[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4560 Introduced in House (IH)]







105th CONGRESS
  2d Session
                                H. R. 4560

 To provide short-term and long-term relief to agricultural producers, 
   small businesses, and rural communities adversely affected by low 
                  prices for agricultural commodities.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           September 14, 1998

   Mr. Hill introduced the following bill; which was referred to the 
Committee on Agriculture, and in addition to the Committee on Ways and 
 Means, 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 provide short-term and long-term relief to agricultural producers, 
   small businesses, and rural communities adversely affected by low 
                  prices for agricultural commodities.

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

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Family Agriculture 
Reinvestment and Marketing Strategy Act of 1998''.
    (b) Table of Contents.--The table of contents of this Act is as 
follows:

Sec. 1. Short title; table of contents.
                TITLE I--SHORT-TERM CASH RELIEF MEASURES

Sec. 101. Increase in amounts available for payments under production 
                            flexibility contracts.
Sec. 102. Revenue insurance based on dollar per acre revenue guarantee.
Sec. 103. Supplemental market deficiency and indemnity payments.
    TITLE II--TRADE ISSUES AND PROMOTION OF VALUE-ADDED AGRICULTURE

                        Subtitle A--Trade Issues

Sec. 201. Trade with Canada.
Sec. 202. Principal agricultural trade negotiating objectives.
Sec. 203. Accession of countries with state trading enterprises to 
                            General Agreement on Tariffs and Trade and 
                            World Trade Organization.
Sec. 204. Accession of China to the WTO.
Sec. 205. The accession of Russia to the WTO.
Sec. 206. Definitions.
                  Subtitle B--Value-Added Agriculture

Sec. 211. Production and marketing of value-added agricultural 
                            commodities.
Sec. 212. Establishment of small business disaster assistance program.
                       Subtitle C--Meat Labeling

Sec. 221. Definitions.
Sec. 222. Labeling of imported meat and meat food products.
Sec. 223. Regulations.
               Subtitle D--Other Matters Regarding Trade

Sec. 231. Study of licensing and registration procedures under Federal 
                            insecticide, fungicide, and rodenticide 
                            act.
Sec. 232. Livestock industry improvement.
                       TITLE III--TAX PROVISIONS

Sec. 301. Reduction in individual capital gains tax rates.
Sec. 302. Repeal of estate and gift taxes.
Sec. 303. Permanent extension of income averaging for farmers.

                TITLE I--SHORT-TERM CASH RELIEF MEASURES

SEC. 101. INCREASE IN AMOUNTS AVAILABLE FOR PAYMENTS UNDER PRODUCTION 
              FLEXIBILITY CONTRACTS.

    Section 113 of the Agricultural Market Transition Act (7 U.S.C. 
7213(a)) is amended by adding at the end the following new subsection:
    ``(g) Transfer of Unused Funds From Agricultural Trade Programs.--
For each of the fiscal years 1999 through 2002, the Secretary may 
increase the amount available under subsection (a) for contract 
payments by up to $1,000,000,000 through the transfer of funds 
available for that fiscal year for agricultural trade export programs 
administered by the Secretary, such as the export enhancement program 
and market access program.''.

SEC. 102. REVENUE INSURANCE BASED ON DOLLAR PER ACRE REVENUE GUARANTEE.

    (a) Revenue Insurance Program Required.--The Secretary of 
Agriculture, acting through the Risk Management Agency, shall conduct a 
crop insurance program that allows a producer to select a dollar amount 
of coverage per acre by crop within a production area designated by the 
Secretary. The Secretary shall use regional offices of the Risk 
Management Agency to develop a crop yield potential in a designated 
homogeneous production area using Geographical Information System data. 
The Secretary shall develop and publish a maximum crop value for the 
production area by multiplying the area's yield times a market price 
researched and projected by the Secretary.
    (b) Producer Selection.--A producer may select a dollar per acre 
revenue guarantee equal to 85 percent (or less) of the established 
maximum crop value in the production area in which the producer's farm 
operation is located.
    (c) Determination of Crop Values.--Producers shall have the option 
of using the crop value established for a production area or providing 
production records to establish a farm enterprise crop value for their 
operation. The Secretary shall continue to use existing Risk Management 
Agency unit structure standards in conducting the revenue insurance 
program. Harvest value of crop production shall be determined using 
Risk Management Agency established crop value per unit of measure.
    (d) Calculation of Losses.--The Secretary shall calculate a 
producer's losses by subtracting the dollar value of crop production 
from the revenue guarantee on a per unit basis. To reduce premium 
costs, the Secretary shall allow a producer the option of combining the 
guaranteed dollar value of all insurable acreage of the crop in the 
county in which the producer has a share. The Secretary shall also 
permit producers to combine crops to be pooled into one revenue 
guarantee. The harvest value of each crop in the combination would then 
be determined and totaled before an indemnity would be paid.
    (e) Repeal of Existing Pilot Program.--Section 508(h) of the 
Federal Crop Insurance Act (7 U.S.C. 1508(h)) is amended by striking 
paragraph (9).

SEC. 103. SUPPLEMENTAL MARKET DEFICIENCY AND INDEMNITY PAYMENTS.

    Section 135 of the Agricultural Market Transition Act (7 U.S.C. 
7235) is amended by adding at the end the following new subsection:
    ``(e) Supplement to Loan Deficiency Payment.--To indemnify 
producers for the adverse effect of trade sanctions imposed by the 
United States on the export of wheat and barley loan commodities, each 
eligible wheat and barley producer shall receive an additional $0.60 
market deficiency payment per bushel to the loan payment rate 
determined under subsection (c).''.

    TITLE II--TRADE ISSUES AND PROMOTION OF VALUE-ADDED AGRICULTURE

                        Subtitle A--Trade Issues

SEC. 201. TRADE WITH CANADA.

    (a) Compliance of Canadian Wheat Board With Requests by General 
Accounting Office.--Until such time as the Canadian Wheat Board 
complies with requests made by officials of the General Accounting 
Office for access to the records of the Board for the purposes of 
monitoring compliance with the North American Free Trade Agreement, the 
President shall proclaim restrictions on imports of wheat produced in 
Canada.
    (b) Subsidies.--The President shall determine whether the Canadian 
Wheat Board, in implementing its pricing policies, complies fully with 
trade agreements between Canada and the United States which prohibit 
subsidies. If the President determines that the Canadian Wheat Board is 
selling grain in the United States market at prices below the costs of 
acquiring and delivering the grain to such market, then the President 
shall impose appropriate sanctions provided by law.
    (c) Access to Canadian Rail System.--The President shall take the 
necessary steps to access by United States producers of agricultural 
commodities to Canada's rail system in order to provide for the 
efficient transportation of such commodities to their destinations.
    (d) Publication of Data on Feeder Cattle.--The United States Trade 
Representative, in consultation with the Secretary of Agriculture, 
shall publish on a monthly basis data that sets forth the prices of 
feeder cattle imported from Canada into the United States, as well as 
the number of cattle in Canada in inventory and the number of cattle 
slaughtered in that country.
    (e) Subsidized Feed Costs.--The President shall determine how low 
costs of Canadian feed for cattle, including direct and indirect 
subsidies, affect the production and exports of Canadian cattle. If the 
President determines that any such subsidies exist, then the President 
shall take action to seek the termination of such subsidies.
    (f) Phytosanitary Measures.--The United States Trade Representative 
shall take the necessary steps to secure changes in Canada's 
phytosanitary inspection requirements with respect to agricultural 
commodities to make such requirements reciprocal with those of the 
United States.
    (g) Trade Barriers.--The President shall determine whether Canada 
is imposing tariff or nontariff barriers to import of United States 
agricultural commodities in violation of any trade agreement to which 
Canada is a party, then the President shall invoke the remedies 
available to the United States to restrict imports of agricultural 
products from Canada.
    (h) Reports to Congress.--The President shall report to the 
Congress, by not later than January 1 of each year, on the 
implementation of this section.

SEC. 202. PRINCIPAL AGRICULTURAL TRADE NEGOTIATING OBJECTIVES.

    The principle agricultural trade negotiating objectives of the 
United States with respect to the WTO Agreement on Agriculture shall 
include the following:
            (1) Elimination of tariffs on agricultural products.--The 
        United States shall negotiate a specific date after which 
        tariffs imposed on agricultural products shall be eliminated by 
        WTO members and the United States shall negotiate the immediate 
        elimination or substantial reduction of the tariffs imposed on 
        the following products by certain WTO members:
                    (A) Tariffs imposed on meat products by Japan.
                    (B) Tariffs imposed on meat products by South 
                Korea.
                    (C) Tariffs imposed on grains, livestock, and meat 
                products by the Philippines.
                    (D) Tariffs imposed on wheat by South Africa.
                    (E) Tariffs imposed on milling wheat, corn, and 
                sorghum by Turkey.
            (2) Elimination of export and other trade-distorting 
        subsidies.--The United States shall negotiate a specific date 
        after which all export and other trade-distorting subsidies 
        shall be eliminated by WTO members and the United States shall 
        negotiate the elimination of the following subsidies provided 
        by the certain WTO members:
                    (A) Export subsidies on wheat, wheat flour, beef, 
                and poultry provided by the European Union.
                    (B) Domestic subsidies on pork and feed grains 
                provided by the European Union.
            (3) Elimination of the unfair or trade-distorting 
        activities of state trading enterprises.--
                    (A) In general.--The United States shall negotiate 
                the elimination of the exclusive right of state trading 
                enterprises to import agricultural products in the case 
                of members of the WTO and shall negotiate the 
                elimination of the ability of state trading enterprises 
                to use their exclusive authority over the export of 
                agricultural products to distort trade and 
                international prices.
                    (B) Specific reforms.--The United States shall 
                negotiate the following specific reforms with respect 
                to the activities of state trading enterprises:
                            (i) Ensure that Australia adheres to its 
                        commitment to end the export monopoly of the 
                        Australia Wheat Board no later than January 1, 
                        1999.
                            (ii) Ensure that Canada eliminates the 
                        discretionary pricing practices of the Canadian 
                        Wheat Board.
            (4) Elimination of unjustified sanitary and phytosanitary 
        restrictions on imports of united states agricultural 
        products.--The United States shall negotiate the elimination of 
        the following sanitary and phytosanitary restrictions on 
        imports of United States agricultural products to the extent 
        that the restrictions are inconsistent with the WTO Agreement 
        on the Application of Sanitary and Phytosanitary Measures:
                    (A) Australia's quarantine and health restrictions 
                on imports of livestock and poultry.
                    (B) Australia's prohibition on poultry imports in 
                the absence of WTO-required risk assessments.
                    (C) Australia's ban on cooked pork.
                    (D) Australia's requirement that most feed grains 
                be steam-treated or processed in an alternative 
                satisfactory manner at the port of entry.
                    (E) Chile's refusal to permit United States beef in 
                consumer cuts to enter the market without being graded 
                to Chilean standards.
                    (F) Egypt's refusal to adhere to the standard 
                international practice of allowing producers to 
                determine the shelf life of their product.
                    (G) The European Union's failure to require 
                labeling only for health or safety reasons.
                    (H) The failure of the European Union's Specified 
                Risk Material regulations to recognize regional disease 
                differences in animal disease status and to account for 
                available scientific information and advice relating to 
                the control of bovine spongiform encephalopathy and 
                other transmissible spongiform encephalopathies in 
                products of animal origin.
                    (I) The failure of the European Union to implement 
                the requirements of the WTO with respect to the 
                European Union's ban on growth promoting hormones in 
                meat production.
                    (J) The European Union's lengthy and unpredictable 
                approval process for agricultural products that contain 
                genetically modified organisms.
                    (K) Greece's ban on the import of United States 
                wheat.
                    (L) India's sanitary and phytosanitary restrictions 
                on imports of United States wheat.
                    (M) Israel's ban on imports of non-kosher meat and 
                meat products.
                    (N) South Korea's excessive labeling requirements.
                    (O) South Korea's failure to base its standards and 
                testing procedures on scientific risk assessment.
                    (P) Poland's zero tolerance policy on weed seeds.
                    (Q) Turkey's ban on cattle and beef imports.

SEC. 203. ACCESSION OF COUNTRIES WITH STATE TRADING ENTERPRISES TO 
              GENERAL AGREEMENT ON TARIFFS AND TRADE AND WORLD TRADE 
              ORGANIZATION.

    Section 1106 of the Omnibus Trade and Competitiveness Act of 1988 
(19 U.S.C. 2905) is amended--
            (1) by striking ``major foreign country'' each place it 
        appears and inserting ``foreign country'';
            (2) in subsection (a), by amending paragraph (1) to read as 
        follows:
            ``(1) whether state trading enterprises produce or procure 
        a significant share of--
                    ``(A) the goods exported from such foreign country;
                    ``(B) the goods imported into such foreign country; 
                or
                    ``(C) the goods produced domestically in such 
                foreign country; and''; and
            (3) in subsection (b)(2)(A)--
                    (A) by amending clause (i) to read as follows:
                            ``(i) will make purchases and sales in 
                        international trade based solely on commercial 
                        considerations (including price, quality, 
                        availability, marketability, and 
                        transportation), and''; and
                    (B) in clause (ii), by striking ``, in accordance 
                with customary practice,''.

SEC. 204. ACCESSION OF CHINA TO THE WTO.

    The United States shall not agree to the accession of the People's 
Republic of China to the WTO until the President certifies to Congress 
the following:
            (1) The People's Republic of China evenly applies 
        phytosanitary and veterinary import quarantine standards that 
        are based upon modern laboratory techniques.
            (2) The People's Republic of China agrees to eliminate the 
        restrictive import licensing requirements it imposes on pork 
        products.
            (3) The People's Republic of China agrees to permit the 
        unrestricted importation of meat and wheat products.

SEC. 205. THE ACCESSION OF RUSSIA TO THE WTO.

    The United States shall not agree to the accession of Russia to the 
WTO until the President certifies to Congress the following:
            (1) Russia agrees to change the Russian Veterinary 
        Department requirements in a manner that brings the 
        requirements into conformity with the WTO's Agreement on the 
        Application of Sanitary and Phytosanitary Measures. In 
        particular the requirements must be more transparent and based 
        on sound science.
            (2) Russia agrees to change other sanitary and 
        phytosanitary requirements that violate the WTO Agreement on 
        the Application of Sanitary and Phytosanitary Measures, 
        especially the requirements governing the import of planting 
        seeds and meat products.

SEC. 206. DEFINITIONS.

    In this subtitle:
            (1) Agreement on agriculture.--The term ``Agreement on 
        Agriculture'' means the Agreement described in section 
        101(d)(2) of the Uruguay Round Agreements Act.
            (2) Agreement on the application of sanitary; and 
        phytosanitary measures.--The term ``Agreement on the 
        Application of Sanitary and Phytosanitary Measures'' means the 
        Agreement described in section 101(d)(3) of the Uruguay Round 
        Agreements Act.
            (3) Uruguay round agreements.--The term ``Uruguay Round 
        Agreements'' has the meaning given such term in section 2(7) of 
        the Uruguay Round Agreements Act (19 U.S.C. 3501(7).
            (4) World trade organization.--The term ``World Trade 
        Organization'' means the organization established pursuant to 
        the WTO Agreement.
            (5) WTO agreement.--The term ``WTO Agreement'' means the 
        Agreement Establishing The World Trade Organization entered 
        into on April 15, 1994.
            (6) WTO and wto member.--The terms ``WTO'' and ``WTO 
        member'' have the meanings given those terms in section 2 of 
        the Uruguay Round Agreements Act (19 U.S.C. 3501).

                  Subtitle B--Value-Added Agriculture

SEC. 211. PRODUCTION AND MARKETING OF VALUE-ADDED AGRICULTURAL 
              COMMODITIES.

    (a) New Grant Program.--Section 310B of the Consolidated Farm and 
Rural Development Act (7 U.S.C. 1932) is amended by adding at the end 
the following new subsection:
    ``(h) Development of Value-Added Production and Marketing.--In 
addition to other amounts available for loans and grants authorized 
under this section and section 306(a)(11), there is authorized to be 
appropriated to the Secretary $400,000,000 for each fiscal year to make 
grants and loans under this section and section 306(a)(11) for projects 
that encourage the production and marketing of value-added agricultural 
commodities.''.
    (b) Report on Other Assistance.--Not later than one year after the 
date of the enactment of this Act, the Secretary of Agriculture shall 
submit to Congress a report specifying the Federal programs available 
to agricultural producers, cooperative organizations of producers, and 
rural communities under which loans or grants may be made to support 
the development of production and marketing facilities for value-added 
agricultural commodities.

SEC. 212. ESTABLISHMENT OF SMALL BUSINESS DISASTER ASSISTANCE PROGRAM.

    The Small Business Administrator shall implement a program that 
allows any small business concern, rancher, or farmer directly affected 
by low commodity prices to have access to low interest loans similar to 
those allowed under areas classified as federal disaster areas.

                       Subtitle C--Meat Labeling

SEC. 221. DEFINITIONS.

    Section 1 of the Federal Meat Inspection Act (21 U.S.C. 601) is 
amended by adding at the end the following:
    ``(w) Beef.--The term `beef' means meat produced from cattle 
(including veal).
    ``(x) Lamb.--The term `lamb' means meat, other than mutton, 
produced from sheep.
    ``(y) Beef Blended with Imported Meat.--The term `beef blended with 
imported meat' means ground beef, or beef in another meat food product 
that contains United States beef and any imported meat.
    ``(z) Lamb Blended with Imported Meat.--The term `lamb blended with 
imported meat' means ground meat, or lamb in another meat food product, 
that contains United States lamb and any imported meat.
    ``(aa) Imported Beef.--The term `imported beef' means any beef, 
including any fresh muscle cuts, ground meat, trimmings, and beef in 
another meat food product, that is not United States beef, whether or 
not the beef is graded with a quality grade issued by the Secretary.
    ``(bb) Imported Lamb.--The term `imported lamb' means any lamb, 
including any fresh muscle cuts, ground meat, trimmings, and lamb in 
another meat food product, that is not United States lamb, whether or 
not the lamb is graded with a quality grade issued by the Secretary.
    ``(cc) United States Beef.--
            ``(1) In general.--The term `United States beef' means beef 
        produced from cattle slaughtered in the United States.
            ``(2) Exclusions.--The term `United States beef' does not 
        include--
                    ``(A) beef produced from cattle imported into the 
                United States in sealed trucks for slaughter;
                    ``(B) beef produced from imported carcasses;
                    ``(C) imported beef trimmings; or
                    ``(D) imported boxed beef.
    ``(dd) United States Lamb.--
            ``(1) In general.--The term `United States lamb' means 
        lamb, except mutton, produced from sheep slaughtered in the 
        United States.
            ``(2) Exclusions.--The term `United States lamb' does not 
        include--
                    ``(A) lamb produced from sheep imported into the 
                United States in sealed trucks for slaughter;
                    ``(B) lamb produced from an imported carcass;
                    ``(C) imported lamb trimmings; or
                    ``(D) imported boxed lamb.''.

SEC. 222. LABELING OF IMPORTED MEAT AND MEAT FOOD PRODUCTS.

    (a) Labeling Requirement.--
            (1) In general.--Section 1(n) of the Federal Meat 
        Inspection Act (21 U.S.C. 601(n)) is amended by adding at the 
        end the following:
            ``(13)(A) If it is imported beef or imported lamb offered 
        for retail sale as fresh muscle cuts of beef or lamb and is not 
        accompanied by labeling that identifies it as imported beef or 
        imported lamb.
            ``(B) If it is United States beef or United States lamb 
        offered for retail sale, or offered and intended for export as 
        fresh muscle cuts of beef or lamb, and is not accompanied by 
        labeling that identifies it as United States beef or United 
        States lamb.
            ``(C) If it is United States or imported ground beef or 
        other processed beef or lamb product and is not accompanied by 
        labeling that identifies it as United States beef or United 
        States lamb, imported beef or imported lamb, beef blended with 
        imported meat or lamb blended with imported meat, or other 
        designation that identifies the percentage content of United 
        States beef and imported beef United States lamb and imported 
        lamb or contained in the product, as determined by the 
        Secretary under section 7(g).''.
            (2) Conforming amendment.--Section 20(a) of the Federal 
        Meat Inspection Act (21 U.S.C. 620(a)) is amended by adding at 
        the end the following: ``All imported beef or imported lamb 
        offered for retail sale as fresh muscle cuts of beef or lamb 
        shall be plainly and conspicuously marked, labeled, or 
        otherwise identified as imported beef or imported lamb.''.
    (b) Ground or Processed Beef and Lamb.--Section 7 of the Federal 
Meat Inspection Act (21 U.S.C. 607) is amended by adding at the end the 
following:
    ``(g) Ground or Processed Beef and Lamb.--
            ``(1) Voluntary labeling.--Subject to paragraph (2), the 
        Secretary shall provide by regulation for the voluntary 
        labeling or identification of ground beef or lamb, other 
        processed beef or lamb products as United States beef or United 
        States lamb, imported beef or imported lamb, beef blended with 
        imported meat or lamb blended with imported meat, or other 
        designation that identifies the percentage content of United 
        States and imported beef or imported lamb contained in the 
        product, as determined by the Secretary.
            ``(2) Mandatory labeling.--
                    ``(A) In general.--Except as provided in 
                subparagraph (B), not later than 18 months after the 
                date of enactment of this subsection, the Secretary 
                shall provide by regulation for the mandatory labeling 
                or identification of ground beef or lamb, other 
                processed beef or lamb products as United States beef 
                or United States lamb, imported beef or imported lamb, 
                beef blended with imported meat or lamb blended with 
                imported meat, or other designation that identifies the 
                percentage content of United States and imported beef 
                or imported lamb contained in the product, as 
                determined by the Secretary.
                    ``(B) Application.--Subparagraph (A) shall not 
                apply to the extent the Secretary determines that the 
                costs associated with labeling under subparagraph (A) 
                would result in an unreasonable burden on producers, 
                processors, retailers, or consumers.''.
    (c) Ground Beef and Ground Lamb Labeling Study.--
            (1) In general.--The Secretary of Agriculture shall conduct 
        a study of the effects of the mandatory use of imported, 
        blended, or percentage content labeling on ground beef, ground 
        lamb, and other processed beef or lamb products made from 
        imported beef or imported lamb.
            (2) Costs and responses.--The study shall be designed to 
        evaluate the costs associated with and consumer response toward 
        the mandatory use of labeling described in paragraph (1).
            (3) Report.--Not later than 1 year after the date of 
        enactment of this Act, the Secretary shall report the findings 
        of the study conducted under paragraph (1) to the Committee on 
        Agriculture of the House of Representatives and the Committee 
        on Agriculture, Nutrition, and Forestry of the Senate.

SEC. 223 REGULATIONS.

    Not later than 120 days after the date of enactment of this Act, 
the Secretary of Agriculture shall promulgate final regulations to 
carry out the amendments made by this subtitle.

               Subtitle D--Other Matters Regarding Trade

SEC. 231. STUDY OF LICENSING AND REGISTRATION PROCEDURES UNDER FEDERAL 
              INSECTICIDE, FUNGICIDE, AND RODENTICIDE ACT.

    (a) Study Required.--The Secretary of Agriculture and the 
Administrator of the Environmental Protection Agency shall jointly 
conduct a study comparing the procedures by which herbicides and 
pesticides are licensed and registered under the Federal Insecticide, 
Fungicide, and Rodenticide Act (7 U.S.C. 121 et seq.) for use by 
agricultural producers in the United States and the licensing and 
registration procedures used in Canada for herbicides and pesticides. 
As part of the study, the Secretary and the Administrator shall 
consider whether the United States procedures may be safely changed to 
more closely parallel the Canadian procedures.
    (b) Submission of Study.--Not later than one year after the date of 
the enactment of this Act, the Secretary and the Administrator shall 
submit to Congress a report containing the results of the study.

SEC. 232. LIVESTOCK INDUSTRY IMPROVEMENT.

    (a) Domestic Market Reporting.--
            (1) In general.--Section 203(g) of the Agricultural 
        Marketing Act of 1946 (7 U.S.C. 1622(g)) is amended--
                    (A) by striking ``(g) To'' and inserting the 
                following:
    ``(g) Collection and Dissemination of Marketing Information.--
            ``(1) In general.--The Secretary shall''; and
                    (B) by adding at the end the following:
            ``(2) Domestic market reporting.--
                    ``(A) Mandatory reporting pilot program.--
                            ``(i) In general.--The Secretary shall 
                        conduct a 3-year pilot program under which the 
                        Secretary shall require any person or class of 
                        persons engaged in the business of buying, 
                        selling, or marketing livestock, livestock 
                        products, meat, or meat products in an 
                        unmanufactured form to report to the Secretary 
                        in such manner as the Secretary shall require, 
                        such information relating to prices and the 
                        terms of sale for the procurement of livestock, 
                        livestock products, meat, or meat products in 
                        an unmanufactured form as the 
Secretary determines is necessary to carry out this subsection.
                            ``(ii) Noncompliance.--It shall be unlawful 
                        for a person engaged in the business of buying, 
                        selling, or marketing livestock, livestock 
                        products, meat, or meat products in an 
                        unmanufactured form to knowingly fail or refuse 
                        to provide to the Secretary information 
                        required to be reported under subparagraph (A).
                            ``(iii) Cease and Desist and Civil 
                        Penalty.--
                                    ``(I) In general.--If the Secretary 
                                has reason to believe that a person 
                                engaged in the business of buying, 
                                selling, or marketing livestock, 
                                livestock products, meat, or meat 
                                products in an unmanufactured form is 
                                violating the provisions of 
                                subparagraph (A) (or regulation 
                                promulgated under subparagraph (A)), 
                                the Secretary after notice and 
                                opportunity for hearing, may make an 
                                order to cease and desist from 
                                continuing the violation and assess a 
                                civil penalty of not more than $10,000 
                                for each violation.
                                    ``(II) Considerations.--In 
                                determining the amount of a civil 
                                penalty to be assessed under clause 
                                (i), the Secretary shall consider the 
                                gravity of the offense, the size of the 
                                business involved, and the effect of 
                                the penalty on the ability of the 
                                person to continue in business.
                            ``(iv) Referral to attorney general.--If, 
                        after expiration of the period for appeal or 
                        after the affirmance of a civil penalty 
                        assessed under clause (iii), the person against 
                        whom the civil penalty is assessed fails to pay 
                        the civil penalty, the Secretary may refer the 
                        matter to the Attorney General, who may recover 
                        the amount of the civil penalty in a civil 
                        action in United States district court.
                    ``(B) Voluntary reporting.--The Secretary shall 
                encourage voluntary reporting by persons engaged in the 
                business of buying, selling, or marketing livestock, 
                livestock products, meats, or meat products in an 
                unmanufactured form that are not subjected to a 
                mandatory reporting requirement under subparagraph (A).
                    ``(C) Availability of information.--The Secretary 
                shall make information received under this paragraph 
                available to the public only in a form that ensures 
                that--
                            ``(i) the identity of the person submitting 
                        a report is not disclosed; and
                            ``(ii) the confidentiality of proprietary 
                        business information is otherwise protected.
                    ``(D) Effect on other laws.--Nothing in this 
                paragraph restricts or modifies the authority of the 
                Secretary to collect voluntary reports in accordance 
                with other provisions of law.''.
            (2) Technical amendment.--Section 203 of the Agricultural 
        Marketing Act of 1946 (7 U.S.C. 1622) is amended--
                    (A) by striking ``The Secretary is directed and 
                authorized:''; and
                    (B) in the first sentence of each of subsections 
                (a) through (f) and subsections (h) through (n), by 
                striking ``To'' and inserting ``The Secretary shall''.
    (b) Prohibition on Noncompetitive Practices.--Section 202 of the 
Packers and Stockyards Act, 1921 (7 U.S.C. 192), is amended--
            (1) in subsection (g), by striking the period at the end 
        and inserting ``; or''; and
            (2) by adding at the end the following:
    ``(h) Engage in any practice or device that the Secretary by 
regulation, after consultation with producers of cattle, lamb, and 
hogs, and other persons in the cattle, lamb, and hog industries, 
determines is a detrimental noncompetitive practice or device relating 
to the price or a term of sale for the procurement of livestock or the 
sale of meat or other byproduct of slaughter.''.
    (c) Protection of Livestock Producers Against Retaliation by 
Packers.--
            (1) Retaliation prohibited.--Section 202(b) of the Packers 
        and Stockyards Act, 1921 (7 U.S.C. 192(b)), is amended--
                    (A) by striking ``or subject'' and inserting 
                ``subject''; and
                    (B) by inserting before the semicolon at the end 
                the following: ``, or retaliate against any livestock 
                producer on account of any statement made by the 
                producer (whether made to the Secretary or a law 
                enforcement agency or in a public forum) regarding an 
action of any packer''.
            (2) Special requirements regarding allegations of 
        retaliation.--Section 203 of the Packers and Stockyards Act, 
        1921 (7 U.S.C. 193), is amended by adding at the end the 
        following:
    ``(e) Special Procedures Regarding Allegations of Retaliation.--
            ``(1) Consideration by special panel.--The President shall 
        appoint a special panel consisting of 3 members to receive and 
        initially consider a complaint submitted by any person that 
        alleges prohibited packer retaliation under section 202(b) 
        directed against a livestock producer.
            ``(2) Complaint; hearing.--If the panel has reason to 
        believe from the complaint or resulting investigation that a 
        packer has violated or is violating the retaliation prohibition 
        under section 202(b), the panel shall notify the Secretary who 
        shall cause a complaint to be issued against the packer, and a 
        hearing conducted, under subsection (a).
            ``(3) Evidentiary standard.--In the case of a complaint 
        regarding retaliation prohibited under section 202(b), the 
        Secretary shall find that the packer involved has violated or 
        is violating section 202(b) if the finding is supported by a 
        preponderance of the evidence.''.
            (3) Damages for producers suffering retaliation.--Section 
        203 of the Packers and Stockyards Act, 1921 (7 U.S.C. 193) (as 
        amended by subsection (b)), is amended by adding at the end the 
        following:
    ``(f) Damages for Producers Suffering Retaliation.--
            ``(1) In general.--If a packer violates the retaliation 
        prohibition under section 202(b), the packer shall be liable to 
        the livestock producer injured by the retaliation for not more 
        than 3 times the amount of damages sustained as a result of the 
        violation.
            ``(2) Enforcement.--The liability may be enforced either by 
        complaint to the Secretary, as provided in subsection (e), or 
        by suit in any court of competent jurisdiction.
            ``(3) Other remedies.--This subsection shall not abridge or 
        alter a remedy existing at common law or by statute. The remedy 
        provided by this subsection shall be in addition to any other 
        remedy.''.
    (d) Review of Federal Agriculture Credit Policies.--The Secretary 
of Agriculture, in consultation with the Secretary of the Treasury, the 
Chairman of the Board of Governors of the Federal Reserve System, and 
the Chairman of the Board of the Farm Credit Administration, shall 
establish an interagency working group to study--
            (1) the extent to which Federal lending practices and 
        policies have contributed, or are contributing, to market 
        concentration in the livestock and dairy sectors of the 
        national economy; and
            (2) whether Federal policies regarding the financial system 
        of the United States adequately take account of the weather and 
        price volatility risks inherent in livestock and dairy 
        enterprises.

                       TITLE III--TAX PROVISIONS

SEC. 301. REDUCTION IN INDIVIDUAL CAPITAL GAINS TAX RATES.

    (a) In General.--Subsection (h) of section 1 of the Internal 
Revenue Code of 1986 is amended to read as follows:
    ``(h) Maximum Capital Gains Rate.--
            ``(1) In general.--If a taxpayer has a net capital gain for 
        any taxable year, the tax imposed by this section for such 
        taxable year shall not exceed the sum of--
                    ``(A) a tax computed at the rates and in the same 
                manner as if this subsection had not been enacted on 
                taxable income reduced by the net capital gain,
                    ``(B) 7.5 percent of so much of the net capital 
                gain (or, if less, taxable income) as does not exceed 
                the excess (if any) of--
                            ``(i) the amount of taxable income which 
                        would (without regard to this paragraph) be 
                        taxed at a rate below 28 percent, over
                            ``(ii) the taxable income reduced by the 
                        net capital gain, and
                    ``(C) 15 percent of the amount of taxable income in 
                excess of the sum of the amounts on which tax is 
                determined under subparagraphs (A) and (B).
            ``(2) Net capital gain taken into account as investment 
        income.--For purposes of this subsection, the net capital gain 
        for any taxable year shall be reduced (but not below zero) by 
        the amount which the taxpayer takes into account as investment 
        income under section 163(d)(4)(B)(iii).''.
    (b) Alternative Minimum Tax.--Paragraph (3) of section 55(b) of 
such Code is amended to read as follows:
            ``(3) Maximum rate of tax on net capital gain of 
        noncorporate taxpayers.--The amount determined under the first 
        sentence of paragraph (1)(A)(i) shall not exceed the sum of--
                    ``(A) the amount determined under such first 
                sentence computed at the rates and in the same manner 
                as if this paragraph had not been enacted on the 
                taxable excess reduced by the net capital gain,
                    ``(B) 7.5 percent of so much of the net capital 
                gain (or, if less, taxable excess) as does not exceed 
                the amount on which a tax is determined under section 
                1(h)(1)(B), and
                    ``(C) 15 percent of the amount of taxable excess in 
                excess of the sum of the amounts on which tax is 
                determined under subparagraphs (A) and (B).''.
    (c) Conforming Amendments.--
            (1) Paragraph (1) of section 1445(e) of such Code is 
        amended by striking ``20 percent'' and inserting ``15 
        percent''.
            (2) The second sentence of section 7518(g)(6)(A) of such 
        Code, and the second sentence of section 607(h)(6)(A) of the 
        Merchant Marine Act, 1936, are each amended by striking ``20 
        percent'' and inserting ``15 percent''.
            (3) Section 311 of the Taxpayer Relief Act of 1997 is 
        amended by striking subsection (e).
            (4) Paragraph (7) of section 57(a) of such Code (as amended 
        by the Internal Revenue Service Restructuring and Reform Act of 
        1998) is amended by striking the last sentence.
            (5) Paragraphs (11) and (12) of section 1223, and section 
        1235(a), of such Code (as amended by the Internal Revenue 
        Service Restructuring and Reform Act of 1998) are each amended 
        by striking ``18 months'' each place it appears and inserting 
        ``1 year''.
    (d) Transitional Rules for Taxable Years Which Include June 24, 
1998.--
            (1) In general.--Subsection (h) of section 1 of such Code 
        (as amended by the Internal Revenue Service Restructuring and 
        Reform Act of 1998) is amended by adding at the end the 
        following new paragraph:
            ``(14) Special rules for taxable years which include june 
        24, 1998.--For purposes of applying this subsection in the case 
        of a taxable year which includes June 24, 1998--
                    ``(A) Gains or losses properly taken into account 
                for the period on or after such date shall be 
                disregarded in applying paragraph (5)(A)(i), subclauses 
                (I) and (II) of paragraph (5)(A)(ii), paragraph (5)(B), 
                paragraph (6), and paragraph (7)(A).
                    ``(B) The amount determined under subparagraph (B) 
                of paragraph (1) shall be the sum of--
                            ``(i) 7.5 percent of the amount which would 
                        be determined under such subparagraph if the 
                        amount of gain taken into account under such 
                        subparagraph did not exceed the net capital 
                        gain taking into account only gain or loss 
                        properly taken into account for the portion of 
                        the taxable year on or after such date, plus
                            ``(ii) 10 percent of the excess of the 
                        amount determined under such subparagraph 
                        (determined without regard to this paragraph) 
                        over the amount determined under clause (i).
                    ``(C) The amount determined under subparagraph (C) 
                of paragraph (1) shall be the sum of--
                            ``(i) 15 percent of the amount which would 
                        be determined under such subparagraph if the 
                        adjusted net capital gain did not exceed the 
                        net capital gain taking into account only gain 
                        or loss properly taken into account for the 
                        portion of the taxable year on or after such 
                        date, plus
                            ``(ii) 20 percent of the excess of the 
                        amount determined under such subparagraph 
                        (determined without regard to this paragraph) 
                        over the amount determined under clause (i).
                    ``(D) Rules similar to the rules of paragraph 
                (13)(C) shall apply.''.
            (2) Alternative minimum tax.--Paragraph (3) of section 
        55(b) of such Code (as amended by the Internal Revenue Service 
        Restructuring and Reform Act of 1998) is amended by adding at 
        the end the following new sentence: ``For purposes of applying 
        this paragraph for a taxable year which includes June 24, 1998, 
        rules similar to the rules of section 1(h)(14) shall apply.''.
    (e) Effective Dates.--
            (1) In general.--Except as otherwise provided in this 
        subsection, the amendments made by this section shall apply to 
        taxable years beginning on or after June 24, 1998.
            (2) Transitional rules for taxable years which include june 
        24, 1998.--The amendments made by subsection (d) shall apply to 
        taxable years beginning before such date and ending on or after 
        June 24, 1998.
            (3) Withholding.--The amendment made by subsection (c)(1) 
        shall apply only to amounts paid after the date of the 
        enactment of this Act.
            (4) Certain conforming amendments.--The amendments made by 
        subsection (c)(5) shall take effect on June 24, 1998.

SEC. 302. REPEAL OF ESTATE AND GIFT TAXES.

    (a) In General.--Subtitle B of the Internal Revenue Code of 1986 
(relating to estate, gift, and generation-skipping taxes) is hereby 
repealed.
    (b) Effective Date.--The repeal made by subsection (a) shall apply 
to estates of decedents dying, gifts made, and generation-skipping 
transfers made after the date of the enactment of this Act.

SEC. 303. PERMANENT EXTENSION OF INCOME AVERAGING FOR FARMERS.

    Section 933(c) of the Taxpayer Relief Act of 1997 (Public Law 104-
34; 111 Stat. 882) is amended by striking ``, and before January 1, 
2001''.
                                 <all>