[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2135 Introduced in House (IH)]







110th CONGRESS
  1st Session
                                H. R. 2135

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


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                              May 3, 2007

 Mr. Boswell (for himself, Mrs. Cubin, Ms. Kaptur, Mr. Braley of Iowa, 
and Mr. Loebsack) introduced the following bill; which was referred to 
                      the Committee on Agriculture

_______________________________________________________________________

                                 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 2007''.
    (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. 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:

``SEC. 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.
  ``TITLE II--PROHIBITIONS ON ANY UNFAIR, UNJUSTLY DISCRIMINATORY, OR 
  DECEPTIVE ACT, DEVICE, OR ANTI-COMPETITIVE PRACTICE IN AGRICULTURAL 
                                COMMERCE

``Sec. 201. Prohibitions involving crops.
``Sec. 202. Prohibitions involving producer associations and production 
                            contracts.
``Sec. 203. Production contracts and marketing contracts.
``Sec. 204. Production contracts.
``Sec. 205. Authority of Secretary to promulgate rules and regulations.
``Sec. 206. Enforcement.
``Sec. 207. Effect on other laws.
``Sec. 208. Assignment of association dues and fees.
``Sec. 209. Severability.

``SEC. 2. DEFINITIONS.

    ``In this Act:
            ``(1) Agricultural commodity.--
                    ``(A) In general.--Except as provided in 
                subparagraph (B), 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).
                    ``(B) Exception.--In section 201, the term 
                `agricultural commodity'--
                            ``(i) means a crop; and
                            ``(ii) does not include a perishable 
                        agricultural commodity, as that term is defined 
                        in section 1(b) of the Perishable Agricultural 
                        Commodities Act, 1930 (7 U.S.C. 499a(b)).
            ``(2) Agricultural cooperative.--The term `agricultural 
        cooperative' means an association of persons engaged in the 
        production, marketing, or processing of an agricultural 
        commodity that meets the requirements of the Act 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.).
            ``(3) 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).
            ``(4) 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.
            ``(5) 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.
            ``(6) 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.
            ``(7) 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.
            ``(8) Contract producer.--The term `contract producer' 
        means a producer that produces an agricultural commodity under 
        a production contract.
            ``(9) Covered person.--The term `covered person' means a 
        dealer, handler, contractor, processor, or commission merchant.
            ``(10) Crop.--The term `crop' means an agricultural 
        commodity produced from a plant.
            ``(11) Dealer.--The term `dealer' means any person engaged 
        in the business of buying, selling, or marketing agricultural 
        commodities in interstate or foreign commerce.
            ``(12) Department.--The term `Department' means the 
        Department of Agriculture.
            ``(13) 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).
            ``(14) 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.
            ``(15) Livestock.--The term `livestock' has the meaning 
        given the term in section 602 of the Agricultural Act of 1949 
        (7 U.S.C. 1471).
            ``(16) 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.
            ``(17) Person.--The term `person' includes an individual, 
        partnership, corporation, limited liability company, limited 
        partnership, or association.
            ``(18) 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.
            ``(19) 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.
            ``(20) 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.
            ``(21) 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; or
                            ``(ii) a contract between a contractor and 
                        a contract producer for the provision of a 
                        management service in the production of an 
                        agricultural commodity.
            ``(22) 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 and the Packers and Stockyards Act, 1921 (7 U.S.C. 
                181 et seq.);
                    ``(B) serve as a liaison between, and act in 
                consultation with, 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 the Packers and Stockyards 
        Act, 1921 (7 U.S.C. 181 et seq.).

  ``TITLE II--PROHIBITIONS ON ANY UNFAIR, UNJUSTLY DISCRIMINATORY, OR 
  DECEPTIVE ACT, DEVICE, OR ANTI-COMPETITIVE PRACTICE IN AGRICULTURAL 
                                COMMERCE

``SEC. 201. PROHIBITIONS INVOLVING CROPS.

    ``(a) Prohibition on Any Unfair, Unjustly Discriminatory, or 
Deceptive Act, Device, or Anti-Competitive Practice.--Any unfair, 
unjustly discriminatory, or deceptive act, device, or anti-competitive 
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) Other Unlawful Acts.--It shall be unlawful for any covered 
person--
            ``(1) to make or give any undue or unreasonable preference 
        or advantage to any particular person or locality in any 
        respect, or subject any particular person or locality to any 
        undue or unreasonable prejudice or disadvantage in any respect;
            ``(2) to sell or otherwise transfer to or for any other 
        person, or buy or otherwise receive from or for any other 
        person, any article for the purpose or with the effect of 
        manipulating or controlling prices, or of creating a monopoly 
        in the acquisition of, buying, selling, or dealing in, any 
        article, or of restraining commerce;
            ``(3) to engage in any course of business or do any act for 
        the purpose or with the effect or manipulating or controlling 
        prices, or of creating a monopoly in the acquisition of, 
        buying, selling, or dealing in, any article, or of restraining 
        commerce;
            ``(4) to conspire, combine, agree, or arrange with any 
        other person--
                    ``(A) to apportion territory for carrying on 
                business;
                    ``(B) to apportion purchases or sales of any 
                article; or
                    ``(C) to manipulate or control prices; or
            ``(5) to conspire, combine, agree, or arrange with any 
        other person to do, or aid or abet the doing of, any act made 
        unlawful by paragraph (1), (2), (3), or (4).
    ``(c) Public Policy Considerations.--In determining whether an act, 
device, or anti-competitive practice described in subsection (a) is 
unfair, a court may consider whether--
            ``(1) a reasonable person would consider the act, device, 
        or practice unfair under the circumstances, whether or not the 
        act, device, or practice has previously been found unlawful; or
            ``(2) the act, device, or practice may violate standards 
        established by Federal or State law (including common law and 
        regulations).

``SEC. 202. PROHIBITIONS INVOLVING PRODUCER ASSOCIATIONS AND PRODUCTION 
              CONTRACTS.

    ``(a) Any Unlawful Act Involving Producer Associations and 
Production Contracts.--It shall be unlawful for any covered person--
            ``(1) 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;
            ``(2) to refuse to deal with any producer because of the 
        exercise of the right of the producer to join and belong to the 
        association;
            ``(3) 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;
            ``(4) 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;
            ``(5) 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;
            ``(6) to make false reports about the finances, management, 
        or activities of an association of producers or covered 
        persons;
            ``(7) 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;
            ``(8) to interfere with the formation or administration of 
        any association of producers;
            ``(9) to contribute financial or other support to an 
        association of producers; or
            ``(10) to fail to bargain in good faith with an association 
        of producers.
    ``(b) Any Unlawful Act in Production Contracts.--It shall be 
unlawful for a covered person that is a party to a production 
contract--
            ``(1) to fail to act in good faith with respect to the 
        performance and enforcement of the production contract;
            ``(2) to fail to include 1 or more cover pages that 
        disclose provisions of the production 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 204.
    ``(c) Public Policy Considerations.--In determining whether an act, 
device, or anti-competitive practice described in section 201(a), with 
respect to the production of an agricultural commodity, is unfair, a 
court may consider whether--
            ``(1) a reasonable person would consider the act, device, 
        or practice unfair under the circumstances, whether or not the 
        act, device, or practice has previously been found unlawful; or
            ``(2) the act, device, or practice may violate standards 
        established by Federal or State law (including common law and 
        regulations).

``SEC. 203. PRODUCTION CONTRACTS AND MARKETING CONTRACTS.

    ``(a) Confidentiality.--Any provision of a production contract or a 
marketing contract that requires that the production contract or 
marketing 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 or marketing 
contract provides for the use of arbitration to resolve a controversy 
under the livestock or poultry contract or marketing 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. 204. 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 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.
    ``(c) 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. 205. 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, unjustly discriminatory, or 
        deceptive acts, devices, or anti-competitive practices in 
        agriculture;
            ``(2) that define with specificity any act, device, or 
        practice that is to be prohibited as unfair, unjustly 
        discriminatory, or any deceptive act, device, or anti-
        competitive practice in agriculture under section 201 or 202; 
        and
            ``(3) to prevent any unfair, unjustly discriminatory, or 
        deceptive act, device, or anti-competitive practice from 
        occurring in agriculture.

``SEC. 206. 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 4 years after the cause of action accrues.
            ``(3) Attorneys' fees.--In any action commenced under 
        paragraph (1) or (2), the court may allow the prevailing party 
        the costs of the litigation, including reasonable attorneys' 
        fees.
    ``(c) Jurisdiction of District Courts.--Not later than 4 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 a production 
        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 a 
        production 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. 207. 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.
    ``(c) Relationship to Other Laws.--The Packers and Stockyards Act, 
1921 (7 U.S.C. 181 et seq.) and the Perishable Agricultural Commodities 
Act, 1930 (7 U.S.C. 499a et seq.) shall control if there is a conflict 
between those Acts and section 206.

``SEC. 208. ASSIGNMENT OF ASSOCIATION DUES AND FEES.

    ``(a) In General.--A producer of an agricultural commodity or 
service may execute, as a clause in a production contract or a 
marketing 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 or a marketing 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 or marketing 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. 209. 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(a)), 
is amended--
            (1) by striking paragraph (8) and inserting the following:
            ``(8) Poultry grower.--
                    ``(A) In general.--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.
                    ``(B) Exclusion.--The term `poultry grower' does 
                not include an employee of the owner of live poultry 
                described in subparagraph (A).'';
            (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 striking ``packer or 
swine contractor'' and inserting ``packer, live poultry dealer, or 
swine contractor'' 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.--
            (1) Penalty.--Section 203(b) of the Packers and Stockyards 
        Act, 1921 (7 U.S.C. 193(b)) is amended in the third sentence by 
        striking ``$10,000'' and inserting ``$22,000''.
            (2) Repeals.--Sections 411, 412, and 413 of the Packers and 
        Stockyards Act, 1921 (7 U.S.C. 228b-2, 228b-3, 228b-4)), are 
        repealed.

SEC. 202. NO COMPETITIVE INJURY REQUIREMENT.

    Section 202 of the Packers and Stockyards Act, 1921 (7 U.S.C. 192), 
is amended--
            (1) in subsection (a), by inserting after ``device'' the 
        following: ``, regardless of whether the practice or device 
        causes a competitive injury or otherwise adversely affects 
        competition and regardless of any alleged business 
        justification for the practice or device''; and
            (2) in subsection (e), by inserting after ``commerce'' the 
        following: ``, regardless of whether the course of business or 
        act causes a competitive injury or otherwise adversely affects 
        competition and regardless of any alleged business 
        justification for the course of business or act''.

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 costs 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. 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>