S.Amdt. 2259

1. Adds SEC. 121__. LIMITATION ON USE OF ANTI-COMPETITIVE FORWARD CONTRACTS on page 998, between lines 7 and 8

   Adds a sectionPrinted page

   Inserted: SEC. 121__. LIMITATION ON USE OF ANTI-COMPETITIVE FORWARD CONTRACTS.

   Inserted: (a) In General.--Section 202 of the Packers and Stockyards Act, 1921 (7 U.S.C. 192), is amended--

   Inserted: (1) by striking "Sec. 202. It shall be" and inserting the following:

   Inserted: "SEC. 202. UNLAWFUL PRACTICES.

   Inserted: "(a) In General.--It shall be";

   Inserted: (2) by striking "to:" and inserting "to--";

   Inserted: (3) by redesignating subsections (a), (b), (c), (d), (e), (f), and (g) as paragraphs (1), (2), (3), (4), (5), (7), and (8), respectively, and indenting appropriately;

   Inserted: (4) in paragraph (7) (as redesignated by paragraph (3)), by designating paragraphs (1), (2), and (3) as subparagraphs (A), (B), and (C), respectively, and indenting appropriately;

   Inserted: (5) in paragraph (8) (as redesignated by paragraph (3)), by striking "subdivision (a), (b), (c), (d), or (e)" and inserting "paragraph (1), (2), (3), (4), (5), or (6)";

   Inserted: (6) in each of paragraphs (1), (2), (3), (4), (5), (7), and (8) (as redesignated by paragraph (3)), by striking the first capital letter of the first word in the paragraph and inserting the same letter in the lower case;

   Inserted: (7) in each of paragraphs (1) through (5) (as redesignated by paragraph (3)), by striking "or" at the end;

   Inserted: (8) by inserting after paragraph (5) (as redesignated by paragraph (3)) the following:

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   Inserted: "(6) except as provided in subsection (c), use, in effectuating any sale of livestock, a forward contract that--

   Inserted: "(A) does not contain a firm base price that may be equated to a fixed dollar amount on the day on which the forward contract is entered into; or

   Inserted: "(B) is based on a formula price."; and

   Inserted: (9) by adding at the end the following:

   Inserted: "(b) Exemption for Cooperatives.--Subsection (a)(6) shall not apply to--

   Inserted: "(1) a cooperative or entity owned by a cooperative, if a majority of the ownership interest in the cooperative is held by active cooperative members that--

   Inserted: "(A) own, feed, or control livestock; and

   Inserted: "(B) provide the livestock to the cooperative for slaughter;

   Inserted: "(2) a packer that is not required to report to the Secretary on each reporting day (as defined in section 212 of the Agricultural Marketing Act of 1946 (7 U.S.C. 1635a)) information on the price and quantity of livestock purchased by the packer; or

   Inserted: "(3) a packer that owns 1 livestock processing plant.".

   Inserted: (b) Definitions.--Section 2(a) of the Packers and Stockyards Act, 1921 (7 U.S.C. 182(a)) is amended by adding at the end the following:

   Inserted: "(15) Firm base price.--The term 'firm base price' means a transaction using a reference price from an external source.

   Inserted: "(16) Formula price.--

   Inserted: "(A) In general.--The term 'formula price' means any price term that establishes a base from which a purchase price is calculated on the basis of a price that will not be determined or reported until a date after the day the forward price is established.

   Inserted: "(B) Exclusion.--The term 'formula price' does not include--

   Inserted: "(i) any price term that establishes a base from which a purchase price is calculated on the basis of a futures market price; or

   Inserted: "(ii) any adjustment to the base for quality, grade, or other factors relating to the value of livestock or livestock products that are readily verifiable market factors and are outside the control of the packer.

   Inserted: "(17) Forward contract.--The term 'forward contract' means an oral or written contract for the purchase of livestock that provides for the delivery of the livestock to a packer at a date that is more than 7 days after the date on which the contract is entered into, without regard to whether the contract is for--

   Inserted: "(A) a specified lot of livestock; or

   Inserted: "(B) a specified number of livestock over a certain period of time.".

   Original wording

   On page 998, between lines 7 and 8, insert the following:

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As printed