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•HR 2419 EH1S 
‘‘(2) DESIGNATION
OF
COUNTRY
OF
ORIGIN 
FOR BEEF, LAMB, PORK, AND GOAT.— 
‘‘(A) UNITED STATES COUNTRY OF ORI-
GIN.—A retailer of a covered commodity that is 
beef, lamb, pork, or goat may designate the cov-
ered commodity as exclusively having a United 
States country of origin only if the covered 
commodity is derived from an animal that 
was— 
‘‘(i) exclusively born, raised, and 
slaughtered in the United States; 
‘‘(ii) born and raised in Alaska or Ha-
waii and transported for a period of not 
more than 60 days through Canada to the 
United States and slaughtered in the 
United States; or 
‘‘(iii) present in the United States on 
or before January 1, 2008. 
‘‘(B) MULTIPLE COUNTRIES OF ORIGIN.— 
A retailer of a covered commodity that is beef, 
lamb, pork, or goat that is derived from an ani-
mal that is— 
‘‘(i) not exclusively born, raised, and 
slaughtered in the United States,
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•HR 2419 EH1S 
‘‘(ii) born, raised, or slaughtered in 
the United States, and 
‘‘(iii) not imported into the United 
States for immediate slaughter, 
may designate the country of origin of such cov-
ered commodity as all of the countries in which 
the animal may have been born, raised, or 
slaughtered. 
‘‘(C) IMPORTED FOR IMMEDIATE SLAUGH-
TER.—A retailer of a covered commodity that is 
beef, lamb, pork, or goat that is derived from 
an animal that is imported into the United 
States for immediate slaughter must designate 
the origin of such covered commodity as— 
‘‘(i) the country from which the ani-
mal was imported; and 
‘‘(ii) the United States. 
‘‘(D) FOREIGN COUNTRY OF ORIGIN.—A 
retailer of a covered commodity that is beef, 
lamb, pork, or goat that is derived from an ani-
mal that is not born, raised, or slaughtered in 
the United States must designate a country 
other than the United States as the country of 
origin of such commodity.
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•HR 2419 EH1S 
‘‘(E) GROUND BEEF, PORK, AND LAMB.— 
The notice of country of origin for ground beef, 
ground pork, or ground lamb shall include— 
‘‘(i) a list of all countries of origin of 
such ground beef, ground pork, or ground 
lamb; or 
‘‘(ii) a list of all reasonably possible 
countries of origin of such ground beef, 
ground pork, or ground lamb. 
‘‘(3) DESIGNATION
OF
COUNTRY
OF
ORIGIN 
FOR FISH.— 
‘‘(A) IN GENERAL.—A retailer of a covered 
commodity that is farm-raised fish or wild fish 
may designate the covered commodity as having 
a United States country of origin only if the 
covered commodity— 
‘‘(i) in the case of farm-raised fish, is 
hatched, raised, harvested, and processed 
in the United States; and 
‘‘(ii) in the case of wild fish, is— 
‘‘(I) harvested in the United 
States, a territory of the United 
States, or a State, or by a vessel that 
is documented under chapter 121 of
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•HR 2419 EH1S 
title 46, United States Code, or reg-
istered in the United States; and 
‘‘(II) processed in the United 
States, a territory of the United 
States, or a State, including the wa-
ters thereof. 
‘‘(B) DESIGNATION
OF
WILD
FISH
AND 
FARM-RAISED FISH.—The notice of country of 
origin for wild fish and farm-raised fish shall 
distinguish between wild fish and farm-raised 
fish. 
‘‘(4) DESIGNATION
OF
COUNTRY
OF
ORIGIN 
FOR PERISHABLE AGRICULTURAL COMMODITIES AND 
PEANUTS.— 
‘‘(A) IN GENERAL.—A retailer of a covered 
commodity that is a perishable agricultural 
commodity or peanut may designate the covered 
commodity as having a United States country 
of origin only if the covered commodity is exclu-
sively produced in the United States. 
‘‘(B) STATE, REGION, LOCALITY OF THE 
UNITED
STATES.—With respect to a covered 
commodity that is a perishable agricultural 
commodity produced exclusively in the United 
States, designation by a retailer of the State,
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•HR 2419 EH1S 
region, or locality of the United States where 
such commodity was produced shall be suffi-
cient to identify the United States as the coun-
try of origin.’’; and 
(B) by striking subsection (d) and insert-
ing the following: 
‘‘(d) AUDIT VERIFICATION SYSTEM.— 
‘‘(1) IN GENERAL.—The Secretary may conduct 
an audit of any person that prepares, stores, han-
dles, or distributes a covered commodity for retail 
sale to verify compliance with this subtitle (including 
the regulations promulgated under section 284(b)). 
‘‘(2) RECORD REQUIREMENTS.— 
‘‘(A) IN GENERAL.—A person subject to 
an audit under paragraph (1) shall provide the 
Secretary with verification of the country of ori-
gin of covered commodities. Records maintained 
in the course of the normal conduct of the busi-
ness of such person, including animal health pa-
pers, import or customs documents, or producer 
affidavits, may serve as such verification. 
‘‘(B) PROHIBITION ON REQUIREMENT OF 
ADDITIONAL RECORDS.—The Secretary may not 
require a person that prepares, stores, handles, 
or distributes a covered commodity to maintain
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•HR 2419 EH1S 
a record of the country of origin of a covered 
commodity other than those maintained in the 
course of the normal conduct of the business of 
such person.’’; 
(3) in section 283— 
(A) by striking subsections (a) and (c); 
(B) by redesignating subsection (b) sub-
section (a); 
(C) in subsection (a) (as so redesignated), 
by striking ‘‘retailer’’ and inserting ‘‘retailer or 
person engaged in the business of supplying a 
covered commodity to a retailer’’; and 
(D) by adding at the end the following new 
subsection: 
‘‘(b) FINES.—If, on completion of the 30-day period 
described in subsection (a)(2), the Secretary determines 
that the retailer or person engaged in the business of sup-
plying a covered commodity to a retailer has— 
‘‘(1) not made a good faith effort to comply 
with section 282, and 
‘‘(2) continues to willfully violate section 282 
with respect to the violation about which the retailer 
or person received notification under subsection 
(a)(1),
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•HR 2419 EH1S 
after providing notice and an opportunity for a hearing 
before the Secretary with respect to the violation, the Sec-
retary may fine the retailer or person in an amount of 
not more than $1,000 for each violation.’’. 
SEC. 11105. SENSE OF CONGRESS REGARDING THE VOL-
UNTARY 
CONTROL 
PROGRAM 
FOR 
LOW 
PATHOGENIC AVIAN INFLUENZA. 
It is the sense of Congress that— 
(1) the voluntary control program for low path-
ogenic avian influenza is a critical component of the 
animal health protection system of the United 
States, as well as a safeguard against highly patho-
genic avian influenza; and 
(2) the Secretary of Agriculture has appro-
priately provided for the payment of compensation to 
owners of poultry and cooperating State agencies of 
100 percent of eligible costs, and the Secretary 
should continue to provide such payments at 100 
percent of such costs. 
SEC. 11106. SENSE OF CONGRESS REGARDING THE CATTLE 
FEVER TICK ERADICATION PROGRAM. 
It is the sense of Congress that— 
(1) the cattle fever tick and the southern cattle 
tick are vectors of the causal agent of babesiosis, a 
severe and often fatal disease of cattle; and
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•HR 2419 EH1S 
(2) implementing a national strategic plan for 
the cattle fever tick eradication program is a high 
priority that the secretary should carry out in order 
to— 
(A) prevent the entry of cattle fever ticks 
into the United States; 
(B) enhance and maintain an effective sur-
veillance program to rapidly detect any cattle 
fever tick incursions; and 
(C) research, identify, and procure the 
tools and knowledge necessary to prevent and 
eradicate cattle fever ticks in the United States. 
Subtitle C—Socially Disadvantaged 
Producers 
and 
Limited 
Re-
source Producers 
SEC. 11201. OUTREACH AND TECHNICAL ASSISTANCE FOR 
SOCIALLY DISADVANTAGED FARMERS AND 
RANCHERS AND LIMITED RESOURCE FARM-
ERS AND RANCHERS. 
Section 2501 of the Food, Agriculture, Conservation, 
and Trade Act of 1990 (7 U.S.C. 2279) is amended— 
(1) in subsection (a)— 
(A) by striking paragraph (2) and insert-
ing the following new paragraph:
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•HR 2419 EH1S 
‘‘(2) REQUIREMENTS.—The outreach and tech-
nical assistance program under paragraph (1) shall 
be used— 
‘‘(A) to enhance coordination of the out-
reach, technical assistance, and education ef-
forts authorized under agriculture programs; 
and 
‘‘(B) to assist the Secretary in— 
‘‘(i) reaching socially disadvantaged or 
limited resource farmers and ranchers and 
prospective socially disadvantaged or lim-
ited resource farmers and ranchers in an 
appropriate manner; and 
‘‘(ii) improving the participation of 
those farmers and ranchers in Department 
programs, as determined under section 
2501A.’’; 
(B) in paragraph (3)— 
(i) in subparagraph (A), by striking 
‘‘entity to provide information’’ and insert-
ing ‘‘entity that has demonstrated an abil-
ity to carry out the requirements described 
in paragraph (2) to provide outreach’’; and 
(ii) by adding at the end the following 
new subparagraphs:
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•HR 2419 EH1S 
‘‘(D) ADDITIONAL CONTRACTING AUTHOR-
ITY.—Any agency of the Department of Agri-
culture may make grants and enter into con-
tracts and cooperative agreements with a com-
munity-based organization that meets the defi-
nition of an eligible entity under subsection (e) 
in order to utilize the community-based organi-
zation to provide outreach and technical assist-
ance. 
‘‘(E) REPORT.—The Secretary shall sub-
mit to the Committee on Agriculture of the 
House of Representatives and the Committee 
on Agriculture, Nutrition, and Forestry of the 
Senate, and make publicly available, an annual 
report that includes a list of the following: 
‘‘(i) The recipients of funds made 
available under the program. 
‘‘(ii) The activities undertaken and 
services provided. 
‘‘(iii) The number of producers served 
and outcomes of such service. 
‘‘(iv) The problems and barriers iden-
tified by entities in trying to increase par-
ticipation by socially disadvantaged farm-
ers and ranchers.’’; and
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•HR 2419 EH1S 
(C) in paragraph (4)— 
(i) by striking subparagraph (A), and 
inserting the following new subparagraph: 
‘‘(A) AVAILABILITY
OF
FUNDS.—Of the 
funds of the Commodity Credit Corporation, the 
Secretary shall make available $15,000,000 for 
each of the fiscal years 2008 through 2012 to 
carry out this subsection.’’; 
(ii) in subparagraph (B), by striking 
‘‘authorized to be appropriated under sub-
paragraph (A)’’ and inserting ‘‘made avail-
able under subparagraph (A)’’; and 
(iii) by adding at the end the fol-
lowing new subparagraph: 
‘‘(C) LIMITATION ON USE OF FUNDS FOR 
ADMINISTRATIVE EXPENSES.—Not more than 5 
percent of the amounts made available under 
subparagraph (A) for a fiscal year may be used 
for expenses related to administering the pro-
gram under this section.’’; and 
(2) in subsection (e)(5)(A)(ii)— 
(A) by inserting ‘‘and on behalf of’’ before 
‘‘socially’’; and 
(B) by striking ‘‘2-year’’ and inserting ‘‘3- 
year’’.
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•HR 2419 EH1S 
SEC. 11202. IMPROVED PROGRAM DELIVERY BY DEPART-
MENT OF AGRICULTURE ON INDIAN RES-
ERVATIONS. 
Section 2501(g)(1) of the Food, Agriculture, Con-
servation, and Trade Act of 1990 (7 U.S.C. 2279(g)(1)) 
is amended— 
(1) in the first sentence, by striking ‘‘where 
there is a demonstrated demand for service’’ after 
‘‘offices’’; and 
(2) by striking the second sentence. 
SEC. 11203. TRANSPARENCY AND ACCOUNTABILITY FOR SO-
CIALLY 
DISADVANTAGED 
FARMERS 
AND 
RANCHERS. 
Section 2501A of the Food, Agriculture, Conserva-
tion, and Trade Act of 1990 (7 U.S.C. 2279–1) is amend-
ed by striking subsection (c) and inserting the following 
new subsections: 
‘‘(c) COMPILATION
OF PROGRAM PARTICIPATION 
DATA.— 
‘‘(1) ANNUAL REQUIREMENT.—For each county 
and State in the United States, the Secretary of Ag-
riculture (referred to in this section as the ‘Sec-
retary’) shall annually compile program application 
and participation rate data regarding socially dis-
advantaged farmers and ranchers by computing for
819 
•HR 2419 EH1S 
each program of the Department of Agriculture that 
serves agricultural producers and landowners— 
‘‘(A) raw numbers of applicants and par-
ticipants by race, ethnicity, and gender, subject 
to appropriate privacy protections, as deter-
mined by the Secretary; and 
‘‘(B) the application and participation rate, 
by race, ethnicity, and gender, as a percentage 
of the total participation rate of all agricultural 
producers and landowners. 
‘‘(2) AUTHORITY
TO
COLLECT
DATA.—The 
heads of the agencies of the Department of Agri-
culture shall collect and transmit to the Secretary 
any data, including data on race, gender, and eth-
nicity, that the Secretary determines to be necessary 
to carry out paragraph (1). 
‘‘(3) REPORT.—Using the technologies and sys-
tems of the National Agricultural Statistics Service, 
the Secretary shall compile and present the data 
compiled under paragraph (1) for each program de-
scribed in that paragraph in a manner that includes 
the raw numbers and participation rates for— 
‘‘(A) the entire United States; 
‘‘(B) each State; and 
‘‘(C) each county in each State.
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•HR 2419 EH1S 
‘‘(4) PUBLIC AVAILABILITY OF REPORT.—The 
Secretary shall maintain and make readily available 
to the public, via website and otherwise in electronic 
and paper form, the report described in paragraph 
(3). 
‘‘(d) LIMITATIONS ON USE OF DATA.— 
‘‘(1) PRIVACY PROTECTIONS.—In carrying out 
this section, the Secretary shall not disclose the 
names or individual data of any program partici-
pant. 
‘‘(2) AUTHORIZED USES.—The data under this 
section shall be used exclusively for the purposes de-
scribed in subsection (a). 
‘‘(3) LIMITATION.—Except as otherwise pro-
vided, the data under this section shall not be used 
for the evaluation of individual applications for as-
sistance.’’. 
SEC. 11204. BEGINNING FARMER AND RANCHER DEVELOP-
MENT PROGRAM. 
Section 7405 of the Farm Security and Rural Invest-
ment Act of 2002 (7 U.S.C. 3319f) is amended by striking 
subsection (h) and inserting the following new subsection: 
‘‘(h) AVAILABILITY OF FUNDS.—Of the funds of the 
Commodity Credit Corporation, the Secretary shall make
821 
•HR 2419 EH1S 
available $15,000,000 for each of the fiscal years 2008 
through 2012 to carry out this section.’’. 
SEC. 11205. PROVISION OF RECEIPT FOR SERVICE OR DE-
NIAL OF SERVICE. 
In any case in which a producer or landowner, or pro-
spective producer or landowner, requests from the Depart-
ment of Agriculture any benefit or service offered by the 
Department to agricultural producers or landowners, the 
Secretary of Agriculture shall provide for the issuance, on 
the date on which the producer or landowner, or prospec-
tive producer or landowner, makes the request, a receipt 
containing— 
(1) the date, place, and subject of the request; 
and 
(2) the action taken, not taken, or rec-
ommendations made in response to the request. 
SEC. 11206. TRACKING OF SOCIALLY DISADVANTAGED 
FARMERS AND RANCHERS AND LIMITED RE-
SOURCE FARMERS AND RANCHERS IN CEN-
SUS OF AGRICULTURE AND CERTAIN STUD-
IES. 
The Secretary of Agriculture shall ensure, to the 
maximum extent practicable, that the Census of Agri-
culture and studies carried out by the Economic Research 
Service accurately document the number, location, and
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•HR 2419 EH1S 
economic contributions of socially disadvantaged farmers 
and ranchers and limited resource farmers and ranchers 
in agricultural production. 
SEC. 11207. FARMWORKER COORDINATOR. 
(a) ESTABLISHMENT.—The Secretary of Agriculture 
shall establish the position of Farmworker Coordinator (in 
this section referred to as the ‘‘Coordinator’’), which shall 
be located in the Office of Outreach of the Department 
of Agriculture. 
(b) DUTIES.—The Secretary may delegate to the Co-
ordinator responsibility for any or all of the following: 
(1) Assisting in administering the program es-
tablished by section 2281 of the Food, Agriculture, 
Conservation, and Trade Act of 1990 (42 U.S.C. 
5177a). 
(2) Serving as a liaison to community-based 
non-profit organizations that represent, and have 
demonstrated experience serving, low-income mi-
grant and seasonal farmworkers. 
(3) Coordinating with the Department of Agri-
culture and State and local governments to assure 
that farmworker needs are assessed and met during 
declared disasters and other emergencies. 
(4) Consulting with the Office of Small Farm 
Coordination, Office of Outreach, Outreach Coordi-
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•HR 2419 EH1S 
nators, and other entities to better integrate farm-
worker perspectives, concerns, and interests into the 
ongoing programs of the Department. 
(5) Consulting with Hispanic-serving institu-
tions on research, program improvements, or agri-
cultural education opportunities that assist low-in-
come and migrant seasonal farmworkers. 
(6) Assuring that farmworkers have access to 
services and support to enter agriculture as pro-
ducers. 
(c) AUTHORIZATION
OF APPROPRIATIONS.—There 
are authorized to be appropriated to the Secretary such 
sums as necessary to carry out this section for fiscal years 
2008 through 2012. 
SEC. 11208. OFFICE OF OUTREACH RELOCATION. 
(a) RELOCATION PROPOSAL.—Not more than 18 
months after the date of enactment of the Act, the Sec-
retary shall develop a proposal to relocate the Office of 
Outreach of the Department of Agriculture. 
(b) ADMINISTRATION.—The Office of Outreach shall 
be responsible for the administration of— 
(1) the outreach and technical assistance pro-
gram established under section 2501 of the Food, 
Agriculture, Conservation, and Trade Act of 1990 (7 
U.S.C. 2279);
824 
•HR 2419 EH1S 
(2) the beginning farmer and rancher develop-
ment program established under section 7405 of the 
Farm Security and Rural Investment Act of 2002 (7 
U.S.C. 3319f); and 
(3) the coordination of the outreach activities 
among the various agencies within the Department. 
(c) REPORT.—After the relocation described in this 
section is completed, the Secretary shall submit to Con-
gress a report that includes information describing the 
new location of the program. 
SEC. 11209. MINORITY FARMER ADVISORY COMMITTEE. 
(a) ESTABLISHMENT.—Not later than 18 months 
after the date of enactment of this Act, the Secretary of 
Agriculture shall establish an advisory committee, to be 
known as the ‘‘Advisory Committee on Minority Farmers’’ 
(in this section referred to as the ‘‘Committee’’), which 
shall be overseen by the Office of Outreach of the Depart-
ment of Agriculture. 
(b) DUTIES.—The Committee shall— 
(1) review all civil rights cases to ensure that 
they are processed in a timely manner; 
(2) ensure that the processing of civil rights 
cases complies with applicable laws; 
(3) report quarterly to the Secretary of Agri-
culture on civil rights enforcement and outreach;
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•HR 2419 EH1S 
(4) monitor and annually report to Congress on 
compliance with all civil rights and related laws by 
all agencies and under all programs of the Depart-
ment; 
(5) recommend to the Secretary corrective ac-
tions to prevent civil rights violations; 
(6) review the operations of the outreach and 
technical assistance program established under sec-
tion 2501 of the Food, Agriculture, Conservation, 
and Trade Act of 1990 (7 U.S.C. 2279); and 
(7) review ongoing efforts toward outreach in 
the agencies and programs of the Department. 
(c) MEMBERSHIP OF COMMITTEE.—The Committee 
shall be composed of the following: 
(1) Three members appointed by the Secretary. 
(2) Two members appointed by the chairman of 
the Committee on Agriculture, Nutrition, and For-
estry of the Senate, in consultation with the ranking 
member of the Committee. 
(3) Two members appointed by the chairman of 
the Committee on Agriculture of the House of Rep-
resentatives, in consultation with the ranking mem-
ber of the Committee. 
(4) A civil rights professional. 
(5) A socially disadvantaged farmer or rancher.
826 
•HR 2419 EH1S 
(6) Such other persons or professionals as de-
termined by the Secretary to be appropriate. 
SEC. 11210. COORDINATOR FOR CHRONICALLY UNDER-
SERVED RURAL AREAS. 
(a) ESTABLISHMENT.—The Secretary of Agriculture 
shall establish a Coordinator for Chronically Underserved 
Rural Areas (in this section referred to as the ‘‘Coordi-
nator’’), to be located in the Office of Outreach of the De-
partment of Agriculture. 
(b) MISSION.—The mission of the Coordinator shall 
be to direct Department of Agriculture resources to high 
need, high poverty rural areas. 
(c) DUTIES.—The Coordinator shall consult with 
other offices in directing technical assistance, strategic re-
gional planning, at the State and local level, for developing 
rural economic development that leverages the resources 
of State and local governments and non-profit and com-
munity development organizations. 
(d) AUTHORIZATION
OF APPROPRIATIONS.—There 
are authorized to be appropriated to the Secretary such 
sums as necessary to carry out this section for fiscal years 
2008 through 2012.
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•HR 2419 EH1S 
Subtitle D—Other Miscellaneous 
Provisions 
SEC. 11301. DESIGNATION OF SEPARATE COTTON-PRO-
DUCING STATES UNDER COTTON RESEARCH 
AND PROMOTION ACT. 
Section 17(f) of the Cotton Research and Promotion 
Act (7 U.S.C. 2116(f)) is amended by adding at the end 
the following new sentence: ‘‘Notwithstanding the pre-
ceding sentence, effective beginning with the 2008 crop 
of cotton, the States of Kansas, Virginia, and Florida shall 
each be deemed to be a separate cotton-producing State 
for the purposes of this Act.’’. 
SEC. 11302. COTTON CLASSIFICATION SERVICES. 
(a) EXTENSION.—The first sentence of section 3a of 
the Act of March 3, 1927 (commonly known as the Cotton 
Statistics and Estimates Act; 7 U.S.C. 473a), is amended 
by striking ‘‘2007’’ and inserting ‘‘2012’’. 
(b) ESTABLISHMENT OF OFFICES.—The second sen-
tence of section 3a of the Act of March 3, 1927, is amend-
ed in the proviso— 
(1) by striking ‘‘and’’ at the end of clause (6); 
(2) by striking the period at the end of clause 
(7) and inserting ‘‘; and’’; and 
(3) by adding at the end the following new 
clause: ‘‘(8) the Secretary may enter into long-term
828 
•HR 2419 EH1S 
lease agreements that exceed five years or may take 
title to property, including through purchase agree-
ments, for the purposes of obtaining offices to be 
used for the classification of cotton in accordance 
with this Act if the Secretary determines such action 
would best effectuate the purposes of this Act.’’. 
SEC. 11303. AVAILABILITY OF EXCESS AND SURPLUS COM-
PUTERS IN RURAL AREAS. 
The Secretary of Agriculture may make available to 
any city or town located in a rural area (as defined in 
section 343(a)(13)(A) of the Consolidated Farm and 
Rural Development Act) excess or surplus computers or 
other technical equipment of the Department of Agri-
culture. 
SEC. 11304. PERMANENT DEBARMENT FROM PARTICIPA-
TION IN DEPARTMENT OF AGRICULTURE 
PROGRAMS FOR FRAUD. 
The Secretary of Agriculture is hereby granted the 
authority to permanently debar an individual, organiza-
tion, corporation, or other entity convicted of knowingly 
defrauding the United States in connection with any pro-
gram administered by the Department of Agriculture from 
any subsequent participation in Department of Agri-
culture programs.
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•HR 2419 EH1S 
SEC. 11305. NO DISCRIMINATION AGAINST USE OF REG-
ISTERED PESTICIDE PRODUCTS OR CLASSES 
OF PESTICIDE PRODUCTS. 
In establishing priorities and evaluation criteria for 
the approval of plans, contracts, and agreements under 
title II, the Secretary of Agriculture shall not discriminate 
against the use of specific registered pesticide products or 
classes of pesticide products. 
SEC. 11306. PROHIBITION ON CLOSURE OR RELOCATION OF 
COUNTY OFFICES FOR THE FARM SERVICE 
AGENCY, 
RURAL 
DEVELOPMENT 
AGENCY, 
AND NATURAL RESOURCES CONSERVATION 
SERVICE. 
Until the date that is one year after the date of the 
enactment of this Act, the Secretary of Agriculture may 
not close or relocate a county or field office of the Farm 
Service Agency, Rural Development Agency, or Natural 
Resources Conservation Service of the Department of Ag-
riculture. 
SEC. 11307. REGULATION OF EXPORTS OF PLANTS, PLANT 
PRODUCTS, BIOLOGICAL CONTROL ORGA-
NISMS, AND NOXIOUS WEEDS. 
(a) IN GENERAL.—Subtitle A of title IV of the Agri-
cultural Risk Protection Act of 2000 (7 U.S.C. 7701 et 
seq.) is amended by adding at the end the following new 
section:
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•HR 2419 EH1S 
‘‘SEC. 420. REGULATION OF EXPORTS OF PLANTS, PLANT 
PRODUCTS, BIOLOGICAL CONTROL ORGA-
NISMS, AND NOXIOUS WEEDS. 
‘‘(a) IN GENERAL.—The Secretary may regulate 
plants, plant products, biological control organisms, and 
noxious weeds for export purposes. 
‘‘(b) DUTIES.—The Secretary shall— 
‘‘(1) coordinate fruit and vegetable market 
analyses with the private sector and the Adminis-
trator of Foreign Agricultural Service; and 
‘‘(2) make publicly available on an Internet 
website— 
‘‘(A) the status of all export petitions; 
‘‘(B) to the greatest extent possible, an ex-
planation of the sanitary or phytosanitary 
issues associated with each pending export peti-
tion; and 
‘‘(C) to the greatest extent possible, infor-
mation on the import requirements of foreign 
countries for fruits and vegetables. 
‘‘(c) REGULATIONS.—The Secretary may issue regu-
lations to implement this section.’’. 
(b) TABLE OF CONTENTS.—The table of contents in 
section 1(b) of such Act (7 U.S.C. 1501 note) is amended 
by inserting after the item relating to section 419 the fol-
lowing new item:
831 
•HR 2419 EH1S 
‘‘Sec. 420. Regulation of exports of plants, plant products, biological control or-
ganisms, and noxious weeds.’’. 
SEC. 
11308. 
GRANTS 
TO 
REDUCE 
PRODUCTION 
OF 
METHAMPHETAMINES 
FROM 
ANHYDROUS 
AMMONIA. 
(a) GRANT AUTHORITY.—The Secretary of Agri-
culture may make a grant to an eligible entity to enable 
the entity to obtain and add to an anhydrous ammonia 
fertilizer nurse tank a substance which will reduce the 
amount of methamphetamine which can be produced from 
any anhydrous ammonia removed from the tank. 
(b) DEFINITIONS.—In this section: 
(1) ELIGIBLE ENTITY.—The term ‘‘eligible enti-
ty’’ means— 
(A) a producer of agricultural commod-
ities; 
(B) a cooperative association a majority of 
the members of which produce or process agri-
cultural commodities, and 
(C) a person in the trade or business of— 
(i) selling an agricultural product, in-
cluding an agricultural chemical, at retail, 
predominantly to farmers and ranchers; or 
(ii) aerial and ground application of 
an agricultural chemical.
832 
•HR 2419 EH1S 
(2) NURSE
TANK.—The term ‘‘nurse tank’’ 
shall have the meaning set forth in section 
173.315(m) of title 49, Code of Federal Regulations, 
as in effect as of the date of the enactment of this 
Act. 
(c) GRANT AMOUNT.—The amount of a grant made 
under this section to an entity shall be not less than $40 
and not more than $60, multiplied by the number of fer-
tilizer nurse tanks of the entity. 
(d) LIMITATIONS
ON AUTHORIZATION
OF APPRO-
PRIATIONS.—For grants under this section, there are au-
thorized to be appropriated to the Secretary a total of not 
more than $15,000,000 for fiscal years 2008 through 
2012. 
SEC. 11309. USDA GRADUATE SCHOOL. 
(a) Section 921 of the Federal Agriculture Improve-
ment and Reform Act of 1996 (7 U.S.C. 2279b) is amend-
ed by striking subsections (a) through (k) and inserting 
the following: ‘‘The Department of Agriculture shall not 
establish, maintain, or otherwise operate a non-
appropriated fund instrumentality of the United States to 
develop, administer, or provide educational training and 
professional development activities, including educational 
activities for Federal agencies, Federal employees, non-
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profit organizations, other entities, and members of the 
general public.’’. 
(b) EFFECTIVE DATE.—The amendment made in 
subsection (a) apply beginning October 1, 2008. 
SEC. 11310. PREVENTION AND INVESTIGATION OF PAY-
MENT AND FRAUD AND ERROR. 
Section 1113(k) of the Right to Financial Privacy 
Act of 1978 (12 U.S.C. 3413(k)) is amended to read as 
follows: 
‘‘(k) DISCLOSURE NECESSARY FOR PROPER ADMIN-
ISTRATION OF PROGRAMS OF CERTAIN GOVERNMENT AU-
THORITIES.— 
‘‘(1) DISCLOSURE TO GOVERNMENT AUTHORI-
TIES.—Nothing in this title shall apply to the disclo-
sure by the financial institution of the financial 
records of any customer to the Department of the 
Treasury, the Social Security Administration, the 
Railroad Retirement Board, or any other Govern-
ment authority that certifies, disburses, or collects 
payments, when the disclosure of such information is 
necessary to, and such information is used solely for 
the purposes of— 
‘‘(A) the proper administration of section 
1441 of the Internal Revenue Code of 1986 (26 
U.S.C. 1441);
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‘‘(B) the proper administration of title II 
of the Social Security Act (42 U.S.C. 401 et 
seq.); 
‘‘(C) the proper administration of the Rail-
road Retirement Act of 1974 (45 U.S.C. 231 et 
seq.); 
‘‘(D) the verification of the identify of any 
person in connection with the issuance of a 
Federal payment or collection of funds by a 
Government authority; or 
‘‘(E) the investigation or recovery of an 
improper Federal payment or collection of 
funds, or an improperly negotiated Treasury 
check. 
‘‘(2) LIMITATIONS
ON
SUBSEQUENT
DISCLO-
SURE.—Notwithstanding any other provision of law, 
any request authorized by paragraph (1), and the in-
formation contained therein, may be used by the fi-
nancial institution and its agents solely for the pur-
pose of providing the customer’s financial records to 
the Government authority requesting the informa-
tion and shall be barred from redisclosure by the fi-
nancial institution or its agents. Any Government 
authority receiving information pursuant to para-
graph (1) may not disclose or use the information
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except for the purposes set forth in such para-
graph.’’. 
SEC. 11311. SENSE OF CONGRESS REGARDING FOOD 
DESERTS, 
GEOGRAPHICALLY 
ISOLATED 
NEIGHBORHOODS AND COMMUNITIES WITH 
LIMITED OR NO ACCESS TO MAJOR CHAIN 
GROCERY STORES. 
It is the sense of Congress that the Secretary of Agri-
culture, in conjunction with the National Institutes of 
Health, the Centers for Disease Control, the Institute of 
Medicine and faith-based organizations, should— 
(1) conduct a national assessment of food 
deserts in the United States, namely those geo-
graphically isolated neighborhoods and communities 
with limited or no access to major-chain grocery 
stores; and 
(2) develop recommendations for eliminating 
food deserts. 
SEC. 11312. PIGFORD CLAIMS. 
(a) IN GENERAL.—Any Pigford claimant who has not 
previously obtained a determination on the merits of a 
Pigford claim may, in a civil action, obtain that determina-
tion. 
(b) LIMITATION.—Notwithstanding any other provi-
sion of law—
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(1) all payments or debt relief (including any 
limitation on foreclosure under subsection (f)) made 
pursuant to an action commenced under subsection 
(a) shall be made exclusively from funds made avail-
able pursuant to subsection (h), Provided that the 
total amount of payments and debt relief pursuant 
to an action commenced under subsection (a) shall 
not exceed $100,000,000; and 
(2) in no event may such payments or debt re-
lief be made from the Judgement Fund established 
by 31 U.S.C. 1304. 
(c) INTENT OF CONGRESS AS TO REMEDIAL NATURE 
OF SECTION.—It is the intent of Congress that this sec-
tion be liberally construed so as to effectuate its remedial 
purpose of giving a full determination on the merits for 
each Pigford claim denied that determination. 
(d) LOAN DATA.— 
(1) REPORT
TO
PERSON
SUBMITTING
PETI-
TION.—Not later than 60 days after the Secretary 
of Agriculture receives notice of a complaint filed by 
a claimant under subsection (a), the Secretary shall 
provide to the claimant a report on farm credit loans 
made within the claimant’s county or adjacent coun-
ty by the Department during the period beginning 
on January 1 of the year preceding the year or years
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covered by the complaint and ending on December 
31 of year following such year or years. Such report 
shall contain information on all persons whose appli-
cation for a loan was accepted, including— 
(A) the race of the applicant; 
(B) the date of application; 
(C) the date of the loan decision; 
(D) the location of the office making the 
loan decision; and 
(E) all data relevant to the process of de-
ciding on the loan. 
(2) NO PERSONALLY IDENTIFIABLE INFORMA-
TION.—The reports provided pursuant to paragraph 
(1) shall not contain any information that would 
identify any person that applied for a loan from the 
Department of Agriculture. 
(e) EXPEDITED RESOLUTIONS AUTHORIZED.—Any 
person filing a complaint under this Act for discrimination 
in the application for, or making or servicing of, a farm 
loan, at his or her discretion, may seek liquidated damages 
of $50,000, discharge of the debt that was incurred under, 
or affected by, the discrimination that is the subject of 
the person’s complaint, and a tax payment in the amount 
equal to 25 percent of the liquidated damages and loan 
principal discharged, in which case—
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(1) if only such damages, debt discharge, and 
tax payment are sought, the complainant shall be 
able to prove his or her case by substantial evidence; 
and 
(2) the court shall decide the case based on a 
review of documents submitted by the complainant 
and defendant relevant to the issues of liability and 
damages. 
(f) LIMITATION ON FORECLOSURES.—The Secretary 
of Agriculture may not begin acceleration on or foreclosure 
of a loan if a borrower is a Pigford claimant and, in an 
appropriate administrative proceeding, makes a prima 
facie case that the foreclosure is related to a Pigford 
claim. 
(g) DEFINITIONS.—In this Act— 
(1) the term ‘‘Pigford claimant’’ means an indi-
vidual who previously submitted a late-filing request 
under section 5(g) of the consent decree in the case 
of Pigford v. Glickman, approved by the United 
States District Court for the District of Columbia on 
April 14, 1999; and 
(2) the term ‘‘Pigford claim’’ means a discrimi-
nation complaint, as defined by section 1(h) of that 
consent decree and documented under section 5(b) 
of that consent decree.
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(h) FUNDING.—Of the funds of the Commodity Cred-
it Corporation, the Secretary shall make available 
$100,000,000 for fiscal year 2008, to remain available 
until expended, for payments and debt relief in satisfac-
tion of claims against the United States under subsection 
(a), and for any actions made pursuant to subsection (f). 
SEC. 11313. COMPTROLLER GENERAL STUDY OF WASTE-
WATER 
INFRASTRUCTURE 
NEAR 
UNITED 
STATES-MEXICO BORDER. 
The Comptroller General shall conduct a study of the 
state of wastewater infrastructure in rural communities 
within 150 miles of the United States-Mexico border to 
determine what the Federal Government can do to assist 
border rural communities in bringing wastewater infra-
structure up to date. 
SEC. 11314. ELIMINATION OF STATUTE OF LIMITATIONS AP-
PLICABLE TO COLLECTION OF DEBT BY AD-
MINISTRATIVE OFFSET. 
(a) ELIMINATION.—Section 3716(e) of title 31, 
United States Code, is amended to read as follows: 
‘‘(e)(1) Notwithstanding any other provision of law, 
regulation, or administrative limitation, no limitation on 
the period within which an offset may be initiated or taken 
pursuant to this section shall be effective.
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‘‘(2) This section does not apply when a statute ex-
plicitly prohibits using administrative offset or setoff to 
collect the claim or type of claim involved.’’. 
(b) APPLICATION OF AMENDMENT.—The amendment 
made by subsection (a) shall apply to any debt outstanding 
on or after the date of the enactment of this Act. 
SEC. 11315. POLLINATOR PROTECTION. 
(a) SHORT TITLE.—This section may be cited as the 
‘‘Pollinator Protection Act of 2007’’. 
(b) FINDINGS.—Congress finds that— 
(1) many of the crops that humans and live-
stock consume rely on pollinators for healthy 
growth; 
(2) pollination by honey and native bees adds 
more than $18,000,000,000 annually to the value of 
United States crops; 
(3) 1⁄3 of the food supply of the United States 
depends on bee pollination, which makes the man-
agement and protection of pollinators an issue of 
paramount importance to the security of the United 
States food supply system; 
(4) colony collapse disorder is the name that 
has been given to the latest die-off of honey bee colo-
nies, exacerbating the continual decline of pollinators 
in North America;
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•HR 2419 EH1S 
(5) honey bee colonies in more than 23 states 
have been affected by colony collapse disorder; 
(6) if the current rate of decline continues, the 
United States will be forced to rely more heavily on 
imported foods, which will destabilize the food secu-
rity of the United States through adverse affects on 
the availability, price, and quality of the many fruits, 
vegetables, and other products that depend on ani-
mal pollination; and 
(7) enhanced funding for research on honey 
bees, native bees, parasites, pathogens, toxins, and 
other environmental factors affecting bees and polli-
nation of cultivated and wild plants will result in 
methods of response to colony collapse disorder and 
other factors causing the decline of pollinators in 
North America. 
(c) AUTHORIZATIONS OF APPROPRIATIONS.— 
(1) 
AGRICULTURAL
RESEARCH
SERVICE.— 
There is authorized to be appropriated to the Sec-
retary of Agriculture, acting through the Agricul-
tural Research Service— 
(A) $3,000,000 for each of fiscal years 
2008 through 2012, to be used for new per-
sonnel, facilities improvement, and additional
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•HR 2419 EH1S 
research at Department of Agriculture Bee Re-
search Laboratories; 
(B) $2,500,000 for each of fiscal years 
2008 and 2009, to be used for research on 
honey and native bee physiology, insect pathol-
ogy, insect chemical ecology, and honey and na-
tive bee toxicology at other Department of Agri-
culture facilities in New York, Florida, Cali-
fornia, Utah, and Texas; and 
(C) $1,750,000 for each of fiscal years 
2008 through 2010, to be used for an area-wide 
research program to identify causes and solu-
tions for colony collapse disorder in affected 
States. 
(2) COOPERATIVE
STATE
RESEARCH, 
EDU-
CATION, AND
EXTENSION
SERVICE.—There is au-
thorized to be appropriated to the Secretary of Agri-
culture, acting through the Cooperative State Re-
search, 
Education, 
and 
Extension 
Service, 
$10,000,000 for each of fiscal years 2008 through 
2012 to be used to fund Department of Agriculture 
extension and research grants to investigate— 
(A) honey bee biology, immunology, and 
ecology; 
(B) honey bee genomics;
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•HR 2419 EH1S 
(C) honey bee bioinformatics; 
(D) native bee crop pollination and habitat 
conservation; 
(E) native bee taxonomy and ecology; 
(F) pollination biology; 
(G) sublethal effects of insecticides, herbi-
cides, and fungicides on honey bees, native pol-
linators, and other beneficial insects; 
(H) the effects of genetically-modified 
crops, including the interaction of genetically- 
modified crops with honey bees and other native 
pollinators; and 
(I) honey, bumble, and other native bee 
parasites and pathogens and effects on other 
native pollinators. 
(3) ANIMAL AND PLANT HEALTH INSPECTION 
SERVICE.—There is authorized to be appropriated to 
the Secretary of Agriculture, acting through the Ani-
mal 
and 
Plant 
Health 
Inspection 
Service, 
$2,250,000 for each of fiscal years 2008 through 
2012 to conduct a nationwide honey bee pest and 
pathogen surveillance program. 
(d) ANNUAL REPORTS.—The Secretary of Agri-
culture, acting through the Agricultural Research Service 
and the Cooperative State Research, Education, and Ex-
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•HR 2419 EH1S 
tension Service, shall submit to the Committee on Agri-
culture of the House of Representatives and the Com-
mittee on Agriculture, Nutrition, and Forestry of the Sen-
ate a report on the status and progress of bee research 
projects that are carried out by the Secretary. 
(e) GIVING POLLINATOR HABITAT AND PROTECTION 
A
PRIORITY
IN
CONSERVATION
PROGRAMS.—Section 
1244 of the Food Security Act of 1985 (16 U.S.C. 3844) 
is amended by adding at the end the following new sub-
section: 
‘‘(c) NATIVE AND MANAGED POLLINATORS.—In car-
rying out any conservation program administered by the 
Secretary, except the farmland protection program, the 
Secretary shall establish a priority and provide incentives 
for— 
‘‘(1) increasing habitat for native and managed 
pollinators, especially native habitat; and 
‘‘(2) establishing cropping systems, integrated 
pest management regimes, and other practices to 
protect native and managed pollinators.’’. 
SEC. 11316. PROHIBITION ON USE OF LIVE ANIMALS FOR 
MARKETING 
MEDICAL 
DEVICES; 
FINES 
UNDER THE ANIMAL WELFARE ACT. 
(a) PROHIBITION ON USE OF ANIMALS FOR MAR-
KETING OF MEDICAL DEVICES.—The Animal Welfare Act
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•HR 2419 EH1S 
(7 U.S.C. 2131 et seq.) is amended by inserting after sec-
tion 17 the following new section: 
‘‘PROHIBITION ON USE OF LIVE ANIMALS FOR 
MARKETING MEDICAL DEVICES 
‘‘SEC. 18. (a) IN GENERAL.—No person may use a 
live animal to— 
‘‘(1) demonstrate a medical device or product to 
a sales representative for the purpose of marketing 
such medical device or product; 
‘‘(2) train a sales representative to use a med-
ical device or product; 
‘‘(3) demonstrate a medical device or product in 
a workshop or training session for the purpose of 
marketing a medical device or product; or 
‘‘(4) create a multimedia recording (including a 
video recording) for the purpose of marketing a 
medical device or product. 
‘‘(b) EXCEPTION.—Subsection (a) shall not apply to 
the training of medical personnel for a purpose other than 
marketing a medical device or product. 
‘‘(c) DEVICE DEFINED.—In this section, the term 
‘device’ has the meaning given the term in section 201(h) 
of the Federal Food, Drug, and Cosmetic Act (21 U.S.C. 
321(h)).’’.
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•HR 2419 EH1S 
(b) FINES FOR VIOLATIONS OF THE ANIMAL WEL-
FARE ACT.—Section 19(b) of the Animal Welfare Act (7 
U.S.C. 2149(b)) is amended— 
(1) in the first sentence by striking ‘‘not more 
than $2,500 for each such violation’’ and inserting 
‘‘not more than $10,000 for each such violation’’; 
and 
(2) by striking the second sentence and insert-
ing the following: ‘‘Each violation, each day during 
which a violation continues, and, in the case of a vio-
lation with respect to animals, each animal that is 
the subject of such a violation shall be a separate of-
fense.’’. 
(c) REPORTS ON ACTIVITIES UNDER THE ANIMAL 
WELFARE ACT.—The Animal Welfare Act (7 U.S.C. 2131 
et seq.) is further amended by striking section 25 and in-
serting the following new section: 
‘‘ANNUAL REPORT 
‘‘SEC. 25. Not later than March 1 of each year, the 
Secretary shall submit to Congress a report containing— 
‘‘(1) an identification of all research facilities, 
exhibitors, and other persons and establishments li-
censed by the Secretary under section 3 and section 
12;
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•HR 2419 EH1S 
‘‘(2) an identification of all research facilities, 
intermediate handlers, carriers, and exhibitors reg-
istered under section 6; 
‘‘(3) the nature and place of all investigations 
and inspections conducted by the Secretary under 
section 16, and all reports received by the Secretary 
under section 13; 
‘‘(4) recommendations for legislation to improve 
the administration of this Act or any provisions of 
this Act; and 
‘‘(5) recommendations and conclusions con-
cerning the aircraft environment as it relates to the 
carriage of live animals in air transportation.’’. 
SEC. 11317. PROTECTION OF PETS. 
(a) SHORT TITLE.—This section may be cited as the 
‘‘Pet Safety and Protection Act of 2007’’. 
(b) RESEARCH FACILITIES.—Section 7 of the Animal 
Welfare Act (7 U.S.C. 2137) is amended to read as fol-
lows: 
‘‘SEC. 7. SOURCES OF DOGS AND CATS FOR RESEARCH FA-
CILITIES. 
‘‘(a) DEFINITION OF PERSON.—In this section, the 
term ‘person’ means any individual, partnership, firm, 
joint stock company, corporation, association, trust, es-
tate, pound, shelter, or other legal entity.
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•HR 2419 EH1S 
‘‘(b) USE OF DOGS AND CATS.—No research facility 
or Federal research facility may use a dog or cat for re-
search or educational purposes if the dog or cat was ob-
tained from a person other than a person described in sub-
section (d). 
‘‘(c) SELLING, DONATING, OR OFFERING DOGS AND 
CATS.—No person, other than a person described in sub-
section (d), may sell, donate, or offer a dog or cat to any 
research facility or Federal research facility. 
‘‘(d) PERMISSIBLE SOURCES.—A person from whom 
a research facility or a Federal research facility may ob-
tain a dog or cat for research or educational purposes 
under subsection (b), and a person who may sell, donate, 
or offer a dog or cat to a research facility or a Federal 
research facility under subsection (c), shall be— 
‘‘(1) a dealer licensed under section 3 that has 
bred and raised the dog or cat; 
‘‘(2) a publicly owned and operated pound or 
shelter that— 
‘‘(A) is registered with the Secretary; 
‘‘(B) is in compliance with section 28(a)(1) 
and with the requirements for dealers in sub-
sections (b) and (c) of section 28; and 
‘‘(C) obtained the dog or cat from its legal 
owner, other than a pound or shelter;
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•HR 2419 EH1S 
‘‘(3) a person that is donating the dog or cat 
and that— 
‘‘(A) bred and raised the dog or cat; or 
‘‘(B) owned the dog or cat for not less 
than 1 year immediately preceding the dona-
tion; 
‘‘(4) a research facility licensed by the Sec-
retary; and 
‘‘(5) a Federal research facility licensed by the 
Secretary. 
‘‘(e) PENALTIES.— 
‘‘(1) IN GENERAL.—A person that violates this 
section shall be fined $1,000 for each violation. 
‘‘(2) ADDITIONAL PENALTY.—A penalty under 
this subsection shall be in addition to any other ap-
plicable penalty. 
‘‘(f) NO REQUIRED SALE OR DONATION.—Nothing 
in this section requires a pound or shelter to sell, donate, 
or offer a dog or cat to a research facility or Federal re-
search facility.’’. 
(c) FEDERAL RESEARCH FACILITIES.—Section 8 of 
the Animal Welfare Act (7 U.S.C. 2138) is amended— 
(1) by striking ‘‘Sec. 8. No department’’ and 
inserting the following:
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•HR 2419 EH1S 
‘‘SEC. 8. FEDERAL RESEARCH FACILITIES. 
‘‘Except as provided in section 7, no department’’; 
(2) by striking ‘‘research or experimentation 
or’’; and 
(3) by striking ‘‘such purposes’’ and inserting 
‘‘that purpose’’. 
(d) CERTIFICATION.—Section 28(b)(1) of the Animal 
Welfare Act (7 U.S.C. 2158(b)(1)) is amended by striking 
‘‘individual or entity’’ and inserting ‘‘research facility or 
Federal research facility’’. 
(e) EFFECTIVE DATE.—The amendments made by 
subsections (b), (c), and (d) take effect on the date that 
is 90 days after the date of the enactment of this Act. 
TITLE XII—PREVENTION OF TAX 
TREATY 
EXPLOITATION 
TO 
EVADE UNITED STATES TAX-
ATION 
Sec. 12001. Limitation on treaty benefits for certain deductible payments. 
SEC. 12001. LIMITATION ON TREATY BENEFITS FOR CER-
TAIN DEDUCTIBLE PAYMENTS. 
(a) IN GENERAL.—Section 894 of the Internal Rev-
enue Code of 1986 (relating to income affected by treaty) 
is amended by adding at the end the following new sub-
section: 
‘‘(d) LIMITATION ON TREATY BENEFITS FOR CER-
TAIN DEDUCTIBLE PAYMENTS.—
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•HR 2419 EH1S 
‘‘(1) IN GENERAL.—In the case of any deduct-
ible related-party payment, the amount of any with-
holding tax imposed under chapter 3 (and any tax 
imposed under subpart A or B of this part) with re-
spect to such payment shall not be less than the 
amount which would be imposed if the payment were 
made directly to the foreign parent corporation (tak-
ing into account any income tax treaty between the 
United States and the country in which the foreign 
parent corporation is resident). 
‘‘(2) 
DEDUCTIBLE
RELATED-PARTY
PAY-
MENT.—For purposes of this subsection, the term 
‘deductible related-party payment’ means any pay-
ment made, directly or indirectly, by any person to 
any other person if the payment is allowable as a de-
duction under this chapter and both persons are 
members of the same foreign controlled group of en-
tities. 
‘‘(3) FOREIGN CONTROLLED GROUP OF ENTI-
TIES.—For purposes of this subsection— 
‘‘(A) IN
GENERAL.—The term ‘foreign 
controlled group of entities’ means a controlled 
group of entities the common parent of which 
is a foreign corporation.
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•HR 2419 EH1S 
‘‘(B) CONTROLLED GROUP OF ENTITIES.— 
The term ‘controlled group of entities’ means a 
controlled group of corporations as defined in 
section 1563(a)(1), except that— 
‘‘(i) ‘more than 50 percent’ shall be 
substituted for ‘at least 80 percent’ each 
place it appears therein, and 
‘‘(ii) the determination shall be made 
without regard to subsections (a)(4) and 
(b)(2) of section 1563. 
A partnership or any other entity (other than a 
corporation) shall be treated as a member of a 
controlled group of entities if such entity is con-
trolled 
(within 
the 
meaning 
of 
section 
954(d)(3)) by members of such group (includ-
ing any entity treated as a member of such 
group by reason of this sentence). 
‘‘(4) FOREIGN
PARENT
CORPORATION.—For 
purposes of this subsection, the term ‘foreign parent 
corporation’ means, with respect to any deductible 
related-party payment, the common parent of the 
foreign controlled group of entities referred to in 
paragraph (3)(A). 
‘‘(5) REGULATIONS.—The Secretary may pre-
scribe such regulations or other guidance as are nec-
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•HR 2419 EH1S 
essary or appropriate to carry out the purposes of 
this subsection, including regulations or other guid-
ance which provide for— 
‘‘(A) the treatment of two or more persons 
as members of a foreign controlled group of en-
tities if such persons would be the common par-
ent of such group if treated as one corporation, 
and 
‘‘(B) the treatment of any member of a 
foreign controlled group of entities as the com-
mon parent of such group if such treatment is 
appropriate taking into account the economic 
relationships among such entities.’’. 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall apply to payments made after the date 
of the enactment of this Act. 
TITLE XIII—ADDITIONAL 
OFFSETS 
Subtitle A—Conservation of Resources Fees and Repeal of Royalty Relief 
Sec. 13001. Conservation of resources fees. 
Sec. 13002. Repeal of certain taxpayer subsidized royalty relief for the oil and 
gas industry. 
Sec. 13003. Time for payment of corporate estimated taxes. 
Subtitle B—Allocation of Offsets 
Sec. 13011. Report on funds; rate of federal crop insurance.
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•HR 2419 EH1S 
Subtitle A—Conservation of Re-
sources Fees and Repeal of Roy-
alty Relief 
SEC. 13001. CONSERVATION OF RESOURCES FEES. 
(a) CONSERVATION OF RESOURCES FEES.— 
(1) IN GENERAL.—Not later than 60 days after 
the date of enactment of this Act, the Secretary of 
the Interior by regulation shall establish a conserva-
tion of resources fee for producing Federal oil and 
gas leases in the Gulf of Mexico. 
(2) FEE
TERMS.—The fee under paragraph 
(1)— 
(A) subject to subparagraph (C), shall 
apply to covered leases that are producing 
leases; 
(B) shall be set at $9 per barrel for oil and 
$1.25 per million Btu for gas, respectively, in 
2005 dollars; and 
(C) shall apply only to production of oil or 
gas occurring— 
(i) in any calendar year in which the 
arithmetic average of the daily closing 
prices for light sweet crude oil on the New 
York Mercantile Exchange (NYMEX) ex-
ceeds $34.73 per barrel for oil and $4.34
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•HR 2419 EH1S 
per million Btu for gas in 2005 dollars; 
and 
(ii) on or after October 1, 2006. 
(3) TREATMENT OF RECEIPTS.—Amounts re-
ceived by the United States as fees under this sub-
section shall be treated as offsetting receipts. 
(b) COVERED LEASE DEFINED.—In this section the 
term ‘‘covered lease’’ means a lease for oil or gas produc-
tion in the Gulf of Mexico that is— 
(1) in existence on the date of enactment of this 
Act; 
(2) issued by the Department of the Interior 
under section 304 of the Outer Continental Shelf 
Deep Water Royalty Relief Act (43 U.S.C. 1337 
note; Public Law 104–58); and 
(3) not subject to limitations on royalty relief 
based on market price that are equal to or less than 
the price thresholds described in clauses (v) through 
(vii) of section 8(a)(3)(C) of the Outer Continental 
Shelf Lands Act (43 U.S.C. 1337(a)(3)(C)).
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•HR 2419 EH1S 
SEC. 13002. REPEAL OF CERTAIN TAXPAYER SUBSIDIZED 
ROYALTY RELIEF FOR THE OIL AND GAS IN-
DUSTRY. 
(a) REPEAL OF PROVISIONS OF ENERGY POLICY ACT 
OF 2005.—The following provisions of the Energy Policy 
Act of 2005 (Public Law 109–58) are repealed: 
(1) Section 344 (42 U.S.C. 15904; relating to 
incentives for natural gas production from deep wells 
in shallow waters of the Gulf of Mexico). 
(2) Section 345 (42 U.S.C. 15905; relating to 
royalty relief for deep water production in the Gulf 
of Mexico). 
(3) Subsection (i) of section 365 (42 U.S.C. 
15924; relating to the prohibition on drilling-related 
permit application cost recovery fees). 
(b) PROVISIONS RELATING
TO PLANNING AREAS 
OFFSHORE ALASKA.—Section 8(a)(3)(B) of the Outer 
Continental Shelf Lands Act (43 U.S.C. 1337(a)(3)(B)) 
is amended by striking ‘‘and in the Planning Areas off-
shore Alaska’’ after ‘‘West longitude’’. 
(c) PROVISIONS RELATING TO NAVAL PETROLEUM 
RESERVE IN ALASKA.—Section 107 of the Naval Petro-
leum Reserves Production Act of 1976 (as transferred, re-
designated, moved, and amended by section 347 of the En-
ergy Policy Act of 2005 (119 Stat. 704)) is amended—
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•HR 2419 EH1S 
(1) in subsection (i) by striking paragraphs (2) 
through (6); and 
(2) by striking subsection (k). 
SEC. 13003. TIME FOR PAYMENT OF CORPORATE ESTI-
MATED TAXES. 
Subparagraph (B) of section 401(1) of the Tax In-
crease Prevention and Reconciliation Act of 2005 is 
amended by striking ‘‘114.50 percent’’ and inserting 
‘‘115.75 percent’’. 
Subtitle B—Allocation of Offsets 
SEC. 13011. REPORT ON FUNDS; RATE OF FEDERAL CROP 
INSURANCE. 
(a) REPORT.—Not later than the September 15 pre-
ceding each fiscal year, the Secretary of the Interior shall 
report to the Secretary of Agriculture the total amount 
expected to be received in the fiscal year as a result of 
the changes in subtitle A. 
(b) RATE.—Notwithstanding section 508(k)(4)(A)(ii) 
of 
the 
Federal 
Crop 
Insurance 
Act 
(7 
U.S.C. 
1508(k)(4)(A)(ii)), the reimbursement rate established for 
each of the reinsurance years 2012 through 2017 shall 
be the lesser of— 
(1) the rate established in such section; and 
(2) the product of—
858 
•HR 2419 EH1S 
(A) the rate established in such section; 
and 
(B) the factor calculated in subsection (c). 
(c) CALCULATION.—In carrying out subsection (b), 
the Secretary of the Interior shall calculate the appro-
priate factor by dividing the amount calculated under sub-
section (a) for the fiscal year by the amount calculated 
under subsection (a) for fiscal year 2012. 
Passed the House of Representatives July 27, 2007. 
Attest: 
Clerk.