Text: HF00719 Text: HF00721 Text: HF00700 - HF00799 Text: HF Index Bills and Amendments: General Index Bill History: General Index
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 slaughter, if the meat products of 1 6 the slaughtered livestock which are directly or indirectly to 1 7 be offered for resale or for public consumption and the meat 1 8 products have a total annual value of ten million dollars or 1 9 more. As used in this chapter, "packer" includes an agent of 1 10 the packer engaged in buying or soliciting livestock for 1 11 slaughter on behalf of a packer. "Packer" does not include a 1 12 frozen food locker plant regulated under chapter 172. 1 13 Sec. 2. NEW SECTION. 172C.2 PRICE DISCRIMINATION 1 14 PROHIBITION. 1 15 1. Except as provided in subsection 2, a packer purchasing 1 16 or soliciting livestock for slaughter in this state shall not 1 17 discriminate in prices paid or offered to be paid to sellers 1 18 of that livestock. 1 19 2. The section shall not apply to the sale and purchase of 1 20 livestock if all of the following requirements are met: 1 21 a. The price differential is based on one of the 1 22 following: 1 23 (1) The quality of the livestock, if the packer purchases 1 24 or solicits the livestock based upon a payment method 1 25 specifying prices paid for criteria relating to carcass merit. 1 26 (2) Actual and quantifiable costs related to transporting 1 27 and acquiring the livestock by the packer. 1 28 (3) An agreement for the delivery of livestock at a 1 29 specified date or time. 1 30 b. After making a differential payment to a seller, the 1 31 packer publishes information relating to the differential 1 32 pricing, including the payment method for carcass merit, 1 33 transportation and acquisition pricing, and an offer to enter 1 34 into an agreement for the delivery of livestock at a specified 1 35 date or time according to the same terms and conditions 2 1 offered to other sellers. 2 2 3. A packer shall provide all sellers with the same terms 2 3 and conditions offered to a seller who receives a differential 2 4 price based on any of the criteria described in subsection 2, 2 5 paragraph "a". 2 6 4. A packer who purchases livestock or executes a contract 2 7 for the purchase of livestock shall notify sellers of prices 2 8 paid for the livestock or under contracts. If the livestock 2 9 are purchased, the packer shall at the beginning of each day 2 10 in which livestock are purchased post, in a conspicuous place 2 11 at the point of delivery, all prices for livestock paid the 2 12 previous day that livestock were purchased. If the packer 2 13 executes a contract for the purchase of the livestock, the 2 14 packer shall notify the seller in writing of prices offered to 2 15 sellers under similar contracts executed the previous day that 2 16 contracts were executed. 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 at the end of each day during which the 2 33 packer purchases livestock or executes a contract for the 2 34 purchase of livestock, submit a report to the department of 2 35 agriculture and land stewardship setting forth information 3 1 regarding prices paid for livestock purchased or under 3 2 contract. The packer shall submit the report to the market 3 3 news service of the United State department of agriculture to 3 4 the extent that the United States department of agriculture 3 5 provides for the reporting. 3 6 2. The reports shall be completed on forms prepared by the 3 7 department of agriculture and land stewardship for comparison 3 8 with cash market prices for livestock according to procedures 3 9 required by the department. However, a report shall not 3 10 include information regarding the identity of a seller. 3 11 3. The failure of a packer to report as required by this 3 12 section is punishable by a civil penalty not to exceed one 3 13 thousand dollars for each day that a timely or accurate report 3 14 is not published. The department shall refer to the attorney 3 15 general any packer or packer's agent who the department 3 16 believes is in violation of this section. The attorney 3 17 general may, upon referral from the department, file an action 3 18 in district court to enforce this section. 3 19 EXPLANATION 3 20 This bill creates new Code chapter 172C which regulates 3 21 meat packers. A "packer" is a person who is engaged in the 3 22 business of slaughtering livestock or receiving, purchasing, 3 23 or soliciting livestock for slaughter. The definition 3 24 includes a packer's agent, but does not include a frozen food 3 25 locker plant. 3 26 This bill prohibits price discrimination in the purchase of 3 27 livestock by a packer. The prohibition does not apply if 3 28 first, the price differential is based on the quality of the 3 29 livestock, transportation costs, or the delivery of livestock 3 30 at a specified date or time, and second, information relating 3 31 to the price differential is published. The packer must offer 3 32 to enter into an agreement with other sellers for the delivery 3 33 of livestock according to the same terms and conditions as 3 34 provided in the published notice. In addition, the packer 3 35 must, at the beginning of each day in which livestock are 4 1 purchased, post in a conspicuous place at the point of 4 2 delivery, all prices for livestock paid the previous day. The 4 3 packer must also notify a seller in writing of prices offered 4 4 for sellers in contracts. The bill provides that an agreement 4 5 made in violation of the bill's requirements is voidable. The 4 6 packer violating the provision is guilty of a fraudulent 4 7 practice. The bill provides that the attorney general is 4 8 responsible for enforcing the provision. The bill provides 4 9 that the attorney general or an injured seller may seek 4 10 injunctive relief. The injured seller may be awarded treble 4 11 damages in a court action. 4 12 The bill also provides that a packer must make available to 4 13 the department of agriculture and land stewardship a daily 4 14 report containing prices paid for livestock under contract. 4 15 The packer must submit the report to the market news service 4 16 of the United States department of agriculture to the extent 4 17 that the United States department of agriculture provides for 4 18 the reporting. The failure to make a timely report is 4 19 punishable by a civil penalty not to exceed $1,000 for each 4 20 day that a timely or truthful report is not published. The 4 21 attorney general is also charged to enforce this part of the 4 22 bill's requirements. 4 23 LSB 1669HV 78 4 24 da/cf/24
Text: HF00719 Text: HF00721 Text: HF00700 - HF00799 Text: HF Index Bills and Amendments: General Index Bill History: General Index
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