[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[H.R. 921 Introduced in House (IH)]







106th CONGRESS
  1st Session
                                H. R. 921

To direct the Secretary of Agriculture to provide emergency market loss 
 assistance to swine producers for losses incurred due to economic and 
   market conditions in the United States beyond their control that 
 occurred during a three-month period in 1998, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             March 2, 1999

  Mr. LaHood introduced the following bill; which was referred to the 
   Committee on Agriculture, and in addition to the Committee on the 
 Budget, for a period to be subsequently determined by the Speaker, in 
   each case for consideration of such provisions as fall within the 
                jurisdiction of the committee concerned

_______________________________________________________________________

                                 A BILL


 
To direct the Secretary of Agriculture to provide emergency market loss 
 assistance to swine producers for losses incurred due to economic and 
   market conditions in the United States beyond their control that 
 occurred during a three-month period in 1998, 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 ``Swine Producers 
Market Loss Assistance Act of 1999''.
    (b) Table of Contents.--The table of contents of this Act is as 
follows:

Sec. 1. Short title; table of contents.
Sec. 2. Findings and purposes.
Sec. 3. Definitions.
Sec. 4. Market loss assistance.
Sec. 5. Payment amounts and payment limitations.
Sec. 6. Relationship to other payments.
Sec. 7. Emergency requirement; use of Commodity Credit Corporation.
Sec. 8. Mandatory livestock market reporting.
Sec. 9. Regulations.

SEC. 2. FINDINGS AND PURPOSES.

    (a) Findings.--Congress finds the following:
            (1) The marketing relationships of swine producers with 
        meat packers have undergone significant changes in recent 
        years, and these changes have had an adverse effect on the 
        prices swine producers receive for swine.
            (2) The concentration of the meat packing industry as it 
        relates to swine slaughter and processing, and the increase in 
        the number of live swine imported into the United States for 
        slaughter and processing, have had an adverse effect on the 
        availability of slaughter capacity in the United States and 
        have adversely affected the price of swine in the United 
        States.
            (3) A swine market price crisis occurred in the United 
        States during the period beginning on October 1, 1998, through 
        December 31, 1998, which can be summarized as resting on three 
        salient facts:
                    (A) A 10 percent increase in swine available for 
                slaughter during the period.
                    (B) An eight percent decrease over the prior year 
                in packer slaughter capacity.
                    (C) A 37 percent increase in Canadian swine imports 
                into the United States during the period.
            (4) The fourth quarter of 1998 (adjusted for inflation) 
        registered the lowest live swine prices in the United States 
        spot market for the 20th century, averaging 37 percent lower 
        than 1932.
            (5) Swine producers had approximately $2,600,000,000 in 
        equity capital investment reduction in 1998 in the value of 
        their production ownership.
            (6) According to Ron Plain, University of Missouri 
        Extension Economist, swine producers' share of the consumer 
        pork dollar was approximately $0.22 in 1998, and 1998 was the 
        first year since records have been maintained that swine 
        producers received less than 30 percent of the consumer dollar 
        spent for pork and pork products.
            (7) Despite relatively little change in retail prices for 
        pork and pork products, consumption of pork and pork products 
        increased seven percent in 1998, and such products were the 
        only meat protein that reflected a net per capita consumption 
        increase in 1998 over 1997.
    (b) Purpose.--The purpose of this Act is to partially compensate 
swine producers who, due to circumstances beyond their control, 
incurred substantial losses in the marketing of their swine during the 
fourth quarter of 1998 as a result of--
            (1) adverse economic factors in the swine market; and
            (2) the failure of the Federal Government to pursue foreign 
        trade opportunities and to obtain cooperative limitations on 
        imports that substantially and adversely affected an industry 
        already under stressed market pricing conditions.

SEC. 3. DEFINITIONS.

    In this Act:
            (1) The term ``swine'' means the porcine animal raised for 
        feeder pigs or slaughter produced solely in the United States.
            (2) The term ``swine producer'' means a person in the 
        United States who, during the crisis period, produced swine for 
        feeder pigs or slaughter.
            (3) The term ``crisis period'' means during the period 
        beginning on October 1, 1998, through December 31, 1998.
            (4) The term ``packer'' has the meaning given the term in 
        section 201 of the Packers and Stockyards Act, 1921 (7 U.S.C. 
        191).
            (5) The term ``feeder pig'' means young swine that were 
        sold, during the crisis period, to another person for further 
        feeding for a period of more than one month.
            (6) The term ``swine operation'' means any person or group 
        of persons who, as a single unit, raised swine during the 
        crisis period and whose production and facilities are located 
        in the United States.
            (7) The term ``Secretary'' means the Secretary of 
        Agriculture.

SEC. 4. MARKET LOSS ASSISTANCE.

    (a) Provision of Assistance.--As provided in section 7(b), the 
Secretary of Agriculture shall administer a program to provide 
financial assistance to swine producers to partially offset financial 
market losses they incurred on swine they sold during the crisis 
period.
    (b) Eligibility for Payments.--Except as provided in subsection 
(c), to be eligible for assistance under this Act, a swine producer 
must have maintained a swine operation during the crisis period and 
marketed swine for slaughter or the equivalent thereof for feeder pigs 
during the crisis period.
    (c) Certain Producers Ineligible.--The following swine producers 
are ineligible for assistance under this Act:
            (1) A swine producer that is a subsidiary of a publicly 
        owned packer.
            (2) A swine producer that is wholly or substantially owned 
        by companies or corporations affiliated with a publicly owned 
        packer.
            (3) A swine producer that is otherwise directly or 
        indirectly controlled by a publicly owned packer.
    (d) Application Process.--In administering this Act, the Secretary 
shall limit the assistance to eligible swine producers by an 
application procedure or otherwise, as provided in this Act, and as 
further delineated in regulations consistent with this Act. The swine 
producer shall submit such information to the Secretary in support of 
the application as the Secretary may require to enable the Secretary to 
make an eligibility determination for assistance under this Act.

SEC. 5. PAYMENT AMOUNTS AND PAYMENT LIMITATIONS.

    (a) Fair and Equitable Distribution.--Assistance made available 
under this Act shall be distributed in a fair and equitable manner to 
swine producers, either those for slaughter or the equivalent thereof 
for feeder pigs and other swine, who have incurred losses in their 
operations in all geographic regions of the United States.
    (b) Amount of Payments.--
            (1) Per swine.--The amount of assistance to be paid to a 
        eligible swine producer shall not exceed $25.00 per slaughter-
        weight swine that was marketed by the producer during the 
        crisis period, except that the payment for feeder pigs shall 
        not exceed $9.00 per feeder pig marketed during the crisis 
        period, as provided by regulations issued by the Secretary 
        consistent with this Act.
            (2) Calculation.--Subject to subsection (c), payments made 
        to swine operation producers under this Act shall be calculated 
        in an amount determined by--
                    (A) multiplying the number of eligible swine 
                marketed and slaughtered during the crisis period by 
                $25.00;
                    (B) adding to the amount in subparagraph (A) the 
                sum of the number of eligible feeder pigs, if any, 
                marketed during the crisis period multiplied by $9.00; 
                and
                    (C) deducting payments received in the program 
                specified in section 6(b) by the producer.
    (c) Payment Limitations.--Payments may not exceed $50,000 per swine 
operation for a swine producer.

SEC. 6. RELATIONSHIP TO OTHER PAYMENTS.

    (a) Assistance in Addition to Other Payments.--Assistance provided 
under this Act is in addition to--
            (1) assistance made available under subtitles A, B, and C 
        of title XI 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; 7 U.S.C. 1421 note);
            (2) payments or loans obtained by a person under the 
        Agricultural Market Transition Act (7 U.S.C. 7201 et seq.);
            (3) payments received by a person for the 1998 crop year 
        under the noninsured crop assistance program established under 
        section 196 of such Act (7 U.S.C. 7333);
            (4) crop insurance indemnities provided for 1998 crops 
        under the Federal Crop Insurance Act (7 U.S.C. 1501 et seq.); 
        and
            (5) emergency loans made available for 1998 production 
        under subtitle C of the Consolidated Farm and Rural Development 
        Act (7 U.S.C. 1961 et seq.).
    (b) Payments Under Small Hog Operation Program.--Assistance and 
payments made to swine producers under the Small Hog Operation Program 
of the Department of Agriculture, as announced January 8, 1999, using 
funds available under section 32 of the Act of August 24, 1935 (7 
U.S.C. 612c), shall be deducted from payments made to swine producers 
under this Act.

SEC. 7. EMERGENCY REQUIREMENT; USE OF COMMODITY CREDIT CORPORATION.

    (a) Designation by Congress as an Emergency Requirement.--
Notwithstanding the last sentence of section 251(e) of the Balanced 
Budget and Emergency Deficit Control Act of 1985, amounts made 
available by this Act are designated by Congress as an emergency 
requirement pursuant to section 251(e) of the Balanced Budget Deficit 
Control Act of 1985.
    (b) Commodity Credit Corporation.--The Secretary shall use the 
funds, facilities, and authorities of the Commodity Credit Corporation 
to carry out the provisions of this Act (other than the amendments made 
by section 8).

SEC. 8. 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. 9. REGULATIONS.

    (a) Issuance of Regulations.--As soon as practicable after the date 
of enactment of this Act, the Secretary and the Commodity Credit 
Corporation, as appropriate, shall issue such regulations as are 
necessary and appropriate to its implementation. The Secretary's 
regulations shall address, among other matters, any misrepresentations, 
schemes, or devices used by applicants in submitting claims for 
benefits, appeals applicable with respect to those applicants 
dissatisfied with determination of benefits, and provisions relating to 
entitlement to benefits by estates, trusts, and minors. The issuance of 
the regulations shall be made without regard to--
            (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; and
            (3) chapter 35 of title 44, United States Code (commonly 
        known as the ``Paperwork Reduction Act'').
    (b) Congressional Review of Agency Rulemaking.--In carrying out 
this Act, the Secretary shall use the authority provided under section 
808(2) of title 5, United States Code.
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