Current status is Read twice and referred to the Committee on Agriculture, Nutrition, and Forestry. (Sponsor introductory remarks on measure: CR S3119-3120)

119th CONGRESS

1st Session

S. 1904

1. Short title
2. Indemnification of big egg producers for avian influenza

1. Short title

This Act may be cited as the "Ending Taxpayer Support for Big Egg Producers Act".

2. Indemnification of big egg producers for avian influenza

The Animal Health Protection Act is amended by inserting after section 10409A (7 U.S.C. 8308a) the following:

10409B. Indemnification of big egg producers for avian influenza

(a) Definition of covered entity -

(1) In general - In this section, the term "covered entity" means a person that, together with its affiliates, has more than—

(A) - $100,000,000 in annual revenue; and

(B) - 1,500 employees.

(2) Affiliation - For purposes of paragraph (1), an affiliate shall be determined in accordance with sections 121.103 and 121.301(f) of title 13, Code of Federal Regulations (or successor regulations).

(3) Employee - For purposes of paragraph (1), an employee includes—

(A) - any individual performing clerical or administrative support, or other similar function, for the person described in paragraph (1); and

(B) - any independent contractor acting on behalf of that person.

(b) Certification -

(1) In general - The Secretary shall only provide indemnity or compensation under section 10407 to a covered entity for poultry flocks affected by the highly pathogenic avian influenza if the covered entity certifies that the covered entity will not pay dividends with respect to its common stock, or repurchase an equity security of the covered entity or a parent company of the covered entity that is listed on a national securities exchange, during the 2-year period following the receipt of the indemnity or compensation, except to the extent required under a contractual obligation that is in effect as of the date of enactment of this section.

(2) Private equity-owned businesses and public companies - To receive indemnity or compensation described in paragraph (1), a covered entity that is a portfolio company of a private equity fund or is a public company shall, in addition to the certification under that paragraph, certify that—

(A) - current economic uncertainty makes indemnity or compensation from the Secretary necessary to support the ongoing operations of the covered entity; and

(B) - the covered entity is not able to access other sources of liquidity sufficient to support ongoing operations in a manner that is not significantly detrimental to the covered entity.

(3) Repayment - A covered entity described in paragraph (2) that knowingly makes a false statement on the certification under that paragraph shall be required to repay the full amount of indemnity or compensation received, with interest.

(4) Enforcement - A covered entity described in paragraph (2) that knowingly makes a false statement on the certification under that paragraph is punishable by imprisonment of not more than 5 years, a fine of up to $1,000,000, or both.