United States Grain Standards Act Amendments of 1988
PL 100-518 (H.R.4345), enacted 10/24/1988

102 STAT. 2584 
PUBLIC LAW 100-518—OCT. 24, 1988 
Public Law 100-518 
100th Congress 
An Act 
Oct. 24, 1988 
[H.R. 4345] 
United States 
Grain 
Standards Act 
Amendments 
of 1988. 
7 u s e 71 note. 
Canada. 
To amend the United States Grain Standards Act to extend through September 30, 
1993, the authority contained in section 155 of the Omnibus Reconciliation Act of 
1981 and Public Law 98-469 to charge and collect inspection and weighing fees, and 
for other purposes. 
Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the "United States Grain Standards Act 
Amendments of 1988". 
SEC. 2. GRAIN STANDARDS ACT. 
Effective for the period October 1, 1988, through September 30, 
1993, inclusive, the United States Grain Standards Act is 
amended— 
(1) by amending subsection (j) of section 7 (7 U.S.C. 79(j)) to 
read as follows: 
"(j)(l) The Administrator shall, under such regulations as the 
Administrator may prescribe, charge and collect reasonable inspec-
tion fees to cover the estimated cost to the Service incident to the 
performance of official inspection except when the official inspection 
is performed by a designated official agency or by a State under a 
delegation of authority. The fees authorized by this subsection shall, 
as nearly as practicable and after taking into consideration any 
proceeds from the sale of samples, cover the costs of the Service 
incident to its performance of official inspection services in the 
United States and on United States grain in Canadian ports, includ-
ing administrative and supervisory costs related to such official 
inspection of grain. Such fees, and the proceeds from the sale of 
samples obtained for purposes of official inspection which become 
the property of the United States, shall be deposited into a fund 
which shall be available without fiscal year limitation for the 
expenses of the Service incident to providing services under this Act. 
(2) Each designated official agency and each State agency to 
which authority has been delegated under subsection (e) of this 
section shall pay to the Administrator fees in such amount as the 
Administrator determines fair and reasonable and as will cover the 
estimated costs incurred by the Service relating to supervision of 
official agency personnel and supervision by Service personnel of its 
field office personnel, except costs incurred under paragraph (3) of 
subsection (g) of this section and sections 9, 10, and 14 of this Act. 
The fees shall be payable after the services are performed at such 
times as specified by the Administrator and shall be deposited in the 
fund created in paragraph (1) of this subsection. Failure to pay the 
fee within thirty days after it is due shall result in automatic 
termination of the delegation or designation, which shall be re-
instated upon payment, within such period as specified by the 
Administrator, of the fee currently due plus interest and any fur-
PUBLIC LAW 100-518—OCT. 24, 1988 
102 STAT. 2585 
ther expenses incurred by the Service because of such termination. 
The interest rate on overdue fees shall be as prescribed by the 
Secretary, but not less than the current average market yield on 
outstanding marketable obligations of the United States of com-
parable maturity, plus an additional charge of not to exceed 1 per 
centum per annum as determined by the Secretary and adjusted to 
the nearest one-eighth of 1 per centum. 
"(3) Any sums collected or received by the Administrator under Securities, 
this Act and deposited to the fund created in paragraph (1) of this 
subsection and any late payment penalties collected by the 
Administrator and credited to such fund m.ay be invested by the 
Secretary in insured or fully collateralized, interest-bearing ac-
counts or, at the discretion of the Secretary, by the Secretary of the 
Treasury in United States Government debt instruments. The in-
terest earned on such sums and any late payment penalties col-
lected by the Administrator shall be credited to the fund and shall 
be available without fiscal year limitation for the expenses of the 
Service incident to providing services under this Act."; 
(2) by amending subsection (1) of section 7A (7 U.S.C. 79(a)(1)) 7 USC 79a. 
to read as follows: 
"(1)(1) The Administrator shall, under such regulations as the 
Administrator may prescribe, charge and collect reasonable fees to 
cover the estimated costs to the Service incident to the performance 
of the functions provided for under this section except as otherwise 
provided in paragraph (2) of this subsection. The fees authorized by 
this paragraph shall, as nearly as practicable, cover the costs of the 
Service incident to performance of its functions related to weighing, 
including administrative and supervisory costs directly related 
thereto. Such fees shall be deposited into the fund created in section 
7(j) of this Act. 
"(2) Each agency to which authority has been delegated under this 
section and each agency or other person which has been designated 
to perform functions related to weighing under this section shall pay 
to the Administrator fees in such amount as the Administrator 
determines fair and reasonable and as will cover the costs incurred 
by the Service relating to supervision of the agency personnel and 
supervision by Service personnel of its field office personnel in-
curred as a result of the functions performed by such agencies, 
except costs incurred under sections 7(g)(3), 9, 10, and 14 of this Act. 
The fees shall be payable after the services are performed at such 
times as specified by the Administrator and shall be deposited in the 
fund created in section 7(j) of this Act. Failure to pay the fee within 
thirty days after it is due shall result in automatic termination of 
the delegation or designation, which shall be reinstated upon pay-
ment, within such period as specified by the Administrator, of the 
fee currently due plus interest and any further expenses incurred by 
the Service because of such termination. The interest rate on over-
due fees shall be as prescribed by the Secretary, but not less than 
the current average market yield on outstanding marketable 
obligations of the United States of comparable maturity, plus an 
additional charge of not to exceed 1 per centum per annum as 
determined by the Secretary, and adjusted to the nearest one-eighth 
of 1 per centum."; 
(3) by adding before section 8 (7 U.S.C. 84) the following new 
section: 
102 STAT. 2586 
PUBLIC LAW 100-518—OCT. 24, 1988 
"LIMITATION ON ADMINISTRATIVE AND SUPERVISORY COSTS 
7 use 79d. 
"SEC. 7D. The total administrative and supervisory costs which 
may be incurred under this Act for inspection and weighing (exclud-
ing standardization, compliance, and foreign monitoring activities) 
for each of the fiscal years 1989 through 1993 shall not exceed 40 per 
centum of the total costs for such activities carried out by the 
Service for such year."; 
(4) by amending section 19 (7 U.S.C. 87h) to read as follows: 
"APPROPRIATIONS 
"SEC. 19. There are hereby authorized to be appropriated such 
sums as are necessary for standardization and compliance activities, 
monitoring in foreign ports grain officially inspected and weighed 
under this Act, and any other expenses necessary to carry out the 
provisions of this Act for each of the fiscal years during the period 
beginning October 1, 1988, and ending September 30, 1993, to the 
extent that financing is not obtained from fees and sales of samples 
as provided for in sections 7, 7A, and 17A of this Act."; and 
(5) by adding at the end thereof the following new section: 
"ADVISORY COMMITTEE 
7USC87J. 
"SEC. 21. (a)(1) Not later than ninety days after the date of 
enactment of this section, the Secretary shall establish an advisory 
committee to provide advice to the Administrator with respect to 
implementation of this Act consistent with the declarations of policy 
in section 2 of this Act. The advisory committee shall consist of 
fifteen members, appointed by the Secretary, who represent the 
interests of all segments of the grain producing, processing, storing, 
merchandising, consuming, and exporting industries, including 
grain inspection and weighing agencies and scientists with expertise 
in research related to the policies established in section 2 of this Act. 
Members of the advisory committee shall be appointed to three-year 
terms, except that of the initial fifteen members of the advisory 
committee first appointed following the enactment of this section, 
five shall be appointed for terms of one year and five shall be 
appointed for terms of two years. No member of the advisory 
committee may serve successive terms. 
"(2) To ensure a smooth transition, the advisory committee estab-
lished under section 20 (as in effect prior to October 1, 1988) shall 
continue in existence until all members of the advisory committee 
established under this section are appointed; and the Secretary may 
appoint members of the advisory committee established under sec-
tion 20 to serve on the advisory committee established under this 
section, without regard to the time of service of such members on 
the advisory committee established under section 20. 
"(b) The advisory committee shall be governed by the provisions of 
the Federal Advisory Committee Act (5 U.S.C. App. 2). 
"(c) The Administrator shall provide the advisory committee with 
necessary clerical assistance and staff personnel. 
"(d) Members of the advisory committee shall serve without com-
pensation, if not otherwise officers or employees of the United 
States, except that members shall, while away from their homes or 
regular places of business in the performance of services under this 
Act, be allowed travel expenses, including per diem in lieu of 
PUBLIC LAW 100-518—OCT. 24, 1988 
102 STAT. 2587 
subsistence, as authorized under section 5703 of title 5, United 
States Code.". 
SEC. 3. PILOT PROJECT ON CLEAN GRAIN PREMIUMS. 
7 USC 1421 note. 
(a) STUDY OF PREMIUMS AND DISCOUNTS.— 
(1) AUTHORITY.—The Secretary of Agriculture (hereinafter in Marketing, 
this section referred to as the "Secretary") shall conduct a study Exports, 
of the schedule of premiums and discounts applied to loans 
made in accordance with the Agricultural Act of 1949 (7 U.S.C. 
1421 et seq.) in order to determine how premiums and discounts 
can be used to encourage the production, marketing, and export-
ing of high quality, clean grain. 
(2) REPORT BY SECRETARY.—Not later than May 1, 1989, the 
Secretary shall prepare and submit, to the Committee on Agri-
culture of the House of Representatives and the Committee on 
Agriculture, Nutrition, and Forestry of the Senate, a report on 
the results of the study conducted under paragraph (1). 
(3) RECOMMENDATIONS.—The Secretary shall include rec-
ommendations with respect to a schedule of premiums and 
discounts in the report prepared under paragraph (2). 
(b) PILOT PROJECT.— 
(1) ESTABLISHMENT BY SECRETARY.—The Secretary shall estab- Marketing, 
lish a pilot project for the 1989 crops of wheat, soybeans, and Exports, 
feed grains to test the effectiveness of the recommendations 
contained in the report prepared under subsection (a) in 
encouraging the production, marketing, and exporting of high 
quality, clean grain. 
(2) SIX MULTI-COUNTY AREAS.—The pilot project established 
under paragraph (1) shall be conducted in no less than six multi-
county areas, of which— 
(A) two shall be areas that are predominantly wheat-
producing areas; 
(B) two shall be areas that are predominantly corn-
producing areas; and 
(C) two shall be areas that are predominantly soybean-
producing areas. 
(3) CONSULTATION.—The Secretary, prior to the implementa-
tion of the pilot project, shall consult with the Committee on 
Agriculture of the House of Representatives and the Committee 
on Agriculture, Nutrition, and Forestry of the Senate. 
(c) REVIEW OF PILOT PROJECT.—Not later than one hundred and Reports, 
eighty days after the end of the 1989 marketing year for feed grains, 
the Secretary shall conduct a review of the pilot project established 
under subsection (b) and prepare and submit to the Committee on 
Agriculture of the House of Representatives and the Committee on 
Agriculture, Nutrition, and Forestry of the Senate a report that 
describes the result of the project. The report shall include rec-
ommendations for further encouraging the production, marketing, 
and exporting of high quality, clean grain. 
SEC. 4. COTTON STANDARDS. 
Subsection (a) of section 5 of the United States Cotton Standards 
Act (7 U.S.C. 55(a)) is amended— 
(1) by striking out the second sentence; and 
(2) by adding at the end thereof the following new sentences: 
"Any fees or charges, late payment penalties, or proceeds from 
the sales of samples collected under this subsection, and any 
102 STAT. 2588 
PUBLIC LAW 100-518—OCT. 24, 1988 
interest earned through the investment of such funds shall be 
credited to the current appropriation account that incurs the 
costs of the services provided under this Act, and shall remain 
available without fiscal year limitation to pay the expenses of 
the Secretary incident to providing services and standards 
under this Act and the United States Cotton Futures Act 
Securities. 
(7 U.S.C. 15b). Such funds may be invested by the Secretary in 
insured or fully collateralized, interest-bearing accounts or, at 
the discretion of the Secretary, by the Secretary of the Treasury 
in United States Government debt instruments.". 
SEC. 5. STUDY OF EFFECTS OF INCLUDING DOCKAGE WITH FOREIGN 
MATERIAL AS A GRADING FACTOR FOR WHEAT. 
Not later than June 1, 1989, the Secretary of Agriculture, through 
the Federal Grain Inspection Service, shall— 
(1) conduct a study of the effects of including dockage with 
foreign material as a grading factor for wheat; and 
Reports. 
(2) submit a report on the results of such study to the Commit-
tee on Agriculture of the House of Representatives and the 
Committee on Agriculture, Nutrition, and Forestry of the 
Senate. 
Approved October 24, 1988. 
LEGISLATIVE HISTORY—H.R. 4345 (S. 2337): 
HOUSE REPORTS: No. 100-644 (Comm. on Agriculture). 
SENATE REPORTS: No. 100-455 accompanying S. 2337 (Comm. on Agriculture, 
Nutrition, and Forestry). 
CONGRESSIONAL RECORD, Vol. 134 (1988): 
May 23, considered and passed House. 
Sept. 28, considered and passed Senate, amended, in lieu of S. 2337. 
Oct. 3, 4, House concurred in Senate amendment with an amendment. 
Oct. 7, Senate concurred in House amendment.