Ending Taxpayer Support for Big Egg Producers Act
This bill, titled the Ending Taxpayer Support for Big Egg Producers Act, would amend the Animal Health Protection Act to add a new section (10409B) that conditions any indemnity or compensation paid to poultry producers for highly pathogenic avian influenza (HPAI) on new certifications from the recipient. A key gatekeeper is whether the recipient qualifies as a “covered entity”—defined as a business with more than $100 million in annual revenue and more than 1,500 employees (including affiliates and certain contractors). For such entities, indemnity would require a certification pledging not to pay dividends or buy back stock for two years after receiving the payment, unless required by pre-existing contracts. For entities that are private equity–owned or publicly traded, the bill adds two extra certification requirements: (A) that economic uncertainty justifies the indemnity to support ongoing operations, and (B) that the entity cannot access other liquidity sources without causing significant harm. If a covered entity knowingly makes a false certification, it must repay the full indemnity with interest, and it faces criminal penalties (up to 5 years’ imprisonment, up to $1,000,000 in fines, or both). In short, the bill tightens oversight and conditions on taxpayer-funded aid to large egg producers and their financial structures.
Key Points
- 1Creation of a new indemnification condition: The bill adds 10409B to the Animal Health Protection Act, requiring a certification before paying indemnity or compensation to poultry flocks affected by HPAI.
- 2Definition of a “covered entity”: A firm (with its affiliates) must have annual revenue over $100 million and more than 1,500 employees to trigger the new certification requirements.
- 3Dividend and buyback restriction: For covered entities, indemnity is contingent on agreeing not to pay dividends or repurchase equity securities on national exchanges during the 2-year period after indemnity, except where contracts already require otherwise.
- 4Enhanced requirements for PE-owned and public companies: These entities must certify that indemnity is necessary due to current economic uncertainty and that no other liquidity sources are available without causing substantial harm.
- 5Penalties for false certifications: If a covered entity knowingly makes a false certification, it must repay the indemnity with interest, and face criminal penalties (up to 5 years in prison and/or fines up to $1,000,000).