I

104TH CONGRESS

1ST SESSION H. R. 2794

To extend and improve the price support and production adjustment program

for peanuts, to establish standards for the inspection, handling, storage,

and labeling of all peanuts and peanut products sold in the United

States, and for other purposes.

IN THE HOUSE OF REPRESENTATIVES

DECEMBER 15, 1995

Mr. ROSE (for himself, Mr. STENHOLM, and Mr. TORRICELLI) introduced the

following bill; which was referred to the Committee on Agriculture, and

in addition to the Committee on Commerce, for a period to be subsequently determined by the Speaker, in each case for consideration of such

provisions as fall within the jurisdiction of the committee concerned

A BILL

To extend and improve the price support and production

adjustment program for peanuts, to establish standards

for the inspection, handling, storage, and labeling of

all peanuts and peanut products sold in the United

States, and for other purposes.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,

3 SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

4 (a) SHORT TITLE.—This Act may be cited as the

5 ‘‘Peanut Program Improvement Act of 1995’’.
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1 (b) TABLE OF CONTENTS.—The table of contents of

2 this Act is as follows:

Sec. 1. Short title; table of contents.

TITLE I—PEANUT PRICE SUPPORT AND PRODUCTION

ADJUSTMENT PROGRAM

Sec. 101. National poundage quotas and acreage allotments.

Sec. 102. Sale, lease, or transfer of farm poundage quota.

Sec. 103. Experimental and research programs.

Sec. 104. Marketing penalties.

Sec. 105. Price support program.

Sec. 106. Reports and records.

Sec. 107. Suspension of permanent program.

Sec. 108. Referendum regarding poundage quotas.

Sec. 109. Regulations.

Sec. 110. Administration.

TITLE II—PEANUT STANDARDS

Sec. 201. Inspection; quality assurance.

Sec. 202. Handling and storage.

Sec. 203. Labeling.

Sec. 204. Inspection and testing.

Sec. 205. Nutritional labeling.

Sec. 206. Peanut content.

Sec. 207. Plant diseases.

Sec. 208. Administration.

Sec. 209. Change of venue.

3 TITLE I—PEANUT PRICE SUPPORT AND

4 PRODUCTION ADJUSTMENT PROGRAM

5 SEC. 101. NATIONAL POUNDAGE QUOTAS AND ACREAGE AL6 LOTMENTS.

7 (a) IN GENERAL.—The section heading of section

8 358–1 of the Agricultural Adjustment Act of 1938 (7

9 U.S.C. 1358–1) is amended by striking ‘‘1991 THROUGH

10 1997 CROPS OF’’.

11 (b) NATIONAL POUNDAGE QUOTAS.—

12 (1) ESTABLISHMENT.—Section 358–1(a)(1) of

13 the Act is amended—
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1 (A) by striking ‘‘of the 1991 through 1997

2 marketing years’’ and inserting ‘‘marketing

3 year’’;

4 (B) by striking ‘‘each such marketing year

5 to domestic edible, seed, and related uses’’ and

6 inserting ‘‘the marketing year to domestic edi7 ble use and related uses, but excluding use as

8 seed’’;

9 (C) by striking the second sentence; and

10 (D) by adding at the end the following new

11 sentence: ‘‘In making estimates under this

12 paragraph for a marketing year, the Secretary

13 shall annually estimate and take into account

14 the quantity of peanuts and peanut products to

15 be imported into the United States for the mar16 keting year.’’.

17 (2) APPORTIONMENT.—Section 358–1(a)(3) of

18 the Act is amended by striking ‘‘1990’’ and inserting

19 ‘‘1995’’.

20 (c) FARM POUNDAGE QUOTA.—

21 (1) ESTABLISHMENT.—Section 358–1(b)(1)(A)

22 of the Act is amended—

23 (A) by striking ‘‘of the 1991 through 1997

24 marketing years’’ and inserting ‘‘marketing

25 year’’; and
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1 (B) in clause (i), by striking ‘‘1990’’ and

2 inserting ‘‘1995’’.

3 (2) QUANTITY.—Section 358–1(b)(1)(B) of the

4 Act is amended—

5 (A) by striking ‘‘of the 1991 through 1997

6 marketing years’’ and inserting ‘‘marketing

7 year’’; and

8 (B) by striking ‘‘including—’’ and all that

9 follows through ‘‘(ii) any’’ and inserting ‘‘in10 cluding any’’.

11 (3) ADJUSTMENTS.—Section 358–1(b)(2) of the

12 Act is amended—

13 (A) in subparagraph (A)—

14 (i) by striking ‘‘subparagraph (B) and

15 subject to subparagraph (D)’’ and insert16 ing ‘‘subparagraph (C)’’; and

17 (ii) by striking ‘‘of the 1991 through

18 1997 marketing years’’ and inserting

19 ‘‘marketing year’’;

20 (B) by striking subparagraph (B);

21 (C) by redesignating subparagraphs (C)

22 and (D) as subparagraphs (B) and (C), respec23 tively; and

24 (D) in subparagraph (B) (as so redesig25 nated), by striking ‘‘of the 1991 through 1997
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1 marketing years’’ and inserting ‘‘marketing

2 year’’.

3 (4) QUOTA NOT PRODUCED.—Section 358–

4 1(b)(3) of the Act is amended—

5 (A) in subparagraph (A), by striking ‘‘of

6 the 1991 through 1997 marketing years’’ and

7 inserting ‘‘marketing year’’; and

8 (B) in subparagraph (B), by striking ‘‘in9 clude—’’ and all that follows through ‘‘(ii) any’’

10 and inserting ‘‘include any’’.

11 (5) QUOTA CONSIDERED PRODUCED.—Section

12 358–1(b)(4) of the Act is amended—

13 (A) in subparagraph (A), by inserting ‘‘or’’

14 after the semicolon at the end; and

15 (B) by striking subparagraphs (B) and (C)

16 and inserting the following new subparagraph:

17 ‘‘(B) for only 1 of the 3 marketing years

18 immediately preceding the marketing year for

19 which the determination is being made, the

20 farm poundage quota for the farm was—

21 ‘‘(i) released voluntarily under para22 graph (7); or

23 ‘‘(ii) leased to another owner or opera24 tor of a farm within the same county for

25 transfer to the farm.’’.
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1 (6) ALLOCATION OF QUOTAS REDUCED OR RE2 LEASED.—Section 358–1(b)(6) of the Act is amend3 ed—

4 (A) in subparagraph (A), by striking ‘‘sub5 paragraphs (B) and (C), the total quantity of

6 the’’ and inserting ‘‘subparagraph (B),’’;

7 (B) in subparagraph (B)—

8 (i) by striking ‘‘Not more than 25

9 percent of the’’ and inserting ‘‘The’’; and

10 (ii) by adding at the end the follow11 ing: ‘‘Any farm quota pounds remaining

12 after allocation to farms under this sub13 paragraph shall be allocated under sub14 paragraph (A).’’; and

15 (C) by striking subparagraph (C).

16 (7) TEMPORARY QUOTA ALLOCATION FOR

17 SEED.—Section 358–1(b) of the Act is amended by

18 striking paragraph (8) and inserting the following

19 new paragraph:

20 ‘‘(8) TEMPORARY QUOTA ALLOCATION FOR

21 SEED.—For each marketing year and pursuant to

22 regulation, the Secretary shall make a temporary al23 location of poundage quota, for that marketing year

24 only, to each producer of peanuts on a farm, in addi25 tion to any farm poundage quota established under
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1 paragraph (1), in a quantity equal to the pounds of

2 seed peanuts planted by the producer on the farm.’’.

3 (8) TRANSFER OF ADDITIONAL PEANUTS.—Sec4 tion 358–1(b) of the Act is amended by striking

5 paragraph (9) and inserting the following new para6 graph:

7 ‘‘(9) TRANSFER OF ADDITIONAL PEANUTS.—

8 ‘‘(A) IN GENERAL.—Except as provided in

9 subparagraph (B), additional peanuts on a

10 farm from which the quota poundage was not

11 harvested and marketed may be transferred to

12 the quota loan pool for pricing purposes on

13 such basis as the Secretary shall provide by reg14 ulation.

15 ‘‘(B) LIMITATIONS.—The poundage of pea16 nuts transferred under subparagraph (A) shall

17 not exceed 25 percent of the total farm pound18 age quota, excluding pounds transferred in the

19 fall.

20 ‘‘(C) SUPPORT RATE.—Peanuts trans21 ferred under this paragraph shall be supported

22 at a rate of not less than 70 percent of the

23 quota support rate for the marketing years dur24 ing which the transfers occur.’’.
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1 (d) CROPS.—Section 358–1(f) of the Act is amended

2 by striking ‘‘1991 through 1997’’ and inserting ‘‘1996

3 through 2002’’.

4 SEC. 102. SALE, LEASE, OR TRANSFER OF FARM POUNDAGE

5 QUOTA.

6 (a) IN GENERAL.—The section heading of section

7 358b of the Agricultural Adjustment Act of 1938 (7

8 U.S.C. 1358b) is amended by striking ‘‘1991 THROUGH

9 1995 CROPS OF’’.

10 (b) SALE, LEASE, OR TRANSFER OF FARM POUND11 AGE QUOTA.—Section 358b(a) of the Act is amended—

12 (1) in paragraph (1)—

13 (A) by striking ‘‘(including any applicable

14 under marketings)’’ both places it appears;

15 (B) by redesignating subparagraphs (A)

16 and (B) as subparagraphs (B) and (C), respec17 tively;

18 (C) by inserting before subparagraph (B)

19 (as so redesignated) the following new subpara20 graph:

21 ‘‘(A) with the owner or operator of another

22 farm located within the same county or located

23 in a different county within the same State;’’;

24 (D) in subparagraph (B) (as so redesig25 nated), by striking ‘‘undermarketings and’’; and
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1 (E) by adding at the end the following:

2 ‘‘Fall transfers of quota pounds shall not affect

3 the farm quota history for the transferring or

4 receiving farm and shall not result in a reduc5 tion of the farm poundage quota on the trans6 ferring farm.’’;

7 (2) in paragraph (2)—

8 (A) by striking ‘‘(including any applicable

9 under marketings)’’;

10 (B) by striking ‘‘county or in a county con11 tiguous to the county in the same’’;

12 (C) by inserting before the period at the

13 end of the first sentence the following: ‘‘, if

14 both the transferring and the receiving farms

15 were under the control of the owner or operator

16 for at least 3 crop years prior to the crop year

17 in which the farm poundage quota is trans18 ferred’’; and

19 (D) by striking ‘‘the transferred quota is

20 produced or considered produced on the receiv21 ing farm’’ and inserting ‘‘sufficient acreage is

22 planted on the receiving farm to produce the

23 quota pounds transferred’’;

24 (3) in paragraph (3), by striking ‘‘(including

25 any applicable undermarketings)’’; and
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1 (4) by adding at the end the following new

2 paragraph:

3 ‘‘(4) TRANSFERS BY SALE IN STATES WITH

4 LARGE QUOTAS.—

5 ‘‘(A) IN GENERAL.—In the case of a State

6 for which the poundage quota allocated to the

7 State was 10,000 tons or greater for the pre8 vious year, the owner, or operator with permis9 sion of the owner, of a farm located in the

10 State for which a farm poundage quota has

11 been established under section 358–1 may sell

12 all or any part of the farm poundage quota to

13 any other eligible owner or operator of a farm

14 within the same State.

15 ‘‘(B) LIMITATIONS.—

16 ‘‘(i) 1996.—During calendar year

17 1996, not more than 15 percent of the

18 total poundage quota within a county as of

19 January 1, 1996, may be sold and trans20 ferred outside the county under this para21 graph.

22 ‘‘(ii) SUBSEQUENT YEARS.—During

23 calendar year 1997 and each subsequent

24 calendar year, not more than 5 percent of

25 the total poundage quota within a county
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1 as of January 1 of the calendar year may

2 be sold and transferred outside the county

3 under this paragraph.

4 ‘‘(iii) AGGREGATE LIMIT.—Not more

5 than an aggregate of 30 percent of the

6 total poundage quota within a county may

7 be sold and transferred outside the county

8 under this paragraph.

9 ‘‘(C) SUBSEQUENT LEASE OR SALE.—

10 Quota poundage sold and transferred under this

11 paragraph may not be leased or sold to another

12 farm owner or operator within the same State

13 for a period of 5 years following the original

14 transfer to the farm.’’.

15 (c) RECORD.—Section 358b(b)(3) of the Act is

16 amended by striking ‘‘committee of the county to which

17 the transfer is made and the committee determines’’ and

18 inserting ‘‘committees of the counties from and to which

19 the transfer is made and the committees determine’’.

20 (d) CROPS.—Section 358b(c) of the Act is amended

21 by striking ‘‘1991 through 1995’’ and inserting ‘‘1996

22 through 2002’’.

23 SEC. 103. EXPERIMENTAL AND RESEARCH PROGRAMS.

24 Section 358c(d) of the Agricultural Adjustment Act

25 of 1938 (7 U.S.C. 1358c(d)) is amended by striking
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1 ‘‘1991 through 1995’’ and inserting ‘‘1996 through

2 2002’’.

3 SEC. 104. MARKETING PENALTIES.

4 Section 358e of the Agricultural Adjustment Act of

5 1938 (7 U.S.C. 1359a) is amended—

6 (1) in the section heading, by striking ‘‘1991

7 THROUGH 1997 CROPS OF’’;

8 (2) in subsection (d)(6)(A), by inserting after

9 ‘‘If any additional peanuts’’ the following: ‘‘or pea10 nut products made from additional peanuts’’; and

11 (3) in subsection (i), by striking ‘‘1991 through

12 1997’’ and inserting ‘‘1996 through 2002’’.

13 SEC. 105. PRICE SUPPORT PROGRAM.

14 (a) IN GENERAL.—The section heading of section

15 108B of the Agricultural Act of 1949 (7 U.S.C. 1445c–

16 3) is amended by striking ‘‘1991 THROUGH 1997 CROPS

17 OF’’.

18 (b) QUOTA PEANUTS.—Section 108B(a) of the Act

19 is amended—

20 (1) in paragraph (1), by striking ‘‘for each of

21 the 1991 through 1997 crops’’; and

22 (2) in paragraph (2)—

23 (A) by striking ‘‘of the 1991 through 1997

24 crops’’ and inserting ‘‘crop’’; and
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1 (B) by striking ‘‘exceed’’ and inserting ‘‘be

2 increased, or decreased,’’.

3 (c) ADDITIONAL PEANUTS.—Section 108B(b)(1) of

4 the Act is amended by striking ‘‘for each of the 1991

5 through 1997 crops’’.

6 (d) AREA MARKETING ASSOCIATIONS.—Section

7 108B(c)(2)(A) of the Act is amended by inserting after

8 the first sentence the following: ‘‘Peanuts physically pro9 duced outside the State of New Mexico shall not be eligible

10 for entry into or participation in the New Mexico pools.’’.

11 (e) LOSSES.—Subsection (d) of section 108B of the

12 Act is amended to read as follows:

13 ‘‘(d) LOSSES.—

14 ‘‘(1) OTHER PRODUCERS IN SAME POOL.—

15 Losses in an area quota pool shall be offset by re16 ducing the gain of any producer in the pool by the

17 amount of pool gains attributable to the same pro18 ducer from the sale of additional peanuts for domes19 tic edible use or export.

20 ‘‘(2) QUOTA PEANUTS PLACED UNDER LOAN.—

21 Net gains on additional peanuts within an area

22 (other than net gains on additional peanuts in sepa23 rate type pools established under subsection

24 (c)(2)(A) for Valencia peanuts produced in New

25 Mexico) shall be first reduced to the extent of any
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1 loss by the Commodity Credit Corporation on quota

2 peanuts placed under loan in the area, in such man3 ner as the Secretary shall by regulation prescribe.

4 ‘‘(3) QUOTA LOAN POOLS.—

5 ‘‘(A) TRANSFERS FROM ADDITIONAL LOAN

6 POOLS.—The proceeds due any producer from

7 any pool shall be reduced by the amount of any

8 loss that is incurred with respect to peanuts

9 transferred from an additional loan pool to a

10 quota loan pool by the producer under section

11 358–1(b)(9) of the Agricultural Adjustment Act

12 of 1938 (7 U.S.C. 1358–1(b)(9)).

13 ‘‘(B) USE OF MARKETING ASSESS14 MENTS.—The Secretary shall use funds col15 lected under subsection (g) to offset further

16 losses in area quota pools. At the end of each

17 year, the Secretary shall transfer to the Treas18 ury the funds collected under subsection (g)

19 that the Secretary determines are not required

20 to cover losses in area quota pools.

21 ‘‘(C) CROSS COMPLIANCE.—Further losses

22 in area quota pools, other than losses incurred

23 as a result of transfers from additional loan

24 pools to quota loan pools under section 358–

25 1(b)(9) of the Agricultural Adjustment Act of
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1 1938 (7 U.S.C. 1358–1(b)(9)), shall be offset

2 by any gains or profits from pools in other pro3 duction areas (other than separate type pools

4 established under subsection (c)(2)(A) for Va5 lencia peanuts produced in New Mexico) in

6 such manner as the Secretary shall by regula7 tion prescribe.

8 ‘‘(D) INCREASED ASSESSMENTS.—If ac9 tions taken under subparagraphs (A) through

10 (C) are not sufficient to cover losses in area

11 pools, the Secretary shall increase the market12 ing assessment established under subsection (g)

13 by such amount as the Secretary considers nec14 essary to cover the losses. Amounts collected

15 under subsection (g) as a result of the in16 creased assessment shall be retained by the Sec17 retary to cover losses in the pool.’’.

18 (f) EXPORTS AND OTHER PEANUTS.—Section

19 108B(f) of the Act is amended by striking paragraph (2)

20 and inserting the following:

21 ‘‘(2) EXPORTS AND OTHER PEANUTS.—

22 ‘‘(A) IN GENERAL.—The Secretary shall

23 require that all peanuts, including peanuts im24 ported into the United States, meet all United

25 States quality standards under Marketing
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1 Agreement No. 146, regulating the quality of

2 domestically produced peanuts (under the Agri3 cultural Adjustment Act (7 U.S.C. 601 et seq.),

4 reenacted with amendments by the Agricultural

5 Marketing Agreement Act of 1937), and that

6 importers of the peanuts fully comply with in7 spection, handling, storage, and processing re8 quirements implemented under Marketing

9 Agreement No. 146.

10 ‘‘(B) EXPORTED PEANUTS.—The Sec11 retary shall ensure that peanuts produced for

12 the export market meet quality, inspection, han13 dling, storage, and processing requirements

14 under Marketing Agreement No. 146.’’.

15 (g) MARKETING ASSESSMENT.—Section 108B(g) of

16 the Act is amended—

17 (1) by striking paragraphs (1) and (2) and in18 serting the following:

19 ‘‘(1) IN GENERAL.—The Secretary shall pro20 vide, by regulation, for a nonrefundable marketing

21 assessment equal to 1.2 percent of the national aver22 age quota or additional peanut support rate per

23 pound, as applicable, on all peanuts sold in the

24 United States during each of the 1996 through 2002

25 marketing years.
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1 ‘‘(2) TREATMENT OF IMPORTED PEANUTS.—

2 For the purposes of determining the applicable as3 sessment rate under this section, imported peanuts

4 shall be treated as additional peanuts.

5 ‘‘(3) FIRST PURCHASERS.—

6 ‘‘(A) DEFINITION OF FIRST PURCHASER.—

7 In this paragraph, the term ‘first purchaser’

8 means a person acquiring peanuts from a pro9 ducer, or a person that imports peanuts, except

10 that in the case of peanuts forfeited by a pro11 ducer to the Commodity Credit Corporation, the

12 term means the person acquiring the peanuts

13 from the Commodity Credit Corporation.

14 ‘‘(B) ADMINISTRATION.—Except as pro15 vided in subparagraph (C) and paragraphs (3)

16 and (4), the first purchaser shall—

17 ‘‘(i) collect from the producer a mar18 keting assessment equal to the quantity of

19 peanuts acquired multiplied by .6 percent

20 of the applicable national average support

21 rate;

22 ‘‘(ii) pay, in addition to the amount

23 collected under clause (i), a marketing as24 sessment in an amount equal to the quan25 tity of peanuts acquired multiplied by .6
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1 percent of the applicable national average

2 support rate; and

3 ‘‘(iii) remit the amounts required

4 under clauses (i) and (ii) to the Commod5 ity Credit Corporation in a manner speci6 fied by the Secretary.

7 ‘‘(C) IMPORTED PEANUTS.—In the case of

8 imported peanuts, the first purchaser shall pay

9 to the Commodity Credit Corporation, in a

10 manner specified by the Secretary, a marketing

11 assessment in an amount equal to the quantity

12 of peanuts acquired multiplied by 1.2 percent of

13 the national average support rate for additional

14 peanuts.’’; and

15 (2) by adding at the end the following new

16 paragraph:

17 ‘‘(7) USE OF FUNDS.—Funds collected under

18 this subsection shall be used by the Secretary to off19 set the costs of operating the peanut price support

20 program.’’.

21 (h) CROPS.—Section 108B(h) of the Act is amend22 ed—

23 (1) by striking ‘‘Notwithstanding’’ and insert24 ing ‘‘Except as provided in subsection (g) and not25 withstanding’’; and
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1 (2) by striking ‘‘1991 through 1997’’ and in2 serting ‘‘1996 through 2002’’.

3 SEC. 106. REPORTS AND RECORDS.

4 Effective only for the 1996 through 2002 crops of

5 peanuts, the first sentence of section 373(a) of the Agri6 cultural Adjustment Act of 1938 (7 U.S.C. 1373(a)) is

7 amended by inserting before ‘‘all brokers and dealers in

8 peanuts’’ the following: ‘‘all producers engaged in the pro9 duction of peanuts,’’.

10 SEC. 107. SUSPENSION OF PERMANENT PROGRAM.

11 (a) MARKETING QUOTAS AND ACREAGE ALLOT12 MENTS.—The following provisions of the Agricultural Ad13 justment Act of 1938 shall not be applicable to the 1996

14 through 2002 crops of peanuts:

15 (1) Subsections (a) through (j) of section 358

16 (7 U.S.C. 1358).

17 (2) Subsections (a) through (h) of section 358a

18 (7 U.S.C. 1358a).

19 (3) Subsections (a), (b), (d), and (e) of section

20 359 (7 U.S.C. 1359).

21 (4) Part I of subtitle C of title III (7 U.S.C.

22 1361 et seq.).

23 (5) Section 371 (7 U.S.C. 1371).
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1 (b) PRICE SUPPORT.—Section 101 of the Agricul2 tural Act of 1949 (7 U.S.C. 1441) shall not be applicable

3 to the 1996 through 2002 crops of peanuts.

4 SEC. 108. REFERENDUM REGARDING POUNDAGE QUOTAS.

5 Section 358–1(d) of the Agricultural Adjustment Act

6 of 1938 (7 U.S.C. 13581(d)) is amended by striking para7 graph (1) and inserting the following new paragraph:

8 ‘‘(1) IN GENERAL.—Each calendar year, the

9 Secretary shall conduct a referendum of producers

10 engaged in the production of quota peanuts in the

11 calendar year in which the referendum is held to de12 termine whether the producers are in favor of or op13 posed to poundage quotas with respect to the crops

14 of peanuts produced in the seven calendar years im15 mediately following the year in which the referen16 dum is held, except that, if as many as two-thirds

17 of the producers voting in any referendum vote in

18 favor of poundage quotas, no referendum shall be

19 held with respect to quotas for the next six years of

20 the period. If the referendum required in 1995 is

21 completed or underway before the date of the enact22 ment of the Peanut Program Improvement Act of

23 1995, the referendum shall be deemed to cover cal24 endar years 1996 through 2002, rather than just

25 calendar years 1996 and 1997. In the case of any
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1 referendum required in calendar years 1996 through

2 2002, the Secretary shall conduct the referendum

3 not later than December 15 of the calendar year in

4 which the referendum is required.’’.

5 SEC. 109. REGULATIONS.

6 The Secretary of Agriculture shall issue such regula7 tions as are necessary to carry out this title and the

8 amendments made by this title. In issuing the regulations,

9 the Secretary—

10 (1) is encouraged to comply with subchapter II

11 of chapter 5 of title 5, United States Code;

12 (2) shall provide public notice through the Fed13 eral Register of any such proposed regulations; and

14 (3) shall allow adequate time for written public

15 comment prior to the formulation and issuance of

16 any final regulations.

17 SEC. 110. ADMINISTRATION.

18 The first paragraph of section 32 of the Act entitled

19 ‘‘An Act to amend the Agricultural Adjustment Act, and

20 for other purposes’’, approved August 24, 1935 (7 U.S.C.

21 612c), is amended—

22 (1) in the first sentence, by striking ‘‘30 per

23 centum’’ and inserting ‘‘30 percent (or, in the case

24 of duties collected with respect to an import that is

25 subject to a tariff-rate quota, 100 percent)’’; and
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1 (2) in the second sentence—

2 (A) by striking ‘‘and (3)’’ and inserting

3 ‘‘(3)’’; and

4 (B) by inserting before the period at the

5 end the following: ‘‘; and (4) offset the costs of

6 operating a program to provide price support

7 for domestically produced peanuts’’.

8 TITLE II—PEANUT STANDARDS

9 SEC. 201. INSPECTION; QUALITY ASSURANCE.

10 (a) INITIAL ENTRY.—The Secretary of Agriculture

11 (referred to in this title as the ‘‘Secretary’’) shall require

12 all peanuts and peanut products sold in the United States

13 to be initially placed in a bonded, licensed warehouse ap14 proved by the Secretary for the purpose of inspection and

15 grading by the Secretary, the Commissioner of the Food

16 and Drug Administration, and the heads of other appro17 priate agencies of the United States.

18 (b) PRELIMINARY INSPECTION.—Peanuts and peanut

19 products shall be held in the warehouse until inspected

20 by the Secretary, the Commissioner of the Food and Drug

21 Administration, or the head of another appropriate agency

22 of the United States, for chemical residues, general clean23 liness, disease, size, aflatoxin, stripe virus, and other

24 harmful conditions, and an assurance of compliance with

25 all grade and quality standards specified under Marketing
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1 Agreement No. 146, regulating the quality of domestically

2 produced peanuts (under the Agricultural Adjustment Act

3 (7 U.S.C. 601 et seq.), reenacted with amendments by the

4 Agricultural Marketing Agreement Act of 1937).

5 (c) SEPARATION OF LOTS.—All imported peanuts

6 shall be maintained separately from, and shall not be com7 mingled with, domestically produced peanuts in the ware8 house.

9 (d) ORIGIN OF PEANUT PRODUCTS.—

10 (1) LABELING.—A peanut product shall be la11 beled with a label that indicates the origin of the

12 peanuts contained in the product.

13 (2) SOURCE.—No peanut product may contain

14 both imported and domestically produced peanuts.

15 (3) IMPORTED PEANUT PRODUCTS.—The first

16 seller of an imported peanut product shall certify

17 that the product is made from raw peanuts that

18 meet the same quality and grade standards that

19 apply to domestically produced peanuts.

20 (e) DOCUMENTATION.—No peanuts or peanut prod21 ucts may be transferred, shipped, or otherwise released

22 from a warehouse described in subsection (a) unless ac23 companied by a United States Government inspection cer24 tificate that certifies compliance with this section.
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1 SEC. 202. HANDLING AND STORAGE.

2 (a) TEMPERATURE AND HUMIDITY.—The Secretary

3 shall require all shelled peanuts sold in the United States

4 to be maintained at a temperature of not more than 37

5 degrees Fahrenheit and a humidity range of 60 to 68 per6 cent at all times during handling and storage prior to sale

7 and shipment.

8 (b) CONTAINERS.—The peanuts shall be shipped in

9 a container that provides the maximum practicable protec10 tion against moisture and insect infestation.

11 (c) IN-SHELL PEANUTS.—The Secretary shall re12 quire that all in-shell peanuts be reduced to a moisture

13 level not exceeding 10 percent immediately on being har14 vested and be stored in a facility that will ensure quality

15 maintenance and will provide proper ventilation at all

16 times prior to sale and shipment.

17 SEC. 203. LABELING.

18 The Secretary shall require that all peanuts and pea19 nut products sold in the United States contain labeling

20 that lists the country or countries in which the peanuts,

21 including all peanuts used to manufacture the peanut

22 products, were produced.

23 SEC. 204. INSPECTION AND TESTING.

24 (a) IN GENERAL.—All peanuts and peanut products

25 sold in the United States shall be inspected and tested

26 for grade and quality.
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1 (b) CERTIFICATION.—All peanuts or peanut products

2 offered for sale in, or imported into, the United States

3 shall be accompanied by a certification by the first seller

4 or importer that the peanuts or peanut products do not

5 contain residues of any pesticide not approved for use in,

6 or importation into, the United States.

7 SEC. 205. NUTRITIONAL LABELING.

8 The Secretary shall require all peanuts and peanut

9 products sold in the United States to contain complete nu10 tritional labeling information as required under the Fed11 eral Food, Drug, and Cosmetic Act (21 U.S.C. 321 et

12 seq.).

13 SEC. 206. PEANUT CONTENT.

14 (a) OFFSET AGAINST HTS QUANTITY.—The actual

15 quantity of peanuts, by weight, used to manufacture, and

16 ultimately contained in, peanut products imported into the

17 United States shall be accounted for and offset against

18 the total quantity of peanut imports allowed under the in19 quota quantity of the tariff-rate quota established for pea20 nuts under the Harmonized Tariff Schedule of the United

21 States.

22 (b) VERIFICATION.—The Secretary shall establish

23 standards and procedures for the purpose of verifying the

24 actual peanut content of peanut products imported into

25 the United States.
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1 SEC. 207. PLANT DISEASES.

2 The Secretary, in consultation with the heads of other

3 appropriate agencies of the United States, shall ensure

4 that all peanuts in the domestic edible market are in5 spected and tested to ensure that they are free of all plant

6 diseases.

7 SEC. 208. ADMINISTRATION.

8 (a) FEES.—The Secretary shall by regulation fix and

9 collect fees and charges to cover the costs of any inspec10 tion or testing performed under this title.

11 (b) CERTIFICATION.—

12 (1) IN GENERAL.—The Secretary may require

13 the first seller of peanuts sold in the United States

14 to certify that the peanuts comply with this title.

15 (2) FRAUD AND FALSE STATEMENTS.—Section

16 1001 of title 18, United States Code, shall apply to

17 a certification made under this title.

18 (c) STANDARDS AND PROCEDURES.—In consultation

19 with the heads of other appropriate agencies of the United

20 States, the Secretary shall establish standards and proce21 dures to provide for the enforcement of, and ensure com22 pliance with, this title.

23 (d) FAILURE TO MEET STANDARDS.—Peanuts or

24 peanut products that fail to meet standards established

25 under this title shall be returned to the seller and exported
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1 or crushed pursuant to section 358e(d) of the Agricultural

2 Adjustment Act of 1938 (7 U.S.C. 1359a(d)).

3 SEC. 209. CHANGE OF VENUE.

4 In any case in which an area pool or a marketing

5 association brings, joins, or seeks to join a civil action in

6 a United States district court to enforce this title, the dis7 trict court may not transfer the action to any other district

8 or division over the objection of the pool or marketing as9 sociation.

Æ

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