An act to provide continuing authority to the Secretary of Agriculture for recovering costs associated with cotton classing services to producers and to authorize the Secretary of Agriculture to invest funds derived from fees for certain voluntary grading and inspection services.

(Measure passed House, amended)

Amends the Cotton Statistics and Estimates Act to extend the Secretary of Agriculture's authority to recover cotton classing costs through FY 1988.

Provides for the collection of classification fees from participating producers or producer-agents. Sets specified fee ceilings based on annual inflation rate increases. Prohibits fee increases if accumulated reserves exceed 20 percent of the previous year's classification costs.

Provides that all submitted cotton samples shall become the property of the United States and shall be sold (exempts such samples from the Federal Property and Administrative Services Act).

Makes such fees and sale proceeds available without fiscal year limitation.

Authorizes the Secretary to invest such fees and sale proceeds in interest-bearing accounts or U.S. debt instruments.

Authorizes appropriations to the extent that such fees and proceeds do not fully cover costs.

Authorizes the Secretary to invest operating balances from inspection and grading services provided under the Agricultural Marketing Act of 1946 in interest-bearing accounts or U.S. debt instruments. Makes such interest or late payment penalties available without fiscal year limitation.