article: SECTION 1. SHORT TITLE. This Act may be cited as the ``USDA Debarment Act of 1993''. SEC. 2. FINDINGS. Congress finds that-- (1) dating back to 1986, several Secretaries of Agriculture have failed to comply with Executive Order No. 12549, which was intended to ensure that the Federal Government did not continue to do business with companies that violate the regulations of a program of any Executive agency; (2) several companies that have violated the regulations of programs within the Department of Agriculture (such as programs related to international agricultural trade, food and nutrition, commodity storage, and livestock trade) continue to participate in the programs with respect to which the companies have violated the regulations; and (3) companies that have violated, and continue to violate, regulations governing Department programs have received billions of dollars, and continue to monetarily benefit. SEC. 3. DEFINITIONS. As used in this Act: (1) Department.--The term ``Department'' means the United States Department of Agriculture. (2) Executive agency.--The term ``Executive agency'' has the same meaning as is provided in section 105 of title 5, United States Code. (3) Final determination.--The term ``final determination'' means the final decision of the Secretary in a nonprocurement debarment proceeding involving a person as to whether the person has committed a material violation-- (A) including a final decision regarding the term of the debarment; but (B) not including a decision as to whether there is sufficient reason for initiation of a nonprocurement debarment proceeding. (4) Material violation.--The term ``material violation'' means an action or series of actions taken by a person that constitute a substantial and material violation of a regulation of a program of the Department, as determined by the Secretary. (5) Nonprocurement debarment.--The term ``nonprocurement debarment'' means an action to bar a person from programs and activities involving Federal financial and nonfinancial assistance offered by the Department, but not including-- (A) Federal procurement programs and activities; (B) contracts entered into by the Commodity Credit Corporation under the price support operations and other programs of the Corporation with persons in the capacities of the persons as agricultural producers; (C) conservation programs administered by the Secretary; and (D) individuals and households who participate in nutrition assistance programs administered by the Secretary. (6) Person.--The term ``person'' means any individual, corporation, partnership, association, or other legal entity, however organized, who is participating, or has participated, in a program or activity of the Department. (7) Secretary.--The term ``Secretary'' means the Secretary of Agriculture. SEC. 4. NONPROCUREMENT DEBARMENT. (a) Initiation of Proceedings.--Except as provided in subsection (c), if the Secretary obtains notice of the alleged occurrence of a material violation of a regulation of a program or activity of the Department and the Secretary determines under subsection (b) that there is sufficient reason for initiation of a nonprocurement debarment proceeding the Secretary shall initiate a nonprocurement debarment proceeding against the person not later than 180 days after the determination. (b) Sufficient Reason for Initiation of Nonprocurement Debarment Proceedings.--Subject to subsection (c), sufficient reason for initiation of a nonprocurement debarment proceeding includes, as determined by the Secretary-- (1) the violation of a Federal or State law relevant to the integrity or orderly administration of the program or activity of the Department in which the person is participating; or (2) the commission of an action that may constitute a material violation of a regulation applicable to a program or activity of the Department. (c) Exception.--If the Secretary determines that a decision to initiate a nonprocurement debarment proceeding cannot be made within the 180-day period referred to in subsection (a) because of the need to further investigate the actions of a person relating to the alleged material violation, the Secretary may have such additional time as the Secretary considers necessary to make a decision, but not more than 180 days beyond the original 180-day period. SEC. 5. NONPROCUREMENT DEBARMENT PROCEEDINGS. (a) Notice and Hearing.--Subsequent to the determination that there is sufficient reason for initiation of a nonprocurement debarment proceeding under section 4, the Secretary shall provide the person against whom the proceeding has been initiated with-- (1) full notice of the allegations; (2) the opportunity for an informal hearing not on the record, in which the person is provided appropriate due process procedures, as determined by the Secretary, including an opportunity to rebut any allegation of a material violation; (3) notice of the finding of the Secretary on whether 1 or more material violations were committed by the person; and (4) notice of the appropriate period of debarment. (b) Period of Debarment.--Subject to subsection (e), a person determined to have committed a material violation shall be ineligible to participate in the program or activity in which the material violation occurred during the 5-year period beginning on the date of the determination. (c) Previous Debarment.--Subject to subsection (e), a person who has been previously debarred by another Executive agency, or has been previously debarred under a nonprocurement debarment proceeding under this Act, who is determined by the Secretary to have committed a material violation based on a separate set of factual occurrences, shall be permanently debarred from participating in any program or activity of the Department. (d) Exhaustion of Administrative Remedies.--Prior to seeking judicial review in a court of competent jurisdiction, a person against whom a nonprocurement debarment proceeding has been initiated shall-- (1) exhaust all administrative procedures prescribed by the Secretary; and (2) receive notice of the final determination of the Secretary. (e) Good Faith.--If the Secretary determines that a person, against whom there is sufficient reason for initiation of a nonprocurement debarment proceeding, or against whom a finding of material violation has already been made, committed the act that is the subject of the nonprocurement debarment proceeding in good faith, the Secretary may reduce or eliminate the applicable periods of debarment specified in subsections (b) and (c). (f) Coordination.--To the maximum extent practicable, the Secretary shall consolidate and coordinate any nonprocurement debarment action taken under this Act with other adverse actions within the Department, including other nonprocurement debarment actions. (g) Precedence.--This Act shall take precedence over any administrative procedure for debarment that affects the Department, to the extent that the procedure conflicts with this Act. SEC. 6. REPORT ON CONSISTENT DEBARMENT POLICY. Not later than 120 days after the date of enactment of this Act, the Director of the Office of Management and Budget shall advise the appropriate committees of Congress and the Comptroller General of the United States as to the appropriateness and usefulness of a policy for procurement debarment and a policy for nonprocurement debarment that are applicable all Executive agencies. SEC. 7. REGULATIONS. (a) In General.--Not later than 30 days after the date of enactment of this Act, the Secretary shall issue regulations to ensure compliance with such provisions of Executive Order No. 12549 as are not in conflict with this Act. (b) Rulemaking Proceeding.--Not later than 30 days after the date of enactment of this Act, the Secretary shall initiate a rulemaking proceeding to implement this Act. The rulemaking proceeding shall-- (1) identify all agencies, programs, and activities that are affected by this Act; (2) specify what is sufficient reason for initiation of a nonprocurement debarment proceeding; (3) specify the procedures for the proceeding; (4) specify guidelines for the finding of a material violation; and (5) specify the administrative action to be taken against a person found to have committed a material violation. SEC. 8. TERMINATION OF AUTHORITY. The authority provided by this Act shall terminate on September 30, 1999.
summary: USDA Debarment Act of 1993 - Directs the Secretary of Agriculture to carry out debarment procedures against persons materially violating nonprocurement program regulations.