Agricultural Market Promotion Program Amendments Act of 1993

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Agricultural Market Promotion 
Program Amendments Act of 1993''.

SEC. 2. MODIFICATIONS TO MARKET PROMOTION PROGRAM.

    (a) Small-Sized Commercial Entities and Medium-Sized Commercial 
Entities That Are Beginning Exporters.--Section 203(c) of the 
Agricultural Trade Act of 1978 (7 U.S.C. 5623(c)) is amended--
            (1) in paragraph (2), by striking ``in the case of an 
        unfair trade practice'' and inserting ``in the case of--
                    ``(A) an unfair trade practice; or
                    ``(B) a small-sized commercial entity, or a medium-
                sized commercial entity, that is a beginning exporter, 
                as determined by the Secretary.''; and
            (2) by adding at the end the following new paragraph:
            ``(3) Goal for small-sized commercial entities and medium-
        sized commercial entities that are beginning exporters.--In 
        carrying out the program established under this section, the 
        Secretary shall use, to the maximum extent practicable, at 
        least 30 percent of the total funds available or 30 percent of 
        the value of any commodities employed, as determined by the 
        Secretary, for each of fiscal years 1994 and 1995 for program 
        activities involving small-sized commercial entities, and 
        medium-sized commercial entities, that are beginning 
        exporters.''.
    (b) Branded Promotion.--Section 203(e)(4) of such Act is amended by 
adding at the end the following new sentence: ``Assistance provided 
under this paragraph may be used only for market promotion activities 
that are in addition to activities for which a commercial entity 
expends an amount during a year in a foreign country, in United States 
dollars adjusted to reflect the latest Consumer Price Index for all-
urban consumers published by the Department of Labor, that is equal to 
the dollar amount expended by the commercial entity (other than amounts 
provided under this section) on all market promotion activities during 
the preceding year in the foreign country.''.
    (c) Other Terms and Conditions.--Section 203(f) of such Act is 
amended by adding at the end the following new paragraphs:
            ``(4) Independent audits.--In addition to an audit that is 
        required by section 403, the Secretary shall require that, as a 
        condition of eligibility for assistance under this section, a 
        commercial entity that receives more than $50,000 a year in 
        assistance under this section shall provide for an independent 
        audit of program activities under this section during the year 
        to determine whether the entity has complied with the 
        requirements of this section.
            ``(5) Prohibition on assistance for tobacco.--No assistance 
        under this section may be used for the development, 
        maintenance, or expansion of a commercial export market for 
        tobacco.
            ``(6) Definitions.--As used in this section:
                    ``(A) Commercial entity.--The term `commercial 
                entity' means a cooperative or private organization 
                that exports or promotes an agricultural commodity, 
                including an entity that controls, is controlled by, or 
                is under common control with such a cooperative or 
                private organization.
                    ``(B) Medium-sized commercial entity.--The term 
                `medium-sized commercial entity' means a commercial 
                entity that employs not less than 51, nor more than 
                500, individuals.
                    ``(C) Small-sized commercial entity.--The term 
                `small-sized commercial entity' means a commercial 
                entity that employs not more than 50 individuals.''.
    (d) Graduation.--Paragraph (2) of section 203(g) of such Act is 
amended to read as follows:
            ``(2) Limitations.--
                    ``(A) Branded promotion.--
                            ``(i) In general.--Assistance provided 
                        under this section to a commercial entity for 
                        activities described in subsection (e)(4) that 
                        are conducted in a foreign country--
                                    ``(I) during each year of the first 
                                3-year period the commercial entity 
                                receives assistance for the activities, 
                                shall not exceed 50 percent of the cost 
                                of implementing the marketing plan in 
                                the country;
                                    ``(II) during the 4th year of the 
                                period the commercial entity receives 
                                assistance for the activities, shall 
                                not exceed 33 percent of the cost of 
                                implementing the marketing plan in the 
                                country; and
                                    ``(III) during the 5th year of 
                                period the commercial entity receives 
                                assistance for the activities, shall 
                                not exceed 17 percent of the cost of 
                                implementing the marketing plan in the 
                                country.
                            ``(ii) Maximum period.--Assistance provided 
                        under this section to a commercial entity for 
                        activities described in subsection (e)(4) that 
                        are conducted in a foreign country shall not be 
                        provided for more than 5 years.
                    ``(B) Generic promotion.--
                            ``(i) In general.--To be eligible for 
                        assistance under this section (other than for 
                        activities described in subsection (e)(4) or 
                        clause (iii)), an eligible trade organization 
                        shall contribute a larger share of the cost of 
                        a marketing plan for a foreign country in each 
                        year the organization conducts activities in 
                        the country, as determined by the Secretary.
                            ``(ii) Maximum period.--The nonfederal 
                        share shall be progressively increased in such 
                        a manner that an eligible trade organization 
                        shall not receive assistance under this section 
                        in the country for more than 5 years.
                            ``(iii) Regional state-related trade 
                        organizations.--Assistance may be provided 
                        under this section for a period not to exceed 5 
                        years for each agricultural commodity for which 
                        an eligible regional State-related organization 
                        has an approved marketing place for an 
                        activity, other than for an activity described 
                        in subsection (e)(4).
                    ``(C) Waiver.--The Secretary may waive the 
                limitations described in subparagraphs (A) and (B) in 
                the case of an agricultural commodity with respect to 
                which there has been a favorable decision by the United 
                States Trade Representative under section 301 of the 
                Trade Act of 1974 (19 U.S.C. 2411). To grant waivers, 
                the Secretary shall establish criteria that are 
                consistent and documented.''.

SEC. 3. COOPERATOR FOREIGN MARKET DEVELOPMENT PROGRAM.

    Section 1126(b) of the Food Security Act of 1985 (7 U.S.C. 
1736u(b)) is amended by striking ``shall be'' and inserting ``shall not 
be''.

SEC. 4. EFFECTIVE DATE; REGULATIONS.

    (a) Effective Date.--This Act and the amendments made by this Act 
shall become effective on the date of enactment of this Act.
    (b) Regulations.--Not later than 60 days after the date of 
enactment of this Act, the Secretary of Agriculture shall issue 
regulations to carry out this Act and the amendments made by this Act.

Summary: Agricultural Market Promotion Program Amendments Act of 1993 - Amends the Agricultural Trade Act of 1978 with regard to the agricultural market promotion program to: (1) give priority to, and obligate specified funds for, small and medium beginning exporters. (2) permit assistance for branded promotion only to supplement an entity's own promotional activities, (3) prohibit assistance for tobacco promotion. And (4) incrementally reduce and eliminate over a five-year period assistance for branded and generic promotion in a foreign country.