[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[H.R. 693 Introduced in House (IH)]







106th CONGRESS
  1st Session
                                H. R. 693

To amend the Agricultural Marketing Act of 1946 to institute a program 
  of mandatory livestock market reporting for meat packers regarding 
 prices, volume, and the terms of sale for the procurement of domestic 
     and imported livestock and livestock products, to improve the 
     collection of information regarding swine inventories and the 
     slaughtering and measurement of swine, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           February 10, 1999

   Mr. Thune (for himself, Mr. Minge, Mr. Boswell, Mrs. Emerson, Mr. 
   Pomeroy, Mr. Evans, Mr. Weller, and Mrs. Clayton) introduced the 
   following bill; which was referred to the Committee on Agriculture

_______________________________________________________________________

                                 A BILL


 
To amend the Agricultural Marketing Act of 1946 to institute a program 
  of mandatory livestock market reporting for meat packers regarding 
 prices, volume, and the terms of sale for the procurement of domestic 
     and imported livestock and livestock products, to improve the 
     collection of information regarding swine inventories and the 
     slaughtering and measurement of swine, and for other purposes.

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

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Livestock Industry 
Fairness and Enhancement Act''.
    (b) Table of Contents.--The table of contents of this Act is as 
follows:

Sec. 1. Short title; table of contents.
Sec. 2. Mandatory livestock market reporting.
Sec. 3. Collection, collation, and reporting of data and statistics 
                            related to production of swine, pork, and 
                            pork products.
Sec. 4. Report on jurisdiction, duties, and authorities of Secretary of 
                            Agriculture regarding packers, livestock, 
                            and livestock products.
Sec. 5. Retail price report of representative meat products.
Sec. 6. Regulations.

SEC. 2. MANDATORY LIVESTOCK MARKET REPORTING.

    (a) Reporting Required.--The Agricultural Marketing Act of 1946 is 
amended by inserting after section 203 (7 U.S.C. 1622) the following 
new section:

``SEC. 203A. MANDATORY LIVESTOCK MARKET REPORTING.

    ``(a) Definitions.--In this section:
            ``(1) Livestock.--The term `livestock' means cattle, sheep, 
        and swine, whether live or dead.
            ``(2) Livestock product.--The term `livestock product' 
        means any product or byproduct produced or processed in whole 
        or in part from livestock, including boxed beef, boxed lamb, 
        and any value-added product derived from pork.
            ``(3) Packer.--Subject to subsection (b)(1), the term 
        `packer' means any person engaged in the business of--
                    ``(A) buying livestock in commerce for purposes of 
                slaughter;
                    ``(B) manufacturing or preparing livestock products 
                for sale or shipment in commerce; or
                    ``(C) marketing livestock products in an 
                unmanufactured form acting as a wholesale broker, 
                dealer, or distributor in commerce.
            ``(4) Prices, volume, and terms of sale.--The term `prices, 
        volume, and terms of sale' includes base price, premium and 
        discount price factors, formula-based pricing systems, quality 
        characteristics (including percent lean and carcass weight), 
        and any current or future contract offered by a packer.
            ``(5) Secretary.--The term `Secretary' means the Secretary 
        of Agriculture.
    ``(b) Mandatory Reporting Required.--
            ``(1) Packers subject to requirement.--This subsection 
        applies only to a packer that the Secretary estimates is 
        engaged in the business of buying, manufacturing, preparing, or 
        marketing more than five percent (by daily volume) of--
                    ``(A) all cattle, all sheep, or all swine that are 
                bought, prepared, or marketed in the United States;
                    ``(B) all livestock products that are bought, 
                manufactured, prepared, or marketed in the United 
                States; or
                    ``(C) any combination of subparagraphs (A) and (B).
            ``(2) Required information.--The Secretary shall require 
        each packer described in paragraph (1) to report to the 
        Secretary, in such manner as the Secretary shall require, such 
        information relating to prices, volume, and terms of sale for 
        the procurement of domestic and imported livestock and 
        livestock products as the Secretary determines is appropriate.
            ``(3) Administration.--In carrying out paragraph (2), the 
        Secretary shall require packers described in paragraph (1)--
                    ``(A) to separately report domestic and imported 
                livestock and livestock products; and
                    ``(B) to report the information required under 
                paragraph (2) by the next business day, as defined by 
                the Secretary.
            ``(4) Noncompliance.--It shall be unlawful for any packer 
        described in paragraph (1) to knowingly fail or refuse to 
        provide to the Secretary information required under paragraph 
        (2).
            ``(5) Verification.--The Secretary may take such actions as 
        are necessary to verify the accuracy of the information 
        required under paragraph (2), regardless of the source of the 
        information.
            ``(6) Cease and desist and civil penalty.--
                    ``(A) In general.--If the Secretary has reason to 
                believe that a packer described in paragraph (1) is 
                violating this subsection (or a regulation issued under 
                this subsection), the Secretary may issue an order to 
                cease and desist from continuing the violation and 
                assess a civil penalty of not more than $10,000 for 
                each violation. The order shall be issued only after 
                notice and an opportunity for hearing is provided to 
                the packer.
                    ``(B) Factors.--In determining the amount of a 
                civil penalty to be assessed under subparagraph (A), 
                the Secretary shall consider the gravity of the 
                offense, the size of the business involved, and the 
                effect of the penalty on the ability of the packer to 
                continue in business.
            ``(7) Referral to attorney general.--If, after expiration 
        of the period for appeal or after the affirmance of a civil 
        penalty assessed under paragraph (6), the packer against whom 
        the civil penalty is assessed fails to pay the civil penalty, 
        the Secretary may refer the matter to the Attorney General, who 
        may recover the amount of the civil penalty in a civil action 
        in United States district court.
    ``(c) Voluntary Reporting.--The Secretary shall encourage voluntary 
reporting by packers that are not subjected to a mandatory reporting 
requirement under subsection (b).
    ``(d) Availability of Information.--
            ``(1) Timely availability.--The Secretary shall make 
        information received under this section available to the public 
        in a timely manner to permit the use of the information while 
        it is still relevant.
            ``(2) Limitations.--The disclosure of information under 
        paragraph (1) may be made only in a form that ensures the 
        following:
                    ``(A) The identity of the parties involved in any 
                transaction described in a report is not disclosed.
                    ``(B) The identity of the packer submitting a 
                report is not disclosed.
                    ``(C) The confidentiality of proprietary business 
                information is otherwise protected.
    ``(e) Effect on Other Laws.--Nothing in this section restricts or 
modifies the authority of the Secretary to collect voluntary reports in 
accordance with other provisions of law.
    ``(f) Termination of Mandatory Requirement.--The reporting 
requirement established by subsection (b) shall expire at the end of 
the three-year period beginning on the date of the enactment of this 
section.''.
    (b) Repeal of Pilot Price Reporting Investigation.--Section 416 of 
the Packers and Stockyards Act, 1921 (7 U.S.C. 229a), as added by 
section 1127(a) of the Agriculture, Rural Development, Food and Drug 
Administration, and Related Agencies Appropriations Act, 1999 (as 
contained in section 101(a) of division A of Public Law 105-277), is 
repealed.

SEC. 3. COLLECTION, COLLATION, AND REPORTING OF DATA AND STATISTICS 
              RELATED TO PRODUCTION OF SWINE, PORK, AND PORK PRODUCTS.

    The Agricultural Marketing Act of 1946 is amended by inserting 
after section 203A (as added by section 2 of this Act) the following 
new section:

``SEC. 203B. SPECIAL REPORTING AND MEASUREMENT REQUIREMENTS REGARDING 
              SWINE.

    ``(a) Definitions.--In this section:
            ``(1) Packer.--The term `packer' has the meaning given the 
        term in section 203A(a).
            ``(2) Swine.--The term `swine' means the porcine animal 
        raised for feeder pigs, seedstock, or slaughter.
            ``(3) Barrow.--The term `barrow' means a neutered male 
        swine.
            ``(4) Gilt.--The term `gilt' means a young female swine, 
        one that has not produced a litter.
            ``(5) Secretary.--The term `Secretary' means the Secretary 
        of Agriculture.
    ``(b) Swine Inventory Report Improvement.--
            ``(1) New reporting requirement.--As soon as practicable 
        after the date of the enactment of this section, the Secretary 
        of Agriculture shall implement a reporting procedure that 
        results in a monthly report of the inventory of swine located 
        on farms and other confinement or production areas, in the 17 
        leading pork producing States in the United States. The 
        reporting procedure shall include in a separate category the 
        number of bred female swine that are assumed, or have been 
        confirmed, as pregnant during the reporting period.
            ``(2) Effect on existing report.--The Secretary shall 
        continue to maintain and publish the current quarterly report 
known as the ``Hogs and Pigs Inventory Report'' for a period of not 
less than eight quarters after the inception of the monthly report 
initiated under paragraph (1).
            ``(3) Availability of report.--The monthly report referred 
        to in paragraph (1) shall be made available to swine producers, 
        packers, market analysts and researchers, and such other 
        persons and entities as the Secretary determines to be in the 
        public interest. The quarterly report continued as provided in 
        paragraph (2) shall be designed to be provided to those same 
        persons or entities intended to receive the monthly report so 
        as to provide them with a data overlap period until the monthly 
        report is fully functional.
    ``(c) Carcass Measurement and Value Pricing.--
            ``(1) Lean content measurements.--As soon as practicable 
        after the date of the enactment of this section, the Secretary 
        shall conduct a study and survey and issue regulations 
        requiring packers to implement a program to measure the lean 
        content (containing little or no fat) of swine carcasses using 
        trained and impartial personnel. In issuing the regulation, the 
        Secretary shall provide for the administration of the program 
        and inspection of such packer operations by personnel of the 
        Grain Inspection, Packers and Stockyards Administration.
            ``(2) Implementation report.--Not later than six months 
        after the date of the enactment of this section, the Secretary 
        shall submit to Congress a report setting forth the actions 
        taken to implement this subsection. The report shall set forth 
        the numbers and names of packers who have initiated such a 
        measurement program on a voluntary basis, the percentage of the 
        packing industry that has initiated such voluntary programs, 
        the date such voluntary programs were initiated, the estimated 
        cost to packers to implement a voluntary program, the estimated 
        cost to be incurred by packers to implement the mandatory 
        program required by paragraph (1), and other benefits that may 
        accrue from the program.
            ``(3) Inspection of equipment.--This paragraph applies to a 
        packer that slaughters more than five percent (by daily volume) 
        of all swine that are bought, prepared, or marketed in the 
        United States. All equipment used by such a packer in the 
        measurement and determination of the value of swine shall be 
        subject to inspection by personnel of the Grain Inspection, 
        Packers and Stockyards Administration designated by the 
        Secretary. All formulas and pricing procedures used to 
        determine the value of swine by such a packer may be obtained 
        by the Secretary who shall ensure its publication as determined 
        by the Secretary.
    ``(d) Barrow and Gilt Slaughter.--The Secretary shall promptly 
obtain, either through a valid reporting procedure for a packer 
described in subsection (c)(3) or other valid statistical sampling 
procedure at packing plants as determined by the Secretary, data on the 
division of the total market slaughter of swine that reflects 
differences in numbers between barrows and gilts. Such information 
shall be made available to swine producers in a report published by the 
Secretary.''.

SEC. 4. REPORT ON JURISDICTION, DUTIES, AND AUTHORITIES OF SECRETARY OF 
              AGRICULTURE REGARDING PACKERS, LIVESTOCK, AND LIVESTOCK 
              PRODUCTS.

    (a) Report Required.--Not later than 90 days after the date of the 
enactment of this Act, the Secretary of Agriculture shall submit to 
Congress a report describing the jurisdiction, power, duties, and 
authorities of the Secretary over packers, livestock, livestock 
products, and interstate commerce in livestock and livestock products 
under the Agricultural Marketing Act of 1946 (7 U.S.C. 1621 et seq.), 
the Packers and Stockyards Act, 1921 (7 U.S.C. 181 et seq.), and all 
other related laws, such as sections 6, 8, 9, and 10 of the Federal 
Trade Commission Act (as referred to in section 402 of the Packers and 
Stockyards Act, 1921 (7 U.S.C. 222)).
    (b) Content.--With respect to such jurisdiction, power, duties, and 
authorities, the report shall address the following:
            (1) The burdens on, and obstructions to, interstate 
        commerce in livestock and livestock products by packers and 
        other persons who enter into arrangements with packers that are 
        contrary to, or do not protect, the public interest.
            (2) Non-competitive pricing arrangements between or among 
        packers, or other persons involved in the processing, 
        distribution, or sale of livestock or livestock products to 
        consumers, including those provided for in contracts for the 
        purchase of livestock.
            (3) Measures to provide transparency to, and effective 
        monitoring of, contracts entered into between packers and 
        livestock producers.
            (4) Investigations that relate to, and affect the 
        disclosure of, transactions involved in the business of packers 
        involved in the ownership of such businesses, the pricing of 
        livestock to producers, and the pricing of livestock products 
        in the entire merchandising chain.
            (5) Cooperation and enhancement by the Secretary with the 
        enforcement of actions initiated by other Federal agencies to 
        protect trade and commerce in the livestock and livestock 
        product industries against unlawful restraints and monopolies.
    (c) Definitions.--In this section, the terms ``packer'', 
``livestock'', and ``livestock products'' have the meaning given such 
terms in section 203A of the Agricultural Marketing Act of 1946, as 
added by section 2 of this Act.

SEC. 5. REPORT ON THE ABILITY OF THE SECRETARY OF AGRICULTURE TO 
              PROVIDE RELIABLE PERIODIC RETAIL PRICE REPORTS.

    Not later than 90 days after the date of the enactment of this Act, 
the Secretary of Agriculture shall submit to Congress a report 
describing the ability of the Department of Agriculture to provide 
reliable periodic reports of the retail prices of representative meat 
products. The report shall include at least the following:
            (1) Existing private and public retail price reporting 
        services.
            (2) Existing authorities to use, interpret, and publish 
        data from such services, and any additional authorities 
        necessary to improve the use, interpretation, and publication 
        of such data.
            (3) Opportunities to cooperate with other Federal and State 
        agencies.

SEC. 6. REGULATIONS.

    (a) Issuance of Regulations.--Not later than 180 days after the 
date of the enactment of this Act, the Secretary of Agriculture shall 
issue such regulations as the Secretary considers necessary to 
implement the amendments made by this Act. The Secretary shall issue 
the regulations without regard to the following:
            (1) The notice and comment provisions of section 553 of 
        title 5, United States Code.
            (2) The Statement of Policy of the Secretary of Agriculture 
        effective July 24, 1971 (36 Fed. Reg. 13804), relating to 
        notices of proposed rulemaking and public participation in 
        rulemaking.
            (3) Chapter 35 of title 44, United States Code (commonly 
        known as the Paperwork Reduction Act).
    (b) Congressional Review of Agency Rulemaking.--In issuing 
regulations under subsection (a), the Secretary of Agriculture shall 
use the authority provided under section 808(2) of title 5, United 
States Code.
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