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<dc:title>118 S271 IS: Farm System Reform Act of 2023</dc:title>
<dc:publisher>U.S. Senate</dc:publisher>
<dc:date>2023-02-02</dc:date>
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<dc:language>EN</dc:language>
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<distribution-code display="yes">II</distribution-code><congress>118th CONGRESS</congress><session>1st Session</session><legis-num>S. 271</legis-num><current-chamber>IN THE SENATE OF THE UNITED STATES</current-chamber><action><action-date date="20230202">February 2, 2023</action-date><action-desc><sponsor name-id="S370">Mr. Booker</sponsor> (for himself, <cosponsor name-id="S366">Ms. Warren</cosponsor>, and <cosponsor name-id="S313">Mr. Sanders</cosponsor>) introduced the following bill; which was read twice and referred to the <committee-name committee-id="SSAF00">Committee on Agriculture, Nutrition, and Forestry</committee-name></action-desc></action><legis-type>A BILL</legis-type><official-title>To place a moratorium on large concentrated animal feeding operations, to strengthen the Packers and Stockyards Act, 1921, to require country of origin labeling on beef, pork, and dairy products, and for other purposes. </official-title></form><legis-body display-enacting-clause="yes-display-enacting-clause"><section section-type="section-one" id="S1"><enum>1.</enum><header>Short title; table of contents</header><subsection id="id62B09695ABBD40D9840E6A078B25985B"><enum>(a)</enum><header>Short title</header><text display-inline="yes-display-inline">This Act may be cited as the <quote><short-title>Farm System Reform Act of 2023</short-title></quote>.</text></subsection><subsection commented="no" id="id9FF2911B28E7402A9A79FC455632E4A1"><enum>(b)</enum><header>Table of contents</header><text>The table of contents for this Act is as follows:</text><toc><toc-entry idref="S1" level="section">Sec. 1. Short title; table of contents.</toc-entry><toc-entry idref="id73FF3AE8236C4CFF9F16EFB0FAA94C4B" level="section">Sec. 2. Definition of Secretary.</toc-entry><toc-entry idref="idC956A5AA91B046E9A3135703C0A63DD3" level="title">TITLE I—Animal feeding operations</toc-entry><toc-entry idref="idb8c970fd374b4f7e999d78cfc95f6cfd" level="section">Sec. 101. Definitions.</toc-entry><toc-entry idref="idd1eef906e5824655bafd2fe2d818e7a8" level="section">Sec. 102. Moratorium on large concentrated animal feeding operations.</toc-entry><toc-entry idref="idf88c5f46ec1a4a128f83e0c224ac7808" level="section">Sec. 103. Voluntary debt forgiveness and transition assistance program for animal feeding operations.</toc-entry><toc-entry idref="idbd71fc4eb4cf45eb894d1cc8d91aa63e" level="section">Sec. 104. Integrator responsibilities and liabilities.</toc-entry><toc-entry idref="id716D4B7C5A124C6384643DA0FC24C482" level="title">TITLE II—Amendments to Packers and Stockyards Act, 1921</toc-entry><toc-entry idref="id66883acbd95547719db3055bd53a30aa" level="section">Sec. 201. Definitions.</toc-entry><toc-entry idref="id68b206ba105148738e935a5e206b46de" level="section">Sec. 202. Unlawful practices.</toc-entry><toc-entry idref="id23DB75AB011447AF85A5C2119D4DD0A0" level="section">Sec. 203. Spot market purchases of livestock by packers.</toc-entry><toc-entry idref="id20da10dc58f34fcd8fcb2bdffe14d655" level="section">Sec. 204. Investigation of live poultry dealers.</toc-entry><toc-entry idref="ida9e99cf4116041d2a29fd54d9166226a" level="section">Sec. 205. Award of attorney fees.</toc-entry><toc-entry idref="id6D37916F37BD4894A1FB285141D3EB88" level="section">Sec. 206. Technical amendments.</toc-entry><toc-entry idref="id96872AB971F043C4BE12D929C18C8D65" level="title">TITLE III—Labeling of meat and dairy products</toc-entry><toc-entry idref="idfb4905573d8a4be3a039693bd9b89eeb" level="section">Sec. 301. Restoration of mandatory country of origin labeling for beef and pork; inclusion of dairy products.</toc-entry><toc-entry idref="id53927c5dfdc64b819856045326f2fe3c" level="section">Sec. 302. Truth in labeling for meat and meat food products.</toc-entry></toc></subsection></section><section commented="no" id="id73FF3AE8236C4CFF9F16EFB0FAA94C4B"><enum>2.</enum><header>Definition of Secretary</header><text display-inline="no-display-inline">In this Act, the term <quote>Secretary</quote> means the Secretary of Agriculture.</text></section><title id="idC956A5AA91B046E9A3135703C0A63DD3" style="OLC"><enum>I</enum><header>Animal feeding operations</header><section id="idb8c970fd374b4f7e999d78cfc95f6cfd"><enum>101.</enum><header>Definitions</header><text display-inline="no-display-inline">In this title:</text><paragraph commented="no" id="id9d1fbdcf06e34956bed175cacbbb7955"><enum>(1)</enum><header>Agronomic requirement</header><subparagraph commented="no" id="idEEA1591F09C140B7B14F338A8DC82F87"><enum>(A)</enum><header>In general</header><text>The term <term>agronomic requirement</term> means the quantity of nutrient necessary to achieve a reasonable yield goal for a crop, as determined based on land grant university fertility rates, soil testing for available nutrients, manure analysis, and other planned nutrient applications.</text></subparagraph><subparagraph commented="no" id="id1b012b2915ba4ff1aedc7ef5c8f45547"><enum>(B)</enum><header>Exclusions</header><text>Planned nutrient applications under subparagraph (A) do not include nutrient indices, risk indices, or other methods that allow land application of manure in excess of crop need.</text></subparagraph></paragraph><paragraph id="idc6d6a50bb52c48f5b619876dc5dc1b01"><enum>(2)</enum><header>Animal feeding operation; AFO</header><subparagraph id="id3E8E60C99A554B10A28A29646AD1CFF2"><enum>(A)</enum><header>In general</header><text>The term <term>animal feeding operation</term> or <term>AFO</term> means a lot or facility at which—</text><clause id="idb4cc5c3936974850bc5170cf57ffd4ba"><enum>(i)</enum><text>for not less than a total of 45 days in any 12-month period, animals (other than aquatic animals) are—</text><subclause id="idC5E7F6681B5141A095716AA722077D3E"><enum>(I)</enum><text>stabled or confined; and</text></subclause><subclause id="idD9E7F90729CA4E3ABF0034A7DD5E1CB0"><enum>(II)</enum><text>fed or maintained; and</text></subclause></clause><clause id="id7d0917f2a6f2455a867eca3973ce2bb0"><enum>(ii)</enum><text>crops, vegetation, forage growth, or postharvest residues are not sustained in the normal growing season over any portion of the lot or facility.</text></clause></subparagraph><subparagraph id="idF12EE2487A4F442CADF925A04D23277F"><enum>(B)</enum><header>Aggregation</header><text>Two or more lots or facilities described in subparagraph (A) shall constitute a single animal feeding operation if the lots or facilities—</text><clause id="idF00130C43E5E429E8F1AC0B6C3D2EAD7"><enum>(i)</enum><text>are located within 3 miles of each other; and</text></clause><clause id="id0FFCD842E7134642AF734027D1C2757C"><enum>(ii)</enum><text>are under common ownership or control.</text></clause></subparagraph><subparagraph id="idc9a75ad2f5684c9c894be61b8465f740"><enum>(C)</enum><header>Exclusion</header><text>The term <term>animal feeding operation</term> or <term>AFO</term> does not include a stockyard (as that term is defined in section 302(a) of the Packers and Stockyards Act, 1921 (<external-xref legal-doc="usc" parsable-cite="usc/7/202">7 U.S.C. 202(a)</external-xref>)).</text></subparagraph></paragraph><paragraph id="id91829ee32cd94e1a8fabcdf3accde792"><enum>(3)</enum><header>Large concentrated animal feeding operation; large CAFO</header><text>The term <term>large concentrated animal feeding operation</term> or <term>large CAFO</term> means an AFO at which are present not less than—</text><subparagraph id="idb8a5d9ee59c44e33b6e9238103208cf1"><enum>(A)</enum><text>700 mature dairy cows, milked or dry;</text></subparagraph><subparagraph id="id062ac5a1e12b470ba31407c67b30eb3d"><enum>(B)</enum><text>1,000 veal calves;</text></subparagraph><subparagraph commented="no" id="ida3163f0e6ba24068b9a9baf1b270fcbf"><enum>(C)</enum><text>1,000 cattle (including heifers, steers, bulls, cows, and calves) other than mature dairy cows or veal calves;</text></subparagraph><subparagraph id="id82ca5af0e05b44298f2e9f664650156e"><enum>(D)</enum><text>2,500 swine, each weighing not less than 55 pounds;</text></subparagraph><subparagraph id="id51ecc7be364645e097cbc863b661529c"><enum>(E)</enum><text>10,000 swine, each weighing not more than 55 pounds;</text></subparagraph><subparagraph id="id8a55c9adaaa34a4b923f7e20481849f9"><enum>(F)</enum><text>500 horses;</text></subparagraph><subparagraph id="id44023ff6e9e04437a7324c2ef37a4a97"><enum>(G)</enum><text>10,000 sheep or lambs;</text></subparagraph><subparagraph id="id287083d3fc094928a677de73dbab02e3"><enum>(H)</enum><text>55,000 turkeys;</text></subparagraph><subparagraph id="id80D3EA6B48E343ECA4E316804EDDC4EB"><enum>(I)</enum><text>in the case of an AFO that uses a liquid manure handling system—</text><clause id="idFE224BD193C0479AB04A81F1C47F586D"><enum>(i)</enum><text>30,000 laying hens or broilers; or</text></clause><clause id="idFDADF82F3DF6403A93CDF67B95ECCC8F"><enum>(ii)</enum><text>5,000 ducks; or</text></clause></subparagraph><subparagraph id="id649C87C421BC42A1861501A655674B2C"><enum>(J)</enum><text>in the case of an AFO that uses a system other than a liquid manure handling system—</text><clause id="id9217687822a8495db92bbbf0fae4dba2"><enum>(i)</enum><text>125,000 chickens (other than laying hens);</text></clause><clause id="idc4caf67d40b24f44b2dbc71bc9f0f4d2"><enum>(ii)</enum><text>82,000 laying hens; or</text></clause><clause id="id5d6dd513a3264a79b4bec49018421f91"><enum>(iii)</enum><text>30,000 ducks.</text></clause></subparagraph></paragraph><paragraph id="idb4ddbc816d984177890be53dc5810842"><enum>(4)</enum><header>Contract grower</header><text>The term <term>contract grower</term> means an owner of an AFO that raises livestock or poultry pursuant to a written contract, marketing arrangement, or other arrangement with an integrator.</text></paragraph><paragraph id="idf61dcb73cc1a40d4987454b50de5ff62"><enum>(5)</enum><header>Integrator</header><text>The term <term>integrator</term> means an individual or entity that contracts with a contract grower under a growout contract, marketing arrangement, or other arrangement under which the contract grower raises and cares for livestock or poultry at an AFO in accordance with the instructions of the integrator for the purpose of slaughtering the livestock or poultry or selling the livestock or poultry for slaughter, if the livestock or poultry is sold or shipped in commerce (as described in section 2(b) of the Packers and Stockyards Act, 1921 (<external-xref legal-doc="usc" parsable-cite="usc/7/183">7 U.S.C. 183</external-xref>)).</text></paragraph><paragraph id="id7937031b99814dcfa8e975636b410c35"><enum>(6)</enum><header>Manure</header><text>The term <term>manure</term> means—</text><subparagraph id="idB6586485B2594D07A6EA0384F43A01C8"><enum>(A)</enum><text>the fecal and urinary excretions of livestock and poultry; and</text></subparagraph><subparagraph id="id6AA91EEE43DD42D4AD00D3539DCDF530"><enum>(B)</enum><text>litter, bedding, compost and raw materials, process wastewater, and other materials commingled with the excretions described in subparagraph (A) or set aside for disposal after such commingling.</text></subparagraph></paragraph></section><section id="idd1eef906e5824655bafd2fe2d818e7a8"><enum>102.</enum><header>Moratorium on large concentrated animal feeding operations</header><subsection id="idded6a40c36f341efa480341f0d05e6f8"><enum>(a)</enum><header>In general</header><text>No large CAFO may commence or expand operations on or after the date of enactment of this Act.</text></subsection><subsection id="idd00442c2ca32476bbb0393de0b31afa5"><enum>(b)</enum><header>Cessation of operations</header><text>No large CAFO may continue to operate as a large CAFO after January 1, 2041.</text></subsection><subsection id="id6116db9a1d27470a8442d94045334c24"><enum>(c)</enum><header>Penalties</header><text>Any person that violates subsection (a) or (b) may be assessed a civil penalty of up to $10,000 per violation, per day, in addition to any other applicable statutory civil penalty or monetary damages assessed pursuant to any State common law judgment.</text></subsection></section><section id="idf88c5f46ec1a4a128f83e0c224ac7808"><enum>103.</enum><header>Voluntary debt forgiveness and transition assistance program for animal feeding operations</header><subsection id="id155641e048cc4f23aa3d1f786681a1da"><enum>(a)</enum><header>Definition of eligible entity</header><paragraph id="id87ABDBED1915400B85D7528D68121ACB"><enum>(1)</enum><header>In general</header><text>In this section, the term <quote>eligible entity</quote> means an owner of an AFO.</text></paragraph><paragraph id="id3751A34998AB451EA7570BAAE983C1D5"><enum>(2)</enum><header>Exclusion</header><text>In this section, the term <quote>eligible entity</quote> does not include an owner of an AFO that is an integrator.</text></paragraph></subsection><subsection id="id4CEB5A6C78E5413F984085E4B84C224B"><enum>(b)</enum><header>Establishment</header><text>Not later than 180 days after the date of enactment of this Act, the Secretary shall carry out a program to provide grants to eligible entities to permanently transition from operating an AFO to carrying out other activities on the property on which the AFO is located.</text></subsection><subsection id="id7CA56AC870D042F1A5657EA2C9DF8159"><enum>(c)</enum><header>Payments</header><text>Under the program established under subsection (b), the Secretary shall provide grants to eligible entities—</text><paragraph id="id0a333f9f18c6463a86b2aae09f88d3b0"><enum>(1)</enum><text>to partially or fully pay off any outstanding debt of the eligible entity that was incurred to construct and operate the AFO; and</text></paragraph><paragraph id="idf08232a70c4840a2988d949bdb3cf6fc"><enum>(2)</enum><text>to cover costs relating to the transition of the property on which the AFO is located to be used for alternative agriculture activities, such as raising pasture-based livestock, growing specialty crops, or organic commodity production.</text></paragraph></subsection><subsection id="idF3DE32B9005447D8A9C90FC63EC176CA"><enum>(d)</enum><header>Requirement</header><text>As a condition of receiving a grant under this section, an eligible entity shall provide to the Secretary a working lands easement on the property on which the AFO is located that prohibits—</text><paragraph commented="no" id="id9dde7eca20c2437db28615055713fb20"><enum>(1)</enum><text>the operation of the AFO and any associated waste management system on the easement area; and</text></paragraph><paragraph commented="no" id="id25419c84ff2c4a749ef84dffad39059d"><enum>(2)</enum><text>the use of the easement area for a spray field or land application of manure at rates exceeding crop agronomic requirements for nitrogen and phosphorus.</text></paragraph></subsection><subsection id="id7cb38903dbb74609b68ff987cbde24cd"><enum>(e)</enum><header>Funding</header><paragraph id="id6168663B66D74229B82644712D55EFC6"><enum>(1)</enum><header>In general</header><text>On the first October 1 after the date of enactment of this Act, and on each October 1 thereafter, out of any funds in the Treasury not otherwise appropriated, the Secretary of the Treasury shall transfer to the Secretary to carry out this section $10,000,000,000, to remain available until expended.</text></paragraph><paragraph id="idE0C4EFBC898A42D3882B6DA4D80EEE49"><enum>(2)</enum><header>Receipt and acceptance</header><text>The Secretary shall be entitled to receive, shall accept, and shall use to carry out this section the funds transferred under paragraph (1), without further appropriation.</text></paragraph></subsection></section><section id="idbd71fc4eb4cf45eb894d1cc8d91aa63e"><enum>104.</enum><header>Integrator responsibilities and liabilities</header><subsection id="iddf02108106df446ca1de2066e5051164"><enum>(a)</enum><header>Responsibilities and liabilities</header><paragraph id="idB166A0EABBED41AF803F93FE7FDC27FC"><enum>(1)</enum><header>In general</header><text>An integrator that exercises substantial operational control of an AFO, as described in subsection (b), shall be responsible and liable for, with respect to the operation of the AFO—</text><subparagraph id="idea48d39519b94b099fe1cee927d31642"><enum>(A)</enum><text>the disposal of dead animals;</text></subparagraph><subparagraph id="id1ff4535d28a94992a48c700ceed3793e"><enum>(B)</enum><text>the disposal of manure, excrement, and other waste;</text></subparagraph><subparagraph id="idc715d6c0b729437aa0669a7284f2b80e"><enum>(C)</enum><text>the discharge or release of any air pollutant, including greenhouse gases, from any source located on or activity occurring at the AFO, including enteric processes, manure, and animal feed;</text></subparagraph><subparagraph id="id09a0c7684c2e4387ba8ac6bfa4b54d5d"><enum>(D)</enum><text>the discharge of any pollutant to groundwater or any surface water body, including the production area, manure storage, manure land application area (crop field), tile drain, and agricultural stormwater runoff of the AFO;</text></subparagraph><subparagraph id="id1374ff4d5f3442e4b0ff613bb8781f70"><enum>(E)</enum><text>any harm suffered by the contract grower of the AFO or a third party from any activity described in subparagraphs (A) through (D), or from any other on-property or off-property contamination, including following an extreme weather event; and</text></subparagraph><subparagraph id="id74b4144562974e77909dad20f512f8a4"><enum>(F)</enum><text>any adverse health impacts, property value diminution, and loss of use and enjoyment of property suffered by neighboring residents of the AFO due to the operation of the AFO.</text></subparagraph></paragraph><paragraph id="id03b1877070e445ebb53d85d1977e3a8b"><enum>(2)</enum><header>Duties not transferable</header><text>The responsibilities and liabilities of an integrator under this subsection shall be nondelegable and non­trans­fer­able to any third party, including any contract grower.</text></paragraph></subsection><subsection commented="no" id="id3ec9bffa18aa4cc7872d551a0f71bb39"><enum>(b)</enum><header>Substantial operational control</header><text>An integrator exercises substantial operational control of an AFO if the integrator—</text><paragraph commented="no" id="idD04FF06FDC934E139164991E5B449BA4"><enum>(1)</enum><text>holds an ownership interest in the livestock or poultry, land, or other capital of the AFO;</text></paragraph><paragraph commented="no" id="id48A7B369BC004114B4EC444CC4326E30"><enum>(2)</enum><text>through a growout contract, marketing arrangement, or other arrangement, or through direct supervision of, or on-site participation in, activities at the AFO, controls—</text><subparagraph commented="no" id="id91D13282C40A4650AB668306CE7C444A"><enum>(A)</enum><text>the activity of persons working at the AFO;</text></subparagraph><subparagraph commented="no" id="idCF20B55AD1814340964DCB3131FAEAAD"><enum>(B)</enum><text>the operation, management, or waste management practices of the AFO; or</text></subparagraph><subparagraph commented="no" id="id60BC7327E122416EA31F1EBDCD9661C2"><enum>(C)</enum><text>the manner in which livestock or poultry at the AFO are grown, fed, watered, ventilated, heated, cooled, or medicated;</text></subparagraph></paragraph><paragraph commented="no" id="id267A0B7B03F847A9B72016B6267AE890"><enum>(3)</enum><text>supplies feed, pharmaceuticals, or other inputs to the AFO; or</text></paragraph><paragraph commented="no" id="id5DCD6126573947DD87A1336F5C88BD14"><enum>(4)</enum><text>requires a capital investment from the contract grower of the AFO for erecting or expanding facilities at the AFO.</text></paragraph></subsection><subsection id="id1e9fb71782a446e9963dccf90f1caa3e"><enum>(c)</enum><header>Civil actions</header><paragraph id="iddcfc8bf798694388a0b18ce3d9e5f511"><enum>(1)</enum><header>In general</header><text>Any person may—</text><subparagraph id="idB2E68B3E449C49B091D5F3E34B4B6F5F"><enum>(A)</enum><text>bring a civil action against an integrator in an appropriate court to redress any violation of this section or any other law relating to the activities described in this section; and</text></subparagraph><subparagraph id="idBB90F912716C4D1EBD72CD6B0B947162"><enum>(B)</enum><text>obtain appropriate relief in a civil action under subparagraph (A).</text></subparagraph></paragraph><paragraph id="id96715827AEB447E0976ED0CF80C06C2B"><enum>(2)</enum><header>Attorney's fees for plaintiff</header><text>The court shall award a reasonable attorney’s fee as part of the costs to a prevailing plaintiff in a civil action under this subsection.</text></paragraph><paragraph commented="no" id="id9dbd863054ea424e87e707bdd89a87c0"><enum>(3)</enum><header>No preemption</header><text>Nothing in this subsection preempts, alters, displaces, abridges, or supplants any claim or remedy available under any State or Federal law, including common law, that provides a remedy for civil relief.</text></paragraph></subsection><subsection id="id64DF045BC1784B68846BA6AFAE8D0011"><enum>(d)</enum><header>AFO discharges</header><text>Section 402 of the Federal Water Pollution Control Act (<external-xref legal-doc="usc" parsable-cite="usc/33/1342">33 U.S.C. 1342</external-xref>) is amended by adding at the end the following:</text><quoted-block style="OLC" act-name="" id="id3B9B7CC85D2D4CA7838D9C8F4C1CC900"><subsection id="id9E58D6DF6CBA4D92B7F827AECDF05096"><enum>(t)</enum><header>AFO discharges</header><text>The Administrator shall require that all persons exercising substantial operational control (as described in section 104(b) of the <short-title>Farm System Reform Act of 2023</short-title>) over an animal feeding operation (as defined in section 101 of that Act) jointly obtain a permit under this section for a discharge from the animal feeding operation.</text></subsection><after-quoted-block>.</after-quoted-block></quoted-block></subsection></section></title><title id="id716D4B7C5A124C6384643DA0FC24C482" style="OLC"><enum>II</enum><header>Amendments to Packers and Stockyards Act, 1921</header><section commented="no" id="id66883acbd95547719db3055bd53a30aa"><enum>201.</enum><header>Definitions</header><text display-inline="no-display-inline">Section 2(a) of the Packers and Stockyards Act, 1921 (<external-xref legal-doc="usc" parsable-cite="usc/7/182">7 U.S.C. 182(a)</external-xref>), is amended—</text><paragraph id="id9a0f8c3b935e4b52bcb9e6ec0c89835d"><enum>(1)</enum><text>in paragraph (8), by striking <quote>for slaughter</quote> and all that follows through <quote>of such poultry</quote> and inserting <quote>under a poultry growing arrangement, regardless of whether the poultry is owned by that person or another person</quote>;</text></paragraph><paragraph id="id9ef454ebed4a48fda18a969f5c73f552"><enum>(2)</enum><text>in paragraph (9), by striking <quote>and cares for live poultry for delivery, in accord with another's instructions, for slaughter</quote> and inserting <quote>or cares for live poultry in accordance with the instructions of another person</quote>;</text></paragraph><paragraph id="idC3D76D99F2C24894BF928BB401A1AA71"><enum>(3)</enum><text>in each of paragraphs (1) through (9), by striking the semicolon at the end and inserting a period;</text></paragraph><paragraph commented="no" display-inline="no-display-inline" id="idd0efce98f30d49c08a137b8f0b7294f8"><enum>(4)</enum><text>in paragraph (10)—</text><subparagraph commented="no" display-inline="no-display-inline" id="id969055F4CCEF473F919366542AE7FB28"><enum>(A)</enum><text>by striking <quote>for the purpose of either slaughtering it or selling it for slaughter by another</quote>; and</text></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id14691AB6F7B34357A4836863792D096F"><enum>(B)</enum><text>by striking <quote>; and</quote> at the end and inserting a period; and</text></subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="idECD201611A6C44AA8A220B5930A0300A"><enum>(5)</enum><text>by adding at the end the following:</text><quoted-block id="HAD39E27124AE4D1185DBCA5BFB00A4BD"><paragraph id="H756AD5B6CBA54058863DBE67AE7D0389"><enum>(15)</enum><header>Formula price</header><subparagraph id="HDE35D934E67A4515B46048A510734E09"><enum>(A)</enum><header>In general</header><text>The term <term>formula price</term> means any price term that establishes a base from which a purchase price is calculated on the basis of a price that will not be determined or reported until a date that is after the date on which the forward price is established.</text></subparagraph><subparagraph id="HA4C0856A132E41F5903FB85828D02EE0"><enum>(B)</enum><header>Exclusion</header><text>The term <term>formula price</term> does not include—</text><clause id="H009005FBA6194651ADA342A6DE472B2D"><enum>(i)</enum><text>any price term that establishes a base from which a purchase price is calculated on the basis of a futures market price; or</text></clause><clause id="H1370182050C1408199D1EF31DCCD25D"><enum>(ii)</enum><text>any adjustment to the base for quality, grade, or other factors relating to the value of livestock or livestock products that are readily verifiable market factors and are outside the control of the packer.</text></clause></subparagraph></paragraph><paragraph id="H6AFA2E3776264B258BC0DC9BCBD1E977"><enum>(16)</enum><header>Forward contract</header><text>The term <term>forward contract</term> means an oral or written contract for the purchase of livestock that provides for the delivery of the livestock to a packer at a date that is more than 7 days after the date on which the contract is entered into, without regard to whether the contract is for—</text><subparagraph id="HF71E947B0A2C4AD68763508215BE79C8"><enum>(A)</enum><text>a specified lot of livestock; or</text></subparagraph><subparagraph id="H3701E2A77A464E8395744DA262DFC281"><enum>(B)</enum><text>a specified number of livestock over a certain period of time.</text></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></section><section id="id68b206ba105148738e935a5e206b46de"><enum>202.</enum><header>Unlawful practices</header><subsection id="idF3A71097F70A4977B2DEE7793818FB43"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">Section 202 of the Packers and Stockyards Act, 1921 (<external-xref legal-doc="usc" parsable-cite="usc/7/192">7 U.S.C. 192</external-xref>), is amended—</text><paragraph id="id3967546224F845129FAD362338BBDB62"><enum>(1)</enum><text>by redesignating subsections (a) through (f) and (g) as paragraphs (1) through (6) and (10), respectively, and indenting appropriately;</text></paragraph><paragraph id="id2ADACF482D7443C599BF3508E02FB5B8"><enum>(2)</enum><text>by striking the section designation and all that follows through <quote>It shall be</quote> in the matter preceding paragraph (1) (as so redesignated) and inserting the following:</text><quoted-block style="OLC" display-inline="no-display-inline" id="idF7DDCA4C4FCD4BF8911DEC92BC4A3DCF"><section id="id758497FABB9245D8BC7353B8A5583844"><enum>202.</enum><header>Unlawful acts</header><subsection id="id73C08783AD3C455C947FD14651995398"><enum>(a)</enum><header>In general</header><text>It shall be</text></subsection></section><after-quoted-block>;</after-quoted-block></quoted-block></paragraph><paragraph id="idB382177AD5374055B770A8BCE551A950"><enum>(3)</enum><text>in subsection (a)—</text><subparagraph id="idA6D6472447B0448FA8BF765C103E8045"><enum>(A)</enum><text>in the matter preceding paragraph (1) (as so redesignated), by striking <quote>to:</quote> and inserting <quote>to do any of the following:</quote>;</text></subparagraph><subparagraph id="idB2E954CF4F834EFB877809E242FFBBFE"><enum>(B)</enum><text>in each of paragraphs (1) through (6) (as so redesignated), by striking <quote>; or</quote> each place it appears and inserting a period;</text></subparagraph><subparagraph id="id0049FB5998B44E739693756F2FA4D044"><enum>(C)</enum><text>in paragraph (6) (as so redesignated)—</text><clause id="id057c5cec33b1498c9af1e2e5c7dace18"><enum>(i)</enum><text>by striking <quote>(1)</quote> and inserting <quote>(A)</quote>;</text></clause><clause id="idf45ded4800864b4e89b94a13cd1836b9"><enum>(ii)</enum><text>by striking <quote>(2)</quote> and inserting <quote>(B)</quote>; and</text></clause><clause id="id901138b345b449fa95f723072e8f511b"><enum>(iii)</enum><text>by striking <quote>(3)</quote> and inserting <quote>(C)</quote>;</text></clause></subparagraph><subparagraph id="idF353498228894A27B6D2A51D576DA91B"><enum>(D)</enum><text>by inserting after paragraph (6) the following:</text><quoted-block style="OLC" display-inline="no-display-inline" id="id9A609B187D6341C6B6663678C8CC036A"><paragraph id="idC016E7D6F73F4F648444E8D6D618077A"><enum>(7)</enum><text>Use, in effectuating any sale of livestock, a forward contract that—</text><subparagraph id="H20BFA452C70B4B24A1BFBC87E6A0CF1C"><enum>(A)</enum><text>does not contain a firm base price that may be equated to a fixed dollar amount on the date on which the forward contract is entered into;</text></subparagraph><subparagraph id="HA92FCFFC0BBA4D5099EC4B16F902DB40"><enum>(B)</enum><text>is not offered for bid in an open, public manner under which—</text><clause id="HCEDDFA81B6174102B0DC6ECA4EDE06B0"><enum>(i)</enum><text>buyers and sellers have the opportunity to participate in the bid;</text></clause><clause id="H4769922F2857493386FA9D672B044391"><enum>(ii)</enum><text>more than 1 blind bid is solicited; and</text></clause><clause id="HEEC0D2F8133344FEAE2045A7D432CC3"><enum>(iii)</enum><text>buyers and sellers may witness bids that are made and accepted;</text></clause></subparagraph><subparagraph id="HAD91EC8A39B6488EB31864F187AAE0D5"><enum>(C)</enum><text>is based on a formula price; or</text></subparagraph><subparagraph id="H6995D7D0BF944B74A353AC1F40B84C01"><enum>(D)</enum><text>provides for the sale of livestock in a quantity in excess of—</text><clause id="H715524320E754326A6A62885A7B2BE69"><enum>(i)</enum><text>in the case of cattle, 40 cattle;</text></clause><clause id="H1447788377044CEBB9E9CD30BC3610D6"><enum>(ii)</enum><text>in the case of swine, 30 swine; and</text></clause><clause id="H527BBD33841F43C0B35CB5E4CE2BFFBB"><enum>(iii)</enum><text>in the case of another type of livestock, a comparable quantity of that type of livestock, as determined by the Secretary.</text></clause></subparagraph></paragraph><paragraph id="id6C4174B2A6714648970934FE0F509581"><enum>(8)</enum><text>Own or feed livestock directly, through a subsidiary, or through an arrangement that gives a packer operational, managerial, or supervisory control over the livestock, or over the farming operation that produces the livestock, to such an extent that the producer of the livestock is not materially participating in the management of the operation with respect to the production of the livestock, except that this paragraph shall not apply to—</text><subparagraph id="idF6DD2DF3F11A44D8B0FA7D4718C22390"><enum>(A)</enum><text>an arrangement entered into not more than 7 business days before slaughter of the livestock by a packer, a person acting through the packer, or a person that directly or indirectly controls, or is controlled by or under common control with, the packer;</text></subparagraph><subparagraph id="idD83D0A418CA3491C8C882794E2D41E17"><enum>(B)</enum><text>a cooperative or entity owned by a cooperative, if a majority of the ownership interest in the cooperative is held by active cooperative members that—</text><clause id="id24A43FAC032A42D28E2204E588630ABF"><enum>(i)</enum><text>own, feed, or control the livestock; and</text></clause><clause id="id9B1A50FE2FFB4DF1B537DEF589FC3514"><enum>(ii)</enum><text>provide the livestock to the cooperative for slaughter;</text></clause></subparagraph><subparagraph id="id23AAF7BF9D934C139AF4879613664564"><enum>(C)</enum><text>a packer that is not required to report to the Secretary on each reporting day (as defined in section 212 of the Agricultural Marketing Act of 1946 (<external-xref legal-doc="usc" parsable-cite="usc/7/1635a">7 U.S.C. 1635a</external-xref>)) information on the price and quantity of livestock purchased by the packer; or</text></subparagraph><subparagraph id="id61ED511AF4044F1396BBEEACC0B3D7C4"><enum>(D)</enum><text>a packer that owns only 1 livestock processing plant.</text></subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="id6c2f16651b5544dca43240496665cc19"><enum>(9)</enum><text display-inline="yes-display-inline">Take any action that adversely affects or is likely to adversely affect competition, regardless of whether there is a business justification for the action.</text></paragraph><after-quoted-block>; and</after-quoted-block></quoted-block></subparagraph><subparagraph id="id520FDC892E264BA0B701DD26358A0A5A"><enum>(E)</enum><text>in paragraph (10) (as so redesignated), by striking <quote>subdivision (a), (b), (c), (d), or (e)</quote> and inserting <quote>paragraphs (1) through (9)</quote>; and</text></subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="id4E448AB83BFE4E0E8CCA73232C7DF3B5"><enum>(4)</enum><text>by adding at the end the following:</text><quoted-block style="OLC" display-inline="no-display-inline" id="id2F99B8D93FF74E6F8D9FCDD4BC288F76"><subsection id="id5E4CEE5294F0452D96B0ED0938B5244B"><enum>(b)</enum><header>Unfair, discriminatory, and deceptive practices and devices</header><text display-inline="yes-display-inline">Acts by a packer, swine contractor, or live poultry dealer that violate subsection (a)(1) include the following:</text><paragraph id="id474af8e1ae8d4f248c86059b1a8f6a5a"><enum>(1)</enum><text>Refusal to provide, on the request of a livestock producer, swine production contract grower, or poultry grower with which the packer, swine contractor, or live poultry dealer has a marketing or delivery contract, the relevant statistical information and data used to determine the compensation paid to the livestock producer, swine production contract grower, or poultry grower, as applicable, under the contract, including—</text><subparagraph id="id0ff0f9672cc14c619e0ea6a8a5e09e36"><enum>(A)</enum><text>feed conversion rates by house, lot, or pen;</text></subparagraph><subparagraph id="id5a964b71bb524fb2bb6a42f40fe5f0d2"><enum>(B)</enum><text>feed analysis;</text></subparagraph><subparagraph id="idda9ab9432d924af3bea54ee514b7b2f4"><enum>(C)</enum><text>breeder history;</text></subparagraph><subparagraph id="id380d4a81bfc143278977dada22e33d54"><enum>(D)</enum><text>quality grade;</text></subparagraph><subparagraph id="idf36d1554ee4c429fa74bae6cbc4ed67b"><enum>(E)</enum><text>yield grade; and</text></subparagraph><subparagraph id="id21568b63b56544fc9d9919ab47f0b1e5"><enum>(F)</enum><text>delivery volume for any certified branding program (such as programs for angus beef or certified grassfed or Berkshire pork).</text></subparagraph></paragraph><paragraph id="id39008bd768a6415e87997b61d326cdec"><enum>(2)</enum><text>Conduct or action that limits or attempts to limit by contract the legal rights and remedies of a livestock producer, swine production contract grower, or poultry grower, including the right—</text><subparagraph id="idf8da1a6dd93a46599f0ed9469fc8424d"><enum>(A)</enum><text>to a trial by jury, unless the livestock producer, swine production contract grower, or poultry grower, as applicable, is voluntarily bound by an arbitration provision in a contract;</text></subparagraph><subparagraph id="ide6aa6a4266584760b6575eb027c977d1"><enum>(B)</enum><text>to pursue all damages available under applicable law; and</text></subparagraph><subparagraph id="id6c042dd5c8634728a9a2ab3ddce5023e"><enum>(C)</enum><text>to seek an award of attorneys' fees, if available under applicable law.</text></subparagraph></paragraph><paragraph id="id4175c14b395542e092353f0f20f572c9"><enum>(3)</enum><text>Termination of a poultry growing arrangement or swine production contract with no basis other than an allegation that the poultry grower or swine production contract grower failed to comply with an applicable law, rule, or regulation.</text></paragraph><paragraph id="id387b1ae4c29246649adbd21687eab664"><enum>(4)</enum><text>A representation, omission, or practice that is likely to mislead a livestock producer, swine production contract grower, or poultry grower regarding a material condition or term in a contract or business transaction.</text></paragraph></subsection><subsection commented="no" id="id0A71B4F56B9043B7897665328D1A945E"><enum>(c)</enum><header>Undue or unreasonable preferences, advantages, prejudices, and disadvantages</header><paragraph commented="no" id="idCB344519DA664AF3973FCB7F868DEA30"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">Acts by a packer, swine contractor, or live poultry dealer that violate subsection (a)(2) include the following:</text><subparagraph id="id9081b920d60f4affbd001b5b0cfdd514"><enum>(A)</enum><text>A retaliatory action (including coercion or intimidation) or the threat of retaliatory action—</text><clause id="id6DD7A4E9E9EF46AA887B09D677A374BF"><enum>(i)</enum><text>in connection with the execution, termination, extension, or renewal of a contract or agreement with a livestock producer, swine production contract grower, or poultry grower aimed to discourage the exercise of the rights of the livestock producer, swine production contract grower, or poultry grower under this Act or any other law; and</text></clause><clause id="id0C4D36A4511D4F09892EE95BF11A98FB"><enum>(ii)</enum><text>in response to lawful communication (including as described in paragraph (2)), association, or assertion of rights by a livestock producer, swine production contract grower, or poultry grower.</text></clause></subparagraph><subparagraph id="id646FA79D07E7427982CEC1A19A6A4FAC"><enum>(B)</enum><text>Use of the tournament system for poultry as described in paragraph (3).</text></subparagraph></paragraph><paragraph commented="no" id="id854ba61358e141e1806f41622e023872"><enum>(2)</enum><header>Lawful communication described</header><text>A lawful communication referred to in paragraph (1)(A)(ii) includes—</text><subparagraph commented="no" id="idb7d955602d684116baec978f5437a28f"><enum>(A)</enum><text>a communication with officials of a Federal agency or Members of Congress;</text></subparagraph><subparagraph commented="no" id="idb026bee8999d4d16ae1293e724ce49d4"><enum>(B)</enum><text>any lawful disclosure that demonstrates a reasonable belief of a violation of this Act or any other law; and</text></subparagraph><subparagraph commented="no" id="idd0157471688b4b4699b55d0c9c3ef740"><enum>(C)</enum><text>any other communication that assists in carrying out the purposes of this Act.</text></subparagraph></paragraph><paragraph id="id87417874338b460691cd8284b6d323d6"><enum>(3)</enum><header>Use of tournament system for poultry</header><subparagraph id="id0455a5ac97c94b25b114fd0716a938ee"><enum>(A)</enum><header>In general</header><text>Subject to subparagraph (B), a live poultry dealer shall be in violation of subsection (a)(2) if the live poultry dealer determines the formula for calculating the pay of a poultry grower in a tournament group by comparing the performance of the birds of other poultry growers in the group using factors outside the control of the poultry grower and within the control of the live poultry dealer.</text></subparagraph><subparagraph id="idF63716A77EAA47F79EFE82AF43741B79"><enum>(B)</enum><header>Exception</header><text>Under subparagraph (A), a live poultry dealer shall not be found in violation of subsection (a)(2) if the live poultry dealer demonstrates through clear and convincing evidence that the inputs and services described in subparagraph (C) that were used in the comparative evaluation were substantially the same in quality, quantity, and timing, as applicable, for all poultry growers in the tournament group.</text></subparagraph><subparagraph id="id41adc6bc00ee42509a6aa1cb2e96a0ec"><enum>(C)</enum><header>Inputs and services described</header><text>The inputs and services referred to in subparagraph (B) include, with respect to poultry growers in the same tournament group—</text><clause id="idc95f95dd09e74ddeab5346b8edcbced9"><enum>(i)</enum><text>the quantity, breed, sex, and age of chicks delivered to each poultry grower;</text></clause><clause id="id6507c9a39710461083c5d1ca3d59c3a9"><enum>(ii)</enum><text>the breed and age of the breeder flock from which chicks are drawn for each poultry grower;</text></clause><clause id="idac4968f57dab4fda99b8adf47d69aaff"><enum>(iii)</enum><text>the quality, type (such as starter feed), and quantity of feed delivered to each poultry grower;</text></clause><clause id="id1466e62cd1d14a1b92307199be485317"><enum>(iv)</enum><text>the quality of and access to medications for the birds of each poultry grower;</text></clause><clause id="id8cbcea041728465ebe647d9c5d74bd3c"><enum>(v)</enum><text>the number of birds in a flock delivered to each poultry grower;</text></clause><clause id="id9a6d022ed6a14f0a985e4a2c8ba12270"><enum>(vi)</enum><text>the timing of the pick-up of birds for processing (including the age of the birds and the number of days that the birds are in the care of the poultry grower) for each poultry grower;</text></clause><clause id="idb3d814ddb8924797ae59dc32139c370f"><enum>(vii)</enum><text>the death loss of birds during pick-up, transport, and time spent at the processing plant for each poultry grower;</text></clause><clause id="idd010ba6b599b4764882ad1abd7f919d6"><enum>(viii)</enum><text>condemnations of parts of birds due to actions in processing for each poultry grower;</text></clause><clause id="id8da8428f93334a15810d3c82535aa599"><enum>(ix)</enum><text>condemnations of whole birds due to the fault of the poultry grower;</text></clause><clause id="ida7c21f4f6f134d9bb5ca4ed4c99a8305"><enum>(x)</enum><text>the death loss of birds due to the fault of the poultry grower;</text></clause><clause id="idbf11bbd44b7f4c83aa4a35c24440eeee"><enum>(xi)</enum><text>the stated reasons for the cause of the death losses and condemnations described in clauses (vii) through (x);</text></clause><clause id="id1b5762e30dd74c868e4fbf5f9e3901f2"><enum>(xii)</enum><text>the type and classification of each poultry grower; and</text></clause><clause id="id0fa18a1af5174ef190b0b161b5e05c92"><enum>(xiii)</enum><text>any other input or service that may have an impact on feed conversion to weight gain efficiency or the life span of the birds of each poultry grower.</text></clause></subparagraph></paragraph></subsection><subsection id="id8C88BAA30F2C47299C74391300E91C81"><enum>(d)</enum><header>Harm to competition not required</header><text>In determining whether an act, device, or conduct is a violation under paragraph (1) or (2) of subsection (a), a finding that the act, device, or conduct adversely affected or is likely to adversely affect competition is not required.</text></subsection><after-quoted-block>. </after-quoted-block></quoted-block></paragraph></subsection><subsection id="id1d06892ac2794bb2ab9f4d042bbaa6ea"><enum>(b)</enum><header>Effective date</header><paragraph id="id4ff7afb06b61422c89c9c4fe97f8d16d"><enum>(1)</enum><header>In general</header><text>Subject to paragraph (2), paragraph (8) of section 202(a) of the Packers and Stockyards Act, 1921 (<external-xref legal-doc="usc" parsable-cite="usc/7/192">7 U.S.C. 192</external-xref>) (as designated by subsection (a)(2)), shall take effect on the date of enactment of this Act.</text></paragraph><paragraph id="id2c2ad4c3c3be40138d34e1e56cf46f5e"><enum>(2)</enum><header>Transition rules</header><text>In the case of a packer that, on the date of enactment of this Act, owns, feeds, or controls livestock intended for slaughter in violation of paragraph (8) of section 202(a) of the Packers and Stockyards Act, 1921 (<external-xref legal-doc="usc" parsable-cite="usc/7/192">7 U.S.C. 192</external-xref>) (as designated by subsection (a)(2)), that paragraph shall take effect—</text><subparagraph id="idcbb311e452454ec4a5586d219d005f3c"><enum>(A)</enum><text>in the case of a packer of swine, beginning on the date that is 18 months after the date of enactment of this Act; and</text></subparagraph><subparagraph id="id168654e468444eeaa279d75d10176b65"><enum>(B)</enum><text>in the case of a packer of any other type of livestock, beginning not later than 180 days after the date of enactment of this Act, as determined by the Secretary.</text></subparagraph></paragraph></subsection></section><section section-type="subsequent-section" id="id23DB75AB011447AF85A5C2119D4DD0A0"><enum>203.</enum><header>Spot market purchases of livestock by packers</header><text display-inline="no-display-inline">The Packers and Stockyards Act, 1921, is amended by inserting after section 202 (<external-xref legal-doc="usc" parsable-cite="usc/7/192">7 U.S.C. 192</external-xref>) the following:</text><quoted-block style="OLC" display-inline="no-display-inline" id="ida17fc3dacb5e4a318a0c537c93e05607"><section id="idff86cc72140f4a6ab98ade0adc14f1bb"><enum>202A.</enum><header>Spot market purchases of livestock by packers</header><subsection id="id1151b46cddb14ce28187875423251c98"><enum>(a)</enum><header>Definitions</header><text>In this section:</text><paragraph id="id537a58af7f9c4047bdf2badadd3c050a"><enum>(1)</enum><header>Covered packer</header><subparagraph id="id27d473d3853e408c8761d8be69b7750e"><enum>(A)</enum><header>In general</header><text>The term <term>covered packer</term> means a packer that is required under subtitle B of the Agricultural Marketing Act of 1946 (<external-xref legal-doc="usc" parsable-cite="usc/7/1635">7 U.S.C. 1635 et seq.</external-xref>) to report to the Secretary each reporting day information on the price and quantity of livestock purchased by the packer.</text></subparagraph><subparagraph id="id02eadd7808874020baeed5b1e040e378"><enum>(B)</enum><header>Exclusion</header><text>The term <term>covered packer</term> does not include a packer that owns only 1 livestock processing plant.</text></subparagraph></paragraph><paragraph id="idafc725679ef1464e8d2123eb5d096384"><enum>(2)</enum><header>Nonaffiliated producer</header><text>The term <term>nonaffiliated producer</term> means a producer of livestock—</text><subparagraph id="idac0739f768d243b5b5e6b2f3a8fbe031"><enum>(A)</enum><text>that sells livestock to a packer;</text></subparagraph><subparagraph id="id2b4e1dbfe4934002906fddb6d5fc506b"><enum>(B)</enum><text>that has less than 1 percent equity interest in the packer;</text></subparagraph><subparagraph id="idf381d3b6fe3c401cb0ebc9a00d182656"><enum>(C)</enum><text>that has no officers, directors, employees, or owners that are officers, directors, employees, or owners of the packer;</text></subparagraph><subparagraph id="idf5a54508029b49a1ab54dc2a8ffd063e"><enum>(D)</enum><text>that has no fiduciary responsibility to the packer; and</text></subparagraph><subparagraph id="id0926aa2c441741a786c9f4e934a45d3c"><enum>(E)</enum><text>in which the packer has no equity interest.</text></subparagraph></paragraph><paragraph id="idd60d4a58127a4d3190eaf37f7747ff99"><enum>(3)</enum><header>Spot market sale</header><subparagraph id="idef076ec959914615a43a4d78bd37b009"><enum>(A)</enum><header>In general</header><text>The term <term>spot market sale</term> means a purchase and sale of livestock by a packer from a producer—</text><clause id="id3d6ae62fa7414e00b0a9870b1da35a3e"><enum>(i)</enum><text>under an agreement that specifies a firm base price that may be equated with a fixed dollar amount on the date the agreement is entered into;</text></clause><clause id="id64677b8d39bc4103b911450ea2b69b56"><enum>(ii)</enum><text>under which the livestock are slaughtered not more than 7 days after the date on which the agreement is entered into; and</text></clause><clause id="iddfcd0aaf5a0545fb9f09533eb2020f8b"><enum>(iii)</enum><text>under circumstances in which a reasonable competitive bidding opportunity exists on the date on which the agreement is entered into.</text></clause></subparagraph><subparagraph id="id2e03873a370f4b0cb60273e549ce8127"><enum>(B)</enum><header>Reasonable competitive bidding opportunity</header><text>For the purposes of subparagraph (A)(iii), a reasonable competitive bidding opportunity shall be considered to exist if—</text><clause id="id4cdf59496bfd4aa3816d504b9a9c2810"><enum>(i)</enum><text>no written or oral agreement precludes the producer from soliciting or receiving bids from other packers; and</text></clause><clause id="id6deef161813044718ddb76000eb3394c"><enum>(ii)</enum><text>no circumstance, custom, or practice exists that—</text><subclause id="idf1ad4166065d4c5fb1406a3bc943f798"><enum>(I)</enum><text>establishes the existence of an implied contract (as determined in accordance with the Uniform Commercial Code); and</text></subclause><subclause id="idb9ec9e0209a74637af320b84236f49a9"><enum>(II)</enum><text>precludes the producer from soliciting or receiving bids from other packers.</text></subclause></clause></subparagraph></paragraph></subsection><subsection id="idcb35c2d3195d4ade9d963d446c7da688"><enum>(b)</enum><header>General rule</header><text>Of the quantity of livestock that is slaughtered by a covered packer during each reporting day in each plant, the covered packer shall slaughter not less than the applicable percentage specified in subsection (c) of the quantity through spot market sales from nonaffiliated producers.</text></subsection><subsection id="ida8c4a8d77f7a4e5d9decdfdad0802a45"><enum>(c)</enum><header>Applicable percentages</header><paragraph id="id0ebe02ee70834f21b537867ce87b78ab"><enum>(1)</enum><header>In general</header><text>Except as provided in paragraph (2), the applicable percentage shall be 50 percent.</text></paragraph><paragraph id="idd819ee21fcc54a1e953a4042491e75e5"><enum>(2)</enum><header>Exceptions</header><text>In the case of a covered packer that reported to the Secretary in the 2020 annual report that more than 60 percent of the livestock of the covered packer were committed procurement livestock, the applicable percentage shall be the greater of—</text><subparagraph id="id2f5ec9314a7d452ca0003730f7f486ef"><enum>(A)</enum><text>the difference between the percentage of committed procurement so reported and 100 percent; and</text></subparagraph><subparagraph commented="no" id="id1fb06e98daa849f6b1effed1ae32eab0"><enum>(B)</enum><clause commented="no" display-inline="yes-display-inline" id="idcd04429c5edd4f97b28c876eb2c1736e"><enum>(i)</enum><text>during each of calendar years 2023 and 2024, 20 percent;</text></clause><clause commented="no" id="id9675b38339c2495b9f4eeb395a7c64a4" indent="up1"><enum>(ii)</enum><text>during each of calendar years 2025 and 2026, 30 percent; and</text></clause><clause commented="no" id="id82217600f6b643d294bd61378ddc7dd2" indent="up1"><enum>(iii)</enum><text>during calendar year 2027 and each calendar year thereafter, 50 percent.</text></clause></subparagraph></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="id56ab0d5afd674b869afad577a4020b1d"><enum>(d)</enum><header>Nonpreemption</header><text>This section does not preempt any requirement of a State or political subdivision of a State that requires a covered packer to purchase on the spot market a greater percentage of the livestock purchased by the covered packer than is required under this section.</text></subsection></section><after-quoted-block>. </after-quoted-block></quoted-block></section><section id="id20da10dc58f34fcd8fcb2bdffe14d655"><enum>204.</enum><header>Investigation of live poultry dealers</header><subsection id="idf0a0baf79c2947cb8c364ddaec41e28c"><enum>(a)</enum><header>Administrative enforcement authority over live poultry dealers</header><text>Sections 203, 204, and 205 of the Packers and Stockyards Act, 1921 (<external-xref legal-doc="usc" parsable-cite="usc/7/193">7 U.S.C. 193</external-xref>, 194, 195), are amended by inserting <quote>, live poultry dealer,</quote> after <quote>packer</quote> each place it appears.</text></subsection><subsection id="idb429b1caa1dc4e27a5a02194fc89a7b0"><enum>(b)</enum><header>Authority To request temporary injunction or restraining order</header><text>Section 408(a) of the Packers and Stockyards Act, 1921 (<external-xref legal-doc="usc" parsable-cite="usc/7/228a">7 U.S.C. 228a(a)</external-xref>), is amended by inserting <quote>or poultry care</quote> after <quote>on account of poultry</quote>.</text></subsection><subsection id="id6340a5d56a2a41dea46b9fa1c2fbffef"><enum>(c)</enum><header>Violations by live poultry dealers</header><text>Section 411 of the Packers and Stockyards Act, 1921 (<external-xref legal-doc="usc" parsable-cite="usc/7/228b-2">7 U.S.C. 228b–2</external-xref>), is amended—</text><paragraph id="id2c7a90b817a04c4a89eb1e33778b5825"><enum>(1)</enum><text>in subsection (a), in the first sentence, by striking <quote>any provision of section 207 or section 410 of</quote>; and</text></paragraph><paragraph id="id3cfbf1859d184781bd1f19d87aa7d7a4"><enum>(2)</enum><text>in subsection (b), in the first sentence, by striking <quote>any provisions of section 207 or section 410</quote> and inserting <quote>any provision</quote>.</text></paragraph></subsection></section><section id="ida9e99cf4116041d2a29fd54d9166226a"><enum>205.</enum><header>Award of attorney fees</header><text display-inline="no-display-inline">Section 204 of the Packers and Stockyards Act, 1921 (<external-xref legal-doc="usc" parsable-cite="usc/7/194">7 U.S.C. 194</external-xref>), is amended by adding at the end the following:</text><quoted-block style="OLC" display-inline="no-display-inline" id="id8DFB135162DA4D3A97C78BF556456A0C"><subsection id="idd7a16faf87ae43c7b0bd38c47bf09472"><enum>(i)</enum><header>Attorney's fee</header><text>The court shall award a reasonable attorney’s fee as part of the costs to a prevailing plaintiff in a civil action under this section.</text></subsection><after-quoted-block>. </after-quoted-block></quoted-block></section><section id="id6D37916F37BD4894A1FB285141D3EB88"><enum>206.</enum><header>Technical amendments</header><subsection id="id35431248BC7147E6B1A2FA786BE9596D"><enum>(a)</enum><text>Section 203 of the Packers and Stockyards Act, 1921 (<external-xref legal-doc="usc" parsable-cite="usc/7/193">7 U.S.C. 193</external-xref>), is amended—</text><paragraph id="id0FC8D759BDE4429B9D0A74CAFED91746"><enum>(1)</enum><text>in subsection (a), in the first sentence—</text><subparagraph id="idF234FB4D380445BBB8013F82B8E21F4D"><enum>(A)</enum><text>by striking <quote>he shall cause</quote> and inserting <quote>the Secretary shall cause</quote>; and</text></subparagraph><subparagraph id="id30085FB448E045358145DC950C711262"><enum>(B)</enum><text>by striking <quote>his charges</quote> and inserting <quote>the charges</quote>;</text></subparagraph></paragraph><paragraph id="idE0D191D7F6A04B16A1821C939E922BB4"><enum>(2)</enum><text>in subsection (b), in the first sentence, by striking <quote>he shall make a report in writing in which he shall state his findings</quote> and inserting <quote>the Secretary shall make a report in writing in which the Secretary shall state the findings of the Secretary</quote>; and</text></paragraph><paragraph id="idAD21A85E6DB346DEA2091FAF99CD3534"><enum>(3)</enum><text>in subsection (c), by striking <quote>he</quote> and inserting <quote>the Secretary</quote>.</text></paragraph></subsection><subsection id="id9076EE6A39744B3ABFFC1F7C7142D16F"><enum>(b)</enum><text>Section 204 of the Packers and Stockyards Act, 1921 (<external-xref legal-doc="usc" parsable-cite="usc/7/194">7 U.S.C. 194</external-xref>), is amended—</text><paragraph id="id244C3224D0D44F01A864B274487EB566"><enum>(1)</enum><text>in subsection (a), by striking <quote>he has his</quote> and inserting <quote>the packer, live poultry dealer, or swine contractor has the</quote>;</text></paragraph><paragraph id="idD62586AEECC04E869DA359ABD47D5B65"><enum>(2)</enum><text>in subsection (c), by striking <quote>his officers, directors, agents, and employees</quote> and inserting <quote>the officers, directors, agents, and employees of the packer, live poultry dealer, or swine packer</quote>;</text></paragraph><paragraph id="idDD50BC5A71FE4D9A926DA12CA91E579C"><enum>(3)</enum><text>in subsection (f), in the second sentence—</text><subparagraph id="id7C7F42C6599C408C810EE280589992CB"><enum>(A)</enum><text>by striking <quote>his findings</quote> and inserting <quote>the findings of the Secretary</quote>; and</text></subparagraph><subparagraph id="id88025EE975D2426FB2A7F018CD113BAB"><enum>(B)</enum><text>by striking <quote>he</quote> and inserting <quote>the Secretary</quote>; and</text></subparagraph></paragraph><paragraph id="id176E5C54AE1845CA83731B03F68EBE6C"><enum>(4)</enum><text>in subsection (g), by striking <quote>his officers, directors, agents, and employees</quote> and inserting <quote>the officers, directors, agents, and employees of the packer, live poultry dealer, or swine packer</quote>.</text></paragraph></subsection></section></title><title id="id96872AB971F043C4BE12D929C18C8D65" style="OLC"><enum>III</enum><header>Labeling of meat and dairy products</header><section id="idfb4905573d8a4be3a039693bd9b89eeb"><enum>301.</enum><header>Restoration of mandatory country of origin labeling for beef and pork; inclusion of dairy products</header><subsection id="id81BA024AF7C7433A9519B2AF280EC687"><enum>(a)</enum><header>Definitions</header><text>Section 281 of the Agricultural Marketing Act of 1946 (<external-xref legal-doc="usc" parsable-cite="usc/7/1638">7 U.S.C. 1638</external-xref>) is amended—</text><paragraph id="id127A59C6E1DE47C6B03842FD0F306C04"><enum>(1)</enum><text>by redesignating paragraphs (1), (2) through (5), (6), and (7) as paragraphs (2), (4) through (7), (9), and (10), respectively;</text></paragraph><paragraph id="idE7242C3758504D958A0F88A0FF43E6D3"><enum>(2)</enum><text>by inserting before paragraph (2) (as so redesignated) the following:</text><quoted-block style="OLC" display-inline="no-display-inline" id="idB142C9BBBCD34D8799D42B314E36F160"><paragraph id="id5785818215c34464ba655eb659629a00"><enum>(1)</enum><header>Beef</header><text>The term <term>beef</term> means meat produced from cattle (including veal).</text></paragraph><after-quoted-block>;</after-quoted-block></quoted-block></paragraph><paragraph id="idD46A657AEDDD4D78BD82DF783E4AA74F"><enum>(3)</enum><text>in paragraph (2) (as so redesignated)—</text><subparagraph id="idA3163673692C46A5939DD12560095E90"><enum>(A)</enum><text>in subparagraph (A)—</text><clause id="idB779E62498884603A669596D549F4D75"><enum>(i)</enum><text>in clause (i), by striking <quote>lamb</quote> and inserting <quote>beef, lamb, pork,</quote>;</text></clause><clause id="idC43DA607B8994A898C14D1B88C507DA6"><enum>(ii)</enum><text>in clause (ii), by striking <quote>ground lamb</quote> and inserting <quote>ground beef, ground lamb, ground pork,</quote>;</text></clause><clause id="idECA7D51889274BFDBDC2C1826CF62107"><enum>(iii)</enum><text>in clause (x), by striking <quote>and</quote> at the end;</text></clause><clause id="id9963B0DDA33345178A1F13A9618E3AB2"><enum>(iv)</enum><text>in clause (xi), by striking the period at the end and inserting <quote>; and</quote>; and</text></clause><clause id="id893D4BEA503E4DAEA7C139002C0783C0"><enum>(v)</enum><text>by adding at the end the following:</text><quoted-block style="OLC" display-inline="no-display-inline" id="id341D4C1D32AA49128B5518C731FDC126"><clause id="id596525FC2B784A448386B702E4328FB7"><enum>(xii)</enum><text>dairy products.</text></clause><after-quoted-block>; and</after-quoted-block></quoted-block></clause></subparagraph><subparagraph id="idCF712A073A9447C188CDDFD271D6B85C"><enum>(B)</enum><text>in subparagraph (B), by inserting <quote>(other than clause (xii) of that subparagraph)</quote> after <quote>subparagraph (A)</quote>;</text></subparagraph></paragraph><paragraph id="idF0C1CA72FA9047BABDC8E86F30F73138"><enum>(4)</enum><text>by inserting after paragraph (2) (as so redesignated) the following:</text><quoted-block style="OLC" display-inline="no-display-inline" id="id43B83FA13D8D4544ABDC5FB52AA3C338"><paragraph id="idE5C809ECF9034718A78C934F4422D6C7"><enum>(3)</enum><header>Dairy product</header><text>The term <term>dairy product</term> means—</text><subparagraph id="idFB2FAF907B174DD3BD90A5E2F988D8A5"><enum>(A)</enum><text>fluid milk;</text></subparagraph><subparagraph id="idFB65467A937C45828B1A421457A9180E"><enum>(B)</enum><text>cheese, including cottage cheese and cream cheese;</text></subparagraph><subparagraph id="id1C23B13A9F484DC7B132D2B21B4F05FA"><enum>(C)</enum><text>yogurt;</text></subparagraph><subparagraph id="idDBA7AADF90DE4C1DB10B43EE730D3FDB"><enum>(D)</enum><text>ice cream;</text></subparagraph><subparagraph id="id34B954D540C44C7AA82501BF49E8F6D3"><enum>(E)</enum><text>butter; and</text></subparagraph><subparagraph id="idB107635061DF41F58B378547FDE80C52"><enum>(F)</enum><text>any other dairy product.</text></subparagraph></paragraph><after-quoted-block>; and</after-quoted-block></quoted-block></paragraph><paragraph id="id8588F23C04FE4BF58F9F847E35819677"><enum>(5)</enum><text>by inserting after paragraph (7) (as so redesignated) the following:</text><quoted-block style="OLC" display-inline="no-display-inline" id="idAFB518C95CF64FD3BB9548BC512D5096"><paragraph id="idadd4c283fd624c68a77fcd8dd128fdd3"><enum>(8)</enum><header>Pork</header><text>The term <term>pork</term> means meat produced from hogs.</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection><subsection id="idd1d30f51cc8b4ecca837952499b20062"><enum>(b)</enum><header>Notice of country of origin</header><text>Section 282(a) of the Agricultural Marketing Act of 1946 (<external-xref legal-doc="usc" parsable-cite="usc/7/1638a">7 U.S.C. 1638a(a)</external-xref>) is amended by adding at the end the following:</text><quoted-block style="OLC" display-inline="no-display-inline" id="id33aca936fd3a4059931610e99ef4b6b0"><paragraph id="id15794461b5a244c893dfe0b78611e2a0"><enum>(5)</enum><header>Designation of country of origin for dairy products</header><subparagraph id="id172d73ba51a44ce6b6a415b31004df64"><enum>(A)</enum><header>In general</header><text>A retailer of a covered commodity that is a dairy product shall designate the origin of the covered commodity as—</text><clause id="id0b542ae7c09542f1b179e447e4ea8172"><enum>(i)</enum><text>each country in which or from which the 1 or more dairy ingredients or dairy components of the covered commodity were produced, originated, or sourced; and</text></clause><clause id="iddec7f26c78514e34a8fe38790a9df2c1"><enum>(ii)</enum><text>each country in which the covered commodity was processed.</text></clause></subparagraph><subparagraph id="id99549bb8890e4ec6a1672b4a928dbae3"><enum>(B)</enum><header>State, region, locality of the United States</header><text>With respect to a covered commodity that is a dairy product produced exclusively in the United States, designation by a retailer of the State, region, or locality of the United States where the covered commodity was produced shall be sufficient to identify the United States as the country of origin.</text></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection></section><section commented="no" display-inline="no-display-inline" section-type="subsequent-section" id="id53927c5dfdc64b819856045326f2fe3c"><enum>302.</enum><header>Truth in labeling for meat and meat food products</header><text display-inline="no-display-inline">Section 7 of the Federal Meat Inspection Act (<external-xref legal-doc="usc" parsable-cite="usc/21/607">21 U.S.C. 607</external-xref>) is amended by adding at the end the following:</text><quoted-block style="OLC" display-inline="no-display-inline" id="idD1BE750697364C8F9E0CE25EFF642EE8"><subsection commented="no" display-inline="no-display-inline" id="id6A529A0E9CA54C1EA27020FF724E1551"><enum>(g)</enum><header>Product of the United States</header><text display-inline="yes-display-inline">The label of a meat or meat food product may bear the phrase <quote>Product of U.S.A.</quote>, or any substantially similar word or phrase, only if the meat or meat food product is exclusively derived from 1 or more animals exclusively born, raised, and slaughtered in the United States.</text></subsection><after-quoted-block>.</after-quoted-block></quoted-block></section></title></legis-body></bill> 

