Initiated
June, 1999
Administration: The Attorney General is responsible for enforcing this Act. The Nebraska Department of Agriculture is given certain duties under the Act. These include adopting certain regulations (see below), making report information available to the public, referring violations of sections 54-2607 to 54-2615 and 54-2617 to 54-2625 to the Attorney General and assessing a fee. The Nebraska Department of Agriculture, Administration Division is located in the State Office Building, 301 Centennial Mall South, Lincoln, Nebraska 68509. Telephone: (402) 471-2341.
Revisions: The provisions of this Act were initiated during the 1999 session of the Nebraska Legislature, LB 835.
Rules: The Nebraska Department of Agriculture is authorized to promulgate regulations for sections 54-2607 to 54-2628 only. Regulations have not yet been promulgated under this Act.
54-2601 Act, how cited.
54-2602 Terms, defined.
54-2603 Legislative findings.
54-2604 Packers; acts prohibited.
54-2605 Violations by packer; enforcement; penalty.
54-2606 Packer violation; proceeds of livestock sale; fines;
distribution.
54-2607 Sales of swine; packers; prohibited acts.
54-2608 Sales of swine; authorized; when.
54-2609 Sales of swine; contracts allowed; conditions.
54-2610 Sales of swine; contract voidable by seller.
54-2611 Sales of swine; recovery of damages.
54-2612 Sales of swine; violation; penalty.
54-2613 Sales of swine; packer; reporting
requirements.
54-2614 Sales of swine; reports available to public;
department; duty.
54-2615 Sales of swine; packer; failure to make reports; false
information; penalties.
54-2616 Sales of swine; enforcement of provisions; restraining
order.
54-2617 Sales of cattle; packer; prohibited acts.
54-2618 Sales of cattle; contracts allowed;
conditions.
54-2619 Sales of cattle; pricing mechanisms;
restrictions.
54-2620 Sales of cattle; contract voidable by seller.
54-2621 Sales of cattle; recovery of damages.
54-2622 Sales of cattle; violation; penalty.
54-2623 Sales of cattle; packer; reporting
requirements.
54-2624 Sales of cattle; reports available to public;
department; duty.
54-2625 Sales of cattle; packer; failure to make reports; false
information; penalties.
54-2626 Sales of cattle; enforcement of provisions; restraining
order.
54-2627 Fee per animal unit; department assess.
54-2628 Competitive Livestock Markets Cash Fund; created;
use; investment.
54-2629 Rules and regulations.
54-2630 Attorney General; enforcement powers.
54-2631 Attorney General; reciprocal agreements;
authorized.
54-2601. Act, how cited. Sections 54-2601 to
54-2631 shall be known and may be cited as the Competitive Livestock Markets Act.
54-2602. Terms, defined. For purposes of
the Competitive Livestock Markets Act:
(2) Department means the Department of Agriculture;
(3) Director means the Director of Agriculture or his or her designee;
(4) Livestock means live cattle or swine;
(5) Packer means a person, or agent of such person, engaged in the business of
slaughtering livestock in Nebraska in excess of one hundred fifty thousand animal units
per year; and
(6) Person includes individuals, firms, associations, limited liability companies, and
corporations and officers or limited liability company members thereof.
54-2603. Legislative findings. The
Legislature finds that family farmers and ranchers have been experiencing, with greater
frequency, severely depressed livestock market prices. These market conditions are
disproportionately affecting independent producers, which make up the majority of
farms and ranches, and are threatening the economic stability of Nebraska's rural
communities. The Legislature further finds that packer concentration, vertical
integration, and contractual arrangements are undermining the system of price
discovery. In the absence of any meaningful federal response to the conditions
described, the purpose of the Competitive Livestock Markets Act is to increase livestock
market price transparency, ensuring that producers can compete in a free and open
market. This is accomplished by establishing minimum price and contract reporting
requirements, eliminating volume premiums and volume-based incentives, scrutinizing
livestock production contracts and marketing agreements, and statutorily reinforcing the
constitutional prohibition against the ownership, keeping, or feeding of livestock by
packers for the production of livestock or livestock products.
54-2604. Packers; acts prohibited. After May
27, 1999, it is unlawful for a packer to directly or indirectly be engaged in the ownership,
keeping, or feeding of livestock for the production of livestock or livestock products,
other than temporary ownership, keeping, and feeding, not to exceed five days,
necessary and incidental to the process of slaughter.
54-2605. Violations by packer; enforcement; penalty.
Whenever the Attorney General has reason to believe that a packer is violating
section 54-2604, he or she shall commence an action in district court to enjoin the
livestock operation. The court, upon determination that such packer is in violation of
section 54-2604, shall order such livestock to be removed and sold and shall assess
the packer a fine of not less than one thousand dollars for each day of violation.
54-2606. Packer violation; proceeds of livestock sale; fines;
distribution. The proceeds from any livestock ordered to be sold
pursuant to section 54-2605 shall not be distributed until all fines and costs associated
with such action have been paid. All money collected as a fine shall be remitted to the
State Treasurer for credit to the permanent school fund. All fines levied under this
section remaining unpaid shall constitute a debt to the State of Nebraska which may be
collected by lien foreclosure or sued for and recovered in any proper form of action, in
the name of the State of Nebraska, in the district court of the county in which the
violation occurred.
54-2607. Sales of swine; packers; prohibited acts.
Except as provided in sections 54-2608 and 54-2609, it is unlawful for a packer
purchasing or entering into a contract to purchase swine to pay or enter into a contract
to pay different prices to the sellers of the swine. This section shall not be construed to
mean that a price or payment method must remain fixed throughout any marketing
period.
54-2608. Sales of swine; authorized; when.
Section 54-2607 does not apply to any direct, spot, or cash purchase of swine if the
following requirements are met:
(2) After making the payment to a seller, the packer reports the payment information
required under section 54-2613, including the payment method specifying prices paid
for criteria relating to carcass merit and transportation and acquisition costs.
54-2609. Sales of swine; contracts allowed;
conditions. Section 54-2607 does not apply to any contract to
purchase swine at a certain date or time if the following requirements are met:
(2) The packer reports the payment information required under section 54-2613,
including the payment method specifying prices paid for criteria relating to carcass merit
and transportation and acquisition costs;
(3) The packer reports the information required under section 54-2613, including the
price to be paid for swine to be delivered on specified delivery dates or times; and
(4) An offer to enter into a contract for the delivery of swine, according to the same
terms and conditions, is made to other sellers.
54-2610. Sales of swine; contract voidable by seller.
Any contract made by a packer in violation of section 54-2607 is voidable by the
seller.
54-2611. Sales of swine; recovery of damages.
A seller may bring an action against any packer violating section 54-2607 to
recover damages sustained by reason of such violation.
54-2612. Sales of swine; violation; penalty.
Any packer acting in violation of section 54-2607 is guilty of a Class IV misdemeanor
and shall be fined five hundred dollars per violation.
54-2613. Sales of swine; packer; reporting
requirements. Beginning February 15, 2000, a packer shall, two times
each day during which swine are purchased, report to the department and to the United
States Department of Agriculture, agricultural market service livestock news branch, all
swine that are purchased in the cash, spot, or direct market since the last report. A
packer shall, one time each day during which swine are purchased, report to the
department and to the United States Department of Agriculture, agricultural market
service livestock news branch, all swine that are purchased by contract that day. Such
reports shall be completed on forms prepared by the department, in consultation with
the agricultural market service livestock news branch, and shall include:
(2) The base price paid and premium and discount payment adjustments for quality
characteristics including grade, yield, and backfat;
(3) Base price and premium and discount factors for swine purchased using a formula-
based pricing system; and
(4) The number of swine purchased under contract, in which the date of delivery is set
for more than fourteen days after the making of the contract, and the base price to be
paid or the formula that will be used to determine the base price to be paid.
The report shall not include information regarding the identity of a seller.
54-2614. Sales of swine; reports available to public;
department; duty. The department shall make report information
received under section 54-2613 available to the public in a timely manner to permit the
use of the information while it is still relevant.
54-2615. Sales of swine; packer; failure to make reports;
false information; penalties. The failure of a packer to report
information to the department as required in section 54-2613 is punishable by a civil
penalty not to exceed one thousand dollars for each day that a complete report is not
made available to the department. The intentional reporting of false information by a
packer in the report to the department required in section 54-2613 is a Class IV
misdemeanor.
54-2616. Sales of swine; enforcement of provisions;
restraining order. The Attorney General shall enforce the provisions of
sections 54-2607 to 54-2615, and the director shall refer any violations of these
provisions to the Attorney General. The Attorney General or any person injured by a
violation of these provisions may bring an action in district court to restrain a packer
from violating these provisions.
54-2617. Sales of cattle; packer; prohibited acts.
It is unlawful for a packer to enter into a contract to purchase cattle for slaughter
if:
(2) The date of delivery of such cattle is not specified.
54-2618. Sales of cattle; contracts allowed;
conditions. Section 54-2617 does not apply to any contract to purchase
cattle for slaughter if the following conditions are met:
(2) The packer reports the contract information as required under section 54-2623,
including specified delivery dates or times.
54-2619. Sales of cattle; pricing mechanisms;
restrictions. It is unlawful for a packer to enter into a contract to
purchase cattle for slaughter using a formula or grid pricing mechanism if the packer
fails to negotiate a base price prior to the cattle being committed or scheduled for
slaughter.
54-2620. Sales of cattle; contract voidable by seller.
Any contract to purchase cattle for slaughter that is in violation of section 54-
2617 or 54-2619 is voidable by the seller.
54-2621. Sales of cattle; recovery of damages.
A seller may bring an action against any packer violating section 54-2617 or 54-
2619 to recover damages sustained by reason of such violation.
54-2622. Sales of cattle; violation; penalty.
Any packer acting in violation of section 54-2617 or 54-2619 shall be guilty of a Class IV
misdemeanor and shall be fined five hundred dollars per violation.
54-2623. Sales of cattle; packer; reporting
requirements. Beginning February 15, 2000, a packer shall, two times
each day during which cattle are purchased, report to the department and to the United
States Department of Agriculture, agricultural market service livestock news branch, all
cattle that are purchased in the cash, spot, or direct market since the last report. A
packer shall, one time each day during which cattle are purchased, report to the
department and to the United States Department of Agriculture, agricultural market
service livestock news branch, all cattle that are purchased by contract that day. Such
reports shall be completed on forms prepared by the department, in consultation with
the agricultural market service livestock news branch, and shall include:
(2) Quality characteristics, including sex of the cattle, estimated percentage of the meat
which will be graded choice or better upon inspection based upon the United States
Department of Agriculture official grades, and estimated live weight, as well as premium
and discount factors that may apply to these characteristics;
(3) Base price and premium and discount factors for cattle purchased using a formula
or grid pricing mechanism; and
(4) The delivery month, volume, and applicable basis level for all cattle purchased
under basis contract.
The report shall not include information regarding the identity of a seller.
54-2624. Sales of cattle; reports available to public;
department; duty. The department shall make report information
received under section 54-2623 available to the public in a timely manner to permit the
use of the information while it is still relevant.
54-2625. Sales of cattle; packer; failure to make reports; false
information; penalties. The failure of a packer to report information to
the department as required in section 54-2623 is punishable by a civil penalty not to
exceed one thousand dollars for each day that a complete report is not made available
to the department. The intentional reporting of false information by a packer in the
report to the department required in section 54-2623 is a Class IV misdemeanor.
54-2626. Sales of cattle; enforcement of provisions;
restraining order. The Attorney General shall enforce the provisions of
sections 54-2617 to 54-2625, and the director shall refer any violations of these
provisions to the Attorney General. The Attorney General or any person injured by a
violation of these provisions may bring an action in district court to restrain a packer
from violating these provisions.
54-2627. Fee per animal unit; department assess.
The department shall assess a fee not to exceed two cents per animal unit
reported under sections 54-2613 and 54-2623 as direct-purchased or contract-
purchased.
54-2628. Competitive Livestock Markets Cash Fund; created;
use; investment. The Competitive Livestock Markets Cash Fund is
created. The fund shall be administered by the department. The fund shall consist of
investigative and enforcement expense assessments against violators of the
Competitive Livestock Markets Act and fees paid by a packer pursuant to section
54-2627. The money in the fund shall be used to defray the investigative, enforcement,
and reporting expenses of the department in administering the act. Any money in the
fund available for investment shall be invested by the state investment officer pursuant
to the Nebraska Capital Expansion Act and the Nebraska State Funds Investment Act.
54-2629. Rules and regulations. The
department shall adopt and promulgate rules and regulations to carry out sections 54-
2607 to 54-2628.
54-2630. Attorney General; enforcement powers.
The Attorney General, for the enforcement of the Competitive Livestock Markets
Act, shall have the authority to subpoena witnesses, compel their attendance, examine
them under oath, and require the production of documents, records, or tangible things
deemed relevant to the proper performance of his or her duties. Service of any
subpoena shall be made in the manner prescribed by the rules of civil procedure.
54-2631. Attorney General; reciprocal agreements;
authorized. The Attorney General shall have the power and authority to
enter into reciprocal agreements with the duly authorized representatives of other
jurisdictions, federal or state, for the exchange of information on a cooperative basis
which may assist in the proper administration of the Competitive Livestock Markets Act.
(1) Animal unit means one head of cattle, three calves under four hundred fifty pounds,
or five swine;
(1) The difference in price is based on: (a) A payment method specifying prices paid for
criteria relating to carcass merit; or (b) actual and quantifiable costs related to
transporting and acquiring the swine by the packer; and
(1) The difference in price is based on: (a) A payment method specifying prices paid for
criteria relating to carcass merit; or (b) actual and quantifiable costs related to
transporting and acquiring the swine by the packer;
(1) The cash price paid and the number of swine purchased in the cash, spot, or direct
market at price intervals representative of the day's trade;
(1) The contract specifies that the seller is not allowed to report the terms of the
contract; or
(1) The contract to purchase cattle for slaughter specifies the month of delivery and
allows the seller to set the week for delivery within such month; and
(1) The cash price paid and the number of cattle purchased at price intervals
representative of the day's trade;