A bill to amend the Packers and Stockyards Act of 1921, as amended, and for other purposes.
PL 94-410 (H.R.8410), enacted 09/13/1976

PUBLIC LAW 94-410—SEPT. 13, 1976 
90 STAT. 1249 
Public Law 94-410 
94th Congress 
An Act 
To amend the Packers and Stockyards Act of 1921, as amended, and for other 
bept. 13, 1976 
purposes. 
[H.R. 8410] 
Be it enacted hy the Senate and House of Representatives 
of the 
United States of Ame7^ca in Congress assembled, That the proviso in Packers and 
the paragraph designated "Packers and Stockyards Act" under the Stockyards 
heading " M A R K P : T I N G S E R V I C P : " in the Act of July 12, 1943 
Act of 1921, 
(57 Stat. 422; 7 U.S.C. 204), is amended by striking out "market 
amendments, 
agency and dealer" and inserting in lieu thereof "market agency (as 
defined in title I I I of the Act), every packer (as defined in title I I of 7 USC 201. 
the Act) in connection with its livestock purchasing operations (except Infra. 
that those packers whose average annual purchases do not exceed 
$500,000 will be exempt from the provisions of this paragraph), and 
every other person operating as a dealer (as defined in title I I I of 
the Act)". 
SEC. 2. Section 201 of the Packers and Stockyards Act, 1921, as "Packer." 
amended (7 U.S.C. 191) is amended to read as follows: 
"SEC. 201. When used in this Act the term 'packer' means any person 
en<;aged in the business (a) of buying livestock in commerce for pur-
poses of slaughter, or (b) of manufacturing or preparing meats or 
meat food products for sale or shipment in commerce, or (c) of market-
ing meats, meat food products, or livestock products in an unmanufac-
tured form acting as a wholesale broker, dealer, or distributor in 
commerce.". 
SEC. 3. (a) Sections 202 and 312(a) of the Packers and Stockyards 
Act, 1921, as amended (7 U.S.C. 192 and 213(a)) are amended by 
deleting the phrase "in commerce" wherever it appears in those sec-
tions, and by deleting the commas immediately before and following 
the phrase "in commerce" in sections 202(b) and 312(a) of the Act 
(7U.S.C. 192(b) and213(a)). 
(b) Sections 203(b) and 312(b) of the Packers and Stockyards Act 
(7 U.S.C. 193(b) and 213(b)) are amended by adding at the end of 
both sections the following new sentences: "The Secretary may also Penalty, 
assess a civil penalty of not more than $10,000 for each such violation. 
In determining the amount of the civil penalty to be assessed under 
this section, the Secretary shall consider the gravity of the offense, the 
size of the business involved, and the effect of the penalty on the per-
son's ability to continue in business. If, after the lapse of the period 
allowed for appeal or after the affirmance of such penalty, the person 
against whom the civil penalty is assessed fails to pay such penalty, 
the Secretary may refer the matter to the Attorney General who may 
recover such penalty by an action in the appropriate district court of 
the United States.".^ 
(c) The Packers and Stockyards Act, 1921, as amended, is amended 7 USC 182, 183, 
by striking out the words "live stock" and "live-stock" wherever they 201, 207, 210, 
appear in the Act and substituting therefor "livestock". 
212, 213. 
SEC. 4. The proviso in the paragraph designated "Packers and 
Stockyards Act" under the heading " M A R K E T I N G S E R V I C E " in 
the Act of July 12, 1943 (57 Stat. 422; 7 U.S.C. 204), is further 
90 STAT. 1250 
PUBLIC LAW 94-410—SEPT. 13, 1976 
Notice and 
hearing. 
Temporary 
injunction or 
retraining order. 
7 u s e 229. 
7 u s e 228a. 
Violations. 
Livestock 
delivery. 
7 u s e 228b. 
amended by adding at the end thereof a new sentence as follows: "If 
Ihe Secretary finds any packer is insolvent, he maj^ after notice and 
hearing issue an order under the provisions of section 203 requiring 
such packer to cease and desist from purchasing livestock while insol-
vent, or while insolvent purchasing livestock except under such condi-
tions as the Secretary may prescribe to effectuate the purposes of the 
Act.". 
SEC. 5. The Packers and Stockyards Act, 1921, as amended, is further 
amended by redesignating section 408 as section 411 and l3y adding 
a new section 408 to read as follows: 
"SEC. 408. Whenever the Secretary has reason to believe that any 
person subject to this Act (a) with respect to any transactions subject 
to this Act, has failed to pay or is unable to pay for livestock, meats, 
meat food products, or livestock products in unmanufactured form, 
or has failed to remit to the person entitled thereto the net proceeds 
from the sale of any such commodity sold on a commission basis; or 
(b) has operated while insolvent, or otherwise in violation of this Act 
in a manner which may reasonably be expected to cause irreparable 
damage to another person; or (c) does not have the required bond; 
and that it would be in the public interest to enjoin such person from 
operating subject to this Act or enjoin him from operating subject to 
this Act except under such conditions as would protect vendors or 
consignors of such commodities or other affected persons, until a com-
plaint under this Act is issued and dismissed by the Secretary or until 
an order to cease and desist made thereon by the Secretary has become 
final and effective within the meaning of this Act or is set aside on 
appellate review of the Secretary's order, the Secretary may notify 
the Attorney General, who may apply to the United States district 
court for the district in which such person has his principal place of 
business or in which lie resides for a temporary injunction or restrain-
ing order. When needed to effectuate the purposes of this section, the 
court shall, upon a proper showing, issue a temporary injunction or 
restraining order, without bond. Attorneys employed by the Secretary 
of Agriculture may, with the approval of the Attorney General, 
appear in the United States district court representing the Secre-
tary in any action seeking such a temporary restraining order or 
injunction.". 
SEC. 6. Section 308(a) of the Packers and Stockyards Act, 1921, as 
amended (7 U.S.C. 209(a)) is amended to read as follows: 
"(a) If any person subject to this Act violates any of the provisions 
of this Act, or of any order of the Secretary under this Act, relating 
to the purchase, sale, or handling of livestock, he shall be liable to 
the person or persons injured thereby for the full amount of damages 
sustained in consequence of such violation.". 
SEC. 7. The Packers and Stockyards Act, 1921, as amended, is fur-
ther amended by adding aft«r section 408 (7 U.S.C. 229) a new section 
409 to read as follows: 
"SEC. 409. (a) Each packer, market agency, or dealer purchasing 
livestock shall, before the close of the next business day following 
the purchase of livestock and transfer of possession thereof, deliver 
to the seller or his duly authorized representative the full amount of 
the purchase price: Provided^ 
That each packer, market agency, or 
dealer purchasing livestock for slaughter shall, before the close of the 
next business day following purchase of livestock and transfer of 
PUBLIC LAW 94-410—SEPT. 13, 1976 
90 STAT. 1251 
possession thereof, actually deliver at the point of transfer of pos-
session to the seller or his duly authorized rej^resentative a check or 
shall wire transfer funds to the seller's account for the full amount 
of the purchase price; or, in the case of a purchase on a carcass or 
'grade and yield' basis, the purchaser shall make payment by check 
at the point of transfer of possession or shall wire transfer funds to 
the seller's account for the full amount of the purchase price not later 
than the close of the first business day following determination of the 
purchase price: Provided further^ That if the seller or his duly author-
ized representative is not present to receive payment at the point of 
transfer of possession, as herein provided, the packer, market agency 
or dealer shall wire transfer funds or place a check in the United 
States mail for the full amount of the purchase price, properly 
addressed to the seller, within the time limits specified in this sub-
section, such action being deemed compliance with the requirement 
for prompt payment. 
"(b) Notwithstanding the provisions of subsection (a) of this 
section and subject to such terms and conditions as the Secretary may 
prescribe, the parties to the purchase and sale of livestock may 
expressly agree in writing, before such purchase or sale, to effect 
payment in a manner other than that required in subsection (a). Any 
such agreement shall be disclosed in the records of any market agency 
or dealer selling the livestock, and in the purchaser's records and on 
the accounts or other documents issued by the purchaser relating to 
the transaction. 
"(c) Any delay or attempt to delay by a market agency, dealer, 
or packer purchasing livestock, the collection of funds as herein pro-
vided, or otherwise for the purpose of or resulting in extending the 
normal period of payment for such livestock shall be considered an 
'unfair practice' in violation of this Act. Nothing in this section shall 
be deemed to limit the meaning of the term 'unfair practice' as used 
in this Act.". 
SEC. 8. The Packers and Stockyards Act, 1921, as amended (7 
U.S.C. 181 et seq.), is further amended by adding after section 205 
(7 U.S.C. 195) a new section 206, to read as follows: 
"SEC. 206. (a) It is hereby found that a burden on and obstruction 
to commerce in livestock is caused by financing arrangements under 
which packers encumber, give lenders security interest in, or place 
liens on, livestock purchased by packers in cash sales, or on inventories 
of or receivables or proceeds from meat, meat food products, or live-
stock products therefrom, when payment is not made for the livestock 
and that such arrangements are contrary to the public interest. This 
section is intended to remedy such burden on and obstruction to 
commerce in livestock and protect the public interest. 
" (b) All livestock purchased by a packer in cash sales, and all inven-
tories of, or receivables or proceeds from meat, meat food products, or 
livestock products derived therefrom, shall be held by such packer in 
trust for the benefit of all unpaid cash sellers of such livestock until 
full payment has been received by such unpaid sellers: Provided^ That 
any packer whose average annual purchases do not exceed $500,000 
will be exempt from the provisions of this section. Payment shall not 
be considered to have been made if the seller receives a payment instru-
ment which is dishonored: Provided, That the unpaid seller shall lose 
the benefit of such trust if, in the event that a payment instrument has 
Written 
agreement. 
Disclosure. 
Unfair 
practice. 
Financing 
arrangements, 
remedy. 
7 use 196. 
90 STAT. 1252 
PUBLIC LAW 94-410—SEPT. 13, 1976 
State and local 
requirements. 
Federal 
preemption. 
7 u s e 228c. 
Savings 
provision. 
7 u s e 182 note. 
7 u s e 181 et seq. 
7 u s e 204. 
Budget estimates, 
testimony before 
congressional 
committees. 
7 u s e 228. 
Rules. 
not been received, within thirty days of the final date for making a 
payment under section 409, or within fifteen business days after the 
seller has received notice that the payment instrument promptly pre-
sented for payment has been dishonored, the seller has not preserved 
his trust under this subsection. The trust shall be preserved by giving 
written notice to the packer and by filing such notice with the Secre-
tary. 
(c) For the purpose of this section, a cash sale means a sale in 
which the seller does not expressly extend credit to the buyer.". 
SEC. 9. The Packers and Stockyards Act, 1921, as amended, is further 
amended by adding after new section 409 a new section 410 to read as 
follows: 
"SEC. 410. No requirement of any State or territory of the United 
States, or any subdivision thereof, or the District of Columbia, with 
respect to bonding of packers or prompt payment by packers for live-
stock purchases may be enforced upon any packer operating in com-
pliance with the bonding provisions under the Act of July 12, 1943 
(57 Stat. 422; 7 U.S.C. 204), and prompt payment provisions of sec-
tion 409 of this Act, respectively: Provided, That this section shall not 
preclude a State from enforcing a requirement, with respect to pay-
ment for livestock purchased by a packer at a stockyard subject to this 
Act, which is not in conflict with this Act or regulations thereunder: 
Provided further. That this section shall not preclude a State from 
enforcing State law or regulations with respect to any packer not 
subject to this Act or the Act of July 12, 1943.". 
SEC. 10. Pending proceedings shall not be abated by reason of any 
provision of this Act, but shall be disposed of pursuant to the pro-
visions of the Packers and Stockyards Act, 1921, as amended, and the 
Act of July 12, 1943, in effect immediately prior to the effective date 
of this Act. 
SEC. 11. Section 407 of the Packers and Stockyards Act, 1921, as 
amended, is amended by adding the following new subsections to read 
as follows: 
"(d) On or before February 15 of each calendar year beginning 
with calendar year 1977, or such other date as may be specified by the 
appropriate committee, the Secretary of Agriculture shall testify 
before the Senate Committee on Agriculture and Forestry and the 
House Committee on Agriculture and provide justification in detail 
of the amount requested in the budget to be appropriated for the next 
fiscal year for the purposes authorized in the Packers and Stockyards 
Act, 1921, as amended. 
" (e) The Secretary shall, not later than sixty days after the effective 
date of this subsection, prescribe and implement rules to assure that 
any hearing from which any order may issue under this Act or any 
hearing the expenses of which are paid from funds authorized to be 
appropriated under this Act shall— 
"(1) if such hearing concerns a single unit of local government 
or the residents thereof, be held within the boundaries of such 
unit; 
"(2) if such hearing concerns a single geographic area within 
a State or the residents thereof, be held within the boundaries of 
such area; or 
PUBLIC LAW 94-410—SEPT. 13, 1976 
90 STAT. 1253 
"(3) if such hearing concerns a single State or the residents 
thereof, be held within such State. 
"(f) For the purposes of subsection (e)— 
Definitions. 
"(1) the term 'unit of local government' means a county, 
municipality, town, township, village, or other unit of general 
government below the State level; and 
"(2) the term 'geographic area within a State' means a special 
purpose district or other region recognized for governmental pur-
poses within such State which is not a unit of local government.". 
Approved September 13, 1976. 
LEGISLATIVE HISTORY: 
HOUSE REPORTS: No. 94-1043 (Comm. on Agriculture) and No. 94-1391 (Comm. of 
Conference). 
SENATE REPORTS: No. 94-932 (Comm. on Agriculture and Forestry) and No. 
94-1065 (Comm. of Conference). 
CONGRESSIONAL RECORD, Vol. 122 (1976): 
May 6, considered and passed House. 
June 17, considered and passed Senate, amended. 
Aug. 4, Senate agreed to conference report. 
Aug. 30, House agreed to conference report. 
WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS, Vol. 12, No. 38: 
Sept. 13, Presidential statement.