,,ib ,union ,calendar ,no4 #bgi #aagth ,,congress #b;d ,session ,h4 ,r4 #dadj ,report ,no4 #aag-cfh ,,in ,,the ,,house ,,of ,,representatives ,june #bd1 #bjba,mr4 ,johnson of ,south ,dakota 7for himself1 ,ms4 ,spanberger1 ,mr4 ,mann1 ,mrs4 ,hartzler1 ,mr4 ,baird1 ,mr4 ,cuellar1 ,mrs4 ,fischbach1 ,mr4 ,feenstra1 and ,mr4 ,lucas7 introduced the following bill2 which was referred to the ,committee on ,agriculture ,june #ad1 #bjbb;,additional sponsors3 ,mr4 ,smith of ,nebraska1 ,mr4 ,delgado1 ,mrs4 ,cammack1 ,mr4 ,westerman1 ,mrs4 ,harshbarger1 ,ms4 ,cheney1 ,mr4 ,cline1 ,mr4 ,emmer1 ,mrs4 ,axne1 ,ms4 ,wexton1 ,mr4 ,o',halleran1 and ,mr4 ,gottheimer ,june #ad1 #bjbb,reported with an amendment2 committed to the ,committee of the ,whole ,house on the ,state of the ,union and ordered to be printed,strike out all after the enacting clause and insert the part printed in italic,for text of introduced bill1 see copy of bill as introduced on ,june #bd1 #bjba ,a ,,bill ,to make improvements with respect to the pricing of cattle in the ,united ,states1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,butcher ,block ,act4 #b4 ,assistance for new and expanded livestock or meat processors 7a7 ,in general ,the ,secretary of ,agriculture 7in this section referred to as the ,secretary7 may make or guarantee a loan for the purpose of-- 7#a7 increasing capacity of livestock and poultry processing1 facilitating economic opportunity for livestock and poultry producers through processing activities1 and diversifying processing ownership2 7#b7 increasing the customer base or revenue returns of livestock and poultry producers through investment in processing capacity2 7#c7 improving1 developing1 or financing livestock and poultry processing capacity or employment including through the financing of working capital2 or 7#d7 promoting the interstate trade and local sales of processed livestock and poultry by financing improvements to meet relevant ,federal1 ,state1 and local regulatory standards4 7b7 ,eligibility2 general limitations 7#a7 ,eligible recipient ,an entity shall be eligible for a loan or guarantee under this section if the entity is-- 7,a7 a public1 private1 or cooperative organization organized on a for-profit or nonprofit basis2 7,b7 an ,indian tribe on a ,federal or ,state reservation1 or any other federally recognized ,indian tribal group2 or 7,c7 an individual4 7#b7 ,facility location 7,a7 ,in general ,except as provided in subparagraph 7,b71 a facility constructed1 expanded1 modified1 refurbished1 or re-equipped with proceeds from a loan made or guaranteed under this section shall be in a rural area4 7,b7 ,exception ,a facility constructed1 expanded1 modified1 refurbished1 or re-equipped with proceeds from a loan made or guaranteed under this section may be in a non-rural area if-- 7i7 the primary use of the loan involved is for the facility1 and the facility will increase the customer base or revenue returns of livestock and poultry producers that are located within #cjj miles of the facility2 7ii7 the loan involved will be used to increase the capacity in livestock and poultry processing in a region2 and 7iii7 the principal amount of the loan involved does not exceed #ej1jjj1jjj4 7,c7 ,rural area defined ,in this paragraph1 the term rural area has the meaning given the term in section #cdc7;a77#ac7 of the ,consolidated ,farm and ,rural ,development ,act 7#g ,u4,s4,c4 #aiia7;a77#ac774 7#c7 ,limitations 7,a7 ,limitation on amount of loan involved ,a loan of more than #ej1jjj1jjj may not be made or guaranteed under this section4 7,b7 ,limitation on eligibility ,a loan may not be made or guaranteed under this section to an entity that is owned in partnership or in whole by-- 7i7 a foreign entity2 or 7ii7 an entity that currently processes over #e percent of the daily harvest of any species4 7c7 ,special rules applicable with respect to cooperatives 7#a7 ,limitation on amount of loan involved 7,a7 ,in general ,notwithstanding subsection 7b77#c71 a loan of not more than #ajj1jjj1jjj may be made or guaranteed for a cooperative organization under this section4 7,b7 ,conditions applicable if loan involved is for more than #ej1jjj1jjj ,a loan of more than #ej1jjj1jjj may not be made or guaranteed for a cooperative organization under this section unless the loan is used to carry out a project that significantly increases the livestock and poultry processing in a region1 where insufficient processing capacity exists1 as determined by the ,secretary4 7#b7 ,intangible assets 7,a7 ,in general ,in determining whether a cooperative organization is eligible for a loan or guarantee under this section1 the ,secretary may consider the market value of a properly appraised brand name1 patent1 or trademark of the cooperative4 7,b7 ,accounts receivable ,in the sole discretion of the ,secretary1 if the ,secretary determines that the action would not create or otherwise contribute to an unreasonable risk of default or loss to the ,federal ,government1 the ,secretary may take accounts receivable as security for the obligations entered into in connection with a loan made or guaranteed under this section1 and a borrower may use accounts receivable as collateral to secure such a loan4 7#c7 ,purchase of cooperative stock 7,a7 ,in general ,the ,secretary may make or guarantee a loan in accordance with this section to an individual farmer or rancher for the purpose of purchasing capital stock of a farmer or rancher cooperative undertaking an eligible project under this section4 7,b7 ,processing contracts during initial period ,a cooperative described in subparagraph 7,a7 with respect to which a farmer or rancher receives a guarantee to purchase stock under subparagraph 7,a7 may contract for services to fulfill any eligible purpose under this section1 during the #e-year period beginning on the date the cooperative commences operations1 in order to provide adequate time for the planning and construction of the processing facility of the cooperative4 7,c7 ,financial information ,a farmer or rancher from whom the ,secretary requires financial information as a condition of making or guaranteeing a loan under subparagraph 7,a7 shall provide the information in the manner generally required by commercial agricultural lenders in the geographical area in which the farmer or rancher is located4 7d7 ,conditions applicable with respect to using loan involved for refinancing ,a borrower may use #be percent of a loan made or guaranteed under this section to refinance a loan made for a purpose described in subsection 7a7 if-- 7#a7 the borrower is current and performing with respect to the loan to be refinanced2 7#b7 the borrower has not defaulted on any payment required to be made with respect to the loan to be refinanced2 7#c7 none of the collateral for the loan to be refinanced has been converted2 and 7#d7 there is adequate security or full collateral for the loan to be refinanced4 7e7 ,loan appraisal ,the ,secretary may require that any appraisal made in connection with a loan made or guaranteed under this section be conducted by a specialized appraiser that uses standards that are similar to standards used for similar purposes in the private sector1 as determined by the ,secretary4 7f7 ,preference ,in making or guaranteeing a loan under this section1 the ,secretary shall give a preference to applicants that have experience in livestock and poultry processing and can quickly scale-up to increase overall processing capacity in the region involved4 7g7 ,limitations on authorization of appropriations ,there is authorized to be appropriated to carry out this section #ajj1jjj1jjj for each of fiscal years #bjbc through #bjbe4 #c4 ,new and expanding livestock or meat processing grants 7a7 ,in general ,the ,secretary of ,agriculture may make grants to-- 7#a7 expand1 diversify1 and increase capacity in livestock or poultry processing activities2 7#b7 improve compliance with livestock and poultry processing statutes 7including the regulations issued thereunder71 such as the ,federal ,meat ,inspection ,act 7#ba ,u4,s4,c4 #ffa7 and the ,poultry ,products ,inspection ,act 7#ba ,u4,s4,c4 #ded72 7#c7 identify and reduce barriers to entry for new for new livestock and poultry processers2 or 7#d7 update1 expand1 or otherwise improve existing facilities4 7b7 ,eligible grantees ,an entity shall be eligible for a grant under this section if the entity is-- 7#a7 a governmental entity2 7#b7 a public1 private1 or cooperative organization organized on a for-profit or nonprofit basis2 or 7#c7 an ,indian tribe on a ,federal or ,state reservation or any other federally recognized ,indian tribal group4 7c7 ,use of funds ,an entity to which a grant is made under this section may use the grant funds to establish or support new or expanded livestock or poultry processing activity1 or other activity which will increase the customer base or revenue returns of livestock and poultry producers1 by undertaking project1 that-- 7#a7 identifies and analyzes business opportunities1 including feasibility studies as required for creditworthiness2 7#b7 identifies1 trains1 and provides technical assistance to existing or prospective rural entrepreneurs and managers or processing facilities2 7#c7 provides technical assistance to gain compliance with ,federal1 ,state1 or local regulations2 7#d7 conducts regional1 community1 and local economic development planning and coordination1 and leadership development2 or 7#e7 establishes a center for training1 technology1 and trade that will provide training to livestock or poultry processing employees4 7d7 ,preference ,in awarding grants under this section1 the ,secretary shall give a preference to applicants that have experience in livestock and poultry processing and can quickly scale-up to increase overall processing capacity in the region involved4 7e7 ,limitations on authorization of appropriations ,there is authorized to be appropriated to carry out this section #bj1jjj1jjj for each of fiscal years #bjbc through #bjbe4 ,june #ad1 #bjbb,reported with an amendment2 committed to the ,committee of the ,whole ,house on the ,state of the ,union and ordered to be printed