[Congressional Record Volume 146, Number 125 (Tuesday, October 10, 2000)]
[House]
[Pages H9602-H9607]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




         GRAIN STANDARDS AND WAREHOUSE IMPROVEMENT ACT OF 2000

  Mr. BARRETT of Nebraska. Mr. Speaker, I move to suspend the rules and 
pass the bill (H.R. 4788) to amend the United States Grain Standards 
Act to extend the authority of the Secretary of Agriculture to collect 
fees to cover the cost of services performed under the Act, to extend 
the authorization of appropriations for the Act, and to improve the 
administration of the Act, as amended.
  The Clerk read as follows:

                               H.R. 4788

       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 ``Grain 
     Standards and Warehouse Improvement Act of 2000''.
       (b) Table of Contents.--The table of contents of this Act 
     is as follows:

Sec. 1. Short title; table of contents.

                        TITLE I--GRAIN STANDARDS

Sec. 101. Sampling for export grain.
Sec. 102. Geographic boundaries for official agencies.
Sec. 103. Authorization to collect fees.
Sec. 104. Testing of equipment.
Sec. 105. Limitation on administrative and supervisory costs.
Sec. 106. Licenses and authorizations.
Sec. 107. Grain additives.
Sec. 108. Authorization of appropriations.
Sec. 109. Advisory committee.
Sec. 110. Conforming amendments.
Sec. 111. Special effective date for certain expired provisions.

                          TITLE II--WAREHOUSES

Sec. 201. Storage of agricultural products in warehouses.
Sec. 202. Regulations.

                        TITLE I--GRAIN STANDARDS

     SEC. 101. SAMPLING FOR EXPORT GRAIN.

       Section 5(a)(1) of the United States Grain Standards Act (7 
     U.S.C. 77(a)(1)) is amended by striking ``(on the basis'' and 
     all that follows through ``from the United States)''.

     SEC. 102. GEOGRAPHIC BOUNDARIES FOR OFFICIAL AGENCIES.

       (a) Inspection Authority.--Section 7(f) of the United 
     States Grain Standards Act (7 U.S.C. 79(f)) is amended by 
     striking paragraph (2) and inserting the following:
       ``(2) Geographic boundaries for official agencies.--Not 
     more than 1 official agency designated under paragraph (1) or 
     State delegated authority under subsection (e)(2) to carry 
     out the inspection provisions of this Act shall be operative 
     at the same time in any geographic area defined by the 
     Secretary, except that, if the Secretary determines that the 
     presence of more than 1 designated official agency in the 
     same geographic area will not undermine the policy stated in 
     section 2, the Secretary may--
       ``(A) allow more than 1 designated official agency to carry 
     out inspections within the same geographical area as part of 
     a pilot program; and
       ``(B) allow a designated official agency to cross boundary 
     lines to carry out inspections in another geographic area if 
     the Secretary also determines that--
       ``(i) the current designated official agency for that 
     geographic area is unable to provide inspection services in a 
     timely manner;
       ``(ii) a person requesting inspection services in that 
     geographic area has not been receiving official inspection 
     services from the current designated official agency for that 
     geographic area; or
       ``(iii) a person requesting inspection services in that 
     geographic area requests a probe inspection on a barge-lot 
     basis.''.
       (b) Weighing Authority.--Section 7A(i) of the United States 
     Grain Standards Act (7 U.S.C. 79a(i)) is amended--
       (1) by striking ``(i) No'' and inserting the following:
       ``(i) Unauthorized Weighing Prohibited.--
       ``(1) In general.--No'';
       (2) by striking the second sentence; and
       (3) by adding at the end the following:
       ``(2) Geographic boundaries for official agencies.--Not 
     more than 1 designated official agency referred to in 
     paragraph (1) or State agency delegated authority pursuant to 
     subsection (c)(2) to carry out the weighing provisions of 
     this Act shall be operative at the same time in any 
     geographic area defined by the Secretary, except that, if the

[[Page H9603]]

     Secretary determines that the presence of more than 1 
     designated official agency in the same geographic area will 
     not undermine the policy stated in section 2, the Secretary 
     may--
       ``(A) allow more than 1 designated official agency to carry 
     out the weighing provisions within the same geographical area 
     as part of a pilot program; and
       ``(B) allow a designated official agency to cross boundary 
     lines to carry out the weighing provisions in another 
     geographic area if the Secretary also determines that--
       ``(i) the current designated official agency for that 
     geographic area is unable to provide the weighing services in 
     a timely manner; or
       ``(ii) a person requesting weighing services in that 
     geographic area has not been receiving official weighing 
     services from the current designated official agency for that 
     geographic area.''.

     SEC. 103. AUTHORIZATION TO COLLECT FEES.

       (a) Inspection and Supervisory Fees.--Section 7(j)(4) of 
     the United States Grain Standards Act (7 U.S.C. 79(j)(4)) is 
     amended in the first sentence by striking ``2000'' and 
     inserting ``2005''.
       (b) Weighing and Supervisory Fees.--Section 7A(l)(3) of the 
     United States Grain Standards Act (7 U.S.C. 79a(l)(3)) is 
     amended in the first sentence by striking ``2000'' and 
     inserting ``2005''.

     SEC. 104. TESTING OF EQUIPMENT.

       Section 7B(a) of the United States Grain Standards Act (7 
     U.S.C. 79b(a)) is amended in the first sentence by striking 
     ``but at least annually and''.

     SEC. 105. LIMITATION ON ADMINISTRATIVE AND SUPERVISORY COSTS.

       Section 7D of the United States Grain Standards Act (7 
     U.S.C. 79d) is amended--
       (1) by striking ``2000'' and inserting ``2005''; and
       (2) by striking ``40 per centum'' and inserting ``30 
     percent''.

     SEC. 106. LICENSES AND AUTHORIZATIONS.

       Section 8(a)(3) of the United States Grain Standards Act (7 
     U.S.C. 84(a)(3)) is amended by inserting ``inspection, 
     weighing,'' after ``laboratory testing,''.

     SEC. 107. GRAIN ADDITIVES.

       Section 13(e)(1) of the United States Grain Standards Act 
     (7 U.S.C. 87b(e)(1)) is amended by inserting ``, or prohibit 
     disguising the quality of grain,'' after ``sound and pure 
     grain''.

     SEC. 108. AUTHORIZATION OF APPROPRIATIONS.

       Section 19 of the United States Grain Standards Act (7 
     U.S.C. 87h) is amended by striking ``2000'' and inserting 
     ``2005''.

     SEC. 109. ADVISORY COMMITTEE.

       Section 21(e) of the United States Grain Standards Act (7 
     U.S.C. 87j(e)) is amended by striking ``2000'' and inserting 
     ``2005''.

     SEC. 110. CONFORMING AMENDMENTS.

       (a) Obsolete Studies and Reports.--Section 8 of the United 
     States Grain Standards Act of 1976 (7 U.S.C. 79 note; Public 
     Law 94-582) is amended--
       (1) by striking ``(a)''; and
       (2) by striking subsection (b).
       (b) Temporary Authorities and Study.--Sections 23, 24, and 
     25 of the United States Grain Standards Act of 1976 (7 U.S.C. 
     87e-1, 7 U.S.C. 76 note; Public Law 94-582) are repealed.
       (c) Transitional Provision.--Section 27 of the United 
     States Grain Standards Act of 1976 (7 U.S.C. 74 note; Public 
     Law 94-582) is amended by striking ``; and thereafter'' and 
     all that follows and inserting a period.

     SEC. 111. SPECIAL EFFECTIVE DATE FOR CERTAIN EXPIRED 
                   PROVISIONS.

       The amendments made by sections 103, 105, 108, and 109 
     shall take effect as if enacted on September 30, 2000.

                          TITLE II--WAREHOUSES

     SEC. 201. STORAGE OF AGRICULTURAL PRODUCTS IN WAREHOUSES.

       The United States Warehouse Act (7 U.S.C. 241 et seq.) is 
     amended to read as follows:

     ``SECTION 1. SHORT TITLE.

       ``This Act may be cited as the `United States Warehouse 
     Act'.

     ``SEC. 2. DEFINITIONS.

       ``In this Act:
       ``(1) Agricultural product.--The term `agricultural 
     product' means an agricultural commodity, as determined by 
     the Secretary, including a processed product of an 
     agricultural commodity.
       ``(2) Approval.--The term `approval' means the consent 
     provided by the Secretary for a person to engage in an 
     activity authorized by this Act.
       ``(3) Department.--The term `Department' means the 
     Department of Agriculture.
       ``(4) Electronic document.--The term `electronic document' 
     means a document that is generated, sent, received, or stored 
     by electronic, optical, or similar means, including 
     electronic data interchange, electronic mail, telegram, 
     telex, or telecopy.
       ``(5) Electronic receipt.--The term `electronic receipt' 
     means a receipt that is authorized by the Secretary to be 
     issued or transmitted under this Act in the form of an 
     electronic document.
       ``(6) Holder.--The term `holder' means a person that has 
     possession in fact or by operation of law of a receipt or any 
     electronic document.
       ``(7) Person.--The term `person' means--
       ``(A) a person (as defined in section 1 of title 1, United 
     States Code);
       ``(B) a State; and
       ``(C) a political subdivision of a State.
       ``(8) Receipt.--The term `receipt' means a warehouse 
     receipt issued in accordance with this Act, including an 
     electronic receipt.
       ``(9) Secretary.--The term `Secretary' means the Secretary 
     of Agriculture.
       ``(10) Warehouse.--The term `warehouse' means a structure 
     or other approved storage facility, as determined by the 
     Secretary, in which any agricultural product may be stored or 
     handled for the purposes of interstate or foreign commerce.
       ``(11) Warehouse operator.--The term `warehouse operator' 
     means a person that is lawfully engaged in the business of 
     storing or handling agricultural products.

     ``SEC. 3. POWERS OF SECRETARY.

       ``(a) In General.--The Secretary shall have exclusive 
     power, jurisdiction, and authority, to the extent that this 
     Act applies, with respect to--
       ``(1) each warehouse operator licensed under this Act;
       ``(2) each person that has obtained an approval to engage 
     in an activity under this Act; and
       ``(3) each person claiming an interest in an agricultural 
     product by means of a document or receipt subject to this 
     Act.
       ``(b) Covered Agricultural Products.--The Secretary shall 
     specify, after an opportunity for notice and comment, those 
     agricultural products for which a warehouse license may be 
     issued under this Act.
       ``(c) Investigations.--The Secretary may investigate the 
     storing, warehousing, classifying according to grade and 
     otherwise, weighing, and certifying of agricultural products.
       ``(d) Inspections.--The Secretary may inspect or cause to 
     be inspected any person or warehouse licensed under this Act 
     and any warehouse for which a license is applied for under 
     this Act.
       ``(e) Suitability for Storage.--The Secretary may determine 
     whether a licensed warehouse, or a warehouse for which a 
     license is applied for under this Act, is suitable for the 
     proper storage of the agricultural product or products stored 
     or proposed for storage in the warehouse.
       ``(f) Classification.--The Secretary may classify a 
     licensed warehouse, or a warehouse for which a license is 
     applied for under this Act, in accordance with the ownership, 
     location, surroundings, capacity, conditions, and other 
     qualities of the warehouse and as to the kinds of licenses 
     issued or that may be issued for the warehouse under this 
     Act.
       ``(g) Warehouse Operator's Duties.--Subject to the other 
     provisions of this Act, the Secretary may prescribe the 
     duties of a warehouse operator operating a warehouse licensed 
     under this Act with respect to the warehouse operator's care 
     of and responsibility for agricultural products stored or 
     handled by the warehouse operator.
       ``(h) Systems for Electronic Conveyance.--
       ``(1) Regulations governing electronic systems.--Except as 
     provided in paragraph (2), the Secretary may promulgate 
     regulations governing 1 or more electronic systems under 
     which electronic receipts may be issued and transferred and 
     other electronic documents relating to the shipment, payment, 
     and financing of the sale of agricultural products may be 
     issued or transferred.
       ``(2) Limitations.--The Secretary shall not have the 
     authority under this Act to establish--
       ``(A) 1 or more central filing systems for the filing of 
     financing statements or the filing of the notice of financing 
     statements; or
       ``(B) rules to determine security interests of persons 
     affected by this Act.
       ``(i) Examination and Audits.--In addition to the authority 
     provided under subsection (l), on request of the person, 
     State agency, or commodity exchange, the Secretary may 
     conduct an examination, audit, or similar activity with 
     respect to--
       ``(1) any person that is engaged in the business of storing 
     an agricultural product that is subject to this Act;
       ``(2) any State agency that regulates the storage of an 
     agricultural product by such a person; or
       ``(3) any commodity exchange with regulatory authority over 
     the storage of agricultural products that are subject to this 
     Act.
       ``(j) Licenses for Operation of Warehouses.--The Secretary 
     may issue to any warehouse operator a license for the 
     operation of a warehouse in accordance with this Act if--
       ``(1) the Secretary determines that the warehouse is 
     suitable for the proper storage of the agricultural product 
     or products stored or proposed for storage in the warehouse; 
     and
       ``(2) the warehouse operator agrees, as a condition of the 
     license, to comply with this Act (including regulations 
     promulgated under this Act).
       ``(k) Licensing of Other Persons.--
       ``(1) In general.--On presentation of satisfactory proof of 
     competency to carry out the activities described in this 
     paragraph, the Secretary may issue to any person a Federal 
     license--
       ``(A) to inspect any agricultural product stored or handled 
     in a warehouse subject to this Act;
       ``(B) to sample such an agricultural product;
       ``(C) to classify such an agricultural product according to 
     condition, grade, or other class and certify the condition, 
     grade, or other class of the agricultural product; or
       ``(D) to weigh such an agricultural product and certify the 
     weight of the agricultural product.
       ``(2) Condition.--As a condition of a license issued under 
     paragraph (1), the licensee shall

[[Page H9604]]

     agree to comply with this Act (including regulations 
     promulgated under this Act).
       ``(l) Examination of Books, Records, Papers, and 
     Accounts.--The Secretary may examine and audit, using 
     designated officers, employees, or agents of the Department, 
     all books, records, papers, and accounts relating to 
     activities subject to this Act of--
       ``(1) a warehouse operator operating a warehouse licensed 
     under this Act;
       ``(2) a person operating a system for the electronic 
     recording and transfer of receipts and other documents 
     authorized by the Secretary; or
       ``(3) any other person issuing receipts or electronic 
     documents authorized by the Secretary under this Act.
       ``(m) Cooperation With States.--The Secretary may--
       ``(1) cooperate with officers and employees of a State who 
     administer or enforce State laws relating to warehouses, 
     warehouse operators, weighers, graders, inspectors, samplers, 
     or classifiers; and
       ``(2) enter into cooperative agreements with States to 
     perform activities authorized under this Act.

     ``SEC. 4. IMPOSITION AND COLLECTION OF FEES.

       ``(a) In General.--The Secretary shall assess persons 
     covered by this Act fees to cover the costs of administering 
     this Act.
       ``(b) Rates.--The fees under this section shall be set at a 
     rate determined by the Secretary.
       ``(c) Treatment of Fees.--All fees collected under this 
     section shall be credited to the account that incurs the 
     costs of administering this Act and shall be available to the 
     Secretary without further appropriation and without fiscal 
     year limitation.
       ``(d) Interest.--Funds collected under this section may be 
     deposited in an interest-bearing account with a financial 
     institution, and any interest earned on the account shall be 
     credited under subsection (c).
       ``(e) Efficiencies and Cost Effectiveness.--
       ``(1) In general.--The Secretary shall seek to minimize the 
     fees established under this section by improving efficiencies 
     and reducing costs, including the efficient use of personnel 
     to the extent practicable and consistent with the effective 
     implementation of this Act.
       ``(2) Report.--The Secretary shall publish an annual report 
     on the actions taken by the Secretary to comply with 
     paragraph (1).

     ``SEC. 5. QUALITY AND VALUE STANDARDS.

       ``If standards for the evaluation or determination of the 
     quality or value of an agricultural product are not 
     established under another Federal law, the Secretary may 
     establish standards for the evaluation or determination of 
     the quality or value of the agricultural product under this 
     Act.

     ``SEC. 6. BONDING AND OTHER FINANCIAL ASSURANCE REQUIREMENTS.

       ``(a) In General.--As a condition of receiving a license or 
     approval under this Act (including regulations promulgated 
     under this Act), the person applying for the license or 
     approval shall execute and file with the Secretary a bond, or 
     provide such other financial assurance as the Secretary 
     determines appropriate, to secure the person's performance of 
     the activities so licensed or approved.
       ``(b) Service of Process.--To qualify as a suitable bond or 
     other financial assurance under subsection (a), the surety, 
     sureties, or financial institution shall be subject to 
     service of process in suits on the bond or other financial 
     assurance in the State, district, or territory in which the 
     warehouse is located.
       ``(c) Additional Assurances.--If the Secretary determines 
     that a previously approved bond or other financial assurance 
     is insufficient, the Secretary may suspend or revoke the 
     license or approval covered by the bond or other financial 
     assurance if the person that filed the bond or other 
     financial assurance does not provide such additional bond or 
     other financial assurance as the Secretary determines 
     appropriate.
       ``(d) Third Party Actions.--Any person injured by the 
     breach of any obligation arising under this Act for which a 
     bond or other financial assurance has been obtained as 
     required by this section may sue with respect to the bond or 
     other financial assurance in a district court of the United 
     States to recover the damages that the person sustained as a 
     result of the breach.

     ``SEC. 7. MAINTENANCE OF RECORDS.

       ``To facilitate the administration of this Act, the 
     following persons shall maintain such records and make such 
     reports, as the Secretary may by regulation require:
       ``(1) A warehouse operator that is licensed under this Act.
       ``(2) A person operating a system for the electronic 
     recording and transfer of receipts and other documents that 
     are authorized under this Act.
       ``(3) Any other person engaged in the issuance of 
     electronic receipts or the transfer of documents under this 
     Act.

     ``SEC. 8. FAIR TREATMENT IN STORAGE OF AGRICULTURAL PRODUCTS.

       ``(a) In General.--Subject to the capacity of a warehouse, 
     a warehouse operator shall deal, in a fair and reasonable 
     manner, with persons storing, or seeking to store, an 
     agricultural product in the warehouse if the agricultural 
     product--
       ``(1) is of the kind, type, and quality customarily stored 
     or handled in the area in which the warehouse is located;
       ``(2) is tendered to the warehouse operator in a suitable 
     condition for warehousing; and
       ``(3) is tendered in a manner that is consistent with the 
     ordinary and usual course of business.
       ``(b) Allocation.--Nothing in this section prohibits a 
     warehouse operator from entering into an agreement with a 
     depositor of an agricultural product to allocate available 
     storage space.

     ``SEC. 9. COMMINGLING OF AGRICULTURAL PRODUCTS.

       ``(a) In General.--A warehouse operator may commingle 
     agricultural products in a manner approved by the Secretary.
       ``(b) Liability.--A warehouse operator shall be severally 
     liable to each depositor or holder for the care and 
     redelivery of the share of the depositor and holder of the 
     commingled agricultural product to the same extent and under 
     the same circumstances as if the agricultural products had 
     been stored separately.

     ``SEC. 10. TRANSFER OF STORED AGRICULTURAL PRODUCTS.

       ``(a) In General.--In accordance with regulations 
     promulgated under this Act, a warehouse operator may transfer 
     a stored agricultural product from 1 warehouse to another 
     warehouse for continued storage.
       ``(b) Continued Duty.--The warehouse operator from which 
     agricultural products have been transferred under subsection 
     (a) shall deliver to the rightful owner of such products, on 
     request at the original warehouse, such products in the 
     quantity and of the kind, quality, and grade called for by 
     the receipt or other evidence of storage of the owner.

     ``SEC. 11. WAREHOUSE RECEIPTS.

       ``(a) In General.--At the request of the depositor of an 
     agricultural product stored or handled in a warehouse 
     licensed under this Act, the warehouse operator shall issue a 
     receipt to the depositor as prescribed by the Secretary.
       ``(b) Actual Storage Required.--A receipt may not be issued 
     under this section for an agricultural product unless the 
     agricultural product is actually stored in the warehouse at 
     the time of the issuance of the receipt.
       ``(c) Contents.--Each receipt issued for an agricultural 
     product stored or handled in a warehouse licensed under this 
     Act shall contain such information, for each agricultural 
     product covered by the receipt, as the Secretary may require 
     by regulation.
       ``(d) Prohibition on Additional Receipts or Other 
     Documents.--
       ``(1) Receipts.--While a receipt issued under this Act is 
     outstanding and uncanceled by the warehouse operator, an 
     additional receipt may not be issued for the same 
     agricultural product (or any portion of the same agricultural 
     product) represented by the outstanding receipt, except as 
     authorized by the Secretary.
       ``(2) Other documents.--If a document is transferred under 
     this section, no duplicate document in any form may be 
     transferred by any person with respect to the same 
     agricultural product represented by the document, except as 
     authorized by the Secretary.
       ``(e) Electronic Receipts and Electronic Documents.--Except 
     as provided in section 3(h)(2), notwithstanding any other 
     provision of Federal or State law:
       ``(1) In general.--The Secretary may promulgate regulations 
     that authorize the issuance, recording, and transfer of 
     electronic receipts, and the transfer of other electronic 
     documents, in accordance with this subsection.
       ``(2) Electronic receipt or electronic document systems.--
     Electronic receipts may be issued, recorded, and transferred, 
     and electronic documents may be transferred, under this 
     subsection with respect to an agricultural product under, a 
     system or systems maintained in 1 or more locations and 
     approved by the Secretary in accordance with regulations 
     issued under this Act.
       ``(3) Treatment of holder.--Any person designated as the 
     holder of an electronic receipt or other electronic document 
     issued or transferred under this Act shall, for the purpose 
     of perfecting the security interest of the person under 
     Federal or State law and for all other purposes, be 
     considered to be in possession of the receipt or other 
     electronic document.
       ``(4) Nondiscrimination.--An electronic receipt issued, or 
     other electronic document transferred, in accordance with 
     this Act shall not be denied legal effect, validity, or 
     enforceability on the ground that the information is 
     generated, sent, received, or stored by electronic or similar 
     means.
       ``(5) Security interests.--If more than 1 security interest 
     exists in the agricultural product that is the subject of an 
     electronic receipt or other electronic document under this 
     Act, the priority of the security interest shall be 
     determined by the applicable Federal or State law.
       ``(6) No electronic receipt required.--A person shall not 
     be required to issue in electronic form a receipt or document 
     with respect to an agricultural product.
       ``(7) Option for non-federally licensed warehouse 
     operators.--Notwithstanding any other provision of this Act, 
     a warehouse operator not licensed under this Act may, at the 
     option of the warehouse operator and in accordance with 
     regulations established by the Secretary, issue electronic 
     receipts and transfer other electronic documents in 
     accordance with this Act.
       ``(8) Application to state-licensed warehouse operators.--
     This subsection shall not apply to a warehouse operator that 
     is licensed under State law to store agricultural commodities 
     in a warehouse in the State if the warehouse operator 
     elects--

[[Page H9605]]

       ``(A) not to issue electronic receipts authorized under 
     this subsection; or
       ``(B) to issue electronic receipts authorized under State 
     law.

     ``SEC. 12. CONDITIONS FOR DELIVERY OF AGRICULTURAL PRODUCTS.

       ``(a) Prompt Delivery.--In the absence of a lawful excuse, 
     a warehouse operator shall, without unnecessary delay, 
     deliver the agricultural product stored or handled in the 
     warehouse on a demand made by--
       ``(1) the holder of the receipt for the agricultural 
     product; or
       ``(2) the person that deposited the product, if no receipt 
     has been issued.
       ``(b) Payment To Accompany Demand.--Prior to delivery of 
     the agricultural product, payment of the accrued charges 
     associated with the storage of the agricultural product, 
     including satisfaction of the warehouseman's lien, shall be 
     made if requested by the warehouse operator.
       ``(c) Surrender of Receipt.--When the holder of a receipt 
     requests delivery of an agricultural product covered by the 
     receipt, the holder shall surrender the receipt to the 
     warehouse operator, in the manner prescribed by the 
     Secretary, to obtain the agricultural product.
       ``(d) Cancellation of Receipt.--A warehouse operator shall 
     cancel each receipt returned to the warehouse operator upon 
     the delivery of the agricultural product for which the 
     receipt was issued.

     ``SEC. 13. SUSPENSION OR REVOCATION OF LICENSES.

       ``(a) In General.--After providing notice and an 
     opportunity for a hearing in accordance with this section, 
     the Secretary may suspend or revoke any license issued, or 
     approval for an activity provided, under this Act--
       ``(1) for a material violation of, or failure to comply, 
     with any provision of this Act (including regulations 
     promulgated under this Act); or
       ``(2) on the ground that unreasonable or exorbitant charges 
     have been imposed for services rendered.
       ``(b) Temporary Suspension.--The Secretary may temporarily 
     suspend a license or approval for an activity under this Act 
     prior to an opportunity for a hearing for any violation of, 
     or failure to comply with, any provision of this Act 
     (including regulations promulgated under this Act).
       ``(c) Authority To Conduct Hearings.--The agency within the 
     Department that is responsible for administering regulations 
     promulgated under this Act shall have exclusive authority to 
     conduct any hearing required under this section.
       ``(d) Judicial Review.--
       ``(1) Jurisdiction.--A final administrative determination 
     issued subsequent to a hearing may be reviewable only in a 
     district court of the United States.
       ``(2) Procedure.--The review shall be conducted in 
     accordance with the standards set forth in section 706(2) of 
     title 5, United States Code.

     ``SEC. 14. PUBLIC INFORMATION.

       ``(a) In General.--The Secretary may release to the public 
     the names, addresses, and locations of all persons--
       ``(1) that have been licensed under this Act or that have 
     been approved to engage in an activity under this Act; and
       ``(2) with respect to which a license or approval has been 
     suspended or revoked under section 13, the results of any 
     investigation made or hearing conducted under this Act, 
     including the reasons for the suspension or revocation.
       ``(b) Confidentiality.--Except as otherwise provided by 
     law, an officer, employee, or agent of the Department shall 
     not divulge confidential business information obtained during 
     a warehouse examination or other function performed as part 
     of the duties of the officer, employee, or agent under this 
     Act.

     ``SEC. 15. PENALTIES FOR NONCOMPLIANCE.

       ``If a person fails to comply with any requirement of this 
     Act (including regulations promulgated under this Act), the 
     Secretary may assess, on the record after an opportunity for 
     a hearing, a civil penalty--
       ``(1) of not more than $25,000 per violation, if an 
     agricultural product is not involved in the violation; or
       ``(2) of not more than 100 percent of the value of the 
     agricultural product, if an agricultural product is involved 
     in the violation.

     ``SEC. 16. JURISDICTION AND ARBITRATION.

       ``(a) Federal Jurisdiction.--A district court of the United 
     States shall have exclusive jurisdiction over any action 
     brought under this Act without regard to the amount in 
     controversy or the citizenship of the parties.
       ``(b) Arbitration.--Nothing in this Act prevents the 
     enforceability of an agreement to arbitrate that would 
     otherwise be enforceable under chapter 1 of title 9, United 
     States Code.

     ``SEC. 17. AUTHORIZATION OF APPROPRIATIONS.

       ``There are authorized to be appropriated such sums as are 
     necessary to carry out this Act.''.

     SEC. 202. REGULATIONS.

       (a) Proposed Regulations.--Not later than 90 days after the 
     date of enactment of this Act, the Secretary of Agriculture 
     shall publish in the Federal Register proposed regulations 
     for carrying out the amendment made by section 201.
       (b) Final Regulations.--Not later than 180 days after the 
     date of enactment of this Act, the Secretary shall promulgate 
     final regulations for carrying out the amendment made by 
     section 201.
       (c) Effectiveness of Existing Act.--The United States 
     Warehouse Act (7 U.S.C. 241 et seq.) (as it existed before 
     the amendment made by section 201) shall be effective until 
     the earlier of--
       (1) the date on which final regulations are promulgated 
     under subsection (b); or
       (2) August 1, 2001.

  The SPEAKER pro tempore. Pursuant to the rule, the gentleman from 
Nebraska (Mr. Barrett) and the gentleman from Texas (Mr. Stenholm) each 
will control 20 minutes.
  The Chair recognizes the gentleman from Nebraska (Mr. Barrett).
  Mr. BARRETT of Nebraska. Mr. Speaker, I yield myself such time as I 
may consume.
  Mr. Speaker, I rise this evening in support of the bill, H.R. 4788, 
the Grain Standards and Warehouse Improvement Act of 2000, as amended.
  The Subcommittee on General Farm Commodities, Resource Conservation 
and Credit, which I chair, reported the Grain Standards Act 
reauthorization bill out of subcommittee on July 25 of this year. I 
thank the gentleman from Minnesota (Mr. Minge), the ranking member of 
the subcommittee, who was a cosponsor of the bill, for his 
contributions to this important legislation.
  I also thank the gentleman from Texas (Mr. Combest), chairman of the 
full committee, and certainly the gentleman from Texas (Mr. Stenholm), 
the ranking member of the committee, for their assistance in bringing 
this bill to the floor as well.
  A special thanks to Mr. Jim Baker, who is the administrator of the 
Grain Inspection, Packers and Stockyards Administration, and his staff 
for their cooperation in working out the details of this 
reauthorization.
  On September 30, the authorization for the collection of fees by the 
Grain Inspection, Packers and Stockyards Administration of the USDA 
expired. Since approximately 75 percent of the grain inspection budget 
is obtained through the collection of fees and only 25 percent through 
appropriations, this legislation is critical to assure the continued 
marketing of grain and oilseeds.
  The grain standards provisions ensure confidence to our producers, 
grain elevators, and overseas buyers. The grain inspection and weighing 
procedure is very important to farmers and grain elevators. It is 
critical that the Department of Agriculture continue to thoroughly 
inspect grain for purity or, in the case of official agencies, USDA 
needs to provide vigilant oversight. This program provides official 
inspection so that customers are delivered certainly a quality product.
  The bill also provides for a reasonable compromise on the issue of 
geographic boundaries. It will allow grain inspectors to cross boundary 
lines with approval from the Secretary of Agriculture. But it will also 
keep official agencies in place, within geographical areas.
  H.R. 4788, now under consideration, also includes under Title II the 
important revisions to the U.S. Warehouse Act. The main revision is to 
authorize the use of electronic receipts.
  Mr. Speaker, I urge my colleagues to support this very timely and 
very important piece of legislation.
  Mr. Speaker, I reserve the balance of my time.
  Mr. STENHOLM. Mr. Speaker, I yield myself such time as I may consume.
  Mr. Speaker, I rise tonight in support of H.R. 4788, which 
reauthorizes the U.S. Grain Standards Act and also updates the U.S. 
Warehouse Act.
  Given today's world market, it is important that our farmers and 
commodity merchants have the best technical support possible to help 
them compete in the marketplace. This legislation helps continue that 
tradition by reauthorizing the inspection and weighing activities of 
the Grain Inspection, Packers and Stockyards Administration as well as 
updating the U.S. Warehouse Act and providing for the use of electronic 
documentation under that act.
  Due to the technical nature of many of the provisions included in 
this legislation, I would have much preferred to report this bill from 
the Committee on Agriculture. However, it is imperative that we provide 
the grain inspection service with the authority to collect fees to 
provide official weighing and inspection services for grain bound for 
export since their authority expired on September 30. Unfortunately, we 
simply cannot wait any longer at this

[[Page H9606]]

point and take the time to go through the committee process.
  I urge my colleagues to support this routine update of these two 
statutes and ask for their support of H.R. 4788.
  Mr. Speaker, I reserve the balance of my time.
  Mr. BARRETT of Nebraska. Mr. Speaker, I am pleased to yield 2 minutes 
to the gentleman from Virginia (Mr. Goodlatte), a member of the full 
Committee on Agriculture.
  Mr. GOODLATTE. Mr. Speaker, I thank the gentleman for yielding me 
this time and for his leadership on this issue. I also commend the 
gentleman from Illinois (Mr. LaHood) for his contribution to this 
effort as well.
  Mr. Speaker, I rise today in support of H.R. 4788, the Grain 
Standards and Warehouse Improvement Act of 2000. H.R. 4788 is a 
necessary and important piece of legislation in that it allows the 
Grain Inspection Packers and Stockyards Administration to continue to 
serve the essential purpose of guaranteeing a quality grain supply.
  Through vigorous inspection, GIPSA has assisted in maintaining the 
integrity of the American grain, both at home and abroad. To fund this 
program, GIPSA has creatively relied on the collection of fees to 
recoup its costs for service. By reauthorizing its authority in the 
area of grain quality inspection, H.R. 4788 takes the necessary step to 
ensuring that the Grain Inspection, Packers and Stockyards 
Administration will continue to serve America's agriculture producers.
  Mr. Speaker, I am particularly interested in H.R. 4788 because it 
also makes dramatic improvements to the Warehouse Act by providing the 
U.S. Department of Agriculture with a framework for efficient business 
practices most explicitly demonstrated by its language authorizing and 
standardizing electronic receipt documents.
  Like any business today, farmers are using computers and the Internet 
for a variety of purposes, including financial management systems and 
market information. It is becoming increasingly important to ensure 
that all segments of our economy are technologically efficient. It is 
vital to empower producers and farmers by providing them with a 
technological tools to do business electronically in the information 
age. Electronic warehouse receipts and H.R. 4788 are a step in the 
right direction.
  Mr. Speaker, I urge my colleagues to support this fine legislation.
  Mr. BARRETT of Nebraska. Mr. Speaker, I am pleased to yield 2 minutes 
to the gentleman from Illinois (Mr. LaHood), a very valued member of 
the full Committee on Agriculture.
  Mr. LaHOOD. Mr. Speaker, I wish to thank the gentleman from Nebraska 
(Mr. Barrett) for yielding me this time. I also want to thank the staff 
of the Committee on Agriculture for the work they have done to develop 
this legislation.
  To put it simply, this legislation reauthorizes the Grain Standards 
Act and revises the U.S. Warehouse Act to bring them into line with the 
21st century. Of particular interest to me are the provisions that 
update the U.S. Warehouse Act by allowing for the use of electronic 
receipts and other documents.
  I might add, parenthetically, that earlier this year, with the help 
of the gentleman from Virginia (Mr. Goodlatte), the chairman of the 
subcommittee, we were able to pass an e-file bill that I think will 
bring the U.S. Department of Agriculture into the 21st century. We 
could not have done it without the chairman and the ranking member and 
their support of our e-file bill.
  In this age of electronic commerce, I believe that there is a need 
for a Federal presence in electronic documents. But the U.S. Government 
should focus on establishing rules and regulations under which private 
operators of electronic document systems can compete.
  This legislation envisions the Federal Government acting as an umpire 
over multiple private electronic document systems. This is the type of 
system currently in place for electronic cotton warehouse receipts, and 
it has proven to work in that arena.
  Also, I realize there is a cost associated with administering this 
act, and that is why this legislation provides authority for the 
Department of Agriculture to charge fees to offset this cost.
  I believe that such fees should be as low as possible and that there 
should be a correlation between whatever fees are ultimately charged 
under the Act and the specific services being rendered by the USDA.
  In order to insure the viability of electronic receipts, I believe 
that fees should not be of such amount that they hinder the use of 
electronic warehouse receipts or any other electronic documents. Also, 
I do not believe that charging per transaction fees on electronic 
warehouse receipts is appropriate.
  Having made these points, I believe this is a good bill which will 
improve the efficiency and profitability of American agriculture, and I 
urge all Members to support this very important legislation that, 
again, brings the USDA and agriculture into the 21st century 
electronically.
  Mr. LaHOOD. Mr. Speaker, I wish to thank the gentleman from Texas 
(Mr. Combest) for yielding time. I also want to thank the staff of the 
Agriculture Committee for the work they have done to develop this 
legislation.
  To put it simply, this legislation reauthorizes the Grains Standards 
Act and revises the U.S. Warehouse Act to bring them in-line with the 
21st century. Of particular interest to me are the provisions that 
update the U.S. Warehouse Act by allowing for the use of electronic 
receipts and other documents.
  In this age of e-commerce, I believe that there is a need for a 
federal presence in electronic documents, but that the U.S. government 
should focus on establishing rules and regulations under which private 
operators of electronic document systems can compete. This legislation 
envisions the federal government acting as umpire over multiple private 
electronic document systems. This is the type of system currently in 
place for electronic cotton warehouse receipts, and it has proven to 
work in that arena.
  Also, I realize that there is a cost associated with administering 
this act, and that is why this legislation provides authority for the 
Department of Agriculture to charge fees to offset this cost. I believe 
that such fees should be as low as possible and that there should be a 
correlation between whatever fees are ultimately charged under the Act 
and the specific services being rendered by USDA. In order to insure 
the viability of electronic receipts, I believe that fees should not be 
of such amount that they hinder the use of electronic warehouse 
receipts or other electronic documents. Also, I do not believe that 
charging per transaction fees on electronic warehouse receipts is 
appropriate.
  Having made these points, I believe that this is a good bill, which 
will improve the efficiency and profitability of American agriculture. 
I urge my fellow members to support this legislation.
  Mr. COMBEST. Mr. Speaker, I rise today to suspend the rules and pass 
the bill H.R. 4788, with an amendment, and urge my colleagues to 
support the Grain Standards and Warehouse Improvement Act of 2000. This 
reauthorization will provide the Grain Inspection Packers and 
Stockyards Administration with essential authority to continue the 
inspection of grain utilized in both domestic and international 
markets, and extends the authority of the Secretary of Agriculture to 
collect fees to cover the costs of services performed under the Act 
until the year 2005.
  On September 30, 2000, the authorization for the collection of fees 
by the Grain Inspection Packers and Stockyards Administration expired. 
The latest figures show that approximately 75% of the grain inspection 
budget is funded through the collection of fees and only 25% through 
appropriations. Therefore, it is imperative that Congress act now to 
renew this expired authority.
  H.R. 4788 also makes improvements to the Warehouse Act. This will 
provide the United States Department of Agriculture with a uniform 
regulatory system to govern the operation of federally licensed 
warehouses involved in storing agricultural products.
  Currently, warehouse licenses may be issued for the storage of major 
commodities and cottonseed. According to the USDA, 45.5% of the U.S. 
off-farm grain and rice storage capacity and 49.5% of the total cotton 
storage capacity is licensed under the Warehouse Act.
  The revisions to the Warehouse Act will make this program more 
relevant to today's agricultural marketing system. The legislation 
would do such things as (1) authorize and standardize electronic 
documents and allow their transfer from buyer to seller across state 
and international boundaries; (2) authorize warehouse operators to 
enter into contracts or agreements with depositors to allocate 
available storage space; and (3) protect the integrity of state 
warehouse laws and regulations from federal preemption.
  In 1992, Congress directed the Secretary of Agriculture to establish 
electronic warehouse receipts for the cotton industry. Since then, 
participation in the electronic-based program

[[Page H9607]]

has grown to more than 90% of the U.S. cotton crop. This legislation 
would extend the electronic warehouse receipts program to include all 
agriculture commodities covered by the U.S. Warehouse Act.
  This legislation has been negotiated with the United States 
Department of Agriculture and the relevant industries. It provides for 
a consistent inspection of grains and the ability to utilize electronic 
receipts and documents for all major commodities, which will foster 
more reliable, competitive and efficient commerce within the 
agricultural sector.
  In summary Mr. Speaker, this legislation will bring grain inspection 
and the use of warehouse facilities into the 21st century, all at no 
net cost to the taxpayer. I urge my colleagues to support this timely 
and important piece of legislation.
  Mr. STENHOLM. Mr. Speaker I have no further requests for time. I 
encourage Members to support the bill, and I yield back the balance of 
my time.
  Mr. BARRETT of Nebraska. Mr. Speaker, I have no further requests for 
time, and I yield back the balance of my time.
  The SPEAKER pro tempore. The question is on the motion offered by the 
gentleman from Nebraska (Mr. Barrett) that the House suspend the rules 
and pass the bill, H.R. 4788, as amended.
  The question was taken; and (two-thirds having voted in favor 
thereof) the rules were suspended and the bill, as amended, was passed.
  The title of the bill was amended so as to read:

       ``A bill to amend the United States Grain Standards Act to 
     extend the authority of the Secretary of Agriculture to 
     collect fees to cover the cost of services performed under 
     that Act, extend the authorization of appropriations for that 
     Act, and improve the administration of that Act, to reenact 
     the United States Warehouse Act to require the licensing and 
     inspection of warehouses used to store agricultural products 
     and provide for the issuance of receipts, including 
     electronic receipts, for agricultural products stored or 
     handled in licensed warehouses, and for other purposes.''.
  A motion to reconsider was laid on the table.

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