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To restore an economic safety net for agricultural producers, to increase market transparency in agricultural markets domestically and abroad, and for other purposes.

To restore an economic safety net for agricultural producers, to increase market transparency in agricultural markets domestically and abroad, 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.

This Act may be cited as the `Agricultural Safety Net and Market Competitiveness Act of 1999'.

SEC. 2. FINDINGS AND PURPOSES.

(a) FINDINGS- Congress finds that--

(1) over the past 2 years, family farmers and ranchers have experienced rapid and severe declines in crop and livestock prices;

(2) these prices are being experienced across all agricultural commodities and are projected to remain at current low levels indefinitely;

(3) these prices are a product of economic and weather-related events over which domestic agricultural producers have no control and that they could not have anticipated;

(4) in particular, due to increasing concentration throughout the agricultural industry, market signals that are fundamental to fair and free competition and on which agricultural producers necessarily rely in order to know what and when to produce are being severely obscured and distorted; and

(5) these market conditions are disproportionately affecting smaller operations, which make up the majority of farms and ranches across the United States, and are threatening the economic stability of rural communities in many States.

(b) PURPOSES- The purposes of this Act are--

(1) to restore an economic safety net for agricultural producers so that the producers and the rural communities of which they are a part can endure the conditions described in subsection (a) and remain healthy, strong, and productive;

(2) to increase price transparency in agricultural markets domestically and abroad in order to revitalize competitive forces in the domestic marketplace for agricultural producers; and

(3) to ensure that domestic agricultural producers have a fair opportunity to compete in foreign markets.

SEC. 3. COUNTERCYCLICAL AGRICULTURAL INCOME LOSS PROTECTION.

It is the sense of Congress that strategies should be considered for offsetting extreme levels of income loss by agricultural producers resulting from economic and weather-related events that cannot be controlled or anticipated.

SEC. 4. CROP INSURANCE AVAILABILITY AND AFFORDABILITY.

It is the sense of Congress that the crop insurance program established under the Federal Crop Insurance Act (7 U.S.C. 1501 et seq.) should be modified to--

(1) increase the number of agricultural commodities that are eligible for coverage;

(2) increase access to crop insurance products;

(3) increase the affordability of crop insurance products;

(4) protect against multiyear disasters through existing and new crop insurance products; and

(5) promote new strategies to manage producer risk.

SEC. 5. CROP INSURANCE COVERAGE FOR LIVESTOCK.

(a) IN GENERAL- Section 518 of the Federal Crop Insurance Act (7 U.S.C. 1518) is amended by striking `or any other agricultural commodity, excluding livestock and' and inserting `livestock, or any other agricultural commodity, excluding'.

(b) REVENUE INSURANCE PILOT PROGRAM- Section 508(h)(9)(A) of the Federal Crop Insurance Act (7 U.S.C. 1508(h)(9)(A)) is amended by inserting `livestock,' after `soybeans,'.

SEC. 6. PILOT PROGRAM ON LIVESTOCK MARKET REPORTING.

(a) IN GENERAL- The Agricultural Marketing Act of 1946 is amended by inserting after section 203 (7 U.S.C. 1622) the following:

`SEC. 203A. PILOT PROGRAM ON LIVESTOCK MARKET REPORTING.

`(a) DEFINITIONS- In this section:

`(1) LIVESTOCK- The term `livestock' means cattle, sheep, and hogs, whether live or dead.

`(2) LIVESTOCK PRODUCT- The term `livestock product' means boxed beef, boxed lamb, and any value-added product derived from pork.

`(3) PACKER- The term `packer' has the meaning given the term in section 201 of the Packers and Stockyards Act, 1921 (7 U.S.C. 191).

`(4) SECRETARY- The term `Secretary' means the Secretary of Agriculture.

`(b) MANDATORY REPORTING PILOT PROGRAM-

`(1) IN GENERAL- Subject to paragraph (7), the Secretary shall conduct a 3-year pilot program under which the Secretary shall require each packer to report to the Secretary (or a person designated by the Secretary), in such manner as the Secretary shall require, such information relating to prices, volume, and the terms of sale for the procurement of domestic and imported livestock and livestock products as the Secretary determines is appropriate.

`(2) ADMINISTRATION- In carrying out paragraph (1), the Secretary shall require packers to--

`(A) separately report domestic and imported livestock and livestock products; and

`(B) report the information required to be reported under paragraph (1) the next business day or as soon as practicable after the procurement of the livestock or livestock product.

`(3) NONCOMPLIANCE- It shall be unlawful for any packer to knowingly fail or refuse to provide to the Secretary information required to be reported under paragraph (1).

`(4) VERIFICATION- The Secretary may take such actions as are necessary to verify the accuracy of the information required to be reported under paragraph (1), regardless of the source of the information.

`(5) CEASE AND DESIST AND CIVIL PENALTY-

`(A) IN GENERAL- If the Secretary has reason to believe that a packer is violating paragraph (1) (including regulations promulgated under paragraph (1)), the Secretary, after notice and opportunity for hearing, may issue an order to cease and desist from continuing the violation and assess a civil penalty of not more than $10,000 for each violation.

`(B) FACTORS- In determining the amount of a civil penalty to be assessed under subparagraph (A), the Secretary shall consider the gravity of the offense, the size of the business involved, and the effect of the penalty on the ability of the packer to continue in business.

`(6) REFERRAL TO ATTORNEY GENERAL- If, after expiration of the period for appeal or after the affirmance of a civil penalty assessed under paragraph (5), the packer against whom the civil penalty is assessed fails to pay the civil penalty, the Secretary may refer the matter to the Attorney General, who may recover the amount of the civil penalty in a civil action in United States district court.

`(7) APPLICATION- This subsection shall apply only to the class of the largest packers (by volume) that are engaged in the business of buying, manufacturing, preparing, or marketing at least 80 percent of the volume of each type of livestock and livestock product that is bought, manufactured, prepared, or marketed in the United States, as determined by the Secretary.

`(c) VOLUNTARY REPORTING- The Secretary shall encourage voluntary reporting by packers that are not subjected to a mandatory reporting requirement under subsection (b).

`(d) AVAILABILITY OF INFORMATION- The Secretary shall make information received under this section available to the public only in a form that ensures that--

`(1) the identity of the packer submitting a report is not disclosed; and

`(2) the confidentiality of proprietary business information is otherwise protected.

`(e) EFFECT ON OTHER LAWS- Nothing in this section restricts or modifies the authority of the Secretary to collect voluntary reports in accordance with other provisions of law.'.

(b) CONFORMING AMENDMENT- Section 416 of the Packers and Stockyards Act, 1921 (7 U.S.C. 229a) (as added by section 1127(a) of division A of Public Law 105-277) is repealed.

(c) REGULATIONS-

(1) IN GENERAL- Not later than 180 days after the date of enactment of this Act, the Secretary of Agriculture shall promulgate such regulations as are necessary to implement the amendment made by subsection (a). The promulgation of the regulations shall be made without regard to--

(A) the notice and comment provisions of section 553 of title 5, United States Code;

(B) the Statement of Policy of the Secretary of Agriculture effective July 24, 1971 (36 Fed. Reg. 13804), relating to notices of proposed rulemaking and public participation in rulemaking; and

(C) chapter 35 of title 44, United States Code (commonly known as the `Paperwork Reduction Act').

(2) CONGRESSIONAL REVIEW OF AGENCY RULEMAKING- In carrying out this subsection, the Secretary shall use the authority provided under section 808(2) of title 5, United States Code.

SEC. 7. LABELING OF IMPORTED MEAT AND MEAT FOOD PRODUCTS.

(a) DEFINITIONS- Section 1 of the Federal Meat Inspection Act (21 U.S.C. 601) is amended by adding at the end the following:

`(w) BEEF- The term `beef' means meat produced from cattle (including veal).

`(x) IMPORTED BEEF- The term `imported beef' means beef that is not United States beef, whether or not the beef is graded with a quality grade issued by the Secretary.

`(y) IMPORTED LAMB- The term `imported lamb' means lamb that is not United States lamb, whether or not the lamb is graded with a quality grade issued by the Secretary.

`(z) IMPORTED PORK- The term `imported pork' means pork that is not United States pork.

`(aa) LAMB- The term `lamb' means meat, other than mutton, produced from sheep.

`(bb) PORK- The term `pork' means meat produced from hogs.

`(cc) UNITED STATES BEEF- The term `United States beef' means beef produced from cattle born, fed, and slaughtered in the United States.

`(dd) UNITED STATES LAMB- The term `United States lamb' means lamb produced from sheep born, fed, and slaughtered in the United States.

`(ee) UNITED STATES PORK- The term `United States pork' means pork produced from hogs born, fed, and slaughtered in the United States.'.

(b) MISBRANDING- Section 1(n) of the Federal Meat Inspection Act (21 U.S.C. 601(n)) is amended--

(1) in paragraph (11), by striking `or' at the end;

(2) in paragraph (12), by striking the period at the end and inserting a semicolon; and

(3) by adding at the end the following:

`(13)(A) if it is imported beef, imported lamb, or imported pork offered for retail sale as muscle cuts of beef, lamb, or pork and does not bear a label that identifies its country of origin;

`(B) if it is United States beef, United States lamb, or United States pork offered for retail sale as muscle cuts of beef, lamb, or pork, and does not bear a label that identifies its country of origin; or

`(C) if it is United States or imported ground beef, ground lamb, ground pork, or other processed beef, lamb, or pork product and is not accompanied by labeling that identifies it as United States beef, United States lamb, United States pork, imported beef, imported lamb, imported pork, or other designation that identifies the content of United States beef, imported beef, United States lamb, imported lamb, United States pork, and imported pork contained in the product, as determined by the Secretary; or

`(14) if it is imported beef or imported lamb and bears a label that indicates a quality grade issued by the Secretary.'.

(c) LABELING- Section 7 of the Federal Meat Inspection Act (21 U.S.C. 607) is amended by adding at the end the following:

`(g) MANDATORY LABELING- The Secretary shall provide by regulation that the following offered for retail sale bear a label that identifies its country of origin:

`(1) Muscle cuts of United States beef, United States lamb, United States pork, imported beef, imported lamb, and imported pork.

`(2) Ground beef, ground lamb, ground pork, and other processed beef, lamb, or pork product made from imported beef, imported lamb, or imported pork.

`(h) AUDIT VERIFICATION SYSTEM FOR UNITED STATES AND IMPORTED MUSCLE CUTS OF BEEF, LAMB, AND PORK- The Secretary may require by regulation that any person that prepares, stores, handles, or distributes muscle cuts of United States beef, imported beef, United States lamb, imported lamb, United States pork, or imported pork for retail sale maintain a verifiable recordkeeping audit trail that will permit the Secretary to ensure compliance with the regulations promulgated under subsection (g).'.

(d) REGULATIONS- Not later than 1 year after the date of enactment of this Act, the Secretary of Agriculture shall promulgate final regulations to carry out the amendments made by this section.

(e) EFFECTIVE DATE- The amendments made by this section take effect 60 days after the date on which final regulations are promulgated under subsection (d).

SEC. 8. INTERAGENCY CONCENTRATION TASK FORCE.

(a) IN GENERAL- The President shall establish an interagency task force to investigate--

(1) alleged anticompetitive practices in the meat packing industry; and

(2) the effects on rural communities and the public of increasing concentration in many sectors of--

(A) the agricultural industry, including the meat packing and processing, grain distribution and marketing, and biotechnology industries; and

(B) industries that have a direct impact on agriculture, including retail sales and transportation.

(b) REPORT- Not later than 180 days after the date of enactment of this Act, the task force shall submit a report to Congress that describes the results of the investigation.

SEC. 9. STUDY OF LINK BETWEEN CREDIT AND CONCENTRATION AMONG HANDLERS AND PROCESSORS.

(a) IN GENERAL- The President shall conduct a study to determine whether public and private lending practices have contributed to, or are contributing to, concentration among persons that produce, handle, or process agricultural commodities.

(b) CREDIT ELIGIBILITY REQUIREMENTS- In conducting the study, the President shall analyze the appropriateness of public and private credit eligibility requirements for--

(1) beginning farmers and ranchers; and

(2) farmers and ranchers who use, or intend to use, alternative farm and ranch management systems, in contrast to large scale, capital intensive, or subsidized systems.

(c) REPORT- Not later than 120 days after the date of enactment of this Act, the President shall submit to Congress a report that--

(1) describes the results of the study; and

(2) makes any recommendations that are necessary to improve the availability of credit to meet the diverse needs of farmers and ranchers.

SEC. 10. STUDY OF ENFORCEMENT OF PROHIBITION ON ANTICOMPETITIVE PRACTICES BY PACKERS AND STOCKYARDS.

(a) IN GENERAL- The Comptroller General of the United States shall conduct a study of what kinds of practices or activities described in section 202 of the Packers and Stockyards Act, 1921 (7 U.S.C. 192), would warrant intervention by the Secretary of Agriculture to prevent anticompetitive practices.

(b) REPORT- Not later than 180 days after the date of enactment of this Act, the Comptroller General shall submit a report to Congress that describes the results of the study.

SEC. 11. REPORTING OF CONTRACTS BY PACKERS AND STOCKYARDS.

Section 401 of the Packers and Stockyards Act, 1921 (7 U.S.C. 221), is amended--

(1) by designating the first and second sentences as subsections (a) and (c), respectively;

(2) by striking `SEC. 401. (a) Every' and inserting the following:

`SEC. 401. ACCOUNTS AND RECORDS OF BUSINESS.

`(a) IN GENERAL- Each';

(3) by inserting after subsection (a) (as so designated) the following:

`(b) CONTRACTS-

`(1) IN GENERAL- Each packer, live poultry dealer, stockyard owner, market agency, and dealer shall submit to the Secretary a copy of each contract involving a transaction described in subsection (a).

`(2) PUBLIC AVAILABILITY- The Secretary shall make each contract submitted under paragraph (1) available to the public in a manner that preserves the confidentiality of the parties to the contract.'; and

(4) in subsection (c) (as so designated)--

(A) by striking `(c) Whenever' and inserting the following:

`(c) PENALTY- If'; and

(B) by striking `and memoranda' each place it appears and inserting `memoranda, and contracts'.

SEC. 12. VALUE-ADDED ENTERPRISES AND NEW MARKETS.

It is the sense of Congress that the Secretary of Agriculture should identify and provide opportunities, resources, and economic incentives for agricultural producers to expand participation in value-added processing (including renewable, biobased products), cooperative enterprises, and improved marketing and financial management techniques.

SEC. 13. MARKET ACCESS IDENTIFICATION FOR CERTAIN AGRICULTURAL PRODUCTS (SPECIAL 301).

(a) SHORT TITLE- This section may be cited as the `United States Agricultural Products Market Access Act of 1998'.

(b) PURPOSES- The purposes of this section are--

(1) to reduce or eliminate foreign unfair trade practices and to remove constraints on fair and open trade in agricultural products;

(2) to ensure fair and equitable market access for exports of United States agricultural products; and

(3) to promote free and fair trade in agricultural products.

(c) IDENTIFICATION OF COUNTRIES THAT DENY MARKET ACCESS-

(1) IDENTIFICATION REQUIRED- Chapter 8 of title I of the Trade Act of 1974 is amended by adding at the end the following:

`SEC. 183. IDENTIFICATION OF COUNTRIES THAT DENY MARKET ACCESS FOR AGRICULTURAL PRODUCTS.

`(a) IN GENERAL- Not later than the date that is 30 days after the date on which the annual report is required to be submitted to Congressional committees under section 181(b), the United States Trade Representative (hereafter in this section referred to as the `Trade Representative') shall identify--

`(1) those foreign countries that--

`(A) deny fair and equitable market access to United States agricultural products, or

`(B) apply unjustified sanitary or phytosanitary standards to agricultural products imported from the United States; and

`(2) those foreign countries identified under paragraph (1) that are determined by the Trade Representative to be priority foreign countries.

`(b) SPECIAL RULES FOR IDENTIFICATION-

`(1) CRITERIA- In identifying priority foreign countries under subsection (a)(2), the Trade Representative shall only identify those foreign countries--

`(A) that engage in or have the most onerous or egregious acts, policies, or practices that deny fair and equitable market access to United States agricultural products,

`(B) whose acts, policies, or practices described in subparagraph (A) have the greatest adverse impact (actual or potential) on the relevant United States products, and

`(C) that are not--

`(i) entering into good faith negotiations, or

`(ii) making significant progress in bilateral or multilateral negotiations,

to provide fair and equitable market access to United States agricultural products.

`(2) CONSULTATION AND CONSIDERATION REQUIREMENTS- In identifying priority foreign countries under subsection (a)(2), the Trade Representative shall--

`(A) consult with the Secretary of Agriculture and other appropriate officers of the Federal Government, and

`(B) take into account information from such sources as may be available to the Trade Representative and such information as may be submitted to the Trade Representative by interested persons, including information contained in reports submitted under section 181(b) and petitions submitted under section 302.

`(3) FACTUAL BASIS REQUIREMENT- The Trade Representative may identify a foreign country under subsection (a)(1) only if the Trade Representative finds that there is a factual basis for the denial of fair and equitable market access as a result of the violation of international law or agreement, or the existence of barriers, referred to in subsection (d).

`(4) CONSIDERATION OF HISTORICAL FACTORS- In identifying foreign countries under paragraphs (1) and (2) of subsection (a), the Trade Representative shall take into account--

`(A) the history of agricultural trade relations with the foreign country, including any previous identification under subsection (a)(2), and

`(B) the history of efforts of the United States, and the response of the foreign country, to achieve fair and equitable market access for United States agricultural products.

`(c) REVOCATIONS AND ADDITIONAL IDENTIFICATIONS-

`(1) AUTHORITY TO ACT AT ANY TIME- If information available to the Trade Representative indicates that such action is appropriate, the Trade Representative may at any time--

`(A) revoke the identification of any foreign country as a priority foreign country under this section, or

`(B) identify any foreign country as a priority foreign country under this section.

`(2) REVOCATION REPORTS- The Trade Representative shall include in the semiannual report submitted to the Congress under section 309(3) a detailed explanation of the reasons for the revocation under paragraph (1) of the identification of any foreign country as a priority foreign country under this section.

`(d) DEFINITION AND SPECIAL RULE- For purposes of this section:

`(1) AGRICULTURAL PRODUCTS- The term `agricultural products' includes forest products, fish, and seafood products.

`(2) FAIR AND EQUITABLE MARKET ACCESS- A foreign country denies fair and equitable market access if the foreign country effectively denies access to a market for a product through the use of laws, procedures, practices, or regulations which--

`(A) violate provisions of international law or international agreements to which both the United States and the foreign country are parties, or

`(B) constitute discriminatory nontariff trade barriers.

`(e) PUBLICATION- The Trade Representative shall publish in the Federal Register a list of foreign countries identified under subsection (a) and shall make such revisions to the list as may be required by reason of the action under subsection (c).

`(f) ANNUAL REPORT- The Trade Representative shall, not later than the date by which countries are identified under subsection (a), transmit to the Committee on Ways and Means and the Committee on Agriculture of the House of Representatives and the Committee on Finance and the Committee on Agriculture, Nutrition, and Forestry of the Senate, a report on the actions taken under this section during the 12 months preceding such report, and the reasons for such actions, including a description of progress made in achieving fair and equitable market access for United States agricultural products.'.

(2) CLERICAL AMENDMENT- The table of contents for the Trade Act of 1974 is amended by inserting after the item relating to section 182 the following:

`Sec. 183. Identification of countries that deny market access for agricultural products.'.

(d) INVESTIGATIONS-

(1) INVESTIGATION REQUIRED- Subparagraph (A) of section 302(b)(2) of the Trade Act of 1974 (19 U.S.C. 2412(b)(2)) is amended by inserting `or 183(a)(2)' after `section 182(a)(2)' in the matter preceding clause (i).

(2) CONFORMING AMENDMENTS-

(A) Subparagraph (D) of section 302(b)(2) of such Act is amended by inserting `concerning intellectual property rights that is' after `any investigation'.

(B) Subparagraph (B) of section 304(a)(3) of such Act is amended--

(i) by striking `or' at the end of clause (ii),

(ii) by inserting `or' at the end of clause (iii), and

(iii) by inserting immediately after clause (iii) the following new clause:

`(iv) the foreign country involved in the investigation is making substantial progress in drafting or implementing legislative or administrative measures that will provide fair and equitable market access to United States agricultural products,'.

SEC. 14. MANDATORY NEGOTIATING GOALS FOR THE 1999 WTO TALKS ON AGRICULTURE AND OTHER AGRICULTURE-RELATED NEGOTIATIONS GOALS.

(a) STATEMENT OF PURPOSE- The purpose of this section is to achieve through trade agreements economic growth, increased farm income, and full employment in the United States agriculture sector.

(b) GOALS OF THE UNITED STATES IN AGRICULTURAL TRADE NEGOTIATIONS- The agricultural trade negotiating objectives of the United States with respect to bilateral and multilateral negotiations (including World Trade Organization negotiations) include--

(1) increasing opportunities for United States exports of agricultural products by eliminating tariff and non-tariff barriers to trade, including the elimination of--

(A) restrictive or trade-distorting import and export practices that impact perishable or cyclical products;

(B) unjustified restrictions or commercial requirements affecting new technologies, including biotechnology;

(C) unjustified sanitary or phytosanitary restrictions;

(D) other unjustified technical barriers to trade; and

(E) restrictive rules in the administration of tariff-rate quotas;

(2) leveling the playing field for United States producers of agricultural products by limiting per unit domestic production supports to levels that are no greater than those available in the United States;

(3) ending the practice of export dumping by eliminating all trade distorting export subsidies and disciplining entities that sell agricultural products in foreign markets at prices below domestic market prices or at prices below the full costs of acquiring and delivering the agricultural products to foreign markets; and

(4) encouraging government policies that avoid price-depressing surpluses.

SEC. 15. CONSULTATION WITH CONGRESSIONAL COMMITTEES.

(a) CONSULTATION BEFORE INITIAL NEGOTIATIONS- Before the United States Trade Representative initiates negotiations to reduce United States tariffs on agricultural products, the United States Trade Representative shall consult with the Committee on Agriculture, Nutrition, and Forestry of the Senate and the Committee on Agriculture of the House of Representatives concerning the tariff reductions. The consultations shall include an assessment of--

(1) the impact of any tariff reduction on the United States industry producing the product for which the tariff reduction is proposed; and

(2) whether an adjustment period should be provided to the industry.

(b) CONSULTATION BEFORE AGREEMENT INITIALED- Not less than 48 hours before initialing an agreement relating to agricultural trade, the United States Trade Representative shall consult closely with the Committee on Agriculture, Nutrition, and Forestry of the Senate and the Committee on Agriculture of the House of Representatives regarding--

(1) the details of the agreement;

(2) the potential impact of the agreement on domestic agricultural producers; and

(3) any changes in United States law necessary to implement the agreement.