HF 1245

as introduced - 81st Legislature (1999 - 2000) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to agriculture; prohibiting discrimination in 
  1.3             prices in certain livestock transactions; requiring 
  1.4             daily price notices and reports; providing for 
  1.5             enforcement; imposing civil penalties; proposing 
  1.6             coding for new law in Minnesota Statutes, chapter 31B. 
  1.7   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.8      Section 1.  [31B.045] [PRICE DISCRIMINATION.] 
  1.9      Subdivision 1.  [DEFINITIONS.] (a) The definitions in this 
  1.10  subdivision apply to this section. 
  1.11     (b) "Livestock" means live cattle, swine, or sheep. 
  1.12     (c) "Packer" means a person who is engaged in the business 
  1.13  of slaughtering livestock or receiving, purchasing, or 
  1.14  soliciting livestock for slaughter if the meat products of the 
  1.15  slaughtered livestock are directly or indirectly to be offered 
  1.16  for resale or for public consumption and the meat products have 
  1.17  a total annual value of $10,000,000 or more.  "Packer" includes 
  1.18  an agent of the packer engaged in buying or soliciting livestock 
  1.19  for slaughter on behalf of a packer.  "Packer" does not include 
  1.20  a frozen food locker plant. 
  1.21     Subd. 2.  [PROHIBITION.] A packer purchasing or soliciting 
  1.22  livestock for slaughter in this state may not discriminate in 
  1.23  prices paid or offered to be paid to sellers of that livestock.  
  1.24  This section does not apply to the sale and purchase of 
  1.25  livestock if the requirements in paragraphs (a) and (b) are met. 
  1.26     (a) The price differential is based on: 
  2.1      (1) the quality of the livestock, if the packer purchases 
  2.2   or solicits the livestock based upon a payment method specifying 
  2.3   prices paid for criteria relating to carcass merit; 
  2.4      (2) actual and quantifiable costs related to transporting 
  2.5   and acquiring the livestock by the packer; or 
  2.6      (3) an agreement for the delivery of livestock at a 
  2.7   specified date or time. 
  2.8      (b) After making a differential payment to a seller, the 
  2.9   packer publishes information relating to the differential 
  2.10  pricing, including the payment method for carcass merit, 
  2.11  transportation and acquisition pricing, and an offer to enter 
  2.12  into an agreement for the delivery of livestock at a specified 
  2.13  date or time according to the same terms and conditions offered 
  2.14  to other sellers.  
  2.15     Subd. 3.  [EQUAL TERMS.] A packer shall provide all sellers 
  2.16  with the same terms and conditions offered to a seller who 
  2.17  receives a differential price based on any of the criteria 
  2.18  described in subdivision 2. 
  2.19     Subd. 4.  [DAILY PRICE NOTICE.] At the beginning of each 
  2.20  day in which livestock are purchased, a packer shall post in a 
  2.21  conspicuous place at the point of delivery all prices to be paid 
  2.22  that day for livestock. 
  2.23     Subd. 5.  [VOIDABLE AGREEMENT; FRAUD.] An agreement that 
  2.24  violates this section is voidable.  Violation of this section by 
  2.25  a packer is fraud. 
  2.26     Subd. 6.  [VIOLATIONS; CIVIL ACTION; TREBLE DAMAGES.] The 
  2.27  attorney general shall enforce this section.  The department of 
  2.28  agriculture shall refer violations of this section to the 
  2.29  attorney general.  The attorney general or any person injured by 
  2.30  a violation of this section may bring an action in district 
  2.31  court to restrain a packer from violating this section.  A 
  2.32  seller who receives a discriminatory price or who is offered 
  2.33  only a discriminatory price for livestock based upon a violation 
  2.34  of this section by a packer has a civil cause of action against 
  2.35  the packer and, if successful, must be awarded treble damages. 
  2.36     Subd. 7.  [DAILY REPORT; CIVIL PENALTY.] A packer shall 
  3.1   make available for publication and to the department of 
  3.2   agriculture a daily report setting forth information regarding 
  3.3   prices paid for livestock under each contract in force in which 
  3.4   the packer and a Minnesota resident are parties for the purchase 
  3.5   of the livestock by the packer and which sets a date for 
  3.6   delivery more than 20 days after the making of the contract. 
  3.7      The report must be completed on a form prepared by the 
  3.8   department for comparison with cash market prices for livestock 
  3.9   according to procedures required by the department.  The report 
  3.10  may not include information regarding the identity of a seller.  
  3.11     Failure of a packer to report as required by this section 
  3.12  is punishable by a civil penalty not to exceed $1,000 for each 
  3.13  day that a timely or accurate report is not published.  The 
  3.14  department shall refer to the attorney general any packer or 
  3.15  packer's agent who the department believes is in violation of 
  3.16  this section.  The attorney general may, upon referral from the 
  3.17  department, file an action in district court to enforce this 
  3.18  section.