S.1904 - Ending Taxpayer Support for Big Egg Producers Act (119th Congress)
Summary
S.1904, the "Ending Taxpayer Support for Big Egg Producers Act," aims to amend the Animal Health Protection Act. It introduces requirements for large poultry producers (covered entities) receiving indemnification or compensation from the Secretary of Agriculture due to highly pathogenic avian influenza. These entities must certify they will not pay dividends or repurchase equity securities for two years post-receipt of funds, with additional certifications and potential penalties for private equity-owned businesses and public companies.
Expected Effects
The bill's likely effect is to limit taxpayer support for large egg producers during avian influenza outbreaks. It aims to prevent these companies from using government funds for shareholder benefits rather than operational needs. This could lead to more responsible use of taxpayer money and potentially encourage better risk management within the poultry industry.
Potential Benefits
- Reduces the likelihood of large agricultural businesses using taxpayer funds for dividends and stock buybacks.
- Ensures that government assistance is directed towards maintaining operations during crises.
- May incentivize better biosecurity practices among large egg producers to avoid outbreaks.
- Could free up government funds for smaller agricultural businesses or other public needs.
- Increases accountability and transparency in the use of public funds.
Potential Disadvantages
- May disproportionately affect larger egg producers, potentially leading to market consolidation.
- Could create disincentives for large producers to participate in government programs designed to combat avian influenza.
- Increased compliance costs for covered entities due to certification requirements.
- Potential for legal challenges regarding the fairness and constitutionality of the restrictions.
- May not fully address the underlying issues contributing to avian influenza outbreaks.
Most Disadvantaged Areas:
Constitutional Alignment
The bill's alignment with the US Constitution is complex. Congress has the power to regulate interstate commerce (Article I, Section 8), which includes agricultural products. The bill's restrictions on how companies use government funds could be seen as a condition of receiving federal assistance, falling under Congress's spending power. However, challenges could arise if the restrictions are deemed arbitrary or discriminatory, potentially violating the Fifth Amendment's due process clause.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).