[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[S. 1535 Introduced in Senate (IS)]







105th CONGRESS
  1st Session
                                S. 1535

  To provide marketing quotas and a market transition program for the 
 1997 through 2001 crops of quota and additional peanuts, to terminate 
 marketing quotas for the 2002 and subsequent crops of peanuts, and to 
 make nonrecourse loans available to peanut producers for the 2002 and 
          subsequent crops of peanuts, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                           November 13, 1997

Mr. Santorum (for himself, Mr. Lautenberg, Mr. DeWine, Mr. Chafee, Mr. 
    Coats, Mr. Gregg, Mr. Feingold, and Mr. Specter) introduced the 
 following bill; which was read twice and referred to the Committee on 
                  Agriculture, Nutrition, and Forestry

_______________________________________________________________________

                                 A BILL


 
  To provide marketing quotas and a market transition program for the 
 1997 through 2001 crops of quota and additional peanuts, to terminate 
 marketing quotas for the 2002 and subsequent crops of peanuts, and to 
 make nonrecourse loans available to peanut producers for the 2002 and 
          subsequent crops of peanuts, 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; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Peanut Program 
Improvement Act of 1997''.
    (b) Table of Contents.--The table of contents of this Act is as 
follows:

Sec. 1. Short title; table of contents.
                 TITLE I--MARKETING QUOTAS FOR PEANUTS

Sec. 101. Marketing quotas for 1997 through 2001 crops of peanuts.
Sec. 102. Termination of marketing quotas for 2002 and subsequent crops 
                            of peanuts.
            TITLE II--MARKET TRANSITION PROGRAMS FOR PEANUTS

Sec. 201. Market transition program for 1997 through 2001 crops of 
                            quota and additional peanuts.
Sec. 202. Nonrecourse loans for 2002 and subsequent crops of peanuts.
                       TITLE III--IMPLEMENTATION

Sec. 301. Regulations.
Sec. 302. Application.

                 TITLE I--MARKETING QUOTAS FOR PEANUTS

SEC. 101. MARKETING QUOTAS FOR 1997 THROUGH 2001 CROPS OF PEANUTS.

    Effective beginning with the 1997 crop of peanuts, part VI of 
subtitle B of title III of the Agricultural Adjustment Act of 1938 (7 
U.S.C. 1357 et seq.) is amended to read as follows:

                  ``PART VI--MARKETING QUOTAS--PEANUTS

``SEC. 357. DEFINITIONS.

    ``In this part:
            ``(1) Additional peanuts.--The term `additional peanuts' 
        means, for any marketing year--
                    ``(A) any peanuts--
                            ``(i) that are marketed by a person who 
                        possesses a poundage quota that has been 
                        established; and
                            ``(ii) that are in excess of the marketings 
                        of quota peanuts for the person for the year; 
                        or
                    ``(B) all peanuts marketed for which no poundage 
                quota has been established in accordance with section 
                358(b).
            ``(2) Crushing.--The term `crushing' means the processing 
        of peanuts to extract oil for food uses and meal for feed uses, 
        or the processing of peanuts by crushing or otherwise when 
        authorized by the Secretary.
            ``(3) Domestic edible use.--The term `domestic edible use' 
        means use for milling to produce domestic food peanuts (other 
        than a use described in paragraph (2)) and for seed and use on 
        a farm, except that the Secretary may exempt from this 
        paragraph seeds of peanuts that--
                    ``(A) are unique strains; and
                    ``(B) are not commercially available.
            ``(4) Marketing year.--The term `marketing year' means, in 
        the case of peanuts, the 12-month period beginning August 1 and 
        ending July 31.
            ``(5) Person.--The term `person' means a producer, owner, 
        or operator who possesses a quota established under section 
        358(b) or who is involved in the production of additional 
        peanuts.
            ``(6) Quota peanuts.--The term `quota peanuts' means, for 
        any marketing year, any peanuts produced by a person who 
        possesses a poundage quota, as determined under section 358(b), 
        that--
                    ``(A) are eligible for domestic edible use as 
                determined by the Secretary;
                    ``(B) are marketed or considered marketed from a 
                farm, excluding undermarketings; and
                    ``(C) do not exceed the poundage quota for the 
                year.

``SEC. 358. NATIONAL POUNDAGE QUOTAS FOR 1997 THROUGH 2001 CROPS OF 
              PEANUTS.

    ``(a) National Poundage Quotas.--
            ``(1) Establishment.--The Secretary shall establish the 
        national poundage quota for peanuts for each of the 1997 
        through 2001 marketing years.
            ``(2) Advisory committee.--The Secretary shall establish 
        the national poundage quota after considering recommendations 
        from an all-industry advisory committee appointed by the 
        Secretary.
            ``(3) Level.--The Secretary shall establish the national 
        poundage quota at a level that is equal to the quantity of 
        peanuts (in tons) that the Secretary estimates will be devoted 
in each marketing year referred to in paragraph (1) to domestic edible 
and related uses, plus a reasonable quantity of peanuts, as determined 
by the Secretary, for carryover to ensure continuity of supply between 
marketing years. In establishing the quota, the Secretary shall take 
into account--
                    ``(A) any stocks of peanuts on hand in the 
                inventory of the Commodity Credit Corporation;
                    ``(B) peanuts or products of peanuts imported into 
                the United States;
                    ``(C) projected purchases of additional peanuts by 
                the Department of Defense and other Federal and State 
                agencies; and
                    ``(D) additional peanuts used for domestic edible 
                use in a quantity equal to the projected imports of 
                peanuts, products of peanuts, and peanut-containing 
                products.
            ``(4) Announcement.--The national poundage quota for a 
        marketing year shall be announced by the Secretary not later 
        than the December 15 preceding the marketing year.
    ``(b) Poundage Quotas.--
            ``(1) In general.--
                    ``(A) Establishment.--A poundage quota for each of 
                the 1997 through 2001 marketing years shall be 
                established--
                            ``(i) for a person if--
                                    ``(I)(aa) the person held a quota 
                                in the previous marketing year; or
                                    ``(bb) in the case of the 1995 
                                marketing year, quota was assigned to 
                                the farm of the person;
                                unless the quota was sold; and
                                    ``(II) the person has produced or 
                                marketed, or is considered to have 
                                produced or marketed, peanuts in at 
                                least 2 of the 3 immediately preceding 
                                marketing years, as determined by the 
                                Secretary; or
                            ``(ii) as approved and determined by the 
                        Secretary for each person who produces peanuts 
                        in connection with experimental and research 
                        programs.
                    ``(B) Quantity.--
                            ``(i) In general.--The poundage quota for 
                        each of the 1997 through 2001 marketing years 
                        shall not be increased--
                                    ``(I) for undermarketings from any 
                                previous years; or
                                    ``(II) as the result of the 
                                allocation of quotas voluntarily 
                                released for 1 year under paragraph 
                                (6).
                            ``(ii) Increased quota.--The poundage 
                        quota, if any, for each of the 1997 through 
                        2001 marketing years, shall be equal to the 
                        quantity of peanuts allocated under paragraph 
                        (2).
                    ``(C) Transfers.--For purposes of this subsection, 
                if the poundage quota, or any part of the quota, is 
                permanently transferred in accordance with this Act, 
                the receiving person shall be considered as possessing 
                the poundage quota (or part of the quota) of the 
                transferring person as of the date of the transfer and 
                for all subsequent marketing years.
            ``(2) Adjustments.--
                    ``(A) Allocation of increased quota generally.--If 
                the national poundage quota for any of the 1997 through 
                2001 marketing years is increased over the national 
                poundage quota for the immediately preceding marketing 
                year, the increase shall be allocated, proportionately, 
                among persons who possess quota if the persons produced 
                peanuts in at least 2 of the 3 immediately preceding 
                marketing years, as determined by the Secretary.
                    ``(B) Decrease.--If the national poundage quota for 
                any of the 1997 through 2001 marketing years is 
                decreased from the national poundage quota for the 
                immediately preceding marketing year, the decrease 
                shall be allocated, proportionately, among persons who 
                possess a quota if the persons produced peanuts in at 
                least 2 of the 3 immediately preceding marketing years, 
                as determined by the Secretary.
            ``(3) Quota not produced.--
                    ``(A) In general.--Insofar as practicable and on 
                such fair and equitable basis as the Secretary may by 
                regulation prescribe, the poundage quota established 
                for a person for any of the 1997 through 2001 marketing 
                years shall be reduced to the extent that the Secretary 
                determines that the poundage quota established for the 
                person for any 2 of the 3 marketing years preceding the 
                marketing year for which the determination is being 
                made was not produced, or considered produced.
                    ``(B) Exclusions.--For the purposes of this 
                paragraph, the poundage quota for any such preceding 
                marketing year shall not include--
                            ``(i) any increases for undermarketing of 
                        quota peanuts from previous years; or
                            ``(ii) any increase resulting from the 
                        allocation of quotas voluntarily released for 1 
                        year under paragraph (6).
            ``(4) Quota considered produced.--For purposes of this 
        subsection, the poundage quota shall be considered produced by 
        a person if--
                    ``(A) the poundage quota was not produced because 
                of drought, flood, or any other natural disaster, or 
                any other condition beyond the control of the person, 
                as determined by the Secretary; or
                    ``(B) the poundage quota for the person was 
                released voluntarily under paragraph (6) for only 1 of 
                the 3 marketing years immediately preceding the 
                marketing year for which the determination is being 
                made.
            ``(5) Quota permanently released.--
                    ``(A) In general.--The poundage quota established 
                for a person, or any part of the quota, may be 
                permanently released.
                    ``(B) Adjustment of quota.--The poundage quota for 
                the person for which the quota is released shall be 
                adjusted downward to reflect the quota that is 
                released.
                    ``(C) Unused quota.--Any quota not produced, 
                considered produced, or not leased or sold shall be 
                considered permanently released.
            ``(6) Quota temporarily released.--
                    ``(A) In general.--The poundage quota, or any 
                portion of the quota, established for a person for a 
                marketing year may be voluntarily released to the 
                Secretary to the extent that the quota, or any part of 
                the quota, will not be produced by the person for the 
                marketing year. Any poundage quota so released shall be 
                allocated to other persons on such basis as the 
                Secretary may by regulation prescribe.
                    ``(B) Effective period.--Except as otherwise 
                provided in this section, any adjustment in the 
                poundage quota for a person under subparagraph (A) 
                shall be effective only for the marketing year for 
                which the adjustment is made and shall not be taken 
                into consideration in establishing a poundage quota for 
                the person from which the quota was released for any 
                subsequent marketing year.
            ``(7) Released quota.--Any poundage quota permanently 
        released may not be reallocated in the subsequent marketing 
        year.
    ``(c) Referendum Respecting Poundage Quotas.--
            ``(1) In general.--Not later than December 15, 1997, the 
        Secretary shall conduct a referendum of all producers engaged 
        in the production of peanuts to determine whether the producers 
        are in favor of or opposed to poundage quotas with respect to 
        the crops of peanuts produced in the remaining marketing years 
        authorized by this part, except that, if as many as \2/3\ of 
        the producers voting in any referendum vote in favor of 
        poundage quotas, no referendum shall be held with respect to 
        quotas for the remaining marketing years authorized by this 
        part. Each producer voting in the referendum may cast 1 vote.
            ``(2) Proclamation.--The Secretary shall proclaim the 
        result of the referendum within 30 days after the date on which 
        the referendum is held.
            ``(3) Vote against quotas.--If more than \1/3\ of the 
        producers voting in the referendum vote against quotas, the 
        Secretary shall proclaim that poundage quotas will not be in 
        effect for the remaining marketing years authorized by this 
        part.

``SEC. 358A. SALE, LEASE, OR TRANSFER OF POUNDAGE QUOTA FOR 1997 
              THROUGH 2001 CROPS OF PEANUTS.

    ``(a) In General.--Subject to such terms and conditions as the 
Secretary may prescribe, a person for which a poundage quota has been 
established under this Act may sell, lease, or transfer all or any part 
of the poundage quota to any other owner, operator, or producer of 
peanuts without geographic limitation. Sales, leases, or transfers 
shall be allowed so as to rationalize production for owners, operators, 
or producers in areas or regions that may be the most efficient and 
productive.
    ``(b) Treatment of Lessors.--For purposes of this part, a lessor 
who is a person who leases all or any part of a poundage quota for a 
marketing year shall be considered to have produced or marketed the 
quota for that marketing year.
    ``(c) Limits.--A sale, lease, or transfer of poundage quotas under 
this section shall be subject to the following conditions:
            ``(1) Lienholders.--No transfer of the poundage quota from 
        a farm subject to a mortgage or other lien is effective unless 
        the transfer is agreed to by the lienholders.
            ``(2) Record.--No transfer of the poundage quota shall be 
        effective until the Secretary and all lienholders are given 
        notice of the transfer, as determined by the Secretary.
            ``(3) Limitation.--The Secretary may not establish a 
        limitation on the quantity or geographical location of poundage 
        quota that may be transferred.
            ``(4) Other terms.--The Secretary may establish by 
        regulation other terms and conditions.

``SEC. 358B. MARKETING PENALTIES AND DISPOSITION OF ADDITIONAL PEANUTS 
              FOR 1997 THROUGH 2001 CROPS OF PEANUTS.

    ``(a) Marketing Penalties.--
            ``(1) In general.--
                    ``(A) Marketing peanuts in excess of quota.--The 
                marketing of any peanuts for domestic edible use in 
                excess of the poundage quota for a person shall be 
                subject to a penalty at a rate equal to 140 percent of 
                the support price for quota peanuts for the marketing 
                year in which the marketing occurs. The penalty shall 
                not apply to the marketing of breeder or Foundation 
                seed peanuts grown and marketed by a publicly owned 
                agricultural experiment station (including a State 
                operated seed organization), nor to additional peanuts 
                marketed under contracts between handlers and producers 
                under subsection (e).
                    ``(B) Marketing additional peanuts.--The marketing 
                of any additional peanuts shall be subject to the same 
                penalty as the penalty prescribed in subparagraph (A) 
                unless the peanuts, in accordance with regulations 
                established by the Secretary, are--
                            ``(i) placed under loan at the additional 
                        loan rate in effect for the peanuts under 
                        section 155 of the Agricultural Market 
                        Transition Act (7 U.S.C. 7271) and not redeemed 
                        by the producers;
                            ``(ii) marketed or used for seed in 
                        accordance with regulations issued by the 
                        Secretary, and under the supervision of agents 
                        designated by the Secretary; or
                            ``(iii) marketed under contracts between 
                        handlers and producers pursuant to subsection 
                        (e).
            ``(2) Payer.--The penalty shall be paid by the person who 
        buys or otherwise acquires the peanuts from the producer or, if 
        the peanuts are marketed by the producer through an agent, the 
        penalty shall be paid by the agent. The person or agent may 
        deduct an amount equivalent to the penalty from the price paid 
        to the producer.
            ``(3) Failure to collect.--If the person required to 
        collect the penalty fails to collect the penalty, the person 
        and all persons entitled to share in the peanuts marketed from 
        the farm or the proceeds of the marketing shall be jointly and 
        severally liable with the person who failed to collect the 
        penalty for the amount of the penalty.
            ``(4) Application of quota.--Peanuts produced in a calendar 
        year in which poundage quotas are in effect for the marketing 
        year beginning in the calendar year shall be subject to the 
        quotas even though the peanuts are marketed prior to the date 
        on which the marketing year begins.
            ``(5) False information.--If any producer falsely 
        identifies, fails to accurately certify planted acres, or fails 
        to account for the disposition of any peanuts produced on the 
        planted acres, a quantity of peanuts equal to the greater of 
        the average or actual yield of the farm, as determined by the 
        Secretary, multiplied by the number of planted acres, shall be 
        deemed to have been marketed in violation of permissible uses 
        of quota and additional peanuts. Any penalty payable under this 
        paragraph shall be paid and remitted by the producer.
            ``(6) Unintentional violations.--The Secretary shall 
        authorize, under such regulations as the Secretary shall issue, 
        the county committees established under section 8(b) of the 
        Soil Conservation and Domestic Allotment Act (16 U.S.C. 
        590h(b)) to waive or reduce marketing penalties provided for 
        under this subsection in cases which the committees determine 
        that the violations that were the basis of the penalties were 
        unintentional or without knowledge on the part of the parties 
        concerned.
            ``(7) De minimis violations.--An error in weight that does 
        not exceed \1/10\ of 1 percent in the case of any 1 marketing 
        document shall not be considered to be a marketing violation 
        except in a case of fraud or conspiracy.
    ``(b) Use of Quota and Additional Peanuts.--
            ``(1) Quota peanuts.--Quota peanuts may be retained for use 
        on a farm. If the peanuts are used on the farm, the peanuts 
shall be considered marketed.
            ``(2) Additional peanuts.--Additional peanuts may be sold 
        for seed or used on a farm and may not be marketed for domestic 
        edible use, except as provided in subsection (e) and section 
        155(a)(5) of the Agricultural Market Transition Act (7 U.S.C. 
        7271(a)(5)). If the peanuts are used on the farm, the peanuts 
        shall be considered marketed.
    ``(c) Marketing Peanuts With Excess Quantity, Grade, or Quality.--
On a finding by the Secretary that the peanuts marketed from any crop 
for domestic edible use by a handler are larger in quantity or higher 
in grade or quality than the peanuts that could reasonably be produced 
from the quantity of peanuts having the grade, kernel content, and 
quality of the quota peanuts acquired by the handler from the crop for 
the marketing, the handler shall be subject to a penalty equal to 140 
percent of the loan level for quota peanuts on the quantity of peanuts 
that the Secretary determines are in excess of the quantity, grade, or 
quality of the peanuts that could reasonably have been produced from 
the peanuts so acquired.
    ``(d) Handling and Disposal of Additional Peanuts.--
            ``(1) In general.--A handler who provides adequate 
        assurances to the Secretary under paragraph (3) shall be 
        eligible to handle, process, and export additional peanuts.
            ``(2) Supervision by handlers.--
                    ``(A) In general.--Supervision of the handling and 
                disposal of additional peanuts by a handler shall not 
                be required if the handler agrees in writing, prior to 
                any handling or disposal of the peanuts, to comply with 
                regulations that the Secretary shall issue.
                    ``(B) Regulations.--The regulations issued by the 
                Secretary shall include the following:
                            ``(i) Types of exported or crushed 
                        peanuts.--Handlers of shelled or milled peanuts 
                        may export or crush--
                                    ``(I) sound split kernel additional 
                                peanuts purchased by the handler that 
                                are discounted due to the percentage of 
                                sound splits per pound;
                                    ``(II) sound mature kernel 
                                additional peanuts in an amount equal 
                                to the poundage of the additional 
                                peanuts purchased by the handler, less 
                                the total poundage of sound split 
                                kernel peanuts; and
                                    ``(III) the remaining quantity of 
                                additional peanuts purchased by the 
                                handler.
                            ``(ii) Documentation.--A handler shall 
                        ensure that any additional peanuts exported or 
                        crushed are evidenced by onboard bills of 
                        lading or other appropriate documentation as 
                        may be required by the Secretary.
                            ``(iii) Loss of peanuts.--If a handler 
                        suffers a loss of peanuts as a result of fire, 
                        flood, or any other condition beyond the 
                        control of the handler, the portion of the loss 
                        allocated to contracted additional peanuts 
                        shall not be greater than the portion of the 
                        total peanut purchases of the handler for the 
                        year for export or crushing.
                            ``(iv) Shrinkage allowance.--
                                    ``(I) In general.--The obligation 
                                of a handler to export or crush peanuts 
                                in quantities described in this 
                                subparagraph shall be reduced by a 
                                shrinkage allowance, to be determined 
                                by the Secretary, to reflect actual 
                                dollar value shrinkage experienced by 
                                handlers in commercial operations, 
                                except that the allowance shall not be 
                                less than 4 percent.
                                    ``(II) Common industry practices.--
                                The Secretary may provide a lower 
                                shrinkage allowance for a handler who 
                                fails to comply with shrinkage criteria 
                                specified by the Secretary, taking into 
                                account common industry practice.
            ``(3) Adequate finances and facilities.--A handler shall 
        submit to the Secretary adequate assurances that the handler is 
        fiscally sound. The Secretary shall not require proof of 
        capacity to process peanuts.
            ``(4) Commingling of like peanuts.--Quota and additional 
        peanuts of like type and segregation or quality may, under 
        regulations issued by the Secretary, be commingled and 
        exchanged on a dollar value basis to facilitate warehousing, 
        handling, and marketing.
            ``(5) Penalty.--
                    ``(A) In general.--Except as provided in 
                subparagraph (B), the failure by a handler to comply 
                with regulations issued by the Secretary governing the 
                disposition and handling of additional peanuts shall 
                subject the handler to a penalty at a rate equal to 140 
                percent of the loan level for quota peanuts on the 
                quantity of peanuts involved in the violation.
                    ``(B) Nondelivery.--A handler shall not be subject 
                to a penalty for failure to export additional peanuts 
                if the peanuts were not delivered to the handler.
            ``(6) Reentry of exported peanuts.--
                    ``(A) Penalty.--If any additional peanuts exported 
                by a handler are reentered into the United States in 
                commercial quantities as determined by the Secretary, 
                the importer of the peanuts shall be subject to a 
                penalty at a rate equal to 140 percent of the loan 
                level for quota peanuts on the quantity of peanuts 
                reentered.
                    ``(B) Records.--Each person, firm, or handler who 
                imports peanuts into the United States shall maintain 
                such records and documents as are required by the 
                Secretary to ensure compliance with this subsection.
    ``(e) Contracts for Purchase of Additional Peanuts.--
            ``(1) In general.--Handlers may, under such regulations as 
        the Secretary may issue, contract with producers for the 
        purchase of additional peanuts for--
                    ``(A) crushing;
                    ``(B) export;
                    ``(C) use as seed;
                    ``(D) sale to the Department of Defense or another 
                agency of the Federal, State, or local government;
                    ``(E) domestic edible use in a quantity equal to 
                the projected imports of peanuts, products of peanuts, 
                and peanut-containing products; or
                    ``(F) any combination of the uses referred to in 
                subparagraphs (A) through (E).
            ``(2) Information for handling and processing additional 
        peanuts.--Any person wishing to handle or process additional 
        peanuts as a handler shall submit to the Secretary such 
        information as the Secretary may require.
            ``(3) Suspension of restrictions on imported peanuts.--
        Notwithstanding any other provision of this Act, if the 
        President issues a proclamation under section 404(b) of the 
        Uruguay Round Agreements Act (19 U.S.C. 3601(b)) expanding the 
        quantity of peanuts subject to the in-quota rate of duty under 
        a tariff-rate quota, or under section 22 of the Agricultural 
        Adjustment Act (7 U.S.C. 624), reenacted with amendments by the 
        Agricultural Marketing Agreement Act of 1937, temporarily 
        suspending restrictions on the importation of peanuts, the 
        Secretary shall, subject to such terms and conditions as the 
        Secretary may prescribe, permit a handler, with the written 
        consent of the producer, to purchase additional peanuts from 
        any producer who contracted with the handler and to offer the 
        peanuts for sale for domestic edible use.
    ``(f) Administration.--
            ``(1) Interest.--The person liable for payment or 
        collection of any penalty provided for in this section shall be 
        liable also for interest on the penalty at a rate per annum 
        equal to the rate per annum of interest that was charged the 
        Commodity Credit Corporation by the Treasury of the United 
        States on the date the penalty became due.
            ``(2) De minimis quantity.--This section shall not apply to 
        peanuts produced on any farm on which the acreage harvested for 
        peanuts is 1 acre or less if the producers who share in the 
        peanuts produced on the farm do not share in the peanuts 
        produced on any other farm.
            ``(3) Liens.--Until the amount of the penalty provided by 
        this section is paid, a lien on the crop of peanuts with 
        respect to which the penalty is incurred, and on any subsequent 
        crop of peanuts subject to poundage quotas in which the person 
        liable for payment of the penalty has an interest, shall be in 
        effect in favor of the United States.
            ``(4) Information.--A person possessing a poundage quota, 
        and a producer of additional peanuts, shall provide any 
        information required by the Secretary to carry out this 
        section.
            ``(5) Penalties.--
                    ``(A) Procedures.--The liability for and the amount 
                of any penalty assessed under this section shall be 
                determined in accordance with such procedures as the 
                Secretary may prescribe by regulation. The facts 
                constituting the basis for determining the liability 
                for or amount of any penalty assessed under this 
                section, when officially determined in conformity with 
                the applicable regulations prescribed by the 
Secretary, shall be final and conclusive and shall not be reviewable by 
any other officer or agency of the Federal Government.
                    ``(B) Judicial review.--Nothing in this section 
                prohibits any court of competent jurisdiction from 
                reviewing any determination made by the Secretary with 
                respect to whether the determination was made in 
                conformity with the applicable law.
            ``(6) Reduction of penalties.--The Secretary may reduce the 
        amount of any penalty assessed against a handler under this 
        section by any appropriate amount, including, in an appropriate 
        case, eliminating the penalty entirely, if the Secretary finds 
        that the violation on which the penalty is based was minor or 
        inadvertent, and that the reduction of the penalty will not 
        impair the operation of the peanut program.

``SEC. 358C. EXPERIMENTAL AND RESEARCH PROGRAMS FOR PEANUTS.

    ``(a) In General.--The Secretary may permit a portion of the 
national poundage quota for peanuts established under section 358(a) to 
be provided to land-grant institutions identified in the Act of May 8, 
1914 (38 Stat. 372, chapter 79; 7 U.S.C. 341 et seq.), and colleges 
eligible to receive funds under the Act of August 30, 1890 (26 Stat. 
419, chapter 841; 7 U.S.C. 321 et seq.), including Tuskegee Institute 
and, as appropriate, the Agricultural Research Service of the 
Department of Agriculture, to be used for experimental and research 
purposes.
    ``(b) Quantity.--The quantity of the quota allocated to an 
institution under this section shall not exceed the quantity of the 
quota held by each such institution during the 1995 marketing year.
    ``(c) Limitation.--The director of an agricultural experiment 
station shall be required to ensure, to the extent practicable, that 
participating farm operators or producers who do not produce quota 
peanuts under subsection (a) in excess of the quantity needed for 
experimental and research purposes.

``SEC. 358D. CROPS.

    ``This part shall be effective only for the 1997 through 2001 crops 
of peanuts.''.

SEC. 102. TERMINATION OF MARKETING QUOTAS FOR 2002 AND SUBSEQUENT CROPS 
              OF PEANUTS.

    (a) In General.--Effective beginning with the 2002 crop of peanuts, 
part VI of subtitle B of title III of the Agricultural Adjustment Act 
of 1938 (7 U.S.C. 1357 et seq.) is repealed.
    (b) Conforming Amendments.--
            (1) Administrative provisions.--Section 361 of the 
        Agricultural Adjustment Act of 1938 (7 U.S.C. 1361) is amended 
        by striking ``peanuts,''.
            (2) Adjustment of quotas.--Section 371 of the Agricultural 
        Adjustment Act of 1938 (7 U.S.C. 1371) is amended--
                    (A) in the first sentence of subsection (a), by 
                striking ``peanuts,''; and
                    (B) in the first sentence of subsection (b), by 
                striking ``peanuts''.
            (3) Reports and records.--Section 373 of the Agricultural 
        Adjustment Act of 1938 (7 U.S.C. 1373) is amended--
                    (A) in the first sentence of subsection (a)--
                            (i) by striking ``peanuts,'' each place it 
                        appears;
                            (ii) by inserting ``and'' after ``from 
                        producers,''; and
                            (iii) by striking ``for producers, all'' 
                        and all that follows through the period at the 
                        end of the sentence and inserting ``for 
                        producers.''; and
                    (B) in subsection (b), by striking ``peanuts,''.
            (4) Eminent domain.--Section 378(c) of the Agricultural 
        Adjustment Act of 1938 (7 U.S.C. 1378(c)) is amended in the 
        first sentence--
                    (A) by striking ``cotton,'' and inserting ``cotton 
                and''; and
                    (B) by striking ``and peanuts,''.
    (c) Crops.--This section and the amendments made by this section 
shall become effective beginning with the 2002 crop of peanuts.

            TITLE II--MARKET TRANSITION PROGRAMS FOR PEANUTS

SEC. 201. MARKET TRANSITION PROGRAM FOR 1997 THROUGH 2001 CROPS OF 
              QUOTA AND ADDITIONAL PEANUTS.

    Effective beginning with the 1997 crop of peanuts, section 155 of 
the Agricultural Market Transition Act (7 U.S.C. 7271) is amended to 
read as follows:

``SEC. 155. PEANUT PROGRAM.

    ``(a) Quota Peanuts.--
            ``(1) In general.--The Secretary shall make nonrecourse 
        loans available to producers of each of the 1997 through 2001 
        crops of quota peanuts.
            ``(2) Disbursement.--The Secretary shall initially disburse 
        only 85 percent of the loans required under paragraph (1) to 
        producers for the 1997 crop, and 80 percent of the loans for 
each of the 1998, 1999, 2000, and 2001 crops, and provide for the 
disbursement to producers at maturity of any balances due the producers 
on the loans that may remain to be settled at maturity. The remainder 
of the loans shall be paid only if payment would result in no net cost 
to the Commodity Credit Corporation for the immediately preceding and 
current crops of quota peanuts.
            ``(3) Support rates.--The national average quota support 
        rate for quota peanuts shall not be more than $610 per ton for 
        the 1997 crop, $550 per ton for the 1998 crop, $515 per ton for 
        the 1999 crop, $480 per ton for the 2000 crop, and $445 per ton 
        for the 2001 crop.
            ``(4) Inspection, handling, or storage.--The levels of 
        support determined under paragraph (3) shall not be reduced by 
        any deduction for inspection, handling, or storage.
            ``(5) Marketing of peanuts owned or controlled by the 
        commodity credit corporation.--Any peanuts owned or controlled 
        by the Commodity Credit Corporation may be made available for 
        domestic edible use, in accordance with regulations issued by 
        the Secretary and sales price restrictions applicable to the 
        Corporation.
            ``(6) Location and other factors.--The Secretary may make 
        adjustments for location of peanuts and such other factors as 
        are authorized by section 403.
    ``(b) Additional Peanuts.--The Secretary shall make nonrecourse 
loans available to producers of each of the 1997 through 2001 crops of 
additional peanuts at such levels as the Secretary considers 
appropriate, taking into consideration the demand for peanut oil and 
peanut meal, the expected prices of other vegetable oils and protein 
meals, and the demand for peanuts in foreign markets, except that the 
Secretary shall set the support rate on additional peanuts at a level 
estimated by the Secretary to ensure that there are no losses to the 
Commodity Credit Corporation on the sale or disposal of the peanuts.
    ``(c) Pools for Quota and Additional Peanuts.--
            ``(1) In general.--The Secretary shall require a 
        participating marketing association to establish pools and 
        maintain complete and accurate records by area and segregation 
        for quota peanuts handled under loan and for additional peanuts 
        placed under loan, except that separate pools shall be 
        established for Valencia peanuts produced in New Mexico. Bright 
        hull and dark hull Valencia peanuts shall be considered as 
        separate types for the purpose of establishing the pools.
            ``(2) Net gains.--Net gains on peanuts in each pool, unless 
        otherwise approved by the Secretary, shall be distributed only 
        to producers who placed peanuts in the pool and shall be 
        distributed in proportion to the value of the peanuts placed in 
        the pool by each producer. Net gains for peanuts in each pool 
        shall consist of the net gains over and above the loan 
        indebtedness and other costs or losses incurred on peanuts 
        placed in the pool.
            ``(3) Losses.--A loss in an area quota pool shall be offset 
        by any gain or profit from other area quota pools (other than 
        the quota pool for Valencia peanuts for New Mexico). A quota 
        pool shall be administered at no cost to the Commodity Credit 
        Corporation.
    ``(d) Disapproval of Quotas.--No loan may be made available by the 
Secretary for any crop of peanuts with respect to which poundage quotas 
have been disapproved by producers, as provided for in section 358(c) 
of the Agricultural Adjustment Act of 1938 (7 U.S.C. 1358(c)).
    ``(e) Marketing Assessment.--
            ``(1) Definition of first purchaser.--In this subsection, 
        the term `first purchaser' means a person acquiring peanuts 
        from a producer, except that in the case of peanuts forfeited 
        by a producer to the Commodity Credit Corporation, the term 
        means the person acquiring the peanuts from the Commodity 
        Credit Corporation.
            ``(2) Assessment.--The Secretary shall provide, by 
        regulation, for a nonrefundable marketing assessment applicable 
        to each of the 1997 through 2001 crops of peanuts. The 
        assessment shall be made in accordance with this subsection and 
        shall be on a per pound basis in an amount equal to 1.2 percent 
        of the national average quota or additional peanut support rate 
        per pound, as applicable, for the applicable crop. No peanuts 
        shall be assessed more than 1.2 percent of the applicable 
        support rate under this subsection.
            ``(3) First purchasers.--Except as provided under 
        paragraphs (4) and (5), the first purchaser of peanuts shall--
                    ``(A) collect from the producer a marketing 
                assessment equal to the quantity of peanuts acquired 
                multiplied by .65 percent of the applicable national 
                average support rate;
                    ``(B) pay, in addition to the amount collected 
                under subparagraph (A), a marketing assessment in an 
                amount equal to the quantity of peanuts acquired 
                multiplied by .55 percent of the applicable national 
                average support rate; and
                    ``(C) remit the amounts required under 
                subparagraphs (A) and (B) to the Commodity Credit 
                Corporation in a manner specified by the Secretary.
            ``(4) Other private marketings.--In the case of a private 
        marketing by a producer directly to a consumer through a retail 
        or wholesale outlet or in the case of a marketing by the 
        producer outside of the continental United States, the producer 
        shall be responsible for the full amount of the assessment and 
        shall remit the assessment by such time as is specified by the 
        Secretary.
            ``(5) Loan peanuts.--In the case of peanuts that are 
        pledged as collateral for a loan made under this section, \1/2\ 
        of the assessment shall be deducted from the proceeds of the 
        loan. The remainder of the assessment shall be paid by the 
        first purchaser of the peanuts. For the purposes of computing 
net gains on peanuts under this section, the reduction in loan proceeds 
shall be treated as having been paid to the producer.
            ``(6) Penalties.--If any person fails to collect or remit 
        the reduction required by this subsection or fails to comply 
        with such requirements for recordkeeping or otherwise as are 
        required by the Secretary to carry out this subsection, the 
        person shall be liable to the Secretary for a civil penalty up 
        to an amount determined by multiplying--
                    ``(A) the quantity of peanuts involved in the 
                violation; by
                    ``(B) the national average quota support rate for 
                the applicable crop year.
            ``(7) Enforcement.--The Secretary may enforce this 
        subsection in the courts of the United States.
    ``(f) Commodity Credit Corporation.--The Secretary shall carry out 
the program authorized by this section through the Commodity Credit 
Corporation.
    ``(g) Crops.--This section shall be effective for the 1997 through 
2001 crops of peanuts.''.

SEC. 202. NONRECOURSE LOANS FOR 2002 AND SUBSEQUENT CROPS OF PEANUTS.

    Effective beginning with the 2002 crop of peanuts, section 155 of 
the Agricultural Market Transition Act (7 U.S.C. 7271) is amended to 
read as follows:

``SEC. 155. PEANUT PROGRAM.

    ``(a) In General.--
            ``(1) Loans.--The Secretary shall make nonrecourse loans 
        available to producers of peanuts for each of the 2002 and 
        subsequent crops of peanuts.
            ``(2) Rate.--In carrying out paragraph (1), the Secretary 
        shall offer to all peanut producers nonrecourse loans at a 
        level not less than 85 percent of the simple average price 
        received by producers for peanuts, as determined by the 
        Secretary, during the marketing year for each of the 
        immediately preceding 5 crops of peanuts, excluding the year in 
        which the average price was the highest and the year in which 
        the average price was the lowest during the period, but not 
        more than $350 per ton. The loans shall be administered at no 
        net cost to the Commodity Credit Corporation.
            ``(3) Inspection, handling, or storage.--The levels of 
        support determined under paragraph (2) shall not be reduced by 
        any deduction for inspection, handling, or storage.
            ``(4) Marketing of peanuts owned or controlled by the 
        commodity credit corporation.--Any peanuts owned or controlled 
        by the Commodity Credit Corporation may be made available for 
        domestic edible use, in accordance with regulations issued by 
        the Secretary, so long as doing so results in no net cost to 
        the Commodity Credit Corporation.
            ``(5) Location and other factors.--The Secretary may make 
        adjustments for the location of peanuts and such other factors 
        as are authorized by section 403.
            ``(6) Announcement.--The Secretary shall announce the level 
        of support for each crop of peanuts not later than the February 
        15 preceding the marketing year for which the level of support 
        is being determined.
    ``(b) Commodity Credit Corporation.--The Secretary shall carry out 
the program authorized by this section through the Commodity Credit 
Corporation.
    ``(c) Crops.--This section shall be effective for each of the 2002 
and subsequent crops of peanuts.''.

                       TITLE III--IMPLEMENTATION

SEC. 301. REGULATIONS.

    The Secretary of Agriculture shall issue such regulations as are 
necessary to carry out this Act and the amendments made by this Act.

SEC. 302. APPLICATION.

    (a) Crops.--Except as otherwise specifically provided in this Act, 
this Act and the amendments made by this Act shall apply beginning with 
the 1997 crop of peanuts.
    (b) Prior Crops.--Except as otherwise specifically provided and 
notwithstanding any other provision of law, this Act and the amendments 
made by this Act shall not affect the authority of the Secretary of 
Agriculture to carry out a market transition or production adjustment 
program for any of the 1991 through 1996 crops of peanuts established 
under a provision of law in effect immediately before the enactment of 
this Act.
                                 <all>