,,ii  #aagth ,,congress  #ast ,session  
,s4 #idi  ,,in ,,the ,,senate ,,of ,,the
 ,,united ,,states  ,march #bd1         
#bjba,mr4 ,grassley 7for himself1 ,mr4  
,tester1 ,mr4 ,hoeven1 ,ms4 ,smith1 ,ms4
 ,ernst1 ,mr4 ,wyden1 ,mr4 ,rounds1 ,mr4
 ,booker1 and ,mr4 ,daines7 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 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 covered packer2 and  7,b7 7i7 that
 has less than #a percent equity        
interest in that covered packer2  7ii7  
in which that covered packer has less   
than #a percent equity interest2  7iii7 
that has no officers1 directors1        

employees1 or owners that are officers1 
directors1 employees1 or owners of that 
covered packer2 and  7iv7 that has no   
fiduciary responsibility to that covered
 packer4  7#d7 ,spot market sale  7,a7  
,in general ,the term spot market sale  
means a purchase and sale of livestock  
by a covered packer from a nonaffiliated
 producer-- 7i7 under an agreement that 
specifies a firm base price that may be 
equated with a fixed dollar amount on   
the date on which 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 which a reasonable competitive    
bidding opportunity exists on the date  
on which the agreement is entered into1 
as determined under subparagraph 7,b74  
7,b7 ,reasonable competitive bidding    
opportunity ,for the purposes of        
subparagraph 7,a77iii71 a reasonable    
competitive bidding opportunity is      
considered to exist if-- 7i7 no written 

or oral agreement precludes the         
nonaffiliated producer from soliciting  
or receiving bids from other covered    
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 nonaffiliated 
producer from soliciting or receiving   
bids from other covered 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 a greater percentage of    
livestock on the spot market than the   

percentage 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