I

104TH CONGRESS

2D SESSION H. R. 2973

To reform and extend Department of Agriculture programs related to agricultural credit, rural development, conservation, trade, research, and promotion of agricultural commodities.

IN THE HOUSE OF REPRESENTATIVES

FEBRUARY 27, 1996

Mr. ROBERTS (for himself, Mr. EMERSON, Mr. GUNDERSON, Mr. ALLARD,

Mr. BARRETT of Nebraska, Mr. EWING, and Mr. SMITH of Michigan) introduced the following bill; which was referred to the Committee on Agriculture, and in addition to the Committees on Ways and Means, and

International Relations, for a period to be subsequently determined by the

Speaker, in each case for consideration of such provisions as fall within

the jurisdiction of the committee concerned

A BILL

To reform and extend Department of Agriculture programs

related to agricultural credit, rural development, conservation, trade, research, and promotion of agricultural

commodities.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,

3 SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

4 (a) SHORT TITLE.—This Act may be cited as the

5 ‘‘Agricultural Regulatory Relief and Trade Act of 1996’’.
2

•HR 2973 IH

1 (b) TABLE OF CONTENTS.—The table of contents of

2 this Act is as follows:

Sec. 1. Short title; table of contents.

TITLE I—AGRICULTURAL CREDIT

Subtitle A—Amendments to the Consolidated Farm and Rural

Development Act

Sec. 101. References.

Sec. 102. Redirection of resources to family farmers.

Sec. 103. Redirection of resources to income-producing activities.

Sec. 104. Improvement of loan portfolio management.

Sec. 105. Assuring prompt repayment of loans.

Sec. 106. Modification of programs for beginning farmers.

Sec. 107. Elimination of target participation rates.

Sec. 108. Miscellaneous and conforming amendments.

Subtitle B—Amendments to the Farm Credit Act of 1971

Sec. 151. References.

Sec. 152. Repeal of requirements relating to review of decisions to deny or reduce the amount of a loan.

Sec. 153. Prohibition against restructuring of restructured loans or loans involved in bankruptcy proceedings.

Sec. 154. Repeal of rules governing effect of restructuring on borrower stock.

Sec. 155. Repeal of rules governing review of restructuring denials.

Sec. 156. Elimination of certain requirements relating to loans placed in

nonaccrual status.

Sec. 157. Limitations on the right of first refusal.

TITLE II—RURAL DEVELOPMENT

Sec. 201. Capitalization grants to States for rural development.

Sec. 202. Elimination of other rural development programs.

Sec. 203. Conforming amendments.

Sec. 204. Savings provision.

Sec. 205. Effective date.

TITLE III—CONSERVATION

Sec. 300. Short title.

Subtitle A—Consolidation of Conservation Financial

Assistance Programs of the Department of Agriculture

Sec. 301. Purpose of subtitle.

Part 1—Agricultural Conservation Assistance Program

Sec. 311. Definitions.

Sec. 312. Provision of technical and financial assistance for eligible practices to

conserve and improve soil, water, and related natural resources.

Sec. 313. Cost-share plans.

Sec. 314. Financial assistance under contract.

Sec. 315. Termination of contracts.
3

•HR 2973 IH

Sec. 316. Authorization of appropriations.

Part 2—Conforming Amendments

Sec. 321. Repeal of Great Plains conservation program.

Sec. 322. Repeal of critical lands resource conservation program in Great

Plains area.

Sec. 323. Repeal of agricultural conservation program.

Sec. 324. Modification of Department involvement in Colorado River basin salinity control program.

Sec. 325. Repeal of rural environmental conservation program.

Sec. 326. Repeal of water quality incentive projects.

Sec. 327. Repeal of tree planting initiative.

Sec. 328. Repeal of integrated farm management program option.

Sec. 329. Repeal of special areas conservation program and reservoir sedimentation program.

Sec. 330. Repeal of small watershed easement purchase authority.

Sec. 331. Repeal of financial assistance programs under Cooperative Forestry

Assistance Act of 1978.

Sec. 332. Repeal of Water Bank Act.

Sec. 333. Effective date of repeals.

Subtitle B—Water Quality Conservation Program for

Livestock Operations

Sec. 341. Purpose of subtitle and definitions.

Sec. 342. Provision of technical and financial assistance for water quality conservation for livestock operations.

Sec. 343. Assistance under contract.

Sec. 344. Priorities in evaluation of contract offers.

Sec. 345. Water quality plans.

Sec. 346. Modification and termination of contracts.

Sec. 347. Use of funds of Commodity Credit Corporation.

Sec. 348. Regulations.

Subtitle C—Highly Erodible Cropland Conservation

Sec. 351. Definitions applicable to highly erodible cropland conservation.

Sec. 352. Development and implementation of conservation plans and conservation systems.

Sec. 353. Expedited procedures for granting variances from conservation plans.

Sec. 354. Good faith exemption.

Sec. 355. Conservation reserve lands.

Sec. 356. Investigation of possible compliance deficiencies.

Sec. 357. Expiration of authority.

Subtitle D—Environmental Conservation Acreage Reserve

Program

Sec. 361. Wetlands reserve program.

Sec. 362. Elimination of consultation requirements with Secretary of the Interior.

Sec. 363. Repeal of environmental easement program.

Sec. 364. Effect of amendments on existing easements.

Sec. 365. Conservation reserve program.

Subtitle E—Wetland Conservation Reform
4

•HR 2973 IH

Sec. 371. Restatement of program ineligibility.

Sec. 372. Delineation of wetlands; exemptions to program ineligibility.

Sec. 373. Repeal of consultation requirement with Secretary of the Interior.

Sec. 374. Application of program ineligibility to affiliated persons.

TITLE IV—AGRICULTURAL TRADE

Subtitle A—Public Law 480 and Related Law

Sec. 401. Food assistance to developing countries.

Sec. 402. Trade and development assistance.

Sec. 403. Agreements regarding eligible countries and private entities.

Sec. 404. Terms and conditions of sales.

Sec. 405. Use of local currency.

Sec. 406. Provision of agricultural commodities.

Sec. 407. Effective use of commodities.

Sec. 408. Monetization.

Sec. 409. General levels of assistance under Public Law 480.

Sec. 410. Use of value added commodities.

Sec. 411. Food aid consultation group.

Sec. 412. Food for development.

Sec. 413. Commodity determinations.

Sec. 414. General provisions.

Sec. 415. Agreements.

Sec. 416. Administrative provisions.

Sec. 417. Expiration date.

Sec. 418. Repeal of sections 409 and 410.

Sec. 419. Use of local currency in title V.

Sec. 420. Title V funding level.

Sec. 421. Food for progress.

Sec. 422. Food security commodity reserve.

Subtitle B—Agricultural Trade Act of 1978

Sec. 431. Agricultural export promotion strategy.

Sec. 432. Export credits.

Sec. 433. Regulations.

Sec. 434. Agricultural embargo protection.

Sec. 435. Foreign Agricultural Service.

Subtitle C—Miscellaneous

Sec. 441. Triggered export enhancement.

Sec. 442. Policy on expansion of international markets.

Sec. 443. Policy on maintenance and development of export markets.

Sec. 444. Policy on unfair trade practices.

Sec. 445. Agricultural aid and trade unions.

Sec. 446. Annual reports by agricultural attaches.

Sec. 447. Orderly liquidation of stocks.

Sec. 448. Regulations.

Sec. 449. Emerging markets.

Sec. 450. Import assistance for CBI beneficiary countries and the Philippines.

Sec. 451. Studies, reports, and other provisions.

Sec. 452. Monitoring compliance with Uruguay Round Agreements.

Sec. 453. Limitation on durum wheat export subsidies.

Sec. 454. Market promotion program.

Sec. 455. Export enhancement program.
5

•HR 2973 IH

Sec. 456. Monitoring compliance with sanitary and phytosanitary measures.

Sec. 457. Agricultural trade program flexibility.

Sec. 458. Sunflower seed oil and cottonseed oil export sales.

Sec. 459. Foreign market development cooperator program.

Subtitle D—Dairy Export Programs

Sec. 461. Authority to assist in establishment and maintenance of export trading company.

Sec. 462. Standby authority to designate entity to provide international market

development and export services.

Sec. 463. Assurance of equitable treatment, fair dealing and protection from

discriminatory practices for U.S. participants in the world market for dairy products.

Sec. 464. Study and report regarding potential impact of Uruguay Round on

prices, income and government purchases.

TITLE V—EXTENSION OF RESEARCH AUTHORITIES

Sec. 501. Extension of national genetic resources program.

Sec. 502. Extension of national agricultural weather information system.

Sec. 503. Extension of research program regarding production, preparation,

processing, handling, and storage of agricultural products.

Sec. 504. Extension of water quality research, education, and coordination.

Sec. 505. Extension of livestock product safety and inspection program.

Sec. 506. Extension of mesquite research program.

Sec. 507. Extension of prickly pear research program.

Sec. 508. Extension of deer tick ecology and related research program.

Sec. 509. Extension of agricultural telecommunications program.

Sec. 510. Extension of national centers for agricultural product quality research.

Sec. 511. Extension of pilot to coordinate food and nutrition education programs.

Sec. 512. Extension of assistive technology program for farmers with disabilities.

Sec. 513. Extension of national rural information center clearinghouse.

Sec. 514. Extension of Indian subsistence farming demonstration grant program.

Sec. 515. Extension of Joint Council on Food and Agricultural Sciences.

Sec. 516. Extension of National Agricultural Research and Extension Users

Advisory Board.

Sec. 517. Extension or program of grants and fellowships for food and agricultural sciences education.

Sec. 518. Extension of grant program for research on the production and marketing of alcohols and industrial hydrocarbons from agricultural commodities and forest products.

Sec. 519. Extension of Food Science and Nutrition Research Center.

Sec. 520. Extension of nutrition education program.

Sec. 521. Extension of Animal Health Science Research Advisory Board.

Sec. 522. Extension of animal health and disease research programs.

Sec. 523. Extension of research on national or regional animal health or disease

problems.

Sec. 524. Extension of resident instruction program at 1890 land-grant colleges.

Sec. 525. Extension of grant program to upgrade agricultural and food sciences

facilities at 1890 land-grant colleges.
6

•HR 2973 IH

Sec. 526. Extension of national research and training centennial centers.

Sec. 527. Extension of miscellaneous research programs.

Sec. 528. Extension of extension education program.

Sec. 529. Extension of research and pilot project for the development of supplemental and alternative crops.

Sec. 530. Extension of aquaculture assistance programs.

Sec. 531. Extension of rangeland research program.

Sec. 532. Extension of dairy goat research program.

Sec. 533. Extension of construction program for Federal agricultural research

facilities.

Sec. 534. Extension of the Competitive, Special, and Facilities Research Grant

Act.

Sec. 535. Extension of the Research Facilities Act.

Sec. 536. Extension of critical agricultural materials research.

Sec. 537. Extension of pseudorabies eradication program.

TITLE VI—ISSUANCE OF ORDERS FOR PROMOTION, RESEARCH, AND INFORMATION ACTIVITIES REGARDING

AGRICULTURAL COMMODITIES

Sec. 601. Short title.

Sec. 602. Findings and purpose.

Sec. 603. Definitions.

Sec. 604. Issuance of orders.

Sec. 605. Required terms in orders.

Sec. 606. Permissive terms in orders.

Sec. 607. Assessments.

Sec. 608. Petition and review of orders.

Sec. 609. Enforcement.

Sec. 610. Investigations and power to subpoena.

Sec. 611. Referenda.

Sec. 612. Suspension or termination.

Sec. 613. Amendments to orders.

Sec. 614. Effect on other laws.

Sec. 615. Regulations.

Sec. 616. Authorization of appropriations.

TITLE VII—MISCELLANEOUS PROVISIONS

Subtitle A—General Conservation Provisions

Sec. 701. Clarification of effect of resource planning on allocation or use of

water.

Sec. 702. Payment of filing fees by United States in connection with water

rights adjudications.

Sec. 703. Provision of technical assistance to State foresters.

Sec. 704. Repeal of State technical committees.

Sec. 705. Repeal of composting research and extension program.

Sec. 706. Repeal of Farms for the Future Act of 1990.

Sec. 707. Administration of environmental programs.

Sec. 708. Private grazing lands conservation assistance.

Subtitle B—Inspection

Sec. 721. Federal and State cooperation under Federal Meat Inspection Act.
7

•HR 2973 IH

Sec. 722. Federal and State cooperation under Poultry Products Inspection

Act.

Sec. 723. Establishment of Safe Meat and Poultry Inspection Panel.

1 TITLE I—AGRICULTURAL

2 CREDIT

3 Subtitle A—Amendments to the

4 Consolidated Farm and Rural

5 Development Act

6 SEC. 101. REFERENCES.

7 Except as otherwise expressly provided, wherever in

8 this subtitle an amendment or repeal is expressed in terms

9 of an amendment to, or repeal of, a section or other provi10 sion, the reference shall be considered to be made to a

11 section or other provision of the Consolidated Farm and

12 Rural Development Act.

13 SEC. 102. REDIRECTION OF RESOURCES TO FAMILY FARM14 ERS.

15 (a) OWNERSHIP LOANS.—

16 (1) TARGETING TO FAMILY FARMERS.—

17 (A) IN GENERAL.—Section 302(a) (7

18 U.S.C. 1922(a)) is amended to read as follows:

19 ‘‘(a)(1) The Secretary may make loans under this

20 subtitle to any eligible applicant for such a loan.

21 ‘‘(2) For purposes of paragraph (1), an individual

22 who has applied for a loan under this subtitle is an eligible

23 applicant if the individual—

24 ‘‘(A) is a citizen of the United States;
8

•HR 2973 IH

1 ‘‘(B) has training or farming experience that

2 the Secretary determines is sufficient to assure rea3 sonable prospects of success in the proposed farming

4 operation;

5 ‘‘(C) is or will become an owner-operator of a

6 not larger than family farm in the United States;

7 and

8 ‘‘(D) is unable to obtain sufficient credit else9 where to finance the needs of the individual relating

10 to the proposed farming operation at reasonable

11 rates and terms, taking into consideration prevailing

12 private and cooperative rates and terms in the com13 munity in or near which the individual resides for

14 loans for similar purposes and periods of time.

15 ‘‘(3) For purposes of paragraph (1), a person (other

16 than an individual) who has applied for a loan under this

17 subtitle is an eligible applicant if—

18 ‘‘(A) the person—

19 ‘‘(i) is controlled by farmers and ranchers;

20 ‘‘(ii) is engaged primarily and directly in

21 farming or ranching in the United States;

22 ‘‘(iii) is or will become an owner-operator

23 of a not larger than family farm; and

24 ‘‘(iv) is unable to obtain sufficient credit

25 elsewhere to finance the needs of the person re-
9

•HR 2973 IH

1 lating to the proposed farming operation at rea2 sonable rates and terms, taking into consider3 ation prevailing private and cooperative rates

4 and terms in the community in or near which

5 the person is located for loans for similar pur6 poses and periods of time; and

7 ‘‘(B) each individual who has greater than a 15

8 percent ownership interest in the person meets the

9 requirements of paragraph (2).

10 ‘‘(4) As used in this subsection, the term ‘person’

11 means an individual, a corporation, a partnership, a joint

12 venture, or any combination thereof.’’.

13 (B) CONFORMING AMENDMENTS.—

14 (i) Section 304(b) (7 U.S.C. 1924(b))

15 is amended by striking ‘‘clauses (2) and

16 (3) of section 302’’ and inserting ‘‘sub17 paragraphs (B) and (C) of section

18 302(a)(2)’’.

19 (ii) Section 310D(a) (7 U.S.C.

20 1934(a)) is amended by striking ‘‘para21 graphs (2) through (4) of section 302’’ and

22 inserting ‘‘subparagraphs (B), (C), and

23 (D) of section 302(a)(2)’’.
10

•HR 2973 IH

1 (iii) Section 359(c)(2) (7 U.S.C.

2 2006a(c)(2)) is amended by striking

3 ‘‘302(a)(2)’’ and inserting ‘‘302(a)(2)(B)’’.

4 (2) ELIMINATION OF LOANS FOR REC5 REATIONAL USES AND FACILITIES.—

6 (A) IN GENERAL.—Section 303(a) (7

7 U.S.C. 1923(a)) is amended by striking clause

8 (2) and redesignating clauses (3), (4), and (5)

9 as clauses (2), (3), and (4), respectively.

10 (B) CONFORMING AMENDMENTS.—Section

11 307(a)(6)(B) (7 U.S.C. 1927(a)(6)(B)) is

12 amended in each of clauses (i) and (vii) by

13 striking ‘‘clauses (2) and (3) of section 303(a)’’

14 and inserting ‘‘section 303(a)(2)’’.

15 (3) REFINANCING LIMITED TO LOANS RELATED

16 TO FARM OPERATIONS.—Section 303(a)(3) (7

17 U.S.C. 1923(a)(3)), as so redesignated by paragraph

18 (2)(A) of this subsection, is amended by inserting

19 ‘‘with respect to farming, ranching, or aquaculture

20 operations if such refinancing enhances significantly

21 the likelihood of repayment of such indebtedness’’

22 before the comma.

23 (b) OPERATING LOANS.—

24 (1) TARGETING TO FAMILY FARMERS.—
11

•HR 2973 IH

1 (A) IN GENERAL.—Section 311(a) (7

2 U.S.C. 1941(a)) is amended to read as follows:

3 ‘‘(a)(1) The Secretary may make loans under this

4 subtitle to any eligible applicant for such a loan.

5 ‘‘(2) For purposes of paragraph (1), an individual

6 who has applied for a loan under this subtitle is an eligible

7 applicant if the individual—

8 ‘‘(A) is a citizen of the United States;

9 ‘‘(B) has training or farming experience that

10 the Secretary determines is sufficient to assure rea11 sonable prospects of success in the proposed farming

12 operation;

13 ‘‘(C) is or will become an operator of a not

14 larger than family farm in the United States; and

15 ‘‘(D) is unable to obtain sufficient credit else16 where to finance the needs of the individual relating

17 to the farming operation at reasonable rates and

18 terms, taking into consideration prevailing private

19 and cooperative rates and terms in the community

20 in or near which the individual resides for loans for

21 similar purposes and periods of time.

22 ‘‘(3) For purposes of paragraph (1), a person (other

23 than an individual) who has applied for a loan under this

24 subtitle is an eligible applicant if—

25 ‘‘(A) the person—
12

•HR 2973 IH

1 ‘‘(i) is controlled by farmers and ranchers;

2 ‘‘(ii) is engaged primarily and directly in

3 farming or ranching in the United States;

4 ‘‘(iii) is or will become an operator of a not

5 larger than family farm; and

6 ‘‘(iv) is unable to obtain sufficient credit

7 elsewhere to finance the needs of the person re8 lating to the proposed farming operation at rea9 sonable rates and terms, taking into consider10 ation prevailing private and cooperative rates

11 and terms in the community in or near which

12 the person is located for loans for similar pur13 poses and periods of time; and

14 ‘‘(B) each individual who has greater than a 15

15 percent ownership interest in the person meets the

16 requirements of paragraph (2).

17 ‘‘(4) As used in this subsection, the term ‘person’

18 means an individual, a corporation, a partnership, a joint

19 venture, or any combination thereof.’’.

20 (B) CONFORMING AMENDMENTS.—

21 (i) Section 312(a)(5) (7 U.S.C.

22 1924(a)(5)) is amended by striking ‘‘sec23 tion 311 (2) and (3)’’ and inserting ‘‘sub24 paragraphs (B) and (C) of section

25 311(a)(2)’’.
13

•HR 2973 IH

1 (ii) Section 312(b) (7 U.S.C. 1924(b))

2 is amended by striking ‘‘clauses (2) and

3 (3) of section 311(a)’’ and inserting ‘‘sub4 paragraphs (B) and (C) of section

5 311(a)(2)’’.

6 (iii) Section 359(c)(2) (7 U.S.C.

7 2006a(c)(2)) is amended by striking

8 ‘‘311(a)(2)’’ and inserting ‘‘311(a)(2)(B)’’.

9 (2) REFINANCING LIMITED TO LOANS RELATED

10 TO FARM OPERATIONS.—Section 312(a)(7) (7

11 U.S.C. 1942(a)(7)) is amended by inserting ‘‘with

12 respect to farming, ranching, or aquaculture oper13 ations if such refinancing enhances significantly the

14 likelihood of repayment of such indebtedness’’ before

15 the comma.

16 (3) ELIMINATION OF LOANS FOR OSHA COMPLI17 ANCE.—Section 312(a) (7 U.S.C. 1942(a)) is

18 amended by striking clause (10) and redesignating

19 clauses (11), (12), and (13) as clauses (10), (11),

20 and (12), respectively.

21 (c) EMERGENCY LOANS.—

22 (1) TARGETING TO FAMILY FARMERS.—Section

23 321(a) (7 U.S.C. 1961(a)) is amended to read as

24 follows:
14

•HR 2973 IH

1 ‘‘(a)(1) The Secretary shall make loans under this

2 subtitle to any eligible applicant for such a loan.

3 ‘‘(2) For purposes of paragraph (1), an individual

4 who has applied for a loan under this subtitle is an eligible

5 applicant if—

6 ‘‘(A) the individual—

7 ‘‘(i) is a citizen of the United States;

8 ‘‘(ii) has training or farming experience

9 that the Secretary determines is sufficient to

10 assure reasonable prospects of success in the

11 proposed farming operation;

12 ‘‘(iii) is or will become an operator of a not

13 larger than family farm in the United States;

14 and

15 ‘‘(iv) is unable to obtain sufficient credit

16 elsewhere to finance the needs of the individual

17 relating to the proposed farming operation at

18 reasonable rates and terms, taking into consid19 eration prevailing private and cooperative rates

20 and terms in the community in or near which

21 the individual resides for loans for similar pur22 poses and periods of time; and

23 ‘‘(B) the Secretary finds that the farming,

24 ranching, or aquaculture operations of the individual

25 have been substantially affected by—
15

•HR 2973 IH

1 ‘‘(i) a natural disaster in the United

2 States; or

3 ‘‘(ii) a major disaster or emergency des4 ignated by the President under the Disaster Re5 lief and Emergency Assistance Act.

6 ‘‘(3) For purposes of paragraph (1), a person (other

7 than an individual) who has applied for a loan under this

8 subtitle is an eligible applicant if—

9 ‘‘(A) the person—

10 ‘‘(i) is controlled by farmers or ranchers;

11 ‘‘(ii) is primarily engaged in farming,

12 ranching, or aquaculture in the United States;

13 ‘‘(iii) is or will become an operator of a not

14 larger than family farm in the United States;

15 and

16 ‘‘(iv) is unable to obtain sufficient credit

17 elsewhere to finance the needs of the person re18 lating to the proposed farming operation at rea19 sonable rates and terms, taking into consider20 ation prevailing private and cooperative rates

21 and terms in the community in or near which

22 the person is located for loans for similar pur23 poses and periods of time;
16

•HR 2973 IH

1 ‘‘(B) each individual who has greater than a 15

2 percent ownership interest in the person meets the

3 requirements of paragraph (2)(A); and

4 ‘‘(C) the Secretary finds that the farming,

5 ranching, or aquaculture operations of the person

6 have been substantially affected by—

7 ‘‘(i) a natural disaster in the United

8 States; or

9 ‘‘(ii) a major disaster or emergency des10 ignated by the President under the Disaster Re11 lief and Emergency Assistance Act.

12 ‘‘(4)(A) The Secretary shall accept applications from,

13 and make loans pursuant to this subtitle to, applicants

14 otherwise eligible for such a loan, that conduct farming,

15 ranching, or aquaculture operations in any county contig16 uous to a county where the Secretary has found that farm17 ing, ranching, or aquaculture operations have been sub18 stantially affected by—

19 ‘‘(i) a natural disaster in the United States; or

20 ‘‘(ii) a major disaster or emergency designated

21 by the President under the Disaster Relief and

22 Emergency Assistance Act.

23 ‘‘(B) The Secretary shall accept applications for as24 sistance under this subtitle from applicants affected by a
17

•HR 2973 IH

1 natural disaster at any time during the 8-month period

2 beginning on—

3 ‘‘(i) the date on which the Secretary determines

4 that farming, ranching, or aquaculture operations

5 have been substantially affected by the natural dis6 aster; or

7 ‘‘(ii) the date on which the President makes the

8 major disaster or emergency designation with re9 spect to the natural disaster.

10 ‘‘(5) The authority provided by this subsection shall

11 be effective only to the extent or in such amounts as are

12 provided in advance in appropriations Acts.

13 ‘‘(6) As used in this subsection, the term ‘person’

14 means an individual, a corporation, a partnership, a joint

15 venture, or any combination thereof.’’.

16 (2) CONFORMING AMENDMENT.—Section 329

17 (7 U.S.C. 1970) is amended by striking ‘‘a single

18 enterprise which constitutes a basic part of’’.

19 SEC. 103. REDIRECTION OF RESOURCES TO INCOME-PRO20 DUCING ACTIVITIES.

21 (a) ELIMINATION OF OWNERSHIP LOANS FOR THE

22 ACQUISITION, INSTALLATION, OR MODIFICATION OF

23 QUALIFIED NON-FOSSIL ENERGY SYSTEMS.—

24 (1) IN GENERAL.—Section 303 (7 U.S.C. 1923)

25 is amended—
18

•HR 2973 IH

1 (A) by striking ‘‘(a)’’; and

2 (B) by striking subsection (b).

3 (2) CONFORMING AMENDMENTS.—Section

4 307(a)(6)(B) (7 U.S.C. 1927(a)(6)(B)), as amended

5 by section 102(a)(2)(B) of this Act, is amended in

6 each of clauses (i) and (vii) by striking ‘‘section

7 303(a)(2)’’ and inserting ‘‘section 303(2)’’.

8 (b) ELIMINATING OF OWNERSHIP LOANS FOR THE

9 CONSTRUCTION OF CONSERVATION STRUCTURES OR

10 NON-INCOME-PRODUCING CONSERVATION PRACTICES.—

11 Section 304 (7 U.S.C. 1924) is amended—

12 (1) by striking subsection (a) and inserting:

13 ‘‘(a)(1) Loans may be made to farm owners or ten14 ants who are eligible borrowers under this subtitle for—

15 ‘‘(A) the establishment of forest cover for sus16 tained yield timber management;

17 ‘‘(B) the establishment or improvement of per18 manent pasture; or

19 ‘‘(C) the construction or improvement of envi20 ronmental structures or systems required by Federal

21 or State statute.

22 ‘‘(2) The Secretary shall not make a loan under this

23 section that exceeds the lesser of—

24 ‘‘(A) the value of the farm or other security for

25 such loan; or
19

•HR 2973 IH

1 ‘‘(B) $50,000.’’; and

2 (2) by striking subsection (c).

3 (c) ELIMINATION OF OPERATING LOANS FOR THE

4 DEVELOPMENT AND CONSTRUCTION OF SOLAR ENERGY

5 SYSTEMS.—Section 312(a) (7 U.S.C. 1942(a)), as amend6 ed by section 102(b)(3) of this Act, is amended—

7 (1) by striking clause (10) and redesignating

8 clauses (11) and (12) as clauses (10) and (11), re9 spectively; and

10 (2) by striking the 2nd sentence.

11 (d) ELIMINATION OF AUTHORITY TO ACQUIRE EASE12 MENTS FOR CONSERVATION, RECREATIONAL, OR WILD13 LIFE PURPOSES.—Section 349 (7 U.S.C. 1997) is re14 pealed.

15 (e) ELIMINATION OF AUTHORITY TO TRANSFER

16 CERTAIN INVENTORY LANDS.—Section 354 (7 U.S.C.

17 2002) is repealed.

18 (f) CONFORMING AMENDMENTS.—Section 335 (7

19 U.S.C. 1985) is amended—

20 (1) in subsection (c)(1)—

21 (A) by striking ‘‘, other than easements ac22 quired under section 349’’; and

23 (B) by striking the last sentence and in24 serting ‘‘Notwithstanding the preceding sen25 tence, the Secretary may sell an easement, re-
20

•HR 2973 IH

1 striction, development rights, or the equivalent

2 thereof, to a unit of local or State government

3 or a private nonprofit organization for con4 servation purposes at its fair market value.’’;

5 (2) in subsection (e)(7), by striking ‘‘sale or’’;

6 and

7 (3) by striking subsection (g).

8 SEC. 104. IMPROVEMENT OF LOAN PORTFOLIO MANAGE9 MENT.

10 (a) EXPANSION OF AUTHORITY TO REQUIRE ADDI11 TIONAL COLLATERAL TO SECURE A FARMER PROGRAM

12 LOAN.—Section 307(e)(1) (7 U.S.C. 1927(e)(1)) is

13 amended by striking ‘‘, if the borrower is current in the

14 payment of principal and interest on the loan’’ and insert15 ing ‘‘unless the fair market value of the collateral securing

16 the loan is less than 80 percent of the total of the principal

17 and any unpaid accrued interest on the loan’’.

18 (b) LINKING OF EMERGENCY LOANS FOR CROP OR

19 LIVESTOCK CHANGES TO NATURAL DISASTERS.—Section

20 323 (7 U.S.C. 1963) is amended by inserting ‘‘which are

21 necessitated by a natural disaster, major disaster, or

22 emergency and which are’’ after ‘‘livestock changes’’.

23 (c) ESTABLISHMENT OF DATE CERTAIN FOR EMER24 GENCY LOAN ASSET VALUATION.—Section 324(d) (7

25 U.S.C. 1962(d)) is amended in the last sentence by strik-
21

•HR 2973 IH

1 ing all that follows ‘‘shall’’ and inserting ‘‘establish the

2 value of the assets as of the day before the occurrence

3 of the natural disaster, major disaster, or emergency

4 which gave rise to the request for assistance under this

5 subtitle or under the Disaster Relief and Emergency As6 sistance Act.’’.

7 (d) CREATION OF MEASURABLE STANDARD FOR DE8 FERRAL OF LOAN PRINCIPAL AND FOREGOING FORE9 CLOSURE.—Section 331A (7 U.S.C. 1981a) is amended

10 to read as follows:

11 ‘‘SEC. 331A. ADDITIONAL AUTHORITY TO DEFER PRINCIPAL

12 PAYMENTS AND FOREGO FORECLOSURE.

13 ‘‘In addition to any other authority that the Secretary

14 may have to defer principal and forego foreclosure, the

15 Secretary may, at the request of the borrower, permit the

16 deferral of principal only on any outstanding loan made,

17 insured, or held by the Secretary under this title or under

18 any other law administered by the Consolidated Farm

19 Services Agency, and may forego foreclosure on any such

20 loan for such period as the Secretary deems necessary,

21 upon a showing by the borrower that—

22 ‘‘(1) due to circumstances beyond the borrow23 er’s control that could not have been anticipated by

24 the borrower, the borrower is temporarily unable to

25 continue making payments of such principal when
22

•HR 2973 IH

1 due without using funds needed to provide for the

2 basic family needs of the borrower and the imme3 diate family of the borrower; and

4 ‘‘(2) the borrower has the ability to continue

5 making a portion of the interest payments on such

6 loan when due throughout the anticipated deferral

7 period.’’.

8 (e) SIMPLIFICATION OF NOTICE TO BE PROVIDED TO

9 DELINQUENT BORROWERS.—Section 331D (7 U.S.C.

10 1981d) is amended—

11 (1) in subsection (a), by striking ‘‘180 days de12 linquent’’ and inserting ‘‘30 days past due’’; and

13 (2) by striking subsections (b), (c), (d), and (e)

14 and inserting the following:

15 ‘‘(b) CONTENTS.—The notice required under sub16 section (a) shall inform the borrower of—

17 ‘‘(1) appeal rights;

18 ‘‘(2) available restructuring options under this

19 title; and

20 ‘‘(3) the consequences of continued delin21 quency.’’.

22 (f) PROVIDING AN ANNUAL REVIEW OF THE CREDIT

23 HISTORY, BUSINESS OPERATION AND CONTINUED ELIGI24 BILITY OF A BORROWER.—
23

•HR 2973 IH

1 (1) IN GENERAL.—Section 333 (7 U.S.C. 1983)

2 is amended by redesignating paragraphs (2), (3),

3 and (4) as paragraphs (3), (4), and (5), respectively,

4 and by inserting after paragraph (1) the following:

5 ‘‘(2) the county or area committee, as appro6 priate, under section 8(b) of the Soil Conservation

7 and Domestic Allotment Act (16 U.S.C. 590h(b)) to

8 certify in writing that it has performed an annual

9 review of the credit history and business operation

10 of a borrower (other than a borrower under section

11 306, 310B, or 314), and its opinion as to the contin12 ued eligibility of that borrower for such a loan;’’.

13 (2) CONFORMING AMENDMENT.—Section

14 310B(a) (7 U.S.C. 1932(a)) is amended in the 3rd

15 sentence by striking ‘‘(3)’’ and inserting ‘‘(4)’’.

16 (g) ELIMINATION OF THE SALES RESTRICTIONS ON

17 INVENTORY PROPERTY.—

18 (1) IN GENERAL.—Section 335 (7 U.S.C.

19 1985), as amended by sections 103(f)(2) and

20 108(f)(33) of this Act, is amended—

21 (A) in subsection (b), by striking ‘‘Except

22 as provided in subsection (e), real’’ and insert23 ing ‘‘Real’’;

24 (B) in subsection (c)—
24

•HR 2973 IH

1 (i) by striking ‘‘(1) Except as pro2 vided in subsection (e), the’’ and inserting

3 ‘‘The’’;

4 (ii) by striking the 2nd sentence; and

5 (iii) by striking paragraph (2); and

6 (C) by striking subsections (e) and (f).

7 (2) CONFORMING AMENDMENTS.—

8 (A) Section 602(5) of the Agricultural Act

9 of 1949 (7 U.S.C. 1471(5)) is amended by in10 serting ‘‘(as in effect before the date of the en11 actment of the Agricultural Regulatory Relief

12 and Trade Act of 1996)’’ before the last close

13 parenthesis.

14 (B) Section 343(b) (7 U.S.C. 1991(b)) is

15 amended by striking ‘‘335 (e) and (f),’’.

16 (h) ELIMINATION OF DEBT RESTRUCTURING AND

17 LOAN SERVICING.—

18 (1) GENERAL PROVISIONS.—Section 353 (7

19 U.S.C. 2001) is repealed.

20 (2) PROVISIONS APPLICABLE TO COMMUNITY

21 FACILITY LOANS.—Section 353A (7 U.S.C. 2001a)

22 is repealed.

23 (3) CONFORMING AMENDMENTS.—

24 (A) Section 343(b) (7 U.S.C. 1991(b)) is

25 amended by striking ‘‘353,’’.
25

•HR 2973 IH

1 (B) Section 357(b) (7 U.S.C. 2005(b)) is

2 amended by striking paragraph (3).

3 (i) SHORT FORM CERTIFICATION OF PROGRAM COM4 PLIANCE.—Subtitle D (7 U.S.C. 1981–2008f) is amended

5 by adding at the end the following:

6 ‘‘SEC. 372. SHORT FORM CERTIFICATION OF FARM PRO7 GRAM BORROWER COMPLIANCE.

8 ‘‘The Secretary shall develop and utilize a consoli9 dated short form for farm program borrowers to use in

10 certifying compliance with any and all applicable statutes

11 and regulations which serve as eligibility prerequisites for

12 loans made under this title.’’.

13 (j) EFFECT OF PRIOR DEFAULT, DEFERRAL, DEBT

14 RESTRUCTURING, OR LOAN SERVICING ON ELIGIBILITY

15 FOR LOANS.—Subtitle D (7 U.S.C. 1981–2008f), as

16 amended by subsection (i) of this section, is amended by

17 adding at the end the following:

18 ‘‘SEC. 373. EFFECT OF PRIOR DEFAULT, DEFERRAL, DEBT

19 RESTRUCTURING, OR LOAN SERVICING ON

20 ELIGIBILITY FOR LOANS.

21 ‘‘Notwithstanding any other section of this title, the

22 Secretary shall not make any loan under this title to an

23 applicant if the applicant (or, in the case of a legal entity

24 which is an applicant, an individual who has greater than

25 a 15 percent ownership interest in the applicant) has de-
26

•HR 2973 IH

1 faulted on a loan made or insured under this title, had

2 the principal or interest on a loan made or insured under

3 this title deferred under section 331A, or had a loan made

4 or insured under this title restructured or serviced under

5 section 353, unless the default, deferral, restructuring, or

6 servicing resulted from circumstances that were beyond

7 the control of the applicant or individual, and that could

8 not have been reasonably anticipated by the applicant or

9 individual.’’.

10 SEC. 105. ASSURING PROMPT REPAYMENT OF LOANS.

11 (a) NARROWING OF USE OF NONSUPERVISED BANK

12 ACCOUNTS.—Section 312(e) (7 U.S.C. 1942(e)) is amend13 ed to read as follows:

14 ‘‘(e)(1) Notwithstanding any other provision of this

15 title, the Secretary shall reserve a portion of any loan

16 made under this subtitle to be placed in a nonsupervised

17 bank account which may be used at the discretion of the

18 borrower for the basic family needs of the borrower and

19 the immediate family of the borrower.

20 ‘‘(2) The size of any such reserve shall be limited to

21 the least of—

22 ‘‘(A) 10 percent of the loan;

23 ‘‘(B) $5,000; or
27

•HR 2973 IH

1 ‘‘(C) the amount needed to provide for the basic

2 family needs of the borrower and the borrower’s im3 mediate family for 3 calendar months.’’.

4 (b) REDUCTION OF THE LIMIT ON EMERGENCY

5 LOANS.—Section 324(a) (7 U.S.C. 1964(a)) is amended

6 by striking ‘‘$500,000’’ and inserting ‘‘$300,000’’.

7 (c) NARROWING OF AUTHORITY TO WAIVE APPLICA8 TION OF THE CREDIT ELSEWHERE TEST.—Section

9 322(b) (7 U.S.C. 1962(b)) is amended in the 2nd proviso

10 by striking ‘‘$300,000’’ and inserting ‘‘$10,000’’.

11 SEC. 106. MODIFICATION OF PROGRAMS FOR BEGINNING

12 FARMERS.

13 (a) ESTABLISHMENT OF LOAN GUARANTEE PRO14 GRAM.—Section 309(h)(1) (7 U.S.C. 1929(a)(1)) is

15 amended by adding at the end the following: ‘‘In the case

16 of a loan made to a beginning farmer (as defined by the

17 Secretary in regulations), the guarantee shall be for the

18 payment of 98 percent of loan principal and interest.’’.

19 (b) ENHANCEMENT OF INTEREST RATE BUYDOWN

20 PROGRAM.—Section 351(c) (7 U.S.C. 1999(c)) is amend21 ed by inserting ‘‘(or 6 percent, in the case of a loan made

22 to a beginning farmer, as defined by the Secretary)’’ be23 fore the period.

24 (c) ELIMINATION OF DOWN PAYMENT LOAN PRO25 GRAM.—Section 310E (7 U.S.C. 1935) is repealed.
28

•HR 2973 IH

1 (d) ELIMINATION OF LIMITATIONS ON THE AVAIL2 ABILITY OF FARM OWNERSHIP LOANS AND LOAN GUAR3 ANTEES.—Section 310F (7 U.S.C. 1936) is repealed.

4 (e) SIMPLIFICATION OF SPECIAL ASSISTANCE PRO5 GRAM.—Section 318 (7 U.S.C. 1948) is amended to read

6 as follows:

7 ‘‘SEC. 318. SPECIAL ASSISTANCE TO CERTAIN QUALIFIED

8 BEGINNING FARMERS AND RANCHERS.

9 ‘‘(a) IN GENERAL.—The Secretary shall provide spe10 cial assistance in accordance with this section to enable

11 certain qualified beginning farmers or ranchers to conduct

12 viable farming or ranching operations.

13 ‘‘(b) APPLICATION.—A qualified beginning farmer or

14 rancher may apply for special assistance under this section

15 by submitting to the Secretary an application which con16 tains—

17 ‘‘(1) a plan for special assistance which de18 scribes how assistance provided under this section

19 will be used in conducting a farming or ranching op20 eration; and

21 ‘‘(2) such other information as may be required

22 by the Secretary.

23 ‘‘(c) DETERMINATIONS BY THE COUNTY COMMIT24 TEE; APPROVAL OF PLAN.—The county committee shall

25 approve a plan for special assistance submitted by an ap-
29

•HR 2973 IH

1 plicant pursuant to subsection (b) if the county committee

2 determines that—

3 ‘‘(1) the applicant has not operated a farm or

4 ranch, or has operated a farm or ranch for not more

5 than 5 years;

6 ‘‘(2) the applicant owns, leases, or has a com7 mitment to have leased to the applicant the site or

8 sites of the operation; and

9 ‘‘(3) there is, or will be, available to the appli10 cant equipment sufficient to conduct the operation

11 in accordance with the plan.

12 ‘‘(d) DETERMINATION BY THE SECRETARY; AP13 PROVAL OF APPLICATION FOR ASSISTANCE.—Except as

14 provided in subsection (f)(2), the Secretary shall approve

15 an application submitted pursuant to subsection (b) for

16 an operation described in a plan approved by a county

17 committee under this section if the Secretary determines

18 that during the commitment period established in accord19 ance with subsection (e)(1), the operation will be finan20 cially viable, as determined by the Secretary.

21 ‘‘(e) PROVISION OF ASSISTANCE.—

22 ‘‘(1) DETERMINATION OF COMMITMENT PE23 RIOD.—

24 ‘‘(A) INITIAL DETERMINATION.—In ap25 proving an application under subsection (d), the
30

•HR 2973 IH

1 Secretary shall, subject to subparagraph (C),

2 determine the period during which assistance

3 under this section is to be provided for the op4 eration described in the application (referred to

5 in this subsection as the ‘commitment period’).

6 ‘‘(B) AUTHORITY TO EXTEND PERIOD.—At

7 any time, the Secretary may, subject to sub8 paragraph (C) of this paragraph and sub9 sections (f) and (g), extend or reduce the dura10 tion of the commitment period.

11 ‘‘(C) LIMITATIONS.—The duration of any

12 commitment period (including any extension of

13 the period) shall not exceed 10 years and shall

14 be consistent with section 319.

15 ‘‘(2) OPERATING LOANS; LOAN GUARANTEES.—

16 To the extent that an applicant whose application is

17 approved under subsection (d) is unable to obtain

18 sufficient credit from commercial or cooperative

19 lenders to finance the operation described in the ap20 plication at reasonable rates and terms, the Sec21 retary shall, subject to the availability of funds, sub22 ject to subsection (f), and consistent with sections

23 360 and 362, make a conditional commitment to the

24 applicant for each year of the commitment period

25 to provide to any commercial or cooperative lender
31

•HR 2973 IH

1 who makes a loan to the applicant that is within

2 the credit needs of the operation (as specified in the

3 plan contained in the application) a guarantee under

4 section 309(h), which, for purposes of this section,

5 shall be of an amount equal to the lesser of—

6 ‘‘(A) the minimum total amount of loan

7 principal and interest necessary to induce such

8 a lender to make such a loan to the applicant;

9 or

10 ‘‘(B) 90 percent of the total amount of

11 loan principal and interest.

12 ‘‘(3) LOANS OR GUARANTEES FOR NEW OR IM13 PROVED EQUIPMENT.—The Secretary shall make a

14 commitment to any applicant whose application is

15 approved under subsection (d) of this section to pro16 vide the applicant with loan guarantees under sec17 tion 309(h) to finance the acquisition, improvement,

18 or repair of equipment needed in the operation de19 scribed in the application if the plan contained in

20 the application provides for the commitment, to the

21 extent that the applicant is unable to obtain suffi22 cient credit from commercial or cooperative lenders

23 for such purposes at reasonable rates and terms.

24 ‘‘(f) EFFECTS OF AVOIDABLE FAILURE TO ACHIEVE

25 GOALS.—
32

•HR 2973 IH

1 ‘‘(1) REVOCATION OF COMMITMENTS.—The

2 Secretary shall revoke any commitment for assist3 ance made to an applicant under this section if the

4 operation of the applicant fails, for 2 consecutive

5 years, to meet the goals specified in the plan, unless

6 the failure has not materially reduced the likelihood

7 of the operation becoming financially viable and is

8 due to circumstances beyond the control of the appli9 cant.

10 ‘‘(2) PERMANENT INELIGIBILITY FOR ASSIST11 ANCE.—An applicant with respect to whom a revoca12 tion is made under paragraph (1) shall not be eligi13 ble for assistance under this section.’’.

14 (f) ELIMINATION OF DEMONSTRATION PROJECT.—

15 Section 351 (7 U.S.C. 1999), as amended by section

16 108(f)(42) of this Act, is amended by striking subsection

17 (h).

18 (g) CONFORMING AMENDMENTS.—

19 (1) Section 305 (7 U.S.C. 1925) is amended by

20 striking ‘‘310D, and 310E’’ and inserting ‘‘or

21 310D’’.

22 (2) Section 309 (7 U.S.C. 1929) is amended by

23 striking subsections (h)(3) and (i).

24 (3) Section 343(b) (7 U.S.C. 1991(b)) is

25 amended by striking ‘‘351(h),’’.
33

•HR 2973 IH

1 (4) Section 346(b) (7 U.S.C. 1994(b)) is

2 amended—

3 (A) in paragraph (3), by striking subpara4 graphs (E) and (F) and redesignating subpara5 graph (G) as subparagraph (E); and

6 (B) by striking paragraphs (5) and (6).

7 SEC. 107. ELIMINATION OF TARGET PARTICIPATION RATES.

8 (a) REPEAL.—Section 355 (7 U.S.C. 2003) is re9 pealed.

10 (b) CONFORMING AMENDMENTS.—

11 (1) Section 346(b)(3)(D) (7 U.S.C.

12 1994(b)(3)(D)) is amended by striking ‘‘To the ex13 tent that it is not inconsistent with an exercise of

14 authority under section 355, in’’ and inserting ‘‘In’’.

15 (2) Section 2501(c)(2)(D) of the Food, Agri16 culture, Conservation, and Trade Act of 1990 (7

17 U.S.C. 2279(c)(2)(D)) is amended by striking ‘‘com18 pared to the target participation rates established

19 pursuant to sections 355(a)(1) and 355(c) of the

20 Consolidated Farm and Rural Development Act (7

21 U.S.C. 2003(a)(1)),’’.

22 (3) Section 8(b)(5)(B)(iv) of the Soil Conserva23 tion and Domestic Allotment Act (16 U.S.C.

24 590h(b)(5)(B)(iv)) is amended by striking ‘‘groups’’

25 and all that follows and inserting ‘‘groups. For pur-
34

•HR 2973 IH

1 poses of the preceding sentence, the term ‘socially

2 disadvantaged groups’ means groups whose members

3 have been subjected to racial, ethnic, or gender prej4 udice because of their identity as members of a

5 group without regard to their individual qualities.’’.

6 SEC. 108. MISCELLANEOUS AND CONFORMING AMEND7 MENTS.

8 (a) CLARIFICATION OF WRITTEN STATEMENT RE9 QUIRED OF BORROWERS.—Section 333(1) (7 U.S.C.

10 1983(1)) is amended by striking ‘‘a written statement

11 showing the applicant’s net worth’’ and inserting ‘‘an ap12 propriate written financial statement’’.

13 (b) EXTENSION OF VETERANS PREFERENCE TO

14 VETERANS OF THE GULF WAR.—Section 333(5) (7

15 U.S.C. 1983(5)), as so redesignated by section 104(f)(1)

16 of this Act, is amended by striking ‘‘or the Vietnam era’’

17 and inserting ‘‘, during the Vietnam era, or during the

18 liberation of Kuwait under Project Desert Shield or

19 Project Desert Storm,’’.

20 (c) VERIFICATION OF THE CREDIT ELSEWHERE

21 TEST.—Section 333A(e)(4) (7 U.S.C. 1983a(e)(4)) is

22 amended by striking ‘‘With the approval of the borrower,

23 the’’ and inserting ‘‘The’’.
35

•HR 2973 IH

1 (d) ELIMINATION OF REQUIREMENT TO TESTIFY

2 AND REPORT ON BUDGET REQUEST.—Section 345 (7

3 U.S.C. 1993) is repealed.

4 (e) ELIMINATION OF REQUIREMENT TO DEVELOP

5 AND REPORT ON LONG-TERM COST PROJECTIONS.—Sec6 tion 346(c) (7 U.S.C. 1994(c)) is repealed.

7 (f) ELIMINATION OF AUTHORITY TO INSURE

8 LOANS.—

9 (1) Section 302(b) (7 U.S.C. 1922(b)) is

10 amended by striking ‘‘or insured’’.

11 (2) Section 303 (7 U.S.C. 1923), as amended

12 by section 103(a)(1) of this Act, is amended by

13 striking ‘‘or insured’’.

14 (3) Section 304(b) (7 U.S.C. 1924(b)) is

15 amended by striking ‘‘or insured’’.

16 (4) Section 305 (7 U.S.C. 1925) is amended by

17 striking ‘‘or insure’’.

18 (5) Section 306(a)(1) (7 U.S.C. 1926(a)(1)) is

19 amended—

20 (A) by striking ‘‘or insure’’; and

21 (B) by striking ‘‘or insured’’.

22 (6) Section 306(a)(15)(A) (7 U.S.C.

23 1926(a)(15)(A)) is amended—

24 (A) by striking ‘‘or insure’’; and

25 (B) by striking ‘‘or insured’’.
36

•HR 2973 IH

1 (7) Section 306C(a)(1) (7 U.S.C. 1926c(a)(1))

2 is amended by striking ‘‘or insure’’.

3 (8) Section 306C(b)(1) (7 U.S.C. 1926c(b)(1))

4 is amended by striking ‘‘or insure’’.

5 (9) Section 307(a)(6)(A) (7 U.S.C.

6 1927(a)(6)(A)) is amended by striking ‘‘or insured’’.

7 (10) Section 307(c) (7 U.S.C. 1927(c)) is

8 amended by striking ‘‘, insured,’’.

9 (11) Section 308 (7 U.S.C. 1928) is amended

10 by striking the 1st sentence.

11 (12) Section 309(f)(1) (7 U.S.C. 1929(f)(1)) is

12 amended—

13 (A) by striking ‘‘could be’’ and inserting

14 ‘‘(before the date of the enactment of the Agri15 cultural Regulatory Relief and Trade Act of

16 1996) could have been’’; and

17 (B) by striking ‘‘and insure’’.

18 (13) Section 309(f)(2) (7 U.S.C. 1929(f)(2)) is

19 amended by striking ‘‘or hereafter’’.

20 (14) Section 309A (7 U.S.C. 1929a) is amend21 ed in each of subsections (d) and (e) by striking ‘‘,

22 guaranteed, or insured’’ and inserting ‘‘or guaran23 teed’’.

24 (15) Section 309A(g)(1) (7 U.S.C.

25 1929a(g)(1)) is amended—
37

•HR 2973 IH

1 (A) by striking ‘‘could be’’ and inserting

2 ‘‘(before the date of the enactment of the Agri3 cultural Regulatory Relief and Trade Act of

4 1996) could have been’’; and

5 (B) by striking ‘‘and insure’’.

6 (16) Section 309A(g) (7 U.S.C. 1929a(g)) is

7 amended in each of paragraphs (2) and (7) by strik8 ing ‘‘or hereafter’’.

9 (17) Section 310A (7 U.S.C. 1931) is repealed.

10 (18) Section 310B(a) (7 U.S.C. 1932(a)) is

11 amended—

12 (A) by striking ‘‘and insure’’; and

13 (B) by striking ‘‘, insured,’’.

14 (19) Section 310B(e)(1) (7 U.S.C. 1932(e)(1))

15 is amended by striking ‘‘insure and’’.

16 (20) Section 310B(e)(2) (7 U.S.C. 1932(e)(2))

17 is amended by striking ‘‘insure or’’.

18 (21) Section 310D(a) (7 U.S.C. 1934(a)) is

19 amended by striking ‘‘and insure’’.

20 (22) Section 311(c) (7 U.S.C. 1941(c)) is

21 amended by striking ‘‘or insured’’.

22 (23) Section 313 (7 U.S.C. 1943) is amended

23 by striking ‘‘or insure’’.

24 (24) Section 316(a)(3) (7 U.S.C. 1946(a)(3)) is

25 amended by striking ‘‘or insured’’.
38

•HR 2973 IH

1 (25) Section 317 (7 U.S.C. 1947) is repealed.

2 (26) Section 322(a) (7 U.S.C. 1962(a)) is

3 amended by striking ‘‘or insure’’.

4 (27) Section 323 (7 U.S.C. 1963) is amended

5 by striking ‘‘or insured’’.

6 (28) Section 324(a) (7 U.S.C. 1964(a)) is

7 amended by striking ‘‘or insured’’.

8 (29) Section 324(b)(2) (7 U.S.C. 1964(b)(2)) is

9 amended—

10 (A) by striking clause (A); and

11 (B) by striking ‘‘(B)’’.

12 (30) Section 328 (7 U.S.C. 1968) is repealed.

13 (31) Section 333A (7 U.S.C. 1983a) is amend14 ed by striking subsection (b).

15 (32) Section 333A(f) (7 U.S.C. 1983a(f)) is

16 amended in each of paragraphs (4) and (5) by strik17 ing ‘‘an insured’’ and inserting ‘‘a’’.

18 (33) Section 335(e)(5)(A) (7 U.S.C.

19 1985(e)(5)(A)) is amended by striking ‘‘made or in20 sured’’.

21 (34) Section 343(a)(4) (7 U.S.C. 1991(a)(4)) is

22 amended by striking ‘‘word ‘insure’ as used in this

23 title includes guarantee, which means’’ and inserting

24 ‘‘term ‘guarantee’ means’’.
39

•HR 2973 IH

1 (35) Section 343(a)(9) (7 U.S.C. 1991(a)(9)) is

2 amended by striking ‘‘or insured’’.

3 (36) Section 344 (7 U.S.C. 1992) is amended

4 by striking ‘‘insured, or made to be sold and in5 sured,’’.

6 (37) Section 346(a) (7 U.S.C. 1994(a)) is

7 amended by striking ‘‘and insured’’.

8 (38) Section 346(b)(1) (7 U.S.C. 1994(b)(1)) is

9 amended by striking ‘‘insured, made to be sold and

10 insured, or’’.

11 (39) Section 346(b)(3) (7 U.S.C. 1994(b)(3)),

12 as amended by sections 106(g)(4) and 107(b)(1) of

13 this Act, is amended by striking subparagraphs (B)

14 and (D) and redesignating subparagraphs (C) and

15 (E) as subparagraphs (B) and (C), respectively.

16 (40) Section 346(d)(1) (7 U.S.C. 1994(d)(1)) is

17 amended by striking ‘‘authorized to be insured, or

18 made to be sold and insured,’’ and inserting

19 ‘‘made’’.

20 (41) Section 348 (7 U.S.C. 1996) is amended—

21 (A) by striking ‘‘and insuring’’;

22 (B) by striking ‘‘and insure’’; and

23 (C) by striking ‘‘or insured’’.

24 (42) Section 351(h)(8)(C) (7 U.S.C.

25 1999(h)(8)(C)) is amended by striking ‘‘, insured, ’’.
40

•HR 2973 IH

1 (43) Section 358 (7 U.S.C. 2006) is amended

2 by striking ‘‘, insure,’’.

3 Subtitle B—Amendments to the

4 Farm Credit Act of 1971

5 SEC. 151. REFERENCES.

6 Except as otherwise expressly provided, wherever in

7 this subtitle an amendment or repeal is expressed in terms

8 of an amendment to, or repeal of, a section or other provi9 sion, the reference shall be considered to be made to a

10 section or other provision of the Farm Credit Act of 1971.

11 SEC. 152. REPEAL OF REQUIREMENTS RELATING TO RE12 VIEW OF DECISIONS TO DENY OR REDUCE

13 THE AMOUNT OF A LOAN.

14 (a) REPEAL.—Section 4.14 (12 U.S.C. 2202) is re15 pealed.

16 (b) CONFORMING AMENDMENTS.—

17 (1) Section 4.13B (12 U.S.C. 2201) is amended

18 in each of subsections (a) and (b)—

19 (A) by adding ‘‘and’’ at the end of para20 graph (1);

21 (B) by striking ‘‘; and’’ at the end of para22 graph (2) and inserting a period; and

23 (C) by striking paragraph (3).
41

•HR 2973 IH

1 (2) Section 4.14A(a)(5)(B)(ii)(I) (12 U.S.C.

2 2202a(a)(5)(B)(ii)(I)) is amended by striking

3 ‘‘4.14,’’.

4 (3) Section 8.9 (12 U.S.C. 2279aa–9) is

5 amended by striking ‘‘4.14,’’ each place such term

6 appears.

7 SEC. 153. PROHIBITION AGAINST RESTRUCTURING OF RE8 STRUCTURED LOANS OR LOANS INVOLVED IN

9 BANKRUPTCY PROCEEDINGS.

10 (a) IN GENERAL.—Section 4.14A(a)(5)(A) (12

11 U.S.C. 2202a(a)(5)(A)) is amended by inserting ‘‘, which

12 has not been restructured under this section and with re13 spect to which the borrower has not filed a petition for

14 bankruptcy under title 11, United States Code’’ before the

15 period.

16 (b) ELIMINATION OF REQUIRED REPORTS TO THE

17 FARM CREDIT ADMINISTRATION.—Section 4.14A (12

18 U.S.C. 2202a) is amended by striking subsections (g) and

19 (h) and inserting the following:

20 ‘‘(g) RESTRUCTURING POLICY.—

21 ‘‘(1) ESTABLISHMENT.—Within 60 days after

22 the date of the enactment of this paragraph, the

23 board of directors of each qualified lender shall de24 velop a policy that is consistent with this section, to

25 govern the restructuring of distressed loans.
42

•HR 2973 IH

1 ‘‘(2) CONTENTS OF POLICY.—The policy estab2 lished under paragraph (1) shall include an expla3 nation of the procedure for submitting an applica4 tion for restructuring.’’.

5 (c) RELATED AMENDMENTS.—Section 4.14A (12

6 U.S.C. 2202a) is amended by striking subsections (k) and

7 (l).

8 (d) CONFORMING AMENDMENTS.—

9 (1) Section 4.14A (12 U.S.C. 2202a) is amend10 ed by redesignating subsections (i) and (j) as sub11 sections (h) and (i), respectively.

12 (2) Section 5.31 (12 U.S.C. 2267) is amended

13 by striking ‘‘4.14A(i)’’ and inserting ‘‘4.14A(h)’’.

14 (3) Section 5.32(h) (12 U.S.C. 2268(h)) is

15 amended by striking ‘‘4.14A(i)’’ and inserting

16 ‘‘4.14A(h)’’.

17 SEC. 154. REPEAL OF RULES GOVERNING EFFECT OF RE18 STRUCTURING ON BORROWER STOCK.

19 (a) REPEAL.—Section 4.14B (12 U.S.C. 2202b) is

20 repealed.

21 (b) CONFORMING AMENDMENTS.—

22 (1) Section 4.9A(b) (12 U.S.C. 2162(b)) is

23 amended—

24 (A) by adding ‘‘or’’ at the end of para25 graph (1);
43

•HR 2973 IH

1 (B) by striking paragraph (2); and

2 (C) by redesignating paragraph (3) as

3 paragraph (2).

4 (2) Section 4.14A(a)(5)(B)(ii)(I) (12 U.S.C.

5 2202a(a)(5)(B)(ii)(I)) is amended by striking

6 ‘‘4.14B,’’.

7 (3) Section 8.9 (12 U.S.C. 2279aa–9) is

8 amended by striking ‘‘4.14B,’’ each place such term

9 appears.

10 SEC. 155. REPEAL OF RULES GOVERNING REVIEW OF RE11 STRUCTURING DENIALS.

12 (a) REPEAL.—Section 4.14C (12 U.S.C. 2202c) is re13 pealed.

14 (b) CONFORMING AMENDMENTS.—

15 (1) Section 4.14A(a)(5)(B)(ii)(I) (12 U.S.C.

16 2202a(a)(5)(B)(ii)(I)) is amended by striking

17 ‘‘4.14C, 4.14D,’’ and inserting ‘‘4.14D’’.

18 (2) Section 8.9 (12 U.S.C. 2279aa–9) is

19 amended by striking ‘‘4.14C,’’ each place such term

20 appears.

21 SEC. 156. ELIMINATION OF CERTAIN REQUIREMENTS RE22 LATING TO LOANS PLACED IN NONACCRUAL

23 STATUS.

24 Section 4.14D (12 U.S.C. 2202d) is amended by

25 striking subsection (d).
44

•HR 2973 IH

1 SEC. 157. LIMITATIONS ON THE RIGHT OF FIRST REFUSAL.

2 Section 4.36 (12 U.S.C. 2219a) is amended—

3 (1) in subsection (a), by striking ‘‘or lease’’;

4 (2) in subsection (b)(1)—

5 (A) by striking ‘‘Within’’ and inserting

6 ‘‘Except as otherwise provided in subsection (c),

7 within’’; and

8 (B) by inserting ‘‘by private sale,’’ after

9 ‘‘such real estate,’’;

10 (3) by striking subsection (c) and redesignating

11 subsections (d) through (g) as subsections (c)

12 through (f), respectively;

13 (4) by redesignating subsections (h) and (i) as

14 subsections (j) and (k), respectively; and

15 (5) by inserting after subsection (f) (as so re16 designated by paragraph (3) of this section) the fol17 lowing:

18 ‘‘(g) PREVIOUS OWNER DEFINED.—As used in this

19 section, the term ‘previous owner’ does not include a mort20 gagor or grantor of an equivalent lien interest in agricul21 tural real estate unless such person is also a borrower in

22 the transaction.

23 ‘‘(h) PERSONAL AND NONASSIGNABLE RIGHT.—The

24 right of first refusal arising under this section is personal

25 to, and not assignable by, the previous owner.
45

•HR 2973 IH

1 ‘‘(i) RULE OF INTERPRETATION.—This section shall

2 not be interpreted to preclude a borrower from voluntarily

3 waiving the right of first refusal arising under this section

4 in connection with a voluntary conveyance of agricultural

5 real estate in lieu of foreclosure.’’.

6 TITLE II—RURAL DEVELOPMENT

7 SEC. 201. CAPITALIZATION GRANTS TO STATES FOR RURAL

8 DEVELOPMENT.

9 The Rural Development Act of 1972 is amended by

10 adding at the end the following:

11 ‘‘TITLE VII—CAPITALIZATION

12 GRANTS TO STATES FOR

13 RURAL DEVELOPMENT

14 ‘‘SEC. 701. PURPOSES.

15 ‘‘The purpose of this title is to provide eligible States

16 and territories with a consolidated source of funding for

17 rural development, and to encourage States to establish

18 revolving funds through which rural development may be

19 financed permanently.

20 ‘‘SEC. 702. GRANTS.

21 ‘‘(a) GRANT AUTHORITY.—

22 ‘‘(1) IN GENERAL.—

23 ‘‘(A) GRANTS TO ELIGIBLE STATES.—Each

24 eligible State shall be entitled to receive from

25 the Secretary for each fiscal year a grant in an
46

•HR 2973 IH

1 amount equal to the applicable share of 99.25

2 percent of the amount (if any) appropriated

3 pursuant to this subsection for the fiscal year.

4 ‘‘(B) GRANTS TO ELIGIBLE TERRI5 TORIES.—Each eligible territory shall be enti6 tled to receive from the Secretary for each fiscal

7 year a grant in an amount equal to the applica8 ble share of 0.75 percent of the amount (if any)

9 appropriated pursuant to this subsection for the

10 fiscal year.

11 ‘‘(2) SUBJECT TO APPROPRIATIONS.—The au12 thority provided by paragraph (1) shall be effective

13 only to such extent or in such amounts as are pro14 vided in advance in appropriations Acts.

15 ‘‘(3) LIMITATIONS ON AUTHORIZATION OF AP16 PROPRIATIONS.—For grants under paragraph (1),

17 there are authorized to be appropriated to the Sec18 retary not more than $836,025,000 for each of fiscal

19 years 1996 through 2002.

20 ‘‘(b) RULES GOVERNING PAYMENTS.—Grants under

21 this section shall be paid under rules prescribed by the

22 Secretary, which shall be similar to the rules provided for

23 in the document published by the Environmental Protec24 tion Agency on January 29, 1988, and entitled ‘SRF Ini25 tial Guidance For State Revolving Funds’.
47

•HR 2973 IH

1 ‘‘(c) LIMITATION ON FEDERAL AUTHORITY.—A ju2 risdiction to which funds are provided under this section

3 shall have sole discretion to determine how such funds are

4 to be expended and the entities to which such funds are

5 to be provided, subject to this title.

6 ‘‘(d) DEFINITIONS.—As used in this title:

7 ‘‘(1) ELIGIBLE STATE.—The term ‘eligible

8 State’ means a State that meets the following re9 quirements:

10 ‘‘(A) The State has established a rural de11 velopment revolving fund.

12 ‘‘(B) The State has established to the sat13 isfaction of the Secretary that the revolving

14 fund will be operated and administered in ac15 cordance with section 703(a).

16 ‘‘(C) The State has agreed that the State

17 agency responsible for administering the revolv18 ing fund shall—

19 ‘‘(i) consult with representatives of

20 local governments, businesses, nonprofit

21 organizations, and with the State agency

22 with expertise in rural development and

23 agriculture, in implementing this title; and

24 ‘‘(ii) consult with general purpose

25 local governments in developing priorities
48

•HR 2973 IH

1 for funding activities from the revolving

2 fund, criteria for selecting recipients of as3 sistance from the revolving fund, and the

4 method of distributing funds from the re5 volving fund.

6 ‘‘(D)(i) The State has agreed to submit to

7 the Secretary biennial reports which describe

8 the manner in which the amounts paid to the

9 State under this section are used, and include

10 evidence that, in each fiscal year covered by the

11 report, the State has expended for rural devel12 opment from State sources an amount equal to

13 not less than 20 percent of the total amount

14 paid to the State under subsection (a) during

15 the fiscal year.

16 ‘‘(ii) As used in clause (i), the term ‘rural

17 development’ includes—

18 ‘‘(I) rural infrastructure, including

19 water and sewer systems, highways, roads,

20 and bridges;

21 ‘‘(II) rural education and job training,

22 including vocational and technical training;

23 ‘‘(III) rural health services; and

24 ‘‘(IV) rural housing assistance.
49

•HR 2973 IH

1 ‘‘(2) ELIGIBLE TERRITORY.—The term ‘eligible

2 territory’ means a territory that meets the following

3 requirements:

4 ‘‘(A) The territory has agreed to use the

5 funds provided to the territory under subsection

6 (a) only for qualified rural development pur7 poses.

8 ‘‘(B) The territory has agreed to submit to

9 the Secretary biennial reports which describe

10 the manner in which the amounts paid to the

11 territory under this section are used, and in12 clude evidence that, in each fiscal year covered

13 by the report, the territory has expended for

14 rural development from territory sources an

15 amount equal to not less than 20 percent of the

16 total amount paid to the territory under sub17 section (a) during the fiscal year.

18 ‘‘(3) STATE.—The term ‘State’ means the 50

19 States.

20 ‘‘(4) TERRITORY.—The term ‘territory’ means

21 the Commonwealth of Puerto Rico, the United

22 States Virgin Islands, the Commonwealth of the

23 Northern Mariana Islands, Guam, American Samoa,

24 and the Trust Territory of the Pacific Islands.
50

•HR 2973 IH

1 ‘‘(5) SECRETARY.—The term ‘Secretary’ means

2 the Secretary of Agriculture.

3 ‘‘(6) APPLICABLE SHARE.—

4 ‘‘(A) FOR STATES.—The term ‘applicable

5 share’ means, with respect to a State—

6 ‘‘(i) the annual average amount paid

7 to the State during fiscal years 1991

8 through 1995 from amounts made avail9 able for loans and grants for rural water

10 and waste disposal pursuant to section 306

11 of the Consolidated Farm and Rural De12 velopment Act (as in effect before the ef13 fective date of title II of the Agricultural

14 Regulatory Relief and Trade Act of 1996);

15 divided by

16 ‘‘(ii) the total amount paid to all

17 States during such fiscal years from the

18 amounts so made available.

19 ‘‘(B) FOR TERRITORIES.—The term ‘appli20 cable share’ means, with respect to a terri21 tory—

22 ‘‘(i) the annual average amount paid

23 to the territory during fiscal years 1991

24 through 1995 from amounts made avail25 able for loans and grants for rural water
51

•HR 2973 IH

1 and waste disposal pursuant to section 306

2 of the Consolidated Farm and Rural De3 velopment Act (as in effect before the ef4 fective date of title II of the Agricultural

5 Regulatory Relief and Trade Act of 1996);

6 divided by

7 ‘‘(ii) the total amount paid to all terri8 tories during such fiscal years from the

9 amounts so made available.

10 ‘‘SEC. 703. STATE RURAL DEVELOPMENT REVOLVING

11 FUNDS.

12 ‘‘(a) REQUIREMENTS.—A State rural development

13 revolving fund shall be operated and administered in ac14 cordance with the following requirements:

15 ‘‘(1) GRANTS TO BE DEPOSITED INTO THE

16 FUND.—Any amount paid to the State under section

17 702(a) shall be immediately deposited into the fund.

18 ‘‘(2) USE OF AMOUNTS.—

19 ‘‘(A) IN GENERAL.—The amounts in the

20 fund shall be made available in perpetuity and

21 be used only for qualified rural development

22 purposes.

23 ‘‘(B) EXCEPTION.—Notwithstanding sub24 paragraph (A), any amounts in the fund which

25 are not immediately to be used in accordance
52

•HR 2973 IH

1 with subparagraph (A) may be invested in in2 terest-bearing securities.

3 ‘‘(C) PROHIBITION.—The amounts in the

4 fund may not be used to guarantee the repay5 ment of principal or interest on any loan made

6 from the fund.

7 ‘‘(3) LIMITATIONS ON TERM OF LOANS.—Loans

8 may be made from the fund at or below market in9 terest rates (including interest-free), and shall not

10 be made for a period that exceeds the lesser of—

11 ‘‘(A) the life of the activities so financed;

12 or

13 ‘‘(B) 40 years.

14 ‘‘(4) CREDITING OF REPAYMENTS.—The fund

15 will be credited with all repayments of principal and

16 interest on loans and investments made from the

17 fund.

18 ‘‘(5) LIMIT ON PERCENTAGE OF FEDERAL

19 FUNDS USED FOR GRANTS.—Not more than 30 per20 cent of the amounts in the fund may be used to

21 make grants during any fiscal year.

22 ‘‘(6) MINIMUM PERCENTAGE OF RURAL DEVEL23 OPMENT FUNDS USED FOR COMMUNITIES WITH POP24 ULATIONS OF 10,000 OR LESS.—Not less than 80

25 percent of the amounts in the fund shall be used for
53

•HR 2973 IH

1 the benefit of communities with populations of

2 10,000 or fewer individuals.

3 ‘‘(7) LIMIT ON PERCENTAGE OF RURAL DEVEL4 OPMENT FUNDS USED FOR COMMUNITIES WITH POP5 ULATIONS EXCEEDING 10,000 BUT NOT EXCEEDING

6 25,000.—Not more than 20 percent of the amounts

7 in the fund may be used for the benefit of commu8 nities with populations exceeding 10,000 but not ex9 ceeding 25,000 individuals.

10 ‘‘(8) MINIMUM PERCENTAGE OF FEDERAL

11 FUNDS USED FOR TECHNICAL ASSISTANCE RELATED

12 TO WATER AND WASTE DISPOSAL.—Not less than 1

13 percent of the amounts paid to the State under sec14 tion 702(a) during the fiscal year shall be used to

15 provide financing pursuant to subsection (b)(2) of

16 this section.

17 ‘‘(9) PRIORITY TO BE GIVEN IN MAKING

18 GRANTS FOR TECHNICAL ASSISTANCE RELATED TO

19 WATER AND WASTE DISPOSAL.—In making grants

20 pursuant to subsection (b)(2), priority shall be given

21 to organizations with experience in providing tech22 nical assistance and training to associations serving

23 rural areas.

24 ‘‘(10) ACCOUNTING FOR FUNDS BY RECIPI25 ENTS.—An amount in the fund shall not be provided
54

•HR 2973 IH

1 to any entity unless, as a condition of providing the

2 amount, the entity agrees to account for the amount

3 in accordance with generally accepted accounting

4 principles.

5 ‘‘(11) REASONABLE ASSURANCE OF LOAN RE6 PAYMENT.—A loan shall not be made to an entity

7 from the fund unless the entity provides reasonable

8 assurance of a source of funds for repayment of the

9 loan.

10 ‘‘(12) CERTIFICATION BY LOCAL GOVERNMENTS

11 OF DIRECT BENEFIT TO LOCAL RESIDENTS.—An

12 amount in the fund shall not be provided to any en13 tity for any activity to be conducted in an area un14 less the entity has provided the State with a certifi15 cation from the unit of local government for the area

16 that the activity will directly benefit the residents of

17 the area.

18 ‘‘(13) POWERS OF FUND ADMINISTRATOR.—

19 The fund shall be administered by an instrumental20 ity of the State with such powers as may be required

21 to operate the fund in accordance with this title.

22 ‘‘(b) QUALIFIED RURAL DEVELOPMENT PURPOSE.—

23 As used in this title, the term ‘qualified rural development

24 purpose’ means any of the following:
55

•HR 2973 IH

1 ‘‘(1) WATER AND WASTE DISPOSAL AND ESSEN2 TIAL COMMUNITY FACILITIES PROGRAMS.—To make

3 loans or grants, or to guarantee the repayment of

4 principal or interest on loans made, to associations,

5 including corporations not operated for profit, In6 dian tribes on Federal and State reservations and

7 other federally recognized Indian tribes, and public

8 and quasi-public agencies, all primarily serving

9 farmers, ranchers, farm tenants, farm laborers,

10 rural businesses, and other rural residents—

11 ‘‘(A) to provide for the conservation, devel12 opment, use, and control of water, and the in13 stallation or improvement of drainage or waste

14 disposal facilities, and to furnish financial as15 sistance or other aid in planning projects for

16 such purposes;

17 ‘‘(B) to provide for essential community

18 facilities, including necessary related equipment;

19 or

20 ‘‘(C) to finance specific projects for works

21 for the development, storage, treatment, purifi22 cation, or distribution of water or the collection,

23 treatment, or disposal of waste in rural areas.

24 ‘‘(2) RURAL WATER AND WASTE DISPOSAL CIR25 CUIT RIDER TECHNICAL ASSISTANCE AND TRAINING
56

•HR 2973 IH

1 PROGRAM.—To make grants to private nonprofit or2 ganizations to enable such organizations to provide

3 to associations described in paragraph (1) technical

4 assistance and training—

5 ‘‘(A) to identify, and evaluate alternative

6 solutions to, problems relating to the obtaining,

7 storage, treatment, purification, or distribution

8 of water or the collection, treatment, or disposal

9 of waste in rural areas;

10 ‘‘(B) to prepare applications to receive fi11 nancial assistance for any purpose specified in

12 paragraph (1) from any public or private

13 source; or

14 ‘‘(C) to improve the operation and mainte15 nance practices at any existing works for the

16 storage, treatment, purification, or distribution

17 of water or the collection, treatment, or disposal

18 of waste in rural areas.

19 ‘‘(3) RURAL BUSINESS AND INDUSTRY.—

20 ‘‘(A) IN GENERAL.—To make loans or

21 grants to public, private, or cooperative organi22 zations organized not for profit, to Indian tribes

23 on Federal and State reservations or other fed24 erally recognized Indian tribal groups, or to

25 make loans, or guarantee the repayment of
57

•HR 2973 IH

1 principal or interest on loans made, to private

2 or cooperative organizations organized for prof3 it, for the purposes of—

4 ‘‘(i) improving, developing, or financ5 ing business, industry, and employment

6 and improving the economic climate in

7 rural communities; or

8 ‘‘(ii) the conservation, development,

9 and use of water for aquaculture purposes

10 in rural areas.

11 ‘‘(B) INTERMEDIARY RELENDING.—To

12 make loans to nonprofit organizations for the

13 purpose of funding revolving loan funds oper14 ated in accordance with rules similar to the

15 rules governing the operation of the State rural

16 development revolving fund established pursu17 ant to section 702(d)(1)(A), or to guarantee the

18 repayment of principal or interest on loans

19 made by such revolving loan funds to organiza20 tions organized for profit for the purposes de21 scribed in subparagraph (A) of this paragraph.

22 ‘‘(4) SOLID WASTE MANAGEMENT.—To make

23 loans or grants to nonprofit organizations for the

24 provision of regional technical assistance to local and

25 regional governments and related agencies for the
58

•HR 2973 IH

1 purpose of improving the planning and management

2 of solid waste disposal facilities.

3 ‘‘(5) RURAL BUSINESS ENTERPRISE.—To make

4 loans or grants to public bodies and private non5 profit corporations for measures designed to finance

6 and facilitate development of small and emerging

7 private business enterprises or the creation, expan8 sion, and operation of rural distance learning net9 works or rural learning programs that provide edu10 cational instruction or job training instruction relat11 ed to potential employment or job advancement to

12 adult students, including the development, construc13 tion or acquisition of land, buildings, plants, equip14 ment, access streets and roads, parking areas, utility

15 extensions, necessary water supply and waste dis16 posal facilities, refinancing, services and fees, or for

17 the purpose of demonstrating the effectiveness of

18 statewide nonprofit public television systems whose

19 coverage area is primarily rural in providing infor20 mation on agriculture and other issues of impor21 tance to farmers and other rural residents.

22 ‘‘(6) RURAL TECHNOLOGY AND COOPERATIVE

23 DEVELOPMENT.—To make loans or grants to any

24 organization or institution, including an accredited

25 institution of higher education, no part of the net
59

•HR 2973 IH

1 earnings of which inures, or may lawfully inure, to

2 the benefit of any private shareholder or individual,

3 for the purpose of enabling the organization or insti4 tution to establish and operate centers for rural

5 technology or cooperative development—

6 ‘‘(A) the primary objective of which may

7 be to improve the economic condition of rural

8 areas by promoting the development (through

9 technological innovation, cooperative develop10 ment, and adaptation of existing technology)

11 and commercialization of—

12 ‘‘(i) new services and products that

13 can be produced or provided in rural areas;

14 ‘‘(ii) new processes that can be uti15 lized in the production of products in rural

16 areas; and

17 ‘‘(iii) new enterprises that can add

18 value to on-farm production through proc19 essing or marketing; and

20 ‘‘(B) the activities of which may include—

21 ‘‘(i) programs for technology research,

22 investigations, and basic feasibility studies

23 in any field or discipline for the purpose of

24 generating principles, facts, technical

25 knowledge, new technology, or other infor-
60

•HR 2973 IH

1 mation that may be useful to rural indus2 tries, cooperatives, agribusinesses, and

3 other persons or entities in rural areas

4 served by such centers in the development

5 and commercialization of new products,

6 processes, or services;

7 ‘‘(ii) programs for the collection, in8 terpretation, and dissemination of prin9 ciples, facts, technical knowledge, new

10 technology, or other information that may

11 be useful to rural industries, cooperatives,

12 agribusinesses, and other persons in rural

13 areas served by the center in the develop14 ment and commercialization of new prod15 ucts, processes, or services;

16 ‘‘(iii) programs providing training and

17 instruction for individuals residing in rural

18 areas served by the center with respect to

19 the development (through technological in20 novation, cooperative development, and ad21 aptation of existing technology) and com22 mercialization of new products, processes,

23 or services;

24 ‘‘(iv) programs providing loans and

25 grants to individuals, small businesses, and
61

•HR 2973 IH

1 cooperatives in rural areas served by the

2 center for purposes of generating, evaluat3 ing, developing, and commercializing new

4 products, processes, or services;

5 ‘‘(v) programs providing technical as6 sistance and advisory services to individ7 uals, small businesses, cooperatives, and

8 industries in rural areas served by the cen9 ter for purposes of developing and commer10 cializing new products, processes, or serv11 ices; or

12 ‘‘(vi) programs providing research and

13 support to individuals, small businesses,

14 cooperatives, and industries in rural areas

15 served by the center for purposes of devel16 oping new agricultural enterprises to add

17 value to on-farm production through proc18 essing or marketing.

19 ‘‘(7) DISTANCE LEARNING AND MEDICAL

20 LINKS.—To make loans or grants to encourage and

21 improve the use of telecommunications, computer

22 networks, and related advanced technologies, by per23 sons associated with end users of such facilities, in24 cluding students and teachers, medical professionals,

25 small businesses, and other residents living in rural
62

•HR 2973 IH

1 areas associated with rural community facilities in

2 rural areas.

3 ‘‘(8) PROVISION OF SECURITY FOR CERTAIN

4 STATE OBLIGATIONS USED TO RAISE FUNDS FOR

5 RURAL DEVELOPMENT.—To provide security for, or

6 to make principal or interest payments on revenue

7 or general obligation bonds issued by the State if the

8 proceeds from the sale of such bonds is deposited in

9 the State rural development revolving fund estab10 lished pursuant to section 702(d)(1)(A).

11 ‘‘(9) LIMITED ADMINISTRATIVE COSTS.—To

12 pay the costs of administering the State rural devel13 opment revolving fund established pursuant to sec14 tion 702(d)(1)(A), except that amounts expended

15 from the fund during any fiscal year for this purpose

16 may not exceed 3 percent of the total amount paid

17 to the State under section 702(a) for the fiscal year.

18 ‘‘(10) FINANCIAL SUPPORT FOR LOCAL FINANC19 ING OF RURAL DEVELOPMENT.—To guarantee, or

20 purchase insurance for, local obligations the pro21 ceeds of which shall be used for another qualified

22 rural development purpose.

23 ‘‘(11) LOCAL SHARE REQUIREMENTS OF OTHER

24 FEDERAL GRANT-IN-AID PROGRAMS RELATED TO

25 RURAL DEVELOPMENT.—To pay the local share re-
63

•HR 2973 IH

1 quirements of another Federal grant-in-aid program

2 related to rural development to the extent not ex3 pressly prohibited by the law providing for the

4 grant-in-aid program.

5 ‘‘(12) INTERSTATE RURAL DEVELOPMENT AC6 TIVITIES.—To participate with other States or terri7 tories in arrangements for the financing of a quali8 fied rural development purpose which is of interstate

9 character.

10 ‘‘(13) ASSISTANCE TO OTHER STATES FOR

11 RURAL DEVELOPMENT.—To make loans to another

12 State or territory for a qualified rural development

13 purpose.

14 ‘‘(c) OTHER DEFINITIONS.—

15 ‘‘(1) AQUACULTURE.—The term ‘aquaculture’

16 means the culture or husbandry of aquatic animals

17 or plants by private industry for commercial pur18 poses including the culture and growing of fish by

19 private industry for the purpose of creating or aug20 menting publicly owned and regulated stocks of fish.

21 ‘‘(2) RURAL; RURAL AREA.—

22 ‘‘(A) IN GENERAL.—The terms ‘rural’ and

23 ‘rural area’ means all area of a State or terri24 tory that is not within the outer boundary of

25 any city having a population of 50,000 or more
64

•HR 2973 IH

1 individuals and its immediately adjacent urban2 ized and urbanizing areas with a population

3 density of more than 100 individuals per square

4 mile, according to the latest census data avail5 able.

6 ‘‘(B) COLONIAS INCLUDED.—The terms

7 ‘rural’ and ‘rural area’ include any identifiable

8 community that—

9 ‘‘(i) is in the State of Arizona, Cali10 fornia, New Mexico, or Texas;

11 ‘‘(ii) is in the United States-Mexico

12 border region;

13 ‘‘(iii) is determined to be a colonia on

14 the basis of objective criteria, including

15 lack of potable water supply, lack of ade16 quate sewage systems, and lack of decent,

17 safe, and sanitary housing; and

18 ‘‘(iv) was in existence as a colonia be19 fore October 1, 1989.

20 ‘‘SEC. 704. ENFORCEMENT PROVISIONS.

21 ‘‘(a) REVIEW AND MONITORING.—The Rural Eco22 nomic and Community Development Director of a jurisdic23 tion to which a payment is made under section 702 shall

24 review and monitor compliance by the jurisdiction with

25 this title.
65

•HR 2973 IH

1 ‘‘(b) ENFORCEMENT RECOMMENDATIONS.—If the

2 Rural Economic and Community Development Director of

3 a jurisdiction, after reasonable notice to the jurisdiction,

4 finds that there has been a failure by the jurisdiction to

5 comply substantially with any provision or requirement of

6 this title, the Director shall notify the Secretary of the

7 noncompliance and recommend that the Secretary take 1

8 or more of the following actions:

9 ‘‘(1) Suspend payments to the jurisdiction

10 under section 702 until the Director is satisfied that

11 the noncompliance has ceased or that the noncompli12 ance will be corrected promptly.

13 ‘‘(2) Recover any funds expended in violation of

14 this title.

15 ‘‘(3) Limit further payment to the jurisdiction

16 under section 702 to activities not affected by the

17 noncompliance, until the Director is satisfied that

18 the noncompliance has ceased or that the noncompli19 ance will be corrected promptly.

20 ‘‘(4) Offset the amounts improperly expended

21 against any other amount that is or will be payable

22 to the jurisdiction under section 702.

23 ‘‘(5) Refer the matter to the Attorney General

24 of the United States.
66

•HR 2973 IH

1 ‘‘(6) Disqualify the jurisdiction from the receipt

2 of payments under section 702 for 12 months.

3 ‘‘(7) Reduce payments to the jurisdiction under

4 section 702 for 12 months.

5 ‘‘(c) IMPOSITION OF PENALTIES.—Within 90 days

6 after receiving notice and a recommendation from the

7 Rural Economic and Community Development Director of

8 a jurisdiction pursuant to subsection (b) and after provid9 ing reasonable notice to the jurisdiction and opportunity

10 for a hearing, the Secretary shall, pursuant to a written

11 ruling which shall be based on the recommendation of the

12 Director and the hearing, take any action described in

13 subsection (b) as the Secretary deems appropriate.

14 ‘‘(d) RURAL ECONOMIC AND COMMUNITY DEVELOP15 MENT DIRECTOR.—As used in this section, the term

16 ‘Rural Economic and Community Development Director’

17 means, with respect to a jurisdiction, the officer or em18 ployee of the United States Department of Agriculture

19 who is holding such position with respect to the jurisdic20 tion.’’.

21 SEC. 202. ELIMINATION OF OTHER RURAL DEVELOPMENT

22 PROGRAMS.

23 (a) UNDER THE CONSOLIDATED FARM AND RURAL

24 DEVELOPMENT ACT.—
67

•HR 2973 IH

1 (1) Section 304 of the Consolidated Farm and

2 Rural Development Act (7 U.S.C. 1924), as amend3 ed by sections 102(a)(1)(B)(i) and 108(f)(3) of this

4 Act, is amended by striking subsection (b) and re5 designating subsection (c) as subsection (b).

6 (2) Section 306 of such Act (7 U.S.C. 1926),

7 as amended by sections 108(f)(5) and 108(f)(6) of

8 this Act, is repealed.

9 (3) Section 306A of such Act (7 U.S.C. 1926a)

10 is repealed.

11 (4) Section 306B of such Act (7 U.S.C. 1926b)

12 is repealed.

13 (5) Section 306C of such Act (7 U.S.C. 1926c),

14 as amended by sections 108(f)(7) and 108(f)(8) of

15 this Act, is repealed.

16 (6) Section 310A of such Act (7 U.S.C. 1931),

17 as amended by section 108(f)(17) of this Act, is re18 pealed.

19 (7) Section 310B of such Act (7 U.S.C. 1932),

20 as amended by section 104(f)(2) and paragraphs

21 (18), (19), and (20) of section 108(f) of this Act, is

22 repealed.

23 (8) Section 312 of such Act (7 U.S.C. 1942),

24 as amended by sections 102(b)(1)(B)(i),
68

•HR 2973 IH

1 102(b)(1)(B)(ii), 102(b)(3), 103(c)(1), and 105(a)

2 of this Act, is amended—

3 (A) in the 1st sentence of subsection (a)—

4 (i) by striking clauses (5), (6), (10),

5 and (11);

6 (ii) by adding ‘‘or’’ at the end of

7 clause (8);

8 (iii) by striking the comma at the end

9 of clause (9) and inserting a period; and

10 (iv) by redesignating clauses (7), (8),

11 and (9) as clauses (5), (6), and (7), respec12 tively; and

13 (B) by striking subsections (b), (c), and

14 (d) and redesignating subsection (e) as sub15 section (b).

16 (9) Section 365 of such Act (7 U.S.C. 2008) is

17 repealed.

18 (10) Section 366 of such Act (7 U.S.C. 2008a)

19 is repealed.

20 (11) Section 367 of such Act (7 U.S.C. 2008b)

21 is repealed.

22 (12) Section 368 of such Act (7 U.S.C. 2008c)

23 is repealed.

24 (b) UNDER THE FOOD, AGRICULTURE, CONSERVA25 TION, AND TRADE ACT OF 1990.—
69

•HR 2973 IH

1 (1) Section 2281 of the Food, Agriculture, Con2 servation, and Trade Act of 1990 (42 U.S.C. 5177a)

3 is repealed.

4 (2) Subtitle B of title XXIII of such Act (7

5 U.S.C. 2007–2007e) is repealed.

6 (3) Section 2322 of such Act (7 U.S.C.

7 1926–1) is repealed.

8 (4) Section 2324 of such Act (7 U.S.C. 1926

9 note) is repealed.

10 (5) Section 2348 of such Act (7 U.S.C. 2662a)

11 is repealed.

12 (6) Section 2381 of such Act (7 U.S.C. 3125b)

13 is repealed.

14 (7) Section 2382 of such Act (13 U.S.C. 141

15 note) is repealed.

16 (8) Section 2385 of such Act (7 U.S.C.

17 950aaa–4 note) is repealed.

18 (9) Section 2391 of such Act (7 U.S.C. 2662

19 note) is repealed.

20 (10) Section 2392 of such Act (13 U.S.C. 141

21 note) is repealed.

22 (11) Section 2517 of such Act (104 Stat. 4077)

23 is repealed.

24 (c) INDIAN SUBSISTENCE FARMING DEMONSTRA25 TION GRANT PROGRAM.—Subtitle C of title IX of the
70

•HR 2973 IH

1 Food, Agriculture, Conservation, and Trade Act Amend2 ments of 1991 (7 U.S.C. 5930 note) is repealed.

3 (d) INTERMEDIARY RELENDING PROGRAM.—Section

4 407 of the Human Services Reauthorization Act of 1986

5 (42 U.S.C. 9812a) is repealed.

6 (e) UNDER THE FOOD SECURITY ACT OF 1985.—

7 Section 1323 of the Food Security Act of 1985 (7 U.S.C.

8 1932 note) is repealed.

9 (f) UNDER THE RURAL DEVELOPMENT ACT OF

10 1972.—

11 (1) Title V of the Rural Development Act of

12 1972 (7 U.S.C. 2661–2669) is repealed.

13 (2) Section 603 of such Act (7 U.S.C. 2204a)

14 is amended by striking subsection (c).

15 (g) UNDER THE RURAL ELECTRIFICATION ACT OF

16 1936.—

17 (1) Section 3 of the Rural Electrification Act of

18 1936 (7 U.S.C. 903) is repealed.

19 (2) Section 5 of such Act (7 U.S.C. 905) is re20 pealed.

21 (3) Section 311 of such Act (7 U.S.C. 940a) is

22 repealed.

23 (4) Title V of such Act (7 U.S.C. 950aa–

24 950aa–1) is repealed.
71

•HR 2973 IH

1 SEC. 203. CONFORMING AMENDMENTS.

2 (a) CONSOLIDATED FARM AND RURAL DEVELOP3 MENT ACT AMENDMENTS.—

4 (1) Section 307(a)(3) of the Consolidated Farm

5 and Rural Development Act (7 U.S.C. 1927(a)(3))

6 is amended—

7 (A) by striking subparagraphs (A) and

8 (C); and

9 (B) in subparagraph (B)—

10 (i) by striking ‘‘(B)’’;

11 (ii) by redesignating clauses (i) and

12 (ii) as subparagraphs (A) and (B), respec13 tively; and

14 (iii) by redesignating subclauses (I)

15 and (II) of subparagraph (A) (as so redes16 ignated by clause (ii) of this subparagraph)

17 as clauses (i) and (ii), respectively.

18 (2) Section 307(a) of such Act (7 U.S.C.

19 1927(a)) is amended by striking paragraph (4).

20 (3) Section 307(a)(5) of such Act (7 U.S.C.

21 1927(a)(5)) is amended—

22 (A) by striking ‘‘(A) Except as provided in

23 subparagraph (B), the’’ and inserting ‘‘The’’;

24 and

25 (B) by striking subparagraph (B).
72

•HR 2973 IH

1 (4) Section 307(a)(6)(B) of such Act (7 U.S.C.

2 1927(a)(6)(B)) is amended—

3 (A) by adding ‘‘and’’ at the end of clause

4 (i); and

5 (B) by striking clauses (ii), (iii), (iv), (v),

6 and (vi) and redesignating clause (vii) as clause

7 (ii).

8 (5) Section 307(c) of such Act (7 U.S.C.

9 1927(c)) is amended by striking ‘‘, and for obliga10 tions in connection with loans to associations under

11 section 306, shall take liens on the facility or such

12 other security as he may determine to be necessary’’.

13 (6) Section 309(g)(1) of such Act (7 U.S.C.

14 1929(g)(1)) is amended by striking ‘‘the last sen15 tence of section 306(a)(1),’’.

16 (7) Section 309A(a) of such Act (7 U.S.C.

17 1929a(a)) is amended by inserting ‘‘(as in effect be18 fore the effective date of title II of the Agricultural

19 Regulatory Relief and Trade Act of 1996)’’ after

20 each of ‘‘304(b)’’, ‘‘306(a)(1)’’, ‘‘306(a)(14)’’,

21 ‘‘310B’’, and ‘‘312(b)’’.

22 (8) Section 309A(a) of such Act (7 U.S.C.

23 1929a(a)) is amended by inserting ‘‘prior to the re24 peal of such sections by the Agricultural Regulatory

25 Relief and Trade Act of 1996,’’ after ‘‘312(b),’’.
73

•HR 2973 IH

1 (9) Section 309A(g)(8) of such Act (7 U.S.C.

2 1929a(g)(8)) is amended—

3 (A) by striking ‘‘make grants under sec4 tions 306(a) and 310B of this title,’’; and

5 (B) by striking ‘‘including costs of the Sec6 retary incidental to guaranteeing rural develop7 ment loans under this title,’’.

8 (10) Section 310C(a) of such Act (7 U.S.C.

9 1933(a)) is amended—

10 (A) by redesignating clauses (1), (2), and

11 (3) as clauses (A), (B), and (C), respectively;

12 (B) by inserting ‘‘(1)’’ after ‘‘(a)’’; and

13 (C) by adding after and below the end the

14 following:

15 ‘‘(2) As used in paragraph (1), the terms ‘rural’ and

16 ‘rural area’ shall not include any area in any city or town

17 which has a population in excess of 10,000 inhabitants.’’.

18 (11) Section 316(a) of such Act (7 U.S.C.

19 1946(a)), as amended by section 108(f)(24) of this

20 Act, is amended by striking paragraph (3).

21 (12) Section 331(b) of such Act (7 U.S.C.

22 1981(b)) is amended—

23 (A) by adding ‘‘and’’ at the end of para24 graph (7);
74

•HR 2973 IH

1 (B) in paragraph (8), by striking ‘‘; and’’

2 and inserting a period; and

3 (C) by striking paragraph (9).

4 (13) Section 333A(a) of such Act (7 U.S.C.

5 1983a(a)) is amended by striking paragraph (4).

6 (14) Section 344 of such Act (7 U.S.C. 1992),

7 as amended by section 108(f)(36) of this Act, is re8 pealed.

9 (b) DEPARTMENT OF AGRICULTURE REORGANIZA10 TION ACT OF 1994 AMENDMENTS.—

11 (1) Section 232(c) of the Department of Agri12 culture Reorganization Act of 1994 (7 U.S.C.

13 6942(c)) is amended by striking paragraphs (1) and

14 (2) and inserting the following:

15 ‘‘(1) Electric and telephone loan programs and

16 water and waste facility activities authorized by law,

17 including the Rural Electrification Act of 1936 (7

18 U.S.C. 901 et seq.).

19 ‘‘(2) Water and waste facility programs and ac20 tivities authorized by law, including the provisions of

21 sections 309 and 309A of the Consolidated Farm

22 and Rural Development Act (7 U.S.C. 1929 and

23 1929a) relating to assets, terms, and conditions of

24 water and sewer programs, and section 35 of the
75

•HR 2973 IH

1 Bankhead-Jones Farm Tenant Act (7 U.S.C.

2 1013a).’’.

3 (2) Section 233(b) of such Act (7 U.S.C.

4 6943(b)) is amended—

5 (A) by striking paragraph (2); and

6 (B) in paragraph (3)—

7 (i) by striking ‘‘(3)’’ and inserting

8 ‘‘(2)’’; and

9 (ii) by striking ‘‘programs authorized

10 by sections 365 through’’ and inserting

11 ‘‘activities under section’’.

12 (3) Section 234(b) of such Act (7 U.S.C.

13 6944(b)) is amended—

14 (A) in paragraph (1)—

15 (i) by striking ‘‘and title V of’’; and

16 (ii) by striking ‘‘and 950aa et seq.’’;

17 and

18 (B) by striking paragraph (3).

19 (c) NORTH AMERICAN FREE TRADE AGREEMENT IM20 PLEMENTATION ACT AMENDMENT.—Section 321(h)(2) of

21 the North American Free Trade Agreement Implementa22 tion Act (19 U.S.C. 3391(h)(2)) is amended by inserting

23 ‘‘(as in effect before the effective date of title II of the

24 Agricultural Regulatory Relief and Trade Act of 1996)’’

25 before the period.
76

•HR 2973 IH

1 (d) FOOD, AGRICULTURE, CONSERVATION, AND

2 TRADE ACT OF 1990 AMENDMENTS.—

3 (1) Section 2375(e) of the Food, Agriculture,

4 Conservation, and Trade Act of 1990 (7 U.S.C.

5 6613(e)) is amended by inserting ‘‘(as in effect be6 fore the effective date of title II)’’ before the comma.

7 (2) Effective 5 years after the effective date of

8 this title, section 2375 of the Food, Agriculture,

9 Conservation, and Trade Act of 1990 (7 U.S.C.

10 6613) is amended by striking subsection (e).

11 (e) COOPERATIVE FORESTRY ASSISTANCE ACT OF

12 1978 AMENDMENT.—Section 10(b)(3) of the Cooperative

13 Forestry Assistance Act of 1978 (7 U.S.C. 2106(b)(3))

14 is amended by striking ‘‘the first clause of section

15 306(a)(7)’’ and inserting ‘‘section 310C(a)(2)’’.

16 (f) THE ROBERT T. STAFFORD DISASTER RELIEF

17 AND EMERGENCY ASSISTANCE ACT AMENDMENT.—Sec18 tion 310(a) of The Robert T. Stafford Disaster Relief and

19 Emergency Assistance Act (42 U.S.C. 5153(a)) is amend20 ed by striking paragraph (4) and redesignating para21 graphs (5) through (7) as paragraphs (4) through (6), re22 spectively.

23 (g) COMMUNITY ECONOMIC DEVELOPMENT ACT OF

24 1981 AMENDMENTS.—Section 628 of the Community
77

•HR 2973 IH

1 Economic Development Act of 1981 (42 U.S.C. 9817) is

2 amended—

3 (1) by striking ‘‘, as amended’’ and all that fol4 lows through ‘‘1972’’ and inserting ‘‘and the Con5 solidated Farm and Rural Development Act’’; and

6 (2) by redesignating paragraph (3) as para7 graph (2).

8 (h) AGRICULTURAL ACT OF 1970 AMENDMENT.—

9 Section 901(b) of the Agricultural Act of 1970 (42 U.S.C.

10 3122(b)) is amended by striking ‘‘as defined in the private

11 business enterprise exception in section 306(a)(7) of the

12 Consolidated Farmers Home Administration Act of 1961,

13 as amended (7 U.S.C. 1926)’’ and inserting ‘‘(as defined

14 in section 703(c)(2)(A) of the Rural Development Act of

15 1972)’’.

16 (i) RURAL ELECTRIFICATION ACT OF 1936 AMEND17 MENTS.—

18 (1) Section 4 of the Rural Electrification Act of

19 1936 (7 U.S.C. 904) is amended—

20 (A) by inserting ‘‘(as in effect before the

21 effective date of title II of the Agricultural Reg22 ulatory Relief and Trade Act of 1996)’’ after

23 ‘‘3(d) and 3(e)’’; and

24 (B) by striking ‘‘and section 5’’.
78

•HR 2973 IH

1 (2) Section 7 of such Act (7 U.S.C. 907) is

2 amended by striking ‘‘authorized in section 3 of’’

3 and inserting ‘‘appropriated to carry out’’.

4 (3) Section 12 of such Act (7 U.S.C. 912) is

5 amended—

6 (A) in subsection (a)—

7 (i) by inserting ‘‘(as in effect before

8 the effective date of title II of the Agricul9 tural Regulatory Relief and Trade Act of

10 1996)’’ after ‘‘section 5’’; and

11 (ii) by inserting ‘‘(as in effect before

12 the effective date of title II of the Agricul13 tural Regulatory Relief and Trade Act of

14 1996)’’ before the period; and

15 (B) in subsection (b)(3)(D), by striking the

16 third sentence.

17 (4) Section 201 of such Act (7 U.S.C. 922) is

18 amended by striking ‘‘pursuant to section 3 of the

19 Rural Electrification Act of 1936, as amended,’’.

20 (5) Section 301(a) of such Act (7 U.S.C.

21 931(a)) is amended—

22 (A) in paragraph (2), by inserting ‘‘(as in

23 effect before the effective date of title II of the

24 Agricultural Regulatory Relief and Trade Act of

25 1996)’’ after ‘‘5’’; and
79

•HR 2973 IH

1 (B) in paragraph (3), by striking ‘‘notwith2 standing section 3(a) of title I,’’.

3 (6) Section 302 of such Act (7 U.S.C. 932) is

4 amended—

5 (A) in each of subsections (a) and (b)(1),

6 by inserting ‘‘(before the effective date of title

7 II of the Agricultural Regulatory Relief and

8 Trade Act of 1996)’’ after ‘‘5’’; and

9 (B) in subsection (b)(2), by striking ‘‘pur10 suant to section 3(a) of this Act’’ and inserting

11 ‘‘before the effective date of title II of the Agri12 cultural Regulatory Relief and Trade Act of

13 1996’’.

14 (7) Section 406(a) of such Act (7 U.S.C.

15 946(a)) is amended in the 2nd sentence by inserting

16 ‘‘(as in effect before the effective date of title II of

17 the Agricultural Regulatory Relief and Trade Act of

18 1996)’’ before the period.

19 SEC. 204. SAVINGS PROVISION.

20 This title and the amendments made by this title

21 shall not be construed to affect any obligation entered into

22 before the effective date of this title.

23 SEC. 205. EFFECTIVE DATE.

24 This title and the amendments made by this title

25 shall take effect on October 1, 1996.
80

•HR 2973 IH

1 TITLE III—CONSERVATION

2 SEC. 300. SHORT TITLE.

3 This title may be cited as the ‘‘Conservation Consoli4 dation and Regulatory Reform Act of 1996’’.

5 Subtitle A—Consolidation of Con6 servation Financial Assistance

7 Programs of the Department of

8 Agriculture

9 SEC. 301. PURPOSE OF SUBTITLE.

10 It is the purpose of this subtitle to consolidate into

11 a single program all current authorities of the Secretary

12 of Agriculture with respect to conservation programs

13 under which the Secretary contributes to the cost of con14 servation measures undertaken on private lands.

15 PART 1—AGRICULTURAL CONSERVATION

16 ASSISTANCE PROGRAM

17 SEC. 311. DEFINITIONS.

18 For purposes of this part:

19 (1) AGRICULTURAL CONSERVATION ASSISTANCE

20 PROGRAM.—The term ‘‘Agricultural Conservation

21 Assistance Program’’ means the program established

22 under section 312 to provide technical and financial

23 assistance to the owners and operators of private ag24 ricultural lands for conservation and improvement of

25 soil, water, and related natural resources.
81

•HR 2973 IH

1 (2) AGRICULTURAL COMMODITY.—The term

2 ‘‘agricultural commodity’’ means any annual or pe3 rennial crop (including forage or hay), aquaculture

4 product, nursery product, silviculture product, and

5 water-dependent crop (such as cranberries, taro, wa6 tercress, or rice).

7 (3) AGRICULTURAL LANDS.—The term ‘‘agri8 cultural lands’’ includes cropland, nonindustrial for9 est land, other lands used to produce or support the

10 production of an agricultural commodity, and such

11 other lands as the Secretary considers to be appro12 priate for inclusion.

13 (4) SECRETARY.—The term ‘‘Secretary’’ means

14 the Secretary of Agriculture.

15 (5) ELIGIBLE PRACTICE.—The term ‘‘eligible

16 practice’’ means the establishment of a terrace,

17 grassed waterway, contour grass strip, filterstrip,

18 shelterbelt, permanent wildlife habitat, site-specific

19 input management, or other activity that the Sec20 retary determines improves or protects soil, water,

21 and related natural resources.
82

•HR 2973 IH

1 SEC. 312. PROVISION OF TECHNICAL AND FINANCIAL AS2 SISTANCE FOR ELIGIBLE PRACTICES TO CON3 SERVE AND IMPROVE SOIL, WATER, AND RE4 LATED NATURAL RESOURCES.

5 (a) AGRICULTURAL CONSERVATION ASSISTANCE

6 PROGRAM.—Beginning with fiscal year 1997, the Sec7 retary of Agriculture shall carry out a program (to be

8 known as the ‘‘Agricultural Conservation Assistance Pro9 gram’’) to provide technical and financial assistance to the

10 owners and operators of private agricultural lands who re11 quest such assistance to plan, develop, and implement eli12 gible practices applicable to such lands and intended to

13 effectuate one or more of the following purposes:

14 (1) Control of erosion and sedimentation from

15 such lands.

16 (2) Conservation of water resources on such

17 lands and promotion of water conservation practices.

18 (3) Improvement of water quality in rural

19 America.

20 (4) Control of salinity resulting from the use of

21 such lands.

22 (5) Enhancement, restoration, or creation of

23 wetlands and riparian areas.

24 (6) Improvement in the production and utiliza25 tion of timber.

26 (7) Improvement of wildlife habitat.
83

•HR 2973 IH

1 (b) CONTRACTS.—Subject to subsection (c), the Sec2 retary shall provide technical and financial assistance

3 under the Agricultural Conservation Assistance Program

4 on the basis of a contract between the Secretary and an

5 owner or operator of agricultural lands. The Secretary

6 may not enter into a contract with an operator who is not

7 also owner of the agricultural lands unless the actual

8 owner of the lands concurs in the contract. The contract

9 shall describe the eligible practice for which the assistance

10 is being provided and specify the manner in which the eli11 gible practice will be carried out consistent with the cost12 share plan developed under section 313.

13 (c) PRIORITIZATION AND APPROVAL OF CON14 TRACTS.—

15 (1) APPROVAL BY COUNTY OR AREA COMMIT16 TEE.—Each contract under the Agricultural Con17 servation Assistance Program shall be subject to the

18 approval of the county or area committee established

19 under section 8(b)(5) of the Soil Conservation and

20 Domestic Allotment Act (16 U.S.C. 590h(b)(5)) for

21 the county or area within which the agricultural land

22 subject to the contract is located.

23 (2) PRIORITIZATION BY SECRETARY.—Before

24 contracts are considered for approval by a county or

25 area committee under paragraph (1), the Secretary
84

•HR 2973 IH

1 may evaluate and prioritize cost-share plans pre2 pared under section 313 for farms in the county or

3 area on the basis of the effectiveness of the plans in

4 meeting State and Federal environmental require5 ments. In conducting the evaluation, the Secretary

6 shall consider recommendations made by the Natu7 ral Recourses Conservation Service in conjunction

8 with State and local soil conservation districts. If the

9 Secretary conducts such an evaluation for a county

10 or area, the county or area committee shall first con11 sider for approval those contracts whose accompany12 ing cost-share plans are considered by the Secretary

13 to have a higher priority.

14 (d) TERM OF CONTRACT.—The term of a contract

15 under the Agricultural Conservation Assistance Program

16 may not exceed five years, except that the Secretary may

17 enter into a longer contract if the Secretary determines

18 that a longer contract term is essential to accomplish one

19 of the purposes specified in subsection (a).

20 (e) OWNER AND OPERATOR RESPONSIBILITIES.—

21 Under the terms of a contract under the Agricultural Con22 servation Assistance Program, the owner or operator en23 tering into the contract shall agree to comply with the

24 terms and conditions of the cost-share plan prepared by

25 the owner or operator under section 313.
85

•HR 2973 IH

1 SEC. 313. COST-SHARE PLANS.

2 (a) SUBMISSION OF COST-SHARE PLAN.—To be eligi3 ble to enter into a contract under the Agricultural Con4 servation Assistance Program, an owner or operator shall

5 prepare and submit to the Secretary of Agriculture a plan

6 of farming operations or land use practices that incor7 porates such soil and water conservation practices and

8 principles as may be determined by the Secretary to be

9 practicable to achieve the purposes for which the assist10 ance is provided.

11 (b) USE OF EXISTING PLANS.—For purposes of sat12 isfying the requirements of subsection (a), at the option

13 of the owner or operator, the owner or operator may rely

14 on a conservation plan developed pursuant to section 1212

15 of the Food Security Act of 1985 (16 U.S.C. 3812) or

16 any other conservation or natural resource plan required

17 for participation in any program within the jurisdiction

18 of the Secretary.

19 SEC. 314. FINANCIAL ASSISTANCE UNDER CONTRACT.

20 (a) DETERMINATION OF AMOUNT.—Subject to sub21 sections (b) and (c), the amount of financial assistance

22 that may be provided under a contract under the Agricul23 tural Conservation Assistance Program shall be such por24 tion of the cost of planning, developing, or implementing

25 the eligible practice described in the contract as the Sec26 retary of Agriculture determines to be necessary to achieve
86

•HR 2973 IH

1 the purposes for which the assistance is provided. In deter2 mining the level of assistance, the Secretary shall con3 sider—

4 (1) the amount of expected conservation or en5 vironmental benefit accruing to society;

6 (2) the total cost of carrying out the eligible

7 practice;

8 (3) the degree to which appropriate eligible

9 practices will be implemented in the absence of fi10 nancial assistance under the Agricultural Conserva11 tion Assistance Program; and

12 (4) in order to avoid duplication of assistance,

13 the degree to which the owner or operator benefits

14 from other public conservation programs.

15 (b) COST-SHARE REQUIREMENT.—The Federal

16 share of cost-sharing payments under a contract under the

17 Agricultural Conservation Assistance Program shall not

18 exceed 50 percent of the total cost of the eligible practice

19 covered by the contract, as determined by the Secretary.

20 However, the Secretary may exceed the percentage limita21 tion if the Secretary determines that a larger Federal

22 share is essential to accomplish one of the purposes speci23 fied in section 312(a), except that in no case may the Fed24 eral share exceed 75 percent.
87

•HR 2973 IH

1 (c) PER PERSON LIMITATION ON FINANCIAL ASSIST2 ANCE.—The total annual amount of payments to a person

3 under one or more contracts under the Agricultural Con4 servation Assistance Program may not exceed $5,000.

5 However, the Secretary may exceed the limitation on the

6 annual amount of payments on a case-by-case basis if the

7 Secretary determines that a larger payment is essential

8 to accomplish one of the purposes specified in section

9 312(a).

10 (d) TIME FOR PAYMENT.—In the case of multiyear

11 contract under the Agricultural Conservation Assistance

12 Program, the Secretary may make the entire Federal pay13 ment under the contract in the first year of the contract

14 to advance implementation of the eligible practice for

15 which the payment is being made. Payments may not be

16 made beyond the term of the contract.

17 (e) TREATMENT OF PAYMENTS.—Payments under

18 the Agricultural Conservation Assistance Program shall be

19 treated in the same manner as payments made under the

20 agricultural conservation program authorized by the Soil

21 Conservation and Domestic Allotment Act (16 U.S.C.

22 590a et seq.), as in effect on the day before the date of

23 the enactment of this Act.
88

•HR 2973 IH

1 SEC. 315. TERMINATION OF CONTRACTS.

2 (a) TERMINATION FOR VIOLATION.—The Secretary

3 may terminate a contract entered into with an owner or

4 operator under the Agricultural Conservation Assistance

5 Program if—

6 (1) the owner or operator agrees to such termi7 nation; or

8 (2) the owner or operator violates the terms

9 and conditions of the contract.

10 (b) VOLUNTARY MODIFICATION OR TERMINATION.—

11 An owner or operator of a livestock operation who enters

12 into a contract under the Agricultural Conservation As13 sistance Program may modify or terminate the contract

14 with the consent of the Secretary.

15 (c) REPAYMENT.—On the violation of a term or con16 dition of the contract under the Agricultural Conservation

17 Assistance Program at any time by the owner or operator,

18 the owner or operator shall refund any cost-sharing pay19 ment already received under section 314 and forfeit any

20 future payments under the contract. On the transfer of

21 the right and interest of an owner in land subject to the

22 contract, the owner shall refund all cost-sharing payments

23 received by the owner under the contract unless the trans24 feree of the right and interest agrees to assume all obliga25 tions of the owner under the contract.
89

•HR 2973 IH

1 SEC. 316. AUTHORIZATION OF APPROPRIATIONS; REGULA2 TIONS.

3 (a) AUTHORIZATION OF APPROPRIATIONS.—There

4 are authorized to be appropriated such sums as may be

5 necessary to carry out this part during each of the fiscal

6 years 1997 through 2002.

7 (b) FINAL REGULATIONS.—Not later than 120 days

8 after the date of the enactment of this Act, the Secretary

9 shall issue regulations to implement the Agricultural Con10 servation Assistance Program.

11 PART 2—CONFORMING AMENDMENTS

12 SEC. 321. REPEAL OF GREAT PLAINS CONSERVATION PRO13 GRAM.

14 (a) REPEAL.—Section 16 of the Soil Conservation

15 and Domestic Allotment Act (16 U.S.C. 590p) is repealed.

16 (b) CONFORMING AMENDMENTS.—(1) Section

17 1271(c)(3)(C) of the Food, Agriculture, Conservation, and

18 Trade Act of 1990 (16 U.S.C. 2106a(c)(3)(C)) is amended

19 by striking ‘‘and the Agricultural Conservation Program

20 established under section 16(b) of the Soil Conservation

21 and Domestic Allotment Act (16 U.S.C. 590p(b)),’’.

22 (2) Subparagraph (A) of section 1211(3) of the Food

23 Security Act of 1985 (16 U.S.C. 3811(3)) is amended to

24 read as follows:

25 ‘‘(A) a payment made pursuant to a con26 tract entered into under the Agricultural Con-
90

•HR 2973 IH

1 servation Assistance Program established under

2 section 312 of the Conservation Consolidation

3 and Regulatory Reform Act of 1996 or the

4 Water Quality Conservation Program estab5 lished under section 342 of such Act;’’.

6 SEC. 322. REPEAL OF CRITICAL LANDS RESOURCE CON7 SERVATION PROGRAM IN GREAT PLAINS

8 AREA.

9 Section 1511 of the Food and Agriculture Act of

10 1977 (16 U.S.C. 590q–3) is repealed.

11 SEC. 323. REPEAL OF AGRICULTURAL CONSERVATION PRO12 GRAM.

13 (a) REPEAL.—The Soil Conservation and Domestic

14 Allotment Act (16 U.S.C. 590a et seq.) is repealed, except

15 for sections 1, 2, 6, 8(b)(5), and 17(b) of such Act (16

16 U.S.C. 590a, 590b, 590f, 590h(b)(5), and 590q(b)).

17 (b) CONFORMING AMENDMENTS.—(1) Section 22(a)

18 of the Agricultural Adjustment Act (7 U.S.C. 624(a)), re19 enacted with amendments by the Agricultural Marketing

20 Agreement Act of 1937, is amended by striking ‘‘or the

21 Soil Conservation and Domestic Allotment Act, as amend22 ed,’’.

23 (2) Section 6(b) of the Department of Agriculture

24 Organic Act of 1956 (16 U.S.C. 590h–4) is repealed.
91

•HR 2973 IH

1 (3) Section 2 of the Act of December 20, 1944 (12

2 U.S.C. 1150a) is amended by striking ‘‘sections 7 to 17

3 of the Soil Conservation and Domestic Allotment Act;’’.

4 SEC. 324. MODIFICATION OF DEPARTMENT INVOLVEMENT

5 IN COLORADO RIVER BASIN SALINITY CON6 TROL PROGRAM.

7 Section 202(c) of the Colorado River Basin Salinity

8 Control Act (43 U.S.C. 1592(c)) is amended by striking

9 paragraph (1) and inserting the following:

10 ‘‘(1) The Secretary of Agriculture shall implement sa11 linity control measures, including watershed enhancement

12 and cost-sharing efforts with livestock and crop producers,

13 as part of the Agricultural Conservation Assistance Pro14 gram established under section 312 of the Conservation

15 Consolidation and Regulatory Reform Act of 1996.’’.

16 SEC. 325. REPEAL OF RURAL ENVIRONMENTAL CONSERVA17 TION PROGRAM.

18 Title X of the Agricultural Act of 1970 (16 U.S.C.

19 1501 et seq.) is repealed.

20 SEC. 326. REPEAL OF WATER QUALITY INCENTIVE

21 PROJECTS.

22 (a) REPEAL.—Chapter 2 of subtitle D of title XII

23 of the Food Security Act of 1985 (16 U.S.C. 3838–

24 3838F) is repealed.
92

•HR 2973 IH

1 (b) CONFORMING AMENDMENTS.—Such title is fur2 ther amended—

3 (1) in section 1211(3) (16 U.S.C. 3811(3)), by

4 striking subparagraph (D);

5 (2) in section 1231(b)(4)(A) (16 U.S.C.

6 3831(b)(4)(A)), by striking ‘‘the water quality incen7 tives program established under chapter 2’’ and in8 serting ‘‘a contract entered into under the Agricul9 tural Conservation Assistance Program established

10 under section 312 of the Conservation Consolidation

11 and Regulatory Reform Act of 1996’’; and

12 (3) in section 1245 (16 U.S.C. 3845)—

13 (A) in subsection (a), by striking ‘‘chapters

14 1 and 2 of subtitle D.’’ and the second sentence

15 and inserting ‘‘chapter 1 of subtitle D.’’; and

16 (B) in subsection (b), by striking ‘‘chapters

17 1 and 2 of subtitle D’’ and inserting ‘‘chapter

18 1 of subtitle D’’.

19 SEC. 327. REPEAL OF TREE PLANTING INITIATIVE.

20 Section 1256 of the Food Security Act of 1985 (Pub21 lic Law 99–198; 16 U.S.C. 2101 note) is repealed.

22 SEC. 328. REPEAL OF INTEGRATED FARM MANAGEMENT

23 PROGRAM OPTION.

24 Section 1451 of the Food, Agriculture, Conservation,

25 and Trade Act of 1990 (7 U.S.C. 5822) is repealed.
93

•HR 2973 IH

1 SEC. 329. REPEAL OF SPECIAL AREAS CONSERVATION PRO2 GRAM AND RESERVOIR SEDIMENTATION

3 PROGRAM.

4 Subtitles A, B, and F and section 1552 of title XV

5 of the Agriculture and Food Act of 1981 (16 U.S.C.

6 3401–3420, 3441–3445, 3471) are repealed.

7 SEC. 330. REPEAL OF SMALL WATERSHED EASEMENT PUR8 CHASE AUTHORITY.

9 Section 3A of the Watershed Protection and Flood

10 Prevention Act (16 U.S.C. 1003a) is repealed.

11 SEC. 331. REPEAL OF FINANCIAL ASSISTANCE PROGRAMS

12 UNDER COOPERATIVE FORESTRY ASSIST13 ANCE ACT OF 1978.

14 (a) REPEALS.—Sections 4, 6, and 7 of the Coopera15 tive Forestry Assistance Act of 1978 (16 U.S.C. 2103,

16 2103b, 2103c) are repealed.

17 (b) CONFORMING AMENDMENTS.—The Cooperative

18 Forestry Assistance Act of 1978 is further amended—

19 (1) in section 12(a) (16 U.S.C. 2108(a)), by

20 striking ‘‘money appropriated under section 4 of this

21 Act or’’; and

22 (2) in section 19(b)(2) (16 U.S.C.

23 2113(b)(2))—

24 (A) by inserting ‘‘and’’ after the semicolon

25 in subparagraph (B);
94

•HR 2973 IH

1 (B) by striking ‘‘; and’’ at the end of sub2 paragraph (C) and inserting a period; and

3 (C) by striking subparagraph (D).

4 SEC. 332. REPEAL OF WATER BANK ACT.

5 The Water Bank Act (16 U.S.C. 1301–1311) is re6 pealed.

7 SEC. 333. EFFECTIVE DATE OF REPEALS.

8 (a) EFFECTIVE DATE.—The amendments made by

9 this part shall take effect on September 30, 1996.

10 (b) EFFECT OF REPEAL.—The amendments made by

11 this part shall not affect the validity of any contract or

12 agreement, or the terms and conditions of such a contract

13 or agreement, entered into before the effective date of the

14 amendments under a provision of law repealed by this

15 part.

16 Subtitle B—Water Quality Con17 servation Program for Livestock

18 Operations

19 SEC. 341. PURPOSE OF SUBTITLE AND DEFINITIONS.

20 (a) PURPOSE.—It is the purpose of this subtitle to

21 establish a program under section 342 that, in a manner

22 maximizing environmental benefits per dollar expended,

23 provides to the owners and operators of livestock oper24 ations—
95

•HR 2973 IH

1 (1) flexible technical and financial assistance to

2 address the most serious threats to water quality;

3 (2) assistance in complying with title XII of the

4 Food Security Act of 1985 (16 U.S.C. 3801 et seq.)

5 and Federal and State environmental laws, and to

6 encourage environmental enhancement; and

7 (3) a consolidated and simplified conservation

8 planning process to reduce administrative burdens

9 on the owners and operators of livestock operations.

10 (b) DEFINITIONS.—For purposes of this subtitle:

11 (1) LIVESTOCK WATER QUALITY CONSERVATION

12 PROGRAM.—The term ‘‘Livestock Water Quality

13 Conservation Program’’ means the program estab14 lished under section 342 to provide technical and fi15 nancial assistance to the owners and operators of

16 livestock operations to protect or improve water

17 quality and enhance environmental protection.

18 (2) LIVESTOCK.—The term ‘‘livestock’’ means

19 dairy or beef cattle, laying hens, broilers, turkeys,

20 swine, sheep, lambs, and such other animals as the

21 Secretary of Agriculture considers appropriate.

22 (3) LIVESTOCK OPERATION.—The term ‘‘live23 stock operation’’ means a farm, ranch, or other fa24 cility used for the purpose of livestock production.
96

•HR 2973 IH

1 (4) SECRETARY.—The term ‘‘Secretary’’ means

2 the Secretary of Agriculture.

3 (5) ELIGIBLE PRACTICE.—The term ‘‘eligible

4 practice’’ means the establishment of an animal

5 waste management facility, terrace, grassed water6 way, contour grass strip, filterstrip, permanent wild7 life habitat, or other activity that the Secretary de8 termines improves or protects water quality in a cost

9 effective manner.

10 SEC. 342. PROVISION OF TECHNICAL AND FINANCIAL AS11 SISTANCE FOR WATER QUALITY CONSERVA12 TION FOR LIVESTOCK OPERATIONS.

13 (a) LIVESTOCK WATER QUALITY CONSERVATION

14 PROGRAM.—During fiscal years 1996 through 2002, the

15 Secretary of Agriculture shall carry out a program (to be

16 known as the ‘‘Livestock Water Quality Conservation Pro17 gram’’) to provide technical and financial assistance to the

18 owners and operators of livestock operations who request

19 such assistance to plan, develop, and implement eligible

20 practices in connection with such livestock operations in21 tended to protect or improve water quality and enhance

22 environmental protection.

23 (b) CONTRACTS.—Subject to subsection (e), the Sec24 retary shall provide assistance under the Livestock Water

25 Quality Conservation Program on the basis of a contract
97

•HR 2973 IH

1 between the Secretary and an owner or operator of a live2 stock operation. The Secretary may not enter into a con3 tract with an operator who is not also owner of the live4 stock operation unless the actual owner concurs in the

5 contract.

6 (c) TYPES OF ASSISTANCE.—Under a contract en7 tered into under subsection (b), the Secretary may provide

8 the owner or operator of a livestock operation who imple9 ments a eligible practice with technical assistance and

10 cost-sharing payments.

11 (d) APPLICATION AND TERM.—A contract entered

12 into under subsection (b) may apply to one or more eligible

13 practices. The contract shall have a term of not more than

14 10 years, as determined appropriate by the Secretary

15 based on the eligible practice or practices that are the

16 basis of the contract.

17 (e) APPROVAL BY COUNTY OR AREA COMMITTEE.—

18 Each contract under subsection (b) shall be subject to the

19 approval of the county or area committee established

20 under section 8(b)(5) of the Soil Conservation and Domes21 tic Allotment Act (16 U.S.C. 590h(b)(5)) for the county

22 or area within which the livestock operation subject to the

23 contract is located. In considering contracts for approval,

24 the county or area committee shall first consider for ap-
98

•HR 2973 IH

1 proval those contracts that are given a higher priority by

2 the Secretary under section 344.

3 SEC. 343. ASSISTANCE UNDER CONTRACT.

4 (a) COST-SHARING PAYMENTS.—The Federal share

5 of cost-sharing payments under a contract under the Live6 stock Water Quality Conservation Program to implement

7 one or more eligible practices shall not exceed 75 percent

8 of the total cost of the practice or practices, as determined

9 by the Secretary of Agriculture. The Secretary may fur10 ther reduce the Federal share on account of payments re11 ceived by the owner or operator from a State or local gov12 ernment for the same eligible practice.

13 (b) TECHNICAL ASSISTANCE.—

14 (1) FUNDING.—The Secretary shall allocate

15 funding under this subtitle for the provision of tech16 nical assistance according to the purpose and pro17 jected cost for which the technical assistance is pro18 vided in a fiscal year. The allocated amount may

19 vary according to the type of expertise required,

20 quantity of time involved, and other factors as deter21 mined appropriate by the Secretary. Funding shall

22 not exceed the projected cost to the Secretary of the

23 technical assistance provided in a fiscal year.

24 (2) OTHER AUTHORITIES.—The receipt of tech25 nical assistance under this subtitle shall not affect
99

•HR 2973 IH

1 the eligibility of an owner or operator of a livestock

2 operation to receive technical assistance under other

3 authorities of law available to the Secretary.

4 (c) NON-FEDERAL ASSISTANCE.—The Secretary may

5 request the services of a State water quality agency, State

6 fish and wildlife agency, State forestry agency, or any

7 other governmental or private resource considered appro8 priate to assist in providing the technical assistance nec9 essary for the development and implementation of an eligi10 ble practice.

11 (d) LIMITATIONS ON PAYMENTS.—The total amount

12 of cost-sharing payments made to a person under the

13 Livestock Water Quality Conservation Program may not

14 exceed—

15 (1) $10,000 for any fiscal year; or

16 (2) $50,000 for any multiyear contract.

17 (e) TREATMENT OF PAYMENTS.—Payments under

18 the Livestock Water Quality Conservation Program shall

19 be treated in the same manner as payments made under

20 the agricultural conservation program authorized by the

21 Soil Conservation and Domestic Allotment Act (16 U.S.C.

22 590a et seq.), as in effect on the day before the date of

23 the enactment of this Act.
100

•HR 2973 IH

1 SEC. 344. PRIORITIES IN EVALUATION OF CONTRACT OF2 FERS.

3 In evaluating contract offers under the Livestock

4 Water Quality Conservation Program, the Secretary of

5 Agriculture shall accord a higher priority to eligible prac6 tices for lands on which livestock production has been de7 termined to contribute to, or create, the potential for fail8 ure to meet applicable water quality standards or other

9 environmental objectives of a Federal or State law. In

10 evaluating the contract offers, and the accompanying

11 water quality plan prepared under section 345, the Sec12 retary shall consider recommendations made by the Natu13 ral Recourses Conservation Service in conjunction with

14 State and local soil conservation districts.

15 SEC. 345. WATER QUALITY PLANS.

16 (a) WATER QUALITY PLAN REQUIRED.—To be eligi17 ble to enter into a contract under the Livestock Water

18 Quality Conservation Program, an owner or operator of

19 a livestock operation shall prepare and submit to the Sec20 retary of Agriculture a plan of livestock operations that

21 incorporates such water quality conservation practices and

22 principles as may be determined by the Secretary to be

23 practicable to achieve the purposes for which the assist24 ance is provided.

25 (b) USE OF EXISTING PLANS.—For purposes of sat26 isfying the requirements of subsection (a), at the option
101

•HR 2973 IH

1 of the owner or operator, the owner or operator may rely

2 on a conservation plan developed pursuant to section 1212

3 of the Food Security Act of 1985 (16 U.S.C. 3812) or

4 any other conservation or natural resource plan required

5 for participation in any program within the jurisdiction

6 of the Secretary.

7 SEC. 346. MODIFICATION AND TERMINATION OF CON8 TRACTS.

9 (a) TERMINATION FOR VIOLATION.—The Secretary

10 of Agriculture may terminate a contract entered into with

11 an owner or operator of a livestock operation under the

12 Livestock Water Quality Conservation Program if the

13 owner or operator violates the terms and conditions of the

14 contract.

15 (b) VOLUNTARY MODIFICATION OR TERMINATION.—

16 An owner or operator of a livestock operation who enters

17 into a contract under the Livestock Water Quality Con18 servation Program may modify or terminate the contract

19 with the consent of the Secretary.

20 (c) REPAYMENT.—On the violation of a term or con21 dition of the contract under the Livestock Water Quality

22 Conservation Program at any time by the owner or opera23 tor of a livestock operation, the owner or operator shall

24 refund any financial assistance received under section 344

25 and forfeit any future payments under the contract. On
102

•HR 2973 IH

1 the transfer of the right and interest of an owner in land

2 subject to the contract, the owner shall refund all financial

3 assistance received by the owner under the contract unless

4 the transferee of the right and interest agrees to assume

5 all obligations of the owner under the contract.

6 SEC. 347. USE OF FUNDS OF COMMODITY CREDIT COR7 PORATION.

8 Notwithstanding any other law, the Secretary of Ag9 riculture shall allocate $380,000,000 of the funds of the

10 Commodity Credit Corporation for the seven-fiscal year

11 period beginning on October 1, 1995, to carry out the

12 Livestock Water Quality Conservation Program.

13 SEC. 348. REGULATIONS.

14 Not later than 180 days after the date of the enact15 ment of this Act, the Secretary of Agriculture shall issue

16 regulations to implement the Livestock Water Quality

17 Conservation Program.

18 Subtitle C—Highly Erodible

19 Cropland Conservation

20 SEC. 351. DEFINITIONS APPLICABLE TO HIGHLY ERODIBLE

21 CROPLAND CONSERVATION.

22 (a) CONSERVATION PLAN AND CONSERVATION SYS23 TEM.—Section 1201(a) of the Food Security Act of 1985

24 (16 U.S.C. 3801(a)) is amended—
103

•HR 2973 IH

1 (1) by redesignating paragraphs (2) through

2 (16) as paragraphs (4) through (18), respectively;

3 and

4 (2) by inserting after paragraph (1) the follow5 ing new paragraphs:

6 ‘‘(2) CONSERVATION PLAN.—The term ‘con7 servation plan’ means the document that—

8 ‘‘(A) applies to highly erodible cropland;

9 ‘‘(B) implements the conservation system

10 applicable to such highly erodible cropland and

11 contains the decisions of the person with re12 spect to location, land use, tillage systems, and

13 conservation treatment measures and schedule;

14 and

15 ‘‘(C) is approved by the local soil conserva16 tion district, in consultation with the local com17 mittees established under section 8(b)(5) of the

18 Soil Conservation and Domestic Allotment Act

19 (16 U.S.C. 590h(b)(5)) and the Secretary, or

20 by the Secretary.

21 ‘‘(3) CONSERVATION SYSTEM.—The term ‘con22 servation system’ means a combination of one or

23 more conservation measures or management prac24 tices that—
104

•HR 2973 IH

1 ‘‘(A) are based upon local resource condi2 tions, available conservation technology, and the

3 standards and guidelines contained in the Natu4 ral Resources Conservation Service field office

5 technical guides; and

6 ‘‘(B) are designed to achieve, in a cost ef7 fective and technically practicable manner, a

8 substantial reduction in soil erosion or a sub9 stantial improvement in soil conditions on a

10 field or group of fields containing highly erod11 ible cropland when compared to the level of ero12 sion or soil conditions that existed before the

13 application of the conservation measures and

14 management practices.’’.

15 (b) FIELD.—Paragraph (7) of such section, as redes16 ignated by subsection (a)(1), is amended to read as fol17 lows:

18 ‘‘(7) FIELD.—The term ‘field’ means a part of

19 a farm which is separated from the balance of the

20 farm by permanent boundaries such as fences,

21 roads, permanent waterways, or other similar fea22 tures. At the option of the owner or operator of the

23 farm, croplines may also be used to delineate a field

24 if farming practices make it probable that such

25 croplines are not subject to change. Any highly erod-
105

•HR 2973 IH

1 ible land on which an agricultural commodity is pro2 duced after December 23, 1985, and that is not ex3 empt under section 1212 shall be considered as part

4 of the field in which such land was included on De5 cember 23, 1985, unless the Secretary permits modi6 fication of the boundaries of the field to carry out

7 this title.’’.

8 (c) HIGHLY ERODIBLE LAND.—Paragraph (9) of

9 such section, as redesignated by subsection (a)(1), is

10 amended by adding at the end the following new subpara11 graph:

12 ‘‘(C) Not later than 60 days after the date of

13 the enactment of this subparagraph, the Secretary

14 shall publish in the Federal Register the universal

15 soil loss equation and wind erosion equation used by

16 the Department of Agriculture as of that date. The

17 Secretary may not change such equations after that

18 date except following notice and comment in a man19 ner consistent with section 553 of title 5, United

20 States Code.’’.

21 (d) CONFORMING AMENDMENTS.—Section 1212 of

22 such Act (16 U.S.C. 3812) is amended—

23 (1) in subsection (a)(2), by striking ‘‘that docu24 ments the decisions of the person with respect to lo25 cation, land use, tillage systems, and conservation
106

•HR 2973 IH

1 treatment measures and schedule and that is based

2 on the local Soil Conservation Service technical

3 guide and approved by the local soil conservation

4 district, in consultation with the local committees es5 tablished under section 8(b)(5) of the Soil Conserva6 tion and Domestic Allotment Act (16 U.S.C.

7 590h(b)(5)) and the Secretary, or by the Secretary’’;

8 (2) in subsection (c)(3), by striking ‘‘based on

9 the local Soil Conservation Service technical guide

10 and approved by the local soil conservation district,

11 in consultation with the local committees established

12 under section 8(b)(5) of the Soil Conservation and

13 Domestic Allotment Act (16 U.S.C. 590h(b)(5)) and

14 the Secretary’’;

15 (3) in subsection (e)(1)(A), by striking ‘‘con16 servation compliance plan’’ and inserting ‘‘conserva17 tion plan’’;

18 (4) in subsection (f)(1), by striking ‘‘that docu19 ments the decisions of such person with respect to

20 location, land use, tillage systems, and conservation

21 treatment measures and schedules prepared under

22 subsection (a)’’;

23 (5) in subsection (f)(3), by striking ‘‘prepared

24 under subsection (a)’’; and
107

•HR 2973 IH

1 (6) in subsection (f)(4), by striking ‘‘that docu2 ments the decisions of such person with respect to

3 location, land use, tillage systems, and conservation

4 treatment measures and schedules prepared under

5 subsection (a)’’.

6 SEC. 352. DEVELOPMENT AND IMPLEMENTATION OF CON7 SERVATION PLANS AND CONSERVATION SYS8 TEMS.

9 (a) DEVELOPMENT AND IMPLEMENTATION.—The

10 Food Security Act of 1985 is amended—

11 (1) by redesignating section 1213 (16 U.S.C.

12 3813) as section 1214; and

13 (2) by inserting after section 1212 (16 U.S.C.

14 3812) the following new section:

15 ‘‘SEC. 1213. DEVELOPMENT AND IMPLEMENTATION OF CON16 SERVATION PLANS AND CONSERVATION SYS17 TEMS.

18 ‘‘(a) TECHNICAL REQUIREMENTS.—In connection

19 with the standards and guidelines contained in Natural

20 Resources Conservation Service field office technical

21 guides applicable to the development and use of conserva22 tion measures and management practices as part of a con23 servation system, the Secretary shall ensure that such

24 standards and guidelines permit a person to use a con25 servation system that—
108

•HR 2973 IH

1 ‘‘(1) is technically and economically feasible;

2 ‘‘(2) is based on local resource conditions and

3 available conservation technology;

4 ‘‘(3) is cost-effective; and

5 ‘‘(4) does not cause undue economic hardship

6 on the person applying the conservation system

7 under the person’s conservation plan.

8 ‘‘(b) MEASUREMENT OF EROSION REDUCTION.—For

9 the purpose of determining whether there is a substantial

10 reduction in soil erosion on a field containing highly erod11 ible cropland, the measurement of erosion reduction

12 achieved by the application of a conservation system under

13 a person’s conservation plan shall be based upon the level

14 of erosion at the time of the measurement compared to

15 the level of erosion that existed before the implementation

16 of the conservation measures and management practices

17 provided for in the conservation system.

18 ‘‘(c) RESIDUE MEASUREMENT.—

19 ‘‘(1) RESPONSIBILITIES OF THE SECRETARY.—

20 For the purpose of measuring the level of residue on

21 a field, the Secretary shall—

22 ‘‘(A) take into account any residue incor23 porated into the top two inches of soil, as well

24 as the growing crop, in such measurement; and
109

•HR 2973 IH

1 ‘‘(B) provide for the acceptance and use of

2 information and data voluntarily provided by

3 the producer regarding the field.

4 ‘‘(2) ACCEPTANCE OF PRODUCER MEASURE5 MENTS.—Annual residue measurements supplied by

6 a producer, and certified by a third person approved

7 by the Secretary, shall be used by the Secretary if

8 such measurements indicate that, on the basis of a

9 five-year average, the residue level for the field

10 meets the level required in the conservation plan.

11 ‘‘(d) CERTIFICATION OF COMPLIANCE.—

12 ‘‘(1) IN GENERAL.—For the purpose of deter13 mining the eligibility of a person for program bene14 fits specified in section 1211 at the time application

15 is made for such benefits, the Secretary shall permit

16 the person to certify that the person is complying

17 with the person’s conservation plan.

18 ‘‘(2) STATUS REVIEWS.—If a person makes a

19 certification under paragraph (1), the Secretary

20 shall not be required to carry out a review of the

21 status of compliance of the person with the con22 servation plan under which such conservation system

23 is being applied.

24 ‘‘(3) REVISIONS AND MODIFICATIONS.—The

25 Secretary shall permit a person who makes a certifi-
110

•HR 2973 IH

1 cation under paragraph (1) with respect to a con2 servation plan to revise the conservation plan in any

3 manner, so long as the same level of conservation

4 treatment provided for by the conservation system

5 under the person’s conservation plan is maintained.

6 The Secretary may not revise the person’s conserva7 tion plan without the concurrence of the person.

8 ‘‘(e) TECHNICAL ASSISTANCE.—The Secretary shall

9 provide technical assistance to a person throughout the de10 velopment, revision, and application of the conservation

11 plan and any conservation system of the person. At the

12 request of the person, the Secretary may provide technical

13 assistance regarding conservation measures and manage14 ment practices for other lands of the person that do not

15 contain highly erodible cropland.

16 ‘‘(f) ENCOURAGEMENT OF ON-FARM RESEARCH.—In

17 order to encourage on-farm conservation research, the

18 Secretary shall allow a person to include in the person’s

19 conservation plan or a conservation system under the plan,

20 on a field trial basis, practices that are not currently ap21 proved but that the Secretary considers have a reasonable

22 likelihood of success.’’.

23 (b) TREATMENT OF TECHNICAL DETERMINA24 TIONS.—Section 226(d)(1) of the Department of Agri25 culture Reorganization Act of 1994 (7 U.S.C. 6932(d)(1))
111

•HR 2973 IH

1 is amended by adding at the end the following new sen2 tence: ‘‘In the case of a technical determination of the

3 Natural Resources Conservation Service regarding use of

4 a conservation system under subtitle B of title XII of the

5 Food Security Act of 1985 (16 U.S.C. 3811 et seq.), the

6 Consolidated Farm Service Agency may overrule the de7 termination if the Agency determines that strict applica8 tion of the determination causes undue economic hardship

9 on the person using the conservation system.’’.

10 (c) PROVISION OF TECHNICAL ASSISTANCE BY

11 OTHER SOURCES.—Section 1243 of the Food Security Act

12 for 1985 (16 U.S.C. 3843) is amended by adding at the

13 end the following new subsection:

14 ‘‘(g) In the preparation and application of a conserva15 tion compliance plan under subtitle B or similar plan re16 quired as a condition for assistance from the Department

17 of Agriculture, the Secretary shall permit persons to se18 cure technical assistance from approved sources, as deter19 mined by the Secretary, other than the Natural Resources

20 Conservation Service. If the Secretary rejects a technical

21 determination made by such a source, the basis of Sec22 retary’s determination must be supported by clear and

23 convincing evidence.’’.
112

•HR 2973 IH

1 SEC. 353. EXPEDITED PROCEDURES FOR GRANTING

2 VARIANCES FROM CONSERVATION PLANS.

3 Section 1212(f) of the Food Security Act of 1985 (16

4 U.S.C. 3812(f)(4)) is amended—

5 (1) in paragraph (4)(C), by striking ‘‘problem’’

6 and inserting ‘‘problem, including pest and disease

7 problems’’; and

8 (2) by adding at the end the following new

9 paragraph:

10 ‘‘(5) After consultation with local conservation

11 districts, the Secretary shall establish expedited pro12 cedures for the consideration and granting of tem13 porary variances under paragraph (4)(C). If the re14 quest for a temporary variance under such para15 graph involves the use of practices or measures to

16 control pests or disease problems, the Secretary shall

17 make a decision on whether to grant the variance

18 within 30 days of receiving the request. If the Sec19 retary fails to render a decision within that time pe20 riod, the temporary variance shall be deemed to have

21 been granted.’’.

22 SEC. 354. GOOD FAITH EXEMPTION.

23 (a) GRACE PERIOD TO RESUME CONSERVATION

24 COMPLIANCE.—Paragraph (1) of section 1212(f) of the

25 Food Security Act of 1985 (16 U.S.C. 3812(f)) is amend26 ed—
113

•HR 2973 IH

1 (1) by striking ‘‘Except to the extent provided

2 in paragraph (2), no’’ and inserting ‘‘No’’; and

3 (2) by striking ‘‘such person has—’’ and all

4 that follows through the period at the end of sub5 paragraph (B) and inserting the following: ‘‘such

6 person has acted in good faith and without the in7 tent to violate the provisions of this subtitle. A per8 son who meets the requirements of this paragraph

9 shall be allowed a period of one year in which to im10 plement the measures and practices necessary to be

11 considered to be actively applying the person’s con12 servation plan.’’.

13 (b) SPECIAL PENALTIES REGARDING CERTAIN

14 HIGHLY ERODIBLE CROPLAND.—Paragraph (2) of such

15 section is amended by striking ‘‘meets the requirements

16 of paragraph (1)’’ and inserting ‘‘with respect to highly

17 erodible cropland that was not in production prior to De18 cember 23, 1985, has acted in good faith and without the

19 intent to violate such provisions’’.

20 (c) CONFORMING AMENDMENT.—Paragraph (4) of

21 such section is amended by striking the last sentence.

22 SEC. 355. CONSERVATION RESERVE LANDS.

23 Section 1212(a)(3) of the Food Security Act of 1985

24 (16 U.S.C. 3812(a)(3)) is amended by striking ‘‘shall, if

25 the conservation plan established under this subtitle for
114

•HR 2973 IH

1 such land requires structures to be constructed,’’ and in2 serting ‘‘shall only be required to apply a conservation

3 plan established under this subtitle. The person shall not

4 be required to meet a higher conservation standard than

5 the standard applied to other highly erodible cropland lo6 cated within the same area. If the person’s conservation

7 plan requires structures to be constructed, the person

8 shall’’.

9 SEC. 356. INVESTIGATION OF POSSIBLE COMPLIANCE DEFI10 CIENCIES.

11 Subtitle B of title XII of the Food Security Act of

12 1985 is amended by adding at the end the following new

13 section:

14 ‘‘SEC. 1215. NOTICE AND INVESTIGATION OF POSSIBLE

15 COMPLIANCE DEFICIENCIES.

16 ‘‘(a) SPECIAL RULE DURING PROVISION OF ON-SITE

17 TECHNICAL ASSISTANCE.—Employees of the Department

18 of Agriculture who observe possible compliance defi19 ciencies or other potential violations of a conservation plan

20 or provision of this subtitle while providing on-site tech21 nical assistance shall provide to the responsible persons,

22 within 45 days, information regarding those actions need23 ed in order to come into compliance. The employees shall

24 provide this information in lieu of reporting the observa25 tions as compliance violations. The person shall attempt
115

•HR 2973 IH

1 to correct such deficiencies as soon as practicable. If such

2 corrective action is not fully implemented within 1 year,

3 a review of the status of compliance of the person with

4 the conservation plan may then be conducted.

5 ‘‘(b) NOTICE OF POSSIBLE VIOLATIONS.—Any inter6 ested person (other than an employee of an agency of the

7 Department of Agriculture administering this Act) may

8 file, in accordance with rules prescribed by the Secretary,

9 a written complaint of possible compliance deficiencies or

10 other potential violations of a conservation plan or provi11 sion of this subtitle. The identity of any person filing a

12 complaint under this subsection shall be considered to be

13 confidential information. The identity of such person, and

14 any portion of the complaint to the extent that it would

15 indicate the identity of such person, are specifically ex16 empt from disclosure under section 552 of title 5, United

17 States Code (commonly known as the Freedom of Infor18 mation Act), as provided in subsection (b)(3) of such sec19 tion. The Secretary is not required to take action on com20 plaints or allegations that are anonymous or are not sub21 mitted in writing.

22 ‘‘(c) INVESTIGATION OF COMPLAINTS.—

23 ‘‘(1) COMMENCING OR EXPANDING AN INVES24 TIGATION.—If there appears to be, in the opinion of

25 the Secretary, reasonable grounds for investigating a
116

•HR 2973 IH

1 complaint or allegation made under subsection (b),

2 the Secretary may commence an investigation of the

3 alleged violation of a conservation plan or provision

4 of this subtitle specified in the complaint or allega5 tion. In the course of the investigation, if the Sec6 retary determines that violations are indicated other

7 than the alleged violations specified in the complaint

8 or allegation, the Secretary may expand the inves9 tigation to include such additional violations.

10 ‘‘(2) ISSUANCE OF FORMAL COMPLAINT BY SEC11 RETARY; PROCESS.—In the opinion of the Secretary,

12 if an investigation under this subsection substan13 tiates the existence of violations of a conservation

14 plan or provision of this subtitle, the Secretary may

15 cause a formal complaint to be issued. The Sec16 retary shall have the complaint served by registered

17 mail or certified mail or otherwise on the person

18 concerned and afford such person an opportunity for

19 a hearing on the complaint.

20 ‘‘(d) NOTIFICATION REQUIREMENTS REGARDING

21 SUBJECT OF COMPLAINT.—Whenever the Secretary initi22 ates an investigation on the basis of a complaint or allega23 tion made under subsection (b) or expands such an inves24 tigation, the Secretary shall promptly notify the subject

25 of the investigation of the existence of the investigation
117

•HR 2973 IH

1 and the nature of the alleged violations of this subtitle

2 to be investigated. Not later than 180 days after providing

3 the initial notification, the Secretary shall provide the sub4 ject of the investigation with notice of the status of the

5 investigation, including whether the Secretary intends to

6 issue a complaint under subsection (c)(2), terminate the

7 investigation, or continue or expand the investigation. The

8 Secretary shall provide additional status reports at the re9 quest of the subject of the investigation and shall promptly

10 notify the subject of the investigation whenever the Sec11 retary terminates the investigation.’’.

12 SEC. 357. EXPIRATION OF AUTHORITY.

13 Subtitle B of title XII of the Food Security Act of

14 1985 is amended by inserting after section 1215, as added

15 by section 407, the following new section:

16 ‘‘SEC. 1216. EXPIRATION OF SUBTITLE.

17 ‘‘The authorities and requirements contained in this

18 subtitle shall not apply after December 31, 2002, and any

19 program ineligibility in effect under section 1211 as of

20 that date shall expire on that date.’’.
118

•HR 2973 IH

1 Subtitle D—Environmental Con2 servation Acreage Reserve Pro3 gram

4 SEC. 361. WETLANDS RESERVE PROGRAM.

5 (a) ENROLLMENT.—Section 1237 of the Food Secu6 rity Act of 1985 (16 U.S.C. 3837) is amended by striking

7 subsection (b) and inserting the following:

8 ‘‘(b) ENROLLMENT CONDITIONS.—

9 ‘‘(1) MAXIMUM ENROLLMENT.—The total num10 ber of acres enrolled in the wetlands reserve pro11 gram shall not exceed 975,000 acres.

12 ‘‘(2) METHODS OF ENROLLMENT.—The Sec13 retary shall ensure, to the maximum extent prac14 ticable, that of the total number of acres enrolled in

15 the wetlands reserve program—

16 ‘‘(A) one-third of the acres are enrolled

17 through the use of permanent easements;

18 ‘‘(B) one-third of the acres are enrolled

19 through the use of 30-year easements (or ease20 ments of a shorter period if required under ap21 plicable State laws); and

22 ‘‘(C) one-third of the acres are enrolled

23 through the use of restoration cost-share agree24 ments authorized under section 1237A(h).’’.
119

•HR 2973 IH

1 ‘‘(3) TEMPORARY EMPHASIS ON CERTAIN EN2 ROLLMENT METHODS.—To achieve the enrollment

3 ratios specified in paragraph (2), the Secretary shall

4 endeavor, to the maximum extent practicable, to rely

5 on the enrollment methods described in subpara6 graphs (B) and (C) of paragraph (2) to enroll lands

7 in the wetlands reserve program until such time as

8 enrollments under each such subparagraph accounts

9 for approximately one-third of all lands enrolled in

10 the wetlands reserve.’’

11 (b) ELIGIBILITY.—Section 1237(c) of the Food Secu12 rity Act of 1985 (16 U.S.C. 3837(c)) is amended by strik13 ing ‘‘2000’’ and inserting ‘‘2002’’.

14 (c) EASEMENTS AND RESTORATION COST-SHARE

15 AGREEMENTS.—Section 1237A of the Food Security Act

16 of 1985 (16 U.S.C. 3837a) is amended—

17 (1) in the section heading, by inserting before

18 the period at the end the following: ‘‘AND RES19 TORATION COST-SHARE AGREEMENTS’’;

20 (2) by striking subsection (c) and inserting the

21 following:

22 ‘‘(c) RESTORATION PLANS.—The development of a

23 restoration plan, including any compatible use, under this

24 section shall be made through the local Natural Resources

25 Conservation Service representative.’’;
120

•HR 2973 IH

1 (3) in subsection (f), by striking the third sen2 tence and inserting the following: ‘‘Compensation

3 may be provided in not less than 5, nor more than

4 30, annual payments of equal or unequal size, as

5 agreed to by the owner and the Secretary.’’; and

6 (4) by adding at the end the following:

7 ‘‘(h) RESTORATION COST SHARE AGREEMENTS.—

8 The Secretary may enroll land in the wetland reserve pro9 gram through agreements that require the landowner to

10 restore wetlands on the land, if the agreement does not

11 provide the Secretary with an easement. Other than cost

12 share and technical assistance provided under section

13 1237C(b), the Secretary may not provide compensation

14 for an agreement under this subsection.’’.

15 (d) COST SHARE AND TECHNICAL ASSISTANCE.—

16 Section 1237C of the Food Security Act of 1985 (16

17 U.S.C. 3837c) is amended by striking subsection (b) and

18 inserting the following:

19 ‘‘(b) COST SHARE AND TECHNICAL ASSISTANCE.—

20 ‘‘(1) EASEMENTS.—In the case of an easement

21 entered into during the 1996 through 2002 calendar

22 years, in making cost share payments under sub23 section (a)(1), the Secretary shall—

24 ‘‘(A) in the case of a permanent easement,

25 pay the owner an amount that is not less than
121

•HR 2973 IH

1 75 percent, but not more than 100 percent, of

2 the eligible costs; and

3 ‘‘(B) in the case of a 30-year easement,

4 pay the owner an amount that is not less than

5 50 percent, but not more than 75 percent, of

6 the eligible costs.

7 ‘‘(2) RESTORATION COST-SHARE AGREE8 MENTS.—In making cost share payments in connec9 tion with a restoration cost-share agreement entered

10 into under section 1237(A)(h), the Secretary shall

11 pay the owner an amount that is not less than 50

12 percent, but not more than 75 percent, of the eligi13 ble costs.

14 ‘‘(3) TECHNICAL ASSISTANCE.—The Secretary

15 shall provide owners with technical assistance to as16 sist owners in complying with the terms of ease17 ments and restoration cost-share agreements.’’.

18 SEC. 362. ELIMINATION OF CONSULTATION REQUIRE19 MENTS WITH SECRETARY OF THE INTERIOR.

20 Section 1242 of the Food Security Act of 1985 (16

21 U.S.C. 3842) is amended—

22 (1) by striking ‘‘(a)’’ before ‘‘In carrying out’’;

23 and

24 (2) by striking subsection (b).
122

•HR 2973 IH

1 SEC. 363. REPEAL OF ENVIRONMENTAL EASEMENT PRO2 GRAM.

3 (a) REPEAL.—Chapter 3 of subtitle D of title XII

4 of the Food Security Act of 1985 (16 U.S.C. 3839–3839d)

5 is repealed.

6 (b) CONFORMING AMENDMENTS.—(1) Such title is

7 further amended—

8 (A) in section 1211(3) (16 U.S.C. 3811(3)), by

9 striking subparagraph (E);

10 (B) in section 1243(f) (16 U.S.C. 3843(f))—

11 (i) in paragraph (1), by striking ‘‘and the

12 Environmental Easement Program under chap13 ter 3, and not more than 10 percent of such

14 cropland may be subject to an easement ac15 quired under those chapters’’; and

16 (ii) by striking paragraph (2).

17 (2) Subsection (c) of section 1437 of the Food, Agri18 culture, Conservation, and Trade Act of 1990 (Public Law

19 101–624; 16 U.S.C. 3831 note) is amended to read as

20 follows:

21 ‘‘(c) EXTENSION AUTHORITY.—During the 1996

22 through 2000 calendar years, the Secretary of Agriculture

23 may extend up to 10 years contracts entered into before

24 November 28, 1990, under subchapter B of chapter 1 of

25 subtitle D of title XII of the Food Security Act of 1985

26 (16 U.S.C. 3831 et seq.) at the option of the owner or
123

•HR 2973 IH

1 operator on land that the Secretary has determined under

2 the study conducted under subsection (a) should remain

3 in conserving uses.’’.

4 SEC. 364. EFFECT OF AMENDMENTS ON EXISTING EASE5 MENTS.

6 The amendments made by sections 361 and 363 shall

7 not affect the validity or terms of any easements acquired

8 by the Secretary of Agriculture under subchapter C of

9 chapter 1 of subtitle D of title XII of the Food Security

10 Act of 1985 (16 U.S.C. 3837 et seq.) or under chapter

11 3 of such subtitle (16 U.S.C. 3839 et seq.) before the date

12 of the enactment of this Act or any payments required

13 to be made in connection with such easements.

14 SEC. 365. CONSERVATION RESERVE PROGRAM.

15 (a) PROGRAM EXTENSIONS.—

16 (1) ENVIRONMENTAL CONSERVATION ACREAGE

17 RESERVE PROGRAM.—Section 1230(a) of the Food

18 Security Act of 1985 (16 U.S.C. 3830(a)) is amend19 ed by striking ‘‘1995’’ and inserting ‘‘2002’’.

20 (2) CONSERVATION RESERVE PROGRAM.—Sec21 tion 1231 of the Act (16 U.S.C. 3831) is amended

22 in subsections (a) and (b)(3), by striking ‘‘1995’’

23 each place it appears and inserting ‘‘2002’’.
124

•HR 2973 IH

1 (3) DUTIES OF OWNERS AND OPERATORS.—

2 Section 1232(c) of the Act (16 U.S.C. 3832(c)) is

3 amended by striking ‘‘1995’’ and inserting ‘‘2002’’.

4 (b) MAXIMUM ENROLLMENT.—Section 1231(d) of

5 the Food Security Act of 1985 (16 U.S.C. 3831(d)) is

6 amended striking ‘‘total of’’ and all that follows through

7 the period at the end of the subsection and inserting ‘‘total

8 of 36,400,000 acres during the 1986 through 2002 cal9 endar years (including contracts extended by the Secretary

10 pursuant to section 1437(c) of the Food, Agriculture, Con11 servation, and Trade Act of 1990 (Public Law 101–624;

12 16 U.S.C. 3831 note).’’.

13 (c) OPTIONAL CONTRACT TERMINATION BY PRODUC14 ERS.—Section 1235 of the Food Security Act of 1985 (16

15 U.S.C. 3835) is amended by adding at the end the follow16 ing new subsection:

17 ‘‘(e) TERMINATION BY OWNER OR OPERATOR.—

18 ‘‘(1) NOTICE OF TERMINATION.—An owner or

19 operator of land subject to a contract entered into

20 under this subchapter may terminate the contract by

21 submitting to the Secretary written notice of the in22 tention of the owner or operator to terminate the

23 contract.

24 ‘‘(2) APPROVAL OF NOTICE.—The Secretary

25 shall accept and approve of the termination of a con-
125

•HR 2973 IH

1 tract entered into under this subchapter if the Sec2 retary determines that the land subject to the con3 tract is not environmentally sensitive.

4 ‘‘(3) EFFECTIVE DATE.—Subject to approval by

5 the Secretary under paragraph (2), the contract ter6 mination shall take effect 60 days after the date on

7 which the owner or operator submits the written no8 tice under paragraph (1).

9 ‘‘(4) PRORATED RENTAL PAYMENT.—Except as

10 provided in paragraph (7), if a contract entered into

11 under this subchapter is terminated under this sub12 section before the end of the fiscal year for which a

13 rental payment is due, the Secretary shall provide a

14 prorated rental payment covering the portion of the

15 fiscal year during which the contract was in effect.

16 ‘‘(5) RENEWED ENROLLMENT.—The termi17 nation of a contract entered into under this sub18 chapter shall not affect the ability of the owner or

19 operator who requested the termination to submit a

20 subsequent bid to enroll the land that was subject to

21 the contract into the conservation reserve.

22 ‘‘(6) CONSERVATION REQUIREMENTS.—If land

23 that was subject to a contract is returned to produc24 tion of an agricultural commodity, the conservation

25 requirements under subtitles B and C shall apply to
126

•HR 2973 IH

1 the use of the land to the extent that the require2 ments are similar to those requirements imposed on

3 other similar lands in the area, except that the re4 quirements may not be more onerous that the re5 quirements imposed on other lands.

6 ‘‘(7) REPAYMENT OF COST SHARE.—A person

7 who terminates a contract entered into under this

8 subchapter within less than 3 years after entering

9 into the contract shall reimburse the Secretary for

10 any cost share assistance provided under the con11 tract.’’.

12 (d) USE OF UNEXPENDED FUNDS.—Section 1231 of

13 the Food Security Act of 1985 (16 U.S.C. 3831) is

14 amended by adding at the end the following new sub15 section:

16 ‘‘(h) USE OF UNEXPENDED FUNDS FROM CONTRACT

17 TERMINATIONS.—If a contract entered into under this

18 section is terminated, voluntarily or otherwise, before the

19 expiration date specified in the contract, the Secretary

20 may use funds, already available to the Secretary to cover

21 payments under the contract, but unexpended as a result

22 of the contract termination, to enroll other eligible lands

23 in the conservation reserve established under this sub24 chapter.’’.

25 (e) FAIR MARKET VALUE RENTAL RATES.—
127

•HR 2973 IH

1 (1) IN GENERAL.—Section 1234(c) of the Food

2 Security Act of 1985 (16 U.S.C. 3834(c)) is amend3 ed by adding at the end the following new para4 graph:

5 ‘‘(5) In the case of a contract covering land which

6 has not been previously enrolled in the conservation re7 serve, annual rental payments under the contract may not

8 exceed the average fair market rental rate for comparable

9 lands in the county in which the lands are located. This

10 paragraph shall not apply to the extension of an existing

11 contract.’’.

12 (2) APPLICATION OF AMENDMENT.—The

13 amendment made by paragraph (1) shall apply with

14 respect to contracts for the enrollment of lands in

15 the conservation reserve program under section 1231

16 of the Food Security Act of 1985 (16 U.S.C. 3831))

17 entered into after the date of the enactment of this

18 Act.

19 Subtitle E—Wetland Conservation

20 Reform

21 SEC. 371. RESTATEMENT OF PROGRAM INELIGIBILITY.

22 (a) PROGRAM INELIGIBILITY.—Section 1221 of the

23 Food Security Act of 1985 (16 U.S.C. 3821) is amend24 ed—
128

•HR 2973 IH

1 (1) by redesignating subsection (b) as sub2 section (d); and

3 (2) by striking the section heading and all that

4 follows through the end of subsection (a) and insert5 ing the following:

6 ‘‘SEC. 1221. PROGRAM INELIGIBILITY.

7 ‘‘(a) PERSONS COVERED.—This section shall apply

8 with respect to any person who is a party to a production

9 flexibility contract under the Agricultural Market Transi10 tion Act or who participates in an annual program under

11 title I of such Act after January 1, 1996.

12 ‘‘(b) INELIGIBILITY.—Except as provided in this sub13 title and notwithstanding any other provision of law, any

14 person described in subsection (a) who produces during

15 the 1996 crop year or thereafter an agricultural commod16 ity on converted wetland, as determined by the Secretary,

17 shall be—

18 ‘‘(1) in violation of this section; and

19 ‘‘(2) ineligible for loans or payments in an

20 amount determined by the Secretary to be propor21 tionate to the severity of the violation.

22 ‘‘(c) LOANS AND PAYMENTS.—If a person has been

23 determined to have committed a violation during a crop

24 year under subsection (b), the Secretary shall determine
129

•HR 2973 IH

1 which, and the amount, of the following loans and pay2 ments for which the person shall be ineligible:

3 ‘‘(1) Any type of price support or payment

4 made available under the Agricultural Market Tran5 sition Act, the Commodity Credit Corporation Char6 ter Act (15 U.S.C. 714 et seq.), or any other Act.

7 ‘‘(2) A farm storage facility loan made under

8 section 4(h) of the Commodity Credit Corporation

9 Charter Act (15 U.S.C. 714b(h)).

10 ‘‘(3) A loan made, insured, or guaranteed under

11 the Consolidated Farm and Rural Development Act

12 (7 U.S.C. 1921 et seq.) or any other provision of law

13 administered by the Consolidated Farm Service

14 Agency, if the Secretary determines that the pro15 ceeds of the loan will be used for a purpose that will

16 contribute to conversion of a wetland (other than as

17 provided in this subtitle) to produce an agricultural

18 commodity.

19 ‘‘(4) A payment under section 4 or 5 of the

20 Commodity Credit Corporation Charter Act (15

21 U.S.C. 714b and 714c) during the crop year for the

22 storage of an agricultural commodity acquired by

23 the Commodity Credit Corporation.

24 ‘‘(5) During the crop year:
130

•HR 2973 IH

1 ‘‘(A) A payment made pursuant to a con2 tract entered into under the Agricultural Con3 servation Assistance Program established under

4 section 312 of the Conservation Consolidation

5 and Regulatory Reform Act of 1996 or the

6 Water Quality Conservation Program estab7 lished under section 342 of such Act.

8 ‘‘(B) A payment under section 401 or 402

9 of the Agricultural Credit Act of 1978 (16

10 U.S.C. 2201 and 2202).

11 ‘‘(C) A payment under subtitle D.

12 ‘‘(D) A payment, loan, or other assistance

13 under section 3 or 8 of the Watershed Protec14 tion and Flood Prevention Act (16 U.S.C. 1003

15 and 1006a).’’.

16 (b) CONFORMING AMENDMENTS.—(1) Subsection (d)

17 of such section (as redesignated by subsection (a)(1)) is

18 amended—

19 (A) by striking ‘‘Except’’ and inserting ‘‘WET20 LAND CONVERSION.—Except’’; and

21 (B) by striking ‘‘subsections (a) (1) through

22 (3)’’ and inserting ‘‘subsection (c)’’.

23 (2) Such section is further amended by adding at the

24 end the following new subsection:
131

•HR 2973 IH

1 ‘‘(e) PRIOR LOANS.—This section shall not apply to

2 a loan described in subsection (c) made before December

3 23, 1985.’’.

4 SEC. 372. DELINEATION OF WETLANDS; EXEMPTIONS TO

5 PROGRAM INELIGIBILITY.

6 (a) DELINEATION OF WETLANDS.—Subsection (a) of

7 section 1222 of the Food Security Act of 1985 (16 U.S.C.

8 3822) is amended to read as follows:

9 ‘‘(a) DELINEATION BY THE SECRETARY.—

10 ‘‘(1) IN GENERAL.—Subject to subsection (b),

11 the Secretary shall delineate, determine, and certify

12 all wetlands located on subject land on a farm.

13 ‘‘(2) WETLAND DELINEATION MAPS.—The Sec14 retary shall delineate wetlands on wetland delinea15 tion maps. On the request of an owner or operator,

16 the Secretary shall make a reasonable effort to make

17 an on-site wetland determination prior to delinea18 tion.

19 ‘‘(3) CERTIFICATION.—On providing notice to

20 affected owners or operators, the Secretary shall—

21 ‘‘(A) certify whether a map is sufficient for

22 the purpose of making a determination of ineli23 gibility for program benefits under section

24 1221; and
132

•HR 2973 IH

1 ‘‘(B) provide an opportunity to appeal the

2 certification prior to the certification becoming

3 final.

4 ‘‘(4) REVIEW OF MAPPING ON APPEAL.—In the

5 case of an appeal of the Secretary’s certification, the

6 Secretary shall review and certify the accuracy of

7 the mapping of all land subject to the appeal to en8 sure that the subject land has been accurately delin9 eated. Prior to rendering a decision on the appeal,

10 the Secretary shall conduct an on-site inspection of

11 the subject land on a farm.’’.

12 (b) REQUESTS FOR DELINEATION.—Such section is

13 further amended—

14 (1) by redesignating subsections (b) through (j)

15 as subsections (c) through (k), respectively; and

16 (2) by inserting after subsection (a) the follow17 ing new subsection:

18 ‘‘(b) REQUESTS FOR DELINEATION.—

19 ‘‘(1) IN GENERAL.—Any delineation or deter20 mination of the presence of wetland on subject land

21 on a farm made under this subtitle shall be valid

22 until such time as the owner or operator of the land

23 requests a new delineation or determination.

24 ‘‘(2) CHANGE IN DELINEATION.—In the case of

25 a change in a delineation or determination, the Sec-
133

•HR 2973 IH

1 retary shall promptly notify the owner or operator of

2 the subject land on a farm that is affected by the

3 change.

4 ‘‘(3) RELIANCE ON PRIOR DELINEATION.—Any

5 action taken with respect to subject land on a farm

6 by an owner or operator in reliance on a prior wet7 land delineation or determination by the Secretary

8 shall not be subject to a subsequent wetland delinea9 tion or determination by the Secretary.’’.

10 (c) EXEMPTIONS.—Subsection (c) of such section (as

11 redesignated by subsection (b)(1)) is amended to read as

12 follows:

13 ‘‘(c) EXEMPTIONS.—No person shall become ineli14 gible under section 1221 for program loans or payments

15 under the following circumstances:

16 ‘‘(1) As the result of the production of an agri17 cultural commodity on the following lands:

18 ‘‘(A) A converted wetland if the conversion

19 of the wetland was commenced before December

20 23, 1985.

21 ‘‘(B) Land that is a nontidal drainage or

22 irrigation ditch excavated in upland.

23 ‘‘(C) Land that is an artificially irrigated

24 area that would revert to upland if the irriga25 tion ceased.
134

•HR 2973 IH

1 ‘‘(D) Land that is an artificial lake or

2 pond created by excavating or diking land (that

3 is not a wetland) to collect and retain water

4 and that is used primarily for livestock water5 ing, fish production, irrigation, wildlife, fire

6 control, flood control, cranberry growing, or rice

7 production, or as a settling pond.

8 ‘‘(E) A wetland that is temporarily or inci9 dentally created as a result of adjacent develop10 ment activity.

11 ‘‘(F) Land that contains a wetland one

12 acre or less in size, as determined by the Sec13 retary. The Secretary shall make a reasonable

14 effort to make an on-site wetland inspection

15 whenever requested by an owner or operator re16 questing this exemption.

17 ‘‘(2) For the conversion of the following:

18 ‘‘(A) An artificial lake or pond created by

19 excavating or diking land that is not a wetland

20 to collect and retain water and that is used pri21 marily for livestock watering, fish production,

22 irrigation, wildlife, fire control, flood control,

23 cranberry growing, rice production, or as a set24 tling pond.
135

•HR 2973 IH

1 ‘‘(B) A wetland that is temporarily or inci2 dentally created as a result of adjacent develop3 ment activity.

4 ‘‘(C) A wetland previously identified as a

5 converted wetland (if the original conversion of

6 the wetland was commenced before December

7 23, 1985), but which returned to wetland status

8 after that date as a result of the lack of mainte9 nance of drainage, dikes, levees, or similar

10 structures or as a result of the lack of manage11 ment of the lands containing the wetland.

12 ‘‘(D) A wetland that is one acre or less in

13 size, as determined by the Secretary. The Sec14 retary shall make a reasonable effort to make

15 an on-site wetland inspection whenever re16 quested by an owner or operator requesting this

17 exemption.’’.

18 (d) IDENTIFICATION OF MINIMAL EFFECT EXEMP19 TIONS.—Subsection (e) of such section (as redesignated

20 by subsection (b)(1)) is amended to read as follows:

21 ‘‘(e) IDENTIFICATION OF MINIMAL EFFECT EXEMP22 TIONS.—For purposes of applying the minimal effect ex23 emption under subsection (g)(1), the Secretary shall iden24 tify by regulation categorical minimal effect exemptions on

25 a regional basis to assist persons in avoiding a violation
136

•HR 2973 IH

1 of the ineligibility provisions of section 1221. The Sec2 retary shall ensure that employees of the Department who

3 administer this subtitle receive appropriate training to

4 properly apply the minimal effect exemptions identified by

5 the Secretary.’’.

6 (e) MITIGATION EXEMPTIONS.—Subsection (g)(2) of

7 such section (as redesignated by subsection (b)(1)) is

8 amended—

9 (1) in the material preceding the subpara10 graphs, by striking ‘‘where such restoration’’ and in11 serting ‘‘through the enhancement of an existing

12 wetland, or through the creation of a new wetland,

13 and the restoration, enhancement, or creation’’;

14 (2) in subparagraph (A), by inserting ‘‘, en15 hancement, or creation’’ after ‘‘restoration’’;

16 (3) in subparagraph (D), by inserting ‘‘in the

17 case of enhancement or restoration of wetlands,’’

18 after ‘‘(D)’’;

19 (4) by redesignating subparagraphs (E) and

20 (F) as subparagraphs (F) and (G), respectively;

21 (5) by inserting after subparagraph (D) the fol22 lowing new subparagraph:

23 ‘‘(E) in the case of creation of wetlands, on

24 greater than a one-for-one acreage basis if more

25 acreage is needed to provide equivalent func-
137

•HR 2973 IH

1 tions and values that will be lost as a result of

2 the wetland conversion that is mitigated;’’; and

3 (6) in subparagraph (G) (as so redesignated)—

4 (A) by striking ‘‘restored’’ each place it ap5 pears and inserting ‘‘restored, enhanced, or cre6 ated’’; and

7 (B) by striking ‘‘restoration’’ and inserting

8 ‘‘restoration, enhancement, or creation’’.

9 (f) GOOD FAITH EXEMPTION.—Subsection (i) of

10 such section (as redesignated by subsection (b)(1)) is

11 amended to read as follows:

12 ‘‘(i) GOOD FAITH EXEMPTION.—

13 ‘‘(1) EXEMPTION DESCRIBED.—The Secretary

14 may waive a person’s ineligibility under section 1221

15 for program loans, payments, and benefits as the re16 sult of the conversion of a wetland subsequent to

17 November 28, 1990, or the production of an agricul18 tural commodity on a converted wetland subsequent

19 to January 1, 1996, if the Secretary determines that

20 the person has acted in good faith and without in21 tent to violate this subtitle.

22 ‘‘(2) PERIOD FOR COMPLIANCE.—A person who

23 the Secretary determines has acted in good faith and

24 without intent to violate this subtitle shall be allowed

25 a period of one year during which to implement the
138

•HR 2973 IH

1 measures and practices necessary to be considered

2 to actively restoring the subject wetland.’’.

3 (g) DETERMINATIONS.—Subsection (k) of such sec4 tion (as redesignated by subsection (b)(1)) is amended—

5 (1) in paragraph (1)—

6 (A) in the first sentence, by striking ‘‘and

7 a representative of the Fish and Wildlife Serv8 ice’’; and

9 (B) in the second sentence, by striking ‘‘,

10 who in’’ and all that follows through ‘‘Service’’;

11 and

12 (2) in paragraph (2), by striking ‘‘and a rep13 resentative’’ and all that follows through ‘‘national

14 offices’’ and inserting ‘‘shall report to the Natural

15 Resources Conservation Service’’.

16 (h) MITIGATION BANKING.—Such section is further

17 amended by adding at the end the following new sub18 section:

19 ‘‘(l) MITIGATION BANKING PROGRAM.—The Sec20 retary shall establish a pilot program for mitigation bank21 ing of wetlands to assist owners and operators in comply22 ing with the wetland conservation requirements of this

23 subtitle.’’.
139

•HR 2973 IH

1 SEC. 373. REPEAL OF CONSULTATION REQUIREMENT WITH

2 SECRETARY OF THE INTERIOR.

3 Section 1223 of the Food Security Act of 1985 (16

4 U.S.C. 3823) is repealed.

5 SEC. 374. APPLICATION OF PROGRAM INELIGIBILITY TO

6 AFFILIATED PERSONS.

7 The Food Security Act of 1985 is amended by insert8 ing after section 1222 (16 U.S.C. 3822) the following new

9 section:

10 ‘‘SEC. 1223. AFFILIATED PERSONS.

11 ‘‘If a person is affected by a reduction in benefits

12 under section 1221 and the affected person is affiliated

13 with other persons for the purpose of receiving the bene14 fits, the benefits of each affiliated person shall be reduced

15 under section 1221 in proportion to the interest held by

16 the affiliated person.’’.

17 TITLE IV—AGRICULTURAL

18 TRADE

19 Subtitle A—Public Law 480 and

20 Related Law

21 SEC. 401. FOOD ASSISTANCE TO DEVELOPING COUNTRIES.

22 Section 3 of the Agricultural Trade Development and

23 Assistance Act of 1954 (7 U.S.C. 1691a) is amended to

24 read as follows:

25 ‘‘SEC. 3. FOOD ASSISTANCE TO DEVELOPING COUNTRIES.

26 ‘‘It is the sense of Congress that—
140

•HR 2973 IH

1 ‘‘(1) the United States should maintain its role

2 of world leadership in promoting food security and

3 economic development in developing countries; and

4 ‘‘(2) the President should encourage other ad5 vanced nations to consider appropriate levels of food

6 assistance to meet the legitimate needs of developing

7 countries.’’.

8 SEC. 402. TRADE AND DEVELOPMENT ASSISTANCE.

9 Section 101 of the Agricultural Trade Development

10 and Assistance Act of 1954 (7 U.S.C. 1701) is amended—

11 (1) by striking ‘‘developing countries’’ each

12 place it appears and inserting ‘‘developing countries

13 and private entities’’; and

14 (2) in subsection (b)—

15 (A) by striking ‘‘To carry out’’ and all that

16 follows through ‘‘section 2, the’’ and inserting

17 ‘‘The’’; and

18 (B) by inserting ‘‘and entities’’ before the

19 period at the end.

20 SEC. 403. AGREEMENTS REGARDING ELIGIBLE COUNTRIES

21 AND PRIVATE ENTITIES.

22 Section 102 of the Agricultural Trade Development

23 and Assistance Act of 1954 (7 U.S.C. 1702) is amended

24 to read as follows:
141

•HR 2973 IH

1 ‘‘SEC. 102. AGREEMENTS REGARDING ELIGIBLE COUNTRIES

2 AND PRIVATE ENTITIES.

3 ‘‘(a) PRIORITY.—In selecting agreements to be en4 tered into under this title, the Secretary shall give priority

5 to agreements providing for the export of agricultural

6 commodities to developing countries that—

7 ‘‘(1) have the demonstrated potential to become

8 commercial markets for competitively priced United

9 States agricultural commodities;

10 ‘‘(2) are undertaking measures for economic de11 velopment purposes to improve food security and ag12 ricultural development, alleviate poverty, and pro13 mote broad-based equitable and sustainable develop14 ment; and

15 ‘‘(3) demonstrate the greatest need for food.

16 ‘‘(b) PRIVATE ENTITIES.—An agreement entered

17 into under this title with a private entity shall require such

18 security, or such other provisions as the Secretary deter19 mines necessary, to provide reasonable and adequate as20 surance of repayment of the financing extended to the pri21 vate entity.

22 ‘‘(c) AGRICULTURAL MARKET DEVELOPMENT

23 PLAN.—

24 ‘‘(1) IN GENERAL.—If there is in effect for a

25 country a market development plan approved by the

26 Secretary, for the purposes of the priority set forth
142

•HR 2973 IH

1 in subsection (a), the Secretary shall deem that

2 country to have the demonstrated potential to be3 come a commercial market for competitively priced

4 United States agricultural commodities. However,

5 not more than 50 percent of the agricultural com6 modities sold under this title during a fiscal year

7 shall be granted the priority because this deeming

8 rule applies.

9 ‘‘(2) REQUIREMENTS.—To be approved by the

10 Secretary, the agricultural market development plan

11 shall—

12 ‘‘(A) be submitted by a country or private

13 entity in conjunction with an agricultural trade

14 organization;

15 ‘‘(B) describe a project or program, de16 signed with the cooperation of the agricultural

17 trade organization, for the development and ex18 pansion of United States agricultural commod19 ity markets in the appropriate developing coun20 try;

21 ‘‘(C) use funds raised from the sale of ag22 ricultural commodities received under agree23 ments under section 101;
143

•HR 2973 IH

1 ‘‘(D) be implemented and administered in

2 coordination with the agricultural trade organi3 zation; and

4 ‘‘(E) contain additional requirements de5 termined necessary by the Secretary.

6 ‘‘(3) AGRICULTURAL TRADE ORGANIZATION.—

7 For purposes of this subsection, the term ‘agricul8 tural trade organization’ means a United States ag9 ricultural trade organization that promotes the ex10 port and sale of United States agricultural commod11 ities and that does not stand to profit directly from

12 specific sales of agricultural commodities.’’.

13 SEC. 404. TERMS AND CONDITIONS OF SALES.

14 Section 103 of the Agricultural Trade Development

15 and Assistance Act of 1954 (7 U.S.C. 1703) is amended—

16 (1) in subsection (a)(2)(A)—

17 (A) by striking ‘‘a recipient country to

18 make’’ and

19 (B) by striking ‘‘such country’’ and insert20 ing ‘‘the appropriate country’’;

21 (2) in subsection (c), by striking ‘‘less than 10

22 nor’’; and

23 (3) in subsection (d)—

24 (A) by striking ‘‘recipient country’’ and in25 serting ‘‘recipient’’; and
144

•HR 2973 IH

1 (B) by striking ‘‘7 years’’ and inserting ‘‘5

2 years’’.

3 SEC. 405. USE OF LOCAL CURRENCY.

4 Section 104 of the Agricultural Trade Development

5 and Assistance Act of 1954 (7 U.S.C. 1704) is amended—

6 (1) in subsection (a), by striking ‘‘recipient

7 country’’ and inserting ‘‘recipient’’; and

8 (2) in subsection (c)—

9 (A) by striking ‘‘recipient country’’ and in10 serting ‘‘appropriate developing country’’ each

11 place it appears; and

12 (B) by striking ‘‘recipient countries’’ and

13 inserting ‘‘appropriate developing countries’’.

14 SEC. 406. PROVISION OF AGRICULTURAL COMMODITIES.

15 Section 202(e) of the Agricultural Trade Develop16 ment and Assistance Act of 1954 (7 U.S.C. 1722(e)) is

17 amended—

18 (1) in the subsection heading, by inserting

19 ‘‘INTERGOVERNMENTAL ORGANIZATIONS,’’ after

20 ‘‘SUPPORT FOR’’;

21 (2) in paragraph (1)—

22 (A) by striking ‘‘$13,500,000’’ and insert23 ing ‘‘$28,000,000’’; and

24 (B) by striking ‘‘private voluntary organi25 zations and cooperatives to assist such organi-
145

•HR 2973 IH

1 zations and cooperatives’’ and inserting ‘‘eligi2 ble organizations described in subsection (d), to

3 assist those organizations’’; and

4 (3) in paragraphs (2) and (3), by striking ‘‘a

5 private’’ each place it appears and inserting ‘‘an

6 intergovernmental organization, private’’.

7 SEC. 407. EFFECTIVE USE OF COMMODITIES.

8 Section 202(f) of the Agricultural Trade Develop9 ment and Assistance Act of 1954 (7 U.S.C. 1722(f)) is

10 amended—

11 (1) by striking the period at the end of para12 graph (6) and inserting ‘‘; and’’; and

13 (2) by adding at the end the following:

14 ‘‘(7) be permitted to carry out a program under

15 this title—

16 ‘‘(A) in a foreign country in which the

17 Agency for International Development does not

18 have a mission, office, or other presence; or

19 ‘‘(B) that is not part of the developmental

20 strategy prepared by such Agency for the coun21 try in which the program is carried out.’’

22 SEC. 408. MONETIZATION.

23 Section 203 of the Agricultural Trade Development

24 and Assistance Act of 1954 (7 U.S.C. 1723) is amended—
146

•HR 2973 IH

1 (1) in subsection (a), by inserting ‘‘, or in a

2 country in the same region’’ after ‘‘in the recipient

3 country’’;

4 (2) in subsection (b)—

5 (A) by inserting ‘‘or in countries in the

6 same region’’ after ‘‘in the recipient country’’;

7 and

8 (B) by striking ‘‘10 percent’’ and inserting

9 ‘‘15 percent’’; and

10 (3) in subsection (c), by inserting ‘‘of within a

11 country in the same region’’ after ‘‘within the recipi12 ent country’’.

13 SEC. 409. GENERAL LEVELS OF ASSISTANCE UNDER PUB14 LIC LAW 480.

15 Section 204(a) of the Agricultural Trade Develop16 ment and Assistance Act of 1954 (7 U.S.C. 1724(a)) is

17 amended—

18 (1) in paragraph (1), by striking ‘‘amount

19 that’’ and all that follows through the period at the

20 end and inserting ‘‘amount that for each of fiscal

21 years 1996 through 2002 is not less than 2,025,000

22 metric tons.’’; and

23 (2) in paragraph (2), by striking ‘‘amount

24 that’’ and all that follows through the period at the

25 end and inserting ‘‘amount that for each of fiscal
147

•HR 2973 IH

1 years 1996 through 2002 is not less than 1,550,000

2 metric tons.’’.

3 SEC. 410. USE OF VALUE ADDED COMMODITIES.

4 Section 204(b)(1) of the Agricultural Trade Develop5 ment and Assistance Act of 1954 (7 U.S.C. 1724(e)) is

6 amended by inserting ‘‘and that not less than 50 percent

7 of the quantity of such bagged commodities that are whole

8 grain commodities shall be bagged in the United States’’

9 before the period at the end.

10 SEC. 411. FOOD AID CONSULTATION GROUP.

11 (a) MEMBERSHIP.—Section 205(b)(2) of the Agricul12 tural Trade Development and Assistance Act of 1954 (7

13 U.S.C. 1725(b)(2)) is amended by striking ‘‘International

14 Affairs and Commodity Programs’’ and inserting ‘‘Agri15 culture for Farm and Foreign Agricultural Services’’.

16 (b) EXPIRATION DATE.—Section 205(f) of the Agri17 cultural Trade Development and Assistance Act of 1954

18 (7 U.S.C. 1725(f)) is amended by striking ‘‘1995’’ and

19 inserting ‘‘2002’’.

20 SEC. 412. FOOD FOR DEVELOPMENT.

21 Sections 301(b) and 303 of the Agricultural Trade

22 Development and Assistance Act of 1954 (7 U.S.C.

23 1727(b) and 1727b) are each amended by striking ‘‘To

24 carry out’’ and all that follows through ‘‘section 2, the’’

25 and inserting ‘‘The’’.
148

•HR 2973 IH

1 SEC. 413. COMMODITY DETERMINATIONS.

2 Section 401 of the Agricultural Trade Development

3 and Assistance Act of 1954 (7 U.S.C. 1731) is amended—

4 (1) by striking subsections (a) through (d) and

5 inserting the following:

6 ‘‘(a) AVAILABILITY OF COMMODITIES.—No agricul7 tural commodity shall be available for disposition under

8 this Act if the Secretary determines that the disposition

9 would reduce the domestic supply of the commodity below

10 the supply needed to meet domestic requirements and pro11 vide adequate carryover (as determined by the Secretary),

12 unless the Secretary determines that some part of the sup13 ply should be used to carry out urgent humanitarian pur14 poses under this Act.’’;

15 (2) by redesignating subsections (e) and (f) as

16 subsections (b) and (c), respectively; and

17 (3) in subsection (c) (as so redesignated), by

18 striking ‘‘(e)(1)’’ and inserting ‘‘(b)(1)’’.

19 SEC. 414. GENERAL PROVISIONS.

20 Section 403 of the Agricultural Trade Development

21 and Assistance Act of 1954 (7 U.S.C. 1733) is amended—

22 (1) in subsection (c)—

23 (A) by inserting ‘‘or private entities, as ap24 propriate,’’ after ‘‘commitments from coun25 tries’’; and
149

•HR 2973 IH

1 (B) by striking ‘‘for use’’ and inserting ‘‘or

2 use’’; and

3 (2) in subsection (f), by inserting ‘‘or private

4 entities as appropriate,’’ after ‘‘from countries’’.

5 SEC. 415. AGREEMENTS.

6 Section 404 of the Agricultural Trade Development

7 and Assistance Act of 1954 (7 U.S.C. 1734) is amended—

8 (1) in subsection (a), by inserting ‘‘with foreign

9 countries’’ after ‘‘Before entering into agreements’’;

10 (2) in subsection (b)(2)—

11 (A) by inserting ‘‘with foreign countries’’

12 after ‘‘with respect to agreements entered into’’;

13 and

14 (B) by inserting before the semicolon at

15 the end the following: ‘‘and broad-based eco16 nomic growth’’; and

17 (3) so that subsection (c)(1) reads as follows:

18 ‘‘(1) IN GENERAL.—

19 ‘‘(A) TITLES I AND III.—Agreements to

20 provide assistance on a multi-year basis under

21 titles I and III may be made available to recipi22 ent countries or to eligible organizations.

23 ‘‘(B) TITLE II.—Agreements to provide as24 sistance on a multi-year basis shall be made
150

•HR 2973 IH

1 available to recipient countries and to eligible

2 organizations.’’.

3 SEC. 416. ADMINISTRATIVE PROVISIONS.

4 Section 407 of the Agricultural Trade Development

5 and Assistance Act of 1954 (7 U.S.C. 1736a) is amend6 ed—

7 (1) in subsection (a)(1), by inserting ‘‘or pri8 vate entity’’ after ‘‘importing country’’;

9 (2) in subsection (c)—

10 (A) in paragraph (1)(A), by inserting ‘‘im11 porter or’’ before ‘‘importing country’’; and

12 (B) in paragraph (2)(A), by inserting ‘‘im13 porter or’’ before ‘‘importing country’’; and

14 (3) by striking subsection (h).

15 SEC. 417. EXPIRATION DATE.

16 Section 408 of the Agricultural Trade Development

17 and Assistance Act of 1954 (7 U.S.C. 1736b) is amended

18 by striking ‘‘1995’’ and inserting ‘‘2002’’.

19 SEC. 418. REPEAL OF SECTIONS 409 AND 410.

20 Sections 409 and 410 of the Agricultural Trade De21 velopment and Assistance Act of 1954 (7 U.S.C. 1736c

22 and 1736d) are repealed.
151

•HR 2973 IH

1 SEC. 419. USE OF LOCAL CURRENCY IN TITLE V.

2 Section 501(a)(6) of the Agricultural Trade Develop3 ment and Assistance Act of 1954 (7 U.S.C. 1737(a)(6))

4 is amended—

5 (1) by striking ‘‘practicable’’, and all that fol6 lows through ‘‘under this section’’ and inserting

7 ‘‘that local currencies can be used to meet the costs

8 of a program established under this section, aug9 ment funds of the United States that are available

10 for such a program’’; and

11 (2) by inserting ‘‘, within the country where the

12 program is conducted’’ before the period at the end.

13 SEC. 420. TITLE V FUNDING LEVEL.

14 Section 501(c) of the Agricultural Trade Develop15 ment and Assistance Act of 1954 (7 U.S.C. 1737(c)) is

16 amended—

17 (1) by striking ‘‘0.2’’ and inserting ‘‘0.4’’; and

18 (2) by striking ‘‘1991 through 1995’’ and in19 serting ‘‘1996 through 2002’’.

20 SEC. 421 FOOD FOR PROGRESS.

21 Section 1110 of the Food Security Act of 1985 (7

22 U.S.C. 1736o) is amended—

23 (1) in the first sentence of subsection (b)(1), by

24 inserting ‘‘intergovernmental organizations,’’ after

25 ‘‘private voluntary organizations,’’;
152

•HR 2973 IH

1 (2) in subsection (g), by striking ‘‘1995’’ and

2 inserting ‘‘2002’’;

3 (3) in subsection (k), by striking ‘‘1995’’ and

4 inserting ‘‘2002’’;

5 (4) in subsection (l)(1)—

6 (A) by striking ‘‘1995’’ and inserting

7 ‘‘2002’’; and

8 (B) in inserting ‘‘, and to provide adminis9 trative and technical assistance for monetiza10 tion programs,’’ after ‘‘monitoring of food as11 sistance programs’’; and

12 (5) in subsection (m)—

13 (A) by striking ‘‘with respect to the inde14 pendent states of the former Soviet Union’’;

15 and

16 (B) in paragraph (2), by striking ‘‘in the

17 independent states’’.

18 SEC. 422. FOOD SECURITY COMMODITY RESERVE.

19 (a) FOOD SECURITY COMMODITY RESERVE ACT OF

20 1995.—The title heading of title III of the Agricultural

21 Act of 1980 (7 U.S.C. 1736f–1 note) is amended by strik22 ing ‘‘FOOD SECURITY WHEAT RESERVE ACT OF 1980’’

23 and inserting ‘‘FOOD SECURITY COMMODITY RE24 SERVE ACT OF 1995’’.
153

•HR 2973 IH

1 (b) SHORT TITLE.—Section 301 of the Act (7 U.S.C.

2 1736f–1 note) is amended by striking ‘‘Food Security

3 Wheat Reserve Act of 1980’’ and inserting ‘‘Food Security

4 Commodity Reserve Act of 1995’’.

5 (c) IN GENERAL.—Section 302 of the Act (7 U.S.C.

6 1736f–1) is amended—

7 (1) in the section heading, by striking ‘‘FOOD

8 SECURITY WHEAT RESERVE’’ and inserting

9 ‘‘FOOD SECURITY COMMODITY RESERVE’’;

10 (2) so that subsection (a) reads as follows:

11 ‘‘(a) IN GENERAL.—To provide for a reserve solely

12 to meet emergency humanitarian food needs in developing

13 countries, the Secretary shall establish a reserve stock of

14 wheat, rice, corn, or sorghum, or any combination of the

15 commodities, totaling not more than 4,000,000 metric

16 tons for use as described in subsection (c).’’;

17 (3) so that subsection (b)(1) reads as follows:

18 ‘‘(b) COMMODITIES IN RESERVE.—

19 ‘‘(1) IN GENERAL.—The reserve established

20 under this section shall consist of—

21 ‘‘(A) wheat in the reserve established

22 under the Food Security Commodity Reserve

23 Act of 1980 as of the date of enactment of the

24 Food For Peace Reauthorization Act of 1995;
154

•HR 2973 IH

1 ‘‘(B) wheat, rice, corn, and sorghum (re2 ferred to in this section as ‘eligible commod3 ities’) acquired in accordance with paragraph

4 (2) to replenish eligible commodities released

5 from the reserve, including wheat to replenish

6 wheat released from the reserve established

7 under the Food Security Wheat Reserve Act of

8 1980 but not replenished as of the date of en9 actment of the Food For Peace Reauthorization

10 Act of 1995; and

11 ‘‘(C) such rich, corn, and sorghum as the

12 Secretary of Agriculture (referred to in this sec13 tion as the ‘Secretary’) may, at such time and

14 in such manner as the Secretary determines ap15 propriate, acquire as a result of exchanging an

16 equivalent value of wheat in the reserve estab17 lished under this section.’’;

18 (4) in subsection (b)(2)—

19 (A) by striking ‘‘(2)(A) Subject to’’ and in20 serting the following:

21 ‘‘(2) REPLENISHMENT OF RESERVE.—

22 ‘‘(A) IN GENERAL.—Subject to’’;

23 (B) in subparagraph (A)—
155

•HR 2973 IH

1 (i) by striking ‘‘(i) of this section

2 stocks of wheat’’ and inserting ‘‘(i) stocks

3 of eligible commodities’’;

4 (ii) in clause (ii), by striking ‘‘stocks

5 of wheat’’ and inserting ‘‘stocks of eligible

6 commodities’’; and

7 (iii) in the second sentence, by strik8 ing ‘‘wheat’’ and inserting ‘‘eligible com9 modities’’; and

10 (C) in subparagraph (B)—

11 (i) by striking ‘‘(B) Not later’’ and in12 serting ‘‘(B) TIME FOR REPLENISHMENT

13 OF RESERVE.—Not later’’; and

14 (ii) in clause (ii), by striking ‘‘wheat’’

15 and inserting ‘‘eligible commodities’’;

16 (5) so that subsections (c) through (f) read as

17 follows:

18 ‘‘(c) RELEASE OF ELIGIBLE COMMODITIES.—

19 ‘‘(1) DETERMINATION.—If the Secretary deter20 mines that the amount of commodities allocated for

21 minimum assistance under section 204(a)(1) of the

22 Agricultural Trade Development and Assistance Act

23 of 1954 (7 U.S.C. 1724(a)(1)) less the amount of

24 commodities allocated for minimum non-emergency

25 assistance under section 204(a)(2) of the Act (7
156

•HR 2973 IH

1 U.S.C. 1724(a)(2)) will be insufficient to meet the

2 need for commodities for emergency assistance

3 under section 202(a) of the Act (7 U.S.C. 1722(a)),

4 the Secretary in any fiscal year may release from the

5 reserve—

6 ‘‘(A) up to 500,000 metric tons of wheat

7 or the equivalent value of eligible commodities

8 other than wheat; and

9 ‘‘(B) any eligible commodities which under

10 subparagraph (A) could have been released but

11 were not released in prior fiscal years.

12 ‘‘(2) AVAILABILITY OF COMMODITIES.—Com13 modities released under paragraph (1) shall be made

14 available under title II of the Agricultural Trade De15 velopment and Assistance Act of 1954 (7 U.S.C.

16 1721 et seq.) for emergency assistance.

17 ‘‘(3) EXCHANGE.—The Secretary may exchange

18 an eligible commodity for another United States

19 commodity of equal value, including powdered milk,

20 pulses, and vegetable oil.

21 ‘‘(4) USE OF NORMAL COMMERCIAL PRAC22 TICES.—To the maximum extent practicable consist23 ent with the fulfillment of the purposes of this sec24 tion and the effective and efficient administration of

25 this section, the Secretary shall use the usual and
157

•HR 2973 IH

1 customary channels, facilities, arrangements, and

2 practices of the trade and commerce.

3 ‘‘(5) WAIVER OF MINIMUM TONNAGE REQUIRE4 MENTS.—Nothing in this subsection shall require

5 the exercise of the waiver under section 204(a)(3) of

6 the Agricultural Trade Development and Assistance

7 Act of 1954 (7 U.S.C. 1724(a)(3)) as a prerequisite

8 for the release of eligible commodities under this

9 subsection.

10 ‘‘(d) TRANSPORTATION AND HANDLING COSTS.—

11 ‘‘(1) IN GENERAL.—The cost of transportation

12 and handling of eligible commodities released from

13 the reserve established under this section shall be

14 paid by the Commodity Credit Corporation in ac15 cordance with section 406 of the Agricultural Trade

16 Development and Assistance Act of 1954 (7 U.S.C.

17 1736).

18 ‘‘(2) REIMBURSEMENT.—

19 ‘‘(A) IN GENERAL.—The Commodity Cred20 it Corporation shall be reimbursed for the costs

21 incurred under paragraph (1) from the funds

22 made available to carry out the Agricultural

23 Trade Development and Assistance Act of 1954

24 (7 U.S.C. 1691 et seq.).
158

•HR 2973 IH

1 ‘‘(B) BASIS FOR REIMBURSEMENT.—The

2 reimbursement shall be made on the basis of

3 the lesser of the actual cost incurred by the

4 Commodity Credit Corporation less any savings

5 achieved as a result of decreased storage and

6 handling costs for the reserve. Such reimburse7 ment may be made from funds appropriated for

8 that purpose in subsequent years.

9 ‘‘(C) DECREASED STORAGE AND HAN10 DLING COSTS.—For purposes of this subsection,

11 ‘decreased storage and handling costs’ shall

12 mean the total actual costs for storage and han13 dling incurred by the Commodity Credit Cor14 poration for the reserve established under title

15 III of the Agricultural Act of 1980 in fiscal

16 year 1995 less the total actual costs for storage

17 and handling incurred by the Corporation for

18 the reserve established under this Act for the

19 fiscal year for which the savings are calculated.

20 ‘‘(e) MANAGEMENT OF RESERVE.—The Secretary

21 shall provide for—

22 ‘‘(1) the management of eligible commodities in

23 the reserve as to location and quality of commodities

24 needed to meet emergency situations; and
159

•HR 2973 IH

1 ‘‘(2) the periodic rotation of eligible commod2 ities in the reserve to avoid spoilage and deteriora3 tion of such stocks.

4 ‘‘(f) TREATMENT OF RESERVE UNDER OTHER

5 LAW.—Eligible commodities in the reserve established

6 under this section shall not be—

7 ‘‘(1) considered a part of the total domestic

8 supply (including carryover) for the purpose of ad9 ministering the Agricultural Trade Development and

10 Assistance Act of 1954 (7 U.S.C. 1691 et seq.); and

11 ‘‘(2) subject to any quantitative limitation on

12 exports that may be imposed under section 7 of the

13 Export Administration Act of 1979 (50 U.S.C. App.

14 2406).’’;

15 (6) in subsection (g)—

16 (A) by striking ‘‘(g)(1) The’’ and inserting

17 the following:

18 ‘‘(g) USE OF COMMODITY CREDIT CORPORATION.—

19 The’’;

20 (B) by striking ‘‘wheat’’ and inserting ‘‘an

21 eligible commodity’’; and

22 (C) by striking paragraph (2);

23 (7) in subsection (h)—

24 (A) by striking ‘‘(h) Any’’ and inserting:

25 ‘‘(h) FINALITY OF DETERMINATION.—Any’’; and
160

•HR 2973 IH

1 (B) by striking ‘‘President or the Secretary

2 of Agriculture’’ and inserting ‘‘Secretary’’; and

3 (8) in subsection (i)—

4 (A) by striking ‘‘(i) The’’ and inserting:

5 ‘‘(i) TERMINATION OF AUTHORITY.—The’’;

6 (B) by striking ‘‘wheat’’ each place it ap7 pears and inserting ‘‘eligible commodities’’; and

8 (C) by striking ‘‘1995’’ each place it ap9 pears and inserting ‘‘2002’’.

10 (d) EFFECTIVE DATE.—Section 303 of the Act (7

11 U.S.C. 1736–1 note) is amended by striking ‘‘October 1,

12 1980’’ and all that follows through the end of the section

13 and inserting ‘‘on the date of enactment of this Act.’’.

14 (e) CONFORMING AMENDMENT.—Section 208(d)(2)

15 of the Agriculture Trade Suspension Adjustment Act of

16 1980 (7 U.S.C. 4001(d)(2)) is amended to read as follows:

17 ‘‘(2) APPLICABILITY OF CERTAIN PROVI18 SIONS.—Subsections (b)(2), (c), (e), and (f) of sec19 tion 302 of the Food Security Commodity Reserve

20 Act of 1995 shall apply to commodities in any re21 serve established under paragraph (1), except that

22 the references to ‘eligible commodities’ in the sub23 sections shall be deemed to be references to ‘agricul24 tural commodities’.’’.
161

•HR 2973 IH

1 Subtitle B—Agricultural Trade Act

2 of 1978

3 SEC. 431. AGRICULTURAL EXPORT PROMOTION STRATEGY.

4 (a) GENERALLY.—Section 103 of the Agricultural

5 Trade Act of 1978 (7 U.S.C. 5603) is amended to read

6 as follows:

7 ‘‘SEC. 103. AGRICULTURAL EXPORT PROMOTION STRATEGY.

8 ‘‘The Secretary shall periodically prepare an agricul9 tural trade strategy report on the agricultural trade strat10 egy developed by the Secretary to implement the programs

11 designed to promote the export of United States agricul12 tural commodities. The Secretary shall submit such report

13 to the Committee on Agriculture and the Committee on

14 Ways and Means of the House of Representatives and the

15 Committee on Agriculture, Nutrition, and Forestry and

16 the Committee on Finance of the Senate.’’.

17 (b) ELIMINATION OF REPORT.—

18 (1) IN GENERAL.—Section 601 of the Act (7

19 U.S.C. 5711) is repealed.

20 (2) CONFORMING AMENDMENT.—The last sen21 tence of section 603 of the Act (7 U.S.C. 5713) is

22 amended by striking ‘‘, in a consolidated report,’’

23 and all that follows through ‘‘section 601’’ and in24 serting ‘‘or in a consolidated report’’.
162

•HR 2973 IH

1 SEC. 432. EXPORT CREDITS.

2 (a) EXPORT CREDIT GUARANTEE PROGRAM.—Sec3 tion 202 of the Agricultural Trade Act of 1978 (7 U.S.C.

4 5622) is amended—

5 (1) in subsection (f)—

6 (A) by striking ‘‘(f) RESTRICTIONS.—The’’

7 and inserting the following:

8 ‘‘(f) RESTRICTIONS.—

9 ‘‘(1) IN GENERAL.—The’’; and

10 (B) by adding at the end the following:

11 ‘‘(2) CRITERIA FOR DETERMINATION.—In mak12 ing the determination required under paragraph (1)

13 with respect to credit guarantees under subsection

14 (b) for a country, the Secretary may consider, in ad15 dition to financial, macroeconomic, and monetary in16 dicators—

17 ‘‘(A) whether an International Monetary

18 Fund standby agreement, Paris Club reschedul19 ing plan, or other economic restructuring plan

20 is in place with respect to the country;

21 ‘‘(B) the convertibility of the currency of

22 the country;

23 ‘‘(C) whether the country provides ade24 quate legal protection for foreign investments;

25 ‘‘(D) whether the country has viable finan26 cial markets;
163

•HR 2973 IH

1 ‘‘(E) whether the country provides ade2 quate legal protection for the private property

3 rights of citizens of the country; and

4 ‘‘(F) any other factors that are relevant to

5 the ability of the country to service the debt of

6 the country.’’;

7 (2) in subsection (h)—

8 (A) by striking ‘‘(h) FOREIGN AGRICUL9 TURAL COMPONENTS’’ and inserting ‘‘(h) UNIT10 ED STATES AGRICULTURAL COMMODITIES’’;

11 and

12 (B) by striking the final sentence;

13 (3) in subsection (i)—

14 (A) by striking ‘‘INSTITUTIONS.—A finan15 cial’’ and inserting the following: ‘‘INSTITU16 TIONS.—

17 ‘‘(1) IN GENERAL.—A financial’’;

18 (B) by striking paragraph (1);

19 (C) by striking ‘‘(2) is’’ and inserting the

20 following:

21 ‘‘(A) is’’;

22 (D) by striking ‘‘(3) is’’ and inserting the

23 following:

24 ‘‘(B) is’’; and

25 (E) by adding at the end the following:
164

•HR 2973 IH

1 ‘‘(2) THIRD COUNTRY BANKS.—The Commodity

2 Credit Corporation may guarantee under subsections

3 (a) and (b) the repayment of credit made available

4 to finance an export sale irrespective of whether the

5 obligor is located in the country to which the export

6 sale is destined.’’; and

7 (4) by striking subsection (k).

8 (b) HIGH VALUE AND VALUE-ADDED PRODUCTS.—

9 Title I of the Act (7 U.S.C. 5601 et seq.) is amended by

10 adding at the end the following:

11 ‘‘SEC. 106. HIGH VALUE AND VALUE-ADDED PRODUCTS.

12 ‘‘For the purpose of discouraging unfair trade prac13 tices, in any trade and export programs operated by the

14 Secretary or the Commodity Credit Corporation, the Sec15 retary shall establish as an objective to expend annually

16 at least 25 percent of the total funds available (or 25 per17 cent of the value of any commodities employed) for pro18 gram activities involving the export sales of high value ag19 ricultural commodities and value-added products of United

20 States agricultural commodities.’’.

21 (c) FUNDING LEVELS.—Section 211(b) of the Act (7

22 U.S.C. 5641(b)) is amended—

23 (1) by striking paragraph (2);

24 (2) by redesignating subparagraph (B) of para25 graph (1) as paragraph (2) and indenting the mar-
165

•HR 2973 IH

1 gin of paragraph (2) (as so redesignated) so as to

2 align with the margin of paragraph (1); and

3 (3) by striking paragraph (1) and inserting the

4 following:

5 ‘‘(1) EXPORT CREDIT GUARANTEES.—The

6 Commodity Credit Corporation shall make available

7 for each of fiscal years 1996 through 2002 not less

8 than $5,500,000,000 in credit guarantees under

9 subsections (a) and (b) of section 202.’’.

10 (d) DEFINITIONS.—Section 102(7) of the Act (7

11 U.S.C. 5602(7)) is amended by striking subparagraphs

12 (A) and (B) and inserting the following:

13 ‘‘(A) an agricultural commodity or product

14 entirely produced in the United States; or

15 ‘‘(B) a product of an agricultural commod16 ity—

17 ‘‘(i) 90 percent or more of the agricul18 tural components of which by weight, ex19 cluding packaging and added water, is en20 tirely produced in the United States; and

21 ‘‘(ii) that the Secretary determines to

22 be a United States high value or value23 added agricultural product.’’.
166

•HR 2973 IH

1 SEC. 433. REGULATIONS.

2 Section 404 of the Agricultural Trade Act of 1978

3 (7 U.S.C. 5664) is repealed.

4 SEC. 434. AGRICULTURAL EMBARGO PROTECTION.

5 Section 411 of the Agricultural Trade Act of 1978

6 (7 U.S.C. 5671) is amended—

7 (1) by striking subsections (a) and (b) and in8 serting the following:

9 ‘‘(a) IN GENERAL.—Notwithstanding any other pro10 vision of law, if the President or other member of the exec11 utive branch of the Federal Government causes the export

12 of any agricultural commodity to any country or area of

13 the world to be suspended or restricted for reasons of na14 tional security, foreign policy, or limited domestic supply

15 under the Export Administration Act of 1979 (50 U.S.C.

16 App. 2401 et seq.) or under any other provision of law,

17 the Secretary shall compensate producers of the commod18 ity involved by making payments available to the produc19 ers, as provided in subsection (b).

20 ‘‘(b) AMOUNT OF PAYMENT.—If the Secretary makes

21 payments available to producers under subsection (a), the

22 amount of the payment shall be determined by the Sec23 retary based on the Secretary’s estimate of the loss suf24 fered by the producer of the commodity involved due to

25 the decrease in price of the commodity as a result of the

26 suspension or restriction of exports.’’; and
167

•HR 2973 IH

1 (2) by adding at the end the following:

2 ‘‘(f) DEFINITION.—As used in this section, the term

3 ‘agricultural commodity’ includes plant nutrient fertilizer

4 materials and any raw materials used to produce plant nu5 trient fertilizer materials, as classified in the Harmonized

6 Trade Schedule of the United States (19 U.S.C. 1202, 19

7 U.S.C. 3001 et seq.).’’.

8 SEC. 435. FOREIGN AGRICULTURAL SERVICE.

9 Section 503 of the Agricultural Trade Act of 1978

10 (7 U.S.C. 5693) is amended to read as follows:

11 ‘‘SEC. 503. ESTABLISHMENT OF THE FOREIGN AGRICUL12 TURAL SERVICE.

13 ‘‘The Service shall assist the Secretary in carrying

14 out the agricultural trade policy and international co15 operation policy of the United States by—

16 ‘‘(1) acquiring information pertaining to agri17 cultural trade;

18 ‘‘(2) carrying out market promotion and devel19 opment activities;

20 ‘‘(3) providing agricultural technical assistance

21 and training; and

22 ‘‘(4) carrying out the programs authorized

23 under this Act, the Agricultural Trade Development

24 and Assistance Act of 1954 (7 U.S.C. 1691 et seq.),

25 and other Acts.’’.
168

•HR 2973 IH

1 Subtitle C—Miscellaneous

2 SEC. 441. TRIGGERED EXPORT ENHANCEMENT.

3 (a) READJUSTMENT OF SUPPORT LEVELS.—Section

4 1302 of the Omnibus Budget Reconciliation Act of 1990

5 (Public Law 101–508; 7 U.S.C. 1421 note) is repealed.

6 (b) TRIGGERED MARKETING LOANS AND EXPORT

7 ENHANCEMENT.—Section 4301 of the Omnibus Trade

8 and Competitiveness Act of 1988 (Public Law 100–418;

9 7 U.S.C. 1446 note) is repealed.

10 (c) EFFECTIVE DATE.—The amendments made by

11 this section shall be effective beginning with the 1996

12 crops of wheat, feed grains, upland cotton, and rice.

13 SEC. 442. POLICY ON EXPANSION OF INTERNATIONAL MAR14 KETS.

15 Section 1207 of the Agriculture and Food Act of

16 1981 (7 U.S.C. 1736m) is repealed.

17 SEC. 443. POLICY ON MAINTENANCE AND DEVELOPMENT

18 OF EXPORT MARKETS.

19 Sections 1121, 1122, and 1123 of the Food Security

20 Act of 1985 (7 U.S.C. 1736p) are repealed.

21 SEC. 444. POLICY ON UNFAIR TRADE PRACTICES.

22 Section 1164 of the Food Security Act of 1985 (Pub23 lic Law 99–198; 99 Stat. 1499) is repealed.
169

•HR 2973 IH

1 SEC. 445. AGRICULTURAL AID AND TRADE MISSIONS.

2 (a) IN GENERAL.—The Agricultural Aid and Trade

3 Missions Act (7 U.S.C. 1736bb et seq.) is repealed.

4 (b) CONFORMING AMENDMENT.—Section 7 of Public

5 Law 100–277 (7 U.S.C. 1736bb note) is repealed.

6 SEC. 446. ANNUAL REPORTS BY AGRICULTURAL ATTACHES.

7 Section 108(b)(1)(B) of the Agricultural Act of 1954

8 (7 U.S.C. 1748(b)(1)(B)) is amended by striking ‘‘includ9 ing fruits, vegetables, legumes, popcorn, and ducks’’.

10 SEC. 447. ORDERLY LIQUIDATION OF STOCKS.

11 Sections 201 and 207 of the Agricultural Act of 1956

12 (7 U.S.C. 1851 and 1857) are repealed.

13 SEC. 448. REGULATIONS.

14 Section 707 of the Freedom for Russia and Emerging

15 Eurasian Democracies and Open Markets Support Act of

16 1992 (Public Law 102–511; 7 U.S.C. 5621 note) is

17 amended by striking subsection (d).

18 SEC. 449. EMERGING MARKETS.

19 (a) PROMOTION OF AGRICULTURAL EXPORTS TO

20 EMERGING MARKETS.—

21 (1) EMERGING MARKETS.—Section 1542 of the

22 Food, Agriculture, Conservation, and Trade Act of

23 1990 (Public Law 101–624; 7 U.S.C. 5622 note) is

24 amended—
170

•HR 2973 IH

1 (A) in the section heading, by striking

2 ‘‘EMERGING DEMOCRACIES’’ and inserting

3 ‘‘EMERGING MARKETS’’;

4 (B) by striking ‘‘emerging democracies’’

5 each place it appears in subsections (b), (d),

6 and (e) and inserting ‘‘emerging markets’’;

7 (C) by striking ‘‘emerging democracy’’

8 each place it appears in subsection (c) and in9 serting ‘‘emerging market’’; and

10 (D) by striking subsection (f) and inserting

11 the following:

12 ‘‘(f) EMERGING MARKET.—In this section and sec13 tion 1543, term ‘emerging market’ means any country

14 that the Secretary determines—

15 ‘‘(1) is taking steps toward a market-oriented

16 economy through the food, agriculture, or rural busi17 ness sectors of the economy of the country; and

18 ‘‘(2) has the potential to provide a viable and

19 significant market for United States agricultural

20 commodities or products of United States agricul21 tural commodities.’’.

22 (2) FUNDING.—Section 1542 of the Act is

23 amended by striking subsection (a) and inserting the

24 following:
171

•HR 2973 IH

1 ‘‘(a) FUNDING.—The Commodity Credit Corporation

2 shall make available for fiscal years 1996 through 2002

3 not less than $1,000,000,000 of direct credits or export

4 credit guarantees for exports to emerging markets under

5 section 201 or 202 of the Agricultural Trade Act of 1978

6 (7 U.S.C. 5621 and 5622), in addition to the amounts

7 required or authorized under section 211 of the Act (7

8 U.S.C. 5641) for the program.’’.

9 (3) AGRICULTURAL FELLOWSHIP PROGRAM.—

10 Section 1542 of the Act is amended—

11 (A) in subsection (b), by striking the last

12 sentence and inserting the following: ‘‘The

13 Commodity Credit Corporation shall give prior14 ity under this subsection to—

15 ‘‘(A) projects that encourage the privatization

16 of the agricultural sector or that benefit private

17 farms or cooperatives in emerging markets; and

18 ‘‘(B) projects for which nongovernmental per19 sons agree to assume a relatively larger share of the

20 costs.’’; and

21 (B) in subsection (d)—

22 (i) in the matter preceding paragraph

23 (1), by striking ‘‘the Soviet Union’’ and in24 serting ‘‘emerging markets’’;

25 (ii) in paragraph (1)—
172

•HR 2973 IH

1 (I) in subparagraph (A)(i)—

2 (aa) by striking ‘‘1995’’ and

3 inserting ‘‘2002’’; and

4 (bb) by striking ‘‘those sys5 tems, and identify’’ and potential

6 reductions in trade barriers, and

7 identify and carry out’’;

8 (II) in subparagraph (B), by

9 striking ‘‘shall’’ and inserting ‘‘may’’;

10 (III) in subparagraph (D), by in11 serting ‘‘(including the establishment

12 of extension services)’’ after ‘‘tech13 nical assistance’’;

14 (IV) by striking subparagraph

15 (F);

16 (V) by redesignating subpara17 graph (G), (H), and (I) as subpara18 graph (F), (G), and (H), respectively;

19 and

20 (VI) in subparagraph (H) (as re21 designated by subclause (V)), by strik22 ing ‘‘$10,000,000’’ and inserting

23 ‘‘$20,000,000’’;

24 (iii) in paragraph (2)—
173

•HR 2973 IH

1 (I) by striking ‘‘the Soviet

2 Union’’ each place it appears and in3 serting ‘‘emerging markets’’;

4 (II) in subparagraph (A), by

5 striking ‘‘a free market food produc6 tion and distribution system’’ and in7 serting ‘‘free market food production

8 and distribution systems’’;

9 (III) in subparagraph (B)—

10 (aa) in clause (i), by striking

11 ‘‘Government’’ and inserting

12 ‘‘governments’’;

13 (bb) in clause (iii)(II), by

14 striking ‘‘and’’ at the end;

15 (cc) in clause (iii)(III), by

16 striking the period at the end

17 and inserting ‘‘; and’’; and

18 (dd) by adding at the end of

19 clause (iii) the following:

20 ‘‘(IV) to provide for the exchange

21 of administrators and faculty mem22 bers from agricultural and other insti23 tutions to strengthen and revise edu24 cational programs in agricultural eco25 nomics, agribusiness, and agrarian
174

•HR 2973 IH

1 law, to support change towards a free

2 market economy in emerging mar3 kets.’’;

4 (IV) by striking subparagraph

5 (D); and

6 (V) by redesignating subpara7 graph (E) as subparagraph (D); and

8 (iv) by striking paragraph (3).

9 (4) UNITED STATES AGRICULTURAL COMMOD10 ITY.—Subsections (b) and (c) of section 1542 of the

11 Act are amended by striking ‘‘section 101(6)’’ each

12 place it appears and inserting ‘‘section 102(7)’’.

13 (5) REPORT.—The first sentence of section

14 1542(e)(2) of the Act is amended by striking ‘‘Not’’

15 and inserting ‘‘Subject to section 217 of the Depart16 ment of Agriculture Reorganization Act of 1994 (7

17 U.S.C. 6917), not’’.

18 (b) AGRICULTURAL FELLOWSHIP PROGRAM FOR

19 MIDDLE INCOME COUNTRIES, EMERGING DEMOCRACIES,

20 AND EMERGING MARKETS.—Section 1543 of the Act (7

21 U.S.C. 3293) is amended—

22 (1) in the section heading, by striking ‘‘MID23 DLE INCOME COUNTRIES AND EMERG24 ING DEMOCRACIES’’ and inserting ‘‘MID25 DLE INCOME COUNTRIES, EMERGING
175

•HR 2973 IH

1 DEMOCRACIES, AND EMERGING MAR2 KETS’’;

3 (2) in subsection (b), by adding at the end the

4 following:

5 ‘‘(5) EMERGING MARKET.—Any emerging mar6 ket, as defined in section 1542(f).’’; and

7 (3) in subsection (c)(1), by striking ‘‘food

8 needs’’ and inserting ‘‘food and fiber needs’’.

9 (c) CONFORMING AMENDMENTS.—

10 (1) Section 201(d)(1)(C)(ii) of the Agricultural

11 Trade Act of 1978 (7 U.S.C. 5621(d)(1)(C)(ii) is

12 amended by striking ‘‘emerging democracies’’ and

13 inserting ‘‘emerging markets’’.

14 (2) Section 202(d)(3)(B) of the Act (7 U.S.C.

15 5622(d)(3)(B)) is amended by striking ‘‘emerging

16 democracies’’ and inserting ‘‘emerging markets’’.

17 SEC. 450. IMPORT ASSISTANCE FOR CBI BENEFICIARY

18 COUNTRIES AND THE PHILIPPINES.

19 Section 583 of Public Law 100–202 (101 Stat. 1329–

20 182) is repealed.

21 SEC. 451. STUDIES, REPORTS, AND OTHER PROVISIONS.

22 (a) IN GENERAL.—Sections 1551 through 1555, sec23 tion 1559, and section 1560 of subtitle E of title XV of

24 the Food, Agriculture, Conservation, and Trade Act of

25 1990 (Public Law 101–624; 104 Stat. 3696) are repealed.
176

•HR 2973 IH

1 (b) LANGUAGE PROFICIENCY.—Section 1556 of the

2 Act (Public Law 101–624; 7 U.S.C. 5694 note) is amend3 ed by striking subsection (c).

4 SEC. 452. MONITORING COMPLIANCE WITH URUGUAY

5 ROUND AGREEMENTS.

6 Title I of the Agricultural Trade Act of 1978 (7

7 U.S.C. 5601 et seq.) as amended by section 432(b), is

8 amended by adding at the end the following:

9 ‘‘SEC. 107. MONITORING COMPLIANCE WITH URUGUAY

10 ROUND AGREEMENTS.

11 ‘‘The Secretary shall monitor compliance with foreign

12 countries with the provisions of the Agriculture Agreement

13 of the Uruguay Round of Multilateral Trade Negotiations

14 of the General Agreement on Tariffs and Trade. If the

15 Secretary determines that any foreign country has failed

16 to meet a commitment under the Agreement and that such

17 failure will adversely affect the ability to export United

18 States agriculture exports or products to the country, the

19 Secretary shall—

20 ‘‘(1) submit to the United States Trade Rep21 resentative a recommendation as to whether the

22 President should take action under any provision of

23 law; and

24 ‘‘(2) transmit a copy of the recommendation

25 and any decision on such recommendation to the
177

•HR 2973 IH

1 Committee on Agriculture and the Committee on

2 Ways and Means of the House of Representatives

3 and the Committee on Agriculture, Nutrition, and

4 Forestry and the Committee on Finance of the Sen5 ate.’’.

6 SEC. 453. LIMITATION ON DURUM WHEAT EXPORT SUB7 SIDIES.

8 Section 301(b) of the Agricultural Trade Act of 1978

9 (7 U.S.C. 5651(b)) is amended by adding at the end the

10 following:

11 ‘‘(9) SPECIAL RULE FOR NO. 1 AND NO. 2 HARD

12 AMBER DURUM WHEAT EXPORTS.—In any market13 ing year for which the projected stocks to use ratio

14 prepared by the Secretary of Agriculture for durum

15 wheat is less than or equal to 40 percent, or in any

16 calendar year in which there are in effect any trade

17 restrictions on the importation of durum wheat into

18 the United States, including quotas, ad valorem tar19 iffs, or tariff-rate quotas, the Commodity Credit

20 Corporation may not make available any assistance

21 (whether in the form of agricultural commodities,

22 cash payments, or other bonus) under this section

23 for the export of No. 1 and No. 2 Hard Amber

24 durum wheat.’’.
178

•HR 2973 IH

1 SEC. 454. MARKET PROMOTION PROGRAM.

2 Effective as of October 1, 1995, section 211(c)(1) of

3 the Agricultural Trade Act of 1978 (7 U.S.C. 5641(c)(1))

4 is amended—

5 (1) by striking ‘‘and’’ after ‘‘1991 through

6 1993’’; and

7 (2) by striking ‘‘through 1997,’’ and inserting

8 ‘‘through 1995, and not more than $100,000,000

9 for each of fiscal years 1996 through 2002,’’.

10 SEC. 455. EXPORT ENHANCEMENT PROGRAM.

11 (a) PRIORITY FUNDING FOR WHEAT FLOUR.—Sec12 tion 301 of the Agricultural Trade Act of 1978 (7 U.S.C.

13 5651) is amended—

14 (1) by redesignating subsections (d) through (g)

15 as subsections (e) through (h), respectively; and

16 (2) by adding the following:

17 ‘‘(d) PRIORITY FUNDING FOR WHEAT FLOUR.—As

18 determined by the Secretary to be consistent with the

19 United States obligations under the General Agreements

20 on Tariffs and Trade, the Commodity Credit Corporation

21 shall make funds available under this section on an annual

22 basis for the sale of wheat flour in sufficient amounts to

23 maintain the percentage of market share of world commer24 cial markets achieved by the United States wheat flour

25 industry during the Uruguay Round base period years of

26 1986 through 1988.’’.
179

•HR 2973 IH

1 (b) FUNDING LEVELS.—Effective as of October 1,

2 1995, section 301(e) of the Agricultural Trade Act of

3 1978 (7 U.S.C. 5651(e)), as redesignated by subsection

4 (a), is amended to read as follows:

5 ‘‘(f) FUNDING LEVELS.—The Commodity Credit

6 Corporation shall make available to carry out the program

7 established under this section not more than—

8 ‘‘(1) $350,000,000 for fiscal year 1996;

9 ‘‘(2) $350,000,000 for fiscal year 1997;

10 ‘‘(3) $500,000,000 for fiscal year 1998;

11 ‘‘(4) $550,000,000 for fiscal year 1999;

12 ‘‘(5) $579,000,000 for fiscal year 2000;

13 ‘‘(6) $478,000,000 for fiscal year 2001; and

14 ‘‘(7) $478,000,000 for fiscal year 2002.’’.

15 (c) HIGH VALUE AND VALUE-ADDED PRODUCTS.—

16 Section 303 of the Act (7 U.S.C. 5653) is repealed.

17 SEC. 456. MONITORING COMPLIANCE WITH SANITARY AND

18 PHYTOSANITARY MEASURES.

19 Section 414 of the Agricultural Trade Act of 1978

20 (7 U.S.C. 5674) is amended by adding at the end the fol21 lowing:

22 ‘‘(c) MONITORING COMPLIANCE WITH SANITARY

23 AND PHYTOSANITARY MEASURES.—The Secretary shall

24 monitor the compliance of World Trade Organization

25 member countries with the sanitary and phytosanitary
180

•HR 2973 IH

1 measures of the Agriculture Agreement of the Uruguay

2 Round of Multilateral Trade Negotiations of the General

3 Agreement on Tariffs and Trade. If the Secretary deter4 mines that any country has failed to meet the commitment

5 on sanitary and phytosanitary measures under the Agree6 ment, the Secretary shall—

7 ‘‘(1) take any appropriate action under any pro8 vision of law; and

9 ‘‘(2) report to the Committee on Agriculture

10 and the Committee on Ways and Means of the

11 House of Representatives and the Committee on Ag12 riculture, Nutrition, and Forestry and the Commit13 tee on Finance of the Senate—

14 ‘‘(A) that a country has failed to meet the

15 sanitary and phytosanitary commitments; and

16 ‘‘(B) any action taken by the Secretary.’’.

17 SEC. 457. AGRICULTURAL TRADE PROGRAM FLEXIBILITY.

18 (a) IN GENERAL.—If the Secretary determines by

19 June 1 of any fiscal year that, despite the best efforts

20 to do so, commodities or funds for that fiscal year for any

21 program under section 201, 202, 203, or 301 of the Agri22 cultural Trade Act of 1978 (7 U.S.C. 5601 et seq.) or

23 section 301(b)(2) of the Disaster Assistance Act (7 U.S.C.

24 1464 note) are not necessary to successfully accomplish

25 the objectives of that program, the Secretary shall use
181

•HR 2973 IH

1 those commodities and funds for any other program under

2 any of such sections, in a manner consistent with United

3 States’ obligations under the General Agreement on Tar4 iffs and Trade.

5 (b) LIMITATION.—In exercising the authority under

6 subsection (a), the Secretary shall ensure that any funds

7 or commodities made available for any other program does

8 not exceed 30 percent of the authorized level of the pro9 gram.

10 SEC. 458. SUNFLOWER SEED OIL AND COTTONSEED OIL EX11 PORT SALES.

12 Section 301(b)(2) of the Disaster Assistance Act of

13 1988 (7 U.S.C. 1464 note) is amended by striking ‘‘1991

14 through 1995’’ and inserting ‘‘1996 through 2002’’.

15 SEC. 459. FOREIGN MARKET DEVELOPMENT COOPERATOR

16 PROGRAM.

17 The Agricultural Trade Act of 1978 (7 U.S.C. 5601

18 et seq.) is amended by adding at the end the following:

19 ‘‘TITLE VII—FOREIGN MARKET

20 DEVELOPMENT COOPERATOR

21 PROGRAM

22 ‘‘SEC. 701. DEFINITION OF ELIGIBLE TRADE ORGANIZA23 TION.

24 ‘‘In this title, the term ‘eligible trade organization’

25 means a United States trade organization that—
182

•HR 2973 IH

1 ‘‘(1) promotes the export of 1 or more United

2 States agricultural commodities or products; and

3 ‘‘(2) does not have a business interest in or re4 ceive remuneration from specific sales of agricultural

5 commodities or products.

6 ‘‘SEC. 702. FOREIGN MARKET DEVELOPMENT COOPERATOR

7 PROGRAM.

8 ‘‘(a) IN GENERAL.—The Secretary shall establish

9 and, in cooperation with eligible trade organizations, carry

10 out a foreign market development cooperator program to

11 maintain and develop foreign markets for United States

12 agricultural commodities and products.

13 ‘‘(b) ADMINISTRATION.—Funds made available to

14 carry out this title shall be used only to provide—

15 ‘‘(1) cost-share assistance to an eligible trade

16 organization under a contract or agreement with the

17 organization; and

18 ‘‘(2) assistance for other costs that are nec19 essary or appropriate to carry out the foreign mar20 ket development program, including contingent li21 abilities that are not otherwise funded.

22 ‘‘SEC. 703. AUTHORIZATION OF APPROPRIATIONS.

23 ‘‘There are authorized to be appropriated to carry out

24 this title such sums as may be necessary for each of fiscal

25 years 1996 through 2002.’’.
183

•HR 2973 IH

1 Subtitle D—Dairy Export Programs

2 SEC. 461. AUTHORITY TO ASSIST IN ESTABLISHMENT AND

3 MAINTENANCE OF EXPORT TRADING COM4 PANY.

5 The Secretary of Agriculture shall, consistent with

6 the obligations of the United States as a member of the

7 World Trade Organization, provide such advice and assist8 ance of the United States dairy industry as may be nec9 essary to enable that industry to establish and maintain

10 an export trading company under the Export Trading

11 Company Act of 1982 (15 U.S.C. 4001 et seq.) for the

12 purpose of facilitating the international market develop13 ment for and exportation of dairy products produced in

14 the United States.

15 SEC. 462. STANDBY AUTHORITY TO DESIGNATE ENTITY TO

16 PROVIDE INTERNATIONAL MARKET DEVEL17 OPMENT AND EXPORT SERVICES.

18 (a) DESIGNATION OF ENTITY TO ASSIST IN THE

19 INTERNATIONAL MARKET DEVELOPMENT FOR AN EX20 PORT OF UNITED STATES DAIRY PRODUCTS.—If—

21 (1) the United States dairy industry has not es22 tablished an export trading company under the Ex23 port Trading Company Act of 1982 (15 U.S.C. 4001

24 et seq.) for the purpose of facilitating the inter25 national market development for an exportation of
184

•HR 2973 IH

1 dairy products produced in the United States on or

2 before January 1, 1997; or

3 (2) the quantity of exports of United States

4 dairy products during the 12-month period preced5 ing January 1, 1998, does not exceed the quantity

6 of exports of United States dairy products during

7 the 12-month period preceding January 1, 1997, by

8 1.5 billion pounds (milk equivalent, total solids

9 basis);

10 the Secretary of Agriculture is directed to indicate which

11 entity autonomous of the Government of the United States

12 is best suited to facilitate the international market devel13 opment for and exportation of United States dairy prod14 ucts.

15 (b) FUNDING OF EXPORT ACTIVITIES.—The Sec16 retary shall assist the entity in identifying sources of fund17 ing for the activities specified in subsection (a) from with18 in the dairy industry and elsewhere.

19 (c) APPLICATION OF SECTION.—This section shall

20 apply only during the period beginning on January 1,

21 1998 and ending on September 30, 2000.
185

•HR 2973 IH

1 SEC. 463. ASSURANCE OF EQUITABLE TREATMENT, FAIR

2 DEALING AND PROTECTION FROM DISCRIMI3 NATORY PRACTICES FOR UNITED STATES

4 PARTICIPANTS IN THE WORLD MARKET FOR

5 DAIRY PRODUCTS.

6 (a) PURPOSE.—The Secretary of Agriculture shall

7 carry out this section in such a manner as to promote the

8 efficient operation of Federal dairy programs and to as9 sure their consistency with the rights and obligations of

10 members of the World Trade Organization as well as the

11 rights and obligations of non-members of the World Trade

12 Organization under international law.

13 (b) EFFECTS OF CERTAIN DISCRIMINATORY PRAC14 TICES BY COUNTRIES OF ORIGIN.—In administering im15 port licenses for cheese and non-cheese dairy products, the

16 Secretary of Agriculture, in the event that it is shown to

17 the satisfaction of the Secretary that a country of origin

18 discriminates against a licensee with respect to either the

19 price or the availability of such a product—

20 (1) shall not impose any penalty with respect to

21 the failure of that licensee to use any portion of its

22 license amount during a quota year; and

23 (2) shall adjust the country of origin, if the

24 Secretary shall obtain prior consent for such an ad25 justment from the government of the exporting

26 country, as necessary to comply with the commit-
186

•HR 2973 IH

1 ments of the United States with respect to quan2 tities originating under the Uruguay Round Agree3 ments of the General Agreement on Tariffs and

4 Trade.

5 (c) EXPORT MONOPOLIES.—

6 (1) ENCOURAGEMENT OF FAIR DEALING.—The

7 Secretary shall not impose any penalty with respect

8 to the failure of a licensee to use any portion of its

9 license amount for such a product from a country of

10 origin that establishes, sanctions, or otherwise per11 mits an internationally integrated state trading en12 terprise or other export monopoly to control the ex13 port of the product concerned.

14 (2) PROTECTION AGAINST DISCRIMINATORY

15 PRACTICES.—With respect to any country of origin

16 that—

17 (A) exports cheese or non-cheese dairy

18 products through an internationally integrated

19 state trading enterprise or an export monopoly;

20 and

21 (B) designates an importer or importers to

22 receive a license for such products;

23 if, within 3 years of the discriminatory occurrence,

24 it is shown to the satisfaction of the Secretary that

25 the licensee has been discriminated against either as
187

•HR 2973 IH

1 to the price or availability of a product by the coun2 try of origin, its designated licensee, or any other

3 party or agent acting on behalf of the country of ori4 gin or its designated licensee, the Secretary shall re5 voke for a period of time not less than 3 years the

6 eligibility of the country of origin to designate a li7 censee for the import of cheese under license, except

8 that the Secretary shall obtain prior consent for

9 such revocation from the government of the export10 ing country as necessary to comply with the commit11 ments of the United States regarding quantities

12 originating under the Uruguay Round of the General

13 Agreement on Tariffs and Trade.

14 (3) ALLOCATION OF AVAILABLE LICENSES.—

15 Any rights to import made available as a result of

16 a revocation under paragraph (2) shall, during the

17 revocation period for such license, be distributed

18 among historical and other eligible licensees on the

19 basis of a rank-order lottery system determined ap20 propriate by the Secretary.

21 (d) EQUITABLE TREATMENT OF HISTORICAL LI22 CENSEES.—Consistent with the guarantees provided by

23 the United States to cheese exporting countries in the

24 memoranda of understanding executed under the auspices

25 of the Uruguay Round Agreements of the General Agree-
188

•HR 2973 IH

1 ment on Tariffs and Trade, any license for the import of

2 cheese held by an historical licensee shall not be reduced

3 below the amounts in effect as of December 15, 1993 with4 out the consent of the licensee, except in the event that

5 it is shown to the satisfaction of the Secretary of Agri6 culture that the licensee has engaged in fraudulent or

7 criminal activity in violation of the regulations governing

8 such licenses.

9 (e) DEFINITIONS.—For purposes of this section—

10 (1) the terms ‘‘country of origin’’, ‘‘designated

11 importer’’, ‘‘historical license’’, and ‘‘historical li12 censee’’ shall have the same meaning as when such

13 terms are used in sections 6.20 through 6.34 of title

14 7 of the Code of Federal Regulations; and

15 (2) the term ‘‘internationally integrated state

16 trading enterprise’’ means an entity which—

17 (A) is established or sanctioned by the

18 country of origin as a statutory export monop19 oly with sole sourcing and pricing rights for

20 dairy products destined for export;

21 (B) is part of a license system that pro22 hibits United States licensees from purchasing

23 cheese and non-cheese dairy products from the

24 vendor of choice in the country of origin, and

25 that requires licensees to acquire from the en-
189

•HR 2973 IH

1 tity or its captive subsidiary all or substantially

2 all of any cheese or non-cheese dairy product

3 for import from the country of origin; and

4 (C) owns or controls licenses for the im5 port of cheese or non-cheese dairy products

6 from the country of origin, where the prepon7 derance of such licenses are used for the import

8 of commodity-type cheese and other processing9 type dairy products.

10 (f) APPLICATION OF SECTION.—This section shall

11 apply on and after January 1, 1997.

12 SEC. 464. STUDY AND REPORT REGARDING POTENTIAL IM13 PACT OF URUGUAY ROUND ON PRICES, IN14 COME AND GOVERNMENT PURCHASES.

15 (a) STUDY.—The Secretary of Agriculture shall con16 duct a study, on a variety by variety of cheese basis, to

17 determine the potential impact on milk prices in the

18 United States, dairy producer income, and Federal dairy

19 program costs, of the allocation of additional cheese grant20 ed access to the United States as a result of the obliga21 tions of the United States as a member of the World

22 Trade Organization.

23 (b) REPORT.—Not later than March 31, 1997, the

24 Secretary shall report to the Committee on Agriculture of
190

•HR 2973 IH

1 the Senate and the House of Representatives the results

2 of the study conducted under this section.

3 (c) RULE OF CONSTRUCTION.—Any limitation im4 posed by Act of Congress on the conduct or completion

5 of studies or reports to Congress shall not apply to the

6 study and report required under this section unless such

7 limitation explicitly references this section in doing so.

8 TITLE V—EXTENSION OF

9 RESEARCH AUTHORITIES

10 SEC. 501. EXTENSION OF NATIONAL GENETIC RESOURCES

11 PROGRAM.

12 Section 1635(b) of the Food, Agriculture, Conserva13 tion, and Trade Act of 1990 (7 U.S.C. 5844(b)) is amend14 ed by striking ‘‘1995’’ and inserting ‘‘1997’’.

15 SEC. 502. EXTENSION OF NATIONAL AGRICULTURAL

16 WEATHER INFORMATION SYSTEM.

17 Section 1641(c) of the Food, Agriculture, Conserva18 tion, and Trade Act of 1990 (7 U.S.C. 5855(c)) is amend19 ed by striking ‘‘1995’’ and inserting ‘‘1997’’.
191

•HR 2973 IH

1 SEC. 503. EXTENSION OF RESEARCH PROGRAM REGARDING

2 PRODUCTION, PREPARATION, PROCESSING,

3 HANDLING, AND STORAGE OF AGRICUL4 TURAL PRODUCTS.

5 Section 1647(a) of the Food, Agriculture, Conserva6 tion, and Trade Act of 1990 (7 U.S.C. 5874(a)) is amend7 ed by striking ‘‘1995’’ and inserting ‘‘1997’’.

8 SEC. 504. EXTENSION OF WATER QUALITY RESEARCH, EDU9 CATION, AND COORDINATION.

10 Section 1481(d) of the Food, Agriculture, Conserva11 tion, and Trade Act of 1990 (7 U.S.C. 5501(d)) is amend12 ed by striking ‘‘1995’’ and inserting ‘‘1997’’.

13 SEC. 505. EXTENSION OF LIVESTOCK PRODUCT SAFETY

14 AND INSPECTION PROGRAM.

15 Section 1670(e) of the Food, Agriculture, Conserva16 tion, and Trade Act of 1990 (7 U.S.C. 5923(e)) is amend17 ed by striking ‘‘1995’’ and inserting ‘‘1997’’.

18 SEC. 506. EXTENSION OF MESQUITE RESEARCH PROGRAM.

19 Section 1672(d)(4) of the Food, Agriculture, Con20 servation, and Trade Act of 1990 (7 U.S.C. 5925(d)(4))

21 is amended by striking ‘‘1995’’ and inserting ‘‘1997’’.

22 SEC. 507. EXTENSION OF PRICKLY PEAR RESEARCH PRO23 GRAM.

24 Section 1672(e)(4) of the Food, Agriculture, Con25 servation, and Trade Act of 1990 (7 U.S.C. 5925(e)(4))

26 is amended by striking ‘‘1995’’ and inserting ‘‘1997’’.
192

•HR 2973 IH

1 SEC. 508. EXTENSION OF DEER TICK ECOLOGY AND RELAT2 ED RESEARCH PROGRAM.

3 Section 1672(i) of the Food, Agriculture, Conserva4 tion, and Trade Act of 1990 (7 U.S.C. 5925(i)) is amend5 ed by striking ‘‘1995’’ and inserting ‘‘1997’’.

6 SEC. 509. EXTENSION OF AGRICULTURAL TELECOMMUNI7 CATIONS PROGRAM.

8 Section 1673(h) of the Food, Agriculture, Conserva9 tion, and Trade Act of 1990 (7 U.S.C. 5926(h)) is amend10 ed by striking ‘‘1995’’ and inserting ‘‘1997’’.

11 SEC. 510. EXTENSION OF NATIONAL CENTERS FOR AGRI12 CULTURAL PRODUCT QUALITY RESEARCH.

13 Section 1675(g)(1) of the Food, Agriculture, Con14 servation, and Trade Act of 1990 (7 U.S.C. 5928(g)(1))

15 is amended by striking ‘‘1995’’ and inserting ‘‘1997’’.

16 SEC. 511. EXTENSION OF PILOT PROJECT TO COORDINATE

17 FOOD AND NUTRITION EDUCATION PRO18 GRAMS.

19 Section 1679(d) of the Food, Agriculture, Conserva20 tion, and Trade Act of 1990 (7 U.S.C. 5932(d)) is amend21 ed by striking ‘‘1995’’ and inserting ‘‘1997’’.

22 SEC. 512. EXTENSION OF ASSISTIVE TECHNOLOGY PRO23 GRAM FOR FARMERS WITH DISABILITIES.

24 (a) SPECIAL DEMONSTRATION GRANTS.—Subsection

25 (a)(6)(B) of section 1680 of the Food, Agriculture, Con-
193

•HR 2973 IH

1 servation, and Trade Act of 1990 (7 U.S.C. 5933) is

2 amended by striking ‘‘1996’’ and inserting ‘‘1997’’.

3 (b) NATIONAL GRANT FOR TECHNICAL ASSISTANCE,

4 TRAINING AND DISSEMINATION.—Subsection (b)(2) of

5 such section is amended by striking ‘‘1996’’ and inserting

6 ‘‘1997’’.

7 SEC. 513. EXTENSION OF NATIONAL RURAL INFORMATION

8 CENTER CLEARINGHOUSE.

9 Section 2381(e) Food, Agriculture, Conservation, and

10 Trade Act of 1990 (7 U.S.C. 3125b(e)) is amended by

11 striking ‘‘1995’’ and inserting ‘‘1997’’.

12 SEC. 514. EXTENSION OF INDIAN SUBSISTENCE FARMING

13 DEMONSTRATION GRANT PROGRAM.

14 Section 939 of the Food, Agriculture, Conservation,

15 and Trade Act Amendments of 1991 (7 U.S.C. 5930 note)

16 is amended by striking ‘‘1995’’ and inserting ‘‘1997’’.

17 SEC. 515. EXTENSION OF JOINT COUNCIL ON FOOD AND AG18 RICULTURAL SCIENCES.

19 Section 1407(a) of the National Agricultural Re20 search, Extension, and Teaching Policy Act of 1977 (7

21 U.S.C. 3122(a)) is amended by striking ‘‘1995’’ and in22 serting ‘‘1997’’.
194

•HR 2973 IH

1 SEC. 516. EXTENSION OF NATIONAL AGRICULTURAL RE2 SEARCH AND EXTENSION USERS ADVISORY

3 BOARD.

4 Section 1408(a) of the National Agricultural Re5 search, Extension, and Teaching Policy Act of 1977 (7

6 U.S.C. 3123(a)) is amended by striking ‘‘1995’’ and in7 serting ‘‘1997’’.

8 SEC. 517. EXTENSION OF PROGRAM OF GRANTS AND FEL9 LOWSHIPS FOR FOOD AND AGRICULTURAL

10 SCIENCES EDUCATION.

11 Section 1417(i) of the National Agricultural Re12 search, Extension, and Teaching Policy Act of 1977 (7

13 U.S.C. 3152(i)) is amended by striking ‘‘1995’’ and in14 serting ‘‘1997’’.

15 SEC. 518. EXTENSION OF GRANT PROGRAM FOR RESEARCH

16 ON THE PRODUCTION AND MARKETING OF

17 ALCOHOLS AND INDUSTRIAL HYDRO18 CARBONS FROM AGRICULTURAL COMMOD19 ITIES AND FOREST PRODUCTS.

20 Section 1419(d) of the National Agricultural Re21 search, Extension, and Teaching Policy Act of 1977 (7

22 U.S.C. 3154(d)) is amended by striking ‘‘1995’’ and in23 serting ‘‘1997’’.
195

•HR 2973 IH

1 SEC. 519. EXTENSION OF FOOD SCIENCE AND NUTRITION

2 RESEARCH CENTER.

3 Section 1424(d) of the National Agricultural Re4 search, Extension, and Teaching Policy Act of 1977 (7

5 U.S.C. 3174(d)) is amended by striking ‘‘1995’’ and in6 serting ‘‘1997’’.

7 SEC. 520. EXTENSION OF NUTRITION EDUCATION PRO8 GRAM.

9 Section 1425(c)(3) of the National Agricultural Re10 search, Extension, and Teaching Policy Act of 1977 (7

11 U.S.C. 3175(c)(3)) is amended by striking ‘‘fiscal year

12 1995’’ and inserting ‘‘each of the fiscal years 1995

13 through 1997’’.

14 SEC. 521. EXTENSION OF ANIMAL HEALTH SCIENCE RE15 SEARCH ADVISORY BOARD.

16 Section 1432(a) of the National Agricultural Re17 search, Extension, and Teaching Policy Act of 1977 (7

18 U.S.C. 3194(a)) is amended by striking ‘‘1995’’ and in19 serting ‘‘1997’’.

20 SEC. 522. EXTENSION OF ANIMAL HEALTH AND DISEASE

21 RESEARCH PROGRAMS.

22 Section 1433(a) of the National Agricultural Re23 search, Extension, and Teaching Policy Act of 1977 (7

24 U.S.C. 3195(a)) is amended by striking ‘‘1995’’ and in25 serting ‘‘1997’’.
196

•HR 2973 IH

1 SEC. 523. EXTENSION OF RESEARCH ON NATIONAL OR RE2 GIONAL ANIMAL HEALTH OR DISEASE PROB3 LEMS.

4 Section 1434(a) of the National Agricultural Re5 search, Extension, and Teaching Policy Act of 1977 (7

6 U.S.C. 3196(a)) is amended by striking ‘‘1995’’ and in7 serting ‘‘1997’’.

8 SEC. 524. EXTENSION OF RESIDENT INSTRUCTION PRO9 GRAM AT 1890 LAND-GRANT COLLEGES.

10 Section 1446(f) of the National Agricultural Re11 search, Extension, and Teaching Policy Act of 1977 (7

12 U.S.C. 3222a(f)) is amended by striking ‘‘1995’’ and in13 serting ‘‘1997’’.

14 SEC. 525. EXTENSION OF GRANT PROGRAM TO UPGRADE

15 AGRICULTURAL AND FOOD SCIENCES FACILI16 TIES AT 1890 LAND-GRANT COLLEGES.

17 Section 1447(b) of the National Agricultural Re18 search, Extension, and Teaching Policy Act of 1977 (7

19 U.S.C. 3222b(b)) is amended by striking ‘‘1995’’ and in20 serting ‘‘1997’’.

21 SEC. 526. EXTENSION OF NATIONAL RESEARCH AND TRAIN22 ING CENTENNIAL CENTERS.

23 Section 1448 of the National Agricultural Research,

24 Extension, and Teaching Policy Act of 1977 (7 U.S.C.

25 3222c) is amended—
197

•HR 2973 IH

1 (1) in subsection (a)(1), by striking ‘‘1995’’ and

2 inserting ‘‘1997’’; and

3 (2) in subsection (f), by striking ‘‘1995’’ and

4 inserting ‘‘1997’’.

5 SEC. 527. EXTENSION OF MISCELLANEOUS RESEARCH PRO6 GRAMS.

7 Section 1463 of the National Agricultural Research,

8 Extension, and Teaching Policy Act of 1977 (7 U.S.C.

9 3311) is amended by striking ‘‘1995’’ both places it ap10 pears and inserting ‘‘1997’’.

11 SEC. 528. EXTENSION OF EXTENSION EDUCATION PRO12 GRAM.

13 Section 1464 of the National Agricultural Research,

14 Extension, and Teaching Policy Act of 1977 (7 U.S.C.

15 3312) is amended by striking ‘‘fiscal year 1995’’ and in16 serting ‘‘each of the fiscal years 1995 through 1997’’.

17 SEC. 529. EXTENSION OF RESEARCH AND PILOT PROJECT

18 FOR THE DEVELOPMENT OF SUPPLEMENTAL

19 AND ALTERNATIVE CROPS.

20 Section 1473D(a) of the National Agricultural Re21 search, Extension, and Teaching Policy Act of 1977 (7

22 U.S.C. 3319d(a)) is amended by striking ‘‘1995’’ and in23 serting ‘‘1997’’.
198

•HR 2973 IH

1 SEC. 530. EXTENSION OF AQUACULTURE ASSISTANCE PRO2 GRAMS.

3 (a) AQUACULTURE RESEARCH FACILITIES.—Section

4 1476(b) of the National Agricultural Research, Extension,

5 and Teaching Policy Act of 1977 (7 U.S.C. 3323(b)) is

6 amended by striking ‘‘1995’’ and inserting ‘‘1997’’.

7 (b) RESEARCH AND EXTENSION.—Section 1477 of

8 such Act (7 U.S.C. 3324) is amended by striking ‘‘1995’’

9 and inserting ‘‘1997’’.

10 SEC. 531. EXTENSION OF RANGELAND RESEARCH PRO11 GRAM.

12 (a) ADVISORY BOARD.—Section 1482(a) of the Na13 tional Agricultural Research, Extension, and Teaching

14 Policy Act of 1977 (7 U.S.C. 3335(a)) is amended by

15 striking ‘‘1995’’ and inserting ‘‘1997’’.

16 (b) RESEARCH PROGRAM.—Section 1483(a) of such

17 Act (7 U.S.C. 3336(a)) is amended by striking ‘‘1995’’

18 and inserting ‘‘1997’’.

19 SEC. 532. EXTENSION OF DAIRY GOAT RESEARCH PRO20 GRAM.

21 Section 1432(b)(5) of the Agriculture and Food Act

22 of 1981 (7 U.S.C. 3222 note) is amended by striking

23 ‘‘1995’’ and inserting ‘‘1997’’.
199

•HR 2973 IH

1 SEC. 533. EXTENSION OF CONSTRUCTION PROGRAM FOR

2 FEDERAL AGRICULTURAL RESEARCH FACILI3 TIES.

4 Section 1431 of the Food Security Act of 1985 (Pub5 lic Law 99–198; 99 Stat. 1556) is amended by striking

6 ‘‘1995’’ both places it appears and inserting ‘‘1997’’.

7 SEC. 534. EXTENSION OF THE COMPETITIVE, SPECIAL, AND

8 FACILITIES RESEARCH GRANT ACT.

9 The Competitive, Special, and Facilities Research

10 Grant Act (7 U.S.C. 450i) is amended in subsection

11 (b)(10) by striking ‘‘fiscal year 1995’’ and inserting ‘‘each

12 of the fiscal years 1995 through 1997’’.

13 SEC. 535. EXTENSION OF THE RESEARCH FACILITIES ACT.

14 Section 4(a) of the Research Facilities Act (7 U.S.C.

15 390c(a)) is amended by striking ‘‘1995’’ and inserting

16 ‘‘1997’’.

17 SEC. 536. EXTENSION OF CRITICAL AGRICULTURAL MATE18 RIALS RESEARCH.

19 Section 16(a) of the Critical Agricultural Materials

20 Act (7 U.S.C. 178n(a)) is amended by striking ‘‘1995’’

21 and inserting ‘‘1997’’.

22 SEC. 537. EXTENSION OF PSEUDORABIES ERADICATION

23 PROGRAM.

24 Section 2506(d) of the Food, Agriculture, Conserva25 tion, and Trade Act of 1990 (21 U.S.C. 114i(d)) is

26 amended by striking ‘‘1995’’ and inserting ‘‘1997’’.
200

•HR 2973 IH

1 TITLE VI—ISSUANCE OF ORDERS

2 FOR PROMOTION, RESEARCH,

3 AND INFORMATION ACTIVI4 TIES REGARDING AGRICUL5 TURAL COMMODITIES

6 SEC. 601. SHORT TITLE.

7 This title may be cited as the ‘‘Commodity Pro8 motion, Research and Information Act of 1996’’.

9 SEC. 602. FINDINGS AND PURPOSE.

10 (a) FINDINGS.—Congress finds the following:

11 (1) The production of agricultural commodities

12 plays a significant role in the economy of the United

13 States. Thousands of producers in the United States

14 are involved in the production of agricultural com15 modities, and such commodities are consumed by

16 millions of people throughout the United States and

17 foreign countries.

18 (2) Agricultural commodities must be of high

19 quality, readily available, handled properly, and mar20 keted efficiently to ensure that consumers have an

21 adequate supply.

22 (3) The maintenance and expansion of existing

23 markets and the development of new markets for ag24 ricultural commodities through generic promotion,

25 research, and information programs are vital to the
201

•HR 2973 IH

1 welfare of persons engaged in the production, mar2 keting, and consumption of such commodities, as

3 well as to the general economy of the United States.

4 (4) Generic promotion, research, and informa5 tion activities for agricultural commodities play a

6 unique role in advancing the demand for such com7 modities, since such activities increase the total mar8 ket for a product to the benefit of consumers and all

9 producers. These generic activities complement

10 branded advertising initiatives, which are aimed at

11 increasing the market share of individual competi12 tors, and are of particular benefit to small producers

13 who lack the resources or market power to advertise

14 on their own. These generic activities do not impede

15 the branded advertising efforts of individual firms,

16 but instead increase general market demand for an

17 agricultural commodity using methods that individ18 ual companies do not have the incentive to employ.

19 (5) Generic promotion, research, and informa20 tion activities for agricultural commodities, paid by

21 the producers and others in the industry who reap

22 the benefits of such activities, provide a unique op23 portunity for producers to inform consumers about

24 a particular agricultural commodity.
202

•HR 2973 IH

1 (6) It is important to ensure that generic pro2 motion, research, and information activities for agri3 cultural commodities be carried out in an effective

4 and coordinated manner designed to strengthen the

5 position of the commodities in the marketplace and

6 to maintain and expand their markets and uses.

7 Independent evaluation of the effectiveness of the

8 generic promotion activities of these programs will

9 assist the Secretary of Agriculture and the Congress

10 in ensuring that these objectives are met.

11 (7) The cooperative development, financing, and

12 implementation of a coordinated national program of

13 research, promotion, and information regarding agri14 cultural commodities are necessary to maintain and

15 expand existing markets and to develop new markets

16 for these commodities.

17 (8) Agricultural commodities move in interstate

18 and foreign commerce, and agricultural commodities

19 and their products that do not move in such chan20 nels of commerce directly burden or affect interstate

21 commerce in agricultural commodities and their

22 products.

23 (b) PURPOSE.—It is the purpose of this title to au24 thorize the establishment, through the exercise by the Sec25 retary of Agriculture of the authority provided in this title,
203

•HR 2973 IH

1 of an orderly program for developing, financing and carry2 ing out an effective, continuous, and coordinated program

3 of generic promotion, research, and information regarding

4 agricultural commodities designed to—

5 (1) strengthen the position of agricultural com6 modity industries in the marketplace;

7 (2) maintain and expand existing domestic and

8 foreign markets and uses for agricultural commod9 ities; and

10 (3) develop new markets and uses for agricul11 tural commodities.

12 (c) RULE OF CONSTRUCTION.—This title shall not be

13 construed to provide for the control of production or other14 wise limit the right of any person to produce, to handle,

15 or to import an agricultural commodity.

16 SEC. 603. DEFINITIONS.

17 In this title:

18 (1) AGRICULTURAL COMMODITY.—The term

19 ‘‘agricultural commodity’’ means—

20 (A) agricultural, horticultural, viticultural,

21 and dairy products;

22 (B) livestock and the products of livestock;

23 (C) the products of poultry and bee rais24 ing;

25 (D) the products of forestry;
204

•HR 2973 IH

1 (E) other commodities raised or produced

2 on farms, as determined appropriate by the

3 Secretary; and

4 (F) products processed or manufactured

5 from products specified in the preceding sub6 paragraphs, as determined appropriate by the

7 Secretary.

8 (2) BOARD.—The term ‘‘board’’ means a board

9 established under an order issued under section 604.

10 (3) CONFLICT OF INTEREST.—The term ‘‘con11 flict of interest’’ means a situation in which a mem12 ber or employee of a board has a direct or indirect

13 financial interest in a person that performs a service

14 for, or enters into a contract with, a board for any15 thing of economic value.

16 (4) DEPARTMENT.—The term ‘‘Department’’

17 means the Department of Agriculture.

18 (5) FIRST HANDLER.—The term ‘‘first han19 dler’’ means the first person who buys or takes pos20 session of an agricultural commodity from a pro21 ducer for marketing. If a producer markets the agri22 cultural commodity directly to consumers, the pro23 ducer shall be considered to be the first handler with

24 respect to the agricultural commodity grown by the

25 producer.
205

•HR 2973 IH

1 (6) HANDLE.—The term ‘‘handle’’ means re2 ceipt of a agricultural commodity by a first handler,

3 including an agricultural commodity produced by a

4 first handler.

5 (7) IMPORTER.—The term ‘‘importer’’ means

6 any person who imports an agricultural commodity

7 from outside of the United States for sale in the

8 United States as a principal or as an agent, broker,

9 or consignee or any person.

10 (8) INFORMATION.—The term ‘‘information’’

11 means information and programs that are designed

12 to increase efficiency in processing and the develop13 ment of new markets, marketing strategies, in14 creased marketing efficiency, and activities to en15 hance the image of agricultural commodities on a

16 national or international basis.

17 (9) MARKET.—The term ‘‘market’’ means to

18 sell or to otherwise dispose of an agricultural com19 modity in interstate, foreign, or intrastate com20 merce.

21 (10) ORDER.—The term ‘‘order’’ means an

22 order issued under section 604.

23 (11) PERSON.—The term ‘‘person’’ means any

24 individual, group of individuals, partnership, cor-
206

•HR 2973 IH

1 poration, association, cooperative, or any other legal

2 entity.

3 (12) PRODUCER.—The term ‘‘producer’’ means

4 any person engaged in the production and sale of an

5 agricultural commodity in the United States and

6 who owns, or shares the ownership and risk of loss

7 of, the agricultural commodity.

8 (13) PROMOTION.—The term ‘‘promotion’’

9 means any action taken by a board under an order,

10 including paid advertising, to present a favorable

11 image of an agricultural commodity to the public to

12 improve the competitive position of the agricultural

13 commodity in the marketplace and to stimulate sales

14 of the agricultural commodity.

15 (14) RESEARCH.—The term ‘‘research’’ means

16 any type of test, study, or analysis designed to ad17 vance the image, desirability, use, marketability, pro18 duction, product development, or quality of an agri19 cultural commodity.

20 (15) SECRETARY.—The term ‘‘Secretary’’

21 means the Secretary of Agriculture.

22 (16) STATE.—The term ‘‘State’’ means any of

23 the States, the District of Columbia, the Common24 wealth of Puerto Rico, or any territory or possession

25 of the United States.
207

•HR 2973 IH

1 (17) SUSPEND.—The term ‘‘suspend’’ means to

2 issue a rule under section 553 of title 5, United

3 States Code, to temporarily prevent the operation of

4 an order during a particular period of time specified

5 in the rule.

6 (18) TERMINATE.—The term ‘‘terminate’’

7 means to issue a rule under section 553 of title 5,

8 United States Code, to cancel permanently the oper9 ation of an order beginning on a date certain speci10 fied in the rule.

11 (19) UNITED STATES.—The term ‘‘United

12 States’’ means collectively the several States, the

13 District of Columbia, the Commonwealth of Puerto

14 Rico and the territories and possessions of the Unit15 ed States.

16 SEC. 604. ISSUANCE OF ORDERS.

17 (a) ISSUANCE AUTHORIZED.—

18 (1) IN GENERAL.—To effectuate the purpose of

19 this title, the Secretary may issue, and amend from

20 time to time, orders applicable to—

21 (A) the producers of an agricultural com22 modity;

23 (B) the first handlers of the agricultural

24 commodity and other persons in the marketing

25 chain as appropriate; and
208

•HR 2973 IH

1 (C) the importers of the agricultural com2 modity, if imports of the agricultural commod3 ity are subject to assessment under section

4 606(f).

5 (2) NATIONAL SCOPE.—Each order issued

6 under this section shall be national in scope.

7 (b) PROCEDURE FOR ISSUANCE.—

8 (1) RECEIPT OR DEVELOPMENT OF PROPOSED

9 ORDER.—A proposed order with regard to an agri10 cultural commodity may be—

11 (A) prepared by the Secretary at any time

12 with respect to the agricultural commodity; or

13 (B) submitted to the Secretary by—

14 (i) an association of producers of the

15 agricultural commodity; or

16 (ii) any other person that may be af17 fected by the issuance of an order with re18 spect to the agricultural commodity.

19 (2) CONSIDERATION OF PROPOSED ORDER.—If

20 the Secretary determines that a proposed order is

21 consistent with and will effectuate the purpose of

22 this title, the Secretary shall publish the proposed

23 order in the Federal Register and give due notice

24 and opportunity for public comment on the proposed

25 order.
209

•HR 2973 IH

1 (3) EXISTENCE OF OTHER ORDERS.—In decid2 ing whether a proposal for an order is consistent

3 with and will effectuate the purpose of this title, the

4 Secretary may consider the existence of other Fed5 eral promotion, research, and information programs

6 or orders issued or developed pursuant to any other

7 law.

8 (4) PREPARATION OF FINAL ORDER.—After no9 tice and opportunity for public comment under para10 graph (2) regarding a proposed order, the Secretary

11 shall take into consideration the comments received

12 in preparing a final order, the Secretary shall ensure

13 that the final order is in conformity with the terms,

14 conditions, and requirements of this title.

15 (c) ISSUANCE AND EFFECTIVE DATE.—If the Sec16 retary determines that the final order developed with re17 gard to an agricultural commodity is consistent with and

18 will effectuate the purpose of this title, the Secretary shall

19 issue the final order. Except in the case of an order for

20 which an initial referendum is conducted under section

21 611(a), the final order shall be issued and become effective

22 not later than 270 days after the publication of the pro23 posed order that was the basis for the final order.
210

•HR 2973 IH

1 (d) AMENDMENTS.—From time to time the Secretary

2 may amend any order, consistent with the requirements

3 of section 613.

4 SEC. 605. REQUIRED TERMS IN ORDERS.

5 (a) IN GENERAL.—Each order shall contain the

6 terms and conditions specified in this section.

7 (b) BOARD.—

8 (1) ESTABLISHMENT.—Each order shall estab9 lish a board to carry out a program of generic pro10 motion, research, and information regarding the ag11 ricultural commodity covered by the order intended

12 to effectuate the purpose of this title.

13 (2) BOARD MEMBERSHIP.—

14 (A) NUMBER OF MEMBERS.—Each board

15 shall consist of the number of members consid16 ered by the Secretary, in consultation with the

17 agricultural commodity industry involved, to be

18 appropriate to administer the order. In addition

19 to members, the Secretary may also provide for

20 alternates on the board.

21 (B) APPOINTMENT.—The Secretary shall

22 appoint the members and any alternates of a

23 board from among producers of the agricultural

24 commodity and first handlers and others in the

25 marketing chain as appropriate. If imports of
211

•HR 2973 IH

1 the agricultural commodity covered by an order

2 are subject to assessment under section 606(f),

3 the Secretary shall also appoint importers as

4 members of the board and as alternatives if al5 ternates are included on the board. The Sec6 retary may appoint one or more members of the

7 general public to each board.

8 (C) NOMINATIONS.—The Secretary may

9 make appointments from nominations made

10 pursuant to the method set forth in the order.

11 (D) GEOGRAPHICAL REPRESENTATION.—

12 To ensure fair and equitable representation of

13 the agricultural commodity industry covered by

14 an order, the composition of each board shall

15 reflect the geographical distribution of the pro16 duction of the agricultural commodity involved

17 and the quantity or value of the agricultural

18 commodity imported into the United States.

19 (3) REAPPORTIONMENT OF BOARD MEMBER20 SHIP.—In accordance with rules issued by the Sec21 retary, at least once in each five-year period, but not

22 more frequently than once in each three-year period,

23 each board shall—

24 (A) review the geographical distribution of

25 the production of the agricultural commodity in
212

•HR 2973 IH

1 the United States covered by the order involved

2 and the quantity or value of the agricultural

3 commodity imported into the United States;

4 and

5 (B) if warranted, recommend to the Sec6 retary the reapportionment of the board mem7 bership to reflect changes in the geographical

8 distribution of the production of the agricul9 tural commodity and the quantity or value of

10 the imported agricultural commodity.

11 (4) NOTICE.—

12 (A) VACANCIES.—Each order shall provide

13 for notice of board vacancies to the agricultural

14 commodity industry involved.

15 (B) MEETINGS.—Each board shall provide

16 the Secretary with prior notice of meetings of

17 the board to permit the Secretary, or a des18 ignated representative of the Secretary, to at19 tend the meetings.

20 (5) TERM OF OFFICE.—

21 (A) IN GENERAL.—The members and any

22 alternates of a board shall serve for a term of

23 three years, except that the members and any

24 alternates initially appointed to a board shall
213

•HR 2973 IH

1 serve terms of not more than two, three, and

2 four years, as specified by the order.

3 (B) LIMITATION ON CONSECUTIVE

4 TERMS.—A member or alternate may serve not

5 more than two consecutive terms.

6 (C) CONTINUATION OF TERM.—Notwith7 standing subparagraph (B), each member or al8 ternate shall continue to serve until a successor

9 is appointed by the Secretary.

10 (D) VACANCIES.—A vacancy arising before

11 the expiration of a term of office of an incum12 bent member or alternate of a board shall be

13 filled in a manner provided for in the order.

14 (6) COMPENSATION.—

15 (A) IN GENERAL.—Members and any al16 ternates of a board shall serve without com17 pensation.

18 (B) TRAVEL EXPENSES.—If approved by a

19 board, members or alternates shall be reim20 bursed for reasonable travel expenses, which

21 may include a per diem allowance or actual sub22 sistence incurred while away from their homes

23 or regular places of business in the performance

24 of services for the board.
214

•HR 2973 IH

1 (c) POWERS AND DUTIES OF A BOARD.—Each order

2 shall specify the powers and duties of the board estab3 lished under the order, which shall include the power and

4 duty—

5 (1) to administer the order in accordance with

6 its terms and conditions and to collect assessments;

7 (2) to develop and recommend to the Secretary

8 for approval such bylaws as may be necessary for

9 the functioning of the board and such rules as may

10 be necessary to administer the order, including ac11 tivities authorized to be carried out under the order;

12 (3) to meet, organize, and select from among

13 members of the board a chairperson, other officers,

14 and committees and subcommittees, as the board de15 termines to be appropriate;

16 (4) to employ persons, other than the members,

17 as the board considers necessary to assist the board

18 in carrying out its duties, and to determine the com19 pensation and specify the duties of the persons;

20 (5) subject to subsection (e), to develop and

21 carry out generic promotion, research, and informa22 tion activities relating to the agricultural commodity

23 covered by the order;

24 (6) to prepare and submit for the approval of

25 the Secretary, before the beginning of each fiscal
215

•HR 2973 IH

1 year, rates of assessment under section 607 and an

2 annual budget of the anticipated expenses to be in3 curred in the administration of the order, including

4 the probable cost of each promotion, research, and

5 information activity proposed to be developed or car6 ried out by the board;

7 (7) to borrow funds necessary for the start-up

8 expenses of the order;

9 (8) subject to subsection (f), to enter into con10 tracts or agreements to develop and carry out ge11 neric promotion, research, and information activities

12 relating to the agricultural commodity covered by

13 the order;

14 (9) to pay the cost of the activities with assess15 ments collected under section 607, earnings from in16 vested assessments, and other funds;

17 (10) to keep records that accurately reflect the

18 actions and transactions of the board, to keep and

19 report minutes of each meeting of the board to the

20 Secretary, and to furnish the Secretary with any in21 formation or records the Secretary requests;

22 (11) to receive, investigate, and report to the

23 Secretary complaints of violations of the order; and
216

•HR 2973 IH

1 (12) to recommend to the Secretary such

2 amendments to the order as the board considers ap3 propriate.

4 (d) PROHIBITED ACTIVITIES.—A board may not en5 gage in, and shall prohibit the employees and agents of

6 the board from engaging in—

7 (1) any action that would be a conflict of inter8 est;

9 (2) any action undertaken for the purpose of in10 fluencing any legislation or governmental action or

11 policy other than recommending to the Secretary

12 amendments to the order; and

13 (3) any advertising, including promotion, re14 search, and information activities authorized to be

15 carried out under the order, that may be false or

16 misleading or disparaging to another agricultural

17 commodity.

18 (e) ACTIVITIES AND BUDGETS.—

19 (1) SUBMISSION TO SECRETARY.—Each order

20 shall require the board established under the order

21 to submit to the Secretary for approval plans and

22 projects for promotion, research, or information re23 lating to the agricultural commodity covered by the

24 order.
217

•HR 2973 IH

1 (2) BUDGETS.—Each order shall require the

2 board established under the order to submit to the

3 Secretary for approval a budget of its anticipated

4 annual expenses and disbursements to be paid to ad5 minister the order. The budget shall be submitted

6 before the beginning of a fiscal year and as fre7 quently as may be necessary after the beginning of

8 the fiscal year. Each order shall also require that the

9 Secretary be reimbursed for all expenses incurred by

10 the Secretary in the implementation, administration,

11 and supervision of the order, including all referenda

12 costs incurred in connection with the order.

13 (3) INCURRING EXPENSES.—A board may incur

14 the expenses described in paragraph (2) and other

15 expenses for the administration, maintenance, and

16 functioning of the board as authorized by the Sec17 retary.

18 (4) PAYING EXPENSES.—Expenses incurred

19 under paragraph (3) shall be paid by a board using

20 assessments collected under section 607, earnings

21 obtained from assessments, and other income of the

22 board. Any funds borrowed by the board shall be ex23 pended only for start-up costs and capital outlays.

24 (5) LIMITATION ON SPENDING.—For fiscal

25 years beginning three or more years after the date
218

•HR 2973 IH

1 of the establishment of a board, the board may not

2 expend for administration (except for reimburse3 ments to the Secretary required under paragraph

4 (2)), maintenance, and functioning of the board in

5 a fiscal year an amount that exceeds 15 percent of

6 the assessment and other income received by the

7 board for the fiscal year.

8 (f) CONTRACTS AND AGREEMENTS.—

9 (1) IN GENERAL.—Each order shall provide

10 that, with the approval of the Secretary, the board

11 established under the order may—

12 (A) enter into contracts and agreements to

13 carry out generic promotion, research, and in14 formation activities relating to the agricultural

15 commodity covered by the order, including con16 tracts and agreements with producer associa17 tions or other entities as considered appropriate

18 by the Secretary; and

19 (B) may pay the cost of approved generic

20 promotion, research, and information activities

21 using assessments collected under section 607,

22 earnings obtained from assessments, and other

23 income of the board.
219

•HR 2973 IH

1 (2) REQUIREMENTS.—Each contract or agree2 ment shall provide that any person who enters into

3 the contract or agreement with the board shall—

4 (A) develop and submit to the board a pro5 posed activity together with a budget that speci6 fies the cost to be incurred to carry out the ac7 tivity;

8 (B) keep accurate records of all of its

9 transactions relating to the contract or agree10 ment;

11 (C) account for funds received and ex12 pended in connection with the contract or

13 agreement;

14 (D) make periodic reports to the board of

15 activities conducted under the contract or

16 agreement; and

17 (E) make such other reports, as the board

18 or the Secretary considers relevant.

19 (g) RECORDS OF BOARD.—

20 (1) IN GENERAL.—Each order shall require the

21 board established under the order—

22 (A) to maintain such records as the Sec23 retary may require and to make the records

24 available to the Secretary for inspection and

25 audit;
220

•HR 2973 IH

1 (B) to collect and submit to the Secretary,

2 at any time the Secretary may specify, any in3 formation the Secretary may request; and

4 (C) to account for the receipt and dis5 bursement of all funds in the possession, or

6 under the control of, the board.

7 (2) AUDITS.—Each order shall require the

8 board established under the order to have—

9 (A) its records audited by an independent

10 auditor at the end of each fiscal year; and

11 (B) a report of the audit submitted di12 rectly to the Secretary.

13 (h) PERIODIC EVALUATION.—Each order shall re14 quire the board established under the order to provide for

15 the independent evaluation of all generic promotion, re16 search, and information activities undertaken under the

17 order, at such the intervals as the Secretary shall pre18 scribe. Such evaluations, or summaries thereof, shall be

19 made available to the public. The costs of preparing and

20 disseminating the evaluations or summaries shall be paid

21 from assessments collected under section 607.

22 (i) BOOKS AND RECORDS OF PERSONS COVERED BY

23 ORDER.—

24 (1) IN GENERAL.—Each order shall require

25 that producers, first handlers and other persons in
221

•HR 2973 IH

1 the marketing chain as appropriate, and importers

2 covered by the order shall—

3 (A) maintain records sufficient to ensure

4 compliance with the order and regulations;

5 (B) submit to the board established under

6 the order any information required by the board

7 to carry out its responsibilities under the order;

8 and

9 (C) make the records available, during nor10 mal business hours, for inspection by employees

11 or agents of the board or the Department, in12 cluding any records necessary to verify informa13 tion required under subparagraph (A).

14 (2) TIME REQUIREMENT.—Any record required

15 under paragraph (1) to be maintained shall be main16 tained for such time period as the Secretary may

17 prescribe.

18 (3) OTHER INFORMATION.—The Secretary may

19 use, and may authorize the board to use under this

20 title, information regarding persons subject to an

21 order that is accumulated by the Department under

22 any other law.

23 (4) CONFIDENTIALITY OF INFORMATION.—

24 (A) IN GENERAL.—Except as otherwise

25 provided in this title, all information obtained
222

•HR 2973 IH

1 under paragraph (1) or as part of a referendum

2 under section 611 shall be kept confidential by

3 all officers, employees, and agents of the De4 partment and of the board.

5 (B) DISCLOSURE.—Information referred to

6 in subparagraph (A) may be disclosed only if—

7 (i) the Secretary considers the infor8 mation relevant; and

9 (ii) the information is revealed in a

10 judicial proceeding or administrative hear11 ing brought at the direction or on the re12 quest of the Secretary or to which the Sec13 retary or any officer of the Department is

14 a party.

15 (C) OTHER EXCEPTIONS.—This paragraph

16 shall not be construed to prohibit the issuance

17 of general statements based upon reports or on

18 information relating to a number of persons

19 subject to an order if the statements do not re20 veal the information furnished by the person, or

21 the publication, by direction of the Secretary, of

22 the name of any person violating any order and

23 a statement of the particular provisions of the

24 order violated by the person.
223

•HR 2973 IH

1 (D) PENALTY.—Any person who willfully

2 violates the provisions of this subsection shall

3 be subject, on conviction, to a fine of not more

4 than $1,000 or to imprisonment for not more

5 than 1 year, or both.

6 (5) WITHHOLDING INFORMATION.—This sub7 section shall not be construed to authorize the with8 holding of information from Congress.

9 SEC. 606. PERMISSIVE TERMS IN ORDERS.

10 (a) EXEMPTIONS.—An order issued under this title

11 may contain authority for the Secretary to exempt from

12 the order any de minimis quantity of an agricultural com13 modity otherwise covered by the order and authority for

14 the board established under the order to require satisfac15 tory safeguards against improper use of the exemption.

16 (b) DIFFERENT PAYMENT AND REPORTING SCHED17 ULES.—An order issued under this title may contain au18 thority for the board established under the order to des19 ignate different payment and reporting schedules to recog20 nize differences in agricultural commodity industry mar21 keting practices and procedures used in different produc22 tion and importing areas.

23 (c) ACTIVITIES.—An order issued under this title

24 may contain authority to develop and carry out research,

25 promotion, and information activities designed to expand,
224

•HR 2973 IH

1 improve, or make more efficient the marketing or use of

2 the agricultural commodity covered by the order in domes3 tic and foreign markets. Section 605(e) shall apply with

4 respect to activities authorized under this subsection.

5 (d) RESERVE FUNDS.—An order issued under this

6 title may contain authority to reserve funds from assess7 ments collected under section 607 to permit an effective

8 and continuous coordinated program of research, pro9 motion and information in years when the yield from as10 sessments may be reduced, except that the amount of

11 funds reserved may not exceed the greatest aggregate

12 amount of the anticipated disbursements specified in

13 budgets approved under section 605 by the Secretary for

14 any two fiscal years.

15 (e) CREDITS.—An order issued under this title may

16 contain authority to provide credits of assessments for

17 those individuals who contribute to other similar generic

18 research, promotion and information programs at the

19 State, regional, or local level.

20 (f) ASSESSMENT OF IMPORTS.—An order issued

21 under this title may contain authority for the board estab22 lished under the order to assess under section 607 an im23 ported agricultural commodity, or products of such an ag24 ricultural commodity, at a rate comparable to the rate de-
225

•HR 2973 IH

1 termined by the appropriate board for the domestic agri2 cultural commodity covered by the order.

3 (g) OTHER AUTHORITY.—An order issued under this

4 title may contain authority to take any other action that—

5 (1) is not inconsistent with the purpose of this

6 title, any term or condition specified in section 605,

7 any rule issued to carry out this title; and

8 (2) is necessary to administer the order.

9 SEC. 607. ASSESSMENTS.

10 (a) ASSESSMENTS AUTHORIZED.—While an order is11 sued under this title is in effect with respect to a agricul12 tural commodity, assessments shall be—

13 (1) paid with respect to the agricultural com14 modity produced and marketed in the United States;

15 and

16 (2) paid with respect to the agricultural com17 modity imported into the United States, if the im18 ported agricultural commodity is covered by the

19 order pursuant to section 606(f).

20 (b) COLLECTION.—Assessments required under an

21 order shall be remitted to the board established under the

22 order at the time and in the manner prescribed by the

23 order.

24 (c) LIMITATION ON ASSESSMENTS.—Not more than

25 one assessment may be levied under subsection (a) with
226

•HR 2973 IH

1 respect to any agricultural commodity handled or im2 ported.

3 (d) ASSESSMENT RATES.—The board shall rec4 ommend to the Secretary one or more rates of assessment

5 to be levied under subsection (a). If approved by the Sec6 retary, the rates shall take effect. An order may provide

7 that an assessment rate may not be increased unless ap8 proved by a referendum conducted pursuant to section

9 611.

10 (e) LATE-PAYMENT AND INTEREST CHARGES.—

11 (1) IN GENERAL.—Late-payment and interest

12 charges may be levied on each person subject to an

13 order who fails to remit an assessment in accordance

14 with subsection (b).

15 (2) RATE.—The rate for the charges shall be

16 specified by the Secretary.

17 (f) INVESTMENT OF ASSESSMENTS.—Pending dis18 bursement of assessments under a budget approved by the

19 Secretary, a board may invest assessments collected under

20 this section in—

21 (1) obligations of the United States or any

22 agency thereof;

23 (2) general obligations of any State or any po24 litical subdivision thereof;
227

•HR 2973 IH

1 (3) interest-bearing accounts or certificates of

2 deposit of financial institutions that are members of

3 the Federal Reserve system; or

4 (4) obligations fully guaranteed as to principal

5 and interest by the United States.

6 (g) REFUND OF ASSESSMENTS FROM ESCROW AC7 COUNT.—

8 (1) ESCROW ACCOUNT.—During the period be9 ginning on the effective date of an order and ending

10 on the date the Secretary announces the results of

11 a referendum that is conducted under section

12 611(b)(1) with respect to the order, the board estab13 lished under the order shall—

14 (A) maintain an escrow account of the

15 kind described in subsection (f)(3) to be used to

16 refund assessments; and

17 (B) deposit funds in the account in accord18 ance with paragraph (2).

19 (2) AMOUNT TO BE DEPOSITED.—The board

20 shall deposit in the account 10 percent of the assess21 ments collected during the period referred to in

22 paragraph (1).

23 (3) RIGHT TO RECEIVE REFUND.—Subject to

24 paragraphs (4), (5), and (6), persons subject to an
228

•HR 2973 IH

1 order shall receive a refund of assessments collected

2 during the period referred to in paragraph (1) if—

3 (A) the assessments were remitted on be4 half of the person; and

5 (B) the order is not approved in the ref6 erendum.

7 (4) FORM OF DEMAND.—A person subject to an

8 order shall make the demand for a refund at such

9 time and in such form as specified by the order.

10 (5) PAYMENT OF REFUND.—A person entitled

11 to a refund shall be paid promptly after the board

12 receives satisfactory proof that the assessment for

13 which the refund is demanded was paid on behalf of

14 the person who makes the demand.

15 (6) PRORATION.—If the funds in the escrow ac16 count required by paragraph (1) are insufficient to

17 pay the amount of all refunds that persons subject

18 to an order otherwise would have a right to receive

19 under this subsection, the board shall prorate the

20 amount of the funds among all the persons.

21 (7) CLOSING OF ESCROW ACCOUNT.—If the

22 order is approved in a referendum conducted under

23 section 611(b)(1)—

24 (A) the escrow account shall be closed; and
229

•HR 2973 IH

1 (B) the funds shall be available to the

2 board for disbursement as authorized in the

3 order.

4 SEC. 608. PETITION AND REVIEW OF ORDERS.

5 (a) PETITION.—

6 (1) IN GENERAL.—A person subject to an order

7 issued under this title may file with the Secretary a

8 petition—

9 (A) stating that the order, any provision of

10 the order, or any obligation imposed in connec11 tion with the order, is not established in accord12 ance with law; and

13 (B) requesting a modification of the order

14 or an exemption from the order.

15 (2) HEARING.—The Secretary shall give the pe16 titioner an opportunity for a hearing on the petition,

17 in accordance with regulations issued by the Sec18 retary.

19 (3) RULING.—After the hearing, the Secretary

20 shall make a ruling on the petition. The ruling shall

21 be final, subject to review as set forth in subsection

22 (b).

23 (4) LIMITATION ON PETITION.—Any petition

24 filed under this subsection challenging an order, any

25 provision of the order, or any obligation imposed in
230

•HR 2973 IH

1 connection therewith, must be filed within two years

2 of the effective date of the order, provision, or obli3 gation subject to challenge in the petition.

4 (b) REVIEW.—

5 (1) COMMENCEMENT OF ACTION.—The district

6 court of the United States for any district in which

7 a person who is a petitioner under subsection (a) re8 sides or carries on business shall have jurisdiction to

9 review the final ruling on the petition of the person,

10 if a complaint for that purpose is filed not later than

11 20 days after the date of the entry of the final rul12 ing by the Secretary under subsection (a)(3).

13 (2) PROCESS.—Service of process in a proceed14 ing may be made on the Secretary by delivering a

15 copy of the complaint to the Secretary.

16 (3) REMANDS.—If the court determines that

17 the ruling is not in accordance with law, the court

18 shall remand the matter to the Secretary with direc19 tions—

20 (A) to make such ruling as the court deter21 mines to be in accordance with law; or

22 (B) to take such further action as, in the

23 opinion of the court, the law requires.

24 (c) EFFECT ON ENFORCEMENT PROCEEDINGS.—The

25 pendency of a petition filed under subsection (a) or an
231

•HR 2973 IH

1 action commenced under subsection (b) shall not operate

2 as a stay of any action authorized by section 609 to be

3 taken to enforce this title, including any rule, order, or

4 penalty in effect under this title.

5 SEC. 609. ENFORCEMENT.

6 (a) JURISDICTION.—The district courts of the United

7 States shall have jurisdiction specifically to enforce, and

8 to prevent and restrain a person from violating, an order

9 or regulation issued under this title.

10 (b) REFERRAL TO ATTORNEY GENERAL.—A civil ac11 tion authorized to be brought under this section shall be

12 referred to the Attorney General for appropriate action,

13 except that the Secretary is not required to refer to the

14 Attorney General a violation of this title if the Secretary

15 believes that the administration and enforcement of this

16 title would be adequately served by providing a suitable

17 written notice or warning to the person who committed

18 the violation or by an administrative action under this sec19 tion.

20 (c) CIVIL PENALTIES AND ORDERS.—

21 (1) CIVIL PENALTIES.—A person who willfully

22 violates an order or regulation issued by the Sec23 retary under this Act may be assessed by the Sec24 retary a civil penalty of not less than $1,000 and not

25 more than $10,000 for each violation.
232

•HR 2973 IH

1 (2) SEPARATE OFFENSE.—Each violation and

2 each day during which there is a failure to comply

3 with an order or regulation issued by the Secretary

4 shall be considered to be a separate offense.

5 (3) CEASE-AND-DESIST ORDERS.—In addition

6 to, or in lieu of, a civil penalty, the Secretary may

7 issue an order requiring a person to cease and desist

8 from violating the order or regulation.

9 (4) NOTICE AND HEARING.—No order assessing

10 a penalty or cease-and-desist order may be issued by

11 the Secretary under this subsection unless the Sec12 retary provides notice and an opportunity for a hear13 ing on the record with respect to the violation.

14 (5) FINALITY.—An order assessing a penalty or

15 a cease-and-desist order issued under this subsection

16 by the Secretary shall be final and conclusive unless

17 the person against whom the order is issued files an

18 appeal from the order with the United States court

19 of appeals, as provided in subsection (d).

20 (d) REVIEW BY COURT OF APPEALS.—

21 (1) IN GENERAL.—A person against whom an

22 order is issued under subsection (c) may obtain re23 view of the order by—
233

•HR 2973 IH

1 (A) filing, not later than 30 days after the

2 person receives notice of the order, a notice of

3 appeal in—

4 (i) the United States court of appeals

5 for the circuit in which the person resides

6 or carries on business; or

7 (ii) the United States Court of Ap8 peals for the District of Columbia Circuit,

9 and

10 (B) simultaneously sending a copy of the

11 notice of appeal by certified mail to the Sec12 retary.

13 (2) RECORD.—The Secretary shall file with the

14 court a certified copy of the record on which the

15 Secretary has determined that the person has com16 mitted a violation.

17 (3) STANDARD OF REVIEW.—A finding of the

18 Secretary under this section shall be set aside only

19 if the finding is found to be unsupported by substan20 tial evidence on the record.

21 (e) FAILURE TO OBEY ORDERS.—A person who fails

22 to obey a valid cease-and-desist order issued by the Sec23 retary under this section, after an opportunity for a hear24 ing, shall be subject to a civil penalty assessed by the Sec25 retary of not less than $1,000 and not more than $10,000
234

•HR 2973 IH

1 for each offense. Each day during which the failure contin2 ues shall be considered to be a separate violation of the

3 order.

4 (f) FAILURE TO PAY PENALTIES.—If a person fails

5 to pay a civil penalty imposed under this section by the

6 Secretary, the Secretary shall refer the matter to the At7 torney General for recovery of the amount assessed in the

8 district court of the United States for any district in which

9 the person resides or carries on business. In the action,

10 the validity and appropriateness of the order imposing the

11 civil penalty shall not be subject to review.

12 (g) ADDITIONAL REMEDIES.—The remedies provided

13 in this section shall be in addition to, and not exclusive

14 of, other remedies that may be available.

15 SEC. 610. INVESTIGATIONS AND POWER TO SUBPOENA.

16 (a) INVESTIGATIONS.—The Secretary may make such

17 investigations as the Secretary considers necessary—

18 (1) for the effective administration of this title;

19 or

20 (2) to determine whether any person subject to

21 this title has engaged, or is about engage, in any ac22 tion that constitutes or will constitute a violation of

23 this title or any order or regulation issued under this

24 title.
235

•HR 2973 IH

1 (b) SUBPOENAS, OATHS, AND AFFIRMATIONS.—For

2 the purpose of any investigation under subsection (a), the

3 Secretary may administer oaths and affirmations, sub4 poena witnesses, compel the attendance of witnesses, take

5 evidence, and require the production of any records or doc6 uments that are relevant to the inquiry. The attendance

7 of witnesses and the production of records or documents

8 may be required from any place in the United States.

9 (c) AID OF COURTS.—In the case of contumacy by,

10 or refusal to obey a subpoena issued to, any person, the

11 Secretary may invoke the aid of any court of the United

12 States within the jurisdiction of which the investigation

13 or proceeding is carried on, or where the person resides

14 or carries on business, in order to require the attendance

15 and testimony of the person or the production of records

16 or documents. The court may issue an order requiring the

17 person to appear before the Secretary to produce records

18 or documents or to give testimony regarding the matter

19 under investigation.

20 (d) CONTEMPT.—Any failure to obey the order of the

21 court may be punished by the court as a contempt of the

22 court.

23 (e) PROCESS.—Process in any case under this section

24 may be served in the judicial district in which the person
236

•HR 2973 IH

1 resides or carries on business or wherever the person may

2 be found.

3 SEC. 611. REFERENDA.

4 (a) INITIAL REFERENDUM.—

5 (1) OPTIONAL REFERENDUM.—For the purpose

6 of ascertaining whether the persons to be covered by

7 an order favor the order going into effect, the order

8 may provide for the Secretary to conduct an initial

9 referendum among those persons to be subject to an

10 assessment under section 607 who, during a rep11 resentative period determined by the Secretary, en12 gaged in—

13 (A) the production or handling of the agri14 cultural commodity covered by the order; or

15 (B) the importation of the agricultural

16 commodity.

17 (2) PROCEDURE.—The results of the referen18 dum shall be determined in accordance with sub19 section (c). The Secretary may require that the agri20 cultural commodity industry involved post a bond or

21 other collateral to cover the cost of the referendum.

22 (b) REQUIRED REFERENDA.—

23 (1) IN GENERAL.—For the purpose of

24 ascertaining whether the persons covered by an

25 order favor the continuation, suspension, or termi-
237

•HR 2973 IH

1 nation of the order, the Secretary shall conduct a

2 referendum among persons subject to such assess3 ments who, during a representative period deter4 mined by the Secretary, have engaged in—

5 (A) the production or handling of the agri6 cultural commodity covered by the order; or

7 (B) the importation of the agricultural

8 commodity.

9 (2) TIME FOR REFERENDUM.—The referendum

10 shall be conducted not later than 36 months after

11 assessments first begin under the order.

12 (3) EXCEPTION.—This subsection shall not

13 apply if an initial referendum was conducted under

14 subsection (a).

15 (c) SUBSEQUENT REFERENDA.—The Secretary shall

16 conduct a subsequent referendum not later than 7 years

17 after assessments first begin under the order, or at the

18 request of the board established under the order, or at

19 the request of 10 percent or more of the number of per20 sons eligible to vote under subsection (b)(1), to determine

21 if the persons favor the continuation, suspension or termi22 nation of the order.

23 (d) OTHER REFERENDA.—The Secretary may con24 duct a referendum at any time in order to determine

25 whether the continuance, suspension, or termination of the
238

•HR 2973 IH

1 order or a provision thereof is favored by persons eligible

2 to vote under subsection (b)(1).

3 (e) APPROVAL OF ORDER.—An order may provide for

4 its approval in a referendum—

5 (1) by a majority of those persons voting;

6 (2) by persons voting who represent a majority

7 of the volume of the agricultural commodity; or

8 (3) by a majority of those persons voting who

9 represent a majority of the volume of the agricul10 tural commodity.

11 (f) COSTS OF REFERENDA.—The board established

12 under an order with respect to which a referendum is con13 ducted under this section shall reimburse the Secretary

14 for any expenses incurred by the Secretary to conduct the

15 referendum.

16 (g) MANNER OF CONDUCTING REFERENDA.—

17 (1) IN GENERAL.—A referendum conducted

18 under this section shall be conducted in the manner

19 determined by the Secretary to be appropriate.

20 (2) ADVANCE REGISTRATION.—If the Secretary

21 determines that an advance registration of eligible

22 voters in a referendum is necessary before the voting

23 period in order to facilitate the conduct of the ref24 erendum, the Secretary may institute the advance

25 registration procedures by mail, or in person
239

•HR 2973 IH

1 through the use of national and local offices of the

2 Department.

3 (3) VOTING.—Eligible voters may vote by mail

4 ballot in the referendum or in person if so prescribed

5 by the Secretary.

6 (4) NOTICE.—Not later than 30 days before a

7 referendum is conducted under this section with re8 spect to an order, the Secretary shall notify the agri9 cultural commodity industry involved, in such man10 ner as determined by the Secretary, of the period

11 during which voting in the referendum will occur.

12 Such notice shall explain any registration and voting

13 procedures established under this subsection.

14 SEC. 612. SUSPENSION OR TERMINATION.

15 (a) MANDATORY SUSPENSION OR TERMINATION.—

16 The Secretary shall suspend or terminate an order or a

17 provision of an order whenever the Secretary finds that

18 an order or a provision of an order obstructs or does not

19 tend to effectuate the purpose of this title, or whenever

20 the Secretary determines that the order or a provision of

21 an order is not favored by those voting in referenda con22 ducted under section 611.

23 (b) SUSPENSION OR TERMINATION.—If, as a result

24 of referenda conducted under section 611, the Secretary
240

•HR 2973 IH

1 determines that an order is not approved, the Secretary

2 shall—

3 (1) not later than 180 days after making the

4 determination, suspend or terminate, as the case

5 may be, collection of assessments under the order;

6 and

7 (2) as soon as practicable, suspend or termi8 nate, as the case may be, activities under the order

9 in an orderly manner.

10 SEC. 613. AMENDMENTS TO ORDERS.

11 The provisions of this title applicable to an order shall

12 be applicable to amendments to an order, except that the

13 provisions of section 611 shall not apply to amendments.

14 SEC. 614. EFFECT ON OTHER LAWS.

15 This title shall not be construed to affect or preempt

16 any other Federal or State law authorizing promotion or

17 research relating to an agricultural commodity.

18 SEC. 615. REGULATIONS.

19 The Secretary may issue the regulations as may be

20 necessary to carry out the provisions of this title and the

21 power vested in the Secretary under this title.

22 SEC. 616. AUTHORIZATION OF APPROPRIATIONS.

23 (a) IN GENERAL.—There are authorized to be appro24 priated such sums as may be necessary to carry out this

25 title.
241

•HR 2973 IH

1 (b) LIMITATION ON EXPENDITURES FOR ADMINIS2 TRATIVE EXPENSES.—Funds appropriated to carry out

3 this title may not be expended for the payment of expenses

4 incurred by a board to administer an order.

5 TITLE VII—MISCELLANEOUS

6 PROVISIONS

7 Subtitle A—General Conservation

8 Provisions

9 SEC. 701. CLARIFICATION OF EFFECT OF RESOURCE PLAN10 NING ON ALLOCATION OR USE OF WATER.

11 (a) NATIONAL FOREST SYSTEM RESOURCE PLAN12 NING.—Section 6 of the Forest and Rangeland Renewable

13 Resources Planning Act of 1974 (16 U.S.C. 1604) is

14 amended by adding at the end the following new sub15 section:

16 ‘‘(n) LIMITATION ON AUTHORITY.—Nothing in this

17 section shall be construed to supersede, abrogate or other18 wise impair any right or authority of a State to allocate

19 quantities of water (including boundary waters). Nothing

20 in this section shall be implemented, enforced, or con21 strued to allow any officer or agency of the United States

22 to utilize directly or indirectly the authorities established

23 under this section to impose any requirement not imposed

24 by the State which would supersede, abrogate, or other25 wise impair rights to the use of water resources allocated
242

•HR 2973 IH

1 under State law, interstate water compact, or Supreme

2 Court decree, or held by the United States for use by a

3 State, its political subdivisions, or its citizens. No water

4 rights arise in the United States or any other person

5 under the provisions of this Act.’’.

6 (b) AUTHORIZATION TO GRANT RIGHTS-OF-WAY.—

7 Section 501 of the Federal Land Policy and Management

8 Act of 1976 (43 U.S.C. 1761) is amended as it applies

9 to the Secretary of Agriculture—

10 (1) in subsection (c)(1)—

11 (A) by striking subparagraph (B);

12 (B) in subparagraph (D), by striking

13 ‘‘originally constructed’’;

14 (C) in subparagraph (G), by striking

15 ‘‘1996’’ and inserting ‘‘1998’’; and

16 (D) by redesignating subparagraphs (C)

17 through (G) as subparagraphs (B) through (F),

18 respectively;

19 (2) in subsection (c)(3)(A), by striking the sec20 ond and third sentences; and

21 (3) by adding at the end the following new sub22 section:

23 ‘‘(e) EFFECT ON VALID EXISTING RIGHTS.—Not24 withstanding any provision of this section, the Secretary

25 of Agriculture may not require, as a condition of, or in
243

•HR 2973 IH

1 connection with, the renewal of a right-of-way under this

2 section, a restriction or limitation on the operation, use,

3 repair, or replacement of an existing water supply facility

4 which is located on or above National Forest lands or the

5 exercise and use of existing water rights, if such condition

6 would reduce the quantity of water which would otherwise

7 be made available for use by the owner of such facility

8 or water rights, or cause an increase in the cost of the

9 water supply provided from such facility.’’.

10 SEC. 702. PAYMENT OF FILING FEES BY UNITED STATES IN

11 CONNECTION WITH WATER RIGHTS ADJU12 DICATIONS.

13 (a) PAYMENT OF FILING FEES.—Subsection (a) of

14 section 208 of the Act of July 10, 1952 (43 U.S.C. 666;

15 commonly referred to as the ‘‘McCarran Amendment’’),

16 is amended in the second sentence by striking ‘‘and (2)

17 shall’’ and inserting ‘‘(2) pay any filing fee that is assessed

18 against the United States as a claimant in a water rights

19 adjudication, is generally applicable to all such claimants,

20 and is used to pay administrative and judicial expenses

21 attributable to water rights adjudications, and (3)’’.

22 (b) APPLICATION OF AMENDMENT.—The amend23 ments made by subsection (a) shall apply to any suit for

24 the adjudication of water rights under State law pending
244

•HR 2973 IH

1 on the date of the enactment of this Act or commenced

2 after such date.

3 SEC. 703. PROVISION OF TECHNICAL ASSISTANCE TO

4 STATE FORESTERS.

5 Effective September 30, 1996, section 5 of the Coop6 erative Forestry Assistance Act of 1978 (16 U.S.C.

7 2103a) is amended—

8 (1) by striking subsections (b) and (h); and

9 (2) by redesignating subsections (c), (d), (e),

10 (f), and (g) as subsections (b), (c), (d), (e), and (f),

11 respectively.

12 SEC. 704. REPEAL OF STATE TECHNICAL COMMITTEES.

13 (a) REPEAL.—Subtitle G of title XII of the Food Se14 curity Act of 1985 (16 U.S.C. 3861 and 3862) is repealed.

15 (b) CONFORMING AMENDMENT.—Section 1628 of the

16 Food, Agriculture, Conservation, and Trade Act of 1990

17 (7 U.S.C. 5831) is amended by striking ‘‘, subtitle G of

18 title XIV’’ both places it appears.

19 SEC. 705. REPEAL OF COMPOSTING RESEARCH AND EXTEN20 SION PROGRAM.

21 Section 1456 of the Food, Agriculture, Conservation,

22 and Trade Act of 1990 (7 U.S.C. 3130) is repealed.
245

•HR 2973 IH

1 SEC. 706. REPEAL OF FARMS FOR THE FUTURE ACT OF

2 1990.

3 The Farms for the Future Act of 1990 (chapter 2

4 of subtitle E of title XIV of Public Law 101–624; 7 U.S.C.

5 4201 note) is repealed.

6 SEC. 707. ADMINISTRATION OF ENVIRONMENTAL PRO7 GRAMS.

8 (a) REPEAL.—Subtitle F of the Food, Agriculture,

9 Conservation, and Trade Act of 1990 (7 U.S.C. 5401–

10 5403) is repealed.

11 (b) CONFORMING AMENDMENTS.—Such Act is fur12 ther amended—

13 (1) in section 1482(d) (7 U.S.C. 5502(d)), by

14 striking ‘‘in conjunction with the report required

15 under section 1473(c). The report’’ and inserting ‘‘,

16 which’’; and

17 (2) in section 1499(a) (7 U.S.C. 5506(a)), by

18 striking the last sentence.

19 SEC. 708. PRIVATE GRAZING LANDS CONSERVATION AS20 SISTANCE.

21 (a) ASSISTANCE AUTHORIZED.—The Secretary of

22 Agriculture shall establish a program to provide technical,

23 educational, and related assistance to owners of private

24 grazing land, managers of private grazing land, and local

25 conservation districts managing private grazing land, to

26 assist such owners and managers to voluntarily conserve
246

•HR 2973 IH

1 or enhance private grazing land. Assistance shall be pro2 vided only at the request of the owner or manager of the

3 private grazing land.

4 (b) PERSONNEL.—The Secretary shall make avail5 able sufficient personnel of the Natural Resources Con6 servation Service to deliver and coordinate the provision

7 of assistance under this section to owners and managers

8 of private grazing lands. Such personnel shall be trained

9 in pasture and range management.

10 (c) BUDGET PROPOSAL.—The budget of the Presi11 dent for a fiscal year submitted to Congress under section

12 1105 of title 31, United States Code, shall specify, as part

13 of the budget of the Department of Agriculture and the

14 Natural Resources Conservation Service, the amount re15 quested for that fiscal year to carry out this section.

16 (d) PRIVATE GRAZING LAND DEFINED.—For the

17 purpose of this section, the term ‘‘private grazing lands’’

18 means privately owned, State owned, tribal, and non-fed19 erally owned rangelands, pasturelands, grazed forestlands,

20 and haylands.

21 (e) AUTHORIZATION OF APPROPRIATIONS.—There

22 are authorized to be appropriated to carry out this section

23 $20,000,000 for fiscal year 1996, $40,000,000 for fiscal

24 year 1997, and $60,000,000 for each fiscal year there25 after.
247

•HR 2973 IH

1 Subtitle B—Inspection

2 SEC. 721. FEDERAL AND STATE COOPERATION UNDER FED3 ERAL MEAT INSPECTION ACT.

4 (a) REMOVAL OF INTRASTATE DISTRIBUTION LIMI5 TATION.—Subsection (a)(1) of section 301 of the Federal

6 Meat Inspection Act (21 U.S.C. 661) is amended by strik7 ing ‘‘solely for distribution within such State’’ at the end

8 of paragraph (1).

9 (b) USE OF STATE INSPECTORS.—Subsection (a) of

10 such section is amended by adding at the end the following

11 new paragraph:

12 ‘‘(5) In addition to appointing inspectors under

13 section 21, the Secretary may enter into agreements

14 to utilize officers and employees of a State or the

15 District of Columbia to conduct such examinations,

16 investigations, and inspections authorized under this

17 Act as the Secretary determines practicable.’’.

18 (c) TERMINATION OF DESIGNATION OF STATE AS

19 SUBJECT TO FEDERAL INSPECTION FOR INTRASTATE

20 DISTRIBUTION.—Subsection (c)(3) of such section is

21 amended by striking ‘‘, with respect to the operations and

22 transactions within such State which are regulated under

23 subparagraph (1), he’’ and inserting ‘‘with respect to all

24 establishments within its jurisdiction which do not operate

25 under Federal inspection under title I and at which any
248

•HR 2973 IH

1 cattle, sheep, swine, goats, or equines are slaughtered for

2 use as human food (or their carcasses or parts or products

3 thereof are prepared for use as human food), and with

4 respect to the distribution of carcasses, parts thereof,

5 meat, or meat food products of such animals within the

6 States, the Secretary’’.

7 (d) EXPANSION OF STATE INSPECTION AUTHOR8 ITY.—Such section is further amended—

9 (1) by redesignating subsection (d) as sub10 section (e); and

11 (2) by inserting after subsection (c) the follow12 ing new subsection:

13 ‘‘(d)(1) Except as provided in paragraph (2), car14 casses, parts of carcasses, meat, and meat food products

15 of cattle, sheep, swine, goats, or equines prepared under

16 State inspection in any State (other than a State des17 ignated under subsection (c)) in compliance with the meat

18 inspection law of the State shall be eligible for sale or

19 transportation in interstate commerce, and for entry into

20 and use in the preparation of products in establishments

21 at which Federal inspection is maintained under title I,

22 in the same manner and to the same extent as products

23 prepared at such establishments.
249

•HR 2973 IH

1 ‘‘(2) State inspected articles described in paragraph

2 (1), and federally inspected articles prepared (in whole or

3 in part) from such State inspected articles—

4 ‘‘(A) shall not be eligible for sale or transpor5 tation in foreign commerce; and

6 ‘‘(B) shall be separated at all times from all

7 other federally inspected articles in any federally in8 spected establishment that engages in the prepara9 tion, sale, or transportation of carcasses, parts of

10 carcasses, meat, or meat food products, for foreign

11 commerce.

12 ‘‘(3) All carcasses, parts of carcasses, meat, and meat

13 food products that are inspected in a program of inspec14 tion in a State (other than a State designated under sub15 section (c)) pursuant to State law shall be identified as

16 so inspected only by official marks that identify the State

17 and are such design as the State shall prescribe. Federally

18 inspected articles prepared (in whole or in part) from such

19 State inspected articles shall be identified as so inspected

20 only by the same official marks as prescribed by the Sec21 retary for articles slaughtered or prepared under title I.

22 ‘‘(4) Except as provided in paragraph (5), the opera23 tor of an establishment operated under Federal or State

24 inspection who wishes to transfer to State or Federal in-
250

•HR 2973 IH

1 spection, as the case may be, may do so only on October

2 1 of any year. Such transfer shall occur only if—

3 ‘‘(A) the operator provides written notice of the

4 intention to transfer to both inspection agencies at

5 least six months in advance of that date; and

6 ‘‘(B) the Secretary determines that the transfer

7 will effectuate the purposes set forth in section 2

8 and will not adversely affect the stability of the total

9 State and Federal inspection systems.

10 ‘‘(5) The Secretary may permit the operator of an

11 establishment to transfer from State to Federal inspection

12 at any time if the operator presents clear and convincing

13 evidence to the Secretary that the establishment intends

14 to, and will be able to, engage in foreign commerce to a

15 substantial extent in a manner which would require Fed16 eral inspection.

17 ‘‘(6) For purposes of this subsection, the term ‘inter18 state commerce’ means commerce between States or be19 tween a State and the District of Columbia.’’.

20 (e) PROHIBITION ON ADDITIONAL OR DIFFERENT

21 STATE REQUIREMENTS.—Section 408 of such Act (21

22 U.S.C. 678) is amended to read as follows:

23 ‘‘SEC. 408. PREEMPTION.

24 ‘‘(a) PREMISES, FACILITIES AND OPERATIONS.—Re25 quirements within the scope of this Act with respect to
251

•HR 2973 IH

1 premises, facilities and operations of any establishment at

2 which inspection is provided under title I, which are in

3 addition to, or different than those made under this Act

4 may not be imposed by any State or Territory or the Dis5 trict of Columbia. However, any such jurisdiction may im6 pose recordkeeping and other requirements within the

7 scope of section 202, if consistent with such section, with

8 respect to any such establishment.

9 ‘‘(b) MARKING, LABELING, PACKAGING, AND INGRE10 DIENTS.—(1) Except as provided in paragraph (2), mark11 ing, labeling, packaging, or ingredient requirements in ad12 dition to (or different than) those made under this Act

13 may not be imposed by any State or Territory or the Dis14 trict of Columbia with respect to articles prepared at any

15 establishment under Federal inspection in accordance with

16 the requirements of title I or with respect to articles pre17 pared for commerce at any State inspected establishment

18 in accordance with the requirements of section 301(d).

19 ‘‘(2) A State or territory or the District of Columbia

20 may, consistent with the requirements under this Act, ex21 ercise concurrent jurisdiction with the Secretary over arti22 cles distributed in commerce or otherwise subject to this

23 Act, for the purpose of preventing the distribution for

24 human food purposes of any such articles which are not

25 in compliance with the requirements under this Act and
252

•HR 2973 IH

1 are outside of any federally or State inspected establish2 ment, or in the case of imported articles, which are not

3 at such an establishment, after their entry into the United

4 States.

5 ‘‘(c) OTHER MATTERS.—This Act shall not preclude

6 any State or Territory or the District of Columbia from

7 imposing a requirement or taking other action, consistent

8 with this Act, with respect to any other matters regulated

9 under this Act.’’.

10 SEC. 722. FEDERAL AND STATE COOPERATION UNDER THE

11 POULTRY PRODUCTS INSPECTION ACT.

12 (a) REMOVAL OF INTRASTATE DISTRIBUTION LIMI13 TATION.—Subsection (a)(1) of section 5 of the Poultry

14 Products Inspection Act (21 U.S.C. 454) is amended by

15 striking ‘‘solely for distribution within such State’’ at the

16 end of paragraph (1).

17 (b) USE OF STATE INSPECTORS.—Subsection (a) of

18 such section is amended by adding at the end the following

19 new paragraph:

20 ‘‘(5) The Secretary may enter into agreements

21 to utilize officers and employees of a State or the

22 District of Columbia to conduct such examinations,

23 investigations, and inspections authorized under this

24 Act as the Secretary determines practicable.’’.
253

•HR 2973 IH

1 (c) TERMINATION OF DESIGNATION OF STATE AS

2 SUBJECT TO FEDERAL INSPECTION FOR INTRASTATE

3 DISTRIBUTION.—Subsection (c)(3) of such section is

4 amended by striking ‘‘, with respect to the operations and

5 transactions within such State which are regulated under

6 subparagraph (1) of this paragraph (c), he’’ and inserting

7 ‘‘with respect to all establishments within its jurisdiction

8 which do not operate under Federal inspection under this

9 Act and at which any poultry are slaughtered, or any poul10 try products are processed, for use as human food, and

11 with respect to the distribution of poultry products within

12 the States, the Secretary’’.

13 (d) EXPANSION OF STATE INSPECTION AUTHOR14 ITY.—Such section is further amended—

15 (1) by redesignating subsection (d) as sub16 section (e); and

17 (2) by inserting after subsection (c) the follow18 ing new subsection:

19 ‘‘(d)(1) Except as provided in paragraph (2), poultry

20 products processed under State inspection in any State

21 (other than a State designated under subsection (c)) in

22 compliance with the poultry products inspection law of the

23 State shall be eligible for sale or transportation in inter24 state commerce, and for entry into and use in the prepara25 tion of products in establishments at which Federal in-
254

•HR 2973 IH

1 spection is maintained under this Act, in the same manner

2 and to the same extent as poultry products processed at

3 such establishments. Poultry products complying with the

4 requirements of the poultry product inspection laws of the

5 State (other than a State designated under subsection (c))

6 in which the products were processed shall be considered

7 as complying with this Act.

8 ‘‘(2) State inspected poultry products described in

9 paragraph (1), and federally inspected poultry products

10 processed (in whole or in part) from such State inspected

11 poultry products—

12 ‘‘(A) shall not be eligible for sale or transpor13 tation in foreign commerce; and

14 ‘‘(B) shall be separated at all times from all

15 other federally inspected poultry products in any

16 federally inspected establishment that engages in the

17 processing, sale, or transportation of poultry prod18 ucts for foreign commerce.

19 ‘‘(3) All poultry products that are inspected in a pro20 gram of inspection in a State (other than a State des21 ignated under subsection (c)) pursuant to State law shall

22 be identified as so inspected only by official marks that

23 identify the State and are such design as the State shall

24 prescribe. Federally inspected poultry products processed

25 (in whole or in part) from such State inspected poultry
255

•HR 2973 IH

1 products shall be identified as so inspected only by the

2 same official marks as prescribed by the Secretary for

3 poultry products processed under this Act (other than this

4 section or section 11).

5 ‘‘(4) Except as provided in paragraph (5), the opera6 tor of an establishment operated under Federal or State

7 inspection who wishes to transfer to State or Federal in8 spection, as the case may be, may do so only on October

9 1 of any year. Such transfer shall occur only if—

10 ‘‘(A) the operator provides written notice of the

11 intention to transfer to both inspection agencies at

12 least six months in advance of that date; and

13 ‘‘(B) the Secretary determines that the transfer

14 will effectuate the legislative policy set forth in sec15 tion 3 and will not adversely affect the stability of

16 the total State and Federal inspection systems.

17 ‘‘(5) The Secretary may permit the operator of an

18 establishment to transfer from State to Federal inspection

19 at any time if the operator presents clear and convincing

20 evidence to the Secretary that the establishment intends

21 to, and will be able to, engage in foreign commerce to a

22 substantial extent in a manner which would require Fed23 eral inspection.
256

•HR 2973 IH

1 ‘‘(6) For purposes of this subsection, the term ‘inter2 state commerce’ means commerce between States or be3 tween a State and the District of Columbia.’’.

4 (e) PROHIBITION ON ADDITIONAL OR DIFFERENT

5 STATE REQUIREMENTS.—Section 23 of such Act (21

6 U.S.C. 467e) is amended to read as follows:

7 ‘‘SEC. 23. PREEMPTION.

8 ‘‘(a) PREMISES, FACILITIES AND OPERATIONS.—Re9 quirements within the scope of this Act with respect to

10 premises, facilities and operations of any official establish11 ment, which are in addition to, or different than those

12 made under this Act may not be imposed by any State

13 or territory or the District of Columbia. However, any

14 such jurisdiction may impose recordkeeping and other re15 quirements within the scope of section 11(b), if consistent

16 with such section, with respect to any such establishment.

17 ‘‘(b) MARKING, LABELING, PACKAGING, AND INGRE18 DIENTS.—(1) Except as provided in paragraph (2), mark19 ing, labeling, packaging, or ingredient requirements in ad20 dition to (or different than) those made under this Act

21 may not be imposed by any State or territory or the Dis22 trict of Columbia with respect to articles prepared at any

23 establishment under Federal inspection in accordance with

24 the requirements of this Act or with respect to articles

25 prepared for commerce at any State inspected establish-
257

•HR 2973 IH

1 ment in accordance with the requirements of section 5(d).

2 Further storage or handling requirements found by the

3 Secretary to unduly interfere with the free flow of poultry

4 products in commerce shall not be imposed by any State

5 or territory or the District of Columbia.

6 ‘‘(2) A State or territory or the District of Columbia

7 may, consistent with the requirements of this Act, exercise

8 concurrent jurisdiction with the Secretary over articles

9 distributed in commerce or otherwise subject to this Act,

10 for the purpose of preventing the distribution for human

11 food purposes of any such articles which are not in compli12 ance with the requirements of this Act and are outside

13 of any federally or State inspected establishment, or in

14 the case of imported articles, which are not at such an

15 establishment, after their entry into the United States.

16 ‘‘(c) OTHER MATTERS.—This Act shall not preclude

17 any State or territory or the District of Columbia from

18 making requirements or taking other action, consistent

19 with this Act, with respect to any other matters regulated

20 under this Act.’’.

21 SEC. 723. ESTABLISHMENT OF SAFE MEAT AND POULTRY

22 INSPECTION PANEL.

23 (a) ESTABLISHMENT OF PANEL.—The Federal Meat

24 Inspection Act (21 U.S.C. 601 et seq.) is amended by add25 ing at the end the following new section:
258

•HR 2973 IH

1 ‘‘SEC. 411. SAFE MEAT AND POULTRY INSPECTION PANEL.

2 ‘‘(a) ESTABLISHMENT.—There is hereby established

3 in the Department of Agriculture a permanent advisory

4 panel to be known as the ‘Safe Meat and Poultry Inspec5 tion Panel’.

6 ‘‘(b) PURPOSE.—The Safe Meat and Poultry Inspec7 tion Panel shall review, evaluate, and make comments and

8 recommendations in the form of a report to the Secretary

9 on the adequacy, necessity, safety, cost-effectiveness, and

10 scientific merit of the following:

11 ‘‘(1) Inspection procedures of, and work rules

12 and worker relations involving Federal employees

13 employed in, plants inspected under this Act.

14 ‘‘(2) Informal petitions or proposals for changes

15 in inspection procedures, processes, and techniques

16 of plants inspected under this Act.

17 ‘‘(3) Formal changes in meat inspection regula18 tions, either in notice, proposed, or final form, pro19 mulgated by virtue of authority granted by this Act

20 and within the time limits prescribed for formal

21 comments on such changes.

22 ‘‘(4) Such other matters as may be referred to

23 the panel by the Secretary regarding the quality or

24 effectiveness of a safe and cost-effective meat inspec25 tion system under this Act.
259

•HR 2973 IH

1 ‘‘(c) COMPOSITION OF PANEL.—The Safe Meat and

2 Poultry Inspection Panel shall be composed of 7 members,

3 not less than 5 of which members shall be from the food,

4 meat, and poultry science profession, appointed to stag5 gered terms not to exceed three years by the Secretary

6 from nominations received from the National Institutes of

7 Health and the American Meat Science Association and

8 based upon the professional qualifications of the nominees.

9 ‘‘(d) NOMINATIONS.—In constituting the original

10 Safe Meat and Poultry Inspection Panel, the Secretary

11 shall initially solicit 6 nominees from the National Insti12 tutes of Health and 6 nominees from the American Meat

13 Science Association for membership on the panel. Any

14 subsequent vacancy on the panel shall be filled by the Sec15 retary after soliciting 2 nominees from the National Insti16 tutes of Health and 2 nominees from the American Meat

17 Science Association. Nominees shall have a background in

18 public health issues and a scientific expertise in food,

19 meat, and poultry sciences or in veterinary science. The

20 Secretary may require nominees to submit such additional

21 information as the Secretary may deem necessary prior

22 to completing the selection process. Should any list of

23 nominees provided under this subsection be unsatisfactory,

24 the Secretary may request an additional set of nominees

25 from the nominating entities.
260

•HR 2973 IH

1 ‘‘(e) COMPENSATION.—Each member of the panel

2 shall receive per diem compensation at a rate not in excess

3 of that fixed for GS–18 of the General Schedule as may

4 be determined by the Secretary, except that any such

5 member who holds another office or position under the

6 Federal Government the compensation of which exceeds

7 such rate may elect to receive compensation at the rate

8 provided for such other office or position in lieu of the

9 compensation provided by this subsection.

10 ‘‘(f) CONFLICT OF INTEREST.—The Secretary shall

11 promulgate regulations regarding conflicts of interest with

12 respect to the members of the panel.

13 ‘‘(g) PUBLICATION IN FEDERAL REGISTER.—Any re14 port of the panel to the Secretary shall be published in

15 the Federal Register.

16 ‘‘(h) SECRETARIAL RESPONSE.—Within 90 days of

17 the publication of a panel report under this section, the

18 Secretary shall publish in the Federal Register any re19 sponse required of the Secretary to that report.

20 ‘‘(i) FUNDING.—From funds available to the Sec21 retary, the Secretary shall allocate such sums as may be

22 necessary to carry out this section.’’.

23 (b) CROSS REFERENCE IN POULTRY PRODUCTS IN24 SPECTION ACT.—The Poultry Products Inspection Act
261

•HR 2973 IH

1 (21 U.S.C. 451 et seq.) is amended by adding at the end

2 thereof the following new section:

3 ‘‘SEC. 30. SAFE MEAT AND POULTRY INSPECTION PANEL.

4 ‘‘The advisory panel known as the ‘Safe Meat and

5 Poultry Inspection Panel’ established in section 411 of the

6 Federal Meat Inspection Act shall also review, evaluate

7 and make comments and recommendations in the form of

8 a report to the Secretary on the adequacy, necessity, safe9 ty, cost-effectiveness, and scientific merit of the following:

10 (1) Inspection procedures of, and work rules

11 and worker relations involving Federal employees

12 employed in, plants inspected under this Act.

13 (2) Informal petitions or proposals for changes

14 in inspection procedures, processes, or techniques of

15 plants inspected under this Act.

16 (3) Formal changes in poultry inspection regu17 lations, either in notice, proposed, or final form, pro18 mulgated by virtue of authority granted by this Act

19 and within the time limits prescribed for formal

20 comments on such changes.

21 (4) Such other matters as may be referred to

22 the panel by the Secretary regarding the quality or

23 effectiveness of a safe and cost-effective poultry in24 spection system under this Act.’’.

Æ
262

•HR 2973 IH

HR 2973 IH——2

HR 2973 IH——3

HR 2973 IH——4

HR 2973 IH——5

HR 2973 IH——6

HR 2973 IH——7

HR 2973 IH——8

HR 2973 IH——9

HR 2973 IH——10

HR 2973 IH——11

HR 2973 IH——12

HR 2973 IH——13

HR 2973 IH——14

HR 2973 IH——15

HR 2973 IH——16

HR 2973 IH——17

HR 2973 IH——18