H. Rpt. 119-233 accompanies authorization legislation for the United States Grain Standards. Authorization bills establish or extend the legal basis and policy framework for federal programs — they set the rules for how programs operate but do not themselves provide funding. The Agriculture Committee prepared this report to document the program's purpose, explain any changes being made, describe the committee's findings from hearings and investigations, and outline the expected outcomes. Authorization reports frequently include CBO cost estimates and views from both majority and minority committee members.
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House Report 119-233 - UNITED STATES GRAIN STANDARDS REAUTHORIZATION ACT OF 2025
[House Report 119-233]
[From the U.S. Government Publishing Office]
119th Congress } { Report
HOUSE OF REPRESENTATIVES
1st Session } { 119-233
======================================================================
UNITED STATES GRAIN STANDARDS REAUTHORIZATION ACT OF 2025
_______
September 3, 2025.--Committed to the Committee of the Whole House on
the State of the Union and ordered to be printed
_______
Mr. Thompson of Pennsylvania, from the Committee on Agriculture,
submitted the following
R E P O R T
[To accompany H.R. 4550]
The Committee on Agriculture, to whom was referred the bill
(H.R. 4550) to reauthorize the United States Grain Standards
Act, and for other purposes, having considered the same,
reports favorably thereon without amendment and recommends that
the bill do pass.
Brief Explanation
The United States Grain Standards Act Reauthorization Act
of 2025, H.R. 4550, reauthorizes provisions of the United
States Grain Standards Act (USGSA) until September 30, 2030,
and provides a safeguard mechanism in the event of an
interruption of official inspection services. In addition, H.R.
4550 revises the process for the delegation and designation of
authority by the Secretary to provide official inspection
services and allows for the review of current delegations.
Finally, the legislation amends the USGSA to provide a basis
for fees based on export tonnage and for the adjustment of
those fees.
Purpose and Needs
Witnesses testifying before the subcommittee, as well as
producer organizations submitting statements for the hearing
record, affirmed that it remains the Federal Grain Inspection
Service's (FGIS) ultimate responsibility to provide accurate,
reliable, consistently available, and cost-effective grain
inspection and weighing services. Though proposals varied, each
organization underscored the importance of technology and
continuity of service in ensuring the integrity of the United
States grain inspection system. The Committee therefore updated
the Act's declaration of policy, adopted an additional
reporting requirement focusing on technology, added technology
development to a list of activities exempted from an
administrative and supervisory spending cap, and gave the
Secretary the authority to cooperate with official agencies for
researching methods to improve accuracy and uniformity in
grading grain. To address continuity of service concerns The
Act allows for the use of official agencies for domestic
movements at Export Port Locations as needed. Finally, to
reaffirm Committee intent, the Act clarifies that services
performed under the Agricultural Marketing Act of 1946 are
intended to be excluded from the $55 million annual cap on FGIS
obligations funded through user fees, as established in
appropriations acts. This ensures that the appropriations limit
applies only to inspection and weighing services conducted
under the USGSA.
Extension of Operations
Under the USGSA of 1916, the Federal Government is
authorized to establish official marketing standards for grains
and oilseeds, and to provide procedures for grain inspection
and weighing. Most of the Act is permanently authorized,
including mandatory inspection and weighing of exported grain,
as well as authority to amend grain standards of quality.
However, several provisions expire on September 30, 2025. A
lapse in authorization could disrupt the current grain
inspection and weighing program.
The provisions expiring on September 30, 2025, are:
Authority for appropriations (7 U.S.C. 87h)
FGIS authority for charging fees required
for Federal supervision of State agencies' export
inspections and weighing (7 U.S.C. 79(j)(5) and 7
U.S.C.79a(i)(4))
Administrative/supervisory cost cap of 30%
(7 U.S.C. 79d)
Authority for an advisory committee (7
U.S.C. 87j(e))
Safeguard Against Interruption of Official Inspection Services
Section 5(a)(1) of the USGSA (7 U.S.C. 77(a)(1)) authorizes
the Secretary to waive official inspection and weighing
services if an ``emergency'' exists, the waiver will not impair
the objectives of the Act, and both the buyer and seller agree
to forego official inspection. When a waiver is granted, the
Secretary must submit a report describing the disruption to the
House Committee on Agriculture and the Senate Committee on
Agriculture, Nutrition, and Forestry. While the term
``emergency'' is not defined in statute, it is addressed in
regulation; however, the Act does not specify the duration for
which a waiver may remain in effect.
The Committee expects USDA to use its existing statutory
and regulatory authority to develop and implement a contingency
plan to restore official grain inspection and weighing services
in the event of future interruptions or disruptions. This plan
should provide clearer operational guidance for applying the
regulatory definition of ``emergency'' and ensure timely waiver
decisions. The Committee further expects FGIS to carefully
consider stakeholder recommendations, including those from
export elevators and Officially Designated and Delegated
Agencies, in formulating and executing the plan.
Section-by-Section Analysis of Legislation
Section 1. Short title
Section 1 provides that this Act may be cited as the
``United States Grain Standards Reauthorization Act of 2025''.
Section 2. Declaration of policy
Section 2 amends section 2(b) of the United States Grain
Standards Act to update the declaration of policy of Congress
to include the view that the Secretary of Agriculture shall
prioritize the adoption of improved grain grading technology to
provide for efficient, accurate, and consistent grading of
grain.
Section 3. Official inspection authority and funding
Section 3 amends section 7 of the United States Grain
Standards Act to establish continuity planning to allow the use
of official agencies for domestic movements at Export Port
Locations as needed. Section 3 also changes the user fee
deposit fund into a trust fund. The Department of Treasury's
classification of Federal Grain Inspection Service (FGIS) user
fee accounts has created ambiguity in implementing fund
investments and reclassifying the fund as a trust fund will end
any ambiguity. Finally, section 3 reauthorizes the inspection
duties imposed on designated official agencies and State
agencies and the trust fund investment authority through
September 30, 2030.
Section 4. Weighing authority
Section 4 amends section 7A of the United States Grain
Standards Act to conform with the continuity planning
established under section 3 and updates the reference to the
user fee fund created under section 7A(l) as a trust fund.
Additionally, section 4 reauthorizes FGIS' fee collection
authority through September 30, 2030.
Section 5. Testing of equipment
Section 5 amends section 7B(a) of the United States Grain
Standards Act to update the reference to the user fee fund
created under section 7A(l) as a trust fund.
Section 6. Limitation on administrative and supervisory costs
Section 6 amends section 7D(a) of the United States Grain
Standards Act to exclude costs associated with equipment and
the development of technology from the existing 30 percent cap
placed upon administrative and supervisory costs which may be
incurred under the United States Grain Standards Act for
services performed. Additionally, section 6 extends
authorization for the cap, as amended, through 2030.
Section 7. General authorities
Section 7 amends section 16 of the United States Grain
Standards Act to allow the Secretary to cooperate with official
agencies in conducting a continuing research program for the
purpose of developing methods to improve accuracy and
uniformity in grading grain. Section 7 also updates the
reference to the user fee fund created under section 7A(l) as a
trust fund.
Section 8. Registration requirements
Section 8 amends section 17A(e) of the United States Grain
Standards Act to update the reference to the user fee fund
created under section 7A(l) as a trust fund.
Section 9. Reporting requirements
Section 9 amends existing discretionary reporting
requirements in section 17B(e) of the United States Grain
Standards Act (data relating to testing for other intrinsic
quality or food safety factors and other data collected from
inspection and weighing) to (1) make such reporting
requirements mandatory, (2) require that report publication
occur on December 1 of each year, and (3) add additional
reporting requirements for the publication of an analysis of
any and all existing deficiencies in the technology evaluation
process and recommendations to advance the efficiency,
accuracy, and consistency of grain grading and minimize costs
imposed on the federal government and the grain export
industry.
Section 10. Funding
Section 10 amends section 19 of the United States Grain
Standards Act to reauthorize the $23,000,000 annual
authorization of appropriations for standardization and
compliance activities, monitoring in foreign ports grain
officially inspected and weighed under this chapter, and any
other expenses necessary to carry out the provisions of the
United States Grain Standards Act for an additional five years
through fiscal year 2030. Section 10 also clarifies that the
term ``official inspection or weighing service,'' which means
official inspection, official weighing, supervision of
weighing, supervision of agency personnel, supervision of the
field office personnel of the Secretary, testing of equipment
or instruments, and other services, excludes grading services
performed under the Agricultural Marketing Act of 1946.
Section 11. Advisory committee
Section 11 amends section 21 of the United States Grain
Standards Act to reauthorize the authority of the advisory
committee for U.S. grain standards through September 30, 2030,
and provides that if the Secretary does not appoint a new
advisory member upon the completion of a term of an existing
member (including such existing member's second successive
term), then the existing member shall continue to serve until a
new member is appointed by the Secretary.
Committee Consideration
I. HEARINGS
On June 26, 2025, the Subcommittee on General Farm
Commodities, Risk Management, and Credit held a public hearing
to review reauthorization of the United States Grains Standards
Act.
Members of the Subcommittee heard testimony and discussed
reauthorization of the United States Grains Standards Act.
First enacted in 1916, the Act has been the cornerstone of the
grain trade both for domestically and internationally. This law
is relied upon not only by exporters and domestic shippers, but
the whole United States agricultural sector. It established
official marketing standards and procedures for the inspection
and weighing of grains and oilseeds, providing a critical
service to the grain marketplace. During the hearing, the
following witnesses testified on matters included in H.R. 4550:
Mr. Nick Friant, Chair, National Grain and
Feed Association, Minneapolis, Minnesota
Mrs. Kia Mikesh, President, American
Association of Grain Inspection and Weighing Agencies,
Walcott, North Dakota
Mr. Dave Walton, Secretary, American Soybean
Association, Wilton, Iowa
Dr. Kevin Donnelly, Professor Emeritus,
Department of Grain Science and Industry, Kansas State
University, Manhattan, Kansas
II. FULL COMMITTEE
The Committee on Agriculture met, pursuant to notice, with
a quorum present, on July 22, 2025, to consider H.R. 4550,
United States Grains Standards Act Reauthorization Act of 2025.
H.R. 4550 was placed before the Committee for
consideration. Without objection, a first reading of the bill
was waived and it was open for amendment at any point.
Chairman Glenn `GT' Thompson and Ranking Member Angie Craig
were recognized for statements. There being no amendments,
Ranking Member Craig was recognized to offer a motion that the
bill H.R. 4550 be reported favorably to the House with the
recommendation that it do pass. The motion was subsequently
approved by voice vote.
At the conclusion of the meeting, Chairman Thompson advised
Members that pursuant to the rules of the House of
Representatives Members had until July 25, 2025, to file any
supplemental, minority, additional, or dissenting views with
the Committee.
Without objection, staff was given permission to make any
necessary clerical, technical or conforming changes to reflect
the intent of the Committee. Chairman Thompson thanked all the
Members and adjourned the meeting.
Committee Votes
In compliance with clause 3(b) of rule XIII of the House of
Representatives, H.R. 4550 was reported favorably by voice vote
with a majority quorum present. There was no request for a
recorded vote.
Committee Oversight Findings
Pursuant to clause 3(c)(1) of rule XIII of the Rules of the
House of Representatives, the Committee on Agriculture's
oversight findings and recommendations are reflected in the
body of this report.
New Budget Authority, Entitlement Authority, and Tax Expenditures
In compliance with clause 3(c)(2) of rule XIII of the Rules
of the House of Representatives, the Committee states that the
bill involves no new or increased budget authority.
Committee Estimate of Budgetary Effects
There was no estimate and comparison from the Director of
the Congressional Budget Office under clause 3(c)(3) of rule
XIII of the Rules of the House of Representatives and sections
402 and 423 of the Congressional Budget Act of 1974 at the time
of the filing of this report.
Earmark Statement
H.R. 4550 does not contain any congressional earmarks,
limited tax benefits, or limited tariff benefits as defined in
clause 9(e), 9(f), or 9(g) of rule XXI of the Rules of the
House Representatives.
Performance Goals and Objectives
With respect to the requirement of clause 3(c)(4) of rule
XIII of the Rules of the House of Representatives, the
performance goals and objectives of this legislation are to
amend the United States Grain Standards Act to improve
inspection services performed at export elevators at export
port locations, to reauthorize certain authorities of the
Secretary of Agriculture under such Act, and for other
purposes.
Advisory Committee Statement
No advisory committee within the meaning of section 5(b) of
the Federal Advisory Committee Act was created by this
legislation.
Applicability to the Legislative Branch
The Committee finds that the legislation does not relate to
the terms and conditions of employment or access to public
services or accommodations within the meaning of section
102(b)(3) of the Congressional Accountability Act (Public Law
104-1).
Federal Mandates Statement
The Committee adopted as its own the estimate of Federal
mandates prepared by the Director of the Congressional Budget
Office pursuant to section 423 of the Unfunded Mandates Reform
Act (Public Law 104-4).
Duplication of Federal Programs
This bill does not establish or reauthorize a program of
the Federal Government known to be duplicative of another
Federal program, a program that was included in any report from
the Government Accountability Office to Congress pursuant to
section 21 of Public Law 111-139, or a program related to a
program identified in the most recent Catalog of Federal
Domestic Assistance.
Changes in Existing Law Made by the Bill, as Reported
In compliance with clause 3(e) of rule XIII of the Rules of
the House of Representatives, changes in existing law made by
the bill, as reported, are shown as follows (existing law
proposed to be omitted is enclosed in black brackets, new
matter is printed in italics, and existing law in which no
change is proposed is shown in roman):
UNITED STATES GRAIN STANDARDS ACT
* * * * * * *
declaration of policy
Sec. 2. (a) Grain is an essential source of the world's total
supply of human food and animal feed and is merchandised in
interstate and foreign commerce. It is declared to be the
policy of the Congress, for the promotion and protection of
such commerce in the interests of producers, merchandisers,
warehousemen, processors, and consumers of grain, and the
general welfare of the people of the United States, to provide
for the establishment of official United States standards for
grain, to promote the uniform application thereof by official
inspection personnel, to provide for an official inspection
system for grain, and to regulate the weighing and the
certification of the weight of grain shipped in interstate or
foreign commerce in the manner hereinafter provided; with the
objectives that grain may be marketed in an orderly and timely
manner and that trading in grain may be facilitated. It is
hereby found that all grain and other articles and transactions
in grain regulated under this Act are either in interstate or
foreign commerce or substantially affect such commerce and that
regulation thereof as provided in this Act is necessary to
prevent or eliminate burdens on such commerce and to regulate
effectively such commerce.
(b) It is also declared to be the policy of Congress--
(1) to promote the marketing of grain of high quality
to both domestic and foreign buyers;
(2) that the primary objective of the official United
States standards for grain is to certify the quality of
grain as accurately as practicable; [and]
(3) that official United States standards for grain
shall--
(A) define uniform and accepted descriptive
terms to facilitate trade in grain;
(B) provide information to aid in determining
grain storability;
(C) offer users of such standards the best
possible information from which to determine
end-product yield and quality of grain;
(D) provide the framework necessary for
markets to establish grain quality improvement
incentives;
(E) reflect the economic value-based
characteristics in the end uses of grain; and
(F) accommodate scientific advances in
testing and new knowledge concerning factors
related to, or highly correlated with, the end
use performance of grain[.]; and
(4) that the Secretary shall prioritize the adoption
of improved grain grading technology to provide for
efficient, accurate, and consistent grading of grain.
* * * * * * *
official inspection authority and funding
Sec. 7. (a) The Secretary is authorized to cause official
inspection under the standards provided for in section 4 of
this Act to be made of all grain required to be officially
inspected as provided in section 5 of this Act, in accordance
with such regulations as the Secretary may prescribe.
(b) The Secretary is further authorized, upon request of any
interested person, and under such regulations as the Secretary
may prescribe, to cause official inspection to be made with
respect to any grain whether by official sample, submitted
sample, or otherwise within the United States under standards
provided for in section 4 of this Act, or, upon request of the
interested person, under other criteria approved by the
Secretary for determining the kind, class, quality, or
condition of grain, or other facts relating to grain, whenever
in the judgment of the Secretary providing such service will
effectuate any of the objectives stated in section 2 of this
Act.
(c) The regulations prescribed by the Secretary under this
Act shall include provisions for reinspections and appeal
inspections; cancellation and surrender of certificates
superseded by reinspections and appeal inspections; and the use
of standards forms for official certificates. The Secretary may
provide by regulation that samples obtained by or for employees
of the Secretary for purposes of official inspection shall
become the property of the United States, and such samples may
be disposed of without regard to the provisions of the Federal
Property and Administrative Services Act of 1949, as amended
(40 U.S.C. 471 et seq.).
(d) Official certificates setting out the results of official
inspection issued and not canceled under this Act shall be
received by all officers and all courts of the United States as
prima facie evidence of the truth of the facts stated therein.
(e)(1) Except as otherwise provided in paragraph (2) of this
subsection, the Secretary shall cause official inspection at
export port locations, for all grain required or authorized to
be inspected by this Act, to be performed by official
inspection personnel employed by the Secretary or other persons
under contract with the Secretary as provided in section 8 of
this Act.
(2) Delegation of authority to state agencies.--
(A) In general.--If the Secretary determines,
pursuant to paragraph (3) of this subsection,
that a State agency is qualified to perform
official inspection, meets the criteria in
subsection (f)(1)(A) of this section, and (i)
was performing official inspection at an export
port location under this Act on July 1, 1976,
or (ii)(I) performed official inspection at an
export port location at any time prior to July
1, 1976, (II) was designated under subsection
(f) of this section on the date of enactment of
the Agriculture and Food Act of 1981 to perform
official inspections at locations other than
export port locations, and (III) operates in a
State from which total annual exports of grain
do not exceed, as determined by the Secretary,
5 per centum of the total amount of grain
exported from the United States annually, the
Secretary may delegate authority to the State
agency to perform all or specified functions
involved in official inspection (other than
appeal inspection) at export port locations
within the State, including export port
locations which may in the future be
established, subject to such rules,
regulations, instructions, and oversight as the
Secretary may prescribe, and any such official
inspection shall continue to be the direct
responsibility of the Secretary. Any such
delegation may be revoked by the Secretary, at
the discretion of the Secretary, at any time
upon notice to the State agency without
opportunity for a hearing.
(B) Certification.--
(i) In general.--Every 5 years, the
Secretary shall certify that each State
agency with a delegation of authority
is meeting the criteria described in
subsection (f)(1)(A).
(ii) Process.--Not later than 1 year
after the date of enactment of the
Agriculture Reauthorizations Act of
2015, the Secretary shall establish a
process for certification under which
the Secretary shall--
(I) publish in the Federal
Register notice of intent to
certify a State agency and
provide a 30-day period for
public comment;
(II) evaluate the public
comments received and, in
accordance with paragraph (3),
conduct an investigation to
determine whether the State
agency is qualified;
(III) make findings based on
the public comments received
and investigation conducted;
and
(IV) publish in the Federal
Register a notice announcing
whether the certification has
been granted and describing the
basis on which the Secretary
made the decision.
(C) State agency requirements.--
(i) In general.--If a State agency
that has been delegated authority under
this paragraph intends to temporarily
discontinue official inspection or
weighing services for any reason,
except in the case of a major disaster,
the State agency shall notify the
Secretary and affected customers or
applicants for service of official
inspection or weighing services
provided by the State agency in writing
of the intention of the State agency to
do so at least 72 hours in advance of
the discontinuation date.
(ii) Secretarial consideration.--The
Secretary shall consider receipt of a
notice described in clause (i) as a
factor in administering the delegation
of authority under this paragraph.
(3) Prior to delegating authority to a State agency for the
performance of official inspection at export port locations
pursuant to paragraph (2) of this subsection, the Secretary
shall (A) conduct an investigation to determine whether such
agency is qualified, and (B) make findings based on such
investigation. In conducting the investigation, the Secretary
shall consult with, and review the available files of the
Department of Justice, the Office of Investigation of the
Department of Agriculture (or such other organization or agency
within the Department of Agriculture which may be delegated the
authority, in lieu thereof, to conduct investigations on behalf
of the Department of Agriculture), and the General Accounting
Office.
(4) The Secretary may provide that grain loaded at an
interior point in the United States into a rail car, barge, or
other container as the final carrier in which it is to be
transported from the United States shall be inspected in the
manner provided in this subsection or subsection (f) of this
section, as the Secretary determines will best meet the
objectives of this Act.
(5) The Secretary may provide that domestic non-export grain
loaded or unloaded into or out of a rail car, barge, truck, or
other container, at an export port location, shall be inspected
in the manner provided in this subsection or subsection (f), as
the Secretary determines will best meet the objectives of this
Act.
(f)(1) With respect to official inspections other than at
export port locations, the Secretary is authorized, upon
application by any State or local governmental agency, or any
person, to designate such agency or person as an official
agency for the conduct of all or specified functions involved
in official inspection (other than appeal inspection) at
locations where the Secretary determines official inspection is
needed, if--
(A) the agency or person shows to the satisfaction of
the Secretary that such agency or person--
(i) has adequate facilities and qualified
personnel for the performance of such official
inspection functions;
(ii) will provide for the periodic rotation
of official inspection personnel among the
grain elevators, warehouses, or other storage
or handling facilities at which the State or
person provides official inspection, as is
necessary to preserve the integrity of the
official inspection service;
(iii) will meet training requirements and
personnel standards established by the
Secretary under section 8(g) of this Act;
(iv) will otherwise conduct such training and
provide such supervision of its personnel as
are necessary to assure that they will provide
official inspection in accordance with this Act
and the regulations and instructions
thereunder;
(v) will not charge official inspection fees
that are discriminatory or unreasonable;
(vi) if a State or local governmental agency,
will not use any moneys collected pursuant to
the charging of fees for any purpose other than
the maintenance of the official inspection
operation of the State or local governmental
agency;
(vii) and any related entities do not have a
conflict of interest prohibited by section 11
of this Act;
(viii) will maintain complete and accurate
records of its organization, staffing, official
activities, and fiscal operations, and such
other records as the Secretary may require by
regulation;
(ix) if a State or local governmental agency,
will employ personnel on the basis of job
qualifications rather than political
affiliations;
(x) will comply with all provisions of this
Act and the regulations and instructions
thereunder; and
(xi) meets other criteria established in
regulations issued under this Act relating to
official functions under this Act;
(B) the Secretary determines that the applicant is
better able than any other applicant to provide
official inspection service; and
(C) the Secretary--
(i) periodically conducts a consultation with
the customers of the applicant, in a manner
that provides opportunity for protection of the
identity of the customer if desired by the
customer, to review the performance of the
applicant with regard to the provision of
official inspection services and other
requirements of this Act; and
(ii) works with the applicant to address any
concerns identified during the consultation
process.
(2) Geographic boundaries for official agencies.--
(A) In general.--Subject to subparagraph (B),
not more than one 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.
(B) Exceptions.--Subject to subsection
(g)(4)(A), if the Secretary determines that the
presence of more than one designated official
agency in the same geographic area will not
undermine the policy stated in section 2, the
Secretary shall allow a designated official
agency to cross boundary lines to carry out
inspections in another geographic area if--
(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;
(iii) a person requesting inspection
services in that geographic area
requests a probe inspection on a barge-
lot basis; or
(iv) the current official agency for
that geographic area agrees in writing
with the adjacent official agency to
waive the current geographic area
restriction at the request of the
applicant for service.
(C) Termination of nonuse of service
exception.--The exception under subparagraph
(B)(ii) may only be terminated if all parties
to that exception jointly agree on the
termination, unless terminated according to
subsection (g)(4)(A).
(D) Restoration of certain exceptions.--
(i) Definition of eligible grain
handling facility.--In this
subparagraph, the term ``eligible grain
handling facility'' means a grain
handling facility that--
(I) was granted an exception
under the final rule entitled
``Exceptions to Geographic
Areas for Official Agencies
Under the USGSA'' (68 Fed. Reg.
19137 (April 18, 2003)); and
(II) had that exception
revoked between September 30,
2015, and the date of enactment
of the Agriculture Improvement
Act of 2018.
(ii) Restoration of exceptions.--
Within 90 days of notification from an
eligible grain handling facility, the
Secretary shall restore an exception
described in clause (i)(I) with an
official agency if--
(I) the eligible grain
handling facility and the
former excepted official agency
agree to restore that
exception; and
(II) the eligible grain
handling facility notifies the
Secretary of the preferred date
for restoration of the
exception within 90 days of
enactment of the Agriculture
Improvement Act of 2018.
(3) Except as authorized by the Secretary, no official agency
or State delegated authority pursuant to subsection (e)(2) of
this section shall officially inspect under this Act any
official or other sample drawn from a lot of grain and
submitted for inspection unless such lot of grain is physically
located within the geographic area assigned to the agency by
the Secretary at the time such sample is drawn.
(4) No State or local governmental agency or person shall
provide any official inspection for the purposes of this Act
except pursuant to an unsuspended and unrevoked delegation of
authority or designation by the Secretary, as provided in this
section, or as provided in section 8(a) of this Act.
(g)(1) Designations of official agencies shall terminate at
such time as specified by the Secretary but not later than
every 5 years and may be renewed in accordance with the
criteria and procedure prescribed in subsection (f) of this
section.
(2) A designation of an official agency may be amended at any
time upon application by the official agency if the Secretary
determines that the amendment will be consistent with the
provisions and objectives of this Act; and a designation will
be cancelled upon request by the official agency with ninety
days written notice to the Secretary. A fee as prescribed by
regulations of the Secretary shall be paid by the official
agency to the Secretary for each such amendment, to cover the
costs incurred by the Secretary in connection therewith, and it
shall be deposited in the [fund created] trust fund created in
subsection (j) of this section.
(3) The Secretary may revoke a designation of an official
agency whenever, after opportunity for hearing is afforded the
agency, the Secretary determines that the agency has failed to
meet one or more of the criteria specified in subsection (f) of
this section or the regulations under this Act for the
performance of official functions, or otherwise has not
complied with any provision of this Act or any regulation
prescribed or instruction issued to such agency under this Act,
or has been convicted of any violation of other Federal law
involving the handling or official inspection of grain:
Provided, That the Secretary may, without first affording the
official agency an opportunity for a hearing, suspend any
designation pending final determination of the proceeding
whenever the Secretary has reason to believe there is cause for
revocation of the designation and considers such action to be
in the best interest of the official inspection system under
this Act. The Secretary shall afford any such agency an
opportunity for a hearing within thirty days after temporarily
suspending such designation.
(4) Effect on exceptions.--
(A) In general.--The exceptions under clauses
(ii) and (iv) of subsection (f)(2)(B) shall not
apply if the designation of an official agency
is terminated, pursuant to paragraph (1).
(B) Designation renewed or restored.--If the
designation of an official agency is renewed or
restored after being terminated under paragraph
(1), the Secretary may renew or restore the
exceptions under subsection (f)(2)(B) in
accordance with that subsection.
(h) If the Secretary determines that official inspection by
an official agency designated under subsection (f) of this
section is not available on a regular basis at any location
(other than at an export port location) where the Secretary
determines such inspection is needed to effectuate the
objectives stated in section 2 of this Act, and that no
official agency within reasonable proximity to such location is
willing to provide or has or can acquire adequate personnel and
facilities for providing such service on an interim basis,
official inspection shall be provided by authorized employees
of the Secretary, and other persons licensed by the Secretary
to perform official inspection functions, as provided in
section 8 of this Act, until such time as the service can be
provided on a regular basis by an official agency.
(i) The Secretary is authorized to cause official inspection
under this Act to be made, as provided in subsection (a) of
section 5 of this Act, in Canadian ports of United States
export grain transshipped through Canadian ports, and pursuant
thereto the Secretary is authorized to enter into an agreement
with the Canadian Government for such inspection. All or
specified functions of such inspection shall be performed by
official inspection personnel employed by the Secretary or,
except for appeals, by persons operating under a contract with
the Secretary or as otherwise provided by agreement with the
Canadian Government.
(j) Fees.--
(1) Inspection fees.--
(A) In general.--The Secretary shall, under
such regulations as the Secretary may
prescribe, charge and collect reasonable
inspection fees to cover the estimated cost to
the Secretary incident to the performance of
official inspection except when the official
inspection is performed by a designated
official agency or by a State under a
delegation of authority.
(B) Amount of fees.--The fees authorized by
this subsection shall, as nearly as practicable
and after taking into consideration any
proceeds from the sale of samples, cover the
costs of the Secretary incident to its
performance of official inspection services in
the United States and on United States grain in
Canadian ports, including administrative and
supervisory costs related to such official
inspection of grain.
(C) Use of fees.--Fees described in this
paragraph, and the proceeds from the sale of
samples obtained for purposes of official
inspection which become the property of the
United States, shall be deposited into a [fund
which] trust fund which shall be available
without fiscal year limitation for the expenses
of the Secretary incident to providing services
under this Act.
(D) Export tonnage fees.--For an official
inspection at an export facility performed by
the Secretary, the portion of the fees based on
export tonnage shall be based on the rolling 5-
year average of export tonnage volumes.
(2) Each designated official agency and each State agency to
which authority has been delegated under subsection (e) of this
section shall pay to the Secretary fees in such amount as the
Secretary determines fair and reasonable and as will cover the
estimated costs incurred by the Secretary relating to
supervision of official agency personnel and supervision by the
Secretary of the Secretary's field office personnel, except
costs incurred under paragraph (3) of subsection (g) of this
section and sections 9, 10, and 14 of this Act. The fees shall
be payable after the services are performed at such times as
specified by the Secretary and shall be deposited in the fund
created in paragraph (1) of this subsection. Failure to pay the
fee within thirty days after it is due shall result in
automatic termination of the delegation or designation, which
shall be reinstated upon payment, within such period as
specified by the Secretary, of the fee currently due plus
interest and any further expenses incurred by the Secretary
because of such termination. The interest rate on overdue fees
shall be as prescribed by the Secretary, but not less than the
current average market yield on outstanding marketable
obligations of the United States of comparable maturity, plus
an additional charge of not to exceed 1 per centum per annum as
determined by the Secretary and adjusted to the nearest one-
eighth of 1 per centum.
(3) Any sums collected or received by the Secretary under
this Act and deposited to the [fund created] trust fund created
in paragraph (1) of this subsection and any late payment
penalties collected by the Secretary and credited to such fund
may be invested by the Secretary in insured or fully
collateralized, interest-bearing accounts or, at the discretion
of the Secretary, by the Secretary of the Treasury in United
States Government debt instruments. The interest earned on such
sums and any late payment penalties collected by the Secretary
shall be [credited to the fund] credited to the trust fund
account and shall be available without fiscal year limitation
for the expenses of the Secretary incident to providing
services under this Act.
(4) Adjustment of fees.--In order to maintain an
operating reserve of not less than 3 and not more than
6 months, the Secretary shall adjust the fees described
in paragraphs (1) and (2) not less frequently than
annually.
(5) The duties imposed by paragraph (2) on designated
official agencies and State agencies described in such
paragraph and the investment authority provided by paragraph
(3) shall expire on September 30, [2025] 2030. After that date,
the fees established by the Secretary pursuant to paragraph (1)
shall not cover administrative and supervisory costs related to
the official inspection of grain.
weighing authority
Sec. 7A. (a) The Secretary shall cause official weighing
under standards or procedures provided for in section 4 of this
Act to be made of all grain required to be officially weighed
as provided in section 5 of this Act, in accordance with such
regulations as the Secretary may prescribe.
(b) The Secretary is authorized to cause official weighing or
supervision of weighing under standards or procedures provided
in section 4 of this Act to be performed at any grain elevator,
warehouse, or other storage or handling facility located other
than at export elevators at export port locations at which
official inspection is provided pursuant to the provisions of
this Act, in such manner as the Secretary deems appropriate and
under such regulations as the Secretary may provide.
(c)(1) With respect to official weighing or supervision of
weighing for locations at which official inspection is provided
by the Secretary, the Secretary shall cause such official
weighing or supervision of weighing to be performed by official
inspection personnel employed by the Secretary.
(2) With respect to official weighing or supervision of
weighing for any location at which official inspection is
provided other than by the Secretary, the Secretary is
authorized, with respect to export port locations, to delegate
authority to perform official weighing or supervision of
weighing to the [State agency] State agency or official agency
providing official inspection service at such location, and
with respect to any other location, to designate the agency or
person providing official inspection service at such location
to perform official weighing or supervision of weighing, if
such agency or person qualifies for a delegation of authority
or designation under section 7 of this Act, except that where
the term ``official inspection'' is used in such section it
shall be deemed to refer to ``official weighing'' or
``supervision of weighing'' under this section. If such agency
or person is not available to perform such weighing services,
or the Secretary determines that such agency or person is not
qualified to perform such weighing services, then (A) at export
port locations official weighing or supervision of weighing
shall be performed by official inspection personnel employed by
the Secretary, and (B) at any other location, the Secretary is
authorized to cause official weighing or supervision of
weighing to be performed by official inspection personnel
employed by the Secretary or designate any State or local
governmental agency, or any person to perform official weighing
or supervision of weighing, if such agency, or person meets the
same criteria that agencies must meet to be designated to
perform official inspection as set out in section 7 of this
Act, except that where the term ``official inspection'' is used
in such section it shall be deemed to refer to ``official
weighing'' or ``supervision of weighing'' under this section.
Delegations and designations made pursuant to this subsection
shall be subject to the same provisions for delegations and
designations set forth in subsections (e) and (g) of section 7
of this Act.
(d) The Secretary is authorized to cause official weighing
under this Act to be made, as provided in subsection (a) of
section 5 of this Act, in Canadian ports of United States
export grain transshipped through Canada; and pursuant thereto
the Secretary is authorized to enter into an agreement with the
Canadian Government for such official weighing. All or
specified functions of such weighing shall be performed by
official inspection personnel employed by the Secretary or,
except for appeals, by persons operating under a contract with
the Secretary or as otherwise provided by agreement with the
Canadian Government.
(e) The Secretary is further authorized to cause official
weighing or supervision of weighing under standards or
procedures provided for in section 4 of this Act to be made at
grain elevators, warehouses, or other storage or handling
facilities not subject to subsection (a) or (b) of this
section, upon request of the operator of such grain elevator,
warehouse, or other storage or handling facility and in
accordance with such regulations as the Secretary may
prescribe.
(f) No official weighing or supervision of weighing shall be
provided for the purposes of this act at any grain elevator,
warehouse, or other storage or handling facility until such
time as the operator of the facility has demonstrated to the
satisfaction of the Secretary that the operator (1) has and
will maintain, in good order, suitable grain-handling equipment
and accurate scales for all weighing of grain at the facility,
in accordance with the regulations of the Secretary; (2) will
permit only competent persons with a reputation for honesty and
integrity and who are approved by the Secretary to operate the
scales and to handle grain in connection with weighing of the
grain, in accordance with this Act; (3) when weighing is to be
done by persons other than official inspection personnel, will
require such persons to operate the scales in accordance with
the regulations of the Secretary and to require that each lot
of grain for delivery from any railroad car, truck, barge,
vessel, or other means of conveyance at the facility is
entirely removed from such means of conveyance and delivered to
the scales without avoidable waste or loss, and each lot of
grain weighed at the elevator for shipment from the facility is
entirely delivered to the means of conveyance for which
intended, and without avoidable waste or loss, in accordance
with the regulations of the Secretary; (4) will provide all
assistance needed by the Secretary for making any inspection or
examination and carrying out other functions at the facility
pursuant to this Act; and (5) will comply with all other
requirements of this Act and the regulations hereunder.
(g) Official certificates setting out the results of official
weighing or supervision of weighing, issued and not cancelled
under this Act, shall be received by all officers and all
courts of the United States as prima facie evidence of the
truth of the facts stated herein.
(h) No State or local governmental agency or person shall
weigh or state in any document the weight of grain determined
at a location where official weighing is required to be
performed as provided for in this section except in accordance
with the procedures prescribed pursuant to this section.
(i) Unauthorized Weighing Prohibited.--
(1) In general.--No State or local governmental
agency or person other than an authorized employee of
the Secretary shall perform official weighing or
supervision of weighing for the purposes of this Act
except in accordance with the provisions of an
unsuspended and unrevoked delegation of authority or
designation by the Secretary as provided in this
section or as otherwise provided in section 7(i) and
subsection (d).
(2) Geographic boundaries for official agencies.--
(A) In general.--Subject to subparagraph (B),
not more than one 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.
(B) Exceptions.--If the Secretary determines
that the presence of more than one designated
official agency in the same geographic area
will not undermine the policy stated in section
2, the Secretary shall allow a designated
official agency to cross boundary lines to
carry out weighing in another geographic area
if--
(i) the current designated official
agency for that geographic area is
unable to provide weighing services in
a timely manner;
(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; or
(iii) the current official agency for
that geographic area agrees in writing
with the adjacent official agency to
waive the current geographic area
restriction at the request of the
applicant for service.
(C) Restoration of certain exceptions.--
(i) Definition of eligible grain
handling facility.--In this
subparagraph, the term ``eligible grain
handling facility'' means a grain
handling facility that--
(I) was granted an exception
under the final rule entitled
``Exceptions to Geographic
Areas for Official Agencies
Under the USGSA'' (68 Fed. Reg.
19137 (April 18, 2003)); and
(II) had that exception
revoked between September 30,
2015 and the date of enactment
of the Agriculture Improvement
Act of 2018.
(ii) Restoration of exceptions.--
Within 90 days of notification from an
eligible grain handling facility, the
Secretary shall restore an exception
described in clause (i)(I) with an
official agency if--
(I) the eligible grain
handling facility and the
former excepted official agency
agree to restore that
exception; and
(II) the eligible grain
handling facility notifies the
Secretary of the preferred date
for restoration of the
exception within 90 days of
enactment of the Agriculture
Improvement Act of 2018.
(j) The provisions of this section shall not limit any
authority vested in the Secretary under the United States
Warehouse Act (39 Stat. 486, as amended; 7 U.S.C. 241 et seq.).
(k) The representatives of the Secretary shall be afforded
access to any elevator, warehouse, or other storage or handling
facility from which grain is delivered for shipment in
interstate or foreign commerce or to which grain is delivered
from shipment in interstate or foreign commerce and all
facilities therein for weighing grain.
(l) Fees.--
(1) Weighing fees.--
(A) In general.--The Secretary shall, under
such regulations as the Secretary may
prescribe, charge and collect reasonable fees
to cover the estimated costs to the Secretary
incident to the performance of the functions
provided for under this section except as
otherwise provided in paragraph (2) of this
subsection.
(B) Amount of fees.--The fees authorized by
this paragraph shall, as nearly as practicable,
cover the costs of the Secretary incident to
performance of its functions related to
weighing, including administrative and
supervisory costs directly related thereto.
(C) Use of fees.--Fees described in this
paragraph shall be deposited into the [fund
created] trust fund created in section 7(j) of
this Act.
(D) Export tonnage fees.--For an official
weighing at an export facility performed by the
Secretary, the portion of the fees based on
export tonnage shall be based on the rolling 5-
year average of export tonnage volumes.
(2) Each agency to which authority has been delegated under
this section and each agency or other person which has been
designated to perform functions related to weighing under this
section shall pay to the Secretary fees in such amount as the
Secretary determines fair and reasonable and as will cover the
costs incurred by the Secretary relating to supervision of the
agency personnel and supervision by the Secretary of the
Secretary's field office personnel incurred as a result of the
functions performed by such agencies, except costs incurred
under sections 7(g)(3), 9, 10, and 14 of this Act. The fees
shall be payable after the services are performed at such times
as specified by the Secretary and shall be deposited in the
[fund created] trust fund created in section 7(j) of this Act.
Failure to pay the fee within thirty days after it is due shall
result in automatic termination of the delegation or
designation, which shall be reinstated upon payment, within
such period as specified by the Secretary, of the fee currently
due plus interest and any further expenses incurred by the
Secretary because of such termination. The interest rate on
overdue fees shall be as prescribed by the Secretary, but not
less than the current average market yield on outstanding
marketable obligations of the United States of comparable
maturity, plus an additional charge of not to exceed 1 per
centum per annum as determined by the Secretary, and adjusted
to the nearest one-eighth of 1 per centum.
(3) Adjustment of fees.--In order to maintain an
operating reserve of not less than 3 and not more than
6 months, the Secretary shall adjust the fees described
in paragraphs (1) and (2) not less frequently than
annually.
(4) The authority provided to the Secretary by paragraph (1)
and the duties imposed by paragraph (2) on agencies and other
persons described in such paragraph shall expire on September
30, [2025] 2030. After that date, the Secretary shall, under
such regulations as the Secretary may prescribe, charge and
collect reasonable fees to cover the estimated costs of
official weighing and supervision of weighing except when the
official weighing or supervision of weighing is performed by a
designated official agency or by a State under a delegation of
authority. The fees authorized by this paragraph shall, as
nearly as practicable, cover the costs of the Secretary
incident to its performance of official weighing and
supervision of weighing services in the United States and on
United States grain in Canadian ports, excluding administrative
and supervisory costs. The fees authorized by this paragraph
shall be deposited into a fund which shall be available without
fiscal year limitation for the expenses of the Secretary
incident to providing services under this Act.
testing of equipment
Sec. 7B. (a) The Secretary shall provide for the testing of
all equipment used in the sampling, grading, inspection, and
weighing for the purpose of official inspection, official
weighing, or supervision of weighing of grain located at all
grain elevators, warehouses, or other storage or handling
facilities at which officials inspection or weighing services
are provided under this Act, to be made on a random and
periodic basis, under such regulations as the Secretary may
prescribe, as the Secretary deems necessary to assure the
accuracy and integrity of such equipment. Such regulations
shall provide for the charging and collection of reasonable
fees to cover the estimated costs to the Secretary incident to
the performance of such testing by employees of the Secretary.
Such fees shall be deposited into the [fund created] trust fund
created by section 7(j) of this Act.
(b) The Secretary is authorized to cause such testing
provided for in subsection (a) to be performed (1) by personnel
employed by the Secretary, or (2) by States, political
subdivisions thereof, or persons under the supervision of the
Secretary, under such regulations as the Secretary may
prescribe.
(c) Notwithstanding any other provision of law, no person
shall use for the purposes of this Act any such equipment not
approved by the Secretary.
Limitation on administrative and supervisory costs
Sec. 7D. The total administrative and supervisory costs which
may be incurred under this Act for services performed
(excluding standardization, compliance, and foreign monitoring
[activities)] activities, equipment, and development of
technology) for each of the fiscal years 1989 through [2025]
2030 shall not exceed 30 per centum of the total costs for such
activities carried out by the Secretary for such year.
* * * * * * *
general authorities
Sec. 16. (a) The Secretary is authorized to conduct such
investigations; hold such hearings; require such reports from
any official agency, any State agency delegated authority under
this Act, license, or other person; and prescribe such rules,
regulations, and instructions, as the Secretary deems necessary
to effectuate the purposes or provisions of this Act. Such
regulations may require, as a condition for official inspection
or official weighing or supervision of weighing, among other
things, (1) that there be installed specified sampling,
handling, weighing, and monitoring equipment in grain
elevators, warehouses, and other grain storage or handling
facilities, (2) that approval of the Secretary be obtained as
to the condition of vessels and other carriers or receptacles
for the transporting or storing of grain, and (3) that persons
having a financial interest in the grain which is to be
inspected (or their agents) shall be afforded an opportunity to
observe the weighing, loading, and official inspection thereof,
under conditions prescribed by the Secretary. Whether any
certificate, other form, representation, designation, or other
description is false, incorrect, or misleading within the
meaning of this Act shall be determined by tests made in
accordance with such procedures as the Secretary may adopt to
effectuate the objectives of this Act, if the relevant facts
are determinable by such tests. Proceedings under section 9 of
this Act for refusal to renew, or for suspension or revocation
of, a license shall not, unless requested by the respondent, be
subject to the administrative procedure provisions in sections
554, 556, and 557 of title 5 of the United States Code.
(b) The Secretary is authorized to investigate reports or
complaints of discrepancies and abuses in the official
inspection and weighing of grain under this Act. The Secretary
shall prescribe by regulation procedures for (1) promptly
investigating (A) complaints of foreign grain purchasers
regarding the official inspection or official weighing of grain
shipped from the United States, (B) the cancellation of
contracts for the export sale of grain required to be inspected
or weighed under this Act, and (C) any complaint regarding the
operation or administration of this Act or any official
transaction with which this Act is concerned; and (2) taking
appropriate action on the basis of the findings of any
investigation of such complaints.
(c) The Secretary is authorized to cause official inspection
personnel to monitor in foreign nations which are substantial
importers of grain from the United States, grain imported from
the United States upon its entry into the foreign nation, to
determine whether such grain is of a comparable kind, class,
quality, and condition after considering the handling methods
and conveyance utilized at the time of loading, and the same
quantity that it was certified to be upon official inspection
and official weighing in the United States.
(d) The Office of Investigation of the Department of
Agriculture (or such other organization or agency within the
Department of Agriculture which may be delegated the authority,
in lieu thereof, to conduct investigations on behalf of the
Department of Agriculture) shall conduct such investigations
regarding the operation or administration of this Act or any
official transaction with which this Act is concerned, as the
Director thereof deems necessary to assure the integrity of
official inspection and weighing under this Act.
(e) The Secretary is authorized to conduct, in cooperation
with other agencies within the [Department of Agriculture]
Department of Agriculture and official agencies, a continuing
research program for the purpose of developing methods to
improve accuracy and uniformity in grading grain.
(f) To assure the normal movement of grain at all inspection
points in a timely manner consistent with the policy expressed
in section 2 of this Act, the Secretary shall, notwithstanding
any other provision of law, provide adequate personnel to meet
the inspection and weighing requirements of this Act.
(g) Testing of Certain Weighing Equipment.--(1) Subject to
paragraph (2), the Secretary may provide for the testing of
weighing equipment used for purposes other than weighing grain.
The testing shall be performed--
(A) in accordance with such regulations as the
Secretary may prescribe; and
(B) for a reasonable fee established by regulation or
contractual agreement and sufficient to cover, as
nearly as practicable, the estimated costs of the
testing performed.
(2) Testing performed under paragraph (1) may not conflict
with or impede the objectives specified in section 2.
(h) Testing of Grain Inspection Instruments.--(1) Subject to
paragraph (2), the Secretary may provide for the testing of
grain inspection instruments used for commercial inspection.
The testing shall be performed--
(A) in accordance with such regulations as the
Secretary may prescribe; and
(B) for a reasonable fee established by regulation or
contractual agreement and sufficient to cover, as
nearly as practicable, the estimated costs of the
testing performed.
(2) Testing performed under paragraph (1) may not conflict
with or impede the objectives specified in section 2.
(i) Additional For Fee Services.--(1) In accordance with such
regulations as the Secretary may provide, the Secretary may
perform such other services as the Secretary considers to be
appropriate.
(2) In addition to the fees authorized by sections 7, 7A, 7B,
17A, and this section, the Secretary shall collect reasonable
fees to cover the estimated costs of services performed under
paragraph (1) other than standardization and foreign monitoring
activities.
(3) To the extent practicable, the fees collected under
paragraph (2), together with any proceeds from the sale of any
samples, shall cover the costs, including administrative and
supervisory costs, of services performed under paragraph (1).
(j) Deposit of Fees.--Fees collected under subsections (g),
(h), and (i) shall be deposited into the [fund created] trust
fund created under section 7(j).
(k) Official Courtesies.--The Secretary may extend
appropriate courtesies to official representatives of foreign
countries in order to establish and maintain relationships to
carry out the policy stated in section 2. No gift offered or
accepted pursuant to this subsection shall exceed $20 in value.
* * * * * * *
registration requirements
Sec. 17A. (a) The Secretary shall provide, by regulation, for
the registration of all persons engaged in the business of
buying grain for sale in foreign commerce, and in the business
of handling, weighing, or transporting of grain for sale in
foreign commerce. This section shall not apply to--
(1) any person who only incidentally or occasionally
buys for sale, or handles, weighs, or transports grain
for sale and is not engaged in the regular business of
buying grain for sale, or handling, weighing, or
transporting grain for sale;
(2) any producer of grain who only incidentally or
occasionally sells or transports grain which the
producer has purchased;
(3) any person who transports grain for hire and does
not own a financial interest in such grain; or
(4) any person who buys grain for feeding or
processing and not for the purpose of reselling and
only incidentally or occasionally sells such grain as
grain.
(b)(1) All persons required to register under this Act shall
submit the following information to the Secretary:
(A) the name and principal address of the business,
(B) the names of all directors of such business,
(C) the names of the principal officers of such
business,
(D) the names of all persons in a control
relationship with respect to such business,
(E) a list of locations where the business conducts
substantial operations, and
(F) such other information as the Secretary deems
necessary to carry out the purposes of this Act.
Persons required to register under this section shall also
submit to the Secretary the information specified in clauses
(A) through (F) of this paragraph with respect to any business
engaged in the business of buying grain for sale in interstate
commerce, and in the business of handling, weighing, or
transporting of grain for sale in interstate commerce, if, with
respect to such business, the person otherwise required to
register under this section is in a control relationship.
(2) For the purposes of this section, a person shall be
deemed to be in a ``control relationship'' with respect to a
business required to register under subsection (a) and with
respect to applicable interstate business if--
(A) such person has an ownership interest of 10 per
centum or more in such business, or
(B) a business or group of business entities, with
respect to which such person is in a control
relationship, has an ownership interest of 10 per
centum or more in such business.
(3) For purposes of clauses (A) and (B) of paragraph (2) of
this subsection, a person shall be considered to own the
ownership interest which is owned by his or her spouse, minor
children, and relatives living in the same household.
(c) The Secretary shall issue a certificate of registration
to persons who comply with the provisions of this section. The
certificate or registration issued in accordance with this
section shall be renewed annually. If there has been any change
in the information required under subsection (b), the person
holding such certificate shall, within thirty days of the
discovery of such change, notify the Secretary of such change.
No person shall engage in the business of buying grain for sale
in foreign commerce, and in the business commerce unless the
person has registered with the Secretary as required by this
Act and has an unsuspended and unrevoked certificate of
registration.
(d) The Secretary may suspend or revoke any certificate of
registration issued under this section whenever, after the
person holding such certificate has been afforded an
opportunity for a hearing in accordance with sections 554, 556,
and 557 of title 5 of the United States Code, the Secretary
shall determine that such person has violated any provision of
this Act or of the regulations promulgated thereunder, or has
been convicted of any violation involving the handling,
weighing, or inspection of grain under title 18 of the United
States Code.
(e) The Secretary shall charge and collect fees from any
person registered under this section. The amount of such fees
shall be determined on the basis of the costs of the Secretary
in administering the registering required by this section. Such
fees shall be deposited in, and used as part of, the [fund
described] trust fund described in section 7(j) of this Act.
reporting requirements
Sec. 17B. (a) On December 1 of each year, the Secretary shall
submit a report to the Committee on Agriculture of the House of
Representatives and the Committee on Agriculture, Nutrition,
and Forestry of the Senate regarding the effectiveness of the
official inspection and weighing system under this Act for the
prior fiscal year, with recommendations for any legislative
changes necessary to accomplish the objectives stated in
section 2 of this Act.
(b) The Secretary shall notify the Committee on Agriculture
of the House of Representatives and the Committee on
Agriculture, Nutrition, and Forestry of the Senate (1) of any
complaint regarding faulty grain delivery made to the
Department of Agriculture by a foreign purchaser of United
States grain, within thirty days after a determination by the
Secretary that there is reasonable cause to believe that the
grain delivery was in fact faulty, and (2) notwithstanding the
provisions of section 812 of the Agricultural Act of 1970, as
added by the Agriculture and Consumer Protection Act of 1973 (7
U.S.C. 612c-3), within thirty days after receipt by the
Secretary or the Secretary of notice of the cancellation of any
contract for the export of more than one hundred thousand
metric tons of grain.
(c) On December 1 of each year, the Secretary shall submit to
the Committee on Agriculture of the House of Representatives
and the Committee on Agriculture, Nutrition, and Forestry of
the Senate a summary of all other complaints received by the
Department of Agriculture during the prior fiscal year from
foreign purchasers and prospective purchasers of United States
grain and other foreign purchasers interested in the trade of
grain, and the resolution thereof: Provided, That the summary
shall not include a complaint unless reasonable cause exists to
believe that the complaint is valid, as determined by the
Secretary.
(d) Enhancement of Current Reporting.--
(1) Increased frequency of inspection program data
reporting.--
(A) In general.--Beginning not later than 1
year after the date of enactment of this
subsection, the Secretary shall publish
quarterly reports describing data from the
tests and inspections for intrinsic quality
factors (including protein, oil, and starch)
and food safety factors, as reported, in the
aggregate, for fiscal years 2014 through 2018
in the tables in section V (relating to
providing official grain inspection and
weighing services) of the 2016 through 2018
annual reports to Congress by the Federal Grain
Inspection Service.
(B) Delineation.--The data from the tests and
inspections under subparagraph (A) shall be
delineated to reflect whether the tests and
inspections were requested of or performed by--
(i) the Secretary; or
(ii) a State agency delegated
authority under section 7 or 7A or an
official agency.
(2) Exceptions and waivers.--Beginning not later than
1 year after the date of enactment of this subsection,
the Secretary shall publish quarterly reports
describing--
(A) the number of exceptions requested under
section 7(f)(2)(B);
(B) the number of exceptions granted under
section 7(f)(2)(B);
(C) the number of waivers requested under
section 5(a)(1); and
(D) the number of waivers granted under
section 5(a)(1).
(e) Additional Reporting; Consultation.--[The Secretary may,
to the extent determined appropriate by the Secretary] On
December 1 of each year, the Secretary shall, in consultation
with State agencies delegated authority under sections 7 and
7A, official agencies, and the grain industries described in
the second sentence of section 21(a), publish--
(1) data relating to testing for other intrinsic
quality or food safety factors; [and]
(2) an analysis of any and all existing deficiencies
in the technology evaluation process and
recommendations to advance the efficiency, accuracy,
and consistency of grain grading and minimize costs
imposed on the Federal Government and the grain export
industry; and
[(2)] (3) other data collected from inspection and
weighing activities conducted under this Act.
(f) Protection of Confidential Business Information.--Any
trade secrets or information described in section 552(b)(4) of
title 5, United States Code, that is provided to or collected
by the Secretary in carrying out subsection (d) or (e) shall
not be included in a report under subsection (d) or (e) or
otherwise publicly disclosed.
* * * * * * *
SEC. 19. FUNDING.
(a) Authorization of Appropriations.--There are authorized to
be appropriated $23,000,000 for standardization and compliance
activities, monitoring in foreign ports grain officially
inspected and weighed under this Act, and any other expenses
necessary to carry out the provisions of this Act for each of
the fiscal years [2021 through 2025] 2026 through 2030, to the
extent that financing is not obtained from fees and sales of
samples as provided for in sections 7, 7A, 7B, 16, and 17A.
(b) Limitations on Uses of User Fees.--
(1) Definitions.--In this subsection:
(A) Official inspection or weighing
service.--The term ``official inspection or
weighing service'' means official inspection,
official weighing, supervision of weighing,
supervision of agency personnel, supervision of
the field office personnel of the Secretary,
testing of equipment or instruments, [other
services] other services (excluding grading
services performed under the Agricultural
Marketing Act of 1946), or registration, the
cost to the Secretary of which is authorized to
be covered by the collection of a user fee
pursuant to section 7, 7A, 7B, 16, or 17A, as
applicable.
(B) User fee.--The term ``user fee'' means a
fee collected by the Secretary under section 7,
7A, 7B, 16, or 17A.
(2) Requirement.--A user fee--
(A) shall be used solely to cover--
(i) the cost to the Secretary for
carrying out official inspection or
weighing services; and
(ii) administrative costs to the
Secretary directly relating to official
inspection or weighing services; and
(B) shall not be used for--
(i) activities relating to the
development or maintenance of grain
standards; or
(ii) any other activity that is not
directly related to the performance of
official inspection or weighing
services.
advisory committee
Sec. 21. (a) Not later than ninety days after the date of
enactment of this section, the Secretary shall establish an
advisory committee to provide advice to the Secretary with
respect to implementation of this Act consistent with the
declarations of policy in section 2 of this Act. The advisory
committee shall consist of fifteen members, appointed by the
Secretary, who represent the interests of all segments of the
grain producing, processing, storing, merchandising, consuming,
and exporting industries, including grain inspection and
weighing agencies and scientists with expertise in research
related to the policies established in section 2 of this Act.
Members of the advisory committee shall be appointed to three-
year terms, except that of the initial fifteen members of the
advisory committee first appointed following the enactment of
this section, five shall be appointed for terms of one year and
five shall be appointed for terms of two years. No member of
the advisory committee may serve successively for more than 2
terms. Notwithstanding the previous sentence, if the Secretary
does not make a new appointment upon the completion of a term
of an existing member (including such existing member's second
successive term), then such existing member shall continue to
serve until such appointment is made.
(b) The advisory committee shall be governed by the
provisions of chapter 10 of title 5, United States Code.
(c) The Secretary shall provide the advisory committee with
necessary clerical assistance and staff personnel.
(d) Members of the advisory committee shall serve without
compensation, if not otherwise officers or employees of the
United States, except that members shall, while away from their
homes or regular places of business in the performance of
services under this Act, be allowed travel expenses, including
per diem in lieu of subsistence, as authorized under section
5703 of title 5, United States Code.
(e) The authority provided to the Secretary for the
establishment and maintenance of an advisory committee under
this section shall expire on September 30, [2025] 2030.
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