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PAG LIN
1 1 Section 1. NEW SECTION. 172A.14 PRICE DISCRIMINATION &endash;
1 2 PROHIBITION
1 3 1. Except as provided in this section, a dealer or a
1 4 broker, or an agent purchasing livestock for slaughter shall
1 5 not discriminate in prices paid or offered to be paid to
1 6 sellers of that livestock.
1 7 2. This section shall not apply to a person exempted from
1 8 the license and financial responsibility provisions of this
1 9 chapter pursuant to section 172A.6. This section shall also
1 10 not apply, if all of the following requirements are met:
1 11 a. The price differential is based on one of the
1 12 following:
1 13 (1) The quality of the livestock, if the broker, dealer,
1 14 or agent purchases the livestock based upon a payment method
1 15 specifying prices paid for criteria relating to carcass merit.
1 16 (2) Actual and quantifiable costs related to transporting
1 17 and acquiring the livestock by the broker or dealer, or the
1 18 agent.
1 19 (3) An agreement for the delivery of livestock at a
1 20 specified date or time. The broker or dealer, or the agent
1 21 shall provide all sellers with the same terms and conditions.
1 22 b. Prior to making a differential payment to a seller, the
1 23 broker, dealer, or agent publishes information relating to the
1 24 differential pricing, including the payment method for carcass
1 25 merit, transportation and acquisition pricing, and an offer to
1 26 enter into an agreement for the delivery of livestock at a
1 27 specified date or time according to the same terms and
1 28 conditions offered to other sellers.
1 29 3. An agreement made by a broker or dealer, or an agent
1 30 with a seller in violation of this section is voidable.
1 31 4. A broker or dealer, or an agent acting in violation of
1 32 this section is guilty of a fraudulent practice as provided in
1 33 chapter 714.
1 34 5. The attorney general shall enforce this section. The
1 35 department shall refer any violations of this chapter to the
2 1 attorney general. The attorney general or any person injured
2 2 by a violation of this section may bring an action in district
2 3 court to restrain a dealer or broker, or an agent from
2 4 violating this section. A seller who receives a
2 5 discriminatory price or who is offered only a discriminatory
2 6 price for livestock based upon a violation of this section by
2 7 a broker or dealer, or an agent, has a civil cause of action
2 8 against the broker or dealer, or an agent, and, if successful,
2 9 shall be awarded treble damages.
2 10 EXPLANATION
2 11 This bill amends chapter 172A which in part regulates
2 12 persons, referred to as brokers or dealers, and their agents,
2 13 who are engaged in the business of slaughtering live animals
2 14 or receiving, buying, or soliciting live animals for
2 15 slaughter, the meat products of which are directly or
2 16 indirectly to be offered for resale or for public consumption.
2 17 This bill provides that a dealer or a broker, or an agent,
2 18 purchasing livestock for slaughter is prohibited from
2 19 discriminating in prices paid to sellers of the livestock.
2 20 The bill provides that this prohibition does not apply to
2 21 certain low-volume dealers. The bill also provides that the
2 22 prohibition does not apply to price differential based on
2 23 quality, transportation and acquisition costs, or the delivery
2 24 of livestock at a specified date or time. The bill provides
2 25 that prior to making a differential payment to a seller, the
2 26 broker or dealer, or the agent, must publish information
2 27 relating to the differential pricing. The bill provides that
2 28 an agreement made in violation of the provisions of the bill
2 29 is voidable and a broker or dealer, or an agent, acting in
2 30 violation is guilty of a fraudulent practice. The bill
2 31 provides that the attorney general shall enforce the bill's
2 32 provisions. A seller who receives a discriminatory price or
2 33 an offer of a discriminatory price for livestock based upon a
2 34 violation of the bill has a civil cause of action, and, if
2 35 successful, may be awarded treble damages.
3 1 LSB 3615XS 76
3 2 da/cf/24
Text: SF02104 Text: SF02106 Text: SF02100 - SF02199 Text: SF Index Bills and Amendments: General Index Bill History: General Index
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