IB 
Union Calendar No. 467
108TH CONGRESS 
2D SESSION 
H. R. 3242
[Report No. 108–750, Part I] 
To ensure an abundant and affordable supply of highly nutritious fruits, 
vegetables, and other specialty crops for American consumers and inter-
national markets by enhancing the competitiveness of United States-
grown specialty crops, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
OCTOBER 2, 2003
Mr. OSE (for himself, Mr. DOOLEY of California, Mr. ACEVEDO-VILA´, Mr. 
ENGLISH, Mr. FILNER, Mrs. KELLY, Mr. KOLBE, Mr. LARSEN of Wash-
ington, Mr. MCHUGH, Mr. NUNES, Mr. RADANOVICH, Mr. SCOTT of 
Georgia, Mr. THOMPSON of California, Mr. GALLEGLY, Mr. CARDOZA, 
Mr. DEFAZIO, Mr. KINGSTON, Mr. WU, Mr. HINOJOSA, and Mr. FARR) 
introduced the following bill; which was referred to the Committee on Ag-
riculture, and in addition to the Committee on Ways and Means, for a 
period to be subsequently determined by the Speaker, in each case for 
consideration of such provisions as fall within the jurisdiction of the com-
mittee concerned 
OCTOBER 6, 2004
Additional sponsors: Mr. CALVERT, Mr. GOODE, Mr. PETERSON of Minnesota, 
Mr. HOUGHTON, Mr. ETHERIDGE, Mr. PASTOR, Mr. THOMPSON of Mis-
sissippi, Mr. FOLEY, Mrs. BONO, Mr. OBERSTAR, Mrs. CAPPS, Mr. 
UPTON, Mr. DINGELL, Ms. HARRIS, Mr. CAMP, Mr. RODRIGUEZ, Mr. 
LUCAS of Kentucky, Mr. POMBO, Ms. WOOLSEY, Mr. LEWIS of Kentucky, 
Ms. MCCOLLUM, Mrs. MUSGRAVE, Mr. BEAUPREZ, Mr. UDALL of Colo-
rado, Mr. WILSON of South Carolina, Mr. KILDEE, Mr. RAHALL, Mr. 
GEORGE MILLER of California, Mr. PUTNAM, Mr. CASE, Mr. SPRATT, 
Mr. MICHAUD, Mr. HERGER, Mr. HINCHEY, Mrs. MILLER of Michigan, 
Mr. ABERCROMBIE, Mr. BILIRAKIS, Mr. BACA, Mr. GRIJALVA, Ms. 
SLAUGHTER, Mr. POMEROY, Mr. LAMPSON, Mr. ALLEN, Mr. HONDA, Mr. 
MCINTYRE, Mr. BLUMENAUER, Mr. ISSA, Ms. KAPTUR, Mr. JENKINS, 
Mr. BISHOP of New York, Mr. LOBIONDO, Mr. ANDREWS, Mr. HASTINGS 
of Washington, Mr. STUPAK, Mr. MORAN of Virginia, Mr. COLLINS, Ms.
LOFGREN, Mr. ISAKSON, Mr. BURR, Mr. RUPPERSBERGER, Mr. WALDEN 
of Oregon, Mr. BOUCHER, Mr. SHERWOOD, Ms. ROS-LEHTINEN, Ms. 
GINNY BROWN-WAITE of Florda, Mr. MATSUI, Ms. HOOLEY of Oregon, 
Mr. PRICE of North Carolina, Mr. PLATTS, Mr. GORDON, Ms. LEE, Mr. 
GILCHREST, Mr. HOYER, Mrs. EMERSON, Mr. MILLER of North Carolina, 
Mr. SHUSTER, Mr. TAYLOR of North Carolina, Mrs. TAUSCHER, Mr. SIM-
MONS, Mr. LARSON of Connecticut, Mr. HOLDEN, Ms. ESHOO, Mr. KEN-
NEDY of Rhode Island, Ms. DELAURO, Mr. PETERSON of Pennsylvania, 
Mr. DOOLITTLE, Mr. CLYBURN, Mr. WAXMAN, Ms. ROYBAL-ALLARD, 
Mrs. DAVIS of California, Ms. HARMAN, Ms. MILLENDER-MCDONALD, 
Mrs. NAPOLITANO, Ms. PELOSI, Ms. LORETTA SANCHEZ of California, 
Mr. SCHIFF, Mr. SHERMAN, Ms. SOLIS, Ms. WATSON, Ms. LINDA T. 
SA´NCHEZ of California, Mr. LANTOS, Mr. BERMAN, Mr. BECERRA, and 
Mr. BUTTERFIELD 
OCTOBER 6, 2004
Reported from the Committee on Agriculture with an amendment 
[Strike out all after the enacting clause and insert the part printed in italic] 
OCTOBER 6, 2004
Referral to the Committee on Ways and Means extended for a period ending 
not later than October 6, 2004
OCTOBER 6, 2004
The Committee on Ways and Means discharged; committed to the Committee 
of the Whole House on the State of the Union and ordered to be printed 
[For text of introduced bill, see copy of bill as introduced on October 2, 2003] 
A BILL 
To ensure an abundant and affordable supply of highly nutri-
tious fruits, vegetables, and other specialty crops for 
American consumers and international markets by en-
hancing the competitiveness of United States-grown spe-
cialty crops, and for other purposes.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Specialty Crops Com-
petitiveness 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 spe-
cialty 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 for-
eign producers in both the domestic and foreign mar-
kets.
(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 accom-
plish the goals of increasing fruit, vegetable, and nut con-
sumption and improving the competitiveness of United 
States specialty crop producers. 
SEC. 3. DEFINITIONS. 
In this Act: 
(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 com-
petitiveness of specialty crops. 
(b) GRANTS BASED ON VALUE OF PRODUCTION.—Sub-
ject 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 author-
ization 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 appro-
priation 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 Agri-
culture, an application at such time, in such a manner,
and containing such information as the Secretary shall re-
quire 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 iden-
tify the lead agency charged with the responsibility of car-
rying 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 appli-
cation of a State submitted under subsection (d), the Sec-
retary of Agriculture shall ensure that the State plan would 
carry out the purpose of grant program, as specified in sub-
section (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 been a failure by the State to comply substantially 
with any provision or requirement of the State plan, the
(4) the number of backlog applications remain-
ing. 
SEC. 203. REPORT ON SANITARY AND PHYTOSANITARY EX-
PORT 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 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 ele-
vate the priority of current methyl bromide alternative re-
search 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 alter-
natives 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 PRO-
GRAM. 
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, produc-
tivity, 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 Competi-
tiveness 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 respon-
sible for studying the scope and effectiveness of research, ex-
tension, 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 com-
mittee. 
‘‘(c) ANNUAL COMMITTEE REPORT.—Not later than 
180 days after the establishment of the specialty crops com-
mittee, and annually thereafter, the specialty crops com-
mittee shall submit to the Advisory Board a report con-
taining the findings of its study under subsection (a). The 
specialty crops committee shall include in each report rec-
ommendations regarding the following: 
‘‘(1) Measures designed to improve the efficiency, 
productivity, and profitability of specialty crop pro-
duction in the United States. 
‘‘(2) Measures designed to improve competitive-
ness 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; 
‘‘(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 connec-
tion with the budget submitted pursuant to section 1105 
of title 31, United States Code, for a fiscal year, the Sec-
retary shall include a report describing how the Secretary 
addressed each recommendation of the specialty crops com-
mittee 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 Agri-
culture as reimbursement for services provided by the Sec-
retary using amounts in the Fund. 
(b) AVAILABILITY.—Amounts in the Fund shall re-
main 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 Ag-
riculture 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. 
(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 INSPEC-
TION TRAINING CENTER. 
For each of the fiscal years 2005 through 2009, there 
is authorized to be appropriated to the Secretary of Agri-
culture $1,500,000 for the maintenance of the Agricultural 
Marketing Service inspection training center in Fredericks-
burg, Virginia.