,i  #aafth ,,congress  #b;d ,session    
,h4 ,r4 #geja  ,,in ,,the ,,house ,,of  
,,representatives  ,july #i1 #bjbj,mrs4 
,axne 7for herself1 ,ms4 ,finkenauer1   
and ,mr4 ,loebsack7 introduced the      
following bill2 which was referred to   
the ,committee on ,agriculture  ,a      
,,bill  ,to amend the ,agricultural     
,marketing ,act of #aidf to foster      
efficient markets and increase          
competition and transparency among      
packers that purchase livestock from    
producers4  #a4 ,spot market purchases  
of livestock by packers ,chapter #e of  
subtitle ,b of the ,agricultural        
,marketing ,act of #aidf 7#g ,u4,s4,c4  
#afcf et seq47 is amended-- 7#a7 by     
redesignating section #bfj 7#g ,u4,s4,c4
 #afcf;i7 as section #bfa2 and  7#b7 by 
inserting after section #bei the        
following3  #bfj4 ,spot market purchases
 of livestock by packers  7a7           
,definitions ,in this section3 7#a7     
,covered packer  7,a7 ,in general ,the  
term covered packer means a packer that 

is required under this subtitle to      
report to the ,secretary each reporting 
day information on the price and        
quantity of livestock purchased by the  
packer4  7,b7 ,exclusion ,the term      
covered packer does not include a packer
 that owns only #a livestock processing 
plant4  7#b7 ,livestock ,the term       
livestock does not include-- 7,a7 pork2 
7,b7 poultry2  7,c7 a dairy-bred1       
dairy-bred cross1 or beef animal over   
#cj months of age2 or  7,d7 a           
foreign-born beef animal4  7#c7         
,nonaffiliated producer ,the term       
nonaffiliated producer means a producer 
of livestock-- 7,a7 that sells livestock
 to a packer2  7,b7 that has less than  
#a percent equity interest in the       
packer1 which packer has less than #a   
percent equity interest in the producer2
  7,c7 that has no officers1 directors1 
employees1 or owners that are officers1 
directors1 employees1 or owners of the  
packer2  7,d7 that has no fiduciary     
responsibility to the packer2 and  7,e7 

in which the packer has no equity       
interest4  7#d7 ,spot market sale  7,a7 
,in general ,the term spot market sale  
means a purchase and sale of livestock  
by a packer from a producer-- 7i7 under 
an agreement that specifies a firm base 
price that may be equated with a fixed  
dollar amount on the date the agreement 
is entered into2  7ii7 under which the  
livestock are slaughtered not more than 
#ad days after the date on which the    
agreement is entered into2 and  7iii7   
under circumstances in which a          
reasonable competitive bidding          
opportunity exists on the date on which 
the agreement is entered into4  7,b7    
,reasonable competitive bidding         
opportunity ,for the purposes of        
subparagraph 7,a77iii71 circumstances in
 which a reasonable competitive bidding 
opportunity shall be considered to exist
 if-- 7i7 no written or oral agreement  
precludes the producer from soliciting  
or receiving bids from other packers2   
and  7ii7 no circumstance1 custom1 or   

practice exists that-- 7,i7 establishes 
the existence of an implied contract 7as
 determined in accordance with the      
,uniform ,commercial ,code72 and  7,,ii7
 precludes the producer from soliciting 
or receiving bids from other packers4   
7b7 ,general rule ,of the quantity of   
livestock that is slaughtered by a      
covered packer during each reporting    
week in each plant1 the covered packer  
shall slaughter not less than #ej       
percent of the quantity through spot    
market sales from nonaffiliated         
producers4  7c7 ,nonpreemption          
,notwithstanding section #bei1 this     
section does not preempt any requirement
 of a ,state or political subdivision of
 a ,state that requires a covered packer
 to purchase on the spot market a       
greater percentage of the livestock     
purchased by the covered packer than is 
required under this section4  7d7       
,relationship to other provisions       
,nothing in this section affects the    
interpretation of any other provision of

 this ,act1 including section #bjb4  4