Specialty Crops Competitiveness Act of 2004
PL 108-465 (H.R.3242), enacted 12/21/2004

118 STAT. 3882
PUBLIC LAW 108–465—DEC. 21, 2004
Public Law 108–465
108th Congress
An Act
To ensure an abundant and affordable supply of highly nutritious fruits, vegetables,
and other specialty crops for American consumers and international markets
by enhancing the competitiveness of United States-grown specialty crops, 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 ‘‘Specialty Crops Competitiveness
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, afford-
able supply of highly nutritious fruits, vegetables, and other
specialty crops, which are vital to the health and well-being
of all Americans.
(3) Increased consumption of specialty crops will provide
tremendous health and economic benefits 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 foreign 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 accomplish the goals of
increasing fruit, vegetable, and nut consumption and improving
the competitiveness of United States specialty crop producers.
SEC. 3. DEFINITIONS.
In this Act:
7 USC 1621 note.
7 USC 1621 note.
Specialty Crops
Competitiveness
Act of 2004.
Agriculture.
7 USC 3101 note.
Dec. 21, 2004
[H.R. 3242]
VerDate 11-MAY-2000
13:54 Nov 10, 2005
Jkt 029194
PO 00000
Frm 00416
Fmt 6580
Sfmt 6581
C:\STATUTES\2004\29194PT4.001
APPS10
PsN: 29194PT4
118 STAT. 3883
PUBLIC LAW 108–465—DEC. 21, 2004
(1) The term ‘‘specialty crop’’ means fruits and vegetables,
tree nuts, dried fruits, and nursery crops (including flori-
culture).
(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.—Subject 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 sub-
section (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 cal-
endar year in all States whose application for a grant for that
fiscal year is accepted by the Secretary under subsection (f).
(c) MINIMUM GRANT AMOUNT.—Subject to the appropriation
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 Agriculture, an application at
such time, in such a manner, and containing such information
as the Secretary shall require 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 sec-
tion 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 application 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 applications for a grant under this section.
(g) EFFECT
OF NONCOMPLIANCE.—If the Secretary of Agri-
culture, after reasonable notice to a State, finds that there has
Regulations.
7 USC 1621 note.
VerDate 11-MAY-2000
13:54 Nov 10, 2005
Jkt 029194
PO 00000
Frm 00417
Fmt 6580
Sfmt 6581
C:\STATUTES\2004\29194PT4.001
APPS10
PsN: 29194PT4
118 STAT. 3884
PUBLIC LAW 108–465—DEC. 21, 2004
been a failure by the State to comply substantially with any provi-
sion 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 author-
ized to be appropriated to the Secretary of Agriculture $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 authorization of appropriations shall be in addition to any
other funds made available to carry out such section.
SEC. 202. REDUCTION IN BACKLOG OF AGRICULTURAL EXPORT PETI-
TIONS.
(a) REDUCTION EFFORTS.—To the maximum extent practicable,
the Secretary of Agriculture shall endeavor to reduce the backlog
in the number of applications for permits for the export of United
States agricultural commodities. 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 expor-
tation is sought; and
(2) interdiction and control of pests and diseases, including
for the evaluation of pest and disease concerns of foreign agri-
cultural 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, Nutrition, and Forestry of the Senate
an annual report specifying, for the year covered by the report—
(1) the total number of applications processed to completion;
(2) the number of backlog applications processed to comple-
tion;
(3) the percentage of backlog applications processed to
completion; and
(4) the number of backlog applications remaining.
SEC. 203. REPORT ON SANITARY AND PHYTOSANITARY EXPORT ISSUES.
Not later than 180 days after the date of the enactment of
this Act, the Secretary of Agriculture shall submit to the Committee
on Agriculture of the House of Representatives and the Committee
on Agriculture, Nutrition, and Forestry of the Senate a report
7 USC 7712a.
Deadline.
VerDate 11-MAY-2000
13:54 Nov 10, 2005
Jkt 029194
PO 00000
Frm 00418
Fmt 6580
Sfmt 6581
C:\STATUTES\2004\29194PT4.001
APPS10
PsN: 29194PT4
118 STAT. 3885
PUBLIC LAW 108–465—DEC. 21, 2004
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 exten-
sion 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.
(b) AUTHORIZATION OF APPROPRIATIONS.—For each of the fiscal
years 2005 through 2009, there is authorized to be appropriated
to the Secretary of Agriculture $5,000,000 to carry out this section.
SEC. 302. NATIONAL SPECIALTY CROP RESEARCH PROGRAM.
Section 1672(e) of the Food, Agriculture, Conservation, and
Trade Act of 1990 (7 U.S.C. 5925(e)) is amended by adding at
the end of the following new paragraph:
‘‘(45) SPECIALTY CROP RESEARCH.—Research and extension
grants may be made under this section for the purpose of
improving the efficiency, productivity, and profitability of spe-
cialty crop production in the United States.’’.
SEC. 303. SPECIALTY CROP COMMITTEE.
The National Agricultural Research, Extension, and Teaching
Policy Act of 1977 is amended by inserting after section 1408
(7 U.S.C. 3123) the following new section:
‘‘SEC. 1408A. SPECIALTY CROP COMMITTEE.
‘‘(a) ESTABLISHMENT.—Not later than 90 days after the date
of the enactment of the Specialty Crops Competitiveness Act of
2004, the executive committee of the Advisory Board shall establish,
and appoint the initial members of, a permanent specialty crops
committee that will be responsible for studying the scope and
effectiveness of 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 executive 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 efficiency, produc-
tivity, and profitability of specialty crop production in the
United States.
‘‘(2) Measures designed to improve competitiveness in
research, extension, and economics programs affecting the spe-
cialty crop industry.
‘‘(3) Programs that would—
‘‘(A) enhance the quality and shelf-life of fresh fruits
and vegetables, including their taste and appearance;
Deadline.
7 USC 3123a.
7 USC 5925 note.
VerDate 11-MAY-2000
13:54 Nov 10, 2005
Jkt 029194
PO 00000
Frm 00419
Fmt 6580
Sfmt 6581
C:\STATUTES\2004\29194PT4.001
APPS10
PsN: 29194PT4
118 STAT. 3886
PUBLIC LAW 108–465—DEC. 21, 2004
‘‘(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 specialty 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 rec-
ommendations 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 budget material
submitted to Congress by the Secretary in connection 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 deposited into the Fund any proceeds received
by the Secretary of Agriculture as reimbursement for services pro-
vided by the Secretary using amounts in the Fund.
(b) AVAILABILITY.—Amounts in the Fund shall remain available
until expended.
(c) USE OF FUND.—In implementing the Animal Health Protec-
tion Act (7 U.S.C. 8301 et seq.) and the Plant Protection Act
(7 U.S.C. 7701 et seq.), the Secretary of Agriculture shall have
complete discretion regarding the use of amounts in the Fund
to support emergency 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 authorized 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 standards that govern the consid-
eration 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.
Contracts.
7 USC 8321.
VerDate 11-MAY-2000
13:54 Nov 10, 2005
Jkt 029194
PO 00000
Frm 00420
Fmt 6580
Sfmt 6581
C:\STATUTES\2004\29194PT4.001
APPS10
PsN: 29194PT4
118 STAT. 3887
PUBLIC LAW 108–465—DEC. 21, 2004
LEGISLATIVE HISTORY—H.R. 3242:
HOUSE REPORTS: No. 108–750, Pt. 1 (Comm. on Agriculture).
CONGRESSIONAL RECORD, Vol. 150 (2004):
Oct. 6, considered and passed House.
Dec. 7, considered and passed Senate.
WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS, Vol. 40 (2004):
Dec. 21, Presidential statement.
(b) ELEMENTS OF REVIEW.—The peer review required by sub-
section (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 Agriculture.
(c) SUBMISSION OF RESULTS.—The results of the peer review
conducted under subsection (a) shall be submitted to the Secretary
and Congress not later than 180 days after the date of the enact-
ment of this Act.
SEC. 403. MAINTENANCE OF FREDERICKSBURG INSPECTION TRAINING
CENTER.
For each of the fiscal years 2005 through 2009, there is author-
ized to be appropriated to the Secretary of Agriculture $1,500,000
for the maintenance of the Agricultural Marketing Service inspec-
tion training center in Fredericksburg, Virginia.
Approved December 21, 2004.
Virginia.
VerDate 11-MAY-2000
13:54 Nov 10, 2005
Jkt 029194
PO 00000
Frm 00421
Fmt 6580
Sfmt 6580
C:\STATUTES\2004\29194PT4.001
APPS10
PsN: 29194PT4