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S. 275 (95th): Food and Agriculture Act


The text of the bill below is as of Sep 29, 1977 (Passed Congress).

Summary of this bill

Source: Wikipedia

The United States Food and Agriculture Act of 1977 (P.L. 95-113, also known as the 1977 U.S. Farm Bill) was an omnibus farm bill. The S. 275 legislation was passed by the 95th U.S. Congressional session and signed into law by the 39th President of the United States Jimmy Carter on September 29, 1977.

It increased price and income supports and established a farmer-owned reserve for grain. It also established a new two-tiered pricing program for peanuts. Under the peanut program, producers were given an acreage allotment on which a poundage quota was set. Growers could produce in excess of their quota, within their acreage allotment, but ...


PUBLIC LAW 95-113—SEPT. 29, 1977                                                            91 STAT. 913

Public Law 95-113
95th Congress
                                                An Act
                                                                                                                    Sent 2Q 1977
To provide price and income protection for farmers and assure consumers of an                                         r '   '
    abundance of food and liber at reasonable prices, and for other purposes.                                          [S. 275]

    Be it enacted hy the Senate a)id House of Rejfresentatives of the
United States of Ainerlca in Congress assembled^ Tliat this Act, with Food and
t h e f o l l o w i n g t a b l e o f c o n t e n t s , m a y be c i t e d a s t h e " F o o d a n d A g r i c i i l - Agriculture Act
tureActofl977".                                                                                                        fif^/ioPi      ,
                                       TABLE OF C O N T E N T S                                                    ^ ^ ^ ^ ^281 note.

       TITLE I—PAYMENT LIMITATION FOR WHEAT, FEED GRAINS,
                    UPLAND COTTON, AND RICE
Sec. 101.    Payment limitation.
Sec. 102.    Family farms.
See. 103.    Study on prohibiting payments to certain legal entities.
Sec. 104.    Conforming amendment.
                  TITLE II—DAIRY AND BEEKEEPER PROGRAMS
Sec. 201.    Dairy base plans.
Sec. 202.    Producer handlers.
Sec. 203.    Milk price support.
Sec. 204.    Transfer of dairy products to the military and veterans hospitals.
Sec. 205.    Dairy indemnity program.
Sec. 206.    Standard of quality for ice cream.
Sec. 207.    Beekeeper indemnity program.                t
                               TITLE III—WOOL AND MOHAIR
Sec. 301. Declaration of policy.
See. 302. Extension of Act; support price.                              ;
                                         TITLE IV-^WHEAT
Sec. 401. Loan rates and target prices for the 1977 through 1981 crops.
Sec. 402. Program acreages and payment yields ; set-aside program.
Sec. 403. Nonapplicability of certificate requirements.
Sec. 404. Suspension of marketing quotas and producer certificate provisions.
Sec. 405. Finality of determinations.
Sec. 406. Suspension of quota provisions.
Sec. 407. Application of terms in the Agricultural Act of 1949.
Sec. 408. Commodity Credit Corporation sales price restrictions for wheat and
            feed grains.
Sec. 409. Nonapplicability of section 107 of the Agricultural Act of 1949 to the
            1977 through 1981 crops of wheat.
Sec. 410. Nonapplicability of section 107 of the Agricultural Act of 1949, a s
            amended, to the 1977 crop of wheat.
                                     TITLE V—FEED GRAINS
Sec. 501. Loan rates and target prices for the 1977 through 1981 crops.
Sec. 502. Program acreages and payment yields; set-aside program.
Sec. 503. Nonapplicability of section 105 of the Agricultural Act of 1949 to t h e
            1977 through 1981 crops of feed grains.
Sec. 504. Nonapplicability of section 105 of the Agricultural Act of 1949, as
            amended, to the 1977 crop of feed grains.
                                 TITLE VI—UPLAND COTTON
Sec. 601. Base acreage allotments; suspension of marketing quotas, and related
            provisions.
Sec. 602. Cotton production incentives; loan r a t e and target price; set-aside
            program.

91 STAT. 914 PUBLIC LAW 95-113—SEPT. 29, 1977 TABLE OF CONTENTS—Continued TITLE VI—UPLAND COTTON—Continued Sec. 603. Commodity Credit Corporation sales price restrictions. Sec. 604. Miscellaneous cotton provisions. Sec. 605. Skiprow practices. Sec. 606. Preliminary allotments for 1982 crop of upland cotton. Sec. 607. Extra long staple cotton. TITLE VII—BICE Sec. 701. National acreage allotment and allocation. Sec. 702. Loan rates, target prices, and set-aside for the 1978 through 1981 crops. Sec. 703. Suspension of marketing quotas and other provisions. Sec. 704. Definition of cooperator. Sec. 705. Conforming amendment. TITLE VIII—PEANUTS Sec. 801. Annual marketing quota and State acreage allotment. Sec. 802. National acreage allotment; national poundage quota; farm poundage quota; and definitions. Sec. 803. Sale, lease, and transfer of acreage allotments. Sec. 804. Marketing penalties; disposition of additional peanuts. Sec. 805. Reports and records. Sec. 806. Preservation of unused allotments. Sec. 807. Price support program. TITLE IX—SOYBEANS AND SUGAR Sec. 901. Soybean price support. Sec. 902. Sugar price support. TITLE X—MISCELLANEOUS Sec. 1001. Set-aside of normally planted acreage. Sec. 1002. American agriculture protection program. Sec. 1003. Budget amendment. Sec. 1004. Special grazing and hay program. Sec. 1005. Daily release of reports of export sales of agricultural commodities. Sec. 1006. Filberts. TITLE XI—GRAIN RESERVES Sec. 1101. Producer storage program for wheat and feed grains. Sec. 1102. International emergency food reserve. Sec. 1103. Disaster reserve. Sec. 1104. Farm storage facility loans. Sec. 1105. Emergency feed program, TITLE XII—PUBLIC LAW 480 Sec. 1201. Authority for the Commodity Credit Corporation to act as purchasing or shipping agent under title I. Sec. 1202. Title I sales procedures. Sec. 1203. Increased appropriation limit for title II. Sec. 1204. Availability of commodities. Sec. 1205. Financing the sale of food and fiber commodities. Sec. 1206. Valuation of commodities acquired through price support programs. Sec. 1207. Revised regulations governing operations; bagged commodities. Sec. 1208. Extension of the program. Sec. 1209. Use of nonprice-supported commodities under Public Law 480. Sec. 1210. Special task force on the operation of Public Lave 480. TITLE XIII—FOOD STAMP AND COMMODITY DISTRIBUTION PROGRAMS Sec. 1301. Food Stamp Act of 1964 amendments. Sec. 1302. Conforming amendments. Sec. 1303. Implementation of the Food Stamp Act of 1977. Sec. 1304. Commodity distribution programs.
PUBLIC LAW 95-113—SEPT. 29, 1977 91 STAT. 915 T A B L E OF C O N T E N T S — C o n t i n u e d TITLE XIV—NATIONAL AGRICULTURAL RESEARCH, EXTENSION, AND TEACHING POLICY ACT OF 1977 Sec. 1401. Short title. SUBTITLE A—FINDINGS, PURPOSKS, AND DEFINITIONS Sec. 1402. Findings. Sec. 1403. Purposes. Sec. 1404. Definitions. SUBTITLE B—COORDINATION AND PLANNING OF AGRICULTURAL RESEARCH, EXTENSION, AND TEACHING Sec. 1405. Responsibilities of the Secretary and Department of Agriculture. Sec. 1406. Federal Subcommittee on Food and Renewable Resources. Sec. 1407. Joint Council on Food and Agricultural Sciences. Sec. 1408. National Agricultural Research and Extension Users Advisory Board. Sec. 1409. Existing research programs. Sec. 1410. Secretary's report. Sec. 1411. Libraries and information network. Sec. 1412. Support for the Joint Council and Advisory Board. Sec. 1413. General provisions. SUBTITLE C—AGRICULTURAL RESEARCH AND EDUCATION GRANTS AND FELLOWSHIPS Sec. 1414. Program of competitive, special, and facilities grants for agricultural research. Sec. 1415. Grants to establish or expand schools of veterinary medicine. Sec. 1416. Amendments to the Research Facilities Act of 1963. Sec. 1417. Grants and fellowships for food and agricultural sciences education. Sec. 1418. National agricultural research award. Sec. 1419. Grants for research on the production and marketing of alcohols and industrial hydrocarbons from agricultural commodities and forest products, and agricultural chemicals and other products from coal derivatives. Sec. 1420. Pilot projects for the production and marketing of industrial hydro- carbons and alcohols from agricultural commodities and forest products. Si'BTJTLE D—NATIONAL FOOD AND H U M A N NUTRITION RESEARCH AND EXTENSION PROGRAM Sec. 1421. Findings and declarations. Sec. 1422. Duties of the Secretary of Agriculture. Sec. 1423. Research by the Department of Agriculture. Sec. 1424. Study. Sec. 1425. Nutrition education program. Sec. 1426. Nutrition education materials. Sec. 1427. Report to Congress. Sec. 1428. Nutritional status monitoring. SUBTITLE E — A N I M A L HEALTH AND DISEASE RESEABOH Sec. 1429. Purpose. Sec. 1430. Definitions. Sec. 1431. Authorization to the Secretary of Agriculture. Sec. 1432. Animal Health Science Research Advisory Board. Sec. 1433. Appropriations for continuing animal health and disease research programs. Sec. 1434. Appropriations for research on national or regional problems. Sec. 1435. Availability of appropriated funds. Sec. 1436. Withholding of appropriated funds. Sec. 1437. Requirements for use of funds. Sec. 1438. Matching funds. Sec. 1439. Allocations under this subtitle not substitutions.
91 STAT. 916 PUBLIC LAW 95-113—SEPT. 29, 1977 T A B L E OF C O N T E N T S — C o n t i n u e d TITLE XIV—NATIONAL AGRICULTURAL RESEARCH, EXTENSION, AND TEACHING POLICY ACT OF 1977—Continued SUBTITLE F — S M A L L FARM RESEARCH AND EXTENSION Sec. 1440. Small farm research and extension programs. Sec. 1441. Program moneys. Sec. 1442. Definition of small farmer. * Sec. 1443. Reports. SUBTITLE G—1890 LAND-GRANT COLLEGE FUNDING Sec. 1444. Extension a t 1890 land-grant colleges, including Tuskegee Institute. Sec. 1445. Agricultural research a t 1890 land-grant colleges, including Tuskegee Institute. SUBTITLE H—SOLAR ENERGY RESEARCH AND DEVELOPMENT PART 1—EXISTING PROGRAMS Sec. 1446. Agricultural research. Sec. 1447. Agricultural extension. . . Sec. 1448. Rural development. PART 2—COMPETITIVE GRANTS PROGRAM Sec. 1449. Competitive grants i>rogram. PART 3—INFORMATION SYSTEM AND ADVISORY COMMITTEE Sec. 1450. Solar energy research information system. Sec. 1451. Advisory Committee. PART 4 MODEL FARMS AND DEMONSTRATON PROJECTS Sec. 1452. Model farms. Sec. 1453. Demonstration projects. Sec. 1454. Authorization for appropriations. PART 5—REGIONAL SOLAR ENERGY RESEARCH AND DEVELOPMENT CENTERS Sec. 1455. Regional solar energy research and development centers. PART 6—APPROPRIATIONS AND DEFINITIONS Sec. 1456. Authorization for appropriations. Sec. 1457. Definitions. / SUBTITLE I—INTERNATIONAL AGRICULTURAL RESEARCH AND EXTENSION Sec. 1458. International agricultural research and extension. SUBTITLE J—STUDIES Sec. 1459. Evaluation of the Extension Service and the Cooperative Extension Services. Sec. 1460. "Weather and water allocation study. Sec. 1461. Organic farming study. See. 1462. Agricultural research facilities study. SUBTITLE K-—FUNDING AND MISCELLANEOUS PROVISIONS V. Sec. 1463. Authorization for appropriations for existing and certain new agri- cultural research programs. Sec. 1464. Authorization for appropriations for extension education. Sec. 1465. Extension programs for Guam and the Virgin Islands of the United States. Sec. 1466. Amendments to the Hatch Act. Sec. 1467. Payment of funds. Sec. 1468. Withholding of funds. Sec. 1469. Auditing, reporting, bookkeeping, and administrative requirements. Sec. 1470. Rules and regulations. TITLE XV—RURAL DEVELOPMENT AND CONSERVATION Sec. 1501. Agricultural conservation program. Sec. 1502. Inclusion of aquaculture and human nutrition among the basic func- tions of the Department of Agriculture.
PUBLIC LAW 95-113—SEPT. 29, 1977 91 STAT. 917 TABLE or CONTENTS—Continued TITLE XV—RURAL DEVELOPMENT AND CONSERVATION—Continued Sec. 1503. Aquaculture loan authority. See. 1504. Disposition of excess Federal property to rural fire forces. Sec. 1505. Rural community fire protection program. Sec. 1506. Congressional approval of watershed protection and flood prevention projects. Sec. 1507. Congressional approval of resource conservation and development project loans. Sec. 1508. Watershed loan authority. Sec. 1509. Multiyear set-aside. Sec. 1510. Authority to make deferred loan payments. Sec. 1511. Critical lands resource conservation program. TITLE XVI—FEDERAL GRAIN INSPECTION Sec. 1601. Records. Sec. 1602. Supervision fees. Sec. 1603. Establishment of temporary advisory committee. Sec. 1604. Technical amendments. Sec. 1605. Studies of grain inspection and weighing; effective date. Sec. 1606. Miscellaneous amendments. Sec. 1607. Conforming amendments. Sec. 1608. Retention of designations following convictions. TITLE XVII—WHEAT AND WHEAT FOODS RESEARCH AND NUTRITION EDUCATION ACT Sec. 1701. Short title. Sec. 1702. Findings and declaration of policy. Sec. 1703. Definitions. Sec. 1704. Issuance of orders. Sec. 1705. Permissive terms in orders. Sec. 1706. Required terms in orders. Sec. 1707. Exemption. Sec. 1708. Requirement of referendum. Sec. 1709. Refund. Sec. 1710. Petition and review. Sec. 1711. Enforcement. Sec. 1712. Suspension and termination of orders. Sec. 1713. Investigations: power to subpena and take oaths and aflSrmations: aid of courts. Sec. 1714. Certification of organizations. Sec. 1715. Effect on other programs. Sec. 1716. Regulations. Sec. 1717. Provisions applicable to amendments. Sec. 1718. Separability. Sec. 1719. Authorization. TITLE XVIII—DEPARTMENT OF AGRICULTURE ADVISORY COMMITTEES Sec. 1801. Purposes. Sec. 1802. Definitions. Sec. 1803. Establishment of advisory committees. Sec. 1804. Additional duties of the Secretary. Sec. 1805. Membership on advisory committees. Sec. 1806. Advisory committee charter requirements—operating costs. Sec. 1807. Annual report. Sec. 1808. Budget prohibitions. Sec. 1809. Termination of advisory committees. TITLE XIX—EFFECTIVE DATE Ses. 1901. Effective date. T I T L E I—PAYMENT LIMITATION FOR WHEAT, F E E D GRAINS, UPLAND COTTON, AND RICE PAYMENT LIMITATION SEC. 101. Notwithstanding any other provision of law— ^ USC 1308. (1) The total amount of payments which a person shall be entitled to receive under—
91 STAT. 918 PUBLIC LAW 95-113—SEPT. 29, 1977 (A) one or more of the annual programs established under the 7 use 1421 note. Agricultural Act of 1949, as amended, and the Agricultural 7 use 1281. Adjustment Act of 1938, as amended, for wheat, feed grains, and upland cotton shall not exceed $40,000 for the 1978 crop and $45,000 for the 1979 crop; (B) the annual rice program established under such Acts shall not exceed $52,250 for the 1978 crop and $50,000 for the 1979 crop; and (C) one or more of the annual programs established under such Acts for wheat, feed grains, upland cotton, and rice shall not exceed $50,000 for each of the 1980 and 1981 crops. "Payments." (2) The term "payments" as used in this section shall not include loans or purchases, or any part of any payment which is determined by the Secretary of Agriculture to represent compensation for disaster loss or resource adjustment (excluding land diversion payments) or public access for recreation. (3) If the Secretary determines that the total amount of payments which will be earned by any person under the program in effect for any crop will be reduced under this section, the set-aside acreage for the farm or farms on which such person will be sharing in payments earned under such program shall be reduced to such extent and in such manner as the Secretary determines will be fair and reasonable in relation to the amount of the payment reduction. "Person." (4) The Secretary shall issue regulations defining the term "person" Rules and and prescribing such rules as the Secretary determines necessary to regulations. assure a fair and reasonable application of such limitation: Provided. That the provisions of this section which limit payments to any per- son shall not be apiJlicable to lands owned by States, political subdi- visions, or agencies thereof, so long as such lands are farmed primarily in the direct furtherance of a public function, as determined by the Secretary. The rules for determining whether corporations and their stockholders may be considered as separate persons shall be in accord- ance Avith the regulations issued by tho. Secretary on December 18, Post, p. 919. 1970, under section 101 of the Agricultural Act of 1970. FAMILY FARMS 7 use 2266. SEC. 102. (a) Congress hereby specifically reaffirms the historical policy of the United States to foster and encourage the family farm system of agriculture in this country. Congress firmly believes that the maintenance of the family farm system of agriculture is essential to the social well-being of the Nation and the competitive production of adequate supplies of food and fiber. Congress further believes that any significant expansion of nonfamily owned large-scale corporate farming enterprises will be detrimental to the national welfare. I t is neither the policy nor the intent of Congress that agriciiltural and agriculture-related programs be administered exclusively for family farm operations, but it is the policy and the express intent of Congress that no such program be administered in a manner th,at will place the family f^rm operation at an unfair economic disadvantage. Annual report to (b) In order that Congress may be better informed regarding the Congress. status of the family farm system of agriculture in the United States, Contents. tlie Secretary of Agriculture shall submit to Congress, not later than July 1 of each year, a written report containing current information on trends in family farm operations and comprehensive national and State-by-State data on nonfamily farm operations in the United States. The Secretary shall also include in each such report (1) infor- mation on how existing agricultural and agriculture-related programs
PUBLIC LAW 95-113—SEPT. 29, 1977 91 STAT. 919 are being administered to enhance and strengthen the family farm sys- tem of agriculture in the United States, (2) an assessment of how Fed- eral laws may encourage the growth of nonfamily farm operations, and (3) such other information as the Secretary deems appropriate or determines would aid Congress in protecting, preserving, and strength- ening the family farm system of agriculture in the United States. STUDY ON PROHIBITING PAYMENTS TO CERTAIN LEGAL ENTITIES SEC. 103. I n furtherance of the policy stated in section 102 of this Report to Act, the Secretary of Agriculture shall conduct a study and repoit to Congress. Congress no later than J a n u a r y 1,1979, on the impact on participation 7 u s e 2266 note. in t h e wheat, feed grain, cotton, and rice programs and the production of such commodities in carrying out a statutory provision such as that included in the Food and Agriculture Act of 1977, as passed by the Senate on M a y 24,1977, prohibiting the making of payments to certain corporations and other entities under such programs. T h e study shall. in addition, assess the impact of extending the prohibition against making commodity program payments to tenants on land owned by such corporations and other entities which would be excluded from payments under such a provision. T h e study shall utilize, to tlie great- est extent possible, the information on commodity program payments compiled by the Agricultural Stabilization and Conservation Service in determining payment eligibility under section 101 of the Agricul- tural Act of 1970, as amended, and section 101 of this Act. The Secre- Infra. tary may collect such other information as may be necessary to determine the impact of such a statutory provision and to identify the number and characteristics of producers that w^ould be affected by such a provision. CONFORMING AMENDMENT SEC. 104. Section 101 (1) of the Agricultural Act of 1970, as amended, Payments, is amended to read as follows: limitation. " ( 1 ) T h e total amount of payments which a pei-son shall be entitled 7 use 1307. to receive under one or more of the annual programs established by titles I V , y , and V I of this Act for the 1974 through 1976 crops of the commodities and by titles I V and V of the Food and Agriculture Act of 1977 and titles I V , V , and V I of this Act for the 1977 crop of the commodities shall not exceed $20,000.". T I T L E II—DAIRY AND B E E K E E P E E PROGRAMS DAIRY BASE PLANS SEC. 201. Section 201 (e) of the Agricultural Act of 1970, as amended, 7 USe 608c note, is amended to read as follows: " ( e ) T h e provisions of this section shall not be effective after December 31, 1981, except with respect to orders providing for class I base plans issued prior to such date, but in no event shall any order so i issued extend or be effective beyond December 31, 1984.". PRODUCER HANDLERS SEC. 202. T h e legal status of producer handlers of milk under the 7 USe 608c note, provisions of the Agricultural Adjustment Act, as reenacted and amended by t h e Agricultural Marketing Agreement Act of 1937, as amended, shall be the same subsequent to the adoption of the amend- 7 USe 601 note, ment made by the Food and Agricultuie Act of 1977 as it was prior thereto.
91 STAT. 920 PUBLIC LAW 95-113—SEPT. 29, 1977 M I L K PRICE SUPPORT 7 u s e 1446. SEC. 203. Section 201 of the Agricultural Act of 1949, as amended, Post, p. 949. is amended by— (1) striking out the second sentence in subsection (c) and inserting in lieu thereof a new sentence as follows: "Notwithstand- ing the foregoing, effective for the period beginning on the effec- tive date of the Food and Agriculture Act of 1977 and ending March 31, 1979, the price of milk shall be supported at not less than 80 per centum of the parity price therefor."; and Adjustments. (2) adding at the end thereof a new subsection (d) as follows: "(d) Effective for the period beginning on the effective date of the Food and Agriculture Act of 1977 and ending March 31, 1981, the support price of milk shall be adjusted by the Secretary at the begin- ning of each semiannual period after the beginning of the marketing year to reflect any estimated change in the parity index during such semiannual period. The Secretary is authorized to adjust the support price of milk at the beginning of each remaining quarter in the market- ing year to reflect any substantial change in the parity index during Announcement. such quarterly period. Any adjustment under this subsection shall be announced by the Secretary not more than thirty days prior to the beginning of the period to which it is applicable.". TRANSFER OP DAIRY PRODUCTS TO T H E MILITARY AND VETERANS HOSPITALS 7 use 1446a. SEC. 204. Section 202 of the Agricultural Act of 1949, as amended, is amended by striking out "1977" in subsections (a) and (b) and inserting in lieu thereof "1981". DAIRY I N D E M N I T Y PROGRAM 7 use 450j. SEC. 205. The Act of August 13, 1968 (82 Stat. 750, as amended; 7 U.S.C. 450 j , k, and 1), is amended by— V > (1) inserting after the first sentence a new sentence as follows: "The Secretary is also authorized to make indemnity payments for milk, or cows producing such milk, at a fair market value to any dairy farmer who is directed to remove his milk from com- mercial markets because of (1) the presence of products of nuclear radiation or fallout if such contamination is not due to the fault of the farmer, or (2) residues of chemicals or toxic sub- stances not included under the first sentence of this section if such chemicals or toxic substances were not used in a manner contrary to applicable regulations or labeling instructions provided at the time of use and the contamination is not due to the fault of the farmer: Provided^ That no indemnity payment may be made for contamination resulting from such residues of chemicals or toxic substances if the Secretary determines within thirty days after the date of application for payment that other legal recourse is available to the farmer."; and 7 use 450/. (2) striking out "June 30, 1977" in section 3 and inserting in lieu thereof "September 30,1981". STANDARD OF QUALITY FOR ICE CREAM Regulation. SEC. 206. Section 203(c) of the Agricultural Marketing Act of 1946 7 use 1622. is amended by adding at the end thereof the following: "Within thirty days after the enactment of the Food and Agriculture Act of 1977, the Secretary shall by regulation adopt a standard of quality for ice cream which shall provide that ice cream shall contain at least 1.6 pounds of
PUBLIC LAW 95-113—SEPT. 29, 1977 91 STAT. 921 total solids to the gallon, weigh not less than 4.5 pounds to the gallon and contain not less than 20 percent total milk solids, constituted of not less than 10 percent milkfat. In no case shall the content of milk solids not fat be less than 6 percent. Whey shall not, by weight, be more than 25 percent of the milk solids not fat. Only those products which meet the standard issued by the Secretary may bear a symbol thereon indicating that they meet the Department of Agriculture standard for 'ice cream'.". BEEKEEPER I N D E M N I T Y PROGRAM SEC. 207. Section 804 (f) of the Agricultural Act of 1970, as amended, 7 USC 135b note. is amended by striking out "December 31, 1977" and inserting in lieu thereof "September 30, 1981". TITLE III—WOOL AND MOHAIR , DECLARATIOX OF POLICY SEC. 301. Section 702 of the National Wool Act of 1954, as amended, 7 USC 1781. is amended to read as follows: "SEC. 702. It is hereby recognized that wool is an essential, strategic, and energy-efficient commodity which is not produced in the United States in sufficient quantities and grades to meet the domestic needs; and that the desired domestic production of wool is impaired by pred- atory animals and by the depressing effects of wide fluctuations in the price of wool in the world markets. It is hereby declared to be the policy of Congress, as a measure of national security and to pro- mote the general economic welfare, a positive balance of trade, and the efficient use of the Nation's resources, to encourage the continued domestic production of wool at prices fair to both producers and con- sumers in a manner which will assure a viable domestic wool industry in the future.". EXTENSION o r ACT; SUPPORT PRICE SEC. 302. Section 703 of the National Wool Act of 1954, as amended, 7 USC 1782. is amended by— (1) striking out "1977" in subsection (a) and inserting in lieu thereof "1981"; (2) striking out "1977" in subsection (b) and inserting in lieu thereof "1976"; (3) inserting immediately before the period at the end of subsection (b) a new proviso as follows: ": Provided further^ That for the marketing years beginning January 1, 1977, and ending December 31, 1981, the support price for shorn wool shall be 85 per centum (rounded to the nearest full cent) of the amount calculated according to the foregoing formula"; and (4) striking out "1977" in subsection (c) and inserting in lieu thereof "1976". TITLE IV—WHEAT LOAN R A T E S A N D TARGET PRICES FOR T H E 19 77 THROUGH 1 9 8 1 CROPS SEC. 401. Effective only for the 1977 through 1981 crops of wheat, the Agricultural Act of 1949, as amended, is amended to add subsec- tions (a) through (c) to new section 107A as follows: "SEC. 107A. Notwithstanding any other provision of law— 7 USC 1445b.
91 STAT. 922 PUBLIC LAW 95-113—SEPT. 29, 1977 Loans and "(a) The Secretary shall make available to producers loans and purchases. purchases at such level, not less than $2.25 per bushel for the 1977 crop of wheat and $2.35 per bushel for each of the 1978 through 1981 crops of wheat, nor, in the case of each of the 1977 through 1981 crops, in excess of 100 per centum of parity, as the Secretary determines will maintain its competitive relationship to other grains in domestic and Reduction. export markets: Provided^ That if the Secretary determines that the average price of wheat received by producers in any marketing year is not more than 105 per centum of the level of loans and purchases for wheat for such marketing year, the Secretary may reduce the level of loans and purchases for wheat for the next marketing year by the amount the Secretary determines necessary to maintain domestic and export markets for grain, except that the level of loans and purchases shall not be reduced bj^ more than 10 per centum in any year nor below $2.00 per bushel. Payments. " (b) (1) (A) In addition, the Secretary shall make available to pro- ducers payments for each of the 1977 through 1981 crops of wheat in Computation. an amount computed as provided in this subsection. Payments for the 1977 crop shall be computed by multiplying (i) the payment rate, by (ii) the allotment for the farm for such crop, by (iii) the projected yield established for the farm for such crop with such adjustments as the Secretary determines necessary to provide a fair and equitable yield. Payments for each of the 1978 through 1981 crops shall be com- puted by multiplying (i) the payment rate, by (ii) the farm program acreage for the crop, by (iii) the farm program payment yield for the crop. In no event shall payments be made under this paragraph for any of the 1978 through 1981 crops on a greater acreage than the acreage actually planted to wheat. "(B) The payment rate for wheat shall be the amount by which the higher of— "(i) the national weighted average market price received by farmers during the first five months of the marketing year for such crop, as determined by the Secretary, or "(ii) the loan level determined under subsection (a) of this section for such crop Established is less than the established price per bushel. The established price for prices. wheat shall be $2.90 per bushel for the 1977 crop and $3.00 per bushel for the 1978 crop: Provided^ That for the 1977 crop, the established price shall be $2.47 per bushel with respect to any acreage not planted to wheat within the wheat acreage allotment: Provided further^ That for the 1978 crop, the established price shall be $3.05 per bushel if the 1978 crop of wheat is 1.8 billion bushels or less. For the 1979 crop, the established price shall be $3.00 per bushel adjusted to reflect any change in (i) the average adjusted cost of production for the two crop years immediately preceding the 1979 crop year from (ii) the average adjusted cost of production for the two crop years immediately preced- ing the 1978 crop year. For the 1980 and 1981 crops, the established price shall be the established price for the previous year's crop adjusted to reflect any change in (i) the average adjusted cost of pro- duction for the two crop years immediately preceding the year for which the determination is made from (ii) the average adjusted cost of production for the two crop years immediately preceding the year previous to the one for which the determination is made. The adjusted cost of production for each of such years shall be determined by the Secretary on the basis of such information as the Secretary finds neces- sary and appropriate for the purpose and shall be limited to (i) vari-
PUBLIC LAW 95-113—SEPT. 29, 1977 91 STAT. 923 able costs, (ii) machinery ownership costs, and (iii) general farm overhead costs, allocated to the crops involved on the basis of the pro- portion of the value of the total production derived from each crop. "(C) Notwithstanding the foregoing provisions of this section, in Emergency the event the Secretary adjusts the level of loans and purchases for compensation. wheat in accordance with the proviso in subsection (a) of this section, the Secretary shall provide emergency compensation by increasing the established price payments for wheat by such amount as the Secretary determines necessary to provide the same total return to producers as if the adjustment in the level of loans and purchases had not been made: Provided^ That any such increase in established price payments shall not be included in the payments subject to limitation under the provisions of section 101 of the Food and Agriculture Act of 1977. " (D) The total quantity on which payments would otherwise be pay- able to a producer on a farm for any crop under this paragraph shall be reduced by the quantity on which any disaster paymen*: is made to the producer for the crop under paragraph (2) of this subsection. "(2) (A) Effective only with respect to the 1978 and 1979 crops of Prevented wheat, if the Secretary determines that the producers on a farm are planting disaster prevented from planting any portion of the acreage intended for wheat payments. to wheat or other nonconserving crops because of drought, flood, or other natural disaster, or other condition beyond the control of the producers, the Secretary shall make a prevented planting disaster pay- ment to the producers on the number of acres so affected but not to exceed the acreage planted to wheat for harvest (inc^iding any acre- age which the producers were prevented from planting to wheat or other nonconserving crop in lieu of wheat because of drought, flood, or other natural disaster, or other condition beyond the control of the producers) in the immediately preceding year, multiplied by 75 per centum of the farm program payment yield established by the Secre- tary times a payment rate equal to 33^3 per centum of the established price per bushel for wheat. "(B) Effective only with respect to the 1978 and 1979 crops of Farm disaster wheat, if the Secretary determines that because of drought, flood, or payments. other natural disaster, or other condition beyond the control of the producers, the total quantity of wheat which the producers are able to harvest on any farm is less than the result of multiplying 60 per centum of the farm program payment yield established by the Secre- tary for such crop by the acreage planted for harvest for such crop, the Secretary shall make a farm disaster payment to the producers at a rate equal to 50 per centum of the established price for the crop for the deficiency in production below 60 per centum for the crop. "(C) In the case of the 1977 crop of wheat, disaster payments for Computation. prevented planting shall be compu*-ed as provided in section 107 of this Act, as amended for the 1974 through 1977 crops by the Agricul- ture and Consumer Protection Act of 1973, and disaster payments for 7 u s e 1445a. low yield shall be computed in accordance Avith the formula provided in subparagraph (B) of this paragraph: Provided, That producers may elect to receive clisas^er payments for low yield computed as pro- vided in section 107 of this Act, as amended for the 1974 through 1977 crops by the Agriculture and Consumer Protection Act of 1973: Pro- vided further. That no disaster payments for low yield may be made under this paragraph prior to October 1,1977. "(c) The Secretary shall provide for the sharing of payments made under this section for any farm among the producers on the fann on a fair and equitable basis.".
91 STAT. 924 PUBLIC LAW 95-113—SEPT. 29, 1977 PROGRAM ACREAGES AND PAY^IENT YIELDS; SET-ASIDE PROGRAM SEC. 402. Effective only for the 1978 through 1981 crops of wheat, the Agricultural Act of 1949, as amended, is amended by adding sub- Ante, p. 921. sections (d) through (i) to section 107A to read as follows: Proclamation. "(d) (1) The Secretary shall pr(x;laim a national program acreage for each of the 1978 through 1981 crops of wheat. The proclamation shall be made not later than August 15 of each calendar year for the crop harvested in the next succeeding calendar year, except that in the case of the 1978 crop the proclamation shall be made as soon as prac- Revision. ticable after enactment of the Food and Agriculture Act of 1977. The Secretary may revise the national program acreage first proclaimed for any crop year for the purpose of determining the allocation factor under paragraph (2) of this subsection if the Secietary determine? it necessary based upon the latest information, and the Secretary shall proclaim such revised national program acreage as soon as it is made. The national ])rogram acreage for wheat shall be the number of harvested acres the Secretary determines (on the basis of the weighted national average of the farm program payment yields for the crop for which the determination is made) will produce the quantity (less imports) that the Secretary estimates will be utilized domestically and Adjustment. for export during the marketing year for such crop. If the Secretary determines that carryover stocks of wheat are excessive or an increase in stocks is needed to assure desirable carryover, the Secretary may adjust the national program acreage by the amount the Secretary determines will accomplish the desired increase or decrease in carry- over stocks. Program "(2) The Secretary shall determine a program allocation factor for allocation factor each crop of wheat. The allocation factor for wheat shall be deter- mined by dividing the national program acreage for the crop by the number of acres which the Secretary estimates will be harvested for such crop: Provided, That in no event shall the allocation factor for any crop of wheat be more than 100 per centum nor less than 80 per centum. "(3) The individual farm program acreage for each crop of wheat shall be determined by multiplying the allocation factor by the acreage of wheat planted for harvest on the farms for which individual farm program acreages are required to be determined: Provided, That the wheat acreage eligible for payments shall not be further reduced by application of the allocation factor if the producers reduce the acre- age of wheat planted for harvest on the farm from the previous year by at least the percentage recommended by the Secretary in the procla- mation of the national program acreage made not later than August 15 prior to the year in which the crop is harvested, or in the case of the 1978 crop, the proclamation first made after enactment of the Food and Agriculture Act of 1977. The Secretary shall provide fair and equitable treatment for producers on farms on which the acreage of wheat planted for harvest is less than for the preceding year, but the reduction is insufficient to exempt the farm from the application of the allocation factor. In establishing the allocation factor for wheat, the Secretary is authorized to make such adjustment as the Secretary deems necessary to take into account the extent of exemption of farms under the foregoing provisions of this paragraph. Payment yield. "(e) The farm program payment yield for each crop of wheat shall be the yield established for the farm for the previous crop year, adjusted by the Secretary to provide a fair and equitable yield. If no
PUBLIC LAW 95-113—SEPT. 29, 1977 91 STAT. 925 payment yield for wheat was established for the farm in the previous crop year, the Secretary is authorized to determine such yield as the Secretary finds fair and reasonable. Notwithstanding the foregoing provisions of this subsection, in the determination of yields, the Sec- retary shall take into account the actual yields proved by the producer, and neither such yields nor the farm program payment yield estab- ished on the basis of such yields shall be reduced under other provi- sions of this subsection. If the Secretary determines it necessary, the Secretary may establish national. State, or county program payment yields on the basis of historical yields, as adjusted by the Secretary to correct for abnormal factors affecting such yields in the historical period, or, if such data are not available, on the Secretary's estimate of actual yields for the crop year involved. In the event national, State, or county" program payment yields are established, the farm program payment yields shall balance to the national, State, or county program payment yields. "(f) (1) The Secretary shall provide for a set-aside of cropland if Cropland set- the Secretary determines that the total supply of wheat will, in the aside. absence of such a set-aside, likely be excessive taking into account the need for an adequate carryover to maintain reasonable and stable sup- plies and prices and to meet a national emergency. The Secretary shall Announcement. announce any such set-aside not later than August 15 prior to the year in which the crop is harvested, except that in the case of the 1978 crop, the announcement shall be made as soon as practicable after enact- ment of the Food and Agriculture Act of 1977. If a set-aside of crop- land is in effect under this subsection, then as a condition of eligibility for loans, purchases, and payments authorized by this section, the producers on a farm must set aside and devote to conservation uses an acreage of cropland equal to a specified percentage, as determined by the Secretary, of the acreage of wheat planted for harvest for the crop year for which the set-aside is in effect. The Secretary may limit Acreage the acreage planted to wheat. Such limitation shall be applied on a limitation. uniform basis to all wheat-producing farms. The set-aside acreage shall be devoted to conservation uses, in accordance with regulations issued by the Secretary, which will assure protection of such acreage from weeds and wind and water erosion; however, the Secretary may permit, subject to such terms and conditions as the Secretary may pre- scribe, all or any part of the set-aside acreage to be devoted to sweet sorghum, hay, and grazing or the production of guar, sesame, safflower, sunflower, castor beans, mustard seed, crambe, plantago ovato, flax- seed, triticale, oats, rye, or other commodity, if the Secretary deter- mines that such production is needed to provide an adequate supply, is not likely to increase the cost of the price support program, and will not adversely affect farm income. " (2) The Secretary may make land diversion payments to producers Land diversion of wheat, whether or not a set-aside for wheat is in effect, if the Secre- payments. tary determines that such land diversion payments are necessary to assist in adjusting the total national acreage of wheat to desirable goals. Such land diversion payments shall be made to producers on a Contacts, bids farm who, to the extent prescribed by the Secretary, devote to approved conservation uses an acreage of cropland on the farm in accordance wnth land diversion contracts entered into by the Secretary with such producers. The amounts payable to producers under land diversion contracts may be determined through the submission of bids for such contracts by producers in such manner as the Secretary may prescribe or through such other means as the Secretary determines
91 STAT. 926 PUBLIC LAW 95-113—SEPT. 29, 1977 appropriate. In determining the acceptability of contract offers, the Secretary shall take into consideration the extent of the diversion to be undertaken by the producers and the productivity of the acreage diverted. The Secretary shall limit the total acreage to be diverted under agreements in any county or local community so as not to affect adversely the economy of the county or local community. Wildlife habitats. "(3) The set-aside acreage and the additional diverted acreage may be devoted to wildlife food plots or wildlife habitat in conformity with standards established by the Secretary in consultation with wild- Payments, ijfg agencies. The Secretary may pay an appropriate share of the cost of practices designed to carry out the purposes of the foregoing sen- tence. The Secretary may provide for an additional payment on such acreage in an amount determined by the Secretary to be appropriate in relation to the benefit to the general public if the producer agrees to permit, without other compensation, access to all or such portion of the farm, as the Secretary may prescribe, by the general public, for hunting, trapping, fishing, and hiking, subject to applicable State and Federal regulations. Adjustments. "(4) The Secretary may make such adjustments in individual set- aside acreages under this section as the Secretary determines necessary to correct for abnormal factors affecting production, and to give due consideration to tillable acreage, crop-rotation practices, types of soil, soil and water conservation measures, and topography, and such other factors as the Secretary deems necessary. Agreement, "(5) If the operator of the farm desires to participate in the pro- filing. gram formulated under this subsection, the operator shall file an agreement to do so no later than such date as the Secretary may pre- scribe. Loans, purchases, and payments under this section shall be made available to producers on such farm only if the producers set aside and devote to approved soil conserving uses an acreage on the farm equal to the number of acres which the operator agrees to set aside and devote to approved soil conserving uses, and the agreement Termination or shall so provide. The Secretary may, by mutual agreement with the modification. producers, terminate or modify any such agreement entered into pur- suant to this subsection if the Secretary determines such action neces- sary because of an emergency created by drought or other disaster, or in order to prevent or alleviate a shortage in the supply of agricultural commodities. "(g) In any case in which the failure of a producer to comply fully with the terms and conditions of the program formulated under this section precludes the making of loans, purchases, and payments, the Secretary may, nevertheless, make such loans, purchases, and pay- ments in such amounts as the Secretary determines to be equitable in relation to the seriousness of the default. Regulations. "(h) The Secretary is authorized to issue such regulations as the Secretary determines necessary to carry out the provisions of this section. "(i) The Secretary shall carry out the program authorized by this section through the Commodity Credit Corporation.". NONAPPLICABILITY OF CERTIFICATE REQUIREMENTS 7 u s e 1379d SEC. 403. Sections 379d, 379e, 379f, 379g, 379h, 379i, and 379j of the note. Agricultural Adjustment Act of 1938 (which deal with marketing cer- 7 use 1379d-1379j. tificate requirements for processors and exporters) shall not be appli-
PUBLIC LAW 95-113—SEPT. 29, 1977 91 STAT. 927 cable to wheat processors or exporters during the period July 1, 1973, through May 31,1982. SUSPENSION o r MARKETING QUOTAS AND PRODUCER CERTIFICATE PROVISIONS SEC. 404. Sections 331, 332, 333, 334, 335, 336, 338, 339, 379b, and 379c 7 u s e 1331 note. of the Agricultural Adjustment Act of 1938, as amended, shall not 7 u s e be applicable to the 1978 through 1981 crops of wheat. 1331-1333, 1334, 1335, 1336, 1338, F I N A L I T Y OF DETERMINATIONS 1339, 1379b, 1379c. SEC. 405. Effective only for the 1978 through 1981 crops, section 385 of the Agricultural Adjustment Act of 1938, as amended, is amended 7 u s e 1385. by amending the first sentence to read as follows: "The facts consti- tuting the basis for any Soil Conservation Act payment, any payment under the wheat, feed grain, upland cotton, and rice programs author- ized by the Agricultural Act of 1949 and this Act, any loan, or price 7 u s e 1421 note. support operation, or the amount thereof, when officially determined in conformity with the applicable regulations prescribed by the Secre- tary or by the Commodity Credit Corporation, shall be final and conclusive and shall not be reviewable by any other officer or agency of the Government.". SUSPENSION OF QUOTA PROVISIONS SEC. 406. Public Law 74, Seventy-seventh Congress (55 Stat. 203, as 7 u s e 1330 note. amended) shall not be applicable to the crops of wheat planted for 7 u s e 1330, harvest in the calendar years 1978 through 1981. 1340. APPLICATION OF TERMS I N T H E AGRICULTURAL ACT OF 1 9 4 9 SEC. 407. Section 408 (k) of the Agricultural Act of 1949, as added by the Agricultural Act of 1970, as amended, to be effective for the 7 use 1428. 1971 through 1977 crops, shall be effective for the 1978 through 1981 crops, and shall read as follows: REFERENCES TO TERMS MADE APPLICABLE TO W H E A T AND FEED GRAINS "(k) References made in sections 402, 403, 406, and 416 to the terms Post, p. 956. 'support price', 'level of support', and 'level of price support' shall 7 u s e 1736, be considered to apply as well to the level of loans and purchases for 1431. wheat and feed grains under this Act; and references made to the terms 'price support', 'price support operations', and 'price support program' in such sections and in section 401(a) shall be considered as Post, p. 956. applying as well to the loan and purchase operations for wheat and feed grains under this Act.". COMMODITY CREDIT CORPORATION SALES PRICE RESTRICTIONS FOR WHEAT AND FEED GRAINS SEC. 408. Effective only with respect to the marketing years for the 1978 through 1981 crops, section 407 of the Agricultural Act of 1949, as amended, is amended by— 7 USe 1427. (1) striking out in the third sentence the language following the third colon and inserting in lieu thereof the following: "Fro- vided, That the Corporation shall not sell any of its stocks of wheat, corn, grain sorghum, barley, oats, and rye respectively at
91 STAT. 928 PUBLIC LAW 95-113—SEPT. 29, 1977 less than 115 per centum of the current national average loan rate for the commodity, adjusted for such current market differentials reflecting grade, quality, location, and other value factors as the Secretary determines appropriate, plus reasonable carrying charges."; (2) striking out in the fifth sentence "current basic county sup- port rate including the value of any applicable price-support pay- ment in kind (or a comparable price if there is no current basic county support rate)" and inserting in lieu thereof the following: "current basic county loan rate (or a comparable price if there is no current basic county loan rate)"; and (3) striking out in the seventh sentence ", but in no event shall the purchase price exceed the then current support price for such commodities" and inserting in lieu thereof the following: "or unduly affecting market prices, but in no event shall the purchase price exceed the Corporation's minimum sales price for such com- modities for unrestricted use". XONAPPLICABILITY OF SECTION 1 0 7 OF T H E AGRICULTURAL ACT OF 1 9 4 9 TO T H E 1 9 7 7 THROUGH 1 9 8 1 CROPS OF W H E A T 7 u s e 1445a SEC. 409, Section 107 of the Agricultural Act of 1949, as amended, note. shall not be applicable to the 1977 through 1981 crops of wheat. 7 u s e 1445a. NONAPPLICABILITY OF SECTION 1 0 7 OF T H E AGRICULTURAL ACT OF 1 9 4 9 , AS AMENDED, TO T H E 1 9 7 7 CROP OF W H E A T 7 u s e 1445a SEC. 410. Except as otherwise provided in section 401 of this Act, note. section 107 of the Agricultural Act of 1949, as added by the Agricul- tural Act of 1970, as amended, to be effective only for the 1974 through 1977 crops of wheat, shall not be applicable to the 1977 crop of wheat. TITLE V—FEED GRAINS LOAN RATES AND TARGET PRICES FOR T H E 197 7 THROUGH 1981 CROPS Loans and SEC. 501. Effective only for the 1977 through 1981 crops, the Agri- purchases. cultural Act of 1949, as amended, is amended by adding subsections (a) through (c) to a new section 105A as follows: 7 u s e 1444c. "SEC. 105A. Notwithstanding any other provision of law— "(a) (1) The Secretary shall make available to producers loans and purchases at such level, not less than $2.00 per bushel, for each of the .1977 through 1981 crops of corn, as the Secretary determines will encourage the exportation of feed grains and not result in excessive Reduction. total stocks of feed grains in the United States: Provided^ That if the Secretary determines that the average price of corn received by pro- ducers in any marketing year is not more than 105 per centum of the level of loans and purchases for corn for such marketing year, the Sec- retary may reduce the level of loans and purchases for corn for the next marketing year by the amount the Secretary determines necessary to maintain domestic and export markets for grain, except that the level of loans and purchases shall not be reduced by more than 10 per centum in any year nor below $1.75 per bushel. "(2) The Secretary shall make available to producers loans and purchases on each of the 1977 through 1981 crops of barley, oats, and rye, respectively, at such level as the Secretary determines is fair and reasonable in relation to the level that loans and purchases are made available for corn, taking into consideration the feeding value of such
PUBLIC LAW 95-113—SEPT. 29, 1977 91 STAT. 929 commodity in relation to corn and other factors specified in section 401(b) of this Act, and on each crop of grain sorghums at such level 7 use 1421. as the Secretary determines is fair and reasonable in relation to the level that loans and purchases are made available for corn, taking into consideration the feeding value and average transportation costs to market of grain sorghums in relation to corn. "(b) (1) (A) In addition, the Secretary shall make available to pro- Payments, ducers payments for each of the 1977 through 1981 crops of corn, grain sorghums, and, if designated by the Secretary, oats and barley, in an amount computed as provided in this subsection. Payments for the 1977 crop shall be computed by multiplying (i) the payment rate, by (ii) the allotment for the farm for such crop, by (iii) the yield estab- lished for the farm for the preceding crop with such adjustments as the Secretary determines necessary to provide a fair and equitable yield. Payments for each of the 1978 through 1981 crops shall be com- puted by multiplying (i) the payment rate, by (ii) the farm program acreage for the crop, by (iii) the farm program payment yield for the crop. In no event shall payments be made under this paragraph for any of the 1978 through 1981 crops on a greater acreage than the acre- age actually planted to such feed grains. "(B) The payment rate for corn shall be the amount by which the higher of— "(1) the national weighted average market price received by farmers during the first five months of the marketing year for such crop, as determined by the Secretary, or "(2) the loan level determined under subsection (a) for such crop is less than the established price per bushel. The established price for Established price corn shall be $2.00 per bushel in the case of the 1977 crop, except that per bushel. the established price shall be $1.70 per bushel with respect to any acre- age not planted to corn within the feed grain allotment. The estab- Adjusted cost of lished price for corn shall be $2.10 per bushel in the case of the 1978 production. crop, and for the 1979 through 1981 crops the established price shall be the established price for the previous year's crop adjusted to reflect any change in (i) the average adjusted cost of production for the two crop years immediately preceding the year for which the determination is made from (ii) the average adjusted cost of production for the two crop years immediately preceding the year previous to the one for which the determination is made. The adjusted cost of production for each of such years shall be determined by the Secretary on the basis of such information as the Secretary finds necessary and appropriate for the purpose and shall be limited to (i) variable costs, (ii) machin- ery ownership costs, and (iii) general farm overhead costs, allocated to the crops involved on the basis of the proportion of the value of the total production derived from each crop. "(C) Notwithstanding the foregoing provisions of this section, in Emergency the event the Secretary adjusts the level of loans and purchases for compensation. corn in accordance with the proviso in subsection (a) (1) of this sec- tion, the Secretary shall provide emergency compensation by increas- ing the established price payments for com by such amount as the Secretary determines necessary to provide the same total return to producers as if the adjustment in the level of loans and purchases had not been made: Provided., That any such increase in established price payments shall not be included in the payments subject to limitation under the provisions of section 101 of the Food and Agriculture Act of 1977. "(D) The payment rate for grain sorghums and, if designated by the Secretary, oats and barley, shall be such rate as the Secretary
91 STAT. 930 PUBLIC LAW 95-113—SEPT. 29, 1977 determines fair and reasonable in relation to the rate at which •' payments are made available for com. " ( E ) The total quantity on which payments would otherwise be payable to a producer on a farm for any crop under this paragraph shall be reduced by the quantity on which any disaster payment is made to the producer for the crop under paragraph (2) of this subsection. Prevented "(2) (A) Effective only with respect to the 1978 and 1979 crops of planting disaster feed grains, if the Secretary determines that the producers on a farm payments. jjre prevented from planting any portion of the acreage intended for feed grains to feed grains or other nonconserving crops because of drought, flood, or other natural disaster, or other condition beyond the control of the producers, the Secretary shall make a prevented planting disaster payment to the producers on the number of acres so affected but not to exceed the acreage planted to feed grains for harvest (including any acreage which the producers were prevented from planting to feed grains or other nonconserving crop in lieu of feed grains because of drought, flood, or other natural disaster, or other condition beyond the control of the producers) in the immediately pre- ceding year multiplied by 75 per centum of the farm program pay- ment yield for feed grains established by the Secretary times a payment rate equal to 33i/^ per centum of the established price per bushel. Farm disaster " ( B ) Effective only with respect to the 1978 and 1979 crops of feed payment. grains, if the Secretary determines that because of drought, flood, or other natural disaster, or other condition beyond the control of the producers, the total quantity of feed grains which the producers are able to harvest on any farm is less than the result of multiplying 60 per centum of the farm program payment yield establislied by the Secretary for such crop by the acreage planted for harvest for such crop, the Secretary shall make a farm disaster payment to the pro- ducers at a rate equal to 50 per centum of the established price for the crop for the deficiency in production below 60 per centum for the crop. "(C) In the case of the 1977 crop of feed grains, disaster payments for prevented planting for feed grains shall be computed as provided in section 105 of this Act, as amended for the 1974 through 1977 crops 7 use 1307 note, by the Agriculture and Consumer Protection Act of 1973, and disaster payments for low yield shall be computed in accordance with the formula provided in subparagraph (B) of this paragraph: Provided, That producers may elect to receive disaster payments for low yield 7 use 1444b. computed as provided in section 105 of this Act, as amended for the 1974 through 1977 crops by the Agriculture and Consumer Protection Act of 1973: Provided further, That no disaster payments for low yield may be made under this paragraph prior to October 1, 1977. "(c) The Secretary shall provide for the sharing of payments made under this section for any farm among producers on the farm on a ' fair and equitable basis.". PROGRAM ACREAGES AND P A Y M E N T YIELDS ; SET-ASIDE PROGRAM Proclamation. SEC. 502. Effective only for the 1978 through 1981 crops of feed grains, the Agricultural Act of 1949, as amended, is amended by add- Ante, p. 928. ing subsections (d) through (i) to section 105A to read as follows: "(d) (1) The Secretary shall proclaim a national program acreage for each of the 1978 through 1981 crops of feed grains. The proclama- tion shall be made not later than November 15 of each calendar year Revision. for the crop harvested in the next succeeding calendar year. The Sec- retary may revise the national program acreage first proclaimed for
PUBLIC LAW 95-113—SEPT. 29, 1977 91 STAT. 931 any crop year for the purpose of determining the allocation factor under paragraph (2) of this subsection if the Secretary determines it necessary based upon the latest information, and the Secretary shall proclaim such revised national program acreage as soon as it is made. The national program acreage for feed grains shall be the number of harvested acres the Secretary determines (on the basis of the weighted national average of the farm program payment yields for the crop for which the determination is made) will produce the quantity (less imports) that the Secretary estimates will be utilized domestically and for export during the marketing year for such crop. If the Secretary Adjustment determines that the carryover stocks of feed grains are excessive or an increase in stocks is needed to assure desirable carryover, the Secretary may adjust the national program acreage by the amount the Secretary determines will accomplish the desired increase or decrease in carry- over stocks. " (2) The Secretary shall determine a program allocation factor for Program each crop of feed grains. The allocation factor for feed grains shall be allocation factor. determined by dividing the national program acreage for the crop by the number of acres which the Secretary estimates will be harvested for such crop: Provided^ That in no event shall the allocation factor for any crop of feed grains be more than 100 per centum nor less than 80 per centum. "(3) The individual farm program acreage for each crop of feed grains shall be determined by multiplying the allocation factor by the acreage of feed grains planted for harvest on the farms for which individual farm program acreages are required to be determined: Provided^ That the feed grain acreage eligible for payments shall not be further reduced by application of the allocation factor if the pro- ducers reduce the acreage of feed grains planted for harvest on the farm from the previous year by at least the percentage recommended by the Secretary in the proclamation of the national program acreage made not later than November 15 prior to the year in which the crop is harvested. The Secretary shall provide fair and equitable treatment for producers on farms on which the acreage of feed grains planted for harvest is less than for the preceding year, but the reduction is insufficient to exempt the farm from the application of the allocation factor. In establishing the allocation factor for feed grains, the Sec- Adjustment. retary is authorized to make such adjustment as the Secretary deems necessary to take into accoimt the extent of exemption of farms under the forejToing provisions of this paragraph. "(e) The farm program payment yield for each crop of feed grains Payment yield shall be the yield established for the farm for the previous crop year, adjusted by the Secretary to provide a fair and equitable yield. If no payment yield for feed grains was established for the farm in the previous crop year, the Secretary is authorized to determine such yield as the Secretary finds fair and reasonable. Notwithstanding the fore- going provisions of this subsection, in the determination of vields, the Secretary shall take into account the actual yields proved by the pro- ducer, and neither such yields nor the farm program payment yield established on the basis of such yields shall be reduced under other provisions of this subsection. If the Secretary determines it necessary, the Secretary may establish national. State, or county program pay- ment yields on the basis of historical yields, as adjusted by the Secre- tary to correct for abnormal factors affecting such vields in the historical period, or, if such data are not available, on the Secretary's estimate of actual yields for the crop year involved. In the event national. State, or coimty program payment yields are established, the
91 STAT. 932 PUBLIC LAW 95-113—SEPT. 29, 1977 farm program payment yields shall balance to the national, State, or county program payment yields. Cropland set- "(f) (1) The Secretary shall provide for a set-aside of cropland if aside. the Secretary determines that the total supply of feed grains will, in the absence of such a set-aside, likely be excessive taking into account the need for an adequate carryover to maintain reasonable and stable Announcement. supplies and prices and to meet a national emergency. Any such set- aside shall be announced by the Secretary not later than November 15 of each calendar year for the crop harvested in the next calendar year. If a set-aside of cropland is in effect under this subsection, then as a condition of eligibility for loans, purchases, and payments authorized by this section on corn, grain sorghums, and, if designated by the Sec- retary, barley and oats, respectively, the producers on a farm must set aside and devote to conservation uses an acreage of cropland equal to a specified percentage, as determined by the Secretary, of the feed grain acreage planted for harvest for the crop year for which the set-aside is Limitation. in effect. The Secretary may limit the acreage planted to feed grains. Such limitation shall be applied on a uniform basis to all feed grain- producing farms. The set-aside acreage shall be devoted to conserva- tion uses, in accordance with regulations issued by the Secretary, which will assure protection of such acreage from weeds and wind and water erosion; however, the Secretary may permit, subject to such terms and conditions as the Secretary may prescribe, all or any part of the set- aside acreage to be devoted to sweet sorghum, hay, and grazing or the production of guar, sesame, safflower, sunflower, castor beans, mustard seed, crambe, plantago ovato, flaxseed, triticale, oats, rye, or other commodity, if the Secretary determines that such production is needed to provide an adequate supply, is not likely to increase the cost of the price support program, and will not adversely affect farm income. Land-diversion " (2) The Secretary may make land diversion payments to producers payments. of feed grains, whether or not a set-aside for feed grains is in effect, if the Secretary determines that such land diversion payments are necessary to assist in adjusting the total national acreage of feed grains to desirable goals. Such land diversion payments shall be made to producers on a farm who, to the extent prescribed by the Secretary, devote to approved conservation uses an acreage of cropland on the farm in accordance with land diversion contracts entered into by the Contracts, bids. Secretary with such producers. The amounts payable to producers under land diversion contracts may be determined through the sub- mission of bids for such contracts by producers in such manner as the Secretary may prescribe or through such other means as the Secretary determines appropriate. In determining the acceptability of contract offers, the Secretary shall take into consideration the extent of the diversion to be undertaken by the producers and the productivity of the acreage diverted. The Secretary shall limit the total acreage to be diverted under agreements in any county or local community so as not to affect adversely the economy of the county or local community. "(3) The set-aside acreage and the additional diverted acreage may be devoted to wildlife food plots or wildlife habitat in conformity with standards established by the Secretary in consultation with wildlife Payments. agencies. The Secretary may pay an appropriate share of the cost of practices designed to carry out the purposes of the foregoing sen- tence. The Secretary may provide for an additional payment on such acreage in an amount determined by the Secretary to be appropriate in relation to the benefit to the general public if the producer agrees to permit, without other compensation, access to all or such portion of the farm, as the Secretary may prescribe, by the general public, for hunt-
PUBLIC LAW 95-113—SEPT. 29, 1977 91 STAT. 933 ing, trapping, fishing, and hiking, subject to applicable State and Federal regulations. "(4) The Secretary may make such adjustments in individual set- Adjustments, aside acreages under this section as the Secretary determines necessary to correct for abnormal factors affecting production, and to give due consideration to tillable acreage, crop-rotation practices, types of soil, soil and water conservation measures, and topography, and such other factors as the Secretary deems necessary. "(5) If the operator of the farm desires to participate in the pro- Agreement filing. gram formulated under this subsection, the operator shall file an agree- ment to do so no later than such date as the Secretary may prescribe. Loans, purchases, and payments under this section shall be made avail- able to producers on such farm only if the producers set aside and devote to approved soil conserving uses an acreage on the farm equal to the number of acres which the operator agrees to set aside and devote to approved soil conserving uses, and the agreement shall so provide. The Secretary may, by mutual agreement with the producers, Termination or terminate or modify any such agreement entered into pursuant to modification. this subsection if the Secretary determines such action necessary because of an emergency created by drought or other disaster, or in order to prevent or alleviate a shortage in the supply of agricultural commodities. "(g) In any case in which the failure of a producer to comply fully with the terms and conditions of the program formulated under this section precludes the making of loans, purchases, and payments, the Secretary may, nevertheless, make such loans, purchases, and pay- ments in such amounts as the Secretary determines to be equitable in relation to the seriousness of the default. "(h) The Secretary is authorized to issue such regulations as the Regulations Secretary determines necessary to carry out the provisions of this section. "(i) The Secretary shall carry out the program authorized by this section through the Commodity Credit Corporation.". NONAPPLICABILITY OF SECTION 105 OF THE AGRICULTURAL ACT OF 1949, TO THE 1977 THROUGH 1981 CROPS OF FEED GRAINS SEC. 503. Section 105 of the Agricultural Act of 1949, as amended, 7 USC 1444b shall not be applicable to the 1977 through 1981 crops of feed grains. "°*^- 7 USC 1441 note. NONAPPLICABILITY OF SECTION 1 0 5 OF T H E AGRICULTURAL ACT OF 1 9 4 9 , AS AMENDED, TO T H E 1 9 7 7 CROP OF FEED GRAINS SEC. 504. Except as otherwise provided in section 501 of this Act, 7 USC 1444b section 105 (a) and (b) (1) of the Agricultural Act of 1949, as added "°*«- by the Agricultural Act of 1970, as amended, to be effective only for the 1974 through 1977 crops of feed grains, shall not be applicable to the 1977 crop of feed grains. TITLE VI—UPLAND COTTON BASE ACREAGE ALLOTMENTS; SUSPENSION OF MARKETING QUOTAS, AND RELATED PROVISIONS SEC. 601. Sections 342, 343, 344, 345, 346, and 377 of the Agricultural 7 USC 1342 note, Adjustment Act of 1938, as amended, shall not be applicable to upland "^ ^^^ ^^^^^ cotton of the 1978 through 1981 crops. 1343, 1344, ^ ^ 1345, 1346, 1377.
91 STAT. 934 PUBLIC LAW 95-113—SEPT. 29, 1977 COTTON PRODUCTION I N C E N T I V E S ; LOAN RATE AND TARGET P R I C E ; SET-ASIDE PROGRAM SEC. 602. Effective only with respect to the 1978 through 1981 crops of upland cotton, except as otherwise provided herein, section 103 of 7 use 1444. the Agricultural Act of 1949, as amended, is amended by adding at the end thereof a new subsection (f) as follows: " ( f ) ( 1 ) The Secretary shall, upon presentation of warehouse receipts reflecting accrued storage charges of not more than sixty days, make available for the 1978 through 1981 crops of upland cotton to cooperators nonrecourse loans for a term of ten months from the first day of the month in which the loan is made at such level as will reflect for Strict Low ^Middling one and one-sixteenth inch upland cotton (micronaire 3.5 through 4.9) at average location in the United States the smaller of (i) 85 per centum of the average price (weighted by market and month) of such quality of cotton as quoted in the desig- nated United States spot markets during the four-year period ending J u l y 31 in the year in which the loan level is announced, or (ii) 90 per centum of the average, for the first two full weeks of October of the year in which the loan level is announced, of the five lowest priced growths of the growths quoted for Strict Middling one and one-six- teenth inch cotton C.I.F, ]S^orthern Europe (adjusted downward by the average difference during the period A p r i l 15 through October 15 of the year in which the loan is announced between such average Northern Europe price quotation of such quality of cotton and the market quotations in the designated United States spot markets for Strict Low Middling one and one-sixteenth inch cotton (micronaire 3.5 through 4.9)). The loan level for any crop of cotton shall be determined and announced by the Secretary not later than November 1 of the calendar year preceding the marketing year for which such loan is to be effective, and such level shall not thereafter be changed. Interest rate, The rate of interest on loans to cooperators under the provisions of quarterly this p a r a g r a p h shall be established quarterly by the Commodity establishment. Credit Corporation on the basis of tl:e lowest current interest rate on Nonrecourse ordinary obligations of the United States. Nonrecourse loans provided loans, extension. for in this subsection, shall, upon request of the cooperator during the tenth month of the loan period for the cotton, be made available for an additional term of eight m o n t h s : Provided, T h a t such request to extend the loan period shall not be approved in a month when the average price of Strict Low Middling one and one-sixteenth inch cotton (micronaire 3.5 through 4.9) in the designated spot markets for the preceding month exceeded 130 per centum of the average price of such quality of cotton in such markets for the preceding thirty-six month Import quota, period: Provided further, T h a t whenever the Secretary determines Presidential that the average price of Strict Low Middling one and one-sixteenth establishment. inch cotton (micronaire 3.5 through 4.9) in the designated spot markets Conditions. for a month exceeded 130 per centum of the average price of sucli quality of cotton in such markets for the preceding thirty-six months, notwithstanding any other provision of law, the President shall imme- diately establish and proclaim a special limited global import quota for upland cotton subject to the following conditions: " ( A ) T h e amount of the special quota shall be equal to twenty- one days of domestic mill consumption of upland cotton at the seasonally adjusted average rate of the most recent three months for which data are available; " ( B ) If a special quota has been established under this subsec- tion during the preceding twelve months, the amount of the quota next established hereunder shall be the smaller of twenty-one days
PUBLIC LAW 95-113—SEPT. 29, 1977 91 STAT. 935 of domestic mill consumption calculated as set forth in clause (A) of this subsection or the amount required to increase the supply to 130 per centum of the demand; "(C) As used in clause (B) of this paragraph, the term 'supply' "Supply." means, using the latest official data of the Bureau of the Census, the United States Department of Agriculture, and the United States Department of the Treasury, the carryover of upland cot- ton at the beginning of the marketing year (adjusted to four hun- dred and eighty-pound bales) in which the special quota is established, plus production of the current crop, plus imports to the latest date available during the marketing year, and the term "Demand." 'demand' means the average seasonally adjusted annual rate of domestic mill consumption in the most recent three months for which data are available, plus the larger of average exports of upland cotton during the preceding six marketing years or cumu- lative exports of upland cotton, plus outstanding export sales for the marketing year in which the special quota is established; and "(D) When a special quota is established under the provisions of this subsection, a ninety-day period from the effective date of the proclamation shall be allowed for entering cotton under such quota. "(2) Notwithstanding the foregoing provisions of this subsection, a special quota period shall not be established that overlaps an existing special quota period. "(3) Notwithstanding any other provision of law, the foregoing provisions of this subsection with respect to extension of the loan period and to proclamation of the special quota shall become effective upon the effective date of the Food and Agriculture Act of 1977 even though the cotton may be of a crop prior to the 1978 crop. "(4) Payments shall be made for each crop of upland cotton to the Payments, producers on each farm at a rate equal to the amount by which the higher of— "(A) the average market price received by farmers for upland cotton during the calendar year which includes the first five months of the marketing year for such crop, as determined by the Secretary, or "(B) the loan level determined under paragraph (1) for such crop is less than the established price per pound times in each case (i) the farm program acreage for cotton, determined in accordance with para- graph (9) of this subsection (but in no event on a greater acreage than the acreage actually planted to cotton for harvest), multiplied by (ii) the farm program payment yield for cotton determined in accordance with paragraph (10) of this subsection. For the 1978 through 1981 Established crops, the established price shall be the established price for the previ- P"ce. ous year's crop adjusted to reflect any change in (i) the average adjusted cost of production for the two crop years immediately pre- ceding the year for which the determination is made from (ii) the average adjusted cost of production for the two crop years immediately preceding the year previous to the one for which the determination is made. The adjusted cost of production for each of such years shall Adjusted cost of be determined by the Secretary on the basis of such information as the production. Secretary finds necessary and appropriate for the purpose and shall be limited to (i) variable costs, (ii) machinery ow^nership costs, and (iii) general farm overhead costs, allocated to the crops involved on the basis of the proportion of the value of the total production derived from each crop: Provided^ That in no event shall the established price for the 1978 crop be less than 52 cents per pound and for each subse-
91 STAT. 936 PUBLIC LAW 95-113—SEPT. 29, 1977 quent crop be less than 51 cents per pound. The total quantity on which payments would otherwise be payable to a producer for any crop under this paragraph shall be reduced by the quantity on which any disaster payment is made to the producer for the crop under paragraph (5) (B) of this subsection. Prevented "(5) (A) Effective only with respect to the 1978 and 1979 crops of planting disaster upland cotton, if the Secretary determines that the producers on a farm payments. are prevented from planting any portion of the acreage intended for cotton to cotton or other nonconserving crops because of drought, flood, or other natural disaster, or other condition beyond the control of the J- producers, the Secretary shall make a prevented planting disaster pay- ment to the producers on the number of acres so affected but not to exceed the acreage planted to cotton for harvest (including any acre- age which the producers were prevented from planting to cotton or other nonconserving crop in lieu of cotton because of drought, flood, or other natural disaster, or other condition beyond the control of the producers) in the immediately preceding year, multiplied by 75 per centum of the farm program payment yield established by the Secre- tary times a payment rate equal to 33i/^ per centum of the established price for the crop. "(B) Effective only with respect to the 1978 and 1979 crops of ^ upland cotton, if the Secretary determines that because of drought, flood, or other natural disaster, or other condition beyond the control of the producers, the total quantity of cotton which the producers are able to harvest on any farm is less than the result of multiplying 75 per centum of the farm program payment yield established by the Sec- retary for such crop by the acreage planted to harvest for such crop, the Secretary shall make a farm disaster payment to the producers at a rate equal to 331/^ per centum of the established price for the crop for the deficiency in production below 75 per centum for the crop. Payment sharing. "(6) The Secretary shall provide for the sharing of payments made under this subsection for any farm among the producers on the farm on a fair and equitable basis. National program "(7) The Secretary shall establish for each of the 1978 through 1981 acreage. crops of upland cotton a national program acreage. Such national pro- Announcement. gram acreage shall be announced by the Secretary not later than December 15 of the calendar year preceding the year for which such Revision. acreage is established. The Secretary may revise the national pro2:ram acreage first announced for any crop year for the purpose of deter- mining the allocation factor under paragraph (8) of this subsection if the Secretary determines it necessary based upon the latest informa- tion, and the Secretary shall announce such revised national program acreage as soon as it has been made. The national program acreage shall be the number of harvested acres the Secretary determines (on the basis of the estimated weighted national average of the farm program yields for the crop for which the determination is made) will produce the quantity (less imports) that the Secretary estimates will be uti- lized domestically and for export during the marketing year for such Adjustment. crop. The national program acreage shall be subject to such adjust- ment as the Secretary determines necessary, taking into consideration the estimated carryover supply, so as to provide for an adequate but not excessive total supply of cotton for the marketing year for the crop for which such national program acreage is established. In no event shall the national program acreage be less than 10 million acres. Allocation factor. "(8) The Secretary shall determine a program allocation factor for each crop of upland cotton. The allocation factor (not to exceed 100 per centum) shall be determined by dividing the national program
PUBLIC LAW 95-113—SEPT. 29, 1977 91 STAT. 937 acreage for the crop by the number of acres which the Secretary esti- mates will be harvested for such crop. "(9) The individual farm program acreage for each crop of upland cotton shall be determined by multiplying the allocation factor by the acreage of cotton planted for harvest on the farms for which indi- vidual farm program acreages are required to be determined: Pro- vided^ That the cotton acreage eligible for payment on a farm shall not be further reduced by application of the allocation factor if the pro- ducers reduce the acreage of cotton planted for harvest on the farm from the previous year by at least the percentage recommended by the Secretary in the announcement of the national program acreage made not later than December 15 of the calendar year preceding the year for which such acreage is established. The Secretary shall provide fair and equitable treatment for producers on farms on which the acreage of i cotton planted for harvest is less than for the preceding year, but the reduction is insufficient to exempt the farm from the application of the allocation factor. In establishing the allocation factor, the Secretary is authorized to make such adjustment as the Secretary deems neces- sary to take into account the extent of exemption of farms under the foregoing provisions of this paragraph. "(10) The farm program payment yield for each crop of upland Payment yields, cotton shall be determined on the basis of the actual yields per har- vested acre on the farm for the preceding three years: Provided^ That the actual yields shall be adjusted by the Secretary for abnormal yields in any year caused by drought, flood, or other natural disaster, or other condition beyond the control of the producers. In case farm yield data for one or more years are unavailable or there was no production, the Secretary shall provide for appraisals to be made on the basis of actual yields and program payment yields for similar farms in the area for which data are available. Notwithstanding the foregoing pro- visions of this paragraph, in the determination of yields, the Secre- tary shall take into account the actual yields proved by the producer, and neither such yields nor the farm program payment yield estab- lished on the basis of such yields shall be reduced under other provi- sions of this paragraph. If the Secretary determines it necessary, the Secretary may establish national. State, or county program payment yields on the basis of historical yields, as adjusted by the Secretary to correct for abnormal factors aifecting such yields in the historical period, or, if such data are not available, on the Secretary's estimate of actual yields for the crop year involved. In the event national. State, or county program payment yields are established, the farm program payment yields shall balance to the national, State, or county program payment yields. "(11) (A) The Secretary shall provide for a set-aside of cropland if Cropland set- the Secretary determines that the total supply of upland cotton will, aside. in the absence of such a set-aside, likely be excessive taking into account the need for an adequate carryover to maintain reasonable and stable supplies and prices and to meet a national emergency. If a set- aside of cropland is in effect under this paragraph, then as a condition of eligibility for loans, purchases, and payments on upland cotton, the producers on a farm must set aside and devote to conservation uses an acreage of cropland equal to a specified percentage as determined by the Secretary (but not to exceed 28 per centum), of the acreage of upland cotton planted for harvest for the crop year for which a set-aside is in effect. The set-aside acreage shall be devoted to conser- Regulations. vation uses in accordance with regulations issued by the Secretary which will assure protection of such acreage from weeds and wind and water erosion; however, the Secretary may permit, subject to such
91 STAT. 938 PUBLIC LAW 95-113—SEPT. 29, 1977 terms and conditions as the Secretary may prescribe, all or any part of the set-aside acreage to be devoted to sweet sorghum, hay, and grazing or the production of guar, sesame, safflower, sunflower, castor beans, mustard seed, crambe, plantago ovato, flaxseed, triticale, oats, rye, or other commodity, if the Secretary determines that such pro- duction is needed to provide an adequate supply, is not likely to increase the cost of the price support program, and will not adversely Limitation. affect farm income. The Secretary may limit the acreage planted to upland cotton. Such limitation shall be applied on a uniform basis to all cotton-producing farms. Producers on a farm who knowingly plant cotton in excess of the permitted cotton acreage for the farm shall be ineligible for cotton loans or payments with respect to that farm. Land diversion "(B) The Secretary may make land diversion payments to producers payments. of upland cotton, whether or not a set-aside for upland cotton is in effect, if the Secretary determines that such land diversion payments are necessary to assist in adjusting the total national acreage of upland Contracts. cotton to desirable goals. Such land diversion payments shall be made to producers on a farm who, to the extent prescribed by the Secretary, devote to approved conservation uses an acreage of cropland on the farm in accordance with land diversion contracts entered into by the Secretary with such producers. The amounts payable to producers under land diversion contracts may be determined through the sub- mission of bids for such contracts by producers in such manner as the Secretary may prescribe or through such other means as the Secretary determines appropriate. In determining the acceptability of contract offers, the Secretary shall take into consideration the extent of the diversion to be undertaken by the producers and the productivity of the acreage diverted. The Secretary shall limit the total acreage to be diverted under agreements in any county or local community so as not to affect adversely the economy of the county or local community. Wildlife habitat. "(C) The set-aside acreage and the additional diverted acreage may be devoted to wildlife food plots or wildlife habitat in conformity with standards established by the Secretary in consultation with wild- Payment. life agencies. The Secretary may pay an appropriate share of the cost of practices designed to carry out the purposes of the foregoing sentence. The Secretary may provide for an additional payment on such acreage in an amount determined by the Secretary to be appro- priate in relation to the benefit to the general public if the producer agrees to permit, without other compensation, access to all or such portion of the farm, as the Secretary may prescribe, by the general public, for hunting, trapping, fishing, and hiking, subject to applicable State and Federal regulations. Agreement, "(12) If the Operator of the farm desires to participate in the pro- "^^"8- gram formulated under this subsection, the operator shall file an agreement to do so no later than such date as the Secretary ma}^ pre- scribe. Loans, purchases, and payments under this subsection shall be made available to the producers on such farm only if the producers set aside and devote to approved soil conserving uses an acreage on the farm equal to the number of acres which the operator agrees to set aside and devote to approved soil conserving uses, and the agreement Termination or shall SO provide. The Secretary may, by mutual agreement with the modification. producers, terminate or modify any such agreement entered into pur- suant to this subsection if the Secretary determines such action necessary because of an emergency created by drought or other disas- ter, or in order to alleviate a shortage in the supply of agricultural commodities.
PUBLIC LAW 95-113—SEPT. 29, 1977 91 STAT. 939 "(13) The Secretary shall provide adequate safeguards to protect Safeguards, the interests of tenants and sharecroppers. " (14) In any case in which the failure of a producer to comply fully with the terms and conditions of the program formulated under this subsection precludes the making of loans, purchases, and payments, the Secretary may, nevertheless, make such loans, purchases, and pay- ments in such amounts as the Secretary determines to be equitable in relation to the seriousness of the default. "(15) The Secretary is authorized to issue such regulations as the Regulations. Secretary determines necessary to carry out the provisions of this subsection. "(16) The Secretary shall carry out the program authorized by this subsection through the Commodity Credit Corporation. "(17) The provisions of subsection 8(g) of the Soil Conservation and Domestic Allotment Act, as amended (relating to assignment of 16 USC 590h. payments), shall apply to payments under this subsection.". COMMODITY CREDIT CORPORATION SALES PRICE RESTRICTIONS SEC. 603. Effective only with respect to the period beginning Cotton. August 1,1978, and ending July 31,1982, the tenth sentence of section 407 of the Agricultural Act of 1949, as amended, is amended by strik- 7 USC 1427. ing out all of that sentence through the words "110 per cen'^um of the loan rate, and (2)" and inserting in lieu thereof the following: "Not- withstanding any other provision of law, (1) the Commodity Credit Corporation shall sell upland cotton for unrestricted use at the same prices as it sells cotton for export, in no event, however, at less than 115 per centum of the loan rate for Strict Low Middling one and one- sixteenth inch upland cotton (micronaire 3.5 through 4.9) adjusted for such current market differentials reflecting grade, quality, location, and other value factors as the Secretary determines appropriate plus reasonable carrying charges, and (2)". MISCELLANEOUS COTTON PROVISIONS SEC. 604. (a) Section 408(b) of the Agricultural Act of 1949, as Cooperator. amended, is amended by inserting immediately before the period at the 7 USC 1428. end of the first sentence the following: " : Provided fwrther^ That for the 1978 through 1981 crops of upland cotton, a cooperator shall be a producer on a farm who has set aside the acreage required under sec- tion 103(f)". ^«te, p. 934. (b) Section 408(1) of the Agricultural Act of 1949, as added by the Agricultural Act of 1970, as amended, to be effective for the 1971 through 1977 crops, shall be effective for the 1978 through 1981 crops, and shall read as follows: a REFERENCES TO TERMS MADE APPLICABLE TO UPLAND COTTON "(1) References made in sections 402, 403, 406, and 416 to the Post, p. 956. terms 'support price', 'level of support', and 'level of price support' 7 USC 1736, shall be considered to apply as well to the level of loans and purchases 1431. for upland cotton under this Act; and references made to the terms 'price support', 'price support operations', and 'price support program' in such sections and in section 401(a) shall be considered as applying Post, p. 956. as well to the loan and purchase operations for upland cotton under this Act.". (c) Sections 103(a) and 203 of the Agricultural Act of 1949, as 7 USC 1446d amended, shall not be applicable to the 1978 through 1981 crops. "ote. 7 USC 1444, 1446d.
91 STAT. 940 PUBLIC LAW 95-113—SEPT. 29, 1977 . i,= i -A ; • .!, SKIPROW PRACTICES SEC. 605. Section 374(a) of the Agricultural Adjustment Act of 7 use 1374. 1938, as amended, is amended by striking out "1977" in the last sen- tence and inserting in lieu thereof "1981". PRELIMINARY ALLOTMENTS FOR 1 9 8 2 CROP OF UPLAND COTTON 7 use 1342 note. SEC. 606. Notwithstanding any other provision of law, the perma- nent State, county, and farm base acreage allotments for the 1977 crop of upland cotton, adjusted for any underplantings in 1977 and recon- stituted as provided in section 379 of the Agricultural Adjustment Act 7 use 1379. of 1938, as amended, shall again become effective as preliminary allot- ments for the 1982 crop. EXTRA LONG STAPLE COTTON SEC. 607. Section 101(f) of the Agricultural Act of 1949, as 7 use 1441. amended, is amended by striking out the words "Middling one-inch" appearing in the first sentence and inserting in lieu thereof "Strict Low Middling one and one-sixteenth inch". TITLE VII—RICE NATIONAL ACREAGE ALLOTMENT AND ALLOCATION SEC. 701. Effective beginning with the 1978 crop of rice, section 101 7 use 1352 of the Rice Production Act of 1975 is amended by striking out "1976 and note. and 1977" each place it occurs and inserting in lieu thereof "1976 through 1981". LOAN RATES, TARGET PRICES, AND SET-ASIDE FOR T H E 19 78 THROUGH 1 9 8 1 CROPS SEC. 702. Effective only for the 1978 through 1981 crops of rice, sec- tion 101 of the Agricultural Act of 1949, as amended, is amended by adding a new subsection (h) as follows: 7 use 1441. " (h) Notwithstanding any other provision of law— Established "(1) For the 1978 through 1981 crops of rice, the established P"^^- price for the purpose of making payments under this subsection shall be the established price for the previous year's crop adjusted to reflect any change in (i) the average adjusted cost of produc- tion for the two crop years immediately preceding the year for which the determination is made from (ii) the average adjusted cost of production for the two crop years immediately preceding the year previous to the one for which the determination is made. Adjusted cost of The adjusted cost of production for each of such years shall be production. determined by the Secertary on the basis of such information as the Secretary finds necessary and appropriate for the purpose and shall be limited to (i) variable costs, (ii) machinery ownership costs, and (iii) general farm overhead costs, allocated to the crops involved on the basis of the proportion of the value of the total production derived from each crop. Loans and . . "(2) The Secretary shall make available, to cooperators in the purchases. several States of the United States, loans and purchases for each of the 1978 through 1981 crops of rice at such level as bears the same ratio to the loan level for the preceding year's crop as the established price for each such crop bears to the established price for the preceding year's crop. If the Secretary determines that
PUBLIC LAW 9 5 - 1 1 3 — S E P T . 29, 1977 91 STAT. 941 loans and purchases at the foregoing level for any of the 1978 through 1981 crops would substantially discourage the exporta- tion of rice and result in excessive stocks of rice in the United States, the Secretary may, notwithstanding the foregoing provi- sions of this p a r a g r a p h , establish loans and purchases for such crop or crops at such level, not less than $6.31 per hundredweight nor more than the parity price thereof, as the Secretary deter- mines necessary to avoid such consequences. T h e loans and pur- chases shall be made available to cooperators on a farm with respect to a quantity of rice determined by multiplying the allot- ment by the yield established for the farm, as determined in the manner described in the second sentence of p a r a g r a p h (4) ( A ) of this subsection. " ( 3 ) The Secretary shall make available to cooperators pay- Payments ments for each of the 1978 through the 1981 crops of rice grown in the several States of the United States at a rate equal to the amount by which the established price for the crop of rice exceeds the higher of— " ( A ) the national average market price received by farm- ers during the first five months of the marketing year for such crop, as determined by the Secretary, or " ( B ) the loan level determined under p a r a g r a p h (2) for such crop. " ( 4 ) ( A ) The payments for each such crop shall be made avail- able to cooperators on a farm with respect to a quantity of rice determined by multiplying that portion of the allotment planted to rice by the yield established for the f a r m : Provided^ T h a t an acreage on the farm which the Secretary determines was not planted to rice because of drought, flood, or other natural disaster, or other condition beyond the control of the cooperators shall be considered to be an acreage planted to rice. The yield for the farm for any year shall be determined on the basis of the actual yields per harvested acre for the three preceding years: Provided^ T h a t the actual yields shall be adjusted by the Secretary for abnormal yields in any year caused by drought, flood, other natural disaster, or other condition beyond the control of the cooperators. The total quantity on which payments would otherwise be payable to a cooperator for any crop under this subparagraph shall be reduced by the quantity on which any disaster payment is made to the cooperator on a farm for the crop under this paragraph. " ( B ) Effective only with respect to the 1978 and 1979 crops of Prevented rice, if the Secretary determines that the persons involved in pro- planting disaste ducing rice on a farm are prevented from planting all or any por- payments. tion of the acreage allotments of producers on the farm or the farm acreage allotment to rice or other nonconserving crops because of drought, flood, or other natural disaster, or other condition beyond the control of the producers, the Secretary shall make a prevented planting disaster payment to cooperators on a farm in an amount determined by multiplying (i) the number of such acres so affected, by (ii) the yield established for the farm, by (iii) 331^ per centum of the established price for rice, except that the Secre- tary shall make no payment pursuant to this sentence on a farm from which acres were transferred under section 352(d) of the Agricultural Adjustment Act of 1938, as amended, with respect to 7 USC 1352 the transferred acreage. " ( C ) Effective only with respect to the 1978 and 1979 crops of Farm disaster rice, if the Secretary determines that because of drought, flood, or payments. other natural disaster, or other condition beyond the control of the
91 STAT. 942 PUBLIC LAW 95-113—SEPT. 29, 1977 producers, the total quantity of rice which the persons involved in producing rice on a farm are able to harvest on the acreage allotments of producers on the farm or the farm acreage allotment is less than the result of multiplying 75 per centum of the yield established for the farm by the acreage within the allotment planted to rice for harvest for such crop, the Secretary shall make a farm disaster payment to the cooperators on the farm for the deficiency in production below 75 per centum of the crop at a rate equal to 33i/^ per centum of the established price for the crop. " ( D ) Any payment made under subparagraphs ( B ) and (C) of this p a r a g r a p h with regard to acres transferred under section 7 use 1352. 352(d) of the Agricultural Adjustment Act of 1938, as amended, shall be calculated with respect to the farm yield established on the farm to which such acres were transferred. Cropland set- " ( 5 ) T h e Secretary shall provide for a set-aside of cropland aside. if the Secretary determines that the total supply of rice will, in the absence of such set-aside, likely be excessive taking into account the need for an adequate carryover to maintain reasonable and stable supplies and prices and to meet a national emergency. Eligibility. If a set-aside of cropland is in effect under this p a r a g r a p h , then as a condition of eligibility for loans, purchases, and payments under this subsection, the cooperators on a farm must set aside and devote to conservation uses an acreage of cropland equal to (i) such percentage of the farm acreage allotment as may be speci- fied by the Secretary (not to exceed 30 per centum of the farm acreage allotment), plus, if required by the Secretary, (ii) the acreage of cropland on the farm devoted in preceding years to soil conserving uses, as determined by the Secretary. The set-aside acreage shall be devoted to conservation uses, in accordance with regulations issued by the Secretary, which will assure protection of such acreage from weeds and wind and water erosion; however, the Secretary may permit, subject to such terms and con- ditions as the Secretary may prescribe, all or any p a r t of the set- aside acreage to be devoted to sweet sorghum, hay, and grazing or the production of guar, sesame, safflower, sunflower, castor beans, mustard seed, crambe, plantago ovato, flaxseed, triticale, oats, rye, or other commodity, if the Secretary determines that such production is needed to provide an adequate supply of such com- modities, is not likely to increase the cost of the price support program, and will not adversely affect farm income. Land diversion " ( 6 ) The Secretary may make land diversion payments to payments. cooperators, whether or not a set-aside for rice is in effect, if the Secretary determines that such land diversion payments are neces- sary to assist in adjusting the total national acreage of rice to Contracts. desirable goals. Such land diversion payments shall be made to cooperators on a farm who, to the extent prescribed by the Sec- retary, devote to approved conservation uses an acreage of crop- land on the farm in accordance with land diversion contracts Bids, submittal. entered into by the Secretary with such cooperators. The amounts payable to cooperators under land diversion contracts may be determined through the submission of bids for such contracts by cooperators in such manner as the Secretary may prescribe or through such other means as the Secretary determines appropri- ate. I n determining the acceptability of contract offers, the Sec- retary shall take into consideration the extent of the diversion to
PUBLIC LAW 95-113—SEPT. 29, 1977 91 STAT. 943 be undertaken by the cooperators and the productivity of the acreage diverted. The Secretary shall limit the total acreage to be diverted under agreements in any county or local community so as not to affect adversely the economy of the county or local community. "(7) The set-aside acreage and the additional diverted acreage Consultation. may be devoted to wildlife food plots or wildlife habitat in con- formity with standards established by the Secretary in consulta- tion with wildlife agencies. The Secretary may pay an appropriate Payment. share of the cost of practices designed to carry out the purposes of the foregoing sentence. The Secretary may provide for an addi- tional payment on such acreage in an amount determined by the Secretary to be appropriate in relation to the benefit to the gen- eral public if the cooperator agrees to permit, without other compensation, access to all or such portion of the farm, as the Secretary may prescribe, by the general public, for hunting, trapping, fishing, and hiking, subject to applicable State and Federal regulations. "(8) If the operator of the farm desires to participate in the Agreement, program formulated under this subsection the operator shall file filing. an agreement to do so no later than such date as the Secretary may prescribe. Loans, purchases, and payments under this subsection shall be made available to cooperators on such farm only if such cooperators set aside and devote to approved soil conserving uses an acreage on the farm equal to the number of acres which the operator of the farm agrees to set aside and devote to approved soil conserving uses, and the agreement shall so provide. The Sec- Termination or retary may, by mutual agreement with the cooperators on the modification. farm, terminate or modify any such agreement entered into pur- suant to this subsection if the Secretary determines such action necessary because of any emergency created by drought or other disaster, or in order to alleviate a shortage in the supply of rice. "(9) The Secretary shall provide adequate safeguards to pro- Safeguards tect the interests of tenants and sharecroppers, including provi- sion for sharing, on a fair and equitable basis in payments under this subsection. "(10) In any case in which the failure of a cooperator to com- ply fully with the terms and conditions of the program formulated under this subsection precludes the making of loans, purchases, and payments, the Secretary may, nevertheless, make such loans, purchases, and payments in such amounts as the Secretary determines to be equitable in relation to the seriousness of the default. "(11) The Secretary is authorized to issue such regulations Regulations. as the Secretary determines necessary to carry out the provisions of this subsection. "(12) The Secretary shall carry out the program authorized by this subsection through the Commodity Credit Corporation. "(13) The provisions of subsection 8(g) of the Soil Conserva- tion and Domestic Allotment Act (relating to assignment of 16 u s e 590h. payments) shall apply to payments under this subsection,". SUSPENSION o r MARKETING QUOTAS AND OTHER PROVISIONS SEC. 703. Sections 353, 354, 355, 356, and 377 of the Agricultural 7 USC1353 note. Adjustment Act of 1938, as amended, shall not be applicable to the 7 usc 1353- 1978 through 1981 crops of rice. 1356, 1377.
91 STAT. 944 PUBLIC LAW 95-113—SEPT. 29, 1977 DEFINITION OF COOPERATOR SEC. 704. The last proviso in the first sentence of section 408(b) of the Agricultural Act of 1949, as added by section 303 of the Rice Ante, p. 939. Production Act of 1975, is amended by striking out "and 1977" and inserting in lieu thereof "through 1981". CONFORMING AMENDMENT 7 use 1736b. SEC. 705. Section 408 (m) of the Agricultural Act of 1949, as added by the Rice Production Act of 1975, to be effective for the 1976 and 1977 crops, shall be effective for the 1978 through 1981 crops, and shall read as follows: REFERENCES TO TERMS MADE APPLICABLE TO RICE Post, p. 956. "(m) References made in sections 402, 403, 406, 407, and 416 to the 7 use 1736. terms 'support price', 'level of support', and 'level of price support' Ante, pp. 927, shall bo considered to apply as well to the level of loans and purchases 939. for rice under this Act; and references made to the terms 'price sup- 7 use 1431. port', 'price support operation', and 'price support program' in such Post, p. 956. sections and in section 401(a) shall be considered as applying as well to the loan and purchase operations for rice under this Act.". TITLE VIII—PEANUTS A N N U A L MARKETING QUOTA AND STATE ACREAGE ALLOTMENT SEC 801. Section 358 of the Agricultural Adjustment Act of 1938; 7 use 1358. as amended, is amended as follows: 7 use 1358note. (a) Subsections (a) and (e) shall not be applicable to the 1978 through 1981 crops of peanuts. 7 use 1358. (b) Subsection (c) (1) is amended, effective for the 1978 through 1981 crops of peanuts, by striking out the period at the end of the second sentence and inserting in lieu thereof the following: " : Pro- vided, That the peanut acreage allotment for the State of New Mexico .shall not be reduced below the 1977 acreage allotment as increased pursuant to subsection (c) (2) of this section.". NATIONAL ACREAGE ALLOTMENT; NATIONAL POUNDAGE QUOTA ; FARM POUNDAGE QUOTA ; AND DEFINITIONS SEC. 802. Effective for the 1978 through 1981 crops of peanuts, sec- tion 358 of the Agricultural Adjustment Act of 1938, as amended, is • ' ' amended by adding at the end thereof new subsections (k) through (p) as follows: Announcements. "(k) The Secretary shall, not later than December 1 of each year, announce a national acreage allotment for peanuts for the following crop taking into consideration projected domestic use, exports, and a . . reasonable carryover: Provided, That such allotment shall be not less than one million six hundred and fourteen thousand acres. "(1) The Secretary shall, not later than December 1 of each year, announce a minimum national poundage quota for peanuts for the following marketing year of the following amounts: 1978, 1,680,000 tons; 1979, 1,596,000 tons; 1980, ,1,516,000-tons; and 1981, 1,440,000 tons. If the Secretary determines that the minimum national poundage quota for any marketing year is insufficient to meet total estimated
PUBLIC LAW 95-113—SEPT. 29, 1977 91 STAT. 945 requirements for domestic edible use and a reasonable carryover, the national poundage quota for the marketing year may be increased by the Secretary to the extent determined by the Secretary to be necessary to meet such requirements. "(m) For each farm for which a farm acreage allotment has been Farm yield, established, a farm yield for peanuts shall be determined. Such yield shall be equal to the average of the actual yield per acre on the farm for each of the three crop years in which yields were highest on the farm out of the five crop years 1973 through 1977: Provided^ That if peanuts were not produced on the farm in at least three years during such five-year period or there was a substantial change in the opera- tion of the farm during such period (including, but not limited to, a change in operator, lessee who is an operator, or irrigation prac- tices), the Secretary shall have a yield appraised for the farm. The appraised yield shall be that amount determined to be fair and reason- able on the basis of yields established for similar farms which are located in the area of the farm and on which peanuts were produced, taking into consideration land, labor, and equipment available for the production of peanuts, crop rotation practices, soil and water, and other relevant factors, "(n) For each farm, a farm base production poundage shall be Farm base established equal to the quantity determined by multiplying the farm production peanut acreage allotment by the farm yield determined in accordance poundage. with subsection (m) of this section. "(o) For each farm, a farm poundage quota shall be established by Farm poundage the Secretary for each marketing year equal to the farm base produc- quota. tion poundage multiplied by a factor determined by the Secretary, such that the total of all farm poundage quotas will equal the national poundage quota for such marketing year. The poundage quota so determined, beginning with the 1979 crop for any farm, shall be increased by the number of pounds by which marketings of quota pea- nuts from the farm during the immediately preceding marketing j^ear were less than the farm poundage quota: Provided^ That total market- Limitation. ings shall not exceed actual production from the farm acreage allot- ment : Provided further^ That the grower must have planted in such preceding marketing year that part of the farm allotment estimated on the basis of the farm yield to be sufficient to produce the total farm poundage quota: Provided further^ That if the total of all such Adjustment increases in individual farm poundage quotas exceeds 10 per centum of the national poundage quota for the marketing year, the Secretary shall adjust such increases so that the total of all increases does not exceed 10 per centum of the national poundage quota. "(p) For the purposes of this part and title I of the Agricultural Definitions. Act of 1949, as amended— 7 u s e 1441. "(1) 'quota peanuts' means, for any marketing year, any pea- nuts which are eligible for domestic edible use as determined by the Secretary, which are marketed or considered marketed from a farm, and which do not exceed the farm poundage quota of such farm for such year; "(2) 'additional peanuts' means, for any marketing year, any peanuts which are marketed from a farm and which are in excess of the marketings of quota peanuts from such farm for such year but not in excess of the actual production of the farm acreage allotment; "(3) 'crushing' means the processing of peanuts to extract oil for food uses and meal for feed uses, or the processing of peanuts
91 STAT. 946 PUBLIC LAW 9 5 - 1 1 3 — S E P T . 29, 1977 by crushing or otherwise when authorized by the Secretary; and " (4) 'domestic edible use' means use for milling to produce domestic food peanuts and seed and use on a farm.". SALE, LEASE, AND TRANSFER OF ACREAGE ALLOTMENT SEC. 803. Effective for the 1978 through 1981 crops of peanuts, sec- 7 use 1358a. tion 358a of the Agricultural Adjustment Act of 1938, as amended, is amended by— (1) in subsection (a) — (i) striking out ". if he determines t h a t it will not impair the eii'ective operation of the peanut marketing quota or price support program,": and (ii) striking out "'may" each place t h a t term appears and inserting ""shnU" in lieu thereof: and (2) adding at the end thereof a new subsection (i) as follows: " ( i ) Xotwithstanding any other provision of this section, transfers shall be on the basis of the farm base production poundage, and the acreage allotment for the receiving farm shall be increased by an amount determined by dividing the number of pounds transferred by the farm yield for the receiving farm, and the acreage allotment for the transferring farm shall be reduced by an amount determined by dividing the number of pounds transferred by the farm yield for th^ transferring farm.". MARKETING P E N A L T I E S ; DISPOSITION OF ADDITIONAL PEANUTS SEC. 804. Effective for the 1978 through 1981 crops of peanuts, sec- 7 u s e 1359. tion 359 of the Agricultural Adjustment Act of 1938, as amended, is amended by— (1) striking out in the first sentence of subsection (a) "75 per centum of the support price for" and inserting in lieu thereof "120 per centum of the support price for quota"; (2) inserting after the first sentence of subsection (a) a new sentence as follows: "The marketing of any additional peanuts from a farm shall be subject to the same penalty unless the pea- nuts, in accordance with regulations established hj the Secretary, are placed under loan at the additional loan rate under the loan program made available under section 108 (b) of the Agricultural Post, p. 947. Act of 1949 and not redeemed by the producers or are marketed under contracts between handlers and producers p u r s u a n t to the provisions of subsection (i) of this section."; (3) striking out "normal yield" in subsection (a) and inserting in lieu thereof "farm yield"; and (4) adding at the end thereof new subsections (f) through (j) as follows: " ( f ) Only quota peanuts may be retained for use as seed or for other uses on a farm and when so retained shall be considered as marketings of quota peanuts. Additional peanuts shall not be retained for use on a farm and shall not be marketed for domestic edible use. Seed for planting of any peanut acreage in the United States shall be obtained solely from quota peanuts marketed or considered marketed for domestic edible use. Penalty. " ( g ) Upon a finding by the Secretary that the peanuts marketed from any crop for domestic edible use by a handler are larger in quan- tity or higher in grade or quality than the peanuts that could reason- ably be produced from the quantity of peanuts having the grade,
PUBLIC LAW 95-113—SEPT. 29, 1977 91 STAT. 947 kernel content, and quality of the quota peanuts acquired by such handler from such crop for such marketing, such handler shall l3e sub- ject to a penalty equal to 120 per centum of the loan level for quota peanuts on the peanuts which the Secretary determines are in excess of the quantity, grade, or quality of the peanuts that could reasonably have been produced from the peanuts so acquired. "(h) The Secretary shall require that the handling and disposal of additional peanuts be supervised by agents of the Secretary or by area marketing associations designated pursuant to section 108(c) of the Agricultural Act of 1949. Quota and additional peanuts of like type infra. and segregation or quality may, under regulations prescribed by the Secretary, be commingled and exchanged on a dollar value basis to facilitate warehousing, handling, and marketing. "(i) Handlers may, under regulations prescribed by the Secretary, Contracts, contract with producers for the purchase of additional peanuts for crushing, export, or both. All such contracts shall be completed and submitted to the Secretary (or if designated by the Secretary, the area association) for approval prior to June 15 of the year in which the crop is produced. "(]) Subject to the provisions of sction 407 of the Agricultural Act of 1949, as amended, any peanuts owned or controlled by the Com- Ante, p. 927, modity Credit Corporation may be made available for domestic edible ^^9. use in accordance with regulations established by the Secretary. Addi- tional peanuts received under loan shall be offered for sale for domestic edible use at prices not less than those required to cover all costs incurred with respect to such peanuts for such items as inspection, warehousing, shrinkage, and other expenses, plus (1) 100 per centum of the loan value of quota peanuts if the additional peanuts are sold and paid for during the harvest season upon delivery by the producer, or (2) 105 per centum of the loan value of quota peanuts if the addi- tional peanuts are sold after delivery by the producer but not later than December 31 of the marketing year, or (3) 107 per centum of the loan value of quota peanuts if the additional peanuts are sold later than December 31 of the marketing year.". REPORTS AND RECORDS SEC. 805. Effective for the 1978 through 1981 crops of peanuts, the first sentence of section 373(a) of the Agricultural Adjustment Act of 1938, as amended, is amended by inserting immediately before "all 7 USC 1373. brokers and dealers in peanuts" the following: "all farmers engaged in the production of peanuts,". PRESERVATION OF UNUSED ALLOTMENTS SEC. 806. Effective for the 1978 through 1981 crops of peanuts, section 377 of the Agricultural Adjustment Act of 1938, as amended, 7 USC 1377. is amended by inserting after the words "farm acreage allotment for such year" the following: "or, in the case of peanuts, an acreage sufficient to produce 75 per centum of the farm poundage quota". PRICE SUPPORT PROGRAM SEC. 807. Effective for the 1978 through 1981 crops of peanuts, title I of the Agricultural Act of 1949, as amended, is amended by adding at the end thereof a new section 108 as follows:
91 STAT. 948 PUBLIC LAW 95-113—SEPT. 29, 1977 ' P E A N U T PROGRAM 7 u s e 1445c. "SEC. 108. Notwithstanding any other provision of law— "(a) The Secretary shall make price support available to producers through loans, purchases, or other operations on quota peanuts for each of the 1978 through 1981 crops at such levels as tlie Secretary finds appropriate, taking into consideration the eight factors specified 7 u s e 1421. in section 401(b) of this Act, and any change in the index of prices paid by farmers for production items, interest, taxes, and wage rates during the period beginning January 1 and ending December 31 of the calendar year immediately preceding the marketing year for which the level of support is being determined, but not less than $420 per ton. The levels of support so announced shall not be reduced by any deduc- Adjustments. tions for inspection, handling, or storage: Provided, That the Secre- tary may make adjustments for location of peanuts and such other 7 u s e 1423. adjustments as are authorized by section 403 of this Act. "(b) The Secretary shall make price support available to producers through loans, purchases, or other operations on additional peanuts for each of the 1978 through 1981 crops. In determining support levels, the Secretary shall take into consideration the demand for peanut oil and peanut meal, expected prices of other vegetable oils and protein meals, and the demand for peanuts in foreign markets. The Secretary shall announce the level of support for additional peanuts of each crop not later than February 15 preceding the marketing year for which the level of support is being determined. Warehouse "(c) (1) In carrying out subsections (a) and (b) of this section, the storage loans. Secretary may make warehouse storage loans available in each of the three producing areas (described in 7 CFR § 1446.4 (1977)) to a desig- nated area marketing association of peanut producers which is selected and approved by the Secretary and which is operated primarily for the purpose of conducting such loan activities. Such associations may be used in administrative and supervisory activities relating to price support and marketing activities under this section and section 3,59 of Ante, p. 946. the Agricultural Adjustment Act of 1938, as amended. Such loans shall include, in addition to the price support value of the peanuts, such costs as such association reasonably may incur in carrying out such responsibilities in its operations and activities under this section and section 359 of the Agricultural Adjustment Act of 1938, as amended. Pools, "(2) The Secretary may require that each such association establish establishment. pools and maintain complete and accurate records by type for ouota Record retention. peanuts handled under loans and for additional peanuts produced without a contract between handler and producer described in section Net gains. 359 (i) of the Agricultural Adjustment Act of 1938. Net gains on pea- nuts in each pool, unless otherwise approved by the Secretary, shall be distributed in proportion to the value of the peanuts placed in the pool by each grower. Net gains for peanuts in each pool shall consist of (A) for quota peanuts, the net gains over and above the loan indebtedness and other costs or losses incurred on peanuts placed in such pool plus an amount from the pool for additional peanuts to the extent of the net gains from the sale for domestic food and related uses of addi- tional peanuts in the pool for additional peanuts equal to any loss on disposition of all peanuts in the pool for quota peanuts and (B) for additional peanuts, the net gains over and above the loan indebtedness and other costs or losses incurred on peanuts placed in the pool for additional peanuts less any amount allocated to offset any loss on the
PUBLIC LAW 95-113—SEPT. 29, 1977 91 STAT. 949 pool for quota peanuts as provided in clause (A) of this paragraph. Notwithstanding any other provision of this subsection, any distribu- tion of net gains on additional peanuts of any type to any producer shall be reduced to the extent of any loss by the Commodity Credit Corporation on quota peanuts of a different type placed under loan by such grower.". TITLE IX—SOYBEANS AND SUGAR \ SOYBEAN PRICE SUPPORT • SEC. 901. Effective only with respect to the 1978 through 1981 crops of soybeans, section 201 of the Agricultural Act of 1949, as amended, Ante, p. 920. is amended by— (1) inserting in the first sentence after "tung nuts," the follow- ing : "soybeans,"; and (2) adding at the end thereof a new subsection (e) as follows: "(e) The price of the 1978 through 1981 crops of soybeans shall be supported through loans and purchases at such levels as the Secretary determines appropriate in relation to competing commodities and tak- ing into consideration domestic and foreign supply and demand fac- tors : Provided, That notwithstanding the provisions of section 1001 of the Food and Agriculture Act of 1977, the Secretary shall not require a set-aside of soybean acreage as a condition of eligibility for price sup- port for any commodity supported under the provisions of this Act.". SUGAR PRICE SUPPORT SEC. 902. Effective only with respect to the 1977 and 1978 crops of sugar beets and sugar cane, section 201 of the Agricultural Act of 1949, as amended, is amended by— (1) striking out in the first sentence "honey, and milk" and inserting in lieu thereof the following: "honey, milk, sugar beets, and sugar cane"; and (2) adding at the end thereof a new subsection (f) as follows: "(f) (1) The price of the 1977 and 1978 crops of sugar beets and sugar cane, respectively, shall be supported through loans or purchases with respect to the processed products thereof at a level not in excess of 65 per centum nor less than 52.5 per centum of the parity price there- for : Provided, That the support level may in no event be less than 13.6 cents per pound raw sugar equivalent. In carrying out the price sup- Minimum wage port program authorized by this subsection, the Secretary shall estab- rates, lish minimum wage rates for agricultural employees engaged in the establishment. production of sugar. "(2) Notwithstanding any other provision of law, the Secretary Suspension may suspend the operation of the price support program authorized by this subsection whenever the Secretary determines that an interna- tional sugar agreement is in effect which assures the maintenance in the United States of a price for sugar not less than 13.5 cents per pound raw sugar equivalent. "(3) Nothing in this subsection shall affect the authority of the Secretary to establish under any other provision of law a price sup- port program for that portion of the 1977 crop of sugar cane and sugar .; beets marketed prior to the implementation of the program authorized by this subsection.".
91 STAT. 950 PUBLIC LAW 95-113—SEPT. 29, 1977 TITLE X—MISCELLANEOUS SET-ASIDE OF NORMALLY PLANTED ACREAGE 7 use 1309. SEC. 1001. Notwithstanding- any other provision of law, whenever a set-aside is in effect for one or more of the 1978 through 1981 crops of wheat, feed grains, upland cotton, and rice, the Secretary of Agricul- ture may require, as a condition of eligibility for loans, purchases, and 7 use 1421 note, payments under the Agricultural Act of 1949, as amended, that the acreage normally planted to crops designated by the Secretary, adjusted as deemed necessary by the Secretary to be fair and equitable among producers, shall be reduced by the acreage of set-aside or diversion. AMERICAN AGRICULTURE PROTECTION PROGRAM 7 use 1310. SEC. 1002. (a) Notwithstanding any other provision of law, when- ever the President or any other member of the executive branch of the Federal Government causes to be suspended, based upon a determina- tion of short supply, the commercial export sales of any commodity, as defined in subsection (c) of this section, to any country or area with which the United States otherwise continues commercial trade, the Secretary of Agriculture shall, on the day the suspension is initiated, set the loan level for such commodity under the Agricultural Act of 1949, as amended, if a loan program is in effect for the commodity, at 90 per centum of the parity price for the commodity, as such parity price is determined on the day the suspension is initiated, (b) Any loan level established pursuant to subsection (a) of this section shall remain in effect as long as the suspension of commercial export sales described in subsection (a) remains in effect. "Commodity." (c) For purposes of this section, the term "commodity" shall include any of the following: wheat, corn, grain sorghum, soybeans, oats, rye, barley, rice, flaxseed, and cotton. BUDGET AMENDMENT Price supports. SEC. 1003. (a) Effective only with respect to the 1978 through 1981 7 use 1447. crops, section 301 of the Agricultural Act of 1949 is amended by add- ing at the end thereof a new sentence as follows: "The Secretary is authorized to make price support available under this title for the 1978 through 1981 crops of flaxseed, dry edible beans, gum naval stores, and in the case of the 1979 through 1981 crops, sugar beets and sugar cane, 7 use 1446. and for any other nonbasic commodity not designated in title I I , except that such authority shall terminate with respect to any com- modity, other than those listed in this sentence, at the end of any crop year in which the net outlays for the commodity exceed $50 million.", (b) The amendment made by this section to the Agricultural Act of 1949 shall not be operative in any manner with respect to any price support program in effect on the date of enactment of this Act. SPECIAL GRAZING AND H A Y PROGRAM SEC. 1004. Title I of the Agricultural Act of 1949, as amended, is amended by adding at the end thereof a new section 109 as follows: 7 use 1445d. "SEC. 109. Notwithstanding any other provision of law— "(a) The Secretary is authorized to administer a special wheat acre- age grazing and hay program (hereinafter in this section referred to as the 'special program') in each of the crop years 1978 through 1981.
PUBLIC LAW 95-113—SEPT. 29, 1977 91 STAT. 951 Under the special program, a producer shall be permitted to designate, Acreage, under such regulations as established by the Secretary, a portion of the designation, acreage on the farm intended to be planted to wheat, feed grains, or upland cotton for harvest, not in excess of 40 per centum thereof, or 50 acres, whichever is greater, which shall be planted to wheat (or some other commodity other than corn or grain sorghum) and used by the producer for grazing purposes or hay rather than for commercial grain production. A producer who elects to participate in the special program Payment, shall receive a payment as provided in subsection (c) of this section. "(b) Any producer who elects to participate in the special program under this section shall designate the specific acreage on the farm which is to be used for the purposes set forth in subsection (a) of this section. No crop other than hay may be harvested from acreage included in the special program. "(c) The Secretary shall pay the producer participating in the spe- cial program an amount determined by multiplying the farm program payment yield for w^ieat established for the farm, by the number of acres included in the special program, by a rate of payment determined by the Secretary to be fair and reasonable. The producer shall not be eligible for any other payment or price support on any portion of the acreage for the farm which the producer elects to include in the special program. "(d) Acreage included in the special program shall be in addition to any acreage included in any acreage set-aside program otherwise pro- vided for by law. "(e) The Secretary is authorized to issue such regulations as the Regulations. Secretary determines necessary to carry out the provisions of this section. "(f) The Secretary shall carry out the special program through the Commodity Credit Corporation.". DAILY RELEASE OF REPORTS OF EXPORT SALES OF AGRICULTURAL COMMODITIES SEC. 1005. Section 812 of the Agricultural Act of 1970 is amended 7 use 612C-3. by inserting immediately after the third sentence thereof a new sen- tence as follows: "When the Secretary requires that such information be reported by exporters on a daily basis, the information compiled from individual reports shall be made available to the public daily.". FILBERTS SEC. 1006. Section 8e of the Agricultural Adjustment Act, as reenacted and amended by the Agricultural Marketing Agreement Act of 1937, is amended by inserting after "oranges, onions, walnuts, 7 USC 608e-l. dates," the following: "filberts,". TITLE XI—GRAIN RESERVES P R O D U C E R S T O R A G E P R O G R A M F O R W H E A T AND FEED GRAINS SEC. 1101. Title I of the Agricultural Act of 1949, as amended, is amended by adding at the end thereof a new section 110 as follows: " P R O D U C E R S T O R A G E PROGRAM FOR WHEAT AND FEED GRAINS "SEC. 110. (a) The Secretary shall formulate and administer a pro- gram under which producers of wheat and, in the discretion of the 7 USC 1445e. Secretary, producers of feed grains will be able to store wheat and
91 STAT. 952 PUBLIC LAW 9 5 - 1 1 3 — S E P T . 29, 1977 feed grains when such commodities are in abundant supply and extend Safeguards. the time period for their orderly marketing. The Secretary shall estab- lish safeguards to assure that wheat and feed grains held under the program shall not be utilized in any manner to unduly depress, manip- ulate, or curtail the free market. The authority provided by this sec- tion shall be in addition to other authorities available to the Secretary for carrying out producer loan and storage operations. Terms and " ( b ) I n carrying out the producer storage program, the Secretary conditions. may provide original or extended price support loans for wheat and feed grains at the same level of support as provided by this Act under terms and conditions designed to encourage producers to store wheat and feed grains for extended periods of time in order to promote orderly marketing when wheat or feed grains are in abundant supply. Among such other terms and conditions as the Secretary may prescribe by regulation, the program shall provide for (1) repayment of such loans in not less than three years nor more than five years; (2) pay- ment to producers of such amounts as the Secretary determines appro- priate to cover the cost of storing wheat and feed grains held under the p r o g r a m ; (3) a rate of interest determined by the Secretary based upon the rate of interest charged the Commodity Credit Corporation Waiver. by the United States Treasury, except that the Secretary may waive or adjust such interest; (4) recovery of amounts paid for storage, and for the payment of additional interest or other charges in the event such loans are repaid by producers before the market price for wheat or feed grains has reached the price levels specified in clause (5) of this subsection; (5) conditions designed to induce producers to redeem and market the wheat or feed grains securing such loans without regard to the maturity dates thereof whenever the Secretary deter- mines that the market price of wheat has attained a specified level which is not less than 140 per centum nor more than 160 per centum of the then current level of price support for wheat or such appro- priate level for feed srrains, as determined by the Secretary; and (6) conditions prescribed by the Secretary under which the Secretary may require producers to repay such loans, plus accrued interest thereon, refund amounts paid for storage, and pay such additional interest and other charges as may be required by regulation, whenever the Secre- tary determines t h a t the market price for the commodity is not less than 175 per centum of the then current level of price support for wheat or such appropriate level for feed grains as determined by the Secretary under this Act. Announcement. " ( c ) The Secretary shall announce the terms and conditions of the producer storage program as far in advance of making loans as prac- ticable. I n puch announcement, the Secretary shall specify the quantity of wheat or feed grains to be stored under the program which the Sec- retary determines anpropriate to promote the orderly marketing of such commodities. The quantity of wheat shall not be less than three hundred million bushels nor more than seven hundred million bushels: Provided^ T h a t such maximum amount may be adjusted by the Secre- t a r y as necessary to meet such commitments as may be assumed by the United States pursuant to an international agreement containing pro- visions relating to grain reserves. Restriction. " ( d ) Notwithstanding any other provision of law, whenever the extended loan program authorized by this section is in effect, the Com- modity Credit Corporation may not sell any of its stocks of wheat or feed grains at less than 150 per centum of the then current level of price support for such commodity: Provided, T h a t such restriction shall not apply to—
PUBLIC LAW 95-113—SEPT. 29, 1977 91 STAT. 953 "(1) sales of such commodities which have substantially deteri- orated in quality or as to which there is a danger of loss or waste through deterioration or spoilage; and "(2) sales or other disposals of such commodities under (A) the fifth and sixth sentences of section 407 of this Act; (B) the Act 7 u s e 1427. of September 21, 1959 (73 Stat. 574, as amended; 7 U.S.C. 1427 Ante, p. 927. note), and (C) section 813 of the Agricultural Act of 1970. Infra. "(e) The Secretary may, with the concurrence of the owner of grain Grain stored under the program authorized by this section, reconcentrate all reconcentration. such grain stored in commercial warehouses at such points as the Sec- retary deems to be in the public interest, taking into account such fac- tors as transportation and normal marketing patterns. The Secretary shall permit rotation of stocks and facilitate maintenance of quality under regulations which assure that the holding producer or ware- houseman shall, at all times, have available for delivery at the desig- nated place of storage both the quantity and quality of grain covered by his commitment. "(f) Whenever grain is stored under the provisions of this section, Purchases the Secretary may buy and sell at an equivalent price, allowing for the customary location and grade differentials, substantially equivalent quantities of grain in different locations or warehouses to the extent needed to properly handle, rotate, distribute, and locate such commodi- ties which the Commodity Credit Corporation owns or controls. Such purchases to offset sales shall be made within two market days follow- ing the sales. The Secretary shall make a daily list available showing Daily list, the price, location, and quantity of the transactions. "(g) The Secretary shall use the Commodity Credit Corporation, to the extent feasible, to fulfill the purposes of this section. In addi- tion, to the maximum extent practicable consistent with the fulfillment of the purposes of this section and the effective and efficient administra- tion of this section, the Secretary shall utilize the usual and customary channels, facilities, and arrangements of trade and commerce.". INTERNATIONAL EMERGENCY FOOD RESERVE SEC. 1102. Title I of the Agricultural Act of 1949, as amended, is amended by adding at the end thereof a new section 111 as follows: ((I N T E R N A T I O N A L E M E R G E N C Y FOOD RESERVE "SEC. 111. The President is encouraged to enter into negotiations Negotiations. with other nations to develop an international system of food reserves Reserve system, to provide for humanitarian food relief needs and to establish and establishment. maintain a food reserve, as a contribution of the United States toward 7 u s e 1445f. the development of such a system, to be made available in the event of food emergencies in foreign countries. The reserves shall be known as the International Emergency Food Reserve.". DISASTER RESERVE SEC. 1103. Section 813 of the Agricultural Act of 1970, as added by the Agriculture and Consumer Protection Act of 1973, is amended 7 u s e 1427a. as follows: (a) Subsection (b) is amended to read as follows: eommodity "(b) The Secretary shall acquire such commodities through the price acquisition. support program. However, if the Secretary determines that no wheat, feed grains, or soybeans are available through the price support pro-
91 STAT. 954 PUBLIC LAW 9 5 - 1 1 3 — S E P T . 29, 1977 gram at locations where they may be economically utilized to alleviate distress caused by a natural disaster, the Secretary is authorized to purchase through the facilities of the Commodity Credit Corporation such wheat, feed grains, soybeans, hay, or other livestock forages as the Secretary deems necessary for disposition in accordance with the authority provided in subsection (d) of this section. T h e Secretary may acquire wheat, feed grains, soybeans, hay, or other livestock forages at such locations, at such times, and in such quantities as the Secretary finds necessary and appropriate and may pay such transpor- tation and other costs as may be required to permit disposition of such wheat, feed grains, soybeans, hay, and other livestock forages under subsection (d) of this section.". Commodity (b) Subsection (d) is amended to read as follows: disposition. " ( d ) The Secretary is also authorized to dispose of such commodities only for (1) use in relieving distress (A) in any State, the District of Columbia, Puerto Rico, Guam, or the Virgin Islands of the United States, ( B ) in connection with any major disaster or emergency determined by the President to w a r r a n t assistance by the Federal Government under the Disaster Relief Act of 1974 (88 Stat. 143, as amended; 42 U.S.C. 5121), and (C) in connection with any emer- gency determined by the Secretary to w a r r a n t assistance under section 407 of the Agricultural Act of 1949 (63 Stat. 1055, as amended; 7 Ante, pp. 927, U.S.C. 1427), the Act of September 21,1959 (73 Stat. 574, as amended; 939. 7 U.S.C. 1427 note), or section 1105 of the Food and Agriculture Act of 1977; or (2) use in connection with a state of civil defense emer- gency as proclaimed by the President or by concurrent resolution of the Congress in accordance with the provisions of the Federal Civil Defense Act of 1950, as amended (50 U.S.C. A p p . 2251-2297).". FARM STORAGE FACILITY LOANS Limitations. SEC. 1104. Effective only with respect to the fiscal years beginning October 1, 1977, and ending September 30, 1981, section 4 ( h ) of the Commodity Credit Corporation Charter Act (62 Stat. 1070, as amended; 15 TLS.C. 7 l 4 b ( h ) ) is amended by inserting immediately before the period at the end of the second sentence the following: " : And provided further, T h a t to encourage the storage of dry or high moisture grain, soybeans, and rice, and high moisture forage and silage on farms, where the commodities can be stored at the lowest cost, the Corporation shall—during the period beginning October 1, 1977, and ending September 30, 1981—make secured storage facility loans not to exceed $50,000 to growers of such commodities in amounts not less than 75 per centum of the total construction cost of such facil- ity, including but not limited to the cost of structural and equipment foundations, electrical systems, grain handling systems, d r y i n g equip- ment, and site preparation, or, in the discretion of the Corporation, such loans may be made in such amounts not to exceed $50,000 to cover remodeling costs of existing storage facilities, as are set forth in regu- lations issued by the Secretary; the size of such facility for which a loan is obtained shall be based upon the amount of space required to store the quantity of the commodity estimated to be produced by the borrower during a two-year period; such loans shall be for a period not to exceed ten years at an interest rate based upon the rate of inter- est charged the Corporation by t h e United States T r e a s u r y ; and the loans shall be deducted from the proceeds of price support loans or purchase agreements made between the Corporation and the growers".
PUBLIC LAW 95-113—SEPT. 29, 1977 91 STAT. 955 EMERGENCY FEED PROGRAM SEC. 1105. (a) Notwithstanding any other provision of law, the 7 USC 2267. Secretary of Agriculture may implement an emergency feed program for assistance in the preservation and maintenance of livestock in any area of the United States, including Puerto Rico, Guam, and the Vir- gin Islands of the United States, where, because of flood, drought, fire, hurricane, earthquake, storm, or other natural disaster, the Sec- retary determines that an emergency exists. (b) The Secretary shall not provide assistance under this section to Conditions, any person unless all of the following conditions created by the emer- gency are present: (1) The person has suffered a substantial loss in the livestock feed normally produced on the farm for such person's livestock; (2) The person does not have sufficient feed for such person's livestock for the estimated period of the emergency; and (3) The person is required to make feed purchases during the period of the emergency in quantities larger than such person would normally make. (c) Persons eligible for assistance under the program formulated under this section may be reimbursed for not to exceed 50 per centum of the cost of the feed purchased by such eligible persons during the period of emergency, as announced by the Secretary of Agriculture, or at such lower rate as may be established by the Secretary. (d) Any person who disposes of any feed for which such person is Penalty, reimbursed under this section, in any manner other than as authorized by the Secretary, shall be subject to a penalty equal to the market value of the feed involved, to be recovered by the Secretary in a civil suit brought for that purpose. In addition, such person shall be sub- ject to a fine of not more than $10,000, or imprisonment for not more than one year, or both. (e) The Secretary is authorized to issue such regulations as the Sec- Regulations, retary determines necessary to carry out the provisions of this section. (f) The Secretary shall carry out the program authorized by this section through the Commodity Credit Corporation. (g) Notwithstanding any other provision of law, the Secretary shall not delegate the authority to administer the emergency feed program to any other department, agency, or entity, public or private. T I T L E XII—PUBLIC LAW 480 AUTHORITY FOR T H E COMMODITY CREDIT CORPORATION TO ACT AS PURCHASING OR S H I P P I N G AGENT UNDER TITLE I SEC. 1201. Section 102 of the Agricultural Trade Development and Assistance Act of 1954, as amended, is amended by inserting immedi- 7 USC 1702. ately before the period at the end thereof the following: "and, when requested by the purchaser of such commodities, may serve as the pur- chasing or shipping agent, or both, in arranging the purchasing or shipping of such commodities". TITLE I SALES PROCEDURES SEC. 1202. Title I of the Agricultural Trade Development and Assistance Act of 1954, as amended, is amended by adding at the end thereof a new section 115 as follows:
91 STAT. 956 PUBLIC LAW 95-113—SEPT. 29, 1977 Bids. " S E C . 115. (a) No purchases of food commodities shall be financed 7 u s e 1715. under this title unless they are made on the basis of an invitation for bid publicly advertised in the United States and on the basis of bid offerinp:s which shall conform to such invitation and shall be received and publicly opened in the United States. All awards in the purchase of commodities financed under this title shall be consistent with open, competitive, a n d responsive bid procedures, as determined by the Sec- retary of Agricultvire. Commissions, fees, or other payments to any selling agent shall—unless waived by the Secretary—be prohibited in any purchase of food commodities financed under this title. Payment, reports " ( b ) Notwithstanding any other provision of law, any commission, to Secretary. fee, or other compensation of any kind paid or to be paid by any sup- plier of a commodity or ocean transportation financed by the Com- modity Credit Corporation under this title, to any agents, brokers, or other representatives of the importer or importing country, including a corporation owned or controlled by the importer or the government of the importing country, shall be reported to the Secretary of Agri- culture by the supplier of the commodity or ocean transportation. T h e report shall identify the person or entity to whom the payment is made and the transaction in connection wath which the payment is made. Information, The Secretary shall maintain such information for public inspection, availability to publish a report theieof annually, a n d forward a copy of t h e report to public. the Committee on Agriculture and the Committee on International Publication. Relations of the House of Representatives and the Committee on Agri- Transmittal to culture, Nutrition, and Forestry of the Senate. A n y supplier of a com- congressional committees. modity or ocean transportation w^ho fails to file such a report or who Penalty. files a false report shall be ineligible to furnish—directly or indi- rectly—commodities or ocean transportation financed under this title for a period of five years.". INCREASKD APPROPRIATION L I M I T FOR TITLE I I SEC. 1203. Section 204 of the Agricultural Trade Development and 7 use 1724. Assistance Act of 1954, as amended, is amended by striking out "$600,000,000" in the first sentence and inserting in lieu thereof "$750,000,000". ^,, AVAILABILITY OF COMMODITIES SEC. 1204. Section 401(a) of the Agricultural Trade Development 7 use 1731. and Assistance Act of 1954, as amended, is amended by striking out the period at the end of the last sentence and inserting in lieu thereof a comma and the following: "unless the Secretary of Agriculture determines that some part of the supply thereof should be used to carry out urgent humanitarian purposes of this Act.". < F I N A N C I N G T H E SALE OF FOOD AND FIBER COMMODITIES SEC. 1205. Section 402 of the Agricultural Trade Development and 7 use 1732. Assistance Act of 1954, as amended, is amended by adding at the end thereof a new sentence as follows: "In the allocation of funds made available under title I of this Act, priority shall be given to financing the sale of food and fiber commodities.". VALUATION OF COMMODITIES ACQUIRED THROUGH PRICE SUPPORT PROGRAMS SEC. 1206. Section 403 of the Agricultural Trade Development and 7 use 1733. Assistance Act of 1954, as amended, is amended by— (1) inserting " ( a ) " immediately after the section designation; and
PUBLIC LAW 95-113—SEPT. 29, 1977 91 STAT. 957 (2) adding at the end thereof a new subsection (b) as follows: "(b) Notwithstanding any other provision of law, in determin- ing the reimbursement due the Commodity Credit Corporation for all costs incurred under this Act, commodities from the Commodity Credit Corporation inventory, which were acquired under a domestic price support program, shall be valued at the export market price therefor, as determined by the Secretary of Agriculture, as of the time the commodity is made available under this Act.". REVISED REGULxVTIONS GOVERNING OPERATIONS; BAGGED COMMODITIES SEC. 1207. Section 408 of the Agricultural Trade Development and Assistance Act of 1954, as amended, is amended by adding at the end 7 u s e 1736b. thereof new subsections (d) and (e) as follows: "(d)(1) Not later than six months following the date of enact- ment of this subsection, and at each two-year interval thereafter, the Secretary of Agriculture shall issue revised regulations governing all operations under title I of this Act, including operations relating to purchasing countries, suppliers of commodities or ships, and pur- chasing or shipping agents. The regulations shall include, but not be limited to, prohibitions against conflicts of interest, as determined by the Secretary, between (A) recipient countries (or other purchasing entities) and their agents, (B) suppliers of commodities, (C) sup- pliers of ships, and (D) other shipping interests. "(2) The regulations shall be designed to encourage an increase in the number of exporters participating in the program. "(3) All revised regulations governing operations under title I and Transmittal to title I I I of this Act shall be transmitted to Congress by the Secretary Congress. as soon as practicable after their issuance. 7 u s e 1701, 1427. "(e) Bagged commodities for the purpose of financing by the Com- modity Credit Corporation under this Act may, subject to regulations issued by the Secretary of Agriculture, be considered 'exported' upon delivery at port, and upon presentation of a dock receipt in lieu of an on-board bill of lading.". EXTENSION OF T H E PROGRAM SEC. 1208. Section 409 of the Agricultural Trade Development and Assistance Act of 1954, as amended, is amended by striking out "1977." 7 u s e 1736c. and inserting in lieu thereof the following: "1981. New spending authority provided for title I of this Act by the amendment to this sec- tion made by the Food and Agriculture Act of 1977 shall be effective for any fiscal year only to such extent or in such amounts as are pro- vided in appropriation Acts.". USE o r NONPRICE-SUPPORTED COMMODITIES UNDER PUBLIC LAW 4 8 0 SEC. 1209. I t is the sense of Congress that there be no discrimination 7 USe 1691 note, between "price-supported" and "nonprice-supported" commodities in the programing of commodities under the Agricultural Trade Devel- opment and Assistance Act of 1954, as amended (Public Law 480). 7 u s e 1691 et seq. SPECIAL TASK FORCE ON T H E OPERATION OF PUBLIC LAW 4 8 0 SEC. 1210. (a) It is the sense of Congress that attention be given 7 USe 1691 note. to handling, storage, transportation, and administrative procedures in order to make improvements in the operation of the Agricultural
9 1 STAT. 958 PUBLIC LAW 9 5 - 1 1 3 — S E P T . 29, 1977 T r a d e Development and Assistance Act of 1954, as amended (Public 7 u s e 1691 et Law 480). Toward this objective, the Secretary of Agriculture shall seq. appoint a special task force to review and report upon the administra- Appointment. tion of the Act. Review and report. (b) Such review shall include, but not be limited to, organizational arrangements for the administration of Public L a w 480, or parts thereof, title I allocation criteria and procedures, quality control, including handling and storage through the first stage of distribution in the recipient country, and regulation of businesses and organizations to which services are contracted under Public Law 480. Report to (c) Not later than eighteen months following enactment of this Act, Congress. the Secretary of Agriculture shall transmit to Congress the report of Legislative recommenda- such task force, along with administrative actions the Secretary has tions. taken or intends to take as a result of such report, and recommenda- tions, if any, for legislative changes. TITLE XIII—FOOD STAMP AND COMMODITY DISTRIBUTION PROGRAMS FOOD STAMP ACT OF 19 64 AMENDMENTS Effective date. SEC. 1301. Effective October 1, 1977, the Food S t a m p Act of 1964, 7 u s e 2011 note. as amended, is amended to read as follows: SHORT TITLE Food Stamp Act "SECTION 1. This Act may be cited as the 'Food S t a m p Act of 1977'. of 1977. 7 u s e 2011 note. "DECLARATION OF POLICY • 7 u s e 2011. " S E C . 2. I t is hereby declared to be the policy of Congress, in order to promote the general welfare, to safeguard the health and well-being of the Nation's population by raising levels of nutrition among low- income households. Congress hereby finds t h a t the limited food pur- chasing power of low-income households contributes to hunger and malnutrition among members of such households. Congress further finds t h a t increased utilization of food in establishing and, maintaining adequate national levels of nutrition will promote the distribution in a beneficial manner of the Nation's agricultural abundance and will strengthen the Nation's agricultural economy, as well as result in more orderly marketing and distribution of foods. To alleviate such hunger and malnutrition, a food stamp program is herein authorized which will permit low-income households to obtain a more nutritious diet through normal channels of t r a d e by increasing food purchasing power for all eligible households who apply for participation. "DEFINITIONS 7 u s e 2012. " S E C . 3. As used in this Act, the t e r m : " ( a ) 'Allotment' means the total value of coupons a household is authorized to receive during each month, " ( b ) 'Authorization card' means the document issued by the State agency to an eligible household which shows the allotment the house- hold is entitled to be issued. " ( c ) 'Certification period' means the period for which households shall be eligible to receive authorization cards. I n the case of a house- hold all of whose members are included in a federally aided public
PUBLIC LAW 9 5 - 1 1 3 — S E P T . 29, 1977 91 STAT. 959 assistance or general assistance grant, the period shall coincide with the period of such grant. I n the case of all other households the period shall be not less than three m o n t h s : Provided, T h a t such period may be u p to twelve months for any household consisting entirely of unem- ployable or elderly or primarily self-employed persons, or as short as circumstances require for those households as to which there is a sub- stantial likelihood of frequent changes in income or household status, and for any household on initial certification, as determined by the Secretary. " ( d ) 'Coupon' means any coupon, stamp, or type of certificate issued pursuant to the provisions of this Act. " ( e ) 'Coupon issuer' means any office of the State agency or any person, partnership, corporation, organization, political subdivision, or other entity with which a State agency has contracted for, or to which it has delegated functional responsibility in connection with, the issuance of coupons to households. " ( f ) ' D r u g addiction or alcoholic treatment and rehabilitation pro- g r a m ' means any such p r o g r a m conducted by a private nonprofit organization or institution wliich is certified bv the State agency or agencies designated by the Governor as responsible for the admin- istration of the State's programs for alcoholics and d r u g addicts pur- suant to Public L a w 91-616 (Comprehensive Alcohol Abuse and 42 USC 4551 Alcoholism Prevention, Treatment, and Kehabilitation Act of 1970) "^te. and Public L a w 92-255 ( D r u g Abuse Office and Treatment Act of 21 USC 1101 1972) as providing treatment that can lead to the rehabilitation of "'^t^- d r u g addicts or alcoholics. " ( g ) 'Food' means (1) any food or food product for home consump- tion except alcoholic beverages, tobacco, and hot foods or hot food products ready for immediate consumption other than those authorized pursuant to clauses ( 3 ) , ( 4 ) , and (5) of this subsection, (2) seeds and plants for use in gardens to produce food for the personal consump- tion of the eligible household, (3) in the case of those persons who are sixty years of age or over or who receive supplemental security income Isenefits under title X V I of the Social Security Act, and their 42 USC 1381. spouses, meals prepared by and served in senior citizens' centers, apartment buildings occupied primarily by such persons, public or private nonprofit establishments (eating or otherwise) t h a t feed such persons, private establishments t h a t contract with the appropriate agency of the State to offer meals for such persons at concessional prices, and meals prepared for and served to residents of federally subsidized housing for the elderly, (4) in the case of persons sixty years of age or over and persons who are physically or mentally' handi- capped or otherwise so disabled t h a t they are unable adequately to prepare all of their meals, meals prepared for and delivered to them (and their spouses) at their home by a public or private nonprofit organization or by a private establishment that contracts with the appropriate State agency to perform such services at concessional prices, (5) in the case of narcotics addicts or alcoholics served by d r u g addiction or alcoholic treatment and rehabilitation programs, meals prepared and served under such programs, and (6) in the case of cer- tain eligible households living in A laska. equipment for procuring food by h u n t i n g and fishing, such as nets, hooks, rods, harpoons, and knives (iaut not equipment for purposes of transportation, clothing, or shelter, and not firearms, ammunition, and explosives) if the Secretary deter- mines t h a t such households are located in an area of the State where it is extremely difficult to reach stores selling food and t h a t such house- holds depend to a substantial extent upon h u n t i n g and fishing for subsistence. 29-194 0
91 STAT. 960 PUBLIC LAW 95-113—SEPT. 29, 1977 "(h) 'Food stamp program' means the program operated pursuant to the provisions of this Act. "(i) 'Household' means (1) an individual who lives alone or who, while living with others, customarily purchases food and prepares meals for home consumption separate and apart from the others, or else pays compensation to the others for such meals, or (2) a group of individuals who live together and customarily purchase food and prepare meals together for home consumption or else live with others and pay compensation to the others for such meals. In neither event shall any individual or group of individuals constitute a household if they reside in an institution or boarding house. For the purposes of this subsection, residents of federally subsidized housing for the elderly and narcotics addicts or alcoholics who live under the supervision of a private nonprofit institution for the purpose of regular participa- tion in a drug or alcoholic treatment program shall not be considered residents of institutions. "(j) 'Reservation' means the geographically defined area or areas over which a tribal organization (as that term is defined in section 3(p) of this Act) exercises governmental jurisdiction. "(k) 'Retail food store' means (1) an establishment or recognized , ^ department thereof or house-to-house trade route, over 50 per centum '' of whose food sales volume consists of staple food items for home prep- aration and consumption, such as meat, poultry, fish, bread, cereals, ' ' vegetables, fruits, dairy products, and the like, but not including acces- sory food items, such as coffee, tea, cocoa, carbonated and uncarbonated drinks, candy, condiments, and spices, (2) an establishment, organiza- tion or program referred to in subsections (g) (3), (4), and (5) of this section, (3) a store purveying the hunting and fishing equipment described in subsection (g) (6) of this section, and (4) any private nonprofit cooperative food purchasing venture, including those in which the members pay for food purchased prior to the receipt of such food. ^ "(1) 'Secretary'means the Secretary of Agriculture. " (m) 'State' means the fifty States, the District of Columbia, Guam, Puerto Rico, the Virgin Islands of the United States, and the reserva- tions of an Indian tribe whose tribal organization meets the require- ments of this Act for participation as a State agency. "(n) 'State agency' means (1) the agency of State government, including the local offices thereof, which has the responsibility for the administration of the federally aided public assistance programs within such State, and in those States where such assistance programs are operated on a decentralized basis, the term shall include the coun- terpart local agencies administering such programs, and (2) the tribal organization of an Indian tribe determined by the Secretary to be capable of effectively administering a food distribution program under section 4(b) of this Act or a food stamp program under section 11 (d) of this Act. " (o) 'Thrifty food plan' means the diet required to feed a family of four persons consisting of a man and a woman twenty through fifty- four, a child six through eight, and a child nine through eleven years of age, determined in accordance with the Secretary's calculations. The cost of such diet shall be the basis for uniform allotments for all house- holds regardless of their actual composition, except that the Secretary shall (1) make household-size adjustments taking into account econ- omies of scale, (2) make cost adjustments in the thrifty food plan for Alaska and Hawaii to reflect the cost of food in those States, (3) make cost adjustments in the separate thrifty food plans for Guam, Puerto
PUBLIC LAW 95-113—SEPT. 29, 1977 91 STAT. 961 Rico, and the Virgin Islands of the United States to reflect the cost of food in those States, but not to exceed the cost of food in the fifty States and the District of Columbia, and (4) adjust the cost of such diet every January 1 and July 1 to the nearest dollar increment to reflect changes in the cost of the thrifty food plan for the six months ending the preceding September 30 and March 31, respectively. "(p) 'Tribal organization' means the recognized governing body of an Indian tribe (including the tribally recognized intertribal organiza- tion of such tribes), as the term 'Indian tribe' is defined in the Indian Self-Determination Act (25 U.S.C. 450b(b)). as well as any Indian 25 use 450f tribe, band, or community holding a treaty with a State government. note. "ESTABLISHMENT OF T H E FOOD STAMP PROGRAM "SEC. 4. (a) Subject to the availability of funds appropriated under Administration. section 18 of this Act, the Secretary is authorized to formulate and 7 use 2013. administer a food stamp program under which, at the request of the State agency, eligible households within the State shall be provided an opportunity to obtain a more nutritious diet through the issuance to them of an allotment. The coupons so received by such households eoupons. shall be used only to purchase food from retail food stores which have been approved for participation in the food stamp program. Coupons issued and used as provided in this Act shall be redeemable at face value by the Secretary through the facilities of the Treasury of the United States. " (b) In jurisdictions where the food stamp program is in operation, Distribution of there shall be no distribution of federally donated foods to households food. under the authority of any law, except that distribution may be made (1) on a temporary basis under programs authorized by law to meet disaster relief needs, or (2) for the purpose of the commodity supple- mental food program. Distribution of commodities, with or without Request by tribal the food stamp program, shall also be made whenever a request for organization. concurrent or separate food program operations, respectively, is made by a tribal organization. In the event of distribution on all or part of an Indian reservation, the appropriate agency of the State govern- ment in the area involved shall be responsible for such distribution, except that, if the Secretary determines that the tribal organization is capable of effectively and efficiently administering such distribution, then such tribal organizations shall administer such distribution: Pro- vided^ That the Secretary shall not approve any plan for such distri- bution which permits any household on any Indian reservation to participate simultaneously in the food stamp program and the dis- tribution of federally donated foods. The Secretary is authorized to Administrative pay such amounts for administrative costs of such distribution on costs. Indian reservations as the Secretary finds necessary for effective administration of such distribution by a State agency or tribal organization. "(c) The Secretary shall issue such regulations consistent with this Regulations. Act as the Secretary deems necessary or appropriate for the effective and efficient administration of the food stamp program and shall pro- mulgate all such regulations in accordance with the procedures set forth in section 553 of title 5 of the United States Code. In addition, Statement, prior to issuing any regulation, the Secretary shall provide the Com- transmittal to mittee on Agriculture of the House of Representatives and the Com- congressional mittee on Agriculture, Nutrition, and Forestry of the Senate a copy of committees. the regulation with a detailed statement justifying it.
91 STAT. 962 PUBLIC LAW 95-113—SEPT. 29, 1977 "ELIGIBLE HOUSEHOLDS 7 use 2014. "SEC. 5. (a) Participation in the food stamp program shall be limited to those households whose incomes and other financial resources, held singly or in joint ownership, are determined to be a substantial limiting factor in permitting them to obtain a more nutritious diet. Assistance under this program shall be furnished to all eligible households who make application for such participation. Standards. "(b) The Secretary shall establish uniform national standards of eligibility (other than the income standards for Alaska, Hawaii, Guam, Puerto Rico, and the Virgin Islands of the United States established in accordance with subsections (c) and (e) of this section) for participa- tion by households in the food stamp program in accordance with the State plans. provisions of this section. No plan of operation submitted by a State agency shall be approved unless the standards of eligibility meet those established by the Secretary, and no State agency shall impose any other standards of eligibility as a condition for participating in the program. Income "(c) The income standards of eligibility shall be the nonfarm income standards, poverty guidelines prescribed by the Office of Management and Budget guidelines. adjusted annually pursuant to section 625 of the Economic Opportu- nity Act of 1964, as amended (42 U.S.C. 2971d), for the forty-eight States and the District of Columbia, Alaska, Hawaii, Puerto Rico, the Virgin Islands of the United States, and Guam, respectively: Provided, That in no event shall the standards of eligibility for Puerto Rico, the Virgin Islands of the United States, or Guam exceed those in the forty- eight contiguous States: Provided further, That the income poverty guidelines for the period commencing July 1,1978, shall be made as up to date as possible by multiplying the income poverty guidelines for 1977 by the change between the average 1977 Consumer Price Index and the Consumer Price Index for March 1978, utilizing the most cur- rent procedures which have been used by the Office of Management and Budget, and the income poverty guidelines for future periods shall be similarly adjusted. "(d) Household income for purposes of the food stamp program shall include all income from whatever source excluding only (1) any gain or benefit which is not in the form of money payable directly to a household, (2) any income in the certification period which is received too infrequently or irregularly to be reasonably anticipated, but not in excess of $30 in a quarter, (3) all educational loans on which payment is deferred, grants, scholarships, fellowships, veterans' educational benefits, and the like to the extent that they are used for tuition and mandatory school fees at an institution of higher education or school for the handicapped, (4) all loans other than educational loans on which repayment is deferred, (5) reimbursements which do not exceed expenses actually incurred and which do not represent a gain or benefit to the household, (6) moneys received and used for the care and mainte- nance of a third-party beneficiary who is not a household member, (7) income earned by a child who is a member of the household, who is a student, and who has not attained his eighteenth birthday, (8) moneys received in the form of nonrecurring lump-sum payments, including, but not limited to, income tax refunds, rebates, or credits, retroactive lump-sum social security or railroad retirement pension payments and retroactive lump-sum insurance settlements: Provided, That such pay- ments shall be counted as resources, unless specifically excluded by other laws, (9) the cost of producing self-employed income, and (10) anv income that any other law specifically excludes from consideration as income for the purpose of determining eligibility for the food stamp program.
PUBLIC LAW 95-113—SEPT. 29, 1977 91 STAT. 963 "(e) In computing household income, the Secretary shall allow a Standard standard deduction of $60 a month for each household, except that deduction, households in Alaska, Hawaii, Guam, Puerto Rico, and the Virgin allowance. Islands of the United States shall be allowed a standard deduction determined by the Secretary in accordance with the best available information on the relationship of actual or potential itemized deduc- tions claimed under the food stamp program in those areas to such deductions in the forty-eight contiguous States and the District of Columbia. Such standard deductions, starting July 1, 1978, shall be Adjustment adjusted every July 1 and January 1 to the nearest $5 to reflect changes in the Consumer Price Index of the Bureau of Labor Statistics for items other than food for the six months ending the preceding March 31 and September 30, respectively. All households with earned income Additional shall be allowed an additional deduction of 20 per centum of all earned deductions. income (other than that excluded by subsection (d) of this section), to compensate for taxes, other mandatory deductions from salary, and work expenses. Households shall also be entitled to (1) a dependent care deduction, the maximum allowable level of which shall be the same as that for the excess sheltei expense deduction contained in clause (2) of this subsection, for the actual cost of payments necessary for - the care of a dependent, regardless of the dependent's age, when such care enables a household member to accept or continue employment, or training or education which is preparatory for employment, or (2) an excess shelter expense deduction to the extent that the monthly amount expended by a household for shelter exceeds an amount equal to 50 per centum of monthly household income after all other applica- ble deductions have been allowed: Provided^ That the amount of such Limitation excess shelter expense deduction shall not exceed $75 a month in the forty-eight contiguous States and the District of Columbia, and shall not exceed, in Alaska, Hawaii, Guam, Puerto Rico, and the Virgin Islands of the United States, amounts determined by the Secretary in accordance with the best available information on the relationship of the actual shelter costs in those areas to such costs in the foity-eight contiguous States and the District of Columbia, adjusted annually (commencing July 1, 1978) to the nearest $5 increment to reflect changes in the shelter, fuel, and utilities components of housing costs in the Consumer Price Index published by the Bureau of Labor Statistics of the Department of Labor for the twelve-month period ending the preceding March 31, or (3) a deduction combining the dependent care and excess shelter expense deductions under clauses (1) and (2) of this subsection, the maximum allowable level of which shall not exceed the maximum allowable deduction under clause (2) of this subsection. "(f) Household income shall be calculated by the State agency for Calculation by the purpose of determining household eligibility. The State agency State agency. in calculating household income shall take into account the income reasonably anticipated to be received by the household in the certi- fication period for which eligibility is being determined and the income which has been received by the household during the thirty days preceding the filing of its application for food stamps so that the State agency may reasonably ascertain the income that is and will be actually available to the household for the certification period, except that for (1) those households which by contract for other than an hourly or piecework basis, or by self-employment, derive their annual income in a period of time shorter than one year, income shall be cal- culated by being averaged over a twelve-month period and (2) those
91 STAT. 964 PUBLIC LAW 95-113—SEPT. 29, 1977 households which receive nonexcluded income of the type specified in subsection (d)(3) of this section, income shall be calculated by being averaged over the period for which it is provided. Financial "(g) The Secretary shall prescribe the types and allowable amounts resources, of financial resources (liquid and nonliquid assets) an eligible house- allowances. hold may own, and shall, in so doing, assure that a household other- wise eligible to participate in the food stamp program will not be eligible to participate if its resources exceed $1,750, or, in the case of a household consisting of two or more persons, one of whom is age 60 or oyer, if its resources exceed $3,000. The Secretary shall, in prescrib- ing inclusions in, and exclusions from, financial resources, follow the regulations in force as of June 1, 1977, and shall, in addition, (1) include in financial resources any boats, snowmobiles, and airplanes used for recreational purposes, any vacation homes, any mobile homes used primarily for vacation purposes, and any licensed vehicle (other than one used to produce earned income) used for household trans- portation or used to obtain or continue employment or to transport disabled household members to the extent that the fair market value Study, report to of any such vehicle exceeds $4,500, and (2) study and develop means congressional of improving the effectiveness of these resource requirements in limit- committees. ing participation to households in need of food assistance, and imple- ment and report the results of such study and the Secretary's plans to the Committee on Agriculture of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate no later than June 1 1978. Emergency "(h)(1) The Secretary shall, after consultation with the official standards. empowered to exercise the authority provided for by section 302(a) of 42 use 5142. the Disaster Relief Act of 1974, establish temporary emergency stand- ards of eligibility for the duration of the emergency for households who are victims of a disaster which disrupts commercial channels of food distribution, if such households are in need of temporary food assistance and if commercial channels of food distribution have again become available to meet the temporary food needs of such households. Such standards as are prescribed for individual emergencies may be promulgated without regard to section 4(c) of this Act or the proce- dures set forth in section 553 of title 5 of the United States Code. Food Stamp "(2) The Secretary shall establish a Food Stamp Disaster Task Disaster Task Force, to assist States in implementing and operating the disaster pro- Force. gram, which shall be available to go into a disaster area and provide Establishment. direct assistance to State and local officials. " E L I G I B I L I T Y DISQUALIFICATIONS 7 use 2015. "SEC. 6. (a) In addition to meeting the standards of eligibility pre- scribed in section 5 of this Act, households and individuals who are members of eligible households must also meet and comply with the specific requirements of this section to be eligible for participation in the food stamp program. "(b) No individual who is a member of a household otherwise eligible to participate in the food stamp program shall be eligible to participate for (1) three months after such individual has been found by a State agency after notice and hearing at the State level, or after failure to appeal a local hearing to the State level, to have fraudulently used, presented, transferred, acquired, received, possessed, or altered coupons or authorization cards, or (2) a period of not less than six and not more than twenty-four months, as determined by the court, after
PUBLIC LAW 95-113—SEPT. 29, 1977 91 STAT. 965 such individual has been found by a court of appropriate jurisdiction, with a State or a political subdivision thereof or the United States as prosecutor or plaintiff, to have been criminally or civilly fraudulent in the use, presentation, transfer, acquisition, receipt, possession, or alter- ation of coupons or authorization cards, or (3) both of the periods specified in clauses (1) and (2) of this subsection. Each such period of ineligibility is to take effect immediately upon the relevant administra- tive or judicial finding and to remain in effect, without possibility of administrative stay, unless and until the finding of fraud is sulise- quently reversed by a court of appropriate jurisdiction, but in no event shall the period of disqualification be subject to judicial review, "(c) No household shall be eligible to participate in the food stamp program if it refuses to cooperate in providing information to the State agency that is necessary for making a determination of its eli- gibility or for completing any subsequent review of its eligibility. Every household that is participating in the food stamp program Changes, report shall report or cause to be reported to the State agency, on a form *« State agency, designed or approved by the Secretary (that shall contain a description in understandable terms in prominent and boldface lettering of tlie appropriate civil and criminal provisions dealing with violations of this Act, including the penalties therefor, by members of an eligible household) changes in income or household circumstances which the Secretary deems necessary in order to assure accurate eligibility and benefit determinations. The reporting requirement prescribed by this subsection shall be the sole such requirement for reporting changes in income or in household circumstances for participating households. "(d) (1) Unless otherwise exempted by the provisions of paragraph (d) (2) of this subsection, no household shall be eligible for assist- ance under this Act if it includes a physically and mentally fit person between the ages of eighteen and sixty who (i) refuses at the time of application and once every six months thereafter to register for employment in a manner determined by the Secretary; (ii) refuses to fulfill whatever reasonable reporting and inquiry about employment requirements as are prescribed by the Secretary; (iii) is head of the household and voluntarily quits any job without good cause, unless the household was certified for benefits under this Act immediately prior to such unemployment: Provided^ That the period of ineligibility shall be sixty days from the time of the voluntary quit; or (iv) refuses without good cause to accept an offer of employment at a wage not less than the higher of either the applicable State or Federal minimum wage, or 80 per centum of the wage that would have gov- erned had the minimum hourly rate under the Fair Labor Standards Act of 1988, as amended (29 U.S.C. 206(a) (1)), been applicable to the offer of employment, and at a site or plant not then subject to a strike or lockout. "(2) A person who otherwise would be required to comply with the Exemptions, requirements of paragraph (1) of this subsection shall be exempt from such requirements if he or she is (A) currently subject to and complying with a work registration requirement under title IV of the Social Security Act, as amended (42 U.S.C. 602), or the Federal-State unemployment compensation system; (B) a parent or other member of a household with responsibility for the care of a dependent child under age twelve or of an incapacitated person: (C) a parent or other caretaker of a child in a household where there is another able-bodied parent who is subject to the requirements of this subsection; (D) a bona fide student enrolled at least half time in
91 STAT. 966 PUBLIC LAW 95-113—SEPT. 29, 1977 any recognized school, training program, or institution of higher edu- cation (except that any such person shall be subject to the require- ments of paragraph (1) of this subsection during any period of more than thirty days when such school or program is in vacation or recess and any such person enrolled in an institution of higher education shall be subject to the requirements of subsection (e) (3) (B) of this section as well); (E) a regular participant in a drug addiction or alcoholic treatment and rehabilitation program; or (F) employed a minimum of thirty hours per week or receiving weekly earnings which equal the minimum hourly rate under the Fair Labor Standards Act of 1938, as amended (29 U.S.C. 206(a)(1)), multiplied by thirty hours. "(3) To the extent that a State employment service is assigned responsibility for administering the provisions of subsection (d) of this section, it shall comply with regulations issued jointly by the - Secretary and the Secretary of Labor, which regulations shall be • patterned to the maximum extent practicable on the work incentive program requirements set forth in title IV of the Social Security Act (42 U.S.C. 630 et. seq.) and shall take into account the diversity of the needs of the food stamp work registration population. " (e) No individual who is a member of a household otherwise eligible to participate in the food stamp program under this section shall be eligible to participate in the food stamp program as a member of that or any other household if he or she (1) has reached his or her eighteenth birthday, (2) is enrolled at least half time in an insti- tution of higher education, and (3) (A) is properly claimed or could properly be claimed as a dependent child for Federal income tax purposes by a taxpayer who is not a member of an eligible house- hold or (B) during the regular school year (i) is not employed a minimum of twenty hours per week or is not participating in a federally financed work study program, (ii) does not have weekly earnings which at least equal the minimum hourly rate under the Fair Labor Standards Act of 1938, as amended (29 U.S.C. 206(a)(1)), multiplied by twenty hours, (iii) is not registered for work amounting to at least twenty hours per week, (iv) is not the head of a household containing one or more other persons who are dependents of that individual because he or she supplies more than half of their support, or (v) is not covered by an exemption from the work registration requirement contained in subsection (d) of this sec- tion other than clause (D) of paragraph (2) of that subsection. "(f) No individual who is a member of a household otherwise eligi- ble to participate in the food stamp program under this section shall be eligible to participate in the food stamp program as a member of that or any other household unless he or she is (1) a resident of the United States and (2) either (A) a citizen or (B) an alien lawfully .'! • admitted for permanent residence as an immigrant as defined by sec- tions 101(a) (15) and 101(a) (20) of the Immigration and Nationality Act (8 U.S.C. 1101(a) (15) and 8 U.S.C. 1101(a) (20)), excluding, among others, alien visitors, tourists, diplomats, and students who enter the United States temporarily with no intention of abandoning their residence in a foreign country; or (C) an alien who entered the United States prior to June 30, 1948, or such subsequent date as is enacted by law, has continuously maintained his or her residence in the United States since then, and is not ineligible for citizenship, but who is deemed to be lawfully admitted for permanent residence as a result of an exercise of discretion by the Attorney General pursuant to section 249 of the Immigration and Nationality Act (8 U.S.C.
PUBLIC LAW 95-113—SEPT. 29, 1977 91 STAT. 967 1259); or (D) an alien who has qualified for conditional entry pursu- ant to section 203(a) (7) of the Immigration and Nationality Act (8 U.S.C. 1153(a) (7)) because of persecution or fear of persecution on account of race, religion, or political opinion or because of being uprooted by catastrophic natural calamity; or (E) an alien who is lawfully present in the United States as a result of an exercise of dis- cretion by the Attorney General for emergent reasons or reasons deemed strictly in the public interest pursuant to section 212(d) (5) of the Immigration and Nationality Act (8 U.S.C. 1182(d) ( 5 ) ) ; or (F) an alien within the United States as to whom the Attorney General has withheld deportation pursuant to section 243 of the Immigration and Nationality Act (8 U.S.C. 1253(h)) because of the judgment of the Attorney General that the alien would otherwise be subject to per- secution on account of race, religion, or political opinion. No aliens other than the ones specifically described in clauses (B) through (F) of this subsection shall be eligible to participate in the food stamp program as a member of any household. "(g) No individual who receives supplemental security income benefits under title XVI of the Social Security Act, State supple- 42 USC 1381. mentary payments described in section 1616 of such Act, or payments 42 USC 1382« of the type referred to in section 212(a) of Public Law 93-66, as amended, shall be considered to be a member of a household for any 87 Stat. 155. month, if, for such month, such individual resides in a State which provides State supplementary payments (1) of the type described in section 1616(a) of the Social Security Act and section 212(a) of Pub- lic Law 93-66, and (2) the level of which has been found by the Secre- tary of Health, Education, and Welfare to have been specifically increased so as to include the bonus value of food stamps. "(h) No household that knowingly transfers assets for the purpose of qualifying or attempting to qualify for the food stamp program shall be eligible to participate in the program for a period of up to one year from the date of discovery of the transfer. "ISSUANCE AND USE OF COUPONS "SEC. 7. (a) Coupons shall be printed under such arrangements and Printing. in such denominations as may be determined by the Secretary to be 7 USC 2016. necessary, and shall be issued only to households which have been duly certified as eligible to participate in the food stamp program. "(b) Coupons issued to eligfible households shall be used by them only to purchase food in retail food stores which have been approved for participation in the food stamp program at prices prevailing in such stores: Provided^ That nothing in this Act shall be construed as authorizing the Secretary to specify the prices at which food may be sold by wholesale food concerns or retail food stores: Provided fur- ther^ That eligible households using coupons to purchase food may receive cash in change therefor so long as the cash received does not equal or exceed the value of the lowest coupon denomination issued. "(c) Coupons issued to eligible households shall be simple in design Design. and shall include only such words or illustrations as are required to explain their purpose and define their denomination. The name of any public official shall not appear on such coupons. "(d) The Secretary shall develop an appropriate procedure for Inventory levels, determining and monitoring the level of coupon inventories in the monitorship. hands of coupon issuers for the purpose of providing that such inven- tories are at proper levels (taking into consideration the historical and projected volume of coupon distribution by such issuers). Such proce- dures shall provide that coupon inventories in the hands of such issuers
91 STAT. 968 PUBLIC LAW 95-113—SEPT. 29, 1977 are not in excess of the reasonable needs of such issuers taking into consideration the ease with which such coupon inventories may be Monthly resupplied. The Secretary shall require each coupon issuer at intervals operations report. prescribed by the Secretary, but not less often than monthly, to send to the Secretary or the Secretary's designee, which may include the State agency, a written report of the issuer's operations during such period. Oath, In addition to other information deemed by the Secretary to be appro- certification by priate, the Secretary shall require that the report contain an oath, or issuer. affirmation, signed by the coupon issuer, or in the case of a corporation or other entity not a natural person, by an appropriate official of the coupon issuer, certifying that the information contained in the report is true and correct to the best of such person's knowledge and belief. Delivery and "(e) The Secretary shall prescribe appropriate procedures for the controls, delivery of coupons to coupon issuers and for the subsequent controls procedures. to be placed over such coupons by coupon issuers in order to ensure adequate accountability. Financial losses. "(f) Notwithstanding any other provision of this Act, the State agency shall be responsible to the Secretary for any financial losses involved in the acceptance, storage, and issuance of coupons. VALUE o r ALLOTMENT 7 use 2017. "SEC. 8 (a) The value of the allotment which State agencies shall be authorized to issue to any households certified as eligible to par- ticipate in the food stamp program shall be equal to the cost to such households of the thrifty food plan reduced by an amount equal to 30 per centum of the household's income, as determined in accordance with section 5 of this Act, rounded to the nearest whole dollar: Pro- vided^ That for households of one and two persons the minimum allot- Report to ment shall be $10 per month. The Secretary shall, six months after the Congress. implementation of the elimination of the charge for allotments and annually thereafter, report to Congress the effect on participation and cost of this elimination. "(b) The value of the allotment provided any eligible household shall not be considered income or resources for any purpose under any Federal, State, or local laws, including, but not limited to, laws relat- ing to taxation, welfare, and public assistance programs, and no par- ticipating State or political subdivision thereof shall decrease any assistance otherwise provided an individual or individuals because of the receipt of an allotment under this Act. "APPROVAL OF RETAIL FOOD STORES AND WHOLESALE FOOD CONCERNS Applications, "SEC. 9. (a) Regulations issued pursuant to this Act shall provide submission. for the submission of applications for approval by retail food stores 7 use 2018. and wholesale food concerns which desire to be authorized to accept and redeem coupons under the food stamp program and for the approval of those applicants whose participation will effectuate the Qualifications. purposes of the food stamp program. In determining the qualifications of applicants, there shall be considered among such other factors as may be appropriate, the following: (1) the nature and extent of the food business conducted by the applicant; (2) the volume of coupon business which may reasonably be expected to be conducted by the applicant food store or wholesale food concern; and (3) the business Certificate. integrity and reputation of the applicant. Approval of an applicant shall be evidenced by the issuance to such applicant of a nontransfer- able certificate of approval.
PUBLIC LAW 95-113—SEPT. 29, 1977 91 STAT. 969 "(b) No wholesale food concern may be authorized to accept and redeem coupons unless the Secretary determines that its participation is required for the effective and efficient operation of the food stamp program. In addition, no firm may be authorized to accept and redeem coupons as both a retail food store and as a wholesale food concern at the same time. "(c) Kegulations issued pursuant to this Act shall require an Information, applicant retail food store or wholesale food concern to submit infor- submittal. mation which will permit a determination to be made as to whether such applicant qualifies, or continues to qualify, for approval under the provisions of this Act or the regulations issued pursuant to this Act. Regulations issued pursuant to this Act shall provide for safeguards Safeguards, which limit the use or disclosure of information obtained under the authority granted by this subsection to purposes directly connected with administration and enforcement of the provisions of this Act or the regulations issued pursuant to this Act. "(d) Any retail food store or wholesale food concern which has Hearing, failed upon application to receive approval to participate in the food stamp program may obtain a hearing on such refusal as provided in section 14 of this Act. a REDEMPTION OF COUPONS "SEC. 10. Regulations issued pursuant to this Act shall provide for 7 use 2019. the redemption of coupons accepted by retail food stores through approved wholesale food concerns or through banks, with the coopera- tion of the Treasury Department, except that retail food stores defined in section S(k) (4) of this Act shall be authorized to redeem their members' food coupons prior to receipt by the members of the food so purchased and private nonprofit organizations or institutions which serve meals to narcotics addicts or alcoholics in drug addiction or alcoholic treatment and rehabilitation programs shall not be author- ized to redeem coupons through banks. u ADMINISTRATION "SEC. 11. (a) The State agency of each participating State shall 7 USC 2020. assume responsibility for the certification of applicant households and for the issuance of coupons and the control and accountability thereof. There shall be kept such records as may be necessary to ascertain Record whether the program is being conducted in compliance with the pro- retention. visions of this Act and the regulations issued pursuant to this Act. Such records shall be available for inspection and audit at any reason- Inspection and able time and shall be preserved for such period of time, not less than audit. three years, as may be specified in the regulations issued pursuant to this Act. "(b) Certification of a household as eligible in any political sub- Certification, division shall, in the event of removal of such household to another political subdivision in which the food stamp program is operating, remain valid for participation in the food stamp program for a period of sixty days from the date of such removal. "(c) In the certification of applicant households for the food stamp program, there shall be no discrimination by reason of race, sex, reli- gious creed, national origin, or political beliefs. "(d) The State agency (as defined in section 3(n) (1) of this Act) Plan of operation, of each State desiring to participate in the food stamp program shall approval, submit for approval a plan of operation specifying the manner in which such program will be conducted within the State in every politi-
91 STAT. 970 PUBLIC LAW 95-113—SEPT. 29, 1977 cal subdivision. In the case of all or part of an Indian reservation, the State agency as defined in section 3(n) (1) of this Act shall be respon- sible for conducting such program on such reservation unless the Secre- tary determines that the State agency (as defined in section 3 (n) (1) of this Act) is failing, subsequent to the enactment of this Act, properly to administer such program on such reservation in accordance with the purposes of this Act and further determines that the State agency as defined in section 3(n) (2) of this Act is capable of effectively and efficiently conducting such program, in light of the distance of the reservation from State agency-operated certification and issuance cen- ters, the previous experience of such tribal organization in the opera- tion of programs authorized under the Indian Self-Determination Act 25 use 450f (25 U.S.C. 450) and similar Acts of Congress, the tribal organization's note. management and fiscal capabilities, and the adequacy of measures taken by the tribal organization to ensure that there shall be no dis- crimination in the operation of the program on the basis of race, color, sex, or national origin, in which event such State agency shall be responsible for conducting such program and submitting for approval a plan of operation specifying the manner in which such program will Training and be conducted. The Secretary, upon the request of a tribal organization, assistance. shall provide the designees of such organization with appropriate training and technical assistance to enable them to qualify as expedi- tiously as possible as a State agency pursuant to section 3(n) (2) of Consultation with this Act. A State agency, as defined in section 3(n) (1) of this Act, tribal before it submits its plan of operation to the Secretary for the adminis- organization. tration of the food stamp program on all or part of an Indian reserva- tion, shall consult in good faith with the tribal organization about that portion of the State's plan of operation pertaining to the implementa- tion of the program for members of the tribe, and shall implement the program in a manner that is responsive to the needs of the Indians on the reservation as determined by ongoing consultation with the tribal organization. "(e) The State plan of operation required under subsection (d) of this section shall provide, among such other provisions as may be required by regulation— Notification. "(1) that the State agency shall (A) inform low-income house- holds about the availability, eligibility requirements, and benefits of the food s^amp program, including, but not limited to, notifi- cation to recipients of aid to families with dependent children, supplemental security income, and unemployment compensation, distribution of application forms, and associated instructions in filling out such forms, and on the documentation required pursu- ant to paragraph (3) of this subsection; (B) not conduct any other outreach activities of a noninformational nature in those areas in which a federally funded community action program is Bilingual in operation and conducting food s+amp outreach; and (C) use personnel and appropriate bilingual personnel and printed material in the materials. administration of the program in those portions of political sub- divisions in the State in which a substantial number of members of low-income households speak a language other than English; Application, "(2) that each household which contacts a food stamp office filing. in person during office hours to make what may reasonably be interpreted as an oral or written request for food stamp assistance shall receive and shall be permitted to file, on the same day that such contact is first made, a simplified, uniform national applica- tion form for participation in the food stamp program designed by the Secretary, unless the Secretary approves a deviation from
PUBLIC LAW 95-113—SEPT. 29, 1977 91 STAT. 971 that form by a particular State agency because of the use by that agency of a dual public assistance food stamp application form pursuant to subsection (i) of this section, the requirements of an agency's computer system, or other exigencies as determined by the Secretary. Each application form shall contain a description Application foi-m. in understandable terms in prominent and boldface lettering of the appropriate civil and criminal provisions dealing with viola- tions of this Act, including the penalties therefor, by members of an eligible household. The State agency shall comply with the standards established by the Secretary for points and hours of certification, and for telephone contact by, mail delivery of forms to and mail return of forms by, and subsequent home or telephone interview with, the elderly, physically or mentally handicapped, and persons otherwise unable, solely because of transportation difficulties and similar hardships, to appear in person at a certifi- cation office or through a representative pursuant to paragraph (7) of this subsection, so that such persons may have an adequate opportunity to be certified properly; "(3) that the State agency shall thereafter promptly deter- mine the eligibility of each applicant household by way of veri- fication only of income other than that determined to be excluded by section 5(d) of this Act and such other eligibility factors as the Secretary determines to be necessary to implement sections 5 and 6 of this Act, so as to complete certification of and provide an allotment retroactive to the period of application to any eligi- ble household not later than thirty days following its filing of an application; " (4) that the State agency shall insure that each participating Certification household receive a notice of expiration of its certification immedi- expiration, ately prior to or at the start of the last month of its certification notice. period advising it that it must submit a new application in order Recertification. to renew its eligibility for a new certification period and, further, that each such household which seeks to be certified another time or more times thereafter by filing an application for such recertifi- cation no later than fifteen days prior to the day upon which its existing certification period expires shall, if found to be still eligible, receive its allotment no later than one month after the receipt of the last allotment issued to it pursuant to its prior certification, but if such household is found to be ineligible or to be eligible for a smaller allotment during the new certification period it shall not continue to participate and receive benefits on the basis authorized for the preceding certification period even if it makes a timely request for a fair hearing pursuant to paragraph (10) of this subsection; "(5) the specific standards to be used in determining the eligi- bility of applicant households which shall be in accordance with sections 5 and 6 of this Act and shall include no additional require- ments imposed by the State agency; "(6) that (A) the State agency shall undertake the certification Certification, of applicant households in accordance with the general procedures prescribed by the Secretary in the regulations issued pursuant to this Act; (B) the State agency personnel utilized in undertaking such certification shall be employed in 'accordance with the current standards for a Merit System of Personnel Administration or any standards later prescribed by the United States Civil Service Commission pursuant to section 208 of the Intergovernmental Personnel Act of 1970 modifying or superseding such standards 42 USC 4728. relating to the establishment and maintenance of personnel stand-
91 STAT. 972 PUBLIC LAW 95-113—SEPT. 29, 1977 Personnel, ards on a merit basis; and (C) the State agency shall undertake training. to provide a continuing, comprehensive program of training for all personnel undertaking such certification; "(7) that any applicant household may be represented in the certification process and that any eligible household may be rep- resented in coupon issuance or food purchase by a person other than a member of the household so long as that person has been clearly designated as the representative of that household for that purpose by the head of the household or the spouse of the head, and, where the certification process is concerned, the rep- resentative is an adult who is sufficiently aware of relevant house- hold circumstances; Safeguards. "(8) safeguards which limit the use or disclosure of informa- tion obtained from applicant households to persons directly connected with the administration or enforcement of the pro- visions of this Act or the regulations issued pursuant to this Act; "(9) that households in immediate need because of no income as defined in sections 5 (d) and (e) of this Act receive coupons on an expedited basis; Hearing. "(10) for the granting of a fair hearing and a prompt deter- mination thereafter to any household aggrieved by the action of the State agency under any provision of its plan of operation as it affects the participation of such household in the food stamp program or by a claim against the household for an overissuance: Provided^ That any household which timely requests such a fair hearing after receiving individual notice of agency action reduc- ing or terminating its benefits within the household's certification period shall continue to participate and receive benefits on the basis authorized immediately prior to the notice of adverse action until such time as the fair hearing is completed and an adverse decision rendered or until such time as the household's certifica- tion period terminates, whichever occurs earlier; "(11) for the prompt restoration in the form of coupons to households of any allotment or portion thereof which has been wrongfully denied or terminated; Reports. "(12) for the submission of such reports and other information as from time to time may be required by the Secretary; "(13) for compliance with standards set by the Secretary with respect to points and hours of coupon issuance; " (14) for indicators of expected performance in the administra- tion of the program; Poster displays. "(15) that the State agency shall prominently display in all food stamp and public assistance offices posters prepared or obtained by the Secretary describing the information contained in subparagraphs (A) through (D) of this paragraph and shall make available in such offices for home use pamphlets prepared or obtained by the Secretary listing (A) foods that contain sub- stantial amounts of recommended daily allowances of vitamins, minerals, and protein for children and adults; (B) menus that combine such foods into meals; (C) details on eligibility for other programs administered by the Secretary that provide nutrition benefits; and (D) general information on the relationship between health and diet; and Disaster victims. " (16) that the State agency shall specify a plan of operation for providing food stamps for households that are victims of a disas- ter ; that such plan shall include, but not be limited to, procedures for informing the public about the disaster program and how to apply for its benefits, coordination with Federal and private dis-
PUBLIC LAW 95-113—SEPT. 29, 1977 91 STAT. 973 aster relief agencies and local government officials, application procedures to reduce hardship and inconvenience and deter fraud, and instruction of caseworkers in procedures for implementing and operating the disaster program. "(f) To encourage the purchase of nutritious foods, the Secretary Food and shall extend the expanded food and nutrition education program to nutrition the greatest extent possible to reach food stamp program participants. program, extension. The program shall be further supplemented by the development of single concept printed materials, specifically designed for persons with low reading and comprehension levels, on how to buy and prepare more nutritious and economical meals and on the relationship between food and good health. "(g) If the Secretary determines that in the administration of the State food stamp program there is a failure by a State agency to comply with noncompliance, any of the provisions of this Act, the regulations issued pursuant to this correction. Act, or the State plan of operation submitted pursuant to subsection (d) of this section, the Secretary shall immediately inform such State agency of such failure and shall allow the State agency a specified period of time for the correction of such failure. If the State agency Injunctive relief. does not correct such failure within that specified period, the Secretary may refer the matter to the Attorney General with a request that injunctive relief be sought to require compliance forthwith by the State agency and, upon suit by the Attorney General in an appropriate dis- trict court of the United States having jurisdiction of the geographic area in which the State agency is located and a showing that noncom- pliance has occurred, appropriate injunctive relief shall issue. "(h) If the Secretary determines that there has been negligence or Deposit by States. fraud on the part of the State agency in the certification of applicant households, the State shall, upon request of the Secretary, deposit into the Treasury of the United States, a sum equal to the face value of any coupon or coupons issued as a result of such negligence or fraud. "(i) Notwithstanding any other provision of law, the Secretary and System, the Secretary of Health, Education, and Welfare shall develop a sys- development. tem by which (1) a single interview shall be conducted to determine eligibility for the food stamp program and the aid to families with dependent children program under part A of title IV of the Social Security Act; (2) households in which all members are recipients of 42 u s e 601. supplemental security income shall be permitted to apply for partici- pation in the food stamp program by executing a simplified affidavit at the social security office and be certified for eligibility utilizing infor- mation contained in files of the Social Security Administration; (3) households in which all members are included in a federally aided public assistance or State or local general assistance grant shall have their application for participation in the food stamp program con- tained in the public assistance or general assistance application form; and (4) new applicants, as well as households which have recently lost or been denied eligibility for public assistance or general assist- ance, shall be certified for participation in the food stamp program based on information in the public assistance or general assistance case file to the extent that reasonably verified information is available in such case file. "(j) The Secretary, in conjunction with the Secretary of Health, Joint regulations, Education, and Welfare, is authorized to prescribe regulations per- USDA—HEW. mitting applicants for and recipients of social security benefits to apply for food stamps at social security offices and be certified for food stamp eligibility in such offices in order that the application and certification for food stamp assistance may be accomplished as effi- ciently and conveniently as possible.
91 STAT. 974 PUBLIC LAW 95-113—SEPT. 29, 1977 "(k) Subject to the approval of the President, post offices in all or part of the State may issue, upon request by the State agency, food stamps to eligible households. "CIVIL MONEY PENALTIES AND DISQUALIFICATION OF RETAIL FOOD STORES AND WHOLESALE FOOD CONCERNS 7 use 2021. "SEC. 12. Any approved retail food store or wholesale food concern may be disqualified for a specified period of time from further partici- pation in the food stamp program, or subjected to a civil money penalty of up to $5,000 for each violation if the Secretary determines that its disqualification would cause hardship to food stamp house- holds, on a finding, made as specified in the regulations, that such store or concern has violated any of the provisions of this Act or the regulations issued pursuant to this Act. Such disqualification shall be for such period of time as may be determined in accordance with regu- Review. lations issued pursuant to this Act. The action of disqualification or the imposition of a civil money penalty shall be subject to review as provided in section 14 of this Act. "DETERMINATION OF DISPOSITION OF CLAIMS 7 use 2022. "SEC. 13. The Secretary shall have the power to determine the amount of and settle and adjust any claim and to compromise or deny all or part of any such claim or claims arising under the provisions of this Act or the regulations issued pursuant to this Act, including, but not limited to, claims arising from fraudulent and nonfraudulent Delegation of overissuances to recipients. Such powers with respect to claims against authority. recipients may be delegated by the Secretary to State agencies. " A D M I N I S T R A T I V E A N D JUDICIAL REVIEW Notice. "SEC. 14. Whenever an application of a retail food store or wholesale 7 use 2023. food concern to participate in the food stamp program is denied pur- suant to section 9 of this Act, or a retail food store or wholesale food concern is disqualified or subjected to a civil money penalty under the provisions of section 12 of this Act, or all or part of any claim of a retail food store or wholesale food concern is denied under the pro- visions of section 13 of this Act, or a claim against a State agency is stated pursuant to the provisions of section 13 of this Act, notice of such administrative action shall be issued to the retail food store, wholesale food concern, or State agency involved. Such notice shall be Request for delivered by certified mail or personal service. If such store, concern, or submission of State agency is aggrieved by such action, it may, in accordance with information, regulations promulgated under this Act, within ten days of the date filing. of delivery of such notice, file a written request for an opportunity to submit information in support of its position to such person or persons as the regulations may designate. If such a request is not made or if such store, concern, or State agency fails to submit information in support of its position after filing a request, the administrative determination shall be final. If such request is made by such store, concern, or State agency, such information as may be submitted by the store, concern, or State agency, as well as such other informa- tion as may be available, shall be reviewed by the person or persons designated by the Secretary, who shall, subject to the right of judi- cial review hereinafter provided, make a determination which shall be final and which shall take effect thirty days after the date of the
PUBLIC LAW 95-113—SEPT. 29, 1977 91 STAT. 975 delivery or service of such final notice of determination. If the store, Complaint, filing. concern, or State agency feels aggrieved by such final determination, it may obtain judicial review thereof by filing a complaint against the United States in the United States court for the district in which it resides or is engaged in business, or, in the case of a retail food store or wholesale food concern, in any court of record of the State having competent jurisdiction, within t h i r t y days after the date of delivery or service of the final notice of determination upon it, requesting the court to set aside such determination. T h e copy of the summons and complaint required to be delivered to the official or agency whose order is being attacked shall be sent to the Secretary or such person or persons as the Secretary may designate to receive service of process. The suit in the United States district court or State court shall be a trial de novo by the court in which the court shall determine the validity of the questioned administrative action in issue. If the court determines that such administrative action is invalid, it shall enter such judgment or order as it determines is in accordance with the law and the evidence. D u r i n g the pendency of such judicial Stay. review, or any appeal therefrom, the administrative action under review shall be and remain in full force and effect, unless an application to the court on not less than ten days' notice, and after hearing thereon and a showing of irreparable injury, the court temporarily stays such administrative action pending disposition of such trial or appeal. "VIOLATIONS AND ENFORCEMENT " S E C . 15. (a) Notwithstanding any other provision of this Act, the Coupon Secretary may provide for the issuance or presentment for redemption redemption, of coupons to such person or persons, and at such times and in such 7 use 2024. manner, as the Secretary deems necessary or appropriate to protect the interests of t h e United States or to ensure enforcement of the pro- visions of this Act or t h e regulations issued pursuant to this Act. " ( b ) Whoever knowingly uses, transfers, acquires, alters, or possesses coupons or authorization cards in any manner not authorized by this Act or the regulations issued pursuant to this Act shall, if such coupons or authorization cards are of the value of $100 or more, be guilty of a felony and shall, upon conviction thereof, be fined not more t h a n $10,000 or imprisoned for not more t h a n five years, or both, or, if such coupons or authorization cards are of a value of less t h a n $100, shall be guilty of a misdemeanor and shall, upon conviction thereof, be fined not more than $1,000 or imprisoned for not more than one year, or both. " ( c ) Whoever presents, or causes to be presented, coupons for pay- ment or redemption of the value of $100 or more, knowing t h e same to have been received, transferred, or used in any manner in violation of the provisions of this Act or the regulations issued pursuant to this Act shall be guilty of a felony and shall, upon conviction thereof, be fined not more t h a n $10,000 or imprisoned for not more t h a n five years, or both, or, if such coupons are of a value of less than $100, shall be guilty of a misdemeanor and shall, upon conviction thereof, be fined not more than $1,000 or imprisoned for not more than one year, or both. " ( d ) Coupons issued pursuant to this Act shall be deemed to be obligations of the United States within the meaning of section 8 of title 18, United States Code. " ( e ) Any coupon issuer or any officer, employee, or agent thereof convicted of failing to provide the report required under section 7 ( d ) of this Act or of violating the regulations issued under section 7 (d) and (e) of this Act shall be fined not more t h a n $1,000 or imprisoned for not more than one year, or both. 29-194 0 -
91 STAT. 976 PUBLIC LAW 95-113—SEPT. 29, 1977 "(f) Any coupon issuer or any officer, employee, or agent thereof convicted of knowingly providing false information in the report required under section 7(d) of this Act shall be fined not more than $10,000 or imprisoned not more than five years, or both. "ADMINISTRATIVE COST-SHARING AND QUALITY CONTROL f 7 use 2025. "SEC. 16. (a) The Secretary is authorized to pay to each State agency an amount equal to 50 per centum of all administrative costs involved in each State agency's operation of the food stamp program, which costs shall include, but not be limited to, the cost of (1) outreach, (2) the certification of applicant households, (3) the acceptance, stor- age, protection, control, and accounting of coupons after their delivery to receiving points within the State, (4) the issuance of coupons to all eligible households, and (5) fair hearings: Provided^ That the Secretary is authorized to pay each State agency an amount not less than 75 per centum of the costs of State food stamp program investi- gations and prosecutions, and is further authorized at the Secretary's discretion to pay any State agency administering the food stamp pro- gram on all or part of an Indian reservation under section 11(d) of this Act such amounts for administrative costs as the Secretary deter- mines to be necessary for effective operation of the food stamp program. Administration, "(b) The Secretary shall (1) establish standards for the efficient standards. and effective administration of the food stamp program by the States, Reports. including, but not limited to, staffing standards such as caseload per certification worker limitations, and (2) instruct each State to submit, at regular intervals, reports which shall specify the specific adminis- trative actions proposed to be taken and implemented in order to meet the efficiency and effectiveness standards established pursuant Funds, to clause (1) of this subsection. If the Secretary finds that a State withholding. has failed without good cause to meet any of the Secretary's standards, or has failed to carry out the approved State plan of operation under section 11(d) of this Act, the Secretary shall withhold from the State such fimds authorized under subsections (a) and (c) of this section as the Secretary determines to be appropriate. Federal share, "(c) Effective October 1,1978, the Secretary is authorized to adjust adjustment. a State agency's federally funded share of administrative costs pur- Effective date. suant to subsection (a) of this section, other than the costs already shared in excess of 50 per centum as described in the exception clause of subsection (a) of this section, by increasing such share to 60 per centum of all such administrative costs in the case of a State agency whose cumulative allotment error rates with respect to eligibility, over- issuance, and underissuance as calculated in the quality control program undertaken pursuant to subsection (d) (1) of this section is less than five per centum. Annual quality "(d) Effective October 1, 1978, and annually thereafter, each State control plan, not receiving an increased share of administrative costs pursuant to submittal to subsection (c) of this section shall be required to develop and submit Secretary. Effective date. to the Secretary for approval, as part of the plan of operation required to be submitted under section 11(d) of this Act, a quality control plan for the State which shall specify the actions such State proposes to take in order to reduce— " (1) the incidence of error rates in and the value of-— " (A) food stamp allotments for households which fail to meet basic program eligibility requirements;
PUBLIC LAW 95-113—SEPT. 29, 1977 91 STAT. 977 "(B) food stamp allotments overissued to eligible house- holds ; and "(C) food stamp allotments underissued to eligible house- holds; and " (2) the incidence of invalid decisions in certifying or denying eligibility. "(e) As used in this section 'quality control' means monitoring and "Quality reducing the rate of errors in determining basic eligibility and benefit control." levels. "RESEARCH, DEMONSTRATION, AND EVALUATIONS "SEC. IT. (a) The Secretary may, by way of making contracts with Contracts or or grants to public or private organizations or agencies, undertake grants. research that will help improve the administration and effectiveness of 7 u s e 2026. the food stamp program in delivering nutrition-related benefits. "(b) (1) The Secretary is authorized to conduct on a trial basis, in Pilot projects. one or more areas of the United States, pilot or experimental projects designed to test program changes that might increase the efficiency of the food stamp program and improve the delivery of food stamp benefits to eligible households, including projects involving the pay- ment of the value of allotments in the form of cash to eligible house- holds all of whose members are either age sixty-five or over or entitled to supplemental security income benefits under title XVI of the Social Security Act, the use of countersigned food coupons or similar identifi- 42 use 1381. cation mechanisms that do not invade a household's privacy, and the use of food checks or other voucher-type forms in place of food cou- pons. The Secretary may waive the requirements of this Act to the Waiver. degree necessary for such projects to be conducted, except that no project shall be implemented which would lower or further restrict the income or resource standards or benefit levels provided pursuant to sections 5 and 8 of this Act. "(2) The Secretary shall, jointly with the Secretary of Labor, imple- Pilot projects. ment two pilot projects involving the performance of work in return for food stamp benefits in each of the seven administrative regions of the Food and Nutrition Service of the Department of Agriculture, such projects to be (A) appropriately divided in each region between locations that are urban and rural in characteristics and among loca- tions selected to provide a representative cross-section of politica] sub- divisions in the States and (B) submitted for approval prior to project Submittal for implementation, together with the names of the agencies or organiza- approval to tions that will be engaged in such projects, to the Committee on Agri- congressional committees. culture of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate. LTnder such pilot Eligibility. projects, any person who is subject to the work registration require- ments pursuant to section 6(d) of this Act, and is a member of a household that does not have earned income equal to or exceeding the allotment to which the household is otherwise entitled pursuant to section 8(a) of this Act, shall be ineligible to participate in the food stamp program as a member of any household during any month in which such person refuses, after not being offered employment in the private sector of the economy for more than thirty days after the ini- tial registration for employment referred to in section 6(d) (1) (i) of this Act, to accept an offer of employment from a political subdivision or a prime sponsor pursuant to the Comprehensive Employment and Training Act of 1973, as amended (29 U.S.C. 812), for which employ- ment compensation shall be paid in the form of the allotment to which
91 STAT. 978 PUBLIC LAW 95-113—SEPT. 29, 1977 the household is otherwise entitled pursuant to section 8(a) of this Act, with each hour of employment entitling the household to a portion of the allotment equal in value to 100 per centum of the Federal minimum hourly rate under the Fair Labor Standards Act of 1938, as amended (29 U.S.C. 206(a)(1)); which employment shall not, together with any other hours worked in any other capacity by such person exceed forty hours a week; and which employment shall not be used by the employer to fill a job opening created by the action of such employer in laying off or terminating the employment of any regu- lar employee not supported under this paragraph in anticipation of filling the vacancy so created by hiring an employee or employees to be supported under this paragraph: Provided^ That all of the political subdivision's or prime sponsor's public service jobs supported under the Comprehensive Employment and Training Act of 1973, as amended 2 « u s e 801 note. (29 U.S.C. 812), are filled before such subdivision or sponsor can extend a job offer pursuant to this paragraph: Provided further, That the sponsor of each such project shall provide the assurances required of prime sponsors under section 205(c) (7), (8), (15), (19), and (24) of the Comprehensive Employment and Training Act of 1973, as amended (29 U.S.C. 845(c)), and the Secretary shall require such sponsors to comply with the conditions contained in sections 208(a) (1), (4), and (5) and (c) and 703(4) of the Comprehensive Employ- ment and Training Act of 1973, as amended (29 U.S.C. 848 (a) and Joint reports, (c) and 983). The Secretary and the Secretary of Labor shall jointly issuance to issue reports to the appropriate committees of Congress on the congressional progress of such pilot projects no later than six and twelve months committees. following enactment of this Act, and shall issue a final report describ- ing the results of such pilot projects no later than eighteen months following enactment of this Act. Evaluation "(c) The Secretary shall develop and implement measures for eval- measures. uating, on an annual or more frequent basis, the effectiveness of the food stamp program in achieving its stated objectives, including, but not limited to, the program's impact upon the nutritional and eco- nomic status of participating households, the program's impact upon all sectors of the agricultural economy, including farmers and ranch- ers, as well as retail food stores, and the program's relative fairness to households of different income levels, different age composition, differ- ent size, and different regions of residence. Study. "(d) Notwithstanding any other provision of law, the Secretary shall, in consultation with the Secretary of the Treasury, conduct a study, through the use of Federal income tax data, of the feasibility, alternative methods of implementation, and the effects of a program to recover food stamp benefits from members of eligible households in which the adjusted gross income of members of such households for a 26 u s e 1 et seq. calendar year (as defined by the Internal Revenue Code of 1954) may exceed twice the income poverty guidelines set forth in section 5(c) of this Act. Such study shall be conducted in rural and urban areas Report to only on a voluntary basis by food stamp recipients. The Secretary congressional shall, no later than twelve months and eighteen months from the date committees. of enactment of this Act, report the results of the study to the Com- Recommenda- mittees on Agriculture and Ways and Means of the House of Repre- tions. sentatives and to the Committees on Agriculture, Nutrition, and Forestry and Finance of the Senate, together with such recommenda- tions as the Secretary deems appropriate.
PUBLIC LAW 95-113—SEPT. 29, 1977 91 STAT. 979 " A U T H O R I Z A T I O N FOR A P P R O P R I A T I O N S "SEC. 18. (a) To carry out the provisions of this Act, there are 7 use 2027. hereby authorized to be appropriated not in excess of $5,847,600,000 for the fiscal year ending September 30, 1978; not in excess of $6,158,900,000 for the fiscal year ending September 30, 1979; not in excess of $6,188,600,000 for the fiscal year ending September 30,1980; and not in excess of $6,235,900,000 for the fiscal year ending Septem- ber 30,1981. Not to exceed one-fourth of 1 per centum of the previous year's appropriation is authorized in each such fiscal year to carry out the provisions of section 17 of this Act. Sums appropriated under the provisions of this Act shall, notwithstanding the provisions of any other law, continue to remain available until expended. "(b) In any fiscal year, the Secretary shall limit the value of those Allotment value, allotments issued to an amount not in excess of the appropriation for limitation. such fiscal year. If in any fiscal year the Secretary finds that the requirements of participating States will exceed the limitation set herein, the Secretary shall direct State agencies to reduce the value of such allotments to be issued to households certified as eligible to participate in the food stamp program to the extent necessary to com- ply with the provisions of this subsection." CONFORMING AMENDMENTS SEC. 1302. (a)(1) Section 3(b) and section 4(c) of Public Law 93-86 Repeal. are repealed. 7 u s e 2012, (2) The last sentence of section 416 of the Act of October 31, 1949 612c note. (as added by section 411(g) of Public Law 92-603), is repealed. Repeal. (3) Section 8(c) of Public Law 93-233 is amended by striking out 7 u s e 1431. 42 u s e 1382e "the last sentence of section 3(e) of the Food Stamp Act of 1964 (as note. amended by subsection (a) of this section)" and inserting in lieu thereof "section 6(g) of the Food Stamp Act of 1977". (4) Section 8(f) of Public Law 93-233 is amended by striking out everything through "during such period," and inserting in lieu thereof "The amendment made by subsection (e) shall not". (b) The amendments made by this section shall be effective Effective date. October 1, 1977. 7 u s e 2012 note. I M P L E M E N T A T I O N OF T H E FOOD STAMP ACT OF 1977 SEC. 1303. (a) The Secretary of Agriculture shall implement the Food Stamp Act of 1977 as expeditiously as possible consistent with the efficient and effective administration of the food stamp program. The provisions of the Food Stamp Act of 1964, as amended, which eontinuity. are relevant to current regulations of the Secretary governing the food 7 u s e 2011 note. stamp program, shall remain in effect until such regulations are revoked, superseded, amended, or modified by regulations issued pur- suant to the Food Stamp Act of 1977. Coupons issued pursuant to the Food Stamp Act of 1964, as amended, and in general use as of the effective date of the Food Stamp Act of 1977, shall continue to be usable to purchase food, and all other liabilities of the Secretary, States, and applicant or participating households, under the Food Stamp Act of 1964, as amended, shall continue in force until finally resolved or terminated by administrative or judicial action, or other- wise. (b) Pending proceedings under the Food Stamp Act of 1964, as amended, shall not be abated by reason of any provision of the Food
91 STAT. 980 PUBLIC LAW 95-113—SEPT. 29, 1977 Stamp Act of 1977, but shall be disposed of pursuant to the applicable provisions of the Food Stamp Act of 1964, as amended, in effect prior to the effective date of the Food Stamp Act of 1977. (c) Appropriations made available to carry out the Food Stamp Act of 1964, as amended, shall be available to carry out the provisions of the Food Stamp Act of 1977. Quarterly report, (d) The Secretary shall, within six months of enactment of this submittal to Act, submit a quarterly report to the Senate Committee on Agricul- congressional ture, Nutrition, and Forestry and the House Committee on Agricul- committees. ture, setting forth the previous quarter's expenditure, by State, for the food stamp program. Such report shall also include the number of individuals participating in the program and the cost of administer- ing the program at each State level and at the national level. COMMODITY DISTRIBUTION PROGRAMS Effective date. SEC. 1304. (a) Effective October 1, 1977, sections 4(a) and 4(b) of 7 u s e 612c note. the Agriculture and Consumer Protection Act of 1973, as amended, are amended to read as follows: "SEC. 4. (a) Notwithstanding any other provision of law, the Secre- tary may, during fiscal years 1978, 1979, 1980, and 1981, purchase and distribute sufficient agricultural commodities with funds appropriated from the general fund of the Treasury to maintain the traditional level of assistance for food assistance programs as are authorized by law, including but not limited to distribution to institutions, supple- mental feeding programs wherever located, disaster areas, summer camps for children, the United States Trust Territory of the Pacific Islands, and Indians, whenever a tribal organization requests distri- bution of federally donated foods pursuant to section 4(b) of the Food Stamp Act of 1977. In providing for commodity distribution to Indians, the Secretary shall improve the variety and quantity of commodities supplied to Indians in order to provide them an opportu- nity to obtain a more nutritious diet. "(b) The Secretary may furnish commodities to summer camps for children in which the number of adults participating in camp activi- ties as compared with the number of children under 18 years of age so participating is not unreasonable in light of the nature of such camp and the characteristics of the children in attendance.". Effective date. (b) Effective October 1, 1977, the Agriculture and Consumer Pro- tection Act of 1973, as amended, is amended by— 7 u s e 1307 note. (1) redesignating section 5 as section 6; and (2) inserting after section 4 a new section 5 as follows: ; COMMODITY SUPPLEMENTAL EOOD PROGRAM Payment to State "SEC. 5. (a) In carrying out the supplemental feeding program or local agencies. (hereinafter referred to as the 'commodity supplemental food 7 u s e 612c note. program') to which reference is made in section 4 of this Act, the Sec- retary of Agriculture shall pay to each State or local agency adminis- tering any such program, for each of the fiscal years 1978 through 1981, an amount equal to its administrative costs not in excess of an amount equal to 15 per centum of the total amount of the value of commodities made available to the State or local agency for such program in such fiscal year. "(b) During the first three months of any commodity supplemental food program, or until such program reaches its projected caseload level, whichever comes first, the Secretary shall pay those adminis- trative costs necessary to commence the program successfully: Pro-
PUBLIC LAW 95-113—SEPT. 29, 1977 91 STAT. 981 mded^ That in no event shall administrative costs paid by the Secretary for any fiscal year exceed the limitation established in sub- section (a) of this section. "(c) Administrative costs for the purposes of the commodity sup- plemental food program shall include, but not be limited to, expenses for information and referral, operation, monitoring, nutrition educa- tion, start-up costs, and general administration, including staff, ware- house and transportation personnel, insurance, and administration of the State or local office. "(d) During each fiscal year the commodity supplemental food Report to program is in operation, the types and varieties of commodities and congressional committees. their proportional amounts shall be determined by the Secretary, but, if the Secretary proposes to make any significant changes in the types, varieties, or proportional amounts from those that were available or were planned at the beginning of the fiscal year (or as were available during the fiscal year ending June 30, 1976, whichever is greater) the Secretary shall report such changes before implementation to the Committee on Agriculture of the House of Eepresentatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate. "(e) The Secretary of Agriculture is authorized to issue such regu- Regulations. lations as may be necessary to carry out the commodity supplemental food program.". T I T L E XIV—NATIONAL AGRICULTURAL RESEARCH, National Agricultural EXTENSION, AND TEACHING POLICY ACT OF 1977 Research, Extension, and SHORT TITLE Teaching Polic)' Act of 1977. SEC. 1401. This title may be cited as the "National Agricultural 7 u s e 3101 note Research, Extension, and Teaching Policy Act of 1977". Subtitle A—Findings, Purposes, and Definitions FINDIN&S SEC. 1402. Congress finds that— 7 u s e 3101. (1) the Federal Government of the United States has provided funding support for agricultural research and extension for many years in order to promote and protect the general health and wel- fare of the people of the United States, and this support has sig- nificantly contributed to the development of the Nation's agricultural system; (2) the agencies conducting such federally supported research were established at different times in response to different and specific needs and their work is not fully coordinated ; (3) these agencies have only been partially successful in responding to the needs of all persons affected by their research, and useful information produced through such federally sup- ported research is not being efficiently transferred to the people of the United States; (4) expanded agricultural research and extension are needed to meet the rising demand for food and fiber caused by increases in worldwide population and food shortages due to short-term, localized, and adverse climatic conditions; (5) increased research is necessary to alleviate inadequacies of the marketing system (including storage, transportation, and distribution of agricultural and forest products) which have impaired United States agricultural production and utilization;
91 STAT. 982 PUBLIC LAW 95-113—SEPT. 29, 1977 (6) advances in food and agricultural sciences and technology have become increasingly limited by the concentraticMi upon the^ thorough development and exploitation of currently known scientific principles and technological approaches at the ejcpense of more fundamental research, and a strong research effort in the basic sciences is necessary to achieve breakthroughs in knowl- edge that can support new and innovative food and agricultural technologies; (7) Federal funding levels for agricultural research and exten- sion in recent years have not been commensurate with needs stemming from changes in United States agricultural practices and the world food and agricultural situation; (8) new Federal initiatives are needed in the areas of— (A) research to find alternatives to technologies based on fossil fuels; (B) research and extension on human nutrition and food consumption patterns in order to improve the health and vitality of the people of the United States; (C) research to find solutions to environmental problems caused by technological changes in food and agricultural production; (D) aquaeultural research and extension; (E) research and extension directed toward improving '•'" the management and use of the Nation's natural and renewa- ble resources, in order to meet the increased demand for forest products, conserve water resources (through irriga- tion management, tail water reuse, desalination, crop con- version, and other water conservation techniques), conserve •'' soil resources, and properly manage rangelands; (F) improving and expanding the research and extension programs in home economics; (G) extension programs in energy conservation; (H) extension programs in forestry and natural resources, with special emphasis to be given to improving the pro- .. , ductivity of small private woodlands, modernizing wood harvesting and utilization, developing and disseminating reli- able multiple-use resource management information to all landowners and consumers, and the general public, wildlife, watershed, and recreational management, and cultural prac- tices (including reforestation, protection, and related mat- ters) ; (I) research on climate, drought, and weather modification as factors in food and agricultural production; (J) more intensive agricultural research and extension programs oriented to the needs of small farmers and their families and the family farm system, which is a vital com- ponent of the agricultural production capacity of this country; (K) research to expand export markets for agricultural • commodities; (L) development and implementation, through research, of more efficient, less wasteful, and environmentally sound meth- ods of producing, processing, marketing, and utilizing food, fiber, waste products, other nonfood agricultural products, and forest and rangeland products; (M) expanded programs of animal disease and health care (jr research and extension;
PUBLIC LAW 95-113—SEPT. 29, 1977 91 STAT. 983 (N) research to develop new crops, in order to expand our use of varied soils and increase the choice of nutritional and economically viable crops available for cultivation; and (O) investigation and analysis of the practicability, desirability, and feasibility of using organic waste materials to improve soil tilth and fertility, and extension programs to disseminate practical information resulting from such inves- tigations and analyses; and (9) the existing agricultural research system consisting of the Federal Government, the land-grant colleges and universities, other colleges and universities engaged in agricultural I'esearch, the agricultural experiment stations, and the private sector con- stitute an essential national resource which must serve as the foundation for any further strengthening of agricultural research in the United States. PURPOSES SEC. 1403. The purposes of this title are to— 7 USC 3102. (1) establish firmly the Department of Agriculture as the lead agency in the Federal Government for the food and agricultural sciences, and to emphasize that agricultural research, extension, and teaching are distinct missions of the Department of Agri- culture ; (2) undertake the special measures set forth in this title to improve the coordination and planning of agricultural research, identify needs and establish priorities for such research, assure that high priority research is given adequate funding, assure that national agricultural research, extension, and teaching objectives are fully achieved, and assure that the results of agricultural research are effectively communicated and demonstrated to farm- ers, processors, handlers, consumers, and all other users who can benefit therefrom; (3) increase cooperation and coordination in the performance of agricultural research by Federal departments and agencies, the States, State agricultural experiment stations, colleges and uni- versities, and user groups; (4) enable the Federal Government, the States, colleges and universities, and others to implement needed agricultural research, extension, and teaching programs, including the initiatives spec- ified in section 1402(8) of this title, through the establishment of new programs and the improvement of existing programs, as provided for in this title; (5) establish a new program of grants for high-priority agri- cultural research to be awarded on the basis of competition among scientific research workers and all colleges and universities; (6) establish a new program of grants for facilities and instru- mentation used in agricultural research; and (7) establish a new program of education grants and fel- lowships to strengthen training and research programs in the food and agricultural sciences, to be awarded on the basis of competition. DEFINITIONS SEC. 1404. When used in this title— 7 USC 3103. (1) the term "Advisory Board" means the National Agricul- tural Research and Extension Users Advisory Board; (2) the term "a^icultural research" means research in the food and agricultural sciences;
91 STAT. 984 PUBLIC LAW 95-113—SEPT. 29, 1977 (3) the term "aquaculture" means the propagation and rearing of aquacultural species, including, but not limited to, any species of finfish, moUusk, or crustacean (or other aquatic invertebrate), amphibian, reptile, or aquatic plant, in controlled or selected environments; (4) the terms "college" and "university" mean an educational institution in any State which (A) admits as regular students only persons having a certificate of graduation from a school providing secondary education, or the recognized equivalent of such a certifi- cate, (B) is legally authorized within such State to provide a pro- gram of education beyond secondary education, (C) provides an educational program for which a bachelor's degree or any other higher degree is awarded, (D) is a public or other nonprofit insti- tution, and (E) is accredited by a nationally recognized accredit- ing agency or association; (5) the term "cooperative extension services" means the organi- zations established at the land-grant colleges and universities - '' ' under the Smith-Lever Act of May 8, 1914 (38 Stat. 372-374, as amended; 7 U.S.C. 341-349), and section 209(b) of the Act of October 26, 1974 (88 Stat. 1428, as amended; D.C. Code, sec. 31-I7l9(b)); (6) the term "Department of Agriculture" means the United States Department of Agriculture; (7) the term "extension" means the informal education pro- grams conducted in the States in cooperation with the Department of Agriculture; (8) the term "food and agricultural sciences" means sciences relating to food and agriculture in the broadest sense, including the social, economic, and political considerations of— (A) agriculture, including soil and water conservation and use, the use of organic waste materials to improve soil tilth and fertility, plant and animal production and protection, and plant and animal health; (B) the processing, distributing, marketing, and utilization of food and agricultural products; (C) forestry, including range management, production of forest and range products, multiple use of forest and range lands, and urban forestry; (D) aquaculture; ' (E) home economics, human nutrition, and family life; and (F) rural and community development; ' (9) the term "Joint Council" means the Joint Council on Food and Agricultural Sciences; (10) the term "land-grant colleges and universities" means those institutions eligible to receive funds under the Act of July 2, 1862 (12 Stat. 503-505, as amended; 7 U.S.C. 301-305, 307 and 308), or the Act of August 30,1890 (26 Stat. 417-419, as amended; 7 U.S.C. 321-326 and 328), including the Tuskegee Institute; (11) the term "Secretary" means the Secretary of Agriculture of the United States; (12) except as provided in subtitle H of this title, the term ij J ^ "State" means any one of the fifty States, Puerto Rico, Guam, the District of Columbia, and the Virgin Islands of the United States; (13) the term "State agricultural experiment stations" means those institutions eligible to receive funds under the Act of March 2, 1887 (24 Stat. 440-442, as amended; 7 U.S.C. 361a- 361i) ; and
PUBLIC LAW 95-113—SEPT. 29, 1977 91 STAT. 985 (14) the term "teaching" means the formal classroom and lab- oratory instruction and training in the food and agricultural sciences conducted at colleges and universities and leading to baccalaureate and other recognized degrees. 8ubtitle B—Coordination and Planning of Agricultural Research, Extension, and Teaching RESPONSIBILITIES OF T H E SECRETARY AND DEPARTMENT OF AGRICULTURE SEC. 1405. The Department of Agriculture is designated as the lead 7 use 3121. agency of the Federal Government for agricultural research (except with respect to the biomedical aspects of human nutrition concerned with diagnosis or treatment of disease), extension, and teaching in the food and agricultural sciences, and the Secretary, in carrying out the Secretary's responsibilities, shall— (1) establish jointly with the Secretary of Health, Education, and Welfare procedures for coordination with respect to nutri- tion research in areas of mutual interest; (2) keep informed of developments in, and the Nation's need for, research, extension, teaching, and manpower development in the food and agricultural sciences and represent such need in deliberations within the Department of Agriculture, elsewhere within the executive branch of the United States Government, and with the several States and their desi^ated land-grant col- leges and universities, other colleges and universities, agricultural and related industries, and other interested institutions and groups; (3) coordinate all agricultural research, extension, and teaching activity conducted or financed by the Department of Agriculture and, to the maximum extent practicable, by other agencies of the executive branch of the United States Government; (4) take the initiative in establishing coordination of State- State-Federal Federal cooperative agricultural research, extension, and teach- agricultural ing programs, funded in whole or in part by the Department of programs, Agriculture in each State, through the administrative heads of coordination. land-grant colleges and universities and the State directors of agricultural experiment stations and cooperative extension serv- ices, and other appropriate program administratoi-s; (5) consult the Joint Council, Advisory Board, and other appropriate advisory committees of the Department of Agri- culture in the formulation of basic policies, goals, strategies, and priorities for programs of agricultural research, extension, and teaching; (6) report (as a part of the Department of Agriculture's Report to annual budget submissions) to the House Committee on Agricul- congressional ture, the House Committee on Appropriations, the Senate Com- committees. mittee on Agriculture, Nutrition, and Forestry, and the Senate Committee on Appropriations actions taken to support the recommendations of the Advisory Board; (7) establish appropriate review procedures to assure that agri- Research projects cultural research projects are timely and properly reported and review published and that there is no unnecessary duplication of effort procedures. or overlapping between agricultural research units; (8) establish Federal or cooperative multidisciplinary research Multidisciplinary t^ams on major agricultural research problems with clearly research teams, defined leadership, budget responsibility, and research programs; establishment. and
91 STAT. 986 PUBLIC LAW 95-113—SEPT. 29, 1977 (9) in order to promote the coordination of agricultural research of the Department of Agriculture, conduct a continuing inventory of ongoing and completed research projects being conducted within or funded by the Department. FEDERAI. SUBCOMMITTEE ON FOOD AND RENEWABLE RESOURCES SEC. 1406. Section 401(h) of the National Science and Technology Policy, Organization, and Priorities Act of 1976 (90 Stat. 471; 42 U.S.C. 6651(h)) is amended by adding at the end thereof the follow- ing : "Among such standing subcommittees and panels of the Council shall be the Subcommittee on Food and Renewable Resources. This subcommittee shall review Federal research and development pro- grams relevant to domestic and world food and fiber production and distribution, promote planning and coordination of this research in the Federal Government, and recommend policies and other measures concerning the food and agricultural sciences for the consideration of the Council. The subcommittee shall include, but not be limited to, representatives of each of the following departments or agencies; the Department of Agriculture, the Department of State, the Depart- ment of Defense, the Department of the Interior, the Department of Health, Education, and Welfare, the National Oceanic and Atmos- pheric Administration, the Energy Research and Development Admin- istration, the National Science Foundation, the Environmental Protection Agency, and the Tennessee Valley Authority. The prin- cipal representatives of the Department of Agriculture shall serve as the chairman of the subcommittee." J O I N T COUNCIL ON FOOD AND AGRICULTURAL SCIENCES Establishment. SEC. 1407. (a) The Secretary shall establish within the Department 7 use 3122. of Agriculture a committee to be known as the Joint Council on Food and Agricultural Sciences which shall have a term of five years. Membership. (b) The Joint Council shall be composed of representatives from the Department of Agriculture and those of its agencies with sig- nificant research and extension responsibilites, the Office of Science and Technology Policy, the land-grant colleges and universities. State agricultural experiment stations. State cooperative extension services, and those colleges and universities, other public and private institu- tions, producers, and representatives of the public who are interested in and have a potential to contribute, as determined by the Secretary, to the formulation of national policy in the food and agricultural sciences. The Joint Council shall be jointly chaired by the Assistant Secretary of Agriculture responsible for research, extension, and teaching, and a person to be elected from among the non-Federal membership of the Joint Council. (c) The Joint Council shall meet at least once during each three- month period. At least one meeting each year shall be a combined meeting with the Advisory Board. Responsibilities. (d) (1) The primary responsibility of the Joint Council shall be to foster coordination of the agricultural research, extension, and teaching activities of the Federal Government, the States, colleges and universities, and other public and private institutions and persons involved in the food and agricultural sciences. (2) The Joint Council's responsibilities shall also be to—
PUBLIC LAW 95-113—SEPT. 29, 1977 91 STAT. 987 (A) provide a forum for the interchange of information among the organizations represented by the members of the Joint Coun- cil that will assure improved awareness among these organizations concerning the agricultural research, extension, and teaching pro- grams, results, and directions of each organization; (B) analyze and evaluate the economic, environmental, and social impacts of agricultural research, extension, and teaching programs conducted in the United States and determine high priority agricultural research areas, and submit annual reports identifying such high priority research areas to the Secretary; (C) develop and review the effectiveness of a system, for use by the Secretary, of compiling, maintaining, and disseminating information about each federally supported agricultural research or extension project and, to the maximum extent possible, information about private agricultural research and extension projects conducted by colleges and universities, foundations, con- tract research groups, businesses, and others. Information about private agricultural research and extension projects shall not be included in this system unless they are partially or entirely funded by the Federal Government or the organizations sponsor- ing the projects agree to the inclusion of information about such projects; (D) assist the parties in developing, reviewing, and evaluat- ing memoranda of understanding or other documents that detail the terms and conditions between the Secretary and the par- ticipants in agricultural research, extension, and teaching pro- grams under this Act and other Acts; (E) assist the Secretary in carrying out the responsibilities assigned to the Secretary under this title t h r o u ^ planning and coordination efforts in the food and agricultural sciences that utilize an effective system of regional and national planning, and by the development of recommendations and reports describing current and long-range needs, priorities, and goals in the food and agricultural sciences and means to achieve these goals; (F) develop, and review the effectiveness of, guidelines for use Grants, development and by the Secretary in making competitive grants under sec- review of tion 2(b) of the Act of August 4, 1965 (79 Stat. 431; 7 U.S.C. guidelines. 450i), as amended by section 1414 of this title; and (G) prepare and submit to the Secretary, not later than Report to December 31 of each year, a statement of recommendations Secretary of Agriculture. which shall include— (i) the Joint Council's recommendations as to unified national, regional, or interstate agricultural research, exten- sion, or teaching programs to be implemented during the following fiscal year, delineating suggested areas of respon- sibility for Federal and State agencies in carrying out such programs, and the overall planning, evaluation, coordination, and support necessary for such programs, and (ii) a summary of agricultural research, extension, and teaching achievements made during, and the status of ongo- ing projects as of the end of, the prior fiscal year, with respect to the programs conducted W the organizations represented hj the members of the Joint Cfouncil. Minority views, if timely submitted, shall be included in the submission. The Secretary shall submit copies of the statement to the Subcommittee on Food and Renewable Resources of the Federal Coordinating Council for Science, Engineering, and Technology, and the Advisory Board.
91 STAT. 988 PUBLIC LAW 95-113—SEPT. 29, 1977 NATIONAL AGRICULTURAL RESEARCH AND EXTENSION USERS ADVISORY BOARD Establishment. SEC. 1408. (a) The Secretary shall establish within the Department 7 use 3123. of Agriculture a board to be known as the National Agricultural Research and Extension Users Advisory Board which shall have a term of five years. Membership. (b) The Advisory Board shall be composed of the following twenty-one members to be appointed by the Secretary— (1) four members representing producers of agricultural com- modities, forest products, and aquacultural products, (2) four members representing consumer interests, (3) two members representing farm suppliers and food and fiber processors, (4) two members representing food marketing interests, (5) two members representing environmental interests, (6) one member engaged in rural development work, (7) two members engaged in human nutrition work, (8) one member representing animal health interests, (9) one member engaged in transportation of food and agri- cultural products to domestic or foreign markets, (10) one member representing labor organizations primarily concerned with the production, processing, distribution, or trans- portation of food and agricultural products, and (11) one member representing private sector organizations involved in development programs and issues in developing countries. Chairman; vice- (c) The Advisory Board shall select a chairman and vice-chairman chairman. from its membership, at its first meeting each year, who shall serve in those positions for a term of one year. (d) The Advisory Board ^hall meet at least once during each four- month period. At least one meeting each year shall be a combined meeting with the Joint Council. Panels. (e) The Advisory Board is authorized to establish such panels as it deems appropriate to develop information, reports, advice, and recommendations for the use of the Advisory Board in meeting its responsibilities. Members of such panels may include members of the Advisory Board, Advisory Board staff members, individuals from the Department of Agriculture and other departments and agencies of the Federal Government, and individuals from the private sector who have expertise in the subject to be examined by the panel. Responsibilities. (f) (1) The Advisory Board shall have general responsibilitv for preparing independent advisory opinions on the food and agricultural sciences. (2) The Advisory Board shall have the specific responsibilities for— (A) reviewing the policies, plans, and goals of programs within the Department of Agriculture involving the food and afirricul- tural sciences, and related programs in other Federal and State departments and agencies and in the colleges and universities developed by the Secretary under this title; (B) reviewina: and assessing the extent of agricultural research f>'irl extension being conducted by private foundations and busi- nesses, and the relationshios of such research and extension to federally supported agricultural research and extension; (C) reviewing and providing consultation to the Secretary on nationail policies, priorities, and strategies for agricultural research and extension for both the short and long term;
PUBLIC LAW 95-113—SEPT. 29, 1977 91 STAT. 989 (D) assessing the overall adequacy of, and making recom- mendations to the Secretary with regard to, the distribution of resources and the allocation of funds authorized by this title; (E) preparing and submitting to the Secretary, not later than Report to October 31 of each year, a statement of recommendations as to Secretary of Agriculture. allocations of responsibilities and levels of funding among fed- erally supported agricultural research and extension programs, which shall include a review and an assessment of the alloca- tion of funds for agricultural research and extension made for the preceding fiscal year by the organizations represented on the Joint Council. Minority views, if timely submitted, shall be included in the submission. The Secretary shall submit copies of the statement to the Subcommittee on Food and Renewable Resources of the Federal Coordinating Council for Science, Engi- neering, and Technology, and the Joint Council; and (F) not later than March 1 of each year submitting a report Report to on its appraisal of the President's proposed budget for the food President and and agricultural sciences for the fiscal year beginning in such congressional year and the recommendations of the Secretary contained in the committees. annual report submitted by the Secretary pursuant to the provi- sions of section 1410 of this title. Such report shall be submitted to the President, the House Committee on Agriculture, the House Committee on Appropriations, the Senate Committee on Agricul- ture, Nutrition, and Forestry, and the Senate Committee on Appropriations. The report may include the separate views of members of the Advisory Board. The first report shall be due not later than March 1,1979. EXISTING RESEARCH PROGRAMS SEC. 1409. It is the intent of Congress in enacting this title to 7 USC 3124. augment, coordinate, and supplement the planning, initiation, and conduct of agricultural research programs existing prior to the enact- ment of this title, except that it is not the intent of Congress in enacting this title to limit the authority of the 'Secretary of Health, Education, and Welfare under any Act which the Secretary of Health, " Education, and Welfare administers. SECRETARY'S REPORT SEC. 1410. The Secretary shall submit to the President and Con- Report to gress by February 1 of each year a report on the Nation's agricultural President and research, extension, and teaching activities, and such report shall Congress. include— 7 USC 3125. (1) a review covering the following three categories of activi- ties of the Department of Agriculture with respect to agricultural research, extension, and teaching activities and the relationship of these activities to similar activities of other departments and agencies of the Federal Government, the States, colleges and universities, and the private sector— (A) a current inventory of such activities organized by statutory authorization and budget outlay; (B) a current inventorv of such activities organized by . field of basic and applied science; and (C) a current inventory of such activities organized by commodity and product category;
91 STAT. 990 PUBLIC LAW 95-113—SEPT. 29, 1977 (2) the statements of recommendations of the Joint Council developed pursuant to the provisions of section 1407(d) (2) (G) of this title and the statement of recommendations of the Advisory Board developed pursuant to the provisions of section 1408(f) (2)(E) of this title; and (3) in the second and succeeding years, a five-year projection of national priorities with respect to agricultural research, exten- sion, and teaching, taking into account both domestic and inter- national needs. LIBRARIES AND INFORMATION NETWORK 7 use 3126. SEC. 1411. (a) I t is hereby declared to be the policy of Congress that— (1) cooperation and cooordination among, and the more effec- tive utilization of, disparate agricultural libraries and informa- tion units be facilitated; (2) information and library needs related to agricultural research and education be effectively planned for, coordinated, and evaluated; (3) a structure for the coordination of the agricultural libraries of colleges and universities. Department of Agriculture libraries, and their closely allied information gathering and disseminating units be established in close conjunction with private industry and other research libraries; (4) effective access by all colleges and universities and Depart- ment of Agriculture personnel to literature and information regarding the food and agricultural sciences be provided; and (5) programs for t r a i n i n g in information utilization with respect to the food and agricultural sciences, including research grants for librarians, information scientists, and agricultural scientists be established or strengthened. Food and (b) There is hereby established within the National Agricultural Nutrition L i b r a r y of the Department of Agriculture a Food and Nutrition Information and Information and Education Resources Center. Such Center shall be Education responsible for— esou^rces ^.j^^ assembling and collecting food and nutrition education Establishment. materials, including the results of nutrition research, t r a i n i n g methods, procedures, and other materials related to the purpose of this t i t l e ; (2) maintaining such information and materials in a library; and (3) providing for the dissemination of such information and materials on a regular basis to State educational agencies and other interested persons. Appropriation (c) Funds are hereby authorized to be appropriated annually in authorization. gu(>]^ amounts as Congress may determine necessary to support the Contract purposes of this section. The Secretary is authorized to carry out this authority. section with existing facilities through the use of grants, contracts, or such other means as the Secretary deems appropriate and to require matching of funds. No funds appropriated to support the purposes of this section shall be used to purchase additional equipment unless specifically authorized by law subsequent to the date of enactment of this title.
PUBLIC LAW 95-113—SEPT. 29, 1977 91 STAT. 991 SUPPORT FOR T H E J O I N T COUNCIL AND ADVISORY BOARD SEC. 1412. (a) To assist the Joint Council and Advisory Board in 7 USC 3127. the performance of their duties, the Secretary is authorized to appoint— (1) not to exceed five full-time professional staff employees qualified in the food and agricultural sciences, and (2) an executive director for such staff who shall perform such duties as the chairmen of the Joint Council and the chairman of the Advisory Board may direct, and who shall receive compen- sation at a rate not in excess of the rate for GS-18 in the General Schedule set out in section 5332 of title 5 of the United States Code. (b) The Secretary shall provide such additional clerical assistance and staflf personnel as may be required to assist the Joint Council and Advisory Board in carrying out their duties. (c) In formulating their recommendations to the Secretary, the Joint Council and Advisory Board may obtain the assistance of Department of Agriculture employees, and, to the maximum extent practicable, the assistance of employees of other Federal departments and agencies conducting related programs of agricultural research, extension, and teaching and of appropriate representatives of colleges and universities, including State agricultural experiment stations, cooperative extension services, and other non-Federal organizations conducting significant programs in the food and agricultural sciences. GENERAL PROVISIONS SEC. 1413. (a) Any vacancy in the Joint Council or the Advisory Vacancies. Board shall not affect their powers under this title and shall be filled 7 USC 3128. in the same manner as the original position. (b) Members of the Joint Council and Advisory Board shall serve Travel expenses, without compensation, if not otherwise officers or employees of the Unit«d States, except that they shall, while away from their homes or regular places of business in the performance of services under this title, be allowed travel expenses, including per diem in lieu of sub- sistence, in the same manner as persons employed intermittently in the Government service are allowed expenses under sections 5701 through 5707 of title 5 of the United States Code. Subtitle C—Agricultural Kesearch and Education Grants and Fellowships PROGRAM OF COMPETITIVE, SPECIAL, AND FACILITIES GRANTS FOR AGRICULTURAL RESEARCH S E C 1414. Section 2 of the Act of August 4, 1965 (79 Stat. 431; 7 U.S.C. 450i), is amended to read as follows: " S E C 2. (a) In order to promote research in food, agriculture, and related areas, a research grants program is hereby established in the Department of Agriculture. "(b) The Secretary of Agriculture is authorized to make competitive Grants, grants, for periods not to exceied fivie years, to State agricultural experiment stations, all colleges and universities, other research institutions and organizations. Federal agencies, private organizations or corporations, and individuals, for research to further the programs of the Department of Agriculture. To the greatest extent possible the Secretary shall allocatti these grants to high priority research taking 2-9-19H 0
91 STAT. 992 PUBLIC LAW 95-113—SEPT. 29, 1977 into consideration, when available, the determinations made by the Joint Council on Food and Agricultural Sciences identifying high priority research areas. In seeking research proposals and in perform- ing peer review evaluations of such proposals under this subsection, the Secretary shall seek the widest participation of qualified scientists in the Federal Government, all colleges and universities, State agricul- tural experiment stations, and the private sector. The research grants shall be made without vregard to matching funds by the recipient or Appropriation recipients of such grants. There are hereby authorized to be appro- authorization. priated for the purpose of carrying out the provisions of this subsec- tion, $25,000,000 for the fiscal vear ending September 30, 1978, $30,000,000 for the fiscal year ending September 30, 1979, $35,000,000 for the fiscal year ending September 30,1980, $40,000,000 for the fiscal year ending September 30, 1981, and $50,000,000 for the fiscal year ending September 30,1982, and not in excess of such sums as may after the date of enactment of the Food and Agriculture Act of 1977 be authorized by law for any subsequent fiscal year. Food and "(c) The Secretary of Agriculture is authorized to make grants, for agricultural periods not to exceed five years in duration— research grants. "(1) to land-grant colleges and universities, State agricultural experiment stations, and to all colleges and universities having a demonstrable capacity in food and agricultural research, as de- termined by the Secretary, to carry out research to facilitate or expand promising breakthroughs in areas of the food and agricul- tural sciences of importance to the Nation; and "(2) to land-grant colleges and universities and State agricul- tural experiment stations, to facilitate or expand on-going State- Federal food and agricultural research programs that (A) promote excellence in research, (B) promote the development of regional research centers, or (C) promote the research partner- ship between the Department of Agriculture and such colleges and universities or State agricultural experiment stations. These grants shall be made without regard to matching funds. Annual grants. "(d) The Secretary of Agriculture shall make annual grants to support the purchase of equipment, supplies, and land, and the con- struction, alteration, or renovation of buildings, necessary for the conduct of food and agricultural research, to— "(1) each State agricultural experiment station in an amount of $100,000 or an amount which is equal to 10 per centum of the funds received by such station under the Act of March 2, 1887 (24 Stat. 440^M:2, as amended; 7 U.S.C. 361a-361i), and the Act of October 10,1962 (76 Stat. 806-807, as amended; 16 U.S.C. 582a, 582a-l—582a-7), whichever is greater: Provided^ That of any amount in excess of $50,000 made available under this paragraph during any year for allotment to a State agricultural experiment station, no payment thereof shall be made in excess of the amount which the station makes available during that year for the pur-t poses for which grants under this paragraph are made available; and "(2) each accredited college of veterinary medicine and State agricultural experiment station which receives funds from the Federal Government for animal health research, in an amount which is equal to 10 per centum of the animal health research funds received by such college or experiment station from the Federal Government during the previous fiscal year. Deferred grants. Any college or State agricultural experiment station eligible for annual grants under this subsection may elect to defer the receipt of an annual grant for any fiscal year for up to five years: Provided, That
PUBLIC LAW 95-113—SEPT. 29, 1977 91 STAT. 993 the total amounts deferred may not exceed $1,000,000. Application may be made for receipt of deferred grants at any time during the five years, subject to the matching funds requirement of this subsection and the availability of appropriations under this subsection. "(e) Each recipient of assistance under this section shall keep such Recordkeeping, records as the Secretary of Agriculture shall, by regulation, prescribe, including records which fully disclose the amount and disposition by such recipient of the proceeds of such grants, the total cost of the project or undertaking in connection with which such funds are given or used, and the amount of that portion of the costs of the project or undertaking supplied by other sources, and such other records as will facilitate an effective audit. The Secretary of Agriculture and the Audit. Comptroller General of the United States or any of their duly author- ized representatives shall have access for the purpose of audit and examination to any books, documents, papers, and records of the recipients that are pertinent to the grants received under this section. "(f) The Secretary of Agriculture shall limit allowable overhead costs, with respect to grants awarded under this section, to those nec- essary to carry out the purposes of the grants. "(g) Except as otherwise provided in subsection (b) of this section, Appropriation there are hereby authorized to be appropriated such sums as are nec- authorization. essary to carry out the provisions of this section. "(h) The Secretary of Agriculture is authorized to issue such Rules and rules and regulations as the Secretary deems necessary to carry out regulations. the provisions of this section.". GRANTS TO ESTABLISH OR EXPAND SCHOOLS OF VETERINARY MEDICINE SEC. 1415. (a) The Secretary shall conduct a program of grants to 7 USC 3151. States for the purpose of meeting the costs of construction, employ- ing faculty, acquiring equipment, and taking other action relating to the initial establishment and initial operation of schools of veterinary medicine, or the expansion of existing schools of veterinary medicine, as determned by the Secretary by regulations. This grant program shall be based on a matching formula of 50 per centum Federal and 50 per centum State funding. (b) Except with respect to the States of Alaska and Hawaii, the Grant preference Secretary shall give preference in awarding grants to States which file, with their application for funds under this section, assurances satisfactory to the Secretary that— (1) the State has established, or has made a reasonable effort * to establish, a veterinary medical training program with one or more States without colleges of veterinary medicine which con- sists of appropriate cooperative agreements providing for a sharing of curriculum and costs by the individual States; and (2) the clinical training of the school to be established or expanded shall emphasize care and preventive medical programs for food-producing animals. Notwithstanding clause (1) of this subsection, no State which the Secretary determines has made a reasonable effort to establish appro- priate cooperative agreements shall be denied a grant or otherwise prejudiced because of its failure to establish such cooperative : ' agreements. (c) Funds appropriated to carry out this section for any fiseal^ear Funds, shall be apportioned and distributed as follows: apportionment. (1) Four per centum shall be retained by the Department of Agriculture for administration, program assistance to eligible States, and program coordination.
91 STAT. 994 PUBLIC LAW 95-113—SEPT. 29, 1977 (2) The remainder Shall be apportioned and distributed by the Secretary to those States which have applied for funds under this section on such basis as the Secretary may deem appropriate: Provided, That not less than 50 per centum of such funds shall be made available to States which have accredited schools of veterinary medicine. AMENDMENTS TO T H E RESEARCH FACILITIES ACT OF 19 6 3 SEC. 1416. The Act of July 22, 1963 (77 Stat. 90-92, as amended; 7 U.S.C. 390,390a-390k), is amended by— "Eligible (1) amending paragraph (2) of section 3 to read as follows: institution." "(2) the term 'eligible institution' means a department estab- 7 use 390b. lished under provisions of the Act of March 2, 1887 (24 Stat. 440-442, as amended; 7 U.S.C. 361a-361i), and under the direc- tion of a college or university established in any State in accordance with the Act of July 2, 1862 (12 Stat. 503-505, as amended; 7 U.S.C. 301-305, 307'and 308), a department other- wise established pursuant to standards prescribed by any State the purpose of which is to conduct agricultural research, the Connecticut Agricultural Experiment Station at New Haven, Connecticut, the Ohio Agricultural Experiment Station at Wooster, Ohio, and those colleges, universities, and other legal entities in each State now receiving, or which may hereafter receive, benefits under the Act of August 30, 1890 (26 Stat. 417- 419, as amended; 7 U.S.C. 321-326 and 328), including the Tuskegee Institute, or the Act of October 10, 1962 (76 Stat. 806-807, as amended; 16 U.S.C. 582a-582a^l-582a-7); and"; (2) striking out sections 4 through 12 and inserting in lieu thereof the following new sections: Appropriation "SEC. 4. (a) There are hereby authorized to be appropriated for authorizations. allocation to eligible institutions under this Act to be used for the 7 u s e 390c. purpose set out in section 2 of this Act, $15,000,000 for the fiscal year ending September 30, 1978, $19,000,000 for the fiscal year ending September 30, 1979, $23,000,000 for the fiscal year ending Septem- ber 30, 1980, $27,000,000 for the fiscal year ending September 30,1981, and $31,000,000 for the fiscal year ending September 30,1982, and not in excess of such sums as may after the date of enactment of the Food and Agriculture Act of 1977 be authorized by law for any subsequent fiscal year. Funds, " (b) (1) The first $4,000,000 appropriated for research facilities pur- apportionment. suant to this section for any fiscal year shall be apportioned equally among eligible institutions. "(2) Any amount in excess of $4,000,000 appropriated under this section for any fiscal year shall be apportioned as follows: Each eli- gible institution shall be entitled to an amount which bears the same ratio to the total amount of funds being allocated in such fiscal year under this paragraph as the amount received by such institution in the preceding fiscal year bears to the total amount received by all eligible institutions in such preceding fiscal year. The amount received by eligible institutions in the preceding fiscal year shall be determined on Post, p. 1018. the basis of funds received under section 3 of the Act of March 2,1887, 16 u s e 582a-2. section 3 of the Act of October 10, 1962, and—with respect to institu- 7 use tions receiving benefits under the Act of August 30, 1890, including 321-326a, Tuskegee Institute—on the basis of funds received under section 2 of 328. the Act of August 4, 1965 (79 Stat. 431; 7 U.S.C. 450i), during the fiscal years ending September 30, 1977, and September 30, 1978, and
PUBLIC LAW 95-113—SEPT. 29, 1977 91 STAT. 995 on the basis of funds received under section 1445 of the Food and Agriculture Act of 1977 in subsequent years. "(c) It shall be the duty and responsibility of the Secretary to Rules and regula- administer the provisions of this Act under such rules and regulations tions. as the Secretary may prescribe as necessary therefor. "SEC. 5. As a condition for receiving funds apportioned under section Planning 4 of this Act, each eligible institution shall submit, in such form as the proposals. Secretary may require, specific proposals for planning, acquisition, 7 u s e 390d. construction, repair, rehabilitation, renovation, or remodeling of build- Ante, p. 994. ings, laboratories, and other capital facilities including the acquisition of fixtures and equipment, including scientific instrumentation, which are to become part of such buildings. In a State having more than one eligible institution the Secretary shall devise procedures to insure that the facility proposals of the eligible institutions in such State provide for a coordinated food and agricultural research program among eli- gible institutions in such State. "SEC. 6. Any unused portion of the allotment to any eligible institu- 7 u s e 390e. tion for any fiscal year shall remain available at the option of such institution for payment to such institution for a period of not more than five fiscal years following the fiscal year in which such allotment is first made available. "SEC. 7. With respect to multiple-purpose physical facilities, the Multiple-purpose segment or portion thereof which is to be utilized for food and agri- physical cultural research shall be the basis for determination of fund support facilities. under this Act. 7 u s e 390f. "SEC. 8. For each fiscal year that funds are made available for allo- Funds, cation the Secretary shall ascertain, at the earliest practicable date apportionment. during such year, the amount of the allocation to which each eligible 7 u s e 390g. institution is entitled and shall notify each such institution in writing promptly thereafter as to the amount of such allocation. "SEC. 9. (a) Any eligible institution authorized to receive payments Chief under the provisions of section 4 of this Act shall have a chief adminis- administrative trative officer and a duly designated fiscal officer, who shall be the per- officer and fiscal sons responsible for receipt of payments under the Acts referred to in officer. 7 u s e 390h. section 4(b) of this Act, to whom payments can be directed by the Secretary. Such fiscal officer shall receive and account for all funds Report to paid to such institution pursuant to the provisions of this Act, and Secretary of shall submit a report, approved by the chief administrative officer of Agriculture. such institution, to the Secretary on or before the first day of Decem- ber of each year. Such report shall contain a detailed statement of the amount received under the provisions of this Act during the pre- ceding fiscal year, and of its disbursements on schedules prescribed by the Secretary. "(b) If any portion of the allotted funds received by the duly Lost or authorized fiscal officer of any eligible institution shall by any action misapplied or contingency be diminished, lost, or misapplied, it shall be repaid funds. by the institution concerned, and until repaid no part of any subse- quent appropriation shall be allocated or paid to such institution. "SEC. 10. The Secretary shall make an annual report to Congress Report to during the first regular session of each year with respect to (1) pay- eongress. ments made under this Act, (2) the facilities, by institution, for which 7 u s e 390i. such payments were made, and (3) whether any portion of the appro- priation available for allotment to any of the eligible institutions has been withheld and, if so, the reasons therefor. "SEC. 11. Three per centum of funds appropriated under this Act 7 u s e 390j. shall be available to the Secretary for administration of this Act."; and
91 STAT. 996 PUBLIC LAW 95-113—SEPT. 29, 1977 7 use 390,390a. (3) striking out "the State agricultural experiment stations" eaeh. time it occurs in the title, section 1, and section 2 and insert- :,; ing in lieu thereof "eli^ble institutions", and striking out "on a matching basis," in section 1. GRANTS AND FELLOWSHIPS FOR FOOD AND AGRICULTURAL SCIENCES EDUCATION 7 use 3152. SEC. 1417. (a) The Secretary shall conduct a program of competitive grants for all colleges and universities for the purpose of furthering education in the food and agricultural sciences. These grants shall be made in the following two categories: Graduate and \\y -Grants to strengthen programs of training and research in postdoctoral the food and agricultural sciences for scientists at the graduate research and and postdoctoral levels at all colleges and universities. Grants in training grants. this category may be used for exploratory research by such scien- -tists, the acquisition of instruments, equipment, and facilities for research and training and other programs and activities aimed at meeting departmental, interdepartmental, or institutionwide training and research needs, or a combination thereof. Grants shall be made on a competitive basis and may cover periods not to exceed four years. Competition for such grants shall be open to all colleges and universities in the United States which have a capac- ity for teaching, research, and the dissemination of research results in the food and agricultural sciences or which are estab- lishing such programs. Undergraduate (2) Grants to strengthen undergraduate programs in the food program grants. and agricultural sciences at all colleges and universities. Grants in this category may be used to support programs designed to improve such undergraduate programs through traditional or non-traditional courses, curriculums, or teaching modes. Grants shall be made on a competitive basis and may cover periods not to exceed two years. Competition for such grants shall be open to all colleges and universities or to groups of such institutions which individually or collectively have a capacity for teaching, research, and the dissemination of research results in the food and agricul- tural sciences or which are establishing such programs, Predoctoral and (b) The Secretary shall conduct a program of predoctoral and post- postdoctoral doctoral fellowships in the food and agricultural sciences. These fellowships. fellowships shall be made in the following two categories: (1) Predoctoral fellowships, each for a period of up to four years. The purpose of these fellowships shall be to provide training and increase research capabilities in areas of need as identified by each Fellowship State. These fellowships shall be awarded on the basis of merit, as review panels. determined by review panels established annually by the Secretary, to graduate students from each of the States, if the following criteria are satisfied: (A) the student is enrolled in a graduate degree program in a college or university; and (B) the student intends to pursue or is pursuing a course of study in the food and agricultural sciences which is directly related to an area of need as identified by the Governor or chief executive officer of the State. At least three such fellowships shall be awarded to students from each State in every year. (2) Postdoctoral fellowships, each for a period of from one to five years. The purpose of these fellowships shall be to attract highly
PUBLIC LAW 95-113—SEPT. 29, 1977 91 STAT. 997 promising investigatoi-s to research careers in the basic sciences related to agriculture and to provide stipends and research support for their training and establishment as independent investigators. In making awards under this paragraph, the Secretary shall give priority to individuals doing basic research at colleges and universities. (c) Funds authorized in section 22 of the Act of June 29, 1935 (49 Funds, transfer. Stat. 439, as amended; 7 U.S.C. 329), are transferred to and shall be administered by the Secretary of Agriculture. (d) There are hereby authorized to be appropriated for the pur- Appropriation poses of carrying out the provisions of this section $25,000,000 for the authorization. fiscal year ending September 30, 1978, $30,000,000 for the fiscal year ending September 30, 1979, $35,000,000 for the fiscal year ending September 30, 1980, $40,000,000 for the fiscal year ending September 30,1981, and $50,000,000 for the fiscal year ending September 30,1982, and not in excess of such sums as may after the date of enactment of this title be authorized by law for any subsequent fiscal year. NATIONAL AGRICULTURAL, RESEARCH AWARD SEC. 1418. (a) The Secretary shall establish the National Agricul- Establishment. tural Research Award for research or advanced studies in the food 7 use 3153. and agricultural sciences. Two such awards, one for each of the cate- gories described in subsection (c) of this section, shall be made in each fiscal year. (b) The awards shall not exceed $50,000 per year for a period of not to exceed three years to support research or study by the recipient. (c) Awards under this section shall be made in each fiscal year in two categories as follows: (1) to a scientist in recognition of outstanding contributions to the advancement of the food and agricultural sciences; and (2) to a research scientist in early career development or a grad- uate student, in recognition of demonstrated capability and prom- ise of significant future achievement in the food and agricultural sciences. (d) The Secretary may establish such nominating and selection Nominating and committees, to consist of scientists and others, to receive nominations selection and make recommendations for awards under this section, as the committees. Secretary deems appropriate. GRANTS FOR RESEARCH ON T H E PRODUCTION AND MARKETING OF ALCO- HOLS AND INDUSTRIAL HYDROCARBONS FROM AGRICULTURAL COMMODI- TIES AND FOREST PRODUCTS, AND AGRICULTURAL CHEMICALS AND OTHER PRODUCTS FROM COAL DERIVATIVES SEC. 1419. The Secretary shall make grants under this section to 7 USC 3154. colleges and universities for the purpose of conducting research related to the production and marketing of (1) coal tar, producer gas, and other coal derivatives for the manufacture of agricultural chemi- cals, methanol, methyl fuel, and alcohol-blended motor fuel (such agricultural chemicals to include, but not be limited to, fertilizers, herbicides, insecticides, and pesticides), (2) alcohol made from agri- cultural commodities and forest products as a substitute for alcohol made from petroleum products, and (3) other industrial hydrocarbons made from agricultural commodities and forest products. There are Appropriation hereby authorized to be appropriated for the purposes of carrying out authorization.
91 STAT. 998 PUBLIC LAW 95-113—SEPT. 29, 1977 the provision of this section, $3,000,000 for the fiscal year ending Sep- tember 30, 1978, and such sums as may be necessary for the four subsequent fiscal years ending September 30,1979, September 30,1980, September 30,1981, and September 30,1982: Provided, That the total amount of such appropriations shall not exceed $24,000,000 during the five-year period beginning October 1, 1977, and ending September 30, 1982, and not in excess of such sums as may after the date of enact- ment of this title be authorized by law for any subsequent fiscal year: Provided further, That not more than a total of $3,000,000 may be awarded to the colleges and universities of any one State. PILOT PROJECTS FOR T H E PRODUCTION AND MARKETING OF INDUSTRIAL HYDROCARBONS AND ALCOHOLS FROM AGRICULTURAL COMMODITIES AND FOREST PRODUCTS 7 use 2669. S E C 1420. Title V of the Rural Development Act of 1972 (86 Stat. 671-674, as amended; 7 U.S.C. 2661-2668) is amended by adding at the end thereof a new section as follows: "SEC. 509. (a) The Secretary is authorized and directed to formu- late and carry out a pilot program for the production and marketing of industrial hydrocarbons derived from agricultural commodities and forest products for the purpose of stabilizing and expanding the market for such commodities and products and expanding the Nation's supply of industrial hydrocarbons. Guaranteed "(b) The Secretary shall provide for four pilot projects for the loans. production of industrial hydrocarbons and alcohols from agricultural commodities and forest products by guaranteeing loans, not to exceed $15,000,000 per each such project, to public, private, or cooperative organizations organized for profit or nonprofit, or to individuals for a term not to exceed twenty years at a rate of interest agreed upon by the borrower and lender. "(c) No loan may be guaranteed under this section unless (1) research indicates the total energy content of the products and byprod- ucts to be manufactured by the loan applicant will exceed the total energy input from fossil fuels used in the manufacture of such prod- ucts and byproducts, and (2) such other conditions as the Secretary- deems appropriate to achieve the purposes of this section are met. Contract "(d) In order to assure that the recipients of loans made under this authority. section have a dependable supply of agricultural commodities at a stable price for use in the pilot projects provided for in this section, the Secretary is authorized to enter into long-term contracts, not exceeding five years, with the recipients of such loans. Such contracts shall guarantee the recipients of such loans a specified quantity of agricultural commodities annually at mutually agreed upon prices, but the agricultural commodities shall not be sold under any such contracts at less than the price support level prescribed for the commodity con- cerned unless the commodities are out of condition, unstorable, or sample-grade or lower, as prescribed in Department of Agriculture standards. "(e) The Secretary shall supply from Commodity Credit Corpora- tion stocks or, to such extent or in such amounts as are provided in appropriation Acts, purchase such quantities of agricultural com- modities as may be necessary to comply with the terms of agreements entered into under this section. "(f) The provisions of this section shall be carried out through the Commodity Credit Corporation.".
PUBLIC LAW 95-113—SEPT. 29, 1977 91 STAT. 999 Subtitle D—National Food and Human Nutrition Research and Extension Program FINDINGS AND DECLARATIONS SEC. 1421. (a) Congress hereby finds that there is increasing evi- 7 USC 3171. dence of a relationship between diet and many of the leading causes of death in the United States: that improved nutrition is an integral component of preventive health care; that there is a serious need for research on the chronic effects of diet on degenerative diseases and related disorders; that nutrition and health considerations are impor- tant to United States agricultural policy; that there is insufficient knowledge concerning precise human nutritional requirements, the interaction of the various nutritional constituents of food, and differ- ences in nutritional requirements among different population groups such as infants, children, adolescents, elderly men and women, and pregnant women; and that there is a critical need for objective data concerning food safety, the potential of food enrichment, and means to encourage better nutritional practices. (b) It is hereby declared to be the policy of the United States that the Department of Agriculture conduct research in ihe fields of human nutrition and the nutritive value of foods and conduct human nutrition education activities, as provided in this subtitle. DUTIES OF T H E SECRETARY OF AGRICULTURE SEC. 1422. In order to carry out the policy of this subtitle, the Secre- 7 USC 3172. tary shall develop and implement a national food and human nutrition research and extension program that shall include, but not be limited to— (1) research on human nutritional requirements; (2) research on the nutrient composition of foods and the effects of agricultural practices, handling, food processing, and cooking on the nutrients they contain; (3) surveillance of the nutritional benefits provided to partici- pants in the food programs administered by the Department of Agriculture; (4) research on the factors affecting food preference and habits; and (5) the development of techniques and equipment to assist consumers in the home or in institutions in selecting food that , supplies a nutritionally adequate diet. RESEARCH BY T H E DEPARTMENT OF AGRICULTURE SEC. 1423. (a) The Secretary shall establish research into food and 7 USC 3173. human nutrition as a separate and distinct mission of the Department of Agriculture, and the Secretary shall increase support for such research to a level that provides resources adequate to meet the policy of this subtitle. (b) The Secretary, in administering the food and human nutrition research program, shall periodically consult with the administrators of the other Federal departments and agencies that have responsibility ,. for programs dealing with human food and nutrition, as to the specific research needs of those departments and agencies.
91 STAT. 1000 PUBLIC LAW 95-113—SEPT. 29, 1977 STUDY Regional food SEC. 1424. The Secretary shall perform a study assessing the poten- and human tial value and cost of establishing regional food and human nutrition nutrition research research centers in the United States. This assessment shall examine centers. 7 use 3174. the feasibility of using existing Federal facilities in establishing such Report to centers. The Secretary shall complete this study and submit a report Congress. setting forth the findings of the study and recommendations for the implementation of these findings, as a part of the plan the Secretary is required to submit to Congress pursuant to section 1427 of this title, not later than one year after the effective date of this title. NUTRITION EDUCATION PROGRAM Establishnient. SEC. 1425. (a) The Secretary shall establish a national education 7 use 3175. program which shall include, but not be limited to, the dissemination of the results of food and human nutrition research performed or funded by the Department of Agriculture. (b) In order to enable low-income individuals and families to engage in nutritionally sound food purchasing and preparation practices, the expanded food and nutrition education program presently conducted under section 3(d) of the Act of May 8,1914 (38 Stat, 373, as amended; 7 TJ.S.C. 343(d)), shall be expanded to provide for the employment and training of professional and paraprofessional aides to engage in direct nutrition education of low-income families and in other appro- priate nutrition education programs. Funds for carrying out the pro- visions of this subsection shall be allocated to each State in an amount which bears the same ratio to the total amount to be allocated as the population of the State living at or below 125 per centum of the income poverty guidelines prescribed by the Office of Management and Budget (adjusted pursuant to section 625 of the Economic Opportunity Act of 1964 (86 Stat. 697, as amended; 42 U.S.C. 297ld)), bears to the total population of all the States living at or below 125 per centum of the income poverty guidelines, as determined by the last preceding decennial census at the time each such sum is first appropriated. To the maximum extent practicable, program aides shall be hired from the indigenous target population. The provisions of this subsection shall not preclude the Secretary from developing educational materials and programs for persons in income ranges above the level designated in this subsection. NUTRITION EDUCATION MATERIALS Elementary and SEC. 1426. In order to encourage nutrition education programs in secondary school the classrooms and lunchrooms of elementary and secondary schools, programs. the Secretary shall, in consultation with appropriate officers in the 7 u s e 3176. Department of Health, Education, and Welfare, develop and distribute to State departments of education a comprehensive set of educational materials on food and nutrition education which shall be appropriate for all levels of the elementary and secondary education system. REPORT TO CONGRESS 7 u s e 3177. SEC. 1427. The Secretary shall submit a comprehensive plan for implementing the national food and human nutrition research and extension program provided for by this subtitle to Congress within one year after the effective date of this title. The plan shall include, but not be limited to, recommendations relating to research direction,
PUBLIC LAW 95-113—SEPT. 29, 1977 91 STAT. 1001 funding levels, needed facilities grants, and use of Federal facilities in cooperation with States and others, necessary to achieve the policy set forth in section 1421 of this title. NUTRITIONAL STATUS MONITORING SEC. 1428. (a) The Secretary and the Secretary of Health, Educa- Report to tion, and Welfare shall formulate and submit to Congress, within Congress, ninety days after the date of enactment of this title, a proposal for a 7 USC 3178. comprehensive nutritional status monitoring system, to include: (1) an assessment system consisting of periodic surveys and continuous monitoring to determine: the extent of risk of nutri- tion-related health problems in the United States; which popula- tion groups or areas of the country face greatest risk; and the likely causes of risk and changes in the above risk factors over time; (2) a surveillance system to identify remediable nutrition- related health risks to individuals or for local areas, in such a man- ner as to tie detection to direct intervention and treatment. Such system should draw on screening and other information from other health programs, including those funded under titles Y, X V I I I , and X I X of the Social Security Act and section 330 of the 42 USC 701, Public Health Service Act; and 1395, 1396. (3) program evaluations to determine the adequacy, efficiency, 42 USC 254c. effectiveness, and side effects of nutrition-related programs m reducing health risks to individuals and populations, (b) The proposal shall provide for coordination of activities under existing authorities and contain recommendations for any additional authorities necessary to achieve a comprehensive monitoring system. Subtitle E—Animal Health and Disease Research i " ' ' ' ' • • • ^ - ^ ^ ^ ^ ^ ^ PURPOSE SEC. 1429. It is the purpose of this subtitle to promote the general 7 USC 3191. welfare through the improved health and productivity of domestic livestock, poultry, aquatic animals, and other income-producing ani- mals which are essential to the Nation's food supply and the welfare of producers and consumers of animal products; to improve the health of horses; to facilitate the effective treatment of, and, where possible, prevent, animal and poultry diseases in both domesticated and wild animals which, if not controlled, would be disastrous to the United States livestock and poultry industries and endanger the Nation's food supply; to minimize livestock and poultry losses due to transportation and handling; to protect human health through control of animal diseases transmissible to humans; to improve methods of controlling the births of predators and other animals; and otherwise to promote the general welfare through expanded programs of research and exten- sion to improve animal health. It is recognized that the total animal k af health and disease research and extension efforts of the several State colleges and universities and of the Federal Government would be more effective if there were close coordination between such programs, and it is further recognized that colleges and universities having accredited colleges of veterinary medicine or departments of veter- inary sciences or animal pathology, and similar units conducting animal health and disease research in the State agricultural experiment stations, are especially vital in training research workers in animal health.
91 STAT. 1002 PUBLIC LAW 95-113—SEPT. 29, 1977 DEFINITIONS 7 use 3192. SEC. 1430. When used in this subtitle— (1) the term "eligible institution" means any college or uni- versity having an accredited college of veterinary medicine or a department of veterinary science or animal pathology, or a similar unit conducting animal health and disease research in a State agricultural experiment station; (2) the term "dean" means the dean of a college or university which qualifies as an eligible institution; (3) the term "director" means the director of a State agricul- tural experiment station which qualifies as an eligible institution; (4) the term "Board" means the Animal Health Science Research Advisory Board; and (5) the term "animal health research capacity" means the capacity of an eligible institution to conduct animal health and disease research, as determined by the Secretary. AUTHORIZATION TO T H E SECRETARY OF AGRICULTURE 7 use 3193. SEC. 1431. In order to carry out the purpose of this subtitle, the Secretary is hereby authorized to cooperate with, encourage, and assist the States in carrying out programs of animal health and disease research at eligible institutions in the manner hereinafter described in this subtitle. ANIMAL H E A L T H SCIENCE RESEARCH ADVISORY BOARD Establishment; SEC. 1432. (a) The Secretary shall establish a board to be known membership. as the Animal Health Science Research Advisory Board which shall 7 use 3194. have a term of five years, and which shall be composed of the follow- ing eleven members— (1) a representative of the Agricultural Research Service of the Department of Agriculture, (2) a representative of the Cooperative State Research Service of the Depatment of Agriculture, (3) a representative of the Animal and Plant Health Inspection Service of the Department of Agriculture, (4) a representative of the Bureau of Veterinary Medicine of the Food and Drug Administration of the Department of Health, Education, and Welfare, and (5) seven members appointed by the Secretary— (A) two persons representing accredited colleges of veter- inary medicine, (B) two persons representing State agricultural experi- ment stations, and (C) three persons representing national livestock and poul- try organizations. Travel expenses. The members shall serve without compensation, if not otherwise officers or employees of the United States, except that they shall, while away from their homes or regular places of business in the perform- ance of services for the Board, be allowed travel expenses, including per diem in lieu of subsistence, in the same manner as persons employed intermittently in the Government service are allowed expenses under sections 5701 through 5707 of title 5 of the United States Code. (b) The Board shall meet at the call of the Secretary, but at least once annually, to consult with and advise the Secretary with respect
PUBLIC LAW 95-113—SEPT. 29, 1977 91 STAT. 1003 to the implementation of this subtitle and to recommend immediate priorities for the conduct of research programs authorized under this subtitle, under such rules and procedures for conducting business as the Secretary shall, in the Secretary's discretion, prescribe. APPROPRIATIONS FOR CONTINUING ANIMAL H E A L T H AND DISEASE RESEARCH PROGRAMS Sec. 1433. (a) There are hereby authorized to be appropriated such Appropriation funds, not to exceed $25,000,000 annually, as Congress may determine authorization. necessary to support continuing animal health and disease research 7 use 3195. programs at eligible institutions. Funds appropriated under this sec- tion shall be used: (1) to meet expenses of conducting animal health and disease research, publishing and disseminating the results of such research, and contrilauting to the retirement of employees subject to the provisions of the Act of March 4,1940 (54 Stat. 39-40, as amended; 7 U.S.C. 331); (2) for administrative planning and direction; and (3) to purchase equipment and supplies necessary for conducting such research. (b) Funds appropriated under subsection (a) of this section for any Funds, fiscal year shall be apportioned as follows: apportionment. (1) Four per centum shall be retained by the Department of Agriculture for administration, program assistance to the eligible institutions, and program coordination. (2) Forty-eight per centum shall be distributed among the sev- eral States in the proportion that the value of and income to pro- ducers from domestic livestock and poultry in each State bears to the total value of and income to producers from domestic livestock and poultry in all the States. The Secretary shall determine the total value of and income from domestic livestock and poultry in all the States and the proportionate value of and income from w;r domestic livestock and poultry for each State, based on the most current inventory of all cattle, sheep, swine, horses, and poultry published by the Department of Agriculture. (3) Forty-eight per centum shall be distributed among the sev- eral States in the proportion that the animal health research capacity of the eligible institutions in each State bears to the total animal health research capacity in all the States. The Secretary shall determine the animal health research capacity of the eligible institutions with the advice, when available, of the Board. (c) In each State with one or more accredited colleges of veterinary State animal medicine, the deans of the accredited college or colleges and the direc- health and tor of the State agricultural experiment station shall develop a com- disease research prehensive animal health and disease research program for the program. State based on the animal health research capacity of each eligible institution in the State, which shall be submitted to the Secretary for approval and shall be used for the allocation of funds available to the State under this section. (d) When the amount available under this section for allotment to Excess funds. any State on the basis of domestic livestock and poultry values and income exceeds the amount for which the eligible institution or institu- tions in the State are eligible on the basis of animal health research capacity, the excess may be used, at the discretion of the Secretary, for remodeling of facilities, construction of new facilities, or increase in staffing, proportionate to the need for added research capacity. (e) Whenever a new college of veterinary medicine is established Funds, in a State and is accredited, the Secretary, after consultation with the reallocation.
91 STAT. 1004 PUBLIC LAW 95-113—SEPT. 29, 1977 dean of such college and the director of the State agricultural experi- ment station and, where applicable, deans of other accredited colleges in the State, shall provide for the reallocation of funds available to the State pursuant to subsection (b) of this section between the new college and other eligible institutions in the State, based on the animal health research capacity of each eligible institution. Regional colleges (f) Whenever two or more States jointly establish an accredited of veterinary regional college of veterinary medicine or jointly support an accredited medicine. college of veterinary medicine serving the States involved, the Secre- tary is authorized to make funds which are available to such States pursuant to subsection (b) (2) of this section available for such col- lege in such amount that reflects the combined relative value of and income from domestic livestock and poultry in the cooperating States, such amount to be adjusted, as necessary, pursuant to the provisions of subsections (c) and (e) of this section. APPROPRIATIONS FOR RESEARCH ON NATIONAL OR REGIONAL PROBLEMS Appropriation SEC. 1434. (a) There are hereby authorized to be appropriated such authorization. funds, not to exceed $15,000,000 annually, as Congress may determine 7 use 3196. necessary to support research on specific national or regional animal health or disease problems. (b) Funds appropriated under this section shall be allocated by the Secretary to eligible institutions for work to be done, as mutually agreed upon between the Secretary and the eligible institution or institutions. The Secretary shall, whenever possible, consult the Board in developing plans for the use of these funds. AVAILABILITY OF APPROPRIATED FUNDS 7 use 3197. SEC. 1435. Funds available for allocation under the terms of this subtitle shall be paid to each State or eligible institution at such times and in such amounts as shall be determined by the Secretary. Ftmds shall remain available for payment of unliquidated obligations for one additional fiscal year following the year of appropriation. WITHHOLDING OF APPROPRIATED FUNDS 7 use 3198. SEC. 1436. If the Secretary determines that a State is not entitled to receive its allocation of the annual appropriation under section 1433 of this title because of its failure to satisfy requirements of this subtitle or regulations issued under it, the Secretary shall withhold such Report to amount. The facts and reasons concerning the determination and with- President. holding shall be reported to the President; and the amount involved shall be kept separate in the Treasury until the close of the next Con- gress. If the next Congress does not direct such sum to be paid, it shall be carried to surplus. REQUIREMENTS FOR USE OF FUNDS Research project SEC. 1437. With respect to research projects on problems of animal proposals. health and disease to be performed at eligible institutions and sup- 7 use 3199. ported with funds allocated to the States under section 1433 of this title, the dean or director of each eligible institution shall cause to be prepared and shall review proposals for such research projects, which contain data showing compliance with the purpose in section 1429 of this title and the provisions for use of fimds specified in section 1433 r ji< >•• (a) of this title, and with general guidelines for project eligibility
PUBLIC LAW 95-113—SEPT. 29, 1977 91 STAT. 1005 to be provided by the Secretary with the advice, when available, of the Board. Such research proposals that are approved by the dean or direc- Report to tor shall be submitted to the Secretary prior to assignment of funds Secretary of thereto with a brief summary showing compliance with the provisions Agriculture, of this subtitle and the Secretary's general guidelines. MATCHING FUNDS SEC. 1438. No funds in excess of $100,000, exclusive of the funds 7 USC 3200. provided for research on specific national or regional animal health '^' and disease problems under the provisions of section 1434 of this title, shall be paid by the Federal Government to any State under this sub- title during any fiscal year in excess of the amount from non-Federal sources made available to and budgeted for expenditure by eligible institutions in the State during the same fiscal year for animal health and disease research. The Secretary is authorized to make such pay- ments in excess of $100,000 on the certificate of the appropriate official of the eligible institution having charge of the animal health and disease research for which such payments are to be made. If any eligi- ble institution certified for receipt of matching funds fails to make available and budget for expenditure for animal health and disease research in any fiscal year sums at least equal to the amount for which it is certified, the difference between the Federal matching funds avail- able and the funds made available to and budgeted for expenditure by the eligible institution shall be reapportioned by the Secretary among other eligible institutions of the same State, if there are any which qualify therefor, and, if there are none, the Secretary shall reap- portion such difference among the other States. ALLOCATIONS UNDER T H I S SUBTITLE NOT SUBSTITUTIONS SEC. 1439. The sums appropriated and allocated to States and 7 USC 3201. eligible institutions under this subtitle shall be in addition to, and not in substitution for, sums appropriated or otherwise made available to such States and institutions pursuant to other pi-ovisions of law. Subtitle F—Small Farm Research and Extension SMALL FARM RESEARCH AND EXTENSION PROGRAMS SEC. 1440. Section 502 of the Rural Development Act of 1972 (86 Stat. 671; 7 U.S.C. 2662) is amended by— (1) amending subsection (c) to read as follows: "(c) SMALL FARM RESEARCH PROGRAMS.—Small farm research pro- grams shall consist of programs of research to develop new approaches for initiating and upgrading small farmer operations through manage- ment techniques, agricultural production techniques, farm machinery technology, new products, new marketing techniques, and small farm finance."; and (2) adding at the end thereof a new subsection (d) as follows: "(d) SMALL FARM EXTENSION PROGRAMS.—Small farm extension programs shall consist of extension programs to improve operations of small farmers using, to the maximum extent practicable, parapro- fessional personnel to work with small farmers on an intensive basis to initiate and improve management techniques, agricultural produc- tion techniques, farm machinery technology, marketing techniques.
91 STAT. 1006 PUBLIC LAW 95-113—SEPT. 29, 1977 and small farm finance, and to increase utilization by small farmers of existing services offered by the United States Department of Agri- culture and other public and private agencies and organizations.". PROGRAM MONEYS SEC. 1441. Section 503 of the Kural Development Act of 1972 (86 Stat. 672, as amended; 7 U.S.C. 2663) is amended by— (1) inserting in subsection (a) a comma and the phrase "except 7 use 2662. subsections (c) and (d) of section 502," after the pihrase "this title"; (2) redesignating subsections (c), (d), and (e) as (e), (f), and (g), respectively; (3) adding new subsections (c) and (d) as follows: Appropriation " (c) There are hereby authorized to be appropriated to carry out authorization. the purposes of subsections (c) and (d) of section 502 of this title not to exceed $20,000,000 for each of the fiscal years ending Septem- ber 30, 1978, and September 30, 1979. Funds, "(d) Such sums as Congress shall appropriate to carry out the apportionment. purposes of this title pursuant to subsection (c) of this section shall be distributed by the Secretary as follows: "(1) 4 per centum to be used by the Secretary for Federal administration; "(2) 19 per centum to be allocated among the several States to carry out the programs authorized in subsection (c) of section 502 of this title in such amounts as determined by the Secretary; and "(3) 77 per centum to be allocated among the several States to carry out the programs authorized in subsection (d) of section 502 of this title in such amounts as determined by the Secretary."; and (4) striking out in subsection (f), as redesignated by subsec- tion (b) of this section, the word "and" after " (b)," and inserting a comma and the phrase "and ( d ) " after "(c)". DEFINITION OF SMALL FARMER SEC. 1442. Section 507 of the Rural Development Act of 1972 (86 Stat. 674; 7 U.S.C. 2667) is amended by adding at the end thereof a new subsection (c) to read as follows: "(c) 'Small farmer' means any farmer with gross sales from farming of $20,000 or less per year.". REPORTS SEC. 1443. Title V of the Rural Development Act of 1972 (86 Stat. 671-674, as amended; 7 U.S.C. 2661-2668) is amended by adding at the end thereof a new section 510 to read as follows: a REPORTS Report to "SEC. 510. The Secretary shall evaluate annually the effectiveness Congress. of the programs established under subsections (c) and (d) of section 7 use 2670. 502 of this title and make a report to Congress not later than February 1 of each year on that evaluation and the operation of the programs during the preceding fiscal year.".
PUBLIC LAW 95-113—SEPT. 29, 1977 91 STAT. 1007 Subtitle G—1890 Land-Grant College Funding EXTENSION AT 1 8 9 0 LAND-GRANT COLLEGES, INCLUDING TUSKEGEE INSTITUTE SEC. 1444. (a) There are hereby authorized to be appropriated Appropriation authorization. annually such sums as Congress may determine necessary to support 7 use 3221. continuing agricultural and forestry extension at colleges eligible to receive funds under the Act of August 30, 1890 (26 Stat. 417-419, as amended; 7 U.S.C. 321-326 and 328), including Tuskegee Institute (hereinafter in this section referred to as "eligible institutions"). Beginning with the fiscal year ending September 30, 1979, there shall be appropriated under this section for each fiscal year an amount not less than 4 per centum of the total appropriations for such year under the Act of May 8, 1914 (38 Stat. 372-374, as amended; 7 U.S.C. 341-349) : Provided, That the amount appropriated for the fiscal year ending September 30, 1979, shall not be less than the amount made available for the fiscal year ending September 30,1978, to such eligible institutions under section 3(d) of the Act of May 8,1914 (38 Stat. 373, as amended; 7 U.S.C. 343(d)). Funds appropriated under this section shall be used for expenses of conducting extension programs and activities, and for contributing to the retirement of employees subject to the provisions of the Act of March 4, 1940 (54 Stat. 39-40, as amended; 7 U.S.C. 331). No more than 20 per centum of the funds received by an institution in any fiscal year may be carried forward to the succeeding fiscal year. (b) Beginning with the fiscal year ending September 30, 1979— Funds, (1) any funds annually appropriated under this section up apportionment. to the amount appropriated for the fiscal year ending September 30, 1978, pursuant to section 3(d) of the Act of May 8, 1914, as amended, for eligible institutions, shall be allocated among the eligible institutions in the same proportion as funds appropri- ated under section 3(d) of the Act of May 8, 1914, as amended, for the fiscal year ending September 30, 1978, are allocated among the eligible institutions; and (2) any funds appropriated annually under this section in excess of an amount equal to the amount appropriated under sec- tion 3(d) of the Act of May 8, 1914, for the fiscal year ending September 30, 1978, for eligible institutions, shall be distributed as follows: (A) A sum equal to 4 per centum of the total amount appropriated each fiscal year under this section shall be allotted to the Extension Service of the Department of Agri- culture for administrative, technical, and other services, and for coordinating the extension work of the Department of Agriculture and the several States. (B) Of the remainder, 20 per centum shall be allotted among the eligible institutions in equal proportions; 40 per centum shall be allotted among the eligible institutions in the proportion that the rural population of the State in which each eligible institution is located bears to the total rural pop- ulation of all the States in which eligible institutions are located, as determined by the last preceding decennial census; and the balance shall be allotted among the eligible institu- tions in the proportion that the farm population of the State in which each eligible institution is located bears to the total 29-194 0 -
91 STAT. 1008 PUBLIC LAW 95-113—SEPT. 29, 1977 farm population of all the States in which the eligible institutions are located, as determined by the last preceding decennial census. In computing the distribution of funds allocated under paragraph (2) of this subsection, the allotments to Tuskegee Institute and Ala- bama Agricultural and Mechanical University shall be determined as if each institution were in a separate State. Comprehensive (c) The State director of the cooperative extension service and the program of administrative head for extension at the eligible institution in each extension, State where an eligible institution is located shall jointly develop, by submittal to mutual agreement, a comprehensive program of extension for such Secretary of Agriculture. State to be submitted for approval by the Secretary within one year after the date of enactment of this title. Ejititlement. (d) On or about the first day of October in each year after enact- ment of this title, the Secretary shall ascertain whether each eligible institution is entitled to receive its share of the annual appropriation for extension work under this section and the amount which it is Work plans. entitled to receive. Before the funds herein provided shall become avail- able to any eligible institution for any fiscal year, plans for the work to be carried out under this section shall be submitted by the proper Report to officials of each institution and approved by the Secretary. Such sums Secretary of shall be paid in equal quarterly payments on or about October 1, Jan- Agriculture. uary 1, April 1, and July 1 of each year to the treasurer or other officer of the eligible institution duly authorized to receive such payments and such officer shall be required to report to the Secretary on or about the first day of December of each year a detailed statement of the amount so received during the previous fiscal year and its disbursement, on forms prescribed by the Secretary. Lost or (e) If any portion of the moneys received by any eligible institution misapplied funds. for the support and maintenance of extension work as provided in this section shall by any action or contingency be diminished or lost or be misapplied, it shall be replaced by such institution and until so replaced no subsequent appropriation shall be apportioned or paid to such institution. No portion of such moneys shall be applied, directly or indirectly, to the purchase, erection, preservation, or repair of any building or buildings, or the purchase or rental of land, or in college course teaching, lectures in college, or any other purpose not speci- Institutional fied in this section. It shall be the duty of such institution, annually, operations, report on or about the first day of January, to make to the Governor of the to Governor. State in which it is located a full and detailed report of its operations in extension work, including a detailed statement of receipts and expenditures from all sources for this purpose, a copy of which report shall be sent to the Secretary. Report to (f) If the Secretary finds that an eligible institution is not entitled President. to receive its share of the annual appropriation, the facts and reasons therefor shall be reported to the President, and the amount involved shall be kept separate in the Treasury until the expiration of the next Congress in order that the institution may, if it should so desire, appeal to Congress from the determination of the Secretary. If the next Congress does not direct such sum to be paid, it shall be carried to surplus. U.S. mail service, (g) To the extent that the official mail consists of correspondence, use. bulletins, and reports for furtherance of the purposes of this section, it ^ a l l be transmitted in the mails of the United States under penalty indicia: Provided^ That each item shall bear such indicia as are pre- scribed by the Postmaster General and shall be mailed under such
PUBLIC LAW 95-113—SEPT. 29, 1977 91 STAT. 1009 regulations as the Postmaster General may from time to time prescribe. Such items may be mailed from a principal place of business of each eligible institution or from an established subunit of such institution. AGRICULTURAL RESEARCH AT 18 9 0 LAND-GRANT COLLEGES, INCLUDING TUSKEGEE I N S T I T U T E SEC. 1445. (a) There are hereby authorized to be appropriated annu- Appropriation ally such sums as Congress may determine necessary to support con- authorization. tinuing agricultural research at colleges eligible to receive funds under 7 use 3222. the Act of August 30, 1890 (26 Stat. 417-419, as amended; 7 U.S.C. 321-326 and 328), including Tuskegee Institute (hereinafter referred to in this section as "eligible institutions"). Beginning with the fiscal year ending September 30, 1979, there shall be appropriated under this section for each fiscal year an amount not less than 15 per centum of the total appropriations for such year under section 3 of the Act of March 2, 1887 (24 Stat. 441, as amended; 7 U.S.C. 361c) : Post, p. 1018. Provided, That the amount appropriated for the fiscal year ending September 30,1979, shall not be less than the amount made available in the fiscal year ending September 30, 1978, to such eligible institutions under the Act of August 4, 1965 (79 Stat. 431, 7 U.S.C. 450i). Funds appropriated under this section shall be used for expenses of conduct- ing agricultural research, printing, disseminating the results of such research, contributing to the retirement of employees subject to the provisions of the Act of March 4,1940 (54 Stat. 39-40, as amended; 7 U.S.C. 331), administrative planning and direction, and purchase and rental of land and the construction, acquisition, alteration, or repair of buildings necessary for conducting agricultural research. The eligible institutions are authorized to plan and conduct agricultural research in cooperation with each other and such agencies, institutions, and individuals as may contribute to the solution of agricultural prob- lems, and moneys appropriated pursuant to this section shall be avail- able for paying the necessary expenses of planning, coordinating, and conducting such cooperative research. (b) Beginning with the fiscal year ending September 30, 1979, the Funds, funds appropriated in each fiscal year under this section shall be apportionment, distributed as follows: (1) Three per centum shall be available to the Secretary for administration of this section. (2) The remainder shall be allotted among the eligible institu- "*' tions as follows: (A) $100,000 to each eligible institution. (B) Of the remaining funds, one-half in an amount which bears the same ratio to the total amount to be allotted as the rural population of the State in which the eligible institution is located bears to the total rural population of all the States in which eligible institutions are located, as determined by the last preceding decennial census; and one-half in an amount which bears the same ratio to the total amount to be allotted as the farm population of the State in which the eligible institution is located bears to the total farm popu- lation of all the States in which eligible institutions are located, as determined by the last preceding decennial census. In computing the distribution under this paragraph, the allot- ments to Tuskegee Institute and Alabama Agricultural and -v .. Mechanical University shall be determined as if each institution were in a separate State.
91 STAT. 1010 PUBLIC LAW 95-113—SEPT. 29, 1977 Comprehensive (c) The director of the State agricultural experiment station in each agricultural State where an eligible institution is located and the chief administra- research tive officer specified in subsection (d) of this section in each of the program, submittal to eligible institutions in such State shall jointly develop, by mutual Secretary of agreement, a comprehensive program of agricultural research in such Agriculture. State, to be submitted for approval by the Secretary within one year after the date of enactment of this title. (d) Sums available for allotment to the eligible institutions under the terms of this section shall be paid to such institutions in equal quar- terly payments beginning on or about the first day of October of each Chief year upon vouchers approved by the Secretary. The President of each administrative eligible institution shall appoint a chief administrative officer who shall officer, appointment. be responsible for administration of the program authorized herein. Treasurer, Each eligible institution shall designate a treasurer or other officer who designation. shall receive and account for all funds allotted to such institution under Report to the provisions of this section and shall report, with the approval of the Secretary of chief administrative officer, to the Secretary on or before the first day Agriculture. of December of each year a detailed statement of the amount received under the provisions of this section during the preceding fiscal year Lost or and its disbursement on schedules prescribed by the Secretary. If any misapplied funds. portion of the allotted moneys received by any eligible institution shall by any action or contingency be diminished, lost, or misapplied, it shall be replaced by such institution and until so replaced no subsequent appropriation shall be allotted or paid to such institution. Funds made available to eligible institutions shall not be used for payment of nego- tiated overhead or indirect cost rates. U.S. mail service, (e) Bulletins, reports, periodicals, reprints or articles, and other use. publications necessary for the dissemination of results of the research and experiments funded under this section, including lists of publi- cations available for distribution by the eligible institutions, shall be transmitted in the mails of the United States under penalty indicia: Provided^ That each publication shall bear such indicia as are pre- scribed by the Postmaster General and shall be mailed under such regu- lations as the Postmaster General may from time to time prescribe. Such publications may be mailed from the principal place of business of each eligible institution or from an established subunit of such institution. Rules and (f) The Secretary shall be responsible for the proper administration regulations. of this section, and is authorized and directed to prescribe such rules and regulations as may be necessary to carry out its provisions. I t shall be the duty of the Secretary to furnish such advice and assistance as will best promote the purposes of this section, including participation in coordination of research initiated under this section by the eligible institutions, from time to time to indicate such lines of inquiry as to the Secretarv seem most important, and to encourage and assist in the establishment and maintenance of cooperation by and between the several eligible institutions, the State agricultural experiment stations, and between them and the Department of Agriculture. (g) (1) On or before the first day of October in each year after the enactment of this title, the Secretary shall ascertain whether each eli- gible institution is entitled to receive its share of the annual appropria- tions under this section and the amount which thereupon each is entitled, respectively, to receive. Unexpended (2) Whenever it shall appear to the Secretary from the annual funds. statement of receipts and expenditures of funds by any eligible insti- tution that any portion of the preceding annual appropriation allotted to that institution under this section remains unexpended, such amount
PUBLIC LAW 95-113—SEPT. 29, 1977 91 STAT. 1011 shall be deducted from the next succeeding annual allotment to the institution. (3) If the Secretary withholds from any eligible institution any Report to portion of the appropriations available for allotment, the facts and President. reasons therefor shall be reported to the President and the amount involved shall be kept separate in the Treasury until the close of the next Congress. If the next Congress does not direct such sum to be paid, it shall be carried to surplus. (4) The Secretary shall make an annual report to Congress during Report to the first regular session of each year of the receipts and expenditures Congress. and work of the eligible institutions under the provisions of this sec- tion and also whether any portion of the appropriation available for allotment to any institution has been withheld and if so the reasons therefor. (h) Nothing in this section shall be construed to impair or modify the legal relationship existing between any of the eligible institutions and the government of the States in which they are respectively located. Subtitle H—Solar Energy Research and Development PART 1—EXISTING PROGRAMS AGRICULTURAL RESEARCH SEC. 1446. Section 1 of the Act of June 29, 1935 (49 Stat. 436, as amended; 7 U.S.C. 427), is amended by— (1) inserting after "electricity and other forms of power;" in the third sentence the following: "research and development relating to uses of solar energy with respect to farm buildings, farm homes, and farm machinery (including equipment used to dry and cure crops and provide irrigation);"; and (2) adding at the end thereof the following new sentence: "For "Solar energy. purposes of this title, the term 'solar energy' means energy derived from sources (other than fossil fuels) and technolo^es included in the Federal Non-Nuclear Energy Research and Development Act of 1974, as amended.". 42 USC 5901 AGRICULTURAL EXTENSION SEC. 1447. The Act of May 8, 1914 (38 Stat. 372-374, as amended; 7 U.S.C. 341-349), is amended by;— (1) inserting after "subjects relating to agriculture" in sec- tion 1 the following: ", uses of solar energy with respect to agri- 7 USC 341. culture,"; (2) adding at the end of section 1 the following new sentence: "Solar energy. "For the purposes of this Act, the term 'solar energy' means energy derived from sources (other than fossil fuels) and tech- nologies included in the Federal Non-Nuclear Energy Research and Development Act of 1974, as amended."; and (3) inserting after "demonstrations in agriculture" in section 2 the following: ", uses of solar energy with respect to agri- 7 USC 342. culture,". RURAL DEVELOPMENT SEC. 1448. (a) Section 303 of the Consolidated Farm and Rural Development Act (75 Stat. 307, as amended; 7 U.S.C. 1923) is amended by inserting " ( a ) " immediately before the first sentence and by adding tne following new subsection:
91 STAT. 1012 PUBLIC LAW 95-113—SEPT. 29, 1977 Definitions. "(b) For purposes of this subtitle— "(1) the term 'improving farms' includes, but is not limited to, the acquisition and installation of any qualified non-fossil energy system in any residential structure located on a family farm; and "(2) the term 'qualified non-fossil energy system' means any system that utilizes technologies to generate fuel, energy, or energy intensive products from products other than fossil fuels as included in the Federal Non-Nuclear Energy Kesearch and Devel- 42 use 5901 opment Act of 1974, as amended, which meets such standards as note. may be prescribed by the Secretary, taking into consideration appropriate and available standards prescribed by the Secretary of Housing and Urban Development.", (b) Section 312(a) of the Consolidated Farm and Rural Develop- ment Act (75 Stat. 312, as amended; 7 U.S.C. 1942(a)) is amended (1) inserting after "poultry, and farm equipment" in clause (2) the following: "(including equipment which utilizes solar energy)"; and "Solar energy. (2) adding at the end thereof a new sentence as follows: "For the purposes of this subtitle, the term 'solar energy' means energy derived from sources (other than fossil fuels) and technologies included in the Federal Non-Nuclear Energy Research and Devel- opment Act of 1974, as amended.". PART 2—COMPETITIVE GRANTS PROGRAM Solar energy SEC. 1449. The Secretary shall carry out a program of competitive research. grants to persons and organizations, subject to the requirements and 7 use 3241. conditions provided for in sections 2(e), 2(f), and 2(h) of the Act of August 4, 1965 (79 Stat. 431; 7 U.S.C. 450i), as amended by section 1414 of this title, for carrying out research and development relating to— (1) uses of solar energy with respect to farm buildings, farm homes, and farm machinery (including, but not limited to, equip- ment used to dry or cure farm crops or forest products, or to provide irrigation); and (2) uses of biomass derived from solar energy, including farm and forest products, byproducts, and residues, as substitutes for nonrenewable fuels and petrochemicals. PART 3—INFORMATION SYSTEM AND ADVISORY COMMITTEE SOLAR ENERGY RESEARCH INFORMATION SYSTEM Solar energy SEC. 1450. The Secretary shall, through the Cooperative State research projects, Research Service and other agencies within the Department of Agri- compilation. culture which the Secretary considers appropriate, in consultation 7 use 3251. with the Energy Research and Development Administration, other appropriate United States Government agencies, the National Acad- emy of Sciences, and private and nonprofit institutions involved in solar energy research projects, by June 1,1978, and by June 1 in each year thereafter, make a compilation of solar energy research projects related to agriculture which are being carried out during such ye?,r by Federal, State, private, and nonprofit institutions and, where avail- able, the results of such projects. Such compilations may include, but are not limited to, projects dealing with heating and cooling methods for farm structures and dwellings (such as greenhouses, curing bains, and livestock shelters), storage of power, operation of farm equipment
PUBLIC LAW 95-113—SEPT. 29, 1977 91 STAT. 1013 (including irrigation pumps, crop dryers and curers, and electric vehicles), and the development of new technologies to be used on farms which are powered by other than fossil fuels or derivatives thereof. ADVISORY COMMITTEE SEC. 1451. In order to assist the Secretary in carrying out functions Establishment, assigned to the Secretary under part 4 of this subtitle, the Secretary authorization. 7 use 3252. is authorized to establish an advisory committee within the Depart- ment of Agriculture or utilize an existing advisory committee, if a suitable one exists, for such purposes. PART 4—^MODEL FARMS AND DEMONSTRATION PROJECTS • MODEL FARMS SEC. 1452. (a) In order to promote the establishment and operation 7 USC 3261. of solar energy demonstration farms within each State, the Secretary shall distribute funds to carry out the activities described in subsec- tions (b) and (c) of this section and section 1453 of this title to one or more of the following in each State: the State department of agri- culture, the State cooperative extension service, the State agricultural experiment station, foresti-y schools eligible to receive funds under the Act of October 10, 1962 (76 Stat. 806-807, as amended; 16 U.S.C. 582a, 582a-l—582a-7), or colleges and universities eligible to receive funds under the Act of August 30.1890 (26 Stat. 417-419, as amended; 7 U.S.C. 321-326 and 328), including Tuskegee Institute (hereinafter in this part referred to as "eligible institutions"), in accordance with such rules and regulations as the Secretary may prescribe. (b) The recipient or recipients in such State shall— (1) establish at least one large model farm which— (A) demonstrates all the solar energy projects determined by the Secretary, in consultation with the recipient or recipi- ents, to be useful and beneficial to the State; (B) is located in the State on land owned or operated by that State and, if practicable, on the State agricultural experi- ment station farm land; and (C) includes other farming practices, such as raising live- stock and crops, in order to provide a model of a farm which applies new and improved methods of agriculture through the use of solar energy as a means of heating, cooling, dry- ing, or curing crops, and providing other farm needs; (2) sell the products of the model farm established under Sale of farm paragraph (1) of this subsection and pay to the Secretary that produce. portion of the proceeds received through each such sale as bears the same proportion to the total proceeds as the grants under this section bear to the total cost of operating the farm. The Sec- retary shall deposit such funds into a fund which shall be avail- able without fiscal year limitation for use in carrying out the provisions of this part; (3) provide tours of the model farm to farmers and other inter- Farm tours. ested groups and individuals and, upon request, provide such farmers, groups, and individuals with information concerning the operation of such model farm and the demonstrations, if any, established by it under section 1453 of this title; (4) determine the costs of energy, the income, and the total Cost cost of the model farm; and determination.
91 STAT. 1014 PUBLIC LAW 95-113—SEPT. 29, 1977 Report to (5) annually compile a report concerning energy usage, income Secretary of costs, operating difficulties, and farmer interest with respect Agriculture. ^Q ^.lie model farm and the demonstrations, if any, established by it under section 1453 of this title, and submit the report to the Secretary along with any recommendations concerning project changes and specific needs of such farm or demonstrations, (c) The results obtained from each model farm established under subsection (b) of this section which prove to be economically practical shall be extended to other farms in each State through the State cooperative extension service as part of its ongoing energy manage- ment and conservation education programs. DEMONSTRATION PROJECTS Establishment. SEC. 1453. (a) During each calendar year after the first two calendar 7 use 3262. years for which eligible institutions in a State receive grants pursuant to section 1452 of this title the recipient or recipients of such grants in each State, in consultation with the Secretary, shall establish not less than ten demonstrations of solar energy projects which they shall select from among the projects demonstrated on the model farm estab- lished in the State pursuant to section 1452 of this title. Such demon- strations shall be carried out on farms which are already operating in the State. Agreements. (b) The recipient or recipients in each State shall enter into written agreements with persons who own farms and who are willing to carry out solar energy project demonstrations under this section. Such agree- ments shall include the following provisions concerning solar energy projects which the owners agree to demonstrate on such farms: (1) The owner shall carry out the projects on the farm for such period as the Secretary determines to be necessary to fairly dem- onstrate them. (2) Tools, equipment, seeds, seedlings, fertilizer, equipment, and other agricultural materials and technology which are necessary to carry out the projects and which, on the date of such agree- ment, are not commonly being used on farms in such State, shall be provided by the recipient or recipients. (3) During the demonstration period, the recipient or recipients, with the assistance of the Extension Service of the Department of Agriculture, shall provide the owner with technical assistance concerning such projects. (4) During the demonstration period and for such other periods as the recipient or recipients deem necessary, the owner shall— Recordkeeping. (A) keep a monthly record for the farm of changes, if any, in energy usage and costs, the amount of agricultural com- * modities produced, the costs of producing such amount, and the income derived from producing such amount, and of such other data concerning the projects as the recipient or recipi- ents may require; and Records, (B) transmit to the recipient or recipients such monthly transmittal. records, along with a report containing his or her findings, conclusions, and recommendations concerning the projects. (5) During the demonstration period, the owner shall give tours of the farm to farmers and other interested groups and individuals and provide them with a summary of the costs of carrying out such projects. (6) All right, title, and interest to any agricultural commodity produced on the farm as a result of the projects shall be in the owner.
PUBLIC LAW 9 5 - 1 1 3 — S E P T . 29, 1977 91 STAT. 1015 (7) A t the end of the demonstration period, the owner shall have all right, title, and interest to anj materials and technology pro- vided under p a r a g r a p h (2) of this subsection. (8) Such other provisions as the Secretary may, by rule, require. Rules. AUTHORIZATION FOR APPROPRIATIONS SEC. 1454. There are hereby authorized to be appropriated for dis- 7 USC 3263. tribution to eligible institutions for use in establishing model farms and solar energy project demonstrations under the provisions of this part, $20,000,000 for the period beginning October 1,1977, and ending September 30, 1981, and thereafter such sums as may subsequent to the date of enactment of this title be authorized by law for any sub- sequent fiscal year. P A R T 5—REGIONAL SOLAR ENERGY RESEARCH AND DEVELOPMENT CENTERS SEC. 1455. I n order to provide for agricultural research, develop- Establishment, ment, and demonstration projects having a national or regional 7USC 3271. application, t h e Secretary shall establish in existing Federal facilities or in cooperation with State and local government agencies, including State departments of agriculture, colleges and universities, or other qualified persons and organizations, including local nonprofit research groups, not less t h a n three nor more t h a n five regional solar energy research, development, and demonstration centers in the United States for the performance of agricultural research, extension work, and demonstration projects relating to use of solar energy with respect to farm buildings, farm homes, and f a r m machinery (including equip- ment used to d r y and cure crops and provide i r r i g a t i o n ) , to be vari- ously located so as to reflect the unique solar characteristics of different latitudes and climatic regions within the United States. F u n d s used in the operation of such regional centers may be used for the rehabili- tation of existing buildings or facilities to house such centers, but may not be used for the construction or acquisition of new buildings. P A R T 6—APPROPRIATIONS AND D E F I N I T I O N S AUTHORIZATION FOR APPROPRIATIONS SEC. 1456. There are hereby authorized to be appropriated such 7 USC 3281. funds as are necessary to carry out the provisions of p a r t s 2, 3, and 5 of this subtitle. DEFINITIONS SEC. 1457. F o r purposes of this subtitle— 7 u s e 3282. (1) the term "solar energy" means energy derived from sources (other t h a n fossil fuels) and technologies included in t h e Federal Non-Nuclear E n e r g y Research and Development Act of 1974, as amended; and (2) the term " S t a t e " means any State of the United States, the Commonwealth of P u e r t o Rico, Guam, t h e District of Columbia, American Samoa, and the Virgin Islands of the United States. Subtitle I—International Agricultural Research and Extension SEC. 1458. T h e Secretary, subject to such coordination with other 7 USC 3291. F e d e r a l officials, departments, and agencies as the President may direct, is authorized to—
91 STAT. 1016 PUBLIC LAW 95-113—SEPT. 29, 1977 (1) expand the operational coordination of the Department of Agriculture with institutions and other persons throughout the world performing agricultural research and extension activities by exchanging research materials and results with such institu- tions or_ persons and by conducting with such institutions or persons joint or coordinated research and extension on problems of significance to agriculture in the United States; (2) assist the Agency for International Development with a ^ i - cultural research and extension programs in developing countries; (3) work with developed countries on agricultural research and extension, including the stationing of United States scientists at national and international institutions in such countries; (4) assist United States colleges and universities in strengthen- ing their capabilities for agricultural research and extension relevant to agricultural development activities overseas; and (5) further develop within the Department of Agriculture highly qualified experienced scientists who specialize in interna- tional programs, to be available for the activities described in this section. Subtitle J—Studies EVALUATION OF T H E EXTENSION SERVICE AND T H E COOPERATIVE EXTENSION SERVICES ' Transmittal to SEC. 1459. The Secretary shall transmit to Congress, not later than Congress. March 31,1979, an evaluation of the economic and social consequences 7 use 3301. of the programs of the Extension Service and the cooperative exten- sion services, including those programs relating to agricultural production and distribution, home economics, nutrition education (including the Expanded Family and Nutrition Education Program), community development, and 4-H youth programs. WEATHER AND WATER ALLOCATION STUDY Report to SEC 1460. The Secretary shall conduct a comprehensive study of President and the effects of changing climate and weather on crop and livestock Congress. productivity and, within twelve months after the date of the enact- 7 use 3302. ment of this title, submit to the President and Congress a report together with pertinent recommendations, on this study. The study shall include— (1) an assessment of current climate and weather conditions in the United States and the possible impact of changes in cli- mate and weather conditions on the Nation's economy and future food and feed availability and prices; (2) a review of Federal and State water allocation policies; and (3) a consideration of strategies and techniques for dealing with water shortages in the United States that could occur if current climate and weather conditions continue or become more severe. ORGANIC FARMING STUDY Report to SEC. 1461. The Secretary shall conduct, and, within twelve months President and after the date of enactment of this title, submit to the President and Congress. Congress a report containing the results of and the Secretary's recom- 7 use 3303. mendations concerning, an investigation and analysis of the prac- ticability, desirability, and feasibility of collecting organic waste
PUBLIC LAW 95-113—SEPT. 29, 1977 91 STAT. 1017 materials, including manure, crop and food wastes, industrial organic waste, municipal sewage sludge, logging and wood-manufacturing residues, and any other organic refuse, composting or similarly treat- ing such materials, and transporting and placing such materials onto the land to improve soil tilth and fertility. The analysis shall include the projected cost of such collection, transportation, and placement in accordance with sound locally approved soil and water conservation practices. AGRICULTURAL RESEARCH FACILITIES STUDY SEC. 1462. (a) The Secretary shall conduct a comprehensive study Report to of the status and future needs of agricultural research facilities and, President and within fourteen months after the date of enactment of this title, sub- y^i^iJ^^loQA mit to the President and Congress a report on this study. (b) (1) The report shall cover agricultural research facilities and materials including, but not limited to, buildings and farms, labora- tories, plant, seed, genetic stock, insect, virus, and animal collections, and lease and purchase items such as computers, laboratory instru- ments, and related equipment. (2) The report shall include recommendations for a program to provide the United States with the most modern and efficient system of research facilities needed to advance agricultural research in all fields, and recommendations with regard to priority requirements for research instrumentation and facilities needing modernization, con- struction, or renovation in accordance with the requirements of State, regional, and national priority programs of research and based on the fullest utilization of human, monetary, and physical resources. Subtitle K—Funding and Miscellaneous Provisions AUTHORIZATION FOR APPROPRIATIONS FOR EXISTING AND CERTAIN NEW AGRICULTURAL RESEARCH PROGRAMS SEC. 1463. (a) Notwithstanding any authorization for appropria- 7 USC 3311. tions for agricultural research in any Act enacted prior to the date of enactment of this title, there are hereby authorized to be appropriated for the purposes of carrying out the provisions of this title, except sub- 'ifi 51 title H and sections 1416,1417, 1419, 1420, and the competitive grants program provided for in section 1414, and except that the authorization for moneys provided under the Act of March 2,1887 (24 Stat. 440-442, as amended; 7 U.S.C. 361a-361i), is excluded and is provided for in subsection (b) of this section, $505,000,000 for the fiscal year ending September 30, 1978, $575,000,000 for the fiscal year ending Septem- ber 30,1979, $645,000,000 for the fiscal year ending September 30,1980, $715,000,000 for the fiscal year ending September 30, 1981, and $780,000,000 for the fiscal year ending September 30, 1982, and not in excess of such sums as may after the date of enactment of this title be authorized by law for any subsequent fiscal year. (b) Notwithstanding any authorization for appropriations for agri- cultural research at State agricultural experiment stations in any Act enacted prior to the date of enactment of this title, there are hereby authorized to be appropriated for the purpose of conducting agricul- tural research at State agricultural experiment stations pursuant to the Act of March 2, 1887 (24 Stat. 440-442, as amended; 7 U.S.C. 361a- 361i), $120,000,000 for the fiscal year ending September 30, 1978, $145,000,000 for the fiscal year ending September 30,1979, $170,000,000 for the fiscal year ending September 30,1980, $195,000,000 for the fiscal
91 STAT. 1018 PUBLIC LAW 95-113—SEPT. 29, 1977 year end-ng September 30, 1981, and $220,000,000 for the fiscal year ending September 30,1982, and not in excess of such sums as may after the date of enactment of this title be authorized by law for any subse- quent fiscal year. AUTHORIZATION FOR APPROPRIATIONS FOR EXTENSION EDUCATION 7 use 3312. SEC. 1464. Notwithstanding any authorization for appropriations for the Cooperative Extension Service in any Act enacted prior to the date of enactment of this title, there are hereoy authorized to be appropri- ated for the purposes of carrying out the extension programs of the Department of Agriculture $260,000,000 for the fiscal year ending Sep- tember 30,1978, $280,000,000 for the fiscal year ending September 30, 1979, $300,000,000 for the fiscal year ending September 30, 1980, $320,000,000 for the fiscal year ending September 30, 1981, and $350,000,000 for the fiscal year ending September 30,1982, and n o t i n excess of such sums as may after the date of enactment of this title be authorized by law for any subsequent fiscal year. EXTENSION PROGRAMS FOR GUAM AND T H E VIRGIN ISLANDS OF T H E UNITED STATES Matching funds. SEC. 1465. Section 3 of the Act of May 8, 1914 (38 Stat. 373, as amended; 7 U.S.C. 343), is amended by adding thereto a new subsection (e) to read as follows: "(e) Insofar as the provisions of subsections (b) and (c) of this sec- tion, which require or permit Congress to require matching of Federal funds, apply to the Virgin Islands of the United States and Guam, such provisions shall be deemed to have been satisfied, for the fiscal years ending September 30, 1978, and September 30, 1979, only, if the amounts budgeted and available for expenditure by the Virgin Islands of the United States and Guam in such years equal the amounts budg- eted and available for expenditure by the Virgin Islands of the United States and Guam in the fiscal year ending September 30,1977.". AMENDMENTS TO T H E H A T C H ACT Repeal. SEC. 1466. (a) Section 3(c) (4) of the Act of March 2,1887 (24 Stat. 441, as amended; 7 U.S.C. 361c(c) (4)), is hereby repealed. (b) Section 3 (c) (5) of such Act (24 Stat. 441, as amended; 7 U.S.C. 361c(c) (5)) is amended by adding at the end thereof a new sentence to read as follows: "These administrative funds may be used for transpor- tation of scientists who are not officers or employees of the United States to research meetings convened for the purpose of assessing research opportunities or research planning.". P A Y M E N T OF FUNDS 7 use 3313. SEC, 1467. Except as provided elsewhere in this Act or any other Act of Congress, funds available for allotment under this title shall be paid to each eligible institution or State at such time and in such amounts as shall be determined by the Secretary. WITHHOLDING OF FUNDS Report to SEC. 1468. Except as provided elsewhere in this Act or any other President. Act of Congress, if the Secretary determines that an institution or 7 use 3314. State is not entitled to receive its allotment of an annual appropria-
PUBLIC LAW 95-113—SEPT. 29, 1977 91 STAT. 1019 tion under any provision of this title because of a failure to satisfy requirements of this title or regulations issued under it, the Secretary shall withhold such amounts, the facts and reasons concerning the determination and withholding shall be reported to the President, and the amount involved shall be deposited in the miscellaneous receipts of the Treasury. AUDITING, REPORTING, BOOKKEEPING, AND ADMINISTRATIVE REQUIREMENTS SEC. 1469. Except as provided elsewhere in this Act or any other 7 USC 3315. Act of Congress—• (1) assistance provided under this title shall be subject to the provisions of sections 2(e), 2(f), and 2(h) of the Act of August 4, 1965 (79 Stat. 431; 7 U.S.C. 450i), as amended by sec- tion 1414 of this title; (2) the Secretary shall provide that each recipient of assistance under this title shall submit an annual report, at such times and on such forms as the Secretary shall prescribe, stating the accom- plishments of projects (on a project-by-project basis) for which such assistance was used and accounting for the use of all such assistance. If the Secretary determines that any portion, of funds Lost or made available under this title has been lost or applied in a man- misapplied funds, ner inconsistent with the provisions of this title or regulations issued thereunder the recipient of such funds shall reimburse the Federal Government for the funds lost or so applied, and the Sec- retary shall not make available to such recipient any additional funds under this Act until the recipient has so reimbursed the Federal Government; (3) three per centum of the appropriations shall be retained by the Secretary for the administration of the programs author- ized under this title; and (4) the Secretary shall establish appropriate criteria for grant and assistance approval and necessary regulations pertaining thereto. -.. : i RULES AND REGULATIONS SEC. 1470. The Secretary is authorized to issue such rules and regu- 7 USC 3316. lations as the Secretary deems necessary to carry out the provisions of this title. TITLE XV—RURAL DEVELOPMENT AND CONSERVATION AGRICULTURAL CONSERVATION PROGRAM SEC. 1501. (a) Section of the Soil Conservation and Domestic Allotment Act (49 Stat 1149, as amended; 16 U.S.C. 590h) is amended by— (1) striking out the first three sentences of subsection (b) and Conservation and inserting in lieu thereof the following: "The Secretary is author- environmental ized to carry out the policy and purposes specified in section 7(a) assistance. of this Act by providing financial assistance to agricultural pro- ducers for carrying out enduring conservation and environmental enhancement measures. Eligibility for financial assistance shall be based upon the existence of a conservation or environmental prob-
91 STAT. 1020 PUBLIC LAW 95-113—SEPT. 29, 1977 lem which reduces the productive capacity of the Nation's land and water resources or causes degradation of environmental quality. "The amount of financial assistance to be provided shall be that portion of the cost of installing conservation and environmental enhancement measures which the Secretary determines is neces- sary. In determining the level of payment, consideration will be given to (A) the amount of expected conservation or environmen- tal benefit accruing to society, (B) the total cost of carrying out the needed measures, (C) the degree to which appropriate conserva- tion or pollution abatement practices will be applied in the absence of financial assistance, and (D) in order to avoid duplication of assistance, the degree to which the agricultural producer benefits from other public programs for conservation and environmental enhancement. "The Secretary, in formulating the national program, shall take into consideration (A) the need to control erosion and sedimenta- tion from agricultural land and to conserve the water resources on such land, (B) the need to control pollution from animal wastes, (C) the need to facilitate sound resources management systems through soil and water conservation, (D) the need to encourage voluntary compliance by agricultural producers with Federal and State requirements to solve point and nonpoint sources of pollu- tion, (E) national priorities reflected in the National Environmen- 42 use 4321 tal Policy Act of 1969 and other congressional and administrative note. actions, (F) the degree to which the measures contribute to the national objective of assuring a continuous supply of food and fiber necessary for the maintenance of a strong and healthy people and economy, and (G) the type of conservation measures needed to improve water quality in rural America."; (2) designating as a separate paragraph that portion of the first paragraph of subsection (b) not amended by paragraph (1) of this subsection; and Funds, (3] striking out the first three para^graphs of subsection (e) apportionment. and inserting in lieu thereof the following: "Payments made by the Secretary under subsection (b) of this section to agricultural producers shall be divided among landlords, tenants, and share- croppers in proportion to the extent such landlords, tenants, and sharecroppers contribute to the cost of carrying out the conserva- tion or environmental enhancement measures. The maximum pay- ment which may be made to any person shall be determined by the Secretary.", (b) Section 15 of the Soil Conservation and Domestic Allotment Act (49 Stat. 1151, as amended; 16 U.S.C. 590o) is amended by— Funds for long- (1) adding at the end of the first sentence three new sentences term agreements. as follows: "The amount appropriated shall be available until expended. A specified amount or percentage of the appropriation shall be designated for long-term agreements based on farm and ranch conservation plans approved by local conservation districts, where such districts are organized. The Secretary shall distribute the funds available for financial assistance among the several States in accordance with their conservation needs, as determined by the Secretary."; and (2) striking out the second paragraph.
PUBLIC LAW 95-113—SEPT. 29, 1977 91 STAT. 1021 INCLUSION OF AQUACULTURE AND H U M A N NUTRITION AMONG T H E BASIC FUNCTIONS OF T H E DEPARTMENT OF AGRICULTURE SEC. 1502. (a) Section 520 of the Kevised Statutes, as amended (7 U.S.C. 2201), is amended by striking out "agriculture and rural development" and inserting in lieu thereof "agriculture, rural develop- ment, aquaculture, and human nutrition.". (b) Subsection (a) of section 526 of the Revised Statutes, as amended (7 U.S.C. 2204(a)), is amended by striking out "agriculture and rural development" and inserting in lieu thereof "agriculture, rural development, aquaculture, and human nutrition". AQUACULTURE LOAN AUTHORITY SEC. 1503. (a) Section 32(e) of title I I I of the Bankhead-Jones Farm Tenant Act (50 Stat. 526, as amended; 7 U.S.C. 1011(e)) is amended by— (1) inserting immediately after "land utilization" the follow- ing : "or plans for the conservation, development, and utilization of water for aquacultural purposes"; and (2) inserting immediately before the second sentence a new "Aquaculture." sentence as follows: "As used in this subsection, the term 'aqua- culture' means the culture or husbandry of aquatic animals or plants.", (b) Section 310B(a) of subtitle A of the Consolidated Farm and Rural Development Act (86 Stat. 663; 7 U.S.C. 1932(a)) is amended by— (1) striking out the period at the end of the first sentence and inserting in lieu thereof the following: ", and the conserva- tion, development, and utilization of water for aquaculture pur- " poses." ; and (2) adding at the end thereof a new sentence as follows: "As "Aquaculture." used in this subsection, the term 'aquaculture' means the culture or husbandry of aquatic animals or plants by private industry for commercial purposes including the culture and growing of fish by private industry for the purpose of creating or augment- ing publicly owned and regulated stocks of fish.". ~ DISPOSITION OF E X C E S S FEDERAL PROPERTY TO RURAL FIRE FORCES SEC. 1504. Section 402 of the Rural Development Act of 1972 (86 Stat. 670; 7 U.S.C. 2652) is amended by inserting " ( a ) " before the first sentence and adding at the end thereof new subsections (b) and (c) as follows: __ "(b) The Secretary, with cooperatidn and assistance from the Administrator of the General Services Administration, shall encourage the use of excess personal property (within the meaning of the Fed- eral Property and Administrative Services Act of 1949) by rural 40 USC471 note fire forces receiving assistance under this title. "(c) To promote maximum program effectiveness and economy, the Secretary shall closely coordinate the assistance provided under this title with assistance provided under other fire protection and rural development programs administered by the Secretayy.". RURAL COMMUNITY FIRE PROTECTION PROGRAM SEC. 1505. Section 404 of the Rural Development Act of 1972 Appropriation (86 Stat. 671, as amended; 7 U.S.C. 2654) is amended by adding at the «"**'«"^***°"- end thereof a new sentence as follows: "There is further authorized
91 STAT. 1022 PUBLIC LAW 95-113—SEPT. 29, 1977 to be appropriated to carry out the provisions of this title not to exceed $7,000,000 for each of the fiscal years ending September 30,1978, September 30,1979, and September 30,1980.". CONGRESSIONAL APPROVAL OF WATERSHED PROTECTION AND FLOOD PREVENTION PROJECTS SEC. 1506. The Watershed Protection and Flood Prevention Act (68 Stat. 666, as amended) is amended as follows: (a) Section 2 (16 U.S.C. 1002) is amended by striking out "$250,000" and inserting in lieu thereof "$1,000,000". (b) Section 5(3) (16 U.S.C. 1005(3)) is amended by striking out "$250,000" and inserting in lieu thereof "$1,000,000". (c) Section 5(4) (16 U.S.C. 1005(4)) is amended by striking out "$250,000" and inserting in lieu thereof "$1,000,000". CONGRESSIONAL APPROVAL OF RESOURCE CONSERVATION AND DEVELOPMENT PROJECT LOANS SEC. 1507. The third sentence of section 32(e) of title I I I of the Bankhead-Jones Farm Tenant Act (50 Stat. 525, as amended; 7 U.S.C. 1011(e)) is amended by striking out "$250,000" and inserting in lieu thereof "$500,000". WATERSHED LOAN AUTHORITY SEC. 1508. The last sentence of section 8 of the Watershed Protection and Flood Prevention Act (70 Stat. 1090, as amended; 16 U.S.C. 1006a) is amended by striking out "five million dollars" and inserting in lieu thereof "$10,000,000". MULTIYEAR SET-ASIDE SEC. 1509. Section 1005 of the Agricultural Act of 1970, as added by the Agriculture and Consumer Protection Act of 1973 (87 Stat. 243; 16 U.S.C. 1505) is amended by— (1) striking out "1977" and inserting in lieu thereof "1981"; (2) striking out "1978" and inserting in lieu thereof "1982"; and (3) amending the fourth sentence to read as follows: "Grazing of livestock under this section shall be prohibited, except in areas of a major disaster as determined by the President if the Secre- tary finds there is a need therefor, as a result of such disaster.". AUTHORITY TO M A K E DEFERRED LOAN PAYMENTS SEC. 1510. The Consolidated Farm and Rural Development Act (75 Stat. 307, as amended) is amended as follows: (a) Section 309 (7 U.S.C. 1929) is amended by adding in sub- section (f) (3) between the words "any" and "defaulted" the words "deferred or". (b) Section 309A (7 U.S.C. 1929a) is amended by adding in sub- section (g) (3) between the words "any" and "defaulted" the words "deferred or". CRITICAL LANDS RESOURCE CONSERVATION PROGRAM 16 use 590q-3. SEO. 1511. Notwithstanding any other provision of law— (a) The Secretary of Agriculture is authorized to formulate and carry out a program with owners and operators of land in the Great
PUBLIC LAW 95-113—SEPT. 29, 1977 91 STAT. 1023 Plains area as described in section 16(b) of the Soil Conservation and Domestic Allotment Act (49 Stat. 1151, as amended; 16 U.S.C. 590p(b)) to reduce runoff, soil and water erosion, and otherwise to promote the conservation of soil and water resources in such area through the conversion of cropland from soil depleting uses to con- serving uses including the production of soil conserving cover crops. (b) To effectuate the purposes of the program, the Secretary may ' Agreement, enter into an agreement for a two-year period with an owner or oper- ator as described in subsection (a) Avhereby the owner or operator shall agree to devote to a soil conserving cover crop a specifically designated acreage of cropland on the farm up to 50 per centum of the acreage which had been planted to any soil depleting crop or crops in any of the two years preceding the date of the agreement. The agreement shall be renewable for annual periods thereafter sub- ject to the mutual agreement of the owner or operator and the Sec- retary. In such agreement, the owner or operator shall agree (1) to plant a legume, or if not adapted to such area, an annual, biennial, or a perennial cover crop, as specified in the agreement; (2) to divert from production such portion of one or more crops designated by the Secretary as the Secretary determines necessary to effectuate the pur- pose of the program; (3) not to harvest any crop from or graze the designated acreage during the agreement period, unless the Secre- tary determines that it is necessary to permit grazing or harvesting in order to alleviate damage, hardship, or suffering caused by severe drought, flood, or other natural disaster, and consents to such grazing or harvesting subject to an appropriate reduction in the rate of payment; (4) to give adequate assurance, as specified by the Secre- tary, that the land was not acquired for the purpose of placing it in the program: Provided^ That the foregoing provision shall not pro- hibit the continuation of an agreement by a new owner if an agree- ment has once been entered into under this section nor prevent an owner or operator from placing a farm in the program if the farm was acquired by the owner to replace an eligible farm from which he was displaced because of its acquisition by any Federal, State, or other agency having the right of eminent domain; (5) to forfeit all rights to further payments under the agreement and refund to the United States all payments received thereunder upon his violation of the agreement at any stage during the time he has control of the land if the Secretary determines that such violation is of such a nature as to warrant termination of the agreement, or to make refunds or accept such payment adjustments as the Secretary may deem appro- priate if the Secretary determines that the violation by the owner or operator does not warrant termination of the agreement; (6) upon transfer of his right and interest in the farm, during the agree- ment period, to forfeit all rights to further payments under the a^ee- ment and refund to the United States all payments received thereunder unless the transferee of any such land agrees with the Secretary to assume all obligations of the agreement; (7) not to adopt any practice specified by the Secretary in the agreement as a practice which would tend to defeat the purposes of the agreement; and (8) to such additional provisions as the Secretary determines are desira- ble to effectuate the purposes of the program or to facilitate the practical administration of the program, including such measures as the Secretary may deem appropriate to keep the designated acreage from eroding and free from weeds and rodents in accordance with good conservation systems. (c) In consideration for such agreement, the Secretary shall make Annual annual adjustment payments to the owner or operator for the period of adjustment payments. 29-194 0
91 STAT. 1024 PUBLIC LAW 95-113—SEPT. 29, 1977 the agreement at such rate or rates not in excess of $30 per acre as the Secretary determines to be fair and reasonable. The Secretary may use an advertising and bid procedure in determining the lands in any area to be covered by agreements and the payment rate therefor. The Secre- tary and the owner or operator may agree that the annual adjustment payments for the agreement period shall be made either upon approval of the agreement or in such installments as they may agree to be desirable: Provided^ That for each year any annual adjustment pay- ment is made in advance of performance, the annual adjustment payment shall be reduced by 5 per centum. Termination. (d) The Secretary may terminate any agreement under the pro- gram, by mutual agreement with the owner or operator, if the Secre- tary determines that such termination would be in the public interest, and may agree with the owner or operator to such modification of agreements as the Secretary may determine to be desirable to carry out the purposes of the program or facilitate its administration, Regulations. (e) The Secretary may, to the extent the Secretary deems it desir- able, provide by appropriate regulations for preservation of cropland, crop acreage, and allotment history applicable to acreage diverted from the production of crops to establish vegetative cover for the purpose of any Federal program under which such history is used as a basis for an allotment or other limitation or for participation in such program. Federal and non- (f) In carrying out the program, the Secretary shall utilize the Federal offices, services of local, county, and State committees established under sec- utilization. tion 8 of the Soil Conservation and Domestic Allotment Act (49 Stat. 1149, as amended; 16 U.S.C. 5901i) and the technical services of the Soil Conservation Service and soil and water conservation districts. Program (g) In case any producer who is entitled to any payment under payments. the program dies, becomes incompetent, or disappears before receiv- ing such payment, or is succeeded by another who renders or completes the required performance, the payment shall, without regard to any other provisions of law, be made as the Secretary may determine to be fair and reasonable. Tenants and (h) The Secretary shall provide adequate safeguards to protect the sharecroppers. interests of tenants and sharecroppers, including provision for shar- ing, on a fair and equitable basis, in payments under the program. Regulations. (i) The Secretary shall prescribe such regulations as the Secretary determines necessary to carry out the provisions of this section. Appropriation (j) There are hereby authorized to be appropriated for the period authorization. beginning October 1, 1977, and ending September 30, 1981, such sums as may be necessary to carry out the program provided for in this sec- Commodity tion. The Secretary is authorized to utilize the facilities, services, and Credit authorities of the Commodity Credit Corporation in discharging the Corporation, Secretary's functions and responsibilities under the program, includ- utilization. ing payment of costs of administration: Provided^ That the Commod- ity Credit Corporation shall not make any expenditures for such purposes unless the Corporation has received funds to cover such expenditures from appropriations made to carry out this section. T I T L E XVI—FEDERAL GRAIN INSPECTION RECORDS Record SEC. 1601. Section 12(d) of the United States Grain Standards Act maintenance. (90 Stat. 2882; 7 U.S.C. 87a(d)) is amended by striking out "shall, within the five-year period thereafter, maintain complete and accurate records of purchases, sales, transportation, storage, weighing, han-
PUBLIC LAW 95-113—SEPT. 29, 1977 91 STAT. 1025 dling, treating, cleaning, drying, blending, and other processing, and official inspection and official weighing of grain," and inserting in lieu thereof the following: "shall maintain such complete and accurate records for such period of time as the Administrator may, by regula- tion, prescribe for the purpose of the administration and enforcement of this Act,". SUPERVISION FEES SEC. 1602. (a) Section 7(j) of the United States Grain Standards Act (90 Stat. 2873; 7 U.S.C. 79(j)) is amended to read as follows: " (j) The Administrator shall, under such regulations as the Admin- Inspection costs, istrator may prescribe, charge and collect reasonable fees to cover the estimated cost 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 pro- ceeds 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, excluding administra- tive and supervisory costs. 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.". (b) Section 7A(1) of the United States Grain Standards Act (90 Stat. 2877; 7 U.S.C. 79a(1)) is amended to read as follows: " (1) The Administrator shall, under such regulations as the Admin- Weighing costs, istrator may prescribe, charge and collect reasonable fees to cover the estimated costs of official weighing and supervision of weighing except when the official weighing or supervision of weighing is per- formed 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, cover the costs of the Service incident to its perform- ance of official weighing and supervision of weighing services in the United States and on United States grain in Canadian ports, exclud- ing administrative and supervisory costs. Such fees 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.". (c) Section 21 of the United States Grain Standards Act of 1976 (90 Stat. 2886) is amended by striking out "those Federal administra- 7 use 87h. tive and supervisory costs incurred within the Service's Washington office or not directly related to the official inspection or the provision of weighing services for grain" and inserting in lieu thereof the follow- ing: "Federal administrative and supervisory costs related to the official inspection or the provision of weighing services for grain". (d) Section 27 of the United States Grain Standards Act of 1976 (90 Stat. 2889) is amended by striking out ", who pays fees when due, Post, pp. 1030, in the same manner as prescribed in section 7 or 7A of the United 1031. States Grain Standards Act, as amended by this Act,". 7 u s e 74 note. ESTABLISHMENT OF TEMPORARY ADVISORY COMMITTEE SEC. 1603. (a) In order to assure the normal movement of grain in 7 USC 75a note, an orderly and timely manner, the Secretary of Agriculture shall estab- lish a temporary advison^ committee to provide advice to the Admin- istrator of the Federal Grain Inspection Service with respect to the
91 STAT. 1026 PUBLIC LAW 95-113—SEPT. 29, 1977 7 u s e 71 note. implementation of the United States Grain Standards Act of 1976. The Membership. advisory committee shall consist of not more than twelve members, appointed by the Secretary, representing the interests of grain pro- ducers, consumers, and all segments of the grain industry, including grain inspection and weighing agencies. Members of the advisoir com- mittee shall be appointed not later than thirty days after the date of enactment of this Act. (b) The advisory committee shall be governed by the provisions of the Federal Advisory Committee Act. Clerical (c) The Administrator of the Federal Grain Inspection Service assistance. shall provide the advisory committee with necessary clerical assistance and staff personnel. Travel expenses. (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 title, be allowed travel expenses, including per diem in lieu of subsistence, as authorized under section 5703 of title 5 of the United States Code. Termination. (e) The advisory committee shall terminate eighteen months after the date of enactment of this Act. Appropriation (f) There are hereby authorized to be appropriated such sums as authorization. are necessary to carry out the provisions of this section. TECHNICAL AMENDMENTS SEC. 1604. The United States Grain Standards Act (39 Stat. 482- 485, as amended; 7 U.S.C. 71, 74^-79, 79a and 79b, 84-87, and 87a-87h) is amended as follows: 7 use 75. (a) Section 3 is amended by— (1) striking out "grain sorghum" in subsection (g) and insert- ing in lieu thereof "sorghum"; "Official (2) amending subsection (m) to read as follows: agency." "(m) the term 'official agency' means any State or local govern- mental agency, or any person, designated by the Administrator 7 use 79. pursuant to subsection (f) of section 7 of this Act for the con- duct of official inspection (other than appeal inspection), or sub- 7 u s e 79a. section (c) of section 7A of this Act for the conduct of official weighing or supervision of weighing (other than appeal weigh- ing);"; (3) inserting "for" immediately after "under standards pro- vided" in subsection ( x ) ; and "Supervision of (4) amending subsection (y) to read as follows: weighing." " (y) the term 'supervision of weighing' means such supervision by official inspection personnel of the grain-weighing process as is determined by the Administrator to be adequate to reasonably assure the integrity and accuracy of the weighing and of certifi- cates which set forth the weight of the grain and such physical inspection by such personnel of the premises at which the grain weighing is performed as will reasonably assure that all the grain intended to be weighed has been weighed and discharged into the elevator or conveyance;". Delegation of (b) Section 3A is amended by adding at the end thereof the fol- authority. lowing : "The Secretary may delegate authority to the Administrator 7 u s e 75a. to perform related functions for grain and similar commodities and products thereof under other statutes administered by the Department of Agriculture. Notwithstanding any other provision of law, the Sec- retary is authorized to appoint four individuals to positions at grade 5 u s e 5332 note. 16 of the General Schedule, in the Service.".
PUBLIC LAW 95-113—SEPT. 29, 1977 91 STAT. 1027 (c) Section 4(a) is amended by— ^ 7 USC 76. (1) striking out "grain sorghum" and inserting in lieu thereof "sorghum"; (2) inserting a comma after "equipment calibration and main- tenance" ; and (3) inserting "or procedures" after "(2) standards" and after "revoke such standards" and striking out "procedures" after "weight certification". (d) Section 7 is amended by— 7 USC 79. (1) designating the third sentence in paragaph (2) of sub- section (e) as paragraph (4) of subsection (e) and inserting it at the end of subsection (e); (2) amending subsection (f) by— (A) in the first sentence of paragraph (2), inserting "or State delegated authority pursuant to subsection (e) (2) of this section" immediately after "Not more than one official agency", inserting "inspection" immediately before "provi- sions of this Act", and striking out ", but this paragraph shall not be applicable to prevent any inspection agency from operating in any area in which it was operative on August 15,1968"; (B) striking out "No" in the second sentence of paragraph (2) and inserting in lieu thereof "Except as authorized by the Administrator, no"; (C) designating the second sentence of paragraph (2) as paragraph (3) of subsection (f); and (D) designating the third sentence of paragraph (2) as paragraph (4) of subsection ( f ) ; (3) striking out "subsections (e) and ( f ) " in paragraph (1) of subsection (g) and inserting in lieu thereof "subsection ( f ) " ; and (4) adding at the end of subsection (i) a new sentence as fol- lows : "All or specified functions of such inspections shall be per- formed by official inspection personnel employed by the Service or, except for appeals, by persons operating under a contract with the Service.". (e) Section 7A is amended by— 7 USC 79a (1) in subsection (b), inserting "official weighing or" immedi- ately after "The Administrator is authorized to cause" and insert- ing "at export elevators" immediately after "located other than"; (2) amending paragraph (2) of subsection (c) by— (A) in the first sentence, inserting "or supervision of weighing" immediately after "to delegate authority to per- form official weighing", inserting "official weighing or" immediately before "supervision of weighing, if such agency or person qualifies", and striking out "number" and inserting in lieu thereof "under"; (B) in clause (A) of the second sentence, striking out "at export elevators", and inserting "or supervision of weighing" immediately after "official weighing"; and (C) inserting "official weighing or" immediately before "supervision of weighing" wherever this phrase appears in clause (B) of the second sentence; (3) adding at the end of subsection (d) a new sentence as fol- lows : "All or specified functions of such weighing shall be per- formed by official inspection personnel employed by the Service or, except for appeals, by persons operating under a contract with the Service.";
91 STAT. 1028 PUBLIC LAW 95-113—SEPT. 29, 1977 (4) striking out the second sentence of subsection ( e ) ; (5) amending subsection (f) by—• (A) in clause (2), striking out "employ" and inserting in lieu thereof "permit", and inserting "and who are approved by the Administrator" immediately before "to operate the scales"; and (B) in clause (3), striking out "employees of the facility" and inserting in lieu thereof "persons other than official inspection personnel", and striking out "employees to oper- ate" and inserting in lieu thereof "such persons to operate"; (6) inserting "or supervision of weighing" immediately after "official weighing" in subsection ( g ) ; (7) inserting "or local governmental agency" immediately after "No State" in subsection ( i ) ; and (8) adding at the end of subsection (i) a new sentence as fol- lows: "Not more than one official agency or Staite delegated authority pursuant to subsection (c) (2) of this section for carry- ing out the weighing provisions of this Act Shall be operaJtive ait one time for any geographic area as determined by the Admini- 7 use 74.. strator to effectuate the objectives stated in section 2 of this Act.". 7 use 79b. (f) Section 7B is amended by— (1) inserting "for the purpose of official inspection, official weighing, or supervision of weighing" immediately before "of grain located at all grain elevators" in subsection ( a ) ; Regulations. (2) at the end of subsection (a), inserting "Such regulations shall provide for the charging and collection of reasonable fees to cover the estimated costs to the Service incident to the perform- ance of such testing by employees of the Service. Such fees shall be 7 u s e 79. deposited into the fund created by section 7(j) of this Act."; and (3) inserting "for the purposes of this Act" immediately after "no person shall use" in subsection (c). 7 u s e 84. (g) Section 8 is amended by— (1) amending subsection (a) by— (A) inserting ", other than appeal weighing," immediately after "supervision of weighing" m clause ( 1 ) ; (B) striking out "of grain" in clause (2) (B) and insert- ing in lieu thereof "(including appeal weighing) of grain in the United States, or of United States grain in Canadian ports"; and (C) in clause (3), inserting "or governmental agency" immediately after "(3) to contract with any person", and striking out "specified sampling and laboratory testing" and inserting in lieu thereof "specified sampling, laboratory test- ing, and similar technical functions"; and eompensation. (2) adding at the end of subsection (e) a new sentence as fol- lows : "The Administrator may compensate such personnel at any rate within the appropriate grade of the General Schedule as the Administrator deems necessary without regard to section 5333 of title 5 of the United States Code.". 7 use 87. (h) Section 11 is amended by— (1) inserting "official weighing or" immediately^ before "super- vision of weighing" in paragraph (3) of subsection (b) ; (2) in the first sentence of paragraph (5) of subsection (b), inserting "official weighing or" immediately before "supervision of weighing except", and inserting "director," immediately before "officer, employee,"; and
PUBLIC LAW 95-113—SEPT. 29, 1977 91 STAT. 1029 (3) inserting "or State agency delegated authority under this Act" immediately after "official agency" in subsection (c). (i) Section 12 is amended by— 7 USC 87a. (1) inserting ", every State agency delegated authority under this Act," immediately after "official agency" wherever this phrase appears in subsections (a), (b), and (c); and (2) striking out "delegate authority of this Act" in subsection (c) and inserting in lieu thereof "delegated authority under this Act". (j) Section 13(a) is amended by— 7 usC 87b. (1) inserting ", or that any weighing service under this Act has been performed with respect to grain" immediately before the semicolon at the end of paragraph (6); (2) striking out in paragraph (11) "5, 6, 7(f) (2), 7A, 7B(c), 8, 11, or 12" and inserting in lieu thereof "5; 6; 7(f) (2), (3), or (4);7A;7B(c);8;ll;12;orl7A"; (3) striking out "testing" in paragraph (12) and inserting in lieu thereof "weighing"; and (4) in paragraph (13), striking out "the grain" and inserting in lieu thereof "grain", and inserting "the" immediately after "observing the loading of". (k) Section 16 is amended by— Rules and (1) striking out, in subsection (a), the second sentence and all regulations, that follows "or other person;" in the first sentence down through 7 USC 87e. "by the Administrator." and inserting in lieu thereof the follow- ing: "and prescribe such rules, regulations, and instructions, as the Administrator deems necessary to effectuate the purposes or '^ provisions of this Act. Such regulations may require, as a condi- tion for official inspection or official weighing or supervision of weighing, among other things, (1) that there be installed speci- fied sampling, handling, weighing, and monitoring equipment in grain elevators, warehouses, and other grain storage or handling facilities, (2) that approval of the Administrator be obtained as .., - to the condition of vessels and other carriers or receptacles for the transporting or storing of grain, and (3) that persons hav- ing a financial interest in the grain which is to be inspected (or their agents) shall be afforded an opportunity to oJDserve the weighing, loading, and official inspection thereof, under condi- ' '•' tions prescribed by the Administrtor."; and (2) striking out "additional" in subsection (f). '^ (1) Section 17A is amended by striking out "All persons registered" 7 USC 87f-l. in paragraph (1) of subsection (b) and inserting in lieu thereof "All persons required to register". (m) Section 17B is amended in clause (2) of subsection (b) by 7 USC 87f-2. inserting "notwithstanding the provisions of section 812 of the Agri- cultural Act of 1970, as added by the Agriculture and Consumer Pro- tection Act of 1973 (7 U.S.C. 612c-3)," immediately after " ( 2 ) " and inserting "notice of" immediately after "Administrator or the Secre- tary of". (n) Section 21 is amended by striking out "SEC. 21" and inserting 7 USC 87h. in lieu thereof "SEC. 19". STUDIES o r GRAIN INSPECTION AND W E I G H I N G ; EFFECTIVE DATE SEC. 1605. (a) Section 8(b) of the United States Grain Standards 7 USC 79 note. Act of 1976 (90 Stat. 2874) is amended by— -
91 STAT. 1030 PUBLIC LAW 95-113—SEPT. 29, 1977 (1) inserting in paragraph (3) "(which may include the appli- cation of statistical tolerances for expected variations)" immedi- ately after ''error rates of such agencies"; (2) striking out in paragraph (4) "eighteen months" and inserting in lieu thereof "thirty months"; and (3) striking out in paragraph (5) "two years" and inserting in lieu thereof "three years". (b) Section 27 of the United States Grain Standards Act of 1976 Ante, p. 1025. (90 Stat 2889) is amended by— 7 use 74 note. (1) striking out all that follows "SEC. 27." down through Effective date. "without a designation under the United States Grain Standards Act, as amended by this Act" and inserting in lieu thereof the following: "This Act shall become effective thirty days after enactment hereof; and thereafter no State or other agency or per- son shall provide official inspection or official weighing or supervi- sion of weighing under the United States Grain Standards Act, as amended by this Act, at an export port location without a dele- gation of authority or other authorization under such amended Act, and no agency or person shall provide official inspection serv- ice or official weighing or supervision of weighing under such amended Act in any other area without a designation or other authorization under such amended Act"; (2) inserting "or other authorization under such Act" immedi- ately after "may continue to operate in that area without a dele- gation or designation"; and (3) striking out "and export elevators located at export port locations" in clause (3). MISCELLANEOUS AMENDMENTS SEC. 1606. The United States Grain Standards Act is further amended as follows: 7 use 75. (a) Section 3(i) is amended by striking out "or, upon request of the interested party applying for inspection, the quantity of sacks of grain,". 7 use 77. (I3) Section 5(a) is amended by inserting "or procedures" immedi- ately after "standards" each place it appears therein. 7 use 78. ^Q^ Section 6(a) is amended by striking out "factor information" and inserting in lieu thereof "criteria". 7 use 79. ^^^ Section 7(b) is amended by striking out "or quantity of sacks of grain,". 7 use 79a. ^ ^ Section 7A is amended by inserting in subsections (a), (b), and (e) "or procedures" immediately after "standards". 7 use 84. ^^^ Section 8(f) is amended by inserting "and weighing" immedi- ately after "integrity of the official inspection". 7 use 87. (g) Section 11(b) (4) is amended bj^ inserting "or supervision of weighing" immediately after "official weighing". 7 use 87b. (h) Section 13(a)(6) is amended by striking out "condition, or quantity" and inserting in lieu thereof "or condition". 7 use 87e, (j) Sections 16(b) and 17B are amended by striking out ^'*"^- "Committee on Agriculture and Forestry" each place these words appear therein and inserting in lieu thereof "Committee on Agricul- ture, Nutrition, and Forestry". (j) Section 17B(a) is amended by inserting "and weighing" immediately after "inspection".
PUBLIC LAW 95-113—SEPT. 29, 1977 91 STAT. 1031 CONFORMING AMENDMENTS SEC. 1607. The United States Grain Standards Act of 1976 (90 Stat. 2874 and 2890) is amended as follows: 7 use 84. (a) Section 8(b)(4) is amended by striking out "Committee on Agriculture and Forestry" and inserting in lieu thereof "Committee on Agriculture, Nutrition, and Forestry". (b) Section 27 is amended by inserting "or" immediately after the Ante, pp. 1025, 1030. semicolon at the end of clause (2). 7 u s e 74 note. RETENTION OF DESIGNATIONS FOLLOWING CONVICTIONS SEC. 1608. Section 27 of the United States Grain Standards Act of 1976 (90 Stat. 2890) is amended by inserting immediately bfifore the semicolon at the end of clause (2) the following: " : Provided, That the Administrator may allow such affected agency or person to continue to operate in that area if the Administrator determines that such con- tinued operations are necessary or desirable in carrying out the require- ments of this Act: Provided further, That the Administrator shall, Report to within 30 days after making such determination, submit a report to the congressional Committee on Agriculture of the House of Representatives and the committees. Committee on Agriculture, Nutrition, and Forestry of the Senate detailing the factual bases for such determination". T I T L E XVII—WHEAT AND W H E A T FOODS RESEARCH Wheat and Wheat Foods Research AND NUTRITION EDUCATION ACT and Nutrition Education Act. SHORT TITLE SEC 1701. This title may be cited as the "Wheat and Wheat Foods 7 u s e 3401 note. Research and Nutrition Education Act". FINDINGS AND DECLARATION OF POLICY SEC. 1702. (a) Wheat is basic to the American diet and the Amer- 7 tiSe 3401. loan economy. It is ^rown by thousands of farmers and consumed, in various forms, by millions of people in the United States. (b) The size of the American wheat crop and how it is marketed and ultimately consumed determines whether many Americans receive adequate nourishment. Wheat has a strong impact on the Nation's well-being. Additional research on the optimal use of wheat products can improve the American diet. Consumer education about the nutri- tional value and economic use of wheat products can enhance the national welfare. (c) It has long been recognized that it is in the national interest to have a regular, adequate, and high quality wheat supply. It would be extremely difficult, without an effective coordinated research and nutri- tion education effort, to accomplish this objective. A programed effort of research and nutrition education is of great importance to wheat producers, processors, end product manufacturers, and consumers. (d) It is the purpose of this title and in the public interest to authorize and enable the creation of an orderly procedure, adequately financed through an assessment, for the development and initiation of an effective and continuous coordinated program of research and nutrition education, designed to improve and enhance the quality, and make the most efficient use, of American wheat, processed wheat, and wheat end products to ensure an adequate diet for the people of the
91 STAT. 1032 PUBLIC LAW 95-113—SEPT. 29, 1977 United States. The maximum rate of assessment authorized hereunder represents an infinitesimal proportion of the overall cost of manufac- turing wheat end products. Therefore, such assessment will not signifi- '• cantly affect the retail prices of those products. Furthermore, any price effect will be more than offset by the increased efficiency in end product manufacture and increased consumer acceptance, due to nutritional improvements in wheat products, which may be expected to follow from adoption of a plan under this title. Nothing in this title shall be construed to provide for control of production or otherwise limit the right of individual wheat producers to produce wheat. DEFINITIONS 7 use 3402. SEC. 1703. For the purposes of this title: (a) The term "wheat" means all classes of wheat grains grown in the United States. (b) The term "processed wheat" means the wheat-derived content of any substance (such as cake mix or flour) produced for use as an ingredient of an end product by changing wheat grown within the United States in form or character by any mechanical, chemical, or other means. (c) The term "end product" means any product which contains processed wheat as an ingredient and which is intended, as produced, for consumption as human food, notwithstanding any additional incidental preparation which may be necessary by the ultimate consumer. (d) The term "wheat producer" means any person who grows wheat within the United States for market. (e) The term "processor" means any person who commercially pro- . > -" duces processed wheat within the United States. (f) The term "end product manufacturer" means any person who commercially produces an end product within the United States, but such term shall not include such persons to the extent that they produce end products on the premises where such end products are to be con- sumed by an ultimate consumer, including, but not limited to, hotels, restaurants, and institutions, nor shall such term include persons who produce end products for their own personal, family, or household use. (g) The term "research" means any type of research to advance the nutritional quality, marketability, production, or other qualities of wheat, processed wheat, or end products. (h) The term "nutrition education" means any action to disseminate to the public information resulting from research concerning the eco- nomic value or nutritional benefits of wheat, processed wheat, and end products. (i) The term "Council" means the Wheat Industry Council estab- lished pursuant to section 1706 of this title. (j) The term "Department" means the United States Department of Agriculture. (k) The term "Secretary" means the Secretary of Agriculture of the United States. (1) The term "person" means any individual, partnership, corpora- tion, association, or other entity. (m) The term "United States" means the several States and the District of Columbia, including any territory or possession.
PUBLIC LAW 95-113—SEPT. 29, 1977 91 STAT. 1033 ISSUANCE OF ORDERS SEC. 1704. (a) Whenever the Secretary has reason to believe that Notice and the issuance of an order will tend to effectuate the declared policy of hearing. this title, the Secretary shall give due notice and opportunity for hear- 7 use 3403. ing upon a proposed order. Such hearing may be requested and proposal for an order submitted by an organization certified pursuant to section 1714 of this title, or by any interested person affected by the provisions of this title, including the Secretary. (b) After notice and opportunity for hearing as provided in section 1704(a) of this title, the Secretary shall issue an order if the Secretary finds, and sets forth in such order, upon the evidence introduced at such hearing that the issuance of such order and all the terms and conditions thereof will tend to effectuate the declared policy of this title. PERMISSIVE TERMS I N ORDERS SEC. 1705. Any order issued pureuant to this title shall contain one or more of the following terms and conditions, and, except as provided in section 1706 of this title, no others: (a) providing for the establishment, issuance, effectuation, and Nutrition administration of appropriate plans or projects for nutrition educa- education plans. tion, both within the United States and in international markets with 7 use 3404. respect to wheat, processed wheat, and end products, and for the dis- bursement of necessary funds for such purposes: Provided, That in carrying out any such plan or project, no reference to a private brand or trade name shall be made if the Secretary determines that such refer- ence will result in undue discrimination against wheat, processed wheat, and end products of other persons: Provided further, That no such plans or projects shall make use of unfair or deceptive acts or practices in behalf of wheat, processed wheat, and end products or unfair or deceptive acts or practices with respect to quality, value, or use of any competing product; (b) providing for the establishment and conduct of research or Research and studies with respect to sale, distribution, marketing, utilization, or studies. production of wheat, processed wheat, and end products and the crea- tion of new products thereof to the end that the marketing and utiliza- tion of wheat, processed wheat, and end products may be encouraged, expanded, improved, or made more acceptable, and for the disburse- ment of necessary funds for such purposes; (c) providing that processors, distributors of processed wheat, and Records and end product manufacturers shall maintain and make available for reports. inspection by the Secretary or the Council such books and records as may be required by any order issued pursuant to this title and for the filing of reports by such persons at the time, in the manner, and having the content prescribed by the order, to the end that information shall be made available to the Council and to the Secretary which are appro- priate or necessary to the effectuation, administration, or enforce- ment of this title, or of any order or regulation issued pursuant to this title: Provided, That all information so obtained shall be kept con- Confidential fidential by all officers and employees of the Department, the Council, information. and by all officers and employees of contracting agencies having access to such information, and only such information so furnished or acquired as the Secretary deems relevant shall be disclosed by them, and then only in a suit or administji-ative hearing brought at the direc- tion, or upon the request, of the Sedretary, or to which the Secretary or any officer of the United States i^ a party, and involving the order
91 STAT. 1034 PUBLIG LAW 95-113—SEPT. 29, 1977 with reference to which the information so to be disclosed was fur- nished or acquired. Nothing in this section shall be deemed to prohibit (1) the issuance of general statements based upon the reports of the number of persons subject to an order or statistical data collected therefrom, which statements do not identify the information furnished by any person, (2) the publication, by direction of the Secretary, of general statements relating to refunds made by the Council during any specific period, or (3) the publication by direction of the Secretary of the name of any person who has been adjudged to have violated any order, together with a statement of the particular provisions of the Penalty. order violated by such person. Any such officer or employee of the Department, the Council, or a contracting agency violating the provi- sions of this clause shall, upon conviction, be subject to a fine of not more than $1,000 or to imprisonment for not more than one year, or both, and if an officer or employee of the Council or Department shall be removed from office; Assessment (d) providing for exemption of specified end products, or types or exemption. categories thereof, from the assessments required to be paid under section 1706 of this title under such conditions and procedures as may be prescribed in the order or rules and regulations issued thereunder; and (e) terms and conditions incidental to and not inconsistent with the terms and conditions specified in this title and necessary to effectuate the other provisions of such order. REQUIRED TERMS IN ORDERS 7 use 3405. SEC. 1706. Any order issued pursuant to this title shall contain such terms and conditions as to provide— Wheat Industry (a) for the establishment and appointment by the Secretary of Council, a Wheat Industry Council which shall consist of not more than establishment twenty members and alternates therefor, and for the definition of and powers. its powers and duties which shall include only the powers enu- merated in this section, and shall specifically include the powers to (1) administer such order in accordance with its terms and provisions, (2) make rules and regulations to effectuate the terms and provisions of such order, (3) receive, investigate, and report to the Secretary complaints of violations of such order, and (4) Term. recommend to the Secretary amendments to such order. The term of an appointment to the Council shall be for two years with no member serving more than three consecutive terms, except that initial appointments shall be proportionately for two-year and three-year terms; Membership. (b) that the Council and alternates therefor shall be composed of wheat producers or representatives of wheat producers, proc- essors or representatives of processors, end product manufacturers or representatives of end product manufacturers, and consumers or representatives of consumers appointed by the Secretary from nominations submitted by eligible organizations or associations certified pursuant to section 1714 of this title, or, if the Secretary determines that a substantial number of wheat producers, proces- sors, end product manufacturers, or consumers are not members of, or their interests are not represented by any such eligible organiza- tions or associations then from nominations made by such wheat producers, processors, end product manufacturers, and consumers in the manner authorized by the Secretary, so that the representa- tion of wheat producers, processors, end product manufacturers,
PUBLIC LAW 95-113—SEPT. 29, 1977 91 STAT. 1035 and consumers on the Council shall be equal: Provided, That in making such appointments, the Secretary shall take into account, to the extent practicable, the geographical distribution of wheat producers, processors, end product manufacturers, and consumers throughout the United States; (c) that the Council shall, subject to the provisions of clause Research and (g) of this section, develop and submit to the Secretary for nutrition approval any research plans or projects and nutrition education education plans. plans or projects resulting from research, and that any such plan or project must be approved by the Secretary before becoming effective; (d) that the Council shall, subject to the provisions of clause Budgets, (g) of this section, submit to the Secretary for approval budgets submittal to on a fiscal period basis of its anticipated expenses and disburse- Secretary of Agriculture. ments in the administraton of the order, including probable costs of research and nutrition education projects;. (e) that, except as provided in sections 1705(d) and 1707 of End product this title, each end product manufacturer shall pay to the Coun- manufacturers, cil, pursuant to regulations issued under the order, an assess- processed wheat assessment. ment based on the number of hundredweights of processed wheat purchased, including intra-company transfers of processed wheat, for use in the manufacture of end products, from processors, dis- tributors, or (in the case of intra-company transfers) related com- panies or divisions of the same company. Such assessment shall be used for such expenses and expenditures defined above, includ- ing provisions for a reasonable reserve, and any referendum and administrative costs incurred by the Secretary and the Council under this title, as the Secretary finds are reasonable and likely to be incurred under the order during any period specified by the Secretary. The circumstances under which such a purchase or intra-company transfer will be deemed to have occurred will be prescribed by the Secretary in the order. Such assessment shall be calculated and set aside on the books and records of the end product manufacturer at the time of each purchase or intra-com- pany transfer of processed wheat, and shall be remitted to the Council in the manner prescribed by the order. In order to enable end product manufacturers to calculate the amount of proc- essed wheat they have purchased, persons selling or transferring processed wheat in combination with other ingredients to such end product manufacturers for use in the manufacture of end products, shall disclose to such end product manufacturers, as pre- scribed by the Secretary in the order, the amount or proportion of processed wheat contained in such products. The rate of assess- Assessment, ral;e ment shall not exceed five cents per hundredweight of processed limitation. wheat purchased or transferred. The Secretary may maintain Jurisdiction. a suit against any person subject to such assessment for the col- lection of such assessment, and the several district courts of the United States are hereby vested with jurisdiction to entertain such suits regardless of the amount in controversy; (f) that the Council shall maintain such books and records, Record which shall be available to the Secretary for inspection and audit, maintenance. and prepare and submit such reports from time to time, to the Secretary as the Secretary may prescribe, and for appropriate accounting by the Council, with respect to the receipt and dis- bursement of all funds entrusted to it; (g) that the Council, with the approval of the Secretary, may Contracts. enter into contracts or agreements for the development and con-
91 STAT. 1036 PUBLIC LAW 95-113—SEPT. 29, 1977 duct of the activities authorized under the order pursuant to terms and conditions specified in clauses (a) and (b) of section 1705 of this title and for the payment of the cost thereof with funds collected through the assessments pursuant to the order. Any such conti-act or agreement shall provide that the con- tractors shall develop and submit to the Council a plan or project together with a budget or budgets which shall show estimated costs to be incurred for such plan or project, and that any such plan or project shall become effective upon the approval of the Secre- tary, and further, shall provide that the contracting party shall keep accurate records of all of its transactions and make periodic reports to the Council of activities conducted and an accounting for funds received and expended, and such other reports as the Secretary may require; Investment of (h) that the Council, with the approval of the Secretary, may assessment invest, pending disbursement pursuant to a plan or project, funds funds. collected through assessments authorized under this title in, and only in, obligations of the United States or any agency thereof, in general obligations of any State or any political subdi- vision thereof, in any interest-bearing account or certificate of deposit of a bank which is a member of the Federal Reserve Sys- tem, or in obligations fully guaranteed as to principal and interest by the United States; Lobbying (i) that no funds collected by the Council under the order shall restriction. in any manner be used for the purpose of influencing governmental policy or action, except as provided by clause (a) (4) of this sec- tion ; and Expenses, (j) that the Council members, and alternates therefor, shall reimbursement. serve without compensation, but shall be reimbursed for their rea- sonable expenses incurred in performing their duties as members of the Council. EXEMPTION 7 use 3406. SEC. 1707. Any end product manufacturer who is a retail baker shall "Retail baker." be exempt from the provisions of this title. For the purposes of this sec- tion, the term "retail baker" shall be deemed to include all end product manufacturers who sell end products directly to the ultimate consumer: Provided^ That such term shall not include any end product manufac- turer who derives less than 10 per centum of gross end product sales revenues from sales to ultimate consumers or who derives 10 per centum or more of gross food or food products sales revenues from the sale of such products manufactured or produced by others. REQUIREMENT OF REFERENDUM 7 use 3407. SEC. 1708. The Secretary shall conduct a referendum as soon as prac- ticable among end product manufacturers not exempt hereunder who, during a representative period preceding the date of the referendum, as determined by the Secretary, have been engaged in the manufacture of end products, for the purpose of ascertaining whether the issuance of an order is approved or favored by such manufacturers. Qualified end product manufacturers may register with the Secretary by mail to vote in such referendum during a period ending not less than thirty List of eligible days prior to the date of the referendum. Within ten days thereafter, voters, the Secretary shall determine which end product manufacturers are publication. eligible to vote in such referendum and cause to be published the list of such eligible voters. The Secretary shall issue ballots to all such persons who have so registered and been declared eligible to vote. ISTo
PUBLIC LAW 95-113—SEPT. 29, 1977 91 STAT. 1037 order issued pursuant to this title shall be eflfective unless the Secretary determines (1) that votes were cast by at least 50 per centum of such registered end product manufacturers, and (2) that the issuance of such order is approved or favored by not less than two-thirds of the end product manufacturers voting in such referendum or by a majority of Processed wheat the end product manufacturers voting in such referendum if such certification. majority manufactured end products containing not less than two- thirds of the total processed wheat contained in all end products manufactured by those voting in the referendum, during the repre- sentative period defined by the Secretary: Provided^ That at the time of the registration provided under this section each end product manufac- turer so registering shall certify to the Secretary the amount of processed wheat contained in the end products manufactured by such end product manufacturer during such representative period. The Secretary shall be reimbursed from assessments collected by the Coun- cil for any expenses incurred for the conduct of the referendum. Eligible voter lists and ballots cast in the referendum shall be retained Voters lists and by the Secretary for a period of not less than twelve months after they ballots, retention. are cast for audit and recount in the event the results of the referendum are challenged and either the Secretary or the courts determine a recount and retabulation of results is appropriate. REFUND SEC. 1709. (a) Subsequent to the approval by the Secretary of the Publication in annual budget of the Council or amendments thereto, a summary of Federal Register. such budget or amendments thereto, including a brief general descrip- 7 use 3408. tion of the proposed research and nutrition education programs con- templated therein, shall be published in the Federal Register. All end product manufacturers not exempt hereunder shall have sixty days - from the date of such publication within which to elect, under such conditions as the Secretary may prescribe, by so indicating to the Council in writing, by registered or certified mail, to reserve the right to seek refunds under subsection (b) of this section. Only those end product manufacturers who make such an election, under the described procedure, shall be eligible for refunds of assessments paid during the one-year period immediately following the expiration of such sixty- day period. (b) Notwithstanding any other provision of this title, any end prod- Refund demands uct manufacturer who has been sulDJect to and has paid an assessment, but who has reserved the right, under subsection (a) of this section, to seek a refund, and who is not in favor of supporting the programs as provided for herein, shall have the right to demand and receive from the Council a refund of such assessment: Provided, That such demand shall be made by such end product manufacturer in accordance with regulations, and on a form and within a time period, prescribed by the Council and approved by the Secretary and upon submission of proof satisfactory to the Council that the end product manufacturer paid the assessment for which refund is sought, and any such refund shall be made within sixty days after demand is received therefor. PETITION AND REVIEW SEC. 1710. (a) Any person subject to any order may file a written 7 USC 3409. petition with the Secretary, stating that any such order or any provi- sion of such order or any obligation imposed in connection therewith is not in accordance with law and praying for a modification thereof or for an exemption therefrom. The petitioner shall thereupon be Hearing.
91 STAT. 1038 PUBLIC LAW 95-113—SEPT. 29, 1977 given an opportunity for a hearing upon such petition, in accordance with regulations issued by the Secretary. After such hearing, the Secretary shall make a ruling upon the prayer of such petition which shall be nnal, if in accordance with law. Review (b) The district courts of the United States in any district in which jurisdiction. such person is an inhabitant, or has his principal place of business, are hereby vested with jurisdiction to review such ruling, provided a com- plaint for that purpose is filed within twenty days from the date of the entry of such ruling. Service of process in such proceedings may be had upon the Secretary by delivering a copy of the complaint to the Secretary, If the court determines that such ruling is not in accordance with law, it shall remand such proceedings to the Secretary with direc- tions either (1) to make such ruling as the court shall determine to be in accordance with law, or (2) to take such further proceedings as, in its opinion, the law requires. ENFORCEMENT Jurisdiction. SEC. 1711. (a) The several district courts of the United States are 7 use 3410. vested with jurisdiction specifically to enforce, and to prevent and restrain any person from violating any order or regulation made or issued pursuant to this title. Any civil action authorized to be brought under this title shall be referred to the Attorney General for appro- priate action: Provided. That nothing in this title shall be construed as requiring the Secretary to refer to the Attorney General minor violations of this title whenever the Secretary believes that the administration and enforcement of the program would be adequately served by suitable written notice or warning to any person committing such violation. Penalty. (b) Any end product manufacturer or other person who willfully violates any provision of any order issued by the Secretary under this title, or who willfully fails or refuses to remit any assessment or fee duly required thereunder, shall be liable to a penalty of not more than $1,000 for each such offense which shall accrue to the United States and may be recovered in a civil suit brought by the United States. (c) The remedies provided in subsections (a) and (b) of this section shall be in addition to, and not exclusive of, the remedies otherwise provided at law or in equity. SUSPENSION AND TERMINATION OF ORDERS 7 use 3411. SEC. 1712. (a) The Secretary shall, whenever he finds that any order issued under this title, or any provision thereof, obstructs or does not tend to effectuate the declared policy of this title, terminate or suspend the operation of such order or such provision thereof. Referendum. (b) The Secretary may conduct a referendum at any time, and shall hold a referendum on request of 10 per centum or more of the number of end product manufacturers subject to the order, to deter- mine whether such manufacturers favor the termination or sus- pension of the order, and the Secretary shall suspend or terminate such order within six months after the Secreta,ry determines that suspension or termination of the order is approved or favored by a majority of the end product manufacturers voting in such referen- dum who, during a representative period determined by the Secretary, have been engaged in the manufacture of end products or by end product manufacturers who produced end products con-
PUBLIC LAW 95-113—SEPT. 29, 1977 91 STAT. 1039 taining more than 50 per centum of the total processed Wheat contained in all end products manufactured during such period by the end product manufacturers voting in the referendum. (c) The termination or suspension of any order, or anjr provision thereof, shall not be considered an order within the meaning of this title. INVESTIGATIONS: POWER TO SUBPENA AND TAKE OATHS AND AETIRMATIONS: AID OF COURTS SEC. 1713. The Secretary may make such investigations as the Sec- 7 USC 3412. retary deems necessary for the effective administration of this title or to determine whether any person STibject to the provisions of this title has engaged or is about to engage in any acts or practices which con- stitute or will constitute a violation of any provisions of this title, or of any order, or rule or regulation issued under this title. For the purpose of such investigation, the Secretary is empowered to admin- ister oaths and affirmations, subpena witnesses, compel their attendance, take evidence and require the production of any books, papers, and documents which are relevant to the inquirj\ Such attendance of witnesses and the production of any such records may be required from any place in the United States. In case of con- tumacy by, or refusal to obey a subpena to, any person, the Sexjretary may invoke the aid of any court of the United States within the jurisdiction of which such investigation or proceeding is carried on, or where such person resides or carries on business, in requiring the attendance and testimony of witnesses and the production of books, papers, and documents; and such court may issue an order requiring such person to appear before the Secretary, there to produce records, if so ordered, or to give testimony touching the matter under investi- gation. Any failure to obey such order of the court may be punished by such court as a contempt thereof. All process in any such case may be served in the judicial district whereof such pei-son is an inhabitant or wherever such person may be found. CERTIFICATION OF ORGANIZATIONS SEC. 1714. The eligibility of any organization to represent wheat 7 USC 3413. producers, processors, end product manufacturers, or consumers to request the issuance of an order under section 1704(a) of this title and to participate in the making of nominations under section 1706 (b) of this title, shaU be certified by the Secretary. The Secretary shall certify any organization which the Secretary finds to be eli^ble under this section and the Secretary's determination as to eligibility shall be final. Certification shall be based, in addition to other avail- Report, able information, upon a factual report submitted by the organization which shall contain information deemed relevant and specified by the Secretary for the making of such determination, including, but not limited to, the following: (a) geographic territory covered by the organization's active membership, (b) nature and size of the organization's active membership, including, in the case of an organization other than a consumer organization, the proportion of the total number of active wheat producers, processors, or end product manufacturers represented by the organization.
91 STAT. 1040 PUBLIC LAW 95-113—SEPT. 29, 197' (o) evidence of stability and permanency of the organization, (d) sources from which the organization's operating funds are derived, (B) functions of the organization, and (f) the organization's ability and willingness to further the Non-consumer aims and objectives of this title: Provided^ That the primary organization, consideration in determining the eligibility of an organization, primary other than a consumer organization, shall be whether its mem- eligibility bership consists primarily of wheat producers, processor, or end consideration. product manufacturers who produce a substantial volume of wheat, processed wheat, or end products, respectively, and whether the organization is based on a primary or overriding interest in the production, processing, or end manufacture of wheat or wheat products, and the nutritional attributes thereof: Consumer Provided further, That the primary consideration in determining organization, the eligibility of a consumer organization shall be whether (1) primary a principal purpose of the organization is to promote consumer eligibility interests, consumer research, or consumer education, (2) such consideration. organization has a broadly representative constituency of con- sumer's, witli active membership participation on a regular basis, and (3) the organization has demonstrated to the Secretary's sat- isfaction its commitment to the achievement of the objectives of this title. EFFECT ON OTHER PROGRAMS 7 use 3414. SEC. 1715. JSTothing in this title shall be construed to preempt or interfere with the workings of any other program relating to wheat or wheat foods research or nutrition education organized and operat- ing under the laws of the United States or any State. REGULATIONS 7 use 3415. SEC. 1716. The Secretary is authorized to issue such regulations as may be necessary to carry out the provisions of this title. PROVISIONS A P P L I C A B L E TO AMENDMENTS 7 use 3416. SEC. I7l7. The provisions of this title applicable to orders shall be applicable to amendments to orders. SEPARABILmr 7 use 3401 note. SEC. 1718. If any provision of this title or the application thereof to any person or circumstances is held invalid, the validity of the remainder of the title and of the application of such provision to other persons and circumstances shall not be affected thereby. AUTHORIZATION 7 use 3417. SEC. 1719. There are hereby authorized to be appropriated out of any money in the Treasury not otherwise appropriated such funds as are necessary to carry out the provisions of this title. The funds so appropriated shall not be available for payment of the expenses or expenditures of the Council in administering any provisions of any order issued pursuant to the terms of this title.
PUBLIC LAW 95-113—SEPT. 29, 1977 91 STAT. 1041 TITLE XVIII—DEPARTMENT OF AGRICULTURE ADVISORY COMMITTEES PURPOSES SEC.1801. The purposes of this title are to— 7 USC 2281. (1) require strict financial and program accounting by advisory committees o f the Department of Agriculture; (2) assure balance and objectivity in the membership of such advisory committees; and (3) prevent the formation or continuation of unnecessary advisory committees by the Department of Agriculture. DEFINITIONS SEC. 1802. When used in this title— ^ 7 USC 2282. (1) the term "Secretary" means the Secretary of Agriculture of the United States; (2) the term "Department of Agriculture" means the United States Department of Agriculture; and (3) the term "advisory committee" means any committee, board, commission, council, conference, panel, task force, or other similar group, or any subcommittee or other subgroup thereof which is established or utilized by the Department of Agriculture in the interest of obtaining advice or recommendations for the President or the Department of Agriculture, except that such term excludes any committee which (A) is composed wholly of full-time officers or employees of the Federal Government, (B) is established by statute or reorganization plan, or (C) is established by the President. fc ESTABLISHMENT OF ADVISORY COMMITTEES SEC. 1803. No advisory committee shall be established by the 7 USC 228.H. Department of Agriculture unless the Secretary determines that— c (1) the advisory committee will serve an essential function; (2) the proposed membership for the advisory committee represents a balance of differing views; (3) the proposed work and goals of the advisory committee cannot be carried out by an existing advisory committee; (4) the proposed budget of the advisory committee reflects the reasonably anticipated costs of performing the function of the advisory committee; and (5) the establishment of the advisory committee is in the public interest. ADDITIONAL DUTIES OF T H E SECRETARY SEO. 1804. In addition to any responsibilities which the Secretary 7 USC 2284. has under the Federal Advisory Committee Act, as amended, or other 5 USC app. i. provision of law with respect to advisory committees, the Secretary shall ensure that all advisory committees— (1) comply with all provisions of law relating to advisory committees, including this title; (2) submit all reports and recommendations in written form; (3) retain a written record of any responses made by the Department of Agriculture to the recommendations of the advi- sory committees; and
91 STAT. 1042 PUBLIC LAW 95-1 IS—SEPT. 29, 1977 (4) do not exceed their proposed budgets by 10 per centum or $500, whichever is greater, without receiving prior approval for such additional expenditures from the Secretary as provided under section 1808 of this title. MEMBERSHIP ON ADVISORY COMMITTEES 7 use 2285. SEC. 1805. (a) No person other than an officer or employee of the Department of Agriculture shall serve on an advisory committee for more than six consecutive years. (b) No person shall simultaneously serve on more than one advisory committee unless authorized by the Secretary. (c) All advisory committees shall, to the extent practicable, have— (1) a balanced membership reflecting the differing views of the groups substantially affected by the matters to be considered by such advisory committees; and (2) ethnic, racial, and sexual balance. (d) Each member of an advisory committee shall use his or her full name and principal place of residence, and shall provide the Secretary with (1) the names of persons or companies by whom he or she is employed, (2) his or her principal occupation, and (3) his or her major sources of income. Such information shall be forwarded to the appro- priate committees of Congress having legislative jurisdiction or over- sight responsibility with respect to the agency within the Department of Agriculture which established the advisory committee, as part of the annual report provided for in section 1807 of this title. (e) Not more than one officer or employee of any coiyoration or other entity, including all subsidiaries and affiliates thereof, shall serve on the same advisory committee at any one time, unless excepted by the Secretary. ADVISORY COMMITTEE CHARTER REQUIREMENTS OPERATING COSTS 7 use 2286. gjjc. 1806. In addition to complying with other requirements of 5 use app. 1. section 9(c)(G) of the Federal Advisory Committee Act, each advi- sory committee shall provide the following information to the Secre- tary when it files its charter— (1) a statement that the estimate of annual operating costs developed pursuant to section 9(c) (G) of the Federal Advisory Committee Act is inclusive of all private and public moneys to be spent by or on behalf of the advisory committee; and (2) specific estimates of— (A) the amount of Federal funds that will be used annually to support directly or indirectly the operation of the advisory committee; (B) the dollar value of the time and the expenses that will be incurred annually by Federal agencies and employees in assisting in the operation of the advisory committee; (C) the travel expenses, including per diem or subsistence in lieu thereof, that will be incurred annually by advisory committee members and Department of Agriculture employ- ees in attending meetings of the advisory committee, includ- ing travel performed in support of the advisory committee's operation; and (D) all expenses that will be paid annually by sources out- side the Government, including, but not limited to, expenses
PUBLIC LAW 95-113—SEPT. 29, 1977 91 STAT. 1043 borne by the committee members or other individuals, such as their employers, corporations, organizations, associations, or labor organizations. A N N U A L REPORT SEC. 1807. (a) In addition to the other requirements of section 10 7 use 2287. of the Federal Advisory Committee Act, as amended, each advisory 5 u s e app. 1. committee within the Department of Agriculture, including all advi- sory committees as defined in section 1802(3) of this title and all other advisory committees within the Department of Agriculture estab- lished by statute or reorganization plan or established by the Presi- dent, shall prepare, at least annually, a written report which shall contain— (1) a description of all recommendations and suggestions it has provided to any executive department, agency, or other authority of the United States, or any State, or any individual during the immediately preceding year; (2) a description of the response it has made during the immedi- ately preceding year to specific recommendations and suggestions from any executive department, agency, or other authority of the United States, or any State, or any individual; (3) an itemization, in detail, of all costs incurred by it during Itemized costs. the immediately preceding year, including, but not limited to— (A) public money spent on transportation for advisory committee members and other Department of Agriculture employees engaged in the business of the advisory committee, including individuals who are not members of the advisory committee; (B) per diem allowances for temporary duty expenses for advisory committee members and for Department of Agricul- ture employees engaged in the work of the advisory committee who are not members of the advisory committee; (C) salaries and consultant fees paid to the advisory com- mittee members, guest presenters, or other advisors or assist- ants to the advisory committee at meetings of the advisory committee; (D) the value of Department of Agriculture staff support time spent on the business of the advisory committee; (E) the cost of leasing, renting, or purchasing equipment, meeting rooms, and supplies for the advisory committee ; (F) any additional cost involved in meetings of the advi- sory committee, including receptions, luncheons, dinners, and entertainment; (G) miscellaneous expenses, with a separate category for any major expense item peculiar to the advisory committee; and (H) such other expenses or cost items as may be relevant to full disclosure of the costs of operating the advisory committee; and (4) a list of the members of the advisory committee and, where applicable, the background information on each member required to be submitted under section 1805 of this title, (b) The report required by this section shall be transmitted to the Transmittal to Secretary, the appropriate committees of Congress having legislative Secretary and jurisdiction or oversight with respect to the agency within the Depart- congressional committees.
91 STAT. 1044 PUBLIC LAW 95-113—SEPT. 29, 1977 ment of Agriculture which established the advisory committee, and the Library of Congress. A copy of such report shall also be available at the central location of each such advisory committee's files. BUDGET PROHIBITIONS 7 use 2288. SEC. 1808. (a) No advisory committee shall expend funds in excess of its estimated annual operating costs by more than 10 per centum or $500, whichever is greater, unless it files a request therefor with the Secretary prior to any such expenditure which shall specify the use to which such funds will be put together with a comprehensive explana- tion as to why such expenditures were not known at the time of the annual estimate of operating costs, and the Secretary approves such request. (b) The Secretary shall not approve the release of any funds imder the Secretary's control to an advisory committee for any such overrun expenditure unless the Secretary finds that such funds are essential to the performance of the advisory committee's mission and the need for such funds could not have been reasonably anticipated. TERMINATION OF ADVISORY COMMITTEES 7 use 2289. SEC. 1809. (a) The Secretary shall terminate any advisory commit- tee upon a finding that any such advisory committee— (1) has expended funds in excess of its estimated annual operat- ing costs by more than 10 per centum or $500, whichever is greater, without having obtained the prior approval of the Secretary pur- suant to the provisions of section 1808 of this title; (2) has failed to file in a timely manner all reports required under the provisions of the Federal Advisory Committee Act, as 5 use app. 1. amended, or this title ; (3) has failed to meet for two consecutive years; (4) has failed to issue any written reports other than reports required under the Federal Advisory Committee Act, as amended, and this title for two consecutive years; (5) has failed to comply with any provision of the Federal Advisory Committee Act, as amended, or this title; (6) is responsible for functions which otherwise would be or should be performed by Federal employees; or (7) does not serve or has ceased to serve an essential public function. (b) Any advisory committee terminated under the provisions of this section may be reestablished only under the procedures set out in sec- 5 use app. 1. tion 9 of the Federal Advisory Committee Act. If an advisory com- mittee terminated under the provisions of this section is reestablished, all records, reports, and the complete files of such advisory committee so terminated shall be maintained together with the files of such reestablished advisory committee.
PUBLIC LAW 95-113—SEPT. 29, 1977 91 STAT. 1045 TITLE XIX—EFFECTIVE DATE SBO. 1901. Except as otherwise provided herein, the provisions of 7 use 1307 note. this Act shall become effective October 1,1977. Approved September 29, 1977. a 1 LEGISLATIVE HISTORY: HOUSE REPORTS: No. 95-348 accompanying H.R. 7171 (Comm. on Agriculture) and No. 95-599 (Comm. of Conference). SENATE REPORTS: No. 95-180 (Comm. on Agriculture, Nutrition, and Forestry) and No. 95-418 (Comm. of Conference). CONGRESSIONAL RECORD, Vol. 123 (1977): May 23, 24, considered and passed Senate. July 20-22, 25-28, considered and passed House, amended, in lieu of H.R. 7171. Sept. 9, Senate agreed to conference report. Sept. 16, House agreed to conference report. WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS, Vol. 13, No. 40: Sept. 29, Presidential statement.