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Senate File 15

Partial Bill History

Bill Text

PAG LIN
  1  1    Section 1.  NEW SECTION.  202A.4A  PRICE DISCRIMINATION –
  1  2 PROHIBITION.
  1  3    1.  Except as provided in subsection 2, a packer receiving,
  1  4 purchasing, or soliciting livestock for slaughter in this
  1  5 state shall not discriminate in prices paid or offered to be
  1  6 paid to sellers of that livestock.
  1  7    2.  This section shall not apply to the purchase of
  1  8 livestock by a packer if all of the following requirements are
  1  9 met:
  1 10    a.  The price differential is based on one of the
  1 11 following:
  1 12    (1)  The quality of the livestock, if the packer purchases
  1 13 or solicits the livestock based upon a payment method
  1 14 specifying prices paid for criteria relating to carcass merit.
  1 15    (2)  Actual and quantifiable costs related to transporting
  1 16 and acquiring the livestock by the packer.
  1 17    (3)  An agreement for the delivery of livestock at a
  1 18 specified date or time.
  1 19    b.  The packer provides all sellers with the same terms and
  1 20 conditions offered to a seller who receives the differential
  1 21 price based on any of the criteria described in paragraph "a".
  1 22 The packer is not required to provide sellers with the same
  1 23 terms and conditions after the close of business day on which
  1 24 the packer provided the differential price.  The packer shall
  1 25 post a notice in a conspicuous place informing sellers of the
  1 26 terms and conditions offered to a seller who receives a
  1 27 differential price.
  1 28    Sec. 2.  NEW SECTION.  202A.4B  PRIVATE ACTIONS.
  1 29    1.  If a seller receives a discriminatory price or is
  1 30 offered only a discriminatory price for livestock based upon a
  1 31 violation of section 202A.4A by a packer, the seller has a
  1 32 civil cause of action against the packer and, if successful,
  1 33 shall be awarded treble damages.
  1 34    2.  Any seller may apply to the district court for an
  1 35 injunction to do any of the following:
  2  1    a.  Restrain a packer from engaging in conduct or practices
  2  2 in violation of section 202A.4A.
  2  3    b.  Require a packer to comply with a provision of section
  2  4 202A.4A.
  2  5    3.  A seller may void any agreement made by a packer in
  2  6 violation of section 202A.4A.
  2  7    Sec. 3.  Section 202A.6, subsection 1, Code 2001, is
  2  8 amended by adding the following new paragraph:
  2  9    NEW PARAGRAPH.  c.  The department shall notify the
  2 10 attorney general's office if the department has reason to
  2 11 believe that a violation of section 202A.4A has occurred.
  2 12    Sec. 4.  Section 202A.7, Code 2001, is amended by adding
  2 13 the following new subsection:
  2 14    NEW SUBSECTION.  4.  A packer acting in violation of
  2 15 section 202A.4A is guilty of a fraudulent practice as provided
  2 16 in section 714.8.  
  2 17                           EXPLANATION
  2 18    This bill amends Code chapter 202A, which regulates
  2 19 livestock marketing practices by meat packers.  A packer is
  2 20 defined as a person who is engaged in the business of
  2 21 slaughtering livestock or receiving, purchasing, or soliciting
  2 22 livestock for slaughter.  The definition includes a packer's
  2 23 agent.
  2 24    The bill prohibits price discrimination in the purchase of
  2 25 livestock by a packer.  The prohibition does not apply if,
  2 26 first, the price differential is based on the quality of the
  2 27 livestock, transportation costs, or the delivery of livestock
  2 28 at a specified date or time, and second, the packer provides
  2 29 all sellers with the same terms and conditions offered to the
  2 30 seller who receives the differential price.  The bill provides
  2 31 that an agreement made in violation of the bill's requirements
  2 32 is voidable.  A packer violating the provision is guilty of a
  2 33 fraudulent practice.  Code chapter 199 provides that the
  2 34 attorney general is responsible for enforcing the provisions
  2 35 of that chapter.  The bill provides that an injured seller may
  3  1 seek injunctive relief.  The injured seller may be awarded
  3  2 treble damages in a court action.  
  3  3 LSB 1439SS 79
  3  4 da/cls/14.1
     

Text: SF00014                           Text: SF00016
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