111
is amended by adding at the end the following new sen-
tence: ‘‘In the case of a technical determination of the
Natural Resources Conservation Service regarding use of
a conservation system under subtitle B of title XII of the
Food Security Act of 1985 (16 U.S.C. 3811 et seq.), the
Consolidated Farm Service Agency may overrule the de-
termination if the Agency determines that strict applica-
tion of the determination causes undue economic hardship
on the person using the conservation system.’’.
(c) PROVISION
OF
TECHNICAL
ASSISTANCE
BY
OTHER SOURCES.—Section 1243 of the Food Security Act
for 1985 (16 U.S.C. 3843) is amended by adding at the
end the following new subsection:
‘‘(g) In the preparation and application of a conserva-
tion compliance plan under subtitle B or similar plan re-
quired as a condition for assistance from the Department
of Agriculture, the Secretary shall permit persons to se-
cure technical assistance from approved sources, as deter-
mined by the Secretary, other than the Natural Resources
Conservation Service. If the Secretary rejects a technical
determination made by such a source, the basis of Sec-
retary’s determination must be supported by clear and
convincing evidence.’’.
112
SEC. 
353. 
EXPEDITED 
PROCEDURES 
FOR 
GRANTING
VARIANCES FROM CONSERVATION PLANS.
Section 1212(f) of the Food Security Act of 1985 (16
U.S.C. 3812(f)(4)) is amended—
(1) in paragraph (4)(C), by striking ‘‘problem’’
and inserting ‘‘problem, including pest and disease
problems’’; and
(2) by adding at the end the following new
paragraph:
‘‘(5) After consultation with local conservation
districts, the Secretary shall establish expedited pro-
cedures for the consideration and granting of tem-
porary variances under paragraph (4)(C). If the re-
quest for a temporary variance under such para-
graph involves the use of practices or measures to
control pests or disease problems, the Secretary shall
make a decision on whether to grant the variance
within 30 days of receiving the request. If the Sec-
retary fails to render a decision within that time pe-
riod, the temporary variance shall be deemed to have
been granted.’’.
SEC. 354. GOOD FAITH EXEMPTION.
(a) GRACE PERIOD TO RESUME CONSERVATION
COMPLIANCE.—Paragraph (1) of section 1212(f) of the
Food Security Act of 1985 (16 U.S.C. 3812(f)) is amend-
ed—
113
(1) by striking ‘‘Except to the extent provided
in paragraph (2), no’’ and inserting ‘‘No’’; and
(2) by striking ‘‘such person has—’’ and all
that follows through the period at the end of sub-
paragraph (B) and inserting the following: ‘‘such
person has acted in good faith and without the in-
tent to violate the provisions of this subtitle. A per-
son who meets the requirements of this paragraph
shall be allowed a period of one year in which to im-
plement the measures and practices necessary to be
considered to be actively applying the person’s con-
servation plan.’’.
(b) SPECIAL
PENALTIES
REGARDING
CERTAIN
HIGHLY ERODIBLE CROPLAND.—Paragraph (2) of such
section is amended by striking ‘‘meets the requirements
of paragraph (1)’’ and inserting ‘‘with respect to highly
erodible cropland that was not in production prior to De-
cember 23, 1985, has acted in good faith and without the
intent to violate such provisions’’.
(c) CONFORMING AMENDMENT.—Paragraph (4) of
such section is amended by striking the last sentence.
SEC. 355. CONSERVATION RESERVE LANDS.
Section 1212(a)(3) of the Food Security Act of 1985
(16 U.S.C. 3812(a)(3)) is amended by striking ‘‘shall, if
the conservation plan established under this subtitle for
114
such land requires structures to be constructed,’’ and in-
serting ‘‘shall only be required to apply a conservation
plan established under this subtitle. The person shall not
be required to meet a higher conservation standard than
the standard applied to other highly erodible cropland lo-
cated within the same area. If the person’s conservation
plan requires structures to be constructed, the person
shall’’.
SEC. 356. INVESTIGATION OF POSSIBLE COMPLIANCE DEFI-
CIENCIES.
Subtitle B of title XII of the Food Security Act of
1985 is amended by adding at the end the following new
section:
‘‘SEC. 1215. NOTICE AND INVESTIGATION OF POSSIBLE
COMPLIANCE DEFICIENCIES.
‘‘(a) SPECIAL RULE DURING PROVISION OF ON-SITE
TECHNICAL ASSISTANCE.—Employees of the Department
of Agriculture who observe possible compliance defi-
ciencies or other potential violations of a conservation plan
or provision of this subtitle while providing on-site tech-
nical assistance shall provide to the responsible persons,
within 45 days, information regarding those actions need-
ed in order to come into compliance. The employees shall
provide this information in lieu of reporting the observa-
tions as compliance violations. The person shall attempt
115
to correct such deficiencies as soon as practicable. If such
corrective action is not fully implemented within 1 year,
a review of the status of compliance of the person with
the conservation plan may then be conducted.
‘‘(b) NOTICE OF POSSIBLE VIOLATIONS.—Any inter-
ested person (other than an employee of an agency of the
Department of Agriculture administering this Act) may
file, in accordance with rules prescribed by the Secretary,
a written complaint of possible compliance deficiencies or
other potential violations of a conservation plan or provi-
sion of this subtitle. The identity of any person filing a
complaint under this subsection shall be considered to be
confidential information. The identity of such person, and
any portion of the complaint to the extent that it would
indicate the identity of such person, are specifically ex-
empt from disclosure under section 552 of title 5, United
States Code (commonly known as the Freedom of Infor-
mation Act), as provided in subsection (b)(3) of such sec-
tion. The Secretary is not required to take action on com-
plaints or allegations that are anonymous or are not sub-
mitted in writing.
‘‘(c) INVESTIGATION OF COMPLAINTS.—
‘‘(1) COMMENCING OR EXPANDING AN INVES-
TIGATION.—If there appears to be, in the opinion of
the Secretary, reasonable grounds for investigating a
116
complaint or allegation made under subsection (b),
the Secretary may commence an investigation of the
alleged violation of a conservation plan or provision
of this subtitle specified in the complaint or allega-
tion. In the course of the investigation, if the Sec-
retary determines that violations are indicated other
than the alleged violations specified in the complaint
or allegation, the Secretary may expand the inves-
tigation to include such additional violations.
‘‘(2) ISSUANCE OF FORMAL COMPLAINT BY SEC-
RETARY; PROCESS.—In the opinion of the Secretary,
if an investigation under this subsection substan-
tiates the existence of violations of a conservation
plan or provision of this subtitle, the Secretary may
cause a formal complaint to be issued. The Sec-
retary shall have the complaint served by registered
mail or certified mail or otherwise on the person
concerned and afford such person an opportunity for
a hearing on the complaint.
‘‘(d) NOTIFICATION
REQUIREMENTS
REGARDING
SUBJECT OF COMPLAINT.—Whenever the Secretary initi-
ates an investigation on the basis of a complaint or allega-
tion made under subsection (b) or expands such an inves-
tigation, the Secretary shall promptly notify the subject
of the investigation of the existence of the investigation
119
‘‘(3) TEMPORARY EMPHASIS ON CERTAIN EN-
ROLLMENT
METHODS.—To achieve the enrollment
ratios specified in paragraph (2), the Secretary shall
endeavor, to the maximum extent practicable, to rely
on the enrollment methods described in subpara-
graphs (B) and (C) of paragraph (2) to enroll lands
in the wetlands reserve program until such time as
enrollments under each such subparagraph accounts
for approximately one-third of all lands enrolled in
the wetlands reserve.’’
(b) ELIGIBILITY.—Section 1237(c) of the Food Secu-
rity Act of 1985 (16 U.S.C. 3837(c)) is amended by strik-
ing ‘‘2000’’ and inserting ‘‘2002’’.
(c) EASEMENTS
AND RESTORATION COST-SHARE
AGREEMENTS.—Section 1237A of the Food Security Act
of 1985 (16 U.S.C. 3837a) is amended—
(1) in the section heading, by inserting before
the period at the end the following: ‘‘AND RES-
TORATION COST-SHARE AGREEMENTS’’;
(2) by striking subsection (c) and inserting the
following:
‘‘(c) RESTORATION PLANS.—The development of a
restoration plan, including any compatible use, under this
section shall be made through the local Natural Resources
Conservation Service representative.’’;
120
(3) in subsection (f), by striking the third sen-
tence and inserting the following: ‘‘Compensation
may be provided in not less than 5, nor more than
30, annual payments of equal or unequal size, as
agreed to by the owner and the Secretary.’’; and
(4) by adding at the end the following:
‘‘(h) RESTORATION COST SHARE AGREEMENTS.—
The Secretary may enroll land in the wetland reserve pro-
gram through agreements that require the landowner to
restore wetlands on the land, if the agreement does not
provide the Secretary with an easement. Other than cost
share and technical assistance provided under section
1237C(b), the Secretary may not provide compensation
for an agreement under this subsection.’’.
(d) COST SHARE AND TECHNICAL ASSISTANCE.—
Section 1237C of the Food Security Act of 1985 (16
U.S.C. 3837c) is amended by striking subsection (b) and
inserting the following:
‘‘(b) COST SHARE AND TECHNICAL ASSISTANCE.—
‘‘(1) EASEMENTS.—In the case of an easement
entered into during the 1996 through 2002 calendar
years, in making cost share payments under sub-
section (a)(1), the Secretary shall—
‘‘(A) in the case of a permanent easement,
pay the owner an amount that is not less than
121
75 percent, but not more than 100 percent, of
the eligible costs; and
‘‘(B) in the case of a 30-year easement,
pay the owner an amount that is not less than
50 percent, but not more than 75 percent, of
the eligible costs.
‘‘(2) 
RESTORATION
COST-SHARE
AGREE-
MENTS.—In making cost share payments in connec-
tion with a restoration cost-share agreement entered
into under section 1237(A)(h), the Secretary shall
pay the owner an amount that is not less than 50
percent, but not more than 75 percent, of the eligi-
ble costs.
‘‘(3) TECHNICAL ASSISTANCE.—The Secretary
shall provide owners with technical assistance to as-
sist owners in complying with the terms of ease-
ments and restoration cost-share agreements.’’.
SEC. 362. ELIMINATION OF CONSULTATION REQUIRE-
MENTS WITH SECRETARY OF THE INTERIOR.
Section 1242 of the Food Security Act of 1985 (16
U.S.C. 3842) is amended—
(1) by striking ‘‘(a)’’ before ‘‘In carrying out’’;
and
(2) by striking subsection (b).
122
SEC. 363. REPEAL OF ENVIRONMENTAL EASEMENT PRO-
GRAM.
(a) REPEAL.—Chapter 3 of subtitle D of title XII
of the Food Security Act of 1985 (16 U.S.C. 3839–3839d)
is repealed.
(b) CONFORMING AMENDMENTS.—(1) Such title is
further amended—
(A) in section 1211(3) (16 U.S.C. 3811(3)), by
striking subparagraph (E);
(B) in section 1243(f) (16 U.S.C. 3843(f))—
(i) in paragraph (1), by striking ‘‘and the
Environmental Easement Program under chap-
ter 3, and not more than 10 percent of such
cropland may be subject to an easement ac-
quired under those chapters’’; and
(ii) by striking paragraph (2).
(2) Subsection (c) of section 1437 of the Food, Agri-
culture, Conservation, and Trade Act of 1990 (Public Law
101–624; 16 U.S.C. 3831 note) is amended to read as
follows:
‘‘(c) EXTENSION AUTHORITY.—During the 1996
through 2000 calendar years, the Secretary of Agriculture
may extend up to 10 years contracts entered into before
November 28, 1990, under subchapter B of chapter 1 of
subtitle D of title XII of the Food Security Act of 1985
(16 U.S.C. 3831 et seq.) at the option of the owner or
123
operator on land that the Secretary has determined under
the study conducted under subsection (a) should remain
in conserving uses.’’.
SEC. 364. EFFECT OF AMENDMENTS ON EXISTING EASE-
MENTS.
The amendments made by sections 361 and 363 shall
not affect the validity or terms of any easements acquired
by the Secretary of Agriculture under subchapter C of
chapter 1 of subtitle D of title XII of the Food Security
Act of 1985 (16 U.S.C. 3837 et seq.) or under chapter
3 of such subtitle (16 U.S.C. 3839 et seq.) before the date
of the enactment of this Act or any payments required
to be made in connection with such easements.
SEC. 365. CONSERVATION RESERVE PROGRAM.
(a) PROGRAM EXTENSIONS.—
(1) ENVIRONMENTAL CONSERVATION ACREAGE
RESERVE PROGRAM.—Section 1230(a) of the Food
Security Act of 1985 (16 U.S.C. 3830(a)) is amend-
ed by striking ‘‘1995’’ and inserting ‘‘2002’’.
(2) CONSERVATION RESERVE PROGRAM.—Sec-
tion 1231 of the Act (16 U.S.C. 3831) is amended
in subsections (a) and (b)(3), by striking ‘‘1995’’
each place it appears and inserting ‘‘2002’’.
124
(3) DUTIES
OF
OWNERS
AND
OPERATORS.—
Section 1232(c) of the Act (16 U.S.C. 3832(c)) is
amended by striking ‘‘1995’’ and inserting ‘‘2002’’.
(b) MAXIMUM ENROLLMENT.—Section 1231(d) of
the Food Security Act of 1985 (16 U.S.C. 3831(d)) is
amended striking ‘‘total of’’ and all that follows through
the period at the end of the subsection and inserting ‘‘total
of 36,400,000 acres during the 1986 through 2002 cal-
endar years (including contracts extended by the Secretary
pursuant to section 1437(c) of the Food, Agriculture, Con-
servation, and Trade Act of 1990 (Public Law 101–624;
16 U.S.C. 3831 note).’’.
(c) OPTIONAL CONTRACT TERMINATION BY PRODUC-
ERS.—Section 1235 of the Food Security Act of 1985 (16
U.S.C. 3835) is amended by adding at the end the follow-
ing new subsection:
‘‘(e) TERMINATION BY OWNER OR OPERATOR.—
‘‘(1) NOTICE OF TERMINATION.—An owner or
operator of land subject to a contract entered into
under this subchapter may terminate the contract by
submitting to the Secretary written notice of the in-
tention of the owner or operator to terminate the
contract.
‘‘(2) APPROVAL
OF
NOTICE.—The Secretary
shall accept and approve of the termination of a con-
125
tract entered into under this subchapter if the Sec-
retary determines that the land subject to the con-
tract is not environmentally sensitive.
‘‘(3) EFFECTIVE DATE.—Subject to approval by
the Secretary under paragraph (2), the contract ter-
mination shall take effect 60 days after the date on
which the owner or operator submits the written no-
tice under paragraph (1).
‘‘(4) PRORATED RENTAL PAYMENT.—Except as
provided in paragraph (7), if a contract entered into
under this subchapter is terminated under this sub-
section before the end of the fiscal year for which a
rental payment is due, the Secretary shall provide a
prorated rental payment covering the portion of the
fiscal year during which the contract was in effect.
‘‘(5) RENEWED
ENROLLMENT.—The termi-
nation of a contract entered into under this sub-
chapter shall not affect the ability of the owner or
operator who requested the termination to submit a
subsequent bid to enroll the land that was subject to
the contract into the conservation reserve.
‘‘(6) CONSERVATION REQUIREMENTS.—If land
that was subject to a contract is returned to produc-
tion of an agricultural commodity, the conservation
requirements under subtitles B and C shall apply to
126
the use of the land to the extent that the require-
ments are similar to those requirements imposed on
other similar lands in the area, except that the re-
quirements may not be more onerous that the re-
quirements imposed on other lands.
‘‘(7) REPAYMENT OF COST SHARE.—A person
who terminates a contract entered into under this
subchapter within less than 3 years after entering
into the contract shall reimburse the Secretary for
any cost share assistance provided under the con-
tract.’’.
(d) USE OF UNEXPENDED FUNDS.—Section 1231 of
the Food Security Act of 1985 (16 U.S.C. 3831) is
amended by adding at the end the following new sub-
section:
‘‘(h) USE OF UNEXPENDED FUNDS FROM CONTRACT
TERMINATIONS.—If a contract entered into under this
section is terminated, voluntarily or otherwise, before the
expiration date specified in the contract, the Secretary
may use funds, already available to the Secretary to cover
payments under the contract, but unexpended as a result
of the contract termination, to enroll other eligible lands
in the conservation reserve established under this sub-
chapter.’’.
(e) FAIR MARKET VALUE RENTAL RATES.—
127
(1) IN GENERAL.—Section 1234(c) of the Food
Security Act of 1985 (16 U.S.C. 3834(c)) is amend-
ed by adding at the end the following new para-
graph:
‘‘(5) In the case of a contract covering land which
has not been previously enrolled in the conservation re-
serve, annual rental payments under the contract may not
exceed the average fair market rental rate for comparable
lands in the county in which the lands are located. This
paragraph shall not apply to the extension of an existing
contract.’’.
(2) 
APPLICATION
OF
AMENDMENT.—The
amendment made by paragraph (1) shall apply with
respect to contracts for the enrollment of lands in
the conservation reserve program under section 1231
of the Food Security Act of 1985 (16 U.S.C. 3831))
entered into after the date of the enactment of this
Act.
Subtitle E—Wetland Conservation
Reform
SEC. 371. RESTATEMENT OF PROGRAM INELIGIBILITY.
(a) PROGRAM INELIGIBILITY.—Section 1221 of the
Food Security Act of 1985 (16 U.S.C. 3821) is amend-
ed—
128
(1) by redesignating subsection (b) as sub-
section (d); and
(2) by striking the section heading and all that
follows through the end of subsection (a) and insert-
ing the following:
‘‘SEC. 1221. PROGRAM INELIGIBILITY.
‘‘(a) PERSONS COVERED.—This section shall apply
with respect to any person who is a party to a production
flexibility contract under the Agricultural Market Transi-
tion Act or who participates in an annual program under
title I of such Act after January 1, 1996.
‘‘(b) INELIGIBILITY.—Except as provided in this sub-
title and notwithstanding any other provision of law, any
person described in subsection (a) who produces during
the 1996 crop year or thereafter an agricultural commod-
ity on converted wetland, as determined by the Secretary,
shall be—
‘‘(1) in violation of this section; and
‘‘(2) ineligible for loans or payments in an
amount determined by the Secretary to be propor-
tionate to the severity of the violation.
‘‘(c) LOANS AND PAYMENTS.—If a person has been
determined to have committed a violation during a crop
year under subsection (b), the Secretary shall determine
129
which, and the amount, of the following loans and pay-
ments for which the person shall be ineligible:
‘‘(1) Any type of price support or payment
made available under the Agricultural Market Tran-
sition Act, the Commodity Credit Corporation Char-
ter Act (15 U.S.C. 714 et seq.), or any other Act.
‘‘(2) A farm storage facility loan made under
section 4(h) of the Commodity Credit Corporation
Charter Act (15 U.S.C. 714b(h)).
‘‘(3) A loan made, insured, or guaranteed under
the Consolidated Farm and Rural Development Act
(7 U.S.C. 1921 et seq.) or any other provision of law
administered by the Consolidated Farm Service
Agency, if the Secretary determines that the pro-
ceeds of the loan will be used for a purpose that will
contribute to conversion of a wetland (other than as
provided in this subtitle) to produce an agricultural
commodity.
‘‘(4) A payment under section 4 or 5 of the
Commodity Credit Corporation Charter Act (15
U.S.C. 714b and 714c) during the crop year for the
storage of an agricultural commodity acquired by
the Commodity Credit Corporation.
‘‘(5) During the crop year:
130
‘‘(A) A payment made pursuant to a con-
tract entered into under the Agricultural Con-
servation Assistance Program established under
section 312 of the Conservation Consolidation
and Regulatory Reform Act of 1996 or the
Water Quality Conservation Program estab-
lished under section 342 of such Act.
‘‘(B) A payment under section 401 or 402
of the Agricultural Credit Act of 1978 (16
U.S.C. 2201 and 2202).
‘‘(C) A payment under subtitle D.
‘‘(D) A payment, loan, or other assistance
under section 3 or 8 of the Watershed Protec-
tion and Flood Prevention Act (16 U.S.C. 1003
and 1006a).’’.
(b) CONFORMING AMENDMENTS.—(1) Subsection (d)
of such section (as redesignated by subsection (a)(1)) is
amended—
(A) by striking ‘‘Except’’ and inserting ‘‘WET-
LAND CONVERSION.—Except’’; and
(B) by striking ‘‘subsections (a) (1) through
(3)’’ and inserting ‘‘subsection (c)’’.
(2) Such section is further amended by adding at the
end the following new subsection:
131
‘‘(e) PRIOR LOANS.—This section shall not apply to
a loan described in subsection (c) made before December
23, 1985.’’.
SEC. 372. DELINEATION OF WETLANDS; EXEMPTIONS TO
PROGRAM INELIGIBILITY.
(a) DELINEATION OF WETLANDS.—Subsection (a) of
section 1222 of the Food Security Act of 1985 (16 U.S.C.
3822) is amended to read as follows:
‘‘(a) DELINEATION BY THE SECRETARY.—
‘‘(1) IN GENERAL.—Subject to subsection (b),
the Secretary shall delineate, determine, and certify
all wetlands located on subject land on a farm.
‘‘(2) WETLAND DELINEATION MAPS.—The Sec-
retary shall delineate wetlands on wetland delinea-
tion maps. On the request of an owner or operator,
the Secretary shall make a reasonable effort to make
an on-site wetland determination prior to delinea-
tion.
‘‘(3) CERTIFICATION.—On providing notice to
affected owners or operators, the Secretary shall—
‘‘(A) certify whether a map is sufficient for
the purpose of making a determination of ineli-
gibility for program benefits under section
1221; and
132
‘‘(B) provide an opportunity to appeal the
certification prior to the certification becoming
final.
‘‘(4) REVIEW OF MAPPING ON APPEAL.—In the
case of an appeal of the Secretary’s certification, the
Secretary shall review and certify the accuracy of
the mapping of all land subject to the appeal to en-
sure that the subject land has been accurately delin-
eated. Prior to rendering a decision on the appeal,
the Secretary shall conduct an on-site inspection of
the subject land on a farm.’’.
(b) REQUESTS FOR DELINEATION.—Such section is
further amended—
(1) by redesignating subsections (b) through (j)
as subsections (c) through (k), respectively; and
(2) by inserting after subsection (a) the follow-
ing new subsection:
‘‘(b) REQUESTS FOR DELINEATION.—
‘‘(1) IN GENERAL.—Any delineation or deter-
mination of the presence of wetland on subject land
on a farm made under this subtitle shall be valid
until such time as the owner or operator of the land
requests a new delineation or determination.
‘‘(2) CHANGE IN DELINEATION.—In the case of
a change in a delineation or determination, the Sec-
133
retary shall promptly notify the owner or operator of
the subject land on a farm that is affected by the
change.
‘‘(3) RELIANCE ON PRIOR DELINEATION.—Any
action taken with respect to subject land on a farm
by an owner or operator in reliance on a prior wet-
land delineation or determination by the Secretary
shall not be subject to a subsequent wetland delinea-
tion or determination by the Secretary.’’.
(c) EXEMPTIONS.—Subsection (c) of such section (as
redesignated by subsection (b)(1)) is amended to read as
follows:
‘‘(c) EXEMPTIONS.—No person shall become ineli-
gible under section 1221 for program loans or payments
under the following circumstances:
‘‘(1) As the result of the production of an agri-
cultural commodity on the following lands:
‘‘(A) A converted wetland if the conversion
of the wetland was commenced before December
23, 1985.
‘‘(B) Land that is a nontidal drainage or
irrigation ditch excavated in upland.
‘‘(C) Land that is an artificially irrigated
area that would revert to upland if the irriga-
tion ceased.
134
‘‘(D) Land that is an artificial lake or
pond created by excavating or diking land (that
is not a wetland) to collect and retain water
and that is used primarily for livestock water-
ing, fish production, irrigation, wildlife, fire
control, flood control, cranberry growing, or rice
production, or as a settling pond.
‘‘(E) A wetland that is temporarily or inci-
dentally created as a result of adjacent develop-
ment activity.
‘‘(F) Land that contains a wetland one
acre or less in size, as determined by the Sec-
retary. The Secretary shall make a reasonable
effort to make an on-site wetland inspection
whenever requested by an owner or operator re-
questing this exemption.
‘‘(2) For the conversion of the following:
‘‘(A) An artificial lake or pond created by
excavating or diking land that is not a wetland
to collect and retain water and that is used pri-
marily for livestock watering, fish production,
irrigation, wildlife, fire control, flood control,
cranberry growing, rice production, or as a set-
tling pond.
135
‘‘(B) A wetland that is temporarily or inci-
dentally created as a result of adjacent develop-
ment activity.
‘‘(C) A wetland previously identified as a
converted wetland (if the original conversion of
the wetland was commenced before December
23, 1985), but which returned to wetland status
after that date as a result of the lack of mainte-
nance of drainage, dikes, levees, or similar
structures or as a result of the lack of manage-
ment of the lands containing the wetland.
‘‘(D) A wetland that is one acre or less in
size, as determined by the Secretary. The Sec-
retary shall make a reasonable effort to make
an on-site wetland inspection whenever re-
quested by an owner or operator requesting this
exemption.’’.
(d) IDENTIFICATION OF MINIMAL EFFECT EXEMP-
TIONS.—Subsection (e) of such section (as redesignated
by subsection (b)(1)) is amended to read as follows:
‘‘(e) IDENTIFICATION OF MINIMAL EFFECT EXEMP-
TIONS.—For purposes of applying the minimal effect ex-
emption under subsection (g)(1), the Secretary shall iden-
tify by regulation categorical minimal effect exemptions on
a regional basis to assist persons in avoiding a violation
136
of the ineligibility provisions of section 1221. The Sec-
retary shall ensure that employees of the Department who
administer this subtitle receive appropriate training to
properly apply the minimal effect exemptions identified by
the Secretary.’’.
(e) MITIGATION EXEMPTIONS.—Subsection (g)(2) of
such section (as redesignated by subsection (b)(1)) is
amended—
(1) in the material preceding the subpara-
graphs, by striking ‘‘where such restoration’’ and in-
serting ‘‘through the enhancement of an existing
wetland, or through the creation of a new wetland,
and the restoration, enhancement, or creation’’;
(2) in subparagraph (A), by inserting ‘‘, en-
hancement, or creation’’ after ‘‘restoration’’;
(3) in subparagraph (D), by inserting ‘‘in the
case of enhancement or restoration of wetlands,’’
after ‘‘(D)’’;
(4) by redesignating subparagraphs (E) and
(F) as subparagraphs (F) and (G), respectively;
(5) by inserting after subparagraph (D) the fol-
lowing new subparagraph:
‘‘(E) in the case of creation of wetlands, on
greater than a one-for-one acreage basis if more
acreage is needed to provide equivalent func-
137
tions and values that will be lost as a result of
the wetland conversion that is mitigated;’’; and
(6) in subparagraph (G) (as so redesignated)—
(A) by striking ‘‘restored’’ each place it ap-
pears and inserting ‘‘restored, enhanced, or cre-
ated’’; and
(B) by striking ‘‘restoration’’ and inserting
‘‘restoration, enhancement, or creation’’.
(f) GOOD FAITH EXEMPTION.—Subsection (i) of
such section (as redesignated by subsection (b)(1)) is
amended to read as follows:
‘‘(i) GOOD FAITH EXEMPTION.—
‘‘(1) EXEMPTION DESCRIBED.—The Secretary
may waive a person’s ineligibility under section 1221
for program loans, payments, and benefits as the re-
sult of the conversion of a wetland subsequent to
November 28, 1990, or the production of an agricul-
tural commodity on a converted wetland subsequent
to January 1, 1996, if the Secretary determines that
the person has acted in good faith and without in-
tent to violate this subtitle.
‘‘(2) PERIOD FOR COMPLIANCE.—A person who
the Secretary determines has acted in good faith and
without intent to violate this subtitle shall be allowed
a period of one year during which to implement the
139
SEC. 373. REPEAL OF CONSULTATION REQUIREMENT WITH
SECRETARY OF THE INTERIOR.
Section 1223 of the Food Security Act of 1985 (16
U.S.C. 3823) is repealed.
SEC. 374. APPLICATION OF PROGRAM INELIGIBILITY TO
AFFILIATED PERSONS.
The Food Security Act of 1985 is amended by insert-
ing after section 1222 (16 U.S.C. 3822) the following new
section:
‘‘SEC. 1223. AFFILIATED PERSONS.
‘‘If a person is affected by a reduction in benefits
under section 1221 and the affected person is affiliated
with other persons for the purpose of receiving the bene-
fits, the benefits of each affiliated person shall be reduced
under section 1221 in proportion to the interest held by
the affiliated person.’’.
TITLE IV—AGRICULTURAL
TRADE
Subtitle A—Public Law 480 and
Related Law
SEC. 401. FOOD ASSISTANCE TO DEVELOPING COUNTRIES.
Section 3 of the Agricultural Trade Development and
Assistance Act of 1954 (7 U.S.C. 1691a) is amended to
read as follows:
‘‘SEC. 3. FOOD ASSISTANCE TO DEVELOPING COUNTRIES.
‘‘It is the sense of Congress that—
140
‘‘(1) the United States should maintain its role
of world leadership in promoting food security and
economic development in developing countries; and
‘‘(2) the President should encourage other ad-
vanced nations to consider appropriate levels of food
assistance to meet the legitimate needs of developing
countries.’’.
SEC. 402. TRADE AND DEVELOPMENT ASSISTANCE.
Section 101 of the Agricultural Trade Development
and Assistance Act of 1954 (7 U.S.C. 1701) is amended—
(1) by striking ‘‘developing countries’’ each
place it appears and inserting ‘‘developing countries
and private entities’’; and
(2) in subsection (b)—
(A) by striking ‘‘To carry out’’ and all that
follows through ‘‘section 2, the’’ and inserting
‘‘The’’; and
(B) by inserting ‘‘and entities’’ before the
period at the end.
SEC. 403. AGREEMENTS REGARDING ELIGIBLE COUNTRIES
AND PRIVATE ENTITIES.
Section 102 of the Agricultural Trade Development
and Assistance Act of 1954 (7 U.S.C. 1702) is amended
to read as follows:
141
‘‘SEC. 102. AGREEMENTS REGARDING ELIGIBLE COUNTRIES
AND PRIVATE ENTITIES.
‘‘(a) PRIORITY.—In selecting agreements to be en-
tered into under this title, the Secretary shall give priority
to agreements providing for the export of agricultural
commodities to developing countries that—
‘‘(1) have the demonstrated potential to become
commercial markets for competitively priced United
States agricultural commodities;
‘‘(2) are undertaking measures for economic de-
velopment purposes to improve food security and ag-
ricultural development, alleviate poverty, and pro-
mote broad-based equitable and sustainable develop-
ment; and
‘‘(3) demonstrate the greatest need for food.
‘‘(b) PRIVATE ENTITIES.—An agreement entered
into under this title with a private entity shall require such
security, or such other provisions as the Secretary deter-
mines necessary, to provide reasonable and adequate as-
surance of repayment of the financing extended to the pri-
vate entity.
‘‘(c) 
AGRICULTURAL
MARKET
DEVELOPMENT
PLAN.—
‘‘(1) IN GENERAL.—If there is in effect for a
country a market development plan approved by the
Secretary, for the purposes of the priority set forth
142
in subsection (a), the Secretary shall deem that
country to have the demonstrated potential to be-
come a commercial market for competitively priced
United States agricultural commodities. However,
not more than 50 percent of the agricultural com-
modities sold under this title during a fiscal year
shall be granted the priority because this deeming
rule applies.
‘‘(2) REQUIREMENTS.—To be approved by the
Secretary, the agricultural market development plan
shall—
‘‘(A) be submitted by a country or private
entity in conjunction with an agricultural trade
organization;
‘‘(B) describe a project or program, de-
signed with the cooperation of the agricultural
trade organization, for the development and ex-
pansion of United States agricultural commod-
ity markets in the appropriate developing coun-
try;
‘‘(C) use funds raised from the sale of ag-
ricultural commodities received under agree-
ments under section 101;
143
‘‘(D) be implemented and administered in
coordination with the agricultural trade organi-
zation; and
‘‘(E) contain additional requirements de-
termined necessary by the Secretary.
‘‘(3) AGRICULTURAL TRADE ORGANIZATION.—
For purposes of this subsection, the term ‘agricul-
tural trade organization’ means a United States ag-
ricultural trade organization that promotes the ex-
port and sale of United States agricultural commod-
ities and that does not stand to profit directly from
specific sales of agricultural commodities.’’.
SEC. 404. TERMS AND CONDITIONS OF SALES.
Section 103 of the Agricultural Trade Development
and Assistance Act of 1954 (7 U.S.C. 1703) is amended—
(1) in subsection (a)(2)(A)—
(A) by striking ‘‘a recipient country to
make’’ and
(B) by striking ‘‘such country’’ and insert-
ing ‘‘the appropriate country’’;
(2) in subsection (c), by striking ‘‘less than 10
nor’’; and
(3) in subsection (d)—
(A) by striking ‘‘recipient country’’ and in-
serting ‘‘recipient’’; and
144
(B) by striking ‘‘7 years’’ and inserting ‘‘5
years’’.
SEC. 405. USE OF LOCAL CURRENCY.
Section 104 of the Agricultural Trade Development
and Assistance Act of 1954 (7 U.S.C. 1704) is amended—
(1) in subsection (a), by striking ‘‘recipient
country’’ and inserting ‘‘recipient’’; and
(2) in subsection (c)—
(A) by striking ‘‘recipient country’’ and in-
serting ‘‘appropriate developing country’’ each
place it appears; and
(B) by striking ‘‘recipient countries’’ and
inserting ‘‘appropriate developing countries’’.
SEC. 406. PROVISION OF AGRICULTURAL COMMODITIES.
Section 202(e) of the Agricultural Trade Develop-
ment and Assistance Act of 1954 (7 U.S.C. 1722(e)) is
amended—
(1) in the subsection heading, by inserting
‘‘INTERGOVERNMENTAL
ORGANIZATIONS,’’ 
after
‘‘SUPPORT FOR’’;
(2) in paragraph (1)—
(A) by striking ‘‘$13,500,000’’ and insert-
ing ‘‘$28,000,000’’; and
(B) by striking ‘‘private voluntary organi-
zations and cooperatives to assist such organi-
145
zations and cooperatives’’ and inserting ‘‘eligi-
ble organizations described in subsection (d), to
assist those organizations’’; and
(3) in paragraphs (2) and (3), by striking ‘‘a
private’’ each place it appears and inserting ‘‘an
intergovernmental organization, private’’.
SEC. 407. EFFECTIVE USE OF COMMODITIES.
Section 202(f) of the Agricultural Trade Develop-
ment and Assistance Act of 1954 (7 U.S.C. 1722(f)) is
amended—
(1) by striking the period at the end of para-
graph (6) and inserting ‘‘; and’’; and
(2) by adding at the end the following:
‘‘(7) be permitted to carry out a program under
this title—
‘‘(A) in a foreign country in which the
Agency for International Development does not
have a mission, office, or other presence; or
‘‘(B) that is not part of the developmental
strategy prepared by such Agency for the coun-
try in which the program is carried out.’’
SEC. 408. MONETIZATION.
Section 203 of the Agricultural Trade Development
and Assistance Act of 1954 (7 U.S.C. 1723) is amended—
146
(1) in subsection (a), by inserting ‘‘, or in a
country in the same region’’ after ‘‘in the recipient
country’’;
(2) in subsection (b)—
(A) by inserting ‘‘or in countries in the
same region’’ after ‘‘in the recipient country’’;
and
(B) by striking ‘‘10 percent’’ and inserting
‘‘15 percent’’; and
(3) in subsection (c), by inserting ‘‘of within a
country in the same region’’ after ‘‘within the recipi-
ent country’’.
SEC. 409. GENERAL LEVELS OF ASSISTANCE UNDER PUB-
LIC LAW 480.
Section 204(a) of the Agricultural Trade Develop-
ment and Assistance Act of 1954 (7 U.S.C. 1724(a)) is
amended—
(1) in paragraph (1), by striking ‘‘amount
that’’ and all that follows through the period at the
end and inserting ‘‘amount that for each of fiscal
years 1996 through 2002 is not less than 2,025,000
metric tons.’’; and
(2) in paragraph (2), by striking ‘‘amount
that’’ and all that follows through the period at the
end and inserting ‘‘amount that for each of fiscal
147
years 1996 through 2002 is not less than 1,550,000
metric tons.’’.
SEC. 410. USE OF VALUE ADDED COMMODITIES.
Section 204(b)(1) of the Agricultural Trade Develop-
ment and Assistance Act of 1954 (7 U.S.C. 1724(e)) is
amended by inserting ‘‘and that not less than 50 percent
of the quantity of such bagged commodities that are whole
grain commodities shall be bagged in the United States’’
before the period at the end.
SEC. 411. FOOD AID CONSULTATION GROUP.
(a) MEMBERSHIP.—Section 205(b)(2) of the Agricul-
tural Trade Development and Assistance Act of 1954 (7
U.S.C. 1725(b)(2)) is amended by striking ‘‘International
Affairs and Commodity Programs’’ and inserting ‘‘Agri-
culture for Farm and Foreign Agricultural Services’’.
(b) EXPIRATION DATE.—Section 205(f) of the Agri-
cultural Trade Development and Assistance Act of 1954
(7 U.S.C. 1725(f)) is amended by striking ‘‘1995’’ and
inserting ‘‘2002’’.
SEC. 412. FOOD FOR DEVELOPMENT.
Sections 301(b) and 303 of the Agricultural Trade
Development and Assistance Act of 1954 (7 U.S.C.
1727(b) and 1727b) are each amended by striking ‘‘To
carry out’’ and all that follows through ‘‘section 2, the’’
and inserting ‘‘The’’.
148
SEC. 413. COMMODITY DETERMINATIONS.
Section 401 of the Agricultural Trade Development
and Assistance Act of 1954 (7 U.S.C. 1731) is amended—
(1) by striking subsections (a) through (d) and
inserting the following:
‘‘(a) AVAILABILITY OF COMMODITIES.—No agricul-
tural commodity shall be available for disposition under
this Act if the Secretary determines that the disposition
would reduce the domestic supply of the commodity below
the supply needed to meet domestic requirements and pro-
vide adequate carryover (as determined by the Secretary),
unless the Secretary determines that some part of the sup-
ply should be used to carry out urgent humanitarian pur-
poses under this Act.’’;
(2) by redesignating subsections (e) and (f) as
subsections (b) and (c), respectively; and
(3) in subsection (c) (as so redesignated), by
striking ‘‘(e)(1)’’ and inserting ‘‘(b)(1)’’.
SEC. 414. GENERAL PROVISIONS.
Section 403 of the Agricultural Trade Development
and Assistance Act of 1954 (7 U.S.C. 1733) is amended—
(1) in subsection (c)—
(A) by inserting ‘‘or private entities, as ap-
propriate,’’ after ‘‘commitments from coun-
tries’’; and
149
(B) by striking ‘‘for use’’ and inserting ‘‘or
use’’; and
(2) in subsection (f), by inserting ‘‘or private
entities as appropriate,’’ after ‘‘from countries’’.
SEC. 415. AGREEMENTS.
Section 404 of the Agricultural Trade Development
and Assistance Act of 1954 (7 U.S.C. 1734) is amended—
(1) in subsection (a), by inserting ‘‘with foreign
countries’’ after ‘‘Before entering into agreements’’;
(2) in subsection (b)(2)—
(A) by inserting ‘‘with foreign countries’’
after ‘‘with respect to agreements entered into’’;
and
(B) by inserting before the semicolon at
the end the following: ‘‘and broad-based eco-
nomic growth’’; and
(3) so that subsection (c)(1) reads as follows:
‘‘(1) IN GENERAL.—
‘‘(A) TITLES
I
AND
III.—Agreements to
provide assistance on a multi-year basis under
titles I and III may be made available to recipi-
ent countries or to eligible organizations.
‘‘(B) TITLE II.—Agreements to provide as-
sistance on a multi-year basis shall be made
150
available to recipient countries and to eligible
organizations.’’.
SEC. 416. ADMINISTRATIVE PROVISIONS.
Section 407 of the Agricultural Trade Development
and Assistance Act of 1954 (7 U.S.C. 1736a) is amend-
ed—
(1) in subsection (a)(1), by inserting ‘‘or pri-
vate entity’’ after ‘‘importing country’’;
(2) in subsection (c)—
(A) in paragraph (1)(A), by inserting ‘‘im-
porter or’’ before ‘‘importing country’’; and
(B) in paragraph (2)(A), by inserting ‘‘im-
porter or’’ before ‘‘importing country’’; and
(3) by striking subsection (h).
SEC. 417. EXPIRATION DATE.
Section 408 of the Agricultural Trade Development
and Assistance Act of 1954 (7 U.S.C. 1736b) is amended
by striking ‘‘1995’’ and inserting ‘‘2002’’.
SEC. 418. REPEAL OF SECTIONS 409 AND 410.
Sections 409 and 410 of the Agricultural Trade De-
velopment and Assistance Act of 1954 (7 U.S.C. 1736c
and 1736d) are repealed.
151
SEC. 419. USE OF LOCAL CURRENCY IN TITLE V.
Section 501(a)(6) of the Agricultural Trade Develop-
ment and Assistance Act of 1954 (7 U.S.C. 1737(a)(6))
is amended—
(1) by striking ‘‘practicable’’, and all that fol-
lows through ‘‘under this section’’ and inserting
‘‘that local currencies can be used to meet the costs
of a program established under this section, aug-
ment funds of the United States that are available
for such a program’’; and
(2) by inserting ‘‘, within the country where the
program is conducted’’ before the period at the end.
SEC. 420. TITLE V FUNDING LEVEL.
Section 501(c) of the Agricultural Trade Develop-
ment and Assistance Act of 1954 (7 U.S.C. 1737(c)) is
amended—
(1) by striking ‘‘0.2’’ and inserting ‘‘0.4’’; and
(2) by striking ‘‘1991 through 1995’’ and in-
serting ‘‘1996 through 2002’’.
SEC. 421 FOOD FOR PROGRESS.
Section 1110 of the Food Security Act of 1985 (7
U.S.C. 1736o) is amended—
(1) in the first sentence of subsection (b)(1), by
inserting ‘‘intergovernmental organizations,’’ after
‘‘private voluntary organizations,’’;
152
(2) in subsection (g), by striking ‘‘1995’’ and
inserting ‘‘2002’’;
(3) in subsection (k), by striking ‘‘1995’’ and
inserting ‘‘2002’’;
(4) in subsection (l)(1)—
(A) by striking ‘‘1995’’ and inserting
‘‘2002’’; and
(B) in inserting ‘‘, and to provide adminis-
trative and technical assistance for monetiza-
tion programs,’’ after ‘‘monitoring of food as-
sistance programs’’; and
(5) in subsection (m)—
(A) by striking ‘‘with respect to the inde-
pendent states of the former Soviet Union’’;
and
(B) in paragraph (2), by striking ‘‘in the
independent states’’.
SEC. 422. FOOD SECURITY COMMODITY RESERVE.
(a) FOOD SECURITY COMMODITY RESERVE ACT OF
1995.—The title heading of title III of the Agricultural
Act of 1980 (7 U.S.C. 1736f–1 note) is amended by strik-
ing ‘‘FOOD SECURITY WHEAT RESERVE ACT OF 1980’’
and inserting ‘‘FOOD
SECURITY
COMMODITY
RE-
SERVE ACT OF 1995’’.
153
(b) SHORT TITLE.—Section 301 of the Act (7 U.S.C.
1736f–1 note) is amended by striking ‘‘Food Security
Wheat Reserve Act of 1980’’ and inserting ‘‘Food Security
Commodity Reserve Act of 1995’’.
(c) IN GENERAL.—Section 302 of the Act (7 U.S.C.
1736f–1) is amended—
(1) in the section heading, by striking ‘‘FOOD
SECURITY
WHEAT
RESERVE’’ and inserting
‘‘FOOD SECURITY COMMODITY RESERVE’’;
(2) so that subsection (a) reads as follows:
‘‘(a) IN GENERAL.—To provide for a reserve solely
to meet emergency humanitarian food needs in developing
countries, the Secretary shall establish a reserve stock of
wheat, rice, corn, or sorghum, or any combination of the
commodities, totaling not more than 4,000,000 metric
tons for use as described in subsection (c).’’;
(3) so that subsection (b)(1) reads as follows:
‘‘(b) COMMODITIES IN RESERVE.—
‘‘(1) IN
GENERAL.—The reserve established
under this section shall consist of—
‘‘(A) wheat in the reserve established
under the Food Security Commodity Reserve
Act of 1980 as of the date of enactment of the
Food For Peace Reauthorization Act of 1995;
154
‘‘(B) wheat, rice, corn, and sorghum (re-
ferred to in this section as ‘eligible commod-
ities’) acquired in accordance with paragraph
(2) to replenish eligible commodities released
from the reserve, including wheat to replenish
wheat released from the reserve established
under the Food Security Wheat Reserve Act of
1980 but not replenished as of the date of en-
actment of the Food For Peace Reauthorization
Act of 1995; and
‘‘(C) such rich, corn, and sorghum as the
Secretary of Agriculture (referred to in this sec-
tion as the ‘Secretary’) may, at such time and
in such manner as the Secretary determines ap-
propriate, acquire as a result of exchanging an
equivalent value of wheat in the reserve estab-
lished under this section.’’;
(4) in subsection (b)(2)—
(A) by striking ‘‘(2)(A) Subject to’’ and in-
serting the following:
‘‘(2) REPLENISHMENT OF RESERVE.—
‘‘(A) IN GENERAL.—Subject to’’;
(B) in subparagraph (A)—
155
(i) by striking ‘‘(i) of this section
stocks of wheat’’ and inserting ‘‘(i) stocks
of eligible commodities’’;
(ii) in clause (ii), by striking ‘‘stocks
of wheat’’ and inserting ‘‘stocks of eligible
commodities’’; and
(iii) in the second sentence, by strik-
ing ‘‘wheat’’ and inserting ‘‘eligible com-
modities’’; and
(C) in subparagraph (B)—
(i) by striking ‘‘(B) Not later’’ and in-
serting ‘‘(B) TIME FOR REPLENISHMENT
OF RESERVE.—Not later’’; and
(ii) in clause (ii), by striking ‘‘wheat’’
and inserting ‘‘eligible commodities’’;
(5) so that subsections (c) through (f) read as
follows:
‘‘(c) RELEASE OF ELIGIBLE COMMODITIES.—
‘‘(1) DETERMINATION.—If the Secretary deter-
mines that the amount of commodities allocated for
minimum assistance under section 204(a)(1) of the
Agricultural Trade Development and Assistance Act
of 1954 (7 U.S.C. 1724(a)(1)) less the amount of
commodities allocated for minimum non-emergency
assistance under section 204(a)(2) of the Act (7
156
U.S.C. 1724(a)(2)) will be insufficient to meet the
need for commodities for emergency assistance
under section 202(a) of the Act (7 U.S.C. 1722(a)),
the Secretary in any fiscal year may release from the
reserve—
‘‘(A) up to 500,000 metric tons of wheat
or the equivalent value of eligible commodities
other than wheat; and
‘‘(B) any eligible commodities which under
subparagraph (A) could have been released but
were not released in prior fiscal years.
‘‘(2) AVAILABILITY
OF
COMMODITIES.—Com-
modities released under paragraph (1) shall be made
available under title II of the Agricultural Trade De-
velopment and Assistance Act of 1954 (7 U.S.C.
1721 et seq.) for emergency assistance.
‘‘(3) EXCHANGE.—The Secretary may exchange
an eligible commodity for another United States
commodity of equal value, including powdered milk,
pulses, and vegetable oil.
‘‘(4) USE
OF
NORMAL
COMMERCIAL
PRAC-
TICES.—To the maximum extent practicable consist-
ent with the fulfillment of the purposes of this sec-
tion and the effective and efficient administration of
this section, the Secretary shall use the usual and
157
customary channels, facilities, arrangements, and
practices of the trade and commerce.
‘‘(5) WAIVER OF MINIMUM TONNAGE REQUIRE-
MENTS.—Nothing in this subsection shall require
the exercise of the waiver under section 204(a)(3) of
the Agricultural Trade Development and Assistance
Act of 1954 (7 U.S.C. 1724(a)(3)) as a prerequisite
for the release of eligible commodities under this
subsection.
‘‘(d) TRANSPORTATION AND HANDLING COSTS.—
‘‘(1) IN GENERAL.—The cost of transportation
and handling of eligible commodities released from
the reserve established under this section shall be
paid by the Commodity Credit Corporation in ac-
cordance with section 406 of the Agricultural Trade
Development and Assistance Act of 1954 (7 U.S.C.
1736).
‘‘(2) REIMBURSEMENT.—
‘‘(A) IN GENERAL.—The Commodity Cred-
it Corporation shall be reimbursed for the costs
incurred under paragraph (1) from the funds
made available to carry out the Agricultural
Trade Development and Assistance Act of 1954
(7 U.S.C. 1691 et seq.).
158
‘‘(B) BASIS
FOR
REIMBURSEMENT.—The
reimbursement shall be made on the basis of
the lesser of the actual cost incurred by the
Commodity Credit Corporation less any savings
achieved as a result of decreased storage and
handling costs for the reserve. Such reimburse-
ment may be made from funds appropriated for
that purpose in subsequent years.
‘‘(C) DECREASED
STORAGE
AND
HAN-
DLING COSTS.—For purposes of this subsection,
‘decreased storage and handling costs’ shall
mean the total actual costs for storage and han-
dling incurred by the Commodity Credit Cor-
poration for the reserve established under title
III of the Agricultural Act of 1980 in fiscal
year 1995 less the total actual costs for storage
and handling incurred by the Corporation for
the reserve established under this Act for the
fiscal year for which the savings are calculated.
‘‘(e) MANAGEMENT
OF RESERVE.—The Secretary
shall provide for—
‘‘(1) the management of eligible commodities in
the reserve as to location and quality of commodities
needed to meet emergency situations; and
159
‘‘(2) the periodic rotation of eligible commod-
ities in the reserve to avoid spoilage and deteriora-
tion of such stocks.
‘‘(f) TREATMENT
OF
RESERVE
UNDER
OTHER
LAW.—Eligible commodities in the reserve established
under this section shall not be—
‘‘(1) considered a part of the total domestic
supply (including carryover) for the purpose of ad-
ministering the Agricultural Trade Development and
Assistance Act of 1954 (7 U.S.C. 1691 et seq.); and
‘‘(2) subject to any quantitative limitation on
exports that may be imposed under section 7 of the
Export Administration Act of 1979 (50 U.S.C. App.
2406).’’;
(6) in subsection (g)—
(A) by striking ‘‘(g)(1) The’’ and inserting
the following:
‘‘(g) USE OF COMMODITY CREDIT CORPORATION.—
The’’;
(B) by striking ‘‘wheat’’ and inserting ‘‘an
eligible commodity’’; and
(C) by striking paragraph (2);
(7) in subsection (h)—
(A) by striking ‘‘(h) Any’’ and inserting:
‘‘(h) FINALITY OF DETERMINATION.—Any’’; and
160
(B) by striking ‘‘President or the Secretary
of Agriculture’’ and inserting ‘‘Secretary’’; and
(8) in subsection (i)—
(A) by striking ‘‘(i) The’’ and inserting:
‘‘(i) TERMINATION OF AUTHORITY.—The’’;
(B) by striking ‘‘wheat’’ each place it ap-
pears and inserting ‘‘eligible commodities’’; and
(C) by striking ‘‘1995’’ each place it ap-
pears and inserting ‘‘2002’’.
(d) EFFECTIVE DATE.—Section 303 of the Act (7
U.S.C. 1736–1 note) is amended by striking ‘‘October 1,
1980’’ and all that follows through the end of the section
and inserting ‘‘on the date of enactment of this Act.’’.
(e) CONFORMING AMENDMENT.—Section 208(d)(2)
of the Agriculture Trade Suspension Adjustment Act of
1980 (7 U.S.C. 4001(d)(2)) is amended to read as follows:
‘‘(2) 
APPLICABILITY
OF
CERTAIN
PROVI-
SIONS.—Subsections (b)(2), (c), (e), and (f) of sec-
tion 302 of the Food Security Commodity Reserve
Act of 1995 shall apply to commodities in any re-
serve established under paragraph (1), except that
the references to ‘eligible commodities’ in the sub-
sections shall be deemed to be references to ‘agricul-
tural commodities’.’’.
161
Subtitle B—Agricultural Trade Act
of 1978
SEC. 431. AGRICULTURAL EXPORT PROMOTION STRATEGY.
(a) GENERALLY.—Section 103 of the Agricultural
Trade Act of 1978 (7 U.S.C. 5603) is amended to read
as follows:
‘‘SEC. 103. AGRICULTURAL EXPORT PROMOTION STRATEGY.
‘‘The Secretary shall periodically prepare an agricul-
tural trade strategy report on the agricultural trade strat-
egy developed by the Secretary to implement the programs
designed to promote the export of United States agricul-
tural commodities. The Secretary shall submit such report
to the Committee on Agriculture and the Committee on
Ways and Means of the House of Representatives and the
Committee on Agriculture, Nutrition, and Forestry and
the Committee on Finance of the Senate.’’.
(b) ELIMINATION OF REPORT.—
(1) IN GENERAL.—Section 601 of the Act (7
U.S.C. 5711) is repealed.
(2) CONFORMING AMENDMENT.—The last sen-
tence of section 603 of the Act (7 U.S.C. 5713) is
amended by striking ‘‘, in a consolidated report,’’
and all that follows through ‘‘section 601’’ and in-
serting ‘‘or in a consolidated report’’.
162
SEC. 432. EXPORT CREDITS.
(a) EXPORT CREDIT GUARANTEE PROGRAM.—Sec-
tion 202 of the Agricultural Trade Act of 1978 (7 U.S.C.
5622) is amended—
(1) in subsection (f)—
(A) by striking ‘‘(f) RESTRICTIONS.—The’’
and inserting the following:
‘‘(f) RESTRICTIONS.—
‘‘(1) IN GENERAL.—The’’; and
(B) by adding at the end the following:
‘‘(2) CRITERIA FOR DETERMINATION.—In mak-
ing the determination required under paragraph (1)
with respect to credit guarantees under subsection
(b) for a country, the Secretary may consider, in ad-
dition to financial, macroeconomic, and monetary in-
dicators—
‘‘(A) whether an International Monetary
Fund standby agreement, Paris Club reschedul-
ing plan, or other economic restructuring plan
is in place with respect to the country;
‘‘(B) the convertibility of the currency of
the country;
‘‘(C) whether the country provides ade-
quate legal protection for foreign investments;
‘‘(D) whether the country has viable finan-
cial markets;
163
‘‘(E) whether the country provides ade-
quate legal protection for the private property
rights of citizens of the country; and
‘‘(F) any other factors that are relevant to
the ability of the country to service the debt of
the country.’’;
(2) in subsection (h)—
(A) by striking ‘‘(h) FOREIGN AGRICUL-
TURAL COMPONENTS’’ and inserting ‘‘(h) UNIT-
ED
STATES
AGRICULTURAL
COMMODITIES’’;
and
(B) by striking the final sentence;
(3) in subsection (i)—
(A) by striking ‘‘INSTITUTIONS.—A finan-
cial’’ and inserting the following: ‘‘INSTITU-
TIONS.—
‘‘(1) IN GENERAL.—A financial’’;
(B) by striking paragraph (1);
(C) by striking ‘‘(2) is’’ and inserting the
following:
‘‘(A) is’’;
(D) by striking ‘‘(3) is’’ and inserting the
following:
‘‘(B) is’’; and
(E) by adding at the end the following:
164
‘‘(2) THIRD COUNTRY BANKS.—The Commodity
Credit Corporation may guarantee under subsections
(a) and (b) the repayment of credit made available
to finance an export sale irrespective of whether the
obligor is located in the country to which the export
sale is destined.’’; and
(4) by striking subsection (k).
(b) HIGH VALUE AND VALUE-ADDED PRODUCTS.—
Title I of the Act (7 U.S.C. 5601 et seq.) is amended by
adding at the end the following:
‘‘SEC. 106. HIGH VALUE AND VALUE-ADDED PRODUCTS.
‘‘For the purpose of discouraging unfair trade prac-
tices, in any trade and export programs operated by the
Secretary or the Commodity Credit Corporation, the Sec-
retary shall establish as an objective to expend annually
at least 25 percent of the total funds available (or 25 per-
cent of the value of any commodities employed) for pro-
gram activities involving the export sales of high value ag-
ricultural commodities and value-added products of United
States agricultural commodities.’’.
(c) FUNDING LEVELS.—Section 211(b) of the Act (7
U.S.C. 5641(b)) is amended—
(1) by striking paragraph (2);
(2) by redesignating subparagraph (B) of para-
graph (1) as paragraph (2) and indenting the mar-
165
gin of paragraph (2) (as so redesignated) so as to
align with the margin of paragraph (1); and
(3) by striking paragraph (1) and inserting the
following:
‘‘(1) 
EXPORT
CREDIT
GUARANTEES.—The
Commodity Credit Corporation shall make available
for each of fiscal years 1996 through 2002 not less
than $5,500,000,000 in credit guarantees under
subsections (a) and (b) of section 202.’’.
(d) DEFINITIONS.—Section 102(7) of the Act (7
U.S.C. 5602(7)) is amended by striking subparagraphs
(A) and (B) and inserting the following:
‘‘(A) an agricultural commodity or product
entirely produced in the United States; or
‘‘(B) a product of an agricultural commod-
ity—
‘‘(i) 90 percent or more of the agricul-
tural components of which by weight, ex-
cluding packaging and added water, is en-
tirely produced in the United States; and
‘‘(ii) that the Secretary determines to
be a United States high value or value-
added agricultural product.’’.
166
SEC. 433. REGULATIONS.
Section 404 of the Agricultural Trade Act of 1978
(7 U.S.C. 5664) is repealed.
SEC. 434. AGRICULTURAL EMBARGO PROTECTION.
Section 411 of the Agricultural Trade Act of 1978
(7 U.S.C. 5671) is amended—
(1) by striking subsections (a) and (b) and in-
serting the following:
‘‘(a) IN GENERAL.—Notwithstanding any other pro-
vision of law, if the President or other member of the exec-
utive branch of the Federal Government causes the export
of any agricultural commodity to any country or area of
the world to be suspended or restricted for reasons of na-
tional security, foreign policy, or limited domestic supply
under the Export Administration Act of 1979 (50 U.S.C.
App. 2401 et seq.) or under any other provision of law,
the Secretary shall compensate producers of the commod-
ity involved by making payments available to the produc-
ers, as provided in subsection (b).
‘‘(b) AMOUNT OF PAYMENT.—If the Secretary makes
payments available to producers under subsection (a), the
amount of the payment shall be determined by the Sec-
retary based on the Secretary’s estimate of the loss suf-
fered by the producer of the commodity involved due to
the decrease in price of the commodity as a result of the
suspension or restriction of exports.’’; and
167
(2) by adding at the end the following:
‘‘(f) DEFINITION.—As used in this section, the term
‘agricultural commodity’ includes plant nutrient fertilizer
materials and any raw materials used to produce plant nu-
trient fertilizer materials, as classified in the Harmonized
Trade Schedule of the United States (19 U.S.C. 1202, 19
U.S.C. 3001 et seq.).’’.
SEC. 435. FOREIGN AGRICULTURAL SERVICE.
Section 503 of the Agricultural Trade Act of 1978
(7 U.S.C. 5693) is amended to read as follows:
‘‘SEC. 503. ESTABLISHMENT OF THE FOREIGN AGRICUL-
TURAL SERVICE.
‘‘The Service shall assist the Secretary in carrying
out the agricultural trade policy and international co-
operation policy of the United States by—
‘‘(1) acquiring information pertaining to agri-
cultural trade;
‘‘(2) carrying out market promotion and devel-
opment activities;
‘‘(3) providing agricultural technical assistance
and training; and
‘‘(4) carrying out the programs authorized
under this Act, the Agricultural Trade Development
and Assistance Act of 1954 (7 U.S.C. 1691 et seq.),
and other Acts.’’.
168
Subtitle C—Miscellaneous
SEC. 441. TRIGGERED EXPORT ENHANCEMENT.
(a) READJUSTMENT OF SUPPORT LEVELS.—Section
1302 of the Omnibus Budget Reconciliation Act of 1990
(Public Law 101–508; 7 U.S.C. 1421 note) is repealed.
(b) TRIGGERED MARKETING LOANS AND EXPORT
ENHANCEMENT.—Section 4301 of the Omnibus Trade
and Competitiveness Act of 1988 (Public Law 100–418;
7 U.S.C. 1446 note) is repealed.
(c) EFFECTIVE DATE.—The amendments made by
this section shall be effective beginning with the 1996
crops of wheat, feed grains, upland cotton, and rice.
SEC. 442. POLICY ON EXPANSION OF INTERNATIONAL MAR-
KETS.
Section 1207 of the Agriculture and Food Act of
1981 (7 U.S.C. 1736m) is repealed.
SEC. 443. POLICY ON MAINTENANCE AND DEVELOPMENT
OF EXPORT MARKETS.
Sections 1121, 1122, and 1123 of the Food Security
Act of 1985 (7 U.S.C. 1736p) are repealed.
SEC. 444. POLICY ON UNFAIR TRADE PRACTICES.
Section 1164 of the Food Security Act of 1985 (Pub-
lic Law 99–198; 99 Stat. 1499) is repealed.
169
SEC. 445. AGRICULTURAL AID AND TRADE MISSIONS.
(a) IN GENERAL.—The Agricultural Aid and Trade
Missions Act (7 U.S.C. 1736bb et seq.) is repealed.
(b) CONFORMING AMENDMENT.—Section 7 of Public
Law 100–277 (7 U.S.C. 1736bb note) is repealed.
SEC. 446. ANNUAL REPORTS BY AGRICULTURAL ATTACHES.
Section 108(b)(1)(B) of the Agricultural Act of 1954
(7 U.S.C. 1748(b)(1)(B)) is amended by striking ‘‘includ-
ing fruits, vegetables, legumes, popcorn, and ducks’’.
SEC. 447. ORDERLY LIQUIDATION OF STOCKS.
Sections 201 and 207 of the Agricultural Act of 1956
(7 U.S.C. 1851 and 1857) are repealed.
SEC. 448. REGULATIONS.
Section 707 of the Freedom for Russia and Emerging
Eurasian Democracies and Open Markets Support Act of
1992 (Public Law 102–511; 7 U.S.C. 5621 note) is
amended by striking subsection (d).
SEC. 449. EMERGING MARKETS.
(a) PROMOTION
OF AGRICULTURAL EXPORTS
TO
EMERGING MARKETS.—
(1) EMERGING MARKETS.—Section 1542 of the
Food, Agriculture, Conservation, and Trade Act of
1990 (Public Law 101–624; 7 U.S.C. 5622 note) is
amended—
170
(A) in the section heading, by striking
‘‘EMERGING
DEMOCRACIES’’ and inserting
‘‘EMERGING MARKETS’’;
(B) by striking ‘‘emerging democracies’’
each place it appears in subsections (b), (d),
and (e) and inserting ‘‘emerging markets’’;
(C) by striking ‘‘emerging democracy’’
each place it appears in subsection (c) and in-
serting ‘‘emerging market’’; and
(D) by striking subsection (f) and inserting
the following:
‘‘(f) EMERGING MARKET.—In this section and sec-
tion 1543, term ‘emerging market’ means any country
that the Secretary determines—
‘‘(1) is taking steps toward a market-oriented
economy through the food, agriculture, or rural busi-
ness sectors of the economy of the country; and
‘‘(2) has the potential to provide a viable and
significant market for United States agricultural
commodities or products of United States agricul-
tural commodities.’’.
(2) FUNDING.—Section 1542 of the Act is
amended by striking subsection (a) and inserting the
following:
171
‘‘(a) FUNDING.—The Commodity Credit Corporation
shall make available for fiscal years 1996 through 2002
not less than $1,000,000,000 of direct credits or export
credit guarantees for exports to emerging markets under
section 201 or 202 of the Agricultural Trade Act of 1978
(7 U.S.C. 5621 and 5622), in addition to the amounts
required or authorized under section 211 of the Act (7
U.S.C. 5641) for the program.’’.
(3) AGRICULTURAL FELLOWSHIP PROGRAM.—
Section 1542 of the Act is amended—
(A) in subsection (b), by striking the last
sentence and inserting the following: ‘‘The
Commodity Credit Corporation shall give prior-
ity under this subsection to—
‘‘(A) projects that encourage the privatization
of the agricultural sector or that benefit private
farms or cooperatives in emerging markets; and
‘‘(B) projects for which nongovernmental per-
sons agree to assume a relatively larger share of the
costs.’’; and
(B) in subsection (d)—
(i) in the matter preceding paragraph
(1), by striking ‘‘the Soviet Union’’ and in-
serting ‘‘emerging markets’’;
(ii) in paragraph (1)—
172
(I) in subparagraph (A)(i)—
(aa) by striking ‘‘1995’’ and
inserting ‘‘2002’’; and
(bb) by striking ‘‘those sys-
tems, and identify’’ and potential
reductions in trade barriers, and
identify and carry out’’;
(II) in subparagraph (B), by
striking ‘‘shall’’ and inserting ‘‘may’’;
(III) in subparagraph (D), by in-
serting ‘‘(including the establishment
of extension services)’’ after ‘‘tech-
nical assistance’’;
(IV) by striking subparagraph
(F);
(V) by redesignating subpara-
graph (G), (H), and (I) as subpara-
graph (F), (G), and (H), respectively;
and
(VI) in subparagraph (H) (as re-
designated by subclause (V)), by strik-
ing 
‘‘$10,000,000’’ 
and 
inserting
‘‘$20,000,000’’;
(iii) in paragraph (2)—
173
(I) 
by 
striking 
‘‘the 
Soviet
Union’’ each place it appears and in-
serting ‘‘emerging markets’’;
(II) in subparagraph (A), by
striking ‘‘a free market food produc-
tion and distribution system’’ and in-
serting ‘‘free market food production
and distribution systems’’;
(III) in subparagraph (B)—
(aa) in clause (i), by striking
‘‘Government’’ 
and 
inserting
‘‘governments’’;
(bb) in clause (iii)(II), by
striking ‘‘and’’ at the end;
(cc) in clause (iii)(III), by
striking the period at the end
and inserting ‘‘; and’’; and
(dd) by adding at the end of
clause (iii) the following:
‘‘(IV) to provide for the exchange
of administrators and faculty mem-
bers from agricultural and other insti-
tutions to strengthen and revise edu-
cational programs in agricultural eco-
nomics, agribusiness, and agrarian
174
law, to support change towards a free
market economy in emerging mar-
kets.’’;
(IV) by striking subparagraph
(D); and
(V) by redesignating subpara-
graph (E) as subparagraph (D); and
(iv) by striking paragraph (3).
(4) UNITED STATES AGRICULTURAL COMMOD-
ITY.—Subsections (b) and (c) of section 1542 of the
Act are amended by striking ‘‘section 101(6)’’ each
place it appears and inserting ‘‘section 102(7)’’.
(5) REPORT.—The first sentence of section
1542(e)(2) of the Act is amended by striking ‘‘Not’’
and inserting ‘‘Subject to section 217 of the Depart-
ment of Agriculture Reorganization Act of 1994 (7
U.S.C. 6917), not’’.
(b) AGRICULTURAL
FELLOWSHIP PROGRAM
FOR
MIDDLE INCOME COUNTRIES, EMERGING DEMOCRACIES,
AND EMERGING MARKETS.—Section 1543 of the Act (7
U.S.C. 3293) is amended—
(1) in the section heading, by striking ‘‘MID-
DLE INCOME COUNTRIES AND EMERG-
ING DEMOCRACIES’’ and inserting ‘‘MID-
DLE INCOME COUNTRIES, EMERGING
175
DEMOCRACIES, AND EMERGING MAR-
KETS’’;
(2) in subsection (b), by adding at the end the
following:
‘‘(5) EMERGING MARKET.—Any emerging mar-
ket, as defined in section 1542(f).’’; and
(3) in subsection (c)(1), by striking ‘‘food
needs’’ and inserting ‘‘food and fiber needs’’.
(c) CONFORMING AMENDMENTS.—
(1) Section 201(d)(1)(C)(ii) of the Agricultural
Trade Act of 1978 (7 U.S.C. 5621(d)(1)(C)(ii) is
amended by striking ‘‘emerging democracies’’ and
inserting ‘‘emerging markets’’.
(2) Section 202(d)(3)(B) of the Act (7 U.S.C.
5622(d)(3)(B)) is amended by striking ‘‘emerging
democracies’’ and inserting ‘‘emerging markets’’.
SEC. 450. IMPORT ASSISTANCE FOR CBI BENEFICIARY
COUNTRIES AND THE PHILIPPINES.
Section 583 of Public Law 100–202 (101 Stat. 1329–
182) is repealed.
SEC. 451. STUDIES, REPORTS, AND OTHER PROVISIONS.
(a) IN GENERAL.—Sections 1551 through 1555, sec-
tion 1559, and section 1560 of subtitle E of title XV of
the Food, Agriculture, Conservation, and Trade Act of
1990 (Public Law 101–624; 104 Stat. 3696) are repealed.
176
(b) LANGUAGE PROFICIENCY.—Section 1556 of the
Act (Public Law 101–624; 7 U.S.C. 5694 note) is amend-
ed by striking subsection (c).
SEC. 452. MONITORING COMPLIANCE WITH URUGUAY
ROUND AGREEMENTS.
Title I of the Agricultural Trade Act of 1978 (7
U.S.C. 5601 et seq.) as amended by section 432(b), is
amended by adding at the end the following:
‘‘SEC. 107. MONITORING COMPLIANCE WITH URUGUAY
ROUND AGREEMENTS.
‘‘The Secretary shall monitor compliance with foreign
countries with the provisions of the Agriculture Agreement
of the Uruguay Round of Multilateral Trade Negotiations
of the General Agreement on Tariffs and Trade. If the
Secretary determines that any foreign country has failed
to meet a commitment under the Agreement and that such
failure will adversely affect the ability to export United
States agriculture exports or products to the country, the
Secretary shall—
‘‘(1) submit to the United States Trade Rep-
resentative a recommendation as to whether the
President should take action under any provision of
law; and
‘‘(2) transmit a copy of the recommendation
and any decision on such recommendation to the
177
Committee on Agriculture and the Committee on
Ways and Means of the House of Representatives
and the Committee on Agriculture, Nutrition, and
Forestry and the Committee on Finance of the Sen-
ate.’’.
SEC. 453. LIMITATION ON DURUM WHEAT EXPORT SUB-
SIDIES.
Section 301(b) of the Agricultural Trade Act of 1978
(7 U.S.C. 5651(b)) is amended by adding at the end the
following:
‘‘(9) SPECIAL RULE FOR NO. 1 AND NO. 2 HARD
AMBER DURUM WHEAT EXPORTS.—In any market-
ing year for which the projected stocks to use ratio
prepared by the Secretary of Agriculture for durum
wheat is less than or equal to 40 percent, or in any
calendar year in which there are in effect any trade
restrictions on the importation of durum wheat into
the United States, including quotas, ad valorem tar-
iffs, or tariff-rate quotas, the Commodity Credit
Corporation may not make available any assistance
(whether in the form of agricultural commodities,
cash payments, or other bonus) under this section
for the export of No. 1 and No. 2 Hard Amber
durum wheat.’’.
178
SEC. 454. MARKET PROMOTION PROGRAM.
Effective as of October 1, 1995, section 211(c)(1) of
the Agricultural Trade Act of 1978 (7 U.S.C. 5641(c)(1))
is amended—
(1) by striking ‘‘and’’ after ‘‘1991 through
1993’’; and
(2) by striking ‘‘through 1997,’’ and inserting
‘‘through 1995, and not more than $100,000,000
for each of fiscal years 1996 through 2002,’’.
SEC. 455. EXPORT ENHANCEMENT PROGRAM.
(a) PRIORITY FUNDING FOR WHEAT FLOUR.—Sec-
tion 301 of the Agricultural Trade Act of 1978 (7 U.S.C.
5651) is amended—
(1) by redesignating subsections (d) through (g)
as subsections (e) through (h), respectively; and
(2) by adding the following:
‘‘(d) PRIORITY FUNDING FOR WHEAT FLOUR.—As
determined by the Secretary to be consistent with the
United States obligations under the General Agreements
on Tariffs and Trade, the Commodity Credit Corporation
shall make funds available under this section on an annual
basis for the sale of wheat flour in sufficient amounts to
maintain the percentage of market share of world commer-
cial markets achieved by the United States wheat flour
industry during the Uruguay Round base period years of
1986 through 1988.’’.
179
(b) FUNDING LEVELS.—Effective as of October 1,
1995, section 301(e) of the Agricultural Trade Act of
1978 (7 U.S.C. 5651(e)), as redesignated by subsection
(a), is amended to read as follows:
‘‘(f) FUNDING LEVELS.—The Commodity Credit
Corporation shall make available to carry out the program
established under this section not more than—
‘‘(1) $350,000,000 for fiscal year 1996;
‘‘(2) $350,000,000 for fiscal year 1997;
‘‘(3) $500,000,000 for fiscal year 1998;
‘‘(4) $550,000,000 for fiscal year 1999;
‘‘(5) $579,000,000 for fiscal year 2000;
‘‘(6) $478,000,000 for fiscal year 2001; and
‘‘(7) $478,000,000 for fiscal year 2002.’’.
(c) HIGH VALUE AND VALUE-ADDED PRODUCTS.—
Section 303 of the Act (7 U.S.C. 5653) is repealed.
SEC. 456. MONITORING COMPLIANCE WITH SANITARY AND
PHYTOSANITARY MEASURES.
Section 414 of the Agricultural Trade Act of 1978
(7 U.S.C. 5674) is amended by adding at the end the fol-
lowing:
‘‘(c) MONITORING COMPLIANCE WITH SANITARY
AND PHYTOSANITARY MEASURES.—The Secretary shall
monitor the compliance of World Trade Organization
member countries with the sanitary and phytosanitary
180
measures of the Agriculture Agreement of the Uruguay
Round of Multilateral Trade Negotiations of the General
Agreement on Tariffs and Trade. If the Secretary deter-
mines that any country has failed to meet the commitment
on sanitary and phytosanitary measures under the Agree-
ment, the Secretary shall—
‘‘(1) take any appropriate action under any pro-
vision of law; and
‘‘(2) report to the Committee on Agriculture
and the Committee on Ways and Means of the
House of Representatives and the Committee on Ag-
riculture, Nutrition, and Forestry and the Commit-
tee on Finance of the Senate—
‘‘(A) that a country has failed to meet the
sanitary and phytosanitary commitments; and
‘‘(B) any action taken by the Secretary.’’.
SEC. 457. AGRICULTURAL TRADE PROGRAM FLEXIBILITY.
(a) IN GENERAL.—If the Secretary determines by
June 1 of any fiscal year that, despite the best efforts
to do so, commodities or funds for that fiscal year for any
program under section 201, 202, 203, or 301 of the Agri-
cultural Trade Act of 1978 (7 U.S.C. 5601 et seq.) or
section 301(b)(2) of the Disaster Assistance Act (7 U.S.C.
1464 note) are not necessary to successfully accomplish
the objectives of that program, the Secretary shall use
181
those commodities and funds for any other program under
any of such sections, in a manner consistent with United
States’ obligations under the General Agreement on Tar-
iffs and Trade.
(b) LIMITATION.—In exercising the authority under
subsection (a), the Secretary shall ensure that any funds
or commodities made available for any other program does
not exceed 30 percent of the authorized level of the pro-
gram.
SEC. 458. SUNFLOWER SEED OIL AND COTTONSEED OIL EX-
PORT SALES.
Section 301(b)(2) of the Disaster Assistance Act of
1988 (7 U.S.C. 1464 note) is amended by striking ‘‘1991
through 1995’’ and inserting ‘‘1996 through 2002’’.
SEC. 459. FOREIGN MARKET DEVELOPMENT COOPERATOR
PROGRAM.
The Agricultural Trade Act of 1978 (7 U.S.C. 5601
et seq.) is amended by adding at the end the following:
‘‘TITLE VII—FOREIGN MARKET
DEVELOPMENT COOPERATOR
PROGRAM
‘‘SEC. 701. DEFINITION OF ELIGIBLE TRADE ORGANIZA-
TION.
‘‘In this title, the term ‘eligible trade organization’
means a United States trade organization that—
182
‘‘(1) promotes the export of 1 or more United
States agricultural commodities or products; and
‘‘(2) does not have a business interest in or re-
ceive remuneration from specific sales of agricultural
commodities or products.
‘‘SEC. 702. FOREIGN MARKET DEVELOPMENT COOPERATOR
PROGRAM.
‘‘(a) IN GENERAL.—The Secretary shall establish
and, in cooperation with eligible trade organizations, carry
out a foreign market development cooperator program to
maintain and develop foreign markets for United States
agricultural commodities and products.
‘‘(b) ADMINISTRATION.—Funds made available to
carry out this title shall be used only to provide—
‘‘(1) cost-share assistance to an eligible trade
organization under a contract or agreement with the
organization; and
‘‘(2) assistance for other costs that are nec-
essary or appropriate to carry out the foreign mar-
ket development program, including contingent li-
abilities that are not otherwise funded.
‘‘SEC. 703. AUTHORIZATION OF APPROPRIATIONS.
‘‘There are authorized to be appropriated to carry out
this title such sums as may be necessary for each of fiscal
years 1996 through 2002.’’.
183
Subtitle D—Dairy Export Programs
SEC. 461. AUTHORITY TO ASSIST IN ESTABLISHMENT AND
MAINTENANCE OF EXPORT TRADING COM-
PANY.
The Secretary of Agriculture shall, consistent with
the obligations of the United States as a member of the
World Trade Organization, provide such advice and assist-
ance of the United States dairy industry as may be nec-
essary to enable that industry to establish and maintain
an export trading company under the Export Trading
Company Act of 1982 (15 U.S.C. 4001 et seq.) for the
purpose of facilitating the international market develop-
ment for and exportation of dairy products produced in
the United States.
SEC. 462. STANDBY AUTHORITY TO DESIGNATE ENTITY TO
PROVIDE INTERNATIONAL MARKET DEVEL-
OPMENT AND EXPORT SERVICES.
(a) DESIGNATION OF ENTITY TO ASSIST IN THE
INTERNATIONAL MARKET DEVELOPMENT FOR AN EX-
PORT OF UNITED STATES DAIRY PRODUCTS.—If—
(1) the United States dairy industry has not es-
tablished an export trading company under the Ex-
port Trading Company Act of 1982 (15 U.S.C. 4001
et seq.) for the purpose of facilitating the inter-
national market development for an exportation of
184
dairy products produced in the United States on or
before January 1, 1997; or
(2) the quantity of exports of United States
dairy products during the 12-month period preced-
ing January 1, 1998, does not exceed the quantity
of exports of United States dairy products during
the 12-month period preceding January 1, 1997, by
1.5 billion pounds (milk equivalent, total solids
basis);
the Secretary of Agriculture is directed to indicate which
entity autonomous of the Government of the United States
is best suited to facilitate the international market devel-
opment for and exportation of United States dairy prod-
ucts.
(b) FUNDING OF EXPORT ACTIVITIES.—The Sec-
retary shall assist the entity in identifying sources of fund-
ing for the activities specified in subsection (a) from with-
in the dairy industry and elsewhere.
(c) APPLICATION OF SECTION.—This section shall
apply only during the period beginning on January 1,
1998 and ending on September 30, 2000.
185
SEC. 463. ASSURANCE OF EQUITABLE TREATMENT, FAIR
DEALING AND PROTECTION FROM DISCRIMI-
NATORY PRACTICES FOR UNITED STATES
PARTICIPANTS IN THE WORLD MARKET FOR
DAIRY PRODUCTS.
(a) PURPOSE.—The Secretary of Agriculture shall
carry out this section in such a manner as to promote the
efficient operation of Federal dairy programs and to as-
sure their consistency with the rights and obligations of
members of the World Trade Organization as well as the
rights and obligations of non-members of the World Trade
Organization under international law.
(b) EFFECTS OF CERTAIN DISCRIMINATORY PRAC-
TICES BY COUNTRIES OF ORIGIN.—In administering im-
port licenses for cheese and non-cheese dairy products, the
Secretary of Agriculture, in the event that it is shown to
the satisfaction of the Secretary that a country of origin
discriminates against a licensee with respect to either the
price or the availability of such a product—
(1) shall not impose any penalty with respect to
the failure of that licensee to use any portion of its
license amount during a quota year; and
(2) shall adjust the country of origin, if the
Secretary shall obtain prior consent for such an ad-
justment from the government of the exporting
country, as necessary to comply with the commit-
186
ments of the United States with respect to quan-
tities originating under the Uruguay Round Agree-
ments of the General Agreement on Tariffs and
Trade.
(c) EXPORT MONOPOLIES.—
(1) ENCOURAGEMENT OF FAIR DEALING.—The
Secretary shall not impose any penalty with respect
to the failure of a licensee to use any portion of its
license amount for such a product from a country of
origin that establishes, sanctions, or otherwise per-
mits an internationally integrated state trading en-
terprise or other export monopoly to control the ex-
port of the product concerned.
(2) PROTECTION
AGAINST
DISCRIMINATORY
PRACTICES.—With respect to any country of origin
that—
(A) exports cheese or non-cheese dairy
products through an internationally integrated
state trading enterprise or an export monopoly;
and
(B) designates an importer or importers to
receive a license for such products;
if, within 3 years of the discriminatory occurrence,
it is shown to the satisfaction of the Secretary that
the licensee has been discriminated against either as
187
to the price or availability of a product by the coun-
try of origin, its designated licensee, or any other
party or agent acting on behalf of the country of ori-
gin or its designated licensee, the Secretary shall re-
voke for a period of time not less than 3 years the
eligibility of the country of origin to designate a li-
censee for the import of cheese under license, except
that the Secretary shall obtain prior consent for
such revocation from the government of the export-
ing country as necessary to comply with the commit-
ments of the United States regarding quantities
originating under the Uruguay Round of the General
Agreement on Tariffs and Trade.
(3) ALLOCATION
OF
AVAILABLE
LICENSES.—
Any rights to import made available as a result of
a revocation under paragraph (2) shall, during the
revocation period for such license, be distributed
among historical and other eligible licensees on the
basis of a rank-order lottery system determined ap-
propriate by the Secretary.
(d) EQUITABLE TREATMENT
OF HISTORICAL LI-
CENSEES.—Consistent with the guarantees provided by
the United States to cheese exporting countries in the
memoranda of understanding executed under the auspices
of the Uruguay Round Agreements of the General Agree-
188
ment on Tariffs and Trade, any license for the import of
cheese held by an historical licensee shall not be reduced
below the amounts in effect as of December 15, 1993 with-
out the consent of the licensee, except in the event that
it is shown to the satisfaction of the Secretary of Agri-
culture that the licensee has engaged in fraudulent or
criminal activity in violation of the regulations governing
such licenses.
(e) DEFINITIONS.—For purposes of this section—
(1) the terms ‘‘country of origin’’, ‘‘designated
importer’’, ‘‘historical license’’, and ‘‘historical li-
censee’’ shall have the same meaning as when such
terms are used in sections 6.20 through 6.34 of title
7 of the Code of Federal Regulations; and
(2) the term ‘‘internationally integrated state
trading enterprise’’ means an entity which—
(A) is established or sanctioned by the
country of origin as a statutory export monop-
oly with sole sourcing and pricing rights for
dairy products destined for export;
(B) is part of a license system that pro-
hibits United States licensees from purchasing
cheese and non-cheese dairy products from the
vendor of choice in the country of origin, and
that requires licensees to acquire from the en-
189
tity or its captive subsidiary all or substantially
all of any cheese or non-cheese dairy product
for import from the country of origin; and
(C) owns or controls licenses for the im-
port of cheese or non-cheese dairy products
from the country of origin, where the prepon-
derance of such licenses are used for the import
of commodity-type cheese and other processing-
type dairy products.
(f) APPLICATION OF SECTION.—This section shall
apply on and after January 1, 1997.
SEC. 464. STUDY AND REPORT REGARDING POTENTIAL IM-
PACT OF URUGUAY ROUND ON PRICES, IN-
COME AND GOVERNMENT PURCHASES.
(a) STUDY.—The Secretary of Agriculture shall con-
duct a study, on a variety by variety of cheese basis, to
determine the potential impact on milk prices in the
United States, dairy producer income, and Federal dairy
program costs, of the allocation of additional cheese grant-
ed access to the United States as a result of the obliga-
tions of the United States as a member of the World
Trade Organization.
(b) REPORT.—Not later than March 31, 1997, the
Secretary shall report to the Committee on Agriculture of
190
the Senate and the House of Representatives the results
of the study conducted under this section.
(c) RULE OF CONSTRUCTION.—Any limitation im-
posed by Act of Congress on the conduct or completion
of studies or reports to Congress shall not apply to the
study and report required under this section unless such
limitation explicitly references this section in doing so.
TITLE V—EXTENSION OF
RESEARCH AUTHORITIES
SEC. 501. EXTENSION OF NATIONAL GENETIC RESOURCES
PROGRAM.
Section 1635(b) of the Food, Agriculture, Conserva-
tion, and Trade Act of 1990 (7 U.S.C. 5844(b)) is amend-
ed by striking ‘‘1995’’ and inserting ‘‘1997’’.
SEC. 
502. 
EXTENSION 
OF 
NATIONAL 
AGRICULTURAL
WEATHER INFORMATION SYSTEM.
Section 1641(c) of the Food, Agriculture, Conserva-
tion, and Trade Act of 1990 (7 U.S.C. 5855(c)) is amend-
ed by striking ‘‘1995’’ and inserting ‘‘1997’’.
191
SEC. 503. EXTENSION OF RESEARCH PROGRAM REGARDING
PRODUCTION, PREPARATION, PROCESSING,
HANDLING, 
AND 
STORAGE 
OF 
AGRICUL-
TURAL PRODUCTS.
Section 1647(a) of the Food, Agriculture, Conserva-
tion, and Trade Act of 1990 (7 U.S.C. 5874(a)) is amend-
ed by striking ‘‘1995’’ and inserting ‘‘1997’’.
SEC. 504. EXTENSION OF WATER QUALITY RESEARCH, EDU-
CATION, AND COORDINATION.
Section 1481(d) of the Food, Agriculture, Conserva-
tion, and Trade Act of 1990 (7 U.S.C. 5501(d)) is amend-
ed by striking ‘‘1995’’ and inserting ‘‘1997’’.
SEC. 505. EXTENSION OF LIVESTOCK PRODUCT SAFETY
AND INSPECTION PROGRAM.
Section 1670(e) of the Food, Agriculture, Conserva-
tion, and Trade Act of 1990 (7 U.S.C. 5923(e)) is amend-
ed by striking ‘‘1995’’ and inserting ‘‘1997’’.
SEC. 506. EXTENSION OF MESQUITE RESEARCH PROGRAM.
Section 1672(d)(4) of the Food, Agriculture, Con-
servation, and Trade Act of 1990 (7 U.S.C. 5925(d)(4))
is amended by striking ‘‘1995’’ and inserting ‘‘1997’’.
SEC. 507. EXTENSION OF PRICKLY PEAR RESEARCH PRO-
GRAM.
Section 1672(e)(4) of the Food, Agriculture, Con-
servation, and Trade Act of 1990 (7 U.S.C. 5925(e)(4))
is amended by striking ‘‘1995’’ and inserting ‘‘1997’’.
192
SEC. 508. EXTENSION OF DEER TICK ECOLOGY AND RELAT-
ED RESEARCH PROGRAM.
Section 1672(i) of the Food, Agriculture, Conserva-
tion, and Trade Act of 1990 (7 U.S.C. 5925(i)) is amend-
ed by striking ‘‘1995’’ and inserting ‘‘1997’’.
SEC. 509. EXTENSION OF AGRICULTURAL TELECOMMUNI-
CATIONS PROGRAM.
Section 1673(h) of the Food, Agriculture, Conserva-
tion, and Trade Act of 1990 (7 U.S.C. 5926(h)) is amend-
ed by striking ‘‘1995’’ and inserting ‘‘1997’’.
SEC. 510. EXTENSION OF NATIONAL CENTERS FOR AGRI-
CULTURAL PRODUCT QUALITY RESEARCH.
Section 1675(g)(1) of the Food, Agriculture, Con-
servation, and Trade Act of 1990 (7 U.S.C. 5928(g)(1))
is amended by striking ‘‘1995’’ and inserting ‘‘1997’’.
SEC. 511. EXTENSION OF PILOT PROJECT TO COORDINATE
FOOD 
AND 
NUTRITION 
EDUCATION 
PRO-
GRAMS.
Section 1679(d) of the Food, Agriculture, Conserva-
tion, and Trade Act of 1990 (7 U.S.C. 5932(d)) is amend-
ed by striking ‘‘1995’’ and inserting ‘‘1997’’.
SEC. 512. EXTENSION OF ASSISTIVE TECHNOLOGY PRO-
GRAM FOR FARMERS WITH DISABILITIES.
(a) SPECIAL DEMONSTRATION GRANTS.—Subsection
(a)(6)(B) of section 1680 of the Food, Agriculture, Con-
193
servation, and Trade Act of 1990 (7 U.S.C. 5933) is
amended by striking ‘‘1996’’ and inserting ‘‘1997’’.
(b) NATIONAL GRANT FOR TECHNICAL ASSISTANCE,
TRAINING
AND DISSEMINATION.—Subsection (b)(2) of
such section is amended by striking ‘‘1996’’ and inserting
‘‘1997’’.
SEC. 513. EXTENSION OF NATIONAL RURAL INFORMATION
CENTER CLEARINGHOUSE.
Section 2381(e) Food, Agriculture, Conservation, and
Trade Act of 1990 (7 U.S.C. 3125b(e)) is amended by
striking ‘‘1995’’ and inserting ‘‘1997’’.
SEC. 514. EXTENSION OF INDIAN SUBSISTENCE FARMING
DEMONSTRATION GRANT PROGRAM.
Section 939 of the Food, Agriculture, Conservation,
and Trade Act Amendments of 1991 (7 U.S.C. 5930 note)
is amended by striking ‘‘1995’’ and inserting ‘‘1997’’.
SEC. 515. EXTENSION OF JOINT COUNCIL ON FOOD AND AG-
RICULTURAL SCIENCES.
Section 1407(a) of the National Agricultural Re-
search, Extension, and Teaching Policy Act of 1977 (7
U.S.C. 3122(a)) is amended by striking ‘‘1995’’ and in-
serting ‘‘1997’’.
194
SEC. 516. EXTENSION OF NATIONAL AGRICULTURAL RE-
SEARCH AND EXTENSION USERS ADVISORY
BOARD.
Section 1408(a) of the National Agricultural Re-
search, Extension, and Teaching Policy Act of 1977 (7
U.S.C. 3123(a)) is amended by striking ‘‘1995’’ and in-
serting ‘‘1997’’.
SEC. 517. EXTENSION OF PROGRAM OF GRANTS AND FEL-
LOWSHIPS FOR FOOD AND AGRICULTURAL
SCIENCES EDUCATION.
Section 1417(i) of the National Agricultural Re-
search, Extension, and Teaching Policy Act of 1977 (7
U.S.C. 3152(i)) is amended by striking ‘‘1995’’ and in-
serting ‘‘1997’’.
SEC. 518. EXTENSION OF GRANT PROGRAM FOR RESEARCH
ON THE PRODUCTION AND MARKETING OF
ALCOHOLS 
AND 
INDUSTRIAL 
HYDRO-
CARBONS FROM AGRICULTURAL COMMOD-
ITIES AND FOREST PRODUCTS.
Section 1419(d) of the National Agricultural Re-
search, Extension, and Teaching Policy Act of 1977 (7
U.S.C. 3154(d)) is amended by striking ‘‘1995’’ and in-
serting ‘‘1997’’.
195
SEC. 519. EXTENSION OF FOOD SCIENCE AND NUTRITION
RESEARCH CENTER.
Section 1424(d) of the National Agricultural Re-
search, Extension, and Teaching Policy Act of 1977 (7
U.S.C. 3174(d)) is amended by striking ‘‘1995’’ and in-
serting ‘‘1997’’.
SEC. 520. EXTENSION OF NUTRITION EDUCATION PRO-
GRAM.
Section 1425(c)(3) of the National Agricultural Re-
search, Extension, and Teaching Policy Act of 1977 (7
U.S.C. 3175(c)(3)) is amended by striking ‘‘fiscal year
1995’’ and inserting ‘‘each of the fiscal years 1995
through 1997’’.
SEC. 521. EXTENSION OF ANIMAL HEALTH SCIENCE RE-
SEARCH ADVISORY BOARD.
Section 1432(a) of the National Agricultural Re-
search, Extension, and Teaching Policy Act of 1977 (7
U.S.C. 3194(a)) is amended by striking ‘‘1995’’ and in-
serting ‘‘1997’’.
SEC. 522. EXTENSION OF ANIMAL HEALTH AND DISEASE
RESEARCH PROGRAMS.
Section 1433(a) of the National Agricultural Re-
search, Extension, and Teaching Policy Act of 1977 (7
U.S.C. 3195(a)) is amended by striking ‘‘1995’’ and in-
serting ‘‘1997’’.
196
SEC. 523. EXTENSION OF RESEARCH ON NATIONAL OR RE-
GIONAL ANIMAL HEALTH OR DISEASE PROB-
LEMS.
Section 1434(a) of the National Agricultural Re-
search, Extension, and Teaching Policy Act of 1977 (7
U.S.C. 3196(a)) is amended by striking ‘‘1995’’ and in-
serting ‘‘1997’’.
SEC. 524. EXTENSION OF RESIDENT INSTRUCTION PRO-
GRAM AT 1890 LAND-GRANT COLLEGES.
Section 1446(f) of the National Agricultural Re-
search, Extension, and Teaching Policy Act of 1977 (7
U.S.C. 3222a(f)) is amended by striking ‘‘1995’’ and in-
serting ‘‘1997’’.
SEC. 525. EXTENSION OF GRANT PROGRAM TO UPGRADE
AGRICULTURAL AND FOOD SCIENCES FACILI-
TIES AT 1890 LAND-GRANT COLLEGES.
Section 1447(b) of the National Agricultural Re-
search, Extension, and Teaching Policy Act of 1977 (7
U.S.C. 3222b(b)) is amended by striking ‘‘1995’’ and in-
serting ‘‘1997’’.
SEC. 526. EXTENSION OF NATIONAL RESEARCH AND TRAIN-
ING CENTENNIAL CENTERS.
Section 1448 of the National Agricultural Research,
Extension, and Teaching Policy Act of 1977 (7 U.S.C.
3222c) is amended—
197
(1) in subsection (a)(1), by striking ‘‘1995’’ and
inserting ‘‘1997’’; and
(2) in subsection (f), by striking ‘‘1995’’ and
inserting ‘‘1997’’.
SEC. 527. EXTENSION OF MISCELLANEOUS RESEARCH PRO-
GRAMS.
Section 1463 of the National Agricultural Research,
Extension, and Teaching Policy Act of 1977 (7 U.S.C.
3311) is amended by striking ‘‘1995’’ both places it ap-
pears and inserting ‘‘1997’’.
SEC. 528. EXTENSION OF EXTENSION EDUCATION PRO-
GRAM.
Section 1464 of the National Agricultural Research,
Extension, and Teaching Policy Act of 1977 (7 U.S.C.
3312) is amended by striking ‘‘fiscal year 1995’’ and in-
serting ‘‘each of the fiscal years 1995 through 1997’’.
SEC. 529. EXTENSION OF RESEARCH AND PILOT PROJECT
FOR THE DEVELOPMENT OF SUPPLEMENTAL
AND ALTERNATIVE CROPS.
Section 1473D(a) of the National Agricultural Re-
search, Extension, and Teaching Policy Act of 1977 (7
U.S.C. 3319d(a)) is amended by striking ‘‘1995’’ and in-
serting ‘‘1997’’.
198
SEC. 530. EXTENSION OF AQUACULTURE ASSISTANCE PRO-
GRAMS.
(a) AQUACULTURE RESEARCH FACILITIES.—Section
1476(b) of the National Agricultural Research, Extension,
and Teaching Policy Act of 1977 (7 U.S.C. 3323(b)) is
amended by striking ‘‘1995’’ and inserting ‘‘1997’’.
(b) RESEARCH AND EXTENSION.—Section 1477 of
such Act (7 U.S.C. 3324) is amended by striking ‘‘1995’’
and inserting ‘‘1997’’.
SEC. 531. EXTENSION OF RANGELAND RESEARCH PRO-
GRAM.
(a) ADVISORY BOARD.—Section 1482(a) of the Na-
tional Agricultural Research, Extension, and Teaching
Policy Act of 1977 (7 U.S.C. 3335(a)) is amended by
striking ‘‘1995’’ and inserting ‘‘1997’’.
(b) RESEARCH PROGRAM.—Section 1483(a) of such
Act (7 U.S.C. 3336(a)) is amended by striking ‘‘1995’’
and inserting ‘‘1997’’.
SEC. 532. EXTENSION OF DAIRY GOAT RESEARCH PRO-
GRAM.
Section 1432(b)(5) of the Agriculture and Food Act
of 1981 (7 U.S.C. 3222 note) is amended by striking
‘‘1995’’ and inserting ‘‘1997’’.
199
SEC. 533. EXTENSION OF CONSTRUCTION PROGRAM FOR
FEDERAL AGRICULTURAL RESEARCH FACILI-
TIES.
Section 1431 of the Food Security Act of 1985 (Pub-
lic Law 99–198; 99 Stat. 1556) is amended by striking
‘‘1995’’ both places it appears and inserting ‘‘1997’’.
SEC. 534. EXTENSION OF THE COMPETITIVE, SPECIAL, AND
FACILITIES RESEARCH GRANT ACT.
The Competitive, Special, and Facilities Research
Grant Act (7 U.S.C. 450i) is amended in subsection
(b)(10) by striking ‘‘fiscal year 1995’’ and inserting ‘‘each
of the fiscal years 1995 through 1997’’.
SEC. 535. EXTENSION OF THE RESEARCH FACILITIES ACT.
Section 4(a) of the Research Facilities Act (7 U.S.C.
390c(a)) is amended by striking ‘‘1995’’ and inserting
‘‘1997’’.
SEC. 536. EXTENSION OF CRITICAL AGRICULTURAL MATE-
RIALS RESEARCH.
Section 16(a) of the Critical Agricultural Materials
Act (7 U.S.C. 178n(a)) is amended by striking ‘‘1995’’
and inserting ‘‘1997’’.
SEC. 537. EXTENSION OF PSEUDORABIES ERADICATION
PROGRAM.
Section 2506(d) of the Food, Agriculture, Conserva-
tion, and Trade Act of 1990 (21 U.S.C. 114i(d)) is
amended by striking ‘‘1995’’ and inserting ‘‘1997’’.
200
TITLE VI—ISSUANCE OF ORDERS
FOR PROMOTION, RESEARCH,
AND 
INFORMATION 
ACTIVI-
TIES REGARDING AGRICUL-
TURAL COMMODITIES
SEC. 601. SHORT TITLE.
This title may be cited as the ‘‘Commodity Pro-
motion, Research and Information Act of 1996’’.
SEC. 602. FINDINGS AND PURPOSE.
(a) FINDINGS.—Congress finds the following:
(1) The production of agricultural commodities
plays a significant role in the economy of the United
States. Thousands of producers in the United States
are involved in the production of agricultural com-
modities, and such commodities are consumed by
millions of people throughout the United States and
foreign countries.
(2) Agricultural commodities must be of high
quality, readily available, handled properly, and mar-
keted efficiently to ensure that consumers have an
adequate supply.
(3) The maintenance and expansion of existing
markets and the development of new markets for ag-
ricultural commodities through generic promotion,
research, and information programs are vital to the
201
welfare of persons engaged in the production, mar-
keting, and consumption of such commodities, as
well as to the general economy of the United States.
(4) Generic promotion, research, and informa-
tion activities for agricultural commodities play a
unique role in advancing the demand for such com-
modities, since such activities increase the total mar-
ket for a product to the benefit of consumers and all
producers. These generic activities complement
branded advertising initiatives, which are aimed at
increasing the market share of individual competi-
tors, and are of particular benefit to small producers
who lack the resources or market power to advertise
on their own. These generic activities do not impede
the branded advertising efforts of individual firms,
but instead increase general market demand for an
agricultural commodity using methods that individ-
ual companies do not have the incentive to employ.
(5) Generic promotion, research, and informa-
tion activities for agricultural commodities, paid by
the producers and others in the industry who reap
the benefits of such activities, provide a unique op-
portunity for producers to inform consumers about
a particular agricultural commodity.
202
(6) It is important to ensure that generic pro-
motion, research, and information activities for agri-
cultural commodities be carried out in an effective
and coordinated manner designed to strengthen the
position of the commodities in the marketplace and
to maintain and expand their markets and uses.
Independent evaluation of the effectiveness of the
generic promotion activities of these programs will
assist the Secretary of Agriculture and the Congress
in ensuring that these objectives are met.
(7) The cooperative development, financing, and
implementation of a coordinated national program of
research, promotion, and information regarding agri-
cultural commodities are necessary to maintain and
expand existing markets and to develop new markets
for these commodities.
(8) Agricultural commodities move in interstate
and foreign commerce, and agricultural commodities
and their products that do not move in such chan-
nels of commerce directly burden or affect interstate
commerce in agricultural commodities and their
products.
(b) PURPOSE.—It is the purpose of this title to au-
thorize the establishment, through the exercise by the Sec-
retary of Agriculture of the authority provided in this title,
203
of an orderly program for developing, financing and carry-
ing out an effective, continuous, and coordinated program
of generic promotion, research, and information regarding
agricultural commodities designed to—
(1) strengthen the position of agricultural com-
modity industries in the marketplace;
(2) maintain and expand existing domestic and
foreign markets and uses for agricultural commod-
ities; and
(3) develop new markets and uses for agricul-
tural commodities.
(c) RULE OF CONSTRUCTION.—This title shall not be
construed to provide for the control of production or other-
wise limit the right of any person to produce, to handle,
or to import an agricultural commodity.
SEC. 603. DEFINITIONS.
In this title:
(1) AGRICULTURAL
COMMODITY.—The term
‘‘agricultural commodity’’ means—
(A) agricultural, horticultural, viticultural,
and dairy products;
(B) livestock and the products of livestock;
(C) the products of poultry and bee rais-
ing;
(D) the products of forestry;
204
(E) other commodities raised or produced
on farms, as determined appropriate by the
Secretary; and
(F) products processed or manufactured
from products specified in the preceding sub-
paragraphs, as determined appropriate by the
Secretary.
(2) BOARD.—The term ‘‘board’’ means a board
established under an order issued under section 604.
(3) CONFLICT OF INTEREST.—The term ‘‘con-
flict of interest’’ means a situation in which a mem-
ber or employee of a board has a direct or indirect
financial interest in a person that performs a service
for, or enters into a contract with, a board for any-
thing of economic value.
(4) DEPARTMENT.—The term ‘‘Department’’
means the Department of Agriculture.
(5) FIRST
HANDLER.—The term ‘‘first han-
dler’’ means the first person who buys or takes pos-
session of an agricultural commodity from a pro-
ducer for marketing. If a producer markets the agri-
cultural commodity directly to consumers, the pro-
ducer shall be considered to be the first handler with
respect to the agricultural commodity grown by the
producer.
205
(6) HANDLE.—The term ‘‘handle’’ means re-
ceipt of a agricultural commodity by a first handler,
including an agricultural commodity produced by a
first handler.
(7) IMPORTER.—The term ‘‘importer’’ means
any person who imports an agricultural commodity
from outside of the United States for sale in the
United States as a principal or as an agent, broker,
or consignee or any person.
(8) INFORMATION.—The term ‘‘information’’
means information and programs that are designed
to increase efficiency in processing and the develop-
ment of new markets, marketing strategies, in-
creased marketing efficiency, and activities to en-
hance the image of agricultural commodities on a
national or international basis.
(9) MARKET.—The term ‘‘market’’ means to
sell or to otherwise dispose of an agricultural com-
modity in interstate, foreign, or intrastate com-
merce.
(10) ORDER.—The term ‘‘order’’ means an
order issued under section 604.
(11) PERSON.—The term ‘‘person’’ means any
individual, group of individuals, partnership, cor-
206
poration, association, cooperative, or any other legal
entity.
(12) PRODUCER.—The term ‘‘producer’’ means
any person engaged in the production and sale of an
agricultural commodity in the United States and
who owns, or shares the ownership and risk of loss
of, the agricultural commodity.
(13) 
PROMOTION.—The 
term 
‘‘promotion’’
means any action taken by a board under an order,
including paid advertising, to present a favorable
image of an agricultural commodity to the public to
improve the competitive position of the agricultural
commodity in the marketplace and to stimulate sales
of the agricultural commodity.
(14) RESEARCH.—The term ‘‘research’’ means
any type of test, study, or analysis designed to ad-
vance the image, desirability, use, marketability, pro-
duction, product development, or quality of an agri-
cultural commodity.
(15) 
SECRETARY.—The 
term 
‘‘Secretary’’
means the Secretary of Agriculture.
(16) STATE.—The term ‘‘State’’ means any of
the States, the District of Columbia, the Common-
wealth of Puerto Rico, or any territory or possession
of the United States.
207
(17) SUSPEND.—The term ‘‘suspend’’ means to
issue a rule under section 553 of title 5, United
States Code, to temporarily prevent the operation of
an order during a particular period of time specified
in the rule.
(18) 
TERMINATE.—The 
term 
‘‘terminate’’
means to issue a rule under section 553 of title 5,
United States Code, to cancel permanently the oper-
ation of an order beginning on a date certain speci-
fied in the rule.
(19) UNITED
STATES.—The term ‘‘United
States’’ means collectively the several States, the
District of Columbia, the Commonwealth of Puerto
Rico and the territories and possessions of the Unit-
ed States.
SEC. 604. ISSUANCE OF ORDERS.
(a) ISSUANCE AUTHORIZED.—
(1) IN GENERAL.—To effectuate the purpose of
this title, the Secretary may issue, and amend from
time to time, orders applicable to—
(A) the producers of an agricultural com-
modity;
(B) the first handlers of the agricultural
commodity and other persons in the marketing
chain as appropriate; and
208
(C) the importers of the agricultural com-
modity, if imports of the agricultural commod-
ity are subject to assessment under section
606(f).
(2) NATIONAL
SCOPE.—Each order issued
under this section shall be national in scope.
(b) PROCEDURE FOR ISSUANCE.—
(1) RECEIPT OR DEVELOPMENT OF PROPOSED
ORDER.—A proposed order with regard to an agri-
cultural commodity may be—
(A) prepared by the Secretary at any time
with respect to the agricultural commodity; or
(B) submitted to the Secretary by—
(i) an association of producers of the
agricultural commodity; or
(ii) any other person that may be af-
fected by the issuance of an order with re-
spect to the agricultural commodity.
(2) CONSIDERATION OF PROPOSED ORDER.—If
the Secretary determines that a proposed order is
consistent with and will effectuate the purpose of
this title, the Secretary shall publish the proposed
order in the Federal Register and give due notice
and opportunity for public comment on the proposed
order.
209
(3) EXISTENCE OF OTHER ORDERS.—In decid-
ing whether a proposal for an order is consistent
with and will effectuate the purpose of this title, the
Secretary may consider the existence of other Fed-
eral promotion, research, and information programs
or orders issued or developed pursuant to any other
law.
(4) PREPARATION OF FINAL ORDER.—After no-
tice and opportunity for public comment under para-
graph (2) regarding a proposed order, the Secretary
shall take into consideration the comments received
in preparing a final order, the Secretary shall ensure
that the final order is in conformity with the terms,
conditions, and requirements of this title.
(c) ISSUANCE AND EFFECTIVE DATE.—If the Sec-
retary determines that the final order developed with re-
gard to an agricultural commodity is consistent with and
will effectuate the purpose of this title, the Secretary shall
issue the final order. Except in the case of an order for
which an initial referendum is conducted under section
611(a), the final order shall be issued and become effective
not later than 270 days after the publication of the pro-
posed order that was the basis for the final order.
210
(d) AMENDMENTS.—From time to time the Secretary
may amend any order, consistent with the requirements
of section 613.
SEC. 605. REQUIRED TERMS IN ORDERS.
(a) IN GENERAL.—Each order shall contain the
terms and conditions specified in this section.
(b) BOARD.—
(1) ESTABLISHMENT.—Each order shall estab-
lish a board to carry out a program of generic pro-
motion, research, and information regarding the ag-
ricultural commodity covered by the order intended
to effectuate the purpose of this title.
(2) BOARD MEMBERSHIP.—
(A) NUMBER OF MEMBERS.—Each board
shall consist of the number of members consid-
ered by the Secretary, in consultation with the
agricultural commodity industry involved, to be
appropriate to administer the order. In addition
to members, the Secretary may also provide for
alternates on the board.
(B) APPOINTMENT.—The Secretary shall
appoint the members and any alternates of a
board from among producers of the agricultural
commodity and first handlers and others in the
marketing chain as appropriate. If imports of
211
the agricultural commodity covered by an order
are subject to assessment under section 606(f),
the Secretary shall also appoint importers as
members of the board and as alternatives if al-
ternates are included on the board. The Sec-
retary may appoint one or more members of the
general public to each board.
(C) NOMINATIONS.—The Secretary may
make appointments from nominations made
pursuant to the method set forth in the order.
(D) GEOGRAPHICAL
REPRESENTATION.—
To ensure fair and equitable representation of
the agricultural commodity industry covered by
an order, the composition of each board shall
reflect the geographical distribution of the pro-
duction of the agricultural commodity involved
and the quantity or value of the agricultural
commodity imported into the United States.
(3) REAPPORTIONMENT
OF
BOARD
MEMBER-
SHIP.—In accordance with rules issued by the Sec-
retary, at least once in each five-year period, but not
more frequently than once in each three-year period,
each board shall—
(A) review the geographical distribution of
the production of the agricultural commodity in
212
the United States covered by the order involved
and the quantity or value of the agricultural
commodity imported into the United States;
and
(B) if warranted, recommend to the Sec-
retary the reapportionment of the board mem-
bership to reflect changes in the geographical
distribution of the production of the agricul-
tural commodity and the quantity or value of
the imported agricultural commodity.
(4) NOTICE.—
(A) VACANCIES.—Each order shall provide
for notice of board vacancies to the agricultural
commodity industry involved.
(B) MEETINGS.—Each board shall provide
the Secretary with prior notice of meetings of
the board to permit the Secretary, or a des-
ignated representative of the Secretary, to at-
tend the meetings.
(5) TERM OF OFFICE.—
(A) IN GENERAL.—The members and any
alternates of a board shall serve for a term of
three years, except that the members and any
alternates initially appointed to a board shall
213
serve terms of not more than two, three, and
four years, as specified by the order.
(B) 
LIMITATION
ON
CONSECUTIVE
TERMS.—A member or alternate may serve not
more than two consecutive terms.
(C) CONTINUATION
OF
TERM.—Notwith-
standing subparagraph (B), each member or al-
ternate shall continue to serve until a successor
is appointed by the Secretary.
(D) VACANCIES.—A vacancy arising before
the expiration of a term of office of an incum-
bent member or alternate of a board shall be
filled in a manner provided for in the order.
(6) COMPENSATION.—
(A) IN GENERAL.—Members and any al-
ternates of a board shall serve without com-
pensation.
(B) TRAVEL EXPENSES.—If approved by a
board, members or alternates shall be reim-
bursed for reasonable travel expenses, which
may include a per diem allowance or actual sub-
sistence incurred while away from their homes
or regular places of business in the performance
of services for the board.
214
(c) POWERS AND DUTIES OF A BOARD.—Each order
shall specify the powers and duties of the board estab-
lished under the order, which shall include the power and
duty—
(1) to administer the order in accordance with
its terms and conditions and to collect assessments;
(2) to develop and recommend to the Secretary
for approval such bylaws as may be necessary for
the functioning of the board and such rules as may
be necessary to administer the order, including ac-
tivities authorized to be carried out under the order;
(3) to meet, organize, and select from among
members of the board a chairperson, other officers,
and committees and subcommittees, as the board de-
termines to be appropriate;
(4) to employ persons, other than the members,
as the board considers necessary to assist the board
in carrying out its duties, and to determine the com-
pensation and specify the duties of the persons;
(5) subject to subsection (e), to develop and
carry out generic promotion, research, and informa-
tion activities relating to the agricultural commodity
covered by the order;
(6) to prepare and submit for the approval of
the Secretary, before the beginning of each fiscal
215
year, rates of assessment under section 607 and an
annual budget of the anticipated expenses to be in-
curred in the administration of the order, including
the probable cost of each promotion, research, and
information activity proposed to be developed or car-
ried out by the board;
(7) to borrow funds necessary for the start-up
expenses of the order;
(8) subject to subsection (f), to enter into con-
tracts or agreements to develop and carry out ge-
neric promotion, research, and information activities
relating to the agricultural commodity covered by
the order;
(9) to pay the cost of the activities with assess-
ments collected under section 607, earnings from in-
vested assessments, and other funds;
(10) to keep records that accurately reflect the
actions and transactions of the board, to keep and
report minutes of each meeting of the board to the
Secretary, and to furnish the Secretary with any in-
formation or records the Secretary requests;
(11) to receive, investigate, and report to the
Secretary complaints of violations of the order; and
216
(12) to recommend to the Secretary such
amendments to the order as the board considers ap-
propriate.
(d) PROHIBITED ACTIVITIES.—A board may not en-
gage in, and shall prohibit the employees and agents of
the board from engaging in—
(1) any action that would be a conflict of inter-
est;
(2) any action undertaken for the purpose of in-
fluencing any legislation or governmental action or
policy other than recommending to the Secretary
amendments to the order; and
(3) any advertising, including promotion, re-
search, and information activities authorized to be
carried out under the order, that may be false or
misleading or disparaging to another agricultural
commodity.
(e) ACTIVITIES AND BUDGETS.—
(1) SUBMISSION TO SECRETARY.—Each order
shall require the board established under the order
to submit to the Secretary for approval plans and
projects for promotion, research, or information re-
lating to the agricultural commodity covered by the
order.
217
(2) BUDGETS.—Each order shall require the
board established under the order to submit to the
Secretary for approval a budget of its anticipated
annual expenses and disbursements to be paid to ad-
minister the order. The budget shall be submitted
before the beginning of a fiscal year and as fre-
quently as may be necessary after the beginning of
the fiscal year. Each order shall also require that the
Secretary be reimbursed for all expenses incurred by
the Secretary in the implementation, administration,
and supervision of the order, including all referenda
costs incurred in connection with the order.
(3) INCURRING EXPENSES.—A board may incur
the expenses described in paragraph (2) and other
expenses for the administration, maintenance, and
functioning of the board as authorized by the Sec-
retary.
(4) PAYING
EXPENSES.—Expenses incurred
under paragraph (3) shall be paid by a board using
assessments collected under section 607, earnings
obtained from assessments, and other income of the
board. Any funds borrowed by the board shall be ex-
pended only for start-up costs and capital outlays.
(5) LIMITATION
ON
SPENDING.—For fiscal
years beginning three or more years after the date
218
of the establishment of a board, the board may not
expend for administration (except for reimburse-
ments to the Secretary required under paragraph
(2)), maintenance, and functioning of the board in
a fiscal year an amount that exceeds 15 percent of
the assessment and other income received by the
board for the fiscal year.
(f) CONTRACTS AND AGREEMENTS.—
(1) IN
GENERAL.—Each order shall provide
that, with the approval of the Secretary, the board
established under the order may—
(A) enter into contracts and agreements to
carry out generic promotion, research, and in-
formation activities relating to the agricultural
commodity covered by the order, including con-
tracts and agreements with producer associa-
tions or other entities as considered appropriate
by the Secretary; and
(B) may pay the cost of approved generic
promotion, research, and information activities
using assessments collected under section 607,
earnings obtained from assessments, and other
income of the board.
219
(2) REQUIREMENTS.—Each contract or agree-
ment shall provide that any person who enters into
the contract or agreement with the board shall—
(A) develop and submit to the board a pro-
posed activity together with a budget that speci-
fies the cost to be incurred to carry out the ac-
tivity;
(B) keep accurate records of all of its
transactions relating to the contract or agree-
ment;
(C) account for funds received and ex-
pended in connection with the contract or
agreement;
(D) make periodic reports to the board of
activities conducted under the contract or
agreement; and
(E) make such other reports, as the board
or the Secretary considers relevant.
(g) RECORDS OF BOARD.—
(1) IN GENERAL.—Each order shall require the
board established under the order—
(A) to maintain such records as the Sec-
retary may require and to make the records
available to the Secretary for inspection and
audit;
220
(B) to collect and submit to the Secretary,
at any time the Secretary may specify, any in-
formation the Secretary may request; and
(C) to account for the receipt and dis-
bursement of all funds in the possession, or
under the control of, the board.
(2) AUDITS.—Each order shall require the
board established under the order to have—
(A) its records audited by an independent
auditor at the end of each fiscal year; and
(B) a report of the audit submitted di-
rectly to the Secretary.
(h) PERIODIC EVALUATION.—Each order shall re-
quire the board established under the order to provide for
the independent evaluation of all generic promotion, re-
search, and information activities undertaken under the
order, at such the intervals as the Secretary shall pre-
scribe. Such evaluations, or summaries thereof, shall be
made available to the public. The costs of preparing and
disseminating the evaluations or summaries shall be paid
from assessments collected under section 607.
(i) BOOKS AND RECORDS OF PERSONS COVERED BY
ORDER.—
(1) IN
GENERAL.—Each order shall require
that producers, first handlers and other persons in
221
the marketing chain as appropriate, and importers
covered by the order shall—
(A) maintain records sufficient to ensure
compliance with the order and regulations;
(B) submit to the board established under
the order any information required by the board
to carry out its responsibilities under the order;
and
(C) make the records available, during nor-
mal business hours, for inspection by employees
or agents of the board or the Department, in-
cluding any records necessary to verify informa-
tion required under subparagraph (A).
(2) TIME REQUIREMENT.—Any record required
under paragraph (1) to be maintained shall be main-
tained for such time period as the Secretary may
prescribe.
(3) OTHER INFORMATION.—The Secretary may
use, and may authorize the board to use under this
title, information regarding persons subject to an
order that is accumulated by the Department under
any other law.
(4) CONFIDENTIALITY OF INFORMATION.—
(A) IN
GENERAL.—Except as otherwise
provided in this title, all information obtained
222
under paragraph (1) or as part of a referendum
under section 611 shall be kept confidential by
all officers, employees, and agents of the De-
partment and of the board.
(B) DISCLOSURE.—Information referred to
in subparagraph (A) may be disclosed only if—
(i) the Secretary considers the infor-
mation relevant; and
(ii) the information is revealed in a
judicial proceeding or administrative hear-
ing brought at the direction or on the re-
quest of the Secretary or to which the Sec-
retary or any officer of the Department is
a party.
(C) OTHER EXCEPTIONS.—This paragraph
shall not be construed to prohibit the issuance
of general statements based upon reports or on
information relating to a number of persons
subject to an order if the statements do not re-
veal the information furnished by the person, or
the publication, by direction of the Secretary, of
the name of any person violating any order and
a statement of the particular provisions of the
order violated by the person.
223
(D) PENALTY.—Any person who willfully
violates the provisions of this subsection shall
be subject, on conviction, to a fine of not more
than $1,000 or to imprisonment for not more
than 1 year, or both.
(5) WITHHOLDING
INFORMATION.—This sub-
section shall not be construed to authorize the with-
holding of information from Congress.
SEC. 606. PERMISSIVE TERMS IN ORDERS.
(a) EXEMPTIONS.—An order issued under this title
may contain authority for the Secretary to exempt from
the order any de minimis quantity of an agricultural com-
modity otherwise covered by the order and authority for
the board established under the order to require satisfac-
tory safeguards against improper use of the exemption.
(b) DIFFERENT PAYMENT AND REPORTING SCHED-
ULES.—An order issued under this title may contain au-
thority for the board established under the order to des-
ignate different payment and reporting schedules to recog-
nize differences in agricultural commodity industry mar-
keting practices and procedures used in different produc-
tion and importing areas.
(c) ACTIVITIES.—An order issued under this title
may contain authority to develop and carry out research,
promotion, and information activities designed to expand,
224
improve, or make more efficient the marketing or use of
the agricultural commodity covered by the order in domes-
tic and foreign markets. Section 605(e) shall apply with
respect to activities authorized under this subsection.
(d) RESERVE FUNDS.—An order issued under this
title may contain authority to reserve funds from assess-
ments collected under section 607 to permit an effective
and continuous coordinated program of research, pro-
motion and information in years when the yield from as-
sessments may be reduced, except that the amount of
funds reserved may not exceed the greatest aggregate
amount of the anticipated disbursements specified in
budgets approved under section 605 by the Secretary for
any two fiscal years.
(e) CREDITS.—An order issued under this title may
contain authority to provide credits of assessments for
those individuals who contribute to other similar generic
research, promotion and information programs at the
State, regional, or local level.
(f) ASSESSMENT
OF IMPORTS.—An order issued
under this title may contain authority for the board estab-
lished under the order to assess under section 607 an im-
ported agricultural commodity, or products of such an ag-
ricultural commodity, at a rate comparable to the rate de-
225
termined by the appropriate board for the domestic agri-
cultural commodity covered by the order.
(g) OTHER AUTHORITY.—An order issued under this
title may contain authority to take any other action that—
(1) is not inconsistent with the purpose of this
title, any term or condition specified in section 605,
any rule issued to carry out this title; and
(2) is necessary to administer the order.
SEC. 607. ASSESSMENTS.
(a) ASSESSMENTS AUTHORIZED.—While an order is-
sued under this title is in effect with respect to a agricul-
tural commodity, assessments shall be—
(1) paid with respect to the agricultural com-
modity produced and marketed in the United States;
and
(2) paid with respect to the agricultural com-
modity imported into the United States, if the im-
ported agricultural commodity is covered by the
order pursuant to section 606(f).
(b) COLLECTION.—Assessments required under an
order shall be remitted to the board established under the
order at the time and in the manner prescribed by the
order.
(c) LIMITATION ON ASSESSMENTS.—Not more than
one assessment may be levied under subsection (a) with
226
respect to any agricultural commodity handled or im-
ported.
(d) ASSESSMENT RATES.—The board shall rec-
ommend to the Secretary one or more rates of assessment
to be levied under subsection (a). If approved by the Sec-
retary, the rates shall take effect. An order may provide
that an assessment rate may not be increased unless ap-
proved by a referendum conducted pursuant to section
611.
(e) LATE-PAYMENT AND INTEREST CHARGES.—
(1) IN GENERAL.—Late-payment and interest
charges may be levied on each person subject to an
order who fails to remit an assessment in accordance
with subsection (b).
(2) RATE.—The rate for the charges shall be
specified by the Secretary.
(f) INVESTMENT OF ASSESSMENTS.—Pending dis-
bursement of assessments under a budget approved by the
Secretary, a board may invest assessments collected under
this section in—
(1) obligations of the United States or any
agency thereof;
(2) general obligations of any State or any po-
litical subdivision thereof;
227
(3) interest-bearing accounts or certificates of
deposit of financial institutions that are members of
the Federal Reserve system; or
(4) obligations fully guaranteed as to principal
and interest by the United States.
(g) REFUND OF ASSESSMENTS FROM ESCROW AC-
COUNT.—
(1) ESCROW ACCOUNT.—During the period be-
ginning on the effective date of an order and ending
on the date the Secretary announces the results of
a referendum that is conducted under section
611(b)(1) with respect to the order, the board estab-
lished under the order shall—
(A) maintain an escrow account of the
kind described in subsection (f)(3) to be used to
refund assessments; and
(B) deposit funds in the account in accord-
ance with paragraph (2).
(2) AMOUNT
TO
BE
DEPOSITED.—The board
shall deposit in the account 10 percent of the assess-
ments collected during the period referred to in
paragraph (1).
(3) RIGHT TO RECEIVE REFUND.—Subject to
paragraphs (4), (5), and (6), persons subject to an
228
order shall receive a refund of assessments collected
during the period referred to in paragraph (1) if—
(A) the assessments were remitted on be-
half of the person; and
(B) the order is not approved in the ref-
erendum.
(4) FORM OF DEMAND.—A person subject to an
order shall make the demand for a refund at such
time and in such form as specified by the order.
(5) PAYMENT OF REFUND.—A person entitled
to a refund shall be paid promptly after the board
receives satisfactory proof that the assessment for
which the refund is demanded was paid on behalf of
the person who makes the demand.
(6) PRORATION.—If the funds in the escrow ac-
count required by paragraph (1) are insufficient to
pay the amount of all refunds that persons subject
to an order otherwise would have a right to receive
under this subsection, the board shall prorate the
amount of the funds among all the persons.
(7) CLOSING
OF
ESCROW
ACCOUNT.—If the
order is approved in a referendum conducted under
section 611(b)(1)—
(A) the escrow account shall be closed; and
229
(B) the funds shall be available to the
board for disbursement as authorized in the
order.
SEC. 608. PETITION AND REVIEW OF ORDERS.
(a) PETITION.—
(1) IN GENERAL.—A person subject to an order
issued under this title may file with the Secretary a
petition—
(A) stating that the order, any provision of
the order, or any obligation imposed in connec-
tion with the order, is not established in accord-
ance with law; and
(B) requesting a modification of the order
or an exemption from the order.
(2) HEARING.—The Secretary shall give the pe-
titioner an opportunity for a hearing on the petition,
in accordance with regulations issued by the Sec-
retary.
(3) RULING.—After the hearing, the Secretary
shall make a ruling on the petition. The ruling shall
be final, subject to review as set forth in subsection
(b).
(4) LIMITATION
ON
PETITION.—Any petition
filed under this subsection challenging an order, any
provision of the order, or any obligation imposed in
230
connection therewith, must be filed within two years
of the effective date of the order, provision, or obli-
gation subject to challenge in the petition.
(b) REVIEW.—
(1) COMMENCEMENT OF ACTION.—The district
court of the United States for any district in which
a person who is a petitioner under subsection (a) re-
sides or carries on business shall have jurisdiction to
review the final ruling on the petition of the person,
if a complaint for that purpose is filed not later than
20 days after the date of the entry of the final rul-
ing by the Secretary under subsection (a)(3).
(2) PROCESS.—Service of process in a proceed-
ing may be made on the Secretary by delivering a
copy of the complaint to the Secretary.
(3) REMANDS.—If the court determines that
the ruling is not in accordance with law, the court
shall remand the matter to the Secretary with direc-
tions—
(A) to make such ruling as the court deter-
mines to be in accordance with law; or
(B) to take such further action as, in the
opinion of the court, the law requires.
(c) EFFECT ON ENFORCEMENT PROCEEDINGS.—The
pendency of a petition filed under subsection (a) or an
231
action commenced under subsection (b) shall not operate
as a stay of any action authorized by section 609 to be
taken to enforce this title, including any rule, order, or
penalty in effect under this title.
SEC. 609. ENFORCEMENT.
(a) JURISDICTION.—The district courts of the United
States shall have jurisdiction specifically to enforce, and
to prevent and restrain a person from violating, an order
or regulation issued under this title.
(b) REFERRAL TO ATTORNEY GENERAL.—A civil ac-
tion authorized to be brought under this section shall be
referred to the Attorney General for appropriate action,
except that the Secretary is not required to refer to the
Attorney General a violation of this title if the Secretary
believes that the administration and enforcement of this
title would be adequately served by providing a suitable
written notice or warning to the person who committed
the violation or by an administrative action under this sec-
tion.
(c) CIVIL PENALTIES AND ORDERS.—
(1) CIVIL PENALTIES.—A person who willfully
violates an order or regulation issued by the Sec-
retary under this Act may be assessed by the Sec-
retary a civil penalty of not less than $1,000 and not
more than $10,000 for each violation.
232
(2) SEPARATE OFFENSE.—Each violation and
each day during which there is a failure to comply
with an order or regulation issued by the Secretary
shall be considered to be a separate offense.
(3) CEASE-AND-DESIST
ORDERS.—In addition
to, or in lieu of, a civil penalty, the Secretary may
issue an order requiring a person to cease and desist
from violating the order or regulation.
(4) NOTICE AND HEARING.—No order assessing
a penalty or cease-and-desist order may be issued by
the Secretary under this subsection unless the Sec-
retary provides notice and an opportunity for a hear-
ing on the record with respect to the violation.
(5) FINALITY.—An order assessing a penalty or
a cease-and-desist order issued under this subsection
by the Secretary shall be final and conclusive unless
the person against whom the order is issued files an
appeal from the order with the United States court
of appeals, as provided in subsection (d).
(d) REVIEW BY COURT OF APPEALS.—
(1) IN GENERAL.—A person against whom an
order is issued under subsection (c) may obtain re-
view of the order by—
233
(A) filing, not later than 30 days after the
person receives notice of the order, a notice of
appeal in—
(i) the United States court of appeals
for the circuit in which the person resides
or carries on business; or
(ii) the United States Court of Ap-
peals for the District of Columbia Circuit,
and
(B) simultaneously sending a copy of the
notice of appeal by certified mail to the Sec-
retary.
(2) RECORD.—The Secretary shall file with the
court a certified copy of the record on which the
Secretary has determined that the person has com-
mitted a violation.
(3) STANDARD OF REVIEW.—A finding of the
Secretary under this section shall be set aside only
if the finding is found to be unsupported by substan-
tial evidence on the record.
(e) FAILURE TO OBEY ORDERS.—A person who fails
to obey a valid cease-and-desist order issued by the Sec-
retary under this section, after an opportunity for a hear-
ing, shall be subject to a civil penalty assessed by the Sec-
retary of not less than $1,000 and not more than $10,000
234
for each offense. Each day during which the failure contin-
ues shall be considered to be a separate violation of the
order.
(f) FAILURE TO PAY PENALTIES.—If a person fails
to pay a civil penalty imposed under this section by the
Secretary, the Secretary shall refer the matter to the At-
torney General for recovery of the amount assessed in the
district court of the United States for any district in which
the person resides or carries on business. In the action,
the validity and appropriateness of the order imposing the
civil penalty shall not be subject to review.
(g) ADDITIONAL REMEDIES.—The remedies provided
in this section shall be in addition to, and not exclusive
of, other remedies that may be available.
SEC. 610. INVESTIGATIONS AND POWER TO SUBPOENA.
(a) INVESTIGATIONS.—The Secretary may make such
investigations as the Secretary considers necessary—
(1) for the effective administration of this title;
or
(2) to determine whether any person subject to
this title has engaged, or is about engage, in any ac-
tion that constitutes or will constitute a violation of
this title or any order or regulation issued under this
title.
235
(b) SUBPOENAS, OATHS, AND AFFIRMATIONS.—For
the purpose of any investigation under subsection (a), the
Secretary may administer oaths and affirmations, sub-
poena witnesses, compel the attendance of witnesses, take
evidence, and require the production of any records or doc-
uments that are relevant to the inquiry. The attendance
of witnesses and the production of records or documents
may be required from any place in the United States.
(c) AID OF COURTS.—In the case of contumacy by,
or refusal to obey a subpoena issued to, any person, the
Secretary may invoke the aid of any court of the United
States within the jurisdiction of which the investigation
or proceeding is carried on, or where the person resides
or carries on business, in order to require the attendance
and testimony of the person or the production of records
or documents. The court may issue an order requiring the
person to appear before the Secretary to produce records
or documents or to give testimony regarding the matter
under investigation.
(d) CONTEMPT.—Any failure to obey the order of the
court may be punished by the court as a contempt of the
court.
(e) PROCESS.—Process in any case under this section
may be served in the judicial district in which the person
236
resides or carries on business or wherever the person may
be found.
SEC. 611. REFERENDA.
(a) INITIAL REFERENDUM.—
(1) OPTIONAL REFERENDUM.—For the purpose
of ascertaining whether the persons to be covered by
an order favor the order going into effect, the order
may provide for the Secretary to conduct an initial
referendum among those persons to be subject to an
assessment under section 607 who, during a rep-
resentative period determined by the Secretary, en-
gaged in—
(A) the production or handling of the agri-
cultural commodity covered by the order; or
(B) the importation of the agricultural
commodity.
(2) PROCEDURE.—The results of the referen-
dum shall be determined in accordance with sub-
section (c). The Secretary may require that the agri-
cultural commodity industry involved post a bond or
other collateral to cover the cost of the referendum.
(b) REQUIRED REFERENDA.—
(1) 
IN
GENERAL.—For 
the 
purpose 
of
ascertaining whether the persons covered by an
order favor the continuation, suspension, or termi-
237
nation of the order, the Secretary shall conduct a
referendum among persons subject to such assess-
ments who, during a representative period deter-
mined by the Secretary, have engaged in—
(A) the production or handling of the agri-
cultural commodity covered by the order; or
(B) the importation of the agricultural
commodity.
(2) TIME FOR REFERENDUM.—The referendum
shall be conducted not later than 36 months after
assessments first begin under the order.
(3) EXCEPTION.—This subsection shall not
apply if an initial referendum was conducted under
subsection (a).
(c) SUBSEQUENT REFERENDA.—The Secretary shall
conduct a subsequent referendum not later than 7 years
after assessments first begin under the order, or at the
request of the board established under the order, or at
the request of 10 percent or more of the number of per-
sons eligible to vote under subsection (b)(1), to determine
if the persons favor the continuation, suspension or termi-
nation of the order.
(d) OTHER REFERENDA.—The Secretary may con-
duct a referendum at any time in order to determine
whether the continuance, suspension, or termination of the
238
order or a provision thereof is favored by persons eligible
to vote under subsection (b)(1).
(e) APPROVAL OF ORDER.—An order may provide for
its approval in a referendum—
(1) by a majority of those persons voting;
(2) by persons voting who represent a majority
of the volume of the agricultural commodity; or
(3) by a majority of those persons voting who
represent a majority of the volume of the agricul-
tural commodity.
(f) COSTS OF REFERENDA.—The board established
under an order with respect to which a referendum is con-
ducted under this section shall reimburse the Secretary
for any expenses incurred by the Secretary to conduct the
referendum.
(g) MANNER OF CONDUCTING REFERENDA.—
(1) IN
GENERAL.—A referendum conducted
under this section shall be conducted in the manner
determined by the Secretary to be appropriate.
(2) ADVANCE REGISTRATION.—If the Secretary
determines that an advance registration of eligible
voters in a referendum is necessary before the voting
period in order to facilitate the conduct of the ref-
erendum, the Secretary may institute the advance
registration procedures by mail, or in person
239
through the use of national and local offices of the
Department.
(3) VOTING.—Eligible voters may vote by mail
ballot in the referendum or in person if so prescribed
by the Secretary.
(4) NOTICE.—Not later than 30 days before a
referendum is conducted under this section with re-
spect to an order, the Secretary shall notify the agri-
cultural commodity industry involved, in such man-
ner as determined by the Secretary, of the period
during which voting in the referendum will occur.
Such notice shall explain any registration and voting
procedures established under this subsection.
SEC. 612. SUSPENSION OR TERMINATION.
(a) MANDATORY SUSPENSION OR TERMINATION.—
The Secretary shall suspend or terminate an order or a
provision of an order whenever the Secretary finds that
an order or a provision of an order obstructs or does not
tend to effectuate the purpose of this title, or whenever
the Secretary determines that the order or a provision of
an order is not favored by those voting in referenda con-
ducted under section 611.
(b) SUSPENSION OR TERMINATION.—If, as a result
of referenda conducted under section 611, the Secretary
240
determines that an order is not approved, the Secretary
shall—
(1) not later than 180 days after making the
determination, suspend or terminate, as the case
may be, collection of assessments under the order;
and
(2) as soon as practicable, suspend or termi-
nate, as the case may be, activities under the order
in an orderly manner.
SEC. 613. AMENDMENTS TO ORDERS.
The provisions of this title applicable to an order shall
be applicable to amendments to an order, except that the
provisions of section 611 shall not apply to amendments.
SEC. 614. EFFECT ON OTHER LAWS.
This title shall not be construed to affect or preempt
any other Federal or State law authorizing promotion or
research relating to an agricultural commodity.
SEC. 615. REGULATIONS.
The Secretary may issue the regulations as may be
necessary to carry out the provisions of this title and the
power vested in the Secretary under this title.
SEC. 616. AUTHORIZATION OF APPROPRIATIONS.
(a) IN GENERAL.—There are authorized to be appro-
priated such sums as may be necessary to carry out this
title.
241
(b) LIMITATION ON EXPENDITURES FOR ADMINIS-
TRATIVE EXPENSES.—Funds appropriated to carry out
this title may not be expended for the payment of expenses
incurred by a board to administer an order.
TITLE VII—MISCELLANEOUS
PROVISIONS
Subtitle A—General Conservation
Provisions
SEC. 701. CLARIFICATION OF EFFECT OF RESOURCE PLAN-
NING ON ALLOCATION OR USE OF WATER.
(a) NATIONAL FOREST SYSTEM RESOURCE PLAN-
NING.—Section 6 of the Forest and Rangeland Renewable
Resources Planning Act of 1974 (16 U.S.C. 1604) is
amended by adding at the end the following new sub-
section:
‘‘(n) LIMITATION ON AUTHORITY.—Nothing in this
section shall be construed to supersede, abrogate or other-
wise impair any right or authority of a State to allocate
quantities of water (including boundary waters). Nothing
in this section shall be implemented, enforced, or con-
strued to allow any officer or agency of the United States
to utilize directly or indirectly the authorities established
under this section to impose any requirement not imposed
by the State which would supersede, abrogate, or other-
wise impair rights to the use of water resources allocated
242
under State law, interstate water compact, or Supreme
Court decree, or held by the United States for use by a
State, its political subdivisions, or its citizens. No water
rights arise in the United States or any other person
under the provisions of this Act.’’.
(b) AUTHORIZATION TO GRANT RIGHTS-OF-WAY.—
Section 501 of the Federal Land Policy and Management
Act of 1976 (43 U.S.C. 1761) is amended as it applies
to the Secretary of Agriculture—
(1) in subsection (c)(1)—
(A) by striking subparagraph (B);
(B) in subparagraph (D), by striking
‘‘originally constructed’’;
(C) in subparagraph (G), by striking
‘‘1996’’ and inserting ‘‘1998’’; and
(D) by redesignating subparagraphs (C)
through (G) as subparagraphs (B) through (F),
respectively;
(2) in subsection (c)(3)(A), by striking the sec-
ond and third sentences; and
(3) by adding at the end the following new sub-
section:
‘‘(e) EFFECT ON VALID EXISTING RIGHTS.—Not-
withstanding any provision of this section, the Secretary
of Agriculture may not require, as a condition of, or in
243
connection with, the renewal of a right-of-way under this
section, a restriction or limitation on the operation, use,
repair, or replacement of an existing water supply facility
which is located on or above National Forest lands or the
exercise and use of existing water rights, if such condition
would reduce the quantity of water which would otherwise
be made available for use by the owner of such facility
or water rights, or cause an increase in the cost of the
water supply provided from such facility.’’.
SEC. 702. PAYMENT OF FILING FEES BY UNITED STATES IN
CONNECTION WITH WATER RIGHTS ADJU-
DICATIONS.
(a) PAYMENT OF FILING FEES.—Subsection (a) of
section 208 of the Act of July 10, 1952 (43 U.S.C. 666;
commonly referred to as the ‘‘McCarran Amendment’’),
is amended in the second sentence by striking ‘‘and (2)
shall’’ and inserting ‘‘(2) pay any filing fee that is assessed
against the United States as a claimant in a water rights
adjudication, is generally applicable to all such claimants,
and is used to pay administrative and judicial expenses
attributable to water rights adjudications, and (3)’’.
(b) APPLICATION
OF AMENDMENT.—The amend-
ments made by subsection (a) shall apply to any suit for
the adjudication of water rights under State law pending
244
on the date of the enactment of this Act or commenced
after such date.
SEC. 703. PROVISION OF TECHNICAL ASSISTANCE TO
STATE FORESTERS.
Effective September 30, 1996, section 5 of the Coop-
erative Forestry Assistance Act of 1978 (16 U.S.C.
2103a) is amended—
(1) by striking subsections (b) and (h); and
(2) by redesignating subsections (c), (d), (e),
(f), and (g) as subsections (b), (c), (d), (e), and (f),
respectively.
SEC. 704. REPEAL OF STATE TECHNICAL COMMITTEES.
(a) REPEAL.—Subtitle G of title XII of the Food Se-
curity Act of 1985 (16 U.S.C. 3861 and 3862) is repealed.
(b) CONFORMING AMENDMENT.—Section 1628 of the
Food, Agriculture, Conservation, and Trade Act of 1990
(7 U.S.C. 5831) is amended by striking ‘‘, subtitle G of
title XIV’’ both places it appears.
SEC. 705. REPEAL OF COMPOSTING RESEARCH AND EXTEN-
SION PROGRAM.
Section 1456 of the Food, Agriculture, Conservation,
and Trade Act of 1990 (7 U.S.C. 3130) is repealed.
245
SEC. 706. REPEAL OF FARMS FOR THE FUTURE ACT OF
1990.
The Farms for the Future Act of 1990 (chapter 2
of subtitle E of title XIV of Public Law 101–624; 7 U.S.C.
4201 note) is repealed.
SEC. 707. ADMINISTRATION OF ENVIRONMENTAL PRO-
GRAMS.
(a) REPEAL.—Subtitle F of the Food, Agriculture,
Conservation, and Trade Act of 1990 (7 U.S.C. 5401–
5403) is repealed.
(b) CONFORMING AMENDMENTS.—Such Act is fur-
ther amended—
(1) in section 1482(d) (7 U.S.C. 5502(d)), by
striking ‘‘in conjunction with the report required
under section 1473(c). The report’’ and inserting ‘‘,
which’’; and
(2) in section 1499(a) (7 U.S.C. 5506(a)), by
striking the last sentence.
SEC. 708. PRIVATE GRAZING LANDS CONSERVATION AS-
SISTANCE.
(a) ASSISTANCE AUTHORIZED.—The Secretary of
Agriculture shall establish a program to provide technical,
educational, and related assistance to owners of private
grazing land, managers of private grazing land, and local
conservation districts managing private grazing land, to
assist such owners and managers to voluntarily conserve
246
or enhance private grazing land. Assistance shall be pro-
vided only at the request of the owner or manager of the
private grazing land.
(b) PERSONNEL.—The Secretary shall make avail-
able sufficient personnel of the Natural Resources Con-
servation Service to deliver and coordinate the provision
of assistance under this section to owners and managers
of private grazing lands. Such personnel shall be trained
in pasture and range management.
(c) BUDGET PROPOSAL.—The budget of the Presi-
dent for a fiscal year submitted to Congress under section
1105 of title 31, United States Code, shall specify, as part
of the budget of the Department of Agriculture and the
Natural Resources Conservation Service, the amount re-
quested for that fiscal year to carry out this section.
(d) PRIVATE GRAZING LAND DEFINED.—For the
purpose of this section, the term ‘‘private grazing lands’’
means privately owned, State owned, tribal, and non-fed-
erally owned rangelands, pasturelands, grazed forestlands,
and haylands.
(e) AUTHORIZATION
OF APPROPRIATIONS.—There
are authorized to be appropriated to carry out this section
$20,000,000 for fiscal year 1996, $40,000,000 for fiscal
year 1997, and $60,000,000 for each fiscal year there-
after.
247
Subtitle B—Inspection
SEC. 721. FEDERAL AND STATE COOPERATION UNDER FED-
ERAL MEAT INSPECTION ACT.
(a) REMOVAL OF INTRASTATE DISTRIBUTION LIMI-
TATION.—Subsection (a)(1) of section 301 of the Federal
Meat Inspection Act (21 U.S.C. 661) is amended by strik-
ing ‘‘solely for distribution within such State’’ at the end
of paragraph (1).
(b) USE OF STATE INSPECTORS.—Subsection (a) of
such section is amended by adding at the end the following
new paragraph:
‘‘(5) In addition to appointing inspectors under
section 21, the Secretary may enter into agreements
to utilize officers and employees of a State or the
District of Columbia to conduct such examinations,
investigations, and inspections authorized under this
Act as the Secretary determines practicable.’’.
(c) TERMINATION OF DESIGNATION OF STATE AS
SUBJECT
TO FEDERAL INSPECTION
FOR INTRASTATE
DISTRIBUTION.—Subsection (c)(3) of such section is
amended by striking ‘‘, with respect to the operations and
transactions within such State which are regulated under
subparagraph (1), he’’ and inserting ‘‘with respect to all
establishments within its jurisdiction which do not operate
under Federal inspection under title I and at which any
248
cattle, sheep, swine, goats, or equines are slaughtered for
use as human food (or their carcasses or parts or products
thereof are prepared for use as human food), and with
respect to the distribution of carcasses, parts thereof,
meat, or meat food products of such animals within the
States, the Secretary’’.
(d) EXPANSION
OF STATE INSPECTION AUTHOR-
ITY.—Such section is further amended—
(1) by redesignating subsection (d) as sub-
section (e); and
(2) by inserting after subsection (c) the follow-
ing new subsection:
‘‘(d)(1) Except as provided in paragraph (2), car-
casses, parts of carcasses, meat, and meat food products
of cattle, sheep, swine, goats, or equines prepared under
State inspection in any State (other than a State des-
ignated under subsection (c)) in compliance with the meat
inspection law of the State shall be eligible for sale or
transportation in interstate commerce, and for entry into
and use in the preparation of products in establishments
at which Federal inspection is maintained under title I,
in the same manner and to the same extent as products
prepared at such establishments.
249
‘‘(2) State inspected articles described in paragraph
(1), and federally inspected articles prepared (in whole or
in part) from such State inspected articles—
‘‘(A) shall not be eligible for sale or transpor-
tation in foreign commerce; and
‘‘(B) shall be separated at all times from all
other federally inspected articles in any federally in-
spected establishment that engages in the prepara-
tion, sale, or transportation of carcasses, parts of
carcasses, meat, or meat food products, for foreign
commerce.
‘‘(3) All carcasses, parts of carcasses, meat, and meat
food products that are inspected in a program of inspec-
tion in a State (other than a State designated under sub-
section (c)) pursuant to State law shall be identified as
so inspected only by official marks that identify the State
and are such design as the State shall prescribe. Federally
inspected articles prepared (in whole or in part) from such
State inspected articles shall be identified as so inspected
only by the same official marks as prescribed by the Sec-
retary for articles slaughtered or prepared under title I.
‘‘(4) Except as provided in paragraph (5), the opera-
tor of an establishment operated under Federal or State
inspection who wishes to transfer to State or Federal in-
250
spection, as the case may be, may do so only on October
1 of any year. Such transfer shall occur only if—
‘‘(A) the operator provides written notice of the
intention to transfer to both inspection agencies at
least six months in advance of that date; and
‘‘(B) the Secretary determines that the transfer
will effectuate the purposes set forth in section 2
and will not adversely affect the stability of the total
State and Federal inspection systems.
‘‘(5) The Secretary may permit the operator of an
establishment to transfer from State to Federal inspection
at any time if the operator presents clear and convincing
evidence to the Secretary that the establishment intends
to, and will be able to, engage in foreign commerce to a
substantial extent in a manner which would require Fed-
eral inspection.
‘‘(6) For purposes of this subsection, the term ‘inter-
state commerce’ means commerce between States or be-
tween a State and the District of Columbia.’’.
(e) PROHIBITION ON ADDITIONAL OR DIFFERENT
STATE REQUIREMENTS.—Section 408 of such Act (21
U.S.C. 678) is amended to read as follows:
‘‘SEC. 408. PREEMPTION.
‘‘(a) PREMISES, FACILITIES AND OPERATIONS.—Re-
quirements within the scope of this Act with respect to
251
premises, facilities and operations of any establishment at
which inspection is provided under title I, which are in
addition to, or different than those made under this Act
may not be imposed by any State or Territory or the Dis-
trict of Columbia. However, any such jurisdiction may im-
pose recordkeeping and other requirements within the
scope of section 202, if consistent with such section, with
respect to any such establishment.
‘‘(b) MARKING, LABELING, PACKAGING, AND INGRE-
DIENTS.—(1) Except as provided in paragraph (2), mark-
ing, labeling, packaging, or ingredient requirements in ad-
dition to (or different than) those made under this Act
may not be imposed by any State or Territory or the Dis-
trict of Columbia with respect to articles prepared at any
establishment under Federal inspection in accordance with
the requirements of title I or with respect to articles pre-
pared for commerce at any State inspected establishment
in accordance with the requirements of section 301(d).
‘‘(2) A State or territory or the District of Columbia
may, consistent with the requirements under this Act, ex-
ercise concurrent jurisdiction with the Secretary over arti-
cles distributed in commerce or otherwise subject to this
Act, for the purpose of preventing the distribution for
human food purposes of any such articles which are not
in compliance with the requirements under this Act and
252
are outside of any federally or State inspected establish-
ment, or in the case of imported articles, which are not
at such an establishment, after their entry into the United
States.
‘‘(c) OTHER MATTERS.—This Act shall not preclude
any State or Territory or the District of Columbia from
imposing a requirement or taking other action, consistent
with this Act, with respect to any other matters regulated
under this Act.’’.
SEC. 722. FEDERAL AND STATE COOPERATION UNDER THE
POULTRY PRODUCTS INSPECTION ACT.
(a) REMOVAL OF INTRASTATE DISTRIBUTION LIMI-
TATION.—Subsection (a)(1) of section 5 of the Poultry
Products Inspection Act (21 U.S.C. 454) is amended by
striking ‘‘solely for distribution within such State’’ at the
end of paragraph (1).
(b) USE OF STATE INSPECTORS.—Subsection (a) of
such section is amended by adding at the end the following
new paragraph:
‘‘(5) The Secretary may enter into agreements
to utilize officers and employees of a State or the
District of Columbia to conduct such examinations,
investigations, and inspections authorized under this
Act as the Secretary determines practicable.’’.
253
(c) TERMINATION OF DESIGNATION OF STATE AS
SUBJECT
TO FEDERAL INSPECTION
FOR INTRASTATE
DISTRIBUTION.—Subsection (c)(3) of such section is
amended by striking ‘‘, with respect to the operations and
transactions within such State which are regulated under
subparagraph (1) of this paragraph (c), he’’ and inserting
‘‘with respect to all establishments within its jurisdiction
which do not operate under Federal inspection under this
Act and at which any poultry are slaughtered, or any poul-
try products are processed, for use as human food, and
with respect to the distribution of poultry products within
the States, the Secretary’’.
(d) EXPANSION
OF STATE INSPECTION AUTHOR-
ITY.—Such section is further amended—
(1) by redesignating subsection (d) as sub-
section (e); and
(2) by inserting after subsection (c) the follow-
ing new subsection:
‘‘(d)(1) Except as provided in paragraph (2), poultry
products processed under State inspection in any State
(other than a State designated under subsection (c)) in
compliance with the poultry products inspection law of the
State shall be eligible for sale or transportation in inter-
state commerce, and for entry into and use in the prepara-
tion of products in establishments at which Federal in-
254
spection is maintained under this Act, in the same manner
and to the same extent as poultry products processed at
such establishments. Poultry products complying with the
requirements of the poultry product inspection laws of the
State (other than a State designated under subsection (c))
in which the products were processed shall be considered
as complying with this Act.
‘‘(2) State inspected poultry products described in
paragraph (1), and federally inspected poultry products
processed (in whole or in part) from such State inspected
poultry products—
‘‘(A) shall not be eligible for sale or transpor-
tation in foreign commerce; and
‘‘(B) shall be separated at all times from all
other federally inspected poultry products in any
federally inspected establishment that engages in the
processing, sale, or transportation of poultry prod-
ucts for foreign commerce.
‘‘(3) All poultry products that are inspected in a pro-
gram of inspection in a State (other than a State des-
ignated under subsection (c)) pursuant to State law shall
be identified as so inspected only by official marks that
identify the State and are such design as the State shall
prescribe. Federally inspected poultry products processed
(in whole or in part) from such State inspected poultry
255
products shall be identified as so inspected only by the
same official marks as prescribed by the Secretary for
poultry products processed under this Act (other than this
section or section 11).
‘‘(4) Except as provided in paragraph (5), the opera-
tor of an establishment operated under Federal or State
inspection who wishes to transfer to State or Federal in-
spection, as the case may be, may do so only on October
1 of any year. Such transfer shall occur only if—
‘‘(A) the operator provides written notice of the
intention to transfer to both inspection agencies at
least six months in advance of that date; and
‘‘(B) the Secretary determines that the transfer
will effectuate the legislative policy set forth in sec-
tion 3 and will not adversely affect the stability of
the total State and Federal inspection systems.
‘‘(5) The Secretary may permit the operator of an
establishment to transfer from State to Federal inspection
at any time if the operator presents clear and convincing
evidence to the Secretary that the establishment intends
to, and will be able to, engage in foreign commerce to a
substantial extent in a manner which would require Fed-
eral inspection.
256
‘‘(6) For purposes of this subsection, the term ‘inter-
state commerce’ means commerce between States or be-
tween a State and the District of Columbia.’’.
(e) PROHIBITION ON ADDITIONAL OR DIFFERENT
STATE REQUIREMENTS.—Section 23 of such Act (21
U.S.C. 467e) is amended to read as follows:
‘‘SEC. 23. PREEMPTION.
‘‘(a) PREMISES, FACILITIES AND OPERATIONS.—Re-
quirements within the scope of this Act with respect to
premises, facilities and operations of any official establish-
ment, which are in addition to, or different than those
made under this Act may not be imposed by any State
or territory or the District of Columbia. However, any
such jurisdiction may impose recordkeeping and other re-
quirements within the scope of section 11(b), if consistent
with such section, with respect to any such establishment.
‘‘(b) MARKING, LABELING, PACKAGING, AND INGRE-
DIENTS.—(1) Except as provided in paragraph (2), mark-
ing, labeling, packaging, or ingredient requirements in ad-
dition to (or different than) those made under this Act
may not be imposed by any State or territory or the Dis-
trict of Columbia with respect to articles prepared at any
establishment under Federal inspection in accordance with
the requirements of this Act or with respect to articles
prepared for commerce at any State inspected establish-
257
ment in accordance with the requirements of section 5(d).
Further storage or handling requirements found by the
Secretary to unduly interfere with the free flow of poultry
products in commerce shall not be imposed by any State
or territory or the District of Columbia.
‘‘(2) A State or territory or the District of Columbia
may, consistent with the requirements of this Act, exercise
concurrent jurisdiction with the Secretary over articles
distributed in commerce or otherwise subject to this Act,
for the purpose of preventing the distribution for human
food purposes of any such articles which are not in compli-
ance with the requirements of this Act and are outside
of any federally or State inspected establishment, or in
the case of imported articles, which are not at such an
establishment, after their entry into the United States.
‘‘(c) OTHER MATTERS.—This Act shall not preclude
any State or territory or the District of Columbia from
making requirements or taking other action, consistent
with this Act, with respect to any other matters regulated
under this Act.’’.
SEC. 723. ESTABLISHMENT OF SAFE MEAT AND POULTRY
INSPECTION PANEL.
(a) ESTABLISHMENT OF PANEL.—The Federal Meat
Inspection Act (21 U.S.C. 601 et seq.) is amended by add-
ing at the end the following new section:
258
‘‘SEC. 411. SAFE MEAT AND POULTRY INSPECTION PANEL.
‘‘(a) ESTABLISHMENT.—There is hereby established
in the Department of Agriculture a permanent advisory
panel to be known as the ‘Safe Meat and Poultry Inspec-
tion Panel’.
‘‘(b) PURPOSE.—The Safe Meat and Poultry Inspec-
tion Panel shall review, evaluate, and make comments and
recommendations in the form of a report to the Secretary
on the adequacy, necessity, safety, cost-effectiveness, and
scientific merit of the following:
‘‘(1) Inspection procedures of, and work rules
and worker relations involving Federal employees
employed in, plants inspected under this Act.
‘‘(2) Informal petitions or proposals for changes
in inspection procedures, processes, and techniques
of plants inspected under this Act.
‘‘(3) Formal changes in meat inspection regula-
tions, either in notice, proposed, or final form, pro-
mulgated by virtue of authority granted by this Act
and within the time limits prescribed for formal
comments on such changes.
‘‘(4) Such other matters as may be referred to
the panel by the Secretary regarding the quality or
effectiveness of a safe and cost-effective meat inspec-
tion system under this Act.
259
‘‘(c) COMPOSITION OF PANEL.—The Safe Meat and
Poultry Inspection Panel shall be composed of 7 members,
not less than 5 of which members shall be from the food,
meat, and poultry science profession, appointed to stag-
gered terms not to exceed three years by the Secretary
from nominations received from the National Institutes of
Health and the American Meat Science Association and
based upon the professional qualifications of the nominees.
‘‘(d) NOMINATIONS.—In constituting the original
Safe Meat and Poultry Inspection Panel, the Secretary
shall initially solicit 6 nominees from the National Insti-
tutes of Health and 6 nominees from the American Meat
Science Association for membership on the panel. Any
subsequent vacancy on the panel shall be filled by the Sec-
retary after soliciting 2 nominees from the National Insti-
tutes of Health and 2 nominees from the American Meat
Science Association. Nominees shall have a background in
public health issues and a scientific expertise in food,
meat, and poultry sciences or in veterinary science. The
Secretary may require nominees to submit such additional
information as the Secretary may deem necessary prior
to completing the selection process. Should any list of
nominees provided under this subsection be unsatisfactory,
the Secretary may request an additional set of nominees
from the nominating entities.
260
‘‘(e) COMPENSATION.—Each member of the panel
shall receive per diem compensation at a rate not in excess
of that fixed for GS–18 of the General Schedule as may
be determined by the Secretary, except that any such
member who holds another office or position under the
Federal Government the compensation of which exceeds
such rate may elect to receive compensation at the rate
provided for such other office or position in lieu of the
compensation provided by this subsection.
‘‘(f) CONFLICT OF INTEREST.—The Secretary shall
promulgate regulations regarding conflicts of interest with
respect to the members of the panel.
‘‘(g) PUBLICATION IN FEDERAL REGISTER.—Any re-
port of the panel to the Secretary shall be published in
the Federal Register.
‘‘(h) SECRETARIAL RESPONSE.—Within 90 days of
the publication of a panel report under this section, the
Secretary shall publish in the Federal Register any re-
sponse required of the Secretary to that report.
‘‘(i) FUNDING.—From funds available to the Sec-
retary, the Secretary shall allocate such sums as may be
necessary to carry out this section.’’.
(b) CROSS REFERENCE IN POULTRY PRODUCTS IN-
SPECTION ACT.—The Poultry Products Inspection Act
261
(21 U.S.C. 451 et seq.) is amended by adding at the end
thereof the following new section:
‘‘SEC. 30. SAFE MEAT AND POULTRY INSPECTION PANEL.
‘‘The advisory panel known as the ‘Safe Meat and
Poultry Inspection Panel’ established in section 411 of the
Federal Meat Inspection Act shall also review, evaluate
and make comments and recommendations in the form of
a report to the Secretary on the adequacy, necessity, safe-
ty, cost-effectiveness, and scientific merit of the following:
(1) Inspection procedures of, and work rules
and worker relations involving Federal employees
employed in, plants inspected under this Act.
(2) Informal petitions or proposals for changes
in inspection procedures, processes, or techniques of
plants inspected under this Act.
(3) Formal changes in poultry inspection regu-
lations, either in notice, proposed, or final form, pro-
mulgated by virtue of authority granted by this Act
and within the time limits prescribed for formal
comments on such changes.
(4) Such other matters as may be referred to
the panel by the Secretary regarding the quality or
effectiveness of a safe and cost-effective poultry in-
spection system under this Act.’’.
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