House Journal: Page 1470: Tuesday, April 20, 1999

H-1685

 1     Amend Senate File 436, as amended, passed, and
 2   reprinted by the Senate, as follows:
 3     1.  Page 1, line 6, by striking the figure
 4   "172C.2" and inserting the following:  "172C.3".
 5     2.  Page 1, by inserting after line 20 the
 6   following:
 7     "Sec. ___. NEW SECTION.  172C.2  PRICE
 8   DISCRIMINATION - PROHIBITION.
 9     1.  Except as provided in subsection 2, a packer
10   purchasing or soliciting livestock or executing a
11   contract for the purchase of livestock shall not
12   discriminate in the price paid or offered to be paid
13   to sellers of that livestock.
14     2.  Subsection 1 shall not apply if all of the
15   following requirements are met:
16     a.  The price difference is based on criteria
17   established by rules adopted by the department in
18   consultation with the office of attorney general.  The
19   rules shall permit differential pricing based on any
20   of the following:
21     (1)  Carcass merit, including the quality of the
22   carcass and premium characteristics associated with
23   the livestock which may include its breed.
24     (2)  Actual and quantifiable costs related to
25   transporting and acquiring of the livestock by the
26   packer.
27     (3)  An agreement for the delivery of livestock at
28   a specified date or time.  The specified date or time
29   must occur during a period in which the supply of
30   livestock cannot meet existing slaughter capacity.
31     b.  After making a differential payment to a
32   seller, the packer publishes information relating to
33   the differential pricing as provided in paragraph "a",
34   and that the packer offers to purchase livestock or
35   execute a contract for the purchase of livestock
36   according to the same terms and conditions offered to
37   other sellers under a differential pricing
38   arrangement.
39     3.  A packer shall provide all sellers with the
40   same terms and conditions offered to a seller who
41   receives a differential price based on any of the
42   criteria described in subsection 2, paragraph "a".
43     4.  An agreement made by a packer in violation of
44   this section is voidable by the seller of the
45   livestock.
46     5.  A packer acting in violation of this section is
47   guilty of a fraudulent practice as provided in chapter
48   714.
49     6.  Any person injured by a violation of this
50   section may bring an action in district court to

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