for projects that encourage the production and marketing
of value-added agricultural commodities.’’.
(b) REPORT
ON OTHER ASSISTANCE.—Not later
than one year after the date of the enactment of this Act,
the Secretary of Agriculture shall submit to Congress a
report specifying the Federal programs available to agri-
cultural producers, cooperative organizations of producers,
and rural communities under which loans or grants may
be made to support the development of production and
marketing facilities for value-added agricultural commod-
ities.
SEC. 212. ESTABLISHMENT OF SMALL BUSINESS DISASTER
ASSISTANCE PROGRAM.
The Small Business Administrator shall implement a
program that allows any small business concern, rancher,
or farmer directly affected by low commodity prices to
have access to low interest loans similar to those allowed
under areas classified as federal disaster areas.
Subtitle C—Meat Labeling
SEC. 221. DEFINITIONS.
Section 1 of the Federal Meat Inspection Act (21
U.S.C. 601) is amended by adding at the end the follow-
ing:
‘‘(w) BEEF.—The term ‘beef’ means meat produced
from cattle (including veal).
‘‘(x) LAMB.—The term ‘lamb’ means meat, other
than mutton, produced from sheep.
‘‘(y) BEEF BLENDED WITH IMPORTED MEAT.—The
term ‘beef blended with imported meat’ means ground
beef, or beef in another meat food product that contains
United States beef and any imported meat.
‘‘(z) LAMB BLENDED WITH IMPORTED MEAT.—The
term ‘lamb blended with imported meat’ means ground
meat, or lamb in another meat food product, that contains
United States lamb and any imported meat.
‘‘(aa) IMPORTED BEEF.—The term ‘imported beef’
means any beef, including any fresh muscle cuts, ground
meat, trimmings, and beef in another meat food product,
that is not United States beef, whether or not the beef
is graded with a quality grade issued by the Secretary.
‘‘(bb) IMPORTED LAMB.—The term ‘imported lamb’
means any lamb, including any fresh muscle cuts, ground
meat, trimmings, and lamb in another meat food product,
that is not United States lamb, whether or not the lamb
is graded with a quality grade issued by the Secretary.
‘‘(cc) UNITED STATES BEEF.—
‘‘(1) IN GENERAL.—The term ‘United States
beef’ means beef produced from cattle slaughtered in
the United States.
‘‘(2) EXCLUSIONS.—The term ‘United States
beef’ does not include—
‘‘(A) beef produced from cattle imported
into the United States in sealed trucks for
slaughter;
‘‘(B) beef produced from imported car-
casses;
‘‘(C) imported beef trimmings; or
‘‘(D) imported boxed beef.
‘‘(dd) UNITED STATES LAMB.—
‘‘(1) IN GENERAL.—The term ‘United States
lamb’ means lamb, except mutton, produced from
sheep slaughtered in the United States.
‘‘(2) EXCLUSIONS.—The term ‘United States
lamb’ does not include—
‘‘(A) lamb produced from sheep imported
into the United States in sealed trucks for
slaughter;
‘‘(B) lamb produced from an imported car-
cass;
‘‘(C) imported lamb trimmings; or
‘‘(D) imported boxed lamb.’’.
SEC. 222. LABELING OF IMPORTED MEAT AND MEAT FOOD
PRODUCTS.
(a) LABELING REQUIREMENT.—
(1) IN GENERAL.—Section 1(n) of the Federal
Meat Inspection Act (21 U.S.C. 601(n)) is amended
by adding at the end the following:
‘‘(13)(A) If it is imported beef or imported
lamb offered for retail sale as fresh muscle cuts of
beef or lamb and is not accompanied by labeling that
identifies it as imported beef or imported lamb.
‘‘(B) If it is United States beef or United
States lamb offered for retail sale, or offered and in-
tended for export as fresh muscle cuts of beef or
lamb, and is not accompanied by labeling that iden-
tifies it as United States beef or United States lamb.
‘‘(C) If it is United States or imported ground
beef or other processed beef or lamb product and is
not accompanied by labeling that identifies it as
United States beef or United States lamb, imported
beef or imported lamb, beef blended with imported
meat or lamb blended with imported meat, or other
designation that identifies the percentage content of
United States beef and imported beef United States
lamb and imported lamb or contained in the prod-
uct, as determined by the Secretary under section
7(g).’’.
(2) CONFORMING AMENDMENT.—Section 20(a)
of the Federal Meat Inspection Act (21 U.S.C.
620(a)) is amended by adding at the end the follow-
ing: ‘‘All imported beef or imported lamb offered for
retail sale as fresh muscle cuts of beef or lamb shall
be plainly and conspicuously marked, labeled, or oth-
erwise identified as imported beef or imported
lamb.’’.
(b) GROUND OR PROCESSED BEEF AND LAMB.—Sec-
tion 7 of the Federal Meat Inspection Act (21 U.S.C. 607)
is amended by adding at the end the following:
‘‘(g) GROUND OR PROCESSED BEEF AND LAMB.—
‘‘(1) VOLUNTARY LABELING.—Subject to para-
graph (2), the Secretary shall provide by regulation
for the voluntary labeling or identification of ground
beef or lamb, other processed beef or lamb products
as United States beef or United States lamb, im-
ported beef or imported lamb, beef blended with im-
ported meat or lamb blended with imported meat, or
other designation that identifies the percentage con-
tent of United States and imported beef or imported
lamb contained in the product, as determined by the
Secretary.
‘‘(2) MANDATORY LABELING.—
‘‘(A) IN GENERAL.—Except as provided in
subparagraph (B), not later than 18 months
after the date of enactment of this subsection,
the Secretary shall provide by regulation for the
mandatory labeling or identification of ground
beef or lamb, other processed beef or lamb
products as United States beef or United States
lamb, imported beef or imported lamb, beef
blended with imported meat or lamb blended
with imported meat, or other designation that
identifies the percentage content of United
States and imported beef or imported lamb con-
tained in the product, as determined by the
Secretary.
‘‘(B) APPLICATION.—Subparagraph (A)
shall not apply to the extent the Secretary de-
termines that the costs associated with labeling
under subparagraph (A) would result in an un-
reasonable burden on producers, processors, re-
tailers, or consumers.’’.
(c) GROUND BEEF AND GROUND LAMB LABELING
STUDY.—
(1) IN GENERAL.—The Secretary of Agriculture
shall conduct a study of the effects of the mandatory
use of imported, blended, or percentage content la-
beling on ground beef, ground lamb, and other proc-
essed beef or lamb products made from imported
beef or imported lamb.
(2) COSTS AND RESPONSES.—The study shall
be designed to evaluate the costs associated with and
consumer response toward the mandatory use of la-
beling described in paragraph (1).
(3) REPORT.—Not later than 1 year after the
date of enactment of this Act, the Secretary shall re-
port the findings of the study conducted under para-
graph (1) to the Committee on Agriculture of the
House of Representatives and the Committee on Ag-
riculture, Nutrition, and Forestry of the Senate.
SEC. 223 REGULATIONS.
Not later than 120 days after the date of enactment
of this Act, the Secretary of Agriculture shall promulgate
final regulations to carry out the amendments made by
this subtitle.
Subtitle D—Other Matters
Regarding Trade
SEC. 231. STUDY OF LICENSING AND REGISTRATION PRO-
CEDURES 
UNDER 
FEDERAL 
INSECTICIDE,
FUNGICIDE, AND RODENTICIDE ACT.
(a) STUDY REQUIRED.—The Secretary of Agriculture
and the Administrator of the Environmental Protection
Agency shall jointly conduct a study comparing the proce-
dures by which herbicides and pesticides are licensed and
registered under the Federal Insecticide, Fungicide, and
Rodenticide Act (7 U.S.C. 121 et seq.) for use by agricul-
tural producers in the United States and the licensing and
registration procedures used in Canada for herbicides and
pesticides. As part of the study, the Secretary and the Ad-
ministrator shall consider whether the United States pro-
cedures may be safely changed to more closely parallel the
Canadian procedures.
(b) SUBMISSION OF STUDY.—Not later than one year
after the date of the enactment of this Act, the Secretary
and the Administrator shall submit to Congress a report
containing the results of the study.
SEC. 232. LIVESTOCK INDUSTRY IMPROVEMENT.
(a) DOMESTIC MARKET REPORTING.—
(1) IN GENERAL.—Section 203(g) of the Agri-
cultural Marketing Act of 1946 (7 U.S.C. 1622(g))
is amended—
(A) by striking ‘‘(g) To’’ and inserting the
following:
‘‘(g) COLLECTION AND DISSEMINATION OF MARKET-
ING INFORMATION.—
‘‘(1) IN GENERAL.—The Secretary shall’’; and
(B) by adding at the end the following:
‘‘(2) DOMESTIC MARKET REPORTING.—
‘‘(A) MANDATORY REPORTING PILOT PRO-
GRAM.—
‘‘(i) IN
GENERAL.—The Secretary
shall conduct a 3-year pilot program under
which the Secretary shall require any per-
son or class of persons engaged in the
business of buying, selling, or marketing
livestock, livestock products, meat, or meat
products in an unmanufactured form to re-
port to the Secretary in such manner as
the Secretary shall require, such informa-
tion relating to prices and the terms of
sale for the procurement of livestock, live-
stock products, meat, or meat products in
an unmanufactured form as the Secretary
determines is necessary to carry out this
subsection.
‘‘(ii) NONCOMPLIANCE.—It shall be
unlawful for a person engaged in the busi-
ness of buying, selling, or marketing live-
stock, livestock products, meat, or meat
products in an unmanufactured form to
knowingly fail or refuse to provide to the
Secretary information required to be re-
ported under subparagraph (A).
‘‘(iii) CEASE AND DESIST AND CIVIL
PENALTY.—
‘‘(I) IN
GENERAL.—If the Sec-
retary has reason to believe that a
person engaged in the business of
buying, selling, or marketing livestock,
livestock products, meat, or meat
products in an unmanufactured form
is violating the provisions of subpara-
graph (A) (or regulation promulgated
under subparagraph (A)), the Sec-
retary after notice and opportunity for
hearing, may make an order to cease
and desist from continuing the viola-
tion and assess a civil penalty of not
more than $10,000 for each violation.
‘‘(II) CONSIDERATIONS.—In de-
termining the amount of a civil pen-
alty to be assessed under clause (i),
the Secretary shall consider the grav-
ity of the offense, the size of the busi-
ness involved, and the effect of the
penalty on the ability of the person to
continue in business.
‘‘(iv) REFERRAL TO ATTORNEY GEN-
ERAL.—If, after expiration of the period
for appeal or after the affirmance of a civil
penalty assessed under clause (iii), the per-
son against whom the civil penalty is as-
sessed fails to pay the civil penalty, the
Secretary may refer the matter to the At-
torney General, who may recover the
amount of the civil penalty in a civil action
in United States district court.
‘‘(B) VOLUNTARY REPORTING.—The Sec-
retary shall encourage voluntary reporting by
persons engaged in the business of buying, sell-
ing, or marketing livestock, livestock products,
meats, or meat products in an unmanufactured
form that are not subjected to a mandatory re-
porting requirement under subparagraph (A).
‘‘(C) AVAILABILITY
OF
INFORMATION.—
The Secretary shall make information received
under this paragraph available to the public
only in a form that ensures that—
‘‘(i) the identity of the person submit-
ting a report is not disclosed; and
‘‘(ii) the confidentiality of proprietary
business information is otherwise pro-
tected.
‘‘(D) EFFECT ON OTHER LAWS.—Nothing
in this paragraph restricts or modifies the au-
thority of the Secretary to collect voluntary re-
ports in accordance with other provisions of
law.’’.
(2) TECHNICAL AMENDMENT.—Section 203 of
the Agricultural Marketing Act of 1946 (7 U.S.C.
1622) is amended—
(A) by striking ‘‘The Secretary is directed
and authorized:’’; and
(B) in the first sentence of each of sub-
sections (a) through (f) and subsections (h)
through (n), by striking ‘‘To’’ and inserting
‘‘The Secretary shall’’.
(b) PROHIBITION
ON
NONCOMPETITIVE
PRAC-
TICES.—Section 202 of the Packers and Stockyards Act,
1921 (7 U.S.C. 192), is amended—
(1) in subsection (g), by striking the period at
the end and inserting ‘‘; or’’; and
(2) by adding at the end the following:
‘‘(h) Engage in any practice or device that the Sec-
retary by regulation, after consultation with producers of
cattle, lamb, and hogs, and other persons in the cattle,
lamb, and hog industries, determines is a detrimental non-
competitive practice or device relating to the price or a
term of sale for the procurement of livestock or the sale
of meat or other byproduct of slaughter.’’.
(c) 
PROTECTION
OF
LIVESTOCK
PRODUCERS
AGAINST RETALIATION BY PACKERS.—
(1) 
RETALIATION
PROHIBITED.—Section
202(b) of the Packers and Stockyards Act, 1921 (7
U.S.C. 192(b)), is amended—
(A) by striking ‘‘or subject’’ and inserting
‘‘subject’’; and
(B) by inserting before the semicolon at
the end the following: ‘‘, or retaliate against
any livestock producer on account of any state-
ment made by the producer (whether made to
the Secretary or a law enforcement agency or in
a public forum) regarding an action of any
packer’’.
(2) SPECIAL REQUIREMENTS REGARDING ALLE-
GATIONS
OF
RETALIATION.—Section 203 of the
Packers and Stockyards Act, 1921 (7 U.S.C. 193),
is amended by adding at the end the following:
‘‘(e) SPECIAL PROCEDURES REGARDING ALLEGA-
TIONS OF RETALIATION.—
‘‘(1) CONSIDERATION BY SPECIAL PANEL.—The
President shall appoint a special panel consisting of
3 members to receive and initially consider a com-
plaint submitted by any person that alleges prohib-
ited packer retaliation under section 202(b) directed
against a livestock producer.
‘‘(2) COMPLAINT; HEARING.—If the panel has
reason to believe from the complaint or resulting in-
vestigation that a packer has violated or is violating
the retaliation prohibition under section 202(b), the
panel shall notify the Secretary who shall cause a
complaint to be issued against the packer, and a
hearing conducted, under subsection (a).
‘‘(3) EVIDENTIARY STANDARD.—In the case of
a complaint regarding retaliation prohibited under
section 202(b), the Secretary shall find that the
packer involved has violated or is violating section
202(b) if the finding is supported by a preponder-
ance of the evidence.’’.
(3) DAMAGES FOR PRODUCERS SUFFERING RE-
TALIATION.—Section 203 of the Packers and Stock-
yards Act, 1921 (7 U.S.C. 193) (as amended by
subsection (b)), is amended by adding at the end the
following:
‘‘(f) DAMAGES FOR PRODUCERS SUFFERING RETAL-
IATION.—
‘‘(1) IN GENERAL.—If a packer violates the re-
taliation prohibition under section 202(b), the pack-
er shall be liable to the livestock producer injured by
the retaliation for not more than 3 times the amount
of damages sustained as a result of the violation.
‘‘(2) ENFORCEMENT.—The liability may be en-
forced either by complaint to the Secretary, as pro-
vided in subsection (e), or by suit in any court of
competent jurisdiction.
‘‘(3) OTHER REMEDIES.—This subsection shall
not abridge or alter a remedy existing at common
law or by statute. The remedy provided by this sub-
section shall be in addition to any other remedy.’’.
(d) REVIEW
OF FEDERAL AGRICULTURE CREDIT
POLICIES.—The Secretary of Agriculture, in consultation
with the Secretary of the Treasury, the Chairman of the
Board of Governors of the Federal Reserve System, and
the Chairman of the Board of the Farm Credit Adminis-
tration, shall establish an interagency working group to
study—
(1) the extent to which Federal lending prac-
tices and policies have contributed, or are contribut-
ing, to market concentration in the livestock and
dairy sectors of the national economy; and
(2) whether Federal policies regarding the fi-
nancial system of the United States adequately take
account of the weather and price volatility risks in-
herent in livestock and dairy enterprises.
TITLE III—TAX PROVISIONS
SEC. 301. REDUCTION IN INDIVIDUAL CAPITAL GAINS TAX
RATES.
(a) IN GENERAL.—Subsection (h) of section 1 of the
Internal Revenue Code of 1986 is amended to read as fol-
lows:
‘‘(h) MAXIMUM CAPITAL GAINS RATE.—
‘‘(1) IN GENERAL.—If a taxpayer has a net
capital gain for any taxable year, the tax imposed by
this section for such taxable year shall not exceed
the sum of—
‘‘(A) a tax computed at the rates and in
the same manner as if this subsection had not
been enacted on taxable income reduced by the
net capital gain,
‘‘(B) 7.5 percent of so much of the net
capital gain (or, if less, taxable income) as does
not exceed the excess (if any) of—
‘‘(i) the amount of taxable income
which would (without regard to this para-
graph) be taxed at a rate below 28 per-
cent, over
‘‘(ii) the taxable income reduced by
the net capital gain, and
‘‘(C) 15 percent of the amount of taxable
income in excess of the sum of the amounts on
which tax is determined under subparagraphs
(A) and (B).
‘‘(2) NET CAPITAL GAIN TAKEN INTO ACCOUNT
AS INVESTMENT INCOME.—For purposes of this sub-
section, the net capital gain for any taxable year
shall be reduced (but not below zero) by the amount
which the taxpayer takes into account as investment
income under section 163(d)(4)(B)(iii).’’.
(b) ALTERNATIVE MINIMUM TAX.—Paragraph (3) of
section 55(b) of such Code is amended to read as follows:
‘‘(3) MAXIMUM RATE OF TAX ON NET CAPITAL
GAIN OF NONCORPORATE TAXPAYERS.—The amount
determined under the first sentence of paragraph
(1)(A)(i) shall not exceed the sum of—
‘‘(A) the amount determined under such
first sentence computed at the rates and in the
same manner as if this paragraph had not been
enacted on the taxable excess reduced by the
net capital gain,
‘‘(B) 7.5 percent of so much of the net
capital gain (or, if less, taxable excess) as does
not exceed the amount on which a tax is deter-
mined under section 1(h)(1)(B), and
‘‘(C) 15 percent of the amount of taxable
excess in excess of the sum of the amounts on
which tax is determined under subparagraphs
(A) and (B).’’.
(c) CONFORMING AMENDMENTS.—
(1) Paragraph (1) of section 1445(e) of such
Code is amended by striking ‘‘20 percent’’ and in-
serting ‘‘15 percent’’.
(2) 
The 
second 
sentence 
of 
section
7518(g)(6)(A) of such Code, and the second sen-
tence of section 607(h)(6)(A) of the Merchant Ma-
rine Act, 1936, are each amended by striking ‘‘20
percent’’ and inserting ‘‘15 percent’’.
(3) Section 311 of the Taxpayer Relief Act of
1997 is amended by striking subsection (e).
(4) Paragraph (7) of section 57(a) of such Code
(as amended by the Internal Revenue Service Re-
structuring and Reform Act of 1998) is amended by
striking the last sentence.
(5) Paragraphs (11) and (12) of section 1223,
and section 1235(a), of such Code (as amended by
the Internal Revenue Service Restructuring and Re-
form Act of 1998) are each amended by striking ‘‘18
months’’ each place it appears and inserting ‘‘1
year’’.
(d) TRANSITIONAL RULES
FOR TAXABLE YEARS
WHICH INCLUDE JUNE 24, 1998.—
(1) IN GENERAL.—Subsection (h) of section 1
of such Code (as amended by the Internal Revenue
Service Restructuring and Reform Act of 1998) is
amended by adding at the end the following new
paragraph:
‘‘(14) SPECIAL
RULES
FOR
TAXABLE
YEARS
WHICH INCLUDE JUNE 24, 1998.—For purposes of
applying this subsection in the case of a taxable year
which includes June 24, 1998—
‘‘(A) Gains or losses properly taken into
account for the period on or after such date
shall be disregarded in applying paragraph
(5)(A)(i), subclauses (I) and (II) of paragraph
(5)(A)(ii), paragraph (5)(B), paragraph (6),
and paragraph (7)(A).
‘‘(B) The amount determined under sub-
paragraph (B) of paragraph (1) shall be the
sum of—
‘‘(i) 7.5 percent of the amount which
would be determined under such subpara-
graph if the amount of gain taken into ac-
count under such subparagraph did not ex-
ceed the net capital gain taking into ac-
count only gain or loss properly taken into
account for the portion of the taxable year
on or after such date, plus
‘‘(ii) 10 percent of the excess of the
amount determined under such subpara-
graph (determined without regard to this
paragraph) over the amount determined
under clause (i).
‘‘(C) The amount determined under sub-
paragraph (C) of paragraph (1) shall be the
sum of—
‘‘(i) 15 percent of the amount which
would be determined under such subpara-
graph if the adjusted net capital gain did
not exceed the net capital gain taking into
account only gain or loss properly taken
into account for the portion of the taxable
year on or after such date, plus
‘‘(ii) 20 percent of the excess of the
amount determined under such subpara-
graph (determined without regard to this
paragraph) over the amount determined
under clause (i).
‘‘(D) Rules similar to the rules of para-
graph (13)(C) shall apply.’’.
(2) ALTERNATIVE
MINIMUM
TAX.—Paragraph
(3) of section 55(b) of such Code (as amended by
the Internal Revenue Service Restructuring and Re-
form Act of 1998) is amended by adding at the end
the following new sentence: ‘‘For purposes of apply-
ing this paragraph for a taxable year which includes
June 24, 1998, rules similar to the rules of section
1(h)(14) shall apply.’’.
(e) EFFECTIVE DATES.—
(1) IN
GENERAL.—Except as otherwise pro-
vided in this subsection, the amendments made by
this section shall apply to taxable years beginning on
or after June 24, 1998.
(2) TRANSITIONAL RULES FOR TAXABLE YEARS
WHICH INCLUDE JUNE 24, 1998.—The amendments
made by subsection (d) shall apply to taxable years
beginning before such date and ending on or after
June 24, 1998.
(3) WITHHOLDING.—The amendment made by
subsection (c)(1) shall apply only to amounts paid
after the date of the enactment of this Act.
(4) CERTAIN CONFORMING AMENDMENTS.—The
amendments made by subsection (c)(5) shall take ef-
fect on June 24, 1998.
SEC. 302. REPEAL OF ESTATE AND GIFT TAXES.
(a) IN GENERAL.—Subtitle B of the Internal Reve-
nue Code of 1986 (relating to estate, gift, and generation-
skipping taxes) is hereby repealed.
(b) EFFECTIVE DATE.—The repeal made by sub-
section (a) shall apply to estates of decedents dying, gifts
made, and generation-skipping transfers made after the
date of the enactment of this Act.
SEC. 303. PERMANENT EXTENSION OF INCOME AVERAGING
FOR FARMERS.
Section 933(c) of the Taxpayer Relief Act of 1997
(Public Law 104–34; 111 Stat. 882) is amended by strik-
ing ‘‘, and before January 1, 2001’’.
Æ