HCS HB 1602 -- LIVESTOCK SALES REGULATIONS
COMMITTEE ACTION: Voted "do pass" by the Committee on
Agriculture by a vote of 16 to 6.
This substitute prohibits any discriminatory action on the part
of a packer or stockyard, including any practice creating a
monopoly or apportioning distribution and sales of meats or
livestock. Poultry contracts with growers must conform to the
nondiscrimination standards provided in the substitute.
Packers, live poultry dealers, market agencies, and dealers are
required to register with the Department of Agriculture.
Registration is to include the name, address, type of business,
and the type of bond or bond equivalent, if any, maintained
pursuant to the Packer and Stockyards Act. Any bond or bond
equivalent accepted by the United States Department of
Agriculture pursuant to the Packers and Stockyards Act will
fulfill the state's bonding requirement.
A packer with average annual purchases in excess of $500,000 and
a live poultry dealer with average annual sales of live poultry
in excess of $100,000 will have all inventories held in trust
until all unpaid cash sellers have been paid.
All stockyards and livestock markets are to file with the
Department of Agriculture and post in a conspicuous place at the
place of business a schedule of rates and charges. Any changes
in rates and charges for stockyard services filed with and
accepted by the United States Department of Agriculture are to
be accepted by the department.
Every market agency engaged in selling livestock on a commission
or agency basis is required to establish a custodial account for
shippers' proceeds, or some similar identifying designation, to
disclose that the depositor is acting as a fiduciary and that
the funds in the account are trust funds.
Every packer, live poultry dealer, stockyard owner, market
agency, and dealer is to keep accounts and records that fully
and accurately disclose all transaction involved in their
business which are subject to the provisions of the substitute
for at least 2 years.
Employees of the Department of Agriculture are not to divulge
any information regarding the businesses subject to the
provisions of the substitute.
Every packer, market agency, or dealer purchasing livestock is
required before the close of the next business day following the
purchase of livestock, to deliver to the seller the full amount
of the purchase price, except that parties to the purchase and
sale of livestock may agree in writing, before the purchase or
sale, to effect payment in a manner other than that required by
Every live poultry dealer obtaining live poultry by purchase in
a cash sale is to make payment for such poultry before the close
of the next business day. Every poultry dealer obtaining live
poultry under a poultry growing arrangement before the close of
the 15 days following the week in which the poultry was
slaughtered is to make full payment for such poultry.
Whenever the Department of Agriculture has reason to believe
that any person subject to the provisions of the substitute is
unable to pay to sellers what is owed, is operating while
insolvent, does not have a bond or bond equivalent, or is
operating in violation of the substitute in a manner that may
cause irreparable damage to another person and it would be in
the public interest to enjoin such person from doing business,
the Department of Agriculture is to notify the Missouri Attorney
General, who may apply to the circuit court for an injunction or
If any person is found to be in violation of the provisions of
the substitute, such person is liable to the person or persons
damaged for the full amount of damages sustained. The liability
may be enforced by suit in the circuit court where the venue is
proper; however, the suit in no way abridges or alters the
remedies now existing at common law or by statute but are in
addition to such remedies.
The Director of the Missouri Department of Agriculture is to
cooperate with the United States Department of Agriculture to
the greatest extent possible to avoid duplication of tasks
regarding the provisions of the substitute.
FISCAL NOTE: Estimated Net Cost to General Revenue Fund of $0
to $201,890 in FY 2001, $0 to $195,343 in FY 2002, and $0 to
$200,317 in FY 2003.
PROPONENTS: Supporters say that the bill would aid livestock
producers by providing timely resolution of nonpayment and
unfair practices by packers and livestock markets. Livestock
producers throughout Missouri have testified before the Interim
Committee on Agriculture that they want the Packers and
Stockyards Act enforced.
Testifying for the bill were Representatives Leake and Myers;
Missouri Farmers Union; and Farm Alliance of Rural Missouri.
OPPONENTS: Those who oppose the bill say that the bill would
require additional paper work and is unnecessary because it
duplicates current federal law.
Testifying against the bill were Missouri Livestock Marketing
Association; and Poultry Federation.
Roland Tackett, Legislative Analyst
HB 1602 -- Livestock Sale Regulation
Co-Sponsors: Leake, Gaw, Wiggins, Clayton, Koller, Williams
(159), Myers, Overschmidt
Any discriminatory action on the part of a packer or stockyard
is prohibited, including any practice creating a monopoly or
apportioning distribution and sales of meats or livestock.
Poultry contracts with growers must conform to the non--
discrimination standards provided in the bill.
A packer with average annual purchases in excess of $500,000
will have all inventories held in trust until all unpaid cash
sellers have been paid.
Stockyards are required to register with the Director of the
Department of Agriculture. Whenever, after due notice and
hearing, the director finds a registrant to be insolvent or in
violation of the provisions of this act, the director may
suspend such registration for a reasonable period. The director
may require the registrant to cease and desist from purchasing
livestock while insolvent.
Within 60 days of registration with the Department of
Agriculture, a stockyard is to submit to the department and
provide to the public schedules showing all rates and charges
for the stockyard services. All rates or charges made for any
stockyard service are to be just, reasonable, and
If any person subject to the provisions of this act violates any
of the provisions of this act or any order issued by the
director relating to the purchase, sale, or handling of
livestock, the purchase or sale of poultry, or relating to any
poultry-growing arrangement, the person is liable to the injured
party for the full amount of damages sustained. Such liability
may be enforced by the Director of the Department of Agriculture
or by suit in any court. This in no way abridges any remedy now
existing in common law or by statute.
Whenever any investigation pursuant to the provisions of this
act causes any undue or unreasonable advantage, prejudice, or
preference between persons or locations in intrastate commerce,
interstate commerce, or foreign commerce, the director is to
prescribe the rate, change, regulation, or practice thereafter
to be observed. The director, after notice and hearing, may
order any person to cease and desist from continuing such
The Attorney General is to enforce the provisions of this act.
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Last Updated October 5, 2000 at 11:33 am