H. R. 3242

One Hundred Eighth Congress

of the

United States of America

AT THE SECOND SESSION

Begun and held at the City of Washington on Tuesday,

the twentieth day of January, two thousand and four

An Act

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.

Be it enacted by the Senate and House of Representatives of

the United States of America in Congress assembled,

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:
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(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
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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 author- ized 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
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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;
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‘‘(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.
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(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.