article: SECTION 1. SHORT TITLE. This Act may be cited as the ``Agricultural Market Promotion Program Amendments Act of 1993''. SEC. 2. MODIFICATIONS TO MARKET PROMOTION PROGRAM. (a) Small-Sized Commercial Entities and Medium-Sized Commercial Entities That Are Beginning Exporters.--Section 203(c) of the Agricultural Trade Act of 1978 (7 U.S.C. 5623(c)) is amended-- (1) in paragraph (2), by striking ``in the case of an unfair trade practice'' and inserting ``in the case of-- ``(A) an unfair trade practice; or ``(B) a small-sized commercial entity, or a medium- sized commercial entity, that is a beginning exporter, as determined by the Secretary.''; and (2) by adding at the end the following new paragraph: ``(3) Goal for small-sized commercial entities and medium- sized commercial entities that are beginning exporters.--In carrying out the program established under this section, the Secretary shall use, to the maximum extent practicable, at least 30 percent of the total funds available or 30 percent of the value of any commodities employed, as determined by the Secretary, for each of fiscal years 1994 and 1995 for program activities involving small-sized commercial entities, and medium-sized commercial entities, that are beginning exporters.''. (b) Branded Promotion.--Section 203(e)(4) of such Act is amended by adding at the end the following new sentence: ``Assistance provided under this paragraph may be used only for market promotion activities that are in addition to activities for which a commercial entity expends an amount during a year in a foreign country, in United States dollars adjusted to reflect the latest Consumer Price Index for all- urban consumers published by the Department of Labor, that is equal to the dollar amount expended by the commercial entity (other than amounts provided under this section) on all market promotion activities during the preceding year in the foreign country.''. (c) Other Terms and Conditions.--Section 203(f) of such Act is amended by adding at the end the following new paragraphs: ``(4) Independent audits.--In addition to an audit that is required by section 403, the Secretary shall require that, as a condition of eligibility for assistance under this section, a commercial entity that receives more than $50,000 a year in assistance under this section shall provide for an independent audit of program activities under this section during the year to determine whether the entity has complied with the requirements of this section. ``(5) Prohibition on assistance for tobacco.--No assistance under this section may be used for the development, maintenance, or expansion of a commercial export market for tobacco. ``(6) Definitions.--As used in this section: ``(A) Commercial entity.--The term `commercial entity' means a cooperative or private organization that exports or promotes an agricultural commodity, including an entity that controls, is controlled by, or is under common control with such a cooperative or private organization. ``(B) Medium-sized commercial entity.--The term `medium-sized commercial entity' means a commercial entity that employs not less than 51, nor more than 500, individuals. ``(C) Small-sized commercial entity.--The term `small-sized commercial entity' means a commercial entity that employs not more than 50 individuals.''. (d) Graduation.--Paragraph (2) of section 203(g) of such Act is amended to read as follows: ``(2) Limitations.-- ``(A) Branded promotion.-- ``(i) In general.--Assistance provided under this section to a commercial entity for activities described in subsection (e)(4) that are conducted in a foreign country-- ``(I) during each year of the first 3-year period the commercial entity receives assistance for the activities, shall not exceed 50 percent of the cost of implementing the marketing plan in the country; ``(II) during the 4th year of the period the commercial entity receives assistance for the activities, shall not exceed 33 percent of the cost of implementing the marketing plan in the country; and ``(III) during the 5th year of period the commercial entity receives assistance for the activities, shall not exceed 17 percent of the cost of implementing the marketing plan in the country. ``(ii) Maximum period.--Assistance provided under this section to a commercial entity for activities described in subsection (e)(4) that are conducted in a foreign country shall not be provided for more than 5 years. ``(B) Generic promotion.-- ``(i) In general.--To be eligible for assistance under this section (other than for activities described in subsection (e)(4) or clause (iii)), an eligible trade organization shall contribute a larger share of the cost of a marketing plan for a foreign country in each year the organization conducts activities in the country, as determined by the Secretary. ``(ii) Maximum period.--The nonfederal share shall be progressively increased in such a manner that an eligible trade organization shall not receive assistance under this section in the country for more than 5 years. ``(iii) Regional state-related trade organizations.--Assistance may be provided under this section for a period not to exceed 5 years for each agricultural commodity for which an eligible regional State-related organization has an approved marketing place for an activity, other than for an activity described in subsection (e)(4). ``(C) Waiver.--The Secretary may waive the limitations described in subparagraphs (A) and (B) in the case of an agricultural commodity with respect to which there has been a favorable decision by the United States Trade Representative under section 301 of the Trade Act of 1974 (19 U.S.C. 2411). To grant waivers, the Secretary shall establish criteria that are consistent and documented.''. SEC. 3. COOPERATOR FOREIGN MARKET DEVELOPMENT PROGRAM. Section 1126(b) of the Food Security Act of 1985 (7 U.S.C. 1736u(b)) is amended by striking ``shall be'' and inserting ``shall not be''. SEC. 4. EFFECTIVE DATE; REGULATIONS. (a) Effective Date.--This Act and the amendments made by this Act shall become effective on the date of enactment of this Act. (b) Regulations.--Not later than 60 days after the date of enactment of this Act, the Secretary of Agriculture shall issue regulations to carry out this Act and the amendments made by this Act.
summary: Agricultural Market Promotion Program Amendments Act of 1993 - Amends the Agricultural Trade Act of 1978 with regard to the agricultural market promotion program to: (1) give priority to, and obligate specified funds for, small and medium beginning exporters; (2) permit assistance for branded promotion only to supplement an entity's own promotional activities; (3) prohibit assistance for tobacco promotion; and (4) incrementally reduce and eliminate over a five-year period assistance for branded and generic promotion in a foreign country.