[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2493 Introduced in House (IH)]







104th CONGRESS
  1st Session
                                H. R. 2493

       To make modifications to international food aid programs.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            October 18, 1995

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

_______________________________________________________________________

                                 A BILL


 
       To make modifications to international food aid programs.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Food For Peace Reauthorization Act 
of 1995''.

SEC. 2. FOOD ASSISTANCE TO DEVELOPING COUNTRIES.

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

``SEC. 3. FOOD ASSISTANCE TO DEVELOPING COUNTRIES.

    ``It is the sense of Congress that--
            ``(1) the United States should maintain its role of world 
        leadership in promoting food security and economic development 
        in developing countries; and
            ``(2) the President should encourage other advanced nations 
        to consider appropriate levels of food assistance to meet the 
        legitimate needs of developing countries.''.

SEC. 3. TRADE AND DEVELOPMENT ASSISTANCE.

    Section 101 of the Agricultural Trade Development and Assistance 
Act of 1954 (7 U.S.C. 1701) is amended--
            (1) by striking ``developing countries'' each place it 
        appears and inserting ``developing countries and private 
        entities''; and
            (2) in subsection (b)--
                    (A) by striking ``To carry out'' and all that 
                follows through ``section 2, the'' and inserting 
                ``The''; and
                    (B) by inserting ``and entities'' before the period 
                at the end.

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

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

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

    ``(a) Priority.--In selecting agreements to be entered into under 
this title, the Secretary shall give priority to agreements providing 
for the export of agricultural commodities to developing countries 
that--
            ``(1) have the demonstrated potential to become commercial 
        markets for competitively priced United States agricultural 
        commodities;
            ``(2) are undertaking measures for economic development 
        purposes to improve food security and agricultural development, 
        alleviate poverty, and promote broad-based equitable and 
        sustainable development; and
            ``(3) demonstrate the greatest need for food.
    ``(b) Private Entities.--An agreement entered into under this title 
with a private entity shall require such security, or such other 
provisions as the Secretary determines necessary, to provide reasonable 
and adequate assurance of repayment of the financing extended to the 
private entity.
    ``(c) Agricultural Market Development Plan.--
            ``(1) In general.--If there is in effect for a country a 
        market development plan approved by the Secretary, for the 
        purposes of the priority set forth in subsection (a), the 
        Secretary shall deem that country to have the demonstrated 
        potential to become a commercial market for competitively 
        priced United States agricultural commodities. However, not 
        more than 50 percent of the agricultural commodities sold under 
        this title during a fiscal year shall be granted the priority 
        because this deeming rule applies.
            ``(2) Requirements.--To be approved by the Secretary, the 
        agricultural market development plan shall--
                    ``(A) be submitted by a country or private entity 
                in conjunction with an agricultural trade organization;
                    ``(B) describe a project or program, designed with 
                the cooperation of the agricultural trade organization, 
                for the development and expansion of United States 
                agricultural commodity markets in the appropriate 
                developing country;
                    ``(C) use funds raised from the sale of 
                agricultural commodities received under agreements 
                under section 101;
                    ``(D) be implemented and administered in 
                coordination with the agricultural trade organization; 
                and
                    ``(E) contain additional requirements determined 
                necessary by the Secretary.
            ``(3) Agricultural trade organization.--For purposes of 
        this subsection, the term `agricultural trade organization' 
        means a United States agricultural trade organization that 
        promotes the export and sale of United States agricultural 
        commodities and that does not stand to profit directly from 
        specific sales of agricultural commodities.''.

SEC. 5. TERMS AND CONDITIONS OF SALES.

    Section 103 of the Agricultural Trade Development and Assistance 
Act of 1954 (7 U.S.C. 1703) is amended--
            (1) in subsection (a)(2)(A)--
                    (A) by striking ``a recipient country to make'' and
                    (B) by striking ``such country'' and inserting 
                ``the appropriate country'';
            (2) in subsection (c), by striking ``less than 10 nor''; 
        and
            (3) in subsection (d)--
                    (A) by striking ``recipient country'' and inserting 
                ``recipient''; and
                    ((B) by striking ``7 years'' and inserting ``5 
                years''.

SEC. 6. USE OF LOCAL CURRENCY.

    Section 104 of the Agricultural Trade Development and Assistance 
Act of 1954 (7 U.S.C. 1704) is amended--
            (1) in subsection (a), by striking ``recipient country'' 
        and inserting ``recipient''; and
            (2) in subsection (c)--
                    (A) by striking ``recipient country'' and inserting 
                ``appropriate developing country'' each place it 
                appears; and
                    (B) by striking ``recipient countries'' and 
                inserting ``appropriate developing countries''.

SEC. 7. PRIVATE ENTITIES.

    The Agricultural Trade Development and Assistance Act of 1954 (7 
U.S.C. 1701 et seq.) is amended--
            (1) by striking ``a private voluntary organization or 
        cooperative'' each place it appears in section 202(d) and 
        subsections (a) and (d) of section 203 and inserting ``a 
        private entity, private voluntary organization, or 
        cooperative'';
            (2) by striking ``private voluntary organizations and 
        cooperatives'' each place it appears in sections 203(b) and 
        306(a)(5) and inserting ``private entities, private voluntary 
        organizations, and cooperatives'';
            (3) in the section heading of section 203, by striking 
        ``private voluntary organizations and cooperatives'' and 
        inserting `` private entities, private voluntary organizations, 
        and cooperatives'';
            (4) in section 203(c), by striking ``A private voluntary 
        organization or cooperative'' and inserting ``A private entity, 
        private voluntary organization, or cooperative''; and
            (5) in section 501(a)(4), by striking ``private voluntary 
        organizations, cooperatives,'' and inserting ``private 
        entities, private voluntary organizations, cooperatives,''.

SEC. 8. PROVISION OF AGRICULTURAL COMMODITIES.

    Section 202(e) of the Agricultural Trade Development and Assistance 
Act of 1954 (7 U.S.C. 1722(e)) is amended--
            (1) in the subsection heading, by inserting 
        ``Intergovernmental Organizations,'' after ``Support for'';
            (2) in paragraph (1)--
                    (A) by striking ``$13,500,000'' and inserting 
                ``$28,000,000''; and
                    (B) by striking ``private voluntary organizations 
                and cooperatives to assist such organizations and 
                cooperatives'' and inserting ``eligible organizations 
                described in subsection (d), to assist those 
                organizations'';
            (3) in paragraph (2), by striking ``a private voluntary 
        organization or cooperative'' and inserting ``an 
        intergovernmental organization, private entity, private 
        voluntary organization, or cooperative''; and
            (4) in paragraph (3), by striking ``a private voluntary 
        organization or cooperative, the Administrator may provide 
        assistance to that organization or cooperative'' and inserting 
        ``an eligible organization described in subsection (d), the 
        Administrator may provide assistance to that eligible 
        organization''.

SEC. 9. EFFECTIVE USE OF COMMODITIES.

    Section 202(f) of the Agricultural Trade Development and Assistance 
Act of 1954 (7 U.S.C. 1722(f) is amended--
            (1) by striking the period at the end of paragraph (6) and 
        inserting ``; and''; and
            (2) by adding at the end the following:
            ``(7) be permitted to carry out a program under this 
        title--
                    ``(A) in a foreign country in which the Agency for 
                International Development does not have a mission, 
                office, or other presence; or
                    ``(B) that is not part of the developmental 
                strategy prepared by such Agency for the country in 
                which the program is carried out.''

SEC. 10. MONETIZATION.

    Section 203 of the Agricultural Trade Development and Assistance 
Act of 1954 (7 U.S.C. 1723) is amended--
            (1) in subsection (a), by inserting ``, or in a country in 
        the same region'' after ``in the recipient country'';
            (2) in subsection (b)--
                    (A) by inserting ``or in countries in the same 
                region'' after ``in the recipient country''; and
                    (B) by striking ``10 percent'' and inserting ``15 
                percent'';
            (3) in subsection (c), by inserting ``or within a country 
        in the same region'' after ``within the recipient country''.

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

    Section 204(a) of the Agricultural Trade Development and Assistance 
Act of 1954 (7 U.S.C. 1724(a)) is amended--
            (1) in paragraph (1), by striking ``amount that'' and all 
        that follows through the period at the end and inserting 
        ``amount that for each of fiscal years 1996 through 2002 is not 
        less than 2,025,000 metric tons.''; and
            (2) in paragraph (2), by striking ``amount that'' and all 
        that follows through the period at the end and inserting 
        ``amount that for each of fiscal years 1996 through 2002 is not 
        less than 1,550,000 metric tons.''.

SEC. 12. USE OF VALUE ADDED COMMODITIES.

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

SEC. 13. FOOD AID CONSULTATION GROUP.

    (a) Membership.--Section 205(b)(2) of the Agricultural Trade 
Development and Assistance Act of 1954 (7 U.S.C. 1725(b)(2)) is amended 
by striking ``International Affairs and Commodity Programs'' and 
inserting ``Agriculture for Farm and Foreign Agricultural Services''.
    (b) Expiration Date.--Section 205(f) of the Agricultural Trade 
Development and Assistance Act of 1954 (7 U.S.C. 1725(f)) is amended by 
striking ``1995'' and inserting ``2002''.

SEC. 14. FOOD FOR DEVELOPMENT.

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

SEC. 15. COMMODITY DETERMINATIONS.

    Section 401 of the Agricultural Trade Development and Assistance 
Act of 1954 (7 U.S.C. 1731) is amended--
            (1) by striking subsections (a) through (d) and inserting 
        the following:
    ``(a) Availability of Commodities.--No agricultural commodity shall 
be available for disposition under this Act if the Secretary determines 
that the disposition would reduce the domestic supply of the commodity 
below the supply needed to meet domestic requirements and provide 
adequate carryover (as determined by the Secretary), unless the 
Secretary determines that some part of the supply should be used to 
carry out urgent humanitarian purposes under this Act.'';
            (2) by redesignating subsections (e) and (f) as subsections 
        (b) and (c), respectively; and
            (3) in subsection (c) (as so redesignated), by striking 
        ``(e)(1)'' and inserting ``(b)(1)''.

SEC. 16. GENERAL PROVISIONS.

    Section 403 of the Agricultural Trade Development and Assistance 
Act of 1954 (7 U.S.C. 1733) is amended--
            (1) in subsection (c)--
                    (A) by inserting ``or private entities, as 
                appropriate,'' after ``commitments from countries''; 
                and
                    (B) by striking ``for use'' and inserting ``or 
                use''; and
            (2) in subsection (f), by inserting ``or private entities, 
        as appropriate,'' after ``from countries''.

SEC. 17. AGREEMENTS.

    Section 404 of the Agricultural Trade Development and Assistance 
Act of 1954 (7 U.S.C. 1734) is amended--
            (1) in subsection (a), by inserting ``with foreign 
        countries'' after ``Before entering into agreements'';
            (2) in subsection (b)(2)--
                    (A) by inserting ``with foreign countries'' after 
                ``with respect to agreements entered into''; and
                    (B) by inserting before the semicolon at the end 
                the following: ``and broad-based economic growth''; and
            (3) so that subsection (c)(1) reads as follows:
            ``(1) In general.--
                    ``(A) Titles i and iii.--Agreements to provide 
                assistance on a multi-year basis under titles I and III 
                may be made available to recipient countries or to 
                eligible organizations.
                    ``(B) Title ii.--Agreements to provide assistance 
                on a multi-year basis shall be made available to 
                recipient countries and to eligible organizations.''.

SEC. 18. ADMINISTRATIVE PROVISIONS.

    Section 407 of the Agricultural Trade Development and Assistance 
Act of 1954 (7 U.S.C. 1736a) is amended--
            (1) in subsection (a)(1), by inserting ``or private 
        entity'' after ``importing country'';
            (2) in subsection (c)--
                    (A) in paragraph (1)(A), by inserting ``importer 
                or'' before ``importing country''; and
                    (B) in paragraph (2)(A), by inserting ``importer 
                or'' before ``importing country''; and
            (3) by striking subsection (h).

SEC. 19. EXPIRATION DATE.

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

SEC. 20. REPEAL OF SECTIONS 409 AND 410.

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

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

    Section 501(a)(6) of the Agricultural Trade Development and 
Assistance Act of 1954 (7 U.S.C. 1737(a)(6)) is amended--
            (1) by striking ``practicable'','' and all that follows 
        through ``under this section'' and inserting ``that local 
        currencies can be used to meet the costs of a program 
        established under this section, augment funds of the United 
        States that are available for such a program''; and
            (2) by inserting ``, within the country where the program 
        is conducted'' before the period at the end.

SEC. 22. TITLE V FUNDING LEVEL.

    Section 501(c) of the Agricultural Trade Development and Assistance 
Act of 1954 (7 U.S.C. 1737(c)) is amended--
            (1) by striking ``0.2'' and inserting ``0.4''; and
            (2) by striking ``1991 through 1995'' and inserting ``1996 
        through 2002''.

SEC. 23. FOOD FOR PROGRESS.

    Section 1110 of the Food Security Act of 1985 (7 U.S.C. 1736o) is 
amended--
            (1) in the first sentence of subsection (b)(1), by 
        inserting ``intergovernmental organizations,'' after ``private 
        voluntary organizations,'';
            (2) in subsection (g), by striking ``1995'' and inserting 
        ``2002'';
            (3) in subsection (k), by striking ``1995'' and inserting 
        ``2002'';
            (4) in subsection (l)(1)--
                    (A) by striking ``1995'' and inserting ``2002''; 
                and
                    (B) by inserting ``, and to provide administrative 
                and technical assistance for monetization programs,'' 
                after ``monitoring of food assistance programs''; and
            (5) in subsection (m)--
                    (A) by striking ``with respect to the independent 
                states of the former Soviet Union''; and
                    (B) in paragraph (2), by striking ``in the 
                independent states''.

SEC. 24. FOOD SECURITY COMMODITY RESERVE.

    (a) Food Security Commodity Reserve Act of 1995.--The title heading 
of title III of the Agricultural Act of 1980 (7 U.S.C. 1736f-1 note) is 
amended by striking ``food security wheat reserve act of 1980'' and 
inserting ``food security commodity reserve act of 1995''.
    (b) Short Title.--Section 301 of the Act (7 U.S.C. 1736f-1 note) is 
amended by striking ``Food Security Wheat Reserve Act of 1980'' and 
inserting ``Food Security Commodity Reserve Act of 1995''.
    (c) In General.--Section 302 of the Act (7 U.S.C. 1736f-1) is 
amended--
            (1) in the section heading, by striking ``food security 
        wheat reserve'' and inserting ``food security commodity 
        reserve'';
            (2) so that subsection (a) reads as follows:
    ``(a) In General.--To provide for a reserve solely to meet 
emergency humanitarian food needs in developing countries, the 
Secretary shall establish a reserve stock of wheat, rice, corn, or 
sorghum, or any combination of the commodities, totaling not more than 
4,000,000 metric tons for use as described in subsection (c).'';
            (3) so that subsection (b)(1) reads as follows:
    ``(b) Commodities in Reserve.--
            ``(1) In general.--The reserve established under this 
        section shall consist of--
                    ``(A) wheat in the reserve established under the 
                Food Security Commodity Reserve Act of 1980 as of the 
                date of enactment of the Food For Peace Reauthorization 
                Act of 1995;
                    ``(B) wheat, rice, corn, and sorghum (referred to 
                in this section as `eligible commodities') acquired in 
                accordance with paragraph (2) to replenish eligible 
                commodities released from the reserve, including wheat 
                to replenish wheat released from the reserve 
                established under the Food Security Wheat Reserve Act 
                of 1980 but not replenished as of the date of enactment 
                of the Food For Peace Reauthorization Act of 1995; and
                    ``(C) such rice, corn, and sorghum as the Secretary 
                of Agriculture (referred to in this section as the 
                `Secretary') may, at such time and in such manner as 
                the Secretary determines appropriate, acquire as a 
                result of exchanging an equivalent value of wheat in 
                the reserve established under this section.'';
            (4) in subsection (b)(2)--
                    (A) by striking ``(2)(A) Subject to'' and inserting 
                the following:
            ``(2) Replenishment of reserve.--
                    ``(A) In general.--Subject to'';
                    (B) in subparagraph (A)--
                            (i) by striking ``(i) of this section 
                        stocks of wheat'' and inserting ``(i) stocks of 
                        eligible commodities'';
                            (ii) in clause (ii), by striking ``stocks 
                        of wheat'' and inserting ``stocks of eligible 
                        commodities''; and
                            (iii) in the second sentence, by striking 
                        ``wheat'' and inserting ``eligible 
                        commodities''; and
                    (C) in subparagraph (B)--
                            (i) by striking ``(B) Not later'' and 
                        inserting ``(B) Time for replenishment of 
                        reserve.--Not later''; and
                            (ii) in clause (ii), by striking ``wheat'' 
                        and inserting ``eligible commodities'';
            (5) so that subsections (c) through (f) read as follows:
    ``(c) Release of Eligible Commodities.--
            ``(1) Determination.--If the Secretary determines that the 
        amount of commodities allocated for minimum assistance under 
        section 204(a)(1) of the Agricultural Trade Development and 
        Assistance Act of 1954 (7 U.S.C. 1724(a)(1)) less the amount of 
        commodities allocated for minimum non-emergency assistance 
        under section 204(a)(2) of the Act (7 U.S.C. 1724(a)(2)) will 
        be insufficient to meet the need for commodities for emergency 
        assistance under section 202(a) of the Act (7 U.S.C. 1722(a)), 
        the Secretary in any fiscal year may release from the reserve--
                    ``(A) up to 500,000 metric tons of wheat or the 
                equivalent value of eligible commodities other than 
                wheat; and
                    ``(B) any eligible commodities which under 
                subparagraph (A) could have been released but were not 
                released in prior fiscal years.
            ``(2) Availability of commodities.--Commodities released 
        under paragraph (1) shall be made available under title II of 
        the Agricultural Trade Development and Assistance Act of 1954 
        (7 U.S.C. 1721 et seq.) for emergency assistance.
            ``(3) Exchange.--The Secretary may exchange an eligible 
        commodity for another United States commodity of equal value, 
        including powdered milk, pulses, and vegetable oil.
            ``(4) Use of normal commercial practices.--To the maximum 
        extend practicable consistent with the fulfillment of the 
        purposes of this section and the effective and efficient 
        administration of this section, the Secretary shall use the 
        usual and customary channels, facilities, arrangements, and 
practices of the trade and commerce.
            ``(5) Waiver of minimum tonnage requirements.--Nothing in 
        this subsection shall require the exercise of the waiver under 
        section 204(a)(3) of the Agricultural Trade Development and 
        Assistance Act of 1954 (7 U.S.C. 1724(a)(3)) as a prerequisite 
        for the release of eligible commodities under this subsection.
    ``(d) Transportation and Handling Costs.--
            ``(1) In general.--The cost of transportation and handling 
        of eligible commodities released from the reserve established 
        under this section shall be paid by the Commodity Credit 
        Corporation in accordance with section 406 of the Agricultural 
        Trade Development and Assistance Act of 1954 (7 U.S.C. 1736).
            ``(2) Reimbursement.--
                    ``(A) In general.--The Commodity Credit Corporation 
                shall be reimbursed for the costs incurred under 
                paragraph (1) from the funds made available to carry 
                out the Agricultural Trade Development and Assistance 
                Act of 1954 (7 U.S.C. 1691 et seq.).
                    ``(B) Basis for reimbursement.--The reimbursement 
                shall be made on the basis of the lesser of the actual 
                cost incurred by the Commodity Credit Corporation less 
                any savings achieved as a result of decreased storage 
                and handling costs for the reserve.
                    ``(C) Decreased storage and handling costs.--For 
                purposes of this subsection, `decreased storage and 
                handling costs' shall mean the total actual costs for 
                storage and handling incurred by the Commodity Credit 
                Corporation for the reserve established under title III 
                of the Agricultural Act of 1980 in fiscal year 1995 
                less the total actual costs for storage and handling 
                incurred by the Corporation for the reserve established 
                under this Act in the fiscal year for which the savings 
                are calculated.
    ``(e) Management of Reserve.--The Secretary shall provide for--
            ``(1) the management of eligible commodities in the reserve 
        as to location and quality of commodities needed to meet 
        emergency situations; and
            ``(2) the periodic rotation of eligible commodities in the 
        reserve to avoid spoilage and deterioration of such stocks.
    ``(f) Treatment of Reserve Under Other Law.--Eligible commodities 
in the reserve established under this section shall not be--
            ``(1) considered a part of the total domestic supply 
        (including carryover) for the purpose of administering the 
        Agricultural Trade Development and Assistance Act of 1954 (7 
        U.S.C. 1691 et seq.); and
            ``(2) subject to any quantitative limitation on exports 
        that may be imposed under section 7 of the Export 
        Administration Act of 1979 (50 U.S.C. App. 2406).'';
            (6) in subsection (g)--
                    (A) by striking ``(g)(1) The'' and inserting the 
                following:
    ``(g) Use of Commodity Credit Corporation.--The'';
                    (B) by striking ``wheat'' and inserting ``an 
                eligible commodity''; and
                    (C) by striking paragraph (2);
            (7) in subsection (h)--
                    (A) by striking ``(h) Any'' and inserting:
    ``(h) Finality of Determination.--Any''; and
                    (B) by striking ``President or the Secretary of 
                Agriculture'' and inserting ``Secretary''; and
            (8) in subsection (i)--
                    (A) by striking ``(i) The'' and inserting:
    ``(i) Termination of Authority.--The'';
                    (B) by striking ``wheat'' each place it appears and 
                inserting ``eligible commodities''; and
                    (C) by striking ``1995'' each place it appears and 
                inserting ``2002''.
    (d) Effective Date.--Section 303 of the Act (7 U.S.C. 1736-1 note) 
is amended by striking ``October 1, 1980'' and all that follows through 
the end of the section and inserting ``on the date of enactment of this 
Act.''.
    (e) Conforming Amendment.--Section 208(d)(2) of the Agriculture 
Trade Suspension Adjustment Act of 1980 (7 U.S.C. 4001(d)(2)) is 
amended to read as follows:
            ``(2) Applicability of certain provisions.--Subsections 
        (b)(2), (c), (e), and (f) of section 302 of the Food Security 
        Commodity Reserve Act of 1995 shall apply to commodities in any 
        reserve established under paragraph (1), except that the 
        references to `eligible commodities' in the subsections shall 
        be deemed to be references to `agricultural commodities'.''.
                                 <all>
HR 2493 IH----2