,i #aaith ,,congress #ast ,session ,h4 ,r4 #debi ,,in ,,the ,,house ,,of ,,representatives ,july #ag1 #bjbe,mr4 ,david ,scott of ,georgia 7for himself1 ,mr4 ,jackson of ,illinois1 ,ms4 ,adams1 ,mr4 ,bishop1 ,ms4 ,brown1 ,mr4 ,carson1 ,mr4 ,carter of ,louisiana1 ,mr4 ,cohen1 ,mr4 ,fields1 ,mr4 ,figures1 ,mr4 ,johnson of ,georgia1 ,ms4 ,kelly of ,illinois1 ,ms4 ,mc,clellan1 ,ms4 ,sewell1 ,mr4 ,soto1 ,ms4 ,strickland1 ,mr4 ,thanedar1 ,ms4 ,tokuda1 ,ms4 ,waters1 ,ms4 ,williams of ,georgia1 ,ms4 ,wilson of ,florida1 and ,mrs4 ,watson ,coleman7 introduced the following bill2 which was referred to the ,committee on ,agriculture1 and in addition to the ,committee on ,ways and ,means1 for a period to be subsequently determined by the ,speaker1 in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned ,a ,,bill ,to increase market access for ,black farmers and socially disadvantaged farmers and ranchers1 to ensure civil rights accountability1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,black ,farmers and ,socially ,disadvantaged ,farmers ,increased ,market ,share ,act4 #b4 ,food hub grants to increase market access for socially disadvantaged farmers and ranchers 7a7 ,definitions ,in this section3 7#a7 ,agricultural food product ,the term agricultural food product means a raw1 cooked1 or a processed edible substance1 beverage1 or ingredient produced and otherwise prepared for sale in the ,united ,states 7including any insular area 7as defined in section #adjd of the ,national ,agricultural1 ,research1 ,extension1 and ,teaching ,policy ,act of #aigg 7#g ,u4,s4,c4 #cajc7771 derived from one or more agricultural commodities of ,united ,states origin1 and used or intended for use or for sale in whole or in part for human consumption4 7#b7 ,donated food ,the term donated food has the meaning given the term in section #bej4b of title #g of the ,code of ,federal ,regulations 7or any successor regulation74 7#c7 ,eligible entity ,the term eligible entity means-- 7,a7 an entity formed by two or more agricultural producers1 not less than half of whom are members of a socially disadvantaged group2 or 7,b7 a non-profit organization or ,tribal organization with demonstrated experience working with socially disadvantaged farmers or ranchers4 7#d7 ,eligible partner ,the term eligible partner means a non-profit organization1 a ,state cooperative extension service or a college or university 7as such terms are defined in section #adjd of the ,national ,agricultural ,research1 ,extension1 and ,teaching ,policy ,act of #aigg 7#g ,u4,s4,c4 #cajc771 ,tribal organization1 or other ,state or local government entities with demonstrated experience in providing assistance such as grants management1 technical assistance1 and business plan development1 to agricultural producers4 7#e7 ,food hub ,the term food hub means a business or organization that actively manages the aggregation1 distribution1 and marketing of source-identified agricultural food products from producers for wholesale1 retail1 or institutional markets4 7#f7 ,secretary ,the term ,secretary means the ,secretary of ,agriculture4 7#g7 ,socially disadvantaged farmer or rancher ,the term socially disadvantaged farmer or rancher has the meaning given the term in section #beja7;a7 of the ,food1 ,agriculture1 ,conservation1 and ,trade ,act of #aiij 7#g ,u4,s4,c4 #bbgi7;a774 7#h7 ,socially disadvantaged group ,the term socially disadvantaged group has the meaning given the term in section #beja7;a7 of the ,food1 ,agriculture1 ,conservation1 and ,trade ,act of #aiij 7#g ,u4,s4,c4 #bbgi7;a774 7#i7 ,tribal organization ,the term ,tribal organization has the meaning given the term in section #c of the ,food and ,nutrition ,act of #bjjh 7#g ,u4,s4,c4 #bjab74 7b7 ,grants ,to increase market access 7#a7 ,in general ,the ,secretary shall establish a program to make grants on a competitive basis to eligible entities to support new or expanding food hubs designed to increase market access for socially disadvantaged farmers and ranchers1 but may also increase market access for other farmers and ranchers4 7#b7 ,use of funds ,an eligible entity selected to receive a grants under this subsection may use grants funds-- 7,a7 to purchase and develop land1 buildings1 and associated infrastructure for commercial or industrial properties1 including expansion or modernization1 for use in processing1 distributing1 aggregating1 storing1 transporting1 or marketing agricultural food products2 7,b7 to construct or equip facilities for use in processing1 distributing1 aggregating1 storing1 transporting1 or marketing agricultural food products2 7,c7 to purchase machinery and equipment for use in processing1 distributing1 aggregating1 storing1 transporting1 or marketing agricultural food products2 7,d7 for general operating expenses directly related to a food hub1 including planning and development related to the establishment or expansion of any food hub2 7,e7 to provide marketing services for agricultural food products1 including providing platforms 7such as electronic or web-based platforms7 for sales1 inventory1 and aggregation2 and 7,f7 to conduct other activities supporting the development or expansion of a food hub1 as determined by the ,secretary4 7#c7 ,application 7,a7 ,in general ,an eligible entity seeking a grant under this subsection shall submit to the ,secretary an application that contains-- 7i7 a description of the activities the eligible entity will carry out to support one or more new or existing food hubs1 including a plan for each such food hub to process1 distribute1 store1 or market agricultural food products for wholesale1 retail1 or institutional markets2 7ii7 a description of the ways in which each such food hub that the eligible entity is proposing to establish or expand is designed to increase market access for socially disadvantaged farmers or ranchers2 7iii7 except as provided in subparagraph 7,b71 a description of the eligible entity's demonstrated competency to develop and manage each such food hub1 provide fiscal accountability1 collect data1 and prepare reports and other necessary documentation2 and 7iv7 any other information1 as determined by the ,secretary4 7,b7 ,requirement to include eligible partners ,an eligible entity that does not have one or more of the demonstrated competencies described in clause 7iii7 of subparagraph 7,a7 shall submit to the ,secretary in its application-- 7i7 a list of one or more eligible partners such eligible entity is partnering with2 7ii7 the responsibilities of each eligible partner in supporting such eligible entity2 and 7iii7 a description of the demonstrated competencies of the eligible partner or partners in performing such responsibilities4 7,c7 ,eligible entities serving as eligible partners ,an eligible entity specified in subparagraph 7,b7 of subsection 7a77#c7 seeking a grant under this section may serve as an eligible partner for other eligible entities in one or more grant applications under this subsection4 7#d7 ,priority ,in making grants under this subsection1 the ,secretary may give priority to grant applications for food hubs that-- 7,a7 benefit underserved communities1 as defined in section #caj;,b7g77#i77;,a77ii7 of the ,consolidated ,farm and ,rural ,development ,act 7#g ,u4,s4,c4 #aicb7;g77#i77;,a77ii772 7,b7 aggregate1 distribute1 and market agricultural food products that meet the standards for donated foods1 as determined by the ,secretary2 or 7,c7 have not been awarded a ,department of ,agriculture grant1 including a grant under section #baj;,a of the ,agricultural ,marketing ,act of #aidf 7#g ,u4,s4,c4 #afbg;c71 in the preceding or current fiscal year4 7#e7 ,maximum grant term ,the term of a grant under this subsection may not exceed #e years4 7#f7 ,no matching funds ,an eligible entity receiving a grant under this section shall not be required to provide non-,federal matching funds with respect to such grant4 7c7 ,prioritizing ,purchases for ,,usda ,domestic ,food ,assistance ,programs 7#a7 ,in general ,the ,secretary shall establish a process-- 7,a7 to prioritize the purchase of agricultural food products from socially disadvantaged farmers and ranchers1 including from food hubs developed or expanded under this section1 for use in ,department of ,agriculture programs that distribute agricultural food products within the ,united ,states 7including any insular area 7as defined in section #adjd of the ,national ,agricultural1 ,research1 ,extension1 and ,teaching ,policy ,act of #aigg 7#g ,u4,s4,c4 #cajc7772 and 7,b7 that is designed to account for barriers to market entry faced by socially disadvantaged farmers and ranchers while maintaining the integrity of the purchasing process established under this subsection1 including ensuring that any entity that is suspended or debarred from participation in any ,federal program is not eligible to participate in the purchasing process established under this subsection4 7#b7 ,waivers 7,a7 ,in general ,in establishing the process described in paragraph 7#a71 the ,secretary may provide for the waiver of the full and open competition procedures for the award of ,federal contracts1 section #ccbd of title #ca1 ,united ,states ,code1 and section #gbe of the ,agriculture1 ,rural ,development1 ,food and ,drug ,administration1 and ,related ,agencies ,appropriations ,act1 #bjja 7#g ,u4,s4,c4 #bbji;f71 if the ,secretary identifies requirements under such sections and procedures as presenting barriers to market entry for socially disadvantaged farmers and ranchers4 7,b7 ,notification ,not later than #aj days after providing for any waiver under subparagraph 7,a71 the ,secretary shall notify the ,committee on ,agriculture of the ,house of ,representatives and the ,committee on ,agriculture1 ,nutrition1 and ,forestry of the ,senate of such waivers and provide a description of how such waivers would address barriers to market entry for socially disadvantaged farmers and ranchers for a particular agricultural food product4 7d7 ,reports ,not later than ,december #ca1 #bjbf1 and each ,december thereafter until the completion of the grants awarded under subsection 7b71 the ,secretary shall make publicly available on the ,department of ,agriculture's website and submit to the ,committee on ,agriculture of the ,house of ,representatives and the ,committee on ,agriculture1 ,nutrition1 and ,forestry of the ,senate1 a report that includes-- 7#a7 a description of the status of each grant awarded under subsection 7b72 7#b7 the number of socially disadvantaged farmers and ranchers participating in the food hub supported by such grant in the previous fiscal year2 7#c7 to the maximum extent practicable1 the amount of agricultural food products produced by socially disadvantaged farmers and ranchers processed1 distributed1 aggregated1 stored1 or marketed by the food hub supported by such grant in the previous fiscal year2 and 7#d7 the total amount of donated food purchased by the ,secretary from food hubs supported with grants awarded under this section in the previous fiscal year4 7e7 ,authorization of appropriations ,there are authorized to be appropriated to carry out subsection 7b7 #ajj1jjj1jjj for fiscal year #bjbf1 to remain available until expended4 #c4 ,agriculture hub credit 7a7 ,in general ,subpart ,d of part ,,iv of subchapter ,a of chapter #a of the ,internal ,revenue ,code of #aihf is amended by adding at the end the following new section3 #de,u4 ,agriculture hub credit 7a7 ,in general ,for purposes of section #ch1 the agriculture hub credit determined under this section for any taxable year is an amount equal to #be percent of the qualified food hub expenses for the taxable year4 7b7 ,qualified food hub expenses ,for purposes of this section1 the term qualified food hub expenses means amounts paid or incurred by the taxpayer during the taxable year-- 7#a7 for agricultural food products from a food hub developed or expanded under section #b of the ,black ,farmers and ,socially ,disadvantaged ,farmers ,increased ,market ,share ,act1 and 7#b7 in accordance with a contract certified by the ,secretary of ,agriculture under section #c7;c7 of the ,black ,farmers and ,socially ,disadvantaged ,farmers ,increased ,market ,share ,act4 7c7 ,food hub ,the term food hub has the meaning given such term in section #b of the ,black ,farmers and ,socially ,disadvantaged ,farmers ,increased ,market ,share ,act4 7d7 ,termination ,this section shall not apply to taxable years beginning after the ,secretary determines the grant program under section #b of the ,black ,farmers and ,socially ,disadvantaged ,farmers ,increased ,market ,share ,act has ended4 4 7b7 ,conforming amendments 7#a7 ,section #ch7;b7 of the ,internal ,revenue ,code of #aihf is amended-- 7,a7 in paragraph 7#cb71 by striking plus at the end1 7,b7 in paragraph 7#cc71 by striking the period at the end and inserting 1 plus1 and 7,c7 by adding at the end the following new paragraph3 7#cd7 the agriculture hub credit determined under section #de,u7a74 4 7#b7 ,the table of sections for subpart ,d of part ,,iv of subchapter ,a of chapter #a of such ,code is amended by adding at the end the following new item3 ,sec4 #de,u4 ,agriculture hub credit4 4 7#c7 ,section #bhj;,c of such ,code is amended by adding at the end the following new subsection3 7i7 ,agriculture hub credit ,any deduction or other credit otherwise allowable with respect to an expense for which a credit is allowed under section #de,u7a7 shall be reduced by the amount of the credit under section #de,u7a7 with respect to such expense4 ,if a credit is allowed under section #de,u7a7 with respect to property of a kind which would properly be included in the inventory of the taxpayer if on hand at the close of the taxable year or property held by the taxpayer primarily for sale to customers in the ordinary course of the trade or business of such taxpayer1 opening inventory or purchases shall be reduced by the amount of the credit so allowed4 4 7c7 ,certification process ,not later than #a year after the date of enactment of this section1 the ,secretary of ,agriculture shall issue regulations to establish a process to certify1 at the request of entities seeking an agriculture hub credit section #de,u of the ,internal ,revenue ,code of #aihf1 as added by subsection 7b71 that a contract under which expenditures referred to in such section #de,u are made-- 7#a7 is not between related parties2 7#b7 is the result of arm's length negotiations2 and 7#c7 meets any other requirements1 as determined by the ,secretary of ,agriculture1 in consultation with the ,secretary of ,treasury4 7d7 ,effective date ,the amendments made by this section shall apply to expenses paid or incurred in taxable years beginning after ,december #ca1 #bjbe4 #d4 ,civil rights accountability for ,,usda employees 7a7 ,in general ,the ,secretary of ,agriculture shall ensure that officials and employees of the ,department of ,agriculture are held accountable in accordance with subsection 7b7 if1 while in the course of their employment or in administering a ,department of ,agriculture program1 such officials and employees are found to have engaged in any discriminatory actions1 retaliatory actions1 harassment1 civil rights violations1 or related misconduct1 including any such actions or misconduct involving any of the following3 7#a7 ,failure to provide a receipt for service in accordance with section #beja;,a7e7 of the ,food1 ,agriculture1 ,conservation or ,trade ,act of #aiij 7#g ,u4,s4,c4 #bbgi-a7;e77 to any current or prospective applicants of or participants in ,department of ,agriculture programs4 7#b7 ,providing an inaccurate receipt for service under such section #beja;,a7e7 to any current or prospective applicants of or participants in ,department of ,agriculture programs4 7#c7 ,failure to provide appropriate information regarding relevant programs and services at the ,department of ,agriculture1 when requested by any current or prospective applicants of or participants in ,department of ,agriculture programs4 7#d7 ,failure to timely process applications or otherwise delaying program services to any current or prospective applicants of or participants in1 ,department of ,agriculture programs4 7b7 ,taking corrective action ,the ,secretary shall ensure that appropriate corrective action is taken with respect to any official or employee of the ,department of ,agriculture who has been found to have engaged in any of the actions1 violations1 or misconduct referred to in subsection 7a7 while in the course of such official's or employee's employment or in administering a ,department of ,agriculture program-- 7#a7 in any administrative finding by the ,department of ,agriculture1 including any final agency decision issued by the ,assistant ,secretary of ,agriculture for ,civil ,rights and any civil rights compliance review or misconduct investigation conducted by the ,department of ,agriculture2 7#b7 in any administrative or judicial proceeding2 7#c7 in any civil rights settlement2 7#d7 in any audit or investigation conducted by the ,office of the ,inspector ,general of the ,department of ,agriculture2 or 7#e7 in any investigation conducted by the ,office of the ,special ,counsel4 7c7 ,corrective action defined ,in this section1 the term corrective action means any action taken to respond to any of the actions1 violations1 or misconduct referred to in subsection 7a7 that-- 7#a7 would enhance civil rights at the ,department of ,agriculture1 including any policy or programmatic changes to prevent similar misconduct from occurring in the future2 and 7#b7 may include disciplinary actions1 including-- 7,a7 removal from ,federal service2 7,b7 suspension without pay2 7,c7 any reduction in grade or pay2 and 7,d7 letter of reprimand4 #e4 ,equitable relief 7a7 ,equitable relief from ineligibility for loans1 payments1 or other benefits ,section #afac of the ,farm ,security and ,rural ,investment ,act of #bjjb 7#g ,u4,s4,c4 #giif7 is amended-- 7#a7 by redesignating subsections 7f7 through 7j7 as subsections 7g7 through 7k71 respectively2 7#b7 by inserting after subsection 7e7 the following3 7f7 ,equitable relief by the ,assistant ,secretary of ,agriculture for ,civil ,rights 7#a7 ,in general ,the ,assistant ,secretary of ,agriculture for ,civil ,rights 7or a designee of the ,secretary in the ,office of the ,assistant ,secretary for ,civil ,rights1 if no ,assistant ,secretary of ,agriculture for ,civil ,rights is confirmed in accordance with section #bah7;b7 of the ,department of ,agriculture ,reorganization ,act of #aiid 7#g ,u4,s4,c4 #fiah7;b777 may grant relief in accordance with subsections 7b7 through 7d7 to a participant who files a civil rights program complaint4 7#b7 ,decisions ,the decision by the ,assistant ,secretary of ,agriculture for ,civil ,rights 7or the designee of the ,secretary7 to grant relief under this subsection shall not require prior approval by any officer or employee of the ,department of ,agriculture4 7#c7 ,other authority ,the authority provided to the ,assistant ,secretary of ,agriculture for ,civil ,rights 7or the designee of the ,secretary7 under this subsection is in addition to any other applicable authority and does not limit other authority provided by law or the ,secretary4 2 7#c7 in subsection 7g71 as so redesignated1 by striking or the ,state ,conservationist and inserting the ,state ,conservationist1 or the ,assistant ,secretary of ,agriculture for ,civil ,rights 7or the designee of the ,secretary72 and 7#d7 in paragraph 7#a7 of subsection 7h71 as so redesignated1 by striking and 7e7 and inserting 7e71 and 7f74 7b7 ,equitable relief for actions taken in good faith ,section #cff of the ,consolidated ,farm and ,rural ,development ,act 7#g ,u4,s4,c4 #bjjh;a7 is amended-- 7#a7 by amending subsection 7b7 to read as follows3 7b7 ,limitation ,the ,secretary may only provide relief to a farmer or rancher under subsection 7a7 if the ,secretary determines that the farmer or rancher-- 7#a7 acting in good faith1 relied on an action of1 or the advice of1 the ,secretary 7including any authorized representative of the ,secretary7 to the detriment of the farming or ranching operation of the farmer or rancher2 or 7#b7 failed to comply fully with the requirements of a program described in subsection 7a77#a71 but made a good faith effort to comply with the requirements4 2 7#b7 by inserting after subsection 7d7 the following3 7e7 ,equitable relief by the assistant secretary of agriculture for civil rights 7#a7 ,in general ,the ,assistant ,secretary of ,agriculture for ,civil ,rights 7or a designee of the ,secretary in the ,office of the ,assistant ,secretary for ,civil ,rights1 if no ,assistant ,secretary of ,agriculture for ,civil ,rights is confirmed in accordance with section #bah7;b7 of the ,department of ,agriculture ,reorganization ,act of #aiid 7#g ,u4,s4,c4 #fiah7;b777 may grant relief in accordance with subsections 7a7 through 7d7 to an individual who files a civil rights program complaint4 7#b7 ,decisions ,the decision by the ,assistant ,secretary of ,agriculture for ,civil ,rights 7or the designee of the ,secretary7 to grant relief under this subsection shall not require prior approval by any officer or employee of the ,department of ,agriculture4 7#c7 ,other authority ,the authority provided to the ,assistant ,secretary of ,agriculture for ,civil ,rights 7or the designee of the ,secretary7 under this subsection is in addition to any other applicable authority and does not limit other authority provided by law or the ,secretary4 2 7#c7 by redesignating subsection 7e7 as subsection 7f72 and 7#d7 in subsection 7f71 as so redesignated1 by striking ,secretary and inserting ,secretary1 or the ,assistant ,secretary of ,agriculture for ,civil ,rights 7or the designee of the ,secretary74 #f4 ,burden of ,proof for ,national ,appeals ,division ,hearings ,section #bgg7;c77#d7 of the ,department of ,agriculture ,reorganization ,act of #aiid 7#g ,u4,s4,c4 #fiig7;c77#d77 is amended to read as follows3 7#d7 ,burden of proof ,the agency shall bear the burden of proving by substantial evidence that the adverse decision of the agency was valid4 4 #g4 ,office of the ,civil ,rights ,ombudsperson ,title ,,iii of the ,federal ,crop ,insurance ,reform and ,department of ,agriculture ,reorganization ,act of #aiid 7#g ,u4,s4,c4 #bbca;b et seq47 is amended by adding at the end the following3 #caj4 ,office of the ,civil ,rights ,ombudsperson 7a7 ,in general ,not later than #abj days after the date of enactment of this section1 the ,secretary shall establish an ,office of the ,civil ,rights ,ombudsperson 7in this section referred to as the ,office7 within the ,department4 ,the ,office shall be independent of ,department agencies and offices4 7b7 ,ombudsperson designation ,the ,secretary shall designate a ,civil ,rights ,ombudsperson 7in this section referred to as the ,ombudsperson7 for the ,office4 ,the ,ombudsperson shall be considered a senior official of the ,department and have a background in civil rights enforcement4 7c7 ,office personnel ,the ,ombudsperson shall appoint such employees as are necessary to perform the functions of the ,office and for the administration of the ,office4 7d7 ,functions ,the functions of the ,office shall be-- 7#a7 to assist producers and other customers of ,department programs in navigating the civil rights review process2 7#b7 to ensure that participants 7as defined in section #bga7 are aware of the appeals process under subtitle ,h of title ,,ii1 including informal hearings under section #bge2 7#c7 to promote awareness of the ,office and its responsibilities among producers and other customers of ,department programs2 and 7#d7 to raise issues and concerns with respect to1 and make recommendations to the ,secretary about1 equitable access or implementation of ,department programs4 7e7 ,access to information 7#a7 ,in general ,subject to paragraph 7#b71 the ,secretary shall establish procedures to provide the ,office access to all departmental records necessary to execute the functions of the ,office under subsection 7d74 7#b7 ,timelines ,the procedures described in paragraph 7#a7 shall include a requirement that requests from the ,office for departmental records shall be fulfilled not later than #fj days after the request is made4 7f7 ,annual report ,beginning not later than #a year after the date of the enactment of this section1 and annually thereafter1 the ,ombudsperson shall prepare and submit to the ,house ,committee on ,agriculture and the ,senate ,committee on ,agriculture1 ,nutrition1 and ,forestry a report on-- 7#a7 the activities carried out by the ,office2 and 7#b7 the findings and recommendations of the ,office with respect to equitable access or implementation of ,department programs4 7g7 ,authorization of appropriations ,there is authorized to be appropriated such sums as are necessary to carry out this section for each of fiscal years #bjbf through #bjbh4 4