110th CONGRESS
1st Session
S. 622
To enhance fair and open competition in the production and sale
of agricultural commodities.
IN THE SENATE OF THE UNITED STATES
February 15, 2007
Mr. HARKIN (for himself, Mr. ENZI, Mr. FEINGOLD, Mr. THOMAS, Mr. DORGAN,
Mr. BAUCUS, and Mrs. MCCASKILL) introduced the following bill; which was
read twice and referred to the Committee on Agriculture, Nutrition, and
Forestry
A BILL
To enhance fair and open competition in the production and sale
of agricultural commodities.
Be it enacted by the Senate and House of Representatives of the United
States of America in Congress assembled,
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) Short Title- This Act may be cited as the `Competitive and Fair Agricultural
Markets Act of 2007'.
(b) Table of Contents- The table of contents for this Act is as follows:
Sec. 1. Short title; table of contents.
TITLE I--AGRICULTURAL FAIR PRACTICES
Sec. 101. Agricultural fair practices.
TITLE II--PACKERS AND STOCKYARDS
Sec. 201. Investigation of live poultry dealers.
Sec. 202. No competitive injury requirement.
Sec. 203. Attorneys' fees.
Sec. 204. Appointment of outside counsel.
TITLE I--AGRICULTURAL FAIR PRACTICES
SEC. 101. AGRICULTURAL FAIR PRACTICES.
The Agricultural Fair Practices Act of 1967 (7 U.S.C. 2301 et seq.) is amended
to read as follows:
`SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
`(a) In General- This Act may be cited as the `Agricultural Fair Practices
Act of 1967'.
`(b) Table of Contents- The table of contents of this Act is as follows:
`Sec. 1. Short title; table of contents.
`TITLE I--AGRICULTURAL TRADE PRACTICES
`Sec. 101. Office of Special Counsel for Competition Matters.
`TITLE II--PROHIBITIONS ON ANY UNFAIR, UNJUSTLY DISCRIMINATORY, OR DECEPTIVE
ACT, DEVICE, OR ANTI-COMPETITIVE PRACTICE IN AGRICULTURAL COMMERCE
`Sec. 201. Prohibitions involving crops.
`Sec. 202. Prohibitions involving producer associations and production
contracts.
`Sec. 203. Production contracts and marketing contracts.
`Sec. 204. Production contracts.
`Sec. 205. Authority of Secretary to promulgate rules and regulations.
`Sec. 207. Effect on other laws.
`Sec. 208. Assignment of association dues and fees.
`SEC. 2. DEFINITIONS.
`(1) AGRICULTURAL COMMODITY-
`(A) IN GENERAL- Except as provided in subparagraph (B), the term `agricultural
commodity' has the meaning given the term in section 102 of the Agricultural
Trade Act of 1978 (7 U.S.C. 5602).
`(B) EXCEPTION- In section 201, the term `agricultural commodity'--
`(ii) does not include a perishable agricultural commodity, as that
term is defined in section 1(b) of the Perishable Agricultural Commodities
Act, 1930 (7 U.S.C. 499a(b)).
`(2) AGRICULTURAL COOPERATIVE- The term `agricultural cooperative' means
an association of persons engaged in the production, marketing, or processing
of an agricultural commodity that meets the requirements of the Act entitled
`An Act to authorize association of producers of agricultural products'
(commonly known as the `Capper-Volstead Act') (7 U.S.C. 291 et seq.).
`(3) ASSOCIATION OF PRODUCERS-
`(A) IN GENERAL- The term `association of producers' means an association
of producers of agricultural commodities that engages in the marketing,
bargaining, shipping, or processing of agricultural commodities or of
agricultural services.
`(B) INCLUSIONS- The term `association of producers' includes--
`(i) an organization dedicated to promoting the common interest and
general welfare of producers of agricultural commodities;
`(ii) a cooperative association (as defined in section 15(a) of the
Agricultural Marketing Act (12 U.S.C. 1141j(a))); and
`(iii) an association described in the first section of the Act entitled
`An Act to authorize association of producers of agricultural products'
(commonly known as the `Capper-Volstead Act') (7 U.S.C. 291).
`(4) CAPITAL INVESTMENT- The term `capital investment' means an investment
in--
`(A) a structure, such as a building or manure storage structure; or
`(B) machinery or equipment associated with producing an agricultural
commodity that has a useful life of more than 1 year.
`(5) COMMISSION MERCHANT- The term `commission merchant' means any person
engaged in the business of receiving in interstate or foreign commerce
any agricultural commodity for sale on commission.
`(6) CONTRACT LIVESTOCK FACILITY- The term `contract livestock facility'
means a facility in which livestock or a product of live livestock is
produced under a production contract by a contract producer.
`(7) CONTRACTOR- The term `contractor' means a person that, in accordance
with a production contract, owns, or will own, an agricultural commodity
that is produced by a contract producer.
`(8) CONTRACT PRODUCER- The term `contract producer' means a producer
that produces an agricultural commodity under a production contract.
`(9) COVERED PERSON- The term `covered person' means a dealer, handler,
contractor, processor, or commission merchant.
`(10) CROP- The term `crop' means an agricultural commodity produced from
a plant.
`(11) DEALER- The term `dealer' means any person engaged in the business
of buying, selling, or marketing agricultural commodities in interstate
or foreign commerce.
`(12) DEPARTMENT- The term `Department' means the Department of Agriculture.
`(13) HANDLER- The term `handler' means any person engaged in the business
or practice of--
`(A) acquiring agricultural commodities from producers or associations
of producers for processing or sale;
`(B) grading, packaging, handling, storing, or processing agricultural
commodities received from producers or associations of producers;
`(C) contracting or negotiating contracts or other arrangements, written
or oral, with or on behalf of producers or associations of producers
with respect to the production or marketing of any agricultural commodity;
or
`(D) acting as an agent or broker for a handler in the performance of
any function or act described in subparagraph (A), (B), or (C).
`(14) INVESTMENT REQUIREMENT- The term `investment requirement' means
a provision in a production contract that requires a contract producer
to make a capital investment associated with producing an agricultural
commodity that, but for the production contract, the contract producer
would not have made.
`(15) LIVESTOCK- The term `livestock' has the meaning given the term in
section 602 of the Agricultural Act of 1949 (7 U.S.C. 1471).
`(16) MARKETING CONTRACT- The term `marketing contract' means a written
agreement between a covered person and a producer for the purchase of
an agricultural commodity produced or raised by the producer.
`(17) PERSON- The term `person' includes an individual, partnership, corporation,
limited liability company, limited partnership, or association.
`(18) PROCESSOR- The term `processor' means--
`(A) any person (other than an agricultural cooperative) engaged in
the business of handling, preparing, or manufacturing (including slaughtering)
an agricultural commodity or the products of an agricultural commodity
for sale or marketing in interstate or foreign commerce; and
`(B) an agricultural cooperative that handles, prepares, or manufactures
(including slaughtering) agricultural commodities of its members' own
production.
`(19) PRODUCE- The term `produce' means--
`(A) to provide feed or services relating to the care and feeding of
livestock, including milking dairy cattle and storing raw milk; or
`(B) to plant, raise, harvest, and store a crop, including preparing
soil for planting and applying a fertilizer, soil conditioner, or pesticide
to a crop.
`(20) PRODUCER- The term `producer' means a person engaged in the production
of an agricultural commodity as a farmer, planter, rancher, dairyman,
poultryman, or fruit, vegetable, or nut grower.
`(21) PRODUCTION CONTRACT-
`(A) IN GENERAL- The term `production contract' means a written agreement
that provides for--
`(i) the production of an agricultural commodity by a contract producer;
or
`(ii) the provision of a management service relating to the production
of an agricultural commodity by a contract producer.
`(B) INCLUSIONS- The term `production contract' includes--
`(i) a contract between a contractor and a contract producer for the
production of an agricultural commodity; or
`(ii) a contract between a contractor and a contract producer for
the provision of a management service in the production of an agricultural
commodity.
`(22) SECRETARY- The term `Secretary' means the Secretary of Agriculture.
`TITLE I--AGRICULTURAL TRADE PRACTICES
`SEC. 101. OFFICE OF SPECIAL COUNSEL FOR COMPETITION MATTERS.
`(1) IN GENERAL- There is established within the Department an office
to be known as the `Office of Special Counsel for Competition Matters'.
`(2) DUTIES- The Office shall--
`(A) investigate and prosecute violations of this Act and the Packers
and Stockyards Act, 1921 (7 U.S.C. 181 et seq.);
`(B) serve as a liaison between, and act in consultation with, the Department
and the Department of Justice and the Federal Trade Commission with
respect to competition and trade practices in the food and agricultural
sector; and
`(C) maintain a staff of attorneys and other professionals with the
appropriate expertise.
`(b) Special Counsel for Competition Matters-
`(1) IN GENERAL- The Office shall be headed by the Special Counsel for
Competition Matters, who shall be appointed by the President, by and with
the advice and consent of the Senate.
`(2) PROSECUTORIAL AUTHORITY- Notwithstanding title 28, United States
Code, the Special Counsel for Competition Matters shall have the authority
to bring any civil or administrative action authorized under this Act
or the Packers and Stockyards Act, 1921 (7 U.S.C. 181 et seq.).
`TITLE II--PROHIBITIONS ON ANY UNFAIR, UNJUSTLY DISCRIMINATORY, OR DECEPTIVE
ACT, DEVICE, OR ANTI-COMPETITIVE PRACTICE IN AGRICULTURAL COMMERCE
`SEC. 201. PROHIBITIONS INVOLVING CROPS.
`(a) Prohibition on Any Unfair, Unjustly Discriminatory, or Deceptive Act,
Device, or Anti-Competitive Practice- Any unfair, unjustly discriminatory,
or deceptive act, device, or anti-competitive practice in or affecting the
marketing, receiving, purchasing, sale, or contracting for the production
of any agricultural commodity by any covered person shall be unlawful.
`(b) Other Unlawful Acts- It shall be unlawful for any covered person--
`(1) to make or give any undue or unreasonable preference or advantage
to any particular person or locality in any respect, or subject any particular
person or locality to any undue or unreasonable prejudice or disadvantage
in any respect;
`(2) to sell or otherwise transfer to or for any other person, or buy
or otherwise receive from or for any other person, any article for the
purpose or with the effect of manipulating or controlling prices, or of
creating a monopoly in the acquisition of, buying, selling, or dealing
in, any article, or of restraining commerce;
`(3) to engage in any course of business or do any act for the purpose
or with the effect or manipulating or controlling prices, or of creating
a monopoly in the acquisition of, buying, selling, or dealing in, any
article, or of restraining commerce;
`(4) to conspire, combine, agree, or arrange with any other person--
`(A) to apportion territory for carrying on business;
`(B) to apportion purchases or sales of any article; or
`(C) to manipulate or control prices; or
`(5) to conspire, combine, agree, or arrange with any other person to
do, or aid or abet the doing of, any act made unlawful by paragraph (1),
(2), (3), or (4).
`(c) Public Policy Considerations- In determining whether an act, device,
or anti-competitive practice described in subsection (a) is unfair, a court
may consider whether--
`(1) a reasonable person would consider the act, device, or practice unfair
under the circumstances, whether or not the act, device, or practice has
previously been found unlawful; or
`(2) the act, device, or practice may violate standards established by
Federal or State law (including common law and regulations).
`SEC. 202. PROHIBITIONS INVOLVING PRODUCER ASSOCIATIONS AND PRODUCTION
CONTRACTS.
`(a) Any Unlawful Act Involving Producer Associations and Production Contracts-
It shall be unlawful for any covered person--
`(1)(A) to interfere with, restrain, or coerce any producer in the exercise
of the right of the producer to join and belong to, or to refrain from
joining or belonging to, an association of producers; or
`(B) to refuse to deal with any producer because of the exercise of the
right of the producer to join and belong to the association;
`(2) to discriminate against any producer with respect to price, quantity,
quality, or other terms of purchase, acquisition, or other handling of
an agricultural commodity because of the membership of the producer in,
or the contract of the producer with, an association of producers;
`(3) to coerce or intimidate any producer to enter into, maintain, breach,
cancel, or terminate a membership agreement or marketing contract with
an association of producers or a contract with a covered person;
`(4) to pay or loan money, give any thing of value, or offer any other
inducement or reward to a producer for refusing to or ceasing to belong
to an association of producers;
`(5) to make false reports about the finances, management, or activities
of an association of producers or covered persons;
`(6) to conspire, combine, agree, or arrange with any other person to
do, or aid or abet the performance of, any act made unlawful by this Act;
`(7)(A) to interfere with the formation or administration of any association
of producers; or
`(B) to contribute financial or other support to an association of producers;
or
`(8) to fail to bargain in good faith with an association of producers.
`(b) Any Unlawful Act in Production Contracts- It shall be unlawful for
a covered person that is a party to a production contract--
`(1) to fail to act in good faith with respect to the performance and
enforcement of the production contract;
`(2) to fail to include 1 or more cover pages that disclose provisions
of the production contract relating to--
`(C) renewal and renegotiation standards;
`(D) responsibility for environmental damage;
`(E) factors to be used in determining payment;
`(F) responsibility for obtaining and complying with Federal, State,
and local permits;
`(H) the applicable State law and venue;
`(I) the effect of oral modifications;
`(J) remedies for breach;
`(K) in the case of a livestock or poultry production contract, the
minimum number of animals subject to the contract;
`(L) other rules or provisions incorporated in the contract by reference;
and
`(M) any other terms that the Secretary determines to be appropriate
for disclosure; or
`(3) to violate any of the requirements relating to production contracts
under section 204.
`(c) Public Policy Considerations- In determining whether an act, device,
or anti-competitive practice described in section 201(a), with respect to
the production of an agricultural commodity, is unfair, a court may consider
whether--
`(1) a reasonable person would consider the act, device, or practice unfair
under the circumstances, whether or not the act, device, or practice has
previously been found unlawful; or
`(2) the act, device, or practice may violate standards established by
Federal or State law (including common law and regulations).
`SEC. 203. PRODUCTION CONTRACTS AND MARKETING CONTRACTS.
`(a) Confidentiality- Any provision of a production contract or a marketing
contract that requires that the production contract or marketing contract
remain confidential is void, except as the provision applies to a trade
secret to which section 552 of title 5, United States Code, applies.
`(b) Arbitration- If a livestock or poultry contract or marketing contract
provides for the use of arbitration to resolve a controversy under the livestock
or poultry contract or marketing contract, arbitration may be used to settle
the controversy only if, after the controversy arises, both parties consent
in writing to use arbitration to settle the controversy.
`SEC. 204. PRODUCTION CONTRACTS.
`(a) Right of Contract Producers To Cancel Production Contracts-
`(1) IN GENERAL- A contract producer may cancel a production contract
by mailing a cancellation notice to the contractor not later than the
later of--
`(A) the date that is 3 business days after the date on which the production
contract is executed; or
`(B) any cancellation date specified in the production contract.
`(2) DISCLOSURE- A production contract shall clearly disclose--
`(A) the right of the contract producer to cancel the production contract;
`(B) the method by which the contract producer may cancel the production
contract; and
`(C) the deadline for canceling the production contract.
`(b) Production Contracts Involving Investment Requirements-
`(1) APPLICABILITY- This subsection applies only to a production contract
between a contract producer and a contractor if, but for the production
contract, the contract producer would not have made a capital investment
of $100,000 or more.
`(2) RESTRICTIONS ON CONTRACT TERMINATION-
`(A) NOTICE OF TERMINATION- Except as provided in subparagraph (C),
a contractor shall not terminate or cancel a production contract unless
the contractor provides the contract producer with written notice of
the intention of the contractor to terminate or cancel the production
contract at least 180 days before the effective date of the termination
or cancellation.
`(B) REQUIREMENTS- The written notice required under subparagraph (A)
shall include alleged causes of the termination.
`(C) EXCEPTIONS- A contractor may terminate or cancel a production contract
without notice as required under subparagraph (A) if the basis for the
termination or cancellation is--
`(i) a voluntary abandonment of the contractual relationship by the
contract producer, such as a complete failure of the contract producer
to perform under the production contract;
`(ii) the conviction of the contract producer of an offense of fraud
or theft committed against the contractor; or
`(iii) the natural end of the production contract in accordance with
the terms of the production contract.
`(i) IN GENERAL- If, not later than 180 days after the date on which
the contract producer receives written notice under subparagraph (A),
the contract producer remedies each cause of the breach of contract
alleged in the written notice, the contractor may not terminate or
cancel a production contract under this paragraph.
`(ii) NO ADMISSION OF BREACH- The remedy or attempt to remedy the
causes for the breach of contract by the contract producer under clause
(i) does not constitute an admission of breach of contract.
`(c) Additional Capital Investments in Production Contracts-
`(1) IN GENERAL- A covered person shall not require a contract producer
to make additional capital investments in connection with a production
contract that exceed the initial investment requirements of the production
contract.
`(2) EXCEPTIONS- Notwithstanding paragraph (1), a covered person may require
additional capital investments if--
`(A) the additional capital investments are offset by reasonable additional
consideration, including compensation or a modification to the terms
of the production contract; and
`(B) the contract producer agrees in writing that there is acceptable
and satisfactory consideration for the additional capital investment.
`SEC. 205. AUTHORITY OF SECRETARY TO PROMULGATE RULES AND REGULATIONS.
`The Secretary, acting through the Special Counsel for Competition Matters,
may promulgate such rules and regulations as are necessary to carry out
this Act and the Packers and Stockyards Act, 1921 (7 U.S.C. 181 et seq.),
including rules and regulations--
`(1) relating to unfair, unjustly discriminatory, or deceptive acts, devices,
or anti-competitive practices in agriculture;
`(2) that define with specificity any act, device, or practice that is
to be prohibited as unfair, unjustly discriminatory, or any deceptive
act, device, or anti-competitive practice in agriculture under section
201 or 202; and
`(3) to prevent any unfair, unjustly discriminatory, or deceptive act,
device, or anti-competitive practice from occurring in agriculture.
`SEC. 206. ENFORCEMENT.
`(a) Civil Actions by the Secretary Against Covered Persons- In any case
in which the Secretary has reasonable cause to believe that any covered
person has engaged in any act or practice that violates this Act, the Secretary
may bring a civil action in the United States district court of the jurisdiction
of residence of the covered person by filing a complaint requesting preventive
relief, including an application for a permanent or temporary injunction,
restraining order, or other order, against the covered person.
`(b) Civil Actions Against Covered Persons-
`(A) IN GENERAL- In any case in which any covered person has engaged,
or there are reasonable grounds to believe that any covered person is
about to engage, in any act or practice prohibited by this Act, a civil
action for preventive relief, including an application for a permanent
or temporary injunction, restraining order, or other order, may be instituted
by the person aggrieved in the United States district court of the jurisdiction
of residence of the aggrieved person.
`(B) SECURITY- The court may provide that no restraining order or preliminary
injunction shall issue unless security is provided by the applicant,
in such sum as the court determines to be appropriate, for the payment
of such costs and damages as may be incurred or suffered by any party
that is found to have been wrongfully enjoined or restrained.
`(A) IN GENERAL- Any person injured in the business or property of the
person by reason of any violation of, or combination or conspiracy to
violate, this Act may bring a civil action in the United States district
court of the jurisdiction of residence of the injured person or any
State court of competent jurisdiction to recover--
`(i) damages sustained by the person as a result of the violation;
and
`(ii) any additional penalty that the court may allow, but not more
than $1,000 per violation.
`(B) LIMITATION ON ACTIONS- A civil action under subparagraph (A) shall
be barred unless commenced within 4 years after the cause of action
accrues.
`(3) ATTORNEYS' FEES- In any action commenced under paragraph (1) or (2),
the court may allow the prevailing party the costs of the litigation,
including reasonable attorneys' fees.
`(c) Jurisdiction of District Courts- Not later than 4 years after the date
on which a violation of this Act occurs, an action to enforce this Act may
be brought in--
`(1) the United States district court of the jurisdiction of residence
of the aggrieved person, notwithstanding the fact that an aggrieved person
has not exhausted all administrative or other remedies provided by law;
or
`(2) any other court of competent jurisdiction in the State of residence
of the aggrieved person.
`(d) Choice of Law, Jurisdiction, and Venue-
`(1) CHOICE OF LAW- Any provision in a production contract requiring the
application of the law of a State other than the State in which the producer
resides is void and unenforceable.
`(2) JURISDICTION- A covered person that enters into a production contract
with a producer shall be subject to personal jurisdiction in the State
in which the producer resides.
`(3) VENUE- Venue shall be determined on the basis of the residence of
the producer.
`(e) Liability for Acts of Agents- In the construction and enforcement of
this Act, the act, omission, or failure of any officer, agent, or person
acting for or employed by any other person within the scope of the employment
or office of the officer, agent, or person, shall be considered to be the
act, omission, or failure of the other person.
`SEC. 207. EFFECT ON OTHER LAWS.
`(1) IN GENERAL- Subject to paragraph (2), this Act does not annul, alter,
or affect, or exempt any person subject to this Act from complying with,
the law of any State with respect to trade practices in agriculture.
`(A) IN GENERAL- This Act annuls, alters, or affects, or exempts a person
from, a State law referred to in paragraph (1) to the extent the State
law is inconsistent with this Act.
`(B) INCONSISTENCY- For the purposes of this paragraph, a State law
is not inconsistent with this Act if the protection that the law affords
any producer is greater than the protection provided to a producer by
this Act.
`(b) State Courts- This Act does not deprive a State court of jurisdiction
under a State law dealing with the same subject as this Act.
`(c) Relationship to Other Laws- The Packers and Stockyards Act, 1921 (7
U.S.C. 181 et seq.) and the Perishable Agricultural Commodities Act, 1930
(7 U.S.C. 499a et seq.) shall control if there is a conflict between those
Acts and section 206.
`SEC. 208. ASSIGNMENT OF ASSOCIATION DUES AND FEES.
`(a) In General- A producer of an agricultural commodity or service may
execute, as a clause in a production contract or a marketing contract, an
assignment of dues or fees to, or the deduction of a sum to be retained
by, an association of producers authorized by contract to represent the
producer, under which assignment a covered person shall--
`(1) deduct a portion of the amount to be paid for products or services
of the producer under a production contract or a marketing contract; and
`(2) pay, on behalf of the producer, the portion over to the association
as dues or fees or a sum to be retained by the association.
`(b) Duty of Covered Person- After a covered person receives notice from
a producer of an assignment under subsection (a), the covered person shall--
`(1) deduct the amount authorized by the assignment from the amount paid
for any agricultural commodity sold by the producer or for any service
rendered under any production contract or marketing contract; and
`(2) on payment to producers for the product or service, pay the amount
over to the association or the assignee of the association.
`SEC. 209. SEVERABILITY.
`If any provision of this Act or application of any provision of this Act
is held invalid, the remainder of this Act and the application of the provision
to other persons and circumstances shall not be affected by the invalidity.'.
SEC. 102. APPLICATION.
The amendment made by section 101 applies to any contract entered into on
or after the date of enactment of this Act.
TITLE II--PACKERS AND STOCKYARDS
SEC. 201. INVESTIGATION OF LIVE POULTRY DEALERS.
(a) Removal of Poultry Slaughter Requirement From Definitions- Section 2(a)
of the Packers and Stockyards Act, 1921 (7 U.S.C. 182(a)), is amended--
(1) by striking paragraph (8) and inserting the following:
`(A) IN GENERAL- The term `poultry grower' means any person engaged
in the business of raising or caring for live poultry under a poultry
growing arrangement, regardless of whether the poultry is owned by the
person or by another person.
`(B) EXCLUSION- The term `poultry grower' does not include an employee
of the owner of live poultry described in subparagraph (A).';
(2) in paragraph (9), by striking `and cares for live poultry for delivery,
in accord with another's instructions, for slaughter' and inserting `or
cares for live poultry in accordance with the instructions of another
person'; and
(3) in paragraph (10), by striking `for the purpose of either slaughtering
it or selling it for slaughter by another'.
(b) Administrative Enforcement Authority Over Live Poultry Dealers- Sections
203, 204, and 205 of the Packers and Stockyards Act, 1921 (7 U.S.C. 193,
194, 195), are amended by inserting `or live poultry dealer' after `packer'
each place it appears.
(c) Authority To Request Temporary Injunction or Restraining Order- Section
408 of the Packers and Stockyards Act, 1921 (7 U.S.C. 228a), is amended
in the first sentence by striking `on account of poultry' and inserting
`on account of poultry or poultry care'.
(d) Violations by Live Poultry Dealers-
(1) PENALTY- Section 203(b) of the Packers and Stockyards Act, 1921 (7
U.S.C. 193(b)) is amended in the third sentence by striking `$10,000'
and inserting `$22,000'.
(2) REPEALS- Sections 411, 412, and 413 of the Packers and Stockyards
Act, 1921 (7 U.S.C. 228b-2, 228b-3, 228b-4)), are repealed.
SEC. 202. NO COMPETITIVE INJURY REQUIREMENT.
Section 202 of the Packers and Stockyards Act, 1921 (7 U.S.C. 192), is amended--
(1) in subsection (a), by inserting after `device' the following: `, regardless
of whether the practice or device causes a competitive injury or otherwise
adversely affects competition and regardless of any alleged business justification
for the practice or device'; and
(2) in subsection (e), by inserting after `commerce' the following: `,
regardless of whether the course of business or act causes a competitive
injury or otherwise adversely affects competition and regardless of any
alleged business justification for the course of business or act'.
SEC. 203. ATTORNEYS' FEES.
Section 308(a) of the Packers and Stockyards Act, 1921 (7 U.S.C. 209(a))
is amended by inserting before the period at the end the following: `and
for the costs of the litigation, including reasonable attorneys' fees'.
SEC. 204. APPOINTMENT OF OUTSIDE COUNSEL.
Section 407(a) of the Packers and Stockyards Act, 1921 (7 U.S.C. 228(a)),
is amended by inserting `obtain the services of attorneys who are not employees
of the Federal Government,' before `and make such expenditures'.
SEC. 205. REGULATIONS.
(a) In General- Not later than 180 days after the date of enactment of this
Act, the Secretary of Agriculture shall promulgate regulations to implement
the amendments made by this Act, including providing a definition of the
term `unreasonable preference or advantage' for purposes of section 202(b)
of the Packers and Stockyards Act, 1921 (7 U.S.C. 192(b)).
(b) Requirements- Regulations promulgated under subsection (a) shall strictly
prohibit any preferences or price differences based on volume except for
preferences or price differences that reflect actual, verifiable lower costs
of acquiring livestock from larger volume producers.
END
