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119-s-1904119th CongressWALLET

Ending Taxpayer Support for Big Egg Producers Act

Sponsored By: Senator Reed, Jack [D-RI]

Introduced

Summary

This bill would stop routine taxpayer-funded indemnity for very large egg producers by tying USDA payments to strict financial and transparency conditions. It would add Section 10409B to the Animal Health Protection Act to set those rules and penalties.

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  • Large egg producers that meet the bill's size test would only be eligible for indemnity for highly pathogenic avian influenza if they certify they will not pay dividends or repurchase equity listed on a national exchange for 2 years after receiving payments. The dividend and buyback ban has one narrow exception for contractual obligations in place as of enactment.
  • Private equity-owned portfolio companies and public companies must also certify that current economic uncertainty makes USDA indemnity necessary and that they cannot access other liquidity without serious harm. Knowingly false certifications require full repayment with interest and carry criminal penalties up to 5 years in prison and fines up to $1,000,000.
  • The bill defines a "covered entity" as a person with more than $100.0 million in annual revenue and more than 1,500 employees counting affiliates. Affiliation follows 13 U.S.C. regulatory rules and "employee" includes clerical staff and independent contractors acting on the entity's behalf.

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Bill Overview

Analyzed Economic Effects

1 provisions identified: 0 benefits, 1 costs, 0 mixed.

Limits taxpayer indemnity for big egg producers

If enacted, this bill would limit when the federal government pays indemnity for bird flu losses to very large egg producers. A "covered entity" would be a person and its affiliates with over $100,000,000 in yearly revenue and more than 1,500 employees (including clerical staff and independent contractors), using 13 CFR rules to count affiliates. The Secretary would only provide indemnity if the covered entity certifies it will not pay common-stock dividends or repurchase listed equity for two years after getting indemnity, except to meet contracts already in effect. Private-equity portfolio companies and public companies would also have to certify they need the indemnity to keep operating and cannot get other liquidity without serious harm. Knowingly lying would trigger full repayment with interest and and could bring up to 5 years in prison, a fine up to $1,000,000, or both.

Sponsors & CoSponsors

Sponsor

Reed, Jack [D-RI]

RI • D

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

No roll call votes available for this bill.

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