Title: SALE Act of 2017
Policy area: Agriculture and Food

Summary:
Securing All Livestock Equitably Act of 2017 or the SALE Act of 2017
This bill amends the Packers and Stockyards Act, 1921 to require all livestock purchased by a dealer in cash sales and all inventories of, or receivables or proceeds from, such livestock to be held by the dealer in a trust until all unpaid cash sellers of the livestock have been paid. The bill exempts from the requirement any dealer whose average annual purchases of livestock do not exceed $500,000.

[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4058 Introduced in House (IH)]

<DOC>






115th CONGRESS
  1st Session
                                H. R. 4058

   To amend the Packers and Stockyards Act, 1921, to provide for the 
establishment of a trust for the benefit of all unpaid cash sellers of 
                   livestock, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            October 12, 2017

 Mr. Marshall (for himself, Mr. Rouzer, Mr. Comer, Mr. Young of Iowa, 
Mrs. Hartzler, Mr. Smith of Missouri, Mr. King of Iowa, Mr. Thompson of 
Pennsylvania, Mr. Yoho, Mr. Costa, Mrs. Bustos, Ms. Sewell of Alabama, 
Mr. Soto, Mr. Arrington, and Mr. Lucas) introduced the following bill; 
           which was referred to the Committee on Agriculture

_______________________________________________________________________

                                 A BILL


 
   To amend the Packers and Stockyards Act, 1921, to provide for the 
establishment of a trust for the benefit of all unpaid cash sellers of 
                   livestock, and for other purposes.

    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 ``Securing All Livestock Equitably Act 
of 2017'' or the ``SALE Act of 2017''.

SEC. 2. ESTABLISHMENT OF TRUST FOR BENEFIT OF UNPAID CASH SELLERS OF 
              LIVESTOCK.

    The Packers and Stockyards Act, 1921, is amended by inserting after 
section 317 (7 U.S.C. 217a) the following new section:

``SEC. 318. STATUTORY TRUST ESTABLISHED; DEALER.

    ``(a) Establishment.--
            ``(1) In general.--All livestock purchased by a dealer in 
        cash sales and all inventories of, or receivables or proceeds 
        from, such livestock shall be held by the dealer in trust for 
        the benefit of all unpaid cash sellers of such livestock until 
        full payment has been received by such unpaid cash sellers.
            ``(2) Exemption.--Any dealer whose average annual purchases 
        of livestock do not exceed $500,000 shall be exempt from the 
        provisions of this section.
            ``(3) Effect of dishonored instruments.--For purposes of 
        determining full payment under paragraph (1), a payment to an 
        unpaid cash seller shall not be considered to have been made if 
        the unpaid cash seller receives a payment instrument which is 
        dishonored.
    ``(b) Enforcement.--If a dealer fails to perform the duties 
required by subsection (a), the Secretary shall take such action as is 
necessary to enforce the trust. 
    ``(c) Preservation of Trust.--An unpaid cash seller shall lose the 
benefit of a trust under subsection (a) if the unpaid cash seller has 
not preserved the trust by giving written notice to the dealer involved 
and filing such notice with the Secretary--
            ``(1) within 30 days of the final date for making a payment 
        under section 409 in the event that a payment instrument has 
        not been received; or
            ``(2) within 15 business days after the date on which the 
        seller receives notice that the payment instrument promptly 
        presented for payment has been dishonored.
    ``(d) Notice to Lien Holders.--When a dealer receives notice under 
subsection (c) with respect to a trust, the dealer shall, within 15 
business days, give notice to all persons who have recorded a security 
interest in, or lien on, the livestock held in such trust.
    ``(e) Cash Sales Described.--For the purpose of this section, a 
cash sale means a sale in which the seller does not expressly extend 
credit to the buyer.''.
                                 <all>