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SEC. 202.12 PROVISION OF AGRICULTURAL COMMODITIES.

ASSISTANCE.-Notwithstanding

(a) EMERGENCY any other provision of law, the Administrator may provide agricultural commodities to meet emergency food needs under this title through governments and public or private agencies, including intergovernmental organizations such as the World Food Program and other multilateral organizations, in such manner and on such terms and conditions as the Administrator determines appropriate to respond to the emergency.

(b) NON-EMERGENCY ASSISTANCE.-The Administrator may provide agricultural commodities for non-emergency assistance under this title through eligible organizations (as described in subsection (d)) that have entered into an agreement with the Administrator to use such commodities in accordance with this title.

(c) USES OF ASSISTANCE.-Agricultural commodities provided under this title may be made available for direct distribution, sale, barter, or other appropriate disposition.

(d) ELIGIBLE ORGANIZATIONS.-To be eligible to receive assistance under subsection (b) an organization shall be

(1) a private voluntary organization or cooperative that is, to the extent practicable, registered with the Administrator; or (2) an intergovernmental organization, such as the World Food Program.

(e) SUPPORT FOR PRIVATE VOLUNTARY ORGANIZATIONS AND COOP

ERATIVES.

(1) IN GENERAL. Of the funds made available in each fiscal year under this title to private voluntary organizations and cooperatives, not less than $10,000,000 and not more than $13,500,000 shall be made available by the Administrator to assist such organizations and cooperatives in—

(A) establishing new programs under this title; and

(B) meeting specific administrative, management, personnel and internal transportation and distribution costs for carrying out programs in foreign countries under this title.

(2) REQUEST FOR FUNDS.-In order to receive funds made available under paragraph (1), a private voluntary organization or cooperative must submit a request for such funds (which must be approved by the Administrator) when submitting a proposal to the Administrator for an agreement under this title. Such request for funds shall include a specific explanation of

(A) the program costs to be offset by such funds;

(B) the reason why such funds are needed in carrying out the particular assistance program; and

(C) the degree to which such funds will improve the provision of food assistance to foreign countries (particularly those in sub-Saharan Africa suffering from acute, longterm food shortages).

(3) ASSISTANCE WITH RESPECT TO SALE.-Upon the request of a private voluntary organization or cooperative, the Administra

12 7 U.S.C. 1722.

tor may provide assistance to that organization or cooperative with respect to the sale of agricultural commodities made available to it under this title.

(f) EFFECTIVE USE OF COMMODITIES.-To ensure that agricultural commodities made available under this title are used effectively and in the areas of greatest need, organizations or cooperatives through which such commodities are distributed shall

(1) to the extent feasible, work with indigenous institutions and employ indigenous workers;

(2) assess and take into account nutritional and other needs of beneficiary groups;

(3) help such beneficiary groups design and carry out mutually acceptable projects;

(4) recommend to the Administrator methods of making assistance available that are the most appropriate for each local setting;

(5) supervise the distribution of commodities provided and the implementation of programs carried out under this title; and

(6) periodically evaluate the effectiveness of projects undertaken under this title.

(g) LABELING.-Commodities provided under this title shall, to the extent practicable, be clearly identified with appropriate markings on the package or container of such commodity in the language of the locality in which such commodities are distributed, as being furnished by the people of the United States of America. SEC. 203.13 GENERATION AND USE OF FOREIGN CURRENCIES BY PRIVATE VOLUNTARY ORGANIZATIONS AND COOPERATIVES.

(a) LOCAL SALE AND BARTER OF COMMODITIES.-An agreement entered into between the Administrator and a private voluntary organization or cooperative to provide food assistance through such organization or cooperative under this title may provide for the sale or barter in the recipient country of the commodities to be provided under such agreement.

(b) MINIMUM LEVEL OF LOCAL SALES.-In carrying out agreements of the type referred to in subsection (a), the Administrator shall permit private voluntary organizations and cooperatives to sell, in recipient countries, an amount of commodities equal to not less than 10 percent of the aggregate amounts of all commodities distributed under non-emergency programs under this title for each fiscal year, to generate foreign currency proceeds to be used as provided in this section.

(c) DESCRIPTION OF INTENDED USES.-A private voluntary organization or cooperative submitting a proposal to enter into a nonemergency food assistance agreement under this title shall include in such proposal a description of the intended uses of any foreign currency proceeds that may be generated through the sale, in the recipient country, of any commodities provided under an agreement entered into between the Administrator and the organization or cooperative.

137 U.S.C. 1723.

(d) USE.-Foreign currencies generated from any partial or full sale or barter of commodities by a private voluntary organization or cooperative under a non-emergency food assistance agreement under this title may

(1) be used to transport, store, distribute, and otherwise enhance the effectiveness of the use of agricultural commodities provided under this title;

(2) be used to implement income generating, community development, health, nutrition, cooperative development, agricultural, and other developmental activities within the recipient country; or

(3) be invested and any interest earned on such investment may be used for the purposes for which the assistance was provided to that organization, without further appropriation by Congress.

SEC. 204.14 LEVELS OF ASSISTANCE.

(a) MINIMUM LEVELS.

(1) MINIMUM ASSISTANCE.-Except as provided in paragraph (3), the Administrator shall make agricultural commodities available for food distribution under this title in an amount that

(A) for fiscal year 1991, is not less than 1,925,000 metric tons;

(B) for fiscal year 1992, is not less than 1,950,000 metric tons;

(C) for fiscal year 1993, is not less than 1,975,000 metric tons;

(D) for fiscal year 1994, is not less than 2,000,000 metric tons; and

(E) for fiscal year 1995, is not less than 2,025,000 metric tons.

(2) MINIMUM NON-EMERGENCY ASSISTANCE. Of the amounts specified in paragraph (1), and except as provided in paragraph (3), the Administrator shall make agricultural commodities available for non-emergency food distribution through eligible organizations under section 202 in an amount that

(A) for fiscal year 1991, is not less than 1,450,000 metric tons;

(B) for fiscal year 1992, is not less than 1,475,000 metric tons;

(C) for fiscal year 1993, is not less than 1,500,000 metric tons;

(D) for fiscal year 1994, is not less than 1,525,000 metric tons; and

(E) for fiscal year 1995, is not less than 1,550,000 metric tons.

(3) EXCEPTION.-The Administrator may waive the requirements of paragraphs (1) and (2) for any fiscal year if the Administrator determines that such quantities of commodities cannot be used effectively to carry out this title or in order to meet an emergency. In making a waiver under this paragraph,

147 U.S.C. 1724.

the Administrator shall prepare and submit to the Committee on Foreign Affairs and Committee on Agriculture of the House of Representatives, and the Committee on Agriculture, Nutrition, and Forestry of the Senate a report containing the reasons for the waiver.

(b) USE OF VALUE-ADDED COMMODITIES.

(1) MINIMUM LEVELS.-Except as provided in paragraph (2), in making agricultural commodities available under this title, the Administrator shall ensure that not less than 75 percent of the quantity of such commodities required to be distributed during each fiscal year under subsection (a)(2) be in the form of processed, fortified, or bagged commodities.

(2) WAIVER OF MINIMUM.-The Administrator may waive the requirement of paragraph (1) for any fiscal year in which the Administrator determines that the requirements of the programs established under this title will not be best served by the enforcement of such requirement under such paragraph.

SEC. 205.15 FOOD AID CONSULTATIVE GROUP.

(a) ESTABLISHMENT.-There is established a Food Aid Consultative Group (hereinafter referred to in this section as the "Group") that shall meet regularly to review and address issues concerning the effectiveness of the regulations and procedures that govern food assistance programs established and implemented under this title, and the implementation of other provisions of this title that may involve private voluntary organizations, cooperatives and indigenous non-governmental organizations.

(b) MEMBERSHIP.-The Group shall be composed of

(1) the Administrator;

(2) the Under Secretary for International Affairs and Commodity Programs;

(3) the Inspector General of the Agency for International Development;

(4) a representative of each private voluntary organization and cooperative participating in a program under this title, or receiving planning assistance funds from the Agency to establish programs under this title; and

(5) representatives from African, Asian and Latin American indigenous non-governmental organizations determined appropriate by the Administrator.

(c) CHAIRPERSON.-The Administrator shall be the chairperson of the Group.

(d) CONSULTATIONS.-In preparing regulations, handbooks, or guidelines implementing this title, or significant revisions thereto, the Administrator shall provide such proposals to the Group for review and comment. The Administrator shall consult and, when appropriate, meet with the Group regarding such proposed regulations, handbooks, guidelines, or revisions thereto prior to the issuance of such.

(e) ADVISORY COMMITTEE ACT.-The Federal Advisory Committee Act (5 U.S.C. App.) shall not apply to the Group.

15 7 U.S.C. 1725.

(f) TERMINATION.-The Group shall terminate on December 31, 1995.

SEC. 206.16 MAXIMUM LEVEL OF EXPENDITURES.

(a) MAXIMUM EXPENDITURES.-Except as provided in subsection (b), programs of assistance shall not be undertaken under this title during any fiscal year if such programs necessitate an appropriation of more than $1,000,000,000 to reimburse the Commodity Credit Corporation for all costs incurred in connection with such programs (including the Corporation's investment in commodities made available).

(b) WAIVER BY PRESIDENT.-The President may waive the limitation contained in subsection (a) if the President determines that such waiver is necessary to undertake programs of assistance to meet urgent humanitarian or emergency needs.

SEC. 207.17 ADMINISTRATION.

(a) PROPOSALS.

(1) TIME FOR DECISION.-Not later than 45 days after the receipt by the Administrator of a proposal submitted—

(A) by a private voluntary organization or cooperative, with the concurrence of the appropriate United States field mission, for commodities; or

(B) by a United States field mission to make commodities available to a private voluntary organization or cooperative:

under this title, the Administrator shall make a decision concerning such proposal.

(2) DENIAL.-If a proposal under paragraph (1) is denied, the response shall specify the reasons for denial and the conditions that must be met for the approval of such proposal.

(b) NOTICE AND COMMENT.-Not later than 30 days prior to the issuance of a final guideline to carry out this title, the Administrator shall

(1) provide notice of the existence of a proposed guideline, and that such guideline is available for review and comment, to private voluntary organizations and cooperatives that participate in programs under this title, and to other interested persons;

(2) make the proposed guideline available, on request, to the organizations, cooperatives, and other persons referred to in paragraph (1); and

(3) take any comments received into consideration prior to the issuance of the final guideline. (c) REGULATIONS.—

(1) IN GENERAL.-The Administrator shall promptly issue all necessary regulations and make revisions to agency guidelines with respect to changes in the operation or implementation of the program established under this title.

(2) REQUIREMENTS.-The Administrator shall develop regulations with the intent of

16 7 U.S.C. 1726.

17 7 U.S.C. 1726a.

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