Subtitle 1. General Provisions

Chapter 1 General Provisions

Subchapter 1 — General Provisions

Effective Dates. Acts 2019, No. 910, § 6346(b): July 1, 2019. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that this act revises the duties of certain state entities; that this act establishes new departments of the state; that these revisions impact the expenses and operations of state government; and that the sections of this act other than the two uncodified sections of this act preceding the emergency clause titled ‘Funding and classification of cabinet-level department secretaries’ and ‘Transformation and Efficiencies Act transition team’ should become effective at the beginning of the fiscal year to allow for implementation of the new provisions at the beginning of the fiscal year. Therefore, an emergency is declared to exist, and Sections 1 through 6343 of this act being necessary for the preservation of the public peace, health, and safety shall become effective on July 1, 2019”.

2-1-101. Prohibition against center pivot irrigation discharge on interstate.

  1. It is unlawful for a person, sole proprietorship, partnership, or corporation that engages in irrigation of any farm or agricultural lands to intentionally permit or cause any center pivot irrigation water to be discharged onto the traveled portion of any interstate or state highway.
    1. A first violation of this section shall cause a warning to be issued.
    2. Upon conviction of a second or subsequent offense, the offender shall be guilty of a violation and punished by a fine of not less than one hundred dollars ($100) nor more than two hundred fifty dollars ($250).
  2. It is an affirmative defense to prosecution under this section that the discharge of center pivot irrigation waters onto an interstate or state highway resulted from winds of such intensity that no mechanical device that is intended to prevent spray from reaching the roadway could have prevented the spraying or that the discharge resulted from excessive rainfall that contributed to flooding of the roadway.

History. Acts 2001, No. 1753, § 1; 2005, No. 1994, § 2.

Amendments. The 2005 amendment substituted “Upon conviction of a second or subsequent offense, the offender shall be guilty of a violation and punished” for “A second or subsequent offense shall be punishable” in (b)(2).

Research References

U. Ark. Little Rock L. Rev.

Survey of Legislation, 2001 Arkansas General Assembly, Agricultural Law, 24 U. Ark. Little Rock L. Rev. 403.

2-1-102. Sustainable agriculture — Definition.

  1. As used in this section, “sustainable” includes without limitation:
    1. Science-based practices supported by research; and
    2. The use of technology that is demonstrated to lead to broad, outcomes-based performance improvements that:
      1. Meet the needs of the present; and
      2. Improve the ability of future generations to meet their needs while advancing progress toward environmental, social, and economic goals and the well-being of agricultural producers and rural communities.
  2. Sustainable agriculture may use continuous improvement principles with goals that include without limitation:
    1. Increasing agricultural productivity;
    2. Improving human health through access to safe, nutritious, and affordable food; and
    3. Enhancing agricultural and surrounding environments, including without limitation water, soil, and air quality, biodiversity, and habitat preservation.
    1. The Department of Agriculture and the State Plant Board shall interpret any administrative rule or federal rule or regulation promulgated by a state or federal agency that establishes standards for harvesting or producing agricultural crops in accordance with the definition and guidelines provided in this section.
    2. This section does not apply to silviculture and any state rules or federal rules or regulations regarding silviculture.

History. Acts 2011, No. 1196, § 1; 2019, No. 315, § 2; 2019, No. 910, § 9.

Amendments. The 2019 amendment by No. 315 inserted “federal rule or” in (c)(1); and substituted “state rules or federal rules or regulations” for “rules or regulations” in (c)(2).

The 2019 amendment by No. 910 substituted “Department of Agriculture” for “Arkansas Agriculture Department” in (c)(1).

Subchapter 2 — Arkansas Young and Beginning Farmer Advisory Board

A.C.R.C. Notes. Identical Acts 2016 (3rd Ex. Sess.), Nos. 2 and 3, § 1, provided:

“(a) The General Assembly finds:

“(1) State government provides vital functions that impact the lives of Arkansas citizens on a daily basis;

“(2) While these functions are important, it is equally important to ensure that state government operates efficiently and effectively to eliminate unnecessary spending of tax dollars and provide timely and quality services to Arkansas citizens; and

“(3) Issues such as the administrative organization of a governmental entity, the appointment structure of a governmental entity's governing board, and extraneous duties assigned to governmental entities hamper the operation of state government and result in unnecessary expenses and delays in the provision of state services.

“(b) It is the intent of this act to amend provisions of law applicable to certain agencies, task forces, committees, and commission to promote efficiency and effectiveness in the operations of state government as a whole.”

Effective Dates. Identical Acts 2016 (3rd Ex. Sess.), Nos. 2 and 3, § 129: May 23, 2016. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that this act revises the membership and duties of certain agencies, task forces, committees, and commissions and repeals other governmental entities; that these revisions and repeals of governmental entities impact the expenses and operations of state government; and that the provisions of this act should become effective as soon as possible to allow for implementation of the new provisions in advance of the upcoming fiscal year. Therefore, an emergency is declared to exist, and this act being immediately necessary for the preservation of the public peace, health, and safety shall become effective on: (1) The date of its approval by the Governor; (2) If the bill is neither approved nor vetoed by the Governor, the expiration of the period of time during which the Governor may veto the bill; or (3) If the bill is vetoed by the Governor and the veto is overridden, the date the last house overrides the veto.”

2-1-201 — 2-1-206. [Repealed.]

Publisher's Notes. This subchapter, concerning the Arkansas Young and Beginning Farmer Advisory Board, was repealed by identical Acts 2016 (3rd Ex. Sess.), Nos. 2 and 3, § 2. The sections were derived from the following sources:

2-1-201. Acts 2003, No. 1760, § 1; 2009, No. 543, § 1.

2-1-202. Acts 2003, No. 1760, § 1; 2005, No. 1962, § 1.

2-1-203. Acts 2003, No. 1760, § 1; 2007, No. 672, § 1.

2-1-204. Acts 2003, No. 1760, § 1; 2007, No. 672, § 1.

2-1-205. Acts 2003, No. 1760, § 1.

2-1-206. Acts 2003, No. 1760, § 1.

Subchapter 3 — Truth in Labeling of Agricultural Products Edible by Humans

A.C.R.C. Notes. Act 2019, No. 501, § 2, provided: “Severability Clause. If any provision of this act or the application of this act to any person or circumstance is held invalid, the invalidity shall not affect the other provisions or applications of this act which can be given effect without the invalid provision or application, and to this end, the provisions of this act are declared severable.”

Publisher's Notes. See also § 25-38-203(b), added by Acts 2019, No. 741, § 2, which concerns labeling of horticultural, viticultural, livestock, and poultry products that are edible by humans and provides for civil penalties.

2-1-301. Legislative purpose.

The purpose of this subchapter is to protect consumers from being misled or confused by false or misleading labeling of agricultural products that are edible by humans.

History. Acts 2019, No. 501, § 1.

2-1-302. Definitions.

As used in this subchapter:

  1. “Agricultural product” means a horticultural, viticultural, forestry, dairy, livestock, poultry, or bee product or any other farm, ranch, plantation, or range product;
  2. “Beef” means the flesh of a domesticated bovine, such as a steer or cow, that is edible by humans;
  3. “Beef product” means an agricultural product that is edible by humans and produced in whole or in part from beef, including without limitation beef jerky, beef patties, chopped beef, fabricated steak, hamburger, ground beef, ribs, and roast;
  4. “Label” means a display of written, printed, or graphic matter upon or affixed to the container or wrapper in which an agricultural product that is edible by humans is offered for direct retail sale;
  5. “Labeling” means the act of identifying, describing, or advertising an agricultural product that is edible by humans by means of the label or through other means;
  6. “Livestock” means swine, bovines, sheep, and goats;
    1. “Meat” means a portion of a livestock, poultry, or cervid carcass that is edible by humans.
    2. “Meat” does not include a:
      1. Synthetic product derived from a plant, insect, or other source; or
      2. Product grown in a laboratory from animal cells;
  7. “Meat product” means an agricultural product that is edible by humans and made wholly or in part from meat or another portion of a livestock, poultry, or cervid carcass;
  8. “Misbrand” means to identify an agricultural product edible by humans in a false or misleading way;
  9. “Misrepresent” means to use any untrue, misleading, or deceptive oral or written statement, advertising, label, display, picture, illustration, or sample;
  10. “Person” means an individual, partnership, limited liability company, limited liability partnership, corporation, firm, company, or other entity doing business in Arkansas;
  11. “Pork” means the flesh of a domesticated swine that is edible by humans;
  12. “Pork product” means an agricultural product that is edible by humans and produced in whole or in part from pork, including without limitation bacon, bratwurst, ground pork, ham, pork chops, ribs, roast, and sausage;
  13. “Poultry” means domestic birds that are edible by humans; and
  14. “Rice” means the whole, broken, or ground kernels or by-products obtained from the species Oryza sativa L. or Oryza glaberrima, or wild rice, which is obtained from one (1) of the four (4) species of grasses from the genus Zizania or Porteresia.

History. Acts 2019, No. 501, § 1.

2-1-303. Applicability.

This subchapter applies only to a person that places a label on an agricultural product that is edible by humans.

History. Acts 2019, No. 501, § 1.

2-1-304. Administration.

The Director of the Arkansas Bureau of Standards shall:

  1. Administer and enforce this subchapter;
  2. Promulgate rules to implement the purposes and requirements of this subchapter; and
  3. Receive and investigate complaints regarding alleged violations of this subchapter and the rules promulgated by the director.

History. Acts 2019, No. 501, § 1.

2-1-305. Prohibited activities.

A person shall not misbrand or misrepresent an agricultural product that is edible by humans, including without limitation by:

  1. Affixing a label that is false or misleading;
  2. Selling the agricultural product under the name of another food;
  3. Omitting information required under § 20-56-209 from the label;
  4. Placing information on the label in a way that does not conform with the requirements under § 20-56-209;
  5. Representing the agricultural product as a food for which a definition and standard of identity has been provided by regulations under § 20-56-219 or by the Federal Food, Drug, and Cosmetic Act, 21 U.S.C. § 301 et seq., as it existed on January 1, 2019, unless:
    1. The agricultural product conforms to the definition and standard; and
    2. The label of the agricultural product bears the name of the food specified in the definition and standard and includes the common names of optional ingredients other than spices, flavoring, and coloring present in the food as regulations require;
  6. Representing the agricultural product as meat or a meat product when the agricultural product is not derived from harvested livestock, poultry, or cervids;
  7. Representing the agricultural product as rice when the agricultural product is not rice;
  8. Representing the agricultural product as beef or a beef product when the agricultural product is not derived from a domesticated bovine;
  9. Representing the agricultural product as pork or a pork product when the agricultural product is not derived from a domesticated swine;
  10. Utilizing a term that is the same as or similar to a term that has been used or defined historically in reference to a specific agricultural product; or
  11. Affixing a label that uses a variation of rice in the name of the agricultural product when the agricultural product is not rice or derived from rice.

History. Acts 2019, No. 501, § 1.

2-1-306. Civil penalty.

    1. A person that violates § 2-1-305 shall be fined an amount not to exceed one thousand dollars ($1,000) for each violation.
    2. Each item that violates § 2-1-305 constitutes a separate violation subject to the civil penalty provided in subdivision (a)(1) of this section.
    1. A person subject to a civil penalty under subsection (a) of this section may request an administrative hearing within ten (10) calendar days after receipt of the notice of the penalty.
    2. Upon request, the Director of the Arkansas Bureau of Standards shall conduct a hearing after giving appropriate notice to the person, and the decision of the director is subject to appropriate judicial review.
      1. If a person subject to a civil penalty under subsection (a) of this section has exhausted all administrative appeals and the civil penalty has been upheld, the person or entity shall pay the civil penalty within twenty (20) calendar days after the effective date of the final decision.
      2. If the person fails to pay the civil penalty as required under this section, a civil action may be brought by the director in a court of competent jurisdiction to recover the civil penalty.
      3. A civil penalty collected under this section shall be deposited into the Plant Board Fund.
  1. The director may waive a civil penalty for a violation of § 2-1-305 if:
    1. He or she determines that the violation was accidental, erroneous, or unintentional; or
    2. The person that violated § 2-1-305 publicly acknowledges the violation and issues a voluntary recall for the mislabeled products.

History. Acts 2019, No. 501, § 1.

Chapter 2 Agricultural Cooperative Associations

Cross References. Wildlife causing crop damage, § 15-44-114.

Research References

Am. Jur. 18 Am. Jur. 2d, Coop. Asso., § 1 et seq.

Ark. L. Notes.

Matthews, Agricultural Cooperatives in Arkansas — Abuse of Discretion in Retiring Equity, 1985 Ark. L. Notes 79.

Ark. L. Rev.

Organization of Agricultural Marketing Cooperatives, 5 Ark. L. Rev. 173.

Fee and Hoberg, Potential Liability of Directors of Agricultural Cooperatives, 37 Ark. L. Rev. 60.

C.J.S. 3 C.J.S., Agri., § 169 et seq.

U. Ark. Little Rock L.J.

Mathews, Corporate Statutes — Which One Applies?, 13 U. Ark. Little Rock L.J. 83.

Subchapter 1 — General Provisions

Cross References. Cooperative associations, § 4-30-101 et seq.

Liability of cooperatives for torts, § 4-30-118.

Taxation exemption of receipts from sale of certain agricultural products, § 26-52-405.

Effective Dates. Acts 1963, No. 90, § 2: Feb. 27, 1963. Emergency clause provided: “It is hereby found and determined by the General Assembly that newly established regulations of the federal government are working undue hardships on a number of cooperatives organized under the laws of this state; that such hardships are the result of existing provisions of laws of this state governing such cooperatives; and, that the immediate passage of this act is necessary to make the needed changes in the laws governing such cooperatives in order to remove such hardships. Therefore, an emergency is hereby declared to exist and this act being necessary for the immediate preservation of the public peace, health and safety, shall be in full force and effect from and after its passage and approval.”

Acts 1969, No. 311, § 3: Mar. 24, 1969. Emergency clause provided: “It is hereby found and determined by the General Assembly that additional revenues will be needed during the next biennium to maintain the present level of state services; that thousands of dollars are being lost in revenues to this state through special exemptions and exclusions contained in the various tax laws of this state; and that in order to remove these exemptions and exclusions and thereby increase the revenues from such sources, it is necessary that this act become effective immediately. Therefore, an emergency is hereby declared to exist and this act, being necessary for the immediate preservation of the public peace, health and safety shall become effective from and after its passage and approval.”

Case Notes

Cited: Jefferson Coop. Gin, Inc. v. Milam, 255 Ark. 479, 500 S.W.2d 932 (1973); Conway County Farmers Ass'n v. United States, 588 F.2d 592 (8th Cir. 1978).

2-2-101. Purpose.

  1. The purposes of this subchapter are to provide for:
    1. The formation and operation of agricultural cooperative associations; and
    2. The rights, powers, liabilities, and duties of cooperative associations.
  2. Associations organized under this subchapter shall be deemed to be nonprofit, inasmuch as they are not organized for the purpose of making profits for themselves or for their members as proprietors, but only for their members as patrons and employees of the associations.

History. Acts 1939, No. 153, § 1; A.S.A. 1947, § 77-1001.

Case Notes

Cited: Two Bros. Farm v. Riceland Foods, Inc., 57 Ark. App. 25, 940 S.W.2d 889 (1997).

2-2-102. Definitions.

As used in this subchapter, unless the context otherwise requires:

  1. “Agricultural products” means horticultural, viticultural, forestry, dairy, livestock, poultry, bee, and any other farm, ranch, plantation, and range products;
  2. “Association” means any association organized under this subchapter;
  3. “Member” means a member of record as determined under the articles of association and bylaws of an association. The term “member” shall include the holder of a membership in an association without capital stock and the holder of common stock in an association organized with capital stock; and
  4. “Person” means individuals, firms, partnerships, corporations, and associations.

History. Acts 1939, No. 153, § 2; 1981, No. 121, § 1; A.S.A. 1947, § 77-1002.

2-2-103. Construction.

  1. Any provisions of law which otherwise would be in conflict with this subchapter shall not be construed as applying to an association provided for in this subchapter.
  2. No provision of law shall be deemed to be repealed by this subchapter.
  3. This subchapter shall not affect the provisions of the Cooperative Marketing Act, § 2-2-401 et seq.

History. Acts 1939, No. 153, § 26; A.S.A. 1947, § 77-1025.

2-2-104. Who may organize.

Any number of persons, not less than five (5), who are engaged in the production of agricultural commodities may form a cooperative association with or without capital stock under the provisions of this subchapter.

History. Acts 1939, No. 153, § 3; A.S.A. 1947, § 77-1003.

2-2-105. Reasons for organizing.

An association may be organized to engage in any agricultural or related activity, including, but without limitation, any activity in connection with the producing, marketing, selling, harvesting, dairying, preserving, drying, processing, canning, packing, milling, ginning, compressing, storing, transporting, handling, or utilization of any agricultural or forestry products produced by it or delivered to it by its members or others; with the manufacturing or marketing of the by-products thereof, or in connection with the purchase, hiring, or use by it or its members or others of supplies, machinery, or equipment; in the acquisition or improvement of land; in the construction or maintenance of houses, barns, sheds, or facilities for its use or the use of its members; for indemnifying or replacing damaged, lost, or destroyed livestock or other tangible personal property pertaining to agriculture belonging to its members; in burial activities; or the furnishing of medical, dental, health, hospitalization, nursing, or any related services, or medicines or medical supplies to its members and their families.

History. Acts 1939, No. 153, § 4; A.S.A. 1947, § 77-1004.

2-2-106. Powers.

Each association incorporated under this subchapter shall have the following powers:

  1. To engage in any activity in connection with any agricultural or related activity, including, but without limitation, any activity in connection with the producing, marketing, selling, harvesting, dairying, preserving, drying, processing, canning, packing, milling, ginning, compressing, storing, transporting, handling, or utilization of any agricultural or forestry products produced by it or delivered to it by its members or others; with the manufacturing or marketing of the by-products thereof; in connection with the purchase, hiring, or use by it or its members or others of supplies, machinery, or equipment; in the acquisition or improvement of land; in the construction or maintenance of houses, barns, sheds, or facilities for its use or the use of its members; for indemnifying or replacing damaged, lost, or destroyed livestock or other tangible personal property pertaining to agriculture belonging to its members; in burial activities; or the furnishing of medical, dental, health, hospitalization, nursing, or any related services, or medicines or medical supplies to its members and their families;
  2. To borrow money and to make advances to members;
    1. To establish funds in pools for the purposes of indemnifying or replacing damaged, lost, or destroyed livestock or other tangible personal property pertaining to agriculture belonging to members.
    2. Associations organized under this subchapter which shall engage in the activities enumerated in this subdivision (3) shall not be deemed to be insurance companies and shall not be subject to the insurance laws of Arkansas;
  3. To purchase or otherwise acquire and to hold, own, and exercise all rights of ownership in, and to sell, transfer, or pledge or guarantee the payment of dividends or interest on, or the retirement or redemption of shares of the capital stock or bonds of any corporation or association engaged in any related activity or in the production, warehousing, handling, or marketing of any of the products of the type handled by the association;
  4. To establish reserves and to invest those funds in bonds or such other property as may be provided in the bylaws;
  5. To purchase or otherwise acquire or to buy, hold, and exercise all privileges of ownership or tenancy over such real and personal property as may be necessary or convenient for the conducting and operating of any of the business of the association or incidental thereto;
    1. To arrange medical, dental, health, surgical, nursing, hospitalization, and related services and benefits for the members and families of the members.
    2. Associations organized under this subchapter for the purposes specified in this subdivision (7) shall not be deemed to be insurance companies and shall not be subject to the insurance laws of Arkansas;
    1. To do each and every thing necessary, suitable, or proper for the accomplishment of any of the purposes or the attainment of any one (1) or more of the objects enumerated in this section, or conducive to or expedient for the interest or benefit of the association, and to contract accordingly.
    2. In addition, to exercise and possess all powers, rights, and privileges necessary or incidental to the purposes for which the association is organized or to the activities in which it is engaged, and to do any such thing anywhere;
  6. To contract and to sue and be sued; and
  7. To act as agent or representative of any members or others in any of the activities enumerated in this section.

History. Acts 1939, No. 153, § 6; A.S.A. 1947, § 77-1006.

Case Notes

Wine Manufacturer.

The manufacture of wine does not come within the purview of this section. Altus Coop. Winery v. Morley, 218 Ark. 492, 237 S.W.2d 481 (1951).

2-2-107. Members.

    1. Under the terms and conditions prescribed in its bylaws, an association formed under this subchapter may admit any persons as members who are engaged in the production of agricultural commodities, including the lessees and tenants of lands used for production of agricultural commodities and lessors and landlords who receive as rent all or part of the crops raised on the leased premises, and issue certificates of common stock or membership to them.
    2. Certificates of stock or membership shall not be transferable except as provided in the articles of association or the bylaws. No person shall otherwise acquire, by operation of law or otherwise, the benefits of membership except as provided in this subchapter.
  1. If a member of any association organized under this subchapter is other than a natural person, the member may be represented by any individual, associate, officer, manager, or member thereof, duly authorized in writing.

History. Acts 1939, No. 153, § 7; A.S.A. 1947, § 77-1007.

Case Notes

Sharecroppers and Tenants.

Sharecropper who received part of proceeds of cotton crop delivered to cooperative gin would, under articles and bylaws of association, share in the patronage payments regardless of whether he or she was a stockholder or member of the cooperative, in the absence of any contract to the contrary. Houck v. Birmingham, 217 Ark. 449, 230 S.W.2d 952 (1950).

Sharecroppers and tenants were entitled to claim refunds where cotton gin cooperative realized a profit. Collie v. Coleman, 223 Ark. 206, 265 S.W.2d 515 (1954).

2-2-108. Articles of association.

  1. Each association formed under this subchapter must prepare and file articles of association, setting forth:
    1. The name of the association;
    2. The purposes for which it is formed;
    3. The place where its principal business will be transacted, which shall be its domicile;
    4. The term for which it is to exist, which may be perpetual;
    5. The number of directors thereof, which must not be fewer than five (5) and may be any number in excess thereof, and the term of office of the directors;
    6. If organized without capital stock, the classes of membership, if more than one (1) class of membership is authorized, and the rules determining the property rights of all classes of members in the event of dissolution; and
      1. If organized with capital stock, the amount of stock and the number of shares into which it is divided and the par value thereof.
        1. The capital stock may be divided into preferred and common stock.
        2. If so divided, the articles of association must contain a statement of the number of shares of stock to which preference is granted, the nature and definite extent of the preference and privileges granted to each, and the number of shares of stock to which no preference is granted.
  2. The articles must be subscribed by the incorporators and acknowledged by them before an officer authorized by the law of this state to take and certify acknowledgments. They shall be filed and recorded in the office of the Secretary of State.

History. Acts 1939, No. 153, § 8; A.S.A. 1947, § 77-1008.

2-2-109. Amendments to articles.

  1. The articles of association may be altered or amended at any regular or special meeting of the stockholders or members called for that purpose.
  2. Amendments to the articles of association, when so adopted, shall be certified by the president and secretary of the association and shall be filed with the Secretary of State.

History. Acts 1939, No. 153, § 9; A.S.A. 1947, § 77-1009.

2-2-110. Bylaws — Amendment of articles or bylaws.

    1. Each association incorporated under this subchapter must adopt for its government and management a code of bylaws not inconsistent with the articles of association or the powers granted in this subchapter.
    2. A majority vote of the incorporators and members or stockholders or their written assent is necessary to adopt the bylaws.
    3. Each association under its bylaws may provide without limitation for any or all of the following matters:
      1. The time, place, and manner of calling and conducting its meetings;
      2. The number of stockholders or members constituting a quorum;
        1. The right of members or stockholders to vote; and
        2. The conditions, manner, form, and effect of such votes;
      3. The number of directors constituting a quorum;
        1. The qualifications, duties, and terms of office of directors and officers;
        2. The time of their election; and
        3. The mode and manner of giving notice thereof;
      4. Penalties for violations of the bylaws;
      5. The form and manner of amendment of bylaws;
        1. The amount of entrance, organization, and membership fees, if any;
        2. The manner and method of collection of the fees; and
        3. The purposes for which they may be used;
        1. The amount which each member or stockholder shall be required to pay annually or from time to time, if at all, to carry on the business of the association;
        2. The charge, if any, to be paid by each member or stockholder for services rendered by the association to him or her and the time of payment and the manner of collection; and
        3. The producing, marketing, renting, leasing, or other contract between the association and its members or stockholders, which every member or stockholder may be required to sign; and
        1. The qualifications of members or stockholders of the association and the conditions precedent to membership or ownership of common and preferred stock;
        2. The method, time, and manner of permitting members to withdraw;
        3. The manner of assignment and transfer of the interest of members and of the shares of common and preferred stock;
        4. The conditions upon which and the time when membership of any member shall cease;
        5. The mode, manner, and effect of the expulsion of a member;
        6. The manner of determining the value of a member's or stockholder's interest and the provision for its purchase by the association upon the death or withdrawal of a member or stockholder or upon the expulsion of a member or forfeiture of his or her membership;
        7. The method, time, and manner of allotment and distribution of surpluses;
        8. The manner and method of removal from office of any officer or director of the association; and
        9. The manner and method of filling vacancies.
    1. For the purpose of amending the articles of association or for the purpose of amending the bylaws of the association, or for both purposes, a quorum for any stockholders' meeting for all associations organized under this subchapter shall be members or voting stockholders representing five percent (5%) of the voting power of the association who shall be present in person or voting by proxy.
    2. As to all other association business, the quorum established by the stockholders or members as authorized in subdivision (a)(3)(B) of this section, which may include members or stockholders voting in person or by proxy, shall govern.
  1. For the purpose of amending articles of association or for the purpose of amending bylaws of the association, or for both purposes, a majority vote of the votes cast at a meeting at which a quorum is present, in person or by proxy, shall be sufficient to adopt amendments.

History. Acts 1939, No. 153, § 10; 1963, No. 90, § 1; 1983, No. 163, § 1; A.S.A. 1947, § 77-1010.

Case Notes

Cited: Robertson v. White, 635 F. Supp. 851 (W.D. Ark. 1986).

2-2-111. Regular and special meetings.

  1. In its bylaws, each association shall provide for one (1) or more regular meetings annually.
    1. The board of directors shall have the right to call a special meeting at any time. Members or stockholders holding ten percent (10%) of the voting power may file a petition with the chair of the board stating the specific business to be brought before the association and demand a special meeting at any time.
    2. These meetings must be called by the board.
    1. Notice of all meetings, together with a statement of the purposes thereof, shall be mailed to each member at least five (5) days before the meeting.
    2. The bylaws may require instead that the notice may be given by publication in a newspaper of general circulation, published at the principal place of business of the association. If no newspaper is published at that place, notice may be given in a newspaper having circulation at the principal place of business of the association.

History. Acts 1939, No. 153, § 11; 1983, No. 163, § 2; A.S.A. 1947, § 77-1011.

2-2-112. Board of directors.

    1. The affairs of the association shall be managed by a board of not less than five (5) directors.
        1. The bylaws may provide that the territory in which the association has members shall be divided into districts and that the directors shall be elected according to the districts.
        2. In such cases, the bylaws shall specify the number of directors to be elected by each district and the manner and method of reapportioning the directors and redistricting the territory covered by the association. The bylaws may provide for a quorum of the directors in each district.
      1. The bylaws may provide that primary elections should be held in each district to elect the directors apportioned to the districts, and the results of all the primary elections must be ratified by the next regular meeting of the association or may be considered final as to the association.
  1. The bylaws may provide that one (1) or more directors may be appointed by the Governor, the Dean of the College of Agriculture of the University of Arkansas at Fayetteville, or any other designated federal or state public official or commission.
    1. Where not otherwise prohibited by the bylaws, the directors of the association may provide a fair remuneration for the time actually spent by its officers, directors, and employees in its service.
    2. No director, during the term of his or her office, shall be a party to a contract for profit with the association differing in any way from the business relations accorded regular members or holders of common stock of the association.
  2. The bylaws may provide for an executive committee and may allot to the committee all the functions and powers of the board of directors, subject to the general direction and control of the board.

History. Acts 1939, No. 153, § 12; A.S.A. 1947, § 77-1012.

2-2-113. Officers.

  1. The board of directors shall elect a president, one (1) or more vice presidents, a secretary, and a treasurer, and they may combine the two (2) latter officers and designate the combined office as secretary-treasurer.
    1. The treasurer may be a bank or any depository, and as such shall not be considered as an officer but as a functionary of the board.
    2. In such case, the secretary shall perform the usual accounting duties of the treasurer, excepting that the funds shall be deposited only as authorized by the board.

History. Acts 1939, No. 153, § 13; A.S.A. 1947, § 77-1013.

Case Notes

Cited: Robertson v. White, 635 F. Supp. 851 (W.D. Ark. 1986).

2-2-114. Certificates of membership or stock.

  1. When a member of an association established without capital stock has paid his or her membership fee in full, he or she shall receive a certificate of membership.
  2. Except for debts lawfully contracted between the member and the association, no member shall be liable for the debts of the association to an amount exceeding the sum remaining unpaid on his or her membership fee or his or her subscription to the capital stock, including any unpaid balance on any promissory notes given in payment thereof.
    1. Unless provided otherwise in the articles of association or bylaws of an association, no member or stockholder shall be entitled to more than one (1) vote.
    2. In an election for directors, the number of votes a member or stockholder is entitled to cast may be multiplied by the number of directors being elected. The member or stockholder may distribute the votes among as many candidates as he or she shall see fit.
  3. Any provision of this subchapter or any other law which is applied to an association organized under this subchapter, referring to requirements for a vote or quorum based on a total number or proportion of members or stockholders, shall mean the number or proportion of the votes entitled to be cast by the members or stockholders where an association's articles of association or bylaws entitle any member to more than one (1) vote.
  4. For purposes of this subchapter or any other law which is applied to an association formed under this subchapter, if permitted by the articles of association or the bylaws of the association, any vote of a member or stockholder may be made in person or by proxy and may be counted in the establishment of a quorum.
    1. No stockholder of a cooperative association organized under this subchapter shall own more than one-twentieth (1/20) of the common stock of the association or more than one (1) share of common stock if there are fewer than twenty (20) common stockholders.
    2. Such an association, in its bylaws, may limit the amount of common stock which one (1) member may own to any amount less than one-twentieth (1/20) of the common stock.
    1. Any association organized with stock under this subchapter may issue preferred stock, with or without the right to vote.
    2. The stock may be redeemable or retirable by the association on such terms and conditions as may be provided for by the articles of association and printed on the face of the certificate.
      1. No association shall issue stock or a membership certificate to a member until it has been fully paid for.
      2. The promissory notes of the members may be accepted by the association as full or partial payment.
    1. The association shall hold the stock or membership certificate as security for the payment of the note, but such retention as security shall not affect the member's right to vote.

History. Acts 1939, No. 153, § 14; 1983, No. 163, § 3; A.S.A. 1947, § 77-1014.

2-2-115. Matters referred to membership.

Upon demand of one-third (1/3) of the entire board of directors, any matter that has been approved or passed by the board must be referred to the entire membership or the stockholders for decision at the next special or regular meeting. A special meeting may be called for that purpose.

History. Acts 1939, No. 153, § 15; A.S.A. 1947, § 77-1015.

2-2-116. Marketing contracts — Participation agreements.

    1. Upon resolution adopted by its board of directors, any association may enter into all necessary and proper contracts and agreements and make all necessary and proper stipulations, agreements, contracts, and arrangements with its members, other persons, cooperatives, corporations, or associations formed in this or any other state for the cooperative and more economical carrying on of its business or any parts of its business.
    2. Any two (2) or more associations by agreement between them may unite in employing and using or may expressly employ and use the same methods, means, and agencies for carrying on and conducting their respective businesses.
  1. In addition to or in lieu of the marketing contracts authorized in subsection (a) of this section, the association and its members or others may make and execute any other type of participation agreement in cases in which the association will engage in other than marketing activities as authorized under this subchapter.

History. Acts 1939, No. 153, § 16; A.S.A. 1947, § 77-1016.

Case Notes

Agency.

Contract between taxpayer and cooperative association to defer payment for rice could be construed as establishing association as taxpayer's agent rather than providing for sale of rice to association. Oliver v. United States, 193 F. Supp. 930 (E.D. Ark. 1961).

Rental Contracts.

Sharecroppers and tenants were entitled to claim refunds where cotton gin cooperative company realized a profit; where rental contracts were silent as to refunds, burden of proof was upon principal stockholder landlord to show that tenants waived refunds. Collie v. Coleman, 223 Ark. 206, 265 S.W.2d 515 (1954).

2-2-117. Remedies for breach of bylaws or contracts.

    1. The bylaws or the marketing or participation contract of any association existing under this subchapter may fix specific sums as liquidated damages to be paid by the member or stockholder to the association upon the breach or threatened breach by him or her of any provision of the participation agreement or upon the breach or threatened breach by him or her of any provision of the marketing contract regarding the sale or delivery or withholding of products.
    2. These instruments may further provide that the member will pay all costs, premiums for bonds, expenses, and fees in case any action is brought upon the contract by the association.
    3. These provisions shall be valid and enforceable in the courts of this state, and the clauses providing for liquidated damages shall be enforceable as such and shall not be regarded as penalties.
    1. In the event of any breach or threatened breach of the marketing contract by a member or other person, the association shall be entitled to an injunction to prevent the breach or further breach of the contract and to a decree of specific performance of the contract.
      1. Pending the adjudication of the action and upon filing a verified complaint showing the breach or threatened breach and upon filing a bond in the sum of one hundred dollars ($100), the association shall be entitled to an injunction against the member or other person.
      2. The judge, in his or her discretion, may increase the bond to five hundred dollars ($500), after a hearing on five (5) days' notice to the parties if justice demands an increase in the amount of the bond.
  1. In any civil action, upon any marketing contract of any member with any association existing under this subchapter, it shall be conclusively presumed that the products produced by any person, firm, or corporation during the period of time covered by the marketing contract, on the land of the member, however and by whomsoever produced, are the products of the member. As such, the products of the member are subject to the marketing contract if the products have been grown or acquired under any contract between the member and the other person, firm, or corporation entered into after the execution of the marketing contract. In such actions, the remedies for nondelivery or breach shall lie and be enforceable against the persons, firms, or corporations.

History. Acts 1939, No. 153, § 17; A.S.A. 1947, § 77-1017.

Case Notes

Res Judicata.

Where an action was brought under this subchapter and the matters relating thereto were finally determined adversely to the appellant on a prior appeal, it became the law of the case and a second case could not be considered. Collie v. Coleman, 226 Ark. 692, 292 S.W.2d 80 (1956).

2-2-118. Penalties for inducing breach of contract.

Any person or any corporation whose officers or employees knowingly induce or attempt to induce any person to breach his or her marketing or participation contract with an association shall be guilty of a violation and upon conviction shall be subject to a fine of not less than one hundred dollars ($100) nor more than one thousand dollars ($1,000) for the offense and shall be liable to the association aggrieved in a civil suit in the penal sum of five hundred dollars ($500) for each offense.

History. Acts 1939, No. 153, § 21; A.S.A. 1947, § 77-1021; Acts 2005, No. 1994, § 3.

Amendments. The 2005 amendment substituted “violation and upon conviction” for “misdemeanor”.

2-2-119. General corporation laws.

The provisions of the general corporation laws of this state, and all powers and rights thereunder, shall apply to the associations organized under this subchapter, except where the provisions are in conflict with or inconsistent with the express provisions of this subchapter.

History. Acts 1939, No. 153, § 18; A.S.A. 1947, § 77-1018.

Cross References. Business Corporation Act of 1987, § 4-27-101 et seq.

General corporation laws, § 4-26-101 et seq.

Case Notes

Cited: Robertson v. White, 635 F. Supp. 851 (W.D. Ark. 1986).

2-2-120. Interest in similar entities.

An association organized or existing under this subchapter may organize, form, operate, own, control, have an interest in, own stock of, or be a member of any corporation or association, with or without capital stock, engaged in any of the activities authorized under this subchapter, whether formed under this subchapter or any other law of this or any other state.

History. Acts 1939, No. 153, § 19; A.S.A. 1947, § 77-1019.

2-2-121. Existing entities may participate.

    1. Any corporation or association organized under previously existing statutes for purposes authorized in this subchapter, which are otherwise eligible under the provisions of this subchapter, may be brought under the provisions of this subchapter by a majority vote of its stockholders or members.
      1. It shall make out in duplicate a statement signed and sworn to by the president or vice president and secretary to the effect that the corporation or association has decided, by a majority vote of its stockholders or members, to accept the benefits and be bound by the provisions of this subchapter. The statement shall be filed with the charter or articles of association.
      2. The charter or articles of association of the corporation or association shall be amended, if necessary, to comply with the provisions of this subchapter. The charter or articles of association shall be filed as required in this subchapter, except that they shall be signed by a majority of the members of the board of directors.
  1. The bylaws of the corporation or association shall also be amended, if necessary, to comply with the provisions of this subchapter.
  2. The filing fee for filing the statement and charter or articles of association shall be the same as for filing an amendment to the articles of association.

History. Acts 1939, No. 153, § 20; A.S.A. 1947, § 77-1020.

2-2-122. Arrangements not in restraint of trade.

No association organized or existing under this subchapter shall be deemed to be a combination in restraint of trade or an illegal monopoly or an attempt to lessen competition or fix prices arbitrarily, nor shall the marketing or participation contracts or agreements between the association and its members or others or any agreements authorized by this subchapter be considered illegal or in restraint of trade.

History. Acts 1939, No. 153, § 22; A.S.A. 1947, § 77-1022.

2-2-123. Annual license fee — Taxation.

  1. Each association organized or existing under this subchapter shall pay an annual license fee of ten dollars ($10.00) to the Secretary of State.
    1. In addition, each association shall be subject to the Arkansas Gross Receipts Act of 1941, as amended, § 26-52-101 et seq., and the Arkansas Compensating Tax Act of 1949, as amended, § 26-53-101 et seq., and all other taxes levied in this state. However, any association which immediately distributes at the close of each business year all surpluses by cash or certificate to its members shall not be subject to the Income Tax Act of 1929, § 26-51-101 et seq., with respect to the income.
    2. Each association shall be subject to taxes upon its real estate and personal property.

History. Acts 1939, No. 153, § 24; 1969, No. 311, § 1; A.S.A. 1947, § 77-1023.

Case Notes

Tax Exemptions.

To be exempt from license and privilege taxes, an association must be acting within powers granted to it. Altus Coop. Winery v. Morley, 218 Ark. 492, 237 S.W.2d 481 (1951).

Nonprofit agriculture cooperative was exempt from the corporate franchise tax although 1969 amendment to this section removed cooperative's exemptions from some other state taxes, as tax statute must be made expressly applicable to entity and mere removal of some tax exemptions did not allow levying of franchise tax on nonprofit cooperative. Jefferson Coop. Gin, Inc. v. Milam, 255 Ark. 479, 500 S.W.2d 932 (1973).

Tax on Winery.

Association is not entitled to manufacture wine from grapes grown by its members and then sell the wine at wholesale without paying privilege taxes imposed on other wineries. Altus Coop. Winery v. Morley, 218 Ark. 492, 237 S.W.2d 481 (1951).

2-2-124. Filing fees.

For filing articles of association, an association organized under this subchapter shall pay five dollars ($5.00), and it shall pay two dollars and fifty cents ($2.50) for filing an amendment to the articles.

History. Acts 1939, No. 153, § 25; A.S.A. 1947, § 77-1024.

Subchapter 2 — Cotton Associations

Effective Dates. Acts 1939, No. 12, § 3: effective on passage.

2-2-201. Membership.

  1. A person, firm, or corporation shall become a member of a cotton cooperative association organized and domesticated under the laws of the State of Arkansas only when the membership contract shall be in duplicate and shall state the time of the duration of each contract signed both by the member and the association.
  2. The signature of any person on a draft or check containing conditions which purport to make a person a member of a cotton cooperative association as a prerequisite to obtaining money on any draft or check given to him or her for any cotton which he or she has sold or pledged to any cotton cooperative association shall not be construed as making the person a member of the association, even though he or she has signed or endorsed the check or draft.

History. Acts 1939, No. 12, § 1; 1939, No. 202, § 1; A.S.A. 1947, § 77-1026.

2-2-202. Penalty.

  1. Any person, firm, or corporation violating any provision of § 2-2-201 shall be guilty of a Class A misdemeanor.
  2. Each violation of any provision of § 2-2-201 shall be deemed a separate offense.

History. Acts 1939, No. 12, § 1-A; 1939, No. 202, § 1-A; A.S.A. 1947, § 77-1027; Acts 2005, No. 1994, § 330.

Amendments. The 2005 amendment substituted “a Class A misdemeanor” for “a misdemeanor and, upon conviction, punished by a fine of not less than one hundred dollars ($100) and not more than one thousand dollars ($1,000) or by imprisonment of a period of not less than thirty (30) days or not more than six (6) months, or both, in the discretion of the court” in (a).

Subchapter 3 — Merger and Consolidation

2-2-301. Applicability.

Except as otherwise provided in this subchapter, the provisions of this subchapter shall apply exclusively to the merger, consolidation, mortgage, sale, and lease of assets of and by an association subject to the provisions of this subchapter.

History. Acts 1981, No. 121, § 13; A.S.A. 1947, § 77-1039.

2-2-302. Provisions supplemental.

  1. The provisions of this subchapter shall be supplemental to, and part of, §§ 2-2-101 — 2-2-124, 2-2-201, and 2-2-202, and legislation amendatory and supplemental to these provisions relating to agricultural cooperative associations.
  2. The definitions of terms in § 2-2-102 shall be equally applicable with respect to terms used in this subchapter.

History. Acts 1981, No. 121, § 14; 1985, No. 385, § 10; A.S.A. 1947, § 77-1040.

2-2-303. Procedure for merger.

  1. Any two (2) or more domestic associations created under § 2-2-101 et seq. may merge into one (1) of these associations under a plan of merger approved in the manner provided in this subchapter.
  2. The board of directors of each association shall, by resolution adopted by each board, approve a plan of merger setting forth:
    1. The names of the associations proposing to merge and the name of the association into which they propose to merge, which is designated as the “surviving association”;
    2. The terms and conditions of the proposed merger;
    3. The manner and basis of converting the shares, patronage, or other interests of each merging association into shares or other interests of the surviving association;
    4. A statement of any changes in the articles of incorporation of the surviving association to be affected by the merger;
    5. The time when the merger shall become effective; and
    6. Such other provisions with respect to the proposed merger as are deemed necessary or desirable.

History. Acts 1981, No. 121, § 2; A.S.A. 1947, § 77-1028.

2-2-304. Procedure for consolidation.

  1. Any two (2) or more domestic associations created under § 2-2-101 et seq. may consolidate into a new association under a plan of consolidation approved in the manner provided in this subchapter.
  2. The board of directors of each association by a resolution adopted by each board shall approve a plan of consolidation setting forth:
    1. The names of the associations proposing to consolidate, and the name of the new association into which they propose to consolidate, which is designated as the “new association”;
    2. The terms and conditions of the proposed consolidation;
    3. The manner and basis of converting the shares, patronage, or other interests of each association into shares or other interests of the new association;
    4. With respect to the new association, all of the statements required to be set forth in articles of incorporation for associations organized under this subchapter;
    5. The time when the consolidation shall become effective; and
    6. Such other provisions with respect to the proposed consolidation as are deemed necessary or desirable.

History. Acts 1981, No. 121, § 3; A.S.A. 1947, § 77-1029.

2-2-305. Approval by members — Abandonment.

    1. Upon approving the plan of merger or plan of consolidation, the board of directors of each association by resolution shall direct the plan be submitted to a vote at a meeting of members, which may be either an annual or a special meeting.
      1. Written or printed notice shall be given to each member not less than twenty (20) days before the meeting, in the manner provided in this subchapter for the giving of notice of meetings to members, and shall state the purpose of the meeting, whether the meeting is an annual or a special meeting.
      2. A copy or a summary of the plan of merger or plan of consolidation, as the case may be, shall be included in or enclosed with the notice.
    1. At each meeting, a vote of the members shall be taken on the proposed plan of merger or consolidation.
    2. Each member of each association shall be entitled to vote on the proposed plan of merger or consolidation.
    3. The plan of merger or consolidation shall be approved upon receiving the affirmative vote of at least two-thirds (2/3) of the votes cast at the meeting in which members holding not less than fifty percent (50%) of the voting power of the association are represented in person or by proxy.
  1. After approval by a vote of the members of each association and at any time before the filing of the articles of merger or consolidation, the merger or consolidation may be abandoned under provisions, if any, set forth in the plan of merger or consolidation.

History. Acts 1981, No. 121, § 4; 1983, No. 163, § 4; A.S.A. 1947, § 77-1030.

2-2-306. Articles of merger or consolidation.

Upon approval, articles of merger or articles of consolidation shall be executed by each association and filed in accordance with this subchapter, which shall be certified by the president and secretary of each association signing them and shall set forth:

  1. The plan of merger or the plan of consolidation, including the time when it shall become effective;
  2. As to each association:
    1. The number of shares or memberships outstanding or votes entitled to be cast; and
    2. If the shares or members of any class are entitled to vote as a class, the designation in number of outstanding shares or memberships or votes entitled to be cast by each class; and
  3. As to each association:
    1. The number of votes cast for and against the plan, respectively; and
    2. If any shares of any class of stock are entitled to vote as a class, the number of shares or votes of each class voted for and against the plan, respectively.

History. Acts 1981, No. 121, § 5; 1983, No. 163, § 5; A.S.A. 1947, § 77-1031.

2-2-307. Effect of merger or consolidation.

  1. The merger or consolidation shall become effective upon the filing in accordance with this subchapter of articles of merger or consolidation or at a time not more than sixty (60) days after the filing, as may be specified in the articles as the time when the merger or consolidation shall become effective.
  2. When the merger or consolidation has been effected:
    1. The several associations party to the plan of merger or consolidation shall be a single association which, in the case of a merger, shall be that association designated in the plan of merger as the surviving association or, in the case of a consolidation, shall be the new association provided for in the plan of consolidation;
    2. Subject to this subchapter, the separate existence of all associations party to the plan of merger or consolidation, except the surviving or new association, shall cease;
    3. The surviving or new association shall have all the rights, privileges, immunities, and powers and shall be subject to all the duties and liabilities of an association organized under this subchapter;
      1. The surviving or new association shall possess all the rights, privileges, immunities, and franchises of a public as well as of a private nature of each of the merging or consolidating associations.
        1. All property, real, personal, and mixed, and all debts due on whatever account, including subscriptions to shares, and all other choses in action, and all and every other interest of or belonging to, or due to each of the associations so merged or consolidated, shall be taken and deemed to be transferred to and vested in the single association without further act or deed.
        2. The title to any real estate or any interest therein vested in any of the associations shall not revert or be in any way impaired by reason of the merger or consolidation;
      1. The surviving or new association shall be responsible and liable for all the liabilities and obligations of each of the associations so merged or consolidated.
      2. Any claim existing or action or proceeding pending by or against any of the associations may be prosecuted as if the merger or consolidation had not taken place or the surviving or new association may be substituted in its place.
      3. Neither the rights of creditors nor any liens upon the property of any association shall be impaired by the merger or consolidation; and
      1. In the case of a merger, the articles of incorporation of the surviving association shall be deemed to be amended to the extent, if any, that changes in its articles of incorporation are stated in the plan of merger.
      2. In the case of a consolidation, the statements set forth in the articles of consolidation which are required or permitted to be set forth in the articles of incorporation of associations organized under this subchapter shall be deemed to be the original articles of incorporation of the new association.

History. Acts 1981, No. 121, § 6; A.S.A. 1947, § 77-1032.

2-2-308. Merger or consolidation of domestic and foreign associations.

  1. One (1) or more foreign associations and one (1) or more domestic associations may be merged or consolidated in the following manner if the merger or consolidation is permitted by the laws of the state or country under which each foreign association is organized:
    1. Each domestic association shall comply with the provisions of this subchapter with respect to the merger or consolidation, as the case may be, of domestic associations. Each foreign association shall comply with the applicable provisions of the laws of the state or country under which it is organized; and
    2. If the surviving or new association, as the case may be, is to be governed by laws of any country or state other than this state, it shall comply with the laws of Arkansas with respect to the admission of foreign associations if it is to transact business in this state. Moreover, it shall file with the Secretary of State of this state an irrevocable appointment of the Secretary of State as its agent to accept service of process in any proceeding.
    1. The effect of the merger or consolidation shall be the same as in the case of the merger or consolidation of domestic associations if the surviving or new association is to be governed by the laws of this state.
    2. If the surviving or new association is to be governed by the laws of any country or state other than this state, the effect of the merger or consolidation shall be the same as in the case of the merger or consolidation of domestic associations, except insofar as the laws of the other state provide otherwise.

History. Acts 1981, No. 121, § 7; A.S.A. 1947, § 77-1033.

2-2-309. Continuance of association existence for title transfers.

    1. The existence of each constituent association which has been dissolved through merger or consolidation shall be continued indefinitely without franchise tax liability for the limited purpose of enabling the constituent association to execute through its own officers formal deeds, conveyances, assignments, and other instruments evidencing the transfer from the constituent to the surviving association or new association created by consolidation of any or all properties, real and personal, which have passed from the constituent to the surviving or consolidated association by operation of law.
    2. The execution of any instruments shall not be essential to effect the transfer of title from the constituent to the surviving or consolidated association, inasmuch as the transfer will take effect through operation of law, but the power to execute the instruments is given to the end that it may be exercised:
      1. In respect to properties located in foreign jurisdictions which may not recognize a transmittal of title by operation of law under the merger and consolidation statutes of this state; and
      2. In any other situation where the directors of the surviving or consolidated association consider the execution of the instruments desirable.
    1. This state will recognize and give effect to a transfer of personal property having a situs in this state which is effected by operation of the laws of another state through a merger or consolidation at any time conducted under the laws of the other state.
      1. This state will recognize and give effect to a transfer of title to real estate located in this state effected by operation of law through a merger or consolidation conducted under laws of one (1) or more other states. This transfer shall be done on condition that a copy of the agreement of merger or consolidation, executed between the merging or consolidating associations and certified by the secretary of state of the state in which the surviving or consolidated association is domiciled, shall be filed for record with the Secretary of State of this state.
      2. The Secretary of State of this state shall receive the filing whether the surviving or consolidated association does or does not desire to be admitted to this state.

History. Acts 1981, No. 121, § 8; A.S.A. 1947, § 77-1034.

2-2-310. No approval for financial obligations — Exception.

  1. The board of directors shall not be required to procure any consent from or authorization by the members, except in the instance of the increase of bonded indebtedness of the association, in authorizing:
    1. The procurement of loans, the creation of obligations under which the association is to be primarily or secondarily liable, and the issuance of notes, bonds, and other obligations; and
    2. The mortgage and pledge of all or any part of the association's assets, including after-acquired property, as security for any obligations so incurred.
  2. Where the bonded indebtedness is increased within the meaning of Arkansas Constitution, Article 12, Section 8, authorization of both the creation of the additional indebtedness and the lien securing it shall be required in conformity with the constitutional provision.

History. Acts 1981, No. 121, § 9; A.S.A. 1947, § 77-1035.

2-2-311. Regular disposition of property.

The sale, lease, or exchange of all or substantially all of the property and assets of an association, when made in the usual and regular course of the business of the association, may be made upon such terms and conditions and for such considerations, which may consist in whole or in part of money or real or personal property, including shares of any other domestic or foreign association, as shall be authorized by its board of directors, and no authorization or consent of the members shall be required.

History. Acts 1981, No. 121, § 10; A.S.A. 1947, § 77-1036.

2-2-312. Disposition of property other than in regular course of business.

A sale, lease, or exchange of all or substantially all the property and assets, with or without the goodwill of an association, if not made in the usual and regular course of its business, may be made upon the terms and conditions and for consideration, which may consist in whole or in part of money or real or personal property, including shares of any other domestic or foreign association, as may be authorized in the following manner:

  1. The board of directors shall adopt a resolution recommending the sale, lease, or exchange and directing the submission thereof to a vote at a meeting of members, which may be either an annual or a special meeting;
  2. Written or printed notice shall be given to each member of record within the time and in the manner provided in this subchapter for the giving of notice of special meetings of members. Whether the meeting is an annual or a special meeting, the notice shall state that the purpose or one of the purposes of the meeting is to consider the proposed sale, lease, or exchange;
    1. At the meeting, the members may authorize the sale, lease, or exchange and may fix or may authorize the board to fix any or all of the terms and conditions thereof and the consideration to be received by the association.
    2. Each member of the association shall be entitled to vote thereon.
    3. The authorization shall require the affirmative vote of at least two-thirds (2/3) of the votes cast at the meeting in which members holding not less than fifty percent (50%) of the voting power of the association are represented in person or by proxy; and
  3. After the authorization by vote of members, the board, nevertheless, in its discretion may abandon the sale, lease, or exchange of assets, subject to the rights of third parties under any contracts relating thereto, without further action or approval by members.

History. Acts 1981, No. 121, § 11; 1983, No. 163, § 6; A.S.A. 1947, § 77-1037.

2-2-313. Rights of shareholders, members, and patrons.

  1. The merger or consolidation of an association under this subchapter shall constitute an assignment to the surviving or new association of all rights of any shareholder, member, or patron in the capital stock, patronage, or other interests in the association determined as of the effective date of the merger or consolidation.
  2. The shareholder, member, or patron in a merger, consolidation, sale, lease, or exchange of all or substantially all the property and assets of an association under this subchapter shall not be entitled to have the fair value of his or her capital stock, patronage, or other interests appraised as may otherwise be required by the general corporation laws of this state if:
    1. The surviving or new association in any merger or consolidation agrees to assume the obligations for the capital stock, patronage, or other interests of the merging or consolidating association, determined as of the effective date of the merger or consolidation, as may be provided under the bylaws or articles of association of the merging or consolidating association, or the association whose assets are sold or leased; or
    2. The acquiring association in any purchase or lease of all or substantially all of the property and assets of a transferring association pays consideration to the transferring association in cash or equity of the acquiring association, or both, the face value of which is equal to or greater than the face value of the issued and outstanding equity of the transferring association held by its shareholders, members, or patrons, determined as of the effective date of the sale or lease of assets.

History. Acts 1981, No. 121, § 12; A.S.A. 1947, § 77-1038; Acts 1991, No. 436, § 1.

Subchapter 4 — Marketing Associations

Effective Dates. Acts 1921, No. 116, § 30: Feb. 14, 1921. Emergency declared.

Acts 1937, No. 351, § 4: Mar. 25, 1937. Emergency declared.

Case Notes

Cited: Driver v. Producers Coop., 233 Ark. 334, 345 S.W.2d 16 (1961); Collie v. Little River Coop., 236 Ark. 725, 370 S.W.2d 62 (1963).

2-2-401. Title.

This subchapter shall be referred to as the “Cooperative Marketing Act”.

History. Acts 1921, No. 116, § 2; Pope's Dig., § 2287; A.S.A. 1947, § 77-902.

2-2-402. Purpose.

The purpose of this subchapter is to:

  1. Promote, foster, and encourage the intelligent and orderly marketing of agricultural products through cooperation and to eliminate speculation and waste;
  2. Make the distribution of agricultural products as direct as can be efficiently done between producer and consumer; and
  3. Stabilize the marketing problems of agricultural products.

History. Acts 1921, No. 116, § 1; Pope's Dig., § 2286; A.S.A. 1947, § 77-901.

2-2-403. Definitions.

  1. As used in this subchapter:
    1. “Agricultural products” means horticultural, viticultural, forestry, dairy, livestock, poultry, bee, and farm and ranch products;
    2. “Association” means any corporation organized under this subchapter;
    3. “Member” means actual members of associations without capital stock and holders of common stock in associations organized with capital stock; and
    4. “Person” means individuals, firms, partnerships, corporations, and associations.
  2. Associations organized under this subchapter shall be deemed nonprofit, inasmuch as they are not organized to make profits for themselves as such, or for their members as such, but only for their members as producers.

History. Acts 1921, No. 116, § 2; Pope's Dig., § 2287; A.S.A. 1947, § 77-902.

2-2-404. Who may organize.

Five (5) or more persons engaged in the production of agricultural products may form a nonprofit cooperative association, with or without capital stock, under the provisions of this subchapter.

History. Acts 1921, No. 116, § 3; Pope's Dig., § 2288; A.S.A. 1947, § 77-903.

2-2-405. Reasons for organizing.

An association may be organized to engage in any activity in connection with the marketing or selling of the agricultural products of its members or with the harvesting, preserving, drying, processing, canning, packing, ginning, compressing, storing, handling, shipping, or utilization thereof or the manufacturing or marketing of the by-products thereof; in connection with the manufacturing, selling, or supplying to its members of machinery, equipment, or supplies; in the financing of the enumerated activities; or in any one (1) or more of the activities specified in this subchapter.

History. Acts 1921, No. 116, § 4; Pope's Dig., § 2289; A.S.A. 1947, § 77-904.

2-2-406. Powers.

Each association incorporated under this subchapter shall have the following powers to:

    1. Engage in any activity in connection with the marketing, selling, harvesting, preserving, drying, processing, canning, packing, ginning, compressing, storing, handling, or utilization of any agricultural products produced or delivered to it by its members; the manufacturing or marketing of the by-products thereof; in connection with the purchase, hiring, or use by members of supplies, machinery, or equipment; in the financing of any such activities; or in any one (1) or more of the activities specified in this section.
    2. No association, however, shall handle the products of nonmembers to an extent greater than that handled for members;
  1. Borrow money and to make advances to members;
  2. Act as the agent or representative of any member in any of the mentioned activities;
  3. Purchase or otherwise acquire and to hold, own, and exercise all rights of ownership in, and to sell, transfer, or pledge shares of the capital stock or bonds of any corporation or association engaged in any related activity or in the handling or marketing of any of the products handled by the association;
  4. Establish reserves and to invest the funds thereof in bonds or such other property as may be provided in the bylaws;
  5. Buy, hold, and exercise all privileges of ownership over such real or personal property as may be necessary or convenient for the conducting and operation of any of the business of the association or incidental thereto; and
    1. Do each and every thing necessary, suitable, or proper for the accomplishment of any one (1) of the purposes or the attainment of any one (1) or more of the objects enumerated in this section or conducive to or expedient for the interest or benefit of the association, and to contract accordingly.
    2. In addition, to exercise and possess all powers, rights, and privileges necessary or incidental to the purposes for which the association is organized or to the activities in which it is engaged.
    3. In addition, to have any other rights, powers, and privileges granted by the laws of this state to ordinary corporations, except as are inconsistent with the express provisions of this subchapter, and to do any such thing anywhere.

History. Acts 1921, No. 116, § 6; 1937, No. 351, § 1; Pope's Dig., § 2291; A.S.A. 1947, § 77-906.

Case Notes

Future Delivery.

This section empowers cooperative marketing associations to make contracts for the sale and future delivery of agricultural products. Ark. Cotton Growers Coop. Ass'n v. Brown, 168 Ark. 504, 270 S.W. 946 (1925), supp. op., 168 Ark. 523, 270 S.W. 1119 (1925).

Limits on Authority.

Association had no right to sell rough rice without pooling it or to sell rice on commission. McCauley v. Ark. Rice Growers Coop. Ass'n, 171 Ark. 1155, 287 S.W. 419 (1926).

Management of Funds.

Directors of cooperative marketing association organized under this chapter abused their discretion in failing to develop and maintain a rational balance between amounts paid preferred stockholders and active members and in failing to provide, maintain, and build the allocated reserve required by the articles of incorporation where action of board in effect denied owners of preferred stock assurance that their stock would be redeemed as provided in articles of incorporation while affording active members a profitable return. Collie v. Little River Coop., 236 Ark. 725, 370 S.W.2d 62 (1963).

2-2-407. Members.

  1. Under the terms and conditions prescribed in its bylaws, an association may admit as members, or issue common stock only to, persons engaged in the production of the agricultural products to be handled by or through the association, including the lessees and tenants of land used for the production of agricultural products and any lessors and landlords who receive as rent part of the crop raised on the leased premises.
  2. If a member of a nonstock association is other than a natural person, the member may be represented by any individual, associate, officer, or member thereof, duly authorized in writing.
  3. An association organized under this subchapter may become a member or stockholder of any other association organized under this subchapter.

History. Acts 1921, No. 116, § 7; Pope's Dig., § 2292; A.S.A. 1947, § 77-907.

2-2-408. Articles of incorporation.

  1. Each association formed under this subchapter must prepare and file articles of incorporation setting forth:
    1. The name of the association;
    2. The purposes for which it is formed;
    3. The place where its principal business will be transacted;
    4. The term for which it is to exist, not exceeding fifty (50) years;
      1. The number of directors, which must be not fewer than five (5) and may be any number in excess thereof; and
      2. The term of office of the directors;
        1. If organized without capital stock, whether the property rights and interest of each member shall be equal or unequal.
        2. If unequal, the articles shall set forth the general rules applicable to all members by which the property rights and interests, respectively, of each member may and shall be determined and fixed.
      1. The association shall have the power to admit new members who shall be entitled to share in the property of the association with the old members, in accordance with the general rules.
      2. This provision of the articles of incorporation shall not be altered, amended, or repealed except by the written consent of the vote of three-fourths (¾) of the members; and
      1. If organized with capital stock, the amount of the stock and the number of shares into which it is divided and the par value thereof.
        1. The capital stock may be divided into preferred and common stock.
        2. If so divided, the articles of incorporation must contain a statement of the number of shares of stock to which preference is granted, the number of shares of stock to which no preference is granted, and the nature and extent of the preference and privileges granted to each.
    1. The articles must be subscribed by the incorporators and acknowledged by one (1) of them before an officer authorized by the law of this state to take and certify acknowledgment of deeds and conveyances.
      1. They shall be filed in accordance with the provisions of the general corporation law of this state.
      2. When so filed, the articles of incorporation or certified copies shall be received in all the courts of this state and other places as prima facie evidence of the facts contained therein and of the due incorporation of the association.
    2. A certified copy of the articles of incorporation shall also be filed with the Dean of the College of Agriculture of the University of Arkansas at Fayetteville and the Secretary of State.

History. Acts 1921, No. 116, § 8; Pope's Dig., § 2293; A.S.A. 1947, § 77-908.

Cross References. Business Corporation Act of 1987, § 4-27-101 et seq.

2-2-409. Amendments to articles.

  1. The articles of incorporation may be altered or amended at any regular meeting or at any special meeting called for that purpose.
  2. Amendments to the articles of incorporation when so adopted shall be certified to by the president and secretary of the association and shall be filed with the Secretary of State.

History. Acts 1921, No. 116, § 9; Pope's Dig., § 2294; Acts 1961, No. 470, § 1; A.S.A. 1947, § 77-909.

2-2-410. Filing fees.

For filing articles of incorporation, an association organized under this subchapter shall pay five dollars ($5.00), and for filing an amendment to the articles, it shall pay two dollars and fifty cents ($2.50).

History. Acts 1921, No. 116, § 29; 1937, No. 351, § 3; Pope's Dig., § 2314; A.S.A. 1947, § 77-928.

2-2-411. Bylaws.

  1. Within thirty (30) days after its incorporation, each association incorporated under this subchapter must adopt a code of bylaws, not inconsistent with the powers granted by this subchapter, for its government and management.
  2. Each association under its bylaws may also provide for any or all of the following matters:
    1. The time, place, and manner of calling and conducting its meetings;
    2. The number of stockholders or members constituting a quorum;
    3. The right of members or stockholders to vote by proxy or by mail or by both, and the conditions, manner, form, and effect of these votes;
    4. The number of directors constituting a quorum;
    5. The qualifications, compensation, duties, and term of office of directors and officers; time of their election; and the mode and manner of giving notice thereof;
    6. Penalties for violations of the bylaws;
    7. The amount of entrance, organization, and membership fees, if any; the manner and method of collection of the fees; and the purposes for which they may be used;
      1. The amount which each member or stockholder shall be required to pay annually or from time to time, if at all, to carry on the business of the association;
      2. The charge, if any, to be paid by each member or stockholder for services rendered by the association to him or her and the time of payment and the manner of collection; and
      3. The marketing contract between the association and its members or stockholders, which every member or stockholder may be required to sign; and
      1. The number and qualification of members or stockholders of the association and the conditions precedent to membership or ownership of common stock;
      2. The method, time, and manner of permitting members to withdraw or the holders of common stock to transfer their stock;
      3. The manner of assignment and transfer of the interest of members and the shares of common stock;
      4. The conditions upon which the membership of any member shall cease;
      5. The automatic suspension of the rights of a member when he or she ceases to be eligible for membership in the association and the mode, manner, and effect of the expulsion of a member; and
        1. The manner of determining the value of a member's interest and provision for its purchase by the association upon the death or withdrawal of a member or stockholder or upon the expulsion of a member or forfeiture of his or her membership or, at the option of the association, by a conclusive appraisal by the board of directors.
        2. In case of withdrawal or expulsion of a member, the board of directors shall equitably and conclusively appraise his or her property interests in the association and shall fix the amount thereof in money, which shall be paid to him or her within one (1) year after the expulsion or withdrawal.

History. Acts 1921, No. 116, § 10; Pope's Dig., § 2295; Acts 1961, No. 470, § 2; A.S.A. 1947, § 77-910.

2-2-412. [Repealed.]

Publisher's Notes. This section, concerning amendment of articles or bylaws, was repealed by Acts 1987, No. 507, § 1. The section was derived from Acts 1961, No. 470, § 3; A.S.A. 1947, § 77-910.1.

2-2-413. Regular and special meetings.

  1. In its bylaws, each association shall provide for one (1) or more regular meetings annually.
    1. The board of directors shall have the right to call a special meeting at any time, and ten percent (10%) of the members or stockholders may file a petition stating the specific business to be brought before the association and demand a special meeting at any time.
    2. This meeting must be called by the directors.
    1. Notice of all meetings together with a statement of the purposes thereof shall be mailed to each member at least ten (10) days before the meeting.
    2. The bylaws may require instead that the notice may be given by publication in a newspaper of general circulation published at the principal place of business of the association.

History. Acts 1921, No. 116, § 11; Pope's Dig., § 2296; A.S.A. 1947, § 77-911.

2-2-414. Board of directors.

    1. The affairs of the association shall be managed by a board of not less than five (5) directors elected by the members or stockholders from their own number.
        1. The bylaws may provide that the territory in which the association has members shall be divided into districts and that the directors shall be elected according to the districts.
        2. In this case, the bylaws shall specify the number of directors to be elected by each district and the manner and method of reapportioning the directors and of redistricting the territory covered by the association.
      1. The bylaws may provide that primary elections should be held in each district to elect the directors apportioned to the districts, and the result of all the primary elections must be ratified by the next regular meeting of the association.
    1. The bylaws may provide that one (1) or more directors may be appointed by the Dean of the College of Agriculture of the University of Arkansas at Fayetteville or by the Secretary of State or any other public official or commission.
    2. The directors so appointed need not be members or stockholders of the association but shall have the same powers and rights as other directors.
    1. An association may provide a fair remuneration for the time actually spent by its officers and directors in its service.
    2. No director during the term of his or her office shall be a party to a contract for profit with the association differing in any way from the business relations accorded regular members or holders of common stock of the association or to any other kind of contract differing from terms generally current in that district.
    1. When a vacancy on the board of directors occurs other than by expiration of term, the remaining members of the board, by a majority vote, shall fill the vacancy unless the bylaws provide for an election of directors by district.
    2. In that case, the board shall immediately call a special meeting of the members or stockholders in that district to fill the vacancy.

History. Acts 1921, No. 116, § 12; Pope's Dig., § 2297; A.S.A. 1947, § 77-912.

2-2-415. Officers.

  1. The board of directors shall elect from their number a president and one (1) or more vice presidents.
    1. They shall also elect a secretary and treasurer, who need not be directors, and they may combine the two (2) latter offices and designate the combined office as secretary-treasurer.
      1. The treasurer may be a bank or any depository, and as such shall not be considered as an officer but as a functionary of the board of directors.
      2. In such case, the secretary shall perform the usual accounting duties of the treasurer, excepting that the funds shall be deposited only as authorized by the board.

History. Acts 1921, No. 116, § 13; Pope's Dig., § 2298; A.S.A. 1947, § 77-913.

2-2-416. Removal of officer or director.

    1. Any member may bring charges against an officer or director by filing the charges in writing with the secretary of the association, together with a petition signed by ten percent (10%) of the members, requesting the removal of the officer or director in question.
    2. The removal shall be voted upon at the next regular or special meeting of the association, and by a vote of a majority of the members the association may remove the officer or director and fill the vacancy.
      1. The director or officer against whom the charges have been brought shall be informed in writing of the charges previous to the meeting and shall have an opportunity at the meeting to be heard in person or by counsel and to present witnesses; and
      2. The person or persons bringing the charges against him or her shall have the same opportunity.
    1. In case the bylaws provide for election of directors by districts with primary elections in each district, then the petition for removal of a director must be signed by twenty percent (20%) of the members residing in the district from which he or she was elected.
    2. The board of directors must call a special meeting of the members residing in that district to consider the removal of the director.
    3. By a vote of the majority of the members of that district, the director in question shall be removed from office.

History. Acts 1921, No. 116, § 15; Pope's Dig., § 2300; A.S.A. 1947, § 77-915.

2-2-417. Certificates of membership or stock ownership.

  1. When a member of an association established without capital stock has paid his or her membership fee in full, he or she shall receive a certificate of membership.
      1. No association shall issue stock to a member until the stock has been fully paid for.
      2. The promissory notes of the members may be accepted by the association as full or partial payment.
    1. The association shall hold the stock as security for the payment of the note, but such retention as security shall not affect the member's right to vote.
  2. Except for debts lawfully contracted between him or her and the association, no member shall be liable for the debts of the association to an amount exceeding the sum remaining unpaid on his or her membership fee or his or her subscription to the capital stock, including any unpaid balances on any promissory notes given in payment thereof.
    1. No stockholder of a cooperative association shall own more than one-twentieth (1/20) of the common stock of the association.
    2. An association in its bylaws may limit the amount of common stock which one (1) member may own to any amount less than one-twentieth (1/20) of the common stock.
  3. No member or stockholder shall be entitled to more than one (1) vote.
    1. Any association organized with stock under this subchapter may issue preferred stock, with or without the right to vote.
    2. The stock may be redeemable or retirable by the association on such terms and conditions as may be provided for by the articles of incorporation and printed on the face of each certificate.
  4. The bylaws shall prohibit the transfer of the common stock of the association to persons not engaged in the production of the agricultural products handled by the association, and the restriction must be printed upon every certificate of stock subject thereto.
  5. At any time except when the debts of the association exceed fifty percent (50%) of its assets, the association may buy in or purchase its common stock at book value as conclusively determined by the board of directors and pay for it in cash within one (1) year thereafter.

History. Acts 1921, No. 116, § 14; Pope's Dig., § 2299; A.S.A. 1947, § 77-914.

2-2-418. Matters referred to entire membership.

Upon demand of one-third (1/3) of the entire board of directors, any matter that has been approved or passed by the board must be referred to the entire membership or the stockholders for decision at the next special or regular meeting. A special meeting may be called for that purpose.

History. Acts 1921, No. 116, § 16; Pope's Dig., § 2301; A.S.A. 1947, § 77-916.

2-2-419. Marketing contracts — Remedies.

    1. The association and its members may make and execute marketing contracts requiring the members to sell, for any period of time not over ten (10) years, all or any specified part of their agricultural products or specified commodities exclusively to or through the association or any facilities to be created by the association.
    2. The contract may provide that the association may sell or resell the products of its members with or without taking title thereto and pay over to its members the resale price after deducting all necessary selling, overhead, and other costs and expenses, including:
      1. Interest on preferred stock, not exceeding eight percent (8%) per annum;
      2. Reserves for retiring the stocks, if any;
      3. Other proper reserves; and
      4. Interest not exceeding eight percent (8%) per annum upon common stock.
  1. The bylaws and the marketing contract may fix, as liquidated damages, specific sums to be paid by the member or stockholder to the association upon the breach by him or her of any provision of the marketing contract regarding the sale or delivery or withholding of products. They may further provide that the member will pay all costs, premiums for bonds, expenses, and fees in case any action is brought upon the contract by the association. Any such provision shall be valid and enforceable in the courts of this state.
    1. In the event of any breach or threatened breach of the marketing contract by a member, the association shall be entitled to an injunction to prevent the further breach of the contract and to a decree of specific performance thereof.
    2. Pending the adjudication of an action and upon filing a verified complaint showing the breach or threatened breach and upon filing a sufficient bond, the association shall be entitled to a temporary restraining order and preliminary injunction against the member.

History. Acts 1921, No. 116, § 17; Pope's Dig., § 2302; A.S.A. 1947, § 77-917.

Case Notes

Constitutionality.

This section is not invalid as an attempt to enlarge the jurisdiction of the chancery court. Ark. Cotton Growers Coop. Ass'n v. Brown, 168 Ark. 504, 270 S.W. 946 (1925), supp. op., 168 Ark. 523, 270 S.W. 1119 (1925).

Breach of Contract.

The fact that officers of association breached the contract in certain respects did not absolve members from carrying out their contracts. McCauley v. Ark. Rice Growers Coop. Ass'n, 171 Ark. 1155, 287 S.W. 419 (1926).

Cited: Hardy Constr. Co. v. Ark. State Hwy. & Transp. Dep't, 324 Ark. 496, 922 S.W.2d 705 (1996).

2-2-420. Penalties for inducing breach of contract.

Any person or corporation whose officers or employees knowingly induce or attempt to induce any member or stockholder of an association organized under this subchapter to breach his or her marketing contract with the association or who maliciously and knowingly spread false reports about the finances or management of the association shall be guilty of a violation and subject to a fine of not less than one hundred dollars ($100) nor more than one thousand dollars ($1,000) for the offense and shall be liable to the association aggrieved in a civil suit in the penal sum of five hundred dollars ($500) for each offense.

History. Acts 1921, No. 116, § 24; Pope's Dig., § 2309; A.S.A. 1947, § 77-924; Acts 2005, No. 1994, § 4.

Amendments. The 2005 amendment substituted “violation” for “misdemeanor”.

Case Notes

Elements of Offense.

To render one purchasing rice from a member of a cooperative marketing association liable for a penalty prescribed in this section, it must appear the defendant knowingly induced the member to sell rice which he or she had no right to sell under the marketing contract. Loewer v. Ark. Rice Growers' Coop. Ass'n, 180 Ark. 484, 22 S.W.2d 17 (1929).

2-2-421. Exchange of shares for acquired interests.

Whenever an association organized under this subchapter with preferred capital stock shall purchase the stock or any property or any interest in any property of any person, firm, corporation, or association, it may discharge the obligations so incurred, wholly or in part, by exchanging for the acquired interest shares of its preferred capital stock to an amount which at par value would equal a fair market value of the stock or interest so purchased, as determined by the board of directors. In that case, the transfer to the association of the stock or interest purchased shall be equivalent to payment in cash for the shares of stock issued.

History. Acts 1921, No. 116, § 18; Pope's Dig., § 2303; A.S.A. 1947, § 77-918.

2-2-422. Annual report.

Each association formed under this subchapter shall prepare and make out an annual report on forms furnished by the Secretary of State and the College of Agriculture of the University of Arkansas at Fayetteville, containing:

  1. The name of the association;
  2. Its principal place of business; and
  3. A general statement of its business operations during the fiscal year, showing:
      1. The amount of capital stock paid up and the number of stockholders of a stock association; or
      2. The number of members and amount of membership fees received if a nonstock association;
    1. The total expenses of operations;
    2. The amount of its indebtedness or liability; and
    3. Its balance sheets.

History. Acts 1921, No. 116, § 19; Pope's Dig., § 2304; A.S.A. 1947, § 77-919.

2-2-423. Interest in other corporations.

  1. An association may organize, form, operate, own, control, have an interest in, own stock of, or be a member of any other corporation, with or without capital stock; and engage in preserving, drying, processing, canning, packing, ginning, compressing, storing, handling, shipping, utilizing, manufacturing, marketing, or selling of agricultural products handled by the association, or the by-products thereof.
    1. If the corporations are warehousing corporations, they may issue legal warehouse receipts to the association or to any other person and the legal warehouse receipts shall be considered as adequate collateral to the extent of the current value of the commodity represented.
    2. In case the warehouse is licensed or licensed and bonded under the laws of this state or the United States, its warehouse receipt shall not be challenged or discriminated against because of ownership or control, wholly or in part, by the association.

History. Acts 1921, No. 116, § 21; Pope's Dig., § 2306; A.S.A. 1947, § 77-921.

2-2-424. Agreements with other associations.

  1. Upon resolution adopted by its board of directors, any association may enter into all necessary and proper contracts and agreements and make all necessary and proper stipulations, agreements, contracts, and arrangements with any other cooperative corporation or association formed in this or any other state for the cooperative and more economical carrying on of its business or any part thereof.
  2. By agreement between them, any two (2) or more associations may unite in employing and using or may separately employ and use the same methods, means, and agencies for carrying on and conducting their respective businesses.

History. Acts 1921, No. 116, § 22; Pope's Dig., § 2307; A.S.A. 1947, § 77-922.

2-2-425. Existing entities may participate.

    1. By a majority vote of its stockholders or members, any corporation or association organized under previous existing statutes may be brought under the provisions of this subchapter by limiting its membership and adopting the other restrictions as provided in this subchapter.
    2. It shall make out in duplicate a statement signed and sworn to by its directors upon forms supplied by the Secretary of State to the effect that the corporation or association has by a majority vote of its stockholders or members decided to accept the benefits and be bound by the provisions of this subchapter.
    3. Articles of incorporation shall be filed as required in § 2-2-408, except that they shall be signed by the members of the board of directors.
  1. The filing fee shall be the same as for filing an amendment to articles of incorporation.

History. Acts 1921, No. 116, § 23; Pope's Dig., § 2308; A.S.A. 1947, § 77-923.

2-2-426. Arrangements not in restraint of trade.

No association organized under this subchapter shall be deemed to be a combination in restraint of trade or an illegal monopoly or an attempt to lessen competition or fix prices arbitrarily. The marketing contracts or agreements between the association and its members or any agreements authorized in this subchapter are not illegal or in restraint of trade.

History. Acts 1921, No. 116, § 25; Pope's Dig., § 2310; A.S.A. 1947, § 77-925.

2-2-427. Tax exemption.

Each association organized under this subchapter shall be exempt from all franchise or license taxes.

History. Acts 1921, No. 116, § 28; 1937, No. 351, § 2; Pope's Dig., § 2313; A.S.A. 1947, § 77-927.

2-2-428. General corporation laws.

The provisions of the general corporation laws of this state and all powers and rights thereunder shall apply to the associations organized under this subchapter, except where the provisions are in conflict with or inconsistent with the express provisions of this subchapter.

History. Acts 1921, No. 116, § 27; Pope's Dig., § 2312; A.S.A. 1947, § 77-926.

Cross References. Business Corporation Act of 1987, § 4-27-101 et seq.

Case Notes

Venue.

Corporation laws apply to agricultural cooperative associations, and thus venue is proper in either the county in which the association's principal place of business is located or in the county in which one of its branch offices is located. Two Bros. Farm v. Riceland Foods, Inc., 57 Ark. App. 25, 940 S.W.2d 889 (1997).

2-2-429. Conflicting laws.

Any provisions of law which are in conflict with this subchapter shall not be construed as applying to the associations provided for in this subchapter.

History. Acts 1921, No. 116, § 20; Pope's Dig., § 2305; A.S.A. 1947, § 77-920.

2-2-430. Conversion to nonprofit corporate status.

  1. An association formed under this subchapter may elect to be governed by the provisions of the Arkansas Nonprofit Corporation Act of 1993, § 4-33-101 et seq., by amending and restating its articles of incorporation to provide that it shall be so governed.
  2. The election shall be approved upon receiving the affirmative vote of at least two-thirds (2/3) of the votes cast at any regular meeting, or at any special meeting called for that purpose, in which members holding not less than fifty percent (50%) of the voting power of the association are represented in person or by proxy, but the election once made shall be irrevocable.
  3. The amended and restated articles of incorporation shall comply with and shall be filed under the provisions of the Arkansas Nonprofit Corporation Act of 1993, § 4-33-101 et seq., and thereafter the association shall be governed by the Arkansas Nonprofit Corporation Act of 1993, § 4-33-101 et seq.

History. Acts 1997, No. 521, § 1.

Chapter 3 Arkansas Agricultural Foreign Investment

Effective Dates. Acts 1979, No. 1096, § 14: Apr. 19, 1979. Emergency clause provided: “It has been found and is hereby declared that a record should be kept of the acquisition by foreign parties of Arkansas agricultural land since such acquisition may constitute an undesirable foreign influence upon the people of this state and the welfare of its people and may contribute to the deterioration of the family farm system and the rural community and may result in abuse to Arkansas farm land through improper conservation measures. Therefore, an emergency is hereby declared to exist and this act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after its passage and approval.”

Research References

U. Ark. Little Rock L.J.

DeSimone, Survey of Property Law, 3 U. Ark. Little Rock L.J. 286.

2-3-101. Title.

This chapter may be cited as the “Arkansas Agricultural Foreign Investment Act”.

History. Acts 1979, No. 1096, § 1; A.S.A. 1947, § 77-2201.

2-3-102. Definitions.

As used in this chapter, unless the context otherwise requires:

  1. “Agricultural land” means any Arkansas land which is outside the corporate limits of a municipality and is used or capable, without substantial modification to the character of the land, of use for agricultural, forestry, or timber production, but does not include oil, gas, and all other minerals, including coal, lignite, brine, and all minerals known and recognized as commercial minerals underlying the land;
  2. “Foreign government” means any government other than the federal government or any government of a state or a political subdivision of a state;
  3. “Foreign party” means:
    1. Any individual who is not a citizen of the United States and who is not a resident of some state, territory, or possession of the United States;
    2. Any foreign government;
    3. Any party, other than an individual or a government, which is created or organized under the laws of a foreign government or which has its principal place of business located outside the United States;
    4. Any party other than an individual or a government:
      1. Which is created or organized under the laws of any state; and
      2. In which a significant interest is directly or indirectly held or in which not insubstantial control is directly or indirectly held or is capable of being exercised by:
        1. Any individual referred to in subdivision (3)(A) of this section;
        2. Any foreign government;
        3. Any party referred to in subdivision (3)(C) of this section;
        4. Any combination of such individuals, parties, or government; and
    5. Any agent, trustee, or other fiduciary of a person or entity enumerated in this subdivision (3); and
  4. “Party” means any individual, corporation, company, association, firm, partnership, society, joint-stock company, trust, estate, or any other legal entity.

History. Acts 1979, No. 1096, § 2; A.S.A. 1947, § 77-2202.

2-3-103. Registration of foreign interest in agricultural land.

      1. When after April 19, 1979, any foreign party acquires any interest in agricultural land in Arkansas by grant, purchase, adverse possession, devise, descent, or in any other manner or any agent, trustee, or fiduciary acquires title to agricultural land in Arkansas on behalf of a foreign party, the foreign party or agent, trustee, or fiduciary shall register the ownership in the office of the circuit clerk in the county in which the land is located within sixty (60) days after the acquisition.
      2. The registration shall include a description of the agricultural lands acquired and the name and business address of the foreign party which acquired the lands or in whose behalf the lands were acquired.
    1. When the acquisition of lands by a foreign party is registered with the circuit clerk as required in this section, the clerk shall record the acquisition in an appropriate foreign land ownership record book to be maintained by him or her. The clerk shall forthwith remit a copy of the registration to the Secretary of State, who shall likewise maintain a record of all registrations made under the provisions of this chapter.
  1. Any foreign party who obtains a lease of agricultural land for a term of ten (10) years or longer or a lease renewable by option for terms which, if the options were all exercised, would total ten (10) years shall be deemed to have acquired agricultural land within the meaning of this chapter.
  2. Any party who acquires or holds any interest in agricultural land in violation of this chapter shall continue to violate this chapter for as long as he or she holds an interest in the land.
  3. Nothing in this chapter shall prevent a foreign party holding a lien or other interest in agricultural land before April 19, 1979, from taking a valid title to the land by the enforcement of the lien or other existing interest, but any such interest shall be registered as required in this chapter.

History. Acts 1979, No. 1096, § 3; A.S.A. 1947, § 77-2203.

2-3-104. Right to security interests.

Any foreign party shall have the right to make loans of money and to take and accept mortgages or other security interests upon agricultural land in Arkansas to secure the payment of loans. The foreign party may acquire fee ownership of the land upon a foreclosure or other legal enforcement of the security interest, provided the foreign party acquiring ownership registers the ownership as required in this chapter.

History. Acts 1979, No. 1096, § 4; A.S.A. 1947, § 77-2204.

2-3-105. Land acquired by lien.

  1. Any foreign party who acquires agricultural land by enforcement of a lien resulting from a transaction occurring after April 19, 1979, shall, within sixty (60) days of the acquisition, register the ownership as required in this chapter.
  2. In the event of failure to register as required in this chapter, proceedings under § 2-3-106 or § 2-3-107 shall be commenced.

History. Acts 1979, No. 1096, § 11; A.S.A. 1947, § 77-2211.

2-3-106. Proceedings upon failure to register.

  1. Any recorder of deeds, tax assessor, or other public official who shall learn that a foreign party has acquired agricultural land in Arkansas after April 19, 1979, and has not registered as required in this chapter or otherwise holds agricultural land in violation of this chapter shall report the violation to the Attorney General.
    1. Upon receiving notice under subsection (a) of this section, or otherwise in his or her discretion, the Attorney General shall institute an action in the Pulaski County Circuit Court or in the circuit court of any county in which any portion of the agricultural land acquired or held in violation of § 2-3-103 is located.
    2. The Attorney General shall file a notice of the pendency of the action with the recorder of deeds of each county in which any portion of the agricultural land is located.
    1. If the court finds that the agricultural land has been acquired or is held in violation of this chapter, the court shall enter a declaratory judgment of the violation and order that the agricultural land be divested to a party other than another foreign party within two (2) years of the date of the order.
      1. The court may also assess against the foreign party a civil penalty for a knowing violation of this chapter of up to twenty-five percent (25%) of the then fair market value of the agricultural land.
      2. The penalty assessed shall become a lien against the agricultural land.
    1. Upon the entry of a declaratory judgment of a violation and an order of divestiture, the Attorney General shall cause a copy of the order to be filed with the recorder of deeds of each county in which any portion of the agricultural land is located.
      1. The order of divestiture shall be a covenant running with the agricultural land against any foreign party, grantee, or assignee.
      2. Any foreign party who shall acquire any portion of the agricultural land within the two-year divestiture period specified in the order shall be required to divest within the two-year period.
  2. Any agricultural land which is not divested within the time prescribed by an order under subsection (c) of this section shall be ordered sold at public sale in the manner prescribed by law for the foreclosure of a mortgage on real estate for default in payment.

History. Acts 1979, No. 1096, § 5; A.S.A. 1947, § 77-2205; Acts 2005, No. 1962, § 2.

Publisher's Notes. Pursuant to § 14-14-1301, the clerk of the circuit court is ex officio recorder.

Amendments. The 2005 amendment, in (b)(1) inserted “or her”, substituted “Pulaski County Circuit Court” for “Circuit Court or Chancery Court of Pulaski County”, and deleted “or chancery” following “circuit”.

2-3-107. Private right of enforcement.

If the Attorney General refuses to bring an action provided for or authorized by this chapter, any person claiming a violation therefor, upon notice to the Attorney General, may apply to the court for leave to bring the action in his or her own name and may bring the action if leave therefor is granted.

History. Acts 1979, No. 1096, § 6; A.S.A. 1947, § 77-2206.

2-3-108. Exceptions generally.

  1. This chapter shall not apply to agricultural land owned by a foreign party on April 19, 1979, while the land is held by the foreign party, nor shall this chapter apply to any alien while a bona fide resident of the United States or one of its territories or possessions.
  2. Should any alien owning agricultural land in Arkansas cease to be a bona fide resident of the United States or one of its territories or possessions, the alien shall register as required in this chapter within two (2) years after ceasing to be a bona fide resident.
  3. Agricultural land held by a nonresident alien over two (2) years after ceasing to be a resident alien shall be subject to the proceedings set forth in §§ 2-3-106 and 2-3-107.

History. Acts 1979, No. 1096, § 7; A.S.A. 1947, § 77-2207.

2-3-109. Rights in nonfarm lands.

Except as provided in this chapter, all aliens, whether or not residents of the United States, shall be capable of acquiring by grant, purchase, adverse possession, devise, or descent any interest in any real estate except agricultural land, as defined in § 2-3-102, and of owning, holding, devising, or alienating it and shall incur the like duties and liabilities in relation thereto as if they were citizens of the United States and residents of Arkansas.

History. Acts 1979, No. 1096, § 9; A.S.A. 1947, § 77-2209.

2-3-110. Agricultural land used for nonfarming purposes and mineral leases.

  1. The restrictions set forth in this chapter do not apply to agricultural land acquired by a foreign party for immediate or potential use for nonfarming purposes.
  2. A foreign party who acquires agricultural land for nonfarming purposes shall not be required to make a filing or report under this chapter.
    1. A foreign party who acquires agricultural land under subsection (a) of this section and later uses the agricultural land for farming purposes shall register as required in this chapter within sixty (60) days of the change in use.
    2. Failure to register ownership for the use of agricultural land for farming purposes under subdivision (c)(1) of this section shall be subject to actions as provided in §§ 2-3-106 and 2-3-107.
  3. The restrictions set forth in this chapter do not apply and no reporting requirement attaches to leases or other conveyances granting the right to explore for and produce the oil, gas, and all other minerals, including coal, lignite, brine, and all minerals known and recognized as commercial minerals underlying the land, and oil, gas, coal, lignite, brine, and other mineral or royalty interests regardless of type or duration, easements, or tracts of land reasonably necessary for the extraction of oil, gas, and all other minerals, including coal, lignite, brine, and all minerals known and recognized as commercial minerals underlying the land.

History. Acts 1979, No. 1096, § 10; A.S.A. 1947, § 77-2210; Acts 2009, No. 643, §§ 1, 2.

A.C.R.C. Notes. Acts 2009, No. 643, § 2, provided: “This act applies retroactively to April 19, 1979.”

Amendments. The 2009 amendment, in (b), deleted (b)(2), which read: “The filings shall be made within sixty (60) days of the date of transfer of title to the land”, redesignated the remaining text, and substituted “not be required to make a filing or report under this chapter” for “file with the Secretary of State a declaration of intent as to the intended use of the land, the foreign party's identity, and a legal description of the land acquired”; rewrote (c); and made minor stylistic changes.

Chapter 4 Agricultural Operations As Nuisances

Effective Dates. Acts 1981, No. 301, § 10: Mar. 3, 1981. Emergency clause provided: “It is hereby found and determined by the General Assembly that under certain circumstances, an agricultural facility or the operation thereof may be declared a nuisance as a result of change in conditions in the area around the facility occurring after the facility has been in operation for a long period of time; that to permit any such facility which was not a nuisance when established to be declared a nuisance and forced to cease operations because of change in conditions in the locality and after the facility has been in operation for a long period of time is not only unfair to the owners, operators and employees of such plant but is highly detrimental to the economic growth and development of the state; that this act is designed to correct this situation and at the same time to protect the public health and preserve individual rights. Therefore, an emergency is hereby declared to exist and this act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after its passage and approval.”

Research References

Ark. L. Notes.

Malone, Farmland Preservation, 1985 Ark. L. Notes 73.

Ark. L. Rev.

Noble and Looney, The Emerging Legal Framework for Animal Agricultural Waste Management in Arkansas, 47 Ark. L. Rev. 159.

U. Ark. Little Rock L.J.

Legislative Survey, Property, 4 U. Ark. Little Rock L.J. 607.

2-4-101. Purpose.

It is the declared policy of the state to conserve, protect, and encourage the development and improvement of its agricultural and forest lands and other facilities for the production of food, fiber, and other agricultural and silvicultural products. When nonagricultural land uses extend into agricultural areas, agricultural operations often become the subject of nuisance suits. As a result, agricultural operations are sometimes forced to cease operations. Many are discouraged from making investments in farm or other agricultural improvements. It is the purpose of this chapter to reduce the loss to the state of its agricultural resources by limiting the circumstances under which agricultural operations may be deemed to be a nuisance.

History. Acts 1981, No. 301, § 1; A.S.A. 1947, § 34-120; Acts 2005, No. 2257, § 1.

Amendments. The 2005 amendment substituted “and forest lands” for “land” and “fiber, and other agricultural and silvicultural” for “and other agricultural” in the first sentence.

Research References

U. Ark. Little Rock L. Rev.

Kristin Titley, Note: Environmental Law—Regulation of Concentrated Animal Feeding Operations—Reducing the Nuisance: How Arkansas Can Use Its Right-to-Farm Statute to Protect Against the Destruction of CAFOs, 37 U. Ark. Little Rock L. Rev. 495 (2015).

2-4-102. Definitions.

As used in this chapter:

  1. “Agricultural operation” or “farming operation” means an agricultural, silvicultural, or aquacultural facility or pursuit conducted, in whole or in part, including:
    1. The care and production of livestock and livestock products, poultry and poultry products, apiary products, and plant and animal production for nonfood uses;
    2. The planting, cultivating, harvesting, and processing of crops and timber; and
    3. The production of any plant or animal species in a controlled freshwater or saltwater environment; and
  2. “Agriculture” includes agriculture, silviculture, and aquaculture.

History. Acts 1981, No. 301, § 2; A.S.A. 1947, § 34-121; Acts 2005, No. 2257, § 2.

Publisher's Notes. As passed, Acts 2005, No. 2257, contained two sections designated as subdivision 2.

Amendments. The 2005 amendment rewrote this section.

Research References

U. Ark. Little Rock L. Rev.

Kristin Titley, Note: Environmental Law—Regulation of Concentrated Animal Feeding Operations—Reducing the Nuisance: How Arkansas Can Use Its Right-to-Farm Statute to Protect Against the Destruction of CAFOs, 37 U. Ark. Little Rock L. Rev. 495 (2015).

2-4-103. Applicability to contracts.

This chapter shall not be construed to invalidate any contracts heretofore made, but insofar as contracts are concerned shall be applicable only with respect to contracts and agreements made subsequent to March 3, 1981.

History. Acts 1981, No. 301, § 6; A.S.A. 1947, § 34-125.

2-4-104. [Repealed.]

Publisher's Notes. This section, concerning nonapplicability to certain agricultural facilities, was repealed by Acts 2005, No. 2257, § 3. The section was derived from Acts 1981, No. 301, § 7; A.S.A. 1947, § 34-126.

2-4-105. Local ordinances void.

Any and all ordinances adopted by any municipality or county in which an agricultural operation is located making or having the effect of making the agricultural operation or any agricultural facility or its appurtenances a nuisance or providing for an abatement of the agricultural operation or the agricultural facility or its appurtenances as a nuisance in the circumstances set forth in this chapter are void and shall have no force or effect.

History. Acts 1981, No. 301, § 5; A.S.A. 1947, § 34-124; Acts 2005, No. 2257, § 4.

Amendments. The 2005 amendment substituted “operation is” for “facility is” and “agricultural operation or any” for “operation of any”.

2-4-106. Actions for injuries or damages not affected.

The provisions of this chapter shall not affect or defeat the right of any person, firm, or corporation to recover damages for any injuries or damages sustained by them on account of any pollution of or change in the condition of the waters of any stream or on account of any overflow of the lands of any person, firm, or corporation.

History. Acts 1981, No. 301, § 4; A.S.A. 1947, § 34-123.

Research References

U. Ark. Little Rock L. Rev.

Kristin Titley, Note: Environmental Law—Regulation of Concentrated Animal Feeding Operations—Reducing the Nuisance: How Arkansas Can Use Its Right-to-Farm Statute to Protect Against the Destruction of CAFOs, 37 U. Ark. Little Rock L. Rev. 495 (2015).

2-4-107. Operation not to become nuisance.

  1. An agricultural operation or its facilities or appurtenances shall not be or become a public or private nuisance as a result of any changed conditions in and about the locality after it has been in operation for a period of one (1) year or more when the agricultural operation or its facilities or appurtenances were not a nuisance at the time the agricultural operation began.
    1. Except as provided in this section, an agricultural operation shall not be found to be a public or private nuisance if the agricultural operation alleged to be a nuisance employs methods or practices that are commonly or reasonably associated with agricultural production.
    2. An agricultural operation that employs methods or practices that are commonly or reasonably associated with agricultural production shall not be found to be a public or private nuisance as a result of any of the following activities or conditions:
      1. Change in ownership or size;
      2. Nonpermanent cessation or interruption of farming;
      3. Participation in any government-sponsored agricultural program;
      4. Employment of new technology; or
      5. Change in the type of agricultural product produced.
    1. Notwithstanding any other provision of this section to the contrary, an agricultural operation shall not be found to be a public or private nuisance if the agricultural operation:
      1. Was established before the commencement of the use of the area surrounding the agricultural operation for nonagricultural activities; and
      2. Employs methods or practices that are commonly or reasonably associated with agricultural production.
    2. Employment of methods or practices that are commonly or reasonably associated with agricultural production or are in compliance with any state or federally issued permit shall create a rebuttable presumption that an agricultural operation is not a nuisance.
  2. The court may award expert fees, reasonable court costs, and reasonable attorney's fees to the prevailing party in any action brought to assert that an agricultural operation is a public or private nuisance.

History. Acts 1981, No. 301, § 3; A.S.A. 1947, § 34-122; Acts 2005, No. 2257, § 5.

Amendments. The 2005 amendment substituted, in (a), “operation or its facilities or appurtenances” for “facility, its appurtenances, or the operation thereof” and “agricultural operation or its facilities or appurtenances were” for “facility, its appurtenances, or the operation thereof was”; and added (b)-(d).

Research References

U. Ark. Little Rock L. Rev.

Kristin Titley, Note: Environmental Law—Regulation of Concentrated Animal Feeding Operations—Reducing the Nuisance: How Arkansas Can Use Its Right-to-Farm Statute to Protect Against the Destruction of CAFOs, 37 U. Ark. Little Rock L. Rev. 495 (2015).

2-4-108. Liberal construction.

This chapter is remedial in nature and shall be liberally construed to effectuate its purposes.

History. Acts 2005, No. 2257, § 2[6].

Publisher's Notes. As passed, Acts 2005, No. 2257, contained two sections designated as 2.

Chapter 5 Domestic Fish Farming

Effective Dates. Acts 1961, No. 166, § 5: Mar. 6, 1961. Emergency clause provided: “It is hereby found and determined by the General Assembly that many of the laws of this state are not clear as to the definition of fish farming, and that confusion often arises in interpreting many of such laws because of the lack of clarity as to the definition of the term ‘fish farming’ and that the immediate passage of this act is necessary to clarify the definition of such term. Therefore, an emergency is hereby declared to exist and this act, being immediately necessary for the preservation of the public peace, health and safety shall be in full force and effect from and after its passage and approval.”

Subchapter 1 — General Provisions

2-5-101. Legislative intent.

In recognition of the fact that domestic fish farming has become an important part of the agricultural economy of this state, the General Assembly determines and declares that whenever any of the statutes, laws, or rules promulgated pursuant thereto shall use any of the following terms, the terms so used and when used shall be deemed and construed to include within the common or statutory definition the following:

  1. “Agriculture” or “agricultural pursuit” or any similar term means the cultivation, growing, harvesting, or marketing of domesticated fish;
  2. “Cultivated crop” means domesticated fish which are grown, managed, or harvested on an annual, semiannual, biennial, or short-interval basis; and
  3. “Livestock” means domesticated fish which are grown, managed, harvested, or marketed as a cultivated crop.

History. Acts 1961, No. 166, § 1; A.S.A. 1947, § 78-1801.

2-5-102. Definition.

As used in this subchapter, unless the context otherwise requires, “domesticated fish” means any fish that are spawned and grown, managed, harvested, and marketed on an annual, semiannual, biennial, or short-term basis in privately owned waters as privately owned waters are defined in § 15-43-301.

History. Acts 1961, No. 166, § 2; A.S.A. 1947, § 78-1802.

2-5-103. Game and Fish Commission not affected.

Nothing in this subchapter shall be interpreted or construed to affect, change, or alter any of the powers or controls over fish and wildlife in this state vested in the Arkansas State Game and Fish Commission under Arkansas Constitution, Amendment 35.

History. Acts 1961, No. 166, § 3; A.S.A. 1947, § 78-1803.

Cross References. Arkansas State Game and Fish Commission, § 15-41-102 et seq.

Subchapter 2 — Commercial Bait and Ornamental Fish Act

Cross References. Commercial Bait and Ornamental Fish Fund, § 19-6-801.

2-5-201. Title.

This subchapter shall be known and may be cited as the “Commercial Bait and Ornamental Fish Act”.

History. Acts 2005, No. 1449, § 1.

2-5-202. Purpose.

The purpose of this subchapter is to:

  1. Establish a voluntary certification program to provide high quality farm-raised bait and ornamental fish free of certain diseases, undesirable plants, undesirable animals, and other contaminants deemed injurious to the fish or fisheries;
  2. Conduct programs to promote the use and sale of certified bait and ornamental fish raised in Arkansas; and
  3. Provide state oversight of and funding from the beneficiaries of the program.

History. Acts 2005, No. 1449, § 1.

2-5-203. Definitions.

As used in this subchapter:

  1. “Board” means the State Plant Board; and
  2. “Person” means an individual, partnership, limited liability company, corporation, association, or two (2) or more individuals having a joint or common interest.

History. Acts 2005, No. 1449, § 1.

2-5-204. Powers and duties of State Plant Board.

  1. The State Plant Board shall:
    1. Administer this subchapter and the Commercial Bait and Ornamental Fish Fund;
    2. Certify the commercial bait and ornamental fish that meet the standards and qualifications of the board under this subchapter;
    3. Investigate methods of production and the occurrence of certain diseases, undesirable plants, undesirable animals, and other contaminants of commercial bait and ornamental fish and fisheries;
    4. Conduct marketing programs to promote the use and sale of certified bait and ornamental fish raised in Arkansas; and
      1. Promulgate all rules the board considers necessary or desirable to implement this subchapter.
      2. The board shall establish in its rules the management practices, testing procedures, and appropriate science criteria required for certification under this subchapter.
  2. The board may authorize the Director of the State Plant Board to appoint any deputy the board considers necessary to implement this subchapter.

History. Acts 2005, No. 1449, § 1.

Cross References. Commercial Bait and Ornamental Fish Fund, § 19-6-801.

2-5-205. Certificates.

  1. A person that has met the standards and qualifications established by the State Plant Board under this subchapter shall receive from the board a commercial bait and ornamental fish certificate.
  2. The certificate shall be in the form prescribed by the board and shall attest that the commercial bait and ornamental fish covered by the certificate have met the standards and qualifications established by the board under this subchapter.
  3. The certificate shall be displayed only by a person who is certified under this subchapter.

History. Acts 2005, No. 1449, § 1.

2-5-206. Fees.

  1. The State Plant Board may prescribe application, certification, and other fees to cover the costs of inspection, certification, and marketing under this subchapter.
  2. All fees collected under this subchapter shall be deposited into the Commercial Bait and Ornamental Fish Fund to be used by the board to administer this subchapter.

History. Acts 2005, No. 1449, § 1.

Cross References. Commercial Bait and Ornamental Fish Fund, § 19-6-801.

2-5-207. Unlawful acts — Penalties — Revocation of certificate.

  1. It is unlawful for any person to:
    1. Use the term “Arkansas certified” or any similar term concerning the quality of bait or ornamental fish without the proper certification from the State Plant Board;
    2. Falsely advertise or represent any bait or ornamental fish as being certified by the board;
    3. Use any emblem, label, or language for the purpose of misleading a person into believing that any bait or ornamental fish has been certified by the board when the certification has not been obtained;
    4. Misuse any tag, label, or certificate issued by the board;
    5. Obtain or attempt to obtain the certification of any bait or ornamental fish by making a false statement or misrepresentation to the board or to the board's inspectors, deputies, or agents;
    6. Violate any rule of the board under this subchapter; or
    7. Violate any agreement made as a condition for receiving a certificate.
  2. Any person who pleads guilty or nolo contendere to or is found guilty of violating this section is guilty of a violation and shall be punished by a fine of not less than twenty-five dollars ($25.00) nor more than five hundred dollars ($500) for each offense.
    1. A certificate issued under this subchapter may be revoked by the Director of the State Plant Board after a hearing before the director, regardless of whether a prosecution is commenced.
      1. Any person whose certificate is revoked by the director is entitled to an appeal to the board.
      2. The decision of the board on appeal is final.

History. Acts 2005, No. 1449, § 1; 2007, No. 827, § 1; 2019, No. 315, § 3.

Amendments. The 2007 amendment substituted “violation” for “misdemeanor” in (b), and made stylistic changes.

The 2019 amendment deleted “or regulation” following “rule” in (a)(6).

2-5-208. Intergovernmental cooperation.

In administering this subchapter, the State Plant Board shall cooperate to the fullest extent possible with other agencies of the state and the federal government.

History. Acts 2005, No. 1449, § 1; 2007, No. 827, § 2.

Amendments. The 2007 amendment substituted “shall cooperate” for “may cooperate”.

Chapter 6 Catfish Processor Fair Practices Act

Effective Dates. Acts 1987, No. 365, § 11: July 1, 1987.

Acts 1989 (3rd Ex. Sess.), No. 53, § 10: Nov. 16, 1989. Emergency clause provided: “It is hereby found and determined by the General Assembly that the Catfish Processors Fair Practices Act of 1987 is in need of strengthening in order to grant additional authority to the State Plant Board to protect Arkansas catfish producers from unfair practices; that this Act grants such authority; and that this Act should go into effect immediately in order to provide additional protection to Arkansas catfish producers as soon as possible. Therefore, an emergency is hereby declared to exist and this Act being immediately necessary for the preservation of the public peace, health and safety shall be in full force and effect from and after its passage and approval.”

2-6-101. Title.

This chapter shall be known and may be cited as the “Arkansas Catfish Processor Fair Practices Act of 1987”.

History. Acts 1987, No. 365, § 1.

Case Notes

Cited: Jackson v. Swift-Eckrich, 830 F. Supp. 486 (W.D. Ark. 1993).

2-6-102. Purpose.

The General Assembly finds that a burden on and an obstruction to intrastate commerce in the catfish farming industry is caused when payment is not made for the catfish and that these arrangements are contrary to the public interest. This chapter is intended to remedy this burden on and obstruction to intrastate commerce in catfish and to protect the public interest.

History. Acts 1987, No. 365, § 3.

2-6-103. Definitions.

As used in this chapter:

  1. “Board” means the State Plant Board;
  2. “Capable of use as human food” means and applies to any catfish or part or product of any catfish unless it is denatured or otherwise identified as required by rules prescribed by the board to deter its use as human food, or unless it is naturally inedible by humans;
  3. “Cash sale” means a sale in which the seller does not expressly extend credit to the buyer;
  4. “Catfish” means any species of the scientific order Ostariophysida, family Ictaluridae;
  5. “Class A registrant” means any catfish processor who purchases at least fifty thousand dollars ($50,000) worth of catfish annually from catfish producers;
  6. “Direct retail sale” means the sale of catfish products directly to the consumer;
  7. “Director” means the Director of the State Plant Board or his or her designee;
  8. “Owner” means a person or a producer that owns an equity interest, directly or indirectly, in a catfish processor;
  9. “Person” includes any individual, partnership, corporation, and association, or other legal entity;
  10. “Processor” means any person engaged in handling, storing, preparing, manufacturing, packing, or holding catfish products;
  11. “Producer” means any person engaged in the business of producing catfish by any method;
  12. “Product” means any catfish product capable of use as human food which is made wholly or in part from any catfish or portion thereof; and
  13. “Secured party” means a lender who has a perfected security interest under the Uniform Commercial Code, § 4-1-101 et seq., in the catfish being sold.

History. Acts 1987, No. 365, § 4; 1989 (3rd Ex. Sess.), No. 53, § 1; 2003, No. 128, § 1.

2-6-104. Administration.

  1. This chapter shall be administered by the State Plant Board.
  2. The board is authorized to promulgate such rules as may be necessary for the efficient enforcement of this chapter, including the establishment of reasonable fees for registering with the board.

History. Acts 1987, No. 365, §§ 2, 8; 1989 (3rd Ex. Sess.), No. 53, § 2.

2-6-105. Registration and suspension — Exception.

    1. Except as provided in subsection (e) of this section, every catfish processor in the state shall register with the State Plant Board.
    2. Applications for registration as a catfish processor under this chapter shall be made on forms prescribed by the Director of the State Plant Board.
    3. Every application is to be accompanied by an application fee of one hundred fifty dollars ($150), a certified financial statement in a form prescribed by the director, and any further information the director may by rule require.
  1. The board shall promulgate such rules as necessary to secure the performance of catfish purchasing obligations.
  2. Whenever, after due notice and hearing, the board finds any registrant is insolvent or has violated any provisions of this chapter, it may issue an order suspending the registrant for a reasonable specified period. The order of suspension shall take effect within five (5) days unless suspended, modified, or set aside by the board or a court of competent jurisdiction.
  3. If the board finds any processor is insolvent, is issuing invalid or insufficient checks, or is causing a breach of contract with the producer by failure to pay the producer in accordance with the contract, the board shall issue an order requiring the processor to cease and desist from purchasing catfish except under such conditions as the board may prescribe to effectuate the purposes of this chapter.
  4. Those processors whose average annual purchases from catfish producers do not exceed one hundred thousand dollars ($100,000) shall be exempt from the provisions of this section.

History. Acts 1987, No. 365, § 6; 1989 (3rd Ex. Sess.), No. 53, § 3; 1995, No. 190, § 1; 1995, No. 191, § 1; 2019, No. 315, § 4.

Amendments. The 2019 amendment substituted “rule” for “regulation” in (a)(3); and deleted “and regulations” following “rules” in (b).

2-6-106. Unlawful practices — Penalties.

    1. With respect to catfish or catfish products, it shall be unlawful for any processor to engage in or use any unfair, unjustly discriminatory, or deceptive practice.
    2. If any person subject to this chapter violates any of the provisions of this chapter or of any order of the State Plant Board under this chapter relating to the purchase, sale, or handling of catfish, he or she shall be liable to the person injured for the full amount of damages sustained in consequence of the violation.
  1. This liability may be enforced either by complaint to the board or by suit in any circuit court of competent jurisdiction. This section shall not in any way abridge or alter the remedies now existing at common law or by statute, but the provisions of this section are in addition to those remedies.
  2. The board is authorized to apply for and the court is authorized to grant a temporary or permanent injunction restraining any person from violating or continuing to violate any of the provisions of this chapter or any rule promulgated under this chapter, notwithstanding the existence of other remedies at law. The injunction shall be issued without bond.
  3. The board may assess civil penalties against any Class A registrant as follows:
    1. Not more than fifty dollars ($50.00) for each day payment to the producer is late under § 2-6-107(a)(2);
    2. Not more than one hundred dollars ($100) for each day payment to the producer is late under the contract between the registrant and the producer; and
    3. In instances where the registrant has paid a producer with an invalid or insufficient check, not more than two hundred dollars ($200) for each day the check is invalid or insufficiently funded.

History. Acts 1987, No. 365, §§ 7, 9, 10; 1989 (3rd Ex. Sess.), No. 53, § 4; 2019, No. 315, § 5.

Amendments. The 2019 amendment deleted “or regulation” following “rule” in the first sentence of (c).

2-6-107. Purchase methods — Delays.

  1. Each processor shall use one (1) of the following methods to purchase catfish products:
    1. The processor may deliver to the producer or his or her authorized representative and any secured parties the full amount of the purchase price on the same day the catfish product is purchased and possession is transferred;
      1. Before the close of the fourteenth calendar day following the purchase of the catfish products and transfer or possession of the catfish products, the processor may deliver to the producer or his or her authorized representative and any secured parties the full amount of the purchase price.
      2. If the producer or his or her authorized representative or secured parties are not present to receive payment at the point of transfer or possession, as provided in subdivision (a)(1) of this section, the processor shall wire transfer funds or place a check in the United States mail for the full amount of the purchase price, properly addressed to the producer and any secured parties, within the time limits specified in this subsection. This action shall be deemed in compliance with the requirement for prompt payment under this subdivision (a)(2); or
    2. The parties to the purchase and sale of catfish products may expressly agree in writing before the purchase or sale to effect payment in a manner other than that required in subdivision (a)(1) or (2) of this section if the manner of payment does not interfere with the rights of secured parties. Any agreement shall be disclosed in the records of any producer selling the catfish and in the processors' records and on the accounts or other documents issued by the processors relating to the transaction.
    1. Regardless of the method elected under subdivision (a)(2) of this section to purchase catfish products, a Class A registrant, before the transaction, shall be required to:
      1. Be bonded in the amount of two hundred fifty thousand dollars ($250,000) or in an amount which may be determined by the State Plant Board;
      2. Post a security bond in the amount of two hundred fifty thousand dollars ($250,000) or in an amount which may be determined by the board; or
      3. Provide cash security, letters of credit, and such other evidences of security as shall be authorized by the board.
    2. However, if a Class A registrant purchases catfish solely and exclusively from producers that are also the owners of the processor, then the Class A registrant is exempt from the bonding or security requirements imposed under subdivision (b)(1) of this section.
  2. Any delay or attempt to delay, by a processor purchasing catfish products, the collection of funds as provided in this chapter or otherwise for the purpose of or resulting in extending the normal period of payment for the catfish shall be considered an unfair practice in violation of this chapter.
    1. At the time catfish are delivered to a processor and unloaded from a live-haul truck, the processor shall weigh the catfish using a device that is of a type suitable for the weighing of catfish.
    2. Deductions for trash fish, turtles, and other foreign material except water shall be determined by a separate weighing of the same.
    3. There shall be no water tare nor deductions made for water in weighing baskets.
    4. Processors are responsible for draining water from weighing baskets.
    1. Scales used to weigh catfish and foreign material under this section must be capable of electronically printing a ticket that provides an exact duplicate of the weight indicated.
    2. A copy of the ticket shall be provided to the producer at the time of weighing.
    3. The ticket shall also contain the following:
      1. The name and address of the processor;
      2. The name of the owner of the catfish being weighed;
      3. The date the catfish are weighed;
      4. The signature of the individual who weighs the catfish; and
      5. Any additional information as the board deems necessary for the lawful and accurate recording of the weight of the catfish.
  3. Processors who process less than seventeen thousand five hundred pounds (17,500 lbs.) of catfish per week are not required to use the electronic printing scales otherwise required by this section.(g) The board shall be responsible for the enforcement of this section, and its agents shall perform periodic inspections of processing plants to ensure that the provisions of this section are being carried out and that all deductions for foreign material are legitimate and fair to the producer.

History. Acts 1987, No. 365, § 5; 1989 (3rd Ex. Sess.), No. 53, § 5; 1991, No. 764, § 1; 2003, No. 128, § 2.

2-6-108. [Repealed.]

Publisher's Notes. This section, concerning this chapter's applicability to unbonded processors, was repealed by identical Acts 1995, Nos. 190 and 191, § 2. The section was derived from Acts 1989 (3rd Ex. Sess.), No. 53, § 6.

2-6-109. Receivership — Petition — Assets.

  1. The Director of the State Plant Board in his or her discretion may, following a suspension of a Class A registrant as provided in this chapter, file a verified petition in the proper court requesting that the director be appointed as a receiver to take custody of catfish in the registrant's facility and to provide for the disposition of those assets in the manner provided in this chapter and under the supervision of the court.
  2. The petition shall be filed in the county in which the registrant is located. The proper court shall appoint the director as receiver.
  3. Upon the filing of the petition, the court shall issue ex parte such temporary orders as may be necessary to preserve or protect the assets in receivership, or the value thereof, and the rights of producers, until a plan of disposition is approved.

History. Acts 1989 (3rd Ex. Sess.), No. 53, § 7.

2-6-110. Receivership — Plan for disposition of catfish.

A petition filed by the Director of the State Plant Board under § 2-6-109 shall be accompanied by the director's plan for disposition of the processed catfish. The plan may provide for the pro rata delivery of part or all of the processed catfish to producers holding weigh tickets, or may provide for the sale under the supervision of the director of part or all of the processed catfish for the benefit of those producers, or may provide for any combination thereof, as the director in his or her discretion determines to be necessary to minimize losses.

History. Acts 1989 (3rd Ex. Sess.), No. 53, § 7.

2-6-111. Receivership — Hearings on plan — Notice — Service.

  1. When a petition is filed by the Director of the State Plant Board under § 2-6-109 the clerk of court shall set a date for hearing on the director's proposed plan of disposition at a time not less than ten (10) nor more than fifteen (15) calendar days after the date the petition is filed.
  2. Copies of the petition, the notice of hearing, and the director's plan of disposition shall be served upon the Class A registrant and upon the surety company issuing the Class A registrant's bond in the manner required for service of an original notice.
  3. A delay in effecting service upon the Class A registrant or surety shall not be cause for denying the appointment of a receiver and shall not be grounds for invalidating any action or proceeding in connection therewith.

History. Acts 1989 (3rd Ex. Sess.), No. 53, § 7.

2-6-112. Receivership — Notification to weigh ticket holders.

  1. The Director of the State Plant Board shall cause a copy of each of the documents served upon the Class A registrant under § 2-6-111 to be mailed by ordinary mail to every person holding a weigh ticket issued by the Class A registrant, as determined by the records of the Class A registrant or the records of the director.
  2. The failure of any person referred to in this section to receive the required notification shall not invalidate the proceedings on the petition for the appointment of a receiver or any portion thereof.
  3. Persons referred to in this section are not parties to the action unless admitted by the court upon application therefor.

History. Acts 1989 (3rd Ex. Sess.), No. 53, § 7.

2-6-113. Receivership — Publication of notification of receiver's appointment.

When appointed as a receiver under this chapter the Director of the State Plant Board shall cause notification of the appointment to be published once each week for two (2) consecutive weeks in a newspaper of general circulation in each of the counties in which the Class A registrant maintains a business location, and in a newspaper of general circulation in this state.

History. Acts 1989 (3rd Ex. Sess.), No. 53, § 7.

2-6-114. Receivership — Designee — Duties of director.

The Director of the State Plant Board may designate one (1) of his or her employees to appear on behalf of the director in any proceedings before the court with respect to the receivership, and to exercise the functions of the director as receiver, except that the director shall determine whether or not to petition for the appointment as receiver, shall approve the proposed plan for disposition of processed catfish, shall approve the proposed plan for distribution of any cash proceeds, and shall approve the proposed final report.

History. Acts 1989 (3rd Ex. Sess.), No. 53, § 7.

2-6-115. Receivership — Applicability of administrative procedures.

The actions of the Director of the State Plant Board in connection with petitioning for appointment as a receiver, and all actions under such appointment, shall not be subject to the provisions of the Arkansas Administrative Procedure Act, § 25-15-201 et seq.

History. Acts 1989 (3rd Ex. Sess.), No. 53, § 7.

2-6-116. Receivership — Sureties.

When the Director of the State Plant Board is appointed as receiver under this chapter, the surety on the bond of the Class A registrant shall be joined as a party defendant by the director. If required by the court, the surety shall pay the bond proceeds, or so much thereof as the court finds necessary, into the court, and when so paid the surety shall be absolutely discharged from any further liability under the bond to the extent of the payment.

History. Acts 1989 (3rd Ex. Sess.), No. 53, § 7.

2-6-117. Receivership — Notice of claims filing deadline.

  1. When appointed as receiver under this chapter, the Director of the State Plant Board is authorized to give notice in the manner specified by the court to persons holding weigh tickets issued by the Class A registrant to file their claims within sixty (60) calendar days after the date of appointment.
  2. Failure to timely file a claim shall defeat the claim with respect to the surety bond and any catfish, or proceeds from the sale of catfish, except to the extent of any excess remaining after all timely claims are paid in full.

History. Acts 1989 (3rd Ex. Sess.), No. 53, § 7.

2-6-118. Receivership — Sale of processed catfish — Merchandiser.

  1. When the court approves the sale of processed catfish the Director of the State Plant Board shall employ a merchandiser to effect the sale of those commodities.
  2. A person employed as a merchandiser must meet the following requirements:
    1. The person shall be experienced or knowledgeable in the operation of processors registered under this chapter, and if the person has ever held a registration certificate issued under this chapter, the person shall never have had the registration suspended;
    2. The person shall be experienced or knowledgeable in the marketing of aquacultural products;
    3. The person shall not be the holder of a weigh ticket issued by the Class A registrant and shall not have a claim against the Class A registrant, whether as a secured or unsecured creditor, and otherwise shall not have any pecuniary interest in the Class A registrant or the Class A registrant's business.
  3. The merchandiser shall be entitled to reasonable compensation as determined by the director.
  4. A sale of processed catfish shall be made in a commercially reasonable manner and under the supervision of the director.
  5. The director shall have authority to sell the processed catfish, and provisions of the Uniform Commercial Code, § 4-1-101 et seq., to the contrary notwithstanding, any processed catfish so sold shall be free of all liens and other encumbrances.

History. Acts 1989 (3rd Ex. Sess.), No. 53, § 7.

2-6-119. Receivership — Distribution to producers.

The plan of disposition, as approved by the court, shall provide for the distribution of the processed catfish, or the proceeds from the sale of processed catfish or the proceeds from any surety bond, or any combination thereof, less expenses incurred by the Director of the State Plant Board in connection with the receivership, to producers on a pro rata basis as their interests are determined. Distribution shall be without regard to any setoff, counterclaim, or charge.

History. Acts 1989 (3rd Ex. Sess.), No. 53, § 7.

2-6-120. Receivership — Continued operation of business.

The Director of the State Plant Board may, with the approval of the court, continue the operation of all or any part of the business of the Class A registrant on a temporary basis and take any other course of action or procedure which will serve the interests of the producers.

History. Acts 1989 (3rd Ex. Sess.), No. 53, § 7.

2-6-121. Receivership — Reimbursement.

The Director of the State Plant Board shall be entitled to reimbursement out of processed catfish or proceeds held in receivership for all expenses incurred as court costs or in handling and disposing of processed catfish, and for all other costs directly attributable to the receivership. The right of reimbursement of the director shall be prior to any claims against the processed catfish or proceeds of sale thereof and shall constitute a claim against the surety bond of the Class A registrant.

History. Acts 1989 (3rd Ex. Sess.), No. 53, § 7.

2-6-122. Receivership — Proceeds — Termination.

In the event the approved plan of disposition requires the sale of processed catfish, or the distribution of proceeds from the surety bond, or both, the Director of the State Plant Board shall submit to the court a proposed plan of distribution of those proceeds. Upon such notice and hearing as may be required by the court, the court shall accept or modify the proposed plan. When the plan is approved by the court and executed by the director, the director shall be discharged and the receivership terminated.

History. Acts 1989 (3rd Ex. Sess.), No. 53, § 7.

2-6-123. Receivership — Final report.

At the termination of the receivership, the Director of the State Plant Board shall file a final report containing the details of his or her actions, together with such additional information as the court may require.

History. Acts 1989 (3rd Ex. Sess.), No. 53, § 7.

Chapter 7 Farm Mediation

Research References

Ark. L. Notes.

Kilpatrick, How Much Do You Know (or Care) About Alternative Dispute Resolution?, 1996 Ark. L. Notes 53.

Subchapter 1 — General Provisions

Research References

Am. Jur. 4 Am. Jur. 2d, Alt. Disp. Res., § 1 et seq.

U. Ark. Little Rock L.J.

Survey, Agricultural Law, 12 U. Ark. Little Rock L.J. 597.

2-7-101. Title.

This chapter shall be known and may be cited as the “Arkansas Farm Mediation Act”.

History. Acts 1989, No. 829, § 1.

Case Notes

Cited: First Nat'l Bank v. Clinton, 304 Ark. 411, 802 S.W.2d 928 (1991).

2-7-102. Definitions.

As used in this chapter, unless the context otherwise requires:

    1. “Action” means a court action or legal recourse to the courts of the State of Arkansas by a creditor against a farmer for payment of a debt, to enforce or foreclose a security interest, lien, or mortgage, or to repossess or declare a creditor's interest in agricultural property.
    2. “Action” includes, but is not limited to, garnishment, replevin, foreclosure, execution of judgment, and involuntary receivership;
  1. “Agricultural property” means all of the following:
    1. Real property that is used principally for farming or ranching;
    2. Real property that is a farmer's principal place of residence and any land contiguous to the residence;
    3. Personal property that is used as security to finance farming or ranching; and
    4. Personal property that is used for farming or ranching;
  2. “Creditor” means any person who holds a mortgage on agricultural property, who has a lien on or a security interest in agricultural property, or who is a judgment creditor with a judgment against a farmer affecting the farmer's agricultural property;
  3. “Farmer” means any person who is engaged in farming or ranching, who has at least twenty thousand dollars ($20,000) in outstanding agricultural loans that are secured by real estate, crops, livestock, farm machinery, or other agricultural supplies, and who either:
    1. Owns or leases a total of fifty (50) acres or more of land that is agricultural property; or
    2. Has had gross sales of farm products of at least twenty thousand dollars ($20,000) in any of the preceding three (3) years;
  4. “Farming” or “ranching” means the employment or operation of real property for the production of agricultural products including, but not limited to, the following:
    1. The production or cultivation of agricultural, horticultural, or aquacultural commodities such as field crops, rice, soybeans, cotton, sorghum, corn, wheat, fruit, vegetables, mushrooms, nursery stock, ornamental trees, sod, or flowers;
    2. Animal or poultry husbandry and the production of poultry and poultry products, livestock, equine or fur-bearing animals and wildlife, including the raising, breeding, shearing, grazing, or other feeding of these animals;
    3. Dairy production;
    4. Viticulture, wine-making, and related activities; and
    5. On-site storing, handling, and processing incidental to the production of the foregoing agricultural or horticultural products and commodities;
  5. “Mediation” means the process in which a neutral person or persons intermediate between or among parties for the purpose of facilitating the settlement of their dispute by mutual agreement; and
  6. “Party” or “parties” means, with respect to the mediation of a dispute affecting a farmer's agricultural property, the farmer, a creditor of the farmer, and any other person necessary to the resolution of a dispute or an action.

History. Acts 1989, No. 829, § 2.

Case Notes

Application.

Trial court did not err in refusing to apply the Arkansas Farm Mediation Act, § 2-7-101 et seq., to an action relating to a writ of execution where a debtor failed to show that this proceeding was in connection with a secured indebtedness. Moreover, he did not make it clear that the loans were secured by real estate, crops, livestock, farm machinery, or other agricultural supplies, as required in the definition of a “farmer.” Looney v. Raby, 100 Ark. App. 326, 268 S.W.3d 345 (2007).

2-7-103. [Repealed.]

Publisher's Notes. This section, which excluded from this chapter commercial banks chartered by the state or federal government, was repealed by Acts 1989 (1st Ex. Sess.), No. 36, § 16. The section was derived from Acts 1989, No. 829, § 11.

Subchapter 2 — Farm Mediation Office

Effective Dates. Acts 2015, No. 1060, § 20: Apr. 4, 2015. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that the efficient administration of the programs and functions conducted by the Arkansas Development Finance Authority is critical to the economic well-being of the state; that it is vital that business and citizens are immediately encouraged to the full extent possible to use the authority's programs and thereby help the economic development of state resources; and that this act is immediately necessary to ensure that the authority's programs are operated efficiently and in a manner that does not hinder participation or negatively impact program applicants. Therefore, an emergency is declared to exist, and this act being immediately necessary for the preservation of the public peace, health, and safety shall become effective on: (1) The date of its approval by the Governor; (2) If the bill is neither approved nor vetoed by the Governor, the expiration of the period of time during which the Governor may veto the bill; or (3) If the bill is vetoed by the Governor and the veto is overridden, the date the last house overrides the veto.”

Acts 2019, No. 910, § 6346(b): July 1, 2019. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that this act revises the duties of certain state entities; that this act establishes new departments of the state; that these revisions impact the expenses and operations of state government; and that the sections of this act other than the two uncodified sections of this act preceding the emergency clause titled ‘Funding and classification of cabinet-level department secretaries’ and ‘Transformation and Efficiencies Act transition team’ should become effective at the beginning of the fiscal year to allow for implementation of the new provisions at the beginning of the fiscal year. Therefore, an emergency is declared to exist, and Sections 1 through 6343 of this act being necessary for the preservation of the public peace, health, and safety shall become effective on July 1, 2019”.

2-7-201. Creation.

  1. There is hereby created within the Department of Agriculture the Arkansas Farm Mediation Office which shall administer the Arkansas Farm Mediation Program to provide mediation and debt management services to farmers and their creditors in the State of Arkansas.
    1. The program shall be administered by the Secretary of the Department of Agriculture who shall employ mediators and administrative staff in such numbers as are necessary and as the General Assembly may appropriate to carry out the provisions of this chapter.
    2. The Secretary of the Department of Agriculture may apply to the United States Secretary of Agriculture or any other agency or department for any financial assistance for the administration and operation of the program.
    3. The Secretary of the Department of Agriculture or his or her designee shall select mediators who are knowledgeable in the areas of finance, agriculture, and negotiation and shall train them in any other matters as are necessary to carry out their functions under this chapter.
    4. The Secretary of the Department of Agriculture may promulgate rules to carry out the provisions of this chapter.

History. Acts 1989, No. 829, § 3; 2015, No. 1060, § 1; 2019, No. 910, § 10.

A.C.R.C. Notes. The Division of Agriculture Development was transferred from the Arkansas Industrial Development Commission to the Arkansas Development Finance Authority by Acts 1989, No. 885.

Amendments. The 2015 amendment substituted “president” for “director” throughout the section; deleted “Division of Agriculture Development of the” preceding “Arkansas Development Finance Authority” in (a); substituted “Arkansas Development Finance Authority” for “Division of Agriculture Development” in (b)(1); and substituted “The president may promulgate rules” for “The director shall have the authority to promulgate any necessary rules and regulations” in (b)(4).

The 2019 amendment substituted “Department of Agriculture” for “Arkansas Development Finance Authority” in (a); and substituted “Secretary of the Department of Agriculture” for “President of the Arkansas Development Finance Authority” and “president” throughout (b).

2-7-202. Disclosure of information.

  1. All materials, data, and information received by the Arkansas Farm Mediation Office are confidential and are not subject to examination or disclosure as public information under the Freedom of Information Act of 1967, § 25-19-101 et seq.
  2. No mediator or administrative employee of the office shall knowingly disclose any materials, data, or information concerning a mediation request or suspension order without the consent of the farmer and the creditors involved.
  3. Mediation meetings between a farmer and any other parties conducted by a mediator are not open to public participation and are not subject to the provisions for open meetings under the Freedom of Information Act of 1967, § 25-19-101 et seq.

History. Acts 1989, No. 829, § 10.

2-7-203. Forms.

The Arkansas Farm Mediation Office shall prepare all forms necessary for the administration of this chapter and shall ensure that forms are disseminated and that the availability of mediation under this chapter is publicized so that creditors and borrowers of agricultural loans receive adequate notification of the Arkansas Farm Mediation Program.

History. Acts 1989, No. 829, § 3.

Subchapter 3 — Mediation

2-7-301. Voluntary mediation.

    1. A farmer and any creditor of the farmer may voluntarily participate in mediation under the Arkansas Farm Mediation Program if they wish to resolve a dispute between them that involves the creditor's interest in a mortgage, lien, security interest, or judgment affecting the agricultural property of the farmer.
    2. Voluntary mediation shall occur before an action has been initiated in court in which the farmer and creditor are parties.
  1. The Arkansas Farm Mediation Office shall adopt voluntary mediation application and request forms.

History. Acts 1989, No. 829, § 5.

2-7-302. Release before proceedings required — Exceptions.

  1. In connection with a secured indebtedness of twenty thousand dollars ($20,000) or more, no proceeding against a farmer shall be commenced to foreclose a mortgage on agricultural property, to terminate a contract for deed to purchase agricultural property, to repossess or foreclose a security interest in agricultural property, to set off or seize an account, moneys, or other asset which is agricultural property, or to enforce any judgment against agricultural property unless the creditor has first obtained a release as provided in this chapter.
  2. An action for attachment or replevin may be commenced without first obtaining a release in those cases provided for under § 16-110-101(1)(A)(vi)-(viii) or § 18-60-807.

History. Acts 1989, No. 829, § 4.

Case Notes

Application.

Trial court did not err in refusing to apply the Arkansas Farm Mediation Act, § 2-7-101 et seq., to an action relating to a writ of execution where a debtor failed to show that this proceeding was in connection with a secured indebtedness. Moreover, he did not make it clear that the loans were secured by real estate, crops, livestock, farm machinery, or other agricultural supplies, as required in the definition of a “farmer.” Looney v. Raby, 100 Ark. App. 326, 268 S.W.3d 345 (2007).

Cited: First Nat'l Bank v. Clinton, 304 Ark. 411, 802 S.W.2d 928 (1991).

2-7-303. Notice — Form and content.

  1. Before commencing any proceeding prohibited by this section, § 2-7-302, and §§ 2-7-304 — 2-7-306 without first obtaining a release, a creditor shall serve a notice on the farmer that the farmer may request mandatory mediation of the farm indebtedness.
    1. The notice shall be in a form and contain the information as required by rule.
    2. The Director of the Arkansas Farm Mediation Program shall make forms available in each county recorder's office.
  2. The notice shall contain, at a minimum, the following information:
    1. The name and address of the farmer;
    2. The name, address, and telephone number of the creditor;
    3. A description of the debt and the amount currently owed;
    4. A description of the agricultural property securing the debt;
    5. A description of the proceeding the creditor intends to commence or continue or the action the creditor intends to take;
    6. A statement that the farmer has the right to request mandatory mediation which could result in restructuring the debt;
    7. The address and telephone number of the director;
    8. A statement that a request for mandatory mediation must be served on the director within fourteen (14) days after service of the notice on the farmer; and
    9. The location of the office of the recorder of the county in which the farmer resides where an application form for requesting mandatory mediation may be obtained.
  3. A creditor shall also serve a copy of such mediation notice on the director within five (5) days after the mediation notice has been served on the farmer by the creditor.

History. Acts 1989, No. 829, § 4.

2-7-304. Requests for mediation.

All requests for mediation by a farmer under § 2-7-301 shall be served on the Director of the Arkansas Farm Mediation Program within fourteen (14) days after the mediation notice was served on the farmer by the creditor. Every request for mediation shall be in a form and contain the information required by the director.

History. Acts 1989, No. 829, § 4.

2-7-305. Information on services — Assignment of mediator.

  1. Within five (5) days after receiving a request for mediation, the Director of the Arkansas Farm Mediation Program shall inform the farmer and the creditor of any financial analysis or legal or other services available that may assist them in preparing for the mediation meeting and of any other requirements the farmer and creditor must meet before the mediation meeting.
    1. Within twenty-one (21) days after receiving a request for mediation, the director shall assign a mediator and serve notice on the farmer and all his or her known creditors of the name of the mediator, the time and place of the mediation meeting.
    2. The meeting shall be not more than forty-two (42) days after the director receives the request, and of any activities prohibited during mediation.

History. Acts 1989, No. 829, § 4.

2-7-306. When provisions not applicable.

Sections 2-7-302 — 2-7-305 shall not apply:

  1. Where the debt to be collected was listed as a scheduled debt by the farmer in a petition in bankruptcy or for which a proof of claim form has been filed by a creditor under United States Code, Title 11, Chapters 7, 11, 12, or 13; and
    1. The debt was discharged;
    2. The creditor was granted relief from the automatic stay;
    3. Provision for repayment, restructuring, or other treatment of the debt was made in a confirmed plan;
    4. In the year preceding the date of commencement of the collection action, the automatic stay provided for under 11 U.S.C. § 362 was in effect with regard to the debt for more than ninety (90) days; or
  2. When the Arkansas Farm Mediation Office has not adopted and promulgated bylaws, rules, or program guidelines necessary to implement this chapter or has not hired qualified mediators for the mediation region in which the agricultural property involved is located.

History. Acts 1989, No. 829, § 4.

2-7-307. Initial meeting — Subsequent meetings.

  1. The initial mediation meeting shall be attended by the farmer and the creditor who served the mediation notice. The meeting shall be at least one (1) hour long and may be continued for a longer period at the discretion of the parties involved. Other creditors of the farmer are strongly encouraged to attend and may attend all mediation meetings.
  2. After the initial meeting any further mediation meetings shall be held by consent of the parties.

History. Acts 1989, No. 829, § 6.

2-7-308. Right to attorney — Duties of mediator.

    1. A farmer or other party has the right to be represented by an attorney at any mediation meeting or hearing.
    2. A waiver of this right before any mediation meeting or hearing is ineffective.
  1. At the initial mediation meeting and subsequent meetings, the mediator shall:
    1. Listen to the farmer and the creditors desiring to be heard;
    2. Attempt to mediate between the farmer and the creditors to reach a consensus where possible;
    3. Advise the farmer and creditor as to the existence of available assistance programs;
    4. Encourage the parties to adjust, refinance, or provide for the payment of the farmer's debts; and
    5. Advise, counsel, and assist the farmer and creditors in attempting to arrive at an agreement for the future conduct of financial relations among the parties or to arrive at a settlement which may be stipulated to in court for the resolution to the court action.

History. Acts 1989, No. 829, §§ 7, 9.

2-7-309. Agreements.

If an agreement is reached between the farmer and any creditor or creditors, the agreement shall:

  1. Be signed by the farmer and any such creditor or creditors;
  2. Bind each to the terms of the agreement;
  3. Be enforced as a legal contract between the farmer and such creditor or creditors; and
  4. Constitute a mediation release.

History. Acts 1989, No. 829, § 8.

2-7-310. Release of creditor — Effective period.

  1. The Director of the Arkansas Farm Mediation Program shall issue a release upon request to any creditor who has paid any required fees and:
    1. Who has attended an initial mediation meeting under § 2-7-301 or § 2-7-307;
    2. Who has served a mediation notice on the farmer and the farmer has not requested mediation within the time allowed;
    3. When the farmer has waived mediation with respect to that creditor or the agricultural property at issue;
    4. When the agricultural property has been abandoned by the farmer;
    5. In the discretion of the director if the default is other than monetary;
    6. When ordered to do so by a court upon a finding by the court that mediation would be unduly burdensome and an extreme hardship on the creditor;
    7. Upon the failure of a farmer to appear at a scheduled mediation meeting; or
    8. As otherwise provided by rule.
  2. A release is effective as to any proceeding commenced or continued or any action taken one (1) year or less after its date of issuance, but a release is not effective as to any proceeding commenced or action taken more than one (1) year after its date of issuance.

History. Acts 1989, No. 829, § 8.

Chapter 8 Tax Credits for Biotechnology and Advanced Biofuels [Repealed.]

2-8-101 — 2-8-109. [Repealed.]

Publisher's Notes. This chapter was repealed by Acts 2009, No. 716, § 1. The chapter was derived from the following sources:

2-8-101. Acts 1997, No. 1117, § 1; 1999, No. 1367, § 1.

2-8-102. Acts 1997, No. 1117, § 2; 1999, No. 1367, § 2; 2001, No. 900, § 1.

2-8-103. Acts 1997, No. 1117, § 3; 2001, No. 900, § 2.

2-8-104. Acts 1997, No. 1117, § 4.

2-8-105. Acts 1997, No. 1117, § 5.

2-8-106. Acts 1997, No. 1117, § 6; 1999, No. 1367, § 4; 2001, No. 900, § 3.

2-8-107. Acts 1997, No. 1117, § 7.

2-8-108. Acts 1997, No. 1117, § 8; 1999, No. 1367, § 5.

2-8-109. Acts 1999, No. 1367, § 3.

Chapter 9 Catfish Industry

Effective Dates. Acts 2019, No. 910, § 6346(b): July 1, 2019. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that this act revises the duties of certain state entities; that this act establishes new departments of the state; that these revisions impact the expenses and operations of state government; and that the sections of this act other than the two uncodified sections of this act preceding the emergency clause titled ‘Funding and classification of cabinet-level department secretaries’ and ‘Transformation and Efficiencies Act transition team’ should become effective at the beginning of the fiscal year to allow for implementation of the new provisions at the beginning of the fiscal year. Therefore, an emergency is declared to exist, and Sections 1 through 6343 of this act being necessary for the preservation of the public peace, health, and safety shall become effective on July 1, 2019”.

2-9-101. Purpose.

The purpose of this chapter is to promote the growth and development of the catfish industry in Arkansas by research, extension, promotion, and market development, thereby promoting the general welfare of the people of Arkansas.

History. Acts 1999, No. 790, § 1.

2-9-102. Definitions.

As used in this chapter:

  1. “Catfish industry” means any person or entity involved in rearing, processing, or selling of pond-raised catfish for potential profit, including any person, group, or company involved in a support industry;
  2. “Commercial catfish producer” means any person or entity involved in rearing catfish for potential profit;
  3. “Feed seller”, “seller”, or “feed dealer” means any person or entity that sells feed to a commercial catfish producer; and
  4. “Processor” means any person, group, or entity that purchases catfish from a commercial producer for the purpose of redistribution.

History. Acts 1999, No. 790, § 2.

2-9-103. Arkansas Catfish Promotion Board.

  1. The Arkansas Catfish Promotion Board is created. The board shall be composed of seven (7) members appointed by the Governor as follows:
      1. The Catfish Farmers of Arkansas, Inc., shall submit to the Governor the names of six (6) persons who are members of the catfish industry. The list of nominees shall include commercial catfish producers, processors, and feed dealers identified as such. The Arkansas Farm Bureau Federation shall submit to the Governor the names of six (6) persons who are commercial catfish producers. All members shall be residents of Arkansas.
      2. The Governor shall appoint four (4) members from the list submitted by the Catfish Farmers of Arkansas, Inc., and three (3) members from the list submitted by the Arkansas Farm Bureau Federation to serve on the board.
    1. Each year, not less than thirty (30) calendar days before the expiration of the terms of the current members of the board whose terms expire, the organizations named in subdivision (a)(1)(A) of this section shall submit to the Governor the names of two (2) nominees for each position to be filled on the board from the respective organizations, subject to the foregoing qualifications, and the Governor shall appoint the new members from each list of nominees. If no lists are submitted, the appointments shall be at the discretion of the Governor.
      1. Each member selected shall serve for a term of two (2) years and until his or her successor is selected as provided in this section.
      2. However, the initial members of the board shall be appointed for terms that will result in three (3) members' terms expiring after one (1) year and four (4) members' terms expiring after two (2) years.
    2. A midterm vacancy on the board shall be filled by appointment by the Governor from a list submitted within thirty (30) calendar days from the organization making the nomination for the position being vacated.
    3. A member of the board may be removed by a majority vote of the remaining board members for conviction of a felony, for not attending three (3) consecutive meetings, or if the member no longer meets the qualifications for his or her initial appointment.
  2. The President of the Catfish Farmers of Arkansas, Inc., shall call an organizational meeting of the board and shall preside until officers are elected. Members of the board shall organize immediately after their appointment and shall elect a chair, a vice chair, and a secretary-treasurer from the membership of the board, whose duties shall be those customarily exercised by those officers or specifically designated by the board. The board may appoint an executive director, who shall be the chief operating officer of the board and whose duties shall be designated by the board.
  3. The board may provide a salary for the executive director and for other necessary employees from funds derived from the assessments imposed in this chapter. Members of the board shall serve without compensation but may be reimbursed for reasonable expenses.
  4. The principal office of the board shall be located in Little Rock, Pulaski County, Arkansas.
  5. The resident agents of the board shall be the executive director of the board and the chair of the board, or either of them.

History. Acts 1999, No. 790, § 4.

2-9-104. Powers.

The Arkansas Catfish Promotion Board may:

  1. Plan and conduct a program of research, market development, and advertising designed to promote the catfish industry in Arkansas;
  2. Use funds derived from the assessments imposed in this chapter for research, extension, market development, and advertising designed to promote the catfish industry in Arkansas, including salaries and administration expenses;
  3. Have perpetual succession as a body politic and corporate and adopt bylaws for the regulation of its affairs and the conduct of its business;
  4. Prescribe rules and policies in connection with the performance of its functions and duties;
  5. Sue and be sued in its own name;
  6. Purchase, sell, or lease property of every description, real, personal, or mixed, including buildings or other facilities and equipment for the conduct of its business;
  7. Execute contracts and other instruments necessary or convenient in the exercise of its powers and functions; and
  8. Do any other acts and things necessary or convenient to carry out the purposes of this chapter and to exercise the powers granted by this chapter.

History. Acts 1999, No. 790, § 5.

2-9-105. Funding applications.

Disbursement of funds generated by this chapter shall be made only upon motion formally adopted by the Arkansas Catfish Promotion Board and presented to the Treasurer of State and only for the purpose prescribed in this chapter.

History. Acts 1999, No. 790, § 6; 2001, No. 215, § 1.

2-9-106. Voter referenda.

  1. The Arkansas Catfish Promotion Board shall maintain a list of commercial producers of catfish who are entitled to vote in referenda, shall prepare ballots for the referenda, and shall prescribe voting procedures. The board shall mail a ballot by registered mail to every commercial catfish producer identified on the list maintained by the board. Each producer shall be entitled to only one (1) vote.
  2. In all referenda, in order to be eligible to vote, a commercial catfish producer must have purchased catfish feed in the period from twelve (12) months immediately preceding the date of the referendum to not less than thirty (30) calendar days immediately preceding the date of the referendum.
  3. The Secretary of the Department of Finance and Administration shall be reimbursed from funds collected for the costs of holding referenda.

History. Acts 1999, No. 790, § 7; 2019, No. 910, § 3266.

Amendments. The 2019 amendment substituted “Secretary of the Department of Finance and Administration” for “Director of the Department of Finance and Administration” in (c).

2-9-107. Election vote for levy of the assessment.

    1. Within a reasonable time after July 30, 1999, the Arkansas Catfish Promotion Board shall cause an election to be held on the question of the levy of an assessment on the sale of catfish feed within the State of Arkansas to commercial catfish producers at a rate determined by the board, such rate of assessment not to exceed five dollars ($5.00) per ton of catfish feed sold.
    2. If a majority of the commercial catfish producers voting at the election vote for the levy of the assessment, the assessment shall be applicable to all sales of catfish feed made on and after a date specified by the board, which date shall not be later than ninety (90) calendar days after certification of the results of the election.
    3. The assessment shall be a continuing levy until either terminated by the board or until another election is held at which a majority of the commercial catfish producers voting at an election vote against the levy. The rate of assessment approved at an election shall not be increased except under the majority vote of the commercial catfish producers voting at a subsequent election.
    1. When petitions containing the signatures of thirty percent (30%) of the commercial catfish producers in the state, as determined by the latest available agricultural census data, are filed with the board requesting that the question of continuing the assessment be submitted to a vote of the catfish producers, the board shall cause an election to be held within ninety (90) calendar days after the filing of the petitions, to be conducted in the same manner as the initial election held on the question of the levy of the assessment.
    2. If a majority of the commercial catfish producers voting at the election vote against the levy of the assessment, the assessment shall not be levied as of the date ten (10) calendar days after the date of the election. The levy may be reapproved, in the same manner as the initial election and subject to the same vote requirements, at an election called by the board not earlier than twelve (12) months after the date of the previous election suspending the levy of the assessment.
    1. The assessment imposed and levied by this section shall be collected by the Secretary of the Department of Finance and Administration from each seller of catfish feed, who shall add the assessment to the purchase price of catfish feed sold in this state to commercial catfish producers.
    2. Each seller of catfish feed, when remitting assessments collected to the secretary, may deduct not more than one percent (1%) of the gross amount of the assessments to cover the cost of compliance.

History. Acts 1999, No. 790, § 8; 2019, No. 910, § 3267.

Amendments. The 2019 amendment substituted “Secretary of the Department of Finance and Administration” for “Director of the Department of Finance and Administration” in (c)(1).

2-9-108. Budget.

  1. The Arkansas Catfish Promotion Board shall prepare an annual budget, a copy of which shall be maintained at the principal office of the board and shall be open for public inspection during business hours.
  2. The board shall be audited annually in accordance with generally accepted auditing procedures, and a copy of the audit shall be filed with the Legislative Joint Auditing Committee.

History. Acts 1999, No. 790, § 9.

2-9-109. Assessment records.

    1. Every person required to pay the assessment provided for in this chapter shall keep a complete and accurate record of all catfish feed handled by him or her.
    2. The records shall be in such form and contain other information as the Arkansas Catfish Promotion Board shall prescribe by rule.
    3. The records shall be preserved for a period of two (2) years and shall be offered for inspection at any time upon written demand by the Secretary of the Department of Finance and Administration or his or her authorized agent or representative.
    1. At such times as the secretary may require, every person required to pay the assessment provided for in this chapter shall submit reports or otherwise document any information deemed necessary for the efficient collection of the assessment imposed in this chapter.
    2. The secretary has the power to cause any authorized agent or representative to enter upon the premises of any person required to pay the assessment provided for in this chapter and examine or cause to be examined by the agent any books, papers, and records which deal in any way with the payment of the assessment or enforcement of the provisions of this chapter.

History. Acts 1999, No. 790, § 10; 2019, No. 315, § 6; 2019, No. 910, §§ 3268, 3269.

Amendments. The 2019 amendment by No. 315 deleted “or regulation” following “rule” in (a)(2).

The 2019 amendment by No. 910 substituted “Secretary of the Department of Finance and Administration” for “Director of the Department of Finance and Administration” in (a)(3); and substituted “secretary” for “director” in (b)(1) and (2).

2-9-110. Assessment refund.

  1. So long as the assessment on the sale of catfish feed continues to be levied as provided in this chapter, any catfish producer may request and receive a refund of such assessment, provided he or she makes a written application therefor with the Secretary of the Department of Finance and Administration within sixty (60) calendar days after the date of sale, supported by copies of sales slips from the seller of the catfish feed and a refund form approved by the Arkansas Catfish Promotion Board.
  2. The secretary shall create and approve a refund claim form.

History. Acts 1999, No. 790, § 11; 2019, No. 910, § 3270.

Amendments. The 2019 amendment substituted “Secretary of the Department of Finance and Administration” for “Director of the Department of Finance and Administration” in (a); and substituted “secretary” for “director” in (b).

2-9-111. Penalty.

    1. Any seller who fails to file a report, collect an assessment, or remit any assessment when due shall pay a penalty not to exceed five percent (5%) of the amount of the assessment that should have been collected or remitted, plus an additional penalty not to exceed one percent (1%) of the amount of the assessment that should have been collected or remitted for each month of delay, or fraction of a month, after the first month the report was required to be filed or the assessment became due.
    2. The penalty shall be paid to the Secretary of the Department of Finance and Administration and shall be disposed of in the same manner as funds derived from the payment of an assessment as provided in this chapter.
  1. The secretary shall collect the penalties levied in this section, together with the delinquent assessment, by any or all of the following methods:
    1. Voluntary payment; or
    2. Legal proceedings instituted in a court of competent jurisdiction seeking any remedies available, including, but not limited to, injunctive relief to enjoin any seller owing the assessment or penalties from engaging in business as a seller of catfish feed until the amount of the assessment due and all penalties are paid.
  2. Any person required to pay the assessment provided for in this chapter who refuses to allow full inspection of the premises or any book, record, or other document relating to the liability of the person for the assessment imposed or who shall hinder or in any way delay or prevent the inspection shall be guilty of a violation punishable by a fine not exceeding five hundred dollars ($500).

History. Acts 1999, No. 790, § 3; 2005, No. 1994, § 5; 2019, No. 910, § 3271.

Amendments. The 2005 amendment substituted “or” for “and” in (b)(1); and substituted “violation” for “misdemeanor” in (c).

The 2019 amendment substituted “Secretary of the Department of Finance and Administration” for “Director of the Department of Finance and Administration” in (a)(2); and substituted “secretary” for “director” in the introductory language of (b).

2-9-112. Arkansas Catfish Promotion Fund.

  1. There is created on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State, the Arkansas Catfish Promotion Fund.
  2. The fund shall consist of those special revenues from assessments as specified in this chapter, there to be used in such manner as the Arkansas Catfish Promotion Board deems appropriate for Arkansas catfish promotion and research and for the operation and maintenance of the board office and payment of expenses of the board members as set out in § 2-9-103.

History. Acts 1999, No. 790, § 12.

Chapter 10 Arkansas Milk Stabilization Board

Subchapter 1 — Arkansas Milk Stabilization Board Act

Effective Dates. Acts 2007, No. 754, § 2: Apr. 2, 2007. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that the dairy industry in this state is a valuable industry providing a product that is necessary for good nutrition; that the ability of dairy farms to provide a stable supply of pure and wholesome milk is a matter of great importance to the health and welfare of the people of this state; that the recent, dramatic price fluctuations threaten the viability and stability of the dairy industry of this state; that in order to safeguard this industry, a milk stabilization board must immediately be created and a viable plan for the dairy industry submitted to the Legislative Council for its approval. Therefore, an emergency is declared to exist and this act being immediately necessary for the preservation of the public peace, health, and safety shall become effective on: (1) The date of its approval by the Governor; (2) If the bill is neither approved nor vetoed by the Governor, the expiration of the period of time during which the Governor may veto the bill; or (3) If the bill is vetoed by the Governor and the veto is overridden, the date the last house overrides the veto.”

Acts 2019, No. 910, § 6346(b): July 1, 2019. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that this act revises the duties of certain state entities; that this act establishes new departments of the state; that these revisions impact the expenses and operations of state government; and that the sections of this act other than the two uncodified sections of this act preceding the emergency clause titled ‘Funding and classification of cabinet-level department secretaries’ and ‘Transformation and Efficiencies Act transition team’ should become effective at the beginning of the fiscal year to allow for implementation of the new provisions at the beginning of the fiscal year. Therefore, an emergency is declared to exist, and Sections 1 through 6343 of this act being necessary for the preservation of the public peace, health, and safety shall become effective on July 1, 2019”.

2-10-101. Title.

This subchapter shall be known and may be cited as the “Arkansas Milk Stabilization Board Act”.

History. Acts 2007, No. 754, § 1.

2-10-102. Findings — Purposes.

  1. The General Assembly finds that:
    1. The dairy industry is an essential agricultural activity of the State of Arkansas;
    2. Dairy farms, associated suppliers, marketers, processors, and retailers are an integral component of the state's economy;
    3. The ability of a dairy farm, associated supplier, marketer, processor, and retailer to provide a stable, local supply of pure and wholesome milk is a matter of great importance to the health and welfare of the people of this state;
    4. Dairy farms are an integral part of the state's rural communities;
    5. Dairy farms preserve land for agricultural purposes and provide needed economic stimuli for rural communities;
    6. Assurance of a fair and equitable price for dairy farmers ensures their ability to provide milk to the market and the vitality of the state's dairy industry and all the associated benefits of the industry;
    7. Recent, dramatic price fluctuations, with a pronounced downward trend, threaten the viability and stability of the dairy industry of this state; and
    8. The federal order system, implemented by the Agricultural Marketing Agreement Act of 1937, 7 U.S.C. § 601 et seq., established only minimum prices paid to producers for raw milk, without preempting the power of the state to regulate milk prices above the minimum levels so established.
  2. The purposes of this subchapter are to:
    1. Take all necessary steps to assure the continued viability of dairy farming in the state;
    2. Assure consumers of an adequate, local supply of pure and wholesome milk;
    3. Neither displace the federal order system nor encourage the merging of federal orders; and
    4. Encourage increased production to meet the state's need for quality milk.

History. Acts 2007, No. 754, § 1.

2-10-103. Arkansas Milk Stabilization Board.

  1. There is created no later than July 1, 2007, the Arkansas Milk Stabilization Board, to be composed of five (5) members appointed by the Governor as follows:
    1. Two (2) members who are actively and principally engaged in dairy farming in this state;
    2. One (1) member who is an Arkansas consumer;
    3. One (1) member who is an Arkansas milk processor; and
    4. One (1) member who is an Arkansas retailer.
  2. Each member appointed to the board shall be appointed for a term of five (5) years except that the initial members of the board shall be appointed for terms that result in:
    1. One (1) member's term expiring after one (1) year;
    2. One (1) member's term expiring after two (2) years;
    3. One (1) member's term expiring after three (3) years;
    4. One (1) member's term expiring after four (4) years; and
    5. One (1) member's term expiring after five (5) years.
  3. Members of the board shall draw lots to determine the length of the initial term.
    1. Not less than thirty (30) calendar days before the expiration of the terms of the members of the board under subdivisions (a)(1) and (a)(4) of this section, interested parties shall submit to the Governor the names of nominees for the positions to be filled, and the Governor shall appoint the new members from each list of nominees.
    2. If no lists are submitted, the appointments shall be at the discretion of the Governor.
    3. Each member selected for the board shall serve for a term of five (5) years except as provided in subsection (b) of this section and until his or her successor is selected as provided in this subsection.
    4. A member of the board may be removed by a majority vote of the remaining board members for:
      1. Conviction of a felony;
      2. Failing to attend three (3) consecutive meetings; or
      3. No longer meeting the qualifications for his or her initial appointment.
  4. Upon a vacancy of a member of the board, the Governor shall make a new appointment within thirty (30) days.
  5. Members of the board shall organize immediately after their appointment and shall elect a chair, a vice chair, and a secretary-treasurer from the membership of the board, whose duties shall be those customarily exercised by those officers or specifically designated by the board.
    1. Meetings of the board shall be called by the chair or by four (4) members of the board.
    2. Four (4) members of the board shall constitute a quorum for the transaction of business of the board.
  6. The members of the board shall receive no salary or other compensation for their services except that they may receive expense reimbursement in accordance with § 25-16-901 et seq. for attending meetings of the board.
  7. The Secretary of the Department of Agriculture shall assist the board when necessary by providing resources and guidance.

History. Acts 2007, No. 754, § 1; 2019, No. 910, § 11.

Amendments. The 2019 amendment, in (i), substituted “Department of Agriculture” for “Arkansas Agriculture Department” and deleted “and the Deputy Director of the Arkansas Livestock and Poultry Commission” preceding “shall assist”.

2-10-104. Powers and duties of the Arkansas Milk Stabilization Board.

  1. The Arkansas Milk Stabilization Board shall:
    1. Administer this subchapter;
    2. Research other states to determine how those states support their dairy farmers;
    3. Investigate methods of milk production, dairy pricing, and support of the dairy industry;
    4. Create a plan to assist Arkansas dairy farmers that would be equitable to all parties in the state dairy industry and withstand legal challenges;
    5. [Repealed.]
    6. Provide a forty-five-day period for public comment on the proposed plan provided in subdivision (a)(5) of this section;
    7. Create the final plan for submission to the Legislative Council following the public comment period; and
    8. Promulgate rules the board considers necessary or desirable to implement the final plan determined in subdivision (a)(7) of this section.
  2. The board shall submit its final plan as determined under subdivision (a)(7) of this section and rules as determined under subdivision (a)(8) of this section to the Legislative Council for review no later than March 1, 2008.
    1. Once reviewed by the Legislative Council, the Department of Agriculture shall implement the plan.
    2. The board shall monitor progress and success of the plan.
  3. The board shall have jurisdiction over milk and milk products marketed in the State of Arkansas.

History. Acts 2007, No. 754, § 1; 2019, No. 910, §§ 12, 13.

Amendments. The 2019 amendment repealed (a)(5); and substituted “Department of Agriculture” for “Arkansas Agriculture Department” in (c)(1).

Subchapter 2 — Dairy Stabilization Grant Act

Effective Dates. Acts 2019, No. 910, § 6346(b): July 1, 2019. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that this act revises the duties of certain state entities; that this act establishes new departments of the state; that these revisions impact the expenses and operations of state government; and that the sections of this act other than the two uncodified sections of this act preceding the emergency clause titled ‘Funding and classification of cabinet-level department secretaries’ and ‘Transformation and Efficiencies Act transition team’ should become effective at the beginning of the fiscal year to allow for implementation of the new provisions at the beginning of the fiscal year. Therefore, an emergency is declared to exist, and Sections 1 through 6343 of this act being necessary for the preservation of the public peace, health, and safety shall become effective on July 1, 2019”.

2-10-201. Findings — Intent.

  1. The General Assembly finds that:
    1. The State of Arkansas is at risk of losing its dairy industry if immediate legislative action is not taken to reduce the sharp decline in the number of its dairy farms; and
    2. The loss of the dairy industry in Arkansas will result not only in the demise of dairy farming but also in significantly higher milk cost to Arkansas's citizens, including its children, and a loss of jobs in the processing of milk products.
  2. The intent of this subchapter is to:
    1. Prevent harm to Arkansas's consumers and dairy industry;
    2. Establish the Dairy Stabilization Program, which will safeguard the interests of dairy producers in this state;
    3. Ensure that dairy producers receive fair market breakeven prices;
    4. Provide consumers a continuous and affordable supply of Arkansas-produced fluid milk and other dairy products;
    5. Reverse the loss of dairy farms in the state;
    6. Significantly curtail the increase in milk prices to the consumer by helping to ensure in-state production; and
    7. Maintain and potentially increase jobs in the processing of milk products by stabilizing prices to dairy farmers.

History. Acts 2009, No. 968, § 1.

2-10-202. Definition.

As used in this subchapter, “milk producer” means a person or entity that operates a bovine dairy farm that possesses a valid permit signed by the administrator of the Arkansas Grade “A” Milk Program.

History. Acts 2009, No. 968, § 1.

2-10-203. Dairy Stabilization Grant.

  1. The Dairy Stabilization Grant is created.
      1. If funds are available, the Secretary of the Department of Agriculture shall calculate monthly the difference between the average monthly blend price of milk received by Arkansas milk producers as estimated by the secretary and seventy percent (70%) of the average monthly cost of producing milk in Missouri and Tennessee as estimated by the United States Department of Agriculture.
      2. If the average monthly blend price of milk received by Arkansas milk producers is lower than seventy percent (70%) of the calculated average cost of producing milk in Missouri and Tennessee, the milk producer is eligible for a monthly Dairy Stabilization Grant in the amount of the difference, which will be paid quarterly. The secretary shall pay the milk producer by the fifteenth day of the month following the end of the quarter.
    1. The secretary shall not pay a milk producer more than five dollars ($5.00) per hundred weight of milk per month under subdivision (b)(1) of this section.
  2. Grants received by a milk producer under this section shall not exceed an annual average of two dollars ($2.00) per hundred weight of milk.
  3. Grants authorized by the secretary shall be made to the milk producer from moneys appropriated by the General Assembly for that purpose.

History. Acts 2009, No. 968, § 1; 2019, No. 910, § 14.

Amendments. The 2019 amendment substituted “Department of Agriculture” for “Arkansas Agriculture Department” in (b)(1)(A).

2-10-204. Milk production and quality incentives.

  1. If funds are available, as an incentive to continue milk production and to improve milk quality, the Secretary of the Department of Agriculture may pay a milk producer the following incentive payments:
      1. Fifty cents (50¢) per hundred weight of milk for each hundred weight of milk produced above the milk producer's average annual milk production.
      2. A milk producer's average annual milk production specified under subdivision (a)(1)(A) of this section shall be calculated over the two (2) years preceding the year of disbursement; and
    1. Fifty cents (50¢) per hundred weight of milk if the milk contains a somatic cell count of less than four hundred thousand (400,000).
  2. A milk producer that begins milk production after July 31, 2009, qualifies for payments under subsection (a) of this section after the completion of one (1) continuous year of milk production in Arkansas.
  3. Annual payments to a milk producer under this section shall not exceed fifty thousand dollars ($50,000).
  4. If funds are available, the secretary shall pay the annual production and quality incentive payments to the eligible milk producers by January 15 of the following year.

History. Acts 2009, No. 968, § 1; 2011, No. 776, § 1; 2019, No. 910, § 15.

Amendments. The 2011 amendment substituted “a somatic cell count of less than four hundred thousand (400,000)” for “less than four-hundred-thousand somatic cell count” in (a)(2).

The 2019 amendment substituted “Department of Agriculture” for “Arkansas Agriculture Department” in the introductory language of (a).

2-10-205. Rules.

The Secretary of the Department of Finance and Administration and the Secretary of the Department of Agriculture shall adopt rules to implement this subchapter.

History. Acts 2009, No. 968, § 1; 2019, No. 910, § 16.

Amendments. The 2019 amendment substituted “Secretary of the Department of Finance and Administration” for “Director of the Department of Finance and Administration” and “Department of Agriculture” for “Arkansas Agriculture Department”.

Chapter 11 Agritourism Act

2-11-101. Title.

This chapter shall be known and may be cited as the “Agritourism Act”.

History. Acts 2011, No. 1024, § 1.

2-11-102. Legislative intent — Construction — Purpose.

  1. It is the intent of this chapter to:
    1. Promote rural tourism and rural economic development by encouraging owners or operators of farms, ranches, and other rural land or attractions, including historic, cultural, and natural attractions, to invite members of the public to view, observe, and participate in the operations and attractions for educational, entertainment, or recreational purposes; and
    2. Encourage agritourism activities by limiting civil liability of those engaged in agritourism or providing the activities of agritourism.
  2. This chapter shall be liberally construed to carry out the purposes described in subsection (a) of this section.

History. Acts 2011, No. 1024, § 1.

2-11-103. Definitions.

As used in this chapter:

  1. “Agribusiness operation” means an agricultural, horticultural, viticultural, forestry, dairy, livestock, poultry, bee, or any other farm, ranch, plantation, or range business operation;
    1. “Agritourism activity” means an interactive or passive activity carried out with or without payment to an agritourism activity operator on a farm, ranch, or agribusiness operation related to agriculture, food production, historic traditions, or nature-watching conducted by an agritourism activity operator for the education, entertainment, or recreation of participants.
    2. “Agritourism activity” includes without limitation:
      1. A farming or ranching activity;
      2. The viewing of historic, cultural, or natural attractions;
      3. A harvest-your-own activity;
      4. Nature-watching; and
      5. An activity involving an animal exhibition at an agricultural fair.
    3. “Agritourism activity” does not include:
      1. A roadside fruit and vegetable stand; or
      2. An operation exclusively devoted to the sale of merchandise or food at retail;
  2. “Agritourism activity operator” means an individual or entity that provides the facilities and equipment necessary to participate in an agritourism activity;
  3. “Inherent risk” means dangers or conditions that are an integral part of an agritourism activity, including without limitation:
    1. The propensity of a wild or domestic animal to behave in ways that may result in injury, harm, or death to persons on or around the wild or domestic animal;
    2. Hazards such as surface and subsurface conditions;
    3. Natural conditions of land, vegetation, and waters;
    4. Ordinary dangers of structures or equipment used in farming or ranching operations; and
    5. The potential of a participant to act in a negligent way that may contribute to injury to the participant or others, whether failing to follow safety procedures or failing to act with reasonable caution while engaging in the agritourism activity; and
  4. “Participant” is defined as a person, other than the agritourism activity operator, who engages in an agritourism activity.

History. Acts 2011, No. 1024, § 1.

2-11-104. Assumption of risk by participant.

Except as provided in § 2-11-105, a participant assumes the inherent risk of an agritourism activity by engaging in the agritourism activity.

History. Acts 2011, No. 1024, § 1.

2-11-105. Liability of agritourism activity operator.

This chapter shall not prevent or limit the liability of an agritourism activity operator if the agritourism activity operator or an agent of the agritourism activity operator:

  1. Commits an act or omission of gross negligence concerning the safety of a participant that proximately causes injury, damage, or death to the participant;
  2. Has actual knowledge of a dangerous condition on the land, facilities, or equipment used in the activity or the dangerous propensity of a particular animal used in the activity that proximately causes injury, damage, or death to the participant and does not make the danger known to the participant that proximately causes injury, damage, or death to the participant;
  3. Intentionally injures a participant; or
  4. Commits other acts, errors, or omissions that constitute willful or wanton misconduct, gross negligence, or criminal conduct that proximately causes injury, damage, or death.

History. Acts 2011, No. 1024, § 1.

2-11-106. Limitation of liability.

  1. An agritourism activity operator or participant is not liable for damages arising from the personal injury or death of a participant if:
    1. The injury or death results from an inherent risk; and
    2. The warning contained in § 2-11-107 is posted.
  2. The limitation of liability provided by this section is in addition to any other limitation of liability provided by law.

History. Acts 2011, No. 1024, § 1; 2013, No. 1122, § 1.

Amendments. The 2013 amendment substituted “of” for “on” in the introductory language.

2-11-107. Warning required.

  1. At each agritourism activity, the agritourism activity operator shall post and maintain signage in a clearly visible location at or near the main entrance to the agritourism activity and in black letters at least one inch (1") in height containing the following warning:
  2. The agritourism activity operator shall include, in clearly visible print, the warning contained in subsection (a) of this section in a written contract between the agritourism activity operator and each participant.
  3. At each agritourism activity, the agritourism operator shall post and maintain signage of a specific or known hazard in the particular area on or surrounding the agritourism activity.

“WARNING — Under Arkansas law, an agritourism activity operator is not liable for the injury or death of a participant in an agritourism activity resulting from the inherent risk of agritourism activities. Inherent risks include without limitation the risk of animals, weather, land conditions, and the potential for you as a participant to act in a negligent way that may contribute to your own injury or death. You are assuming the risk of participating in this agritourism activity.”

History. Acts 2011, No. 1024, § 1.

Chapters 12-14

[Reserved.]

Subtitle 2. Agronomy

Chapter 15 General Provisions

Subchapter 1 — Arkansas Crop and Research Facility Protection Act

2-15-101. Arkansas Crop and Research Facilities Protection Act.

  1. This section shall be known and may be cited as the “Arkansas Crop and Research Facilities Protection Act”.
    1. Any person or entity who willfully and knowingly damages or destroys any field crop product that is grown for personal or commercial purposes or for testing or research purposes in the context of a product development program in conjunction or coordination with a private research facility or a university or any federal, state, or local government agency shall be liable for twice the value of the crop damaged or destroyed.
    2. In awarding damages under this section, the courts shall consider:
      1. The market value of the crop before damage or destruction; and
      2. Production, research, testing, replacement, and crop development costs directly related to the crop that has been damaged or destroyed as part of the value of the crop.
    3. Damages available under this section shall be limited to:
      1. Twice the market value of the crop before damage or destruction; plus
      2. Twice the actual damages involving production, research, testing, replacement, and crop development costs directly related to the crop that has been damaged or destroyed.
  2. This section shall not apply to any persons or entities when performing construction, land improvements, or excavation work in or upon any public right-of-way, public easement, or utility easement or who in good faith believe they are in or upon the right-of-way or easement.

History. Acts 2001, No. 1025, §§ 1-3.

Research References

U. Ark. Little Rock L. Rev.

Survey of Legislation, 2001 Arkansas General Assembly, Agricultural Law, 24 U. Ark. Little Rock L. Rev. 403.

Subchapter 2 — Arkansas Rice Certification Act

Effective Dates. Acts 2005, No. 1238, § 3: Aug. 1, 2005. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that rices identified as having characteristics of commercial impact may pose an economic threat to the well-being of the people of this state; that the growing, harvesting, and selling of rice is an important part of this state's economy; and that it is necessary for this act to become effective on August 1, 2005, to avoid any additional detriment to this state. Therefore, an emergency is declared to exist and this act being immediately necessary for the preservation of the public peace, health, and safety shall become effective on August 1, 2005.”

Acts 2009, No. 275, § 2: Mar. 3, 2009. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that the Arkansas Rice Certification Act is due to expire on July 1, 2009; that the rice industry is an essential component of the economy of this state; and that the continuation of the Arkansas Rice Certification Act is necessary for the protection of the rice crop in the State of Arkansas. Therefore, an emergency is declared to exist and this act being immediately necessary for the preservation of the public peace, health, and safety shall become effective on: (1) The date of its approval by the Governor; (2) If the bill is neither approved nor vetoed by the Governor, the expiration of the period of time during which the Governor may veto the bill; or (3) If the bill is vetoed by the Governor and the veto is overridden, the date the last house overrides the veto.”

2-15-201. Title.

This subchapter shall be known and may be cited as the “Arkansas Rice Certification Act”.

History. Acts 2005, No. 1238, § 1.

A.C.R.C. Notes. Acts 2009, No. 275, § 1, provided: “Acts 2005, No. 1238 § 2, which states ‘This act shall expire on July 1, 2009’, is hereby repealed.”

2-15-202. Definitions.

As used in this subchapter:

  1. “Characteristics of commercial impact” means characteristics that may adversely affect the marketability of rice in the event of commingling with any other rice and includes, but is not limited to, those characteristics:
    1. That cannot be identified without the aid of specialized equipment or testing;
    2. That create a significant economic impact in their removal from commingled rice; and
    3. Whose removal from commingled rice is not feasible; and
  2. “Person” includes any individual, partnership, limited liability company, limited liability partnership, corporation, firm, company, or any other entity doing business in Arkansas.

History. Acts 2005, No. 1238, § 1.

A.C.R.C. Notes. Acts 2009, No. 275, § 1, provided: “Acts 2005, No. 1238 § 2, which states ‘This act shall expire on July 1, 2009’, is hereby repealed.”

2-15-203. Prohibition of rice with characteristics of commercial impact.

No person may introduce, sell, plant, produce, harvest, transport, store, process, or otherwise handle rice identified as having characteristics of commercial impact, except in compliance with this subchapter and the rules adopted by the State Plant Board.

History. Acts 2005, No. 1238, § 1.

A.C.R.C. Notes. Acts 2009, No. 275, § 1, provided: “Acts 2005, No. 1238 § 2, which states ‘This act shall expire on July 1, 2009’, is hereby repealed.”

2-15-204. Administration — Duties of the State Plant Board.

  1. The State Plant Board shall:
    1. Administer and enforce this subchapter;
    2. Promulgate rules to implement the purposes and requirements of this subchapter, including rules that will establish a penalty matrix for violations of this subchapter and the rules promulgated under this subchapter; and
    3. Receive and investigate complaints regarding alleged violations of this subchapter and rules promulgated by the board.
  2. The board may:
    1. Prohibit or place restrictions on the selling, planting, producing, harvesting, transporting, storing, processing, or other handling of rice identified as having characteristics of commercial impact; and
    2. Charge a reasonable fee to cover the cost of inspections and other activities permitted under this subchapter.
  3. All moneys received by the board under this subchapter and the rules adopted by the board shall be deposited into the Plant Board Fund to be used for carrying out the provisions of this subchapter.

History. Acts 2005, No. 1238, § 1.

A.C.R.C. Notes. Acts 2009, No. 275, § 1, provided: “Acts 2005, No. 1238 § 2, which states ‘This act shall expire on July 1, 2009’, is hereby repealed.”

Cross References. Plant Board Fund, § 19-6-408.

2-15-205. Scientific Review Committee.

  1. The State Plant Board may appoint a Scientific Review Committee.
  2. The committee shall review and make recommendations to the board concerning all matters contained in this subchapter, including:
    1. Identifying rice that has characteristics of commercial impact;
    2. Reviewing rice identified as having characteristics of commercial impact upon receipt of a petition from the purveyor of the rice;
    3. Recommending rules establishing terms and conditions for planting, producing, harvesting, selling, transporting, processing, storing, or otherwise handling rice identified under subdivision (b)(1) of this section; and
    4. Reviewing the efficacy of terms, conditions, and identity preservation programs imposed on the planting, producing, harvesting, transporting, drying, storing, or other handling of rice identified under subdivision (b)(1) of this section, using the most current industry standards and generally accepted scientific principles.

History. Acts 2005, No. 1238, § 1.

A.C.R.C. Notes. Acts 2009, No. 275, § 1, provided: “Acts 2005, No. 1238 § 2, which states ‘This act shall expire on July 1, 2009’, is hereby repealed.”

2-15-206. Violations — Notice.

  1. Upon receiving a complaint alleging that a person has violated this subchapter or a rule of the State Plant Board, the board shall provide notice to the person and an opportunity for the person to respond to the complaint.
  2. If the board determines that the complaint warrants further action, the board shall notify the person in writing of the board's decision.
  3. The board may seek injunctive relief, commence a civil action against the person, or seek other remedies provided by law.

History. Acts 2005, No. 1238, § 1.

A.C.R.C. Notes. Acts 2009, No. 275, § 1, provided: “Acts 2005, No. 1238 § 2, which states ‘This act shall expire on July 1, 2009’, is hereby repealed.”

2-15-207. Exemptions.

The provisions of this subchapter shall not apply to research conducted by a federal, state, or private entity, including an institution of higher education, which conforms to and is in compliance with all state and federal laws and rules for laboratory management practices.

History. Acts 2005, No. 1238, § 1.

A.C.R.C. Notes. Acts 2009, No. 275, § 1, provided: “Acts 2005, No. 1238 § 2, which states ‘This act shall expire on July 1, 2009’, is hereby repealed.”

2-15-208. Penalties.

    1. The State Plant Board may impose a civil penalty for violation of § 2-15-203.
    2. The penalty shall not exceed one hundred thousand dollars ($100,000).
    3. Each day of a continuing violation of § 2-15-203 is a separate violation.
  1. The board may bring an action in any court of competent jurisdiction to collect a penalty under this section and may recover all attorney's fees, costs, and expenses incurred by the board in bringing the action.

History. Acts 2005, No. 1238, § 1.

A.C.R.C. Notes. Acts 2009, No. 275, § 1, provided: “Acts 2005, No. 1238 § 2, which states ‘This act shall expire on July 1, 2009’, is hereby repealed.”

Subchapter 3 — Grain, Soybean, and Peanut Owner's Lien Act

2-15-301. Title.

This subchapter shall be known and may be cited as the “Grain, Soybean, and Peanut Owner's Lien Act”.

History. Acts 2015, No. 1082, § 1.

2-15-302. Definitions.

As used in this subchapter:

  1. “Affiliate” means a person that:
    1. Is directly or indirectly controlled by a first purchaser; or
    2. Directly or indirectly controls a first purchaser;
  2. “Agreement to sell” means an enforceable oral or written agreement by which a grain, soybean, or peanut owner, either directly or through a sales agent, agrees to sell grain, soybeans, or peanuts to a first purchaser;
  3. “Control” or “controlled by” means the direct or indirect possession of the power to direct or cause the direction of the management and policies of a person through ownership, by contract, or otherwise;
  4. “First purchaser” means the first person that purchases grain, soybeans, or peanuts, either directly or indirectly through a sales agent, under an agreement to sell;
  5. “Grain, soybean, or peanut owner” means a person owning an interest in grain, soybeans, or peanuts before the acquisition of the grain, soybeans, or peanuts by a first purchaser;
  6. “Owner's lender” means a person that has a valid mortgage lien or security interest in a grain, soybean, or peanut owner's grain, soybeans, or peanuts at the time the grain, soybeans, or peanuts are delivered to the first purchaser;
  7. “Owner's lien” means a lien granted under this subchapter;
    1. “Permitted lien” means the following liens or security interests:
      1. A mortgage lien or security interest granted by a first purchaser that:
        1. Secures payment under a written instrument of indebtedness signed by the first purchaser and accepted in writing by the payee before July 22, 2015; and
        2. Has a principal amount and a fixed maturity stated in the mortgage lien or security interest; and
      2. A validly perfected and enforceable lien created by statute in relation to grain, soybeans, or peanuts purchased under an agreement to sell that secures payment of indebtedness incurred by the first purchaser before July 22, 2015.
    2. “Permitted lien” does not include a mortgage lien or security interest that:
      1. Secures payment under a written instrument of indebtedness that is modified, amended, or restated from or after July 22, 2015, by a modification, amendment, or restatement that increases the principal amount that is owed on July 22, 2015;
      2. Secures payment under a written instrument of indebtedness that is modified, amended, or restated from or after July 22, 2015, by a modification, amendment, or restatement that extends the stated maturity of the written instrument of indebtedness that is in effect on July 22, 2015; or
      3. Is not validly perfected with a first priority against the claims of all persons under applicable law other than a person holding a statutory or regulatory lien as to which first priority is granted by statute or rule;
  8. “Person” means an individual or business entity, including without limitation an executor, administrator, estate, agent, trust, trustee, institution, receiver, business trust, firm, corporation, partnership, limited liability company, cooperative, joint venture, governmental entity or agency, association, and any other legal entity;
  9. “Proceeds” means:
    1. A right or amount paid or to be paid in consideration of or as a consequence of the sale of grain, soybeans, or peanuts, including without limitation cash proceeds, accounts, chattel paper, instruments, and payment intangibles;
    2. A by-product from the processing of grain, soybeans, or peanuts; and
    3. A right or amount paid or to be paid in consideration of or as a consequence of the sale of a by-product from the processing of grain, soybeans, or peanuts;
  10. “Purchaser” means a person that:
    1. Is not an affiliate of a first purchaser; and
    2. Takes, receives, or purchases grain, soybeans, or peanuts from a first purchaser;
  11. “Sales agent” means a person that is authorized to sell grain, soybeans, or peanuts on behalf of or for the benefit of another person; and
  12. “Sales price” means the amount a first purchaser agrees to pay a grain, soybean, or peanut owner or a sales agent under an agreement to sell.

History. Acts 2015, No. 1082, § 1; 2019, No. 315, § 7.

Amendments. The 2019 amendment substituted “rule” for “regulation” in (8)(B)(iii).

2-15-303. Grain, soybeans, or peanuts lien.

    1. To secure the obligations of a first purchaser to pay the sales price, a grain, soybean, or peanut owner is granted a lien in all grain, soybeans, or peanuts sold by the grain, soybean, or peanut owner for any unpaid portion of the sales price for the grain, soybeans, or peanuts.
    2. The lien granted under this section is granted and shall exist as part of and incident to the ownership of grain, soybeans, or peanuts.
  1. An owner's lien:
    1. Exists in and attaches immediately to all grain, soybeans, or peanuts on July 22, 2015; and
    2. Continues uninterrupted and without lapse:
      1. In all grain, soybeans, or peanuts upon and after the sale of the grain, soybeans, or peanuts; and
      2. In and to all proceeds.
    1. An owner's lien exists until the grain, soybean, or peanut owner or the sales agent entitled to receive the sales price has received the full amount of the sales price.
    2. A security interest or mortgage lien of an owner's lender attaches to the grain, soybean, or peanut owner's right to an owner's lien in grain, soybeans, or peanuts or in proceeds from the sale of the grain, soybeans, or peanuts.
    3. An owner's lender does not waive its security interest or mortgage lien or right in an owner's lien by approving or authorizing the grain, soybean, or peanut owner to sell the grain, soybeans, or peanuts under a sales agreement.
    1. The validity of an owner's lien is not dependent on possession of the grain, soybeans, or peanuts by a grain, soybean, or peanut owner or sales agent.
    2. An owner's lien is not void or expired by reason of a change or transfer of the actual or constructive possession of or title to the grain, soybeans, or peanuts from the grain, soybean, or peanut owner or sales agent to a first purchaser or subsequent purchaser.

History. Acts 2015, No. 1082, § 1.

2-15-304. Perfection of grain, soybean, or peanut lien.

An owner's lien is perfected automatically from July 22, 2015 or the date a sales agreement is executed after July 22, 2015 without the need to file a financing statement or other type of documentation.

History. Acts 2015, No. 1082, § 1.

2-15-305. Commingled grain, soybeans, or peanuts — Priority.

  1. If grain, soybeans, or peanuts subject to an owner's lien are commingled with other grain, soybeans, or peanuts in a manner that the identity of the specific grain, soybeans, or peanuts subject to the owner's lien cannot be determined by reasonable means, the owner's lien continues without interruption into and attaches to the commingled grain, soybeans, or peanuts and is perfected automatically as of the date of its original perfection but only as to the percentage of the commingled grain, soybeans, or peanuts equal to the amount of grain, soybeans, or peanuts to which the owner's lien originally attached.
  2. An owner's lien in commingled grain, soybeans, or peanuts under subsection (a) of this section has priority over any security interest or other lien that is not an owner's lien or permitted lien regardless of whether the security interest or other lien has been properly perfected.
  3. If more than one (1) owner's lien attaches to commingled grain, soybeans, or peanuts, the owners' liens rank equally in the proportion that the respective sales prices secured by each owner's lien bear as a percentage of the total of the sales prices secured by all owners' liens applicable at the time the grain, soybeans, or peanuts were commingled.

History. Acts 2015, No. 1082, § 1.

2-15-306. Transfer of lien — Priority.

    1. A purchaser or sales agent takes free of an owner's lien otherwise applicable to the grain, soybeans, or peanuts purchased and is relieved of any obligations created under § 2-15-303 if the purchaser or sales agent pays the full amount of required consideration for the grain, soybeans, or peanuts under a good faith, noncollusive agreement to purchase the grain, soybeans, or peanuts.
    2. If a purchaser or sales agent pays the full amount of consideration under subdivision (a)(1) of this section, the owner's lien transfers to the proceeds paid by the purchaser or sales agent.
  1. An owner's lien shall continue uninterrupted in the proceeds paid to or otherwise due the first purchaser.
  2. Except as specifically provided in this section, an owner's lien has priority over the rights of a purchaser or sales agent.

History. Acts 2015, No. 1082, § 1.

2-15-307. Lien priority generally.

Except for a permitted lien, an owner's lien takes priority over any other lien regardless of whether the lien arises by contract, law, equity, or otherwise.

History. Acts 2015, No. 1082, § 1.

2-15-308. Applicability.

  1. This subchapter does not affect the time at which legal title to grain, soybeans, or peanuts may pass by agreement or operation of law subject to an owner's lien.
  2. This subchapter does not apply to:
    1. A farm-owned cooperative; or
    2. An entity licensed under the:
      1. United States Warehouse Act, 7 U.S.C. § 241 et seq.; or
      2. Arkansas Public Grain Warehouse Law, § 2-17-201 et seq.

History. Acts 2015, No. 1082, § 1.

2-15-309. Waiver, relinquishment, or release of lien prohibited.

    1. A grain, soybean, or peanut owner shall not be required as a condition or term of an agreement to sell or otherwise to:
      1. Waive, relinquish, or release an owner's lien or any rights under this subchapter other than upon payment in full of the sales price; or
      2. Agree to a provision that would apply the law of a state other than the State of Arkansas with respect to the rights granted under this subchapter.
    2. A waiver, relinquishment, release, or provision that violates subdivision (a)(1) of this section is void as a matter of the public policy of this state.
  1. A grain, soybean, or peanut owner or a sales agent acting on behalf of a grain, soybean, or peanut owner may waive, relinquish, or release an owner's lien or any rights under this subchapter or agree to a provision that would apply the law of a state other than the State of Arkansas with respect to the rights granted under this subchapter if the first purchaser:
    1. Posts a letter of credit in a form and amount satisfactory to the grain, soybean, or peanut owner or sales agent; or
    2. Both:
      1. Executes a contract that is satisfactory to the grain, soybean, or peanut owner or sales agent to prepay or escrow the sales price under an agreement to sell that is satisfactory to the grain, soybean, or peanut owner; and
      2. Performs all of the first purchaser's obligations under the contract.

History. Acts 2015, No. 1082, § 1.

2-15-310. Lien expiration — Action on an owner's lien.

  1. An owner's lien expires one (1) year after the last day of the month following the date the sales price from the sale of grain, soybeans, or peanuts subject to the lien is required by law or contract to be paid to the grain, soybean, or peanut owner but only as to the particular grain, soybeans, or peanuts sold during the month unless an action to enforce the owner's lien is commenced in a court of competent jurisdiction during that time.
  2. If a sales agent advances the sales price for grain, soybeans, or peanuts to the grain, soybean, or peanut owner before the first purchaser pays the sales price in full to the grain, soybean, or peanut owner or sales agent, the sales agent shall assume and may enforce all rights of the grain, soybean, or peanut owner under this subchapter as to the grain, soybeans, or peanuts or the proceeds from the sale of the grain, soybeans, or peanuts.
    1. In addition to any other court of competent jurisdiction, an action to enforce an owner's lien may be commenced in the district court of the county in which the:
      1. Agreement to sell is executed;
      2. Sales price is to be paid;
      3. The grain, soybeans, or peanuts that have not been paid for are located; or
      4. Proceeds may be found.
    2. The commencement of one (1) or more of the following proceedings by or against a person claiming an interest in property subject to an owner's lien tolls the one-year period in which to commence an action to enforce the owner's lien under subsection (a) of this section for an additional period of ninety (90) days from the earlier of the final conclusion or dismissal of the proceedings or the date final relief is obtained from the applicable tribunal authorizing the commencement of the action:
      1. An action seeking to adjudicate the person as bankrupt or insolvent;
      2. An action seeking liquidation, winding up, reorganization, arrangement, adjustment, protection, relief, or composition of the person or the person's debts under any law relating to bankruptcy, insolvency, or reorganization or relief of debtors; or
      3. An action seeking the entry of an order for relief or the appointment of a receiver, trustee, or other similar official for the person or for a substantial part of the person's property.
  3. The prevailing party in an action to enforce this subchapter may recover costs and reasonable attorney's fees in any legal proceeding.
  4. This subchapter does not impair or affect the right of a grain, soybean, or peanut owner or a sales agent to maintain a personal action to recover the debt against a person liable for payment of the sales price or to exercise any other available rights and remedies.

History. Acts 2015, No. 1082, § 1.

2-15-311. Preference.

If this subchapter conflicts with other rights a grain, soybean, or peanut owner may have, the grain, soybean, or peanut owner's right to receive the sales price shall be given preference.

History. Acts 2015, No. 1082, § 1.

Subchapter 4 — Arkansas Industrial Hemp Act

Effective Dates. Acts 2019, No. 910, § 6346(b): July 1, 2019. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that this act revises the duties of certain state entities; that this act establishes new departments of the state; that these revisions impact the expenses and operations of state government; and that the sections of this act other than the two uncodified sections of this act preceding the emergency clause titled ‘Funding and classification of cabinet-level department secretaries’ and ‘Transformation and Efficiencies Act transition team’ should become effective at the beginning of the fiscal year to allow for implementation of the new provisions at the beginning of the fiscal year. Therefore, an emergency is declared to exist, and Sections 1 through 6343 of this act being necessary for the preservation of the public peace, health, and safety shall become effective on July 1, 2019”.

2-15-401. Title.

This act shall be known and may be cited as the “Arkansas Industrial Hemp Act”.

History. Acts 2017, No. 981, § 1.

Meaning of “this act”. Acts 2017, No. 981, codified as §§ 2-15-4012-15-412, 19-6-301, 19-6-835.

2-15-402. Legislative intent.

This subchapter is intended to assist the state in moving to the forefront of industrial hemp production, development, and commercialization of hemp products in agribusiness, alternative fuel production, and other business sectors, both nationally and globally, and to the greatest extent possible.

History. Acts 2017, No. 981, § 1.

2-15-403. Definitions.

As used in this subchapter:

  1. “Agribusiness” means the processing of raw agricultural products, including without limitation timber and industrial hemp, or the performance of value-added functions with regard to raw agricultural products;
  2. “Certified seed” means industrial hemp seed that has been certified as having no more tetrahydrocannabinol concentration than that adopted by federal law under the Controlled Substances Act, 21 U.S.C. § 801 et seq.;
  3. “Grower” means a person licensed to grow industrial hemp by the State Plant Board;
  4. “Hemp product” means a product made from industrial hemp, including without limitation:
    1. Certified seed for cultivation if the seeds originate from industrial hemp varieties;
    2. Cloth;
    3. Cordage;
    4. Fiber;
    5. Food;
    6. Fuel;
    7. Paint;
    8. Paper;
    9. Particleboard;
    10. Plastics; and
    11. Seed, seed meal, and seed oil for consumption;
  5. “Industrial hemp” means all parts and varieties of the plant Cannabis sativa, cultivated or possessed by a licensed grower, whether growing or not, that contain a tetrahydrocannabinol concentration of no more than that adopted by federal law in the Controlled Substances Act, 21 U.S.C. § 801 et seq.;
  6. “Seed research” means research conducted to develop or recreate better strains of industrial hemp, particularly for the purposes of seed production; and
  7. “Tetrahydrocannabinol” means the natural or synthetic equivalents of the substances contained in the plant, or in the resinous extractives of, Cannabis sativa, or any synthetic substances, compounds, salts, or derivatives of the plant or chemicals and their isomers with similar chemical structure and pharmacological activity.

History. Acts 2017, No. 981, § 1.

2-15-404. State Plant Board — Research program.

    1. The State Plant Board may adopt rules to administer the industrial hemp research program and to license persons to grow industrial hemp under this subchapter.
    2. The board may include as part of its rules the establishment of industrial hemp testing criteria and protocols.
    1. The board shall promote research and development concerning industrial hemp and commercial markets for Arkansas industrial hemp and hemp products.
    2. The board may work in conjunction with the Division of Agriculture of the University of Arkansas and the University of Arkansas Cooperative Extension Service regarding industrial hemp research programs.
      1. The board may undertake research concerning industrial hemp production through the establishment and oversight of a ten-year industrial hemp research program.
      2. In conjunction with the Division of Agriculture of the University of Arkansas, the board may create a program consisting primarily of demonstration plots planted and cultivated in this state by growers licensed under this subchapter.
      3. The board may determine the location, and the total number and acreage, of each demonstration plot.
        1. In conducting research under this subchapter, higher tetrahydrocannabinol concentration varieties of industrial hemp may be grown to provide breeding strains to revitalize the production of industrial hemp.
        2. However, tetrahydrocannabinol levels shall not exceed three-tenths of one percent (0.3%).
    3. The board may seek permits or waivers from the United States Drug Enforcement Administration or the appropriate federal agency that are necessary for the advancement of the industrial hemp research program.
    4. In conjunction with the Division of Agriculture of the University of Arkansas, the board may:
      1. Oversee and analyze the growth of industrial hemp by selected and licensed growers for agronomy research and analysis of required soils, growing conditions, and harvest methods relating to the production of industrial hemp that may be suitable for various commercial hemp products, including without limitation industrial hemp seed, paper, clothing, and oils;
      2. Conduct seed research on various types of industrial hemp that are best suited to be grown in Arkansas, including without limitation:
        1. Creation of Arkansas hybrid types of industrial hemp;
        2. Industrial hemp seed availability; and
        3. In-the-ground variety trials and seed production;
      3. Establish a program to recognize certain industrial hemp seed as being Arkansas heritage hemp seed;
      4. Study the economic feasibility of developing an industrial hemp market in various types of industrial hemp that can be grown in the state;
      5. Report on the estimated value-added benefits, including environmental benefits, that Arkansas businesses could reap by having an industrial hemp market of Arkansas-grown industrial hemp varieties in the state;
      6. Study the agronomy research being conducted worldwide relating to industrial hemp varieties, production, and utilization;
      7. Research and promote Arkansas industrial hemp and hemp seed on the world market that can be grown on farms in the state; and
      8. Study the feasibility of attracting federal and private funding for the Arkansas industrial hemp research program.
    5. The board may:
      1. Coordinate with the Arkansas Energy Office of the Division of Environmental Quality to study the use of industrial hemp in new energy technologies, including without limitation:
        1. Evaluation of the use of industrial hemp to generate electricity, and to produce biofuels and other forms of energy resources;
        2. Growth of industrial hemp on reclaimed mine sites;
        3. Use of hemp seed oil in the production of fuels; and
        4. Assessment of the production costs, environmental issues, and costs and benefits involved with the use of industrial hemp for energy; and
      2. Promote awareness of the financial incentives that may be available to agribusiness and manufacturing companies that manufacture industrial hemp into hemp products to:
        1. Attract new businesses to the state;
        2. Create a commercial market for industrial hemp;
        3. Create new job opportunities for Arkansas residents; and
        4. Diversify the agricultural economy of the state.
    6. The research activities under this subchapter shall not:
        1. Subject the industrial hemp research program to criminal liability under the controlled substances laws of the state.
        2. The exemption from criminal liability under subdivision (b)(7)(A)(i) of this section is a limited exemption that shall be strictly construed and that shall not apply to an activity of the industrial hemp research program that is not expressly permitted under this subchapter; or
      1. Amend or repeal by implication a provision of the Uniform Controlled Substances Act, § 5-64-101 et seq.
    7. The board shall notify the Division of Arkansas State Police and each local law enforcement agency with jurisdiction of the duration, size, and location of all industrial hemp demonstration plots.
    8. The board may cooperatively seek funds from both public and private sources to implement the industrial hemp research program created in this subchapter.
    9. By December 31, 2018, and annually thereafter, the board shall report on the status and progress of the industrial hemp research program to the Governor and to the Department of Agriculture.
    10. The board may establish and collect fees to administer the industrial hemp research program.

History. Acts 2017, No. 981, § 1; 2019, No. 140, § 1; 2019, No. 910, §§ 2412-2414.

Amendments. The 2019 amendment by No. 140 added (b)(11).

The 2019 amendment by No. 910 substituted “Division of Environmental Quality” for “Arkansas Department of Environmental Quality” in the introductory language of (b)(6)(A); substituted “Division of Arkansas State Police” for “Department of Arkansas State Police” in (b)(8); and substituted “Department of Agriculture” for “Arkansas Agriculture Department” in (b)(10).

2-15-405. Interagency cooperation.

  1. The Division of Agriculture of the University of Arkansas may provide research and development related services under this subchapter for the State Plant Board, including without limitation:
    1. Testing of industrial hemp;
    2. Processing of documents relating to the program of licensure;
    3. Financial accounting and recordkeeping, and other budgetary functions; and
    4. Meeting coordination and staffing.
    1. The Arkansas Economic Development Commission may work in conjunction with the board to promote:
      1. The development of industrial hemp production in the state; and
      2. The commercialization of hemp products in agribusiness, alternative fuel production, and other business sectors, to the greatest extent possible.
    2. The commission may promote the availability of financial incentives offered by state government for the processing and manufacture of industrial hemp into hemp products in the state, including without limitation incentives offered to interested parties both within and without this state.
  2. Administrative expenses under this section shall be paid from the Arkansas Industrial Hemp Program Fund.

History. Acts 2017, No. 981, § 1.

Cross References. Arkansas Industrial Hemp Program Fund, § 19-6-835.

2-15-406. State Plant Board — Reports.

The State Plant Board may report to the Department of Agriculture concerning industrial hemp policies and practices that may result in the proper legal growing, management, use, and marketing of the state's potential industrial hemp industry, including without limitation:

  1. Federal laws and regulatory constraints;
  2. The economic and financial feasibility of an industrial hemp market in Arkansas;
  3. Arkansas businesses that might use industrial hemp;
  4. Examination of research on industrial hemp production and use;
  5. The potential for globally marketing Arkansas industrial hemp;
  6. A feasibility study of private funding for the Arkansas industrial hemp research program;
  7. Enforcement concerns;
  8. Statutory and regulatory schemes for growing of industrial hemp by private producers; and
  9. Technical support and education about industrial hemp.

History. Acts 2017, No. 981, § 1; 2019, No. 910, § 17.

Amendments. The 2019 amendment substituted “Department of Agriculture” for “Governor and to the Arkansas Agriculture Department” following “may report to the” in the introductory language.

2-15-407. Federal regulations regarding industrial hemp.

  1. The State Plant Board shall adopt the federal rules and regulations that are currently enacted regarding industrial hemp as in effect on January 1, 2017.
  2. This subchapter does not authorize a person to violate any federal rules or regulations.
  3. If any part of this subchapter conflicts with a provision of federal law relating to industrial hemp, the federal provision shall control to the extent of the conflict.

History. Acts 2017, No. 981, § 1.

2-15-408. Industrial hemp licenses.

  1. The State Plant Board may establish a program of annual licensure to allow persons to grow industrial hemp in the state.
    1. The industrial hemp licensure program shall include the following forms of license:
        1. An industrial hemp research program grower license, to allow a person to grow industrial hemp in this state in a controlled fashion solely and exclusively as part of the industrial hemp research program overseen by the board.
        2. A license under subdivision (b)(1)(A)(i) of this section is subject to the receipt of necessary permissions, waivers, or other forms of authentication by the United States Drug Enforcement Administration or another appropriate federal agency under applicable federal laws relating to industrial hemp; and
        1. An industrial hemp grower license to allow a person to grow industrial hemp in this state.
        2. A license under subdivision (b)(1)(B)(i) of this section is subject to the authorization of legal industrial hemp growth and production in the United States under applicable federal laws relating to industrial hemp.
    2. A license issued under this section shall authorize industrial hemp propagation only on the land areas specified in the license.
    1. A person seeking an application to grow industrial hemp, whether as part of the industrial hemp research program or otherwise, shall apply to the board for the appropriate license on a form provided by the board.
    2. The board shall require the applicant to include on the form provided by the board under subdivision (c)(1) of this section the following information, including without limitation:
      1. The name and mailing address of the applicant;
      2. The legal description and global positioning coordinates of the production fields to be used to grow industrial hemp; and
        1. Written consent allowing the board, if a license is ultimately issued to the applicant, to enter onto the premises on which the industrial hemp is grown to conduct physical inspections of industrial hemp planted and grown by the applicant to ensure compliance with this subchapter and rules adopted under this subchapter.
        2. Unless a deficiency is found, the board shall make no more than two (2) physical inspections of the production fields of an industrial hemp licensee.
        3. Tetrahydrocannabinol levels shall be tested as provided in this subchapter.
  2. Each application shall be accompanied by a nonrefundable fee of fifty dollars ($50.00).
  3. The board shall establish a fee not to exceed two hundred dollars ($200) for an:
    1. Initial license; and
    2. Annual renewal license.
    1. For an industrial hemp research program grower licensee, the board may approve licenses for only those growers whose demonstration plots the board determines will advance the goals of the industrial hemp research program.
    2. The board shall base a determination under subdivision (f)(1) of this section on:
      1. Growing conditions;
      2. Location;
      3. Soil type;
      4. Various varieties of industrial hemp that may be suitable for various hemp products; and
      5. Other relevant factors.
  4. The board shall determine the number of acres to be planted under each license.
  5. A copy of or an electronic record of a license issued by the board under this section shall be forwarded immediately to the sheriff of the county in which the industrial hemp location is licensed.
  6. Records, data, and information filed in support of a license application is proprietary and subject to inspection only upon the order of a court of competent jurisdiction.
  7. At the expense of the license holder, the board shall:
    1. Monitor the industrial hemp grown by each license holder;
    2. Provide for random testing of the industrial hemp for compliance with tetrahydrocannabinol levels; and
    3. Provide for other oversight required by the board.

History. Acts 2017, No. 981, § 1.

2-15-409. License required — Records.

    1. A person shall obtain an industrial hemp grower license under this subchapter before planting or growing industrial hemp in this state.
    2. An industrial hemp grower license holder who has planted and grown industrial hemp in this state may sell the industrial hemp to a person engaged in agribusiness or other manufacturing for the purpose of research, processing, or manufacturing that industrial hemp into hemp products.
  1. An industrial hemp grower shall:
    1. Maintain records that reflect compliance with this subchapter and all other state laws regulating the planting and cultivation of industrial hemp;
    2. Retain all industrial hemp production records for at least three (3) years;
    3. Allow industrial hemp crops, throughout sowing, growing, and harvesting, to be inspected by and at the discretion of the State Plant Board or its agents;
    4. File with the board documentation indicating that the industrial hemp seeds planted were of a type and variety certified to have no more tetrahydrocannabinol concentration than that adopted in the federal Controlled Substances Act, 21 U.S.C. § 801 et seq.;
    5. Notify the board of the sale of industrial hemp grown under the license and the names and addresses of the persons to whom the industrial hemp was sold; and
    6. Provide the board with copies of each contract between the licensee and a person to whom industrial hemp was sold.
  2. A person licensed to grow industrial hemp under this subchapter may import and resell industrial hemp seed that has been certified as having no more tetrahydrocannabinol concentration than that adopted in the federal Controlled Substances Act, 21 U.S.C. § 801 et seq.

History. Acts 2017, No. 981, § 1.

2-15-410. Transportation of industrial hemp.

    1. Only an industrial hemp grower licensee or his or her designees or agents may transport industrial hemp off the premises of the licensee.
    2. When transporting industrial hemp off the premises of an industrial hemp grower licensee, the licensee or a designee or agent of the licensee shall carry the licensing documents from the State Plant Board, evidencing that the industrial hemp:
      1. Was grown by a licensee; and
      2. Is from certified seed.
  1. Industrial hemp that is found in this state at any location off the premises of an industrial hemp grower licensee is contraband and subject to seizure by any law enforcement officer, unless the person in possession of the industrial hemp has in his or her possession either:
    1. The proper licensing documents under this subchapter; or
    2. A bill of lading or other proper documentation demonstrating that the industrial hemp was legally imported or is otherwise legally present in this state under applicable state and federal laws relating to industrial hemp.

History. Acts 2017, No. 981, § 1; Acts 2019, No. 378, § 1.

Amendments. The 2019 amendment, in (b)(2), deleted the comma following “A bill of lading” and deleted the comma following “documentation”.

2-15-411. License revocation.

    1. The State Plant Board shall revoke the license of an industrial hemp grower licensee who fails to comply with this subchapter or the rules adopted under this subchapter.
    2. An industrial hemp grower licensee whose license is revoked under subdivision (a)(1) of this section is ineligible for licensure under this subchapter for up to five (5) years after the revocation.
    1. Before revocation of an industrial hemp grower license, the board shall provide the industrial hemp grower licensee notice and an informal hearing before the board to show cause why the license should not be revoked and the licensee's right to grow forfeited.
    2. If a license is revoked and a licensee's right to grow is forfeited as the result of an informal hearing under subdivision (b)(1) of this section, the industrial hemp grower licensee may request a formal administrative hearing before the board.
  1. An industrial hemp grower licensee whose license is revoked may appeal the final order of the board by filing an appeal in the circuit court of the district in which the licensee resides.

History. Acts 2017, No. 981, § 1.

2-15-412. Grant funds.

  1. An industrial hemp grower licensed under this subchapter may receive funds received by the state under the Arkansas Industrial Hemp Program Fund.
  2. The State Plant Board shall adopt rules for applications for grants under this section.

History. Acts 2017, No. 981, § 1.

Chapter 16 Plant Disease and Pest Control

Preambles. Acts 1931, No. 73 contained a preamble which read:

“Whereas, the necessity for high grade planting seed for agricultural crops is hereby recognized, the purpose of this act shall be to enable farmers to secure pure bred agricultural seeds true to variety, free from noxious weed seeds and free from plant diseases transmittable through the agency of planting seed and free from insect infestation … .”

Acts 1971, No. 79 contained a preamble which read:

“Whereas, the Alligator Weed poses a serious threat to the waterways and lands of this state, and the eradication of this plant is essential to the welfare of the State of Arkansas and its people; and

“Whereas, the United States Army Corps of Engineers desires to join with the State Plant Board in providing funds for an Alligator Weed Control Program, but Public Law 89-298 will not permit the Corps of Engineers to enter into this project unless the State of Arkansas shall agree to hold and save the United States free from claims that may occur from control operations … .”

Effective Dates. Acts 1917, No. 414, § 20: effective on passage. Emergency declared. Approved Mar. 28, 1917.

Acts 1927, No. 247, § 3: declared effective on passage.

Acts 1929, No. 197, § 4: effective on passage.

Acts 1939, No. 40, § 3: July 1, 1939.

Acts 1971, No. 79, § 3: Feb. 12, 1971. Emergency clause provided: “It is hereby found and determined by the General Assembly that alligator weed poses a serious threat to the waterways and lands of this state, and that the control and eradication of said alligator weed during its early stages of infestation in this state is of utmost urgency; that the United States Army Corps of Engineers has federal moneys available to assist the State Plant Board in carrying on an Alligator Weed Control and Eradication Program, and that the immediate passage of this act is necessary to enable the State Plant Board to enter into the necessary agreements with the United States Corps of Engineers to hold and save the United States free from claims that may occur from control operations, as required by Public Law 89-298. Therefore, an emergency is hereby declared to exist and this act being immediately necessary for the public peace, health and safety shall be in full force and effect after its passage and approval.”

Acts 1975, No. 409, § 4: Mar. 14, 1975. Emergency clause provided: “It is hereby found and determined by the General Assembly that under the present law the Arkansas Forestry Association has no representation on the State Plant Board; that it is essential to the continued growth, development and success of the forestry industry in this state that it be given representation on the State Plant Board; that this act is designed to increase the membership of the State Plant Board and to provide that the additional member shall be a representative of the Arkansas Forestry Association; that this act should be given effect immediately in order to accomplish its purposes at the earliest possible date. Therefore, an emergency is hereby declared to exist and this act being necessary for the immediate preservation of the public peace, health and safety, shall be in full force and effect from and after its passage and approval.”

Acts 1983, No. 691, § 19: effective on close of business, June 30, 1983. Emergency clause provided: “It is hereby found and determined by the General Assembly that the various boards, commissions, departments, agencies, and services transferred to the Department of Commerce under the provisions of Acts 1971, No. 38, as amended, could perform their duties more efficiently as independent agencies; that the agencies and services consolidated within the Department of Commerce under Acts 1971, No. 38, are so diverse in their purposes and duties that it is difficult for the Administrator of said Department to exert leadership in the operation of such agencies and programs; and, that the abolishment of the Department of Commerce and its central services would result in financial savings which could be best used for the support and operation of other essential services of government, and that the immediate passage of this act is necessary to provide for the repeal of the Department of Commerce and for the transition of the various departments, agencies, boards, commissions, and programs and services within said Department to an independent status, as provided herein. Therefore, an emergency is hereby declared to exist and this act, being immediately necessary for the preservation of the public peace, health, and safety, shall be in full force and effect as follows: Section 15 of this act shall be effective from and after March 1, 1983, and the remaining provisions of this act shall be effective on the close of business June 30, 1983 and thereafter.”

Research References

Am. Jur. 3 Am. Jur. 2d, Agri., § 39 et seq.

C.J.S. 3 C.J.S., Agri., §§ 88 et seq., 102 et seq., 115 et seq.

Subchapter 1 — General Provisions

Effective Dates. Acts 1993, No. 783, § 13: Mar. 29, 1993. Emergency clause provided: “It is hereby found and determined by the Seventy-Ninth General Assembly meeting in Regular Session that the provisions of this act are of critical importance to the state's ability to continue the duties, responsibilities, and functions of the State Plant Board. Therefore, an emergency is hereby declared to exist and this act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after its passage and approval.”

Acts 1993, No. 1262, § 8: July 1, 1993. Emergency clause provided: “It is hereby found and determined by the Seventy-Ninth General Assembly, that the Constitution of the State of Arkansas prohibits the appropriation of funds for more than a two (2) year period; that the effectiveness of this Act on July 1, 1993 is essential to the operation of the agency for which the appropriations in this Act are provided, and that in the event of an extension of the Regular Session, the delay in the effective date of this Act beyond July 1, 1993 could work irreparable harm upon the proper administration and provision of essential governmental programs. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after July 1, 1993.”

Acts 1995, No. 1304, § 8: Apr. 14, 1995. Emergency clause provided: “It is hereby found and determined by the General Assembly that the provisions of this act are of critical importance to the state's ability to continue the duties, responsibilities, and functions of the Arkansas Bureau of Standards. Therefor [sic], an emergency is hereby declared to exist and this act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after its passage and approval.”

2-16-101. Destruction of trees — Compensation.

  1. The owner of any valuable pear trees, cedar trees, or other growing trees of real value which have been or may hereafter be cut down and destroyed without his or her consent by the order and direction of the State Plant Board, or by its officers, employees, agents, or inspectors, shall be entitled to compensation for the actual value of the trees cut down or destroyed, to be paid by the county in which the trees were growing.
    1. The owner of the trees shall present to the county court his or her claim in writing, verified by his or her affidavit, stating the kind, number, and value of the trees and when and by what authority the trees were destroyed.
    2. The court shall allow from the county general fund such sum as the evidence shows the claimant is entitled to receive.

History. Acts 1927, No. 247, §§ 1, 2; Pope's Dig., §§ 2645, 2646; A.S.A. 1947, §§ 77-129, 77-130.

2-16-102. Date stamped on cotton insecticides — Penalty.

  1. Every person, firm, or corporation bagging any commercial cotton insecticide or poison shall stamp on each bag or on a tag attached to each bag the date on which the insecticide or poison was manufactured.
    1. Any person, firm, or corporation failing or refusing to comply with the requirements of this section shall be guilty of a violation and upon conviction shall be fined in any sum not less than five dollars ($5.00) nor more than one hundred dollars ($100).
    2. Each bag or other container that is shipped without first having the date placed on the bag or container shall be a separate offense.

History. Acts 1959, No. 458, §§ 1, 2; A.S.A. 1947, §§ 77-212, 77-213; Acts 2005, No. 1994, § 6.

Publisher's Notes. Acts 1959, No. 458, §§ 1, 2, are also codified as § 20-20-101.

Amendments. The 2005 amendment substituted “violation” for “misdemeanor” in (b)(1); and substituted “the date placed” for “placed the date” in (b)(2).

2-16-103. Alligator weed agreements.

The State Plant Board is authorized to enter into agreements with the United States Army Corps of Engineers to hold and save the United States free from claims that may occur from control operations jointly carried on by the board and the United States Army Corps of Engineers, or carried on by the board under financial assistance from the United States Army Corps of Engineers for the control and eradication of alligator weed in Arkansas.

History. Acts 1971, No. 79, § 1; A.S.A. 1947, § 77-139.

2-16-104. Disposition of funds.

  1. All fees, interest, penalties, and costs collected by the State Plant Board as authorized by law shall be deposited into the State Treasury on or before the fifth day of the month next following the month of collection thereof.
  2. Upon receipt of the funds, the Treasurer of State shall, after deducting therefrom the collection charge authorized by law, credit the net amount to the credit of the Plant Board Fund to be used for the maintenance, operation, and improvement of the board.
  3. All fees, fines, penalties, moneys, and funds arising from all sources resulting from the enforcement, operation, investigation, application, and administration of the laws under the jurisdiction of the Arkansas Bureau of Standards of the State Plant Board and the sale of property resulting from said purposes, and all moneys, grants, and other sources of funding procured for the bureau, shall be deposited into the Plant Board Fund, or any successor fund, to be used solely for the maintenance, operation, and improvement of the bureau.

History. Acts 1957, No. 417, § 1; A.S.A. 1947, § 77-138; Acts 1995, No. 1304, § 4.

2-16-105. Fire Ant Poison Cost Sharing Program.

    1. There is hereby established a program to be known as the “Fire Ant Poison Cost Sharing Program”.
    2. This program shall be administered by the State Plant Board; which shall have the authority to establish the necessary rules and procedures for the administration of the program.
    1. The board shall purchase the necessary chemicals for the eradication of fire ants and distribute such chemicals to the various counties of the state based upon the requests received from eligible purchasers in the county.
    2. The chemicals made available by the board shall become the responsibility of the county judge who shall oversee the safe storage and distribution of such chemicals under the direction of the University of Arkansas Cooperative Extension Service.
    1. It shall be the duty of the University of Arkansas Cooperative Extension Service to collect moneys received from the distribution and sale of such fire ant poison chemicals as determined by the board, and remit such moneys to the board on a monthly basis.
    2. The moneys generated from the sale of fire ant poison chemicals and received by the board from the University of Arkansas Cooperative Extension Service shall be deposited into the State Treasury to the credit of the Plant Board Fund as a nonrevenue receipt refund to expenditure, there to be used by the board to purchase additional fire ant poison chemicals for distribution to the various counties of the state for fire ant control.

History. Acts 1993, No. 1262, § 2.

2-16-106. Recovery of quarantine costs.

The State Plant Board is empowered to recover any identifiable expenses from the owner or other person in possession or control of the property upon which it enforces, maintains, and administers any quarantine that is imposed due to infestations or infections of insect pests, diseases, or noxious weeds. Whenever the owner or other person cannot be found or shall fail, neglect, or refuse to reimburse the board for incurred quarantine expenses, the board shall have and enforce a lien for such expenses upon the property upon which it enforces, maintains, or administers any quarantine, in the same manner as liens are had and enforced upon property for labor and materials furnished by virtue of contract with the owner.

History. Acts 1993, No. 783, § 8.

2-16-107. Rules.

The State Plant Board is hereby authorized to promulgate such rules as are necessary to administer the fees, rates, tolls, or charges for services established by §§ 2-16-407(f), 2-17-213, 2-17-238, 2-19-209(a), and 2-19-307(a) and is directed to prescribe and collect such fees, rates, tolls, or charges for the services delivered by the board in such manner as may be necessary to support the programs of the board as directed by the Governor and the General Assembly.

History. Acts 1993, No. 783, § 9.

2-16-108. State Plant Board Operations and Facilities Construction Fund — Definitions.

  1. As used in this section:
    1. “Board” means the State Plant Board; and
    2. “Fund” means the State Plant Board Operations and Facilities Construction Fund.
    1. There is created in accordance with §§ 19-4-801 — 19-4-803, 19-4-805, and 19-4-806 and the Revenue Classification Law, § 19-6-101 et seq., a cash fund entitled the State Plant Board Operations and Facilities Construction Fund, which shall be maintained in such depository bank or banks as may be designated from time to time by the board.
      1. The first two hundred thousand dollars ($200,000) in each fiscal year of all fees, interest, penalities, and costs collected by the board that constitute the special revenues specified in § 19-6-301(51) and all income, interest, and earnings thereof are declared to be cash funds to be used solely for paying the cost of operations and maintenance of the board and the financing of the acquisition, construction, and maintenance of facilities for the board's operations, including any additions, extensions, and improvements thereto, the renovation thereof, and the equipping of such facilities.
      2. Such cash funds shall not be deemed to be a part of the State Treasury for any purpose, including, without limitation, the provisions of Arkansas Constitution, Article 5, § 29, Article 16, § 12, or Arkansas Constitution, Amendment 20, or any other constitutional or statutory provision.
    2. The fund shall be held and the amounts therein invested by the board in accordance with the laws of the state pertaining to cash funds. The board may also pledge and use moneys in the fund to provide for the repayment of obligations issued by the Arkansas Development Finance Authority under the State Agencies Facilities Acquisition Act of 1991, § 22-3-1401 et seq., to accomplish the purposes specified in subdivision (b)(2)(A) of this section and to pay the costs and expenses related to the issuance of such obligations.
  2. The provisions of §§ 22-3-1402(c) [repealed] and 22-3-1406 [repealed] shall not be applicable in any respect to the acquisition, construction, extension, or renovation of or the equipping of facilities for the board and shall not under any circumstances constitute a limitation on or prohibition to the financing of the capital improvements by the authority.
  3. On July 30, 1999, all moneys then held in the Plant Board Fund created by § 19-6-408 that were derived from the special revenues described in subdivision (b)(2)(A) of this section shall be transferred to the State Plant Board Operations and Facilities Construction Fund, except that the amount transferred shall not exceed the maximum amount provided in subdivision (b)(2)(A) of this section.

History. Acts 1999, No. 846, § 1; 2001, No. 1553, § 28.

A.C.R.C. Notes. This section was transferred by Acts 2001, No. 1553, § 28 and was formerly codified as §§ 19-5-109219-5-1094.

2-16-109. Turf purchased with state moneys — Definition.

  1. As used in this section, “turf” means field-cultivated turf grass sod consisting of grass varieties tested by the National Turfgrass Evaluation Program.
  2. Turf shall be certified by the State Plant Board if the turf is:
    1. Purchased with state moneys, either directly or indirectly; or
    2. Used in a project conducted:
      1. By a state agency, department, board, or commission; or
      2. Under a contract with the State of Arkansas.
  3. Cool seasons variety blends of turf shall be grown from blue tag certified seed under the blue tag certification program of the Association of Official Seed Certifying Agencies.

History. Acts 2005, No. 1264, § 1.

Subchapter 2 — Plant Act of 1917

Effective Dates. Acts 1997, No. 250, § 258: Feb. 24, 1997. Emergency clause provided: “It is hereby found and determined by the General Assembly that Act 1211 of 1995 established the procedure for all state boards and commissions to follow regarding reimbursement of expenses and stipends for board members; that this act amends various sections of the Arkansas Code which are in conflict with the Act 1211 of 1995; and that until this cleanup act becomes effective conflicting laws will exist. Therefore an emergency is declared to exist and this act being immediately necessary for the preservation of the public peace, health and safety shall become effective on the date of its approval by the Governor. If the bill is neither approved nor vetoed by the Governer [sic], it shall become effective on the expiration of the period of time during which the Governor may veto the bill. If the bill is vetoed by the Governor and the veto is overridden, it shall become effective on the date the last house overrides the veto.”

Acts 1997, No. 317, § 8: Mar. 3, 1997. Emergency clause provided: “It is hereby found and determined by the General Assembly that Act 10 of the First Extraordinary Session of 1995 abolished the Joint Interim Committee on Agriculture and Economic Development and in its place established separate House and Senate Committees; that various sections of the Arkansas Code refer to the Joint Interim Committee on Agriculture and Economic Development and should be corrected to refer to the House and Senate Interim Committees; that this act so provides; and that this act should go into effect immediately in order to make the laws compatible as soon as possible. Therefore, an emergency is declared to exist and this act being immediately necessary for the preservation of the public peace, health and safety shall become effective on the date of its approval by the Governor. If the bill is neither approved nor vetoed by the Governor, it shall become effective on the expiration of the period of time during which the Governor may veto the bill. If the bill is vetoed by the Governor and the veto is overridden, it shall become effective on the date the last house overrides the veto.”

Acts 2003, No. 1473, § 74: July 1, 2003. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that this act includes technical corrects to Act 923 of 2003 which establishes the classification and compensation levels of state employees covered by the provisions of the Uniform Classification and Compensation Act; that Act 923 of 2003 will become effective on July 1, 2003; and that to avoid confusion this act must also [become] effective on July 1, 2003. Therefore, an emergency is declared to exist and this act being necessary for the preservation of the public peace, health, and safety shall become effective on July 1, 2003.”

Acts 2019, No. 423, § 2: Mar. 11, 2019. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that delay in implementation of this act would hinder the State Plant Board from enforcing egregious violations during the 2019 growing season, which could have a detrimental impact on the state's agricultural economy. Therefore, an emergency is declared to exist, and this act being immediately necessary for the preservation of the public peace, health, and safety shall become effective on: (1) The date of its approval by the Governor; (2) If the bill is neither approved nor vetoed by the Governor, the expiration of the period of time during which the Governor may veto the bill; or (3) If the bill is vetoed by the Governor and the veto is overridden, the date the last house overrides the veto”.

Acts 2019, No. 910, § 6346(b): July 1, 2019. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that this act revises the duties of certain state entities; that this act establishes new departments of the state; that these revisions impact the expenses and operations of state government; and that the sections of this act other than the two uncodified sections of this act preceding the emergency clause titled ‘Funding and classification of cabinet-level department secretaries’ and ‘Transformation and Efficiencies Act transition team’ should become effective at the beginning of the fiscal year to allow for implementation of the new provisions at the beginning of the fiscal year. Therefore, an emergency is declared to exist, and Sections 1 through 6343 of this act being necessary for the preservation of the public peace, health, and safety shall become effective on July 1, 2019”.

2-16-201. Title.

This subchapter shall be known as the “Arkansas Plant Act of 1917”.

History. Acts 1917, No. 414, § 1; C. & M. Dig., § 8024; Pope's Dig., § 12333; A.S.A. 1947, § 77-101.

2-16-202. Definitions.

As used in this subchapter, unless the context otherwise requires:

  1. “Insect pests and diseases” means insect pests and diseases injurious to plants and plant products of this state including any of the stages of development of such insects and diseases;
  2. “Persons” means individuals, associations, partnerships, and corporations;
  3. “Places” means vessels, cars, other vehicles, buildings, docks, nurseries, orchards, and other premises where plants and plant products are grown, kept, or handled; and
  4. “Plants and plant products” means trees, shrubs, vines, forage, and cereal plants, and all other plants; cuttings, grafts, scions, buds, and all other parts of plants; and fruit, vegetables, roots, bulbs, seeds, wood, lumber, and all other plant products.

History. Acts 1917, No. 414, § 2; C. & M. Dig., § 8025; Pope's Dig., § 12334; A.S.A. 1947, § 77-102.

2-16-203. Penalty.

  1. Any person who shall violate any provision or requirement of this subchapter or the rules made or of any notice given under this subchapter or who shall forge, counterfeit, deface, destroy, or wrongfully use any certificate provided for in this subchapter or in the rules made under this subchapter shall be guilty of a violation, and upon conviction he or she shall be punished by a fine of not more than one hundred dollars ($100).
        1. In a lawful proceeding respecting licensing, as defined in the Arkansas Administrative Procedure Act, § 25-15-201 et seq., in addition to or in lieu of any other lawful disciplinary action, the State Plant Board may assess a civil penalty of not more than one thousand dollars ($1,000) for each violation of any statute, rule, or order enforceable by the board.
          1. The board may assess a civil penalty greater than one thousand dollars ($1,000) but not more than twenty-five thousand dollars ($25,000) only if the board finds that a violation under this subdivision (b)(1)(A) is egregious.
          2. A violation is egregious only if the application of one (1) of the following herbicides is used intentionally in violation of the federal labeling requirements or a state law or rule regarding its application:
            1. Dicamba;
            2. An auxin-containing herbicide; or
            3. A new herbicide technology released after August 1, 2017.
              1. The first one thousand dollars ($1,000) of the assessed penalty for scholarships through the Arkansas State Plant Board Scholarship program; and
              2. The remainder divided as follows:
      1. In no case shall a single application or drift incident by a pesticide applicator be considered multiple violations based on the number of complaints.
      2. In no case shall the failure to meet minimum treating standards, except those that require a termiticide application, be considered a violation and subject to a civil penalty.
      1. The board shall by rule establish a schedule designating the minimum and maximum civil penalty that may be assessed under this section for violation of each statute, rule, or order over which it has regulatory control.
      2. The board may promulgate any other rule necessary to carry out the intent of this section.
    1. In the event of nonpayment of any civil penalty lawfully assessed under subdivision (b)(1) of this section, the civil penalty shall be recoverable in the name of the state by the Attorney General in Pulaski County Circuit Court or in the circuit court of the county in which the violation occurred.
      1. All sums paid or recovered under this section shall be deposited into the State Treasury.
        1. Sums collected under special revenue programs shall be deposited into the Plant Board Fund.
        2. Sums collected under general services programs shall be deposited into the Miscellaneous Agencies Fund Account.
    2. All rules promulgated under this section shall be reviewed by the House Committee on Agriculture, Forestry, and Economic Development and the Senate Committee on Agriculture, Forestry, and Economic Development or subcommittees of the House Committee on Agriculture, Forestry, and Economic Development and the Senate Committee on Agriculture, Forestry, and Economic Development.
  2. Moneys collected through a civil penalty assessed by the board shall be distributed as follows:
    1. For amounts up to one thousand dollars ($1,000), as currently used, including funding for the Arkansas State Plant Board Scholarship program; and
    2. For amounts more than one thousand dollars ($1,000):
      1. Sixty percent (60%) for scholarships through the Arkansas State Plant Board Scholarship program; and
      2. Forty percent (40%) deposited into the University of Arkansas Fund to be used by the University of Arkansas Cooperative Extension Service.

History. Acts 1917, No. 414, § 15; C. & M. Dig., § 8038; Pope's Dig., § 12346; A.S.A. 1947, § 77-114; Acts 1995, No. 141, § 1; 1995, No. 167, § 1; 1997, No. 317, § 1; 2003, No. 1473, § 1; 2005, No. 1994, § 7; 2017, No. 778, §§ 1, 2; 2019, No. 315, § 8; 2019, No. 423, § 1.

Amendments. The 2005 amendment substituted “violation” for “misdemeanor” in (a).

The 2017 amendment redesignated former (b)(1)(A) as (b)(1)(A)(i); added (b)(1)(A)(ii); and added (c).

The 2019 amendment by No. 315 substituted “rule” for “regulation” in (b)(2)(B).

The 2019 amendment by No. 423 substituted “the application of one (1) of the following herbicides is used intentionally in violation of the federal labeling requirements or a state law or rule regarding its application” for “significant off-target crop damage occurred as a result of the application of” in (b)(1)(A)(ii) (b) ; added the (b)(1)(A)(ii) (b)(1) through (3) designations; and made stylistic changes.

Case Notes

Proof.

In a prosecution for selling and offering for sale nursery stock infected with a disease in violation of a rule of the State Plant Board, the state was not required to show that the sale was made with knowledge that the trees were so affected. Jacobs v. State, 155 Ark. 95, 243 S.W. 952 (1922).

Regulations.

Arkansas State Plant Board, in a proceeding respecting licensing, properly adopted its own set of Pesticide Enforcement Response Regulations that included a penalty matrix by which the Board determined the nature of a violation and assessed its severity and the appropriate sanction. Ark. State Plant Bd. v. Bullock, 345 Ark. 373, 48 S.W.3d 516 (2001).

Violation of Rule.

Rule of State Plant Board is not void for failure to prescribe a penalty since the penalty is provided by this section. Howard v. State, 154 Ark. 430, 242 S.W. 818 (1922).

2-16-204. Actions of agents.

In construing and enforcing the provisions of this subchapter, the act, omission, or failure of any official agent or other person acting for or employed by any person, association, partnership, or corporation within the scope of his or her employment or office shall, in every case, also be deemed the act, omission, or failure of the person, association, partnership, or corporation as well as that of the person.

History. Acts 1917, No. 414, § 16; C. & M. Dig., § 8039; Pope's Dig., § 12347; A.S.A. 1947, § 77-115.

2-16-205. Effect of federal law.

This subchapter shall not be so construed or enforced as to conflict in any way with any act of the United States Congress regulating the movement of plants and plant products in interstate or foreign commerce.

History. Acts 1917, No. 414, § 17; C. & M. Dig., § 8040; Pope's Dig., § 12348; A.S.A. 1947, § 77-116.

2-16-206. State Plant Board.

  1. There is created and established a State Plant Board, composed of eighteen (18) members, as follows:
    1. Two (2) nonvoting members designated by the Vice President for Agriculture of the University of Arkansas or his or her designee;
    2. A practical cotton grower, actively engaged in the business, to be appointed by the Governor;
    3. One (1) member to represent the Arkansas Plant Food Association, actively engaged in the business, to be appointed by the Governor;
    4. A practical rice grower, actively engaged in the business, to be appointed by the Governor;
    5. A practical horticulturist, actively engaged in the business, to be elected by the Arkansas State Horticultural Society;
    6. A nurseryman, actively engaged in the business, to be elected by the Arkansas Green Industry Association;
    7. A practical seed grower, actively engaged in the business, to be elected by the Arkansas Seed Growers Association;
    8. A pest control operator, actively engaged in the business, to be elected by the Arkansas Pest Management Association, Inc.;
    9. A seed dealer, actively engaged in the business, to be elected by the Arkansas Seed Dealers' Association;
    10. One (1) member representing the Arkansas Bureau of Standards to be appointed by the Arkansas Oil Marketers Association;
    11. A pesticide manufacturer, actively engaged in the business, to be elected by the Arkansas Crop Protection Association Inc.;
    12. One (1) member to represent the Arkansas Agricultural Aviation Association, to be elected by the Arkansas Agricultural Aviation Association;
    13. One (1) member to represent the Arkansas Forestry Association, to be elected by the Arkansas Forestry Association;
    14. Two (2) farmers actively and principally engaged in farming in this state, appointed by the Governor;
    15. One (1) representative of the livestock industry, actively engaged in the business, to be appointed by the Governor; and
    16. One (1) representative of the forage industry, actively engaged in the business, to be appointed by the Governor.
  2. Board members shall serve a term of two (2) years or until such time as a successor has been elected or appointed as herein provided. A majority of the members of the board shall constitute a quorum for all purposes.
  3. The chair, vice chair, and secretary-treasurer shall be elected by the members of the board. The board shall designate some official or employee of the board to serve as disbursing officer of the board.
  4. Meetings of the board shall be called by the chair or by four (4) members of the board.
  5. The members shall serve without compensation but may receive expense reimbursements in accordance with § 25-16-901 et seq. and shall be authorized to provide a suitable office where the meetings of the board may be held and its records kept.
  6. If necessary to provide suitable space for its offices, laboratories, and other needs, the board may buy property, build buildings, or lease property for a period covering not more than fifteen (15) years from the date of lease.

History. Acts 1917, No. 414, § 3; C. & M. Dig., § 8026; Acts 1929, No. 197, § 1; 1931, No. 73, § 2; 1935, No. 97, § 1; Pope's Dig., § 12335; Acts 1953, No. 408, § 1; 1955, No. 239, § 1; 1961, No. 144, § 1; 1967, No. 77, § 1; 1971, No. 276, § 1; 1975, No. 409, § 1; A.S.A. 1947, § 77-103; Acts 1997, No. 250, § 2; 2013, No. 591, §§ 1, 2; 2019, No. 1056, § 1.

Publisher's Notes. Acts 1967, No. 77, § 3; Acts 1971, No. 276, § 2; and Acts 1975, No. 409, § 2, all provided that it was the intent of these acts to add members to the State Plant Board and that the addition of the members would not affect the term of any member then serving on the board. The terms of the members of the board are now arranged so that 16 terms expire every two years.

Acts 1983, No. 691, § 11, provided, in part, that the State Plant Board and its powers, functions, and duties, which had been transferred to the Department of Commerce by Acts 1971, No. 38, § 16, would be separated from the Department of Commerce and would be an independent agency of state government, to function in the same manner it functioned prior to its transfer to the Department of Commerce.

Acts 1993, Nos. 610 and 624, § 1, provided: “The Arkansas Bureau of Standards, created by Act 482 of 1963, as amended, the same being A.C.A. 4-18-201 et seq., and its functions, powers, duties, assets, properties, and appropriations are transferred by a type 2 transfer [see § 25-2-105] to the State Plant Board.”

Amendments. The 2013 amendment substituted “eighteen (18)” for “sixteen (16)” in the introductory language of (a); and added (a)(16) and (a)(17).

The 2019 amendment deleted former (2) and redesignated the remaining subdivisions accordingly; rewrote (1); substituted “Plant Food Association” for “fertilizer and cotton oil mills” in (3); and rewrote (10).

Cross References. Division of Agriculture — Service on boards or commissions, § 6-64-106.

2-16-207. Powers and duties of board.

    1. The State Plant Board shall keep itself informed as to the varieties of insect pests, diseases, and noxious weeds and the origin, locality, nature, and appearance thereof; the manner in which they are disseminated; and the approved methods of treatment and eradication.
    2. Every such insect pest, disease, and noxious weed, and every plant and plant product infested or infected is declared to be a public nuisance.
    1. The board in its rules made under this subchapter shall list the insect pests, diseases, and noxious weeds, of which it shall find that the introduction into or the dissemination within the state should be prevented in order to safeguard the plants and plant products of this state, and the list shall include the plants and plant products or other substances on or in which these pests may be carried.
    2. Every person who has knowledge of the presence of any insect pest, disease, or noxious weed listed as required in this section in the rules made under this subchapter, in or upon any place, shall immediately report it to the board or inspectors thereof, giving such detailed information relative thereto as he or she may have.
    3. Every person who deals in or engages in the sale of plants or plant products shall furnish to the board or its inspectors, when requested, a statement of the names and addresses of the persons from whom and the localities where he or she purchased or obtained the plant and plant products.
    1. The board shall make rules for carrying out the provisions and requirements of this subchapter, including rules under which the inspectors and other employees of the Department of Agriculture shall:
      1. Inspect places, plants and plant products, and things and substances used or connected herewith;
      2. Investigate, control, eradicate, and prevent the dissemination of insect pests, diseases, and noxious weeds; and
      3. Supervise or cause the treatment, cutting, and destruction of infected or infested plants and plant products.
    2. For the purpose of preventing fraud and misrepresentation, the board shall make rules governing the transportation, distribution, or sale of sorghum seed, hybrid corn seed, and other seeds intended for planting.
  1. For the purpose of carrying out the provisions and requirements of this subchapter, of the rules made, and notices given pursuant thereto, the board and the inspectors and employees of the department shall have power to enter into or upon any place and to open any bundle, package, or other container of plants or plant products.

History. Acts 1917, No. 414, §§ 5, 6, 13; C. & M. Dig., §§ 8028, 8029, 8036; Acts 1937, No. 203, § 1; Pope's Dig., §§ 12337, 12338, 12344; Acts 1939, No. 40, § 1; 1943, No. 44, § 1; A.S.A. 1947, §§ 77-105, 77-106, 77-112; Acts 2019, No. 910, § 18.

Publisher's Notes. Acts 1949, No. 327, § 1, provided that all of the powers, duties, functions, and authority vested in the Director of the Department of Finance and Administration governing the manufacture, sale, distribution, inspection, and control of concentrated commercial feeds, commercial fertilizers, and fertilizer materials and cottonseed meal would be transferred to the State Plant Board.

Amendments. The 2019 amendment inserted “of the Department of Agriculture” in the introductory language of (c)(1) and in (d); and made stylistic changes.

Cross References. Administration of Soil Amendment Act of 1977,§ 2-19-404.

Arkansas Feed Law of 1997, § 2-37-101 et seq.

Duty to administer and enforce the Fruit and Vegetable Labeling Act of 1947, § 2-20-306.

Duty to administer Pesticide Use and Application Act, § 20-20-205.

Duty to carry out provisions of Pest Control Law, § 17-37-105.

Enforcement of Agricultural Liming Materials Act, § 2-19-308.

Fertilizers, § 2-19-201 et seq.

Power to investigate and certify to varietal purity and fitness for planting of agricultural seed, rules and regulations, §§ 2-18-103, 2-18-104.

Powers and duties under Agricultural Products Grading Act of 1925, § 2-20-101 et seq.

Case Notes

Rules and Regulations.

Rule is not invalid because no penalty is prescribed since § 2-16-203 prescribes the penalty. Howard v. State, 154 Ark. 430, 242 S.W. 818 (1922).

The State Plant Board was authorized to adopt and promulgate a rule requiring cedar trees infected with rust within a certain distance of an orchard to be cut down, and one disobeying such an order was guilty of a misdemeanor. Howard v. State, 154 Ark. 430, 242 S.W. 818 (1922).

A rule of the State Plant Board prohibiting the sale of infected nursery stock has the force and effect of a statute and should be construed as if it were one. Jacobs v. State, 155 Ark. 95, 243 S.W. 952 (1922).

2-16-208. Director of board.

    1. For the purpose of carrying out the provisions of this subchapter, the State Plant Board shall employ, prescribe the duties of, and fix the compensation for a Director of the State Plant Board.
      1. With the approval of the State Plant Board, the director may employ such inspectors or other employees as may be required and may incur such expenses as may be necessary within the limits of the appropriation made by law.
      2. The State Plant Board shall be subject to all executive orders by the Governor instituting a hiring freeze or restriction applicable to all cabinet-level departments.
    1. The director shall be appointed by the State Plant Board with the approval of the Governor and shall serve at the pleasure of the Governor.
      1. The director shall report to the Secretary of the Department of Agriculture.
      2. The secretary shall serve as the liaison between the State Plant Board and the Governor.
    1. The director shall furnish a bond of five thousand dollars ($5,000) with sufficient sureties approved by the State Plant Board for the faithful performance of his or her duties of this subchapter and the rules of the State Plant Board.
    2. Any person suffering damage by reason of the acts or omissions of the chief inspector or his or her duly authorized deputies or employees may bring action on the bond for damages.
    3. The State Plant Board may require to indemnify the director that similar bonds shall be furnished by deputies, inspectors, or employees.
  1. The State Plant Board shall cooperate with other departments, boards, and officers of this state and of the United States as far as possible.
  2. The secretary shall not be appointed to the position of director.

History. Acts 1917, No. 414, § 4; C. & M. Dig., § 8027; Acts 1921, No. 664, § 1; Pope's Dig., § 12336; Acts 1953, No. 360, § 1; 1983, No. 691, § 11; A.S.A. 1947, §§ 77-103.2, 77-104; Acts 2019, No. 910, § 19.

A.C.R.C. Notes. The operation of subsection (c) of this section was suspended by adoption of a self-insured fidelity bond program for the public officers, officials and employees, effective July 20, 1987, pursuant to § 21-2-701 et seq. The subsection may again become effective upon cessation of coverage under that program. See § 21-2-703.

Publisher's Notes. Acts 1967, No. 77, § 2, provided that the title of the “Chief Inspector of the State Plant Board” would be changed to “Director, State Plant Board” and that the director would perform all powers and duties and assume all responsibilities formerly vested by law in the Chief Inspector of the State Plant Board.

Amendments. The 2019 amendment substituted “State Plant Board” for “board” throughout the section; redesignated (a) as (a)(1) and (a)(2)(A), and added (a)(2)(B); and redesignated (b) as (b)(1), and added (b)(2); and added (e).

2-16-209. Transportation, etc., of insect pests, etc., generally.

  1. Transportation through or into or transportation, distribution, or sale within the state of any insect pest, plant disease, noxious weed, or any plant, plant product, or other substance, listed in the rules of the State Plant Board as required under § 2-16-207, or of sorghum seed, hybrid corn seed, or other planting seeds for the transportation, distribution, or sale of which the board has made rules under this subchapter is prohibited except under such safeguards as may be provided for in the rules of the board.
  2. To cover expenses incident to inspection or treatment or incident to the issuance of such permits or certificates as may be required by the board's rules made under this subchapter, the board may require the payment of reasonable fees which shall be deposited in the manner prescribed by § 2-16-210 to be used in carrying out the provisions of this subchapter.
  3. The board is empowered to require that a shipper who ships plants from another state into Arkansas must meet any and all requirements which the shipper's state would make of an Arkansas shipper who ships plants into that state.
  4. Inspectors carrying out the provisions of this subchapter on issuance of a written notice may cause to be held or to be sent out of the state or to be destroyed any plant, plant product, or other substance which has been brought into or is being transported within the state in violation of any state or federal law, rule, or regulation. They may stop and detain for inspection any person, car, or other carrier.

History. Acts 1917, No. 414, § 11; C. & M. Dig., § 8034; Acts 1929, No. 197, § 3; 1937, No. 203, § 2; Pope's Dig., § 12342; Acts 1939, No. 40, § 2; 1943, No. 44, § 2; A.S.A. 1947, § 77-110; Acts 2019, No. 910, § 20.

Amendments. The 2019 amendment, in the first sentence of (d), substituted “carrying out the provisions of this subchapter” for “of the board” and inserted “rule”.

2-16-210. Certificate of inspection required.

  1. It shall be unlawful for any person to sell, give away, carry, ship, or deliver for carriage or shipment, within this state, any plants or plant products listed as required by this subchapter unless the plants and plant products have been officially inspected and a certificate has been issued by an inspector of the State Plant Board. This certificate shall state that the plants or plant products have been inspected and found to be apparently free from insect pests and diseases. It shall also be unlawful for any person to sell, give away, carry, ship, or deliver for carriage any plants or plant products unless the plants or plant products bear a certificate issued by an inspector of the board. This certificate shall show that the place on which the plants or plant products were grown has been inspected and found to be apparently free from insect pests and diseases and any other facts provided for in the rules made under this subchapter.
  2. This section shall not apply to plants and plant products not affected by rules made under § 2-16-211 when the plants or plant products are disposed of in local trade.
  3. When any person shall notify the board of impending shipments of plants or plant products and the board fails to provide the proper inspector to inspect the plants or plant products under the rules made under this subchapter, the person desiring to make the shipment may do so without being liable to provisions of this section.
  4. For the issuance of the certificate as provided for in this section, the board may require the payment of a reasonable fee to cover the expenses of the inspection and certification. If it shall be found at any time that a certificate of inspection, issued or accepted under the provisions of this section, is being used in connection with plants and plant products which are infested or infected with insect pests or diseases, its further use may be prohibited, subject to such inspection and other disposition of the plants and plant products involved as may be provided for by the board.
  5. All moneys collected by the board under this section or under § 2-16-211 or § 2-16-214 shall be deposited with the treasurer of the board and shall be used in carrying out the provisions of this subchapter.

History. Acts 1917, No. 414, § 9; C. & M. Dig., § 8032; Pope's Dig., § 12340; A.S.A. 1947, § 77-108.

Publisher's Notes. The provisions of this section relating to the disposition of moneys may be affected by § 19-5-101 et seq. and by § 2-16-104.

2-16-211. Eradication of pests, diseases, or noxious weeds.

  1. Whenever the inspection discloses that any places, plants, plant products, or things and substances used or connected therewith, are infested or infected with any insect pest, disease, or noxious weed, listed, as required by § 2-16-207 in rules made under this subchapter, written notice thereof shall be given the owner or other person in possession or control of the place where found, and the owner or other person shall proceed to control, eradicate, or prevent the dissemination of the insect pest, disease, or noxious weed. The owner shall then remove, cut, or destroy infested or infected plants and plant products or things and substances used or connected therewith, within the time and in the manner prescribed by the notice or the rules made under this subchapter.
  2. Whenever the owner or other person cannot be found or shall fail, neglect, or refuse to obey the requirements of the notice and the rules made under this subchapter, the requirements shall be carried out by the inspector or other employees of the State Plant Board. The board shall have and enforce a lien for the expenses thereof against the place in which or upon which the expenses were incurred in the same manner as liens are had and enforced upon buildings, lots, wharves, and piers for labor and materials furnished by virtue of contract with the owner.

History. Acts 1917, No. 414, § 7; C. & M. Dig., § 8030; Acts 1937, No. 203, § 1; Pope's Dig., § 12339; A.S.A. 1947, § 77-107.

2-16-212. Regulation of pests or diseases within state.

  1. Whenever the State Plant Board shall find that there exists in this state or any part thereof any insect, disease, or noxious weed and that its dissemination should be controlled or prevented, the board may give notice thereof, specifying the plants and plant products infested, infected, or likely to become infested or infected therewith.
  2. The movement, planting, or other use of any plant, plant products, or other thing or substance specified in the notice as likely to carry and disseminate the insect pest, disease, or noxious weed, except under such safeguard as may be provided in the rules made by the board, shall be prohibited within such area as may be designated in the public notice until the board shall find that the danger of the dissemination of the insect, disease, or noxious weed has ceased to exist, of which the board shall give public notice.
  3. Before the order of prohibition shall be issued, a public hearing, with due public notice thereof, shall be held by the board, at which hearing interested persons may appear in person or by attorney.

History. Acts 1917, No. 414, § 12; C. & M. Dig., § 8035; Acts 1937, No. 203, § 1; Pope's Dig., § 12343; A.S.A. 1947, § 77-111.

2-16-213. Receiving noncomplying plants, etc.

Any person in this state who receives any plant or plant product sold, given away, carried, shipped, or delivered for carriage or shipment within this state, as to which the requirements of § 2-16-210 have not been complied with, shall immediately inform the State Plant Board or an inspector thereof and isolate and hold the plant product unopened or unused subject to such inspection and other disposition as may be provided for by the board.

History. Acts 1917, No. 414, § 10; C. & M. Dig., § 8033; Pope's Dig., § 12341; A.S.A. 1947, § 77-109.

2-16-214. Review of rules, etc.

Any person affected by any rules made or notice given, under this subchapter, may have a review thereof by the State Plant Board for the purposes of having the rules or notice modified, suspended, or withdrawn, and, pending the review, the rules or notice shall be suspended.

History. Acts 1917, No. 414, § 14; C. & M. Dig., § 8037; Pope's Dig., § 12345; A.S.A. 1947, § 77-113.

Subchapter 3 — Emergency Plant Act of 1921

Effective Dates. Acts 1997, No. 250, § 258: Feb. 24, 1997. Emergency clause provided: “It is hereby found and determined by the General Assembly that Act 1211 of 1995 established the procedure for all state boards and commissions to follow regarding reimbursement of expenses and stipends for board members; that this act amends various sections of the Arkansas Code which are in conflict with the Act 1211 of 1995; and that until this cleanup act becomes effective conflicting laws will exist. Therefore an emergency is declared to exist and this act being immediately necessary for the preservation of the public peace, health and safety shall become effective on the date of its approval by the Governor. If the bill is neither approved nor vetoed by the Governer [sic], it shall become effective on the expiration of the period of time during which the Governor may veto the bill. If the bill is vetoed by the Governor and the veto is overridden, it shall become effective on the date the last house overrides the veto.”

Acts 2019, No. 910, § 6346(b): July 1, 2019. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that this act revises the duties of certain state entities; that this act establishes new departments of the state; that these revisions impact the expenses and operations of state government; and that the sections of this act other than the two uncodified sections of this act preceding the emergency clause titled ‘Funding and classification of cabinet-level department secretaries’ and ‘Transformation and Efficiencies Act transition team’ should become effective at the beginning of the fiscal year to allow for implementation of the new provisions at the beginning of the fiscal year. Therefore, an emergency is declared to exist, and Sections 1 through 6343 of this act being necessary for the preservation of the public peace, health, and safety shall become effective on July 1, 2019”.

2-16-301. Title.

This subchapter shall be known as the “Arkansas Emergency Plant Act of 1921”.

History. Acts 1921, No. 519, § 1; A.S.A. 1947, § 77-117.

2-16-302. Definitions.

For the purposes of this subchapter, unless the context otherwise requires, the terms and definitions set forth in § 2-16-202 are adopted and made a part of this subchapter. In addition, the term “dangerous insect pest and plant diseases” shall be construed to mean such insect pests and plant diseases as the pink bollworm, the Mexican bean beetle, potato wart disease, “take all”, and such other insect pests and plant diseases, the prevalence of which would threaten an established agricultural industry in the state.

History. Acts 1921, No. 519, § 2; Pope's Dig., § 12358; A.S.A. 1947, § 77-118.

2-16-303. Provisions supplemental.

This subchapter shall not be construed as limiting the authority conferred upon the State Plant Board by the Arkansas Plant Act of 1917, § 2-16-201 et seq., but shall be construed as supplemental thereto.

History. Acts 1921, No. 519, § 12; Pope's Dig., § 12368; A.S.A. 1947, § 77-128.

2-16-304. Penalties — Prosecution.

  1. Any person who shall violate any provision of this subchapter or who shall interfere with any member of the State Plant Board or any inspector or employee while engaged in the performance of his or her duties under this subchapter shall be guilty of a Class A misdemeanor.
    1. Upon information furnished by the board, it shall be the duty of the Attorney General or the prosecuting attorney of the district in which an alleged violation of any provision of this subchapter may occur to enforce the provisions of this subchapter by proceedings in any court of competent jurisdiction.
    2. If the remedy elected to be pursued is by writ of injunction, no court of this state shall have the right to set aside or stay the writ of injunction before a hearing upon the merits.

History. Acts 1921, No. 519, § 8; Pope's Dig., § 12364; A.S.A. 1947, § 77-124; Acts 2005, No. 1994, § 331.

Amendments. The 2005 amendment, in (a), inserted “or her” and “Class A” in the first sentence and deleted the former second sentence.

2-16-305. Actions of agents.

In construing and enforcing the provisions of this subchapter, the act, omission, or failure of an official, agent, or other person acting for or employed by any person, association, partnership, or corporation within the scope of his or her employment or office shall, in every case, also be deemed the act, omission, or failure of the person, association, partnership, or corporation as well as that of the person acting as the agent.

History. Acts 1921, No. 519, § 10; Pope's Dig., § 12366; A.S.A. 1947, § 77-126.

2-16-306. Enforcement.

    1. The provisions of this subchapter and the rules promulgated hereunder shall be carried out by the Director of the State Plant Board, who shall serve without extra compensation.
    2. The director may, with the approval of the State Plant Board, employ such inspectors or other employees as may be required and may incur such expenses as may be necessary, within the limits of the appropriation made by law or declared by the Governor.
  1. For the purposes of carrying out the requirements of this subchapter, and the rules made and notices given pursuant thereto, the inspectors and employees of the Department of Agriculture shall have the right to enter into or upon any place and for purpose of inspection to open any bundle, package, or other container of plants, plant products, articles, or substances.
    1. In the enforcement of this subchapter and of the rules made pursuant thereto, the board may summon witnesses; require the production of any books, papers, or documents it deems material; administer oaths; and hear witnesses.
    2. It shall be the duty of each sheriff in the state to serve a summons when requested by the board.

History. Acts 1921, No. 519, §§ 3, 7, 9; Pope's Dig., §§ 12359, 12363, 12365; A.S.A. 1947, §§ 77-119, 77-123, 77-125; Acts 2019, No. 910, §§ 21, 22.

Amendments. The 2019 amendment substituted “inspectors and employees of the Department of Agriculture” for “board and its inspectors and employees” in (b); and substituted “State Plant Board” for “board” in (c)(1).

2-16-307. Infested zones — Emergency proclamation.

  1. Upon satisfactory information acquired in any manner or upon information furnished by the State Plant Board, signed by the secretary and at least three (3) members thereof, showing that a dangerous insect pest or plant disease exists in the state or is in dangerous proximity thereto, the Governor shall issue a proclamation specifying the insect pest or plant disease. The proclamation shall declare such a pest or disease to be a dangerous insect pest or plant disease which threatens an agricultural industry. It shall specify the plants, plant products, articles, substances, and places capable of harboring or spreading the dangerous insect pest or plant disease and shall declare the zones or areas in which the danger exists.
  2. Until such time as the Governor shall ascertain from the board, as provided above, and shall by proclamation declare that the emergency has ceased to exist, it shall be unlawful for any person to grow or maintain within those zones or areas any plants, plant products, articles, substances, or places infected or infested with a dangerous plant disease or insect pest or likely to become so infested or infected.
  3. Plants, plant products, articles, substances, or places may be grown or maintained in the manner and method and under the conditions which shall be prescribed by rules made and promulgated by the board as provided in this subchapter.

History. Acts 1921, No. 519, § 4; Pope's Dig., § 12360; A.S.A. 1947, § 77-120.

2-16-308. Infested zones — Regulation by State Plant Board — Destruction of plants, etc.

  1. It shall be the duty of the State Plant Board, and the board is authorized and directed, when public safety will permit, to make and promulgate rules which shall permit and govern the growing and maintenance in any zones or areas mentioned in § 2-16-307 of any plants, plant products, articles, substances, or places referred to in § 2-16-307.
  2. Whenever it shall be ascertained and determined by the board that any plants, plant products, articles, substances, or places are infested or infected or are so situated as to be subject to infestation or infection by a dangerous insect pest or plant disease, and thereby capable of spreading the infestation or infection, the board shall require the treatment, cutting, or destruction of the plants, plant products, articles, substances, or places.
  3. If the owner, custodian, or occupant of the plants, plant products, articles, substances, or places referred to in this section cannot be found or shall, upon reasonable notice, fail or refuse to comply with the requirements of this subchapter, the requirements shall be carried out by the board and the expense thereof charged against the owner, custodian, or occupant.

History. Acts 1921, No. 519, § 5; Pope's Dig., § 12361; A.S.A. 1947, § 77-121.

2-16-309. Claims committee.

  1. Whenever property shall be damaged, destroyed, or rendered unproductive in carrying out the provisions of this subchapter, the Governor shall appoint a committee on claims for each county affected.
  2. The committee shall consist of two (2) representatives of the county affected, and three (3) members of the State Plant Board, as follows:
    1. The practical cotton grower;
    2. The nurseryman; and
    3. The practical horticulturist.
  3. The members of the committee shall serve as long as the Governor shall deem their services to be necessary.
    1. The committee shall elect a chairperson.
    2. A majority of the members shall constitute a quorum for the transaction of business, but there shall be present at every meeting at least one (1) of the members appointed by the Governor to represent the county concerned and not less than two (2) members of the board composing the committee.
  4. The members of the committee shall serve without compensation, but may receive expense reimbursement in accordance with § 25-16-901 et seq.
  5. The committee shall engage such clerical and other help as may be necessary.
  6. The committee shall investigate and cause a survey to be made to determine the claims of all persons whose property has been destroyed, damaged, or rendered unproductive in carrying out the provisions of this subchapter.
  7. The committee shall submit each claim approved by it to the secretary of the board, who shall then issue for each claim a voucher for a warrant drawing on the State Treasury out of funds made available for the purpose, to the amount of the claims approved by the committee.

History. Acts 1921, No. 519, § 6; Pope's Dig., § 12362; Acts 1985, No. 385, § 1; A.S.A. 1947, § 77-122; Acts 1997, No. 250, § 3.

2-16-310. Annual report.

The State Plant Board shall make an annual report to the Governor, in which report it shall give an account of the disposition of the appropriations which may be made for the purposes of carrying out the provisions of this subchapter.

History. Acts 1921, No. 519, § 11; Pope's Dig., § 12367; A.S.A. 1947, § 77-127.

Subchapter 4 — Pesticide Control

Publisher's Notes. Acts 1975, No. 410, § 23, provided that the enactment of this subchapter would not have the effect of terminating or in any way modifying any liability, civil or criminal, that was already in existence on the date this subchapter became effective.

Cross References. Pest Control Law, § 17-37-101 et seq.

Pesticide Use and Application Act, § 20-20-201 et seq.

Effective Dates. Acts 1975, No. 410, § 25: effective upon becoming law for purpose of adoption of rules and regulations; effective Jan. 1, 1976, for other purposes.

Acts 1993, No. 783, § 13: Mar. 29, 1993. Emergency clause provided: “It is hereby found and determined by the Seventy-Ninth General Assembly meeting in Regular Session that the provisions of this act are of critical importance to the state's ability to continue the duties, responsibilities, and functions of the State Plant Board. Therefore, an emergency is hereby declared to exist and this act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after its passage and approval.”

Acts 2019, No. 910, § 6346(b): July 1, 2019. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that this act revises the duties of certain state entities; that this act establishes new departments of the state; that these revisions impact the expenses and operations of state government; and that the sections of this act other than the two uncodified sections of this act preceding the emergency clause titled ‘Funding and classification of cabinet-level department secretaries’ and ‘Transformation and Efficiencies Act transition team’ should become effective at the beginning of the fiscal year to allow for implementation of the new provisions at the beginning of the fiscal year. Therefore, an emergency is declared to exist, and Sections 1 through 6343 of this act being necessary for the preservation of the public peace, health, and safety shall become effective on July 1, 2019”.

Research References

ALR.

Products liability for fertilizers, insecticides, pesticides, fungicides, weed killers, or articles used in application thereof. 12 A.L.R.4th 462.

Am. Jur. 61C Am. Jur. 2d, Poll. Cont., § 1633 et seq.

C.J.S. 3 C.J.S., Agri., § 115 et seq.

2-16-401. Title.

This subchapter shall be known as the “Arkansas Pesticide Control Act”.

History. Acts 1975, No. 410, § 1; A.S.A. 1947, § 77-227.

2-16-402. Purpose.

  1. The purpose of this subchapter is to regulate in the public interest the labeling, distribution, storage, transportation, and disposal of pesticides as defined in this subchapter.
  2. Pesticides are valuable to our state's agricultural production and to the protection of man and the environment from insects, rodents, weeds, and other forms of life which may be pests; but it is essential to the public health and welfare that they be regulated to prevent adverse effects on human life and the environment.
  3. New pesticides are continually being discovered, synthesized, or developed which are valuable for the control of pests and for use as defoliants, desiccants, plant regulators, spray adjuvants, and related purposes. However, such pesticides may be ineffective, may cause injury to man, or may cause unreasonable adverse effects on the environment.
  4. Therefore, it is deemed necessary to provide for regulation of pesticides.

History. Acts 1975, No. 410, § 3; A.S.A. 1947, § 77-229.

2-16-403. Definitions.

As used in this subchapter, unless the context otherwise requires:

  1. “Active ingredient” means any ingredient which will prevent, destroy, repel, control, or mitigate pests or which will act as a plant regulator, defoliant, desiccant, or spray adjuvant;
  2. “Adulterated” shall apply to any pesticide if its strength or purity falls below the professed standard or quality as expressed on its labeling or under which it is sold, if any substance has been substituted wholly or in part for the pesticide, or if any valuable constituent of the pesticide has been wholly or in part abstracted;
  3. “Animal” means all vertebrate and invertebrate species, including, but not limited to, man and other mammals, birds, fish, and shellfish;
  4. “Beneficial insects” means those insects which during their life cycle are effective pollinators of plants, are parasites or predators of pests, or are otherwise beneficial;
  5. “Defoliant” means any substance or mixture of substances intended for causing the leaves or foliage to drop from a plant, with or without causing abscission;
  6. “Desiccant” means any substance or mixture of substances intended for artificially accelerating the drying of plant tissue;
  7. “Device” means any instrument or contrivance, other than a firearm, which is intended for trapping, destroying, repelling, or mitigating any pest or any other form of plant or animal life, other than man, and other than bacteria, virus, or other microorganism on or in living man or other living animals; but not including equipment used for the application of pesticides when sold separately from the sale of pesticides;
  8. “Distribute” means to offer for sale, hold for sale, sell, barter, ship, deliver for shipment, or receive and having so received, deliver or offer to deliver, pesticides in this state;
  9. “Environment” includes water, air, land, and all plants and man and other animals living therein, and the interrelationships which exist among these;
  10. [Repealed.]
  11. [Repealed.]
  12. “Fungus” means any non-chlorophyll-bearing thallophytes, that is, all non-chlorophyll-bearing plants of a lower order than mosses and liverworts, for example, rusts, smuts, mildews, molds, yeasts, and bacteria, except those on or in living man or other living animals, and except those in or on processed food, beverages, or pharmaceuticals;
  13. “Highly toxic pesticide” means any pesticide determined to be a highly toxic pesticide under the authority of Section 25(c)(2) of the Federal Insecticide, Fungicide, and Rodenticide Act, 7 U.S.C. § 136w(c)(2), or by the State Plant Board under § 2-16-406(a)(2);
  14. “Imminent hazard” means a situation which exists when the continued use of a pesticide during the time required for cancellation proceedings under § 2-16-408 would likely result in unreasonable adverse effects on the environment or will involve unreasonable hazard to the survival of a species declared endangered by the United States Secretary of the Interior under P.L. 91-135;
  15. “Inert ingredient” means an ingredient which is not an active ingredient;
  16. “Ingredient statement” means:
    1. Statement of the name and percentage of each active ingredient together with the total percentage of the inert ingredients in the pesticide; and
    2. When the pesticide contains arsenic in any form, the ingredient statement shall also include percentages of total and water-soluble arsenic, each calculated as elemental arsenic. In the case of a spray adjuvant, the ingredient statement need contain only the names of the functioning agents and the total percentage of the constituents ineffective as spray adjuvants;
  17. “Insect” means any of the numerous small invertebrate animals generally having the body more or less obviously segmented, for the most part belonging to the class insecta, comprising six-legged, usually winged forms, for example, beetles, bugs, bees, flies, and other allied classes of arthropods whose members are wingless and usually have more than six (6) legs, for example, spiders, mites, ticks, centipedes, and wood lice;
  18. “Label” means the written, printed, or graphic matter on or attached to the pesticide or device or any of its containers or wrappers;
  19. “Labeling” means the label and all other written, printed, or graphic matter:
    1. Accompanying the pesticide or device at any time; or
    2. To which reference is made on the label or in literature accompanying the pesticide or device, except to current official publications of the United States Environmental Protection Agency; the United States Department of Agriculture, the United States Department of the Interior, and the United States Department of Health and Human Services; state experiment stations; state agricultural colleges; and other similar federal or state institutions or agencies authorized by law to conduct research in the field of pesticides;
  20. “Nematode” means invertebrate animals of the phylum nemathelminthes and class nematoda, that is, unsegmented round worms with elongated, fusiform, or sac-like bodies covered with cuticle and inhabiting soil, water, plants, or plant parts; they may also be called nemas or eelworms;
  21. “Person” means any individual, partnership, association, fiduciary, corporation, or any organized group of persons whether incorporated or not;
  22. “Pest” means:
    1. Any insect, rodent, nematode, fungus, weed; or
    2. Any other form of terrestrial or aquatic plant or animal life or virus, bacteria, or other microorganism except viruses, bacteria, or other microorganisms on or in living man or other living animals which the United States Environmental Protection Agency declares to be a pest under Section 25(c)(1) of the Federal Insecticide, Fungicide, and Rodenticide Act, 7 U.S.C. § 136w(c)(1), or which the board declares to be a pest under § 2-16-406(a)(1);
  23. “Pesticide” means:
    1. Any substance or mixture of substances intended for preventing, destroying, repelling, or mitigating any pests;
    2. Any substance or mixture of substances intended for use as a plant regulator, defoliant, or desiccant; and
    3. Any substance or mixture of substances intended to be used as a spray adjuvant;
  24. “Plant regulator” means any substance or mixture of substances, intended through physiological action, for accelerating or retarding the rate of growth or rate of maturation or for otherwise altering the behavior of plants or the produce thereof. The term shall not include substances to the extent that they are intended as plant nutrients, trace elements, nutritional chemicals, plant inoculants, and soil amendments;
  25. “Protect health and environment” means protection against any unreasonable adverse effects on the environment;
  26. “Registrant” means a person who has registered any pesticide under the provisions of this subchapter;
  27. “Restricted-use pesticide” means any pesticide or pesticide use classified for restricted use by the Administrator of the United States Environmental Protection Agency;
  28. “Spray adjuvant” means any wetting agent, spreading agent, sticker, deposit builder, adhesive, emulsifying agent, deflocculating agent, water modifier, or similar agent intended to be used with any other pesticide as an aid to the application or to the effect thereof, and which is in a package or container separate from that of the pesticide with which it is to be used;
  29. “State-restricted pesticide” means any pesticide or pesticide use which, when used as directed or in accordance with a widespread and commonly recognized practice, the board determines, subsequent to a hearing, requires additional restrictions for that pesticide or use to prevent unreasonable adverse effects on the environment, including humans, lands, beneficial insects, animals, crops, and wildlife, other than pests;
  30. “Unreasonable adverse effects on the environment” means any unreasonable risk to humans or the environment, taking into account the economic, social, and environmental costs and benefits of the use of any pesticide;
  31. “Weed” means any plant which grows where not wanted; and
  32. “Wildlife” means all living things that are neither human, domesticated, nor, as defined in this subchapter, pests. “Wildlife” shall include, but not be limited to, mammals, birds, and aquatic life.

History. Acts 1975, No. 410, § 4; A.S.A. 1947, § 77-230; Acts 2019, No. 378, § 2.

Amendments. The 2019 amendment repealed (10) and (11).

U.S. Code. The relevant provisions of Pub. L. No. 91-135 referred to in this section were codified as 16 U.S.C. §§ 668cc-1 — 668cc-6 and were repealed effective December 28, 1973. Provisions covering endangered species are generally codified as 16 U.S.C. § 1531 et seq. (Endangered Species Act of 1973.)

2-16-404. Penalties.

  1. Any person who violates any provision of this subchapter or a rule adopted under this subchapter shall be guilty of a violation and upon conviction shall be punished for the first offense by a fine of not less than one hundred dollars ($100) nor more than one thousand dollars ($1,000) and for the second and any additional offense a fine of not less than five hundred dollars ($500) nor more than two thousand dollars ($2,000).
  2. Any offense committed more than three (3) years after a previous conviction shall be considered as a first offense.

History. Acts 1975, No. 410, § 18; A.S.A. 1947, § 77-244; Acts 2005, No. 1994, § 8; 2019, No. 315, § 9.

Amendments. The 2005 amendment, in (a), substituted “violation” for “misdemeanor” and “punished” for “punishable”.

The 2019 amendment substituted “rule” for “regulation” in (a).

2-16-405. Administration.

  1. This subchapter shall be administered by the State Plant Board.
  2. The administrative functions vested in the board by this subchapter shall be considered to be delegated to the employees of the Department of Agriculture or the department's authorized representatives on behalf of the board.

History. Acts 1975, No. 410, §§ 2, 20; A.S.A. 1947, §§ 77-228, 77-246; Acts 2019, No. 910, § 23.

Amendments. The 2019 amendment rewrote (b).

2-16-406. Powers of State Plant Board.

  1. The State Plant Board is authorized, after due notice and an opportunity for a hearing, to:
    1. Declare as a pest any form of plant or animal life, other than man and other than bacteria, viruses, and other microorganisms on or in living man or other living animals, which is injurious to health or the environment;
    2. Determine whether pesticides registered under the authority of Section 24(c) of the Federal Insecticide, Fungicide, and Rodenticide Act, 7 U.S.C. § 136v(c), are highly toxic to man. The definition of “highly toxic” in 16 C.F.R. § 1500.3(b)(6)(i), as issued or hereafter amended, shall govern the board's determination;
    3. Determine pesticides, and quantities of substances contained in pesticides, which are injurious to the environment. The board shall be guided by the United States Environmental Protection Agency regulations in this determination; and
    4. Prescribe regulations requiring any pesticide registered for special local needs to be colored or discolored if it determines that the requirement is feasible and is necessary for the protection of health and the environment.
  2. The board is authorized to inspect pesticides wherever found and may sample and analyze or cause to be analyzed samples thereof, to determine compliance with this subchapter and the regulations adopted hereunder.
  3. The board is authorized, after due notice and a public hearing, to make appropriate regulations where the regulations are necessary for the enforcement and administration of this subchapter. These regulations shall include, but not be limited to, regulations providing for:
    1. The safe handling, transportation, storage, display, distribution, and disposal of pesticides and their containers;
    2. Labeling requirements of all pesticides required to be registered under provisions of this subchapter. The regulations shall not impose any requirements for federally registered labels in addition to or different from those required under the Federal Insecticide, Fungicide, and Rodenticide Act, 7 U.S.C. § 136 et seq.;
    3. Specifying those classes of devices which shall be subject to any provision of § 2-16-410.
  4. For the purpose of uniformity and in order to enter into cooperative agreements, the board may:
    1. Adopt restricted-use pesticides classifications as determined by the United States Environmental Protection Agency. In addition, the board may declare certain pesticides or pesticide uses as state-restricted pesticides when, after investigation and public hearing, it finds and determines the pesticide to be injurious to persons, animals, or vegetation other than the pest or vegetation which it is intended to destroy, or otherwise requires additional restrictions under the conditions set forth in § 2-16-403(29). The sale or distribution of such pesticides in Arkansas or their use in pest control or other operation is prohibited, except in accordance with such rules and regulations as may be made by the board after a public hearing. The rules and regulations may include rules and regulations prescribing the time when and the conditions under which the materials may be used in different areas in the state. The board, in its rules and regulations, may charge inspection and permit fees sufficient to cover the cost of enforcement of this subdivision (d)(1); and
    2. Adopt regulations in conformity with the primary pesticide standards, particularly as to labeling and registration requirements, as established by the United States Environmental Protection Agency or other federal or state agencies.

History. Acts 1975, No. 410, § 9; A.S.A. 1947, § 77-235.

2-16-407. Pesticide registration required.

  1. Each pesticide must have been accepted for registration by the State Plant Board, and the registration must be in force at the time it is sold, offered for sale, or distributed in this state. Registration is not required if a pesticide is shipped from one (1) plant or warehouse to another plant or warehouse operated by the same person and used solely at the plant or warehouse as a constituent part to make a pesticide which is registered under the provisions of this subchapter or if the pesticide is distributed under the provisions of an experimental use permit issued under § 2-16-409 or an experimental use permit issued by the United States Environmental Protection Agency.
  2. The applicant for registration shall file a statement with the board which shall include:
    1. The name and address of the applicant and the name and address of the person whose name will appear on the label, if other than the applicant's;
    2. The name of the pesticide;
    3. Other necessary information required for completion of the board's application for registration form; and
    4. A complete copy of the labeling accompanying the pesticide and a statement of all claims to be made for it, including the directions for use and the use classification as provided in the Federal Insecticide, Fungicide, and Rodenticide Act, 7 U.S.C. § 136 et seq.
  3. The board, when it deems it necessary in the administration of this subchapter, may require the submission of the complete formula of any pesticide, including the active and inert ingredients.
  4. The board may require a full description of the tests made and the results upon which the claims are based on any pesticide not registered under Section 3 of the Federal Insecticide, Fungicide, and Rodenticide Act, 7 U.S.C. § 136a, or on any pesticide on which restrictions are being considered. In the case of renewal of registration, a statement shall be required only with respect to information which is different from that furnished when the pesticide was registered or last reregistered.
  5. The board may prescribe other necessary information by rule.
  6. The applicant desiring to register a pesticide shall pay an annual registration fee as prescribed in the rules of the board for each pesticide registered by the applicant. The annual registration fee shall be no less than sixty dollars ($60.00) for each product registered. All registrations shall expire December 31 each year.
  7. Any registration approved by the board and in effect on December 31 for which a renewal application has been made and the proper fee paid shall continue in full force and effect until such time as the board notifies the applicant that the registration has been approved or denied, in accordance with the provisions of § 2-16-408. Forms for reregistration shall be mailed to registrants at least thirty (30) days before the due date.
  8. Provided the board is certified by the Administrator of the United States Environmental Protection Agency to register pesticides to meet special local needs under Section 24(c) of the Federal Insecticide, Fungicide, and Rodenticide Act, 7 U.S.C. § 136v(c), the board shall require information set forth under subsections (b)-(e) of this section and shall register a pesticide if it determines that:
    1. The pesticide's composition is such as to warrant the proposed claims for it;
    2. The pesticide's labeling and other material required to be submitted comply with the requirements of this subchapter;
    3. The pesticide will perform its intended function without unreasonable adverse effects on the environment;
    4. When used in accordance with widespread and commonly recognized practice, the pesticide will not generally cause unreasonable adverse effects on the environment; and
    5. The classification for general or restricted use is in conformity with Section 3(d) of the Federal Insecticide, Fungicide, and Rodenticide Act, 7 U.S.C. § 136a(d).
  9. The board shall not make any lack of essentiality a criterion for denying registration of any pesticide. Where two (2) pesticides meet the requirements of this section, one (1) should not be registered in preference to the other.

History. Acts 1975, No. 410, § 6; A.S.A. 1947, § 77-232; Acts 1993, No. 783, § 7; 2019, No. 315, § 10.

Amendments. The 2019 amendment substituted “rule” for “regulation” in (e) and “rules” for “regulations” in the first sentence of (f).

2-16-408. Registration of pesticides for local needs.

  1. Provided the State Plant Board is certified by the Administrator of the United States Environmental Protection Agency to register pesticides for those pesticides formulated to meet special local needs, the board shall consider the following for refusal to register, for cancellation, for suspension, or for legal recourse:
      1. If it does not appear to the board that the pesticide is such as to warrant the proposed claims for it or if the pesticide and its labeling and other material required to be submitted do not comply with the provisions of this subchapter or regulations adopted hereunder, it shall notify the applicant of the manner in which the pesticide, labeling, or other material required to be submitted fails to comply with the provisions of this subchapter so as to afford the applicant an opportunity to make the necessary corrections.
      2. If, upon receipt of the notice, the applicant does not make the required changes, the board may refuse to register the pesticide.
      3. The applicant may request a hearing as provided for in the Arkansas Administrative Procedure Act, § 25-15-201 et seq.;
    1. When the board determines that a pesticide or its labeling does not comply with the provisions of this subchapter or the regulations adopted hereunder, it may cancel the registration of a pesticide after a hearing in accordance with the provisions of the Arkansas Administrative Procedure Act, § 25-15-201 et seq.;
    2. When the board determines that there is an imminent hazard, it may on its own motion suspend the registration of a pesticide in conformance with the provisions of the Arkansas Administrative Procedure Act, § 25-15-201 et seq. Hearings shall be held with the utmost possible expedition; and
      1. Any person adversely affected by an order in this section may obtain judicial review of the order by filing in the circuit court, within sixty (60) days after the entry of the order, a petition praying that the order be set aside in whole or in part.
      2. A copy of the petition shall be forthwith transmitted by the clerk of the court to the board, and then the board shall file in the court the record of the proceedings on which it based its order.
      3. The court shall have jurisdiction to affirm or set aside the order complained of in whole or in part.
      4. The findings of the board with respect to questions of fact shall be sustained if supported by substantial evidence when considered on the record as a whole.
      5. Upon application, the court may remand the matter to the board to take further testimony if there are reasonable grounds for the failure to adduce such evidence in the prior hearing.
      6. The board may modify its findings and order by reason of the additional evidence so taken and shall file the additional record and any modification of the findings or order with the clerk of the court.
  2. If the board determines that any federally registered pesticide, with respect to its use in this state, requires further restrictions under § 2-16-406(d)(1), it may refuse to register or cancel or suspend the current registration of the pesticide in order to comply with such rules and regulations as may be adopted under § 2-16-406.

History. Acts 1975, No. 410, § 8; A.S.A. 1947, § 77-234.

2-16-409. Experimental-use permits.

  1. Provided the State Plant Board is authorized by the Administrator of the United States Environmental Protection Agency to issue experimental-use permits, the board may:
    1. Issue an experimental-use permit to any person applying for an experimental-use permit if it determines that the applicant needs that permit in order to accumulate information necessary to register a pesticide under § 2-16-407;
    2. Refuse to issue an experimental-use permit if it determines that the pesticide applications to be made under the proposed terms and conditions may cause unreasonable adverse effects on the environment;
    3. Prescribe terms, conditions, and a period of time for the experimental-use permit which shall be under the supervision of the board; and
    4. Revoke any experimental-use permit at any time if it finds that the permit's terms or conditions are being violated or that its terms and conditions are inadequate to avoid unreasonable adverse effects on the environment.
  2. Regulations adopted under this subchapter as to experimental-use permits as authorized by the Federal Insecticide, Fungicide, and Rodenticide Act, 7 U.S.C. § 136 et seq., shall not be inconsistent with the requirements of the Federal Insecticide, Fungicide, and Rodenticide Act and regulations promulgated thereunder.

History. Acts 1975, No. 410, § 7; A.S.A. 1947, § 77-233.

2-16-410. Misbranded pesticides.

A pesticide is misbranded:

  1. If its labeling bears any statement, design, or graphic representation relative to the pesticide or to its ingredients which is false or misleading in any particular;
  2. If it is an imitation of or is distributed under the name of another pesticide;
  3. If any word, statement, or other information required to appear on the label or labeling is not prominently placed thereon with such conspicuousness, compared with other words, statements, designs, or graphic matter in the labeling, and in such terms, as to render it likely to be read and understood by the ordinary individual under customary conditions of purchase and use;
  4. If the labeling does not contain a statement of the federal use classification under which the product is registered;
  5. If the labeling accompanying it does not contain directions for use which are necessary for effecting the purpose for which the product is intended, and the directions if complied with, together with any requirements imposed under Section 3(3) of the Federal Insecticide, Fungicide, and Rodenticide Act, 7 U.S.C. § 136a, are adequate to protect health and the environment;
  6. If the label does not bear:
    1. The name, brand, or trademark under which the pesticide is distributed;
    2. An ingredient statement on that part of the immediate container and on the outside container and wrapper of the retail package, if there is one, through which the ingredient statement on the immediate container cannot be clearly read, which is presented or displayed under customary conditions of purchase. The ingredient statement may appear prominently on another part of the container as permitted under Section 2(q)(2)(A) of the Federal Insecticide, Fungicide, and Rodenticide Act, 7 U.S.C. § 136(q)(2)(A), if the size or form of the container makes it impracticable to place it on the part of the retail package which is presented or displayed under customary conditions of purchase;
    3. A warning or caution statement which may be necessary and which, if complied with together with any requirements imposed under section 3(d) of the Federal Insecticide, Fungicide, and Rodenticide Act, 7 U.S.C. § 136a(d), would be adequate to protect the health and environment;
    4. The net weight or measure of the content;
    5. The name and address of the manufacturer, registrant, or person for whom manufactured; and
    6. The United States Environmental Protection Agency registration number assigned to each establishment in which it was produced and the United States Environmental Protection Agency registration number assigned to the pesticide, if required by regulations under the Federal Insecticide, Fungicide, and Rodenticide Act, 7 U.S.C. § 136 et seq.;
  7. If that pesticide contains any substance in quantities highly toxic to man unless the label bears, in addition to other label requirements:
    1. The skull and crossbones;
    2. The word “POISON” in red prominently displayed on a background of distinctly contrasting color; and
    3. A statement of a practical treatment, first aid or otherwise, to be used in case of poisoning by the pesticide;
  8. If the pesticide container does not bear a registered label; and
  9. If a spray adjuvant label fails to state the type or function of the functioning agents.

History. Acts 1975, No. 410, § 5; A.S.A. 1947, § 77-231.

2-16-411. Unlawful actions — Exceptions.

    1. It is unlawful for any person to distribute in this state any of the following:
      1. Any pesticide which has not been registered under:
        1. The provisions of this subchapter; or
        2. The provisions of the Federal Insecticide, Fungicide, and Rodenticide Act, 7 U.S.C. § 136 et seq.;
      2. Any pesticide if any of the claims made for it or any of the directions for its use or other labeling differs from the representations made in connection with its registration, or if the composition of a pesticide differs from its composition as represented in connection with its registration. A change in the labeling or formulation of a pesticide may be made within a registration period without requiring reregistration of the product if the registration is amended to reflect the change and if the change will not violate any provision of the Federal Insecticide, Fungicide, and Rodenticide Act or this subchapter;
      3. Any pesticide unless it is in the registrant's or the manufacturer's unbroken immediate container and there is affixed to the container, and to the outside container or wrapper of the retail package if there is one through which the required information on the immediate container cannot be clearly read, a label bearing the information required in this subchapter and the regulations adopted under this subchapter. The State Plant Board may designate that certain specified economic poisons may be sold by the manufacturers or dealers in bulk, in which case the label information required and any other statements required by this subchapter must be stated in or attached to the invoice. In addition, a copy of the invoice must be given to the purchaser at the time the economic poison is delivered;
      4. Any pesticide which has not been colored or discolored under the provisions of § 2-16-406(a)(4) or of Section 25(c)(5) of the Federal Insecticide, Fungicide, and Rodenticide Act, 7 U.S.C. § 136w(c)(5);
      5. Any pesticide which is adulterated or misbranded or any device which is misbranded; and
      6. Any pesticide in containers which are unsafe due to damage.
    2. However, this subsection shall not apply to:
      1. Any carrier while lawfully engaged in transporting a pesticide within this state if the carrier shall, upon request, permit the board to copy all records showing the transactions in and movement of the pesticides or devices;
      2. Public officials of this state and the federal government while engaged in the performance of their official duties in administering state or federal pesticide laws or regulations or while engaged in pesticide research;
      3. The manufacturer or shipper of a pesticide for experimental use only by or under the supervision of an agency of this state or of the federal government authorized by law to conduct research in the field of pesticides if the manufacturer or shipper holds a valid experimental-use permit as provided for by § 2-16-409 or by the United States Environmental Protection Agency; or
      4. Any person who ships a substance or mixture of substances being put through tests, in which the purpose is only to determine its value for pesticide purposes or to determine its toxicity or other properties, from which the user does not expect to receive any benefit in pest control from its use.
  1. It shall be unlawful for any person to:
    1. Detach, alter, deface, or destroy, wholly or in part, any label or labeling provided for in this subchapter or in regulations adopted under this subchapter or to add any substance to or take any substance from a pesticide in a manner that may defeat the purpose of this subchapter or the regulations adopted hereunder;
    2. Use for his or her own advantage or to reveal, other than to the board, to properly designated state or federal officials, to employees of the state or federal executive agencies, to the courts of the state in response to a subpoena, to physicians, or in emergencies to pharmacists and other qualified persons for use in the preparation of antidotes, any information relative to formulas of products acquired by authority of § 2-16-407 or any information judged by the board as containing or relating to trade secrets or commercial or financial information obtained by authority of this subchapter and marked as privileged or confidential by the registrant;
    3. Handle, transport, store, display, or distribute pesticides in such a manner as to endanger man and his or her environment or to endanger food, feed, or any other products that may be transported, stored, displayed, or distributed with the pesticides;
    4. Dispose of, discard, or store any pesticides or pesticide containers in such a manner as to cause injury to humans, vegetation, crops, livestock, wildlife, or beneficial insects or to pollute any water supply or waterway; or
    5. Refuse or otherwise fail to comply with the provisions of this subchapter, the regulations adopted hereunder, or any lawful order of the board.
  2. No person shall transport, store, or dispose of any pesticide or pesticide containers in such a manner as to cause injury to humans, vegetation, crops, livestock, wildlife, or beneficial insects or to pollute any waterway in a way harmful to any wildlife therein. The board may promulgate rules and regulations governing the storing and disposal of pesticides or pesticide containers. In determining these standards, the board shall take into consideration any regulations issued by the United States Environmental Protection Agency.
  3. No pesticide or device shall be deemed in violation of this subchapter when intended solely for export to a foreign country, and when prepared or packed according to the specification or directions of the purchaser. If not so exported, all the provisions of this subchapter shall apply.

History. Acts 1975, No. 410, §§ 10, 11; A.S.A. 1947, §§ 77-236, 77-237.

2-16-412. Enforcement.

    1. The sampling and examination of pesticides or devices shall be made by the State Plant Board for the purpose of determining whether they comply with the requirements of this subchapter.
    2. The board is authorized to enter any distributor's premises, including any vehicle of transport, at all reasonable times in order to have access to pesticides or devices packaged or labeled for distribution and to collect samples of the contents, containers, or labeling for the pesticides or devices.
    3. If an analysis is made of the samples, a copy of the results of the analysis shall be furnished promptly to the owner, operator, or agent in charge.
    4. If it appears from the examination that a pesticide or device fails to comply with the provisions of this subchapter or rules adopted hereunder and the board contemplates instituting criminal proceedings against any person, the board shall cause appropriate notice to be given to that person.
    5. Any person so notified shall be given an opportunity within a reasonable time to present his or her views, either orally or in writing, with regard to the contemplated proceedings.
    6. If thereafter, in the opinion of the board, it appears that the provisions of this subchapter or rules adopted hereunder have been violated by the person, the board shall refer a copy of the results of the analysis or the examination of the pesticide or device to the prosecuting attorney for the county in which the violation occurred.
    1. For the purpose of carrying out the provisions of this subchapter, the board may enter upon any public or private premises at reasonable times in order to inspect storage or disposal areas or sample pesticides being applied or to be applied.
    2. Should the board be denied access to any premises or other areas where access was sought for the purposes set forth in this subchapter, it may apply to any court of competent jurisdiction for a search warrant authorizing access to those premises or other areas for the purposes set forth in this subchapter. The court may, upon such application, issue the search warrant for the purposes requested.
  1. The board, with or without the aid and advice of the prosecuting attorney, is charged with the duty of enforcing the requirements of this subchapter and any rules issued thereunder. In the event a prosecuting attorney refuses to act on behalf of the board, the Attorney General may so act.
  2. The board is authorized to apply to any court of competent jurisdiction for, and the court upon hearing and for cause shown may grant, a temporary or permanent injunction. This injunction shall restrain any person from violating any provisions of this subchapter or of the rules made under authority of this subchapter and shall be without bond.
  3. Nothing in this subchapter shall be construed as requiring the board to report minor violations of this subchapter for prosecution or for the institution of condemnation proceedings when it believes that the public interest will be served best by a suitable notice of warning in writing.

History. Acts 1975, No. 410, § 12; A.S.A. 1947, § 77-238.

2-16-413. Issuance of stop-sale, etc., order.

  1. When the State Plant Board has reasonable cause to believe a pesticide or device is being distributed, stored, transported, or used in violation of any of the provisions of this subchapter, or of any of the rules prescribed under the authority of this subchapter, it may issue and serve a written stop-sale, use, or removal order upon the owner or custodian of the pesticide or device.
  2. If the owner or custodian is not available for service of the order upon him or her, the board may attach the order or other suitable marking to the pesticide or device and notify the owner or custodian and the registrant.
  3. The pesticide or device shall not be sold, used, or removed until the provisions of this subchapter have been complied with and until the pesticide or device has been released in writing under conditions specified by the board or the violation has been otherwise disposed of as provided in this subchapter by a court of competent jurisdiction.

History. Acts 1975, No. 410, § 13; A.S.A. 1947, § 77-239.

2-16-414. Hearing on stop-sale, etc., order.

    1. After service of a stop-sale, use, or removal order is made upon any person, either that person, the registrant, or the State Plant Board may file an action in a court of competent jurisdiction in the county in which a violation of this subchapter or rules adopted hereunder is alleged to have occurred for an adjudication of the alleged violation.
    2. The court in the action may issue temporary or permanent injunctions, mandatory or restraining orders, and such intermediate orders as it deems necessary or advisable.
    3. The court may order condemnation of any pesticide or device which does not meet the requirements of this subchapter or rules adopted hereunder.
    1. If the pesticide or device is condemned, it shall, after entry of decree, be disposed of by destruction or sale as the court directs.
    2. If the pesticide or device is sold, the proceeds, less costs including legal costs, shall be paid to the State Treasury as provided in § 2-16-419.
    3. The pesticide or device shall not be sold contrary to the provisions of this subchapter or rules adopted hereunder.
    4. Upon payment of costs and execution and delivery of a good and sufficient bond conditioned that the pesticide or device shall not be disposed of unlawfully, the court may direct that the pesticide or device be delivered to its owner for relabeling, reprocessing, removing from the state, or otherwise bringing the product into compliance.
  1. When a decree of condemnation is entered against the pesticide or device, court costs, fees, storage, and other proper expenses shall be awarded against the person, if any, appearing as claimant of the pesticide.
  2. No state court shall allow the recovery of damages from administrative action taken or for stop-sale, use, or removal if the court finds that there was probable cause for such action.

History. Acts 1975, No. 410, §§ 14, 18; A.S.A. 1947, §§ 77-240, 77-244.

2-16-415. Subpoenas.

The State Plant Board may issue subpoenas to compel the attendance of witnesses or production of books, documents, and records in the state in any hearing affecting the authority or privilege granted by a registration issued under the provisions of this subchapter.

History. Acts 1975, No. 410, § 17; A.S.A. 1947, § 77-243.

2-16-416. Intergovernmental cooperation.

The State Plant Board may cooperate, receive grants-in-aid, and enter into cooperative agreements or contracts with any agency of the federal government or this state or its subdivisions or with any agency of another state, in order to:

  1. Secure uniformity of rules;
  2. Enter into cooperative agreements with the United States Environmental Protection Agency to register pesticides under the authority of this subchapter and the Federal Insecticide, Fungicide, and Rodenticide Act, 7 U.S.C. § 136 et seq.; and
  3. Cooperate in the enforcement of the federal pesticide control laws through the use of state or federal personnel and facilities and implement cooperative enforcement programs, including, but not limited to, the registration and inspection of establishments.

History. Acts 1975, No. 410, § 15; A.S.A. 1947, § 77-241.

2-16-417. Publication of information.

The State Plant Board may publish, in such form as it may deem proper, results of analyses based on official samples as compared with the analyses guaranteed and information concerning the distribution of pesticides.

History. Acts 1975, No. 410, § 16; A.S.A. 1947, § 77-242.

2-16-418. Protection of trade secrets and other information.

  1. In submitting data required by this subchapter, the applicant may:
    1. Clearly mark any portions thereof which in his or her opinion are trade secrets or commercial or financial information; and
    2. Submit such marked material separately from other material required to be submitted under this subchapter.
  2. Notwithstanding any other provision of this subchapter, the State Plant Board shall not make public any information which, in its judgment, contains or relates to trade secrets or commercial or financial information obtained from a person and is privileged or confidential, except that, when necessary to carry out the provisions of this subchapter, information relating to formulas of products acquired by authorization of this subchapter may be revealed to any state or federal agency consulted or in findings of fact issued by the board.
    1. If the board proposes to release for inspection information which the applicant or registrant believes to be protected from disclosure under subsection (b) of this section, it shall notify the applicant or registrant, in writing, by certified mail.
    2. The board shall not, after mailing the notice as provided in this subsection, make available for inspection the data until thirty (30) days after receipt of the notice by the applicant or registrant.
    3. During this period, the applicant or registrant may institute an action in an appropriate court for a declaratory judgment as to whether the information is subject to protection under subsection (b) of this section.

History. Acts 1975, No. 410, § 19; A.S.A. 1947, § 77-245.

2-16-419. Disposition of funds.

All moneys received by the State Plant Board under the provisions of this subchapter and the rules adopted hereunder shall be deposited into the State Plant Board Fund of the State Treasury and be used for carrying out the provisions of this subchapter.

History. Acts 1975, No. 410, § 21; A.S.A. 1947, § 77-247.

Subchapter 5 — Johnson Grass Control and Eradication

Effective Dates. Acts 1967, No. 186, § 14: Feb. 28, 1967. Emergency clause provided: “It is hereby found and determined by the General Assembly that many counties in this state are plagued with an acute and rapidly progressing Johnson Grass problem; that the land upon which such grass grows decreases in value and fails to produce an adequate yield of crops, thereby affecting the economy of this state; that there is no existing program to combat this problem in these counties; and that in order to control and eradicate Johnson Grass and to insure record yields of crops on all lands in this state, it is necessary that this act become effective immediately. Therefore, an emergency is hereby declared to exist and this act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after its passage and approval.”

Acts 1975, No. 287, § 12: Mar. 3, 1975. Emergency clause provided: “It is hereby found and determined by the General Assembly that the Johnson Grass Control and Eradication Law of this state is in urgent need of clarification and modification to enable the various areas of the state to take advantage of its provisions to alleviate the problem of Johnson Grass in the state, and that this act is designed to so clarify and modify said laws and should be given effect immediately. Therefore, an emergency is hereby declared to exist and this act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after its passage and approval.”

Acts 2009, No. 1480, § 117: Apr. 10, 2009. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that this act makes various revisions to Arkansas election laws that are designed to improve the administration of elections and special elections and that these revisions should be implemented as soon as possible so that the citizens of this state may benefit from improved election procedures. Therefore, an emergency is declared to exist and this act being immediately necessary for the preservation of the public peace, health, and safety shall become effective on: (1) The date of its approval by the Governor; (2) If the bill is neither approved nor vetoed by the Governor, the expiration of the period of time during which the Governor may veto the bill; or (3) If the bill is vetoed by the Governor and the veto is overridden, the date the last house overrides the veto.”

Cross References. State Plant Board Operations and Facilities Construction Fund, § 2-16-108.

2-16-501. Title.

This subchapter shall be known as the “Johnson Grass Control and Eradication Act”.

History. Acts 1967, No. 186, § 1; 1975, No. 287, § 1; A.S.A. 1947, § 77-1701.

2-16-502. Applicability.

The provisions of this subchapter shall be applicable to and shall be enforced only in those areas of this state established as Johnson grass control and eradication districts in the manner authorized herein. For the purposes of this subchapter, a district may consist of one (1) or more contiguous townships in one (1) or more contiguous counties, but in no event shall a single district lie in more than three (3) counties.

History. Acts 1967, No. 186, § 2; 1975, No. 287, § 2; A.S.A. 1947, § 77-1702.

2-16-503. Penalty.

  1. Any landowner or any person having control of any land in a Johnson grass control and eradication district who fails or refuses to control or eradicate Johnson grass on his or her lands shall be guilty of a violation.
    1. Upon conviction, an offender shall be subject to a fine of not less than fifty dollars ($50.00) nor more than one hundred dollars ($100) for each violation.
    2. Each day a violation shall exist or continue shall constitute a separate offense.

History. Acts 1967, No. 186, § 8; 1975, No. 287, § 8; A.S.A. 1947, § 77-1708; Acts 2005, No. 1994, § 9.

Amendments. The 2005 amendment substituted “violation” for “misdemeanor” in (a).

2-16-504. Petition to establish district.

    1. Upon the petition of fifty (50) landowners filed with the county court or courts in which a proposed district lies, the county court or courts shall declare that a threat to the agricultural economy of the proposed district exists by reason of the uncontrolled growth of Johnson grass.
    2. The county court or courts shall cause the question of whether the district shall be established and this subchapter shall be enforced in the district to be submitted to the landowners of the proposed district.
    1. Immediately upon the submission of the petition to the county court or courts, the court or courts shall issue a proclamation calling the election in accordance with § 7-11-201 et seq. and notify the county board or boards of election commissioners in writing. The election shall be held on a date in accordance with § 7-11-201 et seq. but in no event more than ninety (90) days following publication of the proclamation.
    2. This special election shall be held for the purpose of submitting to the landowners of the proposed district the question of whether the district shall be established and the provisions of this subchapter shall be enforced in the district.

History. Acts 1967, No. 186, § 3; 1975, No. 287, § 3; A.S.A. 1947, § 77-1703; Acts 2005, No. 2145, § 1; 2007, No. 1049, § 1; 2009, No. 1480, § 1.

Amendments. The 2005 amendment redesignated former (b) as present (b)(1)(A) and (B); substituted “thirty (30)” for “forty-five (45)” in (b)(1)(A); and added (b)(2).

The 2007 amendment rewrote (b).

The 2009 amendment substituted “§ 7-11-201 et seq.” for “§ 7-5-103(b)” twice in (b)(1).

2-16-505. Establishment of district.

  1. When the question as to whether this subchapter shall be enforced in any district is submitted to the landowners of the district at any special election called for that purpose, the question shall be submitted to the landowners in substantially the following form on the ballot:
    1. Only qualified electors of the proposed district who are owners of real property in the proposed district shall be permitted to vote in the election.
    2. Every person voting in the election shall be required to sign an affidavit that the person is an owner of real property in the proposed district.
    1. If in any special election a majority of the landowners voting on the question shall vote against the establishment of the district, the question shall not again be submitted to the landowners of the district for one (1) year.
      1. If at the special election the majority of the landowners voting on the question shall vote for the establishment of the district, then the vote shall be entered on the record, and the county clerk or clerks shall notify the judge or judges who shall declare the designated area to be a Johnson grass control and eradication district and shall cause notice to be published in a newspaper having a general circulation in the electing district.
      2. The notice shall state that the district has been established, that the provisions of this subchapter shall be applicable in the district, and that all landowners in the district shall take steps to control and eradicate Johnson grass on all lands owned by them or under their control, in accordance with this subchapter.
      1. Within ten (10) days after the publication of the notice, the county judge or judges in which a district lies shall appoint a district Johnson grass control board composed of three (3) landowners in the district to advise and assist in the administration of this subchapter in that district.
        1. If the district is in a single county, the county judge of that county shall appoint the three (3) members of the board.
        2. If a district lies within two (2) counties, the county judge in which the greater acreage of the district lies shall appoint two (2) members of the board, and the county judge of the other county in which a portion of the district lies shall appoint one (1) member.
        3. In the event a district lies within three (3) counties, the county judge of each county in which a portion of the district lies shall appoint one (1) member to the board.
      1. The district Johnson grass control board shall select and employ a district Johnson grass control and eradication supervisor, who shall be a resident of the district and who shall have a thorough knowledge of ways and means of controlling and eradicating Johnson grass.
      2. The supervisor, through the direction of the board, shall be charged with the administration and enforcement of this subchapter in the district.
        1. The supervisor shall be a full-time employee of the district and shall receive such salary and other compensation and expenses as shall be determined by the board.
        2. The county court in each county in which a portion of a district lies shall provide from the county general fund, on a basis proportional to the amount of district acreage in the county to the total acreage in the district, such funds as shall be sufficient to pay the salary of the supervisor and to otherwise carry out the purposes of this subchapter in the district.

FOR THE ESTABLISHMENT OF A JOHNSON GRASS CONTROL AND ERADICATION DISTRICT COMPOSED OF AGAINST THE ESTABLISHMENT OF A JOHNSON GRASS CONTROL AND ERADICATION DISTRICT COMPOSED OF

Click to view form.

History. Acts 1967, No. 186, § 4; 1975, No. 287, § 4; A.S.A. 1947, § 77-1704.

2-16-506. Powers and duties of district supervisors.

  1. The district Johnson grass control and eradication supervisor of each district shall have and exercise the following powers and duties, among others, regarding the Johnson grass eradication program:
    1. To supervise the eradication of Johnson grass;
    2. To inspect property in the district to determine whether this subchapter is being complied with by those owning or having control of such lands;
    3. To inform himself or herself of the nature of Johnson grass and to follow the recommendations of the Director of the State Plant Board and the College of Agriculture of the University of Arkansas as to the best methods of controlling, eradicating, and preventing the dissemination of Johnson grass; and
    4. Through the director, to enter into agreements with the state and federal agencies for the cooperative control of Johnson grass.
  2. The supervisor shall periodically inspect all lands in the district. Annually and at such other times as may be required by the district board the supervisor shall make a complete report to the district board and the director of the progress being made in the district in the control and eradication of Johnson grass.

History. Acts 1967, No. 186, § 6; 1975, No. 287, § 6; A.S.A. 1947, § 77-1706.

2-16-507. State assistance.

The Director of the State Plant Board is authorized to cooperate with and assist the district Johnson grass control board and the supervisor in the control and eradication of Johnson grass in the district when requested to do so by the board or the supervisor.

History. Acts 1967, No. 186, § 7; 1975, No. 287, § 7; A.S.A. 1947, § 77-1707.

2-16-508. Civil remedies.

  1. Notwithstanding the criminal penalty for the violation of this subchapter, the existence or growth of Johnson grass in a Johnson grass control and eradication district is declared to be a public and common nuisance, and it is the duty of the prosecuting attorney in whose district the offense occurs to bring an action to enjoin the nuisance.
  2. Any landowner whose land is adjacent to or within one hundred feet (100') of land on which the Johnson grass nuisance is permitted or maintained may bring a civil action for injunction against any person permitting or maintaining the nuisance and shall, in addition to injunctive relief, be entitled to recover double the actual damages sustained as a result of the nuisance as well as a reasonable attorney's fee and cost of bringing the action.

History. Acts 1967, No. 186, § 10; 1975, No. 287, § 10; A.S.A. 1947, § 77-1710.

2-16-509. Duties of landowners.

It shall be the duty of the State of Arkansas or any department thereof, any public utility, railroad, levee and drainage district, county, or any municipality, and every other person, firm, corporation, or association owning or having control over any lands in a Johnson grass control and eradication district to:

  1. Control and eradicate Johnson grass on all lands, rights-of-way, and easements owned, occupied, or controlled by them;
  2. Employ methods approved by the Director of the State Plant Board for control and eradication of Johnson grass as the district board shall direct; and
  3. Comply with all orders and rules of the district board and the director.

History. Acts 1967, No. 186, § 5; 1975, No. 287, § 5; A.S.A. 1947, § 77-1705.

2-16-510. Acceptance of gifts, etc.

The district Johnson grass control board is authorized to accept gifts, grants, and donations for use in carrying out the purpose of controlling and eradicating Johnson grass in the district.

History. Acts 1967, No. 186, § 9; 1975, No. 287, § 9; A.S.A. 1947, § 77-1709.

2-16-511. Abolition of district.

  1. Any district established under the provisions of this subchapter may be abolished upon a majority vote of the landowners of the district at a special election called for that purpose.
  2. The question of abolishing a district shall be submitted to the landowners of the district in the same manner as is provided in § 2-16-502.

History. Acts 1967, No. 186, § 11; 1975, No. 287, § 11; A.S.A. 1947, § 77-1711.

Subchapter 6 — Arkansas Boll Weevil Suppression Eradication Act

Effective Dates. Acts 1991, No. 710, § 22: Mar. 22, 1991. Emergency clause provided: “It is hereby found and determined by the General Assembly that the boll weevil is not only a pest but that it threatens the growth of cotton in this state and costs many thousands of dollars in damages annually; that the purpose of this act is to establish a program to control the boll weevil and should be given effect immediately. Therefore, an emergency is hereby declared to exist and this act being necessary to the public peace, health and welfare shall be in effect from the date of its passage and approval.”

Acts 1995, No. 529, § 8: Mar. 6, 1995. Emergency clause provided: “It is hereby found and determined by the General Assembly that the Arkansas boll weevil suppression program has been and continues to be a valuable tool in controlling the boll weevil population in the state; that the boll weevil suppression program law is in need of minor revisions to promote and strengthen the program; that such revisions are urgently needed to assure the continued success of the program and that this act is designed to effect those revisions and should be given effect immediately. Therefore, an emergency is hereby declared to exist and this act being necessary for the preservation of the public peace, health and safety shall be in full force and effect from and after its passage and approval.”

Acts 1997, No. 317, § 8: Mar. 3, 1997. Emergency clause provided: “It is hereby found and determined by the General Assembly that Act 10 of the First Extraordinary Session of 1995 abolished the Joint Interim Committee on Agriculture and Economic Development and in its place established separate House and Senate Committees; that various sections of the Arkansas Code refer to the Joint Interim Committee on Agriculture and Economic Development and should be corrected to refer to the House and Senate Interim Committees; that this act so provides; and that this act should go into effect immediately in order to make the laws compatible as soon as possible. Therefore, an emergency is declared to exist and this act being immediately necessary for the preservation of the public peace, health and safety shall become effective on the date of its approval by the Governor. If the bill is neither approved nor vetoed by the Governor, it shall become effective on the expiration of the period of time during which the Governor may veto the bill. If the bill is vetoed by the Governor and the veto is overridden, it shall become effective on the date the last house overrides the veto.”

Acts 2003, No. 1726, § 3: Apr. 22, 2003. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that the representation on the board of directors of the certified crop growers' organization should be proportional to the acreage of cotton within each eradication zone; that this act so provides; and that this act should go into effect as soon as possible in order to provide appropriate representation of the cotton growers within each zone. Therefore, an emergency is declared to exist and this act being immediately necessary for the preservation of the public peace, health, and safety shall become effective on: (1) The date of its approval by the Governor; (2) If the bill is neither approved nor vetoed by the Governor, the expiration of the period of time during which the Governor may veto the bill; or (3) If the bill is vetoed by the Governor and the veto is overridden, the date the last house overrides the veto.”

2-16-601. Title.

This subchapter shall be known as the “Arkansas Boll Weevil Suppression Eradication Act”.

History. Acts 1991, No. 710, § 1.

Case Notes

Constitutionality.

There was no equal protection violation stemming from the fact that the Arkansas Boll Weevil Suppression Eradication Act, § 2-16-601 et seq., authorized cotton growers who elected to implement an eradication program to later elect to modify or recall that program; the Act created two separate means for achieving the legitimate purpose of eradicating the boll weevil, one for the growers and one for the Arkansas State Plant Board, and the Board's power to impose an eradication program was independent of any action taken by the growers, thus, all the commercial cotton growers of Arkansas were subject to the same authority. Rose v. Ark. State Plant Bd., 363 Ark. 281, 213 S.W.3d 607 (2005).

2-16-602. Declaration of policy — Purpose — Construction.

  1. The General Assembly has found and determined and does hereby declare that the boll weevil is a public nuisance, a pest, and a menace to the cotton industry. Due to the interstate nature of the boll weevil infestation, it is necessary to secure the cooperation of cotton growers and other state and federal governments to carry out a program of boll weevil suppression or eradication.
  2. The purpose of this subchapter is to secure the suppression or eradication of the boll weevil and to provide for certification of a cotton growers' organization to cooperate with state and federal agencies in the administration of any available cost-sharing programs for the suppression or eradication of the boll weevil.
  3. This subchapter should be liberally construed to achieve the purposes provided in this section.

History. Acts 1991, No. 710, § 2; 1997, No. 330, § 1.

2-16-603. Definitions.

As used in this subchapter:

    1. “Assessment” means the amount charged to each cotton grower to finance, in whole or part, a program to suppress or eradicate the boll weevil in this state.
    2. The grower's charge will be calculated on a per-acre basis;
  1. “Boll weevil” means Anthonomus grandis Boheman in any state of development;
  2. “Certificate” means a document issued or authorized by the State Plant Board indicating that a regulated article is not contaminated with boll weevils;
  3. “Cotton” means any cotton plant or cotton plant product upon which the boll weevil is dependent for completion of any portion of its life cycle;
  4. “Cotton grower” means any person, other than a cash rent landlord, who is engaged in or has an economic risk in the business of producing, or causing cotton to be produced, for market;
  5. “Host” means any plant or plant product upon which the boll weevil is dependent for completion of any portion of its life cycle;
  6. “Infested” means actually infested with a boll weevil or so exposed to infestation that it would be reasonable to believe that an infestation exists;
  7. “Permit” means a document issued or authorized by the board to provide for the movement of regulated articles to restricted designations for limited handling, utilization, or processing;
  8. “Person” means any individual, partnership, corporation, company, society, or association, or other business entity;
  9. “Regulated article” means any article of any character carrying or capable of carrying the boll weevil, including, but not limited to, cotton plants, seed cotton, cottonseed, other hosts, gin trash, gin equipment, mechanical cotton pickers, and other equipment associated with cotton production, harvesting, or processing; and
  10. “State Plant Board” means the agricultural plant regulatory agency of the State of Arkansas.

History. Acts 1991, No. 710, § 3; 1997, No. 330, § 2.

2-16-604. Criminal penalties.

  1. Any person who shall violate any of the provisions of this subchapter or the rules promulgated hereunder, or who shall alter, forge, or counterfeit, or use without authority any certificate or permit or other document provided for in this subchapter or in the rules promulgated hereunder, shall be guilty of a Class C misdemeanor.
  2. Any person who shall, except in compliance with the rules of the State Plant Board, move any regulated article into this state from any other state which the board found in the rules is infested by the boll weevil shall be guilty of a Class C misdemeanor.

History. Acts 1991, No. 710, § 11.

2-16-605. Rules.

    1. The State Plant Board may promulgate rules restricting the pasturage of livestock, entry by persons, and location of honeybee colonies, or other activities affecting the boll weevil eradication program in any premises in an eradication zone which have been or are to be treated with pesticides or otherwise treated to cause the eradication of the boll weevil, or in any other area that may be affected by such treatments.
    2. The board may also adopt such other rules as it deems necessary to further effectuate the purposes of this subchapter.
  1. All rules promulgated under this subchapter shall be reviewed by the House Committee on Agriculture, Forestry, and Economic Development and the Senate Committee on Agriculture, Forestry, and Economic Development or appropriate subcommittees of the House Committee on Agriculture, Forestry, and Economic Development and the Senate Committee on Agriculture, Forestry, and Economic Development.

History. Acts 1991, No. 710, §§ 10, 18; 1997, No. 317, § 2.

2-16-606. Cooperative programs authorized.

The State Plant Board is hereby authorized to carry out programs to suppress or eradicate the boll weevil in this state. The board is authorized to cooperate with any agency of the federal government, any state, any other agency in this state, or any person engaged in growing, processing, marketing, or handling cotton, or any group of such persons in this state, in programs to effectuate the purposes of this subchapter and may enter into written agreements to effectuate such purposes. Such agreements may provide for cost sharing and for division of duties and responsibilities under this subchapter and may include other provisions generally to effectuate the purposes of this subchapter.

History. Acts 1991, No. 710, § 4.

2-16-607. Entry of premises — Suppression or eradication activities — Inspections.

  1. The State Plant Board, or its authorized representatives, shall have authority to enter cotton fields, cotton processing facilities, and other premises in order to carry out suppression or eradication activities, including, but not limited to, treatment with pesticides, monitoring, and destruction of growing cotton or other host plants, as may be necessary to carry out the provisions of this subchapter.
  2. The board shall have authority to make inspection of any fields or premises in this state and any property located therein or thereon for the purpose of determining whether such property is infested with the boll weevil. Such inspection and other activities may be conducted in a reasonable manner without a warrant at any reasonable daylight hour falling between sunrise and sunset.
  3. Any judge of this state will, within his or her jurisdiction, and upon proper cause shown, issue a warrant giving the board the right of entry to any premises for the purpose of carrying out the provisions of this section or other activities authorized by this subchapter.

History. Acts 1991, No. 710, § 5; 1993, No. 854, § 1.

2-16-608. Reports.

Every person growing cotton in this state shall furnish to the State Plant Board, or its designated representative, on forms supplied by the board or its cooperators, such information as the board may require concerning the size and location of all commercial cotton fields and of noncommercial patches of cotton grown as ornamentals or for other purposes.

History. Acts 1991, No. 710, § 6; 1993, No. 854, § 2.

2-16-609. Quarantine.

  1. The State Plant Board is authorized to promulgate rules quarantining this state, or any portion thereof, and governing the storage or other handling in the quarantined areas of regulated articles and the movement of regulated articles into or from such areas. The board shall determine when such action is necessary, or appears reasonably necessary, to prevent or retard the spread of the boll weevil.
  2. The board is also authorized to promulgate rules governing the movement of regulated articles from other states or portions thereof into this state when such state is known to be infested with the boll weevil. The promulgation of these rules shall conform in all aspects to the Arkansas Administrative Procedure Act, § 25-15-201 et seq., as amended, and sound principles of quarantines.

History. Acts 1991, No. 710, § 7.

2-16-610. Designation of eradication zones — Prohibition of planting of cotton — Participation in suppression eradication program — Penalties.

  1. The State Plant Board may designate by rule one (1) or more areas of this state as eradication zones where boll weevil eradication programs will be undertaken.
    1. The board may promulgate reasonable rules regarding areas where cotton cannot be planted within an eradication zone when there is reason to believe it will jeopardize the success of the program or present a hazard to public health or safety.
    2. The board may issue rules prohibiting the planting of noncommercial cotton in such eradication zones, and requiring that all growers of commercial cotton in the eradication zones participate in a program of boll weevil eradication including cost sharing as prescribed in the rules.
  2. Notice of the prohibition and requirement shall be given by publication for one (1) day each week for three (3) successive weeks in a newspaper having general circulation in the affected area.
    1. The board may set by rule a reasonable schedule of penalty fees to be assessed when growers in designated eradication zones do not meet the requirements of rules issued by the board with respect to reporting of acreage and participation in cost sharing as prescribed by rule.
    2. The penalty fees shall not exceed a charge of twenty-five dollars ($25.00) per acre per year. Any such penalty is in addition to any assessments otherwise due, which assessments shall also remain payable.
    1. When a grower fails to meet the requirements of rules promulgated by the board, the board in eradication zones may destroy cotton not in compliance with such rules.
    2. Cost incurred by the board shall be assessed against the grower.

History. Acts 1991, No. 710, § 8; 1997, No. 330, §§ 3, 4; 2019, No. 315, §§ 11, 12.

Amendments. The 2019 amendment substituted “rule” for “regulation” in (a) and twice in (d)(1).

Case Notes

Authority of Board.

Subdivision (b)(2) of this section specifically authorized the State Plant Board to issue regulations requiring commercial cotton growers to participate in and share the costs of an eradication program, and there was no limiting language in this section or § 2-16-614 making the Board's authority dependent upon referendum approval; thus, the court rejected the growers' claim that a referendum under § 2-16-614 was required before any assessment for the costs of the eradication program could be levied under this section. Rose v. Ark. State Plant Bd., 363 Ark. 281, 213 S.W.3d 607 (2005).

2-16-611. Destruction or treatment of volunteer or other noncommercial cotton in eradication zones — Liability.

  1. The State Plant Board shall have authority to destroy, or, at its discretion, cause to be treated with pesticides, volunteer or other noncommercial cotton and to establish procedures for the purchase and destruction of commercial cotton in eradication zones when the board deems such action necessary to effectuate the purposes of this subchapter.
    1. No payment shall be made by the board to the owner or lessee for the destruction or injury of any cotton which was planted in an eradication zone after publication of notice as provided in this subchapter, or was otherwise handled in violation of this subchapter, or the rules adopted pursuant thereto.
    2. However, the board shall pay for losses resulting from the destruction of cotton which was planted in such zones before promulgation of such notice.

History. Acts 1991, No. 710, § 9.

2-16-612. Certification of cotton growers' organization — Requirements.

  1. The State Plant Board may certify a cotton growers' organization for the purpose of entering into agreements with the State of Arkansas, other states, the federal government, and such other parties as may be necessary to carry out the purposes of this subchapter.
    1. In order to be eligible for certification by the State Plant Board, the cotton growers' organization must demonstrate to the satisfaction of the State Plant Board that:
      1. It is a nonprofit organization and could qualify as a tax-exempt organization under § 501(a) of the Internal Revenue Code of 1986, as amended.
      2. Membership in the organization will consist of all cotton growers in an eradication zone.
    2. The organization shall have only one (1) class of members with each member entitled to only one (1) vote.
  2. The organization's board of directors shall be composed as follows:
    1. Two (2) Arkansas cotton growers recommended by the State Plant Board, to be appointed by the Governor;
    2. Three (3) Arkansas cotton growers recommended by the Arkansas Farm Bureau Federation, to be appointed by the Governor;
    3. Three (3) Arkansas cotton growers recommended by the Agricultural Council of Arkansas, to be appointed by the Governor;
    4. One (1) representative of state government from this state recommended by the State Plant Board, to be appointed by the Governor; and
    5. The cochairs of the University of Arkansas Boll Weevil Eradication Technical Advisory Committee will serve as ex officio members of the cotton growers' organization board to serve in an advisory capacity.
    1. All books and records of accounts and minutes of proceedings of the organization shall be available for inspection or audit by the board at any reasonable time.
    2. Employees or agents of the growers' organization who handle funds of the organization shall be adequately bonded in an amount to be determined by the State Plant Board.
    1. In addition to any authority granted the certified cotton growers' organization, the organization may borrow funds from any bona fide lender, including any state entity or authority, instruct the Arkansas Development Finance Authority to issue bonds under § 15-5-101 et seq., or to issue bonds in any other appropriate manner, any of which credit arrangements may be secured by a pledge of funds derived from assessments against cotton grower members of the organization.
      1. Any funds borrowed and any funds derived from the sale of bonds shall be used exclusively for funding a boll weevil suppression or eradication program.
      2. Funds derived from assessments against cotton grower members of the organization shall be used to pay the operating expenses of the boll weevil suppression or eradication program and to repay any loans or obligations incurred by the boll weevil suppression or eradication program.
    1. Upon being certified as the certified cotton growers' organization under this subchapter, the certified cotton growers' organization and its board of directors are granted all the immunities and protections allowed under § 16-120-701 et seq., notwithstanding the requirements of § 16-120-702(a).
    2. The certified cotton growers' organization may indemnify its directors against liability incurred in connection with their duties as board members.
    1. In order for a cotton growers' organization to maintain certification by the State Plant Board, it shall provide that its board of directors serve four-year terms of office except that on July 1, 2004, the terms shall be staggered so that, to the extent possible, an equal number of members' terms shall expire each year.
    2. Members of the board of directors may succeed themselves.
      1. Within the parameters of subdivision (g)(3)(B) of this section, the cotton growers' organization shall ensure that the five (5) eradication zones as they existed on January 1, 2003, are represented on the board of directors in proportion to the number of acres of cotton planted in each zone using the prior three (3) years' average acreage to determine the proportional representation.
      2. Beginning July 1, 2004, the cotton growers' organization shall cause its board of directors to be composed of:
        1. At least one (1) member but no more than (2) members who reside within the Southeast Boll Weevil Eradication Zone as it existed on January 1, 2003;
        2. At least one (1) member but no more than (2) members who reside within the Southwest Boll Weevil Eradication Zone as it existed on January 1, 2003;
        3. At least one (1) member but no more than (2) members who reside within the Central Boll Weevil Eradication Zone as it existed on January 1, 2003;
        4. At least one (1) member but no more than (2) members who reside within the Northeast Ridge Boll Weevil Eradication Zone as it existed on January 1, 2003; and
        5. At least one (1) member but no more than (2) members who reside in the Northeast Boll Weevil Eradication Zone as it existed on January 1, 2003.
    3. As vacancies occur, they shall be filled in a manner that will, to the extent possible, ensure the proportional representation required in subdivision (g)(3)(A) of this section.

History. Acts 1991, No. 710, § 12; 1993, No. 854, § 3; 1995, No. 529, § 1; 1997, No. 330, §§ 5, 6; 2003, No. 1726, § 1.

U.S. Code. Section 501(a) of the Internal Revenue Code of 1986, referred to in this section, is codified as 26 U.S.C. § 501(a).

2-16-613. Certification of cotton growers' organization — Revocation.

    1. Upon determination by the State Plant Board that the organization meets the requirements of § 2-16-612, the board shall certify the organization as the official cotton growers' organization.
    2. Such certification shall be for the purposes of this subchapter only and shall not affect other organizations or associations of cotton growers established for other purposes.
  1. The board shall certify only one (1) such organization and may revoke the certification of the organization if at any time the organization shall fail to meet the requirements of this subchapter.
  2. The debts of this organization, should there be any, shall not become the liability of the board.

History. Acts 1991, No. 710, § 13.

2-16-614. Referendum — Assessments.

    1. At the request of the certified cotton growers' organization, the State Plant Board shall authorize a referendum among cotton growers in a designated region on the question of whether an assessment shall be levied upon cotton growers in that region to offset, in whole or in part, the cost of boll weevil suppression, preeradication, eradication, or maintenance programs authorized by this subchapter or any other law of this state.
    2. The program shall be designed on a regional basis to reflect the differences in boll weevil infestation and the relative costs of financing boll weevil suppression and eradication programs in the respective regions.
    1. The assessment levied under this subchapter shall be based upon the number of acres of cotton planted in the eradication area.
    2. The amount of the assessment, the period of time for which it shall be levied, how it shall be levied, when it shall be paid, and the geographical area to be covered by the assessment shall be determined by the board and established by rules under this section.
    3. The annual assessment shall not exceed fifty dollars ($50.00) per acre.
    1. All affected cotton growers shall be entitled to vote in any such referendum; provided, however, that the affected cotton growers produced a cotton crop for harvest, or had an interest therein, in the designated region conducting the referendum in the crop year immediately preceding the year in which the referendum is conducted.
    2. A cotton grower may vote through a power of attorney evidenced in writing, including, but not limited to, a power of attorney recognized by the United States Farm Service Agency or its successor. The board or its cooperators shall determine any questions of eligibility to vote.
    3. Each person who is eligible to vote in the referendum shall be mailed a ballot upon which to cast a vote for or against the boll weevil suppression and eradication program.
    4. Passage of the referendum shall require an affirmative vote of two-thirds (2/3) of those voting in the referendum.
    1. The assessments approved under this subchapter shall be collected by the certified cotton growers' organization or such other agency or entity designated by the board from the affected cotton growers.
    2. The assessments collected by the board or such other agency or entity designated by the board under this subchapter shall be promptly remitted to the certified cotton growers' organization under such terms and conditions as the board shall deem necessary to ensure that the assessments are used in a sound program of eradication or suppression of the boll weevil.
  1. The certified organization shall provide to the board an annual audit of its accounts performed by a certified public accountant.
  2. The assessments collected by the board under this subchapter shall not be state funds.
    1. In addition to the authority granted in this section for a referendum among cotton growers, the board may conduct a separate referendum among cotton growers in the southwest corner of the state, within boundaries to be defined by the board, on the question of whether an assessment shall be levied upon cotton growers in the defined area to provide funds to fund in whole or in part the cost of a boll weevil suppression or eradication program.
    2. Any such regional referendum shall be conducted in the same manner as any other referendum authorized in this section, and any assessments levied under such a referendum shall be subject to the same uses and limitations and shall be made, collected, and remitted in the same manner as assessments levied under any other referenda conducted under this subchapter.

History. Acts 1991, No. 710, § 14; 1993, No. 854, § 4; 1995, No. 529, § 2; 1997, No. 330, § 7.

A.C.R.C. Notes. The reference to Farm Service Agency in subsection (c) may be a reference to the Consolidated Farm Service Agency established at 7 U.S.C. § 6932.

Case Notes

In General.

Section 2-16-610(b)(2) specifically authorized the Arkansas State Plant Board to issue regulations requiring commercial cotton growers to participate in and share the costs of an eradication program, and there was no limiting language in § 2-16-610 or this section making the Board's authority dependent upon referendum approval; thus, the court rejected the growers' claim that a referendum under this section was required before any assessment for the costs of the eradication program could be levied under § 2-16-610. Rose v. Ark. State Plant Bd., 363 Ark. 281, 213 S.W.3d 607 (2005).

2-16-615. Conduct of referendum.

The arrangements for and management of any referendum held under this subchapter shall be under the direction of the certified organization. The organization shall bear all expenses incurred in conducting the referendum, to include furnishing the ballots and arranging for the necessary poll holders.

History. Acts 1991, No. 710, § 15.

2-16-616. Subsequent referenda.

  1. In the event any referendum conducted under this subchapter fails to receive the required number of affirmative votes, the certified organization may call other referenda, with the consent of the State Plant Board.
    1. After the passage of any referendum, the eligible voters shall be allowed by subsequent referenda to be held upon recommendation of the certified cotton growers' organization to vote on whether to eliminate or modify the program.
    2. Upon petition by one-third (1/3) of the cotton growers within a designated region established under § 2-16-614, the certified cotton growers' organization shall be required to conduct a subsequent referendum on whether to eliminate or modify the program, provided that the certified cotton growers' organization is required to hold no more than one (1) petitioned referendum for each designated region during any given calendar year.
    3. Passage of the question called in the subsequent referendum requires that a two-thirds (2/3) majority of those voting approve the subsequent referendum.
    4. All the requirements for an initial referendum must be met in subsequent referenda.
  2. If an approved eradication program is discontinued for any reason, or the certified cotton growers' organization is abolished or loses its certification for any reason, assessments approved, levied, or otherwise collectible under this subchapter on the date of the event remain valid as necessary to pay the financial obligations of the certified cotton growers' organization.

History. Acts 1991, No. 710, § 16; 1993, No. 854, § 5; 1997, No. 330, § 8.

2-16-617. Failure to pay assessments — Extensions — Exemption.

    1. A cotton grower who fails to pay when due and upon reasonable notice any assessment levied under this subchapter shall be subject to a per-acre penalty as established in the State Plant Board's rules in addition to the assessment.
    2. A cotton grower who fails to pay all assessments, including penalties, within thirty (30) days' notice of penalty shall destroy any cotton plants growing on his or her acreage which is subject to the assessment. Any such cotton plants which are not destroyed shall be deemed to be a public nuisance, and the public nuisance may be abated in the same manner as any public nuisance.
  1. The board may petition the circuit court of the judicial circuit in which the public nuisance is located to have the nuisance condemned and destroyed, with all costs of destroying to be levied against the grower. This injunctive relief shall be available to the board notwithstanding the existence of any other legal remedy, and the board shall not be required to file a bond.
    1. In addition to any other remedies for the collection of assessments, including penalties, the board may secure a lien upon cotton subject to the assessments.
      1. If the cotton was grown on a cost-share basis, the lien may be perfected on the landowner's share and the grower's share of the cotton.
      2. Any buyer of cotton shall take free of the lien if he or she has not received written notice of the lien from the board or if he or she has paid for the cotton by a check in which the board is named as joint payee.
    2. The amount of the lien on the cotton shall reflect the landowner's and grower's proportionate share of the assessment.
      1. No gins in the State of Arkansas shall gin any cotton for any cotton grower from Arkansas or from any other state unless and until that grower files with the respective gin a certificate of compliance issued by the board certifying that the grower has paid all fees, assessments, penalties, and costs imposed and required under this subchapter, unless a grower has been granted an extension by the board in compliance with subsection (e) of this section.
      2. It is the responsibility of each grower to procure a certificate of compliance or proof that an exemption for compliance has been granted from the board by September 1 of each successive crop year and to file same with a gin.
      1. Any gin that gins cotton for any cotton grower who has not filed a current valid certificate of compliance issued by the board shall be assessed a penalty to be established by board rules.
      2. Any cotton grower will be subject to having a lien placed on the following year's crop for any unpaid assessments or penalties incurred in the previous year.
    1. The board shall by rule establish a procedure in which a cotton grower can apply for exemption from payment of any assessment or penalty imposed in this section, on the basis that the payment of the assessment or the penalty will impose undue financial hardship on the grower, and shall prescribe the criteria to be used in determining undue financial hardship.
      1. Any cotton grower who wishes to request an exemption from payment of the assessment, or the penalty, or both, shall apply for the exemption on forms prescribed by the board.
      2. A separate application must be filed for each calendar year for which the cotton grower seeks an exemption, and each such application shall contain information on which the grower relies to justify an exemption on the basis of undue financial hardship.
      3. The application form shall include an oath or affirmation of the applicant as to the truth of all information contained in or accompanying the application.
      1. The board shall forward each completed exemption application form and any information accompanying the form to the cotton growers' organization certified under § 2-16-612.
      2. The certified cotton growers' organization shall determine whether each applicant qualifies for a hardship exemption based on the information contained in or accompanying the application form.
    2. If the certified organization determines that the payment of the assessment or the penalty, or both, would impose undue financial hardship on a cotton grower who has applied for an exemption, the organization may:
      1. Exempt the cotton grower from payment of the assessment or the penalty, or both; or
      2. Permit the cotton grower to pay the assessment or penalty, or both, on an installment payment plan and prescribe the payment schedule.
    3. Upon making a determination on any application for exemption, the certified organization shall notify the board of its determination, which shall be binding on the applicant.
    4. Upon receipt of notice of a determination by the organization, the board shall promptly notify the affected cotton grower of the determination.
    5. If an exemption is denied, the assessment and penalties for the year in which the application is made will be due at the time they would otherwise have been due if the application had not been filed or within thirty (30) days after the date the notice of the adverse determination is received by the cotton grower, whichever is later.

History. Acts 1991, No. 710, § 17; 1993, No. 854, § 6; 1995, No. 529, §§ 3, 4; 2003, No. 1726, § 2.

Subchapter 7 — Arkansas Fire Ant Advisory Board

Cross References. Red imported fire ant districts, § 14-286-101 et seq.

Effective Dates. Acts 1993, No. 268, § 13: Feb. 26, 1993. Emergency clause provided: “It is hereby found and determined by the General Assembly that fire ants are becoming a serious problem in this state; that it is urgent that appropriate action be taken to provide for expanded research concerning the fire ant; that this act is designed to establish a Fire Ant Advisory Board to promote such research and to assist in planning and executing the research. Therefore, an emergency is hereby declared to exist and this act being necessary for the preservation of the public peace, health and safety shall be in full force and effect from and after its passage and approval.”

Acts 1997, No. 250, § 258: Feb. 24, 1997. Emergency clause provided: “It is hereby found and determined by the General Assembly that Act 1211 of 1995 established the procedure for all state boards and commissions to follow regarding reimbursement of expenses and stipends for board members; that this act amends various sections of the Arkansas Code which are in conflict with the Act 1211 of 1995; and that until this cleanup act becomes effective conflicting laws will exist. Therefore an emergency is declared to exist and this act being immediately necessary for the preservation of the public peace, health and safety shall become effective on the date of its approval by the Governor. If the bill is neither approved nor vetoed by the Governer [sic], it shall become effective on the expiration of the period of time during which the Governor may veto the bill. If the bill is vetoed by the Governor and the veto is overridden, it shall become effective on the date the last house overrides the veto.”

Acts 2019, No. 910, § 6346(b): July 1, 2019. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that this act revises the duties of certain state entities; that this act establishes new departments of the state; that these revisions impact the expenses and operations of state government; and that the sections of this act other than the two uncodified sections of this act preceding the emergency clause titled ‘Funding and classification of cabinet-level department secretaries’ and ‘Transformation and Efficiencies Act transition team’ should become effective at the beginning of the fiscal year to allow for implementation of the new provisions at the beginning of the fiscal year. Therefore, an emergency is declared to exist, and Sections 1 through 6343 of this act being necessary for the preservation of the public peace, health, and safety shall become effective on July 1, 2019”.

2-16-701. Creation.

  1. The Arkansas Fire Ant Advisory Board is hereby created to accept all gifts, grants, and other moneys from any source for the purpose of financing new and ongoing fire ant research and educational programs and providing counsel in planning and executing such research and educational programs.
  2. These moneys will route through the University of Arkansas Agricultural Experiment Station, the University of Arkansas Cooperative Extension Service, or the University of Arkansas Agricultural Development Council at Fayetteville for use by the board and fire ant researchers in the School of Forest Resources at the University of Arkansas at Monticello or other researchers in cooperative efforts with researchers at the University of Arkansas at Monticello.

History. Acts 1993, No. 268, §§ 1, 2; 1995, No. 112, § 1.

2-16-702. Members.

  1. The Arkansas Fire Ant Advisory Board shall be composed of the Vice President for Agriculture of the University of Arkansas, the head of the Department of Entomology at the University of Arkansas at Fayetteville or his or her representative, the Secretary of the Department of Agriculture or his or her representative, and the following to be appointed from an ant-infested area by the Chair of the Arkansas Fire Ant Advisory Board:
    1. A representative of an Arkansas environmental interest group;
    2. A county extension agent or a member of the general public;
    3. A representative of the farm or ranch industry;
    4. A representative of the horticultural or nursery industry; and
    5. A representative of the Arkansas Pest Control Association.
    1. Members of the board appointed by the chair shall be appointed for four-year terms.
    2. Persons appointed to fill vacancies shall serve for the remainder of the unexpired term.
  2. Members of the board shall serve without compensation. Board members may receive expense reimbursement in accordance with § 25-16-901 et seq.

History. Acts 1993, No. 268, §§ 4-6; 1997, No. 250, § 4; 1999, No. 1119, § 1; 2019, No. 910, § 24.

Publisher's Notes. As originally enacted by Acts 1993, No. 268, § 5, subdivision (b)(1) read as follows:

“Members of the board shall serve staggered terms, so that the terms of two appointed board members expire on January 1 of each odd-numbered year, and their successors shall be appointed for four-year terms.”

Amendments. The 2019 amendment, in the introductory language of (a), substituted “Vice President for Agriculture of the University of Arkansas” for “Vice President for Agriculture of the University of Arkansas System”, “Secretary of the Department of Agriculture” for “Director of the State Plant Board”, and “Chair of the Arkansas Fire Ant Advisory Board” for “chair”.

2-16-703. Chair — Meetings.

  1. The Vice President for Agriculture of the University of Arkansas system shall serve as chair of the Arkansas Fire Ant Advisory Board.
  2. The board shall meet at the call of the chair and no less frequently than annually.
  3. The chair shall provide necessary meeting space and administrative services for the board.

History. Acts 1993, No. 268, §§ 3, 7; 1997, No. 577, § 1.

2-16-704. Rules.

The Arkansas Fire Ant Advisory Board may promulgate rules necessary for the implementation of this subchapter.

History. Acts 1993, No. 268, § 9.

2-16-705. Annual report.

No later than January 1 of each year, the Arkansas Fire Ant Advisory Board shall report to the directors of the University of Arkansas Agricultural Experiment Station and the University of Arkansas Cooperative Extension Service regarding all moneys received and expended by it during the preceding fiscal year.

History. Acts 1993, No. 268, § 8.

Subchapter 8 — Thistle Control and Eradication

2-16-801. Annual assessment.

  1. As a part of its assessment of activities and accomplishments, each conservation district in this state shall annually assess the thistle problem within the district and report to the Arkansas Natural Resources Commission no later than September 30 each year regarding the extent of the thistle problem within the district and methods proposed to be used to eradicate and control the thistles.
  2. The commission may provide financial assistance to the conservation districts from any funds available for that purpose.

History. Acts 1997, No. 1030, § 1.

2-16-802. Interagency cooperation.

A coordinated, concerted effort by the various agencies affected by the thistle problem is necessary to realize a proper remedy and therefore it is requested that the State Plant Board, Arkansas Forestry Commission, Arkansas Natural Resources Commission, University of Arkansas Cooperative Extension Service, Natural Resources Conservation Service of the United States Department of Agriculture, the several conservation districts, and all other interested agencies cooperate with each other and coordinate their efforts toward the eradication of thistles in this state.

History. Acts 1997, No. 1030, § 2.

Subchapter 9 — Pest Control Compact

2-16-901. Pest Control Compact.

The Pest Control Compact is hereby enacted into law and entered into with all other jurisdictions legally joining therein in the form substantially as follows:

Article IFindings

The party states find that:

  1. In the absence of the higher degree of cooperation among them possible under this Compact, the annual loss of approximately 137 billion dollars from the depredations of pests is virtually certain to continue, if not to increase.
  2. Because of the varying climatic, geographic and economic factors, each state may be affected differently by particular species of pests; but all states share the inability to protect themselves fully against those pests which present serious dangers to them.
  3. The migratory character of pest infestations makes it necessary for states both adjacent to and distant from one another, to complement each other's activities when faced with conditions of infestation and reinfestation.
  4. While every state is seriously affected by a substantial number of pests, and every state is susceptible of infestation by many species of pests not now causing damage to its crops and plant life and products, the fact that relatively few species of pests present equal danger to or are of interest to all states makes the establishment and operation of an Insurance Fund, from which individual states may obtain financial support for pest control programs of benefit to them in other states and to which they may contribute in accordance with their relative interest, the most equitable means of financing cooperative pest eradication and control programs.

Article IIDefinitions

As used in this Compact, unless the context clearly requires a different construction:

  1. “State” means a state, territory or possession of the United States, the District of Columbia, and the Commonwealth of Puerto Rico.
  2. “Requesting state” means a state which invokes the procedures of the Compact to secure the undertaking or intensification of measures to control or eradicate one or more pests within one or more other states.
  3. “Responding state” means a state requested to undertake or intensify the measures referred to in subdivision (b) of this Article.
  4. “Pest” means any invertebrate animal, pathogen, parasitic plant or similar or allied organism which can cause disease or damage in any crops, trees, shrubs, grasses, or other plants of substantial value.
  5. “Insurance Fund” means the Pest Control Insurance Fund established pursuant to this Compact.
  6. “Governing Board” means the administrators of this Compact representing all of the party states when such administrators are acting as a body in pursuance of authority vested in them by this Compact.
  7. “Executive committee” means the committee established pursuant to Article V (e) of this Compact.

Article IIIThe Insurance Fund

There is hereby established a Pest Control Insurance Fund for the purpose of financing other than normal pest control operations which states may be called upon to engage in pursuant to this Compact. The Insurance Fund shall contain moneys appropriated to it by the party states and any donations and grants accepted by it. All appropriations, except as conditioned by the rights and obligations of party states expressly set forth in this Compact, shall be unconditional and may not be restricted by the appropriating state to use in the control of any specified pest or pests. Donations and grants may be conditional or unconditional, provided that the Insurance Fund shall not accept any donation or grant whose terms are inconsistent with any provision of this Compact.

Article IVThe Insurance Fund, Internal Operations and Management

  1. The Insurance Fund shall be administered by a Governing Board and Executive Committee as hereinafter provided. The actions of the Governing Board and the Executive Committee pursuant to this Compact shall be deemed the actions of the Insurance Fund.
  2. The members of the Governing Board shall be entitled to one vote on such board. No action of the Governing Board shall be binding unless taken at a meeting at which a majority of the total number of votes on the Governing Board is cast in favor thereof. Action of the Governing Board shall be only at a meeting at which a majority of the members are present.
  3. The Insurance Fund shall have a seal which may be employed as an official symbol and which may be affixed to documents and otherwise used as the Governing Board may provide.
  4. The Governing Board shall elect annually, from among its members, a chairman, a vice chairman, a secretary and a treasurer. The chairman may not succeed himself. The Governing Board may appoint an executive director and fix his duties and his compensation, if any. Such executive director shall serve at the pleasure of the Governing Board. The Governing Board shall make provision for the bonding of such of the officers and employees of the Insurance Fund as may be appropriate.
  5. Irrespective of the civil service, personnel or other merit system laws of any of the party states, the executive director, or if there be no executive director, the chairman, in accordance with such procedures as the bylaws may provide, shall appoint, remove or discharge such personnel as may be necessary for the performance of the functions of the Insurance Fund and shall fix the duties and compensation of such personnel. The Governing Board in its bylaws shall provide for the personnel policies and programs of the Insurance Fund.
  6. The Insurance Fund may borrow, accept or contract for the services of personnel from any state, the United States, or any other governmental agency, or from any person, firm, association, or corporation.
  7. The Insurance Fund may accept for any of its purposes and functions under this Compact any and all donations, and grants of money, equipment, supplies, materials, and services, conditional or otherwise, from any state, the United States, or any other governmental agency, or from any person, firm, association, or corporation, and may receive, utilize and dispose of the same. Any donation, gift, or grant accepted by the Governing Board pursuant to this paragraph or services borrowed pursuant to paragraph (f) of this Article shall be reported in the annual report of the Insurance Fund. Such report shall include the nature, amount and conditions, if any, of the donation, gift, grant, or services borrowed and the identity of the donor or lender.
  8. The Governing Board shall adopt bylaws for the conduct of the business of the Insurance Fund and shall have the power to amend and to rescind these bylaws. The Insurance Fund shall publish its bylaws in convenient form and shall file a copy thereof and a copy of any amendment thereto with the appropriate agency or officer in each of the party states.
  9. The Insurance Fund annually shall make to the Governor and legislature of each party state a report covering its activities for the preceding year. The Insurance Fund may make such additional reports as it may deem desirable.
  10. In addition to the powers and duties specifically authorized and imposed, the Insurance Fund may do such other things as are necessary and incidental to the conduct of its affairs pursuant to this Compact.

Article VCompact and Insurance Fund Administration

  1. In each party state there shall be a Compact administrator, who shall be selected and serve in such manner as the laws of his state may provide, and who shall:
    1. Assist in the coordination of activities pursuant to the Compact in his state; and
    2. Represent his state on the Governing Board of the Insurance Fund.
  2. If the laws of the United States specifically so provide, or if administrative provision is made therefore within the federal government, the United States may be represented on the Governing Board of the Insurance Fund by not to exceed three representatives. Any such representative or representatives of the United States shall be appointed and serve in such manner as may be provided by or pursuant to federal law, but no such representative shall have a vote on the Governing Board or the Executive Committee thereof.
  3. The Governing Board shall meet at least once each year for the purpose of determining policies and procedures in the administration of the Insurance Fund and, consistent with the provisions of the Compact, supervising and giving direction to the expenditure of moneys from the Insurance Fund. Additional meetings of the Governing Board shall be held on call of the chairman, the Executive Committee, or a majority of the membership of the Governing Board.
  4. At such times as it may be meeting, the Governing Board shall pass upon applications for assistance from the Insurance Fund and authorize disbursements therefrom. When the Governing Board is not in session, the Executive Committee thereof shall act as agent of the Governing Board, with full authority to act for it in passing upon such applications.
  5. The Executive Committee shall be composed of the chairman of the Governing Board and four additional members of the Governing Board chosen by it so that there shall be one member representing each of four geographic groupings of party states. The Governing Board shall make such geographic groupings. If there is representation of the United States on the Governing Board, one such representative may meet with the Executive Committee. The chairman of the Governing Board shall be chairman of the Executive Committee. No action of the Executive Committee shall be binding unless taken at a meeting at which at least four members of such Committee are present and vote in favor thereof. Necessary expenses of each of the five members of the Executive Committee incurred in attending meetings of such Committee, when not held at the same time and place as a meeting of the Governing Board, shall be charges against the Insurance Fund.

Article VIAssistance and Reimbursement

  1. Each party state pledges to each other party state that it will employ its best efforts to eradicate, or control within the strictest practicable limits, any and all pests. It is recognized that performance of this responsibility involves:
    1. The maintenance of pest control and eradication activities of interstate significance by a party state at a level that would be reasonable for its own protection in the absence of this Compact.
    2. The meeting of emergency outbreaks or infestations of interstate significance to no less an extent than would have been done in the absence of this Compact.
  2. Whenever a party state is threatened by a pest not present within its borders but present within another party state, or whenever a party state is undertaking or engaged in activities for the control or eradication of a pest or pests, and finds that such activities are or would be impracticable or substantially more difficult of success by reason of failure of another party state to cope with infestation or threatened infestation, that state may request the Governing Board to authorize expenditures from the Insurance Fund for eradication or control measures to be taken by one or more of such other party states at a level sufficient to prevent, or to reduce to the greatest practicable extent, infestation or reinfestation of the requesting state. Upon such authorization the responding state or states shall take or increase such eradication or control measures as may be warranted. A responding state shall use moneys available from the Insurance Fund expeditiously and efficiently to assist in affording the protection requested.
  3. In order to apply for expenditures from the Insurance Fund, a requesting state shall submit the following in writing:
    1. A detailed statement of the circumstances which occasion the request for the invoking of the Compact.
    2. Evidence that the pest on account of whose eradication or control assistance is requested constitutes a danger to an agricultural or forest crop, product, tree, shrub, grass, or other plant having a substantial value to the requesting state.
    3. A statement of the extent of the present and projected program of the requesting state and its subdivisions, including full information as to the legal authority for the conduct of such program or programs and the expenditures being made or budgeted therefore, in connection with the eradication, control, or prevention of introduction of the pest concerned.
    4. Proof that the expenditures being made or budgeted as detailed in item 3 do not constitute a reduction of the effort for the control or eradication of the pest concerned or, if there is a reduction, the reasons why the level of program detailed in item 3 constitutes a normal level of pest control activity.
    5. A declaration as to whether, to the best of its knowledge and belief, the conditions which in its view occasion the invoking of the Compact in the particular instance can be abated by a program undertaken with the aid of moneys from the Insurance Fund in one year or less, or whether the request is for an installment in a program which is likely to continue for a longer period of time.
    6. Such other information as the Governing Board may require consistent with the provisions of this Compact.
  4. The Governing Board or Executive Committee shall give due notice of any meeting at which an application for assistance from the Insurance Fund is to be considered. Such notice shall be given to the Compact administrator of each party state and to such other officers and agencies as may be designated by the laws of the party states. The requesting state and any other party state shall be entitled to be represented and present evidence and argument at such meeting.
  5. Upon the submission as required by paragraph (c) of this Article and such other information as it may have or acquire, and upon determining that an expenditure of funds is within the purposes of this Compact and justified thereby, the Governing Board or Executive Committee shall authorize support of the program. The Governing Board or Executive Committee may meet at any time or place for the purpose of receiving and considering an application. Any and all determinations of the Governing Board or Executive Committee, with respect to an application, together with the reasons therefore shall be recorded and subscribed in such manner as to show and preserve the votes of the individual members thereof.
  6. A requesting state which is dissatisfied with a determination of the Executive Committee shall upon notice in writing given within twenty days of the determination with which it is dissatisfied, be entitled to receive a review thereof at the next meeting of the Governing Board. Determinations of the Executive Committee shall be reviewable only by the Governing Board at one of its regular meetings, or at a special meeting held in such manner as the Governing Board may authorize.
  7. Responding states required to undertake or increase measures pursuant to this Compact may receive moneys from the Insurance Fund, either at the time or times when such state incurs expenditures on account of such measures, or as reimbursement for expenses incurred and chargeable to the Insurance Fund. The Governing Board shall adopt and, from time to time, may amend or revise procedures for submission of claims upon it and for payment thereof.
  8. Before authorizing the expenditure of moneys from the Insurance Fund pursuant to an application of a requesting state, the Insurance Fund shall ascertain the extent and nature of any timely assistance or participation which may be available from the federal government and shall request the appropriate agency or agencies of the federal government for such assistance and participation.
  9. The Insurance Fund may negotiate and execute a memorandum of understanding or other appropriate instrument defining the extent and degree of assistance or participation between and among the Insurance Fund, cooperating federal agencies, states, and any other entities concerned.

Article VIIAdvisory and Technical Committees

The Governing Board may establish advisory and technical committees composed of state, local, and federal officials, and private persons to advise it with respect to any one or more of its functions. Any such advisory or technical committee, or any member or members thereof may meet with and participate in its deliberations upon request of the Governing Board or Executive Committee. An advisory or technical committee may furnish information and recommendations with respect to any application for assistance from the Insurance Fund being considered by such Board or Committee and the Board or Committee may receive and consider the same: provided that any participant in a meeting of the Governing Board or Executive Committee held pursuant to Article VI (d) of the Compact shall be entitled to know the substance of any such information and recommendations, at the time of the meeting if made prior thereto or as a part thereof or, if made thereafter, no later than the time at which the Governing Board or Executive Committee makes its disposition of the application.

Article VIIIRelations with Nonparty Jurisdictions

  1. A party state may make application for assistance from the Insurance Fund in respect of a pest in a nonparty state. Such application shall be considered and disposed of by the Governing Board or Executive Committee in the same manner as an application with respect to a pest within a party state, except as provided in this Article.
  2. At or in connection with any meeting of the Governing Board or Executive Committee held pursuant to Article VI (d) of this Compact a nonparty state shall be entitled to appear, participate, and receive information only to such extent as the Governing Board or Executive Committee may provide. A nonparty state shall not be entitled to review of any determination made by the Executive Committee.
  3. The Governing Board or Executive Committee shall authorize expenditures from the Insurance Fund to be made in a nonparty state only after determining that the conditions in such state and the value of such expenditures to the party states as a whole justify them. The Governing Board or Executive Committee may set any conditions which it deems appropriate with respect to the expenditure of moneys from the Insurance Fund in a nonparty state and may enter into such agreement or agreements with nonparty states and other jurisdictions or entities as it may deem necessary or appropriate to protect the interests of the Insurance Fund with respect to expenditures and activities outside of party states.

Article IXFinance

  1. The Insurance Fund shall submit to the executive head or designated officer or officers of each party state a budget for the Insurance Fund for such period as may be required by the laws of that party state for a presentation to the legislature thereof.
  2. Each of the budgets shall contain specific recommendations of the amount or amounts to be appropriated by each of the party states. The request for appropriations shall be apportioned among the party states as follows: one-tenth of the total budget in equal shares and the remainder in proportion to the value of agricultural and forest crops and products, excluding animals and animal products, produced in each party state. In determining the value of such crops and products the Insurance Fund may employ such source or sources of information as in its judgment present the most equitable and accurate comparisons among the party states. Each of the budgets and requests for appropriations shall indicate the source or sources used in obtaining information concerning value of products.
  3. The financial assets of the Insurance Fund shall be maintained in two accounts to be designated respectively as the “Operating Account” and the “Claims Account.” The Operating Account shall consist only of those assets necessary for the administration of the Insurance Fund during the next ensuing two-year period. The Claims Account shall contain all moneys not included in the Operating Account and shall not exceed the amount reasonably estimated to be sufficient to pay all legitimate claims on the Insurance Fund for a period of three years. At any time when the Claims Account has reached its maximum limit or would reach its maximum limit by the addition of moneys requested for appropriation by the party states, the Governing Board shall reduce its budget requests on a pro rata basis in such manner as to keep the Claims Account within such maximum limit. Any moneys in the Claims Account by virtue of conditional donations, grants, or gifts shall be included in calculations made pursuant to this paragraph only to the extent that such moneys are available to meet demands arising out of the claims.
  4. The Insurance Fund shall not pledge the credit of any party state. The Insurance Fund may meet any of its obligations in whole or in part with moneys available to it under Article IV (g) of this Compact, provided that the Governing Board take specific action setting aside such moneys prior to incurring any obligation to be met in whole or in part in such manner. Except where the Insurance Fund makes use of moneys available to it under Article IV (g) hereof, the Insurance Fund shall not incur any obligation prior to the allotment of moneys by the party states adequate to meet the same.
  5. The Insurance Fund shall keep accurate accounts of all receipts and disbursements. The receipts and disbursements of the Insurance Fund shall be subject to the audit and accounting procedures established under its bylaws. However, all receipts and disbursements of funds handled by the Insurance Fund shall be audited yearly by a certified or licensed public accountant and report of the audit shall be included in and become part of the annual report of the Insurance Fund.
  6. The accounts of the Insurance Fund shall be open at any reasonable time for inspection by duly authorized officers of the party states and by any persons authorized by the Insurance Fund.

Article XEntry Into Force and Withdrawal

  1. This Compact shall enter into force when enacted into law by any five or more states. Thereafter, this Compact shall become effective as to any other state upon its enactment thereof.
  2. Any party state may withdraw from this Compact by enacting a statute repealing the same, but no such withdrawal shall take effect until two years after the executive head of the withdrawing state has given notice in writing of the withdrawal to the executive heads of all other party states. No withdrawal shall affect any liability already incurred by or chargeable to a party state prior to the time of such withdrawal.

Article XIConstruction and Severability

This Compact shall be liberally construed so as to effectuate the purposes thereof. The provisions of this Compact shall be severable and if any phrase, clause, sentence, or provision of this Compact is declared to be contrary to the constitution of any state or of the United States or the applicability thereof to any government, agency, person, or circumstance is held invalid, the validity of the remainder of this Compact and the applicability thereof to any government, agency, person, or circumstance shall not be affected thereby. If this Compact shall be held contrary to the constitution of any state participating herein the Compact shall remain in full force and effect as to the remaining party states and in full force and effect as to the state affected as to all severable matters.

History. Acts 2009, No. 401, § 1; 2013, No. 1122, § 2.

Amendments. The 2013 amendment inserted “The party states find that” before (a).

2-16-902. Cooperation with insurance fund.

Consistent with law and within available appropriations, the departments, agencies and officers of this state may cooperate with the Insurance Fund established by the Pest Control Compact.

History. Acts 2009, No. 401, § 1.

2-16-903. Filing of bylaws and amendments.

Under Article IV (h) of the Compact, copies of bylaws and amendments thereto shall be filed with the Director of the State Plant Board.

History. Acts 2009, No. 401, § 1.

2-16-904. Compact administrator.

The Compact administrator for this state shall be the Director of the State Plant Board.

History. Acts 2009, No. 401, § 1.

2-16-905. Request or application for assistance.

Within the meaning of Article VI (b) or VIII (a), a request or application for assistance from the Insurance Fund may be made by the Governor or the Director of the State Plant Board, whenever in his or her judgment the conditions qualifying this state for such assistance exist and it would be in the best interest of this state to make such request.

History. Acts 2009, No. 401, § 1.

2-16-906. Notices.

In addition to the state Compact administrator, notices under Article VI (d) should be sent to the Assistant Director of the State Plant Board and the person designated as the State Plant Regulatory Official.

History. Acts 2009, No. 401, § 1.

2-16-907. Credit for expenditures.

The department, agency, or officer expending or becoming liable for an expenditure on account of a control or eradication program undertaken or intensified under the Compact shall have credited to his of her account, in the state treasury the amount or amounts of any payments made to this state to defray the cost of such program, or any part thereof, or as reimbursement thereof.

History. Acts 2009, No. 401, § 1.

2-16-908. Definition.

As used in this Compact, with reference to this state, the term “executive head” shall mean the Governor.

History. Acts 2009, No. 401, § 1.

2-16-909. Effective date.

This law becomes effective September 1, 2009.

History. Acts 2009, No. 401, § 1.

Chapter 17 Warehousing of Grain

Research References

Am. Jur. 78 Am. Jur. 2d, Warehouses, § 1 et seq.

C.J.S. 93 C.J.S., Warehousemen, § 1 et seq.

U. Ark. Little Rock L.J.

Note, Storers of Grain — Arkansas Stands Alone in Protecting the Rights of Depositors of Grain in Public Warehouses, etc., 9 U. Ark. Little Rock L.J. 699.

Subchapter 1 — General Provisions

[Reserved.]

Subchapter 2 — Public Warehouses — Generally

Publisher's Notes. Acts 1979, No. 83, § 42, provided that anticipatory action to implement the provisions of this subchapter could be taken prior to the effective date of this subchapter.

Effective Dates. Acts 1979, No. 83, § 43: July 1, 1979. Emergency clause provided: “It is hereby found and determined by the General Assembly that there is an urgent need for regulation and licensing of grain warehouses in the State of Arkansas. Therefore, an emergency is hereby declared to exist and this act being necessary for the immediate preservation of the public peace, health, welfare and safety shall be in full force and effect from and after July 1, 1979.”

Acts 1983, No. 264, § 3 [4]: Feb. 25, 1983. Emergency clause provided: “It is hereby found and determined by the General Assembly that grain producers routinely deliver their grain to warehouses and do not obtain warehouse receipts but merely unpriced scale tickets; that unpriced scale tickets should be nonnegotiable warehouse receipts and thereby provide the producer a secured position; and that this act is immediately necessary to so provide. Therefore, an emergency is hereby declared to exist, and this act being immediately necessary for the preservation of the public peace, health and safety shall be in full force and effect from and after its passage and approval.”

Acts 1993, No. 783, § 13: Mar. 29, 1993. Emergency clause provided: “It is hereby found and determined by the Seventy-Ninth General Assembly meeting in Regular Session that the provisions of this act are of critical importance to the state's ability to continue the duties, responsibilities, and functions of the State Plant Board. Therefore, an emergency is hereby declared to exist and this act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after its passage and approval.”

Research References

Ark. L. Rev.

Note, Act 401 of the Public Grain Warehouse Law: An Exception to the U.C.C. Concept of Voidable Title, 37 Ark. L. Rev. 293.

Case Notes

Federal Agencies.

Although the Commodity Credit Corporation, an agency of the United States Department of Agriculture, is not a grower or producer protected under § 2-17-301 et seq., it is protected by § 2-17-201 et seq. which does not conflict with and was not repealed by § 2-17-301 et seq.Reynolds v. Commodity Credit Corp., 300 Ark. 441, 780 S.W.2d 15 (1989).

2-17-201. Title.

This subchapter shall be known as the “Arkansas Public Grain Warehouse Law”.

History. Acts 1979, No. 83, § 1; A.S.A. 1947, § 77-1301.

Case Notes

Cited: Reynolds v. Commodity Credit Corp., 300 Ark. 441, 780 S.W.2d 15 (1989).

2-17-202. Definitions.

As used in this subchapter, unless the context otherwise requires:

  1. “Commissioner” means the Public Grain Warehouse Commissioner, who shall be the Director of the State Plant Board or his or her designated representative;
  2. “Grain” means all grains for which standards have been established under the United States Grain Standards Act, as amended, and shall include rice, as defined by the standards of the United States Department of Agriculture;
  3. “Person” means individuals, corporations, partnerships, and all associations of two (2) or more persons having a joint or common interest;
  4. “Public grain warehouse” means any building, structure, or other protected enclosure in this state used for the purpose of storing grain for a consideration;
  5. “Public grain warehouseman” means any person who operates a public grain warehouse as defined in this section;
  6. “Stored grain” means any grain received in any public grain warehouse, located in this state, if it is not purchased and beneficially owned by the public grain warehouseman; and
    1. “Warehouse receipt” means a licensed warehouse receipt issued under this subchapter and an unpriced scale ticket.
    2. Including unpriced scale tickets within the definition of “warehouse receipt” does not make the unpriced scale tickets negotiable.

History. Acts 1979, No. 83, § 2; 1983, No. 264, § 1; A.S.A. 1947, § 77-1302.

U.S. Code. The United States Grain Standards Act referred to in this section is codified as 7 U.S.C. § 71 et seq.

Case Notes

Cited: Tucker v. Durham, 285 Ark. 264, 686 S.W.2d 402 (1985); Cooper, Inc. v. Farm Bureau Mut. Ins. Co., 289 Ark. 218, 711 S.W.2d 155 (1986); Reynolds v. Commodity Credit Corp., 300 Ark. 441, 780 S.W.2d 15 (1989).

2-17-203. Applicability.

  1. The provisions of this subchapter shall apply to all public grain warehouses and to the operations of public grain warehouses whether or not any of the grain therein is owned by the warehouseman, unless the public grain warehouse is licensed under the provisions of the United States Warehouse Act, as amended.
  2. The provisions and definitions of the Uniform Commercial Code, § 4-1-101 et seq., relating to warehouse receipts, to the extent not inconsistent with this subchapter, shall govern warehouse receipts issued by public grain warehousemen, and the other provisions of the Uniform Commercial Code, § 4-1-101 et seq. shall also be applicable to the provisions of this subchapter to the extent not inconsistent with this subchapter.

History. Acts 1979, No. 83, § 3; A.S.A. 1947, § 77-1303.

U.S. Code. The United States Warehouse Act referred to in this section is codified as 7 U.S.C. § 241 et seq.

Case Notes

Cited: Tucker v. Durham, 285 Ark. 264, 686 S.W.2d 402 (1985); Reynolds v. Commodity Credit Corp., 300 Ark. 441, 780 S.W.2d 15 (1989).

2-17-204. Penalties.

  1. Any person who issues a warehouse receipt for grain without holding a valid public grain warehouse license or who commits any willful violation of any provision of this subchapter shall be guilty of a Class D felony.
  2. Any unintentional or negligent violation of this subchapter shall be a Class A misdemeanor.

History. Acts 1979, No. 83, § 37; A.S.A. 1947, § 77-1337.

Cross References. Imposition of fines, § 5-4-201.

Sentence of imprisonment, § 5-4-401.

2-17-205. Duty to enforce.

The State Plant Board shall carry out and enforce the provisions of this subchapter and is empowered to:

  1. Promulgate rules;
  2. Carry out necessary inspections;
  3. Appoint and fix the duties of personnel; and
  4. Provide such equipment as may be necessary to enforce the provisions hereof.

History. Acts 1979, No. 83, § 4; A.S.A. 1947, § 77-1304.

Case Notes

Cited: Banque Indosuez v. King, 46 Ark. App. 270, 878 S.W.2d 432 (1994).

2-17-206. State license.

  1. No person shall operate a public grain warehouse or issue a warehouse receipt without first having obtained a license under this subchapter, unless the public grain warehouse is licensed under the provisions of the United States Warehouse Act, as amended.
  2. All public grain warehouses licensed under the United States Warehouse Act, as amended, shall file with the State Plant Board copies of their current licenses and copies of all subsequent licenses or renewals so as to always have copies of current licenses on file with the board.

History. Acts 1979, No. 83, § 5; A.S.A. 1947, § 77-1305.

U.S. Code. The United States Warehouse Act referred to in this section is codified as 7 U.S.C. § 241 et seq.

2-17-207. License applications.

    1. Applications for licenses under this subchapter are to be made on forms prescribed by the Public Grain Warehouse Commissioner for each warehouse.
    2. Every application is to be accompanied by an application fee of one hundred fifty dollars ($150) and a certified financial statement in a form prescribed by the commissioner and any further information the commissioner may by rule require.
    1. If a warehouseman operates one (1) or more warehouses in the same city or town in conjunction with each other, if only one (1) set of books is kept for all the warehouses and scale tickets, and if warehouse receipts and checks of but one (1) series are issued for grain received or stored therein, then only one (1) license and bond shall be required for the operation of all the warehouses. In these cases, the license fee prescribed in this section shall be computed on the basis of the aggregate capacity of all warehouses operated by the licensee.
    2. The use for the storage of grain by a licensed warehouseman of a facility which is in the same city or town as licensed facilities and is neither licensed nor exempted, or for other violation of the provisions of this section, shall be cause for suspension or revocation of any license issued to the warehouseman for the storage of grain.
  1. Licenses issued under this subchapter are not transferable. Any person acquiring a new or existing public grain warehouse must apply for a license to operate the warehouse, subject to other provisions of this subchapter.

History. Acts 1979, No. 83, § 6; A.S.A. 1947, § 77-1306.

2-17-208. Filing schedule of charges.

    1. Before the issuance of a license under this subchapter, the public grain warehouseman shall file a copy of his or her schedule of charges for storage and other services with the Public Grain Warehouse Commissioner.
    2. If the public grain warehouseman desires to make any changes in the schedule of charges during the license period, he or she shall file with the commissioner a statement in writing showing the change at least thirty (30) days before its effective date.
  1. Each public grain warehouseman shall keep conspicuously posted the schedule of charges for storage and other services as so filed and shall strictly adhere to these charges.

History. Acts 1979, No. 83, § 8; A.S.A. 1947, § 77-1308.

2-17-209. Bond requirements.

        1. Before any license is issued to any warehouseman, the warehouseman shall file with the Public Grain Warehouse Commissioner a surety bond executed by the public grain warehouseman as principal and by a corporate surety licensed to do business in this state as surety.
        2. The bond shall run to the State of Arkansas and be for the benefit of all depositors or storers of grain, their legal representatives, attorneys, or assigns.
        1. No bond shall be accepted for the purposes of this subchapter until it has been approved by the commissioner.
        2. The bond shall be conditioned upon the warehouseman delivering all stored grain or payment of the value thereof upon the surrender of the warehouse receipt.
        3. The commissioner may require the increases in the amount of the bond, from time to time, as he or she may deem necessary for the protection of the storage receipt holders.
      1. The aggregate liability of the surety to all depositors or storers of grain shall not exceed the sum of the bond.
      2. The bond may be cancelled at any time by the surety by giving written notice to the commissioner of its intention to cancel the bond. All liability thereunder shall terminate thirty (30) days after the receipt of the notice by the commissioner, except that the notice shall not affect any claims arising under the bond, whether presented or not, before the effective date of the cancellation notice.
  1. In lieu of the bond required in subsection (a) of this section, an applicant for a license may be a self-insurer by posting with the commissioner cash or any combination of securities, the market value of which is readily ascertainable and, if negotiable, by delivery or assignment, of the kinds described in § 23-63-806, United States Government obligations, § 23-63-809, municipal or county utilities, § 23-63-813, international banks, and § 23-63-814, corporate bonds and debentures.

History. Acts 1979, No. 83, § 15; A.S.A. 1947, § 77-1315.

Case Notes

Protected Depositors.

The Commodity Credit Corporation, an agency of the federal government, is a protected depositor of grain under the Arkansas Public Grain Warehouse Law, and is entitled to share in the pro-rata disbursement of a warehouseman's bond. Reynolds v. Commodity Credit Corp., 300 Ark. 441, 780 S.W.2d 15 (1989).

Sellers Not Protected.

A bond issued to a grain warehouseman covers only those who hold warehouse receipts for grain stored; it does not cover a farmer who sells his or her grain to warehouseman but does not receive the promised payment. Farm Bureau Mut. Ins. Co. v. Wright, 285 Ark. 228, 686 S.W.2d 778 (1985).

Warehouse Receipts.

A bond issued by a surety to a public grain warehouseman was intended only for the protection of holders of “warehouse receipts”; therefore, since the farmers admittedly held only unpriced scale tickets and not warehouse receipts, there could be no recovery under the bond and, hence, no cause of action against the surety. Cooper, Inc. v. Farm Bureau Mut. Ins. Co., 289 Ark. 218, 711 S.W.2d 155 (1986) (decision prior to 1983 amendment of § 2-17-202, which included unpriced scale ticket in definition of warehouse receipt).

2-17-210. Amount of bond.

    1. The amount of bond to be furnished for each public grain warehouse shall be fixed at a rate of:
      1. Twenty cents (20¢) per bushel for the first one million (1,000,000) bushels of licensed capacity;
      2. Fifteen cents (15¢) per bushel for the next one million (1,000,000) bushels of licensed capacity; and
      3. Ten cents (10¢) per bushel for all licensed capacity over two million (2,000,000) bushels.
    2. In no case shall the amount of the bond be less than twenty thousand dollars ($20,000), except as prescribed in subsections (c) and (d) of this section.
    3. The licensed capacity shall be equal to the maximum number of bushels of grain that the public grain warehouse can accommodate for storage.
      1. A public grain warehouseman who is licensed or is applying for licenses to operate two (2) or more public grain warehouses may furnish a single bond. This bond shall meet the requirements of this subchapter to cover all public grain warehouses within the state.
      2. In these cases, all public grain warehouses to be covered by the bond shall be deemed to be one (1) warehouse for purposes of determining the amount of bond required under subsection (a) of this section.
    1. The aggregate licensed capacity of all the warehouses shall be used in determining the amount of the bond.
    1. Any deficiency in the net assets required by § 2-17-217 shall be supplied by an increase in the amount of the warehouseman's bond.
    2. In any other case in which the Public Grain Warehouse Commissioner finds that conditions exist which warrant requiring additional bond, there shall be added to the amount of the bond such further amount as determined to be reasonable by the commissioner.
    1. The commissioner may make exceptions to the bonding requirements of this section for good cause shown upon a finding that the requirements would substantially impair the warehouseman's ability to continue operations as a public grain warehouse and that the exception will not materially affect the protection of storage receipt holders under this subchapter.
    2. The exceptions must be reviewed at least annually.

History. Acts 1979, No. 83, § 16; A.S.A. 1947, § 77-1316.

Case Notes

Sellers Not Protected.

A bond issued to a grain warehouseman covers only those who hold warehouse receipts for grain stored; it does not cover a farmer who sells his or her grain to warehouseman but does not receive the promised payment. Farm Bureau Mut. Ins. Co. v. Wright, 285 Ark. 228, 686 S.W.2d 778 (1985).

2-17-211. Issuance or denial of license.

  1. Upon satisfaction of the requirements of this subchapter and any applicable rules by an applicant, the Public Grain Warehouse Commissioner shall issue a license to operate a public grain warehouse.
    1. If after proper application the commissioner denies any person a license to operate a public grain warehouse, the commissioner shall transmit immediately to the applicant, by certified mail, an order so providing, which shall state the reasons for the denial.
      1. In the event the applicant is dissatisfied with the decision of the commissioner, the applicant may request a hearing with the commissioner to appear and defend its compliance with all appropriate rules or give evidence that all deficiencies have been corrected.
        1. A hearing shall be held within ninety (90) days of the request.
        2. If after the hearing the commissioner denies the applicant a license, the commissioner shall transmit immediately to the applicant by certified mail an order so providing which shall state the reasons for the denial.
      2. In the event the applicant is dissatisfied with the decision of the commissioner after the hearing, the applicant may institute proceedings for judicial review in the circuit court of the county where the public grain warehouse is located or in the Pulaski County Circuit Court within thirty (30) days after service upon the applicant of the commissioner's final order, under § 25-15-212.

History. Acts 1979, No. 83, § 10; A.S.A. 1947, § 77-1310.

2-17-212. Posting of license.

Immediately upon receipt of his or her license or of any modification or extension thereof, the public grain warehouseman shall post it and thereafter keep it posted, until suspended or terminated, in a conspicuous place in the office of the public grain warehouse to which the license applies where receipts issued by the public grain warehouseman are delivered to depositors.

History. Acts 1979, No. 83, § 11; A.S.A. 1947, § 77-1311.

2-17-213. Annual license fee.

Subsequent to the issuance of an initial license under this subchapter, every applicant shall pay an annual license fee based upon the capacity of the warehouse. The fee shall be determined by the Public Grain Warehouse Commissioner but shall be no less than two hundred fifty dollars ($250) nor more than eight hundred dollars ($800).

History. Acts 1979, No. 83, § 7; A.S.A. 1947, § 77-1307; Acts 1993, No. 783, § 3.

2-17-214. Renewal of license.

  1. If a public grain warehouseman desires to renew his or her license for an additional year, application for the renewal shall be made on a form prescribed by the Public Grain Warehouse Commissioner.
  2. At least sixty (60) days before the expiration of each license, the commissioner shall notify each public grain warehouseman of the date of the expiration and furnish the public grain warehouseman with the renewal form.

History. Acts 1979, No. 83, § 12; A.S.A. 1947, § 77-1312.

2-17-215. Suspension, cancellation, or revocation of licenses.

  1. If a public grain warehouseman is convicted of any crime involving fraud or deceit or if the Public Grain Warehouse Commissioner determines that any public grain warehouseman has violated any of the provisions of this subchapter or any of the rules adopted by the commissioner under this subchapter, the commissioner may suspend, cancel, or revoke the license of the public grain warehouseman.
    1. All proceedings for the suspension, cancellation, or revocation of licenses shall be before the commissioner. The proceedings shall be in accordance with rules which shall be adopted by the commissioner.
      1. No suspension, cancellation, or revocation of any license is lawful unless, before the institution of the proceedings, the commissioner has given notice by mail to the licensee of facts or conduct warranting the intended action and the licensee has been given an opportunity to show compliance with all lawful requirements for the retention of the license.
      2. If the commissioner finds that public health, safety, or welfare imperatively requires emergency action and incorporates a finding to that effect in its order, summary suspension of a license may be ordered pending proceedings for revocation or other action, which proceedings shall be promptly instituted and determined.
        1. Whenever the commissioner shall suspend, cancel, or revoke any license, he or she shall prepare an order so providing which shall state the reason or reasons for the suspension, cancellation, or revocation.
        2. The order shall be sent by certified mail by the commissioner to the licensee at the address of the public grain warehouse licensed.
        3. Within thirty (30) days after service upon the licensee of the order, the licensee, if dissatisfied with the order of the commissioner, may institute proceedings for judicial review in the circuit court of the county where the public grain warehouse is located or in the Pulaski County Circuit Court.
  2. In case a license issued to a public grain warehouseman expires or is suspended, revoked, or cancelled by the commissioner or his or her designated representative, the license shall be immediately returned to the commissioner, and the public grain warehouseman shall forthwith comply with the provisions of § 2-17-237.

History. Acts 1979, No. 83, § 13; A.S.A. 1947, § 77-1313.

2-17-216. Replacement of license.

Upon satisfactory proof of the loss or destruction of a license issued to a public grain warehouseman, a duplicate or a new license may be issued under the same number.

History. Acts 1979, No. 83, § 14; A.S.A. 1947, § 77-1314.

2-17-217. Net assets required.

    1. Above all exemptions and liabilities, each public grain warehouseman shall have and maintain total net assets available for the payment of any indebtedness arising from the conduct of the public grain warehouse in an amount equal to at least ten cents (10¢) multiplied by the maximum number of bushels of grain for which the public grain warehouse is licensed.
      1. No person may be licensed as a public grain warehouseman unless he or she has available net assets of at least ten thousand dollars ($10,000).
      2. Any deficiency in net assets required above the minimum of ten thousand dollars ($10,000) may, at the discretion of the Public Grain Warehouse Commissioner, be supplied by a commensurate increase in the amount of the public grain warehouseman's bond.
        1. In determining total available net assets, credit may be given for insurable assets such as buildings, machinery, equipment, and merchandise inventory only to the extent of the current market value of the assets and only to the extent that the assets are protected by insurance against loss or damage.
        2. The insurance shall be in the form of lawful policies issued by one (1) or more insurance companies authorized to do business and subject to service of process in suits brought in this state, and which provide that no cancellation shall be effective unless thirty (30) days' advance notice of the cancellation is given to the commissioner.
  1. If a public grain warehouseman is licensed or is applying for license to operate two (2) or more public grain warehouses, the maximum total number of bushels which all the facilities will accommodate when stored in the manner customary to the warehouses, as determined by the commissioner, shall be considered in determining whether the public grain warehouseman meets the available net assets requirement of subsection (a) of this section.
  2. For the purposes of this section only, capital stock as such shall not be considered a liability.

History. Acts 1979, No. 83, § 9; A.S.A. 1947, § 77-1309.

2-17-218. Insurance required.

      1. At all times, every public grain warehouseman shall keep the grain stored in the public grain warehouse insured by an insurance company authorized to do business in this state.
      2. The grain is to be insured for its full market value against loss by fire, inherent explosion, lightning, and windstorm, and failure to do so shall make the public grain warehouseman liable for the grain.
    1. All policies shall provide that no cancellation shall be effective unless thirty (30) days' prior notice is given the Public Grain Warehouse Commissioner.
  1. If fire, inherent explosion, lightning, or windstorm shall destroy or damage all or part of the grain stored in any public grain warehouse, the public grain warehouseman shall, upon demand by the holder of any warehouse receipt for the grain and upon being presented with the warehouse receipt, make settlement for the fair market value at the time of the loss after deducting the warehouse charges.

History. Acts 1979, No. 83, § 20; A.S.A. 1947, § 77-1320.

2-17-219. Receipt of tendered grain.

    1. Every public grain warehouseman shall receive for storage or shipment, so far as the available capacity for storage of the public grain warehouse shall permit, all grain tendered to him or her in the usual course of business.
    2. However, a public grain warehouse owned and operated as a cooperative may decline to accept grain tendered by a nonmember if the cooperative reasonably believes that its available capacity will be required to serve the members of the cooperative.
    1. The depositor and the public grain warehouseman may agree upon a sample taken from the lot of grain to be offered for storage as being a true and representative sample.
    2. The depositor and the public grain warehouseman may agree upon the grade of the grain offered for storage, and a warehouse receipt may be issued on the agreed grade.

History. Acts 1979, No. 83, § 17; A.S.A. 1947, § 77-1317.

2-17-220. Receipts and records.

    1. Receipts must be issued for all grain stored in a warehouse in accordance with rules adopted under this subchapter.
    2. Receipts need not be issued against nonstorage grain, but each warehouseman shall keep accurate records of the weights, kinds, and grades, if graded, of all lots of nonstorage grain received into and delivered from his or her warehouse.
  1. Whenever the purpose for which any lot of nonstorage grain was received into a warehouse is changed so that its approximate delivery period from the warehouse becomes indeterminate, receipts shall be issued to cover the grain.
  2. Records required under this section with respect to nonstorage grain shall be retained, as a part of the records of the warehouse, for a period of one (1) year after December 31 of the year in which the lot of nonstorage grain is delivered from the warehouse.

History. Acts 1979, No. 83, § 25; 1983, No. 264, § 2; A.S.A. 1947, § 77-1325.

2-17-221. Contents of receipts.

  1. Every receipt issued for grain stored in a public grain warehouse shall conform to the requirements of § 4-7-202 and in addition shall embody within its written or printed terms:
    1. A statement that the holder of the receipt or the depositor of the grain shall demand the delivery of the grain on or before a date not later than one (1) year from the date specified by the public grain warehouseman;
    2. The net weight, number of bushels, and the percentage of dockage;
    3. The words “NOT NEGOTIABLE”, or “NEGOTIABLE”, according to the nature of the receipt, clearly and conspicuously printed or stamped thereon; and
    4. That the holder of the receipt or the depositor of the grain shall demand the delivery of the grain not later than the expiration of one (1) year from the date of the receipt.
    1. Every receipt, whether negotiable or nonnegotiable, issued for grain stored in a warehouse shall specify a period, not exceeding one (1) year, for which the grain is accepted for storage under this subchapter.
    2. The warehouseman shall, in the absence of some lawful excuse, issue a new receipt for a further specified period not to exceed one (1) year, provided that the following conditions are met:
      1. Demand for issuance of a new receipt;
      2. Surrender of the old receipt by the lawful holder at or before the expiration of the period specified therein; and
      3. An offer to satisfy the warehouseman's lien.
  2. Every negotiable receipt issued shall, in addition to conforming with the requirements of subsection (a) of this section, embody within its written or printed terms a form of endorsement which may be used by the depositor or his or her authorized agent for showing the ownership of, and liens, mortgages, or other encumbrances on, the grain covered by the receipt.
  3. A public grain warehouseman shall not insert any language in any warehouse receipt or make any contract with respect to any warehouse receipt which purports to limit the liabilities or responsibilities imposed on him or her by law.

History. Acts 1979, No. 83, § 26; A.S.A. 1947, § 77-1326.

Case Notes

Negotiable Receipts.

Warehouse receipts being negotiable instruments, their transfer carried the title to the cotton represented by them, subject to outstanding superior title. Sewell v. Federal Compress & Whse. Co., 194 Ark. 199, 106 S.W.2d 209 (1937) (decision under prior law).

2-17-222. Preparation of forms for warehouse receipts.

  1. The Public Grain Warehouse Commissioner shall prescribe the form of all warehouse receipts, and no other character or form of warehouse receipt shall be issued except those so authorized.
  2. The commissioner shall be authorized to have printed all warehouse receipts issued by public grain warehousemen.
  3. The cost of printing and distribution of warehouse receipts shall be charged to the grain warehouse.

History. Acts 1979, No. 83, § 27; A.S.A. 1947, § 77-1327.

2-17-223. Numbering of receipts.

All warehouse receipts issued by a public grain warehouse shall be numbered consecutively. No two (2) receipts bearing the same number shall be issued from the same warehouse during any one (1) year, except in the case of a lost or destroyed receipt.

History. Acts 1979, No. 83, § 28; A.S.A. 1947, § 77-1328.

2-17-224. Copy of receipts.

At least one (1) copy of all receipts shall be made. All copies shall have clearly and conspicuously printed or stamped on them the words “COPY — NOT NEGOTIABLE”.

History. Acts 1979, No. 83, § 29; A.S.A. 1947, § 77-1329.

2-17-225. Accuracy of receipts.

No warehouse receipt shall be issued except upon actual delivery of grain into storage in the warehouse from which it purports to be issued, nor shall any receipt be issued for a greater quantity of grain than was contained in the lot or parcel received for storage, nor shall more than one (1) receipt be issued for the same lot of grain, except in cases where a receipt for a part of a lot is desired, and then the aggregate receipts for a particular lot shall cover that lot and no more.

History. Acts 1979, No. 83, § 30; A.S.A. 1947, § 77-1330.

2-17-226. Duty of warehouseman to deliver grain.

    1. It shall be the duty of the public grain warehouseman to deliver grain to the holder of a warehouse receipt within ten (10) days of the demand for the redemption of the receipt if no lawful excuse for not delivering the grain exists.
      1. In the event the public grain warehouseman fails to deliver grain to the holder of a warehouse receipt within ten (10) days of the demand, the holder of the warehouse receipt may make demand of the surety for payment under the bond.
        1. The surety has the responsibility to pay within fifteen (15) days following receipt by the surety of the notice of the demand for redemption.
        2. Any holder of a warehouse receipt issued by a public grain warehouseman who had made demand for redemption of the receipt, which demand was, without lawful excuse, not satisfied within ten (10) days, shall notify the Public Grain Warehouse Commissioner in writing. The holder of the receipt shall have the right to bring action against the public grain warehouseman and the surety on the public grain warehouseman's bond for payment of the market value of the grain represented by the warehouse receipt. The market value shall be determined as of the date of the demand, plus legal interest accrued from the date of the demand.
      1. In the event the public grain warehouseman is a self-insurer as provided in § 2-17-209, the holder of a warehouse receipt shall have the right to bring action against the public grain warehouseman to the extent of the amount posted in lieu of the bond.
        1. The commissioner shall pay to the holder of the warehouse receipt, to the extent of the bond posted, any judgment obtained by the holder of a warehouse receipt against a self-insurer.
        2. The commissioner may also pay to the holder of a warehouse receipt the amount of the market value of the grain if the public grain warehouseman agrees to the payment.
    2. The license of the public grain warehouseman shall be suspended upon the payment until such time as the warehouseman posts a bond under this subchapter or posts with the commissioner a sum equivalent to that paid by the commissioner on behalf of the warehouseman.
    1. In all actions in which judgment is rendered against any surety company under the provisions of this section, if it appears from evidence that the surety company has willfully and without just cause refused to pay the loss upon demand, the court, in rendering judgment, shall allow the plaintiff the amount of the plaintiff's expenses, including court costs and attorney's fees, to be recovered and collected as part of the costs.
    2. The amount of any payment of costs and attorney's fees under this subsection will not reduce the surety's liability on its bond.

History. Acts 1979, No. 83, § 31; A.S.A. 1947, § 77-1331.

2-17-227. Partial delivery.

If a warehouseman delivers only a part of a lot of grain for which he or she has issued a negotiable receipt under this subchapter, he or she shall take up and cancel the receipt and issue a new receipt in accordance with the rules in this subchapter for the undelivered portion of the grain. The new receipt shall show the date of issuance and also indicate the number and date of the receipt first issued.

History. Acts 1979, No. 83, § 32; A.S.A. 1947, § 77-1332.

2-17-228. Return of receipt.

  1. Except as permitted by law or by the rules in this subchapter, a warehouseman shall not deliver grain for which he or she has issued a negotiable receipt until the receipt has been returned to him or her and cancelled. He or she shall not deliver grain for which he or she has issued a nonnegotiable receipt until the receipt has been returned to him or her or until he or she has obtained a written order for the receipt from the person lawfully entitled to the delivery or his or her authorized agent.
  2. Before delivery is made of the last portion of a lot of grain covered by a nonnegotiable receipt, the receipt itself shall be surrendered.

History. Acts 1979, No. 83, § 33; A.S.A. 1947, § 77-1333.

2-17-229. Verification of signature.

  1. Each person to whom a nonnegotiable receipt is issued shall furnish the warehouseman with a statement in writing, indicating the person having power to authorize delivery of grain covered by the receipt, together with the bona fide signature of the person.
  2. No licensed warehouseman shall honor an order for the release of grain covered by a nonnegotiable receipt until he or she has first ascertained that the person issuing the order has authority to order the release and that the signature of the releasing party is genuine.

History. Acts 1979, No. 83, § 34; A.S.A. 1947, § 77-1334.

2-17-230. Sale or pledge of receipts.

A public grain warehouseman may make a valid sale or pledge of any warehouse receipts issued for grain of which the warehouseman is the owner, either solely or jointly in common with others. The recital of ownership in the receipt shall constitute notice of the right to sell or pledge the grains and of the title of specific lien of the transferee or pledgee upon the warehouseman's grain represented by the receipts.

History. Acts 1979, No. 83, § 35; A.S.A. 1947, § 77-1335.

2-17-231. Accepting grain for shipment.

  1. If grain is offered for storage in any licensed public grain warehouse and the public grain warehouseman does not have storage space to handle the grain, the public grain warehouseman, with the written consent of the owner, may accept grain for shipment to another public grain warehouse where storage is available.
  2. The receipt to cover grain to be transported to and stored in another public grain warehouse shall embody within its written or printed terms, in addition to the requirements of § 2-17-221, the name and location of the public grain warehouse to which the grain will be shipped for storage.

History. Acts 1979, No. 83, § 36; A.S.A. 1947, § 77-1336.

2-17-232. Grain inspector.

During all regular business hours, each public grain warehouse shall employ a grain inspector, who may be the public grain warehouseman himself or herself if the public grain warehouseman is a natural person. He or she shall inspect and weigh all grain received by the warehouse and shall be responsible for the accuracy of weights noted on all warehouse receipts.

History. Acts 1979, No. 83, § 18; A.S.A. 1947, § 77-1318.

2-17-233. Duty to maintain quality of grain.

  1. It shall be the public grain warehouseman's duty and obligation to condition and maintain the quantity and quality of all grain as receipted.
    1. If the condition of any grain offered for storage is such that it probably will adversely affect the condition of grain in the public grain warehouse, the public grain warehouseman shall not receive the grain for storage or store the grain.
    2. If the public grain warehouse has separate bins or is equipped with proper conditioning apparatus, the public grain warehouseman may receive the grain for storage in separate bins or may condition it and then store it in a manner which will not lower the grade of other grain.

History. Acts 1979, No. 83, § 19; A.S.A. 1947, § 77-1319.

2-17-234. Records to be maintained.

  1. Every public grain warehouseman shall keep, in a place of safety, complete, separate, and correct records and accounts pertaining to the public grain warehouse. These shall include, but not be limited to, records and accounts of all grain received and withdrawn, all unissued receipts and tickets in its possession, copies of all receipts and tickets issued by it, and the receipts and tickets returned to and cancelled by it.
  2. The records shall be retained by the public grain warehouseman for a period of five (5) years.

History. Acts 1979, No. 83, § 21; A.S.A. 1947, § 77-1321.

2-17-235. Examinations and inspections.

      1. Every public grain warehouse shall be examined by the Public Grain Warehouse Commissioner, each year.
      2. The cost of the examination shall be included in the annual license fee.
      1. The Public Grain Warehouse Commissioner, at his or her discretion, may make additional examinations of any public grain warehouse at any time.
      2. If any material discrepancy is found as a result of additional examination, the cost of the examination is to be paid by the public grain warehouseman.
  1. Upon application for license renewal, every public grain warehouse shall submit a copy of its financial statement to the commissioner. The financial statement shall have been prepared by a certified public accountant and sworn to by the certified public accountant and the public grain warehouseman.
  2. The commissioner may, at his or her discretion, inspect the public grain warehouse's business, facilities, equipment, inventories, property, books, records, accounts, papers, minutes of proceedings held at the public grain warehouse, and any other records which the commissioner deems relevant to the operation of the public grain warehouse.
  3. All scales used for the weighing of property in public grain warehouses shall be subject to tests during regular business hours by the Arkansas Bureau of Standards of the State Plant Board.
  4. All records, reports, and findings of the commissioner required or issued under this subchapter may be released to any interested person and shall be made available to public inspection.

History. Acts 1979, No. 83, § 22; A.S.A. 1947, § 77-1322.

Publisher's Notes. Acts 1993, Nos. 610 and 624, § 1, provided:

“The Arkansas Bureau of Standards, created by Act 482 of 1963, as amended, the same being A.C.A. 4-18-201 et seq., and its functions, powers, duties, assets, properties, and appropriations are transferred by a type 2 transfer [see § 25-2-105] to the State Plant Board.”

2-17-236. Insolvent warehouses.

  1. If it shall be discovered that any public grain warehouse is insolvent or that its continuance in business will seriously jeopardize the interest of its creditors or grain depositors, it shall be the duty of the Public Grain Warehouse Commissioner to close the warehouse, to take charge of all the property and effects thereof, and to notify the surety.
  2. Upon taking charge of any warehouse, the commissioner shall, as soon as practicable, ascertain by a thorough examination into its affairs its actual financial condition. Whenever the commissioner shall become satisfied that the corporation cannot resume business or liquidate its indebtedness to the satisfaction of its creditors, the commissioner shall report the fact of its insolvency to the Attorney General. Immediately upon receipt of the notice, the Attorney General shall institute proper proceedings in the proper court for the purpose of having a receiver appointed.

History. Acts 1979, No. 83, § 23; A.S.A. 1947, § 77-1323.

2-17-237. Discontinuance of business.

  1. Any person operating a public grain warehouse who desires to discontinue the operation at the expiration of his or her license or whose license is suspended, revoked, or cancelled by the Public Grain Warehouse Commissioner or his or her designated representative shall notify the commissioner, all holders of warehouse receipts, and all parties storing grain in the public grain warehouse, if known, or if not known, by advertising in the newspaper of largest general circulation in the community in which the public grain warehouse is located weekly for four (4) consecutive weeks, at least thirty (30) days before the date of expiration of his or her license, of his or her intention to discontinue the public grain warehouse business.
  2. The owners of the grain shall remove or cause to be removed their grain from the public grain warehouse before the expiration of the license.

History. Acts 1979, No. 83, § 24; A.S.A. 1947, § 77-1324.

2-17-238. Disposition of revenues.

All revenues collected under the provisions of this subchapter by the State Plant Board shall be deposited into the Plant Board Fund to be used for the maintenance, operation, support, and improvement of the board.

History. Acts 1979, No. 83, § 38; A.S.A. 1947, § 77-1338; Acts 1993, No. 783, § 4.

Subchapter 3 — Public Warehouses — Title to Grain

Effective Dates. Acts 1981, No. 401, § 7: Mar. 10, 1981. Emergency clause provided: “It is hereby found and determined by the General Assembly that Arkansas grain producers are experiencing severe losses due to their stored grain in public warehouses being sold or encumbered by the public grain warehousemen without their authorization, and that this act is immediately necessary to clarify the law and grant protection to Arkansas farmers. Therefore, an emergency is hereby declared to exist and this act being immediately necessary for the preservation of the public peace, health and safety shall be in full force and effect from and after its passage and approval.”

Research References

Ark. L. Notes.

Pedersen, Crop Financing: A Guide to Arkansas Law, 1988 Ark. L. Notes 31.

Copeland, A Statutory Primer: Article 2 of the U.C.C. — When Do Its Rules Apply?, 1990 Ark. L. Notes 39.

Ark. L. Rev.

Note, Act 401 of the Public Grain Warehouse Law: An Exception to the U.C.C. Concept of Voidable Title, 37 Ark. L. Rev. 293.

Note, Simmons First National Bank v. Wells: An Interpretation of the Uniform Commercial Code's Consignment Rule, 37 Ark. L. Rev. 312.

U. Ark. Little Rock L.J.

Survey — Business Law, 10 U. Ark. Little Rock L.J. 89.

Case Notes

Federal Agencies.

Although the Commodity Credit Corporation, an agency of the United States Department of Agriculture, is not a grower or producer protected under § 2-17-301 et seq., it is protected by § 2-17-201 et seq. which does not conflict with and was not repealed by § 2-17-301 et seq.Reynolds v. Commodity Credit Corp., 300 Ark. 441, 780 S.W.2d 15 (1989).

2-17-301. Definitions.

As used in this subchapter, unless the context otherwise requires:

  1. “Grain” means rice, soybeans, wheat, corn, rye, oats, barley, flaxseed, sorghum, mixed grain, and other food grains, feed grains, and oil seeds;
  2. “Owner” means the farmer who grows and produces grain and includes the owner of the land from which the grain is produced to the extent that he or she has an interest in the grain, and includes persons, firms, and corporations engaged in the growing and producing of grain whether it be as tenant, renter, landowner, or otherwise; and
  3. “Public grain warehouseman” means any person, firm, or corporation who operates any building, structure, or other protected enclosure used for the purpose of storing grain for a consideration.

History. Acts 1981, No. 401, § 1; A.S.A. 1947, § 77-1339.

Case Notes

Owner.

While lessor may have come within the definition of “owner” as set forth in subdivision (3) of this section because of lessor's interest in the grain under its statutory landlord's lien, under § 18-41-101 this lien existed for only six months. Rufus Comer Farms v. First State Bank, 47 Ark. App. 3, 884 S.W.2d 265 (1994).

Cited: Simmons First Nat'l Bank v. Wells, 279 Ark. 204, 650 S.W.2d 236 (1983).

2-17-302. Applicability.

The provisions of this subchapter shall apply to all public grain warehousemen and to the operations of public grain warehouses, unless the public grain warehouse is licensed under the provisions of the United States Warehouse Act, as amended.

History. Acts 1981, No. 401, § 5; A.S.A. 1947, § 77-1342.

U.S. Code. The United States Warehouse Act referred to in this section is codified as 7 U.S.C. § 241 et seq.

2-17-303. Title to grain.

  1. Ownership of grain shall not change by reason of an owner's delivering grain to a public grain warehouseman. No public grain warehouseman shall sell or encumber any grain in his or her possession unless the owner of the grain has by written document transferred title of the grain to the warehouseman.
  2. Notwithstanding any provision of the Uniform Commercial Code, as amended, § 4-1-101 et seq., to the contrary or any other law to the contrary, all sales and encumbrances of grain by public grain warehousemen are void and convey no title unless the sales and encumbrances are supported by written documents executed by the owners specifically conveying title to the grain to the public warehousemen.

History. Acts 1981, No. 401, § 2; A.S.A. 1947, § 77-1340.

Research References

U. Ark. Little Rock L.J.

Adams, “Clear Title” for Farm Products: Congress and the Arkansas Legislature Attempt to Solve a Troublesome Problem, 10 U. Ark. Little Rock L.J. 619.

Case Notes

Applicability.

A federally licensed warehouse is exempt from this section. In re Bearhouse, Inc., 84 B.R. 552 (Bankr. W.D. Ark. 1988).

Landlord's claim for rent from the proceeds of grain sales was not protected by this section. Rufus Comer Farms v. First State Bank, 47 Ark. App. 3, 884 S.W.2d 265 (1994).

Advance Payments.

Unless transfer of title from a producer to a warehouseman has occurred, the grain is to be regarded as stored rather than sold, so the giving and taking of an advance payment does not remove the storer from the bond's protection under § 2-17-209. Tucker v. Durham, 285 Ark. 264, 686 S.W.2d 402 (1985).

Specific Conveyance by Written Document.

The language of this section that no title shall be transferred unless title is specifically conveyed to the warehousemen by a written document signed by the owner must be taken literally, and to do less would be to disregard the plain intent and purpose of the statute; thus, language that could be interpreted to mean that the owner was selling his or her grain was not sufficient to comply with the dictates of this section. Cooper, Inc. v. Farm Bureau Mut. Ins. Co., 289 Ark. 218, 711 S.W.2d 155 (1986).

Voidable Sales.

This section does not say a farmer can void an outright sale he or she makes to a warehouseman; rather, only a sale made by a warehouseman of grain delivered to him or her or storage can be voided. Farm Bureau Mut. Ins. Co. v. Wright, 285 Ark. 228, 686 S.W.2d 778 (1985).

This section allows an owner to void a sale made by a warehouseman. Rufus Comer Farms v. First State Bank, 47 Ark. App. 3, 884 S.W.2d 265 (1994).

Cited: Simmons First Nat'l Bank v. Wells, 279 Ark. 204, 650 S.W.2d 236 (1983).

2-17-304. Waiver of rights.

Any owner may, by written document signed by him or her or his or her agent, waive any and all rights conferred upon the owner by this subchapter.

History. Acts 1981, No. 401, § 4; A.S.A. 1947, § 77-1341.

Subchapter 4 — Public Warehouses — Receivership

Effective Dates. Acts 1983, No. 342, § 18: Mar. 7, 1983. Emergency clause provided: “It is hereby found and determined by the General Assembly that farmers would be better served if state law would authorize the Grain Warehouse Commissioner to petition the proper court to serve as receiver in instances where the warehouse becomes insolvent; and that this act is immediately necessary to so provide. Therefore, an emergency is hereby declared to exist, and this act being immediately necessary for the preservation of the public peace, health and safety shall be in full force and effect from and after its passage and approval.”

2-17-401. Definitions.

  1. As used in this subchapter, unless the context otherwise requires:
    1. “Commissioner” means the Public Grain Warehouse Commissioner, who shall be the Director of the State Plant Board or his or her designated representative;
    2. “License” means a license issued under § 2-17-201 et seq.; and
    3. “Warehouse” means a public grain warehouse licensed under § 2-17-201 et seq.
  2. All other terms in this subchapter shall have the same meaning as the same terms used in the Arkansas Public Grain Warehouse Law, § 2-17-201 et seq.

History. Acts 1983, No. 342, § 1; A.S.A. 1947, § 77-1343.

2-17-402. Filing of petition.

    1. Following summary suspension of a license under § 2-17-215 or following a suspension or revocation of a license as otherwise provided in § 2-17-201 et seq., the Public Grain Warehouse Commissioner in his or her discretion may file a verified petition in the proper court requesting that the commissioner be appointed as a receiver to take custody of grain stored in the licensee's warehouse and to provide for the disposition of those assets in the manner provided in this subchapter and under the supervision of the court.
    2. The petition shall be filed in the county in which the warehouse is located.
    3. The proper court shall appoint the commissioner as receiver.
  1. Upon the filing of the petition, the court shall issue ex parte such temporary orders as may be necessary to preserve or protect the assets in receivership, or the value thereof, and the rights of depositors, until a plan of disposition is approved.

History. Acts 1983, No. 342, § 2; A.S.A. 1947, § 77-1344.

Case Notes

Cited: Reynolds v. Commodity Credit Corp., 300 Ark. 441, 780 S.W.2d 15 (1989).

2-17-403. Plan for disposition of grain.

  1. A petition filed by the Public Grain Warehouse Commissioner under § 2-17-402 shall be accompanied by the commissioner's plan for disposition of stored grain.
    1. The plan may provide for the pro rata delivery of part or all of the stored grain to depositors holding warehouse receipts or unpriced scale tickets;
    2. The plan may provide for the sale under the supervision of the commissioner of part or all of the stored grain for the benefit of those depositors; or
    3. The plan may provide for any combination thereof, as the commissioner in his or her discretion determines to be necessary to minimize losses.

History. Acts 1983, No. 342, § 3; A.S.A. 1947, § 77-1345.

Case Notes

Cited: Tucker v. Durham, 285 Ark. 264, 686 S.W.2d 402 (1985).

2-17-404. Date for hearing.

  1. When a petition is filed by the Public Grain Warehouse Commissioner under § 2-17-402, the clerk of court shall set a date for hearing on the commissioner's proposed plan of disposition at a time not less than ten (10) nor more than fifteen (15) days after the date the petition is filed.
    1. Copies of the petition, the notice of hearing, and the commissioner's plan of disposition shall be served upon the licensee and upon the surety company issuing the licensee's bond in the manner required for service of an original notice.
    2. A delay in effecting service upon the licensee or surety shall not be cause for denying the appointment of a receiver and shall not be grounds for invalidating any action or proceeding in connection therewith.

History. Acts 1983, No. 342, § 4; A.S.A. 1947, § 77-1346.

2-17-405. Notice and parties.

  1. The Public Grain Warehouse Commissioner shall cause a copy of each of the documents served upon the licensee under § 2-17-404 to be mailed by ordinary mail to every person holding a warehouse receipt or unpriced scale ticket issued by the licensee, as determined by the records of the licensee or the records of the commissioner.
  2. The failure of any person referred to in this section to receive the required notification shall not invalidate the proceedings on the petition for the appointment of a receiver or any portion thereof.
  3. Persons referred to in this section are not parties to the action unless admitted by the court upon application therefor.

History. Acts 1983, No. 342, § 5; A.S.A. 1947, § 77-1347.

2-17-406. Publication of appointment.

When appointed as a receiver under this subchapter, the Public Grain Warehouse Commissioner shall cause notification of the appointment to be published once each week for two (2) consecutive weeks in a newspaper of general circulation in each of the counties in which the licensee maintains a business location and in a newspaper of general circulation in this state.

History. Acts 1983, No. 342, § 6; A.S.A. 1947, § 77-1348.

2-17-407. Designation of employee to appear.

The Public Grain Warehouse Commissioner may designate an employee of the commissioner to appear on behalf of the commissioner in any proceedings before the court with respect to the receivership and to exercise the functions of the commissioner as receiver, except that the commissioner shall:

  1. Determine whether or not to petition for the appointment as receiver;
  2. Approve the proposed plan for disposition of stored grain;
  3. Approve the proposed plan for distribution of any cash proceeds; and
  4. Approve the proposed final report.

History. Acts 1983, No. 342, § 7; A.S.A. 1947, § 77-1349.

2-17-408. Arkansas Administrative Procedure Act.

The actions of the Public Grain Warehouse Commissioner in connection with petitioning for appointment as a receiver and all actions under such appointment shall not be subject to the provisions of the Arkansas Administrative Procedure Act, § 25-15-201 et seq.

History. Acts 1983, No. 342, § 8; A.S.A. 1947, § 77-1350.

2-17-409. Joining of surety.

  1. When the Public Grain Warehouse Commissioner is appointed as receiver under this subchapter, the surety on the bond of the licensee shall be joined as a party defendant by the commissioner.
    1. If required by the court, the surety shall pay the bond proceeds, or so much thereof as the court finds necessary, into the court.
    2. When so paid, the surety shall be absolutely discharged from any further liability under the bond to the extent of the payment.

History. Acts 1983, No. 342, § 9; A.S.A. 1947, § 77-1351.

2-17-410. Time for filing claims.

  1. When appointed as receiver under this subchapter, the Public Grain Warehouse Commissioner is authorized to give notice in the manner specified by the court to persons holding warehouse receipts or unpriced scale tickets issued by the licensee to file their claims within sixty (60) days after the date of appointment.
  2. Failure to file a timely claim shall defeat the claim with respect to the surety bond and any grain or proceeds from the sale of grain, except to the extent of any excess remaining after all timely claims are paid in full.

History. Acts 1983, No. 342, § 10; A.S.A. 1947, § 77-1352.

2-17-411. Merchandiser to effect sale.

  1. When the court approves the sale of stored grain, the Public Grain Warehouse Commissioner shall employ a merchandiser to effect the sale of those commodities.
  2. A person employed as a merchandiser must meet the following requirements:
    1. The person shall be experienced or knowledgeable in the operation of warehouses licensed under the Arkansas Public Grain Warehouse Law, § 2-17-201 et seq., and if the person has ever held a license issued under the Arkansas Public Grain Warehouse Law, § 2-17-201 et seq., the person shall never have had that license suspended or revoked;
    2. The person shall be experienced or knowledgeable in the marketing of agricultural products; and
    3. The person shall not be the holder of a warehouse receipt or scale ticket issued by the licensee and shall not have a claim against the licensee, whether as a secured or unsecured creditor, and otherwise shall not have any pecuniary interest in the licensee or the licensee's business.
    1. The merchandiser shall be entitled to reasonable compensation as determined by the commissioner.
    2. A sale of grain shall be made in a commercially reasonable manner and under the supervision of the warehouse section of the commissioner.
    3. The commissioner shall have authority to sell the stored grain, notwithstanding provisions of the Uniform Commercial Code, § 4-1-101 et seq., and any stored grain so sold shall be free of all liens and other encumbrances.

History. Acts 1983, No. 342, § 11; A.S.A. 1947, § 77-1353.

2-17-412. Distribution of grain or proceeds.

  1. The plan of disposition, as approved by the court, shall provide for the distribution of the stored grain or the proceeds from the sale of stored grain or the proceeds from any surety bond, or any combination thereof, less expenses incurred by the Public Grain Warehouse Commissioner in connection with the receivership, to depositors on a pro rata basis as their interests are determined.
  2. Distribution shall be without regard to any setoff, counterclaim, or storage lien or charge.

History. Acts 1983, No. 342, § 12; A.S.A. 1947, § 77-1354.

2-17-413. Temporary continuation of business.

The Public Grain Warehouse Commissioner may, with the approval of the court, continue the operation of all, or any part of, the business of the licensee on a temporary basis and take any other course of action or procedure which will serve the interests of the depositors.

History. Acts 1983, No. 342, § 13; A.S.A. 1947, § 77-1355.

2-17-414. Reimbursement of expenses.

  1. The Public Grain Warehouse Commissioner shall be entitled to reimbursement out of stored grain or proceeds held in receivership for all expenses incurred as court costs or in handling and disposing of stored grains and for all other costs directly attributable to the receivership.
  2. The right of reimbursement of the commissioner shall be before any claims against the stored grain or proceeds of sale and shall constitute a claim against the surety bond of the licensee.

History. Acts 1983, No. 342, § 14; A.S.A. 1947, § 77-1356.

2-17-415. Distribution plan.

    1. In the event the approved plan of disposition requires the sale of stored grain or the distribution of proceeds from the surety bond, or both, the Public Grain Warehouse Commissioner shall submit to the court a proposed plan of distribution of those proceeds.
    2. Upon such notice and hearing as may be required by the court, the court shall accept or modify the proposed plan.
  1. When the plan is approved by the court and executed by the commissioner, the commissioner shall be discharged and the receivership terminated.

History. Acts 1983, No. 342, § 15; A.S.A. 1947, § 77-1357.

2-17-416. Final report.

At the termination of the receivership, the Public Grain Warehouse Commissioner shall file a final report containing the details of his or her actions, together with such additional information as the court may require.

History. Acts 1983, No. 342, § 16; A.S.A. 1947, § 77-1358.

Chapter 18 Seeds

Preambles. Acts 1931, No. 73, contained a preamble which read:

“Whereas, the necessity for high grade planting seed for agricultural crops is hereby recognized, the purpose of this act shall be to enable farmers to secure pure bred agricultural seeds true to variety, free from noxious weed seeds and free from plant diseases transmittable through the agency of planting seed and free from insect infestation … .”

Effective Dates. Acts 1997, No. 317, § 8: Mar. 3, 1997. Emergency clause provided: “It is hereby found and determined by the General Assembly that Act 10 of the First Extraordinary Session of 1995 abolished the Joint Interim Committee on Agriculture and Economic Development and in its place established separate House and Senate Committees; that various sections of the Arkansas Code refer to the Joint Interim Committee on Agriculture and Economic Development and should be corrected to refer to the House and Senate Interim Committees; that this act so provides; and that this act should go into effect immediately in order to make the laws compatible as soon as possible. Therefore, an emergency is declared to exist and this act being immediately necessary for the preservation of the public peace, health and safety shall become effective on the date of its approval by the Governor. If the bill is neither approved nor vetoed by the Governor, it shall become effective on the expiration of the period of time during which the Governor may veto the bill. If the bill is vetoed by the Governor and the veto is overridden, it shall become effective on the date the last house overrides the veto.”

Research References

Am. Jur. 3 Am. Jur. 2d, Agri., § 51.

C.J.S. 3 C.J.S., Agri., § 84 et seq.

2-18-101. Definitions.

As used in this chapter, unless the context otherwise requires:

  1. “Board” means the State Plant Board;
  2. “Person” means individuals, partnerships, corporations, associations, or two (2) or more individuals having a joint or common interest; and
  3. “Seed” means any agricultural seeds or plants used to produce a crop.

History. Acts 1931, No. 73, § 1; Pope's Dig., § 12334; A.S.A. 1947, § 77-315.

2-18-102. Penalty — Revocation of certificate.

    1. Any person shall be guilty of a violation who:
      1. Falsely advertises or proclaims that seed has been certified by the State Plant Board;
      2. Uses any emblem, label, or language for the purpose of misleading a person into believing that seed has been certified by the board when it has not;
      3. Misuses any tag, label, or certificate issued by the board;
      4. Obtains or attempts to obtain certification for seed or plants by making false statements or misrepresentations to the board or to the board's inspectors, deputies, or agents;
      5. Having received a certificate, violates any of the rules of the board made under this chapter; or
      6. Violates any agreement made as a condition for receiving a certificate.
    2. Upon conviction, an offender shall be punished by a fine of not less than twenty-five dollars ($25.00) nor more than five hundred dollars ($500) for each offense.
    1. When the person holds a certificate from the board, the certificate, after a hearing before the Director of the State Plant Board has been given to the person, shall be revoked by the director regardless of whether a prosecution is commenced.
      1. Any person whose certificate is revoked by the director shall be entitled to an appeal to the board.
      2. The board's decision shall be final.

History. Acts 1931, No. 73, § 7; Pope's Dig., § 12354; A.S.A. 1947, § 77-320; Acts 2005, No. 1994, § 10.

Amendments. The 2005 amendment substituted “violation” for “misdemeanor” in (a)(1); and deleted “or” at the end of (a)(1)(A)-(D).

2-18-103. Investigation and certification.

    1. The State Plant Board is empowered to investigate and certify to varietal purity and fitness for planting of agricultural seed on request of the grower thereof.
      1. For this purpose, the board shall set up, in its rules, one (1) or more classifications of seed, designating the classifications as “Registered” and “Certified” or by any other one (1) or more names which it may specify; and
      2. It shall specify, in its rules, the standards which seed must meet and the methods by which seed must be handled in order to be certified under the classifications.
  1. Any person applying for certification of seed must, if required by the board, produce satisfactory evidence as to character, qualifications as a seed breeder, and possession of such facilities for the growing and handling of purebred seed as may be deemed necessary by the board.

History. Acts 1931, No. 73, § 3; Pope's Dig., § 12350; A.S.A. 1947, § 77-316.

Case Notes

Liability of Seller.

Where there was no warranty, express or implied, other than the certificate of the State Plant Board, seller was not liable for breach of warranty in the sale of such seed. Smith v. Tatum, 198 Ark. 802, 131 S.W.2d 619 (1939) (decision under prior law).

2-18-104. Rules.

The State Plant Board:

  1. Shall promulgate all rules necessary to carry into effect the purpose of this chapter, which is to provide supplies of high-grade seed, true to name and free from disease, for planting purposes;
  2. Shall make rules to protect the interest of breeders who have developed high-quality strains of seed; and
  3. May appoint or may authorize the Director of the State Plant Board to appoint such deputies as shall be necessary to carry into effect the purpose of this chapter.

History. Acts 1931, No. 73, § 4; Pope's Dig., § 12351; A.S.A. 1947, § 77-317.

Cross References. Rules authorized, § 2-16-207.

2-18-105. Fees.

  1. To cover costs of inspection and certification, the State Plant Board shall require reasonable fees of all applicants in advance. These fees shall be deposited into a separate fund and shall be used in carrying out the purposes of this chapter.
    1. To cover costs of promotion and advertising of certified seed, the board after a public hearing shall establish by rule promotion and advertising fees which shall be collected in advance. The fees shall be assessed upon the acreage grown for certified agricultural seed production or upon the number of certified tags and labels sold for production of certified seed from the acreage.
    2. Those fees collected for seed promotion and advertising shall be remitted by the board to the Arkansas Seed Dealers' Association and the Arkansas Seed Growers Association, or their successors, which shall establish and administer their own promotion and advertising programs.
    3. Before collecting the fees under this subsection or increasing those fees hereafter, the board shall seek the advice of the House Committee on Agriculture, Forestry, and Economic Development and the Senate Committee on Agriculture, Forestry, and Economic Development.

History. Acts 1931, No. 73, § 5; Pope's Dig., § 12352; A.S.A. 1947, § 77-318; Acts 1991, No. 955, § 1; 1997, No. 317, § 3; 2019, No. 315, § 13.

Amendments. The 2019 amendment substituted “rule” for “regulation” in the first sentence of (b)(1).

Cross References. Deposit of fees in State Treasury, § 2-16-104.

2-18-106. Certificates of inspection.

  1. Persons whose seed has met the standards set up by the State Plant Board and who have complied with all the provisions of this chapter and with all the rules of the board made under this chapter shall receive from the board the proper certificate of inspection designating the classification of seed.
  2. Each bag or other container of seed sold under the classification designated by a certificate of the board shall bear an appropriate tag or label securely attached to it.
  3. Certificates issued under the provisions of this section shall run one (1) crop season only.

History. Acts 1931, No. 73, § 6; Pope's Dig., § 12353; Acts 1985, No. 279, § 1; A.S.A. 1947, § 77-319.

2-18-107. Improper use of terms.

  1. It shall be unlawful for any person to use the terms “certified” or “registered” as applied to the quality of seed or plants or to use any other term applying to seed classifications promulgated by the State Plant Board, without first having applied for and received the proper certificate from the board.
  2. Any person violating the provisions of this section shall be punished as provided in § 2-18-102.

History. Acts 1931, No. 73, § 8; Pope's Dig., § 12355; A.S.A. 1947, § 77-321.

2-18-108. Intergovernmental cooperation.

In administering this chapter, the State Plant Board is authorized to cooperate to the fullest extent with other agencies of the state and federal government.

History. Acts 1931, No. 73, § 9; Pope's Dig., § 12356; A.S.A. 1947, § 77-322.

2-18-109. Aflatoxin levels.

The level of aflatoxin in Arkansas-grown grain and seed sold or distributed in this state shall be monitored by the State Plant Board.

History. Acts 1999, No. 1374, § 1.

2-18-110. Testing for aflatoxin.

Methods of sampling and analysis of the grain and seed described in § 2-18-109 shall meet the standards prescribed by the United States Grain Inspection, Packers and Stockyards Administration.

History. Acts 1999, No. 1374, § 2.

2-18-111. Rules regarding aflatoxin.

The State Plant Board may establish rules necessary to implement the provisions of §§ 2-18-109, 2-18-110, and this section.

History. Acts 1999, No. 1374, § 3.

2-18-112. Local legislation preemption — Definitions.

  1. As used in this section:
    1. “Local legislation” means any ordinance, motion, resolution, amendment, regulation, or rule adopted by a political subdivision of this state; and
    2. “Political subdivision” means a local governmental entity, including without limitation a city, county, township, or municipal corporation and any other body corporate and politic that is responsible for government activities in a geographical area smaller than that of the state.
  2. A political subdivision shall not:
    1. Regulate the registration, packaging, labeling, sale, storage, distribution, cultivation, any other use, or application of seeds; or
    2. Adopt or continue in effect local legislation relating to the registration, packaging, labeling, sale, storage, distribution, cultivation, any other use, or application of seeds.
  3. Local legislation in violation of this section is void and unenforceable.
  4. This section does not prohibit a city of the first class, a city of the second class, or an incorporated town from exercising the legitimate police powers of the city or town over building, planning, and zoning regulations under § 14-56-201 et seq., § 14-56-301 et seq., and § 14-56-401 et seq.

History. Acts 2017, No. 156, § 1.

Chapter 19 Fertilizers, Liming Materials, and Soil Amendment

Subchapter 1 — General Provisions

[Reserved.]

Subchapter 2 — Fertilizers

Cross References. Pipeline companies transporting ammonia and other substances composing fertilizer or its manufacture, § 23-15-105.

A.C.R.C. Notes. “References to “this subchapter” in §§ 2-19-1012-19-210 may not apply to § 2-19-211 which was enacted subsequently.

Effective Dates. Acts 1953, No. 221, § 3: approved Mar. 5, 1953. Emergency clause provided: “It has been found and is hereby declared by the General Assembly of the State of Arkansas that the distribution of anhydrous ammonia and other fertilizers sold in bulk to the farmers of this state is being seriously hampered and that only the provisions of this act will alleviate this situation. Therefore, an emergency is declared to exist, and this act being necessary for the preservation of the public peace, health and safety shall take effect and be in full force from and after its passage.”

Acts 1981, No. 398, § 3: July 1, 1981. Emergency clause provided: “It is hereby found and determined by the General Assembly of the State of Arkansas that the soils testing and research programs and facilities of the University of Arkansas have made substantial contributions to the agricultural and livestock industries in this state through information derived through research and testing that has led to improved uses of fertilizers and improved formulation of fertilizers used in crop and plant production; that the existing soils testing facilities and funds available for soils testing and research are not adequate to meet the agricultural and livestock needs of this state, and that the immediate passage of this act is necessary to enable the State Plant Board to collect sufficient fees from the inspection of fertilizer to provide the funds for the efficient and necessary operation of the plant board and the horticulture and soils testing and research facilities of the University of Arkansas, to provide the funds essential for the operation of existing programs and continued progress in the use of fertilizers in crop and plant production in this state, and that the immediate passage of this act is necessary to enable the plant board to collect said fees for the purposes set forth in this act. Therefore, an emergency is hereby declared to exist and this act, being necessary for the immediate preservation of the public peace, health and safety, shall be in full force and effect from and after July 1, 1981.”

Acts 1993, No. 783, § 13: Mar. 29, 1993. Emergency clause provided: “It is hereby found and determined by the Seventy-Ninth General Assembly meeting in Regular Session that the provisions of this act are of critical importance to the state's ability to continue the duties, responsibilities, and functions of the State Plant Board. Therefore, an emergency is hereby declared to exist and this act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after its passage and approval.”

Research References

ALR.

Products liability for fertilizers, insecticides, pesticides, fungicides, weed killers, or articles used in application thereof. 12 A.L.R.4th 462.

Am. Jur. 3 Am. Jur. 2d, Agri., § 58.

C.J.S. 3 C.J.S., Agri., § 93 et seq.

2-19-201. Penalty.

  1. Any person selling or offering for sale any fertilizer or fertilizer material in violation of a provision of this subchapter, of a rule made under this subchapter, or of a notice issued under the authority of this subchapter shall be guilty of a violation.
  2. Upon conviction, an offender shall be fined in any sum not less than one hundred dollars ($100) nor more than five hundred dollars ($500).

History. Acts 1951, No. 106, § 10; A.S.A. 1947, § 77-714; Acts 2005, No. 1994, § 11; 2019, No. 315, § 14.

Amendments. The 2005 amendment substituted “violation” for “misdemeanor” in (a).

The 2019 amendment substituted “rule” for “regulation” in (a).

2-19-202. Registration required for fertilizer brands and materials — Licensing required for fertilizer blending and storage facilities — Definition.

    1. All manufacturers, jobbers, and manipulators of commercial fertilizers and of fertilizer materials to be used in the manufacture of fertilizer, who may desire to sell or offer for sale in Arkansas fertilizer and fertilizer materials, shall first file for registration with the State Plant Board, upon forms furnished by the board. The forms shall include the name of the brand of each fertilizer, fertilizer materials, or chemicals which they may desire to sell in the state, either by themselves or their agents, together with the names and addresses of the manufacturers or manipulators, and such other information as may be required by the board in its rules.
    2. A registrant shall not be required to register each grade of fertilizer that is formulated but shall report the mixed formulations on a monthly basis as required by § 2-19-209.
    3. All registrations must be approved by the board or its authorized agent before being effective.
    4. Registrations may be cancelled by the board for repeated flagrant violations of this subchapter, after notice and a hearing.
      1. Each commercial fertilizer registrant shall report the guaranteed analysis by net weight of each registered fertilizer brand and the name and address of the registrant.
      2. Except for specialty fertilizers as defined in subdivision (d)(2) of this section, no guaranteed analysis of complete fertilizer shall be allowed indicating fractional units of primary plant food.
      3. Raw materials may be registered under a guarantee of the actual plant food content.
      4. In the case of bone meal, the phosphoric acid content shall be stated as a total, and its actual nitrogen content shall be stated.
      5. In the case of rock phosphate, both the total and available phosphoric acid content shall be stated.
    1. All manufacturers, jobbers, blenders, and manipulators of commercial fertilizers and of fertilizer materials to be used in the manufacture of fertilizer, who may desire to sell or offer for sale in Arkansas fertilizer or fertilizer materials, shall first obtain a facility license from the board for each fertilizer blending or bulk storage facility which they operate.
    2. After notice and hearing, the board shall, by rules, promulgate the standards and criteria which it determines are necessary to license fertilizer blending or bulk storage facilities.
      1. The board may, under its rules, set and collect reasonable fertilizer brand registration and facility licensing fees.
      2. The fees shall be deposited into the Plant Board Fund of the State Treasury.
    1. All registrations shall expire on June 30 of each year.
  1. Any commercial fertilizer sold must contain a minimum of twenty (20) units of primary plant food, except for the following exemptions for special agricultural crop fertilizer formulations and for specialty fertilizers:
      1. Commercial fertilizers which are needed in special cases for special agricultural crop uses shall be permitted to be sold in less than the combined twenty-unit minimum of primary plant food elements.
        1. The special agricultural crop-use fertilizers with less than the twenty-unit minimum shall be permitted for sale only after the fertilizer grade is registered with the board.
        2. In order to register the fertilizer grade, the applicant shall submit a written justification which shall show the need for such special fertilizer grade and shall include the fertilizer materials to be used in the special agricultural crop fertilizer formulation.
        3. The board or its designee shall evaluate the formulation based on criteria established by rules of the board; and
      1. A “specialty fertilizer” is any fertilizer distributed primarily for nonfarm use, such as for home gardens, lawns, shrubs, flowers, golf courses, municipal parks, cemeteries, greenhouses, and nurseries.
      2. “Specialty fertilizer” includes a fertilizer used for research or experimental purposes.

History. Acts 1951, No. 106, § 1; 1957, No. 356, § 1; 1981, No. 398, § 1; A.S.A. 1947, § 77-701; Acts 1991, No. 189, § 1; 1993, No. 352, § 1; 1993, No. 373, § 1; 2019, No. 378, § 3.

Amendments. The 2019 amendment added the (d)(1)(A) and (d)(1)(B) designations; redesignated (d)(2) as (d)(2)(A) and (d)(2)(B); and made stylistic changes.

Case Notes

Nonresident Seller.

Where an agent of nonresident seller came into Arkansas and solicited the buyer to buy fertilizer from his or her company and the parties entered into a written contract in Arkansas, subject to the approval of the seller's home office, there was an actual proffer of sale within the state to a particular person in the state that constituted an “offer for sale within the state” of fertilizers within the meaning of former similar law. Empire Carbon Works v. J.C. Barker & Co., 132 Ark. 1, 199 S.W. 929 (1917) (decision under prior law).

2-19-203. Sale of unregistered fertilizer.

  1. It shall be unlawful for any manufacturer, individual, corporation, or company, either by themselves or agents, to sell or offer for sale in this state any fertilizer brand or fertilizer materials that have not been registered with and the registration approved by the State Plant Board or its authorized representative, as required by this subchapter.
  2. The fact that the purchaser waives the inspection and analysis thereof shall be no protection to the party selling or offering for sale fertilizer brands or fertilizer materials.
  3. It shall be unlawful for any manufacturers, jobbers, blenders, and manipulators of commercial fertilizers and of fertilizer materials, whether an individual, corporation, or company, either by themselves or by their agents, to sell or offer for sale in this state any fertilizer brand or fertilizer materials that were manufactured at an unlicensed fertilizer blending or bulk storage facility, as required by this subchapter.

History. Acts 1951, No. 106, § 5; A.S.A. 1947, § 77-708; Acts 1991, No. 189, § 2.

2-19-204. Exempted transactions.

Nothing in this subchapter shall be construed to restrict or prohibit sales of superphosphates or any other fertilizer materials to one another by importers, manufacturers, or manipulators who mix materials for sale, or prevent the free and unrestricted shipments of materials to manufacturers who have registered their brands, as required by this subchapter.

History. Acts 1951, No. 106, § 9; A.S.A. 1947, § 77-712.

2-19-205. Statement required on each container.

  1. Before selling or offering for sale in this state complete fertilizer or fertilizer materials, all persons, companies, manufacturers, dealers, or agents shall brand, print, or attach to each bag or other container:
    1. A true statement giving the name and address of the manufacturer or guarantor;
    2. The net weight of the package or other container, in pounds;
    3. The brand name or trademark;
    4. The guaranteed analysis: nitrogen %, phosphoric acid, available %, potash soluble in distilled water %; and
    5. Such other information as the State Plant Board may require in its rules.
  2. This information shall be given in the invoice rather than on the container for sales of anhydrous ammonia and other fertilizers in bulk.
  3. All the provisions of this subchapter which apply to statements or guarantees appearing on containers shall apply equally to information contained in the invoice.

History. Acts 1951, No. 106, § 2; 1953, No. 221, § 1; A.S.A. 1947, § 77-702.

Case Notes

Validity of Note.

In an action on a promissory note given for the purchase of a commercial fertilizer for an agreed price, it was a good defense that the sale of the fertilizer was made in this state and that the fertilizer had never been analyzed by the Commissioner of Mines, Manufactures, and Agriculture (now State Plant Board) nor tags affixed to the bags as required by the law. Florence Cotton Oil Co. v. Anglin, 105 Ark. 672, 152 S.W. 295 (1912) (decision under prior law).

2-19-206. Penalty for deficiency from guaranteed analysis.

    1. If any commercial fertilizer or fertilizer material offered for sale in this state shall, upon official analysis, prove deficient from its guarantee as stated on the bag or other container, to the extent of three percent (3%) and not over five percent (5%), then the manufacturer of the commercial fertilizer or fertilizer materials or his or her agent shall be liable for the actual deficiency as shown by the official analysis.
    2. If the deficiency is over five percent (5%), then the penalty will be three (3) times the amount of the total deficiency as found by the official analysis.
    3. The penalty shall apply only to the shipment sampled.
    4. In its rules, the State Plant Board may set up penalties for any guaranteed constituents found deficient beyond a reasonable tolerance.
    1. Penalties assessed under this section and under such rules as may be enacted under it, except those exceeding the actual value of the shortages found, shall be paid to the consumer of the lot of deficient fertilizer within thirty (30) days after the date of notice from the board to the manufacturer or agent, receipts to be taken and promptly forwarded to the board.
    2. The value of the deficiencies, if any, exceeding the actual shortages, and the actual value of the shortages when the consumer cannot be found, shall be paid to the board within forty-five (45) days after the date of notice from the board to the manufacturer or his or her agent and shall be deposited into the Feed and Fertilizer Fund of the State Treasury.
    1. The board shall ascertain the market value of the materials from the manufacturers of fertilizer and fertilizer materials specified in this subchapter to be used in the manufacture of fertilizer and fertilizer materials and from other reliable sources. This determination shall be done to fix units of value on them to be used in determining the amount of damages due when the official analysis shows a deficiency from the guaranteed analysis as specified in this subchapter.
    2. The board is authorized to cancel the present registration or refuse to register for the next season any fertilizer or fertilizer materials offered for sale by any manufacturer, jobber, or manipulator who fails or refuses to comply with this section.

History. Acts 1951, No. 106, § 3; 1957, No. 356, § 2; A.S.A. 1947, § 77-703.

Case Notes

Recovery by Seller.

In action on notes taken in payment for fertilizer, the seller was entitled to recover if the jury found that the fertilizer contained the ingredients named in the percent stated on the tags attached to the sacks or if there was no greater deficiency than three percent. Warren Cotton Oil & Mfg. Co. v. Gorman, 123 Ark. 279, 185 S.W. 433 (1916) (decision under prior law).

2-19-207. Sampling fertilizers.

The inspectors for the State Plant Board shall obtain samples of fertilizer or fertilizer materials in the following manner:

  1. They shall draw samples with a core instrument that shall not be less than twelve inches (12") in length in a manner that will procure a representative sample from such shipments of fertilizer or fertilizer materials as they may be directed by the board or that they may find uninspected;
  2. Where there are ten (10) packages or less, they shall take samples from every package; where there are ten (10) or more packages, they shall take samples from ten (10) packages, plus a sample for each additional ton. In no case do more than twenty (20) packages need to be sampled;
  3. After thoroughly mixing the samples so drawn, they shall fill a container to be approved by the board with a portion of the mixed sample for chemical analysis or inspection; and
  4. Accompanying these samples, a report shall be made giving the name of the commodity inspected, number of packages represented by sample, the name of the manufacturer, the guaranteed analysis, the place where inspected, the date of inspection, and the name of the inspector.

History. Acts 1951, No. 106, § 6; A.S.A. 1947, § 77-709.

2-19-208. Analysis of fertilizers.

    1. Samples of fertilizer or fertilizer materials obtained by the inspectors shall be delivered to the State Plant Board which shall deliver the samples to the chief department chemist who shall make or cause to be made a complete analysis thereof.
    2. Analyses are to be made according to methods adopted by the AOAC International.
    1. He or she shall file his or her analysis with the board, and it shall be recorded as official.
    2. The official analysis of fertilizer or fertilizer materials under the seal of the board shall be deemed prima facie evidence in any court of this state on the trial of any issue involved on the merits of the fertilizer or fertilizer materials represented by the sample.
    3. Three (3) copies of the official analysis shall be made:
      1. One (1) shall be sent:
        1. To the manufacturer;
        2. To the purchaser; and
      2. One (1) kept on file in the office of the board.

History. Acts 1951, No. 106, § 7; A.S.A. 1947, § 77-710.

Research References

Ark. L. Rev.

Documentary Evidence — Arkansas, 15 Ark. L. Rev. 79.

2-19-209. Monthly tonnage reports.

      1. All manufacturers and manipulators or agents representing them who have registered their brands in compliance with § 2-19-202 shall forward to the State Plant Board each month a report that shall reach its office on or before the twentieth day of the month, on the forms and in the number of copies to be prescribed by the State Plant Board.
      2. The report shall include a sworn statement of the total tonnage of all commercial fertilizers and fertilizer materials shipped or caused to be shipped for sale or consumption in this state, or which have been made, mixed, manufactured, or compounded in this state for sale or consumption in this state.
        1. The report shall be accompanied with the sum of two dollars and forty cents ($2.40) per ton or fractional ton.
        2. A fee of two dollars and forty cents ($2.40) will accompany each monthly report of tonnage which amounts to less than one (1) ton.
      1. The State Plant Board shall issue receipt for the amount received and shall deposit the sums received as follows:
        1. Sixty-two cents (62¢) of the two-dollar-and-forty-cent fee per ton or fractional ton inspected shall be deposited with the Treasurer of State as special revenues and shall be credited to the Plant Board Fund to be used for the maintenance, operation, support, and improvement of the board; and
          1. One dollar and seventy-eight cents ($1.78) of the two-dollar-and-forty-cent fee per ton or fractional ton inspected shall be remitted to the Board of Trustees of the University of Arkansas and shall be credited to a fund to be known as the “University of Arkansas, Division of Agriculture, Soil Testing and Research Fund” to be maintained in accounts in one (1) or more financial institutions in the State of Arkansas. This amount shall be expended exclusively for soil testing service and soil fertility research by the Board of Trustees of the University of Arkansas under appropriations made by the General Assembly. It shall be expended in support of one (1) or more soil testing laboratories and soil fertility research activities at the main experiment station, branch experiment stations, or subbranch experiment stations, as determined and designated by the Vice President for Agriculture of the University of Arkansas.
            1. The Board of Trustees of the University of Arkansas shall provide for the investment of any funds in the University of Arkansas, Division of Agriculture, Soil Testing and Research Fund that are not needed for current operations of the soil testing laboratories and soil fertility service and research activities and shall credit the interest earned on that investment to the credit of the University of Arkansas, Division of Agriculture, Soil Testing and Research Fund.
            2. The investment shall be of the type and nature authorized for the investment of average daily State Treasury balances by the State Board of Finance.
    1. The State Plant Board or its agents shall have the right, at any time, to inspect or audit the books of any manufacturer and manipulator or their agents to determine the correctness of the monthly reports required under this section.
    2. Refusal to allow this inspection or audit shall be deemed a violation of this subchapter, and the violator shall be subject to the penalties provided in this subchapter.
    3. For a late report or for failure to report the entire amount sold, the tonnage fee on the late reported or unreported amount shall be enhanced by ten percent (10%) if less than fifteen (15) days late, twenty percent (20%) if less than thirty-one (31) days late, and doubled if more than thirty (30) days late. Penalties shall be deposited into the Plant Board Fund; otherwise, registrations may be cancelled by the State Plant Board.

History. Acts 1951, No. 106, § 4; 1953, No. 301, § 1; 1957, No. 356, § 3; 1981, No. 398, § 2; A.S.A. 1947, § 77-707; Acts 1993, No. 783, § 1; 1999, No. 766, § 1; 2009, No. 326, § 1.

Amendments. The 2009 amendment, in (a), substituted “two dollars and forty cents ($2.40)” for “one dollar and twenty cents ($1.20)” in (a)(2)(A)(i) and (ii), substituted “Sixty-two cents (62¢) of the two dollars and forty cent ($2.40)” for “Thirty-one cents (32¢) of the one dollar and twenty cent ($1.20)” in (a)(2)(B)(i), substituted “One dollar and seventy-eight cents ($1.78) of the two dollar and forty cent ($2.40)” for “Eighty-nine cents (89¢) of the one dollar and twenty cent ($1.20)” in (a)(2)(A)(ii) (a) , inserted “Division of Agriculture” in (a)(2)(A)(ii) (a) and twice in (a)(2)(A)(ii) (b)(1) , and made related changes.

2-19-210. Rules.

  1. The State Plant Board shall have authority to establish rules in regard to the enforcement of this subchapter and in regard to inspection, analysis, and sale of fertilizer or fertilizer materials that shall not be inconsistent with the provisions of this subchapter.
  2. The board or its authorized representatives shall have authority to stop the sale of any fertilizer or fertilizer material when the sale is found in violation of this subchapter, or of the rules of the board made in accordance with this subchapter, or when it has reason to suspect that the sale is in violation of this subchapter or of the board's rules.

History. Acts 1951, No. 106, § 8; A.S.A. 1947, § 77-711.

2-19-211. Use of penalties from fertilizer tonnage fees.

All penalties received by the State Plant Board for failure to pay or report fertilizer tonnage fees shall be remitted to the Board of Trustees of the University of Arkansas, to be credited to the University of Arkansas, Division of Agriculture, Soil Testing and Research Fund in the same manner as prescribed by § 2-19-209 and to be used for the same purposes as described in § 2-19-209.

History. Acts 1999, No. 989, § 1; 2009, No. 326, § 2.

A.C.R.C. Notes. References to “this subchapter” in §§ 2-19-2012-19-210 may not apply to this section, which was enacted subsequently.

Amendments. The 2009 amendment inserted “Division of Agriculture” and made a related change.

2-19-212. Local legislation preemption — Definitions.

  1. As used in this section:
    1. “Local legislation” means any ordinance, motion, resolution, amendment, regulation, or rule adopted by a political subdivision of this state; and
    2. “Political subdivision” means any local governmental entity including without limitation, any city, county, township, or municipal corporation and any other body corporate and politic that is responsible for government activities in a geographical area smaller than that of the state.
  2. No political subdivision shall:
    1. Regulate the registration, packaging, labeling, sale, storage, distribution, use, or application of fertilizers; or
    2. Adopt or continue in effect local legislation relating to the registration, packaging, labeling, sale, storage, distribution, use, or application of fertilizers.
  3. Local legislation in violation of this section is void and unenforceable.

History. Acts 2007, No. 678, § 1.

Subchapter 3 — Liming Materials

Effective Dates. Acts 1969, No. 353, § 11: July 1, 1969.

Acts 1983, No. 724, § 4: July 1, 1983. Emergency clause provided: “It is hereby found and determined by the General Assembly of the State of Arkansas that the soils testing research and extension programs and services of the University of Arkansas have made substantial contributions to the agricultural and livestock industries in this state through information derived through research and extension that has led to improved uses of lime and improved formulation and application of lime in crop and plant production; that the existing soil testing services and funds available for soil testing research and extension are not adequate to meet the agricultural and livestock needs of this state, and that the immediate passage of this act is necessary to enable the State Plant Board to collect sufficient fees from the inspection of lime to provide the funds for the efficient and necessary operation of the plant board and soil testing research and extension services of the University of Arkansas, to provide the funds essential for the operation of existing programs and continued progress in the use of lime in crop and plant production in this state, and that the immediate passage of this act is necessary to enable the plant board to collect said fees for the purposes set forth in this act. Therefore, an emergency is hereby declared to exist and this act, being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after July 1, 1983.”

Acts 1993, No. 783, § 13: Mar. 29, 1993. Emergency clause provided: “It is hereby found and determined by the Seventy-Ninth General Assembly meeting in Regular Session that the provisions of this act are of critical importance to the state's ability to continue the duties, responsibilities, and functions of the State Plant Board. Therefore, an emergency is hereby declared to exist and this act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after its passage and approval.”

2-19-301. Title.

This subchapter shall be known as the “Arkansas Agricultural Liming Materials Act”.

History. Acts 1969, No. 353, § 1; A.S.A. 1947, § 77-1901.

2-19-302. Penalty.

Any person who shall violate any provision of this subchapter or any rule adopted under this subchapter shall upon conviction be guilty of a violation and fined not less than one hundred dollars ($100) for the first offense and not less than three hundred dollars ($300) for every subsequent offense.

History. Acts 1969, No. 353, § 8; A.S.A. 1947, § 77-1908; Acts 2005, No. 1994, § 12; 2019, No. 315, § 15.

Amendments. The 2005 amendment inserted “guilty of a violation and”.

The 2019 amendment substituted “rule” for “regulation”.

2-19-303. Labeling requirements — Definition.

  1. As used in this subchapter, unless the context otherwise requires, “liming material” means all or any form of limestone, lime rock, dolomite, marl, slag, by-product lime, brown lime, industry or factory refuse lime, and any other material moved, prepared, sold, or distributed primarily for correcting soil acidity.
  2. Every lot, package, or parcel of liming material sold or offered or exposed for sale or distribution within this state shall have on each bag, package, or other container in a conspicuous place on the outside; or in the case of bulk lime, there shall accompany each load and the vendor shall present to the purchaser a legible and true statement in the English language giving:
    1. The net weight of the contents of the package, bag, other container, or bulk load;
    2. The true name of the product;
    3. The name and principal address of the manufacturer, importer, or other guarantor;
    4. The minimum neutralizing value in terms of percent of calcium carbonate equivalent;
    5. The degree of fineness expressed as:
      1. Minimum percentage passing through a ten (10) mesh sieve;
      2. Minimum percentage passing through a sixty (60) mesh sieve; and
      3. Minimum percentage passing through a one hundred (100) mesh sieve; and
    6. Any other statements that the State Plant Board in its rules may require.
  3. In lieu of subdivisions (b)(4) and (5) of this section, the board may in its rules set minimum standards of calcium carbonate equivalence and fineness for various grades of liming materials. These grades when stated shall become the minimum guarantees of the liming material so labeled.

History. Acts 1969, No. 353, § 2; A.S.A. 1947, § 77-1902.

2-19-304. Sampling and analysis.

  1. The State Plant Board through its authorized agents is authorized to select from any package, bulk load, or lot of liming material exposed for sale or distribution in this state a quantity not less than two pounds (2 lbs.) for a sample, to be used for the purpose of an official analysis for comparison with the statement required by § 2-19-303 or the rules provided for therein.
  2. The board and its authorized agents shall have free access during reasonable business hours to all premises where liming materials are manufactured, sold, or stored, and vehicles wherein distributed, and are authorized at all times to stop-sale by written order any and all liming materials that are unregistered, misbranded, fail to meet the guarantee, or otherwise fail to comply with the provisions of this subchapter.

History. Acts 1969, No. 353, § 5; A.S.A. 1947, § 77-1905.

2-19-305. Penalty for deficiency from guaranteed analysis.

  1. If any liming material offered for sale in this state shall, upon official analysis, prove deficient from its statement of guarantee to the extent of five percent (5%) or more, then the manufacturer, importer, or guarantor of the liming material shall be liable for two (2) times the value of the actual deficiency as shown by the official analysis.
    1. Penalties assessed under this section, except those exceeding the actual value of the shortages found, shall be paid to the consumer of the lot of deficient liming material within thirty (30) days after the date of notice from the State Plant Board to the manufacturer, importer, or guarantor, receipts to be taken and promptly forwarded to the board.
    2. The value of the deficiencies exceeding the actual shortages and the actual value of the shortages when the consumer cannot be found shall be paid to the board within forty-five (45) days after the date of notice from the board to the manufacturer, importer, or guarantor and shall be deposited into the Plant Board Fund of the State Treasury.
  2. The board is authorized to cancel the present registration or to refuse to register for the next season any liming materials offered for sale or distribution by any manufacturer, importer, or guarantor who fails or refuses to comply with this section.

History. Acts 1969, No. 353, § 6; A.S.A. 1947, § 77-1906.

2-19-306. Registration and vendor's license.

  1. Registration.
    1. Before any liming material is sold or offered for sale or distribution in this state, the manufacturer, importer, or other guarantor, which is a person or firm who places or mixes liming materials of more than one (1) manufacturer in a stockpile, shall register each such liming material with the State Plant Board.
    2. The registration shall contain the statement referred to in § 2-19-303 or the rules provided for therein and be accompanied by a fee of fifteen dollars ($15.00) for each liming material.
    3. Registrations shall expire June 30 of each year.
  2. Vendor's License.
    1. It shall be unlawful for any person or firm to engage in the spreading of liming material on properties belonging to others unless application for a license shall be in the form prescribed by the board. The form shall state the name and address of the applicant and total number of spreader trucks or other similar vehicles to be used by the applicant.
    2. The application shall be accompanied by a fee of fifteen dollars ($15.00) for the license plus a fee of three dollars ($3.00) for each spreader truck or similar vehicle.
    3. Licenses shall expire June 30 of each year.

History. Acts 1969, No. 353, § 3; 1983, No. 724, § 1; A.S.A. 1947, § 77-1903.

2-19-307. Quarterly tonnage reports.

        1. All manufacturers, importers, and other guarantors who are registered under § 2-19-306(a) shall forward to the State Plant Board each quarter a report on forms prescribed by the State Plant Board, not later than thirty (30) days after the end of each quarter.
        2. Quarters shall end September 30, December 31, March 31, and June 30 of each year.
      1. The report shall include a sworn statement of the total tonnage of all liming materials distributed in this state and shall be accompanied by the sum of thirty cents (30¢) per ton or fractional ton.
    1. A fee of thirty cents (30¢) will accompany each quarterly report of tonnage which amounts to less than one (1) ton.
      1. When sales or distributions of liming materials are between registrants, the registrant who sells or distributes to a person or firm who is not a registrant shall be responsible for payment of the inspection fee unless the payment is made by the registrant initiating the transaction.
      2. Invoices of transactions between registrants shall be marked “inspection fee paid” or “inspection fee not paid”; otherwise, the registrant initiating the transaction shall be responsible for the inspection fee.
      3. The State Plant Board shall issue receipts for the amounts received and shall deposit the sums received as follows:
        1. Twenty cents (20¢) of the thirty-cent fee per ton or fractional ton inspected shall be deposited with the Treasurer of State as special revenues. It shall be credited to the State Plant Board to be used for its maintenance, operation, support, and improvement; and
          1. Ten cents (10¢) of the thirty-cent fee per ton or fractional ton inspected shall be remitted to the Board of Trustees of the University of Arkansas. This amount shall be credited to a fund to be known as the “University of Arkansas, Division of Agriculture, Soil Testing and Research Fund” to be maintained in accounts in one (1) or more financial institutions in the State of Arkansas. This amount shall be expended exclusively for soil testing service and soil fertility research and extension by the Board of Trustees of the University of Arkansas under appropriations made by the General Assembly. It shall be expended in support of one (1) or more soil testing laboratories and soil fertility research activities at the main experiment stations, branch experiment stations, or subbranch experiment stations, as determined and designated by the Vice President for Agriculture of the University of Arkansas.
            1. The Board of Trustees of the University of Arkansas shall provide for the investment of any funds in the University of Arkansas, Division of Agriculture, Soil Testing and Research Fund that are not needed for current operations of the soil testing laboratories and soil fertility service and research and extension activities and shall credit the interest earned on the investment to the credit of the University of Arkansas, Division of Agriculture, Soil Testing and Research Fund.
            2. The investment shall be of the type and nature authorized for the investment of average daily State Treasury balances by the State Board of Finance.
    1. The State Plant Board or its agents shall have the right at any time to inspect or audit the books of any manufacturer and manipulator or their agents to determine the correctness of the monthly reports required under this section.
    2. Refusal to allow this inspection or audit shall be deemed a violation of this subchapter, and the violator shall be subject to the penalties provided in it.
    3. For a late report or for failure to report the entire amount sold, the tonnage fee on the late report or unreported amount shall be doubled, and penalties shall be deposited into the Plant Board Fund; otherwise, registrations may be cancelled by the State Plant Board.

History. Acts 1969, No. 353, § 4; 1983, No. 724, § 2; A.S.A. 1947, § 77-1904; Acts 1993, No. 783, § 2; 2009, No. 326, § 3.

Amendments. The 2009 amendment inserted “Division of Agriculture” in (a)(3)(C)(ii) (a) and twice in (b)(1), and made related changes.

2-19-308. Rules.

The State Plant Board is empowered to enforce the provisions of this subchapter and to prescribe and enforce such rules relating to the sale or distribution of liming materials as may be deemed necessary to carry into effect the full intent and meaning of this subchapter.

History. Acts 1969, No. 353, § 7; A.S.A. 1947, § 77-1907.

Subchapter 4 — Soil Amendment

Effective Dates. Acts 1977, No. 377, § 15: Mar. 8, 1977. Emergency clause provided: “It is hereby found and determined by the General Assembly of Arkansas that the introduction of certain substances into the soil of this state endangers the soil of Arkansas, and poses a severe threat to the health, safety and welfare of the people of Arkansas. Therefore, an emergency is declared to exist, and this act being necessary for the preservation of the public peace, health and safety shall take effect and be in force from the date of its approval.”

2-19-401. Title.

This subchapter shall be known as the “Soil Amendment Act of 1977”.

History. Acts 1977, No. 377, § 1; A.S.A. 1947, § 77-2101.

2-19-402. Definitions.

As used in this subchapter, unless the context otherwise requires:

  1. “Active ingredient” means the ingredient or ingredients which are claimed to have beneficial effects on soil or crops growing on soils;
  2. “Adulterated” means and shall apply to any soil amendment if:
    1. It contains any deleterious or harmful agent in sufficient amount to render it injurious to beneficial plants, animals, or aquatic life when applied in accordance with the directions for use shown on the label; or if adequate warning statements and directions for use which may be necessary to protect plants, animals, or aquatic life are not shown on the label;
    2. Its composition falls below that which it is purported to possess by its labeling; or
    3. It contains noxious weed seed, harmful insects, or harmful disease organisms;
  3. “Board” means the State Plant Board;
  4. “Bulk” means in nonpackaged form;
  5. “Distribute” means to import, consign, offer for sale, sell, barter, or to otherwise supply soil amendments to any person in this state;
  6. “Distributor” means any person who imports, consigns, sells, offers for sale, barters, or otherwise supplies soil amendments in this state;
  7. “Inert ingredient” means the ingredients which do not have any beneficial or harmful effects on soil or crops but are present in the product;
  8. “Label” means the display of written, printed, or graphic matter upon the immediate container of a soil amendment;
  9. “Labeling” means all written, printed, or graphic matter upon or accompanying any soil amendment and all advertisements, brochures, posters, or television or radio announcements used in promoting the sale of a soil amendment;
  10. “Manufacturer” means any person who produces, compounds, mixes, or blends soil amendments;
  11. “Misbranded” means and shall apply if:
    1. Any soil amendment bears a label that is false or misleading in any particular;
    2. Any soil amendment is distributed under the name of another soil amendment;
    3. Any material is represented as a soil amendment or is represented as containing a soil amendment, unless the soil amendment conforms to the definition of identity, if any, prescribed by rule;
    4. The percentage of active ingredient in any soil amendment is not shown in the approved ingredient form; or
    5. The labeling on any soil amendment is false or misleading in any particular;
  12. “Name” means the specific designation under which the individual product is offered for sale;
  13. “Percent” or “percentage” means by weight;
  14. “Person” means individuals, partnerships, associations, and corporations;
  15. “Registrant” means any person who registers a soil amendment under the provisions of this subchapter; and
  16. “Soil amendment” means and includes any substance which is intended to improve the physical, chemical, or other characteristics of the soil or improve crop production, except the following:
    1. Commercial fertilizers, unless represented to contain as an active ingredient a substance other than a recognized plant food element or represented as promoting plant growth by other than supplying a recognized plant food element;
    2. Agricultural liming materials;
    3. Agricultural gypsum;
    4. Unmanipulated animal manures;
    5. Topsoil;
    6. Unmanipulated vegetable manures;
    7. Pesticides; and
    8. Herbicides.

History. Acts 1977, No. 377, § 3; A.S.A. 1947, § 77-2103; Acts 2019, No. 315, § 16.

Amendments. The 2019 amendment substituted “rule” for “regulation” in (11)(C).

2-19-403. Penalty.

Any person convicted of violation of any provision of this subchapter or the rules promulgated under this subchapter shall be guilty of a misdemeanor.

History. Acts 1977, No. 377, § 12; A.S.A. 1947, § 77-2112.

2-19-404. Administration.

This subchapter shall be administered by the State Plant Board.

History. Acts 1977, No. 377, § 2; A.S.A. 1947, § 77-2102.

2-19-405. Inspection authorized.

  1. The authorized agents of the State Plant Board may inspect, sample, analyze, and test soil amendments distributed in this state at any time and place and to such extent as may be deemed necessary to determine whether soil amendments are in compliance with this subchapter.
  2. The board and its employees or agents are authorized to enter upon public or private property during regular working hours in order to have access to soil amendments for the purpose of administering this subchapter.

History. Acts 1977, No. 377, § 9; A.S.A. 1947, § 77-2109.

2-19-406. Rules.

The State Plant Board is authorized to adopt such rules as may be necessary to administer this subchapter, including methods of sampling, methods of analysis, and designation of ingredient forms, and to promulgate definitions of identity of products.

History. Acts 1977, No. 377, § 10; A.S.A. 1947, § 77-2110.

2-19-407. Labeling requirements and approval of ingredients.

  1. Each container of a soil amendment shall be labeled on the face or display side in a readable and conspicuous form to show the following information:
    1. The net weight of the contents;
    2. The name of the product;
    3. The guaranteed analysis, including the name and the percentage of each active ingredient and the percentage of inert ingredients;
    4. A statement as to the purpose of the product;
    5. Adequate directions for use such as application rates, cultural practices, and plants to be benefited; and
    6. The name and address of the registrant.
  2. Bulk lots shall be labeled by attaching a copy of the label to the invoice which shall be furnished the purchaser.
      1. The State Plant Board may require proof of claims made for any soil amendment.
      2. If no claims are made, the board may require proof of usefulness and value of the soil amendment.
      1. For evidence of proof, the board will rely on experimental data, evaluations, or advice supplied from such sources as the University of Arkansas Agricultural Experiment Station and the University of Arkansas Cooperative Extension Service.
      2. All experimental results shall be related to Arkansas conditions for which the product is intended.
      3. The board may accept or reject other sources of proof as additional evidence in evaluating soil amendments.
      1. No soil-amending ingredient may be listed or guaranteed on the labels or labeling of soil amendments without board approval.
        1. The board may allow a soil-amending ingredient to be listed or guaranteed on the label or labeling if satisfactory supportive data is provided the board to substantiate the value and usefulness of the soil-amending ingredient.
        2. When a soil-amending ingredient is permitted to be listed or guaranteed, it must be determinable by laboratory methods and is subject to inspection and analysis.
    1. The board may prescribe methods and procedures of inspection and analysis of the soil-amending ingredient.
    2. The board may stipulate, by rule, the quantities of the soil-amending ingredients required in soil amendments.

History. Acts 1977, No. 377, § 4; A.S.A. 1947, § 77-2104; Acts 2019, No. 315, § 17.

Amendments. The 2019 amendment substituted “rule” for “regulation” in (d)(3).

2-19-408. Registration of products.

    1. Each soil amendment product shall be registered with the board before it is distributed in this state.
    2. Application for registration shall be submitted to the State Plant Board on a form prepared for that purpose showing the information required on the label, as provided in § 2-19-407, except net weight of product.
  1. The registration fee shall be set by the board for each product.
  2. All registrations shall expire on June 30 of the year for which the soil amendment product is registered.
  3. With the application for registration, the applicant shall submit a copy of the label and a copy of all advertisements, brochures, posters, and television and radio announcements to be used in promoting the sale of the soil amendment.

History. Acts 1977, No. 377, § 5; A.S.A. 1947, § 77-2105.

2-19-409. Denial or revocation of registration.

  1. The State Plant Board shall refuse to register any product that does not comply with this subchapter and the rules promulgated under it.
    1. The board is also authorized and empowered to revoke any registration upon satisfactory evidence that the registrant or any of his or her agents has used fraudulent or deceptive practices.
    2. Registration shall not be revoked until the registrant has been given an opportunity for hearing before the board or its duly authorized agent.

History. Acts 1977, No. 377, § 11; A.S.A. 1947, § 77-2111.

2-19-410. Inspection fee and sales reports.

    1. The registrant shall pay to the State Plant Board an inspection fee of thirty-seven and one-half cents (37.5¢) per ton on all products registered and sold in this state.
    2. Each registrant shall keep adequate records of sales and shall file with the board, on a monthly basis, a signed report of the tonnage distributed by county during the preceding month.
    3. The report and payment of the inspection fee shall be due on or before the twentieth day of the month.
    4. The board, after a public hearing, may change the inspection fee schedule.
    1. If the report is not filed, or the report is false in any respect or the inspection fee is not paid within the thirty-day period, the board may revoke the registration.
    2. A penalty of one dollar ($1.00) per day is assessed for each day the payment is overdue until paid.
    3. The inspection fee and the penalty shall constitute a debt and become the basis for a judgment against the registrant which may be collected by the board in any court of competent jurisdiction without prior demand.

History. Acts 1977, No. 377, § 6; A.S.A. 1947, § 77-2106.

2-19-411. Prohibited acts.

It shall be a violation of this subchapter for any person to:

  1. Distribute a soil amendment that is not registered with the State Plant Board;
  2. Distribute a soil amendment that is not labeled;
  3. Distribute a soil amendment that is misbranded;
  4. Distribute a soil amendment that is adulterated;
  5. Fail to comply with a stop-sale, use, or removal order; or
  6. Fail to pay the inspection fee.

History. Acts 1977, No. 377, § 8; A.S.A. 1947, § 77-2108.

2-19-412. Stop-sale, use, or removal orders.

  1. The State Plant Board may issue and enforce a written or printed stop-sale, use, or removal order to the owner or custodian of any lot of soil amendment to hold the lot at a designated place when the board finds the soil amendment being offered or exposed for sale is not registered, is not labeled, is misbranded, or is adulterated, until such time as the product or labeling complies with this subchapter.
  2. The soil amendment may then be released in writing by the board.

History. Acts 1977, No. 377, § 7; A.S.A. 1947, § 77-2107.

2-19-413. Injunctions.

  1. The State Plant Board is authorized to apply for, and the court is authorized to grant, a temporary or permanent injunction restraining any person from violating or continuing to violate any of the provisions of this subchapter or any rule promulgated under it, notwithstanding the existence of other remedies at law.
  2. The injunction shall be issued without bond.

History. Acts 1977, No. 377, § 12; A.S.A. 1947, § 77-2112; Acts 2019, No. 315, § 18.

Amendments. The 2019 amendment deleted “or regulation” following “rule” in (a).

2-19-414. Deposit of moneys.

  1. The State Plant Board shall remit all moneys received by or for it under this subchapter to the Treasurer of State.
  2. Upon receipt of any remittance, the Treasurer of State shall deposit the entire amount into the State Treasury and handle the funds in the same manner as required in § 2-19-209.

History. Acts 1977, No. 377, § 13; A.S.A. 1947, § 77-2113.

Subchapter 5 — Natural Organic Fertilizers

Effective Dates. Acts 1988 (4th Ex. Sess.), No. 24, § 3: July 25, 1988. Emergency clause provided: “It is hereby found and determined by the General Assembly of the State of Arkansas that the use of 100 percent natural organic fertilizer will make substantial contributions to the agricultural industry in the State, and enable the State Plant Board to collect additional fees to provide for the efficient and necessary operation of the State Plant Board. Therefore, an emergency is hereby declared to exist and this act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after its passage and approval.”

2-19-501. Definition.

“One hundred percent (100%) natural organic fertilizer” shall be defined as and include the following:

    1. One hundred percent (100%) organic fertilizer — Materials derived from either plant or animal products containing one (1) or more elements other than carbon, hydrogen, and oxygen which are essential for plant growth.
    2. These materials may be subjected to biological degradation processes under conditions of drying, composting, enzymatic or anaerobic/aerobic bacterial action or any combination of these.
    3. These materials shall not be mixed with synthetic materials;
  1. One hundred percent (100%) natural organic fertilizer shall be processed from only one hundred percent (100%) animal substrate. No other organic or inorganic, natural or synthetic, additives shall be used during processing and no fortification may be used;
  2. One hundred percent (100%) natural organic fertilizers shall contain as a guaranteed analysis not less than: nitrogen (N), four percent (4.0%); phosphoric acid (P2O5), two percent (2.0%); and potash (K2O), four percent (4.0%); and
  3. Determination of the guaranteed analysis will be according to methods adopted by the AOAC International. (Fertilizers and Materials Containing Large Quantities of Organic Matter; 12th edition, With Following Improvements.).

History. Acts 1988 (4th Ex. Sess.), No. 24, § 1; 1991, No. 968, § 1; 2019, No. 378, § 4.

Amendments. The 2019 amendment redesignated the introductory language of (1) as (1)(A), and redesignated former (1)(A) and (1)(B) as (1)(B) and (1)(C).

2-19-502. Regulation and supervision — Fees and penalties — Guarantee of elements.

  1. The State Plant Board shall have the authority to regulate and supervise the manufacture and sale of one hundred percent (100%) natural organic fertilizer, including the setting and collecting of reasonable fees for sampling and analyzing the fertilizer and registering manufacturers, and shall adopt and promulgate such rules and penalties consistent with this subchapter, and § 2-19-202, as may be necessary.
  2. The fees and penalties set and collected by the board under this section shall not exceed like fees and penalties set for other types of fertilizers.
  3. When any reference or claim is made on the label for secondary or minor plant nutrients, a specific guarantee of the specific elements contained shall be given in the guaranteed analysis.

History. Acts 1988 (4th Ex. Sess.), No. 24, § 1; 1989, No. 42, § 1; 1991, No. 968, § 2.

2-19-503. Exemptions.

This subchapter shall not affect the private sale of unprocessed animal litter, nor shall the State Plant Board regulate the private sale of unprocessed animal litter which is not sold as one hundred percent (100%) natural organic fertilizer as defined by this subchapter.

History. Acts 1988 (4th Ex. Sess.), No. 24, § 1; 1991, No. 968, § 3.

Chapter 20 Processing, Grading, Labeling, and Marketing of Products

A.C.R.C. Notes. References to “this chapter” in subchapters 1-7 may not apply to subchapter 8 which was enacted subsequently.

Subchapter 1 — General Provisions

Publisher's Notes. With respect to certain fruits and vegetables intended for shipment outside the state, this subchapter may be superseded by § 2-20-301 et seq. governing labeling of fruits and vegetables for interstate shipment.

Cross References. Landlords or laborers lien superior to purchase of ginner's receipt, § 18-41-107.

Effective Dates. Acts 1925, No. 218, § 20: July 1, 1925.

Research References

Am. Jur. 3 Am. Jur. 2d, Agri., § 48 et seq.

C.J.S. 3 C.J.S., Agri., § 200 et seq.

2-20-101. Title.

This subchapter shall be known as the “Agricultural Products Grading Act of 1925”.

History. Acts 1925, No. 218, § 1; Pope's Dig., § 12384; A.S.A. 1947, § 77-501.

2-20-102. Definitions.

As used in this subchapter, unless the context otherwise requires:

  1. “Agricultural products” means horticultural, viticultural, bee, and other agricultural products;
  2. “Board” means the State Plant Board;
  3. “Director” means the Director of the State Plant Board;
  4. “Persons” means individuals, partnerships, corporations, associations, or two (2) or more individuals having a joint or common interest; and
  5. “Places” means vessels, cars, and other vehicles, buildings, docks, railroad platforms, orchards, fields, and other premises where agricultural products are kept, handled, or grown.

History. Acts 1925, No. 218, § 2; Pope's Dig., § 12385; A.S.A. 1947, § 77-502.

2-20-103. Penalty.

Any person who shall violate any provision of this subchapter shall be guilty of a Class B misdemeanor.

History. Acts 1925, No. 218, § 16; Pope's Dig., § 12398; A.S.A. 1947, § 77-515; Acts 2005, No. 1994, § 233.

Amendments. The 2005 amendment inserted “Class B” and deleted “and upon conviction shall be punished by a fine of not more than five hundred ($500) or by imprisonment for not more than ninety (90) days, or by both fine and imprisonment” from the end.

2-20-104. Official standards for grading.

  1. In order to promote, protect, further, and develop the agricultural interests of this state, the State Plant Board, after investigation and public hearing, is authorized and empowered to fix and promulgate official standards for grading and classifying any or all agricultural products grown or produced in this state and to fix and promulgate official standards for containers of farm products and to change any of them from time to time.
  2. The board, in its rules or notices promulgated under this subchapter, shall prescribe such tolerances as may be deemed necessary, permitting variations from the standards fixed under the provisions of this subchapter as are reasonably incident to the proper grading of agricultural products or to the manufacture of containers for farm products.

History. Acts 1925, No. 218, § 3; Pope's Dig., § 12386; A.S.A. 1947, § 77-503.

Case Notes

Cited: Stuttgart Rice Mill Co. v. Crandall, 203 Ark. 281, 157 S.W.2d 205 (1941).

2-20-105. Notice of standards.

  1. In promulgating the standards or any alterations or modifications of the standards, the State Plant Board shall specify the date when they shall become effective and shall give public notice, not less than thirty (30) days in advance of the date when the standard for any agricultural product shall become effective and one (1) year in advance of the date when the standard for any container shall become effective, by such means as the board deems proper.
  2. The Director of the State Plant Board is authorized and empowered to employ reasonable methods for diffusing information concerning the standard that may be fixed by the board for any agricultural product or container.

History. Acts 1925, No. 218, § 4; Pope's Dig., § 12387; A.S.A. 1947, § 77-504.

2-20-106. Adoption of federal standards.

  1. The State Plant Board is authorized to fix and promulgate as the official standard of this state for any agricultural product or container the standard for the product or container which may have been promulgated or announced therefor under the authority of the United States Congress.
  2. In carrying out the provisions of this subchapter, the Director of the State Plant Board is authorized to cooperate with the United States or any department thereof in accomplishing the matters and things provided for in this subchapter.

History. Acts 1925, No. 218, § 5; Pope's Dig., § 12388; A.S.A. 1947, § 77-505.

2-20-107. Container standards.

When any standard for a container for an agricultural product becomes effective under this subchapter, then no person shall manufacture for commerce within the jurisdiction of this state or sell, ship, or offer for sale in commerce any container, either filled or unfilled, to which that standard is applicable when the container does not comply with the standard, subject to such tolerance as may be permitted under this subchapter.

History. Acts 1925, No. 218, § 14; Pope's Dig., § 12396; A.S.A. 1947, § 77-513.

2-20-108. Unlawful sale or disposal.

It shall be unlawful for any person to offer for sale or to sell or otherwise dispose of any agricultural product in this state under any grade name or classification fixed for that agricultural product under the provisions of this subchapter or under any description, name, or designation which would reasonably be construed to refer to any grade name or classification fixed for that agricultural product under the provisions of this subchapter unless that agricultural product is graded or classified in conformity with the standard which may be specified for that grade or classification of the agricultural product under the provisions of this subchapter.

History. Acts 1925, No. 218, § 15; Pope's Dig., § 12397; A.S.A. 1947, § 77-514.

2-20-109. Suspension or revocation of licenses.

  1. The Director of the State Plant Board may designate any competent inspector or other employee or agent of the State Plant Board and, upon satisfactory evidence of competency, may license any other person, and charge and collect a reasonable fee for the license, to inspect or classify agricultural products in accordance with such rules as the board may prescribe at such places as the volume of business may be found to warrant the furnishing of inspection service, at the request of persons having an interest in products and to ascertain and certify the grade, classification, quality, or condition thereof, and such other pertinent facts as the board may require.
    1. The board is authorized to fix, assess, and collect or cause to be collected fees for services when they are performed by inspectors, employees, or agents of the board.
    2. Licensed inspectors may charge and collect as compensation for services only such fees as may be approved by the board.
    1. The director may suspend or revoke any license whenever, after an opportunity for hearing has been afforded to the licensee, the director shall determine that the licensee is incompetent, or has knowingly or carelessly failed to grade or classify any agricultural product in accordance with such standards, or has knowingly or carelessly failed to correctly certify the grade, classification, quality, or condition of any agricultural product, or has violated any provision of this subchapter, or of the rules made pursuant thereto.
    2. Pending investigations, the director may suspend a licensee temporarily without a hearing.

History. Acts 1925, No. 218, § 6; Pope's Dig., § 12389; A.S.A. 1947, § 77-506.

Cross References. Licenses and permits, removal of disqualification for criminal offenses, § 17-1-103.

2-20-110. Inspectors, employees, and agents.

  1. The Director of the State Plant Board may appoint deputy inspectors, employees, and agents to assist in carrying out the provisions of this subchapter.
    1. The director may require any employee or agent and any inspector licensed under this subchapter to be covered by a good and sufficient bond, payable to the state, conditional upon the faithful performance of each employee, agent, or licensed inspector of his or her duties as an employee, agent, or licensed inspector.
    2. Any person injured by the failure of an employee, agent, or licensed inspector faithfully to perform such duties shall be entitled to sue on the bond in his or her own name in any court of competent jurisdiction for the recovery of such damages as he or she may have sustained by reason of that failure.

History. Acts 1925, No. 218, § 10; Pope's Dig., § 12393; Acts 1985, No. 279, § 2; A.S.A. 1947, § 77-510.

2-20-111. Unlawful actions — Improper influence.

  1. It shall be unlawful for any inspector, employee, or agent employed under the provisions of this subchapter, or any inspector licensed under it, to:
    1. Knowingly inspect, grade, or classify improperly any agricultural product;
    2. Knowingly give any incorrect certificate of grade, classification, quality, or condition; or
    3. Accept money or other consideration, directly or indirectly, for any incorrect or improper performance of duty.
  2. It shall be unlawful for any person to improperly influence or attempt to improperly influence any inspector, employee, agent, or licensed inspector in the performance of his or her duties.

History. Acts 1925, No. 218, § 11; Pope's Dig., § 12394; A.S.A. 1947, § 77-511.

2-20-112. Administration.

  1. The State Plant Board is authorized and empowered to promulgate rules and notices for carrying out the purposes and provisions of this subchapter.
  2. All fees and moneys collected or received by inspectors, employees, or agents of the board under this subchapter and the rules which may be promulgated under it shall be deposited in a manner prescribed in § 2-16-210 and shall be used for carrying out the provisions of this subchapter.

History. Acts 1925, No. 218, § 9; Pope's Dig., § 12392; A.S.A. 1947, § 77-509.

Cross References. Deposit of fees into state treasury, § 2-16-104.

2-20-113. Right of inspection.

For the purpose of carrying out the provisions and requirements of this subchapter and the rules and notices made and promulgated under it, the State Plant Board and its inspectors shall have power to enter into or upon any place and to open any bundle, package, or container of agricultural products.

History. Acts 1925, No. 218, § 18; Pope's Dig., § 12400; A.S.A. 1947, § 77-517.

2-20-114. Appeal of certification.

    1. Whenever any quantity of any agricultural product shall have been inspected under this subchapter and a question arises as to whether the certificate issued therefor shows the true grade, classification, quality, or condition of the product, any interested person, subject to the rules as the State Plant Board may prescribe, may appeal the question to the Director of the State Plant Board.
    2. The director is authorized to cause an investigation to be made and such tests to be applied as he or she may deem necessary and to determine and issue a finding of the true grade or classification of the product or of the quality or condition thereof.
  1. Whenever an appeal shall be taken to the director under this section, he or she shall charge and assess and collect or cause to be collected a reasonable fee, to be fixed by him or her, which shall be refunded if the appeal is sustained.

History. Acts 1925, No. 218, § 7; Pope's Dig., § 12390; A.S.A. 1947, § 77-507.

2-20-115. Certificate as evidence.

When not superseded by a finding on appeal of the grade, classification, quality, or condition of any agricultural product, a certificate issued under this subchapter and all certificates issued under authority of the United States Congress relating to grade, classification, quality, or condition of agricultural products shall be accepted in any court of this state as prima facie evidence of true grade, classification, condition, or quality of the agricultural product at the time of its inspection.

History. Acts 1925, No. 218, § 8; Pope's Dig., § 12391; A.S.A. 1947, § 77-508.

Research References

Ark. L. Rev.

Documentary Evidence — Arkansas, 15 Ark. L. Rev. 79.

2-20-116. Misrepresentations.

If any quantity of any agricultural product shall have been inspected and a certificate issued under this subchapter showing the grade, classification, quality, or condition thereof, no person shall represent the grade, classification, quality, or condition of the product at the time and place of the inspection as other than shown by the certificate.

History. Acts 1925, No. 218, § 12; Pope's Dig., § 12395; A.S.A. 1947, § 77-512.

2-20-117. Rule of agency.

In construing and enforcing the provisions of this subchapter, the act, omission, or failure of any official, agent, or other person acting for or employed by any person, association, partnership, or corporation within the scope of his or her employment or office shall also be deemed in every case the act, omission, or failure of such person, association, partnership, or corporation as well as that of the official, agent, or person.

History. Acts 1925, No. 218, § 17; Pope's Dig., § 12399; A.S.A. 1947, § 77-516.

Subchapter 2 — Cotton and Cotton Gins

Cross References. Inspection of boilers, § 20-23-101 et seq.

Effective Dates. Acts 1901, No. 77, § 3: effective on passage.

Acts 1919, No. 447, § 5: effective on passage. Emergency declared. Approved Mar. 27, 1919.

Acts 1937, No. 318, § 3: approved Mar. 25, 1937. Emergency clause provided: “The theft of seed cotton and the selling thereof to ginners by the person stealing same being a serious menace to the cotton growing farmers of this state, it is necessary, in order to preserve the peace and safety of the state that the provisions of this act shall go into effect at once; and an emergency is therefore declared to exist and the provisions of this act shall be in force and effect from and after its passage.”

Research References

Am. Jur. 3 Am. Jur. 2d, Agri., § 48 et seq.

C.J.S. 3 C.J.S., Agri., § 200 et seq.

2-20-201. Public cotton gin defined.

All cotton gins in Arkansas which gin cotton other than that grown on the farm where the gin is located or on a farm owned or controlled by the operator of the gin are declared to be public cotton gins.

History. Acts 1919, No. 447, § 1; C. & M. Dig., § 10454; A.S.A. 1947, § 77-801.

2-20-202. Order in ginning.

  1. All public cotton gins in this state as defined in § 2-20-201 are required to gin all cotton brought to the gin for ginning in the order in which it is presented for ginning.
  2. Cotton offered for ginning from vehicles shall be ginned as provided and ahead of cotton stored in gin buildings if, at the time offered, it is in condition to be ginned.

History. Acts 1919, No. 447, § 2; C. & M. Dig., § 10455; A.S.A. 1947, § 77-802.

2-20-203. Method of ginning.

  1. All cotton ginned by public gins in this state, as defined in § 2-20-201, shall be ginned in such a manner as to make a good sample and to give a reasonable turnout according to the condition of the cotton and shall be paid for by the person having the cotton ginned at a reasonable price per one hundred pounds (100 lbs.) of seed cotton, plus the bagging and ties furnished by the ginner at a reasonable price.
  2. The seed from any cotton ginned shall be delivered to the person having it ginned at his or her request or may be purchased by the ginner at such price as may be agreed upon.

History. Acts 1919, No. 447, § 3; C. & M. Dig., § 10456; A.S.A. 1947, § 77-803.

2-20-204. Remedies for refusing to gin.

    1. Any person, firm, or corporation operating any public gin in this state as defined in § 2-20-201 who shall fail or refuse to gin cotton as required by §§ 2-20-202 and 2-20-203 shall be guilty of a violation.
    2. Upon conviction, an offender shall be fined in any sum not less than twenty-five dollars ($25.00) nor more than fifty dollars ($50.00).
    3. Each violation of this section shall constitute a separate offense.
  1. In addition to the fine, the offender shall be liable for double damages to the person aggrieved in a civil action.

History. Acts 1919, No. 447, § 4; C. & M. Dig., § 10457; A.S.A. 1947, § 77-804; Acts 2005, No. 1994, § 13.

Amendments. The 2005 amendment substituted “violation” for “misdemeanor” in (a)(1).

2-20-205. Records of seed cotton.

  1. Every person or corporation owning or operating any cotton gin within this state shall make and keep in a well-bound book a record of all seed cotton purchased at or for the gin, which shall show the:
    1. Name and address of the seller;
    2. Amount of seed cotton purchased;
    3. Date purchased; and
    4. Purchase price.
  2. The record shall be open at all times for inspection by any justice of the peace, constable, deputy constable, sheriff, deputy sheriff, prosecuting attorney, or deputy prosecuting attorney.

History. Acts 1937, No. 318, § 1; Pope's Dig., § 3064; A.S.A. 1947, § 77-805.

2-20-206. Failure to keep gin record.

Any person or corporation owning or operating any gin within the State of Arkansas who shall fail to make and keep the record required in § 2-20-205 or who shall refuse or fail to permit its inspection by any of the officers mentioned in § 2-20-205 shall be deemed guilty of a misdemeanor. Upon conviction, an offender shall be fined in any sum not less than ten dollars ($10.00) nor more than one thousand dollars ($1,000).

History. Acts 1937, No. 318, § 2; Pope's Dig., § 3065; A.S.A. 1947, § 77-806.

2-20-207. Record of cotton weighed.

  1. All persons weighing cotton for the public in this state and receiving compensation therefor shall be required to keep a book or record of all cotton weighed by them, giving:
    1. The weight and marks of each bale;
    2. For whom weighed; and
    3. To whom sold where the purchaser is known to the weigher.
  2. The book or record shall be kept subject to inspection by the public.

History. Acts 1901, No. 77, § 1, p. 130; C. & M. Dig., § 2446; Pope's Dig., § 3068; A.S.A. 1947, § 77-811.

2-20-208. Failure to keep weighing record.

Any weigher who shall refuse to keep books or records or who shall, on demand of any person, fail or refuse to exhibit them shall be guilty of a misdemeanor. Upon conviction, an offender shall be fined in any sum not less than fifty dollars ($50.00) nor more than one hundred dollars ($100).

History. Acts 1901, No. 77, § 2, p. 130; C. & M. Dig., § 2446; Pope's Dig., § 3068; A.S.A. 1947, § 77-812.

Subchapter 3 — Labeling of Fruits and Vegetables for Interstate Shipment

Preambles. Acts 1947, No. 343 contained a preamble which read:

“Whereas, the neglect of proper labeling as to actual contents of packaged peaches, tomatoes, strawberries, Irish potatoes, and apples grown in Arkansas; and the attendant unfair and unethical practices of selling inferior products misrepresented as high grade perishables, has resulted in lower prices received by Arkansas producers than are received by growers in competing states, and a generally poor reputation for Arkansas grown products; and

“Whereas, reputable producers of these products in this state have suffered unfairly a consumer reaction against their products, the following act is proposed for their protection against such unfair marketing practices and in order that an improved and recognized quality of Arkansas packaged peaches, tomatoes, strawberries, Irish potatoes, and apples may be sold in competition with such products grown in other states … .”

Research References

Am. Jur. 3 Am. Jur. 2d, Agri., § 48 et seq.

C.J.S. 3 C.J.S., Agri., § 200 et seq.

2-20-301. Title.

This subchapter shall be known as the “Arkansas Fruit and Vegetable Labeling Act of 1947”, which is enacted in the exercise of the police powers of this state for the general welfare of the people of this state.

History. Acts 1947, No. 343, § 1; A.S.A. 1947, § 77-601.

2-20-302. Definitions.

As used in this subchapter, unless the context otherwise requires:

  1. “Closed package” means a barrel, box, basket, sack, carrier, or crate, of which all of the contents cannot readily be seen or inspected when the package is prepared for market;
  2. “Culls” means products which, on account of quality and condition, do not come within any of the above classifications or grades;
  3. “Persons” means individuals, partnerships, corporations, associations, or associations of two (2) or more individuals having a joint or common interest;
  4. “Places” means vessels, cars, and other vehicles, buildings, docks, railroad platforms, orchards, fields, and other premises where agricultural products are grown, kept, or handled;
  5. “Ripes” means products which are too ripe or soft, due to ripeness only, to ship, but which are satisfactory for short hauls and immediate consumption;
  6. “Ungraded” means products packaged which may be any combination of the United States standard grades or the grades established by this subchapter and, in addition, may include field run and all other grades with only soft and decayed fruit excluded; and
  7. “Utility” or “combination” means products packaged which may be any combination of the United States standard grades or grades established by this subchapter.

History. Acts 1947, No. 343, § 9; A.S.A. 1947, § 77-610.

2-20-303. Applicability.

    1. The provisions of this subchapter are limited to peaches, tomatoes, strawberries, Irish potatoes, and apples which are grown and produced in Arkansas.
      1. Standard grades for products covered by this subchapter shall be limited to United States grades and shall conform in all respects and be identical with the latest standards established by the United States Secretary of Agriculture.
      2. The State Plant Board shall have authority to prescribe and promulgate an Arkansas Commercial or Utility Grade and other and additional grades of peaches.
  1. Standard grades for peaches shall be the standard United States grades and the additional Arkansas grades designated as Utility or Combination, and Unclassified, and Ripes.

History. Acts 1947, No. 343, §§ 2A, 3; A.S.A. 1947, §§ 77-603, 77-604.

2-20-304. Transactions excepted.

This subchapter shall not apply to products:

  1. Sold directly by a producer to consumer;
  2. Sold by a producer in consumer packages or in bulk to retail trade exclusively in Arkansas; and
  3. In transit from point of origin to a place of processing, further grading, or conditioning within Arkansas.

History. Acts 1947, No. 343, § 7; A.S.A. 1947, § 77-608.

2-20-305. Penalties.

Each person who by himself or herself or through his or her agent or employee violates any provision of this subchapter shall be guilty of a Class C misdemeanor for each offense.

History. Acts 1947, No. 343, § 8; A.S.A. 1947, § 77-609; Acts 2005, No. 1994, § 403.

Amendments. The 2005 amendment deleted the subsection (a) designation; inserted “or herself”, “or her”, and “Class C”; and deleted former (b).

2-20-306. Administration.

The State Plant Board shall administer and enforce the provisions of this subchapter.

History. Acts 1947, No. 343, § 2; A.S.A. 1947, § 77-602.

2-20-307. Marking of closed containers.

  1. It shall be unlawful for any person to expose or offer for sale or have in his or her possession for sale or sell, transport, deliver, or consign any product covered by this subchapter in a closed package unless the container has been plainly marked or tagged in an indelible manner showing:
    1. The name and address of the producer, shipper, or other person responsible for packing the product;
    2. Contents in terms of net weight, measure, or numerical count and variety, state of origin, minimum size, etc., depending on the product; and
    3. The official grade of the product.
  2. If the product does not conform to an official grade, the package or tag shall be marked “UNGRADED” or “CULLS”, as the case may be.
  3. All markings shall be not less than one-fourth inch (¼") in height, except that “CULLS” must be marked in letters not less than one inch (1") in height.

History. Acts 1947, No. 343, § 4; A.S.A. 1947, § 77-605.

2-20-308. False representations.

  1. It shall be unlawful for any person to expose or offer for sale or sell, transport, deliver, or consign, or have in his or her possession for sale products covered by this subchapter packed in a closed package in which the label or exposed surface gives a false representation of the contents of the package.
  2. It shall be considered a false representation if the exposed surface does not reasonably represent the size, quality, and varietal characteristics of the remaining portions of the package.

History. Acts 1947, No. 343, § 5; A.S.A. 1947, § 77-606.

2-20-309. Used containers.

It shall be unlawful for any person to expose, or offer for sale or sell, transport, deliver, consign, or have in his or her possession for sale products covered by this subchapter which are packed in used containers unless the used containers are clean, sanitary, and otherwise adequate for use in the trade and all prior labelings or markings are erased or obliterated.

History. Acts 1947, No. 343, § 6; A.S.A. 1947, § 77-607.

2-20-310. Right of inspection.

For the purpose of carrying out the provisions and requirements of this subchapter, the State Plant Board and its inspectors shall have power to enter into or upon any place and to open any bundle, package, or container of agricultural products.

History. Acts 1947, No. 343, § 11; A.S.A. 1947, § 77-611.

Subchapter 4 — Soybean Promotion

Effective Dates. Acts 1971, No. 259, § 9: July 1, 1971.

Acts 1989, No. 102, § 4: July 1, 1989. Emergency clause provided: “It is hereby found and determined by the General Assembly that it is essential to the soybean promotion in Arkansas that the assessment on soybeans for research, promotion and market development be increased from one cent per bushel to two cents per bushel to provide necessary funds to fund the program; that this act is designed to provide such increase and in order to assure effective and efficient administration of the increase levy, it is essential that the act become effective at the beginning of the fiscal year, July 1, 1989. Therefore, an emergency is hereby declared to exist and this act being necessary for the preservation of the public peace, health, and safety shall be in full force and effect on and after July 1, 1989.”

Acts 2019, No. 910, § 6346(b): July 1, 2019. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that this act revises the duties of certain state entities; that this act establishes new departments of the state; that these revisions impact the expenses and operations of state government; and that the sections of this act other than the two uncodified sections of this act preceding the emergency clause titled ‘Funding and classification of cabinet-level department secretaries’ and ‘Transformation and Efficiencies Act transition team’ should become effective at the beginning of the fiscal year to allow for implementation of the new provisions at the beginning of the fiscal year. Therefore, an emergency is declared to exist, and Sections 1 through 6343 of this act being necessary for the preservation of the public peace, health, and safety shall become effective on July 1, 2019”.

2-20-401. Purpose.

The purpose of this subchapter is to promote the growth and development of the soybean industry in Arkansas by research, extension, promotion, and market development, thereby promoting the general welfare of the people of Arkansas.

History. Acts 1971, No. 259, § 1; A.S.A. 1947, § 77-2001; Acts 1991, No. 340, § 1.

2-20-402. Definitions.

As used in this subchapter, unless the context otherwise requires:

  1. “Board” means the Arkansas Soybean Promotion Board created under this subchapter;
  2. “Net market price” means:
    1. The sales price or value received by a producer for soybeans after adjustments for any premium or discount based on grading or quality factors, as determined by the secretary; or
    2. For soybeans pledged as collateral for a loan issued under any price support loan program administered by the Commodity Credit Corporation, the principal amount of the loan;
  3. “Secretary” means the United States Secretary of Agriculture;
  4. “Soybean Promotion, Research and Consumer Information Act” means the federal Soybean Promotion, Research and Consumer Information Act of 1990, Subtitle E of Title XIX, of the Food, Agriculture, Conservation and Trade Act of 1990, P.L. No. 101-624, as amended from time to time, and any order issued pursuant thereto by the secretary; and
  5. “United Soybean Board” means the United Soybean Board created by the Soybean Promotion, Research and Consumer Information Act.

History. Acts 1991, No. 340, § 2.

Publisher's Notes. Former § 2-20-402, concerning the applicability of the subchapter, was repealed by Acts 1991, No. 340, § 2. The former section was derived from Acts 1971, No. 259, § 5; A.S.A. 1947, § 77-2005.

U.S. Code. The Soybean Promotion, Research and Consumer Information Act, referred to in this section, is codified as 7 U.S.C. § 6301 et seq.

2-20-403. Penalties.

    1. Any first purchaser or other person required to pay an assessment under this subchapter who fails to pay any assessment when due shall forfeit a penalty of two percent (2%) of the assessment each month beginning the day following the date the assessment was due.
    2. The penalty shall be paid to the Arkansas Soybean Promotion Board or to its designee, the Secretary of the Department of Finance and Administration, and shall be disposed of in the same manner as funds derived from the payment of an assessment as provided in this subchapter.
  1. The board or its designee shall collect the penalty levied in this section, together with the delinquent assessment, by any and all of the following methods:
    1. Voluntary payment by the person liable;
    2. Legal proceedings instituted in a court of competent jurisdiction; or
    3. Injunctive relief to enjoin any person owing the assessment or penalty from operating his or her business or engaging in business as a buyer or seller of soybeans until the delinquent assessment or penalty is paid.
    1. Any person required to pay the assessment provided for in this subchapter who refuses to allow full inspection of the premises or any book, record, or other document relating to the liability of the person for the assessment imposed or who shall hinder or in any way delay or prevent the inspection shall be guilty of a violation.
    2. Upon conviction, an offender shall be punished by a fine not exceeding five hundred dollars ($500).

History. Acts 1971, No. 259, § 4; A.S.A. 1947, § 77-2004; Acts 1991, No. 340, § 3; 2005, No. 1994, § 14; 2019, No. 910, § 3272.

Amendments. The 2005 amendment substituted “violation” for “misdemeanor” in (c)(1).

The 2019 amendment substituted “Secretary of the Department of Finance and Administration” for “Director of the Department of Finance and Administration” in (a)(2).

2-20-404. Arkansas Soybean Promotion Board.

  1. The Arkansas Soybean Promotion Board is created. The board shall be composed of nine (9) producer members appointed by the Governor as follows:
      1. The Arkansas Farm Bureau Federation, Riceland Foods, Inc., Arkansas Soybean Association, and Agriculture Council of Arkansas shall submit the names of five (5) practical soybean producers to the Governor.
      2. The Governor shall appoint three (3) members from the list submitted by the Arkansas Farm Bureau Federation, and two (2) members from the list submitted by each of the other organizations named above to serve on the board.
      3. All of the nine (9) producer members of the board shall be practical producers of soybeans in the State of Arkansas and shall be nominated by their respective organizations;
    1. Each year, not less than thirty (30) days before the expiration of the terms of the current board members whose terms expire, the organizations named in subdivision (a)(1)(A) of this section shall submit to the Governor names of two (2) nominees for each position to be filled on the board from the respective organizations, and the Governor shall appoint the new members from each list of nominees; and
    2. Each member selected shall serve for a term of two (2) years and until his or her successor is duly selected as provided in this section.
  2. The members of the board shall meet and organize immediately after their appointment and shall elect a chair, a vice chair, and a secretary-treasurer from the membership of the board, whose duties shall be those customarily exercised by those officers or specifically designated by the board. The principal office of the board shall be located at the office of the Arkansas Farm Bureau Federation, in Little Rock.
  3. The board may establish rules for its own government and for the administration of the affairs of the board.
  4. The board is designated as the qualified state soybean board to represent the State of Arkansas under the Soybean Promotion, Research and Consumer Information Act of 1990.

History. Acts 1971, No. 259, § 2; 1979, No. 355, § 1; A.S.A. 1947, § 77-2002; Acts 1991, No. 340, § 4; 1999, No. 351, § 1.

Publisher's Notes. Acts 1971, No. 259, § 2 provided in part, that the initial members selected from the Arkansas Farm Bureau Federation would draw lots to determine their terms so that two of the members would serve for two-year terms and one would serve for a one-year term while the members from each of the other organizations would draw lots for terms so that one would serve for a one-year term and one would serve for a two-year term.

U.S. Code. The Soybean Promotion, Research and Consumer Information Act, referred to in (d), is codified as 7 U.S.C. § 6301 et seq.

Cross References. Division of Agriculture — Service on boards or commissions, § 6-64-106.

2-20-405. Arkansas Soybean Promotion Board — Powers.

  1. The Arkansas Soybean Promotion Board shall have power:
    1. To conduct plans, projects, or activities that are intended to strengthen the soybean industry's position in the marketplace;
    2. To report to the United Soybean Board the manner in which assessments are collected and the procedure utilized to ensure that assessments due are paid;
    3. To collect assessments paid on soybeans marketed within the state and to establish procedures for ensuring compliance with regard to the payment of such assessments; provided, that the Arkansas Soybean Promotion Board may designate the Secretary of the Department of Finance and Administration to collect assessments and ensure compliance with regard to the payment of such assessments, subject to such rules as may be promulgated by the Arkansas Soybean Promotion Board and as may be reasonably necessary to comply with the Soybean Promotion, Research and Consumer Information Act of 1990;
    4. To remit to the United Soybean Board any assessments paid under this subchapter and the Soybean Promotion, Research and Consumer Information Act of 1990, minus authorized credits and other required deductions, by the last day of the month following the month in which the assessment was paid, unless the United Soybean Board determines a different date for remittance of assessments;
    5. To pay refunds of assessments as required by the United States Secretary of Agriculture or as authorized by this subchapter and determined by the Arkansas Soybean Promotion Board;
    6. To establish escrow accounts to be held and administered as special fund accounts by the Treasurer of State, for the payment of refunds in such amounts and for such periods as required by the United States Secretary of Agriculture or as authorized by this subchapter and determined by the Arkansas Soybean Promotion Board; provided, that interest from such accounts shall accrue to the Arkansas Soybean Promotion Board to be used for authorized activities;
    7. To furnish the United Soybean Board with an annual report by a certified public accountant or an authorized state agency of all funds remitted to the United Soybean Board;
    8. To receive and certify petitions as provided in § 2-20-406(b)(3) and to conduct a referendum election or elections under this subchapter or the Soybean Promotion, Research and Consumer Information Act of 1990;
    9. To exempt by resolution a class of persons who purchase one thousand (1,000) or fewer bushels of soybeans in any calendar year from the assessment imposed by § 2-20-406(b)(1);
    10. To contract with the United Soybean Board or other persons to implement plans or projects under this subchapter and the Soybean Promotion, Research and Consumer Information Act of 1990; and
    11. To take such further action as may be necessary or appropriate to comply with and to administer this subchapter and the Soybean Promotion, Research and Consumer Information Act of 1990.
  2. The Arkansas Soybean Promotion Board shall not use funds collected or received under this subchapter or the Soybean Promotion, Research and Consumer Information Act of 1990:
    1. To fund plans or projects which make use of any unfair or deceptive acts or practices with respect to the quality, value, or use of any product that competes with soybeans or soybean products; or
    2. To influence any action or policy of the United States Government, any foreign or state government, or any political subdivision thereof; provided, however, that this subdivision (b)(2) shall not apply to:
      1. The communication to appropriate government officials of information relating to the conduct, implementation, or results of promotion, research, consumer information, and industry information;
      2. Any action designed to market soybeans or soybean products directly to a foreign government or a political subdivision thereof; or
      3. The development and recommendation of amendments to this subchapter or the Soybean Promotion, Research and Consumer Information Act of 1990.

History. Acts 1991, No. 340, § 5; 2019, No. 910, § 3273.

Publisher's Notes. Former § 2-20-405, concerning the holding and conduct of a referendum in each county by the Arkansas Soybean Promotion Board, was repealed by Acts 1989, No. 102, § 3. The former section was derived from Acts 1971, No. 259, § 3; 1979, No. 355, §§ 2, 3; A.S.A. 1947, § 77-2003.

Amendments. The 2019 amendment substituted “Secretary of the Department of Finance and Administration” for “Director of the Department of Finance and Administration” in (a)(3).

U.S. Code. The Soybean Promotion, Research and Consumer Information Act, referred to in this section, is codified as 7 U.S.C. § 6301 et seq.

2-20-406. Assessments on Arkansas-grown soybeans.

    1. Except as otherwise prescribed by regulations approved by the United States Secretary of Agriculture or the Arkansas Soybean Promotion Board, each person purchasing from, and making payment to, a producer for soybeans produced by such producer and marketed for commercial use, including, in any case in which soybeans are pledged as collateral for a loan issued under any federal price support loan program, the Commodity Credit Corporation, shall be a first purchaser and shall collect an assessment from the producer, and each producer shall pay such assessment to the first purchaser, at the applicable rate prescribed in this section. Each first purchaser shall remit such assessment to the Arkansas Soybean Promotion Board or to its designee, the Secretary of the Department of Finance and Administration. For the purpose of this section, purchases from a producer of soybeans or contracts with a producer for production of soybeans for livestock feed or any other application shall constitute marketing for commercial use.
    2. Any producer marketing processed soybeans or soybean products of that producer's own production to consumers, either directly or through retail or wholesale outlets, or for export purposes, shall remit the assessment as required by this section.
    1. Effective July 1, 1989, there is imposed and levied an assessment at the rate of two cents (2¢) per bushel on all soybeans grown within the State of Arkansas. The assessment shall be deducted from the amount paid the producer at the first point of sale, whether within or without the state, or at the point the soybeans enter into the United States Department of Agriculture loan program.
    2. Notwithstanding subdivision (b)(1) of this section, if an assessment is made under the Soybean Promotion, Research and Consumer Information Act of 1990 upon soybeans grown within the State of Arkansas, then, for so long as such assessment is effective, the assessment imposed and levied under this section shall be twenty-five hundredths of one percent (0.25%) of the net market price of all soybeans grown within the State of Arkansas. The assessment of twenty-five hundredths of one percent (0.25%) shall not be in addition to the national assessment, but is intended to correspond to the state credit for assessments paid to a qualified state soybean board under the Soybean Promotion, Research and Consumer Information Act of 1990. If an assessment under the Soybean Promotion, Research and Consumer Information Act of 1990 shall cease to be effective, then, for so long as no such assessment is made, the assessment imposed and levied under this section shall be as provided in subdivision (b)(1) of this section.
      1. So long as the assessment on soybeans provided for in this section is two cents (2¢) per bushel, the question of the levy of the two-cents-per-bushel assessment on soybeans may be referred to a vote of the soybean producers of the state by the filing of petitions with the Arkansas Soybean Promotion Board containing signatures of Arkansas soybean producers equal in number to fifteen percent (15%) of all soybean producers in the state.
      2. If the petitions are filed and at the referendum election a majority of the Arkansas soybean producers voting on the question vote against the levy of two cents (2¢) per bushel on soybeans, the assessment shall not thereafter be levied.
      3. Only those soybean producers who produce soybeans in Arkansas in the crop year immediately preceding the referendum election shall be eligible to vote in the election.
    1. The proceeds of the assessment shall be deposited with the Treasurer of State into a special fund to be established for the Arkansas Soybean Promotion Board; provided, that the Secretary of the Department of Finance and Administration may deduct not more than three percent (3%) to cover the cost of collections.
    2. Disbursement shall be made only upon motion duly passed by the Arkansas Soybean Promotion Board and presented to the Treasurer of State and only for the purposes prescribed in this subchapter.

History. Acts 1971, No. 259, § 3; 1979, No. 355, §§ 2, 3; A.S.A. 1947, § 77-2003; Acts 1989, No. 102, § 1; 1991, No. 340, § 6; 2019, No. 910, §§ 3274, 3275.

Amendments. The 2019 amendment substituted “Secretary of the Department of Finance and Administration” for “Director of the Department of Finance and Administration” in the second sentence of (a)(1); and substituted “secretary” for “director” in (c)(1).

U.S. Code. The Soybean Promotion, Research and Consumer Information Act, referred to in this section, is codified as 7 U.S.C. § 6301 et seq.

2-20-407. Reports — Books and records.

  1. Each person responsible for the collection and remittance of assessments under § 2-20-406(a) shall report to the Arkansas Soybean Promotion Board such information as may be required from time to time by rules approved by the United States Secretary of Agriculture or the board. Such information may include, but not be limited to, the following:
    1. The number of bushels of soybeans purchased, initially transferred, or which, in any other manner, is subject to the collection of the assessment;
    2. The amount of assessments remitted;
    3. The basis, if necessary, to show why the remittance is less than the applicable rate of the assessment per bushel of soybeans purchased multiplied by the number of bushels purchased; and
    4. The date any assessment was paid.
    1. Each person who is subject to this subchapter shall maintain and make available for inspection by the United States Department of Agriculture, the board or its designee, the Secretary of the Department of Finance and Administration, such books and records as are necessary to carry out the provisions of this subchapter and the rules issued thereunder, including such records as are necessary to verify any reports required. Such records shall be retained for at least two (2) years beyond the fiscal period of their applicability.
    2. Any producer who plants less than twenty-five (25) acres of soybeans annually shall not be required to maintain books or records under this section.
  2. All information obtained from books, records, or reports required to be filed or kept under this section shall be kept confidential by all persons, including employees and former employees of the board, all officers and employees and all former officers and employees of the Department of Finance and Administration, and by all officers and employees and all former officers and employees of contracting parties having access to such information, and shall not be available to board members or any other producers. Only those persons having a specific need for such information in order to effectively administer the provisions of this subchapter shall have access to such information. In addition, only such information so furnished or acquired as the United States Department of Agriculture or the board deems relevant shall be disclosed by them, and then only in a suit or administrative hearing brought at the direction, or upon the request, of the United States Department of Agriculture or the board, or to which the United States Department of Agriculture, any officer of the United States, the board, or the Secretary of the Department of Finance and Administration, is a party. This section shall not be deemed to prohibit:
    1. The issuance of general statements based upon the reports of the number of persons subject to this subchapter or statistical data collected therefrom, which statements do not identify the information furnished by any person; and
    2. The publication, by direction of the United States Secretary of Agriculture or the board, of the name of any person who has been adjudged to have violated this subchapter, together with a statement of the particular provisions of the subchapter violated by such person.

History. Acts 1971, No. 259, § 3; 1979, No. 355, §§ 2, 3; A.S.A. 1947, § 77-2003; Acts 1991, No. 340, § 7; 2019, No. 910, §§ 3276, 3277.

Amendments. The 2019 amendment substituted “United States Department of Agriculture, the board or its designee, the Secretary of the Department of Finance and Administration” for “secretary, the board or its designee, the Director of the Department of Finance and Administration” in the first sentence of (b)(1); and, in the third sentence of (c), substituted “United States Department of Agriculture” for “secretary” three times and substituted “Secretary of the Department of Finance and Administration” for “director”.

2-20-408. Refunds to producers.

  1. So long as the assessment on soybeans is as provided in § 2-20-406(b)(1), any soybean producer may request and receive a refund of such assessment, provided he or she makes a written application therefor with the Arkansas Soybean Promotion Board or its designee, the Secretary of the Department of Finance and Administration, within forty-five (45) days from the date of sale, supported by copies of sales slips signed by the purchaser, and provided further, that the application is filed before the annual accounting is made of the funds not later than July 1 each year.
  2. So long as the assessment on soybeans is as provided in § 2-20-406(b)(2), any soybean producer may request and receive a refund of such assessment to the extent provided by the Soybean Promotion, Research and Consumer Information Act of 1990. Such producer shall make written application therefor with the board or its designee, the secretary, within forty-five (45) days from the date the assessment was due from such producer, supported by copies of sales slips signed by the purchaser.

History. Acts 1971, No. 259, § 3; 1979, No. 355, §§ 2, 3; A.S.A. 1947, § 77-2003; Acts 1991, No. 340, § 8; 2019, No. 910, § 3278.

Amendments. The 2019 amendment substituted “Secretary of the Department of Finance and Administration” for “Director of the Department of Finance and Administration” in (a); and substituted “secretary” for “director” in the second sentence of (b).

U.S. Code. The Soybean Promotion, Research and Consumer Information Act, referred to in this section, is codified as 7 U.S.C. § 6301 et seq.

2-20-409. Promotion program — Use of funds.

  1. The Arkansas Soybean Promotion Board shall administer this subchapter to promote the soybean industry in Arkansas and shall be vested with the authority and discretion to determine administrative or program implementation and administrative or program expenditure allocations.
      1. The board is authorized to use the funds derived from the assessments imposed in this subchapter for research, extension, market development, and advertising designed to promote the soybean industry in Arkansas, including administration expenses.
      2. Use of these funds may be applied, as prescribed in this section, within or without Arkansas, including regional, national, and international applications.
    1. The funds may also be used to defray costs of referenda.

History. Acts 1971, No. 259, § 6; A.S.A. 1947, § 77-2006; Acts 1991, No. 340, § 9.

Subchapter 5 — Rice Promotion

A.C.R.C. Notes. On July 15, 1999, the Arkansas Supreme Court affirmed the chancery court decree which invalidated the buyer's asessment levied under § 2-20-511. Tim Leathers, Comm'r of Revenues, et al v. Gulf Rice Arkansas, Inc. and Gulf Pacific Rice Co., Inc., No. 98-737 (Ark. Sup. Ct. July 15, 1999). Accordingly, pursuant to Acts 1999, No. 16, § 10, the effective date of 1999, No. 16, is July 15, 1999.

Effective Dates. Acts 1985, No. 725, § 10: Aug. 1, 1985.

Acts 1999, No. 16, § 10: July 15, 1999. Emergency clause provided: “It is hereby found and determined by the Eighty-second General Assembly that the Arkansas Rice Research and Promotion Act of 1985 is currently subject to litigation; if the assessment levied under that act is ruled invalid substantial damage to the efforts of marketing Arkansas produced rice will result; that this act provides an assessment which is less subject to attack and will assure the continued funding for the program to promote the sale of Arkansas produced rice; and this act should therefore go into effect at the time the existing assessment is ruled invalid if that occurs. Therefore, an emergency is declared to exist and this act being immediately necessary for the preservation of the public peace, health and safety shall become effective on the date of its approval by the Governor. If the bill is neither approved nor vetoed by the Governor, it shall become effective on the expiration of the period of time during which the Governor may veto the bill. If the bill is vetoed by the Governor and the veto is overridden, it shall become effective on the date the last house overrides the veto. However if the occurrences just described occur prior to a court of competent jurisdiction invalidating the current assessment for Rice Research and Promotion, this act shall become effective at the time of that court decision unless the decision occurs later than ninety-one (91) days after adjournment of this regular session in which case this case will become effective ninety-one (91) days after adjournment of the session.”

Acts 2005, No. 852, § 3: Mar. 15, 2005. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that this act clarifies the use of funds from assessments on grown rice; and that this act is immediately necessary in order to avoid future controversies and to ensure the proper use of the funds. Therefore, an emergency is declared to exist and this act being immediately necessary for the preservation of the public peace, health, and safety shall become effective on: (1) The date of its approval by the Governor; (2) If the bill is neither approved nor vetoed by the Governor, the expiration of the period of time during which the Governor may veto the bill; or (3) If the bill is vetoed by the Governor and the veto is overridden, the date the last house overrides the veto.”

Acts 2019, No. 910, § 6346(b): July 1, 2019. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that this act revises the duties of certain state entities; that this act establishes new departments of the state; that these revisions impact the expenses and operations of state government; and that the sections of this act other than the two uncodified sections of this act preceding the emergency clause titled ‘Funding and classification of cabinet-level department secretaries’ and ‘Transformation and Efficiencies Act transition team’ should become effective at the beginning of the fiscal year to allow for implementation of the new provisions at the beginning of the fiscal year. Therefore, an emergency is declared to exist, and Sections 1 through 6343 of this act being necessary for the preservation of the public peace, health, and safety shall become effective on July 1, 2019”.

2-20-501. Title.

This subchapter shall be known and may be cited as the “Arkansas Rice Research and Promotion Act of 1999”.

History. Acts 1985, No. 725, § 1; A.S.A. 1947, § 77-2501; Acts 1999, No. 16, § 1.

2-20-502. Purpose.

The purpose of this subchapter is to promote the growth and development of the rice industry in Arkansas by research, extension, promotion, and market development, thereby promoting the general welfare of the people of Arkansas.

History. Acts 1985, No. 725, § 2; A.S.A. 1947, § 77-2502.

2-20-503. Applicability.

The provisions of this subchapter shall not apply to any person who purchases one thousand (1,000) or fewer bushels of rice in any calendar year.

History. Acts 1985, No. 725, § 6; A.S.A. 1947, § 77-2506.

2-20-504. Penalties.

    1. Any buyer who fails to file a report or pay any assessment within the required time set by the Secretary of the Department of Finance and Administration shall forfeit to the secretary a penalty of five percent (5%) of the assessment determined to be due plus one percent (1%) for each month of delay, or fraction of a month, after the first month after the report was required to be filed or the assessment became due.
    2. The penalty shall be paid to the secretary and shall be disposed of by him or her in the same manner as funds derived from the payment of the assessment imposed in this subchapter.
  1. The secretary shall collect the penalty levied in this subchapter, together with the delinquent assessment, by any or all of the following methods:
    1. Voluntary payment by the person liable;
    2. Legal proceedings instituted in a court of competent jurisdiction; or
    3. Injunctive relief to enjoin any buyer owing an assessment or penalty from operating his or her business or engaging in business as a buyer of rice until the delinquent assessment or penalty is paid.
    1. Any person required to pay the assessment provided for in this subchapter who refuses to allow full inspection of the premises or any book, record, or other document relating to the liability of the person for the assessment imposed in this subchapter or who shall hinder or in any way delay or prevent the inspection shall be guilty of a violation.
    2. Upon conviction, an offender shall be punished by a fine not exceeding five hundred dollars ($500).

History. Acts 1985, No. 725, § 5; A.S.A. 1947, § 77-2505; Acts 2005, No. 1994, § 15; 2019, No. 910, § 3279.

Amendments. The 2005 amendment added “or” in (b)(2); and substituted “violation” for “misdemeanor” in (c)(1).

The 2019 amendment substituted “Secretary of the Department of Finance and Administration” for “Director of the Department of Finance and Administration” in (a)(1); and substituted “secretary” for “director” throughout (a) and (b).

2-20-505. Arkansas Rice Research and Promotion Board.

  1. The Arkansas Rice Research and Promotion Board is created.
    1. The board shall be composed of nine (9) producer members to be appointed by the Governor as follows:
      1. Three (3) members shall represent the Arkansas Farm Bureau Federation;
      2. Two (2) members shall represent Riceland Foods, Inc.;
      3. One (1) member shall represent the Agricultural Council of Arkansas;
      4. One (1) member shall represent Producers Rice Mill, Inc.;
      5. One (1) member shall represent the Arkansas Rice Council; and
      6. One (1) member shall represent the independent mills of Arkansas.
    2. All of the nine (9) producer members of the board shall be practical producers of rice in the State of Arkansas and shall be nominated by their respective organizations.
    3. Each year, not less than thirty (30) days before the expiration of the terms of the current board members whose terms expire in that year, the organizations named in subdivision (b)(1) of this section shall submit to the Governor names of two (2) nominees for each position to be filled on the board from the respective organizations, and the Governor shall appoint the new members from each list of nominees.
    4. Each member selected shall serve for a term of two (2) years and until his or her successor is duly selected as provided in this section.
  2. The members of the board shall meet and organize immediately after their appointment and shall elect a chair, a vice chair, and a secretary-treasurer from the membership of the board, whose duties shall be those customarily exercised by those officers or specifically designated by the board. All officers shall serve for a period of one (1) year and until their successors are duly elected.
  3. The board may establish rules for its own government and for the administration of affairs of the board.
  4. The resident agent of the board shall be the executive vice president, Arkansas Farm Bureau Federation, or his or her designee.

History. Acts 1985, No. 725, § 3; A.S.A. 1947, § 77-2503; Acts 1999, No. 16, § 2.

Publisher's Notes. Acts 1985, No. 725, § 3, provided, in part, that within ten days after August 1, 1985, each of the organizations named in this section should submit the names of two practical rice producers to the Governor for each position to be appointed from nominations of the respective organization. The Governor was to appoint three members from the list submitted by the Arkansas Farm Bureau Federation, Inc., two members from the list submitted by Riceland Foods, Inc., one member representing Agricultural Council of Arkansas, one member representing Producers Rice Mill, Inc., one member representing Arkansas Rice Council, and one member representing the Independent Millers of Arkansas to serve on the board. The members selected from the Arkansas Farm Bureau Federation, Inc., were to draw lots to determine their terms so that two of them would serve for terms of two years and one would serve for a term of one year. The members selected from Riceland Foods, Inc., were to draw lots so that one would serve for a term of one year and one serve for a term of two years. The members from the other organizations were to draw lots for terms so that two would serve for terms of one year and two would serve for terms of two years.

Cross References. Division of Agriculture — Service on boards or commissions, § 6-64-106.

2-20-506. [Repealed.]

Publisher's Notes. Former § 2-20-506, concerning the referendum in each county, was repealed by Acts 1999, No. 16, § 3. The section was derived from the following sources: Acts 1985, No. 725, § 4; A.S.A. 1947, § 77-2504.

2-20-507. Assessments on grown rice.

  1. There are imposed and levied:
    1. An assessment at the rate of one and thirty-five hundredths cents (1.35¢) per bushel to be paid by the buyer at the first point of sale, whether within or without the state, on rice grown within the state or at the point the rice enters into the United States Department of Agriculture loan program; and
    2. An assessment at the rate of one and thirty-five hundredths cents (1.35¢) per bushel to be paid by the producer on all rice grown within this state.
  2. The assessment imposed and levied by this section shall be collected by the Secretary of the Department of Finance and Administration from the buyer of rice at the first point of sale or at the point the rice enters into the United States Department of Agriculture loan program.
    1. The proceeds of the assessment, less not more than three percent (3%) to cover the cost of collections, shall be deposited with the Treasurer of State in a special fund to be established for the Arkansas Rice Research and Promotion Board to the credit of the board.
    2. Disbursement shall be made only upon a motion duly passed by the board and presented to the Treasurer of State and only for a purpose prescribed in this subchapter.
    1. The funds derived from the assessment paid by a buyer at the first point of sale shall be used for:
      1. Market development and promotion;
      2. Basic administration expenses; and
      3. Defraying the costs of referenda that the board may refer to buyers of rice.
    2. The funds derived from the assessment paid by a producer shall be used for:
      1. Rice extension and rice research;
      2. Basic administration expenses; and
      3. Defraying the costs of referenda that the board may refer to producers of rice.
    3. Funds under subdivisions (d)(1) and (2) of this section may be applied within or without Arkansas, including regional, national, and international applications.

History. Acts 1985, No. 725, § 4; A.S.A. 1947, § 77-2504; Acts 1999, No. 16, § 4; 2005, No. 852, § 1; 2019, No. 910, § 3280.

Amendments. The 2005 amendment added (d).

The 2019 amendment substituted “Secretary of the Department of Finance and Administration” for “Director of the Department of Finance and Administration” in (b).

Research References

U. Ark. Little Rock L. Rev.

McCorkle, Constitutional Law — Arkansas' Nondelegation Doctrine: The Arkansas Supreme Court Defines a Limit on the Delegation of Legislative Authority to a Private Party, 23 U. Ark. Little Rock L. Rev. 297.

2-20-508. Records and other documentation.

    1. Every buyer shall keep a complete and accurate record of all rice handled by him or her.
    2. The records shall be in such form and contain other information as the Arkansas Rice Research and Promotion Board shall prescribe by rule.
    3. The record shall be preserved for a period of one (1) year and shall be offered for inspection at any time upon written demand by the Secretary of the Department of Finance and Administration or any duly authorized agent or representative of him or her.
    1. At such times as the secretary may require, every buyer shall submit reports or otherwise document any information deemed necessary for the efficient collection of the assessment imposed in this subchapter.
    2. The secretary shall have the power to cause any duly authorized agent or representative to enter upon the premises of any buyer of rice and examine or cause to be examined by the agent any books, papers, and records which deal in any way with respect to the payment of the assessment or enforcement of the provisions of this subchapter.

History. Acts 1985, No. 725, § 4; A.S.A. 1947, § 77-2504; Acts 2019, No. 315, § 19; 2019, No. 910, §§ 3281, 3282.

Amendments. The 2019 amendment by No. 315 deleted “or regulation” following “rule” in (a)(2).

The 2019 amendment by No. 910 substituted “Secretary of the Department of Finance and Administration” for “Director of the Department of Finance and Administration” in (a)(3); and substituted “secretary” for “director” in (b)(1) and (2).

2-20-509. [Repealed.]

Publisher's Notes. This section, concerning refunds to producers, was repealed by Acts 1999, No. 16, § 5. The section was derived from Acts 1985, No. 725, § 4; A.S.A. 1947, § 77-2504.

2-20-510. Promotion and research programs.

The Arkansas Rice Research and Promotion Board shall plan and conduct a program of research, extension, market development, and advertising designed to promote the rice industry in Arkansas.

History. Acts 1985, No. 725, § 7; A.S.A. 1947, § 77-2507; Acts 1999, No. 16, § 6; 2005, No. 852, § 2.

Amendments. The 2005 amendment deleted the subdivision (a) designation; and deleted former (b).

2-20-511. [Repealed.]

Publisher's Notes. This section, concerning a referendum for alternative assessment on grown rice, was repealed by Acts 2001, No. 1553, § 2. The section was derived from Acts 1995, No. 344, § 1.

Subchapter 6 — Wheat Promotion

Effective Dates. Acts 1985, No. 283, § 9: Aug. 1, 1985.

Acts 1995, No. 107, § 6: July 1, 1995. Emergency clause provided: “It is hereby found and determined by the General Assembly that the increase in the Wheat Promotion Board Assessment should apply to the current year's crop; and that unless this act goes into effect on July 1, 1995, a substantial portion of the crop will not be subject to the increased assessment levied by this act. Therefore, an emergency is hereby declared to exist and this act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after July 1, 1995.”

Acts 2019, No. 910, § 6346(b): July 1, 2019. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that this act revises the duties of certain state entities; that this act establishes new departments of the state; that these revisions impact the expenses and operations of state government; and that the sections of this act other than the two uncodified sections of this act preceding the emergency clause titled ‘Funding and classification of cabinet-level department secretaries’ and ‘Transformation and Efficiencies Act transition team’ should become effective at the beginning of the fiscal year to allow for implementation of the new provisions at the beginning of the fiscal year. Therefore, an emergency is declared to exist, and Sections 1 through 6343 of this act being necessary for the preservation of the public peace, health, and safety shall become effective on July 1, 2019”.

2-20-601. Purpose.

The purpose of this subchapter is to promote the growth and development of the wheat industry in Arkansas by research, extension, promotion, and market development, thereby promoting the general welfare of the people of Arkansas.

History. Acts 1985, No. 283, § 1; A.S.A. 1947, § 77-2401.

2-20-602. Applicability.

The provisions of this subchapter shall not apply to any person who purchases one thousand (1,000) or fewer bushels of wheat in any calendar year.

History. Acts 1985, No. 283, § 5; A.S.A. 1947, § 77-2405.

2-20-603. Penalties.

    1. Any buyer who fails to file a report or pay any assessment within the required time set by the Secretary of the Department of Finance and Administration shall forfeit to the secretary a penalty of five percent (5%) of the assessment determined to be due plus one percent (1%) for each month of delay, or fraction of a month, after the first month after the report was required to be filed or the assessment became due.
    2. The penalty shall be paid to the secretary and shall be disposed of by him or her in the same manner as funds derived from the payment of the assessment imposed in this subchapter.
  1. The secretary shall collect the penalty levied in this subchapter, together with the delinquent assessment, by any or all of the following methods:
    1. Voluntary payment by the person liable;
    2. Legal proceedings instituted in a court of competent jurisdiction; or
    3. Injunctive relief to enjoin any buyer owing an assessment or penalty from operating his or her business or engaging in business as a buyer of wheat until the delinquent assessment or penalty is paid.
    1. Any person required to pay the assessment provided for in this subchapter who refuses to allow full inspection of the premises or any book, record, or other document relating to the liability of the person for the assessment imposed in this subchapter or who shall hinder or in any way delay or prevent the inspection shall be guilty of a violation.
    2. Upon conviction, an offender shall be punished by a fine not exceeding five hundred dollars ($500).

History. Acts 1985, No. 283, § 4; A.S.A. 1947, § 77-2404; Acts 2005, No. 1994, § 16; 2019, No. 910, §§ 3283, 3284.

Amendments. The 2005 amendment substituted “violation” for “misdemeanor” in (c)(1).

The 2019 amendment substituted “Secretary of the Department of Finance and Administration” for “Director of the Department of Finance and Administration” in (a)(1); and substituted “secretary” for “director” throughout (a) and (b).

2-20-604. Arkansas Wheat Promotion Board.

  1. The Arkansas Wheat Promotion Board is created.
    1. The board shall be composed of nine (9) producer members to be appointed by the Governor as follows:
      1. Three (3) members shall represent the Arkansas Farm Bureau Federation;
      2. Two (2) members shall represent Riceland Foods, Inc.;
      3. Two (2) members shall represent the Arkansas Association of Wheat Growers; and
      4. Two (2) members shall represent the Agricultural Council of Arkansas.
    2. All of the nine (9) members of the board shall be practical producers of wheat in the State of Arkansas and shall be nominated by their respective organizations.
    3. Each year, not less than thirty (30) days before the expiration of the terms of the current board members whose terms expire in that year, the organizations named above shall submit to the Governor names of two (2) nominees for each position to be filled on the board from the respective organizations, and the Governor shall appoint the new members from each list of nominees.
    4. Each member selected shall serve for a term of two (2) years and until his or her successor is duly selected as provided in this section.
  2. The members of the board shall meet and organize immediately after their appointment and shall elect a chair, a vice chair, and a secretary-treasurer from the membership of the board, whose duties shall be those customarily exercised by those officers or specifically designated by the board.
  3. The board may establish rules for its own government and for the administration of affairs of the board.

History. Acts 1985, No. 283, § 2; A.S.A. 1947, § 77-2402; Acts 1999, No. 351, § 2.

Publisher's Notes. Acts 1985, No. 283, § 2, provided, in part:

“The Arkansas Wheat Promotion Board is created to be domiciled in Little Rock, Arkansas, 10720 Kanis Road, to be composed of nine producer members to be appointed by the Governor as herein provided.”

Acts 1985, No. 283, § 2, also provided, in part, that, within ten days after August 1, 1985, each of the organizations named in this section should submit the names of five practical wheat producers to the Governor and that he or she should appoint three members from the list submitted by the Arkansas Farm Bureau Federation, Inc., and two members from the lists submitted by each of the other organizations to serve on the board. The members selected from the Arkansas Farm Bureau Federation, Inc., were to draw lots to determine their terms so that two of them would serve for terms of two years and one would serve for a term of one year. The members from each of the other organizations would draw lots for terms so that one would serve for a term of one year and one would serve for a term of two years.

2-20-605. Referendum in each county.

  1. The Arkansas Wheat Promotion Board shall appoint three (3) wheat producers from each county who will be responsible for holding a referendum in the county.
  2. The board will set the dates for the referendum.
  3. In all such referenda, in order to be eligible to vote, the producer must have produced wheat in the crop year immediately preceding the referendum.
  4. Voting shall be in United States Farm Service Agency offices under supervision of the three (3) producers appointed to hold the referendum.
  5. Ballots will be furnished by the board.
  6. The results shall be certified not more than three (3) days after election, on forms furnished by the board, by registered mail to the board.
  7. The board shall be reimbursed from funds collected for costs of holding referenda.

History. Acts 1985, No. 283, § 3; A.S.A. 1947, § 77-2403.

2-20-606. Assessments on grown wheat.

    1. There is imposed and levied an assessment at the rate of one cent (1¢) per bushel on all wheat grown within the state.
    2. This assessment shall be deducted from the amount paid the producer at the first point of sale, whether within or without the state, or at the point the wheat enters into the United States Department of Agriculture loan program.
    3. This assessment may be extended for an indefinite period of time or until twenty percent (20%) of the producers ask for return of funds; then another referendum shall be called by the Arkansas Wheat Promotion Board in the manner set forth in this subchapter.
    1. The assessment imposed and levied by this section shall be collected by the Secretary of the Department of Finance and Administration from the buyer of wheat at the first point of sale or when the wheat enters the United States Department of Agriculture loan program.
      1. The proceeds of the assessment, less not more than three percent (3%) to cover cost of collections, shall be deposited with the Treasurer of State in a special fund to be established for the board to the credit of the board.
      2. Disbursement shall be made only upon motions duly passed by the board and presented to the Treasurer of State, and only for purposes prescribed in this subchapter.

History. Acts 1985, No. 283, § 3; A.S.A. 1947, § 77-2403; Acts 1995, No. 107, § 1; 2019, No. 910, § 3285.

A.C.R.C. Notes. As amended by Acts 1995, No. 107, § 1, subdivision (a)(1) ended: “from July 1, 1995.” Subdivision (a)(3) began: “The assessment imposed in this section shall be effective beginning July 1, 1995.”

Amendments. The 2019 amendment substituted “Secretary of the Department of Finance and Administration” for “Director of the Department of Finance and Administration” in (b)(1).

2-20-607. Records and other documentation.

    1. Every buyer shall keep a complete and accurate record of all wheat handled by him or her.
    2. The records shall be in such form and contain other information as the Arkansas Wheat Promotion Board shall prescribe, by rule.
    3. The record shall be preserved for a period of one (1) year and shall be offered for inspection at any time upon written demand by the Secretary of the Department of Finance and Administration or any duly authorized agent or representative of him or her.
    1. At such times as the secretary may require, every buyer shall submit reports or otherwise document any information deemed necessary for the efficient collection of the assessment imposed in this subchapter.
    2. The secretary shall have the power to cause any duly authorized agent or representative to enter upon the premises of any buyer of wheat and examine or cause to be examined by the agent any books, papers, and records which deal in any way with respect to the payment of the assessment or enforcement of the provisions of this subchapter.

History. Acts 1985, No. 283, § 3; A.S.A. 1947, § 77-2403; Acts 2019, No. 910, §§ 3286, 3287.

Amendments. The 2019 amendment substituted “Secretary of the Department of Finance and Administration” for “Director of the Department of Finance and Administration” in (a)(3); and substituted “secretary” for “director” in (b)(1) and (2).

2-20-608. Refunds to producers.

Any wheat producer may request and receive a refund of the amount deducted from the sale of his or her wheat if:

  1. He or she makes a written application with the Secretary of the Department of Finance and Administration within forty-five (45) days from the date of sale, supported by copies of sales slips signed by the purchaser; and
  2. The application is filed before the annual accounting is made of the funds not later than July 1 each year.

History. Acts 1985, No. 283, § 3; A.S.A. 1947, § 77-2403; Acts 2019, No. 910, § 3288.

Amendments. The 2019 amendment substituted “Secretary of the Department of Finance and Administration” for “Director of the Department of Finance and Administration” in (1).

2-20-609. Promotion program — Use of funds.

  1. The Arkansas Wheat Promotion Board shall plan and conduct a program of research, extension, market development, and advertising designed to promote the wheat industry in Arkansas.
      1. The board is authorized to use the funds derived from the assessments imposed in this subchapter for these purposes, including basic administration expenses of the plan.
      2. Use of these funds may be applied, as prescribed in this section, within or without the State of Arkansas, including regional, national, and international applications.
    1. The funds may also be used to defray costs of referenda.

History. Acts 1985, No. 283, § 6; A.S.A. 1947, § 77-2406.

2-20-610. Resident agent.

The resident agent of the Arkansas Wheat Promotion Board shall be the executive vice president of Arkansas Farm Bureau Federation, or his or her designee.

History. Acts 1995, No. 107, § 2.

Subchapter 7 — Regulation of Ginseng

Effective Dates. Acts 1985, No. 774, § 6: July 3, 1985. Emergency clause provided: “It is hereby found and determined by the General Assembly that under federal law, the state must institute a program providing for the regulation of the harvesting and exportation of ginseng from the state or the federal government will prohibit all exportation of ginseng from the state; that in 1979, the General Assembly enacted legislation charging the State Forestry Commission with responsibility of regulating the harvesting and sale of ginseng; that it is now determined that it is more appropriate that such authority and responsibility be vested in the State Plant Board; that this act is designed to vest authority and responsibility regarding ginseng in the State Plant Board and that to assure the smooth, effective and efficient transfer of the authority from the Forestry Commission to the State Plant Board and to enable the State Plant Board to promulgate appropriate rules and regulations to carry out the purpose and intent of this act, it is desirable that this act be effective beginning July 1, 1985. Therefore, an emergency is hereby declared to exist and this act being necessary for the preservation of the public peace, health and safety shall be in full force and effect from and after its passage and approval.”

2-20-701. Authority to regulate.

Effective July 1, 1985, the State Plant Board shall have the authority and responsibility to regulate the harvesting, sale, artificial propagation, and exportation of Panax quinquefolius, referred to in this subchapter as “ginseng”.

History. Acts 1985, No. 774, § 1; A.S.A. 1947, § 77-140.

2-20-702. Rules.

  1. The State Plant Board is authorized and directed to promulgate appropriate rules to enable it to effectively and efficiently carry out its responsibilities under this subchapter.
  2. Rules shall include, but shall not be limited to:
    1. Requirement of annual certification and registration of ginseng dealers and exporters;
    2. Requirement that ginseng dealers and exporters maintain records of all their purchases and sales of ginseng;
    3. The establishment of a limited ginseng harvesting season designed to promote and assure the survival of wild American ginseng in the state;
    4. Requirement to obtain a permit or certificate from the board by any person desiring to artificially propagate ginseng and to provide for the inspection of cultivated ginseng and ginseng nurseries in the state; and
    5. A requirement that a certificate of legal taking be attached to all ginseng exported from the state.

History. Acts 1985, No. 774, § 2; A.S.A. 1947, § 77-141.

2-20-703. Research program.

The State Plant Board shall cause to be initiated and maintained such continuing research program concerning ginseng in Arkansas as it may deem necessary or appropriate to promote and assure the continued health and survival of wild American ginseng in the state.

History. Acts 1985, No. 774, § 3; A.S.A. 1947, § 77-142.

2-20-704. Dealer license — Fee.

  1. Each person or entity desiring to engage in business as a ginseng dealer in this state shall annually make application for and obtain a license to do so from the State Plant Board.
  2. The annual license fee for a ginseng dealer license shall be fifty dollars ($50.00), which shall accompany the application for the license.

History. Acts 1985, No. 774, § 4; A.S.A. 1947, § 77-143.

2-20-705. Artificial propagation fee.

  1. A fee of twenty-five dollars ($25.00) shall be assessed persons artificially propagating ginseng for sale.
  2. The fee will be assessed annually and will accompany the request for nursery certification.

History. Acts 1985, No. 774, § 4; A.S.A. 1947, § 77-143.

Subchapter 8 — Corn and Grain Sorghum Promotion

A.C.R.C. Notes. References to “this chapter” in subchapters 1-7 may not apply to this subchapter which was enacted subsequently.

Effective Dates. Acts 1997, No. 271, § 10: July 1, 1997.

Acts 2019, No. 910, § 6346(b): July 1, 2019. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that this act revises the duties of certain state entities; that this act establishes new departments of the state; that these revisions impact the expenses and operations of state government; and that the sections of this act other than the two uncodified sections of this act preceding the emergency clause titled ‘Funding and classification of cabinet-level department secretaries’ and ‘Transformation and Efficiencies Act transition team’ should become effective at the beginning of the fiscal year to allow for implementation of the new provisions at the beginning of the fiscal year. Therefore, an emergency is declared to exist, and Sections 1 through 6343 of this act being necessary for the preservation of the public peace, health, and safety shall become effective on July 1, 2019”.

2-20-801. Purpose.

The purpose of this subchapter is to promote the growth and development of the corn and grain sorghum industry in Arkansas by research, extension, promotion, and market development, thereby promoting the general welfare of the people of Arkansas.

History. Acts 1997, No. 271, § 1.

2-20-802. Penalties.

    1. Any buyer who fails to file a report or pay any assessment within the required time set by the Secretary of the Department of Finance and Administration shall forfeit to the secretary a penalty of five percent (5%) of the assessment determined to be due plus one percent (1%) for each month of delay, or fraction of a month, after the first month after the report was required to be filed or the assessment became due.
    2. The penalty shall be paid to the secretary and shall be disposed of by him or her in the same manner as funds derived from the payment of the assessment imposed in this subchapter.
  1. The secretary shall collect the penalty levied in this section, together with the delinquent assessment, by any or all of the following methods:
    1. Voluntary payment by the person liable;
    2. Legal proceedings instituted in a court of competent jurisdiction; or
    3. Injunctive relief to enjoin any buyer owing the assessment or penalty, or both, from operating his or her business or engaging in business as a buyer of corn or grain sorghum until the delinquent assessment or penalty, or both, is paid.
  2. Any person required to pay the assessment provided for in this subchapter who refuses to allow full inspection of the premises or any book, record, or other document relating to the liability of the person for the assessment imposed by this subchapter or who shall hinder or in any way delay or prevent the inspection shall be guilty of a violation and upon conviction shall be punished by a fine not exceeding five hundred dollars ($500).

History. Acts 1997, No. 271, § 4; 2005, No. 1994, § 17; 2019, No. 910, §§ 3289, 3290.

Amendments. The 2005 amendment substituted “or” for “and” in (b)(2); and substituted “violation” for “misdemeanor” in (c).

The 2019 amendment substituted “Secretary of the Department of Finance and Administration” for “Director of the Department of Finance and Administration” in (a)(1); and substituted “secretary” for “director” throughout (a) and (b).

2-20-803. Applicability of subchapter.

The provisions of this subchapter shall not apply to any person who purchases one thousand (1,000) or less bushels of corn or grain sorghum in any calendar year.

History. Acts 1997, No. 271, § 5.

2-20-804. Arkansas Corn and Grain Sorghum Promotion Board.

    1. The Arkansas Corn and Grain Sorghum Promotion Board is created and domiciled in Little Rock, Arkansas, 10720 Kanis Road, and is composed of seven (7) producer members appointed by the Governor as provided in this subsection.
    2. All of the seven (7) producer members of the board shall be practical producers of corn or grain sorghum in the State of Arkansas and shall be nominated by their respective organizations.
    3. Within ten (10) days following July 1, 1997, each of the following organizations, namely, the Arkansas Farm Bureau Federation, Riceland Foods, Inc., and the Agricultural Council of Arkansas, shall submit the names of five (5) practical corn or grain sorghum producers to the Governor, and he or she shall appoint three (3) members from the list submitted by the Arkansas Farm Bureau Federation, and two (2) members from the lists submitted by each of the other above-named organizations to serve on the board.
    4. The members selected as provided in this section from the Arkansas Farm Bureau Federation, shall draw lots to determine their terms so that two (2) of the members will serve for terms of two (2) years and one (1) shall serve for a term of one (1) year, and the members from each of the other organizations shall draw lots for terms so that one (1) shall serve for a term of one (1) year and one (1) shall serve for a term of two (2) years. Thereafter, each member selected shall serve for a term of two (2) years and until his or her successor is duly selected as provided in this section.
    5. Each year thereafter not less than thirty (30) days before the expiration of the terms of the current board members whose terms expire, the organizations named in subdivision (a)(3) of this section shall submit to the Governor names of two (2) nominees named for each position to be filled on the board from the respective organizations, and the Governor shall appoint from each list of nominees the new member or members.
    1. The members of the board shall meet and organize immediately after their appointment and shall elect a chair, a vice chair, and a secretary-treasurer from the membership of the board, whose duties shall be those customarily exercised by the officers or specifically designated by the board.
    2. The board may establish rules for its own government and for the administration of affairs of the board.
  1. The resident agent of the board shall be the executive vice president of the Arkansas Farm Bureau Federation, or his or her designee.

History. Acts 1997, No. 271, § 2.

2-20-805. Powers and duties — Assessments — Buyers' records.

    1. The Arkansas Corn and Grain Sorghum Promotion Board shall appoint three (3) corn or grain sorghum producers from each county who will be responsible for holding a referendum in the county.
    2. The board will set the dates for the referendum and prescribe procedures to be followed in conducting the referendum.
    3. Voting shall be in farm service agency offices under supervision of the three (3) producers appointed to hold the referendum.
    4. Ballots will be furnished by the board.
    5. The results shall be certified not more than three (3) days after election on forms furnished by the board by registered mail to the board.
    6. The board shall be reimbursed from funds collected for costs of holding the referendum.
    1. There is imposed and levied an assessment at the rate of one cent (1¢) per bushel on all corn and grain sorghum grown within the state.
    2. This assessment is to be deducted from the amount paid the producer at the first point of sale, whether within or without the state or at the point the corn or grain sorghum enters into the United States Department of Agriculture loan program. However, the assessment shall not be imposed unless and until:
      1. The question of its imposition has been submitted to and approved by sixty percent (60%) of the corn and grain sorghum producers who vote in the referendum to be called and held within nine (9) months following July 1, 1997; and
      2. A minimum of ten percent (10%) of the total corn and grain sorghum producers in this state as determined by latest available agricultural census data shall have voted.
    3. The corn and grain sorghum producers shall be notified by the board of the results of the referendum.
    4. The assessment imposed in this section shall be effective beginning July 1, 1998.
    5. This assessment may be extended for an indefinite period of time or until twenty percent (20%) of the producers shall petition the board to hold a referendum on whether the program should be continued, then another referendum shall be called by the board in the manner set forth in this section.
    6. In all such referenda, in order to be eligible to vote, the producer must have produced corn or grain sorghum in the crop year immediately preceding the referendum.
    1. The assessment imposed and levied by this section shall be collected by the Secretary of the Department of Finance and Administration from the buyer of corn or grain sorghum at the first point of sale or when the corn or grain sorghum enters the United States Department of Agriculture loan program.
    2. The proceeds of the assessment, less not more than three percent (3%) to cover the cost of collections, shall be deposited with the Treasurer of State in a special fund to be established for the board to the credit of the board. Disbursement from the special fund shall be made only upon a motion duly passed by the board and presented to the Treasurer of State and only for a purpose prescribed in this subchapter.
    1. Every buyer shall keep a complete and accurate record of all corn and grain sorghum handled by him or her.
    2. The records shall be in such form and contain other information as the board shall by rule prescribe.
    3. The record shall be preserved for a period of one (1) year and shall be offered for inspection at any time upon written demand by the secretary or any duly authorized agent or representative of the secretary.
    4. Every buyer, at such time or times as the secretary may require, shall submit reports or otherwise document any information deemed necessary for the efficient collection of the assessment imposed in this section.
    5. The secretary shall have the power to cause any duly authorized agent or representative to enter upon the premises of any buyer of corn or grain sorghum and examine or cause to be examined by the agent any book, paper, and record which deal in any way with respect to the payment of the assessment or enforcement of the provisions of this subchapter.

History. Acts 1997, No. 271, § 3; 2019, No. 910, §§ 3291, 3292.

Amendments. The 2019 amendment substituted “Secretary of the Department of Finance and Administration” for “Director of the Department of Finance and Administration” in (c)(1); and substituted “secretary” for “director” throughout (d)(3) through (d)(5).

2-20-806. Research and extension program.

    1. The Arkansas Corn and Grain Sorghum Promotion Board shall plan and conduct a program of research and extension designed to promote the corn and grain sorghum industry in Arkansas, and the board may use the funds derived from the assessments imposed in this subchapter for these purposes, including basic administration expenses of the plan.
    2. This program may include a program of market development as determined by the board.
    1. Use of these funds may be applied as prescribed in this subchapter within or without the State of Arkansas, including regional, national, and international applications.
    2. The funds may also be used to defray costs of referenda.

History. Acts 1997, No. 271, § 6.

Chapter 21 Nurseries

Publisher's Notes. Acts 1963, No. 118, § 2, provided that the provisions of the act, which amended numerous sections in this chapter, should not be construed as limiting the authority conferred upon the State Plant Board by § 2-16-201 et seq., but shall be construed as supplemental thereto.

Effective Dates. Acts 1919, No. 683, § 11: effective on passage. Emergency declared. Approved Apr. 3, 1919.

Research References

Am. Jur. 3 Am. Jur. 2d, Agri., § 51.

C.J.S. 3 C.J.S., Agri., § 87.

2-21-101. Title.

This chapter shall be known as the “Arkansas Nursery Fraud Act of 1919”.

History. Acts 1919, No. 683, § 1; C. & M. Dig., § 8002; Pope's Dig., § 12327; A.S.A. 1947, § 77-401.

2-21-102. Definitions.

As used in this chapter, unless the context otherwise requires:

  1. “Agent” means any person not selling nursery stock under the partial or full control of a nurseryman or of a dealer or other agent. This term shall also apply to any person engaged with a nurseryman, dealer, or agent in handling nursery stock on a cooperative basis;
  2. “Dealer” means any person, not a grower of nursery stock, who buys nursery stock for the purpose of reselling and reshipping independently of any control of a nursery;
  3. “Nursery” means any grounds or premises on or in which nursery stock is propagated and grown for sale, or any grounds or premises on or in which nursery stock is being fumigated, treated, packed, or stored;
  4. “Nurseryman” means the person who owns, leases, manages, or is in charge of a nursery;
  5. “Nursery stock” means all field-grown florist stock, trees, shrubs, vines, cuttings, grafts, scions, buds, fruitpits, and other seeds of fruit and ornamental trees and shrubs and other plants and plant products for propagation, except field, vegetable, and flower seeds; and
  6. “Person” means corporations, companies, societies, associations, partnerships, or any individual or combination of individuals. When construing or enforcing the provisions of this chapter, omission or failure of any officer, agent, servant, or other individual acting for or employed by any person, as defined within the scope of his or her employment or office, shall, in every case, be also deemed to be the act, omission, or failure of that person as well as that of the individual himself or herself.

History. Acts 1919, No. 683, § 2; C. & M. Dig., § 8003; Pope's Dig., § 12328; A.S.A. 1947, § 77-402.

Case Notes

Cited: Pledger v. Boyd, 304 Ark. 91, 799 S.W.2d 807 (1990).

2-21-103. Unlawful acts.

  1. Without first having qualified, obtained, and having in force a valid license from the State Plant Board to do so, it shall be unlawful for any person, firm, or corporation to:
    1. Engage in, conduct, or carry on the business of selling or dealing in any nursery stock or of importing into this state for sale or distribution any nursery stock;
    2. Act as agent, salesman, or solicitor for any nurseryman or dealer in nursery stock; or
    3. Solicit orders for the purchase of nursery stock.
  2. It is unlawful for any person to falsely represent that he or she is the agent, salesman, solicitor, or representative of any nurseryman or dealer in nursery stock.

History. Acts 1919, No. 683, § 4; C. & M. Dig., § 8005; Acts 1937, No. 203, § 1; Pope's Dig., § 12329; Acts 1963, No. 118, § 1; A.S.A. 1947, § 77-403.

2-21-104. Penalty.

Any person who shall violate any provisions or requirements of this chapter or of the rules made under authority of this chapter shall be guilty of a misdemeanor and, upon conviction, shall be punished by a fine of not less than fifteen dollars ($15.00) nor more than five hundred dollars ($500).

History. Acts 1919, No. 683, § 4; C. & M. Dig., § 8005; Acts 1937, No. 203, § 1; Pope's Dig., § 12329; Acts 1963, No. 118, § 1; A.S.A. 1947, § 77-403.

2-21-105. Prosecutions.

Prosecutions under this chapter shall be commenced by the prosecuting attorney upon evidence furnished by the Director of the State Plant Board.

History. Acts 1919, No. 683, § 9; C. & M. Dig., § 8010; Pope's Dig., § 12331; A.S.A. 1947, § 77-405.

2-21-106. Rules.

The State Plant Board is authorized to make such reasonable rules as it may deem necessary for the enforcement of the provisions of this chapter and to prevent violations.

History. Acts 1919, No. 683, § 4; C. & M. Dig., § 8005; Acts 1937, No. 203, § 1; Pope's Dig., § 12329; Acts 1963, No. 118, § 1; A.S.A. 1947, § 77-403.

2-21-107. Issuance of licenses.

  1. All licenses shall be in the name of the person, firm, or corporation licensed and shall show the:
    1. Purposes for which issued; and
    2. Name and location of the nursery or place of business of the nurseryman or dealer licensed or represented by the agent, salesman, or solicitor licensed.
  2. No license shall be issued to any agent, salesman, or solicitor unless the nurseryman or dealer represented shall be licensed.

History. Acts 1919, No. 683, § 4; C. & M. Dig., § 8005; Acts 1937, No. 203, § 1; Pope's Dig., § 12329; Acts 1963, No. 118, § 1; A.S.A. 1947, § 77-403.

2-21-108. License fees.

  1. No license shall be issued until the applicant shall have qualified and paid the required fee.
    1. The annual license fee shall be ten dollars ($10.00) for either a nurseryman or dealer in nursery stock and ten dollars ($10.00) for each agent, salesman, or solicitor.
    2. Fees for nursery inspections under the Arkansas Plant Act of 1917, § 2-16-201 et seq., shall also cover the license fees for nurserymen required under this chapter but shall not be construed to cover the license fees for dealers, agents, salesmen, or solicitors.

History. Acts 1919, No. 683, § 4; C. & M. Dig., § 8005; Acts 1937, No. 203, § 1; Pope's Dig., § 12329; Acts 1963, No. 118, § 1; A.S.A. 1947, § 77-403.

2-21-109. Expiration of licenses.

  1. Licenses shall be issued on an annual basis.
  2. The date of expiration of the licenses shall be set by the State Plant Board in its rules and regulations made under this chapter.

History. Acts 1919, No. 683, § 4; C. & M. Dig., § 8005; Acts 1937, No. 203, § 1; Pope's Dig., § 12329; Acts 1963, No. 118, § 1; A.S.A. 1947, § 77-403.

2-21-110. Denial of license.

  1. The State Plant Board shall have authority to deny or refuse renewal of a license to any person when it is revealed by investigation or experience that the person does not have a record of financial or moral responsibility.
  2. Any person so denied a license may appeal to the circuit court.

History. Acts 1919, No. 683, § 4; C. & M. Dig., § 8005; Acts 1937, No. 203, § 1; Pope's Dig., § 12329; Acts 1963, No. 118, § 1; A.S.A. 1947, § 77-403.

Cross References. Licenses and permits, removal of disqualification for criminal offenses, § 17-1-103.

2-21-111. Invalidation of license.

  1. Any license issued in accordance with this chapter may be invalidated by the State Plant Board or its authorized representative, after a hearing, for the following reasons:
    1. Substitution by the licensee of varieties or kinds of nursery stock other than those ordered, except by the consent of the purchaser;
    2. Misrepresentations such as making false statements or promises for the purpose of making a sale;
    3. Repeated sales of poor quality, unthrifty, diseased, or insect-infested nursery stock;
    4. Failure to fulfill commitments covered by contracts or neglecting to make adjustments or replacements on nursery stock as by prior agreement; or
    5. Violation of any provisions of this chapter or the rules made under authority of it, or of the provisions of the Arkansas Plant Act of 1917, § 2-16-201 et seq., or of the rules made under authority of the Arkansas Plant Act of 1917, § 2-16-201 et seq.
  2. The licensee may appeal the board's decision within thirty (30) days to the circuit court.

History. Acts 1919, No. 683, § 4; C. & M. Dig., § 8005; Acts 1937, No. 203, § 1; Pope's Dig., § 12329; Acts 1963, No. 118, § 1; A.S.A. 1947, § 77-403.

2-21-112. Certification of experts.

Any person contracting to render expert advice or services regarding horticultural practices as part of the value received in the sale of nursery stock shall be required to:

  1. Furnish satisfactory evidence to the Director of the State Plant Board that he or she is qualified to give expert advice or perform the service; and
    1. Obtain a certificate to that effect, under signature of the director.
    2. A fee of one dollar ($1.00) shall be required for this certificate.

History. Acts 1919, No. 683, § 7; C. & M. Dig., § 8008; Pope's Dig., § 12330; A.S.A. 1947, § 77-404.

2-21-113. Disposition of moneys.

All moneys collected by the State Plant Board under this chapter shall be deposited and used in the same manner as moneys collected under § 2-16-210.

History. Acts 1919, No. 683, § 10; C. & M. Dig., § 8011; Pope's Dig., § 12332; A.S.A. 1947, § 77-406.

Chapter 22 Bees and Apiaries

Effective Dates. Acts 1977, No. 161, § 9: July 1, 1977.

2-22-101. Definitions.

As used in this chapter, unless the context otherwise requires:

  1. “Abandoned apiary” means an apiary to which the owner or operator fails to provide such reasonable and adequate attention to each hive during the year as to jeopardize the welfare of neighboring colonies;
  2. “Apiary” means any place where one (1) or more colonies of bees are kept;
  3. “Apiary equipment” means hives, supers, frames, veils, gloves, or any other equipment used in the handling and manipulation of bees, honey, wax, and hives;
  4. “Appliances” means any apparatus, tools, machines, or other devices used in the handling and manipulation of bees, honey, wax, and hives. The term includes containers of honey and wax which may be used in an apiary or in transporting bees and their products and apiary supplies;
  5. “Bee disease” means American and European foulbrood, sacbrood, bee paralysis, or any other disease or abnormal condition of the egg, larval, pupal, or adult stages of bees;
  6. “Bees” means any stage of the common honeybee, Apis mellifera;
  7. “Colony” means the bees in any hive including queens, workers, and drones;
  8. “Director” means the Director of the State Plant Board;
  9. “Hive” means a frame hive, box hive, box, barrel, logs, gum skep, or any other receptacle or container, natural or artificial, or any part thereof, which may be used as a domicile for bees;
  10. “Nucleus” means any division or portion of a hive that contains comb;
  11. “Package” means an indefinite number of bees, in a bee-tight container, with or without a queen, without comb;
  12. “Pollination” means the use of bees for the transfer of pollen in the production of agricultural crops;
  13. “Section head” means the head of the Apiary Section of the Division of Plant Industries; and
  14. “State Apiarist” means the Director of the Division of Plant Industries of the State Plant Board.

History. Acts 1977, No. 161, § 2; A.S.A. 1947, § 78-1726.

2-22-102. Penalty.

Any person violating the provisions of this chapter shall be guilty of a Class C misdemeanor and shall be punished accordingly.

History. Acts 1977, No. 161, § 6; A.S.A. 1947, § 78-1730.

Cross References. Class “C” misdemeanors, §§ 5-1-107, 5-4-201, 5-4-401.

2-22-103. Prohibited acts.

    1. No person shall sell, offer for sale, give away, or otherwise transfer ownership of any bees, colony of bees, or queen bees without first receiving from the State Plant Board a certificate of health issued not more than six (6) months before disposition.
    2. A copy of the certificate shall be issued by the seller or given to the purchaser or person receiving the colony at the time of delivery.
  1. It is unlawful for any person to give false information or incomplete information in any matter pertaining to this chapter or to resist, impede, or hinder the apiary inspector in the discharge of his or her duties.

History. Acts 1977, No. 161, § 4; 1979, No. 149, § 2; A.S.A. 1947, § 78-1728.

2-22-104. Administration.

The State Plant Board is vested with the authority to carry out the provisions of this chapter through the Director of the State Plant Board, State Apiarist, section head, and deputies.

History. Acts 1977, No. 161, § 1; A.S.A. 1947, § 78-1725.

Publisher's Notes. Acts 1975, No. 455, § 2, provided that, effective July 1, 1975, the State Apiary Board and all its powers, etc., were transferred to the Department of Commerce by a Type 2 transfer and that the only function of the board would be to serve in an advisory capacity to the department in matters relating to beekeeping.

Acts 1977, No. 161, § 1, provided, in part, that the State Apiary Board was abolished and that all its records, etc., were transferred to the State Plant Board for use in carrying out the provisions of this chapter.

2-22-105. Rules.

  1. The State Plant Board may promulgate such rules, not inconsistent with this chapter, as it shall deem necessary for the proper enforcement of this chapter.
  2. Rules shall be promulgated, issued, and enforced in accordance with the Arkansas Administrative Procedure Act, § 25-15-201 et seq.

History. Acts 1977, No. 161, § 6; A.S.A. 1947, § 78-1730.

2-22-106. Enforcement.

    1. For the enforcement of this chapter, the apiary inspector shall have, where any apiary is located or any bees, combs, or apiary appliances are kept, the authority to enter upon any private or public premises with right of access, ingress, and egress for the purpose of ascertaining the existence of the disease known as American foulbrood or European foulbrood or any other disease which is infectious or contagious and injurious to bees in their egg, larval, pupal, or adult stages.
      1. Before exercising that authority, the inspector must afford the beekeeper the opportunity to be present during the inspection by serving notice of the date and time of inspection at least five (5) days before the inspection.
      2. The five-day period may be abbreviated upon the mutual consent of the inspector and the beekeeper.
  1. Beekeepers aggrieved by the actions of an inspector may appeal the inspector's action to the State Plant Board at the board's next meeting.

History. Acts 1977, No. 161, § 4; 1979, No. 149, § 2; A.S.A. 1947, § 78-1728.

2-22-107. Inspections.

    1. Whenever an apiary has been inspected and found apparently free from American foulbrood or other dangerous, contagious, or infectious bee diseases, and all other provisions of this chapter have been complied with, a certificate of inspection shall be issued.
    2. The certificate of inspection shall be valid for a period of one (1) year following the date of its issuance.
    3. A valid certificate of inspection shall be deemed as a blanket permit to move the hives from place to place within the state.
  1. Should, upon inspection or laboratory analysis, any of the diseases described in § 2-22-106(a) be determined to exist in an apiary, it shall be the duty of the State Plant Board to cause the colony to be treated or disinfected or to destroy it, or cause it to be destroyed, by fire, including the hives, frames, honey, wax, and brood.
    1. If an abandoned apiary is found upon inspection to be diseased, the board shall cause it to be immediately destroyed by burning.
      1. An apiary may be considered abandoned only after reasonable attempts have been made to determine ownership.
      2. Attempts to determine ownership are to at least include the questioning of the owner, lessee, or renter of the land on which the apiary is discovered.
  2. After inspection of infected bees or fixtures or after handling diseased bees and before leaving the premises or proceeding to any other apiary, the apiary inspector shall take such measures as shall prevent the spread of the disease by infected material adhering to his or her person or clothing or to any tools or appliances used by him or her which have come in contact with infected materials.
  3. Upon request, additional inspections shall be made by the inspector of bees, colonies of bees, queen bees and their attendants, or hives, supers, or other equipment used in bee culture.

History. Acts 1977, No. 161, § 4; 1979, No. 149, § 2; A.S.A. 1947, § 78-1728.

2-22-108. Standards for inspectors.

The State Plant Board shall establish minimum competency standards for persons to be employed as apiary inspectors. These requirements are to include demonstrated ability to properly handle hives and bees in addition to proficient performance on a written test measuring knowledge pertinent to the job of inspector.

History. Acts 1977, No. 161, § 4; 1979, No. 149, § 2; A.S.A. 1947, § 78-1728.

2-22-109. Duties of persons engaged in beekeeping.

    1. It is the duty of all persons engaged in beekeeping to provide movable frames in all hives used by them to contain bees and to cause the bees in the hives to construct brood combs in the frames so that any of the frames may be removed from the hive without injuring other combs in the hive.
    2. Beekeepers shall change newly acquired bees from their natural habitat to hives as soon as possible, but in no case shall a period of more than twelve (12) months elapse between the date of acquiring new bees and transferring them to hives.
  1. Immediately upon detection of disease, anyone keeping bees shall treat and disinfect, or burn and bury in places where they shall remain undisturbed, combs and frames taken from diseased colonies, or, until salvaged, combs and frames shall be placed in tight receptacles so constructed that it is impossible for bees to gain access to combs or for honey or any other liquid to leak out where bees are able to gain access to it.
  2. Anyone exposing combs, honey, frames, empty hives, covers or bottom-boards, or tools, or other appliances contaminated by infected material from diseased colonies shall, upon conviction, be punished as provided in this chapter.

History. Acts 1977, No. 161, § 4; 1979, No. 149, § 2; A.S.A. 1947, § 78-1728.

2-22-110. Registration by beekeepers.

      1. A person owning, leasing, or possessing bees within ten (10) days after coming into ownership or possession of bees or before moving bees from outside the State of Arkansas, shall file with the State Plant Board an application for registration.
      2. The application shall set forth the exact location by legal description of the premises, together with the name of the owner or possessor of the apiary, the number of colonies of bees in each apiary owned by him or her or in his or her possession or under his or her control, together with such other information as may be required by the board.
    1. The beekeeper may register one (1) location for each ten (10) colonies for the first one thousand (1,000) colonies and may register one (1) location for each twenty (20) colonies thereafter.
    2. A new registration is required when any significant change occurs in the location or operation of the beekeeper.
    3. All applications for registration shall be approved or rejected by the board so as to effectuate compliance with this chapter or rules promulgated under this section.
    1. No person can place bees on property other than his or her own within three (3) miles of a previously registered area without the written permission of the registrant.
    2. Upon written complaint made to the board by any beekeeper or any landowner whose land is in the registered area that the registrant or any other person claiming prior bee pasturage rights is not properly covering the area so registered, then the board shall be authorized to permit the placing in such area of other bees or bee yards as, in its judgment, shall be sufficient.
      1. Nonresidents of this state who desire to locate their colonies of bees in Arkansas shall register their bees and the locations they desire as required in subsection (a) of this section.
      2. Registration shall be required annually.
    1. If a nonresident beekeeper fails to place his or her bees in an area registered by him or her during the registration period, the beekeeper shall forfeit his or her rights to that area and shall not be allowed to apply for that area until one (1) year after the forfeiture.

History. Acts 1977, No. 161, § 3; 1979, No. 149, § 1; A.S.A. 1947, § 78-1727.

2-22-111. Transporting of bees.

    1. All bees in used hives or other apiary equipment which may be brought into the state from other states or other countries must be accompanied by a certificate of health issued by the official inspector of the state or country where they had been located.
    2. The transportation of bees in used hives or other apiary equipment into this state without a certificate of health by any person or by common carriers is expressly prohibited.
  1. The certificate of health shall certify to the apparent freedom from foulbrood or any other contagious or infectious bee disease and shall be based on actual inspection of bees and material within ninety (90) days of the date of shipment.
    1. A person transporting bees within the state to a location not previously approved shall notify the State Plant Board of the action at least twenty (20) days before the move.
      1. Under emergency conditions such as fires, crop dusting, and natural disasters, the bees may be moved without prior notice if the board is notified within five (5) days of the move and informed of the circumstances necessitating the emergency move.
      2. No notification shall be required for the movement of disease-free bees between previously registered locations.

History. Acts 1977, No. 161, § 5; 1979, No. 149, § 3; A.S.A. 1947, § 78-1729.

2-22-112. Quarantine.

  1. All apiaries, bees, bee equipment, bee products, buildings, premises, and appliances where or on which American or European foulbrood is known to exist are declared to be under quarantine.
    1. The removal of any and all bees, queen bees, bee products, colonies, nuclei, combs and apiary appliances, and bee fixtures is prohibited except under such cases as the State Plant Board may permit or approve.
    2. The quarantines shall exist until the board shall determine and declare the premises or material is apparently free from American or European foulbrood.
  2. The imposed quarantine shall cease to be in effect if the board has not verified the existence of American or European foulbrood within thirty (30) days after appeal by the beekeeper.

History. Acts 1977, No. 161, § 4; 1979, No. 149, § 2; A.S.A. 1947, § 78-1728.

Chapter 23 Arbitration of Defective Seed Claims

Effective Dates. Acts 1991, No. 1024, §§ 3, 7: July 1, 1991. Emergency clause provided: “It is hereby found and determined by the General Assembly that it is essential to the effective administration of this act that the provisions hereof become effective on July 1, 1991; that without an emergency clause, this act might not become effective until after July 1, 1991. Therefore, an emergency is hereby declared to exist and this act being necessary for the preservation of the public peace, health and safety shall be in full force and effect on and after July 1, 1991.”

Acts 1997, No. 250, § 258: Feb. 24, 1997. Emergency clause provided: “It is hereby found and determined by the General Assembly that Act 1211 of 1995 established the procedure for all state boards and commissions to follow regarding reimbursement of expenses and stipends for board members; that this act amends various sections of the Arkansas Code which are in conflict with the Act 1211 of 1995; and that until this cleanup act becomes effective conflicting laws will exist. Therefore an emergency is declared to exist and this act being immediately necessary for the preservation of the public peace, health and safety shall become effective on the date of its approval by the Governor. If the bill is neither approved nor vetoed by the Governer [sic], it shall become effective on the expiration of the period of time during which the Governor may veto the bill. If the bill is vetoed by the Governor and the veto is overridden, it shall become effective on the date the last house overrides the veto.”

Research References

Am. Jur. 4 Am. Jur. 2d, Alt. Desp. Res., § 157.

Ark. L. Notes.

Looney, Bad Seeds Make Bad Law: Is the Seed Arbitration Act An Obstacle to Recovery in Defective Seed Cases in Arkansas?, 1994 Ark. L. Notes 53.

C.J.S. 6 C.J.S., Arbit., § 1 et seq.

2-23-101. Definitions.

As used in this subchapter:

  1. “Advertisement” means all representations other than those on the label written, recorded, or published and distributed by the labeler;
  2. “Agricultural seed” means the seeds of grass, forage, cereal, oil and fiber crops, and any other kinds of seed commonly recognized within this state as agricultural seeds and mixtures of such seed;
  3. “Arbitration committee” means the committee established by the Director of the State Plant Board under this subchapter to hear and make determinations in mandatory, nonbinding arbitration cases;
  4. “Buyer” means a person who purchases agricultural seeds;
  5. “Chairperson” means the person selected by the arbitration committee from among its members to preside over arbitration hearings;
  6. “Dealer” means any person, individual, partnership, or company who distributes agricultural seeds;
  7. “Label” means the display or displays of written, printed, or graphic matter upon or attached to the container of seed or as required by rules established under the Arkansas Plant Act of 1917, § 2-16-201 et seq.;
  8. “Labeler” means the person, firm, corporation, or the registered code number whose name appears on the label or container of seed;
  9. “Labeling” includes all labels, advertisements, and other written, printed, or graphic representations in any manner whatsoever pertaining to any seed, whether in bulk or in containers, and includes representations on invoices except for current, official publications of the United States Department of Agriculture and the United States Department of the Interior, state experiment stations, state agricultural colleges, and other similar federal or state institutions or agencies authorized by law to conduct research; and
  10. “Person” means an individual, firm, partnership, corporation, or company.

History. Acts 1991, No. 1024, § 1; 1999, No. 921, § 1; 2007, No. 827, §§ 3, 4.

Amendments. The 2007 amendment deleted former subdivisions (7) and (12).

2-23-102. Prerequisite to legal action — Notice — Arbitration committee.

    1. When any buyer believes that he or she has been damaged by the failure of agricultural seed to produce or perform as represented by the labeling of the agricultural seed, as a prerequisite to the buyer's right to maintain a legal action against the dealer or labeler and within a reasonable time after the alleged defect or violation becomes apparent, the buyer shall file a written notice of intent to seek arbitration to permit inspection of the crops or plants during the growing season.
    2. A meeting shall be scheduled by the Director of the State Plant Board between the buyer and labeler for the purpose of resolving the dispute, or if the dispute is not resolved, for officially filing the complaint.
    3. The buyer shall make a sworn complaint against the dealer or labeler alleging the damages sustained or to be sustained and file the complaint with the director.
    4. The buyer shall send a copy of the complaint to the labeler by United States registered mail.
    1. A filing fee of two hundred fifty dollars ($250) plus one dollar ($1.00) per acre filed on, not to exceed a total of seven hundred fifty dollars ($750), shall be paid to the director with each complaint filed, and complaints shall be filed on forms provided by the State Plant Board.
    2. This fee shall be deposited into the Plant Board Fund in the State Treasury and may be used by the director to offset expenses of the investigation.
  1. Within ten (10) days after receipt of a copy of the complaint, the labeler shall file with the director the labeler's answer to the complaint and send a copy of the answer to the buyer by United States registered mail.
    1. However, unless notice of this section is legibly printed or typed on the seed container or on a label affixed to the seed container or printed on the invoice covering bulk seed, the buyer shall not be required to comply with this section as a prerequisite to maintaining a legal action against the dealer or labeler.
    2. A notice in the following form, or some reasonably equivalent language, is sufficient:
    3. If language setting forth the requirement is not so placed on the seed package, analysis label, or invoice covering bulk seed shipments, the filing and serving of a complaint under this section are not required.

“Notice of Mandatory Arbitration

NOTICE: As a prerequisite to maintaining a legal action based upon the failure of seed to which this label is attached to produce as represented, a consumer shall file a sworn complaint with the Director of the State Plant Board within such time as to permit inspection of the crops or plants during the growing season.”

History. Acts 1991, No. 1024, § 2; 1999, No. 921, § 2.

Case Notes

Notice Requirement Mandatory.

Complaint to the plant board filed within ten days after defectiveness of seeds became apparent was a condition precedent to a legal action against the seed manufacturer and farmer's failure to comply with the mandatory notice requirements precluded his or her legal action for damages. Slusser v. Farm Serv., 359 Ark. 392, 198 S.W.3d 106 (2004).

2-23-103. Seed dealer or labeler may request investigation — Requirements.

    1. Any seed dealer or labeler against whom suit is brought in any state or federal court by a buyer who alleges that he or she has been damaged by the failure of seeds purchased from a seed dealer to perform as labeled, may request an investigation by the arbitration committee.
    2. A filing fee of two hundred fifty dollars ($250) plus one dollar ($1.00) per acre filed on, not to exceed a total of seven hundred fifty dollars ($750), shall be paid by the party.
  1. The Director of the State Plant Board shall refer the complaint and the answer to the complaint to the arbitration committee provided in § 2-23-104 for investigation, findings, and recommendations on the matters complained of.

History. Acts 1991, No. 1024, § 2; 1999, No. 921, § 3.

2-23-104. Arbitration committee — Members.

      1. The Director of the State Plant Board shall appoint an arbitration committee composed of six (6) members and six (6) alternate members with one (1) member and one (1) alternate to be appointed upon the recommendation of each of the following:
        1. The President of the Arkansas Seed Growers Association;
        2. The President of the Arkansas Seed Dealers Association;
        3. The President of the Arkansas Farm Bureau Federation; and
        4. The President of the Agricultural Council of Arkansas.
      2. Terms for seed grower, seed dealer, farm bureau, and agricultural council members shall be for four (4) years.
    1. The members and alternates shall be confirmed by the Governor.
      1. The Director of the University of Arkansas Agricultural Experiment Station, or his or her designee or alternate, and the Director of the University of Arkansas Cooperative Extension Service, or his or her designee or alternate, shall serve as ex officio members.
      2. Ex officio members shall serve until replaced by their organizations.
    2. Recommending organizations shall submit member recommendations not less than thirty (30) days before the expiration day of an expiring term.
    3. Each alternate member shall serve only in the absence of the member for whom he or she is an alternate.
    4. Members of the committee may receive expense reimbursement in accordance with § 25-16-901 et seq.
    1. The committee shall elect a chairperson from its membership and the Director of the State Plant Board, or his or her designee, shall serve as secretary of the committee and shall not vote.
    2. It is the duty of the chairperson to conduct all meetings and deliberations held by the committee and to direct all other activities of the committee.
    3. It is the duty of the secretary to keep accurate and correct records on all meetings and deliberations and perform other duties for the committee as directed by the chairperson.

History. Acts 1991, No. 1024, § 2; 1997, No. 250, § 5; 1999, No. 921, § 4.

Publisher's Notes. Acts 1991, No. 1024, § 2, provided, in part, that the original committee shall be appointed so that the Seed Growers Association member shall serve one (1) year, the Seed Dealers Association member shall serve two (2) years and the Farm Bureau member shall serve three (3) years.

2-23-105. Committee purpose.

  1. The purpose of the arbitration committee is to assist agricultural seed buyers and agricultural seed dealers or labelers in determining the facts relating to matters alleged in complaints made by buyers against dealers or labelers. The committee may make rules to carry out the purposes of this act.
  2. The committee may recommend money damages be paid the buyer as a result of alleged failure of seeds to produce as represented by the labeling of the seed and may also recommend that the seed dealer or labeler reimburse the buyer for the amount of the filing fee paid by the buyer.

History. Acts 1991, No. 1024, § 2; 1999, No. 921, § 5.

Meaning of “this act”. The phrase “this act” in subsection (a) of this section refers to Acts 1999, No. 921, which amended various provisions of this section and §§ 2-23-1012-23-104, 2-23-107, and 2-23-108.

2-23-106. Committee — Meetings — Informal hearing.

  1. The arbitration committee may be called into session by the Director of the State Plant Board or upon the direction of the chairperson to consider the matters referred to it by the board.
  2. If the committee determines that an informal hearing should be conducted to allow each party an opportunity to present his or her respective side of the dispute, attorneys may be present at the hearing to confer with their clients, but may not participate directly in the proceedings unless requested to do so by the chairperson of the arbitration committee.

History. Acts 1991, No. 1024, § 2.

2-23-107. Committee — Investigation and report — Findings as evidence.

  1. When the Director of the State Plant Board refers to the arbitration committee any complaint made by a buyer against a dealer or labeler, the committee shall make a full and complete investigation of the matters complained of and at the conclusion of the investigation, report through its secretary the findings and recommendations to the buyer and to the labeler by United States registered mail.
    1. The report of arbitration shall be binding upon all parties to the extent, if any, that they have so agreed:
      1. In any contract governing the sale of the seed; or
      2. Before the official filing of arbitration.
    2. In the absence of an agreement to be bound by arbitration, a buyer may commence legal proceedings against a seller or assert such claim, as a counterclaim or defense in any action brought by the seller, at any time after the receipt of the report of arbitration.
      1. In litigation involving a complaint which has been the subject of arbitration under this section, any party may introduce the report of arbitration as evidence of the facts found in the report, and the court may give such weight to the committee's findings and conclusions of law and recommendations as to damages and costs as the court may see fit based upon all the evidence before the court.
      2. The court may also take into account any findings of the committee with respect to the failure of any party to cooperate in the arbitration proceedings, including any finding as to the effect of delay in filing the arbitration claim upon the committee's ability to determine the facts of the case.

History. Acts 1991, No. 1024, § 2; 1999, No. 921, § 6.

Case Notes

Failure to Timely File Claim.

Complaint to the plant board filed within ten days after defectiveness of seeds became apparent was a condition precedent to legal action against the seed manufacturer and farmer's failure to comply with the mandatory notice requirements precluded his or her legal action for damages; farmer knew as early as July 1998 that the seeds were not germinating properly but did not file a complaint with the board until more than five months later. Slusser v. Farm Serv., 359 Ark. 392, 198 S.W.3d 106 (2004).

2-23-108. Committee — Investigative powers.

  1. In conducting its investigation, the arbitration committee may:
    1. Examine the buyer on his or her use of the seed of which he or she complains and the dealer or labeler on his or her packaging, labeling, and selling operation of the seed alleged to be faulty;
    2. Grow to production a representative sample of the alleged faulty seed through the facilities of the state, under the supervision of the Director of the State Plant Board, when such action is deemed by the committee to be necessary;
    3. Hold informal hearings at a time and place directed by the chairperson of the committee upon reasonable notice to the buyer and the dealer or labeler; and
    4. Seek evaluations from authorities in allied disciplines, when deemed necessary.
  2. An investigation made by less than the whole membership of the committee shall be by authority of a written directive by the chairperson, and the investigation shall be summarized in writing and considered by the committee in reporting its findings and making its recommendations.

History. Acts 1991, No. 1024, § 2; 1999, No. 921, § 7.

2-23-109. Committee records.

The committee shall keep a record of its activities and reports on file in the State Plant Board.

History. Acts 1991, No. 1024, § 2.

2-23-110. Notice.

The consumer and seedsman shall give written notice to the department of the acceptance or rejection of the arbitration committee's recommended terms of settlement within thirty (30) days from the date such recommended terms of settlement are issued by the arbitration committee.

History. Acts 1991, No. 1024, § 2.

Chapter 24 Arkansas Grain Dealers Act

Effective Dates. Acts 2015, No. 601, § 2: Mar. 23, 2015. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that agriculture is an essential part of Arkansas's economy; that protecting Arkansas farmers is in the best interests of the state; that grain dealers must be regulated to protect Arkansas farmers and the state's economy from the devastating financial impact that the failure of one (1) or more of these grain dealers could have on the farmers' financial well-being and the state's economy; and that this act is immediately necessary because failure to adequately regulate these grain dealers could have immediate and far-reaching effects on Arkansas's economy and the financial stability of the state's agriculture community. Therefore, an emergency is declared to exist, and this act being immediately necessary for the preservation of the public peace, health, and safety shall become effective on: (1) The date of its approval by the Governor; (2) If the bill is neither approved nor vetoed by the Governor, the expiration of the period of time during which the Governor may veto the bill; or (3) If the bill is vetoed by the Governor and the veto is overridden, the date the last house overrides the veto.”

2-24-101. Title.

This chapter shall be known and may be cited as the “Arkansas Grain Dealers Act”.

History. Acts 2015, No. 601, § 1.

2-24-102. Definitions.

As used in this chapter:

    1. “Dealer” means a person that operates as a grain buyer.
    2. “Dealer” does not include a person licensed under the following:
      1. The United States Warehouse Act, 7 U.S.C. § 241 et seq.; or
      2. The Arkansas Public Grain Warehouse Law, § 2-17-201 et seq.;
  1. “End user” means a person that:
    1. Is the ultimate user of the grain; or
    2. Offers the grain for sale to the general public as a retail sale;
  2. “Facility” means one (1) or more locations in the state that are operated by a grain dealer;
  3. “Grain” means corn, wheat, oats, barley, rye, rice, sorghum, soybeans, oil seeds, and other agricultural commodities approved by the State Plant Board; and
  4. “Person” means an individual, partnership, corporation, association, or other legal form of business.

History. Acts 2015, No. 601, § 1.

2-24-103. Administration — Exemption.

  1. The State Plant Board shall:
    1. Administer this chapter; and
    2. Create a publicly accessible database of:
      1. Dealers licensed under this chapter;
      2. Persons licensed under the United States Warehouse Act, 7 U.S.C. § 241 et seq.; and
      3. Persons licensed under the Arkansas Public Grain Warehouse Law, § 2-17-201 et seq.
  2. An end user is exempt from the requirements of this chapter.

History. Acts 2015, No. 601, § 1.

2-24-104. License required.

    1. A dealer shall obtain a license from the State Plant Board under this chapter before entering into a contract for or purchasing grain.
    2. A dealer that exists as of the effective date of this chapter has sixty (60) days from March 23, 2015 to obtain a license.
    1. A license is valid from July 1 of the year of application until June 30 of the following year.
    2. However, an initial license received between January 1 and June 30 is valid only until June 30 of the year in which the license was obtained.

History. Acts 2015, No. 601, § 1.

2-24-105. Applications for licenses — Renewal.

  1. The State Plant Board shall issue a license to a dealer that satisfies the requirements of this chapter and the rules promulgated by the board.
  2. A dealer seeking licensure under this chapter shall submit an application to the board on the form prescribed by the board.
    1. A dealer shall renew its license annually as long as the dealer is operating in the state.
    2. A dealer shall apply for renewal of a license issued under this chapter by submitting an application for renewal on the form prescribed by the board.
    3. An application for renewal shall be received by the board on or before June 30.
    4. The board shall renew the license of a dealer that satisfies the requirements of this chapter and the rules promulgated by the board.
  3. The board may establish nominal application and renewal fees to offset the costs of administering this chapter.
  4. If a dealer does not renew its license by the deadline stated in subsection (c) of this section, then the dealer's license is terminated, and it shall not be reinstated until the dealer submits an application for renewal and meets all other requirements of this chapter and the rules promulgated by the board.

History. Acts 2015, No. 601, § 1.

2-24-106. Bond requirement.

The State Plant Board may require a surety bond, financial reserve, or other evidence of creditworthiness for dealers.

History. Acts 2015, No. 601, § 1.

2-24-107. Reporting — Audits and inspections.

  1. A dealer shall report to the State Plant Board annually on the form prescribed by the board.
  2. The board may audit and inspect each dealer annually and as necessary.

History. Acts 2015, No. 601, § 1.

2-24-108. Violations — Penalties.

  1. It is a violation of this chapter to:
    1. Operate as a dealer without a license issued under this chapter;
    2. Knowingly violate this chapter; or
    3. Knowingly refuse to allow inspection of a dealer's premises, books, accounts, or other records during an audit by the State Plant Board under this chapter.
  2. A person that commits a violation under subsection (a) of this section is guilty of a Class D felony.
  3. A person that negligently violates this chapter upon conviction is guilty of a Class A misdemeanor.
    1. A person who violates this chapter or a rule promulgated under this chapter upon conviction is guilty of a violation and shall be punished by a fine of not more than one hundred dollars ($100).
      1. In addition to or in lieu of any other lawful disciplinary action, the board may assess a civil penalty of not more than one thousand dollars ($1,000) for each violation of a statute, rule, or order enforceable by the board under this chapter.
        1. The board shall establish by rule a schedule designating the minimum and maximum civil penalty that may be assessed under this subsection for violation of each statute, rule, or order over which it has regulatory control under this chapter.
        2. The board may promulgate any other rules necessary to carry out the intent of this subsection.
      2. If a civil penalty lawfully assessed under subdivision (d)(2)(A) of this section is not paid, the civil penalty is recoverable in the name of the state by the Attorney General in Pulaski County Circuit Court or in the circuit court of the county in which the violation occurred.
      3. A civil penalty paid or recovered under this subsection shall be deposited into the State Treasury to be credited to the Miscellaneous Agencies Fund Account.

History. Acts 2015, No. 601, § 1.

2-24-109. Suspension of license.

    1. The State Plant Board may temporarily suspend a dealer's license without a hearing if the board determines that the public health, safety, or welfare requires immediate action.
    2. If the board temporarily suspends a dealer's license under subdivision (a)(1) of this section, the board shall notify the dealer immediately by certified mail of the temporary suspension and the date, time, and location of the hearing to be held under subdivision (a)(3) of this section.
    3. If a dealer's license is temporarily suspended under subdivision (a)(1) of this section, a hearing on the suspension of the dealer's license shall be held within ten (10) days of the temporary suspension of the dealer's license.
    1. Based on the information contained in the complaint submitted against a dealer, the board may suspend the license of the dealer without a hearing five (5) days after sending written notice by certified mail, nonrestricted delivery, to the dealer if the dealer:
      1. Does not have the required bond on file with the board; or
      2. Refuses to submit to an audit or inspection by the board under this chapter.
    2. A suspension of a dealer's license under subdivision (b)(1) of this section shall not exceed sixty (60) days without a hearing.
  1. A hearing under this section and an appeal of the board's decision to suspend a dealer's license under this section is governed by the Arkansas Administrative Procedure Act, § 25-15-201 et seq.

History. Acts 2015, No. 601, § 1.

2-24-110. Receivership.

  1. Following the suspension of a dealer's license under this chapter, the State Plant Board may file a verified petition in a court of competent jurisdiction requesting the appointment of a receiver to take custody of the assets of the dealer and provide for the disposition of the assets under the supervision of the court.
  2. A petition for the appointment of a receiver shall be filed in the county in which the dealer is located.
  3. Upon receiving a petition for the appointment of a receiver under this section, a court may issue any temporary orders necessary to preserve or protect the assets in receivership, the value of the assets in receivership, and the rights of the dealer's creditors until a plan of disposition is approved.
  4. The board may be appointed as receiver in an action brought under this section.

History. Acts 2015, No. 601, § 1.

2-24-111. Cease and desist.

The State Plant Board may order a dealer to cease and desist any activity that is in violation of this chapter.

History. Acts 2015, No. 601, § 1.

2-24-112. Slow-pay hotline.

  1. The State Plant Board shall establish a slow-pay hotline for a person to notify the board that a dealer is more than thirty (30) days late on the dealer's contractual obligation for payment of grain to the person.
  2. A dealer shall provide notice to each person from which the dealer purchases grain on the availability of the slow-pay hotline established under this section.

History. Acts 2015, No. 601, § 1.

2-24-113. Recordkeeping.

  1. The State Plant Board shall promulgate rules concerning the records a dealer is required to maintain for the proper administration of this chapter.
  2. A dealer shall:
    1. Maintain the records required by the board under this section for five (5) years; and
    2. Make the records available to the board on request.

History. Acts 2015, No. 601, § 1.

2-24-114. Rules.

The State Plant Board shall promulgate rules to implement and administer this chapter.

History. Acts 2015, No. 601, § 1.

Chapter 25 Arkansas Grain Grading Act

2-25-101. Title.

This chapter shall be known and may be cited as the “Arkansas Grain Grading Act”.

History. Acts 2019, No. 795, § 1.

2-25-102. Definitions.

As used in this chapter:

  1. “Grain” means corn, soybeans, and wheat;
  2. “Grain dealer” means a person or entity that receives grain from a grain producer and sells or distributes grain commercially;
  3. “Official grading agency” means an agency or laboratory authorized by the United States Agricultural Marketing Service to provide official inspection and weighing services on behalf of the United States Agricultural Marketing Service; and
  4. “Producer” means a farmer who grows grain and delivers grain to a grain dealer.

History. Acts 2019, No. 795, § 1.

2-25-103. Administration.

  1. The Department of Agriculture shall adopt rules governing the standards for sampling and grading grain that are consistent with the standards for sampling and grading grain developed by the United States Department of Agriculture.
  2. The Department of Agriculture shall certify:
    1. Grain dealers that employ grain samplers and graders; and
    2. Courses of instruction in the methods of sampling and grading grain.
  3. The Department of Agriculture shall issue a certificate to a grain dealer who conducts a course of instruction for sampling and grading grain that is satisfactory to the Department of Agriculture.
  4. A grain dealer who issues grades for grain shall:
    1. Sample and grade each load of grain delivered by a producer within twenty-four (24) hours of the time the grain is delivered to the grain dealer; and
    2. Retain each sample of grain received from a producer that is subject to excessive deductions for grain damage or foreign material.
    1. The Department of Agriculture shall promulgate a rule regarding the level of deduction that is excessive for each type of grain.
    2. The rule shall:
      1. Include the deductions for grain damage or foreign material;
      2. Be based upon the numerical grades determined for each type of grain by the United States Department of Agriculture; and
      3. Include a provision allowing for variance in the moisture level of a sample, which shall not subject the sample to reinspection.
  5. Samples of grain that are subject to excessive deductions shall be retained in separate containers for two (2) days from the date the sample was graded.

History. Acts 2019, No. 795, § 1.

2-25-104. Disputes.

  1. If a dispute arises regarding the grading of a sample that is subject to excessive deductions, the grain dealer or the producer, or both, may request that the sample be regraded by an official grading agency for an official grade that shall be deemed the official grade of the disputed sample.
  2. If a regrading is requested, the grain dealer shall provide the sample to the official grading agency at the requester's expense.

History. Acts 2019, No. 795, § 1.

2-25-105. Enforcement.

  1. An employee of the Department of Agriculture may inspect randomly selected grain dealers to ensure the grain dealer is certified by the department for sampling and grading grain.
  2. An employee of the grain dealer that is responsible for sampling and grading grain is required to demonstrate through skill an adequate knowledge of sampling and grading grain as determined by the department.

History. Acts 2019, No. 795, § 1.

2-25-106. Penalties.

  1. If the Department of Agriculture conducts an inspection of a grain dealer as permitted under § 2-25-105(a) and determines that a grain dealer who issues grades is not taking samples of graded grain in a manner consistent with the standards adopted by the department, the department may place the grain dealer on probation.
    1. If a grain dealer who issues grades for grain is placed on probation, an employee of an official grading agency may inspect randomly selected samples of graded grain to determine whether the grain dealer is taking samples and grading grain in a manner consistent with the rules adopted by the department.
    2. The samples of graded grain shall be obtained and an inspection performed during the normal working hours of the grain dealer.
    3. The grain dealer shall pay for the samples of graded grain that are inspected.

History. Acts 2019, No. 795, § 1.

Chapters 26-31

[Reserved.]

Subtitle 3. Livestock

Chapter 32 General Provisions

Subchapter 1 — Regulation of Alternative Livestock

2-32-101. Alternate livestock.

    1. All creatures of the ratite family that are not indigenous to this state, including, but not limited to, ostriches, emus, and rheas;
    2. All creatures of the cervidae family that are not indigenous to this state, including, but not limited to, deer and elk; and
    3. All creatures of the camelidae family, including, but not limited to, llamas, alpacas, and guanacos
  1. Alternate livestock shall be considered farm animals or farm birds and shall be subject to all appropriate laws and rules relating to farm animals.

are hereby classified as alternate livestock.

History. Acts 1993, No. 377, § 1; 1995, No. 591, § 1.

Case Notes

Cited: Phillips v. Town of Oak Grove, 333 Ark. 183, 968 S.W.2d 600 (1998).

Subchapter 2 — Arkansas Livestock and Poultry Contract Protection Act

Effective Dates. Acts 2015, No. 1169, § 3: Emergency clause failed to pass. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that agriculture is an essential element of Arkansas's economy; that protecting the members of the agricultural community in Arkansas is in the best interests of the state; that the failure of some contractors to notify growers in advance that additional investments may be required under a production contract has resulted in some growers being forced to close their businesses; and that this act is immediately necessary because the unexpected closure of these businesses is harmful to the state's agricultural community and overall economy. Therefore, an emergency is declared to exist, and this act being immediately necessary for the preservation of the public peace, health, and safety shall become effective on: (1) The date of its approval by the Governor; (2) If the bill is neither approved nor vetoed by the Governor, the expiration of the period of time during which the Governor may veto the bill; or (3) If the bill is vetoed by the Governor and the veto is overridden, the date the last house overrides the veto.”

2-32-201. Production contracts — Definitions.

  1. As used in this section:
    1. “Contractor” shall have its common meaning within the industry and shall include a person or entity who owns livestock or poultry, or both, that are raised or cared for by a grower;
    2. “Grower” shall have its common meaning within the industry and shall include a person engaged in the business of raising and caring for livestock or poultry, or both, in accordance with a production contract, marketing agreement, or other arrangement under which a person raises and cares for livestock or poultry, or both, whether the livestock and poultry are owned by the person or by another person or entity;
    3. “Material risk” means:
      1. The duration of the production contract;
      2. The conditions for the termination of the production contract before the designated expiration of the production contract; and
      3. The terms relating to payment to be made to the grower, including, when applicable:
        1. The party liable for condemnations;
        2. The method for figuring feed conversion ratios;
        3. The method used to convert condemnations to live weight;
        4. The per-unit charges for feed and other inputs furnished by the contractor; and
        5. The factors to be used when grouping or ranking growers;
    4. “Production” shall have its common meaning within the industry and shall include raising and caring for livestock or poultry, or both, for processing for human consumption under the terms of a production contract; and
    5. “Production contract” shall have its common meaning within the industry and shall include any written agreement that provides for the raising and care of livestock or poultry, or both, by a grower for processing for human consumption for a contractor.
  2. A production contract shall:
    1. Be written in a readable form and be accompanied by a clearly written disclosure statement, signed by the grower, setting forth the nature of the material risk faced by all growers if the growers enter into the production contract;
    2. Be negotiated, entered into, and executed in an environment free from unfair or deceptive trade practices or other violations of law;
    3. Not prohibit or discourage a grower from associating with other growers to compare production contract terms or to address concerns or problems;
    4. Not prohibit or discourage growers from seeking professional, legal, financial, and agricultural production advice and counsel related to the production contract's terms, obligations, and responsibilities;
      1. Not deny a party to the production contract the ability to address a dispute in a court of competent jurisdiction.
      2. If after a dispute arises, all parties to the production contract agree, then a dispute arising under the contract may be submitted to arbitration; and
    5. Contain certain disclosure notices, including without limitation:
      1. The notices required under 7 U.S.C. § 197a, as it existed on January 1, 2015; and
      2. Notice that the grower's execution of the production contract establishes that the grower understands and acknowledges that additional large capital investments, including without limitation the purchase of additional equipment, the completion of improvements, and the upgrade of structures housing poultry or livestock, may be required of the grower during the term of the production contract.
    1. A production contract or a provision of a production contract that violates a provision of subsection (b) of this section is void and unenforceable.
    2. This subsection shall not affect another provision of a production contract, including a contract or related document, policy, or agreement that can be given effect without the voided provision.
    1. A grower who suffers damages because of a contractor's violation of a provision of subsection (b) of this section may obtain appropriate legal and equitable relief, including, but not limited to, injunctive relief and any damages allowable by Arkansas law.
    2. In a civil action against the contractor, the court may award the prevailing party reasonable attorney's fees and other litigation expenses.
  3. This section applies to a production contract entered into on or after September 1, 2005.

History. Acts 2005, No. 1253, § 1; 2015, No. 1169, § 1.

Amendments. The 2015 amendment, in (b)(1), deleted “shall” preceding “be accompanied” and inserted “signed by the grower”; in (b)(5)(A), substituted “a party” for “any party” and “a court” for “any court”; substituted “a” for “any” preceding “dispute arising” in (b)(5)(B); added (b)(6); and substituted “A production contract or a” for “Any” in (c)(1).

Subchapter 3 — Equine Monitoring

2-32-301. Equine monitoring by identification chips.

    1. It is found and determined by the General Assembly that:
      1. The Arkansas Livestock and Poultry Commission has been authorized by the United States Department of Agriculture to develop and administer a voluntary equine identification system; and
      2. Embedding a chip for the purpose of identifying an animal can endanger the animal if not properly injected and placed.
    2. Therefore, it is the purpose of this section to establish criteria for persons engaged in the voluntary embedding of chips for equine identification.
  1. The commission shall promulgate rules setting forth training requirements for the voluntary embedding or injecting a chip for purpose of animal identification.
  2. The commission shall administer training and provide certification upon satisfactory completion.
  3. The commission shall establish a fine for failure to obtain proper certification before embedding or injecting a chip for the purpose of equine animal identification.

History. Acts 2007, No. 1585, § 1.

Subchapter 4 — Livestock Owner's Lien Act

2-32-401. Title.

This subchapter shall be known and may be cited as the “Livestock Owner's Lien Act”.

History. Acts 2013, No. 499, § 1.

2-32-402. Definitions.

As used in this subchapter:

  1. “Affiliate” means a person that:
    1. Is directly or indirectly controlled by a first purchaser; or
    2. Directly or indirectly controls a first purchaser;
  2. “Agreement to sell” means an enforceable oral or written agreement by which a livestock owner, either directly or through a sales agent, agrees to sell livestock to a first purchaser;
  3. “Control” or “controlled by” means the direct or indirect possession of the power to direct or cause the direction of the management and policies of a person through ownership, by contract, or otherwise;
  4. “First purchaser” means the first person that purchases livestock, either directly or indirectly through a sales agent, under an agreement to sell;
  5. “Livestock” means cattle, bison, horses, sheep, goats, asses, mules, swine, domesticated rabbits, chickens, turkeys, and other domesticated animals raised primarily for human food consumption;
  6. “Livestock owner” means a person owning an interest in livestock before the acquisition of the livestock by a first purchaser;
  7. “Owner's lender” means a person that has a valid mortgage lien or security interest in a livestock owner's livestock at the time the livestock is delivered to the first purchaser;
  8. “Owner's lien” means a lien granted under this subchapter;
    1. “Permitted lien” means the following liens or security interests:
      1. A mortgage lien or security interest granted by a first purchaser that:
        1. Secures payment under a written instrument of indebtedness signed by the first purchaser and accepted in writing by the payee before August 16, 2013; and
        2. Has a principal amount and a fixed maturity stated in the mortgage lien or security interest; and
      2. A validly perfected and enforceable lien created by statute in relation to livestock purchased under an agreement to sell that secures payment of indebtedness incurred by the first purchaser before August 16, 2013.
    2. “Permitted lien” does not include a mortgage lien or security interest that:
      1. Secures payment under a written instrument of indebtedness that is modified, amended, or restated from or after August 16, 2013, by a modification, amendment, or restatement that increases the principal amount that is owed on August 16, 2013;
      2. Secures payment under a written instrument of indebtedness that is modified, amended, or restated from or after August 16, 2013, by a modification, amendment, or restatement that extends the stated maturity of the written instrument of indebtedness that is in effect on August 16, 2013; or
      3. Is not validly perfected with a first priority against the claims of all persons under applicable law other than a person holding a statutory or regulatory lien as to which first priority is granted by statute or rule;
  9. “Person” means an individual or business entity, including without limitation an executor, administrator, estate, agent, trust, trustee, institution, receiver, business trust, firm, corporation, partnership, limited liability company, cooperative, joint venture, governmental entity or agency, association, and any other legal entity;
  10. “Proceeds” means:
    1. A right or amount paid or to be paid in consideration of or as a consequence of the sale of livestock, including without limitation cash proceeds, accounts, chattel paper, instruments, and payment intangibles;
    2. A by-product from the slaughter of livestock; and
    3. A right or amount paid or to be paid in consideration of or as a consequence of the sale of a by-product from the slaughter of livestock;
  11. “Purchaser” means a person that:
    1. Is not an affiliate of a first purchaser; and
    2. Takes, receives, or purchases livestock from a first purchaser;
    1. “Sales agent” means a person that is authorized to sell livestock on behalf of or for the benefit of another person.
    2. “Sales agent” includes without limitation a livestock auction, auctioneer, commission company, or broker; and
  12. “Sales price” means the amount a first purchaser agrees to pay a livestock owner or a sales agent under an agreement to sell.

History. Acts 2013, No. 499, § 1; 2019, No. 315, § 20.

Amendments. The 2019 amendment substituted “rule” for “regulation” in (9)(B)(iii).

2-32-403. Livestock lien.

    1. To secure the obligations of a first purchaser to pay the sales price, a livestock owner is granted a lien in all livestock sold by the livestock owner for any unpaid portion of the sales price for the livestock.
    2. The lien granted under this section is granted and shall exist as part of and incident to the ownership of livestock.
  1. An owner's lien:
    1. Exists in and attaches immediately to all livestock on August 16, 2013; and
    2. Continues uninterrupted and without lapse:
      1. In all livestock upon and after sale of the livestock; and
      2. In and to all proceeds.
    1. An owner's lien exists until the livestock owner or the sales agent entitled to receive the sales price has received the full amount of the sales price.
    2. A security interest or mortgage lien of an owner's lender attaches to the livestock owner's right to an owner's lien in livestock or in proceeds from the sale of the livestock.
    3. An owner's lender does not waive its security interest or mortgage lien or right in an owner's lien by approving or authorizing the livestock owner to sell the livestock under a sales agreement.
    1. The validity of an owner's lien is not dependent on possession of the livestock by a livestock owner or sales agent.
    2. An owner's lien is not void or expired by reason of a change or transfer of the actual or constructive possession of or title to the livestock from the livestock owner or sales agent to a first purchaser or subsequent purchaser.

History. Acts 2013, No. 499, § 1.

2-32-404. Perfection of livestock lien.

An owner's lien is perfected automatically from August 16, 2013, or the date a sales agreement is executed after August 16, 2013, without the need to file a financing statement or other type of documentation.

History. Acts 2013, No. 499, § 1.

2-32-405. Commingled livestock — Priority.

  1. If livestock subject to an owner's lien are commingled with other livestock in a manner that the identity of the specific livestock subject to the owner's lien cannot be determined by reasonable means, the owner's lien continues without interruption into and attaches to the commingled livestock and is perfected automatically as of the date of its original perfection but only as to the percentage of the commingled livestock equal to the number of livestock to which the owner's lien originally attached.
  2. An owner's lien in commingled livestock under subsection (a) of this section has priority over any security interest or other lien that is not an owner's lien or permitted lien regardless of whether the security interest or other lien has been properly perfected.
  3. If more than one (1) owner's lien attaches to commingled livestock, the owners' liens rank equally in the proportion that the respective sales prices secured by each owner's lien bear as a percentage of the total of the sales prices secured by all owners' liens applicable at the time the livestock were commingled.

History. Acts 2013, No. 499, § 1.

2-32-406. Transfer of lien — Priority.

    1. A purchaser or sales agent takes free of an owner's lien otherwise applicable to the livestock purchased and is relieved of any obligations created under § 2-32-403 if the purchaser or sales agent pays the full amount of required consideration for the livestock under a good faith, noncollusive agreement to purchase the livestock.
    2. If a purchaser or sales agent pays the full amount of consideration under subdivision (a)(1) of this section, the owner's lien transfers to the proceeds paid by the purchaser or sales agent.
  1. An owner's lien shall continue uninterrupted in the proceeds paid to or otherwise due the first purchaser.
  2. Except as specifically provided in this section, an owner's lien has priority over the rights of a purchaser or sales agent.

History. Acts 2013, No. 499, § 1.

2-32-407. Lien priority generally.

Except for a permitted lien, an owner's lien takes priority over any other lien regardless of whether the lien arises by contract, law, equity, or otherwise.

History. Acts 2013, No. 499, § 1.

2-32-408. Applicability.

This subchapter does not affect the time at which legal title to livestock may pass by agreement or operation of law subject to an owner's lien.

History. Acts 2013, No. 499, § 1.

2-32-409. Waiver, relinquishment, or release of lien prohibited.

    1. A livestock owner shall not be required as a condition or term of an agreement to sell or otherwise to:
      1. Waive, relinquish, or release an owner's lien or any rights under this subchapter other than upon payment in full of the sales price; or
      2. Agree to a provision that would apply the law of a state other than the State of Arkansas with respect to the rights granted under this subchapter.
    2. A waiver, relinquishment, release, or provision that violates subdivision (a)(1) of this section is void as a matter of the public policy of this state.
  1. A livestock owner or a sales agent acting on behalf of a livestock owner may waive, relinquish, or release an owner's lien or any rights under this subchapter or agree to a provision that would apply the law of a state other than the State of Arkansas with respect to the rights granted under this subchapter if the first purchaser:
    1. Posts a letter of credit in a form and amount satisfactory to the livestock owner or sales agent; or
    2. Both:
      1. Executes a contract that is satisfactory to the livestock owner or sales agent to prepay or escrow the sales price under an agreement to sell that is satisfactory to the livestock owner; and
      2. Performs all of the first purchaser's obligations under the contract.

History. Acts 2013, No. 499, § 1.

2-32-410. Lien expiration — Action on an owner's lien.

  1. An owner's lien expires one (1) year after the last day of the month following the date the sales price from the sale of livestock subject to the lien is required by law or contract to be paid to the livestock owner but only as to the particular livestock sold during the month unless an action to enforce the owner's lien is commenced in a court of competent jurisdiction during that time.
  2. If a sales agent advances the sales price for livestock to the livestock owner before the first purchaser pays the sales price in full to the livestock owner or sales agent, the sales agent shall assume and may enforce all rights of the livestock owner under this subchapter as to the livestock or the proceeds from the sale of the livestock.
    1. In addition to any other court of competent jurisdiction, an action to enforce an owner's lien may be commenced in the district court of the county in which the:
      1. Agreement to sell is executed;
      2. Sales price is to be paid;
      3. The livestock that have not been paid for are located; or
      4. Proceeds may be found.
    2. The commencement of one (1) or more of the following proceedings by or against a person claiming an interest in property subject to an owner's lien tolls the one-year period in which to commence an action to enforce the owner's lien under subsection (a) of this section for an additional period of ninety (90) days from the earlier of the final conclusion or dismissal of the proceedings or the date final relief is obtained from the applicable tribunal authorizing the commencement of the action:
      1. An action seeking to adjudicate the person as bankrupt or insolvent;
      2. An action seeking liquidation, winding up, reorganization, arrangement, adjustment, protection, relief, or composition of the person or the person's debts under any law relating to bankruptcy, insolvency, or reorganization or relief of debtors; or
      3. An action seeking the entry of an order for relief or the appointment of a receiver, trustee, or other similar official for the person or for a substantial part of the person's property.
  3. The prevailing party in an action to enforce this subchapter may recover costs and reasonable attorney's fees in any legal proceeding.
  4. This subchapter does not impair or affect the right of a livestock owner or a sales agent to maintain a personal action to recover the debt against a person liable for payment of the sales price or to exercise any other available rights and remedies.

History. Acts 2013, No. 499, § 1.

2-32-411. Preference.

If this subchapter conflicts with other rights a livestock owner may have, the livestock owner's right to receive the sales price shall be given preference.

History. Acts 2013, No. 499, § 1.

Subchapter 5 — Administrative Proceedings

Effective Dates. Acts 2019, No. 910, § 6346(b): July 1, 2019. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that this act revises the duties of certain state entities; that this act establishes new departments of the state; that these revisions impact the expenses and operations of state government; and that the sections of this act other than the two uncodified sections of this act preceding the emergency clause titled ‘Funding and classification of cabinet-level department secretaries’ and ‘Transformation and Efficiencies Act transition team’ should become effective at the beginning of the fiscal year to allow for implementation of the new provisions at the beginning of the fiscal year. Therefore, an emergency is declared to exist, and Sections 1 through 6343 of this act being necessary for the preservation of the public peace, health, and safety shall become effective on July 1, 2019”.

2-32-501. Administrative penalties.

  1. The Arkansas Livestock and Poultry Commission may impose administrative penalties not to exceed five thousand dollars ($5,000) per violation against a person who violates any provision of this subtitle or any rule adopted by the commission under this subtitle.
  2. The imposition of administrative penalties shall be conducted under the Arkansas Administrative Procedure Act, § 25-15-201 et seq.
  3. The commission or the commission's designee may issue subpoenas.
  4. If a person against whom an administrative penalty has been imposed by the commission as authorized under this section fails to pay the penalty to the commission, the commission may file an action to collect the administrative penalty in the circuit court of the county in which the person resides.

History. Acts 2017, No. 1011, § 18; 2019, No. 910, § 25.

Amendments. The 2019 amendment substituted “or the commission's designee” for “or the Deputy Director of the Arkansas Livestock and Poultry Commission” in (c).

2-32-502. Subpoenas — Refusal to testify.

  1. The Arkansas Livestock and Poultry Commission or a member of the commission may issue a subpoena for a witness to require his or her attendance and testimony before the commission, and to require the production of books, papers, and records in any proceeding before the commission that may be material to questions before the commission.
  2. The subpoena under subsection (a) of this section shall be served by:
    1. The county sheriff of the county in which the person resides;
    2. The deputy of the county sheriff; or
    3. Any other officer authorized by law to serve process in this state.
  3. If a person fails or refuses to comply with a subpoena issued by the commission or a member of the commission, or refuses to testify or answer to a matter in which he or she may lawfully be interrogated, the circuit court of the county in which the person is domiciled, on application of the commission may:
    1. In term time or vacation, issue an attachment for the person;
    2. Compel the person to:
      1. Comply with the subpoena;
      2. Appear before the commission;
      3. Produce the relevant documents; and
      4. Give his or her testimony upon matters as may be lawfully required; and
    3. Punish for contempt a person who fails to obey an order under this section, if the person disobeys a subpoena.
  4. If a person is not domiciled in this state, the circuit court of the county in which the hearing is held or is to be held shall have jurisdiction.

History. Acts 2017, No. 1011, § 18.

2-32-503. Administration of oath to witnesses.

A member of the Arkansas Livestock and Poultry Commission or his or her attorney may administer an oath to any witness in any hearing, investigation, or proceeding under this subtitle.

History. Acts 2017, No. 1011, § 18.

2-32-504. Appellate review.

A person affected by a rule, action, or order made by the Arkansas Livestock and Poultry Commission may obtain review of the rule, action, or order under the Arkansas Administrative Procedure Act, § 25-15-201 et seq.

History. Acts 2017, No. 1011, § 18.

2-32-505. Disposition of fees and penalties.

  1. Fees paid and penalties collected under this subtitle shall be deposited into the State Treasury as special revenues credited to the Livestock and Poultry Commission Disease and Pest Control Fund.
  2. Fees or penalties collected under this subtitle shall be cash funds when received by the Treasurer of State and shall not be deposited into or deemed a part of the State Treasury for the purpose of:
    1. Arkansas Constitution, Article 5, § 29;
    2. Arkansas Constitution, Article 16, § 12;
    3. Arkansas Constitution, Amendment 20; or
    4. Any other constitutional or statutory provision.

History. Acts 2017, No. 1011, § 18.

Chapter 33 Arkansas Livestock and Poultry Commission

Subchapter 1 — General Provisions

A.C.R.C. Notes. References to “this subchapter” in §§ 2-33-1012-33-114 may not apply to § 2-33-115 which was enacted subsequently.

Acts 2005, No. 2125, § 22, provided:

“TYPE 2 TRANSFER. Effective July 1, 2005, all duties, functions, records, property, obligations, personnel, and authority to levy and collect diagnostic and laboratory fees, pursuant to Arkansas Code § 2-33-111 and § 2-33-112, for the Springdale Laboratory of the Arkansas Livestock and Poultry Commission are hereby transferred by a Type 2 transfer from the Arkansas Livestock and Poultry Commission to the Division of Agriculture of the University of Arkansas.”

Cross References. Allocation of funds for joint county fairs and livestock shows, § 2-36-303.

Effective Dates. Acts 1963, No. 87, § 16: Feb. 27, 1963. Emergency clause provided: “It has been found that notwithstanding the fact that the commission will not have the functions performable by it hereunder until April 1, 1963, it is necessary that immediate action be taken by the governor to appoint, and by the senate to confirm the appointment of, the members of the commission in order that the commission may organize and begin to prepare its plan of operations so that there may be no disruption of service on and after that date, and that only by the immediate operation of this act may such condition be obviated. Therefore, an emergency is hereby declared to exist, and this act being necessary for the preservation of the public peace, health and safety shall take effect and be in full force from and after its passage and approval.”

Acts 1963, No. 450, § 10: Mar. 19, 1963. Emergency clause provided: “It has been found and determined by the General Assembly that services promoting the agriculture industry of Arkansas may be better performed by the state agency delegated this responsibility by, generally, reestablishing this agency and updating pertinent legislation; that such legislation has been proposed to the sixty-fourth General Assembly; that this act is necessary to provide appropriations for the proposed Arkansas Livestock and Poultry Commission; therefore, an emergency is hereby declared to exist, and this act being necessary for the preservation of the public peace, health and safety shall take effect and be in full force from and after its passage and approval.”

Acts 1981, No. 867, § 5: Mar. 28, 1981. Emergency clause provided: “It is hereby found and determined by the General Assembly that it is in the best interest of the livestock and poultry industry of this state and the growth of such industry that the Livestock and Poultry Commission be separated from the Department of Commerce; that this act is designed to accomplish the same; that the Livestock and Poultry Commission should be established as an independent agency at the beginning of the next fiscal year; and that unless an emergency is declared this act will not go into effect on July 1, 1981. Therefore, an emergency is hereby declared to exist and this act being immediately necessary for the preservation of the public peace, health and safety shall be in full force and effect from and after its passage and approval.”

Acts 1983, No. 366, § 27: July 1, 1983. Emergency clause provided: “It is hereby found and determined by the Seventy-Fourth General Assembly, that the Constitution of the State of Arkansas prohibits the appropriation of funds for more than a two (2) year period; that the effectiveness of this act on July 1, 1983 is essential to the operation of the agency for which the appropriations in this act are provided, and that in the event of an extension of the Regular Session, the delay in the effective date of this act beyond July 1, 1983 could work irreparable harm upon the proper administration and provision of essential governmental programs. Therefore, an emergency is hereby declared to exist and this act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after July 1, 1983.”

Acts 1985, No. 302, § 3: Mar. 12, 1985. Emergency clause provided: “It is hereby found and determined by the General Assembly that the members of the Livestock and Poultry Commission serve without pay and that the per diem they receive for commission meetings is not adequate; that this act provides a more reasonable amount of per diem and that until this act becomes effective the commissioners will continue to receive an unreasonably low rate or per diem. Therefore, an emergency is hereby declared to exist and this act being immediately necessary for the preservation of the public peace, health and safety shall be in full force and effect from and after its passage and approval.”

Acts 1993, No. 1174, § 27: July 1, 1993. Emergency clause provided: “It is hereby found and determined by the Seventy-Ninth General Assembly, that the Constitution of the State of Arkansas prohibits the appropriation of funds for more than a two (2) year period; that the effectiveness of this Act on July 1, 1993 is essential to the operation of the agency for which the appropriations in this Act are provided, and that in the event of an extension of the Regular Session, the delay in the effective date of this Act beyond July 1, 1993 could work irreparable harm upon the proper administration and provision of essential governmental programs. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after July 1, 1993.”

Acts 1995, No. 236, § 34: July 1, 1995. Emergency clause provided: “It is hereby found and determined by the Eightieth General Assembly, that the Constitution of the State of Arkansas prohibits the appropriation of funds for more than a two (2) year period; that the effectiveness of this Act on July 1, 1995 is essential to the operation of the agency for which the appropriations in this Act are provided, and that in the event of an extension of the Regular Session, the delay in the effective date of this Act beyond July 1, 1995 could work irreparable harm upon the proper administration and provision of essential governmental programs. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after July 1, 1995.”

Acts 1997, No. 250, § 258: Feb. 24, 1997. Emergency clause provided: “It is hereby found and determined by the General Assembly that Act 1211 of 1995 established the procedure for all state boards and commissions to follow regarding reimbursement of expenses and stipends for board members; that this act amends various sections of the Arkansas Code which are in conflict with the Act 1211 of 1995; and that until this cleanup act becomes effective conflicting laws will exist. Therefore an emergency is declared to exist and this act being immediately necessary for the preservation of the public peace, health and safety shall become effective on the date of its approval by the Governor. If the bill is neither approved nor vetoed by the Governer [sic], it shall become effective on the expiration of the period of time during which the Governor may veto the bill. If the bill is vetoed by the Governor and the veto is overridden, it shall become effective on the date the last house overrides the veto.”

Acts 2019, No. 910, § 6346(b): July 1, 2019. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that this act revises the duties of certain state entities; that this act establishes new departments of the state; that these revisions impact the expenses and operations of state government; and that the sections of this act other than the two uncodified sections of this act preceding the emergency clause titled ‘Funding and classification of cabinet-level department secretaries’ and ‘Transformation and Efficiencies Act transition team’ should become effective at the beginning of the fiscal year to allow for implementation of the new provisions at the beginning of the fiscal year. Therefore, an emergency is declared to exist, and Sections 1 through 6343 of this act being necessary for the preservation of the public peace, health, and safety shall become effective on July 1, 2019”.

2-33-101. Creation of commission.

There is created the Arkansas Livestock and Poultry Commission.

History. Acts 1963, No. 87, § 1; A.S.A. 1947, § 78-301.

Publisher's Notes. Acts 1963, No. 87, § 10, provided, in part, that the State Livestock Sanitary Board and the office of State Veterinarian would be abolished effective April 1, 1963, and all their functions, etc., would be transferred to the Arkansas Livestock and Poultry Commission and that the commission would take over all their records, etc., and all executory contracts, unless disaffirmed.

Acts 1963, No. 87, § 11, provided that effective April 1, 1963 all functions, etc., of the State Board of Finance relating to the development of the livestock industry of Arkansas would be transferred to the commission and that the commission would take over all executory contracts of the board and all of its instruments in writing that related directly to the development of the livestock and poultry industry of Arkansas.

Acts 1981, No. 867, § 1, provided that the Livestock and Poultry Commission, as created by § 2-33-101 et seq. and as transferred to the Division of Livestock, Poultry, and Agriculture of the Department of Commerce (abolished), was separated from the Department of Commerce and should be an independent agency of state government to function in the same manner it functioned prior to its transfer and that the Division of Livestock, Poultry, and Agriculture was abolished.

2-33-102. Members.

  1. The Arkansas Livestock and Poultry Commission shall consist of seven (7) members who are residents and electors of this state to be appointed by the Governor by and with the advice and consent of the Senate for terms of seven (7) years and shall be actively engaged in the Arkansas livestock or poultry industries.
  2. Each congressional district shall be represented by membership on the commission.
  3. The term of office shall commence on January 15 following the expiration date of the preceding term and shall end on January 14 of the seventh year following the year in which the term commenced.
  4. Any vacancies arising in the membership of the commission for any reason other than expiration of the terms for which the members were appointed shall be filled by appointment by the Governor and be effective until the expiration of the terms, subject to the confirmation of the Senate when it is next in session.
  5. Before entering upon his or her duties, each member of the commission shall take, subscribe, and file in the office of the Secretary of State an oath to support the United States Constitution and the Arkansas Constitution and to faithfully perform the duties of the office upon which he or she is about to enter.
  6. Members of the commission shall receive no pay for their services. Members of the commission may receive expense reimbursement and stipends in accordance with § 25-16-901 et seq.

History. Acts 1963, No. 87, §§ 2-5; 1973, No. 725, § 1; 1983, No. 756, § 1; 1985, No. 302, § 1; A.S.A. 1947, §§ 78-302 — 78-305; Acts 1997, No. 250, § 6; 2017, No. 1011, § 1.

Publisher's Notes. The terms of the members of the Arkansas Livestock and Poultry Commission are arranged so that one term expires on January 14 every year.

Amendments. The 2017 amendment added “and shall be actively engaged in the Arkansas livestock or poultry industries” in (a).

2-33-103. Organization and meetings.

  1. The Arkansas Livestock and Poultry Commission shall from time to time select from its membership a chair and a vice chair.
    1. The commission shall adopt and may modify rules for the conduct of its business and shall keep a record of its transactions, findings, and determinations, which shall be public.
    2. The rules shall provide for regular meetings and for special meetings at the call of the chairman or the vice chairman if he or she is, for any reason, the acting chairman, either at his or her own instance or upon the written request of at least four (4) members.
    1. A majority of the membership of the commission shall constitute a quorum.
    2. A majority vote of those members present shall be required for any action of the commission.
  2. A vacancy on the commission due to death, resignation, removal, or other cause shall be filled by appointment by the Governor for the unexpired portion of the term.
  3. The Governor may remove a member of the commission before the expiration of his or her term for cause only, after notice and a hearing in accordance with §§ 25-17-210 and 25-17-211.
  4. All meetings shall be open to the public.

History. Acts 1963, No. 87, § 6; A.S.A. 1947, § 78-306; Acts 2017, No. 1011, § 2.

Amendments. The 2017 amendment redesignated former (a)(1) as (a); deleted former (a)(2); redesignated former (b)(1)(A) and (B) as (b)(1) and (b)(2); deleted former (b)(2) and (b)(3)(A); added present (c) through (e); and redesignated former (b)(3)(B) as (f).

2-33-104. Director.

    1. The Director of the Arkansas Livestock and Poultry Commission shall be appointed by the Governor and shall serve at the pleasure of the Governor.
    2. The director shall report to the Secretary of the Department of Agriculture.
    1. The secretary may delegate to the director any of the powers or duties required to administer the:
      1. Statutory duties of the Arkansas Livestock and Poultry Commission; and
      2. Rules, orders, or directives promulgated or issued by the commission.
    2. The director may exercise the powers and duties delegated to him or her under subdivision (b)(1) of this section in the name of the commission and of the Department of Agriculture.

History. Acts 1963, No. 87, §§ 7, 8; A.S.A. 1947, §§ 78-307, 78-308; Acts 2017, No. 1011, § 3; 2019, No. 910, § 26.

Amendments. The 2017 amendment substituted “Deputy” for “Executive” in the section heading; and rewrote the section.

The 2019 amendment substituted “Director” for “Deputy director” in the section heading and rewrote the section.

2-33-105. State Veterinarian.

  1. The Secretary of the Department of Agriculture shall employ a State Veterinarian.
  2. The State Veterinarian shall be a person who has been granted the degree of Doctor of Veterinary Medicine and holds a current license issued by the Veterinary Medical Examining Board of this state.

History. Acts 1963, No. 87, §§ 7, 8; A.S.A. 1947, §§ 78-307, 78-308; Acts 2017, No. 1011, § 4; 2019, No. 910, § 27.

Amendments. The 2017 amendment substituted “Secretary of the Arkansas Agriculture Department” for “Executive Director of the Arkansas Livestock and Poultry Commission” in (a)(1); substituted “and holds” for “by a recognized school of veterinary medicine and who holds” in (a)(2); substituted “Secretary of the Arkansas Agriculture Department” for “executive director” in (b)(1); and deleted former (c).

The 2019 amendment rewrote the section.

2-33-106. [Repealed.]

Publisher's Notes. This section, concerning bonding of employees, was repealed by Acts 2017, No. 1011, § 5. The section was derived from Acts 1963, No. 87, §§ 7, 8; A.S.A. 1947, § 78-308.

2-33-107. Powers and duties generally.

  1. Authority for the control, suppression, and eradication of livestock and poultry diseases and pests, and supervision of livestock and poultry work in this state, including authority to promulgate rules governing the handling, sale, and use of vaccines, antigens, and other biological products used for reportable diseases and emergencies affecting livestock and poultry, is vested in the Arkansas Livestock and Poultry Commission.
  2. The commission shall have the authority to:
    1. Enter into cooperative work agreements with any or all federal agencies in matters relating to the functions performable by the commission including, but not limited to, general livestock and poultry disease control programs;
    2. Receive and expend any moneys arising from federal means, grants, contributions, gratuities, or reimbursements for or on account of any of the functions at any time performable by the commission;
    3. Cooperate with similar agencies existing in other states and with the appropriate federal agencies and appropriate other agencies of this state for the purpose of coordinating laws and rules governing the interstate movement of livestock and poultry and the products producible therefrom, with the view of safeguarding against animal diseases, insects, and pests and at the same time endeavoring to eliminate interstate trade barriers;
    4. Cooperate with, and receive the cooperation of, all state-supported institutions of higher education in matters of mutual interest relating to the development of the livestock and poultry interests of this state;
    5. Cooperate with the state, district, and county livestock show associations in the promotion and development of the livestock and poultry industry of this state;
    6. Contract and be contracted with;
    7. Take other action, not inconsistent with law, as it shall deem necessary or desirable to effectively carry out its duties;
    8. Make modifications or adjustments in disease and pest control and eradication activities and programs as it deems necessary or appropriate to enable it to carry out its responsibilities with respect to such activities and programs;
    9. Obtain, upon majority vote of the commission, health records of livestock and poultry, including records of livestock and poultry produced, sold, processed, or otherwise handled, to enable it to effectively administer and enforce its rules and laws relating to disease or pest control and eradication programs; and
    10. Prescribe, by administrative rule, the method and manner for testing and vaccination of livestock or poultry located within the state but such authority shall not interfere with farmer vaccination of his or her own product.
  3. The commission shall have the authority to make, modify, and enforce such rules and orders, not inconsistent with law, as it shall from time to time deem necessary to effectively carry out the functions performable by it.

History. Acts 1963, No. 87, §§ 9, 12; A.S.A. 1947, §§ 78-309, 78-312; Acts 2017, No. 1011, § 6.

Amendments. The 2017 amendment redesignated former (a)(1) as (a); in present (a), substituted “Authority” for “Full authority”, deleted “sanitary” preceding “work in this state”, and inserted “including authority to promulgate . . . affecting livestock and poultry”; deleted former (a)(2); in (b)(1), substituted “any or all federal agencies” for “the several federal departments and agencies” and deleted “such as brucellosis, tuberculosis, hog cholera, scabies, pullorum, and leucosis” at the end; redesignated former (b)(2)(A)(i) as (b)(2); deleted former (b)(2)(A)(ii); deleted former (b)(2)(B); added present (b)(8) through (b)(10); and added (c).

2-33-108 — 2-33-110. [Repealed.]

Publisher's Notes. These sections, concerning authority to stop vehicles, rules, regulations, and orders, and violations in interstate movement of livestock and poultry, were repealed by Acts 2017, No. 1011, §§ 7-9. The sections were derived from the following sources:

2-33-108. Acts 1969, No. 633, § 1; 1985, No. 150, § 5; 1985, No. 151, § 5; A.S.A. 1947, § 78-321.

2-33-109. Acts 1963, No. 87, § 10; A.S.A. 1947, § 78-310.

2-33-110. Acts 1959, No. 178, § 1; A.S.A. 1947, § 78-315; Acts 2005, No. 1994, § 191.

2-33-111. Livestock and poultry diagnostic services.

  1. The Arkansas Livestock and Poultry Commission may promulgate rules concerning services performed by the Arkansas Livestock and Poultry Commission Veterinary Diagnostic Laboratory.
    1. A fee structure may be designed and maintained by the commission for the purpose of defraying the cost of diagnostic services.
      1. The fees collected shall be deposited into the State Treasury as special revenues and shall be credited to the Livestock and Poultry Special Revenue Fund.
      2. Before the close of each fiscal year, the Chief Fiscal Officer of the State shall determine the amount of moneys which will remain at the end of the fiscal year into the account from fees collected under this section and shall allow the moneys to be carried forward and made available for the same purposes in the next succeeding fiscal year.
    1. All materials, data, and information received by the laboratory are confidential and are not subject to examination or disclosure under the Freedom of Information Act of 1967, § 25-19-101 et seq.
    2. An employee shall not knowingly disclose any materials, data, or information concerning submissions to the laboratory without the consent of the parties involved.
    1. The laboratory shall be administered by the Department of Agriculture.
      1. The department may by rule assign additional laboratory duties and functions to the laboratory.
      2. Additional laboratory duties and functions assigned under subdivision (d)(2)(A) of this section shall be funded by the department and not by the special revenues established in subsection (b) of this section.

History. Acts 1983, No. 366, § 17; A.S.A. 1947, § 78-331.1; Acts 1995, No. 236, § 25; 2017, No. 1011, § 10; 2019, No. 910, § 28.

A.C.R.C. Notes. Acts 2005, No. 2125, § 22, provided:

“TYPE 2 TRANSFER. Effective July 1, 2005, all duties, functions, records, property, obligations, personnel, and authority to levy and collect diagnostic and laboratory fees, pursuant to Arkansas Code § 2-33-111 and § 2-33-112, for the Springdale Laboratory of the Arkansas Livestock and Poultry Commission are hereby transferred by a Type 2 transfer from the Arkansas Livestock and Poultry Commission to the Division of Agriculture of the University of Arkansas.”

Acts 2010, No. 229, § 26, provided: “Effective July 1, 2005, all duties, functions, records, property, obligations, personnel, and authority to levy and collect diagnostic and laboratory fees, pursuant to Arkansas Code § 2-33-111 and § 2-33-112, for the Springdale Laboratory of the Arkansas Livestock and Poultry Commission are hereby transferred by a Type 2 transfer from the Arkansas Livestock and Poultry Commission to the Division of Agriculture of the University of Arkansas.”

Amendments. The 2017 amendment, in (a), deleted “and regulations” following “rules” and substituted “the Arkansas Livestock and Poultry Commission Veterinary Diagnostic Laboratory” for “its diagnostic laboratories that pertain to all species of livestock and poultry”; deleted “the provisions of” following “fees collected under” in (b)(2)(B); and added (c).

The 2019 amendment added (d).

2-33-112. [Repealed.]

Publisher's Notes. This section, concerning small animal diagnostic services, was repealed by Acts 2017, No. 1011, § 11. The section was derived from Acts 1981, No. 770, § 22; 1985, No. 587, § 1; A.S.A. 1947, § 78-331; Acts 1995, No. 236, § 26.

2-33-113. Disposition of fees and revenues.

All fees and revenues collected by the Arkansas Livestock and Poultry Commission shall be deposited into the State Treasury as special revenues to be credited to the Livestock and Poultry Commission Disease and Pest Control Fund.

History. Acts 1981, No. 867, § 3; A.S.A. 1947, § 78-332; Acts 1991, No. 403, § 1; 2017, No. 1011, § 12.

Publisher's Notes. This section may affect §§ 2-33-114 and 2-33-307. It may be affected by §§ 19-5-302(8) and 19-6-301(34).

Amendments. The 2017 amendment removed the (a) designation; substituted “to be credited to the Livestock and Poultry Commission Disease and Pest Control Fund” for “to be used for the maintenance, operation, and improvement of the commission”; and deleted (b).

2-33-114. Federal Arkansas Livestock and Poultry Commission Fund.

  1. There is created in the State Treasury a fund to be known as the “Federal Arkansas Livestock and Poultry Commission Fund”.
  2. Federal funds as may be allotted to the Arkansas Livestock and Poultry Commission for maintenance and operation of its cooperative programs with the United States Department of Agriculture shall be deposited into the fund created in this section.

History. Acts 1963, No. 450, § 8; A.S.A. 1947, § 78-314; Acts 2017, No. 1011, § 13.

Publisher's Notes. This section may be affected by §§ 2-33-113, 19-5-302(8), and 19-6-301(34).

Amendments. The 2017 amendment substituted “cooperative programs with the United States Department of Agriculture” for “Agricultural Marketing Service Program” in (b).

2-33-115. Fees.

  1. The following fees shall be assessed by the Arkansas Livestock and Poultry Commission:
    1. A fee of two dollars ($2.00) per head collected on all horses sold in the state; and
    2. On each state, district, and county fair held in the State of Arkansas there shall be levied a four and five-tenths percent (4.5%) surcharge on each paid admission to the fairs, and such levy shall be remitted to the Treasurer of State, who shall deposit the revenues into the State Treasury to the credit of the Livestock and Poultry Special Revenue Fund or the Livestock and Poultry Commission Disease and Pest Control Fund as determined by the Secretary of the Department of Agriculture.
  2. The commission is hereby authorized to promulgate such rules as are necessary to administer the fees, rates, or charges for services established herein.

History. Acts 1993, No. 1174, § 18; 1995, No. 236, § 27; 2017, No. 1011, § 14; 2019, No. 910, § 29.

A.C.R.C. Notes. References to “this subchapter” in §§ 2-33-1012-33-114 may not apply to this section which was enacted subsequently.

Amendments. The 2017 amendment deleted former (a)(1) and redesignated the remaining subdivisions accordingly; and added “or the Livestock and Poultry Commission Disease and Pest Control Fund as determined by the Secretary of the Arkansas Agriculture Department” in present (a)(2).

The 2019 amendment substituted “Arkansas Livestock and Poultry Commission” for “Livestock and Poultry Commission” in the introductory language of (a); and substituted “Department of Agriculture” for “Arkansas Agriculture Department” in (a)(2).

2-33-116. [Repealed.]

Publisher's Notes. This section, concerning Livestock and Poultry Fund funds, was repealed by Acts 2017, No. 1011, § 15. The section was derived from Acts 1997, No. 766, § 5; 1999, No. 1183, § 24.

Subchapter 2 — Livestock Division

2-33-201 — 2-33-208. [Repealed.]

Publisher's Notes. This subchapter, concerning the livestock division, was repealed by Acts 2017, No. 1011, § 16. The subchapter was derived from the following sources:

2-33-201. Acts 1973, No. 454, § 1; 1977, No. 76, § 2; A.S.A. 1947, § 78-322.

2-33-202. Acts 1973, No. 454, § 9; A.S.A. 1947, § 78-330.

2-33-203. Acts 1973, No. 454, §§ 3, 5; A.S.A. 1947, §§ 78-324, 78-326.

2-33-204. Acts 1973, No. 454, §§ 4, 6; A.S.A. 1947, §§ 78-325, 78-327.

2-33-205. Acts 1973, No. 454, § 8; A.S.A. 1947, § 78-329.

2-33-206. Acts 1973, No. 454, § 7; A.S.A. 1947, § 78-328.

2-33-207. Acts 1963, No. 450, § 6; A.S.A. 1947, § 78-313.

2-33-208. Acts 1969, No. 360, § 1; A.S.A. 1947, § 78-313.1.

Subchapter 3 — Poultry Division

Preambles. Acts 1975 (Extended Sess., 1976), No. 1216, contained a preamble which read:

“Whereas, under the existing cooperative agreement between the State of Arkansas and the U.S. Department of Agriculture, the USDA bills Arkansas poultry and egg processors for poultry and egg grading and egg products inspection services performed by both federal and state personnel, collects such charges and remits to the state a portion of the charges collected for services of state personnel; and

“Whereas, under the present law, Act 49 of 1965, the Department of Commerce-Livestock and Poultry Commission has the authority to enter into cooperative agreements with the USDA whereby the Commerce Department will bill poultry and egg processors for poultry and egg grading and egg products inspection services performed by federal and state graders and inspectors, to collect for such services and to remit a portion to the USDA, and it would appear to be advantageous to both the State of Arkansas and the Arkansas processors of poultry and eggs for the state to become the billing and collecting agency for such services; and

“Whereas, in order for the state to assume the responsibility for such billing and collection, it is necessary that an appropriation be made to the Department of Commerce-Livestock and Poultry Commission out of which the department can make payments to the USDA of funds collected for services performed by USDA inspectors and graders;

“Now therefore … .”

Acts 1987, No. 1025, contained a preamble which read:

“Whereas, under the existing cooperative agreement between the State of Arkansas and the U.S. Department of Agriculture, the USDA bills Arkansas poultry and egg processors for poultry and egg grading and egg products inspection services performed by both federal and State personnel, collects such charges and remits to the State a portion of the charges collected for services of State personnel; and

“Whereas, under the present law, Act 49 of 1965, the Livestock and Poultry Commission has the authority to enter into cooperative agreements with the USDA whereby the Livestock and Poultry Commission will bill poultry and egg processors for poultry and egg grading and egg products inspection services performed by federal and State graders and inspectors, to collect for such services and to remit a portion to the USDA, and it would appear to be advantageous to both the State of Arkansas and the Arkansas processors of poultry and eggs for the State to become the billing and collecting agency for such services; and

“Whereas, in order for the State to assume the responsibility for such billing and collection, it is necessary that an appropriation be made to the Livestock and Poultry Commission out of which the Department can make payments to the USDA of funds collected for services performed by USDA inspectors and graders,

“Now therefore … .”

Effective Dates. Acts 1975 (Extended Sess., 1976), No. 1216, § 5: Feb. 12, 1976. Emergency clause provided: “It is hereby found and determined by the General Assembly that it would be advantageous to the State of Arkansas and to the poultry and egg processors in the state for the Department of Commerce-Livestock and Poultry Commission to bill such processors for poultry and egg grading and egg products inspection services performed by both state and federal personnel to collect for all such services and remit a portion thereof to the U.S. Department of Agriculture for services of the federal personnel; that in order to enable the Department of Commerce to perform this function, it is essential that an additional appropriation be made to the department out of which it can make remittances to the U.S. Department of Agriculture for services of federal personnel; that this act is designed to make such appropriation and should be given effect immediately so that the Department of Commerce can commence such billing and remittance program at the earliest possible date. Therefore, an emergency is hereby declared to exist and this act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after its passage and approval.”

Acts 1987, No. 1025, § 4: Apr. 14, 1987. Emergency clause provided: “It is hereby found and determined by the General Assembly that because of the case Ricarte v. State, CR 86-31, a question has arisen over the validity of Act 1216 of the Extended Session of 1976; that this Act is a reenactment of the former law; and that the immediate passage of this Act is necessary to clarify the state of the law on this issue. Therefore, an emergency is hereby declared to exist, and this Act being immediately necessary for the preservation of the public peace, health and safety, shall be in full force and effect from and after its passage and approval.”

Acts 1989 (1st Ex. Sess.), No. 192, § 32: July 1, 1989. Emergency clause provided: “It is hereby found and determined by the Seventy-Seventh General Assembly, that the Constitution of the State of Arkansas prohibits the appropriation of funds for more than a two (2) year period; that the effectiveness of this Act on July 1, 1989 is essential to the operation of the agency for which the appropriations in this Act are provided, and that in the event of an extension of the Regular Session, the delay in the effective date of this Act beyond July 1, 1989 could work irreparable harm upon the proper administration and provision of essential governmental programs. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after July 1, 1989.”

Acts 2019, No. 910, § 6346(b): July 1, 2019. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that this act revises the duties of certain state entities; that this act establishes new departments of the state; that these revisions impact the expenses and operations of state government; and that the sections of this act other than the two uncodified sections of this act preceding the emergency clause titled ‘Funding and classification of cabinet-level department secretaries’ and ‘Transformation and Efficiencies Act transition team’ should become effective at the beginning of the fiscal year to allow for implementation of the new provisions at the beginning of the fiscal year. Therefore, an emergency is declared to exist, and Sections 1 through 6343 of this act being necessary for the preservation of the public peace, health, and safety shall become effective on July 1, 2019”.

2-33-301. Division of Markets and Grading.

There is established a Division of Markets and Grading of the Arkansas Livestock and Poultry Commission which shall have the responsibility of administering, under the direction of the commission, the provisions of the Arkansas Egg Marketing Act of 1969, § 20-58-201 et seq., as amended, and the Poultry and Egg Grading Program authorized by this subchapter.

History. Acts 1965, No. 49, § 1; A.S.A. 1947, § 78-316.

2-33-302. [Repealed.]

Publisher's Notes. This section, concerning civil service system, was repealed by Acts 2017, No. 1011, § 17. The section was derived from Acts 1965, No. 49, § 4; A.S.A. 1947, § 78-319.

2-33-303. Poultry and egg grading program.

The Arkansas Livestock and Poultry Commission is authorized to establish a Poultry and Egg Grading Program in this state which shall be established in cooperation with the United States Department of Agriculture and shall be in compliance with the applicable standards and requirements as prescribed by the United States Department of Agriculture for federal poultry and egg grading purposes.

History. Acts 1965, No. 49, § 1; A.S.A. 1947, § 78-316.

2-33-304. Providing of poultry and egg grading services.

    1. The Arkansas Livestock and Poultry Commission shall promulgate such reasonable rules and regulations for poultry and egg grading in this state as may be necessary for the establishment and enforcement thereof.
    2. The rules and regulations shall be in compliance with the standards and requirements established by the United States Department of Agriculture for poultry and egg grading purposes.
  1. The commission may establish a formula or method of prorating the cost of providing the poultry grading services among the various processors or processing plants using the services.
    1. Poultry and egg grading services shall be provided for only those processors or processing plants who make application, who shall comply with the rules and regulations promulgated by the commission, and who shall pay the cost of the services in accordance with regulations of the commission.
      1. Any poultry or egg processor or egg processing plant failing to pay the cost of the services in accordance with the regulations promulgated by the commission shall forfeit the right to have poultry graded until the costs are paid.
      2. All unpaid costs shall be collectible by the commission in the same manner provided by law for collection of delinquent gross receipts taxes.

History. Acts 1965, No. 49, § 2; A.S.A. 1947, § 78-317.

2-33-305. Intergovernmental cooperation.

The Arkansas Livestock and Poultry Commission is authorized to cooperate with the appropriate federal agencies and the appropriate agencies of this state and other states for the purpose of coordinating laws and rules governing the interstate movement of eggs and graded poultry with a view of safeguarding the public health and quality of these products and at the same time endeavoring to eliminate interstate trade barriers.

History. Acts 1965, No. 49, § 5; A.S.A. 1947, § 78-320.

2-33-306. Agreement with federal department.

The Arkansas Livestock and Poultry Commission is authorized to enter into a cooperative agreement with the United States Department of Agriculture whereby the commission will bill poultry and egg processors in Arkansas for poultry and egg grading and egg products inspection services performed by state and federal personnel and will collect charges for these services and remit a portion thereof to the United States Department of Agriculture for the services performed by personnel of the United States Department of Agriculture in accordance with the provisions of §§ 2-33-3012-33-305, 2-33-307, and laws amendatory thereto.

History. Acts 1975 (Extended Sess., 1976), No. 1216, § 1; A.S.A. 1947, § 78-320.1; reen. Acts 1987, No. 1025, § 1.

A.C.R.C. Notes. This section was reenacted by Acts 1987, No. 1025, § 1. Acts 1987, No. 834, provided that 1987 legislation reenacting acts passed in the 1976 Extended Session should not repeal any other 1987 legislation and that such other legislation would be controlling in the event of conflict.

2-33-307. Poultry and Egg Grading Fund.

  1. All funds received by the Arkansas Livestock and Poultry Commission for providing poultry and egg grading services shall be deposited into the State Treasury. Upon receipt of the funds, the Treasurer of State shall monthly credit them as special revenues to an account to be known as the “Poultry and Egg Grading Fund”, to be used for salaries, expenses, equipment, maintenance, operation, and administrative expenses of the Poultry and Egg Grading Program of the commission as provided by law.
  2. All funds collected by the commission from poultry and egg processors for poultry and egg grading and egg products inspection services shall be deposited into the State Treasury as special revenues and shall be credited to the Poultry and Egg Grading Fund to be used for funding the poultry and egg grading and egg products inspection program and to make payments to the United States Department of Agriculture for poultry and egg grading and poultry products inspection services performed by employees of the United States Department of Agriculture.

History. Acts 1965, No. 49, § 3; 1975 (Extended Sess., 1976), No. 1216, § 2; A.S.A. 1947, §§ 78-318, 78-320.2; reen. Acts 1987, No. 1025, § 2.

A.C.R.C. Notes. Part of this section was reenacted by Acts 1987, No. 1025, § 2. Acts 1987, No. 834, provided that 1987 legislation reenacting acts passed in the 1976 Extended Session should not repeal any other 1987 legislation and that such other legislation would be controlling in the event of conflict.

Publisher's Notes. This section may be affected by §§ 2-33-113, 19-5-302(8), and 19-6-301(34).

2-33-308. Overtime compensation.

The Department of Agriculture is hereby authorized to pay ordinary, customary, and necessary overtime compensation in accordance with rules promulgated by the Chief Fiscal Officer of the State to those employees, including egg and poultry grader supervisors, engaged in the inspection and grading of eggs and poultry products under the Arkansas Livestock and Poultry Commission's Poultry and Egg Grading Program.

History. Acts 1989 (1st Ex. Sess.), No. 192, § 22; 2019, No. 910, § 30.

Amendments. The 2019 amendment substituted “Department of Agriculture” for “Arkansas Livestock and Poultry Commission's Poultry and Egg Grading Program”, and added “under the Arkansas Livestock and Poultry Commission's Poultry and Egg Grading Program”.

Subchapter 4 — Other Divisions or Committees

2-33-401. [Repealed.]

A.C.R.C. Notes. Acts 2007, No. 153, § 3, provided:

“The following state agencies are abolished:

“(1) Advisory Board for Perinatal Health Services, created by § 20-7-116;

“(2) Advisory Committee on Educational Access to Technology, created by § 6-16-409;

“(3) Arkansas Classified Personnel Salaries Study Commission, created by § 6-17-808; and

“(4) Arkansas Dairy Committee, created by § 2-33-401.”

Publisher's Notes. This section, concerning the Arkansas Dairy Committee, was repealed by Acts 2007, No. 153, § 3. The section was derived from Acts 1997, No. 888, § 1.

Chapter 34 Brands and Marks

Research References

Am. Jur. 4 Am. Jur. 2d, Animals, §§ 6, 7.

C.J.S. 3B C.J.S., Animals, § 24 et seq.

Subchapter 1 — General Provisions

Cross References. County clerk recording when two judicial districts, § 14-15-901.

Fee for recording, § 21-6-406.

Penalty for altering brand of another with intent to steal, § 5-37-502.

2-34-101 — 2-34-105. [Repealed.]

Publisher's Notes. These sections, concerning earmark and brand to be recorded, age for branding and earmarking, brands or marks of minors, record of marks and brands, and rebranding or remarking purchased stock, were repealed by Acts 2017, No. 1011, §§ 19-23. The sections were derived from the following sources:

2-34-101. Rev. Stat., ch. 93, § 1; C. & M. Dig., § 333; Pope's Dig., § 348; A.S.A. 1947, § 78-801.

2-34-102. Rev. Stat., ch. 93, § 2; C. & M. Dig., § 334; Pope's Dig., § 349; A.S.A. 1947, § 78-802.

2-34-103. Rev. Stat., ch. 93, § 6; C. & M. Dig., § 338; Pope's Dig., § 353; A.S.A. 1947, § 78-806.

2-34-104. Rev. Stat., ch. 58, § 4; C. & M. Dig., § 336; Pope's Dig., § 351; A.S.A. 1947, § 78-804.

2-34-105. Rev. Stat., ch. 93, § 5; C. & M. Dig., § 337; Pope's Dig., § 352; A.S.A. 1947, § 78-805.

2-34-106. Disputes about earmarks or brands — Impounding of funds.

  1. If a dispute arises about an earmark or brand, it shall be decided by reference to the book of marks and brands kept by the clerk of the county court.
    1. A state-certified law enforcement officer or a livestock association in the state that is authorized to perform brand inspection services under 9 C.F.R. 201.86, as it existed on January 1, 2015, may order funds from the sale of an animal of questionable ownership held until ownership is established.
      1. If ownership of the animal is not established within thirty (30) days, the funds shall be sent to the Arkansas Livestock and Poultry Commission to be held for one (1) year from the date of receipt by the commission.
      2. If ownership of the animal cannot be ascertained during the one-year period stated in subdivision (b)(2)(A) of this section, then after the expiration of the one-year period, the funds shall be deposited into the Livestock and Poultry Fund Account.

History. Rev. Stat., ch. 93, § 3; C. & M. Dig., § 335; Pope's Dig., § 350; A.S.A. 1947, § 78-803; Acts 2015, No. 965, § 1; 2017, No. 258, § 1.

Amendments. The 2015 amendment added “Impounding of funds” in the section heading; added designation (a); substituted “If a dispute arises about an” for “If any dispute shall arise about any”; and added (b).

The 2017 amendment inserted “from the sale” in (b)(1).

2-34-107. [Repealed.]

Publisher's Notes. This section, concerning branding or misbranding with intent to defraud, was repealed by Acts 2017, No. 1011, § 24. The section was derived from Acts 2015, No. 965, § 2.

Subchapter 2 — Brand Registry

Publisher's Notes. Acts 2015, No. 965, § 3, deleted “Division of” preceding “Brand Registry” in the subchapter heading.

Effective Dates. Acts 2019, No. 910, § 6346(b): July 1, 2019. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that this act revises the duties of certain state entities; that this act establishes new departments of the state; that these revisions impact the expenses and operations of state government; and that the sections of this act other than the two uncodified sections of this act preceding the emergency clause titled ‘Funding and classification of cabinet-level department secretaries’ and ‘Transformation and Efficiencies Act transition team’ should become effective at the beginning of the fiscal year to allow for implementation of the new provisions at the beginning of the fiscal year. Therefore, an emergency is declared to exist, and Sections 1 through 6343 of this act being necessary for the preservation of the public peace, health, and safety shall become effective on July 1, 2019”.

2-34-201. Definitions.

As used in this subchapter:

  1. “Brand” means for purposes of ownership identification a permanent identification burned or frozen into the hide of a live animal with a hot iron or hot or frozen chemical in letters, numbers, or figures, each of which is at least three inches (3") in overall length or diameter and is to be considered in relation to its location on the animal; and
  2. “Livestock” and “animal” mean any bovine, horse, or mule.

History. Acts 1959, No. 179, § 1; A.S.A. 1947, § 78-807; Acts 1999, No. 14, § 1; 2015, No. 965, § 3; 2019, No. 378, § 5.

Amendments. The 2015 amendment inserted “for purposes of ownership identification” in (1); deleted (2), (3), and (4); and redesignated former (5) as (2).

The 2019 amendment substituted “bovine” for “cattle” in (2).

2-34-202. [Repealed.]

Publisher's Notes. This section, concerning penalty, was repealed by Acts 2017, No. 1011, § 25. The section was derived from Acts 1959, No. 179, § 4; A.S.A. 1947, § 78-810; Acts 2005, No. 1994, § 192; 2015, No. 965, § 3.

2-34-203. Conflicts of brands.

The Arkansas Livestock and Poultry Commission shall serve as an adjusting committee in the matter of determining conflicts of brands, and the decision of the committee shall be final.

History. Acts 1959, No. 179, § 2; A.S.A. 1947, § 78-808; Acts 2015, No. 965, § 3.

Publisher's Notes. When the Division of Brand Registry was created by Acts 1959, No. 179, it was part of the State Livestock Sanitary Board, whose functions, etc., were transferred to the Arkansas Livestock and Poultry Commission by Acts 1963, No. 87, § 10.

Amendments. The 2015 amendment deleted (a)(1), (a)(2), and designation (b); substituted “Arkansas Livestock and Poultry Commission” for “commission”; and rewrote the section heading.

2-34-204. [Repealed.]

Publisher's Notes. This section, concerning rules, was repealed by Acts 2017, No. 1011, § 26. The section was derived from Acts 1959, No. 179, § 2; A.S.A. 1947, § 78-808; Acts 2015, No. 965, § 3.

2-34-205. Custody of county brand records.

  1. All county brand records of the various counties of the state shall be property of the Arkansas Livestock and Poultry Commission, and it shall be unlawful for a county clerk to accept a brand for registry.
  2. The Department of Agriculture shall collect all county brand record books and place them in its office and preserve them as public records on behalf of the commission.
  3. The department shall furnish a record of any brand record in the county record books to any person for a reasonable fee determined by the department to offset the costs of furnishing the record.

History. Acts 1959, No. 179, § 3; A.S.A. 1947, § 78-809; Acts 2015, No. 965, § 3; 2017, No. 1011, § 27; 2019, No. 910, § 31.

Amendments. The 2015 amendment, in (a), deleted “Division of Brand Registry in the” preceding “Arkansas Livestock” and substituted “a” for “any” twice; substituted “commission” for “division” in (b) and (c); and substituted “reasonable fee determined by the Executive Director of the Arkansas Livestock and Poultry Commission to offset the costs of furnishing the record” for “fee of one dollar ($1.00) per brand” in (c).

The 2017 amendment deleted “the Executive Director of” following “determined by” in (c).

The 2019 amendment, in (b), substituted “Department of Agriculture” for “commission” and added “on behalf of the commission”; and substituted “department” for “commission” twice in (c).

2-34-206. State Brand Book.

  1. The Arkansas Livestock and Poultry Commission shall publish the State Brand Book, which shall contain a facsimile of each brand and mark that is registered with the commission showing the name and address of the owner, together with the pertinent laws and rules pertaining to registration and reregistration of brands and marks.
  2. The commission, on or before January 1, 1960, and every five (5) years thereafter, shall publish the State Brand Book showing all the brands recorded with the commission before December 1, 1959, and every five (5) years thereafter.
  3. Supplements to the State Brand Book shall be published annually.

History. Acts 1959, No. 179, §§ 2, 5, 7; A.S.A. 1947, §§ 78-808, 78-811, 78-813; Acts 2015, No. 965, § 3; 2017, No. 1011, § 28.

Publisher's Notes. Acts 1959, No. 179, § 5, provided, in part, that immediately upon receipt of the brand record books for the respective counties, the Director of Brand Registry should notify each holder of a brand that the division was in existence.

Acts 1959, No. 179, § 7, provided, in part, that all brand applications passed upon and approved should be sorted in a systematic manner and published in the first edition of the State Brand Book, which was to be published on or before January 1, 1960.

Amendments. The 2015 amendment, in (a), inserted “Executive”, deleted “Division of Brand Registry in the” twice preceding “Arkansas Livestock”, deleted “and every” following “each”, and deleted “and regulations” following “rules”; in (b), inserted “executive”, substituted “shall publish” for “will have published”, and “commission before” for “division prior to”; and substituted “annually” for “every three (3) months” in (c).

The 2017 amendment deleted “Executive Director of the” preceding “Arkansas Livestock” in (a); and substituted “The commission” for “The executive director” in (b).

2-34-207. Notification to registrants.

Before publication of a revised State Brand Book, each registered brand owner or assignee in the previous book or supplements shall be notified in writing that his or her brand has terminated and that the brand must be renewed if the person desires to keep the brand.

History. Acts 1959, No. 179, § 7; A.S.A. 1947, § 78-813; Acts 2015, No. 965, § 3.

Amendments. The 2015 amendment substituted “Before” for “Prior to”, “a revised” for “any revised”, “each” for “all”, “owner or assignee” for “owners and assignees”, deleted “thereto” following “supplements”, and substituted “his or her” for “their”.

2-34-208. Registration of brands.

  1. A person desiring to adopt a brand or to continue to use a brand shall apply to the Arkansas Livestock and Poultry Commission for the registration of the brand in the manner prescribed in this section.
  2. The commission shall prepare a standard form, which shall be made available to those persons who desire to apply for a brand.
  3. An applicant shall show a front, rear, left, and right side view of the animals upon which the brand will be eligible for registry.
  4. The brand location shall be designated in the following body regions: head, right jaw, neck, shoulder, rib and right and left jaw, neck, shoulder, rib and neck, right and left hip, thigh, and breeching.
  5. The applicant shall select at least three (3):
    1. Distinct brands and list them in the preferred order; and
    2. Locations on the animal and list them in preferred order.
  6. Applications for registration or reregistration shall be properly signed and notarized and accompanied by a reasonable fee to be determined by the commission to offset the costs of administering this section.
  7. A brand, if approved and accepted by the commission for registry, shall be of good standing during the five-year period in which it is recorded.

History. Acts 1959, No. 179, §§ 4, 5, 7; A.S.A. 1947, §§ 78-810, 78-811, 78-813; Acts 2015, No. 965, § 3; 2017, No. 1011, § 29.

Publisher's Notes. Acts 1959, No. 179, § 6, provided that, from the effective date of the act until September 1, 1959, the Division of Brand Registry would accept brand registration applications only from persons having brands registered in the county brand books. It also provided that, from September 1 until December 1, 1959, the division would accept applications from any persons desiring to register brands and that the division would check the applications immediately for conflicts and, if found, return the fee advanced along with the application to the applicant.

Amendments. The 2015 amendment, in (a), substituted “apply” for “make application” and deleted “Division of Brand Registry in the” preceding “Arkansas Livestock and Poultry Commission”; substituted “commission” for “division” in (b); substituted “An applicant” for “The applicants” in (c); in (e), substituted “at least three (3)” for “not less than three (3)” and inserted designations (1) and (2); substituted “reasonable fee to be determined by the executive director to offset the costs of administering this section” for “fee of five dollars ($5.00)” in (f); and substituted “commission” for “division” in (g).

The 2017 amendment deleted “the Executive Director of” following “determined by” in (f).

2-34-209. Brands reserved to state.

  1. There is reserved to the state the brands of “B”, “S”, and “T” on the left jaw of any cattle, and it is unlawful for a person to use the brands of “B”, “S”, and “T”.
  2. Cattle carrying these brands shall be:
    1. Claimed as reactors to:
      1. Brucellosis abortus, known as Bang’s disease; or
      2. Tuberculosis, known as T.B.; or
    2. Designated for slaughter.

History. Acts 1959, No. 179, § 10; A.S.A. 1947, § 78-816; Acts 2015, No. 965, § 3.

Amendments. The 2015 amendment, in (a), inserted the first occurrence of “‘S’” and substituted “is unlawful” for “shall be unlawful”, “a person” for “any person”, and the second occurrence of “the brands of ‘B’, ‘S’, and ‘T’” for “them”; inserted designations (b)(1), (b)(1)(A), and (b)(1)(B); and added (b)(2).

2-34-210. Sale of book.

  1. The State Brand Book and all supplements to the State Brand Book, for a five-year period, shall be sold to the public for a reasonable fee to be determined by the Arkansas Livestock and Poultry Commission to offset the costs of producing the State Brand Book.
  2. A supplement to the State Brand Book shall be sold to the public for a reasonable fee determined by the Department of Agriculture to offset the costs of producing the supplement.
  3. The county clerk and the sheriff of each county shall receive copies of all State Brand Books and supplements without cost to their respective county.

History. Acts 1959, No. 179, § 8; A.S.A. 1947, § 78-814; Acts 2015, No. 965, § 3; 2017, No. 1011, § 30; 2019, No. 378, § 6; 2019, No. 910, § 32.

Publisher's Notes. Acts 1959, No. 179, § 8, provided, in part, that the original State Brand Book would sell for five dollars ($5.00).

Amendments. The 2015 amendment, in (a), substituted “to the State Brand Book” for “thereto” and “a reasonable fee to be determined by the executive director to offset the costs of producing the book” for “ten dollars ($10.00)”; and substituted “to the public for a reasonable fee determined by the executive director to offset the costs of producing the book” for “at fifty cents (50¢) each” in (b).

The 2017 amendment deleted “the Executive Director of” following “be determined by” in (a).

The 2019 amendment by No. 378 inserted “copies of” in (c).

The 2019 amendment by No. 910 substituted “Department of Agriculture” for “Deputy Director of the Arkansas Livestock and Poultry Commission” in (b).

2-34-211. Book as evidence of ownership.

  1. Brands appearing in the current edition of the State Brand Book or supplements to the current edition of the State Brand Book shall be prima facie evidence of ownership and shall take precedence over brands of like kind should the question of ownership arise.
  2. The owner whose brand does not appear in the State Brand Book or supplement to the State Brand Book shall produce evidence to establish his or her title to the property in the event of controversy.

History. Acts 1959, No. 179, § 9; A.S.A. 1947, § 78-815; Acts 2015, No. 965, § 3.

Amendments. The 2015 amendment substituted “to the current edition of the State Brand Book” for “thereto” in (a); and substituted “to the State Brand Book” for “thereto” in (b).

2-34-212. Transfers of registered brands.

    1. Only brands appearing in the current edition of the State Brand Book and the supplements to the current edition of the State Brand Book shall be subject to sale, assignment, transfer, devise, or bequest, the same as other personal property.
      1. The transfer of title shall be recorded with the Arkansas Livestock and Poultry Commission.
      2. The fee for recording a transfer of title shall be determined by the commission based on the costs of administering this section.
    1. All persons selling livestock branded with their brand recorded in a current edition of the State Brand Book or supplements to the current edition of the State Brand Book shall execute a written transfer of ownership to the purchaser.
    2. If the purchaser suffers damages due to seller's failure to execute a written transfer of ownership, then the seller is liable for the damages decided upon by a court of competent jurisdiction.

History. Acts 1959, No. 179, §§ 10, 11; A.S.A. 1947, §§ 78-816, 78-817; Acts 2015, No. 965, § 3; 2017, No. 1011, § 31.

Amendments. The 2015 amendment substituted “to the current edition of the State Brand Book” for “thereto” in (a)(1) and (b)(1); redesignated former (a)(2) as (a)(2)(A) and (a)(2)(B); in (a)(2)(A), substituted “must” for “shall” and deleted “Division of Brand Registry in the” preceding “Arkansas Livestock and Poultry Commission”; in (a)(2)(B), substituted “a transfer of title” for “it” and “determined by the Executive Director of the Arkansas Livestock and Poultry Commission based on the costs of administering this section” for “one dollar ($1.00)”; and, in (b)(2), substituted “If the purchaser suffers” for “Should the purchaser suffer any”, “is liable for the damages” for “shall be liable for any and all damages”, and “a court” for “any court”.

The 2017 amendment deleted “the Executive Director of” following “be determined by” in (a)(2)(B).

2-34-213. [Repealed.]

Publisher's Notes. This section, concerning Brand Registry Fund, was repealed by Acts 2017, No. 1011, § 32. The section was derived from Acts 1961, No. 204, § 1; 1969, No. 361, § 1; A.S.A. 1947, § 78-818; Acts 2015, No. 965, § 3.

2-34-214. Contracts for administration.

    1. The Arkansas Livestock and Poultry Commission shall enter into a contract with a private entity that operates primarily as a livestock association to administer the registration and recording of marks and brands under this subchapter.
    2. When the commission enters into a contract under this subsection, the commission shall:
      1. Compensate the private entity for its services;
      2. Appoint the private entity as an agent of the commission for purposes of receiving fees allowed under this subchapter; and
      3. Except as provided in subsection (b) of this section, direct the private entity to perform duties assigned to the commission or the Deputy Director of the Arkansas Livestock and Poultry Commission under this subchapter.
  1. The commission shall not contract with a private entity to promulgate rules or set fees under this subchapter.
  2. Records concerning the administration of this subchapter are subject to the Freedom of Information Act of 1967, § 25-19-101 et seq., regardless of whether the records are in the custody or control of the commission or a private entity acting as an agent of the commission under this section.
  3. A private entity entering into a contract with the commission under this section shall:
    1. Make a monthly accounting to the commission of all funds received by the private entity as an agency of the commission under this section; and
    2. File with the commission a surety bond of a corporate surety authorized to do business in this state in an amount determined by the commission, conditioned on the faithful performance of the private entity's duties and obligations as an agent of the commission under this subchapter.

History. Acts 2015, No. 965, § 4; 2017, No. 1011, § 33.

Amendments. The 2017 amendment deleted “Executive Director of the” preceding “Arkansas Livestock” in (a)(1); substituted “commission” for “executive director” twice in the introductory language of (a)(2), once in (b) and once in the introductory language of (d).

Subchapter 3 — Drovers

2-34-301 — 2-34-304. [Repealed.]

Publisher's Notes. This subchapter, concerning drovers, was repealed by Acts 2017, No. 1011, § 34. The sections were derived from the following sources:

2-34-301. Acts 1868, No. 29, § 5, p. 101; C. & M. Dig., § 264; Pope's Dig., § 278; A.S.A. 1947, § 78-1005; Acts 2005, No. 1994, § 18.

2-34-302. Acts 1868, No. 29, § 1, p. 101; C. & M. Dig., § 260; Pope's Dig., § 274; A.S.A. 1947, § 78-1001.

2-34-303. Acts 1868, No. 29, § 2, p. 101; C. & M. Dig., § 261; Pope's Dig., § 275; A.S.A. 1947, § 78-1002; Acts 2015, No. 965, § 5.

2-34-304. Acts 1868, No. 29, §§ 3, 4, p. 101; C. & M. Dig., §§ 262, 263; Pope's Dig., §§ 276, 277; A.S.A. 1947, §§ 78-1003, 78-1004.

Chapter 35 Marketing, Sale, and Transportation

Research References

C.J.S. 3 C.J.S., Agri., § 175 et seq.

Subchapter 1 — General Provisions

[Reserved.]

Subchapter 2 — Delivering, Transporting, or Selling of Livestock

2-35-201 — 2-35-215. [Repealed.]

Publisher's Notes. This subchapter, concerning delivering, transporting, or selling of livestock, was repealed by Acts 2017, No. 1011, § 35. The sections were derived from the following sources:

2-35-201. Acts 1937, No. 206, § 7; Pope’s Dig., § 3234; A.S.A. 1947, § 78-907.

2-35-202. Acts 1937, No. 206, § 6; Pope's Dig., § 3233; A.S.A. 1947, § 78-906.

2-35-203. Acts 1937, No. 206, § 14; Pope's Dig., § 3241; A.S.A. 1947, § 78-914; Acts 2005, No. 1994, § 234.

2-35-204. Acts 1937, No. 206, §§ 1, 2; Pope's Dig., §§ 3228, 3229; A.S.A. 1947, §§ 78-901, 78-902.

2-35-205. Acts 1937, No. 206, § 12; Pope's Dig., § 3239; A.S.A. 1947, § 78-912.

2-35-206. Acts 1937, No. 206, § 3; Pope's Dig., § 3230; A.S.A. 1947, § 78-903.

2-35-207. Acts 1937, No. 206, § 13; Pope's Dig., § 3240; A.S.A. 1947, § 78-913.

2-35-208. Acts 1937, No. 206, §§ 4, 9; Pope's Dig., §§ 3231, 3236; A.S.A. 1947, §§ 78-904, 78-909.

2-35-209. Acts 1937, No. 206, § 5; Pope's Dig., § 3232; A.S.A. 1947, § 78-905.

2-35-210. Acts 1937, No. 206, § 10; Pope's Dig., § 3237; A.S.A. 1947, § 78-910.

2-35-211. Acts 1937, No. 206, § 11; Pope's Dig., § 3238; A.S.A. 1947, § 78-911.

2-35-212. Acts 1937, No. 206, § 8; Pope's Dig., § 3235; A.S.A. 1947, § 78-908.

2-35-213. Acts 1957, No. 227, §§ 1, 2; A.S.A. 1947, §§ 78-915, 78-916.

2-35-214. Acts 1981, No. 770, § 20; A.S.A. 1947, § 78-917.

2-35-215. Acts 1923 (1st Ex. Sess.), No. 38, §§ 1-3.

Subchapter 3 — Arkansas Beef Council

Publisher's Notes. Acts 1987, No. 3, which is codified as § 2-35-401 et seq., provides for the collection of the federal assessment of $1.00 per head on cattle sold in the state for the support of a beef promotion and research program.

Cross References. Powers and duties of the Director of the Department of Finance and Administration and department, § 26-17-201 et seq.

Effective Dates. Acts 1983, No. 160, § 13: Feb. 14, 1983. Emergency clause provided: “It is hereby found and determined by the General Assembly that this act requires an extended period of time to fully implement; that funds generated by this act for promotion, market development, research, and other activities are needed at the earliest possible date; and that this act is necessary to provide a mechanism for enhancing Arkansas' cattle industry through promotional and developmental projects. Therefore, an emergency is hereby declared to exist and this act being immediately necessary for the efficient and effective implementation of this program shall be in full force and effect from and after its passage and approval.”

Acts 1997, No. 250, § 258: Feb. 24, 1997. Emergency clause provided: “It is hereby found and determined by the General Assembly that Act 1211 of 1995 established the procedure for all state boards and commissions to follow regarding reimbursement of expenses and stipends for board members; that this act amends various sections of the Arkansas Code which are in conflict with the Act 1211 of 1995; and that until this cleanup act becomes effective conflicting laws will exist. Therefore an emergency is declared to exist and this act being immediately necessary for the preservation of the public peace, health and safety shall become effective on the date of its approval by the Governor. If the bill is neither approved nor vetoed by the Governer [sic], it shall become effective on the expiration of the period of time during which the Governor may veto the bill. If the bill is vetoed by the Governor and the veto is overridden, it shall become effective on the date the last house overrides the veto.”

Acts 2019, No. 910, § 6346(b): July 1, 2019. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that this act revises the duties of certain state entities; that this act establishes new departments of the state; that these revisions impact the expenses and operations of state government; and that the sections of this act other than the two uncodified sections of this act preceding the emergency clause titled ‘Funding and classification of cabinet-level department secretaries’ and ‘Transformation and Efficiencies Act transition team’ should become effective at the beginning of the fiscal year to allow for implementation of the new provisions at the beginning of the fiscal year. Therefore, an emergency is declared to exist, and Sections 1 through 6343 of this act being necessary for the preservation of the public peace, health, and safety shall become effective on July 1, 2019”.

2-35-301. Purpose.

The purpose of this subchapter is to promote the growth and development of the beef cattle industry in Arkansas by research, promotion, and market development and thereby promote the general welfare of the people of Arkansas.

History. Acts 1983, No. 160, § 1; A.S.A. 1947, § 78-1901.

2-35-302. Penalty.

    1. A buyer who fails to file a report or pay any assessment within a required time set by the Director of the Department of Finance and Administration shall forfeit to the director a penalty of five percent (5%) of the assessment determined to be due plus one percent (1%) for each month of delay, or fraction of a month, after the first month after the report was required to be filed or the assessment became due.
    2. The penalty shall be paid to the director and shall be disposed of by him or her in the same manner as funds derived from payment of assessments imposed in this subchapter.
  1. The director shall collect the penalty levied in this section, together with the delinquent assessment, by any or all of the following methods:
    1. Voluntary payment by the person liable;
    2. Legal proceedings instituted in a court of competent jurisdiction; or
    3. Injunctive relief to enjoin any buyer owing the assessment or penalty from operating his or her business or engaging in business as a buyer of cattle until the delinquent assessment or penalty is paid.
  2. Any person required to pay the assessment provided for in this subchapter who refuses to allow full inspection of the records relating to the liability of the person for the assessment imposed in this subchapter or who shall hinder or in any way delay or prevent inspection shall be guilty of a violation and upon conviction shall be punished by a fine not exceeding five hundred dollars ($500).

History. Acts 1983, No. 160, § 9; A.S.A. 1947, § 78-1909; Acts 2005, No. 1994, § 19.

Amendments. The 2005 amendment substituted “violation” for “misdemeanor” in (c).

2-35-303. Creation — Members — Organization.

  1. The Arkansas Beef Council is created.
    1. The council shall be composed of seven (7) members appointed by the Governor and confirmed by the Senate as follows:
      1. Three (3) cattle producer members shall represent the Arkansas Farm Bureau Federation and shall be appointed from a list of names submitted by the board of directors of that organization;
      2. Three (3) cattle producer members shall represent the Arkansas Cattlemen's Association and shall be appointed from a list of names submitted by the board of directors of that organization; and
      3. One (1) member shall be an active Arkansas livestock market operator who shall be appointed from the state at large.
    2. Each year, not less than thirty (30) days before the expiration of the terms of the current council members whose terms expire in that year, the organizations named shall submit to the Governor two (2) nominees for each position to be filled on the council from the respective organizations. The Governor shall appoint a succeeding member to the council from each organization's list of nominees.
    3. Each member selected shall serve for a term of three (3) years and until his or her successor is duly selected as provided in this section.
    4. Vacancies in any unexpired term shall be filled by the Governor for the remainder of the unexpired term. The member appointed to fill the vacancy shall represent the same organization as the person whose term is unexpired.
  2. Members of the council shall meet and organize immediately after their appointment and shall elect a chair, a vice chair, and a secretary-treasurer from the membership of the council whose duties shall be those customarily exercised by those officers or specifically designated by the council.
  3. The council may establish rules for its own government and for the administration of the affairs of the council.

History. Acts 1983, No. 160, § 2; A.S.A. 1947, § 78-1902.

2-35-304. Levy of assessment on cattle.

    1. Within ninety (90) days after February 14, 1983, the Arkansas Beef Council shall cause an election to be held on the question of the levy of an assessment of twenty-five cents (25¢) per head on all cattle sold in the state.
    2. The election shall be held at the offices of the United States Farm Service Agency in each county in the state.
    3. The council shall set the date for conducting the election in each county, shall furnish ballots for the election, and shall prescribe voting procedures for the election.
    4. Each cattle owner or producer who owned or produced cattle in the year immediately preceding the election may vote in the election.
    1. If a majority of the cattle owners and producers in the state voting at the election vote for the levy of an assessment of twenty-five cents (25¢) per head on cattle sold in the state, the assessment shall be applicable to all sales made on and after a date specified by the council. The date shall not be later than ninety (90) days after certification of the results of the election.
    2. The assessment shall be a continuing levy until either terminated by the council or until another election is held at which a majority of the cattle owners and producers in the state vote against the levy.
    1. When petitions containing the signatures of twenty percent (20%) of the cattle owners and producers in the state, as determined by the latest available agricultural census, are filed with the council requesting that the question of continuing the per-head assessment be submitted to a vote of the cattle owners and producers, the council shall cause an election to be held within ninety (90) days after the filing of the petitions.
    2. The election shall be conducted in the same manner as the initial election held on the question of the levy of the assessment.
    3. If a majority of the owners and producers voting at the election vote against the levy of the assessment, the assessment shall not be levied unless and until the levy is thereafter approved at an election called by the council.
  1. If the federal Beef Promotion and Research Act of 1985 and the administrative orders and rules adopted under it are discontinued for any reason, the assessment of twenty-five cents (25¢) per head of cattle sold in this state shall be reactivated the same as if the national program had never existed, and there is levied without any election an additional assessment of seventy-five cents (75¢) per head of cattle sold in this state to be collected as provided in § 2-35-305 and disposed of as provided in § 2-35-308.
    1. Within ninety (90) days after beginning the collection of the seventy-five-cent assessment, the council shall cause an election to be held on the question of the levy of an assessment of seventy-five cents (75¢) per head on all cattle sold in the state.
    2. The election shall be held in the manner prescribed in subsections (a)-(c) of this section.
    1. If a majority of the cattle owners and producers in the state voting at the election vote for the levy of the additional seventy-five cents (75¢) per head on cattle sold in the state, the assessment shall continue until either terminated by the council or until another election is held at which a majority of the cattle owners and producers in the state vote against the levy.
    2. If a majority of the cattle owners and producers in the state voting at the election vote against the levy of the additional seventy-five cents (75¢) per head on cattle sold in the state, the assessment shall be discontinued and shall not be levied again unless and until the levy is thereafter approved at an election called by the council.

History. Acts 1983, No. 160, § 3; A.S.A. 1947, § 78-1903; Acts 2003, No. 1331, §§ 1, 2.

U.S. Code. The federal Beef Promotion and Research Act of 1985, referred to in (d), is codified as 7 U.S.C. § 2901 et seq.

2-35-305. Collection by purchasers.

    1. The assessment levied under this subchapter shall be collected by each purchaser of cattle in Arkansas, whether or not the purchaser is a resident of Arkansas.
    2. A purchaser shall monthly report and remit the assessments collected to the Director of the Department of Finance and Administration at the time, in the manner, and on forms prescribed by the director.
  1. For purposes of this subchapter, purchasers or buyers of cattle shall include, but not be limited to:
    1. Livestock auction markets;
    2. Packers;
    3. Order buyers, who are registered or licensed, buying on order and not through a public market; and
    4. Individual organizations, groups, or firms, in the case of organized sales, special sales, breed association sales, and feeder calf sales.

History. Acts 1983, No. 160, § 4; A.S.A. 1947, § 78-1904.

2-35-306. Records and reports.

  1. The Director of the Department of Finance and Administration is authorized and directed to adopt appropriate rules regarding records to be kept by cattle buyers and regarding reporting and remittance of the assessment levied in this subchapter and to prescribe forms upon which reports are to be made.
  2. The director may, by rule, require the reports to contain such information as he or she shall deem necessary or appropriate to assure the proper enforcement of this subchapter and the efficient and effective collection of the assessment levied under it.

History. Acts 1983, No. 160, § 5; A.S.A. 1947, § 78-1905.

2-35-307. Inspection of records and rules.

  1. Records maintained by cattle buyers under the requirements of this subchapter or rules of the Arkansas Beef Council adopted under it shall be made available for inspection at any reasonable time upon written request by the Director of the Department of Finance and Administration or any duly authorized agent or representative.
  2. Buyers, at such times as the director may require, shall submit reports or other documents containing information deemed necessary for the efficient collection of the assessment imposed in this subchapter.
  3. The director shall have the power to cause any duly authorized agent or representative to enter at reasonable times upon the premises of buyers of cattle and examine or cause to be examined by the agent any records which may pertain to the payment of the assessment or enforcement of the provisions of this subchapter.

History. Acts 1983, No. 160, § 6; A.S.A. 1947, § 78-1906.

2-35-308. Disposition of funds.

  1. The Director of the Department of Finance and Administration shall deposit all assessments and penalties collected under this subchapter in the State Treasury.
    1. After deducting three percent (3%) for credit to the Constitutional and Officers Fund and the State Central Services Fund, the Treasurer of State shall credit the remainder to the Arkansas Beef Council Fund, which is created on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State.
    2. All funds so credited to the Arkansas Beef Council Fund shall be used in such manner as the council deems appropriate for:
      1. Arkansas beef promotion and research;
      2. The operation and maintenance of the council office; and
      3. Payment of expenses of the board members in accordance with § 25-16-901 et seq.

History. Acts 1983, No. 160, § 7; A.S.A. 1947, § 78-1907; Acts 1997, No. 250, § 7.

2-35-309. Program to enhance cattle industry.

  1. The Arkansas Beef Council shall plan and conduct or cause to be conducted a program of promotion, market development, research, or related beef activities designed to enhance the cattle industry in Arkansas.
    1. The council is authorized to use the funds derived from the assessment imposed in this subchapter for these purposes, including basic administration expenses of the plan.
    2. Use of these funds may be applied as prescribed in this section within or without the State of Arkansas, including regional, national, and international applications.
    3. The funds may also be used to defray costs of referenda.

History. Acts 1983, No. 160, § 10; A.S.A. 1947, § 78-1910.

2-35-310. Refunds.

Any cattle producer may request and receive a refund of the amount deducted from the sale of his or her cattle if he or she makes a written application with the Secretary of the Department of Finance and Administration within forty-five (45) days from the date of sale, supported by copies of sales slips signed by the buyer and, if the application is filed before the annual accounting is made of the funds, not later than July 1 each year.

History. Acts 1983, No. 160, § 8; A.S.A. 1947, § 78-1908; Acts 2019, No. 910, § 3293.

Amendments. The 2019 amendment substituted “Secretary of the Department of Finance and Administration” for “Director of the Department of Finance and Administration”.

Subchapter 4 — Beef Promotion and Research

Effective Dates. Acts 1987, No. 3, § 6: Jan. 22, 1987. Emergency clause provided: “It is hereby found and determined by the General Assembly that it is essential to the best interests of the beef industry in the state that legislation be enacted to comply with and conform to the provisions of the federal law known as the Beef Promotion and Research Act of 1985, and the federal administrative orders and rules issued pursuant to that act, that this act is designed to enable the Arkansas Beef Council to conform to and comply with the federal law and should be given effect immediately. Therefore, an emergency is hereby declared to exist and this Act being necessary for the preservation of the public peace, health, and safety shall be in full force and effect from and after its passage and approval.”

Acts 1997, No. 250, § 258: Feb. 24, 1997. Emergency clause provided: “It is hereby found and determined by the General Assembly that Act 1211 of 1995 established the procedure for all state boards and commissions to follow regarding reimbursement of expenses and stipends for board members; that this act amends various sections of the Arkansas Code which are in conflict with the Act 1211 of 1995; and that until this cleanup act becomes effective conflicting laws will exist. Therefore an emergency is declared to exist and this act being immediately necessary for the preservation of the public peace, health and safety shall become effective on the date of its approval by the Governor. If the bill is neither approved nor vetoed by the Governer [sic], it shall become effective on the expiration of the period of time during which the Governor may veto the bill. If the bill is vetoed by the Governor and the veto is overridden, it shall become effective on the date the last house overrides the veto.”

Acts 2019, No. 910, § 6346(b): July 1, 2019. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that this act revises the duties of certain state entities; that this act establishes new departments of the state; that these revisions impact the expenses and operations of state government; and that the sections of this act other than the two uncodified sections of this act preceding the emergency clause titled ‘Funding and classification of cabinet-level department secretaries’ and ‘Transformation and Efficiencies Act transition team’ should become effective at the beginning of the fiscal year to allow for implementation of the new provisions at the beginning of the fiscal year. Therefore, an emergency is declared to exist, and Sections 1 through 6343 of this act being necessary for the preservation of the public peace, health, and safety shall become effective on July 1, 2019”.

2-35-401. Purpose.

  1. It is found and determined by the General Assembly that:
    1. The Arkansas law which creates the Arkansas Beef Council authorizes an assessment of twenty-five cents (25¢) per head on all cattle sold in the state;
    2. Since the enactment of the Arkansas law, the United States Congress and the United States Department of Agriculture have established a national beef promotion and research program under which there is an assessment of one dollar ($1.00) per head on all cattle sold;
    3. Under the national program, a qualified state beef council is authorized to retain fifty cents (50¢) of each one dollar ($1.00) per head assessment for financing a state beef promotion and research program if authorized by state law;
    4. The one dollar ($1.00) per head national assessment is currently required to be collected but is subject to a referendum within twenty-two (22) months after the issuance of the beef promotion and research order by the United States Secretary of Agriculture;
    5. It is essential that appropriate legislation be enacted in Arkansas to provide for the collection of the one dollar ($1.00) per head assessment and the retention by the state of fifty cents (50¢) of each one dollar ($1.00) assessment during the interim from the date of the order until the referendum process is completed and thereafter in the event the producers voting at the referendum approve a continuation of the assessment; to further assure that in the event the producers voting at the referendum vote against continuing the one dollar ($1.00) per head assessment, the present Arkansas law providing for an assessment of twenty-five cents (25¢) per head will be automatically reactivated.
  2. Therefore, it is the intent and purpose of this subchapter to suspend the collection of the twenty-five cents (25¢) per head assessment provided for in § 2-35-301 et seq. and to provide for the collection of the one dollar ($1.00) per head national assessment levied for beef promotion and research so long as the national program continues in effect, with fifty cents (50¢) of the assessment to be retained for the Arkansas Beef Council, and to provide that if the producers voting at the referendum provided for in the Beef Promotion and Research Act of 1985 and the administrative order issued pursuant thereto vote to discontinue the one dollar ($1.00) per head national assessment, then the provisions of § 2-35-301 et seq. and the assessment of twenty-five cents (25¢) per head of cattle sold in this state will be reactivated the same as if the national program had never existed.

History. Acts 1987, No. 3, § 1.

U.S. Code. The federal Beef Promotion and Research Act of 1985, referred to in this section, is codified as 7 U.S.C. § 2901 et seq.

2-35-402. Applicability.

    1. The provisions of this subchapter shall remain in effect so long as the national beef promotion and research program established by the federal Beef Promotion and Research Act of 1985 and the administrative orders and rules issued under that act continue in effect.
    2. If the program is terminated as a result of the referendum provided for in that act or for any other reason, the provisions of this subchapter shall expire. Thereafter, the provisions of § 2-35-301 et seq. concerning the levy and collection of an assessment on cattle sold in this state to support the Arkansas Beef Promotion and Research Program shall be enforced.
  1. The provisions of this subchapter shall not repeal or modify the provisions of § 2-35-301 et seq., but the provisions of § 2-35-301 et seq., so far as they relate to the levy and collection of an assessment of twenty-five cents (25¢) per head on cattle sold in this state, shall be suspended until such time as the national beef promotion and research program is terminated.

History. Acts 1987, No. 3, § 5.

U.S. Code. The federal Beef Promotion and Research Act of 1985, referred to in this section, is codified as 7 U.S.C. § 2901 et seq.

2-35-403. Assessment — Conduct of program.

  1. The assessment levied under the national beef promotion and research program in the amount of one dollar ($1.00) per head of cattle sold shall be collected, reported, and remitted to the Secretary of the Department of Finance and Administration by the persons, in the manner, and at the times prescribed by the federal Beef Promotion and Research Act of 1985 and the administrative orders and rules issued under the provisions of that act.
  2. Records concerning cattle sales and the collection of assessments shall be maintained.
  3. The national beef promotion and research program shall in all respects be conducted in Arkansas in conformity with federal law, orders, and regulations regarding the program so long as the national beef promotion and research program is in effect.

History. Acts 1987, No. 3, § 2; 2019, No. 910, § 3294.

Amendments. The 2019 amendment substituted “Secretary of the Department of Finance and Administration” for “Director of the Department of Finance and Administration” in (a).

U.S. Code. The federal Beef Promotion and Research Act of 1985, referred to in this section, is codified as 7 U.S.C. § 2901 et seq.

2-35-404. Rules.

The Secretary of the Department of Finance and Administration is authorized to adopt appropriate rules not inconsistent with this subchapter or the federal law, orders, and rules regarding the national beef promotion and research program as he or she may deem necessary to carry out the intent and purposes of, and to assure compliance with, this subchapter and the federal laws, orders, and rules relating to the national beef promotion and research program.

History. Acts 1987, No. 3, § 3; 2019, No. 910, § 3295.

Amendments. The 2019 amendment substituted “Secretary of the Department of Finance and Administration” for “Director of the Department of Finance and Administration”.

2-35-405. Disposition of funds.

  1. The Secretary of the Department of Finance and Administration shall deposit into the State Treasury all funds collected by him or her under this subchapter and the federal Beef Promotion and Research Act of 1985 and the federal administrative orders and rules issued under that act. Beginning with funds collected by him or her on and after the first day of the month next following January 22, 1987, the Treasurer of State shall:
    1. Credit to the National Beef Promotion Account fifty cents (50¢) of each one dollar ($1.00) per head assessment collected;
    2. Deduct three percent (3%) of the remaining funds for credit to the Constitutional Officers Fund and the State Central Services Fund; and
    3. Credit the remainder of these funds to the State Beef Promotion Account.
    1. Funds credited to the National Beef Promotion Account shall be remitted by the Arkansas Beef Council to the Cattlemen's Beef Promotion and Research Board established in the federal Beef Promotion and Research Act of 1985 in the manner prescribed in that act and in administrative orders and rules issued under that act.
    2. Funds credited to the State Beef Promotion Account shall be used in such manner as the council deems appropriate for Arkansas beef promotion and research and for the operation and maintenance of the council's office and the payment of expenses of the council members in accordance with § 25-16-901 et seq.

History. Acts 1987, No. 3, § 4; 1997, No. 250, § 8; 2019, No. 910, § 3296.

Amendments. The 2019 amendment substituted “Secretary of the Department of Finance and Administration” for “Director of the Department of Finance and Administration” in (a).

U.S. Code. The federal Beef Promotion and Research Act of 1985, referred to in this section, is codified as 7 U.S.C. § 2901 et seq.

2-35-406. National Beef Promotion Account.

There is created a National Beef Promotion Account in the Arkansas Beef Council Fund.

History. Acts 1987, No. 3, § 4.

2-35-407. State Beef Promotion Account.

There is created a State Beef Promotion Account in the Arkansas Beef Council Fund.

History. Acts 1987, No. 3, § 4.

Chapter 36 Livestock Shows and Fairs

Subchapter 1 — General Provisions

Preambles. Acts 1973, No. 317 contained a preamble which read:

“Whereas, the distribution of state funds to county and district fair associations for paying premiums and awards at county fairs has heretofore been made based on that part of the total funds appropriated for the purpose that the population of the county bears to the total population of all counties in which qualifying associations are located irrespective of the size and quality of the fair held in such county and this has resulted in a wide variation in the amounts of state funds received by the various associations and a discrepancy over the state in the amount an award winner receives for an entry; and

“Whereas, the county and district fairs stand as a medium for the exchange of ideas and methods and should develop on the concept of an agricultural and industrial ‘convention’ and should provide encouragement and stimulation to the Arkansas agricultural, industrial, and livestock industries; and the state should recognize achievement and provide incentive for improvement in the quality of county fairs by the disbursement of state funds on a graded basis of fair quality;

“Now therefore … .”

Effective Dates. Acts 1973, No. 317, § 14: Mar. 13, 1973. Emergency clause provided: “It is hereby found and determined by the General Assembly that the present method of disbursing state funds appropriated for the development of agricultural, industrial and livestock industries in the state is based upon the population of the county in which county fairs are held; that it is in the best interests of the state that such funds be disbursed to the participating fairs on the basis of grade of quality of the fair, thereby recognizing achievement and providing incentive for improvement in the quality of the fairs; and that this act is designed to accomplish this purpose and should be given effect immediately. Therefore, an emergency is hereby declared to exist and this act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after its passage and approval.”

Acts 1989 (1st Ex. Sess.), No. 192, § 32: July 1, 1989. Emergency clause provided: “It is hereby found and determined by the Seventy-Seventh General Assembly, that the Constitution of the State of Arkansas prohibits the appropriation of funds for more than a two (2) year period; that the effectiveness of this Act on July 1, 1989 is essential to the operation of the agency for which the appropriations in this Act are provided, and that in the event of an extension of the Regular Session, the delay in the effective date of this Act beyond July 1, 1989 could work irreparable harm upon the proper administration and provision of essential governmental programs. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after July 1, 1989.”

Acts 2019, No. 910, § 6346(b): July 1, 2019. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that this act revises the duties of certain state entities; that this act establishes new departments of the state; that these revisions impact the expenses and operations of state government; and that the sections of this act other than the two uncodified sections of this act preceding the emergency clause titled ‘Funding and classification of cabinet-level department secretaries’ and ‘Transformation and Efficiencies Act transition team’ should become effective at the beginning of the fiscal year to allow for implementation of the new provisions at the beginning of the fiscal year. Therefore, an emergency is declared to exist, and Sections 1 through 6343 of this act being necessary for the preservation of the public peace, health, and safety shall become effective on July 1, 2019”.

2-36-101. Grading of fairs.

  1. The Arkansas Livestock and Poultry Commission may formulate necessary and appropriate rules for the grading of fairs on a point system in cooperation with an ad hoc advisory committee formed of representatives of agriculture consisting of representatives from the United States Department of Agriculture, the University of Arkansas Cooperative Extension Service, the Office of Agricultural Science and Technology of the Division of Career and Technical Education, and the Arkansas Fair Managers Association, which shall make recommendations as to criteria for the allotment of grade points to the commission.
  2. The advisory committee shall determine the entry classifications for which grade points would be allowed and delete from approval such classifications as beauty contests, baby shows, antique shows, skills contests, purchased machinery such as cars and farm equipment, or other noncreative categories which in their opinion would be nonproductive and not in accord with the concept of an agricultural and industrial convention.

History. Acts 1973, No. 317, §§ 6, 7; A.S.A. 1947, §§ 78-1615, 78-1616; Acts 1999, No. 1323, § 1; 2011, No. 776, § 2; 2019, No. 910, § 1032.

Amendments. The 2011 amendment substituted “Department of Career Education” for “Department of Workforce Education” in (a).

The 2019 amendment substituted “Division of Career and Technical Education” for “Department of Career Education” in (a).

2-36-102. Exhibitors.

An exhibitor shall be a single person who enters a display in the fair. Each unit shall not be construed as an exhibitor, but a person may be counted as an exhibitor in each classification in which he or she has an entry.

History. Acts 1973, No. 317, § 8; A.S.A. 1947, § 78-1617.

2-36-103. Sale of immoral, lewd, etc., items.

Any facilities which house county, district, or state fairs shall prohibit the sale of literature, pictures, clothing, or other materials which are immoral, lewd, obscene, indecent, or offensive. The prosecuting attorney shall be notified of any proposed sales of such material.

History. Acts 1989 (1st Ex. Sess.), No. 192, § 19.

Subchapter 2 — Funding Generally

Preambles. Acts 1973, No. 317 contained a preamble which read:

“Whereas, the distribution of state funds to county and district fair associations for paying premiums and awards at county fairs has heretofore been made based on that part of the total funds appropriated for the purpose that the population of the county bears to the total population of all counties in which qualifying associations are located irrespective of the size and quality of the fair held in such county and this has resulted in a wide variation in the amounts of state funds received by the various associations and a discrepancy over the state in the amount an award winner receives for an entry; and

“Whereas, the county and district fairs stand as a medium for the exchange of ideas and methods and should develop on the concept of an agricultural and industrial ‘convention’ and should provide encouragement and stimulation to the Arkansas agricultural, industrial, and livestock industries; and the state should recognize achievement and provide incentive for improvement in the quality of county fairs by the disbursement of state funds on a graded basis of fair quality;

“Now therefore … .”

Effective Dates. Acts 1973, No. 317, § 14: Mar. 13, 1973. Emergency clause provided: “It is hereby found and determined by the General Assembly that the present method of disbursing state funds appropriated for the development of agricultural, industrial and livestock industries in the state is based upon the population of the county in which county fairs are held; that it is in the best interests of the state that such funds be disbursed to the participating fairs on the basis of grade of quality of the fair, thereby recognizing achievement and providing incentive for improvement in the quality of the fairs; and that this act is designed to accomplish this purpose and should be given effect immediately. Therefore, an emergency is hereby declared to exist and this act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after its passage and approval.”

2-36-201. Administration.

The Arkansas Livestock and Poultry Commission shall be empowered and authorized to administer the provisions of this subchapter and adopt rules as it may deem necessary.

History. Acts 1973, No. 317, § 1; A.S.A. 1947, § 78-1610.

2-36-202. Premium funds generally.

Premium funds appropriated by the General Assembly for the purpose of assisting in the development of the agricultural, livestock, and related industries of the state shall be disbursed and, thereafter, expended by the county and district livestock show or fair associations in the manner and for the purposes provided in this subchapter.

History. Acts 1973, No. 317, § 1; A.S.A. 1947, § 78-1610.

2-36-203. Premium funds for state fair.

  1. The Arkansas Livestock Show Association shall be entitled to receive the total amount of funds appropriated by the General Assembly for the purpose of paying premiums at the Arkansas State Fair and Livestock Show after qualifying by the filing of an application with the Arkansas Livestock and Poultry Commission and furnishing bond to the State of Arkansas in such form and amount and containing such conditions therein and type of surety thereon as the commission shall by general rules determine.
    1. Premium funds paid over to the association shall be used only for the purpose of paying awards on approved entry classifications, the exhibitors of which are residents of this state.
    2. The association may pay awards on livestock to nonresident owners in an amount not in excess of ten percent (10%) of any premium funds received by it from an appropriation for the purpose of paying awards at the Arkansas State Fair and Livestock Show.

History. Acts 1973, No. 317, § 10; A.S.A. 1947, § 78-1619.

2-36-204. Division of funds among counties and districts.

    1. Each county and district livestock show or fair association qualifying shall be entitled to that part of the total funds appropriated for the purpose that the qualifying grade points earned by that county for the previous year bear to the total grade points of all counties in which all qualifying associations are located.
    2. No county shall receive less than five hundred dollars ($500).
    1. Counties having more than one (1) city or town in which regular sessions of circuit court are authorized by law and in which livestock shows have been held, if otherwise qualified, may participate in the county premium funds on the same basis as other county shows.
    2. Associations located in two (2) or more adjoining counties may hold a joint show upon approval of their respective associations, in which event, the funds due each association shall be paid to the executive officer of the joint show.

History. Acts 1973, No. 317, § 5; A.S.A. 1947, § 78-1614.

2-36-205. Use of premium funds.

    1. Premium funds paid over by the Arkansas Livestock and Poultry Commission to the respective associations shall be used only for the purpose of paying awards on approved entry classifications, the exhibitors of which are residents of this state.
    2. Exhibitors are ineligible to receive such funds from more than one (1) county association during any fiscal year.
  1. Not less than twenty-five percent (25%) of premium funds paid over by the state to the respective associations shall be used for paying premiums to winners of awards in the junior division of 4-H and FFA shows.

History. Acts 1973, No. 317, § 9; A.S.A. 1947, § 78-1618.

2-36-206. Appropriations for construction and operation.

      1. Funds appropriated by the General Assembly to be used for construction of a district livestock show shall be paid over to the executive officers of the respective district livestock show or fair associations.
      2. None of the funds may be used for paying premiums at or for acquiring sites for the district shows.
    1. No state funds may be paid over to any district association unless and until the executive officer shall have furnished bond to the State of Arkansas in such form and amount and containing such conditions and type of surety as the Arkansas Livestock and Poultry Commission shall by general rule determine.
    1. Funds appropriated by the General Assembly to be used for construction and operation of the Arkansas State Fair and Livestock Show shall be disbursed upon orders of the commission.
    2. The operating revolving fund set aside in a special account to be used for operating expenses in conducting the livestock show shall continue to be set aside for that purpose. All profits from the operation of the show shall be deposited into this account to the extent necessary to maintain the balance at the full amount of the initial deposit.
    3. If in any year the show is operated at a loss, then funds appropriated for this purpose by the General Assembly shall be used to the extent necessary to maintain the balance in the fund account at the full amount of the initial deposit.
  1. The commission shall designate the disbursing officers of all livestock show funds appropriated by the General Assembly.

History. Acts 1949, No. 20, §§ 2, 3; A.S.A. 1947, §§ 78-1605, 78-1606; Acts 2019, No. 315, § 21.

Amendments. The 2019 amendment substituted “rule” for “regulation” in (a)(2).

2-36-207. Applications for funds.

  1. Each county and district livestock show or fair association desiring to participate in funds appropriated for a given fiscal year for the purpose of paying premiums on qualified entries as defined in this subchapter shall file an application during the month of June next preceding the fiscal year with the Arkansas Livestock and Poultry Commission.
    1. The application shall include a complete report on the prior year's fair activities with regard to fair dates, exhibitors, classifications, amount of association funds paid as premiums over and above state funds, and any and all other information requested by the commission which it may deem necessary in order to classify and grade the fair.
    2. The president, secretary, treasurer, or other executive officer of the association shall make application on forms to be prescribed and furnished by the commission.
  2. Only those applications received before the close of business on June 30 shall be considered by the commission in making allocation of funds appropriated for that purpose for the following fiscal year.

History. Acts 1973, No. 317, § 3; A.S.A. 1947, § 78-1612.

2-36-208. Bonding of executive officers.

No state funds may be paid over to any county and district livestock show or fair association unless and until the executive officer shall have furnished bond to the State of Arkansas in such form and amount and containing such conditions and type of surety as the Arkansas Livestock and Poultry Commission shall by general rule determine.

History. Acts 1973, No. 317, § 2; A.S.A. 1947, § 78-1611; Acts 2019, No. 315, § 22.

Amendments. The 2019 amendment substituted “rule” for “regulation”.

2-36-209. Determination of bond and fund amounts.

  1. Within sixty (60) days after the closing date for the receipt of applications for funds, the Arkansas Livestock and Poultry Commission shall determine the amount of bond which the executive officer shall furnish and the amount of premium funds to which each county and district livestock show or fair association is entitled in accordance with the provisions of this subchapter.
  2. The state warrant issued in favor of each association for the amount found to be due shall be transmitted to the executive officer thereof upon receipt by the commission of a bond executed in conformity with its requirements.

History. Acts 1973, No. 317, § 4; A.S.A. 1947, § 78-1613.

2-36-210. Audits of expenditures.

    1. The executive officer of each county, district, and state livestock show or fair association shall file an itemized listing of all expenditures of state funds with the Arkansas Livestock and Poultry Commission in a format developed by the commission.
    2. Upon request by the commission, the executive officer of each county, district, and state livestock show or fair association shall present to the commission adequate documentation supporting listed expenditures.
  1. Arkansas Legislative Audit may audit all expenditures of state funds paid over to the executive officers of the respective county, district, and state livestock show or fair association and file a copy of the report of each audit with the commission.

History. Acts 1973, No. 317, § 11; A.S.A. 1947, § 78-1620; Acts 2001, No. 619, § 1.

2-36-211. Accounting reports by recipients.

    1. Each county and district livestock show or fair association participating in funds appropriated for paying premiums or appropriated for construction purposes at the various county, district, and fair associations shall annually submit to the Arkansas Livestock and Poultry Commission an itemized listing of all expenditures.
    2. In addition, the association shall file with the commission the original invoices, contracts, and other supporting documents necessary to adequately support the claim for the amount of funds received from the commission for construction programs.
    1. For those expenditures representing premiums and awards payments, the receiving association shall file with the commission a detailed listing of payees, amounts, and classifications of awards and cancelled checks in support thereof.
    2. The documentation of expenditures as set forth in this section shall be maintained by the commission until audited by Arkansas Legislative Audit.
  1. The commission shall require that all documentation for the prior year's expenditures by an association be filed in compliance with subsections (a) and (b) of this section before the making of any further grants for premiums or construction to these associations.

History. Acts 1975, No. 545, §§ 1, 2; A.S.A. 1947, §§ 78-1610.1, 78-1610.2.

Subchapter 3 — County and District Shows or Fairs

Effective Dates. Acts 1981, No. 770, § 27: July 1, 1981. Emergency clause provided: “It is hereby found and determined by the Seventy-Third General Assembly, that the Constitution of the State of Arkansas prohibits the appropriation of funds for more than a two (2) year period; that the effectiveness of this act on July 1, 1981 is essential to the operation of the agency for which the appropriations of this act are provided, and that in the event of an extension of the Regular Session, the delay in the effective date of this act beyond July 1, 1981 could work irreparable harm upon the proper administration and providing of essential governmental programs. Therefore, an emergency is hereby declared to exist and this act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after July 1, 1981.”

Acts 1987, No. 554, § 2: Apr. 2, 1987. Emergency clause provided: “It is hereby found and determined by the General Assembly that the present law relating to the Northeast Arkansas District Fair is unduly burdensome and in need of revision; that the revision should go into effect immediately; that unless this emergency clause is adopted this Act will not go into effect until ninety days after extended recess or adjournment of the General Assembly. Therefore, an emergency is hereby declared to exist and this Act being immediately necessary for the preservation of the public peace, health and safety shall be in full force and effect from and after its passage and approval.”

Acts 1991, No. 1105, § 31: July 1, 1991. Emergency clause provided: “It is hereby found and determined by the Seventy-Eighth General Assembly, that the Constitution of the State of Arkansas prohibits the appropriation of funds for more than a two (2) year period; that the effectiveness of this Act on July 1, 1991 is essential to the operation of the agency for which the appropriations in this Act are provided, and that in the event of an extension of the Regular Session, the delay in the effective date of this Act beyond July 1, 1991 could work irreparable harm upon the proper administration and provision of essential governmental programs. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after July 1, 1991.”

Acts 2003, No. 1288, § 33: July 1, 2003. Emergency clause provided: “It is found and determined by the General Assembly, that the Constitution of the State of Arkansas prohibits the appropriation of funds for more than a two (2) year period; that the effectiveness of this Act on July 1, 2003 is essential to the operation of the agency for which the appropriations in this Act are provided, and that in the event of an extension of the Regular Session, the delay in the effective date of this Act beyond July 1, 2003 could work irreparable harm upon the proper administration and provision of essential governmental programs. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after July 1, 2003.”

Acts 2011, No. 116, § 2: Feb. 23, 2011. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that Independence County has made the decision to move to a different district fair; that the Northeast Arkansas District Fair needs to be able to ensure that its operations continue to run in an efficient manner; and that this act is immediately necessary because the Northeast Arkansas District Fair Board and executive board need to be able to make the necessary preparations and advise the participants, vendors, and community of changes in a timely manner. Therefore, an emergency is declared to exist and this act being immediately necessary for the preservation of the public peace, health, and safety shall become effective on: (1) The date of its approval by the Governor; (2) If the bill is neither approved nor vetoed by the Governor, the expiration of the period of time during which the Governor may veto the bill; or (3) If the bill is vetoed by the Governor and the veto is overridden, the date the last house overrides the veto.”

Acts 2011, No. 131, § 5: Feb. 24, 2011. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that district fairs prepare for activities all year long and require insurance for their activities; that moving Independence County to the North Central Arkansas District Fair and Livestock Show in Izard County will require preparation and insurance, as well as other financial preparations; and that this act is immediately necessary because the North Central Arkansas District Fair and Livestock Show needs the legal authority to act to properly finance the change, procure the necessary insurance, and meet other financial responsibility requirements to incorporate Independence County into its district fair. Therefore, an emergency is declared to exist and this act being immediately necessary for the preservation of the public peace, health, and safety shall become effective on: (1) The date of its approval by the Governor; (2) If the bill is neither approved nor vetoed by the Governor, the expiration of the period of time during which the Governor may veto the bill; or (3) If the bill is vetoed by the Governor and the veto is overridden, the date the last house overrides the veto.”

2-36-301. Northwest Arkansas District Fair and Livestock Show.

  1. There is established a district livestock show to be known as the “Northwest Arkansas District Fair and Livestock Show” to be located in Boone County, and to be managed by the existing livestock show association which manages and conducts the county livestock show in that county.
  2. Counties composing the Northwest Arkansas District Fair and Livestock Show district shall be Boone County, Newton County, Marion County, Baxter County, Searcy County, and Carroll County.
  3. The Northwest Arkansas District Fair and Livestock Show shall enjoy the same privileges and status as the four (4) previously established district livestock shows in the State of Arkansas.

History. Acts 1961, No. 334, §§ 1-3; 1963, No. 243, § 1; A.S.A. 1947, §§ 78-1607 — 78-1609.

2-36-302. Northeast Arkansas District Fair Advisory Board.

    1. There is created the Northeast Arkansas District Fair Advisory Board, to be composed of the following members:
      1. One (1) member from Mississippi County;
      2. One (1) member from Craighead County;
      3. One (1) member from Greene County;
      4. One (1) member from Clay County;
      5. One (1) member from Crittenden County;
      6. One (1) member from St. Francis County;
      7. One (1) member from Cross County;
      8. One (1) member from Poinsett County;
      9. One (1) member from Jackson County;
      10. One (1) member from Lawrence County;
      11. One (1) member from Randolph County;
      12. One (1) member from Lee County;
      13. One (1) member from Woodruff County; and
      14. One (1) member from White County.
      1. The county fair board of each county shall select the person from that county to be a member of the board.
      2. If any county does not have a county fair board, the county judge of that county shall appoint that county's representative to the board.
        1. There is created an executive board that shall be composed of the members of the county fair board of the county in which the Northeast Arkansas District Fair is located.
        2. The executive board shall be responsible for the day-to-day operations and maintenance of the Northeast Arkansas District Fair fairgrounds.
    2. Members of the board shall serve four-year terms, and any vacancies arising in the board membership shall be filled in the same manner as were the original appointments.
    1. In all matters, the fair shall be subject to the rules of the Arkansas Livestock and Poultry Commission and otherwise conducted in the same manner as other district fairs.
    2. The location of the Northeast Arkansas District Fair shall be in Craighead County.
  1. The board shall annually select a chair from among its membership.
  2. After each federal decennial census, the membership on the board shall be reapportioned among the counties listed in subsection (a) of this section in such manner as to reflect the proportionate population of each county relating to the district as a whole.

History. Acts 1983, No. 746, §§ 1, 2; A.S.A. 1947, §§ 78-1625, 78-1626; Acts 1987, No. 554, § 1; 1999, No. 99, § 1; 2011, No. 116, § 1; 2011, No. 131, § 1.

A.C.R.C. Notes. Subdivision (b)(1) originally began “The Northeast Arkansas District Fair shall be held in Jonesboro, Arkansas, through calendar year 1992.”

Subdivision (b)(2) originally began “For calendar year 1993 and thereafter.”

Subdivision (a)(1) was amended by both Acts 2011, No. 116, § 1, and No. 131, § 1. While the amendment by Acts 2011, No. 131, § 1, only concerned the removal of Independence County from the Northeast Arkansas District Fair Advisory Board, the amendment by Acts 2011, No. 116, § 1, made the same removal of Independence County from the Northeast Arkansas District Fair Advisory Board but also made other substantive changes to (a)(1). Given that the only substantive change made to subdivision (a)(1) by Acts 2011, No. 131, § 1, was also made by Acts 2011, No. 116, § 1, but Acts 2011, No. 116, § 1, made additional substantive changes, subdivision (a)(1) is set out above as amended by Acts 2011, No. 116, § 1, effective July 27, 2011. The amendment made to subdivision (a)(1) by Acts 2011, No. 131, § 1, read as follows:

“(a)(1) There is created the Northeast Arkansas District Fair Advisory Board, to be composed of twenty-nine (29) members:

“(A) Five (5) members from Mississippi County;

“(B) Four (4) members from Craighead County;

“(C) Two (2) members from Greene County;

“(D) One (1) member from Clay County;

“(E) Three (3) members from Crittenden County;

“(F) Two (2) members from St. Francis County;

“(G) One (1) member from Cross County;

“(H) Two (2) members from Poinsett County;

“(I) Two (2) members from Jackson County;

“(J) One (1) member from Lawrence County;

“(K) One (1) member from Randolph County;

“(L) One (1) member from Lee County;

“(M) One (1) member from Woodruff County; and

“(N) Three (3) members from White County.”

Amendments. The 2011 amendment by No. 116 rewrote (a)(1); substituted “Northeast Arkansas District Fair Advisory Board” for “board” at the end of (a)(2)(B) and twice in (a)(3); added (a)(2)(C); deleted “and regulations” following “rules” in (b)(1); and rewrote (b)(2).

The 2011 amendment by No. 131 substituted “twenty-nine (29)” for “thirty-one (31)” in the introductory language of (a)(1); deleted (a)(1)(J) and redesignated the remaining subdivisions accordingly.

2-36-303. Annual joint fair and livestock shows by adjoining counties.

    1. Any two (2) or more adjoining counties in the state are authorized to enter into an agreement for and to conduct an annual joint fair and livestock show.
      1. The agreement for a joint fair and livestock show shall be executed in writing by the county fair and livestock show association board of each of the participating counties.
      2. The agreement shall designate the location at which the annual joint fair and livestock show is to be conducted and shall contain such other provisions regarding the joint fair and livestock show as the boards of the respective participating county fair and livestock show associations shall deem necessary or appropriate to assure the proper and efficient conduct of the joint fair and livestock show.
    1. When any two (2) or more adjoining county fair or livestock show associations conduct a joint fair and livestock show as authorized in this section, funds appropriated by the state for county livestock show construction shall be allocated and paid by the disbursing officer of the Arkansas Livestock and Poultry Commission to the executive officer of each participating county association the same as if each county were conducting a separate fair and livestock show.
    2. Construction funds received by each executive officer shall be transmitted to the appropriate official of the joint fair and livestock show to be used exclusively for construction of facilities for conducting the joint fair and livestock show.
      1. Each joint fair and livestock show conducted under the provisions of this section shall be graded and awarded qualifying grade points the same as if it were a single county show for the purposes of the allocation of state funds appropriated for premiums for county livestock shows.
      2. The amount of such funds allocated and distributed to any such joint fair and livestock show by the disbursing officer of the commission shall be based upon the qualifying grade points earned by the joint show.
      1. In addition to the premium funds so allocated to the joint show on the basis of qualifying grade points, each participating county other than the county in which the joint show is located shall be eligible to receive from state funds appropriated for county livestock show premiums the amount of five hundred dollars ($500), which shall be paid annually by the disbursing officer of the commission to the executive officer of each participating county fair association the same as if each county were conducting a separate fair and livestock show.
      2. Premium funds received by each executive officer shall be transmitted to the appropriate official of the joint fair and livestock show to be used exclusively for premiums at the joint fair and livestock show.

History. Acts 1983, No. 172, §§ 1-3; A.S.A. 1947, §§ 78-1622 — 78-1624.

2-36-304. Participation by nonresident landowner.

In the event any individual owns land in two (2) adjacent counties and the county in which he or she resides does not conduct a county livestock show, the individual shall be deemed to be eligible to participate in the county livestock show conducted in the county in which he or she owns land but does not reside.

History. Acts 1981, No. 770, § 19; A.S.A. 1947, § 78-1621.

Cross References. Bond required for nonresident livestock auctioneer, § 17-17-304.

2-36-305. District junior livestock shows.

  1. A junior livestock show is authorized for each of the six (6) livestock show districts of the state.
  2. Any organization desiring to establish a district junior livestock show shall make application and submit proposed organizational and operational plans for the district junior livestock show to the Arkansas Livestock and Poultry Commission.
  3. The commission may approve only one (1) district junior livestock show in each of the six (6) livestock show districts.
  4. Funds appropriated to the commission for district junior livestock shows shall be distributed equally to all district junior livestock shows.

History. Acts 1991, No. 1105, § 18; 2003, No. 1288, § 28.

A.C.R.C. Notes. Former § 2-36-305, concerning district junior livestock shows, is deemed to be superseded by this section. The former section was derived from Acts 1989 (1st Ex. Sess.), No. 192, § 20. A similar provision which was also codified as § 2-36-305, and was previously superseded, was derived from Acts 1987, No. 1055, § 4.

2-36-306. North Central Arkansas District Fair and Livestock Show.

  1. There is established a district livestock show to be known as the “North Central Arkansas District Fair and Livestock Show” and to be located in Izard County.
  2. Counties composing the North Central Arkansas District Fair and Livestock Show district shall be Cleburne County, Fulton County, Independence County, Izard County, Sharp County, Stone County, and Van Buren County.
  3. The North Central Arkansas District Fair and Livestock Show shall enjoy the same privileges and status as previously established district livestock shows in the State of Arkansas.
    1. There is created the North Central Arkansas District Fair Board, to be composed of fourteen (14) members. Two (2) members shall be selected from each county. One (1) member in each county shall be selected by the livestock show association in the county, and one (1) shall be selected by the Arkansas Farm Bureau Federation.
    2. The members of the board shall serve four-year terms. Any vacancies arising in the board membership shall be filled in the same manner as were the original appointments.

History. Acts 1997, No. 881, § 1; 1999, No. 99, § 2; 2001, No. 358, § 1; 2011, No. 131, §§ 2, 3.

A.C.R.C. Notes. Acts 2007, No. 272, § 1, provided: “Act 57 Compliance. The General Assembly declares this act to be in concordance with the study of the state's system of public education conducted in 2006 by the Adequacy Study Oversight Subcommittee, the House Interim Committee on Education, and the Senate Interim Committee on Education in compliance with Act 57 of the Second Extraordinary Session of 2003.”

Acts 2007, No. 272, § 9, provided: “The document attached hereto titled ‘Education Funding Recommendations for the 2007-2009 Biennium’, contains the Education Funding Recommendations of the Adequacy Study Oversight Subcommittee, the House Interim Committee on Education, and the Senate Interim Committee on Education. Since January 22, 2007, when those recommendations were adopted by the House Education Committee and the Senate Education Committee, some calculation errors were identified and recalculations were made. The recalculations are also contained in this document in narrative form. This document and its final recommendations are specifically adopted by the House Education Committee and the Senate Education Committee and recommended to the General Assembly. The document, ‘Education Funding Recommendations for the 2007-2009 Biennium’, shall be filed in the journals of the House and Senate.”

Acts 2011, No. 131, § 4, provided:

“(a) Within thirty (30) days after the effective date of this act, the two (2) new members of the North Central Arkansas District Fair Board from Independence County shall be selected as provided under Arkansas Code § 2-36-306(d)(1).

“(b) The terms of the two (2) new members of the board from Independence County shall be:

“(1) Staggered in sequence with the expiration dates of the board members that held the position on the effective date of this act to avoid the terms of the two (2) new members expiring in the same year; and

“(2) Determined by lot.

“(c)(1) If necessary to avoid the terms of the two (2) new members of the board from Independence County expiring in the same year, the terms of the initial two (2) new members may be for a period of less than four (4) years.

“(2) Subsequent appointments to the board from Independence County shall be for a period of four (4) years.”

The effective date of Acts 2011, No. 131, is February 24, 2011.

Amendments. The 2011 amendment inserted “Independence County” in (b); substituted “fourteen (14)” for “twelve (12)” in (d)(1); and deleted the last sentence in (d)(2).

2-36-307. Arkansas-Oklahoma District Fair.

  1. There is established a district livestock show to be known as the “Arkansas-Oklahoma District Fair” and to be located in Fort Smith, Sebastian County, Arkansas at Kay Rodgers Park.
  2. The Arkansas-Oklahoma District Fair district shall be composed of:
    1. The Arkansas counties of Benton, Conway, Crawford, Franklin, Johnson, Logan, Perry, Polk, Pope, Scott, Sebastian, Washington, and Yell; and
    2. In Oklahoma:
      1. The counties of Adair, Cherokee, Haskell, Latimer, LeFlore, and Sequoyah that shall have exhibits counted for premium points but shall not receive Arkansas state funds; and
      2. The counties of Delaware, McCurtain, McIntosh, Muskogee, Pittsburg, and Wagoner that shall not be counted for premium points or receive Arkansas state funds.
    1. The fair shall commence each year no later than the third Friday following Labor Day.
    2. However, the fair may not commence earlier than the third Friday following Labor Day unless all Arkansas county fairs in the district have been completed before the proposed earlier date.
  3. The fair shall enjoy the same privileges as previously established district fairs and livestock shows in the State of Arkansas.
    1. There is created the Arkansas-Oklahoma District Fair Board to produce and administer the fair.
    2. The board shall be composed of:
      1. The District Fair Committee appointed by the Arkansas-Oklahoma Regional Education and Promotion Association, Inc.; and
      2. At the option of each county fair among the Arkansas fairs in the district, one (1) member from each fair appointed by the respective fairs.
    3. The board shall operate at the discretion of the members.

History. Acts 2003, No. 685, § 1.

Chapter 37 Arkansas Feed Law of 1997

A.C.R.C. Notes. As enacted by Acts 1997, No. 726, this chapter principally follows the Uniform Feed Act.

Publisher's Notes. Former Chapter 37, concerning commercial feedstuffs, was repealed by Acts 1997, No. 726, § 18. The chapter was derived from the following sources:

2-37-101. Acts 1951, No. 108, § 2; A.S.A. 1947, § 78-702.

2-37-102. Acts 1969, No. 49, §§ 1, 2; A.S.A. 1947, §§ 78-719, 78-720.

2-37-103. Acts 1951, No. 108, §§ 12, 13; A.S.A. 1947, §§ 78-714, 78-715.

2-37-104. Acts 1951, No. 108, § 14; A.S.A. 1947, § 78-716.

2-37-105. Acts 1951, No. 108, §§ 10, 11; A.S.A. 1947, §§ 78-711, 78-712.

2-37-106. Acts 1951, No. 108, § 1; 1953, No. 66, § 1; A.S.A. 1947, § 78-701.

2-37-107. Acts 1967, No. 439, § 1; A.S.A. 1947, § 78-718.

2-37-108. Acts 1951, No. 108, §§ 3, 4; A.S.A. 1947, §§ 78-703, 78-704.

2-37-109. Acts 1951, No. 108, § 9; A.S.A. 1947, § 78-710.

2-37-110. Acts 1951, No. 108, § 15; A.S.A. 1947, § 78-717.

2-37-111. Acts 1951, No. 108, § 5; A.S.A. 1947, § 78-705.

2-37-112. Acts 1951, No. 108, § 7; A.S.A. 1947, § 78-707.

2-37-113. Acts 1951, No. 108, § 8; A.S.A. 1947, § 78-709.

2-37-114. Acts 1951, No. 108, § 6; 1979, No. 120, § 1; 1983, No. 238, § 1; A.S.A. 1947, § 78-706; Acts 1993, No. 783, §§ 5, 6.

Research References

ALR.

Products liability for animal feed or medicines. 29 A.L.R.4th 1045.

2-37-101. Title.

This chapter shall be known as the “Arkansas Feed Law of 1997”.

History. Acts 1997, No. 726, § 1.

2-37-102. Enforcing agency.

This chapter shall be administered by the State Plant Board.

History. Acts 1997, No. 726, § 2.

2-37-103. Definitions.

As used in this chapter:

  1. “Board” means the State Plant Board.
  2. “Brand name” means any word, name, symbol, device, or any combination thereof, identifying the commercial feed of a distributor or registrant and distinguishing it from that of others.
  3. “Commercial feed” means all materials or combination of materials which are distributed for use as feed or for mixing in feed, unless such materials are specifically exempted. Unmixed whole seeds, when such whole seeds are not adulterated, are exempt. The board by rule may exempt from this definition, or from specific provisions of this chapter, commodities such as hay, straw, stover, silage, cobs, husks, hulls, and individual chemical compounds or substances when such commodities, compounds or substances are not intermixed with other materials, and are not adulterated. Feed supplied to contract feeders and feed ingredients supplied to integrated operators are not commercial feed and are therefore exempt if granted an exemption license in accordance with § 2-37-104. Furthermore, exchanges of feed or feed ingredients between or among integrated operators, who have been granted an exemption license as provided in § 2-37-104, are not commercial feed and are therefore not subject to the provisions of this chapter. The board by rule may exempt from this definition, or from certain provisions of this chapter certain pet food or specialty pet food.
  4. “Contract feeder” means a person, who as an independent contractor, feeds animals under a contract whereby such feed is supplied, furnished, or otherwise provided such person and whereby such person's remuneration is determined all or in part by feed consumption, mortality, profits, or amount or quality of product.
  5. “Customer-formula feed” means commercial feed which consists of a mixture of commercial feeds and/or feed ingredients each batch of which is manufactured according to the specific instructions of the final purchaser.
  6. “Distribute” means to offer for sale, sell, exchange, or barter, commercial feed.
  7. “Distributor” means any person who distributes.
  8. “Drug” means any article intended for use in the diagnosis, cure, mitigation, treatment, or prevention of disease in animals other than man and articles other than feed intended to affect the structure of any function of the animal body.
  9. “Feed ingredient” means each of the constituent materials making up a commercial feed.
  10. “Integrated operator” means a person who contracts with a contract feeder to supply feed and pays that person based on all or in part by feed consumption, mortality, profits, or amount or quality of product produced.
  11. “Label” means a display of written, printed, or graphic matter upon or affixed to the container in which a commercial feed is distributed, or on the invoice or delivery slip with which a commercial feed is distributed.
  12. “Labeling” means all labels and other written, printed, or graphic matter (1) upon a commercial feed or any of its containers or wrapper or (2) accompanying such commercial feed.
  13. “Manufacture” means to grind, mix or blend, or further process a commercial feed for distribution.
  14. “Mineral feed” means a commercial feed intended to supply primarily mineral elements or inorganic nutrients.
  15. “Official sample” means a sample of feed taken by the board or its agent in accordance with the provisions of § 2-37-111(c), (e), or (f).
  16. “Percent” or “percentages” means percentages by weights.
  17. “Person” includes individual, partnership, corporation, and association.
  18. “Pet” means any domesticated animal normally maintained in or near the households of the owners thereof.
  19. “Pet food” means any commercial feed prepared and distributed for consumption by pets.
  20. “Product name” means the name of the commercial feed which identifies it as to kind, class, or specific use.
  21. “Quantity statement” means the net weight (mass), net volume (liquid or dry) or count.
  22. “Specialty pet” means any domesticated animal pet normally maintained in a cage or tank, such as, but not limited to, gerbils, hamsters, canaries, psittacines, birds, mynahs, finches, tropical fish, goldfish, snakes and turtles.
  23. “Specialty pet food” means any commercial feed prepared and distributed for consumption by specialty pets.
  24. “Ton” means a net weight of two thousand pounds (2,000 lbs.) avoirdupois.

History. Acts 1997, No. 726, § 3.

2-37-104. Registration and licensing.

    1. Any person:
      1. Who manufactures a commercial feed within this state;
      2. Who distributes a commercial feed in or into the state; or
      3. Whose name appears on the label of a commercial feed as guarantor,
    2. Any person who makes only retail sales of commercial feed which bears labeling or other approved indication that the commercial feed is from a licensed manufacturer, guarantor, or distributor who has assumed full responsibility for the tonnage inspection fee due under this chapter is not required to obtain a license.
    1. A person who is required to obtain a license shall submit an application on a form provided or approved by the State Plant Board accompanied by a license fee of ten dollars ($10.00) paid to the board for each facility. The board shall remit such license fees to the Treasurer of State for deposit into the State Treasury to the credit of the Plant Board Fund for the sole use of the board.
    2. A license shall expire on the last day of December of the year for which it is issued; provided that any license shall be valid through ninety (90) days of the next ensuing year or until the issuance of the renewal license, whichever event first occurs, if the holder thereof has filed a renewal application with the board on or before December 31st of the year for which the current license was issued.
    3. A new applicant who fails to obtain a license within fifteen (15) working days after notification of the requirement to obtain a license, or any licensee who fails to comply with license renewal requirements, shall pay a thirty-dollars late fee in addition to the license fee.
  1. The form and content of the commercial feed license application shall be established by rules adopted by the board.
  2. The board may, at any time, request from a license applicant or licensee copies of labels and labeling in order to determine compliance with the provisions of this chapter.
    1. The board is empowered to refuse to issue a license to any person not in compliance with the provisions of this chapter.
    2. The board may suspend or revoke any license issued to any person found not in compliance with any provision of this chapter.
    3. The board may place conditions that limit production or distribution of a particular commercial feed on the license of any person found not to be in compliance with this chapter.
    4. No license shall be conditioned, suspended, refused or revoked unless the applicant or licensee shall first be given an opportunity to be heard before the board in order to comply with the requirements of this chapter.
  3. In order to be exempt from the provisions of this chapter, integrated operators, as defined in § 2-37-103, shall submit an application for exemption on a form provided or approved by the board accompanied by an application fee of ten dollars ($10.00) for each facility. The board shall remit such application fees to the Treasurer of State for deposit into the State Treasury to the credit of the Plant Board Fund to be used solely by the board.
  4. A grower's production of unmanipulated poultry litter is exempt from the provisions of this chapter.

shall obtain a license for each facility which distributes in or into the state authorizing him or her to manufacture or distribute commercial feed before he or she engages in such activity.

History. Acts 1997, No. 726, § 4.

2-37-105. Labeling.

A commercial feed shall be labeled as follows:

  1. In the case of a commercial feed, except a customer-formula feed, it shall be accompanied by a label bearing the following information:
    1. The quantity statement (may be stated in metric units in addition to the required avoirdupois).
    2. The product name and brand name, if any, under which the commercial feed is distributed.
    3. The guaranteed analysis stated in such terms as the State Plant Board by rule determines is required to advise the user of the composition of the feed or to support claims made in the labeling. In all cases the substances or elements must be determinable by laboratory methods such as the methods published by the AOAC International.
    4. The common or usual name of each ingredient used in the manufacture of the commercial feed, provided that the board by rule may permit the use of a collective term for a group of ingredients which perform a similar function, or the board may exempt such commercial feeds, or any group thereof, from this requirement of an ingredient statement if the board finds that such statement is not required in the interest of consumers.
    5. The name and principal mailing address of the manufacturer or the person responsible for distributing the commercial feed.
    6. Adequate directions for use for all commercial feeds containing drugs and for such other feeds as the board may require by rule as necessary for their safe and effective use.
    7. Such precautionary statements as the board by rule determines are necessary for the safe and effective use of the commercial feed.
    8. If a drug containing product is used:
      1. The purpose of the medication (claim statement), and
      2. The established name of each active drug ingredient and the level of each drug used in the final mixture expressed as defined by rule.
  2. In the case of a customer-formula feed, it shall be accompanied by a label, invoice, delivery slip or other shipping document, bearing the following information:
    1. Name and address of the manufacturer;
    2. Name and address of the purchaser;
    3. Date of delivery;
    4. The product name and net weight (may be stated in metric units in addition to the required avoirdupois) of each commercial feed and each other ingredient used in the mixture;
    5. Adequate directions for use and precautionary statements for all customer-formula feeds containing drugs and for such other feeds as the board may require by rule as necessary for their safe and effective use.
    6. If a drug containing product is used:
      1. The purpose of the medication (claim statement); and
      2. The established name of each active drug ingredient and the level of each drug used in the final mixture expressed as defined by rule.

History. Acts 1997, No. 726, § 5; 2019, No. 315, §§ 23-25.

Amendments. The 2019 amendment substituted “rule” for “regulation” throughout the section.

2-37-106. Misbranding.

A commercial feed shall be deemed to be misbranded if:

  1. Its labeling is false or misleading in any particular;
  2. It is distributed under the name of another commercial feed;
  3. It is not labeled as required in § 2-37-105;
  4. It purports to be or is represented as a commercial feed, or if it purports to contain or is represented as containing a commercial feed ingredient, unless such commercial feed or feed ingredient conforms to the definition, if any, prescribed by rule by the State Plant Board;
  5. Any word, statement, or other information required by or under authority of this chapter to appear on the label or labeling is not prominently placed thereon with such conspicuousness (as compared with other words, statements, designs, or devices in the labeling) and in such terms as to render it likely to be read and understood by the ordinary individual under customary conditions of purchase and use.

History. Acts 1997, No. 726, § 6.

2-37-107. Adulteration.

A commercial feed shall be deemed to be adulterated:

  1. If it bears or contains any poisonous or deleterious substance which may render it injurious to health; but in case the substance is not an added substance, such commercial feed shall not be considered adulterated under this section if the quantity of such substance in such commercial feed does not ordinarily render it injurious to health; or
  2. If it bears or contains any added poisonous, added deleterious, or added non-nutritive substance which is unsafe within the meaning of Section 406 of the Federal Food, Drug, and Cosmetic Act (other than one which is (i) a pesticide chemical in or on a raw agricultural commodity: or (ii) a food additive); or
  3. If it is, or it bears or contains any food additive which is unsafe within the meaning of Section 409 of the Federal Food, Drug, and Cosmetic Act; or additive which is unsafe within the meaning of Section 409 of the Federal Food, Drug, and Cosmetic Act; or
  4. If it is a raw agricultural commodity and it bears or contains a pesticide chemical which is unsafe within the meaning of Section 408(a) of the Federal Food, Drug, and Cosmetic Act; provided, that where a pesticide chemical has been used in or on a raw agricultural commodity in conformity with an exemption granted or a tolerance prescribed under Section 408 of the Federal Food, Drug, and Cosmetic Act and such raw agricultural commodity has been subjected to processing such as canning, cooking, freezing, dehydrating, or milling, the residue of such pesticide chemical remaining in or on such processed feed shall not be deemed unsafe if such residue in or on the raw agricultural commodity has been removed to the extent possible in good manufacturing practice and the concentration of such residue in the processed feed is not greater than the tolerance prescribed for the raw agricultural commodity unless the feeding of such processed feed will result or is likely to result in a pesticide residue in the edible product of the animal, which is unsafe within the meaning of Section 408(a) of the Federal Food, Drug, and Cosmetic Act; or
  5. If it is, or it bears or contains any color additive which is unsafe within the meaning of Section 706 of the Federal Food, Drug and Cosmetic Act; or
  6. If it is, or it bears or contains any new animal drug which is unsafe within the meaning of Section 512 of the Federal Food, Drug, and Cosmetic Act; or
  7. If it consists in whole or in part of any filthy, putrid, or decomposed substance, or if it is otherwise unfit for feed; or
  8. If it has been prepared, packed, or held under unsanitary conditions whereby it may have become contaminated with filth, or whereby it may have been rendered injurious to health; or
  9. It is, in whole or in part, the product of a diseased animal or of an animal which has died otherwise than by slaughter which is unsafe within the meaning of Section 402(a)(1) or (2) of the Federal Food, Drug, and Cosmetic Act; or
  10. If its container is composed, in whole or in part, of any poisonous or deleterious substance which may render the contents injurious to health; or
  11. If it has been intentionally subjected to radiation, unless the use of the radiation was in conformity with the regulation or exemption in effect under Section 409 of the Federal Food, Drug, and Cosmetic Act; or
  12. If any valuable constituent has been in whole or in part omitted or abstracted therefrom or any less valuable substance substituted therefor; or
  13. If its composition or quality falls below or differs from that which it is purported or is represented to possess by its labeling; or
  14. If it contains viable weed seeds in amounts exceeding the limits which the State Plant Board shall establish by rule; or
  15. If it contains a drug and the methods used in or the facilities or controls used for its manufacture, processing, or packaging do not conform to current good manufacturing practice regulations promulgated by the board to assure that the drug meets the requirement of this chapter as to safety and has the identity and strength and meets the quality and purity characteristics which it purports or is represented to possess. In promulgating such regulations, the board shall adopt the current good manufacturing practice (CGMP) regulations for Type A medicated articles and Type B and Type C medicated feeds established under authority of the Federal Food, Drug, and Cosmetic Act, unless the board determines the current good manufacturing regulations are not appropriate to the conditions which exist in this state.

History. Acts 1997, No. 726, § 7.

A.C.R.C. Notes. Acts 2013, No. 1511, § 1, provided:

“(a)(1) The Arkansas Department of Environmental Quality shall not grant or deny coverage under a general permit for a discharge from a Concentrated Animal Feeding Operations until the applicant publishes a notice of the Notice of Intent application under a general permit for Concentrated Animal Feeding Operations twice a week for six (6) consecutive weeks in a newspaper:

“(A) Of general statewide daily publication; and

“(B) Published in the county where the land described in the application is located.

“(2) The contents and form of the notice shall be prescribed by the Arkansas Department of Environmental Quality.

“(b)(1) A committee shall develop a policy concerning the procedure for an applicant to give sufficient notice of a Notice of Intent of application under a general permit for Concentrated Animal Feeding Operations.

“(2)(A) The committee shall consist of five (5) members.

“(B) Each of the following shall select one member:

“(i) The Arkansas Department of Environmental Quality;

“(ii) The Arkansas Agricultural Department; and

“(iii) The Arkansas Farm Bureau.

“(C) Two (2) members shall be appointed by the Governor.

“(3) The committee shall make its recommendation to Legislative Council on or before December 31, 2013.

“(c) This section shall be effective for one (1) year from the effective date of this act.”

U.S. Code. The Federal Food, Drug, and Cosmetic Act, referred to in this section, is codified as 21 U.S.C. § 301 et seq. Sections 402, 406, 408, 409, 512, and 706 of the act are codified as 21 U.S.C. §§ 342, 346, 346a, 348, 360b, and 379e, respectively.

2-37-108. Prohibited acts.

The following acts and the causing thereof within the state are hereby prohibited:

  1. The manufacture or distribution of any commercial feed that is adulterated or misbranded.
  2. The adulteration or misbranding of any commercial feed.
  3. The distribution of agricultural commodities such as whole seed, hay, straw, stover, silage, cobs, husks, and hulls, which are adulterated within the meaning of § 2-37-107.
  4. The removal or disposal of a commercial feed in violation of any order under § 2-37-112.
  5. The failure or refusal to register in accordance with § 2-37-104.
  6. The violation of § 2-37-113(f).
  7. Failure to pay inspection fees and file reports as required by § 2-37-109.

History. Acts 1997, No. 726, § 8.

2-37-109. Inspection fees and reports.

  1. An inspection fee at the rate of thirty cents ($.30) per ton shall be paid on commercial feeds distributed in this state by the person whose name appears on the label as the manufacturer, guarantor or distributor, except that a person other than the manufacturer, guarantor or distributor may assume liability for the inspection fee, subject to the following:
    1. No fee shall be paid on a commercial feed if the payment has been made by a previous distributor.
    2. No fee shall be paid on customer-formula feeds if the inspection fee is paid on the commercial feeds which are used as ingredients therein.
    3. No fee shall be paid on commercial feeds which are used as ingredients for the manufacture of commercial feeds. If the fee has already been paid, credit shall be given for such payment.
    4. On commercial feed distributed in quantities of twenty-five (25) tons or less, a minimum fee of ten dollars ($10.00) per quarterly report shall be paid. A tonnage report and minimum fee is due for each reporting period, even though no distribution of commercial feeds occurred in the state during that period.
  2. Each person who is liable for the payment of such fee shall:
    1. File, not later than the last day in January, April, July, and October of each year, quarterly statement, setting forth the number of net tons of commercial feeds distributed in this state during the preceding three (3) months; and upon filing such statement shall pay the inspection fee at the rate stated in subsection (a) of this section. Inspection fees which are due and owing and have not been remitted to the State Plant Board within fifteen (15) days following the date due shall have a penalty fee of fifteen percent (15%) or twenty-five dollars ($25.00), whichever is the higher, added to the amount due when payment is finally made. The assessment of this penalty fee shall not prevent the board from taking other actions as provided in this chapter.
    2. Keep such records as may be necessary or required by the board to indicate accurately the tonnage of commercial feed distributed in this state, and the board shall have the right to examine such records to verify statements of tonnage. Failure to make an accurate statement of tonnage or to pay the inspection fee or comply as provided herein shall constitute sufficient cause for the cancellation of the license of a distributor. However, no license shall be canceled or revoked before the distributor has been given an opportunity to be heard before the board and to pay the fees owed under this section.
  3. Fees collected shall constitute a fund for the payment of the costs of inspection, sampling, and analysis, and other expenses necessary for administration of this chapter and shall be deposited into the State Treasury to the credit of the State Plant Board Fund.

History. Acts 1997, No. 726, § 9.

2-37-110. Rules.

  1. The State Plant Board is authorized to promulgate such reasonable rules as may be necessary for the efficient enforcement of this chapter. In the interest of uniformity the board shall by rule adopt, unless the board determines that they are inconsistent with the provisions of this chapter or are not appropriate to conditions which exist in this state, the following:
    1. The Official Definitions of Feed Ingredients and Official Feed Terms adopted by the Association of American Feed Control Officials and published in the Association of American Feed Control Officials Official Publication; and
    2. Any rule promulgated under the authority of the Federal Food, Drug, and Cosmetic Act, provided, that the board would have the authority under this chapter to promulgate such rule.
      1. Before the issuance, amendment, or repeal of any rule authorized by this chapter, the board shall publish the proposed rule, amendment, or notice to repeal an existing rule in a manner reasonably calculated to give interested parties, including all current registrants, adequate notice and shall afford all interested persons an opportunity to present their views thereon, orally or in writing, within a reasonable period of time.
      2. After consideration of all views presented by interested persons, the board shall take appropriate action to issue the proposed rule or to amend or repeal an existing rule.
    1. The provisions of this subsection notwithstanding, if the board, under the authority of this subsection, adopts the Official Definitions of Feed Ingredients or Official Feed Terms as adopted by the Association of American Feed Control Officials, or regulations promulgated under the authority of the Federal Food, Drug, and Cosmetic Act, any amendment or modification adopted by said Association or by the United States Secretary of Health and Human Services in the case of regulations promulgated under the Federal Food, Drug, and Cosmetic Act, shall be adopted automatically under this chapter without regard to the publication of the notice required by this subsection (b), unless the board by order specifically determines that said amendment of modification shall not be adopted.

History. Acts 1997, No. 726, § 10; 2019, No. 315, § 26.

Amendments. The 2019 amendment substituted “Rules” for “Regulations” in the section heading; substituted “rules” for “regulations” and “rule” for “regulation” in the introductory language of (a); and substituted “rule” for “regulation” twice in (a)(2) and five times in (b)(1).

U.S. Code. The Federal Food, Drug, and Cosmetic Act, referred to in this section, is codified as 21 U.S.C. § 301 et seq.

2-37-111. Inspection, sampling, and analysis.

  1. For the purpose of enforcement of this chapter, and in order to determine whether its provisions have been complied with, including whether or not any operations may be subject to such provisions, officers or employees designated by the State Plant Board, upon presenting appropriate credentials, and notice to the owner, operator, or agent in charge, are authorized:
    1. To enter, during normal business hours, any factory, warehouse, or establishment within the state in which commercial feeds are manufactured, processed, packed, or held for distribution, or to enter any vehicle being used to transport or hold such feeds; and
    2. To inspect at reasonable times and within reasonable limits and in a reasonable manner, such factory, warehouse, establishment or vehicle and all pertinent equipment, finished and unfinished materials, containers, and labeling herein. The inspection may include the verification of only such records, and production and control procedures as may be necessary to determine compliance with the good manufacturing practice rules established under § 2-37-107(15).
  2. Notice shall be given for each such inspection, but a notice shall not be required for each entry made during the period covered by the inspection. Each such inspection shall be commenced and completed with reasonable promptness. Upon completion of the inspection the person in charge of the facility or vehicle shall be so notified.
  3. If the owner of any factory, warehouse, or establishment described in subsection (a), or his or her agent refuses to admit the board or its agent to inspect in accordance with subsections (a) and (b), the board is authorized to obtain from any state court a warrant directing such owner or his or her agent to submit premises described in such warrant to inspection.
  4. For the enforcement of this chapter, the board or its designated agent is authorized to enter upon any public or private premises including any vehicle of transport during regular business hours to have access to, and to obtain samples, and to examine records relating to distribution of commercial feeds.
  5. Sampling and analysis shall be conducted in accordance with methods published by the AOAC International or in accordance with other generally recognized methods.
  6. The results of all analyses of official samples shall be forwarded by the board to the person named on the label and to the purchaser. When the inspection and analysis of an official sample indicates a commercial feed has been adulterated or misbranded and upon request within thirty (30) days following the receipt of the analysis the board shall furnish to the registrant or licensee a portion of the sample concerned.
  7. The board, in determining for administrative purposes whether a commercial feed is deficient in any component, shall be guided by the official sample as defined in § 2-37-103(o) and obtained and analyzed as provided for in subsections (d) and (e) of this section.

History. Acts 1997, No. 726, § 11.

2-37-112. Detained commercial feeds.

  1. Withdrawal from Distribution Orders.
      1. When the State Plant Board or its authorized agent has reasonable cause to believe any lot of commercial feed is being distributed in violation of any of the provisions of this chapter or any of the prescribed rules under this chapter, the board may issue and enforce a written or printed “withdrawal from distribution” order, warning the distributor not to dispose of the lot of commercial feed in any manner until written permission is given by the board or the court.
      2. The board shall release the lot of commercial feed so withdrawn when the provisions and rules have been complied with.
      3. If compliance is not obtained the board may begin, or upon request of the distributor or registrant, shall begin proceedings for condemnation.
    1. A withdrawal from distribution order issued under this section expires thirty (30) days after the day it was first issued unless condemnation proceedings have begun in a court of competent jurisdiction.
  2. Condemnation and Confiscation.
    1. Any lot of commercial feed not in compliance with the provisions and rules shall be subject to seizure on complaint of the board to a court of competent jurisdiction in the area in which the commercial feed is located.
      1. In the event the court finds the commercial feed to be in violation of this chapter and orders the condemnation of the commercial feed, it shall be disposed of in any manner consistent with the quality of the commercial feed and the laws of the state.
      2. However, in no instance shall the disposition of the commercial feed be ordered by the court without first giving the claimant an opportunity to apply to the court for release of the commercial feed or for permission to process or re-label the commercial feed to bring it into compliance with this chapter.
    2. If the court orders the sale of the feed, the proceeds from the sale shall be remitted to the Treasurer of State to be credited to the General Revenue Fund Account of the State Apportionment Fund.

History. Acts 1997, No. 726, § 12.

2-37-113. Penalties.

  1. A person convicted of violating any of the provisions of this chapter or who shall impede, hinder, or otherwise prevent, or attempt to prevent, the State Plant Board or its authorized agent in performance of his or her duty in connection with the provisions of this chapter, shall be adjudged guilty of a violation punishable by a fine of not more than fifty dollars ($50.00) for the first violation, and not more than two hundred dollars ($200) for each subsequent violation, and the proceeds from such fines shall be remitted into the State Treasury to the credit of the General Revenue Fund Account of the State Apportionment Fund.
  2. Nothing in this chapter shall be construed as requiring the board or its representative to:
    1. Report for prosecution;
    2. Institute seizure proceedings; or
    3. Issue a withdrawal from distribution order, as a result of minor violations of the chapter, or when the board believes the public interest will best be served by suitable notice of warning in writing.
  3. In all prosecutions for violations of this chapter, the certificate of the analyst, or other officer making the analysis or examination, when sworn to or subscribed by the analyst or officer, shall be prima facie evidence of the facts therein certified.
  4. The board is authorized to apply for and the court to grant a temporary or permanent injunction restraining any person from violating or continuing to violate any of the provisions of this chapter or any rule promulgated under the chapter notwithstanding the existence of other remedies at law. The injunction shall be issued without bond.
  5. A person adversely affected by an act, order, or ruling of the board made under the provisions of this chapter may within forty-five (45) days thereafter bring action in the Pulaski County Circuit Court for judicial review of the actions. The form of the proceeding may be any which may be provided by statutes of this state to review decisions of administrative agencies, or in the absence or inadequacy thereof, any applicable form of legal action, including actions for declaratory judgments or writs of prohibitory or mandatory injunctions.
  6. A person who uses to his or her own advantage, or reveals to other than the board or officers of the board or other officers of state agencies, or to the courts when relevant in any judicial proceeding, any information acquired under the authority of this chapter, concerning any method, records, formulations, or processes which as a trade secret is entitled to protection, is guilty of a Class C misdemeanor; provided, that this prohibition shall not be deemed as prohibiting the board or its authorized agent, from exchanging information of a regulatory nature with authorized officials of the United States Government, or of other states, who are similarly prohibited by law from revealing this information.

History. Acts 1997, No. 726, § 13; 2005, No. 1994, § 20; 2019, No. 315, § 27.

Amendments. The 2005 amendment substituted “violation” for “misdemeanor” in (a); and substituted “Circuit” for “Chancery” in (e).

The 2019 amendment substituted “rule” for “regulation” in the first sentence of (d).

2-37-114. Cooperation with other entities.

The State Plant Board may cooperate with and enter into agreements with governmental agencies of this state, other states, agencies of the United States Government, and private associations in order to carry out the purpose and provisions of this chapter.

History. Acts 1997, No. 726, § 14.

Chapter 38 Livestock Running at Large or Straying

Research References

ALR.

Liability for damage to motor vehicle or injury to person riding therein resulting from collision with domestic animal at large in street or highway. 21 A.L.R.4th 159.

Liability for damage to motor vehicle or injury to person riding therein resulting from collision with domestic animal at large in street or highway. 29 A.L.R.4th 431.

Liability for damage to motor vehicle or injury to person riding therein from collision with runaway horse, or horse left unattended or untied in street. 49 A.L.R.4th 653.

Liability for personal injury or death caused by trespassing or intruding livestock. 49 A.L.R.4th 710.

Am. Jur. 4 Am. Jur. 2d, Animals, § 48 et seq.

C.J.S. 3A C.J.S., Animals, § 276 et seq.

Subchapter 1 — General Provisions

Cross References. Animals prohibited from running at large in cities or towns, impounding, § 14-54-1101.

Method of publication of advertisements, § 16-3-101.

Records of strays to be kept at each county site in counties having two political districts, § 14-15-901.

Effective Dates. Acts 1840, p. 94, § 4: effective on passage.

Acts 1845, p. 100, § 2: effective on passage.

Acts 1846, p. 28, § 9: effective on passage.

Acts 1875, No. 50, § 2: effective on passage.

Acts 1883, No. 121, § 4: effective on passage.

Acts 1893, No. 12, § 2: effective on passage.

Acts 1897, No. 40, § 2: effective on passage.

Acts 1901, No. 204, § 2: effective on passage.

2-38-101. Taking up animals.

Every citizen, a resident householder in any county in this state, on finding any horse, mare, mule, jack, or jenny or any domesticated bovine, hog, or sheep, of any age running at large, the owner of which is not known, may take the animal into his or her custody.

History. Rev. Stat., ch. 58, § 1; C. & M. Dig., § 268; Pope's Dig., § 282; A.S.A. 1947, § 78-1101; Acts 2019, No. 378, § 7.

Amendments. The 2019 amendment substituted “bovine, hog” for “cattle, hogs”.

2-38-102. Range animals.

No person shall take up any domesticated cattle, hogs, or sheep running in the range, unless they shall be found within his or her enclosure, from April 1 until November 1.

History. Rev. Stat., ch. 58, § 19; C. & M. Dig., § 269; Pope's Dig., § 283; A.S.A. 1947, § 78-1102.

2-38-103. Place of taking.

No person shall take up any stray animal, except on his or her own farm or in his or her immediate vicinity.

History. Rev. Stat., ch. 58, § 23; C. & M. Dig., § 270; Pope's Dig., § 284; A.S.A. 1947, § 78-1103.

2-38-104. Duty and rights of taker-up or impounder.

    1. Every person taking up any stray animal shall immediately, if the animal is marked or branded, proceed to the office of the clerk of the county court of the county in which the animal is taken up and shall cause the clerk to examine the State Brand Book.
    2. If it is found that the mark or brand upon the animal taken up is entered upon the book, the taker-up or impounder of the animal shall at once notify the owner of the mark or brand, of his or her having taken up the animal, giving an exact description thereof.
      1. The taker-up or impounder of an animal shall receive a reasonable compensation for his or her trouble.
      2. If the animal is taken from the range where the stock of the owner is accustomed to be kept, the taker-up or impounder shall receive nothing.
  1. No person shall use, work, or exercise any acts of ownership over any animal taken up by him or her until he or she shall have given notice thereof to the county court clerk. However, he or she may ride the animal to the county court for the purpose of giving the notice to the clerk.

History. Rev. Stat., ch. 58, §§ 2, 24; Acts 1875, No. 50, § 1, p. 130; 1883, No. 121, § 1, p. 298; C. & M. Dig., §§ 271, 296; Pope's Dig., §§ 285, 310; A.S.A. 1947, §§ 78-1104, 78-1130.

Case Notes

Larceny.

In a prosecution for larceny of the animals of another, one may set up as a defense his or her effort to comply with the stray laws; where such laws are not complied with, that fact may be considered by jury in determining whether accused took the animals with a felonious intent. Blackshare v. State, 94 Ark. 548, 128 S.W. 549 (1910).

2-38-105. Certificate of examination.

Upon the taker-up of any animal causing examination of the State Brand Book to be made by the county clerk as prescribed in § 2-38-104, the county clerk shall give to the impounder a certificate of the examination having been made, setting out in the certificate the description of the animal and the marks and brands, or either thereof, and the impounder shall pay the clerk twenty-five cents (25¢) as a fee for the certificate.

History. Acts 1883, No. 121, § 2, p. 298; C. & M. Dig., § 272; Pope's Dig., § 286; A.S.A. 1947, § 78-1105.

2-38-106. Posting description of animal.

  1. Upon failure to find any record of the mark or brand of the animal taken up or when the person in whose name the mark or brand is found recorded proves not to be the owner of the animal, the taker-up or impounder of the animal shall put or cause to be put up posters in three (3) of the most public places in the township or neighborhood where the animal is taken up, giving a full detailed description of the animal, stating the marks, age, color, and value of the animal. At the same time, the taker-up or impounder shall deliver to the clerk of the county court a copy of the poster, and the clerk shall at once enter a full copy of the poster in a book to be kept by him or her for that purpose and shall set up the poster upon the courthouse door.
  2. If, at the expiration of ten (10) days from the date of the poster, the animal has not been proved away, it shall be the duty of the impounder to give notice to the nearest justice of the peace of the county of the taking up of the animal. The impounder shall, at the time of giving notice, file with the justice of the peace the certificate of the clerk of the county court of the examination of the record of marks and brands if the animal taken up is marked or branded.
  3. If the animal should be proved away as provided in this section, it shall be the duty of the person proving away the animal to pay a reasonable charge for feeding and advertising the animal if the animal has not been used by the person taking it up. In this case no charge shall be made for feeding and advertising.

History. Acts 1883, No. 121, § 3, p. 298; C. & M. Dig., §§ 273, 274; Pope's Dig., §§ 287, 288; A.S.A. 1947, § 78-1106.

2-38-107. Oath of taker-up.

In addition to the notice required by law to be given to a county clerk of taking up of strays, it shall be the duty of the taker-up, at the time of giving the notice, to take also an oath before the clerk that the stray was taken up on the farm of the person, or in his or her immediate vicinity, and that he or she had no agency in bringing the stray into the vicinity.

History. Acts 1840, § 1, p. 94; C. & M. Dig., § 275, Pope's Dig., § 289; A.S.A. 1947, § 78-1107.

2-38-108. Certificate of appraisement.

  1. Every justice of the peace, on receiving notice of any animal being taken up, shall forthwith appoint three (3) appraisers, who shall be citizen householders of the county, to appraise and describe the animal.
    1. The appraisers appointed shall, as soon as practicable, proceed to view the animal and make out a detailed description, stating the marks, brands, age, color, stature, and value thereof, which description and valuation shall be signed by the appraisers and sworn to before the justice appointing them.
    2. For their services, they shall each receive the sum of fifty cents (50¢).
  2. The description and valuation so sworn to shall be delivered by the appraisers to the justice of the peace, who shall deliver to the person taking up the animal a copy thereof.
  3. The original of the certificate of appraisement of the justice shall, within ten (10) days, be deposited into the office of the clerk of the county court of his or her county.
  4. The justice, at the time of depositing the certificate of appraisement with the clerk for record, shall also file with the clerk the bond required by this subchapter, which bond shall be kept by the clerk.

History. Rev. Stat., ch. 58, §§ 3-6, 8; Acts 1893, No. 12, § 1, p. 18; C. & M. Dig., §§ 276-279, 281; Pope's Dig., §§ 290-293, 295; A.S.A. 1947, §§ 78-1108 — 78-1111, 78-1113.

Cross References. Clerk's fee for entering appraised value, § 21-6-406.

2-38-109. Bond of taker-up.

  1. Every person taking up an animal as a stray shall, at the time of the appraisement, enter into bond to the State of Arkansas, with sufficient security to be approved by the justice of the peace who appoints the appraisers, in the value of the animal. The bond shall be conditioned that, if the owner of the animal within one (1) year from the date shall appear and prove his or her property in the animal so taken up, then the taker-up will deliver the animal or, if the owner should fail to prove his or her property therein within one (1) year, conditioned that he or she, the obligor, will pay into the county treasury one-half (½) of the appraised value, deducting all legal expenses of the animal, stating the amount of the appraisement.
  2. If the animal is a hog, the conditions of the bond shall be that if the owner of the animal, within three (3) months from the date, shall appear and prove his or her property in the animal so taken up then he or she will deliver the animal or that if the owner should fail to prove his or her property therein within three (3) months, then he or she, the obligor, will pay into the county treasury one-half (½) of the appraised value, deducting all legal expenses of the animal.

History. Acts 1843, § 38, p. 130; 1901, No. 204, § 1, p. 370; C. & M. Dig., § 280; Pope's Dig., § 294; A.S.A. 1947, § 78-1112.

2-38-110. Records.

It is the duty of every clerk of the county court to keep a book in which he or she shall record all descriptions and valuations of animals taken. He or she shall also note on all bonds required to be deposited into his or her office under the provisions of this subchapter the time of filing them and keep the bonds safely for the use of the county.

History. Rev. Stat., ch. 58, § 9; C. & M. Dig., § 282; Pope's Dig., § 296; A.S.A. 1947, § 78-1114.

2-38-111. Advertisements to be posted.

  1. The person taking up any animal under the provisions of this subchapter shall immediately make out, from the copy of the appraisement delivered to him or her by the justice of the peace, four (4) advertisements and put them up in the most public places in his or her township and county.
  2. If any person shall fail to advertise any stray according to laws in force, he or she shall be deemed guilty of a misdemeanor. Upon conviction, an offender shall be fined in any sum not less than five dollars ($5.00) nor more than fifty dollars ($50.00), to be recovered by indictment or information in the county where the stray may have been taken up.

History. Rev. Stat., ch. 58, § 10; Acts 1842, § 3, p. 25; C. & M. Dig., §§ 283, 302; Pope's Dig., §§ 297, 316; A.S.A. 1947, §§ 78-1115, 78-1118.

2-38-112. Publication in addition to posting.

If the animal taken up is a horse, mare, mule, jack, or jenny, the taker-up shall cause a copy of the description and appraisement to be inserted in some newspaper printed in the state for three (3) weeks if the animal is of the appraised value of at least twenty dollars ($20.00). Publication shall be commenced in the newspaper within one (1) month after appraisement. This shall be done in addition to the advertisement required by this subchapter.

History. Rev. Stat., ch. 58, § 11; C. & M. Dig., § 284; Pope's Dig., § 298; A.S.A. 1947, § 78-1116.

2-38-113. Payment of expenses.

If the owner of any stray horse, mare, mule, jack, or jenny does not prove the stray according to law within twenty (20) days from the time the animal was taken up, the person taking it up shall pay the county clerk all fees, the necessary postage, and the price of the advertisement. The clerk shall immediately transmit, by mail or otherwise, to the printer a copy of the appraisement of the stray and shall account to the printer for all money received by him or her for printing.

History. Rev. Stat., ch. 58, § 25; Acts 1846, § 7, p. 28; C. & M. Dig., § 285; Pope's Dig., § 299; A.S.A. 1947, § 78-1117.

2-38-114. Stray pen — Exhibition.

  1. It is the duty of the county court, at the expense of the county, to provide a pound lot or stray pen sufficient to contain all stray horses, mares, mules, jacks, or jennies which may be taken up in their respective counties. The stray pen shall be within one-half (½) mile of the courthouse.
  2. On the first day of the next term of the circuit court of his or her county, every person taking up any horse, mare, mule, jack, or jenny shall take the animal to the stray pen of his or her county and keep it there, subject to the inspection of all persons from 11:00 a.m. until 3:00 p.m. of each day.

History. Rev. Stat., ch. 58, §§ 12, 13; C. & M. Dig., §§ 286, 287; Pope's Dig., §§ 300, 301; A.S.A. 1947, §§ 78-1119, 78-1120.

Case Notes

Exhibition Required.

Title to any of the animals mentioned in this section cannot be acquired by virtue of the stray laws unless the person taking it up exhibits it in the stray-pen of the county on the first day of the next term of the circuit court of his or her county. Smith v. Williams, 95 Ark. 587, 130 S.W. 168 (1910).

2-38-115. Reclamation by owner.

  1. Within one (1) year from the time of the filing of the bond required by law, if the owner of any stray animal shall appear and claim it, he or she shall notify the taker-up; and the owner shall establish his or her claim to the animal before some justice of the peace of the county by such evidence as shall be satisfactory to the justice.
  2. Upon the justice being satisfied of the ownership of the animal taken up, he or she shall make an order in writing requiring the taker-up of the animal to deliver it to the owner when he or she pays the legal costs that have accrued thereon.
    1. The person having the animal proved and required to be given up by the justice's order shall deliver it to the owner on receiving the amount of cost legally due and shall take a receipt endorsed on the justice's order for the animal.
    2. The order and receipt shall be filed with the clerk of the county court of the proper county, upon the filing of which, the bond shall be deemed to be cancelled.

History. Rev. Stat., ch. 58, §§ 14-16; Acts 1842, § 1, p. 25; C. & M. Dig., §§ 288-290; Pope's Dig., §§ 302-304; A.S.A. 1947, §§ 78-1121 — 78-1123.

Case Notes

Appeal.

An appeal does not lie from an order of a justice of the peace made under this section. Langley v. Barkman, 23 Ark. (10 Barber) 293 (1861).

2-38-116. Refusal to deliver.

If any person who has taken up any animal shall refuse to deliver it to the owner on his or her having complied with the requirements of this subchapter, as respects proving ownership of the animal, the owner shall have a right of civil action. If the owner recovers in an action, he or she shall also recover double costs.

History. Rev. Stat., ch. 58, § 18; C. & M. Dig., § 292; Pope's Dig., § 306; A.S.A. 1947, § 78-1125.

Cross References. Replevin, § 18-60-809.

Case Notes

Replevin.

The owner of a posted animal cannot maintain replevin therefor until he or she has proved his or her property before a justice of the peace and paid or tendered the costs to the taker-up. Phelan v. Bonham, 9 Ark. (4 English) 389 (1849); Davis v. Calvert, 17 Ark. (4 Barber) 85 (1856).

In replevin action, evidence of noncompliance with stray laws supported finding that taker-up fraudulently concealed cause of action from owner. Conditt v. Holden, 92 Ark. 618, 123 S.W. 765 (1909).

2-38-117. Compensation for keeping strays.

  1. No person shall charge anything for keeping any horse, mare, mule, jack, or jenny which may be worked or ridden while in the possession of the taker-up.
  2. For the keeping of other animals, or the named animals if not worked or ridden, the person taking them up shall be entitled to a reasonable compensation to be adjudged by the justice of the peace before whom the owner proves his or her right of property.

History. Rev. Stat., ch. 58, § 20; C. & M. Dig., § 293; Pope's Dig., § 307; A.S.A. 1947, § 78-1126.

2-38-118. No premature disposition of strays.

  1. No person taking up any animal shall sell, exchange, or dispose of it in any manner nor kill any domesticated cattle, hogs, or sheep until after the expiration of the time that the owner has the right to prove his or her property in them.
  2. Any person violating the provisions of subsection (a) of this section shall be deemed guilty of a misdemeanor and, upon conviction, shall be fined in any sum not less than half nor more than double appraised value of the stray so taken up, to be recovered in the county where the stray may have been taken up.

History. Rev. Stat., ch. 58, § 21; Acts 1842, § 2, p. 25; C. & M. Dig., §§ 294, 303; Pope's Dig., §§ 308, 317; A.S.A. 1947, §§ 78-1127, 78-1128.

2-38-119. Liability for death or escape of animals.

If any stray animals die or escape from the possession of the taker-up before the owner shall establish his or her right thereto, and if the death or escape is without the fault of the person having the lawful possession thereof, he or she shall not be liable for it.

History. Rev. Stat., ch. 58, § 22; C. & M. Dig., § 295; Pope's Dig., § 309; A.S.A. 1947, § 78-1129.

2-38-120. Forfeiture of right to animal.

If the owner of any stray animal does not appear and prove his or her property therein within one (1) year after the time of setting up the copies of the valuation and description of the animal and the filing of the bond required, he or she shall forfeit his or her right to the animal and the property shall be vested in the taker-up of it.

History. Rev. Stat., ch. 58, § 17; C. & M. Dig., § 291; Pope's Dig., § 305; A.S.A. 1947, § 78-1124.

2-38-121. Payment and filing required for unclaimed strays.

    1. Every person who shall take up a stray animal which shall not be reclaimed by the owner within one (1) year shall pay into the county treasury of the county in which the stray was taken up one-half (½) of the residue after deducting all legal expenses from the appraised value of the animal and shall file the county treasurer's receipt for it in the office of the county clerk.
      1. The county clerk shall charge the county treasurer with all such funds as shall be paid into the treasury; and
      2. These funds shall be apportioned among the several districts of the county as other funds are apportioned.
  1. After the term of one (1) year from the taking up of any animal, if the order of the justice of the peace requiring the taker-up of the animal to return the animal to the owner, with the owner's receipt thereon, shall not be filed with the clerk, or the one-half (½) of the appraised value paid into the treasury, and the county treasurer's receipt filed with the clerk, the clerk shall issue a notice to the delinquent to appear at the next session of the county court for that county and show cause, if any he or she can, why judgment shall not be entered against him or her, in favor of the state, for the benefit of the county.
  2. The notice shall be delivered by the clerk to the sheriff and served by him or her on the person.
    1. If no sufficient cause is shown, the court shall enter judgment against the delinquent for the amount due the county, with costs, and execution shall issue for it as in other cases.
    2. The cause shall be tried without the necessity of formal pleadings.

History. Rev. Stat., ch. 58, §§ 26-28; Acts 1845, § 1, p. 100; 1897, No. 40, § 1, p. 52; C. & M. Dig., §§ 297-300; Pope's Dig., §§ 311-314; A.S.A. 1947, §§ 78-1131 — 78-1134.

2-38-122. Judgment for costs.

If any person fails to file with the clerk of the county the treasurer's receipt or the receipt of the owner of the animal for which he or she executed his or her bond on taking it up, although he or she may have paid the amount due on the bond to the county treasurer or returned the animal in question to the proper owner, the court shall enter judgment against him or her for all costs.

History. Rev. Stat., ch. 58, § 29; C. & M. Dig., § 301; Pope's Dig., § 315; A.S.A. 1947, § 78-1135.

Subchapter 2 — Stallions, Mules, and Jacks

Research References

Ark. L. Rev.

Legislative and Judicial Dynamism in Arkansas: Poisson v. d'Avril, 22 Ark. L. Rev. 724.

Case Notes

Knowledge of Owner.

Owner of unaltered mule held not liable for damages where mule had broken out during the night without the owner's knowledge. Briscoe v. Alfrey, 61 Ark. 196, 32 S.W. 505 (1895).

Owner.

The word “owner” does not mean the one having absolute title but the one having the right to possession and control of the animal. Fraser v. Hawkins, 137 Ark. 214, 208 S.W. 296 (1919).

“Running at Large”.

Where a stallion broke out of his or her enclosure without his or her owner's knowledge, but was knowingly permitted to remain in another pasture without the other's consent, the animal was “running at large.” Fraser v. Hawkins, 137 Ark. 214, 208 S.W. 296 (1919).

Cited: Field v. Viraldo, 141 Ark. 32, 216 S.W. 8 (1919).

2-38-201. [Repealed.]

Publisher's Notes. This section, concerning horses, mules, or jacks running at large, was repealed by Acts 2005, No. 1994, § 533. The section was derived from Rev. Stat., ch. 74, § 1; C. & M. Dig., § 344; Pope's Dig., § 359; A.S.A. 1947, § 78-1136.

2-38-202. Right of person taking up.

    1. Any person may take up any seed horse, mule, or jack found running at large and, if not claimed within two (2) days, may castrate him.
    2. For this service, he or she shall be entitled to recover from the owner of any horse, mule, or jack, three dollars ($3.00), which may be recovered in a civil action before any justice of the peace of the county.
  1. Castration shall be done in the usual manner, so that the life of the animal shall be endangered as little as possible.

History. Rev. Stat., ch. 74, §§ 2, 3; C. & M. Dig., §§ 345, 346; Pope's Dig., §§ 360, 361; A.S.A. 1947, §§ 78-1137, 78-1138.

2-38-203. Right to kill certain stock — Notice.

If any horse, mule, or jack is running at large and cannot be taken up, it may be killed, if notice is first put up at the courthouse and at three (3) other of the most public places in the county, for ten (10) days, describing the color, marks, and brands, as nearly as practicable, of the animal and that it will be killed unless taken away and secured.

History. Rev. Stat., ch. 74, § 4; C. & M. Dig., § 347; Pope's Dig., § 362; A.S.A. 1947, § 78-1139.

Subchapter 3 — Animals Covered by Initiated Acts

Research References

Ark. L. Rev.

Absolute Liability in Arkansas, 8 Ark. L. Rev. 83.

2-38-301. Running at large unlawful when prohibited.

  1. In all counties of this state where there has been or may be submitted to the people by initiative petition a proposed act prohibiting horses, mules, cattle, hogs, sheep, and goats, or any of them, from running at large in the county and at an election held pursuant thereto, the electors voting thereon have enacted or shall enact such an act, it shall be unlawful from the effective date of the act for any animals, at any time during the year, to run at large and enter in and upon the fields and lands of the county, either enclosed or unenclosed.
    1. In every case of trespass by an animal described and prohibited by the initiated act, the owner of the animal shall be liable, for all damages it may do, to the person owning crops, to be established and recovered in a civil action.
    2. A lien shall exist against the animal in favor of the person whose crops may have been damaged or destroyed, and they may be sold under an order of the court rendering judgment for damages, to which shall be added any and all costs of taking up, feeding, and caring for the animal, and other costs.

History. Acts 1947, No. 199, § 1; A.S.A. 1947, § 78-1140.

2-38-302. Penalty for failing to take up trespassing animals.

    1. Any owner of an animal upon receiving notice either verbal or otherwise that the animal is at large and trespassing upon the land, premises, and crops of another person shall immediately take up the animal and thereafter confine it so that further depredations and damages shall be avoided.
      1. If for twenty-four (24) hours after notification being given to him or her, the owner shall fail, neglect, or refuse to take up the animal upon being notified that his or her animal is running at large and trespassing, the owner shall be guilty of a violation and upon conviction shall be fined a sum not less than ten dollars ($10.00) nor more than fifty dollars ($50.00).
      2. Each day the animal continues to run at large shall constitute a separate offense.
  1. When any initiated act duly adopted by the electors as provided prescribes penalties, the penalties of this section shall be cumulative and in addition to the penalties prescribed by the initiated act.

History. Acts 1947, No. 199, §§ 2, 3; A.S.A. 1947, §§ 78-1141, 78-1142; Acts 2005, No. 1994, § 21.

Amendments. The 2005 amendment, in (a)(2)(A), substituted “violation” for “misdemeanor” and made gender neutral changes.

2-38-303. Notice to owners of hogs and goats.

Hogs and goats when permitted to run at large are especially destructive of growing and unharvested crops of corn, oats, other small grains, and of winter cover crops; they are especially difficult and often practically impossible to catch and take up when preying upon these crops. To protect these crops, the animals must be removed or their destructiveness stopped without long delay. Therefore, a notice of twenty-four (24) hours shall be deemed sufficient to enable the owners of these animals to take up and confine them, the notice being sufficient if given verbally or otherwise to the owner, his or her agent, or his or her servant. If these animals are not taken up and confined, any person interested in the preservation of the crops either as landlord, tenant, cropper, or the agent or servant of either of them, may kill and destroy any offending hogs or goats and shall not be liable in damages for, or for the value of, the destroyed animals to any person because of having done so.

History. Acts 1947, No. 199, § 4; A.S.A. 1947, § 78-1143.

Subchapter 4 — Animals on Public Highways

Effective Dates. Acts 1955, No. 145, § 9: Mar. 4, 1955. Emergency clause provided: “It has been found and is declared by the General Assembly of Arkansas that animals running at large along and on the public highways of the State of Arkansas constitute a hazard to travelers upon said highways and have caused numerous highway accidents which have resulted in serious and painful injury and death to travelers upon the highway, and that the penalties provided for any person permitting animals to run at large upon the highway have been ineffective to eliminate this traffic hazard, and that there is urgent need for immediate action to render travel upon the highways less hazardous, and the enactment of this bill will reduce the hazards of highway travel. Therefore, an emergency is declared to exist, and this act being necessary for the preservation of the public peace, health and safety it shall take effect and be in force from the date of its approval.”

Case Notes

Enactment.

This subchapter did not have the effect of amending Initiated Act No. 1 of 1950 [repealed] so as to require passage by a two-thirds vote of all the members of each house of the General Assembly under the provisions of Ark. Const. Amend. 7. Staples v. Bishop, 225 Ark. 936, 286 S.W.2d 505 (1956).

2-38-401. Purpose.

It is the purpose of this subchapter to provide for more effective enforcement of the prohibition against cattle, horses, mules, hogs, sheep, or goats being allowed to run at large along or on any public highway in the State of Arkansas in violation of § 5-62-122.

History. Acts 1955, No. 145, § 1; A.S.A. 1947, § 78-1144.

2-38-402. Duty to impound.

It is the duty of the Department of Arkansas State Police and the sheriffs of the respective counties to restrain and impound any cattle, horses, mules, hogs, sheep, or goats found running at large along or on any public highway in the State of Arkansas.

History. Acts 1955, No. 145, § 2; A.S.A. 1947, § 78-1145.

2-38-403. Enclosures.

It is the duty of the county court of each county to provide an appropriate enclosure at the county farm or at some other place within the county for the impounding of cattle, horses, mules, hogs, sheep, or goats found running at large along or on any public highway in this state.

History. Acts 1955, No. 145, § 3; A.S.A. 1947, § 78-1146.

2-38-404. Delivery to enclosure.

  1. Any member of the Department of Arkansas State Police or any sheriff or deputy sheriff of any county who discovers or is advised of an animal running at large along or on any public highway shall arrange for the animal to be taken up and delivered to the enclosure provided by the county court in the county where the animal is at large.
  2. The cost of taking up and delivering the animal shall be borne by the county in which the animal is found running at large.

History. Acts 1955, No. 145, § 4; A.S.A. 1947, § 78-1147.

2-38-405. Notice of impounding.

When an animal found running at large along or on any public highway is delivered to the enclosure provided by the county court, the sheriff shall give notice of the impounding of the animal by causing a description of the animal to be inserted in some newspaper of general circulation in the county at least once a week for three (3) weeks. In addition to a description of the animal, the published notice shall also state the place where the animal was found running at large and the date and time of its being taken up.

History. Acts 1955, No. 145, § 5; A.S.A. 1947, § 78-1148.

2-38-406. Reclaiming by owner.

  1. The owner of any animal impounded under the provisions of this subchapter shall be permitted at any time within thirty (30) days from the date of first publication of notice of the impounding of the animal to reclaim the animal upon the payment of all costs incurred by the county in connection with the taking up and delivery of the animal to the enclosure, the feeding and care of the animal while impounded, and the cost of publication of notice.
    1. The animal shall be delivered to the owner if reclaimed in accordance with the provisions of this subchapter at the enclosure provided by the county court.
    2. All costs in connection with the removal of the animal from the enclosure shall be borne by the owner.
  2. The owner shall establish his or her claim to the animal before the sheriff by evidence as shall be satisfactory to the sheriff.

History. Acts 1955, No. 145, § 6; A.S.A. 1947, § 78-1149.

Case Notes

Constitutionality.

This section does not compel an owner of stock to be a witness against himself or herself in violation of Ark. Const., Art. 2, § 8, as it does not require an owner to reclaim his or her impounded stock but only permits it, and an owner by reclaiming his or her stock does not thereby admit that he or she has violated statutes prohibiting stock from running at large, as owner can only be guilty of violating these statutes if he or she knowingly permits his or her stock to run at large. Staples v. Bishop, 225 Ark. 936, 286 S.W.2d 505 (1956).

2-38-407. Sale of unclaimed animals.

If, at the expiration of thirty (30) days after notice was first posted, an animal found running at large along or on any public highway has not been claimed by its true owner, then it shall be the duty of the sheriff to sell the animal at public sale to the highest bidder after posting notice of sale in the courthouse for five (5) days.

History. Acts 1955, No. 145, § 7; A.S.A. 1947, § 78-1150.

2-38-408. Disposition of funds.

    1. The county shall be entitled to one dollar ($1.00) per day for each animal found running at large along or on any public highway and impounded.
    2. The sum shall be paid by the claimant-owner, as provided in § 2-38-406, or from the proceeds of the sale of the animal.
    1. If there is a balance remaining after the expenses are deducted from the proceeds of the sale, the balance shall be deposited into a special fund in the name of the sheriff.
    2. If the proceeds are not sufficient to pay the expenses incurred as provided in this section, the balance may be withdrawn from the fund provided for in subdivision (b)(1) of this section.
    3. At the end of each calendar year, any balance in this fund shall be deposited with the county treasurer to the credit of the county road fund.

History. Acts 1955, No. 145, § 8; A.S.A. 1947, § 78-1151.

Subchapter 5 — Feral Hogs

A.C.R.C. Notes. Acts 2017, No. 1010, §§ 1-3, provided:

“SECTION 1. Feral Hog Eradication Task Force.

“(a) The Feral Hog Eradication Task Force is created.

“(b) The task force shall be composed of:

“(1) The Director of the Arkansas State Game and Fish Commission;

“(2) The Secretary of the Arkansas Agriculture Department;

“(3) The Deputy Director of the Arkansas Livestock and Poultry Commission;

“(4) The Executive Director of the Arkansas Natural Resources Commission;

“(5) The Director of the Department of Arkansas Heritage;

“(6) The Director of the Rural Services Division of the Arkansas Economic Development Commission;

“(7) The Director of the Department of Parks and Tourism;

“(8) The University of Arkansas System Division of Agriculture Vice-President for Agriculture or his or her designee; and

“(9) One (1) representative from each of the following groups:

“(A) Arkansas Association of Counties;

“(B) Arkansas Association of Conservation Districts;

“(C) Arkansas Farm Bureau Federation;

“(D) Arkansas Forestry Association;

“(E) Arkansas Pork Producers Association;

“(F) Nature Conservancy; and

“(G) Arkansas Dog Hunters Association.

“(c) The task force may add members to the task force as advisory members.

“(d) The Arkansas Agriculture Department shall provide office space, staff and materials for the task force.

“(e) The task force shall select from its membership a chair and a vice chair.

“(f)(1) A majority of the membership shall constitute a quorum.

“(2) A majority vote of those members present shall be required for any action of the task force.

“(g) If a vacancy occurs in an appointed position, the vacancy shall be filled in the same manner as the original appointment.

“SECTION 2. Feral Hog Eradication Task Force — Duties.

“(a) The Feral Hog Eradication Task Force shall report on or before December 31, 2017, to the cochairs of the Legislative Council regarding the progress of the task force toward completing the project outlined in this section.

“(b) The task force shall create a plan for the eradication of feral hogs in Arkansas.

“(c) The plan created under this section shall include provisions for:

“(1) Controlling invasive feral hogs will take a long-term, cooperative approach with aggressive and effective strategies;

“(2) Four (4) tenets for effective population reduction and eradication efforts as the core principles to steer policy and guide the actions of the partnership, as follows:

“(A) Developing a multi-partner alliance to identify and address feral hog issues;

“(B) Increasing public understanding of the damage and harm caused by feral hogs;

“(C) Ensuring that sound regulatory mechanisms and enforcement capabilities exist to control illegal transport and release of feral hogs; and

“(D) Increasing resources for landowners and land managers to control feral hogs;

“(3) Developing and implementing of effective outreach tools to disseminate information to the public that defines the problems and issues associated with feral hogs;

“(4) Resolving ambiguities among existing statutes regarding livestock and feral hogs;

“(5) Appropriating, allocating, identifying, and pursuing known and alternative funding mechanisms to aid and administer the feral hog eradication program;

“(6) Strengthening existing possession and transport laws to increase penalties for persons convicted of transport and release of feral hogs;

“(7) Identifying:

“(A) Endangered and sensitive species; and

“(B) Critical, sensitive, or significant habitats, or eco-regions or counties, that have been damaged or are threatened by the negative impacts caused by feral hogs; and

“(8) Developing plans to:

“(A) Remediate feral hog damage; and

“(B) Remove feral hogs from feral-hog damaged areas using collaborative projects, tools, and funding for the benefit of the public and private lands and native flora and fauna held as public trust within those areas.

“SECTION 3. Expiration. This act expires on June 30, 2018.”

2-38-501. Definition.

As used in this subchapter:

    1. “Feral hog” means an animal or hybrid animal of either the family Suidae, including without limitation a wild hog, Russian or European wild boar, and Old World swine, or the family Tayassuidae, including without limitation peccary, javelina, and New World swine, that is or has been roaming freely upon public land or private land.
    2. “Feral hog” does not include:
      1. A stray domestic hog that has escaped from domestic confinement for less than:
        1. Five (5) calendar days; or
        2. Fifteen (15) calendar days if the owner of the stray domestic hog provides notice of the escape to all adjacent landowners within the first five (5) calendar days of the escape;
      2. A hog held by a zoo accredited by the Association of Zoos and Aquariums or by the designated caretakers of the University of Arkansas mascot; or
      3. A hog held while being transported to a livestock market or for slaughter and having a premises identification tag or other official eartag; and
  1. A “feral hog” is deemed to be a public nuisance.

History. Acts 1999, No. 457, § 1; 2007, No. 827, § 5; 2013, No. 1104, § 1; 2019, No. 991, § 1.

Amendments. The 2007 amendment rewrote the section.

The 2013 amendment redesignated and rewrote former (1) as (1)(A); rewrote (1)(B) and (1)(C); and substituted “a public nuisance” for “domestic livestock” in (2).

The 2019 amendment deleted former (1)(B) and redesignated former (1)(C) as (1)(B); and added (1)(B)(iii).

2-38-502. Capturing and killing feral hogs.

  1. A person may capture or kill a feral hog only as follows:
    1. On private land if the person is the landowner or lessee or has the permission of the landowner or lessee;
    2. On public land if:
      1. Allowed by the landowning entity; and
      2. The person possesses a valid Arkansas hunting license and complies with Arkansas hunting rules; or
    3. After providing verification that he or she has a valid permit issued by the Arkansas Livestock and Poultry Commission in accordance with 16 U.S.C. § 742j-1, as it existed on January 1, 2019, upon determining that the permit applicant has a bona fide need to kill feral hogs for protection of land, water, wildlife, livestock, domesticated animals, human life, or crops, and not for a recreational hunting purpose.
  2. A person whose hunting license is revoked shall not take or kill a feral hog during the period of the revocation.
    1. A feral hog captured by any means under subsection (a) of this section shall be immediately killed.
    2. If a feral hog is captured on private property and not moved from the private property, the landowner or lessee is not required to kill the feral hog immediately.
    1. A feral hog may be released into the wild only when the commission authorizes an employee of a state or federal agency to capture or release a feral hog, or both, for tracking or research purposes and with permission of the owner or lessee of the property.
    2. Feral hogs that are captured for the purpose of tracking or research shall be killed upon completion of the tracking or research project.
  3. A certified law enforcement officer or a public employee engaged in the performance of his or her official duties is exempt from the requirements under subdivisions (a)(2) and (3) of this section.

History. Acts 1999, No. 457, § 1; 2013, No. 1104, § 2; 2015, No. 723, § 1; 2017, No. 697, § 1; 2019, No. 991, § 2.

Amendments. The 2013 amendment rewrote the section.

The 2015 amendment substituted “under” for “in accordance with” in the introductory language of (c); deleted former (c)(2)(B); redesignated former (c)(2)(C) as present (c)(2)(B); and inserted present (c)(2)(C).

The 2017 amendment redesignated former (c)(1) as (c)(1)(A) and added (c)(1)(B); substituted “rules” for “regulations” in (c)(2)(B); and substituted “rules adopted” for “regulations promulgated” in (c)(2)(C)(ii).

The 2019 amendment rewrote (a)(2); added (a)(3); rewrote (c); and added (d) and (e).

2-38-503. Animal health requirements.

A feral hog shall be subject to animal health requirements established by the Arkansas Livestock and Poultry Commission.

History. Acts 1999, No. 457, § 5.

2-38-504. Releasing hogs into the wild.

  1. Except as provided in § 2-38-502(d), a person who knowingly releases or attempts to release a live hog upon public or private land upon conviction is guilty of an unclassified misdemeanor and is subject to a fine of not less than one thousand dollars ($1,000) per hog nor more than five thousand dollars ($5,000) per hog, imprisonment not exceeding ninety (90) days, or a combination of fine and imprisonment.
  2. Subsection (a) of this section does not prohibit a person from introducing a domestic hog for farm purposes onto private property enclosed with a fence sufficient under § 2-39-101 et seq. and with permission of the owner or lessee of the property.
  3. A person who knowingly purchases, sells, offers for sale, receives, possesses, imports, distributes, or transports a live feral hog upon conviction is guilty of an unclassified misdemeanor and is subject to a fine of one thousand dollars ($1,000) per hog or imprisonment not exceeding thirty (30) days, or both.
  4. Upon the arrest of a person under this section, the arresting law enforcement officer may seize and take custody of any hog in the possession of the arrested person and may seize any equipment used in furtherance of the violation, including without limitation a motor vehicle, trailer, and trap.
    1. A court having competent jurisdiction:
      1. Shall order the forfeiture and immediate euthanasia of any hog that was the basis of a conviction under this section;
      2. May order the forfeiture and immediate euthanasia of a hog before a conviction if the court determines that the hog poses an imminent risk to public health or safety; and
      3. May order the forfeiture of any seized equipment.
    2. However:
      1. A conveyance used by any person as a common carrier is not subject to forfeiture under this subsection unless it appears that the owner or other person in charge of the conveyance was a consenting party or privy to the commission or attempt to commit the violation;
      2. Equipment is not subject to forfeiture under this subsection by reason of any act or omission established by the owner of the equipment to have been committed or omitted without his or her knowledge or consent and without the knowledge or consent of any person having possession, care, or control of the equipment with the owner's permission; and
      3. A forfeiture of equipment encumbered by a security interest is subject to the security interest of the secured party if the secured party neither had knowledge of nor consented to the use of the equipment in the commission or attempt to commit the violation.
  5. In addition to the fines, penalties, and forfeitures imposed under this section, a court may require the defendant to make restitution to the state or any of its political subdivisions for transporting, housing, feeding, euthanizing, and disposing of any hog forfeited under this section.
  6. A certified law enforcement officer may write a citation for a violation under this section.
    1. Fines collected under this section shall be deposited into the Feral Hog Eradication Fund that is designated as special revenues for the Arkansas Natural Resources Commission.
    2. The funds designated under subdivision (h)(1) of this section are to be used for eradication efforts to eliminate feral hogs.
  7. This section does not apply to the purchase, sale, receipt, possession, import, or transportation of a live feral hog that serves as a mascot for an institution of higher education.

History. Acts 1999, No. 457, § 3; 2005, No. 1994, § 22; 2007, No. 827, § 6; 2011, No. 567, § 1; 2013, No. 1104, § 3; 2015, No. 723, §§ 2, 3; 2019, No. 991, §§ 3, 4.

Amendments. The 2005 amendment substituted “violation” for “misdemeanor” in (b).

The 2007 amendment substituted “knowingly” for “willfully” in (a).

The 2011 amendment deleted “Unless the landowner has consented” at the beginning of (a); and substituted “a fine of one thousand dollars ($1,000) for each hog released” for “a fine not to exceed five hundred dollars ($500)” in (b).

The 2013 amendment rewrote (a); redesignated and rewrote (b) as (b)(1); and added (b)(2) and (c) through (f).

The 2015 amendment, in (a), substituted “unclassified misdemeanor” for “unclassified felony” and “and revocation of his or her hunting and fishing rights in the state for up to five (5) years” for “or imprisonment not to exceed two (2) years, or both”; and added (g) through (i).

The 2019 amendment, in (a), substituted “Except as provided in § 2-38-502(d), a person” for “A person”, inserted “or private”, and substituted “imprisonment not exceeding ninety (90) days, or a combination of fine and imprisonment” for “and revocation of his or her hunting and fishing rights in the state for up to five (5) years”; rewrote (b); substituted “officer may seize” for “officer shall seize” in (d); substituted “A certified law enforcement officer” for “Any certified state law enforcement officer” in (g); and rewrote (h).

Chapter 39 Fences

Cross References. Leaving gate open or tearing down fence, § 18-60-104.

Removal of fences when erroneously placed, § 18-60-105.

Effective Dates. Acts 1899, No. 104, § 3: effective on passage.

Research References

Am. Jur. 4 Am. Jur. 2d, Animals, § 48 et seq.

Ark. L. Rev.

Absolute Liability in Arkansas, 8 Ark. L. Rev. 83.

C.J.S. 3A C.J.S., Animals, §§ 85, 277.

2-39-101. Kinds required for enclosures.

All fields and grounds kept for enclosures shall be enclosed with a fence.

History. Rev. Stat., ch. 76, § 1; Acts 1899, No. 104, § 1, p. 168; C. & M. Dig., § 4645; Pope's Dig., § 5734; A.S.A. 1947, § 78-1201; Acts 2001, No. 176, § 1.

Research References

U. Ark. Little Rock L. Rev.

Survey of Legislation, 2001 Arkansas General Assembly, Agricultural Law, 24 U. Ark. Little Rock L. Rev. 403.

2-39-102. Definition of fence.

As used in this chapter and all laws referring to this chapter, “fence” means a structure that is a boundary or barrier that limits human, livestock, or vehicle ingress or egress in an area.

History. Rev. Stat., ch. 76, §§ 2, 3; Acts 1899, No. 104, § 2, p. 168; C. & M. Dig., §§ 4646, 4647; Pope's Dig., §§ 5735, 5736; A.S.A. 1947, §§ 78-1202, 78-1203; Acts 2001, No. 176, § 2; 2013, No. 960, § 1.

Amendments. The 2013 amendment rewrote this section.

Research References

U. Ark. Little Rock L. Rev.

Survey of Legislation, 2001 Arkansas General Assembly, Agricultural Law, 24 U. Ark. Little Rock L. Rev. 403.

2-39-103, 2-39-104. [Repealed.]

Publisher's Notes. These sections, concerning wire fences, were repealed by Acts 2001, No. 176, § 3. The sections were derived from the following sources:

2-39-103. Acts 1881, No. 77, § 1, p. 145; 1889, No. 87, § 1, p. 117; C. & M. Dig., § 4648, Pope's Dig., § 5737, A.S.A. 1947, § 78-1204.

2-39-104. Acts 1899, No. 100, § 1, p. 163; C. & M. Dig., § 4649; Pope's Dig., § 5738; A.S.A. 1947, § 78-1205.

For present law, see § 2-39-102.

2-39-105. Maintenance of division fences.

When any person encloses any land adjoining another's land already enclosed with a fence so that any part of the fence first made becomes the partition fence between them, then, in such case, the charge of the division fence, as far as it is enclosed on both sides, shall be equally borne and maintained by both parties.

History. Rev. Stat., ch. 76, § 8; C. & M. Dig., § 4654; Pope's Dig., § 5743; A.S.A. 1947, § 78-1210.

Case Notes

Conveyance.

An agreement for the conveyance of an undivided interest in a partition fence must be in writing. Rudisill v. Cross, 54 Ark. 519, 16 S.W. 575 (1891).

Failure to Maintain.

Failure to maintain his or her half of division fence renders adjoining landowner liable for damages. Primrose v. Brown, 173 Ark. 632, 292 S.W. 1003 (1927).

The obligation of adjoining landowners to maintain a partition fence being mutual, one who failed to stop holes in such a fence could not complain of damages by hogs of the adjoining proprietor. Wilkerson v. White, 182 Ark. 1014, 33 S.W.2d 365 (1930).

Plaintiff could not recover damages due to defendant's cattle coming through hole in fence and eating hay where high waters made hole in fence, since it was the duty of the plaintiff as well as the defendant to repair fence. Kennard v. Fudge, 219 Ark. 157, 240 S.W.2d 664 (1951).

2-39-106. Sufficiency.

In all cases, the sufficiency of a fence shall be judged by the persons summoned to view the fence in accordance with the provisions of this chapter.

History. Rev. Stat., ch. 76, § 4; C. & M. Dig., § 4650; Pope's Dig., § 5739; A.S.A. 1947, § 78-1206.

2-39-107. View of fence.

Upon the complaint of the party injured to any justice of the peace of the township, the justice shall issue an order to three (3) disinterested householders of the neighborhood not related to the parties, reciting the complaint and requiring them to view the fence where the trespass is complained of and take a memorandum of it. Their testimony in that case shall be good evidence on the trial touching the lawfulness of the fence.

History. Rev. Stat., ch. 76, § 6; C. & M. Dig., § 4652; Pope's Dig., § 5741; A.S.A. 1947, § 78-1208.

2-39-108. Animals breaking into enclosures.

If any horse, cattle, or other stock shall break into any enclosure or if any hog, pig, or shoat shall break into any enclosure, the owner of the creature shall:

  1. For the first trespass, make reparation to the party injured for the true value of the damages he or she may have sustained;
  2. For every trespass after the first trespass, double damages to be recovered with costs, before any justice of the peace or court having jurisdiction over the trespass, in the name of the injured party; and
  3. For the third offense from any animal named breaking into the enclosure, the party injured may kill and destroy the animal so trespassing without being answerable for it.

History. Rev. Stat., ch. 76, § 5; C. & M. Dig., § 4651; Pope's Dig., § 5740; A.S.A. 1947, § 78-1207; Acts 2001, No. 176, § 4.

Research References

U. Ark. Little Rock L. Rev.

Survey of Legislation, 2001 Arkansas General Assembly, Agricultural Law, 24 U. Ark. Little Rock L. Rev. 403.

2-39-109. Damage by motor vehicle.

In instances where a motor vehicle damages the fence or gate belonging to a person other than himself or herself and the damage allows livestock to escape, the owner of the livestock shall not be liable for damage caused by the livestock until he or she has had actual notice of their escape and a reasonable opportunity to repair the fence or gate and recover the livestock.

History. Acts 1981, No. 498, § 2; A.S.A. 1947, § 78-1207.1.

2-39-110. Liability for injuring animals.

If any person damaged for the want of a sufficient fence shall hurt, wound, lame, or kill, or cause the same thing to be done by shooting, hunting with a dog, or otherwise, any animal mentioned in this chapter, with the exception of a feral hog, the person shall be liable to the owner of the animal for double damages, with costs.

History. Rev. Stat., ch. 76, § 7; C. & M. Dig., § 4653; Pope's Dig., § 5742; A.S.A. 1947, § 78-1209; Acts 1999, No. 457, § 2.

Case Notes

Evidence.

Evidence sufficient to support fine and judgment for damages. Napier v. State, 220 Ark. 208, 247 S.W.2d 203 (1952) (decision under prior law).

2-39-111. Liability for damaging fence, etc.

A person who willfully cuts or otherwise damages the fence, gate, or gate lock of another shall be liable for triple damage plus attorney's fees and other costs.

History. Acts 1985, No. 906, § 1; A.S.A. 1947, § 78-1329.1.

Chapter 40 Control of Contagious Diseases

A.C.R.C. Notes. References to “this chapter” in subchapters 1-12 may not apply to subchapter 13 which was enacted subsequently.

References to “this chapter” in subchapters 1-12 may not apply to § 2-40-508 which was enacted subsequently.

Research References

ALR.

Seller's liability for sale of livestock infected with communicable disease. 14 A.L.R.4th 1096.

Am. Jur. 4 Am. Jur. 2d, Animals, § 35 et seq.

Ark. L. Notes.

Looney, The Toothless Cow, the Little Bull That Couldn't, and Udder Matters: Livestock Warranties and the Uniform Commercial Code, 1990 Ark. L. Notes 75.

C.J.S. 3A C.J.S., Animals, § 122 et seq.

Subchapter 1 — General Provisions

Effective Dates. Acts 1925, No. 224, § 6: effective on passage.

Acts 1929, No. 84, § 6: effective on passage. Emergency declared. Approved Mar. 2, 1929.

Acts 1987, No. 413, § 3: Mar. 26, 1987. Emergency clause provided: “It is hereby found and determined by the General Assembly that when disease breaks out in a poultry flock, it may spread rapidly from that flock to other flocks nearby unless the diseased poultry is destroyed immediately; that in order to avoid the spread of poultry disease, it is urgent that the Livestock and Poultry Commission be granted the authority to acquire diseased flocks of poultry through negotiation or condemnation and to destroy those flocks to prevent further spread of the disease; that this act grants such authority to the Livestock and Poultry Commission and should be given effect immediately. Therefore, an emergency is hereby declared to exist and this act being necessary for the preservation of the public peace, health and safety shall be in full force and effect from and after its passage and approval.”

2-40-101, 2-40-102. [Repealed.]

Publisher's Notes. These sections, concerning penalties and administration, were repealed by Acts 2017, No. 1011, §§ 36, 37. The sections were derived from the following sources:

2-40-101. Acts 1907, No. 409, §§ 4, 7, p. 1043; C. & M. Dig., §§ 351, 354; Pope's Dig., §§ 376, 379; Acts 1981, No. 823, § 1; A.S.A. 1947, §§ 78-404, 78-407; Acts 2005, No. 1994, § 23.

2-40-102. Acts 1907, No. 409, § 1, p. 1043; C. & M. Dig., § 348; Pope's Dig., § 363; A.S.A. 1947, § 78-401.

2-40-103. Duties and enforcement.

  1. It is the duty of the Arkansas Livestock and Poultry Commission to:
    1. Inquire into and investigate all outbreaks of contagious or infectious disease of animals;
    2. Establish and promulgate rules in regard to isolation or quarantine of infected animals, disinfection of animals and premises, destruction of incurably diseased animals, and disposal of carcasses as it may deem necessary to prevent the spread of disease;
    3. Promulgate rules for the protection of areas from which animal diseases may be eradicated; and
    4. Draft rules for compensation for owners of exposed or diseased animals and contaminated equipment or other material unsuitable for proper disinfection or destroyed, or for others for any other necessary expenses or for any other purpose, indemnity being subject to available funds.
  2. Any federal veterinary inspector working in Arkansas cooperating with the commission shall have the power of enforcing the rules of the commission.

History. Acts 1907, No. 409, §§ 2, 9, p. 1043; C. & M. Dig., §§ 349, 356; Acts 1925, No. 224, § 1; 1929, No. 84, § 1; Pope's Dig., §§ 372, 381; A.S.A. 1947, §§ 78-402, 78-410; Acts 2017, No. 1011, § 38.

Amendments. The 2017 amendment inserted “and investigate” in (a)(1); and deleted former (a)(3) and (a)(6) and redesignated the remaining subdivisions accordingly.

Research References

Ark. L. Rev.

Legal Control of Business in Arkansas, 5 Ark. L. Rev. 137.

2-40-104, 2-40-105. [Repealed.]

Publisher's Notes. These sections, concerning duty to report, and inspectors and agents, were repealed by Acts 2017, No. 1011, §§ 39, 40. The sections were derived from the following sources:

2-40-104. Acts 1907, No. 409, § 6, p. 1043; C. & M. Dig., § 353; Pope's Dig., § 378; A.S.A. 1947, § 78-406.

2-40-105. Acts 1907, No. 409, § 8, p. 1043; C. & M. Dig., § 355; Pope's Dig., § 380; A.S.A. 1947, § 78-409; Acts 1995, No. 236, § 23.

2-40-106. Examinations and findings.

    1. Any veterinary inspector or other employee duly authorized by the Arkansas Livestock and Poultry Commission shall have the privilege of entering upon any property or premises in this state for the purpose of examining or testing animals which he or she has reason to believe are affected with a contagious or infectious disease so as to constitute a menace to the livestock and poultry of the community.
    2. He or she may call on one (1) or more peace officers. It shall be their duty to give him or her all assistance in their power.
    1. When ordered by the State Veterinarian, owners or persons in charge of animals shall assemble them at a designated time and place for the purpose of examining, testing, treating, necropsy, disinfecting, or for any other purpose.
      1. If after examination of suspected animals the veterinary inspector shall find them to be affected with any reportable disease, he or she shall furnish the owner or person in charge of the animals with a report of his or her findings and with a copy of the existing law and rules of the commission in regard to the disease.
      2. Any person who, after notification, shall fail to comply with the rules shall be guilty of an administrative penalty. He or she shall also be liable for damages to others due to infection from his or her stock.

History. Acts 1907, No. 409, §§ 3, 5, p. 1043; C. & M. Dig., §§ 350, 352; Acts 1929, No. 84, § 3; Pope's Dig., §§ 374, 377; A.S.A. 1947, §§ 78-403, 78-405; Acts 2017, No. 1011, § 41.

Amendments. The 2017 amendment inserted “and poultry” in (a)(1); deleted “In case of opposition or hindrance” at the beginning of (a)(2); in (b)(1), deleted “of the commission” following “State Veterinarian” and substituted “necropsy” for “autopsy”; redesignated former (b)(2)(A)(i) as (b)(2)(A); substituted “any reportable” for “glanders or other contagious or infectious” in (b)(2)(A); deleted former (b)(2)(A)(ii); and, in (b)(2)(B), substituted “an administrative penalty” for “a misdemeanor” and deleted the former second sentence.

2-40-107, 2-40-108. [Repealed.]

Publisher's Notes. These sections, concerning expenses and anthrax spore vaccine, were repealed by Acts 2017, No. 1011, §§ 42, 43. The sections were derived from the following sources:

2-40-107. Acts 1907, No. 409, § 17, p. 1043; C. & M. Dig., § 364; Pope's Dig., § 389; A.S.A. 1947, § 78-411.

2-40-108. Acts 1907, No. 409, § 16, p. 1043; C. & M. Dig., § 363; Acts 1925, No. 224, § 2; Pope's Dig., § 388; A.S.A. 1947, § 78-604.

2-40-109. Destruction of diseased poultry flocks.

  1. When the Arkansas Livestock and Poultry Commission determines that any flock of chickens, turkeys, ducks, geese, or other poultry is infected with a reportable disease, the flock may be depopulated or condemned and properly disposed of to prevent the spread of the disease.
  2. The commission is authorized to adopt rules to prescribe the procedures for condemning a diseased poultry flock as authorized in this section.

History. Acts 1987, No. 413, § 1; 2017, No. 1011, § 44.

Amendments. The 2017 amendment, in (a), substituted “infected with a reportable disease the flock may be depopulated or condemned” for “diseased and that the flock should be destroyed” and deleted “the commission may negotiate for and buy that flock at a price that would reasonably approximate the market value of that flock if it were not diseased and may dispose of the diseased poultry in such manner as it deems appropriate to prevent the spread of the disease” from the end; deleted former (b); redesignated former (c) as (b); and deleted “if the procedures for condemnation shall provide the owner an opportunity to be heard in the matter, shall assure him or her fair compensation for the birds, and shall otherwise afford the owner full due process of law in the condemnation process” from the end of (b).

2-40-110. Canine brucellosis.

    1. If a dog tests positive for canine brucellosis, the owner shall:
      1. Report the test results to the Arkansas Livestock and Poultry Commission;
      2. Immediately have the dog neutered, spayed, or euthanized; and
      3. Immediately test all other sexually intact dogs on the premises for canine brucellosis.
    2. If the owner is unknown, then the person having custody of the dog shall comply with this section.
    3. The sale or adoption of sexually intact dogs from a positive premises is prohibited.
  1. A person who violates this section is subject to an administrative penalty.

History. Acts 2003, No. 1771, § 1; 2017, No. 1011, § 45.

Amendments. The 2017 amendment substituted “euthanized” for “destroyed” in (a)(1)(B); added (a)(1)(C); added (a)(3); and substituted “A person who violates this section is subject to an administrative penalty” for “A violation of this section is a Class A misdemeanor” in (b).

Research References

U. Ark. Little Rock L. Rev.

Survey of Legislation, 2003 Arkansas General Assembly, Agricultural Law, 26 U. Ark. Little Rock L. Rev. 347.

Subchapter 2 — Arkansas Livestock and Poultry Commission Programs

A.C.R.C. Notes. References to “this subchapter” in §§ 2-40-2012-40-209 may not apply to § 2-40-210 which was enacted subsequently.

Publisher's Notes. This subchapter may affect § 2-40-501 et seq.

Effective Dates. Acts 1985, Nos. 150 and 151, § 10: Feb. 19, 1985. Emergency clause provided: “It is hereby found and determined by the General Assembly that the Livestock and Poultry Commission is without legislative authority to properly carry out its charge to control, supress and eradicate livestock and poultry diseases and pests and supervise livestock and poultry sanitary work in this state; that this act is designed to clarify and expand the authority of the commission in the area of disease and should be given effect immediately in order that epidemics of disease in livestock and poultry may be avoided. Therefore, an emergency is hereby declared to exist and this act being necessary for the preservation of the public peace, health and safety shall be in full force and effect from and after its passage and approval.”

Acts 1989 (1st Ex. Sess.), No. 192, § 32: July 1, 1989. Emergency clause provided: “It is hereby found and determined by the Seventy-Seventh General Assembly, that the Constitution of the State of Arkansas prohibits the appropriation of funds for more than a two (2) year period; that the effectiveness of this Act on July 1, 1989 is essential to the operation of the agency for which the appropriations in this Act are provided, and that in the event of an extension of the Regular Session, the delay in the effective date of this Act beyond July 1, 1989 could work irreparable harm upon the proper administration and provision of essential governmental programs. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after July 1, 1989.”

Acts 1997, No. 250, § 258: Feb. 24, 1997. Emergency clause provided: “It is hereby found and determined by the General Assembly that Act 1211 of 1995 established the procedure for all state boards and commissions to follow regarding reimbursement of expenses and stipends for board members; that this act amends various sections of the Arkansas Code which are in conflict with the Act 1211 of 1995; and that until this cleanup act becomes effective conflicting laws will exist. Therefore an emergency is declared to exist and this act being immediately necessary for the preservation of the public peace, health and safety shall become effective on the date of its approval by the Governor. If the bill is neither approved nor vetoed by the Governer [sic], it shall become effective on the expiration of the period of time during which the Governor may veto the bill. If the bill is vetoed by the Governor and the veto is overridden, it shall become effective on the date the last house overrides the veto.”

Acts 2019, No. 910, § 6346(b): July 1, 2019. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that this act revises the duties of certain state entities; that this act establishes new departments of the state; that these revisions impact the expenses and operations of state government; and that the sections of this act other than the two uncodified sections of this act preceding the emergency clause titled ‘Funding and classification of cabinet-level department secretaries’ and ‘Transformation and Efficiencies Act transition team’ should become effective at the beginning of the fiscal year to allow for implementation of the new provisions at the beginning of the fiscal year. Therefore, an emergency is declared to exist, and Sections 1 through 6343 of this act being necessary for the preservation of the public peace, health, and safety shall become effective on July 1, 2019”.

2-40-201 — 2-40-204. [Repealed.]

Publisher's Notes. These sections, concerning provisions supplemental, authority of commission generally, power of subpoena, and testing and vaccination of livestock, were repealed by Acts 2017, No. 1011, §§ 46-49. The sections were derived from the following sources:

2-40-201. Acts 1985, No. 150, § 8; 1985, No. 151, § 8; A.S.A. 1947, § 78-479n.

2-40-202. Acts 1985, No. 150, § 1; 1985, No. 151, § 1; A.S.A. 1947, § 78-475.

2-40-203. Acts 1985, No. 150, § 1; 1985, No. 151, § 1; A.S.A. 1947, § 78-475.

2-40-204. Acts 1985, No. 150, § 1; 1985, No. 151, § 1; A.S.A. 1947, § 78-475.

2-40-205. Blood test training program.

  1. No person shall perform any program or certifying blood tests on livestock or poultry unless the person has first completed a blood test training program designed and conducted by the State Veterinarian and has obtained a tester's permit from the State Veterinarian.
  2. These technicians shall be used at the market, where economically feasible, except when in violation of state law or rule or federal law, rule, or regulation.

History. Acts 1985, No. 150, § 3; 1985, No. 151, § 3; A.S.A. 1947, § 78-477; Acts 2019, No. 315, § 28.

Amendments. The 2019 amendment substituted “state law or rule or federal law, rule, or regulation” for “state or federal law or regulation” in (b).

2-40-206. Funding of bovine disease program.

      1. In order to fund or partially fund the bovine disease control and eradication program, there is levied a fee of one dollar ($1.00) per head on all cattle sold in this state to be used for the bovine disease control and eradication program.
        1. However, if the Director of the Arkansas Livestock and Poultry Commission determines there is an emergency, the Arkansas Livestock and Poultry Commission may promulgate a rule to temporarily raise the fee set in subdivision (a)(1)(A) of this section after receiving approval of the rule from the Legislative Council or, if the General Assembly is in session, the Joint Budget Committee.
        2. A rule adopted to raise the fee under this subdivision (a)(1)(B) shall be effective only during the period of time the emergency persists or for one (1) year, whichever is shorter.
        3. If an emergency persists after one (1) year, the commission may promulgate a rule to extend the increased fee for additional one-year periods by following the procedures stated in subdivision (a)(1)(B)(i) of this section each year the rule increasing the fee is to be effective.
        4. The commission shall not adopt an emergency rule to raise the fee under this subdivision (a)(1)(B).
    1. The fee shall not be assessed on the resale of any cattle within ten (10) calendar days after the prior sale if the fee was paid on the prior sale.
    1. The fee shall be collected by the purchaser and remitted monthly to the Secretary of the Department of Finance and Administration, except that if the sale occurs through a livestock auction market or any other agent of the seller, the livestock auction market or other agent shall collect and remit the fee. The Secretary of the Department of Finance and Administration may promulgate such rules as he or she deems necessary to implement the collection of the fee.
      1. After deducting three percent (3%) for credit to the Constitutional Officers Fund and the State Central Services Fund the remainder of funds so remitted to the Secretary of the Department of Finance and Administration shall be deposited into the State Treasury as special revenues and credited to the Livestock and Poultry Commission Disease and Pest Control Fund.
      2. Before the close of each fiscal year, the Chief Fiscal Officer of the State shall determine the amount of funds which will remain at the end of the fiscal year in the Livestock and Poultry Commission Disease and Pest Control Fund from fees collected under the provisions of this section. He or she shall allow such funds to be carried forward and made available for the same purposes in the next-succeeding fiscal year.
      3. The Secretary of the Department of Finance and Administration shall release all information related to the fee levied per head on all cattle sold in the state to be used for the bovine disease control and eradication fund when requested by the Secretary of the Department of Agriculture.

History. Acts 1985, No. 150, § 1; 1985, No. 151, § 1; A.S.A. 1947, § 78-475; Acts 1989 (1st Ex. Sess.), No. 192, § 26; 2015, No. 342, § 1; 2015, No. 1077, § 1; 2017, No. 1011, § 50; 2019, No. 910, § 3297.

A.C.R.C. Notes. Acts 2015, No. 342, § 1 is amended by Acts 2015, No. 1077, § 1.

Amendments. The 2015 amendment by No. 342, in present (a)(1)(A), substituted “bovine disease” for “brucellosis” following “partially fund the” and substituted “bovine disease control and eradication” for “brucellosis” near the end.

The 2015 amendment by No. 1077 inserted designation (a)(1)(A); in (a)(1)(A), substituted “is levied” for “is hereby levied until July 1, 1990” and “to be used for” for “after which the Arkansas Livestock and Poultry Commission shall establish the amount of the fee it feels necessary to continue”; and added (a)(1)(B).

The 2017 amendment, in (a)(1)(B)(i), substituted “Deputy Director” for “Executive Director” and the second occurrence of “Arkansas Livestock and Poultry Commission” for “executive director”; substituted “commission” for “executive director” in (a)(1)(B)(iv); and added (b)(2)(C).

The 2019 amendment substituted “Secretary of the Department of Finance and Administration” for “Director of the Department of Finance and Administration” in the first sentence of (b)(1) and for “director” throughout (b); and substituted “Department of Agriculture” for “Arkansas Agriculture Department” in (b)(2)(C).

2-40-207. Costs of on-the-farm calfhood vaccinations.

The costs of on-the-farm calfhood vaccination performed by the Arkansas Livestock and Poultry Commission shall be paid from state or federal funds. Nothing herein shall be construed to prohibit a livestock owner from contracting with and compensating a veterinarian for vaccinating his or her livestock. Veterinarians shall not charge both the livestock owner and the state or federal government for the same calfhood vaccination.

History. Acts 1985, No. 150, § 7; 1985, No. 151, § 7; A.S.A. 1947, § 78-479; Acts 1989 (1st Ex. Sess.), No. 192, § 27.

2-40-208. Inspection of livestock markets.

    1. The Arkansas Livestock and Poultry Commission shall prescribe minimum sanitary and health standards for livestock markets in the state to promote and protect the health of livestock handled at these markets and the health of personnel working in the markets.
    2. The commission or its agents shall periodically inspect the markets for compliance with the sanitary and health standards.
    1. If the commission or its agents find that any market is not in compliance with such standards, it shall notify the operator of the market, in writing, of areas in which the market is out of compliance.
    2. The market operator shall, within fifteen (15) days after receipt of the notice, certify to the commission the steps it has taken to comply with the standards.
      1. If the operator fails to respond or if the commission or its agents determine that the market has not complied with the health and sanitation standards, the market shall be inspected by a committee consisting of:
        1. One (1) livestock market representative;
        2. Two (2) livestock producers; and
        3. The State Veterinarian.
      2. Members of the committee shall be appointed by the chair of the commission, and these members shall be from outside the livestock market's trade area.
    1. If the committee finds that the market does not meet the prescribed sanitary standards, the commission shall order the market closed immediately until the market is found to be in compliance with the health and sanitation standards.
    2. Members of the commission may receive expense reimbursement and stipends in accordance with § 25-16-901 et seq.

History. Acts 1985, No. 150, § 2; 1985, No. 151, § 2; A.S.A. 1947, § 78-476; Acts 1997, No. 250, § 9; 2007, No. 827, § 7.

Amendments. The 2007 amendment substituted “shall” for “is authorized and directed to” in (a)(1).

2-40-209. Quarantine — Violations.

  1. The Arkansas Livestock and Poultry Commission is authorized to adopt appropriate rules regarding the isolation or quarantine of infected, exposed, or suspected infected livestock or poultry.
  2. Any person or entity who violates the quarantine rules lawfully promulgated by the commission shall be subject to an administrative penalty.

History. Acts 1985, No. 150, § 4; 1985, No. 151, § 4; A.S.A. 1947, § 78-478; Acts 2017, No. 1011, § 51.

Amendments. The 2017 amendment, in (b), deleted “and regulations” following “rules” and substituted “shall be subject to an administrative penalty” for “pursuant to its statutory authority shall, upon conviction be guilty of a Class A misdemeanor”.

2-40-210. Control and eradication of brucellosis.

    1. Any bovine herd infected with or directly exposed to brucellosis shall be depopulated at the discretion of and subject to the rules of the Arkansas Livestock and Poultry Commission.
    2. The herd or herds shall be identified and destroyed within thirty (30) days of written order to the owner or owners.
      1. The owners will be notified by delivery of the order or by certified mail.
      2. One (1) extension of thirty (30) days, if presented in writing to the commission, will be considered in extenuating circumstances.
  1. The commission shall adopt appropriate rules concerning depopulation, negotiation, and hearing procedures.
    1. The State Veterinarian or his or her designated representative will negotiate with the owner through the use of available federal and state funds to depopulate brucellosis-infected or exposed bovine herds.
    2. If the State Veterinarian and the herd owner are unable to arrive at an agreement to depopulate infected or exposed bovine herds, the commission, on advice of the State Veterinarian and in public meeting, is authorized to issue a written order to depopulate a herd and to provide indemnification to the herd owner at the current established per-head rate, with such indemnification to be paid from federal and state funds available therefor.
      1. Should the herd owner desire, the commission will hear testimony by the owner and any witnesses he or she desires to present arguments as to why the herd or herds should not be depopulated.
      2. Following the hearing, the commission shall determine whether to affirm or repeal its order to depopulate.
  2. Any person or entity who violates the provisions of this section shall be subject to an administrative penalty.

History. Acts 1995, No. 128, §§ 1-5; 1995 No. 140, §§ 1-5; 2017, No. 1011, § 52.

A.C.R.C. Notes. References to “this subchapter” in §§ 2-40-2012-40-209 may not apply to this section which was enacted subsequently.

Amendments. The 2017 amendment substituted “be subject to an administrative penalty” for “upon conviction be guilty of a Class A misdemeanor” in (d).

Subchapter 3 — Dead Animals Generally

2-40-301 — 2-40-303. [Repealed.]

Publisher's Notes. This subchapter, concerning dead animals generally, was repealed by Acts 2017, No. 1011, § 53. The subchapter was derived from the following sources:

2-40-301. Acts 1917, No. 173, § 3, p. 947; C. & M. Dig., § 367; Acts 1925, No. 224, § 3; Pope's Dig., § 392; A.S.A. 1947, § 78-417; Acts 2005, No. 1994, § 24.

2-40-302. Acts 1917, No. 173, §§ 1-3, p. 947; C. & M. Dig., §§ 365-367; Acts 1925, No. 224, § 3; Pope's Dig., §§ 390-392; A.S.A. 1947, §§ 78-415 — 78-417.

2-40-303. Acts 1917, No. 173, § 4, p. 947; C. & M. Dig., § 368; Acts 1925, No. 224, § 4; Pope's Dig., § 393; A.S.A. 1947, § 78-418.

Subchapter 4 — Disposal of Fowl Carcasses

Effective Dates. Acts 1985, No. 168, § 6: Oct. 1, 1985.

Acts 1989 (3rd Ex. Sess.), No. 20, § 6: Nov. 6, 1989. Emergency clause provided: “It is hereby found and determined by the General Assembly that the Livestock and Poultry Commission should have authority to regulate the methods and procedures for the disposal of fowl carcasses; that this Act will grant such authority to the Commission; and that this Act should go into effect immediately in order to provide needed flexibility to the law as soon as possible. Therefore, an emergency is hereby declared to exist and this Act being immediately necessary for the preservation of the public peace, health and safety shall be in full force and effect from and after its passage and approval.”

Acts 1993, Nos. 241 and 250, § 7: Feb. 26, 1993. Emergency clause provided: “It is hereby found and determined by the General Assembly that eliminating the use of disposal pits is essential for effectively and efficiently protecting the health and well being of the public. Therefore, an emergency is hereby declared to exist and this act being necessary for the preservation of the public peace, health and safety shall be in full force and effect from and after its passage and approval.”

Acts 2019, No. 910, § 6346(b): July 1, 2019. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that this act revises the duties of certain state entities; that this act establishes new departments of the state; that these revisions impact the expenses and operations of state government; and that the sections of this act other than the two uncodified sections of this act preceding the emergency clause titled ‘Funding and classification of cabinet-level department secretaries’ and ‘Transformation and Efficiencies Act transition team’ should become effective at the beginning of the fiscal year to allow for implementation of the new provisions at the beginning of the fiscal year. Therefore, an emergency is declared to exist, and Sections 1 through 6343 of this act being necessary for the preservation of the public peace, health, and safety shall become effective on July 1, 2019”.

Research References

Ark. L. Rev.

Noble and Looney, The Emerging Legal Framework for Animal Agricultural Waste Management in Arkansas, 47 Ark. L. Rev. 159.

2-40-401. Definitions.

As used in this subchapter, unless the context otherwise requires:

  1. “Approved incineration” means a method of incineration approved by the commission;
  2. “Commission” means the Arkansas Livestock and Poultry Commission created by § 2-33-101;
  3. “Fowl” shall include all domesticated avian species;
  4. “Fowl carcasses” means carcasses of fowl which died as the result of sickness, suffocation, accident, or from any cause other than intentional slaughter; and
  5. “Responsible person” means the person who has the direct responsibility for the day-to-day care of the fowl involved.

History. Acts 1985, No. 168, § 1; A.S.A. 1947, § 78-415.1; Acts 1993, No. 241, § 1; 1993, No. 250, § 1.

2-40-402. Penalty.

A person who violates this subchapter shall be subject to an administrative penalty.

History. Acts 1985, No. 168, § 5; A.S.A. 1977, § 78-415.5; Acts 2017, No. 1011, § 54.

Amendments. The 2017 amendment rewrote the section.

2-40-403. Requirements.

The Arkansas Livestock and Poultry Commission shall, by rule, specify acceptable methods for the disposal of fowl carcasses, including, but not limited to:

  1. Composting of carcasses;
  2. Cremation or incineration;
  3. Extrusion;
  4. On-farm freezing;
  5. Rendering; and
  6. Cooking for swine feed.

History. Acts 1985, No. 168, § 2; A.S.A. 1947, § 78-415.2; Acts 1989 (3rd Ex. Sess.), No. 20, § 1; 1993, No. 241, § 2; 1993, No. 250, § 2; 2019, No. 315, § 29.

Amendments. The 2019 amendment substituted “rule” for “regulation” in the introductory language of the section.

2-40-404. Specifications.

The Arkansas Livestock and Poultry Commission shall, by rule, specify acceptable methods of the disposal of fowl carcasses in the event of a major die-off.

History. Acts 1985, No. 168, § 3; A.S.A. 1947, § 78-415.3; Acts 1989 (3rd Ex. Sess.), No. 20, § 2; 1993, No. 241, § 3; 1993, No. 250, § 3; 2019, No. 315, § 30.

Amendments. The 2019 amendment substituted “rule” for “regulation”.

2-40-405. [Repealed.]

Publisher's Notes. This section, concerning regulations, was repealed by Acts 2017, No. 1011, § 55. The section was derived from Acts 1985, No. 168, § 4; A.S.A. 1947, § 78-415.4.

2-40-406. Division of Environmental Quality — Jurisdiction unimpaired.

This subchapter shall not be interpreted as denying or preempting the regulatory or enforcement jurisdiction of the Division of Environmental Quality.

History. Acts 1989 (3rd Ex. Sess.), No. 20, § 3; 1999, No. 1164, § 1; 2019, No. 910, § 2415.

Amendments. The 2019 amendment substituted “Division of Environmental Quality” for “Arkansas Department of Environmental Quality” in the section heading and the section.

Subchapter 5 — Brucellosis Vaccination

A.C.R.C. Notes. References to “this subchapter” in §§ 2-40-5012-40-507 may not apply to § 2-40-508 which was enacted subsequently.

Effective Dates. Acts 1993, No. 1174, § 27: July 1, 1993. Emergency clause provided: “It is hereby found and determined by the Seventy-Ninth General Assembly, that the Constitution of the State of Arkansas prohibits the appropriation of funds for more than a two (2) year period; that the effectiveness of this Act on July 1, 1993 is essential to the operation of the agency for which the appropriations in this Act are provided, and that in the event of an extension of the Regular Session, the delay in the effective date of this Act beyond July 1, 1993 could work irreparable harm upon the proper administration and provision of essential governmental programs. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after July 1, 1993.”

2-40-501 — 2-40-507. [Repealed.]

Publisher's Notes. These sections, concerning penalty, vaccination required, standards for vaccine, refusal to vaccinate, enforcement, cooperative agreements, and indemnities, were repealed by Acts 2017, No. 1011, §§ 56-62. The sections were derived from the following sources:

2-40-501. Acts 1981, No. 271, § 10; A.S.A. 1947, § 78-470.

2-40-502. Acts 1981, No. 271, §§ 1-3, 11; 1985, No. 150, § 6; 1985, No. 151, § 6; A.S.A. 1947, §§ 78-461 — 78-463; Acts 1995, No. 19, § 1; 1995, No. 142, § 1.

2-40-503. Acts 1981, No. 271, § 7; A.S.A. 1947, § 78-467.

2-40-504. Acts 1981, No. 271, § 4; A.S.A. 1947, § 78-464.

2-40-505. Acts 1981, No. 271, §§ 5, 8, 9; A.S.A. 1947, §§ 78-465, 78-468, 78-469.

2-40-506. Acts 1981, No. 271, § 6; A.S.A. 1947, § 78-466.

2-40-507. Acts 1981, No. 770, § 23; A.S.A. 1947, § 78-461.1.

2-40-508. Legislative intent.

It is the intent of the General Assembly that the Arkansas Livestock and Poultry Commission will continue to vaccinate heifers on the farm and at the sale barns for brucellosis and will carry out all the practices of the commission which have brought the state to its current near brucellosis-free status.

History. Acts 1993, No. 1174, § 19; 2017, No. 1011, § 63.

A.C.R.C. Notes. References to “this chapter” in subchapters 1-12 may not apply to this section which was enacted subsequently.

References to “this subchapter” in §§ 2-40-5012-40-507 may not apply to this section which was enacted subsequently.

Amendments. The 2017 amendment deleted “employees of the” preceding “Arkansas Livestock and Poultry Commission”.

Subchapter 6 — Brucellosis Control Areas

2-40-601 — 2-40-603. [Repealed.]

Publisher's Notes. This subchapter, concerning brucellosis control areas, was repealed by Acts 2017, No. 1011, § 64. The subchapter was derived from the following sources:

2-40-601. Acts 1957, No. 33, § 1; A.S.A. 1947, § 78-433.

2-40-602. Acts 1957, No. 33, § 2; 1959, No. 124, § 1; A.S.A. 1947, § 78-434.

2-40-603. Acts 1957, No. 33, § 3; A.S.A. 1947, § 78-435.

Subchapter 7 — Hog Cholera

2-40-701 — 2-40-708. [Repealed.]

Publisher's Notes. This subchapter, concerning hog cholera virus, was repealed by Acts 2017, No. 1011, § 65. The subchapter was derived from the following sources:

2-40-701. Acts 1957, No. 154, § 1; A.S.A. 1947, § 78-605.

2-40-702. Acts 1957, No. 154, §§ 1, 2; 1963, No. 248, § 8; A.S.A. 1947, §§ 78-448, 78-605, 78-606; Acts 2005, No. 1994, § 25.

2-40-703. Acts 1963, No. 248, § 7; A.S.A. 1947, § 78-447.

2-40-704. Acts 1963, No. 248, § 1; A.S.A. 1947, § 78-441.

2-40-705. Acts 1963, No. 248, § 2; A.S.A. 1947, § 78-442.

2-40-706. Acts 1963, No. 248, § 3; A.S.A. 1947, § 78-443.

2-40-707. Acts 1963, No. 248, § 4; A.S.A. 1947, § 78-444.

2-40-708. Acts 1963, No. 248, §§ 5, 6; A.S.A. 1947, §§ 78-445, 78-446.

Subchapter 8 — Equine Infectious Anemia

Publisher's Notes. An earlier version of former subchapter 8, concerning equine infectious anemia, was reenacted by Acts 1987, No. 1007. However, the former subchapter, as reenacted, is deemed to be superseded by this subchapter. The former subchapter was derived from the following sources:

2-40-801. Acts 1975 (Extended Sess., 1976), No. 1212, § 1; A.S.A. 1947, § 78-455; Acts 1987, No. 1007, § 1.

2-40-802. Acts 1975 (Extended Sess., 1976), No. 1212, § 6; A.S.A. 1947, § 78-460; Acts 1987, No. 1007, § 6.

2-40-803. Acts 1975 (Extended Sess., 1976), No. 1212, § 2; A.S.A. 1947, § 78-456; Acts 1987, No. 1007, § 2.

2-40-804. Acts 1975 (Extended Sess., 1976), No. 1212, § 4; A.S.A. 1947, § 78-458; Acts 1987, No. 1007, § 4.

2-40-805. Acts 1975 (Extended Sess., 1976), No. 1212, §§ 3, 5; A.S.A. 1947, §§ 78-457, 78-459; Acts 1987, No. 1007, §§ 3, 5.

Former subchapter 8, concerning equine infectious anemia, was repealed by Acts 1997, No. 1306, § 31. The subchapter was derived from the following sources:

2-40-801. Acts 1987, No. 374, § 1.

2-40-802. Acts 1987, No. 374, § 4; 1987, No. 1034, § 2; 1991, No. 1155, § 1.

2-40-803. Acts 1987, No. 374, § 2; 1987, No. 1034, § 1; 1991, No. 1155, § 2.

2-40-804. Acts 1987, No. 374, § 3.

2-40-805. Acts 1991, No. 1155, § 3.

Effective Dates. Acts 1999, No. 10, § 7: Feb. 2, 1999. Emergency clause provided: “It is hereby determined by the General Assembly that horse racing and activities related thereto in Arkansas have a significant favorable impact on the economy of the entire state and the welfare of our citizens and residents, and it is imperative that the provisions of this act be effective to the fullest extent possible with respect to the upcoming racing season scheduled to begin January 29, 1999 in order to maintain and improve Arkansas' premier and traditional position in horse racing, and in order to accomplish these goals (essential to the welfare of the state and its citizens and residents) the amendments and provisions set forth in this act must be effective immediately. Therefore, an emergency is hereby declared to exist, and this act, being immediately necessary for the preservation of the public peace, health and safety, shall take effect, and be in full force, immediately from and after its approval by the Governor. If the bill is neither approved nor vetoed by the Governor, it shall become effective on the expiration of the period of time during which the Governor may veto the bill. If the bill is vetoed by the Governor and the veto is overridden, it shall become effective on the date the last house overrides the veto.”

Case Notes

Constitutionality.

This subchapter is a valid exercise of police power. Winters v. State, 301 Ark. 127, 782 S.W.2d 566 (1990) (decision under prior law).

2-40-801. Definitions.

As used in this subchapter:

  1. “Accredited veterinarian” means a veterinarian licensed by the Veterinary Medical Examining Board and approved by the United States Animal and Plant Health Inspection Service to perform functions required for state or cooperative state and federal animal disease control and eradication programs;
  2. “Adjacent herds” means a group or groups of equidae sharing common pasture or having other direct contact with an affected herd or reactor animal and herds containing previous purchases from or exchanges with an affected herd. Herds separated by a distance of less than four hundred forty yards (440 yds.) are considered adjacent herds;
  3. “Affected herd” means a herd of equidae that contains or has contained one or more animals infected with equine infectious anemia and that has not passed the required tests necessary for release from quarantine;
  4. “Approved laboratory” means a laboratory which is approved by the United States Department of Agriculture and the State Veterinarian to conduct an official test for equine infectious anemia;
  5. “Approved market” means a stockyard, livestock market, or other premises, approved by the commission where equidae are congregated for sale;
  6. “Authorized agent” means a person who has been authorized by the Arkansas Livestock and Poultry Commission to act on its behalf in making investigations and inspections and performing other services or acts which have been defined by this subchapter;
  7. “Certificate of veterinary inspection” means an official document issued by an accredited veterinarian at the point of origin of a shipment of equidae. It shall include:
    1. The name, breed, registration number if any, implanted electronic identification transponder number if any, tattoo if any, brand if any, sex, age, color, and markings sufficient to positively identify each equidae listed on the form;
    2. A record of a physical examination of each animal verifying freedom from visible evidence of any contagious, infectious, or communicable diseases and the results of an official test for equine infectious anemia, including the name of the approved laboratory, the case number, and the date of the most recent test results; and
    3. The equidae temperature reading;
  8. “Certified equine infectious anemia verifier” or “certified EIA verifier” means any certificate holder having completed the prescribed training course co-sponsored by the Arkansas Livestock and Poultry Commission, the University of Arkansas Cooperative Extension Service, and the Arkansas Horse Council, Inc.;
  9. “Commission” means the Arkansas Livestock and Poultry Commission;
  10. “Concentration point” means the gathering of one (1) or more equidae, for any purpose, at a single location, facility, or area whereby equidae will be within four hundred forty yards (440 yds.) from each other;
  11. “Designated epidemiologist” means an experienced licensed epidemiologist who has been designated by the State Veterinarian to perform those functions necessary for the classification of equidae, based on the evaluation of test results and consideration of the animal and herd history as well as other epidemiologic factors including, but not limited to, weather conditions, number of vectors in the area, and concentration of animals;
  12. “Epidemiologist investigation” means the process used by the designated epidemiologist to classify equidae;
  13. “Equidae” means a family of perissodactyl ungulate mammals containing a single genus equus, which includes horses, asses, jacks, jennies, hennies, mules, donkeys, burros, ponies, and zebras;
  14. “Equine activity” means:
    1. Equine shows, fairs, competitions, performances, or parades that involve any or all breeds of equines and any of the equine disciplines, including, but not limited to, dressage, hunter and jumper horse shows, grand prix jumping, three-day events, combined training, rodeos, pulling, cutting, polo, steeplechasing, endurance trail riding and western games, and hunting;
    2. Equine training and teaching activities;
    3. Boarding equines;
    4. Riding, inspecting, or evaluating an equine belonging to another, whether or not the owner has received some monetary consideration or other thing of value for the use of the equine or is permitting a prospective purchaser of equine to ride, inspect, or evaluate the equine; and
    5. Rides, hunts, or other equine activities of any type, no matter how informal or impromptu;
  15. “Equine infectious anemia”, “EIA”, or “EIAV” means the communicable infectious disease which affects equidae and is caused by the virus of equine infectious anemia;
  16. “Exposed equidae” means equidae that have been in contact with, associated with, adjacent to, or within four hundred forty yards (440 yds.) of animals known to be equine infectious anemia reactors;
  17. “Herd” means one (1) or more equidae of single or multiple ownership maintained on common ground or one (1) or more equidae under single or multiple ownership that are geographically separated but that can have an interchange or movement without regard to health status;
    1. “Livestock dealer” means any person engaged in the business of buying or selling livestock including equidae in commerce on a commission basis, or any person registered and bonded under the provisions of the federal Packers and Stockyards Act, as amended, who buys or sells equidae.
    2. The term “livestock dealer” does not include a farmer or rancher who buys or sells livestock or equidae in the ordinary course of his or her farming or ranching operation;
  18. “Negative current equine infectious anemia test” or “negative current EIA test” means a negative response to an official equine infectious anemia test conducted by an approved laboratory within the past twelve (12) months;
  19. “Neighboring herd” means one (1) or more equidae residing within four hundred forty yards (440 yds.) of another premise containing equidae and which other premise is owned, leased, or caretaken by different individuals, partnerships, or corporations. Temporary additions of equidae, regardless of length of time, are considered part of neighboring herds;
  20. “Official equine infectious anemia test” or “official EIA test” means the agar gel immunodiffusion (AGID) test, also known as the “Coggins” test, the competitive enzyme-linked immunosorbent assay (CELISA) test, the synthetic antigen enzyme linked immunosorbent assay (SA-ELISA) test and any other United States Department of Agriculture licensed tests approved by the commission;
  21. “Participant” means any person, whether amateur or professional, who engages in an equine activity, whether or not a fee is paid to participate in the equine activity;
    1. “Permit” or “permit for movement” means an official document issued by the commission, a representative of a Veterinary Services Endorsement Office, or an accredited veterinarian authorizing the movement of a reactor or exposed equidae to a quarantined holding facility, an approved slaughter facility, or approved quarantined premise.
    2. The permit shall list the name, breed, registration number if any, tattoo if any, implanted electronic identification transponder number if any, brand if any, sex, age, color, and markings sufficient to positively identify each equidae listed on the form. The owner's name and address, origin and destination locations, and purpose of the movement shall also be recorded;
  22. “Quarantine” means a written notice or order issued by the commission showing the boundaries of the area or premise affected, the equidae restricted, and the restrictions, if any;
  23. “Quarantined holding facility” means a quarantined premise approved by the commission to handle reactors or exposed equidae;
  24. “Reactor” means any equidae which reacts positively to an official equine infectious anemia test;
  25. “Regulatory veterinarian” means a veterinarian employed by or acting as an agent for the commission; and
  26. “Research facility” means any facility that meets or exceeds the standards and requirements set forth by United States Animal and Plant Health Inspection Services and the commission for equine infectious anemia research.

History. Acts 1997, No. 1306, § 1; 2001, No. 540, § 1.

U.S. Code. The federal Packers and Stockyards Act referred to in this section is probably a reference to the Packers and Stockyards Act, 1921, codified as 7 U.S.C. § 181 et seq.

Research References

U. Ark. Little Rock L. Rev.

Survey of Legislation, 2001 Arkansas General Assembly, Agricultural Law, 24 U. Ark. Little Rock L. Rev. 403.

2-40-802. Penalties and fines.

Any person, firm, or corporation who violates any provision of this subchapter shall be subject to an administrative penalty.

History. Acts 1997, No. 1306, § 24; 2001, No. 540, § 2; 2017, No. 1011, § 66.

Amendments. The 2017 amendment substituted “be subject to an administrative penalty” for “upon conviction, be guilty of a Class A misdemeanor and shall be ordered by the court to comply within seven (7) calendar days with all provisions of this subchapter and all regulations promulgated under this subchapter, or be guilty of contempt of court”.

Research References

U. Ark. Little Rock L. Rev.

Survey of Legislation, 2001 Arkansas General Assembly, Agricultural Law, 24 U. Ark. Little Rock L. Rev. 403.

2-40-803. [Repealed.]

Publisher's Notes. This section, concerning rules, regulations, and orders, was repealed by Acts 2017, No. 1011, § 67. The section was derived from Acts 1997, No. 1306, § 25; 2007, No. 827, § 8.

2-40-804. Testing requirements for domiciled equidae.

    1. All equidae domiciled within the State of Arkansas shall be subjected to an official equine infectious anemia test every twelve (12) months.
    2. An equidae is domiciled within the state when the equidae has been pastured, stabled, housed, or kept in any fashion in the state more than thirty (30) consecutive or unconsecutive days.
    3. Written proof of a negative current official equine infectious anemia test shall be made available in the form of negative results from an approved laboratory upon request made by an authorized representative of the Arkansas Livestock and Poultry Commission or the owner, lessee, or caretaker of a neighboring herd.
    1. Owners of horses domiciled within the state shall be responsible for maintaining a negative current official equine infectious anemia test on all horses that they own.
    2. After January 1, 1998, failure to furnish proof of negative current official equine infectious anemia test to an authorized agent of the commission may result in quarantine and penalties prescribed by § 2-40-826 and § 2-40-827 [repealed].
    3. An owner of a neighboring herd, whether of single or multiple ownership, shall have the right to know if any equine within four hundred forty yards (440 yds.) are untested, exposed, or reactor animals.
    1. When any equidae is examined or treated by an accredited veterinarian, the owner or caretaker must present to the veterinarian written proof of a negative current official equine infectious anemia test.
    2. If no official equine infectious anemia test results are available, the accredited veterinarian may draw an official sample for equine infectious anemia as part of the examination or treatment, at the owner's expense.

History. Acts 1997, No. 1306, § 2.

2-40-805. Equidae identification requirements.

All equidae domiciled within Arkansas and over the age of six (6) months or weaned from a mare shall be positively identified on the official equine infectious anemia test form by an accredited veterinarian or an agent of the Arkansas Livestock and Poultry Commission by means of distinctive markings, color patterns, previous brand, previous tattoo, previously implanted electronic transponder number, permanent scars, other blemishes, cowlicks, whorls, lip tattoo, hot brand or freeze brand before an equine infectious anemia test.

History. Acts 1997, No. 1306, § 3.

2-40-806. Authority to require test.

Any equidae which have been within four hundred forty yards (440 yds.) of a reactor shall be subject to testing by the Arkansas Livestock and Poultry Commission, the State Veterinarian, or their agents if the exposure to the reactor occurred no more than thirty (30) days before the testing of the reactor.

History. Acts 1997, No. 1306, § 4.

2-40-807. Personnel authorized to collect blood samples.

All samples collected from equidae for equine infectious anemia testing shall be collected by an accredited veterinarian, the State Veterinarian, or other Arkansas Livestock and Poultry Commission-authorized personnel.

History. Acts 1997, No. 1306, § 5.

2-40-808. Submission of sample and test charts.

  1. All blood samples submitted for official equine infectious anemia tests must be accompanied by a properly completed VS Form 10-11 (Equine Infectious Anemia Laboratory Test Form) or other form prescribed by the Arkansas Livestock and Poultry Commission.
  2. Proof of a negative equine infectious anemia test may be demonstrated through presentation of:
    1. The original test record document;
    2. An official electronic copy, as defined by the commission; and
    3. Other forms as may be prescribed by the commission.

History. Acts 1997, No. 1306, § 6; 2017, No. 716, § 1; 2017, No. 1011, § 68.

Amendments. The 2017 amendment by No. 716 rewrote (b).

The 2017 amendment by No. 1011 removed the (a) designation and deleted former (b).

2-40-809. Requirements for Arkansas-approved equine infectious anemia testing laboratories.

No person, firm, or corporation shall initiate operation of an equine infectious anemia testing laboratory without first obtaining approval from the Arkansas Livestock and Poultry Commission.

History. Acts 1997, No. 1306, § 7.

2-40-810. Classification of equidae tested.

  1. All equidae tested shall be classified as either negative or reactor.
  2. Reactors may be retested at the owner's expense provided the owner or the owner's agent initiates a retest request to the State Veterinarian not more than five (5) working days after the receipt of the test results by the owner or the owner's agent.
    1. All retest samples shall be collected by the same accredited veterinarian who conducted the original test or an alternate accredited veterinarian appointed by the State Veterinarian, and submitted to an approved laboratory within twenty (20) days after the receipt by the owner or the owner's agent of the first positive test.
    2. The veterinarian collecting the retest sample shall be provided documentation that the animal being retested is the one shown positive on the initial test.
    1. All reactors shall be held in isolation, under quarantine, while awaiting the retest results.
    2. All other equidae on the premises shall be held under quarantine while awaiting the retest results.
  3. Retest results shall be the official results unless there are conflicting tests.
  4. If there are conflicting tests, a third test shall be conducted in the presence of an authorized agent of the commission or by an authorized agent of the commission.
  5. The sample will be sent to the commission's diagnostic laboratory. Costs will be borne by the state unless an accredited veterinarian draws the sample, which will be paid for by the owner.
  6. Results of two (2) out of three (3) tests will determine classification.

History. Acts 1997, No. 1306, § 8.

2-40-811. Reporting of test results.

  1. It is the responsibility of the approved laboratory to notify the State Veterinarian's office and the individual submitting the sample for testing within twenty-four (24) hours after classifying an equidae as a reactor.
  2. It is the responsibility of the individual collecting the test sample to notify the reactor's owner or the owner's agent of the results of all positive tests within forty-eight (48) hours after classification and to notify the animal's owner or the owner's agent of the quarantine resulting from positive test results.

History. Acts 1997, No. 1306, § 9.

2-40-812. Quarantines.

    1. All reactors shall be quarantined by an authorized agent of the commission to the premises of origin or other premises designated by the owner and approved by the Arkansas Livestock and Poultry Commission.
    2. The quarantine shall restrict the reactors, all other equidae on the premises, and all equidae epidemiologically determined by the commission to have been exposed to a reactor.
    3. All equidae on affected premises shall be isolated at least four hundred forty yards (440 yds.) away from all equidae on adjacent premises and at least four hundred forty yards (440 yds.) from any public road.
    4. It is the responsibility of the owner of reactors to maintain those animals in isolation at least four hundred forty yards (440 yds.) away from any public road and all other equidae.
    5. The quarantine may be released by an authorized agent of the commission after all quarantined equidae in the affected herd test negative to an official equine infectious anemia test not less than sixty (60) days nor more than eighty (80) days following the identification and removal of the last reactor, or as determined by the designated epidemiologist.
  1. No equidae held under quarantine may be moved or released until a written permit or quarantine release, signed by an authorized agent, has been executed.
  2. All adjacent herds, neighboring herds, and other exposed equine, so deemed by epidemiological investigation, will be quarantined by written report by an authorized agent.
  3. A deviation in testing requirements for a quarantine is acceptable when made by the designated epidemiologist.

History. Acts 1997, No. 1306, § 10.

2-40-813. Quarantining reactors.

      1. With the exception of the equine stabled at a racetrack regulated by the Arkansas Racing Commission, all reactors shall be quarantined to the owner's premises or an approved quarantine holding facility and shall be destroyed or sold for immediate slaughter or permitted to a research facility within twenty (20) days after the date of the last official positive equine infectious anemia test.
      2. If the equidae is destroyed or dies of natural causes within the twenty-day period, verification of the destruction or death by written and signed statement from an accredited veterinarian or an authorized agent of the commission must be furnished to the office of the State Veterinarian.
      3. If sold for slaughter, the equidae may be moved from the owner's premises to an approved market or to an approved slaughter facility, provided that the equidae are accompanied by a permit for movement.
    1. The owner or trainer of reactors stabled at a racetrack regulated by the commission shall be notified immediately by the testing veterinarian, racetrack officials, or by commission personnel and the reactors shall be removed from the racetrack premises immediately.
      1. Upon request by the owner, any female reactor that is at least two hundred seventy (270) days pregnant or has a nursing foal less than four (4) months of age, as verified by an accredited veterinarian or an agent of the commission, at her side may be quarantined to the owner's premises and shall be kept at least four hundred forty yards (440 yds.) away from any other equidae.
      2. The reactor shall be identified with a “71A” brand, or other brand prescribed by the commission, at least two inches (2") in height on the left shoulder or left side of the neck.
      3. The female reactor may remain in quarantine until her foal dies or reaches an age of four (4) months, at which time the reactor shall either be destroyed, shipped by permit to an approved quarantined holding facility, or sold for immediate slaughter within twenty (20) days.
      4. If the equidae is destroyed or dies from natural causes, verification of destruction by a written and signed statement must be furnished to the office of the State Veterinarian by an accredited veterinarian or an agent of the commission.
      5. If sold for slaughter, the reactor may be moved from the owner's premises to an approved market or to an approved slaughter facility provided that the reactor is accompanied by a permit for movement.
    1. Any foal kept in quarantine with its equine infectious anemia positive dam shall be officially tested for equine infectious anemia at the owner's expense not less than sixty (60) days nor more than eighty (80) days after it is weaned. Foals nursing positive mares must be weaned at four (4) months of age.
      1. Any equidae which tested positive to the official equine infectious anemia test before August 1, 1997, shall be quarantined to the owner's premises and kept at least four hundred forty yards (440 yds.) away from any other equidae or public road.
      2. The reactor shall be identified with a “71A” brand, or other brand prescribed by the commission, at least two (2) inches in height on the left shoulder or left side of neck.
      3. If the reactor is sold, it must be sold for slaughter and a VS Form 1-27 or permit must be issued by commission personnel to move the reactor from the owner's premises to slaughter.
      4. Ownership of reactors may not be changed except for slaughter.
      5. If the reactor is destroyed or dies, verification of destruction or death by written and signed statement must be furnished to the office of the State Veterinarian, certified by an accredited veterinarian, or an agent of the commission.
    2. Any reactor found in violation of quarantine shall be ordered sold for slaughter or destroyed within twenty (20) days, and the owner or caretaker will be subject to prosecution for noncompliance.

History. Acts 1997, No. 1306, § 11.

Case Notes

Permits.

Defendant lacked standing to challenge the vagueness of subdivision (a)(1)(A) of this section, requiring owners to permit their horses to a research facility if the animal tested positive for equine infectious anemia, where defendant never attempted to “permit” her infected horse. Ross v. State, 347 Ark. 334, 64 S.W.3d 272 (2002).

2-40-814. Positive reactors at official racetracks.

  1. All equines stabled at a racetrack regulated by the Arkansas Racing Commission which test positive to the official equine infectious anemia test shall be immediately removed from the racetrack, shall be quarantined to the premises to which they are moved, and shall be destroyed, branded by authorized commission personnel, sold for immediate slaughter, or by permit shipped to an approved quarantined holding facility within twenty (20) days after the date of the last official positive equine infectious anemia test.
  2. If the equine is destroyed or dies of natural causes within the twenty (20) days, a written and signed statement by an accredited veterinarian or an agent of the commission must be furnished to the office of the State Veterinarian.
  3. If the equine is sold for slaughter, the equine may be moved from the owner's premises to an approved market or to an approved slaughter facility provided that the equine is accompanied by a permit for movement.

History. Acts 1997, No. 1306, § 12.

2-40-815. Testing requirements in affected herds.

  1. All equidae determined to have been on the same premises as a reactor at the time the reactor was bled shall be tested by an accredited veterinarian or an authorized agent of the Arkansas Livestock and Poultry Commission at the owner's expense sixty to eighty (60-80) days after the reactor's last positive test result.
  2. A foal less than four (4) months of age nursing a negative tested dam is exempt from testing.

History. Acts 1997, No. 1306, § 13.

2-40-816. Movement of reactors and exposed animals.

  1. All reactors and exposed equidae must be accompanied by a permit for movement when moved from their quarantined premises.
  2. All reactors must be branded before moving interstate.
  3. Movement of a reactor and exposed equidae must be direct to an approved slaughter facility or a quarantined holding facility for movement to an approved slaughter facility.
    1. Any other move such as a change in location of a reactor or exposed equidae to an alternate quarantined premise must be approved in advance following an epidemiological investigation by the State Veterinarian or other designated Arkansas Livestock and Poultry Commission personnel.
    2. The movement must also be accompanied by a permit for movement.
  4. If a change in destination becomes necessary, a new permit must be issued by commission-authorized personnel or the regulatory veterinarian.

History. Acts 1997, No. 1306, § 14.

2-40-817. Requirements for quarantined holding facilities.

    1. A person desiring to operate a quarantined holding facility must file an application for approval of the facility on forms provided by the Arkansas Livestock and Poultry Commission.
    2. The facility must have an area where equidae testing positive to an official equine infectious anemia test and exposed equidae are kept, and where the equidae are isolated and confined at least four hundred forty yards (440 yds.) from all other equidae at all times.
    3. The facility must be approved by the commission under an inspection of the premises before the issuance of the license.
  1. Failure to maintain the reactors and exposed equidae in confinement and isolation at least four hundred forty yards (440 yds.) from all other equidae at all times is a violation of this subchapter.
    1. All equidae held in a quarantined holding facility must be shipped directly to an approved slaughter facility without diversion.
    2. An animal moved from a quarantined holding facility may not go through any livestock auction facility before shipment to slaughter.
    3. All movements from a quarantined holding facility must be accompanied by a permit for movement.
  2. All equidae entering or within an approved quarantine holding facility shall be branded or show evidence of an “S” brand on the top of the left hip or a “71A” brand or other brand prescribed by the commission on the left shoulder or neck, not less than two inches (2") in height.
  3. No equidae may be held over twenty (20) days.
  4. A quarantine pen must be clearly identified by a sign or paint using the word “Quarantined” on all sides. Letters of the sign must be a minimum of one foot (1') in height.
  5. Failure to comply with this subchapter shall be cause for cancellation of approval by the commission.

History. Acts 1997, No. 1306, § 15.

2-40-818. Fictitious names and erroneous information.

  1. Test charts, permits, and other official forms must be completed in the name of the owner or the person responsible for the equidae.
  2. No livestock auction facility operator or veterinarian may be held responsible for recording erroneous information provided by an owner, buyer, or seller.
  3. The individual providing the erroneous or fictitious information shall be deemed to have violated this subchapter.

History. Acts 1997, No. 1306, § 16.

2-40-819. Testing requirements for change of ownership.

      1. All equidae which are sold, bartered, traded, given free of charge, or offered for sale, or any horses otherwise exchanged for any reason within Arkansas except at approved markets must be accompanied by a record of a negative equine infectious anemia test conducted at an approved laboratory within the previous six (6) months.
      2. Proof of a negative equine infectious anemia test may be demonstrated through presentation of:
        1. The original test record document;
        2. An official electronic copy, as defined by the Arkansas Livestock and Poultry Commission; and
        3. Other forms as may be prescribed by the Arkansas Livestock and Poultry Commission.
      3. A foal less than six (6) months of age is exempt from the testing requirements if the foal is accompanied by, nursing, and included in change of ownership with a negative tested mare.
      4. A foal sold separately is required to have a negative current official equine infectious anemia test.
    1. On all private sales, trades, or barters, that is, any sale other than through an approved market, both the buyer and seller are equally and individually responsible for meeting the equine infectious anemia testing requirements before the sale or change of ownership.
  1. Notwithstanding the provisions of subsection (a) of this section, with respect to a horse claimed in a claiming race run at a licensed racetrack regulated by the Arkansas Racing Commission, the Arkansas Livestock and Poultry Commission may require:
    1. The negative equine infectious anemia test to have been conducted at an approved laboratory within the previous twelve (12) months, rather than the previous six (6) months;
    2. Any negative equine infectious anemia test required to be conducted within the last six (6) months to be conducted after the race and after title and risk of loss have passed to the buyer; or
    3. That the requirements of both subdivisions (b)(1) and (2) of this section be met.

History. Acts 1997, No. 1306, § 17; 1999, No. 10, § 3; 2007, No. 827, § 9; 2017, No. 716, § 2; 2017, No. 1011, § 69.

Amendments. The 2007 amendment added (b)(3), and made related and stylistic changes.

The 2017 amendment by No. 716 rewrote (a)(1)(B).

The 2017 amendment by No. 1011 deleted (a)(1)(B) and redesignated the remaining subdivisions accordingly.

2-40-820. Movement of equidae through approved market.

  1. All equidae offered for sale or sold at approved markets must:
    1. Be accompanied by written proof of a negative equine infectious anemia test conducted within the last six (6) months;
    2. Have a blood sample collected by an accredited veterinarian and test negative to an official equine infectious anemia test performed by an approved laboratory before the animal leaves the market;
    3. Have a blood sample collected by an accredited veterinarian or an authorized agent of the Arkansas Livestock and Poultry Commission at the market and be quarantined to the market until negative results are received from an approved laboratory;
    4. Be “S” branded and consigned to slaughter before receiving test results; or
    5. Be allowed to return to their premises of origin before unloading and before consignment and be quarantined to the premises of origin until tested negative. The equidae must be tested within thirty (30) days.
  2. Proof of a negative equine infectious anemia test may be demonstrated through presentation of:
    1. The original test record document;
    2. An official electronic copy, as defined by the commission; and
    3. Other forms as may be prescribed by the commission.
  3. A foal less than six (6) months of age sold with and nursing a negative-tested mare is exempt from the testing requirements of this subchapter.
    1. A known reactor or known exposed equidae shall not be consigned for sale at an approved market unless permitted by authorized commission personnel.
    2. An animal which is found to be a reactor or exposed through testing conducted at an approved market must be maintained in a quarantine pen and isolated from all other equidae in the sale facility.
      1. The quarantine pen must be clearly identified by sign or paint using the word “Quarantined” on all sides.
      2. Letters must be one foot (1') high.
  4. It is the market owner's responsibility to make sure that all equines sold meet these requirements.

History. Acts 1997, No. 1306, § 18; 2017, No. 716, § 3; 2017, No. 1011, § 70.

Amendments. The 2017 amendment by No. 716 rewrote (b).

The 2017 amendment by No. 1011 deleted “or an authorized agent of the Arkansas Livestock and Poultry Commission at the Market” following “veterinarian” in (a)(2); and deleted former (b) and redesignated the remaining subsections accordingly.

2-40-821. Requirements of equidae participating in equine activities.

  1. All equidae moving within the state to equidae exhibitions, including, but not limited to, fairs, livestock shows, breed association shows, rodeos, trail rides, parades, team pennings, team ropings, racetracks, or other equidae concentration points shall be accompanied by a record of a negative current official equine infectious anemia test within the past twelve (12) months.
  2. Proof of a negative equine infectious anemia test may be demonstrated through presentation of:
    1. The original test record document;
    2. An official electronic copy, as defined by the Arkansas Livestock and Poultry Commission; and
    3. Other forms as may be prescribed by the commission.
  3. Any individual, club, organization, or association conducting an equine activity shall arrange for a certified equine infectious anemia verifier to be present at the event to verify that each of the equidae is accompanied by a record of a negative current official equine infectious anemia test if:
    1. The event charges a fee of any kind, including an entry fee, a gate fee, a membership fee, a registration fee, a user fee, a camping fee, or a grounds fee;
    2. The event provides prize money, trophies, plaques, ribbons, points, or awards of any kind, including jackpot and benefits; or
    3. The event causes a concentration of more than fifty (50) equidae.
  4. Any show or event within the state may require any additional tests or additional requirements deemed necessary.

History. Acts 1997, No. 1306, § 19; 2001, No. 540, § 3; 2017, No. 716, § 4; 2017, No. 1011, § 71.

Amendments. The 2017 amendment by No. 716 rewrote (b).

The 2017 amendment by No. 1011 repealed (b).

Research References

U. Ark. Little Rock L. Rev.

Survey of Legislation, 2001 Arkansas General Assembly, Agricultural Law, 24 U. Ark. Little Rock L. Rev. 403.

2-40-822. General requirements for equidae entering Arkansas.

  1. All equidae entering Arkansas must be accompanied by a record of a negative current official equine infectious anemia test.
  2. All equidae must also be accompanied by a certificate of veterinary inspection, listing information from a record of a negative official equine infectious anemia test, the name and address of the consignor and consignee, the number of animals in the shipment, and a description which accurately identifies each animal.
  3. A foal under six (6) months old accompanied by a negative dam does not have to be tested for equine infectious anemia.

History. Acts 1997, No. 1306, § 20.

2-40-823. Requirements of equidae moving within the state.

All equidae moving within the state for any reason shall be accompanied by a negative current official equine infectious anemia test.

History. Acts 1997, No. 1306, § 21.

2-40-824. Entry requirements to a veterinarian's clinic for care or treatment.

  1. Equidae may enter Arkansas when consigned directly to a veterinary hospital or clinic for treatment or for usual veterinary procedures when accompanied by an owner or shipper permit.
  2. Following release by the veterinarian, equidae must be returned immediately to the state of origin by the most direct route or meet testing requirements for additional movements.

History. Acts 1997, No. 1306, § 22.

2-40-825. Entry requirements to an approved slaughter facility.

  1. All equidae consigned to an approved slaughter facility must be properly and individually identified and accompanied by a waybill, bill of lading, permit, or certificate of veterinary inspection.
  2. A known reactor must be branded, and a known exposed animal must be properly identified and accompanied by a permit.

History. Acts 1997, No. 1306, § 23.

2-40-826. Equine infectious anemia services.

  1. In order to fund or partially fund the Equine Infectious Anemia Control and Eradication Program, the Arkansas Livestock and Poultry Commission may, by appropriately adopted administrative rules, design and maintain a fee structure for the purpose of defraying the cost of services performed.
  2. The fees collected shall be deposited into the State Treasury as special revenues and shall be credited to the Livestock and Poultry Equine Infectious Anemia Control Fund created on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State.

History. Acts 1997, No. 1306, § 26.

2-40-827. [Repealed.]

Publisher's Notes. This section, concerning the expiration of this subchapter, was repealed by Acts 1999, No. 759, § 1. The section was derived from Acts 1997, No. 1306, § 27.

2-40-828. [Repealed.]

Publisher's Notes. This section, concerning reports of violations, was repealed by Acts 2017, No. 1011, § 72. The section was derived from Acts 1999, No. 759, § 2.

2-40-829. Research facility certification required.

Any research facility in this state which contains equidae infected with equine infectious anemia or any reactor equidae shall be certified by the Arkansas Livestock and Poultry Commission and shall be so maintained as to prevent the infection of any other equidae, whether at or outside the research facility.

History. Acts 2001, No. 540, § 4.

Research References

U. Ark. Little Rock L. Rev.

Survey of Legislation, 2001 Arkansas General Assembly, Agricultural Law, 24 U. Ark. Little Rock L. Rev. 403.

Subchapter 9 — Tick Control Program

2-40-901 — 2-40-906. [Repealed.]

Publisher's Notes. This subchapter, concerning Tick Control Program, was repealed by Acts 2017, No. 1011, § 73. The subchapter was derived from the following sources:

2-40-901. Acts 1973, No. 306, § 1; A.S.A. 1947, § 78-452.

2-40-902. Acts 1973, No. 306, § 1; A.S.A. 1947, § 78-452.

2-40-903. Acts 1973, No. 306, §§ 2, 3; A.S.A. 1947, §§ 78-453, 78-454.

2-40-904. Acts 1951, No. 396, § 1; A.S.A. 1947, § 78-419.

2-40-905. Acts 1951, No. 396, § 2; A.S.A. 1947, § 78-420.

2-40-906. Acts 1951, No. 396, §§ 2, 3; A.S.A. 1947, §§ 78-420, 78-421.

Subchapter 10 — Cattle Quarantine Lines

2-40-1001 — 2-40-1006. [Repealed.]

Publisher's Notes. This subchapter, concerning cattle quarantine lines, was repealed by Acts 2017, No. 1011, § 74. The subchapter was derived from the following sources:

2-40-1001. Acts 1925, No. 95, § 1; Pope's Dig., § 383; A.S.A. 1947, § 78-507; Acts 2005, No. 1994, § 404.

2-40-1002. Acts 1895, No. 120, §§ 1-4, p. 176; C. & M. Dig., §§ 384-387; Pope's Dig., §§ 408-411; A.S.A. 1947, §§ 78-501 — 78-504; Acts 2005, No. 1994, § 26.

2-40-1003. Acts 1899, No. 45, §§ 1, 2, p. 71; 1901, No. 13, § 1, p. 26; 1901, No. 59, § 1, p. 106; 1907, No. 104, § 1, p. 266; 1907, No. 409, §§ 10, 15, p. 1043; 1909, No. 255, § 1, p. 762; C. & M. Dig., §§ 357, 362, 378, 379; Pope's Dig., §§ 382, 387, 402, 403; A.S.A. 1947, §§ 78-408, 78-505, 78-506, 78-510.

2-40-1004. Acts 1899, No. 45, § 3, p. 71; 1907, No. 409, § 11, p. 1043; C. & M. Dig., §§ 358, 380; Pope's Dig., §§ 383, 404; A.S.A. 1947, §§ 78-508, 78-509; Acts 2005, No. 1994, § 27.

2-40-1005. Acts 1899, No. 45, §§ 4-6, p. 71; C. & M. Dig., §§ 381-383; Pope's Dig., §§ 405-407; A.S.A. 1947, §§ 78-514 — 78-516.

2-40-1006. Acts 1907, No. 409, §§ 12-14, p. 1043; C. & M. Dig., §§ 359-361; Pope's Dig., §§ 384-386; A.S.A. 1947, §§ 78-511 — 78-513.

Subchapter 11 — Rabies

2-40-1101. [Repealed.]

Publisher's Notes. This section, concerning entire county as infested area, was repealed by Acts 2017, No. 1011, § 75. The section was derived from Acts 1961, No. 196, § 1; A.S.A. 1947, § 78-436.

Subchapter 12 — Pseudorabies Control and Eradication Program

Effective Dates. Acts 1991, No. 1105, § 31: July 1, 1991. Emergency clause provided: “It is hereby found and determined by the Seventy-Eighth General Assembly, that the Constitution of the State of Arkansas prohibits the appropriation of funds for more than a two (2) year period; that the effectiveness of this Act on July 1, 1991 is essential to the operation of the agency for which the appropriations in this Act are provided, and that in the event of an extension of the Regular Session, the delay in the effective date of this Act beyond July 1, 1991 could work irreparable harm upon the proper administration and provision of essential governmental programs. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after July 1, 1991.”

Acts 2019, No. 910, § 6346(b): July 1, 2019. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that this act revises the duties of certain state entities; that this act establishes new departments of the state; that these revisions impact the expenses and operations of state government; and that the sections of this act other than the two uncodified sections of this act preceding the emergency clause titled ‘Funding and classification of cabinet-level department secretaries’ and ‘Transformation and Efficiencies Act transition team’ should become effective at the beginning of the fiscal year to allow for implementation of the new provisions at the beginning of the fiscal year. Therefore, an emergency is declared to exist, and Sections 1 through 6343 of this act being necessary for the preservation of the public peace, health, and safety shall become effective on July 1, 2019”.

2-40-1201. Fees — Disposition of funds.

  1. In order to fund or partially fund the pseudorabies control and eradication program there is hereby levied a fee of one dollar ($1.00) per head on all spent sows and boars sold at livestock markets.
    1. Each livestock market operator shall collect fees and remit monthly to the Secretary of the Department of Finance and Administration.
    2. The secretary may promulgate such rules as the secretary deems necessary to implement the collection of the fee.
  2. After deducting three percent (3%) for credit to the Constitutional Officers Fund and the State Central Services Fund, the remainder of funds so remitted to the secretary shall be deposited into the State Treasury as special revenues and credited to the Livestock and Poultry Commission Swine Testing Fund.
  3. Before the close of each fiscal year, the Chief Fiscal Officer of the State shall determine the amount of funds which will remain at the end of the fiscal year in the fund from fees collected under the provisions of this section. The Chief Fiscal Officer of the State shall allow such funds to be carried forward and made available for the same purpose in the next-succeeding fiscal year.

History. Acts 1991, No. 1105, § 24; 2019, No. 910, § 3298.

Amendments. The 2019 amendment substituted “Secretary of the Department of Finance and Administration” for “Director of the Department of Finance and Administration” in (b)(1); substituted “secretary may promulgate such rules as the secretary deems” for “director may promulgate such rules as it deems” in (b)(2); and substituted “secretary” for “director” in (c).

Subchapter 13 — Disposal of Large Animal Carcasses

A.C.R.C. Notes. References to “this chapter” in subchapters 1-12 may not apply to this subchapter which was enacted subsequently.

Effective Dates. Acts 2019, No. 910, § 6346(b): July 1, 2019. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that this act revises the duties of certain state entities; that this act establishes new departments of the state; that these revisions impact the expenses and operations of state government; and that the sections of this act other than the two uncodified sections of this act preceding the emergency clause titled ‘Funding and classification of cabinet-level department secretaries’ and ‘Transformation and Efficiencies Act transition team’ should become effective at the beginning of the fiscal year to allow for implementation of the new provisions at the beginning of the fiscal year. Therefore, an emergency is declared to exist, and Sections 1 through 6343 of this act being necessary for the preservation of the public peace, health, and safety shall become effective on July 1, 2019”.

Research References

Am. Jur. 4 Am. Jur. 2d, Ani., § 23 et seq.

Ark. L. Rev.

Noble and Looney, The Emerging Legal Framework for Animal Agricultural Waste Management in Arkansas, 47 Ark. L. Rev. 159.

C.J.S. 3A C.J.S., Animals, § 232 et seq.

2-40-1301. Definitions.

As used in this subchapter, unless the context otherwise requires:

  1. “Commission” means the Arkansas Livestock and Poultry Commission created by § 2-33-101;
  2. “Large animal” means cattle, horses, hogs, sheep, goats, cervidae, bison, llamas, alpacas, ostriches, emus, rheas, and other native or nonnative animals, excluding dogs and cats; and
  3. “Large animal carcasses” means carcasses of large animals which died as the result of sickness, suffocation, accident, or from any cause other than intentional slaughter.

History. Acts 1993, No. 522, § 1.

2-40-1302. Disposal.

    1. All large animal carcasses and all parts of large animal carcasses shall be disposed of in a manner prescribed by rules of the Arkansas Livestock and Poultry Commission.
    2. However, no large animal carcass shall be buried or otherwise disposed of in any landfill operated under a permit issued by the Division of Environmental Quality.
  1. If a person or entity conducts a farming activity at more than one (1) location, it shall not be necessary for such person or entity to have a disposal ditch or facility at each location unless specified by the State Veterinarian.

History. Acts 1993, No. 522, §§ 3, 4; 1999, No. 1164, § 2; 2019, No. 910, § 2416.

Amendments. The 2019 amendment substituted “Division of Environmental Quality” for “Arkansas Department of Environmental Quality” in (a)(2).

2-40-1303. Violation.

A person who violates this subchapter shall be subject to an administrative penalty.

History. Acts 1993, No. 522, § 2; 2017, No. 1011, § 76.

Amendments. The 2017 amendment substituted “A person who violates this subchapter shall be subject to an administrative penalty” for “Each violation of this subchapter by a responsible person shall constitute a Class A misdemeanor and shall be punishable accordingly”.

2-40-1304, 2-40-1305. [Repealed.]

Publisher's Notes. These sections, concerning regulations and responding to complaints, were repealed by Acts 2017, No. 1011, §§ 77, 78. The sections were derived from the following sources:

2-40-1304. Acts 1993, No. 522, §§ 5, 7.

2-40-1305. Acts 1993, No. 522, § 6.