,,ii #aagth ,,congress #ast ,session ,s4 #cbbi ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,november #ag1 #bjba,mrs4 ,fischer 7for herself1 ,mr4 ,grassley1 ,mr4 ,tester1 ,mr4 ,wyden1 ,ms4 ,ernst1 ,mr4 ,braun1 ,ms4 ,smith1 ,mrs4 ,hyde-,smith1 ,mr4 ,daines1 ,mr4 ,cassidy1 and ,mr4 ,lujn7 introduced the following bill2 which was read twice and referred to the ,committee on ,agriculture1 ,nutrition1 and ,forestry ,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 #bjba4 #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#d71 7#e71 7#f71 7#g71 7#h71 7#i71 7#aj71 7#aa71 7#ab71 7#ac71 and 7#ad7 as paragraphs 7#e71 7#f71 7#g71 7#h71 7#aj71 7#aa71 7#ab71 7#ac71 7#ae71 7#af71 and 7#ag71 respectively2 7#c7 by inserting after paragraph 7#c7 the following3 7#d7 ,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#d7 by inserting after paragraph 7#h7 7as so redesignated7 the following3 7#i7 ,negotiated grid purchase ,the term negotiated grid purchase means a purchase of fed cattle by a packer from a producer under which-- 7,a7 the buyer-seller interaction results in a negotiated base price1 which may be adjusted by premiums and discounts2 and 7,b7 the fed cattle are scheduled for delivery to the packer not more than #ad days after the date on which the agreement for purchase is made4 2 and 7#e7 by inserting after paragraph 7#ac7 7as so redesignated7 the following3 7#ad7 ,regional mandatory minimum ,the term regional mandatory minimum means1 for each reporting region 7as designated by the ,agricultural ,marketing ,service71 of the quantity of cattle purchased for slaughter by a packer 7as defined in section #bei7;a77 in that region each current slaughter week1 the minimum percentage of such cattle that are required to be purchased through negotiated purchases or negotiated grid purchases from producers4 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 by striking paragraph 7#c7 and inserting the following3 7#c7 ,formula marketing arrangement ,the term formula marketing arrangement means the advance commitment of cattle for slaughter-- 7,a7 by any means other than through a negotiated purchase1 negotiated grid purchase1 or forward contract2 and 7,b7 using a method for calculating price-- 7i7 under which the price is determined at a future date2 and 7ii7 the basis of which is a price established for a specified market1 which may be based on any publicly reported price1 including plant average price1 regional price1 downstream price1 or some other mutually agreeable price source4 2 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#d71 7#e71 7#g71 7#h71 7#aj71 and 7#ab71 respectively2 7#d7 by inserting after paragraph 7#b7 the following3 7#c7 ,contract 7,a7 ,in general ,the term 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 contract does not include a contract for a negotiated purchase4 2 7#e7 by inserting after paragraph 7#e7 7as so redesignated7 the following3 7#f7 ,heifer ,the term heifer means a bovine female that has not given birth to a calf4 2 7#f7 by inserting after paragraph 7#h7 7as so redesignated7 the following3 7#i7 ,steer ,the term #8steer' means a bovine male castrated before reaching sexual maturity4 2 and 7#g7 by inserting after paragraph 7#aj7 7as so redesignated7 the following3 7#aa7 ,type of contract 7,a7 ,in general ,the term type of contract means the classification of a contract for the purchase of cattle-- 7i7 into #a of the categories described in subparagraph 7,b72 and 7ii7 by determining the base price of the cattle4 7,b7 ,categories ,the categories for classification of a type of contract are the following3 7i7 ,formula marketing arrangement4 7ii7 ,forward contract4 7iii7 ,negotiated grid purchase contract4 4 #c4 #ad-;day cattle slaughter 7a7 ,definition of cattle committed ,section #bba7a7 of the ,agricultural ,marketing ,act of #aidf 7#g ,u4,s4,c4 #afce;d7#a77 is amended by striking #g-;day and inserting #ad-;day4 7b7 ,mandatory reporting for live cattle ,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 cattle1 organized by cattle type1 scheduled for delivery to a packer processing plant for slaughter for each of the next #ad calendar days4 4 #d4 ,daily formula base price reporting ,section #bbb7;c77#a77;,a7 of the ,agricultural ,marketing ,act of #aidf 7#g ,u4,s4,c4 #afce;e7c77#a77;,a77 is amended in the matter preceding clause 7i7 by inserting 7including base price information for cattle purchased through a formula marketing arrangement7 after day4 #e4 ,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 #bjba1 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 #f4 ,cattle contract library ,chapter #b of subtitle ,b of 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 ,subject to the availability of appropriations to carry out this section1 the ,secretary shall establish and maintain1 through the ,livestock ,mandatory ,price ,reporting program1 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 7including cattle that are purchased or committed for delivery71 including any schedules of premiums or discounts associated with the contract4 7b7 ,information collection 7#a7 ,in general ,to maintain the library or catalog established under subsection 7a71 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 packer4 7#b7 ,contracted cattle information ,information submitted to the ,secretary by a packer under paragraph 7#a7 shall include1 with respect to each existing 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 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 contract1 organized by reporting region2 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 on the number of cattle that may be delivered to the packer under the contract2 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 contracts in the library or catalog established under subsection 7a71 including notice 7on a real-time basis1 if practicable7 of the types of contracts that are being offered by packers to1 and are open to acceptance by1 producers for the purchase of fed cattle4 7#b7 ,monthly report 7,a7 ,in general ,beginning #cj days after the library or catalog is established under subsection 7a71 the ,secretary shall make the information obtained each month in the library or catalog 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 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 contracts with an open commitment and any weekly1 monthly1 annual1 or other limitations on the number of cattle that may be delivered under such contracts2 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 or catalog ,information in the library or catalog established under subsection 7a7 about types of contracts that are no longer offered or in use shall be removed from the library or catalog4 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 ,public availability of information ,section #bea7;a7 of the ,agricultural ,marketing ,act of #aidf 7#g ,u4,s4,c4 #afcf7;a77 is amended-- 7#a7 by redesignating paragraphs 7#a7 and 7#b7 as subparagraphs 7,a7 and 7,b71 respectively1 and indenting appropriately2 7#b7 in the matter preceding subparagraph 7,a7 7as so redesignated71 by striking ,the ,secretary shall make available to the public information and inserting the following3 7#a7 ,in general ,the ,secretary shall make available to the public all information 2 and 7#c7 by adding at the end the following3 7#b7 ,effect ,nothing in this section permits the ,secretary1 or any officer or employee of the ,secretary1 to withhold from the public the information1 statistics1 and documents described in paragraph 7#a74 4 #h4 ,cash market acquisition of cattle 7a7 ,sense of the ,senate ,it is the sense of the ,senate that-- 7#a7 all participants in the fed cattle market have a responsibility to contribute to regionally sufficient levels of negotiated trade of fed cattle in all cattle feeding regions in order to achieve robust price discovery2 and 7#b7 the ,department of ,agriculture should examine existing academic literature regarding minimum levels of cash transactions necessary to achieve robust price discovery and enhance cattle producer leverage in the marketplace in each of the cattle marketing regions4 7b7 ,amendment ,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 sections #bei and #bfj as sections #bfj and #bfa1 respectively2 and 7#b7 by inserting after section #beh the following3 #bei4 ,regional mandatory minimums for negotiated purchases and negotiated grid purchases 7a7 ,definition of packer 7#a7 ,in general ,in this section1 the term packer has the meaning given the term in section #bba4 7#b7 ,exclusion ,in this section1 the term packer does not include a packer that slaughters cattle at only #a livestock processing plant4 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 #bjba1 the ,secretary1 in consultation with the ,chief ,economist1 shall establish-- 7,a7 regional mandatory minimums for the purpose of enhancing price discovery1 transparency1 and cattle producer leverage for cattle market participants2 and 7,b7 methods for establishing those regional mandatory minimums1 which shall be publicly available4 7#b7 ,purchases ,a packer shall1 with respect to a packer processing plant1 purchase by negotiated purchase or negotiated grid purchase the percentage of cattle required by the regional mandatory minimum established for the region in which the packer processing plant is located4 7c7 ,public input ,in carrying out subsection 7b71 the ,secretary shall make all proposed regional mandatory minimums and proposed methods for establishing those minimums subject to a notice and comment period4 7d7 ,duration ,regional mandatory minimums established for each reporting region under subsection 7b77#a7 shall be applicable for not more than a #bd-month period4 7e7 ,considerations ,in carrying out subsection 7b7 for each reporting region1 the ,secretary1 in consultation with the ,chief ,economist1 shall consider the following factors3 7#a7 ,the number of packers in the reporting region4 7#b7 ,the availability of cattle in the reporting region4 7#c7 ,pre-existing contractual arrangements of packers in the reporting region4 7#d7 ,the number of pricing transactions 7pens of cattle sold7 in the reporting region4 7f7 ,initial requirement 7#a7 ,in general ,subject to paragraph 7#b71 the initial regional mandatory minimums established for each reporting region under subsection 7b77#a7 shall be not less than the average percentage of negotiated purchases and negotiated grid purchases in that region from the preceding #ah months4 7#b7 ,requirement ,no initial regional mandatory minimum established for a reporting region under paragraph 7#a7 shall exceed #cjj percent of the lowest initial regional mandatory minimum established under that paragraph for a region that has publicly reported a majority of weekly market information during the previous #ah months4 7g7 ,biannual review ,on establishing regional mandatory minimums under subsection 7b77#a71 the ,secretary-- 7#a7 shall review the regional mandatory minimums not less frequently than once every #b years2 and 7#b7 shall1 in consultation with the ,chief ,economist-- 7,a7 maintain existing regional mandatory minimums2 or 7,b7 modify the regional mandatory minimums after-- 7i7 consulting with representatives of the ,united ,states cattle and beef industry2 and 7ii7 making the proposed modification subject to a notice and comment period4 7h7 ,enforcement ,on establishing regional mandatory minimums under subsection 7b77#a71 the ,secretary shall-- 7#a7 regularly monitor compliance by packers with those regional mandatory minimums2 and 7#b7 enforce this section in accordance with section #bjc of the ,packers and ,stockyards ,act1 #aiba 7#g ,u4,s4,c4 #aic74 7i7 ,cost-,benefit analysis ,not later than #b years after establishing regional mandatory minimums under subsection 7b77#a71 the ,secretary1 in consultation with the ,chief ,economist1 shall conduct a quantifiable1 data-driven cost-benefit analysis regarding the operation and effect of those regional mandatory minimums4 7j7 ,application ,this section shall apply only with respect to the reporting regions designated by the ,agricultural ,marketing ,service4 4 #i4 ,maximum penalty amount ,the ,secretary of ,agriculture shall revise section #c4ia7;b77#a77lvi7 of title #g1 ,code of ,federal ,regulations 7or a successor regulation71 to establish a maximum civil penalty of #hf1aef1 which shall be adjusted for inflation in the same manner and to the same extent as civil monetary penalties under the ,federal ,civil ,penalties ,inflation ,adjustment ,act of #aiij 7#bh ,u4,s4,c4 #bdfa note74