S 903

112th CONGRESS
1st Session

S. 903

To amend the Trade Act of 1974 to create a Citrus Disease Research and Development Trust Fund to support research on diseases impacting the citrus industry, and for other purposes.

IN THE SENATE OF THE UNITED STATES

May 5, 2011

Mr. NELSON of Florida (for himself, Mrs. FEINSTEIN, and Mrs. BOXER) introduced the following bill; which was read twice and referred to the Committee on Finance


A BILL

To amend the Trade Act of 1974 to create a Citrus Disease Research and Development Trust Fund to support research on diseases impacting the citrus industry, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the `Citrus Disease Research and Development Trust Fund Act of 2011'.

SEC. 2. FINDINGS AND PURPOSES.

    (a) Findings- Congress finds that--

      (1) duties collected on imports of citrus and citrus products have ranged from $50,000,000 to $87,000,000 annually since 2004, and are projected to increase, as United States production declines due to the effects of huanglongbing (also known as `HLB' or `citrus greening disease') and imports increase in response to the shortfall in the United States;

      (2) in cases involving other similarly situated agricultural commodities, notably wool, the Federal Government has chosen to divert a portion of the tariff revenue collected on imported products to support efforts of the domestic industry to address challenges facing the industry;

      (3) citrus and citrus products are a highly nutritious and healthy part of a balanced diet;

      (4) citrus production is an important part of the agricultural economy in Florida, California, Arizona, and Texas;

      (5) in the most recent years preceding the date of enactment of this Act, citrus fruits have been produced on 900,000 acres, yielding 11,000,000 tons of citrus products with a value at the farm of more than $3,200,000,000;

      (6) the commercial citrus sector employs approximately 110,000 people and contributes approximately $13,500,000,000 to the United States economy;

      (7) the United States citrus industry has suffered billions of dollars in damage from disease and pests, both domestic and invasive, over the decade preceding the date of enactment of this Act, particularly from huanglongbing;

      (8) huanglongbing threatens the entire United States citrus industry because the disease kills citrus trees;

      (9) as of the date of enactment of this Act, there are no cost effective or environmentally sound treatments available to suppress or eradicate huanglongbing;

      (10) United States citrus producers working with Federal and State governments have devoted tens of millions of dollars toward research and efforts to combat huanglongbing and other diseases and pests, but more funding is needed to develop and commercialize disease and pest solutions;

      (11) although imports constitute an increasing share of the United States market, importers of citrus products into the United States do not directly fund production research in the United States;

      (12) disease and pest suppression technologies require determinations of safety and solutions must be commercialized before use by citrus producers;

      (13) the complex processes involved in discovery and commercialization of safe and effective pest and disease suppression technologies are expensive and lengthy and the need for the technologies is urgent; and

      (14) research to develop solutions to suppress huanglongbing, or other domestic and invasive pests and diseases will benefit all citrus producers and consumers around the world.

    (b) Purposes- The purposes of this Act are--

      (1) to authorize the establishment of a trust funded by certain tariff revenues to support scientific research, technical assistance, and development activities to combat citrus diseases and pests, both domestic and invasive, harming the United States; and

      (2) to require the President to notify the chairperson and ranking member of the Committee on Finance of the Senate and the Committee on Ways and Means of the House of Representatives before entering into any trade agreement that would decrease the amount of duties collected on imports of citrus products to less than the amount necessary to provide the grants authorized by section 1001(d) of the Trade Act of 1974, as added by section 3(a) of this Act.

    (c) Effect on Other Activities- Nothing in this Act restricts the use of any funds for scientific research and technical activities in the United States.

SEC. 3. CITRUS DISEASE RESEARCH AND DEVELOPMENT TRUST FUND.

    (a) In General- The Trade Act of 1974 (19 U.S.C. 2102 et seq.) is amended by adding at the end the following:

`TITLE X--CITRUS DISEASE RESEARCH AND DEVELOPMENT TRUST FUND

`SEC. 1001. CITRUS DISEASE RESEARCH AND DEVELOPMENT TRUST FUND.

    `(a) Establishment- There is established in the Treasury of the United States a trust fund to be known as the `Citrus Disease Research and Development Trust Fund' (in this section referred to as the `Trust Fund' `'), consisting of such amounts as may be transferred to the Trust Fund under subsection (b)(1) and any amounts that may be credited to the Trust Fund under subsection (d)(2).

    `(b) Transfer of Amounts-

      `(1) IN GENERAL- Subject to paragraph (2), the Secretary of the Treasury shall transfer to the Trust Fund amounts that are attributable to the duties collected on articles that are citrus or citrus products classifiable under chapters 8, 20, 21, 22, and 33 of the Harmonized Tariff Schedule of the United States.

      `(2) LIMITATION- The amount transferred to the Trust Fund under paragraph (1) in any fiscal year may not exceed the lesser of--

        `(A) an amount equal to 1/3 of the amount attributable to the duties received on articles described in paragraph (1); or

        `(B) $30,000,000.

    `(c) Availability of Amounts in Trust Fund-

      `(1) AMOUNTS AVAILABLE UNTIL EXPENDED- Amounts in the Trust Fund shall remain available until expended without further appropriation.

      `(2) AVAILABILITY TO THE CITRUS DISEASE RESEARCH AND DEVELOPMENT BOARD- Amounts in the Trust Fund shall be available to the Citrus Disease Research and Development Board established under section 4 of the Citrus Disease Research and Development Trust Fund Act of 2011 to meet the purposes of that Act.

      `(3) NOTIFICATION OF AMOUNTS TO BE WITHDRAWN- For each fiscal year, the Secretary of Agriculture shall notify the Secretary of the Treasury of the amount to be withdrawn from the Trust Fund for that fiscal year based on the budget for the Citrus Disease Research and Development Board approved for that fiscal year under section 4(c)(4)(D) of the Citrus Disease Research and Development Trust Fund Act of 2011.

    `(d) Investment of Trust Fund-

      `(1) IN GENERAL- The Secretary of the Treasury shall invest such portion of the Trust Fund as is not required to meet current withdrawals in interest-bearing obligations of the United States or in obligations guaranteed as to both principal and interest by the United States. Such obligations may be acquired on original issue at the issue price or by purchase of outstanding obligations at the market price. Any obligation acquired by the Trust Fund may be sold by the Secretary of the Treasury at the market price.

      `(2) INTEREST AND PROCEEDS FROM SALE OR REDEMPTION OF OBLIGATIONS- The interest on, and the proceeds from the sale or redemption of, any obligations held in the Trust Fund shall be credited to and form a part of the Trust Fund.

    `(e) Reports to Congress- Not later than January 15, 2012, and each year thereafter until the year after the termination of the Trust Fund, the Secretary of the Treasury, in consultation with the Secretary of Agriculture, shall submit to Congress a report on the financial condition and the results of the operations of the Trust Fund that includes--

      `(1) the amount of funds made available to the Citrus Disease Research and Development Board under subsection (c) during the preceding fiscal year and a description of the ways in which the Board used those funds; and

      `(2) an assessment of the financial condition and the operations of the Trust Fund for the current fiscal year.

    `(f) Remission of Surplus Funds- After receiving a report of the Citrus Disease Research and Development Board under section 4(c)(4)(E) of the Citrus Disease Research and Development Trust Fund Act of 2011 for a fiscal year, the Secretary of the Treasury may remit to the general fund of the Treasury such amounts as the Board reported to be in excess of the amounts necessary to meet the purposes of the Citrus Disease Research and Development Trust Fund Act of 2011.

    `(g) Sunset Provision- The Trust Fund shall terminate on December 31 of the fifth calendar year that begins after the date of the enactment of this Act and all amounts in the Trust Fund on December 31 of that fifth calendar year shall be transferred to the general fund of the Treasury.

`SEC. 1002. REPORTS REQUIRED BEFORE ENTERING INTO CERTAIN TRADE AGREEMENTS.

    `The President shall notify the chairperson and ranking member of the Committee on Finance of the Senate and the Committee on Ways and Means of the House of Representatives not later than 90 days before entering into a trade agreement if the President determines that entering into the trade agreement could result--

      `(1) in a decrease in the amount of duties collected on articles that are citrus or citrus products classifiable under chapters 8, 20, 21, 22, and 33 of the Harmonized Tariff Schedule of the United States; and

      `(2) in a decrease in the amount of funds being transferred into the Citrus Disease Research and Development Trust Fund under section 1001 so that amounts available in the Trust Fund are insufficient to meet the purposes of the Citrus Disease Research and Development Trust Fund Act of 2011.'.

    (b) Clerical Amendment- The table of contents for the Trade Act of 1974 is amended by adding at the end the following:

`TITLE X--CITRUS DISEASE RESEARCH AND DEVELOPMENT TRUST FUND

      `Sec. 1001. Citrus Disease Research and Development Trust Fund.

      `Sec. 1002. Reports required before entering into certain trade agreements.'.

SEC. 4. CITRUS DISEASE RESEARCH AND DEVELOPMENT BOARD.

    (a) Purpose- The purpose of this section is to establish an orderly procedure for the development of an effective and coordinated program of research and product development relating to--

      (1) scientific research concerning diseases and pests, both domestic and invasive, afflicting the citrus industry; and

      (2) support for the dissemination and commercialization of relevant information, techniques, and technologies discovered pursuant to research funded through the Citrus Disease Research and Development Trust Fund established under section 1001 of the Trade Act of 1974, as added by section 3(a) of this Act, or through other research projects intended to solve problems caused by citrus production diseases and invasive pests.

    (b) Definitions- In this section:

      (1) BOARD- The term `Board' means the Citrus Disease Research and Development Board established under this section.

      (2) CITRUS-

        (A) IN GENERAL- The term `citrus' means edible fruit of the family Rutaceae, commonly called `citrus'.

        (B) INCLUSION- The term `citrus' includes all citrus hybrids and products of citrus hybrids that are produced for commercial purposes in the United States.

      (3) DEPARTMENT- The term `Department' means the Department of Agriculture.

      (4) PERSON- The term `person' means any individual, group of individuals, firm, partnership, corporation, joint stock company, association, cooperative, or other legal entity.

      (5) PRODUCER- The term `producer' means any person that is engaged in the domestic production and commercial sale of citrus in the United States.

      (6) PROGRAM- The term `program' means the citrus research and development program authorized under this section.

      (7) SECRETARY- The term `Secretary' means the Secretary of Agriculture.

      (8) TRUST FUND- The term `Trust Fund' means the Citrus Disease Research and Development Trust Fund established under section 1001 of the Trade Act of 1974, as added by section 3(a) of this Act.

    (c) Implementation-

      (1) REGULATIONS- Not later than 180 days after the date of enactment of this Act, the Secretary shall promulgate regulations to carry out this section.

      (2) CITRUS BOARD-

        (A) ESTABLISHMENT AND MEMBERSHIP-

          (i) ESTABLISHMENT- The Citrus Disease Research and Development Board shall consist of 9 members.

          (ii) MEMBERSHIP- The members of the Board shall be appointed by the Secretary from nominations submitted in accordance with this paragraph.

        (B) DISTRIBUTION OF APPOINTMENTS- The membership of the Board shall consist of--

          (i) 5 members who are domestic producers of citrus in Florida;

          (ii) 3 members who are domestic producers of citrus in Arizona or California; and

          (iii) 1 member who is a domestic producer of citrus in Texas.

        (C) NOMINATION PROCESS-

          (i) IN GENERAL- Two nominees shall be submitted for each appointment to the Board.

          (ii) PROCESS- Nominations for each appointment of a producer from a State identified in subparagraph (B) shall be made by the domestic producers in that State through a process that uses nominations from any organization--

            (I) the majority of the membership of which is composed of citrus producers; and

            (II) that is in existence on the date of enactment of this Act.

          (iii) FAILURE TO NOMINATE- In any case in which producer organizations fail to nominate individuals for an appointment to the Board, the Secretary may appoint an individual to fill the vacancy on a basis provided in the regulations promulgated by the Secretary.

        (D) ALTERNATES-

          (i) IN GENERAL- Subject to clause (ii), the regulations promulgated by the Secretary shall provide for the selection of alternate members of the Board by the Secretary for the purpose of serving the remainder of terms vacated by a departing Board member.

          (ii) REQUIREMENTS- Regulations described in clause (i) shall require that--

            (I) each alternate member is chosen from nominations submitted by the organizations referred to in subparagraph (C)(ii); and

            (II) each alternate member appointed by the Secretary is a citrus producer from the same State as the Board member being replaced.

        (E) TERMS-

          (i) IN GENERAL- Except as provided in clause (ii), each term of appointment to the Board shall be for 5 years.

          (ii) INITIAL APPOINTMENTS- In making initial appointments to the Board, the Secretary shall appoint 1/3 of the members to terms of 1, 3, and 5 years, respectively.

        (F) DISQUALIFICATION FROM BOARD SERVICE- If a member or alternate of the Board who was appointed as a domestic producer ceases to be a producer in the State from which the member was appointed, or fails to fulfill the duties of the member according to the rules established by the Board under paragraph (3)(C), the member or alternate shall be disqualified from serving on the Board.

        (G) MANNER OF FILLING VACANCY- A vacancy arising as a result of disqualification or any other reason before the expiration of the term of office of an incumbent member or alternate of the Board shall be filled in a manner provided in the regulations promulgated by the Secretary.

        (H) COMPENSATION-

          (i) IN GENERAL- The members of the Board shall serve without compensation, but shall be reimbursed for the reasonable expenses incurred in performing duties as members or alternates of the Board.

          (ii) LIMITATION- Reimbursement described in clause (i) may not exceed the amount that would be authorized under section 5703 of title 5, United States Code, for the payment of expenses and allowances for individuals intermittently employed in Federal Government service.

      (3) GENERAL RESPONSIBILITIES OF THE BOARD-

        (A) IN GENERAL- The regulations promulgated by the Secretary shall define the general responsibilities of the Board, which shall include the responsibilities--

          (i) to administer a citrus research and development program in accordance with the program regulations promulgated by the Secretary;

          (ii) to meet, organize, and select from among the members of the Board a chairperson, other officers, and committees and subcommittees, as the Board determines to be appropriate;

          (iii) to adopt and amend rules and regulations governing the conduct of the activities of the Board and the performance of the duties of the Board;

          (iv) in accordance with subparagraph (B), to employ such persons as the Board determines are necessary, and set the compensation and define the duties of the persons;

          (v)(I) to develop budgets for the implementation of the program and submit the budgets to the Secretary for approval under paragraph (4); and

          (II) to propose and develop (or receive and evaluate), approve, and submit to the Secretary for notification under paragraph (4) plans or projects for citrus research, including with any private or public research entities the Board determines to be consistent with the purposes of this section;

          (vi)(I) to implement plans and projects for citrus research in accordance with paragraph (4); or

          (II) to contract or enter into agreements with appropriate persons to implement the plans and projects under paragraph (5), and pay the costs of the implementation, or contracts and agreement, with funds received under this Act;

          (vii) to evaluate ongoing and completed plans and projects for citrus research;

          (viii) to engage in regular consultation and collaboration with the Department and other institutional, governmental, and private actors conducting scientific research into the causes or treatments of citrus diseases and pests, both domestic and invasive, so as to--

            (I) maximize the effectiveness of the activities;

            (II) hasten the development of useful treatments; and

            (III) avoid duplicative and wasteful expenditures;

          (ix) to receive, investigate, and report to the Secretary complaints relating to the activities carried out by the Board; and

          (x) to provide the Secretary such information as the Secretary may require.

        (B) EMPLOYMENT AUTHORITY-

          (i) IN GENERAL- The Board may--

            (I) employ such persons as the Board determines are necessary, and set the compensation and define the duties of the persons, without regard to the provisions of title 5, United States Code, governing appointments in the competitive service; and

            (II) pay the persons without regard to the provisions of chapter 51, and subchapter III of chapter 53, title 5, United States Code, relating to classification and General Schedule pay rates.

          (ii) STATUS OF EMPLOYEES- Employees described in clause (i) shall--

            (I) be Federal employees as defined in section 2105 of title 5, United States Code; and

            (II) be subject to all rights and obligations applicable to Federal employees, subject to the approval of the Board.

      (4) BUDGETS; PLANS AND PROJECTS-

        (A) SUBMISSION OF BUDGETS; PLANS AND PROJECTS-

          (i) SUBMISSION OF BUDGETS- The Board shall submit to the Secretary for approval, budgets, on a fiscal year basis, showing the anticipated expenses and disbursements of the Board in the implementation of the program, including the projected costs of citrus research.

          (ii) SUBMISSION OF PLANS AND PROJECTS- The Board shall notify the Secretary of proposed plans or projects for citrus research, as described under subparagraph (B).

          (iii) AFFIRMATIVE SUPPORT REQUIRED- A budget may not be submitted by the Board for recommendation to the Secretary, and a plan or project may not be submitted by the Board for notification to the Secretary, without the affirmative support of at least 7 members of the Board.

        (B) PLANS AND PROJECTS- The Board shall be responsible for--

          (i) the establishment, implementation, administration, and evaluation of plans and projects for scientific research described in subsection (a);

          (ii) the dissemination of information, techniques, and technologies described in subsection (a) and acquired through the plans and projects; and

          (iii) the disbursement of such funds as are necessary to carry out this subparagraph.

        (C) INTELLECTUAL PROPERTY RIGHTS-

          (i) IN GENERAL- An agreement for the allocation of any intellectual property rights that may arise from research undertaken pursuant to this section or that relate to the commercialization of technologies that further the purposes of this Act is subject to the invention rights of the Small Business Patent Procedure Act of 1980 (Public Law 96-517), as amended (35 U.S.C. 200-212) (commonly referred to as the `Bayh-Dole Act'), and its implementing regulations (37 C.F.R. 401), as further broadened and interpreted in the Presidential Memorandum to the Heads of Executive Departments and Agencies on Government Patent Policy of February 18, 1983, and Executive Orders 12591 and 12618.

          (ii) WAIVER- The Board may waive applicability of clause (i) for specific projects if the Board determines the waiver to be consistent with the purposes of this Act.

        (D) APPROVAL BY SECRETARY-

          (i) IN GENERAL- A budget for citrus research may not be implemented prior to approval of the budget by the Secretary.

          (ii) PRIMARY CONSIDERATION- In evaluating the proposed budget, the Secretary shall give primary consideration to whether the Board fully complied with the purposes and requirements of this Act.

          (iii) NOTIFICATION- Not later than 45 days after receipt of a budget under this section, the Secretary shall notify the Board as to whether the Secretary approves or disapproves the budget.

          (iv) REQUIREMENT TO PROPOSE ALTERNATIVE BUDGET- If the Secretary disapproves a budget under clause (iii), the Secretary shall collaborate with the Board to develop an alternative budget during the 45-day period beginning on the date of the disapproval.

          (v) FAILURE TO RECOMMEND A BUDGET- If the Board fails to recommend a budget, the Secretary shall establish a budget for the Board.

        (E) RECOMMENDATION OF EXCESS FUNDS- As soon as practicable after the end of the second fiscal year after the establishment of the Board, and every fiscal year thereafter, the Board shall submit to the Secretary and the Secretary of the Treasury a report that contains--

          (i) an assessment of whether the amounts in the Trust Fund are in excess of the amounts necessary to meet the purposes of this Act; and

          (ii) a recommendation of an amount that may be remitted to the general fund of the Treasury without risk of inhibiting the purposes of this Act.

      (5) CONTRACTS AND AGREEMENTS-

        (A) RESEARCH PLANS AND PROJECTS-

          (i) IN GENERAL- To ensure the efficient use of funds, the Board may enter into contracts or agreements with public or private entities for the implementation of a plan or project for citrus research.

          (ii) REQUIREMENTS- Any contract or agreement entered into under this subparagraph shall provide that the contracting or agreeing party shall --

            (I) develop and submit to the Board a plan or project and a budget that includes the estimated costs to be incurred for the plan or project;

            (II) keep accurate records of all transactions of the party;

            (III) account for funds received and expended;

            (IV) make periodic reports to the Board of activities conducted; and

            (V) make such other reports as the Board or the Secretary shall require.

        (B) OTHER CONTRACTS AND AGREEMENTS-

          (i) IN GENERAL- The Board may enter into a contract or agreement for administrative services.

          (ii) TERMS- Any contract or agreement entered into under clause (i) shall include terms comparable to the terms described in subparagraph (A)(ii).

      (6) BOOKS AND RECORDS OF BOARD-

        (A) IN GENERAL- The Board shall--

          (i) maintain such books and records as the Secretary may require, to be made available to the Secretary for inspection and audit;

          (ii) prepare and submit to the Secretary such periodic reports as the Secretary may require; and

          (iii) account for the receipt and disbursement of all funds entrusted to the Board.

        (B) AUDITS-

          (i) IN GENERAL- The Board shall have the books and records of the Board audited by an independent auditor at the end of each fiscal year.

          (ii) REPORT- The Board shall submit to the Secretary a report of each audit under clause (i).

      (7) CONTROL OF ADMINISTRATIVE COSTS-

        (A) SYSTEM OF COST CONTROLS- The Board shall, as soon as practicable and after consultation with the Secretary and other appropriate persons, implement a system of cost controls based on the applicable Federal cost principles and, to the maximum extent practicable--

          (i) ensure that the costs incurred by the Board in administering the citrus research contracts and agreements authorized under paragraph (5) in any fiscal year do not exceed the projected level of funds disbursed to the Board for that fiscal year; and

          (ii) cover the minimum administrative activities and personnel needed--

            (I) to properly administer the funds received from the Secretary of the Treasury; and

            (II) to conduct, supervise, and evaluate plans and projects under the program.

        (B) USE OF EXISTING PERSONNEL AND FACILITIES- The Board shall use, to the maximum extent practicable, the resources, staffs, and facilities of organizations in existence as of the date of enactment of this Act, in accordance with paragraph (5)(A)(i).

      (8) USE OF FUNDS- Amounts available in the Trust Fund shall be used by the Board--

        (A) to pay the allowable costs incurred for contracts and agreements under paragraph (5); and

        (B) to cover the administrative costs incurred by the Secretary in accordance with paragraph (9).

      (9) REIMBURSEMENT OF SECRETARY EXPENSES- The Board shall reimburse the Secretary from amounts available in the Trust Fund for administrative costs incurred by the Secretary for work of up to 2 employee years.

      (10) PROHIBITION ON USE OF FUNDS TO INFLUENCE GOVERNMENTAL ACTION-

        (A) IN GENERAL- Except as otherwise provided in subparagraph (B), the Board may not use any of the funds otherwise available to the Board in any manner for the purpose of influencing legislation or government action or policy.

        (B) EXCEPTION- Subparagraph (A) shall not apply to the development or recommendation of a citrus research plan or project.

      (11) LIABILITY AND STATUS OF BOARD MEMBERS- Board members shall not be considered Federal employees by virtue of membership on the Board, except for purposes of--

        (A) chapter 171 of title 28, United States Code (commonly known as the `Federal Tort Claims Act');

        (B) the Ethics in Government Act of 1978 (5 U.S.C. App.); and

        (C) chapter 11 of title 18, United States Code.

      (12) CONSULTATIONS WITH SCIENTIFIC EXPERTS-

        (A) IN GENERAL- The Board shall seek advice from and consult with experts to assist in the development of research plans and projects consistent with the purposes of this section.

        (B) SPECIAL COMMITTEES-

          (i) IN GENERAL- For purposes described in subparagraph (A), the regulations promulgated by the Secretary shall authorize the appointment of special committees by the Board composed of persons other than Board members.

          (ii) CONSULTATION- A committee appointed under clause (i) shall consult directly with the Board.

        (C) COMPENSATION- The Board shall be authorized to provide compensation to the experts and persons described in subparagraphs (A) and (B) as the Board considers appropriate.

    (d) Effect of Section-

      (1) IN GENERAL- This section--

        (A) does not provide for control of production or otherwise limit the right of individual citrus growers, handlers, and importers to produce, handle, or import citrus; and

        (B) is intended to treat all persons producing, handling, and importing citrus fairly and to implement the program in an equitable manner.

      (2) OTHER PROGRAMS- Nothing in this section preempts or supersedes any other program relating to citrus promotion, research, industry information, or consumer information organized and operated under any Federal or State law.

      (3) RELATIONSHIP BETWEEN SECRETARY AND BOARD-

        (A) IN GENERAL- In carrying out the responsibilities of the Secretary to oversee the operation of the program under this section, no official or employee of the Department may make decisions as to the best use of funds or shape the program to reflect the personal preference of the official.

        (B) AUTHORITY OF THE BOARD- The Board shall retain sole authority to structure the projects and activities described in this section within the limits established by this section.

        (C) SECRETARIAL RESPONSIBILITIES- The Secretary--

          (i) shall ensure that any programs carried out under this Act operate in a manner consistent with this section and other applicable law; and

          (ii) shall promote the most efficient use of funds.

END