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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
Text: SF00435 Text: SF00437 Text: SF00400 - SF00499 Text: SF Index Bills and Amendments: General Index Bill History: General Index
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