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‘‘(1) have jurisdiction of proceedings instituted
pursuant to this section; and
‘‘(2) exercise that jurisdiction without regard to
whether the aggrieved party shall have exhausted any
administrative or other remedies that may be pro-
vided by law.
‘‘(d) LIABILITY FOR ACTS OF AGENTS.—In the con-
struction and enforcement of this Act, the act, omission, or
failure of any officer, agent, or person acting for or em-
ployed by any other person within the scope of the employ-
ment or office of the officer, agent, or person, shall be consid-
ered to be the act, omission, or failure of the other person.
‘‘(e) RELATIONSHIP TO STATE LAW.—Nothing in this
Act—
‘‘(1) changes or modifies State law in effect on
the date of enactment of this subsection; or
‘‘(2) deprives a State court of jurisdiction.’’.
SEC. 10104. RULES AND REGULATIONS.
The Agricultural Fair Practices Act of 1967 is amend-
ed by inserting after section 5 (as added by section 10103)
the following:
‘‘SEC. 6. RULES AND REGULATIONS.
‘‘The Secretary may promulgate such rules and regula-
tions as are necessary to carry out this Act, including rules
or regulations necessary to clarify what constitutes fair and
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normal dealing for purposes of the selection of customers
by handlers.’’.
Subtitle C—Packers and
Stockyards
SEC. 10201. SPECIAL COUNSEL FOR AGRICULTURAL COM-
PETITION.
(a) IN GENERAL.—The Packers and Stockyards Act,
1921 (7 U.S.C. 181 et seq.) is amended—
(1) by striking the title I heading and all that
follows through ‘‘This Act’’ and inserting the fol-
lowing:
‘‘TITLE I—GENERAL PROVISIONS
‘‘Subtitle A—Definitions
‘‘SEC. 1. SHORT TITLE.
‘‘This Act’’; and
(2) by inserting after section 2 (7 U.S.C. 183)
the following:
‘‘Subtitle B—Special Counsel for
Agricultural Competition
‘‘SEC. 11. SPECIAL COUNSEL FOR AGRICULTURAL COMPETI-
TION.
‘‘(a) ESTABLISHMENT.—
‘‘(1) IN GENERAL.—There is established within
the Department of Agriculture an office to be known
as the ‘Office of Special Counsel for Agricultural
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Competition’ (referred to in this section as the ‘Of-
fice’).
‘‘(2) DUTIES.—The Office shall—
‘‘(A) have responsibility for all duties and
functions of the Packers and Stockyards pro-
grams of the Department of Agriculture;
‘‘(B) investigate and prosecute violations of
this Act and the Agricultural Fair Practices Act
of 1967 (7 U.S.C. 2301 et seq.);
‘‘(C) serve as a liaison between, and act in
consultation with, the Department of Agri-
culture, the Department of Justice, and the Fed-
eral Trade Commission with respect to competi-
tion and trade practices in the food and agricul-
tural sector; and
‘‘(D) maintain a staff of attorneys and
other professionals with the appropriate exper-
tise.
‘‘(b) SPECIAL COUNSEL FOR AGRICULTURAL COMPETI-
TION.—
‘‘(1) IN GENERAL.—The Office shall be headed by
the Special Counsel for Agricultural Competition (re-
ferred to in this section as the ‘Special Counsel’), who
shall be appointed by the President, by and with the
advice and consent of the Senate.
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‘‘(2) INDEPENDENCE OF SPECIAL AUTHORITY.—
‘‘(A) IN
GENERAL.—The Special Counsel
shall report to and be under the general super-
vision of the Secretary.
‘‘(B) DIRECTION, 
CONTROL, 
AND
SUP-
PORT.—The Special Counsel shall be free from
the direction and control of any person in the
Department of Agriculture other than the Sec-
retary.
‘‘(C) PROHIBITION
ON
DELEGATION.—The
Secretary may not delegate any duty described
in subsection (a)(2) to any other officer or em-
ployee of the Department other than the Special
Counsel.
‘‘(D) REPORTING REQUIREMENT.—
‘‘(i) IN
GENERAL.—Twice each year,
the Special Counsel shall submit to the
Committee on Agriculture of the House of
Representatives and the Committee on Agri-
culture, Nutrition, and Forestry of the Sen-
ate a report that shall include, for the rel-
evant reporting period, a description of—
‘‘(I) the number of complaints
that the Special Counsel has received
and closed;
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‘‘(II)(aa) the number of investiga-
tions and civil and administrative ac-
tions that the Special Counsel has ini-
tiated, carried out, and completed, in-
cluding the number of notices given to
regulated entities for violations of this
Act or the Agricultural Fair Practices
Act of 1967 (7 U.S.C. 2301 et seq.);
‘‘(bb) the number and types of de-
cisions agreed to; and
‘‘(cc) the number of stipulation
agreements; and
‘‘(III) the number of investiga-
tions and civil and administrative ac-
tions that the Secretary objected to or
prohibited from being carried out, and
the stated purpose of the Secretary for
each objection or prohibition.
‘‘(ii) REQUIREMENT.—The basis for
each complaint, investigation, or civil or
administrative action described in a report
under clause (i) shall—
‘‘(I) be organized by species; and
‘‘(II) indicate if the complaint,
investigation, or civil or administra-
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tion action was for anti-competitive,
unfair, or deceptive practices under
this Act or was a violation of the Agri-
cultural Fair Practices Act of 1967 (7
U.S.C. 2301 et seq.).
‘‘(E) REMOVAL.—
‘‘(i) IN GENERAL.—The Special Coun-
sel may be removed from office by the Presi-
dent.
‘‘(ii) COMMUNICATION.—The President
shall communicate the reasons for any such
removal to both Houses of Congress.
‘‘(3) PROSECUTORIAL
AUTHORITY.—Subject to
paragraph (4), the Special Counsel may commence,
defend, or intervene in, and supervise the litigation
of, any civil or administrative action authorized
under this Act or the Agricultural Fair Practices Act
of 1967 (7 U.S.C. 2301 et seq.).
‘‘(4) PROCEDURE FOR EXERCISE OF AUTHORITY
TO LITIGATE OR APPEAL.—
‘‘(A) IN GENERAL.—Prior to commencing,
defending, or intervening in any civil action
under this Act or the Agricultural Fair Practices
Act of 1967 (7 U.S.C. 2301 et seq.), the Special
Counsel shall give written notification to, and
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attempt to consult with, the Attorney General
with respect to the proposed action.
‘‘(B) FAILURE TO RESPOND.—If, not later
than 45 days after the date of provision of notifi-
cation under subparagraph (A), the Attorney
General has failed to commence, defend, or inter-
vene in the proposed action, the Special Counsel
may commence, defend, or intervene in, and su-
pervise the litigation of, the action and any ap-
peal of the action in the name of the Special
Counsel.
‘‘(C) AUTHORITY
OF
ATTORNEY
GENERAL
TO INTERVENE.—Nothing in this paragraph pre-
cludes the Attorney General from intervening on
behalf of the United States in any civil action
under this Act or the Agricultural Fair Practices
Act of 1967 (7 U.S.C. 2301 et seq.), or in any
appeal of such action, as may be otherwise pro-
vided by law.
‘‘(c) RELATIONSHIP TO OTHER PROVISIONS.—Nothing
in this section modifies or otherwise effects subsections (a)
and (b) of section 406.’’.
(b) CONFORMING AMENDMENT.—Section 5315 of title
5, United States Code, is amended by adding at the end
the following:
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‘‘Special Counsel for Agricultural Competition.’’.
SEC. 10202. INVESTIGATION OF LIVE POULTRY DEALERS.
(a) REMOVAL
OF POULTRY SLAUGHTER REQUIRE-
MENT 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:
‘‘(8) POULTRY GROWER.—
‘‘(A) IN
GENERAL.—The term ‘poultry
grower’ means any person engaged in the busi-
ness 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 grow-
er’ 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 in-
structions, 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 pur-
pose of either slaughtering it or selling it for slaughter
by another’’.
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(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 deal-
er’’ 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 in-
serting ‘‘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. 10203. PRODUCTION CONTRACTS.
(a) DEFINITIONS.—Section 2(a) of the Packers and
Stockyards Act, 1921 (7 U.S.C. 182(a)) is amended—
(1) by striking ‘‘When used in this Act—’’ and
inserting ‘‘In this Act:’’;
(2) by striking paragraph (1);
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(3) by redesignating paragraphs (2), (3), (4),
(5), (6), (7), (8), (9), (10), (11), (12), (13), and (14)
as paragraphs (15), (6), (8), (9), (10), (13), (11),
(12), (7), (2), (16), (17), and (18), respectively, in-
denting appropriately, and moving those paragraphs
so as to appear in numerical order;
(4) in each paragraph (as so redesignated) that
does not have a heading, by inserting a heading, in
the same style as the heading in the amendment made
by paragraph (5), the text of which is comprised of
the term defined in the paragraph;
(5) by inserting before paragraph (2) (as so des-
ignated) the following:
‘‘(1) CAPITAL INVESTMENT.—The term ‘capital
investment’ means an investment in—
‘‘(A) a structure, such as a building or ma-
nure storage structure; or
‘‘(B) machinery or equipment associated
with producing livestock or poultry that has a
useful life of more than 1 year.’’;
(6) by inserting after paragraph (2) (as so redes-
ignated) the following:
‘‘(3) CONTRACTOR.—
‘‘(A) IN GENERAL.—The term ‘contractor’
means a person that, in accordance with a pro-
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duction contract, obtains livestock or poultry
that is produced by a contract producer.
‘‘(B) INCLUSIONS.—The term ‘contractor’
includes—
‘‘(i) a live poultry dealer; and
‘‘(ii) a swine contractor.
‘‘(4) CONTRACT PRODUCER.—
‘‘(A) IN GENERAL.—The term ‘contract pro-
ducer’ means a producer that produces livestock
or poultry under a production contract.
‘‘(B) INCLUSIONS.—The term ‘contract pro-
ducer’ includes—
‘‘(i) a poultry grower; and
‘‘(ii) a swine production contract
grower.
‘‘(5) INVESTMENT REQUIREMENT.—The term ‘in-
vestment requirement’ means—
‘‘(A) a provision in a production contract
that requires a contract producer to make a cap-
ital investment associated with producing live-
stock or poultry that, but for the production con-
tract, the contract producer would not have
made; or
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‘‘(B) a representation by a contractor that
results in a contract producer making a capital
investment.’’; and
(7) by inserting after paragraph (13) (as so re-
designated) the following:
‘‘(14) PRODUCTION CONTRACT.—
‘‘(A) IN GENERAL.—The term ‘production
contract’ means a written agreement that pro-
vides for—
‘‘(i) the production of livestock or poul-
try by a contract producer; or
‘‘(ii) the provision of a management
service relating to the production of live-
stock or poultry by a contract producer.
‘‘(B) INCLUSIONS.—The term ‘production
contract’ includes—
‘‘(i) a poultry growing arrangement;
‘‘(ii) a swine production contract;
‘‘(iii) any other contract between a
contractor and a contract producer for the
production of livestock or poultry; and
‘‘(iv) a contract between a live poultry
dealer and poultry grower, swine contractor
and swine production contract grower, or
contractor and contract producer for the
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provision of a management service in the
production of livestock or poultry.’’.
(b) PROHIBITIONS
INVOLVING
PRODUCTION
CON-
TRACTS.—Title II of the Packers and Stockyards Act, 1921
(7 U.S.C. 198 et seq.), is amended by adding at the end
the following:
‘‘SEC. 208. 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 cancella-
tion 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 exe-
cuted; 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 pro-
ducer may cancel the production contract; and
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‘‘(C) the deadline for canceling the produc-
tion contract.
‘‘(b) PRODUCTION CONTRACTS INVOLVING INVESTMENT
REQUIREMENTS.—
‘‘(1) APPLICABILITY.—This subsection applies
only to a production contract between a contract pro-
ducer and a contractor if the contract producer det-
rimentally relied on a representation by the con-
tractor or a provision in the production contract that
resulted in the contract producer making a capital
investment of $100,000 or more.
‘‘(2) 
RESTRICTIONS
ON
CONTRACT
TERMI-
NATION.—
‘‘(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 pro-
ducer with written notice of the intention of the
contractor to terminate or cancel the production
contract at least 90 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.
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‘‘(C) EXCEPTIONS.—A contractor may ter-
minate or cancel a production contract at any
time without notice as required under subpara-
graph (A) if the basis for the termination or can-
cellation is—
‘‘(i) a voluntary abandonment of the
contractual relationship by the contract
producer, such as a failure of the contract
producer to substantially perform under the
production contract;
‘‘(ii) the conviction of the contract pro-
ducer of an offense of fraud or theft com-
mitted against the contractor;
‘‘(iii) the natural end of the production
contract in accordance with the terms of the
production contract; or
‘‘(iv) because the well-being of the live-
stock or poultry subject to the contract is in
jeopardy once under the care of the contract
producer.
‘‘(D) RIGHT TO CURE.—
‘‘(i) IN GENERAL.—If, not later than
90 days after the date on which the contract
producer receives written notice under sub-
paragraph (A), the contract producer rem-
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edies each cause of the breach of contract al-
leged 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 pro-
ducer under clause (i) does not constitute
an admission of breach of contract.
‘‘(c) ADDITIONAL CAPITAL INVESTMENTS IN PRODUC-
TION CONTRACTS.—
‘‘(1) IN GENERAL.—A contractor shall not re-
quire 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 contractor may require additional capital in-
vestments if—
‘‘(A)(i) the additional capital investments
are offset by reasonable additional consideration,
including compensation or a modification to the
terms of the production contract; and
‘‘(ii) the contract producer agrees in writ-
ing that there is acceptable and satisfactory con-
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sideration for the additional capital investment;
or
‘‘(B) without the additional capital invest-
ments the well-being of the livestock or poultry
subject to the contract would be in jeopardy.
‘‘(d) NO EFFECT ON STATE LAW.—Nothing in this sec-
tion preempts or otherwise affects any State law relating
to production contracts that establishes a requirement or
standard that is more stringent than a requirement or
standard under this section.
‘‘SEC. 209. CHOICE OF LAW, JURISDICTION, AND VENUE.
‘‘(a) CHOICE OF LAW.—Any provision in a livestock
or poultry production or marketing contract requiring the
application of the law of a State other than the State in
which the production occurs is void and unenforceable.
‘‘(b) JURISDICTION.—A packer, live poultry dealer, or
swine contractor that enters into a production or marketing
contract with a producer shall be subject to personal juris-
diction in the State in which the production occurs.
‘‘(c) VENUE.—Venue shall be determined on the basis
of the location of the production, unless the producer selects
a venue that is otherwise permitted by law.
‘‘(d) APPLICATION.—This section shall apply to any
production or marketing contract entered into, amended, al-
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tered, modified, renewed, or extended after the date of enact-
ment of this section.
‘‘SEC. 210. ARBITRATION.
‘‘(a) IN GENERAL.—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.
‘‘(b) APPLICATION.—Subsection (a) shall apply to any
contract entered into, amended, altered, modified, renewed,
or extended after the date of enactment of this section.’’.
SEC. 10204. RIGHT TO DISCUSS TERMS OF CONTRACT.
Section 10503(b) of the Farm Security and Rural In-
vestment Act of 2002 (7 U.S.C. 229b(b)) is amended—
(1) in paragraph (6), by striking ‘‘or’’ at the
end;
(2) in paragraph (7), by striking the period at
the end and inserting a semicolon; and
(3) by adding at the end the following:
‘‘(8) a business associate of the party; or
‘‘(9) a neighbor of the party or other producer.’’.
SEC. 10205. ATTORNEYS’ FEES.
Section 308(a) of the Packers and Stockyards Act,
1921 (7 U.S.C. 209(a)) is amended by inserting before the
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period at the end the following: ‘‘and for the costs of the
litigation, including reasonable attorneys’ fees’’.
SEC. 10206. APPOINTMENT OF OUTSIDE COUNSEL.
Section 407 of the Packers and Stockyards Act, 1921
(7 U.S.C. 228), is amended—
(1) in subsection (a), by inserting ‘‘obtain the
services of attorneys who are not employees of the
Federal Government,’’ before ‘‘and make such expend-
itures’’; and
(2) in subsection (c), by striking ‘‘Senate Com-
mittee on Agriculture and Forestry’’ and inserting
‘‘the Committee on Agriculture, Nutrition, and For-
estry of the Senate’’.
SEC. 10207. PROHIBITION ON PACKERS OWNING, FEEDING,
OR CONTROLLING LIVESTOCK.
(a) IN GENERAL.—Section 202 of the Packers and
Stockyards Act, 1921 (7 U.S.C. 192), is amended—
(1) by redesignating subsections (f) and (g) as
subsections (g) and (h), respectively; and
(2) by inserting after subsection (e) the following:
‘‘(f) Own or feed livestock directly, through a sub-
sidiary, or through an arrangement that gives the packer
operational, managerial, or supervisory control over the
livestock, or over the farming operation that produces the
livestock, to such an extent that the producer is no longer
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materially participating in the management of the oper-
ation with respect to the production of the livestock, except
that this subsection shall not apply to—
‘‘(1) an arrangement entered into within 14
days (excluding any Saturday or Sunday) before
slaughter of the livestock by a packer, a person acting
through the packer, or a person that directly or indi-
rectly controls, or is controlled by or under common
control with, the packer;
‘‘(2) a cooperative or entity owned by a coopera-
tive, if a majority of the ownership interest in the co-
operative is held by active cooperative members
that—
‘‘(A) own, feed, or control livestock; and
‘‘(B) provide the livestock to the cooperative
for slaughter;
‘‘(3) a packer that is not required to report to
the Secretary on each reporting day (as defined in
section 212 of the Agricultural Marketing Act of 1946
(7 U.S.C. 1635a)) information on the price and
quantity of livestock purchased by the packer; or
‘‘(4) a packer that owns 1 livestock processing
plant; or’’.
(b) EFFECTIVE DATE.—
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(1) IN GENERAL.—Subject to paragraph (2), the
amendments made by subsection (a) take effect on the
date of enactment of this Act.
(2) TRANSITION RULES.—In the case of a packer
that on the date of enactment of this Act owns, feeds,
or controls livestock intended for slaughter in viola-
tion of section 202(f) of the Packers and Stockyards
Act, 1921 (as amended by subsection (a)), the amend-
ments made by subsection (a) apply to the packer—
(A) in the case of a packer of swine, begin-
ning on the date that is 18 months after the date
of enactment of this Act; and
(B) in the case of a packer of any other
type of livestock, beginning as soon as prac-
ticable, but not later than 180 days, after the
date of enactment of this Act, as determined by
the Secretary.
SEC. 10208. 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 title, including—
(1) regulations providing a definition of the term
‘‘unreasonable preference or advantage’’ for purposes
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of section 202(b) of the Packers and Stockyards Act,
1921 (7 U.S.C. 192(b)); and
(2) regulations requiring live poultry dealers to
provide written notice to poultry growers if the live
poultry dealer imposes an extended layout period in
excess of 30 days, prior to removal of the previous
flock.
(b) REQUIREMENTS.—The Secretary shall ensure that
regulations promulgated pursuant to subsection (a)(1) pre-
vent discrimination against producers with a smaller vol-
ume of business. Nothing in this subsection shall be con-
strued to require any person to enter into a business trans-
action with a producer due solely to that producer’s volume
of business.
Subtitle D—Related Programs
SEC. 
10301. 
SENSE 
OF 
CONGRESS 
REGARDING
PSEUDORABIES ERADICATION PROGRAM.
It is the sense of Congress that—
(1) the Secretary should recognize the threat that
feral swine pose to the domestic swine population and
the entire livestock industry;
(2) keeping the United States commercial swine
herd free of pseudorabies is essential to maintaining
and growing pork export markets;
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(3) pseudorabies surveillance funding is nec-
essary to assist the swine industry in the monitoring,
surveillance, and eradication of pseudorabies, includ-
ing the monitoring and surveillance of other diseases
effecting swine production and trade; and
(4) pseudorabies eradication is a high priority
that the Secretary should carry out under the Animal
Health Protection Act (7 U.S.C. 8301 et seq.).
SEC. 10302. SENSE OF CONGRESS REGARDING CATTLE
FEVER TICK ERADICATION PROGRAM.
It is the sense of Congress that—
(1) the cattle fever tick and the southern cattle
tick are vectors of the causal agent of babesiosis, a se-
vere and often fatal disease of cattle; and
(2) implementing a national strategic plan for
the cattle fever tick eradication program is a high
priority that the Secretary should carry out—
(A) to prevent the entry of cattle fever ticks
into the United States;
(B) to enhance and maintain an effective
surveillance program to rapidly detect any fever
tick incursions; and
(C) to research, identify, and procure the
tools and knowledge necessary to prevent and
eradicate cattle ticks in the United States.