Title: SALE Act of 2020
Policy area: Agriculture and Food

Summary:
Securing All Livestock Equitably Act of 2020 or the SALE Act of 2020
This bill requires 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 $100,000.
The bill also specifies requirements regarding enforcement, preserving a trust, notifying lien holders, and purchasing or transferring livestock that is subject to a trust.

[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6067 Introduced in House (IH)]

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116th CONGRESS
  2d Session
                                H. R. 6067

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


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             March 3, 2020

Mr. Marshall (for himself and Mr. Costa) 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 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 2020'' or the ``SALE Act of 2020''.

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 such 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 $100,000 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 that is 
        dishonored.
    ``(b) 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.
    ``(c) Notice to Lien Holders.--When a dealer receives notice under 
subsection (b) of the unpaid cash seller's intent to preserve the 
benefits of the 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.
    ``(d) Cash Sales Defined.--For the purpose of this section, a cash 
sale means a sale in which the seller does not expressly extend credit 
to the buyer.
    ``(e) Purchase of Livestock Subject to Trust.--
            ``(1) In general.--A person purchasing livestock subject to 
        a dealer trust shall receive good title to the livestock if the 
        person receives the livestock--
                    ``(A) in exchange for payment of new value; and
                    ``(B) in good faith without notice that the 
                transfer is a breach of trust.
            ``(2) Dishonored payment instrument.--Payment shall not be 
        considered to have been made if a payment instrument given in 
        exchange for the livestock is dishonored.
            ``(3) Transfer in satisfaction of antecedent debt.--A 
        transfer of livestock subject to a dealer trust is not for 
        value if the transfer is in satisfaction of an antecedent debt 
        or to a secured party pursuant to a security agreement.
    ``(f) Enforcement.--Whenever the Secretary has reason to believe 
that a dealer subject to section 318 has failed to perform the duties 
required by section 318 or whenever the Secretary has reason to believe 
that it will be in the best interest of unpaid cash sellers, the 
Secretary shall do one or more of the following--
            ``(1) appoint an independent trustee to carry out the 
        duties required by section 318, preserve trust assets, and 
        enforce the trust;
            ``(2) serve as independent trustee, preserve trust assets, 
        and enforce the trust; or
            ``(3) file suit in the United States district court for the 
        district in which the dealer resides to enjoin the dealer's 
        failure to perform the duties required by section 318, preserve 
        trust assets, and to enforce the trust. Attorneys employed by 
        the Secretary may, with the approval of the Attorney General, 
        represent the Secretary in any such suit. Nothing herein shall 
        preclude unpaid sellers from filing suit to preserve or enforce 
        the trust.''.
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