```

[House Report 115-706]
[From the U.S. Government Publishing Office]

115th Congress   }                                     {       Report
                        HOUSE OF REPRESENTATIVES
 2d Session      }                                     {      115-706

======================================================================

 
   AGRICULTURE, RURAL DEVELOPMENT, FOOD AND DRUG ADMINISTRATION, AND 
               RELATED AGENCIES APPROPRIATIONS BILL, 2019

                                _______
                                

  May 24, 2018.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed

                                _______
                                

          Mr. Aderholt, from the Committee on Appropriations, 
                        submitted the following

                              R E P O R T

                             together with

                     MINORITY AND ADDITIONAL VIEWS

                        [To accompany H.R. 5961]

    The Committee on Appropriations submits the following 
report in explanation of the accompanying bill making 
appropriations for Agriculture, Rural Development, Food and 
Drug Administration, and Related Agencies for fiscal year 2019.

                                CONTENTS

                                                                   Page
Title I--Agricultural Programs...................................     3
Title II--Farm Production and Conservation Programs..............    38
Title III--Rural Development Programs............................    45
Title IV--Domestic Food Programs.................................    54
Title V--Foreign Assistance and Related Programs.................    60
Title VI--Related Agencies and Food and Drug Administration......    63
Title VII--General Provisions....................................    81

                                OVERVIEW

    The Agriculture, Rural Development, Food and Drug 
Administration, and Related Agencies Subcommittee has 
jurisdiction over the U.S. Department of Agriculture (USDA), 
except for the Forest Service, the Food and Drug Administration 
(FDA), the Commodity Futures Trading Commission (CFTC), and the 
Farm Credit Administration (FCA). The Subcommittee's 
responsibility covers a vast and diverse group of agencies 
responsible for such things as promoting the production of a 
plentiful food supply; assisting farmers and ranchers across 
the country with sound production practices; improving the 
quality of life and vitality of communities in rural America; 
assisting indigent populations in the U.S. and abroad with 
basic nutritional needs; research and development in 
agriculture to improve productivity and stability; overseeing 
commodity markets that provide confidence for businesses, 
traders, investors, and the public; supporting a safe food 
supply; and safe and effective drugs and medical devices. The 
activities of these agencies impact every American every day of 
the year.
    The fiscal year 2019 discretionary spending in this bill 
totals $23,273,000,000, which is $14,000,000 above the fiscal 
year 2018 enacted level and $6,238,830,000 above the 
President's budget request for fiscal year 2019.
    The funding levels provided in this appropriations bill 
continue to demonstrate how seriously this Committee takes its 
responsibility to fund the highest priority programs and 
activities while helping to address the nation's debt, deficit, 
and economic challenges.

                         Oversight and Hearings

    Consistent with the Committee on Appropriations Oversight 
Plan, as approved and transmitted to the Committee on Oversight 
and Government Reform and the Committee on House Administration 
at the beginning of the 115th Congress, the Subcommittee began 
the fiscal year 2019 process committed to maintaining the 
Committee's focus on comprehensive oversight of federal 
discretionary spending under the Subcommittee's jurisdiction. 
In order to thoroughly review the President's budget request 
for fiscal year 2019 and examine how funds appropriated in 
previous years had been managed, the Subcommittee held five 
hearings for the agencies and programs of the USDA, the FDA, 
and the CFTC. The hearings included:
        Commodity Futures Trading Commission--March 7, 2018
        USDA Inspector General--March 15, 2018
        Food and Drug Administration--April 17, 2018
        Secretary of Agriculture--April 18, 2018
        Member Day--April 25, 2018
    As stewards of the taxpayer's dollar, the Subcommittee is 
responsible for ensuring that the funds under its jurisdiction 
are wisely invested and properly used. As such, the 
Subcommittee established four objectives to guide its hearings, 
oversight activities, and the development of its bill and 
report recommendations for fiscal year 2019. These objectives 
include bolstering prosperity and economic well-being in rural 
America and the farm economy; conducting fair and transparent 
oversight of agency activities and public resources; promoting 
economic growth through effective and efficient regulation and 
minimization of regulatory overreach; and protecting the health 
and safety of people, plants, and animals.
    Through its oversight activities, the Subcommittee can 
improve the management of agencies and programs by identifying 
and reducing waste, fraud, and abuse. It is joined in this 
effort by USDA's Inspector General, CFTC's Inspector General, 
and the Inspector General's Office of the Department of Health 
and Human Services. During the hearing with USDA's Office of 
the Inspector General (OIG), the Subcommittee focused on USDA 
financial statements, improper payments, and how well USDA's 
agencies are managing their programs.
    The Subcommittee questioned the Secretary of Agriculture 
about spending reductions included in USDA's budget request 
that are proposed for some of USDA's most popular and 
successful programs, such as Rural Development loan and grant 
programs and food aid programs. The Subcommittee also 
highlighted recent rural infrastructure investments in the FY18 
Consolidated Appropriation Act and the implementation of 
disaster programs in the supplemental appropriation package 
following the 2017 hurricanes and wildfires.
    When the Subcommittee heard from the FDA, it discussed the 
historic increases in the agency's appropriations and the 
significant increases in the President's FY 2019 budget 
request. The Subcommittee also discussed recent regulatory 
changes affecting the food, drug, healthcare, and tobacco 
industries. The FDA regulates over 20 percent of every consumer 
dollar spent on products in the U.S., and so the Subcommittee 
reminded the FDA to be aware of the comprehensive economic 
impact of their regulatory decisions.
    While examining CFTC's budget request, the Subcommittee 
discussed the requested funding level of $281,500,000, which 
includes a $31,500,000 user fee proposal that was submitted 
without legislative text. The Subcommittee reviewed the size of 
the swaps market and how this affects measures of systemic 
risk. Finally, the Subcommittee continued its oversight into 
policy issues including a discussion about inter-affiliate swap 
transactions.
    Because the Subcommittee knows that it cannot fulfill all 
requests for funding, it focuses on those areas that are most 
effective, broadly supported, and capable of delivering 
positive outcomes and a substantial return on investment. The 
Subcommittee will monitor the issues identified by its 
constituents and other stakeholders, those issues discussed at 
the hearings, and other high priority matters relevant to the 
management of USDA, FDA, CFTC, and FCA. The Subcommittee will 
maintain its oversight efforts throughout the 115th Congress to 
ensure taxpayer dollars are wisely and prudently used on behalf 
of the American people.
    In this report, the term ``the Committees'' refers to the 
Committees on Appropriations of the House of Representatives 
and the Senate.

                                TITLE I

                         AGRICULTURAL PROGRAMS

                   Processing, Research and Marketing

                        Office of the Secretary

                     (INCLUDING TRANSFERS OF FUNDS)

 
 
 
2018 appropriation....................................       $46,532,000
2019 budget estimate..................................        42,498,000
Provided in the bill..................................        39,287,000
Comparison:
    2018 appropriation................................        -7,245,000
    2019 budget estimate..............................        -3,211,000
 

    The following table reflects the amount provided by the 
Committee for each office and activity:

------------------------------------------------------------------------
                                          FY 2018    FY 2019   Committee
                                          enacted    estimate  provision
------------------------------------------------------------------------
Office of the Secretary................     $5,051     $4,850     $5,051
Assistant to the Secretary for Rural           800        800        800
 Development...........................
Office of Homeland Security............      1,496      1,448      1,496
Office of Partnerships and Public            4,711      1,672      4,711
 Engagement............................
Office of the Assistant Secretary for          804        875        875
 Administration........................
Departmental Administration............     22,301     22,501     16,301
Office of the Assistant Secretary for        3,869      3,091      3,750
 Congressional Relations...............
Office of Communications...............      7,500      7,261      6,303
                                        --------------------------------
    Total, Office of the Secretary.....    $46,532    $42,498    $39,287
------------------------------------------------------------------------

                          COMMITTEE PROVISIONS

    For the Office of the Secretary, the Committee provides an 
appropriation of $39,287,000. The Committee recommendation 
includes the following offices under the Office of the 
Secretary: immediate Office of the Secretary; Assistant to the 
Secretary for Rural Development; Office of Homeland Security; 
Office of Partnerships and Public Engagement; Office of the 
Assistant Secretary for Administration; Departmental 
Administration; Office of the Assistant Secretary for 
Congressional Relations; and Office of Communications.
    Pay Cost.--The Committee does not include funding for a 
civilian pay increase across the Department. Should the 
President provide a civilian pay increase for fiscal year 2019, 
it is assumed that the cost of such a pay increase will be 
absorbed within existing appropriations for fiscal year 2019.
    Behavioral Health.--The most recent report from the Centers 
for Disease Control and Prevention found rates of suicide among 
farmers are the highest of any occupation in the United States. 
Our farmers and individuals working in agriculture feed and 
sustain the world. The Committee encourages the USDA to provide 
a report to Congress regarding actions the Department has taken 
to address high rates of suicide among farmers. Further, the 
Committee encourages USDA to work in partnership with HHS to 
train employees at the National Suicide Prevention Lifeline to 
address farmer-specific mental health care to those working in 
agriculture who call into the Lifeline.
    Commodity Credit Corporation (CCC) Obligations and 
Commitments.--The Secretary is directed to notify the 
Committees in writing 15 days prior to the obligation or 
commitment of any emergency funds from the CCC.
    CCC Report.--The Committee directs the Secretary to provide 
a report on November 15, 2018, and May 17, 2019, on planned 
uses of funding under the authorities of Section 4 and Section 
11 of the CCC Charter Act.
    Crop Biotechnology & Biotech Ingredients.--Public and 
private sector scientists knowledgeable in genetic engineering, 
toxicology, chemistry, nutrition, and other scientific areas 
have carefully evaluated and assessed the safety of genetically 
engineered plants, food, and food ingredients and have 
determined that such products are safe for human and animal 
consumption. The Committee directs USDA to continue 
coordination efforts with the FDA to provide education and 
outreach to the public on the safety and benefits of crop 
biotechnology and food and animal feed ingredients derived from 
biotechnology.
    Data Analytics.--The Department's ability to manage and 
modernize information technology systems will allow USDA to 
more effectively and efficiently serve its customers and 
employees. Integrating data and sharing a common data and IT 
platform will enable the Department to provide more timely and 
accurate information to customers, citizens, and employees. 
Therefore, the Committee encourages the Department to leverage 
existing analytics infrastructure which will enable data-driven 
strategic decisions and improved customer experiences.
    Disaster Assistance Flexibility.--In fiscal years 2017 and 
2018, the Committee provided the Secretary with significant 
flexibility to provide assistance to producers suffering crop 
losses. The Committee notes that significant losses have 
occurred for blueberries, peaches, and dairy producers in 
calendar year 2017. The Committee encourages the Secretary to 
engage directly with stakeholders to resolve these issues.
    Nutrition Research Coordination.--The Committee seeks to 
bring more transparency and coordination to nutrition research 
and evaluation projects conducted by the Department. The 
Secretary is directed to ensure both the Research, Education, 
and Economics (REE) and the Food, Nutrition, and Consumer 
Services (FNCS) mission areas coordinate and finalize the Food 
and Nutrition Service (FNS) Research and Evaluation Plan 
submitted in fiscal year 2019 to prevent duplication of efforts 
and resources. The plan submitted for fiscal year 2019 shall 
include a brief description of the projects FNS expects to 
pursue and whether or not it was mandated by law.
    Section 737 of the bill states that FNS shall not receive 
any funding for new research and evaluation projects in fiscal 
year 2019 until the Committees on Appropriations receive the 
fiscal year 2019 Research and Evaluation Plan that has been 
developed in coordination with REE. In submitting the fiscal 
year 2020 budget justification, FNS is directed to provide its 
Research and Evaluation Plan simultaneously with its budget 
request. There is an expectation that this process will be 
followed in the future.
    Congressional Relations Allocation Notification.--Within 30 
days of the enactment of this Act, the Secretary shall notify 
the Committees on the allocation of the funds provided to the 
Assistant Secretary for Congressional Relations by USDA agency, 
along with an explanation for the agency-by-agency distribution 
of the funds.
    Administrative Provision.--The Committee directs the 
Secretary to advise the Committees, through the Office of 
Budget and Program Analysis (OBPA), of the status of all 
reports requested of the Department in this bill at the time of 
submission of the fiscal year 2020 budget request and monthly 
thereafter. All correspondence related to the directives in 
this bill must be addressed to the Committees.
    Status of House and Senate Report Language.--USDA is 
directed to include a status of all House and Senate 
Agriculture Appropriations Report language in its fiscal year 
2020 Explanatory Notes in the same form and type of response as 
that provided by the Food and Drug Administration within their 
2019 Congressional Justification.
    Loan and Grant Programs.--The Committee directs the 
Department, through OBPA, to provide quarterly reports to the 
Committees on the status of obligations and funds availability 
for the loan and grant programs provided in this bill.
    The Committee further directs that if an estimate of loan 
activity for any program funded in Titles II and III of this 
bill indicates that a limitation on authority to make 
commitments for a fiscal year will be reached before the end of 
that fiscal year, or in any event when 75 percent of the 
authority to make commitments has been utilized, the Secretary 
shall promptly notify the Committees through OBPA.
    Communication from USDA.--Members of the Committee must be 
informed of the activities, pending and proposed actions, and 
expenditures made by USDA and its respective agencies so that 
Congress can determine whether laws and programs are being 
implemented and carried out in accordance with the intent of 
Congress. A collaborative working relationship between the 
Committee and the agencies is necessary to ensure efficient and 
effective implementation of Congress' funding decisions. USDA 
is directed to ensure that the Committee is notified of major 
changes to existing policies and any significant developments 
in its operations prior to providing non-governmental 
stakeholders such information.
    Design-Build.--The Committee encourages the Department to 
use the design-build method of project delivery when 
appropriate.
    Flexibility in Loan and Loan Guarantee Levels.--The bill 
includes language to exceed by up to 25 percent the limitation 
on loan and loan guarantee levels without budget authority upon 
written notification to the Committees on Appropriations.
    Rural Poverty.--The Department has statutory authorities 
and programs designed to help break the multi-generational trap 
of poverty in rural counties. The Committee recognizes that 
USDA may utilize existing programs and funding within RD and 
FNS in order to assist families, create jobs, and develop a 
path towards independence and self-sufficiency. Other existing 
resources such as the extension service and public universities 
can be used for coordination and outreach activities. As of May 
2018, the Committee has not received the detailed plan required 
to be submitted by the Secretary which would detail all funding 
resources and bundled services to combat rural poverty.
    Seniors Farmers' Market Nutrition Program.--The Committee 
encourages USDA to improve eligible participants' awareness of 
the Seniors Farmers' Market Nutrition Program through education 
and outreach efforts.
    Urban Agriculture, Vertical Farming, Aquaponics, and Non-
Traditional Agriculture.--The Committee acknowledges the need 
for an expanded USDA role in support of the emerging industries 
of vertical farming, urban agriculture, aquaponics, and 
alternative forms of agriculture in American cities and 
surrounding communities. Support from the Department is needed 
for producers who often have different needs than traditional 
agricultural producers. These non-traditional methods of 
agricultural production have the potential to reduce the use of 
water and pesticides, improve yields for particular crops, 
serve lower income populations, and provide year round crops at 
the local level. USDA should consider intramural and extramural 
research where the Department and its stakeholders can work 
towards advancing technologies in this field. Therefore, the 
Committee directs USDA to evaluate current needs in this field, 
compare the needs with current or planned activities, and 
deliver a report within 60 days of enactment of this Act 
explaining how to further advance urban agriculture, vertical 
farming, aquaponics and other forms of non-traditional 
agriculture.
    Agroterrorism.--The United States enjoys a safe, plentiful, 
and inexpensive food supply. The Committee views domestic food 
production as a priority for national security. The Committee 
is concerned with the growing threats posed by agroterrorism, 
which is the deliberate introduction of an animal or plant 
disease for the purpose of generating fear, causing economic 
losses, or undermining social stability. The dangers to our 
food production posed from foreign terrorist organizations are 
real. The Committee directs the Secretary to explore the 
Department's laboratory and response capacity to address the 
reality of agroterrorism, and how national response plans can 
better incorporate agroterrorism. The Committee encourages the 
Secretary to coordinate with DHS, HHS, intelligence agencies, 
Interior, EPA, and other agencies to improve response plans, 
conduct vulnerability assessments, and expand monitoring and 
surveillance for agroterrorism. The Committee also encourages 
the Secretary to focus on bolstering tracking systems for 
agricultural products, laboratory networks, and border 
inspection training.
    Native American Foods.--Native American tribes suffer among 
the highest rates of diabetes in the United States. Traditional 
Native American diets have been shown to be culturally relevant 
and protective against metabolic diseases such as diabetes. The 
Food Distribution Program on Indian Reservations (FDPIR) has 
increased the variety of traditional foods offered in the 
program. The Committee directs USDA to develop programs in 
conjunction with Indian Tribal Organizations to restore food 
ecosystems and revive traditional foods based on dietary 
preferences of Native American populations. USDA shall continue 
to collaborate with FDPIR agencies on recommendations for food 
package changes, with the goal of further increasing the amount 
and variety of traditional and locally or regionally grown food 
items offered through the program.
    Native Plant Use Preference.--In undertaking a land 
management activity on Federal lands under the jurisdiction of 
the USDA, including maintenance and restoration in response to 
degradation caused by human activity or natural events (such as 
fire, flood, or infestation), the Committee directs that it be 
the policy of the USDA that preference shall be made to the 
extent practicable for the use of locally adapted native plant 
materials.
    Pilot Programs.--USDA implements numerous pilot programs, 
some of which have long surpassed the intended length of 
operation. When creating a pilot program, the intent is to test 
a new program for a specific amount of time and then determine 
whether or not the pilot has achieved the desired outcome. 
Those pilots with merit should be considered for broader 
implementation, and those without should end. The Secretary is 
directed to provide a report to the Committees and make it 
publicly available on the Department's website detailing the 
number and type of pilot programs currently active within each 
agency during fiscal year 2018, how long each pilot has been 
operational, and a recommendation on which pilots have proven 
successful and which have not.
    National Finance Center (NFC).--The Committee awaits the 
submission of the cost-benefit analysis related to NFC as 
directed by P.L. 115-141.
    Rural Broadband.--The Committee understands and supports 
the significant interest and need of providing access to high-
speed broadband infrastructure and services to rural portions 
of the United States. The Committee will continue to provide 
resources for broadband deployment, however it is important for 
Departments to avoid efforts that could duplicate existing 
networks built by private investment or those built leveraging 
and utilizing other federal programs. While it is current RUS 
policy to avoid duplication when financing communication 
infrastructure, the Committee recognizes that there are other 
federal programs that share similar broadband deployment 
expertise. In order to ensure that continued federal broadband 
investments are used as efficiently as possible, the Committee 
directs the Secretary of Agriculture to coordinate with the 
Federal Communications Commission (FCC) and the National 
Telecommunications Information Administration (NTIA) to ensure 
wherever possible that broadband loans and grants issued under 
the pilot program are being targeted to areas that are 
currently unserved. In particular, the Committee directs USDA 
to utilize the NTIA's assessment of the current state of 
broadband access nationwide, which includes the identification 
of existing infrastructure, gaps, and opportunities for more 
efficient deployment. In implementing a strategy for broadband 
deployment to unserved communities, the Committee directs the 
Department to explore utilizing all technologies, including but 
not limited to, fiber, cable modem, fixed wireless, and 
television white space as a means of building sustainable rural 
infrastructure for the modern economy. The Bill includes 
funding for broadband deployment through the Broadband Loan 
program, Community Connect grant program, Distance Learning and 
Telemedicine program and an additional $550,000,000 for a 
broadband pilot program.
    Veteran and Socially Disadvantaged Farmers and Ranchers.--
In addition to $10,000,000 in mandatory funding available to 
assist socially disadvantaged and veteran farmers and ranchers, 
the Bill includes an additional $3,000,000 in discretionary 
funding for these activities.
    Performance Measures.--The Committee directs USDA agencies 
funded by this Act to comply with title 31 of the United States 
Code, including the development of their organizational 
priority goals and outcomes such as performance outcome 
measures, output measures, efficiency measures, and customer 
service measures.
    Food Waste.--The Committee urges the Department of 
Agriculture in collaboration with other Federal agencies, 
including the Environmental Protection Agency and the Food and 
Drug Administration, to raise consumer awareness surrounding 
food waste. In the event that a Food Loss and Waste Reduction 
Liaison is established, the Committee encourages USDA to fund 
the position to support and promote Federal programs to measure 
and reduce the incidence of food loss and waste and increase 
food recovery.
    Alleviation of H-2A program regulatory burdens.--In order 
to reduce the burden to employers of communicating across 
multiple agencies with disparate processes and overlapping 
missions, the Committee directs the Secretary of Agriculture, 
in consultation with the Secretary of Labor, Director of United 
States Citizenship and Immigration Services, and Secretary of 
State, and in cooperation with U.S. Digital Services, to 
oversee the establishment and operation of a cloud-based, 
online platform through which agricultural employers will 
complete the H-2A petition and certification process. Such a 
platform shall handle employer input of all information 
required for the processing and adjudication of an H-2A 
petition and the certification process; provide secure, 
authenticated, and authorized agency analyst interactions; and 
provide transparency throughout the process to employers 
regarding the status of their petitions.

                          Executive Operations

                     OFFICE OF THE CHIEF ECONOMIST

 
 
 
2018 appropriation....................................       $19,786,000
2019 budget estimate..................................        19,487,000
Provided in the bill..................................        21,286,000
Comparison:
    2018 appropriation................................        +1,500,000
    2019 budget estimate..............................        +1,799,000
 

                          COMMITTEE PROVISIONS

    For the Office of the Chief Economist (OCE), the Committee 
provides an appropriation of $21,286,000.
    Trade Support.--The Committee provides an increase of 
$500,000 for economic and policy analysis in support of key 
U.S. multilateral and bilateral trade initiatives.
    Drought Resilience.--The Committee is concerned about the 
extent and severity of the drought in the U.S. and recognizes 
the importance of understanding and being prepared for drought. 
The Committee encourages the OCE to continue research and work 
with partners on drought resilience efforts to better address 
the serious threat posed by drought in the U.S.
    Policy Research.--The Committee includes $5,000,000, an 
increase of $1,000,000, for policy research under 7 U.S.C. 3155 
for entities with existing institutional capacity, including 
staff, databases, models, and long-term, well-documented 
experience, to conduct complex economic and baseline analysis 
for the benefit of USDA, the Congressional Budget Office, and 
the Congress.
    Office of Pest Management Policy.--The Committee commends 
the Office of Pest Management Policy for its work providing the 
Department, federal agencies, producers, and other interested 
stakeholders scientifically sound analysis of pest management 
issues important to agriculture, especially methyl bromide 
transition, pesticide resistance management, and the 
development of antimicrobials to combat citrus greening.

                     OFFICE OF HEARINGS AND APPEALS

 
 
 
2018 appropriation....................................       $15,222,000
2019 budget estimate..................................        14,183,000
Provided in the bill..................................        14,972,000
Comparison:
    2018 appropriation................................          -250,000
    2019 budget estimate..............................          +789,000
 

                          COMMITTEE PROVISIONS

    For the Office of Hearings and Appeals, the Committee 
provides an appropriation of $14,972,000.

                 OFFICE OF BUDGET AND PROGRAM ANALYSIS

 
 
 
2018 appropriation....................................        $9,525,000
2019 budget estimate..................................         8,631,000
Provided in the bill..................................         9,525,000
Comparison:
    2018 appropriation................................             - - -
    2019 budget estimate..............................          +894,000
 

                          COMMITTEE PROVISIONS

    For the Office of Budget and Program Analysis, the 
Committee provides an appropriation of $9,525,000.

                Office of the Chief Information Officer

 
 
 
2018 appropriation....................................       $58,950,000
2019 budget estimate..................................        62,524,000
Provided in the bill..................................        58,950,000
Comparison:
    2018 appropriation................................             - - -
    2019 budget estimate..............................        -3,574,000
 

                          COMMITTEE PROVISIONS

    For the Office of the Chief Information Officer (CIO), the 
Committee provides an appropriation of $58,950,000. This 
includes $33,000,000 for cybersecurity activities, including 
support of the Continuous Diagnostics and Mitigation program.
    IT Purchases and Oversight.--The Committee directs the CIO 
to comply with the spirit and letter of the Federal Information 
Technology Acquisition Reform Act and incorporate its 
principles into future planning and current oversight of IT 
activities across the Department and the performance plan 
required in H. Rpt. 113-468.
    Micro-Segmentation of Networks.--The Committee recognizes 
that the use of digital workspace technologies can increase 
user productivity, enhance cybersecurity, and allow workforce 
flexibility. The Committee encourages the Department to explore 
a broad ecosystem support of multi-factor authentication 
solutions to strengthen the Department's cybersecurity posture. 
This should include strategies and programs that reduce the 
total life cycle costs of traditional legacy workspace 
infrastructure.

                 Office of the Chief Financial Officer

 
 
 
2018 appropriation....................................        $6,028,000
2019 budget estimate..................................         5,536,000
Provided in the bill..................................         5,741,000
Comparison:
    2018 appropriation................................          -287,000
    2019 budget estimate..............................          +205,000
 

                          COMMITTEE PROVISIONS

    For the Office of the Chief Financial Officer (CFO), the 
Committee provides an appropriation of $5,741,000.

           Office of the Assistant Secretary for Civil Rights

 
 
 
2018 appropriation....................................          $901,000
2019 budget estimate..................................           800,000
Provided in the bill..................................           901,000
Comparison:
    2018 appropriation................................             - - -
    2019 budget estimate..............................          +101,000
 

                          COMMITTEE PROVISIONS

    For the Office of the Assistant Secretary for Civil Rights, 
the Committee provides an appropriation of $901,000.

                         Office of Civil Rights

 
 
 
2018 appropriation....................................       $24,206,000
2019 budget estimate..................................        22,345,000
Provided in the bill..................................        24,206,000
Comparison:
    2018 appropriation................................             - - -
    2019 budget estimate..............................        +1,861,000
 

                          COMMITTEE PROVISIONS

    For the Office of Civil Rights, the Committee provides an 
appropriation of $24,206,000.

                  Agriculture Buildings and Facilities

                     (INCLUDING TRANSFERS OF FUNDS)

 
 
 
2018 appropriation....................................       $64,414,000
2019 budget estimate..................................        58,330,000
Provided in the bill..................................        62,250,000
Comparison:
    2018 appropriation................................        -2,164,000
    2019 budget estimate..............................        +3,920,000
 

                          COMMITTEE PROVISIONS

    For Agriculture Buildings and Facilities, the Committee 
provides an appropriation of $62,250,000.

                     Hazardous Materials Management

                     (INCLUDING TRANSFERS OF FUNDS)

 
 
 
2018 appropriation....................................        $3,503,000
2019 budget estimate..................................         3,463,000
Provided in the bill..................................         3,503,000
Comparison:
    2018 appropriation................................             - - -
    2019 budget estimate..............................           +40,000
 

                          COMMITTEE PROVISIONS

    For Hazardous Materials Management, the Committee provides 
an appropriation of $3,503,000.

                      Office of Inspector General

 
 
 
2018 appropriation....................................       $98,208,000
2019 budget estimate..................................        87,436,000
Provided in the bill..................................        98,208,000
Comparison:
    2018 appropriation................................             - - -
    2019 budget estimate..............................       +10,772,000
 

                          COMMITTEE PROVISIONS

    For the Office of Inspector General, the Committee provides 
an appropriation of $98,208,000. This amount does not include 
funding for staff buyouts or reductions in investigations and 
audits.

                     Office of the General Counsel

 
 
 
2018 appropriation....................................       $44,546,000
2019 budget estimate..................................        41,717,000
Provided in the bill..................................        44,846,000
Comparison:
    2018 appropriation................................          +300,000
    2019 budget estimate..............................        +3,129,000
 

                          COMMITTEE PROVISIONS

    For the Office of the General Counsel, the Committee 
provides an appropriation of $44,846,000.
    International Trade Agreements.--The Committee recognizes 
the significant increase in demand for the OGC's services in 
international trade agreements. The Committee directs USDA to 
add additional support to OGC in current and future 
international trade activities.

                            Office of Ethics

 
 
 
2018 appropriation....................................        $4,136,000
2019 budget estimate..................................         2,897,000
Provided in the bill..................................         4,136,000
Comparison:
    2018 appropriation................................             - - -
    2019 budget estimate..............................        +1,239,000
 

                          COMMITTEE PROVISIONS

    For the Office of Ethics, the Committee provides an 
appropriation of $4,136,000.

  Office of the Under Secretary for Research, Education, and Economics

 
 
 
2018 appropriation....................................          $800,000
2019 budget estimate..................................           800,000
Provided in the bill..................................           800,000
Comparison:
    2018 appropriation................................             - - -
    2019 budget estimate..............................             - - -
 

                          COMMITTEE PROVISIONS

    For the Office of the Under Secretary for Research, 
Education, and Economics, the Committee provides an 
appropriation of $800,000.
    Coffee Plant Health.--The Committee appreciates ARS and 
NIFA's work to address existing and emerging challenges to 
coffee production in the United States and commends the 
agency's work with research partners and coffee grower groups. 
The Committee encourages ARS, NIFA, and its partners to 
maintain support for coffee plant health research.
    Food Safety and Defense Technology Research.--The Committee 
remains concerned that global competition and the demand for 
increased productivity, efficiency, and profitability could put 
food safety and security at risk. The ability to rapidly, 
accurately, and cost effectively detect pathogens or 
contaminants in the food supply chain is critical to protecting 
the United States from food-borne illnesses and exploitation. 
The Committee directs USDA to invest in the research and 
development of novel bio-detection technologies and the 
implementation of mobile bio-detection platforms. The 
Department should consider technologies currently in use or 
under development in other fields, such as medicine or homeland 
security, to determine whether the technology can meet the 
needs in high volume food production or mobile food defense 
monitoring.
    Fusarium Mycotoxins.--The Committee recognizes that 
Fusarium mycotoxins are harmful to several components of the 
poultry industry, negatively affect catfish, horses, and swine, 
and are toxic to humans. Due to the endophytic habit of 
Fusarium verticillioides, it is also prevalent in corn and 
wheat, which are major ingredients in animal feed. Therefore, 
the Committee urges USDA to support research programs studying 
the endophytic habits and genetic variability of Fusarium 
mycotoxins to develop an intervention plan to prevent harm to 
humans and animals.
    Leveraging Plant Genome Information.--The Committee 
recognizes the potential impact that variable weather, 
environments, and production systems can have on the yield and 
quantity of maize and the need for greater prediction of plant 
performance under variable growing conditions. The Committee 
encourages USDA to support research that leverages plant 
genomic information with phenotypic and environmental data 
through an interdisciplinary framework, resulting in an 
understanding of plant processes that affect productivity and 
the ability to predict plant performance.
    Pollinators and Colony Health Research.--The Committee 
recognizes that Colony Collapse Disorder and related colony 
health issues are a significant concern to beekeepers, honey 
producers, farmers, researchers, policymakers, and the public. 
It appreciates USDA's logical, scientifically based approach to 
studying these issues and directs the Department to continue to 
focus on the challenges facing pollinators.
    Potato Research.--The Committee supports research efforts 
to combat crop-threatening pest and disease pressures, 
including the potato cyst nematode. The Committee also 
recognizes the importance of research initiatives to identify 
and improve desired traits for new potato varieties and directs 
the Department to continue working with universities, industry 
and potato growers on these projects.
    Poultry Technology Research.--The Committee understands 
that the U.S. poultry industry is the most efficient in the 
world. However, with expected global growth in demand and 
competition, technological advances in broiler production are 
critical to increasing production and profitability. The 
Committee supports cooperative research that contributes to 
increased efficiencies in housing, equipment, energy and 
environmental controls tailored to meet the long-term needs of 
the industry.
    Screening Technologies.--The Committee encourages the 
development of technologies that will provide rapid, portable, 
and facile screening of food fish species at port sites and 
wholesale and retail centers.
    Vector Control.--The Committee encourages USDA to support 
research, including the work done through the Biotechnology 
Risk Assessment Research Grants program, to develop innovative 
vector control technologies targeted to combatting Zika-
carrying Aedes aegypti mosquitos. The Committee is aware that 
vaccine development takes time, pesticide use has a variety of 
limitations, and human health effects and treatment will be a 
challenge for years to come. Therefore, the Committee urges 
USDA to utilize pest management programs and partner 
organizations to conduct research to develop and test effective 
repellents, create new molecular pesticide technologies that 
prevent mosquitoes from reproducing, and explore natural 
product remedies to deter pests.

                       Economic Research Service

 
 
 
2018 appropriation....................................       $86,757,000
2019 budget estimate..................................        45,000,000
Provided in the bill..................................        86,757,000
Comparison:
    2018 appropriation................................             - - -
    2019 budget estimate..............................       +41,757,000
 

                          COMMITTEE PROVISIONS

    For the Economic Research Service (ERS), the Committee 
provides an appropriation of $86,757,000. The Committee does 
not concur with the request to significantly eliminate ERS' 
research activities.
    Breastfeeding.--The Committee awaits ERS' update to its 
2001 Jon Weimer study of the economic benefits of 
breastfeeding.
    Evidence-Based Policymaking.--As part of the bipartisan 
effort to improve government capacity for evidence-based 
policymaking, the Committee encourages ERS to explore ways to 
assist rural communities in using data and evidence to address 
local challenges. In particular, ERS should examine ways in 
which local governments in rural communities could access the 
research and data expertise of public land-grant universities 
to help communities address local needs and priorities.

                National Agricultural Statistics Service

 
 
 
2018 appropriation....................................      $191,717,000
2019 budget estimate..................................       165,000,000
Provided in the bill..................................       173,717,000
Comparison:
    2018 appropriation................................       -18,000,000
    2019 budget estimate..............................        +8,717,000
 

                          COMMITTEE PROVISIONS

    For the National Agricultural Statistics Service (NASS), 
the Committee provides an appropriation of $173,717,000, of 
which $45,350,000 is for the Census of Agriculture.

                     Agricultural Research Service

                         SALARIES AND EXPENSES

 
 
 
2018 appropriation....................................    $1,202,766,000
2019 budget estimate..................................     1,018,991,000
Provided in the bill..................................     1,259,916,000
Comparison:
    2018 appropriation................................       +57,150,000
    2019 budget estimate..............................      +240,925,000
 

                          COMMITTEE PROVISIONS

    For Salaries and Expenses of the Agricultural Research 
Service (ARS), the Committee provides an appropriation of 
$1,259,916,000.
    While the Committee does not concur with all of the 
proposed decreases for fiscal year 2019, the Committee 
encourages ARS to reallocate resources for research that have 
been determined by the ARS as mature or where research 
objectives have been accomplished to other high priority 
research areas. The Committee does not concur with the budget 
request regarding the termination of extramural research.
    Agricultural Research Facilities.--The Committee does not 
concur with the proposed closure of 20 research facilities in 
the budget request and is concerned about the continued trend 
towards reductions in on-the-ground agricultural research 
through proposed cutbacks and consolidations without a clear 
plan to ensure that research reflects local needs and growing 
conditions.
    National Bio and Agro Defense Facility (NBAF).--The 
Committee provides resources for planning and start-up costs 
associated with the preparation for the transition of NBAF from 
the Department of Homeland Security (DHS) to the Department of 
Agriculture. While the Committee concurs that NBAF activities 
more closely align with the USDA mission area, there remain 
concerns on the projected operational and maintenance costs and 
research funding needs associated with the NBAF facility. The 
Committee expects ARS to responsibly plan for the facility 
operations and under no circumstance enable the transition of 
NBAF to undermine ARS' ability to fully address its mission and 
leave the four national program areas (nutrition, food safety 
and quality; animal production and protection; crop production 
and protection; and natural resources and sustainable 
agricultural systems) vulnerable to potential funding 
reductions due to the funding needs of NBAF. The Committee 
directs ARS to continue supporting the four national program 
research areas towards developing solutions to agricultural 
problems of the highest national priority. The Committee 
directs ARS, in collaboration with other USDA agencies and in 
consultation with the DHS, to report to Congress within 120 
days of enactment with an estimate of the funding needed for 
each of fiscal years 2019-2023 to support: operational costs 
and maintenance; workforce needs and recruitment efforts; 
equipment; and research start-up costs. The report should also 
include strategic research goals based on NBAF's enhanced 
capabilities and plans for stakeholder engagement. The 
Committee strongly encourages USDA to explore cost-effective 
mechanisms for public-private partnerships with the academic 
research community and industry that will leverage federal 
investments in NBAF.
    Animal Research.--The Committee continues to request 
updates related to ongoing APHIS inspections and any findings 
at ARS research facilities conducting animal research.
    Aerial Application Research.--The Committee recognizes the 
importance of the ARS Aerial Application Technology Program. 
The program conducts innovative research making aerial 
applications more efficient, effective, and precise. Research 
for aerial application serves the public good as a vital tool 
for the future, as agriculture strives to meet the food, fiber, 
and bio-energy demands of a growing population.
    Alfalfa Research.--The Committee supports research into 
alfalfa seed and forage systems, which hold the potential to 
maximize crop yields, increase milk production, and improve 
genetics.
    ARS Field Stations.--The Committee recognizes the 
successful utilization of authorities granted in previous 
annual appropriations Acts to further cooperation between 
industry and the ARS Canal Point, Florida Sugarcane Field 
Station. However, the Committee is concerned that this 
partnership is jeopardized by requirements that are outside the 
scope of the functionality of the facilities. The Committee 
directs ARS to resolve these issues, thus allowing this model 
partnership to continue. Additionally, the Committee recognizes 
Florida's importance as a sentinel state in studying invasive 
pests and diseases. With new species entering ports every week, 
it is critical that ARS devote attention to the need for 
research facilities to study these threats.
    Aquaculture Industry Coordination.--Nearly half the seafood 
consumed across the world is the result of aquaculture, and the 
aquaculture industry is a critical and growing part of the U.S. 
economy. However, less than one percent of worldwide production 
comes from U.S. producers. In January 2016, the National 
Oceanic and Atmospheric Administration's National Marine 
Fisheries Services issued a final rule to open the federal 
waters in the Gulf of Mexico to development of aquaculture. The 
Committee is concerned that vital seedstock required to 
implement this initiative will be sourced from foreign 
aquaculture producers. The Committee encourages the agency to 
support and protect the U.S. aquaculture industry by working 
collaboratively with U.S. aquaculture producers and research 
institutions that specialize in the development of aquaculture 
technologies.
    Aquatic Animal Health.--The Committee supports ARS' work 
with land-grant universities and other federal partners to 
develop solutions to aquatic animal pathogens including 
Aeromonas in catfish and viral hemorrhagic septicemia in 
finfish. ARS is encouraged to collaborate with industry 
stakeholders on the development of potential vaccines and 
therapeutants.
    Blueberry and Cranberry Research.--The Committee is 
supportive of the multi-university cranberry and blueberry 
research programs operated in partnership with the ARS, and 
provides an additional $1,000,000 in funding for the purchase 
of equipment and the hiring of additional scientists to meet 
research needs in disease prevention, pesticide reduction, and 
water conservation.
    Cereal Rust Research.--The Committee remains concerned 
about cereal rust diseases and supports research towards 
developing resistance genes against cereal rust races, 
including resistance to new cereal rust varieties and 
identifying when and how new cereal rust races emerge.
    Citrus Greening Disease Research.--The Committee commends 
ARS' research efforts on citrus greening disease and encourages 
the agency to continue working to develop methods to reduce 
transmission and enhance immunity in citrus trees and to work 
with industry, universities, growers, and other partners to 
develop effective control mechanisms. The Committee also 
encourages ARS to coordinate its efforts with the Huanglongbing 
Multi-Agency Coordination (HLB MAC) group.
    Co-Location of Researchers.--The Committee encourages ARS 
to develop a plan to maximize its investments in plant science 
facilities and research by taking advantage of the synergies 
and efficiencies realized through the co-location of USDA 
researchers in state-of-the-art facilities with university and 
other stakeholders.
    Cotton Ginning.--The Committee recognizes the importance of 
pollution abatement, improving fiber quality, ginning 
efficiency, cotton seed and other byproducts, and remains 
committed to expanding research in cotton ginning and 
innovation by existing laboratories.
    Floriculture and Nursery Research Initiative (FNRI).--The 
Committee values the importance of floral and horticultural 
industry as floriculture and nursery crops are the third-
largest domestic crop in value, outranked only by corn and 
soybeans. The FNRI is focused on addressing and solving the 
industry's challenges and needs.
    Forest Products Research.--The forest products sector is an 
important part of the U.S. economy. The Committee supports 
research on wood quality, forest product evaluation standards 
and valuation techniques, and ARS' continuing work with the 
Forest Products Laboratory.
    Genetic Oat Research.--The Committee recognizes the 
potential genetic oat research has to improve disease 
resistance (especially rusts and viruses), genetics, increase 
yields, and develop crop rotation systems that include oats, 
which will enhance the value of oats and provide benefits to 
producers and consumers. The Committee provides an increase of 
$1,000,000 to research oat germplasm, genomics, phonemics, 
disease resistance, and enhanced yield.
    Germplasm Enhancement of Maize.--The Committee supports the 
germplasm enhancement of maize projects and encourages 
continued cooperation between ARS and industry.
    Greenhouse Technology Research.--The Committee recognizes 
the importance of advancing greenhouse technology and exploring 
its capabilities to address the energy and water challenges 
inherent in four-season production systems, beginning in food 
insecure communities across the country. The Committee 
encourages ARS to work with the Department of Energy (DOE) for 
greenhouse technology research that explores how to integrate 
ongoing research projects at the various DOE National Labs to 
develop affordable, deployable, and energy and water-efficient 
food production platforms for undernourished regions of the 
country. By working together, ARS' and DOE can bring their 
respective strengths and resources to designing the most 
desirable, low-cost, and efficient production system.
    High Performance Computing Support.--The Committee provides 
an additional $1,250,000 to expand high performance computing 
capability to address scientific need and requires ARS to 
continue to collaborate with partners with the technical 
capacity and scientific synergy to provide cost-effective high 
performance computing support.
    Hops Research.--The Committee recognizes that the U.S. hops 
industry has experienced unprecedented expansion due to the 
brewing industry's economic growth over the past decade. To 
sustain this growth, new varieties of hops are needed to 
prevent disease and expand production throughout the country. 
The Committee encourages ARS continued efforts on hops 
research.
    Horticultural Research and Education.--The Committee 
recognizes the U.S. National Arboretum as a prominent research 
body staffed with highly skilled and dedicated scientists with 
a history of scientific discovery in environmental 
horticulture. The Committee encourages continued support of the 
Arboretum as its research and academic programs not only work 
towards developing new approaches in detecting and treating 
plant disease, but also the ability to connect people with 
plants in a unique and serene environment that enhances the 
public understanding of agricultural plant sciences.
    Human Nutrition Research.--There is strong evidence that 
nutrition plays a vital role in how a person ages, particularly 
its significance for preventative health care and degenerative 
and age-related diseases. Research is needed to address the 
needs of the rapidly growing number of older Americans. The 
Committee encourages ARS to continue research relating to the 
effect of nutrition on aging.
    Livestock Protection.--The Committee recognizes the 
challenges caused by infectious disease problems arising from 
wildlife-domestic animal agriculture interactions, particularly 
between domestic sheep and wild bighorn sheep. Researchers have 
recently produced an experimental vaccine to protect bighorn 
populations from disease, but much work is still required. The 
Committee encourages ARS to pursue work to determine the role 
of domestic sheep in causing die-offs of bighorn sheep from 
respiratory disease and develop methods to reduce transmission 
and enhance immunity in domestic and bighorn sheep.
    Long-Term Agro-ecosystem Research.--The Committee provides 
an additional $1,000,000 above fiscal year 2018 for the Long-
Term Agro-ecosystem Research (LTAR) network.
    Lower Mississippi River Basin.--The Committee recognizes 
the groundwater problems in the Lower Mississippi River Basin 
and encourages ARS, in collaboration with university research, 
extension scientists and local stakeholders, to identify gaps 
in water management research and focus efforts on the 
development of conservation and irrigation techniques to reduce 
water usage in agriculture production while maintaining crop 
quality and yield.
    Marine Aquaculture Seedstock.--The Committee is concerned 
that vital seedstock to support the development of aquaculture 
in federal waters of the Gulf of Mexico will be sourced from 
foreign aquaculture producers. Domestic on-land recirculating 
aquaculture systems and offshore aquaculture are highly capable 
of producing a steady supply of marine fish seedstock to 
support new offshore and aquaculture industries. This includes 
broodstock acquisition and care, spawning, larval culture 
techniques, and juvenile rearing. The Committee provides 
$2,000,000 for the development effort of aquaculture technology 
that will ensure a steady supply of warm water marine fish 
seedstock for economic growth of the U.S. aquaculture industry.
    National Agricultural Library.--The Committee encourages 
ARS to maintain a focus on agricultural-related legal issues 
within the National Agricultural Library. The Committee notes 
that as the agriculture sector faces increasing financial 
stress, there is a necessity that agriculture-related legal 
issues be addressed on an increasingly frequent basis. Further, 
agriculture-related legal issues are increasingly complex, and 
the impact of these legal issues continues to broaden in scope. 
The Committee recommends that the National Agricultural Library 
play an important role in assisting all stakeholders with 
understanding these issues.
    Porcine Virus Research.--The Committee is aware of ongoing 
research to identify mechanisms of viral pathogenesis, 
transmission, and immunity to porcine epidemic diarrhea virus 
(PEDv) and encourages ARS to continue its efforts to identify 
the genetic virulence factors of PEDv, identify a protective 
immune response, including transmission of maternal antibodies 
through the milk, and evaluate new vaccine platforms for the 
development of improved PEDv vaccines.
    Postharvest Dairy Research.--The Committee recognizes the 
importance of developing solutions to address agricultural 
postharvest inefficiencies to conserve limited resources and 
feed a growing population. The Committee encourages the 
development of postharvest technologies that decrease waste and 
improve resource use of protein, fat, and sugar in dairy 
processing.
    Potato Collaborative Research.--The Committee encourages 
ARS to continue to cooperate with the potato industry in 
conducting competitive research that responds directly to 
priorities identified and verified by the potato industry and 
engages both ARS, university and industry researchers in the 
research effort.
    Pulse Health Initiative.--The Committee is aware of the 
need to investigate the ability of pulse crops, such as dry 
beans, dry peas, lentils, and chickpeas, to provide solutions 
to critical health issues and to improve the sustainability and 
environmental benefits of using pulse crops in cropping 
rotations. The Committee encourages ARS to continue its work on 
these important issues.
    Roseau Cane.--The Committee directs ARS to work with the 
Animal and Plant Health Inspection Service (APHIS) and 
stakeholders to develop an integrated management program for 
control of the scale insect pest infestation that is destroying 
Roseau cane in the Mississippi River's Delta region along the 
Gulf of Mexico.
    Safe and Abundant Water Supply.--The Committee supports 
technological development to address key agricultural water 
resource issues across the U.S. to support agricultural 
production.
    Sage Grouse.--The Committee is aware that listing the 
greater sage grouse as endangered under the Endangered Species 
Act has the potential to negatively affect rural communities in 
the eleven states that have sage brush ecosystems. The 
Committee encourages ARS to work with its partners on sage 
brush and related rangeland research that will help preserve 
the greater sage grouse and the other species that rely on the 
sage brush ecosystem.
    Sclerotinia Initiative.--The Committee is aware of the 
importance of controlling Sclerotinia in sunflowers, soybeans, 
canola, edible beans, peanuts, peas, lentils, and chickpeas and 
encourages ARS to continue its support of this initiative.
    Small Grain Genomics.--The Committee supports research on 
small grain genomics to address national genomic and breeding 
needs for U.S. crops to keep small grains and feed as viable 
crops and continue their substantial contributions to the 
agricultural economy.
    Sorghum in Agriculture.--The Committee recognizes the 
growing significance of sorghum in agriculture due to water 
conservation traits and increased utilization. However, the 
sugarcane aphid (Melanaphis sacchari), a new and devastating 
invasive pest, is an existential threat to the sorghum 
industry. Funding is included to pursue research into the 
discovery of genetically conferred pest resistance, evaluate 
gene flow and advance the durability and sustainability of 
fitness traits in sorghum.
    U.S. Sheep Experiment Station (USSES).--The Committee 
recognizes the unique and valuable contributions the USSES 
makes toward increasing the production efficiency of sheep and 
improving sustainable rangeland ecosystems. The Committee also 
recognizes a unique opportunity to expand other research 
initiatives. The Committee encourages ARS to work with various 
stakeholders regarding efforts to propose mission improvements 
for the USSES.
    U.S. Wheat and Barley Scab (USWBS).--The Committee 
recognizes the importance of the research carried out through 
the ARS USWBS Initiative. Fusarium head blight is a major 
threat to agriculture, inflicting substantial yield and quality 
losses throughout the U.S.
    Wheat Falling Numbers Test Research.--The Committee 
recognizes the emerging crisis surrounding wheat starch 
degradation, as detected by the Hagberg-Perten Falling Numbers 
Test, and encourages ARS to continue researching the accuracy 
of the test and the environmental, storage, and generic 
conditions leading to this quality loss.
    Whitefly.--The Committee recognizes that whiteflies are an 
emerging pest as a result of developing resistance to many 
pesticides making chemical control difficult and climate 
variability resulting in warmer winters and lower seasonal die 
off. The Committee remains concerned with the whitefly, Bemisia 
tabaci, epidemic which is severely impacting vegetable and 
cotton production in the Southeast United States. In FY 2018, 
the Committee directed ARS and NIFA, in cooperation with land 
grant universities located in impacted states to develop and 
submit a plan of action to address the whitefly problem.

                        BUILDINGS AND FACILITIES

 
 
 
2018 appropriation....................................      $140,600,000
2019 budget estimate..................................             - - -
Provided in the bill..................................       136,000,000
Comparison:
    2018 appropriation................................        -4,600,000
    2019 budget estimate..............................      +136,000,000
 

                          COMMITTEE PROVISIONS

    For Agricultural Research Service, Buildings and 
Facilities, the Committee provides an appropriation of 
$136,000,000 for priorities identified in the updated USDA ARS 
Capital Investment Strategy.

               National Institute of Food and Agriculture

                   RESEARCH AND EDUCATION ACTIVITIES

 
 
 
2018 appropriation....................................      $887,171,000
2019 budget estimate..................................       794,479,000
Provided in the bill..................................       920,012,000
Comparison:
    2018 appropriation................................       +32,841,000
    2019 budget estimate..............................      +125,533,000
 

                          COMMITTEE PROVISIONS

    For Research and Education Activities, the Committee 
provides an appropriation of $920,012,000.
    Agricultural Research Enhancement Awards.--The Committee 
continues to direct that not less than 15 percent of the 
competitive research grant funds be used for USDA's agriculture 
research enhancement awards program, including USDA-EPSCoR, in 
accordance with 7 U.S.C. 450i.
    Animal Feed Pathogen.--The Committee is concerned that very 
little data exists on the level of pathogen in animal feed, nor 
the impact of those pathogen and the feed itself might have on 
the ultimate pathogen levels in food animals as they enter the 
human food system. The Committee encourages a comprehensive 
research effort to identify and address risk factors of 
foodborne pathogens in food animals, what roles feedstuffs have 
in the level of risk, and what processes might be introduced to 
reduce or eliminate pathogens in feedstuff.
    Bioactives and Prebiotics Used in Animal Production.--The 
Committee supports enhanced research efforts to advance the 
development of alternatives to sub-therapeutic doses of 
antibiotics used in animal production. The Committee encourages 
NIFA to examine nutritional alternatives and feed additives 
containing bioactives and prebiotics that may lead to reduced 
antibiotic use and boost immune responses in livestock.
    Centers of Excellence.--In 2015, on the occasion of the 
125th anniversary of the Second Morrill Act of 1890, USDA 
announced the establishment of three Ranches and Forest 
Landowners in high poverty areas, establish a virtual center to 
support the science, technology, engineering, agriculture, and 
mathematics (STEAM) pipeline of students to meet future 
workforce needs; and satisfy the nation's need in the areas of 
international engagement and global food security. The 
Committee believes that these Centers were an important and 
necessary commitment to the 1890 Universities and requests that 
the USDA in collaboration with the USDA-1890 Taskforce prepare 
a report for Congress within 90 days of enactment on how we can 
permanently establish these Centers and make them sustainable 
and fully functional. The Committee provides an additional 
$5,000,000 for the Centers for Excellence with Research at 1890 
Institutions (Evans-Allen Program).
    Citrus Disease Research Program.--The 2014 Farm Bill 
established the Emergency Citrus Disease Research and Extension 
Program, which is intended to discover and develop tools for 
early detection, control, and eradication of diseases and pests 
that threaten domestic citrus production and processing, and 
provided $25,000,000 per year in mandatory funding for the 
program through the Specialty Crop Research Initiative. The 
Committee believes research projects funded under this 
authority should be prioritized based on the critical threat of 
citrus greening and encourages NIFA, to the maximum extent 
practicable, to follow the recommendations of the National 
Agricultural Research, Extension, and Education Advisory 
Board's citrus disease subcommittee and to collaborate with the 
HLB MAC group.
    Crop Degradation.--The Committee is aware of crop 
degradation issues harming agricultural producers. For example, 
starch degradation in Pacific Northwest soft white wheat crops 
led to significant value losses for producers in late 2016. The 
Committee encourages NIFA to conduct research through AFRI into 
soft white wheat crop quality loss to mitigate its impact on 
producers.
    Increasing Diversity in Agricultural Career Fields.--The 
Committee is concerned with the low numbers of African 
Americans working in agricultural career fields such as 
farming, ranching, producing, IT, science, and finance. The 
Committee encourages NIFA to develop a working group that 
includes leadership from the 1860, 1890, and 1994 institutions 
within the land grant university system to develop an 
actionable plan aimed at increasing the number of minorities 
entering into the agricultural workforce. The Committee also 
recommends that the plan include strengthening agricultural 
education at the University level and creating partnerships for 
feeder programs into graduate studies to foster the career 
potential pipeline.
    Livestock and Poultry Waste Research.--The Committee 
recognizes the benefits of improved methods of managing animal 
waste in livestock and poultry production and encourages NIFA 
to support research and development of innovative technologies, 
particularly those that are operationally and economically 
feasible and have a high probability of widespread 
implementation. The Committee directs NIFA to submit a report 
on what steps it can take to work with other federal agencies 
to develop a comprehensive approach to all value chains related 
to manure management to include energy production, energy 
credits, nutrient credits, and mineral supplements, taking into 
consideration the full range of livestock production to include 
cattle, poultry, and swine.
    Minor Crop Pest Management.--The Committee recognizes that 
data collection efforts are needed to maintain and develop the 
tools needed to assure adequate vector control and protect 
public health. In addition, the Committee supports continuation 
of the IR-4 Public Health Pesticide Program through the 
Deployed Warfighter Protection Program to provide critical 
assistance for supporting vector control, including regulatory 
and other support needed to maintain public health.
    Mitigation of Foodborne Pathogens.--The Committee 
encourages USDA to continue the development of interventions 
that decrease the presence of Salmonella in the food supply, 
including working with the livestock and poultry sector to 
further develop on-farm intervention strategies.
    NIFA Program Authorities and Consolidation Report.--The 
Committee notes that the FY18 Consolidated Appropriations Act 
and report contains fifty appropriated lines covering the 
entirety of the agricultural research, education and extension 
realm. In addition, NIFA administers the Specialty Crop 
Research Initiative and Beginning Farmers and Ranchers Program. 
The Committee is concerned that some of these programs are 
duplicative or can be executed under the broad authorities of 
the Agriculture and Food Research Initiative, Evans-Allen 
Program, 1890's Extension, and Hatch and Smith-Lever Acts. In 
addition, the Committee notes that USDA's annual budget 
submission routinely proposes the elimination of many of the 
smaller NIFA programs. Accordingly, the Committee directs NIFA 
to provide a report by September 30, 2019 that details the 
authority under which each funded NIFA program is administered 
and whether that program (its goals or priorities), or the 
challenges each program is intended to address, can be achieved 
under the authorities of the Agriculture and Food Research 
Initiative, Evans-Allen Program, 1890's Extension, and Hatch 
and Smith-Lever Acts or other appropriate programs.
    Organic Agriculture.--The Committee encourages USDA to 
ensure that the needs of the U.S. organic sector are more fully 
addressed through AFRI. As USDA's flagship competitive 
agricultural research grant program, AFRI funding should be 
reflective of the needs of all aspects of U.S. agriculture, 
including organic. The Committee directs USDA to develop a plan 
for meeting this goal, including how the agency will ensure 
organic research conducted through AFRI is not duplicative of 
research conducted with mandatory funds through the Organic 
Agriculture Research and Extension Initiative and other 
research programs, and report back to the Committee within 60 
days of enactment of this Act.
    Research at Historically Black Colleges and Universities 
and Hispanic Serving Institutions.--The Committee encourages 
NIFA to continue to support biotechnology by promoting research 
at the land-grant colleges and universities, including the 
Historically Black Colleges and Universities and Hispanic 
Serving Institutions, and directs NIFA to encourage 
partnerships among universities and industry.
    Water Quality.--The Committee encourages USDA to research 
alternatives to land application of animal manures in areas 
where over-application is harming fresh water drinking 
supplies. The Committee also urges USDA to identify alternative 
collection and processing options to remove toxic elements and 
yield usable material.
    Zoonotic Disease Research.--The eradication of zoonotic 
livestock diseases has been a priority of federal and state 
animal health officials, as was reflected in the 2014 Farm 
Bill. The Committee recognizes the need for this research and 
encourages NIFA to support the development of improved 
management tools for zoonotic livestock diseases that have 
significant wildlife reservoirs.
    The following table reflects the amounts provided by the 
Committee:

                  NATIONAL INSTITUTE OF FOOD AND AGRICULTURE--RESEARCH AND EDUCATION ACTIVITIES
                                             [Dollars in Thousands]
----------------------------------------------------------------------------------------------------------------
                                                                                    2018       2019    Committee
               Program/activity                          Authorization            enacted    estimate  provision
----------------------------------------------------------------------------------------------------------------
Hatch Act....................................  7 U.S.C. 361a-i.................   $243,701   $243,238   $259,000
McIntire-Stennis Cooperative Forestry Act....  16 U.S.C. 582a through a-7......     33,961     28,867     36,000
Research at 1890 Institutions (Evans-Allen     7 U.S.C. 3222...................     54,185     53,817     60,000
 Program).
Payments to the 1994 Institutions............  7 U.S.C. 301 note...............      3,439      3,416      3,439
Education Grants for 1890 Institutions.......  7 U.S.C. 3152(b)................     19,336     19,205     19,336
Education Grants for Hispanic-Serving          7 U.S.C. 3241...................      9,219      9,156      9,219
 Institutions.
Education Grants for Alaska Native and Native  7 U.S.C. 3156...................      3,194      3,172      3,172
 Hawaiian-Serving Institutions.
Research Grants for 1994 Institutions........  7 U.S.C. 301 note...............      3,801      1,789      3,801
Capacity Building for Non Land-Grant Colleges  7 U.S.C. 3319i..................      5,000      - - -      5,000
 of Agriculture.
Grants for Insular Areas.....................  7 U.S.C. 3222b-2, 3362 and 3363.      2,000      1,986      2,000
Agriculture and Food Research Initiative.....  7 U.S.C. 450i(b)................    400,000    375,000    415,000
Veterinary Medicine Loan Repayment...........  7 U.S.C. 3151a..................      8,000      4,991      8,000
Veterinary Services Grant Program............  7 U.S.C. 3151b..................      2,500      - - -      2,500
Continuing Animal Health and Disease Research  7 U.S.C. 3195...................      4,000      - - -      4,000
 Program.
Supplemental and Alternative Crops...........  7 U.S.C. 3319d..................        825      - - -        825
Multicultural Scholars, Graduate Fellowship    7 U.S.C. 3152(b)................      9,000      - - -      9,000
 and Institution Challenge Grants.
Secondary and 2-year Post-Secondary Education  7 U.S.C. 3152(j)................        900      - - -        900
Aquaculture Centers..........................  7 U.S.C. 3322...................      5,000      - - -      5,000
Sustainable Agriculture Research and           7 U.S.C. 5811, 5812, 5831, and       35,000     19,009     30,000
 Education.                                     5832.
Farm Business Management.....................  7 U.S.C. 5925f..................      2,000      - - -      2,000
Sun Grant Program............................  7 U.S.C. 8114...................      3,000      - - -      3,000
Alfalfa and Forage Research Program..........  7 U.S.C. 5925...................      2,250      - - -      2,250
Minor Crop Pest Management (IR-4)............  7 U.S.C. 450i(c)................     11,913     11,832     11,913
Special Research Grants:.....................  7 U.S.C. 450i(c)................
    Global Change/UV Monitoring..............  ................................      1,405      - - -      1,400
    Potato Research..........................  7 U.S.C. 450i(c)................      2,500      - - -      2,500
    Aquaculture Research.....................  7 U.S.C. 450i(c)................      1,350      - - -      1,350
                                                                                --------------------------------
        Total, Special Research Grants.......  ................................      5,255      - - -      5,250
Necessary Expenses of Research and Education
 Activities:
    Grants Management Systems................  ................................      7,830      7,424      7,830
    GSA Rent and DHS Security Expenses.......  ................................      - - -      - - -      - - -
    Federal Administration--Other Necessary    ................................     11,862     11,577     11,577
     Expenses.
                                                                                --------------------------------
        Total, Necessary Expenses............  ................................     19,692     19,001     19,407
                                                                                ================================
            Total, Research and Education      ................................   $887,171   $794,479   $920,012
             Activities.
----------------------------------------------------------------------------------------------------------------

              NATIVE AMERICAN INSTITUTIONS ENDOWMENT FUND

 
 
 
2018 appropriation....................................     ($11,880,000)
2019 budget estimate..................................      (11,857,000)
Provided in the bill..................................      (11,880,000)
Comparison:
    2018 appropriation................................             - - -
    2019 budget estimate..............................           +23,000
 

                          COMMITTEE PROVISIONS

    For the Native American Institutions Endowment Fund, the 
Committee provides $11,880,000.

                          EXTENSION ACTIVITIES

 
 
 
2018 appropriation....................................      $483,626,000
2019 budget estimate..................................       450,185,000
Provided in the bill..................................       495,626,000
Comparison:
    2018 appropriation................................       +12,000,000
    2019 budget estimate..............................       +45,441,000
 

                          COMMITTEE PROVISIONS

    For Extension Activities, the Committee provides an 
appropriation of $495,626,000.
    Rural Health and Safety Education Programs.--The opioid 
abuse epidemic is one of the greatest threats facing rural 
America today, and the Committee supports all efforts to 
address this problem through improved health and safety 
education and outreach. The Committee provides $3,000,000 for 
Rural Health and Safety Education Programs to combat opioid 
abuse in rural communities.
    The following table reflects the amounts provided by the 
Committee:

                        NATIONAL INSTITUTE OF FOOD AND AGRICULTURE--EXTENSION ACTIVITIES
                                             [Dollars in Thousands]
----------------------------------------------------------------------------------------------------------------
                                                                                  FY 2018    FY 2019   Committee
               Program/activity                          Authorization            enacted    estimate  provision
----------------------------------------------------------------------------------------------------------------
Smith-Lever Act, Section 3(b) and (c)          7 U.S.C. 343(b) and (c) and        $300,000   $299,430   $315,000
 programs and Cooperative Extension.            208(c) of P.L. 93-471.
Extension Services at 1890 Institutions......  7 U.S.C. 3221...................     45,620     45,310     45,620
Extension Services at 1994 Institutions......  7 U.S.C. 343(b)(3)..............      6,446      4,416      6,446
Facility Improvements at 1890 Institutions...  7 U.S.C. 3222b..................     19,730     19,596     19,730
Renewable Resources Extension Act............  16 U.S.C. 1671 et. seq..........      4,060      - - -      4,060
Rural Health and Safety Education Programs...  7 U.S.C. 2662(i)................      3,000      - - -      3,000
Food Animal Residue Avoidance Database         7 U.S.C. 7642...................      2,500      1,242      2,500
 Program.
Women and Minorities in STEM Fields..........  7 U.S.C. 5925...................        400      - - -        400
Food Safety Outreach Program.................  7 U.S.C. 7625...................      7,000      4,966      5,000
Smith-Lever Act, Section 3(d):...............  7 U.S.C. 343(d).................  .........  .........  .........
    Food and Nutrition Education.............  ................................     67,934     55,100     67,934
    Farm Safety and Youth Farm Safety          ................................      4,610      - - -      4,610
     Education Programs.
    New Technologies for Agricultural          ................................      1,550      - - -      1,550
     Extension.
    Children, Youth, and Families at Risk....  ................................      8,395      8,338      8,395
    Federally Recognized Tribes Extension      ................................      3,039      3,018      3,039
     Program.
                                                                                --------------------------------
        Total, Section 3(d)..................  ................................     85,528     66,456     85,528
Necessary Expenses of Extension Activities:
    Agriculture in the K-12 Classroom........  7 U.S.C. 3152(j)................        552        548        552
    Federal Administration--Other Necessary    ................................      7,790      8,221      7,790
     Expenses for Extension Activities.
                                                                                --------------------------------
        Total, Necessary Expenses............  ................................      8,342      8,769      8,342
                                                                                ================================
            Total, Extension Activities......  ................................   $483,626   $450,185   $495,626
----------------------------------------------------------------------------------------------------------------

                         INTEGRATED ACTIVITIES

 
 
 
2018 appropriation....................................       $37,000,000
2019 budget estimate..................................        13,037,000
Provided in the bill..................................        37,000,000
Comparison:
    2018 appropriation................................             - - -
    2019 budget estimate..............................       +23,963,000
 

                          COMMITTEE PROVISIONS

    For Integrated Activities, the Committee provides an 
appropriation of $37,000,000.
    Food and Agriculture Defense Initiative.--The Committee 
supports the critical contributions that labs within the 
National Animal Health Laboratory Network (NAHLN), including 
those located at Colleges of Veterinary Medicine, make in 
responding to emerging threats to American agriculture. When 
expanding the network, the Committee encourages NIFA to take 
into consideration laboratories which would enhance the 
capacity for surveillance, monitoring, and response; the 
concentration of human and animal populations that are directly 
at risk; geography, ecology, and climate; evidence of active 
collaboration with, and support of, state animal health 
officials; and evidence of stakeholder support and engagement.
    The following table reflects the amounts provided by the 
Committee.

                        NATIONAL INSTITUTE OF FOOD AND AGRICULTURE--INTEGRATED ACTIVITIES
                                             [Dollars in Thousands]
----------------------------------------------------------------------------------------------------------------
                                                                                  FY 2018    FY 2019   Committee
               Program/activity                          Authorization            enacted    estimate  provision
----------------------------------------------------------------------------------------------------------------
Methyl Bromide Transition Program............  7 U.S.C. 7626...................     $2,000     $- - -     $2,000
Organic Transition Program...................  7 U.S.C. 7626...................      5,000      - - -      5,000
Regional Rural Development Centers...........  7 U.S.C. 450i(c)................      2,000      - - -      2,000
Food and Agriculture Defense Initiative......  7 U.S.C. 3351...................      8,000      - - -      8,000
Crop Protection/Pest Management Program......  7 U.S.C. 7626...................     20,000     13,037     20,000
                                                                                --------------------------------
    Total, Integrated Activities.............  ................................    $37,000    $13,037    $37,000
----------------------------------------------------------------------------------------------------------------

  Office of the Under Secretary for Marketing and Regulatory Programs

 
 
 
2018 appropriation....................................          $901,000
2019 budget estimate..................................           800,000
Provided in the bill..................................           901,000
Comparison:
    2018 appropriation................................             - - -
    2019 budget estimate..............................          +101,000
 

                          COMMITTEE PROVISIONS

    For the Office of the Under Secretary for Marketing and 
Regulatory Programs, the Committee provides an appropriation of 
$901,000.

               Animal and Plant Health Inspection Service

                         SALARIES AND EXPENSES

                     (INCLUDING TRANSFERS OF FUNDS)

 
 
 
2018 appropriation....................................      $981,893,000
2019 budget estimate..................................       739,151,000
Provided in the bill..................................       998,353,000
Comparison:
    2018 appropriation................................       +16,460,000
    2019 budget estimate..............................      +259,202,000
 

                          COMMITTEE PROVISIONS

    For the Animal and Plant Health Inspection Service, 
Salaries and Expenses, the Committee provides an appropriation 
of $998,353,000.
    The Committee provides increases for the following 
programs: $500,000 for Equine, Cervid, and Small Ruminant 
Health; $7,620,000 for Veterinary Diagnostics; $100,000 for 
Field Crop and Rangeland Ecosystems Pests; $10,843,000 for 
Specialty Crop Pests; and $2,000,000 for Overseas Technical and 
Trade Operations.
    Within the amount included for Specialty Crop Pests, the 
Committee includes $63,640,000 for fruit fly exclusion and 
detection; $61,000,000 for citrus health, including $3,000,000 
for the Huanglongbing Multi-Agency Coordination efforts; 
$21,000,000 for the glassy-winged sharpshooter; $6,318,000 for 
the pale cyst nematode; $6,500,000 for the light brown apple 
moth; $6,600,000 for the European grapevine moth; and 
$15,000,000 for spotted lanternfly.
    The following table reflects the amounts provided by the 
Committee:

                         [Dollars in Thousands]
------------------------------------------------------------------------
                                                           Committee
                                                           provision
------------------------------------------------------------------------
Animal Health Technical Services.....................            $37,857
Aquatic Animal Health................................              2,253
Avian Health.........................................             62,840
Cattle Health........................................             96,500
Equine, Cervid, and Small Ruminant Health............             20,500
National Veterinary Stockpile........................              5,725
Swine Health.........................................             24,800
Veterinary Biologics.................................             16,417
Veterinary Diagnostics...............................             47,160
Zoonotic Disease Management..........................             16,523
                                                      ------------------
    Subtotal, Animal Health..........................            330,575
Agricultural Quarantine Inspection (Appropriated)....             31,330
Cotton Pests.........................................             11,520
Field Crop & Rangeland Ecosystem Pests...............              9,426
Pest Detection.......................................             27,446
Plant Protection Methods Development.................             20,686
Specialty Crop Pests.................................            189,013
Tree & Wood Pests....................................             54,000
                                                      ------------------
    Subtotal, Plant Health...........................            343,421
Wildlife Damage Management...........................            108,376
Wildlife Services Methods Development................             18,856
                                                      ------------------
    Subtotal, Wildlife Services......................            127,232
Animal & Plant Health Regulatory Enforcement.........             16,224
Biotechnology Regulatory Services....................             18,839
                                                      ------------------
    Subtotal, Regulatory Services....................             35,063
Contingency Fund.....................................                470
Emergency Preparedness & Response....................             40,966
                                                      ------------------
    Subtotal, Safeguarding and Emergency Preparedness             41,436
Agriculture Import/Export............................             15,599
Overseas Technical and Trade Operations..............             24,115
                                                      ------------------
    Subtotal, Safe Trade & International Technical                39,714
     Assistance......................................
Animal Welfare.......................................             30,810
Horse Protection.....................................                705
                                                      ------------------
    Subtotal, Animal Welfare.........................             31,515
APHIS Information Technology Infrastructure..........              4,251
Physical/Operational Security........................              5,146
GSA Rental and DHS Security Payments.................             40,000
                                                      ------------------
    Subtotal, Agency Management......................             49,397
                                                      ==================
        Total, Salaries & Expenses...................           $998,353
------------------------------------------------------------------------

    Animal Welfare.--The bill provides $30,810,000 for the 
Animal Welfare program in order to ensure that minimum 
standards of care and treatment are provided for certain 
animals bred for commercial sale, used in research, transported 
commercially, or exhibited to the public. The Committee 
maintains the FY18 Consolidated Appropriation Act increase of 
$2,000,000, of which a majority of funds can be used to support 
the Memorandum of Understanding (MOU) between APHIS and ARS. 
The MOU enables APHIS to conduct annual compliance inspections 
of ARS facilities to ensure close alignment with regulations 
and standards of the Animal Welfare Act (AWA).
    Animal Welfare Inspection Records.--USDA ceased posting 
searchable records in February 2017 for the Animal Care 
Inspection System pending a comprehensive review of the 
information on its website. The Department has not acted in 
full on the results of that review nor provided sufficient 
rationale to withhold inspection information. APHIS is directed 
to utilize the resources provided in this bill to resume 
posting all records where legally permissible and provide 
searchable records without delay.
    Avian Health.--The Committee continues to provide 
$7,500,000 in the Avian Health line to help pay poultry growers 
and integrators for losses due to low pathogenic avian 
influenza.
    Antimicrobial Resistance.--The Committee continues to 
support funding to collect additional data that will inform 
policy related to the appropriate antibiotic use in all 
settings across agriculture and clinical medicine. The 
Committee provides funds for on-farm surveillance and data 
collection to enhance the understanding of on-farm levels of 
antibiotic use and the impact on antimicrobial resistance 
levels. The information collected should clearly delineate 
between antibiotics used for food-producing and companion 
animals. Further, to avoid duplication with existing programs 
like the National Antimicrobial Resistance Monitoring System 
(NARMS), the Committee expects surveys regarding on-farm usage 
to be limited to collecting information about the antibiotics 
used and should not be utilized for other regulatory purposes. 
In designing these surveys, the Committee expects the agency to 
work primarily with end-users of antibiotics and veterinarians 
providing care to the animals. The Agency is reminded that any 
information collected on-farm should be done through the 
National Animal Health Monitoring System (NAHMS) under the 
Confidential Information Protection and Statistical Efficiency 
Act to guarantee that all information collected is protected 
from release or distribution in a manner that could identify an 
individual respondent for the full time that the data is in 
existence. The Committee does not support the collection of any 
on-farm antibiotic use data, including biological sampling, or 
studies for resistance information unless stakeholder 
confidentiality is absolutely guaranteed and data security is 
strictly guarded.
    Aquatic Animal Health.--The Southeastern United States is a 
center for aquatic biodiversity, supporting hundreds of native 
species that occur nowhere else on Earth. It also is home to 
the vast majority of the pond-based aquaculture operations. The 
Southeast is the only region in the country that lacks a multi-
state/regional aquatic animal health plan. The Committee is 
aware of multiple pathogenic outbreaks both in wild waters and 
commercial ponds. Sick, abnormal, lesioned, or dead fish cause 
alarm among local citizens and sport fishers, lessen desire to 
go fishing and buy fishing licenses, raise doubts about clean 
water, discourage consumers from buying seafood, and tarnish 
the image of a tourism destination, thereby affecting local and 
regional economies. The Committee directs APHIS to work 
collaboratively with ARS, the National Marine Fisheries 
Service, the Fish and Wildlife Service, state resource 
managers, aquatic disease diagnostic labs, and academic 
institutions to develop a regional aquatic animal health plan 
including appropriate monitoring and detection.
    Cattle Fever Tick.--The Committee continues to provide 
$5,000,000 for all activities under the Cattle Fever Tick 
Eradication Program (CFTEP) related to eradication of fever 
ticks for livestock and wildlife hosts including but not 
limited to research, data management, infrastructure, and 
treatment.
    Cervid Health.--Funding is provided in the bill for the 
national, voluntary Herd Certification Program (HCP) and 
regulations for the interstate movement of farmed or captive 
deer, elk, and moose. The cervid industry continues to 
participate in the agency's HCP, which supports the domestic 
and international marketability of U.S. cervid herds. Funds are 
to be used for a combination of surveillance, research, and 
indemnification for culling herds where Chronic Wasting Disease 
(CWD) infection has been found. Currently the only reliable 
test is a brain biopsy. The agency is encouraged to utilize 
resources to help speed up the development of a live test for 
CWD that would greatly decrease the need for indemnity. The 
Committee encourages APHIS to maintain its commitment to the 
HCP and the cervid industry, and directs the agency to spend no 
less than $4,000,000 for cervid health activities. Within the 
funds provided, the agency should give consideration to 
indemnity payments if warranted.
    Citrus Health Response Program (CHRP).--CHRP is a national 
program for the pest and disease exclusion and eradication 
activities including those associated with HLB and its vector 
the Asian Citrus Psyllid. The survival of the citrus industry 
in the U.S. is dependent on this funding, which supports 
efforts in citrus-producing states to research, survey, and 
combat both the pest and the disease. In addition to the funds 
provided in this account, the Committee encourages APHIS to 
utilize the funds available in the Plant Pest and Disease 
Management and Disaster Prevention Programs account to the 
greatest extent possible in an attempt to sustain the economic 
viability of the citrus industry.
    Cost Sharing with States and Other Cooperators.--The 
Committee directs APHIS to maximize the use of cost-sharing 
agreements or matching requirements with states, territories, 
producers, foreign governments, non-governmental organizations, 
and any other recipient of services in order to reduce the cost 
burden on the agency.
    Cotton Pests.--The Committee encourages APHIS and the 
cotton industry to make every effort to ensure the boll weevil 
does not re-infest areas of the U.S. where it has been 
successfully eradicated. The Boll Weevil Eradication Program, 
an outstanding example of a public-private partnership, has 
successfully eradicated the boll weevil from all U.S. cotton-
producing regions except for the extreme lower parts of Texas 
in the Lower Rio Grande Valley (LRGV) bordering Tamaulipas, 
Mexico. Growers in the LRGV, with assistance from APHIS and the 
support of the entire industry, continue to conduct an active 
program to eradicate the boll weevil. The LRGV serves as the 
barrier between boll weevil infested areas of Mexico and boll 
weevil-free areas of the United States.
    Emergency Outbreaks.--The Committee continues to include 
specific language relating to the availability of funds to 
address emergencies related to the arrest and eradication of 
contagious or infectious diseases or pests of animals, poultry 
or plants. The Committee expects the Secretary to continue to 
use the authority provided in this bill to transfer funds from 
the CCC for the arrest and eradication of animal and plant 
pests and diseases that threaten American agriculture. By 
providing funds in this account, the Committee is enhancing, 
not replacing, the use of CCC funding for emergency outbreaks.
    Feral Swine Management.--Feral swine are found in at least 
41 states and have an estimated population of more than 
5,000,000. These invasive species cause more than 
$1,500,000,000 in damages and control costs in the United 
States each year, with at least $800,000,000 of this due to 
direct damage to agriculture. The Committee believes this 
damage assessment far underestimates the level of damage when 
considering the impact to the environment, native species, 
habitat, historic sites, and residential and commercial areas. 
The Committee supports APHIS' National Feral Swine Damage 
Management Program, which involves feral swine activities in 
the areas of research, development, education, outreach, and 
coordination. The Committee urges APHIS to spend no less than 
the amount provided in the FY18 Consolidated Appropriations Act 
and directs APHIS to use these funds to support its existing 
cooperative service agreement process, which identifies and 
develops unmet needs for feral swine control nationwide.
    Horse Protection Act.--The Committee has continually 
encouraged APHIS to work more closely with stakeholders 
pursuant to the HPA. Specifically, the agency has been directed 
to provide greater and more consistent transparency, to work 
more closely with stakeholders on rules and regulations, and to 
move away from the subjective nature of current inspection 
methods in favor of objective measurements. While the Committee 
recognizes some progress, the agency must work in good faith to 
address the Committee's requests, which are intended to further 
the dual goals of the HPA to care for animals engaged in the 
trade and promote the industry in a safe manner. The Committee 
reminds APHIS that any substantive changes to the statute or 
its intent should be made by Congress through the legislative 
process.
    Huanglongbing Emergency Response.--The Committee maintains 
the increased funding levels for HLB emergency response within 
the Specialty Crop Pests line item. The Committee encourages 
APHIS to allocate sufficient resources in order to continue 
vital management, control, and associated activities to address 
citrus greening. The disease, for which there is no cure, has 
caused a reduction in citrus production by over 60 percent 
since 2007 in Florida alone. All citrus producing counties in 
Texas are under quarantine, and California has found the Asian 
Citrus Psyllid, the vector of the disease, in some backyard 
trees but not in the commercial groves to date. The spread of 
this disease has called the future of the domestic citrus 
industry into question, costing thousands of jobs and millions 
of dollars in lost revenue. In addition, the agency is 
encouraged to support priorities and strategies identified by 
the HLB MAC group to benefit the citrus industry. The agency 
should appropriately allocate resources based on critical need 
and maximum effect to the citrus industry.
    The Committee provides $3,000,000 from within the total for 
citrus health to support priorities and strategies identified 
by the HLB MAC group. The MAC is focused on short-term 
solutions to help the citrus industry, and the cooperative 
nature of federal, state, and industry representatives in this 
group is expected to result in the development of tools and 
techniques to address this devastating disease. The MAC has 
been an effective resource in helping growers explore new 
possible solutions. The agency should appropriately allocate 
resources based on critical need and maximum impact to the 
citrus industry. These citrus health activities directly 
protect citrus production on approximately 711,000 acres in the 
United States worth more than $3,439,000,000 for the 2016-2017 
growing season.
    In and Out Bound Market Access Report.--This Administration 
is focused on trade deficits and the imbalance U.S. trade 
agreements have created for U.S. workers. As trade negotiations 
and WTO decisions take years to show results, APHIS has the 
most influence on day-to-day market expansion for U.S. 
agriculture. U.S. commodities face a long list of barriers to 
trade in the form of phytosanitary, pesticide residue levels, 
and inspection. APHIS works hard to resolve non-tariff and 
phytosanitary trade barriers that can cost U.S. producers 
millions of dollars in lost exports. The U.S. is an attractive 
market for foreign suppliers and granting foreign market access 
to the U.S. is a key to trade relations and lower consumer 
prices. While expanding market access for U.S. producers, the 
committee wants to ensure the U.S. is not unfairly creating an 
imbalance of foreign imports in the domestic market. To 
understand the cumulative gains and losses U.S. agriculture has 
had with USDA's policy decisions, the Committee directs APHIS 
to provide a report of the last three years on U.S. out-bound 
and foreign in-bound agricultural market access. The report 
should include the date access was granted and the in-bound and 
out-bound volumes shipped by country and commodity.
    Light Brown Apple Moth.-- The Committee encourages APHIS to 
engage state and international regulatory bodies to deregulate 
the light brown apple moth. The Committee is concerned that if 
APHIS simply withdraws federal regulation without the necessary 
work with other regulatory officials, APHIS will shift, not 
reduce, the regulatory burden. Should APHIS withdraw the 
federal order for the light brown apple moth, it must take 
steps to reduce the overall burden on growers. The Committee 
maintains flat funding for the light brown apple moth to 
support the second phase of the Joint Forward Plan and urges 
the Department to develop initiatives for permanent, ongoing 
departmental regulatory partnerships while continuing to engage 
stakeholders and trading partners throughout North America.
    National Animal Health Laboratory Network.--The 
laboratories within the NAHLN network are on the frontline for 
detection of newly identified and reemerging animal diseases. 
NAHLN laboratories provide a critical contribution to animal 
and public health. The bill provides funding for NAHLN through 
both APHIS and NIFA at approximately $12,000,000 and 
$4,300,000, respectively, resulting in a total investment of no 
less than $16,300,000 for fiscal year 2019. NAHLN laboratories 
were invaluable during the 2015 outbreak of HPAI, which 
significantly increased testing needs. At the same time, NAHLN 
laboratories must also continue testing for other animal 
diseases of concern.
    On-farm Data Collection.--The Committee supports efforts to 
address potential gaps in farm-specific antimicrobial 
resistance data. At the same time, the Agency is reminded that 
any information collected on-farm should be done through the 
National Animal Health Monitoring System (NAHMS) under the 
Confidential Information Protection and Statistical Efficiency 
Act to guarantee that all information collected is protected 
from release or distribution in a manner that could identify an 
individual respondent for the full time that the data is in 
existence. The Committee does not support the collection of any 
on-farm antibiotic use data, including biological sampling, or 
studies for resistance information unless stakeholder 
confidentiality is absolutely guaranteed and data security is 
strictly guarded.
    Orobanche Ramosa.-- The Committee recognizes that APHIS 
efforts to eradicate Orobanche ramosa, also known as branched 
broomrape, in Texas were not completely successful and has 
resulted in its reemergence as a threat to agriculture. As 
such, the Committee encourages that the Animal and Plant Health 
Inspection Service works with the appropriate Congressional 
Committees, along with states and local stakeholders to 
formulate and execute a plan, which will permanently eradicate 
the branched broomrape.
    Overseas Trade and SPS Disputes.--An increase of $2,000,000 
is provided for the Overseas Technical and Trade Operations 
account should help resolve sanitary and phytosanitary trade 
issues that could result in the opening of new markets and 
retaining and expanding existing market access for U.S. 
agricultural products.
    Potato Cyst Nematode Eradication.--The Committee includes 
funding to maintain resources for the potato cyst nematode 
eradication program at the FY18 Consolidated Appropriations Act 
level in order to continue with successful efforts to eradicate 
this pest. If left untreated, this pest could spread, affecting 
other crops.
    Regional Biosecurity Plans.--The Secretary of Agriculture 
shall submit to the Committees on Appropriations of the House 
and Senate, at the time the President's budget for fiscal year 
2020 is submitted under section 1105(a) of title 31, United 
States Code, a report describing the steps USDA has taken to 
implement the Regional Biosecurity Plan for Micronesia and 
Hawaii, as developed jointly by the Department and other 
federal and non-federal entities. The report shall include an 
update on previous and upcoming implementation activities, 
including estimates of additional funding to be used or needed 
for planned activities.
    Roseau Cane.--The Committee continues to have strong 
concerns with the invasive pest destroying roseau cane in much 
of the lower Mississippi River Delta and provides $600,000 
within the Field Crop and Rangeland Ecosystems Pest line for 
related control and eradication activities. The Roseau cane is 
a reed which serves as a critical means of preventing erosion 
of sensitive wetlands in the region.
    Spotted Lanternfly.--The Committee is concerned about the 
recent Spotted Lanternfly outbreak and provides no less than 
$15,000,000 within the Specialty Crop line item. This pest is 
native to southeast Asia, and is considered an invasive 
species. The Spotted Lanternfly has impacted 13 counties in 
eastern and southeastern Pennsylvania as well as surrounding 
states in the Mid-Atlantic states. The pest has already 
inflicted significant financial losses on agricultural 
producers and homeowners. Additionally, this pest has the 
potential to become a serious national and transnational trade 
issue as well. The Committee directs the APHIS to further 
examine efforts to combat this species.
    Vaccine for Foot-and-Mouth Disease (FMD).--FMD is a highly 
contagious viral disease eradicated from the U.S. in 1929, but 
it is still a threat since countries around the globe continue 
grappling with the disease. This disease could cause billions 
of dollars in damage to the economy if unchecked. APHIS has 
publicly stated that the FMD vaccine bank is insufficient to 
deal with a large scale FMD outbreak in the U.S., and that a 
larger vaccine bank is needed. APHIS has also noted that 
expanding the current FMD vaccine supply is an expensive 
investment. Having sufficient quantities of vaccine readily 
available and deployable to control an FMD outbreak would 
appear to be a critical part of the APHIS mission. Rapid 
control of FMD protects the security of the U.S. food supply, 
limiting the economic damage from livestock losses due to the 
disease, and also shortens disruptions to trade and commerce 
that would occur as long as FMD goes uncontrolled due to a lack 
of vaccine. The Committee is concerned that this potential 
vaccine shortage could result in the compromised management of 
an FMD outbreak in the United States. In order that the 
Committee can better understand the budget implications 
required to address this vaccine shortage, APHIS is directed to 
report to the Committees within 90 days of enactment of this 
Act on contingency plans to develop an expanded vaccine bank 
and the estimated funding necessary for implementation and 
maintenance.
    Wildlife Damage Management.--While receiving support from 
cooperators to conduct wildlife management operations, special 
emphasis should be placed on those areas such as oral rabies 
vaccination, livestock protection, predator damage management 
for avian predators such as the blackbird and raven in Western 
states and cormorants in the south, and other such activities 
that will reduce or eliminate threats to agricultural 
industries. The Committee expects APHIS to provide no less than 
$28,000,000 for the national rabies management, surveillance, 
and eradication efforts. No less than $250,000 is provided for 
the agency to reduce blackbird depredation in the Northern 
Great Plains.
    Of particular concern is the continued and repeat 
depredation by wolves and packs in the Pacific Northwest. In 
certain states where state management plans require state 
agencies to utilize lethal control of wolves, it is important 
these actions are taken to protect livestock. As experts in the 
field of managing predators to prevent depredation, USDA has 
valuable knowledge, tools and resources that can assist states 
in managing the federally reintroduced wolves. The Committee 
directs USDA to prioritize and complete the documentation and 
processes needed to allow them to assist states and local 
livestock producers with managing this situation.

                        BUILDINGS AND FACILITIES

 
 
 
2018 appropriation....................................        $3,175,000
2019 budget estimate..................................         2,852,000
Provided in the bill..................................         3,175,000
Comparison:
    2018 appropriation................................             - - -
    2019 budget estimate..............................          +323,000
 

                          COMMITTEE PROVISIONS

    For Buildings and Facilities of the Animal and Plant Health 
Inspection Service, the Committee provides $3,175,000.

                     Agricultural Marketing Service

                           MARKETING SERVICES

 
 
 
2018 appropriation....................................      $151,595,000
2019 budget estimate..................................       118,617,000
Provided in the bill..................................       153,095,000
Comparison:
    2018 appropriation................................        +1,500,000
    2019 budget estimate..............................       +34,478,000
 

                          COMMITTEE PROVISIONS

    For Marketing Services of the Agricultural Marketing 
Service (AMS), the Committee provides an appropriation of 
$153,095,000. This amount includes an increase of $2,000,000 
for the continued implementation of the National Bioengineered 
Food Disclosure Standard.
    Grading Services.--A lack of access to USDA graders for 
poultry and meat processing is disruptive to economic growth 
and development in rural communities. The Committee urges AMS 
to reevaluate its work with States and institutions of higher 
education to more adequately distribute graders to underserved 
rural communities.
    National Organic Program (NOP).--There continues to be 
concern about fraud in the organic program, especially among 
imports. Therefore, the Committee provides an increase of 
$1,500,000 for the NOP to strengthen enforcement of organic 
labeling. The Committee notes that an additional $3,000,000 was 
provided for the NOP in the FY18 Consolidated Appropriations 
Act to focus on robust fraud detection and oversight within the 
program. AMS is directed to continue providing the Committee 
with timely updates on investigations of fraud in organic 
markets.
    Rural Infrastructure.--Inadequate market access is a 
critical barrier to economic growth in rural and agricultural 
communities. The Committee provides $1,000,000 for the 
Transportation Services Division to continue working with other 
federal, state, and local agencies, as well as producers and 
those involved in all sectors of agriculture to address rural 
infrastructure needs.

                 LIMITATION ON ADMINISTRATIVE EXPENSES

 
 
 
2018 limitation.......................................     ($61,227,000)
2019 budget limitation................................      (60,982,000)
Provided in the bill..................................      (61,227,000)
Comparison:
    2018 limitation...................................             - - -
    2019 budget limitation............................          +245,000
 

                          COMMITTEE PROVISIONS

    The Committee provides a limitation of $61,227,000 on 
Administrative Expenses of the Agricultural Marketing Service.

    FUNDS FOR STRENGTHENING MARKETS, INCOME, AND SUPPLY (SECTION 32)

                     (INCLUDING TRANSFERS OF FUNDS)

 
 
 
2018 appropriation....................................     ($20,705,000)
2019 budget estimate..................................      (20,489,000)
Provided in the bill..................................      (20,705,000)
Comparison:
    2018 appropriation................................             - - -
    2019 budget estimate..............................          +216,000
 

                          COMMITTEE PROVISIONS

    For the Marketing Agreements and Orders Program, the 
Committee provides a transfer from Section 32 funds of 
$20,705,000.
    The following table reflects the status of this fund for 
fiscal years 2018 and 2019:

ESTIMATED TOTAL FUNDS AVAILABLE AND BALANCE CARRIED FORWARD FISCAL YEARS
                                2018-2019
                         [Dollars in thousands]
------------------------------------------------------------------------
                                                           Committee
                                     FY 2018 enacted       provision
------------------------------------------------------------------------
Appropriation (30% of Customs             $10,370,878        $10,624,198
 Receipts)........................
Less Transfers:
    Food & Nutrition Service......         -8,872,010         -9,092,218
    Commerce Department...........           -154,868           -157,980
                                   -------------------------------------
        Total, Transfers..........         -9,026,878         -9,250,198
Prior Year Appropriation                      125,000              - - -
 Available, Start of Year.........
Transfer of Prior Year Funds to              -125,000              - - -
 FNS (F&V)........................
    Budget Authority, Farm Bill...          1,344,000          1,374,000
Rescission of Current Year Funds..              - - -              - - -
Appropriations Temporarily                    -77,418            -74,400
 Reduced--Sequestration...........
Unavailable for Obligations (F&V                - - -              - - -
 Transfer to FNS).................
                                   -------------------------------------
    Budget Authority,                       1,266,582          1,299,600
     Appropriations Act...........
Less Obligations:
    Child Nutrition Programs                  465,000            485,000
     (Entitlement Commodities)....
    State Option Contract.........              5,000              5,000
    Removal of Defective                        2,500              2,500
     Commodities..................
    Emergency Surplus Removal.....                  0                  0
    Disaster Relief...............              5,000              5,000
    Additional Fruits, Vegetables,            206,000            206,000
     and Nuts Purchases...........
    Fresh Fruit and Vegetable                 172,000            174,000
     Program......................
    Estimated Future Needs........            354,524            365,542
                                   -------------------------------------
        Total, Commodity                    1,210,024          1,243,042
         Procurement..............
    Administrative Funds:
        Commodity Purchase Support             35,853             35,853
        Marketing Agreements and               20,705             20,705
         Orders...................
                                   -------------------------------------
            Total, Administrative              56,558             56,558
             Funds................
                                   =====================================
    Total Obligations.............          1,266,582          1,299,600
------------------------------------------------------------------------

                   PAYMENTS TO STATES AND POSSESSIONS

 
 
 
2018 appropriation....................................        $1,235,000
2019 budget estimate..................................         1,109,000
Provided in the bill..................................         1,235,000
Comparison:
    2018 appropriation................................             - - -
    2019 budget estimate..............................          +126,000
 

                          COMMITTEE PROVISIONS

    For Payments to States and Possessions, the Committee 
provides an appropriation of $1,235,000.

        LIMITATION ON INSPECTION AND WEIGHING SERVICES EXPENSES

 
 
 
2018 limitation.......................................     ($55,000,000)
2019 budget limitation................................      (80,000,000)
Provided in the bill..................................      (55,000,000)
Comparison:
    2018 limitation...................................             - - -
    2019 budget limitation............................       -25,000,000
 

                          COMMITTEE PROVISIONS

    The Committee includes a limitation on inspection and 
weighing services expenses of $55,000,000.

             Office of the Under Secretary for Food Safety

 
 
 
2018 appropriation....................................          $800,000
2019 budget estimate..................................           800,000
Provided in the bill..................................           800,000
Comparison:
    2018 appropriation................................             - - -
    2019 budget estimate..............................             - - -
 

                          COMMITTEE PROVISIONS

    For the Office of the Under Secretary for Food Safety, the 
Committee provides an appropriation of $800,000.

                   Food Safety and Inspection Service

 
 
 
2018 appropriation....................................    $1,056,844,000
2019 budget estimate..................................     1,032,273,000
Provided in the bill..................................     1,049,344,000
Comparison:
    2018 appropriation................................        -7,500,000
    2019 budget estimate..............................       +17,071,000
 

                          COMMITTEE PROVISIONS

    For the Food Safety and Inspection Service (FSIS), the 
Committee provides an appropriation of $1,049,344,000.
    The following table reflects the Committee's 
recommendations for fiscal year 2019:

                   FOOD SAFETY AND INSPECTION SERVICE
                         [Dollars in Thousands]
------------------------------------------------------------------------
                                                         Recommendation
------------------------------------------------------------------------
Federal Inspection....................................          $936,324
Public Health Data Communication Infrastructure System            34,580
International Food Safety and Inspection..............            16,758
State Food Safety and Inspection......................            61,682
                                                       -----------------
    Total, Food Safety and Inspection Service.........        $1,049,344
------------------------------------------------------------------------

    Humane Methods of Slaughter.--FSIS shall ensure that 
inspectors hired with funding previously specified for 
enforcement under the Humane Methods of Slaughter Act focus 
their attention on overseeing compliance with humane handling 
rules for live animals as they arrive and are offloaded and 
handled in pens, chutes, and stunning areas, and that all 
inspectors receive robust national training, including on the 
Regulatory Essentials, Humane Animal Tracking System, and 
Public Health Information System.
    Siluriformes Inspection.--Since implementing the 
Siluriformes inspection program, FSIS has conducted numerous 
inspections and has prevented more than 1.4 million pounds of 
adulterated or ineligible product from entering the U.S. food 
supply. FSIS has exceeded the number of inspections and 
findings by the FDA that previously had jurisdiction over the 
program. Given these results, the Committee continues to fully 
fund Siluriformes inspection activities and expects FSIS to 
comply with the provisions in the FY18 Consolidated 
Appropriations Act in determining equivalency for all countries 
wishing to continue exporting product to the United States.

                                TITLE II

               FARM PRODUCTION AND CONSERVATION PROGRAMS

   Office of the Under Secretary for Farm Production and Conservation

 
 
 
2018 appropriation....................................          $901,000
2019 budget estimate..................................           875,000
Provided in the bill..................................           901,000
Comparison:
    2018 appropriation................................             - - -
    2019 budget estimate..............................           +26,000
 

                          COMMITTEE PROVISIONS

    For the Office of the Under Secretary for Farm Production 
and Conservation (FPAC), the Committee provides an 
appropriation of $901,000.
    Reorganization.--The Committee is supportive of the 
Secretary's reorganization of the FPAC mission area, as 
reflected in the FY18 Consolidated Appropriations Act. The 
Committee directs the Under Secretary to provide briefings 
during fiscal year 2018 on preliminary strategies and plans for 
the reorganization related to the consolidation, co-location, 
relocation, and closure of field offices and staff; progress 
made on the development and implementation of the FPAC Business 
Center; and the development and combination of information 
technology systems, specifically farm program modernization.

            Farm Production and Conservation Business Center

                         SALARIES AND EXPENSES

 
 
 
2018 appropriation....................................        $1,028,000
2019 budget estimate..................................       196,402,000
Provided in the bill..................................       115,402,000
Comparison:
    2018 appropriation................................      +114,374,000
    2019 budget estimate..............................       -81,000,000
 

                          COMMITTEE PROVISIONS

    For the Farm Production and Conservation Business Center, 
the Committee provides an appropriation of $115,402,000.

                          Farm Service Agency

                         SALARIES AND EXPENSES

                     (INCLUDING TRANSFERS OF FUNDS)

----------------------------------------------------------------------------------------------------------------
                                                                              Transfer from
                                                           Appropriation     program accounts    Total, FSA S&E
----------------------------------------------------------------------------------------------------------------
2018 appropriation.....................................     $1,202,146,000     ($317,610,000)   ($1,519,756,000)
2019 budget estimate...................................        920,490,000      (266,913,000)    (1,187,403,000)
Provided in the Bill...................................      1,095,769,000      (304,722,000)    (1,400,491,000)
Comparison:
    2018 appropriation.................................       -106,377,000        -12,888,000     -(119,265,000)
    2019 budget estimate...............................      +$175,279,000       +$37,809,000    +($213,088,000)
----------------------------------------------------------------------------------------------------------------

                          COMMITTEE PROVISIONS

    For Salaries and Expenses of the Farm Service Agency (FSA), 
the Committee provides an appropriation of $1,095,769,000 and 
transfers of $304,722,000, for a total program level of 
$1,400,491,000.
    The Committee provides for the Secretary's reorganization 
of the FPAC mission area by moving funding for FSA's 
administrative activities to the FPAC Business Center. The 
Committee provides an increase for the FPAC information portal.
    Tree Assistance Program.-- The Committee recognizes that 
The Agricultural Act of 2014 authorized the Tree Assistance 
Program (TAP) to provide financial assistance to eligible 
orchardists and nursery tree growers to replant or rehabilitate 
eligible trees, bushes, and vines lost by natural disasters. To 
be considered eligible for the TAP program, trees, bushes, or 
vines must have suffered more than a 15 percent mortality loss 
in a stand due to a natural disaster. This 15 percent mortality 
test per stand prevents many growers from being considered for 
the program. The FY18 Consolidated Appropriations Act provided 
a pilot program that lowered the mortality rate to 7.5 percent 
for pecan trees. The Committee supports finding a more 
reasonable morality rate for all trees, bushes, and vines under 
the TAP.
    Foreign Land Ownership.--The Committee directs the 
Department to provide a report that analyzes the impact (in 
conjunction with other USDA agencies) of foreign persons 
acquiring, transferring, and holding agricultural land on 
family farms and rural communities.
    Verification of Eligibility.--To further improve agency 
controls that help prevent payments to participants whose 
incomes exceed eligibility limits, the Committee encourages, to 
the maximum extent practicable, FSA to implement a process to 
verify that accountants' and attorneys' statements accurately 
reflect participants' incomes as reported on income tax returns 
and supporting documentation or other equivalent documents.
    FSA Workflow Management.--The Secretary is directed to fill 
vacant employee positions across FSA due to the current hiring 
freeze and attrition to ensure full customer service at county 
offices as provided through adequate funding levels in the 
current and prior fiscal years. Any changes to the FSA county 
office structure shall be done in consultation with the 
Committees on Appropriations and based upon a workflow analysis 
with objective criteria of producer and county employee needs 
and convenience.

                         STATE MEDIATION GRANTS

 
 
 
2018 appropriation....................................        $3,904,000
2019 budget estimate..................................         3,228,000
Provided in the bill..................................         3,228,000
Comparison:
    2018 appropriation................................          -676,000
    2019 budget estimate..............................             - - -
 

                          COMMITTEE PROVISIONS

    For State Mediation Grants, the Committee provides an 
appropriation of $3,228,000.

               GRASSROOTS SOURCE WATER PROTECTION PROGRAM

 
 
 
2018 appropriation....................................        $6,500,000
2019 budget estimate..................................             - - -
Provided in the bill..................................         6,500,000
Comparison:
    2018 appropriation................................             - - -
    2019 budget estimate..............................        +6,500,000
 

                          COMMITTEE PROVISIONS

    For the Grassroots Source Water Protection Program, the 
Committee provides an appropriation of $6,500,000.

                        DAIRY INDEMNITY PROGRAM

                     (INCLUDING TRANSFER OF FUNDS)

 
 
 
2018 appropriation....................................       \1\$500,000
2019 budget estimate..................................        \1\500,000
Provided in the bill..................................        \1\500,000
Comparison:
    2018 appropriation................................             - - -
    2019 budget estimate..............................             - - -
 
\1\Current indefinite appropriation.

                          COMMITTEE PROVISIONS

    For the Dairy Indemnity Program, the Committee provides an 
appropriation of such sums as may be necessary (estimated to be 
$500,000 in the President's fiscal year 2019 budget request).

           AGRICULTURAL CREDIT INSURANCE FUND PROGRAM ACCOUNT

                     (INCLUDING TRANSFERS OF FUNDS)

                         ESTIMATED LOAN LEVELS

 
 
 
2018 loan level.......................................    $8,005,610,000
2019 budget estimate..................................     7,617,668,000
Provided in the bill..................................     7,987,668,000
Comparison:
    2018 loan level...................................       -17,942,000
    2019 budget estimate..............................      +370,000,000
 

                          COMMITTEE PROVISIONS

    For the Agricultural Credit Insurance Fund program account, 
the Committee provides a loan level of $7,987,668,000.
    The Committee provides a transfer of $16,081,000 to the 
FPAC Business Center account for administrative expenses and 
provides $11,600,000 available until September 30, 2020 for the 
hiring of additional farm loan officers to meet borrower demand 
and the servicing of loans.
    Foreign Recipients of Farm Loans.--The Committee directs 
the Department to track guaranteed and direct loan applications 
for farm real estate loans for foreign held land.
    The following table reflects the loan levels for the 
Agricultural Credit Insurance Fund program account:

                                    AGRICULTURE CREDIT PROGRAMS--LOAN LEVELS
                                             [Dollars in Thousands]
----------------------------------------------------------------------------------------------------------------
                                                                                                   Committee
                                                        FY 2018 enacted    FY 2019 estimate        provision
----------------------------------------------------------------------------------------------------------------
Farm Loan Programs
    Farm Ownership:
        Direct......................................          $1,500,000          $1,500,000          $1,500,000
        Unsubsidized Guaranteed.....................           2,750,000           2,750,000           2,750,000
    Farm Operating:
        Direct......................................           1,530,000           1,500,000           1,530,000
        Unsubsidized Guaranteed.....................           1,960,000           1,600,000           1,960,000
    Emergency Loans.................................              25,610              37,668              37,668
    Indian Tribe Land Acquisition Loans.............              20,000              20,000              20,000
    Conservation Loans:
        Unsubsidized Guaranteed.....................             150,000             150,000             150,000
    Indian Highly Fractionated Land.................              10,000               - - -              10,000
    Boll Weevil Eradication.........................              60,000              60,000              30,000
                                                     -----------------------------------------------------------
        Total.......................................          $8,005,610          $7,617,668          $7,987,668
----------------------------------------------------------------------------------------------------------------

                            ESTIMATED LOAN SUBSIDY AND ADMINISTRATIVE EXPENSES LEVELS
                                             [Dollars in Thousands]
----------------------------------------------------------------------------------------------------------------
                                                               Direct loan     Guaranteed loan   Administrative
                                                                 subsidy           subsidy          expenses
----------------------------------------------------------------------------------------------------------------
2018 appropriation........................................           $61,812           $21,756          $325,068
2019 budget estimate......................................            58,500            17,280           292,587
Provided in the Bill......................................            59,670            21,168           328,268
Comparison:
    2018 appropriation....................................            -2,142              -588            +3,200
    2019 budget estimate..................................           +$1,170           +$3,888          +$35,681
----------------------------------------------------------------------------------------------------------------

    The following table reflects the costs of loan programs 
under credit reform:

            AGRICULTURE CREDIT PROGRAMS--SUBSIDIES AND GRANTS
                         [Dollars in Thousands]
------------------------------------------------------------------------
                                   FY 2018       FY 2019      Committee
                                   enacted      estimate      provision
------------------------------------------------------------------------
Farm Loan Subsidies
    Farm Operating:
        Direct................       $61,812       $58,500       $59,670
        Unsubsidized                  21,756        17,280        21,168
         Guaranteed...........
    Emergency Loans...........         1,260         1,567         1,567
    Indian Highly Fractionated         2,272         - - -         2,134
     Land.....................
                               -----------------------------------------
        Total.................        87,100        77,347        84,539
ACIF Expenses:
    Salaries and Expenses.....       314,998       266,436       302,117
    Administrative Expenses...        10,070        10,070        10,070
    FPAC Business Center               - - -        16,081        16,081
     Salaries and Expenses....
                               -----------------------------------------
        Total, ACIF Expenses..      $325,068      $292,587      $328,268
------------------------------------------------------------------------

                         Risk Management Agency

                         SALARIES AND EXPENSES

 
 
 
2018 appropriation....................................       $74,829,000
2019 budget estimate..................................     \1\37,942,000
Provided in the bill..................................        75,419,000
Comparison:
    2018 appropriation................................          +590,000
    2019 budget estimate..............................       +37,477,000
 
\1\Does not include $20,000,000 from mandatory funding.

                          COMMITTEE PROVISIONS

    For the Risk Management Agency, the Committee provides an 
appropriation of $75,419,000.
    Tribal Crop Insurance.--The Committee directs the 
Department to conduct a study on the applicability of current 
crop insurance programs, guidance documents, and outreach to 
tribal producers.

                       Natural Resources Service

                        CONSERVATION OPERATIONS

 
 
 
2018 appropriation....................................      $874,107,000
2019 budget estimate..................................       669,033,000
Provided in the bill..................................       890,293,000
Comparison:
    2018 appropriation................................       +16,186,000
    2019 budget estimate..............................      +221,260,000
 

                          COMMITTEE PROVISIONS

    For Conservation Operations, the Committee provides an 
appropriation of $890,293,000.
    The Committee provides $9,400,000 for the Snow Survey and 
Water Forecasting Program; $9,481,000 for the Plant Materials 
Centers; and $80,500,000 for the Soil Surveys Program. The 
Committee provides $790,912,000 for Conservation Technical 
Assistance. The Committee provides an increase of nearly 
$16,500,000 for Conservation Technical Assistance, including 
the $5,000,000 requested in the President's Budget for 
information technology investments to focus on improved 
customer service.
    Agricultural Conservation Easement Program.--Due to the 
unique ecological needs of each state, the Committee encourages 
NRCS to work with state and local partners to address these 
needs and to ensure the priority needs and projects in each 
state, such as those that are leveraged by public and private 
resources, are addressed.
    Cheat Grass Eradication.--The Committee encourages NRCS to 
continue to assist farmers and ranchers to eradicate, control, 
and reduce the fuel loads associated with cheat grass and to 
collaborate with ARS, as appropriate, on research related to 
cheat grass.
    Community Colleges.--The Committee encourages NRCS to 
collaborate with our nation's community colleges for the 
advancement of agriculture and the adoption of technology and 
conservation practices among producers and landowners. NRCS 
should target specific funds to highlight the special 
contributions that community colleges can provide in terms of 
technical assistance, demonstration, and applied research that 
is available through their agriculture programs.
    Floodplain Buyouts.--The Committee commends the successful 
efforts of NRCS with voluntary floodplain homeowner buyout 
projects. The Committee encourages the NRCS to continue 
collaborative efforts with participating towns and counties to 
mitigate unintended consequences resulting from buyouts, such 
as utility cost increases for homeowners in these regions.
    Harmful Algal Blooms.--The Committee supports NRCS' ongoing 
work to prevent soil erosion leading to harmful algal blooms 
through the introduction of cover crops and encourages 
continued targeting of watersheds where harmful algal blooms 
pose a threat.
    Herbicide Resistance.--The Committee reminds NRCS of the 
challenges many producers are facing due to the spread of 
herbicide-resistant weeds and encourages it to ensure agency 
staff, partners, and producers are aware of conservation 
practice standards, conservation activity plans to address 
herbicide-resistant weeds, and financial assistance available 
through conservation programs to assist producers in their 
efforts to control these weeds.
    Locally Led Conservation.--The Committee recognizes that 
locally led conservation is the foundation of the nation's 
highly successful legacy of conservation and encourages NRCS to 
work with state, tribal, local, and other partners on voluntary 
stewardship projects that preserve working agricultural lands 
while protecting watersheds and wildlife habitat. The Committee 
also directs NRCS to provide flexibility to State Conservation 
Officers in determining human resource needs.
    Milkweed.--The Committee is concerned about the rapid 
decline in milkweed for monarch butterfly habitat. The 
Committee encourages NRCS to consider the increased benefits of 
restoring milkweed for monarch habitat in fiscal year 2019.
    National Marine Sanctuaries.--The Committee urges the 
agency to continue the collaborative agreement with the Office 
of National Marine Sanctuaries to address sources of 
agricultural runoff, such as sediments, nitrates, and 
pesticides.
    Regional Conservation Partnership Program (RCPP).--The 
Committee commends NRCS for the success of RCPP, through which 
NRCS provides assistance to producers through partnership 
agreements, program contracts, or easement agreements. These 
programs allow for diverse and innovative conservation projects 
which leverage both public and private funding. The Committee 
encourages NRCS to consider the needs of organic farmers, who 
implement a wide variety of creative methods to improve water 
quality and enhance the environment, while implementing RCPP.
    Resource Conservation and Development Councils (RC&Ds).--
The Committee recognizes RC&Ds have been valuable partners in 
conservation and encourages NRCS to continue working with local 
councils, as appropriate, to ensure conservation programs meet 
local resource needs.
    Sage Grouse Initiative.--The Committee supports NRCS' sage 
grouse conservation efforts. Through the initiative, NRCS 
provides technical and financial assistance to help landowners 
conserve sage grouse habitat on their land. The initiative is 
an integral part of efforts by federal agencies, several 
western states, and private landowners to help preclude the 
listing of the sage grouse as an endangered species.
    Sustainable Water Use.--Increasing water demand has raised 
concerns about the sustainability of agricultural water 
resources in the United States. The Committee believes 
sustainable water resources research focused on crop drought 
resistance, watershed modelling and developing efficient 
sensor-based irrigation systems will help to mitigate the 
effects of increases in demand. The Committee encourages the 
Department to work with academia in these areas to develop new 
conservation and irrigation techniques to reduce water usage in 
agriculture production.

               WATERSHED AND FLOOD PREVENTION OPERATIONS

 
 
 
2018 appropriation....................................      $150,000,000
2019 budget estimate..................................             - - -
Provided in the bill..................................       150,000,000
Comparison:
    2018 appropriation................................             - - -
    2019 budget estimate..............................      +150,000,000
 

                          COMMITTEE PROVISIONS

    For the Watershed and Flood Prevention Operations, the 
Committee provides an appropriation of $150,000,000.

                    WATERSHED REHABILITATION PROGRAM

 
 
 
2018 appropriation....................................       $10,000,000
2019 budget estimate..................................             - - -
Provided in the bill..................................        10,000,000
Comparison:
    2018 appropriation................................             - - -
    2019 budget estimate..............................       +10,000,000
 

                          COMMITTEE PROVISIONS

    For the Watershed Rehabilitation Program, the Committee 
provides an appropriation of $10,000,000.

                              CORPORATIONS

                Federal Crop Insurance Corporation Fund

 
 
 
2018 appropriation..................................   \1\$8,913,000,000
2019 budget estimate................................    \1\8,687,000,000
Provided in the bill................................    \1\8,687,000,000
Comparison:
    2018 appropriation..............................        -226,000,000
    2019 budget estimate............................               - - -
 
\1\Current indefinite appropriation.

                          COMMITTEE PROVISIONS

    For the Federal Crop Insurance Corporation Fund, the 
Committee provides an appropriation of such sums as may be 
necessary (estimated to be $8,687,000,000 in the President's 
fiscal year 2019 budget request).

                   Commodity Credit Corporation Fund

                 REIMBURSEMENT FOR NET REALIZED LOSSES

                     (INCLUDING TRANSFERS OF FUNDS)

 
 
 
2018 appropriation................................    \1\$14,284,847,000
2019 budget estimate..............................     \1\15,410,000,000
Provided in the bill..............................     \1\15,410,000,000
Comparison:
    2018 appropriation............................        +1,125,153,000
    2019 budget estimate..........................                 - - -
 
\1\Current indefinite appropriation.

                          COMMITTEE PROVISIONS

    For Reimbursement for Net Realized Losses to the Commodity 
Credit Corporation, the Committee provides such sums as may be 
necessary to reimburse for net realized losses sustained but 
not previously reimbursed (estimated to be $15,410,000,000 in 
the President's fiscal year 2019 budget request).

                       HAZARDOUS WASTE MANAGEMENT

                        (LIMITATION ON EXPENSES)

 
 
 
2018 limitation.......................................      ($5,000,000)
2019 budget estimate..................................       (5,000,000)
Provided in the bill..................................       (5,000,000)
Comparison:
    2018 limitation...................................             - - -
    2019 budget estimate..............................             - - -
 

                          COMMITTEE PROVISIONS

    For Hazardous Waste Management, the Committee provides a 
limitation of $5,000,000.

                               TITLE III

                       RURAL DEVELOPMENT PROGRAMS

                Rural Development Salaries and Expenses

                     (INCLUDING TRANSFERS OF FUNDS)

----------------------------------------------------------------------------------------------------------------
                                                                                                   Committee
                                                          FY 2018 enacted    FY 2019 estimate      provision
----------------------------------------------------------------------------------------------------------------
Appropriations.........................................       $230,835,000       $156,054,000       $236,835,000
Transfer from:
    Rural Housing Insurance Fund Program Account.......        412,254,000        244,249,000        412,254,000
    Rural Community Facilities Program Account.........              - - -        147,591,000              - - -
    Rural Development Loan Fund Program Account........          4,468,000              - - -          4,468,000
    Rural Electrification and Telecommunications Loan           33,270,000         38,027,000         33,270,000
     Program Account...................................
    Distance Learning, Telemedicine, and Broadband                   - - -          8,057,000              - - -
     Program...........................................
    Rural Water and Waste Program......................              - - -         18,149,000              - - -
                                                        --------------------------------------------------------
        Total, RD Salaries and Expenses................       $680,827,000       $612,127,000       $686,827,000
----------------------------------------------------------------------------------------------------------------

                          COMMITTEE PROVISIONS

    For Salaries and Expenses of the Rural Development mission 
area, the Committee provides an appropriation of $236,835,000. 
The Committee provides $6,000,000 for information technology 
modernization needed for Rural Development systems.

                         Rural Housing Service

              RURAL HOUSING INSURANCE FUND PROGRAM ACCOUNT

                     (INCLUDING TRANSFERS OF FUNDS)

                                             [Dollars in Thousands]
----------------------------------------------------------------------------------------------------------------
                                                                                                 Administrative
                                                             Loan level       Subsidy level         expenses
----------------------------------------------------------------------------------------------------------------
2018 Appropriation.....................................        $25,441,855            $63,126           $412,254
2019 Budget Estimate...................................         24,260,000              - - -            244,249
Provided in the Bill...................................         25,345,500             69,362            412,254
Comparison:
    2018 Appropriation.................................            -96,355             +6,236              - - -
    2019 Budget Estimate...............................        +$1,085,500           +$69,362          +$168,005
----------------------------------------------------------------------------------------------------------------

                          COMMITTEE PROVISIONS

    For the Rural Housing Insurance Fund program account, the 
Committee provides a loan level of $25,345,500,000.
    Rural Definition.--Communities need transparency and 
deserve to understand the criteria that are evaluated when 
determining eligibility for Rural Housing Service (RHS) 
programs. The Committee directs RHS to submit a report listing 
the criteria used to define ``rural in character'' in 
determining program eligibility.
    The following table reflects the loan levels for the Rural 
Housing Insurance Fund program account:

                                             [Dollars in Thousands]
----------------------------------------------------------------------------------------------------------------
                                                                                                    Committee
                                                             FY 2018 enacted  FY 2019 estimate      provision
----------------------------------------------------------------------------------------------------------------
Rural Housing Insurance Fund Loans:
    Single Family Housing (sec. 502):
        Direct............................................        $1,100,000            $- - -        $1,000,000
        Unsubsidized Guaranteed...........................        24,000,000        24,000,000        24,000,000
    Housing Repair (sec. 504).............................            28,000             - - -            28,000
    Rental Housing (sec. 515).............................            40,000             - - -            40,000
    Multi-family Guaranteed (sec. 538)....................           230,000           250,000           230,000
    Site Development Loans................................             5,000             - - -             5,000
    Credit Sales of Acquired Property.....................            10,000            10,000            10,000
    Self-help Housing Land Development Fund...............             5,000             - - -             5,000
    Farm Labor Housing....................................            23,855             - - -            27,500
                                                           -----------------------------------------------------
        Total, Loan Authorization.........................       $25,441,855       $24,260,000       $25,345,500
----------------------------------------------------------------------------------------------------------------

    The following table reflects the costs of loan programs 
under credit reform:

        ESTIMATED LOAN SUBSIDY AND ADMINISTRATIVE EXPENSES LEVELS
                         [Dollars in Thousands]
------------------------------------------------------------------------
                                   FY 2018       FY 2019      Committee
                                   enacted      estimate      provision
------------------------------------------------------------------------
Rural Housing Insurance Fund
 Program Account (Loan
 Subsidies and Grants):
    Single Family Housing
     (sec. 502):
        Direct................       $42,350         - - -       $49,000
    Housing Repair (sec. 504).         3,452         - - -         3,418
    Rental Housing (sec. 515).        10,524         - - -         9,484
    Farm Labor Housing........         6,374         - - -         6,853
    Site Development (sec.                58         - - -           176
     524).....................
    Self-Help Land (sec. 523).           368         - - -           431
        Total, Loan Subsidies.        63,126         - - -        69,362
    Farm Labor Housing Grants.         8,336         - - -        10,000
RHIF Expenses:
        Administrative              $412,254      $244,249      $412,254
         Expenses.............
------------------------------------------------------------------------

                       RENTAL ASSISTANCE PROGRAM

 
 
 
2018 appropriation....................................    $1,345,293,000
2019 budget estimate..................................     1,331,400,000
Provided in the bill..................................     1,331,400,000
Comparison:
    2018 appropriation................................       -13,893,000
    2019 budget estimate..............................             - - -
 

                          COMMITTEE PROVISIONS

    For the Rental Assistance Program, the Committee provides a 
program level of $1,331,400,000.

           MULTIFAMILY HOUSING REVITALIZATION PROGRAM ACCOUNT

 
 
 
2018 appropriation....................................       $47,000,000
2019 budget estimate..................................        20,000,000
Provided in the bill..................................        53,000,000
Comparison:
    2018 appropriation................................        +6,000,000
    2019 budget estimate..............................       +33,000,000
 

    For the Multifamily Housing Revitalization Program Account, 
the Committee provides an appropriation of $53,000,000, 
including $28,000,000 for the rural housing voucher program.
    The Committee does not accept the proposal to move the 
voucher and multifamily housing revitalization programs; 
however, the Committee wishes to further consider this proposal 
for future years.

                  MUTUAL AND SELF-HELP HOUSING GRANTS

 
 
 
2018 appropriation....................................       $30,000,000
2019 budget estimate..................................             - - -
Provided in the bill..................................        30,000,000
Comparison:
    2018 appropriation................................             - - -
    2019 budget estimate..............................       +30,000,000
 

                          COMMITTEE PROVISIONS

    For the Mutual and Self-Help Housing program, the Committee 
provides an appropriation of $30,000,000.

                    RURAL HOUSING ASSISTANCE GRANTS

 
 
 
2018 appropriation....................................       $40,000,000
2019 budget estimate..................................             - - -
Provided in the bill..................................        45,000,000
Comparison:
    2018 appropriation................................        +5,000,000
    2019 budget estimate..............................       +45,000,000
 

                          COMMITTEE PROVISIONS

    For the Rural Housing Assistance Grants program, the 
Committee provides an appropriation of $45,000,000, including 
$15,000,000 for rural housing preservation grants.
    The Committee encourages USDA to consider utilizing 
resources to address families or individuals that have 
straight-pipe septic systems or an individual sewage treatment 
system that fail to meet state or federal requirements.

               RURAL COMMUNITY FACILITIES PROGRAM ACCOUNT

                     (INCLUDING TRANSFERS OF FUNDS)

 
 
 
2018 appropriation....................................       $48,627,000
2019 budget estimate..................................       147,591,000
Provided in the bill..................................        43,778,000
Comparison:
    2018 appropriation................................        -4,849,000
    2019 budget estimate..............................      -103,813,000
 

                          COMMITTEE PROVISIONS

    For the Rural Community Facilities Program Account, the 
Committee provides an appropriation of $43,778,000.
    The Committee continues to take the Rural Development 
administrative expense transfer from the Rural Housing 
Insurance Fund (RHIF) and does not accept the proposed transfer 
from the Rural Community Facilities program account.
    Power Plus.--The Committee encourages USDA to give 
consideration to Community Facility investments in coal 
communities that have been negatively impacted by changes in 
the coal industry and power sector.
    The following table provides the Committee's 
recommendations as compared to the budget request:

                                             [Dollars in Thousands]
----------------------------------------------------------------------------------------------------------------
                                                                                                   Committee
                                                        FY 2018 enacted    FY 2019 estimate        provision
----------------------------------------------------------------------------------------------------------------
Loan Levels:
    Community Facility Direct Loans.................        ($2,800,000)        ($3,500,000)        ($2,800,000)
    Community Facility Guaranteed Loans.............           (148,287)               - - -           (200,000)
Subsidy and Grants:
    Community Facility Guaranteed Loans.............               4,849               - - -               - - -
    Community Facility Grants.......................              30,000               - - -              30,000
    Rural Community Development Initiative..........               4,000               - - -               4,000
    Economic Impact Initiative......................               5,778               - - -               5,778
    Tribal College Grants...........................               4,000               - - -               4,000
    Administrative Expense Transfer.................               - - -             147,591               - - -
                                                     -----------------------------------------------------------
        Total, Rural Community Facilities Program                $48,627            $147,591             $43,778
         Subsidy and Grants.........................
----------------------------------------------------------------------------------------------------------------

                   Rural Business-Cooperative Service

                     RURAL BUSINESS PROGRAM ACCOUNT

                     (INCLUDING TRANSFERS OF FUNDS)

 
 
 
2018 appropriation....................................       $77,342,000
2019 budget estimate..................................             - - -
Provided in the bill..................................        67,215,000
Comparison:
    2018 appropriation................................       -10,127,000
    2019 budget estimate..............................       +67,215,000
 

                          COMMITTEE PROVISIONS

    For the Rural Business Program Account, the Committee 
provides an appropriation of $67,215,000.
    The Committee provides resources to operate programs under 
the Rural Business-Cooperative Service (RBS). RBS programs 
complement lending activities of the private sector by 
promoting economic prosperity in rural communities through 
improved access to capital and economic development on a 
regional scale.
    The following table provides the Committee's 
recommendations as compared to the budget request:

                         [Dollars in Thousands]
------------------------------------------------------------------------
                                   FY 2018       FY 2019      Committee
                                   enacted      estimate      provision
------------------------------------------------------------------------
Loan Level:
    Business and Industry         ($919,765)         - - -    ($950,000)
     Guaranteed Loans.........
Subsidy and Grants:
    Business and Industry             37,342         - - -        28,215
     Guaranteed Loans.........
    Rural Business Development        34,000         - - -        34,000
     Grants...................
    Delta Regional Authority/          6,000         - - -         5,000
     Appalachian Regional
     Commission...............
                               -----------------------------------------
        Total, Rural Business        $77,342        $- - -       $67,215
         Program Subsidy and
         Grants...............
------------------------------------------------------------------------

    The following programs are included in the bill for the 
Rural Business Program account: $500,000 for rural 
transportation technical assistance and $4,000,000 for 
Federally Recognized Native American Tribes, of which $250,000 
is for transportation technical assistance.

              INTERMEDIARY RELENDING PROGRAM FUND ACCOUNT

                     (INCLUDING TRANSFER OF FUNDS)

                                             [Dollars in Thousands]
----------------------------------------------------------------------------------------------------------------
                                                                                                 Administrative
                                                             Loan level       Subsidy level         expenses
----------------------------------------------------------------------------------------------------------------
2018 Appropriation.....................................            $18,889             $4,361             $4,468
2019 Budget Estimate...................................              - - -              - - -              - - -
Provided in the Bill...................................             20,000              4,402              4,468
Comparison:
    2018 Appropriation.................................             +1,111                +41              - - -
    2019 Budget Estimate...............................           +$20,000            +$4,402            +$4,468
----------------------------------------------------------------------------------------------------------------

                          COMMITTEE PROVISIONS

    For the Intermediary Relending Program Fund Account, the 
Committee provides for a loan level of $20,000,000.
    For the loan subsidy, the Committee provides an 
appropriation of $4,402,000. In addition, the Committee 
provides $4,468,000 for administrative expenses.

            RURAL ECONOMIC DEVELOPMENT LOANS PROGRAM ACCOUNT

                    (INCLUDING RESCISSION OF FUNDS)

------------------------------------------------------------------------
                                                           Loan level
------------------------------------------------------------------------
2018 Appropriation....................................       $45,000,000
2019 Budget Estimate..................................             - - -
Provided in the Bill..................................        50,000,000
Comparison:
    2018 Appropriation................................        +5,000,000
    2019 Budget Estimate..............................      +$50,000,000
------------------------------------------------------------------------

                          COMMITTEE PROVISIONS

    For the Rural Economic Development Loans Program Account, 
the Committee provides for a loan level of $50,000,000.
    Review and Selection Process.--The Committee recognizes 
that demand for the Rural Economic Development Loan and Grant 
Program remains high. The Committee encourages the Rural 
Business-Cooperative Service to award funds on a first-come 
first-serve basis, after taking all other eligibility 
requirements into account, and not the prioritization system 
utilized in fiscal year 2016. The Committee supports utilizing 
a first-come, first-serve award system as the most expeditious 
means to award funds to eligible projects.

                  RURAL COOPERATIVE DEVELOPMENT GRANTS

 
 
 
2018 appropriation....................................       $27,550,000
2019 budget estimate..................................             - - -
Provided in the bill..................................        27,550,000
Comparison:
    2018 appropriation................................             - - -
    2019 budget estimate..............................       +27,550,000
 

                          COMMITTEE PROVISIONS

    For Rural Cooperative Development Grants, the Committee 
provides an appropriation of $27,550,000. This total includes 
$2,750,000 for a cooperative agreement for the Appropriate 
Technology Transfer for Rural Areas program and $16,000,000 for 
the value-added agricultural product market development grant 
program.

                    RURAL ENERGY FOR AMERICA PROGRAM

 
 
 
2018 appropriation....................................          $293,000
2019 budget estimate..................................             - - -
Provided in the bill..................................           334,500
Comparison:
    2018 appropriation................................           +41,500
    2019 budget estimate..............................          +334,500
 

                          COMMITTEE PROVISIONS

    For the Rural Energy for America Program, the Committee 
provides a loan level of $7,500,000 and an appropriation of 
$334,500 for the loan subsidy to make loans as authorized by 
section 9007 of the Farm Security and Rural Investment Act of 
2002 (7 U.S.C. 8107).

                        Rural Utilities Service

             RURAL WATER AND WASTE DISPOSAL PROGRAM ACCOUNT

                     (INCLUDING TRANSFERS OF FUNDS)

 
 
 
2018 appropriation....................................      $560,263,000
2019 budget estimate..................................             - - -
Provided in the bill..................................       637,690,000
Comparison:
    2018 appropriation................................       +77,427,000
    2019 budget estimate..............................      +637,690,000
 

                          COMMITTEE PROVISIONS

    For the Rural Water and Waste Disposal Program Account, the 
Committee provides an appropriation of $637,690,000. Rural 
areas continue to face immense needs and challenges in 
attaining safe and clean water, and the USDA Water and Waste 
Disposal program provides targeted and coordinated support for 
these communities and is essential for the delivery of safe, 
dependable and affordable water and wastewater to rural 
America. The Committee believes this program is complementary, 
not duplicative of other federal programs and critical in 
supporting quality of life, economic development and health to 
rural communities.
    Water Supplies for Very Small Communities.--The Committee 
is aware of concerns that RUS grant programs do not adequately 
help small, disadvantaged, and severely disadvantaged 
communities access the funding and expertise necessary to 
develop sustainable water supplies or otherwise improve their 
wastewater systems, and it directs the agency to focus its 
efforts to assist these communities with predevelopment 
planning to help them address their water supply needs.
    Carryover Balances for AK, HI, and Colonias Grants.--The 
Committee urges the Department to prioritize projects based on 
need and project readiness and reminds the Department to 
utilize reprogramming flexibilities as a way to allocate funds 
in a more efficient and expeditious manner.
    Open and Free Competition Policy.--The Committee supports 
the Department's underlying adherence to free and open 
competition on water and waste projects as contained in 7 CFR 
1780.70(b) and (d). The Committee supports efforts to eliminate 
arbitrary actions in the procurement process but is concerned 
that the Department is undermining the ability of local 
communities and the engineer of record to design water and 
wastewater projects in the manner that best serves the unique 
needs and considerations of local communities. In particular, 
the Committee is concerned about the May 17, 2012, memorandum 
and the implementation of pipe materials. The Committee 
believes that the Department must apply its policy uniformly to 
all building materials but is concerned with the Department 
requirements that would unnecessarily delay projects by 
including onerous approval processes. Communities and 
professional engineers are different and specify the pipe 
materials that best suit the needs of their community and 
project. These communities and engineers, therefore make 
different determinations depending on what is suited for a 
given community, including the existence of applicable federal, 
state, or local ordinances or standard specifications. The 
Committee directs the Department to defer to the engineer of 
record in the design and choice of materials and other 
technical specifications that meet nationally recognized 
standards absent extraordinary circumstances demonstrating 
arbitrary action.
    Domestic Preference.--The bill includes language specifying 
that RUS' Rural Water and Waste Disposal program account that 
projects utilizing iron and steel shall use iron and steel 
products produced in the United States. RUS shall apply the 
Environmental Protection Agency's definition of public water 
systems while implementing the domestic preference provision.
    Sewage Management.--The Committee supports the development 
of a multi-faceted solution to the epidemic of raw sewage 
discharge in rural communities.
    Minimum Broadband Speed.--The Committee directs the 
Department to continue requiring applicants to provide a 
minimum broadband speed that is twenty-five (25) megabits 
downstream and (3) megabits upstream to every customer in the 
proposed funded service area for all broadband loan and grant 
programs.
    The following table provides the Committee's 
recommendations as compared to the budget request:

                                             [Dollars in Thousands]
----------------------------------------------------------------------------------------------------------------
                                                                                                   Committee
                                                        FY 2018 enacted    FY 2019 estimate        provision
----------------------------------------------------------------------------------------------------------------
Loan Levels:
    Water and Waste Direct Loans....................        ($1,200,000)         (1,200,000)        ($1,400,000)
    Water and Waste Guaranteed Loans................            (50,000)               - - -            (50,000)
Subsidy and Grants:
    Direct Subsidy..................................               2,040               - - -               - - -
    Guaranteed Subsidy..............................                 230               - - -                 190
    Water and Waste Revolving Fund..................               1,000               - - -               1,000
    Water Well System Grants........................                 993               - - -               1,500
    Grants for the Colonias and AK/HI...............              68,000               - - -              65,000
    Water and Waste Technical Assistance Grants.....              40,000               - - -              22,000
    Circuit Rider Program...........................              19,000               - - -              19,000
    Solid Waste Management Grants...................               4,000               - - -               4,000
    High Energy Cost Grants.........................              10,000               - - -              10,000
    Water and Waste Disposal Grants.................             400,000               - - -             500,000
    306A(i)(2) Grants...............................              15,000               - - -              15,000
                                                     -----------------------------------------------------------
        Total, Subsidies and Grants.................            $560,263              $- - -            $637,690
----------------------------------------------------------------------------------------------------------------

   RURAL ELECTRIFICATION AND TELECOMMUNICATIONS LOANS PROGRAM ACCOUNT

                     (INCLUDING TRANSFER OF FUNDS)

                         [Dollars in Thousands]
------------------------------------------------------------------------
                                               Subsidy    Administrative
                               Loan level       level        expenses
------------------------------------------------------------------------
2018 Appropriation..........    $6,940,000          $863        $33,270
2019 Budget Estimate........     6,190,000           863         38,027
Provided in the Bill........     6,940,000         1,125         33,270
Comparison:
    2018 Appropriation......         - - -          +262          - - -
    2019 Budget Estimate....     +$750,000         +$262        -$4,757
------------------------------------------------------------------------

                          COMMITTEE PROVISIONS

    For the Rural Electrification and Telecommunications Loans 
Program Account, the Committee provides a loan level of 
$6,940,000,000. In addition, the Committee provides $33,270,000 
for administrative expenses.
    The following table reflects the loan levels for the Rural 
Electrification and Telecommunications Loans Program Account:

                         [Dollars in Thousands]
------------------------------------------------------------------------
                                   FY 2018       FY 2019      Committee
                                   enacted      estimate      provision
------------------------------------------------------------------------
Loan Authorizations:
Electric:
    Direct, FFB...............    $5,500,000    $5,500,000    $5,500,000
    Guaranteed Underwriting...       750,000         - - -       750,000
        Subtotal..............     6,250,000     5,500,000     6,250,000
Telecommunications:
    Direct, Treasury Rate.....       345,000       172,600       465,000
    Direct, FFB...............       345,000       517,400       225,000
                               -----------------------------------------
        Total, Loan               $6,940,000    $6,190,000    $6,940,000
         Authorizations.......
------------------------------------------------------------------------

                           BROADBAND PROGRAM

                         [Dollars in Thousands]
------------------------------------------------------------------------
                                   FY 2018       FY 2019      Committee
                                   enacted      estimate      provision
------------------------------------------------------------------------
Broadband Program:
    Loan Authorization........       $29,851       $23,149       $29,851
    Loan Subsidy..............         5,000         4,521         5,830
    Grants....................        30,000        30,000        30,000
Distance Learning and
 Telemedicine:
    Grants....................        32,000        23,600        35,000
                               -----------------------------------------
        Total, Loan Subsidy          $67,000       $58,121       $70,830
         and Grants...........
------------------------------------------------------------------------

                          COMMITTEE PROVISIONS

    For the Broadband Program, the Committee provides an 
appropriation of $5,829,900 for a loan authorization level of 
$29,851,000.
    Healthcare and Education Options.--The Committee continues 
to support Distance Learning, Telemedicine, and Broadband 
program grants that assist rural communities in connecting to 
the rest of the world and overcoming health disparities that 
effect that population. The Committee urges the Assistant to 
the Secretary for Rural Development to continue implementing 
grants that support technology upgrades that provide additional 
healthcare access and education through the use of telemedicine 
and expanded services in community health centers through 
partnerships with hub medical centers.
    Tribal Communities.--The Committee notes that tribal 
communities continue to struggle with gaining access to 
broadband service. The Committee encourages the Secretary to 
provide a report that identifies the specific challenges Indian 
Tribal Organizations (ITOs) have in gaining access to broadband 
service and provide a plan for addressing these challenges, 
including how the Community Connect program can assist ITOs.

                                TITLE IV

                         DOMESTIC FOOD PROGRAMS

    Office of the Under Secretary for Food, Nutrition, and consumer 
                                services

 
 
 
2018 appropriation....................................          $800,000
2019 budget estimate..................................           800,000
Provided in the bill..................................           800,000
Comparison:
    2018 appropriation................................             - - -
    2019 budget estimate..............................             - - -
 

                          COMMITTEE PROVISIONS

    For the Office of the Under Secretary for Food, Nutrition, 
and Consumer Services, the Committee provides an appropriation 
of $800,000.
    Public Release of Information.--The Committee directs FNS 
to continue making all policy documents related to the WIC 
program (including, but not limited to, instructions, 
memoranda, guidance, and questions and answers) available to 
the public on the Internet within one week of their release to 
WIC state administrators.
    Program Eligibility.--The Committee directs FNS to work 
with states to ensure full compliance with the law mandating 
that every WIC and SNAP participant meet all program 
eligibility requirements. FNS is also directed to ensure these 
programs are not being promoted to ineligible individuals, 
which would increase program costs.
    Program Integrity Efforts.--The Committee appreciates the 
creation of a new FNS Chief Integrity Officer position to 
coordinate program integrity efforts across federal nutrition 
programs while ensuring assistance is available for all 
eligible participants. In addressing waste, fraud and abuse, 
the Committee encourages the Department to utilize advanced 
analytics techniques to protect the integrity of FNS programs.
    Innovative Technologies.--The marketplace continues to 
develop innovative technologies, such as third-party mobile 
applications, which can assist nutrition program participants 
in managing their benefits. The Committee encourages USDA to 
ensure that these new technologies have a secure system in 
place to protect personal account information, do not access or 
use information for commercial marketing purposes, and that 
participants have consistent access to their account 
information regardless of the means in which they choose to 
access it.

                       FOOD AND NUTRITION SERVICE

                        CHILD NUTRITION PROGRAMS

                     INCLUDING TRANSFERS OF FUNDS)

 
 
 
2018 appropriation....................................   $24,254,139,000
2019 budget estimate..................................    23,146,940,000
Provided in the bill..................................    23,183,512,000
Comparison:
    2018 appropriation................................    -1,070,627,000
    2019 budget estimate..............................       +36,572,000
 

                          COMMITTEE PROVISIONS

    For the Child Nutrition Programs, the Committee provides 
$23,183,512,000, which includes $30,000,000 for school meals 
equipment grants and $28,000,000 for the Summer Electronic 
Benefits Transfer (EBT) for Children Demonstration. The 
Committee directs USDA to expand the Summer EBT program into 
new States and areas.
    Financial Management Tools.--School food authorities would 
benefit from consolidating financial reports that are required 
in 7 CFR 210.19(a)(1). The tools that are available to help 
schools meet this requirement can be cumbersome. The Committee 
directs FNS to provide guidance within 60 days of enactment of 
this Act on the content of an alternative financial tool that 
schools may have in place for the purpose of providing the 
required financial management documentation.
    Innovation in School Meals.--The Committee is aware that 
there are many new, innovative, healthy products available that 
meet the National School Lunch Program (NSLP) and School 
Breakfast Program (SBP) nutrition standards, but current 
policies do not allow schools to get credit for serving such 
products unless the food component is in its recognizable form. 
The Committee recognizes that USDA has published a Request for 
Information regarding the crediting of foods for schools meals 
and commends these efforts. While USDA continues their process 
of updating the crediting system, the Committee directs USDA to 
issue guidance, for the 2018-2019 school year, to allow 
innovative products made from fruits, vegetables, or legumes, 
that meet nutrition standards for the food component, but are 
presented in a form different than the naturally occurring and 
visibly recognizable form, to be credited and served in the 
NSLP and SBP.
    School Meals.--The Secretary has taken positive steps to 
provide greater flexibility and restore local control in 
serving healthy meals. The Committee urges the Secretary to 
review the regulations on school meals, including school meal 
patterns such as the requirements around serving dairy 
products, and smart snacks in schools that will ensure the 
regulations do not cost schools additional funding, maximizes 
participation, and maintains healthy requirements in schools. 
As a part of this review the Secretary shall look at research 
that is based on student-age individuals and shall consult with 
local stakeholders, including school superintendents, school 
board members, school leaders, and school food service 
personnel.
    Food waste also remains a concern in the school meals 
program. Schools should have the ability to serve leftover 
compliant foods in a quick, timely manner in accordance with 
food safety requirements. The Committee urges USDA to consider 
implementing flexibilities in allowing schools to utilize these 
foods in a more efficient manner.
    School Breakfast Commodities.--Under current regulations, 
vegetables may be substituted to meet the fruit requirement in 
the breakfast meal pattern as long as schools offer non-starchy 
vegetables first. To provide students with more vegetable 
options at breakfast, the Secretary should allow any variety of 
vegetable to be served in the school breakfast program, without 
such restrictions. The Committee directs USDA to implement this 
policy change for the 2018-2019 school year.
    Summer Food Service Program (SFSP).--OIG has been 
conducting an audit of the SFSP, publishing several interim 
reports describing food safety issues at some SFSP sponsor 
sites. The OIG's March 2018 audit report titled `FNS Controls 
over Summer Food Service Program' found that FNS needs to 
strengthen its monitoring and oversight procedures of the 
States, improve its assessment of risk for improper payments, 
and reassess FNS' authority to grant nationwide waivers of SFSP 
regulations through policy memoranda. FNS generally concurred 
with all of OIG's findings and recommendations. The Committee 
directs FNS to provide a report describing how the agency will 
take corrective actions.
    Unpaid School Lunch Fees.--The Committee is concerned with 
reports that some students with unpaid school lunch fees are 
treated unfairly and being publicly embarrassed. The Committee 
directs the Secretary to issue recommended standards schools 
may adopt to address the issue of shaming school children for 
unpaid school lunch fees, including standards that protect 
children from public embarrassment; that strongly encourage all 
communications about unpaid school lunch fees be directed at 
the parent or guardian, not the child; and that encourage 
schools to take additional steps to work with families falling 
behind in their school lunch fees.
    The following table reflects the Committee recommendations 
for the child nutrition programs:

                         [Dollars in Thousands]
------------------------------------------------------------------------
 
------------------------------------------------------------------------
Child Nutrition Programs:
    School Lunch Program.............................        $11,713,000
    School Breakfast Program.........................          5,081,770
    Child and Adult Care Food Program................          3,933,393
    Summer Food Service Program......................            519,461
    Special Milk Program.............................              8,777
    State Administrative Expenses....................            302,906
    Commodity Procurement............................          1,473,874
    Food Safety Education............................              2,929
    Coordinated Review...............................             10,000
    Computer Support and Processing..................             12,124
    Training and Technical Assistance................             13,935
    CNP Studies and Evaluations......................             21,639
    CN Payment Accuracy..............................             11,203
    Farm to School Team..............................              3,497
    Team Nutrition...................................             15,504
    Healthier U.S. Schools Challenge.................              1,500
    School Meals Equipment Grants....................             30,000
    Summer EBT Demonstration.........................             28,000
                                                      ------------------
        Total........................................        $23,183,512
------------------------------------------------------------------------

SPECIAL SUPPLEMENTAL NUTRITION PROGRAM FOR WOMEN, INFANTS, AND CHILDREN 
                                 (WIC)

 
 
 
2018 appropriation....................................    $6,175,000,000
2019 budget estimate..................................     5,750,000,000
Provided in the bill..................................     6,000,000,000
Comparison:
    2018 appropriation................................      -175,000,000
    2019 budget estimate..............................      +250,000,000
 

                          COMMITTEE PROVISIONS

    For the Special Supplemental Nutrition Program for Women, 
Infants, and Children, the Committee provides an appropriation 
of $6,000,000,000. The Committee provides for continuation of 
the breastfeeding peer counselor program and infrastructure. 
The Committee encourages FNS to support innovative technologies 
that can improve rural and urban participants' access to 
lactation consultants particularly outside of normal WIC clinic 
business hours.
    USDA data shows that WIC participation rates have decreased 
steadily since fiscal year 2010. The President's budget request 
includes a projection of an average monthly participation rate 
of 6.9 million women, infants, and children for fiscal year 
2019, yet rates are currently averaging 7 million participants 
per month.
    USDA is estimating recovery and carryover funds to be 
higher than average. Furthermore, the Secretary has a 
sufficient WIC contingency reserve fund as a safety net to meet 
unexpected demand. With lower participation rates, higher 
carryover funds, and an ample reserve fund, the Committee 
provides funding that will ensure all eligible participants 
will be served. The Committee will continue to monitor WIC 
participation, carryover funds, and food costs and take 
additional action as necessary to ensure that funding provided 
in fiscal year 2019 remains sufficient to serve all eligible 
applicants.
    Zika Outreach and Education.--The Committee is supportive 
of ensuring pregnant women are educated on the various methods 
for preventing exposure to the Zika virus during pregnancy. The 
Committee directs the Department, in consultation with the CDC, 
to either continue or expand its education and outreach efforts 
through the WIC program to provide pregnant women with the 
information they need to prevent Zika.

               SUPPLEMENTAL NUTRITION ASSISTANCE PROGRAM

 
 
 
2018 appropriation....................................   $74,013,499,000
2019 budget estimate..................................    73,218,276,000
Provided in the bill..................................    73,219,274,000
Comparison:
    2018 appropriation................................      -794,225,000
    2019 budget estimate..............................          +998,000
 

                          COMMITTEE PROVISIONS

    For the Supplemental Nutrition Assistance Program, the 
Committee provides $73,219,274,000. The total amount includes 
$3,000,000,000 for a contingency reserve to be used only in the 
amount necessary.
    Electronic Benefit Transfer (EBT) Equipment.--The Committee 
is aware that some farmers markets and farmers selling directly 
to consumers are interested in EBT equipment that operates for 
a variety of federal nutrition programs. FNS is encouraged to 
assist farmers markets and direct-selling farmers in obtaining 
EBT equipment that allows participation in both SNAP and WIC. 
Additionally, FNS is encouraged to allow non-profit 
organizations operating multiple farmers markets to use one EBT 
device at multiple approved market locations.
    Household Certification Periods.--The Committee recognizes 
the certification period structure in the SNAP program attempts 
to balance administration effort with sufficient program 
integrity. States are granted significant flexibility in 
determining certification lengths and reporting requirements 
for certain households. Current regulation at 7 CFR 
273.10(f)(3) requires that households with ``unstable 
circumstances such as households with zero net income'' should 
have certification periods ``consistent with their 
circumstances.'' There is concern that some households 
(excluding those with an elderly or disabled individual) 
reporting zero net income may have lengthy certification 
periods without a review to verify their income status. The 
Committee directs USDA to review the state practice of 
assigning lengthy certification periods of 6 months to a year 
to households with zero net income or that fit the ``unstable 
circumstances'' category described in regulation. The review 
and report should explore whether assigning lengthy 
certification periods is related to higher rates of 
inappropriate eligibility and overpayments.
    Recruitment Activities.--The Committee continues to direct 
USDA to ensure that Section 4018 of the 2014 Farm Bill is 
implemented and enforced in a manner consistent with the 
statute which prohibits USDA from conducting recruitment 
activities, advertising the program, or entering into 
agreements with foreign governments to promote SNAP benefits. 
The Committee continues to direct USDA to enforce this 
provision to ensure that state agencies are not reimbursed for 
such activities consistent with the statute.
    SNAP Employment and Training (E&T) Program.--The Committee 
supports efforts to assist SNAP participants in moving to self-
sufficiency through meaningful employment opportunities. There 
is interest in clarifying the policy that would allow States to 
voluntarily choose whether or not to screen those who 
participate in the SNAP E&T program for drug use if the job 
they are training for would require a drug test. Such drug 
screening would not be used to determine eligibility to receive 
SNAP assistance, per the underlying statute. The Committee 
directs USDA to clarify the proper role of drug screening in 
SNAP E&T programs by issuing guidance within 60 days of 
enactment of this Act that is consistent with the Food and 
Nutrition Act of 2008.
    SNAP Report.--Not later than 12 months after the date of 
enactment of this Act, the Secretary shall submit a report to 
the Committees on Appropriations estimating the impact that 
using the low-cost food plan would have on reducing hunger 
among SNAP participants.
    The following table reflects the Committee recommendations 
for SNAP:

                         [Dollars in Thousands]
 
 
 
Supplemental Nutrition Assistance Program Account:
    Benefits..........................................       $62,065,748
    Contingency Reserve...............................         3,000,000
Administrative Costs:
    State Administrative Costs........................         4,604,463
    Nutrition Education and Obesity Prevention Grant             428,000
     Program..........................................
    Employment and Training...........................           486,607
    Mandatory Other Program Costs.....................           190,504
    Discretionary Other Program Costs.................               998
                                                       -----------------
        Administrative Subtotal.......................         5,710,572
    Nutrition Assistance for Puerto Rico (NAP)........         1,961,927
    American Samoa....................................             7,879
    Food Distribution Program on Indian Reservations..           153,000
    TEFAP Commodities.................................           294,000
    Commonwealth of the Northern Mariana Islands......            12,148
    Community Food Project............................             9,000
    Program Access....................................             5,000
                                                       -----------------
        Subtotal......................................         2,442,954
                                                       =================
            Total.....................................       $73,219,274
 

                      COMMODITY ASSISTANCE PROGRAM

 
 
 
2018 appropriation....................................      $322,139,000
2019 budget estimate..................................        55,471,000
Provided in the bill..................................       306,910,000
Comparison:
    2018 appropriation................................       -15,229,000
    2019 budget estimate..............................      +251,439,000
 

                          COMMITTEE PROVISIONS

    The Committee provides an appropriation of $306,910,000 for 
the Commodity Assistance Program. The recommended funding level 
for the Commodity Supplemental Food Program is $222,891,000 to 
continue this critical program serving the elderly. The amount 
provided fully funds expected caseload.
    The Committee recommendation continues to provide 
$18,548,000 for the Farmers' Market Nutrition Program and 
$64,401,000 for administrative funding for The Emergency Food 
Assistance Program (TEFAP). For the Food Donations Programs, 
the Committee provides an appropriation of $1,070,000 for 
Pacific Island Assistance.
    TEFAP Handling and Distribution Costs.--In addition to 
grant funds supporting commodity handling and distribution 
costs, the bill permits states to use up to 15 percent of the 
funds provided for purchasing TEFAP commodities to help with 
the costs of storing, transporting, and distributing 
commodities. The Committee expects state agencies to consult 
with their emergency feeding organizations on the need for the 
conversion of such funds.

                   NUTRITION PROGRAMS ADMINISTRATION

 
 
 
2018 appropriation....................................      $153,841,000
2019 budget estimate..................................       160,838,000
Provided in the bill..................................       162,838,000
Comparison:
    2018 appropriation................................        +8,997,000
    2019 budget estimate..............................        +2,000,000
 

                          COMMITTEE PROVISIONS

    For Nutrition Programs Administration, the Committee 
provides $162,838,000, including $2,000,000 to continue the 
Congressional Hunger Center Fellows Program.
    Dietary Guidelines for Americans.--The Committee applauds 
the leadership of USDA in implementing recommendations from the 
National Academies of Science, Engineering, and Medicine's 
(NASEM) report entitled `Redesigning the Process for 
Establishing the Dietary Guidelines for Americans' issued 
September 2017. The Committee directs USDA to continue a 
transparent process in formulating the 2020 Guidelines that 
stays within the scope of the law. USDA is strongly encouraged 
to use a more rigorous scientific process, by prioritizing 
randomized controlled clinical trials such as what was 
recommended by the NASEM report, and to manage conflicts of 
interests in establishing a balanced Advisory Committee. USDA 
is encouraged to include recommendations in the DGA that is 
based on more rigorous science. Furthermore, the 2020 
Guidelines shall, to the extent practicable, include 
information and dietary patterns designed to help people 
suffering from metabolic diseases such as obesity, diabetes, 
and heart disease.

                                TITLE V

                FOREIGN ASSISTANCE AND RELATED PROGRAMS

   Office of the Under Secretary for Trade and Foreign Agricultural 
                                Affairs

 
 
 
2018 appropriation....................................          $875,000
2019 budget estimate..................................           875,000
Provided in the bill..................................           875,000
Comparison:
    2018 appropriation................................             - - -
    2019 budget estimate..............................             - - -
 

                          COMMITTEE PROVISIONS

    For the Office of the Under Secretary for Trade and Foreign 
Agricultural Affairs, the Committee provides an appropriation 
of $875,000.

                      Office of Codex Alimentarius

 
 
 
2018 appropriation....................................        $3,796,000
2019 budget estimate..................................         3,796,000
Provided in the bill..................................         3,796,000
Comparison:
    2018 appropriation................................             - - -
    2019 budget estimate..............................             - - -
 

                          COMMITTEE PROVISIONS

    For the Office of Codex Alimentarius, the Committee 
provides an appropriation of $3,796,000.

                      Foreign Agricultural Service

                         SALARIES AND EXPENSES

                     (INCLUDING TRANSFERS OF FUNDS)

----------------------------------------------------------------------------------------------------------------
                                                                              Transfer from
                                                           Appropriation       export loan           Total
                                                                                 account
----------------------------------------------------------------------------------------------------------------
2018 appropriation.....................................       $199,666,000         $6,382,000       $206,048,000
2019 budget estimate...................................        193,085,000          6,717,000        199,802,000
Provided in the bill...................................        204,138,000          6,717,000        210,855,000
Comparison:
    2018 appropriation.................................         +4,472,000               +335         +4,807,000
    2019 budget estimate...............................       +$11,053,000             $- - -       +$11,053,000
----------------------------------------------------------------------------------------------------------------

                          COMMITTEE PROVISIONS

    For the Foreign Agricultural Service, the Committee 
provides an appropriation of $204,138,000 and transfer of 
$6,717,000, for a total appropriation of $210,855,000.
    The Committee provides increases in funding for 
International Cooperative Administrative Support Services, 
Capital Security Cost Sharing, Locally Employed Staff, 
monitoring and enforcement of trade agreements, and $3,000,000 
above estimated amounts for the Country Strategy Support Fund. 
The Committee accepts reductions in FTE from attrition not to 
exceed $10,322,000. The Committee supports the establishment of 
the Interagency Trade Policy Committee.
    Farmer-to-Farmer.--The Global Food Security Strategy 
presents an integrated whole-of-government approach to food 
security, with the U.S. Agency for International Development 
(USAID) in the lead on coordinating efforts between federal 
agencies, multilateral organizations, and other governments. 
The Committee appreciates the leadership role of the USDA in 
global food security and its value-added contributions related 
to capacity building, basic and applied research programs, and 
the promotion of science-based policies and regulations that 
expand agricultural markets and trade. The Committee directs 
that USDA enhance the John Ogonowski and Doug Bereuter Farmer-
to-Farmer program by expanding the role of the agricultural 
officer in Target Countries, determined in accordance with the 
Global Food Security Act. The agricultural officer shall have 
or shall be provided with training to enhance the important 
role of the USAID and USDA in achieving food security in Target 
Countries. The Committee also directs that the USDA agriculture 
officer in the expanded role collaborate with the Farmer-to-
Farmer program staff and the USAID staff working on food 
security programs, and with land grant universities and 
agricultural extension services active in the Target Countries 
to seek to leverage their expertise in achieving the food 
security goals of Farmer-to-Farmer.
    U.S.-Central America, Mexico Cooperation.--The Committee 
directs the agency to work with its counterparts in Central 
America and Mexico to develop an agricultural working group 
improving the efficiency of the inspection process, the trade 
supply chain, and transportation costs, among other issues. In 
addition, the agency shall use existing programs for academic 
exchanges in agriculture related fields of study in this 
region. The agency shall brief the Committee within 180 days of 
the date of enactment on current efforts in these areas.

  FOOD FOR PEACE TITLE I DIRECT CREDIT AND FOOD FOR PROGRESS PROGRAM 
                                ACCOUNT

                     (INCLUDING TRANSFER OF FUNDS)

 
 
 
2018 appropriation....................................          $149,000
2019 budget estimate..................................           142,000
Provided in the bill..................................           142,000
Comparison:
    2018 appropriation................................            -7,000
    2019 budget estimate..............................             - - -
 

                          COMMITTEE PROVISIONS

    For administrative expenses to carry out the credit program 
of Food for Peace Title I, Food for Peace Act, and the Food for 
Progress Act, the Committee provides an appropriation of 
$142,000.
    The Committee provides a one-time increase to the Food for 
Progress Program account, as authorized, of $35,000,000 to 
restore funding reductions in previous years and meet increased 
program demand.

                     Food for Peace Title II Grants

 
 
 
2018 appropriation....................................    $1,600,000,000
2019 budget estimate..................................             - - -
Provided in the bill..................................     1,500,000,000
Comparison:
    2018 appropriation................................      -100,000,000
    2019 budget estimate..............................    +1,500,000,000
 

                          COMMITTEE PROVISIONS

    For Food for Peace Title II grants, the Committee provides 
$1,500,000,000, of which $350,000,000 is for non-emergency 
assistance.
    Central American Food Assistance.--The Committee directs 
the Administrator of the USAID to continue briefing the 
Committee on its efforts, including the amount and type of food 
aid, in Central America. The Agency shall report on the 
implementation plan for measures within 90 days of enactment of 
the Act.
    Food for Peace Title II.--As the causes of food insecurity 
differ widely between communities, countries, and regions, it 
is important that U.S.-funded food assistance programs be able 
to implement solutions to food insecurity and undernutrition. 
U.S.-sourced commodities will remain a core component of 
humanitarian relief. The committee supports the continued 
funding of U.S. food assistance programs. Given the level and 
scale of complex international humanitarian disasters, and the 
fact that population needs and contexts differ widely among 
crises, the Committee recognizes the proper forums for debate 
of these programs remains the Congressional authorization 
process.

        MCGOVERN-DOLE INTERNATIONAL FOOD FOR EDUCATION AND CHILD

                        NUTRITION PROGRAM GRANTS

 
 
 
2018 appropriation....................................      $207,626,000
2019 budget estimate..................................             - - -
Provided in the bill..................................       207,626,000
Comparison:
    2018 appropriation................................             - - -
    2019 budget estimate..............................      +207,626,000
 

                          COMMITTEE PROVISIONS

    For McGovern-Dole International Food for Education and 
Child Nutrition Program Grants, the Committee provides an 
appropriation of $207,626,000.

              COMMODITY CREDIT CORPORATION EXPORT (LOANS)

                    CREDIT GUARANTEE PROGRAM ACCOUNT

                     (INCLUDING TRANSFERS OF FUNDS)

 
 
 
2018 appropriation....................................        $8,845,000
2019 budget estimate..................................         7,052,000
Provided in the bill..................................         9,180,000
Comparison:
    2018 appropriation................................          +335,000
    2019 budget estimate..............................        +2,128,000
 

                          COMMITTEE PROVISIONS

    For administrative expenses of the Commodity Credit 
Corporation Export Loans Credit Guarantee Program Account, the 
Committee provides an appropriation of $9,180,000.

                                TITLE VI

           RELATED AGENCIES AND FOOD AND DRUG ADMINISTRATION

                DEPARTMENT OF HEALTH AND HUMAN SERVICES

                      Food and Drug Administration

                         SALARIES AND EXPENSES

                         [Dollars in Thousands]
------------------------------------------------------------------------
                                                             Total, FDA
                               Appropriation    User fees        S&E
------------------------------------------------------------------------
2018 Appropriation...........     $2,800,078    $2,337,963    $5,138,041
2019 Budget Estimate.........      3,171,920     2,460,221     5,632,141
Provided in the Bill.........      3,107,789     2,460,221     5,568,010
Comparison:
    2018 Appropriation.......       +307,711      +122,258      +429,969
    2019 Budget Estimate.....       -$64,131         - - -      -$64,131
------------------------------------------------------------------------

    The Committee provides an appropriation of $3,107,789,000 
in new budget authority for the FDA. In addition, the Committee 
recommends the following user fee amounts: $960,568,000--
prescription drugs; $196,668,000--medical devices; 
$501,396,000--human generic drugs; $40,922,000--biosimilar 
biologicals; $30,331,000--animal drugs; $18,336,000--animal 
generic drugs; and $712,000,000--tobacco products. The 
combination of new budget authority and definite user fees 
provides the FDA with a total discretionary salaries and 
expenses level of $5,568,010,000. This total does not include 
permanent, indefinite user fees for: the Mammography Quality 
Standards Act; Export Certification; Priority Review Vouchers 
for Pediatric Disease; Food and Feed Recall; Food Reinspection; 
Voluntary Qualified Importer Program; the Third Party Auditor 
Program; and Outsourcing Facilities.
    The Committee recommendation includes a net increase of 
$307,711,000, including increases for the following programs or 
initiatives: $30,000,000 to assist FDA confront the opioid 
crisis; $38,500,000 to Promote Domestic Manufacturing; 
$12,000,000 for a New Domestic Drug Industry; $12,000,000 for 
MedTech Manufacturing; $60,000,000 for New Medical Data 
Enterprise; $40,000,000 for the Growth and Transformation of 
Digital Health; $50,000,000 for New Platform for Drug 
Development, including a $5,000,000 increase for FDA's Oncology 
Center for Excellence; $27,000,000 for Modernizing Generic Drug 
Development and Review; and $20,000,000 for Investment and 
Innovation for Rare Diseases. The $30,000,000 provided to 
combat the opioid epidemic is in addition to the $94,000,000 
included in the fiscal year 2018 Consolidated Appropriations 
Act.
    The Committee's recommendation of an increase in excess of 
$300,000,000 for medical product safety is intended to support 
the advancement of medical innovation and competition as well 
as make investments in regulatory science that can reduce 
uncertainty for innovators, spur investment in new industries, 
provide principles for the safe and effective development of 
new technologies, and most importantly, improve the safety and 
effectiveness of medicine to the patient and consumer. Of 
particular interest to the Committee, is the opportunity for 
FDA to facilitate advancements in the manufacturing of safe and 
effective therapeutics, including continuous manufacturing of 
drugs and biological products. The expected outcomes of these 
initiatives include lower healthcare costs; the development of 
new industries with an increase in U.S.-based jobs; improved 
treatment and diagnostic options for patients; and 
manufacturing advances that are lower cost, higher quality, and 
more predictable.
    The Committee recommendation does not include proposed user 
fee increases for Export Certification and Over-the-Counter 
Monograph until such fees are authorized in law.
    The Committee does not include funding for a civilian pay 
increase across the agency. Should the President provide a 
civilian pay increase for fiscal year 2019, it is assumed that 
the cost of such a pay increase will be absorbed within 
existing appropriations for fiscal year 2019.
    The Committee recommendation maintains FY 2018 Consolidated 
Appropriation Act funding levels for the medical 
countermeasures initiative.
    Food Safety and the Food Safety Modernization Act 
Funding.--The Government Accountability Office (GAO) released a 
report in January of this year entitled ``Food Safety and 
Nutrition: FDA Can Build on Existing Efforts to Measure 
Progress and Implement Key Activities.'' The report documents 
spending and shows a steady increase in spending for food 
safety due in part to Congressional spending increases. FDA has 
spent over a billion dollars a year since 2011. With increases 
of $36 million in FY 2017 and $10.5 million in FY 2018, FDA 
will likely spend $9.5 billion on food safety over these eight 
years. A majority of this spending relates to activities 
surrounding the Food Safety Modernization Act (FSMA) 
development and implementation activities.
    With this level of funding on the Federal side and billions 
more invested by the private sector, Congress and the American 
people need to see results in terms of reduced illnesses, 
hospitalizations and deaths. The Committee directs FDA to 
provide information to the public via reports and on its 
website as it relates to the link between FSMA activities and 
performance measures, especially as outcome measures support 
reductions in foodborne illnesses, hospitalizations, and 
deaths.
    Also, the Committee directs FDA to continue their outreach 
and education efforts to inform the regulated industries how 
they come into compliance with the FSMA foundational 
regulations. As previously noted, it is the intent of Congress 
for FDA to ensure an even playing field in the application of 
FSMA regulations as it relates to both domestic and imported 
producers, processors, and manufacturers of food and animal 
feed. Lastly, the Committee believes that FSMA implementation 
places additional requirements on state governments and private 
stakeholders, and therefore urges the FDA to provide sufficient 
resources to state education and inspection programs to address 
these needs.
    Medical Product Safety Funding.--The Committee directs FDA 
to maintain the increased funding levels provided by Congress 
in the past four years for the Precision Medicine Initiative; 
animal drug and medical device review; over-the-counter 
sunscreen ingredient review; the Food and Drug Administration 
Safety and Innovation Act implementation; the Combating 
Antibiotic Resistant Bacteria (CARB) initiative; Pharmacy 
Compounding; Counterfeit Drug enforcement; Critical Path 
Initiative; and medical product shipment delays.
    Proposed Reductions.--The Committee does not accept 
proposed funding reductions for: Foreign High Risk Inspections; 
the funds made available to the Health and Human Services' 
Inspector General for its audit and oversight work involving 
the FDA; the produce safety cooperative agreement funds with 
states; the Critical Path Initiative; and compounding bulk drug 
substances.
    Aircraft Galley and Lavatory Sanitation.--The Committee 
directs the GAO to conduct a study of FDA's oversight and 
inspection of aircraft galleys and lavatories. The study shall 
include the following: (1) a review of incidents in which 
problems with aircraft lavatories and galleys have resulted in 
unsanitary conditions that have affected passengers; (2) the 
extent to which the FDA has incorporated risk-based approaches 
to improve the effectiveness and efficiency of aircraft galley 
and lavatory oversight and inspection practices; (3) the extent 
to which FDA's oversight and inspection practices conform to 
its guidance; (4) a review of costs to aircraft operators 
associated with delays in FDA inspections; and (5) 
recommendations to improve FDA's oversight and inspection of 
aircraft lavatories and galleys to improve the effectiveness 
and efficiency for both the agency and aircraft operators. The 
Committee directs GAO to issue a report to the Committees 
within 270 days of enactment of this Act.
    Antimicrobial Drug Use.--In recent years, FDA has expanded 
antimicrobial drug sales and distribution reporting under 
Section 105 of the Animal Drug User Fee Amendments of 2008 
(ADUFA 105) in an effort to further enhance the Agency's 
understanding of antimicrobial drug use in food-producing 
animals. The Committee firmly believes that efforts to combat 
antimicrobial resistance must take into consideration animal 
health and welfare, which in turn affect human health and food 
safety. The Committee supports the collection and reporting of 
accurate and validated data of antimicrobial drug use for food-
producing animals, but is concerned with the accuracy of 
current ADUFA 105 reporting which equates antimicrobial sales 
and distribution data to actual antimicrobial use data. Sales 
data used to estimate antimicrobial use has been shown to be 
extremely inaccurate and ADUFA reporting must promote public 
understanding in a meaningful and accurate way. Therefore, the 
Committee encourages the Agency to seek alternative methods to 
better identify and reduce inappropriate antimicrobial drug 
uses rather than benchmarking against preconceived reduction 
goals using enhanced sales data.
    The Committee recognizes that not all antimicrobial drugs 
used in animal agriculture are involved in the potential for 
developing resistance mechanisms relevant to animal or human 
health. Consequently, the agency is encouraged to develop a 
reporting format for the ADUFA annual summary report that 
incorporates the antibiotic class of ionophores into a separate 
section of the report and clearly designates their status as 
not currently used in human medicine and not relevant to the 
development of antimicrobial resistance mechanisms.
    Cancer Immunotherapy Clinical Trials.--The Committee is 
aware of the remarkable promise of cancer immunotherapy and 
encouraged by the FDA's recent approval of new treatments that 
harness this approach to fighting cancer. More than 1,500 
immuno-oncology clinical trials are in some stage of 
development. As more patients turn to immune-based treatments, 
and more clinical trials are conducted to evaluate them, 
understanding how to recognize and manage the side effects of 
cancer immunotherapies will become increasingly important. 
Currently, however, standard parameters for reporting cancer 
immunotherapy-related adverse events in clinical trials are 
lacking, and this makes comparisons and management across 
studies challenging. The Committee, therefore, urges the FDA to 
work with the research community and the pharmaceutical 
industry to develop standardized templates for reporting 
toxicities in cancer immunotherapy clinical trials.
    Comprehensive Tobacco Framework.--The Committee commends 
the FDA for its 2017 comprehensive plan for tobacco and 
nicotine regulation to protect public health and create more 
predictability in tobacco regulation via the consideration of 
reduced-risk products. FDA must balance the needs of current 
adult smokers with the risks of attracting new youth to the 
marketplace. As FDA moves forward, the Committee directs the 
agency to consider foundational regulations and guidance for 
its new rulemakings, including for the Substantial Equivalence 
(SE) and Pre-market Tobacco Application (PMTA) pathways. These 
rulemakings should reflect a minimum of 24 months for 
compliance and additional flexibility and assistance for small 
tobacco product manufacturers. Clear definitions of terms and 
requirements for submission to FDA, including those for same 
characteristics and questions related to public health, will 
help to provide certainty and limit excessive speculation in 
the process. A foundational approach to rulemaking and guidance 
should also rely on product standards, reference products for 
the SE pathway, performance standards for FDA in certifying 
reports and applications, and the acceptance of identical 
specifications in SE reports. In providing transparency, FDA 
should consider the quarterly release of Center for Tobacco 
Products reviewer guides. Finally, FDA should consider the 
expedited or privileged review of quantity and packaging 
changes that do not affect the core characteristics of products 
in the PMTA process.
    Continuous Manufacturing Initiative.--The Committee 
provides $10,000,000 of the funding authorized under the 21st 
Century Cures Act for the Commissioner of the Food and Drug 
Administration for a Continuous Manufacturing Initiative and to 
award grants to institutions of higher education and nonprofit 
organizations for the purpose of studying and recommending 
improvements to the process of continuous manufacturing of 
drugs and biological products and similar innovative monitoring 
and control techniques. The Committee expects the FDA to 
partner with existing non-profit entities with demonstrated 
capacity and experience on advanced manufacturing technologies 
to lower pharmaceutical costs and where limited federal funds 
will be matched by non-federal resources.
    Critical Path Institute.--Innovation in the development of 
new medicines and other therapies can be enhanced by enabling 
FDA to focus on specific program areas such as those outlined 
in FDA's Critical Path Initiative and their Regulatory Science 
objectives. These types of programs which FDA often 
accomplishes through public-private partnerships expand the 
knowledge base for those developing medical products and those 
conducting regulatory review. The Committee maintains the 
$400,000 increase provided in the FY18 Consolidated 
Appropriation Act in support of this initiative.
    Crop Biotechnology & Biotech Ingredients.--Plants, food, 
and food ingredients developed using genetic engineering were 
introduced into the U.S. food supply in the 1990s. Public and 
private sector scientists knowledgeable in genetic engineering, 
toxicology, chemistry, nutrition, and other scientific areas 
have carefully evaluated and assessed the safety of these 
products and have determined that such products are safe for 
human and animal consumption. The Committee provides $3,000,000 
for USDA and the FDA to continue efforts to educate the public 
on the safety and benefits of crop biotechnology and food and 
animal feed ingredients derived from biotechnology.
    Cybersecurity in Medical Devices.--The Committee believes 
that the FDA should address potential cybersecurity 
vulnerabilities in medical devices in general, but especially 
as the Internet of Things becomes more prevalent in healthcare. 
The Committee directs the FDA to report back within 120 days on 
the agency's plans to understand the ongoing cybersecurity 
challenges of medical devices and outline a pathway forward. 
The plan should describe potential solutions and list 
compensating controls such as continuous inventory, log 
monitoring, data protection, micro segmentation, and patching 
on legacy devices to prevent cyber threats from spreading 
across hospital systems. The Committee encourages the FDA to 
seek industry collaboration to uncover the extent of the 
vulnerabilities and threats with a representative pathway to 
solving this critical issue.
    Dairy Labeling Requirements.--The Committee is aware of the 
concerns with labeling certain foods and beverages as a dairy 
product when the product is plant-based rather than derived 
from animals. The Committee directs the FDA to develop a 
standard of identity for dairy products based upon the dairy 
product terms described in parts 131, 133, and 135 of 
subchapter B of chapter I of title 21, Code of Federal 
Regulations within 180 days from the date of enactment of this 
Act. The FDA should issue guidance to industry on how to 
implement the standard of identity, including how this standard 
will be enforced.
    Dietary Supplements.--More than half of Americans take at 
least one dietary supplement each day, with use particularly 
prevalent among older persons and in children. While dietary 
supplements enter the market under the assumption that they are 
safe, the FDA has evidence of some products that are 
contaminated, either intentionally or unintentionally, with 
inherently unsafe ingredients, including active pharmaceutical 
ingredients. These products violate the Dietary Supplement 
Health and Education Act (DSHEA) and pose potential risks to 
consumers. The Committee applauds FDA's inspection of and 
enforcement actions against manufacturers with dietary 
supplement products that contain ingredients that are 
potentially harmful or otherwise noncompliant with the law. The 
Committee has been pleased with the interagency collaborations 
and urges FDA to continue working with the Department of 
Justice to remove illegal dietary supplements from the market. 
Therefore, it directs FDA to increased resources toward 
enforcement of DSHEA, including inspection and enforcement 
activities. In addition, the Committee directs FDA to submit a 
report no later than 180 days after enactment of this Act, that 
includes the number of enforcement actions FDA brought against 
dietary supplement manufacturers and marketers, as well as 
manufacturers and marketers of products claiming to be dietary 
supplements, the number of dietary supplement good 
manufacturing practice inspections FDA conducted in 2017 and 
the number of FTEs dedicated to dietary supplement inspections 
and the number of serious adverse events that were reported to 
FDA from 2015 to 2017.
    Drug Compounding Draft MOU.--The Committee appreciates the 
recognition by FDA of the flaws contained in recent 
announcement of the agency's intention to withdraw its draft 
MOU originally issued on February 13, 2015, entitled ``Draft 
Memorandum of Understanding Addressing Certain Distributions of 
Compounded Human Drug Products Between the State of ( ) and the 
Food and Drug Administration'' as it applied to Section 503A of 
the FDCA. In issuing a new draft MOU, FDA indicates it will not 
place a hard percentage limit on distributions of compounded 
medication across state lines, but will instead institute 
enhanced reporting requirements for states that agree to sign 
the MOU. The Committee is concerned that FDA still intends to 
place requirements on states and their boards of pharmacy that 
will result in many states refusing to sign an MOU. If this 
happens, the hard cap of 5 percent contained in 503A on 
distributions across state lines would apply. The Committee 
expects that, when the new draft MOU is proposed as a model 
agreement for the states to consider, that FDA will clarify the 
distinction between distribution and dispensing activities. 
Finally, any new draft MOU should be open for comment given the 
significance of this provision to patient access to medications 
from the pharmacy of their choice.
    Drug Compounding for Animals.--The Committee appreciates 
FDA withdrawing its proposed draft Guidance for Industry (GFI) 
for animal drug compounding (#230). The Commissioner has 
indicated that new guidance will be issued later this year. 
Congress passed the Drug Quality and Security Act (DQSA), which 
re-enacted section 503A regarding pharmacy compounding that had 
previously been declared unconstitutional. Section 503A and a 
new Section 503B are explicitly limited to compounding for 
humans. In GFI #230, which has been withdrawn, FDA attempted to 
apply many of the provisions from Section 503A and 503B to 
animal drug compounding without the support of statutory 
authority. This was an unprecedented intrusion into the state 
regulated practice of veterinary medicine and pharmacy.
    Drug Compounding Implementation Framework and Office Use 
Compounding.--The Committee is aware that many provisions of 
the DQSA and the re-enactment of Section 503A have been 
implemented through more than 20 agency guidance documents 
instead of the formal notice and comment rulemaking process as 
required by the underlying statutes and the Administrative 
Procedure Act. The Committee has previously expressed concerns 
about this framework. The Committee continues to express its 
disapproval of the GFI issued in December 2016 entitled 
Prescription Requirement Under Section 503A of the FDCA due to 
FDA's further involvement with legitimate state licensed 
pharmacy practice. While the compounding of limited quantities 
before receipt of a prescription is legal under Section 
503A(a)(2) of the Federal Food, Drug, and Cosmetic Act, the 
agency has clearly and unequivocally prohibited office-use 
compounding. The Committee encourages FDA to either prescribe a 
pathway for limited, safe, and controlled office-use, or hold a 
public meeting so that FDA can clearly explain to the 
respective stakeholders the legal rationale for disallowing 
office-use.
    The Committee is also aware of a January 2018 Memorandum 
issued by the Associate Attorney General that prohibits the DOJ 
from using civil enforcement authority to convert agency 
guidance documents into binding rules. Within 90 days of 
enactment of this Act, the Committee directs FDA to explain how 
the agency will implement any applicable changes in its use of 
guidances to ensure consistency with this policy due to the 
fact that these guidances serve as the underpinning of 
enforcement activity for both Section 503A and Section 503B of 
the FDCA.
    Drug Compounding Pharmacist on Pharmacy Compounding 
Advisory Committee.--The Committee is concerned that the 
Pharmacy Compounding Advisory Committee (PCAC) established 
under the DQSA does not adequately represent the interests and 
needs of providers and patients who use and depend on 
compounded medications. Compounding is often practiced in 
community settings. It is therefore vital that voting members 
of PCAC have a thorough understanding of compounding in a 
community setting in order to appropriately advise FDA. The 
Committee expects that, at the earliest possible date, whether 
filling open positions or replacing existing members, the FDA 
shall appoint voting members with recent, actual, and diverse 
experience in the preparation, pre-scribing, and use of 
compounded medications.
    Drug Compounding Under State-Licensed Pharmacies.--
According to FDA, the agency changed its compounding inspection 
practices beginning on August 1, 2016 so that a Federal 
inspection makes a preliminary determination if a state 
licensed pharmacy operating under the inspection standards 
adopted by state law or regulation appears to produce 
pharmaceuticals in accordance with the conditions of 503A. The 
agency will also address any matters related to insanitary 
conditions. If those conditions are met, including conditions 
surrounding a prescription, the Committee believes that FDA 
should be interpreting Section 503A of the FDCA to allow the 
compounding of product under the standards contained in the 
United States Pharmacopeia Convention (USP) for sterile and 
non-sterile pharmaceutical compounding or other applicable 
pharmacy inspection standards adopted by state law or 
regulation. The Committee reminds the FDA that these particular 
compounding pharmacies are not drug manufacturers, but rather, 
are state licensed and regulated health care providers that are 
inspected by state boards of pharmacy pursuant to state laws 
and regulations that establish sterility and other standards 
for the pharmacies operating within their states. The Committee 
is also concerned that FDA is publishing the 483 inspection 
records of pharmacies on its website while not simultaneously 
publishing the same information for other manufacturing 
concerns. FDA is directed to use the same level of transparency 
for the findings of all inspection activities.
    Drug Supply Chain Quality and Security.--The Committee is 
aware that the FDA continues to make progress in implementing 
the provisions of the DQSA; Title II--Drug Supply Chain 
Security Act while ensuring the quality and safety of 
pharmaceutical products and medicines. FDA's recommendations 
will help drive down costs related to wastage and counterfeit 
drugs as they develop policies to implement barcoding 
technology to track medicines manufactured overseas as well as 
within the United States.
    Current standards related to anti-counterfeiting measures 
as documented by NIH and the International Organization of 
Standardization (ISO), highlight the need to incorporate both 
``overt'' features for authentication of medicines such as 
barcoding and ``covert'' measures which add additional layers 
of anti-counterfeiting protection. ``Covert'' measures include 
techniques such as chemical markers and RFID tags. Furthermore, 
temperature chemical markers can be programmed to reflect the 
effective temperature range for medicines which will provide 
additional quality assurance that the medicines have not been 
exposed to temperature extremes during transportation 
throughout the cold-chain process. If implementation of DQSA 
recommends only barcoding technology to track medicines at the 
product level, then standards to ensure authentication and 
quality of medicines will be several years behind standard 
practice for anti-counterfeiting measures world-wide. The 
Committee strongly urges FDA to incorporate multi-layering 
authentication and anti-counterfeiting techniques in addition 
to barcoding technology as they develop their policies in 
implementing DQSA. The Committee directs FDA to provide a 
report addressing the benefits and costs of incorporating 
multi-layering and covert technologies with barcoding 
technology meeting the provisions of the DQSA for 
pharmaceutical products within 90 days of the enactment of this 
act.
    Duchenne Muscular Dystrophy.--The Committee is encouraged 
by FDA's recent approvals of therapies to treat Duchenne 
Muscular Dystrophy and is aware of the authorities within the 
21st Century Cures Act that clarify the agency's ability to 
allow sponsors of targeted rare disease therapies to use data 
from previously approved applications. The Committee is aware 
of the relevance of this policy to Duchenne and other rare 
disease therapy development and of the agency's work to 
implement the law. The Committee requests an update on these 
efforts within 180 days of enactment of this Act, including a 
description of any challenges or impediments faced by the 
agency in implementing these new authorities
    E.U.-Banned Color Additives Used in Food.--The Committee 
requests a report detailing which color additives used in food 
have not been approved for use within the E.U. but are 
permitted to be sold for consumption in the U.S. The report 
should also list, if known, the primary reasons why the E.U. 
has banned any such additives.
    FDA Partnerships Under FSMA.--The purpose of FSMA is to 
reform the nation's food safety laws to ensure a safe public 
food supply. As FDA continues implementation of FSMA, the 
Committee encourages FDA to work in partnership with existing 
government food safety programs through MOUs to verify 
compliance with FSMA to rules once they are finalized as a way 
to eliminate duplication of activities under the law. In 
addition, the Committee continues to provide $5,000,000 for the 
Food Safety Outreach Program under NIFA and expects that NIFA 
will serve as the sole agency providing food safety training, 
education, outreach, and technical assistance at the farm 
level.
    Federal Employee Conduct.--Public service is a public trust 
that requires federal employees to place ethical principles 
above private gain. Federal employees are reminded that they 
shall not advance a personal agenda or give preferential 
treatment to any outside organization or individual within the 
government programs which they administer. Information that is 
received by the employee, including information from other 
employees, offices, or Congress should be handled in a 
professional and confidential manner in accordance with Code of 
Federal Regulations regarding the basic obligation of public 
service (5 CFR 2635.101).
    Food Contact Notification User Fees.--The funds made 
available by this Act shall include sufficient monies to fund 
the Food and Drug Administration's Food Contact Notification 
Program and shall be deemed to satisfy the requirements of 21 
U.S.C. 348(h)(5)(A).
    Food Date Labeling.--The Committee recognizes that the lack 
of food date labeling standardization has resulted in 
significant consumer confusion. Because food manufacturers use 
a variety of food date labeling phrases, such as ``freshest 
by'' or ``use by,'' consumers frequently throw out food that is 
wholesome and safe, which contributes to the country's food 
waste problem. The Committee encourages FDA and USDA to provide 
outreach and guidance to food manufacturers and retailers on 
food date labeling.
    Foreign High Risk Inspection.--The Committee directs FDA to 
spend no less than the $7,500,000 provided in the FY 2018 
Consolidated Appropriations Act for foreign high-risk 
inspections, will allow FDA's Office of Regulatory Affairs to 
continue efforts to develop and utilize a targeted, risk-based, 
and efficient inspection model that incorporates commercially 
available information, including onsite facility verification, 
about all foreign food, drug, device and tobacco establishments 
for the purpose of regulatory compliance and surveillance of 
manufacturing quality management practices. FDA is directed to 
provide the Committees with an update on these efforts, 
including estimated efficiencies and concerns and plans to 
continue or expand this effort in the future.
    Genomic Editing.--The Committee understands the potential 
benefits to society in the genetic modification of living 
organisms. However, researchers do not yet fully understand all 
the possible side effects of editing the genes of a human 
embryo. Editing of the human germ line may involve serious and 
unquantifiable safety and ethical issues. Federal and non-
federal organizations such as the National Academy of Sciences 
and National Academy of Medicine continue to understand the 
potential risks of genome editing and a broader public 
discussion of the societal and ethical implications of this 
technique is still ongoing. In accordance with the current 
policy at the National Institutes of Health, the Committee 
includes bill language that places a prohibition on the FDA's 
use of funds involving the genetic modification of a human 
embryo. The Committee continues to support a wide range of 
innovations in biomedical research, but will do so in a fashion 
that reflects well-established scientific and ethical 
principles.
    Labeling of Feminine Hygiene Products.--The Committee is 
concerned by the lack of ingredient labeling requirements on 
menstrual hygiene products and strongly encourages the FDA to 
require menstrual hygiene products sold in the U.S. to list 
ingredients on the package.
    Laboratory Developed Tests.--The FDA's draft guidance 
issued on October 3, 2014, titled ``Framework for Regulatory 
Oversight of Laboratory Developed Tests'' (LDTs), puts forth a 
proposed regulatory framework that is a significant shift in 
the way LDTs are regulated. Such a shift deserves input from 
the public, and Congress has been working with stakeholders, 
constituencies, and the FDA to find common ground on regulating 
LDTs. The FDA's guidance circumvents the normal rulemaking 
process and changes expectations for patients, doctors, and 
laboratories for the first time since the Clinical Laboratory 
Improvement Amendments Act was passed in 1988. The Committee 
maintains its position that FDA should suspend further efforts 
to finalize the LDT guidance and continue working with Congress 
to pass legislation that addresses a new pathway for regulation 
of LDTs in a transparent manner.
    Listeria Monocytogenes.--The Committee is aware that FDA is 
in the process of finalizing guidance regarding Listeria 
monocytogenes (Lm). Reducing incidents of listeriosis is an 
important health goal, and the Committee supports efforts to 
accomplish this objective. The Committee directs FDA to 
consider all risk assessments before finalizing the guidance 
and policy on Lm is risk-based and reflects good and achievable 
industry practice.
    Local Port Cooperation.--The Committee directs the FDA to 
work with local governments at high volume ports of entry to 
explore activities which reduce the risk of food borne 
illnesses and enhance the capacity of local officials in 
dealing with food borne threats and report back to the 
Committee within 90 days of enactment of this Act on its 
efforts.
    Mammography Exam Reports.--In November 2011, the National 
Mammography Quality Assurance Advisory Committee approved a 
change to the mammogram patient report and physician report to 
include information regarding an individual's breast density, 
yet this process has not been completed. The Committee 
continues to urge the FDA to implement this change in an 
expedited manner and report to the Committees on the status of 
this change no more than 60 days from the enactment of this 
Act.
    Medical Gas Rulemaking.--Medical gases have been used 
safely to treat medical conditions for over 100 years. In 2012, 
Congress enacted the Food and Drug Administration Safety and 
Innovation Act (FDASIA; P.L. 112-144) requiring the FDA to 
review its regulations applying to pharmaceutical drugs and 
issue final regulations for medical gases not later July 9, 
2016. When FDA missed the FDASIA statutory timeline, Congress 
included language in the FY 2017 Omnibus (P.L. 115-31) 
reinforcing this requirement. Following enactment of the FY 
2017 Omnibus, FDA initiated the process of revising its 
regulations for medical gases, but substantial work remains to 
be done. FDA is urged to complete this work by March 2019.
    Medical Product Shipment Delays.--The Committee 
acknowledges FDA's vital responsibility to conduct risk-based 
screening of imported products under its jurisdiction at ports 
and distribution hubs across the country. However, any delay of 
critically important medical products places risks to patients 
and can unnecessarily disrupt medical services. The Committee 
directs FDA to examine trends in possible delays of medical 
product shipments, and provide a report to the Committees 
within 90 days of enactment, and, if necessary, allocate 
existing resources to adequately staff centralized points of 
entry for imported, time-sensitive medical products so that 
commerce and critical medical care is not unduly delayed. The 
Committee maintains the $300,000 increase provided in the FY 
2018 Consolidated Appropriations Act to help expedite the 
clearance of these products.
    Menu Labeling.--The Committee urges FDA to consider 
opportunities to reduce the burden and add flexibility for 
businesses to implement the Menu Labeling rule and provide 
consumers with certain nutrition information.
    Naloxone to Treat Over-usage of Opioids.--United States 
public health agencies have appropriately highlighted the risk 
of overdose from doses of opioids greater than 90 morphine 
milligram equivalents (MME) per day. Also concerning are the 
hundreds of millions of prescriptions each year of immediate 
release (IR) lower MME opioids such as hydrocodone and 
oxycodone. These opioids are commonly associated with abuse and 
are a common pathway to addiction and also present a risk of 
overdose. Some states have begun to limit the prescribing of 
these IR opioids. An additional consideration might be to 
assess the benefit of co-prescribing naloxone with IR and 
extended release (ER) opioids. Prescribers including dentists 
and other primary care providers have an opportunity to become 
more attuned to the risks of all opioids through the 
consideration of co-prescribing naloxone with each opioid 
prescription. The Committee requests the FDA develop a strategy 
to test this hypothesis and assess the benefit for enacting 
such a policy as a national strategy.
    Nutrient Value of Fish During Pregnancy.--The Committee is 
concerned that the FDA in concert with the EPA in issuance of 
updated advice in January 2017 regarding fish consumption, 
continues to miss an opportunity to promote the positive 
benefit of seafood consumption during pregnancy. The Committee 
directs the FDA to incorporate the specific nutrient value of 
fish consumption in pregnancy on the FDA website ``Eating Fish: 
What Pregnant Women and Parents Should Know.'' This update 
should also be incorporated within other materials developed by 
the FDA. The information on the nutrient value of fish should 
focus on the specific benefits of seafood consumption for 
pregnancy and fetal development. In addition, the Committee 
requests an update to the requirements made within the FY 2018 
Consolidated Appropriation Act report directive which focused 
on the FDA's plan to add information on the nutrient value of 
fish and to develop a plan to assess the efficacy of this 
change on women's dietary choices related to seafood 
consumption, particularly during pregnancy.
    Olive Oil Standards of Identity.--Because of the 
substantial interest in and consumption of olive oil throughout 
the United States, driven in part by the significant 
scientifically-confirmed health benefits of these oils, and the 
fact that the United States has become a globally-important 
producer of olive oils, especially extra virgin olive oil, the 
Committee directs the FDA to establish a separate U.S. Standard 
of Identity for different grades of olive it (e.g. refined, 
virgin and extra virgin) and pomace oils.
    The Committee is particularly concerned with the number of 
different oil state standards for olive oils in the U.S. 
Because the health benefits of olive oil vary by grade, it is 
important to establish a uniform set of the standards to better 
inform and protect consumers. Extra virgin olive oil is the 
highest quality of olive oil and provides the greatest health 
benefits for consumers. The FDA is directed to consult and meet 
with domestic extra virgin olive oil representatives and olive 
oil representatives in developing a science-based Standard of 
Identity for extra virgin olive oil and olive oil, 
respectively, best suited to ensure the integrity of these 
products for U.S. consumers.
    Opioid Abuse.--The abuse, misuse, and diversion of opioid 
painkillers continue to drive an epidemic in the United States. 
The CDC indicates that one American loses his or her battle 
with addiction every twelve and a half minutes. The Committee 
continues to be pleased that, with the Opioids Action Plan, 
Opioid Policy Steering Committee, and several significant 
regulatory actions, the FDA is doing its part to help stem the 
tide of abuse. In order to reduce the risk of addiction, the 
Committee urges the agency to adopt labeling changes for the 
DEA schedule 2 (CII) opioids that explicitly advise that the 
less addictive and less dangerous schedule 3 (CIII) opioids 
should be used before resorting to a CII opioid. The use of 
opioids as first-line therapies for any form of pain has led to 
over-prescribing, and the CDC has made clear that clinicians 
should consider opioid therapy only if expected benefits for 
both pain and function are anticipated to outweigh the risks to 
the patient. The Committee encourages the FDA to support the 
development of alternative and non-addictive alternatives to 
opioid analgesics, and when opioids are medically necessary, 
will continue to incentivize development and use of abuse-
deterrent formulations. The Committee notes that every 
patient's treatment regimen should be tailored by his or her 
doctor to his or her unique needs. The federal government, 
therefore, should promote the full suite of available treatment 
options, including abstinence-based models and non-opioid 
medications. Finally, the Committee continues to be supportive 
of naloxone distribution among trained, licensed healthcare 
professionals and emergency responders. When considering the 
appropriateness of providing naloxone over-the-counter, the 
Committee directs the FDA to ensure that the administration of 
naloxone serves as a point of intervention to spur an honest 
conversation between the patient and his doctor about addiction 
and treatment.
    Opioid Data Warehouse & Analytics.--The opioid crisis 
affects everyone, from those taking prescribed medications for 
acute, intractable, or chronic pain and unwittingly becoming 
addicted, to family members suffering alongside the patients/
addicts. The Commissioner has stated that addressing the 
nation's opioids crisis is his highest priority. However, 
according to President Trump's Commission on Combatting Drug 
Addiction and the Opioid Crisis, FDA does not have separate and 
distinct FY 2018 funding to promote the use of data as 
scientific evidence to support changes in key regulations, such 
as provider education, Risk Evaluation and Mitigation Strategy 
(REMS) authorities, and treatment therapies. Evidence-based 
public health decisions can reverse harmful trends in opioid 
abuse and overdoses rampant in our communities. As such, the 
Committee provides $20,000,000 to collect disparate data to 
create a large-scale data warehouse and perform data analytics 
to better assess vulnerability points in the population, 
anticipate changes in the crisis, and target regulatory changes 
required.
    Patient Experience in Drug Reviews.--The Committee is aware 
the FDA is implementing policies to promote public access to 
information about how patient experience information factored 
into the review of approved products. The Committee supports 
this step forward and encourages FDA to continue refining the 
instrument and ways to improve its visibility. The Committee 
also requests that FDA consider ways to include patient-
experience information in relevant labeling and accompanying 
documentation to inform patient/provider decision making and 
payer determinations.
    Patient Safety and Adverse Events related to Attorney 
Advertisements.--The Committee directs the FDA to explore 
adverse event reports linked to attorney or lead generators 
advertisements for anticoagulant, antiplatelet, blood pressure 
medications, anti-hyperglycemic agents used to anage HbA1c in 
type 2 diabetes or antipsychotic products. The agency is 
directed to share their results with the FTC and submit a 
report to the Committees on Appropriations within 120 days of 
enactment. The Committee also directs FDA and the FTC to 
collaborate to address patient safety concerns presented by 
attorney and lead generators advertisements using their 
respective authorities and expertise.
    Performance Measures.--The Committee directs FDA to comply 
with title 31 of the United States Code, including the 
development of their organizational priority goals and outcomes 
such as performance outcome measures, output measures, 
efficiency measures, and customer service measures.
    Pet Food Imports.--As of December 31, 2015, the FDA had 
received approximately 5,200 complaints of illness related to 
consumption of chicken, duck, or sweet potato jerky treats, 
nearly all of which are imported from China. The reports 
involve more than 6,200 dogs, 26 cats, three humans and include 
more than 1,140 canine deaths. These incidents date back to 
2007. The Committee requests that the FDA provide a timeline of 
all activities associated with the investigation into the pet 
illnesses associated with these products, including any import 
alerts and import refusals, within 60 days of the enactment of 
this Act. In addition, the Committee requests that the agency 
provide semi-annual reports on the status of the investigation 
into these illnesses beginning in July 2017 and continuing 
until the issue has been resolved.
    Prescription Drug Labeling Inserts.--The Committee is aware 
of FDA's previous proposal that would subvert repeatedly 
expressed Congressional intent by permitting the distribution 
of prescription drugs without printed prescribing information 
on or within the packages from which such drugs are to be 
dispensed. The FDA intends to replace such printed labeling 
with an electronic labeling system for the majority of 
prescription drugs. On several occasions, Congress has 
expressly declined to provide the FDA the necessary statutory 
authority to implement this change. As recently as 2012, 
Congress commissioned a GAO report (GAO-13-592) discussing this 
issue. The GAO report concluded that such a change could 
adversely impact public health. Thus, the Committee is very 
concerned that the FDA is moving to promulgate a regulation 
that would generally eliminate printed prescribing information 
inserts for prescription drugs. Therefore, the Committee has 
included a provision prohibiting the FDA from utilizing any 
funds to propose or otherwise promulgate any rule that requires 
or permits any prescription drug or biologic products to be 
distributed without printed prescribing information on or 
within the packaging from which such products are to be 
dispensed, unless such actions are expressly provided by an 
amendment to the FDCA.
    Prescription Drugs and Safe Medication Disposal.--The 
Committee is aware of the FDA review of policies and 
recommendations for the safe disposal of unused medications. 
This is an important part of comprehensive efforts to reduce 
the diversion of prescription drugs, including opioids, in the 
home, health care delivery settings, and other locations. The 
Committee is aware of advanced technologies, including drug 
deactivation bags developed with NIH support, which may be 
effective options for improving safe disposal and encourages 
the FDA to include these options in the ongoing FDA initiative.
    Standard of Identity Activities for Foods.--Of the amount 
provided for CFSAN, the Committee requires an increase of 
$3,000,000 for the Office of Nutrition and Food Labeling to 
prioritize efforts regarding standards of identity and related 
product labeling.
    Sunscreen Ingredients.--The Committee remains significantly 
concerned that the FDA has not approved a new over-the-counter 
(OTC) sunscreen ingredient since the 1990s despite increased 
skin cancer rates in the United States, the Surgeon General's 
2014 Call to Action to Prevent Skin Cancer, unanimous passage 
of the Sunscreen Innovation Act (SIA) in Congress and having a 
number of ingredients pending approval for more than 15 years. 
The Committee directs the FDA to continue to work with sponsors 
to reach a path forward on a testing regimen for sunscreen 
ingredients that is consistent with current scientific 
standards, has a proven track record with sunscreen 
ingredients, and appropriately balances the benefit of 
additional skin cancer prevention tools.
    Stem Cell Treatment and Storage.--As the agency refines its 
comprehensive regenerative medicine policy framework, the 
Committee directs the FDA to brief the Committees within 30 
days of enactment on how FDA regulates human stem cell 
harvesting compared to how the agency regulates the treatment 
and storage of human blood.
    Syringe Sterility.--The Committee is pleased that the FDA 
has finalized guidance addressing the repackaging and 
compounding of biologics, a critical step toward ensuring that 
patients receive safe drugs. It remains concerned, however, 
that while the guidance establishes procedures to ensure the 
sterility and stability of the drug itself, it does little to 
address the sterility of the delivery mechanism of the drug or 
the packaging in which the drug will be delivered to the 
patient. This is particularly concerning for biologics that are 
injected into a closed system, such as the spine or the eye, 
where infection cannot easily be fought by the immune system. 
Therefore, as the FDA revisits the development of Good 
Manufacturing Practices for compounded drugs, the Committee 
strongly encourages the adoption of guidelines that mimic 
regulations governing the sterility of the container and 
packaging of sterile injectable biologics that currently apply 
to biologics manufacturers. For example, at 21 C.F.R. 200.50, 
the FDA requires that ``containers of ophthalmic preparations 
be sterile'' and ``packaged so as to maintain sterility until 
the package is opened.'' While there is always a risk of 
adverse outcomes when drugs are repackaged or compounded, that 
risk is significantly increased when those drugs are biologics, 
and therefore, all necessary precautions should be taken by the 
FDA to reduce those risks.
    Tobacco Product Enforcement.--The Committee is concerned 
with the rise of new Electronic Nicotine Delivery Systems 
(ENDS) attracting new youth smokers in record numbers. This 
demographic shift places at risk the innovation of harm 
reducing technology that has the potential to benefit the 
greater public health. The Committee directs FDA to increase 
investigations and enforcement actions against entities that 
market tobacco products to youth. The Committee requests FDA 
provide a detailed report of its enforcement efforts in this 
area, including: data on the number of suspected new or 
modified vapor products introduced after August 8, 2016; data 
on any and all enforcement actions taken with respect to new or 
modified vapor products introduced into the market after August 
8, 2016; the agency's plan going forward to enforce the Act as 
to new or modified products entering the market after August 8, 
2016; and the resource allocation (personnel and dollars spent) 
to ensure new or modified vapor products are not entering the 
marketplace without proper authorization. The Committee 
requests this information 60 days after the date of enactment 
of this Act.
    Tobacco Product Standards.--The Committee is concerned 
about the feasibility of achieving a 1 parts per million level 
for N-nitrosonornicotine levels as established in the proposed 
product standard rule dated January 23, 2017 (82 Fed. Reg. 
8004). The Committee encourages FDA to work with stakeholders 
involved in the production and growth of these products to 
determine a reasonable level while fulfilling its statutory 
mission to protect public health.
    Tobacco Product User Fees.--The Committee directs the FDA 
to submit a report to the Committees and made publicly 
available online on the planned expenditure and obligation of 
user fees for the current fiscal year within 60 days of 
enactment of this Act. The report shall include the amount of 
carryover and unobligated balances from the prior fiscal year 
and planned obligations and expenditures for the current fiscal 
year based upon the total of the new and existing amounts 
available. The report shall identify the type and amount of 
activities, contracts, and objectives to be implemented, 
including but not limited to public education campaigns, 
scientific research, communications, and product application 
processing and review for the current and prior fiscal year. 
The report shall also include a status of submitted, pending, 
and approved tobacco product applications per each regulatory 
pathway and class as defined by the Tobacco Control Act, and 
subsequent regulations, for the past three fiscal years and 
planned for the current fiscal year.
    Virtual clinical trials.--Novel digital technologies are 
facilitating the use of virtual clinical trials. By reducing 
geographical barriers, these trials can allow populations 
historically underrepresented in clinical research, such as the 
elderly and those living in rural areas or with limited 
mobility, to participate in clinical research. Through the use 
of telemedicine, connected sensors, patient engagement 
applications and direct data capture tools, virtual trials are 
conducted geographically near the patient. Reducing or 
eliminating on-site visits has the potential to increase 
patient convenience and lower study costs, while the 
implementation of new technologies is expected to increase data 
quality. The Committee recommends that the impacted Centers at 
FDA actively collaborate to advance and expand the use of 
virtual trials and the acceptance of the data generated from 
these trials. The FDA shall provide an annual report of their 
activities to advance digital technologies and the impact on 
patient access to clinical trials.
    Drug Efficiency Study Implementation (DESI) Process.--While 
the Committee agrees with FDA's goal of ensuring all drugs have 
current approvals, the Committee is concerned that the DESI 
process can at times lead to the unnecessary removal of 
important drugs from the marketplace. The Committee encourages 
the FDA to reexamine the process for DESI manufacturers as 
these companies are working through the FDA process for 
obtaining an approved new drug application or abbreviated new 
drug application.
    CVM Guidance Documents.--The FDA Center for Veterinary 
Medicine (CVM) recently updated its list of guidance topics to 
include possible new topics for consideration as well as 
revisions to existing FDA-CVM guidance documents. The Committee 
encourages FDA to seek input from relevant industry 
stakeholders and appropriate scientific experts who can assist 
FDA in the development of and any revisions to guidance 
documents.
    In Silico Clinical Trials.--The Committee appreciates FDA's 
continued support for and use of modeling and simulation in 
clinical trials, as well as its establishment of an affiliation 
agreement with an academic institution with expertise in this 
field. This partnership allows the development of personalized 
medical interventions, optimizes the regulatory process with in 
silico clinical trials and bridges gaps in the current 
regulatory infrastructure. The Committee urges FDA to formalize 
this important function in improving outcomes and reducing 
costs inherent to drug and device discovery.
    Dietary Fiber Sources.--While FDA has issued final guidance 
on dietary fiber, it has not provided final guidance on 
intrinsic and intact fiber sources nor has the Agency finalized 
its conclusions on the status of pending fiber ingredients. 
Additionally, FDA has not finalized its proposed compliance 
date extension. This lack of regulatory clarity is causing 
significant confusion and market disruptions. Therefore, FDA 
shall allow up to three years after final conclusions on the 
pending fiber ingredients to allow sufficient time for food 
manufacturers to comply.

                        BUILDINGS AND FACILITIES

 
 
 
2018 appropriation....................................       $11,788,000
2019 budget estimate..................................        11,788,000
Provided in the bill..................................        11,788,000
Comparison:
    2018 appropriation................................             - - -
    2019 budget estimate..............................             - - -
 

                          COMMITTEE PROVISIONS

    For Buildings and Facilities of the Food and Drug 
Administration, the Committee provides $11,788,000.

                   FDA INNOVATION ACCOUNT, CURES ACT

 
 
 
2018 appropriation....................................       $60,000,000
2019 budget estimate..................................        70,000,000
Provided in the bill..................................        70,000,000
Comparison:
    2018 appropriation................................       +10,000,000
    2019 budget estimate..............................             - - -
 

                          COMMITTEE PROVISIONS

    For the FDA Innovation Account as authorized in the 21st 
Century Cures Act, the Committee provides an appropriation of 
$70,000,000.

                          INDEPENDENT AGENCIES

                  Commodity Futures Trading Commission

 
 
 
2018 appropriation....................................      $249,000,000
2019 budget estimate..................................       281,500,000
Provided in the bill..................................       255,000,000
Comparison:
    2018 appropriation................................        +6,000,000
    2019 budget estimate..............................       -26,500,000
 

                          COMMITTEE PROVISIONS

    For the Commodity Futures Trading Commission (CFTC), the 
Committee provides an appropriation of $255,000,000, of which 
$50,000,000 is for the purchase of IT and $3,000,000 is for the 
Inspector General. Overhead for the Inspector General shall not 
exceed $350,000. The Committee provides a funding increase for 
the LabCFTC initiative, cybersecurity, and clearinghouse 
examinations.
    Cross-Border Harmonization.--The Committee strongly 
encourages the CFTC to work with the Securities and Exchange 
Commission (SEC) to harmonize the definition of a ``US person'' 
and exempt non-US regulated funds from any definition. 
Currently, the definition of a ``US person'' differs between 
the two agencies, which can result in operational challenges 
and potentially different regulatory treatment of entities 
transacting in otherwise similar instruments. Global firms face 
significant costs and burdens if the CFTC's and SEC's 
regulatory approaches produce different outcomes regarding 
whether an entity or transaction would be subject to the Dodd-
Frank Act. Derivatives transactions for swaps and security-
based swaps that are traded typically by the same trading desk 
or desks should not be analyzed differently. The Committee 
urges these agencies to work together in an expeditious manner 
toward a consistent definition of ``US person''.
    Virtual Currency Monitoring.--The advent of virtual 
currency markets has presented several new challenges for the 
Commission in its efforts to carry out its mission. Each 
virtual currency derivatives contract ties its price in some 
way, through various settlement processes, to the price of the 
virtual currency on the cash market. This underlying cash 
market is relatively nascent, and the exchanges operating in 
the cash market remain largely unregulated with the Commission 
having only limited statutory authority over the cash market. 
Those features of the underlying cash markets have led some 
U.S. regulators to express concern about the potential for 
fraud and manipulation in the cash and futures markets; and 
other risks that fall within the purview of the Commission, 
such as risks to centralized counterparty clearing 
organizations. Therefore, the Committee encourages the 
Commission's ongoing efforts, in coordination with other 
financial regulators like the Securities and Exchange 
Commission, to monitor virtual currencies, such as Bitcoin 
futures contracts and the underlying cash markets to which 
these futures contracts are settled; and to detect, 
investigate, and prosecute fraud and manipulation in these 
markets.
    Swap Dealer de Minimis.--The Committee directs the 
Commission to continue to resolve the Swap Dealer de Minimis 
threshold and provide relief to derivatives end-users.

                       Farm Credit Administration

                 LIMITATION ON ADMINISTRATIVE EXPENSES

 
 
 
2018 limitation.......................................     ($70,600,000)
2019 budget estimate..................................      (74,600,000)
Provided in the bill..................................      (74,600,000)
Comparison:
    2018 limitation...................................        +4,000,000
    2019 budget estimate..............................             - - -
 

                          COMMITTEE PROVISIONS

    For a limitation on the expenses of the Farm Credit 
Administration (FCA), the Committee provides $74,600,000.

                               TITLE VII

                           GENERAL PROVISIONS

             (INCLUDING RESCISSIONS AND TRANSFERS OF FUNDS)

    The General Provisions contained in the accompanying bill 
for fiscal year 2019 are fundamentally the same as those 
included in last year's appropriations bill.
    The following general provisions are included in the bill:
    Section 701: Limitation on the purchase of passenger motor 
vehicles.
    Section 702: Transfer authority regarding the Working 
Capital Fund.
    Section 703: Limitation on certain obligations.
    Section 704: Indirect cost rates for cooperative agreements 
with nonprofit institutions.
    Section 705: Disbursement of rural development loans.
    Section 706: Authority of the Chief Information Officer 
relating to new IT systems.
    Section 707: Language regarding crop programs.
    Section 708: Rural Utility Service borrower eligibility.
    Section 709: Limitation on certain I.T. funds.
    Section 710: Prohibition on first-class airline travel.
    Section 711: Use of funds authorized by the Commodity 
Credit Corporation Charter Act.
    Section 712: Funding for advisory committees.
    Section 713: Indirect costs for competitive agricultural 
research grants.
    Section 714: Language regarding IT systems regulations.
    Section 715: Language on Section 32 activities.
    Section 716: Language on user fee proposals without 
offsets.
    Section 717: Language on reprogramming.
    Section 718: Language on fees for the business and industry 
guaranteed loan program.
    Section 719: Language on questions for the record.
    Section 720: Language regarding prepackaged news stories.
    Section 721: Language on prohibition on paid details in 
excess of 60 days.
    Section 722: Language regarding spending plans.
    Section 723: Language on certain unobligated balances.
    Section 724: Language regarding Single Family Housing 
Direct Loan Program.
    Section 725: Language regarding USDA loan programs.
    Section 726: Transfer authority regarding the Working 
Capital Fund.
    Section 727: Language regarding purchases made through 
Child Nutrition Programs.
    Section 728: Language regarding water and waste disposal 
sanitation loans.
    Section 729: Language regarding research programs.
    Section 730: Language regarding housing loan programs.
    Section 731: Language regarding consumer information.
    Section 732: Language regarding genetic modification.
    Section 733: Language regarding beverage production 
process.
    Section 734: Language regarding emergency food aid.
    Section 735: Language regarding Rural Utility Service.
    Section 736: Language regarding meat and poultry 
regulation.
    Section 737: Language regarding research and evaluation 
plan.
    Section 738: Language regarding the Commodity Exchange Act.
    Section 739: Language regarding audits.
    Section 740: Language regarding FDA regulations.
    Section 741: Language regarding animal research.
    Section 742: Language regarding the Food Security Act.
    Section 743: Language regarding domestic preference.
    Section 744: Language regarding community eligibility.
    Section 745: Language regarding lobbying.
    Section 746: Language regarding office operations.
    Section 747: Language regarding housing programs.
    Section 748: Language regarding child nutrition programs.
    Section 749: Language regarding community eligibility.
    Section 750: Language regarding community eligibility.
    Section 751: Language regarding poultry products.
    Section 752: Language regarding FDA regulation.
    Section 753: Language regarding fund access.
    Section 754: Language regarding the citrus greening.
    Section 755: Language regarding the FDA regulation.
    Section 756: Language regarding geographic areas.
    Section 757: Language regarding child nutrition.
    Section 758: Language regarding the veteran farming.
    Section 759: Language regarding broadband expansion.
    Section 760: Language regarding cost-benefit analysis.
    Section 761: Language regarding biomass crop assistance 
program.
    Section 762: Language regarding FDA regulation.
    Section 763: Language regarding dietary guidelines.
    Section 764: Language regarding food labeling.
    Section 765: Language regarding the availability of funds.
    Section 766: Language regarding genetically engineered 
labeling.
    Section 767: Language regarding the school breakfast 
program.
    Section 768: Language regarding the SNAP program.
    Section 769: Language regarding premium cigars.
    Section 770: Language regarding cigars.
    Section 771: Language regarding the Federal Food, Drug, and 
Cosmetic Act.
    Section 772: Language regarding tobacco product standards.
    Section 773: Language regarding the labeling of tobacco 
products.
    Section 774: Language regarding tobacco regulation.
    Section 775: Language regarding age verification of tobacco 
purchases.
    Section 776: Language regarding a report.
    Section 777: Language regarding a report.
    Section 778: Language regarding the spending reduction 
account.

              HOUSE OF REPRESENTATIVES REPORT REQUIREMENTS

         STATEMENT OF GENERAL PERFORMANCE GOALS AND OBJECTIVES

    Pursuant to clause 3(c)(4) of rule XIII of the Rules of the 
House of Representatives, the following is a statement of 
general performance goals and objectives for which this measure 
authorizes funding:
    The Committee on Appropriations considers program 
performance, including a program's success in developing and 
attaining outcome-related goals and objectives, in developing 
funding recommendations.

                              RESCISSIONS

    Pursuant to clause 3(f)(2) of rule XIII of the Rules of the 
House of Representatives, the following lists the rescissions 
of unexpended balances included in the accompanying bill:

------------------------------------------------------------------------
                 Program or activity                         Amount
------------------------------------------------------------------------
USDA Cushion of Credit...............................        $50,000,000
USDA FNS (prior year balances).......................       $300,000,000
------------------------------------------------------------------------

                           TRANSFERS OF FUNDS

    Pursuant to clause 3(f)(2) of rule XIII of the Rules of the 
House of Representatives, the following list includes the 
transfers of unexpended balances included in the accompanying 
bill:
    1. Departmental Administration.--The bill requires 
reimbursement for expenses related to certain hearings.
    2. Office of the Assistant Secretary for Congressional 
Relations.--The bill allows a portion of the funds appropriated 
to the Office of the Assistant Secretary to be transferred to 
agencies.
    3. Hazardous Materials Management.--The bill allows the 
funds appropriated to the Department for hazardous materials 
management to be transferred to agencies of the Department as 
required.
    4. Animal and Plant Health Inspection Service.--Authority 
is included to enable the Secretary of Agriculture to transfer 
from other appropriations or funds of the Department such sums 
as may be necessary to combat emergency outbreaks of certain 
diseases of animals, plants, and poultry.
    5. Funds for Strengthening Markets, Income, and Supply.--
The bill limits the transfer of section 32 funds to purposes 
specified in the bill.
    6. Farm Service Agency Salaries and Expenses.--The bill 
provides that funds provided to other accounts in the agency 
may be merged with the salaries and expenses account of the 
Farm Service Agency.
    7. Dairy Indemnity Program.--The bill authorizes the 
transfer of funds to the Commodity Credit Corporation, by 
reference.
    8. Agricultural Credit Insurance Fund Program Account.--The 
bill provides funds to be transferred to the Farm Service 
Agency.
    9. Commodity Credit Corporation.--The bill includes 
language allowing certain funds to be transferred to the 
Foreign Agricultural Service for information resource 
management activities.
    10. Rural Development Salaries and Expenses.--The bill 
provides that prior year balances from certain accounts shall 
be transferred to and merged with this account.
    11. Rural Housing Insurance Fund Program Account, 
Intermediary Relending Program Fund Account, and Rural 
Electrification and Telecommunications Program Account.--The 
bill provides funds in this account shall be transferred to the 
salaries and expenses of Rural Development.
    12. Child Nutrition Programs.--The bill includes authority 
to transfer section 32 funds to these programs.
    13. Foreign Agricultural Service, Salaries and Expenses.--
The bill allows for the transfer of funds from the Commodity 
Credit Corporation Export Loan Program Account.
    14. Food for Peace Title I Direct Credit and Food for 
Progress Program Account.--The bill allows funds to be 
transferred to the Farm Service Agency, Salaries and Expenses 
account. The bill also provides that funds made available for 
the cost of title I agreements and for title I ocean freight 
differential may be used interchangeably.
    15. Commodity Credit Corporation Export Loans Program.--The 
bill provides for transfer of funds to the Foreign Agricultural 
Service and to the Farm Service Agency for overhead expenses 
associated with credit reform.
    16. Food and Drug Administration, Salaries and Expenses.--
The bill allows funds to be transferred among activities.
    17. General Provisions.--The bill allows unobligated 
balances of discretionary funds to be transferred to the 
Working Capital Fund.

   DISCLOSURE OF EARMARKS AND CONGRESSIONALLY DIRECTED SPENDING ITEMS

    Neither the bill nor this report contain any congressional 
earmarks, limited tax benefits, or limited tariff benefits as 
defined in clause 9 of rule XXI of the Rules of the House of 
Representatives.

          Compliance With Rule XIII, Cl. 3(e) (Ramseyer Rule)

    In compliance with clause 3(e) of rule XIII of the Rules of 
the House of Representatives, changes in existing law made by 
the bill, as reported, are shown as follows (existing law 
proposed to be omitted is enclosed in black brackets, new 
matter is printed in italic, existing law in which no change is 
proposed is shown in roman):

              RICHARD B. RUSSELL NATIONAL SCHOOL LUNCH ACT

           *       *       *       *       *       *       *
               NUTRITIONAL AND OTHER PROGRAM REQUIREMENTS

    Sec. 9. (a)(1)(A) Lunches served by schools participating 
in the school lunch program under this Act shall meet minimum 
nutritional requirements prescribed by the Secretary on the 
basis of tested nutritional research, except that the minimum 
nutritional requirements--
            (i) shall not be construed to prohibit the 
        substitution of foods to accommodate the medical or 
        other special dietary needs of individual students; and
            (ii) shall, at a minimum, be based on the weekly 
        average of the nutrient content of school lunches.
    (B) The Secretary shall provide technical assistance and 
training, including technical assistance and training in the 
preparation of lower-fat versions of foods commonly used in the 
school lunch program under this Act, to schools participating 
in the school lunch program to assist the schools in complying 
with the nutritional requirements prescribed by the Secretary 
pursuant to subparagraph (A) and in providing appropriate meals 
to children with medically certified special dietary needs. The 
Secretary shall provide additional technical assistance to 
schools that are having difficulty maintaining compliance with 
the requirements.
            (2) Fluid milk.--
                    (A) In general.--Lunches served by schools 
                participating in the school lunch program under 
                this Act--
                            (i) shall offer students a variety 
                        of fluid milk. Such milk shall be 
                        consistent with the most recent Dietary 
                        Guidelines for Americans published 
                        under section 301 of the National 
                        Nutrition Monitoring and Related 
                        Research Act of 1990 (7 U.S.C. 5341);
                            (ii) may offer students flavored 
                        and unflavored fluid milk and lactose-
                        free fluid milk; and
                            (iii) shall provide a substitute 
                        for fluid milk for students whose 
                        disability restricts their diet, on 
                        receipt of a written statement from a 
                        licensed physician that identifies the 
                        disability that restricts the student's 
                        diet and that specifies the substitute 
                        for fluid milk.
                    (B) Substitutes.--
                            (i) Standards for substitution.--A 
                        school may substitute for the fluid 
                        milk provided under subparagraph (A), a 
                        nondairy beverage that is nutritionally 
                        equivalent to fluid milk and meets 
                        nutritional standards established by 
                        the Secretary (which shall, among other 
                        requirements to be determined by the 
                        Secretary, include fortification of 
                        calcium, protein, vitamin A, and 
                        vitamin D to levels found in cow's 
                        milk) for students who cannot consume 
                        fluid milk because of a medical or 
                        other special dietary need other than a 
                        disability described in subparagraph 
                        (A)(iii).
                            (ii) Notice.--The substitutions may 
                        be made if the school notifies the 
                        State agency that the school is 
                        implementing a variation allowed under 
                        this subparagraph, and if the 
                        substitution is requested by written 
                        statement of a medical authority or by 
                        a student's parent or legal guardian 
                        that identifies the medical or other 
                        special dietary need that restricts the 
                        student's diet, except that the school 
                        shall not be required to provide 
                        beverages other than beverages the 
                        school has identified as acceptable 
                        substitutes.
                            (iii) Excess expenses borne by 
                        school food authority.--Expenses 
                        incurred in providing substitutions 
                        under this subparagraph that are in 
                        excess of expenses covered by 
                        reimbursements under this Act shall be 
                        paid by the school food authority.
                    (C) Restrictions on sale of milk 
                prohibited.--A school that participates in the 
                school lunch program under this Act shall not 
                directly or indirectly restrict the sale or 
                marketing of fluid milk products by the school 
                (or by a person approved by the school) at any 
                time or any place--
                            (i) on the school premises; or
                            (ii) at any school-sponsored event.
    (3) Students in senior high schools that participate in the 
school lunch program under this Act (and, when approved by the 
local school district or nonprofit private schools, students in 
any other grade level) shall not be required to accept offered 
foods they do not intend to consume, and any such failure to 
accept offered foods shall not affect the full charge to the 
student for a lunch meeting the requirements of this subsection 
or the amount of payments made under this Act to any such 
school for such lunch.
            (4) Provision of information.--
                    (A) Guidance.--Prior to the beginning of 
                the school year beginning July 2004, the 
                Secretary shall issue guidance to States and 
                school food authorities to increase the 
                consumption of foods and food ingredients that 
                are recommended for increased serving 
                consumption in the most recent Dietary 
                Guidelines for Americans published under 
                section 301 of the National Nutrition 
                Monitoring and Related Research Act of 1990 (7 
                U.S.C. 5341).
                    (B) Rules.--Not later than 2 years after 
                the date of enactment of this paragraph, the 
                Secretary shall promulgate rules, based on the 
                most recent Dietary Guidelines for Americans, 
                that reflect specific recommendations, 
                expressed in serving recommendations, for 
                increased consumption of foods and food 
                ingredients offered in school nutrition 
                programs under this Act and the Child Nutrition 
                Act of 1966 (42 U.S.C. 1771 et seq.).
                    (C) Procurement and processing of food 
                service products and commodities.--The 
                Secretary shall--
                            (i) identify, develop, and 
                        disseminate to State departments of 
                        agriculture and education, school food 
                        authorities, local educational 
                        agencies, and local processing 
                        entities, model product specifications 
                        and practices for foods offered in 
                        school nutrition programs under this 
                        Act and the Child Nutrition Act of 1966 
                        (42 U.S.C. 1771 et seq.) to ensure that 
                        the foods reflect the most recent 
                        Dietary Guidelines for Americans 
                        published under section 301 of the 
                        National Nutrition Monitoring and 
                        Related Research Act of 1990 (7 U.S.C. 
                        5341);
                            (ii) not later than 1 year after 
                        the date of enactment of this 
                        subparagraph--
                                    (I) carry out a study to 
                                analyze the quantity and 
                                quality of nutritional 
                                information available to school 
                                food authorities about food 
                                service products and 
                                commodities; and
                                    (II) submit to Congress a 
                                report on the results of the 
                                study that contains such 
                                legislative recommendations as 
                                the Secretary considers 
                                necessary to ensure that school 
                                food authorities have access to 
                                the nutritional information 
                                needed for menu planning and 
                                compliance assessments; and
                            (iii) to the maximum extent 
                        practicable, in purchasing and 
                        processing commodities for use in 
                        school nutrition programs under this 
                        Act and the Child Nutrition Act of 1966 
                        (42 U.S.C. 1771 et seq.), purchase the 
                        widest variety of healthful foods that 
                        reflect the most recent Dietary 
                        Guidelines for Americans.
            (5) Water.--Schools participating in the school 
        lunch program under this Act shall make available to 
        children free of charge, as nutritionally appropriate, 
        potable water for consumption in the place where meals 
        are served during meal service.
    (b)(1)(A) Not later than June 1 of each fiscal year, the 
Secretary shall prescribe income guidelines for determining 
eligibility for free and reduced price lunches during the 12-
month period beginning July 1 of such fiscal year and ending 
June 30 of the following fiscal year. The income guidelines for 
determining eligibility for free lunches shall be 130 percent 
of the applicable family size income levels contained in the 
nonfarm income poverty guidelines prescribed by the Office of 
Management and Budget, as adjusted annually in accordance with 
subparagraph (B). The income guidelines for determining 
eligibility for reduced price lunches for any school year shall 
be 185 percent of the applicable family size income levels 
contained in the nonfarm income poverty guidelines prescribed 
by the Office of Management and Budget, as adjusted annually in 
accordance with subparagraph (B). The Office of Management and 
Budget guidelines shall be revised at annual intervals, or at 
any shorter interval deemed feasible and desirable.
    (B) The revision required by subparagraph (A) of this 
paragraph shall be made by multiplying--
            (i) the official poverty line (as defined by the 
        Office of Management and Budget); by
            (ii) the percentage change in the Consumer Price 
        Index during the annual or other interval immediately 
        preceding the time at which the adjustment is made.
Revisions under this subparagraph shall be made not more than 
30 days after the date on which the consumer price index data 
required to compute the adjustment becomes available.
    (2)(A) Following the determination by the Secretary under 
paragraph (1) of this subsection of the income eligibility 
guidelines for each school year, each State educational agency 
shall announce the income eligibility guidelines, by family 
size, to be used by schools in the State in making 
determinations of eligibility for free and reduced price 
lunches. Local school authorities shall, each year, publicly 
announce the income eligibility guidelines for free and reduced 
price lunches on or before the opening of school.
            (B) Applications and descriptive material.--
                    (i) In general.--Applications for free and 
                reduced price lunches, in such form as the 
                Secretary may prescribe or approve, and any 
                descriptive material, shall be distributed to 
                the parents or guardians of children in 
                attendance at the school, and shall contain 
                only the family size income levels for reduced 
                price meal eligibility with the explanation 
                that households with incomes less than or equal 
                to these values would be eligible for free or 
                reduced price lunches.
                    (ii) Income eligibility guidelines.--Forms 
                and descriptive material distributed in 
                accordance with clause (i) may not contain the 
                income eligibility guidelines for free lunches.
                    (iii) Contents of descriptive material.--
                            (I) In general.--Descriptive 
                        material distributed in accordance with 
                        clause (i) shall contain a notification 
                        that--
                                    (aa) participants in the 
                                programs listed in subclause 
                                (II) may be eligible for free 
                                or reduced price meals; and
                                    (bb) documentation may be 
                                requested for verification of 
                                eligibility for free or reduced 
                                price meals.
                            (II) Programs.--The programs 
                        referred to in subclause (I)(aa) are--
                                    (aa) the special 
                                supplemental nutrition program 
                                for women, infants, and 
                                children established by section 
                                17 of the Child Nutrition Act 
                                of 1966 (42 U.S.C. 1786);
                                    (bb) the supplemental 
                                nutrition assistance program 
                                established under the Food and 
                                Nutrition Act of 2008 (7 U.S.C. 
                                2011 et seq.);
                                    (cc) the food distribution 
                                program on Indian reservations 
                                established under section 4(b) 
                                of the Food and Nutrition Act 
                                of 2008 (7 U.S.C. 2013(b)); and
                                    (dd) a State program funded 
                                under the program of block 
                                grants to States for temporary 
                                assistance for needy families 
                                established under part A of 
                                title IV of the Social Security 
                                Act (42 U.S.C. 601 et seq.).
            (3) Household applications.--
                    (A) Definition of household application.--
                In this paragraph, the term ``household 
                application'' means an application for a child 
                of a household to receive free or reduced price 
                school lunches under this Act, or free or 
                reduced price school breakfasts under the Child 
                Nutrition Act of 1966 (42 U.S.C. 1771 et seq.), 
                for which an eligibility determination is made 
                other than under paragraph (4) or (5).
                    (B) Eligibility determination.--
                            (i) In general.--An eligibility 
                        determination shall be made on the 
                        basis of a complete household 
                        application executed by an adult member 
                        of the household or in accordance with 
                        guidance issued by the Secretary.
                            (ii) Electronic signatures and 
                        applications.--A household application 
                        may be executed using an electronic 
                        signature if--
                                    (I) the application is 
                                submitted electronically; and
                                    (II) the electronic 
                                application filing system meets 
                                confidentiality standards 
                                established by the Secretary.
                    (C) Children in household.--
                            (i) In general.--The household 
                        application shall identify the names of 
                        each child in the household for whom 
                        meal benefits are requested.
                            (ii) Separate applications.--A 
                        State educational agency or local 
                        educational agency may not request a 
                        separate application for each child in 
                        the household that attends schools 
                        under the same local educational 
                        agency.
                    (D) Verification of sample.--
                            (i) Definitions.--In this 
                        subparagraph:
                                    (I) Error prone 
                                application.--The term ``error 
                                prone application'' means an 
                                approved household application 
                                that--
                                            (aa) indicates 
                                        monthly income that is 
                                        within $100, or an 
                                        annual income that is 
                                        within $1,200, of the 
                                        income eligibility 
                                        limitation for free or 
                                        reduced price meals; or
                                            (bb) in lieu of the 
                                        criteria established 
                                        under item (aa), meets 
                                        criteria established by 
                                        the Secretary.
                                    (II) Non-response rate.--
                                The term ``non-response rate'' 
                                means (in accordance with 
                                guidelines established by the 
                                Secretary) the percentage of 
                                approved household applications 
                                for which verification 
                                information has not been 
                                obtained by a local educational 
                                agency after attempted 
                                verification under 
                                subparagraphs (F) and (G).
                            (ii) Verification of sample.--Each 
                        school year, a local educational agency 
                        shall verify eligibility of the 
                        children in a sample of household 
                        applications approved for the school 
                        year by the local educational agency, 
                        as determined by the Secretary in 
                        accordance with this subsection.
                            (iii) Sample size.--Except as 
                        otherwise provided in this paragraph, 
                        the sample for a local educational 
                        agency for a school year shall equal 
                        the lesser of--
                                    (I) 3 percent of all 
                                applications approved by the 
                                local educational agency for 
                                the school year, as of October 
                                1 of the school year, selected 
                                from error prone applications; 
                                or
                                    (II) 3,000 error prone 
                                applications approved by the 
                                local educational agency for 
                                the school year, as of October 
                                1 of the school year.
                            (iv) Alternative sample size.--
                                    (I) In general.--If the 
                                conditions described in 
                                subclause (IV) are met, the 
                                verification sample size for a 
                                local educational agency shall 
                                be the sample size described in 
                                subclause (II) or (III), as 
                                determined by the local 
                                educational agency.
                                    (II)  3,000/3 percent 
                                option.--The sample size 
                                described in this subclause 
                                shall be the lesser of 3,000, 
                                or 3 percent of, applications 
                                selected at random from 
                                applications approved by the 
                                local educational agency for 
                                the school year, as of October 
                                1 of the school year.
                                    (III)  1,000/1 percent plus 
                                option.--
                                            (aa) In general.--
                                        The sample size 
                                        described in this 
                                        subclause shall be the 
                                        sum of--
                                                    (AA) the 
                                                lesser of 
                                                1,000, or 1 
                                                percent of, all 
                                                applications 
                                                approved by the 
                                                local 
                                                educational 
                                                agency for the 
                                                school year, as 
                                                of October 1 of 
                                                the school 
                                                year, selected 
                                                from error 
                                                prone 
                                                applications; 
                                                and
                                                    (BB) the 
                                                lesser of 500, 
                                                or \1/2\ of 1 
                                                percent of, 
                                                applications 
                                                approved by the 
                                                local 
                                                educational 
                                                agency for the 
                                                school year, as 
                                                of October 1 of 
                                                the school 
                                                year, that 
                                                provide a case 
                                                number (in lieu 
                                                of income 
                                                information) 
                                                showing 
                                                participation 
                                                in a program 
                                                described in 
                                                item (bb) 
                                                selected from 
                                                those approved 
                                                applications 
                                                that provide a 
                                                case number (in 
                                                lieu of income 
                                                information) 
                                                verifying the 
                                                participation.
                                            (bb) Programs.--The 
                                        programs described in 
                                        this item are--
                                                    (AA) the 
                                                supplemental 
                                                nutrition 
                                                assistance 
                                                program 
                                                established 
                                                under the Food 
                                                and Nutrition 
                                                Act of 2008 (7 
                                                U.S.C. 2011 et 
                                                seq.);
                                                    (BB) the 
                                                food 
                                                distribution 
                                                program on 
                                                Indian 
                                                reservations 
                                                established 
                                                under section 
                                                4(b) of the 
                                                Food and 
                                                Nutrition Act 
                                                of 2008 (7 
                                                U.S.C. 
                                                2013(b)); and
                                                    (CC) a 
                                                State program 
                                                funded under 
                                                the program of 
                                                block grants to 
                                                States for 
                                                temporary 
                                                assistance for 
                                                needy families 
                                                established 
                                                under part A of 
                                                title IV of the 
                                                Social Security 
                                                Act (42 U.S.C. 
                                                601 et seq.) 
                                                that the 
                                                Secretary 
                                                determines 
                                                complies with 
                                                standards 
                                                established by 
                                                the Secretary 
                                                that ensure 
                                                that the 
                                                standards under 
                                                the State 
                                                program are 
                                                comparable to 
                                                or more 
                                                restrictive 
                                                than those in 
                                                effect on June 
                                                1, 1995.
                                    (IV) Conditions.--The 
                                conditions referred to in 
                                subclause (I) shall be met for 
                                a local educational agency for 
                                a school year if--
                                            (aa) the 
                                        nonresponse rate for 
                                        the local educational 
                                        agency for the 
                                        preceding school year 
                                        is less than 20 
                                        percent; or
                                            (bb) the local 
                                        educational agency has 
                                        more than 20,000 
                                        children approved by 
                                        application by the 
                                        local educational 
                                        agency as eligible for 
                                        free or reduced price 
                                        meals for the school 
                                        year, as of October 1 
                                        of the school year, 
                                        and--
                                                    (AA) the 
                                                nonresponse 
                                                rate for the 
                                                preceding 
                                                school year is 
                                                at least 10 
                                                percent below 
                                                the nonresponse 
                                                rate for the 
                                                second 
                                                preceding 
                                                school year; or
                                                    (BB) in the 
                                                case of the 
                                                school year 
                                                beginning July 
                                                2005, the local 
                                                educational 
                                                agency attempts 
                                                to verify all 
                                                approved 
                                                household 
                                                applications 
                                                selected for 
                                                verification 
                                                through use of 
                                                public agency 
                                                records from at 
                                                least 2 of the 
                                                programs or 
                                                sources of 
                                                information 
                                                described in 
                                                subparagraph 
                                                (F)(i).
                            (v) Additional selected 
                        applications.--A sample for a local 
                        educational agency for a school year 
                        under clauses (iii) and (iv)(III)(AA) 
                        shall include the number of additional 
                        randomly selected approved household 
                        applications that are required to 
                        comply with the sample size 
                        requirements in those clauses.
                    (E) Preliminary review.--
                            (i) Review for accuracy.--
                                    (I) In general.--Prior to 
                                conducting any other 
                                verification activity for 
                                approved household applications 
                                selected for verification, the 
                                local educational agency shall 
                                ensure that the initial 
                                eligibility determination for 
                                each approved household 
                                application is reviewed for 
                                accuracy by an individual other 
                                than the individual making the 
                                initial eligibility 
                                determination, unless otherwise 
                                determined by the Secretary.
                                    (II) Waiver.--The 
                                requirements of subclause (I) 
                                shall be waived for a local 
                                educational agency if the local 
                                educational agency is using a 
                                technology-based solution that 
                                demonstrates a high level of 
                                accuracy, to the satisfaction 
                                of the Secretary, in processing 
                                an initial eligibility 
                                determination in accordance 
                                with the income eligibility 
                                guidelines of the school lunch 
                                program.
                            (ii) Correct eligibility 
                        determination.--If the review indicates 
                        that the initial eligibility 
                        determination is correct, the local 
                        educational agency shall verify the 
                        approved household application.
                            (iii) Incorrect eligibility 
                        determination.--If the review indicates 
                        that the initial eligibility 
                        determination is incorrect, the local 
                        educational agency shall (as determined 
                        by the Secretary)--
                                    (I) correct the eligibility 
                                status of the household;
                                    (II) notify the household 
                                of the change;
                                    (III) in any case in which 
                                the review indicates that the 
                                household is not eligible for 
                                free or reduced-price meals, 
                                notify the household of the 
                                reason for the ineligibility 
                                and that the household may 
                                reapply with income 
                                documentation for free or 
                                reduced-price meals; and
                                    (IV) in any case in which 
                                the review indicates that the 
                                household is eligible for free 
                                or reduced-price meals, verify 
                                the approved household 
                                application.
                    (F) Direct verification.--
                            (i) In general.--Subject to clauses 
                        (ii) and (iii), to verify eligibility 
                        for free or reduced price meals for 
                        approved household applications 
                        selected for verification, the local 
                        educational agency may (in accordance 
                        with criteria established by the 
                        Secretary) first obtain and use income 
                        and program participation information 
                        from a public agency administering--
                                    (I) the supplemental 
                                nutrition assistance program 
                                established under the Food and 
                                Nutrition Act of 2008 (7 U.S.C. 
                                2011 et seq.);
                                    (II) the food distribution 
                                program on Indian reservations 
                                established under section 4(b) 
                                of the Food and Nutrition Act 
                                of 2008 (7 U.S.C. 2013(b));
                                    (III) the temporary 
                                assistance for needy families 
                                program funded under part A of 
                                title IV of the Social Security 
                                Act (42 U.S.C. 601 et seq.);
                                    (IV) the State medicaid 
                                program under title XIX of the 
                                Social Security Act (42 U.S.C. 
                                1396 et seq.); or
                                    (V) a similar income-tested 
                                program or other source of 
                                information, as determined by 
                                the Secretary.
                            (ii) Free meals.--Public agency 
                        records that may be obtained and used 
                        under clause (i) to verify eligibility 
                        for free meals for approved household 
                        applications selected for verification 
                        shall include the most recent available 
                        information (other than information 
                        reflecting program participation or 
                        income before the 180-day period ending 
                        on the date of application for free 
                        meals) that is relied on to 
                        administer--
                                    (I) a program or source of 
                                information described in clause 
                                (i) (other than clause 
                                (i)(IV)); or
                                    (II) the State plan for 
                                medical assistance under title 
                                XIX of the Social Security Act 
                                (42 U.S.C. 1396 et seq.) in--
                                            (aa) a State in 
                                        which the income 
                                        eligibility limit 
                                        applied under section 
                                        1902(l)(2)(C) of that 
                                        Act (42 U.S.C. 
                                        1396a(l)(2)(C)) is not 
                                        more than 133 percent 
                                        of the official poverty 
                                        line described in 
                                        section 1902(l)(2)(A) 
                                        of that Act (42 U.S.C. 
                                        1396a(l)(2)(A)); or
                                            (bb) a State that 
                                        otherwise identifies 
                                        households that have 
                                        income that is not more 
                                        than 133 percent of the 
                                        official poverty line 
                                        described in section 
                                        1902(l)(2)(A) of that 
                                        Act (42 U.S.C. 
                                        1396a(l)(2)(A)).
                            (iii) Reduced price meals.--Public 
                        agency records that may be obtained and 
                        used under clause (i) to verify 
                        eligibility for reduced price meals for 
                        approved household applications 
                        selected for verification shall include 
                        the most recent available information 
                        (other than information reflecting 
                        program participation or income before 
                        the 180-day period ending on the date 
                        of application for reduced price meals) 
                        that is relied on to administer--
                                    (I) a program or source of 
                                information described in clause 
                                (i) (other than clause 
                                (i)(IV)); or
                                    (II) the State plan for 
                                medical assistance under title 
                                XIX of the Social Security Act 
                                (42 U.S.C. 1396 et seq.) in--
                                            (aa) a State in 
                                        which the income 
                                        eligibility limit 
                                        applied under section 
                                        1902(l)(2)(C) of that 
                                        Act (42 U.S.C. 
                                        1396a(l)(2)(C)) is not 
                                        more than 185 percent 
                                        of the official poverty 
                                        line described in 
                                        section 1902(l)(2)(A) 
                                        of that Act (42 U.S.C. 
                                        1396a(l)(2)(A)); or
                                            (bb) a State that 
                                        otherwise identifies 
                                        households that have 
                                        income that is not more 
                                        than 185 percent of the 
                                        official poverty line 
                                        described in section 
                                        1902(l)(2)(A) of that 
                                        Act (42 U.S.C. 
                                        1396a(l)(2)(A)).
                            (iv) Evaluation.--Not later than 3 
                        years after the date of enactment of 
                        this subparagraph, the Secretary shall 
                        complete an evaluation of--
                                    (I) the effectiveness of 
                                direct verification carried out 
                                under this subparagraph in 
                                decreasing the portion of the 
                                verification sample that must 
                                be verified under subparagraph 
                                (G) while ensuring that 
                                adequate verification 
                                information is obtained; and
                                    (II) the feasibility of 
                                direct verification by State 
                                agencies and local educational 
                                agencies.
                            (v) Expanded use of direct 
                        verification.--If the Secretary 
                        determines that direct verification 
                        significantly decreases the portion of 
                        the verification sample that must be 
                        verified under subparagraph (G), while 
                        ensuring that adequate verification 
                        information is obtained, and can be 
                        conducted by most State agencies and 
                        local educational agencies, the 
                        Secretary may require a State agency or 
                        local educational agency to implement 
                        direct verification through 1 or more 
                        of the programs described in clause 
                        (i), as determined by the Secretary, 
                        unless the State agency or local 
                        educational agency demonstrates (under 
                        criteria established by the Secretary) 
                        that the State agency or local 
                        educational agency lacks the capacity 
                        to conduct, or is unable to implement, 
                        direct verification.
                    (G) Household verification.--
                            (i) In general.--If an approved 
                        household application is not verified 
                        through the use of public agency 
                        records, a local educational agency 
                        shall provide to the household written 
                        notice that--
                                    (I) the approved household 
                                application has been selected 
                                for verification; and
                                    (II) the household is 
                                required to submit verification 
                                information to confirm 
                                eligibility for free or reduced 
                                price meals.
                            (ii) Phone number.--The written 
                        notice in clause (i) shall include a 
                        toll-free phone number that parents and 
                        legal guardians in households selected 
                        for verification can call for 
                        assistance with the verification 
                        process.
                            (iii) Followup activities.--If a 
                        household does not respond to a 
                        verification request, a local 
                        educational agency shall make at least 
                        1 attempt to obtain the necessary 
                        verification from the household in 
                        accordance with guidelines and 
                        regulations promulgated by the 
                        Secretary.
                            (iv) Contract authority for school 
                        food authorities.--A local educational 
                        agency may contract (under standards 
                        established by the Secretary) with a 
                        third party to assist the local 
                        educational agency in carrying out 
                        clause (iii).
                    (H) Verification deadline.--
                            (i) General deadline.--
                                    (I) In general.--Subject to 
                                subclause (II), not later than 
                                November 15 of each school 
                                year, a local educational 
                                agency shall complete the 
                                verification activities 
                                required for the school year 
                                (including followup 
                                activities).
                                    (II) Extension.--Under 
                                criteria established by the 
                                Secretary, a State may extend 
                                the deadline established under 
                                subclause (I) for a school year 
                                for a local educational agency 
                                to December 15 of the school 
                                year.
                            (ii) Eligibility changes.--Based on 
                        the verification activities, the local 
                        educational agency shall make 
                        appropriate modifications to the 
                        eligibility determinations made for 
                        household applications in accordance 
                        with criteria established by the 
                        Secretary.
                    (I) Local conditions.--In the case of a 
                natural disaster, civil disorder, strike, or 
                other local condition (as determined by the 
                Secretary), the Secretary may substitute 
                alternatives for--
                            (i) the sample size and sample 
                        selection criteria established under 
                        subparagraph (D); and
                            (ii) the verification deadline 
                        established under subparagraph (H).
                    (J) Individual review.--In accordance with 
                criteria established by the Secretary, the 
                local educational agency may, on individual 
                review--
                            (i) decline to verify no more than 
                        5 percent of approved household 
                        applications selected under 
                        subparagraph (D); and
                            (ii) replace the approved household 
                        applications with other approved 
                        household applications to be verified.
                    (K) Feasibility study.--
                            (i) In general.--The Secretary 
                        shall conduct a study of the 
                        feasibility of using computer 
                        technology (including data mining) to 
                        reduce--
                                    (I) overcertification 
                                errors in the school lunch 
                                program under this Act;
                                    (II) waste, fraud, and 
                                abuse in connection with this 
                                paragraph; and
                                    (III) errors, waste, fraud, 
                                and abuse in other nutrition 
                                programs, as determined to be 
                                appropriate by the Secretary.
                            (ii) Report.--Not later than 180 
                        days after the date of enactment of 
                        this paragraph, the Secretary shall 
                        submit to the Committee on Education 
                        and the Workforce of the House of 
                        Representatives and the Committee on 
                        Agriculture, Nutrition, and Forestry of 
                        the Senate a report describing--
                                    (I) the results of the 
                                feasibility study conducted 
                                under this subsection;
                                    (II) how a computer system 
                                using technology described in 
                                clause (i) could be 
                                implemented;
                                    (III) a plan for 
                                implementation; and
                                    (IV) proposed legislation, 
                                if necessary, to implement the 
                                system.
            (4) Direct certification for children in 
        supplemental nutrition assistance program households.--
                    (A) In general.--Subject to subparagraph 
                (D), each State agency shall enter into an 
                agreement with the State agency conducting 
                eligibility determinations for the supplemental 
                nutrition assistance program established under 
                the Food and Nutrition Act of 2008 (7 U.S.C. 
                2011 et seq.).
                    (B) Procedures.--Subject to paragraph (6), 
                the agreement shall establish procedures under 
                which a child who is a member of a household 
                receiving assistance under the supplemental 
                nutrition assistance program shall be certified 
                as eligible for free lunches under this Act and 
                free breakfasts under the Child Nutrition Act 
                of 1966 (42 U.S.C. 1771 et seq.), without 
                further application.
                    (C) Certification.--Subject to paragraph 
                (6), under the agreement, the local educational 
                agency conducting eligibility determinations 
                for a school lunch program under this Act and a 
                school breakfast program under the Child 
                Nutrition Act of 1966 (42 U.S.C. 1771 et seq.) 
                shall certify a child who is a member of a 
                household receiving assistance under the 
                supplemental nutrition assistance program as 
                eligible for free lunches under this Act and 
                free breakfasts under the Child Nutrition Act 
                of 1966 (42 U.S.C. 1771 et seq.), without 
                further application.
                    (D) Applicability.--This paragraph applies 
                to--
                            (i) in the case of the school year 
                        beginning July 2006, a school district 
                        that had an enrollment of 25,000 
                        students or more in the preceding 
                        school year;
                            (ii) in the case of the school year 
                        beginning July 2007, a school district 
                        that had an enrollment of 10,000 
                        students or more in the preceding 
                        school year; and
                            (iii) in the case of the school 
                        year beginning July 2008 and each 
                        subsequent school year, each local 
                        educational agency.
                    (E) Performance awards.--
                            (i) In general.--Effective for each 
                        of the school years beginning July 1, 
                        2011, July 1, 2012, and July 1, 2013, 
                        the Secretary shall offer performance 
                        awards to States to encourage the 
                        States to ensure that all children 
                        eligible for direct certification under 
                        this paragraph are certified in 
                        accordance with this paragraph.
                            (ii) Requirements.--For each school 
                        year described in clause (i), the 
                        Secretary shall--
                                    (I) consider State data 
                                from the prior school year, 
                                including estimates contained 
                                in the report required under 
                                section 4301 of the Food, 
                                Conservation, and Energy Act of 
                                2008 (42 U.S.C. 1758a); and
                                    (II) make performance 
                                awards to not more than 15 
                                States that demonstrate, as 
                                determined by the Secretary--
                                            (aa) outstanding 
                                        performance; and
                                            (bb) substantial 
                                        improvement.
                            (iii) Use of funds.--A State agency 
                        that receives a performance award under 
                        clause (i)--
                                    (I) shall treat the funds 
                                as program income; and
                                    (II) may transfer the funds 
                                to school food authorities for 
                                use in carrying out the 
                                program.
                            (iv) Funding.--
                                    (I) In general.--On October 
                                1, 2011, and each subsequent 
                                October 1 through October 1, 
                                2013, out of any funds in the 
                                Treasury not otherwise 
                                appropriated, the Secretary of 
                                the Treasury shall transfer to 
                                the Secretary--
                                            (aa) $2,000,000 to 
                                        carry out clause 
                                        (ii)(II)(aa); and
                                            (bb) $2,000,000 to 
                                        carry out clause 
                                        (ii)(II)(bb).
                                    (II) Receipt and 
                                acceptance.--The Secretary 
                                shall be entitled to receive, 
                                shall accept, and shall use to 
                                carry out this clause the funds 
                                transferred under subclause 
                                (I), without further 
                                appropriation.
                            (v) Payments not subject to 
                        judicial review.--A determination by 
                        the Secretary whether, and in what 
                        amount, to make a performance award 
                        under this subparagraph shall not be 
                        subject to administrative or judicial 
                        review.
                    (F) Continuous improvement plans.--
                            (i) Definition of required 
                        percentage.--In this subparagraph, the 
                        term ``required percentage'' means--
                                    (I) for the school year 
                                beginning July 1, 2011, 80 
                                percent;
                                    (II) for the school year 
                                beginning July 1, 2012, 90 
                                percent; and
                                    (III) for the school year 
                                beginning July 1, 2013, and 
                                each school year thereafter, 95 
                                percent.
                            (ii) Requirements.--Each school 
                        year, the Secretary shall--
                                    (I) identify, using data 
                                from the prior year, including 
                                estimates contained in the 
                                report required under section 
                                4301 of the Food, Conservation, 
                                and Energy Act of 2008 (42 
                                U.S.C. 1758a), States that 
                                directly certify less than the 
                                required percentage of the 
                                total number of children in the 
                                State who are eligible for 
                                direct certification under this 
                                paragraph;
                                    (II) require the States 
                                identified under subclause (I) 
                                to implement a continuous 
                                improvement plan to fully meet 
                                the requirements of this 
                                paragraph, which shall include 
                                a plan to improve direct 
                                certification for the following 
                                school year; and
                                    (III) assist the States 
                                identified under subclause (I) 
                                to develop and implement a 
                                continuous improvement plan in 
                                accordance with subclause (II).
                            (iii) Failure to meet performance 
                        standard.--
                                    (I) In general.--A State 
                                that is required to develop and 
                                implement a continuous 
                                improvement plan under clause 
                                (ii)(II) shall be required to 
                                submit the continuous 
                                improvement plan to the 
                                Secretary, for the approval of 
                                the Secretary.
                                    (II) Requirements.--At a 
                                minimum, a continuous 
                                improvement plan under 
                                subclause (I) shall include--
                                            (aa) specific 
                                        measures that the State 
                                        will use to identify 
                                        more children who are 
                                        eligible for direct 
                                        certification, 
                                        including improvements 
                                        or modifications to 
                                        technology, information 
                                        systems, or databases;
                                            (bb) a timeline for 
                                        the State to implement 
                                        those measures; and
                                            (cc) goals for the 
                                        State to improve direct 
                                        certification results.
                    (G) Without further application.--
                            (i) In general.--In this paragraph, 
                        the term ``without further 
                        application'' means that no action is 
                        required by the household of the child.
                            (ii) Clarification.--A requirement 
                        that a household return a letter 
                        notifying the household of eligibility 
                        for direct certification or eligibility 
                        for free school meals does not meet the 
                        requirements of clause (i).
            (5) Discretionary certification.--Subject to 
        paragraph (6), any local educational agency may certify 
        any child as eligible for free lunches or breakfasts, 
        without further application, by directly communicating 
        with the appropriate State or local agency to obtain 
        documentation of the status of the child as--
                    (A) a member of a family that is receiving 
                assistance under the temporary assistance for 
                needy families program funded under part A of 
                title IV of the Social Security Act (42 U.S.C. 
                601 et seq.) that the Secretary determines 
                complies with standards established by the 
                Secretary that ensure that the standards under 
                the State program are comparable to or more 
                restrictive than those in effect on June 1, 
                1995;
                    (B) a homeless child or youth (defined as 1 
                of the individuals described in section 725(2) 
                of the McKinney-Vento Homeless Assistance Act 
                (42 U.S.C. 11434a(2));
                    (C) served by the runaway and homeless 
                youth grant program established under the 
                Runaway and Homeless Youth Act (42 U.S.C. 5701 
                et seq.);
                    (D) a migratory child (as defined in 
                section 1309 of the Elementary and Secondary 
                Education Act of 1965 (20 U.S.C. 6399)); or
                    (E)(i) a foster child whose care and 
                placement is the responsibility of an agency 
                that administers a State plan under part B or E 
                of title IV of the Social Security Act (42 
                U.S.C. 621 et seq.); or
                    (ii) a foster child who a court has placed 
                with a caretaker household.
            (6) Use or disclosure of information.--
                    (A) In general.--The use or disclosure of 
                any information obtained from an application 
                for free or reduced price meals, or from a 
                State or local agency referred to in paragraph 
                (3)(F), (4), or (5), shall be limited to--
                            (i) a person directly connected 
                        with the administration or enforcement 
                        of this Act or the Child Nutrition Act 
                        of 1966 (42 U.S.C. 1771 et seq.) 
                        (including a regulation promulgated 
                        under either Act);
                            (ii) a person directly connected 
                        with the administration or enforcement 
                        of--
                                    (I) a Federal education 
                                program;
                                    (II) a State health or 
                                education program administered 
                                by the State or local 
                                educational agency (other than 
                                a program carried out under 
                                title XIX or XXI of the Social 
                                Security Act (42 U.S.C. 1396 et 
                                seq.; 42 U.S.C. 1397aa et 
                                seq.)); or
                                    (III) a Federal, State, or 
                                local means-tested nutrition 
                                program with eligibility 
                                standards comparable to the 
                                school lunch program under this 
                                Act;
                            (iii)(I) the Comptroller General of 
                        the United States for audit and 
                        examination authorized by any other 
                        provision of law; and
                            (II) notwithstanding any other 
                        provision of law, a Federal, State, or 
                        local law enforcement official for the 
                        purpose of investigating an alleged 
                        violation of any program covered by 
                        this paragraph or paragraph (3)(F), 
                        (4), or (5);
                            (iv) a person directly connected 
                        with the administration of the State 
                        medicaid program under title XIX of the 
                        Social Security Act (42 U.S.C. 1396 et 
                        seq.) or the State children's health 
                        insurance program under title XXI of 
                        that Act (42 U.S.C. 1397aa et seq.) 
                        solely for the purposes of--
                                    (I) identifying children 
                                eligible for benefits under, 
                                and enrolling children in, 
                                those programs, except that 
                                this subclause shall apply only 
                                to the extent that the State 
                                and the local educational 
                                agency or school food authority 
                                so elect; and
                                    (II) verifying the 
                                eligibility of children for 
                                programs under this Act or the 
                                Child Nutrition Act of 1966 (42 
                                U.S.C. 1771 et seq.); and
                            (v) a third party contractor 
                        described in paragraph (3)(G)(iv).
                    (B) Limitation on information provided.--
                Information provided under clause (ii) or (v) 
                of subparagraph (A) shall be limited to the 
                income eligibility status of the child for whom 
                application for free or reduced price meal 
                benefits is made or for whom eligibility 
                information is provided under paragraph (3)(F), 
                (4), or (5), unless the consent of the parent 
                or guardian of the child for whom application 
                for benefits was made is obtained.
                    (C) Criminal penalty.--A person described 
                in subparagraph (A) who publishes, divulges, 
                discloses, or makes known in any manner, or to 
                any extent not authorized by Federal law 
                (including a regulation), any information 
                obtained under this subsection shall be fined 
                not more than $1,000 or imprisoned not more 
                than 1 year, or both.
                    (D) Requirements for waiver of 
                confidentiality.--A State that elects to 
                exercise the option described in subparagraph 
                (A)(iv)(I) shall ensure that any local 
                educational agency or school food authority 
                acting in accordance with that option--
                            (i) has a written agreement with 1 
                        or more State or local agencies 
                        administering health programs for 
                        children under titles XIX and XXI of 
                        the Social Security Act (42 U.S.C. 1396 
                        et seq. and 1397aa et seq.) that 
                        requires the health agencies to use the 
                        information obtained under subparagraph 
                        (A) to seek to enroll children in those 
                        health programs; and
                            (ii)(I) notifies each household, 
                        the information of which shall be 
                        disclosed under subparagraph (A), that 
                        the information disclosed will be used 
                        only to enroll children in health 
                        programs referred to in subparagraph 
                        (A)(iv); and
                            (II) provides each parent or 
                        guardian of a child in the household 
                        with an opportunity to elect not to 
                        have the information disclosed.
                    (E) Use of disclosed information.--A person 
                to which information is disclosed under 
                subparagraph (A)(iv)(I) shall use or disclose 
                the information only as necessary for the 
                purpose of enrolling children in health 
                programs referred to in subparagraph (A)(iv).
            (7) Free and reduced price policy statement.--
                    (A) In general.--After the initial 
                submission, a local educational agency shall 
                not be required to submit a free and reduced 
                price policy statement to a State educational 
                agency under this Act unless there is a 
                substantive change in the free and reduced 
                price policy of the local educational agency.
                    (B) Routine change.--A routine change in 
                the policy of a local educational agency (such 
                as an annual adjustment of the income 
                eligibility guidelines for free and reduced 
                price meals) shall not be sufficient cause for 
                requiring the local educational agency to 
                submit a policy statement.
            (8) Communications.--
                    (A) In general.--Any communication with a 
                household under this subsection or subsection 
                (d) shall be in an understandable and uniform 
                format and, to the maximum extent practicable, 
                in a language that parents and legal guardians 
                can understand.
                    (B) Electronic availability.--In addition 
                to the distribution of applications and 
                descriptive material in paper form as provided 
                for in this paragraph, the applications and 
                material may be made available electronically 
                via the Internet.
            (9) Eligibility for free and reduced price 
        lunches.--
                    (A) Free lunches.--Any child who is a 
                member of a household whose income, at the time 
                the application is submitted, is at an annual 
                rate which does not exceed the applicable 
                family size income level of the income 
                eligibility guidelines for free lunches, as 
                determined under paragraph (1), shall be served 
                a free lunch.
                    (B) Reduced price lunches.--
                            (i) In general.--Any child who is a 
                        member of a household whose income, at 
                        the time the application is submitted, 
                        is at an annual rate greater than the 
                        applicable family size income level of 
                        the income eligibility guidelines for 
                        free lunches, as determined under 
                        paragraph (1), but less than or equal 
                        to the applicable family size income 
                        level of the income eligibility 
                        guidelines for reduced price lunches, 
                        as determined under paragraph (1), 
                        shall be served a reduced price lunch.
                            (ii) Maximum price.--The price 
                        charged for a reduced price lunch shall 
                        not exceed 40 cents.
                    (C) Duration.--Except as otherwise 
                specified in paragraph (3)(E), (3)(H)(ii), and 
                section 11(a), eligibility for free or reduced 
                price meals for any school year shall remain in 
                effect--
                            (i) beginning on the date of 
                        eligibility approval for the current 
                        school year; and
                            (ii) ending on a date during the 
                        subsequent school year determined by 
                        the Secretary.
    (10) No physical segregation of or other discrimination 
against any child eligible for a free lunch or a reduced price 
lunch under this subsection shall be made by the school nor 
shall there be any overt identification of any child by special 
tokens or tickets, announced or published list of names, or by 
other means.
    (11) Any child who has a parent or guardian who (A) is 
responsible for the principal support of such child and (B) is 
unemployed shall be served a free or reduced price lunch, 
respectively, during any period (i) in which such child's 
parent or guardian continues to be unemployed and (ii) the 
income of the child's parents or guardians during such period 
of unemployment falls within the income eligibility criteria 
for free lunches or reduced price lunches, respectively, based 
on the current rate of income of such parents or guardians. 
Local educational agencies shall publicly announce that such 
children are eligible for free or reduced price lunch, and 
shall make determinations with respect to the status of any 
parent or guardian of any child under clauses (A) and (B) of 
the preceding sentence on the basis of a statement executed in 
such form as the Secretary may prescribe by such parent or 
guardian. No physical segregation of, or other discrimination 
against, any child eligible for a free or reduced price lunch 
under this paragraph shall be made by the school nor shall 
there be any overt identification of any such child by special 
tokens or tickets, announced or published lists of names, or by 
any other means.
    (12)(A) A child shall be considered automatically eligible 
for a free lunch and breakfast under this Act and the Child 
Nutrition Act of 1966 (42 U.S.C. 1771 et seq.), respectively, 
without further application or eligibility determination, if 
the child is--
            (i) a member of a household receiving assistance 
        under the supplemental nutrition assistance program 
        authorized under the Food and Nutrition Act of 2008 (7 
        U.S.C. 2011 et seq.);
            (ii) a member of a family (under the State program 
        funded under part A of title IV of the Social Security 
        Act (42 U.S.C. 601 et seq.)) that the Secretary 
        determines complies with standards established by the 
        Secretary that ensure that the standards under the 
        State program are comparable to or more restrictive 
        than those in effect on June 1, 1995;
            (iii) enrolled as a participant in a Head Start 
        program authorized under the Head Start Act (42 U.S.C. 
        9831 et seq.), on the basis of a determination that the 
        child meets the eligibility criteria prescribed under 
        section 645(a)(1)(B) of the Head Start Act (42 U.S.C. 
        9840(a)(1)(B));
                    (iv) a homeless child or youth (defined as 
                1 of the individuals described in section 
                725(2) of the McKinney-Vento Homeless 
                Assistance Act (42 U.S.C. 11434a(2)));
                    (v) served by the runaway and homeless 
                youth grant program established under the 
                Runaway and Homeless Youth Act (42 U.S.C. 5701 
                et seq.);
                    (vi) a migratory child (as defined in 
                section 1309 of the Elementary and Secondary 
                Education Act of 1965 (20 U.S.C. 6399)); or
                    (vii)(I) a foster child whose care and 
                placement is the responsibility of an agency 
                that administers a State plan under part B or E 
                of title IV of the Social Security Act (42 
                U.S.C. 621 et seq.); or
                            (II) a foster child who a court has 
                        placed with a caretaker household.
    (B) Proof of receipt of supplemental nutrition assistance 
program benefits or assistance under the State program funded 
under part A of title IV of the Social Security Act (42 U.S.C. 
601 et seq.) that the Secretary determines complies with 
standards established by the Secretary that ensure that the 
standards under the State program are comparable to or more 
restrictive than those in effect on June 1, 1995, or of 
enrollment or participation in a Head Start program on the 
basis described in subparagraph (A)(iii), shall be sufficient 
to satisfy any verification requirement imposed under this 
subsection.
            (13) Exclusion of certain military housing 
        allowances.--The amount of a basic allowance provided 
        under section 403 of title 37, United States Code, on 
        behalf of a member of a uniformed service for housing 
        that is acquired or constructed under subchapter IV of 
        chapter 169 of title 10, United States Code, or any 
        related provision of law, shall not be considered to be 
        income for the purpose of determining the eligibility 
        of a child who is a member of the household of the 
        member of a uniformed service for free or reduced price 
        lunches under this Act.
            (14) Combat pay.--
                    (A) Definition of combat pay.--In this 
                paragraph, the term ``combat pay'' means any 
                additional payment under chapter 5 of title 37, 
                United States Code, or otherwise designated by 
                the Secretary to be appropriate for exclusion 
                under this paragraph, that is received by or 
                from a member of the United States Armed Forces 
                deployed to a designated combat zone, if the 
                additional pay--
                            (i) is the result of deployment to 
                        or service in a combat zone; and
                            (ii) was not received immediately 
                        prior to serving in a combat zone.
                    (B) Exclusion.--Combat pay shall not be 
                considered to be income for the purpose of 
                determining the eligibility for free or reduced 
                price meals of a child who is a member of the 
                household of a member of the United States 
                Armed Forces.
            (15) Direct certification for children receiving 
        medicaid benefits.--
                    (A) Definitions.--In this paragraph:
                            (i) Eligible child.--The term 
                        ``eligible child'' means a child--
                                    (I)(aa) who is eligible for 
                                and receiving medical 
                                assistance under the Medicaid 
                                program; and
                                    (bb) who is a member of a 
                                family with an income as 
                                measured by the Medicaid 
                                program before the application 
                                of any expense, block, or other 
                                income disregard, that does not 
                                exceed 133 percent of the 
                                poverty line (as defined in 
                                section 673(2) of the Community 
                                Services Block Grant Act (42 
                                U.S.C. 9902(2), including any 
                                revision required by such 
                                section)) applicable to a 
                                family of the size used for 
                                purposes of determining 
                                eligibility for the Medicaid 
                                program; or
                                    (II) who is a member of a 
                                household (as that term is 
                                defined in section 245.2 of 
                                title 7, Code of Federal 
                                Regulations (or successor 
                                regulations) with a child 
                                described in subclause (I).
                            (ii) Medicaid program.--The term 
                        ``Medicaid program'' means the program 
                        of medical assistance established under 
                        title XIX of the Social Security Act 
                        (42 U.S.C. 1396 et seq.).
                    (B) Demonstration project.--
                            (i) In general.--The Secretary, 
                        acting through the Administrator of the 
                        Food and Nutrition Service and in 
                        cooperation with selected State 
                        agencies, shall conduct a demonstration 
                        project in selected local educational 
                        agencies to determine whether direct 
                        certification of eligible children is 
                        an effective method of certifying 
                        children for free lunches and 
                        breakfasts under section 9(b)(1)(A) of 
                        this Act and section 4(e)(1)(A) of the 
                        Child Nutrition Act of 1966 (42 U.S.C. 
                        1773(e)(1)(A)).
                            (ii) Scope of project.--The 
                        Secretary shall carry out the 
                        demonstration project under this 
                        subparagraph--
                                    (I) for the school year 
                                beginning July 1, 2012, in 
                                selected local educational 
                                agencies that collectively 
                                serve 2.5 percent of students 
                                certified for free and reduced 
                                price meals nationwide, based 
                                on the most recent available 
                                data;
                                    (II) for the school year 
                                beginning July 1, 2013, in 
                                selected local educational 
                                agencies that collectively 
                                serve 5 percent of students 
                                certified for free and reduced 
                                price meals nationwide, based 
                                on the most recent available 
                                data; and
                                    (III) for the school year 
                                beginning July 1, 2014, and 
                                each subsequent school year, in 
                                selected local educational 
                                agencies that collectively 
                                serve 10 percent of students 
                                certified for free and reduced 
                                price meals nationwide, based 
                                on the most recent available 
                                data.
                            (iii) Purposes of the project.--At 
                        a minimum, the purposes of the 
                        demonstration project shall be--
                                    (I) to determine the 
                                potential of direct 
                                certification with the Medicaid 
                                program to reach children who 
                                are eligible for free meals but 
                                not certified to receive the 
                                meals;
                                    (II) to determine the 
                                potential of direct 
                                certification with the Medicaid 
                                program to directly certify 
                                children who are enrolled for 
                                free meals based on a household 
                                application; and
                                    (III) to provide an 
                                estimate of the effect on 
                                Federal costs and on 
                                participation in the school 
                                lunch program under this Act 
                                and the school breakfast 
                                program established by section 
                                4 of the Child Nutrition Act of 
                                1966 (42 U.S.C. 1773) of direct 
                                certification with the Medicaid 
                                program.
                            (iv) Cost estimate.--For each of 2 
                        school years of the demonstration 
                        project, the Secretary shall estimate 
                        the cost of the direct certification of 
                        eligible children for free school meals 
                        through data derived from--
                                    (I) the school meal 
                                programs authorized under this 
                                Act and the Child Nutrition Act 
                                of 1966 (42 U.S.C. 1771 et 
                                seq.);
                                    (II) the Medicaid program; 
                                and
                                    (III) interviews with a 
                                statistically representative 
                                sample of households.
                    (C) Agreement.--
                            (i) In general.--Not later than 
                        July 1 of the first school year during 
                        which a State agency will participate 
                        in the demonstration project, the State 
                        agency shall enter into an agreement 
                        with the 1 or more State agencies 
                        conducting eligibility determinations 
                        for the Medicaid program.
                            (ii) Without further application.--
                        Subject to paragraph (6), the agreement 
                        described in subparagraph (D) shall 
                        establish procedures under which an 
                        eligible child shall be certified for 
                        free lunches under this Act and free 
                        breakfasts under section 4 of the Child 
                        Nutrition Act of 1966 (42 U.S.C. 1773), 
                        without further application (as defined 
                        in paragraph (4)(G)).
                    (D) Certification.--For the school year 
                beginning on July 1, 2012, and each subsequent 
                school year, subject to paragraph (6), the 
                local educational agencies participating in the 
                demonstration project shall certify an eligible 
                child as eligible for free lunches under this 
                Act and free breakfasts under the Child 
                Nutrition Act of 1966 (42 U.S.C. 1771 et seq.), 
                without further application (as defined in 
                paragraph (4)(G)).
                    (E) Site selection.--
                            (i) In general.--To be eligible to 
                        participate in the demonstration 
                        project under this subsection, a State 
                        agency shall submit to the Secretary an 
                        application at such time, in such 
                        manner, and containing such information 
                        as the Secretary may require.
                            (ii) Considerations.--In selecting 
                        States and local educational agencies 
                        for participation in the demonstration 
                        project, the Secretary may take into 
                        consideration such factors as the 
                        Secretary considers to be appropriate, 
                        which may include--
                                    (I) the rate of direct 
                                certification;
                                    (II) the share of 
                                individuals who are eligible 
                                for benefits under the 
                                supplemental nutrition 
                                assistance program established 
                                under the Food and Nutrition 
                                Act of 2008 (7 U.S.C. 2011 et 
                                seq.) who participate in the 
                                program, as determined by the 
                                Secretary;
                                    (III) the income 
                                eligibility limit for the 
                                Medicaid program;
                                    (IV) the feasibility of 
                                matching data between local 
                                educational agencies and the 
                                Medicaid program;
                                    (V) the socioeconomic 
                                profile of the State or local 
                                educational agencies; and
                                    (VI) the willingness of the 
                                State and local educational 
                                agencies to comply with the 
                                requirements of the 
                                demonstration project.
                    (F) Access to data.--For purposes of 
                conducting the demonstration project under this 
                paragraph, the Secretary shall have access to--
                            (i) educational and other records 
                        of State and local educational and 
                        other agencies and institutions 
                        receiving funding or providing benefits 
                        for 1 or more programs authorized under 
                        this Act or the Child Nutrition Act of 
                        1966 (42 U.S.C. 1771 et seq.); and
                            (ii) income and program 
                        participation information from public 
                        agencies administering the Medicaid 
                        program.
                    (G) Report to congress.--
                            (i) In general.--Not later than 
                        October 1, 2014, the Secretary shall 
                        submit to the Committee on Education 
                        and Labor of the House of 
                        Representatives and the Committee on 
                        Agriculture, Nutrition, and Forestry of 
                        the Senate, an interim report that 
                        describes the results of the 
                        demonstration project required under 
                        this paragraph.
                            (ii) Final report.--Not later than 
                        October 1, 2015, the Secretary shall 
                        submit a final report to the committees 
                        described in clause (i).
                    (H) Funding.--
                            (i) In general.--On October 1, 
                        2010, out of any funds in the Treasury 
                        not otherwise appropriated, the 
                        Secretary of the Treasury shall 
                        transfer to the Secretary to carry out 
                        subparagraph (G) $5,000,000, to remain 
                        available until expended.
                            (ii) Receipt and acceptance.--The 
                        Secretary shall be entitled to receive, 
                        shall accept, and shall use to carry 
                        out subparagraph (G) the funds 
                        transferred under clause (i), without 
                        further appropriation.
    (c) School lunch programs under this Act shall be operated 
on a nonprofit basis. Commodities purchased under the authority 
of section 32 of the Act of August 24, 1935, may be donated by 
the Secretary to schools, in accordance with the needs as 
determined by local school authorities, for utilization in the 
school lunch program under this Act as well as to other schools 
carrying out nonprofit school lunch programs and institutions 
authorized to receive such commodities. The requirements of 
this section relating to the service of meals without cost or 
at a reduced cost shall apply to the lunch program of any 
school utilizing commodities donated under any provision of 
law.
    (d)(1) The Secretary shall require as a condition of 
eligibility for receipt of free or reduced price lunches that 
the member of the household who executes the application 
furnish the last 4 digits of the social security account number 
of the parent or guardian who is the primary wage earner 
responsible for the care of the child for whom the application 
is made, or that of another appropriate adult member of the 
child's household, as determined by the Secretary.
    (2) No member of a household may be provided a free or 
reduced price lunch under this Act unless--
            (A) appropriate documentation relating to the 
        income of such household (as prescribed by the 
        Secretary) has been provided to the appropriate local 
        educational agency so that the local educational agency 
        may calculate the total income of such household;
            (B) documentation showing that the household is 
        participating in the supplemental nutrition assistance 
        program under the Food and Nutrition Act of 2008 has 
        been provided to the appropriate local educational 
        agency;
            (C) documentation has been provided to the 
        appropriate local educational agency showing that the 
        family is receiving assistance under the State program 
        funded under part A of title IV of the Social Security 
        Act that the Secretary determines complies with 
        standards established by the Secretary that ensure that 
        the standards under the State program are comparable to 
        or more restrictive than those in effect on June 1, 
        1995;
            (D) documentation has been provided to the 
        appropriate local educational agency showing that the 
        child meets the criteria specified in clauses (iv) or 
        (v) of subsection (b)(12)(A);
            (E) documentation has been provided to the 
        appropriate local educational agency showing the status 
        of the child as a migratory child (as defined in 
        section 1309 of the Elementary and Secondary Education 
        Act of 1965 (20 U.S.C. 6399));
            (F)(i) documentation has been provided to the 
        appropriate local educational agency showing the status 
        of the child as a foster child whose care and placement 
        is the responsibility of an agency that administers a 
        State plan under part B or E of title IV of the Social 
        Security Act (42 U.S.C. 621 et seq.); or
                    (ii) documentation has been provided to the 
                appropriate local educational agency showing 
                the status of the child as a foster child who a 
                court has placed with a caretaker household; or
            (G) documentation has been provided to the 
        appropriate local educational agency showing the status 
        of the child as an eligible child (as defined in 
        subsection (b)(15)(A)).
    (e) A school or school food authority participating in a 
program under this Act may not contract with a food service 
company to provide a la carte food service unless the company 
agrees to offer free, reduced price, and full-price 
reimbursable meals to all eligible children.
    (f) Nutritional Requirements.--
            (1) In general.--Schools that are participating in 
        the school lunch program or school breakfast program 
        shall serve lunches and breakfasts that--
                    (A) are consistent with the goals of the 
                most recent Dietary Guidelines for Americans 
                published under section 301 of the National 
                Nutrition Monitoring and Related Research Act 
                of 1990 (7 U.S.C. 5341); and
                    (B) consider the nutrient needs of children 
                who may be at risk for inadequate food intake 
                and food insecurity.
    (2) To assist schools in meeting the requirements of this 
subsection, the Secretary--
            (A) shall--
                    (i) develop, and provide to schools, 
                standardized recipes, menu cycles, and food 
                product specification and preparation 
                techniques; and
                    (ii) provide to schools information 
                regarding nutrient standard menu planning, 
                assisted nutrient standard menu planning, and 
                food-based menu systems; and
            (B) may provide to schools information regarding 
        other approaches, as determined by the Secretary.
    (3) Use of any reasonable approach.--
            (A) In general.--A school food service authority 
        may use any reasonable approach, within guidelines 
        established by the Secretary in a timely manner, to 
        meet the requirements of this subsection, including--
                    (i) using the school nutrition meal pattern 
                in effect for the 1994-1995 school year; and
                    (ii) using any of the approaches described 
                in paragraph (3).
            (B) Nutrient analysis.--The Secretary may not 
        require a school to conduct or use a nutrient analysis 
        to meet the requirements of this subsection.
            (4) Waiver of requirement for weighted averages for 
        nutrient analysis.--During the period ending on 
        September 30, 2010, the Secretary shall not require the 
        use of weighted averages for nutrient analysis of menu 
        items and foods offered or served as part of a meal 
        offered or served under the school lunch program under 
        this Act or the school breakfast program under section 
        4 of the Child Nutrition Act of 1966 (42 U.S.C. 1773).
    (g) Not later than 1 year after the date of enactment of 
this subsection, the Secretary shall provide a notification to 
Congress that justifies the need for production records 
required under section 210.10(b) of title 7, Code of Federal 
Regulations, and describes how the Secretary has reduced 
paperwork relating to the school lunch and school breakfast 
programs.
    (h) Food Safety.--
            (1) In general.--A school participating in the 
        school lunch program under this Act or the school 
        breakfast program under section 4 of the Child 
        Nutrition Act of 1966 (42 U.S.C. 1773) shall--
                    (A) at least twice during each school year, 
                obtain a food safety inspection conducted by a 
                State or local governmental agency responsible 
                for food safety inspections;
                    (B) post in a publicly visible location a 
                report on the most recent inspection conducted 
                under subparagraph (A); and
                    (C) on request, provide a copy of the 
                report to a member of the public.
            (2) State and local government inspections.--
        Nothing in paragraph (1) prevents any State or local 
        government from adopting or enforcing any requirement 
        for more frequent food safety inspections of schools.
            (3) Audits and reports by states.--For fiscal year 
        [2018] 2019, each State shall annually--
                    (A) audit food safety inspections of 
                schools conducted under paragraphs (1) and (2); 
                and
                    (B) submit to the Secretary a report of the 
                results of the audit.
            (4) Audit by the secretary.--For fiscal year [2018] 
        2019, the Secretary shall annually audit State reports 
        of food safety inspections of schools submitted under 
        paragraph (3).
            (5) School food safety program.--
                    (A) In general.--Each school food authority 
                shall implement a school food safety program, 
                in the preparation and service of each meal 
                served to children, that complies with any 
                hazard analysis and critical control point 
                system established by the Secretary.
                    (B) Applicability.--Subparagraph (A) shall 
                apply to any facility or part of a facility in 
                which food is stored, prepared, or served for 
                the purposes of the school nutrition programs 
                under this Act or section 4 of the Child 
                Nutrition Act of 1966 (42 U.S.C. 1773).
    (i) Single Permanent Agreement Between State Agency and 
School Food Authority; Common Claims Form.--
            (1) In general.--If a single State agency 
        administers any combination of the school lunch program 
        under this Act, the school breakfast program under 
        section 4 of the Child Nutrition Act of 1966 (42 U.S.C. 
        1773), the summer food service program for children 
        under section 13 of this Act, or the child and adult 
        care food program under section 17 of this Act, the 
        agency shall--
                    (A) require each school food authority to 
                submit to the State agency a single agreement 
                with respect to the operation by the authority 
                of the programs administered by the State 
                agency; and
                    (B) use a common claims form with respect 
                to meals and supplements served under the 
                programs administered by the State agency.
            (2) Additional requirement.--The agreement 
        described in paragraph (1)(A) shall be a permanent 
        agreement that may be amended as necessary.
    (j) Purchases of Locally Produced Foods.--The Secretary 
shall--
            (1) encourage institutions receiving funds under 
        this Act and the Child Nutrition Act of 1966 (42 U.S.C. 
        1771 et seq.) to purchase unprocessed agricultural 
        products, both locally grown and locally raised, to the 
        maximum extent practicable and appropriate;
            (2) advise institutions participating in a program 
        described in paragraph (1) of the policy described in 
        that paragraph and paragraph (3) and post information 
        concerning the policy on the website maintained by the 
        Secretary; and
            (3) allow institutions receiving funds under this 
        Act and the Child Nutrition Act of 1966 (42 U.S.C. 1771 
        et seq.), including the Department of Defense Fresh 
        Fruit and Vegetable Program, to use a geographic 
        preference for the procurement of unprocessed 
        agricultural products, both locally grown and locally 
        raised.
    (k) Information on the School Nutrition Environment.--
            (1) In general.--The Secretary shall--
                    (A) establish requirements for local 
                educational agencies participating in the 
                school lunch program under this Act and the 
                school breakfast program established by section 
                4 of the Child Nutrition Act of 1966 (42 U.S.C. 
                1773) to report information about the school 
                nutrition environment, for all schools under 
                the jurisdiction of the local educational 
                agencies, to the Secretary and to the public in 
                the State on a periodic basis; and
                    (B) provide training and technical 
                assistance to States and local educational 
                agencies on the assessment and reporting of the 
                school nutrition environment, including the use 
                of any assessment materials developed by the 
                Secretary.
            (2) Requirements.--In establishing the requirements 
        for reporting on the school nutrition environment under 
        paragraph (1), the Secretary shall--
                    (A) include information pertaining to food 
                safety inspections, local wellness policies, 
                meal program participation, the nutritional 
                quality of program meals, and other information 
                as determined by the Secretary; and
                    (B) ensure that information is made 
                available to the public by local educational 
                agencies in an accessible, easily understood 
                manner in accordance with guidelines 
                established by the Secretary.
            (3) Authorization of appropriations.--There are 
        authorized to be appropriated to carry out this 
        subsection such sums as are necessary for each of 
        fiscal years 2011 through 2015.
    (l) Food Donation Program.--
            (1) In general.--Each school and local educational 
        agency participating in the school lunch program under 
        this Act may donate any food not consumed under such 
        program to eligible local food banks or charitable 
        organizations.
            (2) Guidance.--
                    (A) In general.--Not later than 180 days 
                after the date of the enactment of this 
                subsection, the Secretary shall develop and 
                publish guidance to schools and local 
                educational agencies participating in the 
                school lunch program under this Act to assist 
                such schools and local educational agencies in 
                donating food under this subsection.
                    (B) Updates.--The Secretary shall update 
                such guidance as necessary.
            (3) Liability.--Any school or local educational 
        agency making donations pursuant to this subsection 
        shall be exempt from civil and criminal liability to 
        the extent provided under the Bill Emerson Good 
        Samaritan Food Donation Act (42 U.S.C. 1791).
            (4) Definition.--In this subsection, the term 
        ``eligible local food banks or charitable 
        organizations'' means any food bank or charitable 
        organization which is exempt from tax under section 
        501(c)(3) of the Internal Revenue Code of 1986 (26 
        U.S.C. 501(c)(3)).

           *       *       *       *       *       *       *

SEC. 26. INFORMATION CLEARINGHOUSE.

    (a) In General.--The Secretary shall enter into a contract 
with a nongovernmental organization described in subsection (b) 
to establish and maintain a clearinghouse to provide 
information to nongovernmental groups located throughout the 
United States that assist low-income individuals or communities 
regarding food assistance, self-help activities to aid 
individuals in becoming self-reliant, and other activities that 
empower low-income individuals or communities to improve the 
lives of low-income individuals and reduce reliance on Federal, 
State, or local governmental agencies for food or other 
assistance.
    (b) Nongovernmental Organization.--The nongovernmental 
organization referred to in subsection (a) shall be selected on 
a competitive basis and shall--
            (1) be experienced in the gathering of first-hand 
        information in all the States through onsite visits to 
        grassroots organizations in each State that fight 
        hunger and poverty or that assist individuals in 
        becoming self-reliant;
            (2) be experienced in the establishment of a 
        clearinghouse similar to the clearinghouse described in 
        subsection (a);
            (3) agree to contribute in-kind resources towards 
        the establishment and maintenance of the clearinghouse 
        and agree to provide clearinghouse information, free of 
        charge, to the Secretary, States, counties, cities, 
        antihunger groups, and grassroots organizations that 
        assist individuals in becoming self-sufficient and 
        self-reliant;
            (4) be sponsored by an organization, or be an 
        organization, that--
                    (A) has helped combat hunger for at least 
                10 years;
                    (B) is committed to reinvesting in the 
                United States; and
                    (C) is knowledgeable regarding Federal 
                nutrition programs;
            (5) be experienced in communicating the purpose of 
        the clearinghouse through the media, including the 
        radio and print media, and be able to provide access to 
        the clearinghouse information through computer or 
        telecommunications technology, as well as through the 
        mails; and
            (6) be able to provide examples, advice, and 
        guidance to States, counties, cities, communities, 
        antihunger groups, and local organizations regarding 
        means of assisting individuals and communities to 
        reduce reliance on government programs, reduce hunger, 
        improve nutrition, and otherwise assist low-income 
        individuals and communities become more self-
        sufficient.
    (c) Audits.--The Secretary shall establish fair and 
reasonable auditing procedures regarding the expenditures of 
funds to carry out this section.
    (d) Funding.--Out of any moneys in the Treasury not 
otherwise appropriated, the Secretary of the Treasury shall pay 
to the Secretary to provide to the organization selected under 
this section, to establish and maintain the information 
clearinghouse, $200,000 for each of fiscal years 1995 and 1996, 
$150,000 for fiscal year 1997, $100,000 for fiscal year 1998, 
$166,000 for each of fiscal years 1999 through 2004, and 
$250,000 for each of fiscal years [2010 through 2018] 2010 
through 2019. The Secretary shall be entitled to receive the 
funds and shall accept the funds, without further 
appropriation.

           *       *       *       *       *       *       *

                              ----------                              

                         COMMODITY EXCHANGE ACT

           *       *       *       *       *       *       *
SEC. 4S. REGISTRATION AND REGULATION OF SWAP DEALERS AND MAJOR SWAP 
                    PARTICIPANTS.

    (a) Registration.--
            (1) Swap dealers.--It shall be unlawful for any 
        person to act as a swap dealer unless the person is 
        registered as a swap dealer with the Commission.
            (2) Major swap participants.--It shall be unlawful 
        for any person to act as a major swap participant 
        unless the person is registered as a major swap 
        participant with the Commission.
    (b) Requirements.--
            (1) In general.--A person shall register as a swap 
        dealer or major swap participant by filing a 
        registration application with the Commission.
            (2) Contents.--
                    (A) In general.--The application shall be 
                made in such form and manner as prescribed by 
                the Commission, and shall contain such 
                information, as the Commission considers 
                necessary concerning the business in which the 
                applicant is or will be engaged.
                    (B) Continual reporting.--A person that is 
                registered as a swap dealer or major swap 
                participant shall continue to submit to the 
                Commission reports that contain such 
                information pertaining to the business of the 
                person as the Commission may require.
            (3) Expiration.--Each registration under this 
        section shall expire at such time as the Commission may 
        prescribe by rule or regulation.
            (4) Rules.--Except as provided in subsections (d) 
        and (e), the Commission may prescribe rules applicable 
        to swap dealers and major swap participants, including 
        rules that limit the activities of swap dealers and 
        major swap participants.
            (5) Transition.--Rules under this section shall 
        provide for the registration of swap dealers and major 
        swap participants not later than 1 year after the date 
        of enactment of the Wall Street Transparency and 
        Accountability Act of 2010.
            (6) Statutory disqualification.--Except to the 
        extent otherwise specifically provided by rule, 
        regulation, or order, it shall be unlawful for a swap 
        dealer or a major swap participant to permit any person 
        associated with a swap dealer or a major swap 
        participant who is subject to a statutory 
        disqualification to effect or be involved in effecting 
        swaps on behalf of the swap dealer or major swap 
        participant, if the swap dealer or major swap 
        participant knew, or in the exercise of reasonable care 
        should have known, of the statutory disqualification.
    (c) Dual Registration.--
            (1) Swap dealer.--Any person that is required to be 
        registered as a swap dealer under this section shall 
        register with the Commission regardless of whether the 
        person also is a depository institution or is 
        registered with the Securities and Exchange Commission 
        as a security-based swap dealer.
            (2) Major swap participant.--Any person that is 
        required to be registered as a major swap participant 
        under this section shall register with the Commission 
        regardless of whether the person also is a depository 
        institution or is registered with the Securities and 
        Exchange Commission as a major security-based swap 
        participant.
    (d) Rulemakings.--
            (1) In general.--The Commission shall adopt rules 
        for persons that are registered as swap dealers or 
        major swap participants under this section.
            (2) Exception for prudential requirements.--
                    (A) In general.--The Commission may not 
                prescribe rules imposing prudential 
                requirements on swap dealers or major swap 
                participants for which there is a prudential 
                regulator.
                    (B) Applicability.--Subparagraph (A) does 
                not limit the authority of the Commission to 
                prescribe rules as directed under this section.
    (e) Capital and Margin Requirements.--
            (1) In general.--
                    (A) Swap dealers and major swap 
                participants that are banks.--Each registered 
                swap dealer and major swap participant for 
                which there is a prudential regulator shall 
                meet such minimum capital requirements and 
                minimum initial and variation margin 
                requirements as the prudential regulator shall 
                by rule or regulation prescribe under paragraph 
                (2)(A).
                    (B) Swap dealers and major swap 
                participants that are not banks.--Each 
                registered swap dealer and major swap 
                participant for which there is not a prudential 
                regulator shall meet such minimum capital 
                requirements and minimum initial and variation 
                margin requirements as the Commission shall by 
                rule or regulation prescribe under paragraph 
                (2)(B).
            (2) Rules.--
                    (A) Swap dealers and major swap 
                participants that are banks.--The prudential 
                regulators, in consultation with the Commission 
                and the Securities and Exchange Commission, 
                shall jointly adopt rules for swap dealers and 
                major swap participants, with respect to their 
                activities as a swap dealer or major swap 
                participant, for which there is a prudential 
                regulator imposing--
                            (i) capital requirements; and
                            (ii) both initial and variation 
                        margin requirements on all swaps that 
                        are not cleared by a registered 
                        derivatives clearing organization.
                    (B) Swap dealers and major swap 
                participants that are not banks.--The 
                Commission shall adopt rules for swap dealers 
                and major swap participants, with respect to 
                their activities as a swap dealer or major swap 
                participant, for which there is not a 
                prudential regulator imposing--
                            (i) capital requirements; and
                            (ii) both initial and variation 
                        margin requirements on all swaps that 
                        are not cleared by a registered 
                        derivatives clearing organization.
                    (C) Capital.--In setting capital 
                requirements for a person that is designated as 
                a swap dealer or a major swap participant for a 
                single type or single class or category of swap 
                or activities, the prudential regulator and the 
                Commission shall take into account the risks 
                associated with other types of swaps or classes 
                of swaps or categories of swaps engaged in and 
                the other activities conducted by that person 
                that are not otherwise subject to regulation 
                applicable to that person by virtue of the 
                status of the person as a swap dealer or a 
                major swap participant.
            (3) Standards for capital and margin.--
                    (A) In general.--To offset the greater risk 
                to the swap dealer or major swap participant 
                and the financial system arising from the use 
                of swaps that are not cleared, the requirements 
                imposed under paragraph (2) shall--
                            (i) help ensure the safety and 
                        soundness of the swap dealer or major 
                        swap participant; and
                            (ii) be appropriate for the risk 
                        associated with the non-cleared swaps 
                        held as a swap dealer or major swap 
                        participant.
                    (B) Rule of construction.--
                            (i) In general.--Nothing in this 
                        section shall limit, or be construed to 
                        limit, the authority--
                                    (I) of the Commission to 
                                set financial responsibility 
                                rules for a futures commission 
                                merchant or introducing broker 
                                registered pursuant to section 
                                4f(a) (except for section 
                                4f(a)(3)) in accordance with 
                                section 4f(b); or
                                    (II) of the Securities and 
                                Exchange Commission to set 
                                financial responsibility rules 
                                for a broker or dealer 
                                registered pursuant to section 
                                15(b) of the Securities 
                                Exchange Act of 1934 (15 U.S.C. 
                                78o(b)) (except for section 
                                15(b)(11) of that Act (15 
                                U.S.C. 78o(b)(11)) in 
                                accordance with section 
                                15(c)(3) of the Securities 
                                Exchange Act of 1934 (15 U.S.C. 
                                78o(c)(3)).
                            (ii) Futures commission merchants 
                        and other dealers.--A futures 
                        commission merchant, introducing 
                        broker, broker, or dealer shall 
                        maintain sufficient capital to comply 
                        with the stricter of any applicable 
                        capital requirements to which such 
                        futures commission merchant, 
                        introducing broker, broker, or dealer 
                        is subject to under this Act or the 
                        Securities Exchange Act of 1934 (15 
                        U.S.C. 78a et seq.).
                    (C) Margin requirements.--In prescribing 
                margin requirements under this subsection, the 
                prudential regulator with respect to swap 
                dealers and major swap participants for which 
                it is the prudential regulator and the 
                Commission with respect to swap dealers and 
                major swap participants for which there is no 
                prudential regulator shall permit the use of 
                noncash collateral, as the regulator or the 
                Commission determines to be consistent with--
                            (i) preserving the financial 
                        integrity of markets trading swaps; and
                            (ii) preserving the stability of 
                        the United States financial system.
                    (D) Comparability of capital and margin 
                requirements.--
                            (i) In general.--The prudential 
                        regulators, the Commission, and the 
                        Securities and Exchange Commission 
                        shall periodically (but not less 
                        frequently than annually) consult on 
                        minimum capital requirements and 
                        minimum initial and variation margin 
                        requirements.
                            (ii) Comparability.--The entities 
                        described in clause (i) shall, to the 
                        maximum extent practicable, establish 
                        and maintain comparable minimum capital 
                        requirements and minimum initial and 
                        variation margin requirements, 
                        including the use of non cash 
                        collateral, for--
                                    (I) swap dealers; and
                                    (II) major swap 
                                participants.
            (4) Applicability with respect to counterparties.--
        (A) The requirements of paragraphs (2)(A)(ii) and 
        (2)(B)(ii), including the initial and variation margin 
        requirements imposed by rules adopted pursuant to 
        paragraphs (2)(A)(ii) and (2)(B)(ii), shall not apply 
        to a swap in which a counterparty qualifies for an 
        exception under section 2(h)(7)(A), or an exemption 
        issued under section 4(c)(1) from the requirements of 
        section 2(h)(1)(A) for cooperative entities as defined 
        in such exemption, or satisfies the criteria in section 
        2(h)(7)(D).
                    (B) The initial margin requirements imposed 
                by rules adopted pursuant to paragraphs 
                (2)(A)(ii) and (2)(B)(ii) shall not apply to 
                any swap in which--
                            (i) one counterparty is a person in 
                        which the other counterparty, directly 
                        or indirectly, holds a majority 
                        ownership interest; or
                            (ii) a third party, directly or 
                        indirectly, holds a majority ownership 
                        interest in both counterparties.
    (f) Reporting and Recordkeeping.--
            (1) In general.--Each registered swap dealer and 
        major swap participant--
                    (A) shall make such reports as are required 
                by the Commission by rule or regulation 
                regarding the transactions and positions and 
                financial condition of the registered swap 
                dealer or major swap participant;
                    (B)(i) for which there is a prudential 
                regulator, shall keep books and records of all 
                activities related to the business as a swap 
                dealer or major swap participant in such form 
                and manner and for such period as may be 
                prescribed by the Commission by rule or 
                regulation; and
                    (ii) for which there is no prudential 
                regulator, shall keep books and records in such 
                form and manner and for such period as may be 
                prescribed by the Commission by rule or 
                regulation;
                    (C) shall keep books and records described 
                in subparagraph (B) open to inspection and 
                examination by any representative of the 
                Commission; and
                    (D) shall keep any such books and records 
                relating to swaps defined in section 
                1a(47)(A)(v) open to inspection and examination 
                by the Securities and Exchange Commission.
            (2) Rules.--The Commission shall adopt rules 
        governing reporting and recordkeeping for swap dealers 
        and major swap participants.
    (g) Daily Trading Records.--
            (1) In general.--Each registered swap dealer and 
        major swap participant shall maintain daily trading 
        records of the swaps of the registered swap dealer and 
        major swap participant and all related records 
        (including related cash or forward transactions) and 
        recorded communications, including electronic mail, 
        instant messages, and recordings of telephone calls, 
        for such period as may be required by the Commission by 
        rule or regulation.
            (2) Information requirements.--The daily trading 
        records shall include such information as the 
        Commission shall require by rule or regulation.
            (3) Counterparty records.--Each registered swap 
        dealer and major swap participant shall maintain daily 
        trading records for each counterparty in a manner and 
        form that is identifiable with each swap transaction.
            (4) Audit trail.--Each registered swap dealer and 
        major swap participant shall maintain a complete audit 
        trail for conducting comprehensive and accurate trade 
        reconstructions.
            (5) Rules.--The Commission shall adopt rules 
        governing daily trading records for swap dealers and 
        major swap participants.
    (h) Business Conduct Standards.--
            (1) In general.--Each registered swap dealer and 
        major swap participant shall conform with such business 
        conduct standards as prescribed in paragraph (3) and as 
        may be prescribed by the Commission by rule or 
        regulation that relate to--
                    (A) fraud, manipulation, and other abusive 
                practices involving swaps (including swaps that 
                are offered but not entered into);
                    (B) diligent supervision of the business of 
                the registered swap dealer and major swap 
                participant;
                    (C) adherence to all applicable position 
                limits; and
                    (D) such other matters as the Commission 
                determines to be appropriate.
            (2) Responsibilities with respect to special 
        entities.--
                    (A) Advising special entities.--A swap 
                dealer or major swap participant that acts as 
                an advisor to a special entity regarding a swap 
                shall comply with the requirements of 
                subparagraph (4) with respect to such Special 
                Entity.
                    (B) Entering of swaps with respect to 
                special entities.--A swap dealer that enters 
                into or offers to enter into swap with a 
                Special Entity shall comply with the 
                requirements of subparagraph (5) with respect 
                to such Special Entity.
                    (C) Special entity defined.--For purposes 
                of this subsection, the term ``special entity'' 
                means--
                            (i) a Federal agency;
                            (ii) a State, State agency, city, 
                        county, municipality, or other 
                        political subdivision of a State;
                            (iii) any employee benefit plan, as 
                        defined in section 3 of the Employee 
                        Retirement Income Security Act of 1974 
                        (29 U.S.C. 1002);
                            (iv) any governmental plan, as 
                        defined in section 3 of the Employee 
                        Retirement Income Security Act of 1974 
                        (29 U.S.C. 1002); or
                            (v) any endowment, including an 
                        endowment that is an organization 
                        described in section 501(c)(3) of the 
                        Internal Revenue Code of 1986.
            (3) Business conduct requirements.--Business 
        conduct requirements adopted by the Commission shall--
                    (A) establish a duty for a swap dealer or 
                major swap participant to verify that any 
                counterparty meets the eligibility standards 
                for an eligible contract participant;
                    (B) require disclosure by the swap dealer 
                or major swap participant to any counterparty 
                to the transaction (other than a swap dealer, 
                major swap participant, security-based swap 
                dealer, or major security-based swap 
                participant) of--
                            (i) information about the material 
                        risks and characteristics of the swap;
                            (ii) any material incentives or 
                        conflicts of interest that the swap 
                        dealer or major swap participant may 
                        have in connection with the swap; and
                            (iii)(I) for cleared swaps, upon 
                        the request of the counterparty, 
                        receipt of the daily mark of the 
                        transaction from the appropriate 
                        derivatives clearing organization; and
                            (II) for uncleared swaps, receipt 
                        of the daily mark of the transaction 
                        from the swap dealer or the major swap 
                        participant;
                    (C) establish a duty for a swap dealer or 
                major swap participant to communicate in a fair 
                and balanced manner based on principles of fair 
                dealing and good faith; and
                    (D) establish such other standards and 
                requirements as the Commission may determine 
                are appropriate in the public interest, for the 
                protection of investors, or otherwise in 
                furtherance of the purposes of this Act.
            (4) Special requirements for swap dealers acting as 
        advisors.--
                    (A) In general.--It shall be unlawful for a 
                swap dealer or major swap participant--
                            (i) to employ any device, scheme, 
                        or artifice to defraud any Special 
                        Entity or prospective customer who is a 
                        Special Entity;
                            (ii) to engage in any transaction, 
                        practice, or course of business that 
                        operates as a fraud or deceit on any 
                        Special Entity or prospective customer 
                        who is a Special Entity; or
                            (iii) to engage in any act, 
                        practice, or course of business that is 
                        fraudulent, deceptive or manipulative.
                    (B) Duty.--Any swap dealer that acts as an 
                advisor to a Special Entity shall have a duty 
                to act in the best interests of the Special 
                Entity.
                    (C) Reasonable efforts.--Any swap dealer 
                that acts as an advisor to a Special Entity 
                shall make reasonable efforts to obtain such 
                information as is necessary to make a 
                reasonable determination that any swap 
                recommended by the swap dealer is in the best 
                interests of the Special Entity, including 
                information relating to--
                            (i) the financial status of the 
                        Special Entity;
                            (ii) the tax status of the Special 
                        Entity;
                            (iii) the investment or financing 
                        objectives of the Special Entity; and
                            (iv) any other information that the 
                        Commission may prescribe by rule or 
                        regulation.
            (5) Special requirements for swap dealers as 
        counterparties to special entities.--
                    (A) Any swap dealer or major swap 
                participant that offers to enter or enters into 
                a swap with a Special Entity shall--
                            (i) comply with any duty 
                        established by the Commission for a 
                        swap dealer or major swap participant, 
                        with respect to a counterparty that is 
                        an eligible contract participant within 
                        the meaning of subclause (I) or (II) of 
                        clause (vii) of section 1a(18) of this 
                        Act, that requires the swap dealer or 
                        major swap participant to have a 
                        reasonable basis to believe that the 
                        counterparty that is a Special Entity 
                        has an independent representative 
                        that--
                                    (I) has sufficient 
                                knowledge to evaluate the 
                                transaction and risks;
                                    (II) is not subject to a 
                                statutory disqualification;
                                    (III) is independent of the 
                                swap dealer or major swap 
                                participant;
                                    (IV) undertakes a duty to 
                                act in the best interests of 
                                the counterparty it represents;
                                    (V) makes appropriate 
                                disclosures;
                                    (VI) will provide written 
                                representations to the Special 
                                Entity regarding fair pricing 
                                and the appropriateness of the 
                                transaction; and
                                    (VII) in the case of 
                                employee benefit plans subject 
                                to the Employee Retirement 
                                Income Security act of 1974, is 
                                a fiduciary as defined in 
                                section 3 of that Act (29 
                                U.S.C. 1002); and
                            (ii) before the initiation of the 
                        transaction, disclose to the Special 
                        Entity in writing the capacity in which 
                        the swap dealer is acting; and
                    (B) the Commission may establish such other 
                standards and requirements as the Commission 
                may determine are appropriate in the public 
                interest, for the protection of investors, or 
                otherwise in furtherance of the purposes of 
                this Act.
            (6) Rules.--The Commission shall prescribe rules 
        under this subsection governing business conduct 
        standards for swap dealers and major swap participants.
            (7) Applicability.--This section shall not apply 
        with respect to a transaction that is--
                    (A) initiated by a Special Entity on an 
                exchange or swap execution facility; and
                    (B) one in which the swap dealer or major 
                swap participant does not know the identity of 
                the counterparty to the transaction.
    (i) Documentation Standards.--
            (1) In general.--Each registered swap dealer and 
        major swap participant shall conform with such 
        standards as may be prescribed by the Commission by 
        rule or regulation that relate to timely and accurate 
        confirmation, processing, netting, documentation, and 
        valuation of all swaps.
            (2) Rules.--The Commission shall adopt rules 
        governing documentation standards for swap dealers and 
        major swap participants.
    (j) Duties.--Each registered swap dealer and major swap 
participant at all times shall comply with the following 
requirements:
            (1) Monitoring of trading.--The swap dealer or 
        major swap participant shall monitor its trading in 
        swaps to prevent violations of applicable position 
        limits.
            (2) Risk management procedures.--The swap dealer or 
        major swap participant shall establish robust and 
        professional risk management systems adequate for 
        managing the day-to-day business of the swap dealer or 
        major swap participant.
            (3) Disclosure of general information.--The swap 
        dealer or major swap participant shall disclose to the 
        Commission and to the prudential regulator for the swap 
        dealer or major swap participant, as applicable, 
        information concerning--
                    (A) terms and conditions of its swaps;
                    (B) swap trading operations, mechanisms, 
                and practices;
                    (C) financial integrity protections 
                relating to swaps; and
                    (D) other information relevant to its 
                trading in swaps.
            (4) Ability to obtain information.--The swap dealer 
        or major swap participant shall--
                    (A) establish and enforce internal systems 
                and procedures to obtain any necessary 
                information to perform any of the functions 
                described in this section; and
                    (B) provide the information to the 
                Commission and to the prudential regulator for 
                the swap dealer or major swap participant, as 
                applicable, on request.
            (5) Conflicts of interest.--The swap dealer and 
        major swap participant shall implement conflict-of-
        interest systems and procedures that--
                    (A) establish structural and institutional 
                safeguards to ensure that the activities of any 
                person within the firm relating to research or 
                analysis of the price or market for any 
                commodity or swap or acting in a role of 
                providing clearing activities or making 
                determinations as to accepting clearing 
                customers are separated by appropriate 
                informational partitions within the firm from 
                the review, pressure, or oversight of persons 
                whose involvement in pricing, trading, or 
                clearing activities might potentially bias 
                their judgment or supervision and contravene 
                the core principles of open access and the 
                business conduct standards described in this 
                Act; and
                    (B) address such other issues as the 
                Commission determines to be appropriate.
            (6) Antitrust considerations.--Unless necessary or 
        appropriate to achieve the purposes of this Act, a swap 
        dealer or major swap participant shall not--
                    (A) adopt any process or take any action 
                that results in any unreasonable restraint of 
                trade; or
                    (B) impose any material anticompetitive 
                burden on trading or clearing.
            (7) Rules.--The Commission shall prescribe rules 
        under this subsection governing duties of swap dealers 
        and major swap participants.
    (k) Designation of Chief Compliance Officer.--
            (1) In general.--Each swap dealer and major swap 
        participant shall designate an individual to serve as a 
        chief compliance officer.
            (2) Duties.--The chief compliance officer shall--
                    (A) report directly to the board or to the 
                senior officer of the swap dealer or major swap 
                participant;
                    (B) review the compliance of the swap 
                dealer or major swap participant with respect 
                to the swap dealer and major swap participant 
                requirements described in this section;
                    (C) in consultation with the board of 
                directors, a body performing a function similar 
                to the board, or the senior officer of the 
                organization, resolve any conflicts of interest 
                that may arise;
                    (D) be responsible for administering each 
                policy and procedure that is required to be 
                established pursuant to this section;
                    (E) ensure compliance with this Act 
                (including regulations) relating to swaps, 
                including each rule prescribed by the 
                Commission under this section;
                    (F) establish procedures for the 
                remediation of noncompliance issues identified 
                by the chief compliance officer through any--
                            (i) compliance office review;
                            (ii) look-back;
                            (iii) internal or external audit 
                        finding;
                            (iv) self-reported error; or
                            (v) validated complaint; and
                    (G) establish and follow appropriate 
                procedures for the handling, management 
                response, remediation, retesting, and closing 
                of noncompliance issues.
            (3) Annual reports.--
                    (A) In general.--In accordance with rules 
                prescribed by the Commission, the chief 
                compliance officer shall annually prepare and 
                sign a report that contains a description of--
                            (i) the compliance of the swap 
                        dealer or major swap participant with 
                        respect to this Act (including 
                        regulations); and
                            (ii) each policy and procedure of 
                        the swap dealer or major swap 
                        participant of the chief compliance 
                        officer (including the code of ethics 
                        and conflict of interest policies).
                    (B) Requirements.--A compliance report 
                under subparagraph (A) shall--
                            (i) accompany each appropriate 
                        financial report of the swap dealer or 
                        major swap participant that is required 
                        to be furnished to the Commission 
                        pursuant to this section; and
                            (ii) include a certification that, 
                        under penalty of law, the compliance 
                        report is accurate and complete.
    (l) Segregation Requirements.--
            (1) Segregation of assets held as collateral in 
        uncleared swap transactions.--
                    (A) Notification.--A swap dealer or major 
                swap participant shall be required to notify 
                the counterparty of the swap dealer or major 
                swap participant at the beginning of a swap 
                transaction that the counterparty has the right 
                to require segregation of the funds or other 
                property supplied to margin, guarantee, or 
                secure the obligations of the counterparty.
                    (B) Segregation and maintenance of funds.--
                At the request of a counterparty to a swap that 
                provides funds or other property to a swap 
                dealer or major swap participant to margin, 
                guarantee, or secure the obligations of the 
                counterparty, the swap dealer or major swap 
                participant shall--
                            (i) segregate the funds or other 
                        property for the benefit of the 
                        counterparty; and
                            (ii) in accordance with such rules 
                        and regulations as the Commission may 
                        promulgate, maintain the funds or other 
                        property in a segregated account 
                        separate from the assets and other 
                        interests of the swap dealer or major 
                        swap participant.
            (2) Applicability.--The requirements described in 
        paragraph (1) shall--
                    (A) apply only to a swap between a 
                counterparty and a swap dealer or major swap 
                participant that is not submitted for clearing 
                to a derivatives clearing organization; and
                    (B)(i) not apply to variation margin 
                payments; or
                    (ii) not preclude any commercial 
                arrangement regarding--
                            (I) the investment of segregated 
                        funds or other property that may only 
                        be invested in such investments as the 
                        Commission may permit by rule or 
                        regulation; and
                            (II) the related allocation of 
                        gains and losses resulting from any 
                        investment of the segregated funds or 
                        other property.
            (3) Use of independent third-party custodians.--The 
        segregated account described in paragraph (1) shall 
        be--
                    (A) carried by an independent third-party 
                custodian; and
                    (B) designated as a segregated account for 
                and on behalf of the counterparty.
            (4) Reporting requirement.--If the counterparty 
        does not choose to require segregation of the funds or 
        other property supplied to margin, guarantee, or secure 
        the obligations of the counterparty, the swap dealer or 
        major swap participant shall report to the counterparty 
        of the swap dealer or major swap participant on a 
        quarterly basis that the back office procedures of the 
        swap dealer or major swap participant relating to 
        margin and collateral requirements are in compliance 
        with the agreement of the counterparties.

           *       *       *       *       *       *       *

                              ----------                              

                     FOOD AND NUTRITION ACT OF 2008

           *       *       *       *       *       *       *
       APPROVAL OF RETAIL FOOD STORES AND WHOLESALE FOOD CONCERNS

    Sec. 9. (a)(1) Regulations issued pursuant to this Act 
shall provide for the submission of applications for approval 
by retail food stores and wholesale food concerns which desire 
to be authorized to accept and redeem benefits under the 
supplemental nutrition assistance program and for the approval 
of those applicants whose participation will effectuate the 
purposes of the supplemental nutrition assistance program. In 
determining the qualifications of applicants, there shall be 
considered among such other factors as may be appropriate, the 
following: (A) the nature and extent of the food business 
conducted by the applicant; (B) the volume of benefit 
transactions which may reasonably be expected to be conducted 
by the applicant food store or wholesale food concern; (C) 
whether the applicant is located in an area with significantly 
limited access to food; and (D) the business integrity and 
reputation of the applicant. Approval of an applicant shall be 
evidenced by the issuance to such applicant of a 
nontransferable certificate of approval. No retail food store 
or wholesale food concern of a type determined by the 
Secretary, based on factors that include size, location, and 
type of items sold, shall be approved to be authorized or 
reauthorized for participation in the supplemental nutrition 
assistance program unless an authorized employee of the 
Department of Agriculture, a designee of the Secretary, or, if 
practicable, an official of the State or local government 
designated by the Secretary has visited the store or concern 
for the purpose of determining whether the store or concern 
should be approved or reauthorized, as appropriate.
    (2) The Secretary shall issue regulations providing for--
            (A) the periodic reauthorization of retail food 
        stores and wholesale food concerns; and
            (B) periodic notice to participating retail food 
        stores and wholesale food concerns of the definitions 
        of ``retail food store'', ``staple foods'', ``eligible 
        foods'', and ``perishable foods''.
    (3) Authorization periods.--The Secretary shall establish 
specific time periods during which authorization to accept and 
redeem benefits shall be valid under the supplemental nutrition 
assistance program.
    (b)(1) No wholesale food concern may be authorized to 
accept and redeem benefits unless the Secretary determines that 
its participation is required for the effective and efficient 
operation of the supplemental nutrition assistance program. No 
co-located wholesale-retail food concern may be authorized to 
accept and redeem benefits as a retail food store, unless (A) 
the concern does a substantial level of retail food business, 
or (B) the Secretary determines that failure to authorize such 
a food concern as a retail food store would cause hardship to 
households that receive supplemental nutrition assistance 
program benefits. In addition, no firm may be authorized to 
accept and redeem benefits as both a retail food store and as a 
wholesale food concern at the same time.
    (2)(A) A buyer or transferee (other than a bona fide buyer 
or transferee) of a retail food store or wholesale food concern 
that has been disqualified under section 12(a) may not accept 
or redeem benefits until the Secretary receives full payment of 
any penalty imposed on such store or concern.
    (B) A buyer or transferee may not, as a result of the sale 
or transfer of such store or concern, be required to furnish a 
bond under section 12(d).
    (c) Regulations issued pursuant to this Act shall require 
an applicant retail food store or wholesale food concern to 
submit information, which may include relevant income and sales 
tax filing documents, purchase invoices, or program-related 
records, which will permit a determination to be made as to 
whether such applicant qualifies, or continues to qualify, for 
approval under the provisions of this Act or the regulations 
issued pursuant to this Act. The regulations may require retail 
food stores and wholesale food concerns to provide written 
authorization for the Secretary to verify all relevant tax 
filings with appropriate agencies and to obtain corroborating 
documentation from other sources so that the accuracy of 
information provided by the stores and concerns may be 
verified. Regulations issued pursuant to this Act shall provide 
for safeguards which limit the use or disclosure of information 
obtained under the authority granted by this subsection to 
purposes directly connected with administration and enforcement 
of the provisions of this Act or the regulations issued 
pursuant to this Act, except that such information may be 
disclosed to any used by Federal law enforcement and 
investigative agencies and law enforcement and investigative 
agencies of a State government for the purposes of 
administering or enforcing this Act or any other Federal or 
State law and the regulations issued under this Act or such 
law, and State agencies that administer the special 
supplemental nutrition program for women, infants and children, 
authorized under section 17 of the Child Nutrition Act of 1966, 
for purposes of administering the provisions of that Act and 
the regulations issued under that Act. Any person who 
publishes, divulges, discloses, or makes known in any manner or 
to any extent not authorized by Federal law (including a 
regulation) any information obtained under this subsection 
shall be fined not more than $1,000 or imprisoned not more than 
1 year, or both. The regulations shall establish the criteria 
to be used by the Secretary to determine whether the 
information is needed. The regulations shall not prohibit the 
audit and examination of such information by the Comptroller 
General of the United States authorized by any other provision 
of law.
    (d) Any retail food store or wholesale food concern which 
has failed upon application to receive approval to participate 
in the supplemental nutrition assistance program may obtain a 
hearing on such refusal as provided in section 14 of this Act. 
A retail food store or wholesale food concern that is denied 
approval to accept and redeem benefits because the store or 
concern does not meet criteria for approval established by the 
Secretary may not, for at least 6 months, submit a new 
application to participate in the program. The Secretary may 
establish a longer time period under the preceding sentence, 
including permanent disqualification, that reflects the 
severity of the basis of the denial.
    (e) Approved retail food stores shall display a sign 
providing information on how persons may report abuses they 
have observed in the operation of the supplemental nutrition 
assistance program.
    (f) In those areas in which the Secretary, in consultation 
with the Inspector General of the Department of Agriculture, 
finds evidence that the operation of house-to-house trade 
routes damages the program's integrity, the Secretary shall 
limit the participation of house-to-house trade routes to those 
routes that are reasonably necessary to provide adequate access 
to households.
    (g) EBT Service Requirement.--An approved retail food store 
shall provide adequate EBT service as described in section 
7(h)(3)(B).
    (h) Private Establishments.--
            (1) In general.--Subject to paragraph (2), no 
        private establishment that contracts with a State 
        agency to offer meals at concessional prices as 
        described in paragraphs (3), (4), and (9) of section 
        3(k) may be authorized to accept and redeem benefits 
        unless the Secretary determines that the participation 
        of the private establishment is required to meet a 
        documented need in accordance with section 11(e)(25).
            (2) Existing contracts.--
                    (A) In general.--If, on the day before the 
                date of enactment of this subsection, a State 
                has entered into a contract with a private 
                establishment described in paragraph (1) and 
                the Secretary has not determined that the 
                participation of the private establishment is 
                necessary to meet a documented need in 
                accordance with section 11(e)(25), the 
                Secretary shall allow the operation of the 
                private establishment to continue without that 
                determination of need for a period not to 
                exceed 180 days from the date on which the 
                Secretary establishes determination criteria, 
                by regulation, under section 11(e)(25).
                    (B) Justification.--If the Secretary 
                determines to terminate a contract with a 
                private establishment that is in effect on the 
                date of enactment of this subsection, the 
                Secretary shall provide justification to the 
                State in which the private establishment is 
                located for that termination.
            (3) Report to congress.--Not later than 90 days 
        after September 30, 2014, and 90 days after the last 
        day of each fiscal year thereafter, the Secretary shall 
        submit to the Committee on Agriculture of the House of 
        Representatives and the Committee on Agriculture, 
        Nutrition, and Forestry of the Senate a report on the 
        effectiveness of a program under this subsection using 
        any information received from States under section 
        11(e)(25) as well as any other information the 
        Secretary may have relating to the manner in which 
        benefits are used.
    (i) Nondisclosure.--Any supplemental nutrition assistance 
program transaction data that contains information specific to 
a retail food store, a retail food store location, a person, or 
other entity shall be exempt from the disclosure requirements 
of section 552(a) of title 5 of the United States Code pursuant 
to section 552(b)(3) of title 5 of the United States Code.

           *       *       *       *       *       *       *

                              ----------                              

 NATIONAL AGRICULTURAL RESEARCH, EXTENSION, AND TEACHING POLICY ACT OF 
                                  1977

           *       *       *       *       *       *       *
  TITLE XIV--NATIONAL AGRICULTURAL RESEARCH, EXTENSION, AND TEACHING 
POLICY ACT OF 1977

           *       *       *       *       *       *       *

              Subtitle G--1890 Land-Grant College Funding

SEC. 1444. EXTENSION AT 1890 LAND-GRANT COLLEGES, INCLUDING TUSKEGEE 
                    UNIVERSITY.

    (a) Authorization of Appropriations.--
            (1) In general.--There are hereby authorized to be 
        appropriated annually such sums as Congress may 
        determine necessary to support continuing agricultural 
        and forestry extension at colleges eligible to receive 
        funds under the Act of August 30, 1890 (26 Stat. 417-
        419, as amended; 7 U.S.C. 321-326 and 328), including 
        Tuskegee University (hereinafter in this section 
        referred to as ``eligible institutions'').
            (2) Minimum amount.--Beginning with fiscal year 
        2003, there shall be appropriated under this section 
        for each fiscal year an amount that is not less than 20 
        percent of the total appropriations for such year under 
        the Act of May 8, 1914 (7 U.S.C. 341 et seq.), and 
        related acts pertaining to cooperative extension work 
        at the land-grant institutions identified in the Act of 
        May 8, 1914 (38 Stat. 372, chapter 79; 7 U.S.C. 341 et 
        seq.), except that for the purpose of this calculation, 
        the total appropriations shall not include amounts made 
        available under section 3(d) of that Act (7 U.S.C. 
        343(d)).
            (3) Uses.--Funds appropriated under this section 
        shall be used for expenses of conducting extension 
        programs and activities, and for contributing to the 
        retirement of employees subject to the provisions of 
        the Act of March 4, 1940 (54 Stat. 30-40, as amended; 7 
        U.S.C. 331).
            (4) Carryover.--[No more than] For fiscal years 
        ending on or before September 30, 2018, no more than 20 
        per centum of the funds received [by an institution] by 
        an eligible institution under this section in any 
        fiscal year may be carried forward to the succeeding 
        fiscal year. For fiscal years beginning on or after 
        October 1, 2018, the limitation specified in the 
        preceding sentence shall not apply and 100 percent of 
        such funds may be carried forward to the succeeding 
        fiscal year.
    (b) Beginning with the fiscal year ending September 30, 
1979--
            (1) any funds annually appropriated under this 
        section up to the amount appropriated for the fiscal 
        year ending September 30, 1978, pursuant to section 
        3(d) of the Act of May 8, 1914, as amended, for 
        eligible institutions, shall be allocated among the 
        eligible institutions in the same proportion as funds 
        appropriated under section 3(d) of the Act of May 8, 
        1914, as amended, for the fiscal year ending September 
        30, 1978, are allocated among the eligible 
        institutions; and
            (2) any funds appropriated annually under this 
        section in excess of an amount equal to the amount 
        appropriated under section 3(d) of the Act of May 8, 
        1914, for the fiscal year ending September 30, 1978, 
        for eligible institutions, shall be distributed as 
        follows:
                    (A) A sum equal to 4 per centum of the 
                total amount appropriated each fiscal year 
                under this section shall be allotted to the 
                National Institute of Food and Agriculture of 
                the Department of Agriculture for 
                administrative, technical, and other services, 
                and for coordinating the extension work of the 
                Department of Agriculture and the several 
                States.
                    (B) Of the remainder, 20 per centum shall 
                be allotted among the eligible institutions in 
                equal proportions; 40 per centum shall be 
                allotted among the eligible institutions in the 
                proportion that the rural population of the 
                State in which each eligible institution is 
                located bears to the total rural population of 
                all the States in which eligible institutions 
                are located, as determined by the last 
                preceding decennial census current at the time 
                each such additional sum is first appropriated; 
                and the balance shall be allotted amount the 
                eligible institutions in the proportion that 
                the farm population of the State in which each 
                eligible institution is located bears to the 
                total farm population of all the States in 
                which the eligible institutions are located, as 
                determined by the last preceding decennial 
                census current at the time each such additional 
                sum is first appropriated.
In computing the distribution of funds allocated under 
paragraph (2) of this subsection, the allotments to Tuskegee 
University and Alabama Agricultural and Mechanical University 
shall be determined as if each institution were in a separate 
State.
    (c) The State director of the cooperative extension service 
and the extension administrator at the eligible institution in 
each State where an eligible institution is located shall 
jointly develop, by mutual agreement, a comprehensive program 
of extension for such State to be submitted for approval by the 
Secretary within one year after the date of enactment of this 
title and each five years thereafter.
    (d) Ascertainment of Entitlement to Funds; Time and Manner 
of Payment; State Reporting Requirements; Plans of Work.--
            (1) Ascertainment of entitlement.--On or about the 
        first day of October in each year after enactment of 
        this title, the Secretary shall ascertain whether each 
        eligible institution is entitled to receive its share 
        of the annual appropriation for extension work under 
        this section and the amount which it is entitled to 
        receive. Before the funds herein provided shall become 
        available to any eligible institution for any fiscal 
        year, plans for the work to be carried out under this 
        section shall be submitted, as part of the State plan 
        of work, and approved by the Secretary.
            (2) Time and manner of payment; related reports.--
        The amount to which an eligible institution is entitled 
        shall be paid in equal quarterly payments on or about 
        October 1, January 1, April 1, and July 1 of each year 
        to the treasurer or other officer of the eligible 
        institution duly authorized to receive such payments 
        and such officer shall be required to report to the 
        Secretary on or about the first day of December of each 
        year a detailed statement of the amount so received 
        during the previous fiscal year and its disbursement, 
        on forms prescribed by the Secretary.
            (3) Requirements related to plan of work.--Each 
        plan of work for an eligible institution required under 
        this section shall contain descriptions of the 
        following:
                    (A) The critical short-term, intermediate, 
                and long-term agricultural issues in the State 
                in which the eligible institution is located 
                and the current and planned extension programs 
                and projects targeted to address the issues.
                    (B) The process established to consult with 
                extension users regarding the identification of 
                critical agricultural issues in the State and 
                the development of extension programs and 
                projects targeted to address the issues.
                    (C) The efforts made to identify and 
                collaborate with other colleges and 
                universities within the State, and within other 
                States, that have a unique capacity to address 
                the identified agricultural issues in the State 
                and the extent of current and emerging efforts 
                (including regional extension efforts) to work 
                with those other institutions.
                    (D) The manner in which research and 
                extension, including research and extension 
                activities funded other than through formula 
                funds, will cooperate to address the critical 
                issues in the State, including the activities 
                to be carried out separately, the activities to 
                be carried out sequentially, and the activities 
                to be carried out jointly.
                    (E) The education and outreach programs 
                already underway to convey currently available 
                research results that are pertinent to a 
                critical agricultural issue, including efforts 
                to encourage multicounty cooperation in the 
                dissemination of research results.
            (4) Extension protocols.--
                    (A) In general.--The Secretary shall 
                develop protocols to be used to evaluate the 
                success of multistate, multi-institutional, and 
                multidisciplinary extension activities and 
                joint research and extension activities in 
                addressing critical agricultural issues 
                identified in the plans of work submitted under 
                this section.
                    (B) Consultation.--The Secretary shall 
                develop the protocols in consultation with the 
                Advisory Board and land-grant colleges and 
                universities.
            (5) Treatment of plans of work for other 
        purposes.--To the maximum extent practicable, the 
        Secretary shall consider a plan of work submitted under 
        this section to satisfy other appropriate Federal 
        reporting requirements.
    (e) If any portion of the moneys received by any eligible 
institution for the support and maintenance of extension work 
as provided in this section shall by any action or contingency 
be diminished or lost or be misapplied, it shall be replaced by 
such institution and until so replaced no subsequent 
appropriation shall be apportioned or paid to such institution. 
No portion of such moneys shall be applied, directly or 
indirectly, to the purchase, erection, preservation, or repair 
of any building or buildings, or the purchase or rental of 
land, or in college course teaching, lectures in college, or 
any other purpose not specified in this section. It shall be 
the duty of such institution, annually, on or about the first 
day of January, to make to the Governor of the State in which 
it is located a full and detailed report of its operations in 
extension work, including a detailed statement of receipts and 
expenditures from all sources for this purpose, a copy of which 
report shall be sent to the Secretary.
    (f) To the extent that the official mail consists of 
correspondence, bulletins, and reports for furtherance of the 
purposes of this section, it shall be transmitted in the mails 
of the United States. Such items may be mailed from a principal 
place of business of each eligible institution or from an 
established subunit of such institution.

           *       *       *       *       *       *       *

                              ----------                              

                  FEDERAL FOOD, DRUG, AND COSMETIC ACT

           *       *       *       *       *       *       *
CHAPTER IX--TOBACCO PRODUCTS

           *       *       *       *       *       *       *

SEC. 905. ANNUAL REGISTRATION.

    (a) Definitions.--In this section:
            (1) Manufacture, preparation, compounding, or 
        processing.--The term ``manufacture, preparation, 
        compounding, or processing'' shall include repackaging 
        or otherwise changing the container, wrapper, or 
        labeling of any tobacco product package in furtherance 
        of the distribution of the tobacco product from the 
        original place of manufacture to the person who makes 
        final delivery or sale to the ultimate consumer or 
        user.
            (2) Name.--The term ``name'' shall include in the 
        case of a partnership the name of each partner and, in 
        the case of a corporation, the name of each corporate 
        officer and director, and the State of incorporation.
    (b) Registration by Owners and Operators.--On or before 
December 31 of each year, every person who owns or operates any 
establishment in any State engaged in the manufacture, 
preparation, compounding, or processing of a tobacco product or 
tobacco products shall register with the Secretary the name, 
places of business, and all such establishments of that person. 
If enactment of the Family Smoking Prevention and Tobacco 
Control Act occurs in the second half of the calendar year, the 
Secretary shall designate a date no later than 6 months into 
the subsequent calendar year by which registration pursuant to 
this subsection shall occur.
    (c) Registration by New Owners and Operators.--Every person 
upon first engaging in the manufacture, preparation, 
compounding, or processing of a tobacco product or tobacco 
products in any establishment owned or operated in any State by 
that person shall immediately register with the Secretary that 
person's name, place of business, and such establishment.
    (d) Registration of Added Establishments.--Every person 
required to register under subsection (b) or (c) shall 
immediately register with the Secretary any additional 
establishment which that person owns or operates in any State 
and in which that person begins the manufacture, preparation, 
compounding, or processing of a tobacco product or tobacco 
products.
    (e) Uniform Product Identification System.--The Secretary 
may by regulation prescribe a uniform system for the 
identification of tobacco products and may require that persons 
who are required to list such tobacco products under subsection 
(i) shall list such tobacco products in accordance with such 
system.
    (f) Public Access to Registration Information.--The 
Secretary shall make available for inspection, to any person so 
requesting, any registration filed under this section.
    (g) Biennial Inspection of Registered Establishments.--
Every establishment registered with the Secretary under this 
section shall be subject to inspection under section 704 or 
subsection (h), and every such establishment engaged in the 
manufacture, compounding, or processing of a tobacco product or 
tobacco products shall be so inspected by 1 or more officers or 
employees duly designated by the Secretary at least once in the 
2-year period beginning with the date of registration of such 
establishment under this section and at least once in every 
successive 2-year period thereafter.
    (h) Registration by Foreign Establishments.--Any 
establishment within any foreign country engaged in the 
manufacture, preparation, compounding, or processing of a 
tobacco product or tobacco products, shall register under this 
section under regulations promulgated by the Secretary. Such 
regulations shall require such establishment to provide the 
information required by subsection (i) and shall include 
provisions for registration of any such establishment upon 
condition that adequate and effective means are available, by 
arrangement with the government of such foreign country or 
otherwise, to enable the Secretary to determine from time to 
time whether tobacco products manufactured, prepared, 
compounded, or processed in such establishment, if imported or 
offered for import into the United States, shall be refused 
admission on any of the grounds set forth in section 801(a).
    (i) Registration Information.--
            (1) Product list.--Every person who registers with 
        the Secretary under subsection (b), (c), (d), or (h) 
        shall, at the time of registration under any such 
        subsection, file with the Secretary a list of all 
        tobacco products which are being manufactured, 
        prepared, compounded, or processed by that person for 
        commercial distribution and which have not been 
        included in any list of tobacco products filed by that 
        person with the Secretary under this paragraph or 
        paragraph (2) before such time of registration. Such 
        list shall be prepared in such form and manner as the 
        Secretary may prescribe and shall be accompanied by--
                    (A) in the case of a tobacco product 
                contained in the applicable list with respect 
                to which a tobacco product standard has been 
                established under section 907 or which is 
                subject to section 910, a reference to the 
                authority for the marketing of such tobacco 
                product and a copy of all labeling for such 
                tobacco product;
                    (B) in the case of any other tobacco 
                product contained in an applicable list, a copy 
                of all consumer information and other labeling 
                for such tobacco product, a representative 
                sampling of advertisements for such tobacco 
                product, and, upon request made by the 
                Secretary for good cause, a copy of all 
                advertisements for a particular tobacco 
                product; and
                    (C) if the registrant filing a list has 
                determined that a tobacco product contained in 
                such list is not subject to a tobacco product 
                standard established under section 907, a brief 
                statement of the basis upon which the 
                registrant made such determination if the 
                Secretary requests such a statement with 
                respect to that particular tobacco product.
            (2) Consultation with respect to forms.--The 
        Secretary shall consult with the Secretary of the 
        Treasury in developing the forms to be used for 
        registration under this section to minimize the burden 
        on those persons required to register with both the 
        Secretary and the Tax and Trade Bureau of the 
        Department of the Treasury.
            (3) Biannual report of any change in product 
        list.--Each person who registers with the Secretary 
        under this section shall report to the Secretary once 
        during the month of June of each year and once during 
        the month of December of each year the following:
                    (A) A list of each tobacco product 
                introduced by the registrant for commercial 
                distribution which has not been included in any 
                list previously filed by that person with the 
                Secretary under this subparagraph or paragraph 
                (1). A list under this subparagraph shall list 
                a tobacco product by its established name and 
                shall be accompanied by the other information 
                required by paragraph (1).
                    (B) If since the date the registrant last 
                made a report under this paragraph that person 
                has discontinued the manufacture, preparation, 
                compounding, or processing for commercial 
                distribution of a tobacco product included in a 
                list filed under subparagraph (A) or paragraph 
                (1), notice of such discontinuance, the date of 
                such discontinuance, and the identity of its 
                established name.
                    (C) If since the date the registrant 
                reported under subparagraph (B) a notice of 
                discontinuance that person has resumed the 
                manufacture, preparation, compounding, or 
                processing for commercial distribution of the 
                tobacco product with respect to which such 
                notice of discontinuance was reported, notice 
                of such resumption, the date of such 
                resumption, the identity of such tobacco 
                product by established name, and other 
                information required by paragraph (1), unless 
                the registrant has previously reported such 
                resumption to the Secretary under this 
                subparagraph.
                    (D) Any material change in any information 
                previously submitted under this paragraph or 
                paragraph (1).
    (j) Report Preceding Introduction of Certain Substantially 
Equivalent Products Into Interstate Commerce.--
            (1) In general.--Each person who is required to 
        register under this section and who proposes to begin 
        the introduction or delivery for introduction into 
        interstate commerce for commercial distribution of a 
        tobacco product intended for human use that was not 
        commercially marketed (other than for test marketing) 
        in the United States as of February 15, 2007, shall, at 
        least 90 days prior to making such introduction or 
        delivery, report to the Secretary (in such form and 
        manner as the Secretary shall prescribe)--
                    (A) the basis for such person's 
                determination that--
                            (i) the tobacco product is 
                        substantially equivalent, within the 
                        meaning of section 910, to a tobacco 
                        product commercially marketed (other 
                        than for test marketing) in the United 
                        States as of February 15, 2007, or to a 
                        tobacco product subject to an order 
                        that the Secretary has issued to such 
                        person under subsection (c)(1)(A)(i) of 
                        section 910, or to a tobacco product 
                        that the Secretary has previously 
                        determined, pursuant to subsection 
                        (a)(3) of section 910, is substantially 
                        equivalent and that is in compliance 
                        with the requirements of this Act; or
                            (ii) the tobacco product is 
                        modified within the meaning of 
                        paragraph (3), the modifications are to 
                        a product that is commercially marketed 
                        and in compliance with the requirements 
                        of this Act, and all of the 
                        modifications are covered by exemptions 
                        granted by the Secretary pursuant to 
                        paragraph (3); and
                    (B) action taken by such person to comply 
                with the requirements under section 907 that 
                are applicable to the tobacco product.
            (2) Application to certain post-february 15, 2007, 
        products.--A report under this subsection for a tobacco 
        product that was first introduced or delivered for 
        introduction into interstate commerce for commercial 
        distribution in the United States after February 15, 
        2007, and prior to the date that is 21 months after the 
        date of enactment of the Family Smoking Prevention and 
        Tobacco Control Act shall be submitted to the Secretary 
        not later than 21 months after such date of enactment.
            (3) Exemptions.--
                    (A) In general.--The Secretary may exempt 
                from the requirements of this subsection 
                relating to the demonstration that a tobacco 
                product is substantially equivalent within the 
                meaning of section 910, tobacco products that 
                are modified by adding or deleting a tobacco 
                additive, or increasing or decreasing the 
                quantity of an existing tobacco additive, if 
                the Secretary determines that--
                            (i) such modification would be a 
                        minor modification of a tobacco product 
                        that can be sold under this Act;
                            (ii) a report under this subsection 
                        is not necessary to ensure that 
                        permitting the tobacco product to be 
                        marketed would be appropriate for 
                        protection of the public health; and
                            (iii) an exemption is otherwise 
                        appropriate.
                    (B) Regulations.--Not later than 15 months 
                after the date of enactment of the Family 
                Smoking Prevention and Tobacco Control Act, the 
                Secretary shall issue regulations to implement 
                this paragraph.

SEC. 906. GENERAL PROVISIONS RESPECTING CONTROL OF TOBACCO PRODUCTS.

    (a) In General.--Any requirement established by or under 
section 902, 903, 905, or 909 applicable to a tobacco product 
shall apply to such tobacco product until the applicability of 
the requirement to the tobacco product has been changed by 
action taken under section 907, section 910, section 911, or 
subsection (d) of this section, and any requirement established 
by or under section 902, 903, 905, or 909 which is inconsistent 
with a requirement imposed on such tobacco product under 
section 907, section 910, section 911, or subsection (d) of 
this section shall not apply to such tobacco product.
    (b) Information on Public Access and Comment.--Each notice 
of proposed rulemaking or other notification under section 907, 
908, 909, 910, or 911 or under this section, any other notice 
which is published in the Federal Register with respect to any 
other action taken under any such section and which states the 
reasons for such action, and each publication of findings 
required to be made in connection with rulemaking under any 
such section shall set forth--
            (1) the manner in which interested persons may 
        examine data and other information on which the notice 
        or findings is based; and
            (2) the period within which interested persons may 
        present their comments on the notice or findings 
        (including the need therefore) orally or in writing, 
        which period shall be at least 60 days but may not 
        exceed 90 days unless the time is extended by the 
        Secretary by a notice published in the Federal Register 
        stating good cause therefore.
    (c) Limited Confidentiality of Information.--Any 
information reported to or otherwise obtained by the Secretary 
or the Secretary's representative under section 903, 904, 907, 
908, 909, 910, 911, or 704, or under subsection (e) or (f) of 
this section, which is exempt from disclosure under subsection 
(a) of section 552 of title 5, United States Code, by reason of 
subsection (b)(4) of that section shall be considered 
confidential and shall not be disclosed, except that the 
information may be disclosed to other officers or employees 
concerned with carrying out this chapter, or when relevant in 
any proceeding under this chapter.
    (d) Restrictions.--
            (1) In general.--The Secretary may by regulation 
        require restrictions on the sale and distribution of a 
        tobacco product, including restrictions on the access 
        to, and the advertising and promotion of, the tobacco 
        product, if the Secretary determines that such 
        regulation would be appropriate for the protection of 
        the public health. The Secretary may by regulation 
        impose restrictions on the advertising and promotion of 
        a tobacco product consistent with and to full extent 
        permitted by the first amendment to the Constitution. 
        The finding as to whether such regulation would be 
        appropriate for the protection of the public health 
        shall be determined with respect to the risks and 
        benefits to the population as a whole, including users 
        and nonusers of the tobacco product, and taking into 
        account--
                    (A) the increased or decreased likelihood 
                that existing users of tobacco products will 
                stop using such products; and
                    (B) the increased or decreased likelihood 
                that those who do not use tobacco products will 
                start using such products.
        No such regulation may require that the sale or 
        distribution of a tobacco product be limited to the 
        written or oral authorization of a practitioner 
        licensed by law to prescribe medical products.
            (2) Label statements.--The label of a tobacco 
        product shall bear such appropriate statements of the 
        restrictions required by a regulation under subsection 
        (a) as the Secretary may in such regulation prescribe.
            (3) Limitations.--
                    (A) In general.--No restrictions under 
                paragraph (1) may--
                            (i) prohibit the sale of any 
                        tobacco product in face-to-face 
                        transactions by a specific category of 
                        retail outlets; or
                            (ii) establish a minimum age of 
                        sale of tobacco products to any person 
                        older than 18 years of age.
                    (B) Matchbooks.--For purposes of any 
                regulations issued by the Secretary, matchbooks 
                of conventional size containing not more than 
                20 paper matches, and which are customarily 
                given away for free with the purchase of 
                tobacco products, shall be considered as adult-
                written publications which shall be permitted 
                to contain advertising. Notwithstanding the 
                preceding sentence, if the Secretary finds that 
                such treatment of matchbooks is not appropriate 
                for the protection of the public health, the 
                Secretary may determine by regulation that 
                matchbooks shall not be considered adult-
                written publications.
            [(4) Remote sales.--
                    [(A) In general.--The Secretary shall--
                            [(i) within 18 months after the 
                        date of enactment of the Family Smoking 
                        Prevention and Tobacco Control Act, 
                        promulgate regulations regarding the 
                        sale and distribution of tobacco 
                        products that occur through means other 
                        than a direct, face-to-face exchange 
                        between a retailer and a consumer in 
                        order to prevent the sale and 
                        distribution of tobacco products to 
                        individuals who have not attained the 
                        minimum age established by applicable 
                        law for the purchase of such products, 
                        including requirements for age 
                        verification; and
                            [(ii) within 2 years after such 
                        date of enactment, issue regulations to 
                        address the promotion and marketing of 
                        tobacco products that are sold or 
                        distributed through means other than a 
                        direct, face-to-face exchange between a 
                        retailer and a consumer in order to 
                        protect individuals who have not 
                        attained the minimum age established by 
                        applicable law for the purchase of such 
                        products.
                    [(B) Relation to other authority.--Nothing 
                in this paragraph limits the authority of the 
                Secretary to take additional actions under the 
                other paragraphs of this subsection.]
            (4) Age verification for remote sales.--A delivery 
        seller of vapor products--
                    (A) shall not sell, deliver, or cause to be 
                delivered any vapor products to a person under 
                the minimum age required for the legal sale or 
                purchase of vapor products, as determined by 
                the applicable law at the place of delivery; 
                and
                    (B) shall not accept a delivery sale order 
                from a person without--
                            (i) obtaining the full name, birth 
                        date, and residential address of that 
                        person; and
                            (ii) verifying the information 
                        provided in clause (i), through the use 
                        of a commercially available database or 
                        aggregate of databases, consisting 
                        primarily of data from government 
                        sources, that are regularly used by 
                        government and businesses for the 
                        purpose of age and identity 
                        verification and authentication, to 
                        ensure that the purchaser is at least 
                        the minimum age required for the legal 
                        sale or purchase of vapor products, as 
                        determined by the applicable law at the 
                        place of delivery.
                    (C) Limitation.--No database being used for 
                age and identity verification under 
                subparagraph (B)(ii) shall be in the possession 
                or under the control of the delivery seller, or 
                be subject to any changes or supplementation by 
                the delivery seller.
                    (D) Definitions.--In this paragraph:
                            (i) The term ``delivery sale'' 
                        means a sale of vapor products in 
                        which--
                                    (I) the consumer submits 
                                the order for the sale by means 
                                of a telephone or other method 
                                of voice transmission, the 
                                mails, or the Internet or other 
                                online service, or the seller 
                                is otherwise not in the 
                                physical presence of the buyer 
                                when the request for purchase 
                                or order is made; or
                                    (II) the vapor products are 
                                delivered to the buyer by 
                                common carrier, private 
                                delivery service, or other 
                                method of remote delivery, or 
                                the seller is not in the 
                                physical presence of the buyer 
                                when the buyer obtains 
                                possession of the vapor 
                                products.
                            (ii) The term ``delivery seller'' 
                        means a person who makes a delivery 
                        sale, or provides an online marketplace 
                        to facilitate a delivery sale.
                            (iii) The term ``online 
                        marketplace'' means an online portal or 
                        other digital or similar platform that 
                        facilitates the sale of products to 
                        consumers, through retail sale, 
                        auction, or similar transactions.
    (e) Good Manufacturing Practice Requirements.--
            (1) Methods, facilities, and controls to conform.--
                    (A) In general.--In applying manufacturing 
                restrictions to tobacco, the Secretary shall, 
                in accordance with subparagraph (B), prescribe 
                regulations (which may differ based on the type 
                of tobacco product involved) requiring that the 
                methods used in, and the facilities and 
                controls used for, the manufacture, 
                preproduction design validation (including a 
                process to assess the performance of a tobacco 
                product), packing, and storage of a tobacco 
                product conform to current good manufacturing 
                practice, or hazard analysis and critical 
                control point methodology, as prescribed in 
                such regulations to assure that the public 
                health is protected and that the tobacco 
                product is in compliance with this chapter. 
                Such regulations may provide for the testing of 
                raw tobacco for pesticide chemical residues 
                regardless of whether a tolerance for such 
                chemical residues has been established.
                    (B) Requirements.--The Secretary shall--
                            (i) before promulgating any 
                        regulation under subparagraph (A), 
                        afford the Tobacco Products Scientific 
                        Advisory Committee an opportunity to 
                        submit recommendations with respect to 
                        the regulation proposed to be 
                        promulgated;
                            (ii) before promulgating any 
                        regulation under subparagraph (A), 
                        afford opportunity for an oral hearing;
                            (iii) provide the Tobacco Products 
                        Scientific Advisory Committee a 
                        reasonable time to make its 
                        recommendation with respect to proposed 
                        regulations under subparagraph (A);
                            (iv) in establishing the effective 
                        date of a regulation promulgated under 
                        this subsection, take into account the 
                        differences in the manner in which the 
                        different types of tobacco products 
                        have historically been produced, the 
                        financial resources of the different 
                        tobacco product manufacturers, and the 
                        state of their existing manufacturing 
                        facilities, and shall provide for a 
                        reasonable period of time for such 
                        manufacturers to conform to good 
                        manufacturing practices; and
                            (v) not require any small tobacco 
                        product manufacturer to comply with a 
                        regulation under subparagraph (A) for 
                        at least 4 years following the 
                        effective date established by the 
                        Secretary for such regulation.
            (2) Exemptions; variances.--
                    (A) Petition.--Any person subject to any 
                requirement prescribed under paragraph (1) may 
                petition the Secretary for a permanent or 
                temporary exemption or variance from such 
                requirement. Such a petition shall be submitted 
                to the Secretary in such form and manner as the 
                Secretary shall prescribe and shall--
                            (i) in the case of a petition for 
                        an exemption from a requirement, set 
                        forth the basis for the petitioner's 
                        determination that compliance with the 
                        requirement is not required to assure 
                        that the tobacco product will be in 
                        compliance with this chapter;
                            (ii) in the case of a petition for 
                        a variance from a requirement, set 
                        forth the methods proposed to be used 
                        in, and the facilities and controls 
                        proposed to be used for, the 
                        manufacture, packing, and storage of 
                        the tobacco product in lieu of the 
                        methods, facilities, and controls 
                        prescribed by the requirement; and
                            (iii) contain such other 
                        information as the Secretary shall 
                        prescribe.
                    (B) Referral to the tobacco products 
                scientific advisory committee.--The Secretary 
                may refer to the Tobacco Products Scientific 
                Advisory Committee any petition submitted under 
                subparagraph (A). The Tobacco Products 
                Scientific Advisory Committee shall report its 
                recommendations to the Secretary with respect 
                to a petition referred to it within 60 days 
                after the date of the petition's referral. 
                Within 60 days after--
                            (i) the date the petition was 
                        submitted to the Secretary under 
                        subparagraph (A); or
                            (ii) the day after the petition was 
                        referred to the Tobacco Products 
                        Scientific Advisory Committee,
                whichever occurs later, the Secretary shall by 
                order either deny the petition or approve it.
                    (C) Approval.--The Secretary may approve--
                            (i) a petition for an exemption for 
                        a tobacco product from a requirement if 
                        the Secretary determines that 
                        compliance with such requirement is not 
                        required to assure that the tobacco 
                        product will be in compliance with this 
                        chapter; and
                            (ii) a petition for a variance for 
                        a tobacco product from a requirement if 
                        the Secretary determines that the 
                        methods to be used in, and the 
                        facilities and controls to be used for, 
                        the manufacture, packing, and storage 
                        of the tobacco product in lieu of the 
                        methods, facilities, and controls 
                        prescribed by the requirement are 
                        sufficient to assure that the tobacco 
                        product will be in compliance with this 
                        chapter.
                    (D) Conditions.--An order of the Secretary 
                approving a petition for a variance shall 
                prescribe such conditions respecting the 
                methods used in, and the facilities and 
                controls used for, the manufacture, packing, 
                and storage of the tobacco product to be 
                granted the variance under the petition as may 
                be necessary to assure that the tobacco product 
                will be in compliance with this chapter.
                    (E) Hearing.--After the issuance of an 
                order under subparagraph (B) respecting a 
                petition, the petitioner shall have an 
                opportunity for an informal hearing on such 
                order.
            (3) Compliance.--Compliance with requirements under 
        this subsection shall not be required before the end of 
        the 3-year period following the date of enactment of 
        the Family Smoking Prevention and Tobacco Control Act.
    (f) Research and Development.--The Secretary may enter into 
contracts for research, testing, and demonstrations respecting 
tobacco products and may obtain tobacco products for research, 
testing, and demonstration purposes.

           *       *       *       *       *       *       *

SEC. 910. APPLICATION FOR REVIEW OF CERTAIN TOBACCO PRODUCTS.

    (a) In General.--
            (1) New tobacco product defined.--For purposes of 
        this section the term ``new tobacco product'' means--
                    (A) any tobacco product (including those 
                products in test markets) that was not 
                commercially marketed in the United States as 
                of February 15, 2007; or
                    (B) any modification (including a change in 
                design, any component, any part, or any 
                constituent, including a smoke constituent, or 
                in the content, delivery or form of nicotine, 
                or any other additive or ingredient) of a 
                tobacco product where the modified product was 
                commercially marketed in the United States 
                after February 15, 2007.
            (2) Premarket review required.--
                    (A) New products.--An order under 
                subsection (c)(1)(A)(i) for a new tobacco 
                product is required unless--
                            (i) the manufacturer has submitted 
                        a report under section 905(j); and the 
                        Secretary has issued an order that the 
                        tobacco product--
                                    (I) is substantially 
                                equivalent to a tobacco product 
                                commercially marketed (other 
                                than for test marketing) in the 
                                United States as of February 
                                15, 2007, or to a tobacco 
                                product subject to an order 
                                that the Secretary has issued 
                                to such person under subsection 
                                (c)(1)(A)(i); and
                                    (II) is in compliance with 
                                the requirements of this Act; 
                                or
                            (ii) the tobacco product is exempt 
                        from the requirements of section 905(j) 
                        pursuant to a regulation issued under 
                        section 905(j)(3).
                    (B) Application to certain post-february 
                15, 2007, products.--Subparagraph (A) shall not 
                apply to a tobacco product--
                            (i) that was first introduced or 
                        delivered for introduction into 
                        interstate commerce for commercial 
                        distribution in the United States after 
                        February 15, 2007, and prior to the 
                        date that is 21 months after the date 
                        of enactment of the Family Smoking 
                        Prevention and Tobacco Control Act; and
                            (ii) for which a report was 
                        submitted under section 905(j) within 
                        such 21-month period,
                except that subparagraph (A) shall apply to the 
                tobacco product if the Secretary issues an 
                order that the tobacco product is not 
                substantially equivalent.
            (3) Substantially equivalent defined.--
                    (A) In general.--In this section and 
                section 905(j), the term ``substantially 
                equivalent'' or ``substantial equivalence'' 
                means, with respect to the tobacco product 
                being compared to the predicate tobacco 
                product, that the Secretary by order has found 
                that the tobacco product--
                            (i) has the same characteristics as 
                        the predicate tobacco product; or
                            (ii) has different characteristics 
                        and the information submitted contains 
                        information, including clinical data if 
                        deemed necessary by the Secretary, that 
                        demonstrates that it is not appropriate 
                        to regulate the product under this 
                        section because the product does not 
                        raise different questions of public 
                        health.
                    (B) Characteristics.--In subparagraph (A), 
                the term ``characteristics'' means the 
                materials, ingredients, design, composition, 
                heating source, or other features of a tobacco 
                product.
                    (C) Limitation.--A tobacco product may not 
                be found to be substantially equivalent to a 
                predicate tobacco product that has been removed 
                from the market at the initiative of the 
                Secretary or that has been determined by a 
                judicial order to be misbranded or adulterated.
            (4) Health information.--
                    (A) Summary.--As part of a submission under 
                section 905(j) respecting a tobacco product, 
                the person required to file a premarket 
                notification under such section shall provide 
                an adequate summary of any health information 
                related to the tobacco product or state that 
                such information will be made available upon 
                request by any person.
                    (B) Required information.--Any summary 
                under subparagraph (A) respecting a tobacco 
                product shall contain detailed information 
                regarding data concerning adverse health 
                effects and shall be made available to the 
                public by the Secretary within 30 days of the 
                issuance of a determination that such tobacco 
                product is substantially equivalent to another 
                tobacco product.
    (b) Application.--
            (1) Contents.--An application under this section 
        shall contain--
                    (A) full reports of all information, 
                published or known to, or which should 
                reasonably be known to, the applicant, 
                concerning investigations which have been made 
                to show the health risks of such tobacco 
                product and whether such tobacco product 
                presents less risk than other tobacco products;
                    (B) a full statement of the components, 
                ingredients, additives, and properties, and of 
                the principle or principles of operation, of 
                such tobacco product;
                    (C) a full description of the methods used 
                in, and the facilities and controls used for, 
                the manufacture, processing, and, when 
                relevant, packing and installation of, such 
                tobacco product;
                    (D) an identifying reference to any tobacco 
                product standard under section 907 which would 
                be applicable to any aspect of such tobacco 
                product, and either adequate information to 
                show that such aspect of such tobacco product 
                fully meets such tobacco product standard or 
                adequate information to justify any deviation 
                from such standard;
                    (E) such samples of such tobacco product 
                and of components thereof as the Secretary may 
                reasonably require;
                    (F) specimens of the labeling proposed to 
                be used for such tobacco product; and
                    (G) such other information relevant to the 
                subject matter of the application as the 
                Secretary may require.
            (2) Referral to tobacco products scientific 
        advisory committee.--Upon receipt of an application 
        meeting the requirements set forth in paragraph (1), 
        the Secretary--
                    (A) may, on the Secretary's own initiative; 
                or
                    (B) may, upon the request of an applicant,
        refer such application to the Tobacco Products 
        Scientific Advisory Committee for reference and for 
        submission (within such period as the Secretary may 
        establish) of a report and recommendation respecting 
        the application, together with all underlying data and 
        the reasons or basis for the recommendation.
    (c) Action on Application.--
            (1) Deadline.--
                    (A) In general.--As promptly as possible, 
                but in no event later than 180 days after the 
                receipt of an application under subsection (b), 
                the Secretary, after considering the report and 
                recommendation submitted under subsection 
                (b)(2), shall--
                            (i) issue an order that the new 
                        product may be introduced or delivered 
                        for introduction into interstate 
                        commerce if the Secretary finds that 
                        none of the grounds specified in 
                        paragraph (2) of this subsection 
                        applies; or
                            (ii) issue an order that the new 
                        product may not be introduced or 
                        delivered for introduction into 
                        interstate commerce if the Secretary 
                        finds (and sets forth the basis for 
                        such finding as part of or accompanying 
                        such denial) that 1 or more grounds for 
                        denial specified in paragraph (2) of 
                        this subsection apply.
                    (B) Restrictions on sale and 
                distribution.--An order under subparagraph 
                (A)(i) may require that the sale and 
                distribution of the tobacco product be 
                restricted but only to the extent that the sale 
                and distribution of a tobacco product may be 
                restricted under a regulation under section 
                906(d).
            (2) Denial of application.--The Secretary shall 
        deny an application submitted under subsection (b) if, 
        upon the basis of the information submitted to the 
        Secretary as part of the application and any other 
        information before the Secretary with respect to such 
        tobacco product, the Secretary finds that--
                    (A) there is a lack of a showing that 
                permitting such tobacco product to be marketed 
                would be appropriate for the protection of the 
                public health;
                    (B) the methods used in, or the facilities 
                or controls used for, the manufacture, 
                processing, or packing of such tobacco product 
                do not conform to the requirements of section 
                906(e);
                    (C) based on a fair evaluation of all 
                material facts, the proposed labeling is false 
                or misleading in any particular; or
                    (D) such tobacco product is not shown to 
                conform in all respects to a tobacco product 
                standard in effect under section 907, and there 
                is a lack of adequate information to justify 
                the deviation from such standard.
            (3) Denial information.--Any denial of an 
        application shall, insofar as the Secretary determines 
        to be practicable, be accompanied by a statement 
        informing the applicant of the measures required to 
        remove such application from deniable form (which 
        measures may include further research by the applicant 
        in accordance with 1 or more protocols prescribed by 
        the Secretary).
            (4) Basis for finding.--For purposes of this 
        section, the finding as to whether the marketing of a 
        tobacco product for which an application has been 
        submitted is appropriate for the protection of the 
        public health shall be determined with respect to the 
        risks and benefits to the population as a whole, 
        including users and nonusers of the tobacco product, 
        and taking into account--
                    (A) the increased or decreased likelihood 
                that existing users of tobacco products will 
                stop using such products; and
                    (B) the increased or decreased likelihood 
                that those who do not use tobacco products will 
                start using such products.
            (5) Basis for action.--
                    (A) Investigations.--For purposes of 
                paragraph (2)(A), whether permitting a tobacco 
                product to be marketed would be appropriate for 
                the protection of the public health shall, when 
                appropriate, be determined on the basis of 
                well-controlled investigations, which may 
                include 1 or more clinical investigations by 
                experts qualified by training and experience to 
                evaluate the tobacco product.
                    (B) Other evidence.--If the Secretary 
                determines that there exists valid scientific 
                evidence (other than evidence derived from 
                investigations described in subparagraph (A)) 
                which is sufficient to evaluate the tobacco 
                product, the Secretary may authorize that the 
                determination for purposes of paragraph (2)(A) 
                be made on the basis of such evidence.
    (d) Withdrawal and Temporary Suspension.--
            (1) In general.--The Secretary shall, upon 
        obtaining, where appropriate, advice on scientific 
        matters from the Tobacco Products Scientific Advisory 
        Committee, and after due notice and opportunity for 
        informal hearing for a tobacco product for which an 
        order was issued under subsection (c)(1)(A)(i), issue 
        an order withdrawing the order if the Secretary finds--
                    (A) that the continued marketing of such 
                tobacco product no longer is appropriate for 
                the protection of the public health;
                    (B) that the application contained or was 
                accompanied by an untrue statement of a 
                material fact;
                    (C) that the applicant--
                            (i) has failed to establish a 
                        system for maintaining records, or has 
                        repeatedly or deliberately failed to 
                        maintain records or to make reports, 
                        required by an applicable regulation 
                        under section 909;
                            (ii) has refused to permit access 
                        to, or copying or verification of, such 
                        records as required by section 704; or
                            (iii) has not complied with the 
                        requirements of section 905;
                    (D) on the basis of new information before 
                the Secretary with respect to such tobacco 
                product, evaluated together with the evidence 
                before the Secretary when the application was 
                reviewed, that the methods used in, or the 
                facilities and controls used for, the 
                manufacture, processing, packing, or 
                installation of such tobacco product do not 
                conform with the requirements of section 906(e) 
                and were not brought into conformity with such 
                requirements within a reasonable time after 
                receipt of written notice from the Secretary of 
                nonconformity;
                    (E) on the basis of new information before 
                the Secretary, evaluated together with the 
                evidence before the Secretary when the 
                application was reviewed, that the labeling of 
                such tobacco product, based on a fair 
                evaluation of all material facts, is false or 
                misleading in any particular and was not 
                corrected within a reasonable time after 
                receipt of written notice from the Secretary of 
                such fact; or
                    (F) on the basis of new information before 
                the Secretary, evaluated together with the 
                evidence before the Secretary when such order 
                was issued, that such tobacco product is not 
                shown to conform in all respects to a tobacco 
                product standard which is in effect under 
                section 907, compliance with which was a 
                condition to the issuance of an order relating 
                to the application, and that there is a lack of 
                adequate information to justify the deviation 
                from such standard.
            (2) Appeal.--The holder of an application subject 
        to an order issued under paragraph (1) withdrawing an 
        order issued pursuant to subsection (c)(1)(A)(i) may, 
        by petition filed on or before the 30th day after the 
        date upon which such holder receives notice of such 
        withdrawal, obtain review thereof in accordance with 
        section 912.
            (3) Temporary suspension.--If, after providing an 
        opportunity for an informal hearing, the Secretary 
        determines there is reasonable probability that the 
        continuation of distribution of a tobacco product under 
        an order would cause serious, adverse health 
        consequences or death, that is greater than ordinarily 
        caused by tobacco products on the market, the Secretary 
        shall by order temporarily suspend the authority of the 
        manufacturer to market the product. If the Secretary 
        issues such an order, the Secretary shall proceed 
        expeditiously under paragraph (1) to withdraw such 
        application.
    (e) Service of Order.--An order issued by the Secretary 
under this section shall be served--
            (1) in person by any officer or employee of the 
        department designated by the Secretary; or
            (2) by mailing the order by registered mail or 
        certified mail addressed to the applicant at the 
        applicant's last known address in the records of the 
        Secretary.
    (f) Records.--
            (1) Additional information.--In the case of any 
        tobacco product for which an order issued pursuant to 
        subsection (c)(1)(A)(i) for an application filed under 
        subsection (b) is in effect, the applicant shall 
        establish and maintain such records, and make such 
        reports to the Secretary, as the Secretary may by 
        regulation, or by order with respect to such 
        application, prescribe on the basis of a finding that 
        such records and reports are necessary in order to 
        enable the Secretary to determine, or facilitate a 
        determination of, whether there is or may be grounds 
        for withdrawing or temporarily suspending such order.
            (2) Access to records.--Each person required under 
        this section to maintain records, and each person in 
        charge of custody thereof, shall, upon request of an 
        officer or employee designated by the Secretary, permit 
        such officer or employee at all reasonable times to 
        have access to and copy and verify such records.
    (g) Investigational Tobacco Product Exemption for 
Investigational Use.--The Secretary may exempt tobacco products 
intended for investigational use from the provisions of this 
chapter under such conditions as the Secretary may by 
regulation prescribe.

           *       *       *       *       *       *       *

                              ----------                              

              SECTION 1043 OF THE PRO-CHILDREN ACT OF 1994

SEC. 1043. NONSMOKING POLICY FOR CHILDREN'S SERVICES.

    (a) Prohibition.--After the date of the enactment of this 
Act, no person shall permit [smoking] smoking or use of vapor 
products within any indoor facility owned or leased or 
contracted for and utilized by such person for provision of 
routine or regular kindergarten, elementary, or secondary 
education or library services to children.
    (b) Additional Prohibition.--After the date of the 
enactment of this Act, no person shall permit [smoking] smoking 
or use of vapor products within any indoor facility (or portion 
thereof) owned or leased or contracted for by such person for 
the provision by such person of regular or routine health care 
or day care or early childhood development (Head Start) 
services to children or for the use of the employees of such 
person who provides such services, except that this subsection 
shall not apply to--
            (1) any portion of such facility that is used for 
        inpatient hospital treatment of individuals dependent 
        on, or addicted to, drugs or alcohol; and
            (2) any private residence.
    (c) Federal Agencies.--
            (1) Kindergarten, elementary, or secondary 
        education or library services.--After the date of the 
        enactment of this Act, no Federal agency shall permit 
        [smoking] smoking or use of vapor products within any 
        indoor facility in the United States operated by such 
        agency, directly or by contract, to provide routine or 
        regular kindergarten, elementary, or secondary 
        education or library services to children.
            (2) Health or day care or early childhood 
        development services.--After the date of the enactment 
        of this Act, no Federal agency shall permit [smoking] 
        smoking or use of vapor products within any indoor 
        facility (or portion thereof) operated by such agency, 
        directly or by contract, to provide routine or regular 
        health or day care or early childhood development (Head 
        Start) services to children, except that this paragraph 
        shall not apply to--
                    (A) any portion of such facility that is 
                used for inpatient hospital treatment of 
                individuals dependent on, or addicted to, drugs 
                or alcohol; and
                    (B) any private residence.
            (3) Application of provisions.--The provisions of 
        paragraph (2) shall also apply to the provision of such 
        routine or regular kindergarten, elementary or 
        secondary education or library services in the 
        facilities described in paragraph (2) not subject to 
        paragraph (1).
    (d) Notice.--The prohibitions in subsections (a) through 
(c) shall be incorporated by publication of a notice in the 
Federal Register by the Secretary (in consultation with the 
heads of other affected agencies) and by such agency heads in 
funding arrangements involving the provision of children's 
services administered by such heads. Such prohibitions shall be 
effective 90 days after such notice is published, or 270 days 
after the date of the enactment of this Act, whichever occurs 
first.
    (e) Special Waiver.--
            (1) In general.--On receipt of an application, the 
        head of the Federal agency may grant a special waiver 
        to a person described in subsection (a) who employs 
        individuals who are members of a labor organization and 
        provide children's services pursuant to a collective 
        bargaining agreement that--
                    (A) took effect before the date of the 
                enactment of this Act; and
                    (B) includes provisions relating to 
                [smoking] smoking or vapor product privileges 
                that are in violation of the requirements of 
                this section.
            (2) Termination of waiver.--A special waiver 
        granted under this subsection shall terminate on the 
        earlier of--
                    (A) the first expiration date (after the 
                date of the enactment of this Act) of the 
                collective bargaining agreement containing the 
                provisions relating to [smoking] smoking or 
                vapor product privileges; or
                    (B) the date that is 1 year after the date 
                of the enactment of this Act.
    (f) Civil Penalties.--
            (1) In general.--Any failure to comply with a 
        prohibition in this section shall be a violation of 
        this section and any person subject to such prohibition 
        who commits such violation may be liable to the United 
        States for a civil penalty in an amount not to exceed 
        $1,000 for each violation, or may be subject to an 
        administrative compliance order, or both, as determined 
        by the Secretary. Each day a violation continues shall 
        constitute a separate violation. In the case of any 
        civil penalty under this section, the total amount 
        shall not exceed the amount of Federal funds received 
        by such person for the fiscal year in which the 
        continuing violations occurred. For the purpose of the 
        prohibition in subsection (c), the term ``person'' 
        shall mean the head of the applicable Federal agency or 
        the contractor of such agency providing the services to 
        children.
            (2) Administrative proceeding.--A civil penalty may 
        be assessed in a written notice, or an administrative 
        compliance order may be issued, by the Secretary only 
        after an opportunity for a hearing in accordance with 
        section 554 of title 5. Before making such assessment 
        or issuing such order, or both, the Secretary shall 
        give written notice thereof to such person by certified 
        mail with return receipt and provide therein an 
        opportunity to request in writing not later than 30 
        days after the date of receipt of such notice such 
        hearing. The notice shall reasonably describe the 
        violation and be accompanied with the procedures for 
        such hearing and a simple form to request such hearing 
        if such person desires to use such form. If a hearing 
        is requested, the Secretary shall establish by such 
        certified notice the time and place for such hearing 
        which should be located, to the greatest extent 
        possible, at a location convenient to such person. The 
        Secretary (or the Secretary's designee) and such person 
        may consult to arrange a suitable date and location 
        where appropriate.
            (3) Circumstances affecting penalty or order.--In 
        determining the amount of the civil penalty or the 
        nature of the administrative compliance order, the 
        Secretary shall take into account, as appropriate--
                    (A) the nature, circumstances, extent, and 
                gravity of the violation;
                    (B) with respect to the violator, any good 
                faith efforts to comply, the importance of 
                achieving early and permanent compliance, the 
                ability to pay or comply, the effect of the 
                penalty or order on the ability to continue 
                operation, any prior history of the same kind 
                of violation, the degree of culpability, and 
                any demonstration of willingness to comply with 
                the prohibitions of this section in a timely 
                manner; and
                    (C) such other matters as justice may 
                require.
            (4) Modification.--The Secretary may, as 
        appropriate, compromise, modify, or remit, with or 
        without conditions, any civil penalty or administrative 
        compliance order. In the case of a civil penalty, the 
        amount, as finally determined by the Secretary or 
        agreed upon in compromise, may be deducted from any 
        sums that the United States or its agencies or 
        instrumentalities owes to the person against whom the 
        penalty is assessed.
            (5) Petition for review.--Any person aggrieved by a 
        penalty assessed or an order issued, or both, by the 
        Secretary under this section may file a petition for 
        judicial review thereof with the United States Court of 
        Appeals for the District of Columbia Circuit or for any 
        other circuit in which the person resides or transacts 
        business. Such person shall provide a copy thereof to 
        the Secretary or the Secretary's designee. The petition 
        shall be filed within 30 days after the Secretary's 
        assessment or order, or both, are final and have been 
        provided to such person by certified mail. The 
        Secretary shall promptly provide to the court a 
        certified copy of the transcript of any hearing held 
        under this section and a copy of the notice or order.
            (6) Failure to comply.--If a person fails to pay an 
        assessment of a civil penalty or comply with an order, 
        after either or both are final under this section, or 
        after a court under paragraph (5) has entered a final 
        judgment in favor of the Secretary, the Attorney 
        General, at the request of the Secretary, shall recover 
        the amount of the civil penalty (plus interest at then 
        currently prevailing rates from the day either or both 
        are final) or enforce the order in an action brought in 
        the appropriate district court of the United States. In 
        such action, the validity and appropriateness of the 
        penalty or order or the amount of the penalty shall not 
        be subject to review.

               CHANGES IN THE APPLICATION OF EXISTING LAW

    Pursuant to clause 3(f)(1)(A) of rule XIII of the Rules of 
the House of Representatives, the following statements are 
submitted describing the effect of provisions in the 
accompanying bill that directly or indirectly change the 
application of existing law.
    The bill includes a number of provisions which place 
limitations on the use of funds in the bill or change existing 
limitations and which might, under some circumstances, be 
construed as changing the application of existing law:
    1. Office of the Secretary.--Language is included to limit 
the amount of funds for official reception and representation 
expenses, as determined by the Secretary.
    2. Departmental Administration.--Language is included to 
reimburse the agency for travel expenses incident to the 
holding of hearings.
    3. Agricultural Research Service.--Language is included 
that allows the Agricultural Research Service to grant 
easements at the Beltsville, MD, agricultural research center 
and to grant easements at any facility for the construction of 
a research facility for use by the agency.
    4. Animal and Plant Health Inspection Service.--A provision 
carried in the bill since fiscal year 1973 regarding state 
matching funds has been continued to assure more effective 
operation of the brucellosis control program through state cost 
sharing, with resulting savings to the Federal budget.
    Language is included to allow APHIS to recoup expenses 
incurred from providing technical assistance goods, or services 
to non-APHIS personnel, and to allow transfers of funds for 
agricultural emergencies.
    Language is included to limit the amount of funds for 
representational allowances.
    5. Agricultural Marketing Service, Limitation on 
Administrative Expenses.--The bill includes language to allow 
AMS to exceed the limitation on administrative expenses by 10 
percent with notification to the Appropriations Committees. 
This allows flexibility in case crop size is understated and/or 
other uncontrollable events occur.
    6. Agricultural Marketing Service Inspection and Weighing 
Services.--The bill includes authority to exceed the limitation 
on inspection and weighing services by 10 percent with 
notification to the Appropriations Committees. This allows for 
flexibility if export activities require additional supervision 
and oversight, or other uncontrollable factors occur.
    7. Dairy Indemnity Program.--Language is included by 
reference that allows the Secretary to utilize the services of 
the Commodity Credit Corporation for the purpose of making 
dairy indemnity payments.
    8. Agricultural Credit Insurance Fund Program Account.--
Language is included that deems the pink bollworm a boll weevil 
for the purposes of administering the boll weevil loan program.
    9. Risk Management Agency.--Language is included to limit 
the amount of funds for official reception and representation 
expenses.
    10. Commodity Credit Corporation Fund.--Language is 
included to provide for the reimbursement appropriation. 
Language is also included to allow certain funds transferred 
from the Commodity Credit Corporation to be used for 
information resource management. In addition, language is 
included which limits the amount of funds that can be spent on 
operation and maintenance costs of CCC hazardous waste sites.
    11. Natural Resources Conservation Service.--Conservation 
Operations.--Language which has been included in the bill since 
1938 prohibits construction of buildings on land not owned by 
the government, although construction on land owned by states 
and counties is permitted as authorized by law.
    12. Rural Development Salaries and Expenses.--Language is 
included to allow funds to be used for advertising and 
promotional activities and to limit the amount of funds to 
provide modest nonmonetary awards to non-USDA employees.
    13. Rental Assistance Program.--Language is included which 
provides that agreements entered into during the current fiscal 
year be funded for a one-year period. Language also is included 
to renew contracts once during any 12-month period.
    14. Special Supplemental Nutrition Program for Women, 
Infants, and Children (WIC).--Language is included to purchase 
infant formula except in accordance with law and pay for 
activities that are not fully reimbursed by other departments 
or agencies unless authorized by law.
    15. Supplemental Nutrition Assistance Program.--Language is 
included to enter into contracts and employ staff to conduct 
studies, evaluations, or to conduct activities related to 
program integrity.
    16. Foreign Agricultural Service.--Language carried since 
1979 enables this agency to use funds received by an advance or 
by reimbursement to carry out its activities involving 
international development and technical cooperation. Language 
is included to limit the amount of funds for official reception 
and representation expenses.
    17. Commodity Futures Trading Commission.--Language is 
included to limit the amount of funds for official reception 
and representation expenses. Language that allows the 
Commission to record prior year lease obligations to correct a 
violation of the Anti-Deficiency Act.
    18. Farm Credit Administration.--The bill includes 
authority to exceed the limitation on assessments by 10 percent 
with notification to the Appropriations Committees.
    19. Office of Codex Alimentarius.--Language is included to 
limit the amount of funds for official reception and 
representation expenses.
    20. General Provisions.--
    Section 704: This provision provides that none of the funds 
in this Act may be made available to pay indirect costs charged 
against competitive agricultural research, education, or 
extension grants awarded by the National Institute of Food and 
Agriculture in excess of 10 percent of total direct costs.
    Section 705: This provision allows funds made available in 
the current fiscal year for the Rural Development Loan Fund 
program account; the Rural Electrification and 
Telecommunications Loans program account; and the Rural Housing 
Insurance Fund program account to remain available until 
expended to disburse obligations.
    Section 706: Language is included that requires approval of 
the Chief Information Officer and the concurrence of the 
Executive Information Technology Investment Review Board for 
acquisition of new information technology systems or 
significant upgrades, and that prohibits the transfer of funds 
to the Office of the Chief Information Officer without the 
notification of the Committees on Appropriations of both Houses 
of Congress.
    Section 707: Language is included regarding the 
availability of funds for certain conservation programs.
    Section 708: Language is included regarding certain Rural 
Utilities Service Programs.
    Section 709: Language is included that allows unobligated 
balances of the Farm Service Agency and Rural Development 
mission areas to be used for information technology purposes.
    Section 710: Language is included regarding the prohibition 
of first-class travel by the employees of agencies funded in 
this Act.
    Section 711: Language is included regarding the funds of 
the Commodity Credit Corporation.
    Section 712: Language is included that limits the amount of 
spending for USDA Advisory Committees.
    Section 713: Language is included regarding indirect costs 
for grants.
    Section 714: Language regarding IT systems regulation.
    Section 715: Language regarding Section 32 activities.
    Section 716: Language is included that prohibits funds from 
being used to prepare a budget submission to Congress that 
assumes reductions from the previous year's budget due to user 
fee proposals unless the submission also identifies spending 
reductions which should occur if the user fees are not enacted.
    Section 717: Language is included that requires certain 
reprogramming procedures of funds provided in Appropriations 
Acts.
    Section 718: Language is included regarding fees for the 
business and industry guaranteed loan program.
    Section 719: This provision prohibits the Department of 
Agriculture or the Food and Drug Administration from 
transmitting or making available to any non-Department of 
Agriculture or non-Department of Health and Human Services 
employee questions or responses to questions that are a result 
of information requested for the appropriations hearing 
process.
    Section 720: Language regarding prepackaged news stories.
    Section 721: This provision prohibits any employee of the 
Department of Agriculture from being detailed or assigned to 
any other agency or office of the Department for more than 60 
days unless the individual's employing agency or office is 
fully reimbursed by the receiving agency or office for the 
salary and expenses of the employee for the period of 
assignment.
    Section 722: Language requiring spending plans.
    Section 723: Language regarding certain unobligated 
balances.
    Section 724: Language is included regarding the Single 
Family Housing Direct Loan Program.
    Section 725: Language is included on certain USDA loan 
programs.
    Section 726: Language is included regarding the Working 
Capital Fund.
    Section 727: Language is included regarding purchases made 
through child nutrition programs.
    Section 728: Language is included regarding water and waste 
disposal sanitation loans.
    Section 729: Language is included regarding the Agriculture 
and Food Research Institute.
    Section 730: Language is included regarding rural loan 
programs.
    Section 731: Language is included regarding disclosure of 
information for pharmaceuticals.
    Section 732: Language regarding genetic modification.
    Section 733: Language regarding beverage production 
process.
    Section 734: Language regarding emergency food aid.
    Section 735: Language regarding Rural Utility Service.
    Section 736: Language regarding meat and poultry 
regulation.
    Section 737: Language regarding research and evaluation 
plan.
    Section 738: Language regarding the Commodity Exchange Act.
    Section 739: Language regarding audits.
    Section 740: Language regarding FDA regulations.
    Section 741: Language regarding animal research.
    Section 742: Language regarding the Food Security Act.
    Section 743: Language regarding domestic preference.
    Section 744: Language regarding community eligibility.
    Section 745: Language regarding lobbying.
    Section 746: Language regarding office operations.
    Section 747: Language regarding housing programs.
    Section 748: Language regarding child nutrition programs.
    Section 749: Language regarding community eligibility.
    Section 750: Language regarding community eligibility.
    Section 751: Language regarding poultry products.
    Section 752: Language regarding FDA regulation.
    Section 753: Language regarding fund access.
    Section 754: Language regarding the citrus greening.
    Section 755: Language regarding the FDA regulation.
    Section 756: Language regarding geographic areas.
    Section 757: Language regarding child nutrition.
    Section 758: Language regarding the veteran farming.
    Section 759: Language regarding broadband expansion.
    Section 760: Language regarding cost-benefit analysis.
    Section 761: Language regarding biomass crop assistance 
program.
    Section 762: Language regarding FDA regulation.
    Section 763: Language regarding dietary guidelines.
    Section 764: Language regarding food labeling.
    Section 765: Language regarding the availability of funds.
    Section 766: Language regarding genetically engineered 
labeling.
    Section 767: Language regarding the school breakfast 
program.
    Section 768: Language regarding the SNAP program.
    Section 769: Language regarding premium cigars.
    Section 770: Language regarding cigars.
    Section 771: Language regarding the Federal Food, Drug, and 
Cosmetic Act.
    Section 772: Language regarding tobacco product standards.
    Section 773: Language regarding the labeling of tobacco 
products.
    Section 774: Language regarding tobacco regulation.
    Section 775: Language regarding age verification of tobacco 
purchases.
    Section 776: Language regarding a report.
    Section 777: Language regarding a report.

                  APPROPRIATIONS NOT AUTHORIZED BY LAW

    Pursuant to clause 3(f)(1)(B) of rule XIII of the Rules of 
the House of Representatives, the following table lists the 
appropriations in the accompanying bill which are not 
authorized by law for the period concerned:

----------------------------------------------------------------------------------------------------------------
                                                                              Appropriation in
                Agency/program                   Last year of  Authorization     last year of    Appropriations
                                                authorization      level        authorization     in  this bill
----------------------------------------------------------------------------------------------------------------
CFTC..........................................        2013        Such sums        205,000,000       255,000,000
Farmers' Market Nutrition Program.............        2015        Such sums         16,548,000        18,548,000
State Administrative Expenses.................        2015        Such sums        263,686,000       302,906,000
Summer Food Service Program...................        2015        Such sums        495,521,000       519,461,000
WIC...........................................        2015        Such sums      6,623,000,000     6,000,000,000
Multi-Family Revitalization Program...........        2016        Such sums         41,400,000        53,000,000
Broadband Telecommunications Grants...........        2016        Such sums         34,500,000        30,000,000
----------------------------------------------------------------------------------------------------------------

                 COMPARISON WITH THE BUDGET RESOLUTION

    Pursuant to clause 3(c)(2) of rule XIII of the Rules of the 
House of Representatives and section 308(a)(1)(A) of the 
Congressional Budget Act of 1974, the following table compares 
the levels of new budget authority provided in the bill with 
the appropriate allocation under section 302(b) of the Budget 
Act:

                                            [In millions of dollars]
----------------------------------------------------------------------------------------------------------------
                                                        302(b) Allocation                  This bill
                                                   -------------------------------------------------------------
                                                       Budget                      Budget
                                                     authority     Outlays        authority          Outlays
----------------------------------------------------------------------------------------------------------------
Comparison of amounts in the bill with Committee
 allocations to its subcommittees: Subcommittee on
 Agriculture, Rural Development, Food and Drug
 Administration, and Related Agencies.
    Mandatory.....................................            0            0            40,695         \1\35,345
    Discretionary.................................            0            0            23,242            24,677
----------------------------------------------------------------------------------------------------------------
\1\Includes outlays from prior-year budget authority.

                      FIVE-YEAR OUTLAY PROJECTIONS

    Pursuant to clause 3(c)(2) of rule XIII and section 
308(a)(1)(B) of the Congressional Budget Act of 1974, the 
following table contains five-year projections associated with 
the budget authority provided in the accompanying bill as 
provided to the Committee by the Congressional Budget Office:

                                            [In millions of dollars]
----------------------------------------------------------------------------------------------------------------
                                                        302(b) Allocation                  This bill
                                                   -------------------------------------------------------------
                                                       Budget                      Budget
                                                     authority     Outlays        authority          Outlays
----------------------------------------------------------------------------------------------------------------
Projection of outlays associated with the
 recommendation:
    2019..........................................          n.a          n.a               n.a         \1\41,393
    2020..........................................          n.a          n.a               n.a             6,159
    2021..........................................          n.a          n.a               n.a             1,399
    2022..........................................          n.a          n.a               n.a               745
    2023 and future years.........................          n.a          n.a               n.a               466
----------------------------------------------------------------------------------------------------------------
\1\Excludes outlays from prior-year budget authority.

               ASSISTANCE TO STATE AND LOCAL GOVERNMENTS

    Pursuant to clause 3(c)(2) of rule XIII and section 
308(a)(1)(C) of the Congressional Budget Act of 1974, the 
Congressional Budget Office has provided the following 
estimates of the amounts of financial assistance to State and 
local governments is as follows:

                                            [In millions of dollars]
----------------------------------------------------------------------------------------------------------------
                                                        302(b) Allocation                  This bill
                                                   -------------------------------------------------------------
                                                       Budget                      Budget
                                                     authority     Outlays        authority          Outlays
----------------------------------------------------------------------------------------------------------------
Financial assistance to State and local                     n.a          n.a            40,171         \1\24,463
 governments for 2018.............................
----------------------------------------------------------------------------------------------------------------
\1\Excludes outlays from prior-year budget authority.

                          PROGRAM DUPLICATION

    No provision of this bill establishes or reauthorizes a 
program of the Federal Government known to be duplicative of 
another Federal program, a program that was included in any 
report from the GAO to Congress pursuant to section 21 of 
Public Law 111-139, or a program related to a program 
identified in the most recent Catalog of Federal Domestic 
Assistance.

                          DIRECTED RULE MAKING

    Pursuant to section 3(i) of H. Res. 5 (115th Congress), the 
bill includes the following directed rule makings:
          Sec. 727 (SNAP)
          Sec. 736 (FSIS)
          Sec. 751 (FSIS)
          Sec. 772 (FDA)
          Sec. 773 (FDA).

                    Table of Funding Recommendations

    The following table provides the amounts recommended by the 
Committee compared with the budget estimates by account.

 MINORITY VIEWS OF THE HON. NITA LOWEY AND THE HON. SANFORD D. BISHOP, 
                                  JR.

    The FY2019 Agriculture, Rural Development, Food and Drug 
Administration, and Related Agencies Appropriations bill would 
provide a slight increase of $14 million above the 2018 enacted 
level. With this funding level, the bill addresses many of our 
priorities, such as domestic nutrition and rural development 
programs. We also appreciate the committee's adoption of Rep. 
Lee's amendment to increase funding for the Healthy Food 
Financing Initiative by $1 million.
    However, we are very disappointed that the bill is $216 
million short of the 2018 level in the Food for Peace program 
and that there was no increase for the McGovern-Dole 
International Food for Education and Child Nutrition Program.
    Another deep disappointment is the tiny increase for the 
Commodity Futures Trading Commission (CFTC) after the 
Commission's budget was held flat for three years and then cut 
in 2018. This is why Mr. Bishop offered an amendment in full 
committee to increase the agency's funding level to $267 
million. We regret that the amendment was not adopted.
    The CFTC needs more money. A recent article in the Wall 
Street Journal described how CFTC is seeking to borrow 
economists and cyber-security experts from other agencies and 
how it cannot synchronize its market data with other federal 
regulators because it cannot afford the necessary technology. 
This is absurd.
    We also regret the Committee's failure to adopt Rep. 
Roybal-Allard's amendment to prohibit the inspection of horses 
for slaughter for human food. There are far more humane ways to 
deal with unwanted horses, and the past experience in this 
country of slaughtering horses for human food was, frankly, a 
disaster.
    We are puzzled as to why the Committee rejected Rep. 
DeLauro's amendment to strike new language in the bill that 
would permanently give the Department of Agriculture regulatory 
responsibility over ``cultured meat,'' which is produced from 
the cells of animals, rather than from slaughter. There is no 
need to make this decision now as such products are not 
commercially available. Determining how and by whom such a 
product may be regulated is far beyond the scope of a single 
appropriations bill.
    We appreciate the WIC funding in the bill, which we believe 
is sufficient to meet the need in 2019, based on current 
estimates. We do want to note that it would be wise, in the 
2019 funding bill, to increase the reserve fund, which is 
currently at $150 million, while monthly expenditures in the 
program are expected to average more than $450 million in 2019. 
Even modest changes in participation or food costs could 
quickly exhaust the reserve fund and leave low-income mothers 
and children without access to the nutrition they need.
    As the legislative process continues, we will do our best 
to address the concerns described here. However, Democrats' 
largest concern is the entire budget outlook and how other 
government agencies will be shortchanged.
    The Bipartisan Budget Act enacted earlier this year 
provided relief from unworkable discretionary spending caps. 
The agreement was supposed to provide the country with 
stability following a year of shutdowns, last-minute veto 
threats, and general uncertainty in government. That stability 
lasted long enough for Congress to pass a bipartisan Omnibus 
appropriations bill for FY 2018 and then Republican chaos 
reigned again. The President threatened to veto the bill, 
unhappy with Congress' large investments in programs to help 
low- and middle-income Americans and rejection of his campaign-
promised border wall.
    Even after the President backed off his threat and signed 
the bill, the Administration and Republican leadership in 
Congress, many of whom voted for the Bipartisan Budget Act and 
the Omnibus, have continued to attempt to undo those bipartisan 
agreements. Now, the majority is seeking to pass a rescissions 
bill to undo funding and mollify an angry President. We have 
been told by OMB Director Mick Mulvaney that this is the first 
of many rescission packages meant to bring spending in line 
with the President's priorities, ignoring Congressional action 
that dismissed the President's FY 2017 and FY 2018 draconian 
budget requets.
    In addition to the unacceptable rescissions proposals, the 
majority's lack of transparency with regards to how it will 
allocate the FY 2019 discretionary budget also endangers future 
bipartisan compromise. The majority has abandoned longstanding 
committee practice to provide the Members and the public with a 
budget blueprint for domestic spending, known as 302(b) 
allocations. Members are forced to vote on bills without the 
full picture on the impact of each bill on other bills, like 
those that invest in education, job training and creation, 
health care, consumer protection, and other top priorities for 
American families. Democrats can only be left to assume that 
the majority is siphoning money from bills at the end of the 
process that are important to economic growth and the safety, 
security, and well-being of our families.

                                   Nita M. Lowey.
                                   Sanford D. Bishop, Jr.

               ADDITIONAL VIEWS OF THE HON. NITA M. LOWEY

    I am very concerned by the inclusion of the Cole-Bishop 
amendment, which would significantly weaken FDA's authority to 
regulate tobacco products. The Tobacco Control Act (TCA), which 
passed Congress with broad bipartisan support, provided FDA 
with the authority to review new tobacco products. Since 
enactment, tobacco products including e-cigarettes and flavored 
cigars have made significant gains in popularity, particularly 
among youth.
    According to the CDC, e-cigarette use among teens has risen 
tenfold in the past decade, rising to 16% of teens in 2015, an 
estimated three million American teens. E-cigarettes are now 
more popular among teens than traditional cigarettes. In 
addition, high school boys now smoke cigars at a higher rate 
than cigarettes. Every day, about 2,700 kids will try a cigar 
for the first time. Cigars have serious health consequences 
including cancer of the mouth, throat, and lung. Congress 
should do all it can to prevent youth access and ensure FDA has 
the authority to regulate tobacco products, not create 
additional loopholes for tobacco companies to exploit to get 
Americans hooked.
    That is why I am particularly troubled by the Cole-Bishop 
amendment, which would remove FDA authority over so-called 
premium cigars, including machine made cigars sold for as 
little as $1.00; grandfather in many of the candy-flavored 
cigars and cigarillos that came onto the market after flavored 
cigarettes were banned in 2009; make it easier--not harder--for 
e-cigarettes including JUUL to make it to market without 
premarket review; create a new, artificial deadline for review 
which could jeopardize FDA's legal and regulatory cases against 
the tobacco industry; and impose weaker warning labels on 
tobacco products rather than the carefully studied warning 
labels FDA has approved and will enforce later this year.
    And while I appreciate the effort to reduce youth access, 
in particular ensuring that e-cigarettes would be prohibited in 
child care centers, schools, and other smoke free locations 
that receive federal funds, many actions intended to address 
youth access in this amendment are duplicative of existing FDA 
actions and enforcement authorities. In short, the benefits are 
vastly outweighed by the harm.
    This amendment provides false comfort to those concerned 
about youth access. It is a major re-write of the Tobacco 
Control Act, presented before the Committee without the 
consideration of the authorizers, the public health community, 
or thorough discussions with FDA. An new actions on youth 
access should be in addition to, not in place of, current FDA 
review standards.
    Major public health groups, including the American Cancer 
Society, American Thoracic Society, American Lung Association, 
American Medical Association, American Academy of Pediatrics, 
and the Campaign for Tobacco Free Kids have opposed any effort 
to weaken or delay FDA's authority to regulate all tobacco 
products, including cigars and e-cigarettes.
    The American people trust FDA to evaluate the data and make 
unbiased decisions about product safety. The Fiscal Year 2019 
Agriculture Appropriations bill should not politicize the 
science or take aim at the FDA's ability to regulate tobacco 
products under the TCA.
                                   Nita M. Lowey.

                                  [all]
```