Fair Contracts for Growers Act of 2005

Fair Contracts for Growers Act of 2005 - Allows the use of arbitration to resolve a controversy as provided for under a livestock or poultry contract only if, after the controversy arises, both parties consent. Directs the arbitrator to provide to the parties to the contract a written explanation of the factual and legal basis for an award.

[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[S. 2131 Introduced in Senate (IS)]








109th CONGRESS
  1st Session
                                S. 2131

 To amend title 9, United States Code, to provide for greater fairness 
in the arbitration process relating to livestock and poultry contracts.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                           December 16, 2005

  Mr. Grassley (for himself, Mr. Feingold, Mr. Harkin, and Mr. Hagel) 
introduced the following bill; which was read twice and referred to the 
                       Committee on the Judiciary

_______________________________________________________________________

                                 A BILL


 
 To amend title 9, United States Code, to provide for greater fairness 
in the arbitration process relating to livestock and poultry contracts.

    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 ``Fair Contracts for Growers Act of 
2005''.

SEC. 2. ELECTION OF ARBITRATION.

    (a) In General.--Chapter 1 of title 9, United States Code, is 
amended by adding at the end the following:
``Sec. 17. Livestock and poultry contracts
    ``(a) Definitions.--In this section:
            ``(1) Livestock.--The term `livestock' has the meaning 
        given the term in section 2(a) of the Packers and Stockyards 
        Act, 1921 (7 U.S.C. 182(a)).
            ``(2) Livestock or poultry contract.--The term `livestock 
        or poultry contract' means any growout contract, marketing 
        agreement, or other arrangement under which a livestock or 
        poultry grower raises and cares for livestock or poultry.
            ``(3) Livestock or poultry grower.--The term `livestock or 
        poultry grower' means any person engaged in the business of 
        raising and caring for livestock or poultry in accordance with 
        a livestock or poultry contract, whether the livestock or 
        poultry is owned by the person or by another person.
            ``(4) Poultry.--The term `poultry' has the meaning given 
        the term in section 2(a) of the Packers and Stockyards Act, 
        1921 (7 U.S.C. 182(a)).
    ``(b) Consent to Arbitration.--If a livestock or poultry contract 
provides for the use of arbitration to resolve a controversy under the 
livestock or poultry contract, arbitration may be used to settle the 
controversy only if, after the controversy arises, both parties consent 
in writing to use arbitration to settle the controversy.
    ``(c) Explanation of Basis for Awards.--If arbitration is elected 
to settle a dispute under a livestock or poultry contract, the 
arbitrator shall provide to the parties to the contract a written 
explanation of the factual and legal basis for the award.''.
    (b) Technical and Conforming Amendment.--The table of sections for 
chapter 1 of title 9, United States Code, is amended by adding at the 
end the following:

``17. Livestock and poultry contracts.''.

SEC. 3. EFFECTIVE DATE.

    The amendments made by section 2 shall apply to a contract entered 
into, amended, altered, modified, renewed, or extended after the date 
of enactment of this Act.
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