II 111th CONGRESS 2d Session S. 3568 IN THE SENATE OF THE UNITED STATES July 12, 2010 Mr. Nelson of Florida (for himself, Mr. Cornyn, and Mrs. Feinstein) introduced the following bill; which was read twice and referred to the Committee on Finance A BILL To amend the Trade Act of 1974 to create a Citrus Disease Research and Development Trust Fund to support research on diseases impacting the citrus industry, and for other purposes.

1.

Short title

This Act may be cited as the Citrus Disease Research and Development Trust Fund Act of 2010.

2.

Findings and purposes

(a)

Findings

Congress finds that— (1)duties collected on imports of citrus and citrus products have ranged from $50,000,000 to $87,000,000 annually since 2004, and are projected to increase, as United States production declines due to the effects of huanglongbing (also known as HLB or citrus greening disease) and imports increase in response to the shortfall in the United States; (2)in cases involving other similarly situated agricultural commodities, notably wool, the Federal Government has chosen to divert a portion of the tariff revenue collected on imported products to support efforts of the domestic industry to address challenges facing the industry; (3)citrus and citrus products are a highly nutritious and healthy part of a balanced diet; (4)citrus production is an important part of the agricultural economy in Florida, California, Arizona, and Texas; (5)in the most recent years preceding the date of enactment of this Act, citrus fruits have been produced on 900,000 acres, yielding 11,000,000 tons of citrus products with a value at the farm of more than $3,200,000,000; (6)the commercial citrus sector employs approximately 110,000 people and contributes approximately $13,500,000,000 to the United States economy; (7)the United States citrus industry has suffered billions of dollars in damage from disease and pests, both domestic and invasive, over the decade preceding the date of enactment of this Act, particularly from huanglongbing; (8)huanglongbing threatens the entire United States citrus industry because the disease kills citrus trees; (9)as of the date of enactment of this Act, there are no cost effective or environmentally sound treatments available to suppress or eradicate huanglongbing; (10)United States citrus producers working with Federal and State governments have devoted tens of millions of dollars toward research and efforts to combat huanglongbing and other diseases and pests, but more funding is needed to develop and commercialize disease and pest solutions; (11)although imports constitute an increasing share of the United States market, importers of citrus products into the United States do not directly fund production research in the United States; (12)disease and pest suppression technologies require determinations of safety and solutions must be commercialized before use by citrus producers; (13)the complex processes involved in discovery and commercialization of safe and effective pest and disease suppression technologies are expensive and lengthy and the need for the technologies is urgent; and (14)research to develop solutions to suppress huanglongbing, or other domestic and invasive pests and diseases will benefit all citrus producers and consumers around the world. (b)

Purposes

The purposes of this Act are— (1)to authorize the establishment of a trust funded by certain tariff revenues to support scientific research, technical assistance, and development activities to combat citrus diseases and pests, both domestic and invasive, harming the United States; and (2)to require the President to notify the chairperson and ranking member of the Committee on Finance of the Senate and the Committee on Ways and Means of the House of Representatives before entering into any trade agreement that would decrease the amount of duties collected on imports of citrus products to less than the amount necessary to provide the grants authorized by section 1001(d) of the Trade Act of 1974, as added by section 3(a) of this Act. (c)

Effect on other activities

Nothing in this Act restricts the use of any funds for scientific research and technical activities in the United States.

3.

Citrus disease research and development trust fund

(a)

In general

The Trade Act of 1974 (19 U.S.C. 2102 et seq.) is amended by adding at the end the following: . (b)

Clerical amendment

The table of contents for the Trade Act of 1974 is amended by adding at the end the following: TITLE X—Citrus Disease Research and Development Trust Fund Sec. 1001. Citrus Disease Research and Development Trust Fund. Sec. 1002. Reports required before entering into certain trade agreements. .

4.

Citrus disease research and development board

(a)

Purpose

The purpose of this section is to establish an orderly procedure for the development of an effective and coordinated program of research and product development relating to— (1)scientific research concerning diseases and invasive pests, both domestic and invasive, afflicting the citrus industry; and (2)support for the dissemination and commercialization of relevant information, techniques, and technologies discovered pursuant to research funded through the Citrus Disease Research and Development Trust Fund established under section 1001 of the Trade Act of 1974, as added by section 3(a) of this Act, or through other research projects intended to solve problems caused by citrus production diseases and invasive pests. (b)

Definitions

In this section: (1)

Board

The term Board means the Citrus Research and Development Board established under this section. (2)

Citrus

(A)

In general

The term citrus means edible fruit of the family Rutaceae, commonly called citrus. (B)

Inclusion

The term citrus includes all citrus hybrids that are produced for commercial purposes in the United States. (3)

Conflict of interest

The term conflict of interest means a situation in which a member or employee of the Board has a direct or indirect financial interest in a person that performs a service for, or enters into a contract with, the Board for anything of economic value. (4)

Department

The term Department means the Department of Agriculture. (5)

Order

The term order means the citrus research and development order issued under this section. (6)

Person

The term person means any individual, group of individuals, firm, partnership, corporation, joint stock company, association, cooperative, or other legal entity. (7)

Producer

The term producer means any person that is engaged in the domestic production and commercial sale of citrus in the United States. (8)

Secretary

The term Secretary means the Secretary of Agriculture. (c)

Issuance of orders

(1)

In general

(A)

Issuance

Subject to paragraph (2), the Secretary shall issue an order applicable to domestic citrus producers. (B)

Scope

Any order shall be national in scope. (C)

Single order

Not more than 1 order relating to the purposes of this section shall be in effect at any 1 time. (2)

Procedures

(A)

Publication of proposal

Not later than 60 days after the date of enactment of this Act, the Secretary shall publish a proposed order and give notice and opportunity for public comment on the proposed order. (B)

Issuance of order

(i)

In general

After notice and opportunity for public comment in accordance with subparagraph (A), the Secretary shall issue the order, taking into consideration the comments received and including in the order such provisions as are necessary to ensure that the order is in conformity with this section. (ii)

Effective date

The order shall become effective not later than 45 days after the date of issuance. (3)

Amendments

(A)

In general

The Secretary may periodically amend the order. (B)

Applicability of Act

Any provisions of this Act that are applicable to the order shall be applicable to any amendment to the order. (d)

Required terms in order

(1)

In general

The order shall contain the terms specified in this subsection. (2)

Citrus board

(A)

Establishment and membership

(i)

Establishment

The order shall provide for the establishment of a Citrus Research and Development Board, consisting of 9 members, to administer the order. (ii)

Membership

The order shall provide that members of the Board shall be appointed by the Secretary from nominations submitted in accordance with this paragraph. (B)

Distribution of appointments

The order shall provide that the membership of the Board shall consist of— (i)5 members who are domestic producers of citrus in Florida; (ii)3 members who are domestic producers of citrus in Arizona or California; and (iii)1 member who is a domestic producer of citrus in Texas. (C)

Nomination process

The order shall provide that— (i)2 nominees shall be submitted for each appointment to the Board; and (ii)nominations for each appointment of a producer from a State identified in subparagraph (B)(i) shall be made by the domestic producers in that State through an appointment process that uses nominations from any organization— (I)the members of which consist of citrus producers; and (II)that is in existence on the date of enactment of this Act; and (iii)in any case in which producer organizations fail to nominate individuals for an appointment to the Board, the Secretary may appoint an individual to fill the vacancy on a basis provided in the order or other regulations of the Secretary. (D)

Alternates

The order shall provide for the selection of alternate members of the Board by the Secretary in accordance with procedures specified in the order. (E)

Terms

The order shall provide that each term of appointment to the Board shall be for 5 years. (F)

Disqualification from Board service

The order shall provide that if a member or alternate of the Board who was appointed as a domestic producer ceases to belong to the group for which the member was appointed, the member or alternate shall be disqualified from serving on the Board. (G)

Manner of filling vacancy

A vacancy arising as a result of disqualification or any other reason before the expiration of the term of office of an incumbent member or alternate of the Board shall be filled in a manner provided in the order. (H)

Compensation

The order shall provide that members and alternates of the Board shall serve without compensation, but shall be reimbursed for the reasonable expenses incurred in performing duties as members or alternates of the Board. (3)

General responsibilities of the Board

The order shall define the general responsibilities of the Board, which shall include the responsibilities— (A)to administer the order in accordance with the order; (B)to meet, organize, and select from among the members of the Board a chairperson, other officers, and committees and subcommittees, as the Board determines to be appropriate; (C)to recommend to the Secretary rules and regulations to effectuate the order; (D)to employ such persons as the Board determines are necessary, and set the compensation and define the duties of the persons; (E)(i)to develop budgets for the implementation of the order and submit the budgets to the Secretary for approval under paragraph (4); and (ii)to propose and develop (or receive and evaluate), approve, and submit to the Secretary for approval under paragraph (4) plans or projects for citrus research, including with any private or public research entities the Board determines to be consistent with the purposes of this section; (F)(i)to implement plans and projects for citrus research in accordance with paragraph (4); or (ii)to contract or enter into agreements with appropriate persons to implement the plans and projects under paragraph (5), and pay the costs of the implementation, or contracts and agreement, with funds received under this Act; (G)to evaluate ongoing and completed plans and projects for citrus research in accordance with the order; (H)to receive, investigate, and report to the Secretary complaints of violations of the order; (I)to recommend to the Secretary amendments to the order; (J)to invest, pending disbursement under a plan or project, funds collected through this Act (including income from the funds) only in— (i)obligations of the United States or any agency of the United States; (ii)general obligations of any State or any political subdivision of a State; (iii)any interest-bearing account or certificate of deposit of a bank that is a member of the Federal Reserve System; or (iv)obligations fully guaranteed as to principal and interest by the United States; (K)to borrow funds necessary for the startup expenses of the order; and (L)to provide the Secretary such information as the Secretary may require. (4)

Budgets; plans and projects

(A)

Submission of budgets; plans and projects

(i)

Submission of budgets

The order shall require the Board to submit to the Secretary for approval, budgets, on a fiscal year basis, showing the anticipated expenses and disbursements of the Board in the implementation of the order, including the projected costs of citrus research. (ii)

Submission of plans and projects

The order shall require the Board to submit to the Secretary for approval proposed plans or projects for citrus research, as described under subparagraph (B). (iii)

Affirmative support required

A budget, plan, or project may not be submitted by the Board for recommendation to the Secretary without the affirmative support of at least 7 members of the Board. (B)

Plans and projects

The order shall provide for— (i)the establishment, implementation, administration, and evaluation of plans and projects for scientific research described in subsection (a); (ii)the dissemination of information acquired through the plans and projects; and (iii)the disbursement of such funds as are necessary to carry out this subparagraph. (C)

Intellectual property rights

The order shall provide that the Board may enter into an agreement for the allocation of any intellectual property rights that may arise from research undertaken pursuant to this section or that relate to the commercialization of technologies that further the purposes of this Act. (D)

Approval by Secretary

(i)

In general

A budget, plan, or project for citrus research may not be implemented prior to approval of the budget, plan, or project by the Secretary. (ii)

Notification

Not later than 45 days after receipt of a budget, plan, or project under this section, the Secretary shall notify the Board as to whether the Secretary approves or disapproves the budget, plan, or project. (iii)

Presumptive approval

If the Secretary fails to provide notice in accordance with clause (ii) before the end of the 45-day period, the budget, plan, or project shall be considered to be approved and may be implemented by the Board. (iv)

Failure to recommend a budget

If the Board fails to recommend a budget, the Secretary shall establish a budget for the Board. (5)

Contracts and agreements

(A)

Research plans and projects

(i)

In general

To ensure the efficient use of funds, the order shall provide that the Board, with the approval of the Secretary, may enter into contracts or agreements with public or private entities for— (I)the implementation of a plan or project for citrus research; and (II)the payment of the cost of the contract or agreement with funds received by the Board under the order. (ii)

Requirements

The order shall provide that any contract or agreement entered into under this subparagraph shall provide that— (I)the contracting or agreeing party shall develop and submit to the Board a plan or project and a budget that includes the estimated costs to be incurred for the plan or project; (II)the plan or project shall become effective on the approval of the Secretary; and (III)the contracting party or agreeing party shall— (aa)keep accurate records of all transactions of the party; (bb)account for funds received and expended; and (cc)make periodic reports to the Board of activities conducted; and (IV)make such other reports as the Board or the Secretary shall require. (B)

Other contracts and agreements

(i)

In general

The order shall provide that the Board, with the approval of the Secretary, may enter into a contract or agreement for administrative services. (ii)

Terms

Any contract or agreement entered into under clause (i) shall include term comparable to the terms described in subparagraph (A)(ii), as determined by the Secretary. (6)

Books and records of Board

(A)

In general

The order shall require the Board— (i)to maintain such books and records as the Secretary may require, to be made available to the Secretary for inspection and audit; (ii)to prepare and submit to the Secretary such periodic reports as the Secretary may require; and (iii)to account for the receipt and disbursement of all funds entrusted to the Board. (B)

Audits

(i)

In general

The Board shall have the books and records of the Board audited by an independent auditor at the end of each fiscal year. (ii)

Report

The Board shall submit to the Secretary a report of each audit under clause (i). (7)

Control of administrative costs

(A)

System of cost controls

The order shall provide that the Board shall, as soon as practicable after the order becomes effective and after consultation with the Secretary and other appropriate persons, implement a system of cost controls based on normally accepted business practices that will, to the maximum extent practicable— (i)ensure that the costs incurred by the Board in administering the order in any fiscal year do not exceed the projected level of funds disbursed to the Board for that fiscal year; and (ii)cover the minimum administrative activities and personnel needed— (I)to properly administer and enforce the order; and (II)to conduct, supervise, and evaluate plans and projects under the order. (B)

Use of existing personnel and facilities

The Board shall use, to the maximum extent practicable, the resources, staffs, and facilities of organizations in existence as of the date of enactment of this Act, in accordance with paragraph (5)(A)(i). (8)

Use of funds

The order shall provide that funds disbursed to the Board shall be used— (A)to pay costs incurred in implementing and administering the order, with provision for a reasonable reserve; and (B)to cover the administrative costs incurred by the Secretary in carrying out this section. (9)

Reimbursement of Secretary expenses

The order shall provide for reimbursing the Secretary for administrative costs incurred by the Secretary for supervisory work of up to 2 employee years after an order or amendment to any order has been issued and made effective. (10)

Prohibition on use of funds to influence governmental action

(A)

In general

Except as otherwise provided in subparagraph (B), the order shall prohibit any funds collected by the Board under the order from being used in any manner for the purpose of influencing legislation or government action or policy. (B)

Exception

Subparagraph (A) shall not apply to the development or recommendation of amendments to the order. (11)

Prohibition of conflict of interest

The Board may not engage in, and shall prohibit the employees and agents of the Board from engaging in, any action that would be a conflict of interest. (12)

Consultations with scientific experts

(A)

In general

The order shall provide that the Board may seek advice from and consult with experts from institutions of higher education, government, and industry to assist in the development of research plans and projects consistent with the purposes of this section. (B)

Special committees

(i)

In general

For purposes described in subparagraph (A), the order shall authorize the appointment of special committees composed of persons other than Board members. (ii)

Consultation

A committee appointed under clause (i) shall consult directly with the Board. (C)

Compensation

The order shall authorize the Board to provide compensation to the experts and persons described in subparagraphs (A) and (B) as the Board considers appropriate. (13)

Other terms of the order

The order shall contain such other terms, consistent with this section, as are necessary to carry out this section. (e)

Effect of section

(1)

In general

This section— (A)does not provide for control of production or otherwise limit the right of individual citrus growers, handlers, and importers to produce, handle, or import citrus; and (B)is intended to treat all persons producing, handling, and importing citrus fairly and to implement any order in an equitable manner. (2)

Other programs

Nothing in this section preempts or supersedes any other program relating to citrus promotion, research, industry information, and consumer information organized and operated under any Federal or State law. (3)

Relationship between Secretary and Board

(A)

In general

In carrying out the responsibilities of the Secretary to oversee the disbursement of funds to the Board and the operation of the program under this section, no official or employee of the Department may make decisions as to the best use of funds or shape the program to reflect the personal preference of the official or employee. (B)

Authority of the Board

The Board shall retain sole authority to structure the projects and activities described in this section within the limits established by this section and the order. (C)

Secretarial responsibilities

The Secretary— (i)shall ensure that any programs carried out under this operate in a manner consistent with this section and other applicable law; (ii)shall eliminate any unnecessary regulatory costs or requirements to the citrus industry in carrying out the oversight and regulatory responsibilities of the Secretary; (iii)shall promote the most efficient use of funds; and (iv)may not substitute the judgment of the Secretary for the judgment of the Board or alter any projects or activities described in this section. (f)

Regulations

The Secretary may issue such regulations as are necessary to carry out this section.