Louisiana Administrative Code › Title 7 - AGRICULTURE AND ANIMALS › Part XXXVI - Agricultural Ethanol Production › Chapter 1 - Agricultural Ethanol Productions › Section XXXVI-109 - Cooperative Endeavors and Agreements

Current through Register Vol. 50, No. 6, June 20, 2024
A. Written Contractual Agreements
1. All certified market participants who seek
				incentive payments shall enter into a written certified market participant
				contract with the board, which shall be executed by the commissioner.
2. The certified market participant contract
				shall contain the following provisions, to wit:
a. a statement of the purposes, goals and
				objectives of the agreement;
b. the
				name of both parties;
c. the time
				period covered by the contract indicating a beginning and ending
				date;
d. a provision for the
				termination of the certified market participant contract by the board after an
				adjudicatory hearing in which the certified market participant is held to be in
				violation of the Act or certified market participant contract;
e. a provision that if any provisions of the
				written agreement are unenforceable then all of the provisions of the written
				agreement shall be unenforceable and the cooperative endeavor agreement shall
				be null, void and of no effect;
f.
				certification and agreement by the applicant that the financial and other
				records required to be maintained by certified market participant contract
				shall be accurate and shall be maintained on a current basis and copies shall
				be provided to the commissioner on request;
g. a provision that requires the board and
				the certified market participant to comply with all of the provisions and
				requirements of the Act;
h. a
				provision that the certified market participant shall enter into producer
				contracts or agency contracts after the board has approved their certified
				market participant confidential business plan;
i. provisions that the certified market
				participant specify the type of origin of agriculture commodities or products
				to be used and provisions that specify limitations and conditions for changes
				in the type and origin of agriculture commodities or products depending on
				availability of supply and costs;
j. a provision that acknowledges the right of
				the board to deduct monthly from each certified market participant's incentive
				payments, in accordance with the Act, funds to pay the costs of administration
				of the board, their employees, attorneys and auditors;
k. a provision prohibiting the certified
				market participant from being a producer, grain dealer, warehouseman or
				blender, or owning a substantial interest in a blender doing business in
				Louisiana without prior approval of the board;
l. a provision that the agreement may be
				terminated if the certified market participant:
i. fails to notify the board in writing of
				the transfer of sale of an ownership interest in the designated certified
				market participant within 15 days of such transfer or sale;
ii. fails to provide the board within 30 days
				of the transfer or sale the necessary affidavit(s) relating to ownership and/or
				management as required by the application; and
iii. fails to receive from the board a letter
				of acknowledgment stating that such transfer or sale or ownership interest has
				been duly noted and the certified market participant is authorized to continue
				under the cooperative endeavor agreement;
m. a provision that the agreement may be
				terminated upon the insolvency, bankruptcy or assignment for benefit of
				creditors by the certified market participant; and
n. a provision recognizing that under the
				provisions of the Agricultural Ethanol Production Law, all incentive payments
				shall be made subject to the availability of funds derived from the taxes
				imposed on gasohol and agreeing that the cooperative endeavor created no
				obligation on the part of the state to make incentive payments from any other
				source.
3. Agency and
				producer contracts entered into by a certified market participant shall contain
				the following general provisions, to wit:
a.
				name and address of all parties;
b.
				the time period covered by the contract indicating a beginning and ending
				term;
c. date of
				contract;
d. terms of price,
				quantity, delivery, quality, charges, deductions, payments, all commissions,
				fees and other financial arrangements;
e. agreement to all inspection of records and
				premises and to maintain and provide on request by the commissioner all records
				and documents required by the Act, rules or any certified market participant,
				agency or producer contract;
f.
				agreement to comply with the Act and rules;
g. identity the producer of the agriculture
				commodity or product;
h.
				attestation and verification by the producer that the agricultural commodities
				or products delivered to the certified market participant, grain dealer or
				warehouseman were grown by the producer at a location specified in the
				contract;
i. a requirement that
				shipments to intermediaries shall not be commingled and a separate scale ticket
				shall be maintained and given the producer;
j. a requirement that settlement sheets be
				kept by intermediaries on forms specified by the commissioner;
k. a provision that producers agree to permit
				the commissioner to enter their property to examine the contracted crops and to
				audit the producer's financial and agricultural commodities or product records
				relating to the commodity or product sold to produce ethanol;
l. a provision specifying the method and time
				of payment as well as the certified market participant method of assurance for
				guaranteed performance on the contract;
m. a provision that assigns the certified
				market participant's incentive payments to pay the producer contracts, however,
				this provision may be deleted from the contracts if the certified market
				participant provides acceptable assurances and guarantees to the board that it
				can meet its contractual obligations;
n. a provision that authorizes the board to
				make payments directly to producers or intermediaries when there has been an
				assignment of incentive payments by the certified market participant;
				and
o. a provision that, based on
				the commissioner's audit or a written complaint filed by a party to an agency
				or producer contract, the board may hold an adjudicatory hearing to resolve any
				differences about quality of the agriculture commodity or product among the
				parties.
4. Special
				provisions may be in agency and producer contracts but shall require prior
				approval of the board.
5.
				Periodically, applicants or certified market participants shall discuss with
				the board their certified market participant confidential business plan which
				shall contain their proposed agency and producer contracts and other
				information and data indicating how they will seek to achieve the purposes and
				objectives of the cooperative endeavor agreement.
a. The certified market participant
				confidential business plan(s) shall be kept in the certified market
				participant's principal office and shall be available for audit by the
				commissioner.
b. The certified
				market participant confidential business plan shall be numbered and dated
				sequentially with a corresponding, coordinated numbering system for all
				contracts proposed therein.