```

[106th Congress Public Law 224]
[From the U.S. Government Printing Office]

<DOC>
[DOCID: f:publ224.106]

[[Page 357]]

                       AGRICULTURE RISK PROTECTION

                               ACT OF 2000

[[Page 114 STAT. 358]]

Public Law 106-224
106th Congress

                                 An Act

 
To amend the Federal Crop Insurance Act to strengthen the safety net for 
 agricultural producers by providing greater access to more affordable 
risk management tools and improved protection from production and income 
   loss, to improve the efficiency and integrity of the Federal crop 
       insurance program. <<NOTE: June 20, 2000 -  [H.R. 2559]>> 

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress <<NOTE: Agricultural Risk 
Protection Act of 2000.>> assembled,

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short <<NOTE: 7 USC 1501 note.>> Title.--This Act may be cited 
as the ``Agricultural Risk Protection Act of 2000''.

    (b) Table of Contents.--The table of contents of this Act is as 
follows:

                    TITLE I--CROP INSURANCE COVERAGE

                   Subtitle A--Crop Insurance Coverage

Sec. 101. Premium schedule for additional coverage.
Sec. 102. Premium schedule for other plans of insurance.
Sec. 103. Catastrophic risk protection.
Sec. 104. Administrative fee for additional coverage.
Sec. 105. Assigned yields and actual production history adjustments.
Sec. 106. Review and adjustment in rating methodologies.
Sec. 107. Quality adjustment.
Sec. 108. Double insurance and prevented planting.
Sec. 109. Noninsured crop disaster assistance program.

                 Subtitle B--Improving Program Integrity

Sec. 121. Improving program compliance and integrity.
Sec. 122. Protection of confidential information.
Sec. 123. Good farming practices.
Sec. 124. Records and reporting.

                 Subtitle C--Research and Pilot Programs

Sec. 131. Research and development.
Sec. 132. Pilot programs.
Sec. 133. Education and risk management assistance.
Sec. 134. Options pilot program.

                       Subtitle D--Administration

Sec. 141. Relation to other laws.
Sec. 142. Management of Corporation.
Sec. 143. Contracting for rating of plans of insurance.
Sec. 144. Electronic availability of crop insurance information.
Sec. 145. Adequate coverage for States.
Sec. 146. Submission of policies and materials to Board.
Sec. 147. Funding.
Sec. 148. Standard Reinsurance Agreement.

                        Subtitle E--Miscellaneous

Sec. 161. Limitation on revenue coverage for potatoes.
Sec. 162. Crop insurance coverage for cotton and rice.

[[Page 114 STAT. 359]]

Sec. 163. Indemnity payments for certain producers.
Sec. 164. Sense of the Congress regarding the Federal crop insurance 
           program.
Sec. 165. Sense of the Congress on rural America, including minority and 
           limited-resource farmers.

             Subtitle F--Effective Dates and Implementation

Sec. 171. Effective dates.
Sec. 172. Regulations.
Sec. 173. Savings clause.

                    TITLE II--AGRICULTURAL ASSISTANCE

                   Subtitle A--Market Loss Assistance

Sec. 201. Market loss assistance.
Sec. 202. Oilseeds.
Sec. 203. Specialty crops.
Sec. 204. Other commodities.
Sec. 205. Payments in lieu of loan deficiency payments.
Sec. 206. Expansion of producers eligible for loan deficiency payments.

                        Subtitle B--Conservation

Sec. 211. Conservation assistance.
Sec. 212. Condition on development of Little Darby National Wildlife 
           Refuge, Ohio.

                          Subtitle C--Research

Sec. 221. Carbon cycle research.
Sec. 222. Tobacco research for medicinal purposes.
Sec. 223. Research on soil science and forest health management.
Sec. 224. Research on waste streams from livestock production.
Sec. 225. Improved storage and management of livestock and poultry 
           waste.
Sec. 226. Ethanol research pilot plant.
Sec. 227. Bioinformatics Institute for Model Plant Species.

                   Subtitle D--Agricultural Marketing

Sec. 231. Value-added agricultural product market development grants.

                     Subtitle E--Nutrition Programs

Sec. 241. Calculation of minimum amount of commodities for school lunch 
           requirements.
Sec. 242. School lunch data.
Sec. 243. Child and adult care food program integrity.
Sec. 244. Adjustments to WIC program.

                       Subtitle F--Other Programs

Sec. 251. Authority to provide loan in connection with boll weevil 
           eradication.
Sec. 252. Animal disease control.
Sec. 253. Emergency loans for seed producers.
Sec. 254. Temporary suspension of authority to combine certain offices.
Sec. 255. Farm operating loan eligibility.
Sec. 256. Water systems for rural and Native villages in Alaska.
Sec. 257. Crop and pasture flood compensation program.
Sec. 258. Flood mitigation near Pierre, South Dakota.
Sec. 259. Restoration of eligibility for crop loss assistance.

                       Subtitle G--Administration

Sec. 261. Funding.
Sec. 262. Obligation period.
Sec. 263. Regulations.
Sec. 264. Paygo adjustment.
Sec. 265. Commodity Credit Corporation reimbursement.

         TITLE III--BIOMASS RESEARCH AND DEVELOPMENT ACT OF 2000

Sec. 301. Short title.
Sec. 302. Findings.
Sec. 303. Definitions.
Sec. 304. Cooperation and coordination in biomass research and 
           development.
Sec. 305. Biomass Research and Development Board.
Sec. 306. Biomass Research and Development Technical Advisory Committee.
Sec. 307. Biomass Research And Development Initiative.
Sec. 308. Administrative support and funds.

[[Page 114 STAT. 360]]

Sec. 309. Reports.
Sec. 310. Termination of authority.

                     TITLE IV--PLANT PROTECTION ACT

Sec. 401. Short title.
Sec. 402. Findings.
Sec. 403. Definitions.

                      Subtitle A--Plant Protection

Sec. 411. Regulation of movement of plant pests.
Sec. 412. Regulation of movement of plants, plant products, biological 
           control 
           organisms, noxious weeds, articles, and means of conveyance.
Sec. 413. Notification and holding requirements upon arrival.
Sec. 414. General remedial measures for new plant pests and noxious 
           weeds.
Sec. 415. Declaration of extraordinary emergency and resulting 
           authorities.
Sec. 416. Recovery of compensation for unauthorized activities.
Sec. 417. Control of grasshoppers and mormon crickets.
Sec. 418. Certification for exports.

                 Subtitle B--Inspection and Enforcement

Sec. 421. Inspections, seizures, and warrants.
Sec. 422. Collection of information.
Sec. 423. Subpoena authority.
Sec. 424. Penalties for violation.
Sec. 425. Enforcement actions of Attorney General.
Sec. 426. Court jurisdiction.

                  Subtitle C--Miscellaneous Provisions

Sec. 431. Cooperation.
Sec. 432. Buildings, land, people, claims, and agreements.
Sec. 433. Reimbursable agreements.
Sec. 434. Regulations and orders.
Sec. 435. Protection for mail handlers.
Sec. 436. Preemption.
Sec. 437. Severability.
Sec. 438. Repeal of superseded laws.

               Subtitle D--Authorization of Appropriations

Sec. 441. Authorization of appropriations.
Sec. 442. Transfer authority.

                       TITLE V--INSPECTION ANIMALS

Sec. 501. Civil penalty.
Sec. 502. Subpoena authority.

                         TITLE I--CROP INSURANCE

                   Subtitle A--Crop Insurance Coverage

SEC. 101. PREMIUM SCHEDULE FOR ADDITIONAL COVERAGE.

    (a) Expected Market Price.--Section 508(c) of the Federal Crop 
Insurance Act (7 U.S.C. 1508(c)) is amended by striking paragraph (5) 
and inserting the following:
            ``(5) Expected market price.--
                    ``(A) Establishment or approval.--For the purposes 
                of this title, the Corporation shall establish or 
                approve the price level (referred to in this title as 
                the `expected market price') of each agricultural 
                commodity for which insurance is offered.
                    ``(B) General rule.--Except as otherwise provided in 
                subparagraph (C), the expected market price of an 
                agricultural commodity shall be not less than the 
                projected market price of the agricultural commodity, as 
                determined by the Corporation.

[[Page 114 STAT. 361]]

                    ``(C) Other authorized approaches.--The expected 
                market price of an agricultural commodity--
                          ``(i) may be based on the actual market price 
                      of the agricultural commodity at the time of 
                      harvest, as determined by the Corporation;
                          ``(ii) in the case of revenue and other 
                      similar plans of insurance, may be the actual 
                      market price of the agricultural commodity, as 
                      determined by the Corporation;
                          ``(iii) in the case of cost of production or 
                      similar plans of insurance, shall be the projected 
                      cost of producing the agricultural commodity, as 
                      determined by the Corporation; or
                          ``(iv) in the case of other plans of 
                      insurance, may be an appropriate amount, as 
                      determined by the Corporation.''.

    (b) Premium Amounts.--Section 508(d) of the Federal Crop Insurance 
Act (7 U.S.C. 1508(d)) is amended--
            (1) in paragraph (2), by striking subparagraphs (B) and (C) 
        and inserting the following:
                    ``(B) In the case of additional coverage equal to or 
                greater than 50 percent of the recorded or appraised 
                average yield indemnified at not greater than 100 
                percent of the expected market price, or a comparable 
                coverage for a policy or plan of insurance that is not 
                based on individual yield, the amount of the premium 
                shall--
                          ``(i) be sufficient to cover anticipated 
                      losses and a reasonable reserve; and
                          ``(ii) include an amount for operating and 
                      administrative expenses, as determined by the 
                      Corporation, on an industry-wide basis as a 
                      percentage of the amount of the premium used to 
                      define loss ratio.''; and
            (2) by adding at the end the following:
            ``(3) Performance-based discount.--The Corporation may 
        provide a performance-based premium discount for a producer of 
        an agricultural commodity who has good insurance or production 
        experience relative to other producers of that agricultural 
        commodity in the same area, as determined by the Corporation.''.

    (c) Payment Schedule.--Section 508(e)(2) of the Federal Crop 
Insurance Act (7 U.S.C. 1508(e)(2)) is amended--
            (1) in the matter preceding the subparagraphs, by striking 
        ``The amount'' and inserting ``Subject to paragraph (4), the 
        amount''; and
            (2) by striking subparagraphs (B) and (C) and inserting the 
        following:
                    ``(B) In the case of additional coverage equal to or 
                greater than 50 percent, but less than 55 percent, of 
                the recorded or appraised average yield indemnified at 
                not greater than 100 percent of the expected market 
                price, or a comparable coverage for a policy or plan of 
                insurance that is not based on individual yield, the 
                amount shall be equal to the sum of--
                          ``(i) 67 percent of the amount of the premium 
                      established under subsection (d)(2)(B)(i) for the 
                      coverage level selected; and

[[Page 114 STAT. 362]]

                          ``(ii) the amount determined under subsection 
                      (d)(2)(B)(ii) for the coverage level selected to 
                      cover operating and administrative expenses.
                    ``(C) In the case of additional coverage equal to or 
                greater than 55 percent, but less than 65 percent, of 
                the recorded or appraised average yield indemnified at 
                not greater than 100 percent of the expected market 
                price, or a comparable coverage for a policy or plan of 
                insurance that is not based on individual yield, the 
                amount shall be equal to the sum of--
                          ``(i) 64 percent of the amount of the premium 
                      established under subsection (d)(2)(B)(i) for the 
                      coverage level selected; and
                          ``(ii) the amount determined under subsection 
                      (d)(2)(B)(ii) for the coverage level selected to 
                      cover operating and administrative expenses.
                    ``(D) In the case of additional coverage equal to or 
                greater than 65 percent, but less than 75 percent, of 
                the recorded or appraised average yield indemnified at 
                not greater than 100 percent of the expected market 
                price, or a comparable coverage for a policy or plan of 
                insurance that is not based on individual yield, the 
                amount shall be equal to the sum of--
                          ``(i) 59 percent of the amount of the premium 
                      established under subsection (d)(2)(B)(i) for the 
                      coverage level selected; and
                          ``(ii) the amount determined under subsection 
                      (d)(2)(B)(ii) for the coverage level selected to 
                      cover operating and administrative expenses.
                    ``(E) In the case of additional coverage equal to or 
                greater than 75 percent, but less than 80 percent, of 
                the recorded or appraised average yield indemnified at 
                not greater than 100 percent of the expected market 
                price, or a comparable coverage for a policy or plan of 
                insurance that is not based on individual yield, the 
                amount shall be equal to the sum of--
                          ``(i) 55 percent of the amount of the premium 
                      established under subsection (d)(2)(B)(i) for the 
                      coverage level selected; and
                          ``(ii) the amount determined under subsection 
                      (d)(2)(B)(ii) for the coverage level selected to 
                      cover operating and administrative expenses.
                    ``(F) In the case of additional coverage equal to or 
                greater than 80 percent, but less than 85 percent, of 
                the recorded or appraised average yield indemnified at 
                not greater than 100 percent of the expected market 
                price, or a comparable coverage for a policy or plan of 
                insurance that is not based on individual yield, the 
                amount shall be equal to the sum of--
                          ``(i) 48 percent of the amount of the premium 
                      established under subsection (d)(2)(B)(i) for the 
                      coverage level selected; and
                          ``(ii) the amount determined under subsection 
                      (d)(2)(B)(ii) for the coverage level selected to 
                      cover operating and administrative expenses.
                    ``(G) Subject to subsection (c)(4), in the case of 
                additional coverage equal to or greater than 85 percent 
                of

[[Page 114 STAT. 363]]

                the recorded or appraised average yield indemnified at 
                not greater than 100 percent of the expected market 
                price, or a comparable coverage for a policy or plan of 
                insurance that is not based on individual yield, the 
                amount shall be equal to the sum of--
                          ``(i) 38 percent of the amount of the premium 
                      established under subsection (d)(2)(B)(i) for the 
                      coverage level selected; and
                          ``(ii) the amount determined under subsection 
                      (d)(2)(B)(ii) for the coverage level selected to 
                      cover operating and administrative expenses.''.

    (d) Temporary Prohibition on Continuous Coverage.--Section 508(e) of 
the Federal Crop Insurance Act (7 U.S.C. 1508(e)) is amended by striking 
paragraph (4) and inserting the following:
            ``(4) Temporary prohibition on continuous coverage.--
        Notwithstanding paragraph (2), during each of the 2001 through 
        2005 reinsurance years, additional coverage under subsection (c) 
        shall be available only in 5 percent increments beginning at 50 
        percent of the recorded or appraised average yield.''.

    (e) Premium Payment Disclosure.--Section 508(e) of the Federal Crop 
Insurance Act (7 U.S.C. 1508(e)) is amended by adding at the end the 
following:
            ``(5) Premium payment disclosure.--Each policy or plan of 
        insurance under this title shall prominently indicate the dollar 
        amount of the portion of the premium paid by the Corporation.''.

    (f ) Conforming Amendment.--Section 508(g)(2)(D) of the Federal Crop 
Insurance Act (7 U.S.C. 1508(g)(2)(D)) is amended by striking ``(as 
provided in subsection (e)(4))''.

SEC. 102. PREMIUM SCHEDULE FOR OTHER PLANS OF INSURANCE.

    (a) Premium Schedule.--Section 508(h) of the Federal Crop Insurance 
Act (7 U.S.C. 1508(h)) is amended--
            (1) in paragraph (2), by striking the second sentence; and
            (2) by striking paragraph (5) and inserting the following:
            ``(5) Premium schedule.--
                    ``(A) Payment by corporation.--In the case of a 
                policy or plan of insurance developed and approved under 
                this subsection or section 522, or conducted under 
                section 523 (other than a policy or plan of insurance 
                applicable to livestock), the Corporation shall pay a 
                portion of the premium of the policy or plan of 
                insurance that is equal to--
                          ``(i) the percentage, specified in subsection 
                      (e) for a similar level of coverage, of the total 
                      amount of the premium used to define loss ratio; 
                      and
                          ``(ii) an amount for administrative and 
                      operating expenses determined in accordance with 
                      subsection (k)(4).
                    ``(B) Transitional schedule.--Effective only during 
                the 2001 reinsurance year, in the case of a policy or 
                plan of insurance developed and approved under this 
                subsection or section 522, or conducted under section 
                523 (other than a policy or plan of insurance applicable 
                to livestock), and first approved by the Board after the 
                date of the enactment of this subparagraph, the payment 
                by the Corporation of

[[Page 114 STAT. 364]]

                a portion of the premium of the policy may not exceed 
                the dollar amount that would otherwise be authorized 
                under subsection (e) (consistent with subsection (c)(5), 
                as in effect on the day before the date of the enactment 
                of this subparagraph).''.

    (b) Reimbursement Rate.--Section 508(k)(4) of the Federal Crop 
Insurance Act (7 U.S.C. 1508(k)(4)) is amended by adding at the end the 
following:
                    ``(C) Other reductions.--Beginning with the 2002 
                reinsurance year, in the case of a policy or plan of 
                insurance approved by the Board that was not reinsured 
                during the 1998 reinsurance year but, had it been 
                reinsured, would have received a reduced rate of 
                reimbursement during the 1998 reinsurance year, the rate 
                of reimbursement for administrative and operating costs 
                established for the policy or plan of insurance shall 
                take into account the factors used to determine the rate 
                of reimbursement for administrative and operating costs 
                during the 1998 reinsurance year, including the expected 
                difference in premium and actual administrative and 
                operating costs of the policy or plan of insurance 
                relative to an individual yield policy or plan of 
                insurance and other appropriate factors, as determined 
                by the Corporation.''.

SEC. 103. CATASTROPHIC RISK PROTECTION.

    (a) Alternative Coverage.--Section 508(b) of the Federal Crop 
Insurance Act (7 U.S.C. 1508(b)) is amended by striking paragraph (3) 
and inserting the following:
            ``(3) Alternative catastrophic coverage.--Beginning with the 
        2001 crop year, the Corporation shall offer producers of an 
        agricultural commodity the option of selecting either of the 
        following:
                    ``(A) The catastrophic risk protection coverage 
                available under paragraph (2)(A).
                    ``(B) An alternative catastrophic risk protection 
                coverage that--
                          ``(i) indemnifies the producer on an area 
                      yield and loss basis if such a policy or plan of 
                      insurance is offered for the agricultural 
                      commodity in the county in which the farm is 
                      located;
                          ``(ii) provides, on a uniform national basis, 
                      a higher combination of yield and price protection 
                      than the coverage available under paragraph 
                      (2)(A); and
                          ``(iii) the Corporation determines is 
                      comparable to the coverage available under 
                      paragraph (2)(A) for purposes of subsection 
                      (e)(2)(A).''.

    (b) Administrative Fee.--
            (1) Revised fee.--Section 508(b)(5) of the Federal Crop 
        Insurance Act (7 U.S.C. 1508(b)(5)) is amended--
                    (A) in subparagraph (A), by striking ``$50'' and 
                inserting ``$100'';
                    (B) by striking subparagraph (B); and
                    (C) in subparagraph (C), by striking ``amounts 
                required under subparagraphs (A) and (B)'' and inserting 
                ``administrative fee required by this paragraph''.
            (2) Conforming amendment.--Section 748 of the Agriculture, 
        Rural Development, Food and Drug Administration,

[[Page 114 STAT. 365]]

        and Related Agencies Appropriations Act, 1999 (as contained in 
        section 101(a) of division A of Public Law 105-277; 7 U.S.C. 
        1508 note), is amended by striking ``$50'' and inserting 
        ``$100''.

    (c) Payment of Administrative Fee on Behalf of Producers.--Section 
508(b)(5) of the Federal Crop Insurance Act (7 U.S.C. 1508(b)(5)), as 
amended by subsection (b)(1)(B), is amended by inserting after 
subparagraph (A) the following:
                    ``(B) Payment on behalf of producers.--
                          ``(i) Payment authorized.--If State law 
                      permits a licensing fee or other payment to be 
                      paid by an insurance provider to a cooperative 
                      association or trade association and rebated to a 
                      producer with catastrophic risk protection or 
                      additional coverage, a cooperative association or 
                      trade association located in that State may pay, 
                      on behalf of a member of the association in that 
                      State or a contiguous State who consents to be 
                      insured under such an arrangement, all or a 
                      portion of the administrative fee required by this 
                      paragraph for catastrophic risk protection.
                          ``(ii) Treatment of licensing fees.--A 
                      licensing fee or other payment made by an 
                      insurance provider to the cooperative association 
                      or trade association in connection with the 
                      issuance of catastrophic risk protection or 
                      additional coverage to members of the cooperative 
                      association or trade association shall be subject 
                      to the laws regarding rebates of the State in 
                      which the fee or other payment is made.
                          ``(iii) Selection of provider.--Nothing in 
                      this subparagraph limits the option of a producer 
                      to select the licensed insurance agent or other 
                      approved insurance provider from whom the producer 
                      will purchase a policy or plan of insurance or to 
                      refuse coverage for which a payment is offered to 
                      be made under clause (i).
                          ``(iv) Delivery of insurance.--A policy or 
                      plan of insurance for which a payment is made 
                      under clause (i) shall be delivered by a licensed 
                      insurance agent or other approved insurance 
                      provider.
                          ``(v) Additional coverage encouraged.--A 
                      cooperative association or trade association, and 
                      any approved insurance provider with whom a 
                      licensing fee or other arrangement under this 
                      subparagraph is made, shall encourage producer 
                      members to purchase appropriate levels of 
                      additional coverage in order to meet the risk 
                      management needs of the member producers.
                          ``(vi) Report.--Not <<NOTE: Deadline.>> later 
                      than April 1, 2002, 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 
                      that evaluates--
                                    ``(I) the operation of this 
                                subparagraph; and
                                    ``(II) the impact of this 
                                subparagraph on participation in the 
                                Federal crop insurance program, 
                                including the impact on levels of 
                                coverage purchased.''.

[[Page 114 STAT. 366]]

    (d) Reimbursement Rate Change.--Section 508(b)(11) of the Federal 
Crop Insurance Act (7 U.S.C. 1508(b)(11)) is amended by striking ``11 
percent'' and inserting ``8 percent''.

SEC. 104. ADMINISTRATIVE FEE FOR ADDITIONAL COVERAGE.

    Section 508(c) of the Federal Crop Insurance Act (7 U.S.C. 1508(c)) 
is amended by striking paragraph (10) and inserting the following:
            ``(10) Administrative fee.--
                    ``(A) Fee required.--If a producer elects to 
                purchase coverage for a crop at a level in excess of 
                catastrophic risk protection, the producer shall pay an 
                administrative fee for the additional coverage of $30 
                per crop per county.
                    ``(B) Use of fees; waiver.--Subparagraphs (D) and 
                (E) of subsection (b)(5) shall apply with respect to the 
                collection and use of administrative fees under this 
                paragraph.''.

SEC. 105. ASSIGNED YIELDS AND ACTUAL PRODUCTION HISTORY ADJUSTMENTS.

    (a) Assigned Yields.--Section 508(g)(2)(B) of the Federal Crop 
Insurance Act (7 U.S.C. 1508(g)(2)(B)) is amended--
            (1) by striking ``assigned a yield'' and inserting 
        ``assigned--
                          ``(i) a yield'';
            (2) by striking the period at the end and inserting ``; 
        or''; and
            (3) by adding at the end the following:
                          ``(ii) a yield determined by the Corporation, 
                      in the case of--
                                    ``(I) a producer that has not had a 
                                share of the production of the insured 
                                crop for more than two crop years, as 
                                determined by the Secretary;
                                    ``(II) a producer that produces an 
                                agricultural commodity on land that has 
                                not been farmed by the producer; or
                                    ``(III) a producer that rotates a 
                                crop produced on a farm to a crop that 
                                has not been produced on the farm.''.

    (b) Actual Production History Adjustments.--Section 508(g) of the 
Federal Crop Insurance Act (7 U.S.C. 1508(g)) is amended by adding at 
the end the following:
            ``(4) Adjustment in actual production history to establish 
        insurable yields.--
                    ``(A) Application.--This paragraph shall apply 
                whenever the Corporation uses the actual production 
                records of the producer to establish the producer's 
                actual production history for an agricultural commodity 
                for any of the 2001 and subsequent crop years.
                    ``(B) Election to use percentage of transitional 
                yield.--If, for one or more of the crop years used to 
                establish the producer's actual production history of an 
                agricultural commodity, the producer's recorded or 
                appraised yield of the commodity was less than 60 
                percent of the applicable transitional yield, as 
                determined by the Corporation, the Corporation shall, at 
                the election of the producer--
                          ``(i) exclude any of such recorded or 
                      appraised yield; and

[[Page 114 STAT. 367]]

                          ``(ii) replace each excluded yield with a 
                      yield equal to 60 percent of the applicable 
                      transitional yield.
                    ``(C) Premium adjustment.--In the case of a producer 
                that makes an election under subparagraph (B), the 
                Corporation shall adjust the premium to reflect the risk 
                associated with the adjustment made in the actual 
                production history of the producer.
            ``(5) Adjustment to reflect increased yields from successful 
        pest control efforts.--
                    ``(A) Situations justifying adjustment.--The 
                Corporation shall develop a methodology for adjusting 
                the actual production history of a producer when each of 
                the following apply:
                          ``(i) The producer's farm is located in an 
                      area where systematic, area-wide efforts have been 
                      undertaken using certain operations or measures, 
                      or the producer's farm is a location at which 
                      certain operations or measures have been 
                      undertaken, to detect, eradicate, suppress, or 
                      control, or at least to prevent or retard the 
                      spread of, a plant disease or plant pest, 
                      including a plant pest (as defined in section 102 
                      of the Department of Agriculture Organic Act of 
                      1944 (7 U.S.C. 147a)).
                          ``(ii) The presence of the plant disease or 
                      plant pest has been found to adversely affect the 
                      yield of the agricultural commodity for which the 
                      producer is applying for insurance.
                          ``(iii) The efforts described in clause (i) 
                      have been effective.
                    ``(B) Adjustment amount.--The amount by which the 
                Corporation adjusts the actual production history of a 
                producer of an agricultural commodity shall reflect the 
                degree to which the success of the systematic, area-wide 
                efforts described in subparagraph (A), on average, 
                increases the yield of the commodity on the producer's 
                farm, as determined by the Corporation.''.

SEC. 106. REVIEW AND ADJUSTMENT IN RATING METHODOLOGIES.

    Section 508(i) of the Federal Crop Insurance Act (7 U.S.C. 1508(i)) 
is amended--
            (1) by striking ``The Corporation'' and inserting the 
        following:
            ``(1) In general.--The Corporation''; and
            (2) by adding at the end the following:
            ``(2) Review of rating methodologies.--To maximize 
        participation in the Federal crop insurance program and to 
        ensure equity for producers, the Corporation shall periodically 
        review the methodologies employed for rating plans of insurance 
        under this title consistent with section 507(c)(2).
            ``(3) Analysis of rating and loss history.--The Corporation 
        shall analyze the rating and loss history of approved policies 
        and plans of insurance for agricultural commodities by area.
            ``(4) Premium adjustment.--If the Corporation makes a 
        determination that premium rates are excessive for an 
        agricultural commodity in an area relative to the requirements 
        of subsection (d)(2) for that area, then, for the 2002 crop year 
        (and as necessary thereafter), the Corporation shall make

[[Page 114 STAT. 368]]

        appropriate adjustments in the premium rates for that area for 
        that agricultural commodity.''.

SEC. 107. QUALITY ADJUSTMENT.

    Section 508 of the Federal Crop Insurance Act (7 U.S.C. 1508) is 
amended by striking subsection (m) and inserting the following:
    ``(m) Quality Loss Adjustment Coverage.--
            ``(1) Effect of coverage.--If a policy or plan of insurance 
        offered under this title includes quality loss adjustment 
        coverage, the coverage shall provide for a reduction in the 
        quantity of production of the agricultural commodity considered 
        produced during a crop year, or a similar adjustment, as a 
        result of the agricultural commodity not meeting the quality 
        standards established in the policy or plan of insurance.
            ``(2) Additional quality loss adjustment.--
                    ``(A) Producer option.--Notwithstanding any other 
                provision of law, in addition to the quality loss 
                adjustment coverage available under paragraph (1), the 
                Corporation shall offer producers the option of 
                purchasing quality loss adjustment coverage on a basis 
                that is smaller than a unit with respect to an 
                agricultural commodity that satisfies each of the 
                following:
                          ``(i) The agricultural commodity is sold on an 
                      identity-preserved basis.
                          ``(ii) All quality determinations are made 
                      solely by the Federal agency designated to grade 
                      or classify the agricultural commodity.
                          ``(iii) All quality determinations are made in 
                      accordance with standards published by the Federal 
                      agency in the Federal Register.
                          ``(iv) The discount schedules that reflect the 
                      reduction in quality of the agricultural commodity 
                      are established by the Secretary.
                    ``(B) Basis for adjustment.--Under this paragraph, 
                the Corporation shall set the quality standards below 
                which quality losses will be paid based on the 
                variability of the grade of the agricultural commodity 
                from the base quality for the agricultural commodity.
            ``(3) Review of criteria and procedures.--The Corporation 
        shall contract with a qualified person to review the quality 
        loss adjustment procedures of the Corporation so that the 
        procedures more accurately reflect local quality discounts that 
        are applied to agricultural commodities insured under this 
        title. Based on the review, the Corporation shall make 
        adjustments in the procedures, taking into consideration the 
        actuarial soundness of the adjustment and the prevention of 
        fraud, waste, and abuse.''.

SEC. 108. DOUBLE INSURANCE AND PREVENTED PLANTING.

    The Federal Crop Insurance Act (7 U.S.C. 1501 et seq.) is amended by 
inserting after section 508 (7 U.S.C. 1508) the following:

``SEC. 508A. DOUBLE INSURANCE AND PREVENTED PLANTING.

    ``(a) Definitions.--In this section:
            ``(1) First crop.--The term `first crop' means the first 
        crop of the first agricultural commodity planted for harvest, or 
        prevented from being planted, on specific acreage during a crop 
        year and insured under this title.

[[Page 114 STAT. 369]]

            ``(2) Second crop.--The term `second crop' means a second 
        crop of the same agricultural commodity as the first crop, or a 
        crop of a different agricultural commodity following the first 
        crop, planted on the same acreage as the first crop for harvest 
        in the same crop year, except the term does not include a 
        replanted crop.
            ``(3) Replanted crop.--The term `replanted crop' means any 
        agricultural commodity replanted on the same acreage as the 
        first crop for harvest in the same crop year if the replanting 
        is required by the terms of the policy of insurance covering the 
        first crop.

    ``(b) Double Insurance.--
            ``(1) Options on loss to first crop.--Except as provided in 
        subsections (d) and (e), if a first crop insured under this 
        title in a crop year has a total or partial insurable loss, the 
        producer of the first crop may elect one of the following 
        options:
                    ``(A) No second crop planted.--The producer may--
                          ``(i) elect to not plant a second crop on the 
                      same acreage for harvest in the same crop year; 
                      and
                          ``(ii) collect an indemnity payment that is 
                      equal to 100 percent of the insurable loss for the 
                      first crop.
                    ``(B) Second crop planted.--The producer may--
                          ``(i) plant a second crop on the same acreage 
                      for harvest in the same crop year; and
                          ``(ii) collect an indemnity payment 
                      established by the Corporation for the first crop, 
                      but not to exceed 35 percent of the insurable loss 
                      for the first crop.
            ``(2) Effect of no loss to second crop.--If a producer makes 
        an election under paragraph (1)(B) and the producer does not 
        suffer an insurable loss to the second crop, the producer may 
        collect an indemnity payment for the first crop that is equal 
        to--
                    ``(A) 100 percent of the insurable loss for the 
                first crop; less
                    ``(B) the amount previously collected under 
                paragraph (1)(B)(ii).
            ``(3) Premium for first crop if second crop planted.--
                    ``(A) Initial premium.--If a producer makes an 
                election under paragraph (1)(B), the producer shall be 
                responsible for a premium for the first crop that is 
                commensurate with the indemnity paid under paragraph 
                (1)(B)(ii). The Corporation shall adjust the total 
                premium for the first crop to reflect the reduced 
                indemnity.
                    ``(B) Effect of no loss to second crop.--If the 
                producer makes an election under paragraph (1)(B) and 
                the producer does not suffer an insurable loss to the 
                second crop, the producer shall be responsible for a 
                premium for the first crop that is equal to--
                          ``(i) the full premium owed by the producer 
                      for the first crop; less
                          ``(ii) the amount of premium previously paid 
                      under subparagraph (A).

    ``(c) Prevented Planting Coverage.--
            ``(1) Options on loss to first crop.--Except as provided in 
        subsections (d) and (e), if a first crop insured under this 
        title in a crop year is prevented from being planted, the 
        producer of the first crop may elect one of the following 
        options:

[[Page 114 STAT. 370]]

                    ``(A) No second crop planted.--The producer may--
                          ``(i) elect to not plant a second crop on the 
                      same acreage for harvest in the same crop year; 
                      and
                          ``(ii) subject to paragraph (4), collect an 
                      indemnity payment that is equal to 100 percent of 
                      the prevented planting guarantee for the acreage 
                      for the first crop.
                    ``(B) Second crop planted.--The producer may--
                          ``(i) plant a second crop on the same acreage 
                      for harvest in the same crop year; and
                          ``(ii) subject to paragraphs (4) and (5), 
                      collect an indemnity payment established by the 
                      Corporation for the first crop, but not to exceed 
                      35 percent of the prevented planting guarantee for 
                      the acreage for the first crop.
            ``(2) Premium for first crop if second planted.--If the 
        producer makes an election under paragraph (1)(B), the producer 
        shall pay a premium for the first crop that is commensurate with 
        the indemnity paid under paragraph (1)(B)(ii). The Corporation 
        shall adjust the total premium for the first crop to reflect the 
        reduced indemnity.
            ``(3) Effect on actual production history.--Except in the 
        case of double cropping described in subsection (d), if a 
        producer make an election under paragraph (1)(B) for a crop 
        year, the Corporation shall assign the producer a recorded yield 
        for that crop year for the first crop equal to 60 percent of the 
        producer's actual production history for the agricultural 
        commodity involved, for purposes of determining the producer's 
        actual production history for subsequent crop years.
            ``(4) Area conditions required for payment.--The Corporation 
        shall limit prevented planting payments for producers to those 
        situations in which other producers, in the area where a first 
        crop is prevented from being planted is located, are also 
        generally affected by the conditions that prevented the first 
        crop from being planted.
            ``(5) Planting date.--If a producer plants the second crop 
        before the latest planting date established by the Corporation 
        for the first crop, the Corporation shall not make a prevented 
        planting payment with regard to the first crop.

    ``(d) Exception for Established Double Cropping Practices.--A 
producer may receive full indemnity payments on two or more crops 
planted for harvest in the same crop year and insured under this title 
if each of the following conditions are met:
            ``(1) There is an established practice of planting two or 
        more crops for harvest in the same crop year in the area, as 
        determined by the Corporation.
            ``(2) An additional coverage policy or plan of insurance is 
        offered with respect to the agricultural commodities planted on 
        the same acreage for harvest in the same crop year in the area.
            ``(3) The producer has a history of planting two or more 
        crops for harvest in the same crop year or the applicable 
        acreage has historically had two or more crops planted for 
        harvest in the same crop year.
            ``(4) The second or more crops are customarily planted after 
        the first crop for harvest on the same acreage in the same year 
        in the area.

[[Page 114 STAT. 371]]

    ``(e) Subsequent Crops.--Except in the case of double cropping 
described in subsection (d), if a producer elects to plant a crop (other 
than a replanted crop) subsequent to a second crop on the same acreage 
as the first crop and second crop for harvest in the same crop year, the 
producer shall not be eligible for insurance under this title, or 
noninsured crop assistance under section 196 of the Agricultural Market 
Transition Act (7 U.S.C. 7333), for the subsequent crop.''.

SEC. 109. NONINSURED CROP DISASTER ASSISTANCE PROGRAM.

    (a) Operation and Administration of Program.--Section 196(a)(2) of 
the Agricultural Market Transition Act (7 U.S.C. 7333(a)(2)) is amended 
by adding at the end the following:
                    ``(C) Combination of similar types or varieties.--At 
                the option of the Secretary, all types or varieties of a 
                crop or commodity, described in subparagraphs (A) and 
                (B), may be considered to be a single eligible crop 
                under this section.''.

    (b) Timely Application.--Section 196(b)(1) of the Agricultural 
Market Transition Act (7 U.S.C. 7333(b)(1)) is amended in the second 
sentence by striking ``at such time as the Secretary may require'' and 
inserting ``not later than 30 days before the beginning of the coverage 
period, as determined by the Secretary''.
    (c) Records and Reports.--Section 196(b) of the Agricultural Market 
Transition Act (7 U.S.C. 7333(b)) is amended--
            (1) by striking paragraph (2) and inserting the following:
            ``(2) Records.--To be eligible for assistance under this 
        section, a producer shall provide annually to the Secretary 
        records of crop acreage, acreage yields, and production for each 
        crop, as required by the Secretary.''; and
            (2) in paragraph (3), by inserting ``annual'' after ``shall 
        provide''.

    (d) Loss Requirements.--Section 196 of the Agricultural Market 
Transition Act (7 U.S.C. 7333) is amended by striking subsection (c) and 
inserting the following:
    ``(c) Loss Requirements.--
            ``(1) Cause.--To be eligible for assistance under this 
        section, a producer of an eligible crop shall have suffered a 
        loss of a noninsured commodity as the result of a cause 
        described in subsection (a)(3).
            ``(2) Assistance.--On making a determination described in 
        subsection (a)(3), the Secretary shall provide assistance under 
        this section to producers of an eligible crop that have suffered 
        a loss as a result of the cause described in subsection (a)(3).
            ``(3) Prevented planting.--Subject to paragraph (1), the 
        Secretary shall make a prevented planting noninsured crop 
        disaster assistance payment if the producer is prevented from 
        planting more than 35 percent of the acreage intended for the 
        eligible crop because of drought, flood, or other natural 
        disaster, as determined by the Secretary.
            ``(4) Area trigger.--The Secretary shall provide assistance 
        to individual producers without any requirement of an area 
        loss.''.

    (e) Service Fee.--Section 196 of the Agricultural Market Transition 
Act (7 U.S.C. 7333) is amended by adding at the end the following:

[[Page 114 STAT. 372]]

    ``(k) Service Fee.--
            ``(1) In general.--To be eligible to receive assistance for 
        an eligible crop for a crop year under this section, a producer 
        shall pay to the Secretary (at the time at which the producer 
        submits the application under subsection (b)(1)) a service fee 
        for the eligible crop in an amount that is equal to the lesser 
        of--
                    ``(A) $100 per crop per county; or
                    ``(B) $300 per producer per county, but not to 
                exceed a total of $900 per producer.
            ``(2) Waiver.--The Secretary shall waive the service fee 
        required under paragraph (1) in the case of a limited resource 
        farmer, as defined by the Secretary.
            ``(3) Use.--The Secretary shall deposit service fees 
        collected under this subsection in the Commodity Credit 
        Corporation Fund.''.

                 Subtitle B--Improving Program Integrity

SEC. 121. IMPROVING PROGRAM COMPLIANCE AND INTEGRITY.

    (a) Additional Methods of Ensuring Program Compliance and 
Integrity.--Section 515 of the Federal Crop Insurance Act (7 U.S.C. 
1514) is amended to read as follows:

``SEC. 515. PROGRAM COMPLIANCE AND INTEGRITY.

    ``(a) Purpose.--
            ``(1) In general.--The purpose of this section is to improve 
        compliance with, and the integrity of, the Federal crop 
        insurance program.
            ``(2) Role of insurance providers.--The Corporation shall 
        work actively with approved insurance providers to address 
        program compliance and integrity issues as such issues develop.

    ``(b) Notification of Compliance Problems.--
            ``(1) Notification of errors, omissions, and failures.--The 
        Corporation shall notify in writing an approved insurance 
        provider of any error, omission, or failure to follow 
        Corporation regulations or procedures for which the approved 
        insurance provider may be responsible and which may result in a 
        debt owed the Corporation.
            ``(2) Time for notification.--Notice under paragraph (1) 
        shall be given within 3 years after the end of the insurance 
        period during which the error, omission, or failure is alleged 
        to have occurred, except that this time limitation shall not 
        apply with respect to an error, omission, or procedural 
        violation that is willful or intentional.
            ``(3) Effect of failure to timely notify.--Except as 
        provided in paragraph (2), the failure to timely provide the 
        notice required under this subsection shall relieve the approved 
        insurance provider from the debt owed the Corporation.

    ``(c) Reconciling Producer Information.--The Secretary shall develop 
and implement a coordinated plan for the Corporation and the Farm 
Service Agency to reconcile all relevant information received by the 
Corporation or the Farm Service Agency from a producer who obtains crop 
insurance coverage under this title. Beginning with the 2001 crop year, 
the Secretary shall require that the Corporation and the Farm Service 
Agency reconcile such

[[Page 114 STAT. 373]]

producer-derived information on at least an annual basis in order to 
identify and address any discrepancies.
    ``(d) Identification and Elimination of Fraud, Waste, and Abuse.--
            ``(1) FSA monitoring program.--The Secretary shall develop 
        and implement a coordinated plan for the Farm Service Agency to 
        assist the Corporation in the ongoing monitoring of programs 
        carried out under this title, including--
                    ``(A) at the request of the Corporation or, subject 
                to paragraph (2), on its own initiative if the Farm 
                Service Agency has reason to suspect the existence of 
                program fraud, waste, or abuse, conducting fact finding 
                relative to allegations of program fraud, waste, or 
                abuse;
                    ``(B) reporting to the Corporation, in writing in a 
                timely manner, the results of any fact finding conducted 
                pursuant to subparagraph (A), any allegation of fraud, 
                waste, or abuse, and any identified program 
                vulnerabilities; and
                    ``(C) assisting the Corporation and approved 
                insurance providers in auditing a statistically 
                appropriate number of claims made under any policy or 
                plan of insurance under this title.
            ``(2) FSA inquiry.--If, within five calendar days after 
        receiving a report submitted under paragraph (1)(B), the 
        Corporation does not provide a written response that describes 
        the intended actions of the Corporation, the Farm Service Agency 
        may conduct its own inquiry into the alleged program fraud, 
        waste, or abuse on approval from the State director of the Farm 
        Service Agency of the State in which the alleged fraud, waste, 
        or abuse occurred. If as a result of the inquiry, the Farm 
        Service Agency concludes further investigation is warranted, but 
        the Corporation declines to proceed with the investigation, the 
        Farm Service Agency may refer the matter to the Inspector 
        General of the Department of Agriculture.
            ``(3) Use of field infrastructure.--The plan required by 
        paragraph (1) shall provide for the use of the field 
        infrastructure of the Farm Service Agency. The Secretary shall 
        ensure that relevant Farm Service Agency personnel are 
        appropriately trained for any responsibilities assigned to the 
        personnel under the plan. At a minimum, the personnel shall 
        receive the same level of training and pass the same basic 
        competency tests as required of loss adjusters of approved 
        insurance providers.
            ``(4) Maintenance of provider effort.--
                    ``(A) In general.--The activities of the Farm 
                Service Agency under this subsection do not affect the 
                responsibility of approved insurance providers to 
                conduct any audits of claims or other program reviews 
                required by the Corporation.
                    ``(B) Notification of providers.--The Corporation 
                shall notify the appropriate approved insurance provider 
                of a report from the Farm Service Agency regarding 
                alleged program fraud, waste, or abuse, unless the 
                provider is suspected to be included in, or a party to, 
                the alleged fraud, waste, or abuse.
                    ``(C) Response.--An approved insurance provider that 
                receives a notice under subparagraph (B) shall submit a 
                report to the Corporation, within an appropriate time 
                period determined by the Secretary, describing the 
                actions

[[Page 114 STAT. 374]]

                taken by the provider to investigate the allegations of 
                program fraud, waste, or abuse contained in the notice.
            ``(5) Corporation response to provider reports.--
                    ``(A) Prompt response.--If an approved insurance 
                provider reports to the Corporation that the approved 
                insurance provider suspects intentional 
                misrepresentation, fraud, waste, or abuse, the 
                Corporation shall make a determination and provide, 
                within 90 calendar days after receiving the report, a 
                written response that describes the intended actions of 
                the Corporation.
                    ``(B) Cooperative effort.--The approved insurance 
                provider and the Corporation shall take coordinated 
                action in any case where misrepresentation, fraud, 
                waste, or abuse is alleged.
                    ``(C) Failure to timely respond.--If the Corporation 
                fails to respond as required by subparagraph (A), an 
                approved insurance provider may request the Farm Service 
                Agency to assist the provider in an inquiry into the 
                alleged program fraud, waste, or abuse.

    ``(e) Consultation with State FSA Committees.--The Secretary shall 
establish procedures under which the Corporation shall consult with the 
State committee of the Farm Service Agency for a State with respect to 
policies, plans of insurance, and material related to such policies or 
plans of insurance (including applicable sales closing dates, assigned 
yields, and transitional yields) offered in that State under this title.
    ``(f ) Detection of Disparate Performance.--
            ``(1) Covered activities.--The Secretary shall establish 
        procedures under which the Corporation will be able to identify 
        the following:
                    ``(A) Any agent engaged in the sale of coverage 
                offered under this title where the loss claims 
                associated with such sales by the agent are equal to or 
                greater than 150 percent (or an appropriate percentage 
                specified by the Corporation) of the mean for all loss 
                claims associated with such sales by all other agents 
                operating in the same area, as determined by the 
                Corporation.
                    ``(B) Any person performing loss adjustment services 
                relative to coverage offered under this title where such 
                loss adjustments performed by the person result in 
                accepted or denied claims equal to or greater than 150 
                percent (or an appropriate percentage specified by the 
                Corporation) of the mean for accepted or denied claims 
                (as applicable) for all other persons performing loss 
                adjustment services in the same area, as determined by 
                the Corporation.
            ``(2) Review.--
                    ``(A) Review required.--The Corporation shall 
                conduct a review of any agent identified pursuant to 
                paragraph (1)(A), and any person identified pursuant to 
                paragraph (1)(B), to determine whether the higher loss 
                claims associated with the agent or the higher number of 
                accepted or denied claims (as applicable) associated 
                with the person are the result of fraud, waste, or 
                abuse.
                    ``(B) Remedial action.--The Corporation shall take 
                appropriate remedial action with respect to any 
                occurrence of fraud, waste, or abuse identified in a 
                review conducted under this paragraph.

[[Page 114 STAT. 375]]

            ``(3) Oversight of agents and loss adjusters.--The 
        Corporation shall develop procedures to require an annual review 
        by an approved insurance provider of the performance of each 
        agent and loss adjuster used by the approved insurance provider. 
        The Corporation shall oversee the conduct of annual reviews and 
        may consult with an approved insurance provider regarding any 
        remedial action that is determined to be necessary as a result 
        of the annual review of an agent or loss adjuster.

    ``(g) Submission of Information to Corporation to Support Compliance 
Efforts.--
            ``(1) Types of information required.--The Secretary shall 
        establish procedures under which approved insurance providers 
        shall submit to the Corporation the following information with 
        respect to each policy or plan of insurance offered under this 
        title:
                    ``(A) The name and identification number of the 
                insured.
                    ``(B) The agricultural commodity to be insured.
                    ``(C) The elected coverage level, including the 
                price election, of the insured.
            ``(2) Time for <<NOTE: Deadline.>> submission.--The 
        information required by paragraph (1) with respect to a policy 
        or plan of insurance shall be submitted so as to ensure receipt 
        by the Corporation not later than the Saturday of the week 
        containing the calendar day that is 30 days after the applicable 
        sales closing date for the crop to be insured.

    ``(h) Sanctions for Program Noncompliance and Fraud.--
            ``(1) False information.--A producer, agent, loss adjuster, 
        approved insurance provider, or other person that willfully and 
        intentionally provides any false or inaccurate information to 
        the Corporation or to an approved insurance provider with 
        respect to a policy or plan of insurance under this title may, 
        after notice and an opportunity for a hearing on the record, be 
        subject to one or more of the sanctions described in paragraph 
        (3).
            ``(2) Compliance.--A person may, after notice and an 
        opportunity for a hearing on the record, be subject to one or 
        more of the sanctions described in paragraph (3) if the person 
        is a producer, agent, loss adjuster, approved insurance 
        provider, or other person that willfully and intentionally fails 
        to comply with a requirement of the Corporation.
            ``(3) Authorized sanctions.--If the Secretary determines 
        that a person covered by this subsection has committed a 
        material violation under paragraph (1) or (2), the following 
        sanctions may be imposed:
                    ``(A) Civil fines.--A civil fine may be imposed for 
                each violation in an amount not to exceed the greater 
                of--
                          ``(i) the amount of the pecuniary gain 
                      obtained as a result of the false or inaccurate 
                      information provided or the noncompliance with a 
                      requirement of this title; or
                          ``(ii) $10,000.
                    ``(B) Producer disqualification.--In the case of a 
                violation committed by a producer, the producer may be 
                disqualified for a period of up to 5 years from 
                receiving

[[Page 114 STAT. 376]]

                any monetary or nonmonetary benefit provided under each 
                of the following:
                          ``(i) This title.
                          ``(ii) The Agricultural Market Transition Act 
                      (7 U.S.C. 7201 et seq.), including the noninsured 
                      crop disaster assistance program under section 196 
                      of that Act (7 U.S.C. 7333).
                          ``(iii) The Agricultural Act of 1949 (7 U.S.C. 
                      1421 et seq.).
                          ``(iv) The Commodity Credit Corporation 
                      Charter Act (15 U.S.C. 714 et seq.).
                          ``(v) The Agricultural Adjustment Act of 1938 
                      (7 U.S.C. 1281 et seq.).
                          ``(vi) Title XII of the Food Security Act of 
                      1985 (16 U.S.C. 3801 et seq.).
                          ``(vii) The Consolidated Farm and Rural 
                      Development Act (7 U.S.C. 1921 et seq.).
                          ``(viii) Any law that provides assistance to a 
                      producer of an agricultural commodity affected by 
                      a crop loss or a decline in the prices of 
                      agricultural commodities.
                    ``(C) Disqualification of other persons.--In the 
                case of a violation committed by an agent, loss 
                adjuster, approved insurance provider, or other person 
                (other than a producer), the violator may be 
                disqualified for a period of up to 5 years from 
                participating in any program, or receiving any benefit, 
                under this title.
            ``(4) Assessment of sanction.--The Secretary shall consider 
        the gravity of the violation of the person covered by this 
        subsection in determining--
                    ``(A) whether to impose a sanction under this 
                subsection; and
                    ``(B) the type and amount of the sanction to be 
                imposed.
            ``(5) Disclosure of sanctions.--Each policy or plan of 
        insurance under this title shall provide notice describing the 
        sanctions prescribed under paragraph (3) for willfully and 
        intentionally--
                    ``(A) providing false or inaccurate information to 
                the Corporation or to an approved insurance provider; or
                    ``(B) failing to comply with a requirement of the 
                Corporation.
            ``(6) Insurance fund.--Any funds collected under this 
        subsection shall be deposited into the insurance fund 
        established under section 516(c).

    ``(i) Annual Report on Program Compliance and Integrity Efforts.--
            ``(1) Report required.--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 
        an annual report describing the operation of this section during 
        the preceding year and efforts undertaken by the Secretary and 
        the Corporation to carry out this section.
            ``(2) Information regarding fraud, waste, and abuse.--The 
        report shall identify specific occurrences of waste, fraud, or 
        abuse and contain an outline of actions that have been or are 
        being taken to eliminate the identified waste, fraud, or abuse.

[[Page 114 STAT. 377]]

    ``( j) Information Management.--
            ``(1) Systems upgrades.--The Secretary shall upgrade the 
        information management systems of the Corporation used in the 
        administration and enforcement and this title. In upgrading the 
        systems, the Secretary shall ensure that new hardware and 
        software are compatible with the hardware and software used by 
        other agencies of the Department to maximize data sharing and 
        promote the purpose of this section.
            ``(2) Use of available information technologies.--The 
        Secretary shall use the information technologies known as data 
        mining and data warehousing and other available information 
        technologies to administer and enforce this title.
            ``(3) Use of private sector.--The Secretary may enter into 
        contracts to use private sector expertise and technological 
        resources in implementing this subsection.

    ``(k) Funding.--
            ``(1) Available funds.--To carry out this section and 
        sections 502(c), 506(h), 508(a)(3)(B), and 508(f )(3)(A), the 
        Corporation may use, from amounts made available from the 
        insurance fund established under section 516(c), not more than 
        $23,000,000 during the period of fiscal years 2001 through 2005, 
        of which not more than $9,000,000 shall be available for fiscal 
        year 2001.
            ``(2) Prohibition.--None of the funds made available under 
        paragraph (1) may be used to pay the salaries of employees of 
        the Corporation.''.

    (b) Conforming Amendment.--Section 506 of the Federal Crop Insurance 
Act (7 U.S.C. 1506) is amended--
            (1) by striking subsection (q); and
            (2) by redesignating subsections (r) and (s) as subsections 
        (q) and (r), respectively.

SEC. 122. PROTECTION OF CONFIDENTIAL INFORMATION.

    Section 502 of the Federal Crop Insurance Act (7 U.S.C. 1502) is 
amended by adding at the end the following:
    ``(c) Protection of Confidential Information.--
            ``(1) General prohibition against disclosure.--Except as 
        provided in paragraph (2), the Secretary, any other officer or 
        employee of the Department or an agency thereof, an approved 
        insurance provider and its employees and contractors, and any 
        other person may not disclose to the public information 
        furnished by a producer under this title.
            ``(2) Authorized disclosure.--
                    ``(A) Disclosure in statistical or aggregate form.--
                Information described in paragraph (1) may be disclosed 
                to the public if the information has been transformed 
                into a statistical or aggregate form that does not allow 
                the identification of the person who supplied particular 
                information.
                    ``(B) Consent of producer.--A producer may consent 
                to the disclosure of information described in paragraph 
                (1). The participation of the producer in, and the 
                receipt of any benefit by the producer under, this title 
                or any other program administered by the Secretary may 
                not be conditioned on the producer providing consent 
                under this paragraph.

[[Page 114 STAT. 378]]

            ``(3) Violations; penalties.--Section 1770(c) of the Food 
        Security Act of 1985 (7 U.S.C. 2276(c)) shall apply with respect 
        to the release of information collected in any manner or for any 
        purpose prohibited by this subsection.''.

SEC. 123. GOOD FARMING PRACTICES.

    Section 508(a) of the Federal Crop Insurance Act (7 U.S.C. 1508(a)) 
is amended by striking paragraph (3) and inserting the following:
            ``(3) Exclusion of losses due to certain actions of 
        producer.--
                    ``(A) Exclusions.--Insurance provided under this 
                subsection shall not cover losses due to--
                          ``(i) the neglect or malfeasance of the 
                      producer;
                          ``(ii) the failure of the producer to reseed 
                      to the same crop in such areas and under such 
                      circumstances as it is customary to reseed; or
                          ``(iii) the failure of the producer to follow 
                      good farming practices, including scientifically 
                      sound sustainable and organic farming practices.
                    ``(B) Good farming practices.--
                          ``(i) Informal administrative process.--A 
                      producer shall have the right to a review of a 
                      determination regarding good farming practices 
                      made under subparagraph (A)(iii) in accordance 
                      with an informal administrative process to be 
                      established by the Corporation.
                          ``(ii) Administrative review.--
                                    ``(I) No adverse decision.--The 
                                determination shall not be considered an 
                                adverse decision for purposes of 
                                subtitle H of the Department of 
                                Agriculture Reorganization Act of 1994 
                                (7 U.S.C. 6991 et seq.).
                                    ``(II) Reversal or modification.--
                                Except as provided in clause (i), the 
                                determination may not be reversed or 
                                modified as the result of a subsequent 
                                administrative review.
                          ``(iii) Judicial review.--
                                    ``(I) Right to review.--A producer 
                                shall have the right to judicial review 
                                of the determination without exhausting 
                                any right to a review under clause (i).
                                    ``(II) Reversal or modification.--
                                The determination may not be reversed or 
                                modified as the result of judicial 
                                review unless the determination is found 
                                to be arbitrary or capricious.''.

SEC. 124. RECORDS AND REPORTING.

    (a) Condition of Obtaining Coverage.--Section 508(f )(3) of the 
Federal Crop Insurance Act (7 U.S.C. 1508(f )(3)) is amended by striking 
subparagraph (A) and inserting the following:
                    ``(A) provide annually records acceptable to the 
                Secretary regarding crop acreage, acreage yields, and 
                production for each agricultural commodity insured under 
                this title or accept a yield determined by the 
                Corporation; and''.

    (b) Additional General Power.--Section 506 of the Federal Crop 
Insurance Act (7 U.S.C. 1506) is amended by striking subsection (h) and 
inserting the following:

[[Page 114 STAT. 379]]

    ``(h) Collection and Sharing of Information.--
            ``(1) Surveys and investigations.--The Corporation may 
        conduct surveys and investigations relating to crop insurance, 
        agriculture-related risks and losses, and other issues related 
        to carrying out this title.
            ``(2) Data collection.--The Corporation shall assemble data 
        for the purpose of establishing sound actuarial bases for 
        insurance on agricultural commodities.
            ``(3) Sharing of records.--Notwithstanding section 502(c), 
        records submitted in accordance with this title and section 196 
        of the Agricultural Market Transition Act (7 U.S.C. 7333) shall 
        be available to agencies and local offices of the Department, 
        appropriate State and Federal agencies and divisions, and 
        approved insurance providers for use in carrying out this title, 
        such section 196, and other agricultural programs.''.

                 Subtitle C--Research and Pilot Programs

SEC. 131. RESEARCH AND DEVELOPMENT.

    The Federal Crop Insurance Act (7 U.S.C. 1501 et seq.) is amended by 
adding at the end the following:

``SEC. 522. RESEARCH AND DEVELOPMENT.

    ``(a) Definition of Policy.--In this section, the term `policy' 
means a policy, plan of insurance, provision of a policy or plan of 
insurance, and related materials.
    ``(b) Reimbursement of Research, Development, and Maintenance 
Costs.--
            ``(1) Research and development reimbursement.--The 
        Corporation shall provide a payment to reimburse an applicant 
        for research and development costs directly related to a policy 
        that is--
                    ``(A) submitted to the Board and approved by the 
                Board under section 508(h) for reinsurance; and
                    ``(B) if applicable, offered for sale to producers.
            ``(2) Existing plans.--The Corporation shall reimburse costs 
        associated with research and development costs directly related 
        to a policy that was approved by the Board prior to the date of 
        the enactment of this section.
            ``(3) Marketability.--The Corporation shall approve a 
        reimbursement under paragraph (1) or (2) only after determining 
        that the policy is marketable based on a reasonable marketing 
        plan, as determined by the Board.
            ``(4) Maintenance payments.--
                    ``(A) Requirement.--The Corporation shall reimburse 
                maintenance costs associated with the annual cost of 
                underwriting for a policy described in paragraphs (1) 
                and (2).
                    ``(B) Duration.--Payments with respect to 
                maintenance costs may be provided for a period of not 
                more than four reinsurance years subsequent to Board 
                approval for payment under this subsection.
                    ``(C) Options for maintenance.--On the expiration of 
                the 4-year period described in subparagraph (B), the 
                approved insurance provider responsible for maintenance 
                of the policy may--

[[Page 114 STAT. 380]]

                          ``(i) maintain the policy and charge a fee to 
                      approved insurance providers that elect to sell 
                      the policy under this subsection; or
                          ``(ii) transfer responsibility for maintenance 
                      of the policy to the Corporation.
                    ``(D) Fee.--
                          ``(i) Amount.--Subject to approval by the 
                      Board, the amount of the fee that is payable by an 
                      approved insurance provider that elects to sell 
                      the policy shall be an amount that is determined 
                      by the approved insurance provider maintaining the 
                      policy.
                          ``(ii) Approval.--The Board shall approve the 
                      amount of a fee determined under clause (i) for 
                      maintenance of the policy unless the Board 
                      determines that the amount of the fee--
                                    ``(I) is unreasonable in relation to 
                                the maintenance costs associated with 
                                the policy; or
                                    ``(II) unnecessarily inhibits the 
                                use of the policy.
            ``(5) Treatment of payment.--Payments made under this 
        subsection for a policy shall be considered as payment in full 
        by the Corporation for the research and development conducted 
        with regard to the policy and any property rights to the policy.
            ``(6) Reimbursement amount.--The Corporation shall determine 
        the amount of the payment under this subsection for an approved 
        policy based on the complexity of the policy and the size of the 
        area in which the policy or material is expected to be sold.

    ``(c) Research and Development Contracting Authority.--
            ``(1) Authority.--The Corporation may enter into contracts 
        to carry out research and development to--
                    ``(A) increase participation in States in which the 
                Corporation determines that--
                          ``(i) there is traditionally, and continues to 
                      be, a low level of Federal crop insurance 
                      participation and availability; and
                          ``(ii) the State is underserved by the Federal 
                      crop insurance program;
                    ``(B) increase participation in areas that are 
                underserved by the Federal crop insurance program; and
                    ``(C) increase participation by producers of 
                underserved agricultural commodities, including 
                specialty crops.
            ``(2) Underserved agricultural commodities and areas.--
                    ``(A) Authority.--The Corporation may enter into 
                contracts under procedures prescribed by the Corporation 
                with qualified persons to carry out research and 
                development for policies that promote the purposes of 
                paragraph (1).
                    ``(B) Consultation.--Before entering into a contract 
                under subparagraph (A), the Corporation shall consult 
                with groups representing producers of agricultural 
                commodities that would be served by the policies that 
                are the subject of the research and development.
            ``(3) Qualified persons.--A person with experience in crop 
        insurance or farm or ranch risk management (including a college 
        or university, an approved insurance provider, and a trade or 
        research organization), as determined by the Corporation,

[[Page 114 STAT. 381]]

        shall be eligible to enter into a contract with the Corporation 
        under this subsection.
            ``(4) Types of contracts.--A contract under this subsection 
        may provide for research and development regarding new or 
        expanded policies, including policies based on adjusted gross 
        income, cost-of-production, quality losses, and an intermediate 
        base program with a higher coverage and cost than catastrophic 
        risk protection.
            ``(5) Use of resulting policies.--The Corporation may offer 
        any policy developed under this subsection that is approved by 
        the Board.
            ``(6) Research and development priorities.--The Corporation 
        shall establish as one of the highest research and development 
        priorities of the Corporation the development of a pasture, 
        range, and forage program.
            ``(7) Study of multiyear coverage.--
                    ``(A) In general.--The Corporation shall contract 
                with a qualified person to conduct a study to determine 
                whether offering policies that provide coverage for 
                multiple years would reduce fraud, waste, and abuse by 
                persons that participate in the Federal crop insurance 
                program.
                    ``(B) Report.--Not <<NOTE: Deadline.>> later than 1 
                year after the date of the enactment of this section, 
                the Corporation 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 that describes the results of the study 
                conducted under subparagraph (A).
            ``(8) Contract for revenue coverage plans.--The Corporation 
        shall enter into a contract for research and development 
        regarding one or more revenue coverage plans that are designed 
        to enable producers to take maximum advantage of fluctuations in 
        market prices and thereby maximize revenue realized from the 
        sale of an agricultural commodity. A revenue coverage plan may 
        include the use of existing market instruments or the 
        development of new market instruments. 
        Not <<NOTE: Deadline.>> later than 15 months after the date of 
        the enactment of this section, the Corporation 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 that describes the results of the contract 
        entered into under this paragraph.
            ``(9) Contract for cost of production policy.--
                    ``(A) Authority.--The Corporation shall enter into a 
                contract for research and development regarding a cost 
                of production policy.
                    ``(B) Research and development.--The research and 
                development shall--
                          ``(i) take into consideration the differences 
                      in the cost of production on a county-by-county 
                      basis; and
                          ``(ii) cover as many commodities as is 
                      practicable.
            ``(10) Relation to limitations.--A policy developed under 
        this subsection may be prepared without regard to the 
        limitations of this title, including--
                    ``(A) the requirement concerning the levels of 
                coverage and rates; and

[[Page 114 STAT. 382]]

                    ``(B) the requirement that the price level for each 
                insured agricultural commodity must equal the expected 
                market price for the agricultural commodity, as 
                established by the Board.

    ``(d) Partnerships for Risk Management Development and 
Implementation.--
            ``(1) Purpose.--The purpose of this subsection is to 
        authorize the Corporation to enter into partnerships with public 
        and private entities for the purpose of increasing the 
        availability of loss mitigation, financial, and other risk 
        management tools for producers, with a priority given to risk 
        management tools for producers of agricultural commodities 
        covered by section 196 of the Agricultural Market Transition Act 
        (7 U.S.C. 7333), specialty crops, and underserved agricultural 
        commodities.
            ``(2) Authority.--The Corporation may enter into 
        partnerships with the Cooperative State Research, Education, and 
        Extension Service, the Agricultural Research Service, the 
        National Oceanic Atmospheric Administration, and other 
        appropriate public and private entities with demonstrated 
        capabilities in developing and implementing risk management and 
        marketing options for producers of specialty crops and 
        underserved agricultural commodities.
            ``(3) Objectives.--The Corporation may enter into a 
        partnership under paragraph (2)--
                    ``(A) to enhance the notice and timeliness of notice 
                of weather conditions that could negatively affect crop 
                yields, quality, and final product use in order to allow 
                producers to take preventive actions to increase end 
                product profitability and marketability and to reduce 
                the possibility of crop insurance claims;
                    ``(B) to develop a multifaceted approach to pest 
                management and fertilization to decrease inputs, 
                decrease environmental exposure, and increase 
                application efficiency;
                    ``(C) to develop or improve techniques for planning, 
                breeding, planting, growing, maintaining, harvesting, 
                storing, shipping, and marketing that will address 
                quality and quantity challenges associated with year-to-
                year and regional variations;
                    ``(D) to clarify labor requirements and assist 
                producers in complying with requirements to better meet 
                the physically intense and time-compressed planting, 
                tending, and harvesting requirements associated with the 
                production of specialty crops and underserved 
                agricultural commodities;
                    ``(E) to provide assistance to State foresters or 
                equivalent officials for the prescribed use of burning 
                on private forest land for the prevention, control, and 
                suppression of fire;
                    ``(F) to provide producers with training and 
                informational opportunities so that the producers will 
                be better able to use financial management, crop 
                insurance, marketing contracts, and other existing and 
                emerging risk management tools; and
                    ``(G) to develop other risk management tools to 
                further increase economic and production stability.

    ``(e) Funding.--

[[Page 114 STAT. 383]]

            ``(1) Reimbursements.--Of the amounts made available from 
        the insurance fund established under section 516(c), the 
        Corporation may use to provide reimbursements under subsection 
        (b) not more than $10,000,000 for each of fiscal years 2001 and 
        2002 and not more than $15,000,000 for fiscal year 2003 and each 
        subsequent fiscal year.
            ``(2) Contracting.--
                    ``(A) Authority.--Of the amounts made available from 
                the insurance fund established under section 516(c), the 
                Corporation may use to carry out contracting and 
                partnerships under subsections (c) and (d) not more than 
                $20,000,000 for each of fiscal years 2001 through 2003 
                and not more than $25,000,000 for fiscal year 2004 and 
                each subsequent fiscal year.
                    ``(B) Underserved states.--Of the amount made 
                available under subparagraph (A) for a fiscal year, the 
                Corporation shall use not more than $5,000,000 for the 
                fiscal year to carry out contracting for research and 
                development to carry out the purpose described in 
                subsection (c)(1)(A).
            ``(3) Unused funding.--If the Corporation determines that 
        the amount available to provide either reimbursement payments or 
        contract payments under this section for a fiscal year is not 
        needed for such purposes, the Corporation may use the excess 
        amount to carry out another function authorized under this 
        section.
            ``(4) Prohibited research and development by corporation.--
                    ``(A) New policies.--Notwithstanding subsection (d), 
                on and after October 1, 2000, the Corporation shall not 
                conduct research and development for any new policy for 
                an agricultural commodity offered under this title.
                    ``(B) Existing policies.--Any policy developed by 
                the Corporation under this title before that date may 
                continue to be offered for sale to producers.''.

SEC. 132. PILOT PROGRAMS.

    (a) Authority.--The Federal Crop Insurance Act (7 U.S.C. 1501 et 
seq.), as amended by section 131, is amended by adding at the end the 
following:

``SEC. 523. <<NOTE: 7 USC 1523.>> PILOT PROGRAMS.

    ``(a) General Provisions.--
            ``(1) Authority.--Except as otherwise provided in this 
        section, the Corporation may conduct a pilot program submitted 
        to and approved by the Board under section 508(h), or that is 
        developed under subsection (b) or section 522, to evaluate 
        whether a proposal or new risk management tool tested by the 
        pilot program is suitable for the marketplace and addresses the 
        needs of producers of agricultural commodities.
            ``(2) Private coverage.--Under this section, the Corporation 
        shall not conduct any pilot program that provides insurance 
        protection against a risk if insurance protection against the 
        risk is generally available from private companies.
            ``(3) Covered activities.--The pilot programs described in 
        paragraph (1) may include pilot programs providing insurance 
        protection against losses involving--

[[Page 114 STAT. 384]]

                    ``(A) reduced forage on rangeland caused by drought 
                or insect infestation;
                    ``(B) livestock poisoning and disease;
                    ``(C) destruction of bees due to the use of 
                pesticides;
                    ``(D) unique special risks related to fruits, nuts, 
                vegetables, and specialty crops in general, aquacultural 
                species, and forest industry needs (including 
                appreciation);
                    ``(E) after October 1, 2001, wild salmon, except 
                that--
                          ``(i) any pilot program with regard to wild 
                      salmon may be carried out without regard to the 
                      limitations of this title; and
                          ``(ii) the Corporation shall conduct all wild 
                      salmon programs under this title so that, to the 
                      maximum extent practicable, all costs associated 
                      with conducting the programs are not expected to 
                      exceed $1,000,000 for fiscal year 2002 and each 
                      subsequent fiscal year.
            ``(4) Scope of pilot programs.--The Corporation may--
                    ``(A) approve a pilot program under this section to 
                be conducted on a regional, State, or national basis 
                after considering the interests of affected producers 
                and the interests of, and risks to, the Corporation;
                    ``(B) operate the pilot program, including any 
                modifications of the pilot program, for a period of up 
                to 4 years;
                    ``(C) extend the time period for the pilot program 
                for additional periods, as determined appropriate by the 
                Corporation; and
                    ``(D) provide pilot programs that would allow 
                producers--
                          ``(i) to receive a reduced premium for using 
                      whole farm units or single crop units of 
                      insurance; and
                          ``(ii) to cross State and county boundaries to 
                      form insurable units.
            ``(5) Evaluation.--
                    ``(A) Requirement.--After the completion of any 
                pilot program under this section, the Corporation shall 
                evaluate the pilot program and 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 operations of the pilot program.
                    ``(B) Evaluation and recommendations.--The report 
                shall include an evaluation by the Corporation of the 
                pilot program and the recommendations of the Corporation 
                with respect to implementing the program on a national 
                basis.

    ``(b) Livestock Pilot Programs.--
            ``(1) Definition of livestock.--In this subsection, the term 
        `livestock' includes, but is not limited to, cattle, sheep, 
        swine, goats, and poultry.
            ``(2) Programs required.--Subject to paragraph (7), the 
        Corporation shall conduct two or more pilot programs to evaluate 
        the effectiveness of risk management tools for livestock 
        producers, including the use of futures and options contracts 
        and policies and plans of insurance that protect the interests 
        of livestock producers and that provide--
                    ``(A) livestock producers with reasonable protection 
                from the financial risks of price or income fluctuations 
                inherent in the production and marketing of livestock; 
                or
                    ``(B) protection for production losses.

[[Page 114 STAT. 385]]

            ``(3) Purpose of programs.--To the maximum extent 
        practicable, the Corporation shall evaluate the greatest number 
        and variety of pilot programs described in paragraph (2) to 
        determine which of the offered risk management tools are best 
        suited to protect livestock producers from the financial risks 
        associated with the production and marketing of livestock.
            ``(4) Timing.--The Corporation shall begin conducting 
        livestock pilot programs under this subsection during fiscal 
        year 2001.
            ``(5) Relation to other limitations.--Any policy or plan of 
        insurance offered under this subsection may be prepared without 
        regard to the limitations of this title.
            ``(6) Assistance.--As part of a pilot program under this 
        subsection, the Corporation may provide reinsurance for policies 
        or plans of insurance and subsidize the purchase of futures and 
        options contracts or policies and plans of insurance offered 
        under the pilot program.
            ``(7) Private insurance.--No action may be undertaken with 
        respect to a risk under this subsection if the Corporation 
        determines that insurance protection for livestock producers 
        against the risk is generally available from private companies.
            ``(8) Location.--The Corporation shall conduct the livestock 
        pilot programs under this subsection in a number of counties 
        that is determined by the Corporation to be adequate to provide 
        a comprehensive evaluation of the feasibility, effectiveness, 
        and demand among producers for the risk management tools 
        evaluated in the pilot programs.
            ``(9) Eligible producers.--Any producer of a type of 
        livestock covered by a pilot program under this subsection that 
        owns or operates a farm or ranch in a county selected as a 
        location for that pilot program shall be eligible to participate 
        in that pilot program.
            ``(10) Limitation on expenditures.--The Corporation shall 
        conduct all livestock programs under this title so that, to the 
        maximum extent practicable, all costs associated with conducting 
        the livestock programs (other than research and development 
        costs covered by section 522) are not expected to exceed the 
        following:
                    ``(A) $10,000,000 for each of fiscal years 2001 and 
                2002.
                    ``(B) $15,000,000 for fiscal year 2003.
                    ``(C) $20,000,000 for fiscal year 2004 and each 
                subsequent fiscal year.

    ``(c) Revenue Insurance Pilot Program.--
            ``(1) In general.--Subject to section 522(e)(4), the 
        Secretary shall carry out a pilot program in a limited number of 
        counties, as determined by the Secretary, for crop years 1997 
        through 2001, under which a producer of wheat, feed grains, 
        soybeans, or such other commodity as the Secretary considers 
        appropriate may elect to receive insurance against loss of 
        revenue, as determined by the Secretary.
            ``(2) Administration.--Revenue insurance under this 
        subsection shall--
                    ``(A) be offered through reinsurance arrangements 
                with private insurance companies;
                    ``(B) offer at least a minimum level of coverage 
                that is an alternative to catastrophic crop insurance;
                    ``(C) be actuarially sound; and

[[Page 114 STAT. 386]]

                    ``(D) require the payment of premiums and 
                administrative fees by an insured producer.

    ``(d) Premium Rate Reduction Pilot Program.--
            ``(1) Purpose.--The purpose of the pilot program established 
        under this subsection is to determine whether approved insurance 
        providers will compete to market policies or plans of insurance 
        with reduced rates of premium, in a manner that maintains the 
        financial soundness of approved insurance providers and is 
        consistent with the integrity of the Federal crop insurance 
        program.
            ``(2) Establishment.--
                    ``(A) In general.--Beginning with the 2002 crop 
                year, the Corporation shall establish a pilot program 
                under which approved insurance providers may propose for 
                approval by the Board policies or plans of insurance 
                with reduced rates of premium--
                          ``(i) for one or more agricultural 
                      commodities; and
                          ``(ii) within a limited geographic area, as 
                      proposed by the approved insurance provider and 
                      approved by the Board.
                    ``(B) Determination by board.--The Board shall 
                approve a policy or plan of insurance proposed under 
                this subsection that involves a premium reduction if the 
                Board determines that--
                          ``(i) the interests of producers are 
                      adequately protected within the pilot area;
                          ``(ii) rates of premium are actuarially 
                      appropriate, as determined by the Board;
                          ``(iii) the size of the proposed pilot area is 
                      adequate;
                          ``(iv) the proposed policy or plan of 
                      insurance would not unfairly discriminate among 
                      producers within the proposed pilot area;
                          ``(v) if the proposed policy or plan of 
                      insurance were available in a geographic area 
                      larger than the proposed pilot area, the proposed 
                      policy or plan of insurance would--
                                    ``(I) not have a significant adverse 
                                impact on the crop insurance delivery 
                                system;
                                    ``(II) not result in a reduction of 
                                program 
                                integrity;
                                    ``(III) be actuarially appropriate; 
                                and
                                    ``(IV) not place an additional 
                                financial burden on the Federal 
                                Government; and
                          ``(vi) the proposed policy or plan of 
                      insurance meets other requirements of this title 
                      determined appropriate by the Board.
                    ``(C) Time limitations and procedures.--The time 
                limitations and procedures of the Board established 
                under section 508(h) shall apply to a proposal submitted 
                under this subsection.''.

    (b) Conforming Amendments.--Section 518 of the Federal Crop 
Insurance Act (7 U.S.C. 1518) is amended--
            (1) by striking ``livestock and'' after ``commodity, 
        excluding''; and
            (2) by striking ``under subsection (a) or (m) of section 508 
        of this title''.

[[Page 114 STAT. 387]]

SEC. 133. EDUCATION AND RISK MANAGEMENT ASSISTANCE.

    The Federal Crop Insurance Act (7 U.S.C. 1501 et seq.), as amended 
by section 132(a), is amended by adding at the end the following:

``SEC. 524. <<NOTE: 7 USC 1524.>> EDUCATION AND RISK MANAGEMENT 
            ASSISTANCE.

    ``(a) Education Assistance.--
            ``(1) In general.--Subject to the amounts made available 
        under paragraph (4)--
                    ``(A) the Corporation shall carry out the program 
                established under paragraph (2); and
                    ``(B) the Secretary, acting through the Cooperative 
                State Research, Education, and Extension Service, shall 
                carry out the program established under paragraph (3).
            ``(2) Education and information.--The Corporation shall 
        establish a program under which crop insurance education and 
        information is provided to producers in States in which (as 
        determined by the Secretary)--
                    ``(A) there is traditionally, and continues to be, a 
                low level of Federal crop insurance participation and 
                availability; and
                    ``(B) producers are underserved by the Federal crop 
                insurance program.
            ``(3) Partnerships for risk management education.--
                    ``(A) Authority.--The Secretary, acting through the 
                Cooperative State Research, Education, and Extension 
                Service, shall establish a program under which 
                competitive grants are made to qualified public and 
                private entities (including land grant colleges, 
                cooperative extension services, and colleges or 
                universities), as determined by the Secretary, for the 
                purpose of educating agricultural producers about the 
                full range of risk management activities, including 
                futures, options, agricultural trade options, crop 
                insurance, cash forward contracting, debt reduction, 
                production diversification, farm resources risk 
                reduction, and other risk management strategies.
                    ``(B) Basis for grants.--A grant under this 
                paragraph shall be awarded on the basis of merit and 
                shall be subject to peer or merit review.
                    ``(C) Obligation period.--Funds for a grant under 
                this paragraph shall be available to the Secretary for 
                obligation for a 2-year period.
                    ``(D) Administrative costs.--The Secretary may use 
                not more than 4 percent of the funds made available for 
                grants under this paragraph for administrative costs 
                incurred by the Secretary in carrying out this 
                paragraph.
            ``(4) Funding.--From the insurance fund established under 
        section 516(c), there is transferred--
                    ``(A) for the education and information program 
                established under paragraph (2), $5,000,000 for fiscal 
                year 2001 and each subsequent fiscal year; and
                    ``(B) for the partnerships for risk management 
                education program established under paragraph (3), 
                $5,000,000 for fiscal year 2001 and each subsequent 
                fiscal year.

    ``(b) Agricultural Management Assistance.--

[[Page 114 STAT. 388]]

            ``(1) Authority.--The Secretary shall provide cost share 
        assistance to producers, in a manner determined by the 
        Secretary, in not less than 10, nor more than 15, States in 
        which participation in the Federal crop insurance program is 
        historically low, as determined by the Secretary.
            ``(2) Uses.--A producer may use cost share assistance 
        provided under this subsection to--
                    ``(A) construct or improve--
                          ``(i) watershed management structures; or
                          ``(ii) irrigation structures;
                    ``(B) plant trees to form windbreaks or to improve 
                water quality;
                    ``(C) mitigate financial risk through production 
                diversification or resource conservation practices, 
                including--
                          ``(i) soil erosion control;
                          ``(ii) integrated pest management; or
                          ``(iii) transition to organic farming;
                    ``(D) enter into futures, hedging, or options 
                contracts in a manner designed to help reduce 
                production, price, or revenue risk;
                    ``(E) enter into agricultural trade options as a 
                hedging transaction to reduce production, price, or 
                revenue risk; or
                    ``(F) conduct any other activity related to the 
                activities described in subparagraphs (A) through (E), 
                as determined by the Secretary.
            ``(2) Payment limitation.--The total amount of payments made 
        to a person (as defined in section 1001(5) of the Food Security 
        Act (7 U.S.C. 1308(5))) under this subsection for any year may 
        not exceed $50,000.
            ``(3) Commodity credit corporation.--
                    ``(A) In general.--The Secretary shall carry out 
                this subsection through the Commodity Credit 
                Corporation.
                    ``(B) Funding.--The Commodity Credit Corporation 
                shall make available to carry out this subsection 
                $10,000,000 for fiscal year 2001 and each subsequent 
                fiscal year.''.

SEC. 134. OPTIONS PILOT PROGRAM.

    Section 191 of the Agricultural Market Transition Act (7 U.S.C. 
7331) is amended--
            (1) in the first sentence of subsection (b), by striking 
        ``100 counties, except that not more than 6'' and inserting 
        ``300 counties, except that not more than 25'';
            (2) in subsection (c)(2), by inserting before the semicolon 
        the following: ``during any calendar year in which a county in 
        which the farm of the producer is located is included in the 
        pilot program''; and
            (3) in the first sentence of subsection (h), by inserting 
        before the period at the end the following: ``, except that the 
        amount of Commodity Credit Corporation funds used to carry out 
        this section shall not exceed, to the maximum extent 
        practicable, $9,000,000 for fiscal year 2001, $15,000,000 for 
        fiscal year 2002, and $2,000,000 for fiscal year 2003''.

[[Page 114 STAT. 389]]

                       Subtitle D--Administration

SEC. 141. RELATION TO OTHER LAWS.

    Section 502 of the Federal Crop Insurance Act (7 U.S.C. 1502), as 
amended by section 122, is amended by adding at the end the following:
    ``(d) Relation to Other Laws.--
            ``(1) Terms and conditions of policies and plans.--The terms 
        and conditions of any policy or plan of insurance offered under 
        this title that is reinsured by the Corporation shall not--
                    ``(A) be subject to the jurisdiction of the 
                Commodity Futures Trading Commission or the Securities 
                and Exchange Commission; or
                    ``(B) be considered to be accounts, agreements 
                (including any transaction that is of the character of, 
                or is commonly known to the trade as, an `option', 
                `privilege', `indemnity', `bid', `offer', `put', `call', 
                `advance guaranty', or `decline guaranty'), or 
                transactions involving contracts of sale of a commodity 
                for future delivery, traded or executed on a contract 
                market for the purposes of the Commodity Exchange Act (7 
                U.S.C. 1 et seq.).
            ``(2) Effect on cftc and commodity exchange act.--Nothing in 
        this title affects the jurisdiction of the Commodity Futures 
        Trading Commission or the applicability of the Commodity 
        Exchange Act (7 U.S.C. 1 et seq.) to any transaction conducted 
        on a contract market under that Act by an approved insurance 
        provider to offset the approved insurance provider's risk under 
        a plan or policy of insurance under this title.''.

SEC. 142. MANAGEMENT OF CORPORATION.

    (a) Board of Directors of Corporation.--
            (1) Change in composition.--Section 505 of the Federal Crop 
        Insurance Act (7 U.S.C. 1505) is amended by striking the section 
        heading, ``Sec. 505.'', and subsection (a) and inserting the 
        following:

``SEC. 505. MANAGEMENT OF CORPORATION.

    ``(a) Board of Directors.--
            ``(1) Establishment.--The management of the Corporation 
        shall be vested in a Board of Directors subject to the general 
        supervision of the Secretary.
            ``(2) Composition.--The Board shall consist of only the 
        following members:
                    ``(A) The manager of the Corporation, who shall 
                serve as a nonvoting ex officio member.
                    ``(B) The Under Secretary of Agriculture responsible 
                for the Federal crop insurance program.
                    ``(C) One additional Under Secretary of Agriculture 
                (as designated by the Secretary).
                    ``(D) The Chief Economist of the Department of 
                Agriculture.
                    ``(E) One person experienced in the crop insurance 
                business.
                    ``(F) One person experienced in reinsurance or the 
                regulation of insurance.

[[Page 114 STAT. 390]]

                    ``(G) Four active producers who are policy holders, 
                are from different geographic areas of the United 
                States, and represent a cross-section of agricultural 
                commodities grown in the United States, including at 
                least one specialty crop producer.
            ``(3) Appointment of private sector members.--The members of 
        the Board described in subparagraphs (E), (F), and (G) of 
        paragraph (2)--
                    ``(A) shall be appointed by, and hold office at the 
                pleasure of, the Secretary;
                    ``(B) shall not be otherwise employed by the Federal 
                Government;
                    ``(C) shall be appointed to staggered 4-year terms, 
                as determined by the Secretary; and
                    ``(D) shall serve not more than two consecutive 
                terms.
            ``(4) Chairperson.--The Board shall select a member of the 
        Board to serve as Chairperson.''.
            (2) Implementation.--The <<NOTE: 7 USC 1505 note.>> initial 
        members of the Board of Directors of the Federal Crop Insurance 
        Corporation required to be appointed under section 505(a)(3) of 
        the Federal Crop Insurance Act (as amended by paragraph (1)) 
        shall be appointed during the period beginning February 1, 2001, 
        and ending April 1, 2001.
            (3) Effect on <<NOTE: 7 USC 1505 note.>> existing board.--A 
        member of the Board of Directors of the Federal Crop Insurance 
        Corporation on the date of the enactment of this Act may 
        continue to serve as a member of the Board until the members 
        referred to in paragraph (2) are first appointed.

    (b) Expert Review of Policies, Plans of Insurance, and Related 
Material.--Section 505 of the Federal Crop Insurance Act (7 U.S.C. 1505) 
is amended by adding at the end the following:
    ``(e) Expert Review of Policies, Plans of Insurance, and Related 
Material.--
            ``(1) Review by experts.--The Board shall establish 
        procedures under which any policy or plan of insurance, as well 
        as any related material or modification of such a policy or plan 
        of insurance, to be offered under this title shall be subject to 
        independent reviews by persons experienced as actuaries and in 
        underwriting, as determined by the Board.
            ``(2) Review of corporation policies and plans.--Except as 
        provided in paragraph (3), the Board shall contract with at 
        least five persons to each conduct a review of the policy or 
        plan of insurance, of whom--
                    ``(A) not more than one person may be employed by 
                the Federal Government; and
                    ``(B) at least one person must be designated by 
                approved insurance providers pursuant to procedures 
                determined by the Board.
            ``(3) Review of private submissions.--If the reviews under 
        paragraph (1) cover a policy or plan of insurance, or any 
        related material or modification of a policy or plan of 
        insurance, submitted under section 508(h)--
                    ``(A) the Board shall contract with at least five 
                persons to each conduct a review of the policy or plan 
                of insurance, of whom--
                          ``(i) not more than one person may be employed 
                      by the Federal Government; and

[[Page 114 STAT. 391]]

                          ``(ii) none may be employed by an approved 
                      insurance provider; and
                    ``(B) <<NOTE: Deadline.>> each review must be 
                completed and submitted to the Board not later than 30 
                days prior to the end of the 120-day period described in 
                section 508(h)(4)(D).
            ``(4) Consideration of reviews.--The Board shall include 
        reviews conducted under this subsection as part of the 
        consideration of any policy or plan or insurance, or any related 
        material or modification of a policy or plan of insurance, 
        proposed to be offered under this title.
            ``(5) Funding of reviews.--Each contract to conduct a review 
        under this subsection shall be funded from amounts made 
        available under section 516(b)(2)(A)(ii).
            ``(6) Relation to other authority.--The contract authority 
        provided in this subsection is in addition to any other 
        contracting authority that may be exercised by the Board under 
        section 506(l).''.

SEC. 143. CONTRACTING FOR RATING OF PLANS OF INSURANCE.

    Section 507(c)(2) of the Federal Crop Insurance Act (7 U.S.C. 
1507(c)(2)) is amended--
            (1) by striking ``actuarial, loss adjustment,'' and 
        inserting ``actuarial services, services relating to loss 
        adjustment and rating plans of insurance,''; and
            (2) by inserting after ``private sector'' the following: 
        ``and to enable the Corporation to concentrate on regulating the 
        provision of insurance under this title and evaluating new 
        products and materials submitted under section 508(h) or 523''.

SEC. 144. ELECTRONIC AVAILABILITY OF CROP INSURANCE INFORMATION.

    Section 508(a)(5) of the Federal Crop Insurance Act (7 U.S.C. 
1508(a)(5)) is amended--
            (1) by redesignating subparagraphs (A) and (B) as clauses 
        (i) and (ii), respectively, and moving such clauses 2 ems to the 
        right;
            (2) by striking ``The Corporation'' and inserting the 
        following:
                    ``(A) Available information.--The Corporation''; and
            (3) by adding at the end the following:
                    ``(B) Use of electronic methods.--
                          ``(i) Dissemination by corporation.--The 
                      Corporation shall make the information described 
                      in subparagraph (A) available electronically to 
                      producers and approved insurance providers.
                          ``(ii) Submission to corporation.--To the 
                      maximum extent practicable, the Corporation shall 
                      allow producers and approved insurance providers 
                      to use electronic methods to submit information 
                      required by the Corporation.''.

SEC. 145. ADEQUATE COVERAGE FOR STATES.

    Section 508(a) of the Federal Crop Insurance Act (7 U.S.C. 1508(a)) 
is amended by adding at the end the following:
            ``(7) Adequate coverage for states.--

[[Page 114 STAT. 392]]

                    ``(A) Definition of adequately served.--In this 
                paragraph, the term `adequately served' means having a 
                participation rate that is at least 50 percent of the 
                national average participation rate.
                    ``(B) Review.--The Board shall review the policies 
                and plans of insurance that are offered by approved 
                insurance providers under this title to determine if 
                each State is adequately served by the policies and 
                plans of insurance.
                    ``(C) Report.--
                          ``(i) In <<NOTE: Deadline.>> general.--Not 
                      later than 30 days after completion of the review 
                      under subparagraph (B), the Board shall submit to 
                      Congress a report on the results of the review.
                          ``(ii) Recommendations.--The report shall 
                      include recommendations to increase participation 
                      in States that are not adequately served by the 
                      policies and plans of insurance.''.

SEC. 146. SUBMISSION OF POLICIES AND MATERIALS TO BOARD.

    (a) Persons Authorized To Submit.--Section 508(h)(1) of the Federal 
Crop Insurance Act (7 U.S.C. 1508(h)(1)) is amended by inserting after 
``a person'' the following: ``(including an approved insurance provider, 
a college or university, a cooperative or trade association, or any 
other person)''.
    (b) Sale by Approved Insurance Providers.--Section 508(h)(3) of the 
Federal Crop Insurance Act (7 U.S.C. 1508(h)(3)) is amended in the first 
sentence by inserting after ``for sale'' the following: ``by approved 
insurance providers''.
    (c) Guidelines for Submission and Review.--Section 508(h)(4) of the 
Federal Crop Insurance Act (7 U.S.C. 1508(h)(4)) is amended--
            (1) by striking subparagraph (A) and inserting the 
        following:
                    ``(A) Confidentiality.--
                          ``(i) In general.--A proposal submitted to the 
                      Board under this subsection (including any 
                      information generated from the proposal) shall be 
                      considered to be confidential commercial or 
                      financial information for the purposes of section 
                      552(b)(4) of title 5, United States Code.
                          ``(ii) Standard of confidentiality.--If 
                      information concerning a proposal could be 
                      withheld by the Secretary under the standard for 
                      privileged or confidential information pertaining 
                      to trade secrets and commercial or financial 
                      information under section 552(b)(4) of title 5, 
                      United States Code, the information shall not be 
                      released to the public.
                          ``(iii) Application.--This subparagraph shall 
                      apply with respect to a proposal only during the 
                      period preceding any approval of the proposal by 
                      the Board.'';
            (2) in subparagraph (B), by inserting ``Personal 
        presentation.--'' before ``The''; and
            (3) by striking subparagraphs (C) and (D) and inserting the 
        following:
                    ``(C) Notification of intent to disapprove.--
                          ``(i) Time <<NOTE: Deadline.>> period.--The 
                      Board shall provide an applicant with notification 
                      of intent to disapprove a

[[Page 114 STAT. 393]]

                      proposal not later than 30 days prior to making 
                      the disapproval.
                          ``(ii) Modification of application.--
                                    ``(I) Authority.--An applicant that 
                                receives the notification may modify the 
                                application, and such application, as 
                                modified, shall be considered by the 
                                Board in the manner provided in 
                                subparagraph (D) within the 30-day 
                                period beginning on the date the 
                                modified application is submitted.
                                    ``(II) Time period.--Clause (i) 
                                shall not apply to the Board's 
                                consideration of the modified 
                                application.
                          ``(iii) Explanation.--Any notification of 
                      intent to disapprove a policy or other material 
                      submitted under this subsection shall be 
                      accompanied by a complete explanation as to the 
                      reasons for the Board's intention to deny 
                      approval.
                    ``(D) Determination to approve or disapprove 
                policies or materials.--
                          ``(i) Time <<NOTE: Deadline.>> period.--Not 
                      later than 120 days after a policy or other 
                      material is submitted under this subsection, the 
                      Board shall make a determination to approve or 
                      disapprove the policy or material.
                          ``(ii) Explanation.--Any determination by the 
                      Board to disapprove any policy or other material 
                      shall be accompanied by a complete explanation of 
                      the reasons for the Board's decision to deny 
                      approval.
                          ``(iii) Failure to meet deadline.--
                      Notwithstanding any other provision of this title, 
                      if the Board fails to make a determination within 
                      the prescribed time period, the submitted policy 
                      or other material shall be deemed approved by the 
                      Board for the initial reinsurance year designated 
                      for the policy or material, unless the Board and 
                      the applicant agree to an extension.''.

    (d) Technical Amendments.--Section 508(h) of the Federal Crop 
Insurance Act (7 U.S.C. 1508(h)) is amended--
            (1) by striking paragraphs (6), (8), (9), and (10); and
            (2) by redesignating paragraph (7) as paragraph (6).

SEC. 147. FUNDING.

    (a) Authorization of Appropriations.--Section 516(a)(2) of the 
Federal Crop Insurance Act (7 U.S.C. 1516(a)(2)) is amended--
            (1) by striking ``years--'' and inserting ``years the 
        following:'';
            (2) by capitalizing the first letter of the first word of 
        each subparagraph;
            (3) by striking ``; and'' at the end of subparagraph (A) and 
        inserting a period; and
            (4) by adding at the end the following:
                    ``(C) Costs associated with the conduct of livestock 
                and wild salmon pilot programs carried out under section 
                523, subject to the limitations in subsections 
                (a)(3)(E)(ii) and (b)(10) of section 523.
                    ``(D) Costs associated with the reimbursement, 
                contracting, and partnerships for research and 
                development under section 522.''.

[[Page 114 STAT. 394]]

    (b) Payment of General Corporation Expenses From Insurance Fund.--
Section 516(b)(1) of the Federal Crop Insurance Act (7 U.S.C. 
1516(b)(1)) is amended--
            (1) by striking ``including--'' and inserting ``including 
        the following:'';
            (2) by capitalizing the first letter of the first word of 
        each subparagraph;
            (3) by striking the semicolon at the end of subparagraph (A) 
        and inserting a period;
            (4) by striking ``; and'' at the end of subparagraph (B) and 
        inserting a period; and
            (5) by adding at the end the following:
                    ``(D) Costs associated with the conduct of livestock 
                and wild salmon pilot programs carried out under section 
                523, subject to the limitations in subsections 
                (a)(3)(E)(ii) and (b)(10) of section 523.
                    ``(E) Costs associated with the reimbursement, 
                contracting, and partnerships for research and 
                development under section 522.''.

    (c) Expedited Consideration and Implementation of Policies, Plans of 
Insurance, and Related Materials.--Section 516(b)(2) of the Federal Crop 
Insurance Act (7 U.S.C. 1516(b)(2)) is amended--
            (1) by striking ``Research and development ex-
        penses.--'' and inserting ``Policy consideration and 
        implementation.--'';
            (2) in subparagraph (A)--
                    (A) by striking ``may pay from'' and inserting ``may 
                use'';
                    (B) by striking ``research and development expenses 
                of the Corporation''; and
                    (C) by striking the period at the end and inserting 
                the following: ``, to pay the following:
                          ``(i) Costs associated with the consideration 
                      and implementation of policies, plans of 
                      insurance, and related materials submitted under 
                      section 508(h) or developed under section 522 or 
                      523.
                          ``(ii) Costs to contract for the review of 
                      policies, plans of insurance, and related 
                      materials under section 505(e) and to contract for 
                      other assistance in considering policies, plans of 
                      insurance, and related materials.''; and
            (3) in subparagraph (B), by striking ``research and 
        development''.

    (d) Deposits to Insurance Fund.--Section 516(c)(1) of the Federal 
Crop Insurance Act (7 U.S.C. 1516(c)(1)) is amended--
            (1) by striking ``income and'' and inserting ``income,''; 
        and
            (2) by inserting ``, and civil fines collected under section 
        515(h)'' after ``(a)(2)''.

SEC. 148. <<NOTE: 7 USC 1506 note.>> STANDARD REINSURANCE AGREEMENT.

    Notwithstanding section 536 of the Agricultural Research, Extension, 
and Education Reform Act of 1998 (7 U.S.C. 1506 note; Public Law 105-
185), the Federal Crop Insurance Corporation may renegotiate the 
Standard Reinsurance Agreement once during the 2001 through 2005 
reinsurance years.

[[Page 114 STAT. 395]]

                        Subtitle E--Miscellaneous

SEC. 161. LIMITATION ON REVENUE COVERAGE FOR POTATOES.

    Section 508(a)(3) of the Federal Crop Insurance Act (7 U.S.C. 
1508(a)(3)), as amended by section 123, is amended by adding at the end 
the following:
                    ``(C) Limitation on revenue coverage for potatoes.--
                No policy or plan of insurance provided under this title 
                (including a policy or plan of insurance approved by the 
                Board under subsection (h)) shall cover losses due to a 
                reduction in revenue for potatoes except as covered 
                under a whole farm policy or plan of insurance, as 
                determined by the Corporation.''.

SEC. 162. CROP INSURANCE COVERAGE FOR COTTON AND RICE.

    Section 508(a) of the Federal Crop Insurance Act (7 U.S.C. 1508(a)), 
as amended by 145, is amended by adding at the end the following:
            ``(8) Special provisions for cotton and rice.--
        Notwithstanding any other provision of this title, beginning 
        with the 2001 crops of upland cotton, extra long staple cotton, 
        and rice, the Corporation shall offer plans of insurance, 
        including prevented planting coverage and replanting coverage, 
        under this title that cover losses of upland cotton, extra long 
        staple cotton, and rice resulting from failure of irrigation 
        water supplies due to drought and saltwater intrusion.''.

SEC. 163. INDEMNITY PAYMENTS FOR CERTAIN PRODUCERS.

    (a) In General.--Except as otherwise provided in this section, 
notwithstanding section 508(c)(5) of the Federal Crop Insurance Act (7 
U.S.C. 1508(c)(5)), a producer that purchased a 1999 Crop Revenue 
Coverage policy for a commodity covered by Bulletin MGR-99-004 (as in 
effect before being voided by subsection (d)) by the sales closing date 
prescribed in the actuarial documents in the county where the policy was 
sold shall receive an indemnity payment in accordance with the policy.
    (b) Base and Harvest Prices.--The base price and harvest price under 
the policy for a commodity described in subsection (a) shall be 
determined in accordance with the Commodity Exchange Endorsement 
published by the Federal Crop Insurance Corporation on July 14, 1998 (63 
Fed. Reg. 37829).
    (c) Reinsurance.--Subject to subsection (b), notwithstanding section 
508(c)(5) of the Federal Crop Insurance Act (7 U.S.C. 1508(c)(5)), the 
Corporation shall provide reinsurance with respect to the policy in 
accordance with the Standard Reinsurance Agreement.
    (d) Voiding of Bulletin.--Bulletin MGR-99-004, issued by the 
Administrator of the Risk Management Agency of the Department of 
Agriculture, is void.
    (e) Effective Date.--This section takes effect on October 1, 2000.

SEC. 164. SENSE OF THE CONGRESS REGARDING THE FEDERAL CROP INSURANCE 
            PROGRAM.

    It is the sense of the Congress that--

[[Page 114 STAT. 396]]

            (1) farmer-owned cooperatives play a valuable role in 
        achieving the purposes of the Federal Crop Insurance Act (7 
        U.S.C. 1501 et seq.) by--
                    (A) encouraging producer participation in the 
                Federal crop insurance program;
                    (B) improving the delivery system for crop 
                insurance; and
                    (C) helping to develop new and improved insurance 
                products;
            (2) the Risk Management Agency, through its regulatory 
        activities, should encourage efforts by farmer-owned 
        cooperatives to promote appropriate risk management strategies 
        among their membership;
            (3) partnerships between approved insurance providers and 
        farmer-owned cooperatives provide opportunity for agricultural 
        producers to obtain needed insurance coverage on a more 
        competitive basis and at a lower cost;
            (4) the Risk Management Agency is following an appropriate 
        regulatory process to ensure the continued participation by 
        farmer-owned cooperatives in the delivery of crop insurance;
            (5) efforts by the Risk Management Agency to finalize 
        regulations that would incorporate the currently approved 
        business practices of cooperatives participating in the Federal 
        crop insurance program should be commended; and
            (6) <<NOTE: Deadline.>> not later than 180 days after the 
        date of the enactment of this Act, the Federal Crop Insurance 
        Corporation should complete promulgation of the proposed rule 
        entitled ``General Administrative Regulations; Premium 
        Reductions; Payment of Rebates, Dividends, and Patronage 
        Refunds; and Payments to Insured-Owned and Record-Controlling 
        Entities'', published by the Federal Crop Insurance Corporation 
        on May 12, 1999 (64 Fed. Reg. 25464), in a manner that--
                    (A) effectively responds to comments received from 
                the public during the rulemaking process;
                    (B) provides an effective opportunity for farmer-
                owned cooperatives to assist the members of the 
                cooperatives to obtain crop insurance and participate 
                most effectively in the Federal crop insurance program;
                    (C) incorporates the currently approved business 
                practices of farmer-owned cooperatives participating in 
                the Federal crop insurance program; and
                    (D) protects the interests of agricultural 
                producers.

SEC. 165. SENSE OF THE CONGRESS ON RURAL AMERICA, INCLUDING MINORITY AND 
            LIMITED-RESOURCE FARMERS.

    It is the sense of the Congress that--
            (1) rural America, including minority and limited resource 
        farmers, has not experienced this recent period of economic 
        prosperity;
            (2) as a result of sustained low commodity prices, they face 
        significant challenges, including--
                    (A) a depressed farm economy;
                    (B) a loss of business and jobs on rural main 
                streets;
                    (C) a reduction of capital investment; and
                    (D) a loss of independent farmers;
            (3) Congress applauds American farmers and rural advocates, 
        including the organizers of the Rally for Rural America,

[[Page 114 STAT. 397]]

        for their efforts in calling this situation to the public's 
        attention; and
            (4) Congress is committed to responding to the concerns of 
        rural America and pledges to devote full attention to making 
        necessary changes to Federal agricultural programs in a manner 
        that will--
                    (A) alleviate the agricultural price crisis;
                    (B) ensure competitive markets by empowering farm 
                families;
                    (C) ensure that all farmers, including minority and 
                limited-resource farmers, participate fully in the 
                benefits of those programs;
                    (D) invest in rural education and health;
                    (E) increase resources for outreach and technical 
                farming assistance;
                    (F) conserve our natural resources for future 
                generations; and
                    (G) ensure a safe and secure food supply for all.

             Subtitle F--Effective Dates and Implementation

SEC. 171. <<NOTE: 7 USC 1501 note.>> EFFECTIVE DATES.

    (a) In General.--Except as provided in subsection (b), this Act and 
the amendments made by this Act take effect on the date of the enactment 
of this Act.
    (b) Exceptions.--
            (1) 2001 fiscal year.--The following provisions and the 
        amendments made by the provisions take effect on October 1, 
        2000:
                    (A) Subtitle C.
                    (B) Section 146.
                    (C) Section 163.
            (2) 2001 crop year.--The amendments made by the following 
        provisions apply beginning with the 2001 crop of an agricultural 
        commodity:
                    (A) Subsections (a), (b), and (c) of section 101.
                    (B) Section 102(a).
                    (C) Subsections (a), (b), and (c) of section 103.
                    (D) Section 104.
                    (E) Section 105(b).
                    (F) Section 108.
                    (G) Section 109.
                    (H) Section 162.
            (3) 2001 reinsurance year.--The amendments made by the 
        following provisions apply beginning with the 2001 reinsurance 
        year:
                    (A) Section 101(d).
                    (B) Section 102(b).
                    (C) Section 103(d).

SEC. 172. <<NOTE: 7 USC 1501 note.>> REGULATIONS.

    Not later than <<NOTE: Deadline.>> 120 days after the date of the 
enactment of this Act, the Secretary of Agriculture shall promulgate 
regulations to carry out this Act and the amendments made by this Act.

[[Page 114 STAT. 398]]

SEC. 173. <<NOTE: 7 USC 1501 note.>> SAVINGS CLAUSE.

    The Federal Crop Insurance Act (7 U.S.C. 1501 et seq.) and section 
196 of the Federal Agriculture Improvement and Reform Act of 1996 (7 
U.S.C. 7333), as in effect on day before the date of the enactment of 
this Act, shall--
            (1) continue to apply with respect to the 1999 crop year; 
        and
            (2) apply with respect to the 2000 crop year, to the extent 
        the application of an amendment made by this Act is delayed 
        under section 171(b) or by the terms of the amendment.

                    TITLE II--AGRICULTURAL ASSISTANCE

                   Subtitle A--Market Loss Assistance

SEC. 201. MARKET <<NOTE: 7 USC 1421 note.>> LOSS ASSISTANCE.

    (a) In General.--The Secretary of Agriculture (referred to in this 
title as the ``Secretary'') shall use funds of the Commodity Credit 
Corporation to provide assistance in the form of a market loss 
assistance payment to owners and producers on a farm that are eligible 
for a final payment for fiscal year 2000 under a production flexibility 
contract for the farm under the Agricultural Market Transition Act (7 
U.S.C. 7201 et seq.).
    (b) Amount and Manner.--In providing payments under this section, 
the Secretary shall--
            (1) use the same contract payment rates as are used under 
        section 802(b) of the Agriculture, Rural Development, Food and 
        Drug Administration, and Related Agencies Appropriations Act, 
        2000 (7 U.S.C. 1421 note; Public Law 106-78); and
            (2) provide the payments in a manner that is consistent with 
        section 802(c) of that Act.

    (c) Timing.--The <<NOTE: Deadline.>> Secretary shall make the 
payments required by this section not earlier than September 1, 2000, 
and not later than September 30, 2000.

SEC. 202. <<NOTE: 7 USC 1421 note.>> OILSEEDS.

    (a) In General.--The Secretary shall use $500,000,000 of funds of 
the Commodity Credit Corporation to make payments to producers of the 
2000 crop of oilseeds that are eligible to obtain a marketing assistance 
loan under section 131 of the Agricultural Market Transition Act (7 
U.S.C. 7231).
    (b) Computation.--A payment to producers on a farm under this 
section for an oilseed shall be equal to the product obtained by 
multiplying--
            (1) a payment rate determined by the Secretary;
            (2) the acreage of the producers on the farm for the 
        oilseed, as determined under subsection (c); and
            (3) the yield of the producers on the farm for the oilseed, 
        as determined under subsection (d).

    (c) Acreage.--
            (1) In general.--Except as provided in paragraph (2), the 
        acreage of the producers on the farm for an oilseed under 
        subsection (b)(2) shall be equal to the number of acres planted 
        to the oilseed by the producers on the farm during the 1997, 
        1998, or 1999 crop year, whichever is greatest, as reported

[[Page 114 STAT. 399]]

        by the producers on the farm to the Secretary (including any 
        acreage reports that are filed late).
            (2) New producers.--In the case of producers on a farm that 
        planted acreage to an oilseed during the 2000 crop year but not 
        the 1997, 1998, or 1999 crop year, the acreage of the producers 
        for the oilseed under subsection (b)(2) shall be equal to the 
        number of acres planted to the oilseed by the producers on the 
        farm during the 2000 crop year, as reported by the producers on 
        the farm to the Secretary (including any acreage reports that 
        are filed late).

    (d) Yield.--
            (1) Soybeans.--Except as provided in paragraph (3), in the 
        case of soybeans, the yield of the producers on a farm under 
        subsection (b)(3) shall be equal to the greatest of--
                    (A) the average county yield per harvested acre for 
                each of the 1995 through 1999 crop years, excluding the 
                crop year with the highest yield per harvested acre and 
                the crop year with the lowest yield per harvested acre; 
                or
                    (B) the actual yield of the producers on the farm 
                for the 1997, 1998, or 1999 crop year.
            (2) Other oilseeds.--Except as provided in paragraph (3), in 
        the case of oilseeds other than soybeans, the yield of the 
        producers on a farm under subsection (b)(3) shall be equal to 
        the greatest of--
                    (A) the average national yield per harvested acre 
                for each of the 1995 through 1999 crop years, excluding 
                the crop year with the highest yield per harvested acre 
                and the crop year with the lowest yield per harvested 
                acre; or
                    (B) the actual yield of the producers on the farm 
                for the 1997, 1998, or 1999 crop year.
            (3) New producers.--In the case of producers on a farm that 
        planted acreage to an oilseed during the 2000 crop year but not 
        the 1997, 1998, or 1999 crop year, the yield of the producers on 
        a farm under subsection (b)(3) shall be equal to the greater 
        of--
                    (A) the average county yield per harvested acre for 
                each of the 1995 through 1999 crop years, excluding the 
                crop year with the highest yield per harvested acre and 
                the crop year with the lowest yield per harvested acre; 
                or
                    (B) the actual yield of the producers on the farm 
                for the 2000 crop.
            (4) Data source.--To the maximum extent available, the 
        Secretary shall use data provided by the National Agricultural 
        Statistics Service to carry out this subsection.

SEC. 203. <<NOTE: 7 USC 1421 note.>> SPECIALTY CROPS.

    (a) Replenishment of Perishable Agricultural Commodities Act Fund.--
Of the amount made available under section 261(a)(2), $30,450,000 
shall--
            (1) be deposited in the Perishable Agricultural Commodities 
        Act Fund established by section 3(b)(5) of the Perishable 
        Agricultural Commodities Act, 1930 (7 U.S.C. 499c(b)(5));
            (2) be merged with other amounts in the Perishable 
        Agricultural Commodities Act Fund; and

[[Page 114 STAT. 400]]

            (3) be available for the same purposes and for the same time 
        period as other amounts in the Perishable Agricultural 
        Commodities Act Fund.

    (b) Replenishment of Trust Funds for Services under Agricultural 
Marketing Act of 1946.--Of the amount made available under section 
261(a)(2), $29,000,000 shall--
            (1) be deposited in the trust fund account established to 
        cover the cost of inspection, certification, and identification 
        services provided under section 203(h) of the Agricultural 
        Marketing Act of 1946 (7 U.S.C. 1622(h));
            (2) be merged with other amounts in the trust fund account; 
        and
            (3) be available for the same purposes and for the same time 
        period as other amounts in the trust fund account.

    (c) Inspection Services Improvements.--Of the amount made available 
under section 261(a)(2), $11,550,000 shall be used by the Secretary to 
improve the infrastructure and system used for inspecting fruits and 
vegetables, including improving--
            (1) the program used to train inspectors, including the 
        establishment of an inspector training center;
            (2) the technological resources used by inspectors;
            (3) the use of digital imaging by inspectors; and
            (4) the office space and grading tables used by inspectors.

    (d) Surplus Crop Purchases.--
            (1) Purchases.--Of the amount made available under section 
        261(a)(2), $200,000,000 shall be used by the Secretary to 
        purchase specialty crops that have experienced low prices during 
        the 1998 or 1999 crop years, including apples, black-eyed peas, 
        cherries, citrus, cranberries, onions, melons, peaches, and 
        potatoes.
            (2) Displacement.--The Secretary shall ensure that purchases 
        of specialty crops under this subsection will not displace 
        purchases by the Secretary under any other law.

    (e) Grower Compensation.--
            (1) Compensation.--Of the amount made available under 
        section 261(a)(2), $25,000,000 shall be used by the Secretary to 
        compensate--
                    (A) growers covered by the Secretary's Declaration 
                of Extraordinary Emergency published on March 2, 2000 
                (65 Fed. Reg. 11280), regarding the plum pox virus;
                    (B) growers for losses due to Pierce's disease; and
                    (C) commercial producers for losses due to citrus 
                canker.
            (2) Report.--Not <<NOTE: Deadline.>> later than July 19, 
        2000, the Secretary, in coordination with the Inspector General 
        of the Department of Agriculture, 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 
        that analyzes--
                    (A) the economic losses to the produce industry as a 
                result of allegations of false inspection certificates 
                prepared by graders of the Department of Agriculture at 
                Hunts Point Terminal Market, Bronx, New York; and
                    (B) the restitution by the Secretary for persons 
                damaged as a result of losses described in subparagraph 
                (A).

    (f ) Apple Loans.--

[[Page 114 STAT. 401]]

            (1) Requirement.--The Secretary, acting through the Farm 
        Service Agency, shall use funds of the Commodity Credit 
        Corporation to make loans to producers of apples that are 
        suffering economic loss as the result of low prices for apples.
            (2) Term.--The term of a loan made under this subsection 
        shall be not more than 3 years.
            (3) Interest rate.--The interest rate for a loan made under 
        this subsection shall be at a rate equal to the then current 
        cost of money to the Government of the United States for loans 
        of similar maturity.
            (4) Security.--The Secretary may require a loan made under 
        this subsection to be secured by real property or such other 
        collateral as the Secretary considers appropriate and protects 
        the interests of the Federal Government.
            (5) Limitation.--The cost of all loans made under this 
        subsection shall not exceed $5,000,000.

SEC. 204. <<NOTE: 7 USC 1421 note.>> OTHER COMMODITIES.

    (a) Peanuts.--
            (1) In general.--The Secretary shall use funds of the 
        Commodity Credit Corporation to provide payments to producers of 
        quota peanuts or additional peanuts to partially compensate the 
        producers for continuing low commodity prices, and increasing 
        costs of production, for the 2000 crop year.
            (2) Amount.--The amount of a payment made to producers on a 
        farm of quota peanuts or additional peanuts under paragraph (1) 
        shall be equal to the product obtained by multiplying--
                    (A) the quantity of quota peanuts or additional 
                peanuts produced or considered produced by the 
                producers; and
                    (B) a payment rate equal to--
                          (i) in the case of quota peanuts, $30.50 per 
                      ton; and
                          (ii) in the case of additional peanuts, $16.00 
                      per ton.

    (b) Tobacco.--
            (1) Definitions.--In this subsection:
                    (A) Eligible person.--The term ``eligible person'' 
                means a person that owns or operates, or produces 
                eligible tobacco on, a farm--
                          (i) for which the quantity of quota of 
                      eligible tobacco allotted to the farm under part I 
                      of subtitle B of title III of the Agricultural 
                      Adjustment Act of 1938 (7 U.S.C. 1311 et seq.) was 
                      reduced from the 1999 crop year to the 2000 crop 
                      year; and
                          (ii) that is used for the production of 
                      eligible tobacco during the 2000 crop year.
                    (B) Eligible tobacco.--The term ``eligible tobacco'' 
                means each of the following kinds of tobacco:
                          (i) Flue-cured tobacco, comprising types 11, 
                      12, 13, and 14.
                          (ii) Fire-cured tobacco, comprising type 21.
                          (iii) Burley tobacco, comprising type 31.
                          (iv) Cigar-filler and cigar-binder tobacco, 
                      comprising types 42, 43, 44, 54, and 55.

[[Page 114 STAT. 402]]

            (2) Payments.--Effective <<NOTE: Effective date.>> beginning 
        October 1, 2000, the Secretary shall use $340,000,000 of funds 
        of the Commodity Credit Corporation to make payments to eligible 
        persons.
            (3) Allocation of funds among states.--The funds made 
        available for eligible persons under paragraph (2) shall be 
        allocated among States in the following dollar amounts:

Alabama                                                        $100,000 
Arkansas                                                         $1,000 
Florida                                                      $2,500,000 
Georgia                                                     $13,000,000 
Indiana                                                      $5,400,000 
Kansas                                                          $23,000 
Kentucky                                                   $140,000,000 
Missouri                                                     $2,000,000 
North Carolina                                             $100,000,000 
Ohio                                                         $6,000,000 
Oklahoma                                                         $1,000 
South Carolina                                              $15,000,000 
Tennessee                                                   $35,000,000 
Virginia                                                    $19,000,000 
Wisconsin                                                      $675,000 
West Virginia                                                $1,300,000.

            (4) Allocation of funds among farms in a state.--The 
        Secretary shall divide the amount allocated to a State under 
        paragraph (3) among farms in the State based on the quota of 
        eligible tobacco available to each farm of an eligible person 
        for the 2000 crop year.
            (5) Division of farm payments among eligible persons in a 
        state.--Not <<NOTE: Deadline.>> later than October 20, 2000, the 
        Secretary shall divide amounts made available to farms in a 
        State under paragraph (4) among eligible persons who are quota 
        owners, quota lessees, and tobacco producers on farms in the 
        State, and make payments to the eligible persons, on the basis 
        of--
                    (A) in the case of a State that is a party to the 
                National Tobacco Grower Settlement Trust, the formula in 
                the Trust used to allocate funds among quota owners, 
                quota lessees, and tobacco producers on farms in the 
                State, with such adjustments as the Secretary determines 
                are necessary to enable the payments to be made by 
                October 20, 2000; or
                    (B) in the case of a State that is not a party to 
                the National Tobacco Grower Settlement Trust, a formula 
                established by the Secretary.
            (6) Payments to eligible persons in georgia.--The Secretary 
        shall use the amount allocated to the State of Georgia under 
        paragraph (3) to make payments to eligible persons in Georgia 
        only if the State of Georgia agrees to use an equal amount (not 
        to exceed $13,000,000) to make payments at the same time, or 
        subsequently, to the same eligible persons in the same manner as 
        provided for the Federal payment under paragraphs (4) and (5).
            (7) Use for administrative costs.--None of the funds made 
        available under paragraphs (1) through (7) may be used to pay 
        administrative costs incurred in carrying out those paragraphs.
            (8) Transfer of allotments.--Section 318 of the Agricultural 
        Adjustment Act of 1938 (7 U.S.C. 1314d) is amended by striking 
        subsection (g) and inserting the following:

[[Page 114 STAT. 403]]

    ``(g) Transfer of Allotments.--Under this section, the total acreage 
allotted to any farm after any transfer shall not exceed 50 percent of 
the acreage of cropland on the farm.''.
            (9) Burley tobacco inventories of producer associations.--
        Section 319(c)(3) of the Agricultural Adjustment Act of 1938 (7 
        U.S.C. 1314e(c)(3)) is amended--
                    (A) in subparagraph (B), by striking ``In'' and 
                inserting ``Except as provided in subparagraph (D), 
                in''; and
                    (B) by adding at the end the following:
                    ``(D) Nonapplicability of downward adjustment.--If 
                the Secretary determines for any of the 2001 or 
                subsequent crop years that noncommitted pool stocks of 
                Burley tobacco are equal to or less than the reserve 
                stock level established under this paragraph, 
                subparagraph (B) shall not apply to the crop year for 
                which the determination is made and all subsequent crop 
                years.''.
            (10) Limitations on burley tobacco quota adjustments.--
                    (A) Carry forward adjustment.--Section 319(e) of the 
                Agricultural Adjustment Act of 1938 (7 U.S.C. 1314e(e)) 
                is amended in the fifth sentence--
                          (i) by striking ``: Provided, That'' and 
                      inserting ``, except that (1)''; and
                          (ii) by inserting before the period at the end 
                      the following: ``, and (2) the aggregate of such 
                      increases for all farms for any crop year may not 
                      exceed 10 percent of the national basic quota for 
                      the preceding crop year''.
                    (B) Lease and transfer of quota due to natural 
                disasters.--Section 319(k) of the Agricultural 
                Adjustment Act of 1938 (7 U.S.C. 1314e(k)) is amended by 
                adding at the end the following:
            ``(3) Limitation.--The total quantity of quota leased or 
        transferred to a farm during a crop year under this subsection 
        may not exceed 15 percent of the quota on the farm that existed 
        prior to any such lease or transfer for the crop year.''.
            (11) Lease and transfer of burley tobacco quota.--Section 
        319 of the Agricultural Adjustment Act of 1938 (7 U.S.C. 1314e) 
        is amended by striking subsection (l) and inserting the 
        following:

    ``(l) Lease and Transfer of Burley Tobacco Quota.--
            ``(1) Approval by producers.--Notwithstanding any other 
        provision of this section, the Secretary may permit the lease 
        and transfer of a Burley tobacco quota from one farm in a State 
        to any other farm in the State if, in a State-wide referendum 
        conducted by the Secretary, a majority of the active Burley 
        tobacco producers voting in the referendum approve the use of 
        that type of lease and transfer.
            ``(2) Application.--This <<NOTE: State listing.>> subsection 
        shall apply only to the States of Tennessee, Ohio, Indiana, 
        Kentucky, and Virginia.''.
            (12) Recordkeeping and sale of burley tobacco quota and 
        acreage.--Section 319 of the Agricultural Adjustment Act of 1938 
        (7 U.S.C. 1314e) is amended by adding at the end the following:

    ``(m) Computerized Recordkeeping System for Burley Tobacco Quota and 
Acreage.--

[[Page 114 STAT. 404]]

            ``(1) Producer reports.--Each person that owns a farm for 
        which a Burley tobacco marketing quota is established under this 
        Act shall annually file with the Secretary a report describing 
        the acreage planted to Burley tobacco on the farm.
            ``(2) Computerized recordkeeping system.--Not later than 180 
        days after the date of the enactment of this subsection, the 
        Secretary shall establish a computerized recordkeeping system 
        that contains all information reported under paragraph (1) and 
        related records, as determined by the Secretary.

    ``(n) Sale of Burley Tobacco Quota.--Notwithstanding any other 
provision of this section, if a person that owns a farm for which a 
Burley tobacco marketing quota is established under this Act sells all 
or part of the acreage on the farm to a buyer, the Secretary shall 
permit the seller and buyer of the acreage to determine the percentage 
of the quota that is transferred with the acreage sold.''.
    (c) Honey.--
            (1) In general.--The Secretary shall use funds of the 
        Commodity Credit Corporation to make available recourse loans to 
        producers of the 2000 crop of honey on fair and reasonable terms 
        and conditions, as determined by the Secretary.
            (2) Loan rate.--The loan rate for a loan under paragraph (1) 
        shall be equal to 85 percent of the average price of honey 
        during the 5-crop year period preceding the 2000 crop year, 
        excluding the crop year in which the average price of honey was 
        the highest and the crop year in which the average price of 
        honey was the lowest in the period.

    (d) Wool and Mohair.--
            (1) In general.--The Secretary shall use funds of the 
        Commodity Credit Corporation to make payments to producers of 
        wool, and producers of mohair, for the 1999 marketing year.
            (2) Payment rate.--The payment rate for payments made to 
        producers under paragraph (1) shall be equal to--
                    (A) in the case of wool, 20 cents per pound; and
                    (B) in the case of mohair, 40 cents per pound.

    (e) Cottonseed.--The Secretary shall use $100,000,000 of funds of 
the Commodity Credit Corporation to provide assistance to producers and 
first-handlers of the 2000 crop of cottonseed.

SEC. 205. PAYMENTS <<NOTE: 7 USC 1421 note.>> IN LIEU OF LOAN DEFICIENCY 
            PAYMENTS.

    (a) Eligible Producers.--Effective for the 2001 crop year, in the 
case of a producer that would be eligible for a loan deficiency payment 
under section 135 of the Agricultural Market Transition Act (7 U.S.C. 
7235) for wheat, barley, or oats, but that elects to use acreage planted 
to the wheat, barley, or oats for the grazing of livestock, the 
Secretary shall make a payment to the producer under this section if the 
producer enters into an agreement with the Secretary to forgo any other 
harvesting of the wheat, barley, or oats on that acreage.
    (b) Payment Amount.--The amount of a payment made to a producer on a 
farm under this section shall be equal to the amount determined by 
multiplying--
            (1) the loan deficiency payment rate determined under 
        section 135(c) of the Agricultural Market Transition Act (7 
        U.S.C. 7235(c)) in effect, as of the date of the agreement, for 
        the county in which the farm is located; by
            (2) the payment quantity determined by multiplying--

[[Page 114 STAT. 405]]

                    (A) the quantity of the grazed acreage on the farm 
                with respect to which the producer elects to forgo 
                harvesting of wheat, barley, or oats; and
                    (B) the greater of--
                          (i) the established yield for the crop on the 
                      farm; or
                          (ii) the average county yield per harvested 
                      acre of the crop, as determined by the Secretary.

    (c) Time, Manner, and Availability of Payment.--
            (1) Time and manner.--A payment under this section shall be 
        made at the same time and in the same manner as loan deficiency 
        payments are made under section 135 of the Agricultural Market 
        Transition Act (7 U.S.C. 7235), except that the payment shall be 
        made not later than September 30, 2001.
            (2) Availability.--The Secretary shall establish an 
        availability period for the payment authorized by this section 
        that is consistent with the availability period for wheat, 
        barley, and oats established by the Secretary for marketing 
        assistance loans authorized by subtitle C of the Agricultural 
        Market Transition Act (7 U.S.C. 7231 et seq.).

    (d) Regulations.--The Secretary shall promulgate under section 263 
such regulations as are necessary to administer the payments authorized 
by this section in a fair and equitable manner with respect to producers 
of wheat and feed grains that do not receive a payment under this 
section.
    (e) Funding.--The Secretary shall use funds of the Commodity Credit 
Corporation to carry out this section.

SEC. 206. EXPANSION <<NOTE: 7 USC 1421 note.>> OF PRODUCERS ELIGIBLE FOR 
            LOAN DEFICIENCY PAYMENTS.

    (a) Eligible Producers.--Section 135(a) of the Agricultural Market 
Transition Act (7 U.S.C. 7235(a)) is amended--
            (1) by striking ``to producers'' and inserting ``to--
            ``(1) producers'';
            (2) by striking the period at the end and inserting ``; 
        and''; and
            (3) by adding at the end the following:
            ``(2) effective only for the 2000 crop year, producers that, 
        although not eligible to obtain such a marketing assistance loan 
        under section 131, produce a contract commodity.''.

    (b) Calculation.--Section 135(b)(2) of the Agricultural Market 
Transition Act (7 U.S.C. 7235(b)(2)) is amended by striking ``that the 
producers'' and all that follows through the period at the end and 
inserting the following: ``produced by the eligible producers, excluding 
any quantity for which the producers obtain a loan under section 131.''.
    (c) Transition; Beneficial Interest.--Section 135 of the 
Agricultural Market Transition Act (7 U.S.C. 7235) is amended by adding 
at the end the following:
    ``(e) Transition.--A payment to a producer eligible for a payment 
under subsection (a)(2) that harvested a commodity on or before the date 
that is 30 days after the promulgation of the regulations implementing 
subsection (a)(2) shall be determined as the date the producer lost 
beneficial interest in the commodity, as determined by the Secretary.
    ``(f ) Beneficial Interest.--Subject to subsection (e), a producer 
shall be eligible for a payment under this section only if the producer

[[Page 114 STAT. 406]]

has a beneficial interest in the commodity, as determined by the 
Secretary.''.

                        Subtitle B--Conservation

SEC. 211. CONSERVATION <<NOTE: 16 USC 3830 note.>>  ASSISTANCE.

    (a) Farmland Protection.--For the purposes described in section 388 
of the Federal Agriculture Improvement and Reform Act of 1996 (16 U.S.C. 
3830 note; Public Law 104-127), the Secretary shall use $10,000,000 of 
funds of the Commodity Credit Corporation to make payments to--
            (1) any agency of any State or local government, or 
        federally recognized Indian tribe, including farmland protection 
        boards and land resource councils established under State law; 
        and
            (2) any organization that--
                    (A) is organized for, and at all times since the 
                formation of the organization has been operated 
                principally for, one or more of the conservation 
                purposes specified in clause (i), (ii), or (iii) of 
                section 170(h)(4)(A) of the Internal Revenue Code of 
                1986;
                    (B) is an organization described in section 
                501(c)(3) of that Code that is exempt from taxation 
                under section 501(a) of that Code;
                    (C) is described in section 509(a)(2) of that Code; 
                or
                    (D) is described in section 509(a)(3) of that Code 
                and is controlled by an organization described in 
                section 509(a)(2) of that Code.

    (b) Soil and Water Conservation Assistance.--
            (1) Establishment.--The Secretary shall use $40,000,000 of 
        funds of the Commodity Credit Corporation to provide financial 
        assistance to farmers and ranchers to--
                    (A) address threats to soil, water, and related 
                natural resources, including grazing land, wetland, and 
                wildlife habitat;
                    (B) comply with Federal and State environmental 
                laws; and
                    (C) make beneficial, cost-effective changes to 
                cropping systems, grazing management, manure, nutrient, 
                pest, or irrigation management, land uses, or other 
                measures needed to conserve and improve soil, water, and 
                related natural resources.
            (2) Type of assistance.--Assistance under this subsection 
        may be made in the form of cost share payments or incentive 
        payments, as determined by the Secretary.
            (3) Areas.--The Secretary shall provide assistance under 
        this subsection to areas that are not designated under section 
        1230(c) of the Food Security Act of 1985 (16 U.S.C. 3830(c)).

SEC. 212. CONDITION ON DEVELOPMENT OF LITTLE DARBY NATIONAL WILDLIFE 
            REFUGE, OHIO.

    The Secretary of the Interior, acting through the Director of the 
United States Fish and Wildlife Service, shall prepare an environmental 
impact statement pursuant to the National Environmental Policy Act of 
1969 (42 U.S.C. 4321 et seq.) before proceeding with any further 
development of the Little Darby National Wildlife Refuge in Madison and 
Union Counties, Ohio.

[[Page 114 STAT. 407]]

                          Subtitle C--Research

SEC. 221. CARBON CYCLE RESEARCH.

    (a) In General.--Of the amount made available under section 
261(a)(2), the Secretary shall use $15,000,000 to provide a grant to the 
Consortium for Agricultural Soils Mitigation of Greenhouse Gases, acting 
through Kansas State University, to develop, analyze, and implement, 
through the land grant universities described in subsection (b), carbon 
cycle research at the national, regional, and local levels.
    (b) Land Grant Universities.--The land grant universities referred 
to in subsection (a) are the following:
            (1) Colorado State University.
            (2) Iowa State University.
            (3) Kansas State University.
            (4) Michigan State University.
            (5) Montana State University.
            (6) Purdue University.
            (7) Ohio State University.
            (8) Texas A&M University.
            (9) University of Nebraska.

    (c) Use.--Land grant universities described in subsection (b) shall 
use funds made available under this section--
            (1) to conduct research to improve the scientific basis of 
        using land management practices to increase soil carbon 
        sequestration, including research on the use of new technologies 
        to increase carbon cycle effectiveness, such as biotechnology 
        and nanotechnology;
            (2) to enter into partnerships to identify, develop, and 
        evaluate agricultural best practices, including partnerships 
        between--
                    (A) Federal, State, or private entities; and
                    (B) the Department of Agriculture;
            (3) to develop necessary computer models to predict and 
        assess the carbon cycle;
            (4) to estimate and develop mechanisms to measure carbon 
        levels made available as a result of--
                    (A) voluntary Federal conservation programs;
                    (B) private and Federal forests; and
                    (C) other land uses;
            (5) to develop outreach programs, in coordination with 
        Extension Services, to share information on carbon cycle and 
        agricultural best practices that is useful to agricultural 
        producers; and
            (6) to collaborate with the Great Plains Regional Earth 
        Science Application Center to develop a space-based carbon cycle 
        remote sensing technology program to--
                    (A) provide, on a near-continual basis, a real-time 
                and comprehensive view of vegetation conditions;
                    (B) assess and model agricultural carbon 
                sequestration; and
                    (C) develop commercial products.

    (d) Administrative Costs.--Not more than 3 percent of the funds made 
available under subsection (a) may be used by the Secretary to pay 
administrative costs incurred in carrying out this section.

[[Page 114 STAT. 408]]

SEC. 222. TOBACCO RESEARCH FOR MEDICINAL PURPOSES.

    (a) Assistance.--Of the amount made available under section 
261(a)(2), the Secretary, acting through the Cooperative State Research, 
Education, and Extension Service, shall use $3,000,000 to provide a 
grant jointly to Georgetown University and North Carolina State 
University to conduct research regarding the extraction and purification 
of proteins from genetically altered tobacco that may be used as a 
vaccine for cervical cancer.
    (b) Relation to Other Law.--The Secretary may make the grant 
described in subsection (a) notwithstanding any general prohibition on 
the use of appropriated funds to carry out research related to the 
production, processing, or marketing of tobacco or tobacco products.

SEC. 223. RESEARCH ON SOIL SCIENCE AND FOREST HEALTH MANAGEMENT.

    Of the amount made available under section 261(a)(2), the Secretary 
shall use $10,000,000 to provide a grant to the University of Nebraska 
in Lincoln, Nebraska, for laboratories and equipment for research on 
soil science and forest health and management.

SEC. 224. RESEARCH ON WASTE STREAMS FROM LIVESTOCK PRODUCTION.

    Of the amount made available under section 261(a)(2), the Secretary 
shall use $3,500,000 to expand current research related to technologies 
for--
            (1) reducing, modifying, recycling, and using waste streams 
        from livestock production; and
            (2) eliminating associated air, water, and soil quality 
        problems.

SEC. 225. IMPROVED STORAGE AND MANAGEMENT OF LIVESTOCK AND POULTRY 
            WASTE.

    (a) Assistance.--Of the amount made available under section 
261(a)(2), the Secretary shall use $5,000,000--
            (1) to review and assess the actual or potential failure of 
        waste storage and handling systems used in livestock or poultry 
        production and the environmental damages associated with the 
        failure of the systems; and
            (2) to study and demonstrate appropriate market-oriented 
        mechanisms to assist livestock producers and poultry producers 
        to prevent the failure of the systems and rectify environmental 
        damages associated with the failure of the systems.

    (b) Implementation.--The <<NOTE: Grants. Contracts.>> Secretary 
shall carry out this section through grants, contracts, and cooperative 
agreements with livestock producers, poultry producers, associations of 
such producers, and foundations supported by such producers.

SEC. 226. ETHANOL RESEARCH PILOT PLANT.

    Of the amount made available under section 261(a)(2), the Secretary 
shall use $14,000,000 to provide a grant to the State of Illinois to 
complete the construction of a corn-based ethanol research pilot plant 
(Agreement No. 59-3601-7-078) at Southern Illinois University, 
Edwardsville, Illinois.

SEC. 227. BIOINFORMATICS INSTITUTE FOR MODEL PLANT SPECIES.

    (a) Establishment and Purpose.--The Secretary, acting through the 
Agricultural Research Service, may enter into a

[[Page 114 STAT. 409]]

cooperative agreement with the National Center for Genome Resources in 
Santa Fe, New Mexico, New Mexico State University, and Iowa State 
University, for the establishment and operation of an institute (to be 
known as the ``Bioinformatics Institute for Model Plant Species'') in 
Santa Fe, New Mexico, for the purpose of enhancing the accessibility and 
utility of genomic information for plant genetic research.
    (b) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this section--
            (1) $3,000,000 for the purpose of establishing the Institute 
        under subsection (a); and
            (2) such sums as may be necessary for each fiscal year to 
        carry out the cooperative agreement authorized by subsection 
        (a).

                   Subtitle D--Agricultural Marketing

SEC. 231. VALUE-ADDED <<NOTE: 7 USC 1621 note.>> AGRICULTURAL PRODUCT 
            MARKET DEVELOPMENT GRANTS.

    (a) Grant Program.--
            (1) Establishment and purposes.--Of the amount made 
        available under section 261(a)(2), $15,000,000 shall be used by 
        the Secretary to award competitive grants to eligible 
        independent producers (as determined by the Secretary) of value-
        added agricultural commodities and products of agricultural 
        commodities to assist an eligible producer--
                    (A) to develop a business plan for viable marketing 
                opportunities for a value-added agricultural commodity 
                or product of an agricultural commodity; or
                    (B) to develop strategies for the ventures that are 
                intended to create marketing opportunities for the 
                producers.
            (2) Amount of grant.--The total amount provided under this 
        subsection to a grant recipient may not exceed $500,000.
            (3) Producer strategies.--A producer that receives a grant 
        under paragraph (1) shall use the grant--
                    (A) to develop a business plan or perform a 
                feasibility study to establish a viable marketing 
                opportunity for a value-added agricultural commodity or 
                product of an agricultural commodity; or
                    (B) to provide capital to establish alliances or 
                business ventures that allow the producer to better 
                compete in domestic or international markets.

    (b) Agricultural Marketing Resource Center Pilot Project.--
            (1) Establishment.--Notwithstanding the limitation on grants 
        in subsection (a)(2), the Secretary shall not use more than 
        $5,000,000 of the funds made available under subsection (a) to 
        establish a pilot project (to be known as the ``Agricultural 
        Marketing Resource Center'') at an eligible institution 
        described in paragraph (2) that will--
                    (A) develop a resource center with electronic 
                capabilities to coordinate and provide to independent 
                producers and processors (as determined by the 
                Secretary) of value-

[[Page 114 STAT. 410]]

                added agricultural commodities and products of 
                agricultural commodities information regarding research, 
                business, legal, financial, or logistical assistance; 
                and
                    (B) develop a strategy to establish a nationwide 
                market information and coordination system.
            (2) Eligible institution.--To be eligible to receive funding 
        to establish the Agricultural Marketing Resource Center, an 
        applicant shall demonstrate to the Secretary--
                    (A) the capacity and technical expertise to provide 
                the services described in paragraph (1)(A);
                    (B) an established plan outlining support of the 
                applicant in the agricultural community; and
                    (C) the availability of resources (in cash or in 
                kind) of definite value to sustain the Center following 
                establishment.

    (c) Matching Funds.--A recipient of funds under subsection (a) or 
(b) shall contribute an amount of non-Federal funds that is at least 
equal to the amount of Federal funds received.
    (d) Limitation.--Funds provided under this section may not be used 
for--
            (1) planning, repair, rehabilitation, acquisition, or 
        construction of a building or facility (including a processing 
        facility); or
            (2) the purchase, rental, or installation of fixed 
        equipment.

                     Subtitle E--Nutrition Programs

SEC. 241. CALCULATION OF MINIMUM AMOUNT OF COMMODITIES FOR SCHOOL LUNCH 
            REQUIREMENTS.

    (a) Fiscal Year 2000.--Notwithstanding any other provision of law, 
in addition to any assistance provided under any other provision of law, 
of the amount made available under section 261(a)(1), the Secretary 
shall use $34,000,000 in fiscal year 2000 to purchase commodities of the 
type provided under section 6 of the Richard B. Russell National School 
Lunch Act (42 U.S.C. 1755) for distribution to schools participating in 
the school lunch program established under that Act (42 U.S.C. 1751 et 
seq.).
    (b) Fiscal Year 2001.--Section 6(e)(1)(B) of the Richard B. Russell 
National School Lunch Act (42 U.S.C. 1755(e)(1)(B)) is amended by 
striking ``2000'' and inserting ``2001''.
    (c) Additional Commodities in Fiscal Year 2001.--Notwithstanding any 
other provision of law, in addition to any assistance provided under any 
other provision of law (including the amendment made by subsection (b)), 
of the amount made available under section 261(a)(2), the Secretary 
shall use $21,000,000 in fiscal year 2001 to purchase commodities of the 
type provided under section 6 of the Richard B. Russell National School 
Lunch Act (42 U.S.C. 1755) for distribution to schools participating in 
the school lunch program established under that Act (42 U.S.C. 1751 et 
seq.).
    (d) Distribution to Schools.--The commodities purchased under 
subsections (a) and (c) shall, to the maximum extent practicable, be 
distributed in the same manner as commodities are distributed under 
section 6 of the Richard B. Russell National School Lunch Act (42 U.S.C. 
1755).

[[Page 114 STAT. 411]]

SEC. 242. SCHOOL LUNCH DATA.

    (a) Limited Waiver of Confidentiality Requirement.--
            (1) In general.--Section 9(b)(2)(C)(iii) of the Richard B. 
        Russell National School Lunch Act (42 U.S.C. 1758(b)(2)(C)(iii)) 
        is amended--
                    (A) in subclause (II), by striking ``and'' at the 
                end;
                    (B) in subclause (III), by striking the period at 
                the end and inserting ``; and''; and
                    (C) by adding at the end the following:
                                    ``(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 purpose of identifying 
                                children eligible for benefits under, 
                                and enrolling children in, such 
                                programs, except that this subclause 
                                shall apply only to the extent that the 
                                State and the school food authority so 
                                elect.''.
            (2) Certification and notification.--Section 9(b)(2)(C) of 
        the Richard B. Russell National School Lunch Act (42 U.S.C. 
        1758(b)(2)(C)) is amended by adding at the end the following:
                          ``(vi) Requirements for waiver of 
                      confidentiality.--A State that elects to exercise 
                      the option described in clause (iii)(IV) shall 
                      ensure that any school food authority acting in 
                      accordance with that option--
                                    ``(I) has a written agreement with 
                                the State or local agency or agencies 
                                administering health insurance 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 clause (iii) 
                                to seek to enroll children in those 
                                health insurance programs; and
                                    ``(II)(aa) notifies each household, 
                                the information of which shall be 
                                disclosed under clause (iii), that the 
                                information disclosed will be used only 
                                to enroll children in health programs 
                                referred to in clause (iii)(IV); and
                                    ``(bb) provides each parent or 
                                guardian of a child in the household 
                                with an opportunity to elect not to have 
                                the information disclosed.
                          ``(vii) Use of disclosed information.--A 
                      person to which information is disclosed under 
                      clause (iii)(IV) shall use or disclose the 
                      information only as necessary for the purpose of 
                      enrolling children in health programs referred to 
                      in clause (iii)(IV).''.

    (b) Demonstration Project.--
            (1) In general.--Section 17 of the Child Nutrition Act of 
        1966 (42 U.S.C. 1786) is amended by adding at the end the 
        following:

    ``(r) Demonstration Project Relating to Use of the WIC Program for 
Identification and Enrollment of Children in Certain Health Programs.--
            ``(1) In general.--In accordance with paragraph (2), the 
        Secretary shall establish a demonstration project in at least

[[Page 114 STAT. 412]]

        20 local agencies in one State under which costs of nutrition 
        services and administration (as defined in subsection (b)(4)) 
        shall include the costs of identification of children eligible 
        for benefits under, and the provision of enrollment assistance 
        for children in--
                    ``(A) the State medicaid program under title XIX of 
                the Social Security Act (42 U.S.C. 1396 et seq.); and
                    ``(B) the State children's health insurance program 
                under title XXI of that Act (42 U.S.C. 1397aa et seq.).
            ``(2) State-related requirements.--The State in which a 
        demonstration project is established under paragraph (1)--
                    ``(A) shall operate not fewer than 20 pilot site 
                locations;
                    ``(B) as of the date of establishment of the 
                demonstration project--
                          ``(i) with respect to the programs referred to 
                      in subparagraphs (A) and (B) of paragraph (1)--
                                    ``(I) shall have in use a simplified 
                                application form with a length of not 
                                more than two pages;
                                    ``(II) shall accept mail-in 
                                applications; and
                                    ``(III) shall permit enrollment in 
                                the program in a variety of locations; 
                                and
                          ``(ii) shall have served as an original pilot 
                      site for the program under this section; and
                    ``(C) as of December 31, 1998, shall have had--
                          ``(i) an infant mortality rate that is above 
                      the national average; and
                          ``(ii) an overall rate of age-appropriate 
                      immunizations against vaccine-preventable diseases 
                      that is below 80 percent.
            ``(3) Termination of authority.--The authority provided by 
        this subsection terminates September 30, 2003.''.
            (2) Technical amendments.--Section 17 of the Child Nutrition 
        Act of 1966 (42 U.S.C. 1786) is amended--
                    (A) in subsection (b)(4), by striking ``(4)'' and 
                all that follows through ``means'' and inserting ``(4) 
                `Costs of nutrition services and administration' or 
                `nutrition services and administration' means''; and
                    (B) in subsection (h)(1)(A), by striking ``costs 
                incurred by State and local agencies for nutrition 
                services and administration'' and inserting ``costs of 
                nutrition services and administration incurred by State 
                and local agencies''.
            (3) Grant for demonstration project.--Section 12 of the 
        Richard B. Russell National School Lunch Act (42 U.S.C. 1760) is 
        amended by adding at the end the following:

    ``(p) Grant for Demonstration Project.--
            ``(1) Use of funds for wic demonstration project.--
                    ``(A) In general.--The Secretary shall make grants 
                of funds under this subsection to a State--
                          ``(i) for purposes that include carrying out 
                      the demonstration project under section 17(r) of 
                      the Child Nutrition Act of 1966 (42 U.S.C. 
                      1786(r)); and
                          ``(ii) for the purpose described in clause 
                      (i), in amounts not to exceed $10,000 for each 
                      fiscal year for each site in the State.
                    ``(B) Apportionment.--A State that receives a grant 
                under subparagraph (A) shall apportion the funds 
                received

[[Page 114 STAT. 413]]

                to ensure that each site in the State receives not more 
                than $10,000 for any fiscal year.
            ``(2) Evaluations of demonstration project.--The Secretary 
        shall conduct an evaluation of the demonstration project and 
        grant program for identification and enrollment efforts funded 
        under this subsection that include a determination of--
                    ``(A) the number of children enrolled as a result of 
                the enactment of this subsection;
                    ``(B) the income levels of the families of enrolled 
                children;
                    ``(C) the cost of identification and enrollment 
                assistance services provided under the project or grant 
                program;
                    ``(D) the effect on the caseloads of local agencies 
                that carry out the special supplemental nutrition 
                program for woman, infants, and children established 
                under section 17 of the Child Nutrition Act of 1966 (42 
                U.S.C. 1786); and
                    ``(E) such other factors as the Secretary determines 
                to be appropriate.
            ``(3) Funding.--
                    ``(A) In general.--Out of any moneys in the Treasury 
                not otherwise appropriated, the Secretary of the 
                Treasury shall provide to the Secretary to carry out 
                this subsection $1,000,000 for the period of fiscal 
                years 2001 through 2004, to remain available until 
                expended but not later than September 30, 2004.
                    ``(B) Receipt and acceptance.--The Secretary shall 
                be entitled to receive the funds and shall accept the 
                funds provided under subparagraph (A), without further 
                appropriation.''.

    (c) Effective Date.--The <<NOTE: 42 USC 1758 note.>> amendments made 
by this section take effect on October 1, 2000.

SEC. 243. CHILD AND ADULT CARE FOOD PROGRAM INTEGRITY.

    (a) Definition of Institution; Exclusion of Seriously Deficient 
Institutions.--Section 17(a) of the Richard B. Russell National School 
Lunch Act (42 U.S.C. 1766(a)) is amended--
            (1) by striking ``(a) The Secretary'' and inserting the 
        following:

    ``(a) Grant Authority and Institution Eligibility.--
            ``(1) Grant authority.--The Secretary'';
            (2) by striking the second and third sentences and inserting 
        the following:
            ``(2) Definition of institution.--In this section, the term 
        `institution' means--
                    ``(A) any public or private nonprofit organization 
                providing nonresidential child care or day care outside 
                school hours for school children, including any child 
                care center, settlement house, recreational center, Head 
                Start center, and institution providing child care 
                facilities for children with disabilities;
                    ``(B) any other private organization providing 
                nonresidential child care or day care outside school 
                hours for school children for which the organization 
                receives compensation from amounts granted to the States 
                under title XX of the Social Security Act (42 U.S.C. 
                1397 et seq.) (but only if the organization receives 
                compensation under

[[Page 114 STAT. 414]]

                that title for at least 25 percent of its enrolled 
                children or 25 percent of its licensed capacity, 
                whichever is less);
                    ``(C) any public or private nonprofit organization 
                acting as a sponsoring organization for one or more of 
                the organizations described in subparagraph (A) or (B) 
                or for an adult day care center (as defined in 
                subsection (o)(2));
                    ``(D) any other private organization acting as a 
                sponsoring organization for, and that is part of the 
                same legal entity as, one or more organizations that 
                are--
                          ``(i) described in subparagraph (B); or
                          ``(ii) proprietary title XIX or title XX 
                      centers (as defined in subsection (o)(2));
                    ``(E) any public or private nonprofit organization 
                acting as a sponsoring organization for one or more 
                family or group day care homes; and
                    ``(F) any emergency shelter (as defined in 
                subsection (t)).'';
            (3) by striking ``Except as provided in subsection (r),'' 
        and inserting the following:
            ``(3) Age limit.--Except as provided in subsection (r),'';
            (4) by striking ``The Secretary may establish separate 
        guidelines'' and inserting the following:
            ``(4) Additional guidelines.--The Secretary may establish 
        separate guidelines'';
            (5) by striking ``For purposes of determining'' and all that 
        follows through ``an institution'' and inserting the following:
            ``(5) Licensing.--In order to be eligible, an institution''; 
        and
            (6) by striking ``standards; and'' and inserting 
        ``standards.'';
            (7) by striking ``(2) no institution'' and inserting the 
        following:
            ``(6) Eligibility criteria.--No institution''; and
            (8) in paragraph (6) (as so designated)--
                    (A) in subparagraph (B), by inserting ``, or has not 
                been determined to be ineligible to participate in any 
                other publicly funded program by reason of violation of 
                the requirements of the program'' before ``, for a 
                period'';
                    (B) in subparagraph (C)--
                          (i) by inserting ``(i)'' after ``(C)''; and
                          (ii) by adding at the end the following:
                    ``(ii) in the case of a sponsoring organization, the 
                organization shall employ an appropriate number of 
                monitoring personnel based on the number and 
                characteristics of child care centers and family or 
                group day care homes sponsored by the organization, as 
                approved by the State (in accordance with regulations 
                promulgated by the Secretary), to ensure effective 
                oversight of the operations of the child care centers 
                and family or group day care homes; and'';
                    (C) in subparagraph (D), by striking the period and 
                inserting a semicolon; and
                    (D) by adding at the end the following:
                    ``(E) in the case of a sponsoring organization, the 
                organization has in effect a policy that restricts other 
                employment by employees that interferes with the 
                responsibilities and duties of the employees of the 
                organization with respect to the program; and

[[Page 114 STAT. 415]]

                    ``(F) in the case of a sponsoring organization that 
                applies for initial participation in the program on or 
                after the date of the enactment of this subparagraph and 
                that operates in a State that requires such institutions 
                to be bonded under State law, regulation, or policy, the 
                institution is bonded in accordance with such law, 
                regulation, or policy.''.

    (b) Institution Approval and Applications.--
            (1) In general.--Section 17(d) of the Richard B. Russell 
        National School Lunch Act (42 U.S.C. 1766(d)) is amended by 
        striking the subsection designation and all that follows through 
        the end of paragraph (1) and inserting the following:

    ``(d) Institution Approval and Applications.--
            ``(1) Institution approval.--
                    ``(A) Administrative capability.--Subject to 
                subparagraph (B) and except as provided in subparagraph 
                (C), the State agency shall approve an institution that 
                meets the requirements of this section for participation 
                in the child and adult care food program if the State 
                agency determines that the institution--
                          ``(i) is financially viable;
                          ``(ii) is administratively capable of 
                      operating the program (including whether the 
                      sponsoring organization has business experience 
                      and management plans appropriate to operate the 
                      program) described in the application of the 
                      institution; and
                          ``(iii) has internal controls in effect to 
                      ensure program accountability.
                    ``(B) Approval of private institutions.--
                          ``(i) In general.--In addition to the 
                      requirements established by subparagraph (A) and 
                      subject to clause (ii), the State agency shall 
                      approve a private institution that meets the 
                      requirements of this section for participation in 
                      the child and adult care food program only if--
                                    ``(I) the State agency conducts a 
                                satisfactory visit to the institution 
                                before approving the participation of 
                                the institution in the program; and
                                    ``(II) the institution--
                                            ``(aa) has tax exempt status 
                                        under the Internal Revenue Code 
                                        of 1986;
                                            ``(bb) is operating a 
                                        Federal program requiring 
                                        nonprofit status to participate 
                                        in the program; or
                                            ``(cc) is described in 
                                        subsection (a)(2)(B).
                          ``(ii) Exception for family or group day care 
                      homes.--Clause (i) shall not apply to a family or 
                      group day care home.
                    ``(C) Exception for certain sponsoring 
                organizations.--
                          ``(i) In general.--The State agency may 
                      approve an eligible institution acting as a 
                      sponsoring organization for one or more family or 
                      group day care homes or centers that, at the time 
                      of application, is not participating in the child 
                      and adult care food program only if the State 
                      agency determines that--

[[Page 114 STAT. 416]]

                                    ``(I) the institution meets the 
                                requirements established by 
                                subparagraphs (A) and (B); and
                                    ``(II) the participation of the 
                                institution will help to ensure the 
                                delivery of benefits to otherwise 
                                unserved family or group day care homes 
                                or centers or to unserved children in an 
                                area.
                          ``(ii) Criteria for selection.--The State 
                      agency shall establish criteria for approving an 
                      eligible institution acting as a sponsoring 
                      organization for one or more family or group day 
                      care homes or centers that, at the time of 
                      application, is not participating in the child and 
                      adult care food program for the purpose of 
                      determining if the participation of the 
                      institution will help ensure the delivery of 
                      benefits to otherwise unserved family or group day 
                      care homes or centers or to unserved children in 
                      an area.
                    ``(D) Notification <<NOTE: Deadline.>>  to 
                applicants.--Not later than 30 days after the date on 
                which an applicant institution files a completed 
                application with the State agency, the State agency 
                shall notify the applicant institution whether the 
                institution has been approved or disapproved to 
                participate in the child and adult care food program.''.
            (2) Site visits.--Section 17(d)(2)(A) of the Richard B. 
        Russell National School Lunch Act (42 U.S.C. 1766(d)(2)(A)) is 
        amended--
                    (A) in clause (i), by striking ``; and'' and 
                inserting a semicolon;
                    (B) by redesignating clause (ii) as clause (iii); 
                and
                    (C) by inserting after clause (i) the following:
            ``(ii)(I) requires periodic unannounced site visits at not 
        less than 3-year intervals to sponsored child care centers and 
        family or group day care homes to identify and prevent 
        management deficiencies and fraud and abuse under the program;
            ``(II) requires at least one scheduled site visit each year 
        to sponsored child care centers and family or group day care 
        homes to identify and prevent management deficiencies and fraud 
        and abuse under the program and to improve program operations; 
        and
            ``(III) requires at least one scheduled site visit at not 
        less than 3-year intervals to sponsoring organizations and 
        nonsponsored child care centers to identify and prevent 
        management deficiencies and fraud and abuse under the program 
        and to improve program operations; and''.
            (3) Conforming amendment.--Section 17(d)(2)(B) of the 
        Richard B. Russell National School Lunch Act (42 U.S.C. 
        1766(d)(2)(B)) is amended by striking ``subsection (a)(1)'' and 
        inserting ``subsection (a)(5)''.
            (4) Program information.--
                    (A) In general.--Section 17(d) of the Richard B. 
                Russell National School Lunch Act (42 U.S.C. 1766(d)) is 
                amended by adding at the end the following:
            ``(3) Program information.--
                    ``(A) In general.--On enrollment of a child in a 
                sponsored child care center or family or group day care 
                home participating in the program, the center or home 
                (or its sponsoring organization) shall provide to the 
                child's parents or guardians--

[[Page 114 STAT. 417]]

                          ``(i) information that describes the program 
                      and its benefits; and
                          ``(ii) the name and telephone number of the 
                      sponsoring organization of the center or home and 
                      the State agency involved in the operation of the 
                      program.
                    ``(B) Form.--The information described in 
                subparagraph (A) shall be in a form and, to the maximum 
                extent practicable, language easily understandable by 
                the child's parents or guardians.''.
                    (B) Effective date.--In <<NOTE: Deadline. 42 USC 
                1766 note.>> the case of a child that is enrolled in a 
                sponsored child care center or family or group day care 
                home participating in the child and adult care food 
                program under section 17 of the Richard B. Russell 
                National School Lunch Act (42 U.S.C. 1766) before the 
                date of the enactment of this Act, the center or home 
                shall provide information to the child's parents or 
                guardians pursuant to section 17(d)(3) of that Act, as 
                added by subparagraph (A), not later than 90 days after 
                the date of the enactment of this Act.
            (5) Allowable administrative expenses for sponsoring 
        organizations.--Section 17(d) of the Richard B. Russell National 
        School Lunch Act (42 U.S.C. 1766(d)), as amended by paragraph 
        (4)(A), is amended by adding at the end the following:
            ``(4) Allowable administrative expenses for sponsoring 
        organizations.--In consultation with State agencies and 
        sponsoring organizations, the Secretary shall develop, and 
        provide for the dissemination to State agencies and sponsoring 
        organizations of, a list of allowable reimbursable 
        administrative expenses for sponsoring organizations under the 
        program.''.

    (c) Termination or Suspension of Participating Organizations.--
Section 17(d) of the Richard B. Russell National School Lunch Act (42 
U.S.C. 1766(d)), as amended by subsection (b)(5), is amended by adding 
at the end the following:
            ``(5) Termination or suspension of participating 
        organizations.--
                    ``(A) In <<NOTE: Procedures.>> general.--The 
                Secretary shall establish procedures for the termination 
                of participation by institutions and family or group day 
                care homes under the program.
                    ``(B) Standards.--Procedures established pursuant to 
                subparagraph (A) shall include standards for terminating 
                the participation of an institution or family or group 
                day care home that--
                          ``(i) engages in unlawful practices, falsifies 
                      information provided to the State agency, or 
                      conceals a criminal background; or
                          ``(ii) substantially fails to fulfill the 
                      terms of its agreement with the State agency.
                    ``(C) Corrective action.--Procedures established 
                pursuant to subparagraph (A)--
                          ``(i) shall require an entity described in 
                      subparagraph (B) to undertake corrective action; 
                      and
                          ``(ii) may require the immediate suspension of 
                      operation of the program by an entity described in 
                      subparagraph (B), without the opportunity for 
                      corrective action, if the State agency determines 
                      that there is imminent threat to the health or 
                      safety of a participant at the

[[Page 114 STAT. 418]]

                      entity or the entity engages in any activity that 
                      poses a threat to public health or safety.
                    ``(D) Hearing.--An institution or family or group 
                day care home shall be provided a fair hearing in 
                accordance with subsection (e)(1) prior to any 
                determination to terminate participation by the 
                institution or family or group day care home under the 
                program.
                    ``(E) List <<NOTE: Records.>> of disqualified 
                institutions and individuals.--
                          ``(i) In general.--The Secretary shall 
                      maintain a list of institutions, sponsored family 
                      or group day care homes, and individuals that have 
                      been terminated or otherwise disqualified from 
                      participation in the program.
                          ``(ii) Availability.--The Secretary shall make 
                      the list available to State agencies for use in 
                      approving or renewing applications by 
                      institutions, sponsored family or group day care 
                      homes, and individuals for participation in the 
                      program.''.

    (d) Recovery of Amounts From Institutions.--Section 17(f )(1) of the 
Richard B. Russell National School Lunch Act (42 U.S.C. 1766(f )(1)) is 
amended--
            (1) by striking ``(f )(1) Funds paid'' and inserting the 
        following:

    ``(f ) State Disbursements to Institutions.--
            ``(1) In general.--
                    ``(A) Requirement.--Funds paid''; and
            (2) by adding at the end the following:
                    ``(B) Fraud or abuse.--
                          ``(i) In general.--The State may recover funds 
                      disbursed under subparagraph (A) to an institution 
                      if the State determines that the institution has 
                      engaged in fraud or abuse with respect to the 
                      program or has submitted an invalid claim for 
                      reimbursement.
                          ``(ii) Payment.--Amounts recovered under 
                      clause (i)--
                                    ``(I) may be paid by the institution 
                                to the State over a period of one or 
                                more years; and
                                    ``(II) shall not be paid from funds 
                                used to provide meals and supplements.
                          ``(iii) Hearing.--An institution shall be 
                      provided a fair hearing in accordance with 
                      subsection (e)(1) prior to any determination to 
                      recover funds under this subparagraph.''.

    (e) Limitation on Administrative Expenses for Certain Sponsoring 
Organizations.--Section 17(f )(2) of the Richard B. Russell National 
School Lunch Act (42 U.S.C. 1766(f )(2)) is amended by adding at the end 
the following:
                    ``(C) Limitation on administrative expenses for 
                certain sponsoring organizations.--
                          ``(i) In general.--Except as provided in 
                      clause (ii), a sponsoring organization of a day 
                      care center may reserve not more than 15 percent 
                      of the funds provided under paragraph (1) for the 
                      administrative expenses of the organization.
                          ``(ii) Waiver.--A State may waive the 
                      requirement in clause (i) with respect to a 
                      sponsoring organization

[[Page 114 STAT. 419]]

                      if the organization provides justification to the 
                      State that the organization requires funds in 
                      excess of 15 percent of the funds provided under 
                      paragraph (1) to pay the administrative expenses 
                      of the organization.''.

    (f ) Limitations on Ability of Family or Group Day Care Homes to 
Transfer Sponsoring Organizations.--Section 17(f )(3) of the Richard B. 
Russell National School Lunch Act (42 U.S.C. 1766(f )(3)) is amended by 
striking subparagraph (D) and inserting the following:
                    ``(D) Limitations on ability of family or group day 
                care homes to transfer sponsoring organizations.--
                          ``(i) In general.--Subject to clause (ii), a 
                      State agency shall limit the ability of a family 
                      or group day care home to transfer from a 
                      sponsoring organization to another sponsoring 
                      organization more frequently than once a year.
                          ``(ii) Good cause.--The State agency may 
                      permit or require a family or group day care home 
                      to transfer from a sponsoring organization to 
                      another sponsoring organization more frequently 
                      than once a year for good cause (as determined by 
                      the State agency), including circumstances in 
                      which the sponsoring organization of the family or 
                      group day care home ceases to participate in the 
                      child and adult care food program.''.

    (g) State-wide Demonstration Projects Involving Private For-Profit 
Organizations That Provide Nonresidential Day Care Services.--
            (1) In general.--Section 17(p) of the Richard B. Russell 
        National School Lunch Act (42 U.S.C. 1766(p)) is amended--
                    (A) in the first sentence of paragraph (1), by 
                striking ``2 statewide demonstration projects'' and 
                inserting ``State-wide demonstration projects in three 
                States''; and
                    (B) in paragraph (3)--
                          (i) by inserting ``in'' after ``subsection'';
                          (ii) in subparagraph (A), by striking ``and'' 
                      at the end;
                          (iii) in subparagraph (B), by striking the 
                      period at the end and inserting ``; and''; and
                          (iv) by adding at the end the following:
            ``(C) one other State--
                    ``(i) with fewer than 60,000 children below 5 years 
                of age;
                    ``(ii) that serves more than the national average 
                proportion of children potentially eligible for 
                assistance provided under the Child Care and Development 
                Fund (as indicated in data published by the Department 
                of Health and Human Services in October 1999);
                    ``(iii) that exempts all families from cost sharing 
                requirements under programs funded by the Child Care and 
                Development Fund; and
                    ``(iv) in which State spending represents more than 
                50 percent of total expenditures made under the Child 
                Care and Development Fund.''.
            (2) Effective date.--The <<NOTE: 42 USC 1766 
        note.>> Secretary may carry out demonstration projects in the 
        State described in section 17(p)(3)(C) of the Richard B. Russell 
        National School Lunch Act, as added

[[Page 114 STAT. 420]]

        by paragraph (1)(B)(iv), beginning not earlier than October 1, 
        2001.

    (h) Technical and Training Assistance for Identification and 
Prevention of Fraud and Abuse.--Section 17(q) of the Richard B. Russell 
National School Lunch Act (42 U.S.C. 1766(q)) is amended--
            (1) by redesignating paragraph (2) as paragraph (3); and
            (2) by inserting after paragraph (1) the following:
            ``(2) Technical and training assistance for identification 
        and prevention of fraud and abuse.--As part of training and 
        technical assistance provided under paragraph (1), the Secretary 
        shall provide training on a continuous basis to State agencies, 
        and shall ensure that such training is provided to sponsoring 
        organizations, for the identification and prevention of fraud 
        and abuse under the program and to improve management of the 
        program.''.

    (i) Program for At-Risk School Children.--Section 17(r) of the 
Richard B. Russell National School Lunch Act (42 U.S.C. 1766(r)) is 
amended--
            (1) in paragraph (2), by inserting ``meals or'' before 
        ``supplements'';
            (2) in paragraph (4)--
                    (A) in the heading, by striking ``Supplement'' and 
                inserting ``Meal and supplement'';
                    (B) in subparagraph (A)--
                          (i) by striking ``only for'' and all that 
                      follows through ``(i) a supplement'' and inserting 
                      ``only for one meal per child per day and one 
                      supplement per child per day'';
                          (ii) by striking ``; and'' and inserting a 
                      period; and
                          (iii) by striking clause (ii);
                    (C) in subparagraph (B), by striking ``Rate.--A 
                supplement'' and inserting the following: ``Rates.--
                          ``(i) Meals.--A meal shall be reimbursed under 
                      this subsection at the rate established for free 
                      meals under subsection (c).
                          ``(ii) Supplements.--A supplement''; and
                    (D) in subparagraph (C), by inserting ``meal or'' 
                before ``supplement''; and
            (3) by adding at the end the following:
            ``(5) Limitation.--The Secretary shall limit reimbursement 
        under this subsection for meals served under a program to 
        institutions located in six States, of which four States shall 
        be Pennsylvania, Missouri, Delaware, and Michigan and two States 
        shall be approved by the Secretary through a competitive 
        application process.''.

    ( j) Withholding of Funds for Failure to Provide Sufficient 
Training, Technical Assistance, and Monitoring.--Section 7(a)(9)(A) of 
the Child Nutrition Act of 1966 (42 U.S.C. 1776(a)(9)(A)) is amended by 
inserting after ``the Richard B. Russell National School Lunch Act (42 
U.S.C. 1751 et seq.)'' the following: ``(including any requirement to 
provide sufficient training, technical assistance, and monitoring of the 
child and adult care food program under section 17 of that Act (42 
U.S.C. 1766))''.

[[Page 114 STAT. 421]]

SEC. 244. ADJUSTMENTS TO WIC PROGRAM.

    (a) Definition.--Section 17(b) of the Child Nutrition Act of 1966 
(42 U.S.C. 1786(b)) is amended by adding at the end the following:
            ``(21) Remote indian or native village.--The term `remote 
        Indian or Native village' means an Indian or Native village 
        that--
                    ``(A) is located in a rural area;
                    ``(B) has a population of less than 5,000 
                inhabitants; and
                    ``(C) is not accessible year-around by means of a 
                public road (as defined in section 101 of title 23, 
                United States Code).''.

    (b) Cost-of-Living Allowances for Members of Uniformed Services.--
Section 17(d)(2)(B) of the Child Nutrition Act of 1966 (42 U.S.C. 
1786(d)(2)(B)) is amended--
            (1) by striking ``income any'' and inserting ``income--
            ``(i) any'';
            (2) by striking ``quarters'' and inserting ``housing'';
            (3) by striking the period at the end and inserting ``; 
        and''; and
            (4) by adding at the end the following:
            ``(ii) any cost-of-living allowance provided under section 
        405 of title 37, United States Code, to a member of a uniformed 
        service who is on duty outside the continental United States.''.

    (c) Proof of Residency.--Section 17(d)(3) of the Child Nutrition Act 
of 1966 (42 U.S.C. 1786(d)(3)) is amended by adding at the end the 
following:
                    ``(F) Proof of residency.--An individual residing in 
                a remote Indian or Native village or an individual 
                served by an Indian tribal organization and residing on 
                a reservation or pueblo may, under standards established 
                by the Secretary, establish proof of residency under 
                this section by providing to the State agency the 
                mailing address of the individual and the name of the 
                remote Indian or Native village.''.

    (d) Adjustment of Grant.--Section 17(h)(1)(B) of the Child Nutrition 
Act of 1966 (42 U.S.C. 1786(h)(1)(B)) is amended--
            (1) in clause (i), by striking ``the fiscal year 1987'' and 
        inserting ``the preceding fiscal year''; and
            (2) in clause (ii)--
                    (A) by striking ``the fiscal year 1987'' and 
                inserting ``the preceding fiscal year''; and
                    (B) by striking subclause (I) and inserting the 
                following:
            ``(I) the value of the index for State and local government 
        purchases, as published by the Bureau of Economic Analysis of 
        the Department of Commerce, for the 12-month period ending June 
        30 of the second preceding fiscal year; and''.

    (e) Allocation of Funds.--Section 17(h)(5) of the Child Nutrition 
Act of 1966 (42 U.S.C. 1786(h)(5)) is amended by adding at the end the 
following:
                    ``(D) Remote indian or native villages.--For 
                noncontiguous States containing a significant number of 
                remote Indian or Native villages, a State agency may 
                convert amounts allocated for food benefits for a fiscal 
                year to the costs of nutrition services and 
                administration to

[[Page 114 STAT. 422]]

                the extent that the conversion is necessary to cover 
                expenditures incurred in providing services (including 
                the full cost of air transportation and other 
                transportation) to remote Indian or Native villages and 
                to provide breastfeeding support in remote Indian or 
                Native villages.''.

    (f ) Effective <<NOTE: 42 USC 1786 note.>> Dates.--
            (1) In general.--Except as provided in paragraph (2), the 
        amendments made by this section take effect on the date of the 
        enactment of this Act.
            (2) Allocation of funds.--The amendments made by subsections 
        (d) and (e) take effect on October 1, 2000.

                       Subtitle F--Other Programs

SEC. 251. AUTHORITY <<NOTE: Texas.>> TO PROVIDE LOAN IN CONNECTION WITH 
            BOLL WEEVIL ERADICATION.

    (a) Loan Authority.--Notwithstanding any other provision of law, the 
Secretary, acting through the Farm Service Agency, shall use $10,000,000 
of funds of the Commodity Credit Corporation to make a loan to the Texas 
Boll Weevil Eradication Foundation, Inc., to enable the Foundation to 
retire certain debt associated with boll weevil eradication zones which 
have ended their participation, in whole or in part, in the federally 
funded boll weevil eradication program.
    (b) Repayment Terms and Conditions.--The loan provided under 
subsection (a) shall be subject to the following terms and conditions:
            (1) Repayment shall be scheduled to begin on January 1 of 
        the year following the first year during which the boll weevil 
        eradication zone, or any part thereof, responsible for the debt 
        retired using the loan resumes participation in any federally 
        funded boll weevil eradication program.
            (2) No interest shall be charged.

    (c) Limitation.--The cost of the loan made under this section shall 
not exceed the loan subsidy sufficient to make the loan.

SEC. 252. ANIMAL DISEASE CONTROL.

    (a) Pseudorabies.--Of the amount made available under section 
261(a)(2), the Secretary shall use $7,000,000 to cover pseudorabies 
vaccination costs incurred by pork producers.
    (b) Bovine Tuberculosis.--Of the amount made available under section 
261(a)(2), the Secretary shall use $6,000,000 to respond to bovine 
tuberculosis in the State of Michigan. The funds shall be available for 
the following purposes:
            (1) The surveillance and testing of cattle and wildlife.
            (2) Research regarding bovine tuberculosis, to be conducted 
        by the Agricultural Research Service and Michigan State 
        University.
            (3) The provision of increased indemnity payments to 
        encourage the depopulation of infected herds.
            (4) The performance of diagnostic testing and treatment of 
        humans affected by bovine tuberculosis.
            (5) Slaughter surveillance.
            (6) The control and prevention of the exposure of livestock 
        to infected wildlife, including the installation of fencing to 
        minimize contact between livestock and wildlife.

[[Page 114 STAT. 423]]

            (7) The distribution of information regarding the risk and 
        control of bovine tuberculosis, including technological 
        improvements to enhance communication.

SEC. 253. EMERGENCY LOANS FOR SEED PRODUCERS.

    (a) In General.--Of the amount made available under section 
261(a)(2), the Secretary shall use $35,000,000, plus $200,000 for 
payment of administrative costs, to make no-interest loans to producers 
of the 1999 crop of grass, forage, vegetable, and sorghum seed that have 
not received payments from AgriBiotech for the seed as a result of 
bankruptcy proceedings involving AgriBiotech (referred to in this 
section as the ``bankruptcy proceedings'').
    (b) Loans.--
            (1) In general.--The amount of the loan made to a seed 
        producer under this section shall be not more than 65 percent of 
        the amount owed by AgriBiotech to the seed producer for the 1999 
        seed crop, as determined by the Secretary.
            (2) Eligibility.--To be eligible for a loan under this 
        section, the claim of a seed producer in the bankruptcy 
        proceedings must have arisen from a contract to grow seeds in 
        the United States.
            (3) Control.--In determining the amount owed by AgriBiotech 
        to a seed producer under paragraph (1), the Secretary shall 
        consider whether the seed producer has relinquished control of 
        the seed to AgriBiotech or has the seed in inventory waiting to 
        be sold.
            (4) Security.--A loan to a seed producer under this section 
        shall be secured in part by the claim of the seed producer in 
        the bankruptcy proceedings.
            (5) Repayment.--Each seed producer shall repay to the 
        Secretary, for deposit in the Treasury, the amount of the loan 
        made to the seed producer on the earlier of--
                    (A) the date of settlement of, completion of, or 
                final distribution of assets in the bankruptcy 
                proceedings involving AgriBiotech; or
                    (B) the date that is 18 months after the date on 
                which the loan was made to the seed producer.

    (c) Additional Terms.--
            (1) Shortfall in amount received from bankruptcy 
        proceedings.--If the amount that the seed producer receives as a 
        result of the proceedings described in subsection (b)(5)(A) is 
        less than the amount of the loan made to the seed producer under 
        subsection (b)(1), the seed producer shall be eligible to have 
        the balance of the loan converted, but not refinanced, to a loan 
        that has the same terms and conditions as an operating loan 
        under subtitle B of the Consolidated Farm and Rural Development 
        Act (7 U.S.C. 1941 et seq.).
            (2) Lengthy bankruptcy proceedings.--If a seed producer is 
        required to repay a loan under subsection (b)(5)(B), the seed 
        producer shall be eligible to have the balance of the loan 
        converted, but not refinanced, to a loan that has the same terms 
        and conditions as an operating loan under subtitle B of the 
        Consolidated Farm and Rural Development Act (7 U.S.C. 1941 et 
        seq.).

    (d) Limitation.--The cost of all loans made under this section shall 
not exceed $15,000,000.

[[Page 114 STAT. 424]]

SEC. 254. TEMPORARY SUSPENSION OF AUTHORITY TO COMBINE CERTAIN OFFICES.

    (a) Suspension.--During the period beginning on the date of the 
enactment of this Act and ending on June 1, 2001, the Secretary may not 
combine or take any action to combine, at the State level, offices of 
the agencies specified in subsection (b) unless the offices are located 
in the same county as of the date of the enactment of this Act.
    (b) Covered Offices.--Subsection (a) applies to an office of any of 
the following agencies:
            (1) The Farm Service Agency.
            (2) The Natural Resources Conservation Service.
            (3) The Rural Utilities Service.
            (4) The Rural Housing Service.
            (5) The Rural Business-Cooperative Service.

    (c) Report.--Not later <<NOTE: Deadline. 7 USC 1941 note.>> than 
April 1, 2001, 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 describing 
any proposed combination of offices specified in subsection (b) that 
includes a certification that the proposed combination would result in 
the lowest cost to the Federal Government over the long term.

SEC. 255. FARM OPERATING LOAN ELIGIBILITY.

    During the <<NOTE: Effective date. Termination date.>> period 
beginning on the date of the enactment of this Act and ending on 
December 31, 2002--
            (1) sections 311(c) and 319 of the Consolidated Farm and 
        Rural Development Act (7 U.S.C. 1941(c), 1949) shall have no 
        force or effect; and
            (2) in making direct loans under subtitle B of that Act (7 
        U.S.C. 1941 et seq.), the Secretary shall give priority to a 
        qualified beginning farmer or rancher who has not operated a 
        farm or ranch, or who has operated a farm or ranch for not more 
        than 5 years.

SEC. 256. WATER SYSTEMS FOR RURAL AND NATIVE VILLAGES IN ALASKA.

    Section 306D of the Consolidated Farm and Rural Development Act (7 
U.S.C. 1926d) is amended by striking subsection (d) and inserting the 
following:
    ``(d) Authorization of Appropriations.--
            ``(1) In general.--There are authorized to be appropriated 
        to carry out this section $30,000,000 for each of fiscal years 
        2001 and 2002.
            ``(2) Training and technical assistance.--Not more than 2 
        percent of the amount made available under paragraph (1) for a 
        fiscal year may be used by the State of Alaska for training and 
        technical assistance programs relating to the operation and 
        management of water and waste disposal services in rural and 
        Native villages.
            ``(3) Availability.--Funds appropriated pursuant to the 
        authorization of appropriations in paragraph (1) shall be 
        available until expended.''.

SEC. 257. CROP AND PASTURE FLOOD COMPENSATION PROGRAM.

    (a) Definition <<NOTE: 7 USC 1421 note.>>  of Covered Land.--In this 
section:
            (1) In general.--The term ``covered land'' means land that--

[[Page 114 STAT. 425]]

                    (A) was unusable for agricultural production during 
                the 2000 crop year as the result of flooding;
                    (B) was used for agricultural production during at 
                least one of the 1992 through 1999 crop years;
                    (C) is a contiguous parcel of land of at least 1 
                acre; and
                    (D) is located in a county in which producers were 
                eligible for assistance under the 1998 Flood 
                Compensation Program established under part 1439 of 
                title 7, Code of Federal Regulations.
            (2) Exclusions.--The term ``covered land'' excludes any land 
        for which a producer is insured, enrolled, or assisted during 
        the 2000 crop year under--
                    (A) a policy or plan of insurance authorized under 
                the Federal Crop Insurance Act (7 U.S.C. 1501 et seq.);
                    (B) the noninsured crop assistance program operated 
                under section 196 of the Agricultural Market Transition 
                Act (7 U.S.C. 7333);
                    (C) any crop disaster program established for the 
                2000 crop year;
                    (D) the conservation reserve program established 
                under subchapter B of chapter 1 of subtitle D of the 
                Food Security Act of 1985 (16 U.S.C. 3831 et seq.);
                    (E) the wetlands reserve program established under 
                subchapter C of chapter 1 of subtitle D of the Food 
                Security Act of 1985 (16 U.S.C. 3837 et seq.);
                    (F) any emergency watershed protection program or 
                Federal easement program that prohibits crop production 
                or grazing; or
                    (G) any other Federal or State water storage 
                program, as determined by the Secretary.

    (b) Compensation.--The <<NOTE: 7 USC 1421 note.>> Secretary shall 
use not more than $24,000,000 of funds of the Commodity Credit 
Corporation to compensate producers with covered land described with 
respect to losses from long-term flooding.

    (c) Payment Rate.--The <<NOTE: 7 USC 1421 note.>> payment rate for 
compensation provided to a producer under this section shall equal the 
average county cash rental rate per acre established by the National 
Agricultural Statistics Service for the 2000 crop year.

    (d) Payment <<NOTE: 7 USC 1421 note.>> Limitation.--The total amount 
of payments made to a person (as defined in section 1001(5) of the Food 
Security Act (7 U.S.C. 1308(5))) under this section may not exceed 
$40,000.

    (e) Conforming Amendment.--H.R. 3425 of the 106th Congress (as 
enacted into law by section 1000(a)(5) of Public Law 106-113 (113 Stat. 
1535) and included as Appendix E of that Public Law (113 Stat. 1501A-
289)) is amended in section 207 (113 Stat. 1501A-294) by inserting ``or 
Lake'' after ``Harney''.

SEC. 258. FLOOD MITIGATION NEAR PIERRE, SOUTH DAKOTA.

    (a) Requirement.--Subject to subsection (b), as soon as practicable 
after the date of the enactment of this Act, with respect to land and 
property described in the Flood Mitigation Study and Project 
Implementation Plan for the Missouri River near Pierre, South Dakota, 
prepared by the Omaha District Corps of Engineers, dated August 12, 
1999, the Secretary of the Army shall--
            (1) acquire the land and property from willing sellers; and

[[Page 114 STAT. 426]]

            (2)(A) floodproof the land;
            (B) relocate individuals located on the land;
            (C) improve infrastructure on the land; or
            (D) take other measures determined by the Secretary.

    (b) Releases.--
            (1) In general.--The Secretary shall not proceed with full 
        wintertime Oahe Powerplant releases until the Secretary amends 
        the economic analysis in effect on the date of the enactment of 
        this Act to include an assumption that the Federal Government is 
        responsible for mitigating any existing ground water flooding to 
        the land and property described in subsection (a).
            (2) Reduction.--To the extent the Secretary identifies 
        benefits of mitigating any existing ground water flooding, full 
        wintertime Oahe Powerplant releases shall be reduced consistent 
        with the economic analysis described in paragraph (1).
            (3) Minimum level.--This subsection shall not permit Oahe 
        Powerplant releases to be reduced below existing operational 
        levels.

SEC. 259. <<NOTE: 7 USC 1421 note.>> RESTORATION OF ELIGIBILITY FOR CROP 
            LOSS ASSISTANCE.

    (a) Effect of Change in Legal Structure.--In the case of an 
individual or entity that was not eligible for a payment pursuant to 
subsection (c) of section 1102 of the Agriculture, Rural Development, 
Food and Drug Administration, and Related Agencies Appropriations Act, 
1999 (as contained in section 101(a) of division A of Public Law 105-
277; 7 U.S.C. 1421 note), solely because the individual or entity 
changed the legal structure of the individual's or entity's farming 
operation, the individual or entity shall be eligible for the payment 
the individual or entity would have received pursuant to that subsection 
had the individual or entity not changed the legal structure, less the 
amount of any payment received by the individual or entity pursuant to 
subsection (b) of that section.
    (b) Multiple Farming Operations.--
            (1) Eligible individuals.--In the case of an individual not 
        described in subsection (a) that farmed acreage as a producer as 
        a part of more than one farming operation, none of which 
        received a payment pursuant to subsection (c) of section 1102 of 
        the Agriculture, Rural Development, Food and Drug 
        Administration, and Related Agencies Appropriations Act, 1999, 
        the individual shall be eligible for a payment pursuant to that 
        subsection for losses that the Secretary determines would have 
        been eligible for compensation with respect to that acreage 
        based on the individual's interest in the production from that 
        acreage.
            (2) Reduction.--A payment made pursuant to paragraph (1) to 
        an individual shall be reduced by the amount of a payment made 
        pursuant to subsection (b) of that section 1102 attributed 
        directly or indirectly to the individual with respect to the 
        acreage described in paragraph (1).

[[Page 114 STAT. 427]]

                       Subtitle G--Administration

SEC. 261. FUNDING.

    (a) Payment.--Out of any moneys in the Treasury not otherwise 
appropriated, the Secretary of the Treasury shall provide to the 
Secretary the following:
            (1) $34,000,000 for fiscal year 2000 to carry out section 
        241(a).
            (2) $465,500,000 for fiscal year 2001 to carry out the 
        following:
                    (A) Section 203 (other than subsection (f )).
                    (B) Subtitle C.
                    (C) Section 231.
                    (D) Section 241 (other than subsection (a)).
                    (E) Sections 252 and 253.

    (b) Acceptance.--The Secretary shall be entitled to receive the 
funds and shall accept the funds, without further appropriation.

SEC. 262. OBLIGATION PERIOD.

    Except as otherwise provided in this title, the Secretary and the 
Commodity Credit Corporation shall obligate and expend--
            (1) funds made available under section 261(a)(1) only during 
        fiscal year 2000; and
            (2) funds made available under section 261(a)(2), and funds 
        of the Commodity Credit Corporation made available under this 
        title, only during fiscal year 2001.

SEC. 263. <<NOTE: 7 USC 1421 note.>> REGULATIONS.

    (a) Promulgation.--As soon as practicable after the date of the 
enactment of this Act, the Secretary and the Commodity Credit 
Corporation, as appropriate, shall promulgate such regulations as are 
necessary to implement this title and the amendments made by this title. 
The promulgation of the regulations and administration of this title 
shall be made without regard to--
            (1) the notice and comment provisions of section 553 of 
        title 5, United States Code;
            (2) the Statement of Policy of the Secretary of Agriculture 
        effective July 24, 1971 (36 Fed. Reg. 13804), relating to 
        notices of proposed rulemaking and public participation in 
        rulemaking; and
            (3) chapter 35 of title 44, United States Code (commonly 
        known as the ``Paperwork Reduction Act'').

    (b) Congressional Review of Agency Rulemaking.--In carrying out this 
section, the Secretary shall use the authority provided under section 
808 of title 5, United States Code.

SEC. 264. PAYGO ADJUSTMENT.

    The Director of the Office of Management and Budget shall not make 
any estimates of changes in direct spending outlays and receipts under 
section 252(d) of the Balanced Budget and Emergency Deficit Control Act 
of 1985 (2 U.S.C. 902(d)) resulting from enactment of this title.

SEC. 265. COMMODITY CREDIT CORPORATION REIMBURSEMENT.

    Out of any moneys in the Treasury not otherwise appropriated, the 
Secretary of the Treasury shall use such sums as may be necessary to 
reimburse the Commodity Credit Corporation for net

[[Page 114 STAT. 428]]

realized losses sustained, but not previously reimbursed, under this 
title.

   TITLE III--BIOMASS <<NOTE: Biomass Research and Development Act of 
2000.>> RESEARCH AND DEVELOPMENT ACT OF 2000

SEC. 301. <<NOTE: 7 USC 7624 note.>> SHORT TITLE.

    This title may be cited as the ``Biomass Research and Development 
Act of 2000''.

SEC. 302. <<NOTE: 7 USC 7624 note.>> FINDINGS.

    Congress finds that--
            (1) conversion of biomass into biobased industrial products 
        offers outstanding potential for benefit to the national 
        interest through--
                    (A) improved strategic security and balance of 
                payments;
                    (B) healthier rural economies;
                    (C) improved environmental quality;
                    (D) near-zero net greenhouse gas emissions;
                    (E) technology export; and
                    (F) sustainable resource supply;
            (2) the key technical challenges to be overcome in order for 
        biobased industrial products to be cost-competitive are finding 
        new technology and reducing the cost of technology for 
        converting biomass into desired biobased industrial products;
            (3) biobased fuels, such as ethanol, have the clear 
        potential to be sustainable, low cost, and high performance 
        fuels that are compatible with both current and future 
        transportation systems and provide near-zero net greenhouse gas 
        emissions;
            (4) biobased chemicals have the clear potential for 
        environmentally benign product life cycles;
            (5) biobased power can--
                    (A) provide environmental benefits;
                    (B) promote rural economic development; and
                    (C) diversify energy resource options;
            (6) many biomass feedstocks suitable for industrial 
        processing show the clear potential for sustainable production, 
        in some cases resulting in improved soil fertility and carbon 
        sequestration;
            (7)(A) grain processing mills are biorefineries that produce 
        a diversity of useful food, chemical, feed, and fuel products; 
        and
            (B) technologies that result in further diversification of 
        the range of value-added biobased industrial products can meet a 
        key need for the grain processing industry;
            (8)(A) cellulosic feedstocks are attractive because of their 
        low cost and widespread availability; and
            (B) research resulting in cost-effective technology to 
        overcome the recalcitrance of cellulosic biomass would allow 
        biorefineries to produce fuels and bulk chemicals on a very 
        large scale, with a commensurately large realization of the 
        benefit described in paragraph (1);
            (9) research into the fundamentals to understand important 
        mechanisms of biomass conversion can be expected to accelerate

[[Page 114 STAT. 429]]

        the application and advancement of biomass processing technology 
        by--
                    (A) increasing the confidence and speed with which 
                new technologies can be scaled up; and
                    (B) giving rise to processing innovations based on 
                new knowledge;
            (10) the added utility of biobased industrial products 
        developed through improvements in processing technology would 
        encourage the design of feedstocks that would meet future needs 
        more effectively;
            (11) the creation of value-added biobased industrial 
        products would create new jobs in construction, manufacturing, 
        and distribution, as well as new higher-valued exports of 
        products and technology;
            (12)(A) because of the relatively short-term time horizon 
        characteristic of private sector investments, and because many 
        benefits of biomass processing are in the national interest, it 
        is appropriate for the Federal Government to provide 
        precommercial investment in fundamental research and research-
        driven innovation in the biomass processing area; and
            (B) such an investment would provide a valuable complement 
        to ongoing and past governmental support in the biomass 
        processing area; and
            (13) several prominent studies, including studies by the 
        President's Committee of Advisors on Science and Technology and 
        the National Research Council--
                    (A) support the potential for large research-driven 
                advances in technologies for production of biobased 
                industrial products as well as associated benefits; and
                    (B) document the need for a focused, integrated, and 
                innovation-driven research effort to provide the 
                appropriate progress in a timely manner.

SEC. 303. <<NOTE: 7 USC 7624 note.>> DEFINITIONS.

    In this title:
            (1) Advisory committee.--The term ``Advisory Committee'' 
        means the Biomass Research and Development Technical Advisory 
        Committee established by section 306.
            (2) Biobased industrial product.--The term ``biobased 
        industrial product'' means fuels, chemicals, building materials, 
        or electric power or heat produced from biomass.
            (3) Biomass.--The term ``biomass'' means any organic matter 
        that is available on a renewable or recurring basis, including 
        agricultural crops and trees, wood and wood wastes and residues, 
        plants (including aquatic plants), grasses, residues, fibers, 
        and animal wastes, municipal wastes, and other waste materials.
            (4) Board.--The term ``Board'' means the Biomass Research 
        and Development Board established by section 305.
            (5) Initiative.--The term ``Initiative'' means the Biomass 
        Research and Development Initiative established under section 
        307.
            (6) Institution of higher education.--The term ``institution 
        of higher education'' has the meaning given the term in section 
        102(a) of the Higher Education Act of 1965 (20 U.S.C. 1002(a)).

[[Page 114 STAT. 430]]

            (7) National laboratory.--The term ``national laboratory'' 
        has the meaning given the term ``laboratory'' in section 12(d) 
        of the Stevenson-Wydler Technology Innovation Act of 1980 (15 
        U.S.C. 3710a(d)).
            (8) Point of contact.--The term ``point of contact'' means a 
        point of contact designated under section 304(d).
            (9) Processing.--The term ``processing'' means the 
        derivation of biobased industrial products from biomass, 
        including--
                    (A) feedstock production;
                    (B) harvest and handling;
                    (C) pretreatment or thermochemical processing;
                    (D) fermentation;
                    (E) catalytic processing;
                    (F) product recovery; and
                    (G) coproduct production.
            (10) Research and development.--The term ``research and 
        development'' means research, development, and demonstration.

SEC. 304. <<NOTE: 7 USC 7624 note.>> COOPERATION AND COORDINATION IN 
            BIOMASS RESEARCH AND DEVELOPMENT.

    (a) In General.--The Secretary of Agriculture and the Secretary of 
Energy shall cooperate with respect to, and coordinate, policies and 
procedures that promote research and development leading to the 
production of biobased industrial products.
    (b) Purposes.--The purposes of the cooperation and coordination 
shall be--
            (1) to understand the key mechanisms underlying the 
        recalcitrance of biomass for conversion into biobased industrial 
        products;
            (2) to develop new and cost-effective technologies that 
        would result in large-scale commercial production of low cost 
        and sustainable biobased industrial products;
            (3) to ensure that biobased industrial products are 
        developed in a manner that enhances their economic, energy 
        security, and environmental benefits; and
            (4) to promote the development and use of agricultural and 
        energy crops for conversion into biobased industrial products.

    (c) Areas.--In carrying out this title, the Secretary of Agriculture 
and the Secretary of Energy, in consultation with heads of appropriate 
departments and agencies, shall promote research and development--
            (1) to advance the availability and widespread use of energy 
        efficient, economically competitive, and environmentally sound 
        biobased industrial products in a manner that is consistent with 
        the goals of the United States relating to sustainable and 
        secure supplies of food, chemicals, and fuel;
            (2) to ensure full consideration of Federal land and land 
        management programs as potential feedstock resources for 
        biobased industrial products; and
            (3) to assess the environmental, economic, and social impact 
        of production of biobased industrial products from biomass on a 
        large scale.

    (d) Points of Contact.--

[[Page 114 STAT. 431]]

            (1) In general.--To <<NOTE: Government 
        organization. President.>> coordinate research and development 
        programs and activities relating to biobased industrial products 
        that are carried out by their respective Departments--
                    (A) the Secretary of Agriculture shall designate, as 
                the point of contact for the Department of Agriculture, 
                an officer of the Department of Agriculture appointed by 
                the President to a position in the Department before the 
                date of the designation, by and with the advice and 
                consent of the Senate; and
                    (B) the Secretary of Energy shall designate, as the 
                point of contact for the Department of Energy, an 
                officer of the Department of Energy appointed by the 
                President to a position in the Department before the 
                date of the designation, by and with the advice and 
                consent of the Senate.
            (2) Duties.--The points of contact shall jointly--
                    (A) assist in arranging interlaboratory and site-
                specific supplemental agreements for research and 
                development projects relating to biobased industrial 
                products;
                    (B) serve as cochairpersons of the Board;
                    (C) administer the Initiative; and
                    (D) respond in writing to each recommendation of the 
                Advisory Committee made under section 306(c).

SEC. 305. <<NOTE: 7 USC 7624 note.>> BIOMASS RESEARCH AND DEVELOPMENT 
            BOARD.

    (a) Establishment.--There is established the Biomass Research and 
Development Board, which shall supersede the Interagency Council on 
Biobased Products and Bioenergy established by Executive Order No. 
13134, to coordinate programs within and among departments and agencies 
of the Federal Government for the purpose of promoting the use of 
biobased industrial products by--
            (1) maximizing the benefits deriving from Federal grants and 
        assistance; and
            (2) bringing coherence to Federal strategic planning.

    (b) Membership.--The Board shall consist of--
            (1) the point of contact of the Department of Energy 
        designated under section 304(d)(1)(B), who shall serve as 
        cochairperson of the Board;
            (2) the point of contact of the Department of Agriculture 
        designated under section 304(d)(1)(A), who shall serve as 
        cochairperson of the Board;
            (3) a senior officer of each of the Department of the 
        Interior, the Environmental Protection Agency, the National 
        Science Foundation, and the Office of Science and Technology 
        Policy, each of whom shall--
                    (A) be appointed by the head of the respective 
                agency; and
                    (B) have a rank that is equivalent to the rank of 
                the points of contact; and
            (4) at the option of the Secretary of Agriculture and the 
        Secretary of Energy, other members appointed by the Secretaries 
        (after consultation with the members described in paragraphs (1) 
        through (3)).

    (c) Duties.--The Board shall--
            (1) coordinate research and development activities relating 
        to biobased industrial products--

[[Page 114 STAT. 432]]

                    (A) between the Department of Agriculture and the 
                Department of Energy; and
                    (B) with other departments and agencies of the 
                Federal Government; and
            (2) provide recommendations to the points of contact 
        concerning administration of this title.

    (d) Funding.--Each agency represented on the Board is encouraged to 
provide funds for any purpose under this title.
    (e) Meetings.--The Board shall meet at least quarterly to enable the 
Board to carry out the duties of the Board under subsection (c).

SEC. 306. <<NOTE: 7 USC 7624 note.>> BIOMASS RESEARCH AND DEVELOPMENT 
            TECHNICAL ADVISORY COMMITTEE.

    (a) Establishment.--There is established the Biomass Research and 
Development Technical Advisory Committee, which shall supersede the 
Advisory Committee on Biobased Products and Bioenergy established by 
Executive Order No. 13134--
            (1) to advise the Secretary of Energy, the Secretary of 
        Agriculture, and the points of contact concerning--
                    (A) the technical focus and direction of requests 
                for proposals issued under the Initiative; and
                    (B) procedures for reviewing and evaluating the 
                proposals;
            (2) to facilitate consultations and partnerships among 
        Federal and State agencies, agricultural producers, industry, 
        consumers, the research community, and other interested groups 
        to carry out program activities relating to the Initiative; and
            (3) to evaluate and perform strategic planning on program 
        activities relating to the Initiative.

    (b) Membership.--
            (1) In general.--The Advisory Committee shall consist of--
                    (A) an individual affiliated with the biobased 
                industrial products industry;
                    (B) an individual affiliated with an institution of 
                higher education who has expertise in biobased 
                industrial products;
                    (C) two prominent engineers or scientists from 
                government or academia who have expertise in biobased 
                industrial products;
                    (D) an individual affiliated with a commodity trade 
                association;
                    (E) an individual affiliated with an environmental 
                or conservation organization;
                    (F) an individual associated with State government 
                who has expertise in biobased industrial products;
                    (G) an individual with expertise in energy analysis;
                    (H) an individual with expertise in the economics of 
                biobased industrial products;
                    (I) an individual with expertise in agricultural 
                economics; and
                    (J) at the option of the points of contact, other 
                members.
            (2) Appointment.--The members of the Advisory Committee 
        shall be appointed by the points of contact.

[[Page 114 STAT. 433]]

    (c) Duties.--The Advisory Committee shall--
            (1) advise the points of contact with respect to the 
        Initiative; and
            (2) evaluate whether, and make recommendations in writing to 
        the Board to ensure that--
                    (A) funds authorized for the Initiative are 
                distributed and used in a manner that is consistent with 
                the goals of the Initiative;
                    (B) the points of contact are funding proposals 
                under this title that are selected on the basis of 
                merit, as determined by an independent panel of 
                scientific and technical peers; and
                    (C) activities under this title are carried out in 
                accordance with this title.

    (d) Coordination.--To avoid duplication of effort, the Advisory 
Committee shall coordinate its activities with those of other Federal 
advisory committees working in related areas.
    (e) Meetings.--The Advisory Committee shall meet at least quarterly 
to enable the Advisory Committee to carry out the duties of the Advisory 
Committee under subsection (c).
    (f ) Terms.--Members of the Advisory Committee shall be appointed 
for a term of 3 years, except that--
            (1) one-third of the members initially appointed shall be 
        appointed for a term of 1 year; and
            (2) one-third of the members initially appointed shall be 
        appointed for a term of 2 years.

SEC. 307. <<NOTE: Grants. Contracts. 7 USC 7624 note.>> BIOMASS RESEARCH 
            AND DEVELOPMENT INITIATIVE.

    (a) In General.--The Secretary of Agriculture and the Secretary of 
Energy, acting through their respective points of contact and in 
consultation with the Board, shall establish and carry out a Biomass 
Research and Development Initiative under which competitively awarded 
grants, contracts, and financial assistance are provided to, or entered 
into with, eligible entities to carry out research on biobased 
industrial products.
    (b) Purposes.--The purposes of grants, contracts, and assistance 
under this section shall be--
            (1) to stimulate collaborative activities by a diverse range 
        of experts in all aspects of biomass processing for the purpose 
        of conducting fundamental and innovation-targeted research and 
        technology development;
            (2) to enhance creative and imaginative approaches toward 
        biomass processing that will serve to develop the next 
        generation of advanced technologies making possible low cost and 
        sustainable biobased industrial products;
            (3) to strengthen the intellectual resources of the United 
        States through the training and education of future scientists, 
        engineers, managers, and business leaders in the field of 
        biomass processing; and
            (4) to promote integrated research partnerships among 
        colleges, universities, national laboratories, Federal and State 
        research agencies, and the private sector as the best means of 
        overcoming technical challenges that span multiple research and 
        engineering disciplines and of gaining better leverage from 
        limited Federal research funds.

    (c) Eligible Entities.--

[[Page 114 STAT. 434]]

            (1) In general.--To be eligible for a grant, contract, or 
        assistance under this section, an applicant shall be--
                    (A) an institution of higher education;
                    (B) a national laboratory;
                    (C) a Federal research agency;
                    (D) a State research agency;
                    (E) a private sector entity;
                    (F) a nonprofit organization; or
                    (G) a consortium of two or more entities described 
                in subparagraphs (A) through (F).
            (2) Administration.--After consultation with the Board, the 
        points of contact shall--
                    (A) publish <<NOTE: Publication.>> annually one or 
                more joint requests for proposals for grants, contracts, 
                and assistance under this section;
                    (B) establish a priority in grants, contracts, and 
                assistance under this section for research that--
                          (i) demonstrates potential for significant 
                      advances in biomass processing;
                          (ii) demonstrates potential to substantially 
                      further scale-sensitive national objectives such 
                      as--
                                    (I) sustainable resource supply;
                                    (II) reduced greenhouse gas 
                                emissions;
                                    (III) healthier rural economies; and
                                    (IV) improved strategic security and 
                                trade balances; and
                          (iii) would improve knowledge of important 
                      biomass processing systems that demonstrate 
                      potential for commercial applications;
                    (C) require that grants, contracts, and assistance 
                under this section be awarded competitively, on the 
                basis of merit, after the establishment of procedures 
                that provide for scientific peer review by an 
                independent panel of scientific and technical peers; and
                    (D) give preference to applications that--
                          (i) involve a consortia of experts from 
                      multiple institutions; and
                          (ii) encourage the integration of disciplines 
                      and application of the best technical resources.

    (d) Uses of Grants, Contracts, and Assistance.--A grant, contract, 
or assistance under this section may be used to conduct--
            (1) research on process technology for overcoming the 
        recalcitrance of biomass, including research on key mechanisms, 
        advanced technologies, and demonstration test beds for--
                    (A) feedstock pretreatment and hydrolysis of 
                cellulose and hemicellulose, including new technologies 
                for--
                          (i) enhanced sugar yields;
                          (ii) lower overall chemical use;
                          (iii) less costly materials; and
                          (iv) cost reduction;
                    (B) development of novel organisms and other 
                approaches to substantially lower the cost of cellulase 
                enzymes and enzymatic hydrolysis, including dedicated 
                cellulase production and consolidated bioprocessing 
                strategies; and
                    (C) approaches other than enzymatic hydrolysis for 
                overcoming the recalcitrance of cellulosic biomass;

[[Page 114 STAT. 435]]

            (2) research on technologies for diversifying the range of 
        products that can be efficiently and cost-competitively produced 
        from biomass, including research on--
                    (A) metabolic engineering of biological systems 
                (including the safe use of genetically modified crops) 
                to produce novel products, especially commodity 
                products, or to increase product selectivity and 
                tolerance, with a research priority for the development 
                of biobased industrial products that can compete in 
                performance and cost with fossil-based products;
                    (B) catalytic processing to convert intermediates of 
                biomass processing into products of interest;
                    (C) separation technologies for cost-effective 
                product recovery and purification;
                    (D) approaches other than metabolic engineering and 
                catalytic conversion of intermediates of biomass 
                processing;
                    (E) advanced biomass gasification technologies, 
                including coproduction of power and heat as an 
                integrated component of biomass processing, with the 
                possibility of generating excess electricity for sale; 
                and
                    (F) related research in advanced turbine and 
                stationary fuel cell technology for production of 
                electricity from biomass; and
            (3) research aimed at ensuring the environmental performance 
        and economic viability of biobased industrial products and their 
        raw material input of biomass when considered as an integrated 
        system, including research on--
                    (A) the analysis of, and strategies to enhance, the 
                environmental performance and sustainability of biobased 
                industrial products, including research on--
                          (i) accurate measurement and analysis of 
                      greenhouse gas emissions, carbon sequestration, 
                      and carbon cycling in relation to the life cycle 
                      of biobased industrial products and feedstocks 
                      with respect to other alternatives;
                          (ii) evaluation of current and future biomass 
                      resource availability;
                          (iii) development and analysis of land 
                      management practices and alternative biomass 
                      cropping systems that ensure the environmental 
                      performance and sustainability of biomass 
                      production and harvesting;
                          (iv) the land, air, water, and biodiversity 
                      impacts of large-scale biomass production, 
                      processing, and use of biobased industrial 
                      products relative to other alternatives; and
                          (v) biomass gasification and combustion to 
                      produce electricity;
                    (B) the analysis of, and strategies to enhance, the 
                economic viability of biobased industrial products, 
                including research on--
                          (i) the cost of the required process 
                      technology;
                          (ii) the impact of coproducts, including food, 
                      animal feed, and fiber, on biobased industrial 
                      product price and large-scale economic viability; 
                      and
                          (iii) interactions between an emergent biomass 
                      refining industry and the petrochemical refining 
                      infrastructure; and

[[Page 114 STAT. 436]]

                    (C) the field and laboratory research related to 
                feedstock production with the interrelated goals of 
                enhancing the sustainability, increasing productivity, 
                and decreasing the cost of biomass processing, including 
                research on--
                          (i) altering biomass to make biomass easier 
                      and less expensive to process;
                          (ii) existing and new agricultural and energy 
                      crops that provide a sustainable resource for 
                      conversion to biobased industrial products while 
                      simultaneously serving as a source for coproducts 
                      such as food, animal feed, and fiber;
                          (iii) improved technologies for harvest, 
                      collection, transport, storage, and handling of 
                      crop and residue feedstocks; and
                          (iv) development of economically viable 
                      cropping systems that improve the conservation and 
                      restoration of marginal land; or
            (4) any research and development in technologies or 
        processes determined by the Secretary of Agriculture and the 
        Secretary of Energy, acting through their respective points of 
        contact and in consultation with the Board, to be consistent 
        with the purposes described in subsection (b) and the priority 
        described in subsection (c)(2)(B).

    (e) Technology and Information Transfer to Agricultural Users.--
            (1) In general.--The Administrator of the Cooperative State 
        Research, Education, and Extension Service and the Chief of the 
        Natural Resources Conservation Service shall ensure that 
        applicable research results and technologies from the Initiative 
        are adapted, made available, and disseminated through their 
        respective services, as appropriate.
            (2) Report.--Not later <<NOTE: Deadline.>> than 5 years 
        after the date of the enactment of this Act, the Administrator 
        of the Cooperative State Research, Education, and Extension 
        Service and the Chief of the Natural Resources Conservation 
        Service shall submit to the committees of Congress with 
        jurisdiction over the Initiative a report on the activities 
        conducted by the services under this subsection.

    (f ) Authorization of Appropriations.--In addition to funds 
appropriated for biomass research and development under the general 
authority of the Secretary of Energy to conduct research and development 
programs (which may also be used to carry out this title), there are 
authorized to be appropriated to the Department of Agriculture to carry 
out this title $49,000,000 for each of fiscal years 2000 through 2005.

SEC. 308. <<NOTE: 7 USC 7624 note.>> ADMINISTRATIVE SUPPORT AND FUNDS.

    (a) In General.--To the extent administrative support and funds are 
not provided by other agencies under subsection (b), the Secretary of 
Energy and the Secretary of Agriculture may provide such administrative 
support and funds of the Department of Energy and the Department of 
Agriculture to the Board and the Advisory Committee as are necessary to 
enable the Board and the Advisory Committee to carry out their duties 
under this title.
    (b) Other Agencies.--The heads of the agencies referred to in 
section 305(b)(3), and the other members appointed under section

[[Page 114 STAT. 437]]

305(b)(4), may, and are encouraged to, provide administrative support 
and funds of their respective agencies to the Board and the Advisory 
Committee.
    (c) Limitation.--Not more than 4 percent of the amount appropriated 
for each fiscal year under section 307(f ) may be used to pay the 
administrative costs of carrying out this title.

SEC. 309. <<NOTE: 7 USC 7624 note.>> REPORTS.

    (a) Initial <<NOTE: Deadline.>> Report.--Not later than 180 days 
after the date of the enactment of this Act, the Secretary of Energy and 
the Secretary of Agriculture shall jointly submit to Congress a report 
that--
            (1) identifies the points of contact, the members of the 
        Board, and the members of the Advisory Committee;
            (2) describes the status of current biobased industrial 
        product research and development efforts in both the Federal 
        Government and private sector;
            (3) includes a section prepared by the Board that 
        establishes a set of criteria to assess the potential of 
        biobased industrial products, which shall include for both 
        biomass production and transformation into biobased industrial 
        products--
                    (A) an energy accounting;
                    (B) an environmental impact assessment; and
                    (C) an economic assessment; and
            (4) describes the research and development goals of the 
        Initiative, including how funds will be allocated in order to 
        accomplish those goals.

    (b) Annual Reports.--For each fiscal year for which funds are made 
available to carry out this title, the Secretary of Energy and the 
Secretary of Agriculture shall jointly submit to Congress a detailed 
report on--
            (1) the status and progress of the Initiative, including a 
        report from the Advisory Committee on whether funds appropriated 
        for the Initiative have been distributed and used in a manner 
        that--
                    (A) is consistent with the purposes described in 
                section 307(b);
                    (B) uses the set of criteria established under 
                subsection (a)(3); and
                    (C) takes into account any recommendations that have 
                been made by the Advisory Committee;
            (2) the general status of cooperation and research and 
        development efforts carried out at each agency with respect to 
        biobased industrial products, including a report from the 
        Advisory Committee on whether the points of contact are funding 
        proposals that are selected under section 307(c)(2)(C); and
            (3) the plans of the Secretary of Energy and the Secretary 
        of Agriculture for addressing concerns raised in the report, 
        including concerns raised by the Advisory Committee.

SEC. 310. <<NOTE: 7 USC 7624 note.>> TERMINATION OF AUTHORITY.

    The authority provided under this title shall terminate on December 
31, 2005.

[[Page 114 STAT. 438]]

       TITLE IV--PLANT <<NOTE: Plant Protection Act. Commerce and 
trade. Exports and imports.>> PROTECTION ACT

SEC. 401. <<NOTE: 7 USC 7701 note.>> SHORT TITLE.

    This title may be cited as the ``Plant Protection Act''.

SEC. 402. <<NOTE: 7 USC 7701.>> FINDINGS.

    Congress finds that--
            (1) the detection, control, eradication, suppression, 
        prevention, or retardation of the spread of plant pests or 
        noxious weeds is necessary for the protection of the 
        agriculture, environment, and economy of the United States;
            (2) biological control is often a desirable, low-risk means 
        of ridding crops and other plants of plant pests and noxious 
        weeds, and its use should be facilitated by the Department of 
        Agriculture, other Federal agencies, and States whenever 
        feasible;
            (3) it is the responsibility of the Secretary to facilitate 
        exports, imports, and interstate commerce in agricultural 
        products and other commodities that pose a risk of harboring 
        plant pests or noxious weeds in ways that will reduce, to the 
        extent practicable, as determined by the Secretary, the risk of 
        dissemination of plant pests or noxious weeds;
            (4) decisions affecting imports, exports, and interstate 
        movement of products regulated under this title shall be based 
        on sound science;
            (5) the smooth movement of enterable plants, plant products, 
        biological control organisms, or other articles into, out of, or 
        within the United States is vital to the United State's economy 
        and should be facilitated to the extent possible;
            (6) export markets could be severely impacted by the 
        introduction or spread of plant pests or noxious weeds into or 
        within the United States;
            (7) the unregulated movement of plant pests, noxious weeds, 
        plants, certain biological control organisms, plant products, 
        and articles capable of harboring plant pests or noxious weeds 
        could present an unacceptable risk of introducing or spreading 
        plant pests or noxious weeds;
            (8) the existence on any premises in the United States of a 
        plant pest or noxious weed new to or not known to be widely 
        prevalent in or distributed within and throughout the United 
        States could constitute a threat to crops and other plants or 
        plant products of the United States and burden interstate 
        commerce or foreign commerce; and
            (9) all plant pests, noxious weeds, plants, plant products, 
        articles capable of harboring plant pests or noxious weeds 
        regulated under this title are in or affect interstate commerce 
        or foreign commerce.

SEC. 403. <<NOTE: 7 USC 7702.>> DEFINITIONS.

    In this title:
            (1) Article.--The term ``article'' means any material or 
        tangible object that could harbor plant pests or noxious weeds.
            (2) Biological control organism.--The term ``biological 
        control organism'' means any enemy, antagonist, or competitor 
        used to control a plant pest or noxious weed.

[[Page 114 STAT. 439]]

            (3) Enter and entry.--The terms ``enter'' and ``entry'' mean 
        to move into, or the act of movement into, the commerce of the 
        United States.
            (4) Export and exportation.--The terms ``export'' and 
        ``exportation'' mean to move from, or the act of movement from, 
        the United States to any place outside the United States.
            (5) Import and importation.--The terms ``import'' and 
        ``importation'' mean to move into, or the act of movement into, 
        the territorial limits of the United States.
            (6) Interstate.--The term ``interstate'' means--
                    (A) from one State into or through any other State; 
                or
                    (B) within the District of Columbia, Guam, the 
                Virgin Islands of the United States, or any other 
                territory or possession of the United States.
            (7) Interstate commerce.--The term ``interstate commerce'' 
        means trade, traffic, or other commerce--
                    (A) between a place in a State and a point in 
                another State, or between points within the same State 
                but through any place outside that State; or
                    (B) within the District of Columbia, Guam, the 
                Virgin Islands of the United States, or any other 
                territory or possession of the United States.
            (8) Means of conveyance.--The term ``means of conveyance'' 
        means any personal property used for or intended for use for the 
        movement of any other personal property.
            (9) Move and related terms.--The terms ``move'', ``moving'', 
        and ``movement'' mean--
                    (A) to carry, enter, import, mail, ship, or 
                transport;
                    (B) to aid, abet, cause, or induce the carrying, 
                entering, importing, mailing, shipping, or transporting;
                    (C) to offer to carry, enter, import, mail, ship, or 
                transport;
                    (D) to receive to carry, enter, import, mail, ship, 
                or transport;
                    (E) to release into the environment; or
                    (F) to allow any of the activities described in a 
                preceding subparagraph.
            (10) Noxious weed.--The term ``noxious weed'' means any 
        plant or plant product that can directly or indirectly injure or 
        cause damage to crops (including nursery stock or plant 
        products), livestock, poultry, or other interests of 
        agriculture, irrigation, navigation, the natural resources of 
        the United States, the public health, or the environment.
            (11) Permit.--The term ``permit'' means a written or oral 
        authorization, including by electronic methods, by the Secretary 
        to move plants, plant products, biological control organisms, 
        plant pests, noxious weeds, or articles under conditions 
        prescribed by the Secretary.
            (12) Person.--The term ``person'' means any individual, 
        partnership, corporation, association, joint venture, or other 
        legal entity.
            (13) Plant.--The term ``plant'' means any plant (including 
        any plant part) for or capable of propagation, including a tree, 
        a tissue culture, a plantlet culture, pollen, a shrub, a vine, a 
        cutting, a graft, a scion, a bud, a bulb, a root, and a seed.

[[Page 114 STAT. 440]]

            (14) Plant pest.--The term ``plant pest'' means any living 
        stage of any of the following that can directly or indirectly 
        injure, cause damage to, or cause disease in any plant or plant 
        product:
                    (A) A protozoan.
                    (B) A nonhuman animal.
                    (C) A parasitic plant.
                    (D) A bacterium.
                    (E) A fungus.
                    (F) A virus or viroid.
                    (G) An infectious agent or other pathogen.
                    (H) Any article similar to or allied with any of the 
                articles specified in the preceding subparagraphs.
            (15) Plant product.--The term ``plant product'' means--
                    (A) any flower, fruit, vegetable, root, bulb, seed, 
                or other plant part that is not included in the 
                definition of plant; or
                    (B) any manufactured or processed plant or plant 
                part.
            (16) Secretary.--The term ``Secretary'' means the Secretary 
        of Agriculture.
            (17) State.--The term ``State'' means any of the several 
        States of the United States, the Commonwealth of the Northern 
        Mariana Islands, the Commonwealth of Puerto Rico, the District 
        of Columbia, Guam, the Virgin Islands of the United States, or 
        any other territory or possession of the United States.
            (18) Systems approach.--For the purposes of section 412(e), 
        the term ``systems approach'' means a defined set of 
        phytosanitary procedures, at least two of which have an 
        independent effect in mitigating pest risk associated with the 
        movement of commodities.
            (19) This title.--Except when used in this section, the term 
        ``this title'' includes any regulation or order issued by the 
        Secretary under the authority of this title.
            (20) United states.--The term ``United States'' means all of 
        the States.

                      Subtitle A--Plant Protection

SEC. 411. <<NOTE: 7 USC 7711.>> REGULATION OF MOVEMENT OF PLANT PESTS.

    (a) Prohibition of Unauthorized Movement of Plant Pests.--Except as 
provided in subsection (c), no person shall import, enter, export, or 
move in interstate commerce any plant pest, unless the importation, 
entry, exportation, or movement is authorized under general or specific 
permit and is in accordance with such regulations as the Secretary may 
issue to prevent the introduction of plant pests into the United States 
or the dissemination of plant pests within the United States.
    (b) Requirements for Processes.--The Secretary shall ensure that the 
processes used in developing regulations under subsection (a) governing 
consideration of import requests are based on sound science and are 
transparent and accessible.
    (c) Authorization of Movement of Plant Pests by Regulation.--
            (1) Exception to permit requirement.--The Secretary may 
        issue regulations to allow the importation, entry, exportation, 
        or movement in interstate commerce of specified plant

[[Page 114 STAT. 441]]

        pests without further restriction if the Secretary finds that a 
        permit under subsection (a) is not necessary.
            (2) Petition to add or remove plant pests from regulation.--
        Any person may petition the Secretary to add a plant pest to, or 
        remove a plant pest from, the regulations issued by the 
        Secretary under paragraph (1).
            (3) Response to petition by the secretary.--In the case of a 
        petition submitted under paragraph (2), the Secretary shall act 
        on the petition within a reasonable time and notify the 
        petitioner of the final action the Secretary takes on the 
        petition. The Secretary's determination on the petition shall be 
        based on sound science.

    (d) Prohibition of Unauthorized Mailing of Plant Pests.--
            (1) In general.--Any letter, parcel, box, or other package 
        containing any plant pest, whether sealed as letter-rate postal 
        matter or not, is nonmailable and shall not knowingly be 
        conveyed in the mail or delivered from any post office or by any 
        mail carrier, unless the letter, parcel, box, or other package 
        is mailed in compliance with such regulations as the Secretary 
        may issue to prevent the dissemination of plant pests into the 
        United States or interstate.
            (2) Application of postal laws and regulations.--Nothing in 
        this subsection authorizes any person to open any mailed letter 
        or other mailed sealed matter except in accordance with the 
        postal laws and regulations.

    (e) Regulations.--Regulations issued by the Secretary to implement 
subsections (a), (c), and (d) may include provisions requiring that any 
plant pest imported, entered, to be exported, moved in interstate 
commerce, mailed, or delivered from any post office--
            (1) be accompanied by a permit issued by the Secretary prior 
        to the importation, entry, exportation, movement in interstate 
        commerce, mailing, or delivery of the plant pest;
            (2) be accompanied by a certificate of inspection issued (in 
        a manner and form required by the Secretary) by appropriate 
        officials of the country or State from which the plant pest is 
        to be moved;
            (3) be raised under post-entry quarantine conditions by or 
        under the supervision of the Secretary for the purposes of 
        determining whether the plant pest--
                    (A) may be infested with other plant pests;
                    (B) may pose a significant risk of causing injury 
                to, damage to, or disease in any plant or plant product; 
                or
                    (C) may be a noxious weed; and
            (4) be subject to remedial measures the Secretary determines 
        to be necessary to prevent the spread of plant pests.

SEC. 412. <<NOTE: 7 USC 7712.>> REGULATION OF MOVEMENT OF PLANTS, PLANT 
            PRODUCTS, BIOLOGICAL CONTROL ORGANISMS, NOXIOUS WEEDS, 
            ARTICLES, AND MEANS OF CONVEYANCE.

    (a) In General.--The Secretary may prohibit or restrict the 
importation, entry, exportation, or movement in interstate commerce of 
any plant, plant product, biological control organism, noxious weed, 
article, or means of conveyance, if the Secretary determines that the 
prohibition or restriction is necessary to prevent the introduction into 
the United States or the dissemination of a plant pest or noxious weed 
within the United States.

[[Page 114 STAT. 442]]

    (b) Policy.--The Secretary shall ensure that processes used in 
developing regulations under this section governing consideration of 
import requests are based on sound science and are transparent and 
accessible.
    (c) Regulations.--The Secretary may issue regulations to implement 
subsection (a), including regulations requiring that any plant, plant 
product, biological control organism, noxious weed, article, or means of 
conveyance imported, entered, to be exported, or moved in interstate 
commerce--
            (1) be accompanied by a permit issued by the Secretary prior 
        to the importation, entry, exportation, or movement in 
        interstate commerce;
            (2) be accompanied by a certificate of inspection issued (in 
        a manner and form required by the Secretary) by appropriate 
        officials of the country or State from which the plant, plant 
        product, biological control organism, noxious weed, article, or 
        means of conveyance is to be moved;
            (3) be subject to remedial measures the Secretary determines 
        to be necessary to prevent the spread of plant pests or noxious 
        weeds; and
            (4) with respect to plants or biological control organisms, 
        be grown or handled under post-entry quarantine conditions by or 
        under the supervision of the Secretary for the purposes of 
        determining whether the plant or biological control organism may 
        be infested with plant pests or may be a plant pest or noxious 
        weed.

    (d) Notice.--Not <<NOTE: Deadline. Publication. Public 
information.>> later than 1 year after the date of the enactment of this 
Act, the Secretary shall publish for public comment a notice describing 
the procedures and standards that govern the consideration of import 
requests. The notice shall--
            (1) specify how public input will be sought in advance of 
        and during the process of promulgating regulations necessitating 
        a risk assessment in order to ensure a fully transparent and 
        publicly accessible process; and
            (2) include consideration of the following:
                    (A) Public announcement of import requests that will 
                necessitate a risk assessment.
                    (B) A process for assigning major/nonroutine or 
                minor/routine status to such requests based on current 
                state of supporting scientific information.
                    (C) A process for assigning priority to requests.
                    (D) Guidelines for seeking relevant scientific and 
                economic information in advance of initiating informal 
                rulemaking.
                    (E) Guidelines for ensuring availability and 
                transparency of assumptions and uncertainties in the 
                risk assessment process including applicable risk 
                mitigation measures relied upon individually or as 
                components of a system of mitigative measures proposed 
                consistent with the purposes of this title.

    (e) Study and Report on Systems Approach.--
            (1) Study.--The Secretary shall conduct a study of the role 
        for and application of systems approaches designed to guard 
        against the introduction of plant pathogens into the United 
        States associated with proposals to import plants or plant 
        products into the United States.

[[Page 114 STAT. 443]]

            (2) Participation by scientists.--In conducting the study 
        the Secretary shall ensure participation by scientists from 
        State departments of agriculture, colleges and universities, the 
        private sector, and the Agricultural Research Service.
            (3) Report.--Not <<NOTE: Deadline.>> later than 2 years 
        after the date of the enactment of this Act, the Secretary shall 
        submit a report on the results of the study conducted under this 
        section to the Committee on Agriculture, Nutrition, and Forestry 
        of the Senate and the Committee on Agriculture of the House of 
        Representatives.

    (f ) Noxious Weeds.--
            (1) Regulations.--In the case of noxious weeds, the 
        Secretary may publish, by regulation, a list of noxious weeds 
        that are prohibited or restricted from entering the United 
        States or that are subject to restrictions on interstate 
        movement within the United States.
            (2) Petition to add or remove plants from regulation.--Any 
        person may petition the Secretary to add a plant species to, or 
        remove a plant species from, the regulations issued by the 
        Secretary under this subsection.
            (3) Duties of the secretary.--In the case of a petition 
        submitted under paragraph (2), the Secretary shall act on the 
        petition within a reasonable time and notify the petitioner of 
        the final action the Secretary takes on the petition. The 
        Secretary's determination on the petition shall be based on 
        sound science.

    (g) Biological Control Organisms.--
            (1) Regulations.--In the case of biological control 
        organisms, the Secretary may publish, by regulation, a list of 
        organisms whose movement in interstate commerce is not 
        prohibited or restricted. Any listing may take into account 
        distinctions between organisms such as indigenous, 
        nonindigenous, newly introduced, or commercially raised.
            (2) Petition to add or remove biological control organisms 
        from the regulations.--Any person may petition the Secretary to 
        add a biological control organism to, or remove a biological 
        control organism from, the regulations issued by the Secretary 
        under this subsection.
            (3) Duties of the secretary.--In the case of a petition 
        submitted under paragraph (2), the Secretary shall act on the 
        petition within a reasonable time and notify the petitioner of 
        the final action the Secretary takes on the petition. The 
        Secretary's determination on the petition shall be based on 
        sound science.

SEC. 413. <<NOTE: 7 USC 7713.>> NOTIFICATION AND HOLDING REQUIREMENTS 
            UPON ARRIVAL.

    (a) Duty of Secretary of the Treasury.--
            (1) Notification.--The Secretary of the Treasury shall 
        promptly notify the Secretary of Agriculture of the arrival of 
        any plant, plant product, biological control organism, plant 
        pest, or noxious weed at a port of entry.
            (2) Holding.--The Secretary of the Treasury shall hold a 
        plant, plant product, biological control organism, plant pest, 
        or noxious weed for which notification is made under paragraph 
        (1) at the port of entry until the plant, plant product, 
        biological control organism, plant pest, or noxious weed--

[[Page 114 STAT. 444]]

                    (A) is inspected and authorized for entry into or 
                transit movement through the United States; or
                    (B) is otherwise released by the Secretary of 
                Agriculture.
            (3) Exceptions.--Paragraphs (1) and (2) shall not apply to 
        any plant, plant product, biological control organism, plant 
        pest, or noxious weed that is imported from a country or region 
        of a country designated by the Secretary of Agriculture, 
        pursuant to regulations, as exempt from the requirements of such 
        paragraphs.

    (b) Duty of Responsible Parties.--
            (1) Notification.--The person responsible for any plant, 
        plant product, biological control organism, plant pest, noxious 
        weed, article, or means of conveyance required to have a permit 
        under section 411 or 412 shall provide the notification 
        described in paragraph (3) as soon as possible after the arrival 
        of the plant, plant product, biological control organism, plant 
        pest, noxious weed, article, or means of conveyance at a port of 
        entry and before the plant, plant product, biological control 
        organism, plant pest, noxious weed, article, or means of 
        conveyance is moved from the port of entry.
            (2) Submission.--The notification shall be provided to the 
        Secretary, or, at the Secretary's direction, to the proper 
        official of the State to which the plant, plant product, 
        biological control organism, plant pest, noxious weed, article, 
        or means of conveyance is destined, or both, as the Secretary 
        may prescribe.
            (3) Elements of notification.--The notification shall 
        consist of the following:
                    (A) The name and address of the consignee.
                    (B) The nature and quantity of the plant, plant 
                product, biological control organism, plant pest, 
                noxious weed, article, or means of conveyance proposed 
                to be moved.
                    (C) The country and locality where the plant, plant 
                product, biological control organism, plant pest, 
                noxious weed, article, or means of conveyance was grown, 
                produced, or located.

    (c) Prohibition on Movement of Items Without Authorization.--No 
person shall move from a port of entry or interstate any imported plant, 
plant product, biological control organism, plant pest, noxious weed, 
article, or means of conveyance unless the imported plant, plant 
product, biological control organism, plant pest, noxious weed, article, 
or means of conveyance--
            (1) is inspected and authorized for entry into or transit 
        movement through the United States; or
            (2) is otherwise released by the Secretary.

SEC. 414. <<NOTE: 7 USC 7714.>> GENERAL REMEDIAL MEASURES FOR NEW PLANT 
            PESTS AND NOXIOUS WEEDS.

    (a) Authority To Hold, Treat, or Destroy Items.--If the Secretary 
considers it necessary in order to prevent the dissemination of a plant 
pest or noxious weed that is new to or not known to be widely prevalent 
or distributed within and throughout the United States, the Secretary 
may hold, seize, quarantine, treat, apply other remedial measures to, 
destroy, or otherwise dispose of any plant, plant pest, noxious weed, 
biological control organism, plant product, article, or means of 
conveyance that--

[[Page 114 STAT. 445]]

            (1) is moving into or through the United States or 
        interstate, or has moved into or through the United States or 
        interstate, and--
                    (A) the Secretary has reason to believe is a plant 
                pest or noxious weed or is infested with a plant pest or 
                noxious weed at the time of the movement; or
                    (B) is or has been otherwise in violation of this 
                title;
            (2) has not been maintained in compliance with a post-entry 
        quarantine requirement; or
            (3) is the progeny of any plant, biological control 
        organism, plant product, plant pest, or noxious weed that is 
        moving into or through the United States or interstate, or has 
        moved into the United States or interstate, in violation of this 
        title.

    (b) Authority To Order an Owner To Treat or Destroy.--
            (1) In general.--The Secretary may order the owner of any 
        plant, biological control organism, plant product, plant pest, 
        noxious weed, article, or means of conveyance subject to action 
        under subsection (a), or the owner's agent, to treat, apply 
        other remedial measures to, destroy, or otherwise dispose of the 
        plant, biological control organism, plant product, plant pest, 
        noxious weed, article, or means of conveyance, without cost to 
        the Federal Government and in the manner the Secretary considers 
        appropriate.
            (2) Failure to comply.--If the owner or agent of the owner 
        fails to comply with the Secretary's order under this 
        subsection, the Secretary may take an action authorized by 
        subsection (a) and recover from the owner or agent of the owner 
        the costs of any care, handling, application of remedial 
        measures, or disposal incurred by the Secretary in connection 
        with actions taken under subsection (a).

    (c) Classification System.--
            (1) Development required.--To facilitate control of noxious 
        weeds, the Secretary may develop a classification system to 
        describe the status and action levels for noxious weeds. The 
        classification system may include the current geographic 
        distribution, relative threat, and actions initiated to prevent 
        introduction or distribution.
            (2) Management plans.--In conjunction with the 
        classification system, the Secretary may develop integrated 
        management plans for noxious weeds for the geographic region or 
        ecological range where the noxious weed is found in the United 
        States.

    (d) Application of Least Drastic Action.--No plant, biological 
control organism, plant product, plant pest, noxious weed, article, or 
means of conveyance shall be destroyed, exported, or returned to the 
shipping point of origin, or ordered to be destroyed, exported, or 
returned to the shipping point of origin under this section unless, in 
the opinion of the Secretary, there is no less drastic action that is 
feasible and that would be adequate to prevent the dissemination of any 
plant pest or noxious weed new to or not known to be widely prevalent or 
distributed within and throughout the United States.

SEC. 415. <<NOTE: 7 USC 7715.>> DECLARATION OF EXTRAORDINARY EMERGENCY 
            AND RESULTING AUTHORITIES.

    (a) Authority To Declare.--If the Secretary determines that an 
extraordinary emergency exists because of the presence of a

[[Page 114 STAT. 446]]

plant pest or noxious weed that is new to or not known to be widely 
prevalent in or distributed within and throughout the United States and 
that the presence of the plant pest or noxious weed threatens plants or 
plant products of the United States, the Secretary may--
            (1) hold, seize, quarantine, treat, apply other remedial 
        measures to, destroy, or otherwise dispose of, any plant, 
        biological control organism, plant product, article, or means of 
        conveyance that the Secretary has reason to believe is infested 
        with the plant pest or noxious weed;
            (2) quarantine, treat, or apply other remedial measures to 
        any premises, including any plants, biological control 
        organisms, plant products, articles, or means of conveyance on 
        the premises, that the Secretary has reason to believe is 
        infested with the plant pest or noxious weed;
            (3) quarantine any State or portion of a State in which the 
        Secretary finds the plant pest or noxious weed or any plant, 
        biological control organism, plant product, article, or means of 
        conveyance that the Secretary has reason to believe is infested 
        with the plant pest or noxious weed; and
            (4) prohibit or restrict the movement within a State of any 
        plant, biological control organism, plant product, article, or 
        means of conveyance when the Secretary determines that the 
        prohibition or restriction is necessary to prevent the 
        dissemination of the plant pest or noxious weed or to eradicate 
        the plant pest or noxious weed.

    (b) Required Finding of Emergency.--The Secretary may take action 
under this section only upon finding, after review and consultation with 
the Governor or other appropriate official of the State affected, that 
the measures being taken by the State are inadequate to eradicate the 
plant pest or noxious weed.
    (c) Notification Procedures.--
            (1) In <<NOTE: Federal Register, publication.>> general.--
        Except as provided in paragraph (2), before any action is taken 
        in any State under this section, the Secretary shall notify the 
        Governor or other appropriate official of the State affected, 
        issue a public announcement, and file for publication in the 
        Federal Register a statement of--
                    (A) the Secretary's findings;
                    (B) the action the Secretary intends to take;
                    (C) the reasons for the intended action; and
                    (D) where practicable, an estimate of the 
                anticipated duration of the extraordinary emergency.
            (2) Time sensitive actions.--If it is not possible to file 
        for publication in the Federal Register prior to taking action, 
        the filing shall be made within a reasonable time, not to exceed 
        10 business days, after commencement of the action.

    (d) Application of Least Drastic Action.--No plant, biological 
control organism, plant product, plant pest, noxious weed, article, or 
means of conveyance shall be destroyed, exported, or returned to the 
shipping point of origin, or ordered to be destroyed, exported, or 
returned to the shipping point of origin under this section unless, in 
the opinion of the Secretary, there is no less drastic action that is 
feasible and that would be adequate to prevent the dissemination of any 
plant pest or noxious weed new to or not known to be widely prevalent or 
distributed within and throughout the United States.

[[Page 114 STAT. 447]]

    (e) Payment of Compensation.--The Secretary may pay compensation to 
any person for economic losses incurred by the person as a result of 
action taken by the Secretary under this section. The determination by 
the Secretary of the amount of any compensation to be paid under this 
subsection shall be final and shall not be subject to judicial review.

SEC. 416. <<NOTE: 7 USC 7716.>> RECOVERY OF COMPENSATION FOR 
            UNAUTHORIZED ACTIVITIES.

    (a) Recovery Action.--The owner of any plant, plant biological 
control organism, plant product, plant pest, noxious weed, article, or 
means of conveyance destroyed or otherwise disposed of by the Secretary 
under section 414 or 415 may bring an action against the United States 
to recover just compensation for the destruction or disposal of the 
plant, plant biological control organism, plant product, plant pest, 
noxious weed, article, or means of conveyance (not including 
compensation for loss due to delays incident to determining eligibility 
for importation, entry, exportation, movement in interstate commerce, or 
release into the environment), but only if the owner establishes that 
the destruction or disposal was not authorized under this title.
    (b) Time for Action; Location.--An action under this section shall 
be brought not later than 1 year after the destruction or disposal of 
the plant, plant biological control organism, plant product, plant pest, 
noxious weed, article, or means of conveyance involved. The action may 
be brought in any United States district court where the owner is found, 
resides, transacts business, is licensed to do business, or is 
incorporated.

SEC. 417. <<NOTE: 7 USC 7717.>> CONTROL OF GRASSHOPPERS AND MORMON 
            CRICKETS.

    (a) In General.--Subject to the availability of funds pursuant to 
this section, the Secretary shall carry out a program to control 
grasshoppers and Mormon crickets on all Federal lands to protect 
rangeland.
    (b) Transfer Authority.--
            (1) In general.--Subject to paragraph (3), upon the request 
        of the Secretary of Agriculture, the Secretary of the Interior 
        shall transfer to the Secretary of Agriculture, from any no-year 
        appropriations, funds for the prevention, suppression, and 
        control of actual or potential grasshopper and Mormon cricket 
        outbreaks on Federal lands under the jurisdiction of the 
        Secretary of the Interior. The transferred funds shall be 
        available only for the payment of obligations incurred on such 
        Federal lands.
            (2) Transfer requests.--Requests for the transfer of funds 
        pursuant to this subsection shall be made as promptly as 
        possible by the Secretary.
            (3) Limitation.--Funds transferred pursuant to this 
        subsection may not be used by the Secretary until funds 
        specifically appropriated to the Secretary for grasshopper 
        control have been exhausted.
            (4) Replenishment of transferred funds.--Funds transferred 
        pursuant to this subsection shall be replenished by supplemental 
        or regular appropriations, which shall be requested as promptly 
        as possible.

    (c) Treatment for Grasshoppers and Mormon Crickets.--
            (1) In general.--Subject to the availability of funds 
        pursuant to this section, on request of the administering agency

[[Page 114 STAT. 448]]

        or the agriculture department of an affected State, the 
        Secretary, to protect rangeland, shall immediately treat 
        Federal, State, or private lands that are infested with 
        grasshoppers or Mormon crickets at levels of economic 
        infestation, unless the Secretary determines that delaying 
        treatment will not cause greater economic damage to adjacent 
        owners of rangeland.
            (2) Other programs.--In carrying out this section, the 
        Secretary shall work in conjunction with other Federal, State, 
        and private prevention, control, or suppression efforts to 
        protect rangeland.

    (d) Federal Cost Share of Treatment.--
            (1) Control on federal lands.--Out of funds made available 
        or transferred under this section, the Secretary shall pay 100 
        percent of the cost of grasshopper or Mormon cricket control on 
        Federal lands to protect rangeland.
            (2) Control on state lands.--Out of funds made available 
        under this section, the Secretary shall pay 50 percent of the 
        cost of grasshopper or Mormon cricket control on State lands.
            (3) Control on private lands.--Out of funds made available 
        under this section, the Secretary shall pay 33.3 percent of the 
        cost of grasshopper or Mormon cricket control on private lands.

    (e) Training.--From appropriated funds made available or transferred 
by the Secretary of the Interior to the Secretary of Agriculture for 
such purposes, the Secretary of Agriculture shall provide adequate 
funding for a program to train personnel to accomplish effectively the 
objective of this section.

SEC. 418. <<NOTE: 7 USC 7718.>> CERTIFICATION FOR EXPORTS.

    The Secretary may certify as to the freedom of plants, plant 
products, or biological control organisms from plant pests or noxious 
weeds, or the exposure of plants, plant products, or biological control 
organisms to plant pests or noxious weeds, according to the 
phytosanitary or other requirements of the countries to which the 
plants, plant products, or biological control organisms may be exported.

                 Subtitle B--Inspection and Enforcement

SEC. 421. <<NOTE: 7 USC 7731.>> INSPECTIONS, SEIZURES, AND WARRANTS.

    (a) Role of Attorney General.--The activities authorized by this 
section shall be carried out consistent with guidelines approved by the 
Attorney General.
    (b) Warrantless Inspections.--The Secretary may stop and inspect, 
without a warrant, any person or means of conveyance moving--
            (1) into the United States to determine whether the person 
        or means of conveyance is carrying any plant, plant product, 
        biological control organism, plant pest, noxious weed, or 
        article subject to this title;
            (2) in interstate commerce, upon probable cause to believe 
        that the person or means of conveyance is carrying any plant, 
        plant product, biological control organism, plant pest, noxious 
        weed, or article subject to this title; and
            (3) in intrastate commerce from or within any State, portion 
        of a State, or premises quarantined as part of a extraordinary

[[Page 114 STAT. 449]]

        emergency declared under section 415 upon probable cause to 
        believe that the person or means of conveyance is carrying any 
        plant, plant product, biological control organism, plant pest, 
        noxious weed, or article regulated under that section or is 
        moving subject to that section.

    (c) Inspections With a Warrant.--
            (1) General authority.--The Secretary may enter, with a 
        warrant, any premises in the United States for the purpose of 
        conducting investigations or making inspections and seizures 
        under this title.
            (2) Application and issuance of a warrant.--Upon proper oath 
        or affirmation showing probable cause to believe that there is 
        on certain premises any plant, plant product, biological control 
        organism, plant pest, noxious weed, article, facility, or means 
        of conveyance regulated under this title, a United States judge, 
        a judge of a court of record in the United States, or a United 
        States magistrate judge may, within the judge's or magistrate's 
        jurisdiction, issue a warrant for the entry upon the premises to 
        conduct any investigation or make any inspection or seizure 
        under this title. The warrant may be applied for and executed by 
        the Secretary or any United States Marshal.

SEC. 422. <<NOTE: 7 USC 7732.>> COLLECTION OF INFORMATION.

    The Secretary may gather and compile information and conduct any 
investigations the Secretary considers necessary for the administration 
and enforcement of this title.

SEC. 423. <<NOTE: 7 USC 7733.>> SUBPOENA AUTHORITY.

    (a) Authority To Issue.--The Secretary shall have power to subpoena 
the attendance and testimony of any witness, and the production of all 
documentary evidence relating to the administration or enforcement of 
this title or any matter under investigation in connection with this 
title.
    (b) Location of Production.--The attendance of any witness and 
production of documentary evidence may be required from any place in the 
United States at any designated place of hearing.
    (c) Enforcement of Subpoena.--In the case of disobedience to a 
subpoena by any person, the Secretary may request the Attorney General 
to invoke the aid of any court of the United States within the 
jurisdiction in which the investigation is conducted, or where the 
person resides, is found, transacts business, is licensed to do 
business, or is incorporated, in requiring the attendance and testimony 
of any witness and the production of documentary evidence. In case of a 
refusal to obey a subpoena issued to any person, a court may order the 
person to appear before the Secretary and give evidence concerning the 
matter in question or to produce documentary evidence. Any failure to 
obey the court's order may be punished by the court as a contempt of the 
court.
    (d) Compensation.--Witnesses summoned by the Secretary shall be paid 
the same fees and mileage that are paid to witnesses in courts of the 
United States, and witnesses whose depositions are taken and the persons 
taking the depositions shall be entitled to the same fees that are paid 
for similar services in the courts of the United States.
    (e) Procedures.--The <<NOTE: Publication.>> Secretary shall publish 
procedures for the issuance of subpoenas under this section. Such 
procedures shall

[[Page 114 STAT. 450]]

include a requirement that subpoenas be reviewed for legal sufficiency 
and signed by the Secretary. If the authority to sign a subpoena is 
delegated, the agency receiving the delegation shall seek review for 
legal sufficiency outside that agency.

    (f ) Scope of Subpoena.--Subpoenas for witnesses to attend court in 
any judicial district or to testify or produce evidence at an 
administrative hearing in any judicial district in any action or 
proceeding arising under this title may run to any other judicial 
district.

SEC. 424. <<NOTE: 7 USC 7734.>> PENALTIES FOR VIOLATION.

    (a) Criminal Penalties.--Any person that knowingly violates this 
title, or that knowingly forges, counterfeits, or, without authority 
from the Secretary, uses, alters, defaces, or destroys any certificate, 
permit, or other document provided for in this title shall be guilty of 
a misdemeanor, and, upon conviction, shall be fined in accordance with 
title 18, United States Code, imprisoned for a period not exceeding 1 
year, or both.
    (b) Civil Penalties.--
            (1) In general.--Any person that violates this title, or 
        that forges, counterfeits, or, without authority from the 
        Secretary, uses, alters, defaces, or destroys any certificate, 
        permit, or other document provided for in this title may, after 
        notice and opportunity for a hearing on the record, be assessed 
        a civil penalty by the Secretary that does not exceed the 
        greater of--
                    (A) $50,000 in the case of any individual (except 
                that the civil penalty may not exceed $1,000 in the case 
                of an initial violation of this title by an individual 
                moving regulated articles not for monetary gain), 
                $250,000 in the case of any other person for each 
                violation, and $500,000 for all violations adjudicated 
                in a single proceeding; or
                    (B) twice the gross gain or gross loss for any 
                violation, forgery, counterfeiting, unauthorized use, 
                defacing, or destruction of a certificate, permit, or 
                other document provided for in this title that results 
                in the person deriving pecuniary gain or causing 
                pecuniary loss to another.
            (2) Factors in determining civil penalty.--In determining 
        the amount of a civil penalty, the Secretary shall take into 
        account the nature, circumstance, extent, and gravity of the 
        violation or violations and the Secretary may consider, with 
        respect to the violator--
                    (A) ability to pay;
                    (B) effect on ability to continue to do business;
                    (C) any history of prior violations;
                    (D) the degree of culpability; and
                    (E) any other factors the Secretary considers 
                appropriate.
            (3) Settlement of civil penalties.--The Secretary may 
        compromise, modify, or remit, with or without conditions, any 
        civil penalty that may be assessed under this subsection.
            (4) Finality of orders.--The order of the Secretary 
        assessing a civil penalty shall be treated as a final order 
        reviewable under chapter 158 of title 28, United States Code. 
        The validity of the Secretary's order may not be reviewed in an 
        action to collect the civil penalty. Any civil penalty not paid 
        in full when due under an order assessing the civil penalty

[[Page 114 STAT. 451]]

        shall thereafter accrue interest until paid at the rate of 
        interest applicable to civil judgments of the courts of the 
        United States.

    (c) Liability for Acts of an Agent.--When construing and enforcing 
this title, the act, omission, or failure of any officer, agent, or 
person acting for or employed by any other person within the scope of 
his or her employment or office, shall be deemed also to be the act, 
omission, or failure of the other person.
    (d) Guidelines for Civil Penalties.--The Secretary shall coordinate 
with the Attorney General to establish guidelines to determine under 
what circumstances the Secretary may issue a civil penalty or suitable 
notice of warning in lieu of prosecution by the Attorney General of a 
violation of this title.

SEC. 425. <<NOTE: 7 USC 7735.>> ENFORCEMENT ACTIONS OF ATTORNEY GENERAL.

    The Attorney General may--
            (1) prosecute, in the name of the United States, all 
        criminal violations of this title that are referred to the 
        Attorney General by the Secretary or are brought to the notice 
        of the Attorney General by any person;
            (2) bring an action to enjoin the violation of or to compel 
        compliance with this title, or to enjoin any interference by any 
        person with the Secretary in carrying out this title, whenever 
        the Secretary has reason to believe that the person has 
        violated, or is about to violate this title, or has interfered, 
        or is about to interfere, with the Secretary; and
            (3) bring an action for the recovery of any unpaid civil 
        penalty, funds under reimbursable agreements, late payment 
        penalty, or interest assessed under this title.

SEC. 426. <<NOTE: 7 USC 7736.>> COURT JURISDICTION.

    (a) In General.--The United States district courts, the District 
Court of Guam, the District Court of the Virgin Islands, the highest 
court of American Samoa, and the United States courts of other 
territories and possessions are vested with jurisdiction in all cases 
arising under this title. Any action arising under this title may be 
brought, and process may be served, in the judicial district where a 
violation or interference occurred or is about to occur, or where the 
person charged with the violation, interference, impending violation, 
impending interference, or failure to pay resides, is found, transacts 
business, is licensed to do business, or is incorporated.
    (b) Exception.--This section does not apply to the imposition of 
civil penalties under section 424(b).

                  Subtitle C--Miscellaneous Provisions

SEC. 431. <<NOTE: 7 USC 7751.>> COOPERATION.

    (a) In General.--The Secretary may cooperate with other Federal 
agencies or entities, States or political subdivisions of States, 
national governments, local governments of other nations, domestic or 
international organizations, domestic or international associations, and 
other persons to carry out this title.
    (b) Responsibility.--The individual or entity cooperating with the 
Secretary under subsection (a) shall be responsible for--
            (1) the authority necessary to conduct the operations or 
        take measures on all land and properties within the foreign

[[Page 114 STAT. 452]]

        country or State, other than those owned or controlled by the 
        United States; and
            (2) other facilities and means as the Secretary determines 
        necessary.

    (c) Transfer of Biological Control Methods.--The Secretary may 
transfer to a State, Federal agency, or other person biological control 
methods using biological control organisms against plant pests or 
noxious weeds.
    (d) Cooperation in Program Administration.--The Secretary may 
cooperate with State authorities or other persons in the administration 
of programs for the improvement of plants, plant products, and 
biological control organisms.
    (e) Phytosanitary Issues.--The Secretary shall ensure that 
phytosanitary issues involving imports and exports are addressed based 
on sound science and consistent with applicable international 
agreements. To accomplish these goals, the Secretary may--
            (1) conduct direct negotiations with plant health officials 
        or other appropriate officials of other countries;
            (2) provide technical assistance, training, and guidance to 
        any country requesting such assistance in the development of 
        agricultural health protection systems and import/export 
        systems; and
            (3) maintain plant health and quarantine expertise in other 
        countries--
                    (A) to facilitate the establishment of phytosanitary 
                systems and the resolution of phytosanitary issues;
                    (B) to assist those countries with agricultural 
                health protection activities; and
                    (C) to provide general liaison on agricultural 
                health issues with the plant health or other appropriate 
                officials of the country.

SEC. 432. <<NOTE: 7 USC 7752.>> BUILDINGS, LAND, PEOPLE, CLAIMS, AND 
            AGREEMENTS.

    (a) In General.--To the extent necessary to carry out this title, 
the Secretary may acquire and maintain all real or personal property for 
special purposes and employ any persons, make grants, and enter into any 
contracts, cooperative agreements, memoranda of understanding, or other 
agreements.
    (b) Tort Claims.--
            (1) In general.--Except as provided in paragraph (2), the 
        Secretary may pay tort claims in the manner authorized in the 
        first paragraph of section 2672 of title 28, United States Code, 
        when the claims arise outside the United States in connection 
        with activities that are authorized under this title.
            (2) Requirements of claim.--A claim may not be allowed under 
        this subsection unless the claim is presented in writing to the 
        Secretary within 2 years after the date on which the claim 
        accrues.

SEC. 433. <<NOTE: 7 USC 7753.>> REIMBURSABLE AGREEMENTS.

    (a) Authority To Enter Into Agreements.--The Secretary may enter 
into reimbursable fee agreements with persons for preclearance of 
plants, plant products, biological control organisms, and articles at 
locations outside the United States for movement into the United States.
    (b) Funds Collected for Preclearance.--Funds collected for 
preclearance shall be credited to accounts which may be established by 
the Secretary for this purpose and shall remain available

[[Page 114 STAT. 453]]

until expended for the preclearance activities without fiscal year 
limitation.
    (c) Payment of Employees.--
            (1) In general.--Notwithstanding any other law, the 
        Secretary may pay employees of the Department of Agriculture 
        performing services relating to imports into and exports from 
        the United States, for all overtime, night, or holiday work 
        performed by them, at rates of pay established by the Secretary.
            (2) Reimbursement of the secretary.--
                    (A) In general.--The Secretary may require persons 
                for whom the services are performed to reimburse the 
                Secretary for any sums of money paid by the Secretary 
                for the services.
                    (B) Use of funds.--All funds collected under this 
                paragraph shall be credited to the account that incurs 
                the costs and shall remain available until expended 
                without fiscal year limitation.

    (d) Late Payment Penalties.--
            (1) Collection.--Upon failure to reimburse the Secretary in 
        accordance with this section, the Secretary may assess a late 
        payment penalty, and the overdue funds shall accrue interest, as 
        required by section 3717 of title 31, United States Code.
            (2) Use of funds.--Any late payment penalty and any accrued 
        interest shall be credited to the account that incurs the costs 
        and shall remain available until expended without fiscal year 
        limitation.

SEC. 434. <<NOTE: 7 USC 7754.>> REGULATIONS AND ORDERS.

    The Secretary may issue such regulations and orders as the Secretary 
considers necessary to carry out this title.

SEC. 435. <<NOTE: 7 USC 7755.>> PROTECTION FOR MAIL HANDLERS.

    This title shall not apply to any employee of the United States in 
the performance of the duties of the employee in handling the mail.

SEC. 436. <<NOTE: 7 USC 7756.>> PREEMPTION.

    (a) Regulation of Foreign Commerce.--No State or political 
subdivision of a State may regulate in foreign commerce any article, 
means of conveyance, plant, biological control organism, plant pest, 
noxious weed, or plant product in order--
            (1) to control a plant pest or noxious weed;
            (2) to eradicate a plant pest or noxious weed; or
            (3) prevent the introduction or dissemination of a 
        biological control organism, plant pest, or noxious weed.

    (b) Regulation of Interstate Commerce.--
            (1) In general.--Except as provided in paragraph (2), no 
        State or political subdivision of a State may regulate the 
        movement in interstate commerce of any article, means of 
        conveyance, plant, biological control organism, plant pest, 
        noxious weed, or plant product in order to control a plant pest 
        or noxious weed, eradicate a plant pest or noxious weed, or 
        prevent the introduction or dissemination of a biological 
        control organism, plant pest, or noxious weed, if the Secretary 
        has issued a regulation or order to prevent the dissemination of 
        the biological control organism, plant pest, or noxious weed 
        within the United States.

[[Page 114 STAT. 454]]

            (2) Exceptions.--
                    (A) Regulations consistent with federal 
                regulations.--A State or a political subdivision of a 
                State may impose prohibitions or restrictions upon the 
                movement in interstate commerce of articles, means of 
                conveyance, plants, biological control organisms, plant 
                pests, noxious weeds, or plant products that are 
                consistent with and do not exceed the regulations or 
                orders issued by the Secretary.
                    (B) Special need.--A State or political subdivision 
                of a State may impose prohibitions or restrictions upon 
                the movement in interstate commerce of articles, means 
                of conveyance, plants, plant products, biological 
                control organisms, plant pests, or noxious weeds that 
                are in addition to the prohibitions or restrictions 
                imposed by the Secretary, if the State or political 
                subdivision of a State demonstrates to the Secretary and 
                the Secretary finds that there is a special need for 
                additional prohibitions or restrictions based on sound 
                scientific data or a thorough risk assessment.

SEC. 437. <<NOTE: 7 USC 7757.>> SEVERABILITY.

    If any provision of this title or application of any provision of 
this title to any person or circumstances is held invalid, the remainder 
of this title and the application of the provision to other persons and 
circumstances shall not be affected by the invalidity.

SEC. 438. <<NOTE: 7 USC 7758.>> REPEAL OF SUPERSEDED LAWS.

    (a) Repeal.--The following provisions of law are repealed:
            (1) The Act of August 20, 1912 (commonly known as the 
        ``Plant Quarantine Act'') (7 U.S.C. 151-164a, 167).
            (2) The Federal Plant Pest Act (7 U.S.C. 150aa et seq. and 7 
        U.S.C. 147a note).
            (3) Subsections (a) through (e) of section 102 of the 
        Department of Agriculture Organic Act of 1944 (7 U.S.C. 147a).
            (4) The Federal Noxious Weed Act of 1974 (7 U.S.C. 2801 et 
        seq.), except the first section and section 15 of that Act (7 
        U.S.C. 2801 note and 7 U.S.C. 2814).
            (5) The Act of January 31, 1942 (commonly known as the 
        ``Mexican Border Act'') (7 U.S.C. 149).
            (6) The Joint Resolution of April 6, 1937 (commonly known as 
        the ``Insect Control Act'') (7 U.S.C. 148 et seq.).
            (7) The Halogeton Glomeratus Act (7 U.S.C. 1651 et seq.).
            (8) The Golden Nematode Act (7 U.S.C. 150 et seq.).
            (9) Section 1773 of the Food Security Act of 1985 (Public 
        Law 99-198; 7 U.S.C. 148f ).

    (b) Emergency Transfer Authority Regarding Plant Pests.--The first 
section of Public Law 97-46 (7 U.S.C. 147b) is amended--
            (1) by striking ``plant pests or''; and
            (2) by striking ``section 102 of the Act of September 21, 
        1944, as amended (7 U.S.C. 147a), and''.

    (c) Effect on Regulations.--Regulations issued under the authority 
of a provision of law repealed by subsection (a) shall remain in effect 
until such time as the Secretary issues a regulation under section 434 
that supersedes the earlier regulation.

[[Page 114 STAT. 455]]

               Subtitle D--Authorization of Appropriations

SEC. 441. <<NOTE: 7 USC 7771.>> AUTHORIZATION OF APPROPRIATIONS.

    There are authorized to be appropriated such amounts as may be 
necessary to carry out this title. Except as specifically authorized by 
law, no part of the money appropriated under this section shall be used 
to pay indemnities for property injured or destroyed by or at the 
direction of the Secretary.

SEC. 442. <<NOTE: 7 USC 7772.>> TRANSFER AUTHORITY.

    (a) Authority To Transfer Certain Funds.--In connection with an 
emergency in which a plant pest or noxious weed threatens any segment of 
the agricultural production of the United States, the Secretary may 
transfer from other appropriations or funds available to the agencies or 
corporations of the Department of Agriculture such amounts as the 
Secretary considers necessary to be available in the emergency for the 
arrest, control, eradication, and prevention of the spread of the plant 
pest or noxious weed and for related expenses.
    (b) Availability.--Any funds transferred under this section shall 
remain available for such purposes without fiscal year limitation.

                       TITLE V--INSPECTION ANIMALS

SEC. 501. <<NOTE: 7 USC 2279e.>> CIVIL PENALTY.

    (a) In General.--Any person that causes harm to, or interferes with, 
an animal used for the purposes of official inspections by the 
Department of Agriculture, may, after notice and opportunity for a 
hearing on the record, be assessed a civil penalty by the Secretary of 
Agriculture not to exceed $10,000.
    (b) Factors in Determining Civil Penalty.--In determining the amount 
of a civil penalty, the Secretary shall take into account the nature, 
circumstance, extent, and gravity of the offense.
    (c) Settlement of Civil Penalties.--The Secretary may compromise, 
modify, or remit, with or without conditions, any civil penalty that may 
be assessed under this section.
    (d) Finality of Orders.--
            (1) In general.--The order of the Secretary assessing a 
        civil penalty shall be treated as a final order reviewable under 
        chapter 158 of title 28, United States Code. The validity of the 
        order of the Secretary may not be reviewed in an action to 
        collect the civil penalty.
            (2) Interest.--Any civil penalty not paid in full when due 
        under an order assessing the civil penalty shall thereafter 
        accrue interest until paid at the rate of interest applicable to 
        civil judgments of the courts of the United States.

SEC. 502. <<NOTE: 7 USC 2279f.>> SUBPOENA AUTHORITY.

    (a) In General.--The Secretary shall have power to subpoena the 
attendance and testimony of any witness, and the production of all 
documentary evidence relating to the enforcement of section 501 or any 
matter under investigation in connection with this title.

[[Page 114 STAT. 456]]

    (b) Location of Production.--The attendance of any witness and the 
production of documentary evidence may be required from any place in the 
United States at any designated place of hearing.
    (c) Enforcement of Subpoena.--In the case of disobedience to a 
subpoena by any person, the Secretary may request the Attorney General 
to invoke the aid of any court of the United States within the 
jurisdiction in which the investigation is conducted, or where the 
person resides, is found, transacts business, is licensed to do 
business, or is incorporated, in requiring the attendance and testimony 
of any witness and the production of documentary evidence. In case of a 
refusal to obey a subpoena issued to any person, a court may order the 
person to appear before the Secretary and give evidence concerning the 
matter in question or to produce documentary evidence. Any failure to 
obey the court's order may be punished by the court as a contempt of the 
court.
    (d) Compensation.--Witnesses summoned by the Secretary shall be paid 
the same fees and mileage that are paid to witnesses in courts of the 
United States, and witnesses whose depositions are taken, and the 
persons taking the depositions shall be entitled to the same fees that 
are paid for similar services in the courts of the United States.
    (e) Procedures.--The <<NOTE: Publication.>> Secretary shall publish 
procedures for the issuance of subpoenas under this section. Such 
procedures shall include a requirement that subpoenas be reviewed for 
legal sufficiency and signed by the Secretary. If the authority to sign 
a subpoena is delegated, the agency receiving the delegation shall seek 
review for legal sufficiency outside that agency.

    (f ) Scope of Subpoena.--Subpoenas for witnesses to attend court in 
any judicial district or testify or produce evidence at an 
administrative hearing in any judicial district in any action or 
proceeding arising under section 501 may run to any other judicial 
district.

    Approved June 20, 2000.

LEGISLATIVE HISTORY--H.R. 2559 (S. 2251):
---------------------------------------------------------------------------

HOUSE REPORTS: Nos. 106-300 and Pt. 2 (Comm. on Agriculture).
SENATE REPORTS: No. 106-247 accompanying S. 2251 (Comm. on Agriculture, 
Nutrition, and Forestry).
CONGRESSIONAL RECORD:
                                                        Vol. 145 (1999):
                                    Sept. 29, considered and passed 
                                        House.
                                                        Vol. 146 (2000):
                                    Mar. 22, 23, considered and passed 
                                        Senate, amended, in lieu of S. 
                                        2251.
                                    May 25, Senate and House agreed to 
                                        conference report.
WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS, Vol. 36 (2000):
            June 20, Presidential statement.

                                  <all>
```