text: 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.
target: USDA Debarment Act of 1993 - Directs the Secretary of Agriculture to carry out debarment procedures against persons materially violating nonprocurement program regulations.
feat_title: USDA Debarment Act of 1993