[Congressional Record (Bound Edition), Volume 150 (2004), Part 15]
[House]
[Pages 20842-20843]
[From the U.S. Government Publishing Office, www.gpo.gov]




 CONFIRMING AUTHORITY OF SECRETARY OF AGRICULTURE AND COMMODITY CREDIT 
   CORPORATION TO ENTER INTO MEMORANDUMS OF UNDERSTANDING REGARDING 
COLLECTION OF APPROVED COMMODITY ASSESSMENTS FROM PROCEEDS OF MARKETING 
                            ASSISTANCE LOANS

  Mr. HAYES. Mr. Speaker, I move to suspend the rules and pass the bill 
(H.R. 4620) to confirm the authority of the Secretary of Agriculture 
and the Commodity Credit Corporation to enter into memorandums of 
understanding with a State regarding the collection of approved State 
commodity assessments on behalf of the State from the proceeds of 
marketing assistance loans, as amended.
  The Clerk read as follows:

                               H.R. 4620

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

     SECTION 1. CONFIRMATION OF AUTHORITY OF SECRETARY OF 
                   AGRICULTURE TO COLLECT STATE COMMODITY 
                   ASSESSMENTS.

       (a) Collection From Marketing Assistance Loans.--The 
     Secretary of Agriculture may collect commodity assessments 
     from the proceeds of a marketing assistance loan for a 
     producer if the assessment is required to be paid by the 
     producer or the first purchaser of a commodity pursuant to a 
     State law or pursuant to an authority administered by the 
     Secretary. This collection authority does not extend to a 
     State tax or other revenue collection activity by a State.
       (b) Collection Pursuant to Agreement.--The collection of an 
     assessment under subsection (a) shall be made as specified in 
     an agreement between the Secretary of Agriculture and the 
     State requesting the collection.

  The SPEAKER pro tempore. Pursuant to the rule, the gentleman from 
North Carolina (Mr. Hayes) and the gentleman from Texas (Mr. Stenholm) 
each will control 20 minutes.
  The Chair recognizes the gentleman from North Carolina (Mr. Hayes).
  Mr. HAYES. Mr. Speaker, I yield myself such time as I may consume.
  Mr. Speaker, I appreciate the gentleman from Washington (Mr. 
Nethercutt) for sponsoring H.R. 4620 and bringing this bill to the 
committee's attention. I also appreciate his

[[Page 20843]]

extensive efforts in working to resolve this problem for producers in 
Washington State as well as producers nationwide.
  For years, the U.S. Department of Agriculture has collected State 
commodity checkoff assessments from marketing loans to fund research 
and promotion. In recent years, however, when producers within a State 
have voted to increase assessments on themselves, USDA has found that 
it lacks the statutory authority to recognize modified memorandums of 
understanding with the State.
  As amended in the Committee on Agriculture, H.R. 4620 provides USDA 
the authority to collect these assessments and allows USDA to recognize 
modified agreements with the States.
  Again, I appreciate the work of the gentleman from Washington on this 
issue, and I urge support of the bill.
  Mr. Speaker, I reserve the balance of my time.
  Mr. STENHOLM. Mr. Speaker, I yield myself such time as I may consume, 
and I rise in support of H.R. 4620.
  H.R. 4620 was introduced by our colleague, the gentleman from 
Washington State (Mr. Nethercutt). I have been contacted by the Texas 
Wheat Growers, the National Association of Wheat Growers, the Wheat 
Export Trade Education Committee and the USA Rice Federation in support 
of addressing an issue that has arisen in regard to the collection of 
assessments for State commodity research and education programs when 
the commodity in question goes under loan with the USDA.
  I want to thank the gentleman from Washington and the Washington 
Wheat Growers for bringing this situation to our attention before it 
impacted more States or more commodities. I am pleased to have worked 
with the chairman, the gentleman from Virginia (Mr. Goodlatte), to 
report out a bill that the Committee on Agriculture fine-tuned in 
conjunction with USDA and the wheat industry.
  As a wheat farmer, I know the benefit our State wheat and other 
commodity promotion groups do on our behalf with checkoff funds, and I 
support this continued effort; and therefore, I am pleased to support 
this legislation.
  Mr. Speaker, I have no further requests for time, and I yield back 
the balance of my time.
  Mr. HAYES. Mr. Speaker, I yield myself such time as I may require to 
conclude by thanking my colleague, the gentleman from Texas (Mr. 
Stenholm) for his assistance today.
  Mr. HASTINGS of Washington. Mr. Speaker, I support this legislation 
to clarify the authority of state commissions to collect commodity 
assessments on the proceeds of marketing assistance loans.
  Agriculture is the prime driver of the economy in my Central 
Washington congressional district. Many growers in my district make use 
of marketing loans that allow them to use their crop as collateral.
  Many growers also participate in check-off programs for collecting an 
assessment on a certain crop. These assessments are normally collected 
at the first point of sale. The USDA and the Commodity Credit 
Corporation have supported state commissions in the collection of 
grower-funded commodity assessments when, because of low commodity 
prices, the commodity is forfeited to the government. The state 
assessments have been collected under a Memorandum of Understanding 
between the USDA and state commodity commissions.
  Recently, wheat growers in Washington and California voted to 
increase their support of commodity activities through an assessment 
increase. USDA has claimed that it lacks the statutory authority to 
honor a Memorandum of Understanding if the assessment rate is changed. 
This decision has the potential to cause serious impact to state 
commissions and disadvantage to growers that depend on their work. The 
use of funds is very important during times of low prices and 
oversupply, when the need for expanding markets increases.
  This legislation introduced by my friend and colleague from 
Washington, Mr. Nethercutt and myself will authorize the USDA to 
continue to collect state commodity assessments in the event of 
forfeiture of a commodity to the federal government.
  I urge my colleagues to support this legislation.
  Mr. Speaker, I yield back the balance of my time.
  The SPEAKER pro tempore. The question is on the motion offered by the 
gentleman from North Carolina (Mr. Hayes) that the House suspend the 
rules and pass the bill, H.R. 4620, 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 confirm 
the authority of the Secretary of Agriculture to collect approved State 
commodity assessments on behalf of the State from the proceeds of 
marketing assistance loans.''
  A motion to reconsider was laid on the table.

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