Arkansas Administrative Code › Agency 209 - Arkansas Agriculture Department › Division 02 - State Plant Board › Rule 209.02.19-012 - Catfish Processors Rules

Current through Register Vol. 49, No. 6, June, 2024
RULES ON CATFISH PROCESSORS IN ARKANSAS
(Promulgated and adopted under authority of Act 365 of
				1987 The Arkansas Catfish Processor Fair Practices Law)
SECTION I.
GENERAL PURPOSE
			 AND INTENT
The Arkansas Catfish Processor Fair Practices Act charges the
				State Plant Board with the responsibility of registering, auditing and
				regulating those catfish processors who receive or purchase catfish from
				producers. The principal objective and intent of this law is to provide any
				catfish producer who delivers catfish to a processor in Arkansas some measure
				of protection from unlawful or fraudulent processing and payment
				practices.
SECTION II.
ORGANIZATION AND DESIGNATION OF DUTIES
The Arkansas Catfish Processor Fair Practices Act will be
				administered as a Section of the Division of Marketing of the State Plant
				Board. The Director of Marketing and the Manager of the Grain Warehouse Section
				are designated the authority and duties assigned by the Commissioner in Act 365
				of 1987, and will be carried out under general supervision from the
				Commissioner in Act 365 of 1987 and Act 434 of 1967 and amended (The
				Administrative Procedures Act).
SECTION
			 III.
REGISTRATION
All "persons" as defined by law engaged in the handling,
				storing, preparing, manufacturing, packaging, or holding of catfish products
				shall register with the State Plant Board. The registration shall be for a
				period of one (1) year which runs from July 1 through June 30 of each year.
				Registration shall be on forms provided by the State Plant Board.
Each registration form shall be accompanied by a financial
				statement and a certificate of fact. The financial statement shall be a signed
				report of a Certified Public Accountant or a Registered Public Accountant which
				must be a representation of an examined audit report, review report, or a
				compilation report.
SECTION
			 IV.
SECURITY
Catfish processors who elect to pay for the fish they purchase
				as specified in Section 5(l)(b) of Act 365 of 1987 (taking up to 14 days to
				pay) shall provide security in the form of cash, bond, certificate of deposit,
				letter of credit, or such other evidences of security as authorized by the
				Board. Processors who elect to pay for fish the day of delivery (Section 5(1)
				(a)), or as specified in a written contract or agreement (Section 5(1) (c)) are
				exempt from this section.
The issuing institution of a bond, certificate of deposit,
				letter of credit, or any other securities shall not cancel the security unless
				a thirty (30) day written notice of cancellation is sent by certified mail to
				the Director of the State Plant Board, P. 0. Box 1069, Little Rock, AR 72203.
				Cancellation notice must be received at least thirty (30) days prior to the
				cancellation or termination date of said security.
All renewal or replacement bonds, certificates of deposit,
				letters of credit, or other securities specified by the Board shall be in the
				State Plant Board office five (5) business days prior to the effective
				cancellation or termination date of said security. If renewal or replacement
				documents are not received within the five (5) days time frame, the original
				security shall be drawn on by the State Plant Board staff. All monies received
				from the drawing shall be held by the State Plant Board for the purpose of
				paying producers and/or secured creditors for non-payment by the
				processor.
The minimum security shall be set at $20,000 for any person(s)
				(as defined by Law) deemed as being a processor. All bonds or combinations of
				securities shall be set at a rate of .200 per pound of catfish purchased by the
				processor. Increments of security shall be set in the following amounts:
LBS. OF CATFISH PURCHASED PER MONTH
AMOUNT OF SECURITY
0 - 99.00
$20,000
100.000 - 199.0
$40,000
200.000 - 299.0
$60,000
300.000 - 399.0
$80,000
400.000 - 499.0
$100,000
500.000 - 599.0
$120,000
600,000 - 699.0
$140,000
700,000 - 799.0
$160,000
800,000 - 899.0
$180,000
900,000 - 999.0
$200,000
Amounts Over - 1.000
Maximum $250,000
Security documents shall be included with registration
				forms.
SECTION V.
CONTRACTS OR AGREEMENTS BETWEEN PRODUCERS AND BUYERS
Catfish processors who elect to pay for the fish they purchase
				as specified in Section 5(l)(c) of Act 365 of 1987 (written contracts and
				agreements) shall have their contracts/agreements prepared in advance and
				approved by the State Plant Board. Each contract/agreement shall contain a
				statement informing the producer or seller that he is relinquishing all rights
				and title to the buyer or processor upon delivery of catfish. Each
				contract/agreement shall include a lien holder statement. The Director may
				require any additional information deemed necessary to protect the interest of
				the producer or seller or secured creditor in these transactions. All
				contracts/agreements shall be pre-numbered with no duplication of
				numbers.
SECTION VI.
SCALES FOR WEIGHING CATFISH
As a matter of fair practice, all scales used for the weighing
				of catfish by a processor shall be calibrated, tested, and officially approved
				by the Arkansas Bureau of Standards. It shall be the duty of the catfish
				processor to contact the Arkansas Bureau of Standards annually for the testing
				and approval of their scales used for weighing catfish. If a processor's scale
				is not approved, the processor shall not engage in the business of buying
				catfish from producers.
SECTION
			 VII.
WEIGH TICKETS
Weigh tickets used for the weighing of catfish shall be
				pre-numbered and in the form prescribed by the State Plant Board. All records
				shall be maintained on a daily basis by the catfish processor which the State
				Plant Board deems necessary for auditing purposes. The State Plant Board shall
				require change in weigh tickets and other record keeping forms anytime deemed
				necessary while auditing and regulating catfish processors.
SECTION VIII.
AUDITING
Auditors of the State Plant Board's Public Grain Warehouse
				Section shall audit the records of Arkansas catfish processors periodically to
				determine:
1. Volume of catfish
			 purchased.
2. Payment of producers
			 as specified, contracted, or agreed to.
3. Solvency of the processor (Section 6 of
			 Act 365 of 1987).
All registrants shall maintain on a daily basis bookkeeping
				records required by the State Plant Board as deemed necessary for auditing
				purposes.