§ 54-2604.01. Swine production contract; contents; cancellation; procedure; violations; Attorney General; duties; fine; Department of Agriculture; rules and regulations.
AI-assisted research summary: This section sets contract rules for swine production contracts, including cancellation rights, disclosure duties, limits on confidentiality clauses, a pre-contract arbitration opt-out, court venue, enforcement by the Attorney General, and possible fines.
(1) For purposes of this section: (a) Swine production contract means the agreement between a packer and a swine production contract grower which establishes a contract swine operation; and (b) Swine production contract grower means the person who enters into a swine production contract with a packer to establish a contract swine operation. (2) A swine production contract grower may cancel a swine production contract by mailing a cancellation notice to the packer not later than the later of: (a) Three business days after the date on which the swine production contract is executed; or (b) Any cancellation date specified in the swine production contract. (3) A swine production contract shall clearly disclose: (a) The right of the swine production contract grower to cancel the swine production contract; (b) The method by which the swine production contract grower may cancel the swine production contract; and (c) The deadline for canceling the swine production contract. (4) A swine production contract shall contain on the first page a statement identified as the Additional Capital Investments Disclosure Statement, which shall conspicuously state that additional large capital investments may be required of the swine production contract grower during the term of the swine production contract. This subsection shall apply to any swine production contract entered into, amended, altered, modified, renewed, or extended after July 21, 2016. (5) The forum for resolving any dispute among the parties to a swine production contract shall be a court of competent jurisdiction within the state in which the principal part of the performance takes place under the swine production contract. (6) Any swine production contract that contains a provision requiring the use of arbitration to resolve any controversy that may arise under the contract shall contain a provision that allows a swine production contract grower, prior to entering the contract, to decline to be bound by the arbitration provision. (7) Any swine production contract grower that declines a requirement of arbitration pursuant to subsection (6) of this section has the right to seek to resolve any controversy that may arise under the swine production contract using arbitration if, after the controversy arises, both parties consent in writing to use arbitration to settle the controversy. (8) Subsections (6) and (7) of this section shall apply to any swine production contract entered into, amended, altered, modified, renewed, or extended after July 21, 2016. (9) A swine production contract shall not contain any obligations of confidentiality, or any other provisions, that limit a swine production contract grower from sharing and reviewing the swine production contract with anyone, including, but not limited to, his or her business partners, employees, or agents, his or her financial and legal advisors, and his or her spouse and family members. (10) Whenever the Attorney General has reason to believe that a packer is violating this section, he or she shall commence an action in district court to enjoin the violation. The court, upon determination that such packer is in violation of this section, shall assess the packer a fine of not less than one thousand dollars for each day of violation. (11) The Department of Agriculture may adopt and promulgate such rules and regulations regarding swine production contracts as are needed to further protect swine production contract growers from unfair business practices and coercion. History: Laws 2016, LB176, § 4.