[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[S. 2411 Introduced in Senate (IS)]







106th CONGRESS
  2d Session
                                S. 2411

To enhance competition in the agricultural sector and to protect family 
     farms and ranches and rural communities from unfair, unjustly 
discriminatory, or deceptive practices by agribusinesses, and for other 
                               purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             April 12, 2000

   Mr. Daschle (for himself, Mr. Leahy, Mr. Harkin, Mr. Conrad, Mr. 
 Dorgan, Mr. Johnson, Mr. Feingold, Mr. Kohl, Mr. Kerrey, Mr. Baucus, 
Mr. Rockefeller, Mr. Wellstone, Mr. Levin, and Mr. Jeffords) introduced 
the following bill; which was read twice and referred to the Committee 
                on Agriculture, Nutrition, and Forestry

_______________________________________________________________________

                                 A BILL


 
To enhance competition in the agricultural sector and to protect family 
     farms and ranches and rural communities from unfair, unjustly 
discriminatory, or deceptive practices by agribusinesses, 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 ``Farmers and 
Ranchers Fair Competition Act of 2000''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.
Sec. 2. Findings and purposes.
Sec. 3. Definitions.
Sec. 4. Prohibitions against unfair practices in transactions involving 
                            agricultural commodities.
Sec. 5. Reports of the Secretary on potential unfair practices.
Sec. 6. Plain language and disclosure requirements for contracts.
Sec. 7. Report on corporate structure.
Sec. 8. Mandatory funding for staff.
Sec. 9. General Accounting Office study.
Sec. 10. Authority to promulgate regulations.

SEC. 2. FINDINGS AND PURPOSES.

    (a) Findings.--Congress makes the following findings:
            (1) Congressional Joint Economic Committee data suggests 
        that over the last 15 years, agribusiness profits have come 
        almost exclusively out of producer income, rather than from 
        increased retail prices. Given the lack of market power of 
        producers, this data raises the question of whether the trend 
        has been a natural market development or is instead a sign of 
        market failure.
            (2) Most economists agree that in the last 15 years the 
        real market price for a market basket of food has increased by 
        approximately 3 percent, while the farm value of that food has 
        fallen by approximately 38 percent. Over that period, marketing 
        costs have decreased by 15 percent, which should have narrowed 
        rather than widened the gap.
            (3) There is significant concern that increasingly 
        vertically integrated multinational corporations, especially 
        those that own broad biotechnology patents, may be able to 
        exert unreasonable and excessive market power in the future by 
        acquiring companies that own other broad biotechnology patents.
            (4) The National Association of Attorneys General is very 
        concerned with the high degree of economic concentration in the 
        agricultural sector and the great potential for anticompetitive 
        practices and behavior. They estimate the top 4 meat packing 
        firms control over 80 percent of steer and heifer slaughter, 
        over 55 percent of hog slaughter, and over 65 percent of sheep 
        slaughter. Increased concentration in the dairy procurement and 
        processing sector is also raising significant concerns.
            (5) In the grain industry, United States Department of 
        Agriculture reports that the top 4 firms controlled 56 percent 
        of flour milling, 73 percent of wet corn milling, 71 percent of 
        soybean milling, and 62 percent of cotton seed oil milling.
            (6) Moreover, the figures in paragraphs (4) and (5) 
        underestimate true levels of concentration and potential market 
        power because they fail to reflect the web of unreported and 
        difficult to trace joint ventures, strategic alliances, 
        interlocking directorates, and other partial ownership 
        arrangements that link many large corporations.
            (7) Concentration of market power also has the effect of 
        increasing the transfer of investment, capital, jobs, and 
        necessary social services out of rural areas to business 
        centers throughout the world. Many individuals representing a 
        wide range of expertise have expressed concern with the 
        potential implications of this trend for the greater public 
        good.
            (8) The recent increase in contracting for the production 
        or sale of agricultural commodities, such as livestock and 
        poultry, is a cause for concern because of the significant 
        bargaining power the buyers of these products or services wield 
        over individual farmers and ranchers.
            (9) Transparent, freely accessible, and competitive markets 
        are being supplanted by transfer prices set within vertically 
        integrated firms and by the increasing use of private 
        contracts.
            (10) Agribusiness firms are showing record profits at the 
        same time that farmers and ranchers are struggling to survive 
        an ongoing price collapse and erratic price trends.
            (11) The efforts of farmers and ranchers to improve their 
        market position is hampered by--
                    (A) extreme disparities in bargaining power between 
                agribusiness firms and the hundreds of thousands of 
                individual farmers and ranchers that sell products to 
                them;
                    (B) the rapid increase in the use of private 
                contracts that disrupt price discovery and can unfairly 
                disadvantage producers;
                    (C) the extreme market power of agribusiness firms 
                and alleged anticompetitive practices in the industry;
                    (D) shrinking opportunities for market access by 
                producers; and
                    (E) the direct and indirect impact these factors 
                have on the continuing viability of thousands of rural 
                communities across the country.
    (b) Purposes.--The purposes of this Act are to--
            (1) enhance fair and open competition in rural America, 
        thereby fostering innovation and economic growth;
            (2) permit the Secretary to take actions to enhance the 
        bargaining position of family farmers and ranchers, and to 
        promote the viability of rural communities nationwide;
            (3) protect family farms and ranches from--
                    (A) unfair, unjustly discriminatory, or deceptive 
                practices or devices;
                    (B) false or misleading statements;
                    (C) retaliation related to statements lawfully 
                provided; and
                    (D) other unfair trade practices employed by 
                processors and other agribusinesses; and
            (4) permit the Secretary to take actions to enhance the 
        viability of rural communities nationwide.

 SEC. 3. DEFINITIONS.

    In this Act:
            (1) Agricultural commodity.--The term ``agricultural 
        commodity'' has the meaning given the term in section 102 of 
        the Agricultural Trade Act of 1978 (7 U.S.C. 5602).
            (2) Agricultural cooperative.--The term ``agricultural 
        cooperative'' means an association of persons engaged in the 
        production, marketing, or processing of an agricultural 
        commodity that meets the requirements of the Act of February 
        18, 1922, ``An Act to authorize association of producers of 
        agricultural products'' (7 U.S.C. 291 et seq.; 42 Stat. 388) 
        (commonly known as the ``Capper-Volstead Act'').
            (3) Broker.--The term ``broker'' means any person engaged 
        in the business of negotiating sales and purchases of any 
        agricultural commodity in interstate or foreign commerce for or 
        on behalf of the vendor or the purchaser, except that no person 
        shall be considered a broker if the person's sales of such 
        commodities are not in excess of $1,000,000 per year.
            (4) Commission merchant.--The term ``commission merchant'' 
        means any person engaged in the business of receiving in 
        interstate or foreign commerce any agricultural commodity for 
        sale, on commission, or for or on behalf of another, except 
        that no person shall be considered a commission merchant if the 
        person's sales of such commodities are not in excess of 
        $1,000,000 per year.
            (5) Dealer.--The term ``dealer'' means--
                    (A) any person (except an agricultural cooperative) 
                engaged in the business of buying, selling, or 
                marketing agricultural commodities in wholesale or 
                jobbing quantities, as determined by the Secretary, in 
                interstate or foreign commerce, except--
                            (i) no person shall be considered a dealer 
                        with respect to sales or marketing of any 
                        agricultural commodity of that person's own 
                        raising provided such sales or marketing of 
                        such agricultural commodities do not exceed 
                        $10,000,000 per year; and
                            (ii) no person shall be considered a dealer 
                        who buys, sells, or markets less than 
                        $1,000,000 per year of such commodities; and
                    (B) an agricultural cooperative which sells or 
                markets agricultural commodities of its members' own 
                production if such agricultural cooperative sells or 
                markets more than $1,000,000 of its members' production 
                per year of such commodities.
            (6) Processor.--The term ``processor'' means--
                    (A) any person (except an agricultural cooperative) 
                engaged in the business of handling, preparing, or 
                manufacturing (including slaughtering) of an 
                agricultural commodity or the products of such 
                agricultural commodity for sale or marketing in 
                interstate or foreign commerce for human consumption 
                except--
                            (i) no person shall be considered a 
                        processor with respect to the handling, 
                        preparing, or manufacturing (including 
                        slaughtering) of an agricultural commodity of 
                        that person's own raising provided such sales 
                        or marketing of such agricultural commodities 
                        do not exceed $10,000,000 per year; and
                            (ii) no person who handles, prepares, or 
                        manufactures (including slaughtering) an 
                        agricultural commodity in an amount less than 
                        $1,000,000 per year shall be considered a 
                        processor; and
                    (B) an agricultural cooperative which processes 
                agricultural commodities of its members' own production 
                if such agricultural cooperative processes more than 
                $1,000,000 of its members' production of such 
                commodities per year.
            (7) Secretary.--The term ``Secretary'' means the Secretary 
        of Agriculture.

SEC. 4. PROHIBITIONS AGAINST UNFAIR PRACTICES IN TRANSACTIONS INVOLVING 
              AGRICULTURAL COMMODITIES.

    (a) Prohibitions.--It shall be unlawful in, or in connection with, 
any transaction in interstate or foreign commerce for any dealer, 
processor, commission merchant, or broker--
            (1) to engage in or use any unfair, unreasonable, unjustly 
        discriminatory, or deceptive practice or device in the 
        marketing, receiving, purchasing, sale, or contracting for the 
        production of any agricultural commodity;
            (2) to make or give any undue or unreasonable preference or 
        advantage to any particular person or locality or subject any 
        particular person or locality to any undue or unreasonable 
        disadvantage in connection with any transaction involving any 
        agricultural commodity;
            (3) to make any false or misleading statement in connection 
        with any transaction involving any agricultural commodity that 
        is purchased or received in interstate or foreign commerce, or 
        involving any production contract, or to fail, without 
        reasonable cause, to perform any specification or duty, express 
        or implied, arising out of any undertaking in connection with 
        any such transaction or production contract;
            (4) to retaliate against or disadvantage, or to conspire to 
        retaliate against or disadvantage, any person because of 
        statements or information lawfully provided by such person to 
        any person (including to the Secretary or to a law enforcement 
        agency) regarding alleged improper actions or violations of law 
        by such dealer, processor, commission merchant, or broker 
        (unless such statements or information are determined to be 
        libelous or slanderous under applicable State law);
            (5) to include as part of any new or renewed agreement or 
        contract a right of first refusal, or to make any sale or 
        transaction contingent upon the granting of a right of first 
        refusal, until 180 days after the General Accounting Office 
        study under section 8 is complete; or
            (6) to offer different prices contemporaneously for 
        agricultural commodities of like grade and quality (except 
        commodities regulated by the Perishable Agricultural 
        Commodities Act (7 U.S.C. 181 et seq.)) unless--
                    (A) the commodity is purchased in a public market 
                through a competitive bidding process or under similar 
                conditions which provide opportunities for multiple 
                competitors to seek to acquire the commodity;
                    (B) the premium or discount reflects the actual 
                cost of acquiring a commodity prior to processing; or
                    (C) the Secretary has determined that such types of 
                offers do not have a discriminatory impact against 
                small volume producers.
    (b) Violations.--
            (1) Complaints.--Whenever the Secretary has reason to 
        believe that any dealer, processor, commission merchant, or 
        broker has violated any provision of subsection (a), the 
        Secretary shall cause a complaint in writing to be served on 
        that person or persons, stating the charges in that respect, 
        and requiring the dealer, processor, commission merchant, or 
        broker to attend and testify at a hearing to be held not sooner 
        than 30 days after the service of such complaint.
            (2) Hearing.--
                    (A) In general.--The Secretary may hold hearings, 
                sign and issue subpoenas, administer oaths, examine 
                witnesses, receive evidence, and require the attendance 
                and testimony of witnesses and the production of such 
                accounts, records, and memoranda, as the Secretary 
                deems necessary, for the determination of the existence 
                of any violation of this subsection.
                    (B) Right to hearing.--A dealer, processor, 
                commission merchant, or broker may request a hearing if 
                the dealer, processor, commission merchant, or broker 
                is subject to penalty for unfair conduct, under this 
                subsection.
                    (C) Respondents rights.--During a hearing the 
                dealer, processor, commission merchant, or broker shall 
                be given, pursuant to regulations issued by the 
                Secretary, the opportunity--
                            (i) to be informed of the evidence against 
                        such person;
                            (ii) to cross-examine witnesses; and
                            (iii) to present evidence.
                    (D) Hearing limitation.--The issues of any hearing 
                held or requested under this section shall be limited 
                in scope to matters directly related to the purpose for 
                which such hearing was held or requested.
            (3) Report of finding and penalties.--
                    (A) In general.--If, after a hearing, the Secretary 
                finds that the dealer, processor, commission merchant, 
                or broker has violated any provisions of subsection 
                (a), the Secretary shall make a report in writing which 
                states the findings of fact and includes an order 
                requiring the dealer, processor, commission merchant, 
                or broker to cease and desist from continuing such 
                violation.
                    (B) Civil penalty.--The Secretary may assess a 
                civil penalty not to exceed $100,000 for each such 
                violation of subsection (a).
            (4) Temporary injunction and finality and appealability of 
        an order.--
                    (A) Temporary injunction.--At any time after a 
                complaint is filed under paragraph (1), the court, on 
                application of the Secretary, may issue a temporary 
                injunction, restraining to the extent it deems proper, 
                the dealer, processor, commission merchant, or broker 
                and such person's officers, directors, agents, and 
                employees from violating any of the provisions of 
                subsection (a).
                    (B) Appealability of an order.--An order issued 
                pursuant to this subsection shall be final and 
                conclusive unless within 30 days after service of the 
                order, the dealer, processor, commission merchant, or 
                broker petitions to appeal the order to the court of 
                appeals for the circuit in which such person resides or 
                has its principal place of business or the District of 
                Columbia Circuit Court of Appeals.
                    (C) Delivery of petition.--The clerk of the court 
                shall immediately cause a copy of the petition filed 
                under subparagraph (B) to be delivered to the Secretary 
                and the Secretary shall thereupon file in the court the 
                record of the proceedings under this subsection.
                    (D) Penalty for failure to obey an order.--Any 
                dealer, processor, commission merchant, or broker which 
                fails to obey any order of the Secretary issued under 
                the provisions of this section after such order or such 
                order as modified has been sustained by the court or 
                has otherwise become final, shall be fined not less 
                than $5,000 and not more than $100,000 for each 
                offense. Each day during which such failure continues 
                shall be deemed a separate offense.
            (5) Records.--
                    (A) In general.--Every dealer, processor, 
                commission merchant, and broker shall keep for a period 
                of not less than 5 years such accounts, records, and 
                memoranda (including marketing agreements, forward 
                contracts, and formula pricing arrangements) and fully 
                and correctly disclose all transactions involved in the 
                business of such person, including the true ownership 
                of the business.
                    (B) Failure to keep records or allow the secretary 
                to inspect records.--Failure to keep, or allow the 
                Secretary to inspect records as required by this 
                paragraph shall constitute an unfair practice in 
                violation of subsection (a)(1).
                    (C) Inspection of records.--The Secretary shall 
                have the right to inspect such accounts, records, and 
                memoranda (including marketing agreements, forward 
                contracts, and formula pricing arrangements) of any 
                dealer, processor, commission merchant, and broker as 
                may be material to the investigation of any alleged 
                violation of this section or for the purpose of 
                investigating the business conduct or practices of an 
                organization with respect to such dealer, processor, 
                commission merchant or broker.
    (c) Compensation for Injury.--
            (1) Establishment of the family farmer and rancher claims 
        commission.--
                    (A) In general.--The Secretary shall appoint 3 
                individuals to a commission to be known as the ``Family 
                Farmer and Rancher Claims Commission'' (in this 
                subsection referred to as the ``Commission'') to review 
                claims of family farmers and ranchers who have suffered 
                financial damages as a result of any violation of this 
                section as determined by the Secretary pursuant to 
                subsection (b)(3).
                    (B) Term of service.--The member of the Commission 
                shall serve 3-year terms which may be renewed. The 
                initial members of the Commission may be appointed for 
                a period of less than 3 years, as determined by the 
                Secretary.
            (2) Review of claims.--
                    (A) Submission of claims.--Family farmers and 
                ranchers damaged as a result of a violation of this 
                section as determined by the Secretary, pursuant to 
                subsection (c)(3) may preserve the right to claim 
                financial damages under this section by filing a claim 
                pursuant to regulations promulgated by the Secretary.
                    (B) Determination.--Based on a review of such 
                claims, the Commission shall determine the amount of 
                damages to be paid, if any, as a result of the 
                violation.
                    (C) Review.--The decisions of the Commission under 
                this paragraph shall not be subject to judicial review 
                except to determine that the amount of damages to be 
                paid is consistent with the published regulations of 
                the Secretary that establish the criteria for 
                implementing this subsection.
            (3) Funding.--
                    (A) In general.--Funds collected from civil 
                penalties pursuant to this section shall be transferred 
                to a special fund in the Treasury, shall be made 
                available to the Secretary without further 
                appropriation, and shall remain available until 
                expended to pay the expenses of the Commission and the 
                claims described in this subsection.
                    (B) Authorization of appropriation.--In addition to 
                the funds described in subparagraph (A), there are 
                authorized to be appropriated such sums as may be 
                necessary to carry out this section.
            (4) No preclusion of private claims.--By filing an action 
        under this subsection, a family farmer or rancher is not 
        precluded from bringing a cause of action against a dealer, 
        processor, commission, merchant, or broker in any court of 
        appropriate jurisdiction.
    (d) Authority of the Secretary.--Not later than 180 days after the 
date of enactment of this section, the Secretary and the Attorney 
General shall develop and implement a plan to enable, where 
appropriate, the Secretary to file civil actions, including temporary 
injunctions, to enforce orders issued by the Secretary under this Act.

SEC. 5. REPORTS OF THE SECRETARY ON POTENTIAL UNFAIR PRACTICES.

    (a) Filing Premerger Notices With the Secretary.--No dealer, 
processor, commission merchant, broker, operator of a warehouse of 
agricultural commodities, or other agricultural related business shall 
merge or acquire, directly or indirectly, any voting securities or 
assets of any other dealer, processor, commission merchant, broker, 
operator of a warehouse of agricultural commodities, or other 
agricultural related business unless both persons (or in the case of a 
tender offer, the acquiring person) file notification pursuant to rules 
promulgated by the Secretary if--
            (1) any voting securities or assets of the dealer, 
        processor, commission merchant, broker, operator of a warehouse 
        of agricultural commodities or other agricultural related 
        business with annual net sales or total assets of $10,000,000 
or more are being acquired by a dealer, processor, commission merchant, 
broker, or operator of a warehouse of agricultural commodities, or 
other agricultural related business which has total assets or annual 
net sales of $100,000,000 or more; and
            (2) any voting securities or assets of a dealer, processor, 
        commission merchant, broker, operator of a warehouse of 
        agricultural commodities, or other agricultural related 
        business with annual net sales or total assets of $100,000,000 
        or more are being acquired by any dealer, processor, commission 
        merchant, broker, operator of a warehouse of agricultural 
        commodities, or agriculture related business with annual net 
        sales or total assets of $10,000,000 or more and as a result of 
        such acquisition, if the acquiring person would hold--
                    (A) 15 percent or more of the voting securities or 
                assets of the acquired person; or
                    (B) an aggregate total amount of the voting 
                securities and assets of the acquired person in excess 
                of $15,000,000.
    (b) Review of the Secretary.--
            (1) In general.--Except as provided in paragraph (2), the 
        Secretary may conduct a review of any merger or acquisition 
        described in subsection (a).
            (2) Exception.--The Secretary shall conduct a review of any 
        merger or acquisition described in subsection (a) upon a 
        request from a member of Congress.
    (c) Access to Records.--The Secretary may request any information 
including any testimony, documentary material, or related information 
from a dealer, processor, commission merchant, broker, or operator of a 
warehouse of agricultural commodities, or other agricultural related 
business, pertaining to any merger or acquisition of any agriculture 
related business.
    (d) Purpose of Review.--
            (1) Findings.--The review described in subsection (a) shall 
        make findings whether the merger or acquisition could--
                    (A) be significantly detrimental to the present or 
                future viability of family farms or ranches or rural 
                communities in the areas affected by the merger or 
                acquisition, pursuant to standards established by the 
                Secretary; or
                    (B) lead to a violation of section 4(a) of this 
                Act.
            (2) Remedies.--The review may include a determination of 
        possible remedies regarding how the parties of the merger or 
        acquisition may take steps to modify their operations to 
        address the findings described in paragraph (1).
    (e) Report of Review.--
            (1) Preliminary report.--After conducting the review 
        described in this section, the Secretary shall issue a 
        preliminary report to the parties of the merger or acquisition 
        and the Attorney General or the Federal Trade Commission, as 
        appropriate, which shall include findings and any remedies 
        described in subsection (d)(2).
            (2) Final report.--After affording the parties described in 
        paragraph (1) an opportunity for a hearing regarding the 
        findings and any proposed remedies in the preliminary report, 
        the Secretary shall issue a final report to the President and 
        Attorney General or the Federal Trade Commission, as 
        appropriate, with respect to the merger or acquisition.
    (f) Implementation of the Report.--Not later than 120 days after 
the issuance of a final report described in subsection (e), the parties 
of the merger or acquisition affected by such report shall make changes 
to their operations or structure to comply with the findings and 
implement any suggested remedy or any agreed upon alternative remedy 
and shall file a response demonstrating such compliance or 
implementation.
    (g) Confidentiality of Information.--Information used by the 
Secretary to conduct the review pursuant to this section provided by a 
party of the merger or acquisition under review or by a government 
agency shall be treated by the Secretary as confidential information 
pursuant to section 1770 of the Food Security Act of 1985 (7 U.S.C. 
2276), except that the Secretary may share any information with the 
Attorney General, the Federal Trade Commission, and a party seeking a 
hearing pursuant to subsection (e)(2) with respect to information 
relating to such party. The report issued under subsection (e) shall be 
available to the public consistent with the confidentiality provisions 
of this subsection.
    (h) Penalties.--
            (1) In general.--After affording the parties an opportunity 
        for a hearing, the Secretary may assess a civil penalty not to 
        exceed $300,000 for the failure of a person to comply with the 
        requirements of subsections (a) and (f). Such hearing shall be 
        limited to the issue of the amount of the civil penalty.
            (2) Failure to follow an order.--If after being assessed a 
        civil penalty in accordance with paragraph (1) a person 
        continues to fail to meet the applicable requirements of 
        subsections (a) and (f), the Secretary may, after affording the 
        parties an opportunity for a hearing, assess a further civil 
        penalty not to exceed $100,000 for each day such person 
        continues such violation. Such hearing shall be limited to the 
        issue of the additional civil penalty assessed under this 
        paragraph.

SEC. 6. PLAIN LANGUAGE AND DISCLOSURE REQUIREMENTS FOR CONTRACTS.

    (a) In General.--Any contract between a family farmer or rancher 
and a dealer, processor, commission merchant, broker, operator of a 
warehouse of agricultural commodities, or other agricultural related 
business shall--
            (1) be written in a clear and coherent manner using words 
        with common and everyday meanings and shall be appropriately 
        divided and captioned by various sections;
            (2) disclose in a manner consistent with paragraph (1)--
                    (A) contract duration;
                    (B) contract termination;
                    (C) renegotiation standards;
                    (D) responsibility for environmental damage;
                    (E) factors to be used in determining performance 
                payments;
                    (F) which parties shall be responsible for 
                obtaining and complying with necessary local, State, 
                and Federal government permits; and
                    (G) any other contract terms the Secretary 
                determines is appropriate for disclosure; and
            (3) not contain a confidentiality requirement barring a 
        party of a contract from sharing terms of such contract 
        (excluding trade secrets as applied in the Freedom of 
        Information Act (5 U.S.C. 552 et seq.)) for the purposes of 
        obtaining legal or financial advice or for the purpose of 
        responding to a request from Federal or State agencies.
    (b) Penalties.--
            (1) In general.--After affording the parties an opportunity 
        for a hearing, the Secretary may assess a civil penalty not to 
        exceed $100,000 for the failure of a person to comply with the 
        requirements of this section. Such hearing shall be limited to 
        the issue of the amount of the civil penalty.
            (2) Failure to follow an order.--If after being assessed a 
        civil penalty in accordance with paragraph (1), a person 
        continues to fail to meet the applicable requirements of this 
        section, the Secretary may, after affording the parties an 
        opportunity for a hearing, assess a further civil penalty not 
        to exceed $100,000 for each day such person continues such 
        violation. Such hearing shall be limited to the issue of the 
        amount of the additional civil penalty assessed under this 
        paragraph.
    (c) Implementation.--The requirements imposed by this section shall 
be applicable to contracts entered into or renewed 60 days or 
subsequently after the date of enactment of this Act.

SEC. 7. REPORT ON CORPORATE STRUCTURE.

    (a) In General.--A dealer, processor, commission merchant, or 
broker with annual sales in excess of $100,000,000 shall annually file 
with the Secretary, a report which describes, with respect to both 
domestic and foreign activities; the strategic alliances; ownership in 
other agribusiness firms or agribusiness-related firms; joint ventures; 
subsidiaries; brand names; and interlocking boards of directors with 
other corporations, representatives, and agents that lobby Congress on 
behalf of such dealer, processor, commission merchant, or broker, as 
determined by the Secretary. This subsection shall not be construed to 
apply to contracts.
    (b) Penalties.--
            (1) In general.--After affording the parties an opportunity 
        for a hearing, the Secretary may assess a civil penalty not to 
        exceed $100,000 for the failure of a person to comply with the 
        requirements of this section. Such a hearing shall be limited 
        to the issue of the amount of the civil penalty
            (2) Failure to follow an order.--If after being assessed a 
        civil penalty in accordance with paragraph (1) a person 
        continues to fail to meet the applicable requirements of this 
        section, the Secretary may, after affording the parties an 
        opportunity for a hearing, assess a further civil penalty not 
        to exceed $100,000 for each day such person continues such 
        violation. Such hearing shall be limited to the amount of the 
        additional civil penalty assessed under this paragraph.

SEC. 8. MANDATORY FUNDING FOR STAFF.

    Out of the funds in the Treasury not otherwise appropriated, the 
Secretary of Treasury shall provide to the Secretary of Agriculture 
$7,000,000 in each of fiscal years 2002 through 2006, to hire, train, 
and provide for additional staff to carry out additional 
responsibilities under this Act, including a Special Counsel on Fair 
Markets and Rural Opportunity, additional attorneys for the Office of 
General Counsel, investigators, economists, and support staff. Such 
sums shall be made available to the Secretary without further 
appropriation and shall be in addition to funds already made available 
to the Secretary for the purposes of this section.

SEC. 9. GENERAL ACCOUNTING OFFICE STUDY.

    The Comptroller General of the United States, in consultation with 
the Attorney General, the Secretary, the Federal Trade Commission, the 
National Association of Attorney's General, and others, shall--
            (1) study competition in the domestic farm economy with a 
        special focus on protecting family farms and ranches and rural 
        communities and the potential for monopsonistic and 
        oligopsonistic effects nationally and regionally; and
            (2) provide a report to the appropriate committees of 
        Congress not later than 1 year after the date of enactment of 
        this Act on--
                    (A) the correlation between increases in the gap 
                between retail consumer food prices and the prices paid 
                to farmers and ranchers and any increases in 
                concentration among processors, manufacturers, or other 
                firms that buy from farmers and ranchers;
                    (B) the extent to which the use of formula pricing, 
                marketing agreements, forward contracting, and 
                production contracts tend to give processors, 
                agribusinesses, and other buyers of agricultural 
                commodities unreasonable market power over their 
                producer/suppliers in the local markets;
                    (C) whether the granting of process patents 
                relating to biotechnology research affecting 
                agriculture during the past 20 years has tended to 
                overly restrict related biotechnology research or has 
                tended to overly limit competition in the biotechnology 
                industries that affect agriculture in a manner that is 
                contrary to the public interest, or could do either in 
                the future;
                    (D) whether acquisitions of companies that own 
                biotechnology patents and seed patents by multinational 
                companies have the potential for reducing competition 
                in the United States and unduly increasing the market 
                power of such multinational companies;
                    (E) whether existing processors or agribusiness 
                have disproportionate market power and if competition 
                could be increased if such processors or agribusiness 
                were required to divest assets to assure that they do 
                not exert this disproportionate market power over local 
                markets;
                    (F) the extent of increase in concentration in milk 
                processing, procurement and handling, and the potential 
                risks to the economic well-being of dairy farmers, and 
                to the National School Lunch program, and other Federal 
                nutrition programs of that increase in concentration;
                    (G) the impact of mergers, acquisitions, and joint 
                ventures among dairy cooperatives on dairy farmers, 
                including impacts on both members and nonmembers of the 
                merging cooperatives;
                    (H) the impact of the significant increase in the 
                use of stock as the primary means of effectuating 
                mergers and acquisitions by large companies;
                    (I) the increase in the number and size of mergers 
                or acquisitions in the United States and whether some 
                of such mergers or acquisitions would have taken place 
                if the merger or acquisition had to be consummated 
                primarily with cash, other assets, or borrowing; and
                    (J) whether agricultural producers typically appear 
                to derive any benefits (such as higher prices for their 
                products or any other advantages) from right-of-first-
                refusal provisions contained in purchase contracts or 
                other deals with agribusiness purchasers of such 
                products.

SEC. 10. AUTHORITY TO PROMULGATE REGULATIONS.

    The Secretary of Agriculture shall have the authority to promulgate 
regulations to carry out the responsibilities of the Secretary under 
this Act.
                                 <all>