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[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[S. 3001 Placed on Calendar Senate (PCS)]

                                                       Calendar No. 767
106th CONGRESS
  2d Session
                                S. 3001

                          [Report No. 106-391]

To amend the United States Grain Standards Act to extend the authority 
      of the Secretary of Agriculture to collect fees, extend the 
authorization of appropriations, and improve the administration of that 
Act, to amend the United States Warehouse Act to authorize the issuance 
       of electronic warehouse receipts, and for other purposes.

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

                            August 25, 2000

Mr. Lugar, from the Committee on Agriculture, Nutrition, and Forestry, 
 reported under authority of the order of the Senate of July 26, 2000, 
  the following original bill; which was read twice and placed on the 
                                calendar

_______________________________________________________________________

                                 A BILL

 
To amend the United States Grain Standards Act to extend the authority 
      of the Secretary of Agriculture to collect fees, extend the 
authorization of appropriations, and improve the administration of that 
Act, to amend the United States Warehouse Act to authorize the issuance 
       of electronic warehouse receipts, 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; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Grain Standards 
and Warehouse Improvement Act of 2000''.
    (b) Table of Contents.--The table of contents of this Act is as 
follows:

Sec. 1. Short title; table of contents.
                        TITLE I--GRAIN STANDARDS

Sec. 101. Sampling for export grain.
Sec. 102. Geographic boundaries for official agencies.
Sec. 103. Authorization to collect fees.
Sec. 104. Testing of equipment.
Sec. 105. Limitation on administrative and supervisory costs.
Sec. 106. Licenses and authorizations.
Sec. 107. Grain additives.
Sec. 108. Authorization of appropriations.
Sec. 109. Advisory committee.
Sec. 110. Conforming amendments.
                          TITLE II--WAREHOUSES

Sec. 201. Storage of agricultural products in warehouses.
                        TITLE III--MISCELLANEOUS

Sec. 301. Energy generation, transmission, and distribution facilities 
                            efficiency grants in rural communities with 
                            extremely high energy costs.
Sec. 302. Carry forward adjustment.
Sec. 303. Fees and penalties for mediation and arbitration of disputes 
                            involving agricultural products moving in 
                            foreign commerce under multinational 
                            entities.
Sec. 304. Community facilities grant program for rural communities with 
                            extreme unemployment and severe economic 
                            depression.
Sec. 305. Eligibility for business and industry loans.
Sec. 306. State agricultural loan mediation programs.
Sec. 307. Adjustments to nutrition programs.

                        TITLE I--GRAIN STANDARDS

SEC. 101. SAMPLING FOR EXPORT GRAIN.

    Section 5(a)(1) of the United States Grain Standards Act (7 U.S.C. 
77(a)(1)) is amended by striking ``(on the basis'' and all that follows 
through ``from the United States)''.

SEC. 102. GEOGRAPHIC BOUNDARIES FOR OFFICIAL AGENCIES.

    (a) Inspection Authority.--Section 7(f)(2) of the United States 
Grain Standards Act (7 U.S.C. 79(f)(2)) is amended by striking 
``conduct pilot programs to''.
    (b) Weighing Authority.--Section 7A(i) of the United States Grain 
Standards Act (7 U.S.C. 79a(i)) is amended in the last sentence by 
striking ``conduct pilot programs to''.

SEC. 103. AUTHORIZATION TO COLLECT FEES.

    (a) Inspection and Supervisory Fees.--Section 7(j)(4) of the United 
States Grain Standards Act (7 U.S.C. 79(j)(4)) is amended in the first 
sentence by striking ``2000'' and inserting ``2005''.
    (b) Weighing and Supervisory Fees.--Section 7A(l)(3) of the United 
States Grain Standards Act (7 U.S.C. 79a(l)(3)) is amended in the first 
sentence by striking ``2000'' and inserting ``2005''.

SEC. 104. TESTING OF EQUIPMENT.

    Section 7B(a) of the United States Grain Standards Act (7 U.S.C. 
79b(a)) is amended in the first sentence by striking ``but at least 
annually and''.

SEC. 105. LIMITATION ON ADMINISTRATIVE AND SUPERVISORY COSTS.

    Section 7D of the United States Grain Standards Act (7 U.S.C. 79d) 
is amended--
            (1) by striking ``2000'' and inserting ``2005''; and
            (2) by striking ``40 per centum'' and inserting ``30 
        percent''.

SEC. 106. LICENSES AND AUTHORIZATIONS.

    Section 8(a)(3) of the United States Grain Standards Act (7 U.S.C. 
84(a)(3)) is amended by inserting ``inspection, weighing,'' after 
``laboratory testing,''.

SEC. 107. GRAIN ADDITIVES.

    Section 13(e)(1) of the United States Grain Standards Act (7 U.S.C. 
87b(e)(1)) is amended by inserting ``, or prohibit disguising the 
quality of grain,'' after ``sound and pure grain''.

SEC. 108. AUTHORIZATION OF APPROPRIATIONS.

    Section 19 of the United States Grain Standards Act (7 U.S.C. 87h) 
is amended by striking ``2000'' and inserting ``2005''.

SEC. 109. ADVISORY COMMITTEE.

    Section 21(e) of the United States Grain Standards Act (7 U.S.C. 
87j(e)) is amended by striking ``2000'' and inserting ``2005''.

SEC. 110. CONFORMING AMENDMENTS.

    (a) Section 8 of the United States Grain Standards Act of 1976 (7 
U.S.C. 79 note; Public Law 94-582) is amended--
            (1) by striking ``(a)''; and
            (2) by striking subsection (b).
    (b) Sections 23, 24, and 25 of the United States Grain Standards 
Act of 1976 (7 U.S.C. 87e-1, 7 U.S.C. 76 note; Public Law 94-582) are 
repealed.
    (c) Section 27 of the United States Grain Standards Act of 1976 (7 
U.S.C. 74 note; Public Law 94-582) is amended by striking ``; and 
thereafter'' and all that follows and inserting a period.

                          TITLE II--WAREHOUSES

SEC. 201. STORAGE OF AGRICULTURAL PRODUCTS IN WAREHOUSES.

    The United States Warehouse Act (7 U.S.C. 241 et seq.) is amended 
to read as follows:

``SECTION 1. SHORT TITLE.

    ``This Act may be cited as the `United States Warehouse Act'.

``SEC. 2. DEFINITIONS.

    ``In this Act:
            ``(1) Agricultural product.--The term `agricultural 
        product' means an agricultural commodity, as determined by the 
        Secretary, including a processed product of an agricultural 
        commodity.
            ``(2) Approval.--The term `approval' means the consent 
        provided by the Secretary for a person to engage in an activity 
        authorized by this Act.
            ``(3) Department.--The term ``Department'' means the 
        Department of Agriculture.
            ``(4) Electronic document.--The term `electronic document' 
        means a document authorized under this Act generated, sent, 
        received, or stored by electronic, optical, or similar means, 
        including electronic data interchange, electronic mail, 
        telegram, telex, or telecopy.
            ``(5) Electronic receipt.--The term `electronic receipt' 
        means a receipt that is authorized by the Secretary to be 
        issued or transmitted under this Act in the form of an 
        electronic document.
            ``(6) Holder.--
                    ``(A) In general.--The term `holder' means a 
                person, as defined by the Secretary, that has 
                possession in fact or by operation of law of a receipt 
                or any electronic document.
                    ``(B) Inclusion.--The term `holder' includes a 
                person that has possession of a receipt or electronic 
                document as a creditor of another person.
            ``(7) Person.--The term `person' means--
                    ``(A) a person (as defined in section 1 of title 1, 
                United States Code);
                    ``(B) a State; and
                    ``(C) a political subdivision of a State.
            ``(8) Receipt.--The term `receipt' means a warehouse 
        receipt issued in accordance with this Act, including an 
        electronic receipt.
            ``(9) Secretary.--The term `Secretary' means the Secretary 
        of Agriculture.
            ``(10) Warehouse.--The term `warehouse' means a structure 
        or other approved storage facility, as determined by the 
        Secretary, in which any agricultural product may be stored or 
        handled for the purposes of interstate or foreign commerce.
            ``(11) Warehouse operator.--The term `warehouse operator' 
        means a person that is lawfully engaged in the business of 
        storing or handling agricultural products.

``SEC. 3. POWERS OF SECRETARY.

    ``(a) In General.--The Secretary shall have exclusive power, 
jurisdiction, and authority, to the extent that this Act applies, with 
respect to--
            ``(1) each warehouse operator licensed under this Act;
            ``(2) each person that has obtained an approval to engage 
        in an activity under this Act; and
            ``(3) each person claiming an interest in an agricultural 
        product by means of an electronic document or electronic 
        receipt subject to this Act.
    ``(b) Covered Agricultural Products.--The Secretary shall specify, 
after an opportunity for notice and comment, those agricultural 
products for which a warehouse license may be issued under this Act.
    ``(c) Investigations.--The Secretary may investigate the storing, 
warehousing, classifying according to grade and otherwise, weighing, 
and certifying of agricultural products.
    ``(d) Inspections.--The Secretary may inspect or cause to be 
inspected any person or warehouse licensed under this Act and any 
warehouse for which a license is applied for under this Act.
    ``(e) Suitability for Storage.--The Secretary may determine whether 
a licensed warehouse, or a warehouse for which a license is applied for 
under this Act, is suitable for the proper storage of the agricultural 
product or products stored or proposed for storage in the warehouse.
    ``(f) Classification.--The Secretary may classify a licensed 
warehouse, or a warehouse for which a license is applied for under this 
Act, in accordance with the ownership, location, surroundings, 
capacity, conditions, and other qualities of the warehouse and as to 
the kinds of licenses issued or that may be issued for the warehouse 
under this Act.
    ``(g) Warehouse Operator's Duties.--Subject to the other provisions 
of this Act, the Secretary may prescribe the duties of a warehouse 
operator operating a warehouse licensed under this Act with respect to 
the warehouse operator's care of and responsibility for agricultural 
products stored or handled by the warehouse operator.
    ``(h) Systems for Conveyance of Title in Agricultural Products.--
The Secretary may approve 1 or more systems under which title in 
agricultural products may be conveyed and under which documents 
relating to the shipment, payment, and financing of the sale of 
agricultural products may be transferred, including conveyance of 
receipts and any other written or electronic documents in accordance 
with a process established by the Secretary.
    ``(i) Examination and Audits.--The Secretary may conduct an 
examination, audit, or similar activity with respect to--
            ``(1) any person that is engaged in the business of storing 
        an agricultural product that is subject to this Act;
            ``(2) any State agency that regulates the storage of an 
        agricultural product by such a person; or
            ``(3) any commodity exchange with regulatory authority over 
        the storage of agricultural products that are subject to this 
        Act.
    ``(j) Licenses for Operation of Warehouses.--The Secretary may 
issue to any warehouse operator a license for the operation of a 
warehouse in accordance with this Act if--
            ``(1) the Secretary determines that the warehouse is 
        suitable for the proper storage of the agricultural product or 
        products stored or proposed for storage in the warehouse; and
            ``(2) the warehouse operator agrees, as a condition of the 
        license, to comply with this Act (including regulations 
        promulgated under this Act).
    ``(k) Licensing of Other Persons.--
            ``(1) In general.--On presentation of satisfactory proof of 
        competency to carry out the activities described in this 
        paragraph, the Secretary may issue to any person a Federal 
        license--
                    ``(A) to inspect any agricultural product stored or 
                handled in a warehouse subject to this Act;
                    ``(B) to sample such an agricultural product;
                    ``(C) to classify such an agricultural product 
                according to condition, grade, or other class and 
                certify the condition, grade, or other class of the 
                agricultural product; or
                    ``(D) to weigh such an agricultural product and 
                certify the weight of the agricultural product.
            ``(2) Condition.--As a condition of a license issued under 
        paragraph (1), the licensee shall agree to comply with this Act 
        (including regulations promulgated under this Act).
    ``(l) Examination of Books, Records, Papers, and Accounts.--The 
Secretary may examine, using designated officers, employees, or agents 
of the Department, all books, records, papers, and accounts relating to 
activities subject to this Act of--
            ``(1) a warehouse operator operating a warehouse licensed 
        under this Act;
            ``(2) a person operating a system for the electronic 
        recording and transfer of receipts and other documents 
        authorized by the Secretary; or
            ``(3) any other person issuing receipts or electronic 
        documents authorized by the Secretary under this Act.
    ``(m) Cooperation With States.--The Secretary may--
            ``(1) cooperate with officers and employees of a State who 
        administer or enforce State laws relating to warehouses, 
        warehouse operators, weighers, graders, inspectors, samplers, 
        or classifiers; and
            ``(2) enter into cooperative agreements with States to 
        perform activities authorized under this Act.

``SEC. 4. IMPOSITION AND COLLECTION OF FEES.

    ``(a) In General.--The Secretary shall charge, assess, and cause to 
be collected fees to cover the costs of administering this Act.
    ``(b) Rates.--The fees under this section shall be set at a rate 
determined by the Secretary.
    ``(c) Treatment of Fees.--All fees collected under this section 
shall be credited to the account that incurs the costs of administering 
this Act and shall be available to the Secretary without further 
appropriation and without fiscal year limitation.
    ``(d) Interest.--Funds collected under this section may be 
deposited in an interest bearing account with a financial institution, 
and any interest earned on the account shall be credited under 
subsection (c).
    ``(e) Efficiencies and Cost Effectiveness.--
            ``(1) In general.--The Secretary shall seek to minimize the 
        fees established under this section by improving efficiencies 
        and reducing costs, including the efficient use of personnel to 
        the extent practicable and consistent with the effective 
        implementation of this Act.
            ``(2) Report.--The Secretary shall publish an annual report 
        on the actions taken by the Secretary to comply with paragraph 
        (1).

``SEC. 5. QUALITY AND VALUE STANDARDS.

    ``If standards for the evaluation or determination of the quality 
or value of an agricultural product are not established under another 
Federal law, the Secretary may establish standards for the evaluation 
or determination of the quality or value of the agricultural product 
under this Act.

``SEC. 6. BONDING AND OTHER FINANCIAL ASSURANCE REQUIREMENTS.

    ``(a) In General.--As a condition of receiving a license or 
approval under this Act (including regulations promulgated under this 
Act), the person applying for the license or approval shall execute and 
file with the Secretary a bond, or provide such other financial 
assurance as the Secretary determines appropriate, to secure the 
person's performance of the activities so licensed or approved.
    ``(b) Service of Process.--To qualify as a suitable bond or other 
financial assurance under subsection (a), the surety, sureties, or 
financial institution shall be subject to service of process in suits 
on the bond or other financial assurance in the State, district, or 
territory in which the warehouse is located.
    ``(c) Additional Assurances.--If the Secretary determines that a 
previously approved bond or other financial assurance is insufficient, 
the Secretary may suspend or revoke the license or approval covered by 
the bond or other financial assurance if the person that filed the bond 
or other financial assurance does not provide such additional bond or 
other financial assurance as the Secretary determines appropriate.
    ``(d) Third Party Actions.--Any person injured by the breach of any 
obligation arising under this Act for which a bond or other financial 
assurance has been obtained as required by this section may sue with 
respect to the bond or other financial assurance in a district court of 
the United States to recover the damages that the person sustained as a 
result of the breach.

``SEC. 7. MAINTENANCE OF RECORDS.

    ``To facilitate the administration of this Act, the following 
persons shall maintain such records and make such reports, as the 
Secretary may by regulation require:
            ``(1) A warehouse operator that is licensed under this Act.
            ``(2) A person operating a system for the electronic 
        recording and transfer of receipts and other documents that are 
        authorized under this Act.
            ``(3) Any other person issuing receipts or electronic 
        documents that are authorized under this Act.

``SEC. 8. FAIR TREATMENT IN STORAGE OF AGRICULTURAL PRODUCTS.

    ``(a) In General.--Subject to the capacity of a warehouse, a 
warehouse operator shall deal, in a fair and reasonable manner, with 
persons storing, or seeking to store, an agricultural product in the 
warehouse if the agricultural product--
            ``(1) is of the kind, type, and quality customarily stored 
        or handled in the area in which the warehouse is located;
            ``(2) is tendered to the warehouse operator in a suitable 
        condition for warehousing; and
            ``(3) is tendered in a manner that is consistent with the 
        ordinary and usual course of business.
    ``(b) Allocation.--Nothing in this section prohibits a warehouse 
operator from entering into an agreement with a depositor of an 
agricultural product to allocate available storage space.

``SEC. 9. COMMINGLING OF AGRICULTURAL PRODUCTS.

    ``(a) In General.--A warehouse operator may commingle agricultural 
products in a manner approved by the Secretary.
    ``(b) Liability.--A warehouse operator shall be severally liable to 
each depositor or holder for the care and redelivery of the share of 
the depositor and holder of the commingled agricultural product to the 
same extent and under the same circumstances as if the agricultural 
products had been stored separately.

``SEC. 10. TRANSFER OF STORED AGRICULTURAL PRODUCTS.

    ``(a) In General.--In accordance with regulations promulgated under 
this Act, a warehouse operator may transfer a stored agricultural 
product from one warehouse to another warehouse for continued storage.
    ``(b) Continued Duty.--The warehouse operator from which 
agricultural products have been transferred under subsection (a) shall 
deliver to the rightful owner of such products, on request at the 
original warehouse, such products in the quantity and of the kind, 
quality, and grade called for by the receipt or other evidence of 
storage of the owner.

``SEC. 11. ISSUANCE OF RECEIPTS AND OTHER DOCUMENTS.

    ``(a) In General.--Subject to subsections (b) and (c) and except as 
otherwise provided in this Act, at the request of the depositor of an 
agricultural product stored or handled in a warehouse licensed under 
this Act, the warehouse operator shall issue a receipt to the depositor 
as prescribed by the Secretary.
    ``(b) Actual Storage Required.--A receipt may not be issued under 
this section for an agricultural product unless the agricultural 
product is actually stored in the warehouse at the time of the issuance 
of the receipt.
    ``(c) Contents.--Each receipt issued for an agricultural product 
stored or handled in a warehouse licensed under this Act shall contain 
such information, for each agricultural product covered by the receipt, 
as the Secretary may require by regulation.
    ``(d) Prohibition on Additional Receipts or Other Documents.--
            ``(1) Receipts.--While a receipt issued under this Act is 
        outstanding and uncanceled by the warehouse operator, no other 
        or further receipt may be issued for the same agricultural 
        product (or any portion of the same agricultural product) 
        represented by the outstanding receipt, except as authorized by 
        the Secretary.
            ``(2) Other documents.--If a written or electronic document 
        is recorded or transferred under this section, no other similar 
        document in any form shall be issued by any person with respect 
        to the same agricultural product represented by the document, 
        except as authorized by the Secretary.
    ``(e) Electronic Receipts and Electronic Documents.--Except as 
provided in subsection (f) and notwithstanding any other provision of 
Federal or State law:
            ``(1) In general.--The Secretary shall promulgate 
        regulations to authorize the issuance of electronic receipts, 
        and the recording and transfer of electronic receipts and other 
        documents, in accordance with this subsection.
            ``(2) Systems for electronic recording and transfer.--
        Electronic receipts and electronic documents issued with 
respect to an agricultural product may be recorded in, and transferred 
under, a system or systems maintained in 1 or more locations.
            ``(3) Treatment of holder.--The person designated as a 
        holder of an electronic receipt or other electronic document 
        shall be considered, for the purposes of Federal and State law, 
        to be in possession of the receipt or document.
            ``(4) Security interests.--
                    ``(A) Perfection of interest.--Any security 
                interest lawfully asserted by a person under any 
                Federal or State law with respect to an agricultural 
                product that is the subject of an electronic receipt, 
                or an electronic document filed under any system for 
                electronic receipts or other electronic documents 
                issued or filed in accordance with this Act, may be 
                perfected only by recording the security interest in 
                the system in the manner specified by the regulations 
                promulgated under paragraph (1).
                    ``(B) Effect of recordation.--The recordation by a 
                person of the person's security interest in any 
                agricultural product included in any system for 
                electronic receipts or other electronic documents 
                issued or filed in accordance with this Act shall, for 
                the purposes of Federal and State law, establish the 
                security interest of the person.
                    ``(C) Priority.--If more than 1 security interest 
                exists in an agricultural product covered by an 
                electronic receipt, the priority of the security 
                interests shall be determined by the applicable Federal 
                or State law.
                    ``(D) Encumbrances.--
                            ``(i) Operators licensed under state law.--
                        If a warehouse operator licensed under State 
                        law elects to issue an electronic receipt 
                        authorized under this subsection, a security 
                        interest, lien, or other encumbrance may be 
                        recorded on the electronic receipt under this 
                        subsection only if the security interest, lien, 
                        or other encumbrance is--
                                    ``(I) authorized by State law to be 
                                included on a written warehouse 
                                receipt; and
                                    ``(II) recorded in a manner 
                                prescribed by the Secretary.
                            ``(ii) Other applications.--If a warehouse 
                        operator licensed under this Act, or a 
                        warehouse operator not licensed under State 
                        law, elects to issue an electronic receipt 
                        authorized under this subsection, a security 
                        interest, lien, or other encumbrance shall be 
                        recorded on the electronic receipt in a manner 
                        prescribed by the Secretary.
            ``(5) Effect of purchase of receipt or document.--A person 
        purchasing an electronic receipt or electronic document shall 
        take possession of the agricultural product free and clear of 
        all liens, except those liens recorded in the system or systems 
        established under the regulations promulgated under paragraph 
        (1).
            ``(6) Acceptance.--
                    ``(A) In general.--An electronic receipt issued, 
                and an electronic document transferred, in accordance 
                with the regulations promulgated under paragraph (1) 
                shall be accepted in any business, market, or financial 
                transaction, whether governed by Federal or State law.
                    ``(B) No electronic receipt required.--A person 
                shall not be required to issue a receipt or document 
                with respect to an agricultural product in electronic 
                format.
            ``(7) Legal effect.--Information created to comply with 
        this Act (including regulations promulgated under this Act) 
        shall not be denied legal effect, validity, or enforceability 
        on the ground that the information is generated, sent, 
        received, or stored by electronic or similar means.
            ``(8) Option for state licensed warehouse operators.--
        Notwithstanding any other provision of this Act, a State-
        licensed warehouse operator not licensed under this Act may, at 
        the option of the warehouse operator, issue electronic receipts 
        and electronic documents in accordance with this subsection.
            ``(9) Application.--This subsection shall not apply to a 
        warehouse operator that is licensed under State law to store 
        agricultural commodities in a warehouse in the State if the 
        warehouse operator elects--
                    ``(A) not to issue electronic receipts authorized 
                under this subsection; or
                    ``(B) to issue electronic receipts authorized under 
                State law.
    ``(f) Electronic Receipts and Electronic Documents for Cotton.--
            ``(1) Authority.--
                    ``(A) Central filing.--Notwithstanding any other 
                provision of Federal or State law, the Secretary, or 
                the designated representative of the Secretary, may 
                provide that, in lieu of issuing a receipt for cotton 
                stored in a warehouse licensed under this Act or in any 
                other warehouse, the information required to be 
                included in a receipt (i) under this Act in the case of 
                a warehouse licensed under this Act or (ii) under any 
                applicable State law in the case of a warehouse not 
                licensed under this Act, shall be recorded instead in 1 
                or more central filing systems maintained in 1 or more 
                locations in accordance with regulations promulgated by 
                the Secretary.
                    ``(B) Delivery of cotton.--Any record under 
                subparagraph (A) shall include a statement that the 
                cotton shall be delivered to a specified person or to 
                the order of the person.
                    ``(C) Electronic transmission facilities between 
                warehouses and system.--
                            ``(i) Nonapplicability to warehouses 
                        without facilities.--This subsection and 
                        section 4 shall not apply to a warehouse that 
                        does not have facilities to electronically 
                        transmit and receive information to and from a 
                        central filing system under this subsection.
                            ``(ii) No requirement to obtain 
                        facilities.--Nothing in this subsection 
                        requires a warehouse operator to obtain 
                        facilities described in clause (i).
            ``(2) Recordation and enforcement of liens in central 
        filing system.--Notwithstanding any other provision of Federal 
        or State law:
                    ``(A) Recordation.--The record of the possessory 
                interests of persons in cotton included in a central 
                filing system under this subsection--
                            ``(i) shall be considered to be a receipt 
                        for the purposes of this Act and State law; and
                            ``(ii) shall establish the possessory 
                        interest of persons in the cotton.
                    ``(B) Enforcement.--
                            ``(i) Possession of warehouse receipt.--Any 
                        person designated as a holder of an electronic 
                        warehouse receipt authorized under this 
                        subsection or section 4 shall, for the purpose 
                        of perfecting the security interest of the 
                        person under Federal or State law with respect 
                        to the cotton covered by the warehouse receipt, 
                        be considered to be in possession of the 
                        warehouse receipt.
                            ``(ii) Priority of security interests.--If 
                        more than 1 security interest exists in the 
                        cotton represented by the electronic warehouse 
                        receipt, the priority of the security interests 
                        shall be determined by applicable Federal or 
                        State law.
                            ``(iii) Applicability.--This subsection is 
                        applicable to electronic cotton warehouse 
                        receipts and any other security interests 
                        covering cotton stored in a cotton warehouse, 
                        regardless of whether the warehouse is licensed 
                        under this Act.
            ``(3) Conditions for delivery on demand for cotton 
        stored.--A warehouse operator operating a warehouse covered by 
        this subsection, in the absence of a lawful excuse, shall, 
        without unnecessary delay, deliver the cotton stored in the 
        warehouse on demand made by the person named in the record in 
        the central filing system as the holder of the receipt 
        representing the cotton, if the demand is accompanied by--
                    ``(A) an offer to satisfy the valid lien of a 
                warehouse operator, as determined by the Secretary; and
                    ``(B) an offer to provide an acknowledgment in a 
                central filing system under this subsection, if 
                requested by the warehouse operator, that the cotton 
                has been delivered.

``SEC. 12. CONDITIONS FOR DELIVERY OF AGRICULTURAL PRODUCTS.

    ``(a) Prompt Delivery.--In the absence of a lawful excuse, a 
warehouse operator shall, without unnecessary delay, deliver the 
agricultural product stored or handled in the warehouse on a demand 
made by--
            ``(1) the holder of the receipt for the agricultural 
        product; or
            ``(2) the person that deposited the product, if no receipt 
        has been issued.
    ``(b) Payment To Accompany Demand if Requested.--
            ``(1) In general.--Demand for delivery shall be accompanied 
        by payment of the accrued charges associated with the storage 
        of the agricultural product if requested by the warehouse 
        operator.
            ``(2) Special rule for cotton.--In the case of cotton 
        stored in a warehouse, the warehouse operator shall provide a 
        written request for payment of the accrued charges associated 
        with the storage of the cotton to the holder of the receipt at 
        the time at which demand for the delivery of the cotton is 
        made.
    ``(c) Surrender of Receipt.--When the holder of a receipt requests 
delivery of an agricultural product covered by the receipt, the holder 
shall surrender the receipt to the warehouse operator, in the manner 
prescribed by the Secretary, to obtain the agricultural product.
    ``(d) Cancellation of Receipt.--A warehouse operator shall cancel 
each receipt returned to the warehouse operator upon the delivery of 
the agricultural product for which the receipt was issued.

``SEC. 13. SUSPENSION OR REVOCATION OF LICENSES.

    ``(a) In General.--After providing notice and an opportunity for a 
hearing in accordance with this section, the Secretary may suspend or 
revoke any license issued, or approval for an activity provided, under 
this Act--
            ``(1) for a material violation of, or failure to comply, 
        with any provision of this Act (including regulations 
        promulgated under this Act); or
            ``(2) on the ground that unreasonable or exorbitant charges 
        have been imposed for services rendered.
    ``(b) Temporary Suspension.--The Secretary may temporarily suspend 
a license or approval for an activity under this Act prior to an 
opportunity for a hearing for any violation of, or failure to comply 
with, any provision of this Act (including regulations promulgated 
under this Act).
    ``(c) Authority To Conduct Hearings.--The agency within the 
Department that is responsible for administering regulations 
promulgated under this Act shall have exclusive authority to conduct 
any hearing required under this section.
    ``(d) Judicial Review.--
            ``(1) Jurisdiction.--A final administrative determination 
        issued subsequent to a hearing may be reviewable only in a 
        district court of the United States.
            ``(2) Procedure.--The review shall be conducted in 
        accordance with the standards set forth in section 706(2) of 
        title 5, United States Code.

``SEC. 14. PUBLIC INFORMATION.

    ``(a) In General.--The Secretary may release to the public--
            ``(1) the names, addresses, and locations of all persons 
        that have been licensed under this Act or that have been 
        approved to engage in an activity under this Act;
            ``(2) the results of any investigation made, or hearing 
        conducted, under this Act; and
            ``(3) the names, addresses, and locations of all persons 
        with respect to which a license or approval has been suspended 
        or revoked under section 13, including the reasons for the 
        suspension or revocation.
    ``(b) Confidentiality.--Except as otherwise provided by law, an 
officer, employee, or agent of the Department shall not divulge 
confidential business information obtained during a warehouse 
examination or other function performed as part of the duties of the 
officer, employee, or agent under this Act.

``SEC. 15. PENALTIES FOR NONCOMPLIANCE.

    ``If a person fails to comply with any requirement of this Act 
(including regulations promulgated under this Act), the Secretary may 
assess, on the record after an opportunity for a hearing, a civil 
penalty--
            ``(1) of not more than $25,000 per violation, if an 
        agricultural product is not involved in the violation; or
            ``(2) of not more than 100 percent of the value of the 
        agricultural product, if an agricultural product is involved in 
        the violation.

``SEC. 16. JURISDICTION AND ARBITRATION.

    ``(a) Federal Jurisdiction.--A district court of the United States 
shall have exclusive jurisdiction over any action brought under this 
Act without regard to the amount in controversy or the citizenship of 
the parties.
    ``(b) Arbitration.--Nothing in this Act prevents the enforceability 
of an agreement to arbitrate that would otherwise be enforceable under 
chapter 1 of title 9, United States Code.

``SEC. 17. REGULATIONS.

    ``The Secretary shall promulgate such regulations as the Secretary 
considers necessary to carry out this Act.

``SEC. 18. AUTHORIZATION OF APPROPRIATION.

    ``There are authorized to be appropriated such sums as are 
necessary to carry out this Act.''.

                        TITLE III--MISCELLANEOUS

SEC. 301. ENERGY GENERATION, TRANSMISSION, AND DISTRIBUTION FACILITIES 
              EFFICIENCY GRANTS IN RURAL COMMUNITIES WITH EXTREMELY 
              HIGH ENERGY COSTS.

    Title I of the Rural Electrification Act of 1936 (7 U.S.C. 901 et 
seq.) is amended by adding at the end the following:

``SEC. 19. ENERGY GENERATION, TRANSMISSION, AND DISTRIBUTION FACILITIES 
              EFFICIENCY GRANTS IN RURAL COMMUNITIES WITH EXTREMELY 
              HIGH ENERGY COSTS.

    ``(a) In General.--The Secretary, acting through the Rural 
Utilities Service, may--
            ``(1) in coordination with State rural development 
        initiatives, make grants and loans to persons, States, 
        political subdivisions of States, and other entities organized 
        under the laws of States to develop, upgrade, and improve the 
        efficiency of energy generation, transmission, and distribution 
        facilities in communities in which the average residential 
        expenditure for home energy is at least 275 percent of the 
        national average residential expenditure for home energy (as 
        determined by the Energy Information Agency using the most 
        recent data available);
            ``(2) make direct payments to the Denali Commission 
        established by the Denali Commission Act of 1998 (42 U.S.C. 
        3121 note; Public Law 105-277) to develop, upgrade, and improve 
        the efficiency of energy generation, transmission, and 
        distribution facilities in communities described in paragraph 
        (1); and
            ``(3) make grants to State entities, in existence as of the 
        date of enactment of this section, to establish and support a 
        revolving fund to provide a more cost-effective means of 
        purchasing fuel where the fuel cannot be shipped by means of 
        surface transportation.
    ``(b) Authorization of Appropriations.--
            ``(1) In general.--There are authorized to be appropriated 
        to carry out this section $50,000,000 for fiscal year 2001 and 
        such sums as are necessary for each subsequent fiscal year.
            ``(2) Limitation on planning and administrative expenses.--
        Not more than 4 percent of the amounts made available under 
        paragraph (1) may be used for planning and administrative 
        expenses.''.

SEC. 302. CARRY FORWARD ADJUSTMENT.

    The amendments made by section 204(b)(10)(A) of the Agricultural 
Risk Protection Act of 2000 shall apply beginning with undermarketings 
of the 2001 crop of burley tobacco and with marketings of the 2002 crop 
of burley tobacco.

SEC. 303. FEES AND PENALTIES FOR MEDIATION AND ARBITRATION OF DISPUTES 
              INVOLVING AGRICULTURAL PRODUCTS MOVING IN FOREIGN 
              COMMERCE UNDER MULTINATIONAL ENTITIES.

    Section 203(e) of the Agricultural Marketing Act of 1946 (7 U.S.C. 
1622(e)) is amended--
            (1) by striking ``(e) To'' and inserting the following:
    ``(e) Development of New Markets.--
            ``(1) In general.--To''; and
            (2) by adding at the end the following:
            ``(2) Fees and penalties.--
                    ``(A) In general.--In carrying out paragraph (1), 
                the Secretary may assess and collect reasonable fees 
                and late payment penalties to mediate and arbitrate 
                disputes arising between parties in connection with 
                transactions involving agricultural products moving in 
                foreign commerce under the jurisdiction of a 
                multinational entity.
                    ``(B) Deposit.--Fees and penalties collected under 
                subparagraph (A) shall be deposited into the account 
                that incurred the cost of providing the mediation or 
                arbitration service.
                    ``(C) Availability.--Fees and penalties collected 
                under subparagraph (A) shall be available to the 
                Secretary without further Act of appropriation and 
                shall remain available until expended to pay the 
                expenses of the Secretary for providing mediation and 
                arbitration services under this paragraph.
                    ``(D) No requirement for use of services.--No 
                person shall be required by the Secretary to use the 
                mediation and arbitration services provided under this 
                paragraph.''.

SEC. 304. COMMUNITY FACILITIES GRANT PROGRAM FOR RURAL COMMUNITIES WITH 
              EXTREME UNEMPLOYMENT AND SEVERE ECONOMIC DEPRESSION.

    (a) In General.--Section 306(a) of the Consolidated Farm and Rural 
Development Act (7 U.S.C. 1926(a)) is amended by adding at the end the 
following:
            ``(20) Community facilities grant program for rural 
        communities with extreme unemployment and severe economic 
        depression.--
                    ``(A) Definition of not employed rate.--In this 
                paragraph, the term `not employed rate', with respect 
                to a community, means the percentage of individuals 
                over the age of 18 who reside within the community and 
                who are ready, willing, and able to be employed but are 
                unable to find employment, as determined by the 
                department of labor of the State in which the community 
                is located.
                    ``(B) Grant authority.--The Secretary may make 
                grants to associations, units of general local 
                government, nonprofit corporations, and Indian tribes 
                (as defined in section 4 of the Indian Self-
                Determination and Education Assistance Act (25 U.S.C. 
                450b)) in a State to provide the Federal share of the 
                cost of developing specific essential community 
                facilities in rural communities with respect to which 
                the not employed rate is greater than the lesser of--
                            ``(i) 500 percent of the average national 
                        unemployment rate on the date of enactment of 
                        this paragraph, as determined by the Bureau of 
                        Labor Statistics; or
                            ``(ii) 200 percent of the average national 
                        unemployment rate during the Great Depression, 
                        as determined by the Bureau of Labor 
                        Statistics.
                    ``(C) Federal share.--Paragraph (19)(B) shall apply 
                to a grant made under this paragraph.
                    ``(D) Authorization of appropriations.--There are 
                authorized to be appropriated to carry out this 
                paragraph $50,000,000 for fiscal year 2001 and such 
                sums as are necessary for each subsequent fiscal year, 
                of which not more than 5 percent of the amount made 
                available for a fiscal year shall be available for 
                community planning and implementation.''.
    (b) Conforming Amendment.--Section 381E(d)(1)(B) of the 
Consolidated Farm and Rural Development Act (7 U.S.C. 2009d(d)(1)(B)) 
is amended by striking ``section 306(a)(19)'' and inserting ``paragraph 
(19) or (20) of section 306(a)''.

SEC. 305. ELIGIBILITY FOR BUSINESS AND INDUSTRY LOANS.

    (a) In General.--Section 310B of the Consolidated Farm and Rural 
Development Act (7 U.S.C. 1932) is amended--
            (1) by striking ``Sec. 310B. (a) The'' and inserting the 
        following:

``SEC. 310B. RURAL INDUSTRIALIZATION ASSISTANCE.

    ``(a) Loans for Private Business Enterprises.--
            ``(1) In general.--The''; and
            (2) in subsection (a)--
                    (A) by striking ``of (1) improving'' and inserting 
                the following: ``of--
                    ``(A) improving'';
                    (B) by striking ``control, (2) the conservation, 
                development, and use of'' and inserting the following: 
                ``control;
                    ``(B) conserving, developing, and using'';
                    (C) by striking ``areas, (3) reducing'' and 
                inserting the following: ``areas;
                    ``(C) reducing'';
                    (D) by striking ``areas, and (4) to facilitate'' 
                and inserting the following: ``areas; and'';
                    ``(D) facilitating'';
                    (E) by striking ``For the purposes of'' and 
                inserting the following:
            ``(2) Definition of solar energy.--In'';
                    (F) by striking ``Such loans,'' and inserting the 
                following:
            ``(3) Applicability of certain limitations.--Loans under 
        this subsection,'';
                    (G) by striking ``As used in'' and inserting the 
                following:
            ``(4) Definition of aquaculture.--In'';
                    (H) by striking ``No loan'' and inserting the 
                following:
            ``(5) Loan limitation.--No loan''; and
                    (I) by adding at the end the following:
            ``(6) Eligibility for business and industry loans.--
        Notwithstanding section 381A(1), a loan may be made under 
        paragraph (1)(A) for a project or facility in a city or town 
        with a population in excess of 50,000 inhabitants, and its 
        immediately adjacent urbanized area, if the Secretary 
        determines that--
                    ``(A) the project or facility will be used for the 
                processing of an agricultural commodity;
                    ``(B) the loan will be used for purchasing supplies 
                for, refurbishing, or equipping an existing project or 
                facility, and not for new construction of a project or 
                facility; and
                    ``(C) the primary economic beneficiaries of the 
                project or facility will be producers of agricultural 
                commodities.''.
    (b) Conforming Amendments.--
            (1) Section 307(a)(6)(B)(ii) of the Consolidated Farm and 
        Rural Development Act (7 U.S.C. 1927(a)(6)(B)(ii)) is amended 
        by striking ``clause (1) of section 310B(a)'' and inserting 
        ``section 310B(a)(1)(A)''.
            (2) Section 381E(d)(3)(B) of the Consolidated Farm and 
        Rural Development Act (7 U.S.C. 2009d(d)(3)(B)) is amended by 
        striking ``section 310B(a)(1)'' and inserting ``section 
        310B(a)(1)(A)''.
    (c) Regulations.--Not later than 30 days after the date of 
enactment of this Act, the Secretary of Agriculture shall promulgate 
interim final regulations to implement the amendments made by this 
section.

SEC. 306. STATE AGRICULTURAL LOAN MEDIATION PROGRAMS.

    Section 506 of the Agricultural Credit Act of 1987 (7 U.S.C. 5106) 
is amended by striking ``2000'' and inserting ``2005''.

SEC. 307. ADJUSTMENTS TO NUTRITION PROGRAMS.

    (a) Cost-of-Living Allowances for Members of Uniformed Services.--
Section 17(d)(2)(B)(ii) of the Child Nutrition Act of 1966 (42 U.S.C. 
1786(d)(2)(B)(ii)) is amended by striking ``continental'' and inserting 
``contiguous States of the''.
    (b) Demonstration Project.--Effective October 1, 2000, section 
17(r)(1) of the Child Nutrition Act of 1966 (42 U.S.C. 1786(r)(1)) is 
amended by striking ``at least 20 local agencies'' and inserting ``not 
more than 20 local agencies''.
    (c) Child and Adult Care Food Program.--Section 17 of the Richard 
B. Russell National School Lunch Act (42 U.S.C. 1766) is amended--
            (1) by striking the section heading and all that follows 
        through ``Sec. 17.'' and inserting the following:

``SEC. 17. CHILD AND ADULT CARE FOOD PROGRAM.'';

        and
            (2) in subsection (a)(6)(C)(ii), by striking ``and'' at the 
        end.
                                                       Calendar No. 767

106th CONGRESS

  2d Session

                                S. 3001

                          [Report No. 106-391]

_______________________________________________________________________

                                 A BILL

To amend the United States Grain Standards Act to extend the authority 
      of the Secretary of Agriculture to collect fees, extend the 
authorization of appropriations, and improve the administration of that 
Act, to amend the United States Warehouse Act to authorize the issuance 
       of electronic warehouse receipts, and for other purposes.

_______________________________________________________________________

                            August 25, 2000

            Reported, read twice, and placed on the calendar
```