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 agricul-
tural 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 with-
in the jurisdiction of the committee concerned
A BILL
To prohibit excessive concentration resulting from mergers
among certain purchasers, processors, and sellers of live-
stock, poultry, and basic agricultural commodities; to
require the Attorney General to establish an Office of
Special Counsel for Agriculture, and for other purposes.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘Agriculture Competi-
tion Enhancement Act of 2001’’.
SEC. 2. LIMITATION ON MERGERS.
It shall be unlawful for a person in the business of
purchasing livestock, poultry, or a basic agricultural com-
modity for wholesale resale either unprocessed or proc-
essed, to acquire directly or indirectly the voting securities
or assets of any person if—
(1) the total amount of—
(A) voting securities, or assets relating to
the purchasing, processing, or selling of live-
stock, poultry, or a basic agricultural com-
modity; or
(B) annual net sales of such livestock,
poultry, or basic agricultural commodity;
of each person exceeds $1,000,000,000; and
(2) the acquisition of such voting securities or
such assets by the acquiring person would reduce
competition so as to have a negative effect on prices
paid to producers of any livestock, poultry, or basic
agricultural commodities.
SEC. 3. PREMERGER NOTICE REQUIREMENT.
(a) NOTICE.—Whenever a person in the business of
purchasing livestock, poultry, or a basic agricultural com-
modity for wholesale resale either unprocessed or proc-
essed, files a notification under section 7A of the Clayton
Act (15 U.S.C. 18a), such person shall file simultaneously
with the Secretary a notice in accordance with rules issued
by the Secretary, that such person has filed such notifica-
tion.
(b) PUBLIC COMMENTS.—The Secretary shall—
(1) publish promptly in the Federal Register a
copy of each notice received under subsection (a),
(2) accept public comments on the proposed
merger described in such notice, and
(3) consider as part of the review required by
subsection (c), such comments timely received.
(c) REVIEW.—Not later than 30 days after receiving
a notice filed under subsection (a), the Secretary shall—
(1) review the proposed acquisition described in
such notice;
(2) determine—
(A) the probable effects such acquisition
would have on the prices paid to producers of
any livestock, poultry, or basic agricultural
commodities who sell to, buy from, or bargain
with 1 or more of the persons involved in the
proposed acquisition; and
(B) whether such acquisition would—
(i) result in significantly increased
market power for any of such persons; and
(ii) increase the potential for anti-
competitive or predatory pricing conduct
by any of such persons;
(3) prepare a report containing—
(A) the detailed findings made by the Sec-
retary as a result of such review and such de-
termination; and
(B) an economic analysis of the Secretary
regarding whether such acquisition may sub-
stantially lessen competition or tend to create a
monopoly; and
(4) transmit to the Office of Special Counsel for
Agriculture, and shall publish in the Federal Reg-
ister, simultaneously, a copy of such report.
SEC. 4. ENFORCEMENT PROVISIONS.
Sections 4B, 4C, 4E, 4F, 4G, 4H, 12, 13, 15, and
16 of the Clayton Act (15 U.S.C. 15b, 15c, 15e, 15f, 15g,
15h, 22, 23, 25, 26a) shall apply with respect to a viola-
tion of section 2 in the same manner as such sections
apply with respect to a violation of the antitrust laws.
SEC. 5. SPECIAL COUNSEL FOR AGRICULTURE.
(a) ESTABLISHMENT
OF OFFICE.—The Attorney
General shall establish in the Department of Justice an
Office of Special Counsel for Agriculture that shall handle
agricultural antitrust issues and related matters, as deter-
mined by the Attorney General.
(b) APPOINTMENT.—The Special Counsel for Agri-
culture may be appointed by the Attorney General only
after the expiration of the 30-day period beginning on the
date the Attorney General publishes in the Federal Reg-
ister the name of the individual proposed to be appointed
and requests public comment with respect to the appoint-
ment of such individual.
SEC. 6. GAO STUDY.
(a) IN GENERAL.—The Comptroller General shall
conduct a study and make findings and recommendations
with respect to—
(1) whether the Grain Inspection, Packers and
Stockyard Administration needs additional resources
in order to expand its capability to monitor and in-
vestigate the competitive implications of structural
changes and practices in the meat packing industry;
and
(2) whether there are disparities in the Grain
Inspection, Packers and Stockyard Administration’s
administrative authority with regard to the poultry,
beef, and pork industries.
(b) REPORT.—The Comptroller General shall submit
a report to Congress on the study, findings, and rec-
ommendations required by subsection (a) not later than
1 year after the date of enactment of this Act.
SEC. 7. DEFINITIONS.
For purposes of this Act—
(1) the term ‘‘antitrust laws’’ has the meaning
given such term in subsection (a) of the 1st section
of the Clayton Act (15 U.S.C. 12(a)),
(2) the term ‘‘basic agricultural commodity’’
means corn, wheat, or soybeans,
(3) the term ‘‘livestock’’ means cattle, sheep,
goats, swine, or equine animals used for food or in
the production of food,
(4) the term ‘‘person’’ has the meaning given
such term in subsection (a) of the 1st section of the
Clayton Act (15 U.S.C. 12(a)),
(5) the term ‘‘poultry’’ means chickens, turkeys,
ducks, geese, or other domestic fowl used for food or
in the production of food, and
(6) the term ‘‘Secretary’’ means the Secretary
of Agriculture.
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