Native Latex Commercialization and Economic Development Act
PL 95-592 (S.1816), enacted 11/04/1978

PUBLIC LAW 95-592—NOV. 4, 1978 
92 STAT. 2529 
Public Law 95-592 
95th Congress 
An Act 
To amend the Public Works and Economic Development Act of 1965 to authorize 
a program of research, development, and demonstration of guayule rubber 
production and manufacture as an economic development opportunity for the 
Southwestern States. 
Be it enacted hy the Senate and House of Representatives of the 
United States of America in Congress assembled^ That this Act may 
be cited as the "Native Latex Commercialization and Economic Devel-
opment Act of 1978". 
SEC. 2. (a) Congress recognizes that natural latex rubber is a com-
modity of vital importance to the economy, the defense, and the general 
well-being of the Nation. The United States is totally dependent upon 
foreign sources for its supplies of natural (Hevea) latex, which total 
about one million tons per year. Synthetic rubber, manufactured from 
petroleum feedstocks, cannot be substituted for natural rubber. 
(b) Congress further recognizes that certain plant species of the 
genus Parthenium (Guayule), native to Texas and the Republic of 
Mexico, as well as other plants, are known to contain commercial 
quantities of extractable rubber. During World War II, through 
research carried out by the Secretary of Agriculture in the Emergency 
Rubber Project, the United States demonstrated that Parthenium 
latex is a promising and realistic substitute for Hevea latex. 
(c) Congress further recognizes that additional research and devel-
opment are needed, especially into methods for increasing latex yields, 
before commercialization of native Parthenium latex or other 
hydrocarbon-containing plants by private industry is feasible. 
(d) Congress further recognizes that the development of a domestic 
natural rubber industry, based on Parthenium and other hydrocarbon-
containing plants, would not only relieve the Nation's dependence 
upon foreign latex sources but also convey substantial economic bene-
fits to peoples living in arid and semiarid regions of the United States. 
Such an industry would comprise the agricultural production of the 
hydrocarbon-containing plants and the development of commercial 
processing and manufacturing facilities to extract the latex and other 
products. 
(e) Congress further recognizes that ongoing research into the com-
mercialization of native latex has been conducted by the Department 
of Agriculture and by the Department of Commerce through the 
regional commissions and that these research efforts should be con-
tinued and expanded. 
(f) It is the policy of the Congress, therefore, to provide for the 
development and demonstration of economically feasible means of 
culturing and manufacturing Parthenium and other hydrocarbon-
containing plants for the extraction of natural rubber and other 
products to benefit the Nation and promote economic development. 
SEC. 3. As used in this Act— 
(a) The term "State" means each of the fifty States, the District 
of Columbia, and the Commonwealth of Puerto Rico. 
(b) The term "Secretaries" means the Secretary of Agriculture 
and/or the Secretary of Commerce acting each separately or jointly. 
Nov. 4, 1978 
[S. 1816J 
Native Latex 
Commercialization 
and Economic 
Development Act 
of 1978. 
7 u s e 178 note. 
7 u s e 178. 
Definitions. 
7 u s e 178a. 
92 STAT. 2530 
PUBLIC LAW 95-592—NOV. 4, 1978 
42 u s e 3181. 
Joint Commission 
on Guayule 
Research and 
Commercialization, 
7 u s e 178b. 
Functions. 
Report to 
Congress. 
(c) The term "commercialization" means the stage in the develop-
ment or advancement of a technology at which point private enterprise 
is willing to invest in a full-scale production facility. 
(d) The term "native" means-hydrocarbon-containing plants which 
may be cultured in North America, especially members of the genus 
Parthenium known as Guayule. 
(e) "Regional Commissions" means the Regional Action Planning 
Commissions established pursuant to title V of the Public Works and 
Economic Development Act of 1965. 
SEC. 4. (a) There is hereby established a Joint Commission on 
Guayule Research and Commercialization, hereinafter referred to as 
the Joint Commission. The function of the Joint Commission shall 
be to assist the Secretarias in carrying out the purposes of this Act. 
(b) The Joint Commission shall consist of the following members: 
Three individuals designated by the Secretary of Agriculture from 
among the staff of his Department; three individuals designated by 
the Secretary of Commerce at least two of whom shall be Federal 
Cochairmen of Regional Commissions engaged in the support of nati"\^o 
latex research, development, demonstration, or commercialization 
activities and one of whom shall be selected from among the members 
of his Department; a representative of the Bureau of Indian Affairs 
of the Department of the Interior; and a representative of the National 
Science Foundation. 
(c) The Joint Commission shall be headed by a Chairman. The 
Secretary of Agriculture shall designate one of the two members from 
his Department to serve as Joint Commission Chairman during the 
first two-year period following the enactment of this Act, and the 
Secretary of Commerce shall designate one of the two members froni 
his Department as Joint Commission Chairman during the second 
two-year period following the enactment of this Act. And the same 
process of designating Joint Commission Chairmen shall be followed 
in ensuing years. 
(d) The Secretaries may delegate to the Joint Commission one or 
more of their responsibilities under this Act and transfer to the Joint 
Commission funds appropriated to carry out the purposes of this Act 
as they deem appropriate to achieve the purposes of this Act, and the 
Joint Commission is authorized to carry out such functions and expend 
such funds to achieve the purposes of the Act. 
(e) The Joint Commission shall— 
(1) develop a plan establishing goals, timetables, and tasks to 
be undertaken in carrying out the purposes of this Act; 
(2) establish broad policy for implementing the plan carrying 
out the purposes of this Act; 
(3) establish criteria for evaluating and awarding contracts 
for research, development, and demonstration projects; and 
(4) review and advise the Secretaries with respect to grants, 
contracts, and other project expenditures. 
(f) The Secretaries are authorized to provide without reimburse-
ment such administrative support services, including the detail of staff 
personnel not to exceed a total of five persons from each Department, 
as the Joint Commission may need to carry out its functions. 
(g) One year after the enactment of this Act, and each year there-
after, the Joint Commission shall provide to the Congress a report on 
the implementation of the Act. Such report shall (1) recommend spe-
cific directions for further research, development, and other work, and 
(2) recommend funding levels for various elements of the overall 
project. 
PUBLIC LAW 95-592—NOV. 4, 1978 
92 STAT. 2531 
(h) To the maximum extent possible, the Secretaries and the Joint 
Commission shall seek the advice of the scientific, engineering and 
business communities with respect to the activities carried out under 
this Act. The Secretaries and the Commission shall specifically seek 
the advice of persons with expertise in appropriate fields of a^icul-
tural research in land grant colleges and other universities, in State 
agricultural experiment stations, and in other appropriate organiza-
tions ; and, persons with expertise in rubber manufacturing and com-
merce in private enterprise and other appropriate organizations. 
SEC. 5. The Secretary of Agriculture shall conduct, sponsor, pro- 7 USC 178c. 
mote, and coordinate basic and applied research, technology develop-
ment, and technology transfer leading to effective and economical 
methods for large-scale culturing of plantations and the extraction of 
latex from Parthenium or other hydrocarbon-containing plants. Such 
research shall include, but not be limited to— 
(a) carrying out extensive seed collections from wild plants in 
Texas, Mexico, and other areas and borrowing or purchasing seeds 
from other sources; 
(b) developing a stockpile of Parthenium seeds, such stockpile 
to be appropriately classified and stored at a suitable facility; 
(c) carrying out breeding and selection programs for the pur-
pose of improving latex yields, expanding insect and disease 
resistance, and broadening the ranges of drought and cold toler-
ance of the Parthenium plant; 
(d) establishing a system of experimental plantings in arid 
and semiarid regions of the United States having suitable climatic 
and soil conditions for the culture of Parthenium; 
(e) carrying out specific studies on the effects of irrigation on 
plant growth and latex yield and survival potential; 
(f) developing equipment needed to carry out nursery opera-
tions, planting, cultivating, harvesting, transporting the crop, and 
other necessary agricultural activities; 
(g) further refining present extraction technologies and future 
extraction technologies, including technologies which utilize solar 
energy; and 
(h) establishing and maintaining a bank of all pertinent 
Data bank, 
research data on native latex including extant United States Gov- establishment, 
ernment publications and records from the emergency rubber 
•project. Such data shall be made available to other Federal and 
State agencies and private persons who are interested or involved 
in native latex research, development, or manufacture. 
SEC. 6. The Secretary of Commerce is authorized and directed to 7 USC 178d. 
initiate and carry out research, technology development, technology 
transfer, and demonstration projects to test and demonstrate the eco-
nomic feasibility of the manufacture and commercialization of natural 
rubber from Parthenium or other hydrocarbon-containing plants. 
Such research may be carried out through the Eegional Commissions 
or otherwise and shall include but not be limited to— 
(a) conducting research and development on extraction and 
processing techniques; 
(b) economic analysis of the production of native latex, includ-
ing usable byproducts; 
(c) studying the environmental, social, and economic impacts 
of the commercial development of native latex; 
92 STAT. 2532 
PUBLIC LAW 95-592—NOV. 4, 1978 
Cooperative 
projects with 
Mexico. 
7 use 178e. 
7 use 178f. 
7 use 178g. 
Grants. 
(d) evaluating the commercial marketability of Parthenium 
and rubber derived from other hydrocarbon-containing plants; 
(e) further refining present extraction and manufacturing tech-
nologies and future extraction and manufacturing technologies, 
including technologies which utilize solar energy; and 
(f) developing pertinent material and records on manufactur-
ing of natural rubber which shall be available to other Federal 
and State agencies and private persons who are interested in or 
involved in natural rubber development, or manufacture. 
SEC. 7. The Secretaries, in consultation with the Secretary of State, 
are authorized and encouraged to enter into cooperative projects with 
the Government of Mexico in order to accomplish appropriate aspects 
of the research and development provided for in this Act. Such coop-
erative projects should include, but not be limited to, projects to deter-
mine the economic feasibility of latex extraction and processing. 
SEC. 8. The Secretaries are authorized to accept financial or other 
assistance from any State or public agency to aid in carrying out the 
provisions of this Act and to enter into contracts with respect to such 
assistance and to enter into agreements with any State or public agency 
for the purpose of demonstrating, transferring, or applying results of 
research or methods of economic development relating to native latex. 
SEC. 9. In carrying out the provisions of this Act, the Secretary of 
Agriculture is authorized to— 
(a) make grants to States, education institutions, scientific 
organizations, and Indian tribes as defined in the Indian Self-
Determination and Education Assistance Act (Public Law 93-638, 
25 U.S.C. 450), and enter into contracts with such institutions and 
organizations and with industrial or engineering firms; 
(b) acquire the services of biologists, agronomists, foresters, 
geneticists, chemists, engineers, economists, and other personnel 
by contract or otherwise; 
(c) utilize the facilities of Federal and State scientific 
laboratories; 
(d) establish and operate necessary facilities and plantations 
to carry out the continuous research, testing, development, and 
programing necessary to effectuate the purposes of this Act; 
(e) acquire secret processes, technical data, inventions, patent 
applications, patents, licenses, land and interest in land (including 
water rights), facilities, and other property or rights by purchase, 
license, lease, or donation; 
(f) assemble and maintain pertinent and current literature and 
publications, patents and licenses, land and interests in land; 
(g) cause onsite inspections to be made of promising projects, 
domestic or foreign, and, in the case of projects located in the 
United States, cooperate and participate in their development 
when the Secretary determines that the purpose of this Act will 
be served thereby; 
(h) foster and participate in regional, national, and interna-
tional conferences relating to native latex culture; 
(i) coordinate, correlate, and publish information with a view 
to advancing the development of native latex technology; and 
(j) cooperate with other Federal departments and agencies, 
with State and local departments, agencies, and instrumentalities, 
and with interested persons, firms, institutions, and organizations. 
PUBLIC LAW 95-592—NOV. 4, 1978 
92 STAT. 2533 
SEC. 10. In carrying out the provisions of this section, the Secretary 
of Commerce, acting through the Regional Commissions or otherwise, 
is authorized to— 
(a) make grants to States, education institutions, scientific 
organizations, and Indian tribes as defined in the Indian Self-
Determination and Education Assistance Act (Public Law 93-638, 
25 U.S.C. 450), and enter into contracts with such institutions and 
organizations and with industrial or engineering firms; 
(b) acquire the services of biologists, agronomists, foresters, 
geneticists, engineers, economists, and other personnel by contract 
or otherwise; 
(c) utilize the facilities of Federal and State institutions and 
other scientific laboratories; 
(d) establish and operate necessary facilities and pilot plants 
to carry out the continuous research, testing, development, and 
programing necessary to effectuate the purposes of this section; 
(e) acquire secret processes, technical data, invention, patent 
applications, patents, licenses, land and interests in land (includ-
ing water rights), plants and facilities, and other property or 
rights by purchase, license, lease, or donation; and 
(f) foster and participate in regional, national, and interna-
tional conferences relating to natural rubber manufacture. 
SEC. 11. In carrying out the provisions of this Act, the Secretaries 
and the Joint Commission shall insure that their activities are closely 
coordinated with the activities of other Federal agencies such as the 
Department of the Interior, National Science Foundation, Bureau of 
Indian Affairs, Department of Energy, Department of Defense, Treas-
ury Department, Federal Preparedness Agency, and others in order 
to prevent duplication of effort, insure compatibility with ongoing 
programs and policies, and to fully exploit the opportunities inherent 
in the culture and manufacture of native latex. 
SEC. 12. Relative to the definitions of, title to, and licensing of inven-
tions made or conceived in the course of or under any contract or grant 
pursuant to this Act, and notwithstanding any other provisions of law, 
the provisions of sections 9 and 10 of the Federal Nonnuclear Energy 
Research 
and Development Act of 1974 (42 U.S.C. 5908-9) shall 
govern. 
SEC. 13, The Secretary of Agriculture and the Secretary of Com-
merce may dispose of any latex, resin, wax, pulp, and any other 
byproducts resulting from operations under this Act. All moneys 
received from dispositions under this section shall be paid into the 
Treasury as miscellaneous receipts. 
SEC. 14. The Secretary of Agriculture and the Secretary of Com-
merce may issue rules and regulations necessary to effectuate the pur-
poses of this Act. 
SEC. 15. The Secretary of Agriculture and the Secretary of Com-
merce shall submit to the President and the Congress, no later than 
December 31, 1980, and each year thereafter through 1982, a report on 
the status of the research, development, and other work underway 
under this Act. Such report shall (1) recommend specific directions 
for further research, development and other work, and (2) recommend 
funding levels for various elements of the overall project. 
7 use 178h. 
Grants. 
7 use 178i. 
eoordination of 
activities with 
Federal agencies. 
7 u s e 178j. 
7 u s e 178k. 
Rules and 
regulations. 
7 u s e 178Z. 
Report to 
President and 
eongress. 
7 u s e 178m. 
92 STAT. 2534 
PUBLIC LAW 95-592—NOV. 4, 1978 
Appropriation 
SEQ. 16. (a) There is authorized to be appropriated to the Secretary 
a"*i>;;if 
tion. 
of Agriculture $2,500,000 for each of the fiscal years ending Septem-
7 use 17811. 
^^j. 3
Q
^ -^QgQ^ ^^^ September 30, 1981, and $5,000,000 for each of the 
fiscal years ending September 30, 1982, and September 30, 1983, to 
carry out the purposes of this Act. Funds appropriated under this 
paragraph shall be available for obligation until the last day of the 
fiscal year after the year for which such funds are authorized. 
(b) There is authorized to be appropriated to the Secretary of Com-
merce $2,500,000 for each of the fiscal years ending September 30,1980, 
and September 30,1981, and $
5
,
O
O
O
,
O
0
^
O for each of the fiscal years end-
ing September 30, 1982, and September 30,1983, to carry out the pur-
poses of this Act. Funds appropriated under this paragraph shall be 
available for obligation until the last day of the fiscal year after the 
year for which such funds are authorized. 
(c) No more than 3 per centum of funds authorized under subsec-
tions (a) and (b) shall be available for administration and manage-
ment of the program. 
(d) Notwithstanding any other provision of this Act the authority 
to enter into contracts shall be effective for any fiscal year only to such 
extent or in such amounts as are provided in appropriations Acts. 
SEC. 17. Section 320 of the Agricultural Adjustment Act of 1938 
as added by the Act of September 3, 1974 (88 Stat. 1089; 7 U.S.C. 
1314f) is amended by adding a new sentence at the end thereof as fol-
lows: "Notwithstanding any other provision of law, no marketing 
quota penalties shall be assessed as a result of the marketing of 1976 
crop Maryland tobacco (Type 32) which was determined through the 
application of the Federal Standards of Inspection and Identification 
of quota types to be Burley tobacco (Type 31) under the provisions of 
this section.". 
Approved November 4, 1978. 
LEGISLATIVE HISTORY: 
HOUSE REPORT No. 95-1512, Pts. I and II, accompanying H.R. 12559 (Comm. on 
Science and Technology and Comm. on Agriculture). 
SENATE REPORT No. 95-829 (Comm. on Environment and Public Works). 
CONGRESSIONAL RECORD, Vol. 124 (1978): 
May 26, considered and passed Senate. 
Sept. 19, H.R. 12559 considered and passed House; passage vacated and 
S. 1816, amended, passed in lieu. 
Oct. 7, Senate concurred in House amendment with an amendment. 
Oct. 14, House concurred in Senate amendment with an amendment. 
Oct. 15, Senate concurred in House amendment.