H.R. 2493 (104^th): Food for Peace Reauthorization Act of 1995

HR 2493 IH

104th CONGRESS

1st Session

H. R. 2493

To make modifications to international food aid programs.

IN THE HOUSE OF REPRESENTATIVES

October 18, 1995

Mr. EMERSON (for himself and Mr. CONDIT) introduced the following bill; which was referred to the Committee on International Relations, and in addition to the Committee on Agriculture, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned

---

A BILL

To make modifications to international food aid programs.

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 ‘Food For Peace Reauthorization Act of 1995’.

SEC. 2. FOOD ASSISTANCE TO DEVELOPING COUNTRIES.

Section 3 of the Agricultural Trade Development and Assistance Act of 1954 (7 U.S.C.1691a) is amended to read as follows:

‘SEC. 3. FOOD ASSISTANCE TO DEVELOPING COUNTRIES.

‘It is the sense of Congress that--

‘(1) the United States should maintain its role of world leadership in promoting food security and economic development in developing countries; and

‘(2) the President should encourage other advanced nations to consider appropriate levels of food assistance to meet the legitimate needs of developing countries.’.

SEC. 3. TRADE AND DEVELOPMENT ASSISTANCE.

Section 101 of the Agricultural Trade Development and Assistance Act of 1954 (7 U.S.C. 1701) is amended--

(1) by striking ‘developing countries’ each place it appears and inserting ‘developing countries and private entities’; and

(2) in subsection (b)--

(A) by striking ‘To carry out’ and all that follows through ‘section 2, the’ and inserting ‘The’; and

(B) by inserting ‘and entities’ before the period at the end.

SEC. 4. AGREEMENTS REGARDING ELIGIBLE COUNTRIES AND PRIVATE ENTITIES.

Section 102 of the Agricultural Trade Development and Assistance Act of 1954 (7 U.S.C. 1702) is amended to read as follows:

‘SEC. 102. AGREEMENTS REGARDING ELIGIBLE COUNTRIES AND PRIVATE ENTITIES.

‘(a) PRIORITY- In selecting agreements to be entered into under this title, the Secretary shall give priority to agreements providing for the export of agricultural commodities to developing countries that--

‘(1) have the demonstrated potential to become commercial markets for competitively priced United States agricultural commodities;

‘(2) are undertaking measures for economic development purposes to improve food security and agricultural development, alleviate poverty, and promote broad-based equitable and sustainable development; and

‘(3) demonstrate the greatest need for food.

‘(b) PRIVATE ENTITIES- An agreement entered into under this title with a private entity shall require such security, or such other provisions as the Secretary determines necessary, to provide reasonable and adequate assurance of repayment of the financing extended to the private entity.

‘(c) AGRICULTURAL MARKET DEVELOPMENT PLAN-

‘(1) IN GENERAL- If there is in effect for a country a market development plan approved by the Secretary, for the purposes of the priority set forth in subsection (a), the Secretary shall deem that country to have the demonstrated potential to become a commercial market for competitively priced United States agricultural commodities. However, not more than 50 percent of the agricultural commodities sold under this title during a fiscal year shall be granted the priority because this deeming rule applies.

‘(2) REQUIREMENTS- To be approved by the Secretary, the agricultural market development plan shall--

‘(A) be submitted by a country or private entity in conjunction with an agricultural trade organization;

‘(B) describe a project or program, designed with the cooperation of the agricultural trade organization, for the development and expansion of United States agricultural commodity markets in the appropriate developing country;

‘(C) use funds raised from the sale of agricultural commodities received under agreements under section 101;

‘(D) be implemented and administered in coordination with the agricultural trade organization; and

‘(E) contain additional requirements determined necessary by the Secretary.

‘(3) AGRICULTURAL TRADE ORGANIZATION- For purposes of this subsection, the term ‘agricultural trade organization’ means a United States agricultural trade organization that promotes the export and sale of United States agricultural commodities and that does not stand to profit directly from specific sales of agricultural commodities.’.

SEC. 5. TERMS AND CONDITIONS OF SALES.

Section 103 of the Agricultural Trade Development and Assistance Act of 1954 (7 U.S.C. 1703) is amended--

(1) in subsection (a)(2)(A)--

(A) by striking ‘a recipient country to make’ and

(B) by striking ‘such country’ and inserting ‘the appropriate country’;

(2) in subsection (c), by striking ‘less than 10 nor’; and

(3) in subsection (d)--

(A) by striking ‘recipient country’ and inserting ‘recipient’; and

((B) by striking ‘7 years’ and inserting ‘5 years’.

SEC. 6. USE OF LOCAL CURRENCY.

Section 104 of the Agricultural Trade Development and Assistance Act of 1954 (7 U.S.C. 1704) is amended--

(1) in subsection (a), by striking ‘recipient country’ and inserting ‘recipient’; and

(2) in subsection (c)--

(A) by striking ‘recipient country’ and inserting ‘appropriate developing country’ each place it appears; and

(B) by striking ‘recipient countries’ and inserting ‘appropriate developing countries’.

SEC. 7. PRIVATE ENTITIES.

The Agricultural Trade Development and Assistance Act of 1954 (7 U.S.C. 1701 et seq.) is amended--

(1) by striking ‘a private voluntary organization or cooperative’ each place it appears in section 202(d) and subsections (a) and (d) of section 203 and inserting ‘a private entity, private voluntary organization, or cooperative’;

(2) by striking ‘private voluntary organizations and cooperatives’ each place it appears in sections 203(b) and 306(a)(5) and inserting ‘private entities, private voluntary organizations, and cooperatives’;

(3) in the section heading of section 203, by striking ‘private voluntary organizations and cooperatives’ and inserting ‘ private entities, private voluntary organizations, and cooperatives’;

(4) in section 203(c), by striking ‘A private voluntary organization or cooperative’ and inserting ‘A private entity, private voluntary organization, or cooperative’; and

(5) in section 501(a)(4), by striking ‘private voluntary organizations, cooperatives,’ and inserting ‘private entities, private voluntary organizations, cooperatives,’.

SEC. 8. PROVISION OF AGRICULTURAL COMMODITIES.

Section 202(e) of the Agricultural Trade Development and Assistance Act of 1954 (7 U.S.C. 1722(e)) is amended--

(1) in the subsection heading, by inserting ‘INTERGOVERNMENTAL ORGANIZATIONS,’ after ‘SUPPORT FOR’;

(2) in paragraph (1)--

(A) by striking ‘$13,500,000’ and inserting ‘$28,000,000’; and

(B) by striking ‘private voluntary organizations and cooperatives to assist such organizations and cooperatives’ and inserting ‘eligible organizations described in subsection (d), to assist those organizations’;

(3) in paragraph (2), by striking ‘a private voluntary organization or cooperative’ and inserting ‘an intergovernmental organization, private entity, private voluntary organization, or cooperative’; and

(4) in paragraph (3), by striking ‘a private voluntary organization or cooperative, the Administrator may provide assistance to that organization or cooperative’ and inserting ‘an eligible organization described in subsection (d), the Administrator may provide assistance to that eligible organization’.

SEC. 9. EFFECTIVE USE OF COMMODITIES.

Section 202(f) of the Agricultural Trade Development and Assistance Act of 1954 (7 U.S.C. 1722(f) is amended--

(1) by striking the period at the end of paragraph (6) and inserting ‘; and’; and

(2) by adding at the end the following:

‘(7) be permitted to carry out a program under this title--

‘(A) in a foreign country in which the Agency for International Development does not have a mission, office, or other presence; or

‘(B) that is not part of the developmental strategy prepared by such Agency for the country in which the program is carried out.’

SEC. 10. MONETIZATION.

Section 203 of the Agricultural Trade Development and Assistance Act of 1954 (7 U.S.C. 1723) is amended--

(1) in subsection (a), by inserting ‘, or in a country in the same region’ after ‘in the recipient country’;

(2) in subsection (b)--

(A) by inserting ‘or in countries in the same region’ after ‘in the recipient country’; and

(B) by striking ‘10 percent’ and inserting ‘15 percent’;

(3) in subsection (c), by inserting ‘or within a country in the same region’ after ‘within the recipient country’.

SEC. 11. GENERAL LEVELS OF ASSISTANCE UNDER PUBLIC LAW 480.

Section 204(a) of the Agricultural Trade Development and Assistance Act of 1954 (7 U.S.C. 1724(a)) is amended--

(1) in paragraph (1), by striking ‘amount that’ and all that follows through the period at the end and inserting ‘amount that for each of fiscal years 1996 through 2002 is not less than 2,025,000 metric tons.’; and

(2) in paragraph (2), by striking ‘amount that’ and all that follows through the period at the end and inserting ‘amount that for each of fiscal years 1996 through 2002 is not less than 1,550,000 metric tons.’.

SEC. 12. USE OF VALUE ADDED COMMODITIES.

Section 204(b)(1) of the Agricultural Trade Development and Assistance Act of 1954 (7 U.S.C. 1724(e)) is amended by inserting ‘and that not less than 50 percent of the quantity of such bagged commodities that are whole grain commodities shall be bagged in the United States’ before the period at the end.

SEC. 13. FOOD AID CONSULTATION GROUP.

(a) MEMBERSHIP- Section 205(b)(2) of the Agricultural Trade Development and Assistance Act of 1954 (7 U.S.C. 1725(b)(2)) is amended by striking ‘International Affairs and Commodity Programs’ and inserting ‘Agriculture for Farm and Foreign Agricultural Services’.

(b) EXPIRATION DATE- Section 205(f) of the Agricultural Trade Development and Assistance Act of 1954 (7 U.S.C. 1725(f)) is amended by striking ‘1995’ and inserting ‘2002’.

SEC. 14. FOOD FOR DEVELOPMENT.

Sections 301(b) and 303 of the Agricultural Trade Development and Assistance Act of 1954 (7 U.S.C. 1727(b) and 1727b) are each amended by striking ‘To carry out’ and all that follows through ‘section 2, the’ and inserting ‘The’.

SEC. 15. COMMODITY DETERMINATIONS.

Section 401 of the Agricultural Trade Development and Assistance Act of 1954 (7 U.S.C. 1731) is amended--

(1) by striking subsections (a) through (d) and inserting the following:

‘(a) AVAILABILITY OF COMMODITIES- No agricultural commodity shall be available for disposition under this Act if the Secretary determines that the disposition would reduce the domestic supply of the commodity below the supply needed to meet domestic requirements and provide adequate carryover (as determined by the Secretary), unless the Secretary determines that some part of the supply should be used to carry out urgent humanitarian purposes under this Act.’;

(2) by redesignating subsections (e) and (f) as subsections (b) and (c), respectively; and

(3) in subsection (c) (as so redesignated), by striking ‘(e)(1)’ and inserting ‘(b)(1)’.

SEC. 16. GENERAL PROVISIONS.

Section 403 of the Agricultural Trade Development and Assistance Act of 1954 (7 U.S.C. 1733) is amended--

(1) in subsection (c)--

(A) by inserting ‘or private entities, as appropriate,’ after ‘commitments from countries’; and

(B) by striking ‘for use’ and inserting ‘or use’; and

(2) in subsection (f), by inserting ‘or private entities, as appropriate,’ after ‘from countries’.

SEC. 17. AGREEMENTS.

Section 404 of the Agricultural Trade Development and Assistance Act of 1954 (7 U.S.C. 1734) is amended--

(1) in subsection (a), by inserting ‘with foreign countries’ after ‘Before entering into agreements’;

(2) in subsection (b)(2)--

(A) by inserting ‘with foreign countries’ after ‘with respect to agreements entered into’; and

(B) by inserting before the semicolon at the end the following: ‘and broad-based economic growth’; and

(3) so that subsection (c)(1) reads as follows:

‘(1) IN GENERAL-

‘(A) TITLES I AND III- Agreements to provide assistance on a multi-year basis under titles I and III may be made available to recipient countries or to eligible organizations.

‘(B) TITLE II- Agreements to provide assistance on a multi-year basis shall be made available to recipient countries and to eligible organizations.’.

SEC. 18. ADMINISTRATIVE PROVISIONS.

Section 407 of the Agricultural Trade Development and Assistance Act of 1954 (7 U.S.C. 1736a) is amended--

(1) in subsection (a)(1), by inserting ‘or private entity’ after ‘importing country’;

(2) in subsection (c)--

(A) in paragraph (1)(A), by inserting ‘importer or’ before ‘importing country’; and

(B) in paragraph (2)(A), by inserting ‘importer or’ before ‘importing country’; and

(3) by striking subsection (h).

SEC. 19. EXPIRATION DATE.

Section 408 of the Agricultural Trade Development and Assistance Act of 1954 (7 U.S.C. 1736b) is amended by striking ‘1995’ and inserting ‘2002’.

SEC. 20. REPEAL OF SECTIONS 409 AND 410.

Sections 409 and 410 of the Agricultural Trade Development and Assistance Act of 1954 (7 U.S.C. 1736c and 1736d) are repealed.

SEC. 21. USE OF LOCAL CURRENCY IN TITLE V.

Section 501(a)(6) of the Agricultural Trade Development and Assistance Act of 1954 (7 U.S.C. 1737(a)(6)) is amended--

(1) by striking ‘practicable’,’ and all that follows through ‘under this section’ and inserting ‘that local currencies can be used to meet the costs of a program established under this section, augment funds of the United States that are available for such a program’; and

(2) by inserting ‘, within the country where the program is conducted’ before the period at the end.

SEC. 22. TITLE V FUNDING LEVEL.

Section 501(c) of the Agricultural Trade Development and Assistance Act of 1954 (7 U.S.C. 1737(c)) is amended--

(1) by striking ‘0.2’ and inserting ‘0.4’; and

(2) by striking ‘1991 through 1995’ and inserting ‘1996 through 2002’.

SEC. 23. FOOD FOR PROGRESS.

Section 1110 of the Food Security Act of 1985 (7 U.S.C. 1736o) is amended--

(1) in the first sentence of subsection (b)(1), by inserting ‘intergovernmental organizations,’ after ‘private voluntary organizations,’;

(2) in subsection (g), by striking ‘1995’ and inserting ‘2002’;

(3) in subsection (k), by striking ‘1995’ and inserting ‘2002’;

(4) in subsection (l)(1)--

(A) by striking ‘1995’ and inserting ‘2002’; and

(B) by inserting ‘, and to provide administrative and technical assistance for monetization programs,’ after ‘monitoring of food assistance programs’; and

(5) in subsection (m)--

(A) by striking ‘with respect to the independent states of the former Soviet Union’; and

(B) in paragraph (2), by striking ‘in the independent states’.

SEC. 24. FOOD SECURITY COMMODITY RESERVE.

(a) FOOD SECURITY COMMODITY RESERVE ACT OF 1995- The title heading of title III of the Agricultural Act of 1980 (7 U.S.C. 1736f-1 note) is amended by striking ‘food security wheat reserve act of 1980’ and inserting ‘food security commodity reserve act of 1995’.

(b) SHORT TITLE- Section 301 of the Act (7 U.S.C. 1736f-1 note) is amended by striking ‘Food Security Wheat Reserve Act of 1980’ and inserting ‘Food Security Commodity Reserve Act of 1995’.

(c) IN GENERAL- Section 302 of the Act (7 U.S.C. 1736f-1) is amended--

(1) in the section heading, by striking ‘food security wheat reserve’ and inserting ‘food security commodity reserve’;

(2) so that subsection (a) reads as follows:

‘(a) IN GENERAL- To provide for a reserve solely to meet emergency humanitarian food needs in developing countries, the Secretary shall establish a reserve stock of wheat, rice, corn, or sorghum, or any combination of the commodities, totaling not more than 4,000,000 metric tons for use as described in subsection (c).’;

(3) so that subsection (b)(1) reads as follows:

‘(b) Commodities in Reserve-

‘(1) IN GENERAL- The reserve established under this section shall consist of--

‘(A) wheat in the reserve established under the Food Security Commodity Reserve Act of 1980 as of the date of enactment of the Food For Peace Reauthorization Act of 1995;

‘(B) wheat, rice, corn, and sorghum (referred to in this section as ‘eligible commodities’) acquired in accordance with paragraph (2) to replenish eligible commodities released from the reserve, including wheat to replenish wheat released from the reserve established under the Food Security Wheat Reserve Act of 1980 but not replenished as of the date of enactment of the Food For Peace Reauthorization Act of 1995; and

‘(C) such rice, corn, and sorghum as the Secretary of Agriculture (referred to in this section as the ‘Secretary’) may, at such time and in such manner as the Secretary determines appropriate, acquire as a result of exchanging an equivalent value of wheat in the reserve established under this section.’;

(4) in subsection (b)(2)--

(A) by striking ‘(2)(A) Subject to’ and inserting the following:

‘(2) Replenishment of reserve-

‘(A) IN GENERAL- Subject to’;

(B) in subparagraph (A)--

(i) by striking ‘(i) of this section stocks of wheat’ and inserting ‘(i) stocks of eligible commodities’;

(ii) in clause (ii), by striking ‘stocks of wheat’ and inserting ‘stocks of eligible commodities’; and

(iii) in the second sentence, by striking ‘wheat’ and inserting ‘eligible commodities’; and

(C) in subparagraph (B)--

(i) by striking ‘(B) Not later’ and inserting ‘(B) TIME FOR REPLENISHMENT OF RESERVE- Not later’; and

(ii) in clause (ii), by striking ‘wheat’ and inserting ‘eligible commodities’;

(5) so that subsections (c) through (f) read as follows:

‘(c) Release of Eligible Commodities-

‘(1) DETERMINATION- If the Secretary determines that the amount of commodities allocated for minimum assistance under section 204(a)(1) of the Agricultural Trade Development and Assistance Act of 1954 (7 U.S.C. 1724(a)(1)) less the amount of commodities allocated for minimum non-emergency assistance under section 204(a)(2) of the Act (7 U.S.C. 1724(a)(2)) will be insufficient to meet the need for commodities for emergency assistance under section 202(a) of the Act (7 U.S.C. 1722(a)), the Secretary in any fiscal year may release from the reserve--

‘(A) up to 500,000 metric tons of wheat or the equivalent value of eligible commodities other than wheat; and

‘(B) any eligible commodities which under subparagraph (A) could have been released but were not released in prior fiscal years.

‘(2) AVAILABILITY OF COMMODITIES- Commodities released under paragraph (1) shall be made available under title II of the Agricultural Trade Development and Assistance Act of 1954 (7 U.S.C. 1721 et seq.) for emergency assistance.

‘(3) EXCHANGE- The Secretary may exchange an eligible commodity for another United States commodity of equal value, including powdered milk, pulses, and vegetable oil.

‘(4) USE OF NORMAL COMMERCIAL PRACTICES- To the maximum extend practicable consistent with the fulfillment of the purposes of this section and the effective and efficient administration of this section, the Secretary shall use the usual and

customary channels, facilities, arrangements, and practices of the trade and commerce.

‘(5) WAIVER OF MINIMUM TONNAGE REQUIREMENTS- Nothing in this subsection shall require the exercise of the waiver under section 204(a)(3) of the Agricultural Trade Development and Assistance Act of 1954 (7 U.S.C. 1724(a)(3)) as a prerequisite for the release of eligible commodities under this subsection.

‘(d) TRANSPORTATION AND HANDLING COSTS-

‘(1) IN GENERAL- The cost of transportation and handling of eligible commodities released from the reserve established under this section shall be paid by the Commodity Credit Corporation in accordance with section 406 of the Agricultural Trade Development and Assistance Act of 1954 (7 U.S.C. 1736).

‘(2) REIMBURSEMENT-

‘(A) IN GENERAL- The Commodity Credit Corporation shall be reimbursed for the costs incurred under paragraph (1) from the funds made available to carry out the Agricultural Trade Development and Assistance Act of 1954 (7 U.S.C. 1691 et seq.).

‘(B) BASIS FOR REIMBURSEMENT- The reimbursement shall be made on the basis of the lesser of the actual cost incurred by the Commodity Credit Corporation less any savings achieved as a result of decreased storage and handling costs for the reserve.

‘(C) DECREASED STORAGE AND HANDLING COSTS- For purposes of this subsection, ‘decreased storage and handling costs’ shall mean the total actual costs for storage and handling incurred by the Commodity Credit Corporation for the reserve established under title III of the Agricultural Act of 1980 in fiscal year 1995 less the total actual costs for storage and handling incurred by the Corporation for the reserve established under this Act in the fiscal year for which the savings are calculated.

‘(e) MANAGEMENT OF RESERVE- The Secretary shall provide for--

‘(1) the management of eligible commodities in the reserve as to location and quality of commodities needed to meet emergency situations; and

‘(2) the periodic rotation of eligible commodities in the reserve to avoid spoilage and deterioration of such stocks.

‘(f) TREATMENT OF RESERVE UNDER OTHER LAW- Eligible commodities in the reserve established under this section shall not be--

‘(1) considered a part of the total domestic supply (including carryover) for the purpose of administering the Agricultural Trade Development and Assistance Act of 1954 (7 U.S.C. 1691 et seq.); and

‘(2) subject to any quantitative limitation on exports that may be imposed under section 7 of the Export Administration Act of 1979 (50 U.S.C. App. 2406).’;

(6) in subsection (g)--

(A) by striking ‘(g)(1) The’ and inserting the following:

‘(g) USE OF COMMODITY CREDIT CORPORATION- The’;

(B) by striking ‘wheat’ and inserting ‘an eligible commodity’; and

(C) by striking paragraph (2);

(7) in subsection (h)--

(A) by striking ‘(h) Any’ and inserting:

‘(h) FINALITY OF DETERMINATION- Any’; and

(B) by striking ‘President or the Secretary of Agriculture’ and inserting ‘Secretary’; and

(8) in subsection (i)--

(A) by striking ‘(i) The’ and inserting:

‘(i) TERMINATION OF AUTHORITY- The’;

(B) by striking ‘wheat’ each place it appears and inserting ‘eligible commodities’; and

(C) by striking ‘1995’ each place it appears and inserting ‘2002’.

(d) EFFECTIVE DATE- Section 303 of the Act (7 U.S.C. 1736-1 note) is amended by striking ‘October 1, 1980’ and all that follows through the end of the section and inserting ‘on the date of enactment of this Act.’.

(e) CONFORMING AMENDMENT- Section 208(d)(2) of the Agriculture Trade Suspension Adjustment Act of 1980 (7 U.S.C. 4001(d)(2)) is amended to read as follows:

‘(2) APPLICABILITY OF CERTAIN PROVISIONS- Subsections (b)(2), (c), (e), and (f) of section 302 of the Food Security Commodity Reserve Act of 1995 shall apply to commodities in any reserve established under paragraph (1), except that the references to ‘eligible commodities’ in the subsections shall be deemed to be references to ‘agricultural commodities’.’.

Loading...