[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[S. 3243 Introduced in Senate (IS)]







106th CONGRESS
  2d Session
                                S. 3243

  To enhance fair and open competition in the production and sale of 
                       agricultural commodities.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

           October 26, (legislative day, September 22), 2000

Mr. Mr. Harkin introduced the following bill; which was read twice and 
   referred to the Committee on Agriculture, Nutrition, and Forestry

_______________________________________________________________________

                                 A BILL


 
  To enhance fair and open competition in the production and sale of 
                       agricultural commodities.

    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 ``Agricultural 
Producer Protection Act of 2000''.
    (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.
               TITLE I--AGRICULTURAL PRODUCER PROTECTIONS

Sec. 101. Definitions.
Sec. 102. Applicability to production contracts.
Sec. 103. Obligation of good faith.
Sec. 104. Disclosure of risks and readability requirements under 
                            agricultural contracts.
Sec. 105. Right of contract producers to cancel production contracts.
Sec. 106. Prohibition of confidentiality provisions. 
Sec. 107. Production contract lien.
Sec. 108. Production contracts involving investment requirements. 
Sec. 109. Prohibitions against unfair practices involving agricultural 
                            contracts. 
Sec. 110. Violations.
Sec. 111. Private cause of action.
Sec. 112. Prohibition of waivers.
Sec. 113. Mediation.
Sec. 114. Relationship to State law.
Sec. 115. Regulations.
Sec. 116. Applicability.
                 TITLE II--AGRICULTURAL FAIR PRACTICES

Sec. 201. Agricultural fair practices.
            TITLE III--INVESTIGATION OF LIVE POULTRY DEALERS

Sec. 301. Investigation of live poultry dealers.

SEC. 2. FINDINGS AND PURPOSES.

    (a) Findings.--Congress finds that--
            (1)(A) while the market basket of food has increased in 
        retail price by only 3 percent since 1984, the farm value of 
        the market basket has decreased 38 percent;
            (B) the farm-to-wholesale price spreads for agriculture 
        commodities have significantly widened in the last few years, 
        with the price spread for beef increasing by 23.6 percent, and 
        the price spread for pork increasing by 52.1 percent, in the 
        past 5 years; and
            (C) most economists agree that widening price spreads are 
        an indication that agricultural processors are exerting their 
        raw economic power to maximize profits at the expense of 
        agricultural producers of the United States by paying lower 
        prices for agricultural commodities;
            (2) the Secretary of Agriculture has concluded that 
        concentration in the meat packing industry has increased 
        markedly over the last 2 decades, estimating that the top 4 
        meat packing firms control over 81 percent of steer and heifer 
        slaughter, over 56 percent of hog slaughter, and over 70 
        percent of sheep slaughter;
            (3) in the grain industry, the Secretary reports that the 
        top 4 firms control 56 percent of flour milling, 73 percent of 
        wet corn milling, 71 percent of soybean milling, and 62 percent 
        of cotton seed oil milling;
            (4)(A) agricultural producers have fewer options when 
        marketing agricultural commodities because, as data of the 
        Secretary indicate, the number of slaughtering plants for 
        cattle, hogs, and sheep continues to decline as a result 
        consolidation; and
            (B) the loss of marketing options exacerbates the disparity 
        in bargaining power between agricultural producers and large 
        agribusinesses;
            (5) increasing numbers of family farmers produce 
        agricultural commodities and provide services under 
        agricultural contract arrangements with processing firms or 
        handlers for fruits and vegetables, turkeys, chickens, hogs, 
        beef, milk, popcorn, and genetically engineered plants and 
        animals;
            (6)(A) the rapid increase in the use of agricultural 
        contracts by large agribusinesses has dramatically increased 
        vertical integration in United States agriculture; and
            (B) this is a concern for agricultural producers because of 
        the huge disparity in bargaining power between agricultural 
        producers and contract companies that can result in the unfair 
        shifting of economic risk to agricultural producers, unfair 
        contract terms, anticompetitive behavior, and retaliation;
            (7) transparent, freely accessible, and competitive markets 
        are being supplanted by transfer prices set within vertically 
        integrated firms and by the increasing use of private 
        agricultural contracts;
            (8) efforts by agricultural producers to advance their own 
        interests through agricultural cooperatives have been thwarted 
        by processing firms and handlers that threaten to terminate 
        agricultural contracts with association members, threaten to 
        move out of their State, or manipulate the incomes of 
        association members to disastrously low levels; and
            (9)(A) because agricultural products are produced, and 
        agricultural services are provided, by numerous individual 
        agricultural producers, their ability to market products or 
        services and to bargain effectively for fair prices and terms 
        of sale of products or services are adversely affected unless 
        the agricultural producers are free to join together in 
        agricultural cooperatives as authorized by law; and
            (B) interference with the right of agricultural producers 
        to join together in agricultural cooperatives, and the failure 
        of a handler of agricultural products to bargain in good faith 
        with an agricultural cooperative as the representative and 
        agent of the agricultural producers, are contrary to the public 
        interest and adversely affect the free and orderly flow of 
        goods in interstate and foreign commerce.
    (b) Purposes.--The purposes of this Act are--
            (1) to enhance fair and open competition in the production 
        and sale of agricultural commodities;
            (2) to permit the Secretary to provide reasonable oversight 
        of agricultural contracts in order to promote meaningful 
        competition in agriculture; and
            (3) to define mutual obligations for bargaining with 
        respect to the production, sale, and marketing of agricultural 
        products and services.

               TITLE I--AGRICULTURAL PRODUCER PROTECTIONS

SEC. 101. DEFINITIONS.

    In this title:
            (1) Active contractor.--The term ``active contractor'' 
        means a person that owns an agricultural commodity that is 
        produced by a contract producer at the contract operation of 
        the contract producer in accordance with a production contract.
            (2) 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).
            (3) Agricultural contract.--The term ``agricultural 
        contract'' means a marketing contract or a production contract.
            (4) 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 entitled ``An 
        Act to authorize association of producers of agricultural 
        products'' (commonly known as the ``Capper-Volstead Act'') (7 
        U.S.C. 291 et seq).
            (5) Animal feeding operation.--
                    (A) In general.--The term ``animal feeding 
                operation'' means a lot, corral, building, or other 
                area in which livestock are confined and fed.
                    (B) Exclusion.--The term ``animal feeding 
                operation'' does not include a livestock market.
            (6) Capital investment.--The term ``capital investment'' 
        means an investment in--
                    (A) a structure, such as a building or manure 
                storage structure; or
                    (B) machinery or equipment associated with 
                producing an agricultural commodity that has a useful 
                life of more than 1 year.
            (7) Confinement feeding operation.--The term ``confinement 
        feeding operation'' means an animal feeding operation in which 
        livestock are confined in an area that is totally roofed.
            (8) Contract crop field.--The term ``contract crop field'' 
        means farmland where a crop is produced under a production 
        contract by a contract producer that owns or leases the 
        farmland.
            (9) Contract input.--
                    (A) In general.--The term ``contract input'' means 
                an agricultural commodity or an organic or synthetic 
                substance or compound that is used to produce an 
                agricultural commodity.
                    (B) Inclusions.--The term ``contract input'' 
                includes livestock, plants, agricultural seeds, semen 
                or eggs for breeding stock, fertilizers, soil 
                conditioners, and pesticides.
            (10) Contract livestock facility.--
                    (A) In general.--The term ``contract livestock 
                facility'' means an animal feeding operation in which 
                livestock or raw milk is produced under a production 
                contract by a contract producer that owns or leases the 
                animal feeding operation.
                    (B) Inclusions.--The term ``contract livestock 
                facility'' includes--
                            (i) a confinement feeding operation;
                            (ii) an open feedlot; and
                            (iii) an area--
                                    (I) that is used for the raising of 
                                crops or other vegetation; and
                                    (II) on which livestock are--
                                            (aa) fed for slaughter; or
                                            (bb) allowed to graze or 
                                        feed.
            (11) Contract operation.--The term ``contract operation'' 
        means a contract livestock facility or a contract crop field.
            (12) Contract producer.--The term ``contract producer'' 
        means a producer that holds a legal interest in a contract 
        operation and that produces an agricultural commodity under a 
        production contract.
            (13) Contractor.--The term ``contractor'' means a person 
        that is an active contractor or a passive contractor.
            (14) Crop.--The term ``crop'' means a plant used for food, 
        feed, fiber, oil, a pharmaceutical or nutriceutical purpose, or 
        seed.
            (15) Farmland.--The term ``farmland'' means agricultural 
        land that is suitable for use in farming.
            (16) Investment requirement.--The term ``investment 
        requirement'' means a provision in a production contract that 
        requires a contract producer to make a capital investment 
        associated with producing an agricultural commodity subject to 
        the production contract.
            (17) Livestock.--The term ``livestock'' means beef cattle, 
        dairy cattle, swine, sheep, or poultry.
            (18) Marketing contract.--The term ``marketing contract'' 
        means an oral or written agreement between a processor and a 
        producer for the purchase of an agricultural commodity grown or 
        raised by the producer.
            (19) Open feedlot.--The term ``open feedlot'' means an 
        unroofed or partially roofed animal feeding operation in which 
        no crop, vegetation, or forage growth or residue cover is 
        maintained during the period when livestock are confined in the 
        animal feeding operation.
            (20) Passive contractor.--The term ``passive contractor'' 
        means a person that--
                    (A) furnishes a management service to a contract 
                producer; and
                    (B) does not own an agricultural commodity that is 
                produced by the contract producer at the contract 
                operation of the contract producer under a production 
                contract.
            (21) Processor.--
                    (A) In general.--The term ``processor'' means--
                            (i) any person (other than an agricultural 
                        cooperative) engaged in the business of 
                        handling, preparing, or manufacturing 
                        (including slaughtering) an agricultural 
                        commodity or the products of an agricultural 
                        commodity for sale or marketing in interstate 
                        or foreign commerce for human consumption; and
                            (ii) an agricultural cooperative that 
                        handles, prepares, or manufactures (including 
                        slaughtering) agricultural commodities of its 
                        members' own production.
                    (B) Exclusions.--The term ``processor'' does not 
                include--
                            (i) any person (other than an agricultural 
                        cooperative) with respect to the handling, 
                        preparing, or manufacturing (including 
                        slaughtering) of an agricultural commodity that 
                        was produced by the person if the gross revenue 
                        derived by the person from the sales or 
                        marketing of the agricultural commodity is less 
                        than $10,000,000 per year; and
                            (ii) any agricultural cooperative that 
                        handles, prepares, or manufactures (including 
                        slaughtering) an agricultural commodity if the 
                        gross revenue derived by the person from the 
                        sales or marketing of the agricultural 
                        commodity is less than $1,000,000 per year.
            (22) Produce.--The term ``produce'' means--
                    (A) to provide feed or services relating to the 
                care and feeding of livestock, including milking dairy 
                cattle and storing raw milk; and
                    (B) to provide for planting, raising, harvesting, 
                and storing a crop, including preparing soil for 
                planting and applying a fertilizer, soil conditioner, 
                or pesticide to a crop.
            (23) Producer.--
                    (A) In general.--The term ``producer'' means a 
                person that produces an agricultural commodity.
                    (B) Exclusions.--The term ``producer'' does not 
                include--
                            (i) a commercial fertilizer or pesticide 
                        applicator;
                            (ii) a feed supplier; or
                            (iii) a veterinarian.
            (24) Producer right.--The term ``producer right'' means--
                    (A) the right of a producer--
                            (i) to enter into a membership agreement or 
                        marketing contract with an agricultural 
                        cooperative, a processor, or another producer; 
                        and
                            (ii) to exercise contractual rights under 
                        the membership agreement or marketing contract;
                    (B) the right of a producer to lawfully provide 
                statements or information to the Secretary, a Federal 
                or State law enforcement agency, or other entity or 
                person regarding alleged improper actions or violations 
                of law by a contractor or processor under this title, 
                unless the statements or information are determined to 
                be libelous or slanderous under applicable State law;
                    (C) the right of a contract producer to cancel a 
                production contract in accordance with section 105;
                    (D) the right of a producer to disclose the terms 
                of an agricultural contract under section 106;
                    (E) the right of a producer to file, continue, 
                terminate, or enforce a lien under section 107; and
                    (F) the right of a producer to enforce other 
                protections provided by this title or other Federal or 
                State law (including regulations).
            (25) Production contract.--The term ``production contract'' 
        means an oral or written agreement that provides for--
                    (A) the production of an agricultural commodity by 
                a contract producer; or
                    (B) the provision of a management service relating 
                to the production of an agricultural commodity by a 
                contract producer.
            (26) Secretary.--The term ``Secretary'' means the Secretary 
        of Agriculture.

SEC. 102. APPLICABILITY TO PRODUCTION CONTRACTS.

    This title applies to --
            (1) a production contract between an active contractor and 
        a contract producer for the production of an agricultural 
        commodity;
            (2) a production contract between an active contractor and 
        a passive contractor for the provision of a management service 
        to a contract producer in the production of an agricultural 
        commodity; and
            (3) a production contract between a passive contractor and 
        a contract producer if--
                    (A) the production contract provides for a 
                management service furnished by the passive contractor 
                to the contract producer in the production of an 
                agricultural commodity; and
                    (B) the passive contractor has a contractual 
                relationship with the active contractor involving the 
                production of the agricultural commodity.

SEC. 103. OBLIGATION OF GOOD FAITH.

    An agricultural contract shall carry an obligation of good faith 
(as defined in applicable State law provisions of the Uniform 
Commercial Code) on all parties to the agricultural contract with 
respect to the performance and enforcement of the agricultural 
contract.

SEC. 104. DISCLOSURE OF RISKS AND READABILITY REQUIREMENTS UNDER 
              AGRICULTURAL CONTRACTS.

    (a) Readability and Understandability.--
            (1) In general.--An agricultural contract shall be readable 
        and understandable, in that the agricultural contract--
                    (A) is printed in legible type;
                    (B) is appropriately divided into captioned 
                sections; and
                    (C) is written in clear and coherent language using 
                words and grammar that are understandable by a person 
                of average intelligence, education, and experience 
                within the agricultural industry.
            (2) Effect.--Paragraph (1) does not preclude the use of--
                    (A) a particular word, phrase, provision, or form 
                of agreement that is specifically required, 
                recommended, or endorsed by a Federal or State law 
                (including a regulation); or
                    (B) a technical term that is used to describe the 
                service or property that is the subject of the 
                agricultural contract, if the term is customarily used 
                by producers in the ordinary course of business in 
                connection with the service or property described.
    (b) Disclosure Statement Requirement.--An agricultural contract 
shall--
            (1) be accompanied by a clear written disclosure statement 
        describing the material risks faced by the producer if the 
        producer enters into the agricultural contract; and
            (2) disclose (in a manner consistent with subsection (a)), 
        provisions of the agricultural contract relating to--
                    (A) duration;
                    (B) termination;
                    (C) renegotiation standards;
                    (D) responsibility for environmental damage;
                    (E) factors to be used in determining payment;
                    (F) responsibility for obtaining and complying with 
                Federal, State, and local permits;
                    (G) in the case of a production contract, the right 
                of the producer to cancel the production contract in 
                accordance with section 105; and
                    (H) any other terms that the Secretary determines 
                are appropriate for disclosure.
    (c) Cover Sheet Requirement.--An agricultural contract entered 
into, amended, or renewed after the date of enactment of this Act shall 
contain as the first page, or first page of text if it is preceded by a 
title page, a cover sheet that complies with subsection (a) and 
contains the following:
            (1) A brief statement that the agricultural contract is a 
        legal contract between the parties to the agricultural 
        contract.
            (2) The following statement: ``READ YOUR CONTRACT 
        CAREFULLY. This cover sheet provides only a brief summary of 
        your contract. This cover sheet is not the contract, and only 
        the terms of the actual contract are legally binding. The 
        contract itself sets forth, in detail, the rights and 
        obligations of both you and the contractor or processor. IT IS 
        THEREFORE IMPORTANT THAT YOU READ YOUR CONTRACT CAREFULLY.''.
            (3) A written disclosure of risks in accordance with 
        subsection (b).
            (4) In the case of a production contract, a statement 
        describing, in plain language, the right of the producer to 
        cancel the production contract in accordance with section 105.
            (5) An index of the major provisions of the agricultural 
        contract and the pages on which the provisions appear, 
        including--
                    (A) the name of each party to the agricultural 
                contract;
                    (B) the definitions section of the agricultural 
                contract;
                    (C) the provisions governing termination, 
                cancellation, renewal, and amendment of the 
                agricultural contract by either party;
                    (D) the duties and obligations of each party; and
                    (E) provisions subject to change in the 
                agricultural contract.
    (d) Review by Secretary.--
            (1) Submission to secretary.--A contractor or processor may 
        submit an agricultural contract to the Secretary for review to 
        determine whether the agricultural contract complies with this 
        section.
            (2) Action by secretary.--The Secretary shall--
                    (A) in determining whether an agricultural contract 
                or cover sheet is readable, in accordance with 
                subsection (a), consider--
                            (i) the simplicity of the sentence 
                        structure;
                            (ii) the extent to which commonly used and 
                        understood words are employed;
                            (iii) the extent to which esoteric legal 
                        terms are avoided;
                            (iv) the extent to which references to 
                        other sections or provisions of the 
                        agricultural contract are minimized;
                            (v) the extent to which clear definitions 
                        are used; and
                            (vi) any additional factors relevant to the 
                        readability or understandability of the 
                        agricultural contract; and
                    (B) after reviewing the agricultural contract--
                            (i) certify that the agricultural contract 
                        complies with this section;
                            (ii) decline to certify that the 
                        agricultural contract complies with this 
                        section and provide specific reasons for 
                        declining to certify the agricultural contract; 
                        or
                            (iii) decline to review the agricultural 
                        contract because--
                                    (I) the compliance of the 
                                agricultural contract with this section 
                                is subject to pending litigation; or
                                    (II) the agricultural contract is 
                                not subject to this section.
            (3) Judicial review.--An action of the Secretary under this 
        subsection shall not be subject to judicial review.
            (4) Certification.--
                    (A) In general.--An agricultural contract certified 
                under this subsection shall be considered to comply 
                with subsections (a), (b), and (c).
                    (B) No approval of legality or legal effect.--
                Certification of an agricultural contract under this 
                subsection shall not constitute an approval of the 
                legality or legal effect of the agricultural contract.
                    (C) Effect of approval; constructive approval.--If 
                the Secretary certifies an agricultural contract or 
                fails to respond to a request to certify an 
                agricultural within 30 days after receipt of an 
                agricultural contract--
                            (i) the agricultural contract shall be 
                        considered to be in compliance with subsections 
                        (a), (b), and (c); and
                            (ii) the remedies provided under subsection 
                        (e) and section 110 shall not be available.
            (5) Effect of disapproval.--If the Secretary disapproves 
        the certification of an agricultural contract, the agricultural 
        contract shall be void.
            (6) Effect of failure to submit agricultural contract.--The 
        failure to submit an agricultural contract to the Secretary for 
        review under this subsection shall not be considered to be a 
        lack of good faith or to raise a presumption that the 
        agricultural contract violates this section.
    (e) Remedies for Violations.--In addition to the remedies provided 
under section 110, a court reviewing an agricultural contract may 
change the terms of an agricultural contract, or limit a provision of 
an agricultural contract, to avoid an unfair result if--
            (1) the court finds--
                    (A) a material provision of the agricultural 
                contract violates subsection (a), (b), or (c);
                    (B) the violation reasonably caused the producer to 
                be substantially confused about any of the rights, 
                obligations, or remedies of any party to the 
                agricultural contract; and
                    (C) the violation has caused or is likely to cause 
                financial detriment to the producer; and
            (2) the claim is brought before the obligations of any 
        party to the agricultural contract have been fully performed.
    (f) Limitations on Producer Actions.--
            (1) In general.--A violation of this section--
                    (A) shall not entitle a producer to withhold 
                performance of an otherwise valid contractual 
                obligation when bringing a claim for relief under this 
                section; and
                    (B) is not a defense to a claim arising from the 
                breach of an agricultural contract by a producer.
            (2) Actual damages.--A producer may recover actual damages 
        caused by a violation of this section only if the violation 
        reasonably caused the producer to fail to understand a right, 
        obligation, or remedy under the agricultural contract.
    (g) Statute of Limitations.--A claim that an agricultural contract 
violates this section shall be made not later than 6 years after the 
date on which the agricultural contract is executed by the producer.

SEC. 105. RIGHT OF CONTRACT PRODUCERS TO CANCEL PRODUCTION CONTRACTS.

    (a) In General.--A contract producer may cancel a production 
contract by mailing a cancellation notice to the contractor not later 
than the later of--
            (1) the date that is 3 business days after the date on 
        which the production contract is executed; or
            (2) any cancellation date specified in the production 
        contract.
    (b) Disclosure.--A production contract shall clearly disclose--
            (1) the right of the contract producer to cancel the 
        production contract;
            (2) the method by which the contract producer may cancel 
        the production contract; and
            (3) the deadline for canceling the production contract.

SEC. 106. PROHIBITION OF CONFIDENTIALITY PROVISIONS.

    (a) Prohibition.--Any provision of an agricultural contract that 
provides that information contained in the agricultural contract (other 
than a trade secret to which section 552 of title 5, United States 
Code, applies) is confidential shall be void.
    (b) Form.--A confidentiality provision described in subsection (a) 
shall be void regardless of whether the provision is--
            (1) express or implied;
            (2) oral or written;
            (3) required or conditional; or
            (4) contained in the agricultural contract, another 
        agricultural contract, or in a related document, policy, or 
        agreement.
    (c) Other Provisions.--This section shall not affect other 
provisions of an agricultural contract or a related document, policy, 
or agreement that can be given effect without the voided provision.
    (d) Disclosure of Information.--This subsection does not require a 
party to an agricultural contract to disclose information in the 
agricultural contract to any other person.

SEC. 107. PRODUCTION CONTRACT LIEN.

    (a) In General.--In the case of a production contract that provides 
for producing an agricultural commodity by a contract producer at the 
contract operation of the contract producer, the contract producer 
shall have a lien in the amount owed to the contract producer under the 
production contract on--
            (1)(A) the agricultural commodity until the agricultural 
        commodity is sold or processed (including slaughtered) by the 
        contractor; or
            (B) the cash proceeds of the sale of the agricultural 
        commodity, including any cash provided as part of the sale; and
            (2) any property of the contractor that may be subject to a 
        security interest as provided in applicable State law 
        provisions based on section 9-102 of the Uniform Commercial 
        Code.
    (b) Lien Period.--The lien shall apply--
            (1) in the case of livestock or milk, during the period--
                    (A) beginning on the date on which the livestock 
                arrive at the contract livestock facility; and
                    (B) ending 1 year after the livestock or milk is no 
                longer under the control of the contract producer; and
            (2) in the case of a crop, during the period--
                    (A) beginning on the date on which the crop is 
                planted; and
                    (B) ending 1 year after the crop is no longer under 
                the control of the contract producer.
    (c) Filing Requirements for Preserving the Lien.--To preserve a 
lien under this section, a contract producer shall--
            (1) file with the Secretary a lien statement on a form 
        prescribed by the Secretary that includes--
                    (A) an estimate of the amount owed under the 
                production contract;
                    (B)(i) in the case of livestock or milk, the date 
                on which the livestock arrived at the contract 
                livestock facility; and
                    (ii) in the case of a crop, the date on which the 
                crop was planted;
                    (C) the estimated duration of the period when the 
                agricultural commodity will be under the control of the 
                contract producer;
                    (D) the name of the party to the production 
                contract whose agricultural commodity is produced under 
                the production contract;
                    (E) the description of the location of the contract 
                operation, by State, county, and township; and
                    (F) the printed name and signature of the person 
                filing the form;
            (2) file the lien statement not later than--
                    (A) in the case of livestock, 45 days after the 
                date on which the livestock first arrive at the 
                contract livestock facility; or
                    (B) in the case of a crop, 45 days after the date 
                on which the crop is first planted; and
            (3) pay a filing fee in an amount determined by the 
        Secretary, not to exceed $10.00.
    (d) Priority of Lien.--A lien created under this section shall be 
superior to, and have priority over, any conflicting lien or security 
interest in the agricultural commodity, including a lien or security 
interest that was perfected prior to the creation of the lien under 
this section.
    (e) Enforcement.--
            (1) Control.--Before an agricultural commodity leaves the 
        control of a contract producer, the contract producer may 
        foreclose a lien created under this section in the manner 
        provided for the foreclosure of a secured transaction under 
        applicable State law provisions based on sections 9-504, 9-506, 
        and 9-507 of the Uniform Commercial Code.
            (2) Post-control.--After an agricultural commodity leaves 
        the control of the contract producer, the contract producer may 
        enforce the lien in the manner provided under applicable State 
        law provisions based article 9 of part 5 of the Uniform 
        Commercial Code.

SEC. 108. PRODUCTION CONTRACTS INVOLVING INVESTMENT REQUIREMENTS.

    (a) Applicability.--This section applies only to a production 
contract between a contract producer and a contractor if the production 
contract requires the contract producer, together with any other 
production contract between the same parties, to make a capital 
investment of $100,000 or more.
    (b) Restrictions on Contract Termination.--Except as provided in 
subsection (d), a contractor shall not terminate or fail to renew a 
production contract until the contractor--
            (1) provides the contract producer with written notice of 
        the intention of the contractor to terminate or not renew the 
        production contract at least 90 days before the effective date 
        of the termination or nonrenewal; and
            (2) reimburses the contract producer for damages (based on 
        the value of the remaining useful life of the structures, 
        machinery, equipment, or other capital investment items) 
        incurred due to the termination, cancellation, or nonrenewal of 
        the production contract.
    (c) Breach of Investment Requirements.--
            (1) In general.--Except as provided in subsection (d), a 
        contractor shall not terminate or fail to renew a production 
        contract with a contract producer that materially breaches a 
        production contract, including the investment requirements of a 
        production contract, until--
                    (A) the contractor provides the contract producer 
                with a written notice of termination or nonrenewal, 
                including a list of complaints alleging causes for the 
                breach, at least 45 days before the effective date of 
                the termination or nonrenewal; and
                    (B) the contract producer fails to remedy each 
                cause of the breach alleged in the list of complaints 
                provided in the notice not later than 30 days after 
                receipt of the notice.
            (2) Civil actions.--An effort by a contract producer to 
        remedy a cause of an alleged breach shall not be considered to 
        be an admission of a breach in a civil action.
    (d) Exceptions.--A contractor may terminate or decline to renew a 
production contract in accordance with applicable law without notice or 
remedy as required in subsections (b) and (c) if the basis for the 
termination or nonrenewal is--
            (1) a voluntary abandonment of the contractual relationship 
        by the contract producer, such as a complete failure of the 
        performance of a contract producer under the production 
        contract; or
            (2) the conviction of a contract producer of an offense of 
        fraud or theft committed against the contractor.
    (e) Penalty.--If a contractor terminates or fails to renew a 
production contract other than as provided in this section, the 
contractor shall pay the contract producer the value of the remaining 
useful life of the structures, machinery, equipment, or other capital 
investment items.

SEC. 109. PROHIBITIONS AGAINST UNFAIR PRACTICES INVOLVING AGRICULTURAL 
              CONTRACTS.

    It shall be unlawful, in or in connection with any transaction in 
interstate or foreign commerce, for any contractor or processor to 
knowingly engage or permit any employee or agent--
            (1) to take an action to coerce, intimidate, disadvantage, 
        retaliate against, or discriminate against any producer because 
        the producer exercises, or attempts to exercise, any producer 
        right, including an action affecting--
                    (A) the execution, termination, extension, or 
                renewal of an agricultural contract;
                    (B) the treatment of a producer, which may include 
                providing discriminatory or preferential terms in an 
                agricultural contract or interpreting terms of an 
                agricultural contract in a discriminatory or 
                preferential manner, including--
                            (i) the price paid for an agricultural 
                        commodity;
                            (ii) the quality or the quantity of an 
                        agricultural commodity demanded; or
                            (iii) financing, including investment 
                        requirements;
                    (C) the grant of a reward or imposition of a 
                penalty, including the denial of reward (including a 
                financial reward or penalty that relates to a loan, 
                bonus, or inducement); or
                    (D) the quality, quantity, or delivery times of 
                contract inputs provided to the producer;
            (2) to provide false information relating to--
                    (A) a producer with whom the producer associates or 
                an association of producers or an agricultural 
                organization with which the producer is affiliated, 
                including false information relating to--
                            (i) the character of the producer; or
                            (ii) the condition of the finances or 
                        management of the association of producers or 
                        agricultural organization; or
                    (B) producer rights provided by this title or other 
                provisions of Federal or State law;
            (3) to refuse to provide a contract producer on request the 
        statistical information and data used to determine compensation 
        paid to the contract producer under a production contract, 
        including feed conversion rates, feed analyses, and origination 
        and breeder history;
            (4) to refuse to allow a contract producer or a 
        representative of the contract producer to observe, by actual 
        observation at the time of weighing, the weights and measures 
        used to determine the compensation of the contract producer 
        under a production contract;
            (5) to use the performance of any other contract producer 
        to determine the compensation of a contract producer under a 
        production contract or as the basis of the termination or 
        renewal of a production contract;
            (6) to require a contract producer to make new or 
        additional capital investments in connection with a production 
        contract that are beyond the investment requirements of the 
        production contract unless the new or additional capital 
        investments are--
                    (A) partially paid for by the contractor; or
                    (B) offset by other compensation or modifications 
                to contract terms, in a manner that the contract 
                producer agrees to in writing as constituting 
                acceptable and satisfactory consideration for the new 
                capital investment;
            (7)(A) to include as part of any new or renewed agreement 
        or contract a right of first refusal; or
            (B) to make any sale or transaction contingent on the 
        granting of a right of first refusal;
            (8) to execute an agricultural contract in violation of 
        this title; or
            (9) to execute an agricultural contract that includes a 
        waiver of any producer right or obligation of a contractor or 
        processor established under this title.

SEC. 110. VIOLATIONS.

    (a) Complaints.--If the Secretary has reason to believe (through 
investigation based on the Secretary's initiative or on petition by any 
person) that any contractor or processor has violated this title, the 
Secretary shall cause a complaint in writing to be served on the 
contractor or processor--
            (1) describing the charges involved in the violation; and
            (2) requiring the contractor or processor to attend and 
        testify at a hearing to be held not earlier than 30 days after 
        the service of the complaint.
    (b) Hearing.--
            (1) 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 considers necessary to determine whether a 
        contractor or processor has violated this title.
            (2) Right to hearing.--A contractor or processor may 
        request a hearing if the contractor or processor is subject to 
        penalty for unfair conduct under this title.
            (3) Respondents rights.--During a hearing, under 
        regulations promulgated by the Secretary, the contractor or 
        processor shall be given the opportunity--
                    (A) to be informed of the evidence against the 
                contractor or processor;
                    (B) to cross-examine witnesses; and
                    (C) to present evidence.
            (4) Hearing limitation.--The issues at any hearing held or 
        requested under this subsection shall be limited in scope to 
        matters directly related to the purpose for which the hearing 
        is held or requested.
    (c) Report of Finding and Penalties.--
            (1) In general.--If, after a hearing, the Secretary finds 
        that the contractor or processor has violated this title, the 
        Secretary shall--
                    (A) prepare a written report that--
                            (i) provides the findings of fact; and
                            (ii) includes an order requiring the 
                        contractor or processor to cease and desist 
                        from committing the violation; and
                    (B) provide the report to the contractor or 
                processor and to the affected producer.
            (2) Civil penalty.--The Secretary may assess a civil 
        penalty of not more than $100,000 for each violation of this 
        title.
    (d) Injunctions; Finality and Appealability of an Order.--
            (1) Injunctions.--At any time after a complaint is filed 
        under subsection (a), a court, on application of the Secretary, 
        may issue an injunction, restraining to the extent the court 
        considers appropriate, the contractor or processor (including 
        officers, directors, agents, and employees of the contractor or 
        processor) from violating this title.
            (2) Appealability of an order.--An order issued under this 
        section shall be final and conclusive unless, not later than 30 
        days after service of the order, the contractor or processor 
        petitions to appeal the order to--
                    (A) the United States court of appeals for the 
                circuit in which the contractor or processor resides or 
                has its principal place of business; or
                    (B) the United States Court of Appeals for the 
                District of Columbia Circuit.
            (3) Delivery of petition.--
                    (A) Copy to secretary.--The clerk of the court 
                shall cause a copy of the petition filed under 
                paragraph (2) to be delivered to the Secretary.
                    (B) Record.--The Secretary shall file in the court 
                the record of the proceedings under this section.
            (4) Penalty for failure to obey an order.--
                    (A) In general.--Any contractor or processor that 
                fails to obey an order of the Secretary issued under 
                this section after the order has become final shall be 
                fined not less than $5,000 nor more than $100,000 for 
                each offense.
                    (B) Separate offenses.--Each day during which the 
                failure continues shall be considered a separate 
                offense.
    (e) Authority of the Secretary.--Not later than 180 days after the 
date of enactment of this Act, the Secretary and the Attorney General 
shall develop and implement a plan to enable the Secretary, where 
appropriate, to bring civil actions, including petitions for temporary 
injunctions, to enforce orders issued by the Secretary under this 
title.
    (f) Limitation on Penalties.--
            (1) Good faith defense.--Notwithstanding any other 
        provision of this section, in a proceeding in which a civil 
        penalty is sought against a party for a violation of section 
        104, it shall be a defense to the claim that the party made a 
        good faith and reasonable effort to comply with this section.
            (2) Attorney's fees and costs.--Notwithstanding any other 
        provision of this section, a party that makes a good faith and 
        reasonable effort to comply with section 104 may not be 
        assessed attorney's fees or costs of investigation in an action 
        for violation of section 104.

SEC. 111. PRIVATE CAUSE OF ACTION.

    (a) In General.--Notwithstanding any action by the Secretary under 
section 110, a producer that suffers damage because of the violation of 
this title by a contractor or processor may obtain appropriate legal 
and equitable relief in a civil action in United States district court.
    (b) Attorney's Fees and Costs.--In a civil action under this 
section, the court shall award the producer that is the prevailing 
party reasonable attorney's fees and costs.
    (c) Injunctive Relief.--In a civil action under this section, the 
producer shall not be required to post a bond, prove the absence of an 
adequate remedy at law, or show the existence of special circumstances 
when seeking injunctive relief, unless the court for good cause orders 
otherwise.
    (d) Relief.--In a civil action under this section, in addition to 
damages, the court may order any form of prohibitory or mandatory 
relief that is appropriate under principles of equity, including 
issuing a temporary or permanent injunction.

SEC. 112. PROHIBITION OF WAIVERS.

    Any provision of an agricultural contract that waives a producer 
right or an obligation of a contractor or processor established by this 
title shall be void and unenforceable.

SEC. 113. MEDIATION.

    (a) Mediation.--
            (1) In general.--An agricultural contract shall provide for 
        resolution of disputes concerning the agricultural contract by 
        mediation.
            (2) Mediation by secretary or state mediation service.--If 
        there is a dispute involving an agricultural contract, either 
        party to the agricultural contract may make a written request 
        to the Secretary for mediation services by the Secretary or by 
        a designated State mediation service to facilitate resolution 
        of the dispute.
            (3) Hearing.--The parties to the agricultural contract 
        shall receive a release from the mediation services described 
        in paragraph (2) before the dispute may be heard by a court.
    (b) No Arbitration of Future Controversy.--A provision in an 
agricultural contract submitting to arbitration a future controversy 
arising between a producer and a contractor or processor shall be void.

SEC. 114. RELATIONSHIP TO STATE LAW.

    (a) In General.--This title does not invalidate any provision of 
State law dealing with the same subjects as this title, except that the 
State law may not permit any action that is prohibited by this title.
    (b) State Courts.--This title does not deprive a State court of 
jurisdiction under a State law dealing with the same subject as this 
title.

SEC. 115. REGULATIONS.

    The Secretary shall promulgate such regulations as are appropriate 
to carry out this title.

SEC. 116. APPLICABILITY.

    (a) In General.--Except as provided in subsection (b), this title 
applies to an agricultural contracts in force on or after the date of 
enactment of this Act, regardless of the date on which the agricultural 
contract is executed.
    (b) Exceptions.--Sections 104, 105, 108, 109(5), and 113(a) shall 
apply only to an agricultural contract that is executed or 
substantively amended after the date of enactment of this Act.

                 TITLE II--AGRICULTURAL FAIR PRACTICES

SEC. 201. AGRICULTURAL FAIR PRACTICES.

    The Agricultural Fair Practices Act of 1967 (7 U.S.C. 2301 et seq.) 
is amended to read as follows:

``SECTION 1. SHORT TITLE.

    ``This Act may be cited as the `Agricultural Fair Practices Act of 
1967'.

``SEC. 2. FINDINGS AND PURPOSE.

    ``(a) Findings.--Congress finds that--
            ``(1) agricultural products are produced in the United 
        States by many individual farmers and ranchers scattered 
        throughout the various States of the United States;
            ``(2) agricultural products in fresh or processed form move 
        in large part in the channels of interstate and foreign 
        commerce, and agricultural products that do not move in the 
        channels directly burden or affect interstate commerce;
            ``(3) the efficient production and marketing of 
        agricultural products by farmers and ranchers is of vital 
        concern to the welfare of farmers and ranchers and to the 
        general economy of the United States;
            ``(4) because agricultural products are produced by 
        numerous individual farmers and ranchers, the marketing and 
        bargaining position of individual farmers and ranchers will be 
        adversely affected unless farmers and ranchers are free to join 
        together voluntarily in cooperative organizations as authorized 
        by law; and
            ``(5) interference with the right described in paragraph 
        (4) is contrary to the public interest and adversely affects 
        the free and orderly flow of goods in interstate and foreign 
        commerce.
    ``(b) Purpose.--The purpose of this Act is to establish standards 
of fair practices required of handlers for dealings in agricultural 
products.

``SEC. 3. DEFINITIONS.

    ``In this Act:
            ``(1) Accredited association.--The term `accredited 
        association' means an association of producers accredited by 
        the Secretary in accordance with section 6.
            ``(2) Association of producers.--
                    ``(A) In general.--The term `association of 
                producers' means an association of producers of 
                agricultural products that engages in the marketing of 
                agricultural products or of agricultural services 
                described in paragraph (6)(B).
                    ``(B) Inclusions.--The term `association of 
                producers' includes--
                            ``(i) a cooperative association (as defined 
                        in section 15(a) of the Agricultural Marketing 
                        Act (12 U.S.C. 1141j(a)); and
                            ``(ii) an association described in the 
                        first section of the Act entitled `An Act to 
                        authorize association of producers of 
                        agricultural products' (commonly known as the 
                        `Capper-Volstead Act') (7 U.S.C. 291).
            ``(3) Bargain; bargaining.--The terms `bargain' and 
        `bargaining' refers to the performance of the mutual obligation 
        of a handler and an accredited association to meet at 
        reasonable times and for reasonable periods of time for the 
        purpose of negotiating in good faith with respect to the price, 
        terms of sale, compensation for products produced or services 
        rendered under contract, or other provisions relating to the 
        products marketed, or the services rendered, by the members of 
        the accredited association or by the accredited association as 
        agent for the members.
            ``(4) Designated handler.--The term `designated handler' 
        means a handler that is designated in accordance with section 
        6.
            ``(5) Handler.--
                    ``(A) In general.--The term `handler' means any 
                person engaged in the business or practice of--
                            ``(i) acquiring agricultural products from 
                        producers or associations of producers for 
                        processing or sale;
                            ``(ii) grading, packaging, handling, 
                        storing, or processing agricultural products 
                        received from producers or associations of 
                        producers;
                            ``(iii) contracting or negotiating 
                        contracts or other arrangements, written or 
                        oral, with or on behalf of producers or 
                        associations of producers with respect to the 
                        production or marketing of any agricultural 
                        product; or
                            ``(iv) acting as an agent or broker for a 
                        handler in the performance of any function or 
                        act described in clause (i), (ii), or (iii).
                    ``(B) Exclusions.--The term ``handler'' does not 
                include--
                            ``(i) any person (other than an 
                        agricultural cooperative) engaged in a business 
                        or practice described in subparagraph (A) if 
                        the gross revenue derived by the person from 
                        the business or activity is less than 
                        $10,000,000 per year; or
                            ``(ii) any agricultural cooperative engaged 
                        in a business or practice described in 
                        subparagraph (A) if the gross revenue derived 
                        by the person from the business or activity is 
                        less than $1,000,000 per year.
            ``(6) Producer.--
                    ``(A) In general.--The term `producer' means a 
                person engaged in the production of agricultural 
                products as a farmer, planter, rancher, dairyman, 
                poultryman, or fruit, vegetable, or nut grower.
                    ``(B) Inclusions.--The term `producer' includes a 
                person that provides labor, production management, 
                facilities, or other services for the production of an 
                agricultural product.
            ``(7) Person.--The term `person' includes an individual, 
        partnership, corporation, and association.
            ``(8) Secretary.--The term `Secretary' means the Secretary 
        of Agriculture.

``SEC. 4. PROHIBITED PRACTICES.

    ``It shall be unlawful for any handler knowingly to, or knowingly 
to permit any employee or agent to--
            ``(1) interfere with, restrain, or coerce any producer in 
        the exercise of the right of the producer to join and belong 
        to, or to refrain from joining or belonging to, an association 
        of producers, or to refuse to deal with any producer because of 
        the exercise of the right of the producer to join and belong to 
        the association;
            ``(2) discriminate against any producer with respect to 
        price, quantity, quality, or other terms of purchase, 
        acquisition, or other handling of an agricultural product 
        because of the membership of the producer in, or the contract 
        of the producer with, an association of producers;
            ``(3) coerce or intimidate any producer to enter into, 
        maintain, breach, cancel, or terminate a membership agreement 
        or marketing contract with an association of producers or a 
        contract with a handler;
            ``(4) pay or loan money, give any thing of value, or offer 
        any other inducement or reward to a producer for refusing to or 
        ceasing to belong to an association of producers;
            ``(5) make false reports about the finances, management, or 
        activities of an association of producers or handlers;
            ``(6) conspire, combine, agree, or arrange with any other 
        person to do, or aid or abet the performance of, any act made 
        unlawful by this Act;
            ``(7) refuse to bargain in good faith with an accredited 
        association, if the handler is a designated handler; or
            ``(8) dominate or interfere with the formation or 
        administration of any association of producers or to contribute 
        financial or other support to an association of producers.

``SEC. 5. BARGAINING IN GOOD FAITH.

    ``(a) Clarification of Obligation.--
            ``(1) In general.--The obligation of a designated handler 
        to bargain in good faith shall apply with respect to an 
        accredited association and the products or services for which 
        the accredited association is accredited to bargain.
            ``(2) Agreements or concessions.--The good faith bargaining 
        required between a handler and an accredited association shall 
        not require either party to agree to a proposal or to make a 
        concession.
    ``(b) Extension of Same Terms to Accredited Association.--
            ``(1) In general.--If a designated handler purchases a 
        product or service from producers under terms more favorable to 
        the producers than the terms negotiated with an accredited 
        association for the same type of product or service, the 
        handler shall offer the same terms to the accredited 
        association.
            ``(2) Violations.--Failure to extend the same terms to the 
        accredited association shall be considered to be a violation of 
        section 4(g).
            ``(3) Factors.--In comparing terms, the Secretary shall 
        consider--
                    ``(A) the stipulated purchase price;
                    ``(B) any bonuses, premiums, hauling, or loading 
                allowances;
                    ``(C) reimbursement of expenses;
                    ``(D) payment for special services of any character 
                that may be paid by the handler; and
                    ``(E) any amounts paid or agreed to be paid by the 
                handler for any designated purpose other than payment 
                of the purchase price.
    ``(c) Mediation.--The Secretary may provide mediation services with 
respect to bargaining between an accredited association and a 
designated handler at the request of the accredited association or 
designated handler.

``SEC. 6. ACCREDITATION OF ASSOCIATIONS AND DESIGNATION OF HANDLERS.

    ``(a) Accreditation Petition.--
            ``(1) In general.--An association of producers seeking 
        accreditation to bargain on behalf of producers of an 
        agricultural product or service shall submit to the Secretary a 
        petition for accreditation.
            ``(2) Content.--The petition shall--
                    ``(A) specify each agricultural product or service 
                for which the association seeks accreditation to 
                bargain on behalf of producers;
                    ``(B) designate the handlers, individually, by 
                production or marketing area, or by some other 
                appropriate general classification, with whom the 
                association seeks to be accredited to bargain; and
                    ``(C) contain such other information and documents 
                as may be required by the Secretary.
    ``(b) Notice of Petition; Proceedings.--
            ``(1) In general.--On receiving a petition under subsection 
        (a) and any supporting material, the Secretary shall provide 
        notice of the petition to all handlers designated in the 
        petition under subsection (a)(2)(B).
            ``(2) Individual handlers.--The Secretary shall provide 
        personal notice under this subsection to a handler that has 
        been designated individually.
            ``(3) General classifications.--The Secretary shall provide 
        notice through the Federal Register to handlers that have been 
        designated by production or marketing area or by some other 
        general classification.
            ``(4) Opportunity to respond.--The association of producers 
        seeking accreditation and the handlers shall have an 
        opportunity to submit written evidence, views, and arguments to 
        the Secretary.
            ``(5) Proceedings.--
                    ``(A) In general.--Except as provided in 
                subparagraph (B), the Secretary may conduct an informal 
                proceeding on the petition.
                    ``(B) Formal hearings.--The Secretary shall hold a 
                formal hearing for the reception of testimony and 
                evidence if the Secretary finds that there are 
                substantial unresolved issues of material fact.
    ``(c) Issuance of Accreditation Order.--On the petition of an 
association of producers, the Secretary may issue an order designating 
the association of producers as an accredited association for the 
purposes of this Act if the Secretary determines that--
            ``(1) under the charter documents or bylaws of the 
        association, the accredited association is owned and controlled 
        by producers;
            ``(2) the association has contracts, binding under State 
        law, with the members of the association empowering the 
        association to sell or negotiate terms of sale of the products 
        or services of the members;
            ``(3) the association represents a sufficient number of 
        producers, or the members of the association produce a 
        sufficient quantity of agricultural products or render a 
        sufficient level of services, to enable the association to 
        function as an effective agent for producers in bargaining with 
        designated handlers; and
            ``(4) the functions of the association include acting as 
        principal or agent for the members of the association in 
        negotiations with handlers for prices and other terms of trade 
        with respect to the production, sale, and marketing of products 
        or services of the members.
    ``(d) Notification of Accreditation Order.--
            ``(1) In general.--The Secretary shall notify the 
        petitioning association of producers, and each handler to be 
        designated as part of the petition, of the decision of the 
        Secretary regarding the petition and provide a concise 
        statement of the basis for the decision.
            ``(2) Other associations.--The Secretary shall provide 
        notice of an accreditation of an association to all other 
        associations that have been accredited to bargain with respect 
        to the product or service with any of the designated handlers 
        of the association.
    ``(e) Annual Report.--Each accredited association shall submit to 
the Secretary an annual report in such form and including such 
information as the Secretary by regulation may require to enable the 
Secretary to determine whether the association is meeting the standards 
for accreditation.
    ``(f) Loss of Accreditation.--
            ``(1) In general.--If the Secretary determines that an 
        accredited association has ceased to meet the standards for 
        accreditation under subsection (c), the Secretary shall--
                    ``(A) notify the association of the manner in which 
                the association is deficient in maintaining the 
                standards; and
                    ``(B) allow the association a reasonable period of 
                time to answer or correct the deficiencies.
            ``(2) Hearing.--After providing notice and a corrective 
        period in accordance with paragraph (1), if the Secretary is 
        not satisfied that the association is in compliance with 
        subsection (c), the Secretary shall--
                    ``(A) notify the association of the continued 
                deficiencies; and
                    ``(B) hold a hearing to consider the revocation of 
                accreditation.
            ``(3) Revocation.--If, based on the evidence submitted at 
        the hearing, the Secretary finds that the association has 
        ceased to maintain the standards for accreditation, the 
        Secretary shall revoke the accreditation of the association.
    ``(g) Amendment.--
            ``(1) In general.--At the option of the Secretary or on the 
        petition of an accredited association or a designated handler, 
        the Secretary may amend an accreditation order with respect to 
        the product or service specified in the accreditation order.
            ``(2) Notice.--The Secretary shall provide--
                    ``(A) notice of any proposed amendment and the 
                reasons for the amendment to all accredited 
                associations and handlers that would be directly 
                affected by the amendment; and
                    ``(B) an opportunity for a public hearing.
            ``(3) Authority.--After providing notice and an opportunity 
        for a hearing in accordance with paragraph (2), the Secretary 
        may amend the accreditation order if the Secretary finds that 
        the amendment will be conducive to more effective bargaining 
        and orderly marketing by the accredited association of the 
        product or services of the members of the accredited 
        association.

``SEC. 7. ASSIGNMENT OF ASSOCIATION DUES AND FEES.

    ``(a) In General.--A producer of an agricultural product or service 
may execute, as a clause in a sales contract or in another written 
instrument, an assignment of dues or fees to, or the deduction of a sum 
to be retained by, an association of producers authorized by contract 
to represent the producer, under which assignment a handler shall--
            ``(1) deduct a portion of the amount to be paid for 
        products or services of the producer under a growing contract; 
        and
            ``(2) pay, on behalf of the producer, the portion over to 
        the association as dues or fees or a sum to be retained by the 
        association.
    ``(b) Duty of Handler.--After a handler receives notice from a 
producer of an assignment under subsection (a), the handler shall--
            ``(1) deduct the amount authorized by the assignment from 
        the amount paid for any agricultural product sold by the 
        producer or for any service rendered under any growing 
        contract; and
            ``(2) on payment to producers for the product or service, 
        pay the amount over to the association or the assignee of the 
        association.

``SEC. 8. POWERS OF SECRETARY.

    ``(a) Records and Information.--
            ``(1) Maintenance.--The Secretary may require any person 
        covered by this Act to establish and maintain such records, 
        make such reports, and provide such other information as the 
        Secretary may reasonably require to carry out this Act.
            ``(2) Access.--The Secretary and any officer or employee of 
        the Department of Agriculture, on presentation of credentials 
and a warrant or such other order of a court as may be required by the 
Constitution--
                    ``(A) shall have a right of entry to, on, or 
                through any premises in which records required to be 
                maintained under paragraph (1) are located; and
                    ``(B) may at reasonable times have access to and 
                copy any records that any person is required to 
                maintain or that relate to any matter under this Act 
                under investigation or in question.
    ``(b) Complaints.--If the Secretary has reason to believe (whether 
through investigation or petition by any person) that any person has 
violated section 4, the Secretary shall cause a complaint to be served 
on the person--
            ``(1) stating the reasons for the alleged violation of 
        section 4; and
            ``(2) requiring the person to attend and testify at a 
        hearing to be held not earlier than 30 days after the date of 
        service of the complaint.
    ``(c) Hearing.--
            ``(1) 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 considers necessary to determine 
        whether a violation of this Act has occurred.
            ``(2) Right to hearing.--A person may request a hearing if 
        the person is subject to a penalty under this Act.
            ``(3) Respondents' rights.--During a hearing, the person 
        complained of shall be given, in accordance with regulations 
        promulgated by the Secretary, the opportunity--
                    ``(A) to be informed of the evidence against the 
                person;
                    ``(B) to cross-examine witnesses; and
                    ``(C) to present evidence.
            ``(4) Hearing limitation.--The issues at any hearing held 
        or requested under this section shall be limited in scope to 
        matters directly related to the purpose for which the hearing 
        was held or requested.
    ``(d) Report of Finding and Penalties.--
            ``(1) In general.--If, after a hearing, the Secretary finds 
        that a person has violated section 4, the Secretary shall make, 
        and provide to the person, a written report that states the 
        findings of fact and includes an order requiring the person to 
        cease and desist from committing the violation.
            ``(2) Civil penalty.--The Secretary may assess a civil 
        penalty not to exceed $100,000 for each violation of section 4.
    ``(e) Injunctions; Finality and Appealability of an Order.--
            ``(1) Injunctions.--At any time after a complaint is served 
        on a person under subsection (b), the court, on application of 
        the Secretary, may issue an injunction, restraining to the 
        extent the court determines to be appropriate, the person and 
        the officers, directors, agents, and employees of the person 
        from violating section 4 and other provisions of this Act.
            ``(2) Appealability of an order.--An order issued under 
        this section shall be final and conclusive unless, within 30 
        days after service of the order, the affected handler petitions 
        to appeal the order to the United States court of appeals for 
        the circuit in which the handler resides or has its principal 
        place of business or the United States Court of Appeals for the 
        District of Columbia Circuit.
            ``(3) Delivery of petition.--
                    ``(A) In general.--The clerk of the court shall 
                immediately cause a copy of any petition filed under 
                paragraph (2) to be delivered to the Secretary.
                    ``(B) Record.--On receipt of the petition, the 
                Secretary shall file in the court the record of the 
                proceedings under this section.
            ``(4) Penalty for failure to obey an order.--
                    ``(A) In general.--Any person that fails to obey an 
                order of the Secretary issued under this section after 
                the order becomes final shall be fined not less than 
                $5,000 and not more than $100,000 for each offense.
                    ``(B) Separate offenses.--Each day during which the 
                failure continues shall be considered to be a separate 
                offense.
            ``(5) 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, when appropriate, the Secretary to bring civil actions, 
        including actions for an injunction, to enforce orders issued 
        by the Secretary under this Act.

``SEC. 9. ENFORCEMENT.

    ``(a) Civil Actions by Aggrieved Persons.--
            ``(1) Preventive relief.--Whenever any handler has engaged 
        or there are reasonable grounds to believe that any handler is 
        about to engage in any act or practice prohibited by section 4, 
        a civil action for preventive relief, including an application 
        for a permanent or temporary injunction, restraining order, or 
        other order, may be instituted by the person aggrieved.
            ``(2) Attorney's fees.--In any action commenced under 
        paragraph (1), the court may allow the prevailing party a 
        reasonable attorney's fee as part of the costs.
            ``(3) Security.--The court may provide that no restraining 
        order or preliminary injunction shall issue unless security is 
        provided by the applicant, in such sum as the court determines 
        to be appropriate, for the payment of such costs and damages as 
        may be incurred or suffered by any party that is found to have 
        been wrongfully enjoined or restrained.
    ``(b) Civil Actions by Injured Persons.--
            ``(1) In general.--Any person injured in the business or 
        property of the person by reason of any violation of, or 
        combination or conspiracy to violate, section 4 may--
                    ``(A) sue for the violation in the appropriate 
                United States district court without respect to the 
                amount in controversy; and
                    ``(B) recover damages sustained.
            ``(2) Attorney's fees.--In any action commenced under 
        paragraph (1), the court may allow the prevailing party a 
        reasonable attorney's fee as part of the costs.
            ``(3) Limitation on actions.--Any action to enforce any 
        cause of action under this subsection shall be barred unless 
        commenced within 2 years after the cause of action occurred.
    ``(c) Jurisdiction of District Courts.--
            ``(1) In general.--A United States district court shall 
        have jurisdiction over an action brought under this section.
            ``(2) Limitations.--No action may be commenced under 
        subsection (a) or (b)--
                    ``(A) prior to 60 days after the plaintiff has 
                given notice of the alleged violation to the Secretary 
                through a petition under section 8(b); or
                    ``(B) if the Secretary has commenced and is 
                diligently prosecuting an action (administrative or 
                judicial) dealing with the same violation to require 
                compliance with the Act.
    ``(d) Judicial Review.--An order of the Secretary with respect to 
which review could have been obtained under section 8(e)(2) shall not 
be subject to judicial review in any proceeding for enforcement under 
this section.

``SEC. 10. PREEMPTION.

    ``(a) In General.--This Act shall not invalidate the provisions of 
any State law dealing with the same subject as this Act, except that 
the State law may not permit any action that is prohibited by this Act.
    ``(b) State Courts.--This Act shall not deprive a State court of 
jurisdiction under a State law dealing with the same subject as this 
Act.''.

            TITLE III--INVESTIGATION OF LIVE POULTRY DEALERS

SEC. 301. INVESTIGATION OF LIVE POULTRY DEALERS.

    (a) Removal of Poultry Slaughter Requirement From Definitions.--
Section 2(a) of the Packers and Stockyards Act, 1921 (7 U.S.C. 182), is 
amended--
            (1) by striking paragraph (8) and inserting the following:
            ``(8) Poultry grower.--The term `poultry grower' means any 
        person engaged in the business of raising or caring for live 
        poultry under a poultry growing arrangement, whether the 
        poultry is owned by the person or by another person;'';
            (2) in paragraph (9), by striking ``and cares for live 
        poultry for delivery, in accord with another's instructions, 
        for slaughter'' and inserting ``or cares for live poultry in 
        accordance with the instructions of another person''; and
            (3) in paragraph (10), by striking ``for the purpose of 
        either slaughtering it or selling it for slaughter by 
        another''.
    (b) Administrative Enforcement Authority Over Live Poultry 
Dealers.--Sections 203, 204, and 205 of the Packers and Stockyards Act, 
1921 (7 U.S.C. 193, 194, 195), are amended by inserting ``or live 
poultry dealer'' after ``packer'' each place it appears.
    (c) Authority To Request Temporary Injunction or Restraining 
Order.--Section 408 of the Packers and Stockyards Act, 1921 (7 U.S.C. 
228a), is amended in the first sentence by striking ``on account of 
poultry'' and inserting ``on account of poultry or poultry care''.
    (d) Violations by Live Poultry Dealers.--Section 411 of the Packers 
and Stockyards Act, 1921 (7 U.S.C. 228b-2), is amended--
            (1) in the first sentence of subsection (a), by striking 
        ``any provision of section 207 or section 410 of''; and
            (2) in the first sentence of subsection (b), by striking 
        ``any provisions of section 207 or section 410'' and inserting 
        ``any provision''.
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