[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[S. 2307 Introduced in Senate (IS)]








109th CONGRESS
  2d Session
                                S. 2307

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


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                           February 16, 2006

   Mr. Harkin (for himself, Mr. Enzi, and Mr. Thomas) 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 ``Competitive and 
Fair Agricultural Markets Act of 2006''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.
                  TITLE I--AGRICULTURAL FAIR PRACTICES

Sec. 101. Agricultural fair practices.
Sec. 102. Application.
                    TITLE II--PACKERS AND STOCKYARDS

Sec. 201. Investigation of live poultry dealers.
Sec. 202. No competitive injury requirement.
Sec. 203. Attorneys fees.
Sec. 204. Appointment of outside counsel.
Sec. 205. Competitive harm.
Sec. 206. Regulations.

                  TITLE I--AGRICULTURAL FAIR PRACTICES

SEC. 101. 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; TABLE OF CONTENTS.

    ``(a) In General.--This Act may be cited as the `Agricultural Fair 
Practices Act of 1967'.
    ``(b) Table of Contents.--The table of contents of this Act is as 
follows:

        ``Sec. 1. Short title; table of contents.
        ``Sec. 2. Definitions.
                ``TITLE I--AGRICULTURAL TRADE PRACTICES

        ``Sec. 101. Office of Special Counsel for Competition Matters.
        ``Sec. 102. Report on corporate structure.
   ``TITLE II--UNFAIR OR DECEPTIVE ACTS OR PRACTICES IN AGRICULTURAL 
                                COMMERCE

        ``Sec. 201. Prohibition on unfair or deceptive acts or 
                            practices in agricultural commerce.
        ``Sec. 202. Agricultural contracts.
        ``Sec. 203. Production contracts.
        ``Sec. 204. Authority of Secretary to promulgate rules and 
                            regulations.
        ``Sec. 205. Enforcement.
        ``Sec. 206. Effect on other laws.
        ``Sec. 207. Assignment of association dues and fees.
        ``Sec. 208. Severability.

``SEC. 2. 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 contract.--The term `agricultural 
        contract' means a marketing contract or a production contract.
            ``(3) 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.).
            ``(4) Association of producers.--
                    ``(A) In general.--The term `association of 
                producers' means an association of producers of 
                agricultural commodities that engages in the marketing, 
                bargaining, shipping, or processing of agricultural 
                commodities or of agricultural services.
                    ``(B) Inclusions.--The term `association of 
                producers' includes--
                            ``(i) an organization dedicated to 
                        promoting the common interest and general 
                        welfare of producers of agricultural 
                        commodities;
                            ``(ii) a cooperative association (as 
                        defined in section 15(a) of the Agricultural 
                        Marketing Act (12 U.S.C. 1141j(a))); and
                            ``(iii) 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).
            ``(5) 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.
            ``(6) 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.
            ``(7) Contract livestock facility.--The term `contract 
        livestock facility' means a facility in which livestock or a 
        product of live livestock is produced under a production 
        contract by a contract producer.
            ``(8) Contractor.--The term `contractor' means a person 
        that, in accordance with a production contract, owns, or will 
        own, an agricultural commodity that is produced by a contract 
        producer.
            ``(9) Contract producer.--The term `contract producer' 
        means a producer that produces an agricultural commodity under 
        a production contract.
            ``(10) Covered person.--The term `covered person' means a 
        dealer, handler, contractor, processor, or commission merchant.
            ``(11) Crop.--The term `crop' means an agricultural 
        commodity produced from a plant.
            ``(12) Dealer.--The term `dealer' means any person engaged 
        in the business of buying, selling, or marketing agricultural 
        commodities in interstate or foreign commerce.
            ``(13) Department.--The term `Department' means the 
        Department of Agriculture.
            ``(14) Handler.--The term `handler' means any person 
        engaged in the business or practice of--
                    ``(A) acquiring agricultural commodities from 
                producers or associations of producers for processing 
                or sale;
                    ``(B) grading, packaging, handling, storing, or 
                processing agricultural commodities received from 
                producers or associations of producers;
                    ``(C) 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 
                commodity; or
                    ``(D) acting as an agent or broker for a handler in 
                the performance of any function or act described in 
                subparagraph (A), (B), or (C).
            ``(15) 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 that, but 
        for the production contract, the contract producer would not 
        have made.
            ``(16) Livestock.--The term `livestock' means beef cattle, 
        dairy cattle, swine, sheep, or poultry.
            ``(17) Marketing contract.--The term `marketing contract' 
        means a written agreement between a covered person and a 
        producer for the purchase of an agricultural commodity produced 
        or raised by the producer.
            ``(18) Person.--The term `person' includes an individual, 
        partnership, corporation, limited liability company, limited 
        partnership, or association.
            ``(19) Processor.--The term `processor' means--
                    ``(A) 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; and
                    ``(B) an agricultural cooperative that handles, 
                prepares, or manufactures (including slaughtering) 
                agricultural commodities of its members' own 
                production.
            ``(20) 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; or
                    ``(B) to plant, raise, harvest, and store a crop, 
                including preparing soil for planting and applying a 
                fertilizer, soil conditioner, or pesticide to a crop.
            ``(21) Producer.--The term `producer' means a person 
        engaged in the production of an agricultural commodity as a 
        farmer, planter, rancher, dairyman, poultryman, or fruit, 
        vegetable, or nut grower.
            ``(22) Production contract.--
                    ``(A) In general.--The term `production contract' 
                means a written agreement that provides for--
                            ``(i) the production of an agricultural 
                        commodity by a contract producer; or
                            ``(ii) the provision of a management 
                        service relating to the production of an 
                        agricultural commodity by a contract producer.
                    ``(B) Inclusions.--The term `production contract' 
                includes--
                            ``(i) a contract between a contractor and a 
                        contract producer for the production of an 
                        agricultural commodity; and
                            ``(ii) a contract between a contractor and 
                        a contract producer for the provision of a 
                        management service in the production of an 
                        agricultural commodity.
            ``(23) Secretary.--The term `Secretary' means the Secretary 
        of Agriculture.

                ``TITLE I--AGRICULTURAL TRADE PRACTICES

``SEC. 101. OFFICE OF SPECIAL COUNSEL FOR COMPETITION MATTERS.

    ``(a) Establishment.--
            ``(1) In general.--There is established within the 
        Department an office to be known as the `Office of Special 
        Counsel for Competition Matters'.
            ``(2) Duties.--The Office shall--
                    ``(A) investigate and prosecute violations of this 
                Act, the Packers and Stockyards Act, 1921 (7 U.S.C. 181 
                et seq.), and any other Act that the Secretary 
                determines to be appropriate;
                    ``(B) serve as a liaison between the Department and 
                the Department of Justice and the Federal Trade 
                Commission with respect to competition and trade 
                practices in the food and agricultural sector; and
                    ``(C) maintain a staff of attorneys and other 
                professionals with the appropriate expertise.
    ``(b) Special Counsel for Competition Matters.--
            ``(1) In general.--The Office shall be headed by the 
        Special Counsel for Competition Matters, who shall be appointed 
        by the President, by and with the advice and consent of the 
        Senate.
            ``(2) Prosecutorial authority.--Notwithstanding title 28, 
        United States Code, the Special Counsel for Competition Matters 
        shall have the authority to bring any civil or administrative 
        action authorized under this Act or any other Act that the 
        Secretary determines to be appropriate.

``SEC. 102. REPORT ON CORPORATE STRUCTURE.

    ``(a) In General.--A covered person with annual sales in excess of 
$100,000,000 shall annually file with the Secretary a report that 
describes, with respect to domestic activities and foreign activities, 
the strategic alliances, ownership in other covered persons, joint 
ventures, subsidiaries, brand names, and interlocking boards of 
directors with other covered persons.
    ``(b) Confidentiality.--A report filed under subsection (a) shall 
be confidential commercial or financial information for the purposes of 
section 552(b)(4) of title 5, United States Code.

   ``TITLE II--UNFAIR OR DECEPTIVE ACTS OR PRACTICES IN AGRICULTURAL 
                                COMMERCE

``SEC. 201. PROHIBITION ON UNFAIR OR DECEPTIVE ACTS OR PRACTICES IN 
              AGRICULTURAL COMMERCE.

    ``(a) Unfair or Deceptive Acts or Practices in Agricultural 
Commerce.--Any unfair or deceptive act or practice in or affecting the 
marketing, receiving, purchasing, sale, or contracting for the 
production of any agricultural commodity by any covered person shall be 
unlawful.
    ``(b) Unfair or Deceptive Acts or Practices Concerning Producer 
Associations.--Subject to subsection (a), it shall be unlawful for any 
covered person knowingly--
            ``(1)(A) to 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
            ``(B) 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) to discriminate against any producer with respect to 
        price, quantity, quality, or other terms of purchase, 
        acquisition, or other handling of an agricultural commodity 
        because of the membership of the producer in, or the contract 
        of the producer with, an association of producers;
            ``(3) to 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 covered person;
            ``(4) to 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) to make false reports about the finances, management, 
        or activities of an association of producers or handlers;
            ``(6) to 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)(A) to interfere with the formation or administration 
        of any association of producers; or
            ``(B) to contribute financial or other support to an 
        association of producers; or
            ``(8) to fail to bargain in good faith.
    ``(c) Unfair or Deceptive Acts or Practices in Agricultural 
Contracts.--It shall be unlawful for a covered person that is a party 
to an agricultural contract--
            ``(1) to fail to act in good faith (as defined in 
        applicable State law provisions of the Uniform Commercial Code) 
        with respect to the performance and enforcement of the 
        agricultural contract;
            ``(2) to fail to include 1 or more cover pages that 
        disclose provisions of the agricultural contract relating to--
                    ``(A) duration;
                    ``(B) termination;
                    ``(C) renewal and 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) assignability;
                    ``(H) the applicable State law and venue;
                    ``(I) the effect of oral modifications;
                    ``(J) remedies for breach;
                    ``(K) in the case of a livestock or poultry 
                production contract, the minimum number of animals 
                subject to the contract;
                    ``(L) other rules or provisions incorporated in the 
                contract by reference; and
                    ``(M) any other terms that the Secretary determines 
                to be appropriate for disclosure; or
            ``(3) to violate any of the requirements relating to 
        production contracts under section 203.
    ``(d) Public Policy Considerations.--
            ``(1) In general.--In determining whether an act or 
        practice is unfair, a court may consider established public 
        policies as evidence to be considered with all other evidence.
            ``(2) Limitation.--Notwithstanding paragraph (1), public 
        policy considerations may not serve as a primary basis for the 
        determination.

``SEC. 202. AGRICULTURAL CONTRACTS.

    ``(a) Confidentiality.--Any provision of an agricultural contract 
that requires that the agricultural contract remain confidential is 
void, except as the provision applies to a trade secret to which 
section 552 of title 5, United States Code, applies.
    ``(b) Arbitration.--If a livestock or poultry contract provides for 
the use of arbitration to resolve a controversy under the livestock or 
poultry contract, arbitration may be used to settle the controversy 
only if, after the controversy arises, both parties consent in writing 
to use arbitration to settle the controversy.

``SEC. 203. PRODUCTION CONTRACTS.

    ``(a) Right of Contract Producers to Cancel Production Contracts.--
            ``(1) In general.--A contract producer may cancel a 
        production contract by mailing a cancellation notice to the 
        contractor not later than the later of--
                    ``(A) the date that is 3 business days after the 
                date on which the production contract is executed; or
                    ``(B) any cancellation date specified in the 
                production contract.
            ``(2) Disclosure.--A production contract shall clearly 
        disclose--
                    ``(A) the right of the contract producer to cancel 
                the production contract;
                    ``(B) the method by which the contract producer may 
                cancel the production contract; and
                    ``(C) the deadline for canceling the production 
                contract.
    ``(b) Production Contract Liens.--
            ``(1) Definition of lien starting date.--In this 
        subsection, the term `lien starting date' means--
                    ``(A) in the case of an annual crop, the date on 
                which the annual crop is planted;
                    ``(B) in the case of a perennial crop, the starting 
                date on which the perennial crop is subject to a 
                production contract;
                    ``(C) in the case of livestock, the date on which 
                the livestock arrive at the contract livestock 
                facility; and
                    ``(D) in the case of milk or any other product of 
                live livestock, the date on which the milk or other 
                product is produced.
            ``(2) Liens.--Except as provided in paragraph (8), in the 
        case of a production contract that provides for the production 
        of an agricultural commodity by a contract producer, the 
        contract producer shall have a lien in the amount owed to the 
        contract producer under the production contract on--
                    ``(A)(i) the agricultural commodity until the 
                agricultural commodity is sold or processed (including 
                slaughtered) by the contractor; and
                    ``(ii) the cash proceeds of the sale of the 
                agricultural commodity, including any cash provided as 
                part of the sale; and
                    ``(B) any property of the contractor that may be 
                subject to a security interest.
            ``(3) Lien period.--A lien for the production of an 
        agricultural commodity under this subsection shall apply during 
        the period--
                    ``(A) beginning on the lien starting date; and
                    ``(B) ending 1 year after the agricultural 
                commodity is no longer under the control of the 
                contract producer.
            ``(4) Perfecting of liens.--To perfect a lien for the 
        production of an agricultural commodity under this subsection, 
        a contract producer shall file a lien statement under 
        applicable State law provisions based on Article 9 of the 
        Uniform Commercial Code.
            ``(5) Priority of liens.--A lien created under this 
        subsection 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 
        subsection.
            ``(6) Enforcement.--
                    ``(A) Control.--Before an agricultural commodity 
                leaves the control of a contract producer, the contract 
                producer may foreclose a lien created under this 
                subsection in the manner provided for the foreclosure 
                of a secured transaction under applicable State law 
                provisions based on Article 9 of the Uniform Commercial 
                Code.
                    ``(B) 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 on Article 9 of the Uniform Commercial Code.
            ``(7) Election of other remedies.--In lieu of obtaining a 
        lien under this subsection, a contract producer described in 
        paragraph (2) may seek to collect funds due under a production 
        contract in accordance with--
                    ``(A) the Packers and Stockyards Act, 1921 (7 
                U.S.C. 181 et seq.); or
                    ``(B) the Perishable Agricultural Commodities Act, 
                1930 (7 U.S.C. 499a et seq.).
            ``(8) Exemption.--This subsection does not apply to a 
        contract producer that is an agricultural cooperative, at least 
        50 percent of the ownership interests of which are held by 
        producers.
    ``(c) Production Contracts Involving Investment Requirements.--
            ``(1) Applicability.--This subsection applies only to a 
        production contract between a contract producer and a 
        contractor if, but for the production contract, the contract 
        producer would not have made a capital investment of $100,000 
        or more.
            ``(2) Restrictions on contract termination.--
                    ``(A) Notice of termination.--Except as provided in 
                subparagraph (C), a contractor shall not terminate or 
                cancel a production contract unless the contractor 
                provides the contract producer with written notice of 
                the intention of the contractor to terminate or cancel 
                the production contract at least 180 days before the 
                effective date of the termination or cancellation.
                    ``(B) Requirements.--The written notice required 
                under subparagraph (A) shall include alleged causes of 
                the termination.
                    ``(C) Exceptions.--A contractor may terminate or 
                cancel a production contract without notice as required 
                under subparagraph (A) if the basis for the termination 
                or cancellation is--
                            ``(i) a voluntary abandonment of the 
                        contractual relationship by the contract 
                        producer, such as a complete failure of the 
                        contract producer to perform under the 
                        production contract;
                            ``(ii) the conviction of the contract 
                        producer of an offense of fraud or theft 
                        committed against the contractor; or
                            ``(iii) the natural end of the production 
                        contract in accordance with the terms of the 
                        production contract.
                    ``(D) Right to cure.--
                            ``(i) In general.--If, not later than 180 
                        days after the date on which the contract 
                        producer receives written notice under 
                        subparagraph (A), the contract producer 
                        remedies each cause of the breach of contract 
                        alleged in the written notice, the contractor 
                        may not terminate or cancel a production 
                        contract under this paragraph.
                            ``(ii) No admission of breach.--The remedy 
                        or attempt to remedy the causes for the breach 
                        of contract by the contract producer under 
                        clause (i) does not constitute an admission of 
                        breach of contract.
    ``(d) Additional Capital Investments in Production Contracts.--
            ``(1) In general.--A covered person shall not require a 
        contract producer to make additional capital investments in 
        connection with a production contract that exceed the initial 
        investment requirements of the production contract.
            ``(2) Exceptions.--Notwithstanding paragraph (1), a covered 
        person may require additional capital investments if--
                    ``(A) the additional capital investments are offset 
                by reasonable additional consideration, including 
                compensation or a modification to the terms of the 
                production contract; and
                    ``(B) the contract producer agrees in writing that 
                there is acceptable and satisfactory consideration for 
                the additional capital investment.

``SEC. 204. AUTHORITY OF SECRETARY TO PROMULGATE RULES AND REGULATIONS.

    ``The Secretary, acting through the Special Counsel for Competition 
Matters, may promulgate such rules and regulations as are necessary to 
carry out this Act and the Packers and Stockyards Act, 1921 (7 U.S.C. 
181 et seq.), including rules and regulations--
            ``(1) relating to unfair or deceptive acts or practices in 
        agriculture;
            ``(2) that define with specificity acts or practices that 
        are to be prohibited as unfair or deceptive acts or practices 
        in agriculture under section 201; and
            ``(3) to prevent unfair or deceptive acts or practices from 
        occurring in agriculture.

``SEC. 205. ENFORCEMENT.

    ``(a) Civil Actions by the Secretary Against Covered Persons.--In 
any case in which the Secretary has reasonable cause to believe that 
any covered person has engaged in any act or practice that violates 
this Act, the Secretary may bring a civil action in the United States 
district court of the jurisdiction of residence of the covered person 
by filing a complaint requesting preventive relief, including an 
application for a permanent or temporary injunction, restraining order, 
or other order, against the covered person.
    ``(b) Civil Actions Against Covered Persons.--
            ``(1) Preventive relief.--
                    ``(A) In general.--In any case in which any covered 
                person has engaged, or there are reasonable grounds to 
                believe that any covered person is about to engage, in 
                any act or practice prohibited by this Act, 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 in the United States district court of the 
                jurisdiction of residence of the aggrieved person.
                    ``(B) 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.
            ``(2) Damages.--
                    ``(A) 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, 
                this Act may bring a civil action in the United States 
                district court of the jurisdiction of residence of the 
                injured person or any State court of competent 
                jurisdiction to recover--
                            ``(i) damages sustained by the person as a 
                        result of the violation; and
                            ``(ii) any additional penalty that the 
                        court may allow, but not more than $1,000 per 
                        violation.
                    ``(B) Limitation on actions.--A civil action under 
                subparagraph (A) shall be barred unless commenced 
                within 2 years after the cause of action accrues.
            ``(3) Attorney's fees.--In any action commenced under 
        paragraph (1) or (2), the court may allow the prevailing party 
        a reasonable attorney's fee as part of the costs.
    ``(c) Jurisdiction of District Courts.--Not later than 2 years 
after the date on which a violation of this Act occurs, an action to 
enforce this Act may be brought in--
            ``(1) the United States district court of the jurisdiction 
        of residence of the aggrieved person, notwithstanding the fact 
        that an aggrieved person has not exhausted all administrative 
        or other remedies provided by law; or
            ``(2) any other court of competent jurisdiction in the 
        State of residence of the aggrieved person.
    ``(d) Choice of Law, Jurisdiction, and Venue.--
            ``(1) Choice of law.--Any provision in an agricultural 
        contract requiring the application of the law of a State other 
        than the State in which the producer resides is void and 
        unenforceable.
            ``(2) Jurisdiction.--A covered person that enters into an 
        agricultural contract with a producer shall be subject to 
        personal jurisdiction in the State in which the producer 
        resides.
            ``(3) Venue.--Venue shall be determined on the basis of the 
        residence of the producer.
    ``(e) Liability for Acts of Agents.--In the construction and 
enforcement of this Act, the act, omission, or failure of any officer, 
agent, or person acting for or employed by any other person within the 
scope of the employment or office of the officer, agent, or person, 
shall be considered to be the act, omission, or failure of the other 
person.

``SEC. 206. EFFECT ON OTHER LAWS.

    ``(a) State Laws.--
            ``(1) In general.--Subject to paragraph (2), this Act does 
        not annul, alter, or affect, or exempt any person subject to 
        this Act from complying with, the law of any State with respect 
        to trade practices in agriculture.
            ``(2) Exception.--
                    ``(A) In general.--This Act annuls, alters, or 
                affects, or exempts a person from, a State law referred 
                to in paragraph (1) to the extent the State law is 
                inconsistent with this Act.
                    ``(B) Inconsistency.--For the purposes of this 
                paragraph, a State law is not inconsistent with this 
                Act if the protection that the law affords any producer 
                is greater than the protection provided to a producer 
                by this Act.
    ``(b) State Courts.--This Act does not deprive a State court of 
jurisdiction under a State law dealing with the same subject as this 
Act.

``SEC. 207. ASSIGNMENT OF ASSOCIATION DUES AND FEES.

    ``(a) In General.--A producer of an agricultural commodity or 
service may execute, as a clause in an agricultural contract, 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 covered person shall--
            ``(1) deduct a portion of the amount to be paid for 
        products or services of the producer under a production 
        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 Covered Person.--After a covered person receives 
notice from a producer of an assignment under subsection (a), the 
covered person shall--
            ``(1) deduct the amount authorized by the assignment from 
        the amount paid for any agricultural commodity sold by the 
        producer or for any service rendered under any production 
        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. 208. SEVERABILITY.

    ``If any provision of this Act or application of any provision of 
this Act is held invalid, the remainder of this Act and the application 
of the provision to other persons and circumstances shall not be 
affected by the invalidity.''.

SEC. 102. APPLICATION.

    The amendment made by section 101 applies to any contract entered 
into on or after the date of enactment of this Act.

                    TITLE II--PACKERS AND STOCKYARDS

SEC. 201. 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, regardless of 
        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''.

SEC. 202. NO COMPETITIVE INJURY REQUIREMENT.

    Section 202(a) of the Packers and Stockyards Act, 1921 (7 U.S.C. 
192), is amended by inserting after ``device'' the following: ``, 
regardless of whether the practice or device causes a competitive 
injury or otherwise adversely affects competition''.

SEC. 203. ATTORNEYS FEES.

    Section 308(a) of the Packers and Stockyards Act, 1921 (7 U.S.C. 
209(a)) is amended by inserting before the period at the end the 
following: ``and for the cost of the litigation, including reasonable 
attorneys' fees''.

SEC. 204. APPOINTMENT OF OUTSIDE COUNSEL.

    Section 407(a) of the Packers and Stockyards Act, 1921 (7 U.S.C. 
228(a)), is amended by inserting ``obtain the services of attorneys who 
are not employees of the Federal Government,'' before ``and make such 
expenditures''.

SEC. 205. COMPETITIVE HARM.

    Title IV of the Packers and Stockyards Act, 1921 (7 U.S.C. 221 et 
seq.), is amended by adding at the end the following:

``SEC. 417. COMPETITIVE HARM.

    ``A person affected by an unfair practice under section 202(a) or 
312(a) shall not be required to prove predatory intent, competitive 
injury, or likelihood of injury.''.

SEC. 206. REGULATIONS.

    (a) In General.--Not later than 180 days after the date of 
enactment of this Act, the Secretary of Agriculture shall promulgate 
regulations to implement the amendments made by this Act, including 
providing a definition of the term ``unreasonable preference or 
advantage'' for purposes of section 202(b) of the Packers and 
Stockyards Act, 1921 (7 U.S.C. 192(b)).
    (b) Requirements.--Regulations promulgated under subsection (a) 
shall strictly prohibit any preferences or price differences based on 
volume except for preferences or price differences that reflect actual, 
verifiable lower costs of acquiring livestock from larger volume 
producers.
                                 <all>