Senate Substitute for HOUSE BILL No. 2123*
An  Act concerning agriculture; relating to poultry production contracts;
prohibited acts and relief therefrom.
Be it enacted by the Legislature of the State of Kansas:

      Section  1. (a) As used in this section: (1) ``Contractor'' means a per-
son who owns poultry that is raised or cared for by a poultry producer;

      (2) ``poultry'' means posthatched to finished live chickens or turkeys
that are raised by a poultry producer for slaughter by another;

      (3) ``poultry producer'' means any individual or group of individuals
that raise or care for live poultry for slaughter by another under terms of
a written production contract;

      (4) ``production contract'' means any written agreement that provides
for the raising and care of poultry by a poultry producer for a contractor;

      (5) ``production'' means to raise and care for poultry under the terms
of a poultry production contract.

      (b) Poultry production contracts shall: (1) Be written in a readable
form and shall be accompanied by a clearly written disclosure statement
setting forth the nature of the material risks faced by the poultry producer
if the poultry producer enters into such poultry production contract;

      (2) be negotiated and entered into in an environment free from unfair
or deceptive trade practices or other violations of law;

      (3) not require disclosure of trade secrets and not be contrary to the
uniform trade secrets act, K.S.A. 60-3320 et seq., and amendments

      (4) not require poultry producers to reveal intellectual property rights
nor disclose personal financial information or production practices;

      (5) not prohibit nor discourage poultry producers from associating
with other poultry producers to compare contract terms or address con-
cerns or problems;

      (6) not prohibit nor discourage poultry producers from seeking pro-
fessional, legal, financial and agricultural production advice and counsel
related to production contract terms, obligations and responsibilities;

      (7) not allow a contractor to terminate any poultry production con-
tract with a poultry producer that has complied with the provisions of the
poultry production contract; and

      (8) not deny poultry producers of the ability to address a dispute in
the Kansas courts. The poultry production contract may contain a pro-
vision to have the option of submitting any dispute arising under a poultry
production contract to arbitration.

      (c) Any provision of a poultry production contract which violates the
provisions of subsection (b) is void and unenforceable. This subsection
shall not affect other provisions of a poultry production contract, including
a contract or related document, policy or agreement which can be given
effect without the voided provision.

      (d) A poultry producer who suffers damages because of a contractor's
violation of the provisions of subsection (b) may obtain appropriate legal
and equitable relief, including, but not limited to, injunctive relief and
punitive damages, as provided in K.S.A. 60-3702, and amendments
thereto. In such a civil action against the contractor, the court may award
the poultry producer who is the prevailing party, reasonable attorney fees
and other litigation expenses.

      Sec.  2. This act shall take effect and be in force from and after its
publication in the Kansas register.

Approved April 24, 2002.
 Published in the Kansas Register May 2, 2002.