[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[S. 1623 Introduced in Senate (IS)]

103d CONGRESS
  1st Session
                                S. 1623

  To require the Secretary of Agriculture to carry out procedures for 
debarment of persons engaged in nonprocurement programs and activities 
with the Department of Agriculture who have violated the regulations of 
                   a program, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

             November 4 (legislative day, November 2), 1993

   Mr. Leahy introduced the following bill; which was read twice and 
    referred to the Committee on Agriculture, Nutrition and Forestry

_______________________________________________________________________

                                 A BILL


 
  To require the Secretary of Agriculture to carry out procedures for 
debarment of persons engaged in nonprocurement programs and activities 
with the Department of Agriculture who have violated the regulations of 
                   a program, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``USDA Debarment Act of 1993''.

SEC. 2. FINDINGS.

    Congress finds that--
            (1) dating back to 1986, several Secretaries of Agriculture 
        have failed to comply with Executive Order No. 12549, which was 
        intended to ensure that the Federal Government did not continue 
        to do business with companies that violate the regulations of a 
        program of any Executive agency;
            (2) several companies that have violated the regulations of 
        programs within the Department of Agriculture (such as programs 
        related to international agricultural trade, food and 
        nutrition, commodity storage, and livestock trade) continue to 
        participate in the programs with respect to which the companies 
        have violated the regulations; and
            (3) companies that have violated, and continue to violate, 
        regulations governing Department programs have received 
        billions of dollars, and continue to monetarily benefit.

SEC. 3. DEFINITIONS.

    As used in this Act:
            (1) Department.--The term ``Department'' means the United 
        States Department of Agriculture.
            (2) Executive agency.--The term ``Executive agency'' has 
        the same meaning as is provided in section 105 of title 5, 
        United States Code.
            (3) Final determination.--The term ``final determination'' 
        means the final decision of the Secretary in a nonprocurement 
        debarment proceeding involving a person as to whether the 
        person has committed a material violation--
                    (A) including a final decision regarding the term 
                of the debarment; but
                    (B) not including a decision as to whether there is 
                sufficient reason for initiation of a nonprocurement 
                debarment proceeding.
            (4) Material violation.--The term ``material violation'' 
        means an action or series of actions taken by a person that 
        constitute a substantial and material violation of a regulation 
        of a program of the Department, as determined by the Secretary.
            (5) Nonprocurement debarment.--The term ``nonprocurement 
        debarment'' means an action to bar a person from programs and 
        activities involving Federal financial and nonfinancial 
        assistance offered by the Department, but not including--
                    (A) Federal procurement programs and activities;
                    (B) contracts entered into by the Commodity Credit 
                Corporation under the price support operations and 
                other programs of the Corporation with persons in the 
                capacities of the persons as agricultural producers;
                    (C) conservation programs administered by the 
                Secretary; and
                    (D) individuals and households who participate in 
                nutrition assistance programs administered by the 
                Secretary.
            (6) Person.--The term ``person'' means any individual, 
        corporation, partnership, association, or other legal entity, 
        however organized, who is participating, or has participated, 
        in a program or activity of the Department.
            (7) Secretary.--The term ``Secretary'' means the Secretary 
        of Agriculture.

SEC. 4. NONPROCUREMENT DEBARMENT.

    (a) Initiation of Proceedings.--Except as provided in subsection 
(c), if the Secretary obtains notice of the alleged occurrence of a 
material violation of a regulation of a program or activity of the 
Department and the Secretary determines under subsection (b) that there 
is sufficient reason for initiation of a nonprocurement debarment 
proceeding the Secretary shall initiate a nonprocurement debarment 
proceeding against the person not later than 180 days after the 
determination.
    (b) Sufficient Reason for Initiation of Nonprocurement Debarment 
Proceedings.--Subject to subsection (c), sufficient reason for 
initiation of a nonprocurement debarment proceeding includes, as 
determined by the Secretary--
            (1) the violation of a Federal or State law relevant to the 
        integrity or orderly administration of the program or activity 
        of the Department in which the person is participating; or
            (2) the commission of an action that may constitute a 
        material violation of a regulation applicable to a program or 
        activity of the Department.
    (c) Exception.--If the Secretary determines that a decision to 
initiate a nonprocurement debarment proceeding cannot be made within 
the 180-day period referred to in subsection (a) because of the need to 
further investigate the actions of a person relating to the alleged 
material violation, the Secretary may have such additional time as the 
Secretary considers necessary to make a decision, but not more than 180 
days beyond the original 180-day period.

SEC. 5. NONPROCUREMENT DEBARMENT PROCEEDINGS.

    (a) Notice and Hearing.--Subsequent to the determination that there 
is sufficient reason for initiation of a nonprocurement debarment 
proceeding under section 4, the Secretary shall provide the person 
against whom the proceeding has been initiated with--
            (1) full notice of the allegations;
            (2) the opportunity for an informal hearing not on the 
        record, in which the person is provided appropriate due process 
        procedures, as determined by the Secretary, including an 
        opportunity to rebut any allegation of a material violation;
            (3) notice of the finding of the Secretary on whether 1 or 
        more material violations were committed by the person; and
            (4) notice of the appropriate period of debarment.
    (b) Period of Debarment.--Subject to subsection (e), a person 
determined to have committed a material violation shall be ineligible 
to participate in the program or activity in which the material 
violation occurred during the 5-year period beginning on the date of 
the determination.
    (c) Previous Debarment.--Subject to subsection (e), a person who 
has been previously debarred by another Executive agency, or has been 
previously debarred under a nonprocurement debarment proceeding under 
this Act, who is determined by the Secretary to have committed a 
material violation based on a separate set of factual occurrences, 
shall be permanently debarred from participating in any program or 
activity of the Department.
    (d) Exhaustion of Administrative Remedies.--Prior to seeking 
judicial review in a court of competent jurisdiction, a person against 
whom a nonprocurement debarment proceeding has been initiated shall--
            (1) exhaust all administrative procedures prescribed by the 
        Secretary; and
            (2) receive notice of the final determination of the 
        Secretary.
    (e) Good Faith.--If the Secretary determines that a person, against 
whom there is sufficient reason for initiation of a nonprocurement 
debarment proceeding, or against whom a finding of material violation 
has already been made, committed the act that is the subject of the 
nonprocurement debarment proceeding in good faith, the Secretary may 
reduce or eliminate the applicable periods of debarment specified in 
subsections (b) and (c).
    (f) Coordination.--To the maximum extent practicable, the Secretary 
shall consolidate and coordinate any nonprocurement debarment action 
taken under this Act with other adverse actions within the Department, 
including other nonprocurement debarment actions.
    (g) Precedence.--This Act shall take precedence over any 
administrative procedure for debarment that affects the Department, to 
the extent that the procedure conflicts with this Act.

SEC. 6. REPORT ON CONSISTENT DEBARMENT POLICY.

    Not later than 120 days after the date of enactment of this Act, 
the Director of the Office of Management and Budget shall advise the 
appropriate committees of Congress and the Comptroller General of the 
United States as to the appropriateness and usefulness of a policy for 
procurement debarment and a policy for nonprocurement debarment that 
are applicable all Executive agencies.

SEC. 7. REGULATIONS.

    (a) In General.--Not later than 30 days after the date of enactment 
of this Act, the Secretary shall issue regulations to ensure compliance 
with such provisions of Executive Order No. 12549 as are not in 
conflict with this Act.
    (b) Rulemaking Proceeding.--Not later than 30 days after the date 
of enactment of this Act, the Secretary shall initiate a rulemaking 
proceeding to implement this Act. The rulemaking proceeding shall--
            (1) identify all agencies, programs, and activities that 
        are affected by this Act;
            (2) specify what is sufficient reason for initiation of a 
        nonprocurement debarment proceeding;
            (3) specify the procedures for the proceeding;
            (4) specify guidelines for the finding of a material 
        violation; and
            (5) specify the administrative action to be taken against a 
        person found to have committed a material violation.

SEC. 8. TERMINATION OF AUTHORITY.

    The authority provided by this Act shall terminate on September 30, 
1999.

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