,i #aagth ,,congress #b;d ,session ,h4 ,r4 #gfci ,,in ,,the ,,house ,,of ,,representatives ,may #c1 #bjbb,mrs4 ,axne 7for herself1 ,mr4 ,feenstra1 ,mrs4 ,hinson1 ,mrs4 ,miller-,meeks1 and ,mrs4 ,hartzler7 introduced the following bill2 which was referred to the ,committee on ,agriculture ,a ,,bill ,to amend the ,agricultural ,marketing ,act of #aidf to establish a cattle contract library1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,cattle ,price ,discovery and ,transparency ,act of #bjbb4 #b4 ,definitions 7a7 ,in general ,section #bab of the ,agricultural ,marketing ,act of #aidf 7#g ,u4,s4,c4 #afce;a7 is amended-- 7#a7 in paragraph 7#e71 by striking cattle1 and inserting cattle 7including fed cattle712 7#b7 by redesignating paragraphs 7#a7 through 7#ad7 as paragraphs 7#b71 7#c71 7#d71 7#f7 through 7#h71 7#aj71 and 7#ab7 through 7#ah71 respectively2 7#c7 by inserting before paragraph 7#b7 7as so redesignated7 the following3 7#a7 ,approved pricing mechanism ,the term approved pricing mechanism means a purchase of fed cattle made-- 7,a7 through a negotiated purchase2 7,b7 through a negotiated grid purchase2 7,c7 at a stockyard 7as defined in section #cjb of the ,packers and ,stockyards ,act1 #aiba 7#g ,u4,s4,c4 #bjb772 or 7,d7 through a trading system or platform for the purchase or sale of cattle1 or for an arrangement to purchase or sell cattle1 through any means in which multiple buyer and seller participants have the ability to1 and regularly and consistently1 make and accept bids and offers on or at the trading system or platform4 2 7#d7 by inserting after paragraph 7#d7 7as so redesignated7 the following3 7#e7 ,fed cattle ,the term fed cattle means a steer or heifer that has been finished on a ration of roughage and feed concentrates1 such as grains1 protein meal1 grass 7forage71 and other nutrient-rich feeds1 prior to slaughter4 2 7#e7 by inserting after paragraph 7#h7 7as so redesignated7 the following3 7#i7 ,mandatory minimum ,the term mandatory minimum means1 of the quantity of fed cattle purchased for slaughter by a covered packer 7as defined in section #bba7 for each processing plant1 the minimum percentage of such cattle that are required to be purchased through approved pricing mechanisms from producers that are not packers4 2 and 7#f7 by inserting after paragraph 7#aj7 7as so redesignated7 the following3 7#aa7 ,negotiated grid purchase ,the term negotiated grid purchase1 with respect to cattle1 means a purchase-- 7,a7 involving the negotiation of a base price from which premiums are added and discounts are subtracted1 determined by seller-buyer interaction and agreement on a delivery day2 and 7,b7 under which the cattle are scheduled for delivery to the packer not later than #ad days after the date on which the cattle are committed to the packer4 4 7b7 ,cattle reporting definitions ,section #bba of the ,agricultural ,marketing ,act of #aidf 7#g ,u4,s4,c4 #afce;d7 is amended-- 7#a7 in paragraph 7#a71 by striking #g-;day and inserting #ad-;day2 7#b7 in paragraph 7#h77;,b71 by striking market and inserting marketing2 7#c7 by redesignating paragraphs 7#c71 7#d71 7#e71 7#f71 7#g71 and 7#h7 as paragraphs 7#e71 7#f71 7#h71 7#i71 7#aa71 and 7#ab71 respectively2 7#d7 by inserting after paragraph 7#b7 the following3 7#c7 ,covered contract 7,a7 ,in general ,the term covered contract means any agreement1 written or oral1 between a packer and a producer for the purchase of fed cattle for slaughter4 7,b7 ,exclusion ,the term covered contract does not include a contract for a negotiated purchase4 7#d7 ,covered packer ,the term covered packer means a packer that has slaughtered during the immediately preceding #e calendar years an average of not less than #e percent of the number of fed cattle slaughtered nationally during the immediately preceding #e calendar years4 2 7#e7 by inserting after paragraph 7#f7 7as so redesignated7 the following3 7#g7 ,heifer ,the term heifer means a bovine female that has not given birth to a calf4 2 and 7#f7 by inserting after paragraph 7#i7 7as so redesignated7 the following3 7#aj7 ,steer ,the term #8steer' means a bovine male castrated before reaching sexual maturity4 4 #c4 #ad-;,day cattle slaughter report ,section #bbb7;c7 of the ,agricultural ,marketing ,act of #aidf 7#g ,u4,s4,c4 #afce;e7c77 is amended-- 7#a7 in paragraph 7#a7-- 7,a7 by striking subparagraphs 7,b7 and 7,c72 and 7,b7 by redesignating subparagraph 7,d7 as subparagraph 7,b72 7#b7 in paragraph 7#b71 by striking the information and inserting information reported under this subsection2 7#c7 by redesignating paragraph 7#b7 as paragraph 7#c72 and 7#d7 by inserting after paragraph 7#a7 the following3 7#b7 ,prior day reporting 7,a7 ,in general ,the corporate officers or officially designated representatives of each packer processing plant shall report to the ,secretary1 for each business day of the packer processing plant1 not later than #aj3jj a4m4 ,central ,time on each reporting day1 the information from the prior business day described in subparagraph 7,b74 7,b7 ,information required ,the information required under subparagraph 7,a7 shall be1 with respect to the prior business day1 the number of cattle scheduled for delivery to a packer processing plant for slaughter for each of the next #ad calendar days4 4 #d4 ,expedited carcass weights reporting ,section #bbb of the ,agricultural ,marketing ,act of #aidf 7#g ,u4,s4,c4 #afce;e7 is amended by adding at the end the following3 7f7 ,expedited carcass weights 7#a7 ,determination ,not later than #ahj days after the date of enactment of the ,cattle ,price ,discovery and ,transparency ,act of #bjbb1 the ,secretary shall determine the minimum amount of time needed by the ,secretary to publicly report the daily average carcass weight of cattle slaughtered by packer processing plants4 7#b7 ,reporting ,not later than #ahj days after the ,secretary has made a determination under paragraph 7#a71 the ,secretary shall begin publicly reporting the information described in that paragraph within the time determined under that paragraph4 4 #e4 ,mandatory reporting of cutout yield ,section #bbc of the ,agricultural ,marketing ,act of #aidf 7#g ,u4,s4,c4 #afce;f7 is amended-- 7#a7 in subsection 7a7-- 7,a7 in the subsection heading1 by striking ,daily reporting and inserting ,in ,general2 7,b7 in paragraph 7#c7-- 7i7 in subparagraph 7,c71 by striking the period at the end and inserting 2 and2 and 7ii7 by redesignating subparagraphs 7,a7 through 7,c7 as clauses 7i7 through 7iii71 respectively1 and indenting appropriately2 7,c7 by redesignating paragraphs 7#a7 through 7#c7 as subparagraphs 7,a7 through 7,c71 respectively1 and indenting appropriately2 7,d7 in the matter preceding subparagraph 7,a7 7as so redesignated71 by striking ,secretary at least and inserting the following3 8,secretary-- 7#a7 at least 2 and 7,e7 by adding at the end the following3 7#b7 at least once each year1 at a time determined by the ,secretary1 cutout yield data4 2 and 7#b7 in subsection 7b7-- 7,a7 by striking the information required to be reported under subsection 7a72 and 7,b7 by striking day4 and inserting the following3 8day-- 7#a7 the information required to be reported under subsection 7a77#a72 and 7#b7 a composite price using the information required to be reported under paragraphs 7#a7 and 7#b7 of subsection 7a74 4 #f4 ,cattle contract library ,the ,agricultural ,marketing ,act of #aidf is amended-- 7#a7 by redesignating section #bbc 7#g ,u4,s4,c4 #afce;f7 as section #bbd2 and 7#b7 by inserting after section #bbb 7#g ,u4,s4,c4 #afce;e7 the following3 #bbc4 ,cattle contract library 7a7 ,in general ,not later than #abj days after the date of enactment of the ,cattle ,price ,discovery and ,transparency ,act of #bjbb1 the ,secretary shall establish and maintain1 through the ,livestock ,mandatory ,price ,reporting program1 a library or catalog 7referred to in this section as the library71 of each type of covered contract entered into between packers and producers for the purchase of fed cattle 7including cattle that are purchased or committed for delivery71 including any schedules of premiums or discounts associated with the covered contract4 7b7 ,information collection 7#a7 ,in general ,to maintain the library1 the ,secretary shall obtain information from each packer on each type of existing covered contract of the packer by requiring a filing or other form of information submission from each packer4 7#b7 ,contract information ,information submitted to the ,secretary by a packer under paragraph 7#a7 shall include1 with respect to each existing covered contract of a packer-- 7,a7 the type of contract2 7,b7 the duration of the contract2 7,c7 a summary of the contract terms2 7,d7 provisions in the contract that may affect the price of cattle covered by the contract1 including schedules1 premiums and discounts1 financing and risk-sharing arrangements1 and transportation arrangements2 7,e7 the total number of cattle covered by the contract solely committed to the packer each week within the #f-month and #ab-month periods following the date of the contract and the percentage of cattle each week that may vary for delivery or nondelivery at the discretion of the packer1 organized by reporting region or in such other manner as the ,secretary may determine2 7,f7 in the case of a contract in which a specific number of cattle are not solely committed to the packer-- 7i7 an indication that the contract is an open commitment2 and 7ii7 any weekly1 monthly1 annual1 or other limitations or requirements on the number of cattle that may be delivered to the packer under the contract1 including the percentage of cattle that may vary for delivery or nondelivery in a given time period at the discretion of the packer2 and 7,g7 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 #f-month and #ab-month periods following the date of the contract4 7c7 ,availability of information 7#a7 ,in general ,the ,secretary shall make publicly available to producers and other interested persons information 7including the information described in subsection 7b77#b771 in a user-friendly format1 on the types of covered contracts in the library1 including notice 7on a real-time basis1 if practicable7 of the types of covered contracts that are entered into between packers and producers for the purchase of fed cattle4 7#b7 ,monthly report 7,a7 ,in general ,beginning #cj days after the library is established1 the ,secretary shall make the information obtained each month in the library available in a monthly report to producers and other interested persons4 7,b7 ,contents ,the monthly report described in subparagraph 7,a7 shall include-- 7i7 based on the information collected under subsection 7b77#b77;,e71 an estimate by the ,secretary of the total number of fed cattle committed under covered contracts for delivery to packers within the #f-month and #ab-month periods following the date of the report1 organized by reporting region and type of contract2 7ii7 based on the information collected under subsection 7b77#b77;,f71 the number of covered contracts with an open commitment and any weekly1 monthly1 annual1 or other limitations or requirements on the number of cattle that may be delivered under such contracts1 including the percentage of cattle that may vary for delivery or nondelivery in a given time period at the discretion of the packer2 and 7iii7 based on the information collected under subsection 7b77#b77;,g71 an estimate by the ,secretary of the total maximum number of fed cattle that may be delivered within the #f-month and #ab-month periods following the date of the report1 organized by reporting region and type of contract4 7d7 ,maintenance of library ,information in the library about types of contracts that are no longer offered or in use shall be removed from the library4 7e7 ,confidentiality ,the reporting requirements for packers under this section shall be subject to the confidentiality protections provided under section #bea4 7f7 ,violations ,it shall be unlawful and a violation of this ,act for any packer to willfully fail or refuse-- 7#a7 to provide to the ,secretary accurate information required under this section2 or 7#b7 to comply with any other requirement of this section4 7g7 ,authorization of appropriations ,there are authorized to be appropriated to the ,secretary such sums as are necessary to carry out this section4 4 #g4 ,market acquisition of fed cattle 7a7 ,sense of the ,house of ,representatives ,it is the sense of the ,house of ,representatives that-- 7#a7 all participants in the fed cattle market have a responsibility to contribute to sufficient levels of negotiated trade of fed cattle in all cattle feeding regions in order to achieve competitive bidding and maximum transparency in all relevant markets and robust price discovery for the benefit of all market participants2 7#b7 covered packers that use negotiated market prices or internal formulations thereof as the basis for formula marketing arrangements may have incentives to not participate in price discovery in fed cattle markets1 including in order to influence the price1 especially if the majority of the cattle purchases are under fed cattle formula marketing arrangements under which it is particularly important to have minimum participation2 and 7#c7 the ,department of ,agriculture should examine academic literature regarding minimum levels of negotiated transactions necessary to achieve robust price discovery1 eliminate the potential for price manipulation1 and enhance cattle producer leverage in the marketplace in each of the cattle marketing regions4 7b7 ,penalties ,section #bec7;a7 of the ,agricultural ,marketing ,act of #aidf 7#g ,u4,s4,c4 #afcf;b7a77 is amended-- 7#a7 in paragraph 7#a7-- 7,a7 by striking the paragraph designation and heading and all that follows through ,any packer and inserting the following3 7#a7 ,penalty amount 7,a7 ,in general ,except as provided in subparagraph 7,b71 any packer 2 and 7,b7 by adding at the end the following3 7,b7 ,mandatory minimum violation ,any packer or other person that violates section #bei may be assessed a civil penalty by the ,secretary of not more than #ij1jjj for each violation 7as adjusted for inflation74 2 and 7#b7 in paragraph 7#b7-- 7,a7 by striking ,each day and inserting the following3 7,a7 ,in general ,except as provided in subparagraph 7,b71 each day 2 and 7,b7 by adding at the end the following3 7,b7 ,mandatory minimum violation ,each week during which a violation of section #bei continues shall be considered to be a separate violation4 4 7c7 ,mandatory minimums ,the ,agricultural ,marketing ,act of #aidf is amended-- 7#a7 by redesignating sections #bei and #bfj 7#g ,u4,s4,c4 #afcf;h1 #afcf;i7 as sections #bfj and #bfa1 respectively2 and 7#b7 by inserting after section #beh 7#g ,u4,s4,c4 #afcf;g7 the following3 #bei4 ,mandatory minimums 7a7 ,purpose ,the purpose of this section is to establish mandatory minimums-- 7#a7 to enhance price discovery1 transparency1 and cattle producer leverage for cattle market participants2 and 7#b7 to minimize and mitigate conflicts of interest and other incentives for a covered packer to influence the base price of formula marketing arrangements for the benefit of the covered packer through action or inaction in the market in which the base price is determined4 7b7 ,establishment 7#a7 ,in general ,not later than #b years after the date of enactment of the ,cattle ,price ,discovery and ,transparency ,act of #bjbb1 the ,secretary shall establish-- 7,a7 #e to #g contiguous regions 7referred to in this section as covered regions7 that-- 7i7 together encompass the entire continental ,united ,states2 and 7ii7 to the extent practicable1 reasonably reflect similar fed cattle purchase practices2 7,b7 a mandatory minimum-- 7i7 for each covered region established under subparagraph 7,a72 and 7ii7 that shall be applicable with respect to each processing plant of a covered packer located in that covered region2 and 7,c7 a time period within which a covered packer shall be required to meet the applicable mandatory minimum1 which shall be not less than #a week but not more than #cj days4 7#b7 ,modifications ,the ,secretary-- 7,a7 shall review the mandatory minimums established under paragraph 7#a7 not later than #b years after the date of establishment and periodically thereafter1 but not less frequently than once every #e years2 and 7,b7 modify any such mandatory minimum1 as necessary1 after consulting with representatives of the ,united ,states cattle and beef industry and in accordance with paragraph 7#d74 7#c7 ,public input ,in carrying out this subsection1 the ,secretary shall make all proposed mandatory minimums subject to notice and comment rulemaking and a cost-benefit analysis4 7#d7 ,considerations ,in establishing or modifying mandatory minimums under this subsection for any covered region1 the ,secretary shall consider the following factors3 7,a7 ,the number of covered packers in the covered region4 7,b7 ,the availability of fed cattle in the covered region4 7,c7 ,pre-existing contractual arrangements of packers in the covered region4 7,d7 ,the number of pricing transactions 7pens of cattle sold7 in the covered region4 7,e7 ,the proportion of fed cattle purchased in the covered region through negotiated purchases or negotiated grid purchases relative to the number of formula marketing arrangements that use the negotiated prices or negotiated grid prices as base prices4 7#e7 ,initial mandatory minimum requirement ,the initial mandatory minimum established under paragraph 7#a77;,b7 for each covered region shall be-- 7,a7 not less than the average percentage of negotiated purchases and negotiated grid purchases made in that covered region between ,january #a1 #bjbj1 and ,january #a1 #bjbb2 and 7,b7 not more than #ej percent4 7c7 ,purchases ,a covered packer shall1 with respect to each processing plant of the covered packer1 purchase through an approved pricing mechanism not less than the percentage of fed cattle required under the mandatory minimum established under subsection 7b7 for the covered region in which the processing plant is located4 7d7 ,enforcement 7#a7 ,in general ,on establishing mandatory minimums under subsection 7b71 the ,secretary-- 7,a7 shall regularly monitor compliance by covered packers with those mandatory minimums2 and 7,b7 in the case of noncompliance by a covered packer in a given period1 may allow the covered packer to remedy the noncompliance by purchasing the applicable shortfall in the approved pricing mechanism in #a or more subsequent periods1 subject to paragraph 7#b74 7#b7 ,nonremedy ,the ,secretary shall not allow a covered packer to remedy noncompliance under paragraph 7#a77;,b7 if the covered packer has a pattern or practice of noncompliance1 as determined by the ,secretary4 7e7 ,effect on premiums ,nothing in this section prohibits a formula marketing arrangement from including a premium in addition to the base price1 including a premium for meat quality1 consistency1 breed1 production method1 branding1 or any other value-added effort4 4