I

107TH CONGRESS

1ST SESSION H. R. 1526

To prohibit excessive concentration resulting from mergers among certain

purchasers, processors, and sellers of livestock, poultry, and basic agricultural commodities; to require the Attorney General to establish an Office

of Special Counsel for Agriculture, and for other purposes.

IN THE HOUSE OF REPRESENTATIVES

APRIL 4, 2001

Mr. THUNE (for himself and Mr. HILL) introduced the following bill; which

was referred to the Committee on the Judiciary, and in addition to the

Committee on Agriculture, for a period to be subsequently determined by

the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned

A BILL

To prohibit excessive concentration resulting from mergers

among certain purchasers, processors, and sellers of livestock, poultry, and basic agricultural commodities; to

require the Attorney General to establish an Office of

Special Counsel for Agriculture, and for other purposes.

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 Competi5 tion Enhancement Act of 2001’’.
2

•HR 1526 IH

1 SEC. 2. LIMITATION ON MERGERS.

2 It shall be unlawful for a person in the business of

3 purchasing livestock, poultry, or a basic agricultural com4 modity for wholesale resale either unprocessed or proc5 essed, to acquire directly or indirectly the voting securities

6 or assets of any person if—

7 (1) the total amount of—

8 (A) voting securities, or assets relating to

9 the purchasing, processing, or selling of live10 stock, poultry, or a basic agricultural com11 modity; or

12 (B) annual net sales of such livestock,

13 poultry, or basic agricultural commodity;

14 of each person exceeds $1,000,000,000; and

15 (2) the acquisition of such voting securities or

16 such assets by the acquiring person would reduce

17 competition so as to have a negative effect on prices

18 paid to producers of any livestock, poultry, or basic

19 agricultural commodities.

20 SEC. 3. PREMERGER NOTICE REQUIREMENT.

21 (a) NOTICE.—Whenever a person in the business of

22 purchasing livestock, poultry, or a basic agricultural com23 modity for wholesale resale either unprocessed or proc24 essed, files a notification under section 7A of the Clayton

25 Act (15 U.S.C. 18a), such person shall file simultaneously

26 with the Secretary a notice in accordance with rules issued
3

•HR 1526 IH

1 by the Secretary, that such person has filed such notifica2 tion.

3 (b) PUBLIC COMMENTS.—The Secretary shall—

4 (1) publish promptly in the Federal Register a

5 copy of each notice received under subsection (a),

6 (2) accept public comments on the proposed

7 merger described in such notice, and

8 (3) consider as part of the review required by

9 subsection (c), such comments timely received.

10 (c) REVIEW.—Not later than 30 days after receiving

11 a notice filed under subsection (a), the Secretary shall—

12 (1) review the proposed acquisition described in

13 such notice;

14 (2) determine—

15 (A) the probable effects such acquisition

16 would have on the prices paid to producers of

17 any livestock, poultry, or basic agricultural

18 commodities who sell to, buy from, or bargain

19 with 1 or more of the persons involved in the

20 proposed acquisition; and

21 (B) whether such acquisition would—

22 (i) result in significantly increased

23 market power for any of such persons; and
4

•HR 1526 IH

1 (ii) increase the potential for anti2 competitive or predatory pricing conduct

3 by any of such persons;

4 (3) prepare a report containing—

5 (A) the detailed findings made by the Sec6 retary as a result of such review and such de7 termination; and

8 (B) an economic analysis of the Secretary

9 regarding whether such acquisition may sub10 stantially lessen competition or tend to create a

11 monopoly; and

12 (4) transmit to the Office of Special Counsel for

13 Agriculture, and shall publish in the Federal Reg14 ister, simultaneously, a copy of such report.

15 SEC. 4. ENFORCEMENT PROVISIONS.

16 Sections 4B, 4C, 4E, 4F, 4G, 4H, 12, 13, 15, and

17 16 of the Clayton Act (15 U.S.C. 15b, 15c, 15e, 15f, 15g,

18 15h, 22, 23, 25, 26a) shall apply with respect to a viola19 tion of section 2 in the same manner as such sections

20 apply with respect to a violation of the antitrust laws.

21 SEC. 5. SPECIAL COUNSEL FOR AGRICULTURE.

22 (a) ESTABLISHMENT OF OFFICE.—The Attorney

23 General shall establish in the Department of Justice an

24 Office of Special Counsel for Agriculture that shall handle
5

•HR 1526 IH

1 agricultural antitrust issues and related matters, as deter2 mined by the Attorney General.

3 (b) APPOINTMENT.—The Special Counsel for Agri4 culture may be appointed by the Attorney General only

5 after the expiration of the 30-day period beginning on the

6 date the Attorney General publishes in the Federal Reg7 ister the name of the individual proposed to be appointed

8 and requests public comment with respect to the appoint9 ment of such individual.

10 SEC. 6. GAO STUDY.

11 (a) IN GENERAL.—The Comptroller General shall

12 conduct a study and make findings and recommendations

13 with respect to—

14 (1) whether the Grain Inspection, Packers and

15 Stockyard Administration needs additional resources

16 in order to expand its capability to monitor and in17 vestigate the competitive implications of structural

18 changes and practices in the meat packing industry;

19 and

20 (2) whether there are disparities in the Grain

21 Inspection, Packers and Stockyard Administration’s

22 administrative authority with regard to the poultry,

23 beef, and pork industries.

24 (b) REPORT.—The Comptroller General shall submit

25 a report to Congress on the study, findings, and rec-
6

•HR 1526 IH

1 ommendations required by subsection (a) not later than

2 1 year after the date of enactment of this Act.

3 SEC. 7. DEFINITIONS.

4 For purposes of this Act—

5 (1) the term ‘‘antitrust laws’’ has the meaning

6 given such term in subsection (a) of the 1st section

7 of the Clayton Act (15 U.S.C. 12(a)),

8 (2) the term ‘‘basic agricultural commodity’’

9 means corn, wheat, or soybeans,

10 (3) the term ‘‘livestock’’ means cattle, sheep,

11 goats, swine, or equine animals used for food or in

12 the production of food,

13 (4) the term ‘‘person’’ has the meaning given

14 such term in subsection (a) of the 1st section of the

15 Clayton Act (15 U.S.C. 12(a)),

16 (5) the term ‘‘poultry’’ means chickens, turkeys,

17 ducks, geese, or other domestic fowl used for food or

18 in the production of food, and

19 (6) the term ‘‘Secretary’’ means the Secretary

20 of Agriculture.

Æ