S. 1904: Ending Taxpayer Support for Big Egg Producers Act

This bill, known as the Ending Taxpayer Support for Big Egg Producers Act, aims to modify the existing Animal Health Protection Act to introduce new requirements for large egg producers seeking federal financial support in the event of avian influenza outbreaks affecting poultry flocks.

Key Provisions of the Bill

Definition of Covered Entity

The bill defines a "covered entity" as any person or company, along with its affiliates, that meets specific criteria:

• Has more than $100 million in annual revenue.
• Employs over 1,500 individuals.

Indemnity and Compensation Conditions

To receive federal indemnity or compensation for losses due to highly pathogenic avian influenza, covered entities must fulfill the following certifications:

• They must certify that they will not pay dividends on common stock or buy back their own equity securities for a period of two years after receiving the indemnity, unless required by an existing contractual obligation.
• If the covered entity is a public company or part of a private equity fund, it must also certify two additional points:
  • That current economic uncertainty makes the federal support necessary for their operations.
  • That they cannot access other financial resources that would be sufficient to sustain their operations without causing significant harm to the entity.

Penalties for False Statements

If a covered entity knowingly provides false information in their certification:

• They will be required to repay the full amount of the indemnity or compensation with interest.
• They may face legal consequences, which could include imprisonment for up to 5 years, fines of up to $1,000,000, or both.

Overall Intent

The primary intent of this legislation is to ensure that taxpayer funds are not used to support large corporations that may not need assistance while simultaneously holding these entities accountable for their claims regarding financial necessity and operational capacity.

Relevant Companies

None found.