[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[S. 667 Introduced in Senate (IS)]
108th CONGRESS
1st Session
S. 667
To amend the Food Security Act of 1985 to strengthen payment
limitations for commodity payments and benefits.
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IN THE SENATE OF THE UNITED STATES
March 19, 2003
Mr. Grassley (for himself, Mr. Hagel, Mr. Dorgan, Mr. Johnson, and Mr.
Daschle) introduced the following bill; which was read twice
and referred to the Committee on Agriculture, Nutrition, and
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_______________________________________________________________________
A BILL
To amend the Food Security Act of 1985 to strengthen payment
limitations for commodity payments and benefits.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. PAYMENT LIMITATIONS.
Section 1001 of the Food Security of 1985 (7 U.S.C. 1308) is
amended--
(1) in subsection (b)(1), by striking ``$40,000'' and
inserting ``$20,000'';
(2) in subsection (c)(1), by striking ``$65,000'' and
inserting ``$30,000'';
(3) by striking ``(d)'' and all that follows through the
end of paragraph (1) and inserting the following:
``(d) Limitations on Marketing Loan Gains, Loan Deficiency
Payments, and Commodity Certificate Transactions.--
``(1) Loan commodities.--The total amount of the following
gains and payments that a person may receive during any crop
year may not exceed $87,500:
``(A)(i) Any gain realized by a producer from
repaying a marketing assistance loan for 1 or more loan
commodities under subtitle B of title I of the Farm
Security and Rural Investment Act of 2002 (7 U.S.C.
7931 et seq.) at a lower level than the original loan
rate established for the loan commodity under that
subtitle.
``(ii) In the case of settlement of a marketing
assistance loan for 1 or more loan commodities under
that subtitle by forfeiture, the amount by which the
loan amount exceeds the repayment amount for the loan
if the loan had been settled by repayment instead of
forfeiture.
``(B) Any loan deficiency payments received for 1
or more loan commodities under that subtitle.
``(C) Any gain realized from the use of a commodity
certificate issued by the Commodity Credit Corporation
for 1 or more loan commodities, as determined by the
Secretary, including the use of a certificate for the
settlement of a marketing assistance loan made under
that subtitle.''; and
(4) by adding at the end the following:
``(h) Single Farming Operation.--
``(1) In general.--Notwithstanding subsections (b) through
(d), subject to paragraph (2), if a person participates only in
a single farming operation and receives, directly or
indirectly, any payment or gain covered by this section through
the operation, the total amount of payments or gains (as
applicable) covered by this section that the person may receive
during any crop year may not exceed twice the applicable dollar
amounts specified in subsections (b), (c), and (d).
``(2) Individuals.--The total amount of payments or gains
(as applicable) covered by this section that an individual
person may receive during any crop year may not exceed
$275,000.
``(i) Spouse Equity.--Notwithstanding subsections (b) through (d),
except as provided in subsection (e)(2)(C)(i), if an individual and
spouse are covered by subsection (e)(2)(C) and receive, directly or
indirectly, any payment or gain covered by this section, the total
amount of payments or gains (as applicable) covered by this section
that the individual and spouse may jointly receive during any crop year
may not exceed twice the applicable dollar amounts specified in
subsections (b), (c), and (d).
``(j) Regulations.--
``(1) In general.--Not later than July 1, 2003, the
Secretary shall promulgate regulations--
``(A) to ensure that total payments and gains
described in this section made to or through joint
operations or multiple entities under the primary
control of a person, in combination with the payments
and gains received directly by the person, shall not
exceed twice the applicable dollar amounts specified in
subsections (b), (c), and (d);
``(B) in the case of a person that in the aggregate
owns, conducts farming operations, or provides custom
farming services on land with respect to which the
aggregate payments received by the person exceed the
applicable dollar amounts specified in subsections (b),
(c), and (d), to attribute all payments and gains made
to the person on crops produced on the land to--
``(i) a person that rents land for a share
of the crop that is less than the usual and
customary rate, as determined by the Secretary;
``(ii) a person that provides custom
farming services through arrangements under
which--
``(I) all or part of the
compensation for the services is at
risk;
``(II) farm management services are
provided by--
``(aa) the same person;
``(bb) an immediate family
member; or
``(cc) an entity or
individual that has a business
relationship that is not an
arm's length relationship, as
determined by the Secretary; or
``(III) more than \2/3\ of all
payments received for custom farming
services are received by--
``(aa) the same person;
``(bb) an immediate family
member; or
``(cc) an entity or
individual that has a business
relationship that is not an
arm's length relationship, as
determined by the Secretary; or
``(iii) a person under such other
arrangements as the Secretary determines are
established to transfer payments from persons
that would otherwise exceed the applicable
dollar amounts specified in subsections (b),
(c), and (d); and
``(C) to ensure that payments attributed under this
section to a person other than the direct recipient
shall also count toward the limit of the direct
recipient.
``(2) Primary control.--The regulations under paragraph (1)
shall define `primary control' to include a joint operation or
multiple entity in which a person owns an interest that is
greater than the total interests held by other persons that
materially participate on a regular, substantial, and
continuous basis in the management of the operation or
entity.''.
SEC. 2. REGULATIONS.
(a) In General.--The Secretary of Agriculture may promulgate such
regulations as are necessary to implement this Act and the amendments
made by this Act.
(b) Procedure.--The promulgation of the regulations and
administration of this Act and the amendments made by this Act shall be
made without regard to--
(1) the notice and comment provisions of section 553 of
title 5, United States Code;
(2) 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
(3) chapter 35 of title 44, United States Code (commonly
known as the ``Paperwork Reduction Act'').
(c) Congressional Review of Agency Rulemaking.--In carrying out
this section, the Secretary shall use the authority provided under
section 808 of title 5, United States Code.
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