[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[S. 3419 Introduced in Senate (IS)]

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116th CONGRESS
  2d Session
                                S. 3419

   To amend the Packers and Stockyards Act, 1921, to provide for the 
establishment of a trust for the benefit of all unpaid cash sellers of 
                   livestock, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             March 9, 2020

Mr. Inhofe (for himself, Ms. Smith, Mr. Cramer, Mr. Hoeven, Ms. Ernst, 
 Mr. Daines, Mr. Tester, Mrs. Hyde-Smith, and Mr. Grassley) introduced 
the following bill; which was read twice and referred to the Committee 
                on Agriculture, Nutrition, and Forestry

_______________________________________________________________________

                                 A BILL


 
   To amend the Packers and Stockyards Act, 1921, to provide for the 
establishment of a trust for the benefit of all unpaid cash sellers of 
                   livestock, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Securing All Livestock Equitably Act 
of 2020'' or the ``SALE Act of 2020''.

SEC. 2. ESTABLISHMENT OF TRUST FOR BENEFIT OF UNPAID CASH SELLERS OF 
              LIVESTOCK.

    Title III of the Packers and Stockyards Act, 1921 (7 U.S.C. 201 et 
seq.), is amended by adding at the end the following:

``SEC. 318. STATUTORY TRUST ESTABLISHED; DEALER.

    ``(a) Definition of Cash Sale.--In this section, the term `cash 
sale' means a sale in which the seller does not expressly extend credit 
to the buyer.
    ``(b) Establishment.--
            ``(1) In general.--Except as provided in paragraph (2), all 
        livestock purchased by a dealer in cash sales and all 
        inventories of, or receivables or proceeds from, that livestock 
        shall be held by the dealer in trust for the benefit of all 
        unpaid cash sellers of that livestock until full payment has 
        been received by those unpaid cash sellers.
            ``(2) Exemption.--This section shall not apply to a dealer 
        the amount of average annual purchases of livestock of which 
        does not exceed $100,000.
            ``(3) Effect of dishonored instruments.--For purposes of 
        determining full payment under paragraph (1), a payment to an 
        unpaid cash seller shall not be considered to have been made if 
        the unpaid cash seller receives a payment instrument that is 
        dishonored.
    ``(c) Preservation of Trust.--An unpaid cash seller shall lose the 
benefit of a trust under subsection (b) if the unpaid cash seller has 
not preserved the trust by--
            ``(1) providing a written notice to the applicable dealer 
        of the intent of the unpaid cash seller to preserve the 
        benefits of the trust; and
            ``(2) filing that notice with the Secretary--
                    ``(A) not later than 30 days after the final date 
                for making a payment under section 409 in the event 
                that a payment instrument has not been received; or
                    ``(B) not later than 15 business days after the 
                date on which the seller receives notice that the 
                payment instrument promptly presented for payment has 
                been dishonored.
    ``(d) Notice to Lien Holders.--Not later than 15 business days 
after the date on which a dealer receives notice under subsection 
(c)(1) with respect to a trust, the dealer shall give notice of the 
intent of the unpaid cash seller to preserve the benefits of the trust 
to all persons who have recorded a security interest in, or lien on, 
the livestock held in that trust.
    ``(e) Purchase of Livestock Subject to Trust.--
            ``(1) In general.--A buyer in the ordinary course that 
        purchases livestock that is held in trust by a dealer under 
        subsection (b) shall receive good title to the livestock free 
        of the dealer trust if the buyer receives the livestock--
                    ``(A) in exchange for payment of new value; and
                    ``(B) in good faith and without notice that the 
                transfer is a breach of trust.
            ``(2) Payment.--Payment shall not be considered to have 
        been made under paragraph (1)(A) if a payment instrument given 
        in exchange for the livestock is dishonored.
    ``(f) Transfer of Livestock Subject to Trust.--A transfer of 
livestock that is held in trust by a dealer under subsection (b) shall 
not be considered to be for new value under subsection (e)(1)(A) if the 
transfer is--
            ``(1) in satisfaction of an antecedent debt; or
            ``(2) to a secured party pursuant to a security agreement.
    ``(g) Enforcement.--
            ``(1) In general.--The Secretary shall carry out at least 
        one of the enforcement activities described in paragraph (2) if 
        the Secretary has reason to believe that--
                    ``(A) a dealer has failed to perform the duties 
                required by subsection (b) with respect to a trust 
                under that subsection; or
                    ``(B) carrying out an enforcement activity is in 
                the best interest of an unpaid cash seller.
            ``(2) Enforcement activities.--The enforcement activities 
        referred to in paragraph (1) are the following:
                    ``(A) Appointing an independent trustee to carry 
                out the duties of the trustee in accordance with this 
                section, preserve trust assets, and enforce a trust.
                    ``(B) Serving as an independent trustee, preserving 
                trust assets, and enforcing a trust.
                    ``(C) Bringing a civil action in the district court 
                of the United States for the judicial district in which 
                the dealer resides--
                            ``(i) to enjoin a dealer from performing 
                        the duties required by subsection (b); and
                            ``(ii) to preserve trust assets and enforce 
                        a trust.
            ``(3) Effect on unpaid sellers.--Nothing in this subsection 
        precludes an unpaid cash seller from bringing a civil action in 
        a court of competent jurisdiction to preserve or enforce a 
        trust under subsection (b).''.
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