Sec. 203. Vertical consolidation
256 words·~1 min read·
/bill/119/s/4007/is/section-203A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
Congress finds that the long-term supply contracts and similar arrangements between large packers and large feedlots can be functionally equivalent to ownership, leading over time to consolidation of feedlots, reduced demand for cattle from independent producers, and diminished competition. No covered meatpacking enterprise in the beef line of protein may slaughter, in any calendar year, more than 10 percent of the cattle produced by any single covered feedlot. If a covered meatpacking enterprise violates subsection (b), any feedlot owner or operator that sold some percentage less than 10 percent of its cattle to that covered meatpacking enterprise during the calendar year of the violation may bring a civil action against the covered meatpacking enterprise in the Federal judicial district in which the feedlot is located or in an appropriate United States district court to recover— an amount equal to 3 times the difference between the highest price the covered meatpacking enterprise paid for cattle from any covered feedlot and the lowest price the feedlot owner or operator received for cattle during the calendar year of the violation multiplied by the total number of cattle the feedlot owner or operator sold overall during that calendar year; and reasonable costs and attorney’s fees.
The Commission may impose on any covered meatpacking enterprise violating subsection
(b)a civil penalty equal to the amount described in paragraph (1)(A) with respect to each feedlot owner or operator that sold less than 10 percent of its cattle to the covered meatpacking enterprise and shall use the amount recovered to compensate such feedlots.