SECTION 1. SHORT TITLE.

    This Act may be cited as the ``USDA Accountability and Equity Act 
of 1997''.

SEC. 2. DEFINITIONS.

    As used in this Act:
            (1) The term ``Department'' means the Department of 
        Agriculture.
            (2) The term ``Secretary'' means the Secretary of 
        Agriculture.
            (3) The term ``Assistant Secretary'' means the Assistant 
        Secretary of Agriculture for Administration.
            (4) The term ``socially disadvantaged customer'' means 
        socially disadvantaged farmer or rancher, as defined in section 
        355(e)(2) of the Consolidated Farm and Rural Development Act.

                    TITLE I--PROGRAM ACCOUNTABILITY

SEC. 101. CONVERSION OF COUNTY COMMITTEES.

    Effective 90 days after the date of the enactment of this Act, 
section 8(a)(5)(B) of the Soil Conservation and Domestic Allotment Act 
(16 U.S.C. 590h(a)(5)(B)) is amended--
            (1) by striking clause (ii) and inserting the following:
            ``(ii) Any such committee shall consist of not fewer than 5 
        nor more than 7 members as follows:
                    ``(I) Not fewer than 3 and not more than 5 members 
                shall be fairly representative of the agricultural 
                producers in the county or area, and shall be elected 
                by the agricultural producers in such county or area 
                under such procedures as the Secretary may prescribe.
                    ``(II) two members shall be demographically 
                representative of members of groups of agricultural 
                producers in the county or area who, in the absence of 
                the members, would be underrepresented on the 
                committee, and shall be appointed by the Secretary, 
                based on recommendations made by the underrepresented 
                groups. If the Secretary makes such an appointment from 
                among persons not so recommended, the Secretary shall 
                provide the reasons therefor upon request.''; and
            (2) by adding at the end the following:
            ``(vi) The civil service laws shall apply to all persons 
        performing functions for any county, area, or local committee, 
        subject to such regulations as the Secretary may prescribe 
        taking into account the recommendations made under section 102 
        of the USDA Accountability and Equity Act of 1997.
            ``(vii) The county executive director of a county, area, or 
        local committee, or such other person as the Secretary may 
        select, shall have sole responsibility for making loan 
        determinations under credit programs administered by the 
        Department of Agriculture in the county, area, or locality, 
        subject to the approval of the State director of the 
        Consolidated Farm Service Agency.''.

SEC. 102. CONVERSION OF NONFEDERAL FARM SERVICE AGENCY COUNTY COMMITTEE 
              EMPLOYEES TO FEDERAL CIVIL SERVICE STATUS.

    (a) County and Area Office Staffs.--
            (1) In general.--Subparagraph (E) of section 8(b)(5) of the 
        Soil Conservation and Domestic Allotment Act (16 U.S.C. 
        590h(b)(5)(E)) is amended to read as follows:
            ``(E) Regulations and county and area office employees.--
        (i)(I) The Secretary shall issue such regulations as the 
        Secretary considers necessary relating to the selection of 
        members to and the exercise of the functions of the respective 
        committees, and to the administration through such committees 
        of the programs described in subparagraph (D).
            ``(II) Regulations governing payments or grants under this 
        subsection, whenever practicable, shall be classified on the 
        basis of being related to a soil-depleting practice or a soil-
        building practice.
            ``(ii) Employees performing services for county and area 
        committees may be appointed only by the Secretary or the 
        designee of the Secretary.''.
            (2) Conversion of permanent county and area office 
        employees.--Subject to regulations of the Office of Personnel 
        Management, employees of county committees employed pursuant to 
        section 8(b) of the Soil Conservation and Domestic Allotment 
        Act (16 U.S.C. 590h(b)) who, on the effective date of this 
        section, are so employed under an appointment not limited to 1 
        year or less shall be converted to Federal civil service 
        appointments, as follows:
                    (A) Employees who have completed 3 years of service 
                shall be given career civil service appointments.
                    (B) Employees who have completed less than 3 years 
                of service shall be given career-conditional civil 
                service appointments.
            (3) Conversion of temporary county and area office 
        employees.--Subject to regulations of the Office of Personnel 
        Management, employees of county committees employed pursuant to 
        section 8(b) of the Soil Conservation and Domestic Allotment 
        Act (16 U.S.C. 590h(b)) who, on the effective date of this 
        section, are so employed under an appointment limited to 1 year 
        or less shall, subject to the discretion of the Secretary, be 
        converted to temporary Federal civil service appointments.
    (b) Other Amendments.--
            (1) Department of agriculture reorganization act of 1994.--
        Section 226 of the Department of Agriculture Reorganization Act 
        of 1994 (7 U.S.C. 6932) is amended--
                    (A) by striking subsection (e);
                    (B) in subsection (g), by striking ``(f)'' and 
                inserting ``(e)''; and
                    (C) by redesignating subsections (f) through (h) as 
                subsections (e) through (g), respectively.
            (2) Title 5 of the united states code.--Title 5, United 
        States Code, is amended--
                    (A) in sections 3502(a)(C)(i) and 6312(a)(1) by 
                striking ``Act;'' and inserting ``Act, but only if that 
                individual was first employed as an employee of such a 
                county committee or of such a committee or association 
                of producers before the effective date of section 102 
                of the USDA Accountability and Equity Act of 1997;''; 
                and
                    (B) in sections 5306(a)(1)(C), 8331(1)(F), 
                8701(a)(8), and 8901(1)(G) by inserting ``first'' 
                before ``employed'' and by striking ``16;'' and 
                inserting ``16 before the effective date of section 102 
                of the USDA Accountability and Equity Act of 1997;''.
    (c) Effective Date.--This section and the amendments made by this 
section shall take effect 180 days after the date of the enactment of 
this Act.

                        TITLE II--PROGRAM EQUITY

SEC. 201. ACCESS TO CREDIT.

    Section 373(a) of the Consolidated Farm and Rural Development Act 
(7 U.S.C. 2008h(a)) is amended to read as follows:
    ``(a) Delinquent Borrowers Prohibited From Obtaining Direct 
Operating Loans; Exceptions.--
            ``(1) Prohibition.--Except as provided in paragraph (2), 
        the Secretary may not make a direct operating loan under 
        subtitle B to a borrower who is delinquent on any loan made or 
        guaranteed under this title.
            ``(2) Exceptions.--
                    ``(A) In general.--Paragraph (1) shall not apply to 
                a borrower if--
                            ``(i) the borrower was granted a principal 
                        or interest write-down under section 353 with 
                        respect to the loan on which the borrower is 
                        delinquent, and the delinquency is a result of 
                        conditions the borrower could not control;
                            ``(ii) there are no unsatisfied judgments 
                        against the borrower;
                            ``(iii) 2 years has passed since a 
                        principal or interest write-down was granted 
                        under section 353 to the borrower;
                            ``(iv) the Secretary determines that the 
                        borrower has acted in a fiscally responsible 
                        manner for 2 years before application for the 
                        direct operating loan; or
                            ``(v) the farm operations of the borrower 
                        are pending liquidation.
                    ``(B) Requirements applicable to loans to 
                delinquent borrowers.--Any direct operating loan to a 
                borrower to whom a paragraph of the preceding sentence 
                applies shall be made subject to such requirements and 
                conditions as may be necessary to ensure that the 
                borrower does not become delinquent on the loan.''.

SEC. 202. LEASE BACK, BUY BACK OPPORTUNITIES.

    Out of any money in the Treasury of the United States not otherwise 
appropriated, there are appropriated to the Secretary of Agriculture 
$10,000,000 for each of fiscal years 1998 and 1999 for leases or 
contracts to sell real property acquired under the Consolidated Farm 
and Rural Development Act to beginning farmers or ranchers (as defined 
under section 343(a)(8) of such Act) whose operations were shown by a 
farm and home plan to cash flow during the 3 years before April 4, 
1996.

SEC. 203. DEBT WRITE-DOWNS NOT TREATED AS INCOME FOR TAX PURPOSES.

    Section 353(d) of the Consolidated Farm and Rural Development Act 
(7 U.S.C. 2001(d)) is amended by adding at the end the following:
            ``(3) Tax treatment of write-downs.--No amount shall be 
        includible in gross income for purposes of the Internal Revenue 
        Code of 1986 by reason of any discharge of indebtedness under 
        this section.''.

SEC. 204. ACCESSIBILITY OF HOUSING LOANS.

    Section 502(a) of the Housing Act of 1949 (42 U.S.C. 1472(a)) is 
amended by adding after paragraph (3) the following new paragraph:
    ``(4) The Secretary may not deny eligibility to any applicant for a 
loan under this section on the basis of the lack of a credit history or 
a poor credit history, if the applicant demonstrates, in accordance 
with such requirements as the Secretary may prescribe, that the 
applicant has been able, for a reasonable period of time, to live in a 
financially independent manner and pay rent and utility bills in a 
timely manner.''.

SEC. 205. EXPANSION OF THE ENVIRONMENTAL QUALITY INCENTIVES PROGRAM FOR 
              SOCIALLY DISADVANTAGED AGRICULTURAL PRODUCERS.

    (a) In General.--Section 1241(b) of the Food Security Act of 1985 
(16 U.S.C. 3841(b)) is amended--
            (1) in paragraph (1), by striking ``$200,000,000'' and 
        inserting ``$300,000,000'';
            (2) in paragraph (2), by striking ``50 percent'' and 
        inserting ``\1/3\''; and
            (3) by adding at the end the following:
            ``(3) Assistance to socially disadvantaged agricultural 
        producers.--For each of fiscal years 1998 through 2002, \1/3\ 
        of the funding available for technical assistance, cost-share 
        payments, incentives payments, and education under the 
        environmental quality incentives program under chapter 4 of 
        subtitle D shall be targeted to increase assistance to socially 
        disadvantaged farmers and ranchers (as defined in section 
        355(e)(2) of the Consolidated Farm and Rural Development 
        Act).''.
    (b) Same-Year Payments for Contracts in the Environmental Quality 
Incentives Program.--Section 1240G of such Act (16 U.S.C. 3839aa-7) is 
amended by striking subsection (c).

SEC. 206. PROGRAM EQUITY FUNDING.

    Section 1447(b) of the National Agricultural Research, Extension, 
and Teaching Policy Act of 1977 (7 U.S.C. 3222b(b)) is amended to read 
as follows:
    ``(b) Appropriation.--
            ``(1) In general.--Out of any money in the Treasury of the 
        United States not otherwise appropriated, there are 
        appropriated to the Secretary of Agriculture $15,000,000 for 
        fiscal year 1998 and for each succeeding fiscal year to carry 
        out this section.
            ``(2) Availability.--Amounts appropriated under paragraph 
        (1) shall remain available until expended.''.

SEC. 207. ADVISORY COMMITTEE TO STUDY WHETHER LAND GRANT INSTITUTIONS 
              ARE BEING FUNDED EQUITABLY.

    (a) Establishment.--The Secretary shall establish in the Department 
a bipartisan advisory committee to conduct a study of funding of 
institutions of higher education (as defined in section 1201(a) of the 
Higher Education Act of 1965) to determine whether eligible 
institutions (as defined in section 1447(a) of the National 
Agricultural Research, Extension, and Teaching Policy Act of 1977) and 
1994 Institutions (as defined in section 532 of the Equity in 
Educational Land-Grant Status Act of 1994) are receiving equitable 
support to assist the Department in carrying out its mission.
    (b) Number of Members.--The advisory committee shall be composed of 
not fewer than 5 members and not more than 25 members, appointed by the 
Secretary.
    (c) Prohibition Against Compensation.--
            (1) In general.--Except as provided in paragraph (2), the 
        members of the advisory committee may not receive pay, 
        allowances, or benefits by reason of their service on the 
        advisory committee.
            (2) Travel expenses.--Each member of the advisory committee 
        shall receive travel expenses, including per diem in lieu of 
        subsistence, in accordance with sections 5702 and 5703 of title 
        5, United States Code.
    (d) Quorum.--One third of the members of the advisory committee 
shall constitute a quorum.
    (e) Chairperson.--The Secretary (or the delegate of the Secretary) 
shall be the chairperson of the advisory committee.
    (f) Experts and Consultants.--The chairperson of the advisory 
committee may procure temporary and intermittent services under section 
3109(b) of title 5, United States Code.
    (g) Staff of Federal Agencies.--Upon request of the chairperson of 
the advisory committee, the head of any Federal department or agency 
may detail, on a reimbursable basis, any of the personnel of that 
department or agency to the advisory committee to assist it in carrying 
out its duties under this section.
    (h) Powers.--
            (1) Hearings and sessions.--The advisory committee may, for 
        the purpose of carrying out this section, hold hearings, sit 
        and act at times and places, take testimony, and receive 
        evidence as the advisory committee considers appropriate. The 
        advisory committee may administer oaths or affirmations to 
        witnesses appearing before it.
            (2) Powers of members and agents.--Any member or agent of 
        the advisory committee may, if authorized by the advisory 
        committee, take any action which the advisory committee is 
        authorized to take by this section.
            (3) Obtaining official data.--The advisory committee may 
        secure directly from any department or agency of the United 
        States information necessary to enable it to carry out this 
        section. Upon request of the chairperson of the advisory 
        committee, the head of that department or agency shall furnish 
        that information to the advisory committee.
            (4) Mails.--The advisory committee may use the United 
        States mails in the same manner and under the same conditions 
        as other departments and agencies of the United States.
    (i) Report.--Within 9 months after the Secretary appoints the 
members of the advisory committee, the advisory committee shall submit 
to the Secretary a report on the matters described in subsection (a).
    (j) Termination.--The advisory committee shall terminate upon the 
submission of the report required by subsection (i).

SEC. 208. FUNDING OF PROGRAM OF OUTREACH AND TECHNICAL ASSISTANCE TO 
              SOCIALLY DISADVANTAGED FARMERS.

    Section 2501(a)(3) of the Food, Agriculture, Conservation, and 
Trade Act of 1990 (7 U.S.C. 2279(a)(3)) is amended to read as follows:
            ``(3) Appropriation.--Out of any money in the Treasury of 
        the United States not otherwise appropriated, there are 
        appropriated to the Secretary $10,000,000 for each fiscal year 
        to carry out this section.''.

SEC. 209. FUNDING OF EXTENSION INDIAN RESERVATION PROGRAM.

    Section 1677(g) of the Food, Agriculture, Conservation, and Trade 
Act of 1990 (7 U.S.C. 5930(g)) is amended to read as follows:
    ``(g) Appropriation.--Out of any money in the Treasury of the 
United States not otherwise appropriated, there are appropriated to the 
Secretary $8,000,000 for each fiscal year to carry out this section.''.

        TITLE III--FUNDING OF FARM OWNERSHIP AND OPERATING LOANS

SEC. 301. FUNDING OF FARM OWNERSHIP AND OPERATING LOAN PROGRAMS.

    Section 346(b)(1) of the Consolidated Farm and Rural Development 
Act (7 U.S.C. 1994(b)(1)) is amended by adding at the end the 
following:
                    ``(H) Out of any money in the Treasury of the 
                United States not otherwise appropriated, there are 
                appropriated to the Secretary for fiscal year 1998 and 
                for each succeeding fiscal year $585,000,000 for direct 
                loans, of which--
                            ``(i) $85,000,000 shall be for farm 
                        ownership loans under subtitle A; and
                            ``(ii) $500,000,000 shall be for operating 
                        loans under subtitle B.''.
TABLE OF CONTENTS: 
     Title I:  Program Accountability 
     Title II:  Program Equity 
     Title III:  Funding of Farm Ownership and Operating Loans 
USDA Accountability and Equity Act of 1997 - 
Title I:  Program Accountability
 - Amends the Soil Conservation and Domestic Allotment Act to increase the size of the county committees by two members who shall be:  (1) appointed by the Secretary of Agriculture (Secretary); and (2) demographically representative of local producers. 
States that: (1) civil service laws shall apply to all persons performing functions for any county, area, or local committee; and (2) the county executive director of such committee, or other person selected by the Secretary, shall have sole responsibility for making local agricultural loan determinations, subject to State-level approval. 
(Sec. 102) Provides for the conversion of permanent and temporary (at the Secretary's discretion) county and area office employees to Federal civil service status.  Makes conforming amendments the Department of Agriculture Reorganization Act of 1994 and other Federal law. 
Title II:  Program Equity
 - Amends the Consolidated Farm and Rural Development Act to permit agricultural operating loans to be made to delinquent borrowers under specified circumstances. 
(Sec. 202) Appropriates funds for lease-back or buy-back opportunities for beginning farmers or ranchers. 
(Sec. 203) Treats debt write-downs as non-income for tax purposes. 
(Sec. 204) Amends the Housing Act of 1949 to prohibit housing loan denial to an applicant who has been able to live in a financially independent manner for a reasonable time. 
(Sec. 205) Amends the Food Security Act of 1985 with respect to the environmental quality incentives program to:  (1) increase program funding; (2) reduce the livestock set-aside; and (3) establish a set-aside for socially disadvantaged agricultural producers. 
(Sec. 206) Amends the National Agricultural Research, Extension, and Teaching Policy Act of 1977 to make permanent appropriations for 1890 land grant college grants.  (Current law provides for non-permanent authorization of appropriations for such grants.)  Directs the Secretary to establish an advisory committee to study whether such institutions' funding is equitable. 
(Sec. 208) Amends the Food, Agriculture, Conservation, and Trade Act of 1990 to make permanent appropriations (currently permanently authorized) for:  (1) Indian reservation extension education programs; and (2) outreach and technical assistance programs for socially disadvantaged farmers and ranchers. 
Title III:  Funding of Farm Ownership and Operating Loans
 - Amends the Consolidated Farm and Rural Development Act to make permanent appropriations for farm operating and ownership loans.  (Current law provides for a non-permanent authorization of appropriations for such loans.)
USDA Accountability and Equity Act of 1997