HR 1526 IH

To prohibit excessive concentration resulting from mergers among certain purchasers, processors, and sellers of livestock, poultry, and basic agricultural commodities; to require the Attorney General to establish an Office of Special Counsel for Agriculture, and for other purposes.

To prohibit excessive concentration resulting from mergers among certain purchasers, processors, and sellers of livestock, poultry, and basic agricultural commodities; to require the Attorney General to establish an Office of Special Counsel for Agriculture, and for other purposes.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

This Act may be cited as the `Agriculture Competition Enhancement Act of 2001'.

SEC. 2. LIMITATION ON MERGERS.

It shall be unlawful for a person in the business of purchasing livestock, poultry, or a basic agricultural commodity for wholesale resale either unprocessed or processed, to acquire directly or indirectly the voting securities or assets of any person if--

(1) the total amount of--

(A) voting securities, or assets relating to the purchasing, processing, or selling of livestock, poultry, or a basic agricultural commodity; or

(B) annual net sales of such livestock, poultry, or basic agricultural commodity;

of each person exceeds $1,000,000,000; and

(2) the acquisition of such voting securities or such assets by the acquiring person would reduce competition so as to have a negative effect on prices paid to producers of any livestock, poultry, or basic agricultural commodities.

SEC. 3. PREMERGER NOTICE REQUIREMENT.

(a) NOTICE- Whenever a person in the business of purchasing livestock, poultry, or a basic agricultural commodity for wholesale resale either unprocessed or processed, files a notification under section 7A of the Clayton Act (15 U.S.C. 18a), such person shall file simultaneously with the Secretary a notice in accordance with rules issued by the Secretary, that such person has filed such notification.

(b) PUBLIC COMMENTS- The Secretary shall--

(1) publish promptly in the Federal Register a copy of each notice received under subsection (a),

(2) accept public comments on the proposed merger described in such notice, and

(3) consider as part of the review required by subsection (c), such comments timely received.

(c) REVIEW- Not later than 30 days after receiving a notice filed under subsection (a), the Secretary shall--

(1) review the proposed acquisition described in such notice;

(2) determine--

(A) the probable effects such acquisition would have on the prices paid to producers of any livestock, poultry, or basic agricultural commodities who sell to, buy from, or bargain with 1 or more of the persons involved in the proposed acquisition; and

(B) whether such acquisition would--

(i) result in significantly increased market power for any of such persons; and

(ii) increase the potential for anticompetitive or predatory pricing conduct by any of such persons;

(3) prepare a report containing--

(A) the detailed findings made by the Secretary as a result of such review and such determination; and

(B) an economic analysis of the Secretary regarding whether such acquisition may substantially lessen competition or tend to create a monopoly; and

(4) transmit to the Office of Special Counsel for Agriculture, and shall publish in the Federal Register, simultaneously, a copy of such report.

SEC. 4. ENFORCEMENT PROVISIONS.

Sections 4B, 4C, 4E, 4F, 4G, 4H, 12, 13, 15, and 16 of the Clayton Act (15 U.S.C. 15b, 15c, 15e, 15f, 15g, 15h, 22, 23, 25, 26a) shall apply with respect to a violation of section 2 in the same manner as such sections apply with respect to a violation of the antitrust laws.

SEC. 5. SPECIAL COUNSEL FOR AGRICULTURE.

(a) ESTABLISHMENT OF OFFICE- The Attorney General shall establish in the Department of Justice an Office of Special Counsel for Agriculture that shall handle agricultural antitrust issues and related matters, as determined by the Attorney General.

(b) APPOINTMENT- The Special Counsel for Agriculture may be appointed by the Attorney General only after the expiration of the 30-day period beginning on the date the Attorney General publishes in the Federal Register the name of the individual proposed to be appointed and requests public comment with respect to the appointment of such individual.

SEC. 6. GAO STUDY.

(a) IN GENERAL- The Comptroller General shall conduct a study and make findings and recommendations with respect to--

(1) whether the Grain Inspection, Packers and Stockyard Administration needs additional resources in order to expand its capability to monitor and investigate the competitive implications of structural changes and practices in the meat packing industry; and

(2) whether there are disparities in the Grain Inspection, Packers and Stockyard Administration's administrative authority with regard to the poultry, beef, and pork industries.

(b) REPORT- The Comptroller General shall submit a report to Congress on the study, findings, and recommendations required by subsection (a) not later than 1 year after the date of enactment of this Act.

SEC. 7. DEFINITIONS.

For purposes of this Act--

(1) the term `antitrust laws' has the meaning given such term in subsection (a) of the 1st section of the Clayton Act (15 U.S.C. 12(a)),

(2) the term `basic agricultural commodity' means corn, wheat, or soybeans,

(3) the term `livestock' means cattle, sheep, goats, swine, or equine animals used for food or in the production of food,

(4) the term `person' has the meaning given such term in subsection (a) of the 1st section of the Clayton Act (15 U.S.C. 12(a)),

(5) the term `poultry' means chickens, turkeys, ducks, geese, or other domestic fowl used for food or in the production of food, and

(6) the term `Secretary' means the Secretary of Agriculture.