[Senate Report 114-206]
[From the U.S. Government Publishing Office]
114th Congress } { Report
SENATE
2d Session } { 114-206
_______________________________________________________________________
AGRICULTURE REAUTHORIZATIONS ACT OF 2015
__________
R E P O R T
of the
COMMITTEE ON AGRICULTURE, NUTRITION,
AND FORESTRY
on
H.R. 2051
[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]
February 8, 2016.--Ordered to be printed
______
U.S. GOVERNMENT PUBLISHING OFFICE
59-010 PDF WASHINGTON : 2016
SENATE COMMITTEE ON AGRICULTURE, NUTRITION, AND FORESTRY
ONE HUNDRED FOURTEENTH CONGRESS
SECOND SESSION
PAT ROBERTS, Kansas, Chairman
THAD COCHRAN, Mississippi DEBBIE STABENOW, Michigan
MITCH McCONNELL, Kentucky PATRICK J. LEAHY, Vermont
JOHN BOOZMAN, Arkansas SHERROD BROWN, Ohio
JOHN HOEVEN, North Dakota AMY KLOBUCHAR, Minnesota
DAVID PERDUE, Georgia MICHAEL BENNET, Colorado
JONI ERNST, Iowa KIRSTEN GILLIBRAND, New York
THOM TILLIS, North Carolina JOE DONNELLY, Indiana
BEN SASSE, Nebraska HEIDI HEITKAMP, North Dakota
CHUCK GRASSLEY, Iowa ROBERT P. CASEY, Jr., Pennsylvania
JOHN THUNE, South Dakota
114th Congress } { Report
SENATE
2d Session } { 114-206
======================================================================
AGRICULTURE REAUTHORIZATIONS ACT OF 2015
_______
February 8, 2016.--Ordered to be printed
_______
Mr. Roberts, from the Committee on Agriculture, Nutrition, and
Forestry, submitted the following
R E P O R T
[To accompany H.R. 2051]
The Committee on Agriculture, Nutrition, and Forestry, to
which was referred the bill (H.R. 2051) to amend the
Agricultural Marketing Act of 1946 to extend the livestock
mandatory price reporting requirements, and for other purposes,
having considered the same, reports favorably thereon with an
amendment (in the nature of a substitute) and recommends that
the bill (as amended) do pass.
Purpose of the Bill
The purpose of this legislation is to reauthorize expiring
authority for livestock mandatory price reporting, the National
Forest Foundation, and federal grain inspection. The
legislation also makes improvements to increase effectiveness,
certainty, and transparency in the livestock mandatory price
reporting and federal grain inspection programs for U.S.
farmers and other market participants.
The reported bill provides authority for the National
Forest Foundation through fiscal year 2018 and authority for
the livestock mandatory price reporting and federal grain
inspection programs through fiscal year 2020.
Background and Needs
Title I--Mandatory Price Reporting
Under the authority of the Livestock Mandatory Reporting
Act of 1999 (P.L. 106-78) and the Agricultural Marketing Act of
1946 (AMA), meat packers are required to report the prices they
pay for cattle, swine, and lambs to the United States
Department of Agriculture (USDA) as well as the prices they
receive for the sale of wholesale beef, pork, and lamb. In
addition, USDA is required to issue daily, weekly and monthly
reports that detail the various transactions occurring in
livestock and meat markets. This information provides producers
and market participants a more transparent view of marketplace
conditions, allowing them to make informed business decisions.
The current authorization for livestock mandatory price
reporting expires on September 30, 2015. The reported bill
reauthorizes the program through September 30, 2020.
The bill also makes technical improvements to swine and
lamb reporting including: creating a negotiated formula
purchase price category for swine reporting to be composed of
trades currently categorized in the swine or pork market
formula purchase category, shifting late in the day swine
transactions to the reports issued the following morning, and
creating definitions for lamb importer and lamb packer. These
changes will facilitate capturing additional trades that are
occurring between swine and lamb producers and packers, and
lamb imports coming in the U.S. market, which will provide a
more descriptive landscape of the market for swine and lambs.
Lastly, the legislation directs the Secretary to conduct a
study on the workability of livestock mandatory price reporting
in advance of the next reauthorization. In conducting the
study, the Secretary is directed to enter into conversations
with organizations representing beef, lamb and pork producers,
packers, and other market participants. This dialogue will
serve to identify potential legislative and regulatory
improvements that can be made to the program.
Title II--National Forest Foundation Act Reauthorization
The National Forest Foundation, originally chartered by
Congress in 1992, serves as a non-profit partner of the U.S.
Forest Service to leverage public and private funding to
restore and enhance the Nation's federal forests and
grasslands. The National Forest Foundation has been funded
through the annual appropriations process despite its authority
expiring in 1997. The reported bill extends the National Forest
Foundation authority through fiscal year 2018 with
discretionary funding at $3 million per year, which is
consistent with recent annual appropriations funding levels.
Authority for the National Forest Foundation will expire at the
end of fiscal year 2018, making its duration consistent with
the authorization periods for most forestry programs in the
Farm Bill.
Title III--United States Grain Standards Act Reauthorization
The Secretary, acting through the Federal Grain Inspection
Service, is responsible for establishing official marketing
standards for U.S. grains and oilseeds and managing inspection.
In 2014, mandatory federal inspection lapsed at an export grain
facility in Vancouver, Washington and trade was disrupted for
36 days. The reported bill reauthorizes various provisions in
the United States Grain Standards Act (USGSA) relating to
federal grain inspection through fiscal year 2020. The statute
was last reauthorized in 2005 with authorities set to expire on
September 30, 2015. In addition to reauthorization, the bill
also improves predictability and transparency for U.S.
commodity producers, exporters, and trading partners with
adding increased reporting and certification requirements.
Summary of Provisions
Title I--Mandatory Price Reporting
The legislation reauthorizes livestock mandatory price
reporting for five years, through September 30, 2020. The bill
also makes several technical improvements to livestock
mandatory price reporting for swine and lamb.
With respect to swine, the legislation amends Section 231
of the AMA to create a new ``negotiated formula purchase''
price category. A ``negotiated formula purchase'' is defined
as: ``a swine or pork market formula purchase under which (A)
the formula is determined by negotiation on a lot-by-lot basis;
and (B) the swine are scheduled for delivery to the packer not
later than 14 days after the date on which the formula is
negotiated and swine are committed to the packer''. The bill
also amends Section 232 of the AMA to require that ``late in
the day reporting'' be included in the next morning's reports.
For lamb, the legislation directs the Secretary to revise
USDA regulations regarding the terms ``packer'' and
``importer.'' The bill defines the term ``packer'' to apply to
``any entity with 50 percent or more ownership in a facility''
and to include a ``federally-inspected plant which slaughtered
or processed the equivalent of an average of 35,000 head of
lambs per year during the immediately preceding 5 calendar
years.'' The term may also include any other processing plant
that doesn't meet that requirement if the Secretary determines
the plant should be considered a packer after considering its
capacity. The reported bill also defines the term ``importer''
to include ``only those importers that imported an average of
1,000 metric tons of lamb meat products per year.''
Lastly, the bill requires the Secretary to conduct a study
in conjunction with organizations representing producers,
packers and other market participants on the livestock
mandatory price reporting program. The study is to be submitted
to Congress no later than March 1, 2018.
Title II--National Forest Foundation Act Reauthorization
The reported bill extends the authority for the National
Forest Foundation through fiscal year 2018 with a discretionary
funding level of $3 million per year.
Title III--United States Grain Standards Act Reauthorization
The reported bill reauthorizes various provisions of the
USGSA through 2020. The bill also makes several important
improvements to federal grain inspection and weighing in order
to increase transparency and predictability in service.
The legislation creates certainty by mandating the use of
emergency waiver authority. The Managers intend for the
Secretary to waive official weighing and inspection
requirements both in cases of emergency as well as other
circumstances as long as the waiver does not impair the
underlying objectives of the statute and the buyers and sellers
agree and provide documentation of the agreement to the
Secretary. This waiver requirement is intended to provide
certainty to trading partners as well as U.S. suppliers.
The reported bill removes outdated requirements to ensure
that grain entering an export facility is treated in the same
manner, regardless of the mode of transportation.
The Managers recognize that the Secretary has a permanent
statutory obligation to ensure that there is continuity of
export inspection operations regardless if the services are
performed by federal employees, a delegated agency, or some
other means. To guarantee this responsibility is met, the bill
establishes transparent disruption notification and reporting
requirements. Specifically, it requires a delegated state to
notify the Secretary 72 hours in advance of a temporary
disruption of export inspection or weighing. The advance
notification is to allow the Secretary time to maintain export
inspection or weighing services. Upon notification, the bill
requires the Secretary to immediately take actions to address
the disruption and resume inspections or weighing. The
Secretary is required to notify the Committee on Agriculture of
the House of Representatives and Committee on Agriculture,
Nutrition, and Forestry of the Senate within 24 hours of a
disruption occurring. The Secretary must describe the
disruption and identify any actions necessary so that
inspections and weighing may resume. The Chair and Ranking
Member have confirmed that the Secretary has broad authority to
take action, including hiring security personnel or other third
party services that are appropriate. Finally, the bill requires
the Secretary to provide daily updates for the duration of any
disruption.
The reported bill creates a transparent certification
process for existing delegated state agencies that carry out
export inspection. It requires the Secretary to establish the
certification process within one year pursuant to statutory
criteria, including personnel, training, fee collection, and
recordkeeping. In such process, the Secretary is required to
provide for public comment and public notice of whether the
certification has been granted and on what basis the decision
was made. The Managers intend for the certification process to
be implemented and the first reviews of delegated states
complete in a timely manner prior to 2020. The bill requires
recertification of each delegated state every five years.
For designated agencies, the bill requires the Secretary to
consult with customers of designated entities to ensure
satisfaction with performance and address any service issues
identified during this process. The bill also increases the
duration of designation authority for domestic inspection and
weighing services from three to five years.
The bill removes the geographic boundary restriction for
domestic inspection and weighing if both the applicant for
service and the current officially designated agency for the
geographic area are in agreement.
The reported bill requires that inspection and weighing
fees based on export tonnage be based on a more predictable,
rolling five-year average of export tonnage volumes. It also
requires the Secretary to annually review and adjust fees in
order to maintain a three to six month operating reserve.
The bill reauthorizes the following provisions in the USGSA
until September 30, 2020: authority for delegated and
designated state agencies to collect fees, the cap on
administrative and supervisory costs, authority for
appropriations, and the authority for the Grain Inspection
Advisory Committee.
Outside of the USGSA, the reported bill requires the
Secretary to issue a report within 180 days of date of
enactment to both the authorizing and appropriations Committees
about the 2014 disruption in Federal inspection of grain
exports. The report must include: (1) specific factors which
led to the disruption at the Port of Vancouver in the summer of
2014, (2) a description of the port facility, the security
situation and available resources, as well as any other
significant factors, and (3) any changes in policy that the
Secretary has implemented to ensure that a similar disruption
in inspection of grain exports does not occur at the Port of
Vancouver or other locations in the future.
The bill also requires the Secretary, in consultation with
the Office of the U.S. Trade Representative, to issue a report
to the Committee on Agriculture of the House of Representatives
and Committee on Agriculture, Nutrition, and Forestry of the
Senate that describes: (1) the policy barriers to U.S. grain
producers in countries, including Canada, that do not offer
official grading for U.S. grain or provide only the lowest
designation for U.S. grain, including an analysis of their
possible inconsistencies with trade obligations, and (2) any
actions the Administration is taking to remedy such barriers
and put U.S. producers on equal footing with their counterparts
in countries imposing such barriers.
Legislative History
On June 9, 2015, H.R. 2051 was passed by the House of
Representatives by voice vote on a motion to suspend the rules.
The bill was referred to the Committee on Agriculture,
Nutrition, and Forestry in the Senate.
On September 17, 2015, the Committee held a business
meeting to consider H.R. 2051. Chairman Roberts offered an
amendment in the nature of a substitute which was adopted by
unanimous consent. In addition to livestock mandatory price
reporting, the amendment contained two additional bills (H.R.
2394 and H.R. 2088) previously passed by the House of
Representatives by voice vote on a motion to suspend the rules.
The amendment text related to grain standards act
reauthorization is substantially similar to S. 1417, which was
reported favorably by the Committee by voice vote on May 21,
2015. The Committee then ordered H.R. 2051, as amended,
reported favorably by voice vote.
Estimated Costs
In accordance with paragraph 11(a) of rule XXVI of the
Standing Rules of the Senate and section 403 of the
Congressional Budget Act of 1974, the Committee provides the
following cost estimate, prepared by the Congressional Budget
Office:
H.R. 2051--Agriculture Reauthorizations Act of 2015
Summary: H.R. 2051 would amend and extend through 2020 the
U.S. Department of Agriculture's (USDA's) authority to require
certain meat packers to report on the supply, demand, and
prices of certain livestock. The bill also would authorize the
appropriation of matching funds for administrative and project
expenses to the National Forest Foundation through 2018; that
authorization expired on September 30, 1996. Finally, H.R. 2051
would authorize the appropriation of such sums as may be
necessary for the Grain Inspection, Packers, and Stockyards
Administration (GIPSA) to carry out activities under the United
States Grain Standards Act and extend GIPSA's authority to
collect and spend fees for certain inspection and weighing
services.
CBO estimates that implementing H.R. 2051 would cost $151
million over the 2016-2020 period, assuming appropriation of
the necessary amounts. Enacting the bill would affect direct
spending; therefore, pay-as-you-go procedures apply. However,
CBO estimates that such effects would not be significant in any
year. Enacting the bill would not affect revenues.
H.R. 2051 contains an intergovernmental mandate as defined
in the Unfunded Mandates Reform Act (UMRA) because it would
preempt state and local laws. CBO estimates the cost of
complying with the mandate would be small and would fall well
below the threshold established in UMRA for intergovernmental
mandates ($77 million in 2015, adjusted annually for
inflation).
H.R. 2051 would impose a private-sector mandate, as defined
in UMRA, on grain exporters by extending GIPSA's authority to
collect fees. It also would impose a mandate on certain
packers, processors, and importers of livestock by extending
and amending mandatory reporting requirements related to
cattle, swine, and lambs. Based on information from USDA and
industry experts, CBO estimates that the aggregate cost of the
mandates would fall below the annual threshold established in
UMRA for private-sector mandates ($154 million in 2015,
adjusted annually for inflation).
Estimated cost to the Federal Government: The estimated
budgetary effect of H.R. 2051 is shown in the following table.
The costs of this legislation fall within budget functions 300
(natural resources) and 350 (agriculture).
----------------------------------------------------------------------------------------------------------------
By fiscal year, in millions of dollars
--------------------------------------------------
2016 2017 2018 2019 2020 2016-2020
----------------------------------------------------------------------------------------------------------------
CHANGES IN SPENDING SUBJECT TO APPROPRIATION
Title I--Mandatory Price Reporting
Estimated Authorization Level............................ 8 7 7 7 7 36
Estimated Outlays........................................ 8 7 7 7 7 36
Title II--National Forest Foundation
Authorization Level...................................... 3 3 3 0 0 9
Estimated Outlays........................................ 3 3 3 0 0 9
Title III--Grain Inspection
Estimated Authorization Level............................ 20 21 21 22 22 106
Estimated Outlays........................................ 20 21 21 22 22 106
Total
Estimated Authorization Level........................ 31 31 31 29 29 151
Estimated Outlays.................................... 31 31 31 29 29 151
----------------------------------------------------------------------------------------------------------------
Basis of estimate: For this estimate, CBO assumes that H.R.
2051 will be enacted by the end of calendar year 2015, and that
the necessary amounts will be appropriated in each of the next
five years.
Title I--Mandatory Price Reporting
The legislation would extend until September 30, 2020, the
authority of the Secretary of Agriculture to require certain
livestock packers, processors, and importers, to continue
reporting prices and supply and demand information to the
government on a daily and weekly basis. USDA's Agricultural
Marketing Service (AMS) processes and provides this information
to the public. Based on information from AMS, CBO estimates
that continuing to provide these reports to the public would
cost $7 million a year.
H.R. 2051 also would require the Secretary, in consultation
with relevant producers and packers, to identify legislative or
regulatory recommendations to improve the collection and
dissemination of information under the livestock reporting
program. Based on the cost of similar work, CBO estimates that
this study would cost $1 million in 2016.
In total, CBO estimates that implementing title I would
cost $36 million over the 2016-2020 period, assuming
appropriation of the necessary amounts.
Title II--National Forest Foundation Act Reauthorization
The act would authorize the appropriation of $3 million a
year through 2018 to support the National Forest Foundation.
The foundation is a nonprofit corporation established by
federal law that awards grants to maintain recreational
resources, such as trails, and to restore watersheds, wildlife
habitats, and plant species within national forests and
grasslands. The foundation also carries out activities to
educate individuals about the National Forest System.
Assuming appropriation of the authorized amounts, CBO
estimates that implementing the legislation would cost $9
million over the 2016-2018 period.
Title III--United States Grain Standards Act Reauthorization
The legislation would reauthorize, through 2020, annual
appropriations for GIPSA activities under the United States
Grain Standards Act. Based on the current funding for the
agency (in 2015, GIPSA received an appropriation of $20
million), CBO estimates that continuing its activities would
cost $106 million over the 2016-2020 period. That estimate is
based on the assumption that the agency's current funding level
would be adjusted for anticipated inflation.
The act also would extend GIPSA's authority to collect and
spend fees for inspection and weighing services for grain
destined for export. GIPSA establishes such fees to recover the
costs of providing those services. CBO estimates that
offsetting receipts from such fees and associated spending
total about $45 million annually and that the provision would
not have a significant net effect on direct spending in any
year.
Pay-As-You-Go considerations: The Statutory Pay-As-You-Go
Act of 2010 established budget-reporting and enforcement
procedures for legislation affecting direct spending or
revenues. CBO estimates that any net change in direct spending
under H.R. 2051 would be insignificant over the 2015-2025
period. Enacting the bill would not affect revenues.
Impact on state, local, and tribal governments: Under
current law, the Department of Agriculture's program for price
reporting preempts state and local laws that are in addition
to, or inconsistent with, any requirements of the program.
Because H.R. 2051 would reauthorize the program and thus extend
the preemption that would otherwise expire on September 30,
2015, the bill would impose an intergovernmental mandate as
defined in UMRA. While the preemption would limit the
application of state and local laws, it would impose no duty
that would result in significant additional spending.
Consequently, CBO estimates that the costs would fall well
below the threshold established in the UMRA for
intergovernmental mandates ($77 million in 2015, adjusted
annually for inflation).
Estimated impact to the private sector: H.R. 2051 contains
private-sector mandates as defined in UMRA, but CBO estimates
that the aggregate cost of complying with the mandates would
fall below the annual threshold established in UMRA for
private-sector mandates ($154 million in 2015, adjusted
annually for inflation). The act would impose a private-sector
mandate on exporters of grain by extending GIPSA authority to
collect fees for grain inspection and weighing services.
Exporters are required to use those services. Based on
information from GIPSA, CBO estimates that the fees paid by
grain exporters would amount to $50 million to $60 million
annually. The act also would impose mandates on certain
packers, processors, and importers of livestock by extending
and amending mandatory reporting requirements related to
cattle, swine, and lambs. Based on information from USDA and
industry experts, CBO estimates that the cost of those mandates
would total about $1 million annually.
Previous CBO estimates: On June 4, 2015, CBO transmitted a
cost estimate for S. 1417, the United States Grain Standards
Act Reauthorization Act of 2015, as ordered reported by the
Senate Committee on Agriculture, Nutrition, and Forestry, on
May 21, 2015. On May 13, 2015, CBO transmitted a cost estimate
for H.R. 2088, the United States Grain Standards Act
Reauthorization Act of 2015, as ordered reported by the House
Committee on Agriculture on April 30, 2015. Title III of H.R.
2051, S. 1417, and H.R. 2088, have similar provisions and CBO's
estimates of the budgetary effects are the same.
On May 29, 2015, CBO transmitted a cost estimate for H.R.
2394, the National Forest Foundation Reauthorization Act of
2015, as ordered reported by the House Committee on Agriculture
on May 20, 2015. Title II of H.R. 2051 and H.R. 2394 are
similar, and CBO's estimates of the budgetary effects are the
same.
On May 21, 2015, CBO transmitted a cost estimate for H.R.
2051, the Mandatory Price Reporting Act of 2015, as reported by
the House Committee on Agriculture on April 30, 2015. Title I
of the House and Senate versions of H.R. 2051 are similar, and
CBO's estimates of the budgetary effects are the same.
Estimate prepared by: Federal Costs: Jim Langley and Jeff
LaFave; Impact on State, Local, and Tribal Governments: J'nell
Blanco Suchy; Impact on the Private Sector: Amy Petz.
Estimate approved by: H. Samuel Papenfuss, Deputy Assistant
Director for Budget Analysis.
Regulatory Impact Statement
In compliance with subsection (b)(2) of paragraph 11 of
rule XXVI of the Standing Rules of the Senate, it is necessary
to dispense with the requirements of paragraph (1) of that
subsection in order to expedite the business of the Senate. The
Committee does not expect that significant new regulatory
burdens will result from the regulations issued pursuant to the
reported bill. The regulations issued will prescribe and define
implementation of the changes authorized in the reported bill.
Number of Persons Covered
H.R. 2051 would make improvements to increase
effectiveness, certainty, and transparency in existing
programs. Accordingly, the number of persons covered should be
largely consistent with the current levels of individuals and
businesses covered by the provisions of law addressed in the
bill. To the extent there are new individuals or businesses
covered, such expansion is generally supported by the persons
or entities added.
Economic Impact
The reported bill will not have an adverse economic impact
on the United States. To the contrary, the legislation makes
improvements to increase the effectiveness, certainty, and
transparency in the livestock mandatory price reporting and
federal grain inspection programs for U.S. farmers and other
market participants. The legislation also supports restoration
and enhancement of the Nation's federal forest and grassland
resources. By supporting quality jobs in the U.S. and economic
activity in rural America, the bill will have a positive impact
on the national economy.
Privacy
The reported bill will not have a negative impact on the
personal privacy of individuals.
Paperwork
The Committee does not anticipate a major increase in
paperwork burdens resulting from the reported bill.
Congressionally Directed Spending
In compliance with paragraph 4(b) of rule XLIV of the
Standing Rules of the Senate, the Committee does not believe
that the reported bill contains any congressionally directed
spending.
Section-by-Section Analysis
Section 1. Short title
Section 1 designates the short title for the legislation as
the ``Agriculture Reauthorizations Act of 2015.''
Section 101. Extension of livestock mandatory reporting
Section 101 amends Section 260 of the AMA and Section 942
of the Livestock Mandatory Reporting Act of 1999 to extend the
authority for livestock mandatory price reporting through
September 30, 2020.
Section 102. Swine reporting
Section 102 makes several technical improvements for
livestock mandatory price reporting for swine. First,
subsection (a) amends Section 231 of the AMA to add a
definition of ``negotiated formula purchase.'' Subsection (b)
then amends Section 232 of the AMA to require that the
Secretary publish information about hogs sold through
negotiated purchases and negotiated formula purchases in USDA's
daily reports. Subsection (b) also requires that any
information reported late in the day be included in the next
morning's reports.
Section 103. Lamb reporting
Section 103 requires the Secretary to update the
regulations for livestock mandatory price reporting within 180
days of enactment to define the terms ``packer'' and
``importer.''
Section 104. Study on livestock mandatory reporting
Section 104 requires the Secretary to conduct a study on
livestock mandatory reporting in consultation with cattle,
swine and lamb producers, packers, and other market
participants. The study shall: (1) analyze current marketing
practices in cattle, swine and lamb markets, (2) identify
legislative or regulatory recommendations made by producers,
packers and other market participants, (3) analyze the price
and supply information reporting services at USDA, and (4)
address any other issues that the Secretary considers
appropriate. The Secretary is required to submit a report by
March 1, 2018 to the Committee on Agriculture of the House of
Representatives and the Committee on Agriculture, Nutrition,
and Forestry of the Senate on the findings of the study.
Section 201. National Forest Foundation Act reauthorization
Section 201 amends the National Forest Foundation Act to
extend the authority for matching funds and the authorization
of appropriations through fiscal year 2018. Subsection (c) then
makes certain technical changes to the Act.
Section 301. Reauthorization of United States Grain Standards Act
Section 301 reauthorizes various provisions of the USGSA
through 2020 and makes several changes to federal inspection
and weighing.
Subsection (a) amends Section 5(a)(1) of the USGSA to
require the Secretary to waive official weighing and inspection
requirements both in cases of emergency as well as other
circumstances as long as the waiver does not impair the
underlying objectives of the statute and the buyers and sellers
agree and provide documentation of the agreement to the
Secretary.
Subsection (a) also amends Section 5(a)(2) to remove
outdated requirements to ensure that grain going into an export
facility is treated in the same manner, regardless of the mode
of transportation. In addition, subsection (a) adds new
language to Section 5 of the USGSA that would establish
disruption notification and reporting requirements in order to
increase transparency. The Secretary is required to take
immediate action to address disruption in service and resume
inspection or weighing. Further, the Secretary is required to
submit a report to the Committee on Agriculture of the House of
Representatives and the Committee on Agriculture, Nutrition,
and Forestry of the Senate within 24 hours of a disruption that
includes a description of the disruption and any actions
necessary to resume inspection or weighing. Finally, the
Secretary is required to then provide daily updates until
inspection or weighing services at the site of disruption have
resumed.
Subsection (b) amends Section 7(e) of the USGSA by adding
new language that creates a certification process for existing
delegated state agencies. The Secretary is required to
establish a certification process within one year of date of
enactment pursuant to existing statutory criteria, including
personnel, training, fee collection and recordkeeping. The
Secretary must review delegation of authority every five years,
provide for public comment on each certification review, and
give public notice of the outcome of such review. Subsection
(b) also requires delegated states to provide 72 hours of
advance notice of their intent to discontinue inspection or
weighing services. Whether a state has met this requirement is
then to be considered by the Secretary in administering the
delegation of authority to a state.
With respect to designated agencies, subsection (b) amends
Section 7(f)(1) of the USGSA by adding a requirement that the
Secretary periodically consult with customers of the designated
agency to review the performance of the agency and work with
the agency to address any concerns identified. And, the length
of the designation of authority is extended from three years to
five years.
Subsection (b) of the reported bill amends Sections 7(f)(2)
and 7A(i)(2) of the USGSA to remove the geographic boundary
restriction for domestic inspection and weighing if certain
criteria are met.
Lastly, subsection (b) of the legislation amends Section
7(g) of the USGSA to require that the portion inspection fees
based on export tonnage be based on a rolling five-year average
of export tonnage volumes. Subsection (b) also requires the
Secretary to annually review and adjust inspection fees to
maintain a three to six month operating reserve. Subsection (c)
then amends Section 7A of the USGSA to make these same two
changes for weighing fees.
Subsection (d) amends Section 7D of the USGSA to authorize
the 30 percent cap on administrative and supervisory costs
through 2020.
Subsection (e) amends Section 8(b) of the USGSA to extend
any licenses issued under the USGA from three years to five
years.
Subsection (f) amends Section 19 of the USGSA to
reauthorize the authorization of appropriations through 2020.
Section (g) amends Section 21 of the USGSA to reauthorize
the Advisory Committee through 2020.
Section 302. Report on disruption in Federal inspection of grain
exports
Section 302 of the legislation requires the Secretary to
issue to the Committee on Agriculture, Nutrition, and Forestry
of the Senate, the Committee on Agriculture of the House of
Representatives, the Subcommittee on Agriculture, Rural
Development, Food and Drug Administration, and Related Agencies
of the Committee on Appropriations of the Senate, and the
Subcommittee on Agriculture, Rural Development, Food and Drug
Administration, and Related Agencies of the Committee on
Appropriations of the House of Representatives a report on the
2014 disruption in Federal inspection of grain exports within
180 days of enactment of this legislation. The Secretary is
required to include: (1) specific factors which led to the
disruption at the Port of Vancouver in the summer of 2014, (2)
a description of the port facility, the security situation and
available resources, as well as other significant factors, and
(3) any changes in policy that the Secretary has implemented to
ensure that a similar disruption in inspection of grain exports
does not occur at the Port of Vancouver or other locations in
the future.
Section 303. Report on policy barriers to grain producers
Section 303 requires the Secretary, in consultation with
the United States Trade Representative, to submit to the
Committee on Agriculture of the House of Representatives and
the Committee on Agriculture, Nutrition, and Forestry of the
Senate a report within 180 days of enactment of this
legislation. The Secretary is required to include: (1) the
policy barriers to U.S. grain producers in countries that do
not offer official grading for U.S. grain or provide only the
lowest designation for U.S. grain, and (2) any actions the
Administration is taking to remedy such barriers and put U.S.
producers on equal footing.
Changes in Existing Law
In compliance with paragraph 12 of rule XXVI of the
Standing Rules of the Senate, the Committee states that, in its
opinion, it is necessary to dispense with the requirements of
that paragraph in order to expedite the business of the Senate.
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