[Senate Report 106-168]
[From the U.S. Government Publishing Office]



                                                       Calendar No. 296
106th Congress                                                   Report
                                 SENATE
 1st Session                                                    106-168

======================================================================



 
                   LIVESTOCK MANDATORY REPORTING ACT

                                _______
                                

               September 30, 1999.--Ordered to be printed

                                _______


Mr. Lugar, from the Committee on Agriculture, Nutrition, and Forestry, 
                        submitted the following

                              R E P O R T

    The Committee on Agriculture, Nutrition, and Forestry, 
having considered an original bill (S. 1672) to amend the 
Agricultural Marketing Act of 1946 to establish a program of 
mandatory market reporting for certain meat packers regarding 
prices, quantities, and terms of sale for the procurement of 
cattle, swine, lambs, and products of such livestock; to 
improve the collection of information regarding the marketing 
of cattle, swine, lambs, and products of such livestock; and 
for other purposes, reports favorably thereon and recommends 
that the bill do pass.

                                CONTENTS

                                                                   Page
 I. Purpose, need, and background.....................................1
II. Section-by-section analysis.......................................2
III.Legislative history and votes in the committee...................15

IV. Regulatory impact statement......................................17
 V. Budgetary impact of the bill.....................................17
VI. Changes in existing law..........................................20

                    I. Purpose, Need, and Background

    Currently, packers and processors are not required to 
report the prices or the terms of sale for the animals they buy 
from producers. Rather, daily sales and price information is 
collected by USDA's Agricultural Marketing Service (AMS) on a 
voluntary basis. However, more and more animals are now being 
sold under private marketing arrangements where prices are not 
publicly disclosed.
    The livestock industry, particularly in the meat packing 
segment, has undergone fundamental changes in recent years, 
both structurally and in its marketing practices. Today, four 
firms slaughter about 80% of all fed cattle, and four firms 
slaughter about 55% of all hogs. Rather than buy on the open 
cash market, these and other large firms increasingly feed 
their own animals or utilize private marketing arrangements, 
such as forward contracts, formula pricing, and exclusive 
purchase agreements--for which prices and terms of sale are not 
publicly disclosed. This makes it difficult for producers, 
particularly smaller-sized ones and those that want to utilize 
open cash markets, to determine the market price. Many 
producers contend that they cannot obtain the data needed to 
quickly and easily compare bids from different packers and to 
negotiate the best possible price for their livestock.
    All four major packers provide daily information to USDA 
about cash price sales and total numbers of livestock involved 
in transactions on a voluntary basis. Daily, USDA reports 
packers' prices and numbers. This information is provided to 
the DTN internet service and several radio news services. USDA 
estimates that 60-65% of cattle transactions, and 40% of hog 
transactions, are reported through this voluntary process. The 
remaining 35% of cattle transactions, and 60% of hog 
transactions, are involved in contract sales and non-reported 
cash sales.
    Various groups have asked for mandatory reporting of 
livestock prices, arguing that meat industry consolidation, and 
the fewer public marketing arrangements that have resulted, 
make it difficult for producers to determine prevailing market 
prices.
    Mandatory price reporting would require packers to provide 
to USDA all terms of their marketing contracts. The price paid 
under these contracts is often determined by formulae, which 
are usually based on futures market prices. USDA has informed 
the Committee that the terms of these contracts seldom change--
often not for a year or more.
    In developing this legislation, the Committee was aware 
that sensitive market information obtained by competing meat 
packers through mandatory price reporting could give a 
competitive advantage to some firms because those firms could 
use the information of smaller firms to offer a higher price, 
thus driving the smaller firms out of business. In a period of 
already limited slaughter capacity, this would have a 
devastating effect on the smaller producer in two ways. First, 
it could lower the price that the producer receives because of 
the lack of available shackle space and, second, the possible 
closure of slaughter facilities would force the producers to 
travel farther to market their animals. To avoid this potential 
problem, the bill requires that market information be 
aggregated, prior to its reporting, so that market participants 
cannot determine the source of any information.

                    II. Section-by-Section Analysis


                 TITLE I--LIVESTOCK MANDATORY REPORTING

    Section 101. Livestock mandatory reporting. Mandatory price 
reporting is added to the Agricultural Marketing Act of 1946 as 
a new Subtitle B.

Chapter 1--Purpose and definitions

    Section 211. Purpose. The purpose of this subtitle is to 
establish a program of information regarding the marketing of 
cattle, swine, lambs, and products of such livestock that: 
provides information that can be readily understood by market 
participants; improves the U.S. Department of Agriculture's 
price and supply reporting services; and encourages competition 
in the marketplace for livestock and livestock products.
    Section 212. Definitions. This section defines terms used 
throughout the legislation.
    Section 212(8) defines ``negotiated purchase'' as a cash or 
spot market purchase by the packer from the producer under 
which the base price for livestock is determined by seller-
buyer interaction. To be a ``negotiated purchase,'' the 
livestock must be scheduled for delivery within 14 days after 
the day on which the livestock are committed to the packer.
    Section 212(12) defines ``reporting day'' as a day on which 
a packer conducts business regarding livestock committed to the 
packer, or livestock purchased, sold, or slaughtered by the 
packer, and the Department of Agriculture is open to conduct 
business. Swine and cattle slaughtered by a packer on a weekend 
day or holiday is to be reported by the Secretary on the next 
reporting day.

Chapter 2--Cattle reporting

    Section 221. Definitions. This section defines terms used 
in the cattle portion of the legislation.
    Section 221(3) defines the term ``formula marketing 
arrangement'' as the advance commitment of cattle for slaughter 
by any means other than through negotiated purchase or a 
forward contract, using a method for calculating price in which 
price is determined at a future date.
    Section 221(4) defines the term ``forward contract'' as an 
agreement for the purchase of cattle in advance of slaughter, 
in which the base price is established by reference to prices 
quoted on the Chicago Mercantile Exchange or other comparable 
publicly available prices. It is intended that the term ``other 
forward contracts'' in subparagraph (B) of section 221(4) 
include those cash sales that would otherwise be included in 
the definition of ``negotiated purchase'' except that thecattle 
are scheduled for delivery to the packer later than 14 days after the 
date on which the cattle are committed to the packer. If these 
purchases are not included as forward contract purchases, they might go 
altogether unreported, contrary to the intent of the legislation.
    Section 221(5) defines the term ``packer,'' for the purpose 
of the cattle reporting provisions of the bill, is as any 
person or processing plant that slaughters 125,000 cattle per 
year.
    Section 221(8) defines the term ``type of purchase'' as a 
negotiated purchase, a formula marketing arrangement, or a 
forward contract.
    Section 222. Subsection (a) and (b). Mandatory Reporting 
for Live Cattle. This section requires the Secretary of 
Agriculture to establish a program of live cattle price 
information reporting that will provide timely, accurate, and 
reliable market information about the marketing and slaughter 
of livestock. This section calls for the Secretary to 
categorize the prices or quantities, as applicable, of the 
cattle purchased in the domestic market and imported cattle. 
Information required under this section for packer-owned cattle 
(cattle owned by the packer for 14 or more days before 
slaughter) will include quantity and carcass characteristics, 
but not price.
    Subsection (c). Daily Reporting. The corporate officers or 
officially designated representatives of each packer processing 
plant are required to report to the Secretary at least twice 
daily (once not later than 10:00 a.m. Central Time and once not 
later than 2:00 p.m. Central Time) the following information 
for each cattle type: (1) Prices for cattle (per hundredweight) 
established on that day, categorized by type of purchase, the 
quantity of cattle purchased on a live weight basis, the 
quantity of cattle purchased on a dressed weight basis, a range 
of the estimated live weights of the cattle purchased, an 
estimate of the percentage of the cattle purchased that were of 
a quality grade of choice or better, and any premiums or 
discounts associated with weight, grade, or yield; or any type 
of purchase. (2) The quantity of cattle delivered to the packer 
(quoted in numbers of head) on that day, categorized by type of 
purchase, the quantity of cattle delivered on a live weight 
basis, the quantity of cattle delivered on a dressed weight 
basis; (3) The quantity of cattle committed to the packer 
(quoted in numbers of head) as of that day, categorized by type 
of purchase, the quantity of cattle committed on a live weight 
basis, the quantity of cattle committed on a dressed weight 
basis. The packer must also report the applicable terms of 
trade for the cattle.
    Packers are required to report and, the Secretary is 
required to publish daily, a variety of specific information 
regarding the prices, quantities, and terms of trade with 
respect to cattle priced by, delivered to, or committed to 
packers. The Committee is aware that under the Agricultural 
Marketing Service's current cattle price reporting system, some 
of this same information is reported on a voluntary basis for 
each lot of cattle purchased by packers on a negotiated basis 
(spot sales). The Committee intends that information provided 
under this act also be reported on a lot-by-lot basis.
    If the information were to be aggregated before being 
reported to the Secretary, a reduction in the information 
available to producers would result compared to the current 
reporting system. To avoid this result, any aggregation of the 
lot-by-lot information will be performed by the Secretary, in 
conformance with aggregation guidelines established by the 
Secretary.
    Subsection (d). Weekly Reporting. The corporate officers or 
officially designated representatives of each packer processing 
plant are required to report to the Secretary, on the first 
reporting day of each week not later than 9:00 a.m. Central 
Time, the following information applicable to the prior 
reporting week (the week prior to the reporting day): (1) The 
quantity of cattle purchased through a forward contract that 
were slaughtered; the quantity of cattle delivered under a 
formula marketing arrangement that were slaughtered; the 
quantity and carcass characteristics of packer-owned cattle 
that were slaughtered; the quantity, basis level, and delivery 
month for all cattle purchased through forward contracts that 
were executed, and the range and average of intended premiums 
and discounts that will be in effect for the current reporting 
week (the week in which the reporting day occurs). (2) 
Regarding cattle purchased through a formula marketing 
arrangement: the quantity, weighted average price paid for a 
carcass, range of premiums and discounts paid, weighted average 
of premiums and discounts paid, range of prices paid, aggregate 
weighted average price paid for a carcass, and terms of trade 
regarding the cattle, as applicable. The weekly reports are to 
be made available to the public on the first reporting day of 
each week not later than 10:00 a.m. Central Time.
    The purpose of the weekly reports is to summarize and add 
to the daily data accumulated during the prior reporting week 
on the prices, volumes, types of purchase, types of cattle, 
etc., used in the industry. The Committee intends that prices 
established under a formula marketing arrangement on a daily 
basis and required under Section 222(c) be actual prices 
established for each lot. In the weekly report required under 
Section 222(d), a weighted average is required. The identity of 
the packer purchasing the cattle is intended to be kept 
confidential, and proprietary information of the packer is not 
to be disclosed.
    Information regarding ``terms of trade'' is intended to be 
published daily and weekly by the Secretary only in a 
summarized fashion for each cattle type, price level, region, 
or other category reported to the Secretary. For example, the 
term of trade regarding ``whether a packer provided a financing 
agreement or arrangement with regard to the livestock'' could 
be published by the Secretary as simply the percentage of 
cattle in the applicable transactions for which such financing 
was provided. These publication provisions are not intended to 
require the publication of the specifics of a financing 
agreement or arrangement.
    Information regarding an estimate of the range and average 
of premiums and discounts for the current reporting week is 
intended to codify and make mandatory the reporting by packers 
and the publication by the Secretary of information that is 
currently included in the report entitled the ``National 
Carcass Premiums and Discounts for Slaughter Steers and 
Heifers.''
    The Committee encourages the Secretary to make the 
reporting information available in such a manner that 
comparisons with historical reporting data may be made.
    The Secretary is to determine whether adequate data can be 
obtained on a regional basis for fed dairy steers and heifers, 
cows, and bulls based on the number of packers required to 
report under this section. Not later than 2 years after the 
date of enactment of this subtitle, the Secretary is to submit 
to the Committee on Agriculture of the House of Representatives 
and the Committee on Agriculture, Nutrition, and Forestry of 
the Senate a report on the determination of whether or not this 
data can be obtained on a regional basis.
    Section 223. Mandatory Packer Reporting of Boxed Beef 
Sales. The corporate officers or officially designated 
representatives of each packer processing plant are required to 
report to the Secretary at least twice daily (not less than 
once before, and once after, 12:00 noon Central Time) 
information on total boxed beef sales. This information 
includes: the price for each lot of each negotiated boxed beef 
sale, quoted in dollars per hundredweight; the quantity for 
each lot of each sale, quoted by number of boxes sold; 
information regarding the characteristics of each lot of each 
sale, such as the grade of beef, the cut of beef, and the trim 
specification. The Secretary is required to make this 
information available to the public at least twice daily.
    Packers who fail to accurately report information regarding 
boxed beef sales, will be subject to monetary penalties or 
injunction. The Secretary is provided the authority in section 
251(f) to take such actions necessary to verify the information 
reported under the bill. However, the Committee does not intend 
that the Secretary verify every report regarding a boxed beef 
sale that is made under section 223. Section 251(f) authorizes 
the Secretary to verify reported sales by requiring the packer 
to provide invoices or other information (whether paper or 
electronic). The Committee is hopeful that non-packer 
purchasers will voluntarily provide the information necessary 
to verify the information reported by packers, and specifically 
encourages such purchasers (including retail establishments) to 
provide the requested verifications. Section 251(f) does not 
provide for mandatory verification of boxed beef sales by non-
packer purchasers. The Committee recognizes the importance of 
producers gaining a greater share of the marketing dollar 
through the development of branded products to meet the needs 
and demands of the consuming public. The Secretary currently 
reports generic product where there is significant competition 
and volume of product. The Committee expects this policy to 
continue and does not intend that individual branded products 
will be reported.

Chapter 3--Swine reporting

    Section 231. Definitions. This section defines terms used 
specifically in the swine portion of the legislation.
    Section 231(9) defines ``noncarcass merit premium'' for the 
purposes of the swine reporting provisions of the bill. Such a 
premium includes, but is not limited to, the timing of 
delivery, the number of animals included in a delivery, or the 
particular production method of the swine.
    Section 231(10) defines ``other market formula purchase'' 
as a purchase of swine in which the pricing mechanism is a 
formula price based on a market other than the pork market. The 
term includes a purchase in which the price formula is based on 
a futures or options contract.
    Section 231(11) defines ``other purchase arrangement'' as 
the purchase of swine by a packer that is not a negotiated 
purchase, swine market formula purchase, or other market 
formula purchase.
    Section 231(12) defines ``packer'' for the purposes of the 
swine reporting provisions of the bill as any person or 
processing plant slaughtering 100,000 swine per year.
    Section 231(21) defines ``swine or pork market formula 
purchase'' as a purchase of swine by a packer in which the 
pricing mechanism is a formula price based on a market for pork 
other than a future or option for pork, swine, or pork product.
    Section 231(22) defines ``type of purchase'' as a 
negotiated purchase, other market formula purchase, a swine or 
pork market formula purchase, or other market arrangement.
    Section 232. Mandatory Reporting for Swine. Subsections (a) 
and (b). This section requires the Secretary to establish a 
mandatory program of swine price information reporting that 
will provide timely, accurate, and reliable market information 
about the sales and slaughtering of swine. Information 
regarding packer-owned swine (swine owned by the packer for 14 
or more days prior to slaughter) will include quantity and 
carcass characteristics, but not price. If information 
regarding the type of purchase used to procure packer-sold 
swine is required under this section, the information is to be 
reported according to the numbers and percentages of each type 
of purchase comprising sales of swine by packers and all other 
sales of swine. The Secretary will review the information 
required to be reported by packers under this section at least 
once every 2 years. If the required information no longer 
accurately reflects the methods by which swine are valued and 
priced by packers, or packers that slaughter a significant 
majority of the swine produced in the United States no longer 
use backfat or lean percentage factors as indicators of price, 
the Secretary is authorized, after public notice and an 
opportunity for comment, to promulgate regulations that specify 
additional information that shall be reported. However, the 
Secretary may not require packers to provide any new or 
additional information that is not generally available or 
maintained by packers, or would be burdensome to provide.
    The Secretary is required in subsection (b)(4) to 
periodically review the information required to be reported 
regarding swine marketing and slaughter. If the Secretary 
determines that the required information does not reflect the 
actual methods by which swine are valued by packers, or the 
packers' backfat or lean percentage measurements, the Secretary 
is required, after public notice and an opportunity to comment, 
to promulgate regulations specifying the additional information 
to be required of packers regarding swine pricing methods or 
value indicators. This provision is intended to provide the 
Secretary with the authority necessary to adapt the bill's 
mandatory reporting scheme to reflect the value indicators and 
pricing methods that have evolved and are actually used by 
packers to price swine. The provision is not intended to 
empower the Secretary to prompt the adoption of new value 
indicators and pricing methods by packers. This provision will 
allow the Secretary to collect and publish information 
consistent with practicesactually used by the swine packing 
industry. Finally, the provision prohibits the Secretary from requiring 
the reporting of additional information not otherwise required by the 
bill if that information is not generally available or maintained by 
packers.
    The public comment requirements will serve to ensure that 
the authority of the Secretary to periodically adjust reporting 
requirements is used to require the reporting of additional 
information only when a particular carcass measurement, 
valuation tool, or other industry practice becomes generally 
accepted. Once generally accepted, information regarding the 
measurement, tool, or practice should be readily available from 
packers, and thus the new requirement will not be unduly 
burdensome.
    Subsection (c). Daily Reporting. The corporate officers or 
officially designated representatives of each packer processing 
plant must report to the Secretary 3 times each day the packer 
does business.
    The first packer reporting deadline is to be not later than 
7:00 a.m. Central Time on each reporting day, known as the 
``Prior Day Report''. This report will include information 
regarding all swine purchased, priced, or slaughtered during 
the prior reporting day. The prior reporting day report will 
include all purchase data, such as the total number of swine 
purchased, scheduled for delivery and the base price and 
purchase data for slaughtered swine for which a price has been 
established. This slaughter data information shall be 
categorized according to type of purchase used to procure the 
swine, the hog class, packer-owned swine, and the quantity of 
swine slaughtered. The Secretary is required to publish the 
prior day report not later than 8:00 a.m. Central Time on the 
reporting day on which the information is received from the 
packer.
    The second packer reporting deadline is to be not later 
than 10:00 a.m. Central Time, on each reporting day and is 
known as the ``Morning Report.'' This report will include 
information regarding, for the current reporting day: (1) the 
packer's best estimate of the total number of swine, and 
packer-owned swine, expected to be purchased through all types 
of purchases, (2) the total number of swine, and packer-owned 
swine, purchased before 10:00 a.m. Central Time through all 
types of purchases, (3) the base price paid for hogs purchased 
through negotiated purchases, and (4) the base price paid for 
hogs purchased through types of purchase other than negotiated 
purchases. The Secretary is required to publish the morning 
report not later than 11:00 a.m. Central Time, on each day that 
packers report information to the Secretary.
    The third packer reporting deadline is to be not later than 
2:00 p.m. Central Time, each reporting day, and is known as the 
``Afternoon Report.'' The Afternoon Report is intended to be an 
updated report that includes the same information as the 
Morning Report. The Secretary is required to publish the 
Afternoon Report not later than 3:00 p.m. Central Time, on each 
reporting day.
    This section specifies times for the three specific reports 
of prices and other swine market data. It is important that the 
reports occur at several separate and consistent times so that 
market participants can count on receiving the information 
consistently. The Prior Day Report of actual data from the 
previous day's business must occur early enough to provide 
producers with comprehensive information about marketings and 
slaughter from the prior day, since one day's prices often 
reflect the prior day's transactions. Such knowledge will lead 
to better informed decisions throughout a given reporting day. 
The Morning and Afternoon Reports are spaced out during the day 
in order to reflect any changing market conditions. Finally, 
the times must be consistent in order to facilitate effective 
decision-making and provide a clear base price for contractual 
agreements.
    The intent of this provision is to provide flexibility in 
the timing of price reporting with the understanding that the 
price must be reported as soon as it is known. Some pricing 
systems require longer chill periods or additional carcass 
measurements before the price for the animal is determined. It 
is likely that such systems will increase in number and 
importance in the future as new consumer needs are identified 
and met. This reporting system is intended to provide the 
flexibility for these systems to work as designed, provided 
that the prices are reported in a timely manner once they are 
determined.
    Subsection (d). Weekly Reporting. The corporate officers or 
officially designated representatives of each packer processing 
plant must report to the Secretary a noncarcass merit premium 
report not later than 4:00 p.m. Central Time on the first 
reporting day of each week. This report is to include each 
category of standard noncarcass merit premiums used by the 
packer in the previous business week, and the amount paid to 
producers for each category. A packer is to maintain and make 
available to a producer, on request, a current listing of the 
dollar values of each noncarcass merit premium used by the 
packer during the current or the previous business week. A 
packer will not be required to pay a listed noncarcass merit 
premium to a producer that meets the requirements for the 
premium if the need for swine in a given category is filled at 
a particular point in time. The Secretary is required to 
publish the weekly report not later than 5:00 p.m. Central Time 
on the first reporting day of each week.

Chapter 4--Lamb reporting

    Section 241. Mandatory Reporting for Live Lambs and Lamb 
Carcasses. This section authorizes the Secretary to establish a 
program of mandatory lamb price information reporting that will 
provide timely, accurate, and reliable market information. If 
the Secretary establishes a mandatory price reporting program, 
the Secretary is to provide an opportunity for comment on 
proposed regulations to establish the program during the 30-day 
period beginning on the date of the publication of the proposed 
regulations.

Chapter 5--Administration

    Section 251. General Provisions. This section requires the 
Secretary to make available to the public information, 
statistics, and documents obtained from, or submitted by, 
packers, retail entities, and other persons under this subtitle 
in a manner that ensures that confidentiality is preserved 
regarding the identity of persons, including parties to a 
contract, and ensures that proprietary business information is 
protected. No officer, employee, or agent of the United 
Statesmay, without the consent of the packer or other person concerned, 
divulge or make known in any manner, any facts or information regarding 
the business of the packer or other person that was acquired through 
reporting required under this subtitle. Information obtained by the 
Secretary under this subtitle may be disclosed to agents or employees 
of the Department of Agriculture in the course of their official duties 
under this subtitle, as directed by the Secretary or the Attorney 
General for enforcement purposes, or by a court of competent 
jurisdiction. No facts or information obtained under this subtitle may 
be disclosed through the Freedom of Information Act.
    The packer is to report information to the Secretary on an 
individual lot-by-lot basis. The Secretary is required to 
publish the information obtained under this subtitle on a 
national and on a regional or statewide basis. The Secretary is 
given the discretion to determine whether the aggregation 
guidelines are best satisfied by reporting the information on a 
regional or statewide basis. This discretion is necessary to 
carry out the prohibition against disclosing the identity of 
packers by geographic region.
    The Secretary is authorized to make reasonable adjustments 
in information reported by packers to reflect price aberrations 
or other unusual or unique occurrences that the Secretary 
determines would distort the published information to the 
detriment of producers, packers, or other market participants. 
Regarding the publication of information relative to swine, the 
Committee expects the information to be aggregated into, and 
published in, at least 2 geographic regions. In addition, the 
Committee understands that information will not be published on 
a regional basis if more than 50 percent of the information is 
obtained from a single packer.
    The Secretary is authorized in section 251(e) to adjust 
information collected from packers if the Secretary determines 
that failure to adjust would result in the skewing or 
distorting of the information to the detriment of producers and 
market participants. This provision is intended to empower the 
Secretary to adjust the information made available to the 
public by excluding altogether data that is somehow faulty, or 
that may be accurate but still may result in skewing or 
distorting of the published data due to unusual or unique 
circumstances or occurrences. It is the Committee's 
understanding that this is similar to the practice currently 
followed by the Agricultural Marketing Service in its voluntary 
price reporting program to provide market news information to 
the public in its most useful and reliable form. In adopting 
section 251(e) it is the intent of the Committee to authorize 
the use of a similar practice in the mandatory price reporting 
program for livestock and the products of livestock.
    The form and frequency of verification of packer-reported 
information is left to the Secretary's discretion. The 
Committee notes that the authority of the Secretary provided by 
this subsection for verification of information does not 
require retailers to verify any information.
    Purchases and slaughter of livestock by packers on weekends 
or holidays is to be reported by the Secretary on the next 
reporting day (a day the packer conducts business and the U.S. 
Department of Agriculture is open for business). Information 
accumulated by packers from purchases and slaughter on weekends 
and holidays need only be reported once the next reporting day.
    It is not intended that these mandatory reporting 
provisions will modify or restrict the authority of the 
Secretary with regard to the Packers and Stockyards Act of 
1921, as amended, the current voluntary livestock reporting 
program, and the authorities of the Secretary under the Federal 
Trade Commission Act.
    Section 252. Unlawful Acts. This section states that it is 
a violation of law for any packer or other person subject to 
this subtitle to willfully: (1) fail or refuse to provide or 
delay the timely reporting of accurate information to the 
Secretary (including estimated information or intentions); (2) 
solicit or request that a packer, the buyer or seller of 
livestock or livestock products, or any other person fail to 
provide, as a condition of any transaction, accurate or timely 
information required under this subtitle; (3) fail or refuse to 
comply with this subtitle; or (4) report estimated information 
in a manner that demonstrates a pattern of significant variance 
in accuracy.
    The Committee intends that the Secretary interpret 
``willfully'' as in ``willfully fail * * * to provide * * * 
accurate informa-tion * * *'' to mean that a packer must have 
specific knowledge that the information provided by the packer 
is not accurate information or that a reasonable person in the 
packer's place should have known that the information provided 
by the packer is not accurate information. The existence of one 
of the two elements- specific knowledge or what a reasonable 
person should have known--is sufficient to satisfy the willful 
standard.
    Section 253. Enforcement. This section establishes that any 
packer or other person that violates this subtitle may be 
assessed a civil penalty by the Secretary of not more than 
$10,000 for each violation. Each day that a violation continues 
will be considered to be a separate violation. A cease and 
desist order may be issued in addition to, or in lieu of, a 
civil monetary penalty. In determining the amount of a civil 
penalty to be assessed, the Secretary should consider the 
gravity of the offense, the size of the business involved, and 
the effect of the penalty on the ability of the person that has 
committed the violation to continue in business. The order of 
the Secretary assessing a civil penalty or issuing a cease and 
desist order under this section will be final unless the 
affected person files an appeal of the order in United States 
district court not later than 30 days after the date of the 
issuance of the order.
    Section 254. Fees. This section prohibits the Secretary 
from charging a user fee, transaction fee, or any other type of 
fee for the submission or reporting of information, or for 
providing reports or information to the public.
    It is the intent of this provision to prohibit the 
Secretary from imposing any new fees, charges or assessments to 
cover the activities prescribed by this legislation. It does 
not prohibit the Secretary from charging for printing and 
postage of market news materials in the same manner and under 
the same policy that was applicable at the time of adoption of 
this legislation.
    Section 255. Recordkeeping. This section requires each 
packer to maintain information required under this subtitle for 
2 calendar years all original contracts, agreements, receipts 
andother records associated with any transaction relating to 
the marketing and slaughter of livestock. The Secretary may not require 
a packer to provide new or additional information if the information is 
not generally available or maintained by packers, or if providing the 
information would be burdensome. Each packer is required to record each 
purchase of a lot of cattle or swine to evidence whether the purchase 
occurred before 10:00 a.m., between 10:00 a.m. and 2:00 p.m., or after 
2:00 p.m., on the day of the purchase.
    Section 256. Voluntary Reporting. This section encourages 
voluntary reporting by packers that are not required to comply 
with mandatory reporting under this subtitle.
    Section 257. Publication of Information on Retail Purchase 
Prices for Representative Meat Products. This section requires 
the Secretary to compile and publish at least monthly (weekly, 
if practicable) price and volume information on retail prices 
for representative food products made from beef, pork, chicken, 
turkey, veal, or lamb. To ensure the accuracy of the reports 
required by this section, the Secretary will obtain the 
information for the reports from 1 or more sources including a 
representative set of retail transactions, and both price and 
sale volumes for the transactions. The Secretary may obtain the 
information from retailers or commercial information sources, 
and use valid statistical sampling procedures. Information 
under this section will be collected only on a voluntary basis. 
A penalty will not be imposed on a person for failure to 
provide retail information.
    The retail price report is intended to capture sales prices 
and volumes of meat products including fresh muscle cuts, cured 
products such as ham, turkey ham, and bacon, and processed 
products such as fresh or frozen ground beef patties, sausage, 
chicken breasts, or pork cutlets. It is not intended to report 
data on prepared meal items such as traditional TV dinners or 
prepared entrees such as lasagna or pork tetrazzini. However, 
the Committee encourages the Secretary to work with the entire 
meat industry to develop a system for collecting and reporting 
comparable price and volume information regarding the away-
from-home market for meat products (e.g. quick serve hamburger 
sales).
    Section 258. Suspension Authority Regarding Specific Terms 
of Price Reporting Requirements. Recognizing that meat packing 
is a dynamic and evolving industry, the Committee believes it 
is necessary to provide authority to the Secretary to suspend 
any requirement of this subtitle if the Secretary determines 
that application of one or more statutory requirements has 
become inconsistent with the purposes of this subtitle. The 
suspension period may last for up to 240 days. If new 
legislation has not been enacted by the end of that time, the 
suspended provision will be reinstated.
    Section 259. Federal Preemption. In order to achieve the 
goals, purposes, and objectives of this title on a nationwide 
basis and to avoid potentially conflicting State laws that 
could impede the goals, purposes, or objectives of this title, 
this section provides that no State or political subdivision of 
a State may impose a requirement that is in addition to, or 
inconsistent with, any requirement of this subtitle with 
respect to the submission or reporting of information, or the 
publication of such information, on the prices of livestock or 
livestock products.
    Section 102 Unjust Discrimination. This section amends 
section 202 of the Packers and Stockyards Act of 1921 regarding 
a packer unjustly disqualifying or having undue prejudice 
against a producer. Superfluous language is struck from section 
202 of the Packers and Stockyards Act of 1921. The Committee 
does not intend to affect the current interpretation of the 
section's language. A concern has been expressed by a number of 
pork producers and others that some packers may unjustly 
disqualify some producers from eligibility for certain 
preferential or advantageous contracts for the purchase of 
swine. Packers have argued against the enactment of a separate 
and specific prohibition on the grounds that denying the 
preference or advantage represented by such a contract to a 
given producer is already prohibited under section 202(b).
    The Committee intends that section 202(b) prohibit a packer 
from unjustly disqualifying a producer from being eligible for 
a contract for the sale of swine, if the producer otherwise 
meets the contract's reasonable specifications. Such reasonable 
contract specifications could include, for example, the payment 
of noncarcass merit premiums to qualifying producers who 
deliver swine to a packer that is in need of a limited number 
of slaughter hogs to satisfy its slaughter operations for a 
particular period of operation at a particular plant. Section 
202(b) allows such a packer to limit the payment of this 
noncarcass merit premium only to producers that supply hogs, 
that otherwise meet the packer's specifications, up until the 
time that the packer receives the specific number of hogs 
required.
    Section 103. Conforming Amendment. This section repeals the 
mandatory price reporting pilot program.
    The Agriculture, Rural Development, Food and Drug 
Appropriations Act of 1999 is amended by requiring the 
Secretary to implement a streamlined electronic system for 
collecting export sales and shipment data for fresh and frozen 
meat products. The Secretary is required to develop a data-
reporting program to distribute a summary of this information.

               TITLE II RELATED BEEF REPORTING PROVISIONS

    Section 201. Beef Export Reporting. This section amends 
section 602(a)(1) of the Agricultural Trade Act of 1978 by 
adding beef to the list of agricultural commodities that are 
subject to a weekly commodity export report by the Secretary. 
With regard to these contracts, section 602(a)(1) requires the 
Secretary to report on the type, class, and quantity of the 
commodity sought to be exported, the marketing year of 
shipment, and the destination of the commodity.
    Exporters of beef products and carcasses will be required 
to report to the Secretary all United States origin sales, 
optional origin sales (United States and other countries), and 
exports for the exporter's own account. The Secretary may not 
convert this report from a weekly to monthly basis, 
notwithstanding the discretionary authority provided in section 
602 (a)(4) of the Agricultural Trade Act of 1978 to publish the 
report on a monthly basis. All beef products and unprocessed 
carcasses, including fresh, frozen and cooked beef and beef 
variety meats, are to be reported by exporters and the 
Secretary. Processed products that contain beef as an 
ingredient are notincluded. Exporters are required to report 
beef exports in metric tons, rounded to the nearest half-metric ton. 
The weekly reports are to include all sales and shipments of both beef 
and beef variety meats that occur during the marketing year, which is 
January 1 through December 31.
    Section 202. Export Certificates for Meat and Meat Food 
Products. This section mandates that not later than 1 year 
after the date of enactment of this Act, the Secretary is to 
fully implement a program, through the use of a streamlined 
electronic online system, to issue and report export 
certificates for all meat and meat products.
    Section 203. Imports of Beef, Beef Variety Meats, and 
Cattle. The Secretary is to obtain information regarding the 
import of beef and beef variety meats and cattle using 
available information sources; and publish the information 
weekly and in a form that maximizes the utility of the 
information to beef producers, packers, and other market 
participants. The published information will include 
information reporting the year-to-date cumulative annual 
imports of beef, beef variety meats, and cattle for the current 
and prior marketing years.

             TITLE III--RELATED SWINE REPORTING PROVISIONS

    Section 301. Improvement of Hogs and Pigs Inventory Report. 
The Secretary of Agriculture will publish on a monthly basis 
the Hogs and Pigs Inventory Report. With this report, the 
Secretary will include in a separate category of the Report the 
number of bred female swine that are assumed, or have been 
confirmed, to be pregnant during the reporting period. This 
section requires the Secretary to maintain and publish on a 
quarterly basis the Hogs and Pigs Inventory Report published on 
or before the date of enactment of this Act for 2 years.
    Section 302. Barrow and Gilt Slaughter. This section 
requires the Secretary of Agriculture to obtain and maintain, 
through an appropriate collection system or valid sampling 
system at packing plants, information on the total slaughter of 
swine that reflects differences in numbers between barrows and 
gilts. A weekly report shall be made available to the public. 
Performance of this function cannot be delegated to any packer.
    Section 303. Average Trim Loss Correlation Study and 
Report. This section requires the Secretary of Agriculture to 
contract with a qualified contractor to conduct a correlation 
study and prepare a report that establishes a baseline and 
standards for determining and improving average trim loss 
measurements and processing techniques for pork processors to 
employ in the slaughter of swine. The reports required under 
this section will be made available to the public on the 
Internet and to Congress.
    The Committee expects the Secretary of Agriculture to 
carefully monitor the award of the contract and the performance 
of the contractor in conducting the study. The Committee 
expects the Secretary to ensure that the contractor consults 
periodically and appropriately with the Agricultural Marketing 
Service, the Food Safety and Inspection Service, and the Grain 
Inspection, Packers and Stockyards Administration concerning 
their respective jurisdictions that may be affected by the 
study.
    Section 304. Swine Packer Marketing Contracts. This section 
amends the Packers and Stockyards Act by adding:
    Section 221. Definitions. This section defines terms used 
for the swine contract library.
    Section 222. Swine Packer Marketing Contracts Offered to 
Producers. Subject to the availability of appropriations, this 
section requires the Secretary to establish and maintain a 
library in which each type of contract that is offered by 
packers to swine producers for the purchase and slaughter of 
swine is catalogued. The terms of non-carcass premiums are also 
to be maintained. The Secretary is to make available to swine 
producers and other interested persons information on the types 
of contracts, and to ensure the confidentiality of the swine 
packer and producer. It will be unlawful and a violation of 
this subtitle for any packer to willfully fail or refuse to 
provide to the Secretary accurate information required under 
this section.
    Section 223. Report on the Secretary's Jurisdiction, Power, 
Duties, and Authorities. This section requires the Comptroller 
General to provide to the Committee on Agriculture of the House 
of Representatives and the Committee on Agriculture, Nutrition, 
and Forestry of the Senate a report describing the 
jurisdiction, powers, duties, and authorities of the Secretary 
that relate to packers and other persons involved in procuring, 
slaughtering, or processing swine, pork, or pork products that 
are covered by the Packers and Stockyards Act, the Federal 
Trade Commission Act, and the Agricultural Marketing Act of 
1946. The Comptroller General is to provide an analysis of: (1) 
burdens on, and obstructions to commerce in, swine, pork, and 
pork products created by packers, and other persons that enter 
into arrangements with the packers, that are contrary to the 
public interest; (2) noncompetitive pricing arrangements 
between or among packers; and (3) the adequacy of the authority 
of the Secretary to prevent a packer from unjustly or 
arbitrarily refusing to offer a producer a particular contract 
or type of contract for the purchase of swine.
    Section 305. Authorization of appropriations. Such sums as 
are necessary to carry out this title to the Packers and 
Stockyards Act are authorized to be appropriated.

                        TITLE IV--IMPLEMENTATION

    Section 401. Regulations. The Secretary is to publish final 
regulations to implement this Act and the amendments made by 
this Act within 180 days. Not later than 90 days after the date 
of enactment of this Act, the Secretary is to publish proposed 
regulations. An opportunity for comment on the proposed 
regulations will be provided for 30 days beginning on the date 
of the publication of the proposed regulations. Not later than 
60 days after the conclusion of the comment period, the 
Secretary is to publish the final regulations.
    Section 402. Termination of Authority. The authority 
provided by this Act and the amendments made by this Act 
terminate 5 years after the date of enactment of this Act.

              III. Legislative History and Committee Votes

    The Senate Agriculture, Nutrition, and Forestry Committee 
held a full committee hearing on Wednesday, May 26, 1999. The 
purpose of this hearing was to address issues affecting the 
livestock industry, including country of origin labeling and 
mandatory price reporting of livestock.
    George Swan, president of the National Cattlemen's Beef 
Association testified before the Committee, supporting the need 
for legislation for mandatory price reporting. Mr. Swan gave 
his ideas of items that should be included in the legislation, 
such as complete mandatory reporting of prices and terms of 
trade for all cattle purchased for slaughter. He added that: 
cattle market reports should reflect cattle purchased in the 
domestic and export markets; prices, volumes and terms of trade 
should be reported to USDA twice daily by packers; and import 
reporting should be consistent with export reporting. To 
implement the legislation, he suggested that corporate offices 
of all Federally inspected cattle processing plants report 
weekly to USDA the volume, basis level, and delivery month for 
all cattle purchased on ``basis contracts'' agreed to that 
week.
    John McNutt of the National Pork Producers Council shared 
the ideas that pork producers have concerning mandatory price 
reporting. He stated that, to bring the pork industry back to 
previous levels, an accurate livestock market reporting system 
is needed. Mr. McNutt supported legislation calling for: 
mandatory livestock price reporting; mandatory swine marketing 
contracts reporting; improved monthly retail price reporting; 
monthly hogs and pigs inventory reporting; and a determination 
of Secretary's jurisdiction in the areas of consolidation and 
concentration.
    Frank Moore of the American Sheep Industry Association 
testified that mandatory price reporting in the lamb industry 
will secure the wholesale boxed and carcass lamb prices of 
imported lamb. In regard to formula or contract purchases, he 
stated that reporting should accommodate yield grade and weight 
categories. An average price reported on a live animal basis 
could be utilized for formula or carcass sales by a company.
    Harry Pearson of the American Farm Bureau Federation 
testified before the committee encouraging legislation on price 
reporting. The Farm Bureau policy states that ``packers who 
process more than 5% of national daily slaughter should report 
all cash and contract prices,'' and would like to see expanded 
reporting details on livestock imported, number of animals sold 
under contracts, and reporting of export sales of meat and 
poultry products.
    Philip Klutts testified on behalf of the National Farmers 
Union to support legislation to require meat packers to report 
to USDA prices, volume, and terms of sale for all livestock 
transactions. The Farmers Union also supports the idea of 
requiring packers to submit a copy of their contracts to USDA 
to be made publicly available. Klutts commented that he 
supports the current legislation S. 19 and S. 675 which were 
cosponsored by several members of the Agriculture Committee.
    Bruce Bass of the IBP, Inc. supported legislation for 
mandatory price reporting but believed it isn't a ``cure-all'' 
for the recent low prices in the livestock market. He believed 
that a national system of reporting is better than the 
confusion of state implemented legislation.
    Finally, Rosemary Mucklow of the National Meat Association 
finished the panel to testify before the Senate Agriculture 
Committee. She had many concerns and questions about the effect 
of legislation requiring mandatory price reporting. Some of her 
questions included what transactions need to be reported; how 
would reporting affect premiums and discounts; what burdens 
would it create for a small or medium sized firm; and how would 
mandatory price reporting be enforced? Ms. Mucklow ultimately 
hoped that any legislation would improve the current voluntary 
system and provide sound market information, not simply added 
burden.

                             COMMITTEE VOTE

    In compliance with paragraph 7 of rule XXVI of the Standing 
Rules of the Senate, the following statements are made 
concerning the votes of the Committee in its consideration of 
the Committee bill:
    The Committee met in open session on Thursday, July 29, 
1999, to mark up this bill. The bill was agreed to unanimously 
by voice vote.
    The Committee then ordered that the bill be favorably 
reported by a voice vote.

                    IV. Regulatory Impact Statement

    In compliance with paragraph 11(b) of rule XXVI of the 
Standing Rules of the Senate, the following evaluation is made 
concerning the regulatory impact of enacting this legislation:
    A packer that slaughters cattle or swine is required by 
this legislation to report the number of livestock that the 
packer purchases and slaughters, and the price paid to the 
livestock producer. A processing plant of a packer that 
slaughters 125,000 cattle or 100,000 swine in a year must 
comply with the reporting requirements created by this 
legislation. It is estimated that nation-wide 61 cattle 
packers, and 54 swine packers, will be required to comply with 
this new reporting regime. It is possible that some packers 
have more than one processing plant that will be required to 
comply with this new reporting regime.
    The reporting and records retention requirements imposed by 
this legislation have been crafted to provide useful 
information to livestock producers, yet not impose costly 
burdens on packers. Most of the information required to be 
reported is kept by packers in the normal course of business. 
Packers are required to keep some purchase data for two years 
for compliancepurposes, but the Committee determined that such 
records retention was reasonable in order to enforce the act.
    Several precautions have been taken to avoid disclosure of 
the identity of the packer providing the information, and to 
avoid disclosure of confidential business information of the 
packer. The Secretary of Agriculture has been provided 
considerable authority to ensure that such disclosures do not 
occur. Confidential business information of a packer is to be 
subject to the business secrets exception contained in the 
Freedom of Information Act.

                    V. Budgetary Impact of the Bill

    In accordance with paragraph 11(a) of rule XXVI of the 
Standing Rules of the Senate, the following letter has been 
received from the Congressional Budget Office regarding the 
budgetary impact of the bill:
                                     U.S. Congress,
                               Congressional Budget Office,
                                Washington, DC, September 30, 1999.
Hon. Richard G. Lugar,
Chairman, Committee on Agriculture, Nutrition, and Forestry, U.S. 
        Senate, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for the Livestock Mandatory 
Reporting Act of 1999.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contacts are Jim Langley 
(for federal costs), Marjorie Miller (for state and local 
impact), and Keith Mattrick (for private-sector impact).
            Sincerely,
                                          Barry B. Anderson
                                    (For Dan L. Crippen, Director).
    Enclosure.

               CONGRESSIONAL BUDGET OFFICE COST ESTIMATE

Livestock Mandatory Reporting Act of 1999

    Summary: This bill would amend the Agricultural Marketing 
Act to require certain meat packers to report on their 
activities to the Agriculture Department (USDA). The reports 
would include the prices, quantities, and terms of sale for 
domestic cattle, swine, lambs, and the meat products of such 
livestock. CBO estimates that implementing this bill would cost 
$30 million over the 2000-2004 period, assuming appropriation 
of the necessary amounts. The bill would establish new civil 
penalties, so pay-as-you-go procedures would apply. However, 
CBO estimates that any additional penalties (which are recorded 
in the budget as revenues) would be negligible. The bill's 
provisions would be effective for five years after enactment.
    This bill contains an intergovernmental mandate as defined 
in the Unfunded Mandates Reform Act (UMRA), but CBO estimates 
that this mandate would impose no significant costs on state, 
local, or tribal governments. The legislation also would impose 
private-sector mandates, but CBO estimates that the direct 
costs of those mandates would not exceed the annual threshold 
established in UMRA ($100 million in 1996, adjusted annually 
for inflation).
    Estimated cost to the Federal Government: For the purposes 
of this estimate, CBO assumes that amounts necessary to 
administer this program will be appropriated for each fiscal 
year. The estimated budgetary impact of the bill is shown in 
the following table. The costs of this legislation fall within 
budget function 350 (agriculture).

----------------------------------------------------------------------------------------------------------------
                                                                   By fiscal year in millions of dollars--
                                                           -----------------------------------------------------
                                                              1999     2000     2001     2002     2003     2004
----------------------------------------------------------------------------------------------------------------
                                        SPENDING SUBJECT TO APPROPRIATION

Baseline spending under current law:
    Estimated authorization level \1\.....................        9        9       10       10       10       10
    Estimated outlays.....................................        8        9        9       10       10       10
Proposed changes:
    Estimated authorization level \1\.....................        0        6        6        7        7        7
    Estimated outlays.....................................        0        3        6        7        7        7
Spending under the bill:
    Estimated authorization level \1\.....................        9       15       16       17       17       17
    Estimated outlays.....................................        8       12       15       17       17       17
----------------------------------------------------------------------------------------------------------------
\1\ The 1999 level is the amount appropriated for livestock meat, and gran marketing services of the
  Agricultural Marketing Service. The estimated authorization on levels for 2000 through 2004 reflect CBO
  baseline estimates, assuming adjustments for anticipated inflation.

    Basis of estimate: The bill would significantly expand the 
volume and scope of marketing information about livestock that 
is collected and published by USDA. Based on information from 
USDA, CBO estimates that implementing the bill would require 
additional appropriations of $6 million in both 2000 and 2001, 
and about $7 million annually over the 2002-2004 period.
    The bill would require more standardized collection and 
reporting of information from the meat processing industry 
regarding the marketing of cattle, swine, lambs, and the meat 
products of such livestock than is currently required. 
Livestock processors would have to report detailed information 
regarding prices and quantities of various categories of 
livestock twice a day, which USDA would be required to make 
available to the public three times a day. Certain other 
information would be collected and disseminated weekly. The 
bill also would require USDA to issue export certificates for 
all meat and meat food products, and to compile and report on 
the amounts of beef, variety meats, and cattle that are 
imported.
    The market news service of USDA's Agricultural Marketing 
Service (AMS) employs 70 livestock news reporters stationed 
around the country servicing 670 local livestock markets. The 
bill would require USDA to expand coverage to about 2,000 local 
markets. Based on information from AMS, CBO estimates that the 
expanded duties of USDA would require an additional 82 
livestock news reporters, and associated automated data 
processing equipment. We estimate that the expanded livestock 
reporting required by the bill would increase USDA's costs by 
$30 million over the program's five-year authorization period.
    Pay-as-you-go considerations: The Balanced Budget and 
Emergency Deficit Control Act sets up pay-as-you-go procedures 
for legislation affecting direct spending or receipts. Because 
the bill would establish civil penalties for noncompliance with 
reporting requirements, it could lead to additional revenues. 
However, CBO estimates that any additional collections from 
such penalties would be negligible.
    Estimated impact on State, local, and tribal governments: 
The bill would prohibit state and local governments from 
imposing additional or conflicting requirements regarding 
livestock price reporting. This preemption of state and local 
law would be a mandate as defined in UMRA. CBO estimates, 
however, that this mandate would impose no significant costs on 
state or local governments. The bill would have no other impact 
on the budgets of state, local, or tribal governments.
    Estimated impact on the private sector: The bill would 
impose new private-sector mandates on certain firms that pack 
and process beef and pork, who would be subject to new 
requirements for reporting prices. Based on information 
provided by industry sources, CBO expects that the costs of the 
mandates would fall well below the threshold established in 
UMRA ($100 million in 1996, adjusted annually for inflation). 
Among the burdens that would be imposed is a pricing report 
required twice daily from packing firms that have slaughtered 
an average of 125,000 cattle or 100,000 swine in the past five 
years. The bill also would require those firms to submit weekly 
reports incorporating data on specialized contracts and merit 
premiums. Packing firms would be required to maintain original 
contracts and other records veryifying the accuracy of their 
periodic reports. Many packers currently participate in a 
voluntary reporting system operated by the Department of 
Agriculture. A number of states already require reports, but 
there are significant differences between the programs of 
different states, which has led some packers to push for a 
uniform national standard for reporting. Industry experts 
indicate that the new mandatory program would particularly 
burden small and medium-size firms, who may not have the 
necessary systems in place to fulfill the bill's reporting 
requirements. The costs of the private-sector mandates in this 
bill could exceed $5 million annually for beef and swine 
packers to pay for the increased staffing costs to comply with 
new requirements. The bill would also authorize the Secretary 
of Agriculture to establish a similar reporting program for 
lamb sales, which could impose similar requirements on lamb 
packers if such a program were instituted. The cost of such 
requirements to the industry would fall well below UMRA's 
threshold for private-sector mandates.
    Estimate prepared by: Federal costs: Jim Langley; Impact on 
State, local, and tribal governments: Marjorie Miller; Impact 
on the private sector: Keith Mattrick.
    Estimate approved by: Peter H. Fontaine, Deputy Assistant 
Director for Budget Analysis.

                      VI. Changes in Existing Law

    In compliance with paragraph 12 of rule XXVI of the 
Standing Rules of the Senate, changes in existing law made in 
the bill, as reported are shown as follows (existing law 
proposed to be omitted is enclosed in black brackets, new 
material is printed in italic, existing law in which no change 
is proposed is shown in roman):

                   AGRICULTURAL MARKETING ACT OF 1946

                                TITLE II

    This title may be cited as the ``Agricultural Marketing Act 
of 1946''.

           *       *       *       *       *       *       *


                     Subtitle A--General Provisions

    Sec. 208. The Secretary of Agriculture shall have the power 
to appoint, remove, and fix, in accordance with existing law, 
the compensation of such officers and employees, and to make 
such expenditures as he deems necessary, including expenditures 
for rent outside the District of Columbia, travel, supplies, 
books, equipment, and such other expenditures as may be 
necessary to the administration of this title: Provided, That 
the Secretary of Agriculture may appoint and fix the 
compensation of any technically qualified person, firm, or 
organization by contract or otherwise on a temporary basis and 
for a term not to exceed six months in any fiscal year to 
perform research, inspection, classification, technical, or 
other special services, without regard to the civil-service 
laws or the Classification Act of 1923, as amended.

               Subtitle B--Livestock Mandatory Reporting

                    CHAPTER 1--PURPOSE; DEFINITIONS

SEC. 211. PURPOSE.

    The purpose of this subtitle is to establish a program of 
information regarding the marketing of cattle, swine, lambs, 
and products of such livestock that--
          (1) provides information that can be readily 
        understood by producers, packers, and other market 
        participants, including information with respect to the 
        pricing, contracting for purchase, and supply and 
        demand conditions for livestock, livestock production, 
        and livestock products;
          (2) improves the price and supply reporting services 
        of the Department of Agriculture; and
          (3) encourages competition in the marketplace for 
        livestock and livestock products.

SEC. 212. DEFINITIONS.

    In this subtitle:
          (1) Base price.--The term ``base price'' means the 
        price paid for livestock, delivered at the packing 
        plant, before application of any premiums or discounts, 
        expressed in dollars per hundred pounds of carcass 
        weight.
          (2) Basis level.--The term ``basis level'' means the 
        agreed-on adjustment to a future price to establish the 
        final price paid for livestock.
          (3) Current slaughter week.--The term ``current 
        slaughter week'' means the period beginning Monday, and 
        ending Sunday, of the week in which a reporting day 
        occurs.
          (4) F.O.B.--The term ``F.O.B.'' means free on board, 
        regardless of the mode of transportation, at the point 
        of direct shipment by the seller to the buyer.
          (5) Livestock.--The term ``livestock'' means cattle, 
        swine, and lambs.
          (6) Lot.--The term ``lot'' means a group of 1 or more 
        livestock that is identified for the purpose of a 
        single transaction between a buyer and a seller.
          (7) Marketing.--The term ``marketing'' means the sale 
        or other disposition of livestock, livestock products, 
        or meat or meat food products in commerce.
          (8) Negotiated purchase.--The term ``negotiated 
        purchase'' means a cash or spot market purchase by a 
        packer of livestock from a producer under which--
                  (A) the base price for the livestock is 
                determined by seller-buyer interaction and 
                agreement on a day; and
                  (B) the livestock are scheduled for delivery 
                to the packer not later than 14 days after the 
                date on which the livestock are committed to 
                the packer.
          (9) Negotiated sale.--The term ``negotiated sale'' 
        means a cash or spot market sale by a producer of 
        livestock to a packer under which--
                  (A) the base price for the livestock is 
                determined by seller-buyer interaction and 
                agreement on a day; and
                  (B) the livestock are scheduled for delivery 
                to the packer not later than 14 days after the 
                date on which the livestock are committed to 
                the packer.
          (10) Prior slaughter week.--The term ``prior 
        slaughter week'' means the Monday through Sunday prior 
        to a reporting day.
          (11) Producer.--The term ``producer'' means any 
        person engaged in the business of selling livestock to 
        a packer for slaughter (including the sale of livestock 
        from a packer to another packer).
          (12) Reporting day.--The term ``reporting day'' means 
        a day on which--
                  (A) a packer conducts business regarding 
                livestock committed to the packer, or livestock 
                purchased, sold, or slaughtered by the packer;
                  (B) the Secretary is required to make 
                information concerning the business described 
                in subparagraph (A) available to the public; 
                and
                  (C) the Department of Agriculture is open to 
                conduct business.
          (13) Secretary.--The term ``Secretary'' means the 
        Secretary of Agriculture.
          (14) State.--The term ``State'' means each of the 50 
        States.

                      CHAPTER 2--CATTLE REPORTING

SEC. 221. DEFINITIONS.

    In this chapter:
          (1) Cattle committed.--The term ``cattle committed'' 
        means cattle that are scheduled to be delivered to a 
        packer within the 7-day period beginning on the date of 
        an agreement to sell the cattle.
          (2) Cattle type.--The term ``cattle type'' means the 
        following types of cattle purchased for slaughter:
                  (A) Fed steers.
                  (B) Fed heifers.
                  (C) Fed Holsteins and other fed dairy steers 
                and heifers.
                  (D) Cows.
                  (E) Bulls.
          (3) Formula marketing arrangement.--The term 
        ``formula marketing arrangement'' means the advance 
        commitment of cattle for slaughter by any means other 
        than through a negotiated purchase or a forward 
        contract, using a method for calculating price in which 
        the price is determined at a future date.
          (4) Forward contract.--The term ``forward contract'' 
        means--
                  (A) an agreement for the purchase of cattle, 
                executed in advance of slaughter, under which 
                the base price is established by reference to--
                          (i) prices quoted on the Chicago 
                        Mercantile Exchange; or
                          (ii) other comparable publicly 
                        available prices; or
                  (B) such other forward contract as the 
                Secretary determines to be applicable.
          (5) Packer.--The term ``packer'' means any person 
        engaged in the business of buying cattle in commerce 
        for purposes of slaughter, of manufacturing or 
        preparing meats or meat food products from cattle for 
        sale or shipment in commerce, or of marketing meats or 
        meat food products from cattle in an unmanufactured 
        form acting as a wholesale broker, dealer, or 
        distributor in commerce, except that--
                  (A) the term includes only a cattle 
                processing plant that is federally inspected;
                  (B) for any calendar year, the term includes 
                only a cattle processing plant that slaughtered 
                an average of at least 125,000 head of cattle 
                per year during the immediately preceding 5 
                calendar years; and
                  (C) in the case of a cattle processing plant 
                that did not slaughter cattle during the 
                immediately preceding 5 calendar years, the 
                Secretary shall consider the plant capacity of 
                the processing plant in determining whether the 
                processing plant should be considered a packer 
                under this chapter.
          (6) Packer-owned cattle.--The term ``packer-owned 
        cattle'' means cattle that a packer owns for at least 
        14 days immediately before slaughter.
          (7) Terms of trade.--The term ``terms of trade'' 
        includes, with respect to the purchase of cattle for 
        slaughter--
                  (A) whether a packer provided any financing 
                agreement or arrangement with regard to the 
                cattle;
                  (B) whether the delivery terms specified the 
                location of the producer or the location of the 
                packer's plant;
                  (C) whether the producer is able to 
                unilaterally specify the date and time during 
                the business day of the packer that the cattle 
                are to be delivered for slaughter; and
                  (D) the percentage of cattle purchased by a 
                packer as a negotiated purchase that are 
                delivered to the plant for slaughter more than 
                7 days, but fewer than 14 days, after the 
                earlier of--
                          (i) the date on which the cattle were 
                        committed to the packer; or
                          (ii) the date on which the cattle 
                        were purchased by the packer.
          (8) Type of purchase.--The term ``type of purchase', 
        with respect to cattle, means--
                  (A) a negotiated purchase;
                  (B) a formula market arrangement; and
                  (C) a forward contract.

SEC. 222. MANDATORY REPORTING FOR LIVE CATTLE.

    (a) Establishment.--The Secretary shall establish a program 
of live cattle price information reporting that will--
          (1) provide timely, accurate, and reliable market 
        information;
          (2) facilitate more informed marketing decisions; and
          (3) promote competition in the cattle slaughtering 
        industry.
    (b) General Reporting Provisions Applicable to Packers and 
the Secretary.--
          (1) In general.--Whenever the prices or quantities of 
        cattle are required to be reported or published under 
        this section, the prices or quantities shall be 
        categorized so as to clearly delineate--
                  (A) the prices or quantities, as applicable, 
                of the cattle purchased in the domestic market; 
                and
                  (B) the prices or quantities, as applicable, 
                of imported cattle.
          (2) Packer-owned cattle.--Information required under 
        this section for packer-owned cattle shall include 
        quantity and carcass characteristics, but not price.
    (c) Daily Reporting.--
          (1) In general.--The corporate officers or officially 
        designated representatives of each packer processing 
        plant shall report to the Secretary at least twice each 
        reporting day (including once not later than 10:00 a.m. 
        Central Time and once not later than 2:00 p.m. Central 
        Time) the following information for each cattle type:
                  (A) The prices for cattle (per hundredweight) 
                established on that day, categorized by--
                          (i) type of purchase;
                          (ii) the quantity of cattle purchased 
                        on a live weight basis;
                          (iii) the quantity of cattle 
                        purchased on a dressed weight basis;
                          (iv) a range of the estimated live 
                        weights of the cattle purchased;
                          (v) an estimate of the percentage of 
                        the cattle purchased that were of a 
                        quality grade of choice or better; and
                          (vi) any premiums or discounts 
                        associated with--
                                  (I) weight, grade, or yield; 
                                or
                                  (II) any type of purchase.
                  (B) The quantity of cattle delivered to the 
                packer (quoted in numbers of head) on that day, 
                categorized by--
                          (i) type of purchase;
                          (ii) the quantity of cattle delivered 
                        on a live weight basis; and
                          (iii) the quantity of cattle 
                        delivered on a dressed weight basis.
                  (C) The quantity of cattle committed to the 
                packer (quoted in numbers of head) as of that 
                day, categorized by--
                          (i) type of purchase;
                          (ii) the quantity of cattle committed 
                        on a live weight basis; and
                          (iii) the quantity of cattle 
                        committed on a dressed weight basis.
                  (D) The terms of trade regarding the cattle, 
                as applicable.
          (2) Publication.--The Secretary shall make the 
        information available to the public not less frequently 
        than 3 times each reporting day.
    (d) Weekly Reporting.--
          (1) In general.--The corporate officers or officially 
        designated representatives of each packer processing 
        plant shall report to the Secretary, on the first 
        reporting day of each week, not later than 9:00 a.m. 
        Central Time, the following information applicable to 
        the prior slaughter week:
                  (A) The quantity of cattle purchased through 
                a forward contract that were slaughtered.
                  (B) The quantity of cattle delivered under a 
                formula marketing arrangement that were 
                slaughtered.
                  (C) The quantity and carcass characteristics 
                of packer-owned cattle that were slaughtered.
                  (D) The quantity, basis level, and delivery 
                month for all cattle purchased through forward 
                contracts that were agreed to by the parties.
                  (E) The range and average of intended 
                premiums and discounts that are expected to be 
                in effect for the current slaughter week.
          (2) Formula purchases.--The corporate officers or 
        officially designated representatives of each packer 
        processing plant shall report to the Secretary, on the 
        first reporting day of each week, not later than 9:00 
        a.m. Central Time, the following information for cattle 
        purchased through a formula marketing arrangement and 
        slaughtered during the prior slaughter week:
                  (A) The quantity (quoted in both numbers of 
                head and hundredweights) of cattle.
                  (B) The weighted average price paid for a 
                carcass, including applicable premiums and 
                discounts.
                  (C) The range of premiums and discounts paid.
                  (D) The weighted average of premiums and 
                discounts paid.
                  (E) The range of prices paid.
                  (F) The aggregate weighted average price paid 
                for a carcass.
                  (G) The terms of trade regarding the cattle, 
                as applicable.
          (3) Publication.--The Secretary shall make available 
        to the public the information obtained under paragraphs 
        (1) and (2) on the first reporting day of the current 
        slaughter week, not later than 10:00 a.m. Central Time.
    (e) Regional Reporting of Cattle Types.--
          (1) In general.--The Secretary shall determine 
        whether adequate data can be obtained on a regional 
        basis for fed Holsteins and other fed dairy steers and 
        heifers, cows, and bulls based on the number of packers 
        required to report under this section.
          (2) Report.--Not later than 2 years after the date of 
        enactment of this subtitle, the Secretary shall submit 
        to the Committee on Agriculture of the House of 
        Representatives and the Committee on Agriculture, 
        Nutrition, and Forestry of the Senate a report on the 
        determination of the Secretary under paragraph (1).

SEC. 223. MANDATORY PACKER REPORTING OF BOXED BEEF SALES. 6

    (a) Daily Reporting.--The corporate officers or officially 
designated representatives of each packer processing plant 
shall report to the Secretary at least twice each reporting day 
(not less than once before, and once after, 12:00 noon Central 
Time) information on total boxed beef sales, including--
          (1) the price for each lot of each negotiated boxed 
        beef sale (determined by seller-buyer interaction and 
        agreement), quoted in dollars per hundredweight (on a 
        F.O.B. plant basis);
          (2) the quantity for each lot of each sale, quoted by 
        number of boxes sold; and
          (3) information regarding the characteristics of each 
        lot of each sale, including--
                  (A) the grade of beef (USDA Choice or better, 
                USDA Select, or ungraded no-roll product);
                  (B) the cut of beef; and
                  (C) the trim specification.
    (b) Publication.--The Secretary shall make available to the 
public the information required to be reported under subsection 
(a) not less frequently than twice each reporting day.

                       CHAPTER 3--SWINE REPORTING

SEC. 231. DEFINITIONS.

    In this chapter:
          (1) Affiliate.--The term ``affiliate'', with respect 
        to a packer, means--
                  (A) a person that directly or indirectly 
                owns, controls, or holds with power to vote, 5 
                percent or more of the outstanding voting 
                securities of the packer;
                  (B) a person 5 percent or more of whose 
                outstanding voting securities are directly or 
                indirectly owned, controlled, or held with 
                power to vote, by the packer; and
                  (C) a person that directly or indirectly 
                controls, or is controlled by or under common 
                control with, the packer.
          (2) Applicable reporting period.--The term 
        ``applicable reporting period'' means the period of 
        time prescribed by the prior day report, the morning 
        report, and the afternoon report, as required under 
        section 232(c).
          (3) Barrow.--The term ``barrow'' means a neutered 
        male swine.
          (4) Base market hog.--The term ``base market hog'' 
        means a hog for which no discounts are subtracted from 
        and no premiums are added to the base price.
          (5) Bred female swine.--The term ``bred female swine' 
        means any female swine, whether a sow or gilt, that has 
        been mated or inseminated and is assumed, or has been 
        confirmed, to be pregnant.
          (6) Formula price.--The term ``formula price'' means 
        a price determined by a mathematical formula under 
        which the price established for a specified market 
        serves as the basis for the formula.
          (7) Gilt.--The term ``gilt'' means a young female 
        swine that has not produced a litter.
          (8) Hog class.--The term ``hog class'' means, as 
        applicable--
                  (A) barrows or gilts;
                  (B) sows; or
                  (C) boars or stags.
          (9) Noncarcass merit premium.--The term ``noncarcass 
        merit premium'' means an increase in the base price of 
        the swine offered by an individual packer or packing 
        plant, based on any factor other than the 
        characteristics of the carcass, if the actual amount of 
        the premium is known before the sale and delivery of 
        the swine.
          (10) Other market formula purchase.--
                  (A) In general.--The term ``other market 
                formula purchase'' means a purchase of swine by 
                a packer in which the pricing mechanism is a 
                formula price based on any market other than 
                the market for swine, pork, or a pork product.
                  (B) Inclusion.--The term ``other market 
                formula purchase'' includes a formula purchase 
                in a case in which the price formula is based 
                on 1 or more futures or options contracts.
          (11) Other purchase arrangement.--The term ``other 
        purchase arrangement'' means a purchase of swine by a 
        packer that--
                  (A) is not a negotiated purchase, swine or 
                pork market formula purchase, or other market 
                formula purchase; and
                  (B) does not involve packer-owned swine.
          (12) Packer.--The term ``packer'' means any person 
        engaged in the business of buying swine in commerce for 
        purposes of slaughter, of manufacturing or preparing 
        meats or meat food products from swine for sale or 
        shipment in commerce, or of marketing meats or meat 
        food products from swine in an unmanufactured form 
        acting as a wholesale broker, dealer, or distributor in 
        commerce, except that--
                  (A) the term includes only a swine processing 
                plant that is federally inspected;
                  (B) for any calendar year, the term includes 
                only a swine processing plant that slaughtered 
                an average of at least 100,000 swine per year 
                during the immediately preceding 5 calendar 
                years; and
                  (C) in the case of a swine processing plant 
                that did not slaughter swine during the 
                immediately preceding 5 calendar years, the 
                Secretary shall consider the plant capacity of 
                the processing plant in determining whether the 
                processing plant should be considered a packer 
                under this chapter.
          (13) Packer-owned swine.--The term ``packer-owned 
        swine'' means swine that a packer (including a 
        subsidiary or affiliate of the packer) owns for at 
        least 14 days immediately before slaughter.
          (14) Packer-sold swine.--The term ``packer-sold 
        swine'' means the swine that are--
                  (A) owned by a packer (including a subsidiary 
                or affiliate of the packer) for more than 14 
                days immediately before sale for slaughter; and
                  (B) sold for slaughter to another packer.
          (15) Pork.--The term ``pork'' means the meat of a 
        porcine animal.
          (16) Pork product.--The term ``pork product'' means a 
        product or byproduct produced or processed in whole or 
        in part from pork.
          (17) Purchase data.--The term ``purchase data'' means 
        all of the applicable data, including weight (if 
        purchased live), for all swine purchased during the 
        applicable reporting period, regardless of the expected 
        delivery date of the swine, reported by--
                  (A) hog class;
                  (B) type of purchase; and
                  (C) packer-owned swine.
          (18) Slaughter data.--The term ``slaughter data'' 
        means all of the applicable data for all swine 
        slaughtered by a packer during the applicable reporting 
        period, regardless of when the price of the swine was 
        negotiated or otherwise determined, reported by--
                  (A) hog class;
                  (B) type of purchase; and
                  (C) packer-owned swine.
          (19) Sow.--The term ``sow'' means an adult female 
        swine that has produced 1 or more litters.
          (20) Swine.--The term ``swine'' means a porcine 
        animal raised to be a feeder pig, raised for seedstock, 
        or raised for slaughter.
          (21) Swine or pork market formula purchase.--The term 
        ``swine or pork market formula purchase'' means a 
        purchase of swine by a packer in which the pricing 
        mechanism is a formula price based on a market for 
        swine, pork, or a pork product, other than a future or 
        option for swine, pork, or a pork product.
          (22) Type of purchase.--The term ``type of 
        purchase'', with respect to swine, means--
                  (A) a negotiated purchase;
                  (B) other market formula purchase;
                  (C) a swine or pork market formula purchase; 
                and
                  (D) other purchase arrangement.

SEC. 232. MANDATORY REPORTING FOR SWINE.

    (a) Establishment.--The Secretary shall establish a program 
of swine price information reporting that will--
          (1) provide timely, accurate, and reliable market 
        information;
          (2) facilitate more informed marketing decisions; and
          (3) promote competition in the swine slaughtering 
        industry.
    (b) General Reporting Provisions Applicable to Packers and 
the Secretary.--
          (1) In general.--The Secretary shall establish and 
        implement a price reporting program in accordance with 
        this section that includes the reporting and 
        publication of information required under this section.
          (2) Packer-owned swine.--Information required under 
        this section for packer-owned swine shall include 
        quantity and carcass characteristics, but not price.
          (3) Packer-sold swine.--If information regarding the 
        type of purchase is required under this section, the 
        information shall be reported according to the numbers 
        and percentages of each type of purchase comprising--
                  (A) packer-sold swine; and
                  (B) all other swine.
          (4) Additional information.--
                  (A) Review.--The Secretary shall review the 
                information required to be reported by packers 
                under this section at least once every 2 years.
                  (B) Outdated information.--After public 
                notice and an opportunity for comment, subject 
                to subparagraph (C), the Secretary shall 
                promulgate regulations that specify additional 
                information that shall be reported under this 
                section if the Secretary determines under the 
                review under subparagraph (A) that--
                          (i) information that is currently 
                        required no longer accurately reflects 
                        the methods by which swine are valued 
                        and priced by packers; or
                          (ii) packers that slaughter a 
                        significant majority of the swine 
                        produced in the United States no longer 
                        use backfat or lean percentage factors 
                        as indicators of price.
                  (C) Limitation.--Under subparagraph (B), the 
                Secretary may not require packers to provide 
                any new or additional information that--
                          (i) is not generally available or 
                        maintained by packers; or
                          (ii) would be otherwise unduly 
                        burdensome to provide.
    (c) Daily Reporting.--
          (1) Prior day report.--
                  (A) In general.--The corporate officers or 
                officially designated representatives of each 
                packer processing plant shall report to the 
                Secretary, for each business day of the packer, 
                such information as the Secretary determines 
                necessary and appropriate to--
                          (i) comply with the publication 
                        requirements of this section; and
                          (ii) provide for the timely access to 
                        the information by producers, packers, 
                        and other market participants.
                  (B) Reporting deadline and plants required to 
                report.--Not later than 7:00 a.m. Central Time 
                on each reporting day, a packer required to 
                report under subparagraph (A) shall report 
                information regarding all swine purchased, 
                priced, or slaughtered during the prior 
                business day of the packer.
                  (C) Information required.--The information 
                from the prior business day of a packer 
                required under this paragraph shall include--
                          (i) all purchase data, including--
                                  (I) the total number of--
                                          (aa) swine purchased; 
                                        and
                                          (bb) swine scheduled 
                                        for delivery; and
                                  (II) the base price and 
                                purchase data for slaughtered 
                                swine for which a price has 
                                been established;
                          (ii) all slaughter data for the total 
                        number of swine slaughtered, 
                        including--
                                  (I) information concerning 
                                the net price, which shall be 
                                equal to the total amount paid 
                                by a packer to a producer 
                                (including all premiums, less 
                                all discounts) per hundred 
                                pounds of carcass weight of 
                                swine delivered at the plant--
                                          (aa) including any 
                                        sum deducted from the 
                                        price per hundredweight 
                                        paid to a producer that 
                                        reflects the repayment 
                                        of a balance owed by 
                                        the producer to the 
                                        packer or the 
                                        accumulation of a 
                                        balance to later be 
                                        repaid by the packer to 
                                        the producer; and
                                          (bb) excluding any 
                                        sum earlier paid to a 
                                        producer that must 
                                        later be repaid to the 
                                        packer;
                                  (II) information concerning 
                                the average net price, which 
                                shall be equal to the quotient 
                                (stated per hundred pounds of 
                                carcass weight of swine) 
                                obtained by dividing--
                                          (aa) the total amount 
                                        paid for the swine 
                                        slaughtered at a 
                                        packing plant during 
                                        the applicable 
                                        reporting period, 
                                        including all premiums 
                                        and discounts, and 
                                        including any sum 
                                        deducted from the price 
                                        per hundredweight paid 
                                        to a producer that 
                                        reflects the repayment 
                                        of a balance owed by 
                                        the producer to the 
                                        packer, or the 
                                        accumulation of a 
                                        balance to later be 
                                        repaid by the packer to 
                                        the producer, less all 
                                        discounts; by
                                          (bb) the total 
                                        carcass weight (in 
                                        hundred pound 
                                        increments) of the 
                                        swine;
                                  (III) information concerning 
                                the lowest net price, which 
                                shall be equal to the lowest 
                                net price paid for a single lot 
                                or a group of swine slaughtered 
                                at a packing plant during the 
                                applicable reporting period per 
                                hundred pounds of carcass 
                                weight of swine;
                                  (IV) information concerning 
                                the highest net price, which 
                                shall be equal to the highest 
                                net price paid for a single lot 
                                or group of swine slaughtered 
                                at a packing plant during the 
                                applicable reporting period per 
                                hundred pounds of carcass 
                                weight of swine;
                                  (V) the average carcass 
                                weight, which shall be equal to 
                                the quotient obtained by 
                                dividing--
                                          (aa) the total 
                                        carcass weight of the 
                                        swine slaughtered at 
                                        the packing plant 
                                        during the applicable 
                                        reporting period; by
                                          (bb) the number of 
                                        the swine described in 
                                        item (aa);
                                          adjusted for special 
                                        slaughter situations 
                                        (such as skinning or 
                                        foot removal), as the 
                                        Secretary determines 
                                        necessary to render 
                                        comparable carcass 
                                        weights;
                                  (VI) the average sort loss, 
                                which shall be equal to the 
                                average discount (in dollars per 
                                hundred pounds carcass weight) for 
                                swine slaughtered during the 
                                applicable reporting period, resulting 
                                from the fact that the swine did 
                                not fall within the individual 
                                packer's established carcass weight 
                                or lot variation range;
                                  (VII) the average backfat, 
                                which shall be equal to the 
                                average of the backfat 
                                thickness (in inches) measured 
                                between the third and fourth 
                                from the last ribs, 7 
                                centimeters from the carcass 
                                split (or adjusted from the 
                                individual packer's measurement 
                                to that reference point using 
                                an adjustment made by the 
                                Secretary) of the swine 
                                slaughtered during the 
                                applicable reporting period;
                                  (VIII) the average lean 
                                percentage, which shall be 
                                equal to the average percentage 
                                of the carcass weight comprised 
                                of lean meat for the swine 
                                slaughtered during the 
                                applicable reporting period, 
                                except that when a packer is 
                                required to report the average 
                                lean percentage under this 
                                subclause, the packer shall 
                                make available to the Secretary 
                                the underlying data, applicable 
                                methodology and formulae, and 
                                supporting materials used to 
                                determine the average lean 
                                percentage, which the Secretary 
                                may convert to the carcass 
                                measurements or lean percentage 
                                of the swine of the individual 
                                packer to correlate to a common 
                                percent lean measurement; and
                                  (IX) the total slaughter 
                                quantity, which shall be equal 
                                to the total number of swine 
                                slaughtered during the 
                                applicable reporting period, 
                                including all types of 
                                purchases and packer-owned 
                                swine; and
                          (iii) packer purchase commitments, 
                        which shall be equal to the number of 
                        swine scheduled for delivery to a 
                        packer for slaughter for each of the 
                        next 14 calendar days.
                  (D) Publication.--The Secretary shall publish 
                the information obtained under this paragraph 
                in a prior day report not later than 8:00 a.m. 
                Central Time on the reporting day on which the 
                information is received from the packer.
          (2) Morning report.--
                  (A) In general.--The corporate officers or 
                officially designated representatives of each 
                packer processing plant shall report to the 
                Secretary not later than 10:00 a.m. Central 
                Time each reporting day--
                          (i) the packer's best estimate of the 
                        total number of swine, and packer-owned 
                        swine, expected to be purchased 
                        throughout the reporting day through 
                        each type of purchase;
                          (ii) the total number of swine, and 
                        packer-owned swine, purchased up to 
                        that time of the reporting day through 
                        each type of purchase;
                          (iii) the base price paid for all 
                        base market hogs purchased up to that 
                        time of the reporting day through 
                        negotiated purchases; and
                          (iv) the base price paid for all base 
                        market hogs purchased through each type 
                        of purchase other than negotiated 
                        purchase up to that time of the 
                        reporting day, unless such information 
                        is unavailable due to pricing that is 
                        determined on a delayed basis.
                  (B) Publication.--The Secretary shall publish 
                the information obtained under this paragraph 
                in the morning report as soon as practicable, 
                but not later than 11:00 a.m. Central Time, on 
                each reporting day.
          (3) Afternoon report.--
                  (A) In general.--The corporate officers or 
                officially designated representatives of each 
                packer processing plant shall report to the 
                Secretary not later than 2:00 p.m. Central Time 
                each reporting day--
                          (i) the packer's best estimate of the 
                        total number of swine, and packer-owned 
                        swine, expected to be purchased 
                        throughout the reporting day through 
                        each type of purchase;
                          (ii) the total number of swine, and 
                        packer-owned swine, purchased up to 
                        that time of the reporting day through 
                        each type of purchase;
                          (iii) the base price paid for all 
                        base market hogs purchased up to that 
                        time of the reporting day, through 
                        negotiated purchases; and
                          (iv) the base price paid for all base 
                        market hogs purchased up to that time 
                        of the reporting day through each type 
                        of purchase other than negotiated 
                        purchase, unless such information is 
                        unavailable due to pricing that is 
                        determined on a delayed basis.
                  (B) Publication.--The Secretary shall publish 
                the information obtained under this paragraph 
                in the afternoon report as soon as practicable, 
                but not later than 3:00 p.m. Central Time, on 
                each reporting day.
    (d) Weekly Noncarcass Merit Premium Report.--
          (1) In general.--Not later than 4:00 p.m. Central 
        Time on the first reporting day of each week, the 
        corporate officers or officially designated 
        representatives of each packer processing plant shall 
        report to the Secretary a noncarcass merit premium 
        report that lists--
                  (A) each category of standard noncarcass 
                merit premiums used by the packer in the prior 
                slaughter week; and
                  (B) the amount (in dollars per hundred pounds 
                of carcass weight) paid to producers by the 
                packer, by category.
          (2) Premium list.--A packer shall maintain and make 
        available to a producer, on request, a current listing 
        of the dollar values (per hundred pounds of carcass 
        weight) of each noncarcass merit premium used by the 
        packer during the current or the prior slaughter week.
          (3) Availability.--A packer shall not be required to 
        pay a listed noncarcass merit premium to a producer 
        that meets the requirements for the premium if the need 
        for swine in a given category is filled at a particular 
        point in time.
          (4) Publication.--The Secretary shall publish the 
        information obtained under this subsection as soon as 
        practicable, but not later than 5:00 p.m. Central Time, 
        on the first reporting day of each week.

                       CHAPTER 4--LAMB REPORTING

SEC. 241. MANDATORY REPORTING FOR LAMBS.

    (a) Establishment.--The Secretary may establish a program 
of mandatory lamb price information reporting that will--
          (1) provide timely, accurate, and reliable market 
        information;
          (2) facilitate more informed marketing decisions; and
          (3) promote competition in the lamb slaughtering 
        industry.
    (b) Notice and Comment.--If the Secretary establishes a 
mandatory price reporting program under subsection (a), the 
Secretary shall provide an opportunity for comment on proposed 
regulations to establish the program during the 30-day period 
beginning on the date of the publication of the proposed 
regulations.

                       CHAPTER 5--ADMINISTRATION

SEC. 251. GENERAL PROVISIONS.

    (a) Confidentiality.--The Secretary shall make available to 
the public information, statistics, and documents obtained 
from, or submitted by, packers, retail entities, and other 
persons under this subtitle in a manner that ensures that 
confidentiality is preserved regarding--
          (1) the identity of persons, including parties to a 
        contract; and
          (2) proprietary business information.
    (b) Disclosure by Federal Government Employees.--
          (1) In general.--Subject to paragraph (2), no 
        officer, employee, or agent of the United States shall, 
        without the consent of the packer or other person 
        concerned, divulge or make known in any manner, any 
        facts or information regarding the business of the 
        packer or other person that was acquired through 
        reporting required under this subtitle.
          (2) Exceptions.--Information obtained by the 
        Secretary under this subtitle may be disclosed--
                  (A) to agents or employees of the Department 
                of Agriculture in the course of their official 
                duties under this subtitle;
                  (B) as directed by the Secretary or the 
                Attorney General, for enforcement purposes; or
                  (C) by a court of competent jurisdiction.
          (3) Disclosure under freedom of information act.--
        Notwithstanding any other provision of law, no facts or 
        information obtained under this subtitle shall be 
        disclosed in accordance with section 552 of title 5, 
        United States Code.
    (c) Reporting by Packers.--A packer shall report all 
information required under this subtitle on an individual lot 
basis.
    (d) Regional Reporting and Aggregation.--The Secretary 
shall make information obtained under this subtitle available 
to the public only in a manner that--
          (1) ensures that the information is published on a 
        national and a regional or statewide basis as the 
        Secretary determines to be appropriate;
          (2) ensures that the identity of a reporting person 
        is not disclosed; and
          (3) conforms to aggregation guidelines established by 
        the Secretary.
    (e) Adjustments.--Prior to the publication of any 
information required under this subtitle, the Secretary may 
make reasonable adjustments in information reported by packers 
to reflect price aberrations or other unusual or unique 
occurrences that the Secretary determines would distort the 
published information to the detriment of producers, packers, 
or other market participants.
    (f) Verification.--The Secretary shall take such actions as 
the Secretary considers necessary to verify the accuracy of the 
information submitted or reported under chapter 2, 3, or 4.
    (g) Electronic Reporting and Publishing.--The Secretary 
shall, to the maximum extent practicable, provide for the 
reporting and publishing of the information required under this 
subtitle by electronic means.
    (h) Reporting of Activities on Weekends and Holidays.--
          (1) In general.--Livestock committed to a packer, or 
        purchased, sold, or slaughtered by a packer, on a 
        weekend day or holiday shall be reported by the packer 
        to the Secretary (to the extent required under this 
        subtitle), and reported by the Secretary, on the 
        immediately following reporting day.
          (2) Limitation on reporting by packers.--A packer 
        shall not be required to report actions under paragraph 
        (1) more than once on the immediately following 
        reporting day.
    (i) Effect on Other Laws.--Nothing in this subtitle, the 
Livestock Mandatory Reporting Act of 1999, or amendments made 
by that Act restricts or modifies the authority of the 
Secretary to--
          (1) administer or enforce the Packers and Stockyards 
        Act, 1921 (7 U.S.C. 181 et seq.);
          (2) administer, enforce, or collect voluntary reports 
        under this title or any other law; or
          (3) access documentary evidence as provided under 
        sections 9 and 10 of the Federal Trade Commission Act 
        (15 U.S.C. 49, 50).

SEC. 252. UNLAWFUL ACTS.

    It shall be unlawful and a violation of this subtitle for 
any packer or other person subject to this subtitle (in the 
submission of information required under chapter 2, 3, or 4, as 
determined by the Secretary) to willfully--
          (1) fail or refuse to provide, or delay the timely 
        reporting of, accurate information to the Secretary 
        (including estimated information);
          (2) solicit or request that a packer, the buyer or 
        seller of livestock or livestock products, or any other 
        person fail to provide, as a condition of any 
        transaction, accurate or timely information required 
        under this subtitle;
          (3) fail or refuse to comply with this subtitle; or
          (4) report estimated information in any report 
        required under this subtitle in a manner that 
        demonstrates a pattern of significant variance in 
        accuracy when compared to the actual information that 
        is reported for the same reporting period, or as 
        determined by any audit, oversight, or other 
        verification procedures of the Secretary.

SEC. 253. ENFORCEMENT.

    (a) Civil Penalty.--
          (1) In general.--Any packer or other person that 
        violates this subtitle may be assessed a civil penalty 
        by the Secretary of not more than $10,000 for each 
        violation.
          (2) Continuing violation.--Each day during which a 
        violation continues shall be considered to be a 
        separate violation.
          (3) Factors.--In determining the amount of a civil 
        penalty to be assessed under paragraph (1), the 
        Secretary shall consider the gravity of the offense, 
        the size of the business involved, and the effect of 
        the penalty on the ability of the person that has 
        committed the violation to continue in business.
          (4) Multiple violations.--In determining whether to 
        assess a civil penalty under paragraph (1), the 
        Secretary shall consider whether a packer or other 
        person subject to this subtitle has engaged in a 
        pattern of errors, delays, or omissions in violation of 
        this subtitle.
    (b) Cease and Desist.--In addition to, or in lieu of, a 
civil penalty under subsection (a), the Secretary may issue an 
order to cease and desist from continuing any violation.
    (c) Notice and Hearing.--No penalty shall be assessed, or 
cease and desist order issued, by the Secretary under this 
section unless the person against which the penalty is assessed 
or to which the order is issued is given notice and opportunity 
for a hearing before the Secretary with respect to the 
violation.
    (d) Finality and Judicial Review.--
          (1) In general.--The order of the Secretary assessing 
        a civil penalty or issuing a cease and desist order 
        under this section shall be final and conclusive unless 
        the affected person files an appeal of the order of the 
        Secretary in United States district court not later 
        than 30 days after the date of the issuance of the 
        order.
          (2) Standard of review.--A finding of the Secretary 
        under this section shall be set aside only if the 
        finding is found to be unsupported by substantial 
        evidence.
    (e) Enforcement.--
          (1) In general.--If, after the lapse of the period 
        allowed for appeal or after the affirmance of a penalty 
        assessed under this section, the person against which 
        the civil penalty is assessed fails to pay the penalty, 
        the Secretary may refer the matter to the Attorney 
        General who may recover the penalty by an action in 
        United States district court.
          (2) Finality.--In the action, the final order of the 
        Secretary shall not be subject to review.
    (f) Injunction or Restraining Order.--
          (1) In general.--If the Secretary has reason to 
        believe that any person subject to this subtitle has 
        failed or refused to provide the Secretary information 
        required to be reported pursuant to this subtitle, and 
        that it would be in the public interest to enjoin the 
        person from further failure to comply with the 
        reporting requirements, the Secretary may notify the 
        Attorney General of the failure.
          (2) Attorney general.--The Attorney General may apply 
        to the appropriate district court of the United States 
        for a temporary or permanent injunction or restraining 
        order.
          (3) Court.--When needed to carry out this subtitle, 
        the court shall, on a proper showing, issue a temporary 
        injunction or restraining order without bond.
    (g) Failure To Obey Orders.--
          (1) In general.--If a person subject to this subtitle 
        fails to obey a cease and desist or civil penalty order 
        issued under this subsection after the order has become 
        final and unappealable, or after the appropriate United 
        States district court has entered a final judgment in 
        favor of the Secretary, the United States may apply to 
        the appropriate district court for enforcement of the 
        order.
          (2) Enforcement.--If the court determines that the 
        order was lawfully made and duly served and that the 
        person violated the order, the court shall enforce the 
        order.
          (3) Civil penalty.--If the court finds that the 
        person violated the cease and desist provisions of the 
        order, the person shall be subject to a civil penalty 
        of not more than $10,000 for each offense.

SEC. 254. FEES.

    The Secretary shall not charge or assess a user fee, 
transaction fee, service charge, assessment, reimbursement, or 
any other fee for the submission or reporting of information, 
for the receipt or availability of, or access to, published 
reports or information, or for any other activity required 
under this subtitle.

SEC. 255. RECORDKEEPING.

    (a) In General.--Subject to subsection (b), each packer 
required to report information to the Secretary under this 
subtitle shall maintain, and make available to the Secretary on 
request, for 2 years--
          (1) the original contracts, agreements, receipts and 
        other records associated with any transaction relating 
        to the purchase, sale, pricing, transportation, 
        delivery, weighing, slaughter, or carcass 
        characteristics of all livestock; and
          (2) such records or other information as is necessary 
        or appropriate to verify the accuracy of the 
        information required to be reported under this 
        subtitle.
    (b) Limitations.--Under subsection (a)(2), the Secretary 
may not require a packer to provide new or additional 
information if--
          (1) the information is not generally available or 
        maintained by packers; or
          (2) the provision of the information would be unduly 
        burdensome.
    (c) Purchases of Cattle or Swine.--A record of a purchase 
of a lot of cattle or a lot of swine by a packer shall evidence 
whether the purchase occurred--
          (1) before 10:00 a.m. Central Time;
          (2) between 10:00 a.m. and 2:00 p.m. Central Time; or
          (3) after 2:00 p.m. Central Time.

SEC. 256. VOLUNTARY REPORTING.

    The Secretary shall encourage voluntary reporting by 
packers (as defined in section 201 of the Packers and 
Stockyards Act, 1921 (7 U.S.C. 191)) to which the mandatory 
reporting requirements of this subtitle do not apply.

SEC. 257. PUBLICATION OF INFORMATION ON RETAIL PURCHASE PRICES FOR 
                    REPRESENTATIVE MEAT PRODUCTS.

    (a) In General.--Beginning not later than 90 days after the 
date of enactment of this subtitle, the Secretary shall compile 
and publish at least monthly (weekly, if practicable) 
information on retail prices for representative food products 
made from beef, pork, chicken, turkey, veal, or lamb.
    (b) Information.--The report published by the Secretary 
under subsection (a) shall include--
          (1) information on retail prices for each 
        representative food product described in subsection 
        (a); and
          (2) information on total sales quantity (in pounds 
        and dollars) for each representative food product.
    (c) Meat Price Spreads Report.--During the period ending 2 
years after the initial publication of the report required 
under subsection (a), the Secretary shall continue to publish 
the Meat Price Spreads Report in the same manner as the Report 
was published before the date of enactment of this subtitle.
    (d) Information Collection.--
          (1) In general.--To ensure the accuracy of the 
        reports required under subsection (a), the Secretary 
        shall obtain the information for the reports from 1 or 
        more sources including--
                  (A) a consistently representative set of 
                retail transactions; and
                  (B) both prices and sales quantities for the 
                transactions.
          (2) Source of information.--The Secretary may--
                  (A) obtain the information from retailers or 
                commercial information sources; and
                  (B) use valid statistical sampling 
                procedures, if necessary.
          (3) Adjustments.--In providing information on retail 
        prices under this section, the Secretary may make 
        adjustments to take into account differences in--
                  (A) the geographic location of consumption;
                  (B) the location of the principal source of 
                supply;
                  (C) distribution costs; and
                  (D) such other factors as the Secretary 
                determines reflect a verifiable comparative 
                retail price for a representative food product.
    (e) Administration.--The Secretary--
          (1) shall collect information under this section only 
        on a voluntary basis; and
          (2) shall not impose a penalty on a person for 
        failure to provide the information or otherwise compel 
        a person to provide the information.

SEC. 258. SUSPENSION AUTHORITY REGARDING SPECIFIC TERMS OF PRICE 
                    REPORTING REQUIREMENTS.

    (a) In General.--The Secretary may suspend any requirement 
of this subtitle if the Secretary determines that application 
of the requirement is inconsistent with the purposes of this 
subtitle.
    (b) Suspension Procedure.--
          (1) Period.--A suspension under subsection (a) shall 
        be for a period of not more than 240 days.
          (2) Action by congress.--If an Act of Congress 
        concerning the requirement that is the subject of the 
        suspension under subsection (a) is not enacted by the 
        end of the period of the suspension established under 
        paragraph (1), the Secretary shall implement the 
        requirement.

SEC. 259. FEDERAL PREEMPTION.

    In order to achieve the goals, purposes, and objectives of 
this title on a nationwide basis and to avoid potentially 
conflicting State laws that could impede the goals, purposes, 
or objectives of this title, no State or political subdivision 
of a State may impose a requirement that is in addition to, or 
inconsistent with, any requirement of this subtitle with 
respect to the submission or reporting of information, or the 
publication of such information, on the prices and quantities 
of livestock or livestock products.

           *       *       *       *       *       *       *

                              ----------                              


                    PACKERS AND STOCKYARDS ACT, 1921

                           TITLE II--PACKERS

                     Subtitle A--General Provisions

    Sec. 201. When used in this Act the term ``packer'' means 
any person engaged in the business (a) of buying livestock in 
commerce for purposes of slaughter, or (b) of manufacturing or 
preparing meats or meat food products for sale or shipment in 
commerce, or (c) of marketing meats, meat food products, or 
livestock products in an unmanufactured form acting as a 
wholesale broker, dealer, or distributor in commerce. . . .
    Sec. 202. It shall be unlawful for any packer with respect 
to livestock, meats, meat food products, or livestock products 
in unmanufactured form, or for any live poultry dealer with 
respect to live poultry, to:
          (a) Engage in or use any unfair, unjustly 
        discriminatory, or deceptive practice or device; or
          (b) Make or give any undue or unreasonable preference 
        or advantage to any particular person or locality in 
        any respect [whatsoever], or subject any particular 
        person or locality to any undue or unreasonable 
        prejudice or disadvantage in any respect [whatsoever]; 
        or
    Sec. 207. (a) It is hereby found that a burden on and 
obstruction to commerce in poultry is caused by financing 
arrangements under which live poultry dealers encumber, give 
lenders security interest in, or place liens on, poultry 
obtained by such persons by purchase in cash sales or by 
poultry growing arrangements, or on inventories of or 
receivables or proceeds from such poultry or poultry products 
therefrom, when payment is not made for the poultry and that 
such financing arrangements are contrary to the public 
interest. This section is intended to remedy such burden on and 
obstruction to commerce in poultry and protect the public 
interest.

           *       *       *       *       *       *       *

    (e) For the purpose of this section, a cash sale means a 
sale in which the seller does not expressly extend credit to 
the buyer.

              Subtitle B--Swine Packer Marketing Contracts

SEC. 221. DEFINITIONS.

    Except as provided in section 223(a), in this subtitle:
          (1) Market.--The term `market' means the sale or 
        disposition of swine, pork, or pork products in 
        commerce.
          (2) Packer.--The term `packer' has the meaning given 
        the term in section 231 of the Agricultural Marketing 
        Act of 1946.
          (3) Pork.--The term `pork' means the meat of a 
        porcine animal.
          (4) Pork product.--The term `pork product' means a 
        product or byproduct produced or processed in whole or 
        in part from pork.
          (5) State.--The term `State' means each of the 50 
        States.
          (6) Swine.--The term `swine' means a porcine animal 
        raised to be a feeder pig, raised for seedstock, or 
        raised for slaughter.
          (7) Type of contract.--The term `type of contract' 
        means the classification of contracts or risk 
        management agreements for the purchase of swine by--
                  (A) the mechanism used to determine the base 
                price for swine committed to a packer, grouped 
                into practicable classifications by the 
                Secretary (including swine or pork market 
                formula purchases, other market formula 
                purchases, and other purchase arrangements); 
                and
                  (B) the presence or absence of an accrual 
                account or ledger that must be repaid by the 
                producer or packer that receives the benefit of 
                the contract pricing mechanism in relation to 
                negotiated prices.
          (8) Other terms.--Except as provided in this 
        subtitle, a term has the meaning given the term in 
        section 212 or 231 of the Agricultural Marketing Act of 
        1946.

SEC. 222. SWINE PACKER MARKETING CONTRACTS OFFERED TO PRODUCERS.

    (a) In General.--Subject to the availability of 
appropriations to carry out this section, the Secretary shall 
establish and maintain a library or catalog of each type of 
contract offered by packers to swine producers for the purchase 
of all or part of the producers' production of swine (including 
swine that are purchased or committed for delivery), including 
all available noncarcass merit premiums.
    (b) Availability.--The Secretary shall make available to 
swine producers and other interested persons information on the 
types of contracts described in subsection (a), including 
notice (on a real-time basis if practicable) of the types of 
contracts that are being offered by each individual packer to, 
and are open to acceptance by, producers for the purchase of 
swine.
    (c) Confidentiality.--The reporting requirements under 
subsections (a) and (b) shall be subject to the confidentiality 
protections provided under section 251 of the Agricultural 
Marketing Act of 1946.
    (d) Information Collection.--
          (1) In general.--The Secretary shall--
                  (A) obtain (by a filing or other procedure 
                required of each individual packer) information 
                indicating what types of contracts for the 
                purchase of swine are available from each 
                packer; and
                  (B) make the information available in a 
                monthly report to swine producers and other 
                interested persons.
          (2) Contracted swine numbers.--Each packer shall 
        provide, and the Secretary shall collect and publish in 
        the monthly report required under paragraph (1)(B), 
        information specifying--
                  (A) the types of existing contracts for each 
                packer;
                  (B) the provisions contained in each contract 
                that provide for expansion in the numbers of 
                swine to be delivered under the contract for 
                the following 6-month and 12-month periods;
                  (C) an estimate of the total number of swine 
                committed by contract for delivery to all 
                packers within the 6-month and 12-month periods 
                following the date of the report, reported by 
                reporting region and by type of contract; and
                  (D) an estimate of the maximum total number 
                of swine that potentially could be delivered 
                within the 6-month and 12-month periods 
                following the date of the report under the 
                provisions described in subparagraph (B) that 
                are included in existing contracts, reported by 
                reporting region and by type of contract.
    (e) Violations.--It shall be unlawful and a violation of 
this title for any packer to willfully fail or refuse to 
provide to the Secretary accurate information required under, 
or to willfully fail or refuse to comply with any requirement 
of, this section.
    (f) Authorization of Appropriations.--There are authorized 
to be appropriated such sums as necessary to carry out this 
section.

SEC. 223. REPORT ON THE SECRETARY'S JURISDICTION, POWER, DUTIES, AND 
                    AUTHORITIES.

    (a) Definition of Packer.--In this section, the term 
`packer' has the meaning given the term in section 201 of the 
Packers and Stockyards Act, 1921 (7 U.S.C. 191).
    (b) Report.--Not later than 90 days after the date of 
enactment of this subtitle, the Comptroller General of the 
United States shall provide to the Committee on Agriculture of 
the House of Representatives and the Committee onAgriculture, 
Nutrition, and Forestry of the Senate a report describing the 
jurisdiction, powers, duties, and authorities of the Secretary that 
relate to packers and other persons involved in procuring, 
slaughtering, or processing swine, pork, or pork products that are 
covered by this Act and other laws, including--
          (1) the Federal Trade Commission Act (15 U.S.C. 41 et 
        seq.), especially sections 6, 8, 9, and 10 of that Act 
        (15 U.S.C. 46, 48, 49, 50); and
          (2) the Agricultural Marketing Act of 1946 (7 U.S.C. 
        1621 et seq.).
    (c) Contents.--The Comptroller General shall include in the 
report an analysis of--
          (1) burdens on and obstructions to commerce in swine, 
        pork, and pork products by packers, and other persons 
        that enter into arrangements with the packers, that are 
        contrary to, or do not protect, the public interest;
          (2) noncompetitive pricing arrangements between or 
        among packers, or other persons involved in the 
        processing, distribution, or sale of pork and pork 
        products, including arrangements provided for in 
        contracts for the purchase of swine;
          (3) the effective monitoring of contracts entered 
        into between packers and swine producers;
          (4) investigations that relate to, and affect, the 
        disclosure of--
                  (A) transactions involved in the business 
                conduct and practices of packers; and
                  (B) the pricing of swine paid to producers by 
                packers and the pricing of products in the pork 
                and pork product merchandising chain;
          (5) the adequacy of the authority of the Secretary to 
        prevent a packer from unjustly or arbitrarily refusing 
        to offer a producer, or disqualifying a producer from 
        eligibility for, a particular contract or type of 
        contract for the purchase of swine; and
          (6) the ability of the Secretary to cooperate with 
        and enhance the enforcement of actions initiated by 
        other Federal departments and agencies, or Federal 
        independent agencies, to protect trade and commerce in 
        the pork and pork product industries against unlawful 
        restraints and monopolies.
    [Sec. 416. Mandatory domestic reporting pilot 
investigation.--

           *       *       *       *       *       *       *

          [(1) In general.--The Secretary of Agriculture shall 
        conduct a twelve month pilot investigation, beginning 
        upon the date of implementation of such pilot, under 
        which the Secretary shall require any person or class 
        of persons engaged in the business of buying, selling, 
        or marketing domestic or imported cattle for immediate 
        slaughter and fresh muscle cuts of beef, or domestic or 
        imported sheep and fresh or frozen muscle cuts of lamb, 
        to report to the Secretary, in the least intrusive 
        manner possible, information relating to prices for the 
        procurement of these items.
          [(2) Application.--This section shall only apply to a 
        person that is engaged in the business of buying, 
        selling, or marketing a significant share of the 
        national market, as determined by the Secretary, of the 
        total volume of domestic or imported cattle for 
        immediate slaughter and fresh muscle cuts of beef, or 
        domestic or imported sheep and fresh or frozen muscle 
        cuts of lamb, bought, sold, or marketed in the United 
        States.
          [(3) Report.--Not later than six months after the 
        conclusion of the mandatory domestic reporting pilot 
        investigation, the Secretary of Agriculture shall 
        submit a report to the Committee on Agriculture of the 
        House of Representatives and the Committee on 
        Agriculture, Nutrition, and Forestry of the Senate on 
        the effectiveness of the pilot investigation. No 
        information collected under the pilot investigation may 
        be disclosed until the report is submitted.]

   AGRICULTURE, RURAL DEVELOPMENT, FOOD AND DRUG ADMINISTRATION, AND 
               RELATED AGENCIES APPROPRIATIONS ACT, 1999

           *       *       *       *       *       *       *


SEC. 1127. PILOT PROGRAMS.

    (a) Domestic Market Reporting Pilot Program.--(Enacted 
section 229a of this title.)
    [(b) Export Market Reporting Pilot Investigation.--
          [(1) In general.--The Secretary shall implement a 
        twelve month pilot investigation, beginning on the date 
        of implementation, of a streamlined electronic system 
        for collecting export data, in the least intrusive 
        manner possible, for fresh or frozen muscle cuts of 
        meat food products, and develop a data-reporting 
        program to disseminate summary information in a timely 
        manner, not to exceed two weeks after issuance.
          [(2) Report.--Not later than six months after the 
        conclusion of the mandatory export reporting pilot 
        investigation, the Secretary of Agriculture shall 
        submit a report to the Committee on Agriculture of the 
        House of Representatives and the Committee on 
        Agriculture, Nutrition, and Forestry of the Senate on 
        the effectiveness of the pilot investigation.
    (b) Export Market Reporting.--The Secretary shall--
          (1) implement a streamlined electronic system for 
        collecting export sales and shipments data, in the 
        least intrusive manner possible, for fresh or frozen 
        muscle cuts of meat food products; and
          (2) develop a data-reporting program to disseminate 
        summary information in a timely manner (in the case of 
        beef, consistent with the reporting under section 
        602(a) of the Agricultural Trade Act of 1978 (7 U.S.C. 
        5712(a))).
    (c) Funding.--An amount of $250,000 is hereby appropriated 
to carry out [this section of the Act] subsection (b).

                  THE AGRICULTURAL TRADE ACT OF 1978

           *       *       *       *       *       *       *


    Sec. 602(a) Export Reporting and Contract Sanctity.--
Section 327 of P.L. 102-237 made technical corrections to this 
subsection.--
          (1) In general.--All exporters of wheat and wheat 
        flour, feed grains, oil seeds, cotton, beef, and 
        products thereof, and other commodities that the 
        Secretary may designate produced in the United States 
        shall report to the Secretary of Agriculture, on a 
        weekly basis, the following information regarding any 
        contract for export sales entered into or subsequently 
        modified in any manner during the reporting period:

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