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Senate File 49

Partial Bill History

Bill Text

PAG LIN
  1  1    Section 1.  NEW SECTION.  172C.1  DEFINITIONS.
  1  2    1.  "Livestock" means live cattle, swine, or sheep.
  1  3    2.  "Packer" means a person who is engaged in the business
  1  4 of slaughtering livestock or receiving, purchasing, or
  1  5 soliciting livestock for slaughtering, the meat products of
  1  6 which are directly or indirectly to be offered for resale or
  1  7 for public consumption.  As used in this chapter, "packer"
  1  8 includes an agent of the packer engaged in buying or
  1  9 soliciting livestock for slaughter on behalf of a packer.
  1 10 "Packer" does not include any of the following:
  1 11    a.  A cold storage plant regulated under chapter 171.
  1 12    b.  A frozen food locker plant regulated under chapter 172.
  1 13    c.  A livestock market as defined in section 455B.161.
  1 14    Sec. 2.  NEW SECTION.  172C.2  PRICE DISCRIMINATION –
  1 15 PROHIBITION.
  1 16    1.  Except as provided in subsection 2, a packer purchasing
  1 17 or soliciting livestock for slaughter in this state shall not
  1 18 discriminate in prices paid or offered to be paid to sellers
  1 19 of that livestock.
  1 20    2.  This section shall not apply to any of the following:
  1 21    a.  A person exempted from the license and financial
  1 22 responsibility provisions of chapter 172A pursuant to section
  1 23 172A.6.
  1 24    b.  A person purchasing or soliciting cattle, including
  1 25 calves, for slaughter.
  1 26    c.  The sale and purchase of livestock if all of the
  1 27 following requirements are met:
  1 28    (1)  The price differential is based on one of the
  1 29 following:
  1 30    (a)  The quality of the livestock, if the packer purchases
  1 31 or solicits the livestock based upon a payment method
  1 32 specifying prices paid for criteria relating to carcass merit.
  1 33    (b)  Actual and quantifiable costs related to transporting
  1 34 and acquiring the livestock by the packer.
  1 35    (c)  An agreement for the delivery of livestock at a
  2  1 specified date or time.
  2  2    (2)  After making a differential payment to a seller, the
  2  3 packer publishes information relating to the differential
  2  4 pricing, including the payment method for carcass merit,
  2  5 transportation and acquisition pricing, and an offer to enter
  2  6 into an agreement for the delivery of livestock at a specified
  2  7 date or time according to the same terms and conditions
  2  8 offered to other sellers.
  2  9    3.  A packer shall provide all sellers with the same terms
  2 10 and conditions offered to a seller who receives a differential
  2 11 price based on any of the criteria described in subsection 2,
  2 12 paragraph "c", subparagraph (1).
  2 13    4.  The packer shall, at the beginning of each day in which
  2 14 livestock are purchased, post in a conspicuous place at the
  2 15 point of delivery, all prices for livestock to be paid that
  2 16 day.
  2 17    5.  An agreement made by a packer in violation of this
  2 18 section is voidable.
  2 19    6.  A packer acting in violation of this section is guilty
  2 20 of a fraudulent practice as provided in chapter 714.
  2 21    7.  The attorney general shall enforce this section.  The
  2 22 department shall refer any violations of this chapter to the
  2 23 attorney general.  The attorney general or any person injured
  2 24 by a violation of this section may bring an action in district
  2 25 court to restrain a packer from violating this section.  A
  2 26 seller who receives a discriminatory price or who is offered
  2 27 only a discriminatory price for livestock based upon a
  2 28 violation of this section by a packer, has a civil cause of
  2 29 action against the packer and, if successful, shall be awarded
  2 30 treble damages.
  2 31    Sec. 3.  NEW SECTION.  172C.3  REPORTING REQUIREMENTS.
  2 32    1.  A packer shall make available for publication and to a
  2 33 board of trade approved by the secretary of state, a daily
  2 34 report setting forth information regarding prices paid for
  2 35 livestock, under each contract in force, in which the packer
  3  1 and an Iowa resident are parties for the purchase of the
  3  2 livestock by the packer, and which sets a date for delivery
  3  3 more than twenty days after the making of the contract.
  3  4    2.  The reports shall be completed on forms prepared by the
  3  5 secretary of state for comparison with cash market prices for
  3  6 livestock according to procedures required by the secretary of
  3  7 state.  However, a report shall not include information
  3  8 regarding the identity of a seller.
  3  9    3.  The failure of a packer to report as required by this
  3 10 section is punishable by a civil penalty not to exceed one
  3 11 thousand dollars for each day that a timely or truthful report
  3 12 is not published.  The secretary of state shall refer to the
  3 13 attorney general any packer or packer's agent who the
  3 14 secretary of state believes is in violation of this section.
  3 15 The attorney general may, upon referral from the secretary of
  3 16 state, file an action in district court to enforce this
  3 17 section.  
  3 18                           EXPLANATION
  3 19    This bill creates a new chapter 172C which regulates meat
  3 20 packers.  A "packer" is a person who is engaged in the
  3 21 business of slaughtering livestock or receiving, purchasing,
  3 22 or soliciting livestock for slaughter.  The definition
  3 23 includes a packer's agent, but does not include a cold storage
  3 24 plant, a frozen food locker plant, or a livestock market.
  3 25    This bill prohibits price discrimination in the purchase of
  3 26 livestock by a packer.  This prohibition does not apply in
  3 27 several cases, including to a person exempted from the license
  3 28 and financial responsibility provisions of chapter 172A
  3 29 regulating livestock brokers and dealers.  The bill's
  3 30 prohibition does not apply to a person purchasing cattle for
  3 31 slaughter.  The prohibition also does not apply if first, the
  3 32 price differential is based on the quality of the livestock,
  3 33 transportation costs, or the delivery of livestock at a
  3 34 specified date or time, and second, information relating to
  3 35 the price differential is published.  The packer must offer to
  4  1 enter into an agreement with other sellers for the delivery of
  4  2 livestock according to the same terms and conditions as
  4  3 provided in the published notice.  In addition, the packer
  4  4 must, at the beginning of each day in which livestock are
  4  5 purchased, post in a conspicuous place at the point of
  4  6 delivery, all prices for livestock to be paid that day.  The
  4  7 bill provides that an agreement made in violation of the
  4  8 bill's requirements is voidable.  The packer violating the
  4  9 provision is guilty of a fraudulent practice.  The bill
  4 10 provides that the attorney general is responsible for
  4 11 enforcing the provision.  The bill provides that the attorney
  4 12 general or an injured seller may seek injunctive relief.  The
  4 13 injured seller may be awarded treble damages in a court
  4 14 action.
  4 15    The bill also provides that a packer must make available
  4 16 for publication, and to a board of trade, a daily report
  4 17 containing prices paid for livestock under each contract in
  4 18 force in which the packer and an Iowa resident are parties, if
  4 19 delivery under the contract is set more than 20 days after the
  4 20 contract is executed.  The failure to make a timely report is
  4 21 punishable by a civil penalty not to exceed $1,000 for each
  4 22 day that a timely or truthful report is not published.  The
  4 23 attorney general is also charged to enforce this part of the
  4 24 bill's requirements.  
  4 25 LSB 1353XS 77
  4 26 da/cf/24.1
     

Text: SF00048                           Text: SF00050
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