2000 
[DOCID: f:h2164ih.txt]






107th CONGRESS
  1st Session
                                H. R. 2164

To amend the Agricultural Market Transition Act to gradually reduce the 
    loan rate for peanuts, to repeal peanut quotas for the 2004 and 
   subsequent crops, and to require the Secretary of Agriculture to 
purchase peanuts and peanut products for nutrition programs only at the 
              world market price, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             June 13, 2001

   Mr. Shays (for himself, Mr. Kanjorski, Mr. Kolbe, Mr. Toomey, Mr. 
English, Mr. Miller of Florida, Mr. Bass, Mr. Barrett of Wisconsin, Mr. 
  Sununu, Mr. Borski, Mr. Smith of New Jersey, Mr. Sensenbrenner, Mr. 
       Lipinski, Mr. Kirk, Mr. Upton, Mr. Souder, Mr. Gekas, Mr. 
 Frelinghuysen, Mr. Brady of Pennsylvania, Mr. Pallone, Mrs. Roukema, 
Mr. Blumenauer, Mr. Hutchinson, Mrs. Kelly, Mr. Rohrabacher, Mr. Crane, 
Mr. Wamp, Mr. Ryan of Wisconsin, Mr. Capuano, Mrs. Maloney of New York, 
 Mrs. Morella, Mr. Pitts, Mr. Goss, Mr. Luther, Mr. Frank, Mr. Allen, 
 Mr. Keller, Mrs. Biggert, Mr. LoBiondo, Mr. Royce, Mr. Gutierrez, and 
 Mr. George Miller of California) introduced the following bill; which 
 was referred to the Committee on Agriculture, and in addition to the 
     Committee on Education and the Workforce, for a period to be 
subsequently determined by the Speaker, in each case for consideration 
  of such provisions as fall within the jurisdiction of the committee 
                               concerned

_______________________________________________________________________

                                 A BILL


 
To amend the Agricultural Market Transition Act to gradually reduce the 
    loan rate for peanuts, to repeal peanut quotas for the 2004 and 
   subsequent crops, and to require the Secretary of Agriculture to 
purchase peanuts and peanut products for nutrition programs only at the 
              world market price, 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. REDUCTION IN LOAN RATES FOR PEANUTS.

    (a) Loan Rate Reduction.--Subsection (a) of section 155 of the 
Agricultural Market Transition Act (7 U.S.C. 7271) is amended by 
striking paragraph (2) and inserting the following new paragraph:
            ``(2) Loan rate.--The national average quota loan rate for 
        quota peanuts shall be as follows:
                    ``(A) $610 per ton for the 2001 crop.
                    ``(B) $550 per ton for the 2002 crop.
                    ``(C) $500 per ton for the 2003 crop.''.
    (b) Extension of Marketing Assessment.--Subsection (g) of such 
section is amended by striking ``2002'' both places it appears and 
inserting ``2003''.
    (c) Conforming Amendment.--Subsection (h) of such section is 
amended by striking ``2002'' and inserting ``2003''.
    (d) Continued Suspension of Certain Peanut Quota Provisions.--The 
following provisions of the Agricultural Adjustment Act of 1938 shall 
not be applicable to the 2003 crops of peanuts:
            (1) Subsections (a) through (j) of section 358 (7 U.S.C. 
        1358).
            (2) Subsections (a) through (h) of section 358a (7 U.S.C. 
        1358a).
            (3) Subsections (a), (b), (d), and (e) of section 358d (7 
        U.S.C. 1359).
            (4) Part I of subtitle C of title III (7 U.S.C. 1361-1368).

SEC. 2. NONRECOURSE LOANS FOR 2004 AND SUBSEQUENT CROPS OF PEANUTS.

    (a) Loan Program.--The Agricultural Market Transition Act is 
amended by inserting after section 155 (7 U.S.C. 7271) the following 
new section:

``SEC. 155A. PEANUT PROGRAM FOR 2004 AND SUBSEQUENT CROPS.

    ``(a) Availability of Loans.--The Secretary shall make nonrecourse 
loans available to producers of peanuts for each of the 2004 and 
subsequent crops of peanuts.
    ``(b) Loan Rate.--
            ``(1) In general.--Subject to paragraph (2), the Secretary 
        shall offer nonrecourse loans to peanut producers under 
        subsection (a) at a rate equal to not less than 85 percent of 
        the simple average price received by producers for peanuts, as 
        determined by the Secretary, during the marketing year for each 
        of the immediately preceding 5 crops of peanuts, excluding the 
        year in which the average price was the highest and the year in 
        which the average price was the lowest during the period.
            ``(2) Maximum loan rate.--Notwithstanding paragraph (1), 
        the loan rate under subsection (a) shall not exceed $350 per 
        ton.
            ``(3) Announcement.--The Secretary shall announce the loan 
        rate for each crop of peanuts not later than the February 15 
        preceding the marketing year for which the loan rate is being 
        determined.
    ``(c) Inspection, Handling, or Storage.--The loan rate determined 
under subsection (b) for a crop of peanuts shall not be reduced by any 
deduction for inspection, handling, or storage.
    ``(d) Location and Other Factors.--The Secretary may make 
adjustments in the loan rate determined under subsection (b) for the 
location of peanuts and such other factors as are authorized by section 
403(a) of the Agricultural Act of 1949 (7 U.S.C. 1423).
    ``(e) No Net Cost Requirement.--Loans under subsection (a) shall be 
administered at no net cost to the Commodity Credit Corporation.
    ``(f) Marketing of Peanuts Owned or Controlled by Commodity Credit 
Corporation.--Any peanuts owned or controlled by the Commodity Credit 
Corporation may be made available for domestic edible use, in 
accordance with regulations issued by the Secretary, so long as doing 
so results in no net cost to the Commodity Credit Corporation.
    ``(g) Commodity Credit Corporation.--The Secretary shall carry out 
the program authorized by this section through the Commodity Credit 
Corporation.''.
    (b) Repeal of Other Peanut Price Support Authority.--The 
Agricultural Act of 1949 (7 U.S.C. 1441 et seq.) is amended--
            (1) in section 101(b) (7 U.S.C. 1441(b)), by striking ``and 
        peanuts''; and
            (2) in section 408 (7 U.S.C. 1428)--
                    (A) in subsection (c), by striking ``peanuts,''; 
                and
                    (B) in subsection (d), by inserting before the 
                period at the end the following: ``or peanuts''.

SEC. 3. ELIMINATION OF PEANUT QUOTAS FOR 2004 AND SUBSEQUENT CROPS OF 
              PEANUTS.

    (a) In General.--Part VI of subtitle B of title III of the 
Agricultural Adjustment Act of 1938 (7 U.S.C. 1357 et seq.) is 
repealed.
    (b) Conforming Amendments.--
            (1) Definitions.--Section 301(b) of the Agricultural 
        Adjustment Act of 1938 (7 U.S.C. 1301(b)) is amended--
                    (A) in paragraph (3)(A), by striking ``corn, rice, 
                and peanuts'' and inserting ``corn and rice'';
                    (B) in paragraph (6), by striking subparagraph (C);
                    (C) in paragraph (10)(A)--
                            (i) by striking ``wheat, and peanuts'' and 
                        inserting ``and wheat''; and
                            (ii) by striking ``; 20 per centum in the 
                        case of wheat; and 15 per centum in the case of 
                        peanuts'' and inserting ``; and 20 percent in 
                        the case of wheat'';
                    (D) in paragraph (13)--
                            (i) by striking subparagraphs (B) and (C); 
                        and
                            (ii) in subparagraph (G), by striking ``or 
                        peanuts'' both places it appears; and
                    (E) in paragraph (16)(A), by striking ``rice, and 
                peanuts'' and inserting ``and rice''.
            (2) Administrative provisions.--Section 361 of the 
        Agricultural Adjustment Act of 1938 (7 U.S.C. 1361) is amended 
        by striking ``peanuts,''.
      
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      (3) Adjustment of quotas.--Section 371 of the Agricultural 
        Adjustment Act of 1938 (7 U.S.C. 1371) is amended--
                    (A) in the first sentence of subsection (a), by 
                striking ``peanuts,''; and
                    (B) in the first sentence of subsection (b), by 
                striking ``peanuts''.
            (4) Reports and records.--Section 373 of the Agricultural 
        Adjustment Act of 1938 (7 U.S.C. 1373) is amended--
                    (A) in subsection (a), by striking the first 
                sentence and inserting the following new sentence: 
                ``This subsection shall apply to warehousemen, 
                processors, and common carriers of corn, wheat, cotton, 
                rice, or tobacco, and all ginners of cotton, all 
                persons engaged in the business of purchasing corn, 
                wheat, cotton, rice, or tobacco from producers, and all 
                persons engaged in the business of redrying, prizing, 
                or stemming tobacco for producers.''; and
                    (B) in subsection (b), by striking ``peanuts,''.
            (5) Regulations.--Section 375(a) of the Agricultural 
        Adjustment Act of 1938 (7 U.S.C. 1375(a)) is amended by 
        striking ``peanuts,''.
            (6) Eminent domain.--The first sentence of section 378(c) 
        of the Agricultural Adjustment Act of 1938 (7 U.S.C. 1378(c)) 
        is amended by striking ``cotton, tobacco, and peanuts,'' and 
        inserting ``cotton and tobacco,''.
    (c) Liability.--A provision of this section or an amendment made by 
this section shall not affect the liability of any person under any 
provision of law as in effect before the application of the provision 
of this section or the amendment in accordance with this section.
    (d) Effective Date.--The amendments made by this section shall take 
effect October 1, 2003, and shall apply with respect to the 2004 and 
subsequent crops of peanuts.

SEC. 4. PURCHASE OF PEANUTS FOR NUTRITION PROGRAMS.

    Section 14 of the National School Lunch Act (42 U.S.C. 1762a) is 
amended by adding at the end the following:
    ``(h) Purchase of Peanuts for Nutrition Programs.--
            ``(1) Definitions.--In this subsection--
                    ``(A) Additional peanuts.--The term `additional 
                peanuts' has the meaning given the term in section 358-
                1(e) of the Agricultural Adjustment Act of 1938 (7 
                U.S.C. 1358-1(e)).
                    ``(B) Covered program.--The term `covered program' 
                means--
                            ``(i) a program established under this Act;
                            ``(ii) a program established under the 
                        Child Nutrition Act of 1966 (42 U.S.C. 1771 et 
                        seq.);
                            ``(iii) the emergency food assistance 
                        program established under the Emergency Food 
                        Assistance Act of 1983 (7 U.S.C. 7501 et seq.);
                            ``(iv) the food distribution program on 
                        Indian reservations established under section 
                        4(b) of the Food Stamp Act of 1977 (7 U.S.C. 
                        2013(b));
                            ``(v) the commodity distribution program 
                        established under section 4 of the Agriculture 
                        and Consumer Protection Act of 1973 (Public Law 
                        93-86; 7 U.S.C. 612c note);
                            ``(vi) the commodity supplemental food 
                        program established under section 5 of the 
                        Agriculture and Consumer Protection Act of 1973 
                        (Public Law 93-86; 7 U.S.C. 612c note); and
                            ``(vii) a nutrition program carried out 
                        under part C of title III of the Older 
                        Americans Act of 1965 (42 U.S.C. 3030e et 
                        seq.).
            ``(2) Purchases.--Notwithstanding any other provision of 
        law, in purchasing peanuts or peanut products to carry out a 
        covered program, the Secretary shall--
                    ``(A) purchase the peanuts or peanut products at a 
                price that is not more than the prevailing world market 
                price for peanuts or peanut products produced in the 
                United States, as determined by the Secretary; and
                    ``(B) in the case of peanut purchases, purchase 
                only additional peanuts.
            ``(3) Domestic edible use.--Notwithstanding any other 
        provision of law, additional peanuts purchased by the Secretary 
        to carry out a covered program shall not be considered to be 
        peanuts for domestic edible use under the Agricultural 
        Adjustment Act of 1938 (7 U.S.C. 1281 et seq.) or Agricultural 
        Market Transition Act (7 U.S.C. 7201 et seq.).
            ``(4) Supply.--The Secretary shall take such actions as are 
        necessary to ensure, to the maximum extent practicable, that an 
        adequate supply of additional peanuts is available to carry out 
        covered programs.
            ``(5) Penalties.--Notwithstanding any other provision of 
        law, a person that produces additional peanuts that are sold to 
        the Secretary, or sells additional peanuts to the Secretary, 
        for a covered program shall not be subject to a penalty or 
        other sanction for the production or sale of the additional 
        peanuts.''.
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