II 

108TH CONGRESS 

2D SESSION H. R. 3242

IN THE SENATE OF THE UNITED STATES 

OCTOBER 7, 2004

Received 

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.
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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. 

4 This Act may be cited as the ‘‘Specialty Crops Com5 petitiveness Act of 2004’’. 

6 SEC. 2. FINDINGS AND PURPOSE. 

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

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

9 security imperative for the United States. 

10 (2) A competitive specialty crop industry in the 

11 United States is necessary for the production of an 

12 abundant, affordable supply of highly nutritious 

13 fruits, vegetables, and other specialty crops, which 

14 are vital to the health and well-being of all Ameri15 cans. 

16 (3) Increased consumption of specialty crops 

17 will provide tremendous health and economic bene18 fits to both consumers and specialty crop growers. 

19 (4) Specialty crop growers believe that there are 

20 numerous areas of Federal agriculture policy that 

21 could be improved to promote increased consumption 

22 of specialty crops and increase the competitiveness 

23 of producers in the efficient production of affordable 

24 specialty crops in the United States. 
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1 (5) As the globalization of markets continues, it 

2 is becoming increasingly difficult for United States 

3 producers to compete against heavily subsidized for4 eign producers in both the domestic and foreign 

5 markets. 

6 (6) United States specialty crop producers also 

7 continue to face serious tariff and non-tariff trade 

8 barriers in many export markets. 

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

10 necessary changes in Federal agriculture policy to accom11 plish the goals of increasing fruit, vegetable, and nut con12 sumption and improving the competitiveness of United 

13 States specialty crop producers. 

14 SEC. 3. DEFINITIONS. 

15 In this Act: 

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

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

18 (including floriculture). 

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

20 the District of Columbia, and the Commonwealth of 

21 Puerto Rico. 

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

23 means the agency, commission, or department of a 

24 State government responsible for agriculture within 

25 the State. 
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1 TITLE I—STATE ASSISTANCE 

2 FOR SPECIALTY CROPS 

3 SEC. 101. SPECIALTY CROP BLOCK GRANTS. 

4 (a) AVAILABILITY AND PURPOSE OF GRANTS.—Sub5 ject to the appropriation of funds to carry out this section, 

6 the Secretary of Agriculture shall make grants to States 

7 for each of the fiscal years 2005 through 2009 to be used 

8 by State departments of agriculture solely to enhance the 

9 competitiveness of specialty crops. 

10 (b) GRANTS BASED ON VALUE OF PRODUCTION.—

11 Subject to subsection (c), the amount of the grant for a 

12 fiscal year to a State under this section shall bear the 

13 same ratio to the total amount appropriated pursuant to 

14 the authorization of appropriations in subsection (i) for 

15 that fiscal year as the value of specialty crop production 

16 in the State during the preceding calendar year bears to 

17 the value of specialty crop production during the preceding 

18 calendar year in all States whose application for a grant 

19 for that fiscal year is accepted by the Secretary under sub20 section (f). 

21 (c) MINIMUM GRANT AMOUNT.—Subject to the ap22 propriation of sufficient funds to carry out this subsection, 

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

24 as a grant under this section notwithstanding the amount 

25 calculated under subsection (b) for the State. 
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1 (d) ELIGIBILITY.—To be eligible to receive a grant 

2 under this section, a State department of agriculture shall 

3 prepare and submit, for approval by the Secretary of Agri4 culture, an application at such time, in such a manner, 

5 and containing such information as the Secretary shall re6 quire by regulation, including—

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

8 subsection (e); 

9 (2) an assurance that the State will comply 

10 with the requirements of the plan; and 

11 (3) an assurance that grant funds received 

12 under this section shall supplement the expenditure 

13 of State funds in support of specialty crops grown 

14 in that State, rather than replace State funds. 

15 (e) PLAN REQUIREMENTS.—The State plan shall 

16 identify the lead agency charged with the responsibility of 

17 carrying out the plan and indicate how the grant funds 

18 will be utilized to enhance the competitiveness of specialty 

19 crops. 

20 (f) REVIEW OF APPLICATION.—In reviewing the ap21 plication of a State submitted under subsection (d), the 

22 Secretary of Agriculture shall ensure that the State plan 

23 would carry out the purpose of grant program, as specified 

24 in subsection (a). The Secretary may accept or reject ap25 plications for a grant under this section. 
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1 (g) EFFECT OF NONCOMPLIANCE.—If the Secretary 

2 of Agriculture, after reasonable notice to a State, finds 

3 that there has been a failure by the State to comply sub4 stantially with any provision or requirement of the State 

5 plan, the Secretary may disqualify, for one or more years, 

6 the State from receipt of future grants under this section. 

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

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

9 conduct an audit of the expenditures of grant funds by 

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

11 the audit, the State shall submit a copy of the audit to 

12 the Secretary of Agriculture. 

13 (i) AUTHORIZATION OF APPROPRIATIONS.—For each 

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

15 to be appropriated to the Secretary of Agriculture 

16 $44,500,000 to make grants under this section. 

17 TITLE II—SPECIALTY CROP 

18 ADVANCEMENT 

19 SEC. 201. TECHNICAL ASSISTANCE FOR SPECIALTY CROPS. 

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

21 is authorized to be appropriated to the Secretary of Agri22 culture $2,000,000 to carry out section 3205 of the Farm 

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

24 5680). Amounts appropriated pursuant to this authoriza-
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1 tion of appropriations shall be in addition to any other 

2 funds made available to carry out such section. 

3 SEC. 202. REDUCTION IN BACKLOG OF AGRICULTURAL EX4 PORT PETITIONS. 

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

6 practicable, the Secretary of Agriculture shall endeavor to 

7 reduce the backlog in the number of applications for per8 mits for the export of United States agricultural commod9 ities. In achieving such reduction, the Secretary shall not 

10 dilute or diminish existing personnel resources that are 

11 currently managing sanitary and phytosanitary issues 

12 for—

13 (1) United States agricultural commodities for 

14 which exportation is sought; and 

15 (2) interdiction and control of pests and dis16 eases, including for the evaluation of pest and dis17 ease concerns of foreign agricultural commodities for 

18 which importation is sought. 

19 (b) REPORT.—The Secretary of Agriculture shall 

20 submit to the Committee on Agriculture of the House of 

21 Representatives and the Committee on Agriculture, Nutri22 tion, and Forestry of the Senate an annual report speci23 fying, for the year covered by the report—

24 (1) the total number of applications processed 

25 to completion; 
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1 (2) the number of backlog applications proc2 essed to completion; 

3 (3) the percentage of backlog applications proc4 essed to completion; and 

5 (4) the number of backlog applications remain6 ing. 

7 SEC. 203. REPORT ON SANITARY AND PHYTOSANITARY EX8 PORT ISSUES. 

9 Not later than 180 days after the date of the enact10 ment of this Act, the Secretary of Agriculture shall submit 

11 to the Committee on Agriculture of the House of Rep12 resentatives and the Committee on Agriculture, Nutrition, 

13 and Forestry of the Senate a report on significant sanitary 

14 and phytosanitary issues that affect the export of specialty 

15 crops. 

16 TITLE III—SPECIALTY CROP 

17 RESEARCH 

18 SEC. 301. METHYL BROMIDE ALTERNATIVES. 

19 (a) PRIORITY.—The Secretary of Agriculture shall 

20 elevate the priority of current methyl bromide alternative 

21 research and extension activities and reexamine the risks 

22 and benefits of extending the phase-out deadline in effect 

23 on the date of the enactment of this Act, including the 

24 estimated cost to the grower or processor associated with 

25 any alternatives proposed. 
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1 (b) AUTHORIZATION OF APPROPRIATIONS.—For each 

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

3 to be appropriated to the Secretary of Agriculture 

4 $5,000,000 to carry out this section. 

5 SEC. 302. NATIONAL SPECIALTY CROP RESEARCH PRO6 GRAM. 

7 Section 1672(e) of the Food, Agriculture, Conserva8 tion, and Trade Act of 1990 (7 U.S.C. 5925(e)) is amend9 ed by adding at the end of the following new paragraph: 

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

11 and extension grants may be made under this sec12 tion for the purpose of improving the efficiency, pro13 ductivity, and profitability of specialty crop produc14 tion in the United States.’’. 

15 SEC. 303. SPECIALTY CROP COMMITTEE. 

16 The National Agricultural Research, Extension, and 

17 Teaching Policy Act of 1977 is amended by inserting after 

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

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

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

21 the date of the enactment of the Specialty Crops Competi22 tiveness Act of 2004, the executive committee of the Advi23 sory Board shall establish, and appoint the initial mem24 bers of, a permanent specialty crops committee that will 

25 be responsible for studying the scope and effectiveness of 
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1 research, extension, and economics programs affecting the 

2 specialty crop industry. 

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

4 of the Advisory Board may be appointed as members of 

5 the specialty crops committee. Members of the specialty 

6 crops committee shall serve at the discretion of the execu7 tive committee. 

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

9 180 days after the establishment of the specialty crops 

10 committee, and annually thereafter, the specialty crops 

11 committee shall submit to the Advisory Board a report 

12 containing the findings of its study under subsection (a). 

13 The specialty crops committee shall include in each report 

14 recommendations regarding the following: 

15 ‘‘(1) Measures designed to improve the effi16 ciency, productivity, and profitability of specialty 

17 crop production in the United States. 

18 ‘‘(2) Measures designed to improve competitive19 ness in research, extension, and economics programs 

20 affecting the specialty crop industry. 

21 ‘‘(3) Programs that would— 

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

23 fresh fruits and vegetables, including their taste 

24 and appearance; 
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1 ‘‘(B) develop new crop protection tools and 

2 expand the applicability and cost-effectiveness 

3 of integrated pest management; 

4 ‘‘(C) prevent the introduction of foreign 

5 invasive pests and diseases; 

6 ‘‘(D) develop new products and new uses 

7 of specialty crops; 

8 ‘‘(E) develop new and improved marketing 

9 tools for specialty crops; 

10 ‘‘(F) enhance food safety regarding spe11 cialty crops; 

12 ‘‘(G) improve mechanization of production 

13 practices; and 

14 ‘‘(H) enhance irrigation techniques used in 

15 specialty crop production. 

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

17 the annual budget recommendations for the Department 

18 of Agriculture, the Secretary shall take into consideration 

19 those findings and recommendations contained in the 

20 most-recent report of the specialty crops committee that 

21 are adopted by the Advisory Board. 

22 ‘‘(e) ANNUAL REPORT BY SECRETARY.—In the budg23 et material submitted to Congress by the Secretary in con24 nection with the budget submitted pursuant to section 

25 1105 of title 31, United States Code, for a fiscal year, 
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1 the Secretary shall include a report describing how the 

2 Secretary addressed each recommendation of the specialty 

3 crops committee described in subsection (d).’’. 

4 TITLE IV—PEST AND DISEASE 

5 RESPONSE FUND 

6 SEC. 401. PEST AND DISEASE RESPONSE FUND. 

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

8 books of the Treasury an account to be known as the 

9 ‘‘Pest and Disease Response Fund’’. There shall be depos10 ited into the Fund any proceeds received by the Secretary 

11 of Agriculture as reimbursement for services provided by 

12 the Secretary using amounts in the Fund. 

13 (b) AVAILABILITY.—Amounts in the Fund shall re14 main available until expended. 

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

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

17 Plant Protection Act (7 U.S.C. 7701 et seq.), the Sec18 retary of Agriculture shall have complete discretion re19 garding the use of amounts in the Fund to support emer20 gency eradication and research activities in response to 

21 economic and health threats posed by pests and diseases 

22 affecting agricultural commodities. 

23 (d) AUTHORIZATION OF APPROPRIATIONS.—For 

24 each of the fiscal years 2005 through 2009, there is au-
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1 thorized to be appropriated to the Secretary of Agriculture 

2 $1,000,000 for deposit in the Fund. 

3 SEC. 402. IMPORT AND EXPORT REGULATION REVIEW. 

4 (a) PEER REVIEW.—The Secretary of Agriculture 

5 shall enter into an agreement with the National Plant 

6 Board to obtain a peer review of the procedures and stand7 ards that govern the consideration of import and export 

8 requests under section 412 of the Plant Protection Act 

9 (7 U.S.C. 7712). The peer review shall be consistent with 

10 the guidance by the Office of Management and Budget 

11 pertaining to peer review and information quality. 

12 (b) ELEMENTS OF REVIEW.—The peer review re13 quired by subsection (a) shall address, at a minimum—

14 (1) the preparation of risk assessments; and 

15 (2) the sufficiency, type, and quality of data 

16 that should be submitted to the Secretary of Agri17 culture. 

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

19 peer review conducted under subsection (a) shall be sub20 mitted to the Secretary and Congress not later than 180 

21 days after the date of the enactment of this Act. 

22 SEC. 403. MAINTENANCE OF FREDERICKSBURG INSPEC23 TION TRAINING CENTER. 

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

25 is authorized to be appropriated to the Secretary of Agri-
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1 culture $1,500,000 for the maintenance of the Agricul2 tural Marketing Service inspection training center in 

3 Fredericksburg, Virginia.

Passed the House of Representatives October 7 (legislative day, October 6), 2004. 

Attest: JEFF TRANDAHL, 

Clerk.