2-6-101 et seq.;
23
24 SECTION 3. Arkansas Code � 19-6-480(a), concerning the Livestock and
25 Poultry Special Revenue Fund, is amended to read as follows:
26 (a) The Livestock and Poultry Special Revenue Fund shall consist of
27 those special revenues as specified in � 19-6-301(33) and (34) and �� 2-5-
28 204, and 2-5-206, and 2-6-106 that are not required for support of the
29 Arkansas Livestock and Poultry Commission Poultry and Egg Grading Program,
30 there to be used for those purposes as set out by law.
31
32
33
34
35
36
11 03/10/2025 7:13:51 AM CRH136Every fact on this page links to its source, starting with the official bill record.