Family Grocery and Farmer Relief Act

#4007 | S Congress #119

Subjects:

Last Action: Read twice and referred to the Committee on the Judiciary. (text: CR S883-887) (3/5/2026)

Bill Text Source: Congress.gov

Summary and Impacts
Original Text
[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 4007 Introduced in Senate (IS)]

<DOC>






119th CONGRESS
  2d Session
                                S. 4007

    To restore competition in the meatpacking industry by reducing 
 excessive concentration and market power and ultimately reduce prices 
            for American consumers, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             March 5, 2026

   Mr. Schumer (for himself, Mr. Booker, Mr. Welch, Ms. Warren, Mr. 
Sanders, Mr. Gallego, Mr. Merkley, Mr. Schatz, Mr. Durbin, Mr. Markey, 
Mr. Kim, Mr. Murphy, and Mr. Whitehouse) introduced the following bill; 
  which was read twice and referred to the Committee on the Judiciary

_______________________________________________________________________

                                 A BILL


 
    To restore competition in the meatpacking industry by reducing 
 excessive concentration and market power and ultimately reduce prices 
            for American consumers, 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 ``Family Grocery and Farmer Relief 
Act''.

SEC. 2. FINDINGS AND PURPOSES.

    (a) Findings.--Congress finds the following:
            (1) The meatpacking industry in the United States is highly 
        concentrated, with a small number of firms controlling a 
        dominant share of beef, chicken, and pork slaughtering and 
        processing.
            (2) 4 firms control 85 percent of the beef market and 67 
        percent of the pork market, which is up from 36 percent and 34 
        percent, respectively, in 1980.
            (3) 4 firms control more than 60 percent of the market in 
        chicken processing.
            (4) The scale and market dominance of large meatpacking 
        firms create substantial barriers to entry and expansion for 
        independent and regional processors, limiting competitive 
        alternatives for producers and consumers.
            (5) This highly consolidated meatpacking market has real 
        consequences for farmers, workers, and consumers.
            (6) Meatpackers have repeatedly used their market power in 
        ways that suppress wages, destroy jobs through strategic plant 
        shutdowns, and subject workers to extremely dangerous 
        conditions while prices are to their advantage.
            (7) Extreme concentration in meatpacking has resulted in 
        diminished bargaining power for independent producers, 
        increased vulnerability to unfair and discriminatory practices, 
        and reduced economic viability for rural communities.
            (8) Consumers are paying more for meat, with the Department 
        of Agriculture reporting that ground beef prices have increased 
        about 16.4 percent since last year. Meanwhile, increased 
        revenue is not flowing to farmers and ranchers as--
                    (A) in 1970, 70 percent of the consumer's beef 
                dollar went to cattle ranchers, but today, ranchers' 
                share of the consumer's beef dollar is closer to 30 
                percent; and
                    (B) profits remain with the big 4 covered 
                meatpacking enterprises.
            (9) The public interest requires competitive, transparent, 
        and resilient markets for essential food products.
    (b) Purposes.--The purposes of this Act are to--
            (1) restore competition in the meatpacking industry by 
        reducing excessive concentration and market power;
            (2) prohibit and reverse mergers and acquisitions in the 
        meatpacking sector that have materially lessened competition;
            (3) authorize and require structural separation, 
        divestiture, or breakup of dominant meatpacking firms, where 
        necessary, to restore competitive market conditions;
            (4) ensure that no firm retains or expands market power in 
        United States food and agricultural markets through capital 
        obtained by corruption, bribery, or other unlawful conduct;
            (5) deny competitive advantage derived from foreign state-
        backed or non-market financing that undermines fair competition 
        in United States markets;
            (6) protect independent cattle producers from abusive, 
        coercive, or discriminatory practices arising from excessive 
        buyer concentration;
            (7) ensure that any restructuring of the industry results 
        in safer, fairer, and more sustainable jobs for workers across 
        the supply chain;
            (8) promote the growth and viability of independent and 
        regional meat processors; and
            (9) help bring prices down for families in the United 
        States.

SEC. 3. DEFINITIONS.

    In this Act:
            (1) Beef meatpacking market.--The term ``beef meatpacking 
        market'' means the market for cattle slaughter and beef 
        processing in the United States, including the national beef 
        market and regional beef markets.
            (2) Commission.--The term ``Commission'' means the Federal 
        Trade Commission.
            (3) Covered feedlot.--The term ``covered feedlot'' means a 
        feedlot with a capacity of 24,000 head of cattle or more.
            (4) Covered foreign-controlled meatpacking enterprise.--The 
        term ``covered foreign-controlled covered meatpacking 
        enterprise'' means--
                    (A) JBS S.A. and its affiliates; and
                    (B) any other entity, as determined by rule by the 
                Commission.
            (5) Covered meatpacking enterprise.--
                    (A) In general.--Subject to subparagraph (B), the 
                term ``covered meatpacking enterprise'' has the meaning 
                given the term ``packer'' in section 201 of the Packers 
                and Stockyards Act, 1921 (7 U.S.C. 191).
                    (B) Rulemaking.--Not later than 90 days after the 
                date of enactment of this Act, the Commission shall, by 
                rule, define for purposes of this Act--
                            (i) a de minimus threshold of volume or 
                        revenue below which a person shall be excluded 
                        from the definition of a covered meatpacking 
                        enterprise under subparagraph (A); and
                            (ii) the requirements that place a person 
                        under common control or in affiliation with a 
                        covered meatpacking enterprise such that the 
                        entity shall be included in the definition of a 
                        covered meatpacking enterprise under 
                        subparagraph (A).
            (6) CR4.--The term ``CR4'' means the sum of the market 
        shares of the 4 largest firms in the relevant market.
            (7) Farmers' cooperative.--The term ``farmers' 
        cooperative'' means an organization exempt from taxation under 
        section 521 of the Internal Revenue Code of 1986.
            (8) Feedlot.--The term ``feedlot''--
                    (A) means any facility that is used in its entirety 
                or in part for the purpose of feeding livestock to be 
                slaughtered, or to be sold for slaughter, by another; 
                and
                    (B) does not include feeding incidental to the sale 
                or transportation of livestock.
            (9) HHI.--The term ``HHI'' means the Herfindahl-Hirschman 
        Index, calculated as the sum of the squares of the market 
        shares of all firms in the relevant market.
            (10) Line of protein.--The term ``line of protein'' means 
        livestock, livestock products (as defined in section 2 of the 
        Packers and Stockyards Act, 1921 (7 U.S.C. 182)), poultry, 
        poultry products (as defined in section 4 of the Poultry 
        Products Inspection Act (21 U.S.C. 453)), meats, or meat food 
        products (as defined in section 1 of the Federal Meat 
        Inspection Act (21 U.S.C. 601)) in each of the following 
        product categories:
                    (A) Beef (including cattle slaughter, beef 
                processing, and beef products).
                    (B) Pork (including hog slaughter, pork processing, 
                and pork products).
                    (C) Poultry (including chicken slaughter, 
                processing, and chicken products).
                    (D) Any additional category, as the Commission may, 
                by rule, designate to prevent evasion of this Act.
            (11) Market share.--The term ``market share'' means the 
        share of total slaughter or processing capacity, volume, or 
        sales in the relevant market, as determined by rule by the 
        Commission.
            (12) National beef market.--The term ``national beef 
        market'' means the market of the United States as a whole, or 
        such broader integrated geographic market as the Commission 
        determines appropriate, for the slaughter of cattle and 
        processing of beef products.
            (13) Regional beef market.--The term ``regional beef 
        market'' means a geographic market defined by reference to the 
        regional direct slaughter cattle reporting regions of the 
        Department of Agriculture, or any successor system of regional 
        delineation the Commission determines better reflects 
        competitive conditions.

             TITLE I--BREAKING UP THE MEATPACKING INDUSTRY

SEC. 101. LIMITATION ON OPERATION IN MULTIPLE LINES OF PROTEIN.

    (a) Prohibition.--
            (1) In general.--It shall be unlawful for a covered 
        meatpacking enterprise to own, control, or operate any entity 
        or combination of entities that engaged in more than 1 line of 
        protein in the United States, in or affecting interstate or 
        foreign commerce.
            (2) Prohibition on new acquisitions.--On and after the date 
        of enactment of this Act, no covered meatpacking enterprise may 
        acquire, directly or indirectly, control of assets or 
        operations in a line of protein other than the line of protein 
        in which the covered meatpacking enterprise already engages, in 
        violation of paragraph (1).
    (b) Divestiture Required.--The Commission shall require divestiture 
pursuant to section 102 of any covered meatpacking enterprise that 
violates subsection (a).

SEC. 102. DIVESTITURE AUTHORITY.

    (a) Commission Authority.--
            (1) In general.--With respect to any violation of section 
        101, the Commission shall develop and oversee a divestiture 
        plan for the covered meatpacking enterprise that provides for--
                    (A) the sale of assets to 1 or more independent 
                entities; or
                    (B) the creation of 1 or more new, independent 
                entities through spin-off or other structural 
                separation.
            (2) Standards.--In exercising its authority under paragraph 
        (1), the Commission shall--
                    (A) act in a manner consistent with the public 
                interest in promoting competition, protecting 
                consumers, producers, and workers, and ensuring a 
                resilient food supply, as described in section 602; and
                    (B) to the maximum extent practicable, structure 
                divestitures under this section so as to--
                            (i) avoid reconcentration of assets;
                            (ii) encourage ownership and control of 
                        divested assets by farmers' cooperatives, 
                        worker owned enterprises, and other small or 
                        mid sized businesses; and
                            (iii) prevent reacquisition of divested 
                        assets by firms whose market power contributed 
                        to the need for divestiture.
    (b) Transition; Compliance Plans.--
            (1) In general.--Not later than 120 days after the date of 
        enactment of this Act, the Commission shall develop a plan for 
        the divestiture of each covered meatpacking enterprise that, as 
        of the date of enactment of this Act, is engaged in the 
        processing of more than 1 line of protein in violation of 
        section 101.
            (2) Comment.--Not later than 30 days after the development 
        of a plan under this section, a covered meatpacking enterprise 
        shall submit to the Commission any comments on the plan.
            (3) Approval of plan.--Following the end of the comment 
        period under paragraph (2), the Commission shall consider and 
        respond to significant comments received under that paragraph 
        and approve a final version of the plan.

 TITLE II--SPECIFIC RULES FOR CONSOLIDATION IN BEEF MEATPACKING MARKET

SEC. 201. PROHIBITION ON UNLAWFUL HORIZONTAL CONSOLIDATION.

    The Commission shall require divestiture pursuant to section 202, 
as applicable, if in a regional beef market or in a national beef 
market--
            (1) the HHI exceeds 1800;
            (2) the CR4 exceeds 50 percent; or
            (3) any covered meatpacking enterprise has a market share 
        of 30 percent or more.

SEC. 202. REGIONAL AND NATIONAL BEEF MARKET DIVESTITURE AUTHORITY AND 
              PROCESS.

    (a) In General.--Divestiture under this section may consist of--
            (1) sale of 1 or more entities, facilities, or business 
        units to 1 or more independent entities; or
            (2) the creation of 1 or more new, independent entities, 
        including through spin-offs or other structural separation.
    (b) Divestiture in Regional Beef Markets.--
            (1) In general.--
                    (A) Violation under hhi or cr4 measures.--With 
                respect to a condition described in paragraph (1) or 
                (2) of section 201, the Commission shall order 
                divestiture in the regional market as follows:
                            (i) The largest covered meatpacking 
                        enterprise in the regional beef market that 
                        owns multiple beef slaughter or processing 
                        entities in that region shall divest its 
                        largest entity, facility, or business unit in 
                        that region.
                            (ii) After the divestiture required under 
                        clause (i), the Commission shall reassess the 
                        concentration in the regional beef market under 
                        section 201(a).
                            (iii) If 1 or more thresholds described in 
                        section 201 is met after the reassessment under 
                        clause (ii), the Commission shall repeat the 
                        process described in clauses (i) and (ii) as 
                        necessary, including by ordering further 
                        divestitures, until no threshold described in 
                        section 201 is met or until the Commission 
                        determines that further divestiture would not 
                        reduce market concentration.
                    (B) Violation under single firm market share 
                measure.--With respect to a condition described in 
                section 201(3), the Commission shall order divestiture 
                in the regional market of the covered meatpacking 
                enterprise meeting that condition.
            (2) Use of equitable powers to deconcentrate the market.--
        If the Commission is unable to order further divestitures under 
        subparagraph (A)(iii) of paragraph (1) and 1 or more thresholds 
        described in section 201 is still met, such as if the largest 
        covered meatpacking enterprise has only 1 entity, facility, or 
        business unit in the market which cannot be divided, the 
        Commission shall use all equitable powers to otherwise 
        deconcentrate the market until the Commission determines that 
        none of the thresholds described in section 201 are met.
    (c) Divestiture in National Beef Market.--In the national beef 
market, the Commission shall apply a substantially similar process to 
the process described in subsection (b), as appropriate, to require 
divestiture by covered meatpacking enterprises (including by ordering 
divestiture of specified entities, facilities, or business units, or 
other assets) and use all equitable powers to deconcentrate the market 
until the Commission determines that none of the thresholds described 
in section 201 are met.

SEC. 203. VERTICAL CONSOLIDATION.

    (a) Findings.--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.
    (b) Prohibition.--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.
    (c) Private Right of Action.--
            (1) In general.--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--
                    (A) 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
                    (B) reasonable costs and attorney's fees.
            (2) Civil penalty to address private injuries.--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.

TITLE III--PROHIBITING FOREIGN LEVERAGE OVER THE DOMESTIC BEEF AND PORK 
                                MARKETS

SEC. 301. FINDINGS.

    Congress finds the following:
            (1) A significant portion of domestic beef, pork, and 
        chicken processing capacity is owned or controlled by foreign-
        based multinational corporations, raising concerns relating to 
        food system resilience, transparency, and national security.
            (2) JBS S.A., a foreign-based multinational corporation, is 
        the largest beef processor operating in the United States and 
        has obtained substantial domestic meatpacking assets through a 
        sustained acquisition strategy.
            (3) In 2020, J&F Investimentos S.A. (the parent company of 
        JBS S.A.) agreed to pay more than $280,000,000 to settle 
        Department of Justice and Securities and Exchange Commission 
        charges relating to bribery and other corrupt practices 
        involving foreign government officials to obtain preferential 
        financing and other financial advantages from state-backed 
        institutions. Capital obtained through such corrupt practices 
        was used, in whole or in part, to finance acquisitions of 
        meatpacking and food processing assets in the United States.
            (4) The use of corruption-derived or preferential state-
        backed financing to acquire United States agricultural assets 
        distorted competitive conditions and disadvantaged firms that 
        relied on lawful, market-based financing.
            (5) The People's Republic of China has an increasing 
        footprint in the food supply chain in the United States, with 
        Smithfield Foods, owned by the WH Group of the People's 
        Republic of China, holding a major position in United States 
        pork processing and announcing in January 2026 its acquisition 
        of Nathan's Famous, an iconic brand of the United States.
            (6) When major processing capacity and widely recognized 
        brands in the United States move under the control of a foreign 
        parent company, the public deserves to know how that affects 
        competition, pricing power, and national security.

SEC. 302. DIVESTITURE PLANS FOR COVERED FOREIGN-CONTROLLED MEATPACKING 
              ENTERPRISES.

    (a) In General.--It shall be unlawful for any covered foreign-
controlled meatpacking enterprise to operate in interstate commerce in 
the United States.
    (b) Divestiture Required.--
            (1) In general.--Not later than 120 days after the date of 
        enactment of this Act, the Commission shall require each 
        covered foreign-controlled meatpacking enterprise violating 
        subsection (a) to carry out a divestiture plan under paragraph 
        (2).
            (2) Structure.--A divestiture plan of a covered foreign-
        controlled meatpacking enterprise under this paragraph shall--
                    (A) be developed by the Commission; and
                    (B) require the covered foreign-controlled 
                meatpacking enterprise to divest its United States 
                meatpacking and food processing operations, which may 
                require that such operations be--
                            (i) transferred to 1 or more new, 
                        independent entities headquartered, 
                        incorporated, and controlled by persons 
                        domiciled in the United States; or
                            (ii) sold to 1 or more entities, subject to 
                        conditions necessary to preserve and enhance 
                        competition and safeguard national security 
                        interests, including, as appropriate, in 
                        consultation with relevant national security 
                        agencies.
            (3) Standards.--In exercising its authority under paragraph 
        (1), the Commission shall--
                    (A) act in a manner consistent with the public 
                interest in promoting competition, protecting 
                consumers, producers, and workers, and ensuring a 
                resilient food supply, as described in section 602; and
                    (B) to the maximum extent practicable, structure 
                divestitures under this section so as to--
                            (i) avoid reconcentration of assets;
                            (ii) encourage ownership and control of 
                        divested assets by farmers' cooperatives, 
                        worker owned enterprises, and other small or 
                        mid sized businesses; and
                            (iii) prevent reacquisition of divested 
                        assets by firms whose market power contributed 
                        to the need for divestiture.
            (4) Consideration of corruption and unlawful conduct.--In 
        designing the divestiture plan under this paragraph, the 
        Commission may take into account prior admissions and findings 
        relating to corruption, bribery, and other unlawful conduct 
        used to obtain financing for United States acquisitions, 
        including settlements and judgments under the Foreign Corrupt 
        Practices Act of 1977 (15 U.S.C. 78dd-1 et seq.).
            (5) Extension.--With respect to a covered foreign-
        controlled meatpacker, the Commission may grant a single 
        extension of not more than 90 days of the date on which the 
        prohibition under subsection (a) would otherwise apply to the 
        covered foreign-controlled meatpacking enterprise if the 
        Commission certifies to Congress that--
                    (A) a path to executing a divestiture under this 
                subsection has been identified with respect to such 
                covered foreign-controlled meatpacking enterprise;
                    (B) evidence of significant progress toward 
                executing such divestiture has been produced with 
                respect to such covered foreign-controlled meatpacking 
                enterprise; and
                    (C) there are in place the relevant binding legal 
                agreements to enable execution of such divestiture 
                during the period of such extension.

SEC. 303. REVIEW OF OTHER FOREIGN-CONTROLLED MEATPACKING ENTERPRISES.

    (a) Study and Report.--Not later than 180 days after the date of 
enactment of this Act, the Commission shall complete a study of the 
business practices, financing, ownership structures, and competitive 
effects of all foreign-controlled entities with significant meatpacking 
and related operations in the United States, including those of 
entities engaged in beef or pork production and processing.
    (b) Consultation.--In conducting the study under subsection (a), 
the Commission shall consult with appropriate national security 
agencies, including the Department of Defense, the Department of 
Homeland Security, the Office of the Director of National Intelligence, 
the Department of Agriculture, the Department of Justice, and any other 
relevant agency as determined by the Commission.
    (c) Authority To Determine Need for Divestment.--
            (1) In general.--The Commission may determine, based on the 
        study and consultations under subsections (a) and (b), that 
        divestment, structural separation, or other remedial action is 
        needed with respect to such foreign-controlled entities to 
        protect competition, national security, or the resilience of 
        the United States food system.
            (2) Congressional review.--
                    (A) Submission.--Before the Commission may require 
                divestment, structural separation, or other remedial 
                action under paragraph (1), the Commission shall submit 
                to each House of Congress the determination under that 
                paragraph and Congress shall review the determination 
                pursuant to subparagraph (B).
                    (B) Review.--Congress may, by an Act of Congress, 
                block a determination submitted under subparagraph (A) 
                through the congressional disapproval procedure set 
                forth in section 802 of title 5, United States Code.
                    (C) Requirement.--Upon the expiration of the review 
                period under subparagraph (B), the Commission may 
                require the divestiture, structural separation, or 
                other remedial action determined under paragraph (1).
    (d) Report to Congress.--Not later than 120 days after the date of 
enactment of this Act, the Commission shall submit to Committee on 
Commerce, Science, and Transportation of the Senate, the Select 
Committee on Intelligence of the Senate, the Committee on the Judiciary 
of the Senate, the Committee on Energy and Commerce of the House of 
Representatives, the Permanent Select Committee on Intelligence of the 
House of Representatives, and the Committee on the Judiciary of the 
House of Representatives a report that includes a divestment decision 
with respect to each foreign-controlled meatpacking enterprise.

         TITLE IV--BRINGING PRICES DOWN FOR THE AMERICAN FAMILY

SEC. 401. FINDINGS.

    Congress finds the following:
            (1) Families across the United States face persistently 
        high prices for meat, which contribute significantly to overall 
        food costs and household financial strain.
            (2) Concentration and limited competition in meat supply 
        chains and retail markets can facilitate unfair and unjustly 
        discriminatory pricing practices, including price 
        discrimination that disadvantages certain retail grocers and 
        the communities they serve.
            (3) Unfair and unjustly discriminatory prices and price 
        discrimination for meat products can result in higher prices, 
        reduced availability, and fewer choices for consumers, 
        particularly in rural areas, low-income communities, and 
        communities already experiencing limited grocery access.
            (4) Section 406 of the Packers and Stockyards Act, 1921 (7 
        U.S.C. 227), confers authority on the Commission with respect 
        to the retail sale of meat, meat food products, and livestock 
        products in unmanufactured form. Under section 406 of the 
        Packers and Stockyards Act, 1921 (7 U.S.C. 227), the Commission 
        may exercise its authority, including its authority under the 
        Federal Trade Commission Act, to prevent unfair methods of 
        competition and unfair or deceptive acts or practices in or 
        affecting commerce in connection with such retail sales.
            (5) The authority extends to conduct that results in unfair 
        and unjustly discriminatory retail meat prices and to price 
        discrimination in meat, which drives prices higher for 
        independent, smaller, or neighborhood grocery stores, where 
        such conduct constitutes an unfair method of competition or an 
        unfair or deceptive act or practice.
            (6) Section 5 of the Federal Trade Commission Act (15 
        U.S.C. 45) declares unlawful unfair methods of competition and 
        unfair or deceptive acts or practices in or affecting commerce 
        and authorizes the Commission to prevent such conduct through 
        investigations, administrative proceedings, and judicial 
        enforcement, including with respect to retail and wholesale 
        sales of meat, meat food products, and livestock products in 
        unmanufactured form where such sales are in or affect commerce.
            (7) The Commission's authority under section 5 of the 
        Federal Trade Commission Act (15 U.S.C. 45), including as 
        informed by its policy statements and enforcement precedent, 
        provides an important tool to challenge unfair methods of 
        competition, coordinated conduct, exclusionary practices, and 
        unfair or deceptive acts or practices in retail and wholesale 
        meat markets that may drive up prices, restrict output, or 
        otherwise harm consumers, small and independent grocers, and 
        fair competition.
            (8) Congress intends that the Commission fully and 
        proactively utilize its authority under section 406 of the 
        Packers and Stockyards Act, 1921, its authority under Section 5 
        of the Federal Trade Commission Act (15 U.S.C. 45), and all 
        other applicable laws, to identify, prevent, and remedy unfair 
        and unjustly discriminatory retail and wholesale meat prices 
        and price discrimination that harms consumers, honest 
        businesses, and competition.
            (9) The authority of the Commission under section 6(b) of 
        the Federal Trade Commission Act (15 U.S.C. 46(b)) to require 
        reports and answers to specific questions from persons, 
        partnerships, and corporations enables the Commission to study 
        and report on market structure, pricing practices, and 
        competitive conditions in retail and wholesale meat markets, 
        thereby informing effective enforcement and policymaking.

SEC. 402. REPORT ON MAXIMIZING AUTHORITY UNDER SECTION 406 OF THE 
              PACKERS AND STOCKYARDS ACT, 1921, AND RELATED FEDERAL 
              TRADE COMMISSION AUTHORITIES.

    (a) Report Required.--Not later than 180 days after the date of 
enactment of this Act, the Commission shall submit to the congressional 
committees described in subsection (c) a report describing how the 
Commission is using and maximizing, and plans to further maximize--
            (1) its authorities under section 406 of the Packers and 
        Stockyards Act, 1921 (7 U.S.C. 227) and section 5 of the 
        Federal Trade Commission Act (15 U.S.C. 45) to address--
                    (A) unfair and unjustly discriminatory retail and 
                wholesale prices for meat, meat food products, and 
                livestock products in unmanufactured form; and
                    (B) price discrimination in meat, including beef 
                and pork, that results in higher prices or otherwise 
                less favorable terms for independent, smaller, or 
                neighborhood grocery stores; and
            (2) its authority under section 6(b) of the Federal Trade 
        Commission Act (15 U.S.C. 46(b)) to conduct studies and obtain 
        information, including compulsory process where appropriate, 
        regarding the structure, conduct, and performance of retail and 
        wholesale meat markets, and the pricing, contracting, and 
        merchandising practices of firms operating in those markets.
    (b) Contents.--The report required under subsection (a) shall 
include, at a minimum--
            (1) a description of the Commission's interpretation of its 
        authority under section 406 of the Packers and Stockyards Act, 
        1921 (7 U.S.C. 227), and section 5 of the Federal Trade 
        Commission Act (15 U.S.C. 45), as those authorities apply to 
        unfair and unjustly discriminatory retail and wholesale meat 
        prices and to price discrimination in meat affecting retail 
        grocers;
            (2) a description of any policies, guidance, rules, or 
        enforcement priorities the Commission has adopted, revised, or 
        is considering to better detect, deter, and remedy such conduct 
        using its authority under section 406 of the Packers and 
        Stockyards Act, 1921 (7 U.S.C. 227), section 5 of the Federal 
        Trade Commission Act (15 U.S.C. 45), and other applicable 
        statutes;
            (3) a summary of any investigations, enforcement actions, 
        or other proceedings, initiated or completed during the 180-day 
        period beginning on the date of enactment of this Act, that 
        involve alleged unfair and unjustly discriminatory retail or 
        wholesale meat prices or price discrimination in meat affecting 
        retail grocers, to the extent practicable and consistent with 
        the protection of confidential or law-enforcement-sensitive 
        information;
            (4) an assessment of how unfair and unjustly discriminatory 
        pricing, and price discrimination in meat affecting retail 
        grocers, may contribute to higher prices or reduced access to 
        meat products for consumers in particular geographic areas or 
        demographic groups;
            (5) a description of the Commission's coordination with the 
        Department of Agriculture, the Department of Justice, and any 
        other relevant Federal or State agencies with respect to unfair 
        and unjustly discriminatory retail and wholesale meat prices 
        and price discrimination affecting retail grocers;
            (6) any recommendations for additional statutory authority, 
        resources, or other measures that the Commission determines 
        would enhance its ability to address unfair and unjustly 
        discriminatory retail and wholesale meat prices and price 
        discrimination in meat that harms competition and consumers;
            (7) a description of how the Commission has used, or plans 
        to use, its authority under section 6(b) of the Federal Trade 
        Commission Act (15 U.S.C. 46(b)) to study and obtain 
        information regarding retail and wholesale meat pricing, fees, 
        discounts, allowances, and other terms or practices that may 
        result in unfair or unjustly discriminatory prices or price 
        discrimination affecting independent, smaller, or neighborhood 
        grocery stores; and
            (8) an identification of any studies initiated, ongoing, or 
        completed under section 6(b) of the Federal Trade Commission 
        Act (15 U.S.C. 46(b)) that relate to retail or wholesale meat 
        markets, food retailing, or related pricing and merchandising 
        practices, and a discussion of how the results of such studies 
        inform, or are expected to inform, the Commission's 
        enforcement, policy development, and coordination with other 
        Federal or State agencies with respect to unfair and unjustly 
        discriminatory retail or wholesale meat prices and price 
        discrimination.
    (c) Committees.--The congressional committees described in this 
subsection are the following:
            (1) The Committee on Commerce, Science, and Transportation 
        of the Senate.
            (2) The Committee on Agriculture, Nutrition, and Forestry 
        of the Senate.
            (3) The Committee on the Judiciary of the Senate.
            (4) The Committee on Energy and Commerce of the House of 
        Representatives.
            (5) The Committee on Agriculture of the House of 
        Representatives.
            (6) The Committee on the Judiciary of the House of 
        Representatives.

          TITLE V--FUNDING THE DEVELOPMENT OF NEW COMPETITORS

SEC. 501. FUNDING FOR FARMER'S COOPERATIVES AND SMALL BUSINESS 
              CONCERNS.

    (a) Definitions.--In this section:
            (1) Administrator.--The term ``Administrator'' means the 
        Administrator of the Small Business Administration.
            (2) Eligible entity.--The term ``eligible entity'' means--
                    (A) a farmers' cooperative; and
                    (B) a small business concern (within the meaning of 
                section 3 of the Small Business Act (15 U.S.C. 632)).
    (b) Authority.--The Administrator may provide financial assistance, 
loan guarantees, technical assistance, and other assistance to eligible 
entities for the purpose of acquiring, operating, or expanding 
meatpacking plants or facilities divested pursuant to this Act.
    (c) Applications.--An eligible entity seeking assistance under 
subsection (b) shall submit to the Administrator an application at such 
time, in such manner, and containing such information as the 
Administrator may require.
    (d) Preference.--In evaluating applications submitted under 
subsection (c), the Administrator shall, to the extent consistent with 
sound underwriting and program integrity, give preference to eligible 
entities proposing to use such assistance for locally or regionally 
focused operations that will enhance competition for livestock and 
benefit producers and consumers.
    (e) Authorization of Appropriations.--There are authorized to be 
appropriated to the Administrator such sums as are necessary to carry 
out this section.

             TITLE VI--RULEMAKING AND ENFORCEMENT AUTHORITY

SEC. 601. ENFORCEMENT AUTHORITY.

    (a) Enforcement.--
            (1) Failure to divest as required.--
                    (A) In general.--A failure to divest pursuant to 
                this Act shall be deemed to be an unlawful method of 
                competition in violation of section 5 of the Federal 
                Trade Commission Act (15 U.S.C. 45). The Commission 
                shall enforce divestitures under this Act in the same 
                manner, by the same means, and with the same 
                jurisdiction, powers, and duties as though all 
                applicable terms and provisions of the Federal Trade 
                Commission Act (15 U.S.C. 41 et seq.) were incorporated 
                into and made a part of this section.
                    (B) Persons subject to the packers and stockyards 
                act.--Notwithstanding section 5(a)(2) of the Federal 
                Trade Commission Act (15 U.S.C. 45(a)(2)) or any 
                jurisdictional limitation of the Commission, the 
                Commission shall also enforce this Act, in the same 
                manner provided in subparagraph (A), with respect to 
                persons, partnerships, or corporations insofar as they 
                are subject to the Packers and Stockyards Act, 1921 (7 
                U.S.C. 181 et seq.).
                    (C) Penalties for failure to divest.--
                            (i) In general.--The Commission shall 
                        impose a civil penalty equal to 10 percent of 
                        the revenue of the violator during the period 
                        of violation for any failure to divest pursuant 
                        to this Act.
                            (ii) Enhanced penalty.--The Commission 
                        shall impose a civil penalty equal to 3 times 
                        the amount of any damages under section 5 of 
                        the Federal Trade Commission Act (15 U.S.C. 45) 
                        for any knowing violation of this Act.
            (2) Civil action.--
                    (A) In general.--The Commission is authorized to 
                bring a civil action in an appropriate district court 
                of the United States to enforce any divestment plan, 
                order, or condition imposed under this Act, including 
                to enjoin violations, compel compliance, or obtain 
                other appropriate relief.
                    (B) Remedies.--In an action under subparagraph (A), 
                the court may grant any appropriate equitable relief, 
                including specific performance, modification of 
                divestiture terms (only on motion of the Commission), 
                appointment of a monitor, disgorgement or restitution, 
                or such other relief as the interests of justice and 
                competition may require.
    (b) Use of Penalty Funds.--The Commission shall use any civil 
penalties or other amounts recovered under this Act to promote 
competition, including by funding the development of new competitors 
under title V.
    (c) Requests for Information and Assistance.--The Department of 
Agriculture shall comply with all requests for information and expert 
assistance made by the Commission in carrying out this Act.

SEC. 602. RULEMAKING.

    (a) Objectives.--In promulgating all rules under this Act relating 
to required divestitures and divestment plans, the Commission shall aim 
to--
            (1) discourage monopolistic practices;
            (2) strengthen and preserve the competitive position of 
        small business concerns;
            (3) foster the development of new independent enterprises; 
        and
            (4) preference farmers' cooperatives and small businesses 
        in divestment plans.
    (b) Requirements.--
            (1) In general.--Not later than 90 days after the date of 
        enactment of this Act, the Commission shall promulgate, in 
        accordance with section 553 of title 5, United States Code, 
        such rules and regulations as are necessary to carry out this 
        Act, including rules relating to--
                    (A) definitions of markets for cattle slaughter and 
                beef processing in the United States;
                    (B) standards and requirements for divestitures 
                under this Act; and
                    (C) in consultation with national security 
                agencies, an identification of all covered foreign-
                controlled meatpacking enterprises.
            (2) Failure to promulgate regulations.--If no regulations 
        have been promulgated by the Commission on or before the date 
        described in this subsection, the requirements of this section 
        shall still apply.
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