[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[S. 1340 Reported in Senate (RS)]

                                                    Calendar No.    261

104th CONGRESS

  1st Session

                                S. 1340

_______________________________________________________________________

                                 A BILL

 To require the President to appoint a Commission on Concentration in 
                        the Livestock Industry.

_______________________________________________________________________

                            December 7, 1995

        Reported with an amendment and an amendment to the title
                                                       Calendar No. 261
104th CONGRESS
  1st Session
                                S. 1340

 To require the President to appoint a Commission on Concentration in 
                        the Livestock Industry.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

             October 19 (legislative day, October 18), 1995

 Mr. Daschle (for himself, Mr. Harkin, Mr. Baucus, Mr. Wellstone, Mr. 
Kerrey, Mr. Conrad, Mr. Grassley, Mr. Craig, Mr. Leahy, Mr. Dorgan, Mr. 
Bond, Mr. Pressler, Mrs. Murray, Mr. Feingold, Mr. Kohl, Mr. Burns, Mr. 
Exon, Mr. Thomas, Mr. Hatch, and Mr. Bingaman) introduced the following 
    bill; which was read twice and referred to the Committee on the 
                               Judiciary

                            December 7, 1995

 Reported by Mr. Hatch with an amendment and an amendment to the title
 [Strike out all after the enacting clause and insert the part printed 
                               in italic]

_______________________________________________________________________

                                 A BILL


 
 To require the President to appoint a Commission on Concentration in 
                        the Livestock Industry.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

<DELETED>SECTION 1. SHORT TITLE.</DELETED>

<DELETED>    This Act may be cited as the ``Livestock Concentration 
Report Act of 1995''.</DELETED>

<DELETED>SEC. 2. APPOINTMENT OF COMMISSION.</DELETED>

<DELETED>    Not later than 30 days after the date of the enactment of 
this Act, the President shall appoint a Commission on Concentration in 
the Livestock Industry which shall be composed of the Secretary of 
Agriculture, who shall be the chairperson of the Commission, and 2 
members appointed from among individuals in each of the following 
categories:</DELETED>
        <DELETED>    (1) Cattle producers.</DELETED>
        <DELETED>    (2) Hog producers.</DELETED>
        <DELETED>    (3) Lamb producers.</DELETED>
        <DELETED>    (4) Experts in antitrust laws.</DELETED>
        <DELETED>    (5) Economists.</DELETED>
        <DELETED>    (6) Corporate chief financial officers.</DELETED>
        <DELETED>    (7) Corporate procurement experts.</DELETED>

<DELETED>SEC. 3. DUTIES OF COMMISSION.</DELETED>

<DELETED>    (a) Duties.--The Commission on Concentration in the 
Livestock Industry shall--</DELETED>
        <DELETED>    (1) determine whether the study of concentration 
        in the red meat packing industry adequately--</DELETED>
                <DELETED>    (A) examined and identified regional 
                procurement markets for slaughter cattle in the 
                continental United States,</DELETED>
                <DELETED>    (B) analyzed the effects that slaughter 
                cattle procurement practices, and concentration in the 
                procurement of slaughter cattle, have on the purchasing 
                and pricing of slaughter cattle by beef 
                packers,</DELETED>
                <DELETED>    (C) examined the use of captive cattle 
                supply arrangements by beef packers and the effects of 
                such arrangements on slaughter cattle 
                markets,</DELETED>
                <DELETED>    (D) examined the economics of vertical 
                integration and of coordination arrangements in the hog 
                slaughtering and processing industry,</DELETED>
                <DELETED>    (E) examined the pricing and procurement 
                by hog slaughtering plants operating in the eastern 
                corn belt,</DELETED>
                <DELETED>    (F) reviewed the pertinent research 
                literature on issues relating to the structure and 
                operation of the meat packing industry, and</DELETED>
                <DELETED>    (G) represents, for the matters described 
                in subparagraphs (A) through (F), the current situation 
                in the livestock industry compared to the situation of 
                such industry reflected in the data on which such study 
                is based,</DELETED>
        <DELETED>    (2) review the application of the antitrust laws, 
        and the operation of other Federal laws applicable, with 
        respect to concentration and vertical integration in the 
        procurement and pricing of slaughter cattle and of slaughter 
        hogs by meat packers,</DELETED>
        <DELETED>    (3) make recommendations regarding whether the 
        laws relating to the operation of the meat packing industry 
        should be modified regarding the concentration, vertical 
        integration, and vertical coordination in such 
        industry,</DELETED>
        <DELETED>    (4) review the farm-to-retail price spread for 
        livestock during the period beginning on January 1, 1993, and 
        ending on the date the report is submitted under section 
        4,</DELETED>
        <DELETED>    (5) review the adequacy of price data obtained by 
        the Department of Agriculture under section 203 of the 
        Agricultural Marketing Act of 1946 (7 U.S.C. 1622),</DELETED>
        <DELETED>    (6) make recommendations regarding the adequacy of 
        price discovery in the livestock industry for animals held for 
        market, and</DELETED>
        <DELETED>    (7) review the lamb industry study completed by 
        the Department of Justice in 1993.</DELETED>
<DELETED>    (b) Solicitation of Information.--For purposes of 
complying with the requirements of paragraphs (2), (3), and (4) of 
subsection (a), the Commission on Concentration in the Livestock 
Industry shall solicit information from all parts of the livestock 
industry, including livestock producers, livestock marketers, meat 
packers, meat processors, and retailers.</DELETED>

<DELETED>SEC. 4. REPORT.</DELETED>

<DELETED>    (a) Submission of Report to the President.--Not later than 
90 days after the study of concentration in the red meat packing 
industry is submitted to the Congress, the Commission on Concentration 
in the Livestock Industry shall submit to the President a report 
summarizing the results of the duties carried out under section 3. Not 
later than 30 days after the President receives such report, the 
President shall terminate the Commission.</DELETED>
<DELETED>    (b) Transmission of Report to the Congress.--The President 
shall promptly transmit, to the Speaker of the House of Representatives 
and the President pro tempore of the Senate, a copy of the report the 
President receives under subsection (a).</DELETED>

<DELETED>SEC. 5. DEFINITIONS.</DELETED>

<DELETED>    For purposes of this Act--</DELETED>
        <DELETED>    (1) the term ``antitrust laws'' has the meaning 
        given it in subsection (a) of the first section of the Clayton 
        Act (15 U.S.C. 12(a)), except that such term includes section 5 
        of the Federal Trade Commission Act (15 U.S.C. 45) to the 
        extent such section applies to unfair methods of competition, 
        and</DELETED>
        <DELETED>    (2) the term ``study of concentration in the red 
        meat packing industry'' means the study of concentration in the 
        red meat packing industry proposed by the Department of 
        Agriculture in the Federal Register on January 9, 1992 (57 Fed. 
        Reg. 875), and for which funds were appropriated by Public Law 
        102-142.</DELETED>

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Livestock Concentration Report 
Act''.

SEC. 2. DEFINITIONS.

    In this Act:
            (1) Antitrust laws.--The term ``antitrust laws'' has the 
        meaning provided in subsection (a) of the first section of the 
        Clayton Act (15 U.S.C. 12(a)), except that the term includes 
        section 5 of the Federal Trade Commission Act (15 U.S.C. 45) to 
        the extent the section applies to unfair methods of 
        competition.
            (2) Commission.--The term ``Commission'' means the 
        Commission on Concentration in the Livestock Industry 
        established under section 3.
            (3) Study of concentration in the red meat packing 
        industry.--The term ``study of concentration in the red meat 
        packing industry'' means the study of concentration in the red 
        meat packing industry proposed by the Department of Agriculture 
        in the Federal Register on January 9, 1992 (57 Fed. Reg. 875), 
        and for which funds were appropriated by Public Law 102-142 
        (105 Stat. 878).

SEC. 3. ESTABLISHMENT OF COMMISSION.

    (a) In General.--A Commission on Concentration in the Livestock 
Industry shall be established that shall be composed of--
            (1) the Secretary of Agriculture, who shall be the 
        chairperson of the Commission; and
            (2) 2 members who represent each of the following 
        categories:
                    (A) Cattle producers.
                    (B) Hog producers.
                    (C) Lamb producers.
                    (D) Meat packers.
                    (E) Experts in antitrust laws.
                    (F) Economists.
                    (G) Corporate chief financial officers.
                    (H) Corporate procurement experts.
    (b) Appointment.--The members of the Commission appointed under 
subsection (a)(2) shall be appointed as follows:
            (1) The President shall appoint 4 members.
            (2) The Majority Leader of the Senate shall appoint 4 
        members.
            (3) The Minority Leader of the Senate shall appoint 2 
        members.
            (4) The Speaker of the House of Representatives shall 
        appoint 4 members.
            (5) The Minority Leader of the House of Representatives 
        shall appoint 2 members.

SEC. 4. DUTIES OF COMMISSION.

    (a) In General.--The Commission shall--
            (1) determine whether the study of concentration in the red 
        meat packing industry adequately--
                    (A) examined and identified procurement markets for 
                slaughter cattle in the continental United States;
                    (B) analyzed the effects that slaughter cattle 
                procurement practices, and concentration in the 
                procurement of slaughter cattle, have on the purchasing 
                and pricing of slaughter cattle by beef packers;
                    (C) examined the use of captive cattle supply 
                arrangements by beef packers and the effects of the 
                arrangements on slaughter cattle markets;
                    (D) examined the economics of vertical integration 
                and of coordination arrangements in the hog 
                slaughtering and processing industry;
                    (E) examined the pricing and procurement by hog 
                slaughtering plants operating in the Eastern corn belt;
                    (F) reviewed the pertinent research literature on 
                issues relating to the structure and operation of the 
                meat packing industry; and
                    (G) represents, with respect to the matters 
                described in subparagraphs (A) through (F), the current 
                situation in the livestock industry compared to the 
                situation of the industry reflected in the data on 
                which the study is based;
            (2) review the impact of the antitrust laws with respect to 
        concentration in the livestock industry;
            (3) review laws and regulations relating to the operation 
        of the meat packing industry regarding the concentration, 
        vertical integration, and vertical coordination in the 
        industry;
            (4) review the farm-to-retail price spread for livestock 
        during the period beginning on January 1, 1993, and ending on 
        the date the report is submitted under section 5(a);
            (5) review the adequacy of price data obtained by the 
        Department of Agriculture under section 203 of the Agricultural 
        Marketing Act of 1946 (7 U.S.C. 1622);
            (6) make recommendations regarding the adequacy of price 
        discovery in the livestock industry for animals held for 
        market; and
            (7) review the lamb industry study completed by the 
        Department of Justice during 1993.
    (b) Solicitation of Information.--For purposes of complying with 
paragraphs (2), (3), and (4) of subsection (a), the Commission shall 
solicit information from all parts of the livestock industry, including 
livestock producers, livestock marketers, meat packers, meat 
processors, and retailers.

SEC. 5. REPORT AND TERMINATION.

    (a) Report.--Not later than 90 days after the study of 
concentration in the red meat packing industry is submitted to 
Congress, the Commission shall submit to the President, the Speaker of 
the House of Representatives, and the President pro tempore of the 
Senate a report summarizing the results of the duties carried out under 
section 4.
    (b) Termination.--Not later than 30 days after submission of the 
report, the Commission shall terminate.

    Amend the title so as to read: ``A bill to establish a Commission 
on Concentration in the Livestock Industry, and for other purposes.''.
                                 <all>