Text: S.4647 — 116th Congress (2019-2020)All Information (Except Text)

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Introduced in Senate (09/22/2020)

 
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[S. 4647 Introduced in Senate (IS)]

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116th CONGRESS
  2d Session
                                S. 4647

 To amend the Packers and Stockyards Act, 1921, to establish a cattle 
               contract library, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                           September 22, 2020

 Mrs. Fischer introduced the following bill; which was read twice and 
   referred to the Committee on Agriculture, Nutrition, and Forestry

_______________________________________________________________________

                                 A BILL


 
 To amend the Packers and Stockyards Act, 1921, to establish a cattle 
               contract library, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Cattle Market Transparency Act of 
2020''.

SEC. 2. CATTLE CONTRACT LIBRARY.

    Title II of the Packers and Stockyards Act, 1921, is amended by 
inserting after section 223 (7 U.S.C. 198b) the following:

                     ``Subtitle C--Cattle Contracts

``SEC. 231. DEFINITIONS.

    ``In this subtitle:
            ``(1) Base price.--The term `base price' means the price 
        paid for cattle delivered to a packer, before application of 
        any premiums or discounts, expressed in dollars per hundred 
        pounds of carcass weight.
            ``(2) Contract.--
                    ``(A) In general.--Subject to subparagraph (B), the 
                term `contract' means any agreement, written or oral, 
                between a packer and a producer for the purchase of fed 
                cattle for slaughter.
                    ``(B) Exclusion.--The term `contract' does not 
                include a contract for a negotiated purchase.
            ``(3) Fed cattle.--The term `fed cattle' means a steer or 
        heifer that has been finished on a ration of roughage and feed 
        concentrates, such as grains, protein meal, grass (forage), and 
        other nutrient-rich feeds, prior to slaughter.
            ``(4) Formula marketing arrangement.--The term `formula 
        marketing arrangement' means the advance commitment of cattle 
        for slaughter--
                    ``(A) by any means other than through a negotiated 
                purchase, negotiated grid purchase, or forward 
                contract; and
                    ``(B) using a method for calculating price--
                            ``(i) under which the price is determined 
                        at a future date;
                            ``(ii) the basis of which is a price 
                        established for a specified market, which may 
                        be based on any publicly reported price, 
                        including plant average price, regional price, 
                        downstream price, or some other mutually 
                        agreeable price source; and
                            ``(iii) that may include a grid or nongrid 
                        price.
            ``(5) Forward contract.--The term `forward contract' 
        means--
                    ``(A) an agreement for the purchase of fed cattle, 
                executed in advance of slaughter, under which the base 
                price is established by reference to--
                            ``(i) prices quoted on the Chicago 
                        Mercantile Exchange; or
                            ``(ii) other comparable publicly available 
                        prices; or
                    ``(B) any other contract for the purchase of fed 
                cattle, executed in advance of slaughter, as determined 
                by the Secretary.
            ``(6) Heifer.--The term `heifer' means a bovine female that 
        has not given birth to a calf.
            ``(7) Negotiated grid purchase.--The term `negotiated grid 
        purchase' means a purchase of fed cattle by a packer from a 
        producer under which--
                    ``(A) the buyer-seller interaction results in a 
                negotiated base price, which may be adjusted by 
                premiums and discounts; and
                    ``(B) the cattle are scheduled for delivery to the 
                packer not more than 14 days after the date on which 
                the agreement for purchase is made.
            ``(8) Negotiated purchase.--The term `negotiated purchase' 
        means a purchase of fed cattle (commonly known as a `cash' or 
        `spot market' purchase) by a packer from a producer under 
        which--
                    ``(A) the buyer-seller interaction that results in 
                the purchase and the agreement on the actual base price 
                for the purchase occur on the same day; and
                    ``(B) the cattle are scheduled for delivery to the 
                packer not more than 30 days after the date on which 
                the agreement for purchase is made.
            ``(9) Packer.--The term `packer', with respect to a 
        contract, means a packer that slaughters cattle at 1 or more 
        federally inspected processing plants, each of which--
                    ``(A) slaughters an average of not less than 
                125,000 head of cattle per year during the 5 calendar 
                years immediately preceding the date on which the 
                contract is executed; or
                    ``(B) has not slaughtered cattle during those 
                immediately preceding 5 calendar years but has the 
                capacity to slaughter not less than 125,000 head of 
                cattle per year, as determined by the Secretary.
            ``(10) Producer.--The term `producer' means a person 
        engaged, directly or through an intermediary, in the business 
        of selling cattle to a packer for slaughter.
            ``(11) Steer.--The term `steer' means a bovine male 
        castrated before reaching sexual maturity.
            ``(12) Type of contract.--
                    ``(A) In general.--The term `type of contract' 
                means the classification of a contract for the purchase 
                of cattle--
                            ``(i) into 1 of the categories described in 
                        subparagraph (B); and
                            ``(ii) by determining the base price of the 
                        cattle.
                    ``(B) Categories.--The categories for 
                classification of a type of contract are the following:
                            ``(i) Formula marketing arrangement.
                            ``(ii) Forward contract.
                            ``(iii) Negotiated grid purchase contract.

``SEC. 232. CATTLE CONTRACT LIBRARY.

    ``(a) In General.--Subject to the availability of appropriations to 
carry out this section, the Secretary shall establish and maintain a 
library or catalog of each type of contract offered by packers to 
producers for the purchase of all or part of the production of the 
producers of fed cattle (including cattle that are purchased or 
committed for delivery), including any schedules of premiums or 
discounts associated with the contract.
    ``(b) Information Collection.--
            ``(1) In general.--To maintain the library or catalog 
        established under subsection (a), the Secretary shall obtain 
        information from each packer on each type of existing contract 
        of the packer by requiring a filing or other form of 
        information submission from each packer.
            ``(2) Contracted cattle numbers.--Information that shall be 
        submitted to the Secretary by a packer under paragraph (1) 
        shall include, with respect to each existing contract of a 
        packer--
                    ``(A) the type of contract; and
                    ``(B) a description of the provisions in the 
                contract that provide for expansion in the numbers of 
                fed cattle to be delivered under the contract for the 
                6-month and 12-month periods following the date of the 
                contract.
    ``(c) Availability of Information.--
            ``(1) In general.--The Secretary shall make available to 
        producers and other interested persons information on the types 
        of contracts in the library or catalog established under 
        subsection (a), including notice (on a real-time basis, if 
        practicable) of the types of contracts that are being offered 
        by packers to, and are open to acceptance by, producers for the 
        purchase of fed cattle.
            ``(2) Monthly report.--
                    ``(A) In general.--Beginning 30 days after the 
                library or catalog is established under subsection (a), 
                the Secretary shall make the information obtained each 
                month in the library or catalog available in a monthly 
                report to producers and other interested persons.
                    ``(B) Contents.--The monthly report described in 
                subparagraph (A) shall include--
                            ``(i) an estimate by the Secretary of the 
                        total number of fed cattle committed under 
                        contracts for delivery to packers within the 6-
                        month and 12-month periods following the date 
                        of the report, organized by reporting region 
                        and type of contract; and
                            ``(ii) an estimate by the Secretary of the 
                        total maximum number of fed cattle that may be 
                        delivered within the 6-month and 12-month 
                        periods following the date of the report, based 
                        on the provisions described in subsection 
                        (c)(2)(B) in existing contracts, organized by 
                        reporting region and type of contract.
    ``(d) Maintenance of Library or Catalog.--Information in the 
library or catalog established under subsection (a) about types of 
contracts that are no longer offered or in use shall be removed from 
the library or catalog.
    ``(e) Confidentiality.--The reporting requirements for packers 
under this section shall be subject to the confidentiality protections 
provided under section 251 of the Agricultural Marketing Act of 1946 (7 
U.S.C. 1636).
    ``(f) Violations.--It shall be unlawful and a violation of this Act 
for any packer to willfully fail or refuse--
            ``(1) to provide to the Secretary accurate information 
        required under this section; or
            ``(2) to comply with any other requirement of this section.
    ``(g) Authorization of Appropriations.--There are authorized to be 
appropriated to the Secretary such sums as are necessary to carry out 
this section.''.

SEC. 3. CASH MARKET ACQUISITION OF CATTLE.

    Title II of the Packers and Stockyards Act, 1921 (7 U.S.C. 191 et 
seq.) (as amended by section 2), is amended by adding at the end the 
following:

            ``Subtitle D--Cash Market Acquisition of Cattle

``SEC. 241. DEFINITIONS.

    ``In this subtitle:
            ``(1) Negotiated grid purchase.--The term `negotiated grid 
        purchase' means a purchase of cattle by a packer from a 
        producer under which--
                    ``(A) the buyer-seller interaction results in a 
                negotiated base price, which may be adjusted by 
                premiums and discounts; and
                    ``(B) the cattle are scheduled for delivery to the 
                packer not more than 14 days after the date on which 
                the agreement for purchase is made.
            ``(2) Negotiated purchase.--The term `negotiated purchase' 
        means a purchase of cattle (commonly known as a `cash' or `spot 
        market' purchase) by a packer from a producer under which--
                    ``(A) the buyer-seller interaction that results in 
                the purchase and the agreement on the actual base price 
                for the purchase occur on the same day; and
                    ``(B) the cattle are scheduled for delivery to the 
                packer not more than 30 days after the date on which 
                the agreement for purchase is made.
            ``(3) Packer.--The term `packer' does not include a packer 
        that owns only 1 livestock processing plant.
            ``(4) Producer.--The term `producer' has the meaning given 
        the term in section 212 of the Agricultural Marketing Act of 
        1946 (7 U.S.C. 1635a).
            ``(5) Regional mandatory minimum.--The term `regional 
        mandatory minimum' means, for each reporting region (as 
        designated by the Agricultural Marketing Service), of the 
        quantity of cattle purchased for slaughter by a packer in that 
        region each slaughter week, the minimum percentage of such 
        cattle that is required to be purchased through negotiated 
        purchases or negotiated grid purchases from producers.
            ``(6) Slaughter week.--The term `slaughter week' has the 
        meaning given the term `current slaughter week' in section 212 
        of the Agricultural Marketing Act of 1946 (7 U.S.C. 1635a).

``SEC. 242. REGIONAL MANDATORY MINIMUMS.

    ``(a) In General.--Not later than 1 year after the date of 
enactment of this subtitle, the Secretary shall establish regional 
mandatory minimums for the purpose of enhancing price discovery and 
transparency for cattle market participants.
    ``(b) Public Input.--In carrying out subsection (a), the Secretary 
shall make each proposed regional mandatory minimum subject to a notice 
and comment period.
    ``(c) Considerations.--In carrying out subsection (a) for each 
reporting region, the Secretary shall consider the following factors:
            ``(1) The number of packers in the reporting region.
            ``(2) The availability of cattle in the reporting region.
            ``(3) Pre-existing contractual arrangements of packers in 
        the reporting region.
    ``(d) Enforcement.--On establishing regional mandatory minimums 
under subsection (a), the Secretary shall--
            ``(1) regularly monitor compliance by packers with those 
        regional mandatory minimums; and
            ``(2) enforce this section in accordance with section 
        203.''.

SEC. 4. 14-DAY CATTLE SLAUGHTER.

    (a) Definition of Cattle Committed.--Section 221(1) of the 
Agricultural Marketing Act of 1946 (7 U.S.C. 1635d(1)) is amended by 
striking ``7-day'' and inserting ``14-day''.
    (b) Daily Reporting.--Section 222(c)(1) of the Agricultural 
Marketing Act of 1946 (7 U.S.C. 1635e(c)(1)) is amended by adding at 
the end the following:
                    ``(E) Packer purchase commitments, which shall be 
                equal to the number of cattle, organized by cattle 
                type, scheduled for delivery to a packer for slaughter 
                for each of the next 14 calendar days.''.

SEC. 5. PUBLIC AVAILABILITY OF INFORMATION.

    Section 251(a) of the Agricultural Marketing Act of 1946 (7 U.S.C. 
1636(a)) is amended--
            (1) by redesignating paragraphs (1) and (2) as 
        subparagraphs (A) and (B), respectively, and indenting 
        appropriately;
            (2) in the matter preceding subparagraph (A) (as so 
        redesignated), by striking ``The Secretary shall make available 
        to the public information'' and inserting the following:
            ``(1) In general.--The Secretary shall make available to 
        the public all information''; and
            (3) by adding at the end the following:
            ``(2) Effect.--Nothing in this section permits the 
        Secretary, or any officer or employee of the Secretary, to 
        withhold from the public the information, statistics, and 
        documents described in paragraph (1).''.
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