MARKET PROMOTION PROGRAM.

SEC. 1302. MARKET PROMOTION PROGRAM. (a) Reduction of Funding Level.— Section 211(c)(1) of the Agricultural Trade Act of 1978 (7 U.S.C. 5641(c)(1)) is amended by striking “through 1995” and inserting “through 1993, and not less than $110,000,000 for each of the fiscal years 1994 through 1997”. (b) Secretarial Actions To Achieve Savings.— In order to enable the Secretary of Agriculture to achieve the savings required in the market promotion program established by section 203 of the Agricultural Trade Act of 1978 (7 U.S.C. 5623) as a result of the amendments made by this section: (1) Unfair trade practices.— Paragraph (2) of section 203(c) of such Act is amended to read as follows: “(2) Unfair trade practices.— 107 STAT. 331 “(A) Requirement.— Except as provided in subparagraph (B), the Secretary shall provide assistance under this section only to counter or offset the adverse effects of a subsidy, import quota, or other unfair trade practice of a foreign country. “(B) Exception.— The Secretary shall waive the requirements of this paragraph in the case of activities conducted by small entities operating through the regional State-related organizations”. (2) Guidelines.— The Secretary of Agriculture should implement changes in the market promotion program established by section 203 of such Act, beginning with fiscal year 1994, in order to improve the effectiveness of the program and to meet the following objectives: (A) Priority.— In providing assistance for branded promotion, the Secretary should give priority to small-sized entities. (B) Graduation.— The Secretary should not provide assistance under the program to promote a specific branded product in a single market for more than 5 years unless the Secretary determines that further assistance is necessary in order to meet the objectives of the program. (C) Contribution level.— (i) In general.— The Secretary should require a minimum contribution level of 10 percent from an eligible trade organization that receives assistance for nonbranded promotion. (ii) Increases in contribution level.— The Secretary may increase the contribution level in any subsequent year that an eligible trade organization receives assistance for nonbranded promotion. (D) Additionality.— The Secretary should require each participant in the program to certify that any Federal funds received supplement, but do not supplant, private or third party participant funds or other contributions to program activities. (E) Independent audits.— If as a result of an evaluation or audit of activities of a participant under the program, the Secretary determines that a further review is justified in order to ensure compliance with the requirements of the program, the Secretary should require the participant to contract for an independent audit of the program activities, including activities of any subcontractor. (3) Tobacco.— No funds made available under the market promotion program may be used for activities to develop, maintain, or expand foreign markets for tobacco. (c) Regulations.— Not later than 90 days after the date of enactment of this Act, the Secretary of Agriculture shall issue regulations to implement this section and the amendments made by this section.