To amend title 9, United States Code, to provide for greater fairness in the arbitration process relating to livestock and poultry contracts.

January 7, 2003

Mr. GRASSLEY (for himself, Mr. FEINGOLD, Mr. ENZI, and Mr. HARKIN) introduced the following bill; which was read twice and referred to the Committee on the Judiciary

To amend title 9, United States Code, to provide for greater fairness in the arbitration process relating to livestock and poultry contracts.

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

SECTION 1. SHORT TITLE.

This Act may be cited as the `Fair Contracts for Growers Act of 2003'.

SEC. 2. ELECTION OF ARBITRATION.

(a) IN GENERAL- Chapter 1 of title 9, United States Code, is amended by adding at the end the following:

`Sec. 17. Livestock and poultry contracts

`(a) DEFINITIONS- In this section:

`(1) LIVESTOCK- The term `livestock' has the meaning given the term in section 2(a) of the Packers and Stockyards Act, 1921 (7 U.S.C. 182(a)).

`(2) LIVESTOCK OR POULTRY CONTRACT- The term `livestock or poultry contract' means any growout contract, marketing agreement, or other arrangement under which a livestock or poultry grower raises and cares for livestock or poultry.

`(3) LIVESTOCK OR POULTRY GROWER- The term `livestock or poultry grower' means any person engaged in the business of raising and caring for livestock or poultry in accordance with a livestock or poultry contract, whether the livestock or poultry is owned by the person or by another person.

`(4) POULTRY- The term `poultry' has the meaning given the term in section 2(a) of the Packers and Stockyards Act, 1921 (7 U.S.C. 182(a)).

`(b) CONSENT TO ARBITRATION- If a livestock or poultry contract provides for the use of arbitration to resolve a controversy under the livestock or poultry 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.

`(c) EXPLANATION OF BASIS FOR AWARDS- If arbitration is elected to settle a dispute under a livestock or poultry contract, the arbitrator shall provide to the parties to the contract a written explanation of the factual and legal basis for the award.'.

(b) TECHNICAL AND CONFORMING AMENDMENT- The table of sections for chapter 1 of title 9, United States Code, is amended by adding at the end the following:

`17. Livestock and poultry contracts.'.

SEC. 3. EFFECTIVE DATE.

The amendments made by section 2 shall apply to a contract entered into, amended, altered, modified, renewed, or extended after the date of enactment of this Act.

END