To ensure an abundant and affordable supply of highly nutritious fruits, vegetables, and other specialty crops for American consumers and international markets by enhancing the competitiveness of United States-grown specialty crops, and for other purposes.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Specialty Crops Competitiveness Act 
of 2004''.

SEC. 2. FINDINGS AND PURPOSE.

    (a) Findings.--Congress finds the following:
        (1) A secure domestic food supply is a national security 
    imperative for the United States.
        (2) A competitive specialty crop industry in the United States 
    is necessary for the production of an abundant, affordable supply 
    of highly nutritious fruits, vegetables, and other specialty crops, 
    which are vital to the health and well-being of all Americans.
        (3) Increased consumption of specialty crops will provide 
    tremendous health and economic benefits to both consumers and 
    specialty crop growers.
        (4) Specialty crop growers believe that there are numerous 
    areas of Federal agriculture policy that could be improved to 
    promote increased consumption of specialty crops and increase the 
    competitiveness of producers in the efficient production of 
    affordable specialty crops in the United States.
        (5) As the globalization of markets continues, it is becoming 
    increasingly difficult for United States producers to compete 
    against heavily subsidized foreign producers in both the domestic 
    and foreign markets.
        (6) United States specialty crop producers also continue to 
    face serious tariff and non-tariff trade barriers in many export 
    markets.
    (b) Purpose.--It is the purpose of this Act to make necessary 
changes in Federal agriculture policy to accomplish the goals of 
increasing fruit, vegetable, and nut consumption and improving the 
competitiveness of United States specialty crop producers.

SEC. 3. DEFINITIONS.

    In this Act:
        (1) The term ``specialty crop'' means fruits and vegetables, 
    tree nuts, dried fruits, and nursery crops (including 
    floriculture).
        (2) The term ``State'' means the several States, the District 
    of Columbia, and the Commonwealth of Puerto Rico.
        (3) The term ``State department of agriculture'' means the 
    agency, commission, or department of a State government responsible 
    for agriculture within the State.

             TITLE I--STATE ASSISTANCE FOR SPECIALTY CROPS

SEC. 101. SPECIALTY CROP BLOCK GRANTS.

    (a) Availability and Purpose of Grants.--Subject to the 
appropriation of funds to carry out this section, the Secretary of 
Agriculture shall make grants to States for each of the fiscal years 
2005 through 2009 to be used by State departments of agriculture solely 
to enhance the competitiveness of specialty crops.
    (b) Grants Based on Value of Production.--Subject to subsection 
(c), the amount of the grant for a fiscal year to a State under this 
section shall bear the same ratio to the total amount appropriated 
pursuant to the authorization of appropriations in subsection (i) for 
that fiscal year as the value of specialty crop production in the State 
during the preceding calendar year bears to the value of specialty crop 
production during the preceding calendar year in all States whose 
application for a grant for that fiscal year is accepted by the 
Secretary under subsection (f).
    (c) Minimum Grant Amount.--Subject to the appropriation of 
sufficient funds to carry out this subsection, each State shall receive 
at least $100,000 each fiscal year as a grant under this section 
notwithstanding the amount calculated under subsection (b) for the 
State.
    (d) Eligibility.--To be eligible to receive a grant under this 
section, a State department of agriculture shall prepare and submit, 
for approval by the Secretary of Agriculture, an application at such 
time, in such a manner, and containing such information as the 
Secretary shall require by regulation, including--
        (1) a State plan that meets the requirements of subsection (e);
        (2) an assurance that the State will comply with the 
    requirements of the plan; and
        (3) an assurance that grant funds received under this section 
    shall supplement the expenditure of State funds in support of 
    specialty crops grown in that State, rather than replace State 
    funds.
    (e) Plan Requirements.--The State plan shall identify the lead 
agency charged with the responsibility of carrying out the plan and 
indicate how the grant funds will be utilized to enhance the 
competitiveness of specialty crops.
    (f) Review of Application.--In reviewing the application of a State 
submitted under subsection (d), the Secretary of Agriculture shall 
ensure that the State plan would carry out the purpose of grant 
program, as specified in subsection (a). The Secretary may accept or 
reject applications for a grant under this section.
    (g) Effect of Noncompliance.--If the Secretary of Agriculture, 
after reasonable notice to a State, finds that there has been a failure 
by the State to comply substantially with any provision or requirement 
of the State plan, the Secretary may disqualify, for one or more years, 
the State from receipt of future grants under this section.
    (h) Audit Requirements.--For each year that a State receives a 
grant under this section, the State shall conduct an audit of the 
expenditures of grant funds by the State. Not later than 30 days after 
the completion of the audit, the State shall submit a copy of the audit 
to the Secretary of Agriculture.
    (i) Authorization of Appropriations.--For each of the fiscal years 
2005 through 2009, there is authorized to be appropriated to the 
Secretary of Agriculture $44,500,000 to make grants under this section.

                  TITLE II--SPECIALTY CROP ADVANCEMENT

SEC. 201. TECHNICAL ASSISTANCE FOR SPECIALTY CROPS.

    For each of the fiscal years 2005 through 2009, there is authorized 
to be appropriated to the Secretary of Agriculture $2,000,000 to carry 
out section 3205 of the Farm Security and Rural Investment Act of 2002 
(7 U.S.C. 5680). Amounts appropriated pursuant to this authorization of 
appropriations shall be in addition to any other funds made available 
to carry out such section.

SEC. 202. REDUCTION IN BACKLOG OF AGRICULTURAL EXPORT PETITIONS.

    (a) Reduction Efforts.--To the maximum extent practicable, the 
Secretary of Agriculture shall endeavor to reduce the backlog in the 
number of applications for permits for the export of United States 
agricultural commodities. In achieving such reduction, the Secretary 
shall not dilute or diminish existing personnel resources that are 
currently managing sanitary and phytosanitary issues for--
        (1) United States agricultural commodities for which 
    exportation is sought; and
        (2) interdiction and control of pests and diseases, including 
    for the evaluation of pest and disease concerns of foreign 
    agricultural commodities for which importation is sought.
    (b) Report.--The Secretary of Agriculture shall submit to the 
Committee on Agriculture of the House of Representatives and the 
Committee on Agriculture, Nutrition, and Forestry of the Senate an 
annual report specifying, for the year covered by the report--
        (1) the total number of applications processed to completion;
        (2) the number of backlog applications processed to completion;
        (3) the percentage of backlog applications processed to 
    completion; and
        (4) the number of backlog applications remaining.

SEC. 203. REPORT ON SANITARY AND PHYTOSANITARY EXPORT ISSUES.

    Not later than 180 days after the date of the enactment of this 
Act, the Secretary of Agriculture shall submit to the Committee on 
Agriculture of the House of Representatives and the Committee on 
Agriculture, Nutrition, and Forestry of the Senate a report on 
significant sanitary and phytosanitary issues that affect the export of 
specialty crops.

                   TITLE III--SPECIALTY CROP RESEARCH

SEC. 301. METHYL BROMIDE ALTERNATIVES.

    (a) Priority.--The Secretary of Agriculture shall elevate the 
priority of current methyl bromide alternative research and extension 
activities and reexamine the risks and benefits of extending the phase-
out deadline in effect on the date of the enactment of this Act, 
including the estimated cost to the grower or processor associated with 
any alternatives proposed.
    (b) Authorization of Appropriations.--For each of the fiscal years 
2005 through 2009, there is authorized to be appropriated to the 
Secretary of Agriculture $5,000,000 to carry out this section.

SEC. 302. NATIONAL SPECIALTY CROP RESEARCH PROGRAM.

    Section 1672(e) of the Food, Agriculture, Conservation, and Trade 
Act of 1990 (7 U.S.C. 5925(e)) is amended by adding at the end of the 
following new paragraph:
        ``(45) Specialty crop research.--Research and extension grants 
    may be made under this section for the purpose of improving the 
    efficiency, productivity, and profitability of specialty crop 
    production in the United States.''.

SEC. 303. SPECIALTY CROP COMMITTEE.

    The National Agricultural Research, Extension, and Teaching Policy 
Act of 1977 is amended by inserting after section 1408 (7 U.S.C. 3123) 
the following new section:

``SEC. 1408A. SPECIALTY CROP COMMITTEE.

    ``(a) Establishment.--Not later than 90 days after the date of the 
enactment of the Specialty Crops Competitiveness Act of 2004, the 
executive committee of the Advisory Board shall establish, and appoint 
the initial members of, a permanent specialty crops committee that will 
be responsible for studying the scope and effectiveness of research, 
extension, and economics programs affecting the specialty crop 
industry.
    ``(b) Members.--Individuals who are not members of the Advisory 
Board may be appointed as members of the specialty crops committee. 
Members of the specialty crops committee shall serve at the discretion 
of the executive committee.
    ``(c) Annual Committee Report.--Not later than 180 days after the 
establishment of the specialty crops committee, and annually 
thereafter, the specialty crops committee shall submit to the Advisory 
Board a report containing the findings of its study under subsection 
(a). The specialty crops committee shall include in each report 
recommendations regarding the following:
        ``(1) Measures designed to improve the efficiency, 
    productivity, and profitability of specialty crop production in the 
    United States.
        ``(2) Measures designed to improve competitiveness in research, 
    extension, and economics programs affecting the specialty crop 
    industry.
        ``(3) Programs that would--
            ``(A) enhance the quality and shelf-life of fresh fruits 
        and vegetables, including their taste and appearance;
            ``(B) develop new crop protection tools and expand the 
        applicability and cost-effectiveness of integrated pest 
        management;
            ``(C) prevent the introduction of foreign invasive pests 
        and diseases;
            ``(D) develop new products and new uses of specialty crops;
            ``(E) develop new and improved marketing tools for 
        specialty crops;
            ``(F) enhance food safety regarding specialty crops;
            ``(G) improve mechanization of production practices; and
            ``(H) enhance irrigation techniques used in specialty crop 
        production.
    ``(d) Consideration by Secretary.--In preparing the annual budget 
recommendations for the Department of Agriculture, the Secretary shall 
take into consideration those findings and recommendations contained in 
the most-recent report of the specialty crops committee that are 
adopted by the Advisory Board.
    ``(e) Annual Report by Secretary.--In the budget material submitted 
to Congress by the Secretary in connection with the budget submitted 
pursuant to section 1105 of title 31, United States Code, for a fiscal 
year, the Secretary shall include a report describing how the Secretary 
addressed each recommendation of the specialty crops committee 
described in subsection (d).''.

                TITLE IV--PEST AND DISEASE RESPONSE FUND

SEC. 401. PEST AND DISEASE RESPONSE FUND.

    (a) Establishment.--There is established on the books of the 
Treasury an account to be known as the ``Pest and Disease Response 
Fund''. There shall be deposited into the Fund any proceeds received by 
the Secretary of Agriculture as reimbursement for services provided by 
the Secretary using amounts in the Fund.
    (b) Availability.--Amounts in the Fund shall remain available until 
expended.
    (c) Use of Fund.--In implementing the Animal Health Protection Act 
(7 U.S.C. 8301 et seq.) and the Plant Protection Act (7 U.S.C. 7701 et 
seq.), the Secretary of Agriculture shall have complete discretion 
regarding the use of amounts in the Fund to support emergency 
eradication and research activities in response to economic and health 
threats posed by pests and diseases affecting agricultural commodities.
    (d) Authorization of Appropriations.--For each of the fiscal years 
2005 through 2009, there is authorized to be appropriated to the 
Secretary of Agriculture $1,000,000 for deposit in the Fund.

SEC. 402. IMPORT AND EXPORT REGULATION REVIEW.

    (a) Peer Review.--The Secretary of Agriculture shall enter into an 
agreement with the National Plant Board to obtain a peer review of the 
procedures and standards that govern the consideration of import and 
export requests under section 412 of the Plant Protection Act (7 U.S.C. 
7712). The peer review shall be consistent with the guidance by the 
Office of Management and Budget pertaining to peer review and 
information quality.
    (b) Elements of Review.--The peer review required by subsection (a) 
shall address, at a minimum--
        (1) the preparation of risk assessments; and
        (2) the sufficiency, type, and quality of data that should be 
    submitted to the Secretary of Agriculture.
    (c) Submission of Results.--The results of the peer review 
conducted under subsection (a) shall be submitted to the Secretary and 
Congress not later than 180 days after the date of the enactment of 
this Act.

SEC. 403. MAINTENANCE OF FREDERICKSBURG INSPECTION TRAINING CENTER.

    For each of the fiscal years 2005 through 2009, there is authorized 
to be appropriated to the Secretary of Agriculture $1,500,000 for the 
maintenance of the Agricultural Marketing Service inspection training 
center in Fredericksburg, Virginia.

                               Speaker of the House of Representatives.

                            Vice President of the United States and    
                                               President of the Senate.

Summary: Specialty Crops Competitiveness Act of 2004 - Defines specialty crop as fruits, vegetables, tree nuts, dried fruits, and nursery crops . Title I: State Assistance for Specialty Crops - Directs the Secretary of Agriculture to make FY 2005 through 2009 State grants to enhance specialty crop competitiveness. Bases grant amounts on specialty crop production value. Sets minimum State grants at $100,000 per fiscal year. Authorizes FY 2005 through 2009 appropriations. Title II: Specialty Crop Advancement - Authorizes FY 2005 through 2009 appropriations for specialty crop technical assistance under the Farm Security and Rural Investment Act of 2002. Directs the Secretary to: (1) reduce the number of backlog permit applications for the export of agricultural commodities without diluting or diminishing existing personnel resources that are currently managing sanitary and phytosanitary issues. And (2) report annually respecting such backlog, including the number of applications and backlog applications processed to completion. Directs the Secretary to report on the significant sanitary and phytosanitary issues affecting specialty crop exports. Title III: Specialty Crop Research - Directs the Secretary to elevate the priority of methyl bromide alternative research and extension activities and reexamine the risks and benefits of extending the phase-out deadline. Authorizes FY 2005 through 2009 appropriations. Amends the Food, Agriculture, Conservation, and Trade Act of 1990 to include specialty crop research among high priority research and extension activities. Amends the National Agricultural Research, Extension, and Teaching Policy Act of 1977 to direct the National Agricultural Research, Extension, Education and Economics Advisory Board to establish a permanent specialty crops committee to study the scope of research, extension, and economics programs affecting the specialty crop industry. Title IV: Pest and Disease Response Fund - Establishes in the Treasury the Pest and Disease Response Fund. Authorizes FY 2005 through 2009 appropriations. Directs the Secretary to enter into an agreement with the National Plant Board for peer review of the procedures and standards of import and export requests under the Plant Protection Act, which shall address: (1) the preparation of risk assessments. And (2) the sufficiency, type, and quality of data that should be submitted to the Secretary. Authorizes FY 2005 through 2009 appropriations for maintenance of the Agricultural Marketing Service inspection training center in Fredericksburg, Virginia.