I 116TH CONGRESS 2D SESSION H. R. 8489 To make improvements with respect to the pricing of cattle in the United States, and for other purposes. IN THE HOUSE OF REPRESENTATIVES OCTOBER 1, 2020 Mr. JOHNSON of South Dakota (for himself, Mr. SOTO, Mr. CONAWAY, Mr. CUELLAR, Mr. LUCAS, Mr. MARSHALL, Mr. ROUZER, Mr. THOMPSON of Pennsylvania, Mr. CRAWFORD, Mr. GIANFORTE, Mr. HAGEDORN, Mr. EMMER, and Mr. SMITH of Missouri) introduced the following bill; which was referred to the Committee on Agriculture, and in addition to the Committees on Financial Services, Energy and Commerce, and Foreign Affairs, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdic- tion of the committee concerned A BILL To make improvements with respect to the pricing of cattle in the United States, and for other purposes. Be it enacted by the Senate and House of Representa- 1 tives of the United States of America in Congress assembled, 2 SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 3 (a) IN GENERAL.—This Act may be cited as the 4 ‘‘Price Reform In Cattle Economics Act’’ or the ‘‘PRICE 5 Act’’. 6 VerDate Sep 11 2014 00:09 Nov 13, 2020 Jkt 019200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H8489.IH H8489 kjohnson on DSK79L0C42PROD with BILLS 2 •HR 8489 IH (b) TABLE OF CONTENTS.—The table of contents for 1 this Act is as follows: 2 Sec. 1. Short title; table of contents. Sec. 2. Membership of the Committee on Foreign Investment in the United States. Sec. 3. Overtime and holiday fee relief for small meat, poultry, and egg proc- essing plants. Sec. 4. Interstate internet sales of certain State-inspected meat allowed. Sec. 5. Interstate internet sales of certain State-inspected poultry allowed. Sec. 6. Assistance for new and expanded livestock or meat processors. Sec. 7. New and expanding livestock or meat processing grants. Sec. 8. Research on meat and poultry processing facilities. Sec. 9. Improving farm management knowledge and skills for livestock pro- ducers. Sec. 10. Feasibility study on implementing requirements with respect to re- ported negotiated cash sales of cattle to individual packing plants. Sec. 11. Cattle contract library. Sec. 12. Dissemination to farm and agricultural workers of information and training on best practices used to respond to the COVID–19 pandemic. Sec. 13. Cover crops planted due to prevented planting. Sec. 14. Emergency use of CRP land during pandemic. SEC. 2. MEMBERSHIP OF THE COMMITTEE ON FOREIGN IN- 3 VESTMENT IN THE UNITED STATES. 4 Section 721(k)(2) of the Defense Production Act of 5 1950 (50 U.S.C. 4565(k)(2)) is amended— 6 (1) by redesignating subparagraphs (H) 7 through (J) as subparagraphs (I) through (K), re- 8 spectively; and 9 (2) by inserting after subparagraph (G) the fol- 10 lowing: 11 ‘‘(H) The Secretary of Agriculture.’’. 12 VerDate Sep 11 2014 00:09 Nov 13, 2020 Jkt 019200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H8489.IH H8489 kjohnson on DSK79L0C42PROD with BILLS 3 •HR 8489 IH SEC. 3. OVERTIME AND HOLIDAY FEE RELIEF FOR SMALL 1 MEAT, POULTRY, AND EGG PROCESSING 2 PLANTS. 3 (a) DEFINITIONS.—In this section: 4 (1) COVERED ACT.—The term ‘‘covered Act’’ 5 means— 6 (A) the Federal Meat Inspection Act (21 7 U.S.C. 601 et seq.); 8 (B) the Poultry Products Inspection Act 9 (21 U.S.C. 451 et seq.); and 10 (C) the Egg Products Inspection Act (21 11 U.S.C. 1031 et seq.). 12 (2) ESTABLISHMENT.—The term ‘‘establish- 13 ment’’ means— 14 (A) a meat establishment subject to the re- 15 quirements of the Federal Meat Inspection Act 16 (21 U.S.C. 601 et seq.); 17 (B) a poultry establishment subject to the 18 requirements of the Poultry Products Inspec- 19 tion Act (21 U.S.C. 451 et seq.); and 20 (C) an egg products processing plant sub- 21 ject to the requirements of the Egg Products 22 Inspection Act (21 U.S.C. 1031 et seq.). 23 (3) SECRETARY.—The term ‘‘Secretary’’ means 24 the Secretary of Agriculture. 25 VerDate Sep 11 2014 00:09 Nov 13, 2020 Jkt 019200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H8489.IH H8489 kjohnson on DSK79L0C42PROD with BILLS 4 •HR 8489 IH (4) SMALL ESTABLISHMENT; VERY SMALL ES- 1 TABLISHMENT.—The terms ‘‘small establishment’’ 2 and ‘‘very small establishment’’ have the meaning 3 given those terms in the final rule entitled ‘‘Patho- 4 gen Reduction; Hazard Analysis and Critical Control 5 Point (HACCP) Systems’’ (61 Fed. Reg. 38806 6 (July 25, 1996)). 7 (b) OVERTIME AND HOLIDAY FEES.— 8 (1) IN GENERAL.—Notwithstanding any other 9 provision of law, for an inspection of an establish- 10 ment conducted pursuant to a covered Act, the Sec- 11 retary shall discount the rate charged— 12 (A) by not less than 30 percent of the 13 overtime and holiday published rate in the case 14 of a small establishment; and 15 (B) by not less than 75 percent of the 16 overtime and holiday published rate in the case 17 of a very small establishment. 18 (2) RULEMAKING; RETROACTIVE IMPLEMENTA- 19 TION.—Not later than 60 days after the date of en- 20 actment of this Act, the Secretary shall— 21 (A) complete a rulemaking establishing the 22 discounted rates required under paragraph (1); 23 and 24 VerDate Sep 11 2014 00:09 Nov 13, 2020 Jkt 019200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\H8489.IH H8489 kjohnson on DSK79L0C42PROD with BILLS 5 •HR 8489 IH (B) implement those discounted rates to 1 apply retroactively to the date of enactment of 2 this Act. 3 (c) EFFECTIVENESS.—The Secretary— 4 (1) shall carry out subsection (b) until the total 5 amount of funds appropriated pursuant to the au- 6 thorization under subsection (d) are expended; and 7 (2) may carry out subsection (b) after those 8 funds are expended only to the extent and in the 9 amount provided in advance in appropriations Acts. 10 (d) FUNDING.—There is authorized to be appro- 11 priated to carry out this section, $58,000,000, to remain 12 available until expended. 13 SEC. 4. INTERSTATE INTERNET SALES OF CERTAIN STATE- 14 INSPECTED MEAT ALLOWED. 15 (a) IN GENERAL.—Section 301(c)(2) of the Federal 16 Meat Inspection Act (21 U.S.C. 661(c)(2)) is amended, 17 by inserting after the first sentence, the following: ‘‘For 18 the purposes of this subparagraph, any retail store, res- 19 taurant, or similar retail-type establishment may sell over 20 the internet and ship by carrier in commerce (other than 21 for export to a foreign country) any State-inspected meat 22 or meat food product, provided the meat or meat food 23 product so inspected is shipped directly to household con- 24 sumers and in normal retail quantities.’’. 25 VerDate Sep 11 2014 00:09 Nov 13, 2020 Jkt 019200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\H8489.IH H8489 kjohnson on DSK79L0C42PROD with BILLS 6 •HR 8489 IH (b) CONFORMING AMENDMENTS.—Section 301 of the 1 Federal Meat Inspection Act (21 U.S.C. 661) is amend- 2 ed— 3 (1) in subsection (a)(1), by inserting before the 4 period at the end the following: ‘‘or for distribution 5 pursuant to the second sentence of paragraph 6 (c)(2)’’; and 7 (2) in subsection (c)(2), in the first sentence, by 8 inserting ‘‘or by’’ after ‘‘conducted at’’. 9 SEC. 5. INTERSTATE INTERNET SALES OF CERTAIN STATE- 10 INSPECTED POULTRY ALLOWED. 11 (a) IN GENERAL.—Section 5(c)(2) of the Poultry 12 Products Inspection Act (21 U.S.C. 454(c)(2)) is amend- 13 ed, by inserting after the first sentence, the following: 14 ‘‘For the purposes of this subparagraph, any retail store, 15 restaurant, or similar retail-type establishment may sell 16 over the internet and ship by carrier in commerce (other 17 than for export to a foreign country) any State-inspected 18 poultry product, provided the poultry product so inspected 19 is shipped directly to household consumers and in normal 20 retail quantities.’’. 21 (b) CONFORMING AMENDMENTS.—Section 5 of the 22 Poultry Products Inspection Act (21 U.S.C. 454) is 23 amended— 24 VerDate Sep 11 2014 00:09 Nov 13, 2020 Jkt 019200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\H8489.IH H8489 kjohnson on DSK79L0C42PROD with BILLS 7 •HR 8489 IH (1) in subsection (a)(1), by inserting before the 1 period at the end the following: ‘‘or for distribution 2 pursuant to the second sentence of paragraph 3 (c)(2)’’; and 4 (2) in subsection (c)(2), in the first sentence, by 5 inserting ‘‘or by’’ after ‘‘conducted at’’. 6 SEC. 6. ASSISTANCE FOR NEW AND EXPANDED LIVESTOCK 7 OR MEAT PROCESSORS. 8 (a) IN GENERAL.—The Secretary of Agriculture (in 9 this section referred to as the ‘‘Secretary’’) may make or 10 guarantee a loan for the purpose of— 11 (1) facilitating economic opportunity for live- 12 stock and meat producers seeking further processing 13 capacity and diversification of processor ownership 14 to increase competitiveness in the livestock and meat 15 industry; 16 (2) increasing value-added opportunities for 17 livestock and meat production through investment in 18 processing capacity; 19 (3) improving, developing, or financing livestock 20 and meat processing activity and employment includ- 21 ing through the financing of working capital; or 22 (4) promoting the interstate trade and local 23 sales of processed meat by financing improvements 24 VerDate Sep 11 2014 00:09 Nov 13, 2020 Jkt 019200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6201 E:\BILLS\H8489.IH H8489 kjohnson on DSK79L0C42PROD with BILLS 8 •HR 8489 IH to meet relevant Federal, State, and local regulatory 1 standards. 2 (b) ELIGIBILITY; GENERAL LIMITATIONS.— 3 (1) ELIGIBLE RECIPIENT.—An entity shall be 4 eligible for a loan or guarantee under this section if 5 the entity is— 6 (A) a public, private, or cooperative organi- 7 zation organized on a for-profit or nonprofit 8 basis; 9 (B) an Indian tribe on a Federal or State 10 reservation, or any other federally recognized 11 Indian tribal group; or 12 (C) an individual. 13 (2) FACILITY LOCATION.— 14 (A) IN GENERAL.—Except as provided in 15 subparagraph (B), a facility constructed with 16 proceeds from a loan made or guaranteed under 17 this section shall be in a rural area. 18 (B) EXCEPTION.—A facility constructed 19 with proceeds from a loan made or guaranteed 20 under this section may be in a non-rural area 21 if— 22 (i) the primary use of the loan in- 23 volved is for the facility, and the facility 24 will provide value-added processing for ag- 25 VerDate Sep 11 2014 00:09 Nov 13, 2020 Jkt 019200 PO 00000 Frm 00008 Fmt 6652 Sfmt 6201 E:\BILLS\H8489.IH H8489 kjohnson on DSK79L0C42PROD with BILLS 9 •HR 8489 IH ricultural producers that are located within 1 300 miles of the facility; 2 (ii) the applicant demonstrates to the 3 Secretary that the primary benefit of mak- 4 ing the loan or guarantee will be to provide 5 employment for residents of a rural area; 6 (iii) the loan involved will be used to 7 increase the competitiveness of meat, poul- 8 try, or seafood processing in a region; and 9 (iv) the principal amount of the loan 10 involved does not exceed $50,000,000. 11 (C) RURAL AREA DEFINED.—In this para- 12 graph, the term ‘‘rural area’’ has the meaning 13 given the term in section 343(a)(13) of the 14 Consolidated Farm and Rural Development 15 Act. 16 (3) LIMITATIONS.— 17 (A) LIMITATION ON AMOUNT OF LOAN IN- 18 VOLVED.—A loan of more than $50,000,000 19 may not be made or guaranteed under this sec- 20 tion. 21 (B) LIMITATION ON ELIGIBILITY.—A loan 22 may not be made or guaranteed under this sec- 23 tion to an entity that is owned in partnership 24 or in whole by— 25 VerDate Sep 11 2014 00:09 Nov 13, 2020 Jkt 019200 PO 00000 Frm 00009 Fmt 6652 Sfmt 6201 E:\BILLS\H8489.IH H8489 kjohnson on DSK79L0C42PROD with BILLS 10 •HR 8489 IH (i) a foreign entity; or 1 (ii) an entity that currently processes 2 over 5 percent of the daily harvest of any 3 species. 4 (c) SPECIAL RULES APPLICABLE WITH RESPECT TO 5 COOPERATIVES.— 6 (1) LIMITATION ON AMOUNT OF LOAN IN- 7 VOLVED.— 8 (A) IN GENERAL.—Notwithstanding sub- 9 section (b)(3), a loan of not more than 10 $100,000,000 may be made or guaranteed for 11 a cooperative organization under this section. 12 (B) CONDITIONS APPLICABLE IF LOAN IN- 13 VOLVED IS FOR MORE THAN $50,000,000.—A 14 loan of more than $50,000,000 may not be 15 made or guaranteed for a cooperative organiza- 16 tion under this section unless the loan is used 17 to carry out a project that— 18 (i) provides for the value-added proc- 19 essing of agricultural commodities; or 20 (ii) significantly increases competitive- 21 ness or increases capacity where insuffi- 22 cient capacity exists for livestock harvest 23 or meat processing, as determined by the 24 Secretary. 25 VerDate Sep 11 2014 00:09 Nov 13, 2020 Jkt 019200 PO 00000 Frm 00010 Fmt 6652 Sfmt 6201 E:\BILLS\H8489.IH H8489 kjohnson on DSK79L0C42PROD with BILLS 11 •HR 8489 IH (2) INTANGIBLE ASSETS.— 1 (A) IN GENERAL.—In determining whether 2 a cooperative organization is eligible for a loan 3 or guarantee under this section, the Secretary 4 may consider the market value of a properly ap- 5 praised brand name, patent, or trademark of 6 the cooperative. 7 (B) ACCOUNTS RECEIVABLE.—In the sole 8 discretion of the Secretary, if the Secretary de- 9 termines that the action would not create or 10 otherwise contribute to an unreasonable risk of 11 default or loss to the Federal Government, the 12 Secretary may take accounts receivable as secu- 13 rity for the obligations entered into in connec- 14 tion with a loan made or guaranteed under this 15 section, and a borrower may use accounts re- 16 ceivable as collateral to secure such a loan. 17 (3) PURCHASE OF COOPERATIVE STOCK.— 18 (A) IN GENERAL.—The Secretary may 19 make or guarantee a loan in accordance with 20 this section to an individual farmer or rancher 21 for the purpose of purchasing capital stock of 22 a farmer or rancher cooperative established for 23 the purpose of processing an agricultural com- 24 modity. 25 VerDate Sep 11 2014 00:09 Nov 13, 2020 Jkt 019200 PO 00000 Frm 00011 Fmt 6652 Sfmt 6201 E:\BILLS\H8489.IH H8489 kjohnson on DSK79L0C42PROD with BILLS 12 •HR 8489 IH (B) PROCESSING CONTRACTS DURING INI- 1 TIAL PERIOD.—A cooperative described in sub- 2 paragraph (A) with respect to which a farmer 3 or rancher receives a guarantee to purchase 4 stock under subparagraph (A) may contract for 5 services to process agricultural commodities or 6 otherwise process value-added agricultural prod- 7 ucts, during the 5-year period beginning on the 8 date the cooperative commences operations, in 9 order to provide adequate time for the planning 10 and construction of the processing facility of 11 the cooperative. 12 (C) FINANCIAL INFORMATION.—A farmer 13 or rancher from whom the Secretary requires fi- 14 nancial information as a condition of making or 15 guaranteeing a loan under s [Text truncated for display. Full text available on Congress.gov.]