[Congressional Record Volume 164, Number 106 (Monday, June 25, 2018)]
[Senate]
[Pages S4372-S4373]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

  SA 3074. Mr. LEE (for himself, Mr. Booker, and Ms. Hassan) submitted 
an amendment intended to be proposed by him to the bill H.R. 2, to 
provide for the reform and continuation of agricultural and other 
programs of the Department of Agriculture through fiscal year 2023, and 
for other purposes; which was ordered to lie on the table; as follows:

       At the appropriate place, add the following:

     SEC. ___. OPPORTUNITIES FOR FAIRNESS IN FARMING.

       (a) Short Title.--This section may be cited as the 
     ``Opportunities for Fairness in Farming Act of 2018''.
       (b) Findings.--Congress finds that--
       (1) the generic programs to promote and provide research 
     and information for an agricultural commodity (commonly known 
     as ``checkoff programs'') are intended to increase demand for 
     all of that agricultural commodity and benefit all assessed 
     producers of that agricultural commodity;
       (2) although the laws establishing checkoff programs 
     broadly prohibit the use of funds in any manner for the 
     purpose of influencing legislation or government action, 
     checkoff programs have repeatedly been shown to use funds to 
     influence policy directly or by partnering with organizations 
     that lobby;
       (3) the unlawful use of checkoff programs funds benefits 
     some agricultural producers while harming many others;
       (4) to more effectively prevent Boards from using funds for 
     unlawful purposes, strict separation of engagement between 
     the Boards and policy entities is necessary;
       (5) conflicts of interest in the checkoff programs allow 
     special interests to use checkoff program funds for the 
     benefit of some assessed agricultural producers at the 
     expense of many others;
       (6) prohibiting conflicts of interest in checkoff programs 
     is necessary to ensure the proper and lawful operation of the 
     checkoff programs;
       (7) checkoff programs are designed to promote agricultural 
     commodities, not to damage other types of agricultural 
     commodities through anticompetitive conduct or otherwise;
       (8) prohibiting anticompetitive and similar conduct is 
     necessary to ensure proper and lawful operation of checkoff 
     programs;
       (9) lack of transparency in checkoff programs enables 
     abuses to occur and conceals abuses from being discovered; 
     and
       (10) requiring transparency in the expenditure of checkoff 
     program funds is necessary to prevent and uncover abuses in 
     checkoff programs.
       (c) Definitions.--In this section:
       (1) Board.--The term ``Board'' means a board, committee, or 
     similar entity established to carry out a checkoff program or 
     an order issued by the Secretary under a checkoff program.
       (2) Checkoff program.--The term ``checkoff program'' means 
     a program to promote and provide research and information for 
     a particular agricultural commodity without reference to 
     specific producers or brands, including a program carried out 
     under any of the following:
       (A) The Cotton Research and Promotion Act (7 U.S.C. 2101 et 
     seq.).
       (B) The Potato Research and Promotion Act (7 U.S.C. 2611 et 
     seq.).
       (C) The Egg Research and Consumer Information Act (7 U.S.C. 
     2701 et seq.).
       (D) The Beef Research and Information Act (7 U.S.C. 2901 et 
     seq.).
       (E) The Wheat and Wheat Foods Research and Nutrition 
     Education Act (7 U.S.C. 3401 et seq.).
       (F) The Floral Research and Consumer Information Act (7 
     U.S.C. 4301 et seq.).
       (G) Subtitle B of the Dairy Production Stabilization Act of 
     1983 (7 U.S.C. 4501 et seq.).
       (H) The Honey Research, Promotion, and Consumer Information 
     Act (7 U.S.C. 4601 et seq.).
       (I) The Pork Promotion, Research, and Consumer Information 
     Act of 1985 (7 U.S.C. 4801 et seq.).
       (J) The Watermelon Research and Promotion Act (7 U.S.C. 
     4901 et seq.).
       (K) The Pecan Promotion and Research Act of 1990 (7 U.S.C. 
     6001 et seq.).
       (L) The Mushroom Promotion, Research, and Consumer 
     Information Act of 1990 (7 U.S.C. 6101 et seq.).
       (M) The Lime Research, Promotion, and Consumer Information 
     Act of 1990 (7 U.S.C. 6201 et seq.).
       (N) The Soybean Promotion, Research, and Consumer 
     Information Act (7 U.S.C. 6301 et seq.).
       (O) The Fluid Milk Promotion Act of 1990 (7 U.S.C. 6401 et 
     seq.).
       (P) The Fresh Cut Flowers and Fresh Cut Greens Promotion 
     and Information Act of 1993 (7 U.S.C. 6801 et seq.).
       (Q) The Sheep Promotion, Research, and Information Act of 
     1994 (7 U.S.C. 7101 et seq.).
       (R) Section 501 of the Federal Agriculture Improvement and 
     Reform Act of 1996 (7 U.S.C. 7401).
       (S) The Commodity Promotion, Research, and Information Act 
     of 1996 (7 U.S.C. 7411 et seq.).
       (T) The Canola and Rapeseed Research, Promotion, and 
     Consumer Information Act (7 U.S.C. 7441 et seq.).
       (U) The National Kiwifruit Research, Promotion, and 
     Consumer Information Act (7 U.S.C. 7461 et seq.).
       (V) The Popcorn Promotion, Research, and Consumer 
     Information Act (7 U.S.C. 7481 et seq.).
       (W) The Hass Avocado Promotion, Research, and Information 
     Act of 2000 (7 U.S.C. 7801 et seq.).
       (3) Conflict of interest.--The term ``conflict of 
     interest'' means a direct or indirect financial interest in a 
     person or entity that performs a service for, or enters into 
     a contract or agreement with, a Board for anything of 
     economic value.
       (4) Secretary.--The term ``Secretary'' means the Secretary 
     of Agriculture.
       (d) Requirements of Checkoff Programs.--
       (1) Prohibitions.--
       (A) Influencing government policy or action.--
       (i) In general.--A Board shall not enter into any contract 
     or agreement to carry out checkoff program activities with a 
     party that engages in activities for the purpose of 
     influencing any government policy or action that relates to 
     agriculture.
       (ii) Savings clause.--Nothing in clause (i) prohibits a 
     contract or agreement entered into between a Board and an 
     institution of higher education for the purpose of research, 
     extension, or education.
       (B) Conflict of interest.--A Board shall not engage in, and 
     shall prohibit the employees and agents of the Board, acting 
     in their official capacity, from engaging in, any act that 
     may involve a conflict of interest.
       (C) Other prohibitions.--A Board shall not engage in, and 
     shall prohibit the employees and agents of the Board, acting 
     in their official capacity, from engaging in--
       (i) any anticompetitive activity;
       (ii) any unfair or deceptive act or practice; or
       (iii) any act that may be disparaging to, or in any way 
     negatively portray, another agricultural commodity or 
     product.
       (2) Authority to enter into contracts.--Notwithstanding any 
     other provision of law, on approval of the Secretary, a Board 
     may enter directly into contracts and agreements to carry out 
     generic promotion, research, or other activities authorized 
     by law.
       (3) Production of records.--
       (A) In general.--Each contract or agreement of a checkoff 
     program shall provide that the entity that enters into the 
     contract or agreement shall produce to the Board accurate 
     records that account for all funds received under the 
     contract or agreement, including any goods or services 
     provided or costs incurred in connection with the contract or 
     agreement.
       (B) Maintenance of records.--A Board shall maintain any 
     records received under subparagraph (A).
       (4) Publication of budgets and disbursements.--
       (A) In general.--The Board shall publish and make available 
     for public inspection all budgets and disbursements of funds 
     entrusted to the Board that are approved by the Secretary, 
     immediately on approval by the Secretary.
       (B) Required disclosures.--In carrying out subparagraph 
     (A), the Board shall disclose--
       (i) the amount of the disbursement;
       (ii) the purpose of the disbursement, including the 
     activities to be funded by the disbursement;
       (iii) the identity of the recipient of the disbursement; 
     and
       (iv) the identity of any other parties that may receive the 
     disbursed funds, including any contracts or subcontractors of 
     the recipient of the disbursement.
       (5) Audits.--
       (A) Periodic audits by inspector general of usda.--
       (i) In general.--Not later than 2 years after the date of 
     enactment of this Act, and not less frequently than every 5 
     years thereafter, the Inspector General of the Department of 
     Agriculture shall conduct an audit to determine the 
     compliance of each checkoff program with this section during 
     the period of time covered by the audit.
       (ii) Review of records.--An audit conducted under clause 
     (i) shall include a review of any records produced to the 
     Board under paragraph (3)(A).
       (iii) Submission of reports.--On completion of each audit 
     under clause (i), the Inspector General of the Department of 
     Agriculture shall--

       (I) prepare a report describing the audit; and

[[Page S4373]]

       (II) submit the report described in subclause (I) to--

       (aa) the appropriate committees of Congress, including the 
     Subcommittee on Antitrust, Competition Policy and Consumer 
     Rights of the Committee on the Judiciary of the Senate; and
       (bb) the Comptroller General of the United States.
       (B) Audit by comptroller general.--
       (i) In general.--Not earlier than 3 years, and not later 
     than 5 years, after the date of enactment of this Act, the 
     Comptroller General of the United States shall--

       (I) conduct an audit to assess--

       (aa) the status of actions taken for each checkoff program 
     to ensure compliance with this section; and
       (bb) the extent to which actions described in item (aa) 
     have improved the integrity of a checkoff program; and

       (II) prepare a report describing the audit conducted under 
     subclause (I), including any recommendations for--

       (aa) strengthening the effect of actions described in 
     subclause (I)(aa); and
       (bb) improving Federal legislation relating to checkoff 
     programs.
       (ii) Consideration of inspector general reports.--The 
     Comptroller General of the United States shall consider 
     reports described in subparagraph (A)(iii) in preparing any 
     recommendations in the report under clause (i)(II).
       (e) Severability.--If any provision of this section or the 
     application of such provision to any person or circumstance 
     is held to be unconstitutional, the remainder of this 
     section, and the application of the provision to any other 
     person or circumstance, shall not be affected.
                                 ______