II

106TH CONGRESS

1ST SESSION S. 675

To increase market transparency in agricultural markets domestically and

abroad.

IN THE SENATE OF THE UNITED STATES

MARCH 19, 1999

Mr. DASCHLE (for himself, Mr. KERREY, Mr. GRASSLEY, Mr. THOMAS, Mr.

JOHNSON, Mr. CONRAD, Mr. BAUCUS, Mr. HARKIN, Mr. DORGAN, Mr.

WELLSTONE, Mr. BINGAMAN, Mr. DURBIN, and Mr. FEINGOLD) introduced the following bill; which was read twice and referred to the Committee on Agriculture, Nutrition and Forestry

A BILL

To increase market transparency in agricultural markets

domestically and abroad.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,

3 SECTION 1. SHORT TITLE.

4 This Act may be cited as the ‘‘Agriculture Market

5 Transparency Act of 1999’’.
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1 SEC. 2. PILOT PROGRAM ON LIVESTOCK MARKET REPORT2 ING.

3 (a) IN GENERAL.—The Agricultural Marketing Act

4 of 1946 is amended by inserting after section 203 (7

5 U.S.C. 1622) the following:

6 ‘‘SEC. 203A. PILOT PROGRAM ON LIVESTOCK MARKET RE7 PORTING.

8 ‘‘(a) DEFINITIONS.—In this section:

9 ‘‘(1) LIVESTOCK.—The term ‘livestock’ means

10 cattle, sheep, and hogs.

11 ‘‘(2) LIVESTOCK PRODUCT.—The term ‘live12 stock product’ means a product or byproduct (other

13 than meat or a meat food product) of the slaugh14 tering or meat-packing industry that is derived, in

15 whole or in part, from livestock.

16 ‘‘(3) PACKER.—The term ‘packer’ has the

17 meaning given the term in section 201 of the Pack18 ers and Stockyards Act, 1921 (7 U.S.C. 191).

19 ‘‘(4) SECRETARY.—The term ‘Secretary’ means

20 the Secretary of Agriculture.

21 ‘‘(b) MANDATORY REPORTING PILOT PROGRAM.—

22 ‘‘(1) IN GENERAL.—Subject to paragraph (7),

23 the Secretary shall conduct a 3-year pilot program

24 under which the Secretary shall require each packer

25 to report to the Secretary (or a person designated by

26 the Secretary), in such manner as the Secretary
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1 shall require, such information relating to prices,

2 volume, and the terms of sale for the procurement

3 of domestic and imported livestock and livestock

4 products as the Secretary determines is appropriate.

5 ‘‘(2) ADMINISTRATION.—In carrying out para6 graph (1), the Secretary shall require packers to—

7 ‘‘(A) separately report domestic and im8 ported livestock and livestock products; and

9 ‘‘(B) report the information required to be

10 reported under paragraph (1) the next business

11 day or as soon as practicable after the procure12 ment of the livestock or livestock product.

13 ‘‘(3) NONCOMPLIANCE.—It shall be unlawful

14 for any packer to knowingly fail or refuse to provide

15 to the Secretary information required to be reported

16 under paragraph (1).

17 ‘‘(4) VERIFICATION.—The Secretary may take

18 such actions as are necessary to verify the accuracy

19 of the information required to be reported under

20 paragraph (1), regardless of the source of the infor21 mation.

22 ‘‘(5) CEASE AND DESIST AND CIVIL PEN23 ALTY.—

24 ‘‘(A) IN GENERAL.—If the Secretary has

25 reason to believe that a packer is violating
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1 paragraph (1) (including regulations promul2 gated under paragraph (1)), the Secretary,

3 after notice and opportunity for hearing, may

4 issue an order to cease and desist from con5 tinuing the violation and assess a civil penalty

6 of not more than $10,000 for each violation.

7 ‘‘(B) FACTORS.—In determining the

8 amount of a civil penalty to be assessed under

9 subparagraph (A), the Secretary shall consider

10 the gravity of the offense, the size of the busi11 ness involved, and the effect of the penalty on

12 the ability of the packer to continue in business.

13 ‘‘(6) REFERRAL TO ATTORNEY GENERAL.—If,

14 after expiration of the period for appeal or after the

15 affirmance of a civil penalty assessed under para16 graph (5), the packer against whom the civil penalty

17 is assessed fails to pay the civil penalty, the Sec18 retary may refer the matter to the Attorney General,

19 who may recover the amount of the civil penalty in

20 a civil action in United States district court.

21 ‘‘(7) APPLICATION.—This subsection shall

22 apply only to the class of the largest packers (by vol23 ume) that are engaged in the business of buying,

24 manufacturing, preparing, or marketing at least 80

25 percent of the volume of a particular type of live-
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1 stock and livestock product that is bought, manufac2 tured, prepared, or marketed in the United States,

3 as determined by the Secretary.

4 ‘‘(c) VOLUNTARY REPORTING.—The Secretary shall

5 encourage voluntary reporting by packers that are not

6 subjected to a mandatory reporting requirement under

7 subsection (b).

8 ‘‘(d) AVAILABILITY OF INFORMATION.—The Sec9 retary shall make information received under this section

10 available to the public only in a form that ensures that—

11 ‘‘(1) the identity of the packer submitting a re12 port is not disclosed; and

13 ‘‘(2) the confidentiality of proprietary business

14 information is otherwise protected.

15 ‘‘(e) EFFECT ON OTHER LAWS.—Nothing in this sec16 tion restricts or modifies the authority of the Secretary

17 to collect voluntary reports in accordance with other provi18 sions of law.’’.

19 (b) REGULATIONS.—

20 (1) IN GENERAL.—Not later than 180 days

21 after the date of enactment of this Act, the Sec22 retary of Agriculture shall promulgate such regula23 tions as are necessary to implement the amendment

24 made by subsection (a). The promulgation of the

25 regulations shall be made without regard to—
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1 (A) the notice and comment provisions of

2 section 553 of title 5, United States Code;

3 (B) the Statement of Policy of the Sec4 retary of Agriculture effective July 24, 1971

5 (36 Fed. Reg. 13804), relating to notices of

6 proposed rulemaking and public participation in

7 rulemaking; and

8 (C) chapter 35 of title 44, United States

9 Code (commonly known as the ‘‘Paperwork Re10 duction Act’’).

11 (2) CONGRESSIONAL REVIEW OF AGENCY RULE12 MAKING.—In carrying out this subsection, the Sec13 retary shall use the authority provided under section

14 808(2) of title 5, United States Code.

15 (c) CONFORMING AMENDMENT.—Section 416 of the

16 Packers and Stockyards Act, 1921 (7 U.S.C. 229a) (as

17 added by section 1127(a) of division A of Public Law 105–

18 277) is repealed.

Æ