Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘Specialty Crops Com-
petitiveness Act of 2004’’.
SEC. 2. FINDINGS AND PURPOSE.
(a) FINDINGS.—Congress finds the following:
(1) A secure domestic food supply is a national
security imperative for the United States.
(2) A competitive specialty crop industry in the
United States is necessary for the production of an
abundant, affordable supply of highly nutritious
fruits, vegetables, and other specialty crops, which
are vital to the health and well-being of all Ameri-
cans.
(3) Increased consumption of specialty crops
will provide tremendous health and economic bene-
fits to both consumers and specialty crop growers.
(4) Specialty crop growers believe that there are
numerous areas of Federal agriculture policy that
could be improved to promote increased consumption
of specialty crops and increase the competitiveness
of producers in the efficient production of affordable
specialty crops in the United States.
(5) As the globalization of markets continues, it
is becoming increasingly difficult for United States
producers to compete against heavily subsidized for-
eign producers in both the domestic and foreign
markets.
(6) United States specialty crop producers also
continue to face serious tariff and non-tariff trade
barriers in many export markets.
(b) PURPOSE.—It is the purpose of this Act to make
necessary changes in Federal agriculture policy to accom-
plish the goals of increasing fruit, vegetable, and nut con-
sumption and improving the competitiveness of United
States specialty crop producers.
SEC. 3. DEFINITIONS.
In this Act:
(1) The term ‘‘specialty crop’’ means fruits and
vegetables, tree nuts, dried fruits, and nursery crops
(including floriculture).
(2) The term ‘‘State’’ means the several States,
the District of Columbia, and the Commonwealth of
Puerto Rico.
(3) The term ‘‘State department of agriculture’’
means the agency, commission, or department of a
State government responsible for agriculture within
the State.
TITLE I—STATE ASSISTANCE
FOR SPECIALTY CROPS
SEC. 101. SPECIALTY CROP BLOCK GRANTS.
(a) AVAILABILITY AND PURPOSE OF GRANTS.—Sub-
ject to the appropriation of funds to carry out this section,
the Secretary of Agriculture shall make grants to States
for each of the fiscal years 2005 through 2009 to be used
by State departments of agriculture solely to enhance the
competitiveness of specialty crops.
(b) GRANTS BASED ON VALUE OF PRODUCTION.—
Subject to subsection (c), the amount of the grant for a
fiscal year to a State under this section shall bear the
same ratio to the total amount appropriated pursuant to
the authorization of appropriations in subsection (i) for
that fiscal year as the value of specialty crop production
in the State during the preceding calendar year bears to
the value of specialty crop production during the preceding
calendar year in all States whose application for a grant
for that fiscal year is accepted by the Secretary under sub-
section (f).
(c) MINIMUM GRANT AMOUNT.—Subject to the ap-
propriation of sufficient funds to carry out this subsection,
each State shall receive at least $100,000 each fiscal year
as a grant under this section notwithstanding the amount
calculated under subsection (b) for the State.
(d) ELIGIBILITY.—To be eligible to receive a grant
under this section, a State department of agriculture shall
prepare and submit, for approval by the Secretary of Agri-
culture, an application at such time, in such a manner,
and containing such information as the Secretary shall re-
quire by regulation, including—
(1) a State plan that meets the requirements of
subsection (e);
(2) an assurance that the State will comply
with the requirements of the plan; and
(3) an assurance that grant funds received
under this section shall supplement the expenditure
of State funds in support of specialty crops grown
in that State, rather than replace State funds.
(e) PLAN REQUIREMENTS.—The State plan shall
identify the lead agency charged with the responsibility of
carrying out the plan and indicate how the grant funds
will be utilized to enhance the competitiveness of specialty
crops.
(f) REVIEW OF APPLICATION.—In reviewing the ap-
plication of a State submitted under subsection (d), the
Secretary of Agriculture shall ensure that the State plan
would carry out the purpose of grant program, as specified
in subsection (a). The Secretary may accept or reject ap-
plications for a grant under this section.
(g) EFFECT OF NONCOMPLIANCE.—If the Secretary
of Agriculture, after reasonable notice to a State, finds
that there has been a failure by the State to comply sub-
stantially with any provision or requirement of the State
plan, the Secretary may disqualify, for one or more years,
the State from receipt of future grants under this section.
(h) AUDIT REQUIREMENTS.—For each year that a
State receives a grant under this section, the State shall
conduct an audit of the expenditures of grant funds by
the State. Not later than 30 days after the completion of
the audit, the State shall submit a copy of the audit to
the Secretary of Agriculture.
(i) AUTHORIZATION OF APPROPRIATIONS.—For each
of the fiscal years 2005 through 2009, there is authorized
to be appropriated to the Secretary of Agriculture
$44,500,000 to make grants under this section.
TITLE II—SPECIALTY CROP
ADVANCEMENT
SEC. 201. TECHNICAL ASSISTANCE FOR SPECIALTY CROPS.
For each of the fiscal years 2005 through 2009, there
is authorized to be appropriated to the Secretary of Agri-
culture $2,000,000 to carry out section 3205 of the Farm
Security and Rural Investment Act of 2002 (7 U.S.C.
5680). Amounts appropriated pursuant to this authoriza-
tion of appropriations shall be in addition to any other
funds made available to carry out such section.
SEC. 202. REDUCTION IN BACKLOG OF AGRICULTURAL EX-
PORT PETITIONS.
(a) REDUCTION EFFORTS.—To the maximum extent
practicable, the Secretary of Agriculture shall endeavor to
reduce the backlog in the number of applications for per-
mits for the export of United States agricultural commod-
ities. In achieving such reduction, the Secretary shall not
dilute or diminish existing personnel resources that are
currently managing sanitary and phytosanitary issues
for—
(1) United States agricultural commodities for
which exportation is sought; and
(2) interdiction and control of pests and dis-
eases, including for the evaluation of pest and dis-
ease concerns of foreign agricultural commodities for
which importation is sought.
(b) REPORT.—The Secretary of Agriculture shall
submit to the Committee on Agriculture of the House of
Representatives and the Committee on Agriculture, Nutri-
tion, and Forestry of the Senate an annual report speci-
fying, for the year covered by the report—
(1) the total number of applications processed
to completion;
(2) the number of backlog applications proc-
essed to completion;
(3) the percentage of backlog applications proc-
essed to completion; and
(4) the number of backlog applications remain-
ing.
SEC. 203. REPORT ON SANITARY AND PHYTOSANITARY EX-
PORT ISSUES.
Not later than 180 days after the date of the enact-
ment of this Act, the Secretary of Agriculture shall submit
to the Committee on Agriculture of the House of Rep-
resentatives and the Committee on Agriculture, Nutrition,
and Forestry of the Senate a report on significant sanitary
and phytosanitary issues that affect the export of specialty
crops.
TITLE III—SPECIALTY CROP
RESEARCH
SEC. 301. METHYL BROMIDE ALTERNATIVES.
(a) PRIORITY.—The Secretary of Agriculture shall
elevate the priority of current methyl bromide alternative
research and extension activities and reexamine the risks
and benefits of extending the phase-out deadline in effect
on the date of the enactment of this Act, including the
estimated cost to the grower or processor associated with
any alternatives proposed.
research, extension, and economics programs affecting the
specialty crop industry.
‘‘(b) MEMBERS.—Individuals who are not members
of the Advisory Board may be appointed as members of
the specialty crops committee. Members of the specialty
crops committee shall serve at the discretion of the execu-
tive committee.
‘‘(c) ANNUAL COMMITTEE REPORT.—Not later than
180 days after the establishment of the specialty crops
committee, and annually thereafter, the specialty crops
committee shall submit to the Advisory Board a report
containing the findings of its study under subsection (a).
The specialty crops committee shall include in each report
recommendations regarding the following:
‘‘(1) Measures designed to improve the effi-
ciency, productivity, and profitability of specialty
crop production in the United States.
‘‘(2) Measures designed to improve competitive-
ness in research, extension, and economics programs
affecting the specialty crop industry.
‘‘(3) Programs that would—
‘‘(A) enhance the quality and shelf-life of
fresh fruits and vegetables, including their taste
and appearance;
‘‘(B) develop new crop protection tools and
expand the applicability and cost-effectiveness
of integrated pest management;
‘‘(C) prevent the introduction of foreign
invasive pests and diseases;
‘‘(D) develop new products and new uses
of specialty crops;
‘‘(E) develop new and improved marketing
tools for specialty crops;
‘‘(F) enhance food safety regarding spe-
cialty crops;
‘‘(G) improve mechanization of production
practices; and
‘‘(H) enhance irrigation techniques used in
specialty crop production.
‘‘(d) CONSIDERATION BY SECRETARY.—In preparing
the annual budget recommendations for the Department
of Agriculture, the Secretary shall take into consideration
those findings and recommendations contained in the
most-recent report of the specialty crops committee that
are adopted by the Advisory Board.
‘‘(e) ANNUAL REPORT BY SECRETARY.—In the budg-
et material submitted to Congress by the Secretary in con-
nection with the budget submitted pursuant to section
1105 of title 31, United States Code, for a fiscal year,
the Secretary shall include a report describing how the
Secretary addressed each recommendation of the specialty
crops committee described in subsection (d).’’.
TITLE IV—PEST AND DISEASE
RESPONSE FUND
SEC. 401. PEST AND DISEASE RESPONSE FUND.
(a) ESTABLISHMENT.—There is established on the
books of the Treasury an account to be known as the
‘‘Pest and Disease Response Fund’’. There shall be depos-
ited into the Fund any proceeds received by the Secretary
of Agriculture as reimbursement for services provided by
the Secretary using amounts in the Fund.
(b) AVAILABILITY.—Amounts in the Fund shall re-
main available until expended.
(c) USE OF FUND.—In implementing the Animal
Health Protection Act (7 U.S.C. 8301 et seq.) and the
Plant Protection Act (7 U.S.C. 7701 et seq.), the Sec-
retary of Agriculture shall have complete discretion re-
garding the use of amounts in the Fund to support emer-
gency eradication and research activities in response to
economic and health threats posed by pests and diseases
affecting agricultural commodities.
(d) AUTHORIZATION
OF
APPROPRIATIONS.—For
each of the fiscal years 2005 through 2009, there is au-
thorized to be appropriated to the Secretary of Agriculture
$1,000,000 for deposit in the Fund.
SEC. 402. IMPORT AND EXPORT REGULATION REVIEW.
(a) PEER REVIEW.—The Secretary of Agriculture
shall enter into an agreement with the National Plant
Board to obtain a peer review of the procedures and stand-
ards that govern the consideration of import and export
requests under section 412 of the Plant Protection Act
(7 U.S.C. 7712). The peer review shall be consistent with
the guidance by the Office of Management and Budget
pertaining to peer review and information quality.
(b) ELEMENTS OF REVIEW.—The peer review re-
quired by subsection (a) shall address, at a minimum—
(1) the preparation of risk assessments; and
(2) the sufficiency, type, and quality of data
that should be submitted to the Secretary of Agri-
culture.
(c) SUBMISSION OF RESULTS.—The results of the
peer review conducted under subsection (a) shall be sub-
mitted to the Secretary and Congress not later than 180
days after the date of the enactment of this Act.
SEC. 403. MAINTENANCE OF FREDERICKSBURG INSPEC-
TION TRAINING CENTER.
For each of the fiscal years 2005 through 2009, there
is authorized to be appropriated to the Secretary of Agri-
culture $1,500,000 for the maintenance of the Agricul-
tural Marketing Service inspection training center in
Fredericksburg, Virginia.
Passed the House of Representatives October 7 (leg-
islative day, October 6), 2004.
Attest:
Clerk.