HR 2491 EH
(3) in the third sentence, by striking ‘‘United
States’’ and inserting ‘‘United States, including
Alaska and Hawaii’’.
(d) ASSESSMENT.—Section 113(g) of such Act (7
U.S.C. 4504(g)) is amended—
(1) by inserting ‘‘(1)’’ after ‘‘(g)’’; and
(2) by adding at the end the following new
paragraph:
‘‘(2) The order shall provide that each importer of
dairy products intended for consumption in the United
States shall remit to the Board, in the manner prescribed
by the order, an assessment equal to 1.2 cents per pound
of total milk solids contained in the imported dairy prod-
ucts, or 15 cents per hundredweight of milk contained in
the imported dairy products, whichever is less. If an im-
porter can establish that it is participating in active, ongo-
ing qualified State or regional dairy product promotion or
nutrition programs intended to increase the consumption
of milk and dairy products, the importer shall receive cred-
it in determining the assessment due from that importer
for contributions to such programs of up to .8 cents per
pound of total milk solids contained in the imported dairy
products, or 10 cents per hundredweight of milk contained
in the imported dairy products, whichever is less. The as-
HR 2491 EH
sessment collected under this paragraph shall be used for
the purpose specified in paragraph (1).’’.
(e) RECORDS.—Section 113(k) of such Act (7 U.S.C.
4504(k)) is amended in the first sentence by inserting
after ‘‘commercial use,’’ the following: ‘‘each importer of
dairy products,’’.
(f) TERMINATION OR SUSPENSION OF ORDER.—Sec-
tion 116(b) of such Act (7 U.S.C. 4507(b)) is amended—
(1) by inserting ‘‘and importers’’ after ‘‘produc-
ers’’ each place it appears;
(2) by striking ‘‘who, during a representative
period (as determined by the Secretary), have been
engaged in the production of milk for commercial
use’’; and
(3) by adding at the end the following new sen-
tences: ‘‘A producer shall be eligible to vote in the
referendum if the producer, during a representative
period (as determined by the Secretary), has been
engaged in the production of milk for commercial
use. An importer shall be eligible to vote in the ref-
erendum if the importer, during a representative pe-
riod (as determined by the Secretary), has been en-
gaged in the importation of dairy products into the
United States intended for consumption in the
United States.’’.
HR 2491 EH
SEC. 1223. PROMOTION OF UNITED STATES DAIRY PROD-
UCTS 
IN 
INTERNATIONAL 
MARKETS
THROUGH DAIRY PROMOTION PROGRAM.
Section 113(e) of the Dairy Production Stabilization
Act of 1983 (7 U.S.C. 4504(e)) is amended by adding at
the end the following new sentence: ‘‘For each of the fiscal
years 1996 through 2000, the Board’s budget shall pro-
vide for the expenditure of not less than 10 percent of
the anticipated revenues available to the Board to develop
international markets for, and to promote within such
markets, the consumption of dairy products produced in
the United States from milk produced in the United
States.’’.
SEC. 1224. ISSUANCE OF AMENDED ORDER UNDER DAIRY
PRODUCTION STABILIZATION ACT OF 1983.
(a) IMPLEMENTATION OF AMENDMENTS.—To imple-
ment the amendments made by sections 1222 and 1223,
the Secretary of Agriculture shall issue an amended dairy
products promotion and research order under section 112
of the Dairy Production Stabilization Act of 1983 (7
U.S.C. 4504) reflecting such amendments, and no other
changes, in the order in existence on the date of the enact-
ment of this Act.
(b) PROPOSAL
OF AMENDED ORDER.—Not later
than 60 days after the date of the enactment of this Act,
the Secretary of Agriculture shall publish a proposed dairy
HR 2491 EH
products promotion and research order reflecting the
amendments made by sections 1222 and 1223. The Sec-
retary shall provide notice and an opportunity for public
comment on the proposed order.
(c) ISSUANCE OF AMENDED ORDER.—After notice
and opportunity for public comment are provided in ac-
cordance with subsection (b), the Secretary of Agriculture
shall issue a final dairy products promotion and research
order, taking into consideration the comments received
and including in the order such provisions as are necessary
to ensure that the order is in conformity with the amend-
ments made by sections 1222 and 1223.
(d) EFFECTIVE DATE.—The final dairy products pro-
motion and research order shall be issued and become ef-
fective not later than 120 days after publication of the
proposed order.
(e) REFERENDUM ON AMENDMENTS.—Section 115
of Dairy Production Stabilization Act of 1983 (7 U.S.C.
4506) is amended—
(1) by redesignating subsection (b) as sub-
section (c); and
(2) by inserting after subsection (a) the follow-
ing new subsection:
‘‘(b) REFERENDUM.—Not later than 36 months after
the issuance of the order reflecting the amendments made
HR 2491 EH
by sections 1222 and 1223 of the Agricultural Reconcili-
ation Act of 1995, the Secretary shall conduct a referen-
dum under this section for the sole purpose of determining
whether the requirements of such amendments shall be
continued. The Secretary shall conduct the referendum
among persons who have been producers or importers dur-
ing a representative period as determined by the Sec-
retary. The requirements of such amendments shall be
continued only if the Secretary determines that such re-
quirements have been approved by not less than a majority
of the persons voting in the referendum. If continuation
of the amendments is not approved, the Secretary shall
issue a new order, within six months after the announce-
ment of the results of the referendum, that is identical
to the order in effect on the date of the enactment of the
Agricultural Reconciliation Act of 1995. The new order
shall become effective upon issuance and shall not be sub-
ject to referendum for approval.’’.
CHAPTER 4—VERIFICATION OF MILK
RECEIPTS
SEC. 1231. PROGRAM TO VERIFY RECEIPTS OF MILK.
(a) ESTABLISHMENT OF VERIFICATION PROGRAM.—
Section 204 of the Agricultural Act of 1949 (7 U.S.C.
1446e), as amended by section 1201, is further amended
by adding at the end the following new subsection:
HR 2491 EH
‘‘(k) VERIFICATION OF RECEIPTS OF MILK.—
‘‘(1) VERIFICATION PROGRAM REQUIRED.—The
Secretary shall establish a program through which
the verification of receipts of all cow’s milk marketed
in the 48 contiguous States and the auditing of mar-
keting agreements with respect to receipts of such
milk may be accomplished. The Secretary shall pre-
scribe regulations to establish the program required
by this subsection.
‘‘(2) ADMINISTRATIVE
SERVICES.—The pro-
gram shall provide a means by which (A) processors,
associations of producers, and other persons engaged
in the handling of milk and milk products file re-
ports with the Secretary regarding receipts of milk,
prices paid for milk, and the purposes for which
milk was used by handlers, (B) authorized deduc-
tions from payments to producers, including assess-
ments for research and promotion programs, are col-
lected, (C) assurance of proper payment by handlers
for milk purchased is achieved, and (D) the reports,
records, and facilities of handlers are reviewed and
inspected to assure their accuracy. The regulations
shall provide for the publication of statistics regard-
ing receipts, prices, and uses of milk. Statistics pub-
lished by the Secretary shall include information re-
HR 2491 EH
garding payments received by producers for milk on
a component basis, including payments for milkfat,
protein and other solids. The Secretary shall collect
an assessment from handlers required to file reports
under this paragraph to cover any expenses associ-
ated with the collection and publication of such sta-
tistics. Assessments shall be based on the relative
volume of receipts of milk by each handler and shall
not exceed the total cost of such expenses.
‘‘(3) MARKETING
SERVICES.—The program
shall further provide a means by which the weighing,
sampling, and testing of milk purchased from pro-
ducers is accomplished and verified. This paragraph
shall not apply to producers for whom such market-
ing services are rendered by a cooperative marketing
association qualified under the provisions of the Act
of February 18, 1922 (7 U.S.C. 291–292), com-
monly known as the ‘Co-operative Marketing Asso-
ciations Act’. An assessment may be levied on pro-
ducers for whom such services are performed to
cover the expenses of the Secretary or the coopera-
tive marketing association providing the services. As-
sessments shall be based on the relative marketings
of milk by each producer and shall not exceed the
total cost of providing such services.
HR 2491 EH
‘‘(4) MARKETING AGREEMENTS.—Producers or
associations of producers, including cooperative mar-
keting associations qualified under the provisions of
the Act of February 18, 1922 (7 U.S.C. 291–292),
commonly known as the ‘Co-operative Marketing As-
sociations Act’, may negotiate and enter into mar-
keting agreements or other private contracts with
handlers for the marketing and receipt of milk.
Upon the request of either or both of the parties, the
Secretary may perform an audit of the agreement or
contract to assure compliance with its terms, except
that the Secretary shall be reimbursed for any costs
associated with the audit in the manner provided in
the agreement or contract. If there is no provision
for the reimbursement of the Secretary in the agree-
ment or contract, the party or parties requesting the
audit shall provide such reimbursement.
‘‘(5) PROHIBITION
ON
MARKETING
LIMITA-
TIONS.—No marketing agreement or Government
order or regulation applicable to milk and its prod-
ucts in any marketing area or jurisdiction shall pro-
hibit or in any manner limit the marketing in that
area of any milk or product of milk produced in any
production area in the United States.
HR 2491 EH
‘‘(6) EFFECT
ON
EXISTING
MARKETING
OR-
DERS.—Effective July 1, 1996, the program estab-
lished under this subsection shall supersede any
Federal marketing order issued under section 8c of
the Agricultural Adjustment Act (7 U.S.C. 608c),
reenacted with amendments by the Agricultural
Marketing Agreement Act of 1937, with respect to
milk or its products.’’.
(b) TIME FOR ISSUANCE.—Not later than July 1,
1996, the Secretary of Agriculture shall issue final regula-
tions under subsection (k) of section 204 of the Agricul-
tural Act of 1949, as added by this section, to establish
the verification program required by such subsection. The
regulations shall take effect on that date.
(c) PROCESS.—In preparation for the issuance of the
regulations under subsection (k) of section 204 of the Ag-
ricultural Act of 1949, as added by this section, the Sec-
retary shall comply with the following:
(1) The Secretary shall issue proposed regula-
tions not later than April 1, 1996.
(2) The Secretary shall provide for a comment
period on the regulations, as proposed under para-
graph (1). However, the comment period shall not
exceed 60 days nor extend past May 31, 1996.
HR 2491 EH
SEC. 1232. VERIFICATION PROGRAM TO SUPERSEDE MUL-
TIPLE EXISTING FEDERAL ORDERS.
(a) TERMINATION OF MILK MARKETING ORDERS.—
Section 8c of the Agricultural Adjustment Act (7 U.S.C.
608c), reenacted with amendments by the Agricultural
Marketing Agreement Act of 1937, is amended by striking
paragraphs (5) and (18) relating to milk and its products.
(b) PROHIBITION
ON SUBSEQUENT ORDERS RE-
GARDING MILK.—Paragraph (2) of such section is amend-
ed—
(1) by striking ‘‘Milk, fruits’’ and inserting
‘‘Fruits’’; and
(2) by inserting ‘‘milk,’’ after ‘‘honey,’’ in sub-
paragraph (B).
(c) CONFORMING AMENDMENTS.—(1) Section 2(3) of
such Act (7 U.S.C. 602(3) is amended by striking ‘‘, other
than milk and its products,’’.
(2) Section 8c of such Act (7 U.S.C. 608c) is amend-
ed—
(A) in paragraph (6), by striking ‘‘, other than
milk and its products,’’;
(B) in paragraph (7)(B), by striking ‘‘(except
for milk and cream to be sold for consumption in
fluid form)’’;
HR 2491 EH
(C) in paragraph (11)(B), by striking ‘‘Except
in the case of milk and its products, orders’’ and in-
serting ‘‘Orders’’;
(D) in paragraph (13)(A), by striking ‘‘, except
to a retailer in his capacity as a retailer of milk and
its products’’; and
(E) in paragraph (17), by striking the second
proviso, which relates to milk orders.
(3) Section 8d(2) of such Act (7 U.S.C. 608d(2)) is
amended by striking the second sentence, which relates to
information from milk handlers.
(4) Section 10(b)(2) of such Act (7 U.S.C. 610(b)(2))
is amended—
(A) by striking clause (i);
(B) by redesignating clauses (ii) and (iii) as
clauses (i) and (ii), respectively; and
(C) in clause (i) (as so redesignated), by strik-
ing ‘‘other commodity’’ in the first sentence and in-
serting ‘‘commodity’’.
(5) Section 11 of such Act (7 U.S.C. 611) is amended
by striking ‘‘and milk, and its products,’’.
(6) Section 715 of the Agriculture, Rural Develop-
ment, Food and Drug Administration, and Related Agen-
cies Appropriations Act, 1994 (Public Law 103–111; 107
Stat. 1079; 7 U.S.C. 608d note), is amended by striking
HR 2491 EH
the third proviso, which relates to information from milk
handlers.
(d) EFFECTIVE DATE.—The amendments made by
this section shall take effect on July 1, 1996.
CHAPTER 5—MISCELLANEOUS
PROVISIONS RELATED TO DAIRY
SEC. 1241. EXTENSION OF TRANSFER AUTHORITY REGARD-
ING MILITARY AND VETERANS HOSPITALS.
Subsections (a) and (b) of section 202 of the Agricul-
tural Act of 1949 (7 U.S.C. 1446a) are amended by strik-
ing ‘‘1995’’ both places it appears and inserting ‘‘2002’’.
SEC. 1242. EXTENSION OF DAIRY INDEMNITY PROGRAM.
Section 3 of Public Law 90–484 (7 U.S.C. 450l) is
amended by striking ‘‘1995’’ and inserting ‘‘2002’’.
SEC. 1243. EXTENSION OF REPORT REGARDING EXPORT
SALES OF DAIRY PRODUCTS.
Section 1163(c) of the Food Security Act of 1985 is
amended by striking ‘‘1995’’ and inserting ‘‘2002’’.
SEC. 1244. STATUS OF PRODUCER-HANDLERS.
The legal status of producer-handlers of milk under
the Agricultural Adjustment Act (7 U.S.C. 601 et seq.),
reenacted with amendments by the Agricultural Marketing
Agreement Act of 1937, shall be the same after the
amendments made by this title take effect as it was before
the effective date of the amendments.
HR 2491 EH
Subtitle C—Other Commodities
SEC. 1301. EXTENSION AND MODIFICATION OF PRICE SUP-
PORT AND QUOTA PROGRAMS FOR PEANUTS.
(a) EXTENSION OF PRICE SUPPORT PROGRAM.—Sec-
tion 108B of the Agricultural Act of 1949 (7 U.S.C.
1445c–3) is amended—
(1) in the section heading, by striking ‘‘1991
THROUGH 1997 CROPS OF’’;
(2) in subsections (a)(1), (b)(1), and (h), by
striking ‘‘1997’’ each place it appears and inserting
‘‘2002’’;
(3) in subsection (g)(1)—
(A) by striking ‘‘1997 crops’’ the first
place it appears and inserting ‘‘2002 crops’’;
and
(B) by striking ‘‘1997 crop’’ both places it
appears and inserting ‘‘1997 through 2002
crops’’; and
(4) in subsection (g)(2)(A)—
(A) by striking ‘‘1997 crop’’ in clause
(i)(IV) and inserting ‘‘1997 through 2002
crops’’; and
(B) by striking ‘‘1997’’ in clause (ii)(II)
and inserting ‘‘2002’’.
(b) CHANGES TO PRICE SUPPORT PROGRAM.—
HR 2491 EH
(1) QUOTA SUPPORT RATE.—
(A) SUPPORT
RATE
FOR
1996
THROUGH
2002 CROPS.—Subsection (a)(2) of section 108B
of the Agricultural Act of 1949 (7 U.S.C.
1445c–3) is amended to read as follows:
‘‘(2) SUPPORT
RATE.—The national average
quota support rate for quota peanuts shall be equal
to $610 per ton for each of the 1996 through 2002
crops of quota peanuts.’’.
(B) EFFECT OF AMENDMENT ON CURRENT
CROP.—The national average quota support
rate in effect under section 108B(a)(2) of the
Agricultural Act of 1949 (7 U.S.C. 1445c–3)
on the day before the date of the enactment of
this Act shall continue to apply with respect to
the 1995 crop of quota peanuts.
(2) OFFERS FROM HANDLERS.—Subsection (a)
of such section is amended—
(A) by redesignating paragraphs (4) and
(5) as paragraphs (5) and (6), respectively; and
(B) by inserting after paragraph (3) the
following new paragraph:
‘‘(4) OFFERS FROM HANDLERS.—The Secretary
shall reduce the support rate by 15 percent for any
producer on a farm who had available to the pro-
HR 2491 EH
ducer an offer from a handler to purchase quota
peanuts from the farm at a price equal to or greater
than the applicable quota support rate.’’.
(3) COVERING
LOSSES.—Subsection (d)(2) of
such section is amended to read as follows:
‘‘(2) QUOTA
LOAN
POOLS.—Losses in quota
area pools shall be covered using the following
sources in the following order of priority:
‘‘(A) TRANSFERS FROM ADDITIONAL LOAN
POOLS.—The proceeds due any producer from
any pool shall be reduced by the amount of any
loss that is incurred with respect to peanuts
transferred from an additional loan pool to a
quota loan pool by such producer under section
358–1(b)(8) of the Agricultural Adjustment Act
of 1938.
‘‘(B) OTHER PRODUCERS IN SAME POOL.—
Further losses in an area quota pool shall be
offset by reducing the gain of any producer in
such pool by the amount of pool gains attrib-
uted to the same producer from the sale of ad-
ditional peanuts for domestic and export edible
use.
‘‘(C) USE OF MARKETING ASSESSMENTS.—
The Secretary shall use funds collected under
HR 2491 EH
subsection (g) (except funds attributable to
handlers) to offset further losses in area quota
pools. The Secretary shall transfer to the
Treasury those funds collected under subsection
(g) and available for use under this paragraph
that the Secretary determines are not required
to cover losses in area quota pools.
‘‘(D) CROSS COMPLIANCE.—Further losses
in area quota pools, other than losses incurred
as a result of transfers from additional loan
pools to quota loan pools under section 358–
1(b)(8) of the Agricultural Adjustment Act of
1938, shall be offset by any gains or profits
from quota pools in other production areas
(other than separate type pools established
under subsection (c)(2)(A) for Valencia peanuts
produced in New Mexico) in such manner as
the Secretary shall by regulation prescribe.
‘‘(E) INCREASED ASSESSMENTS.—If use of
the authorities provided in the preceding sub-
paragraphs is not sufficient to cover losses in
an area quota pool, the Secretary shall increase
the marketing assessment established under
subsection (g) by such an amount as the Sec-
retary considers necessary to cover the losses.
HR 2491 EH
The increased assessment shall apply only to
quota peanuts marketed in the production area
covered by that pool. Amounts collected under
subsection (g) as a result of the increased as-
sessment shall be retained by the Secretary to
cover losses in that pool.’’.
(c) EXTENSION OF NATIONAL POUNDAGE QUOTA
PROGRAM.—Part VI of subtitle B of title III of the Agri-
cultural Adjustment Act of 1938 is amended—
(1) in section 358–1 (7 U.S.C. 1358–1)—
(A) in the section heading, by striking
‘‘1991 THROUGH 1997 CROPS OF’’;
(B) in subsection (a)(3), by striking
‘‘1990’’ and inserting ‘‘1990, for the 1991
through 1995 marketing years, and 1995, for
the 1996 through 2002 marketing years’’;
(C) in subsection (b)(1)(A)—
(i) by striking ‘‘1997’’ and inserting
‘‘2002’’; and
(ii) in clause (i), by inserting before
the semicolon the following: ‘‘, in the case
of the 1991 through 1995 marketing
years, and the 1995 marketing year, in the
case of the 1996 through 2002 marketing
years’’; and
HR 2491 EH
(D) in subsections (b)(1)(B), (b)(2)(A),
(b)(2)(C), (b)(3)(A), and (f), by striking
‘‘1997’’ each place it appears and inserting
‘‘2002’’;
(2) in section 358b (7 U.S.C. 1358b)—
(A) in the section heading, by striking
‘‘1991 THROUGH 1995 CROPS OF’’; and
(B) in subsection (c), by striking ‘‘1995’’
and inserting ‘‘2002’’;
(3) in section 358c(d) (7 U.S.C. 1358c(d)), by
striking ‘‘1995’’ and inserting ‘‘2002’’; and
(4) in section 358e (7 U.S.C. 1359a)—
(A) in the section heading, by striking
‘‘1991 THROUGH 1997’’ and inserting ‘‘CER-
TAIN’’; and
(B) in subsection (i), by striking ‘‘1997’’
and inserting ‘‘2002’’.
(d) PRIORITIZED
QUOTA
REDUCTIONS.—Section
358–1(b)(2)(C) of the Agricultural Adjustment Act of
1938 (7 U.S.C. 1358–1(b)(2)(C)) is amended—
(1) by striking ‘‘all the’’; and
(2) by adding at the end the following new sen-
tence: ‘‘Rather than allocating the decrease among
all the farms in a State, the Secretary shall allocate
HR 2491 EH
the decrease among farms in the following order of
priority:
‘‘(i) Farms owned or controlled by
municipalities, airport authorities, schools,
colleges, refuges, and other public entities
(not including universities for research
purposes).
‘‘(ii) Farms for which the quota hold-
er is not a producer and resides in another
State.
‘‘(iii) Farms for which the quota hold-
er, although a resident of the State, is not
a producer.
‘‘(iv) Other farms described in the
first sentence of this subparagraph.’’.
(e) ELIMINATION OF QUOTA FLOOR.—Section 358–
1(a)(1) of the Agricultural Adjustment Act of 1938 (7
U.S.C. 1358–1(a)(1)) is amended by striking the second
sentence.
(f) SPRING
AND
FALL
TRANSFERS
WITHIN
A
STATE.—Section 358b(a)(1) of the Agricultural Adjust-
ment Act of 1938 (7 U.S.C. 1358b(a)(1)) is amended—
(1) by striking ‘‘any such lease’’ in the matter
preceding the subparagraphs and inserting ‘‘any
such sale or lease’’; and
HR 2491 EH
(2) by striking ‘‘in the fall or after the normal
planting season—’’ and subparagraphs (A) and (B)
and inserting the following: ‘‘in the spring (or before
the normal planting season) or in the fall (or after
the normal planting season) with the owner or oper-
ator of a farm located within any county in the same
State. In the case of a fall transfer or a transfer
after the normal planting season, the transfer may
be made only if not less than 90 percent of the basic
quota (the farm quota exclusive of temporary quota
transfers), plus any poundage quota transferred to
the farm under this subsection, has been planted or
considered planted on the farm from which the
quota is to be leased.’’.
(g) 
TRANSFERS
IN
COUNTIES
WITH
SMALL
QUOTAS.—Section 358b(a) of the Agricultural Adjust-
ment Act of 1938 (7 U.S.C. 1358b(a)) is amended by add-
ing at the end the following new paragraph:
‘‘(4) TRANSFERS
IN
COUNTIES
WITH
SMALL
QUOTAS.—Notwithstanding paragraphs (1) and (2),
in the case of any county for which the poundage
quota allocated to the county was less than 10,000
tons for the preceding year’s crop, all or any part of
a farm poundage quota for a farm in that county
HR 2491 EH
may be transferred by sale or lease or otherwise to
a farm in any other county in the same State.’’.
(h) UNDERMARKETINGS.—
(1) ELIMINATION.—Subsection (b) of section
358–1 of the Agricultural Adjustment Act of 1938
(7 U.S.C. 1358–1) is amended by striking para-
graphs (8) and (9).
(2) CONFORMING
AMENDMENTS.—(A) Such
subsection is further amended—
(i) in paragraph (1)(B), by striking ‘‘in-
cluding—’’ and clauses (i) and (ii) and insert-
ing ‘‘including any increases resulting from the
allocation of quotas voluntarily released for 1
year under paragraph (7).’’; and
(ii) in paragraph (3)(B), by striking ‘‘in-
clude—’’ and clauses (i) and (ii) and inserting
‘‘include any increase resulting from the alloca-
tion of quotas voluntarily released for 1 year
under paragraph (7).’’.
(B) Section 358b(a) of the Agricultural Adjust-
ment Act of 1938 (7 U.S.C. 1358b(a)) is amended—
(i) in paragraph (1) (as amended by sub-
section (f)), by striking ‘‘(including any applica-
ble under marketings)’’ both places it appears;
HR 2491 EH
(ii) in paragraph (2), by striking ‘‘(includ-
ing any applicable under marketings)’’; and
(iii) in paragraph (3), by striking ‘‘(includ-
ing any applicable undermarketings)’’.
(i) LIMITATION
ON
PAYMENTS
FOR
DISASTER
TRANSFERS.—Section 358–1(b) of the Agricultural Ad-
justment Act of 1938 (7 U.S.C. 1358–1(b)), as amended
by subsection (h), is further amended by adding at the
end the following new paragraph:
‘‘(8) TRANSFER
OF
ADDITIONAL
PEANUTS.—
Additional peanuts on a farm from which the quota
poundage was not harvested and marketed because
of drought, flood, or any other natural disaster, or
any other condition beyond the control of the pro-
ducer, may be transferred to the quota loan pool for
pricing purposes on such basis as the Secretary shall
by regulation provide, except that the poundage of
such peanuts so transferred shall not exceed the dif-
ference in the total peanuts meeting quality require-
ments for domestic edible use as determined by the
Secretary marketed from the farm and the total
farm poundage quota, excluding quota pounds trans-
ferred to the farm in the fall. Peanuts transferred
under this paragraph shall be supported at a total
of not more than 70 percent of the quota support
HR 2491 EH
rate for the marketing years in which such transfers
occur and such transfers for a farm shall not exceed
25 percent of the total farm quota pounds, excluding
pounds transferred in the fall.’’.
(j) TEMPORARY QUOTA ALLOCATION.—
(1) ANNUAL
ALLOCATION.—Subsection (b)(2)
of section 358–1 of the Agricultural Adjustment Act
of 1938 (7 U.S.C. 1358–1) is amended—
(A) in subparagraph (A), by striking ‘‘sub-
paragraph (B) and subject to’’; and
(B) by striking subparagraph (B) and in-
serting the following new subparagraph:
‘‘(B) TEMPORARY QUOTA ALLOCATION.—
‘‘(i) ALLOCATION RELATED TO SEED
PEANUTS.—Temporary allocation of quota
pounds for the marketing year only in
which the crop is planted shall be made to
producers for each of the 1996 through
2002 marketing years as provided in this
subparagraph. The temporary quota alloca-
tion shall be equal to the pounds of seed
peanuts planted on the farm, as may be
adjusted under regulations prescribed by
the Secretary. The temporary allocation of
quota pounds under this paragraph shall
HR 2491 EH
be in addition to the farm poundage quota
otherwise established under this subsection
and shall be credited for the applicable
marketing year only, in total to the pro-
ducer of the peanuts on the farm in a
manner prescribed by the Secretary.
‘‘(ii) EFFECT
OF
OTHER
REQUIRE-
MENTS.—Nothing in this section shall alter
or change in any way the requirements re-
garding the use of quota and additional
peanuts established by section 359a(b) of
the Agricultural Adjustment Act of 1938
(7 U.S.C. 1359a(b)), as added by section
804 of the Food, Agriculture, Conserva-
tion, and Trade Act of 1990.’’.
(2) 
CONFORMING
AMENDMENT.—Subsection
(a)(1) of such section is amended by striking ‘‘do-
mestic edible, seed,’’ and inserting ‘‘domestic edible
use’’.
(k) SUSPENSION OF MARKETING QUOTAS AND ACRE-
AGE ALLOTMENTS.—The following provisions of the Agri-
cultural Adjustment Act of 1938 shall not apply to the
1996 through 2002 crops of peanuts:
(1) Subsections (a) through (j) of section 358
(7 U.S.C. 1358).
1246
HR 2491 EH
(i) and by striking clauses (ii) and (iii) and in-
serting the following new clause:
‘‘(ii) the requirements of subsection
(b)(2) are met with respect to such foreign
corporation.’’
(B) Subparagraph (B) of section 902(c)(4)
is amended by striking ‘‘3rd foreign corpora-
tion’’ and inserting ‘‘sixth tier foreign corpora-
tion’’.
(C) The heading for paragraph (3) of sec-
tion 902(c) is amended by striking ‘‘WHERE DO-
MESTIC
CORPORATION
ACQUIRES
PERCENT
OF
FOREIGN
CORPORATION’’ and inserting
‘‘WHERE FOREIGN CORPORATION FIRST QUALI-
FIES’’.
(D) Paragraph (3) of section 902(c) is
amended by striking ‘‘ownership’’ each place it
appears.
(b) SECTION 960 CREDIT.—Paragraph (1) of section
960(a) (relating to special rules for foreign tax credits)
is amended to read as follows:
‘‘(1) DEEMED PAID CREDIT.—For purposes of
subpart A of this part, if there is included under
section 951(a) in the gross income of a domestic cor-
poration any amount attributable to earnings and