IB 

Union Calendar No. 467

108TH CONGRESS 

2D SESSION H. R. 3242

[Report No. 108–750, Part I] 

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 Statesgrown specialty crops, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

OCTOBER 2, 2003

Mr. OSE (for himself, Mr. DOOLEY of California, Mr. ACEVEDO-VILA ́, Mr. 

ENGLISH, Mr. FILNER, Mrs. KELLY, Mr. KOLBE, Mr. LARSEN of Washington, Mr. MCHUGH, Mr. NUNES, Mr. RADANOVICH, Mr. SCOTT of 

Georgia, Mr. THOMPSON of California, Mr. GALLEGLY, Mr. CARDOZA, 

Mr. DEFAZIO, Mr. KINGSTON, Mr. WU, Mr. HINOJOSA, and Mr. FARR) 

introduced the following bill; which was referred to the Committee on Agriculture, and in addition to the Committee on Ways and Means, 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 

OCTOBER 6, 2004

Additional sponsors: Mr. CALVERT, Mr. GOODE, Mr. PETERSON of Minnesota, 

Mr. HOUGHTON, Mr. ETHERIDGE, Mr. PASTOR, Mr. THOMPSON of Mississippi, Mr. FOLEY, Mrs. BONO, Mr. OBERSTAR, Mrs. CAPPS, Mr. 

UPTON, Mr. DINGELL, Ms. HARRIS, Mr. CAMP, Mr. RODRIGUEZ, Mr. 

LUCAS of Kentucky, Mr. POMBO, Ms. WOOLSEY, Mr. LEWIS of Kentucky, 

Ms. MCCOLLUM, Mrs. MUSGRAVE, Mr. BEAUPREZ, Mr. UDALL of Colorado, Mr. WILSON of South Carolina, Mr. KILDEE, Mr. RAHALL, Mr. 

GEORGE MILLER of California, Mr. PUTNAM, Mr. CASE, Mr. SPRATT, 

Mr. MICHAUD, Mr. HERGER, Mr. HINCHEY, Mrs. MILLER of Michigan, 

Mr. ABERCROMBIE, Mr. BILIRAKIS, Mr. BACA, Mr. GRIJALVA, Ms. 

SLAUGHTER, Mr. POMEROY, Mr. LAMPSON, Mr. ALLEN, Mr. HONDA, Mr. 

MCINTYRE, Mr. BLUMENAUER, Mr. ISSA, Ms. KAPTUR, Mr. JENKINS, 

Mr. BISHOP of New York, Mr. LOBIONDO, Mr. ANDREWS, Mr. HASTINGS

of Washington, Mr. STUPAK, Mr. MORAN of Virginia, Mr. COLLINS, Ms. 
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LOFGREN, Mr. ISAKSON, Mr. BURR, Mr. RUPPERSBERGER, Mr. WALDEN

of Oregon, Mr. BOUCHER, Mr. SHERWOOD, Ms. ROS-LEHTINEN, Ms. 

GINNY BROWN-WAITE of Florda, Mr. MATSUI, Ms. HOOLEY of Oregon, 

Mr. PRICE of North Carolina, Mr. PLATTS, Mr. GORDON, Ms. LEE, Mr. 

GILCHREST, Mr. HOYER, Mrs. EMERSON, Mr. MILLER of North Carolina, 

Mr. SHUSTER, Mr. TAYLOR of North Carolina, Mrs. TAUSCHER, Mr. SIMMONS, Mr. LARSON of Connecticut, Mr. HOLDEN, Ms. ESHOO, Mr. KENNEDY of Rhode Island, Ms. DELAURO, Mr. PETERSON of Pennsylvania, 

Mr. DOOLITTLE, Mr. CLYBURN, Mr. WAXMAN, Ms. ROYBAL-ALLARD, 

Mrs. DAVIS of California, Ms. HARMAN, Ms. MILLENDER-MCDONALD, 

Mrs. NAPOLITANO, Ms. PELOSI, Ms. LORETTA SANCHEZ of California, 

Mr. SCHIFF, Mr. SHERMAN, Ms. SOLIS, Ms. WATSON, Ms. LINDA T. 

SA ́NCHEZ of California, Mr. LANTOS, Mr. BERMAN, Mr. BECERRA, and 

Mr. BUTTERFIELD

OCTOBER 6, 2004

Reported from the Committee on Agriculture with an amendment 

[Strike out all after the enacting clause and insert the part printed in italic] 

OCTOBER 6, 2004

Referral to the Committee on Ways and Means extended for a period ending 

not later than October 6, 2004

OCTOBER 6, 2004

The Committee on Ways and Means discharged; committed to the Committee 

of the Whole House on the State of the Union and ordered to be printed 

[For text of introduced bill, see copy of bill as introduced on October 2, 2003] 

A BILL

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.

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

2 This Act may be cited as the ‘‘Specialty Crops Com3 petitiveness Act of 2004’’. 

4 SEC. 2. FINDINGS AND PURPOSE. 

5 (a) FINDINGS.—Congress finds the following: 

6 (1) A secure domestic food supply is a national 

7 security imperative for the United States. 

8 (2) A competitive specialty crop industry in the 

9 United States is necessary for the production of an 

10 abundant, affordable supply of highly nutritious 

11 fruits, vegetables, and other specialty crops, which are 

12 vital to the health and well-being of all Americans. 

13 (3) Increased consumption of specialty crops will 

14 provide tremendous health and economic benefits to 

15 both consumers and specialty crop growers. 

16 (4) Specialty crop growers believe that there are 

17 numerous areas of Federal agriculture policy that 

18 could be improved to promote increased consumption 

19 of specialty crops and increase the competitiveness of 

20 producers in the efficient production of affordable spe21 cialty crops in the United States. 

22 (5) As the globalization of markets continues, it 

23 is becoming increasingly difficult for United States 

24 producers to compete against heavily subsidized for25 eign producers in both the domestic and foreign mar26 kets. 
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1 (6) United States specialty crop producers also 

2 continue to face serious tariff and non-tariff trade 

3 barriers in many export markets. 

4 (b) PURPOSE.—It is the purpose of this Act to make 

5 necessary changes in Federal agriculture policy to accom6 plish the goals of increasing fruit, vegetable, and nut con7 sumption and improving the competitiveness of United 

8 States specialty crop producers. 

9 SEC. 3. DEFINITIONS. 

10 In this Act: 

11 (1) The term ‘‘specialty crop’’ means fruits and 

12 vegetables, tree nuts, dried fruits, and nursery crops 

13 (including floriculture). 

14 (2) The term ‘‘State’’ means the several States, 

15 the District of Columbia, and the Commonwealth of 

16 Puerto Rico. 

17 (3) The term ‘‘State department of agriculture’’ 

18 means the agency, commission, or department of a 

19 State government responsible for agriculture within 

20 the State.

21 TITLE I—STATE ASSISTANCE 

22 FOR SPECIALTY CROPS 

23 SEC. 101. SPECIALTY CROP BLOCK GRANTS. 

24 (a) AVAILABILITY AND PURPOSE OF GRANTS.—Subject 

25 to the appropriation of funds to carry out this section, the 
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1 Secretary of Agriculture shall make grants to States for 

2 each of the fiscal years 2005 through 2009 to be used by 

3 State departments of agriculture solely to enhance the com4 petitiveness of specialty crops. 

5 (b) GRANTS BASED ON VALUE OF PRODUCTION.—Sub6 ject to subsection (c), the amount of the grant for a fiscal 

7 year to a State under this section shall bear the same ratio 

8 to the total amount appropriated pursuant to the author9 ization of appropriations in subsection (i) for that fiscal 

10 year as the value of specialty crop production in the State 

11 during the preceding calendar year bears to the value of 

12 specialty crop production during the preceding calendar 

13 year in all States whose application for a grant for that 

14 fiscal year is accepted by the Secretary under subsection 

15 (f). 

16 (c) MINIMUM GRANT AMOUNT.—Subject to the appro17 priation of sufficient funds to carry out this subsection, 

18 each State shall receive at least $100,000 each fiscal year 

19 as a grant under this section notwithstanding the amount 

20 calculated under subsection (b) for the State. 

21 (d) ELIGIBILITY.—To be eligible to receive a grant 

22 under this section, a State department of agriculture shall 

23 prepare and submit, for approval by the Secretary of Agri24 culture, an application at such time, in such a manner, 
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1 and containing such information as the Secretary shall re2 quire by regulation, including—

3 (1) a State plan that meets the requirements of 

4 subsection (e); 

5 (2) an assurance that the State will comply with 

6 the requirements of the plan; and 

7 (3) an assurance that grant funds received under 

8 this section shall supplement the expenditure of State 

9 funds in support of specialty crops grown in that 

10 State, rather than replace State funds. 

11 (e) PLAN REQUIREMENTS.—The State plan shall iden12 tify the lead agency charged with the responsibility of car13 rying out the plan and indicate how the grant funds will 

14 be utilized to enhance the competitiveness of specialty crops. 

15 (f) REVIEW OF APPLICATION.—In reviewing the appli16 cation of a State submitted under subsection (d), the Sec17 retary of Agriculture shall ensure that the State plan would 

18 carry out the purpose of grant program, as specified in sub19 section (a). The Secretary may accept or reject applications 

20 for a grant under this section. 

21 (g) EFFECT OF NONCOMPLIANCE.—If the Secretary of 

22 Agriculture, after reasonable notice to a State, finds that 

23 there has been a failure by the State to comply substantially 

24 with any provision or requirement of the State plan, the 
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1 Secretary may disqualify, for one or more years, the State 

2 from receipt of future grants under this section. 

3 (h) AUDIT REQUIREMENTS.—For each year that a 

4 State receives a grant under this section, the State shall 

5 conduct an audit of the expenditures of grant funds by the 

6 State. Not later than 30 days after the completion of the 

7 audit, the State shall submit a copy of the audit to the Sec8 retary of Agriculture.

9 (i) AUTHORIZATION OF APPROPRIATIONS.—For each 

10 of the fiscal years 2005 through 2009, there is authorized 

11 to be appropriated to the Secretary of Agriculture 

12 $44,500,000 to make grants under this section. 

13 TITLE II—SPECIALTY CROP 

14 ADVANCEMENT 

15 SEC. 201. TECHNICAL ASSISTANCE FOR SPECIALTY CROPS. 

16 For each of the fiscal years 2005 through 2009, there 

17 is authorized to be appropriated to the Secretary of Agri18 culture $2,000,000 to carry out section 3205 of the Farm 

19 Security and Rural Investment Act of 2002 (7 U.S.C. 

20 5680). Amounts appropriated pursuant to this authoriza21 tion of appropriations shall be in addition to any other 

22 funds made available to carry out such section. 
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1 SEC. 202. REDUCTION IN BACKLOG OF AGRICULTURAL EX2 PORT PETITIONS. 

3 (a) REDUCTION EFFORTS.—To the maximum extent 

4 practicable, the Secretary of Agriculture shall endeavor to 

5 reduce the backlog in the number of applications for permits 

6 for the export of United States agricultural commodities. 

7 In achieving such reduction, the Secretary shall not dilute 

8 or diminish existing personnel resources that are currently 

9 managing sanitary and phytosanitary issues for—

10 (1) United States agricultural commodities for 

11 which exportation is sought; and 

12 (2) interdiction and control of pests and diseases, 

13 including for the evaluation of pest and disease con14 cerns of foreign agricultural commodities for which 

15 importation is sought. 

16 (b) REPORT.—The Secretary of Agriculture shall sub17 mit to the Committee on Agriculture of the House of Rep18 resentatives and the Committee on Agriculture, Nutrition, 

19 and Forestry of the Senate an annual report specifying, for 

20 the year covered by the report—

21 (1) the total number of applications processed to 

22 completion; 

23 (2) the number of backlog applications processed 

24 to completion; 

25 (3) the percentage of backlog applications proc26 essed to completion; and 
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1 (4) the number of backlog applications remain2 ing. 

3 SEC. 203. REPORT ON SANITARY AND PHYTOSANITARY EX4 PORT ISSUES. 

5 Not later than 180 days after the date of the enactment 

6 of this Act, the Secretary of Agriculture shall submit to the 

7 Committee on Agriculture of the House of Representatives 

8 and the Committee on Agriculture, Nutrition, and Forestry 

9 of the Senate a report on significant sanitary and 

10 phytosanitary issues that affect the export of specialty 

11 crops. 

12 TITLE III—SPECIALTY CROP 

13 RESEARCH 

14 SEC. 301. METHYL BROMIDE ALTERNATIVES. 

15 (a) PRIORITY.—The Secretary of Agriculture shall ele16 vate the priority of current methyl bromide alternative re17 search and extension activities and reexamine the risks and 

18 benefits of extending the phase-out deadline in effect on the 

19 date of the enactment of this Act, including the estimated 

20 cost to the grower or processor associated with any alter21 natives proposed. 

22 (b) AUTHORIZATION OF APPROPRIATIONS.—For each 

23 of the fiscal years 2005 through 2009, there is authorized 

24 to be appropriated to the Secretary of Agriculture 

25 $5,000,000 to carry out this section. 
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1 SEC. 302. NATIONAL SPECIALTY CROP RESEARCH PRO2 GRAM. 

3 Section 1672(e) of the Food, Agriculture, Conservation, 

4 and Trade Act of 1990 (7 U.S.C. 5925(e)) is amended by 

5 adding at the end of the following new paragraph: 

6 ‘‘(45) SPECIALTY CROP RESEARCH.—Research 

7 and extension grants may be made under this section 

8 for the purpose of improving the efficiency, produc9 tivity, and profitability of specialty crop production 

10 in the United States.’’. 

11 SEC. 303. SPECIALTY CROP COMMITTEE. 

12 The National Agricultural Research, Extension, and 

13 Teaching Policy Act of 1977 is amended by inserting after 

14 section 1408 (7 U.S.C. 3123) the following new section: 

15 ‘‘SEC. 1408A. SPECIALTY CROP COMMITTEE. 

16 ‘‘(a) ESTABLISHMENT.—Not later than 90 days after 

17 the date of the enactment of the Specialty Crops Competi18 tiveness Act of 2004, the executive committee of the Advisory 

19 Board shall establish, and appoint the initial members of, 

20 a permanent specialty crops committee that will be respon21 sible for studying the scope and effectiveness of research, ex22 tension, and economics programs affecting the specialty 

23 crop industry. 

24 ‘‘(b) MEMBERS.—Individuals who are not members of 

25 the Advisory Board may be appointed as members of the 

26 specialty crops committee. Members of the specialty crops 
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1 committee shall serve at the discretion of the executive com2 mittee. 

3 ‘‘(c) ANNUAL COMMITTEE REPORT.—Not later than 

4 180 days after the establishment of the specialty crops com5 mittee, and annually thereafter, the specialty crops com6 mittee shall submit to the Advisory Board a report con7 taining the findings of its study under subsection (a). The 

8 specialty crops committee shall include in each report rec9 ommendations regarding the following: 

10 ‘‘(1) Measures designed to improve the efficiency, 

11 productivity, and profitability of specialty crop pro12 duction in the United States. 

13 ‘‘(2) Measures designed to improve competitive14 ness in research, extension, and economics programs 

15 affecting the specialty crop industry. 

16 ‘‘(3) Programs that would— 

17 ‘‘(A) enhance the quality and shelf-life of 

18 fresh fruits and vegetables, including their taste 

19 and appearance; 

20 ‘‘(B) develop new crop protection tools and 

21 expand the applicability and cost-effectiveness of 

22 integrated pest management; 

23 ‘‘(C) prevent the introduction of foreign 

24 invasive pests and diseases; 
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1 ‘‘(D) develop new products and new uses of 

2 specialty crops; 

3 ‘‘(E) develop new and improved marketing 

4 tools for specialty crops; 

5 ‘‘(F) enhance food safety regarding specialty 

6 crops; 

7 ‘‘(G) improve mechanization of production 

8 practices; and 

9 ‘‘(H) enhance irrigation techniques used in 

10 specialty crop production. 

11 ‘‘(d) CONSIDERATION BY SECRETARY.—In preparing 

12 the annual budget recommendations for the Department of 

13 Agriculture, the Secretary shall take into consideration 

14 those findings and recommendations contained in the most15 recent report of the specialty crops committee that are 

16 adopted by the Advisory Board. 

17 ‘‘(e) ANNUAL REPORT BY SECRETARY.—In the budget 

18 material submitted to Congress by the Secretary in connec19 tion with the budget submitted pursuant to section 1105 

20 of title 31, United States Code, for a fiscal year, the Sec21 retary shall include a report describing how the Secretary 

22 addressed each recommendation of the specialty crops com23 mittee described in subsection (d).’’. 
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1 TITLE IV—PEST AND DISEASE 

2 RESPONSE FUND 

3 SEC. 401. PEST AND DISEASE RESPONSE FUND. 

4 (a) ESTABLISHMENT.—There is established on the 

5 books of the Treasury an account to be known as the ‘‘Pest 

6 and Disease Response Fund’’. There shall be deposited into 

7 the Fund any proceeds received by the Secretary of Agri8 culture as reimbursement for services provided by the Sec9 retary using amounts in the Fund. 

10 (b) AVAILABILITY.—Amounts in the Fund shall re11 main available until expended. 

12 (c) USE OF FUND.—In implementing the Animal 

13 Health Protection Act (7 U.S.C. 8301 et seq.) and the Plant 

14 Protection Act (7 U.S.C. 7701 et seq.), the Secretary of Ag15 riculture shall have complete discretion regarding the use 

16 of amounts in the Fund to support emergency eradication 

17 and research activities in response to economic and health 

18 threats posed by pests and diseases affecting agricultural 

19 commodities. 

20 (d) AUTHORIZATION OF APPROPRIATIONS.—For each 

21 of the fiscal years 2005 through 2009, there is authorized 

22 to be appropriated to the Secretary of Agriculture 

23 $1,000,000 for deposit in the Fund. 
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1 SEC. 402. IMPORT AND EXPORT REGULATION REVIEW. 

2 (a) PEER REVIEW.—The Secretary of Agriculture shall 

3 enter into an agreement with the National Plant Board to 

4 obtain a peer review of the procedures and standards that 

5 govern the consideration of import and export requests 

6 under section 412 of the Plant Protection Act (7 U.S.C. 

7 7712). The peer review shall be consistent with the guidance 

8 by the Office of Management and Budget pertaining to peer 

9 review and information quality. 

10 (b) ELEMENTS OF REVIEW.—The peer review required 

11 by subsection (a) shall address, at a minimum—

12 (1) the preparation of risk assessments; and 

13 (2) the sufficiency, type, and quality of data that 

14 should be submitted to the Secretary of Agriculture. 

15 (c) SUBMISSION OF RESULTS.—The results of the peer 

16 review conducted under subsection (a) shall be submitted 

17 to the Secretary and Congress not later than 180 days after 

18 the date of the enactment of this Act. 

19 SEC. 403. MAINTENANCE OF FREDERICKSBURG INSPEC20 TION TRAINING CENTER. 

21 For each of the fiscal years 2005 through 2009, there 

22 is authorized to be appropriated to the Secretary of Agri23 culture $1,500,000 for the maintenance of the Agricultural 

24 Marketing Service inspection training center in Fredericks25 burg, Virginia.

Union Calendar No. 467

108TH CONGRESS 

2D SESSION H. R. 3242

[Report No. 108–750, Part I] 

A BILL

To ensure an abundant and affordable supply of 

and for other purposes. tiveness of United States-grown specialty crops, international markets by enhancing the competispecialty crops for American consumers and highly nutritious fruits, vegetables, and other 

OCTOBER 6, 2004

Reported from the Committee on Agriculture with an 

amendment 

OCTOBER 6, 2004

Referral to the Committee on Ways and Means extended 

for a period ending not later than October 6, 2004

OCTOBER 6, 2004

The Committee on Ways and Means discharged; comState of the Union and ordered to be printed mitted to the Committee of the Whole House on the