HouseH.R. 10506119th Congress
Packers and Stockyards Improvements Act
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[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 10506 Introduced in House (IH)]
<DOC>
119th CONGRESS
2d Session
H. R. 10506
To confer in the Secretary of Agriculture the authority to use civil
investigative demands for enforcement of the Packers and Stockyards
Act, 1921, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
September 17, 2026
Ms. Scanlon introduced the following bill; which was referred to the
Committee on Agriculture
_______________________________________________________________________
A BILL
To confer in the Secretary of Agriculture the authority to use civil
investigative demands for enforcement of the Packers and Stockyards
Act, 1921, 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 ``Packers and Stockyards Improvements
Act''.
SEC. 2. INVESTIGATION OF LIVE POULTRY DEALERS.
(a) Administrative Enforcement Authority Over Live Poultry
Dealers.--Sections 203, 204, and 205 of the Packers and Stockyards Act,
1921 (7 U.S.C. 193, 194, and 195), are each amended by inserting ``,
live poultry dealer,'' after ``packer'' each place it appears.
(b) Repeals.--Sections 411, 412, and 413 of the Packers and
Stockyards Act, 1921 (7 U.S.C. 228b-2, 228b-3, and 228b-4) are
repealed.
(c) Conforming Amendments.--Sections 414 and 415 of the Packers and
Stockyards Act, 1921 (7 U.S.C. 228c and 228d) are redesignated as
sections 411 and 412, respectively.
SEC. 3. SHARING OF LIVESTOCK DATA.
Section 251(b)(2) of the Agricultural Marketing Act of 1946 (7
U.S.C. 1636) is amended--
(1) by redesignating subparagraphs (B) and (C) as
subparagraphs (C) and (D), respectively; and
(2) by inserting after subparagraph (A), the following:
``(B) on a regular and continual basis, to--
``(i) any person employed by the Department
of Agriculture who is charged with the duty of
enforcing or carrying into effect any provision
of the Packers and Stockyards Act, 1921 (7
U.S.C. 201 et seq.), for the purpose of
monitoring violations of such Act; and
``(ii) any person employed by the Commodity
Futures Trading Commission who is charged with
the duty of enforcing or carrying into effect
any provision of the Commodity Exchange Act (7
U.S.C. 1 et seq.), for the purpose of
monitoring violations of such Act.''.
SEC. 4. CIVIL INVESTIGATIVE DEMANDS.
Title IV of the Packers and Stockyards Act, 1921 (7 U.S.C. 221 et
seq.) is amended by inserting before section 417 the following:
``SEC. 413. CIVIL INVESTIGATIVE DEMANDS.
``(a) Demands.--
``(1) In general.--Whenever the Secretary has reason to
believe that any person may be in possession, custody, or
control of any documentary material or tangible things, or may
have any information relevant to an unlawful practice under
section 202, the Secretary may, before the institution of any
proceedings under section 203(a), issue in writing and cause to
be served upon such person, a civil investigative demand
requiring such person to--
``(A) produce such documentary material for
inspection and copying or reproduction;
``(B) submit such tangible things;
``(C) file written reports or answers to questions;
``(D) give oral testimony concerning documentary
material or other information; or
``(E) furnish any combination of such material,
tangible things, answers, or testimony.
``(2) Requirements.--Each civil investigative demand shall
state the nature of the conduct constituting the alleged
violation which is under investigation and the provision of law
applicable to such violation.
``(3) Production of documents.--Each civil investigative
demand for the production of documentary material shall--
``(A) describe each class of documentary material
to be produced under the demand with such definiteness
and certainty as to permit such material to be fairly
identified;
``(B) prescribe a return date or dates which will
provide a reasonable period of time within which the
material so demanded may be assembled and made
available for inspection and copying or reproduction;
and
``(C) identify the custodian to whom such material
shall be made available.
``(4) Production of things.--Each civil investigative
demand for the submission of tangible things shall--
``(A) describe each class of tangible things to be
submitted under the demand with such definiteness and
certainty as to permit such things to be fairly
identified;
``(B) prescribe a return date or dates which will
provide a reasonable period of time within which the
things so demanded may be assembled and submitted; and
``(C) identify the custodian to whom such things
shall be submitted.
``(5) Demand for written reports or answers.--Each civil
investigative demand for written reports or answers to
questions shall--
``(A) propound with definiteness and certainty the
reports to be produced or the questions to be answered;
``(B) prescribe a date or dates at which time
written reports or answers to questions shall be
submitted; and
``(C) identify the custodian to whom such reports
or answers shall be submitted.
``(6) Oral testimony.--Each civil investigative demand for
the giving of oral testimony shall--
``(A) prescribe a date, time, and place at which
oral testimony shall be commenced; and
``(B) identify a packers and stockyards
investigator who shall conduct the investigation and
the custodian to whom the transcript of such
investigation shall be submitted.
``(7) Service.--Any civil investigative demand issued, and
any enforcement petition filed, under this section may be
served--
``(A) by any packers and stockyards investigator at
any place within the territorial jurisdiction of any
court of the United States; and
``(B) upon any person who is not found within the
territorial jurisdiction of any court of the United
States--
``(i) in such manner as the Federal Rules
of Civil Procedure prescribe for service in a
foreign nation; and
``(ii) to the extent that courts of the
United States have authority to assert
jurisdiction over such person, consistent with
due process, the United States District Court
for the District of Columbia shall have the
same jurisdiction to take any action respecting
compliance with this section by such person.
``(8) Method of service.--Service of any civil
investigative demand or any enforcement petition filed under
this section may be made upon a person, including any natural
person or any legal entity, by--
``(A) delivering a duly executed copy of such
demand or petition to the individual or to any partner,
executive officer, managing agent, or general agent of
such person, or to any agent of such person authorized
by appointment or by law to receive service of process
on behalf of such person;
``(B) delivering a duly executed copy of such
demand or petition to the principal office or place of
business of the person to be served; or
``(C) depositing a duly executed copy in the United
States mails, by registered or certified mail, return
receipt requested, duly addressed to such person at the
principal office or place of business of such person.
``(9) Proof of service.--
``(A) In general.--A verified return by the
individual serving any civil investigative demand or
any enforcement petition filed under this section
setting forth the manner of such service shall be proof
of such service.
``(B) Return receipts.--In the case of service by
registered or certified mail, such return shall be
accompanied by the return post office receipt of
delivery of such demand or enforcement petition.
``(10) Production of documentary material.--The production
of documentary material in response to a civil investigative
demand shall be made under a sworn certificate, in such form as
the demand designates by the person, if a natural person, to
whom the demand is directed or, if not a natural person, by any
person having knowledge of the facts and circumstances relating
to such production, to the effect that all of the documentary
material required by the demand and in the possession, custody,
or control of the person to whom the demand is directed has
been produced and made available to the custodian.
``(11) Submission of tangible things.--The submission of
tangible things in response to a civil investigative demand
shall be made under a sworn certificate, in such form as the
demand designates by the person, if a natural person, to whom
the demand is directed or, if not a natural person, by any
person having knowledge of the facts and circumstances relating
to such production, to the effect that all of the tangible
things required by the demand and in the possession, custody,
or control of the person to whom the demand is directed have
been submitted to the custodian.
``(12) Separate answers.--Each reporting requirement or
question in a civil investigative demand shall be answered
separately and fully in writing under oath, unless such
requirement is objected to. Such an objection shall be stated
in lieu of an answer, and it shall be submitted under a sworn
certificate, in such form as the demand designates--
``(A) by the person, if a natural person, to whom
the demand is directed; or
``(B) if not a natural person, by any person
responsible for answering each reporting requirement or
question to the effect that all information required by
the demand and in the possession, custody, control, or
knowledge of the person to whom the demand is directed
has been submitted.
``(13) Testimony.--
``(A) In general.--
``(i) Oath and recordation.--The
examination of any person pursuant to a demand
for oral testimony served under this subsection
shall be taken before a packers and stockyards
investigator authorized to administer oaths and
affirmations by the laws of the United States
or of the place at which the examination is
held. The officer before whom oral testimony is
to be taken shall put the witness on oath or
affirmation and shall personally, or by any
individual acting under the direction of and in
the presence of the officer, record the
testimony of the witness.
``(ii) Transcription.--The testimony shall
be taken stenographically and transcribed.
``(iii) Transmission to custodian.--After
the testimony is fully transcribed, the officer
before whom the testimony is taken shall
promptly transmit a copy of the transcript of
the testimony to the custodian.
``(B) Parties present.--Any packers and stockyards
investigator before whom oral testimony is to be taken
shall exclude from the place where the testimony is to
be taken all other persons, except the person giving
the testimony, the attorney for that person, the
officer before whom the testimony is to be taken, an
investigator or representative of an agency with which
the Secretary in engaged in a joint investigation, and
any stenographer taking such testimony.
``(C) Location.--The oral testimony of any person
taken pursuant to a civil investigative demand shall be
taken in the judicial district of the United States in
which such person resides, is found, or transacts
business, or in such other place as may be agreed upon
by the packers and stockyards investigator before whom
the oral testimony of such person is to be taken.
``(D) Attorney representation.--
``(i) In general.--Any person compelled to
appear under a civil investigative demand for
oral testimony pursuant to this section may be
accompanied, represented, and advised by an
attorney.
``(ii) Authority.--The attorney may advise
a person described in clause (i), in
confidence, either upon the request of such
person or upon the initiative of the attorney,
with respect to any question asked of such
person.
``(iii) Objections.--A person described in
clause (i), or the attorney for that person,
may object on the record to any question, in
whole or in part, and such person shall briefly
state for the record the reason for the
objection. An objection may properly be made,
received, and entered upon the record when it
is claimed that such person is entitled to
refuse to answer the question on grounds of any
constitutional or other legal right or
privilege, including the privilege against
self-incrimination, but such person shall not
otherwise object to or refuse to answer any
question, and such person or attorney shall not
otherwise interrupt the oral examination.
``(iv) Refusal to answer.--If a person
described in clause (i) refuses to answer any
question--
``(I) the Secretary may petition
the district court of the United States
pursuant to this section for an order
compelling such person to answer such
question; and
``(II) if the refusal is on grounds
of the privilege against self-
incrimination, the testimony of such
person may be compelled in accordance
with the provisions of section 6004 of
title 18, United States Code.
``(E) Transcripts.--For the purposes of this
subsection--
``(i) after the testimony of any witness is
fully transcribed, the packers and stockyards
investigator shall afford the witness (who may
be accompanied by an attorney) a reasonable
opportunity to examine the transcript;
``(ii) the transcript shall be read to or
by the witness, unless such examination and
reading are waived by the witness;
``(iii) any changes in form or substance
which the witness desires to make shall be
entered and identified upon the transcript by
the packers and stockyards investigator, with a
statement of the reasons given by the witness
for making such changes;
``(iv) the transcript shall be signed by
the witness, unless the witness in writing
waives the signing, is ill, cannot be found, or
refuses to sign; and
``(v) if the transcript is not signed by
the witness during the 30-day period following
the date on which the witness is first afforded
a reasonable opportunity to examine the
transcript, the packers and stockyards
investigator shall sign the transcript and
state on the record the fact of the waiver,
illness, absence of the witness, or the refusal
to sign, together with any reasons given for
the failure to sign.
``(F) Certification by investigator.--The packers
and stockyards investigator shall certify on the
transcript that the witness was duly sworn by him or
her and that the transcript is a true record of the
testimony given by the witness, and the packers and
stockyards investigator shall promptly deliver the
transcript or send it by registered or certified mail
to the custodian.
``(G) Copy of transcript.--The packers and
stockyards investigator shall furnish a copy of the
transcript (upon payment of reasonable charges for the
transcript) to the witness only, except that the
Secretary may for good cause limit such witness to
inspection of the official transcript of his testimony.
``(H) Witness fees.--Any witness appearing for the
taking of oral testimony pursuant to a civil
investigative demand shall be entitled to the same fees
and mileage which are paid to witnesses in the district
courts of the United States.
``(b) Confidential Treatment of Demand Material.--
``(1) In general.--Documentary materials and tangible
things received as a result of a civil investigative demand
shall be subject to requirements and procedures regarding
confidentiality, in accordance with rules established by the
Secretary.
``(2) Disclosure to congress.--No rule established by the
Secretary regarding the confidentiality of materials submitted
to, or otherwise obtained by, the Secretary shall, pursuant to
a civil investigative demand under this section, be intended to
prevent disclosure to either House of Congress or to an
appropriate committee of the Congress, except that the
Secretary is permitted to adopt rules allowing prior notice to
any party that owns or otherwise provided the material to the
Secretary and had designated such material as confidential.
``(c) Petition for Enforcement.--
``(1) In general.--Whenever any person fails to comply with
any civil investigative demand duly served upon such person
under this section, or whenever satisfactory copying or
reproduction of material requested pursuant to the demand
cannot be accomplished and such person refuses to surrender
such material, the Secretary, through such officers or
attorneys as the Secretary may designate, may file, in the
district court of the United States for any judicial district
in which such person resides, is found, or transacts business,
and serve upon such person, a petition for an order of such
court for the enforcement of this section.
``(2) Service of process.--All process of any court to
which application may be made as provided in this subsection
may be served in any judicial district.
``(d) Petition for Order Modifying or Setting Aside Demand.--
``(1) In general.--Any person served in a civil
investigative demand under subsection (a) may, during the
period described in paragraph (2), file with the Secretary a
petition for an order by the Secretary modifying or setting
aside the demand.
``(2) Period described.--A petition under paragraph (1)
shall be made--
``(A) not later than 20 days after the service of
any civil investigative demand upon any person under
subsection (a), or at any time before the return date
specified in the demand, whichever period is shorter;
or
``(B) in such period exceeding 20 days after
service or in excess of such return date as may be
prescribed in writing, subsequent to service, by any
packers and stockyards investigator named in the
demand.
``(3) Compliance during pendency.--The time permitted for
compliance with the demand in whole or in part, as determined
proper and ordered by the Secretary, shall not run during the
pendency of a petition under paragraph (1) by the Secretary,
except that such person shall comply with any portions of the
demand not sought to be modified or set aside.
``(4) Specific grounds.--A petition under paragraph (1)
shall specify each ground upon which the petitioner relies in
seeking relief, and may be based upon any failure of the demand
to comply with the provisions of this section, or upon any
constitutional or other legal right or privilege of such
person.
``(e) Custodial Control.--At any time during which any custodian is
in custody or control of any documentary material, tangible things,
reports, answers to questions, or transcripts of oral testimony given
by any person in compliance with any civil investigative demand, such
person may file, in the district court of the United States for the
judicial district within which the office of such custodian is
situated, and serve upon such custodian, a petition for an order of
such court requiring the performance by such custodian of any duty
imposed upon such custodian by this section or rule promulgated by the
Secretary.
``(f) Jurisdiction of Court.--
``(1) In general.--Whenever any petition is filed in any
district court of the United States under this section, such
court shall have jurisdiction to hear and determine the matter
so presented, and to enter such order or orders as may be
required to carry out the provisions of this section.
``(2) Appeal.--Any final order entered as described in
paragraph (1) shall be subject to appeal pursuant to section
1291 of title 28.
``(g) Definitions.--In this section:
``(1) Civil investigative demand.--The term `civil
investigative demand' means any demand issued under subsection
(a).
``(2) Custodian.--The term `custodian' means the custodian
or any deputy custodian designated by the Secretary.
``(3) Documentary material.--The term `documentary
material' includes the original or any copy of any book,
record, report, memorandum, paper, communication, tabulation,
chart, or other document or media file.
``(4) Packers and stockyards investigator.--The term
`packers and stockyards investigator' means any attorney or
investigator employed by the Department of Agriculture who is
charged with the duty of enforcing or carrying into effect any
provision of this chapter, or any officer or employee of the
United States acting under the direction and supervision of
such attorney or investigator in connection with a packers and
stockyards investigation.
``(5) Violation.--The term `violation' means any act or
omission that, if proved, would constitute a violation of any
provision of this chapter.
``SEC. 414. WHISTLEBLOWER PROTECTIONS.
``(a) Whistleblower Protections for Employees, Contractors,
Subcontractors, and Agents.--
``(1) In general.--No covered entity may discharge, demote,
intimidate, restrain, coerce, blacklist, harass, or in any
other manner retaliate, discriminate, or take adverse action
against a covered individual because of any lawful act done by
the covered individual--
``(A) to provide or cause to be provided to the
Federal Government, an attorney general of a State, or
a person with supervisory authority over the covered
individual, or such other person working for the
employer who has the authority to investigate,
discover, or terminate misconduct, information relating
to any violation of, or any act or omission the covered
individual reasonably believes to be a violation of, a
provision of this chapter; or
``(B) to cause to be filed, testify in, participate
in, or otherwise assist a Federal Government
investigation or a Federal Government proceeding filed
or about to be filed (with any knowledge of the
employer) or any cause of action relating to any
violation of, or any act or omission the covered
individual reasonably believes to be a violation of, a
provision of this chapter.
``(2) Limitation on protections.--Paragraph (1) shall not
apply to any covered individual if--
``(A) the covered individual planned and initiated
a violation or attempted violation of a provision of
this chapter;
``(B) the covered individual planned and initiated
a violation or attempted violation of another criminal
law in conjunction with a violation or attempted
violation of a provision of this chapter; or
``(C) the covered individual planned and initiated
an obstruction or attempted obstruction of an
investigation by the Department of Agriculture of a
violation of a provision of this chapter.
``(3) Definitions.--In this section:
``(A) Covered individual.--The term `covered
individual' means an employee, contractor,
subcontractor, or agent of an employer.
``(B) Covered entity.--The term `covered entity'
means a person, or any officer, employee, contractor,
subcontractor, or agent of such person.
``(C) Federal government.--The term `Federal
Government' means--
``(i) a Federal regulatory or law
enforcement agency; or
``(ii) any Member of Congress or committee
of Congress.
``(b) Enforcement Action.--
``(1) In general.--A covered individual who alleges
discharge or other discrimination by any covered entity in
violation of subsection (a) may seek relief under subsection
(c) by--
``(A) filing a complaint with the Secretary of
Labor; or
``(B) if the Secretary of Labor has not issued a
final decision after the day that is 180 days after the
date on which the complaint was filed, and such delay
is not due to the bad faith of the claimant, bringing
an action in the appropriate district court of the
United States.
``(2) Procedure.--
``(A) In general.--The Secretary of Labor shall
establish rules and procedures to govern complaints
filed under paragraph (1)(A) that are similar to the
rules and procedures set forth in section 42121(b) of
title 49, United States Code (as in effect on the date
of enactment of this section).
``(B) Requirement.--Notification related to a
complaint filed under paragraph (1)(A) shall be made to
any individual named in the complaint and to the
covered entity.
``(C) Burdens of proof.--An action brought under
paragraph (1)(B) shall be governed by the legal burdens
of proof described in section 42121(b) of title 49,
United States Code.
``(D) Statute of limitations.--A complaint under
paragraph (1)(A) shall be filed with the Secretary of
Labor not later than 180 days after the date on which
the violation occurs.
``(E) Civil actions to enforce.--If a person fails
to comply with an order or preliminary order issued by
the Secretary of Labor pursuant to the procedures
established under subparagraph (A), the Secretary of
Labor or the person on whose behalf the order was
issued may bring a civil action to enforce the order in
the district court of the United States for the
judicial district in which the violation occurred.
``(c) Remedies.--
``(1) In general.--A covered individual prevailing in any
action under subsection (b)(1) shall be entitled to all relief
necessary to make the covered individual whole, including--
``(A) reinstatement with the same seniority status
that the covered individual would have had, but for the
discrimination, retaliation, or adverse action;
``(B) the amount of back pay or lost income, with
interest; and
``(C) compensation for any special damages
sustained as a result of the retaliation,
discrimination, or adverse action, including litigation
costs, expert witness fees, and reasonable attorney's
fees.
``(2) Punitive damages.--Relief in any action under
subsection (b)(1) may include punitive damages in an amount not
to exceed $400,000.
``(d) Rights Retained by Whistleblowers.--Nothing in this section
shall be determined to diminish the rights, privileges, or remedies of
any covered individual under any Federal or State law, or under any
collective bargaining agreement.''.
SEC. 5. UNFAIR PRACTICES IN LIVESTOCK, POULTRY, AND MEAT MARKETS.
Subtitle A of title II of the Packers and Stockyards Act, 1921 (7
U.S.C. 191 et seq.) is amended by inserting after section 202 (7 U.S.C.
192) the following:
``SEC. 202A.(A) FOR PURPOSES OF SECTION 202(A), THE TERM `UNFAIR
PRACTICE' INCLUDES ANY ACT IN WHICH A PACKER, SWINE
CONTRACTOR, OR LIVE POULTRY DEALER IS ENGAGED THAT--
``(1) is a collusive, coercive, predatory, restrictive,
deceitful, or exclusionary method of competition that may
negatively affect competitive conditions; or
``(2) causes or is likely to cause substantial injury to
one or more market participants, which--
``(A) the participant or participants cannot
reasonably avoid; and
``(B) the packer, swine contractor, or live poultry
dealer cannot justify by establishing countervailing
benefits to the market participant or participants or
to competition in the market that outweighs the
substantial injury or likelihood of substantial injury.
``(b) For purposes of subsection (a)(2)(A), an injury shall not be
treated as reasonably avoidable--
``(1) solely because the act referred to in such subsection
has been disclosed to market participants by the packer, swine
contractor, or live poultry dealer engaging in such act; and
``(2) if to avoid such an injury, a market participant
would be required to take unreasonable steps, such as exiting
the market or making unreasonable additional investments or
efforts.
``(c) For purposes of section 202(a), the following acts shall be
considered to be unfair practices:
``(1) A live poultry dealer utilizing a comparison of
poultry growers to reduce any rate of compensation under the
contract.
``(2) A live poultry dealer operating a comparison of
poultry growers that results in excessive variability in
compensation to the grower.
``(3) A packer utilizing a price term in a livestock or
meat contract that is based on other transactions of livestock
or meat, where the price term is unreasonably variable,
including owing to insufficient specificity regarding the type
or quality of the livestock or meat in the other transactions
on which the price term is based or to insufficient
transactions on which the price is based.
``(4) A packer requiring a producer of livestock to
exclusively or near exclusively transact with a packer, unless
the producer has an option to trade a sufficient amount of the
livestock to be procured under a contract through a livestock
exchange in which the packer is a participant among other
packers such that the exchange will be reasonably competitive
in price discovery.
``(5) A packer failing to fully compensate producers of
livestock for any delay in pickup of the livestock beyond seven
days from the date on which the cattle were priced for
purchase.
``(6) A live poultry dealer terminating a poultry growing
arrangement, or a swine contractor terminating a swine
production contract, without full compensation to the grower
for debt incurred or other investments reasonably requested or
made in order to secure or maintain the poultry growing
arrangement or swine production contract including all renewals
to any original contract between the live poultry dealer or
swine contractor and the grower.
``(7) A packer failing to fully compensate livestock
producers that regularly market livestock to a packer at a
processing plant arising from the closure of the processing
plant, including for a period covering no less than seven years
the reasonable additional expenses arising from marketing the
livestock at other plants within reasonable marketing distance
of the producer and lower prices if the closure results in
reduced competition for livestock within a reasonable marketing
distance of the closed plant.''.
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