To amend the country-of origin labeling requirements of the Agricultural Marketing Act of 1946 to specify the model upon which the certification program for producers shall be based, to facilitate verification of compliance with the requirements, to impose a schedule of penalties for violation of the requirements, and for other purposes.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Country of Origin Labeling Amendment 
Act of 2003''.

SEC. 2. REVISED COUNTRY OF ORIGIN LABELING REQUIREMENTS.

    The Agricultural Marketing Act of 1946 is amended by striking 
subtitle D (7 U.S.C. 1638 et seq.) and inserting the following new 
subtitle:

                ``Subtitle D--Country of Origin Labeling

``SEC. 281. DEFINITIONS.

    ``In this subtitle:
            ``(1) Beef.--The term `beef' means meat produced from 
        cattle (including veal).
            ``(2) Covered commodity.--
                    ``(A) In general.--The term `covered commodity' 
                means--
                            ``(i) muscle cuts of beef, lamb, and pork;
                            ``(ii) ground beef, ground lamb, and ground 
                        pork;
                            ``(iii) farm-raised fish;
                            ``(iv) wild fish;
                            ``(v) a perishable agricultural commodity; 
                        and
                            ``(vi) peanuts.
                    ``(B) Exclusions.--The term `covered commodity' 
                does not include an item described in subparagraph (A) 
                if the item is an ingredient in a processed food item.
            ``(3) Farm-raised fish.--The term `farm-raised fish' 
        includes--
                    ``(A) farm-raised shellfish; and
                    ``(B) fillets, steaks, nuggets, and any other flesh 
                from a farm-raised fish or shellfish.
            ``(4) Food service establishment.--The term `food service 
        establishment' means a restaurant, cafeteria, lunch room, food 
        stand, saloon, tavern, bar, lounge, or other similar facility 
        operated as an enterprise engaged in the business of selling 
        food to the public. The term may include a retailer, but only 
        to the extent that the retailer provides a salad bar or 
        prepared-food bar containing ready-to-eat food that the 
        consumer packages for purchase.
            ``(5) Lamb.--The term `lamb' means meat, other than mutton, 
        produced from sheep.
            ``(6) Perishable agricultural commodity; retailer.--The 
        terms `perishable agricultural commodity' and `retailer' have 
        the meanings given the terms in section 1(b) of the Perishable 
        Agricultural Commodities Act of 1930 (7 U.S.C. 499a(b)).
            ``(7) Pork.--The term `pork' means meat produced from hogs.
            ``(8) Secretary.--The term `Secretary' means the Secretary 
        of Agriculture, acting through the Agricultural Marketing 
        Service.
            ``(9) Wild fish.--
                    ``(A) In general.--The term `wild fish' means 
                naturally born or hatchery-raised fish harvested in the 
                wild and shellfish harvested in the wild.
                    ``(B) Inclusions.--The term `wild fish' includes a 
                fillet, steak, nugget, and any other flesh from wild 
                fish or shellfish.
                    ``(C) Exclusions.--The term `wild fish' excludes 
                netpen aquacultural or other farm-raised fish.

``SEC. 282. NOTICE OF COUNTRY OF ORIGIN.

    ``(a) Notice of Country of Origin Required.--Except as provided in 
subsection (c), a retailer of a covered commodity shall inform 
consumers, at the final point of sale of the covered commodity to 
consumers, of the country of origin of the covered commodity.
    ``(b) United States Country of Origin.--A retailer of a covered 
commodity may designate the covered commodity as having a United States 
country of origin only if the covered commodity--
            ``(1) in the case of beef, is exclusively from an animal 
        that is exclusively born, raised, and slaughtered in the United 
        States (including from an animal exclusively born and raised in 
        Alaska or Hawaii and transported for a period not to exceed 60 
        days through Canada to the United States and slaughtered in the 
        United States);
            ``(2) in the case of lamb and pork, is exclusively from an 
        animal that is exclusively born, raised, and slaughtered in the 
        United States;
            ``(3) in the case of farm-raised fish, is hatched, raised, 
        harvested, and processed in the United States;
            ``(4) in the case of wild fish--
                    ``(A) is harvested in the United States or a 
                territory of the United States, if the wild fish is 
                harvested in a river, stream, or lake; or
                    ``(B) is harvested by a vessel that is documented 
                under chapter 121 of title 46, United States Code, or 
                registered in the United States, if the wild fish is 
                harvested at sea; and
            ``(5) in the case of a perishable agricultural commodity or 
        peanuts, is exclusively produced in the United States.
            ``(6) Wild fish and farm-raised fish.--The notice of 
        country of origin for wild fish and farm-raised fish shall 
        distinguish between wild fish and farm-raised fish.
    ``(c) Exemption for Food Service Establishments.--Subsection (a) 
shall not apply to a covered commodity if the covered commodity is--
            ``(1) prepared or served in a food service establishment; 
        and
            ``(2)(A) offered for sale or sold at the food service 
        establishment in normal retail quantities; or
            ``(B) served to consumers at the food service 
        establishment.
    ``(d) Method of Notification.--
            ``(1) In general.--The information required by subsection 
        (a) may be provided to consumers by means of a label, stamp, 
        mark, placard, or other clear and visible sign on the covered 
        commodity or on the package, display, holding unit, or bin 
        containing the commodity at the final point of sale to 
        consumers.
            ``(2) Labeled commodities.--If the covered commodity is 
        already individually or otherwise labeled for retail sale 
        regarding country of origin, the retailer shall not be required 
        to provide any additional information to comply with this 
        section.
    ``(e) Use of Existing Records to Verify Compliance.--The Secretary 
shall use existing records, such as inventory and tax records, to 
verify that any person that prepares, stores, handles, or distributes a 
covered commodity for retail sale complies with this subtitle, 
including the regulations promulgated under section 284(b). Such 
records may be maintained at the point of sale or at a centralized 
distribution center.
    ``(f) Information on Country of Origin.--Any person engaged in the 
business of supplying a covered commodity to a retailer shall provide 
information to the retailer indicating the country of origin of the 
covered commodity.
    ``(g) Certification of Origin.--
            ``(1) Certification program.--The Secretary shall carry out 
        a program that provides for the self-certification by producers 
        of the country of origin of covered commodities. In 
        establishing the program, the Secretary shall use as a model 
        the procedures contained in part 589.2000 of title 21, Code of 
        Federal Regulations, regarding animal proteins prohibited in 
        ruminant feed.
            ``(2) Third party audits.--Except as provided in paragraph 
        (3), the Secretary shall prohibit any third party audit or 
        verification of producer compliance with country of origin 
        labeling.
            ``(3) Verification.--To verify producer compliance with 
        country of origin requirements under the certification program, 
        the Secretary shall use Department of Agriculture records of 
        imports and existing producer records, such as tax records, 
        sale receipts, brand records, feed bills, birth records, 
        receiving records, breeding stock records, health records, or 
        animal inventory records.
    ``(h) Producer Protection.--A retailer or other person subject to 
this section may not require, as a condition of the purchase of beef, 
lamb, or pork or of live cattle, hogs, or sheep from a producer or 
packer, that the producer or packer--
            ``(1) indemnify the retailer or other person from any 
        liability arising from a violation of this section; or
            ``(2) produce records or other documentation to verify the 
        country of origin of the beef, lamb, or pork or of the live 
        cattle, hogs, or sheep.

``SEC. 283. ENFORCEMENT.

    ``(a) In General.--Except as provided in subsections (b) and (c), 
section 253 shall apply to a violation of this subtitle in addition to 
violations of subtitle B.
    ``(b) Warnings.--If the Secretary determines that a retailer is in 
violation of section 282, the Secretary shall--
            ``(1) notify the retailer of the determination of the 
        Secretary; and
            ``(2) provide the retailer a 30-day period, beginning on 
        the date on which the retailer receives the notice under 
        paragraph (1) from the Secretary, during which the retailer may 
        take necessary steps to comply with section 282.
    ``(c) Civil Penalty.--If, on completion of the 30-day period 
described in subsection (b)(2), the Secretary determines that the 
retailer has willfully violated section 282, after providing notice and 
an opportunity for a hearing before the Secretary with respect to the 
violation, the Secretary may assess a civil penalty against the 
retailer in an amount of $100 for the first day of the violation. The 
civil penalty amount shall double for each subsequent day that the 
retailer is in noncompliance for the same violation, except that the 
total amount of the civil penalty assessed for a single violation may 
not exceed $5,000.
    ``(d) Adulteration and Misbranding.--The Secretary may not treat a 
covered commodity as either adulterated or misbranded under the Federal 
Meat Inspection Act (7 U.S.C. 601 et seq.) or any other provision of 
law by reason of the failure of the covered commodity to comply with 
the country of origin requirements of section 282.

``SEC. 284. REGULATIONS.

    ``(a) Regulations.--Not later than September 30, 2004, the 
Secretary shall promulgate such regulations as are necessary to 
implement this subtitle.
    ``(b) Partnerships With States.--In promulgating the regulations, 
the Secretary shall, to the maximum extent practicable, enter into 
partnerships with States with enforcement infrastructure to assist in 
the administration of this subtitle.

``SEC. 285. APPLICABILITY.

    ``This subtitle shall apply to the retail sale of a covered 
commodity beginning September 30, 2004.''.

Summary: Country of Origin Labeling Amendment Act of 2003 - Amends the Agricultural Marketing Act of 1946 to revise country of origin labeling provisions, including: (1) specifying the model certification of origin program; (2) specifying producer protections; (3) reducing maximum retailer fines; (4) prohibiting treatment of country of origin violations as adulteration or misbranding; and (5) extending the implementing guideline deadline.