HCS SB 2 -- LIVESTOCK MARKETING

SPONSOR:  Cauthorn (Shoemyer)

COMMITTEE ACTION:  Voted "do pass" by the Committee on Price
Discrimination by a vote of 6 to 4.

This substitute repeals the right of sellers of livestock who
are discriminated against by packers to receive treble damages,
costs, and reasonable attorney fees.  It also repeals the right
of any person injured by a violation of the livestock marketing
law to bring suit under Chapter 407, RSMo.

Provisions requiring a packer purchasing livestock for slaughter
not to discriminate in prices paid to sellers of that livestock
are replaced with provisions that make it unlawful for a packer
to:

(1)  Engage in any unfair, unjustly discriminatory, or deceptive
practice;

(2)  Give any undue or unreasonable preference or advantage to
any person or location in any respect whatsoever;

(3)  Sell or transfer to, for, or from any other packer with the
effect of apportioning the supply between the packers,
restraining trade, or creating a monopoly;

(4)  Sell or transfer any article with the effect of
manipulating or controlling prices;

(5)  Engage in any business practice for the purpose of
manipulating or controlling prices, creating a monopoly, or
restraining commerce; or

(6)  Conspire with any other person to apportion territory for
carrying on business, apportion purchases, or control prices.

The provisions of the substitute are to be enforced by the
Attorney General in a manner consistent with the Packers and
Stockyards Act (7 U.S.C.A. section 181).

The current expiration date of December 31, 2002, is extended to
December 31, 2003, as it relates to the sale of live cattle,
swine, and sheep.

The substitute has an emergency clause.

FISCAL NOTE:  No impact on state funds.

PROPONENTS:  Supporters say that Missouri's price discrimination
law has had the effect of limiting producers selling options,
thereby, placing them at a competitive disadvantage as opposed
to producers in other states.  They support the bill without the
sunset extension included in the House Committee Substitute.

Testifying for the bill were Senator Cauthorn; Gary Mahnkon,
cattle producer; Paul Gibbs, Missouri Cattlemens Association,
Missouri Farm Bureau; Ron Hardecke, Missouri Farm Bureau; Ray
Cundo, Franklin County Farm Bureau; Missouri Agricultural
Industries; Bruce Gerdes, Hampton Feedlot; John Perry, Hampton
Feedlot; Missouri League of Financial Institutions; Mike
Scherer, Farm Credit Services of Eastern Missouri; Randy Britt;
and Kim Ricketts.

OPPONENTS:  Those who oppose the bill say that if packers are in
violation of the Federal Packers and Stockyard Act by paying
less to Missouri producers, producers should be informing the
Missouri and United States attorneys general of their financial
losses.  The law currently in effect in Missouri should not be
repealed in favor of a much softer Packers and Stockyard Act.

Testifying against the bill were Jim Foster, Hog and Cattle
Producer; and Barbara Ross, Catholic Rural Life, Diocese of
Jefferson City.

Roland Tackett, Legislative Analyst

Missouri House of Representatives
Last Updated October 19, 2001 at 4:30 pm