HR 3242 RDS 
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.
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(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.
HR 3242 RDS 
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.
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(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.
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(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-
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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;