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Senate File 436

Partial Bill History

Bill Text

PAG LIN
  1  1                                           SENATE FILE 436 
  1  2 
  1  3                             AN ACT
  1  4 RELATING TO PRACTICES INVOLVING THE MARKETING OF LIVESTOCK
  1  5    CONCERNING PACKERS, BY PROVIDING FOR THE REGULATION OF CERTAIN
  1  6    PURCHASE INFORMATION AND CONTRACTING, AND PROVIDING PENALTIES
  1  7    AND EFFECTIVE DATES.  
  1  8 
  1  9 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
  1 10 
  1 11    Section 1.  Section 22.7, Code 1999, is amended by adding
  1 12 the following new subsection:
  1 13    NEW SUBSECTION.  38.  Information revealing the identity of
  1 14 a packer or a person who sells livestock to a packer as
  1 15 reported to the department of agriculture and land stewardship
  1 16 pursuant to section 172C.2.
  1 17    Sec. 2.  NEW SECTION.  172C.1  DEFINITIONS.
  1 18    1.  "Department" means the department of agriculture and
  1 19 land stewardship.
  1 20    2.  "Livestock" means live cattle, swine, or sheep.
  1 21    3.  "Packer" means a person who is engaged in the business
  1 22 of slaughtering livestock or receiving, purchasing, or
  1 23 soliciting livestock for slaughter, if the meat products of
  1 24 the slaughtered livestock which are directly or indirectly to
  1 25 be offered for resale or for public consumption and the meat
  1 26 products have a total annual value of ten million dollars or
  1 27 more.  As used in this chapter, "packer" includes an agent of
  1 28 the packer engaged in buying or soliciting livestock for
  1 29 slaughter on behalf of a packer.  "Packer" does not include a
  1 30 frozen food locker plant regulated under chapter 172.
  1 31    Sec. 3.  NEW SECTION.  172C.2  PURCHASE REPORTS – FILING.
  1 32    1.  A packer shall file purchase reports with the
  1 33 department which include information relating to the purchase
  1 34 of livestock as required by the department.  The purchase
  1 35 reports shall be completed in a manner prescribed by the
  2  1 department.  The department may require that purchase reports
  2  2 be filed in an electronic format.  A packer shall file
  2  3 purchase reports at times determined practicable by the
  2  4 department, but not later than two business days following the
  2  5 event being reported.
  2  6    2.  a.  The information required to be reported may include
  2  7 but is not limited to livestock purchased, committed for
  2  8 delivery, or slaughtered.  The information may include the
  2  9 volume of daily purchases and the weight, grade, and price
  2 10 paid for livestock, including all premiums, discounts, or
  2 11 adjustments.  If livestock is purchased pursuant to contract,
  2 12 the department may require that information in the purchase
  2 13 report be categorized by the type of contract.  The purchase
  2 14 reports shall allow the department to compare prices paid
  2 15 under contract with cash market prices.
  2 16    b.  This section does not require that information reported
  2 17 include future plans, events, or transactions, unless provided
  2 18 for by contract.
  2 19    3.  The department may provide for the public dissemination
  2 20 of information contained in purchase reports.
  2 21    a.  The department may enter into an agreement with the
  2 22 United States department of agriculture or any private
  2 23 marketing service in order to disseminate information
  2 24 contained in purchase reports.
  2 25    b.  The department, in consultation with the office of
  2 26 attorney general, shall designate information in purchase
  2 27 reports that reveals the identity of a packer or livestock
  2 28 seller as confidential pursuant to section 22.7.
  2 29    Sec. 4.  NEW SECTION.  172C.3  PURCHASE NOTICE – POSTING.
  2 30    1.  a.  A packer shall post a purchase notice which
  2 31 includes information relating to the purchase of livestock as
  2 32 required by the department.  The information contained in the
  2 33 purchase notice shall include a summary of information
  2 34 required to be filed in purchase reports as provided in
  2 35 section 172C.2.
  3  1    b.  This section does not require that information
  3  2 contained in a purchase notice include future plans, events,
  3  3 or transactions unless provided for by contract.
  3  4    2.  The information contained in the purchase notice shall
  3  5 appear in a format that can be understood by a reasonable
  3  6 person familiar with selling livestock.  The notice shall be
  3  7 posted in a conspicuous place at the point of delivery in a
  3  8 manner prescribed by the department.
  3  9    Sec. 5.  NEW SECTION.  172C.4  CONFIDENTIALITY PROVISIONS
  3 10 IN CONTRACTS PROHIBITED.
  3 11    1.  A packer shall not include a provision in a contract
  3 12 executed on or after the effective date of this section for
  3 13 the purchase of livestock providing that information contained
  3 14 in the contract is confidential.
  3 15    2.  A provision which is part of a contract for the
  3 16 purchase of livestock executed on and after the effective date
  3 17 of this section for the purchase of livestock is void, if the
  3 18 provision states that information contained in the contract is
  3 19 confidential.  The provision is void regardless of whether the
  3 20 confidentiality provision is express or implied; oral or
  3 21 written; required or conditional; contained in the contract,
  3 22 another contract, or in a related document, policy, or
  3 23 agreement.  This section does not affect other provisions of a
  3 24 contract or a related document, policy, or agreement which can
  3 25 be given effect without the voided provision.  This section
  3 26 does not require either party to the contract to divulge the
  3 27 information in the contract to another person.
  3 28    Sec. 6.  NEW SECTION.  172C.5  RULES.
  3 29    1.  The department, in consultation with the office of
  3 30 attorney general, shall adopt rules necessary in order to
  3 31 administer this chapter.
  3 32    2.  The department may establish different rules according
  3 33 to the species of livestock governing all of the following:
  3 34    a.  Purchase reporting requirements pursuant to section
  3 35 172C.2.
  4  1    b.  Purchase notice posting requirements pursuant to
  4  2 section 172C.3.
  4  3    Sec. 7.  NEW SECTION.  172C.6  ENFORCEMENT.
  4  4    1.  a.  The attorney general's office is the primary agency
  4  5 responsible for enforcing this chapter.
  4  6    b.  The department shall notify the attorney general's
  4  7 office if the department has reason to believe that a
  4  8 violation of section 172C.2 has occurred.
  4  9    2.  In enforcing the provisions of this chapter, the
  4 10 attorney general may do all of the following:
  4 11    a.  Apply to the district court for an injunction to do any
  4 12 of the following:
  4 13    (1)  Restrain a packer from engaging in conduct or
  4 14 practices in violation of this chapter.
  4 15    (2)  Require a packer to comply with a provision of this
  4 16 chapter.
  4 17    b.  Apply to district court for the issuance of a subpoena
  4 18 to obtain contracts, documents, or other records for purposes
  4 19 of enforcing this chapter.
  4 20    c.  Bring an action in district court to enforce penalties
  4 21 provided in this chapter, including the imposition,
  4 22 assessment, and collection of monetary penalties.
  4 23    3.  The attorney general shall have access to all
  4 24 information reported by packers pursuant to section 172C.2,
  4 25 regardless of whether the information is confidential.  The
  4 26 attorney general may use the information in order to enforce
  4 27 this chapter or may submit the information to a federal
  4 28 agency.
  4 29    Sec. 8.  NEW SECTION.  172C.7  PENALTIES.
  4 30    1.  A packer who fails to file a timely, accurate, or
  4 31 complete purchase report as required pursuant to section
  4 32 172C.2 is subject to a civil penalty of not more than five
  4 33 thousand dollars.  Each failure by a packer to file a timely,
  4 34 accurate, or complete purchase report constitutes a separate
  4 35 violation.
  5  1    2.  A packer who fails to post a timely, accurate, or
  5  2 complete purchase notice as required pursuant to section
  5  3 172C.3 is subject to a civil penalty of not more than one
  5  4 thousand dollars.  Each failure by a packer to post a timely,
  5  5 accurate, or complete purchase notice constitutes a separate
  5  6 violation.
  5  7    3.  A packer who includes a confidentiality provision in a
  5  8 contract with a livestock seller in violation of section
  5  9 172C.4 is guilty of a fraudulent practice as provided in
  5 10 section 714.8.
  5 11    Sec. 9.  Section 714.8, Code 1999, is amended by adding the
  5 12 following new subsection:
  5 13    NEW SUBSECTION.  17.  A packer who includes a
  5 14 confidentiality provision in a contract with a livestock
  5 15 seller in violation of section 172C.4.
  5 16    Sec. 10.  APPLICABILITY.  A packer shall provide purchase
  5 17 reports to the department of agriculture and land stewardship
  5 18 as required in section 172C.2 and shall post a purchase notice
  5 19 as provided in section 172C.3, as enacted in this Act, for
  5 20 each species of livestock as defined in section 172C.1, as
  5 21 enacted in this Act, in accordance with rules adopted by the
  5 22 department governing that species.
  5 23    Sec. 11.  FUTURE REPEAL OF SECTIONS AND ELIMINATION OF
  5 24 PROVISIONS – IMPLEMENTATION OF FEDERAL STATUTES AND
  5 25 REGULATIONS.
  5 26    1.  Subject to subsection 2, all of the following shall
  5 27 apply:
  5 28    a.  If the federal government implements a statute or
  5 29 regulation that is substantially similar to or more stringent
  5 30 than purchase reporting requirements provided in section
  5 31 172C.2 and penalties provided in section 172C.7, subsection 1,
  5 32 as enacted by this Act, all of the following shall apply:
  5 33    (1)  Section 172C.2 is repealed.
  5 34    (2)  All of the following sections are amended as follows:
  5 35    (a)  Section 22.7, subsection 38, by striking the
  6  1 subsection.
  6  2    (b)  Section 172C.5, subsection 2, paragraph "a", by
  6  3 striking the paragraph.
  6  4    (c)  Section 172C.6, subsection 1, paragraph "b", by
  6  5 striking the paragraph.
  6  6    (d)  Section 172C.6, subsection 3, by striking the
  6  7 subsection.
  6  8    (e)  Section 172C.7, subsection 1, by striking the
  6  9 subsection.
  6 10    b.  If the federal government implements a statute or
  6 11 regulation that is substantially similar to or more stringent
  6 12 than purchase notice requirements provided in section 172C.3
  6 13 and penalties provided in section 172C.7, subsection 2, as
  6 14 enacted by this Act, all of the following shall apply:
  6 15    (1)  Section 172C.3 is repealed.
  6 16    (2)  All of the following sections are amended as follows:
  6 17    (a)  Section 172C.5, subsection 2, paragraph "b", by
  6 18 striking the paragraph.
  6 19    (b)  Section 172C.7, subsection 2, by striking the
  6 20 subsection.
  6 21    c.  If the federal government implements a statute or
  6 22 regulation that is substantially similar to or more stringent
  6 23 than purchase reporting requirements and penalties as
  6 24 described in paragraph "a" and purchase notice requirements
  6 25 and penalties as described in paragraph "b", section 172C.5,
  6 26 subsection 2, is amended by striking the subsection.
  6 27    2.  Paragraph "a", "b", or "c", as provided in subsection
  6 28 1, shall become applicable only upon a finding by the
  6 29 secretary of agriculture that the federal government has
  6 30 implemented a statute or regulation as provided in that
  6 31 specific paragraph in accordance with an order issued by the
  6 32 secretary of agriculture and filed with the secretary of
  6 33 state.  The secretary of agriculture shall issue an order only
  6 34 after consulting with the attorney general.
  6 35    3.  The secretary of agriculture shall forward a copy of an
  7  1 order issued under this section to all of the following:
  7  2    a.  The governor.
  7  3    b.  The secretary of the senate and the chief clerk of the
  7  4 house of representatives.
  7  5    c.  The attorney general.
  7  6    d.  The Code editor and the administrative code editor.
  7  7    4.  The Code editor may recommend that any provision of
  7  8 chapter 172C, as enacted in this Act, be amended or eliminated
  7  9 in a Code editor's bill as necessary in order to conform the
  7 10 provisions of the chapter as provided in this section.
  7 11    Sec. 12.  RULEMAKING.  The department of agriculture and
  7 12 land stewardship shall commence rulemaking as required in
  7 13 section 172C.5, as enacted in this Act, as soon as practicable
  7 14 upon the enactment of this Act.  However, rules adopted by the
  7 15 department shall not be made effective prior to July 1, 2000,
  7 16 for a provision of this Act that takes effect on that date.
  7 17    Sec. 13.  EFFECTIVE DATES.
  7 18    1.  Except as provided in subsection 2, this Act takes
  7 19 effect on July 1, 2000.
  7 20    2.  Section 172C.4, section 172C.6, subsection 2, section
  7 21 172C.7, subsection 3, section 714.8, subsection 17, section
  7 22 12, and this section as enacted by this Act, being deemed of
  7 23 immediate importance, take effect upon enactment.  
  7 24 
  7 25 
  7 26                                                             
  7 27                               MARY E. KRAMER
  7 28                               President of the Senate
  7 29 
  7 30 
  7 31                                                             
  7 32                               RON J. CORBETT
  7 33                               Speaker of the House
  7 34 
  7 35    I hereby certify that this bill originated in the Senate and
  8  1 is known as Senate File 436, Seventy-eighth General Assembly.
  8  2 
  8  3 
  8  4                                                             
  8  5                               MICHAEL E. MARSHALL
  8  6                               Secretary of the Senate
  8  7 Approved                , 1999
  8  8 
  8  9 
  8 10                               
  8 11 THOMAS J. VILSACK
  8 12 Governor
     

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